CITY COUNCIL AGENDA
February 4, 2025
REGULAR SESSION - 6:00 P.M.
CLOSED SESSION FOLLOWING
ANDERSON CITY HALL
1887 Howard Street
PARTICIPATION BY PUBLIC IN MEETING
Please review the Agenda to determine if the subject you wish to discuss is scheduled for Council consideration. If it is on the Agenda, you will have an opportunity when that matter comes up for discussion to briefly address the Council.
If the subject is not on tonight’s Agenda, please complete an Agenda Request Form (on Clerk’s table) and present it to the City Council Clerk. You will have the opportunity to speak on the subject under Item 5.2. However, if the item is not on the Agenda, each speaker will be limited to one three (3) minute opportunity to speak, unless the City Council makes an exception due to special circumstances.
The Brown Act prohibits the Council from taking action on any item not placed on the printed Agenda in most cases.
The Brown Act requires any non-confidential documents or writings distributed to a majority of the City Council less than 72 hours before a regular meeting will be made available to members of the public at the same time they are distributed.
City Council meetings are televised and can be seen live on Cable Public Access Channel 181 (previously Channel 11) and on tape delay the following morning at 10:00 a.m. City Council meetings may also be viewed on the City’s website at www.ci.anderson.ca.us by clicking on the TV icon on the Home Page.
In compliance with the Americans with Disabilities Act, the City of Anderson will make available to members of the public any special assistance necessary to participate in this meeting. The public should contact the City Clerk’s office (378-6646) to make such a request. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
This is an Equal Opportunity Program. Discrimination is prohibited by Federal Law.
Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, D.C. 20250.
City Council Meeting
February 4, 2025
REGULAR SESSION – 6:00 P.M.
1.0 ROLL CALL – COUNCIL:
Councilmember Simmons
Councilmember Gallagher
Councilmember Hale
Vice-Mayor Gallier
Mayor Baugh
2.0 INVOCATION – Pastor Perry Peterson, Crossroads Church, will give the invocation.
3.0 PLEDGE OF ALLEGIANCE – Mayor Susie Baugh.
4.1 INTRODUCTIONS – Finance Director Cindy Wheeler will introduce new Account Clerk Mackenzie Thieler.
5.2 PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA - This is the time to address public comments by any member of the public to the Council regarding an item not on the agenda. Each comment must be limited to 3 minutes or less and on an item within the City’s subject matter jurisdiction. The Brown Act does not permit any action or discussion on items not listed on the agenda. Are there any public comments?
CONSENT AGENDA
6.0 CONSENT AGENDA - Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any member of the public, staff or City Council may request that an item be removed from the Consent Agenda for separate discussion. Are there any requests to remove any items from the Consent Agenda?
6.1 MINUTES - Approve the minutes of the regular meeting of January 21, 2025.
6.2 WARRANTS - Receive and file warrant 33879 to 33943 in the amount of $721,030.99; Receive and file warrant 33944 to 33978 in the amount of $188,525.49.
6.6 FINANCE DIRECTOR
a. Approve the proposed City of Anderson GASB 87 & GASB 96 Accounting Policies. b. Quarterly Treasurer’s Report on City Investments.
END OF CONSENT CALENDAR
6.11 ITEMS (IF ANY) REMOVED FROM THE CONSENT CALENDAR – Items removed from the Consent Agenda for discussion will be treated as Regular Agenda items and any member of the public may request to address the Council on any such item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less.
City Council Meeting
February 4, 2025
PUBLIC HEARINGS
ALL NOTICES WERE GIVEN ACCORDING TO THE LAW.
PUBLIC WORKS
7.0 WASTE WATER TREATMENT PLANT SOLAR PROJECT
RECOMMENDED ACTION:
1. Review the staff report
2. Open the public hearing and consider public testimony
3. Authorize the City Manager to execute an Energy Services Contract with an initial authorization of $30,000 for Due Diligence and Financing RFP services with Schneider Electric.
REGULAR AGENDA
8.0 REGULAR AGENDA – Regular Agenda Items will be discussed individually and in order.
Any member of the public may request to address the Council on an item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less.
CITY MANAGER
8.3a AMENDING THE ANDERSON CITY COUNCIL PROCEDURES
RECOMMENDED ACTION:
1. Discuss the proposed changes to the Anderson City Council Procedures.
2. Provide feedback and additional changes to be incorporated into the document.
8.3b ATTENDANCE AT INTERNATIONAL COUNCIL OF SHOPPING CENTERS (ICSC)
MONTEREY
RECOMMENDED ACTION:
Provide direction on the attendance of ICSC Monterey, March 24-26, 2025
1. Do we want to attend ICSC Monterey March 24-26, 2025?
2. Who should attend? Traditionally this has been the City Manager and two City Councilmembers
City Council Meeting
February 4, 2025
PUBLIC WORKS
8.9a RIVER TRAIL STORM DAMAGE REHABILITATION PROJECT - AUTHORIZATION TO AWARD
RECOMMENDED ACTION:
1. Award the River Trail Storm Damage Rehabilitation Project contract to Tullis Inc. for $494,800.00.
2. After closing the public hearing, authorize the City Manager to execute the contract upon receipt of the required insurance certificates, payment bond, and performance bond.
3. Authorize the Public Works Director to approve change orders not to exceed 20% of the bid amount.
11.0 COUNCIL REPORTS/COMMENTS – City Councilmembers will report on attendance at conferences/meetings reimbursed at City expense (Requirement of Assembly Bill 1234.)
12.0 Public Comment on Closed Session Item(s): Anyone in the audience who wants to address the City Council on a subject which is listed under the Closed Session agenda is now invited to come to the podium. Please provide your name and the subject you wish to discuss. Please limit your remarks to 3 minutes or less.
The City Council will convene to Closed Session.
CLOSED SESSION
C.S.1 CONFERENCE WITH LABOR NEGOTIATORS (54957.6)
* Agency designated representatives: City Manager Joey Forseth-Deshais * Employee organization: Teamsters
The City Council will reconvene to Open Session.
13.0 CLOSED SESSION ANNOUNCEMENT: The Mayor will announce the results of the Closed Session.
14.0 ADJOURN - The City Council will adjourn to February 18, 2025.
ANDERSON CITY COUNCIL MINUTES
Regular Meeting
January 21, 2025
REGULAR SESSION
The regular session was called to order at 6:00 p.m.
ROLL CALL
Councilmembers present: Councilmember Simmons
Councilmember Gallagher Councilmember Hale
Vice-Mayor Gallier
Mayor Baugh
DRAFT
Also present: City Manager Joey Forseth-Deshais, City Attorney Collin Bogener, Police Chief Oliver Collins, Public Works Director Adam Whelen, Finance Director Cindy Wheeler and City Clerk Christy White.
INVOCATION
Doug Deese, Neighborhood Church of Anderson/Cottonwood, gave the invocation.
PLEDGE OF ALLEGIANCE
Vice Mayor Dan Gallier led the Pledge of Allegiance.
STUDENT REPORTS
Taylor from the Teen Center gave updates on current activities.
INTRODUCTIONS
Police Chief Oliver Collins introduced newly promoted Lieutenant Tyler Finch and newly promoted Sergeant Scott Bailey. The City Clerk administered the oath of office and family pinned the new Lieutenant and Sergeant.
Police Chief Oliver Collins introduced newly hired Public Safety Records Clerk Jeana Thomas.
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Carol Perea spoke on the upcoming Sierra Cascade Logging Conference and invited Council to attend.
ITEMU 2/4/2024
City Council Meeting
January 7, 2025
Richard Sanford along with his friend troy spoke to Council asking for help with a code enforcement issue.
CONSENT AGENDA
By motion made, second (Hale/Gallier) and carried by a 5-0 vote, Council took the following action.
Approved the minutes of the regular meeting of January 7, 2025.
Received and filed warrant 33797 to 33843 in the amount of $261,238.52; Received and filed warrant 33844 to 33878 in the amount of $78,943.69; Received and filed ACH in the amount of $55,254.47.
Adopted Resolution No 25-03 to temporarily change parking restrictions in the vicinity of the Shasta District Fairgrounds during the Sierra Cascade Logging Conference, Nor-Cal Boat, Sport, and RV Show, Shasta District Fair, and Anderson Explodes.
AYES:
NOES:
ABSTAIN: ABSENT:
Councilmembers Hale, Gallier, Simmons, Gallagher and Mayor Baugh.
None. None.
None.
ITEMS REMOVED FROM THE CONSENT CALENDAR
Councilmember Simmons requested to pull item 6.10b
LETTER OF SUPPORT FOR SHASTA REGIONAL TRANSPORTATION AGENCY (SRTA) Council discussed the letter and the issues they had with the wording. Councilmember Hale asked that "and supporting state priorities" be deleted from the letter.
By motion made, second (Hale/Gallagher) and carried by a 5-0 vote, Council voted to remove the wording" and supporting state priorities" from the letter of support Vote: AYES:
NOES:
ABSTAIN: ABSENT:
Councilmembers Hale, Gallagher, Simmons, Gallier and Mayor Baugh.
None. None.
None.
REGULAR AGENDA
CITY MANAGER
FOOD TRUCK ORDINANCE DISCUSSION
City Manager Joey Forseth-Deshais gave a staff report and turned the conversation over to Council for discussion.
City Council Meeting
January 7, 2025
Public comments were received from Emily, Donna, Fernando, Penny and Kim, some in support and some against.
Council gave their opinions and options to move toward a food truck ordinance.
Staff took their direction and will work on bringing back information at a future meeting.
CITY COUNCIL
AT HOME SHASTA COMMITTEE
City Manager Joey Forseth-Deshais gave a staff report and turned the discussion over to Council for discussion.
By motion made, second (Gallier/Hale) and carried by a 5-0 vote, Council voted to appoint Councilmember Simmons to the AT HOME SHASTA Committee.
AYES:
NOES:
ABSTAIN: ABSENT:
Councilmembers Gallier, Hale, Simmons, Gallagher and Mayor Baugh.
None. None.
None.
POLICE CHIEF
ALLOCATION AND USE OF ZOGG FIRE SETTLEMENT FUNDS FROM THE ZOGG FIRE SETTLEMENT FOR 2025
City Manager Joey Forseth-Deshais along with Police Chief Oliver Collins gave a staff report and answered questions from Council.
Councilmember Hale asked City Attorney Collin Bogener to look into the possibility of giving funds from the settlement to the City of Igo. Councilmember Hale asked to table the item until Attorney Bogener has time to research this request.
By motion made, second (Hale/Gallagher) and voted 2-3, the motion did not pass.
Vote: AYES: Councilmembers Hale, Gallagher
NOES: Simmons, Gallier, Mayor Baugh.
ABSTAIN: None. ABSENT: None.
By motion made, second (Simmons/Gallier) and carried by a 5-0 vote, Council voted to adopt Resolution No 25-04 allocating the use of the Zogg Fire Settlement funds to the Police Department for arson investigation and prevention.
AYES:
NOES:
ABSTAIN: ABSENT:
Councilmembers Simmons, Gallier, Gallagher and Mayor Baugh.
Hale.
None.
None.
City Council Meeting
January 7, 2025
COUNCIL REPORTS/COMMENTS
Councilmembers used this time to report on meetings and activities they participated in and to announce upcoming events.
Public Comment on Closed Session Items
Jacob Walker spoke on item C.S.3 Jacob asked Council to work with him on his fines. 8: 59 p.m.: The Cifl' Council convened to Closed Session.
CLOSED SESSION
10;07 p,m,; The Cifl' Council reconvened to QJ)en Session.
CLOSED SESSION ANNOUNCEMENT
C.S.1 CONFERENCE WITH LABOR NEGOTIATORS (54957.6)
* Agency designated representatives: City Manager Joey Forseth-Deshais * Employee organization: Teamsters C.S.2 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION(§ 54956.9) * Name of Case: Chao v. County of Shasta, et al., Case No. 2:21-cv-01819-DJC-DMC No reportable action on items C.Sl and C.S.2
C.S.3 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (§ 54956.9) *Name of Case: Walker v. City of Anderson, Case No. 24CVG01720 Pursuant to Government Code section 54957.l(a)(3), the City Council voted 5-0 authorizing settlement of the Walker v City of Anderson matter to be paid over three years and further authorizing the City Attorney to prepare agreement for the City Manager to sign.
ADJOURNMENT
10;07 p.m.: The City Council adjourned to February 4, 2025, Susie Baugh, Mayor
ATTEST:
Christy White, City Clerk
AGENDA ITEM
I February 4. 2025 City Council Meeting
To: Through:
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director /Treasurer
Date: February 4, 2025
!SUBJECT
Receive and File Weekly Warrant Registers.
I RECOMMENDATION
Receive and file warrant 33879 to 33943 in the amount of $721,030.99; Receive and file warrant 33944 to 33978 in the amount of $188,525.49.
I ATTACHMENT
Warrant Registers.
ITEM 6.2 PAGE1 2/4/2025
CHECK REGISTER
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
000083 ACE HARDWARE
SUPPUES-JOB#6 1/17/2025 033879 1,733.76
011765 AGILE OCCUPATIONAL MEDJCINE, P
PROFESSIONAL SERVICES 1/17/2025 033880 195.00
012192 ALHAMBRA
DRINKING WATER 1/17/2025 033881 219.74
000323 AMERICAN FIDELITY ASSURANCE CO
CAFETERIA 125 P/E 1/3/25 1/17/2025 033882 516.40
000585 ASBURY ENVIRONMENTAL SERVICES
PROFESSIONAL SERVICES 1/17/2025 033883 317.80
000615 AT&T CALNET
PHONE CHARGES 1/17/2025 033884 428.41
000700 BADGER METER, INC.
EQUIPMENT 1/17/2025 033885 1,737.60
000945 BEACON FIRE ALARM & SECURITY,
PROFESSIONAL SERVICES 1/17/2025 033886 195.00
000974 BEELER TRACTOR COMPANY
PARTS 1/17/2025 033887 247.40
002967 CALIFORNIA DEPT OF CONSERVATIO
STRONG MOTION FEES 1/17/2025 033888 370.62
001750 CALIFORNIA SAFETY CO.
PROFESSIONAL SERVICES 1/17/2025 033889 1,850.00
001757 CALL CENTER SALES PRO
25 PROFESSIONAL SERVICES 1/17/2025 033890 28.10
001881 CARREL'S OFFICE MACHINES
MONTHLY LEASE 1/17/2025 033891 143.07
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
001957 CBSC
CBSC FEES 1/17/2025 033892 162.00
002047 CHARTER COMMUNICATIONS
INTERNET SERVICES 1/17/2025 033893 2,404.82
002101 CHRIS CHIMENTI
PER DIEM-TRAINING 1/17/2025 033894 36.00
002142 CINTAS FIRST AID & SAFETY
SUPPLIES 1/17/2025 033895 41.33
002165 CITY OF REDDING
TRAFFIC SIGNAL MAINTENANCE 1/17/2025 033896 5,160.00
002165 CITY OF REDDING
LIBRARY CONTRIBUTION 1/17/2025 033897 3,932.18
002199 CLARK PEST CONTROL OF STOCKTON
PROFESSIONAL SERVICES 1/17/2025 033898 706.00
002634 CROWN MOTORS
PROFESSIONAL SVCS & PARTS 1/17/2025 033899 2,486.06
012264 ELEVATOR TECHNOLOGY INC
PROFESSIONAL SERVICES 1/17/2025 033900 990.00
003592 FATOR'S MOTORCYCLES SALES, INC
EQUIPMENT 1/17/2025 033901 8,061.07
003618 FERGUSON WATERWORKS #1423
SUPPLIES 1/17/2025 033902 1,214.79
003816 FRANCISCO & ASSOCIATES, INC.
PROFESSIONAL SERVICES 1/17/2025 033903 3,182.43
012310 FULFULL POWER
FIRE INSPECTION REFUND 1/17/2025 033904 354.00
003927 MIKE GALLAGHER
HEALTH INS. REIMBURSEMENT 1/17/2025 033905 574.00
Page2
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
004099 NICOLE GILL
KEY DEPOSIT REFUND 1/17/2025 033906 10.00
004592 HAVEN HUMANE SOCIETY
PROFESSIONAL SERVICES 1/17/2025 033907 1,073.09
004693 SUSAN JEANNINE HENDRICKSON
PROFESSIONAL SERVICES 1/17/2025 033908 1,350.00
004823 HINDERLITER DE LLAMAS & ASSOC
CONTRACT SERVICES OCT-DEC 24 1/17/2025 033909 300.00
005111 INLAND BUSINESS MACHINES, INC
MONTHLY LEASES & OVERAGE 1/17/2025 033910 2,271.68
005172 J.F. SHEA CONSTRUCTION, INC.
PROFESSIONAL SERVICES 1/17/2025 033911 460,972.74
005445 K & S STAFFING SOLUTIONS, INC.
PROFESSIONAL SERVICES 1/17/2025 033912 5,683.69
005839 LANGUAGE LINE SERVICES
PROFESSIONAL SERVICES 1/17/2025 033913 24.44
006026 LIDDELL CONST. SUPPLY INC.
SUPPLIES 1/17/2025 033914 394.92
006229 L YRO PRINTING
PROFESSIONAL SVCS & SUPPLIES 1/17/2025 033915 2,165.32
006776 MEYER'S POLICE K-9 TRAINING, L
TRAINING-CARPENTER 1/17/2025 033916 1,600.00
011792 MISSIONSQUARE-302204
PLAN #302204 PE 01/03/25 1/17/2025 033917 3,360.00
007118 MUTUAL OF OMAHA
INSURANCE PREMIUM-JAN 25 1/17/2025 033918 2,061.65
007134 N.C.G.T. TRUST FUND
HEALTH INSURANCE PREMIUM 1/17/2025 033919 116,370.00
Page3
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
007435 NTU TECHNOLOGIES, INC.
SUPPLIES 1/17/2025 033920 3,298.12
007618 PACE SUPPLY CORP.
SUPPLIES 1/17/2025 033921 5,812.95
007630 PACIFIC GAS & ELECTRIC
UTILITIES 1/17/2025 033922 2,578.76
007657 PAINT MART
SUPPLIES 1/17/2025 033923 250.10
007669 PAPE MACHINERY
PROFESSIONAL SERVICES 1/17/2025 033924 406.54
007750 PAYLESS BUILDING SUPPLY
MATERIAL 1/17/2025 033925 35.51
007786 PEERLESS BUILDING MAINTENANCE
PROFESSIONAL SERVICES 1/17/2025 033926 780.00
008078 PREMIER TOWING
PROFESSIONAL SERVICES 1/17/2025 033927 175.00
012017 PRESYNCED PRODUCTIONS
PROFESSIONAL SERVICES 1/17/2025 033928 1,055.00
011940 QUICK QUACK CAR WASH
CAR WASHES 1/17/2025 033929 759.60
008855 RTACONSTRUCTION, INC.
PROFESSIONAL SERVICES 1/17/2025 033930 31,012.27
009399 SHASTA CO. PEACE OFFICERS ASSN
2025 RANGE DUES·APD 1/17/2025 033931 6,250.00
012042 SHASTA OFFICIALS
PROFESSIONAL SERVICES 1/17/2025 033932 1,222.00
012311 BONNIE SIMMONS
HEALTH INS. REIMBURSEMENT 1/17/2025 033933 324.28
Page4
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
012016 SISKIYOU OPPORTUNITY CENTER
JANITORIAL SERVICES 1/17/2025 033934 1,871.44
010180 SUNBELT RENTALS, INC.
EQUIPMENT RENTAL 1/17/2025 033935 3,895.68
011972 THE PUN GROUP, LLP
PROFESSIONAL SERVICES 1/17/2025 033936 4,075.00
010732 UPS
SHIPPING FEES 1/17/2025 033937 36.00
010749 US BANK VOYAGER FLEET SYSTEMS
FUEL CHARGES 1/17/2025 033938 14,895.21
010754 US POSTAL SERVICE-CMRS-POC
METER POSTAGE ACCT#7552063 1/17/2025 033939 5,000.00
010756 USA BLUEBOOK
SUPPLIES 1/17/2025 033940 379.40
010881 VESTRA RESOURCES INC.
PROFESSIONAL SERVICES 1/17/2025 033941 1,020.00
011674 WELLS FARGO VENDOR FINANCIALS
MONTHLY LEASE 1/17/2025 033942 357.45
011335 WJLGUS FIRE CONTROL INC.
PROFESSIONAL SERVICES 1/17/2025 033943 615.57
721,030.99
ys(gnature Date
Pages
CHECK REGISTER
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
000017 49ER WATER SERVICES
PROFESSIONAL SERVICES 1/24/2025 033944 6,618.00
000322 AMERICAN FIDELITY ASSURANCE
INSURANCE PREMIUM-JAN 25 1/24/2025 033945 3,019.44
012314 AMERICAN TRUCK AND AUTO BODY S
PROFESSIONAL SERVICES 1/24/2025 033946 6,431.62
000609 AT&T
PHONE CHARGES 1/24/2025 033947 95.67
001133 BIG VALLEY SANITATION
EQUIPMENT RENTAL 1/24/2025 033948 1,381.25
002158 CITY OF ANDERSON
UTILITIES 1/24/2025 033949 2,078.30
002973 DEPT OF JUSTICE
FINGERPRINT APPLICATIONS 1/24/2025 033950 120.00
003063 DIV. OF THE STATE ARCHITECT
SB 1186 FEE-BUSINESS LICENSES 1/24/2025 033951 212.00
003063 DIV. OF THE STATE ARCHITECT
SB 1186 FEE-BUSINESS LICENSES 1/24/2025 033952 48.80
003396 EMERGENCY VEHICLE OUTFITTING C
PROFESSIONAL SVCS & EQUIPMENT 1/24/2025 033953 113.65
003534 EWING
SUPPLIES 1/24/2025 033954 401.81
003590 FASTENERS INC.
SUPPLIES 1/24/2025 033955 723.01
004248 GRAINGER
SUPPLIES 1/24/2025 033956 666.64
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
005889 LAUNDRY WORLD
PROFESSIONAL SERVICES 1/24/2025 033957 2,444.27
011792 MISSIONSQUARE-302204
PLAN #302204 PE 1/17/25 1/24/2025 033958 4,510.00
007075 MUNICIPAL MTNC. EQUIPMENT
SUPPLIES 1/24/2025 033959 2,999.39
012277 NAPA AUTO PARTS
PARTS 1/24/2025 033960 999.01
007202 NCCSIF
WORKERS COMPENSATION INS. 1/24/2025 033961 95,085.00
007493 ODP BUSINESS SOLUTIONS, LLC
OFFICE SUPPLIES 1/24/2025 033962 92.59
007617 PACE ENGINEERING, INC.
PROFESSIONAL SERVICES 1/24/2025 033963 17,744.75
007618 PACE SUPPLY CORP.
EQUIPMENT 1/24/2025 033964 20,296.51
007630 PACIFIC GAS & ELECTRIC
UTILITIES 1/24/2025 033965 56.35
008399 REDDING PRINTING COMPANY.INC
PROFESSIONAL SVCS & SUPPLIES 1/24/2025 033966 257.52
009256 SCP DISTRIBUTORS, LLC
SUPPLIES 1/24/2025 033967 2,671.97
009385 SHASTA CO. ARTS COUNCIL
PROFESSIONAL SERVICES 1/24/2025 033968 100.00
010360 TEXAS LIFE INSURANCE COMPANY
INSURANCE PREMIUM-JAN 25 1/24/2025 033969 820.38
010367 THATCHER COMPANY, INC.
SUPPLIES 1/24/2025 033970 12,360.24
Page2
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
010668 TYLER TECHNOLOGIES, INC.
PROFESSIONAL SERVICES 1/24/2025 033971 5,182.50
1 BIGHAM, APRIL
US REFUND 1/24/2025 033972 13.27
1 HEPLER, RICHARD
US REFUND 1/24/2025 033973 13.27
1 PEERY,GENEA
US REFUND 1/24/2025 033974 3.27
1 HENKE LS & MCCOY INC
US REFUND 1/24/2025 033975 804.56
1 COX,HAROLDEUGENE
US REFUND 1/24/2025 033976 133.91
1 CARVER, KAITLYN
US REFUND 1/24/2025 033977 13.27
1 WHITMORE, HAILEE & J
US REFUND 1/24/2025 033978 13.27
188,525.49
Page3
AGENDA ITEM
February 4, 2025, City Council Meeting
To: Through:
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director
Date: February 4, 2025
I SUBJECT
Approve the proposed City of Anderson GASB 87 & GASB 96 Accounting Policies.
I RECOMMENDATION
The Finance Director recommends that the City Council:
Approve the proposed policy to allow for a more efficient process throughout all departments, notably during the annual financial audit process, when tracking leases and subscriptions while maintaining compliance with internal controls and government code.
I FISCAL IMPACT
While there will be no immediate fiscal impact from this policy, the manpower within the City will be redirected to more fundamental duties with the increased efficiency in the dayto-day operations and time spent during the audit process. This will eventually lead to the cancellation of the lease & subscription tracking software; saving the City $12,000.00 per year.
ITEM 6.6a PAGE1 2/4/2025
I DISCUSSION and BACKGROUND
In June of 2017, the Government Accounting Standards Board (GASB) released Statement No. 87, regarding how leases should be reported on the financial statements. This statement applies to all leases over 12 months with a "right to use" another entity's asset in exchange for a set value. This statement also applies to the City being the lessor.
Compliance with GASB 87 was required as of Fiscal Year 2021/2022.
Likewise, in May of 2020, GASB released Statement No. 96, regarding Subscription-Based Information Technology Arrangements (SBITAs) to be reported similarly to the GASB 87 leases on the financial statements. This statement applies to all IT subscriptions provided to the government entity associated with licensing or "right-to-use" subscriptions with a tangible capital asset. Compliance with this statement was required as of Fiscal Year 2022/2023.
Due to the complexity of these statement requirements and the volume of leases & subscriptions affected, the City entered into a contract with Debt Book; the software created to help local and state governments track their debts and contracts. This debt management program, while proven to be helpful in this practice, comes with an annual cost of $12,000.
By adopting these new policies allowing a materiality threshold amount of $100,000, the City staff will be freed up from tracking so many leases and able to direct time and resources to more significant items. This does not change the transparency efforts of the City as the financials will still reflect leases and subscriptions, but if a contract is entered into that meets this proposed threshold amount, the appropriate GASB statement procedures will be followed.
I ATTACHMENTS
GASB 87 Administrative Policy GASB 96 Administrative Policy ITEM 6.6a PAGE2 2/4/2025
CITY OF ANDERSON
ADMINISTRATIVE POLICY
SUBJECT: LEASE ACCOUNTING POLICY
APPROVED:
NUMBER:
EFFECTIVE DATE: JULY 1, 2024
AUTHORITY: FINANCE DEPARTMENT
SUPERCEDES: ALL PREVIOUSLY WRITTEN GUIDELINES
The purpose of this policy is to establish procedures for tracking lease agreements that the City is a party to, either as a lessee or a lessor, establish materiality thresholds, and provide guidelines for the proper accounting of leases for external financial reporting purposes. The City recognizes lease liabilities with an initial, individual value of $100,000 or more, and/or a lease term of greater than 12 months in the government-wide and proprietary fund financial statements.
Definitions
For purposes of this policy, the following definitions shall apply:
1) Lease. The term "lease" shall mean a contract that conveys control of the right to use one party's nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction.
Examples of nonfinancial assets include buildings, land, vehicles, and equipment.
Right to use includes both the right to obtain the present service capacity and the right to determine the nature and manner of use.
2) Lease term. The term "lease term" shall mean the period during which a lessee has a noncancelable right to use an underlying asset, plus the periods covered by any options to extend the lease term when it is reasonably certain that the option will be exercised.
3) Short-term lease. The term "short-term lease" shall mean a lease that, at the commencement of the lease term, has a maximum possible term of twelve (12) GASB 8 7 Materiality Threshold Policy Page 1 of 5
months or less, including any options to extend, regardless of their probability of being exercised. Month-to-month leases are considered short-term leases. For a lease that can be terminated without cause by either the lessee or the lessor, the maximum possible term is the amount of time either party is required to notify the other party of the cancellation (notice period).
Scope of the Policy
1) Applies to all employees. Unless otherwise stipulated herein, this policy applies to all City employees. All such employees shall comply with the provisions outlined in this policy. It is the responsibility of all supervisors to ensure that the provisions outlined in this policy are enforced for those City employees under their authority.
2) GASB Statement No. 87. Leases shall be accounted in compliance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) Statement No. 87 - Leases.
3) Application to leases. Generally, any lease that grants rights to use an underlying asset that has physical substance, has a maximum possible lease term greater than twelve (12) months, and does not transfer ownership of the underlying asset at the end of the lease term, will be subject to GASB Statement 87 lease accounting and this policy.
4) Title of Lease Not Controlling. If a contract meets the definition of a lease, as defined in this policy, it shall be treated as a lease and will be subject to this policy, regardless of the name or title of the contract. For example, a contract titled "license agreement" will be subject to this policy if it meets the definition of lease, as defined in this policy.
5) Contracts with Non-Lease Components. Some contracts may include both lease and non-lease components. For example, some contracts for the provision of services to the City include equipment as part of the services. In such contracts, the services are the non-lease component and the equipment is the lease component. All contracts that have a lease component are subject to this policy. 6) Effective Date. This policy applies to existing leases in effect as of July 1, 2024, Exemptions from the Scope
In accordance with the GASB 87 Statement, the following are lease types are exempt from this policy:
1) Leases of intangible assets, such as rights to explore for or to exploit natural resources such as oil, gas, minerals, and similar nonregenerative resources; GASB 87 Materiality Threshold Policy Page 2 of 5
licensing contracts for items such as motion picture films, video recordings, plays, manuscripts, patents, and copyrights; and licensing contracts for computer software.
2) Leases of biological assets, such as timber, living plants, and living animals. 3) Leases of inventory, which involve a transfer of ownership rather than a lease. 4) Contracts that meet the definition of a service concession arrangement pursuant to paragraph 4 of GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements.
5) Leases in which the underlying asset is financed with outstanding conduit debt unless both the underlying asset and the conduit debt are reported by the lessor. 6) Supply contracts (e.g., power purchase agreements).
7) Certain leases subject to external laws, regulations, or legal rulings, such as aviation leases between airports and airlines, and other leases with similar characteristics.
8) Nonexchange transactions where the right to use an underlying asset is transferred in exchange for a nominal amount, such as one dollar per year.
These type of non-exchange transaction leases are covered by GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions. 9) A contract that: (i) transfers ownership of the underlying asset to the lessee by the end of the contract term; and (ii) does not contain a termination option (but may contain a fiscal funding or cancellation clause that is not reasonably certain of being exercised). For these types of financed purchase contracts, the City, as a lessee, will record the purchased asset and the related debt ( a financed purchase liability); and the City, as a lessor, will record the sale of the asset.
Accounting and Reports
1) Materiality Threshold. The following materiality thresholds apply when determining whether to capitalize a lease:
a) As a lessee, the City will recognize a lease liability and a corresponding intangible asset representing the lessee's "right to use" the asset, if the present value of the lease payments expected to be made during the lease term (less any lease incentives) is a minimum of $100,000. b) As a lessor, the City will recognize a lease receivable and a corresponding deferred inflow of resources at the commencement of the lease term, if the GASB 87 Materiality Threshold Policy Page 3 of 5
present value of the lease payments expected to be received during the lease term (less any lease incentives) is a minimum of $100,000. c) Leases not meeting the above materiality threshold may be capitalized if the exclusion of such leases might otherwise cause the financial statement to be incomplete or misleading.
2) Accounting Treatment. For leases subject to this policy:
a) The City, as a lessee, in conjunction with reporting the asset and liability, will also report the amortization expense of the intangible asset over the life of the asset or the lease term, whichever is shorter. In addition, the City will report interest expense on the lease liability and provide footnote disclosures about the lease.
b) The City, as a lessor, in addition to recognizing a lease receivable and a corresponding deferred inflow of resources, will recognize interest income associated with the receivable using an effective interest method. Lease revenue will arise from amortizing the deferred inflow of resources systematically and rationally over the lease term.
3) Operating Lease. Short-term leases and other leases that do not meet the materiality threshold set forth in this policy will be recorded as operating leases. The City will report payments (as a lessee) as outflows of resources (expense/expenditure); and report lease payments received (as a lessor) as inflows of resources (revenue), respectively, based on the payment provisions of the lease.
4) Reassessment of the Lease Term. The City shall reassess the lease term only if one or more of the following occur:
a) The City elects to exercise an option even though it was previously determined that it was reasonably certain that the option would not be exercised.
b) The City elects not to exercise an option even though it was previously determined that it was reasonably certain that the option would be exercised.
c) An event specified in the lease that requires an extension or termination of the lease takes place.
*Reassessment of the lease term may result in an adjustment of lease asset/liability and future amortization.
GASB 87 Materiality Threshold Policy Page4 of5
5) Lease Amendments
a) A lease amendment or modification that adds one or more underlying assets that were not included in the original lease should be accounted for as a separate lease.
b) A lease amendment or modification that does not qualify as a separate lease pursuant to this policy should be accounted for by remeasuring the lease liability and adjusting the related lease asset if the City is a lessee or remeasuring the lease receivable and adjusting the related deferred inflows of resources if the City is a lessor.
c) The City, as a lessor, in addition to recognizing a lease receivable and a corresponding deferred inflow of resources, will recognize interest income associated with the receivable using an effective interest method. Lease revenue will arise from amortizing the deferred inflow of resources in a systematic and rational manner over the lease term. 6) Lease Termination. A lease amendment or modification that results in a decrease of the lessee's right to use the underlying asset shall be considered to be a full or partial termination.
a) As a lessee, the City will reduce the carrying values of the lease liability and related asset, and recognize a gain or loss for the difference. b) As a lessor, the City will reduce the carrying values of the lease receivable and related deferred inflow of resources, and recognize a gain or loss for the difference.
References:
Statement No. 87 of the Government Accounting Standards Board. (2017, July).
GASB 87 Materiality Threshold Policy Page 5 of 5
CITY OF ANDERSON
ADMINISTRATIVE POLICY
SUBJECT: SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs) ACCOUNTING POLICY APPROVED:
NUMBER:
EFFECTIVE DATE: JULY 1, 2024
AUTHORITY: FINANCE DEPARTMENT
SUPERCEDES: ALL PREVIOUSLY WRITTEN GUIDELINES
The purpose of this Policy is to establish procedures for tracking the City's SBITA contracts, establish materiality thresholds, provide guidelines for the GASB 96 compliance, and proper accounting of SBITAs for external financial reporting purposes.
The City recognizes subscription liabilities with an initial, individual value of $100,000 or more with a subscription term greater than 12 months in the government-wide and proprietary fund financial statements.
Definitions
For purposes of this policy, the following definitions apply:
1) Subscription-based information technology arrangement (SBITA). A SBITA is a contract that conveys control of the right to use another party's (a SBITA vendor's) IT software, alone or in combination with tangible capital assets (with underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. 2) Subscription term. The subscription term is defined as the period during which the City has a non-cancellable right to use an underlying IT asset, plus the following periods, if applicable:
a) Periods covered by the City's option to extend the SBITA when reasonably certain the City will exercise this option.
GASB 96 Mateliality Threshold Policy Page 1 of7
b) Periods covered by the City's option to terminate the SBITA when reasonably certain the City will not exercise this option. c) Periods covered by the SBITA vendor's option to extend the SBITA when reasonably certain the SBITA vendor will exercise this option.
d) Periods covered by the SBITA vendor's option to terminate the SBITA when reasonably certain the SBIT A vendor will not exercise this option.
Periods, where both the City and the SBITA vendor have the option to terminate the SBITA without permission from the other party ( or if both parties have to agree to extend), are cancelable periods and are excluded from the subscription term.
3) Short-term SBITA. A short-term SBITA is a SBITA that, at the commencement of the subscription term, has a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. For a SBITA that is cancellable by either the City or the SBITA vendor, the maximum possible term is the amount of time either party is required to notify the other party of the cancellation (notice period).
For short-term SBJTAs, the City should recognize expenditure/expense on subscription payments made.
Scope of the Policy
1) Applies to All Employees. Unless otherwise stipulated herein, this policy applies to all City employees. All such employees shall comply with the provisions outlined in this policy. It is the responsibility of all supervisors to ensure that the provisions outlined in this policy are enforced for those City employees under their authority.
2) GASB Statement No. 96. SBITAs shall be accounted in compliance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) Statement No. 96 - SubscriptionBased Information Technology Arrangements. 3) Application to SBITAs. Generally, any SBIT A that conveys control of the rights to use a SBITA vendor's IT software, alone or in combination with tangible capital assets, has a maximum possible subscription term greater than twelve (12) months, will be subject to GASB Statement 96 SBJTAs and this policy.
GASB 96 Materiality Threshold Pohcy Page 2 of7
4) Contracts with Multiple Components. If a SBITA contract contains multiple components such as both a subscription component and a nonsubscription component, or multiple underlying hardware or software components, the City accounts for each component as a separate SBITA component and allocates the contract price to the different components. If it is not practicable to determine the best estimate for price allocation for some of all components in the contract, the City accounts for those components as a single SBITA unit. All contracts that have a SBITA component are subject to this policy.
5) Effective Date. This policy applies to existing SB IT As in effect as of July 1, 2024, and new SBITAs or SBITA amendments entered into on or after July 1, 2024.
Exemptions from the Scope
In accordance with the GASB 96 Statement, the following lease types are exempt from this policy:
1) Contracts that convey control of the right to use another entity's combination of IT software and tangible capital assets that meet the definition of a lease in GASB Statement No. 87 (GASB 87), in which the software component is insignificant when compared to the cost of the underlying asset. Refer to Administrative Policy 01200.607 Lease Accounting Policy for additional guidance on recording GASB 87 Leases. 2) Arrangements that the City provides the right to use an IT software to other entities through SBITAs as a passthrough and therefore not the end user. 3) Contracts that meet the definition of Public-Private and Public-Public Partnerships in GASB Statement No. 94.
4) Licensing arrangements that provide a perpetual license subject to GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets.
5) Contracts that only provide IT support services.
Accounting and Reports
GASB 96 Materiality Threshold Policy Page 3 of 7
1) Materiality Threshold. The following materiality thresholds apply when determining whether to capitalize a SBITA
a) As a SBITA end user, the City will recognize a subscription liability and a corresponding intangible asset representing the City's "right to use" the underlying SBITA asset, if the present value of the subscription payments expected to be made during the subscription term (less any subscription incentives) is a minimum of $100,000.
b) As a SBITA vendor, the City will recognize a subscription receivable and a corresponding deferred inflow of resources at the commencement of the subscription term, if the present value of the subscription payments are expected to be received during the subscription term (less any lease incentives) is a minimum of $100,000.
c) SBITAs not meeting the above materiality threshold may be capitalized if exclusion of such SB IT As might otherwise cause the financial statement to be incomplete or misleading.
2) Accounting Treatment. For SBITAs that have terms of 12 months or more are subject to the thresholds in this policy:
a) The City, as a SBITA end user, in conjunction with reporting the subscription liability and intangible asset representing the City's right to use the subscription asset at the commencement of the subscription term, will also report amortization expense of the intangible asset over the life of the asset or the subscription term, whichever is shorter. In addition, the City will report interest expense on the subscription liability and provide footnote disclosures about the SBIT A. b) The City, as a SBITA vendor, in addition to recognizing a subscription receivable and a corresponding deferred inflow of resources, will recognize interest income associated with the receivable using effective interest method. Subscription revenue will arise from amortizing the deferred inflow ofresources in a systematic and rational manner over the subscription term.
c) The City should measure its subscription liability or receivable as the present value of all payments expected to be made or received during the subscription term.
d) The subscription asset should be measured at the amount of the initial measurement of the subscription liability, plus any payments made to the SBITA vendor at the commencement of the subscription term and any capitalizable initial implementation costs.
GASB 96 Materiality Threshold Policy Page 4 of7
e) Payments made before the commencement of the subscription term to the SBITA vendor, payments made for the capitalizable initial implementation and costs before the commencement of the subscription term, reduced by any incentives received should be reported as a prepayment. The prepayment should be reclassified as an addition to the subscription asset's initial measurement at term commencement. f) Variable payments based on future performance of the City, usage of the underlying IT assets, or number of user seats should be expensed as incurred, and not included in the measurement of the subscription liability.
g) Activities associated with a SBIT A, other than making subscription payments, are grouped into the following stages and their costs are accounted for accordingly:
" subscription asset at commencement of the subscription term, will also report amortization expense of the intangible asset over the life of the asset or the subscription term, whichever is shorter. In addition, the City will report interest expense on the subscription liability and provide footnote disclosures about the SBITA" (Governmantal Accounting Standards Board of the Finance Accounting Foundation, 2020).
h) The City's financial statement footnote disclosures about SBITAs should include the following:
a. General description of the SBITA, including the basis, terms, and conditions on which variable payments not included in the measurement of the subscription liability are determined. b. Total amount of subscription assets and the related accumulated amortization, disclosed separately from other capital assets. c. Amount of outflows of resources recognized in the reporting period for variable payments not previously included in the measurement of the subscription liability.
d. Amount of outflows of resources recognized in the reporting period for other payments, such as termination penalties, not previously included in the measurement of the subscription liability.
e. Principal and interest requirements to maturity, presented separately, for the subscription liability for each of the five subsequent fiscal years and in five-year increments thereafter.
GASB 96 Materiality Threshold Policy Page 5 of7
f. Commitments under SB IT As before the commencement of the subscription term.
g. Components of any loss associated with an impairment, and any significant related changes in the subscription liability. 3) Contract Combinations. Contracts finalized at or near the same time with the same SBITA vendor should be considered part of the same contract if either of the following criteria is met:
a) The contracts are negotiated as a package with a single objective. b) The amount of consideration to be paid on one contract depends on the price or performance of the other contract.
4) Reassessment of the Subscription Term. The City shall reassess the subscription term only if one or more of the following occur:
a) The City or SBITA vendor elects to exercise an option even though it was previously determined that it was reasonably certain that the option would not be exercised.
b) TheCityorSBITAvendorelectsnot to exercise an option even though it was previously determined that it was reasonably certain that the option would be exercised.
c) An event specified in the SBITA contract that requires an extension or termination of the lease takes place.
*Reassessment of the SBITA contract term may result in an adjustment of lease asset/subscription liability and future amortization. 5) SBITA Amendments
a) A SBITA amendment resulting in a modification should be accounted for as a separate SBITA if it adds one or more underlying IT assets that were not included in the original SBITA contract; and the increase in subscription payments for the additional subscription asset does not appear to be unreasonable.
b) An amendment that does not qualify as a separate SBITA pursuant to this policy should be accounted for by remeasuring the subscription liability and adjusting the related intangible asset if the City is an end user; or remeasuring the subscription receivable and adjusting the related deferred inflows of resources if the City is a SBITA vendor. 6) SBITA Termination. A SBITA amendment or modification that results in a GASB 96 Materiality Threshold Policy Page 6 of7
decrease of the lessee's right to use the underlying asset shall be considered to be a full or partial termination.
a) As a SBITA end user, the City will reduce the carrying values of the subscription liability and related asset, and recognize a gain or loss for the difference.
b) As a SBIT A vendor, the City will reduce the carrying values of the subscription receivable and related deferred inflow of resources, and recognize a gain or loss for the difference.
References:
Statement No. 96 of the Government Accounting Standards Board. (2020, May).
GASB 96 Materiality Threshold Policy Page 7 of7
AGENDA ITEM
!February 4, 2025, City Council Meeting
for Submittal By:
To Be Presented By:
Cindy Wheeler, Finance Director/ Treasurer
To:
Through:
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From:
Date:
lsuBJECT
Cindy Wheeler, Finance Director /Treasurer
February 4, 2025
Quarterly Treasurer's Report on City Investments
I RECOMMENDATION
The Finance Director recommends that the City Council:
Receive and file the quarterly treasurer's report for the fiscal quarter ended September 30, 2024
I FISCAL IMPACT
This action has no direct fiscal impact. The report is for information purposes only.
I DISCUSSION and BACKGROUND
State law requires the City Treasurer to report every fiscal quarter to the City Council about the city's investments. The attached report includes complete information about the city treasury and certifies that the city's investments are in accordance with state law and the Council's adopted investment policy.
I ATTACHMENTS
Quarterly Treasurer's Report and Certification for the fiscal quarter ended September 30, 2024.
ITEM 6.6b PAGE1 2/4/2025
City of Anderson
Quarterly Certification of Compliance with Investment Policy Quarter Ended September 30, 2024
A. Section 8.1 of the City's Investment Policy restricts the amount of pooled funds which may be invested in certain types of investments. These types of investments and a statement of compliance are below.
Investment T~ Maximum investment Current Investment Percent of Total Below Maximum? Banker's Acceptances 15% of Total Portfolio $0 0.00% Yes Certificates of Deposit 30% of Total Portfolio $0 0.00% Yes Prime Commercial Paper 15% of Total Portfolio $0 0.00% Yes Medium-term Corporate Notes 15% of Total Portfolio $0 0.00% Yes B. Section 13.1 of the City's Investment Policy restricts the overall maturities of pooled investments. These restrictions and a statement of compliance are below.
Maturity
Within One Year
Investment Restriction
50% of Total - Minimum
Between Three and Five Years 25% of Total - Maximum
Over Five Years None Allowed
Current Investment
$4,207,928
$0
$0
Percent of Iotal
100.00%
0.00%
0.00%
Limit Met?
Yes
Yes
Yes
C. Section 13.1 of the City's Investment Policy provides that the average investment maturity must be less than three years.
Weighted Average Days to Maturity of Treasurer's Pool:
Restriction Met?: Yes
I hereby certify that as of September 30, 2024 the investment of the City of Anderson comply in all respects with the requirements of the California Government Code and the City's current Investment Policy and that there is sufficient cash flow_Jrcover the next six months expenditures.
Certified by:
Attachment 1
City of Anderson
Quarterly Report on the Treasurer's Investment Pool
Quarter Ended September 30, 2024
Days to
Checking and Passbook accounts
Primary Checking
Issuer Yield to Maturity Rate Maturity Par Value Book Value Payroll Checking
Checking - City Events
Passbook Savings
REDIP Reserve Acct
Money Market
Subtotal
Certificates of Deposit
Local Agency Investment Fund
Local Agency Investment Fund
Petty Cash
Petty Cash
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
na
na
Total Funds Held by the City of Anderson on September 30,2024 Total Funds Held by the City of Anderson on June 30,2024 Weighted Average Yields
Weighted Average Days to Maturity
Percent Maturing within One Year
Percent Maturing between One and Three Years
Percent Maturing between Three and Five Years
na na
na na
na na
na 0.01%
na 0.01%
na 0.40%
na 4.557%
na na
1.782%
na
na
na
na
na
na
1 na
1 100.00%
o.oo•~ 0,00%
2,260,605
1,000
235
33,287
21,193
267,172
2,583,492
0 1,621,586
2,850
4,207,928
7,809,845
(3,601,917)
1,791,082
1,000
235
33,287
21,193
267,172
2,113,969
0 1,621,586
2,850
3,738,405
7,809,813
(4,071 ,408)
Percent of
Credit Rating Total
Market Value (Notes) Investments
1,791,082 na
1,000 na
235 na
33,287 na
21,193 na
267,172 na
2,113,969 56.55%
0 0.00%
1,621,586 na 43.38%
2,850 na 0076%
3,738,405 100.0%
7,809,813
(4,071.408)
City of Anderson
Quarterly Report on Funds Held Outside the Treasurer's Pool Quarter Ended September 30, 2024
Issuer Yield to Maturil_l Rate
Superior California Economic Development District
Checking Account Cornerstone Community Bank na 0.00%
Amerinational Community Services Group na na
Funds Held by Trustee (US Bank} for Redevelopment Agency (2005} Retired Funds Held by Trustee (US Bank) for Redevelopment Agency (2008) Retired Funds Held by Trustee (US Bank) for Redevelopment Agency (2015} 4.90% na Funds Held by Trustee (Union Bank) for Wastewater Bonds 0.00% na Misssion Square Retirement (Formerly ICMA Retirement)
Employee Directed Investments na na
Total Funds Held by the City of Anderson Outside the Treasurer's Investment Pool on September 30, 2024 Total Funds Held by the City of Anderson Outside the Treasurer's Investment Pool on June 30, 2024 Difference
Maturit_l Date
na
na
na
na
na
Par Value
0 0
0 0
489,387
2,339,104
2,828,491
2,705,902
122,589
Book Value
0 0
0 0
489,387
2,339,104
2,828,491
2,705,902
122,589
Market Value
0 0
0 0
489,387
2,339,104
2,828,491
2,705,902
122,589
AGENDA ITEM
!February 4, 2025, City Council MeetinJd
Adam Whelen, Public Works Director
To: Through:
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Adam Whelen, Public Works Director
Date: February 04, 2025
I SUBJECT
Waste Water Treatment Plant Solar Project
I RECOMMENDATION
The Public Works Director recommends that the City Council:
1. Review the staff report
2. Open the public hearing and consider public testimony
3. After closing the public hearing, authorize the City Manager to execute an Energy Services Contract with an initial authorization of $30,000 for Due Diligence and Financing RFP services with Schneider Electric.
I FISCAL IMPACT
The due diligence phase of this project is not to exceed $30,000, which will be funded by the Waste Water Treatment Capital Improvement Fund. Funding for the entire project will be funded through a loan with the financing firm of the City's choosing.
I DISCUSSION and BACKGROUND
ITEM 7.0 PAGE1 2/04/2025
The City of Anderson has long sought solutions to lower utility costs at the Wastewater Treatment Plant. Pacific Gas & Electric (PG&E) has significantly increased its costs in the last 10 years, straining the operating budget. Additionally, the California Public Utilities Commission has changed the incentive structure associated with solar Net-Energy Metering (NEM 3.0). This change reduces the value of solar by 50-70%. Fortunately, the City of Anderson got a preliminary solar project "grandfathered" under NEM 2.0, preserving the full value of solar generation if the proposed solar project is completed by April 2026.
To ensure the NEM 2.0 timeline can be met, and savings realized, the City of Anderson seeks to enter an Energy Services Contract with Schneider Electric Building Americas, Inc. to implement a solar PY project at the City's Wastewater Treatment Plant. The project will be located at 3701 Rupert Rd, Anderson, CA 96007. This contract includes full turnkey services such as due diligence, design, funding support, construction, and guaranteed savings aimed at improving energy efficiency and lowering operating costs. The project is structured under the California Government Code § 4217.10 et seq., which allows municipalities to engage in energy conservation projects when it is in the best interest of the Public Agency.
The project will be divided into two phases. The Due Diligence phase will review ground conditions to ensure structural steel is appropriately designed. Potential long-lead time items will be identified and proposals created, allowing the City to procure needed materials ahead of schedule and ensure strict project timelines can be met. Lastly, the Due Diligence phase will include the City working with Schneider Electric to create a financing RFP to secure all needed project funding. The City will have the opportunity to choose the best financing terms for them.
This Due Diligence phase will cost $30,000.
The next phase (Turnkey Construction) will finalize the design of the desired project scope of work and lock in the fixed-firm (no-change order) construction project fee. The final scope, schedule, guaranteed savings amount, and fee will be presented to the City Manager and Public Works Director for review and approval. The project will not move forward into the Turnkey Construction Phase unless the City Manager approves.
Schneider Electric Building Americas, Inc. was selected for its experience and qualifications in providing turnkey energy solutions, which include the design and construction of energy-efficient improvements and support with obtaining Federal Incentives for Public Agencies. Schneider Electric is also a leader in California solar projects for Public Agencies and offers a robust savings guarantee.
Additionally, approving this agreement with Schneider Electric gives the City the best chance to meet the PG&E April 2026 NEM 2.0 implementation deadline and realize long-term savings. !ATTACHMENT
1. Presentation Slides 2. Agreement
ITEM 7.0 PAGE2 2/04/2025
Program Leader
Schneider Electric - Public Sector
Global Company- Local
Presence
• Over 1,000 completed Energy
Conservation projects, worth
more than $4B
• Awarded World's Most Ethical
Company Honorees
consecutively from 2011 -
2023.
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• Fixed-Firm Price with No
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Prioritized Solar Development Team
• National Resources
• Experienced Team Leaders
• New Design and Procurement Strategies
• Faster Installation Times
• Over 30 CA Public Sector Large Solar
Projects Completed in Last 5 years
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Schneider Electric developed an energy savings
performance contract, investing $7 million into the
Moraga School District
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Expedite your CIP with Innovative
Funding Solutions
• Priority for City
• Rising PG&E Utility Costs - 13% last
year alone
• Changes to Net Energy Metering (NEM)
■ Grandfathered on NEM 2.0
• Must Receive Permission to Operate by
April 2026
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LA County Sanitation is a huge organization and serves
5.6M people in Los Angeles County. Due to an increasing backlog of projects, LACSD chose the ESCO delivery
model as an expedited path to construction.
Future Electricity Costs
Impact by Not Doing Solar
Continued Usage and Rising Costs
Current Annual Costs
"'$370k
Current Energy Component
"'55%
Current Demand & Fixed Fee Component
"'45%
Annual Projected Increase for PG&E
7%
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Project Solution
Wastewater Treatment Plant Project
Offset Entire Electricity Usage
• Solar PV Ground Mounted Array
■ Option for LED Lighting Upgrades
■ Rate Analysis
• ~100% offset of Two Main Meters
• Cost Effective
■ Turnkey Completion
• Low Interest Loan and Federal
Incentives
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Schneider Electric developed and installed a 7 MW
Microgrid project at Marine Corps Air Station Miramar in CA to specifically reduce utility demand charges and
participate in demand response programs in California.
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Contracting Next Steps
• Not to Exceed Amount
• Three Notices to Proceed
• Due Diligence Engineering &
Financing
• Long-Lead Time Material
Procurement
• Turnkey Completion
• Finalize Price, Scope, Schedule and
Guaranteed Savings Presented to City
Admin Before Approval - 2 Months
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Project Funding
Leverage Incentives
Not to Exceed Price Local & Federal Funding Opportunities "'$3. 79M
Projected Savings
"'$181k
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30-year Gross Lifecycle
COLLABORATIVE MARKET MAXIMIZE EVERY DESIGN WITH
Investment Tax Credit Direct Pay APPROACH KNOWLEDGE DOLLAR FUNDING IN MIND "'$1.2M
Solar PV Federal Incent ive
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Solar Project Assumptions
First Year Energy Savings
Estimated Solar Inverter Replacement Cost
Utility Rate Escalation
Solar Degradation
Utility Net -Energy Metering (NEM) Pro_g_ram
Estimated Project Cost
Schneider Project (Not to Exceed)
ITC Direct Pay Reimbursement
Interest Estimate
Number of Years
Assumed Finance Terms
Annual Financed Amount
Estimated Lifecycle Net Savings
30 Year Cost Avoidance
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$
$
181,000
60,000
7.00%
0.5%
PG&E NEM 2.0
$
$
$
$
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1,138,500
4.50%
20 291,745
9,216,157
1 $291,74S
2 $291,745
3 $291,745
4 $291,745
5 $291,745
6 $291,745
7 $291,745
8 $291,745
9 $291,745
10 $291,745
11 $291,745
12 $291,745
13 $291,745
14 $291,745
15 $291,745
16 $291,745
17 $291,745
18 $291,745
19 $291,745
20 $291,745
21 22
23 - 24
25 ~
26 27
28 29 <
30 30 Year Totals
Project Savings
ITC Direct Pay Total Annual Cumulative er Energy Sav,ngs Reimbursement Savings Cash Flow
nt
- .r--- - $181,000 $1,138,500 $1,319,500 $1,027,755
$192,765 $192,765 $928,77S
$205,295 $205,295 $842,325
$218,639 $218,639 $769,219
$232,850 $232,850 $710,324
$247,986 $247,986 $666,565 ~ $264,105 $264,105 $638,925 - $281,272 $281,272 $628,451
$299,554 $299,554 $636,261
$319,025 $319,025 $663,541 .. $339,762 $339,762 $711,558 ~ $361,846 $361,846 $781,659
$385,366 $385,366 $875,281
$410,415 $410,415 $993,951
$437,092 $437,092 $1,139,298
$465,503 $465,503 $1,313,056
$495,761 $495,761 $1,517,072
$527,985 $527,985 $1,753,313
$562,304 $562,304 $2,023,872
$60,000 $598,854 $598,854 $2,330,982
~ $510,224 $510,224 $2,841,205
$543,388 $543,388 $3,384,594
1.. $578,709 $578,709 $3,963,302
$616,325 $616,325 $4,579,627
$656,386 $656,386 $5,236,013
$699,051 $699,051 $5,935,064
$744,489 $744,489 $6,679,553
- $792,881 $792,881 $7,472,434
$844,418 $844,418 $8,316,852
} $899,305 $899,305 $_?,~6,157
Next Steps
Best Approach to Meeting Deadline
City Council Approval
Review proposed project and
authorize Administration to
start project
February 4th, 2025
Long Lead Time
Procurement
Place order for longest materiaf
deliveries
February 2025
Construction Start
Mobilization for total
project
Spring 2025
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Due Diligence NTP
Begin site investigations, engineering
of electrical and structural components
and issue financing RFP
February 4th, 2025
Finalize Project
Finalize scope, price,
schedule and guarantee
savings. Order remaining
material
March 2025
1--'l''l
Target Project
Completion
Request PTO in Advance of NEM
2.0 Deadline
Late Fa II 2025
ENERGY SERVICE CONTRACT1
This Energy Services Contract(" Agreemenf') is made effective as of January 21 st, 2025 ("Effective Date") by and between the City of Anderson, a California Municipality ("Customer'), and Schneider Electric Buildings Americas, Inc., a Delaware corporation with California Contractors License Number 708952 ("ESCO""). Customer and ESCO may be referred to herein as the "Parties", collectively, and each, individually, as a "Party".
RECITALS
WHEREAS, ESCO is a full-service energy service contractor with the qualifications and technical capabilities to provide the design and construction services described herein; WHEREAS, Customer wishes to engage ESCO, pursuant to the terms and conditions of this Agreement, to design and construct a Project (defined below) for purposes of implementing certain "energy conservation facilities·, as such term is used and defined in California Government Code Section 4217.10 et seq.; WHEREAS, this Agreement (including any Long-Lead Time Material Procurement Notice to Proceed and the Construction Notice to Proceed, when executed) will constitute an "energy service contract" within the meaning of California Government Code Section 4217.10 et seq.;
WHEREAS, California Government Code Section 4217.10 et seq. (i) authorizes public agencies to enter into energy service contracts that satisfy the requirements of California Government Code Section 4217.12, (ii) allows public agencies to award such energy service contracts on the basis of the experience of the contractor, the type of technology employed by the contractor, the cost to the public agency, and any other relevant considerations, and (iii) expressly provides public agencies with the greatest possible flexibility in structuring such energy service contracts so that economic benefits may be maximized and financing and other costs associated with the design and construction of alternate energy projects may be minimized; WHEREAS, having considered the foregoing, Customer's Governing Body has determined that ESCO has the technical and management capabilities and experience to perform the Due Diligence Work (defined below) in accordance with the scope of work and for the facilities set forth in Exhibit A, and to deliver a Project Proposal, , identifying energy improvements and operational changes (collectively, "ECMs") to be installed or implemented at the Customer's facilities, and including a pro forma analysis showing that the anticipated cost to Customer to implement the identified ECMs will be less than the anticipated cost to Customer for thermal, electrical, and other energy, together with anticipated operational, maintenance and other costs, that would have been consumed by Customer in the absence of the identified ECMs; and WHEREAS, if the Project Proposal is presented, on an arms' length basis, to personnel of Customer with requisite technical training and experience, for those personnel to make judgments and determinations as to the desirability of the Project Proposal, and if the Project Proposal is deemed satisfactory by the Customer, it is the intent of the Customer to work with ESCO to negotiate and approve a Construction Notice to Proceed hereto in the manner provided in California Government Code §4217.10 et seq. in order to implement the ECMs developed by ESCO.
NOW, THEREFORE, in consideration of the foregoing and of the respective rights and obligations of the Parties set forth herein, the Parties hereby agree as follows:
ARTICLE0
DEFINITIONS
0.1. "Applicable Law" shall mean any applicable federal, California state or local law, constitution, treaty, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement lawfully enacted, adopted, promulgated or applied by a Governmental Authority.
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1 Energy Service Contract
0.2. "Change Order' shall mean a written modification to the Agreement and/or any Contract Document, duly executed by Customer and ESCO, authorizing a change in the scope of the Work, the time for completion of any Work, and/or the compensation payable to ESCO in consideration for performance of any Work hereunder.
0.3. "Construction Notice to Proceed" shall mean a Notice to Proceed with the Construction Phase, together with all exhibits, schedules, and/or documents attached thereto and/or expressly incorporated by reference therein,. Effective as of the Construction Notice to Proceed Effective Date, the Construction Amendment (inclusive of all exhibits, schedules, and/or documents attached thereto and/or expressly incorporated by reference therein) shall become part of this Agreement and shall modify and supersede any conflicting provisions hereof.
0.4. "Construction Notice to Proceed Effective Date" shall mean the date on which the Construction Notice to Proceed is duly executed by both Parties.
0.5. "Construction Phase" shall mean the portion of the Project commencing as of the Construction Notice to Proceed Effective Date and concluding upon final completion of the Project.
0.6. "Construction Schedule" shall mean the Preliminary Construction Schedule attached to the Construction Notice to Proceed , as updated and/or modified from time to time in accordance with this Agreement.
0. 7. "Construction Work" shall mean all labor, equipment, materials and goods necessary to complete the Scope of Construction Work set forth inthe Construction Notice to Proceed.
0.8. "Contract Documents" shall mean, collectively, this Agreement and all Notices to Proceed, schedules, exhibits, and/or documents attached hereto and/or expressly incorporated by reference herein, each as the same may be amended, modified or supplemented from time to time in accordance with the terms and conditions of this Agreement. Without limiting the generality of the foregoing, the following Exhibits are hereby expressly incorporated by reference into the Agreement, subject to the terms and conditions hereof:
a. Exhibits to the Agreement:
I. Exhibit A: Due Diligence Work Notice to Proceed
ii. Exhibit B: Preliminary Due Diligence Schedule
iii. Exhibit C: Due Diligence Fee
0.9. "Customer" shall have the meaning set forth in the introductory paragraph to this Agreement.
Customer may occasionally be referred to as "Customer" in the Contract Documents.
0.10. "Due Diligence Phase" shall mean the portion of the Project commencing as of the Effective Date of this Agreement and concluding immediately prior to the Construction Notice to Proceed Effective Date.
0.11. "Due Diligence Work" shall mean all labor, equipment, materials and goods necessary to complete the Due Diligence Work set forth in Exhibit A to this Agreement.
0.12. "ECM' has the meaning set forth in the introductory paragraph to this Agreement. 0.13. "ESCO" shall have the meaning set forth in the introductory paragraph to this Agreement. ESCO may occasionally be referred to as "ESCO" in the Contract Documents.
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2 Energy Service Contract
0.14. "Facilities" shall mean Customer facilities identified in Exhibit A, and any additional facilities added by written agreement of the Parties.
0.15. "Governing Body" means the governing board or other governing body of the Customer. 0.16. "Governmental Authority" shall mean any nation, government, state or political subdivision thereof, and any entity lawfully exercising executive, legislative, judicial, regulatory or administrative powers on behalf of any of the foregoing.
0.17. "Hazardous Substance" means (i) any hazardous, toxic, or dangerous wastes, substances, chemicals, constituents, contaminants, pollutants, and materials and any other carcinogenic, liquids, corrosive. ignitable, radioactive, reactive, toxic, or otherwise hazardous substances or mixtures (whether solids, liquids, gases) now or at any time subject to regulation, control, remediation, or otherwise addressed under Applicable Laws; (ii) any "hazardous substance• as defined by the Resource, Conservation and Recovery Act of 1976 (42 U.S.C. §6901 et seq.), as amended, and regulations promulgated thereunder; (iii) any "hazardous, toxic or dangerous waste, substance or material" specifically defined as such in 42 U.S.C. §9601 et seq., as amended and regulations promulgated thereunder; and (iv) any hazardous, toxic or dangerous waste, substance, or material as defined in any so-called "superfund" or "superlien" law.
0.18. "Long-Lead Time Material Procurement Phase" means the portion of the Project commencing as of the effective date of the issuance of the Long-Lead Time Material Procurement Notice to Proceed and concluding immediately prior to the Construction Phase Notice to Proceed Effective Date
0.19. "Long-Lead Time Material Procurement Work" shall mean scope, value and schedule set forth in each Long-Lead Time Material Procurement Notice to Proceed.
0.20. "Notice To Proceed" (NTP) means a written notice issued by the Customer authorizing ESCO to proceed with commencement of the Due Diligence Work, Long Lead Time Material Procurement Work and/or the Construction Phase Work. The scope, value and schedule of each NTP shall be defined by ESCO's signed proposal which shall be incorporated into the NTP. The issuance of an NTP shall indicate that the specified work has been approved by Customer and that ESCO shall be compensated for good faith performance pursuant to an NTP.
0.21. "Project" shall mean the improvement to Customer's Facilities to be designed and constructed by ESCO in accordance with and subject to the terms and conditions of this Agreement, the scope of work set forth in the Due Diligence Phase Notice to Proceed (attached as Exhibit A) ) any issued Long-Lead Time Material Procurement Notices to Proceed, and the Construction Notice to Proceed if issued by Customer
0.22. "Project Fee" shall have the meaning set forth in Section 2.4.1. 0.23. "Project Proposal" shall have the meaning set forth in Section 1. 7. 0.24. "Site" shall mean Customer property on or at which the Work is to be performed, specifically including Customer Facilities.
0.25. "Substantial Completion" shall mean, with respect to the entirety of the Construction Work or any portion thereof, the point at which such Work is operational, ready for use by Customer, and fully complete , except for minor items, adjustments and/or corrections ("Punch List Items").
0.26. "Work" shall mean the Due Diligence Work and Long-Lead Time Material Procurement Work and the Construction Work, collectively.
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3 Energy Service Contract
ARTICLE1
DUE DILIGENCE AND LONG-LEAD TIME MATERIAL PROCUREMENT PHASES OF THE PROJECT Section 1.1. Scope of Due Diligence Work. The scope and value of the Due Diligence Work to be performed by ESCO under this Agreement is described in Exhibit A attached hereto (the "Due Diligence Work Notice to Proceed").
Section 1.2. Government Code Section 1097.6. In accordance with California Government Code §1097.6{c)(1 ), ESCO's duties and services under this Agreement shall not include preparing or assisting Customer with any portion of Customer's preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with Customer. Customer shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this Project.
ESCO's participation in the planning, discussions, or drawing of project plans or specifications for any subsequent or additional contract shall be limited to conceptual, preliminary, or initial plans or specifications.
ESCO shall cooperate with Customer to ensure that bidders {if Customer elects to utilize a bidding process) for a subsequent contract on any subsequent phase of this Project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by ESCO pursuant to this Agreement.
Section 1.3. Due Diligence Schedule. The "Preliminary Due Diligence Schedule" attached hereto as Exhibit B sets forth a preliminary schedule for the Due Diligence Phase milestones.
Section 1.4. Due Diligence Fee. The fee for ESCO's performance of the Due Diligence Work is set forth in Exhibit C.
Section 1.5. Option to Proceed with Long-Lead Time Material Procurement Phase. During the performance of the Due Diligence Work, but prior to completion of the Due Diligence Work, ESCO may submit one or more proposals to the Owner for the procurement of certain materials and equipment that have long manufacturing and/or delivery lead times {"Procurement Proposal(s)"). The pricing in each Long-Lead Time Material Procurement Proposal shall remain valid for sixty (60) days. The Owner may accept a Procurement Proposal by issuing a Long-Lead Time Material Procurement Notice to Proceed authorizing ESCO to order those materials and equipment at the price specified in the particular Long-Lead Time Material Procurement Notice to Proceed.
Section 1.6. Invoicing and Payment for Due Diligence Work and Long-Lead Time Material Procurement Work
1.5.1 Each Notice to Proceed will contain a schedufe of values delineating the items to be completed pursuant to the Due Diligence Notice to Proceed, and, if applicable, each Long-Lead Time Materia, Procurement Work.
1.5.2 Beginning on the date that is one (1) month following the Effective Date of the Due Diligence Notice to Proceed, and if applicable, each Long-Lead Time Material Procurement Notice to Proceed effective date, ESCO shall provide monthly invoices to Customer seeking payment for the Due Diligence Work and/or Long-Lead Time Material Procurement Work performed in the prior month (based on the percentage completion of items delineated on the applicable schedule of values}.
1.5.3 Payment is due within thirty (30) days of the date of each invoice. If any payment is over thirty (30) days late from the due date stated on the invoice, ESCO may impose a penalty of one percent (1%) of the amount(s) owed for each month overdue and/or may terminate the Agreement in accordance with Article 5. If applicable, Customer's payments may be made from an escrow account set up in accordance with Customer's financing arrangement, in which case Customer shall be responsible for forwarding ESCO's invoices to the escrow agent and for authorizing and directing the escrow agent to timely release the invoiced amounts to ESCO.
Form Last Updated: May 2024 4 Energy Service Contract
4080-1002 / 2441679,2
Section 1.7. Project Proposal. At or prior to the Due Diligence Completion Meeting described in Exhibit ~. ESCO shall provide Customer with a proposal setting forth a proposed Scope of Construction Work, a proposed Project Fee, and any other information required to be included therein (the "Project Proposaf').
Unless the Project Proposal states otherwise, the pricing set forth in the Project Proposal will remain valid for sixty (60) days from the date of the Project Proposal (the "Project Proposal Date").
Section 1.8. Option to Terminate Agreement or Proceed into Construction Phase. Within sixty (60) days of the Project Proposal Date, Customer shall either (i) terminate this Agreement pursuant to Section 1.8.1 below, or (ii) execute the Construction Phase Notice to Proceed in accordance with Section 1.8.2 below.
1.8.1. Early Termination of Agreement. If Customer does not wish to proceed into the Construction Phase on substantially the terms set forth in ESCO's Project Proposal, Customer may terminate this Agreement for convenience immediately upon providing ESCO with written notice of termination and payment in full for the schedule of values in each Notice to Proceed issued hereunder by Customer.
1.8.2. Execution of Construction Amendment. If Customer does wish to proceed with the Construction Phase on substantially the terms set forth in ESCO's Project Proposal, and if Customer determines that entering into the Construction Phase Notice to Proceed t to implement the ECMs identified in the Project Proposal is in the best interests of Customer and that California Government Code §4217.10 et seq. allows Customer to enter into the Construction Amendment, then the Parties shall finalize and execute a Construction Phase Notice to Proceed reflecting substantially the terms set forth in ESCO's Project Proposal and any negotiated revisions thereto.
Section 1.9. Site Investigation. In performing the Due Diligence Work, ESCO shall exercise reasonable due diligence to understand the nature, location and extent of the Project, and as set forth in the Due Diligence Phase Notice to Proceed, it shall investigate the general and local conditions which are applicable to the Site, such as physical conditions at the Site, the conditions of the ground at the Site, and the character of equipment and materials needed for the performance of the Work at the Site (the "Site Investigation").
Section 1.10. Customer Information. In order to facilitate the Due Diligence Work and Long -Lead Time Material Procurement Work and to assist ESCO in recommending an appropriate Scope of Construction Work, Customer is responsible for providing ESCO with all such access, knowledge and history as may be relevant to ESCO's analysis and/or design, including, without limitation, with respect to Customer's Facilities, systems, and equipment, as well as its accounting, maintenance, and operation practices. Customer is required to disclose all known or suspected deficiencies, defects and malfunctions of or affecting the Facilities, systems, equipment and components thereof, as well as any site conditions that should be considered in planning and executing the construction services. Customer responsibilities are set forth in further detail in Exhibit A Customer agrees that it shall provide and continue to provide ESCO with all such information, documentation, access, knowledge and history as is available to Customer and relevant to ESCO's timely and successful completion of the Project and performance of its other obligations under the Agreement and the Scope of Work, including, without limitation, the following:
1.10.1. Drawings, Specifications and Surveys. Customer shall provide ESCO with copies of or access to (i) all such working drawings, specifications, surveys and "As-Built" drawings as it may have relating to the Site(s), to the Work, and/or to work being performed by other companies at the Site(s), and (ii) all such surveys as it may have describing the physical characteristics, legal boundaries and restrictions, and/or utility locations at and around the Site(s). All drawings, specifications, and surveys furnished to ESCO by Customer are and shall remain the property of Customer.
1.10.2. Energy Usage Data. Customer shall make available to ESCO, on a monthly basis or as ESCO may otherwise request, copies of all energy bills, energy usage data, and all other such documentation maintained by Customer.
Form Last Updated: May 2024
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5 Energy Service Contract
1.10.3. Facilities Information. Customer shall promptly provide infonnation and documentation relating to Customer's facilities, systems, and equipment, and to its maintenance and operations practices.
Customer has disclosed, or will disclose as promptly as possible upon teaming of, all known or suspected deficiencies, defects, and malfunctions of or affecting its facilities, systems or equipment and/or any components thereof, as well as any conditions of the Site(s) that should be considered in planning and executing the Work. To facilitate the exchange of relevant facilities information, Customer shall provide ESCO with access to Customer's key facilities personnel and, at ESCO's reasonable request, shalt designate a Customer representative to ensure the timely and correct transfer of information requested by ESCO.
ARTICLE 2
CONSTRUCT/ON PHASE OF THE PROJECT
Section 2.1. Commencement of Construction Phase.
2.1.1. DIR Project Registration. Prior to executing the Construction Notice to Proceed, Customer shall register the Project with the California Department of Industrial Relations, using Form PWC 100.
2.1.2. Execution of Construction Amendment Serves as Notice to Proceed. Unless the Construction Notice to Proceed expressly provides otherwise, execution of the Construction Notice to Proceed shall serve as Customer's notice to ESCO to commence the Construction Work.
2.1.3. Payment and Performance Bonds. Promptly following the Construction Notice to Proceed Effective Date and before commencing the Construction Work, ESCO shall provide payment and performance bonds, each with an "admitted surety insurer," as defined by California Code of Civil Procedure §995.120, authorized to do business in the State of California, and each for an amount equal to 100% of the Project Fee. Notwithstanding any provision to the contrary herein, any performance bonds and payment bonds provided in connection with this Agreement guarantee only the performance of the Construction Work and the payment of any Subcontractors engaged by ESCO in connection therewith, respectively, and shall not be construed to guarantee the performance of: (1) any efficiency or energy savings guarantees (if applicable pursuant to Section
2.5 hereof), (2) any support or maintenance services, or (3) any other guarantees, warranties or covenants with terms beyond one (1) year in duration from the Date of Substantial Completion.
Section 2.2. Scope of Work. The scope of the construction services to be performed by ESCO pursuant to this Agreement (the "Scope of Construction Work") shall be set forth in the Construction Notice to Proceed.
Section 2.3. Construction Schedule.
2.3.1. Construction Time. The scheduled date of Substantial Completion of the Construction Work (the "Completion Date") and any applicable milestone dates shall be determined at the conclusion of the Design Phase and shall be set forth in the "Preliminary Construction Schedule" attached to the Construction Notice to Proceed.
2.3.2. Substantial Completion. Upon Substantial Completion of the Construction Work (or any portion thereof, as appropriate), ESCO will issue to Customer a "Letter of Substantial Completion" with respect to such substantially complete Work (or portion thereof). The date on which ESCO issues any such Letter of Substantial Completion shall be the "Date of Substantial Completion" with respect to the applicable Work.
2.3.3. Delays. If ESCO's progress on the Project is at any point delayed due to changes in the requested scope of Work, labor disputes, fire, unusual delay in deliveries, abnormally severe weather conditions, unavoidable casualties, epidemic or pandemic conditions, quarantine restrictions, unusually severe shortages in the available supply of, or delays of common carriers, then the Form Last Updated: May 2024 6 Energy Service Contract
408()-1002 / 2441679.2
Parties agree to execute a Change Order reflecting an equitable extension of time. In the event of any suspension or delay due to the acts or omissions of Customer or due to Customer's instructions to stop Work by no fault of ESCO: (i) all affected dates and milestones shall be extended to reflect such period of interruption; and (ii) the Project Fee shall be equitably adjusted to cover ESCO's costs of demobilization, delay and remobilization related to such suspension or delay (provided, however, that ESCO shall cooperate with Customer, to the extent commercially reasonable, in mitigating such costs). If such suspension or delay continues for more than ninety (90) consecutive days, through no act or fault of ESCO, ESCO may terminate this Agreement in accordance with Article 5.
Section 2.4. Compensation, Invoicing and Payment.
2.4.1. Project Fee. The Project Fee shall be determined at the conclusion of the Due Diligence Phase and, if applicable, the Long-Lead Time Material Procurement Phase, and shall be set forth in the Construction Notice to Proceed. The Project Fee is inclusive of, and not in addition to, the costs incurred by ESCO in the performance of the Due Diligence Work and, if applicable, the Long-Lead Time Material Procurement Work. The Project Fee shall not exceed $ _____ (the "Maximum Amount'J.
2.4.2. Schedule of Values. ESCO will develop a schedule delineating the items to be completed pursuant to the Scope of Construction Work (the "Schedule of Values") and shall endeavor to provide such Schedule of Values to Customer within ten (10) days of the Construction Notice to Proceed Effective Date.
2.4.3. Mobilization Invoice and Payment. Within one (1) month of the Construction Phase Notice to Proceed Effective Date, Customer shall make payment to ESCO for mobilization expenses and other expenses incurred to date in connection with the Project ("Mobilization Paymenf') in an amount equal to twenty percent (20%) of the Project Fee and the Design Fee. Such mobilization and other expenses may include, without limitation, the Design Fee and any design, engineering and/or development expenses incurred in connection with the Project, expenses relating to procurement of equipment, materials, and/or bonds, and any other Project start-up and mobilization expenses incurred to date.
2.4.4. ESCO Invoices. Beginning on the date that is two (2) months following the Construction Notice to Proceed Effective Date, ESCO shall provide monthly invoices to Customer seeking payment for the Work performed in the prior month (based on the percentage completion of items delineated on the Schedule of Values).
2.4.5. Payment. Payment is due within thirty (30) days of the date of each invoice. If any payment is over thirty (30) days late from the due date stated on the invoice, ESCO may impose a penalty of one percent (1%) of the amount(s) owed for each month overdue and/or may terminate the Agreement in accordance with Article 5. If applicable, Customer's payments may be made from an escrow account set up in accordance with Customer's financing arrangement, in which case Customer shall be responsible for forwarding ESCO's invoices to the escrow agent and for authorizing and directing the escrow agent to timely release the invoiced amounts to ESCO.
2.4.6. Final Payment and Release of Liens. Final payment shall not become due until ESCO has delivered to Customer a conditional release of all liens arising out of this Agreement, covering all labor, materials, and equipment for which a lien could be filed, or a bond satisfactory to Customer to indemnify Customer against such lien. The making of final payment shall constitute a waiver of claims by Customer except those arising from (1) unresolved liens, security interests or encumbrances arising out of the Agreement, (2) ESCO's failure to perform the Construction Work in substantial compliance with the requirements of the Contract Documents, and (3) any Form Last Updated: May 2024
40B0-1002 / 2441679.2
7 Energy Service Contract
warranties required by the Contract Documents. Customer also shall promptly record a notice of completion or notice of acceptance in the office of the county recorder in accordance with California Civil Code §9204.
2.4.7. Retention. Following payment of the Mobilization Payment, which shall not be subject to any retention, Customer may retain five percent (5%) of each monthly progress payment (the "Amounts Retained"). The Amounts Retained with respect to a given portion of the Work shall be released to ESCO within thirty (30) days of the Date of Substantial Completion of such portion of the Work, and any Amounts Retained remaining upon Substantial Completion of the Project shall be released to ESCO with the final payment. Customer may make progress payments in full without Amounts Retained at any time after fifty percent (50%) of the Work has been completed, as permitted pursuant to California Public Contract Code §9203. In lieu of Amounts Retained being held by Customer, ESCO may request that securities be substituted or Amounts Retained be held in an escrow account pursuant to California Public Contract Code §22300.
Section 2.5. Performance Guarantees. If ESCO is providing any efficiency or energy savings guarantees upon completion of the Construction Work, the terms of such efficiency or energy savings guarantees shall be set forth and/or incorporated in the Construction Notice to Proceed and the applicable Exhibits thereto. If no such terms are set forth and/or incorporated in the Construction Notice to Proceed and the applicable Exhibits thereto, then no efficiency or energy savings guarantees are being made by ESCO in connection with this Agreement.
ARTICLE3
PERFORMANCE OF THE WORK
Section 3.1. Standard of Performance. ESCO shall supervise and direct the Work using such degree of care, skill and attention as is reasonably expected of professionals providing similar services within the State under similar circumstances (such circumstances to include, for example, conditions present at the Site(s) and any financial or other constraints applicable to the Project). ESCO shall be solely responsible for coordinating and/or performing all portions of the Work and shall have control over the means, methods, techniques, sequences and procedures used in the performance of the Work, unless the Scope of Work gives other specific instructions concerning these matters. All construction documents that are required to be prepared by ESCO in connection with the Work shall be prepared by qualified personnel and shall be in accordance with applicable codes, regulations, and laws. ESCO shall remain responsible for all Work performed, whether performed by ESCO or its Subcontractors.
Section 3.2. Licenses. ESCO represents and warrants that it currently has or shall timely obtain, and that it shall maintain, all licenses, permits, qualifications and approvals of whatever nature as are legally required to permit ESCO to perform the Work.
Section 3.3. Regular Working Hours. Except as Customer, in its sole discretion, may otherwise agree, ESCO shall perform such portions of the Work as are to occur at or in Customer's Facilities only: (i) on weekdays (i.e., any day, Monday through Friday, inclusive); and (ii) commencing at or after such time, and ending by or prior to such time, as may be specified in either an applicable local ordinance or any "Mitigation Monitoring Plan" adopted by Customer pursuant to the California Environmental Quality Act and made available to ESCO, whichever is more restrictive.
Section 3.4. Employees and Subcontractors.
3.4.1. ESCO's Subcontractors. ESCO may use one or more subcontractors (each, a "Subcontractor") to perform any portion(s) of the Work as ESCO may deem appropriate; provided, however, that ESCO shall remain ultimately responsible for the performance of its obligations under this Agreement. ESCO shall ensure that all of its Subcontractors have the skill, knowledge and experience necessary to perform the services assigned to them, and shall further ensure that each of its Subcontractors holds all licenses legally required for the practice of its profession.
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3.4.2. ESCO's Employees. The employees of ESCO shall at all times be under ESCO's exclusive direction and control in performing the Work. ESCO shall pay all wages, salaries, and other amounts due to such personnel in connection with their performance of services under this Agreement, as required by law. ESCO shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, federal and state income tax withholdings, unemployment insurance, and workers' compensation insurance. ESCO shall employ only competent workers for performance of the services and shall not employ any person who is unfit or unskilled in the Work assigned to him or her.
3.4.3. Supervision by ESCO. ESCO shall at all times enforce strict discipline and good order among its Subcontractors and employees perfonning any portion(s) of the services. At Customer's request, ESCO shall remove from the Site any person, regardless of whether employed by the ESCO or any Subcontractor, who is not performing the Work in a competent manner or who is a threat to the safety of persons or property at the Site, and ESCO shall not thereafter pennit any such person to perform any of the Work or to be present on or at the Site. In addition, during the course of performing the Construction Work, ESCO shall have an experienced and competent superintendent (and any necessary assistants) present on the Site to supervise ESCO's employees and Subcontractors in the performance of the Construction Work.
3.4.4. Prohibition Against Unlawful Discrimination. ESCO represents and warrants that it is an equal opportunity employer and agrees that it shall not discriminate in violation of any applicable federal, state, or other law, rule or regulation, including, but not limited, to discrimination against any employee or applicant for employment on account of such person's race, religion, color, national origin, ancestry, sex, or age. ESCO shall apply such policy of non-discrimination in connection with all activities related to ESCO's employees and Subcontractors, including with respect to initial employment, promotion, demotion, transfer, recruitment or recruitment advertising, and layoff or termination.
Section 3.5. ESCO's Compliance with Law.
3.5.1. Compliance Generally. ESCO and each of its Subcontractors shall perform the Work in compliance with Applicable Law. Upon commencement of the Construction Phase, Customer will coordinate and conduct, and ESCO and each of its Subcontractors will attend, any mandatory construction conference held for purposes of ensuring that ESCO and its Subcontractors are aware of the Applicable Laws relevant to the Project.
3.5.2. DIR Registration. ESCO acknowledges that the Project will be subject to compliance monitoring and enforcement by the California Department of Industrial Relations (" DIR"). ESCO shall be responsible for ensuring that it and all of its Subcontractors are currently and properly registered with the DIR. Prior to commencing the Construction Work, ESCO and each of its Subcontractors shall: (i) complete, execute, and submit to Customer a "Certification Regarding Contractor Registration" fonn; and (ii) provide evidence of registration to Customer. Notwithstanding anything to the contrary, if at any time during the performance of the Construction Work, ESCO or any of its Subcontractors is not properly registered with the DIR (including, without limitation, if the registration expires or the DIR revokes the registration), such failure of registration shall constitute a material breach of this Agreement for purposes of Section 5.2 hereof (Customer Termination for Cause).
3.5.3. Labor Laws. ESCO and each of its Subcontractors shall, at no additional cost to Customer, comply with all applicable provisions of the California Labor Code and the regulations promulgated thereunder (collectively, the "Labor Laws"). To the extent required by California Labor Code §1771 or other applicable law, all employees of ESCO and ESCO's subcontractors performing Wo.rk at the Site will be paid the per diem prevailing wages for the employee's job classification in the locality in which the Work is performed. In accordance with California Labor Code §§1773 and 1773.2, Customer will obtain from the Director of Industrial Relations the general prevailing rate Form Last Updated: May 2024 9 Energy Service Contract
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of per diem wages and the general prevailing rate for holiday and overtime work, in the locality in which the Work is to be performed, for each craft, classification or type of worker needed to execute the Work at the Site, and will cause copies of such determinations to be kept on file at its principal office and posted at each Site. Customer will promptly notify ESCO of any changes to any such prevailing wage determination.
(a) No Disqualification. ESCO represents and warrants that neither it, nor any of its Subcontractors, has been debarred by the California Labor Commissioner pursuant to Section 1777.1 of the California Labor Code or otherwise.
(b) Failure to Comply. Any failure of ESCO or its Subcontractors to comply with applicable Labor Laws shall constitute a material breach of this Agreement for purposes of Section 5.2 hereof (Customer Termination for Cause). In addition, Customer may withhold payment to ESCO as necessary to satisfy any civil wage or other penalty assessment issued by the California Labor Commissioner.
3.5.4. Criminal-History Background Checks. If Customer is a school district and ESCO's (and/or its Subcontractors') employees may come into contact (other than limited contact) with pupils in the process of performing the Work, then ESCO and each of its Subcontractors that will have personnel at or on any Customer property shall comply with the requirements of California Education Code Section 45125.2(a). If none of the methods listed in Section 45125.2(a) is utilized, ESCO, at is sole cost and expense, and without additional compensation from Customer, shall comply with the requirements of California Education Code Section 45125.1.)2 Section 3.6. Reliance on Customer Information. In performing the Work, ESCO shall be entitled to rely on the accuracy and completeness of any and all information provided to ESCO by Customer, including without limitation the information required to be provided pursuant to Section 1.10 of this Agreement, except where it would be unreasonable to do so.
Section 3.7. ESCO's Wa"anties and Disclaimers. ESCO warrants to Customer that, for a period of one ( 1) year from the applicable Date of Substantial Completion of Work covered by a Letter of Substantial Completion (the • Warranty Period"), the materials and equipment manufactured by ESCO will be of good quality and new unless the Contract Documents require or permit otherwise, and further warrants that such Work will conform to the requirements of the Contract Documents and will be free from defects, except for those inherent in the quality of the Work the Contract Documents require or permit. Work, materials, or equipment not conforming to these requirements may be considered defective. ESCO's warranty excludes remedy for damage or defect caused by abuse, alterations to the Work not executed by or on behalf of ESCO, improper or Insufficient maintenance, improper operation, or normal wear and tear and normal usage. ESCO shall repair or replace defective material or equipment and re-perform Work to correct any defect within the applicable Warranty Period. In the event warranty Work by the ESCO is necessary, the ESCO shall provide an additional one-year warranty on the corrected Work only from the date the corrected Work is completed or the end of the initial warranty period, whichever is later. ESCO does not warrant products not manufactured by ESCO, but it will pass on to Customer any manufacturer's warranty to the extent permitted. THE
FOREGOING WARRANTIES AND REMEDIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES AND REMEDIES, WHETHER STATUTORY, EXPRESS OR IMPLIED (INCLUDING ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND ALL WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OR TRADE).
ARTICLE4
CHANGES
Section 4.1. Change Orders. Customer may request changes in the Scope of Design Work and/or the Scope of Construction Work by submitting a description of the requested changes to ESCO in writing. In response to any such request and within fifteen (15) business days thereof, ESCO shall provide to Customer Form Last Updated: May 2024
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a written proposal that describes in reasonable detail: (i) the proposed change to the scope of Work; (ii) the impact of the change on the time required for performance of ESCO's obligations; (iii) the impact of the change on the compensation to be paid by Customer to ESCO; and (iv) if applicable pursuant to Section 2.5 hereof, the impact of the change on any efficiency or energy savings guarantees (a "Change Proposal"). ESCO may likewise submit a Change Proposal to Customer in the event this Agreement authorizes or requires the Parties to negotiate and/or execute a Change Order or in the event ESCO otherwise wishes to request a Change Order in good faith; in such event, the Change Proposal shall include a description of the contractual, legal or other basis for requesting the proposed changes.
Section 4.2. Change Order Process. Within five (5) business days following ESCO's delivery of a Change Proposal, the Parties shall meet and confer, acting reasonably and in good faith, to negotiate a mutually acceptable Change Order in accordance with the principles set forth herein. Promptly following agreement on the terms and conditions of the Change Order, the Parties shall execute the same. If the Parties do not agree upon the terms and conditions of the Change Order, then either party may submit the matter to dispute resolution pursuant to Section 8.12 (Dispute Resolution and Claims). No change shall be valid or binding on the Parties unless, and except to the extent, incorporated into a Change Order.
Section 4.3. Materials and Equipment Procurement. In the event a significant delay in acquiring materials or equipment or a significant increase in the price of materials or equipment occurs during the performance of the Agreement by no fault of ESCO, the Project Fee and/or the Completion Date, as appropriate, shall be equitably adjusted by Change Order. A change in the price of an item of material or equipment will be considered significant when the price of an item increases by five percent (5)% between the Project Proposal Date and the date on which such item is due to be purchased and/or installed in accordance with the Schedule of Values or the Construction Schedule.
Section 4.4. Unforeseen Conditions. "Unforeseen Site Conditions• shall mean and include any subsurface, concealed or latent conditions, including without limitation the presence of hazardous materials, that differ materially from those conditions (i) actually known by ESCO, (ii) accurately reflected in available existing data, (iii) expected based on the results of ESCO's Site Investigation, and/or (iv) that would have been identified, discovered and/or confirmed by the exercise of reasonable due diligence in ESCO's Site Investigation. In the event ESCO encounters Unforeseen Site Conditions at the Site or that otherwise impact the Project, ESCO shall notify Customer of such conditions promptly and before such conditions are further disturbed. but in no event later than three (3) business days after observing such conditions. To the extent ESCO incurs additional costs or delays as a result of Unforeseen Site Conditions, the Parties shall execute a Change Order reflecting an equitable adjustment to the Project Fee and/or the Completion Date, as appropriate.
ARTICLE 5
SUSPENSION AND TERMINATION
Section 5.1. Termination for Convenience by Customer. Customer may terminate this Agreement for convenience as set forth in Section 1.8.1.
Section 5.2. Termination for Cause by Customer. If ESCO repeatedly or materially breaches this Agreement, Customer has provided written notice to ESCO detailing the alleged breach, and within thirty (30} days of ESCO's receipt of such written notice ESCO has neither cured the alleged breach nor diligently commenced to cure such breach, Customer may terminate this Agreement effective immediately upon the receipt of written notice by ESCO. Nothing in this Agreement shall be deemed or construed as a waiver by ESCO of any rights it may have with respect to a wrongful suspension or termination by Customer.
Section 5.3. Suspension or Termination for Cause by ESCO. If Customer fails to make any payment(s} to ESCO as required in this Agreement or repeatedly or materially fails, refuses or neglects to fulfill any of its other obligations or responsibilities under this Agreement or the Contract Documents, ESCO may, after delivery of written notice and providing Customer thirty (30} days to cure such failure, refusal or neglect, suspend the Work or terminate this Agreement. If ESCO suspends the Work pursuant to this Section, the Work schedule and any anticipated completion dates shall be adjusted accordingly. If ESCO terminates the Form Last Updated: May 2024 11 Energy Service Contract
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Agreement pursuant to this Section, ESCO shall be entitled to recover payment from Customer in accordance with Section 5.4 below. Nothing in this Agreement shall be deemed or construed as a waiver by Customer of any rights it may have with respect to a wrongful suspension or termination by ESCO.
Section 5.4. Compensation to ESCO Upon Termination. In the event of any termination other than a termination pursuant to Section 1.8.1 or a termination for cause by Customer pursuant to Section 5.2, Customer shall compensate ESCO: (i) for such portion of the Work as has been completed prior to the effective date of termination; (ii) for services in progress by ESCO and any of its Subcontractors at such time, including any overhead and/or anticipated profit attributable to such Work in progress, and (iii) for any costs and damages incurred by reason of the termination, including any proven loss with respect to subcontracts, materials, equipment, tools and machinery. In the event of a termination pursuant to Section 1.8.1, Customer shall pay the Design Fee to ESCO on the date of such termination.
Section 5.5. ESCO to Provide Copies of Project Documents. Not later than sixty days following the effective date of a termination pursuant to this Article 5, ESCO shall provide to Customer copies of all Project Documents (defined in Section 8.4).
Section 5.6. Effect of Termination. Termination of this Agreement and/or any of the Contract Documents shall release ESCO of all remaining obligations under the Agreement and the Contract Documents as of the effective date of termination, including, without limitation, any efficiency or energy savings guarantees (if applicable pursuant to Section 2.5 hereof).
Section 5. 7. Survival of Obligations. The Parties' respective rights and obligations pursuant to this Article 5, Article 7 (subject to Section 7.9), and Article 8 shall survive termination of this Agreement.
ARTICLE6
INSURANCE
Section 6.1. Required Insurance. ESCO shall, at its sole cost and expense, maintain in effect the following policies of insurance for the applicable period(s) set forth in Section 6.2:
(i) Commercial General Liability Insurance. A policy of commercial general liability insurance, written on an "occurrence• basis, with a limit of two million dollars ($2,000,000) per occurrence ("General Liability Policy").
(ii) Automobile Liability Insurance. A policy of automobile liability insurance, written on an "occurrence" basis, with a combined single limit of one million dollars ($1,000,000) per accident for bodily injury and property damage ("Auto Liability Policy"). The Auto Liability Policy must include coverage for owned, hired and non-owned automobiles. (iii) Workers' Compensation and Employer's Liability Insurance. Workers' compensation insurance as required by California law, and employer's liability insurance, written on an "occurrence" basis, with a limit of two million dollars ($2,000,000). (iv) Professional Liability Insurance. Professional liability insurance, written on a claims made (and reported) basis, with a limit of two million dollars ($2,000,000) per claim ("Professional Liability Policy").
Section 6.2. Duration of Insurance. The Policies shall be procured by ESCO prior to ESCO's commencement of the Project and, except for the Professional Liability Policy, shall be maintained in effect for at least one year following the earlier of the Project Completion Date or termination of this Contract. ESCO shall maintain the Professional Liability Policy in effect for at least three years following the earlier of the Project Completion Date or termination of this Contract..
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Section 6.3. Insurer Rating Standards. The insurance policies required pursuant to this Article 6 must be issued by one or more insurers that are (i) licensed to do business in the State and (ii) have an AM. Best Company rating of not less than "A-" and a financial size category of not less than "VII." Section 6.4. Additional Insureds. At Customer's request, ESCO shall include Customer and Customer's directors, officers, employees, and agents as additional insureds on ESCO's General Liability Policy and Auto Liability Policy. The additional insured endorsements will be on ESCO's most current versions of ISO Form CG 2010 and ISO Form CG 2037 or their substantial equivalents.
Section 6.5. Waiver of Subrogation. Each of the General Liability Policy and the Auto Liability Policy shatl provide a waiver of transfer of rights of recovery in favor of Customer.
Section 6.6. ESCO Insurance is Primary. The General Liability Policy and the Auto Liability Policy shall be endorsed to provide that they are primary and non-contributory. Section 6. 7. Premiums, Deductibles and Self-Insured Retentions. ESCO shall be solely responsible for paying deductibles and self-insured retentions applicable to any of the insurance policies that ESCO is required to have in effect pursuant to this Article 6.
Section 6.8. Evidence of Coverage. Prior to commencing the Work, ESCO shall provide to Customer a duly authorized and executed certificate of insurance evidencing that the insurance policies required to be maintained by ESCO pursuant to this Article 6 are in effect {each a "Certificate of Insurance") Section 6.9 Notice of Change in Policies. ESCO shall notify Customer within thirty (30) days of its receipt of written notice from an applicable insurer that a policy required hereunder will expire without renewal or will be canceled, terminated, or materially reduced in coverage.
Section 6.10 Review of Coverage. Customer's failure to identify any non-compliance with the requirements of this Article shall not be deemed as a waiver of such requirements.
Section 6.11 Subcontractor Insurance. ESCO shall require each Subcontractor to maintain such levels and types of insurance coverage as are appropriate for the Work to be performed by such Subcontractor.
ARTICLE 7
INDEMNIFICATION AND LIABILITY
Section 7.1. Indemnification of Customer. ESCO shall, at its own cost and expense, indemnify, defend and hold harmless Customer and Customer's officers, directors, employees and agents {"Indemnified Parties") from and against all damages, penalties, losses, costs and expenses (including reasonable attorneys' fees) arising out of any third-party claim for personal injury or tangible property damage, but only to the extent caused by the negligence or misconduct of ESCO or any of ESCO's agents (including Subcontractors of any tier) in connection with this Contract, and provided that the Indemnified Parties (i) give ESCO prompt written notice of any such claim, and (ii) provide such cooperation and information as ESCO may reasonably require in the defense or handling of any such claim. ESCO shall not be responsible for any settlement or consent to judgment made by or on behalf of an Indemnified Party without ESCO's prior written consent.
Section 7.2. Defense of Customer. ESCO shall control the defense and handling of any claims for which ESCO is required to indemnify, and has accepted the obligation to indemnify, Customer and/or Customer Agents pursuant to Section 7.1, at ESCO's sole cost and expense, using qualified and appropriately experienced legal counsel selected and retained by ESCO. ESCO's obligations under Section 7.1 shall not apply to any claim that is settled or otherwise resolved by Customer and/or any Customer Agent without ESCO's prior written consent. Where there are causes of action against the Customer that are not covered by ESCO's indemnification obligation set forth in Section 7.1, Customer shall have the right to control its own defense against said causes of action.
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Section 7.3. Limitation on ESCO Obligations. ESCO shall not be obligated to indemnify or hold harmless Customer or any Customer Agent pursuant to this Article 7 to the extent any claim, demand, action, judgment, damage, loss, cost or expense results from the negligence or misconduct of Customer or any of Customer Agents. ESCO shall be reimbursed for any costs and expenses incurred in the defense or handling of any claim to the extent such claim is determined by a court or arbitrator of competent jurisdiction to be attributable to the negligence or misconduct of Customer or any Customer Agent.
Section 7.4. Applicability of Civil Code Section 2782.8. To the extent ESCO or any Subcontractor will provide "design professional services" in connection with this Agreement, this Article 7 shall be interpreted consistent with, and shall be limited by, California Civil Code Section 2782.8 as in effect on the Effective Date, and any obligation to indemnify Customer and/or Customer Agents shall apply only to the extent arising from the negligence, recklessness, or willful misconduct of ESCO or any of the ESCO Agents.
Section 7.5. Notice; Cooperation. Customer and Customer Agents shall promptly provide written notice to ESCO of any claims, demands, actions, judgments, damages, losses, costs and/or expenses for which ESCO may be responsible pursuant to this Article 7. Customer and Customer Agents shall fully cooperate with ESCO, at ESCO's cost and expense, to the extent reasonably necessary or appropriate in connection with the performance of ESCO's obligations pursuant to this Article 7.
Section 7.6. Insurance Not a Limitation. The obligations of ESCO pursuant to this Article 7 shall not be deemed or construed to be conditioned upon, limited by or expanded by the existence of any insurance coverage maintained by a Party or other person or entity.
Section 7.7. Subcontractor Indemnity. ESCO shall require each of its Subcontractors to comply with the requirements of this Article 7 related to indemnifying, holding harmless, and defending Customer, except to the extent Customer agrees in writing to apply a different set of standards or requirements to a particular Subcontractor.
Section 7.8. Limitations of Liability.
(i) NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT OR THE CONTRACT
DOCUMENTS TO THE CONTRARY, IN NO EVENT SHALL EITHER PARTY, ITS OFFICERS,
DIRECTORS, AFFILIATES OR EMPLOYEES BE LIABLE FOR ANY FORM OF INDIRECT,
SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING, BUT NOT LIMITED TO,
LOSS OF USE, LOSS OF PRODUCTION, LOSS OF PRODUCT, LOSS OF REVENUE, LOSS
OF PROFITS OR LOSS OF DATA DAMAGES, WHETHER SUCH DAMAGES ARISE IN
CONTRACT OR TORT AND IRRESPECTIVE OF FAULT, NEGLIGENCE OR STRICT LIABILITY
OR WHETHER SUCH PARTY HAS BEEN ADVISED IN ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES.
(ii) NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT OR THE CONTRACT
DOCUMENTS AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE MAXIMUM
LIABILITY OF ESCO FOR DAMAGES UNDER THIS AGREEMENT AND THE CONTRACT
DOCUMENTS SHALL NOT EXCEED THE AMOUNTS ACTUALLY PAID BY CUSTOMER FOR THE SERVICE($) GIVING RISE TO THE CLAIM. THE PRECEDING SENTENCE SHALL NOT
APPLY TO ANY CLAIM FOR THIRD PARTY CLAIMS OF BODILY INJURY OR TANGIBLE PROPERTY DAMAGE, OR TO ANY OTHER CLAIM TO THE EXTENT OF ESCO'$ GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
Section 7.9. Survival of Obligations. With respect to acts, omissions or incidents occurring prior to completion of the Project and/or termination of this Agreement, the Parties' respective rights and obligations pursuant to this Article 7 shall survive completion of the Project and/or termination of this Agreement for the applicable statute of limitations.
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ARTICLES
MISCELLANEOUS
Section 8.1. Relationship of the Parties. ESCO is, for any and all purposes of or related to this Agreement, an Independent contractor to Customer. In no event shall ESCO or any of its Subcontractors, or any officer, employee or agent of either, be deemed or construed to be a public official, officer, employee, consultant, or agent of Customer for purposes of conflict of interest laws or any other applicable law. Nothing herein shall be deemed to establish a relationship of principal and agent between ESCO and Customer, or any of their respective agents or employees, and neither this Agreement nor any of the Contract Documents may be construed as creating any form of legal association or arrangement that would impose liability upon one Party for the act or failure to act of the other Party.
Section 8.2. Taxes. ESCO and Customer agree to take all necessary measures to comply with all tax laws and regulations that apply to this Contract. ESCO shall be responsible for and pay when due all taxes for which ESCO is liable by reason of the performance of this Contract. Customer shall be responsible for and pay when due all taxes, if any, for which Customer is liable by reason of the performance of this Contract Section 8.3. Project Records. ESCO shall keep and maintain all such books and records as are necessary for proper administration and performance of the Agreement and/or as are required by law and/or this Agreement to be maintained (to the extent exclusively related to the performance of the Agreement. "Project Records"). Pursuant to Government Code Section 8546.7, the California State Auditor has the right, for a period of three years after final payment is made under this Agreement, to examine and audit this Agreement at the request of Customer or as part of any audit of Customer. To the extent required by Government Code Section 8546.7 during such three-year period, ESCO shall allow the California State Auditor and Customer to examine and/or audit this Agreement and the relevant Project Records at ESCO's offices during normal business hours and upon reasonable advanced notice.
Section 8.4. Ownership and Use of Documents. Any and all final documents (both originals and reproductions) that have been obtained or prepared for Customer by ESCO pursuant to this Agreement and that have been paid for by Customer in accordance with this Agreement (each a "Project Documenf) shall be deemed and construed to be and remain the property of Customer. Assuming Customer has paid in full for the Project Documents, Customer shall have the right to use the Project Documents, for their intended purposes and, at Customer's sole discretion, for any other purpose, with no additional compensation due to ESCO.
Except as expressly agreed in writing, Customer shall not be required to employ ESCO in connection with any future use of the Project Documents. However, notwithstanding anything to the contrary, Customer acknowledges and agrees that the Project Documents are prepared with the expectation and intent that the Project is to be performed and completed by or on behalf ESCO; in the event Customer terminates this Agreement pursuant to Section 1.8.1, Customer acknowledges and agrees that the Project Documents are not intended to be, and shall not be, relied upon by Customer or any third party in performing or completing any aspect of the Project. Customer shall indemnify and hold ESCO harmless for any liabilities caused by Customer's use of the Project Documents other than in connection with ESCO's completion of the Project.
Section 8.5. Intellectual Property Rights. Nothing in this Agreement shall be deemed or construed to result in Customer acquiring any interest or rights in any intellectual property owned, possessed or developed by ESCO or any third parties ("ESCO Intellectual Property"), including without limitation any ESCO Intellectual Property in or underlying the Project Documents. However, ESCO hereby grants Customer a perpetual, paidup, worldwide license to make use of ESCO Intellectual Property to the extent that such ESCO Intellectual Property is necessary for the proper use, operation and/or maintenance of the Project Documents and/or any other products, services or deliverables provided by ESCO pursuant to this Agreement. ESCO shall indemnify, defend and hold harmless Customer and Customer Agents for any infringement of third-party intellectual property rights caused by ESCO or any of its Subcontractors in connection with this Agreement.
Section 8.6. Force Majeure. Notwithstanding anything to the contrary, ESCO shall not be held responsible (whether by actual or liquidated damages, termination for default, or otherwise) for any delay or nonperformance that is caused by circumstances beyond ESCO's reasonable control (such as, for example, acts of God or the public enemy, acts of Governmental Authorities, fires, floods, epidemics and/or pandemics, Form Last Updated: May 2024 15 Energy Service Contract
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•
quarantine restrictions, strikes, unusually severe weather, unusually severe shortages in the available supply of materials or equipment needed for performance of the Work, Unforeseen Site Conditions, and delays of common carriers). In the event that ESCO's performance hereunder is impacted by such force majeure circumstances, then upon ESCO's reasonable request (with appropriate supporting documentation), the Parties shall execute a Change Order reflecting such equitable changes to this Agreement as may be necessary or appropriate under the circumstances.
Section 8.7. Export Control. The products, software, services, information, other deliverables and/or the technologies embedded therein (hereinafter referred to as "Deliverables") provided by ESCO under this Agreement contain or may contain components and/or technologies from the United States of America ("US"), the European Union ("EU') and/or other nations. Customer acknowledges and agrees that the assignment and/or usage of Deliverables under this Agreement shall fully comply with applicable US, EU and other national and international export control laws and/or regulations. Unless any applicable export licenses have been obtained from the relevant authority and the ESCO has approved, the Deliverables shall not (i) be exported and/or re-exported to any destination or party (including without limitation to any individual, group and/or legal entity) restricted by the applicable export control laws and/or regulations; or (ii) be used for those purposes and fields restricted by the applicable export control laws and/or regulations. Customer also agrees that the Deliverables will not be used either directly or indirectly in any rocket systems, unmanned air vehicles, and/or nuclear weapons delivery systems, nor will they be used in any design, development, production or use for any weapons (which may include, without limitation, chemical, biological or nuclear weapons). If any necessary or advisable licenses, authorizations or approvals are not obtained, whether arising from inaction by any relevant Governmental Authority or otherwise, or if any such licenses, authorizations or approvals are denied or revoked, or if the applicable export control laws and/or regulations would prohibit ESCO from fulfilling any order, or would in ESCO's judgment otherwise expose ESCO to a risk of liability under the applicable export control laws and/or regulations if it fulfilled the order, ESCO shall be excused from all obligations under such order and/or this Agreement.
Section 8.8. Ethics and Compliance with Laws. Each Party shall comply in all respects with all Applicable Law governing the duties. obligations, and business practices of that Party. Neither Party shall take any action in violation of any Applicable Law that could result in liability being imposed on the other Party. In the event Customer has concerns related to ESCO's ethics or any potential violations ESCO's code of conduct, Customer is welcome to make use of ESCO's Trust Line. The Trust Line is a confidential channel through which customers can ask questions and raise concerns. Reports can be made using the following link:
hHps;//secure .ethicspoint.eu/domain/media/en/gui/104677 /index.htm I .
Section 8.9. Cybersecurity.
8.9.1. Customer's Obligations for Its Systems. Customer is solely responsible for the implementation and maintenance of a comprehensive · security program (" Security Program") that contains reasonable and appropriate security measures and safeguards to protect its computer network, systems, machines, and data (collectively, "Systems"), including those Systems on which it runs the Deliverables provlded by ESCO, against Cyber Threats. "Cyber Threaf' means any circumstance or event with the potential to adversely impact, compromise, damage, or disrupt Customer's Systems or that may result in any unauthorized access, acquisition, loss, misuse, destruction, disclosure, and/or modification of Customer's Systems, including through malware, hacking, or similar attacks. Without limiting the foregoing, Customer shall at a minimum:
(I) have qualified and experienced personnel with appropriate expertise in cybersecurity maintain Customer's Security Program, and have such personnel regularly monitor cyber intelligence feeds and security advisories applicable to Customer's Systems or Customer's industry;
(ii) promptly update or patch its Systems or implement other appropriate measures based on any reported Cyber Threats and in compliance with any security notifications or bulletins, whether publicly disclosed on ESCO's security notification webpage at https://www.se.com/ww/en/work/support/cyi)er~ecurity/sacurity-notlficalioJ\S_,js.p or otherwtse provided to Customer;
(iii) regularly monitor its Systems for possible Cyber Threats; Form Last Updated: May 2024 16 Energy Service Contract
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(iv) regularly conduct vulnerability scanning, penetration testing, intrusion scanning, and other cybersecurity testing on its Systems; and
(v) meet the recommendations of ESCO's Recommended Cybersecurity Best Practices, available at httQ§.;}Lwww.se.comiys/en/download/goc1,1menV7EN52-0390/, as may be updated by ESCO from time to time, and then-current industry standards.
8.9.2. Customer's Use of the Deliverables. ESCO may release Updates and Patches for its Deliverables from time to time. Customer shall promptly install any Updates and Patches for such Deliverables as soon as they are available in accordance with ESCO's installation instructions and using the latest version of the Deliverables, where applicable. An "Update" means any software that contains a correction of errors in a Deliverable and/or minor enhancements or improvements for a Deliverable, but does not contain significant new features. A "Patch" is an Update that fixes a vulnerability in a Deliverable. Customer understands that failing to promptly and properly install Updates or Patches for the Deliverables may result in the Deliverables or Customer's Systems becoming vulnerable to certain Cyber Threats or result in impaired functionality, and ESCO shall not be liable or responsible for any losses or damages that may result.
8.9.3. Identification of Cyber Threats. If Customer identifies or otherwise becomes aware of any vulnerabilities or other Cyber Threats relating to the Deliverables for which ESCO has not released a Patch, Customer shall promptly notify ESCO of such vulnerability or other Cyber Threat(s) via the ESCO Report a Vulnerability page
(https://www.se.com/ww/en/work/suooorVcybersecurity/report-a-vulnerabiljJY.,jso#Pub!ic Agencies) and further provide ESCO with any reasonably requested information relating to such vulnerability (collectively, "Feedback"). ESCO shall have a non-exclusive, perpetual and irrevocable right to use, display, reproduce, modify, and distribute the Feedback (including any confidential information or intellectual property contained therein) in whole or part, including to analyze and fix the vulnerability, to create Patches or Updates for its Public Agencies, and to otherwise modify its Deliverables, in any manner without restrictions, and without any obligation of attribution or compensation to Customer; provided, however, ESCO shall not publicly disclose Customer's name in connection with such use or the Feedback (unless Customer consents otherwise). By submitting Feedback, Customer represents and warrants to ESCO that Customer has all necessary rights in and to such Feedback and all information it contains, including to grant the rights to ESCO described herein, and that such Feedback does not infringe any proprietary or other rights of third parties or contain any unlawful information.
Section 8.10. Notices.
8.10.1. General Requirements. Any and all demands and notices required or permitted to be given pursuant to this Agreement (each a "Notice") must be in writing and must be given or served in accordance with this Section 8.10.
8.10.2. Methods of Delivery. Each Notice must be sent via: (i) personal delivery, with the name and signature of the recipient obtained upon delivery: (ii) registered or certified United States mail, with postage prepaid and return receipt requested: (iii) FedEx, U.P.S. or other reliable, private delivery service, with the name and signature of the recipient obtained upon delivery; or (iv) electronic mail, with the reference line indicating that it is a "Notice Pursuant to Energy Service Contract", with confirmation of transmission from the sender's machine or device retained in the sender's files (a copy of which shall be provided to the recipient upon request), and with the original Notice deposited for delivery pursuant to clauses (ii) or (iii) above within 12 hours after electronic transmission. Neither Party may unreasonably refuse to accept delivery of any Notice in an attempt to avoid the giving or service of the Notice, and any such refusal by a Party shall be deemed and construed as a material breach of such Party's obligations pursuant to this Agreement.
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8. 10.3. Effect of Receipt. A Notice shall be deemed given or served only upon actual receipt by the addressee. In the case of electronic mail, "actual receipt" must be confirmed by a "Read Receipt" or other confirmation of receipt by the recipient. Notwithstanding the foregoing, if any Notice (including, without limitation, any Notice sent by electronic mail) is delivered after 4:00 p.m. on any weekday, on a weekend (Saturday or Sunday), on any federal or State of California holiday, or on any Customer furlough day mandated by the State of California or the Governing Body, the Notice shall be deemed to have been given or served as of 9:00a.m. on the next business day.
8.10.4. Applicability of Notice Requirements. The requirements of this Section 8.10 shall not be deemed or construed to apply to: (i) communications between Customer and/or ESCO necessary for day-to-day administration of this Agreement or performance of the Work; or (ii) service of process in accordance with any Applicable Law or court rule.
8.10.5. Contact Information; Changes. Notice must be addressed and delivered to a Party at the address set forth below. with attention to such Party's representative named below. A Party must give Notice, in accordance with this Section 8.10, of each change in such Party's address, person to whom attention should be directed, or e-mail address. If any such information applicable to a Party changes and such Party does not give Notice of such change, any subsequent Notices addressed and delivered based on such Party's prior contact information shall be deemed and construed to have been properly given or served in accordance with this Section 8.10, regardless of whether "actual receipt" has occurred.
Customer:
City of Anderson
1887 Howard St,
Anderson CA 96007 Attention: Adam Whelen
ESCO: Schneider Electric Buildings Americas, Inc.
1650 West Crosby Rd
Carrollton, TX 75006
Attention: Tammy Fulop
Section 8.11. Governing Law. This Agreement shall be governed by and interpreted in accordance with California law, regardless of any conflict-of-laws provisions applicable in California or any other jurisdiction.
Section 8.12. Claims and Dispute Resolution.
8.12.1. Informal Process. If a dispute arises out of or relates to this Agreement, the transaction contemplated by this Agreement, or the breach of this Agreement (a "Dispute"), either Party may initiate the dispute resolution process set forth in this Section 8.12 by giving notice to the other Party. Within fifteen (15) business days after notice of the Dispute, ESCO's senior project management personnel will meet with Customer's project representative in a good faith attempt to resolve the Dispute.
8.12.2. Claims Process Under Public Contract Code. In the event that a remedy acceptable to both Customer and ESCO cannot be found pursuant to Section 8.12.1, ESCO may commence the dispute resolution process set forth in California Public Contract Code §9204 et seq., which can be summarized as follows (the following is a summary only and is not intended to modify in any way the requirements and timeframes set forth in the statute):
(a) A "claim" means a separate demand by a contractor for one or more of the following: (i) a time extension, including, without limitation. for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project; (ii) payment by the public entity Form Last Updated: May 2024 18 Energy Service Contract
4080-1002 / 2441679.2
of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled; and (iii) payment of an amount that is disputed by the public entity. The claimant shall furnish reasonable documentation to support the claim.
(b) Upon receipt of a claim, the public entity shall conduct a reasonable review of the claim and shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. If the claimant disputes the public entity's written response, or if the public entity fails to respond to a claim within the time prescribed by statute, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute.
(c) Following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed.
Any payment due on an undisputed portion of the claim shall be processed and made in accordance with the statute. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally.
{d) Notwithstanding the foregoing, upon receipt of a claim, the Parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of binding arbitration, as set forth in Section 8.13.
Section 8.13. Arbitration. Customer and ESCO agree that if the claim or Dispute is not governed by, or cannot be resolved by the process set forth in, Public Contract Code §9204 et seq. and summarized in Section 8.12, the exclusive means to resolve the claim or Dispute will be arbitration pursuant to Public Contract Code §10240 et seq., and the provisions of Public Contract Code §20104 et seq. shall not apply.
Notwithstanding any other provision of law, arbitrators appointed for purposes of this Section 8.13 shall be experienced in construction law and shall be paid necessary and reasonable hourly rates not to exceed their customary rate. Such fees and expenses shall be paid equally by the Parties, except where the arbitrator, for good cause, determines a different division.
Section 8.14. Multiparty Proceeding. Either Party may join third parties whose joinder would facilitate complete resolution of the Dispute and matters arising from the resolution of the Dispute.
Section 8.15. Interpretation of Agreement.
8.15.1. Fair and Reasonable Interpretations. Prior to execution and delivery of this Agreement, each Party has received, or had unqualified opportunities to receive, independent legal advice from its legal counsel with respect to the advisability of executing this Agreement and the meaning of the provisions herein. Therefore, the provisions of this Agreement shall be construed based on their fair and reasonable meaning, and not for or against any Party based on whether such Party or its legal counsel was primarily responsible for drafting this Agreement or any particular provision herein.
8.15.2. Headings and Captions. The headings and captions set forth in this Agreement are for the convenience of the reader only and shall not be deemed or construed to establish, define or limit the meaning of any Article, Section or other provision herein.
8.15.3. Applicable Law Deemed Included. Each and every provision required by any Applicable Law to be included in this Agreement is hereby deemed to be so included, and this Agreement shall be Form Last Updated: May 2024 19 Energy Service Contract
4080-1002 / 2441679.2
construed and enforced as if all such provisions are so included. If, for any reason, any provision required by any Applicable Law is not expressly included herein, or is not correctly included herein, then, upon request of either Customer or ESCO, the Parties shall amend this Agreement to include or incorporate, or to correctly include or incorporate, such provision.
Without limiting the generality of the foregoing, the following provisions are hereby included at Customer's direction, to the extent legally required:
(a) Trenching. Pursuant to California Labor Code §6705, if the Work is a public work involving an estimated expenditure in excess of $25,000 and includes the excavation of any trench or trenches five (5) feet or more in depth, ESCO will, in advance of excavation, submit to Customer and/or a registered civil or structural engineer, employed by Customer, to whom authority to accept has been delegated, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches, which provisions will be no less effective than the current and applicable CAL-OSHA Construction Safety Orders. No excavation of such trench or trenches may be commenced until this detailed plan has been accepted by Customer or by the person to whom authority to accept has been delegated by Customer.
Pursuant to California Labor Code §6705, nothing in this Section 8.13.3(a) imposes tort liability on Customer or any of its employees.
(b) California Public Contract Code §7104. If the Work is a public work involving digging trenches or other excavations that extend deeper than four (4) feet below the surface of the ground:
(i) ESCO will promptly, and before the following conditions are disturbed, notify Customer, in writing, of any:
(1) Material that ESCO believes may be material that is hazardous waste, as defined in California Health and Safety Code §25117, that is required to be removed to a Class I, Class 11, or Class Ill disposal site in accordance with provisions of existing law; (2) Subsurface or latent physical conditions at the site differing from those indicated by information about the site made available to ESCO before the Effective Date; (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
(Ii) Customer will promptly investigate the conditions and, if it finds that the conditions do materially so differ or do involve hazardous waste, and cause a decrease or increase in ESCO's cost of, or the time required for, performance of any part of the Work will issue a Change Order under the procedures described in this Agreement. (iii) If a dispute arises between Customer and ESCO, whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in ESCO's cost of, or time required for, performance of any part of the Work, ESCO will not be excused from any scheduled completion date provided for by this Agreement but will proceed with all Work to be performed under this Agreement. ESCO will retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the Parties.
(c) [Lead-Based Paint. Pursuant to California Education Code §32244, no lead-based paint, lead plumbing and solders, or other potential sources of lead contamination will be utilized on this Project. Customer acknowledges and agrees that actions to abate existing risk factors for lead are expressly excluded from the Scope of Work, and ESCO will have no obligation to take any such abatement action.]
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20 Energy Service Contract
(d) [To the extent Customer is funding the Project or a portion of the Project with a Federal award, the "Contract Provisions for Non-Federal Entity Contracts Under Federal Awards" set forth under Appendix II to Part 200 of Title 2 of the Code of Federal Regulations are hereby incorporated in this Agreement and shall apply to such portion of the Project as if set forth in full herein.)
Section 8.16. Severability. If any provision of this Agreement is determined to be invalid, illegal, or unenforceable as written, such provision shall be construed consistent with and to the fullest extent permitted under Applicable Law, and any such determination shall not affect or impair the validity, legality and enforceability of the remaining provisions.
Section 8.17. Entire Agreement. This Agreement, together with the Contract Documents, constitutes the entire understanding and agreement between the Parties pertaining to the performance by ESCO of the services required by this Agreement, and all prior and contemporaneous agreements, representations and understandings of the Parties relating to such subject matter, whether oral or written, are hereby superseded and replaced.
Section 8.18. Modifications of Agreement. This Agreement may be amended or otherwise modified only by means of a written instrument duly approved, signed, and delivered by both Parties.
Section 8.19. Waiver. A waiver by a Party of any provision of this Agreement shall be binding only if the waiver is set forth in writing and has been duly approved and signed by the waiving Party. Unless so specified in the written waiver, a waiver by a Party of any provision of this Agreement shall not constitute a waiver of any other provision(s) herein, similar or not, and shall not be construed as a continuing waiver. Except as waived in accordance with this Section, a Party's failure to require performance of any requirement of this Agreement shall not, in any manner, affect the Party's right to enforce the same or any other provision of this Agreement at a later time.
Section 8.20. Successors and Assigns. Neither Party may assign this Agreement without the express written consent of the other Party, and any attempt to do so shall be null and void. Subject to the foregoing, this Agreement shall inure to the benefit of, and be binding on, the Parties' authorized successors and assigns.
Section 8.21. Third-Party Beneficiaries. The Parties have entered into this Agreement solely for their own purposes, and this Agreement shall not be deemed or construed to: (i) benefit any third party; (ii) create any right for any third party; or (iii) except as provided by law, provide a basis for any claim, demand, action or other proceeding by any third party.
Section 8.22. Agreement is Public Record. Subject to any legally permissible exceptions, this Agreement is a public record which Customer may disclose in accordance with California law.
Section 8.23. Execution of Agreement.
8.23.1. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one and the same instrument. Signature pages may be detached from counterpart originals and combined to physically form one or more copies of this Agreement having original signatures of both Parties.
8.23.2. Due Authority of Signatories. Each person signing this Agreement represents and warrants that he or she has been duly authorized by appropriate action of the Party he or she represents to execute, and thereby bind such Party to, this Agreement.
Form Last Updated: May 2024
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21 Energy Service Contract
Form Last Updated: May 2024
.:,S0-1002/-2441679,2
SIGNATURE PAGE TO FOLi.OW
22 Energy Service Contract
In Witness Whereof, the Parties have executed this Agreement as evidenced by the signatures of their authorized representatives below.
City of Anderson
By: ___________ _
Print Name: ___________ _
Print Title: ___________ _
Date Signed: __________ _
Form Last Updated: May 2024
408(>-1002 / 2441679.2
Schneider Electric Buildings Americas, Inc.
By: ___________ _
Print Name: ___________ _ Print Title: ____________ _
Date Signed: __________ _
Fed. Tax ID No: _________ _
23 Energy Service Contract
Exhibit A
Scope of Work - Due Diligence
1. Responsibilities
Customer Will:
A. Provide ESCO with all such access, knowledge and history as may be relevant to ESCO's analysis and/or design , including, without limitation:
(i) access to Customer's Facilities, systems and equipment. including remote network access, as necessary or appropriate to facilitate ESCO's analysis and design (i.e. enabling ESCO to take equipment inventory, determine operating schedules, evaluate known operational deficiencies, perform an energy efficiency analysis, measure actual energy use, etc.); (ii) access to key personnel to discuss operating requirements, maintenance practices, and other information relevant to ESCO's analysis;
(iii) information relating to any and all known or suspected deficiencies, defects and malfunctions of or affecting the Facilities, systems, equipment and components thereof; (iv) information relating to any site conditions that should be considered in planning and executing the construction services;
(v) twenty-six (26) months of electric, gas, and water data, including utility billings on meters for all premises and PG&E solar interconnection agreements owned by Customer; and B. Meet with ESCO to establish Project criteria and make Project decisions in a timely manner.
C. Promptly inform ESCO if at any point Customer becomes aware of any portions of scope that will not be included or funding that will not be available for final Project implementation.
ESCO Will:
A. Conduct site analysis including surveys, geotechnical analysis and other form of due diligence to further evaluate engineering and construction requirements B. Work with Customer to refine performance requirements, financial criteria, and Project scope.
C. Provide Customer a energy, and cost savings analysis demonstrating the simple ROI effect of project finances and operations.
D. Provide Customer a Net Present Value lifecycle financial analysis cash flow.
3.D.1 Provide an energy analysis report sufficient to demonstrate that the anticipated cost to Customer of the recommended project developed will be less than the anticipated marginal cost to Customer of thermal, electrical, operational or other energy that would have been consumed by Customer in the absence of the Project in accordance with Government Code section 4217 .10 et seq.
E. Provide Customer with a Project Proposal setting forth the following:
(i) Proposed Scope of Construction Work
(ii) Proposed Preliminary Construction Schedule
(iii) Proposed lump-sum Construction Fee
(iv) If applicable:
• A proposed form of Performance Assurance Support Services Agreement • A proposed Performance Guarantee Form Last Updated: May 2024
40801002 / 2441679.2
2 Energy Service Contract
• A proposed Measurement & Verification ("M&V") Plan
• A proposed schedule of Customer Responsibilities for Performance Guarantee
2. Phases of Due Diligence
The Scope of Work shall consist of two phases: initial and final development.
A Initial development
i. Scope of work includes a description of the, Energy Generation Measures (EGM) calculation of energy and operational savings, completion of project design including electrical and civil engineering required and plan for ordering of long-lead time equipment.
B. Final development
(i) ESCO shall provide Customer with a Project Proposal setting forth:
• A proposed final Scope of Construction Work (detailing any included ECMs, EGMs and/or FIMs);
• A proposed Preliminary Construction Schedule;
• The proposed Project Fee. • If applicable, any proposed energy and/or other operational savings guarantees.
3. Facilities Included
The Design Services will be performed in the following Customer facilities. Any additional facilities to be added in the future must be by mutual agreement between Customer and ESCO:
Form Last Updated: May 2024
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Facllltles
City of Anderson Wastewater Treatment Plant
3701 Rupert Rd, Anderson, CA 96007
3 Energy Service Contract
4. Preliminary Site Plan
Form Last Updated: May 2024
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4 Energy Service Contract
Exhibits
Preliminary Schedule - Due Diligence Phase of the Project Following is the preliminary schedule for the Due Diligence Phase. A firm development schedule will be developed and presented for acceptance by Customer once ESCO has discussed development requirements and timing with Customer.
Item Target Schedule
Customer approves selection of ESCO and to move forward with Project at February 4th, 2025 regularly scheduled Council Meeting.
Customer signs Energy Service Contract authorizing ESCO to proceed with February 4th, 2025 Due Diligence services ESCO and Customer conduct a Kick-Off Meeting (Virtual) February 6th, 2025 Initial Development Meeting February 2025
ESCO provides option to procure long-lead time material March 2025 Development Completion Meeting March 2025
Customer and ESCO complete negotiations of construction services scope and March 2025 pricing and iron out all details for the Council package.
Customer issues Notice to Proceed allowing ESCO to proceed with the April 2025 Construction Work A construction kick-off meeting is held to prepare for the Construction Phase. TBD Form Last Updated: May 2024 5 Energy Service Contract
4080-1002 / 2441679.2 •
Due Diligence Fee:
The "Due Diligence Fee" shall be: $30,000.
Form Last Updated: May 2024
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EXHIBITC
Due Diligence Fee
6 Energy Service Contract
AGENDA ITEM
Webruary 4, 2025, City Council Meetin~
esented By:
eth-Deshais, City Manager
To:
From:
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
Date: February 4, 2025
I SUBJECT
Discuss amending the Anderson City Council Procedures.
I RECOMMENDATION
Staff recommends the Council:
1. Discuss the proposed changes to the Anderson City Council Procedures.
2. Provide feedback and additional changes to be incorporated into the document. jFISCAL IMPACT
There is no fiscal impact.
I DISCUSSION and BACKGROUND
The City Council procedures were last updated in June of 2012. These procedures should be reviewed on a periodic basis to remain relevant and effective in governing the conduct of council meetings. After staff review of the procedures there are minor edits and proposed updates to create more clarity. A few of the proposed changes are the following.
Adoption of Rosenberg's Rules of Order
• Replace the existing Robert's Rules of Order with Rosenberg's Rules of Order as the procedural guide for parliamentary procedure. This is a simplified version of ITEM 8.3a PAGE1 2/4/2025
framework for meetings but still offers transparency and order without the complexity of Robert's Rules.
Chan2in2 the meetin2 start time.
• Adjust the regular City Council start time from 6:00pm to 5:30pm. This will reduce the amount of extended staff time between the end of their workday at 5:00pm and the current meeting start time. This change still allows for public participation in the meetings.
Update to Mayor and Vice-Mayor selection terms:
• Current procedures outline the Mayor and Vice-Mayor selection as a two-year term once selected by the Councilmembers. This was changed to a one-year term by a 4-1 vote of the Council on December 1, 2015, and needs to be incorporated into the updated procedures for consistency.
Other minor changes are proposed and have been incorporated into the draft Amended Council Procedures through track changes. The Council has the opportunity to make additional recommendations for changes or edits as necessary to help facilitate an effective, transparent, and efficient meeting.
I ATTACHMENT
1. Draft Amended Council Procedures
2. Rosenberg's Rules of Order
ITEM 8.3a PAGE2 2/4/2025
CITY COUNCIL PROCEDURES
A. Regular Meetings
Regular meetings are held in the Council Chambers of City Hall, 1887 Howard Street, Anderson, California. Regular meetings are scheduled for the first and third Tuesday evenings of each month or as otherwise established by resolution of the City Council in January of each calendar year. Regular meetings begin at 5·30 pm e:Q(l p.m. with closed sessions and workshops being convened either earlier or later as needed. N6 n1eeti11g '11111 IH• he-Id l-l~e-e\.'en-t llhl,.a,-t'guJa, mtoeftfttt-&f~~- ~I
B. Special Meetings
Special meetings may only be called by the..Ci.t)1..Mana&«. Mayor or by three members of the City Council. Written notice, unless waived, must be given to the City Council and to the media 24 hours prior to a special meeting (Cal Govt. Code Section 54956).
The call and notice of the meeting must be posted at least 24 hours prior to the meeting in a location freely accessible to members of the public. No business other than that announced may be discussed.
C. Adjourned Meetings/Continued Hearings
Meetings of the City Council may be adjourned from time to time, either to the time of the next regular meeting or to a time and place specified in the order of adjournment. Any hearing may be continued to any subsequent meeting of the City Council; but ifit is continued to a time Jess than 24 hours after the time specified in the order or notice of hearing, a copy of the order or notice of continuance shall be posted immediately following the meeting at which the hearing was continued.
D. Workshop or Study Sessions
The City Council may convene its own workshop or study sessions which are not designed to make decisions for the City, but are designed to train Council and staff, study various issues, and facilitate the exchange of information. Such workshops or study sessions may include the Planning Commission, staff members, consultants and others and shall comply with all of the requirements of the Ralph M. Brown Act.
E. Public Participation
F.
At all regular and special meetings, public comments must be permitted before or during consideration of any agendized item. Public comment is appropriate on any matter within the jurisdiction of the City Council.
Notice/Minutes
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Notice requirements of the Brown Act shall be complied with for all meetings; minutes of the meeting shall be taken by the City Clerk or designee and shall be available for public inspection.
G. Placing Items on Agenda
City Council: During the "Council Reports" portion of a meeting. a Council member may request an item be considered on a future agenda. If so directed by the Council, thCQY!lb majority vole. staff will prepare a staff report for the item and place it on a future agenda for Council consideration.
City Manager/City Attorney: Either the City Manager or the City Attorney may place matters on the agenda without special permission from the City Council.
Members of the Public: A member of the public may request an item be placed on a future agenda during the public comment period of a meeting or through other communication with Council members or with staff. If the City Council or City Manager consent, such item will be agendized.
Emeri:ency Items: Emergency and non-agendized items may be added to an agenda only in accordance with state law. Emergency items are only those matters affecting public health or safety, such as work stoppages, disasters and other severe emergencies. Meeting to consider an emergency situation requires a majority vote.
Emergency meetings are very rare.
Uri:ency Items: On occasion, after the agenda is posted, an item arises that the Council would like to act on. Non-agendized items may be added to the agenda only if the Council makes findings that (1) the need to consider the item arose after the posting of the agenda and (2) that there is a need to take immediate action at this meeting of the City Council. These findings must be approved by a 4/ 5 vote; if less than four members of Council are present, the findings require a unanimous vote of those present.
H. Tips on the Dais
Televised Meetini:s: City Council meetings are !iye strearned...Jhcoui:h the ..CW:.:S ~t@[email protected]@j~fhl~.eaii~f91E4E~11S+<Bn-~1m@! 1 . The City Council Chambers is equipped with a public address system. The system provides microphones at the dais, staff table, and podium. There are several issues related to the sound system which are important to keep in mind:
• When you want to talk, speak directly into the microphone. • Never say things near a microphone you do not want to be heard. • Have all speakers come forward to the podium. Do not allow people to speak from the audience.
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Certain colors of clothing present difficulties to the television system and, thus, can be distracting to viewers at home. White causes glare and makes the picture around it appear dark, causing loss of detail. Bright red and orange reproduce poorly on television and can also cause glare problems. Clothing with fine patterns, such as stripes and grids, can cause a rainbow effect in the picture that is extremely distracting.
Shiny objects that reflect light should be avoided. Good colors for television include blues, greens, browns, grays. and most pastels.
J. Order of Business
The City Council establishes the general order of meetings. This section summarizes each meeting component.
1. Proclamations, Recognitions, Presentations.
2. This is the time for Council proclamations, presentations, and for special recognition of persons, organizations, activities and events. Unless any Council member objects, in which case a vote is required, proclamations will be read aloud and considered adopted by consensus of the entire Council.
Public Participation.
a. Scheduled Citizens. Persons who have, by the deadline set for the agenda, requested to address the Council are usually given the opportunity to do so at this time. The subject they wish to discuss is identified on the agenda and any supporting materials are usually sent out with the agenda packets to the Council members. Each speaker is limited to one S,l-minute opportunity to speak, unless the Council makes an exception due to special circumstances. b. Public Comment on Non-Agendized Items. This is the time f9J: -~w w.e.rnbers of the public to address the Council on non-agendized matters.
Each speaker is limited to one 3-minute opportunity to speak, unless the Council makes an exception due to special circumstances. If the matter is expected to take more than~A-ve minutes, it should be moved to the end of the regular agenda._jmmooiawl.v,,~~siott-&f-ite~
fi'elfl the E9J\Sellt agMda. The purpose for this is to avoid inconveniencing those who have planned ahead and taken the necessary steps to have their issues properly agendized. Persons who wish to raise non-agendized items should be cautioned that in most cases the Brown Act pF9RieitsAct prohibits the Council from taking formal action on the item, but that they will be heard, and then the matter will be referred to staff for appropriate followup. c. Public Comment on Agendized Items. The Brown Act requires that the public be given the opportunity to address the Council on all matters on the agenda (matters to be discussed in either open or closed session, but not the ( Formatted: Not Highlight
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,
right to enter the closed sessions) before action is taken on those items. At the beginning of each meeting, the Mayor should inform persons in the audience that they are welcome to come forward to the podium and wait to be recognized if they wish to address the Council on any items under discussion. Each speaker is limited to one 3-minute opportunity to speak. unless the Council makes an exception due to special circumstances. d. Genera) Rules for Publjc Partjcjpatjon. No member of the public may be required to provide an address as a precondition to participation, but they may be invited to do so voluntarily. Dialogue between members of the public and Council members or staff should not be permitted. When a member of the public is speaking. other members of the public should not be permitted to interrupt or otherwise disrupt the speaker. Speakers may be directed not to use profanity or make personal attacks on Council members or staff, but speakers cannot be restricted from being critical of Council, staff or other public officials. They may not be prohibited from "criticizing the policies, procedures, programs or services of the City, or the acts or omissions" of City officials.
3. Approval/Correction of Minutes.
Minutes of the City Council meetings shall be submitted to the Council for approval and/or correction in draft form at a subsequent regular meeting. It is the policy of the City Council that only members of the Council and the City Clerk have the authority to make revisions to the minutes subject to a majority vote of the City Council. Council members having only typographical corrections to minutes are encouraged to provide such corrections to the City Clerk directly and need not wait to submit such corrections at a meeting.
4. Consent Calendar.
Those items on the Council agenda which are considered to be of a routine and non-controversial nature by the City Manager are placed on the "Consent Calendar." These items shall be approved, adopted, accepted, etc., by one motion of the Council. For example, final reading and adoption of ordinances, various resolutions approving agreements, minor budgetary items, status reports, and routine City operations are usually on the consent agenda.
Council members or members of the public may request that any item listed under "Consent Calendar" be removed from the Consent Calendar, and Council will then take action separately on this item. Items which are removed ("pulled") by members of the Council for discussion will typically be heard immediately following adoption of the Consent Calendar unless the Council chooses to move such items to a later place in the agenda.
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Minor questions: A Council member may ask questions on any item on the Consent Calendar. When a Council member has a minor question for clarification concerning a consent item which will not involve extended discussion, the question will be addressed before adoption of the Consent Calendar. Council members are encouraged to seek clarifications prior to the meeting, if possible.
No vote: When a Council member wishes to pull an item simply to register a dissenting vote, the Council member shall inform the presiding officer that he or she wishes to register a dissenting vote without discussion. This item will be handled along with the rest of the Consent Calendar, and the City Clerk will register this member's "no" vote in the minutes on this particular item even though such member then votes to approve the Consent Calendar. s. Public Hearings.
The City Council schedules "public hearings" from time to time on various issues, usually because of legal requirements that special opportunities be given to the public, or to certain segments of the public specially affected by the matter, to listen to the discussion and to provide input to the Council before a decision is made.
When a public hearing is scheduled, staff should be asked to present a staff report first, then the public hearing should be opened and the public should be invited to speak; then the public hearing should be closed and the matter returned to the Council for discussion and action.
Once the public hearing has been closed, persons from the audience should not be allowed to participate in the Council discussions unless in response to a specific question posed by a member of the Council to someone in the audience.
Although it is proper to do so, there is no legal requirement to structure the public hearing so that proponents of the measure or project speak first followed by those in opposition with a conclusion [or rebuttal) by the proponents.
However, if the Mayor or Council prefers to conduct the hearing in this manner, it may prove useful to do so when there are several different speakers and extended debate.
6. Rei:utar Business Items.
Regular items are shown on the agenda in the order they will be considered unless, before discussion of regular agenda items begins, a motion is made and passes which will change the order of the agenda to accommodate a request and to change the order of the agenda.
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7. Staff and Council Reports.
This time on the agenda provides members of the Council an opportunity to briefly discuss matters not specifically agendized including brief announcements, questions of staff, AB 1234 reports on attendance at reimbursed conferences/meetlnas and requests for items to be placed on the agenda at a future meeting. Examples of appropriate communications would be sharing of information of general interest received from outside agencies, sharing comments or inquiries received from individuals or from the public, raising requests to agendize future items, making reports of his or her own activities, or making announcements of general interest to the public.
State law provides that Council can take action only on such matters which have been noticed at least 72 hours in advance of a regular meeting or at least 24 hours in advance of a special meeting, unless special circumstances are found to exist (as mentioned above in Section G). Formal action or approval on nonagendized items is not allowed, and such items should normally be placed on the agenda of the next regular meeting, if formal Council action is required.
8. Closed Sessions.
The ability of a City Council to conduct sessions not open to the public is restricted by State law to ensure open proceedings. Certain defined circumstances exist wherein a City Council may meet without the public in attendance. Such circumstances include: a. Real Property: Closed sessions to discuss the purchase, sale, exchange, or lease of real property may be conducted. The location of the real property, the identities of the City's negotiator, and the person{s) with whom the City may negotiate must be announced in open session prior to the closed session (Cal Govt. Code Section 54956.8).
b. Litjiatjon: Closed sessions may be conducted to discuss pending litigation, a significant exposure to litigation, or the decision to initiate litigation. 1Lthe. ~n is pending t!J:he litigation or title must be identified in open session prior to the closed session unless the Council states that to do so would jeopardize its ability to conclude existing settlement negotiations or serve legal documents (Cal Govt. Code Section 54956.9). c. Compensation (salarjes and benefits) of employees: Closed sessions may be held to discuss employee compensation; to review the City's position and instruct designated representatives (Cal Govt. Code Section 54957.6). 1 2755.00000\6987690.1 .I'
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d. Personnel: Closed sessions are allowed to discuss the appointment, employment, evaluation of performance, dismissal of a public employee, or to hear complaints against the employee unless the employee requests a public hearing (Cal Govt. Code Section 54957).
Confidentiality: Members of the Council, employees of the City, or anyone else present shall not disclose to any person the content or substance of any discussion which takes place in a closed session unless authorized to do so by the Council.
Scheduling: Typically closed sessions will be scheduled after the public portions of the meeting. This is done so that public portions of the meeting are not interrupted by closed sessions.
Announcements: Prior to each closed session, the purpose of the closed session shall either be announced from the dais or by reference to the published agenda.
Immediately after each closed session, an announcement shall be made from the dais either (1) summarizing any reportable action taken in closed session or (2) stating that no reportable action was taken. When no reportable action was taken, it's advisable to announce the general nature of the business conducted in closed session to enhance public confidence in the process.
J. General Procedures of the Council
1. 2.
Mayor and Vice-Mayor; Election.
The Council shall select a Mayor and Vice-Mayor from its membership for IW&Qll.e•year terms by majority vote of the Council (at !east 3 votes). The election shall be held at the second Council meeting in December of each year with the new Mayor and Vice Mayor assuming their duties January 1 of the new year.~- Vacancies in such positions shall be filled by the Council in the same manner for the unexpired portion of the term.
Duties of Presiding Officer.
The Mayor is the presiding officer and acts as the Chair at all Council meetings.
In the absence of the Mayor, the Vice-Mayor serves as the presiding officer. The Mayor states every question coming before the Council before it takes action, announces the decision of the Council on each vote, maintains order during the meetings, conducts any public hearings, explains the purpose and order of the proceedings to the public in attendance, greets and thanks all participants and, J'2755.00000\~'!87699,I J
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3. 4.
6. with the assistance of the City Attorney, decides questions of order. The Mayor also makes any legally required announcements including, but not limited to, the announcements required by the Brown Act.
The Mayor appears at public functions to represent the City unless the Council designates another person to do so with regard to a specific event.
The Mayor has no independent authority to unilaterally make appointments to committees, commissions and other City positions, but only that authority which the Council from time to time confers upon the Mayor by formal action taken during Council meetings (see Section K regarding City Council appointments).
Seatimi Arrani:ement of the Council.
The Vice-Mayor is seated immediately next to the Mayor. The entire Council decides the remaining seating arrangements for its members in the event of any disagreements among members.
Signing of City Documents.
The Mayor, unless unavailable, shall sign all ordinances, resolutions, contracts, and other documents which have been adopted by the City Council and require an official signature, except in those cases where the City Manager or another individual has been specifically authorized by Council action to sign particular documents. In the event the Mayor is unavailable., the Vice-Mayor is authorized to sign on behalf of the City in his or her place.
Three-fifths of the Council members constitutes a quorum for the transaction of business.
Distribution of Agenda and Written Materials.
At least 72 hours prior to regular meetings of the Council [and 24 hours prior to any special meetings], an agenda must be posted which contains a brief general description of each item to be transacted or discussed at the Council meeting.
Copies of that agenda will be mailed before each meeting to each Council member and to members of the public and the press who have requested to receive copies.
Writings which are public records distributed during Council meetings shall be made available to the public in attendance at that same meeting, if such documents were prepared by City staff or City officials. If prepared by some other person, copies of such documents will be made available following the 1}2755.00000\6987690.1 J3
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meeting. A reasonable fee may be charged to offset the actual cost of making such copies.
7. Closed Session Procedures and Announcements.
Prior to any closed session, the Mayor or his or her designee shall generally describe the subjects to be discussed in such session or shall refer the public to the numbered item on the agenda which describes the subject.
At the conclusion of each closed session, the Council shall reconvene and the Mayor shall announce any final decisions made on subjects required to be reported or, if there are no such subjects, shall generally describe what the Council did in closed session without compromising the integrity and confidentiality of what was discussed.
Council members, outside of closed session, shall not inform others about the content of any closed session discussions or decisions unless required to do so by court order or provisions of law.
B. Discussion and Yotini: Rules.
Discussion:
a. Obtaining the Hoor: A member of the City Council or staff shall first address the Mayor and gain recognition. Comments and questions should be limited to the issue before the Council. Direct exchanges between Council members and members of the public seated in the audience should be avoided.
Members of the public should not be allowed to directly question staff members in attendance, but all such questions should be addressed through the Mayor for response.
b. Questions of staff: The Mayor, or any member of the Council upon being recognized by the Mayor, may..di.r«E~_questions to a Ry member &f the s~aff wl10 is iri aneREla~+.the City Mana11ec to then either be an~:»'fff<I by the City Manaeer the staff or det:eccrd to iather addjtiona] informatjon Staff members responding to Council questions should, whenever time permits, come forward to the staff table or podium for response. This not only provides a proper example for members of the public in attendance, but also allows the microphones to be used properly in televising the proceedings.
c. Interruptions: Once recognized, a Council member should not be interrupted while speaking. except to make a point of order or personal privilege. If a Council member is called to order while speaking. the individual should cease speaking until the question of order is determined.
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d. Tabling procedures: A motion to table immediately stops discussion and causes a vote to postpone the matter indefinitely or to a date and time certain.
e. Procedures used for motions: Rose.n.ben:•s~ules of Order Rebt't:t'~t>s."9f Ofde.r-are hereby adopted as the rules of parliamentary procedure for conducting City Council meetings.
f. Requirement to vote: All Council members present, who are not abstaining, are required to vote. It shall be the duty of the recording clerk to ensure that a vote is taken on every matter requiring formal action and that each and every non-abstaining member actually casts a vote, which such clerk then records in the minutes of the meeting.
g. Requirement of a second: A second is required on all matters before they can proceed to a vote. If no second is received, the motion dies for lack of a second. Seconding a motion does not indicate or imply that the member doing so will vote in favor of the motion. It simply allows the matter to be discussed and proceed to a vote.
h. Motions and votes by presiding officer: The presiding officer, whether it be the Mayor or Vice-Mayor or any other member of the Council, is allowed to make and second motions and to cast votes in the same manner as any other member of the Council.
i. Roll call votes: Any member of the Council may request that a matter being voted on be handled by roll call vote. Upon such a request being made. the clerk shall poll the Council and record the votes being cast. j. Right of protest: A Council member is never required to state the reason for a dissenting vote.
k. Disqualification and abstention from voting: Members of the Council are required to vote on all matters coming before the entire Council for a vote, unless an individual member chooses to abstain or is disqualified due to a conflict of interest as defined in the City's "Conflict of Interest Code." If a member has a question whether or not he or she has a conflict, he or she should discuss that issue with the City Attorney or seek advice from the Fair Political Practices Commission before the meeting whenever time permits. If a member abstains due to a conflict of interest or potential conflict of interest, he or she shall, immediately before the matter is considered:
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(1) publicly state the specific nature of the conflict in enough detail to be understood by the public (disclosure of exact street address of Council member's home or business is not required);
(2) recuse himself or herself from discussing or voting on the matter; and (3) leave the room until after the discussion, vote or other disposition of the matter is concluded, unless the matter is on the nconsent Agenda" (except that such official may speak on the issue from the floor during the time that the general public speaks on the issue).
1. Tie votes: A tie vote is equivalent to a vote which has failed.- A tie vote to grant or approve something doesn·t represent consent nor does it represent denial of permission to act. It leaves the status unchanged and, if the proponent of the action requires permission to move forward, he or she has simply failed to obtain it.
On the other hand, a tie vote to deny or disapprove something doesn't represent either approval or denial. It also leaves the situation unchanged and, if the proponent of the action requires permission to move forward. he or she has again failed to obtain it.
If a tie vote occurs on an appeal of an action coming up from the Planning Commission, the appeal has neither been granted nor denied. Since the status quo is unchanged, the end result is the equivalent of a denial of the appeal since the appellant in order to overturn the action taken by the Planning Commission must obtain some action at Council level. A tie vote is the equivalent of no action, except insofar as it satisfies the legal requirement that the matter be presented to the Council for consideration.
If a tie vote occurs with the fifth member of the Council absent from the meeting and not due to the abstention of such member, the matter will automatically be continued until the next Council meeting when such member can be present to cast a vote unless there is a time limit imposed by law, which precludes such a continuance.
m. Public participation following a motion: Public participation in the discussion should be avoided in most cases after a motion has been made, unless it is specifically invited by a member of the Council.
9. Consensus Motions. Resolutions and Ordinances.
a. Consensus.
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10. staff without taking a formal vote. Proclamations are considered to be adopted by consensus without a vote unless any member of the Council requests a vote be conducted.
Most actions of the City Council may be taken by motion on a voice vote.
Except for ordinances, resolutions, and orders for the payment of money, motions pass upon the affirmative vote of a majority of the members voting.
For example, if two members are absent or abstain from voting, a 2·1 vote is sufficient to adopt most motions.
c. Resolutions.
Resolutions are a more formal way of memorializing actions of the City Council. A resolution, rather than a motion, is only necessary when required by law. Unless a higher vote is legally required, all resolutions must be passed by at least three affirmative votes. Condemnation resolutions require the affirmative vote of at least four members.
d. Ordinances.
With the exception of urgency matters, ordinances cannot be adopted until at least five days following their introduction and can only be adopted at a regular City Council meeting. Changes to an ordinance once introduced, except for minor clerical changes, require the ordinance to be reintroduced and at least five more days to pass before adoption. Ordinances require the affirmative vote of at least three Council members. Ordinances do not have to be read in full at the time of introduction or adoption [they may be read by "short titlew onlyJ if the Council votes to read only the title. The Council usually votes to do so as one of the items on its ·consent Calendar." Ordinances become effective 30 days after their adoption except for urgency ordinances, ordinances relating to elections, street improvement proceedings, taxes and certain other ordinances which take effect immediately.
Rules for Hearin11:s.
a. I.egis!atjve Matters.
When the Council has a "legislative" matter before it, the individual Council members may investigate the issue before the meeting, discuss the matter with whomever they wish and, if they consider it politically expedient, even announce their •position• on the issue before the meeting of J12755.00000\6987690,I .12
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the entire Council. They, of course, cannot seek a consensus on the issue before the meeting by contacting a majority of the other members of the Council (either personally or by contacting one and, in turn, having that one contact another ("serial meetings")).
b. Ouasi-Iudicja) Matters.
When the matter coming before the Council is of a "quasi-judicial" nature (i.e. appeals from Planning Commission matters), the individual members of the Council may discuss such matters with proponents, opponents, or others before the meeting, but must report any such discussions or "ex parte communications" at the meeting at which the matter is considered.
Similarly, if any Council member receives information outside of the meeting by means other than discussions with interested parties, which such member will take into account in making a decision, he or she must report that information to the rest of the Council in public during the discussion period.
If findings are required to be made, Council members should be careful to declare precisely what evidence they have considered which allows them to make the required findings. In doing so, they can refer to information in the staff report and adopt that information as a part of their motion. However, they should keep in mind that the staff report was prepared prior to the public hearing and that new information not previously known to staff may come out during the hearing. Council may rely on staff to outline what findings are required to be made to support a particular motion, but the Council itself is responsible to state on the record what facts it has considered which supports each of the required findings.
K. City Council appointments to Committees, Commissions and Advisory Boards In order to facilitate the efficient conduct of City business and to represent the City to other agencies, the City Council participates in, or appoints representatives to, many different committees, commissions, and advisory boards. Unless otherwise provided by the bylaws or policies of individual committees, commissions, and advisory boards, the Council will adhere to the following general guidelines concerning appointments to these committees, commissions and boards.
1. Annually in lanuary~lbef. the City Council will meet to consider appointments to committees, commissions and advisory boards that may be necessary during the coming year.
2. Recruitment for public members to serve on committees, commissions and advisory boards shall be conducted in accordance with Government Code l3Z7SS.00000\6987690.1 J 3 .,
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Section 54974 when a vacancy occurs, unless specific recruitment procedures are outlined in the individual committee, commission or board bylaws.
Notwithstanding, the City Council may, if it finds an emergency exists, fill any unscheduled vacancy immediately. A person appointed to fill the vacancy shall serve only on an acting basis until the final appointment is made.
3. Appointments of City Council members to serve on committees, commissions, or advisory boards shall be consistent with the bylaws or policies of the individual committee, commission, or advisory board. In the event no such bylaws or policies exist, appointments shall be concurrent with the Councilmember's current term of office,~-fe ---af\4.~by 1-he--Councilov&Ey WJO yean; If it is in the best interest of the City, the Council may extend the appointment for additional terms. All appointees, whether Council members or public members, shall serve at the pleasure of the City Council.
4. Appointments to committees, commissions or advisory boards, whether City Council or public members, shall be made by motion and majority vote of the City Council. Should there be more public member applicants than positions available, the Council will select the appointee based on criteria and procedures to be determined as appropriate at the time.
S. The Mayor's Selection Committee, consisting of the mayors of all three cities in Shasta County, meets annually in January to fill certain committee and commission positions of regional interest. The City Council, at its annual review ift-i.D. ,meetjne .W:.. ~ Qeeember, will consider and make recommendations to the Mayor for positions to be filled at the annual Mayor's Selection Committee meeting.
6. As required by State law and the City's Conflict of Interest Code, an appointee may be required to disclose certain financial information on a Statement of Economic Interests form and/or advise the Council of any potential conflict of interest which may arise if he/she is appointed. The City Clerk will provide appointees with forms and instructions following their appointment. Those appointees who are required to file must file these forms within 30 days of appointment.
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Rosenberg's Rules of Order
REVISED 2011
Simple Rules of Parliamentary Procedure for the 21st Century By Judge Dave Rosenberg
MISSION AND CORE BELIEFS
To expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians.
VISION
To be recognized and respected as the leading advocate for the common interests of California's cities.
About the League of California Cities
Established in 1898, the League of California Cities is a member organization that represents California's incorporated cities.
The League strives to protect the local authority and automony of city government and help California's cities effectively serve their residents. In addition to advocating on cities' behalf at the state capitol, the League provides its members with professional development programs and information resources, conducts education conferences and research, and publishes Western City magazine.
0 201 I ungr~ of California Cities. All rig/JIS reserved.
ABOUT THE AUTHOR
Dave Rosenberg is a Superior Court Judge in Yolo County. He has served as presiding judge of his court, and as presiding judge of the Superior Court Appellate Divi$ion. He also has served as chair of the Trial Court Presiding Judges Advisory Committee (the committee composed of all 58 California presiding judges) and as an advisory member of the California Judicial Council. Prior to his appointment to the bench, Rosenberg was member of the Yolo County Board of Supervisors, where he served two terms as chair. Rosenberg also served on the Davis City Council, including two terms as mayor. He has served on the senior staff of two governors, and worked for I 9 years in private law practice. Rosenberg has served as a member and chair of numerous state, regional and local boards. Rosenberg chaired the California St.ite Lottery Commission, the California Victim Compensation and Government Claims Board, the Yolo-Solano Air Quality Management District, the Yolo County Economic Development Commission, and the Yolo County Criminal Justice Cabinet. For many years, he has taught classes on parliamentary procedure and has served as parliamentarian for large and small bodies.
H
TABLE OF CONTENTS
Aboutthe Author ............................................................................................................ ii Introduction .......................... ..................................................................... ..................... 2 Establishing a Quorum ............................. ...................................................................... 2 The Role o( the Chair ...................................................................................................... 2 The Basic Format for an Agenda Item Discussion ···········································-········· 2 Motions in General ···················-··················-····················-·········-··························3 The Three Basic Motions ........................... -................................................................... 3 Multiple Motions Before the Body ................................................... .............................. 4 To Debate or Nor to Debatc ................................................... ......................................... 4 Majority and Super•Majority Votes .... ..................... ........................................ .............. 5 Counting Votcs ................................................................................................................ S The Motion to Reconsider .......................................................... ·-·····················-·······6 Courtesy and Decorum -···-·························-······ ....................................................... 7 Special Notes About Public Input .................................................................................. 7
INTRODUCTION
The rules of procedure at meetings should be simple enough for most people to understand. Unfortunately, that has not always been the case. Virtually all clubs, associations, boards, councils and bodies follow a set of rules- Robert's Rules of Order - which are embodied in a small, but complex, book. Virtually no one I know has actually read this book cover to cover. Worse yet, the book was written for another time and for another purpose. If one is chairing or running a parliament, then Robert's Rules of Order is a dandy and quite useful handbook for procedure in that complex setting. On the other hand, if one is running a meeting of say, a five-member body with a few members of the public in attendance, a simplified version of the rules of parliamentary procedure is in order.
Hence, the birth of Rosenberg's Rules of Order.
What follows is my version of the rules of parliamentary procedure, based on my decades of experience chairing meetings in state and local government. These rules have been simplified for the smaller bodies we chair or in which we participate, slimmed down for the 21st Century, yet retaining the basic tenets of order to which we have grown accustomed. Interestingly enough, Rosenberg's Rules has found a welcoming audience. Hundreds of cities, counties, special districts, committees, boards, commissions, neighborhood associations and private corporations and companies have adopted Rosenberg's Rules in lieu of Robert's Rules because they have found them practical, logical, simple, easy to learn and user friendly.
This treatise on modern parliamentary procedure is built on a foundation supported by the following four pillars:
1. Rules should establish order. The first purpose of rules of parliamentary procedure is to establish a framework for the orderly conduct of meetings.
2. Rules should be clear. Simple rules lead to wider understanding and participation. Complex rules create two classes: those who understand and participate; and those who do not fully understand and do not fully participate.
3. Rules should be user friendly. That is, the rules must be simple enough that the public is invited into the body and feels that it has participated in the process.
4. Rules should enforce the will of the majority while protecting the rights of the minority. The ultimate purpose of rules of procedure is to encourage discussion and to facilitate decision making by the body. In a democracy, majority rules. The rules must enable the majority to express itself and fashion a result, while permitting the minority to also express itself, but not dominate, while fully participating in the process.
1. Establishing a Quorum
The starting point for a meeting is the establishment of a quorum.
A quorum is defined as the minimum number of members of the body who must be present at a meeting for business to be legally transacted. The default rule is that a quorum is one more than half the body. For example, in a five-member body a quorum is three.
When the body has three members present, it can legally transact business. If the body has less than a quorum of members present, it cannot legally transact business. And even if the body has a quorum to begin the meeting, the body can lose the quorum during the meeting when a member departs ( or even when a member leaves the dais). When that occurs the body loses its ability to transact business until and unless a quorum is reestablished.
The default rule, identified above, however, gives way to a specific rule of the body that establishes a quorum. For example, the rules of a particular five-member body may indicate that a quorum is four members for that particular body. The body must follow the rules it has established for its quorum. In the absence of such a specific rule, the quorum is one more than half the members of the body.
The Role of the Chair
While all members of the body should know and understand the rules of parliamentary procedure, it is the chair of the body who is charged with applying the rules of conduct of the meeting. The chair should be well versed in those rules. For all intents and purposes, the chair makes the final ruling on the rules every time the chair states an action. In fact, all decisions by the chair are final unless overruled by the body itself.
Since the chair runs the conduct of the meeting, it is usual courtesy for the chair to play a less active role in the debate and discussion than other members of the body. This does not mean that the chair should not participate in the debate or discussion. To the contrary, as a member of the body, the chair has the full right to participate in the debate, discussion and decision-making of the body. What the chair should do, however, is strive to be the last to speak at the discussion and debate stage. The chair should not make or second a motion unless the chair is convinced that no other member of the body will do so at that point in time. The Basic Format for an Agenda Item Discussion Formal meetings normally have a written, often published agenda.
Informal meetings may have only an oral or understood agenda. In either case, the meeting is governed by the agenda and the agenda constitutes the body's agreed-upon roadmap for the meeting. Each agenda item can be handled by the chair in the following basic format:
Fim, the chair should dearly announce the agenda item number and should dearly state what the agenda item subject is. The chair should then announce the format (which follows) that will be followed in considering the agenda item.
Second, following that agenda format, the chair should invite the appropriate person or persons to report on the item, including any recommendation that they might have. The appropriate person or persons may be the chair, a member of the body, a staff person, or a committee chair charged with providing input on the agenda item. 111ird, the chair should ask members of the body if they have any technical questions of clarification. At this point, members of the body may ask clarifying questions to the person or persons who reported on the item, and that person or persons should be given time to respond.
Fourth, the chair should invite public comments, or if appropriate at a formal meeting, should open the public meeting for public input.
If numerous members of the public indicate a desire to speak to the subject, the chair may limit the time of public speakers. At the conclusion of the public comments, the chair should announce that public input has concluded (or the public hearing, as the case may be, is closed).
Fifth, the chair should invite a motion. The chair should announce the name of the member of the body who makes the motion.
Sixth, the chair should determine if any member of the body wishes to second the motion. The chair should announce the name of the member of the body who seconds the motion. It is normally good practice for a motion to require a second before proceeding to ensure that it is not just one member of the body who is interested in a particular approach. However, a second is not an absolute requirement, and the chair can proceed with consideration and vote on a motion even when there is no second. This is a matter left to the discretion of the chair.
Seventh, if the motion is made and seconded, the chair should make sure everyone understands the motion.
This is done in one of three ways:
1. The chair can ask the maker of the motion to repeat it;
2. The chair can repeat the motion; or
3. The chair can ask the secretary or the clerk of the body to repeat the motion.
Eighth, the chair should now invite discussion of the motion by the body. If there is no desired discussion, or after the discussion has ended, the chair should announce that the body will vote on the motion. If there has been no discussion or very brief discussion, then the vote on the motion should proceed immediately and there is no need to repeat the motion. If there has been substantial discussion, then it is normally best to make sure everyone understands the motion by repeating it.
3 Ninth, the chair takes a vote. Simply asking for the "ayes" and then asking for the "nays" normally does this. If members of the body do not vote, then they "abstain." Unless the rules of the body provide otherwise (or unless a super majority is required as delineated later in these rules), then a simple majority (as defined in law or the rules of the body as delineated later in these rules) determines whether the motion passes or is defeated.
Tenth, the chair should annou nee the result of the vote and what action (if any) the body has taken. In announcing the result, the chair should indicate the names of the members of the body, if any, who voted in the minority on the motion. This announcement might take the following form: "The motion passes by a vote of 3-2, with Smith and Jones dissenting. We have passed the motion requiring a I O•day notice for all future meetings of this body."
Motions in General
Motions are the vehicles for decision making by a body. It is usually best to have a motion before the body prior to commencing discussion of an agenda item. This helps the body focus.
Motions are made in a simple two-step process. First, the chair should recognize the member of the body. Second, the member of the body makes a motion by preceding the member's desired approach with the words "I move ... "
A typical motion might be: "I move that we give a IO-day notice in the future for all our meetings."
The chair usually initiates the motion in one of three ways:
I. Inviting the members of the body to make a motion, for example, "A motion at this time would be in order."
2. Suggesting a motion to the members of the body, "A motion would be in order that we give a 10-day notice in the future for all our meetings."
3. Making the motion. As noted, the chair has every right as a member of the body to make a motion, but should normally do so only if the chair wishes to make a motion on an item but is convinced that no other member of the body is willing to step forward to do so at a particular time.
The Three Basic Motions
There are three motions that are the most common and recur often at meetings:
The basic motion. The basic motion is the one that puts forward a decision for the body's consideration. A basic motion might be: "I move that we create a five-member committee to plan and put on our annual fundraiser."
The motion to amend. If a member wants to change a basic motion that is before the body, they would move to amend it. A motion to amend might be: "I move that we amend the motion to have a 10-member committee." A motion to amend takes the basic motion that is before the body and seeks to change it in some way.
The substitute motion. If a member wants to completely do away with the basic motion that is before the body, and put a new motion before the body. they would move a substitute motion. A substitute motion might be: "I move a substitute motion that we cancel the annual fund raiser this year."
"Motions to amend" and "substitute motions" are often confused, but they are quite different, and their effect ( if passed) is quite different.
A motion to amend seeks to retain the basic motion on the floor, but modify it in some way. A substitute motion seeks to throw out the basic motion on the tloor, and substitute a new and different motion for it. The decision as to whether a motion is really a "motion to amend" or a "substitute motion" is left to the chair. So if a member makes what that member calls a ''motion to amend," but the chair determines that it is really a "substitute motion;' then the chair's designation governs.
A "friendly amendment" is a practical parliamentary tool that is simple, informal, saves time and avoids bogging a meeting down with numerous formal motions. It works in the following way: In the discussion on a pending motion, it may appear that a change to the motion is desirable or may win support for the motion from some members. When that happens, a member who has the floor may simply say, "I want to suggest a friendly amendment to the motion." The member suggests the friendly amendment, and if the maker and the person who seconded the motion pending on the floor accepts the friendly amendment, that now becomes the pending motion on the floor. If either the maker or the person who seconded rejects the proposed friendly amendment, then the proposer can formally move to amend.
Multiple Motions Before the Body
There can be up to three motions on the floor at the same time.
The chair can reject a fourth motion until the chair has dealt with the three that are on the floor and has resolved them. This rule has practical value. More than three motions on the floor at any given time is confusing and unwieldy for almost everyone, including the chair.
When there are two or three motions on the floor (after motions and seconds) at the same time, the vote should proceed first on the last motion that is made. For example, assume the first motion is a basic "motion to have a five-member committee to plan and put on our annual fundraiser." During the discussion of this motion, a member might make a second motion to "amend the main motion to have a 10-member committee, not a five-member committee to plan and put on our annual fundraiser." And perhaps, during that discussion, a member makes yet a third motion as a "substitute motion that we not have an annual fundraiser this year." The proper procedure would be as follows:
First, the chair would deal with the third (the last) motion on the floor, the substitute motion. After discussion and debate, a vote would be taken first on the third motion. If the substitute motion passed, it would be a substitute for the basic motion and would eliminate it. The first motion would be moot, as would the second motion (which sought to amend the first motion), and the action on the agenda item would be completed on the passage by the body of the third motion (the substitute motion). No vote would be taken on the first or second motions.
Second. if the substitute motion failed, the chair would then deal with the second (now the last) motion on the floor, the motion to amend. The discussion and debate would focus strictly on the amendment (should the committee be five or 10 members). If the motion to amend passed, the chair would then move to consider the main motion (the first motion) as amended. If the motion to amend failed, the chair would then move to consider the main motion (the first motion) in its original format, not amended.
Third, the chair would now deal with the first motion that was placed on the floor. The original motion would either be in its original format (five-memher committee), or if amended, would be in its amended format {10-member committee). The question on the floor for discussion and decision would be whether a committee should plan and put on the annual fundraiser.
To Debate or Not to Debate
The basic rule of motions is that they are subject to discussion and debate. Accordingly, basic motions, motions to amend, and substitute motions are all eligible, each in their turn, for full discussion before and by the body. The debate can continue as long as members of the body wish to discuss an item, subject to the decision of the chair that it is time to move on and take action.
There are exceptions to the general rule of free and open debate on motions. The exceptions all apply when there is a desire of the body to move on. The following motions are not debatable ( that is, when the following motions are made and seconded, the chair must immediately call for a vote of the body without debate on the motion):
Motion to adjourn, This motion, if passed, requires the body to immediately adjourn to its next regularly scheduled meeting. It requires a simple majority vote.
Motion to recess. This motion, if passed, requires the body to immediately take a recess. Normally, the chair determines the length of the recess which may be a few minutes or an hour. It requires a simple majority vote.
Motion to fix the time to adjourn. This motion, if passed, requires the body to adjourn the meeting at the specific time set in the motion. For example, the motion might be: "I move we adjourn this meeting at midnight." It requires a simple majority vote.
Motion to table. This motion, if passed, requires discussion of the agenda item to be halted and the agenda item to be placed on "hold." The motion can contain a specific time in which the item can come back to the body. "I move we table this item until our regular meeting in October." Or the motion can contain no specific time for the return of the item, in which case a motion to take the item off the table and bring it back to the body will have to be taken at a future meeting. A motion to table an item ( or to bring it back to the body} requires a simple majority vote.
Motion to limit debate. The most common form of this motion is to say, "I move the previous question" or "I move the question" or "I call the question" or sometimes someone simply shouts out "question." As a practical matter, when a member calls out one of these phrases, the chair can expedite matters by treating it as a "request" rather than as a formal motion. The chair can simply inquire of the body, "any further discussion?" If no one wishes to have further discussion, then the chair can go right to the pending motion that is on the floor.
However, if even one person wishes to discuss the pending motion further, then at that point, the chair should treat the call for the "question" as a formal motion, and proceed to it.
When a member of the body makes such a motion ("I move the previous question"), the member is really saying: "I've had enough debate. Let's get on with the vote." When such a motion is made, the chair should ask for a second, stop debate, and vote on the motion to limit debate. The motion to limit debate requires a two•thirds vote of the body.
NOTE: A motion to limit debate could include a time limit. For example: "I move we limit debate on this agenda item to 15 minutes." Even in this format, the motion to limit debate requires a two· thirds vote of the body. A similar motion is a motion to object to consideration of an item. This motion is not debatable, and if passed, precludes the body from even considering an item on the agenda. It also requires a two.thirds vote.
Majority and Super Majority Votes
In a democracy, a simple majority vote determines a question. A tie vote means the motion fails. So in a seven-member body, a vote of
4.3 passes the motion. A vote of 3.3 with one abstention means the motion fails. If one member is absent and the vote is 3·3, the motion still fails.
All motions require a simple majority, but there are a few exceptions.
The exceptions come up when the body is taking an action which effectively cuts off the ability of a minority of the body to take an action or discuss an item. These extraordinary motions require a two-thirds majority (a super majority) to pass:
Motion to limit debate. Whether a member says, "I move the previous question," or "I move the question," or "I call the question," or "I move to limit debate:' it all amounts to an attempt to cut off the ability of the minority to discuss an item, and it requires a two-thirds vote to pass.
Motion to close nominations. When choosing officers of the body (such as the chair), nominations are in order either from a nominating committee or from the floor of the body. A motion to close nominations effectively cuts off the right of the minority to nominate officers and it requires a two•thirds vote to pass.
Motion to object to the consideration of a question. Normally, such a motion is unnecessary since the objectionable item can be tabled or defeated straight up. However, when members of a body do not even want an item on the agenda to be considered, then such a motion is in order. It is not debatable, and it requires a two-thirds vote to pass.
Motion to suspend the rules. This motion is debatable, but requires a two•thirds vote to pass. If the body has its own rules of order, conduct or procedure, this motion allows the body to suspend the rules for a particular purpose. For example, the body (a private club) might have a rule prohibiting the attendance at meetings by non.club members. A motion to suspend the rules would be in order to allow a non-club member to attend a meeting of the club on a particular date or on a particular agenda item.
Counting Votes
The matter of counting votes starts simple, but can become complicated.
Usually, it's pretty easy to determine whether a particular motion passed or whether it was defeated. If a simple majority vote is needed to pass a motion, then one vote more than 50 percent of the body is required. For example, in a five.member body, if the vote is three in favor and two opposed, the motion passes. If it is two in favor and three opposed, the motion is defeated.
If a two-thirds majority vote is needed to pass a motion, then how many affirmative votes are required? The simple rule of thumb is to count the "no" votes and double that count to determine how many "yes" votes are needed to pass a particular motion. For example, in a seven-member body, if two members vote "no" then the "yes" vote of at least four members is required to achieve a two-thirds majority vote to pass the motion.
What about tie votes? ln the event of a tie, the motion always fails since an affirmative vote is required to pass any motion. For example, in a five-member body, if the vote is two in favor and tw·o opposed, with one member absent, the motion is defeated.
Vote counting starts to become complicated when members vote "abstain" or in the case of a written ballot, cast a blank ( or unreadable) ballot. Do these votes count, and if so, how does one count them? The starting point is always to check the statutes.
In California, for example, for an action of a board of supervisors to be valid and binding, the action must be approved by a majority of the board. (California Government Code Section 25005.) Typically, this means three of the five members of the board must vote affirmatively in favor of the action. A vote of 2-1 would not be sufficient. A vote of 3-0 with two abstentions would he sufficient. ln general law cities in California, as another example, resolutions or orders for the payment of money and all ordinances require a recorded vote of the total members of the city council. (California Government Code Section 36936.) Cities with charters may prescribe their own vote requirements. Local elected officials are always well-advised to consult with their local agency counsel on how state law may affect the vote count.
After consulting state statutes, step number two is to check the rules of the body. If the rules of the body say that you count votes of"those present" then you treat abstentions one way. However, if the rules of the body say that you count the votes of those "present and voting," then you treat abstentions a different way. And if the rules of the body are silent on the subject, then the general rule of thumb (and default rule) is that you count all votes that are "present and voting:• Accordingly, under the "present and voting" system, you would NOT count abstention votes on the motion. Members who abstain are counted for purposes of determining quorum (they are "present"), but you treat the abstention votes on the motion as if they did not exist ( they are not "voting"). On the other hand, if the rules of the body specifically say that you count votes of those "present" then you DO count abstention votes both in establishing the quorum and on the motion. In this event, the abstention votes act just like "no" votes.
How does this work in practice?
Here are a few examples.
Assume that a five-member city council is voting on a motion that requires a simple majority vote to pass, and assume further that the body has no specific rule on counting votes. Accordingly, the default rule kicks in and we count all votes of members that are ''present and voting." If the vote on the motion is 3-2, the motion passes. If the motion is 2-2 with one abstention, the motion fails.
Assume a five-member city council voting on a motion that requires a two-thirds majority vote to pass, and further assume that the body has no specific rule on counting votes. Again, the default rule applies.
If the vote is 3-2, the motion fails for lack of a two-thirds majority. If the vote is 4-1, the motion passes with a clear two-thirds majority. A vote of three "yest one "no" and one "abstain" also results in passage of the motion. Once again, the abstention is counted only for the purpose of determining quorum, but on the actual vote on the motion, it is as if the abstention vote never existed - so an effective 3-1 vote is clearly a two-thirds majority vote.
Now, change the scenario slightly. Assume the same five-member city council voting on a motion that requires a two-thirds majority vote to pass, but now assume that the body DOES have a specific rule requiring a two-thirds vote of members "present." Under this specific rule, we must count the members present not only for quorum but also for the motion. In this scenario, any abstention has the same force and effect as if it were a "no" vote. Accordingly, if the votes were three "yes," one "no" and one "abstaint then the motion fails. The abstention in this case is treated like a "no" vote and effective vote of 3-2 is not enough to pass two-thirds majority muster.
6 Now, exactly how does a member cast an "abstention" vote? Any time a member votes "abstain" or says, "I abstain;' that is an abstention. However, if a member votes "present" that is also treated as an abstention (the member is essentially saying, "Count me for purposes of a quorum, but my vote on the issue is abstain.") In fact, any manifestation of intention not to vote either "yes" or "no" on the pending motion may be treated by the chair as an abstention. If written ballots are cast, a blank or unreadable ballot is counted as an abstention as well.
Can a member vote "absent" or "count me as absent?" Interesting question. The ruling on this is up to the chair. The better approach is for the chair to count this as if the member had left his/her chair and is actually "absent." That, of course, affects the quorum. However, the chair may also treat this as a vote to abstain, particularly if the person does not actually leave the dais.
The Motion to Reconsider
There is a special and unique motion that requires a bit of explanation all by itself; the motion to reconsider. A tenet of parliamentary procedure is finality. After vigorous discussion, debate and a vote, there must be some closure to the issue. And so, after a vote is taken, the matter is deemed closed, subject only to reopening if a proper motion to consider is made and passed.
A motion to reconsider requires a majority vote to pass like other garden-variety motions, but there are two special rules that apply only to the motion to reconsider.
First, is the matter of timing. A motion to reconsider must be made at the meeting where the item was first voted upon. A motion to reconsider made at a later time is untimely. (The body, however, can always vote to suspend the rules and, by a two-thirds majority, allow a motion to reconsider to be made at another time.)
Second, a motion to reconsider may be made only by certain members of the body. Accordingly, a motion to reconsider may be made only by a member who voted in the majority on the original motion. If such a member has a change of heart, he or she may make the motion to reconsider ( any other member of the body - including a member who voted in the minority on the original motion - may second the motion). If a member who voted in the minority seeks to make the motion to reconsider, it must be ruled out of order. The purpose of this rule is finality. If a member of minority could make a motion to reconsider, then the item could be brought back to the body again and again, which would defeat the purpose of finality.
If the motion to reconsider passes, then the original matter is back before the body, and a new original motion is in order. The matter may be discussed and debated a.~ if it were on the floor for the first time.
Courtesy and Decorum
The rules of order are meant to create an atmosphere where the members of the body and the members of the public can attend to business efficiently, fairly and with full participation. At the same time, it is up to the chair and the members of the body to maintain common courtesy and decorum. Unless the setting is very informal, it is always best for only one person at a time to have the floor, and it is always best for every speaker to be first recognized by the chair before proceeding to speak.
The chair should always ensure that debate and discussion of an agenda item focuses on the item and the policy in question, not the personalities of the members of the body. Debate on policy is healthy, debate on personalities is not. The chair has the right to cut off discussion that is too personal, is too loud, or is too crude.
Debate and discussion should be focused, but free and open. In the interest of time, the chair may, however, limit the time allotted to speakers, including members of the body.
Can a member of the body interrupt the speaker? The general rule is "no." There are, however, exceptions. A speaker may be interrupted for the following reasons:
Privilege. The proper interruption would be, "point of privilege.~ The chair would then ask the interrupter to "state your point." Appropriate points of privilege relate to anything that would interfere with the normal comfort of the meeting. For example, the room may be too hot or too cold, or a blowing fan might interfere with a person's ability to hear.
Order. The proper interruption would be, "point of order." Again, the chair would ask the interrupter to "state your point." Appropriate points of order relate to anything that would not be considered appropriate conduct of the meeting. For example, if the chair moved on to a vote on a motion that permits debate without allowing that discussion or debate.
7 Appeal. If the chair makes a ruling that a member of the body disagrees with, that member may appeal the ruling of the chair. If the motion is seconded, and after debate, if it passes by a simple majority vote, then the ruling of the chair is deemed reversed.
Call for orders of the day. This is simply another way of saying, "return to the agenda." If a member believes that the body has drifted from the agreed-upon agenda, such a call may be made. It does not require a vote, and when the chair discovers that the agenda has not been followed, the chair simply reminds the body to return to the agenda item properly before them. If the chair fails to do so, the chair's determination may be appealed.
Withdraw a motion. During debate and discussion of a motion, the maker of the motion on the floor, at any time, may interrupt a speaker to withdraw his or her motion from the floor. The motion is immediately deemed withdrawn, although the chair may ask the person who seconded the motion if he or she wishes to make the motion, and any other member may make the motion if properly recognized.
Special Notes About Public Input
The rules outlined above will help make meetings very publicfriendly. But in addition, and particularly for the chair, it is wise to remember three special rules that apply to each agenda item:
Rule One: Tell the public what the body will be doing. Rule Two: Keep the public informed while the body is doing it.
Rule Three: When the body has acted, tell the public what the body did.
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AGENDA ITEM
!February 4, 2025, City Council Meeting/
d for Submittal By:
ented By:
To:
From:
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
Date: February 4, 2025
I SUBJECT
Attendance at International Council of Shopping Centers (ICSC) Monterey
I RECOMMENDATION
The City Manager recommends the City Council:
Provide direction on the attendance of ICSC Monterey, March 24-26, 2025
1. Do we want to attend ICSC Monterey March 24-26, 2025?
2. Who should attend? Traditionally this has been the City Manager and two City Councilmembers.
I FISCAL IMPACT
The fiscal impact is the cost of registration, lodging and travel.
I DISCUSSION and BACKGROUND
For years economic development has been a City Council priority. One of the tools that we have used is to attend the International Council of Shopping Centers (ICSC) conventions and market the City of Anderson to prospective retailers and developers. It also allows us to educate ourselves on market trends and direction, so we can make good decisions related to development in our City.
ITEM 8.3b PAGE1 2/4/2025
ICSC is a member organization for industry advancement, ICSC promotes and elevates the marketplaces and spaces where people shop, dine, work, play and gather as foundational and vital ingredients of communities and economies. City staff and Council have attended both the Las Vegas and Monterey conferences in past years. The ability to attend one of these again in 2025 to continue our understanding of the retail marketplace can be highly beneficial. Attendance in the past has been the City Manager, or the City Manager and two City Council members.
ITEM 8.3b PAGE2 2/4/2025
AGENDA ITEM
!February 4, 2025, City Council Meeting
Approved for Submittal By:
Joey Forseth-Deshais, City Manager
To: Honorable Mayor and Adam Whelen, Public Works Director Members of the Anderson City Council
Through:
From:
Joey Forseth-Deshais, City Manager
Adam Whelen, Public Works Director
Date: February 04, 2025
I SUBJECT
River Trail Storm Damage Rehabilitation Project - Authorization to Award
I RECOMMENDATION
The Public Works Director recommends that the City Council:
1. Award the River Trail Storm Damage Rehabilitation Project contract to Tullis Inc. for $494,800.00.
2. Authorize the City Manager to execute the contract upon receipt of the required insurance certificates, payment bond, and performance bond.
3. Authorize the Public Works Director to approve change orders not to exceed 20% of the bid amount.
I FISCAL IMPACT
The Engineers Estimate was $510,000.00 to repair the damage associated with the storm events between February 1, 2017, and February 23, 2017. These costs are eligible for reimbursement at the rate of 75% from the federal government and 18.75% from the state.
This project has been submitted and accepted by FEMA as an eligible project. The other ITEM 8.9a PAGE1 2/04/2025
6.25% will be funded by the City's Park Capitol Improvement Fund. The total fiscal impact is estimated to be $593,760.00. The Cities portion of this cost will be $37,110.00.
I DISCUSSION and BACKGROUND
On March 19, 2017, Governor Brown requested a major disaster declaration due to severe winter storms, flooding, and mudslides during the period of February 1-23, 2017. The Governor requested a declaration for Public Assistance for 42 counties and Hazard Mitigation statewide. On April 1, 2017, President Trump declared that a major disaster existed in the State of California. This declaration made Public Assistance requested by the Governor available to state and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and repairing or replacing facilities damaged by the severe winter storms.
Anderson River Park sustained substantial damage during the high-water events on the Sacramento River associated with the February storm events. The park sustained some of the most severe damage to the paved trail between the Sacramento River and the Amphitheater pond. Approximately 580 feet of the paved trail was washed away, and the levy between the river and the pond sustained severe erosion. Due to the environmentally sensitive location of the trail, reconstruction will require, at a minimum, permits from the Army Corp of Engineers, Regional Water Quality, and Fish and Wildlife.
On March 2Qlh, 2018, the City issued a request for proposals from qualified consultants to perform the work associated with the project. Initially, three firms were interested and attended a project site visit. Subsequently, two firms declined to give proposals due to their workload. VESTRA Resources submitted a proposal. They are a well-regarded local environmental and engineering firm with which the City has previously worked.
The City Council approved the contract on May 10th, 2018. VESTRA began working on plans and environmental surveys.
An addendum was issued for a required archaeological survey report on August 18th, 2020. City staff has been diligently working with VESTRA to complete the necessary environmental review and permit documents as requested by FEMA.
On July 28th, 2021, VESTRA and City staff met to identify possible construction design and schedule interruptions. The design was split into two phases to streamline the US Fish and Wildlife environmental review.
On November 2nd, 2021, the City Council approved authorization to bid based on the plans and specifications from VESTRA. The City did not receive environmental approval during the 2021-2022 winter construction period.
On October 18th, 2022, the City Council approved authorization to bid based on the plans and specifications from VESTRA. The City did not receive environmental approval during the 2022-2023 winter construction period.
ITEM 8.9a PAGE2 2/04/2025
Staff did not bring this before the City Council for authorization to bid during 2023, and the city did not receive environmental approval during the 2023-2024 winter construction period.
The City received environmental approval in December of 2024 and approval from FEMA.
USFWS, and the Army Corps of Engineers.
At the November 14, 2024, City Council meeting, staff was directed to advertise the project for bid. The project was advertised on January 03, 2025, on Virtual-Bid. Sealed bids were opened on January 29, 2025, in the City Council Chambers, and the lowest responsible bidder was Tullis Inc., with an apparent low bid of $494,800.00. jATTACHMENT
1. Bid Summary
2. Title Sheet
ITEM 8.9a PAGE3 2/04/2025
City of Anderson
BID SUMMARY
ITEM ITEM DESCRIPTION ESTIMATED UNIT OF
NO QUANTITY MEASURE Unit Price Item Total Total Unit Price Item Total Total Unit Price Item Total Total Unit Price Item Total Total Unit Price Item Total Total Unit Price Item Total Total Unit Price Item Total Total Unit Price Item Total Total Av erage:
1 IMPLEMENT STRAW BALE
BARRIER 1 LS $26,000.00 $26,000.00 $8,000.00 $8,000.00 $32,127.00 $32,127.00 $20,000.00 $20,000.00 $15,000.00 $15,000.00 $11,000.00 $11,000.00 $50,000.00 $50,000.00 $18,430.00 $18,430.00 $16,531.75 2 CLEARING AND GRUBBING
(LS) 1 LS $32,700.00 $32,700.00 $20,000.00 $20,000.00 $38,529.00 $38,529.00 $35,000.00 $35,000.00 $20,000.00 $20,000.00 $5,100.00 $5,100.00 $5,500.00 $5,500.00 $22,080.00 $22,080.00 $22,807.25 3 IMPORT BORROW 1135 CY $99.00 $112,365.00 $112,365.00 $85.00 $96,475.00 $96,475.00 $398.00 $451,730.00 $451,730.00 $155.00 $175,925.00 $175,925.00 $87.00 $98,745.00 $98,745.00 $115.00 $130,525.00 $130,525.00 $148.00 $167,980.00 $167,980.00 $118.00 $133,930.00 $133,930.00 $165,142.50 4 ECO-BLOCK PROCURE &
PLACEMENT 180 EA $556.00 $100,080.00 $100,080.00 $210.00 $37,800.00 $37,800.00 $616.00 $110,880.00 $110,880.00 $500.00 $90,000.00 $90,000.00 $640.00 $115,200.00 $115,200.00 $300.00 $54,000.00 $54,000.00 $486.00 $87,480.00 $87,480.00 $460.00 $82,800.00 $82,800.00 $62,190.00 5 FABRIC WRAPPED GRAVEL
SUBBASE 86 CY $221.00 $19,006.00 $19,006.00 $225.00 $19,350.00 $19,350.00 $1,563.00 $134,418.00 $134,418.00 $350.00 $30,100.00 $30,100.00 $560.00 $48,160.00 $48,160.00 $285.00 $24,510.00 $24,510.00 $318.00 $27,348.00 $27,348.00 $240.00 $20,640.00 $20,640.00 $43,193.50 6 CLASS 2 AGGREGATE BASE 98.5 CY $240.00 $23,640.00 $23,640.00 $230.00 $22,655.00 $22,655.00 $1,486.00 $146,371.00 $146,371.00 $280.00 $27,580.00 $27,580.00 $325.00 $32,012.50 $32,012.50 $274.00 $26,989.00 $26,989.00 $236.00 $23,246.00 $23,246.00 $289.00 $28,466.50 $28,466.50 $48,166.50 7 MINOR CONCRETE
(SIDEWALK) 5308 SF $11.45 $60,776.60 $60,776.60 $11.25 $59,715.00 $59,715.00 $29.00 $153,932.00 $153,932.00 $13.00 $69,004.00 $69,004.00 $8.00 $42,464.00 $42,464.00 $9.00 $47,772.00 $47,772.00 $21.00 $111,468.00 $111,468.00 $13.00 $69,004.00 $69,004.00 $68,605.90 8 RSP (CALTRANS METHOD
A) ½ TON WITH 1-TON BASE 500 CY $168.00 $84,000.00 $84,000.00 $164.00 $82,000.00 $82,000.00 $541.00 $270,500.00 $270,500.00 $185.00 $92,500.00 $92,500.00 $230.00 $115,000.00 $115,000.00 $405.00 $202,500.00 $202,500.00 $210.00 $105,000.00 $105,000.00 $196.00 $98,000.00 $98,000.00 $109,125.00 9 RSP FABRIC (CLASS 8) 390 SY $10.00 $3,900.00 $3,900.00 $12.00 $4,680.00 $4,680.00 $5.00 $1,950.00 $1,950.00 $14.00 $5,460.00 $5,460.00 $4.00 $1,560.00 $1,560.00 $20.00 $7,800.00 $7,800.00 $8.00 $3,120.00 $3,120.00 $15.00 $5,850.00 $5,850.00 $2,632.50 10 RSP PLANTING(77 WILLOW
CUTTINGS)
& FINAL EROSION CONTROL
HYDROSEEDING
0.5 AC $40,000.00 $20,000.00 $20,000.00 $38,250.00 $19,125.00 $19,125.00 $69,450.00 $34,725.00 $34,725.00 $40,000.00 $20,000.00 $20,000.00 $30,000.00 $15,000.00 $15,000.00 $46,000.00 $23,000.00 $23,000.00 $41,000.00 $20,500.00 $20,500.00 $50,575.00 $25,287.50 $25,287.50 $18,462.50 11 MOBILIZATION 1 LS $5,000.00 $5,000.00 $50,000.00 $50,000.00 $34,727.00 $34,727.00 $8,000.00 $8,000.00 $40,000.00 $40,000.00 $5,000.00 $5,000.00 $71,000.00 $71,000.00 $5,150.00 $5,150.00 $22,431.75 12 TRAIL DAMAGE
ALLOWANCE 1 LS $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $562,467.60 $494,800.00 $1,409,889.00 $648,569.00 $618,141.50 $613,196.00 $747,642.00 $584,638.00 CITY OF ANDERSON Anderson River Park Trail Rehabilitation Project Sunrise Excavating Inc. Tullis Inc Outback Constructors, Inc. RTA Construction Inc Stimpel-Wiebelhaus Associates Inc TOTAL:
Giles Excavating Inc. Hooker Creek Inc. Zeis Construction Inc.
Location: Anderson City Hall
Bid Opening: 01/29/2025 2:00PM
------- ------- ----- ----- -- -- ------- -- ------- ------- ----- ----- -- -- ------- -- - - - - - - - - ------- ------- ----- ----- -- -- ------- -- SACRAMENTO RIVER RUPERT ROAD DODSON LANE AREA OF WORK ANDERSON RIVER TRAIL CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE / CITY OF ANDERSON STORM DAMAGE REHABILITATION GENERAL NOTES 1. ALL CONSTRUCTION SHALL BE IN ACCORDANCE WITH THESE DRAWINGS AND ATTACHED SPECIFICATIONS. 2. CAL-OSHA SAFETY REQUIREMENTS SHALL BE IN EFFECT DURING ALL CONSTRUCTION. 3. BENCHMARK TO BE PROVIDED TO CONTRACTOR PRIOR TO START OF CONSTRUCTION. 4. BORROW MATERIAL MAY BE AVAILABLE AT PARK AT LOCATION DETERMINED BY CITY. ALTERNATIVELY IMPORT BORROW MAY BE REQUIRED. BID ITEM FOR EACH OPTION INCLUDED. OF 5300 AVIATION DRIVE ~ REDDING, CA 96002
www.vestra.com
(530) 223-2585
FAX (530) 223-1145
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IF NOT ONE INCH ON
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SCALES ACCORDINGLY VERIFY SCALES TITLE SHEET
ANDERSON RIVER TRAIL REHABILITATION
CITY OF ANDERSON
ANDERSON, CA
SG
CDS
SG 71815 10/18/2021 31 INDEX TO SHEETS 1. TITLE SHEET 2. PLAN VIEW, SECTIONS & DETAILS 3. RSP PHOTOGRAPHS & DETAILS SHA ST A COUNTY b Castel la SHASTA COUN1Y I 0 Fall River Mills Antlers Burney 89 i§ 299 Fr ench Gulch en 299 Whit more PROJECT CALIFORNIA Igo . Viola >- m Cottonwood