Agenda packet — Beaumont City Council, August 16, 2022 (part 2 of 2)

282
Item 13.

Matich Proposal (Cont'd)
Accepted by:Date:

Page 2 of 2 ends

283
Item 13.

FAX:Phone: (951) 279-6832(951) 279-6869
1345 QUARRY STREET, #101, CORONA, CA 92879
Email:

W.M. LYLES CO. (951) 698-3031Fax:

Quote Date:

VEILE AVE & 4TH ST, BEAUMONT
5260
DIR# 1000005295Lic. No. 720016 A
We propose to furnish you labor and material in strict accordance with the plans and specifications as follows:

WILLIE ELLIS
TEMECULA CA 92590
42142 ROICK DRIVE Phone:

To:

From:

Quote :

SALT MITIGATION UPGRADE
04/14/2022

PROPOSAL & CONTRACT
[email protected]:
(951) 973-7393
Estimating Dept:[email protected]

PROPOSAL SUMMARY
04 CLARIFICATION 52 $5,932.50
Total Proposal Price:$5,932.50
Unit PriceU/MQuantityDescription Total PriceItem No.

CLARIFICATION 52
LFCONSTRUCT 6" 'D' CURB04 1 $79.10 $5,932.5075.00
$5,932.50Total for:CLARIFICATION 52
$5,932.50Total Proposal Price:

STANDARD CONDITIONS
CONSTRUCT 6" CURB PER CLAR-52.1
THIS PROPOSAL INCLUDES SHORT LOAD & AB-219 FEES.2
4 MAN CREW, 8 HOURS, INCLUDES MOBILIZATION.3
Accepted by:Date:

Page 1 of 1 ends

A
21118
284
Item 13.

Memorandum
To: City of Beaumont

From: Reed Chilton, Albert A. Webb Associates

Date: July 29, 2022

Re: Beaumont MBR Replacement – COP 71 Huber Fine Screens Replacement

From the very startup of the fine screening system, it was observed that unusual quantities of fibrous material were collecting between the screening drum ridges. The material appeared to be fibrous in nature and not typical for raw municipal wastewater. It was speculated that the fibrous material is generated from an upstream industrial source. To avoid overloading the capacity of screens, the plant staff was manually pressure washing the screens several times a day. While effective, this activity was a burden for the staff as well as a potential safety hazard. AQUA and the City worked with the screening manufacturer (HUBER) to come up with a solution that would minimize the manual cleaning of screens.

Based on Huber’s experiences with facilities that process wastewater with larger industrial contributors, it was determined that an addition of an automatic high pressure washing system is the recommended modification.

Also, several months into operation, damage to one of the screen drums was discovered. The cause of the damage was due to the increased maintenance requirements and manual cleaning of the screens.

The damage extent was such that it required replacement of one of the screen panels. This effort required an installation of a replacement panel by a Huber technician and assistance from the contractor.

This issue was presented to City Council and a budget of $150,000 was approved based on estimates from Huber. The actual cost for Huber was $142,975.73. The Contractor assisted Huber with the repair of one fine screen basket and with the installation of 2 new high-pressure sprayers inside the fine screen enclosures. The Contractor’s work was performed on a Time and Materials basis. The scope of work and pricing was reviewed by the construction management and design team.

The total cost to the project was $21,296.55.

Attachments:
- COP 71

285
Item 13.

Page 1 of 2 ends

CITY OF BEAUMONT WWTP SALT MITIGATION UPGRADE PROJECT

CHANGE ORDER PROPOSAL (COP) #071
(By Contractor)

To (Engineer/CM):

WEBB
Attention: Reed Chilton
Phone: 951-830-5746
Email: [email protected]
From (Contractor):

W.M. Lyles Co.

Attention: Sean MacGregor
Phone: 951-201-1832
Email: [email protected]

PCO/DCM No.: N/A
Subject: Huber Fine Screen Repair & Spray Bar Addition Support – T&M Reference Documents: Attached

DESCRIPTION
This Change Order Proposal for Time and Materials is for work performed to assist Huber technicians with the repair one fine screen basket and with the installation of 2 new high-pressure sprayers inside the fine screens enclosures.

COST ESTIMATE
Total Cost: $ 21,296.55– see attached breakdown.

SCHEDULE IMPACT
N/A
Received by WEBB (Date):
286
Item 13.

Page 2 of 2 ends

RESPONSE

Response By: Date:

Final Distribution: Grant Gourley, W.M. Lyles Co.

Brian Knoll, Webb Associates
WEBB Inspector
287
Item 13.

W. M. Lyles Co.
42142 Roick Drive Date: 3-May-22
Temecula, CA 92590
Reference #: N/A
Attention: Reed Chilton
JOB LOCATION: City of Beaumont WWTP Slat Mitigation Upgrade Project DESCRIPTION: Huber - Fine Screens Repair - T&M
Item: Unit Total MHTotal MH Cost Eq. Cost Material Subcont. Total Cost 1 LS 166 14,973.94$ 2,054.01$ 377.88$ 1,018.56$ 18,424.39$ 2 LS 0 -$ -$ -$ -$ -$ 3 LS 0 -$ -$ -$ -$ -$ 4 LS 0 -$ -$ -$ -$ -$ 5 LS 0 -$ -$ -$ -$ -$ 6 LS 0 -$ -$ -$ -$ -$ Total Costs 166 14,973.94$ 2,054.01$ 377.88$ 1,018.56$ 18,424.39$ Subtotal
15%
15%
15%
5%
Bond 1.0%
Total This Change Order
Comments:
-

56.68$
18,424.39$
Mark-up - Labor
Mark-up - Equipment
Mark-up - Materials
2,246.09$
308.10$
Mark-up - Subcontractor 50.93$
210.35$
21,296.55$
Huber - Fine Screens Repair - T&M
-
-
-
-
288
Item 13.

City of Beaumont WWTP Slat Mitigation Upgrade Project

A. Labor

ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT 10 15 39 ##79.5 15
10 ##0 15 0 0 39 8 0 79.5 15 0 0 0 0 0 0 0 0 0 0
Name ST PT DT ST PT DT
Lab Pipe FM $82.92 $110.44 $137.96 10 0 0
Lab Pipe $80.30 $106.51 $132.73 15 0 0
Carp FM $89.66 $120.68 $151.72 39 7.5 0
Carp $85.74 $114.80 $143.87 80 15 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
144 22.5 0
Total Labor =
B. Equipment
Number Description Rate

18.311 39

15.198 11

18.311 8

32.037 4

17.236 3
0 64
Total Equipment =
C. Materials
Quantity Unit
1 LS
1 LS

8.750%
Trucking
Total Material =
D. Subcontractor
Quantity Unit
1 LS
Total Subcontract =
Description
McMaster Carr 58.02$ $58.02
Extension
$1,018.56
$0.00
$0.00
$0.00
$1,018.56
Southern
$377.88
Price
$1,018.56
Tax
Freight
$29.51

11.13$
Top-Line Receipt $279.22
$0.00
Hours
Price
279.22$
Extension
Extension
$1,109.94
$422.18
$213.45
$234.44
$28.46
$58.61
$28.46
$38.38
$2,054.01
$74.00$29.60
$0.00

7.5 04 3 0

17.236

2.5 32.037
4 11

18.311
8 39

15.198
11 $14,973.94

18.311
39 $0.00
$14,973.94
$1,204.50
$4,402.01
$8,538.26
$0.00
$0.00
$0.00
Rate Hours
Extension
$829.16
Lab Pipe FM Lab Pipe Carp FM Carp
Fine Screens Repair Assistance for Huber
Fine Screens Repair Assistance for Huber
ReachliftXtremeXR1055
1/2 Ton PickupFordF150 Ext Cab
F350 CrewSVC Body
Gang TruckDodge5500
F350 CrewSVC Body
Description
289
Item 13.

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Item 13.

Change Order Request
103801 — Wastewater Treatment Plant Salt Mitigation
Upgrade
COR Subject: Screens Huber - OT
T&M
To Juan C. Ahumada
W.M. Lyles
42142 Roick Drive
Temecula, CA 92590
951-973-7393
Return To Dan Alcantar
Southern Contracting Company
760-744-0760x621
619-778-0681
[email protected]
Contract No: 55.1173
COR Number: 103801-COR#035
COR Revision Number: 0
COR Date: 5/3/2022
Work Type: Field Work Order /
T&M
Days Valid: 5
Scope Of Work / Time Extension Request
The work associated with the Overtime spent on the Fine Screens - Huber is a change to Southern Contracting Company's scope of work in which a change in Contract Price and Time is to be considered.

Accordingly, Southern Contracting Company requests a Contract Change Order in the amount of $1,018.56 Scope of Work is as follows:
- Provide Supervision, Labor, Forman Truck to support the Fine Screens / Huber work after regular working hours.

Forman $155.29 X 2h = $310.58
Electrician $131.21 X 4h = $524.84
Truck $25.14 X 2h = $50.28
Sub Total = $885.70
15% = $132.86
Total = $1,018.56
Long Lead Items:

VFD MBR 6 - 18 to 20 weeks
Exclusions: Materials, Set up of network and SCADA updates, programming, concrete, concrete pads, dry pack, digging, backfill, surface restoration.
300
Item 13.

Change in time: NA
Southern Contracting reserves all rights to additional costs and time for changes not identified in the documents furnished, and is not responsible for additional costs or time for work which is not part of our contract scope of work, unless stipulated above. Should additional information or clarification be required, please contact me at your convenience.

Summary
Total: $1,018.56
Reservation of Rights
This COR does not include any amount for impacts such as interference, disruptions, rescheduling, changes in the sequence of work, delays and/or associated acceleration. We expressly reserve the right to submit our request for any of these items.

Signed By:Dated: 5/3/2022
Daniel Alcantar
PM
301
Item 13.

302Item 13.

1 Oscar Mendoza
From:Oscar Mendoza
Sent:Friday, January 28, 2022 8:17 AM
To:'Kristine Day'; Boris Petkovic; Brian Knoll; Justin Logan; Thaxton VanBelle; Charles Reynolds; Kevin Lee
Subject:RE: Plant wrap up items
Hi Kristine,

Please see responses below. Thanks,

Oscar Mendoza | Project Manager
W. M. LYLES CO. | Southern Division
42142 Roick Dr. | Temecula, CA 92590
O 951-973-7393 | C 619-565-6064
www.wmlyles.com

-----Original Message-----
From: Kristine Day
Sent: Friday, January 28, 2022 7:55 AM
To: Boris Petkovic ; Brian Knoll ; Justin Logan
; Thaxton VanBelle ; Charles Reynolds
; Oscar Mendoza ; Kevin Lee

Subject: Plant wrap up items

Good morning all,
Just wanting to check in on a few items for the plant project-

1. Where are we with GEA? Seems the emails have dropped off. This one seems super critical and a whole hot mess! Andrew with GEA will be onsite today to assess all the issues. Kyle or Myself will be there later today to meet with him. I've invited Robert Sperry to attend Monday's 8am meeting to discuss findings and plan of action.

2. Where are we on the additional road paving quote/design? I am waiting on the Clarification to price 3. Where are we with Huber and the spray bar/screen repair? Spray bar - WML has installed all the equipment per Clarification. We are waiting on direction from Huber as to when they will be onsite to install spray bar and perform repair. WML anticipates to support the Fine Screens repair operation under T&M. Last I heard was that Elemec will be shipping the LCP late next month and Huber will be coming onsite shortly after, but no actual set date.

4. Oscar- talked to Brian about the WQMP. Brian can you give Oscar an idea on timing since he would like to release the SWPPP.

Noted

5. Perm Pump 3- any response from Fibracast?
Not as of yet. I will reach out to Chuck today again 6. Saw an email on the chemical pumps having an issue- what’s the resolution.

Chemical pump piping has been repair; however, Ponton recommended not to run the pumps again until the piping inside the panel has heat strip or insulated panel to avoid crystallization. I believe Mark and Boris are working on a solution.

Thanks!
303
Item 13.

2 Kristine Day
City of Beaumont
Assistant City Manager
304
Item 13.

Memorandum
To: City of Beaumont

From: Reed Chilton, Albert A. Webb Associates

Date: July 29, 2022

Re: Beaumont MBR Replacement – COP 72 RO Chemical Vent and Drain

The RO system chemical addition skids included several connections that need to be vented and simultaneously may produce nuisance liquids. Due to the location of the chemical tank farm, it was not feasible to provide a return line to the storage tanks. Therefore, small 5-gallon double containment tanks were installed below the individual skids to collect and store the nuisance liquids that may be generated during the operations.

The Contractor’s work was performed on a Time and Materials basis. The scope of work and pricing was reviewed by the construction management and design team.

The total cost to the project was $13,126.25.

Attachments:
- COP 72
305
Item 13.

Page 1 of 2 ends

CITY OF BEAUMONT WWTP SALT MITIGATION UPGRADE PROJECT

CHANGE ORDER PROPOSAL (COP) #072
(By Contractor)

To (Engineer/CM):

WEBB
Attention: Reed Chilton
Phone: 951-830-5746
Email: [email protected]
From (Contractor):

W.M. Lyles Co.

Attention: Sean MacGregor
Phone: 951-201-1832
Email: [email protected]

PCO/DCM No.: N/A
Subject: RO Chemical Vent and Drain Modifications – T&M Reference Documents: Attached

DESCRIPTION
This Change Order Proposal for Time and Materials is for work performed make drain and vent pipe modifications to the RO Chemical Skids

COST ESTIMATE
Total Cost: $ 13,126.25– see attached breakdown.

SCHEDULE IMPACT
N/A
Received by WEBB (Date):
306
Item 13.

Page 2 of 2 ends

RESPONSE

Response By: Date:

Final Distribution: Sean MacGregor, W.M. Lyles Co.

Brian Knoll, Webb Associates
WEBB Inspector
307
Item 13.

W. M. Lyles Co.
42142 Roick Drive Date: 15-Jul-22
Temecula, CA 92590
Reference #: N/A
Attention: Reed Chilton
JOB LOCATION: City of Beaumont WWTP Slat Mitigation Upgrade Project DESCRIPTION: RO Chemical Pump Skid vent and drain modifications Item: Unit Total MHTotal MH Cost Eq. Cost Material Subcont. Total Cost 1 LS 40 3,253.87$ 473.60$ 7,573.65$ -$ 11,301.12$ 2 LS 0 -$ -$ -$ -$ -$ 3 LS 0 -$ -$ -$ -$ -$ 4 LS 0 -$ -$ -$ -$ -$ 5 LS 0 -$ -$ -$ -$ -$ 6 LS 0 -$ -$ -$ -$ -$ Total Costs 40 3,253.87$ 473.60$ 7,573.65$ -$ 11,301.12$ Subtotal
15%
15%
15%
5%
Bond 1.0%
Total This Change Order
Comments:

Mark-up - Subcontractor -$
129.96$
13,126.25$
RO Chemical Pump Skid vent and drain modifications
-
-
-
-
-
1,136.05$
11,301.12$
Mark-up - Labor
Mark-up - Equipment
Mark-up - Materials
488.08$

71.04$
308
Item 13.

City of Beaumont WWTP Slat Mitigation Upgrade Project

A. Labor

ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT 16 24
16 ##0 24 0 0 0 0 0 0.0 0 0 0 0 0 0 0 0 0 0 0
Name ST PT DT ST PT DT
Lab Pipe FM $82.92 $110.44 $137.96 16 0 0
Lab Pipe $80.30 $106.51 $132.73 24 0 0
Carp FM $89.66 $120.68 $151.72 0 0 0
Carp $85.74 $114.80 $143.87 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
40 0.0 0
Total Labor =
B. Equipment
Number Description Rate

17.236 16

15.198 0

18.311 0

32.037 0

17.236 0
0 16
Total Equipment =
C. Materials
Quantity Unit
1 LS
1 LS
1 LS
1 LS
1 LS
1 LS
1 LS
1 LS
Total Material =
D. Subcontractor
Quantity Unit
Total Subcontract =
1/2 Ton PickupFordF150 Ext Cab
Gang TruckDodge5500
F350 CrewSVC Body
Description
ReachliftXtremeXR1055
1/2 Ton PickupFordF150 Ext Cab
Chem Skid Mods
Chem Skid Mods
Lab Pipe FM Lab Pipe Carp FM Carp
Rate Hours
Extension
$1,326.66
$1,927.21
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$3,253.87
$3,253.87

17.236
16 16

15.198
0 18.311 17.23632.037
0 00 00
$473.60
$0.00$29.60
$0.00
Extension
$473.60
$0.00
$0.00
$0.00
$28.46
$58.61
$29.60
$38.38
$5,077.60
$1,347.61
$82.73
$14.11
Hours
Price
5,077.60$
1,347.61$

82.73$
Extension

82.51$
Home Depot 8515729
McMaster Carr 2506 14.11$
Peabody 0646080
Ponton
McMaster Carr 4328
$0.00
McMaster Carr 20484 99.64$ $99.64
Price
$0.00
$0.00
$7,573.65
Extension
$0.00
$0.00
$0.00
Description

25.62$ $25.62
$82.51
McMaster Carr 7925 843.83$ $843.83
Home Depot 6511009
309
Item 13.

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311Item 13.

312Item 13.

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322Item 13.

Memorandum
To: City of Beaumont

From: Reed Chilton, Albert A. Webb Associates

Date: July 29, 2022

Re: Beaumont MBR Replacement – COP 73 WAS Pump Station Piping Replacement

Installation of new Waste Activated Sludge (WAS) pumps utilized portions of existing buried piping and valves. Following the startup of the new pumps, it was determined that one of the existing valves was defective and obstructed flow to the pumps. Due to the location of the existing piping (buried below a concrete pad) it was decided that a cost-effective solution would be to install a new pump suction header and isolation valve and bypass the defective buried valve and piping aboveground.

The Contractor’s provided a not-to-exceed budget for this work. The scope of work and pricing was reviewed by the construction management and design team.

The total cost to the project is not-to-exceed $75,000.

Attachments:
- COP 73
323
Item 13.

W. M. Lyles Co.
42142 Roick Drive
Temecula, CA 92590
Reference #:

Attention: Reed Chilton
City of Beaumont WWTP Salt Mitigation Upgrade Project
DESCRIPTION:

Item: Unit Total MH Total MH Cost Eq. Cost Material Subcont. Total Cost 1 1 LS 35.5 2,897.09$ 1,090.48$ 5,059.55$ 8,068.50$ 17,115.62$ 2 1 LS 176 14,475.72$ 3,296.32$ 21,775.00$ 8,740.00$ 48,287.04$ 3 1 LS 0 -$ -$ -$ -$ -$ 1 LS 0 -$ -$ -$ -$ -$ Total Costs 211.5 17,372.82$ 4,386.80$ 26,834.55$ 16,808.50$ 65,402.67$ Subtotal
15%
15%
15%
5%
Bond 1.0%
Total This Change Order
Comments:
8" WAS Re-Route
65,402.67$
Mark-up - Labor
Mark-up - Equipment
Mark-up - Materials
Work completed to date on T&M
4,025.18$
Projected Cost to complete
735.32$
74,267.54$
Mark-up - Subcontractor
2,605.92$
840.43$
658.02$
324
Item 13.

City of Beaumont WWTP Salt Mitigation Upgrade Project
Work completed to date on T&M
A. Labor

ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT 8 3 3
8 8
2 3.5
21 0 0 14.5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Name ST PT DT ST PT DT
Lab Pipe FM $80.34 $107.19 $134.03 21 0 0
Carp $83.44 $112.07 $140.71 14.5 0 0
Operator $98.67 $131.84 $165.00 0 0 0
Carp FM $87.32 $117.91 $148.48 0 0 0
Carp $83.44 $112.07 $140.71 0 0 0
Lab $74.26 $98.07 $121.86 0 0 0
Cement Mason $80.42 $105.60 $130.78 0 0 0
MR FM $88.19 $119.10 $150.01 0 0 0

35.5 0 0
Total Labor =
B. Equipment
3 8
Number Description Rate

17.236 21

32.027 8

20.041 0

20.037 0

18.305 0

30.048 0

18.311 0

15.198 0

17.275 0
29 Total Equipment =
C. Materials
Quantity Unit
1 LS
ft
ea
ea
ea
hr

Subtotal
Total Material =
D. Subcontractor
Quantity Unit
1 LS
1 LS
1 LS
Total Subcontract =
8" knife gate valves - Harrington invoice
$0.00
$0.00
Tax
5,059.55$ $5,059.55
1 Ton Gang TruckFordF350 Ext Cab
6/24 T&M - pothole for undergound tie-in points

20.037
8 $1,209.87
6/29 T&M - pothole for undergound tie-in points 2
$0.00
$5,059.55
ExcavatorJohn Deere350GLC
1/2 Ton PickupChevy1500 Crew Cab
6/27 T&M - pothole for undergound tie-in points
Mini ExcavatorTakeuchiTB260
8 8
ReachliftSkytrak10042
1/2 Ton PickupFordF150 Ext Cab
6/24 T&M - pothole for undergound tie-in points
6/27 T&M - pothole for undergound tie-in points
NorCal Pipe
Description
Loader Backhoe 410John Deere410L
Carp Operator Carp FM Carp Lab
Rate Hours
Extension
$1,687.22
Cement MasonLab Pipe FM
$0.00
$0.00
$0.00
$0.00
$0.00

32.027
$2,897.09

17.236 20.041 18.31118.305 30.048
00021 0
$64.30
$0.00
$621.60
$468.88
$0.00
$29.60
$58.61
Price
0 $1,090.48
$38.38
$0.00$29.60
Extension
$29.60
$0.00
$0.00
$0.00
$0.00
$29.60
$8,068.50
$5,059.55
$2,788.50
Price
$2,640.00 $2,640.00
Description
$151.12
$2,788.50
NorCal Pipe
$2,640.00NorCal Pipe
Hours
$35.70
$2,640.00
Extension
6/28 T&M - pothole for undergound tie-in points
6/29 T&M - pothole for undergound tie-in points
6/28 T&M - pothole for undergound tie-in points
Gang TruckDodge5500
1 Ton TruckFord Crew Cab 2WD
$0.00
$0.00
Extension
$0.00
325
Item 13.

City of Beaumont WWTP Salt Mitigation Upgrade Project
Projected Cost to complete
A. Labor

ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT ST PT DT 8 16 8
Fab & Install pipe, fittings, valves, supports 24 48 24 Test pipe 8 16
Backfill holes and grade site 8 16
48 0 0 96 0 0 32 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Name ST PT DT ST PT DT
Lab Pipe FM $80.34 $107.19 $134.03 48 0 0
Lab Pipe $77.73 $103.27 $128.79 96 0 0
Operator $98.67 $131.84 $165.00 32 0 0
Carp FM $87.32 $117.91 $148.48 0 0 0
Carp $83.44 $112.07 $140.71 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
0 $0.00 $0.00 $0.00 0 0 0
176 0 0
Total Labor =
B. Equipment
Fab & Install pipe, fittings, valves, supports
Test pipe
Backfill holes and grade site
Number Description Rate

17.12 48

32.037 32

31.028 0

30.048 0

20.041 0

77.02 0

14.037 0
Total Equipment =
C. Materials
Quantity Unit
1 LS
1 LS
1 LS
45 CY
Total Material =
D. Subcontractor
Quantity Unit
1 LS
32 Hrs
4 hrs
Southern Contracting 1 LS
Total Subcontract =
Operator Carp FM Carp
Description Lab Pipe FM
Dayton Welding
Dayton Travel
$3,000.00 $3,000.00
Lab Pipe
Extension
$3,856.51
$7,461.88
Demo & remove existing pipe
Rate
Description
Foreman Truck
Hydro Crane - 80 TonLink BeltRTC-8080 II 80 Ton
Hours
$3,157.34
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

17.12 32.037 31.028 30.048 20.041
$14,475.72

77.02 14.037
Demo & remove existing pipe 8 8
24 24
8 8
Extension
0 $29.60 $1,420.80
Hours
0 ReachliftXtremeXR1055 $58.61 $1,875.52
$164.01 $0.00
Loader Backhoe 410John Deere410L$64.30 $0.00
ExcavatorJohn Deere350GLC $151.12 $0.00
$20.04 $0.00
Water TruckFordF750 2000 Gallon $46.23 $0.00
Scissor LiftJLG2646ES
Price Extension
$3,296.32
SS pipe & Fittings $15,000.00 $15,000.00
$0.00
NBG kits $1,500.00 $1,500.00
$95.00 $4,275.002-sack sand slurry
$0.00
$1,000.00 $1,000.00G&F Concrete Core
Price
Pipe Support 1,000.00$ $1,000.00
Extension
$420.00
$4,320.00
$0.00
0 $0.00
$135.00
48 32
$8,740.00
$21,775.00
$105.00
0 00 0
326
Item 13.

Staff Report

TO: City Council
FROM: Thaxton Van Belle, General Manager of Utilities
DATE August 16, 2022
SUBJECT: Capital Improvement Project: Lift Station Spare Pump Program Purchase

Background and Analysis:

The City of Beaumont sewer collection system is made up of 200 miles of pipeline and a complex system of pump lift stations (Attachment A). The City currently owns and operates nine different lift stations, with three additional lift stations scheduled to be constructed and/or turned over by the end of the year. No two lift stations are alike, with each having differing inflows, pumping rates, lengths of discharge, elevation changes to overcome, and more. Currently, the City does not stock any replacement pumps for the differing lift stations.

On June 6, 2022, City Council approved a Capital Improvement Plan (CIP) that included the purchase of lift station spare pumps. This will allow the City to have some pumps on hand as spares, which will reduce the likelihood of lengthy rental charges and loss of services. As part of the implementation, staff took into consideration, pump ages, availability, costs, and common use across multiple lift stations to recommend the following spare pump candidates:

 Fairbanks 30 HP Dry Sump $29,929.72
 Flygt 35 HP Submersible $41,890.00
 Flygt 105 HP Submersible $90,736.30
 Flygt 160 HP Submersible $117,291.80

The procurement process is considered sole source as the lift station pump fitment, including guide rails, pipe interface connections, and telemetry modules are unique to the manufacturers listed. The Beaumont Municipal Code states in §3.01.070-D that if “the product or service is proprietary in nature and can be obtained only from a limited number of contractors, and that no equivalent products or services are available, the notice inviting bids may be sent exclusively to such contractor.” 327
Item 14.

Fiscal Impact:

The quoted cost of pumps recommended for purchase is $277,695.10. Staff is requesting the approval of an amount not to exceed $293,900 to anticipate the tax and freight charges. This purchase will be funded from the Lift Station Spare Pump Program (CIP ISFWW -01), approved by City Council June 6, 2022. The estimated cost to prepare this report is $550.

Recommended Action:

Approve and authorize the purchase of the recommended pumps from Flo- Systems and Xylem with tax and freight in an amount not to exceed $293,900.

Attachments:

A. Lift Station Map
B. Quote - Fairbanks 30 HP
C. Quote - Flygt 35 HP Submersible
D. Quote - Flygt 105 HP Submersible
E. Quote – Flygt 160 HP Submersible
328
Item 14.

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329
Item 14.

08/04/2022

CITY OF BEAUMONT PUBLIC WORKS
Kevin Lee
550 E. 6th Street
Beaumont, CA 92223

RE: EXACT DUPLICATE OF SN: 10671198, (1361498); EXCEPT CCW

ROTATION

Dear Mr. Kevin Lee,

Flo-Systems, Inc is pleased to present a copy of the proposal requested. Please let me know if there are any discrepancies, or if you have any questions.

We look forward to working with you on this project.

Regards,

James Mitchell

FLO-SYSTEMS INC | (714) 202-8101 | (714) 627-4936 | [email protected]

Enclosure:

Proposal M06110
Terms of Sale
330
Item 14.

M06110
8/4/2022
Description
Date Page 1 of 1
Part Number
BEA2036 BW N30
Customer No.Salesperson ID Shipping Method Payment Terms Unit Price Ext PriceQty

PREPAID & ALLOWED
QUOTE #

FOB FACTORY

CITY OF BEAUMONT PUBLIC WORKS

KEVIN LEE
550 E. 6TH STREET
BEAUMONT, CA 92223
Ph: (951) 769-8522
Email: [email protected]
FM B5435 1 27,777.000 27,777.000
EXACT DUPLICATE OF SN: 10671198 (1361498);

EXCEPT CCW ROTATION
FM PUMP B5435 4"
CONDITIONS OF SERVICE: 450GPM@177' TDH
PUMP
(1) FAIRBANKS NIJUHUIS 4" B5435 COMPLETE PUMP,
30 HP, 1800 RPM, 460V DYNAMIC BALANCED CAST
IRON IMPELLER 11 INCH DIAMETER, MECH SEAL,

STAINLESS STEEL SHAFT SLEEVE, STANDARD

FACTORY COATING, TO BE USED WITH EXISTING BASE
& ELBOW.

FREIGHT PREPAID & ALLOWED TO FIRST DESTINATION
Subtotal
Freight
Sales Tax
Total
27,777.00

0.00 2,152.72
29,929.721. Equipment quoted is subject to Flo-Systems standard Terms & Conditions attached, unless agreed to otherwise.

2. Accessories, testing, services or anything not specifically mentioned in this quotation are not included.

3. Applicable sales tax will be added to order, or valid resale card for non-taxable.

4. Price reflects a 3.5% cash/check discount off the credit card price.

QUOTED BY JAMES MITCHELL
QUOTE VALID FOR 30 DAYS
ESTIMATED DELIVERY TIME 12-14 WEEKS ARO
331
Item 14.

TERMS OF SALE

1. ACCEPTANCE. These terms govern the purchase and sale of equipment, contractors services, etc, referred to in SELLER’S proposal or acknowledgement. Acceptance by SELLER, such offer or acceptance is conditioned on BUYER’S assent to these terms. SELLER rejects all additional or different terms in any of BUYER’S forms or documents unless specifically accepted by SELLER in writing. Where our Principal (manufacturer) reserves the right to accept the purchase order and invoice BUYER directly, our principals’ terms and conditions shall apply if same is included with the proposal.

2. PAYMENT. Terms are Net 30 days from date of shipment and invoice, subject to approval of credit. SELLER may ship on a "when ready" basis and partial invoice for the equipment that has shipped. Partial invoices are bound by the same terms as those invoices submitted upon complete shipment of equipment. Interest at one percent per month or at the legal maximum rate will be assessed for late payment.

3. RETENTIONS not previously approved in writing by SELLER are not permitted.

4. BACK CHARGES accepted only upon written approval by SELLER.

5. DELIVERY. SELLER shall not be liable for delays in delivery due to fire, flood, labor issues, war, civil disorders, delay in transportation, inability to obtain materials, accidents, acts of God or other causes beyond SELLER’S reasonable control. If shipment is delayed due to BUYER or by government action, payment becomes due when the factory is ready to make shipment and storage charges, if any, become the BUYERS responsibility.

6. RESPONSIBILITY. SELLER shall not be responsible for damage to equipment if misused, improperly stored, installed or maintained.

SELLER SHALL NOT BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, COLLATERAL, LIQUIDATED OR OTHER INDIRECT DAMAGES. CONSEQUENTIAL DAMAGES FOR THE PURPOSE OF THIS AGREEMENT SHALL INCLUDE BUT NOT BE LIMITED TO, LOSS OF USE, INCOME, PROFIT, LOSS OF OR DAMAGE TO PROPERTY, ETC. These limitations apply whether the liability is based upon contract, tort, strict liability or any other theory.

7. WARRANTY. For benefit of the original user, SELLER warrants all new equipment sold to be free from defects in material and workmanship, and will replace or repair, F.O.B. at its factories or other location designated by it, any part or parts returned to it which SELLERS examination shall show to have failed under normal use and service by the original user within one year following initial shipment to the BUYER. This warranty does not cover damage by decomposition from chemical action or wear caused by abrasive materials nor does it cover damage resulting from misuse, alteration, accident or neglect, or from improper operation, maintenance, installation, modification or adjustment. Such repair or replacement shall be free for all items except for those items that are consumable and normally replaced during maintenance. THIS WARRANTY IS EXPRESSLY MADE BY SELLER AND ACCEPTED BY BUYER IN LIEU OF ALL OTHER WARRANTIES, WHETHER WRITTEN, ORAL, EXPRESS OR IMPLIED.

Warranty does not cover removal and installation of equipment.

8. TAXES. Prices are exclusive of all taxes, federal, state local of any kind or nature.

9. TRANSPORTATION. Unless otherwise set forth herein, prices are F.O.B. our factories. The consignee must report all claims for damages in transit to the carrier.

10. COMPLIANCE WITH LAWS. BUYER shall be solely responsible for securing any necessary permits and for compliance with all safety, health, sanitation and any other laws, ordinances and regulations in connection with the design, installation and operation of the equipment.

11. INDEMNIFICATION. It is understood that SELLER has relied upon data furnished by and on behalf of BUYER with respect to the safety aspects and application of the equipment and that it is BUYER’S responsibility to assure that the equipment will, when installed and put in use, be in compliance with requirements fixed by law and otherwise legally adequate to safeguard against injuries or damage to persons or property. BUYER hereby agrees to defend, indemnify and hold harmless SELLER, its agents and employees against any and all losses, costs, damages, claims, liabilities or expenses, arising out of or resulting from any injury or damage to any person or property caused by the inadequacy of safety features, devices or characteristics in the equipment or in the installation, use or operation of the same, except claims for repair or replacement of defective parts are provided in Paragraph 7 hereof. SELLER will indemnify, defend and hold BUYER harmless from any claim, cause of action or liability incurred by BUYER as a result of third party claims for personal injury, death or damage to tangible property, to the extent caused by SELLER’S sole negligence. SELLER shall have the sole authority to direct the defense of and settle any indemnified claim. SELLER’S indemnification is conditioned on BUYER (a) promptly notifying SELLER of any claim, and (b) providing reasonable cooperation in the defense of any claim. SELLER’S liability is limited to the coverage offered and paid by the SELLERS insurance policies.

12. TITLE & LIEN RIGHTS. After delivery to Buyer, Seller will have all such rights, including security interests and liens, in the equipment as lawfully may be conferred upon Seller by contract under any applicable provision of law.

13. MISCELLANEOUS. Goods may not be returned without previous written permission and are subject to a restocking charge. The SELLER may cancel agreement only upon written notice and payment of reasonable cancellation charges, including anticipated profit.

Attorney’s fees and court costs necessary to enforce these terms of sale will be paid to the prevailing party. No part of the Agreement may be changed or cancelled except by a written document signed by SELLER and BUYER. No course of dealing or performance, usage of trade or failure to enforce any term shall be used to modify the Agreement. If any of these terms is unenforceable, such term shall be limited only to the extent necessary to make it enforceable and all other terms shall remain in full force and effect. BUYER may not assign or permit any other transfer of the Agreement without SELLER’S prior written consent. The Agreement shall be governed by the laws of the State of California without regard to its conflict of laws provision

332
Item 14.

Page 1 of 3 ends

August 4, 2022

CITY OF BEAUMONT
550 E 6TH ST
BEAUMONT CA 92223-2253

Quote # 2022-LAB-0405
Project Name: CITY OF BEAUMONT
Job Name:

Xylem Water Solutions USA, Inc. is pleased to provide a quote for the following Flygt equipment.

A Flygt Preventive Maintenance Contract is available for this order. Please contact XXX for more information.

pump

Qty Part Number Description Unit Price Extended Price
1 3202.095-0014 Flygt Model NP-3202.095 8"
volute Submersible pump
equipped with a 460 Volt / 3
phase / 60 Hz 35 HP 1150
RPM motor, 642 impeller, 1 x
50 Ft. length of SUBCAB
4G10+S(2x0,5) submersible
cable, FLS leakage detector,
volute is prepared for Flush
Valve
$ 39,716.00 $ 39,716.00

Total Price $ 39,716.00

Freight Charge $ 2,174.00

Total Price $ 41,890.00

Terms & Conditions
This order is subject to the Standard Terms and Conditions of Sale – Xylem Americas effective on the date the order is accepted which terms are available at http://www.xyleminc.com/en-us/Pages/terms- conditions-of-sale.aspx and incorporated herein by reference and made a part of the agreement between the parties.

Xylem Water Solutions USA, Inc.

Flygt Products
11161 Harrel Street
Mira Loma, CA 91752
Tel (951) 332-3668
Fax (951) 332-3679

333
Item 14.

Page 2 of 3 ends

Purchase Orders: Please make purchase orders out to: Xylem Water Solutions USA, Inc.

Freight Terms: 3 DAP - Delivered At Place 08 - Jobsite (per IncoTerms 2020) See Freight Payment (Delivery Terms) below.

Taxes: State, local and other applicable taxes are not included in this quotation.

Back Charges: Buyer shall not make purchases nor shall Buyer incur any labor that would result in a back charge to Seller without prior written consent of an authorized employee of Seller.

Shortages: Xylem will not be responsible for apparent shipment shortages or damages incurred in shipment that are not reported within two weeks from delivery to the jobsite. Damages should be noted on the receiving slip and the truck driver advised of the damages. Please contact our office as soon as possible to report damages or shortages so that replacement items can be shipped and the appropriate claims made.

Terms of Delivery: PP/Add Order Position
Terms of Payment: 100% N45 after invoice date.

Xylem’s payment shall not be dependent upon Purchaser being paid by any third party unless Owner denies payment due to reasons solely attributable to items related to the equipment being provided by FLYGT.

Validity: This Quote is valid for ninety (90) days.

Schedule: Submittals are not applicable. Delivery lead times are XX weeks after order acceptance.

Warranty: Xylem Water Solutions USA, Inc.offers a commercial warranty to the original end purchaser against defects in workmanship and material.

Exclusions: This Quote includes only the items listed specified above.

Thank you for the opportunity to provide this quotation. Please contact us if there are any questions.

Sincerely,

Manny Padilla Jr.

Aftermarket Sales
Phone: 562.760.9258

[email protected]

334
Item 14.

Page 3 of 3 ends

Customer Acceptance
This order is subject to the Standard Terms and Conditions of Sale – Xylem Americas effective on the date the order is accepted which terms are available at http://www.xyleminc.com/en-us/Pages/terms- conditions-of-sale.aspx and incorporated herein by reference and made a part of the agreement between the parties.

A signed copy of this Quote is acceptable as a binding contract.

Purchase Orders: Please make purchase orders out to: Xylem Water Solutions USA, Inc.

Quote #: 2022-LAB-0405
Customer Name: CITY OF BEAUMONT
Job Name:

Total Amount: $ 39,716.00
(excluding freight)

Signature: _______________________________ Name:_______________________________________ (PLEASE PRINT)

Company/Utility:___________________________ PO:_________________________________________ Address:_________________________________ Date:________________________________________ ________________________________________ Phone:_______________________________________ ________________________________________

Email:_______________________________________

________________________________________

Fax:_________________________________________

Xylem Water Solutions USA, Inc.

Flygt Products
335
Item 14.

Page 1 of 3 ends

August 4, 2022

CITY OF BEAUMONT
550 E 6TH ST
BEAUMONT CA 92223-2253

Quote # 2022-LAB-0408
Project Name: CITY OF BEAUMONT
Job Name:

Xylem Water Solutions USA, Inc. is pleased to provide a quote for the following Flygt equipment.

A Flygt Preventive Maintenance Contract is available for this order. Please contact XXX for more information.

pump

Qty Part Number Description Unit Price Extended Price
1 3301.095-0054 Flygt Model NP-3301.095 6"
volute Submersible pump
equipped with a 460 Volt / 3
phase / 60 Hz 105 HP 1750
RPM motor, 462 impeller, 1 x
100 Ft. length of SUBCAB
3x50+2G35/2+S(2x0,5)
submersible cable, FLS leakage
detector, volute is prepared for
Flush Valve
$ 86,290.30 $ 86,290.30

Total Price $ 86,290.30

Freight Charge $ 4,446.00

Total Price $ 90,736.30

Xylem Water Solutions USA, Inc.

Flygt Products
11161 Harrel Street
Mira Loma, CA 91752
Tel (951) 332-3668
Fax (951) 332-3679

336
Item 14.

Page 2 of 3 ends

Purchase Orders: Please make purchase orders out to: Xylem Water Solutions USA, Inc.

Freight Terms: 3 DAP - Delivered At Place 08 - Jobsite (per IncoTerms 2020) See Freight Payment (Delivery Terms) below.

Taxes: State, local and other applicable taxes are not included in this quotation.

Back Charges: Buyer shall not make purchases nor shall Buyer incur any labor that would result in a back charge to Seller without prior written consent of an authorized employee of Seller.

Terms of Delivery: PP/Add Order Position
Terms of Payment: 100% N45 after invoice date.

Validity: This Quote is valid for ninety (90) days.

Schedule: Submittals are not applicable. Delivery lead times are XX weeks after order acceptance.

Warranty: Xylem Water Solutions USA, Inc.offers a commercial warranty to the original end purchaser against defects in workmanship and material.

Exclusions: This Quote includes only the items listed specified above.

Thank you for the opportunity to provide this quotation. Please contact us if there are any questions.

Sincerely,

Manny Padilla Jr.

Aftermarket Sales
Phone: 562.760.9258

[email protected]

337
Item 14.

Page 3 of 3 ends

A signed copy of this Quote is acceptable as a binding contract.

Purchase Orders: Please make purchase orders out to: Xylem Water Solutions USA, Inc.

Quote #: 2022-LAB-0408
Customer Name: CITY OF BEAUMONT
Job Name:

Total Amount: $ 86,290.30
(excluding freight)

Signature: _______________________________ Name:_______________________________________ (PLEASE PRINT)

Email:_______________________________________

________________________________________

Fax:_________________________________________

Xylem Water Solutions USA, Inc.

Flygt Products
338
Item 14.

Page 1 of 3 ends

August 4, 2022

CITY OF BEAUMONT
550 E 6TH ST
BEAUMONT CA 92223-2253

Quote # 2022-LAB-0406
Project Name: CITY OF BEAUMONT
Job Name:

Xylem Water Solutions USA, Inc. is pleased to provide a quote for the following Flygt equipment.

A Flygt Preventive Maintenance Contract is available for this order. Please contact XXX for more information.

pump

Qty Part Number Description Unit Price Extended Price
1 3315.095-0082 Flygt Model NP-3315.095 6"
volute Submersible pump
equipped with a 460 Volt / 3
phase / 60 Hz 160 HP 1750
RPM motor, 456 impeller, 2 x
50 Ft. length of SUBCAB
3x50+2G35/2+S(2x0,5)
submersible cable, FLS leakage
detector
$ 111,543.80 $ 111,543.80

Total Price $ 111,543.80

Freight Charge $ 5,748.00

Total Price $ 117,291.80

Purchase Orders: Please make purchase orders out to: Xylem Water Solutions USA, Inc.

Xylem Water Solutions USA, Inc.

Flygt Products
11161 Harrel Street
Mira Loma, CA 91752
Tel (951) 332-3668
Fax (951) 332-3679

339
Item 14.

Page 2 of 3 ends

Freight Terms: 3 DAP - Delivered At Place 08 - Jobsite (per IncoTerms 2020) See Freight Payment (Delivery Terms) below.

Taxes: State, local and other applicable taxes are not included in this quotation.

Back Charges: Buyer shall not make purchases nor shall Buyer incur any labor that would result in a back charge to Seller without prior written consent of an authorized employee of Seller.

Terms of Delivery: PP/Add Order Position
Terms of Payment: 100% N45 after invoice date.

Validity: This Quote is valid for ninety (90) days.

Schedule: Submittals are not applicable. Delivery lead times are XX weeks after order acceptance.

Warranty: Xylem Water Solutions USA, Inc.offers a commercial warranty to the original end purchaser against defects in workmanship and material.

Exclusions: This Quote includes only the items listed specified above.

Thank you for the opportunity to provide this quotation. Please contact us if there are any questions.

Sincerely,

Manny Padilla Jr.

Aftermarket Sales
Phone: 562.760.9258

[email protected]

340
Item 14.

Page 3 of 3 ends

A signed copy of this Quote is acceptable as a binding contract.

Purchase Orders: Please make purchase orders out to: Xylem Water Solutions USA, Inc.

Quote #: 2022-LAB-0406
Customer Name: CITY OF BEAUMONT
Job Name:

Total Amount: $ 111,543.80
(excluding freight)

Signature: _______________________________ Name:_______________________________________ (PLEASE PRINT)

Email:_______________________________________

________________________________________

Fax:_________________________________________

Xylem Water Solutions USA, Inc.

Flygt Products
341
Item 14.

Staff Report

TO: City Council
FROM: Thaxton Van Belle, General Manager of Utilities
DATE August 16, 2022
SUBJECT: Capital Improvement Project: Spare Variable Frequency Drive (VFD) Program Purchase

Background and Analysis:

A variable frequency drive (VFD) is a type of motor controller that drives an electric motor by varying the frequency and voltage of its power supply. This allows a controlled ramp-up of the motor during start-up, saving energy and reducing mechanical stress.

VFDs allow pumps to be run at set speeds/rates rather than simply on or off. Both the wastewater treatment plant (WWTP) and lift station system utilize VFDs. Many of the lift station VFDs are due for replacement and while most at the WWTP are new, supply issues related to the pandemic and chip shortage have severely limited availability and generated long lead times.

On June 6, 2022, City Council approved a Capital Improvement Plan that included the purchase of spare VFDs. This will allow the City to replace some VFDs and also have some on hand as spares, which will reduce the likelihood of lengthy rental charges and loss of services. As part of the implementation staff has consulted with electrical engineers, and considered availability, costs, and common use across multiple stations.

The procurement, setup and programming will be done by the City’s contracted SCADA integration and controls engineer, SKM Engineering.

Fiscal Impact:

The quoted cost of VFDs recommended for purchase is $44,757.79. Staff is requesting the approval of an amount not to exceed $53,000 to anticipate the tax and freight charges. This purchase will be funded from the VFD Spare Program (CIP ISFWW -02), approved by City Council June 6, 2022. The estimated cost to prepare thi s report is $550.

342
Item 15.

Recommended Action:

Approve and authorize the purchase of the recommended VFDs with tax and freight by SKM Engineering in an amount not to exceed $53,000.

Attachments:

A. Quote 1
B. Quote 2
C. Quote 3
343
Item 15.

Quotation
April 26, 2022
Thaxton Van Belle
City of Beaumont
715 W. 4th Street
Beaumont, CA 92223
Re: Lift Stations VFD’s
No. of
Items Description Price
1 FR-F840-01160-3-60-H, Marshal $7,040.00
1 FR-F840-01800-3-60-H, Upper Pump 5 $7,702.00
1 DC Link Choke, Upper Pump 5 $542.00
1 FR-F840-03250-3-60-L, Upper Pump 3 $10,027.80
1 DC Link Choke, Upper Pump 3 $710.00
1 Fan Kits, Upper Pump 3 $1,500.00
Total $27,521.80
Total Price $27,521.80
Expires May 26, 2022
Revision 1
Revision Date April 26, 2022
Comments
Shipping will be added to the total at the time of Order.

Order Placed prior to expiration. On Order
Huck Fenn, Senior Controls Engineer
SKM Engineering, LLC
[email protected]
307-699-9559
344
Item 15.

Quotation
August 5, 2022
Thaxton Van Belle
City of Beaumont
715 W. 4th Street
Beaumont, CA 92223
Re: Lift Stations Soft Starts
No. of
Items Description Price
1 ATS480D88Y, Noble, Four Seasons, Lower $2,087.16
1 ATS480C14Y, Lower, Upper, Little Lower $2,919.09
1 ATS480C25Y, Four Seasons $4,507.52
Total $9,513.77
Total Price $9,513.77
Expires September 5, 2022
Revision 1
Revision Date August 5, 2022
Comments
Shipping will be added to the total at the time of Order Huck Fenn, Senior Controls Engineer
SKM Engineering, LLC
[email protected]
307-699-9559
345
Item 15.

Quotation
August 5, 2022
Thaxton Van Belle
City of Beaumont
715 W. 4th Street
Beaumont, CA 92223
Re: Lift Stations VFD’s
No. of
Items Description Price
1 FR-F840-01800-3-60-H, Four Seasons, Upper $7,722.22
Total $7,722.22
Total Price $7,722.22
Expires September 5, 2022
Revision 1
Revision Date August 5, 2022
Comments
Shipping will be added to the total at the time of Order Huck Fenn, Senior Controls Engineer
SKM Engineering, LLC
[email protected]
307-699-9559
346
Item 15.

Staff Report

TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE August 16, 2022
SUBJECT: Completion of Rental Agreement on Vactor and Patch Trucks

Background and Analysis:

On December 5, 2017, the City Council approved to purchase a patch and vactor truck by means of a lease purchase agreement with Providence Capital Funding, Inc. A deposit and doc fee in the amount of $12,555 was sent to Prudential in December 2017 and a down payment of $128,444 was paid to Providence in April 2018. The agreement was then transferred to Alliance Funding Group (Alliance) as a rental agreement beginning in June 2018, with payments concluding on June 1, 2022. The City has been making the payments to KS StateBank per the rental agreement signed with Alliance Funding Group. The City was notified in July 2022, that the agreement had concluded and that notification had not been received by Alliance for plans on continuing the agreement or purchasing the vehicles and therefore, per the agreement, the rental payments due automatically renewed.

Per the agreement, the City can choose to finalize the purchase by paying Alliance the fair market value of the equipment as determined by Alliance, renew the rental agreement for a period not less than 12 months, or let the agreement automatically renew for one year at the current lease payment.

City staff has assessed the condition of the equipment and determined that both the vactor and patch truck are in excellent condition with very low hours of use and have a substantial amount of remaining life. The costs to continue the rental payments over the remaining useful life of the equipment are expected to far exceed the cost to finalize the purchase of the equipment at the market value provided in the quote obtained by Alliance.

A lease payment was made in July and has been applied to the payoff quote provided as Attachment A. The total amounts paid to date for the equipment are provided in the table below:
347
Item 16.

Deposit and Doc Fee $12,555.00
Down Payment $128,444.00
Rental Agreement $567,876.96
Payoff Quote including July Rental
Payment
$212,426.98
Total Cost $921,302.94

Fiscal Impact:

The payoff quote totals $212,426.98 for both the patch and vactor truck. Rental payments totaling $38,340 have been included in the Streets Maintenance Department FY23 budget. A budget amendment will be brought forward to City Council in October to include the payoff in available unprogrammed revenues within the General Fund budget for the remaining $178,086.98.

Recommended Action:

Approve $212,426.98 payment to Alliance Funding Group for payoff of vactor and patch truck.

Attachments:

A. Alliance Funding Group Payoff Quote
B. Alliance Funding Group Rental Agreement
348
Item 16.

Alliance Funding Group
17542 17th Street #200
Tustin,CA 92780
www.afg.com
c:6106 a:3095

PAYOFF QUOTE
Date:08/10/22
Time(PST):01:23:42 PM
ATTN:

COMPANY:City of Beaumont,California
FROM:Lease Servicing Department
COMMENTS:

Name:City of Beaumont,California
Contract #:18-9262
Payoff Quote:$212,426.98
Equipment:2019 Kenworth VIN:3BKBLJ0X2KF245136,2019 Freightliner VIN:1FVACYFC1KHKS2325
Expiration Date:08/19/22
Payment Information:Alliance Funding Group
C/O:Payoff Department
17542 17th St.Ste 200
Tustin CA 92780Ref:6106/3095 on check or wire
Domestic Wires:

Bank Name:CIBC Bank USA
Bank Address:120 South LaSalle Street
Bank City,State &Zip:Chicago,IL 60603
Routing /ABA Number:

Corporate Account Number:

Recipient Information:Alliance Funding Group
Recipient Address:17542 17th Street,Suite 200
Recipient City,State &Zip:Tustin,CA 92780
Upon receipt of the funds,Alliance Funding Group will file a UCC3 terminating our lien interest in the equipment and provide City of Beaumont,California with a bill of sale reflecting the transfer of ownership.

If you have any questions,please email Payoff Department at [email protected] or you can reach us at (844)383-1509.Due to high volume of calls you may get voicemail.Please leave a message and someone will get back to you within a few hours.

For additional equipment leasing needs please contact your sales representative or call us at (800)978- 8817.We thank you for your business.
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Item 16.

Staff Report

TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE August 16, 2022
SUBJECT: Set Time, Date, and Place for a Special Workshop – Fiscal Year 2022- 2023 Budget Amendments, Update on Capital Improvement Projects, and Discussion on the Outfitting and Apparatus Selection of Fire Station No. 106 (Westside Fire Station)

Background and Analysis:

City staff is requesting that the City Council establish the time, date, and place for a special workshop to be held for City Council to review proposed amendments to the Fiscal Year 2022-2023 budget; receive and file an update on capital improvement projects; and discuss the outfitting and apparatus selection of Fire Station No. 106 (Westside Fire Station).

Fiscal Impact:

City staff estimates the cost to prepare this report to be $75.

Recommended Action:

Establish a time, date, and place for a special workshop.

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Item 17.

BILLING DEPARTMENT
[email protected]
REPLY TO:

Palm Springs, California
August 4, 2022
CITY OF BEAUMONT PROFESSIONAL SERVICES THRU: 7/31/2022
TOTAL DUE: $62,266.50
Sincerely,

SBEMP,LLP
By: Accounting Department
373
Item 18.

SLOVAK BARON EMPEY MURPHY & PINKNEY LLP
Palm Springs, CA
T (760) 322-2275
Indian Wells, CA
T (760) 322- 9240
Orange County, CA
T (714) 435-9591
San Diego, CA
T (619) 501-4540
New Jersey
T (609) 955-3393
New York
T (212) 829-4399
www.sbemp.com
1800 E Tahquitz Canyon Way
Palm Springs, CA 92262
Fed. ID #33-0833010
Telephone 760-322-2275
Facsimile 760-322-2107
August 4, 2022
City of Beaumont

E-MAIL INVOICES
Our file no:

City of Beaumont*AIG
Professional services through: 7/31/2022: Invoice # 73098 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $20.185.00
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Item 18.

E-MAIL INVOICES
Our file no:

City of Beaumont*Fortier
Professional services through: 7/31/2022: Invoice # 73099 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $797.50
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Item 18.

E-MAIL INVOICES
Our file no:

City of Beaumont*Gregg
Professional services through: 7/31/2022: Invoice # 73100 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $12,347.50
376
Item 18.

E-MAIL INVOICES
Our file no:

City of Beaumont*Norton Rose
Professional services through: 7/31/2022: Invoice # 73102 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $8,195.00
377
Item 18.

E-MAIL INVOICES
Our file no:

City of Beaumont*Sandoval
Professional services through: 7/31/2022: Invoice # 73103 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $165.00
378
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E-MAIL INVOICES
Our file no:

City of Beaumont*Urban Logic
Professional services through: 7/31/2022: Invoice # 73114 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $5,187.45
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E-MAIL INVOICES
Our file no:

City of Beaumont-NobleCreekRev
Professional services through: 7/31/2022: Invoice # 73108 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $23.90
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E-MAIL INVOICES
Our file no:

City of Beaumont-OverRetainer
Professional services through: 7/31/2022: Invoice # 73109 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $7,791.40
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E-MAIL INVOICES
Our file no:

City of Beaumont-Retainer
Professional services through: 7/31/2022: Invoice # 73115 Amount
BALANCE DUE – PLEASE SUBMIT PAYMENT: $7,573.75
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www.hdlcompanies.com | 888.861.0220
Q1 2021*
Q1 2022*
Legend
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
SALES TAX BY MAJOR BUSINESS GROUP*Allocation aberrations have been adjusted to reflect sales activity Business
and
Industry
County
and State
Pools
General
Consumer
Goods
Building
and
Construction
Fuel and
Service
Stations
Restaurants
and
Hotels
Autos
and
Transportation
Food
and
Drugs
TOP 25 PRODUCERSCITY OF BEAUMONT HIGHLIGHTS
Published by HdL Companies in Summer 2022

SALES TAX UPDATE

CITY OF BEAUMONT
1Q 2022 (JANUARY - MARCH)
84 Lumber Co
Amazon Com Services
Amazon MFA
Arco AM PM
Beaumont Gas Mart
Beaumont RV
Beaumont Service Station
Best Buy
Big Tex Trailers
Carson Trailer
CJ Foods
Grove 76
Home Depot
Icon Health & Fitness
Kohls
Mayas Chevron
Oak Valley Chevron
Pacific Manufactured Homes
Raising Cane’s
Ross
Stater Bros
Trailer Factory Outlet
USA Gas
Walmart Supercenter
Wolverine Worldwide
Beaumont’s receipts from January
through March were 287.3% above the
first sales period in 2021. Excluding
reporting aberrations, actual sales were
up 292.2%.

The local economy has continued to
show signs of post-pandemic growth.

The City experienced significant growth
from its top sector business & industry
for the third consecutive quarter.

All factors within the fuel and service
stations sector are continuing to
experience upward pressure, which
include restricted supply attributable
to the Russian Ukraine crisis, record oil
barrel and prices at the pump, a slow
implementation by Saudi Arabia to
increase production of global supply, and
ongoing strong demand for fuel resulting
from increased road and air travel. This
has boosted the associated sales tax.

Returns from building materials,
contractors, trailers/RVs, auto repair
shops, electronic/appliance stores, food
& drugs, and the state and county pools
were also up.

The City experienced solid growth from
casual dining; however, the restaurants
and hotels sector has been impacted by
escalating costs and staff shortages that
present ongoing challenges for operators
and are expected to slow growth over
the coming few quarters.

Receipts from light industrial/printers,
home furnishings, quick service and fast
casual restaurants decreased to partially
offset the overall quarterly gain.

Net of aberrations, taxable sales for all of
Riverside County grew 18.6% over the
comparable time period; the Southern
California region was up 19.2%.

TOTAL:$ 6,807,686
292.2% 18.6% 17.1%

COUNTY STATE

BEAUMONT
1Q2022
384
Item 20.

TOP NON-CONFIDENTIAL BUSINESS TYPES
Q1 '22*
BeaumontBusiness Type Change Change ChangeCountyHdL State

43.4%42.9%37.9% 252.5 Service Stations

7.6%7.9%15.3% 245.3 Building Materials

7.8%3.0%-2.6% 143.0 Quick-Service Restaurants

2.2%2.3%6.8% 125.5 Trailers/RVs

12.5%6.6%8.1% 73.8 Electronics/Appliance Stores

3.2%5.9%1.1% 64.7 Grocery Stores

55.7%52.8%49.1% 57.5 Casual Dining

20.5%15.5%34.9% 39.8 Contractors

18.7%18.7%8.7% 27.6 Auto Repair Shops

10.7%13.6%159.7% 26.5 Specialty Stores
*Allocation aberrations have been adjusted to reflect sales activity *In thousands of dollars

REVENUE BY BUSINESS GROUP
Beaumont This Quarter*
5%
Cons.Goods
16%
Others
15%
Pools
64%
Bus./Ind.*ADJUSTED FORECONOMIC DATA
SALES TAX UPDATECITY OF BEAUMONT1Q 2022

STATEWIDE RESULTS
California’s local one-cent sales and use tax
for sales occurring January through March
was 17% higher than the same quarter one
year ago, after adjusting for accounting
anomalies and onetime payments from
previous quarters. By all accounts, the
California retail economy continues roaring
along. Even with instability in the stock
market, the crisis in Ukraine pushing up the
global price of crude oil and the U.S. Federal
Reserve Board beginning to tackle inflation
with a series of rate increases, consumer
spending continued at a strong pace.

The invasion of Ukraine by Russian
military forces on February 24 had an
immediate upward impact on the global
price of crude oil due to fears of supply
shortages. Subsequently this has caused a
dramatic jump to California consumer gas
and diesel prices at a time when many in
the workforce were commuting back into
offices, also contributing to an overall
increase in consumption. As expected, fuel
and service station receipts increased 47%
over last year and show no signs of pulling
back with summer travel right around the
corner.

Sales of new and used vehicles continue
to be robust causing the autos and
transportation sector to jump 15% for
the period. Inventory shortages by some
dealers may have caused buyers to
experience a Fear Of Missing Out (FOMO)
and pay elevated prices while interest rates
remained lower. Automotive brands that
have committed to full electric or hybrid
models are attractive with consumers,
especially given the sudden rise in fuel
prices.

Post-holiday retail sales of general
consumer goods remained solid, improving
10%. Prior supply chain concerns have
dissipated, port operations are returning
to normal and headwinds from inflation
and higher cost goods haven’t yet slowed
consumer demand. The stellar returns
were largely driven by discount department
stores, especially those selling gas.

These results mark the fourth full quarter
in a row that restaurant and hotel receipts
have increased. While higher menu
prices have contributed, steady demand
by patrons to dine out is also propelling
the gains. Furthermore, theme parks and
entertainment venues throughout the state
are busy. With the summer tourism and
travel season approaching, the industry
is positioned to maintain post-pandemic
growth and remain positive through 2022.

Use taxes generated by online sales and
purchases from out-of-sate vendors
allocated via the county pools, heartily
surpassed expectations, gaining 13% over
the comparison period. Shoppers bought
a range of merchandise and spending by
businesses on capital equipment remained
sensational.

The first quarter sales period contributed
to an already strong 2021-22 fiscal year for
most municipalities statewide. However,
continued inflationary pressure, soaring
interest rates and record gas prices may
soften growth going into 2022-23.
385
Item 20.

Delivering Revenue, Insight and Efficiency to Local Government Since 1983 HdL provides relevant information and analyses on the economic forces affecting California’s local government agencies. In addition, HdL’s Revenue Enhancement and Economic Development Services help clients to maximize revenues.
888.861.0220 | [email protected] | hdlcompanies.com

CALIFORNIA FORECAST

SALES TAX TRENDS & ECONOMIC DRIVERS
JUNE 2022
Huntington Beach, CA
386
Item 21.

STATEWIDESALES TAX TRENDS
2021/22 | 2022/232021/22 | 2022/23
Overview: Current and next year’s effects on sales taxes include continuous high inflation into 2023. Intertwined are the three Federal Fund’s interest rate increases to date with additional hikes expected through the remainder of this calendar year. Fuel price instability, stock market woes and rising consumer prices (as raw materials and components are more expensive) could further weaken consumer confidence and households will likely pull back on discretionary purchases. International supply chain issues show a steady recovery. Employee costs and worker shortages are holding back rebounds in hospitality and travel, and pandemic cycles may impact future spending patterns.

Fuel/Service Stations 51.6% | 8.8%
This sector endures upward pressure from multiple factors including restricted supplies (resulting from the Russian-Ukraine crisis), persistent record oil barrel and pump-related prices, and slow implementation by Saudi Arabia to increase production of global supply. A strong demand for greater road and air travel, refinery production interruptions, and conversion to summer petroleum blends are also contributing components. As a result, HdL forecasts a surge in sales tax for three more quarters, followed by a reduction beginning first quarter 2023. Additionally, the scheduled gas tax hike was proposed to be suspended by the Governor, but Legislative rejection of this idea allows Senate Bill 1 higher per gallon tax rates to take effect July 1, 2022.

General Consumer Goods 13.3% | 1.1%
First quarter sales tax outpaced previous expectations by just over 1%. Results were skewed due to a portion of fuel sales captured by discount department stores. Most segments expanded, but lower than expected activity from apparel retailers indicate shoppers might be shifting spending to cover higher food and gas prices. Many establishments reported data supporting customers being more mindful of basket size with lower spending on discretionary items.

Despite these headwinds, outlay remains strong as households draw from a stockpile of savings and available credit. HdL projects mild growth through fiscal year 2022/23 (attributed to consumer spending resiliency) and for higher borrowing costs and inflation to contribute to a slight pullback in fiscal year 2023/24.

Restaurants/Hotels 34.5% | 4.5%
Restaurant operators’ optimism has dwindled since mid-2021. While visits to restaurants continue to rise, escalating costs and staffing shortages present on-going challenges. Third-party restaurant delivery companies have reduced direct allocation to this group with a corresponding jump in allocations to the county pools. Over

3.5% of restaurant sector revenue is now reporting via the pools.

Staffing shortages plague the hotel and entertainment industries as well. International tourism and business travel still have a long recovery ahead, but these other challenges are expected to slow growth over the coming few quarters.

State and County Pools 3.8% | 5.0%
The first quarter of 2022 saw an unexpected spike in use taxes distributed proportionally based upon each agency’s place of sale results within their respective counties. Revenue surges were noteworthy in private-party auto sales and contractor activity, along with strong capital investment from several segments within the business-industry group. Multiple experts confirm e-commerce sales should continue to expand with bigger portions of overall retail sales activity benefitting both B2C and B2B enterprises. Pools use taxes moderate at lower growth levels. Anticipated gains reflect the resilient desire for buying online with upticks in prices on digitally available merchandise.

Proposition 172 projections vary from statewide Bradley-Burns calculations due to the state’s utilization of differing collection periods in its allocations to counties. HdL forecasts a statewide increase of

16.2% for Fiscal Year 2021/22 and 3.1% for 2022/2023.

Autos/Transportation 12.4% | 4.0%
Several vehicle manufacturers recently reported the supply chain crisis is easing earlier than anticipated, with production returning to full capacity. However, as companies work to fulfill their large backlog of existing orders, industrywide vehicle inventory available on dealers’ lots remains at a record low. Rising financing rates and high prices are also clouding the outlook for consumer demand going forward.

While tax receipts increased another 15% in the first calendar quarter of 2022, recent sales reports for April and May indicate a worsening trend. As inventory slowly recovers, dealers are expected to lower prices to more affordable levels to coax reluctant consumers to buy. The forecast for modest growth over the next year reflects the interplay of these various elements.

Building/Construction 9.2% | 2.5%
The first quarter saw a jump in the amounts contractors passed on to owners for cost increases in materials, plumbing and electrical equipment. Lumber rates fell during this same quarter and prices should continue to slide closer to pre-pandemic levels. Statewide construction permits issued reflected modest gains in new housing units as valuations shot up 13%. Higher mortgage rates are limiting the number of new home buyers while also slowing the pace of home price appreciation. Meanwhile the Infrastructure Investment and Jobs Act (IIJA) started to produce cash disbursements along with complex regulations. The construction forecast shifts from neutral to growth, reflecting materials price inflation and the uptick in the statewide permit results.

Business/Industry 12.6% | 3.5%
Continuing its pandemic bounce-back, first quarter returns shot up 10% and most of the group’s 21 unique business types posted gains over the prior year period. Even with supply chain and labor challenges, industrial products demand surged, and the electrical equipment sector saw significant growth. Technology demands and other B2B needs buoyed business services outcomes. The first quarter reflected a continuing need for medical/biotechnology apparatus and supplies (note future quarters may slow). Comprising a solid 25% of all B&I revenues, fulfillment centers remained flat compared to a year ago which had swelled from e-commerce sales previously allocated to countywide pools. HdL projects modest improvement in results for the next few quarters.

Food/Drugs 2.2% | 2.0%
While food sales are generally non-taxable items, non-food merchandise is still subject to sales taxes; grocery store’s quarter filings rose 3% and paced overall improvement from this category.

Drug stores also reported better totals. In contrast, cannabis retailers saw declines as competitiveness with unlicensed vendors and market saturation creeped into some regions. Supermarkets and drug stores integration of traditional shopping experiences with online technologies plus stronger demand for in-home delivery is persistent.

Looking ahead, households will tighten up budgets, yet moderate tax improvement is expected over the next year.

TOTAL 14.8% | 3.8%2021/22 | 2022/23
HdL Companies Consensus Forecast
June 2022 387
Item 21.

NATIONAL AND STATEWIDEECONOMIC DRIVERS
U.S. Real GDP Growth 4.1% | 2.1%
The economy has roared back from the brief pandemic-induced recession. In fact, many worry it is overheated and nearing the end of the decade-long expansionary period that began after the Great Recession. Inflation rates are at four-decade highs, driven in large part by strong consumer demand. Beacon Economics believes there is a very high probability of a recession in the next few years, although not likely in 2022.

A primary driver of this demand is the government stimulus that was injected into the U.S. economy during the pandemic – $6 trillion by Congress and another $5 trillion from the Federal Reserve in the form of quantitative easing. In retrospect, this was excessive. A look at national income data suggests the U.S. economy suffered $1.2 to $1.6 trillion in income losses in 2020 and the first half of 2021. The scale of the stimulus compared to the size of the loss and damage to the economy was oversized. All the extra cash in the economy pushed interest rates down, asset values surged, and as a result, spending has grown to unsustainably high levels.

Economist Herbet Stein wrote, “If something cannot go on forever, it will stop.” The Federal Reserve has finally accepted it cannot allow its loose monetary policy to continue forever. The realization that high inflation was not “transitory” came late, and the Fed only recently began removing cash from the economy by raising rates and through quantitative tightening. While the fundamentals of the U.S. economy are strong and will continue to be so over the short-term, the question is whether the inflated economy will pop in the next couple years and end in a serious recession or if the Fed will be able to slowly reduce the extra pressure in a measured manner. The latter seems increasingly unlikely. The Fed is expected to continue raising rates for the rest of the year.

Gasoline and diesel prices are at record highs, not just because Russian supply in the Ural region has been disrupted, but because refining capacity is severely limited. The greater bottleneck for increased production is at the level of refining capacity, not oil extraction.

While Urals are not meeting Western demand, they are still meeting demand. Notably India, and allegedly China, have been stocking up on this heavily discounted oil (discounted due to sanctions). Thus, the substantial crude needs of the world’s two most populous countries are likely to be met by the discounted Urals, serving as a pressure valve for what could be higher crude prices.

U.S. Unemployment Rate 4.2% | 3.4%
As normalization in economic activity gradually progressed, the U.S. unemployment rate fell in tandem. The two-month business cycle of 2020 (Feb-April) is a technical recession, but hardly representative of a natural business cycle. It was preceded by 128 consecutive months of economic expansion. Throughout these 128 months, the unemployment rate steadily trended lower, declining from 10.0% to

3.5%. As of May 2022, national unemployment rate stood at 3.6%, back to its pre-pandemic level.

The national labor market continues to be extremely tight across all sectors. According to the U.S. Bureau of Labor Statistics, there are a record high number of jobs available in the United States, placing upward pressure on wages. With no real signs of this situation changing, Beacon Economics expects a strong job market to continue for the foreseeable future.

CA Unemployment Rate 5.7% | 4.4%
California’s unemployment rate fell to 4.6% in April 2022, still higher than the national rate of 3.6%. The underperformance of California’s labor market is due to several interrelated factors. For one, there was a sizeable out-migration at the height of California’s pandemic-related restrictions, largely by the virtual/mobile workforce. Simultaneously, other U.S. regions were booming and attracted workers that may have been underutilized in California due to pandemic restrictions.

California’s labor force participation rate troughed in May 2020 to

59.8%, only to spike back to 61.3% in July 2020 and revert back to

59.8% by October 2020. Since November 2020, California’s labor force participation rate has been trending higher, most recently at

62.1%.

Since February 2020, the state’s labor force has contracted by 358,100 workers, a 1.8% decline. Notably, in all regions that cover the state’s major employment centers, the unemployment rate is now below the pre-pandemic rate. These figures tell us that, despite there being fewer workers employed in California than there were prior to the pandemic, for those seeking a job, there is ample work available.

CA Total Nonfarm Employment Growth 6.4% | 3.6%
There are currently 1.2 million job openings in California. To place this figure in context, in the five years prior to the pandemic, a period of economic expansion, there were 686,000 job openings in the state, on average.

Employment has returned to pre-pandemic levels in a growing number of sectors, and in the sectors where employment still lags, growth has been especially strong over the past year. From April 2021 to April 2022, employment grew fastest in Arts and Entertainment (34%), Accommodation and Food Services (19%), and Other Services (11%), which includes hair and nail salons. These sectors were the most affected by restrictions put in place to curb the spread of the COVID-19 virus and they will continue to outpace growth in other sectors of the economy throughout the year.

The labor market recovery has also been stronger in the inland parts of the state. There are more jobs today than there were prior to the pandemic in the Inland Empire, Sacramento, and Fresno. Bakersfield has had the next strongest recovery along this measure. Specifically in California, Logistics employment is now 18% higher than the pre- pandemic level, fueled by the continued and accelerated transition to online consumption.

CA Residential Building Permits 118,532 | 120,077 Home building permits will increase over the next year, but not enough to fundamentally improve the housing scarcity problem in California. In 2021, home building permits rose after a major decrease in 2020. Even with this upward trend continuing into 2022 and 2023, it is unlikely to meet Governor Newsom’s 2019 goal of

3.5 million new units by 2025.

CA Median Existing Home Price $669,680 | $686,369
In the first quarter of 2022, house prices in California averaged $685,000, an increase of 13% on a year-over-year basis. This compares to a 16% increase nationally. The tight supply fundamentals that have driven strong price growth since the outset of the pandemic have not changed, although elevated mortgage rates will constrain demand. Home building permits have been relatively flat since 2019, while new listings are comparable to levels in the pre-pandemic years. Continued constraints on supply will act as a buttress to house prices in the presence of declining demand in the face of rising mortgage rates.
2021/22 | 2022/23 2021/22 | 2022/23
HdL Companies Consensus Forecast
June 2022
Scan to view the HdL California Consensus
Forecast 1Q22 webinar recording. Email
[email protected] to learn more
about HdL services that can help your agency
maximize revenue.
388
Item 21.

Beacon Economics LLC
310.571.3399 | BeaconEcon.com
Beacon Economics has proven to be one of the most thorough and accurate economic research/analytical forecasting firms in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdL’s quarterly consensus updates. The collaboration and sharing of information between Beacon and HdL helps both companies enhance the accuracy of the work that they perform for their respective clients.

HdL Companies
714.879.5000 | [email protected] | hdlcompanies.com California’s allocation data trails actual sales activity by three to six months. HdL compensates for the lack of current information by reviewing the latest reports, statistics and perspectives from fifty or more economists, analysts and trade associations to reach a consensus on probable trends for coming quarters. The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client’s specific demographics, tax base and regional trends. 888.861.0220 | [email protected] | hdlcompanies.com 389
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Beaumont City CouncilAugust 16, 2022

Beaumont City Council
August 16, 2022