Gonzales City Council
November 21, 2022

Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

A G E N D A

JOINT MEETING OF THE

GONZALES CITY COUNCIL AND

GONZALES SUCCESSOR AGENCY
CITY COUNCIL CHAMBERS – 117 FOURTH STREET
GONZALES, CA 93926
MONDAY, NOVEMBER 21, 2022
6:00 P.M.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

1. ROLL CALL- City Council/Successor Agency
Mayor Pro Tem/Vice Chair Scott Funk, Council/Agency Member Liz Silva, Council/Agency Member Lorraine Worthy, Council/Agency Member Paul Miller, Mayor/Chair Jose L. Rios
Youth Commissioners
Sherlyn Flores and Luke Naegle
Successor Agency Item

PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/88093508421 or call 1 (669) 900-6833 and use Meeting ID: 880 9350 8421.

If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.

If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on Monday, November 21st to the City Clerk at [email protected]

PRESENTATIONS

2. Consider Approval of, and Present Resolution No. 2022-79, A Resolution of the City Council of the City of Gonzales Expressing Appreciation to Patrick Dobbins

BUSINESS FROM THE PUBLIC

3. Business from the Public not on the Agenda; any member of the Public may address the Council/Agency for a period not to exceed three minutes on any subject not on the Agenda. The Council/Agency will listen to all communications but may take no action. *
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

CONSENT AGENDA
All matters listed under the Consent Agenda are considered routine by the City Council and will be adopted by one action of the Council unless any Council Member has a question or wishes to make a statement or discuss an item. In that event, the Mayor will remove the item from the Consent Calendar for separate consideration.

4. Approve the Joint City Council, Successor Agency, and Public Financing Authority - Regular Meeting- November 7, 2022 Minutes

5. Approve the City Council - Special Meeting - November 15, 2022 Minutes

6. Approve City Accounts Payable Warrants #47854-47909

7. Community Development Department Activity Report

8. Community Engagement & Strategic Partnerships Activity Report

9. Fire Department Activity Report

10. Police Department Activity Report

11. Public Works/City Engineer Department Activity Report

12. Recreation Department Activity Report

13. Consider Approval of Amendment #4 to the Lease Agreement with Laboratory Corporation of America for Continued Use of a Portion of the Old Medical Building at 133 Fourth Street

14. Consider Approval of Resolution No. 2022-81, A Resolution of the City Council of the City of Gonzales Authorizing the Interim City Manager or Designee to Execute and Submit a Clean Water State Revolving Fund Financial Assistance Application to the State Water Resources Control Board (SWRCB) for the Planning, Design, and Construction of the 1.0 Million Gallons a Day (MGD) Industrial Wastewater System, and Execute SRF Financial Assistance Agreements and Any Amendments with the SWRCB; and Resolution No. 2022-82, A Resolution of the City Council of the City of Gonzales Designating the Amount of the 1.0 Million Gallons a Day (MGD) Industrial Wastewater System Expenditures to be Reimbursed by Proceeds from the Clean Water State Revolving Fund

REGULAR AGENDA

15. Presentation by Legacy Signs and City staff to Explore Consideration of a Potential Communications and Revenue Generating Opportunity
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Receive presentation, and gather more information on the pros and cons of establishing a digital billboard on City-owned parcels; or develop an RFP seeking applicants like Legacy Signs to be potential partners in designing, building and establishing a digital billboard on City property that could generate revenue for the City

16. Consider Approval of Resolution No. 2022-80 A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Master Services Agreement with Lechowicz & Tseng and Approving Task #1 for Preparation of Water and Sewer Rate Studies for a Not-To-Exceed Fee of $68,000, which Includes a Contingency Budget of $8,410
a) Staff Report
b) Public Comment
c) Council Discussion
d) Council Action
Staff Recommended Action-Adopt Resolution No. 2022-80
*
Any writing or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at City Hall located at 147 Fourth Street, Gonzales, California, during normal business hours.

BUSINESS FROM CITY COUNCIL

17. City Council Board/Committee Reports
a. League of California Cities Monterey Bay Division
b. Association of Monterey Bay Area Governments
c. Monterey Salinas Transit
d. City & School Joint Steering Committee
e. Economic Development Committee

18. Oral Communications

BUSINESS FROM CITY MANAGER

19. Oral Communications

CLOSED SESSION
Any member of the public may address the Council on a closed session item appearing on the agenda.

Speakers shall have a limited time of three (3) minutes. Please be brief and to the point.

20. The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957(b)(1)- City Manager -Employment/Recruitment.

ADJOURNMENT

In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (831) 675-5000. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (CFR 35.102-

35.104 ADA Title II). This is a public meeting and as such, can be seen live by people present or online and is being recorded; therefore; anything you say or do here is public information. The recordings are available online.

AGENDA
ITEM
RESOLUTION NO. 2022 ___ -79

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

EXPRESSING APPRECIATION TO PATRICK DOBBINS
WHEREAS, the City of Gonzales is currently in the process of recruiting a new City Manager and is operating under the temporary guidance and authority of Interim City Manager Carmen Gil: and
WHEREAS, Interim City Manager Gil was compelled to take a planned leave of absence earlier than anticipated and as such, the Council had to call upon current Public Works Director/City Engineer Patrick Dobbins to step into the position of Acting City Manager on an expedited basis; and
WHEREAS, Patrick proved to be more than capable in assuming Acting City Manager duties, which included getting up to speed on a wide variety of issues, representing the City at numerous meetings with developers, consultants and members of the public, and overseeing and running City Council meetings, all during an election period and while continuing to meet his regular Public Works/Engineer responsibilities.

NOW THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Gonzales that the Council wishes to express its gratitude to Patrick Dobbins for his stellar stint as Acting City Manager. The Council is appreciative of his efforts and dedication to the wellbeing of the Gonzales Community! PASSED AND ADOPTED by the City Council of the City of Gonzales at a regular meeting duly held on the 21st day of November, 2022 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Jose L. Rios, The Honorable Mayor
ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 4
Attachment: Resol 22-79 (2585 : Resolution No. 2022-79 Appreciation to Patrick Dobbins) 2

MINUTES

JOINT MEETING OF THE

GONZALES CITY COUNCIL,

SUCCESSOR AGENCY, AND

GONZALES PUBLIC FINANCING AUTHORITY
MONDAY, NOVEMBER 7, 2022
6:00 P.M.

CALL TO ORDER
The meeting was called to order at 6:00 PM by Mayor Jose L. Rios.

PLEDGE OF ALLEGIANCE
The flag salute was recited by all present.

ROLL CALL
Attendee Name Title Status
Jose L. Rios Mayor/Chair Present
Scott Funk Mayor Pro Tem/Vice Chair Present
Liz Silva Council/Board Member Present
Lorraine Worthy Council/Board Member Present
Paul Miller Council/Board Member Excused

YOUTH COMMISSIONERS
Sherlyn Flores and Luke Naegle.

STAFF PRESENT
Interim City Manager Carmen Gil, City Attorney Michael F. Rodriquez, Community Development Director Taven Kinison Brown, Finance Director Mike Howard, Executive Assistant to the City Manager/Deputy City Clerk Mary Villegas, Administrative Assistant II Miranda Uribe, Public Works Director/City Engineer Patrick Dobbins, Fire Chief Jason Muscio, and Police Chief Keith Wise. * Successor Agency Item
 Financing Authority Item
Packet Pg. 5
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA) AGENDA
ITEM
4

PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/82786844553 or call 1-1669-900-6833 and use Meeting ID: 827 8684 4553. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.

Council Member Silva read the following message:

If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on Monday, November 7th to the City Clerk at [email protected]

BUSINESS FROM THE PUBLIC

2. Business from the Public not on the Agenda; any member of the Public may address the Council for a period not to exceed three minutes on any subject not on the Agenda. The Council will listen to all communications, but may take no action.

Henry Martinez Jr., 114 Tenth Street, commented everybody is going crazy during elections, false accusations, signs missing and that people are blaming him; that California Penal Code prohibiting people from making a false police complaint; no actions being done; being accused of different and accusations coming from the same group of women under Maria Orozco; told Mayor Rios and Council Member Worthy they had his full support; and said he was opposed to having the same regime coming back and wanted to do something about it.

Henry Martinez Sr. commented about needing more officers on the street; asking officers to wear their body cams; needing the Chief and Captain on the streets patrolling; officers picking and choosing who they ticket; parked vehicles not being ticketed; DUI issue, etc; stated he wanted to retire from his activism but wanted the Captain, Sergeants, Corporals and the Chief fired.

Dr. Matty Zamora, Gonzales Unified School District Superintendent, introduced herself and said she was excited to be in Gonzales. She also introduced Chief Business Officer Joannie Lumbra, Assistant Superintendent of Educational Services Yolanda Barba, and Director of Human Resources Roxanne Regules. She said it was exciting and wonderful to work for the students who give it their best, and they will make sure they’re always taking care of our students when they're under their guidance. And also ensure that the teachers have all the skills and knowledge to continue to give students a strong academic program.

Roman Barba, 123 Second Street, talked about the past Superintendent and past School Board President who were against a community center; wondered if the school would show support now; talked about being confronted while campaigning; asked about the loud music with bands and mariachis in Central Park every weekend; asked if they had a license to be out there; was excited about the trees getting taken down for the community center; he knew they didn't have all the money, and only have $25 million but suggested doing it in phases and build whatever is going to bring us money; and he also stated that people are complaining about sidewalks being lifted on Fanoe Road.

Packet Pg. 6
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA)

Bob Krauth, 703 Colombard Circle, commented about Gonzales having roughly 3,000 registered voters and unfortunately, well over 80% of them had not voted yet as of today and worried the rain will decrease the turnout; recommended lending family or friends a rain coat and getting them out there to vote; having candidates and several issues not only locally, but for the county, as well as the State and the federal level; and he stressed it was important that we get our turnout and show the rest of the country, what democracy really means.

CONSENT AGENDA

3. Approve the Joint City Council and Successor Agency - Regular Meeting - October 17, 2022 Minutes

4. Approve the Joint Gonzales City Council and Soledad City Council - Special Meeting - October 25, 2022 Minutes

5. Approve City Accounts Payable Warrants #47725-47853

6. Consider Approval of Resolution No. 2022-76, A Resolution of the City Council of the City of Gonzales Approving the Purchase of the Tyler Technologies Financial System Upgrade, and Authorizing the Interim City Manager to Execute an Agreement for the System Acquisition and Services in the Amount of $127,874

7. Adopt the Updated Version of the City of Gonzales Emergency Operations Plan, Including the Recently Added Section for Emergency Communications

8. Review and Accept the 2022 Annual Public Financing Authority Report

9. Update on the DR Horton Who is Considering Constructing a Residential Development Project on the D’Arrigo Bros Property
City Attorney Rodriquez pulled item 6 for discussion purposes. He mentioned there were two items on the agenda for the purchase of technological equipment, which were items 6 and 13, in both cases, there was no bidding involved, and the staff reports and resolutions failed to notice that we have exceptions that allow for the City to suspend the bidding process under certain circumstances which was the case here. He said there's an exception that allows you to make a selection of technological equipment on the basis of suitability of the equipment the City needs, both are contained in section 3.16.050 of the code and by reference today, staff is asking for the Council’s approval of item 6 incorporating the use of those two exceptions.

RESULT: APPROVED [UNANIMOUS] to include the bidding exceptions amendment to item 6
MOVER: Scott Funk, Mayor Pro Tem
SECONDER: Lorraine Worthy, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy EXCUSED: Paul Miller

REGULAR AGENDA

10. Continue the noticed Public Hearing Regarding Ordinance No. 2022-135, An Ordinance of the City Council of the City of Gonzales Repealing and Rescinding “Title 11 - Building Regulations,” of the Gonzales City Code (Ordinance 2019-114); and Adopting a New “Title 11 - Building Regulations,” of the Gonzales City Code by Adoption of Referenced California Codes and Amendments
Community Development Director Kinison Brown asked for continuance of this item to December 5 th so staff can correct the public notice and refine local enhancements to the code. He added that the building code goes into effect on January 1st.

*
Packet Pg. 7
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA)

Mayor Rios opened the public hearing at 6:20pm.

Public Hearing: No comments came forward.

Being there no comments from the public, Mayor Rios closed the public hearing at 6:20pm.

No action required.

11. Presentation on the City of Gonzales Measure P
Mayor Rios asked if this would have been an item we should have brought up back in September or October since like the gentleman earlier noted that some people have already voted.

City Attorney Rodriquez responded that it was fine to have this item on the agenda this evening since that’s what the Council asked for at the previous meeting, and a presentation was prepared, and tomorrow is election day. He said it was good to explain to folks before they go vote. He mentioned they also indicated some folks have voted, and there was also a reference that 80% of people in Gonzales have still not voted. He said it was the Council’s pleasure if they want to have staff do the presentation, if not, it’s part of the record and anybody who wants to look at the pros and cons with respect to Measure P, can do so.

Interim City Manager Gil added that the Council also approved a resolution on Measure P at the last meeting, and there was an ask to go deeper and explain what Measure P was for in case anybody else had further questions. She said it was the Council’s discretion, and the slides in the packet were available to the public, but she can answer any questions they had.

Council Member Worthy agreed with the Mayor and thought the biggest issue for people to understand was that their taxes are not going up, that this is just an extension of the Measure X to 2064, which we already did. She thought it was a big misconception that a lot of the people in our community have. She asked people to go out and vote.

Council Member Silva mentioned that out of courtesy to staff who spent the time to prepare the report, she would like to hear the report and also asked if we had to have the 50% plus one to pass the measure.

City Attorney Rodriquez responded Measure P must pass by a majority, which is 50% plus one.

Council Member Silva asked if it did not pass, how does that affect moving forward with our community center.

Interim City Manager Gil mentioned that the passage of Measure P would help us potentially generate additional funding that could allow us to go after the USDA loan. If it didn’t pass, we would have to look at other places for the financing of the project. She went over the presentation slides where she explained Measure K and Measure X which are now combined into one measure; extending the life which encompasses both measures; oversight committees would continue; what funds can be used for specific areas; funds for current programs; Measure P not being an additional tax, it was just to extend the life of those two.

Council Measure Silva asked if it passed, will it combine into one letter? Interim City Manager Gil explained that Measure K and Measure X will be under Measure P, but staff will still separate them when collecting the amounts.

Packet Pg. 8
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA)

Public Comment: Roman Barba, 123 Second Street, talked about the last measure that didn’t pass; wondered if the school would support this because they have a school board member who is trying to get reelected and is against the community center; suggested getting the school to support it and build something that’s going to generate funds like renting spaces.

Henry Martinez Jr. commented about not knowing anything about it and thinking it was more taxes again; not voting yet; suggested for the future to put it out there other than website because a lot of people don’t look at it because it’s horrible; and to figure out ways to get it out there like in the mailers.

Henry Martinez Sr. agreed with his son and said he didn’t know about the measure either and was still trying to figure out their taxes from the other bonds they put on their properties; hoped they can get this because the community center was promised long time ago.

Council Discussion: Mayor Rios concurred with the comments regarding the lack of information and thought as a City, we need to do that a little bit better. He hoped to talk to the Youth Council to see if they can help since they’re tech savvy. He also talked about what’s starting at the site with the trees being removed, and there will be at least the Library and the Innovation Center which started this kind of thought process. He thought that would be a good place for both our seniors and all the kids in the school to be able to have a place that they call their own. And maybe come up with some brighter ideas down the road to figure out how to finance this thing better than we did. He was optimistic by the youth of our community since they are our future. He hoped they will look at some things as we move down the road, and we get as much as we can built, and the Public Works Director got the ball moving by removing the trees.

12. Presentation on the Funding and Schedule for the Industrial Wastewater System Project Staff Report: Public Works Director/City Engineer Dobbins presented the staff report.

Public Comment: There was none.

Council Discussion: Council Member Silva asked where wastewater went after it has been treated.

Public Works Director Dobbins responded it goes into the ground whether there's treatment ponds, clarifying ponds and then percolates into the ground and goes back into the aquifer.

Mayor Rios was under the impression there was an economic development package, which meant that if you created jobs, there was opportunity to apply for those types of funding. He asked if we had a loan program because we are creating jobs at the industrial park.

Public Works Director Dobbins said that was the Economic Development Agency, which was a source of money to start the first phase, or the infrastructure for the business park about 16 years ago. He added there have been other conversations with EDA staff about extending the roads and that was looked at for this but ended up with the State Revolving Fund, which is a low interest loan.

Mayor Rios asked if there was a possibility to look at it again as an option.

Interim City Manager Gil responded staff can definitely look at it and see what criteria fit or if it is even an option.

Mayor Rios said yes because as he understands we still have Concentric possibly moving into the Packet Pg. 9
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA)

industrial park and Braga has indicated the same once we have a capacity to expand their facilities, as well as Mann Packing.

Public Works Director Dobbins indicated staff will follow up on that. He said there's a mention in the staff report that we're going to seek the SRF loan, and assuming once we execute the agreement and go down that path, that we're going to seek loan forgiveness because that is available for disadvantaged communities.

No action required.

13. Consider Approval of Resolution No. 2022-77, A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Quote from Alvarez Technology Group to Replace the Computer Servers for City Hall and Police Station in the Not-to-Exceed $135,000 Staff Report: Public Works Director/City Engineer Dobbins presented the staff report.

City Attorney Rodriquez referenced the fact that as part of the adoption of the resolution before the Council that they will also consider an amendment to the resolution to add a reference to a bidding exception, which is exception 4, Section 3.16.050 of the Gonzales City Code. He explained that is the exception that allows us to purchase equipment without bidding when the equipment that the City is picking is based on the suitability of the equipment for the City's needs, and not just the basis for the price. He added that is why we rely on Alvarez for their expertise to make the recommendations of the equipment needed.

Public Comment: Henry Martinez Sr. commented about needing more patrol officers on the street; stated there was no need for Chief to attend a conference in Texas; that money can be used for the technology.

Henry Martinez Jr. asked if they were going through the same company as always.

Mayor Rios responded there is an exception here because of who we've used for a long time, and there are options that were made available, and they were willing to do it during Christmas. He said it makes sense because they know our equipment and what needs to happen.

Mr. Martinez Jr. continued commenting he knows servers and you pay what you get and encouraged paying a little bit more to get better quality.

Council Discussion: Council Member Silva noticed some of the assessment districts funds are being used to the tune of about $24,000, and realized the general fund is taking the bigger chunk of it, but asked if there are no funds at the Police Department for those purposes.

Finance Director Howard responded when we take from the general fund, it actually encompasses every department in the general fund, which includes Public Works, Fire, Police, etc.

Council Member Silva asked why the assessment districts are being utilized.

Finance Director Howard responded because just like the enterprise funds are utilized, the financial software will help to regulate and to keep the separate accounting functions for each of those entities. This is an allowable expense for having to track the bonds, the property or the assessments, recording and making the payments, as well as doing all the financial accounting and auditing for each individual assessment district.

Packet Pg. 10
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA)

Council Member Silva suggested maybe we can set aside $20,000 a year for every year going forward in the next six or seven years, so by the time we're ready to have to replace it, we would hav the funds to do it.

Finance Director Howard said that was an ideal situation and maybe we can start looking at the budgets.

RESULT: APPROVED [UNANIMOUS] Resolution No. 2022-77 including the bidding exceptions amendment
MOVER: Lorraine Worthy, Council Member
SECONDER: Liz Silva, Council Member
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy EXCUSED: Paul Miller

14. Consider Approval of Resolution No. 2022-78, A Resolution of the City Council of the City of Gonzales Accepting $500,000 in Grant Funding from the California Public Utilities Commission’s “Local Agency Technical Assistance Program,” and Execute A Memorandum of Understanding with Golden State Connect Joint Powers Authority to Support the City’s Involvement in the South Salinas Valley Broadband Authority Staff Report: Public Works Director/City Engineer Dobbins presented the staff report.

Public Comment: There was none.

Council Discussion: Council Member Silva noted a correction on the paragraph under background, which was listed as District 5 and it should be District 3.

Public Works Director Dobbins noted that change.

Mayor Rios said he was part of that JPA and was very excited thinking that this community and all the four South County communities along with a portion of District 3, will have a better internet system.

RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Council Member
SECONDER: Scott Funk, Mayor Pro Tem
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy EXCUSED: Paul Miller

BUSINESS FROM CITY COUNCIL

15. City Council Board/Committee Reports
a. Transportation Agency for Monterey County
Mayor Rios reported on the hiring of Tony Harris, who was the Deputy Director for Caltrans and he will be overseeing all the projects for Monterey County. b. Mayor Selection Committee
Mayor Rios reported the last meeting was cancelled due to the speaker not being able to make it.
c. Salinas Valley Recycles
Council Member Silva announced the next meeting on November 17th at 6pm in the Council Chambers.
d. Salinas Valley Basin Groundwater Sustainability
No report.

Packet Pg. 11
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA)

16. Oral Communications
Youth Commissioners Flores and Naegle reported on the GYC meeting last Thursday where they touched bases on the projects they will be working on, such as the pedestrian safety, mental health, and the school beautification projects; and announced the November 19th clean up event on Belden Street by the trailer homes.

Council Member Worthy announced a fundraiser for the American Legion Auxiliary, Saturday at 1pm for charcuterie class. She also said the Palo Alto Veterans are looking for blankets for the men and women that are injured, and anyone interested in crocheting, quilting or knitting blankets, they will deliver them in December. She also announced a flag retirement event on November 26th at 6pm where they burn the flags that are no longer able to be used. She will give the information to the City so they can put it on the website. She also reminded folks to please think about all our veterans who have served in our military since Veterans Day is approaching, and for those that haven’t voted, please vote tomorrow.

Council Member Silva also reminded people that this Saturday, November 12th is our City cleanup at the Fairview School. She also thanked everybody who supported the fundraiser from the American Legion for the scholarship fund. This is a second year she has done it with the help of Luigi’s who is a great supporter of this fundraiser. She added this has been something that the Gonzales Unit has done for over 75 years. She hopes to get the information out to the school soon.

Mayor Pro Tem Funk thanked the volunteers who helped with the Dia de los Muertos event last week, which was great as part of one of the Community Action Grants, and was nice to see people out there considering how cold it was. He also appreciated the efforts of staff ahead of time with the rain that’s coming and will be dealing with flash floods.

Mayor Rios brought up a tripping hazard concern on Herold Parkway which is a sidewalk that is lifted due to tree pines that are also lifting asphalt. He hoped as these new developments come to town, that we could look at the type of trees planted. He said he was not sure how we get the homeowner to make the necessary repairs, because and that's another part that he feels that how as a City, we can justify putting the requirement that when a street tree is placed in front of a homeowners property that we have chosen, that the homeowner is responsible; and to him there is a major disconnect. He asked Patrick and Taven that when these next subdivisions come, we look at what foliage we're going to put in those locations so people can have safe places to walk.

BUSINESS FROM CITY MANAGER

17. Oral Communications
Interim City Manager Gil thanked staff for helping and holding it down while she was on maternity leave.

She also thanked Patrick for stepping in as well and making sure everything ran smoothly. She announced a Save the Date for the Holiday Lights event on December 3rd in the downtown area, and they’ll be seeing more information about that later.

Fire Chief Muscio reported on the children getting sick with the RSV virus, and flu and Covid still out there; flash flood warning in effect for the burned areas on River Road, not in the City; and drive in movie being a success.

Packet Pg. 12
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA)

CLOSED SESSION
Any member of the public may address the Council on a closed session item appearing on the agenda.

Speakers shall have a limited time of three (3) minutes. Please be brief and to the point.

No comments came forward.

18. The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957(b)(1)- City Manager -Employment/Recruitment.

Council conferred with the City Attorney and provided direction. No other reportable action taken.

19. The City Council will recess to closed session to confer with its attorney regarding litigation pursuant to Government Code Section 54956.9(d)(2) and is hereby of the opinion that a significant exposure to litigation exists.

Council conferred with City Attorney. No other reportable action taken.

ADJOURNMENT
RESULT: APPROVED [UNANIMOUS]
MOVER: Liz Silva, Council Member
SECONDER: Scott Funk, Mayor Pro Tem
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy EXCUSED: Paul Miller
The meeting was adjourned at 7:55 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
* For a complete video of this Council meeting, please visit https://gonzalesca.gov/government/citycouncil-agendas-minutes Packet Pg. 13
Minutes Acceptance: Minutes of Nov 7, 2022 6:00 PM (CONSENT AGENDA)

MINUTES

GONZALES CITY COUNCIL

SPECIAL MEETING
TUESDAY, NOVEMBER 15, 2022
5:00 P.M.

CALL TO ORDER
The meeting was called to order at 5:00 PM by Mayor Jose L. Rios.

PLEDGE OF ALLEGIANCE
The flag salute was recited by all present.

ROLL CALL
Attendee Name Title Status
Jose L. Rios Mayor Present
Scott Funk Mayor Pro Tem Present
Liz Silva Council Member Present
Lorraine Worthy Council Member Present
Paul Miller Council Member Present

STAFF PRESENT
City Attorney Michael F. Rodriquez, and Executive Assistant to the City Manager/Deputy City Clerk Mary Villegas.

PUBLIC NOTICE
This meeting is being conducted consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The public may participate in person or online via zoom at https://us06web.zoom.us/j/87464700457 or call 1-1669-900-6833 and use Meeting ID: 874 6470 0457. If you wish to make either a general public comment or to comment on a specific agenda item, please use the Raise Hand function. You will be allowed three minutes for your comments.

If you choose not to attend the City Council meeting but wish to make a comment on a specific agenda item, please submit your comment limited to 250 words or less by 12:00p.m. on Tuesday, November 15th to the City Clerk at [email protected]
Packet Pg. 14
Minutes Acceptance: Minutes of Nov 15, 2022 5:00 PM (CONSENT AGENDA) AGENDA
ITEM
5

CLOSED SESSION
Any member of the public may address the Council on a closed session item appearing on the agenda.

Speakers shall have a limited time of three (3) minutes. Please be brief and to the point.

There was none.

2. The City Council will recess to closed session to consider personnel matters pursuant to Government Code Section 54957(b)(1)- City Manager -Employment/Recruitment. Confer with and provide direction to City Attorney and Consulting Recruiter- Adele Frese.

Direction provided to City Attorney and Recruiter. No other reportable action taken.

ADJOURNMENT
RESULT: APPROVED [UNANIMOUS]
MOVER: Paul Miller, Council Member
SECONDER: Scott Funk, Mayor Pro Tem
AYES: Jose L. Rios, Scott Funk, Liz Silva, Lorraine Worthy, Paul Miller The meeting was adjourned at 6:45 PM.

ATTEST:

Mary Villegas, Deputy City Clerk
Packet Pg. 15
Minutes Acceptance: Minutes of Nov 15, 2022 5:00 PM (CONSENT AGENDA) City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 1:33 pm
Date: 11/04/2022
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
47854 11/04/22 Printed 4304 EMPLOYNET, INC. Temp Help 5,902.76 Total Checks: 1 Checks Total (excluding void checks): 5,902.76 Total Payments: 1 Bank Total (excluding void checks): 5,902.76 Total Payments: 1 Grand Total (excluding void checks): 5,902.76 AGENDA
ITEM
Packet Pg. 16
Attachment: Warrants #47854-47909 (2583 : Approve Accounts Payable Warrants #47854-47909) 6 City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 1
Time: 1:50 pm
Date: 11/10/2022
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
47855 11/10/22 Printed 1922 A & G PUMPING, INC. Porta Potties- Centennial Park 526.00 ABAG PUBLICLY OWNED 4,727.65
ENERGY
47856 11/10/22 Printed 256 Levelized Nat. Gas Charges
47857 11/10/22 Printed 4309 ALLTECH SERVICES, INC. City Hall & PD Generators 149,363.75 ALVAREZ TECHNOLOGY 69,977.04
GROUP, INC.
47858 11/10/22 Printed 3893 Computer Server Upgrade
47859 11/10/22 Printed 4297 AMERICAN RAMP COMPANY Skate Park Ramp Payment 6,520.53 ARMANASCO PUBLIC 14,000.00

RELATIONS,
47860 11/10/22 Printed 3284 PR Support Services
47861 11/10/22 Printed 341 PATRICK ASKEW Retiree Medical Insurance Nov. 361.00 47862 11/10/22 Printed 2830 AT&T Internet Acct # 157272955 265.37 47863 11/10/22 Printed 4117 AT&T Monthly Charges - October 858.56 47864 11/10/22 Printed 3168 AUTOZONE INC. Wiper Blades 37.39 BANUELOS ENTERPRISES, 163.62
INC.
47865 11/10/22 Printed 1054 Fuel
47866 11/10/22 Printed 770 CARLOS ALBERTO ESQUIVEL Janitorial Services & Supplies 1,600.00 47867 11/10/22 Printed 212 CITY OF GONZALES Water Deposits to be Applied 329.08 47868 11/10/22 Printed 1821 CSK AUTO, INC. Oil Filters 270.93 CYPRESS COAST FORD 557.26

LINCOLN
47869 11/10/22 Printed 4063 Vehicle Maint. Supplies
DE LAGE LANDEN PUBLIC 23,748.83

FINANCE
47870 11/10/22 Printed 2895 Public Finance
47871 11/10/22 Printed 1410 DEPARTMENT OF JUSTICE Livescans - August 2022 819.00 GOLDSTAR BUICK PONTIAC 107.98
GMC
47872 11/10/22 Printed 1084 Vehicle Maint. Supplies
GONZALES ACE HARDWARE 297.24
INC.
47873 11/10/22 Printed 3274 Cord Sash Cotton 1/4x100
47874 11/10/22 Printed 225 GONZALES IRRIGATION 1/2 90 Elbow T x T 38.26 47875 11/10/22 Printed 118 GONZALES RX PHARMACY Alcohol Swabs 9.11 47876 11/10/22 Printed 1109 GONZALES UNIFIED SCHOOL Joint Use Gym Maint. - Aug. 1,015.54 GREEN VALLEY FARM 497.03
SUPPLY
47877 11/10/22 Printed 1319 PPE & Organic Vapor
47878 11/10/22 Printed 1744 GREEN'S ACCOUNTING Accounting Services - Sept. 16,445.48 47879 11/10/22 Printed 1744 GREEN'S ACCOUNTING Accounting Services - Oct. 12,122.71 47880 11/10/22 Printed 4292 GVP VENTURES, INC. CM Recruiting 9,871.25 HILL BROTHERS CHEMICAL 4,365.87
CO
47881 11/10/22 Printed 4120 Chlorine
INTERSTATE ALL BATTERY 108.77
CENTER
47882 11/10/22 Printed 134 Maint./Repair Equipment
47883 11/10/22 Printed 204 LN CURTIS & SONS Uniforms 325.36 47884 11/10/22 Printed 4306 MARIA ELENA MENDEZ Water Deposits Refund 80.56 47885 11/10/22 Printed 72 MISSION UNIFORM SERVICE Mats 335.85 MONTEREY COUNTY 45,167.25

ELECTIONS DEPT
47886 11/10/22 Printed 352 Special Election - Measure D 47887 11/10/22 Printed 3787 NEW SV MEDIA Public Notice 302.50 47888 11/10/22 Printed 91 P. G. & E. Utilities Acct # 1024308210-3 122,082.80 47889 11/10/22 Printed 1021 PURCHASE POWER Postage Meter Refill 100.00 47890 11/10/22 Printed 115 QUILL CORP City Hall Office Supplies 553.79 47891 11/10/22 Printed 4092 RAZZO LINK, INC. Internet Service - Pool 75.09 47892 11/10/22 Printed 4307 VIVIANA E. RODRIGUEZ Water Deposits Refund 89.20 SAFETY-KLEEN SYSTEMS, 240.86
INC.
47893 11/10/22 Printed 189 Solvent
SALINAS VALLEY SOLID 125,973.77
WASTE
47894 11/10/22 Printed 258 Tonage Fees - Aug.
47895 11/10/22 Printed 2685 SC FUELS Fuel 490.27
47896 11/10/22 Printed 2673 SPECTRUM Internet Services 3,081.70 47897 11/10/22 Printed 1857 SUMMIT UNIFORM CORP. Uniforms 1,842.97 47898 11/10/22 Printed SWINERTON SWINERTON BUILDERS Community Center PM Services 14,070.00 47899 11/10/22 Printed 3445 TELSTAR INSTRUMENTS Fix Flow Meter & Calibrate 1,362.00 47900 11/10/22 Printed 3880 THE MAYNARD GROUP Video Conferencing 260.30 47901 11/10/22 Printed 4303 JOSE G. TORRES 4th St. Lights 1,370.00 Packet Pg. 17
Attachment: Warrants #47854-47909 (2583 : Approve Accounts Payable Warrants #47854-47909) City Of Gonzales
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
RABOBANK Page: 2
Time: 1:50 pm
Date: 11/10/2022
Void/Stop
Date
Reconcile
Date
RABOBANK Checks
TRANS UNION RISK AND 110.40

ALTERNATI
47902 11/10/22 Printed 3175 TLO
47903 11/10/22 Printed 27 TRI - CITIES DISPOSAL Drop Box Services - October 174,788.89 47904 11/10/22 Printed 3718 TRINI'S PLUMBING Buildings - Tape & Chisel 327.42 47905 11/10/22 Printed 3577 U.S. BANK 10/6/22 Carmen Gill Acct # 4866 9145 5,327.30 5550 8537
47906 11/10/22 Printed 3577 U.S. BANK 10/6/22 Keith Wise Acct # 4866 9145 641.64 5550 8537
47907 11/10/22 Printed 99 VOSTI'S, INC. Equipment Repair/Maint. 123.95 47908 11/10/22 Printed 4305 VSS INTERNATIONAL INC. Slurry Seal Contract 360,280.85 47909 11/10/22 Printed 4308 WONG WONG INC. Water Deposits Refund 51.16 Total Checks: 55 Checks Total (excluding void checks): 1,178,461.13 Total Payments: 55 Bank Total (excluding void checks): 1,178,461.13 Total Payments: 55 Grand Total (excluding void checks): 1,178,461.13 Packet Pg. 18
Attachment: Warrants #47854-47909 (2583 : Approve Accounts Payable Warrants #47854-47909) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 21, 2022
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Community Development Activity Report

BUILDING DIVISION ACTIVITY
From October 1, through October 31, 2022, (reporting 31 days) the city issued 13 permits from the Building Division for an ADU, reroofing, electrical associated with solar roof projects, fire sprinklers, and a new sign permit for Alta Market (reported previously). The estimated valuation of all improvements was $247,983.50.

BUSINESS LICENSES
The City presently has issued licenses for 253 business conducting business activities in the City of Gonzales. These licenses represent our long standing agricultural businesses, downtown business, commercial district businesses, home occupation businesses, as well as consultants and other contractors who conduct business within the City.

CODE ENFORCEMENT
The City presently has several active Code Enforcement cases and others calls that we field responses to that do not rise to official “cases.” These cases involve rubbish in yards that need to be removed, vehicles parked on residential lawns, RVs not regularly moved, or RVs being connected to house utilities while in driveways and streets.

1. 324 Tenth Street. Plans have been approved for a reroof and remodel of kitchen and bathroom spaces. It is good to see this property re-invested in.

AGENDA
ITEM
7 Packet Pg. 19

POTENTIAL COMMERCIAL PROJECTS
Mann Packing has expressed a desire to double the size of their Gonzales facility. Their architect is advancing designs and site plans and on September 28, 2022, staff met face-to-face to discuss the matter.

Pending potential language adjustments in the City’s standard Reimbursement Agreement, Mann Packing may be ready to execute a Reimbursement Agreement soon. Such would allow the City to craft an RFP to begin an environmental review process while the project description gets further refined. Such a project will be dependent on the City’s infrastructure capacity to serve existing and future developments.

Staff has fielded a few calls regarding the HC Highway Commercial property on the corner of Fifth and Fanoe Road. There appears to be an interest to develop a moderate-sized hotel with provisions (potentially half of the units) to allow worker housing during the high activity agricultural seasons. Such a facility could serve tourists and visitors, as well as worker housing.

ECONOMIC DEVELOPMENT
Helping restart the City of Gonzales Chamber of Commerce. The city is at the table and ready to assist with outreach or other efforts for our local business community.

Potential Freestanding Electronic-Display Freeway-Oriented Billboard. The City Council will be receiving a presentation, 11/21/2022 on the potential opportunity.

HOUSING
Sphere of Influence Area
City staff continues to work with Pembrook Development Group (Vista Lucia Specific Plan: VLSP) and Jackson Family Investments (Puente Del Monte Specific Plan: PDMSP) and the Rianda Family Trust on developments in the City’s Sphere of Influence.

1. Vista Lucia Specific Plan
a. Pembrook recently submitted a Water Supply Assessment (WSA) for City review and comment. Staff will bring a status report to the City Council in December. b. Willdan Financial Study. With the City’s assistance, the City’s consultant will be determining future staffing service needs for Fire, Police, Public Works, Parks, Building and Planning, and Administrative Services needs for the annexation areas and as the City has in-fill. Such study will inform the City’s coming negotiations with the County for revenue neutrality, and assessment districts or other financial structures that may be employed in the areas to be incorporated.
c. The VLSP representatives are still in draft stage for an eventual Development Agreement to be brokered with the City. Such an Agreement needs to be negotiated with City leadership and is inseparable from the Specific Plan Preparation and Environmental Review Documents under preparation.
d. The City’s coming Agricultural Mitigation Ordinance and recently adopted Vehicle Miles Travelled policy will have a bearing on this project.

2. PDMSP. The Rianda Cooler project proposal will reshape the PDMSP once more is known and certain about how the Rianda Cooler moves through city development review and LAFCo processes.

3. Rianda Family Trust (Rianda Cooler). Staff and the consultant are proceeding to move this project forward with work on the CEQA document and an evaluation of adjustments that may be needed in the General Plan to enable such a facility in its proposed location.

Community Development staff has started an initial draft staff report for tracking the project through Planning Commission, City Council and LAFCo.

Packet Pg. 20
Housing Within the City
DR. Horton continues in their due diligence and exploration of development of the 138 acre D’Arrigo property.

Housing Element Preparation.

Staff took the initiative to re-cast a second RFP solicitation for a wider exposure to consulting firms who may bid on such a project at a hoped-for lower price. The City received 3 bids and will be presenting a recommendation to the City Council as a separate report Housing Element Funding.

Staff was directed to uncover all potential financial resources at the local, state or federal level. Staff will be presenting a recommendation to the City Council as a separate report, December 5, 2022.

PLANNING COMMISSION ACTIVITY
At their September 12, 2022, public meeting, the Planning Commission recommended that the City Council consider engaging an update to the City’s parking ordinances city-wide.

On October 10, 2022, The Planning Commission conducted a workshop on the practice of abiding be parliamentary procedures / Roberts Rules of Order.

On November 14, 2022, staff presented the Community Development Department Master Task list, to inform the Commission of present activities and duties of the department, projects under review, next steps and items expected to come under the Commission’s review.

OTHER COMMUNITY DEVELOPMENT DEPARTMENT ACTIVITIES
Agricultural Mitigation Ordinance. (A requirement of the 2014 MOA with County) On August 29, 2022, the Gonzales Agricultural Committee met to discuss the City’s previous efforts to craft an Ag Mitigation Program. Staff and the Committee addressed the timing of agricultural mitigation, the ratio of mitigation, and how easements are appraised and secured, and potential exemption to not deter the construction of affordable Housing units. The Agricultural Land Trust has expressed a willingness to work with the City to develop an ordinance that meets the test of environmental law as well as practicality. The Salinas Valley incorporated cities are gathering on November 21, 2022, in Salinas to discuss the County of Monterey’s developing Agricultural Mitigation Ordinance. On topic will be how the County’s developing ordinance may or may not affect previously negotiated MOAs with the respective cities.

Anticipated Ordinances and Policies that are needed and are being worked into the department’s work program:
a. Agricultural Mitigation Ordinance
b. Housing Element Update
c. Safety Element Update
d. Environmental Justice Element (a new state requirement) e. Electric Vehicle Charging Ordinance / Policy
f. Adoption of the new Building Code to take effect January 2023 g. Administrative Citation /Code Enforcement Ordinance strengthening, h. Water Efficiency Landscaping Ordinance (update to the 2015 effort) i. Parking Regulations (potentially, if directed)
j. Sign Ordinance revisions (potentially, if directed)
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City of Gonzales

COMMUNITY ENGAGEMENT & STRATEGIC

PARTNERSHIPS

ACTIVITY REPORT
TO:

DATE:

FROM:

Honorable Mayor Rios and City Council
November 21, 2022
Carmen Gil, Interim City Manager
SUBJECT: Community Engament & Strategic Partnerships Activity Report Gonzales Youth Council

1. The Gonzales Youth Council has been meeting on a bi-weekly basis. They are continuing to work on their mental health project and are meeting with Dr. Jennifer Lovell to conduct an analysis of the data they gathered during the second round of surveys.

2. They are also planning to conduct a community clean up on Nov. 19th from 9:00 – 1:00 starting 449 Belden and are considering taking on a school beautification project as well.

Current Activities

1. In the month of October, the Community Health Workers (CHWs) conducted 16 COVID-19 tests and 2 completed Medi-Cal applications.

2. They assisted in five food distributions. Four with Salvation Army (average of 70 individuals) and one with the Monterey Food Bank (average of about 200 cars). These distributions are important because they help boost the numbers for Medi-cal and they are able to connect them with additional resources.

3. On October 18th, the Community Health Workers supported two community events. One of the events was a safety event in which CHOMP doctors shared how to use Narcan, the Fire Chief shared fire safety tips with the community and the Gonzales PD and Sun Streets Centers discussed gateway drugs and offered tips on prevention. Over 50 people attended the event and there was a really good response and interest from the community in support of more events to AGENDA
ITEM
8 Packet Pg. 22
help educate the community and provide resources. The other event was a Flu Clinic held by SVMH where the CHWs and the Fire Department distributed approximately 50 Narcan sprays to the public.

4. The CHWs were also able to participate in multiple training courses in the month of October, including a training with the Monterey County Elections office and another pertaining to Domestic Violence.

5. Additionally, CHWs worked with the Fire Department to host a Narcan distribution during Halloween where they educated the public on how to use Narcan and provided additional resources at the fire house.

Activities in Planning Phase

1. The City of Gonzales Community Health Workers will be assisting with applications for a Toy Drive. Applications are scheduled to start being collected on November 19th and 20th outside of the Fire Department and Police Department. It is planned that at least 150 gifts will be distributed due to the generosity of local community members. The actual gifts will be distributed tentatively on December 17th and 18th by participating City Departments.

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City of Gonzales

FIRE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 21, 2022
FROM: Jason Muscio, Fire Chief
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Fire Department Activity Report

RESPONSES
There were 64 total calls for service during the month of October, the breakdown be call type is below:

EMS - 35
Vehicle accident - 5
Hazardous material or conditions - 6
Service calls - 5
False alarm or canceled enroute - 13
The Fire Department provided mutual aid to outside agencies twice during the month.

STAFFING
Staffing remains at 7 career personnel and 3 active Volunteer Firefighters. There are currently no applications for Volunteer Firefighter in process.

TRAINING
Training was conducted at the shift level and focused on EMS skills, and drivers training, as well as completion of the annual Hazardous Materials First Responder Operations refresher course.

EQUIPMENT
All apparatus are in service without need for significant repairs. A problem with the charging system on Patrol 8151 was repaired by the city mechanic.

AGENDA
ITEM
9 Packet Pg. 24

PREVENTION
Annual fire inspections for both businesses and residential rentals continue to be conducted. There were two visits to the Fire Station by local school children during the month.

GRANTS
Grant opportunities continue to be researched and pursued as they become available.

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City of Gonzales

POLICE DEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 21, 2022
FROM: Keith Wise, Chief of Police
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: October 2022 Activity Report
Crime and Arrests
The Gonzales Police Department investigated 11 Part I Crimes (Homicide, Robbery, Theft, Burglary, Rape, Assault and Motor Vehicle Theft) during the month of October 2022. During the same time last year, there were 15 Part I Crimes investigated.

During the month of October 2022, Officers made 17 arrests. During the same time last year, there were a total of 10 arrests.

Calls for Service
The Department responded to 693 calls for service in October 2022. There were 92 crime, accident, and information reports taken during the month.

Animal Control
During the month of October 2022, the Animal Control Officer (ACO) provided the following services:

Animal
Control
Trapped/Stray Dead Injured Bite Cases Returned to
Owner
Transported
to the SPCA
Cats 0 4 1 0 0 0
Dogs 12 0 0 0 6 6
Total = 12 4 1 0 6 6
AGENDA
ITEM
10 Packet Pg. 26
Significant Cases
Although the Police Department responded to 693 calls for service during the month of October 2022, the most significant cases involved 11 Part I crimes. 0 - Rape, 1 -Robbery, 5 -Assault, 2 -Burglary, 1 -Larcenies, and 2 -Stolen Motor Vehicle Thefts.

Training
The Department continues to conduct in-house training.

Captain Juan Mendoza attended the final session out of three for the POST Management Course.

Records Supervisor Andrea Casillas and Administrative Assistant Esther Valdez attended a 1-day DOJ (CSAR) California Sex and Arson Registry training session on October 19, 2022, at the Alameda County Sheriff’s Office.

I attended the annual International Association of Chiefs of Police Conference on October 14 - 18, 2022.

Officers completed their biannual Range Training on October 18 - 19, 2022.

Officer Perez attended the Safe Kids Certification training on October 17 - 21, 2022.

Officers participated in a simulated Active Shooter training October 21, 2022 and October 25, 2022.

Other
On October 1, 2022, Captain Mendoza, Sergeant Bowen, Corporal Castillo, Officer Pruneda, Officer Rivas, and Officer Rivera hosted a Coffee with a Cop event at the local Gonzales Starbucks for National Coffee Day.

Officers along with Captain Mendoza, were a part of the celebration for the 75th Anniversary of the City of Gonzales event on October 16, 2022. The Officers along with Captain Mendoza provided extra patrol during the event.

On October 18, 2022, Officer Fierros provided a Gateway Drug Presentation to community members at the Gonzales Drug and Safety Training.

Officers led and provided extra patrol for the annual Gonzales High School Homecoming Parade held October 14, 2022.

On October 27, 2022, Officer Serrano, Officer Rivera, and Captain Mendoza provided a Halloween Safety Presentation to the children attending the Kid Power program.

On October 29, 2022, the Department hosted the bi-annual National Drug Takeback Day. Over 89 pounds of unwanted prescribed drugs were collected.

Packet Pg. 27
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City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO:

DATE:

FROM:

Honorable Mayor Rios and City Council
November 21, 2022
Patrick Dobbins, Public Works Director
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Public Works Activity Report

BUILDINGS

1. Community Center Complex Project – A Tree Removal Contract was approved at the 10/03/2022 Council meeting and the field work began on November 1 and is expected to be completed by November 23 (two weeks early). Staff provided a progress report at the 9/19/2022 Council meeting.

2. Emergency Generator Replacements – The city received a $150,000 grant from Cal OES in 2021 to replace the emergency generators at City Hall and the Police Station. At the 2/07/2022 City Council meeting, a $175,000 contract with Alltech Services was approved. The generator at the Calif Breeze Sewer Lift Station will also be replaced under this contract and will be funded with Sewer Impact monies. All three generators have been installed, inspected, and tested. The contractor has a few punch list items to finish before the city accepts the work as complete.

WASTEWATER
Industrial Wastewater (IW) System/Reclamation Plant – Dudek completed the final design for the IW Conveyance and Treatment Facility construction documents. Staff and the city surveyor are finalizing the temporary and permanent easements needed for the project. City staff continues to coordinate with the State Water Resources Control Board regarding the city’s State Revolving Fund loan application (last virtual meeting was 11/17/2022). Staff provided a progress report at the 11/07/2022 Council Meeting.

WATER

1. Well 7 – In mid-July, staff began manually operating the well under our permit from the State Drinking Water Division while completing the electronic and remote controls. The contractor’s AGENDA
ITEM
11 Packet Pg. 29
controls subcontractor recently completed their part of the contract and the staff will present a report at the 12/05/2022 Council Meeting with a recommendation to accept the contract as complete.

2. Alpine Court Water/Sewer Service – Grant agreements with the State Water Resource Control Board (SWRCB) to fund the preliminary and final design of extending water and sewer service from Gonzales River Road to Alpine Camp were approved at the 7/06/20 City Council meeting. Staff is holding bi-weekly progress meetings with SWRCB staff. Staff prepared a draft agreement with the property owner and the City Attorney is coordinating with staff to finalize it.

3. Salinas Valley Basin Groundwater Sustainability Agency – Staff is an alternate on the SVBGSA Technical Advisory Committee (Soledad staff is the representative for South Valley cities).

PARKS

1. Skate Park Improvements – Phase two improvements to the skate park will be funded by the 2018 Parks Bond Act. On 3/03/2022 staff received the executed grant agreement with the State Department of Parks and Recreation. American Ramp Company provided a revised scope and cost for the improvements due to an increase in costs over the last year. The contract with American Ramp Company was approved at the 9/19/2022 Council meeting. The contractor is currently procuring the materials with installation expected in four to six months.

2. Meyer Park – Staff has coordinated numerous maintenance items over last several months including fixing light fixtures, replacing uplifted sidewalk, pruning trees, and replacing the rubber mulch under the swings with wood fiber. We are working with MST on installing a bus shelter that the city and MST will split the cost for.

SOLID WASTE

1. Patrick Dobbins and Maury Treleven performed a “windshield survey” of solid waste containers and dumpsters at multi-family residential complexes, commercial businesses, and industrial facilities on 8/08/2022. We were primarily looking for overfilled containers and dumpsters, illegal dumping, and adequate food waste collection.

2. California Department of Resources Recycling and Recovery (“Cal Recycle”) Coordination – Our annual meeting with staff from Cal Recycle, Salinas Valley Solid Waste Agency, Tri-Cities Disposal & Recycling, and the cities of Greenfield, Soledad and Gonzales was held on 8/02/2022.

3. Quarterly Tri-Cities Franchise Agreements Meetings – Staff from the Salinas Valley Solid Waste Authority, Tri-Cities Disposal & Recycling and the cities of Gonzales, Soledad, and Greenfield meet on a quarterly basis to discuss the various waste collection programs (commercial accounts, food waste, organic waste), compliance with latest state regulations, public outreach and education, customer surveys, etc). Most recent meeting was 8/10/2022.

DEVELOPMENT PROJECTS

1. Vista Lucia Development (City’s Sphere of Influence - East of US 101) a. City staff reviewed the Admin Draft #1 and Admin Draft #2 of the SEIR and provided comments to the Community Development Director.
b. City staff is holding bi-weekly Zoom meetings with Pembrook Development and their consultants.

Packet Pg. 30
c. Psomas developed a capital program of improvements to convey sewage from the SOI to the City WWTP for treatment and provided the draft technical memo in Mid-November for staff’s review.

Final Technical Memorandum was submitted in April 2022. d. Staff and our on-call traffic engineer have coordinated with Caltrans District 5 staff on the process for preparation of a Project Study Report/Project Development Support (PSR-PDS).

Staff will issue a Request for Proposals to engage a consultant to prepare the PSR-PDS documents.
e. On 3/28/2022 Staff met with Monterey County PW staff and discussed the applicant’s preliminary offsite roadway design. Staff met with Monterey County staff on 10/7/2022 and discussed executing a Maintenance Agreement for the city to be responsible for maintenance of Associated Lane when it’s widened as part of the Vista Lucia Development (maintenance will be funded by an assessment district formed as part of the development).

2. Puente Del Monte Development (City’s Sphere of Influence - East of US 101) – The applicant submitted a revised Specific Plan on 4/05/2022 for city’s review. This specific plan will be revised to reflect the Rianda Property is pursuing a different development proposal.

3. Rianda Cooler Development Project (Gloria Road) – The CEQA documents are underway. Staff is coordinating with the applicant’s site civil engineer and water/wastewater consultant on the initial design and layout.

4. In June 2022, DR Horton executed an agreement with D'Arrigo Bros to look at the feasibility of developing the 130 acre parcel in the city. A kick-off meeting with DR Horton and city staff was held on 7/07/2022 and DR Horton made a presentation at the Joint Planning Commission/City Council meeting on 8/01/2022. Staff provided a brief progress report at the 11/07/2022 Council Meeting.

OTHER PROJECTS

1. GIS – City staff continues to work on a GIS mapping system by inputting field data for water, sewer and storm drainage systems. Our water and wastewater consultants are using the GIS to develop capital improvement projects to serve the proposed development projects in the SOI. We hold monthly coordination meetings with a GIS Consultant.

2. FEMA Flood Map Updates – Over the two years, FEMA and their consultants have been remapping seven watersheds in the Gabilan Mountains in the vicinity of South Salinas, Chualar, Gonzales and Soledad to update their Flood Maps. Preliminary flood insurance maps were released for public review on 10/21/2021. At the 12/06/2021 City Council Meeting, City staff made a presentation on this effort along with a letter to be sent to FEMA with our comments and questions on their mapping effort. A 90-day appeal period began on 5/12/2022 and we emailed our comment letter to FEMA staff on 7/26/2022.

3. Microgrid Project – Staff has been coordinating with Concentric Power and Sage Energy/NV5 (Program Manager) on various elements of the project. Staff participates in biweekly coordination meetings. A progress meeting with staff from Concentric Power, Sage Energy/NV5 and the Electric Authority’s legal counsel was held on 8/11/2022

4. South Salinas Valley Broadband Joint Powers Authority – Staff is supporting the efforts of this newly formed JPA. This includes preparing a Request for Proposals for Legal Counsel Services, coordinating with MBEP staff on preparing the agenda packet for the 9/29/2022 Board Meeting.

Staff attended the 9/29/2022 Board meeting and presented the agenda item for Request for Proposals for Legal Counsel Services
Packet Pg. 31

PUBLIC WORKS OPERATIONS AND MAINTENANCE

WASTEWATER
Staff takes daily reads and testing at the wastewater plant. Staff repaired the Grit machine. Channel A is now fully operational. The aerator in Pond 6 has been pulled for repair. Weed abatement is recurring at the ponds. Crews removed weeds and bushes at the solar panels, Engie provided solar panel washing.

Staff regularly has to clean several lift stations, due to high number of rags clogging pumps.

The generator project is on schedule. Generators at Cal Breeze lift station, City Hall and the Police Department are being replaced.

WATER
Staff continues to monitor the wells and sampling stations around town. Staff responds to water leaks as soon as possible. The wells have had their annual testing completed. All four wells are operational.

Staff is working with FRM regarding updating the city SCADA System to add new Well 7.

The pool is being maintained. After Christmas, the staff will make repairs at the pool in order to be ready for the next swim season.

STORM WATER
Staff prepared for the winter rains. Cleaning storm drains and culverts and preparing sandbags.

PARKS

CANYON CREEK & MEYER PARKS
Staff regularly edges and mows the parks.

Packet Pg. 32
Staff has been painting over graffiti in the parks and around town.

Staff removing Graffiti at Canyon Creek Park

GOVERNMENT BUILDING
Staff continues to care for the city buildings. Staff changes filters every three months in the HVAC systems. Staff also repaired two doors at the old medical center.

STREETS
Staff performs Traffic Control at the Fifth Street Bridge every morning that school is in session. Staff trimmed trees at the north entrance of Alta Street. They were overhanging the roadway. See picture below.

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Staff installed lights and flags on Fourth Street in preparation for the 75th Anniversary event. Staff was also on call for set up and take down after the event. Staff picked up barrels and pumpkins for the event
Public Works helped with traffic control for the October 14th Homecoming Parade

TRAINING
Some staff attended a training course in using different nozzles on the Vac truck. Upon return from training, staff trained other crew members on what they learned. Staff had its annual bloodborne pathogen training in King City with the South Valley Public Works group.

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City of Gonzales

PARKS & RECREATIONDEPARTMENT

ACTIVITY REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 21, 2022
FROM: Carmen Gil, Community Engagement & Strat. Partnership Dir.

SUBJECT: Recreation Department Activity Report
Current Activities

1. For October, we had 47 children signed up for Kid Power. October, overall, was filled with lots of fun including Trick-or-Treating at the Vosti Center, a door decorating contest and a Halloween Safety presentation.

2. Kid Power had a door decorating contest where we invited parents, City of Gonzales staff including Public Works, the Police, Fire, and Recreation Department, and the Interim City Manager to vote on the kid’s doors. We had a great turnout with the Scooby Doo themed door taking first place, second place door was the Nightmare Before Christmas and the third-place door was Creatures on the Loose.

3. The Police Department came and spoke to the kids about safety for Halloween which included having the children get their candy checked, and how to make sure they had the proper clothing attire to make them visible at night and making sure parents have flashlights.

AGENDA
ITEM
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4. The City of Gonzales youth soccer league season ended this month. Last game for ages 9-12 was on Friday, October 21, 2022, and on Saturday, October 22nd for ages 2 ½ to 8. It was a very fun filled season. We ended our season with 16 teams and 4 divisions.

5. City of Gonzales Adult co-ed Volleyball league registration ended this month. Team registration ended on October 24, 2022. This season, we had a couple more teams that registered than last season. We have a total of 9 teams. We were able to create two divisions, an Upper and Lower division.

6. For volleyball, we have a total of 81 registered participants and 2 volleyball officials. Volleyball games will start first week of November.

7. City of Gonzales youth and adult open gym ended on October 27th. Adult open gym was a success. Youth open gym was not as there was minimal participation from the youth. During this time of year, the Gonzales Knights football and cheer program also takes place which is very popular in our city with youth and most likely impacted the low use of open gym for that population. As a result, youth open gym may have to change to a different time of year.

8. City of Gonzales Youth basketball registration has begun. Youth basketball is for all youth ages 3 to 14. This season we continued with the 11-14 age division but have split them. We are hoping to have a girls’ teams and a boys’ team in this age division. We are also collaborating with south county cities for the 11-14 age division. We will be competing against Soledad, Greenfield, and King City in the 11-14 age division. The basketball season will start in January 2023.

9. The Recreation Department held its annual Halloween Movie night at Centennial Park on Saturday, October 22, 2022 with help from the Gonzales Fire Department, it was a fun and relaxing evening. We had two movies that evening. The first was Nightmare Before Christmas and the second movie was Ghostbusters: Afterlife 2021. We had 26 registered vehicles and a few walk-ins. In addition to vehicles, we also offered lawn seating. This allowed the participants a chance to relax on the grass with their warm blankets and enjoy the movie. The Gonzales Little League organization came out and ran a snack bar for the event. It was a success. Yummy, delicious food, including nachos, hamburgers, and hotdogs were sold giving them an opportunity to generate some money for the team. This year we also held a Halloween costume contest. We had 37 registered participants for the costume contest. It was a lot of fun. The kiddos enjoyed it very much. Each participant received a small candy bag and a Halloween participant medal. The winners received a ribbon and a big candy bar. We can’t wait for next year. There is always room for improvement and the ideas are already pouring in, but overall, it was a great success.

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Activities in Planning Phase

1. The City of Gonzales Recreation Department is currently planning multiple activities/ events for the month of December. Starting off with our Holiday Lights event scheduled for Saturday, December 3rd down 4th Street, which will also include our Annual Tree Decorating Contest.

Followed by our Holiday Yard Decorating contest that is currently open for registration and voting is scheduled to take place on Tuesday, December 13th.

2. The Recreation Department is also planning a Holiday Lights Parade that will take place on Saturday, December 17th and we are currently still accepting registrations for this event.

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City of Gonzales

CITY MANAGER DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 21, 2022
FROM: Carmen Gil, Community Engagement & Strat. Partnership Dir.

SUBJECT: Lab Corp Lease Extension - Amendment #4

RECOMMENDATION
Staff recommends the City Council Approve Amendment #4 to the Lease Agreement with Laboratory Corporation of America for continued use of a portion of the old Medical Building at 133 Fourth Street.

BACKGROUND
Laboratory Corporation of America (Lab Corp) has provided routine medical lab services at 133 Fourth Street (Old Medical Building) for several years, and have requested several extensions to their lease. The original lease was executed in 2016 and since then, we have extended it two more times. The current Amendment (Amendment #3) extends the lease through March 31, 2023, and Amendment #4 would extend it for another two years taking us to April 1, 2025.

REVIEW AND ANALYSIS
Lab Corp has been an excellent partner during the time they have been in operation in the building and provides essential access to lab services for the community. Amendment #4 will extend their lease through April 1, 2025, with a 4% annual increase, and a 90-day termination clause.

Explain Recommendation and How it Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.

Explain: Having access to medical laboratory services in Gonzales is essential and supports our efforts of providing optimal community health opportunities.

AGENDA
ITEM
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Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.

Explain: Staff believes extending the lease is currently the best use for this City building.

City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.

Explain: This lease has cost of living increases to ensure the rent is keeping pace with inflation.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing Yes No X N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: Leasing space to health care providers is an excellent use of City-owned buildings.

ALTERNATIVES
Alternative 1 – The City Council could determine another use for that portion of the medical building.

Staff would work with the lab to vacate the premises.

Alternative 2 – The City Council could direct staff to change the lease amount or other terms. Staff will address areas as directed.

BUDGET IMPACT
The revenue from the lease is included in the City’s approved budget. If the lease were terminated, there would be a corresponding loss of revenue.

CONCLUSION
Staff recommends the City Council allow the Interim City Manager to extend the current Lease Agreement with Laboratory Corporation of America through April 1, 2025.

Attachments:

1. Amendment #4

2. Lab Corp Lease & Past Amendments
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Exhibit ‘A’
Amendment No. 4
This is an Amendment to the Lease Agreement dated January 4, 2016, between the City of Gonzales, a municipal corporation of the State of California ("Landlord") and Laboratory Corporation of America ("Tenant”) regarding the space at 133 Fourth Street, Gonzales, CA 93926.

Landlord and Tenant agree to the following changes to the Agreement:

Section 2. Term
The current Lease term set to expire March 31, 2023, is hereby extended through April 1, 2025.

Section 17 regarding termination remains in effect providing for 90-day notice by either party to terminate this Lease.

Section 4. Lease Payments
Rent for the period of April 1, 2023, through and March 31, 2024, shall be seven hundred and sixty dollars ($760) per month.

Rent for the period of April 1, 2024, through March 31, 2025, shall be seven hundred and ninety dollars ($790) per month.

In all other respects, the terms of the Agreement shall remain in effect.

LANDLORD TENANT
City of Gonzales, a municipal corporation Laboratory Corporation of America _____________________________ _____________________________ Carmen Gil, Interim City Manager Chas Cook, Vice President Date Signed: __________________ Date Signed: __________________ Packet Pg. 40
Attachment: Amendment #4 (2574 : Lab Corp Amendment #4 - Lease Extension) Packet Pg. 41
Attachment: Lab Corp Lease & Past Amendments (2574 : Lab Corp Amendment #4 - Lease Extension) Packet Pg. 42
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Attachment: Lab Corp Lease & Past Amendments (2574 : Lab Corp Amendment #4 - Lease Extension) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO:

DATE:

FROM:

Honorable Mayor Rios and City Council
November 21, 2022
Patrick Dobbins, Public Works Director
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-81 & Resolution No. 2022-82

RECOMMENDATION
It is recommended that the City Council:

1. Adopt Resolution No. 2022-81, A Resolution of the City Council of the City of Gonzales authorizing the Interim City Manager or designee to execute and submit a Clean Water State Revolving Fund Financial Assistance Application to the State Water Resources Control Board (SWRCB) for the planning, design, and construction of the 1.0 million gallons a day (MGD) Industrial Wastewater System, and execute SRF financial assistance agreements and any amendments with the SWRCB; and

2. Adopt Resolution No. 2022-82, A Resolution of the City Council of the City of Gonzales designating the amount of the 1.0 million gallons a day (MGD) Industrial Wastewater System expenditures to be reimbursed by proceeds from the Clean Water State Revolving Fund.

BACKGROUND
As presented in staff’s progress report at the November 7, 2022 Council meeting, the Industrial Wastewater System (IW System) Project is a key component of the City’s approach to expanding the wastewater system beyond the current 1.3 million gallons/day permitted capacity. The various agprocessing facilities (Taylor Farms, Del Monte, Braga Fresh, etc.) within the city’s Business Industrial Park discharge approximately 800,000 gallons/day of agricultural wash water into the city sewer system.

This is approximately two-thirds of the flow to the City wastewater treatment plant.

Completion of the new IW System will restore capacity at the existing wastewater treatment plant (WWTP) and allow for the facility to be upgraded to meet new Regional Board permit requirements.

AGENDA
ITEM
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REVIEW & ANALYSIS
The IW System is estimated to cost approximately $27 million (hard and soft costs). The cost estimate includes:
• Hard costs (Construction contracts)
• Soft costs which include consultants (Designer, Program and Construction Managers, Environmental, Surveying), temporary and permanent easements, legal support, and preparation of the project EIR
• Contingency for unforeseen costs
• Escalation to the mid-point of construction
The project will be constructed under two separate construction contracts:

1. Pipeline contract estimated to cost $6,000,000

2. Treatment facility estimated to cost $18,000,000
Staff considered funding the project from the State Infrastructure Bank and other sources and pursued grant funding for the project. Staff decided on funding the project through the State Revolving Loan Program with the State Water Resource Control Board due to the very low interest rate (currently 2.0%).

Staff is pursuing the potential for principal forgiveness of the SRF loan due to the city’s status as an Economically Disadvantaged Community which would greatly reduce the debt service for the project.

The City’s SRF application was submitted in fall of 2021 and favorably reviewed in the spring of 2022.

There are four parts of the review; Environmental, Technical, Financial and Legal. The technical review is completed, the Environmental review is nearly complete and financial review is in progress. The Legal review is the process of negotiating the final terms of the loan agreement and takes place last. The current schedule is to complete the Environmental and Financial reviews by the end of 2022 and execute a funding agreement in the first quarter of 2023.

The term of the SRF loan is usually 30 years with an interest rate that is fixed when the loan agreement is signed.

The Financial part of the SRF application requires adoption of the two attached resolutions.

1. Adoption of Authorizing Resolution - Authorizing the Interim City Manager or designee to apply for an SRF loan for planning, design, and construction of the 1.0 MGD Industrial Wastewater System. The resolution also authorizes the Interim City Manager or his designee, the Director of Public Works, to execute SRF financial assistance agreements and any amendments with the SWRCB. The SRF financial assistance agreements do not obligate the City to borrow the funding.

2. Adoption of Reimbursement Resolution - The SRF program requires the City to pay for project costs and then be reimbursed by the SRF loan. Through the Reimbursement Resolution, the Council will designate a maximum of $27 million in funding for expenditures for the 1.0 MGD Industrial Wastewater System.

Staff recommends adoption of the two attached resolutions.

How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.

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Explain: Constructing an Industrial Wastewater System supports our vision to expand the city’s wastewater system capacity and support economic development that will provide more local employment opportunities for City residents.

Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: Constructing an Industrial Wastewater Treatment Facility will enhance the community’s quality of life by providing for the continued treatment and safe disposal of the wastewater generated by the processing facilities in the Industrial Business Park.

City services will be delivered in a cost-effective, respectful and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing X Yes No N/A
• Recreation Yes X No N/A
• Environment X Yes No N/A
• Education Yes X No N/A

ALTERNATIVES
Staff presented alternatives on the different ways to expand and upgrade the City’s wastewater system at the August 14, 2020 Council meeting. The decision at that time was to pursue building an Industrial Wastewater System. Therefore, alternatives are no longer considered.

BUDGET IMPACT
There is no budget impact to this evening’s presentation. The loan from the State Water Resource Control Board will be repaid from Sewer Impact Fees and Wastewater Enterprise monies.

CONCLUSION
It is recommended that the City Council:

1. Adopt Resolution No. 2022-81, A Resolution of the City Council of the City of Gonzales authorizing the Interim City Manager or designee to execute and submit a Clean Water State Revolving Fund Financial Assistance Application to the State Water Resources Control Board (SWRCB) for the planning, design, and construction of the 1.0 million gallons a day (MGD) Industrial Wastewater System, and execute SRF financial assistance agreements and any amendments with the SWRCB; and
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2. Adopt Resolution No. 2022-82, A Resolution of the City Council of the City of Gonzales designating the amount of the 1.0 million gallons a day (MGD) Industrial Wastewater System expenditures to be reimbursed by proceeds from the Clean Water State Revolving Fund.

Attachments:

1. Resolution No. 2022-81

2. Resolution No. 2022-82
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RESOLUTION NO. 2022-81

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AUTHORIZING THE INTERIM CITY MANAGER OR DESIGNEE TO EXECUTE AND

SUBMIT A CLEAN WATER STATE REVOLVING FUND FINANCIAL ASSISTANCE

APPLICATION TO THE STATE WATER RESOURCES CONTROL BOARD (SWRCB) FOR THE PLANNING, DESIGN, AND CONSTRUCTION OF THE 1.0 MILLION

GALLONS A DAY (MGD) INDUSTRIAL WASTEWATER SYSTEM, AND EXECUTE SRF

FINANCIAL ASSISTANCE AGREEMENTS AND ANY AMENDMENTS WITH THE SWRCB

R E C I T A L S
A. The State of California State Water Resources Control Board (the “Board”) has a funding program entitled “Clean Water State Revolving Fund,” (“CWSRF”) and pursuant to this program, the Board makes funds available for various capital wastewater and recycled water‐ related projects.

B. The City of Gonzales (the “City”) owns and operates a Wastewater System (the “System”) and engages in various capital improvement projects to improve and maintain the System.

C. The City wishes to apply for CWSRF funds to cover the cost of the 1.0 MGD Industrial Wastewater System Project (“Project”).

D. The Project will be implemented in multiple phases to increase industrial wastewater capacity.

The City is currently seeking CWSRF funding for Phase 1 of the Project.

NOW, THEREFORE, the Council of the City of Gonzales RESOLVES as follows:

SECTION 1. The Council hereby finds that it is in the City and the public’s interest in the health, safety and welfare of the community to file a Financial Assistance Application with the Board to seek funds available under the State Revolving Fund for the Project.

SECTION 2. The Council hereby authorizes and directs the Interim City Manager or the Director of Public Works, to:
▪ File and sign, for and on behalf of the City, a Financial Assistance Application for a financing agreement from the Board for the planning, design, and construction of the Project.
▪ Provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the Board and any amendments or changes thereto.
▪ Represent the City in carrying out the City’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws.

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Attachment: Resolution No. 2022-81 (2580 : Resolution No. 2022-81 & Resolution No. 2022-82 Wastewater System Appl)

SECTION 3. The Council finds that the filing of a Financial Assistance Application with the State Water Resources Control Board does not constitute a project requiring California Environmental Quality Act (CEQA) review. This action does not meet the definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment. The Council further finds that the potential environmental effects of implementation of the Project were analyzed and discussed in the Industrial Wastewater Conveyance and Industrial Wastewater Treatment Facility Environmental Impact Report (SCH # 2020069049) certified in September 2021.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 21
st day of November 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
____________________________
Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2022-81 (2580 : Resolution No. 2022-81 & Resolution No. 2022-82 Wastewater System Appl)

RESOLUTION NO. 2022-82

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES DESIGNATING THE AMOUNT OF THE 1.0 MILLION GALLONS A DAY (MGD) INDUSTRIAL

WASTEWATER SYSTEM EXPENDITURES TO BE REIMBURSED BY PROCEEDS FROM

THE CLEAN WATER STATE REVOLVING FUND
WHEREAS, the City of Gonzales ("City") desires to finance the costs of constructing or reconstructing certain public facilities and improvements relating to its wastewater system, including certain treatment facilities, pipelines and other infrastructure (the "Project"); and WHEREAS, the City intends to finance the construction and/or reconstruction of the Project or portions of the Project with monies ("Project Funds") provided by the State of California, acting by and through the State Water Resources Control Board (State Water Board); and
WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), and
WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the City desires to incur certain capital expenditures (the "Expenditures") with respect to the Project from available monies of the City; and WHEREAS, the City has determined that those monies to be advanced on or after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the City for the Expenditures from the proceeds of the Obligations.

NOW, THEREFORE, THE GONZALES CITY COUNCL DOES HEREBY
RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. The City hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds.

SECTION 2. The reasonably expected maximum principal amount of the Project Fundsis $27,000,000.

SECTION 3. This resolution is being adopted no later than 60 days after the date on which the CITY will expend monies for the construction portion of the Project costs to be reimbursed with Project Funds.

SECTION 4. Each City expenditure will be of a type properly chargeable to a capital account under general federal income tax principles.

SECTION 5. To the best of our knowledge, this City is not aware of the previous adoption of official intents by the City that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.

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Attachment: Resolution No. 2022-82 (2580 : Resolution No. 2022-81 & Resolution No. 2022-82 Wastewater System Appl)

SECTION 6. This resolution is adopted as official intent of the City in order to comply with TreasuryRegulation §1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs.

SECTION 7. All the recitals in this Resolution are true and correct and this City so finds, determines and represents.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 21
st day of November 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
_____________________________
Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2022-82 (2580 : Resolution No. 2022-81 & Resolution No. 2022-82 Wastewater System Appl) City of Gonzales

COMMUNITY DEVELOPMENT DEPARTMENT

STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: November 21, 2022
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Explore the Idea of Installing 1-2 Digital-Screen(S) on City Owned Parcels Facing the 101 Freeway. the Sign(S) Would/Could Display Advertisements for National, Regional and Local Businesses, Civic Messages, and Emergency Communications

RECOMMENDATION
Although such signs are currently not permitted by the City’s Sign Code. Staff recommends the City Council:
• Receive a presentation by Legacy Signs and City staff to explore consideration of a potential communications and revenue generating opportunity; and • Direct staff to either:

1. Gather more information on the pros and cons of establishing a digital billboard on City-owned parcels; or

2.Develop an RFP seeking applicants like Legacy Signs to be potential partners in designing, building and establishing a digital billboard on City property that could generate revenue for the City.

BACKGROUND
City staff has been approached with a promising opportunity that can generate general purpose revenue for the City while serving multiple purposes at no expense to the City. Billboards are good communication tools AGENDA
ITEM
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for promoting a business or brand but when they can be even more personalized with local information such as a City event, local businesses or High School celebration they can become even more crucial to the local infrastructure.

Billboard operators like Legacy Signs are looking for municipalities to work with to establish their business while providing a service to the community along with a revenue opportunity. In the case of digital billboard operator, Legacy Signs, they are proposing an opportunity where the business would be responsible for all sign operations and maintenance including all costs to design, permit and establish such a characterredefining sign/billboard on City-owned property. Therefore, staff thought it prudent to bring a presentation and rough analysis to the Council to determine if further consideration is warranted or desired.

REVIEW & ANALYSIS
Construction and size.

The proposed size of a digital billboard like the one Legacy Signs would like us to consider is of 70 feet from ground-level, capped by a 14-foot high by 45-foot length for a 630 square foot digital LED sign.

Materials and design can be chosen by City representatives, to fit in with the City’s current look and feel while creating a distinctive landmark that can identify the community and let all drivers know that they are entering or passing Gonzales.

Below are some examples of what the digital billboard could look like in the City.

Operations:

It is assumed that the sign could be operated according to any programmed or agreed upon schedule and brightness. Staff hypothesizes that an up-light or down-light could be shone on the suggested placement of the City logo to make it stand out.

Potential Benefits to the City:

Benefits to the City can include:
• Ability to communicate with the public about ongoing City events, emergencies and other important news
• All costs to produce the sign and landmark including permitting will be covered by billboard operator
• Promotion of local businesses to 101 traffic at a scaled down rate • All operations, designs and maintenance conducted by billboard operator • Revenue for the City
Location:

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City-owned parcels that could host free-standing Freeway oriented sign(s) are shown on the map below.

Both are on the east side of Hwy 101, one with an orientation for southbound travelers, and a second for northbound travelers. Refer to the blue arrows below.

City Review with Adopted Codes and City Regulations
Adopted Codes and Regulations.

Currently there are City codes that prohibit this kind of billboard/signage. However, at Council’s direction those Codes could be looked at. Adjustments would need to be made in Code Sections for the Public Facilities District, Prohibited Signs, General Sign Regulations, Freestanding Freeway Signs, Public Interest Signs, and Temporary Political Signs.

The “Presence” of the Sign.

As 70-foot tall electronic display billboards appearing along Hwy 101 would be a potentially, “characterredefining” addition to the Gonzales and central Salinas Valley landscape, how can we assure a positive and progressive image is made?
• Require a Light study to assure no nuisance
• Visual Simulations particular to exact locations in Gonzales are needed.

Other Agencies with discretion on this matter.

California Department of Transportation (Caltrans).

Explain the Recommendation and How it Supports the Vision Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.

Explain: Such a sign could be designed, drawing from local architecture or community icons, to re-emphasize known visual elements to the City of Gonzales; the winery visible to Hwy 101, the water tower, mission style finishes of stucco and tile, silhouettes of the east or west valley mountain ranges, agricultural “reminders,” etc. Such designs may preserve and retain our small-town charm if done well. Public Service announcements being displayed lend themselves to informing the community of family-friendly and community-wide activities, as well as display alerts and information that can facilitate public safety.

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Explain how the Recommendation Directly Implements the Mission The City Council and staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community.

Explain: In addition to the attributes discussed above, the City can demonstrate bold leadership by allowing such a sign to serve community interests, as well as local, regional and broader commercial interests. Furthermore, the city can offer rather idle public properties for site locations (drainage pond resources), that will not detract from or subtract from our limited private property commercial site opportunities.

City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner.

Explain: It could be the City’s intention to allow such a sign completely at the sign company’s expense, and for the City to collect rent or annual lease payments for the use of public properties.

As such, collecting rent without expenses should prove to be a net positive gain for the City’s budget. Additionally, with the greater exposure of local businesses that could display ads, we would hope for increased local commercial activity that would benefit private local businesses as well as result in enhanced retail sales tax collection.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See above explanations.

ALTERNATIVES
Following the presentation be Legacy Signs; the Council may consider the following alternatives:
o Direct staff to discontinue considering digital billboard opportunities, or o Request additional information, such as:
• A “before-and-after” Market Study.
• Demonstrate how local businesses who advertise on freeway signs have benefitted from the highway exposure.
• Examine reported pros and cons of such signs/billboards. o The Council could additionally form a subcommittee of Planning Commissioners, Council Members, the Community Development Director and City Manager to explore the opportunity further.
o Or combinations of Alternatives 2 and 3 or a unique motion by the Council.

BUDGET IMPACT
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Placing a digital billboard designed as a City landmark on city-owned property would bring in significant revenue for the City in which we can use for general purposes.

CONCLUSION
Although such signs are currently not permitted by the City’s Sign Code. Staff recommends the City Council:
• Receive a presentation by Legacy Signs and City staff to explore consideration of a potential communications and revenue generating opportunity; and • Direct staff to either:

1. Gather more information on the pros and cons of establishing a digital billboard on City-owned parcels; or

2. Develop an RFP seeking applicants like Legacy Signs to be potential partners in designing, building and establishing a digital billboard on City property that could generate revenue for the City.

Attachments:

1. Powerpoint Presentation
Packet Pg. 66
1 City of Gonzales
Monument Style Digital
Welcome Sign
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) Dear Honorable Mayor Rios and Esteemed Council Members:

Legacy Sign Company would like to present the opportunity for one or two monument style digital LED signs welcoming travelers as they drive into the City of Gonzales. Because of their digital Led capabilities, they provide the City and businesses powerful communications capabilities to connect with audiences traveling along the highway. There would be no cost to the City and in fact, considerable revenues would be generated to the city from the signs.

Our design team would work with the City to create a sign structure that incorporates the unique character of Gonzales into the design of the sign structures. With this thoughtful approach to the design of the sign structure, the sign structure itself will itself show off the style and culture of Gonzales and create appeal to anyone driving through the City.

Signs are powerful communications platform which can connect cities and their businesses to thousands of people each day. Located on the top part of these monument style signs is a digital LED display to be used for commercial and non-commercial messaging. The City will be allocated a portion of this ad space for its own promotions and community messages at no cost to the city. Potential ways the City could use this free ad space would be to further the brand of Gonzales as the Wine Capital of Monterey County, promote tourism, celebrate local community achievements and advertise local city endorsed events. Hypothetical city promotional ads are provided later in this presentation.

Additionally, the digital LED portion of the signs will give local businesses a game changing opportunity to connect with customers traveling through Gonzales who’d otherwise be unreachable. Businesses based within the city limits are incentivized with discounted ad space on the sign to help them utilize its powerful marketing capabilities and grow their businesses.

Gonzales has much to be proud of and great offerings which need to be shared. Its my hope that you find this proposal to be a solution for Gonzales to share these offerings.

Sincerely,
Scott Smith
President
2 Concept Summary
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 3 Sign Structure Design Samples
Welcome to Gonzales
Wine Capital of
Monterey County
Fine
Italian
Food
Next Exit
346 Alta Street
These design samples are indicative of various styles of sign architecture designs. The city will work with the sign company design team to create a structure that best represents the local landscape, culture and desired architectural style. The goal is to great something that City and its community can be proud of.

Advertising creative on the 14’x48’ LED digital screens changes every 8 seconds on a 64 second loop. These digital LED screens are of highest quality and often mistaken for being static signs until the creative changes. Additional space below the LED screen is static non-digital and may be used for the City seal or promotional slogan.

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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 4 Sign Structure Design Samples
Gonzales
California
Wine Capital of
Monterey County
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) Proposed Sign Locations
Potential sign locations are on the North and South ends of the City Limits.

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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 14’x48’ LED screen with a max height no more than 50’
6 101 FWY at Herold Pkwy - Facing South
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 7 101 FWY at Herold Pkwy - Facing North Proposed Site
14’x48’ LED screen with a max height no more than 50’
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 8 101 FWY at Associated Ln - Facing North
14’x48’ LED screen with a max height no more than 50’
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 9 101 FWY at Associated Ln - Facing South
14’x48’ LED screen with a max height no more than 50’
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) Benefits to City
10 • A one-time payment to City in exchange for long term leases for either one or two signs. • A % of the total advertising space available to the City to promote tourism, City branding, events, education initiatives, etc
• The sign company can provide creative services for the creation of its advertising content • Local businesses based within the City of Gonzales will receive a discount to purchase advertising space
• No charge for Emergency communication services to the City and Law Enforcement - Amber Alerts, FBI wanted, natural disaster warnings, etc
• Advertising categories such as cannabis, political, religious, guns or liquor can be prohibited • Typically there is no expense to the City for these projects Packet Pg. 76
Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) Tourism, Community,
Emergency and Local
Business Creative Examples
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 12 Sample Tourism Creative
VISITGONZALES.COM
VISITGONZALES.COM

WINE CAPITAL OF

MONTEREY COUNTY
VISITGONZALES.COM
VISITGONZALES.COM
VISITGONZALES.COM
SWIRL
AROUND

GONZALES
VISITGONZALES.COM
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 13 Sample Local Business Ads

LOCALLY OWNED
Take The Next Exit
724 Alta Street
Jose Serrano
Your Local Gonzales Agent
(831)675-3347
Home Auto Renters Life and More

TAYLOR FARMS
Family Health
& Wellness Center
850 Fifth Street, Gonzales - Open Until 7pm

EASY ENROLLMENT
GOING ON NOW!
GET STARTED AT:

Next Exit - 851 5th Street HARTNELL.EDU
Linda Taqueria
Gonzales’ Best
Taco Shop
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) 14 Sample Community, Safety and Non-Profit Advertisements Gonzales Art Festival August 10-14 Gonzales Community Center Go
Gonzales
Beat
Salinas!!!
Congratulations
to Student of
the month
Jamie Rojas!!!
Congratulations to Gonzales
Girls Varsity Soccer
2023 League Champs!!!
Rotary of Gonzales
Service Above Self
Join Today!

EMERGENCY - MISSING
James Smith
Age 5 - Male
2018 Ford Sedan
Lic # 7EZE655
Call 831-500-4455 Call 831-555-9090
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) Q: What kind of permitting and entitlements are required? A: City and Caltrans permits will be required
Q: How many different advertisements run on the sign at once? A: The sign can run as many as 8 advertisers running for 8 second each in a 64 second loop. These signs usually run at about 75% occupancy thus creating opportunity for City to utilize unsold ad space.

Q: How is the sign used for Emergency Communications?
A: The sign company will work with law enforcement and the FBI in the event of an Amber Alert or Wanted criminal on the run. The sign can additionally be used in the event of a natural disaster to quickly communicate safety messages. During any of these events, the signs prioritize these messages until City and law enforcement needs are met.

Frequently Asked Questions
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) Questions?
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Attachment: Powerpoint Presentation (2584 : Digital Sign on City Owned Property) City of Gonzales

PUBLIC WORKS / CITY ENGINEER DEPARTMENT

STAFF REPORT
TO:

DATE:

FROM:

Honorable Mayor Rios and City Council
November 21, 2022
Patrick Dobbins, Public Works Director
THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz & Tseng and Approving Task #1 for Preparation of Water and Sewer Rate Studiesfor a Not-To-Exceed Fee of $68,000 Which Includes a Contingency Budget of $8,410

RECOMMENDATION
It is recommended that the City Council Adopt Resolution No. 2022-80 A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Master Services Agreement with Lechowicz & Tseng and Approving Task #1 for Preparation of Water and Sewer Rate Studies for a Not-To-Exceed Fee of $68,000, which Includes a Contingency Budget of $8,410.

BACKGROUND
By law, the City’s water and sewer rates must cover the costs to operate, maintain, and upgrade the water and wastewater utilities. The rates also must be sufficient to service debt obligations and fund reserve accounts. To confirm rates are compliant with state law, it is necessary to perform periodic reviews of the rates. It has been a number of years since the city last conducted a rate study and that is why staff is bringing this item forward.

In addition to confirming conformance with state law, the State Revolving Fund loan application process construction of the Industrial Wastewater System requires that the city demonstrate that the sewer rates are adequate to cover the required costs plus the anticipated costs to cover repayment of the loan.

The city’s water and sewer rates are included in the city’s “Cost of Services” and are adjusted each year based on the Consumer Price Index. The objectives of the Water and Sewer Rate Studies are to:

AGENDA
ITEM
16 Packet Pg. 83
• Provide recommendations to adequately fund the city’s current and projected water and sewer operations.
• Ensure that revenues are adequate to meet any debt used to finance capital improvements. • Address funding maintenance of infrastructure by incorporating reasonable projections for facility replacement within the revenue requirements and rate calculations. • Review city financial policies and make recommendations where appropriate with respect to adequate reserves for operations, rate stabilization, and capital improvements. • Affirm the appropriateness of existing user categories and/or develop new or combine categories to simplify rates and ensure equity among users.
• Provide recommended rate structures based on the cost of service and State requirements • The rate structures shall be in compliance with State Proposition 218.

REVIEW & ANALYSIS
The water and sewer rate studies will be based on a comprehensive review of the City’s water and sewer funds and budgets, Wastewater Collection System and Wastewater Treatment Plant Master Plans, capital improvement plans, current usage data, future growth of the City and other relevant information.

On August 10, 2022 staff issued a Request for Proposals to eight consultant firms with experience in preparing water and sewer rate studies. Proposals were received by the September 8, 2022 deadline from the following four firms:
• Lechowicz & Tseng
• Willdan Financial Services
• Robert D. Niehaus, Inc.
• Bartle Wells Associates
A review committee comprised of city staff, Mike Howard, and Chris Davenport of Psomas (Program Manager on city sewer projects) reviewed and ranked the submitted proposals. Three firms were shortlisted and interviewed on November 8. The review committee ranked Lechowicz & Tseng as the top firm based on their proposal, interview, and reference checks.

Lechowicz & Tseng’s proposal is attached to this staff report. Staff recommends the Council authorize a $68,000 Master Services Agreement with Lechowicz & Tseng to prepare Water and Sewer Rate Studies for a not-to-exceed fee of $68,000.

This contract will be funded with a combination of Water and Sewer Enterprise funds. A future task under their Master Services Agreement will be preparation of a rate study for the city’s new industrial wastewater system (pipeline and treatment facility) expected to begin construction in 2023 and completed in 2024.

How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small town charm.

Explain: Preparing the water and sewer rates will provide for adequate funding of the city’s current and projected water and sewer operations.

Explain how the Recommendation Directly Implements the Mission Packet Pg. 84
The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: The recommended rate structures are based on the cost of service and State requirements.

City services will be delivered in a cost-effective, respectful and friendly manner to insure the safety and well being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.

Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes X No N/A
• Housing X Yes No N/A
• Recreation Yes X No N/A
• Environment Yes X No N/A
• Education Yes X No N/A
Explain: See Vision above.

ALTERNATIVES

1. Direct staff to not prepare Water and Sewer Rates Studies at this time.

2. Direct staff to seek additional proposals for this work.

3. Amend or modify staff recommendation.

BUDGET IMPACT
This contract will be funded with a combination of Water and Sewer Enterprise funds.

CONCLUSIONS
It is recommended that the City Council Adopt Resolution No. 2022-80 A Resolution of the City Council of the City of Gonzales Authorizing Execution of a Master Services Agreement with Lechowicz & Tseng and Approving Task #1 for Preparation of Water and Sewer Rate Studies for a Not-To-Exceed Fee of $68,000, which Includes a Contingency Budget of $8,410.

Attachments:

1. Resolution No. 2022-80

2. Master Service Agreement

3. Lechowicz & Tseng Proposal
Packet Pg. 85
RESOLUTION NO. 2022-80

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES

AUTHORIZING EXECUTION OF A MASTER SERVICES AGREEMENT WITH LECHOWICZ & TSENG AND APPROVING TASK #1 FOR PREPARATION OF WATER AND SEWER RATE STUDIES FOR A NOT-TO-EXCEED FEE OF $68,000 WHICH INCLUDES A CONTINGENCY BUDGET OF $8,410
WHEREAS, by State law, the city’s water and sewer rates must cover the costs to operate, maintain, and upgrade the water and wastewater utilities.

WHEREAS, staff issued a Request for Proposals for preparation of Water and Sewer Rate Studies on August 10, 2022; and
WHEREAS, four proposals were received by the September 8, 2022 deadline and staff interviewed three firms on November 8, 2022; and
WHEREAS, a review committee ranked Lechowicz & Tseng as the top firm based on their proposal, interview, and reference checks; and
WHEREAS, funding for Task #1 will be with a combination of Water and Sewer Enterprise funds; and
WHEREAS, staff recommends the Council authorize a Master Services Agreement with Lechowicz & Tseng for Task #1 which is preparation of Water and Sewer Rate Studies for a not-toexceed fee of $68,000.

NOW THEREFORE, BE IT HEREBY RESOLVED that the City Manager is authorized and further directed to prepare and execute a Master Services Agreement with Lechowicz & Tseng to prepare Water and Sewer Rate Studies for a not-to-exceed fee of $68,000.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gonzales duly held on the 21
st day of November 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_______________________________
Jose L. Rios, The Honorable Mayor
ATTEST:
____________________________
Mary Villegas, Deputy City Clerk
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Attachment: Resolution No. 2022-80 (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz & Consulting Services Agreement between November 21, 2022 City of Gonzales and Lechowicz & Tseng Page 1 of 13
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NON-EXCLUSIVE MASTER SERVICES AGREEMENT BETWEEN THE CITY OF GONZALES

AND LECHOWICZ & TSENG FOR WATER, SEWER, AND INDUSTRIAL SEWER RATE STUDIES THIS AGREEMENT for consulting services is made by and between the City of Gonzales ("City") and Lechowicz & Tseng ("Consultant") (together sometimes referred to as the "Parties") as of November 21, 2022 (the "Effective Date").

Section 1. SCOPE OF SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work attached as Exhibit A at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on June 30, 2026, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement, as referenced in Section 8.

1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time. All work performed under this Agreement shall be authorized in advance and in writing by a specific Task Order prior to the commencement of services. Each Task Order shall describe the nature of the specific task or service to be performed by the Consultant, the estimated number of hours within which such task or service must be completed and the compensation for such task or service. Details shall include a description of the task or service which Consultant shall perform, the format and schedule for deliverables, the schedule of performance, and the schedule of compensation. Consultant shall not perform any task or service unless authorized by a fully executed Task Order. Consultant shall advise city staff in writing of any anticipated change in any task or service, fee or time schedule, and shall obtain city staff’s written consent to the change prior to making any changes.

1.5 Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 1.1 above and to satisfy Consultant's obligations hereunder.

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Section 2. COMPENSATION. The City will pay Consultant’s invoices under each authorized Task Order on an hourly not-to-exceed basis. The hourly rates in Exhibit B apply to all Task Orders. City shall pay Consultant for services rendered pursuant to this Agreement from deposits made by development applicants at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City in writing, Consultant shall not bill City for duplicate services performed by more than one person.

Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant's estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:
 Serial identifications of invoices; i.e., Progress Bill No. 1 for the first invoice, etc.;  The beginning and ending dates of the billing period;  A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
 For each work item under each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense;
 The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder;
 Consultant shall give separate notice to the City when the total number of hours worked by Consultant and any individual employee, agent, or subcontractor of Consultant reaches or exceeds 800 hours within a 12-month period under this Agreement and any other agreement between Consultant and City. Such notice shall include an estimate of the time necessary to complete work described in Exhibit A and the estimate of time necessary to complete work under any other agreement between Consultant and City, if applicable.

2.2 Monthly Payment. City shall make payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. Notwithstanding, Consultant and City acknowledge that payment for Consultant’s services are fully dependent on development applicants’ deposits and that the timing of City’s invoice payment may be adversely impacted by inadequate applicant Packet Pg. 88
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funds. City shall make a good -faith effort to ensure that all development applicant accounts are maintained at a level to cover Consultant’s anticipated costs.

2.3 <<Not Used>>

2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment.

2.5 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the compensation schedule attached hereto as Exhibit B.

2.6 Reimbursable Expenses. Any reimbursable expenses are included in the authorized contract amount and shall be approved by city staff in advance.

2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

2.8 Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets to verify costs incurred to that date.

2.9 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

Section 3. FACILITIES AND EQUIPMENT. Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement.

Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work to the City. Consultant shall maintain the insurance policies required by this section throughout the term of Packet Pg. 89
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this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence that such insurance is in effect to City.

Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant shall maintain all required insurance listed herein for the duration of this Agreement.

4.1 Workers' Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any and all persons employed directly or indirectly by Consultant. The Statutory Workers' Compensation Insurance and Employer's Liability Insurance shall be provided with limits of not less than $1,000,000 per accident. In the alternative, Consultant may rely on a selfinsurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or the Consultant, if a program of self-insurance is provided, shall waive all rights of subrogation against the City and its officers, officials, employees, and volunteers for loss arising from work performed under this Agreement.

4.2 Commercial General and Automobile Liability Insurance.

4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than $1,000,000 per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles.

4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an "occurrence" basis. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001, Code 1 (any auto). No endorsement shall be attached limiting the coverage.

4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:

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a. The Insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
b. City, its officers, officials, employees, and volunteers are to be covered as insureds as respects: liability arising out of work or operations performed by or on behalf of the Consultant; or automobiles owned, leased, hired, or borrowed by the Consultant.
c. For any claims related to this Agreement or the work hereunder, the Consultant's insurance covered shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.
d. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after 30 days' prior written notice has been provided to the City.

4.3 Professional Liability Insurance.

4.3.1 General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than $1,000,000 covering the licensed professionals' errors and omissions. Any deductible or self-insured retention shall not exceed $150,000 per claim.

4.3.2 Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates. c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Consultant shall purchase an extended period coverage for a minimum of five years after completion of work under this Agreement.

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d. A copy of the claim reporting requirements must be submitted to the City for review prior to the commencement of any work under this Agreement.

4.3.3 Additional Requirements. A certified endorsement to include contractual liability shall be included in the policy.

4.4 All Policies Requirements.

4.4.1 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII.

4.4.2 Verification of coverage. Prior to beginning any work under this Agreement, Consultant shall furnish City with complete copies of all policies delivered to Consultant by the insurer, including complete copies of all endorsements attached to those policies. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. If the City does not receive the required insurance documents prior to the Consultant beginning work, it shall not waive the Consultant's obligation to provide them. The City reserves the right to require complete copies of all required insurance policies at any time.

4.4.3 Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, employees, and volunteers; or the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.

4.4.4 Wasting Policies. No policy required by this Section 4 shall include a "wasting" policy limit (i.e., limit that is eroded by the cost of defense).

4.4.5 Waiver of Subrogation. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss. Consultant agrees to obtain any endorsements that may be necessary to affect this waiver of subrogation.

The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the consultant, its employees, agents, and subcontractors.

4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each Packet Pg. 92
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subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant's breach:
 Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
 Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or  Terminate this Agreement.

Section 5. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. Consultant shall, to the fullest extent allowed by law, with respect to all Services performed in connection with this Agreement, defend with counsel acceptable to City, indemnify, and hold City, its officers, employees, agents, and volunteers, harmless from and against any and all claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, ("Claims"). Consultant will bear all losses, costs, damages, expense and liability of every kind, nature and description that arise out of, pertain to, or relate to such Claims, whether directly or indirectly ("Liability"). Such obligations to defend, hold harmless and indemnify the City shall not apply to the extent that such Liabilities are caused by the sole negligence, active negligence, or willful misconduct of the City.

With respect to third party claims against the Consultant, the Consultant waives any and all rights of any type of express or implied indemnity against the Indemnitees.

Section 6. STATUS OF CONSULTANT.

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System Packet Pg. 93
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(PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws and regulations applicable to the performance of the work hereunder, including but not limited to, the California Building Code, the Americans with Disabilities Act, and any copyright, patent or trademark law. Consultant's Failure to comply with any law(s) or regulation(s) applicable to the performance of the work hereunder shall constitute a breach of contract.

7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.

7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person's race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.

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Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement.

Section 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant.

Consultant may cancel this Agreement upon 30 days' written notice to City and shall include in such notice the reasons for cancellation.

In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement.

8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period.

8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the parties.

8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant's unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant.

Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.

8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the termination of this Agreement.

8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall include, but not be limited to, the following:

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8.6.1 Immediately terminate the Agreement;

8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement;

8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or

8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.

Section 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant's Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

9.2 Consultant's Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement.

9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement.

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Section 10 MISCELLANEOUS PROVISIONS.

10.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Monterey or in the United States District Court for the Northern District of California.

10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.

10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a "conflict of interest," as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq.

Consultant hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Consultant was an employee, agent, appointee, or official of the City in the previous twelve months, Consultant warrants that it did not participate in any manner in the forming of this Agreement. Consultant understands that, if this Agreement is made in violation of Government Code §1090 et seq., the entire Agreement is void and Consultant will not be entitled to any compensation Packet Pg. 97
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for services performed pursuant to this Agreement, including reimbursement of expenses, and Consultant will be required to reimburse the City for any sums paid to the Consultant.

Consultant understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California.

10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

10.9 Contract Administration. This Agreement shall be administered by the City’s Public Works Director ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee.

10.10 Notices. Written notices to Consultant shall be sent to:

Alison Lechowicz, Principal
Lechowicz & Tseng
909 Marina Village Parkway, Suite 135
Alameda, CA 94501 .

Written notices to City shall be sent to:

Mary Villegas, Administrative Specialist/Deputy City Clerk City of Gonzales
P.O. Box 647
147 Fourth Street
Gonzales, CA 93926

10.11 Professional Seal. Where applicable in the determination of the contract administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example.
_________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.

10.12 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibits A and B represents the entire and integrated agreement Packet Pg. 98
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between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral.

Exhibit A Task Order #1 Scope of Services
Exhibit B Rate Schedule

10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

10.14 Non-Responsibility for General Contractor Responsibilities and Duties. Unless otherwise agreed by City and Consultant in writing, nothing in Consultant's services shall be construed to mean that Consultant assumes any of the contractual responsibilities or duties of the general contractor. The general contractor is solely responsible for construction means, methods, sequences and procedures used in the construction of a project and for related performance in accordance with its contract with the City. The general contractor shall not be relieved of its responsibility for the safety of the workplace or for the method or manner of construction. The Consultant and its personnel have no authority to exercise any control over or charge of acts or omissions of the general contractor or their employees in connection with the construction work.

The Parties have executed this Agreement as of the Effective Date.

CITY OF GONZALES LECHOWICZ & TSENG

Carmen Gil, Interim City Manager Alison Lechowicz, Principal Attest:

Mary Villegas, Deputy City Clerk
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EXHIBIT A
TASK #1 SCOPE OF SERVICES
.

Packet Pg. 100 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz September 8, 2022
Patrick Dobbins, Public Works Director/City Engineer
City of Gonzales
147 Fourth Street
Gonzales, CA 93926
Dear Mr. Patrick Dobbins,
Lechowicz & Tseng Municipal Consultants (L&T) is pleased to submit a proposal for Water and Sewer Rate Studies to the City of Gonzales (City). Established in 2017 and operated as a limited liability company (LLC), Lechowicz & Tseng Municipal Consultants is a women-owned firm founded by Alison Lechowicz and Catherine Tseng that focuses on financial planning, rate and fee studies, and management consulting for public agencies. Alison and Catherine have 30 years combined experience in municipal consulting and public finance and have completed over 100 studies compliant with Propositions 218 and

26. We are also a municipal financial advisory firm registered with the Securities Exchange Commission and Municipal Securities Rulemaking Board. We offer a breadth of expertise from financial planning to utility rate design.

We are a small firm that focuses on rate and fee studies for public agencies serving populations of 30,000 or fewer. Our recent experience includes completing similar projects for the Cities of Chowchilla, Kerman, San Fernando, and Waterford and the Templeton Community Services District, among others. These communities are facing similar issues as the City of Gonzales. Templeton CSD, for example, did not have an underlying cost of service analysis to justify its water rate tiers. To comply with Proposition 218 and recent legal rulings, L&T restructured the agency’s tiers to conform with various sources of supply, how the district uses each source throughout the year, and the cost to deliver each source to customers. Amongst other issues, for the City of Wasco (Kern County), we are currently evaluating the sewer rates of a major almond packing facility and an agricultural chemical manufacturer. These customers contribute to intense usage of the system and must be charged fairly to avoid shifting costs to residential customers. We will bring this recent experience to our work for the City of Gonzales.

To provide a comprehensive analysis, L&T will focus on the following:
o Financial Analysis: L&T analyzes revenue streams to meet immediate cash flow needs as well as to plan for future capital projects and deferred maintenance. We will provide the City with a dashboard of financial variables that will clearly illustrate how various considerations such as drought, grant vs. loan funding, high vs. low growth, and high vs. low inflation among others will impact utility cash flows. As a registered municipal financial advisor, we can also conduct detailed reviews of debt obligations and debt capacity. Our final report will provide the City with a financial roadmap that fully documents the cost of service. 909 Marina Village Parkway #135
Alameda CA 94501
(510) 545-3182
LTmuniconsultants.com
Packet Pg. 101 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz o Utility Rate Design: L&T will ensure the City’s rate structure achieves compliance with conservation mandates (SB 606/AB 1668) and Proposition 218 proportionality requirements.

We will ensure that the City’s tiered water rate structure is based on actual costs and appropriately reflects sources of supply. L&T will also review ratepayer equity between existing customers vs. new development as well as industrial customers vs. residential customers. Each customer group should pay its fair share based on how it uses the water and sewer systems.

Existing customers should not subsidize growth and residential customers should not subsidize large food producers.
o Public Outreach: As the City’s last rate study was conducted some time ago, public outreach and education will be critical in gaining public acceptance. We provide value to our clients by taking the lead in data collection, analysis, and outreach. L&T has extensive experience drafting Proposition 218 notices, educating Council members, and explaining the need for rate adjustments. Our approach is to understand any “hot button” issues in local service areas and respect political sensitivities. In particular, we recommend outreach to large industrial customers and developers who may have a high level of engagement with City services. Our final documents will stress the value of the City’s infrastructure, explain why costs are increasing, and describe cost saving measures.

The firm of Lechowicz & Tseng Municipal Consultants and its employees have no personal or professional financial or other interests which could be a conflict of interest.

Our proposal to conduct the utility rate study is attached. As requested, our cost proposal is provided separately. If you have any questions, please contact us.

Sincerely,
Lechowicz & Tseng Municipal Consultants
Alison Lechowicz, Principal and Authorized Representative 909 Marina Village Parkway #135
Alameda, CA 94501
510-545-3182
[email protected]
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Firm Overview................................................................................................................... 1 Who We Are................................................................................................................................................................. 1 Services............................................................................................................................................................................ 2 Project Team Organizational Chart.......................................................................................................................... 3 Recent Experience ........................................................................................................................................................ 3 Technical Approach .......................................................................................................... 4 Scope of Work ................................................................................................................... 7 Project Management..................................................................................................................................................... 7 Scope of Services........................................................................................................................................................... 7 Schedule......................................................................................................................................................................... 13 Meetings......................................................................................................................................................................... 13 Project Team ................................................................................................................... 14 References ........................................................................................................................ 22 Templeton Community Services District.............................................................................................................. 22 Town of Discovery Bay ............................................................................................................................................. 23 City of Chowchilla ...................................................................................................................................................... 24 City of Wasco.............................................................................................................................................................. 25 Disclosures........................................................................................................................ 26 No Conflicts of Interest ............................................................................................................................................ 26 Municipal Securities Rulemaking Board ................................................................................................................. 26

TABLE OF CONTENTS

Packet Pg. 103 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 1 WHO WE ARE

FIRM OVERVIEW
Our objective is to provide financial consulting and management services to local governments. Alison and Catherine have over 30 years combined experience in municipal consulting and public finance.

Catherine has a background in urban planning and worked for the City of Oakland before becoming a consultant. Alison has experience working for a civil engineering firm and a background in public administration. Lechowicz & Tseng is registered with the Municipal Securities Rulemaking Board (MSRB) and Securities and Exchange Commission (SEC) as a municipal financial advisory firm. Alison holds the Series 50 (Municipal Advisor Representative) and Series 54 (Municipal Advisor Principal) qualifications.

Lechowicz & Tseng Municipal Consultants is a women-owned firm founded by Alison Lechowicz and Catherine Tseng.

L&T is committed to providing
professional services with superior
value and responsiveness. By utilizing a
small team approach, our clients
receive greater one-on-one attention
and can be assured that the work is
conducted by highly qualified
professionals. Our clients are provided
direct communication with the
principal consultants who guide the
project through each step.

Nature of firm: Women-owned firm
organized as an LLC serving public
agencies
Services: Utility Rate & Fee Studies,
Financial Planning, Capacity Fee Studies,
Utility Appraisal, Expert Witness, Public
Approval Process
Size of firm: Three staff members
Location of office: Alameda, CA
Registrations: Small Business
Enterprise, Women-owned business,
Municipal advisory firm registered with
the Municipal Securities Rulemaking
Board and the Securities and Exchange
Commission
Other languages spoken by staff:

Spanish
Packet Pg. 104 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 2 SERVICES
Employer Identification Number (EIN): 82-0928239
California Small Business #: 2006322
Municipal Securities Rule Making Board #: K1236
Utility Rate & Fee Studies
Utility rate studies deriving both traditional
and innovative rate structures that comply
with cost of service principles and Proposition
218 requirements. Address policy goals,
customer acceptance, and social influences.

Impact Fee/Capacity
Charge Studies
Development impact fees and capacity charge
studies that offset the cost of expanding
infrastructure to serve new development
without placing a burden on existing
customers.

Financial Planning & Modeling
Comprehensive financial plans focused on
immediate needs as well as the long-term
viability of agencies. Our financial models are
flexible and user-friendly to allow for cash
flow sensitivity analysis and to illustrate the
impacts of policy decisions.

Public Approval Process
Lead informational workshops to educate the
public about municipal finance. We provide
start-to-finish assistance in the rate and fee
approval process, including presentations to
decision makers, publication of reports, and
printing and mailing of notices (as applicable).

Utility Appraisal
Develop an inventory of utility assets and
determine fair market value. We assist public
agencies with negotiating the purchase or sale
of utility property.

Expert Witness
Testify on behalf of public agencies to defend
against lawsuits. We also represent public
agencies as streetlight customers of
California's electric utility providers in rate
cases at the CA Public Utilities Commission.

Packet Pg. 105 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 3 PROJECT TEAM ORGANIZATIONAL CHART

RECENT EXPERIENCE
Provided below is a sampling of L&T’s recent projects for agencies of similar size.

AGENCY

ACCOUNTS

OR PARCELS PROJECT
Nipomo CSD (Blacklake) 559 Blacklake Sewer Rate Study (2018) Blacklake Streetlight Rate Study (2022)
McMullin Area GSA 1,150 Groundwater Fee Study (2018)
City of Rio Dell 1,300 Water and Sewer Rate Study (2022) City of Brisbane 2,000 Water and Sewer Rate Study (ongoing) City of Waterford 2,500 Sewer Rate Study (2019)
Templeton CSD 2,800 Water (4 Tiers) and Sewer Rate Study (2018) City of Tehachapi 3,000 Water and Sewer Connection Fee Study (2020) Parks and Civic Connection Fee Study (2021)
City of Anderson 3,500 Water Rate Study (2021)
City of Kerman 3,800 Water and Sewer Rate Study (2018)
City of Chowchilla 3,900 Utilities Rate Study (2020)
City of San Fernando 5,000 Water and Sewer Rate Study (2019) City of Wasco 5,200 Water and Sewer Rate Study (ongoing) Town of Discovery Bay CSD 6,200 Water and Wastewater Rate Study (2020) Water and Wastewater Capacity Fee Study (2022)
Root Creek Water District 6,800 Multiple studies since 2017 CSD – Community Services District; GSA – Groundwater Sustainability Agency

CATHERINE TSENG
Principal - Peer Review

SOPHIA MILLS
Financial Analyst

ALISON LECHOWICZ
Principal / Main Contact Person
Packet Pg. 106 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 4 Project Overview
L&T’s objective for this rate study is to provide compliance with legal requirements while ensuring that the City’s water and wastewater utilities are self-sufficient. Changes in legislation have resulted in many agencies having to make modifications their rate structures. Stringent regulations and aging infrastructure require increased operating expenses and capital investment. We are proponents of simplicity and respecting the current financial and political climate while phasing-in rate adjustments.

Our study will include a comprehensive review of each utility’s finances, including operating costs, reserve funds, and deferred maintenance and capital funding needs to ensure that the water and sewer rates cover the full cost of providing service. Our analysis will review the cost justification for the current water tiers to ensure that the water rates are sufficient to cover expenses while factoring in the impacts of the pandemic and Statewide drought. We will update the sewage strength loading and customer categories. L&T will evaluate rate structure modifications, assess the financial and other impacts of any changes, including the bill impacts to customers, and recommend adjustments if warranted. Additionally, the study will evaluate and update the other utility service charges and fees.

It is key that our final deliverables are easy for the City to understand and implement. We propose to organize our cash flows based on existing budget categories to allow for the easy import or export of data between documents. L&T also structures our reports with reader-friendly executive summaries to allow the general public to grasp key concepts. Our financial models are designed to provide tables and charts that can be pasted into presentations to give visual representations of our work. L&T will also ensure that the City’s billing system can accommodate proposed rate structure adjustments.

Financial Planning
Our approach to financial planning will be to adjust rates to keep up with inflationary cost increases, ensure funding is available for capital projects, meet debt coverage requirements, and model the impacts of growth. L&T will provide cash flow analyses in an Excel-based model fed by a financial dashboard showing how each of these factors impact the City’s bottom line.

In particular, we will model various growth scenarios and impacts on utility services. Costs of expanding facilities should be covered by impact or connection fees from new development. However, there can be delays between when facilities are constructed and when revenues are collected. Moreover, expanded or improved infrastructure may face more stringent regulations and be more costly to operate. Growth in the City’s service area will also have implications for staffing costs, engineering, depreciation, and property insurance. All of these factors will be incorporated into L&T’s cash flows.

We use industry-standard methodologies recommended by the American Water Works Association and our projects include financial models to predict cash flows and rate impacts. We are comfortable building our own Excel-based models as well as reviewing the work of other consulting firms. For

TECHNICAL APPROACH
Packet Pg. 107 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 5 instance, we recently provided a financial master plan and custom model for the Fresno Irrigation District, which has six inter-linked funds and an annual budget of about $18 million.

Screenshot of a recent financial dashboard created by L&T for a public agency client Registered Municipal Advisor
Lechowicz & Tseng Municipal Consultants is registered with the Municipal Securities Rulemaking Board (MSRB) and the Securities Exchange Commission (SEC). We are able to provide detailed advice regarding the timing and structure of debt and the adequacy of rate revenues to meet debt coverage requirements. As a registered advisor, Principal Alison Lechowicz can provide a detailed comparison of financing options and make recommendations, if appropriate.

Rate Design
Subsequent to the San Juan Capistrano court case, volume rates, tiered pricing, and conservation rates are under increased scrutiny in California. Agencies may no longer adopt usage rates to meet conservation objectives without a supporting cost analysis. At the same time, SB 606 and AB 1668 require water purveyors to gradually reduce indoor, residential water use. L&T will guide the City through compliance with these regulations and can provide options to ensure the City’s water usage tiers meet Proposition 218 proportionality requirements.

Currently, residential and commercial customers are charged for water service according to a fourtiered rate structure. Industrial customers are charged for usage based on a single tier. Our approach is to evaluate current levels of consumption for each customer class and compare with the existing water tiers. Some possible water rate structure modifications may include the addition of a monthly fixed charge, changing the tier breakpoints, reducing the number of tiers, and developing a separate rate for commercial customers. The key to success is demonstrating actual costs attributable to higher levels of use such as higher electricity costs due to peak pumping, upsizing of equipment, conservation compliance or programs, and/or imported water costs.

Packet Pg. 108 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 6 The City’s customer base is unique in that the majority of usage is attributed to several industrial and commercial customers. The goal of the rate design will be to ensure that each customer class pays their proportionate share of their impact on each system. For example, agricultural customers and food manufacturers typically have peak water usage and sewer flows during the late
summer/early fall harvest season which could spike usage of the City’s water and sewer infrastructure. Food manufacturers typically have high BOD but do not necessarily contribute to other wastewater pollutants such as TSS. These customers should pay for their peak flows and pollutant loading such that residential customers are not burdened with these costs.

If modifications to the current rate structure are needed or desired, we will work with the project team to phase in modifications, clearly explain why the changes are needed, and minimize the impact on ratepayers. Additionally, we will take into consideration staff’s time and capabilities to administer any changes and will ensure that the City’s billing system can accommodate proposed rate structure adjustments.

Public Approval
L&T has a breadth of experience with controversial rate, fee, and tax increases. We are equipped to handle many of the administrative tasks such as drafting, printing, and mailing notices, if appropriate.

Alison and Catherine performed similar services for the cities of Anderson, Chowchilla, San Fernando, Waterford, the McMullin Area Groundwater Sustainability Agency, and the Town of Discovery Bay.

We find that when the ratepayers understand the need for the fees and the basis of costs they are more accepting of increases. Outreach is particularly important for smaller public agencies as they have a greater risk of ratepayers garnering a 50% majority protest to deny a rate adjustment. L&T’s strategy is to meet with interested stakeholders early in the assignment to hear concerns and clearly explain the need for fees. The City of Gonzales has several large commercial customers that may be more likely to challenge any rate adjustments as it impacts their bottom line. We highly recommend targeted outreach to these entities to address any critical issues early in the study.

This process has been extremely beneficial in other studies that we’ve completed. As example, Alison conducted Public Works workshops for the Cities of Berkeley and Modesto. She also met with developers regarding rate and fee studies conducted for the Town of Discovery Bay and the Templeton Community Services District. Catherine Tseng worked with the 15-member Water Advisory Committee in the City of Davis. The objective is to demonstrate the value of the City’s services to ratepayers. We will draft public notices, newsletters, and web or social media postings as appropriate.

L&T is happy to lead public presentations.

Packet Pg. 109 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 7 PROJECT MANAGEMENT
Our approach to our work is simple – we roll up our sleeves and get the job done. When initiating a project, it’s impossible to know every twist and turn an assignment may take. Unexpected issues may arise, out of scope tasks may be required, and political sensitivities may become uncovered. L&T strives to be flexible and responsive to our clients. We remain available to take on additional tasks, coordinate between departments, agencies, and contractors, attend evening meetings, make presentations, and provide clerical support such as printing and mailing of public notices. Successful projects consist of both major deliverables and many small administrative tasks. Lechowicz & Tseng maintains high client satisfaction because we take responsibility for all aspects of our assignments.

We have an excellent track record of completing assignments on-time. L&T will be responsible for all project analysis and the preparation of meeting and presentation materials for the project team and Council meetings. L&T strives to be flexible and responsive to our clients. During project initiation, we will finalize the schedule and set deliverables by working backwards from the desired Proposition 218 hearing date. We will provide bi-weekly check-ins and monthly billing summaries to ensure that the project is on schedule and within budget.

SCOPE OF SERVICES
Provided below is our suggested scope of services which elaborates on our project approach and methodology. L&T will work with the City to finalize a scope tailored to meet your needs.

SCOPE OF WORK
Task 1:

Data Gathering
Task 2:

Financial Plan
Task 3:

Cost Allocation
Task 4:

Rate Design
Task 5:

Reports &
Model
Task 6:

Meetings &
Presentations
Task 7:

Prop 218
Assistance
Packet Pg. 110 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 8 Task 1 – Project Kickoff and Data Gathering
Kickoff Meeting
L&T will meet with City staff for a project kickoff meeting to review study goals, milestones, identify project team members, and determine roles and responsibilities.

Data Gathering
Assemble the necessary data to complete the study. The goal is to understand the City’s financial standing, current rate structure, and utility billing information. A data needs list will be provided to City staff prior to the kickoff meeting.

Task 2 – Financial Plan
Annual Revenue Requirements
With staff input, we will estimate future operating and capital expenditures to estimate annual revenue needs. We will factor in projections of growth, repairs and replacements, cost escalation, sewer flows, conservation, regulatory compliance, and operational changes to ensure that all future expenses are included.

Review Reserve Fund Targets
This subtask involves reviewing the current operating and capital reserve balances for each utility and evaluating reserve targets for emergency reserves, rate stability reserves, long term capital reserves, short term capital reserves, or other categories as appropriate. At minimum, our analysis will review the age and condition of the systems, annual depreciation costs, debt service reserves, and expenses related to emergencies.

Evaluate Debt Service Coverage
L&T will review budgets, audits, and bond disclosure documents to understand current debt obligations.

We will determine current coverage ratios based on net operating revenues compared to annual debt service expenses. We will also evaluate if the utilities have capacity to take on additional debt at the current revenues. Our final rate recommendations will include projections to meet coverage requirements in the years to come.

Packet Pg. 111 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 9 Review Capital Improvement Needs
Our cash flow analysis will isolate the impacts of
capital funding separate from increases needed to
fund other utility expenses. Typically, L&T
suggests three capital funding scenarios: 1) bare
bones: fund only critical improvements, 2) priority
funding: fund critical projects plus high-priority,
level of service improvements, and 3) full funding:
fund all proposed projects. We will work with the
agency to determine project affordability and
adjust our rate recommendations accordingly.

L&T will review various financing options to fund
capital needs, including pay-as-you-go/cash funding and other debt financing alternatives, such as State loans/grants, bank loans, and certificates of participation/bonds.

Cash Flow Projections
Annual revenue requirements and capital funding needs will be used to develop long-term cash flow projections summarizing the financial position of the utilities over the next 10 years. The cash flow projections will estimate rate increases needed to meet annual revenue requirements, debt obligations, and reserve fund targets.

Sensitivity Analysis
Based on input from the project team, L&T will incorporate rate sensitivity analysis to determine affordability. We will determine rate impacts under various scenarios, possibly including cash funding of projects, debt funding of projects, water cutbacks, etc. Sensitivity analysis can often become an iterative process. L&T is flexible to run additional scenarios as needed.

Task 3 – Cost Allocation
Evaluate Customer Billing Data
We will evaluate historical and current water consumption, wastewater flow, pollutant loading, and other billing data to estimate future drought and normal year water demands. A key aspect of this task is to determine the amount of water use and revenue collected from meter charges and volume rates.

Functionalize Costs
Functionalization is the allocation of expenses by major operating activities for the utilities, including water supply, peak pumping, treatment, storage, transmission, overhead, and administration. Sewer categories will consist of customer service, flow, BOD, and TSS.

Allocation to Customer Classes
After costs have been categorized by function, costs are then allocated to each customer class based on water demand and sewer flow and loading characteristics. The result produces fixed and variable revenue requirements for each customer class which can be recovered via fixed charges and usage rates.

Packet Pg. 112 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 10 The allocation to customer classes will be based on American Water Works Association best practices and meet the proportionality requirements of Proposition 218.

Tiered Rate Review – If needed
In this subtask, L&T will review tier breakpoints and determine costs that can be assigned to each tier.

Task 4 – Rate Design
Assess Current Rate Structure and
Customer Classifications
Review the current rate structures and
customer classifications to assess the advantages
and disadvantages of the existing systems and to
determine compliance with industry standards
and court rulings. While compliance with
Proposition 218 will guide all our
recommendations, additional criteria may
include: the impact on customer bills, public
understanding, revenue stability, ease of
implementation, compatibility with the existing
billing system, and staff effort needed for
administration.

Rate Alternatives
Based on the criteria developed with staff and the cost of service analysis, we will identify two (2) alternative rate structures or modifications to the current water and sewer rate structures. In particular, L&T will ensure that any tiered rate options are cost-justified and compliant with recent court rulings. We intend to provide a detailed analysis to assess the appropriateness of desired tiers and to ensure compliance with the requirements of Proposition 218. We will determine if usage rates align with projected water sources and costs. It may be prudent to phase-in adjustments over time.

For our sewer recommendations, we will fully document all underlying flow and pollutant estimates used in our analysis. We will outline the advantages and disadvantages of each option. This task includes a legal review of current and proposed rate design alternatives. As needed, we will coordinate with legal counsel. For the final study, we will present rate structure options that both meet the agency’s needs and relevant legal requirements. L&T will compare all our estimates and recommendations with those used by other local entities.

Bill Impacts
Based on the recommended rates, calculate the bill impacts for a sample of typical customers including both residential and industrial. If needed, develop an implementation plan to phase in adjustments.

Survey of Local Rates
We will prepare a survey comparing current
and proposed bills to other local agencies.

The survey will be summarized in tables and
charts that can be used for outreach,
presentations, and the final report. We will
also prepare a bill comparison for different
levels of water use and different customer
classes. The final list of surveyed agencies will
be determined by the City and will include at
least 6 agencies.

Packet Pg. 113 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 11 Finalize Recommendations
Our rate recommendations will include multi-year rate increases and rate design adjustments. The final plan will show projected rates for each customer class for each year.

Review and Update Other Service Charges
Administrative fees for miscellaneous services are subject to Proposition 26 and should be based on the reasonable cost of service. L&T will review the City’s current service charges (including fees for backflow devices, plan reviews, hydrant meters, etc.) and update the charges based on current costs. If warranted, L&T will interview staff to determine staff time and materials needed to provide each service.

We will calculate fully burdened hourly rates, vehicle and equipment expenses (if applicable), and administrative overhead. We can also provide a survey of surrounding agencies to gauge whether the current miscellaneous fees are in line with other utilities. Moreover, L&T will work with the project team to determine whether additional fees and charges are necessary.

Task 5 – Reports & Model
Submit a draft summary report for review and feedback. The report will summarize findings and recommendations and discuss key alternatives when applicable. We will then incorporate all staff comments and update recommendations accordingly. The final report will reflect input received from staff and elected officials. Our reports are intended to serve as the administrative record and will be compliant with Propositions 218 and 26.

L&T will also submit an Excel-based financial model at the conclusion of the study including all rate calculations and a user-friendly data entry dashboard pre-loaded with our financial planning assumptions.

L&T focuses on straightforward reports and models that easily convey information. If planning assumptions change after the assignment is complete, the City will have the underlying information to change course and make adjustments. All study materials including the final Excel-based financial model will be submitted to the agency in their native format (Word, Excel, Powerpoint, etc.). L&T’s materials do not contain any proprietary information or specialized software.

Task 6 – Meetings & Presentations
L&T proposes six (6) in-person meetings and bi-weekly virtual check-in meetings. For the in-person meetings, a sample meeting schedule could include: one (1) kickoff meeting, one (1) meeting for the presentation of the draft rate structure alternatives to City Council, two (2) community outreach workshops, one (1) meeting for the presentation of the final rate study report to City Council, and one (1) meeting for the Proposition 218 hearing.

Packet Pg. 114 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 12 Task 7 – Proposition 218 Procedural Assistance
L&T is available to provide comprehensive Proposition 218 procedural assistance including arranging the printing and mailing of the Proposition 218 notice. We recommend public agencies use the Proposition 218 notice as an outreach opportunity to explain why the rate adjustments are needed and to highlight what has been done to help reduce costs.

We will coordinate and conduct all deliverables associated with compliance with Proposition 218 including: aggregating the ratepayer and property owner mailing lists, drafting the Proposition 218 notice, translating the notice into other languages such as Spanish, printing the notices, and certifying the mailing of the notices. The actual cost of mailing the Proposition 218 notice is a separate charge and will be based on the number of mailers & printing costs.

RATE STUDY DELIVERABLES
o Data request list
o Review of prudent reserves and recommended reserve fund levels o Cash flows with anticipated funding sources and cost recovery o Ten-Year Financial Plan
o Analysis of fixed and variable operating and capital costs o Evaluation of customer characteristics including water use/sewer flow, strength loading, and number of accounts
o Rate design alternatives (at least 2 presented to Council as per RFP) o Final five-year rate projections
o Bill impacts and rate survey of local agencies (at least 6 other cities) o Recommended updates to other utility service charges (Proposition 26 fees) o Draft and final reports
o Financial Model in Excel
o Proposition 218 public notice draft and/or educational materials o Six (6) in-person meetings/presentations with the City o Bi-weekly virtual progress meetings with staff and action items distributed to the project team o Printing and mailing of the Proposition 218 public notice Packet Pg. 115 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 13 SCHEDULE
Provided below is Lechowicz & Tseng’s draft schedule for the rate study. We propose the following schedule with the Proposition 218 hearing in June 2023 and new rates going into effect July 1, 2023. We are happy to adjust the schedule as needed.

V – virtual meeting with staff; 1- 6 – in-person meetings; D – draft report submitted; F – final report submitted

MEETINGS
Provided below is a sample meeting schedule for our proposed in-person meetings that will be updated with input from the project team. In addition to six (6) in-person meetings, our proposal includes biweekly virtual meetings for progress meetings with staff.

Meeting #1 Kickoff meeting with Project Team
Meeting #2 Present draft findings and alternative rate structure options to City Council Meeting #3 Community outreach meeting
Meeting #4 Community outreach meeting
Meeting #5 Present final report to City Council; initiate Proposition 218 process Meeting #6 Proposition 218 Public Hearing to adopt rates

PROJECT TASK

1. Kickoff & Data Gathering

2. Financial Plan

3. Cost Allocation

4. Rate Design

5. Reports & Model D F
6/7. Meetings & Prop 218 1 V V 2 V 3 V 4 V 5 PROP 218 6

NOV DEC JAN FEB MAR APR MAY JUN
Packet Pg. 116 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 14 Alison Lechowicz will serve as the Principal-in-Charge and main contact person. Catherine Tseng will provide peer review. Sophia Mills will serve as financial analyst. No subconsultants are needed for this assignment.

Analyst - Sophia Mills
15 years consulting experience
Master of Public Administration
Testified as an expert witness at the
CA Public Utilities Commission
Series 50 and 54 – Municipal Advisor
Representative and Municipal Advisor
Principal Qualifications
Project Manager
and Lead Analyst
Financing alternatives and
cash flow projection
Rate recommendations
Public presentations
Alison Lechowicz

PRINCIPAL
QUALIFICATIONS Responsibilities
Catherine Tseng

PRINCIPAL
15 years consulting experience
Master of Urban Planning
Bachelor of Architecture
Peer Review
Methodological review
Review of draft and final reports
Substitute for Ms. Lechowicz if
needed
QUALIFICATIONS Responsibilities

PROJECT TEAM
Packet Pg. 117 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 15 Alison Lechowicz

EDUCATION
o Columbia University
Master of Public Administration
o University of California, Berkeley
Bachelor of Science
Conservation & Resource Studies

REPRESENTATIVE ASSIGNMENTS
o 15 years consulting experience: 5 years
Co-founder and Principal at L&T Municipal
Consultants, 7 years as Principal and
Financial Analyst at Bartle Wells
Associates, 3 years as Financial Analyst at
Carollo Engineers
o Testified as an expert witness at the
CA Public Utilities Commission in electric
rate cases of Pacific Gas & Electric,
Southern California Edison, and
San Diego Gas & Electric
o Municipal Securities Rulemaking Board,
Series 50 & 54 – Municipal Advisor
Representative and Municipal Advisor
Principal

EXPERIENCE
[email protected]
909 Marina Village Parkway #135
Alameda, CA 94501
(510) 545-3182
Templeton Community Services District:

Completed a water and sewer rate study.

Conducted an analysis of the District’s four water
sources, determined the marginal cost of each
source, and assigned each source to a water rate
tier. Evaluated the transition of the District from
regional wastewater treatment to local treatment.
____________________________________
Nipomo Community Services District:

Conducted sewer and street light rate studies for
the Blacklake service area. Evaluated interim sewer
rates prior to regionalization of treatment facilities.

Determined lighting costs and options for
converting to LED.
____________________________________
Town of Discovery Bay: Consultant for the
Town for over ten years having conducted multiple
water and sewer rate studies and capacity fee
studies. Assisted the Town in recovering costs for
new wastewater regulatory requirements.
___________________________________
City of Kerman: Completed a water and sewer
rate study for the City. Updated winter water use
estimates for single family residential sewer rates.

Phased-out discounts for multifamily sewer
customers.
____________________________________
Root Creek Water District (Madera County):

Financial plan for the District’s groundwater basin
and agricultural water service. Water, sewer, and
storm drain rates and development fees for
municipal service.
____________________________________
Stege Sanitary District (Contra Costa
County): Sewer rate and connection fee study.

Conducted extensive review of water usage
patterns to determine flow rates of customer
classes. Proposed a 5-year phase-in for a new
multifamily rate.

Packet Pg. 118 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 16 Provided below is a sampling of Alison Lechowicz’s project experience since 2010. Prior to 2010, Ms. Lechowicz worked for a civil engineering firm conducting financial analysis for master plans.

CLIENT PROJECT DATE COMPLETED
City of Alameda Sewer Financial Plan and Rate Study May 2015 City of Anderson Water and Sewer Rate Study February 2021 Town of Apple Valley Water System Acquisition Feasibility Analysis July 2011 City of Berkeley Sanitary Sewer Rate Study June 2015
City of Carmel-by-the-Sea Bond Refinancing October 2010 CA City County Street Light
Association
Rate economist and expert witness March 2010 to present (ongoing)
City of Chowchilla Water, Sewer, Storm Drain, and Solid Waste Rate Study
June 2020
City of Chula Vista
Wastewater Capacity Fee Study
Salt Creek Sewer Basin Impact Fee Study
Depreciation Review
May 2014
June 2015
July 2018
City of Clovis Water User Rates and Fee Study February 2016 City of Colfax Sewer Rate Affordability Review June 2010 City of Colusa Development Impact Fee Study
Water System Valuation
June 2011
September 2014
Contra Costa Water District Water Rate Study February 2015 City of Cotati Water and Sewer Rate Study February 2013 Town of Discovery Bay Water and Sewer Rate and Capacity Fee Studies Multiple studies since 2012 City of Emeryville Sewer Rate Study November 2016
Fresno Irrigation District Financial Master Plan Ongoing City of Hemet
Water and Sewer Rate Studies and System
Valuations
Water Fund Rental Fee Analysis
July 2015
August 2018
Home Gardens Sanitary
District
Sewer Rate and Capacity Fee Study May 2015
Indian Wells Valley Water
District Bond Refinancing December 2012
City of Kerman Water and Sewer Rate Study October 2018
City of Kingsburg Solid Waste Rate Study Ongoing
Kings River E. GSA Groundwater Fee Study February 2018
City of Lancaster Streetlight Valuation June 2014
Packet Pg. 119 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 17 CLIENT PROJECT
DATE

COMPLETED
Napa Berryessa Resort
Improvement District Water and Sewer Assessment July 2012 Newhall County Water District Water Rate Litigation Support November 2012 Nipomo CSD Blacklake Sewer Rate Study
Blacklake Streetlight Rate Study
January 2019
March 2022
Novato Sanitary District Capacity Fee Study
Sewer Rate Study
March 2016
April 2016
City of Palmdale Sewer Service Charge Analysis May 2011 City of Rio Dell Wastewater Rate Study
Water and Sewer Rate Study
May 2014
April 2022
Root Creek Water District Water, Sewer, and Storm Drain Rate Study and Financial Plan
On-call consulting services
April 2016
Ongoing
San Diego County Water
Authority
Cost Allocation Review May 2011
City of San Fernando Water and Sewer Rate Study December 2019 San Joaquin County Utility Appraisal
Utility Appraisal Update
November 2018
January 2022
City of Santa Clarita Sewer Maintenance Feasibility Study June 2014 Saticoy Sanitary District Bank Loan Financing September 2013 South Tahoe Public Utility
District
Sewer Bond Refunding September 2012
Stege Sanitary District Multiple sewer rate and connection fee studies Multiple studies since 2010 Sunnyslope County Water
District
Water and Sewer Bond Refinancing October 2014
Tahoe Truckee Sanitation
Agency
Sewer Fee Ordinance Review May 2010
City of Tehachapi Water and Sewer Connection Fee Study
Parks and Civic Impact Fee Study
February 2020
March 2021
Templeton CSD Water and Sewer Rates and Capacity Fee Study Parks and Fire Impact Fees
November 2018
Triunfo Sanitation District Water Infrastructure Financing Automated Meter Financing
February 2011
May 2014
Tulare Lake Drainage District Project Financing
Project Financing
March 2012
January 2013
City of Wasco Water and Sewer Rate Study Ongoing
City of Waterford Sewer Rate Study June 2019
Packet Pg. 120 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 18 Catherine Tseng

EDUCATION
o Columbia University
Master of Urban Planning
o University of California, Berkeley
Bachelor of Arts
Architecture

REPRESENTATIVE ASSIGNMENTS
o 5 years Co-founder and Principal at L&T
Municipal Consultants
o 10 years prior consulting experience:

Vice President at Bartle Wells Associates
o 2 years civil servant: City of Oakland
o Specializes in utility rates, capacity charge,
and financing plans for public works
projects, and Proposition 218 compliance

EXPERIENCE
catherine@
LTmuniconsultants.com
(510) 858-9228
909 Marina Village Parkway #135
Alameda, CA 94501
City of Chowchilla: Completed a water, sewer,
storm drain, and solid waste rate study. Rates will
support the City’s recent bond issuances and
overcome prior deficit spending for the solid waste
enterprise.
_____________________________________
City of San Fernando: Water and sewer financial
plan and rate study and Proposition 218 printing and
mailing. Offered rate options to meet affordability
criteria including funding of only high priority
projects.
____________________________________
City of Anderson: Completed a water rate study
to address depleting reserves. Analyzed multiple
rate scenarios to minimize impacts to customers.
____________________________________
City of Brisbane: Currently conducting a water
and sewer rate study. The City last updated rates in
2013 but has not done a comprehensive cost of
service analysis since 2001. The 2021 update will
also evaluate rates for a new development area that
will double the City’s service area.
____________________________________
City of Rio Dell: Conducted a water and sewer
rate study to fund mandated capital projects and
eliminate operating deficit.
____________________________________
City of Davis: Water financial plan and rate study
assessing various conservation-oriented water rate
structures and developed drought surcharge.

Worked closely with citizens’ advisory committee
to develop recommendations to City Council.

Packet Pg. 121 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 19 Provided below is a sampling of Catherine Tseng’s project experience since 2006.

CLIENT PROJECT DATE COMPLETED
Alameda County Water
District Water Development Fee Study January 2012
City of Anderson Water and Sewer Rate Study February 2021 Armona Community Services
District Water and Sewer Rate Study March 2008
City of Benicia
Raw Water Rate Study and Update
Water Rate and Connection Fee Study and Update
Drought Rate Study
August 2013 and Sept 2015
February 2013
September 2014
Big Bear City Community
Services District Water, Sewer, and Solid Waste Rate Study May 2015 City of Brisbane Water and Sewer Rate Study Ongoing
City of Chowchilla Water, Sewer, Storm Drain, and Solid Waste Rate Study June 2020
Coastside County Water
District
Water Financing Plan
Water Rate Study
August 2009
January 2010
Crestline Sanitation District Wastewater Rate Study June 2015 City of Davis Water Rate Study
Water Rate Study Update
March 2013
September 2014
Diablo Water District Water Bond Financing
Bond Refinancing
August 2010
April 2013
El Dorado Irrigation District Development Impact Fee Study Water Rate Study
October 2008
January 2009
Elk Grove Water District Water Financial Plan and Rate Study December 2007 Fairbanks North Star Borough Bond Refinancing November 2011 and September 2013
Fresno Irrigation District Financial Master Plan Ongoing City of Glendale Water Rate Study May 2015
Town of Hillsborough Water and Sewer Rate Study December 2006 City of Hanford Water Financing December 2007
Humboldt Bay Municipal
Water District Water Financial Plan April 2011
Indian Wells Valley Water
District
Water Rate Study
Bond Financing
Water Rate Cost of Service and Development
Impact Fee Study
January 2007
August 2009
January 2012 and 2015
Packet Pg. 122 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 20 CLIENT PROJECT DATE COMPLETED
City of Menlo Park Water Rate Study
Recycled Water Analysis
May 2015
October 2015
Montara Water & Sanitary
District Water and Sewer Rate Studies Multiple studies since 2006 Montecito Water District Drought Rate Study February 2015 Novato Sanitary District Bond Financing October 2011
Olivehurst Public Utilities
District Water Rate Study and Updates 2007, 2009 and 2014 City of Patterson Water and Sewer Rate and Capacity Fee Studies Multiple studies since 2010 City of Rio Dell Water and Sewer Rate Study April 2022
Root Creek Water District Financial Policy Manual July 2017 Running Springs Water District Water, Sewer, Fire and Ambulance Rate Studies July 2010 City of San Bruno Water and Sewer Rate Study April 2012 City of San Fernando Water and Sewer Rate Study December 2019 Sanitary District No. 5 -
Tiburon Financial Review September 2013
Sausalito-Marin City Sanitary
District Wastewater Facilities Financing Plan May 2016
Selma Kingsburg Fowler
Sanitation District Capital Improvements Program Study March 2008 Solano County Water Agency Reserve Fund Study May 2007
Sonoma County Water Agency Sewer Service Charge and Volumetric Sewer Rate Study August 2012
City of Tulare Bond Financing 2010, 2012, 2013, and 2015 Union Sanitary District Sewer Capacity Fee Study October 2010 City of Vacaville Water and Drought Rate Study October 2015 Town of Yountville Water and Sewer Rate Study
Recycled Water Rate Study
February 2011
April 2012
Packet Pg. 123 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz 21 Sophia Mills

EDUCATION
o Davidson College
Bachelor of Arts
Economics, Spanish

REPRESENTATIVE ASSIGNMENTS
Town of Discovery Bay CSD: Water and sewer
rate study. Assisted the Town in rate updates to
accommodate new wastewater regulatory
requirements and capital project funding. Also
completed a water and sewer capacity fee study.
____________________________________
City of Anderson: Completed a water rate study
to address depleting reserves. Analyzed multiple
rate scenarios to minimize impacts to customers.
_____________________________________
City of Rio Dell: Conducted a water and sewer
rate study to fund mandated capital projects and
eliminate operating deficit. Analyzed impacts of alternative rate structures for each utility. ____________________________________
City of Tehachapi: Recently completed a parks
and recreation development impact fee study as well
as a civic impact fee study based on a 20-year
planning horizon.
____________________________________
City of Brisbane: Currently conducting a water
and sewer rate study. The City last updated rates in
2013 but has not done a comprehensive cost of
service analysis since 2001. The 2022 update will
also evaluate rates for a new development area that
will double the City’s service area.
____________________________________
sophia@
LTmuniconsultants.com
909 Marina Village Parkway #135
Alameda, CA 94501
(510) 529-8056
o Fluent in Spanish
o Proficient in Python 2.7, SAS (statistical
analysis software), ArcGIS, HTML, and
CSS

OTHER SKILLS
Packet Pg. 124 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz Consulting Services Agreement between November 21, 2022 City of Gonzales and Lechowicz & Tseng - Exhibit B Page 1 of 1 1168358

EXHIBIT B

RATE SCHEDULE
Packet Pg. 125 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz

NOT TO EXCEED FEE
The following table outlines Lechowicz & Tseng Municipal Consultants’ proposed budget by task. Our not-to-exceed Fee Estimate includes six (6) in-person meetings and bi-weekly virtual check-in meetings as requested by the City. The fee can be reduced by $1,200 per meeting that is conducted virtually instead of in-person. We remain flexible to refine our scope and price proposal to meet the City’s needs.
* The budget includes the estimated cost to print and mail the Proposition 218 notices based on our experience with other public agencies of similar size. Direct expenses can vary based on the specifications for the Proposition 218 notices such as black and white or color, number of pages, envelope or postcard configuration, English only or English and Spanish translations, etc. Printing costs are billed at cost (no markup) plus L&T staff time to manage the process.

BILLING RATE SCHEDULE 2022/2023
Lechowicz & Tseng’s hourly rate is $195 for principals and $120 for staff analysts. No subconsultants are needed for this assignment. Professional time rates include all overhead and indirect costs. Direct expenses incurred on behalf of the client will be billed at cost. Direct expenses include, but are not limited to:
o Travel, meals, lodging o Automobile mileage
o Printing and report binding o Courier services and mailing costs o Outside computer services or software
development
o Special legal services
Lechowicz Tseng Mills
Project Mgr Peer Review Financial Analyst
$195/hour $195/hour $120/hour

1. Kickoff & Data Gathering 8 0 12 20 $3,000

2. Financial Plan 36 4 20 60 $10,200

3. Cost Allocation 18 0 16 34 $5,430

4. Rate Design 32 4 24 60 $9,900

5. Reports & Model 28 6 34 68 $10,710

6. Meetings & Presentations 30 6 18 54 $1,800 $10,980
Subtotal 152 20 124 296 $1,800 $50,220

7. Proposition 218 Assistance* 6 0 10 16 $7,000 $9,370
TOTAL PROJECT BUDGET 158 20 134 312 $8,800 $59,590

PROJECT TASKS
HOURS
BUDGET
Total
DIRECT

EXPENSES

FEE ESTIMATE
Lechowicz & Tseng Municipal Consultants
(510) 545-3182
LTmuniconsultants.com
Packet Pg. 126 Attachment: Master Service Agreement (2578 : Resolution No. 2022-80 Authorizing Execution of a Master Services Agreement with Lechowicz