Agenda, special meeting — Fairfield City Council, February 1, 2022

NEW BUSINESS

1.Discussion and Direction Regarding Funding Options to Maintain Service Levels within Landscaping and Lighting Maintenance Districts Nos. 7, 11, and 13 Recommended Action
Receive report, open discussion, and provide direction to staff.

Funding Source
N/A
Contact:Chris Lewis, (707) 4287089
a

ADJOURN
Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the City of Fairfield to all or a majority of the Fairfield City Council less than 72 hours prior to that meeting are available for public inspection at City Hall, in the 4th floor lobby, 1000 Webster Street, Fairfield, California during normal business hours.

The City of Fairfield does not discriminate against any individual with a disability. City publications will Packet Page 1 of 28

CITY OF FAIRFIELDSPECIAL MEETINGTUESDAY, FEBRUARY 1, 2022; 5:30 PMVIA TELECONFERENCE: https://fairfieldca.zoom.us/j/84183030545?pwd=Wlh0NktTbTl3c0RyeVp6T1ZQMkNuZz09AGENDAPer AB 361 councilmembers may attend via teleconference. The public may attend the meeting viaZoom at: https://fairfieldca.zoom.us/j/84183030545?pwd=Wlh0NktTbTl3c0RyeVp6T1ZQMkNuZz09Or by phone: +1 669 900 6833 Webinar ID: 841 8303 0545 Passcode: 7074287400CALL TO ORDER 5:30 PMROLL CALLCouncilmember Pam Bertani Councilmember Cat MoyCouncilmember Doriss PanduroCouncilmemberChuck TimmCouncilmember Scott Tonnesen ViceMayor Rick VaccaroMayor Harry PricePUBLIC COMMENTS PROCESS FOR PUBLIC COMMENTSPersons wishing to address the City Council on subjects on the agenda may do so at this time. Thecouncil cannot discuss or take action on matters not on the agenda for this meeting. Please use the"raise your hand" feature or press *9 on your phone to request to speak. Speakers are limited to threeminutes per item.NEW BUSINESS1.Discussion and Direction Regarding Funding Options to Maintain Service Levels withinLandscaping and Lighting Maintenance Districts Nos. 7, 11, and 13Recommended ActionReceive report, open discussion, and provide direction to staff.Funding SourceN/AContact:Chris Lewis, (707) 4287089aADJOURNAny disclosable public records related to an open session item on a regular meeting agenda anddistributed by the City of Fairfield to all or a majority of the Fairfield City Council less than 72 hoursprior to that meeting are available for public inspection at City Hall, in the 4th floor lobby, 1000 Webster Street, Fairfield, California during normal business hours.

The City of Fairfield does not discriminate against any individual with a disability. City publications will be made available upon request in the appropriate format to persons with a disability. If you need an accommodation to attend or participate in this meeting due to a disability, please contact Amber Alexander, Deputy City Clerk, in advance of the meeting at (707) 4287402 or (707) 3995623 (TTY).

PUBLIC NOTIFICATION
I, Amber Alexander, Deputy City Clerk, do hereby certify that I have caused a true copy of the above notice and agenda to be delivered to each of the members of the Fairfield City Council, at the time and in the manner prescribed by law and that this agenda was posted at City Hall, 1000 Webster Street, Fairfield, California on January 27, 2022.

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Agenda Item No: 1.

AGENDA REPORT
DATE:February 1, 2022
TO:Mayor and City Council
FROM:David Gassaway, Interim City Manager
SUBJECT:Discussion and Direction Regarding Funding Options to Maintain Service Levels within Landscaping and Lighting Maintenance Districts Nos. 7, 11, and 13 RECOMMENDED ACTION
Receive report, open discussion, and provide direction to staff.

STATEMENT OF ISSUE
At the December 21, 2021, City Council Meeting, the council directed staff to consider funding options to address a reduction in services based on budget deficits in Landscape and Lighting Maintenance Districts (LLMDs) No. 7 Rolling Hills (Rolling Hills), No. 11 Paradise Valley North (Paradise Valley), and No. 13 North Cordelia (North Cordelia).

Staff presents various options for council consideration and recommends funding a loan to LLMD's No. 7, 11, and 13.

DISCUSSION
On December 21, 2021, the council met and considered an agenda report and resolutions 2021314, 2021315, and 2021316 related to LLMD's for Rolling Hills, Paradise Valley, and North Cordelia, respectively, and attached as Exhibit A. At that time, the council directed staff to consider options to address a proposed reduction in services due to insufficient assessment revenues.

Background
In 1991, the council adopted Resolution 91213B, "Establishing Policy for Development, Maintenance and Financing Standards for Residential Maintenance Districts," attached hereto as Exhibit B. As part of that policy, the council adopted the following provisions:

Section 1.G.1 "If any district has a deficit, the City Council may determine upon a recommendation by the Maintenance District Committee to enter into an agreement to loan money to the district with the stipulation that such money will be paid off with interestbased upon the City's cost of funds within a specified term of three to five years."
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1. City General and Administrative (G&A) Expenses;

2. Interior Street Lights;

3. Arterial Street Lights;

4. Arterial Median Maintenance: The General Fund contribution shall cover 50 percent of the costs to irrigate and maintain arterial median landscaping within any given Residential Maintenance District. ("Arterial median landscaping . . . creates a citywide benefit by creating aesthetic thoroughfares traveled by citizens at large.”)
Proposition 218
In 1996, the voters passed Proposition 218, which created additional requirements and limitations on the City's power to levy assessments. Proposition 218 requires the City to provide protest ballots to the owners of subject properties to increase assessments. If a "majority protest" exists, the City cannot increase the assessments. A majority protest exists if ballots submitted in opposition to the proposed increase exceed ballots submitted in favor of the proposed increase. The votes are weighted according to the proportional financial obligation of the property.

Options to Addressing Assessment Shortfalls
Due to these new limits, the City cannot increase assessments to keep pace with landscaping costs until the City complies with Proposition 218. Until the City submits the proposed increase to the property owners, the City has the following options to address shortfalls in assessment revenues:

Option #1A:Authorize the use of general fund money as a loan to cover revenue shortfalls during the period from May 1, 2022 (anticipated) to June 30, 2022, to be repaid if the City increases assessments and directs staff to commence Proposition 218 proceedings to increase assessments for LLMDs No. 7, 11, and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202223.

Option #1B:Authorize the use of general fund money as a loan to cover revenue shortfalls during the period from May 1, 2022 (anticipated) to June 30, 2023, to be repaid if the City increases assessments and directs staff to commence Proposition 218 proceedings to increase assessments for LLMDs No. 7, 11 and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202324.

Option #2A:Authorize the use of general fund money as a contribution to cover revenue shortfalls during the period from May 1, 2022 (anticipated) to June 30, 2022, and direct staff to commence Proposition 218 proceedings to increase assessments for LLMDs No. 7, 11 and 13.

If approved, the proposed increase would be effective beginning Fiscal Year 202223.

Option #2B:Authorize the use of general fund money as a contribution to cover revenue shortfalls during the period from May 1, 2022 (anticipated) to June 30, 2023, and direct staff to commence Proposition 218 proceedings to increase assessments for LLMDs No. 7, 11 and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202324.

Option #3A:Take no action to cover revenue shortfalls, direct staff to reduce service to balance the budget for LLMDs No. 7, 11, and 13, and commence Proposition 218 proceedings to increase assessments for LLMDs No. 7, 11, and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202223.

Option #3B:Take no action to cover revenue shortfalls, direct staff to reduce service to balance the Packet Page 4 of 28

Agenda Item No: 1.AGENDA REPORTDATE:February 1, 2022 TO:Mayor and City CouncilFROM:David Gassaway, Interim City ManagerSUBJECT:Discussion and Direction Regarding Funding Options to Maintain Service Levels withinLandscaping and Lighting Maintenance Districts Nos. 7, 11, and 13RECOMMENDED ACTIONReceive report, open discussion, and provide direction to staff.STATEMENT OF ISSUEAt the December 21, 2021, City Council Meeting, the council directed staff to consider funding optionsto address a reduction in services based on budget deficits in Landscape and Lighting MaintenanceDistricts (LLMDs) No. 7 Rolling Hills (Rolling Hills), No. 11 Paradise Valley North (Paradise Valley),and No. 13 North Cordelia (North Cordelia).Staff presents various options for council consideration and recommends funding a loan to LLMD's No.7, 11, and 13. DISCUSSIONOn December 21, 2021, the council met and considered an agenda report and resolutions 2021314,2021315, and 2021316 related to LLMD's for Rolling Hills, Paradise Valley, and North Cordelia,respectively, and attached as Exhibit A. At that time, the council directed staff to consider options toaddress a proposed reduction in services due to insufficient assessment revenues. BackgroundIn 1991, the council adopted Resolution 91213B, "Establishing Policy for Development, Maintenanceand Financing Standards for Residential Maintenance Districts," attached hereto as Exhibit B. As partof that policy, the council adopted the following provisions: Section 1.G.1 "If any district has a deficit, the City Council may determine upon a recommendation bythe Maintenance District Committee to enter into an agreement to loan money to the district with thestipulation that such money will be paid off with interestbased upon the City's cost of funds within aspecified term of three to five years."Section 1.I "The City Council may at their discretion make contributions to districts from the Generalfund to cover the cost of providing services determined not just to benefit the district, but the City atlarge. Such contributions may include direct deposits to maintenance district accounts[.]" Section 1.I “The General Fund Contribution . . . shall cover the following: 1. City General and Administrative (G&A) Expenses; 2. Interior Street Lights; 3. Arterial Street Lights; 4. Arterial Median Maintenance: The General Fund contribution shall cover 50 percent of the costs toirrigate and maintain arterial median landscaping within any given Residential MaintenanceDistrict. ("Arterial median landscaping . . . creates a citywide benefit by creating aestheticthoroughfares traveled by citizens at large.”) Proposition 218In 1996, the voters passed Proposition 218, which created additional requirements and limitations onthe City's power to levy assessments. Proposition 218 requires the City to provide protest ballots to theowners of subject properties to increase assessments. If a "majority protest" exists, the City cannotincrease the assessments. A majority protest exists if ballots submitted in opposition to the proposedincrease exceed ballots submitted in favor of the proposed increase. The votes are weighted accordingto the proportional financial obligation of the property. Options to Addressing Assessment ShortfallsDue to these new limits, the City cannot increase assessments to keep pace with landscaping costsuntil the City complies with Proposition 218. Until the City submits the proposed increase to theproperty owners, the City has the following options to address shortfalls in assessment revenues:Option #1A:Authorize the use of general fund money as a loan to cover revenue shortfalls during theperiod from May 1, 2022 (anticipated) to June 30, 2022, to be repaid if the City increases assessmentsand directs staff to commence Proposition 218 proceedings to increase assessments for LLMDs No.7, 11, and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202223. Option #1B:Authorize the use of general fund money as a loan to cover revenue shortfalls during theperiod from May 1, 2022 (anticipated) to June 30, 2023, to be repaid if the City increases assessmentsand directs staff to commence Proposition 218 proceedings to increase assessments for LLMDs No.7, 11 and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202324.Option #2A:Authorize the use of general fund money as a contribution to cover revenue shortfallsduring the period from May 1, 2022 (anticipated) to June 30, 2022, and direct staff to commenceProposition 218 proceedings to increase assessments for LLMDs No. 7, 11 and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202223. Option #2B:Authorize the use of general fund money as a contribution to cover revenue shortfallsduring the period from May 1, 2022 (anticipated) to June 30, 2023, and direct staff to commenceProposition 218 proceedings to increase assessments for LLMDs No. 7, 11 and 13. If approved, theproposed increase would be effective beginning Fiscal Year 202324. Option #3A:Take no action to cover revenue shortfalls, direct staff to reduce service to balance thebudget for LLMDs No. 7, 11, and 13, and commence Proposition 218 proceedings to increaseassessments for LLMDs No. 7, 11, and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202223.

Option #3B:Take no action to cover revenue shortfalls, direct staff to reduce service to balance the budget for LLMDs No. 7, 11, and 13, and commence Proposition 218 proceedings to increase assessments for LLMDs No. 7, 11, and 13. If approved, the proposed increase would be effective beginning Fiscal Year 202324.

Recommendation
Staff recommends option #1A or #1B.

FINANCIAL IMPACT
Staff will provide the loan scenarios for the three districts on February 1, 2022.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
City staff sent letters to all affected homeowners in LLMDs 7, 11, and 13 on January 11, 2022. Two public outreach meetings were held on Tuesday, January 25, 2022, and Wednesday, January 26, 2022.

ALTERNATIVE ACTION
The council may choose to take no action, and staff will reduce services to balance budget shortfalls in Landscape and Lighting Maintenance Districts. Staff will not commence proceedings to increase assessments and will continue to work towards a process to bring funding for each LLMD up to the levels desired by the community.

STAFF CONTACT
Chris Lewis, Management Analyst
(707) 4287089
[email protected]
COORDINATED WITH
City Attorney's Office, City Manager's Office, Public Works Department ATTACHMENTS:

Description
Exhibit A: December 21, 2021 Agenda Report and Resos
Exhibit B: Resolution 91213B
REVIEWERS:

Reviewer Action Date
Alexander, Amber Approved 1/25/2022 1:10 PM
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Agenda Item No: 12.

AGENDA REPORT
DATE:December 21, 2021
TO:Mayor and City Council
FROM:David Gassaway, Acting City Manager
SUBJECT:Resolution 2021314 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with New Image Landscape Company, Inc. for Landscape Maintenance Services in Landscaping and Lighting Maintenance District No. 7 – Rolling Hills; and Resolution 2021315 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with New Image Landscape Company, Inc. for Landscape Maintenance Services in Landscaping and Lighting Maintenance District No. 11 – Paradise Valley North; and Resolution 2021316 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with New Image Landscape Company, Inc. for Landscape Maintenance Services in Landscaping and Lighting Maintenance District No. 13 – North Cordelia; and Resolution 2021317 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with Dominguez Landscape Services, Inc. for Landscape Maintenance Services in Landscaping and Lighting Maintenance Districts No. 3 – Waterman Highlands, No. 6 – Peppertree, and No. 8 – Kolob
RECOMMENDED ACTION
Adopt resolutions.

STATEMENT OF ISSUE
Projected budget shortfalls in three Landscaping and Lighting Maintenance Districts (LLMDs); LLMD No. 7 – Rolling Hills (Rolling Hills), No. 11 – Paradise Valley North (Paradise Valley), and No. 13 – North Cordelia (North Cordelia), necessitate a reduction in maintenance services to avoid future deficits. The resolutions attached authorize the city manager to enter into three individual contractor service agreements with New Image Landscape Company (New Image) for reduced scopes of work beginning January 1, 2022, and ending December 31, 2023. Contract amounts will be $162,624 for Rolling Hills, $179,904 for Paradise Valley, and $627,608 for North Cordelia.

Additionally, the current contracts for LLMD No. 3 – Waterman Highlands (Waterman), No. 6 – Peppertree (Peppertree), and No. 8 – Kolob (Kolob) are on combined district maintenance contracts with Dominguez Landscape Services, Inc. (Dominguez) that will either be terminated due to the changes above or will expire on December 31, 2021. The resolution attached authorizes the city manager to enter into one service agreement with Dominguez for combined landscape maintenance services for Waterman, Peppertree, and Kolob beginning January 1, 2022, and ending December 31, 2023. The total contract amount will be $150,516.

DISCUSSION
During the July 7, 2021, public hearing to approve the annual fiscal year (FY) 20212022 assessment rates and budgets for all LLMDs, staff reported to City Council that a reduction in services for Rolling Hills, Paradise Valley, and North Cordelia was required due to projected budget deficits if the districts continued to provide landscape services at the existing level.

Currently, to maximize economies of scale, services for Rolling Hills, Kolob, and Waterman are on one combined contract, which expires on December 31, 2021. Similarly, Peppertree and Paradise Valley are under one combined contract expiring on December 31, 2022. Services for North Cordelia are provided on an individual contract expiring Packet Page 6 of 28Attachment 1 Page 1 of 10

In July 2021, staff initiated discussions with Dominguez to reduce the scopes of work for the Rolling Hills, Paradise Valley, and North Cordelia contracts through the end of the contract term and to exercise the option to renew the combined Rolling Hills/Kolob/Waterman and North Cordelia contracts for an additional term. Negotiations were unsuccessful. Staff informed Dominguez of the City's intent not to renew the Rolling Hills/Kolob/Waterman and North Cordelia contracts upon their expiration on December 31, 2021, to terminate the Paradise Valley/Peppertree contract, and to request proposals for services for all districts under new agreements.

On October 19, 2021, staff solicited proposals for three separate contracts with reduced scopes of work for Rolling Hills, Paradise Valley, and North Cordelia individually and for a combined contract for Waterman, Peppertree, and Kolob with no substantial changes to the scope of work. The service reductions for Rolling Hills, Paradise Valley, and North Cordelia were determined based on three priority levels. Priority level 1 was defined as essential work to safeguard public safety, such as clearing walkways, linesofsight, and potential fire hazards. Priority level 2 is characterized as work intended to preserve the health and quality of the existing landscape to minimize any potential costs to restore the landscape in future years. Finally, priority level 3 encompasses all other work and nonessential services. Due to the required budget reductions, the proposed scopes of work are limited primarily to priority level 1 and 2 services.

Below is a brief description of the budget and proposed scope of work for each district (see Attachment No. 1 for a detailed listing of service reductions):

Rolling Hills
The maximum assessment rates for the Rolling Hills district are $250 for the Serpas Ranch development and $300 for the Rolling Hills development. These rates have remained unchanged since the 1990s and do not include an automatic inflator. The district currently receives approximately $330,000 in assessment revenue and General Fund contributions per year. In FY 20202021, the district's expenses were over $580,000, causing a $250,000 cash deficit covered by the district's fund balance. The majority of these expenses were for landscape maintenance and water services/consumption at $330,000 and $130,000, respectively. For the district to maintain a balanced budget, avoid any future deficits, and begin establishing a reserve for unexpected repairs, the annual budget for landscape maintenance and water services/consumption must be reduced to below $90,000 and $120,000, respectively.

The proposed scope of work for Rolling Hills includes basic lawn mowing, annual shrub and ground cover pruning, high weed mowing, vditch and drain cleaning, and leaf, litter, and trash removal. The total yearly cost for these services is $81,312 for the initial term beginning January 1, 2022, and ending on December 31, 2023.

Irrigation maintenance and repair may be provided for an additional cost. New Image was selected as the most qualified provider for this agreement.

Paradise Valley
The maximum assessment rate for the Paradise Valley district is $195 per parcel. This rate has remained unchanged since 1995 and does not include an automatic inflator. The district currently receives approximately $270,000 in assessment revenue and General Fund contributions per year. In FY 20202021, the district's expenses exceeded revenues by approximately $18,000. The majority of these expenses were for landscaping maintenance and water services/consumption at $155,000 and $65,000, respectively. For the district to maintain a balanced budget, avoid any future deficits, and begin establishing a reserve for unexpected repairs, the annual landscape maintenance budget must be reduced to approximately $90,000.

The proposed scope of work for Paradise Valley includes basic lawn mowing and edging, annual shrub and ground cover pruning and mowing, basic irrigation sprinkler emitter repairs, high weed mowing, vditch, and drain cleaning, and leaf, litter, and trash removal. New Image was selected as the most qualified provider for this agreement. The total annual cost for these services is $89,952 for the initial term beginning January 1, 2022, and ending on December 31, 2023.

North Cordelia
The maximum assessment rates for the North Cordelia district were established for each new development between 1996 and 2015 and range from $170 to $850 per parcel. The Hidden Meadows, Village Oaks, and Jayo subdivisions are the only developments that include an automatic inflator. The district currently receives approximately $630,000 in assessment revenue and General Fund contributions per year. In FY 20202021, the district's expenses exceeded revenues by approximately $42,000. The majority of these expenses were for landscaping maintenance, water services/consumption, and utilities at $340,000, $101,000, and $43,000, Packet Page 7 of 28Attachment 1 Page 2 of 10

The proposed scope of work for North Cordelia includes lawn mowing, edging, and weed control, annual shrub and ground cover pruning, mowing, and pest/disease control, basic irrigation sprinkler emitter repairs, high weed mowing, vditch and drain cleaning, leaf, litter, and trash removal, and pond maintenance. New Image was selected as the most qualified provider for this agreement. The total annual cost for these services is $313,804 for the initial term beginning January 1, 2022, and ending on December 31, 2023.

Waterman, Peppertree, and Kolob
No significant changes were made to the scope of work for the Waterman, Peppertree, and Kolob districts.

Dominguez was selected as the most qualified provider for this agreement. The total annual cost for these services is $75,258 for the initial term beginning January 1, 2022, and ending on December 31, 2023.

Dominguez and New Image have been longstanding landscape service providers for the City and have demonstrated competence and professional qualifications to perform the services required. In accordance with Chapter 28.31 of the Fairfield Municipal Code for the procurement of landscape maintenance services, the staff is recommending approval for three individual service agreements with New Image for landscape maintenance services in Rolling Hills, Paradise Valley, and North Cordelia, and one service agreement with Dominguez for combined landscape maintenance services in Waterman, Peppertree, and Kolob. Each agreement will have the option to extend for up to two additional terms of up to 24 months, each term including a negotiated compensation adjustment nottoexceed the June San Francisco OaklandHayward Consumer Price Index for Urban Wage Earners and Clerical Workers (not seasonally adjusted for all items) upon mutual written agreement of both parties.

Upon approval of the Paradise Valley service agreement and combined Waterman/Peppertree/Kolob service agreement, a formal notice of termination will be sent to Dominguez, which will terminate the Paradise Valley/Peppertree agreement effective December 31, 2021.

FINANCIAL IMPACT
Total authorization for the Rolling Hills service agreement is $162,624 for an initial 24month term (nottoexceed $81,312 per year) and is budgeted in the LLMD No. 7 – Rolling Hills Fund (Fund 077, Division 68, Responsibility Code 001).

Total authorization for the Paradise Valley service agreement is $179,904 for an initial 24month term (nottoexceed $89,952 per year) and is budgeted in the LLMD No. 11 – Paradise Valley Fund (Fund 081, Division 68, Responsibility Code 001).

Total authorization for the North Cordelia service agreement is $627,608 for the initial 24month term (nottoexceed $313,804 per year) and is budgeted in the LLMD No. 13 – North Cordelia Fund (Fund 085, Division 68, Responsibility Code 001).

Total authorization for the Waterman, Peppertree, and Kolob service agreement is $150,516 for the initial 24month term (nottoexceed $75,258 per year) and is budgeted in the LLMD No. 3 – Waterman Fund (Fund 073, Division 68, Responsibility Code 001), the LLMD No. 6 – Peppertree Fund (Fund 076, Division 68, Responsibility Code 001), and the LLMD No. 8 – Kolob Fund (Fund 078, Division 68, Responsibility Code 001).

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A notice was sent to the residents within LLMD #7, #11, and #13 the week of December 12, 2021, to advise them of the upcoming service reductions. The City has contracted with NBS Government Finance Group (NBS) to assist with future public engagement efforts related to the district.

ALTERNATIVE ACTION
If the council has any questions concerning the service agreements, this item may be rescheduled until the next council meeting to allow staff to provide the necessary backup.

STAFF CONTACT
Chris Lewis, Management Analyst
(707) 4287089
[email protected]
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Agenda Item No: 12.AGENDA REPORTDATE:December 21, 2021 TO:Mayor and City CouncilFROM:David Gassaway, Acting City ManagerSUBJECT:Resolution 2021314 of the City Council of the City of Fairfield Approving a Contractor ServiceAgreement with New Image Landscape Company, Inc. for Landscape Maintenance Services inLandscaping and Lighting Maintenance District No. 7 – Rolling Hills; andResolution 2021315 of the City Council of the City of Fairfield Approving a Contractor ServiceAgreement with New Image Landscape Company, Inc. for Landscape Maintenance Services inLandscaping and Lighting Maintenance District No. 11 – Paradise Valley North; andResolution 2021316 of the City Council of the City of Fairfield Approving a Contractor ServiceAgreement with New Image Landscape Company, Inc. for Landscape Maintenance Services inLandscaping and Lighting Maintenance District No. 13 – North Cordelia; andResolution 2021317 of the City Council of the City of Fairfield Approving a Contractor ServiceAgreement with Dominguez Landscape Services, Inc. for Landscape Maintenance Services inLandscaping and Lighting Maintenance Districts No. 3 – Waterman Highlands, No. 6 – Peppertree,and No. 8 – KolobRECOMMENDED ACTION Adopt resolutions.STATEMENT OF ISSUE Projected budget shortfalls in three Landscaping and Lighting Maintenance Districts (LLMDs); LLMD No. 7 – RollingHills (Rolling Hills), No. 11 – Paradise Valley North (Paradise Valley), and No. 13 – North Cordelia (North Cordelia),necessitate a reduction in maintenance services to avoid future deficits. The resolutions attached authorize the citymanager to enter into three individual contractor service agreements with New Image Landscape Company (NewImage) for reduced scopes of work beginning January 1, 2022, and ending December 31, 2023. Contract amounts willbe $162,624 for Rolling Hills, $179,904 for Paradise Valley, and $627,608 for North Cordelia.Additionally, the current contracts for LLMD No. 3 – Waterman Highlands (Waterman), No. 6 – Peppertree(Peppertree), and No. 8 – Kolob (Kolob) are on combined district maintenance contracts with Dominguez LandscapeServices, Inc. (Dominguez) that will either be terminated due to the changes above or will expire on December 31,2021. The resolution attached authorizes the city manager to enter into one service agreement with Dominguez forcombined landscape maintenance services for Waterman, Peppertree, and Kolob beginning January 1, 2022, andending December 31, 2023. The total contract amount will be $150,516.DISCUSSIONDuring the July 7, 2021, public hearing to approve the annual fiscal year (FY) 20212022 assessment rates andbudgets for all LLMDs, staff reported to City Council that a reduction in services for Rolling Hills, Paradise Valley, andNorth Cordelia was required due to projected budget deficits if the districts continued to provide landscape services atthe existing level.Currently, to maximize economies of scale, services for Rolling Hills, Kolob, and Waterman are on one combinedcontract, which expires on December 31, 2021. Similarly, Peppertree and Paradise Valley are under one combinedcontract expiring on December 31, 2022. Services for North Cordelia are provided on an individual contract expiringDecember 31, 2021. Dominguez provides all services.In July 2021, staff initiated discussions with Dominguez to reduce the scopes of work for the Rolling Hills, ParadiseValley, and North Cordelia contracts through the end of the contract term and to exercise the option to renew thecombined Rolling Hills/Kolob/Waterman and North Cordelia contracts for an additional term. Negotiations wereunsuccessful. Staff informed Dominguez of the City's intent not to renew the Rolling Hills/Kolob/Waterman and NorthCordelia contracts upon their expiration on December 31, 2021, to terminate the Paradise Valley/Peppertree contract,and to request proposals for services for all districts under new agreements.On October 19, 2021, staff solicited proposals for three separate contracts with reduced scopes of work for RollingHills, Paradise Valley, and North Cordelia individually and for a combined contract for Waterman, Peppertree, andKolob with no substantial changes to the scope of work. The service reductions for Rolling Hills, Paradise Valley, andNorth Cordelia were determined based on three priority levels. Priority level 1 was defined as essential work tosafeguard public safety, such as clearing walkways, linesofsight, and potential fire hazards. Priority level 2 ischaracterized as work intended to preserve the health and quality of the existing landscape to minimize any potentialcosts to restore the landscape in future years. Finally, priority level 3 encompasses all other work and nonessentialservices. Due to the required budget reductions, the proposed scopes of work are limited primarily to priority level 1and 2 services.Below is a brief description of the budget and proposed scope of work for each district (see Attachment No. 1 for adetailed listing of service reductions):Rolling HillsThe maximum assessment rates for the Rolling Hills district are $250 for the Serpas Ranch development and $300for the Rolling Hills development. These rates have remained unchanged since the 1990s and do not include anautomatic inflator. The district currently receives approximately $330,000 in assessment revenue and GeneralFund contributions per year. In FY 20202021, the district's expenses were over $580,000, causing a $250,000cash deficit covered by the district's fund balance. The majority of these expenses were for landscapemaintenance and water services/consumption at $330,000 and $130,000, respectively. For the district to maintaina balanced budget, avoid any future deficits, and begin establishing a reserve for unexpected repairs, the annualbudget for landscape maintenance and water services/consumption must be reduced to below $90,000 and$120,000, respectively.The proposed scope of work for Rolling Hills includes basic lawn mowing, annual shrub and ground coverpruning, high weed mowing, vditch and drain cleaning, and leaf, litter, and trash removal. The total yearly cost forthese services is $81,312 for the initial term beginning January 1, 2022, and ending on December 31, 2023.Irrigation maintenance and repair may be provided for an additional cost. New Image was selected as the mostqualified provider for this agreement.Paradise ValleyThe maximum assessment rate for the Paradise Valley district is $195 per parcel. This rate has remainedunchanged since 1995 and does not include an automatic inflator. The district currently receives approximately$270,000 in assessment revenue and General Fund contributions per year. In FY 20202021, the district'sexpenses exceeded revenues by approximately $18,000. The majority of these expenses were for landscapingmaintenance and water services/consumption at $155,000 and $65,000, respectively. For the district to maintain abalanced budget, avoid any future deficits, and begin establishing a reserve for unexpected repairs, the annuallandscape maintenance budget must be reduced to approximately $90,000.The proposed scope of work for Paradise Valley includes basic lawn mowing and edging, annual shrub andground cover pruning and mowing, basic irrigation sprinkler emitter repairs, high weed mowing, vditch, and draincleaning, and leaf, litter, and trash removal. New Image was selected as the most qualified provider for thisagreement. The total annual cost for these services is $89,952 for the initial term beginning January 1, 2022, andending on December 31, 2023.North CordeliaThe maximum assessment rates for the North Cordelia district were established for each new developmentbetween 1996 and 2015 and range from $170 to $850 per parcel. The Hidden Meadows, Village Oaks, and Jayosubdivisions are the only developments that include an automatic inflator. The district currently receivesapproximately $630,000 in assessment revenue and General Fund contributions per year. In FY 20202021, thedistrict's expenses exceeded revenues by approximately $42,000. The majority of these expenses were forlandscaping maintenance, water services/consumption, and utilities at $340,000, $101,000, and $43,000,respectively. For the district to maintain a balanced budget, avoid any future deficits, and begin establishing areserve for unexpected repairs, the annual landscape maintenance budget must be reduced to approximately$315,000.The proposed scope of work for North Cordelia includes lawn mowing, edging, and weed control, annual shruband ground cover pruning, mowing, and pest/disease control, basic irrigation sprinkler emitter repairs, high weedmowing, vditch and drain cleaning, leaf, litter, and trash removal, and pond maintenance. New Image wasselected as the most qualified provider for this agreement. The total annual cost for these services is $313,804 forthe initial term beginning January 1, 2022, and ending on December 31, 2023.Waterman, Peppertree, and KolobNo significant changes were made to the scope of work for the Waterman, Peppertree, and Kolob districts.Dominguez was selected as the most qualified provider for this agreement. The total annual cost for theseservices is $75,258 for the initial term beginning January 1, 2022, and ending on December 31, 2023.Dominguez and New Image have been longstanding landscape service providers for the City and have demonstratedcompetence and professional qualifications to perform the services required. In accordance with Chapter 28.31 of theFairfield Municipal Code for the procurement of landscape maintenance services, the staff is recommending approvalfor three individual service agreements with New Image for landscape maintenance services in Rolling Hills, ParadiseValley, and North Cordelia, and one service agreement with Dominguez for combined landscape maintenance servicesin Waterman, Peppertree, and Kolob. Each agreement will have the option to extend for up to two additional terms ofup to 24 months, each term including a negotiated compensation adjustment nottoexceed the June San FranciscoOaklandHayward Consumer Price Index for Urban Wage Earners and Clerical Workers (not seasonally adjusted for allitems) upon mutual written agreement of both parties.Upon approval of the Paradise Valley service agreement and combined Waterman/Peppertree/Kolob serviceagreement, a formal notice of termination will be sent to Dominguez, which will terminate the ParadiseValley/Peppertree agreement effective December 31, 2021.FINANCIAL IMPACTTotal authorization for the Rolling Hills service agreement is $162,624 for an initial 24month term (nottoexceed$81,312 per year) and is budgeted in the LLMD No. 7 – Rolling Hills Fund (Fund 077, Division 68, Responsibility Code001).Total authorization for the Paradise Valley service agreement is $179,904 for an initial 24month term (nottoexceed$89,952 per year) and is budgeted in the LLMD No. 11 – Paradise Valley Fund (Fund 081, Division 68, ResponsibilityCode 001).Total authorization for the North Cordelia service agreement is $627,608 for the initial 24month term (nottoexceed$313,804 per year) and is budgeted in the LLMD No. 13 – North Cordelia Fund (Fund 085, Division 68, ResponsibilityCode 001).Total authorization for the Waterman, Peppertree, and Kolob service agreement is $150,516 for the initial 24monthterm (nottoexceed $75,258 per year) and is budgeted in the LLMD No. 3 – Waterman Fund (Fund 073, Division 68,Responsibility Code 001), the LLMD No. 6 – Peppertree Fund (Fund 076, Division 68, Responsibility Code 001), andthe LLMD No. 8 – Kolob Fund (Fund 078, Division 68, Responsibility Code 001).PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONA notice was sent to the residents within LLMD #7, #11, and #13 the week of December 12, 2021, to advise them of theupcoming service reductions. The City has contracted with NBS Government Finance Group (NBS) to assist withfuture public engagement efforts related to the district.ALTERNATIVE ACTIONIf the council has any questions concerning the service agreements, this item may be rescheduled until the next councilmeeting to allow staff to provide the necessary backup.STAFF CONTACT Chris Lewis, Management Analyst
(707) 4287089
[email protected]
COORDINATED WITH
City Attorney's Office
ATTACHMENTS:

Description
Attachment 1: Proposed Service Reduction Listing by District Attachment 2: Proposed Resolution LLMD No. 7 Rolling Hills Attachment 3: Proposed Agreement LLMD No. 7
Attachment 4: Proposed Resolution LLMD No. 11 Paradise Valley Attachment 5: Proposed Agreement LLMD No. 11
Attachment 6: Proposed Resolution LLMD No. 13 North Cordelia Attachment 7: Proposed Agreement LLMD No. 13
Attachment 8: Proposed Resolution LLMD No. 3 Waterman Highlands, No. 6 Peppertree & No. 8 Kolob Attachment 9: Proposed Agreement LLMD No. 3, No. 6 & No, 8 REVIEWERS:

Reviewer Action Date
Kaushal, Paul Approved 12/14/2021 11:29 AM
Alexander, Amber Approved 12/14/2021 11:39 AM
Alexander, Amber Approved 12/14/2021 11:42 AM
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CITY OF FAIRFIELD
RESOLUTION NO. 2021-314

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING A CONTRACTOR

SERVICE AGREEMENT WITH NEW IMAGE LANDSCAPE COMPANY FOR LANDSCAPE

MAINTENANCE SERVICES IN THE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 7— ROLLING HILLS
WHEREAS, Dominguez Landscape Services, Inc. (Dominguez) currently provides landscape maintenance services for Landscape and Lighting Maintenance Districts (LLMD) No. 3 — Waterman Highlands, No. 7 — Rolling Hills, and No. 8 — Kolob under one contractor service agreement which is scheduled to expire on December 31, 2021; and WHEREAS, on July 7, 2021, staff informed the council that LLMD No. 7 — Rolling Hills required a reduction of services in fiscal year (FY) 2021-2022 due to a projected budget deficit if the district continued to provide landscape services at the existing level; and WHEREAS, on October 19, 2021, staff requested proposals from qualified landscape maintenance service providers for services in LLMD No. 7— Rolling Hills; and WHEREAS, New Image Landscape Company (New Image) was selected as the most qualified bidder for the LLMD No. 7 — Rolling Hills landscape maintenance service agreement; and WHEREAS, New Image has been a long-standing landscape service provider for the City and has demonstrated competence and professional qualifications to perform the services required; and
WHEREAS, pursuant to Chapter 28.31 of the Fairfield Municipal Code, contracts for landscape maintenance services may be let on the basis of demonstrated competence and professional qualifications; and
WHEREAS, funding for these services have been appropriated in LLMD No. 7 — Rolling Hills budget for FY 2021-2022 and 2022-2023.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The city manager is hereby authorized and directed to execute on behalf of the City of Fairfield a contractor services agreement (Agreement) substantially in the form attached between the City of Fairfield and New Image Landscape Company for landscape maintenance services in the LLMD No. 7 — Rolling Hills in the amount of $162,624, not to exceed $81,312 per year, for an initial term beginning January 1, 2022, and ending December 31, 2023.

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RES. NO. 2021-314

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Section 2. The city manager is hereby authorized to extend the Agreement for up to two additional terms of up to 24 months each term including a negotiated compensation adjustment not-to-exceed the June San Francisco-Oakland-Hayward Consumer Price Index for Urban Wage Earners and Clerical Workers (not seasonally adjusted for all items) upon mutual written agreement of both parties.

Section 3. The public works director is authorized and directed to do all things necessary to implement the Agreement.

PASSED AND ADOPTED this 21' day of December, 2021, by the following vote:

AYES: COUNCILMEMBERS: PRICE/.,,;NIJ-Mei'/PANDURO/TIMM/TONNESEN/VACCARO NOES: COUNCILMEMBERS: /Vaiic
ABSENT: COUNCILMEMBERS: 86(111411 rill y
ABSTAIN: COUNCILMEMBERS: Mane
MAYOR
ATTEST:
kaA€111

CITY CLERK
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CITY OF FAIRFIELD
RESOLUTION NO. 2021-315

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING A CONTRACTOR

SERVICE AGREEMENT WITH NEW IMAGE LANDSCAPE COMPANY FOR LANDSCAPE

MAINTENANCE SERVICES IN THE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 11— PARADISE VALLEY NORTH
WHEREAS, Dominguez Landscape Services, Inc. (Dominguez) currently provides landscape maintenance services for Landscape and Lighting Maintenance Districts (LLMD) No. 6 — Peppertree and No. 11 — Paradise Valley North under one contractor service agreement which is scheduled to expire on December 31, 2022; and
WHEREAS, on July 7, 2021, staff informed the council that LLMD No. 11 — Paradise Valley North required a reduction of services in fiscal year (FY) 2021-2022 due to a projected budget deficit if the district continued to provide landscape services at the existing level; and WHEREAS, pursuant to Section 13 of the current service agreement with Dominguez for LLMDs No. 6 — Peppertree and No. 11 — Paradise Valley North, the City will exercise the right to terminate the agreement for convenience effective December 31, 2021; and WHEREAS, on October 19, 2021, staff requested proposals from qualified landscape maintenance service providers for services in LLMD No. 11— Paradise Valley North; and WHEREAS, New Image Landscape Company (New Image) was selected as the most qualified bidder for the LLMD No. 11 — Paradise Valley North landscape maintenance service agreement; and
WHEREAS, New Image has been a long-standing landscape service provider for the City and has demonstrated competence and professional qualifications to perform the services required; and
WHEREAS, pursuant to Chapter 28.31 of the Fairfield Municipal Code, contracts for landscape maintenance services may be let on the basis of demonstrated competence and professional qualifications; and
WHEREAS, funding for these services have been appropriated in LLMD No. 11 — Paradise Valley North budget for FY 2021-2022 and 2022-2023.

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RES. NO. 2021-315

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NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The city manager is hereby authorized and directed to execute on behalf of the City of Fairfield a contractor services agreement (Agreement) substantially in the form attached between the City of Fairfield and New Image Landscape Company for landscape maintenance services in the LLMD No. 11 — Paradise Valley North in the amount of $179,904, not-to-exceed 89,952 per year, for an initial term beginning January 1, 2022, and ending December 31, 2023.

Section 3. The public works director is authorized and directed to do all things necessary to implement the Agreement.

PASSED AND ADOPTED this 21' day of December, 2021, by the following vote:

AYES: COUNCILMEMBERS: PRICE PANDURO/TIMM/TONNESEN/VACCARO NOES: COUNCILMEMBERS: ' V OYj>
ABSENT: COUNCILMEMBERS: Errtaill J lD
1 y
ABSTAIN: COUNCILMEMBERS: IV one
aA •/141ck.

MAYOR
ATTEST:
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CITY CLERK
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CITY OF FAIRFIELD
RESOLUTION NO. 2021-316

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING A CONTRACTOR

SERVICE AGREEMENT WITH NEW IMAGE LANDSCAPE COMPANY FOR LANDSCAPE

MAINTENANCE SERVICES IN THE LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 13— NORTH CORDELIA
WHEREAS, Dominguez Landscape Services, Inc. (Dominguez) currently provides landscape maintenance services for Landscape and Lighting Maintenance Districts (LLMD) No. 13 — North Cordelia under a contractor service agreement which is scheduled to expire on December 31, 2021; and
WHEREAS, on July 7, 2021, staff informed the council that LLMD No. 13 — North Cordelia required a reduction of services in fiscal year (FY) 2021-2022 due to a projected budget deficit if the district continued to provide landscape services at the existing level; and WHEREAS, on October 19, 2021, staff requested proposals from qualified landscape maintenance service providers for services in LLMD No. 13 — North Cordelia; and WHEREAS, New Image Landscape Company (New Image) was selected as the most qualified bidder for the LLMD No. 13— North Cordelia landscape maintenance service agreement; and WHEREAS, New Image has been a long-standing landscape service provider for the City and has demonstrated competence and professional qualifications to perform the services required; and
WHEREAS, pursuant to Chapter 28.31 of the Fairfield Municipal Code, contracts for landscape maintenance services may be let on the basis of demonstrated competence and professional qualifications; and
WHEREAS, funding for these services have been appropriated in LLMD No. 13 — North Cordelia budget for FY 2021-2022 and 2022-2023.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The city manager is hereby authorized and directed to execute on behalf of the City of Fairfield a contractor services agreement (Agreement) substantially in the form attached between the City of Fairfield and New Image Landscape Company for landscape maintenance services in the LLMD No. 13 — North Cordelia in the amount of$627,608, not-to-exceed $313,804 per year, for an initial term beginning January 1, 2022, and ending December 31, 2023.

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RES. NO. 2021-316

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Section 3. The public works director is authorized and directed to do all things necessary to implement the Agreement.

PASSED AND ADOPTED this 21' day of December, 2021, by the following vote:

AYES: COUNCILMEMBERS: PRICE/ PANDURO/TIMM/TONNESEN/VACCARO NOES: COUNCILMEMBERS: Alone_
ABSENT: COUNCILMEMBERS: igU Mo
ABSTAIN: COUNCILMEMBERS: 'V One.

A _
MAYOR
ATTEST:

CITY C ERK
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Fairfield City CouncilFebruary 1, 2022

Fairfield City Council
February 1, 2022