AGENDA
GROVER BEACH CITY COUNCIL
GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET
GROVER BEACH, CALIFORNIA
MONDAY, NOVEMBER 13, 2023, 6:00 PM
Next Resolution No .23-34
Next Ordinance No. 23-04
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, please contact the City Clerk's Office (805-473-4567) at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to the meeting.
CALL TO ORDER
CALL TO ORDER
FLAG SALUTE
ROLL CALL Council Members Daniel Rushing, Clint Weirick, Zach Zimmerman, Mayor Pro Tem Robert Robert, and Mayor Karen Bright
CLOSED SESSION ANNOUNCEMENTS
None
AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of the day. The Council should by motion adopt the agenda as presented or as revised.
CEREMONIAL CALENDAR
1. Proclamation for National Hospice and Palliative Care Month
2. Proclamation for National Apprenticeship Month
3. Proclamation for Family Court Awareness Month
Meetings can be viewed on Channel 20 and are live streamed on the City’s website via www.slospan.org. Members of the public who cannot attend the meeting in person may provide public comment during the meeting by calling (805) 321-6639 to provide public comment via phone (the phone line will open just prior to the start of the meeting at 6:00 PM) or written public comments can be submitted via email to [email protected] prior to the Council meeting. If submitting written comments in advance of the meeting, please note the agenda item.
Agenda: Grover Beach City Council Meeting Page 2
Monday, November 13, 2023
PRESENTATIONS
4. Introduction of New City Employees: Larry Kim – Community Services Supervisor; Alejandro (Alex) Castillo - Maintenance Worker I, Jose Chavez - Maintenance Worker I, Eric Green – Maintenance Worker I; Raul Vargas – Maintenance Worker I; Trenten Howell – Police Trainee; Raul Chavez-Garcia – Police Officer; Isabella Martinez – Police Officer
PUBLIC COMMUNICATIONS
During this time, the Council will allow up to 15 minutes for Public Communication with additional communication, if necessary, allowed after the Regular Business Items. Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda.
CONSENT AGENDA
The following routine items listed below are scheduled for consideration as a group. Recommendations for each item are noted in parentheses. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Items withdrawn from the Consent Agenda will be heard after the rest of the Consent Agenda is approved.
5. Treasurer’s Report for the Period October 1, through October 31, 2023 – Finance Manager Zarate
(Recommended Action: Approve the Treasurer’s Report as submitted.)
VOICE VOTE
6. Treasurer’s Report for the 2022 Streets Bond Account - $10,000,000 for the Period October 1, through October 31, 2023 – Finance Manager Zarate (Recommended Action: Approve the Treasurer’s Report as submitted.)
VOICE VOTE
7. Minutes of the City Council Meeting on Monday, October 23, 2023 – City Clerk Sims (Recommended Action: Approve the minutes as submitted or revised.)
VOICE VOTE
8. FY 2023-24 First Quarter Financial Review – Finance Manager Zarate (Recommended Action: Receive and file the FY 2023-24 First Quarter Financial Review.)
VOICE VOTE
9. Appointment to the Parks, Recreation, and Beautification Commission – City Clerk Sims
(Recommended Action: Confirm and approve Mayor Bright’s recommendation and adopt the Resolution to appoint LaShawnda Scaccianoce to fill the vacated four-year seat which will expire on May 31, 2027. Upon adoption of the Resolution, it is further recommended that Parks, Recreation, and Beautification Commissioner Scaccianoce be introduced to the City Council and members of the audience.)
ROLL CALL VOTE
Agenda: Grover Beach City Council Meeting Page 3
Monday, November 13, 2023
10. Award of Professional Services Agreement for Citywide Landscape Maintenance – Interim Public Works Director/City Engineer Kahn and CIP Manager Wiggin (Recommended Action: Award a Professional Services Agreement to Allweather Landscape for Citywide Landscape Maintenance services for an annual cost of $93,693 and authorize the Mayor to execute the agreement on behalf of the City.)
ROLL CALL VOTE
11. Award of Consulting Services Agreement for the Water Reservoir Tank Rehabilitation Design (CIP 4391) – CIP Manager Wiggin and Assistant Engineer Garcia (Recommended Action: Approve a Consulting Services Agreement with MKN Engineers for $103,153 for the Water Reservoir Tank Rehabilitation Design Project (CIP 4391); authorize the Mayor to execute the agreement on behalf of the City; and authorize the City Manager to approve change orders up to $30,000.)
ROLL CALL VOTE
12. Resolution to Authorize Acquisition of Six New Police Patrol Vehicles and Equipment – Police Chief Peters and Commander Munro
(Recommended Action: Adopt the Resolution authorizing the City Manager to enter into a five-year lease agreement with Government Capital Corporation to finance the purchase of six new patrol vehicles and emergency equipment.)
ROLL CALL VOTE
PUBLIC HEARING
Cancelled
REGULAR BUSINESS
13. Five Cities Fire Authority Policy and Operational Update – City Manager Bronson (Recommended Action: Receive an update on Five Cities Fire Authority policy and operational items in FY 2023-24 and provide input and comments to Council representatives and staff.)
14. 2024 City Council Assignments to Boards, Commissions and Committees – City Manager Bronson
(Recommended Action: Adopt the Resolution confirming certain Council assignments and authorize the City Clerk to update FPPC Form 806 for posting on the City’s website.)
ROLL CALL VOTE
PUBLIC COMMUNICATIONS
Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda.
COUNCIL COMMITTEE REPORTS
This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating.
Air Pollution Control District (APCD) Karen Bright (Alt: Robert Robert) Central Coast Blue Regional Recycled Water Authority Karen Bright (Alt: Daniel Rushing) (CCBRRWA)
South SLO County Sanitation District (SSLOCSD) Karen Bright (Alt: Clint Weirick) Agenda: Grover Beach City Council Meeting Page 4
Monday, November 13, 2023
Integrated Waste Management Authority (IWMA) Robert Robert (Alt: Daniel Rushing) Five Cities Fire Joint Powers Authority Daniel Rushing (Alt: Clint Weirick) SLO Council of Governments / SLO Regional Transit Authority Daniel Rushing (Alt: Karen Bright) (SLOCOG / SLORTA)
South County Transit Committee Daniel Rushing (Alt: Karen Bright) Zone Three Advisory Committee Daniel Rushing (Alt: Karen Bright) Homeless Services Oversight Council (HSOC) Clint Weirick (Alt: Zach Zimmerman) SLO County Water Resources Advisory Committee (WRAC) Clint Weirick (Alt: Robert Robert) REACH Zach Zimmerman (Alt: Robert Robert)
South County Chambers of Commerce Zach Zimmerman (Alt: Daniel Rushing) Visit SLO CAL Advisory Committee Zach Zimmerman (Alt: Robert Robert)
COUNCIL COMMUNICATIONS
This item gives individual Council Members the opportunity to seek consensus for scheduling a specific item on a future agenda, authorizing staff time to provide background information and prepare a staff report for a future agenda, or to comment on Council business, City operations, projects or other items of community interest.
CITY MANAGER’S REPORTS AND COMMENTS
CITY ATTORNEY’S REPORTS AND COMMENTS
CLOSED SESSION
It is the intention of the City Council to meet in Closed Session concerning the following item:
ADJOURNMENT
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Per Resolution No. 17-21, the public portion of City Council meetings will be scheduled to start at 6:00 p.m. and conclude no later than 11:00 p.m. Any open session items remaining on the agenda at 11:00 p.m. that have not been discussed or considered by the City Council will be continued to an adjourned meeting of the City Council (scheduled before the next regular meeting). However, the City Council may choose to continue the meeting past 11:00 p.m. upon a proper motion and a 4/5ths vote in favor of such an action. * * * * *
Staff reports or other written materials relating to each item of business referred to on this agenda are available from the City website www.groverbeach.org and on file in the City Clerk’s Office. A public counter copy is available for public inspection and reproduction during normal business hours at City Hall, 154 South 8th Street, Grover Beach, CA. Related materials submitted after distribution of the agenda packet are available in the City Clerk's Office during normal business hours. If you have questions regarding any agenda item, please contact the appropriate City Department. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council and distributed subsequent to distribution of the agenda packet will be made available for public inspection in the City Clerk’s Office during normal business hours.
* * * * *
Note: This agenda was prepared and posted pursuant to Government Code Section 54954.2. This agenda is subject to amendment up to 72 hours prior to the date and time set for the meeting. Please refer to the Agenda: Grover Beach City Council Meeting Page 5
Monday, November 13, 2023
agenda posted at City Hall for any revisions or call the City Clerk’s Office at (805) 473-4567 for more information.
* * * * *
The agenda and staff reports are also available on the City’s website: www.groverbeach.org
CITY OF GROVER BEACH
POLICIES AND PROCEDURES FOR CONDUCT AND DECORUM AT COUNCIL MEETINGS (Pursuant to Resolution No. 07-44, adopted 04-16-07, revised 02-18-2020) The City Council and staff welcomes and encourages civic participation and debate on issues. The Council values the public’s opinion and in every Council meeting invite and encourages the public to address the Council on any matter of interest. The Council adopted these policies and procedures for appropriate conduct and decorum at Council meetings and establish guidance for public participation during Council meetings.
These policies will foster and provide greater clarity to preserve the intent of open government and maintain a positive environment for public input and City Council decision-making.
1.0 DECORUM AND ORDER – IN GENERAL
1.1 The presiding officer is responsible for the maintenance of order and decorum at all times.
1.2 The presiding officer shall determine all points of order subject to the right of any Council member to appeal to the City Council by majority vote. If any appeal is taken, the question shall be “Shall the decision of the presiding officer be sustained” in which event a majority vote of the Council shall govern and conclusively determine such question of order.
1.3 All Council members, staff members and members of the public should speak respectfully and avoid the use of profanity, vulgarity and slanderous comments. Recognizing that the First Amendment precludes the City Council form prohibiting speakers from speaking based upon the content of their speech, the presiding officer shall use their best efforts, short of enforcement action, to remind and encourage all participating in the meeting to keep their speech respectful towards others and within bounds appropriate for children and persons of sensitivity toward course language as a courtesy to others present or otherwise viewing Council meetings.
2.0 DECORUM AND ORDER – COUNCIL MEMBERS
2.1 Manner of Speaking.
Any Council member desiring to speak shall first address the presiding officer. Upon recognition by the presiding officer, the Council member shall speak only to the question under debate.
U2.1(a) Questioning Staff.
A Council member desiring to question the staff should address his question to the City Manager, or, in appropriate cases, the City Clerk or City Attorney, who shall be entitled either to answer the inquiry or to designate some staff member for that purpose. Such a designation may be made at the time of any staff presentation or on the agenda listing for the item.
U2.1(b) Interruptions.
Once recognized, a Council member shall not be interrupted while speaking unless called to order by the presiding officer; unless a point of order is raised by another Council member, or unless the speaker chooses to yield to questions from another Council member.
3.0 DECORUM AND ORDER – STAFF
3.1 City Manager Responsibilities
The City Manager is responsible for ensuring that members of the administrative staff observe the rules of decorum and order set forth in this Policy.
3.2 AAddressing the City Council
Any administrative staff member desiring to address the City Council or members of the public shall first be recognized by the presiding officer. All remarks shall be addressed to the presiding officer and not to any individual Council Member or member of the public. Administrative staff members shall accord the utmost courtesy to the City Council, other administrative staff members and the public.
4.0 DECORUM AND ORDER – MEMBERS OF THE PUBLIC
4.1 AAddressing the City Council
Any member of the public desiring to address the City Council or members of the public shall first be recognized by the presiding officer at the appropriate place on the agenda. All remarks shall be addressed to the presiding officer and not to any individual Council Member, City Manager, City Attorney or member of the administrative staff or member of the public.
4.2 Time Limitation for Addressing the City Council
Public comment when addressing the City Council shall be generally limited to three (3) minutes per speaker. Depending on the extent of the agenda and the number of persons desiring to speak on an issue, the presiding officer may, at the beginning of the hearing, set a different time limit for each speaker. Any person may speak for a longer period of time upon approval from the presiding officer, when deemed necessary, for instance when a person is speaking on behalf of a group or has a graphic or slide presentation requiring more time.
4.3 Failure to Yield, Disruptions
Any person who refuses to relinquish the floor after their allotted time or while attending the City Council meeting engages in conduct or speech which disrupts the business of the meeting shall be brought to order and/or removed from the room if the sergeant-at-arms is so directed by the presiding officer.
Disruptive remarks from the audience, stamping of feet, clapping, whistles, yells and similar demonstrations shall not be permitted by the presiding officer who may direct the sergeant-at-arms to remove such offenders from the room.
4.4 Prosecution
Aggravated cases shall be prosecuted on appropriate complaint signed by the presiding officer.
5.0 ENFORCEMENT OF DECORUM
5.1 The Chief of Police or his designee shall be the ex-officio sergeant-at-arms of the City Council. The sergeant-at-arms shall carry out all legal and valid orders and instructions given by the presiding officer for the purpose of maintaining order and decorum in the Council Chamber. Upon instructions from the presiding officer, it shall be the duty of the sergeant-at-arms to remove any disorderly person from the Council Chambers or place the disorderly person under arrest or both.
5.2 As set forth in Government Code Section 54957.9, in the event that any meeting is willfully interrupted by a person or group of persons so as to render the orderly conduct of such meeting unfeasible or impedes the ability of the Council to hold the meeting, and order cannot be restored by the removal of individuals who are willfully interrupting the meeting, the presiding officer may order the meeting room cleared and continue in session. Only matters appearing on the agenda may be considered in such a session. Duly accredited representatives of the press or other news media, except those participating in the disturbance, shall be allowed to attend any session held pursuant to this Section. Nothing in this Section shall prohibit the City Council from establishing a procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the meeting.
PROCLAMATION OF THE GROVER BEACH CITY COUNCIL
“NATIONAL HOSPICE AND PALLIATIVE CARE MONTH
NOVEMBER 2023”
WHEREAS, hospice and palliative care empower people facing a serious or life-limiting illness to live as fully as possible, ensuring people dignity, choice, and quality of life; and WHEREAS, the hospice model involves an interdisciplinary, team-oriented approach to treatment, including expert medical care, quality symptom control, and comprehensive pain management as a foundation of care; and
WHEREAS, beyond providing physical treatment, hospice attends to the patient’s emotional, spiritual and family needs, and provides family services like respite care and bereavement counseling; and
WHEREAS, in an increasingly fragmented and broken health care system, hospice is one of the few sectors that demonstrates how health care can – and should – work at its best for its patient; and
WHEREAS, a growing body of peer-reviewed research indicates that timely access to hospice and palliative care can decrease hospitalizations and Emergency Room visits and increase quality of life for patients and family caregivers; and
WHEREAS, every year more than 1.56 million Americans living with life-limiting illness, and their families, received care from the nation’s hospice programs in communities throughout the United States; and
WHEREAS, hospice and palliative care organizations are advocates and educators about advance care planning that help individuals make decisions about the care they want; and WHEREAS, Hospice of San Luis Obispo County, Central Coast Hospice, Dignity Health Hospice, and Wilshire Hospice provide hospice care and bereavement counseling respectively to individuals within the County of San Luis Obispo.
NOW, THEREFORE, BE IT RESOLVED that the Grover Beach City Council does herby officially proclaim November 2023, as ”National Hospice and Palliative Care Month” and encourages citizens to increase their understanding and awareness of care at the end of life and to observe this month with appropriate activities and programs.
IN WITNESS THEREOF, I have hereunto set my hand and caused the Seal of the City of Grover Beach to be affixed this 13th day of November, 2023.
Karen Bright, Mayor
Wendi Sims, City Clerk
Agenda Item No. 1
PROCLAMATION OF THE GROVER BEACH CITY COUNCIL
DECLARING NOVEMBER 13TH to 19TH, 2023 as
”NATIONAL APPRENTICESHIP WEEK”
WHEREAS, the Workforce Development Board of San Luis Obispo County and the construction trades unions in San Luis Obispo County Including the International Brotherhood of Electrical Workers Local 639 & Pipe Trades UA Local 403 have partnered to expand apprenticeship opportunities and head of household jobs in the construction trades in San Luis Obispo County; and
WHEREAS, the advancement and well-being of Grover Beach, San Luis Obispo County, State of California and United States of America depends upon the continued development of a skilled and trained workforce in the building & construction trades; and WHEREAS, an ever growing number of job creators and career seekers are discovering the benefits of apprenticeship’s unique learn-while-you-earn model; and WHEREAS, the City of Grover Beach recognizes that robust apprenticeship programs provide tangible value to both job creators and apprentices, with the potential to increase productivity, improve diversity and inclusion, and reduce recruitment and training costs while providing a pathway to prosperous careers for job seekers; and WHEREAS, National Apprenticeship Week which is celebrating its 9th anniversary of raising awareness of the vital role apprenticeships provide in creating a qualified and highlyskilled workforce in the building & construction trades in the City of Grover Beach, the County of San Luis Obispo and across the nation; and
NOW, THEREFORE, BE IT RESOLVED that the Grover Beach City Council does herby recognize National Apprenticeship Week from November 13th to 19th, 2023 in the City of Grover Beach.
IN WITNESS THEREOF, I have hereunto set my hand and caused the Seal of the City of Grover Beach to be affixed this 13th day of November 2023.
Karen Bright, Mayor
Attest:
Wendi Sims, City Clerk
Agenda Item No. 2
PROCLAMATION OF THE GROVER BEACH CITY COUNCIL
DECLARING NOVEMBER as
”FAMILY COURT AWARENESS MONTH COMMITTEE”
WHEREAS, the mission of the Family Court Awareness Month Committee (FCAMC) is to increase awareness on the importance of a family court system that prioritizes child safety and acts in the best interest of children; and
WHEREAS, the mission at the FCAMC is fueled by the desire to create awareness and change in the family court system for the conservatively estimated, 58,000 children a year ordered into unsupervised contact with abusive parents, while honoring the hundreds of children who have been reported as murdered during visitation with a dangerous parent; and WHEREAS, the mission of the FCAMC is to increase awareness on the importance of empirically-based education and training on domestic violence and child abuse, including emotional, psychological, physical, and sexual abuse, as well as childhood trauma, coercive control, and post separation abuse for judges and all professionals working on cases within the family court system; and
WHEREAS, the mission of the FCAMC is to increase awareness on the importance of using scientifically valid, evidence-based, treatment programs and services that are proven in terms of safety, effectiveness, and therapeutic value; and WHEREAS, the mission at the FCAMC is to educate judges and other family court professionals on evidence-based, peer-reviewed research. Such research is a critical component to making decisions that are truly in the best interest of children. This research includes The Adverse Childhood Experiences (ACEs) Study (co-principal investigator: Vincent Felitti, Kaiser Permanente-CDC); Child Custody Evaluators’ Beliefs About Domestic Abuse Allegations (principal investigator: Daniel Saunders, University of Michigan, sponsored by the National Institute of Justice); and Child Custody Outcomes in Cases Involving Parental Alienation and Abuse Allegations (principal investigator: Joan S. Meier, GW Law School, sponsored by the National Institute of Justice); and
NOW, THEREFORE, BE IT RESOLVED that the Grover Beach City Council does herby proclaims November 2023, as “Family Court Awareness Month Committee.” IN WITNESS THEREOF, I have hereunto set my hand and caused the Seal of the City of Grover Beach to be affixed this 13th day of November 2023.
Karen Brigth, Mayor
Attest:
Wendi Sims, City Clerk
Agenda Item No. 3
Agenda Item No. 4
Intro of New City Employees
(CC Mtg 11/09/2023)
No Documentation for this Agenda Item –
Agenda Item No. 5
Number
74512
74513
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74522
74523
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74526
74527
74528
Number
Payable # Payable Type Payable Date Payable Description Payable Amount 10/26/2023 11:19:50 AM
Check Register Packet: APPKT00042-AP Check Run 10-26-23 Vendor Number Vendor Name Payment Date Payment Type Payment Amount 00149 CALIFORNIA DEPARTMENT OF CORRECTIONS AND REHABILIT 10/26/2023 Regular 5866.9 INV0000063 Invoice 10/03/2023 CDC INMATE CREW CLEANUP 08/23/2023 2927.21 00130 BURKE AND PACE OF ARROYO GRANDE INC 10/26/2023 Regular 105.24 INV0000060 Invoice 10/17/2023 SUPPLIES FOR RAMONA PARK 105.24 04580 BRENNTAG PACIFIC INC. 10/26/2023 Regular 3891.84
INV0000062 Invoice 10/17/2023 BULK AQUAPURE 235 GALLONS 3891.84 02719 BLUE SHIELD OF CA LIFE & HEALTH MEDICAL EYE SERVIC 10/26/2023 Regular 692.83 INV0000146 Invoice 10/25/2023 Nov 2023 Employee insurance premiums 692.83 07316 Big Brand Tire & Service 10/26/2023 Regular 127.95 INV0000020 Invoice 10/05/2023 TIRE RECYCLING 127.95
05420 AT&T 10/26/2023 Regular 2068.68
INV0000149 Invoice 10/25/2023 City Hall Telephones 9/25/23-10/24/23 2068.68 00343 AT&T 10/26/2023 Regular 125.72
INV0000139 Invoice 10/24/2023 Monthly Water Alarm Circuits 10/7/23-11/6/23 125.72 07447 ARROYO GRANDE CHEVROLET 10/26/2023 Regular 55.5
INV0000055 Invoice 10/23/2023 Unit 206 Switch 55.5
INV0000043 Invoice 09/25/2023 UNIFORM SERVICES 09/25/2023 185.25 **Void** 10/26/2023 Regular 0
INV0000041 Invoice 09/11/2023 UNIFORM SERVICES 09/11/2023 177.64 INV0000042 Invoice 09/18/2023 UNIFORM SERVICES 09/18/2023 211.75 INV0000039 Invoice 08/28/2023 UNIFORM SERVICES 08/28/2023 180.78 INV0000040 Invoice 09/04/2023 UNIFORM SERVICES 09/04/2023 177.64 INV0000037 Invoice 08/14/2023 UNIFORM SERVICES 08/14/2023 230.78 INV0000038 Invoice 08/21/2023 UNIFORM SERVICES 08/21/2023 217.82 05423 ARAMARK UNIFORM SERVICES AUS WEST LOCKBOX 10/26/2023 Regular 1560.47 INV0000036 Invoice 08/07/2023 UNIFORM SERVICES 08/07/2023 178.81 INV0000018 Invoice 08/15/2023 3" OMNI H2 HYDRANT METER 2107.73 INV0000019 Invoice 10/04/2023 40 3/4" METERS 11493.95
INV0000051 Invoice 10/23/2023 Service call - Chief Peters, on/around 9/28 175 05820 AQUA-METRIC SALES CO. 10/26/2023 Regular 13601.68 INV0000049 Invoice 10/17/2023 ROOT DAMAGE REPAIRS ON OAK PARK BLVD. 24542.6 08918 Applied Technology Group, Inc. 10/26/2023 Regular 175 INV0000047 Invoice 10/16/2023 MAJOR STREET PAVEMENT REPAIR PROJECT 167120 INV0000048 Invoice 10/17/2023 MAJOR STREET PAVEMENT REPAIR PROJECT 16174 INV0000129 Invoice 10/24/2023 CFS Tiny Tots Anna October 2023 1801.8 00049 APODACA PAVING INC. 10/26/2023 Regular 207836.6
INV0000164 Invoice 10/25/2023 Remail of Water Rate Notice 9966.28 08183 Anna Lanier 10/26/2023 Regular 1801.8
INV0000015 Invoice 09/30/2023 ACETYLENE, ARGON & OXYGEN TANK RENTALS SEP 2023 155.58 10063 Allstates Mailing Services, Inc 10/26/2023 Regular 9966.28 INV0000137 Invoice 10/24/2023 October 2023 655.74
01401 AIRGAS USA LLC 10/26/2023 Regular 155.58
Payable # Payable Type Payable Date Payable Description Payable Amount Bank Code: AP - Grover Beach-Mechanics Bank - Grover Beach 06381 AFLAC 10/26/2023 Regular 655.74
Check Register
City of Grover Beach, CA Packet: APPKT00042 - AP Check Run 10-26-23 By Check Number
Vendor Number Vendor Name Payment Date Payment Type Payment Amount 74529
74530
74531
74532
74533
74534
74535
74536
74537
74538
74539
74540
74541
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74544
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Number
74547
INV0000122 Invoice 10/11/2023 NCMA 2023 ANNUAL REPORT PROF. SERVICES SEPT 2023 2682 INV0000028 Invoice 10/03/2023 SCISSOR LIFT RENTAL 10/03/2023 200 08785 GSI Water Solutions, Inc 10/26/2023 Regular 2682
Check Register Packet: APPKT00042-AP Check Run 10-26-23 Vendor Number Vendor Name Payment Date Payment Type Payment Amount Payable # Payable Type Payable Date Payable Description Payable Amount 00263 GROVER TOOL RENTAL 10/26/2023 Regular 200
10/26/2023 11:19:50 AM
INV0000057 Invoice 10/14/2023 GROVER HEIGHTS TENNIS COURT LIGHTING REPAIR 538 INV0000058 Invoice 10/14/2023 GRAND AVENUE STREET LIGHTING 278.5 INV0000027 Invoice 10/17/2023 CORP YARD LOCK INSTALL 272.79 00247 G.T. COX ELECTRIC 10/26/2023 Regular 816.5
INV0000026 Invoice 07/20/2023 WATER DEPARTMENT SUPPLIES 5203.69 01558 FRANK'S LOCK & KEY 10/26/2023 Regular 272.79
INV0000061 Invoice 10/20/2023 CORP YARD JANITORIAL SERVICE 10-23 500 09727 FAMCON Pipe & Supply, Inc. 10/26/2023 Regular 5203.69 01362 EXECUTIVE JANITORIAL INC. 10/26/2023 Regular 3150 INV0000059 Invoice 10/20/2023 CITY HALL & POLICE DEPT. JANITORIAL SERVICES 10-23 2650 INV0000156 Invoice 10/25/2023 KE_ICMA Conf-TX_Lodging_Tommie Hotel_10-4-2023 1522.85 INV0000158 Invoice 10/25/2023 KE_ICMA Conf-TX-lunch_10-4-2023 34.68 INV0000154 Invoice 10/25/2023 KE_ICMA Conf-TX_lunch-Modern Market_10-1-2023 23.89 INV0000155 Invoice 10/25/2023 KE_ICMA Conf-TX_Breakfast-Tommie Cafe_10-4-2023 8 INV0000152 Invoice 10/25/2023 KE_ICMA Conf-TX_dinner-Terry Blacks BBQ_9-30-2023 59.14 INV0000153 Invoice 10/25/2023 KE_ICMA Conf-TX-Breakfast-Tommie Cafe_10-1-2023 8.5 INV0000150 Invoice 10/25/2023 KE_ICMA Conf-TX_dinner-Pappasitos_9-29-2023 17.19 INV0000151 Invoice 10/25/2023 KE_ICMA Conf-TX_lunch-Torchys_9-30-2023 21.37 10438 ERIKSSON 10/26/2023 Regular 1714.12
INV0000147 Invoice 10/25/2023 KE_ICMA Conference-lunch-SLO Cafe_9-29-2023 18.5 10805 Eric Green 10/26/2023 Regular 34.58
INV0000142 Invoice 10/04/2023 UNIFORM SERVICES 34.58
10521 El Dorado Brands LLC 10/26/2023 Regular 4000
INV0000050 Invoice 10/23/2023 Rent at 921 Huston - October '23 4000 10167 Doomsday Skate, LLC 10/26/2023 Regular 336
INV0000136 Invoice 10/24/2023 CFS Doomsday Skate October 2023 336 04096 DJ'S PLUMBING INC 10/26/2023 Regular 190
INV0000121 Invoice 10/19/2023 LOC# 114 RAMONA PARK MENS RESTROOM CALLOUT 190 04562 DEPT OF JUSTICE ACCOUNTING OFFICE/CASHIERING UNIT 10/26/2023 Regular 517 INV0000053 Invoice 10/23/2023 Livescan for month of September 517 07495 DE LAGE LANDEN 10/26/2023 Regular 108.74
INV0000135 Invoice 10/24/2023 Copier Lease - Canon DR-G2110 10/15/23 to 11/14/23 108.74 01777 CONDOR SECURITY 10/26/2023 Regular 719.5
INV0000004 Invoice 10/17/2023 Security for Summer Concerts 719.5 05337 COBB TREE'S INC. 10/26/2023 Regular 750
INV0000025 Invoice 10/12/2023 RAMONA PARK - OAK TREE BROKEN BRANCH AND TRIM 750 00262 CITY OF GROVER BEACH WATER DEPT.10/26/2023 Regular 9556.63 INV0000144 Invoice 10/24/2023 City Water Accounts 8/1/23-10/1/23 9556.63 10535 Charlotte L Ritter 10/26/2023 Regular 115.5
INV0000157 Invoice 10/25/2023 CFS 10/2023 Dance, Multi-C, Body Movement 115.5 10766 Central Coast Balboa 10/26/2023 Regular 458.5
INV0000131 Invoice 10/24/2023 CFS 10.2023 Balboa and Social 458.5 INV0000023 Invoice 08/25/2023 PARTS FOR TRUCK # 409 51.12 INV0000024 Invoice 10/05/2023 PARTS FOR TRUCK # 300 174.85 00436 CARQUEST AUTO PARTS 10/26/2023 Regular 308.92
INV0000022 Invoice 08/25/2023 PARTS FOR TRUCK #400 82.95 INV0000064 Invoice 10/05/2023 CDC INMATE CREW CLEANUP 09/23/2023 2939.69 74548
74549
74550
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74553
74554
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74558
74559
74560
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74562
74563
74564
Number
74565
74566
INV0000126 Invoice 10/17/2023 FOG PROGRAM ADMINISTRATION SERVICES SEP 2023 1945.98 INV0000072 Invoice 10/16/2023 SOD HYPO 12.5% 791.7
04996 WALLACE GROUP 10/26/2023 Regular 1945.98
INV0000141 Invoice 10/24/2023 Sharp/MX-5071 9/13/23-10/12/23 271.07 06596 UNIVAR USA INC 10/26/2023 Regular 791.7
Check Register Packet: APPKT00042-AP Check Run 10-26-23 Vendor Number Vendor Name Payment Date Payment Type Payment Amount Payable # Payable Type Payable Date Payable Description Payable Amount INV0000133 Invoice 10/24/2023 copier usage - SHA-MX-C304W 9/21/23 to 10/20/23 73.72 10/26/2023 11:19:50 AM
04191 ULTREX 10/26/2023 Regular 414.12
INV0000132 Invoice 10/24/2023 copier usage - SHA-MX-5071 9/18/23 to 10/17/ 69.33 INV0000138 Invoice 10/24/2023 Sept -Oct 2023 Project 6001 15986.25 INV0000163 Invoice 10/25/2023 Oct Financials 3765.65
INV0000071 Invoice 09/26/2023 SAFETY GEAR FOR PUBLIC WORKS 411.79 10566 Tyler Technologies, Inc 10/26/2023 Regular 19751.9 INV0000034 Invoice 10/04/2023 ALUMINUM SIGNAGE & SUPPLIES 289.6 INV0000070 Invoice 09/26/2023 STREET SIGNAGE SUPPLIES 184.49 INV0000068 Invoice 10/05/2023 RAMONA CENTER PEST CONTROL SERVICES 10/05/23 188.32 06895 Traffic Management, Inc. 10/26/2023 Regular 885.88 INV0000143 Invoice 10/24/2023 Gas Charges for City Facilities 9/12/23-10/12/23 286.37 00657 TERMINIX PROCESSING CENTER 10/26/2023 Regular 188.32 INV0000067 Invoice 10/04/2023 GRAND AVENUE MEDIANS IRRIG. SUPPLIES 18.74 00437 SOUTHERN CALIF GAS CO 10/26/2023 Regular 286.37
INV0000033 Invoice 10/12/2023 COMMUNITY CENTER QUARTERLY SECURITY MONITORING NOV 119.85 08324 Siteone Landscape Supply, LLC 10/26/2023 Regular 18.74 INV0000031 Invoice 09/11/2023 NITRATE PLANT QUARTERLY SECURITY OCT-DEC 2023 149.85 INV0000032 Invoice 10/12/2023 COMMUNITY CENTER QUARTERLY SECURITY NOV-JAN 2024 179.85 INV0000128 Invoice 10/24/2023 10.2023 CFS Tiny Tots Sandy 2914.1 06953 SENTINEL SECURITY SOLUTIONS, Inc 10/26/2023 Regular 449.55 INV0000124 Invoice 10/18/2023 CIP 2295-17 PROFESSIONAL SERVICES 8/26-9/29/23 20081 00322 SANDY MERSHON 10/26/2023 Regular 2914.1
05766 RICK ENGINEERING COMPANY 10/26/2023 Regular 20966 INV0000123 Invoice 10/18/2023 CIP 2295-16 PROFESSIONAL SERVICES 8/26-9/29/23 885 00368 Principal Life Insurance Company 10/26/2023 Regular 4468.86 INV0000145 Invoice 10/24/2023 November 2023-Employee Insurance Premiums 4468.86 07976 PHELAN KATHRYN 10/26/2023 Regular 408.8
INV0000125 Invoice 10/24/2023 10.2023 CFS Tai Chi & Strech & Balance 408.8 INV0000140 Invoice 10/24/2023 PW Electric Charges 8/8/23-9/6/23 246.03 INV0000162 Invoice 10/25/2023 PW & Parks Electric 9/20/23-10/19/23 23288.22 INV0000030 Invoice 10/06/2023 SUBLET REPAIR FOR TRUCK # 226 421.85 00344 PACIFIC GAS AND ELECTRIC 10/26/2023 Regular 23534.25 INV0000161 Invoice 10/25/2023 MB_ICMA Conf_TX_Lyft_10-1-2023 9.04 00334 Mullahey Ford 10/26/2023 Regular 421.85
INV0000159 Invoice 10/25/2023 MB_ICMA Conf-TX-Uber_9-29-2023 21.45 INV0000160 Invoice 10/25/2023 MB_ICMA Conf-TX_Uber_9-30-2023 19.88 INV0000065 Invoice 10/02/2023 TRAFFIC SIGNAL MAINTENANCE SEP 2023 1020 08582 Matthew Bronson 10/26/2023 Regular 50.37
INV0000130 Invoice 10/24/2023 CFS Paint pmt2 9.8.23 - 12.1.23 700.01 00472 LEE WILSON ELECTRIC CO. INC 10/26/2023 Regular 1020 INV0000134 Invoice 10/24/2023 CFS Yoga October 2023 84
07613 Kristopher Doe 10/26/2023 Regular 700.01
09973 Jennifer Ann Anderson 10/26/2023 Regular 84
Payment
359,123.08
0.00 0.00
0.00 0.00
359,123.08
EFT's00
88 55
Voided Checks01
Bank Drafts00
Regular Checks 88 54
Manual Checks00
Bank Code AP - Grover Beach Summary
Payable
Count
Payment
Payment Type Count
DESCRIPTION OF RESOURCES AMOUNT
Balance from September 30, 2023 $ 4,282,097.79
Deposit from Interest 10/31/2023 14,550.03
Total Resources $ 4,296,647.82
DESCRIPTION OF EXPENDITURES AMOUNT
Transfers for Staff Time:
Payroll Expenses 14,798.01
Payroll adjustment
Transfers for Non-Construction and Other:
Accounts Payable Expenses 862.50
Transfers for Construction:
Accounts Payable Expenses 57,221.63
Total Expenditures $ 72,882.14
Cash Balance as of October 31, 2023 $ 4,223,765.68
Respectfully,
Lorena Zarate
Finance Manager
CITY OF GROVER BEACH
2022 STREETS BOND ACCOUNT ($10,000,000)
Treasurer's Report for November 13, 2023 City Council Meeting October 1, 2023 to October 31, 2023
Agenda Item No. 6
MINUTES
CITY COUNCIL MEETING
MONDAY, OCTOBER 23, 2023
CALL TO ORDER Mayor Bright called the meeting to order at 6:00 p.m. in the City Hall Council Chamber, 154 South Eighth Street, Grover Beach, California.
FLAG SALUTE The flag salute was led by Kimalee Peters, an 11-year-old, 6th grader at Grover Beach Elementary.
ROLL CALL
City Council: Council Members Daniel Rushing, Zach Zimmerman, Mayor Pro Tem Robert Robert, and Mayor Karen Bright were present. Council Member Clint Weirick was absent.
City Staff: City Manager Matthew Bronson, City Attorney David Hale, Assistant City Manager Kristin Eriksson, City Clerk Wendi Sims, Police Chief John Peters, Administrative Services Director Deanne Purcell, Community Development Director Megan Martin, Interim Public Works Director/City Engineer Steven Kahn, Senior Engineer Gabriel Munoz-Moris, and Associate Planner Janet Reese were also present.
CLOSED SESSION ANNOUNCEMENTS
None
AGENDA REVIEW
Mayor Bright requested to pull Item 8. Approve the Proposition 218 Noticing Process for a Hearing on Proposed Water and Wastewater Rates for further discussion. City Manager Bronson announced that the Closed Session item was being pulled and cancelled due to some last minute changes and the item was not necessary.
Action: Upon unanimous consensus, the Council adopted the agenda as amended.
CEREMONIAL CALENDAR
1. Proclamation for Red Ribbon Week was read by Council Member Zimmerman and accepted by Police Chief Peters.
PRESENTATIONS
None
PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council, but were not listed on the agenda
• Brenda Auer
Agenda Item No. 7
Minutes: City Council Meeting Page 2
Monday, October 23, 2023
There was no one else for public comment and the Mayor closed public comment.
CONSENT AGENDA
It was motioned by Mayor Pro Tem Robert and seconded by Council Member Zimmerman to approve Consent Agenda Item Nos. 2, 3, 4, 5, 6, and 7 as recommended. The motion carried on the following roll call vote:
AYES: Council Members – Rushing, Zimmerman, Mayor Pro Tem Robert and Mayor Bright
NOES: Council Members – None
ABSENT: Council Members – Weirick
ABSTAIN: Council Members – None
2. Treasurer’s Report for the Period September 1, through September 30, 2023 Action: Approved the Treasurer’s Report as submitted.
3. Treasurer’s Report for the 2022 Streets Bond Account - $10,000,000 for the Period September 1, through September 30, 2023
Action: Approved the Treasurer’s Report as submitted.
4. Minutes of the City Council Meeting on Tuesday, October 10, 2023 Action: Approved the minutes as submitted.
5. City Council Meeting Schedule for Calendar Year 2024 (Continued from City Council Meeting on Tuesday, October 10,2023)
Action: Adopted the proposed City Council meeting schedule for calendar year 2024.
6. Award of Construction Contract for Measure K-14 Street Improvements for CIP 2295-16 (Portions of N. 2nd Street, Front Street, Ramona Avenue, Saratoga Avenue) Action: Awarded a contract for construction of CIP 2295-16 as part of the Measure K-14 Street Rehabilitation Program to the J. F. Will Company in the amount of $1,860,176.30 for the Base Bid; authorized the City Manager to sign and affirm change orders up to an aggregate of $200,000; and authorized the Mayor to execute the contract on behalf of the City.
7. Approval of Property Lease Agreement for Police Department and Public Works Department Storage Space at 45 Newport Avenue, Suite 2 (APN 060-074-014) Action: Approved a property lease agreement for Police Department and Public Works Department storage space at 45 Newport Avenue, Suite 2 (APN 060-074-014) and authorized the City Manager to execute the agreement on behalf of the City.
ITEM PULLED FROM CONSENT AGENDA
8. Approve the Proposition 218 Noticing Process for a Hearing on Proposed Water and Wastewater Rates
Mayor Bright invited public comment on this matter.
Minutes: City Council Meeting Page 3
Monday, October 23, 2023
• Geoff English
• Sylvia Bohrer
• Ken Lehmann
• Lesley Marr
• Jeff Bohrer
• Wayne Embree
• Cathryn Sells
• Bill Ross
• Marsha
• Bolyanatz
• Susan Cleek
• John Clements
• Debbie Peterson
There being no further public comments received, the Mayor closed public comment.
Action: It was motioned by Council Member Zimmerman and seconded by Council Member Rushing to Approve a New Proposition 218 noticing process for holding a public hearing on December 11, 2023 on proposed water and wastewater rates.
AYES: Council Members – Rushing, Zimmerman, Mayor Pro Tem Robert and Mayor Bright
NOES: Council Members – None
ABSENT: Council Members – Weirick
ABSTAIN: Council Members – None
RECESS: Mayor Bright requested a 5-minute break, upon consensus of the City Council the meeting recessed at 7:33 p.m.
RECONVENE: At 7:38 p.m. the meeting was reconvened with all members of Council present, with the exception of Council Member Weirick who was absent.
PUBLIC HEARING
9. Public Hearing and Resolution Regarding the Closeout of State Community Development Block Grant Coronavirus (CDBG-CV) Contract
Mayor Bright read the title to the foregoing item, declared the Public Hearing open, and deferred to staff for a report.
Community Development Director Martin and Associate Planner Reese gave a brief PowerPoint presentation on the Closeout of State Community Development Block Grant Coronavirus (CDBG-CV) Contract.
Mayor Bright invited public comment on this matter.
• Devon McQuade
Minutes: City Council Meeting Page 4
Monday, October 23, 2023
There being no further public comments received, the Mayor Closed the Public Hearing.
Action: Council receive a report summarizing the accomplishments performed under the State Community Development Block Grant Coronavirus (CDBG-CV) Agreement 20- CDBG-CV2-00087; conducted a public hearing to solicit citizen input regarding expenditures and accomplishments of the funding received under the contract; and direct staff to proceed with submitting required documents for closeout to the State.
REGULAR BUSINESS
10. City Streets Pavement Cut Policy
Mayor Bright read the title to the foregoing item and deferred to staff for a report.
Senior Engineer Munoz-Morris gave a PowerPoint Presentation and answered questions from Council with Interim Public Works Director/City Engineer Kahn.
Mayor Bright invited public comment on this matter. No public comments were received at this time and the Mayor closed public comment.
Action: It was motioned by Council Member Zimmerman and seconded by Mayor Pro Tem Robert to Adopt a Pavement Cut Policy to establish guidelines for pavement cuts in recently paved streets. The motion carried on the following roll call vote:
AYES: Council Members – Rushing, Zimmerman, Mayor Pro Tem Robert and Mayor Bright
NOES: Council Members – None
ABSENT: Council Members – Weirick
ABSTAIN: Council Members – None
COUNCIL COMMITTEE REPORTS
Council Member Rushing gave an update on the Five Cities Fire Joint Powers Authority.
Mayor Pro Tem Robert gave an update on the Integrated Waste Management Authority (IWMA).
COUNCIL COMMUNICATIONS
A. Mayor Pro Tem Robert reminded everyone of the Pancake Breakfast at the Grange over on Manhattan and 13th Street the 1st Sunday of the Month.
B. Council Member Zimmerman reminded everyone of the South County Chambers of Commerce Mixer at Epic Entertainment on Wednesday and the 2023 Walk to End Alzheimer’s is Saturday, November 4th at Mission Plaza in SLO.
Minutes: City Council Meeting Page 5
Monday, October 23, 2023
C. Mayor Bright mentioned attending the Food Pantry’s 50th Year Celebration and also commented on the meeting that she had with the Tobacco Control Council and reported at the last council meeting that vaping is as much as a pack of cigarettes and it’s actually more like a carton of cigarettes and wanted to correct that point.
ASSISTANT CITY MANAGER'S REPORTS AND COMMENTS
Assistant City Manager Eriksson mentioned the City’s new ERP system going live and gave kudos to our Administrative Services Department for such a smooth transition. She also gave an update on the recruitments for Five Cities Fire Chief, Administrative Services Director and that the City Attorney RFP was open, and an offer was made for the new Community Services Supervisor position. Then she reminded everyone of Truck or Treat happening on Friday at Ramona Garden Park starting at 5:00 p.m. and that applications for the Parade were available on the city’s website.
CITY ATTORNEY’S REPORTS AND COMMENTS
None
CLOSED SESSION
This Item was pulled and cancelled during the Agenda Review:
It is the intention of the City Council to meet in Closed Session concerning the following item:
A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Consideration of initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9 (d)(2) (One potential case).
ADJOURNMENT
There being no further business to come before the City Council, Mayor Lee adjourned the meeting at 8:30 p.m.
_____________________________
KAREN BRIGHT, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: November 13, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Lorena Zarate, Finance Manager
SUBJECT: FY 2023-24 First Quarter Financial Review
RECOMMENDATION
Receive and file the FY 2023-24 First Quarter Financial Review.
BACKGROUND
General Fund
The City Council adopted the Proposed Budget for FY 2023-25 on June 26, 2023, which includes a General Fund budget of $18,927,705 for FY 2023-24. The FY 2023-24 adopted General Fund budget assumed revenues and transfers-in of $19,365,517 leading to a projected surplus of $437,812 producing reserves equivalent to 42% of operating expenditures. This first quarter report covers revenue and expenditure activity in the beginning of FY 2023-24 from JulySeptember 2023. The first quarter is early in the fiscal year and identifying trends is difficult with this initial information. The mid-year budget review scheduled for February 2024 will be a more accurate gauge of financial activity and trends impacting the City’s budget.
Overall, General Fund revenues are performing as expected in the first quarter of FY 2023-24 using historical trends and the timing of when revenues are typically received. The City’s top five revenues (sales tax, property tax, cannabis tax, transient occupancy tax, and franchise fees) are estimated to comprise 80% of total budgeted revenue for FY 2023-24. The table below compares the first quarter of the current fiscal year with the previous year as well as the previous year-end actual to the budgeted year-end estimate for the current year with more information on the following page:
Table 1
Top 5 Revenues 7/1-9/30 Q1
Budgeted
7/1-6/30 % 7/1-9/30 Q1
Unaudited
Actuals 7/1-6/30 %
Inc (Decr)
PY
Sales Tax 405,822 6,028,000 7% 419,080 5,882,949 7% (13,259) Property Tax 8,658 5,614,200 0% 53,727 5,531,439 1% (45,068) Cannabis Tax 141,313 1,326,000 11% 205,206 1,198,037 17% (63,892) Franchise Tax 151,985 735,000 21% 136,240 713,394 19% 15,746 TOT (Hotel Tax) 208,851 900,000 23% 190,438 924,162 21% 18,413 Totals 916,629 14,603,200 6% 1,004,690 14,249,982 7% (88,060) FY 2023-24 Q1 FY 2022-23 Q1
Staff Report: FY 2023-24 First Quarter Financial Review Page 2 November 13, 2022
Sales Tax – Sales tax reported in the first quarter of FY 2023-24 is $13,259 lower when compared to the first quarter in the previous FY 2022-23. Sales tax revenue for the first quarter represents revenue collected for one month only (July 2023) as there is a two-month lag of when the revenue is received by the City. Revenue received in the first quarter of FY 2023-24 for transactions in May and June 2023 was accrued back to FY 2022-23. Although it is still early, current projections from the City’s sales tax consultant show that sales tax revenue is projected to meet budgeted levels for FY 2023-24.
Property Tax- Property taxes are due November 1 and February 1, therefore property tax revenue collected in the first quarter is very minimal. With that said, there is a timing difference where some of the property taxes collected in the first quarter of FY 2023-24 will be collected in the second quarter of the current year (as an example, on October 11, the City received approximately $141,000 in property tax revenue). Property tax revenue is following past years’ historical trends so far and no change to the budget is projected.
Cannabis Tax – Cannabis tax collected in the first quarter this year is lower than last fiscal year by approximately $63,000 given lower revenues reported by some of the cannabis businesses.
Staff will continue to closely monitor and report on this revenue source and will share more information during the mid-year budget review.
Transient Occupancy Tax (TOT) – TOT revenue for the first quarter of FY 2023-24 is $18,000 higher than the first quarter of FY 2022-23. This is due to collection and code compliance efforts related to recent audits performed on permitted STRs. Staff has worked with these STR permit holders to make sure they are staying current and in compliance.
Franchise Fees – Franchise fees for the first quarter of FY 2023-24 are $15,000 higher than the first quarter of FY 2022-23. This is partly due to a timing difference of collection where annual revenue that was collected in the first quarter of FY 2023-24 was received in the second quarter of FY 2022-23.
A more detailed estimate of City revenues will be presented with the mid-year budget review and included in the updated five-year financial forecast presented in February 2024.
With regards to expenditures, staff has worked to keep expenditures on track as budgeted with first quarter General Fund expenditures listed below in Table 2:
Table 2
As a general rule, expenditures should be approximately 25% of the budget at the end of the first quarter unless there are large expenses occurring at the beginning of the fiscal year. Expenditures for the City Management Department (which now includes the Community Services program) are GF Depts Budget Q1 Actual % of Budget
Non-Departmental $ 6,202,502 $ 1,483,355 23.92%
City Management 1,733,754 480,001 27.69%
Administrative Services 705,082 175,041 24.83%
Community Development 1,238,496 207,946 16.79%
Public Works 1,626,264 344,156 21.16%
Police 7,499,580 1,699,133 22.66%
Total GF Expenditures $ 19,005,678 $ 4,389,633 23.10%
Staff Report: FY 2023-24 First Quarter Financial Review Page 3 November 13, 2022
approximately 28% due to annual maintenance agreements and sponsorships that are paid at the beginning of the fiscal year. All other departments have expended funds less than 25% in the first quarter of the fiscal year.
Water Fund
Water Fund revenues are $84,000 higher from this time in FY 2022-23, of which approximately $50,000 is reimbursement for the Calvin Court property purchased by the City for the Central Coast Blue project. The remaining increase in revenue as compared to the first quarter of the prior fiscal year is due to a change in rates effective July 2023, previously approved by the City Council as part of the previous utility rate study. Operating expenditures for the Water Fund in the first quarter are tracking with expectations with 23% expended to date, which includes an annual payment for insurance, a semi-annual payment made to the County for the Lopez Lake water contract, and debt service payment for the water revenue bonds. The capital project expenditures are below budget for the first quarter due to capital projects that have not yet started.
Wastewater Fund
Wastewater Fund revenues are on track as compared to this time in FY 2022-23. Expenditures are below budget for the first quarter with only 9% expended to date. This is mainly due to capital projects that will start later this fiscal year and transfers-out that are reconciled and accounted for annually as a year-end adjustment. Operating expenditures that include salaries and benefits along with supplies and services are on track to meet budgeted expenditures.
FISCAL IMPACT
There is no fiscal impact from receiving this report.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive and file the FY 2023-24 First Quarter Financial Review; or
2. Provide alternative direction to staff
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Agenda Item No. 9
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: November 13, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Wendi Sims, City Clerk
SUBJECT: Appointment to the Parks, Recreation, and Beautification Commission
RECOMMENDATION
Confirm and approve Mayor Bright’s recommendation and adopt the Resolution to appoint LaShawnda Scaccianoce to fill the vacated four-year seat which will expire on May 31, 2027.
Upon adoption of the Resolution, it is further recommended that Parks, Recreation, and Beautification Commissioner Scaccianoce be introduced to the City Council and members of the audience.
BACKGROUND
There is currently a vacancy on the Parks, Recreation, and Beautification Commission (PRBC) due to the resignation of Zach Zimmerman who was appointed to the City Council on April 24, 2023 and whose term expires on May 31, 2024. Staff advertised the PRBC vacancies with press releases in the local newspapers and on social media, notices on the City website, government cable access Channel 20, and posted notices on the bulletin board located at City Hall.
An Advisory Body Screening Committee comprised of Mayor Bright, PRBC Chair Dee and Assistant City Manager Eriksson conducted an interview on November 8, 2023. There was only one qualified applicant who applied, and she was advised that the Council would be requested to confirm and approve Mayor Bright’s appointment at tonight's meeting. At the conclusion of the interview, Mayor Bright decided to recommend for Council approval the appointment of LaShawnda Scaccianoce to a four-year term of office scheduled to expire on May 31, 2027. The Commissioner will begin serving her new term at the next scheduled PRBC meeting.
FISCAL IMPACT
There is no fiscal impact with the recommended action.
ALTERNATIVES
The City Council has the following alternatives to consider:
1. Accept and confirm Mayor Bright’s recommendation and adopt the Resolution to appoint LaShawnda Scaccianoce to fill the vacated four-year seat which will expire on May 31, 2027;
2. Provide alternative direction to staff.
Staff Report: Appointment to Parks, Recreation, and Beautification Commission Page 2 November 13, 2023
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. All applicants were sent a copy of this staff report and the meeting agenda.
Attachments
1. Draft Resolution
2. Applications (Note: redacted copies posted to the City website. Copies without redactions are available by request to the City Management Department.) RESOLUTION NO. 23-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA AUTHORIZING THE APPOINTMENT OF LASHAWNDA
SCACCIANOCE TO THE GROVER BEACH PARKS, RECREATION AND
BEAUTIFICATION COMMISSION
WHEREAS, the Parks, Recreation and Beautification Commission is a body of five lay citizens; and
WHEREAS, one (1) vacancy currently exist on the Commission due to the resignation of Commissioner Zach Zimmerman who was appointed to the City Council on April 24, 2023 and whose seat was to expire on May 31, 2024; and
WHEREAS, the City actively solicited potential candidates to serve on the Parks, Recreation, and Beautification Commission; and
WHEREAS, it is the responsibility of the Advisory Body Screening Committee to interview prospective citizen candidates and submit their recommendation to the Council for approval; and
WHEREAS, the Advisory Body Screening Committee, consisting of Mayor Karen Bright, Parks, Recreation and Beautification Commission Chair Dee, and Interim Parks and Recreation Director/Assistant City Manager Eriksson conducted interviews on November 8, 2023, and at the conclusion of those interviews Mayor Bright made a recommendation to the Council for the appointment.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach hereby accepts Mayor Bright’s recommendation and approves the appointment to the Park, Recreation, and Beautification Commission of LaShawnda Scaccianoce to a four-year term of office, scheduled to expire on May 31, 2027.
On motion by ________, second by ________, and on the following roll-call vote, to wit:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members –
RECUSED: Council Members -
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a Regular Meeting of the City Council of the City of Grover Beach, California this 13th day of November 2023. _____________________________
KAREN BRIGHT, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK
Attachment 1
**DRAFT**
Attachment 2
Agenda Item No. 10
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: November 13, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Steve Kahn, Interim Public Works Director/City Engineer Erin Wiggin, CIP Manager
Kristin Bennet, Management Analyst
SUBJECT: Award of Professional Services Agreement for Citywide Landscape Maintenance
RECOMMENDATION
Award a Professional Services Agreement to Allweather Landscape for Citywide Landscape Maintenance services for an annual cost of $93,693 and authorize the Mayor to execute the agreement on behalf of the City.
BACKGROUND
The City owns and maintains nine parks, the train station, and various landscaped medians throughout the City of Grover Beach. Since 1998, the City has contracted mowing services with Coastland Professional Landscape Services for seven park locations in the city. The services can be described as “mow and blow” with no additional landscape or maintenance services being done at these seven park locations. In addition to this service, Public Works maintenance employees are currently dedicating between 80 and 100 staff hours per month to complete the additional landscaping and maintenance needs at these locations as well as the others not mowed by Coastland Professional Landscape Services. In the past three years, Coastland Professional Landscape Services has increased their costs by nearly 30% and the City does not have a formal agreement or contract established for these mowing services.
DISCUSSION
The City is looking to improve landscaping services for the public while minimizing impacts to the public works crew. In late September, the City requested proposals from professional landscaping services companies for proposals for weekly, bi-weekly and monthly landscaping services at eight parks (Mentone Basin Park is considered two parks under this scope given the park’s size), the train station and the West Grand Avenue medians. Additionally, proposers were asked to supply additive proposals for the Skate Park, North 4th Street entrance to the city, Oak Park Medians and Oak Park Retaining Walls & Wall Planters.
The City received four proposals by the listed deadline and one proposal after the deadline. The proposals were from Dan the Landscape Man, Hacienda Landscaping, Quincon Landscape and Brightview Landscape Services. A proposal review committee comprised of City staff thoroughly evaluated and ranked the proposals based on the City’s reviewing and scoring process. Staff followed up with the highest ranked vendor to review and further evaluate the proposal and scope and clarify contract language. The City followed up with reference checks on the highest rated vendor. Based on the firm’s qualifications presented within their proposal, their experience with Staff Report: Citywide Landscape Maintenance Agreement Page 2 November 13, 2023
similar scope projects, the quality of the proposal and the reference checks, the proposal review committee selected Allweather Landscape as the most qualified and responsive vendor for this project.
FISCAL IMPACT
The City currently spends $70,800 for mowing services. The costs for weekly and bi-weekly and landscaping services were proposed by Allweather to be $84,333. Additional proposed costs for monthly services at the Skate Park, the 4th Street Entrance, and the Oak Park Medians and Retaining walls are $9,360 annually. Award of the base bid and the additional services will cost $93,693 annually for an increased cost of $ 22,893 annually, but this will provide an increased level of service and provide Public Works Crew with more time to address other needed duties.
This cost will be incorporated into the existing Public Works operating budget.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Award a contract to Allweather Landscape for the Citywide Landscape Maintenance services for an annual cost of $93,693 and authorize the Mayor to execute the agreement on behalf of the City; or
2. Provide staff with additional direction
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Landscape Maintenance Agreement
AGREEMENT
CITY OF GROVER BEACH, CALIFORNIA
PROFESSIONAL SERVICES
CITY WIDE LANDSCAPE MAINTENANCE
THIS AGREEMENT is made and entered into effective the 13th day of November, 2023, by and between the CITY OF GROVER BEACH, a California municipal corporation (hereinafter referred to as "CITY"), and Allweather Landscape Inc. (hereinafter referred to as "CONSULTANT").
RECITALS
WHEREAS, CITY desires to obtain professional services for the recurring CITY WIDE LANDSCAPE MAINTENANCE more specifically identified in the Proposal, Scope of Work and Fee Schedule, jointly attached as “Exhibit A” to this Agreement, herein referred to as the PROJECT; and WHEREAS, CONSULTANT is engaged in the business of landscaping maintenance and hereby represents that it desires to and is professionally and legally capable of performing the services called for by this Agreement; and
WHEREAS, this Agreement sets forth the terms and conditions under which CONSULTANT shall provide professional services, to be paid by the City of Grover Beach; and WHEREAS, this Agreement will be administered for CITY by the Director of Public Works, hereinafter referred to as DIRECTOR or his/her designee.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants, conditions, and promises hereinafter contained to be kept and performed by the respective parties, it is mutually agreed as follows:
ARTICLE I. SCOPE OF SERVICES
CONSULTANT shall complete said PROJECT described herein and more fully described in Exhibit A, and in accordance with local, State and Federal laws. This shall include all work incidental to, or necessary to perform, such services even though not specifically described in Exhibit A.
ARTICLE II. CONTRACT PERIOD
The contract shall be for a period of three (3) years commencing on December 13, 2023 and continuing through December 13, 2026 The City of Grover Beach reserves the right to terminate or suspend this contract at any time as stipulated in Article IV. The City of Grover Beach reserves the right to extend the contract period for up to two (2) additional one (1)-year periods, provided that the Contractor and the City mutually agree to the extension.
ARTICLE III. COMPENSATION AND PAYMENT
A. CONSULTANT’S sole compensation for satisfactory performance of all services required or rendered pursuant to this Agreement shall be performed on a not to exceed basis of $93,693.00 B. CONSULTANT shall invoice CITY on a monthly basis, via detailed statement, which will be processed and payable in the normal course of CITY business, typically within 30 days of receipt of an invoice unless otherwise identified in this Agreement.
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A Attachment 1
C. The parties may modify this Agreement to increase or decrease the scope of services or provide for the rendition of services not required by this Agreement, which modification shall include an adjustment to CONSULTANT’S compensation. Any change in the scope of services must be made by written Contract Amendment to the Agreement signed by an authorized representative for each party. CONSULTANT shall not be entitled to any additional compensation if services are performed prior to a signed written Contract Amendment.
D. At any time prior to issuance of final payment, the CITY may conduct a cost audit of CONSULTANT’S invoices/statements. Any payment may be reduced by amounts found by CITY not to constitute allowable costs and/or adjusted for prior overpayments or underpayments. Upon CONSULTANT’S compliance with all terms of this Agreement, City shall promptly pay any balance of allowable costs.
ARTICLE IV. TERMINATION, REMEDIES, FORCE MAJEURE AND CONSOLIDATION OF DISPUTES A. This Agreement shall terminate without any liability of CITY to CONSULTANT upon the earlier of:
(i) CONSULTANT’S filing for protection under the federal bankruptcy laws, or any bankruptcy petition or petition for receiver commenced by a third party against CONSULTANT; (ii) Seven (7) calendar days written notice, with or without cause, by either the CITY or CONSULTANT;
(iii) Expiration of this Agreement.
B. Upon any termination or expiration of this Agreement, CONSULTANT shall (i) Immediately stop all work hereunder;
(ii) Immediately cause any and all of its subcontractors to cease work; and (iii) Return to CITY any and all unearned payments and all properties and materials in the possession of CONSULTANT that are owned by CITY. Subject to the terms of this Agreement, CONSULTANT shall be paid compensation for services satisfactorily performed prior to the effective date of termination. CONSULTANT shall not be paid for any work or services performed or costs incurred which reasonably could have been avoided.
C. In the event of termination due to failure of CONSULTANT to satisfactorily perform in accordance with the terms of this Agreement, CITY may withhold an amount that would otherwise be payable as an offset to, but not in excess of, CITY’S damages caused by such failure. In no event shall any payment by CITY pursuant to this Agreement constitute a waiver by CITY of any breach of this Agreement which may then exist on the part of CONSULTANT, nor shall such payment impair or prejudice any remedy available to CITY with respect to the breach.
D. Upon any breach of this Agreement by CONSULTANT, CITY may:
(i) Exercise any right, remedy (in contract, law or equity), or privilege which may be available to it under applicable laws of the State of California or any other applicable law; (ii) Proceed by appropriate court action to enforce the terms of the Agreement; and/or (iii) Recover all direct, indirect, consequential, economic and incidental damages for the breach of the Agreement. If it is determined that CITY improperly terminated this Agreement for default, such termination shall be deemed a termination for convenience.
E. CONSULTANT shall provide CITY with adequate written assurances of future performance, upon the request of the Director or his/her designee, in the event CONSULTANT fails to comply with any terms or conditions of this Agreement.
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F. CONSULTANT shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of CONSULTANT and without its fault or negligence such as, acts of God or the public enemy, acts of CITY in its contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. CONSULTANT shall notify the Director or his/her designee in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, and shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Director or his/her designee of the cessation of such occurrence.
G. CONSULTANT agrees that, notwithstanding any contrary provision in this Agreement, any dispute arising from or relating to this Agreement (including, without limitation, disputes based on contract, tort, equity or statute) may, at CITY’S option, be joined and consolidated with any other dispute or disputes arising from or relating to the PROJECT so that all disputes arising from or relating to the PROJECT may be resolved in a single proceeding. CONSULTANT hereby specifically waives any objection it may otherwise have to such joinder and consolidation and specifically consents to mediation, arbitration or any other dispute resolution mechanism, forum or proceeding necessary to effectuate the joinder and consolidation contemplated by this provision.
ARTICLE V. CONFIDENTIAL INFORMATION, OWNERSHIP OF DOCUMENTS AND COPYRIGHT LICENSE A. Any reports, information, or other data prepared or assembled by CONSULTANT pursuant to this Agreement shall not be made available to any individual or organization by CONSULTANT without the prior written approval of CITY. During the term of this Agreement, and thereafter, CONSULTANT shall not, without the prior written consent of CITY, disclose to anyone any Confidential Information. The term Confidential Information for the purposes of this Agreement shall include all proprietary and confidential information of CITY, including but not limited to business plans, marketing plans, financial information, designs, drawings, specifications, materials, compilations, documents, instruments, models, source or object codes and other information developed pursuant to this Agreement, disclosed or submitted, orally, in writing, or by any other medium or media, (otherwise referred to as “work”). All Confidential Information shall be and remain confidential and proprietary in CITY.
B. CONSULTANT shall not reproduce (such as photographs and prints), duplicate, distribute reproductions, or incorporate into any trademark or service mark, the work without the prior written consent of CITY.
Any rights of the CONSULTANT in the work terminate upon the death of such CONSULTANT and do not extend to such CONSULTANT’S heirs, successors or assigns.
C. Title to the work shall pass to CITY upon final acceptance by CITY. CITY reserves the right to donate, transfer or sell the work or any portion thereof. CITY shall have the exclusive right to publicly display the work and shall have a license to reproduce (such as photographs and prints) or create three-dimensional reproductions of the work for any noncommercial purpose (including, but not limited to, books, slides, postcards, film, Internet sites, reproductions for advertising, and other media). Prior to public display, the CITY shall consider the sensitive nature and potential security risk of releasing the information to the general public. Such reproductions shall contain if legally necessary a copyright notice. Reproductions for commercial purposes are only to be made with the mutual written consent of CONSULTANT and CITY.
All references and reproductions or adaptations of the work will credit the work to the CONSULTANT unless CONSULTANT requests to the contrary. CITY reserves the right to modify,remove and/or relocate the work at any time, and after consultation with CONSULTANT, shall have the right to determine when and if modifications, repairs and/or restorations are needed. If City makes modifications, repairs or DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
restoration not approved by the CONSULTANT, the CONSULTANT shall have the right to sever its association with the work. CONSULTANT agrees to give CITY written notice prior to asserting any claim pertaining to the work, and CITY shall have not less than 90 days from the date of receipt of claim to cure any such claim. CITY may incorporate the work into any trademark or service mark to be utilized by City to register the same in accordance with Federal, state or local law.
D. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this Article (V).
This Article (V) shall survive expiration or termination of this Agreement.
ARTICLE VI. PROFESSIONAL SKILL
It is further mutually understood and agreed by and between the parties hereto that inasmuch as CONSULTANT represents to CITY that CONSULTANT and its subcontractors, if any, are skilled in the profession and shall perform in accordance with the standards of said profession necessary to perform the services agreed to be done by it under this Agreement, CITY relies upon the skill of CONSULTANT and any subcontractors to do and perform such services in a skillful manner and CONSULTANT agrees to thus perform the services and require the same of any subcontractors. Therefore, any acceptance of such services by CITY shall not operate as a release of CONSULTANT or any subcontractors from said professional standards.
ARTICLE VII. INDEMNIFICATION AND DEFENSE
A. Indemnification and Defense for Professional Services: To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY and any and all of its officers, officials, employees, agents and volunteers (“Indemnified Parties”) from and against any and all claims, losses, liabilities, damages, costs and expenses, including legal counsel’s fees and costs, to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT. CONSULTANT’S duty to defend shall consist of reimbursement of defense costs incurred by CITY in direct proportion to the CONSULTANT’S proportionate percentage of fault.
CONSULTANT’S percentage of fault shall be determined, as applicable, by a court of law, jury or arbitrator. In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator having made a determination of the CONSULTANT’S percentage of fault, the parties agree to mediation with a third party neutral to determine the CONSULTANT’S proportionate percentage of fault for purposes of determining the amount of indemnity and defense cost reimbursement owed to the CITY.
B. For All Other Liabilities: Notwithstanding the foregoing and without diminishing any rights of CITY under this Article (VII), for any liability, claim, demand, allegation against CITY arising out of, related to, or pertaining to any act or omission of CONSULTANT, but which is not a design professional service, CONSULTANT shall defend, indemnify, and hold harmless CITY, its officials, employees, and agents (“Indemnified Parties”) from and against any and all damages, costs, expenses (including reasonable attorney fees and expert witness fees), judgments, settlements, and/or arbitration awards, whether for personal or bodily injury, property damage, or economic injury, and arising out of, related to, any concurrent or contributory negligence on the part of the CITY, except for the sole or active negligence of, or willful misconduct of the CITY.
C. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall require each subcontractor to indemnify, hold harmless and defend DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.
This Article (VII) shall survive termination or expiration of this Agreement.
ARTICLE VIII. INSURANCE
A. Throughout the life of this Agreement, CONSULTANT shall pay for and maintain in full force and effect all insurance as required in Exhibit B, which is incorporated into and part of this Agreement, with an insurance company(ies) either:
(i) Admitted by the California Insurance Commissioner to do business in the State of California and rated no less than “A-VIII” in the Best’s Insurance Rating Guide; or (ii) As may be authorized in writing by CITY'S Administrative Services Director, or his/her successor, or his/her designee at any time and in his/her sole discretion. The required policies of insurance as stated in Exhibit B shall maintain limits of liability of not less than those amounts stated therein.
B. If at any time during the life of the Agreement or any extension, CONSULTANT or any of its subcontractors/sub-consultants fail to maintain any required insurance in full force and effect, all services and work under this Agreement shall be discontinued immediately, and all payments due or that become due to CONSULTANT shall be withheld until notice is received by CITY that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to CITY. Any failure to maintain the required insurance shall be sufficient cause for CITY to terminate this Agreement. No action taken by CITY pursuant to this Article (VIII) shall in any way relieve CONSULTANT of its responsibilities under this Agreement. The phrase “fail to maintain any required insurance” shall include, without limitation, notification received by CITY that an insurer has commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is insolvent.
C. The fact that insurance is obtained by CONSULTANT shall not be deemed to release or diminish the liability of CONSULTANT, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify CITY shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of CONSULTANT, its principals, officers, agents, employees, persons under the supervision of CONSULTANT, vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by any of them.
D. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall require each subcontractor/sub-consultant to provide insurance protection, as an additional insured, to the CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of this section, except that any required certificates and applicable endorsements shall be on file with CONSULTANT and CITY prior to the commencement of any services by the subcontractor. CONSULTANT and any subcontractor/sub-consultant shall establish additional insured status for CITY, its officers, officials, employees, agents and volunteers.
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
ARTICLE IX. CONFLICT OF INTEREST AND NON-SOLICITATION
A. Prior to CITY’S execution of this Agreement, CONSULTANT shall complete a City of Grover Beach Conflict of Interest Disclosure Statement in the form as set forth in Exhibit C. During the term of this Agreement, CONSULTANT shall have the obligation and duty to immediately notify CITY in writing of any change to the information provided by CONSULTANT in such statement.
B. CONSULTANT shall comply, and require its subcontractors to comply, with all applicable (i) Professional canons and requirements governing avoidance of impermissible client conflicts; and
(ii) Federal, state and local conflict of interest laws and regulations including, without limitation, California Government Code Section 1090 et. seq., the California Political Reform Act (California Government Code Section 87100 et. seq.), and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations Section 18700 et. seq.).
At any time, upon written request of CITY, CONSULTANT shall provide a written opinion of its legal counsel and that of any subcontractor that, after a due diligent inquiry, CONSULTANT and the respective subcontractor(s) are in full compliance with all laws and regulations. CONSULTANT shall take, and require its subcontractors to take, reasonable steps to avoid any appearance of a conflict of interest. Upon discovery of any facts giving rise to the appearance of a conflict of interest, CONSULTANT shall immediately notify CITY of these facts in writing.
C. In performing the work or services to be provided hereunder, CONSULTANT shall not employ or retain the services of any person while such person either is employed by CITY or is a member of any CITY council, commission, board, committee, or similar CITY body. This requirement may be waived in writing by the City Manager, if no actual or potential conflict is involved.
D. CONSULTANT represents and warrants that it has not paid or agreed to pay any compensation, contingent or otherwise, direct or indirect, to solicit or procure this Agreement or any rights/benefits hereunder.
E. Neither CONSULTANT, nor any of CONSULTANT’S subcontractors performing any services on this Project, shall bid for, assist anyone in the preparation of a bid for, or perform any services pursuant to, any other contract in connection with this Project. CONSULTANT and any of its subcontractors shall have no interest, direct or indirect, in any other contract with a third party in connection with this Project unless such interest is in accordance with all applicable law and fully disclosed to and approved by the City Manager, in advance and in writing.
F. If CONSULTANT should subcontract all or any portion of the work to be performed or services to be provided under this Agreement, CONSULTANT shall include the provisions of this Article in each subcontract and require its subcontractors to comply therewith.
This Article (IX) shall survive termination or expiration of this Agreement.
ARTICLE X. GENERAL TERMS
A. Except as otherwise provided by law, all notices expressly required of CITY within the body of this Agreement, and not otherwise specifically provided for, shall be effective only if signed by the Director or his/her designee.
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
B. Records of CONSULTANT’S expenses pertaining to the Project shall be kept on a generally recognized accounting basis and shall be available to CITY or its authorized representatives upon request during regular business hours throughout the life of this Agreement and for a period of three years after final payment or, if longer, for any period required by law. In addition, all books, documents, papers, and records of CONSULTANT pertaining to the Project shall be available for the purpose of making audits, examinations, excerpts, and transcriptions for the same period of time. If any litigation, claim, negotiations, audit or other action is commenced before the expiration of said time period, all records shall be retained and made available to CITY until such action is resolved, or until the end of said time period whichever shall later occur. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this paragraph. This Article 10(B) shall survive expiration or termination of this Agreement.
C. Prior to execution of this Agreement by CITY, CONSULTANT shall have provided evidence to CITY that CONSULTANT is licensed to perform the services called for by this Agreement (or that no license is required). CONSULTANT and any subcontractors shall agree to obtain any local licensing or certifications necessary to perform services within the City, including but not limited to City Business Tax Certificates. If CONSULTANT should subcontract all or any portion of the work or services to be performed under this Agreement, CONSULTANT shall require each subcontractor to provide evidence to CITY that subcontractor is licensed to perform the services called for by this Agreement (or that no license is required) before beginning work.
ARTICLE XI. NONDISCRIMINATION
To the extent required by controlling federal, state and local law, CONSULTANT shall not employ discriminatory practices in the provision of services, employment of personnel, or in any other respect on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, ethnicity, status as a disabled veteran or veteran of the Vietnam era. Subject to the foregoing and during the performance of this Agreement, CONSULTANT agrees as follows:
A. CONSULTANT will comply with all applicable laws and regulations providing that no person shall, on the grounds of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity made possible by or resulting from this Agreement.
B. CONSULTANT will not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, gender identification, status as a disabled veteran or veteran of the Vietnam era. CONSULTANT shall ensure that applicants are employed, and the employees are treated during employment, without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, gender identification, status as a disabled veteran or veteran of the Vietnam era. Such requirement shall apply to CONSULTANT’S employment practices including, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
compensation; and selection for training, including apprenticeship. CONSULTANT agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provision of this nondiscrimination clause.
C. CONSULTANT will, in all solicitations or advertisements for employees placed by or on behalf of CONSULTANT in pursuit hereof, state that all qualified applicants will receive consideration for employment without regard to race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era.
D. CONSULTANT will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice advising such labor union or workers' representatives of CONSULTANT’S commitment under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
E. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this Article (XI).
ARTICLE XII. INDEPENDENT CONTRACTOR
A. In the furnishing of the services provided for herein, CONSULTANT is acting solely as an independent contractor. Neither CONSULTANT, nor any of its officers, agents or employees shall be deemed an officer, agent, employee, joint venture, partner or associate of CITY for any purpose. CITY shall have no right to control or supervise or direct the manner or method by which CONSULTANT shall perform its work and functions. However, CITY shall retain the right to administer this Agreement so as to verify that CONSULTANT is performing its obligations in accordance with the terms and conditions thereof.
B. This Agreement is not evidence of a partnership or joint venture between CONSULTANT and CITY.
CONSULTANT shall have no authority to bind CITY absent CITY’S express written consent. Except to the extent otherwise provided in this Agreement, CONSULTANT shall bear its own costs and expenses in pursuit thereof.
C. Because of its status as an independent contractor, CONSULTANT and its officers, agents and employees shall have absolutely no right to employment rights and benefits available to CITY employees. CONSULTANT shall be solely liable and responsible for all payroll and tax withholding and for providing to, or on behalf of, its employees all employee benefits including, without limitation, health, welfare and retirement benefits. In addition, together with its other obligations under this Agreement, CONSULTANT shall be solely responsible, indemnify, defend and save CITY harmless from all matters relating to employment and tax withholding for and payment of CONSULTANT'S employees, including, without limitation:
(i) Compliance with Social Security and unemployment insurance withholding, payment of workers’ compensation benefits, and all other laws and regulations governing matters of employee withholding, taxes and payment; and
(ii) Any claim of right or interest in CITY employment benefits, entitlements, programs and/or funds offered employees of CITY whether arising by reason of any common law, de facto, leased, or co-employee rights or other theory. It is acknowledged that during the term of this DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
Agreement, CONSULTANT may be providing services to others unrelated to CITY or to this Agreement.
ARTICLE XIII. NOTICES
All notices, including notices of address changes, required to be sent hereunder shall be in writing and shall be deemed to have been given when mailed to the addresses listed below:
A. CITY: City of Grover Beach, Gregory Ray, Director of Public Works, 154 S. 8th Street, Grover Beach, CA 93433
B. CONSULTANT: Neil Towery, Owner, Allweather Landscape, Inc., P.O. Box 6734, Santa Maria, CA 93456.
ARTICLE XIV. BINDING
Subject to Article XVI, below, once this Agreement is signed by all parties, it shall be binding upon, and shall inure to the benefit of, all parties, and each parties' respective heirs, successors, assigns, transferees, agents, servants, employees and representatives.
ARTICLE XV. ASSIGNMENT
A. This Agreement is personal to CONSULTANT and there shall be no assignment by CONSULTANT of its rights or obligations under this Agreement without the prior written approval of the Grover Beach City Council. Any attempted assignment by CONSULTANT, its successors or assigns, shall be null and void unless approved by the Grover Beach City Council.
B. CONSULTANT hereby agrees not to assign the payment of any monies due CONSULTANT from CITY under the terms of this Agreement to any other individual(s), corporation(s) or entity(ies). CITY retains the right to pay any and all monies due CONSULTANT directly to CONSULTANT.
ARTICLE XVI. COMPLIANCE THE LAW
In providing the services required under this Agreement, CONSULTANT shall at all times comply with all applicable laws of the United States, the State of California and CITY, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement.
ARTICLE XVII. WAIVER
The waiver by either party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provisions of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.
ARTICLE XVIII. GOVERNING LAW AND VENUE
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be San Luis Obispo County, California.
ARTICLE XIX. HEADINGS
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The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify or add to the interpretation or meaning of the provisions of this Agreement.
ARTICLE XX. SEVERABILITY
The provisions of this Agreement are severable. The invalidity, or unenforceability of any one provision in this Agreement shall not affect the other provisions.
ARTICLE XXI. INTERPRETATION
The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against either party, but rather by construing the terms in accordance with their generally accepted meaning.
ARTICLE XXII. ATTORNEY’S FEES
If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and legal expenses.
ARTICLE XXIII. EXHIBITS
Each exhibit and attachment referenced in this Agreement is, by the reference, incorporated into and made a part of this Agreement.
ARTICLE XXIV. PRECEDENCE OF DOCUMENTS
In the event of any conflict between the body of this Agreement and any Exhibit or Attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the Exhibit or Attachment. Furthermore, any terms or conditions contained within any Exhibit or Attachment hereto which purport to modify the allocation of risk between the parties, provided for within the body of this Agreement, shall be null and void.
ARTICLE XXV. CUMULATIVE REMEDIES
No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.
ARTICLE XXVI. NO THIRD-PARTY BENEFICIARIES
The rights, interests, duties and obligations defined within this Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or interests in this Agreement benefit or flow to the interest of any third parties.
ARTICLE XXVII. EXTENT OF AGREEMENT
Each party acknowledges that they have read and fully understand the contents of this Agreement and any documents issued that resulted in selection of CONSULTANT for entry into this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersede all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both CITY and CONSULTANT.
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
AGREEMENT SIGNATURES
CITY OF GROVER BEACH, CALIFORNIA
PROFESSIONAL CONSULTANT SERVICES
CITY WIDE LANDSCAPE MAINTENANCE
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement effective as of the day and year first written above.
CITY OF GROVER BEACH
Karen Bright, Mayor Date
Attest:
Wendi Sims, City Clerk Date
Approved as to Form:
David P. Hale, City Attorney Date
Allweather Landscape Inc.
Neil Towery, Owner Date
Attachments:
1. Exhibit A - Scope of Services and Fee Schedule
2. Exhibit B - Insurance Requirements
3. Exhibit C - Disclosure of Conflict of Interest
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A 11/7/2023
EXHIBIT A
PROFESSIONAL CONSULTANT SERVICES
CONSULTANT SCOPE OF WORK AND FEE SCHEDULE
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A Exhibit A
Allweather Landscape Inc.
Received via email
10/05/2023
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
EXHIBIT B
PROFESSIONAL CONSULTANT SERVICES
INSURANCE REQUIREMENTS
Without limiting CONSULTANT’S indemnification of CITY, and prior to commencement of Work, CONSULTANT shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.
General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.
Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
Note: Workers' compensation and employer's liability insurance requirements may be eliminated for certain sole proprietorships, partnerships, or corporations without employees.
Consultant shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Umbrella or excess liability insurance. CONSULTANT shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
Other provisions or requirements
Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or subconsultants.
Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or selfinsurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance.
Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’S own insurance or self-insurance shall be called upon to protect it as a named insured.
CITY’S rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’S Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONSULTANT of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A
limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any crossliability exclusions.
Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONSULTANT, provide the same minimum insurance coverage and endorsements required of CONSULTANT.
CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONSULTANT agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review.
CITY’s right to revise specifications. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the CITY and Consultant may renegotiate CONSULTANT’S compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’S performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A DocuSign Envelope ID: 9DC94AFA-2FC4-4B75-BB8B-D4CAF36E9C6A Agenda Item No. 11
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: November 13, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Erin Wiggin, CIP Manager
Javier Garcia, Assistant Engineer
SUBJECT: Award of Consulting Services Agreement for the Water Reservoir Tank Rehabilitation Design (CIP 4391)
RECOMMENDATION
Approve a Consulting Services Agreement with MKN Engineers for $103,153 for the Water Reservoir Tank Rehabilitation Design Project (CIP 4391); authorize the Mayor to execute the agreement on behalf of the City; and authorize the City Manager to approve change orders up to $30,000.
BACKGROUND
The City owns and operates three welded steel water storage tanks at the Hillcrest water reservoir site. Tank Number 1 was constructed in 1963, Tank Number 2 was constructed in 1978 and Tank Number 3 was constructed in 1987. The most recent major rehabilitation work was done on Tank 1 in 1999 and Tank 2 in 2008. Recently, the City has developed a program in the Capital Improvement Program (CIP) to clean and inspect these tanks every 4-5 years. Based on the inspections from 2018 and earlier this year, the City has budgeted a tank rehabilitation project for this fiscal year.
In October, the City requested proposals from consulting firms to review the findings from the inspections and develop bid documents and technical specifications for the tank rehabilitation work. The City received proposals from DPSI Inc., ATS, Inc. and MKN Engineers. A proposal review committee comprised of City staff thoroughly evaluated and ranked the proposals based on the City’s reviewing and scoring process. Staff followed up with the preferred consultant to discuss items in the proposal, review and evaluate the scope, and clarify contract language.
Based on the firm’s qualifications presented within their proposal, the aggressive design schedule, their experience with similar scope projects, and the quality of the proposal, the proposal review committee selected MKN Engineers as the most qualified and responsive firm for this project.
FISCAL IMPACT
The costs for the design services proposed by MKN for this project are $103,153. Funding for this work will be provided from the Water Enterprise Fund.
Staff Report: Tank Rehabilitation Design Agreement Page 2 November 13, 2023
ALTERNATIVES
The Council has the following alternatives to consider:
1. Approve a Consulting Services Agreement with MKN Engineers for $103,153 for the Water Reservoir Tank Rehabilitation Design Project (CIP 4391); authorize the Mayor to execute the agreement on behalf of the City; and authorize the City Manager to approve change orders up to $30,000; or
2. Provide staff with alternative direction
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Consulting Services Agreement
AGREEMENT
CITY OF GROVER BEACH, CALIFORNIA
PROFESSIONAL DESIGN SERVICES
CIP 4391: WATER RESERVOIR TANK REHABILITATION DESIGN
THIS AGREEMENT is made and entered into effective the 13th day of November, 2023, by and between the CITY OF GROVER BEACH, a California municipal corporation (hereinafter referred to as "CITY"), and MICHAEL K. NUNLEY & ASSOCIATES, INC. aka MKN (hereinafter referred to as "CONSULTANT").
RECITALS
WHEREAS, CITY desires to obtain professional services for the CIP 4391: WATER RESERVOIR TANK REHABILITATION DESIGN, more specifically identified in the Proposal, Scope of Work and Fee Schedule, jointly attached as “Exhibit A” to this Agreement, herein referred to as the PROJECT; and WHEREAS, CONSULTANT is engaged in the business of professional design services and hereby represents that it desires to and is professionally and legally capable of performing the services called for by this Agreement; and
WHEREAS, this Agreement sets forth the terms and conditions under which CONSULTANT shall provide professional services, to be paid by the City of Grover Beach; and WHEREAS, this Agreement will be administered for CITY by the Director of Public Works hereinafter referred to as DIRECTOR or his/her designee.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants, conditions, and promises hereinafter contained to be kept and performed by the respective parties, it is mutually agreed as follows:
ARTICLE I. SCOPE OF SERVICES
CONSULTANT shall complete said PROJECT described herein and more fully described in Exhibit A, and in accordance with local, State and Federal laws. This shall include all work incidental to, or necessary to perform, such services even though not specifically described in Exhibit A.
ARTICLE II. COMPENSATION AND PAYMENT
A. CONSULTANT’S sole compensation for satisfactory performance of all services required or rendered pursuant to this Agreement shall be performed on a not to exceed basis of $103,153.
B. CONSULTANT shall invoice CITY on a monthly basis, via detailed statement, which will be processed and payable in the normal course of CITY business, typically within 30 days of receipt of an invoice unless otherwise identified in this Agreement.
C. The parties may modify this Agreement to increase or decrease the scope of services or provide for the rendition of services not required by this Agreement, which modification shall include an adjustment to CONSULTANT’S compensation. Any change in the scope of services must be made by written Contract Amendment to the Agreement signed by an authorized representative for each DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08 Attachment 1
party. CONSULTANT shall not be entitled to any additional compensation if services are performed prior to a signed written Contract Amendment.
D. At any time prior to issuance of final payment, the CITY may conduct a cost audit of CONSULTANT’S invoices/statements. Any payment may be reduced by amounts found by CITY not to constitute allowable costs and/or adjusted for prior overpayments or underpayments. Upon CONSULTANT’S compliance with all terms of this Agreement, City shall promptly pay any balance of allowable costs.
ARTICLE III. TERMINATION, REMEDIES, FORCE MAJEURE AND CONSOLIDATION OF DISPUTES A. This Agreement shall terminate without any liability of CITY to CONSULTANT upon the earlier of:
(i) CONSULTANT’S filing for protection under the federal bankruptcy laws, or any bankruptcy petition or petition for receiver commenced by a third party against CONSULTANT; (ii) Seven (7) calendar days written notice, with or without cause, by either the CITY or CONSULTANT;
(iii) Expiration of this Agreement.
B. Upon any termination or expiration of this Agreement, CONSULTANT shall (i) Immediately stop all work hereunder;
(ii) Immediately cause any and all of its subcontractors to cease work; and (iii) Return to CITY any and all unearned payments and all properties and materials in the possession of CONSULTANT that are owned by CITY. Subject to the terms of this Agreement, CONSULTANT shall be paid compensation for services satisfactorily performed prior to the effective date of termination. CONSULTANT shall not be paid for any work or services performed or costs incurred which reasonably could have been avoided.
C. In the event of termination due to failure of CONSULTANT to satisfactorily perform in accordance with the terms of this Agreement, CITY may withhold an amount that would otherwise be payable as an offset to, but not in excess of, CITY’S damages caused by such failure. In no event shall any payment by CITY pursuant to this Agreement constitute a waiver by CITY of any breach of this Agreement which may then exist on the part of CONSULTANT, nor shall such payment impair or prejudice any remedy available to CITY with respect to the breach.
D. Upon any breach of this Agreement by CONSULTANT, CITY may:
(i) Exercise any right, remedy (in contract, law or equity), or privilege which may be available to it under applicable laws of the State of California or any other applicable law; (ii) Proceed by appropriate court action to enforce the terms of the Agreement; and/or (iii) Recover all direct, indirect, consequential, economic and incidental damages for the breach of the Agreement. If it is determined that CITY improperly terminated this Agreement for default, such termination shall be deemed a termination for convenience.
E. CONSULTANT shall provide CITY with adequate written assurances of future performance, upon the request of the Director or his/her designee, in the event CONSULTANT fails to comply with any terms or conditions of this Agreement.
F. CONSULTANT shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of CONSULTANT and without its fault or negligence such as, acts of God or the public enemy, acts of CITY in its contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. CONSULTANT shall notify the DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
Director or his/her designee in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, and shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Director or his/her designee of the cessation of such occurrence.
G. CONSULTANT agrees that, notwithstanding any contrary provision in this Agreement, any dispute arising from or relating to this Agreement (including, without limitation, disputes based on contract, tort, equity or statute) may, at CITY’S option, be joined and consolidated with any other dispute or disputes arising from or relating to the PROJECT so that all disputes arising from or relating to the PROJECT may be resolved in a single proceeding. CONSULTANT hereby specifically waives any objection it may otherwise have to such joinder and consolidation and specifically consents to mediation, arbitration or any other dispute resolution mechanism, forum or proceeding necessary to effectuate the joinder and consolidation contemplated by this provision.
ARTICLE IV. CONFIDENTIAL INFORMATION, OWNERSHIP OF DOCUMENTS AND COPYRIGHT LICENSE A. Any reports, information, or other data prepared or assembled by CONSULTANT pursuant to this Agreement shall not be made available to any individual or organization by CONSULTANT without the prior written approval of CITY. During the term of this Agreement, and thereafter, CONSULTANT shall not, without the prior written consent of CITY, disclose to anyone any Confidential Information. The term Confidential Information for the purposes of this Agreement shall include all proprietary and confidential information of CITY, including but not limited to business plans, marketing plans, financial information, designs, drawings, specifications, materials, compilations, documents, instruments, models, source or object codes and other information developed pursuant to this Agreement, disclosed or submitted, orally, in writing, or by any other medium or media, (otherwise referred to as “work”). All Confidential Information shall be and remain confidential and proprietary in CITY.
B. CONSULTANT shall not reproduce (such as photographs and prints), duplicate, distribute reproductions, or incorporate into any trademark or service mark, the work without the prior written consent of CITY.
Any rights of the CONSULTANT in the work terminate upon the death of such CONSULTANT and do not extend to such CONSULTANT’S heirs, successors or assigns.
C. Title to the work shall pass to CITY upon final acceptance by CITY. CITY reserves the right to donate, transfer or sell the work or any portion thereof. CITY shall have the exclusive right to publicly display the work and shall have a license to reproduce (such as photographs and prints) or create three-dimensional reproductions of the work for any noncommercial purpose (including, but not limited to, books, slides, postcards, film, Internet sites, reproductions for advertising, and other media). Prior to public display, the CITY shall consider the sensitive nature and potential security risk of releasing the information to the general public. Such reproductions shall contain if legally necessary a copyright notice. Reproductions for commercial purposes are only to be made with the mutual written consent of CONSULTANT and CITY.
All references and reproductions or adaptations of the work will credit the work to the CONSULTANT unless CONSULTANT requests to the contrary. CITY reserves the right to modify, remove and/or relocate the work at any time, and after consultation with CONSULTANT, shall have the right to determine when and if modifications, repairs and/or restorations are needed. If City makes modifications, repairs or restoration not approved by the CONSULTANT, the CONSULTANT shall have the right to sever its association with the work. CONSULTANT agrees to give CITY written notice prior to asserting any claim pertaining to the work, and CITY shall have not less than 90 days from the date of receipt of claim to cure any such claim. CITY may incorporate the work into any trademark or service mark to be utilized by City to register the same in accordance with Federal, state or local law.
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D. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this Article (IV).
This Article (IV) shall survive expiration or termination of this Agreement.
ARTICLE V. PROFESSIONAL SKILL
It is further mutually understood and agreed by and between the parties hereto that inasmuch as CONSULTANT represents to CITY that CONSULTANT and its subcontractors, if any, are skilled in the profession and shall perform in accordance with the standards of said profession necessary to perform the services agreed to be done by it under this Agreement, CITY relies upon the skill of CONSULTANT and any subcontractors to do and perform such services in a skillful manner and CONSULTANT agrees to thus perform the services and require the same of any subcontractors. Therefore, any acceptance of such services by CITY shall not operate as a release of CONSULTANT or any subcontractors from said professional standards.
ARTICLE VI. INDEMNIFICATION AND DEFENSE
A. Indemnification and Defense for Professional Services: To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY and any and all of its officers, officials, employees, agents and volunteers (“Indemnified Parties”) from and against any and all claims, losses, liabilities, damages, costs and expenses, including legal counsel’s fees and costs, to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT. CONSULTANT’S duty to defend shall consist of reimbursement of defense costs incurred by CITY in direct proportion to the CONSULTANT’S proportionate percentage of fault.
CONSULTANT’S percentage of fault shall be determined, as applicable, by a court of law, jury or arbitrator. In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator having made a determination of the CONSULTANT’S percentage of fault, the parties agree to mediation with a third party neutral to determine the CONSULTANT’S proportionate percentage of fault for purposes of determining the amount of indemnity and defense cost reimbursement owed to the CITY.
B. For All Other Liabilities: Notwithstanding the foregoing and without diminishing any rights of CITY under this Article (V), for any liability, claim, demand, allegation against CITY arising out of, related to, or pertaining to any act or omission of CONSULTANT, but which is not a design professional service, CONSULTANT shall defend, indemnify, and hold harmless CITY, its officials, employees, and agents (“Indemnified Parties”) from and against any and all damages, costs, expenses (including reasonable attorney fees and expert witness fees), judgments, settlements, and/or arbitration awards, whether for personal or bodily injury, property damage, or economic injury, and arising out of, related to, any concurrent or contributory negligence on the part of the CITY, except for the sole or active negligence of, or willful misconduct of the CITY.
C. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall require each subcontractor to indemnify, hold harmless and defend CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.
This Article (VI) shall survive termination or expiration of this Agreement.
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ARTICLE VII. INSURANCE
A. Throughout the life of this Agreement, CONSULTANT shall pay for and maintain in full force and effect all insurance as required in Exhibit B, which is incorporated into and part of this Agreement, with an insurance company(ies) either:
(i) Admitted by the California Insurance Commissioner to do business in the State of California and rated no less than “A-VII” in the Best’s Insurance Rating Guide; or (ii) As may be authorized in writing by CITY'S Administrative Services Director, or his/her successor, or his/her designee at any time and in his/her sole discretion. The required policies of insurance as stated in Exhibit B shall maintain limits of liability of not less than those amounts stated therein.
B. If at any time during the life of the Agreement or any extension, CONSULTANT or any of its subcontractors/sub-consultants fail to maintain any required insurance in full force and effect, all services and work under this Agreement shall be discontinued immediately, and all payments due or that become due to CONSULTANT shall be withheld until notice is received by CITY that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to CITY. Any failure to maintain the required insurance shall be sufficient cause for CITY to terminate this Agreement. No action taken by CITY pursuant to this Article (VII) shall in any way relieve CONSULTANT of its responsibilities under this Agreement. The phrase “fail to maintain any required insurance” shall include, without limitation, notification received by CITY that an insurer has commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is insolvent.
C. The fact that insurance is obtained by CONSULTANT shall not be deemed to release or diminish the liability of CONSULTANT, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify CITY shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of CONSULTANT, its principals, officers, agents, employees, persons under the supervision of CONSULTANT, vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by any of them.
D. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall require each subcontractor/sub-consultant to provide insurance protection, as an additional insured, to the CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of this section, except that any required certificates and applicable endorsements shall be on file with CONSULTANT and CITY prior to the commencement of any services by the subcontractor. CONSULTANT and any subcontractor/sub-consultant shall establish additional insured status for CITY, its officers, officials, employees, agents and volunteers.
ARTICLE VIII. CONFLICT OF INTEREST AND NON-SOLICITATION A. Prior to CITY’S execution of this Agreement, CONSULTANT shall complete a City of Grover Beach Conflict of Interest Disclosure Statement in the form as set forth in Exhibit C. During the term of this Agreement, CONSULTANT shall have the obligation and duty to immediately notify CITY in writing of any change to the information provided by CONSULTANT in such statement.
B. CONSULTANT shall comply, and require its subcontractors to comply, with all applicable DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
(i) Professional canons and requirements governing avoidance of impermissible client conflicts; and
(ii) Federal, state and local conflict of interest laws and regulations including, without limitation, California Government Code Section 1090 et. seq., the California Political Reform Act (California Government Code Section 87100 et. seq.), and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations Section 18700 et. seq.).
At any time, upon written request of CITY, CONSULTANT shall provide a written opinion of its legal counsel and that of any subcontractor that, after a due diligent inquiry, CONSULTANT and the respective subcontractor(s) are in full compliance with all laws and regulations. CONSULTANT shall take, and require its subcontractors to take, reasonable steps to avoid any appearance of a conflict of interest. Upon discovery of any facts giving rise to the appearance of a conflict of interest, CONSULTANT shall immediately notify CITY of these facts in writing.
C. In performing the work or services to be provided hereunder, CONSULTANT shall not employ or retain the services of any person while such person either is employed by CITY or is a member of any CITY council, commission, board, committee, or similar CITY body. This requirement may be waived in writing by the City Manager, if no actual or potential conflict is involved.
D. CONSULTANT represents and warrants that it has not paid or agreed to pay any compensation, contingent or otherwise, direct or indirect, to solicit or procure this Agreement or any rights/benefits hereunder.
E. Neither CONSULTANT, nor any of CONSULTANT’S subcontractors performing any services on this Project, shall bid for, assist anyone in the preparation of a bid for, or perform any services pursuant to, any other contract in connection with this Project. CONSULTANT and any of its subcontractors shall have no interest, direct or indirect, in any other contract with a third party in connection with this Project unless such interest is in accordance with all applicable law and fully disclosed to and approved by the City Manager, in advance and in writing.
F. If CONSULTANT should subcontract all or any portion of the work to be performed or services to be provided under this Agreement, CONSULTANT shall include the provisions of this Article in each subcontract and require its subcontractors to comply therewith.
This Article (VIII) shall survive termination or expiration of this Agreement.
ARTICLE IX. GENERAL TERMS
A. Except as otherwise provided by law, all notices expressly required of CITY within the body of this Agreement, and not otherwise specifically provided for, shall be effective only if signed by the Director or his/her designee.
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
B. Records of CONSULTANT’S expenses pertaining to the Project shall be kept on a generally recognized accounting basis and shall be available to CITY or its authorized representatives upon request during regular business hours throughout the life of this Agreement and for a period of three years after final payment or, if longer, for any period required by law. In addition, all books, documents, papers, and records of CONSULTANT pertaining to the Project shall be available for the purpose of making audits, examinations, excerpts, and transcriptions for the same period of time. If any litigation, claim, negotiations, audit or other action is commenced before the expiration of said time period, all records shall be retained and made available to CITY until such action is resolved, or until the end of said time period whichever shall later occur. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this paragraph. This Article 10(B) shall survive expiration or termination of this Agreement.
C. Prior to execution of this Agreement by CITY, CONSULTANT shall have provided evidence to CITY that CONSULTANT is licensed to perform the services called for by this Agreement (or that no license is required). CONSULTANT and any subcontractors shall agree to obtain any local licensing or certifications necessary to perform services within the City, including but not limited to City Business Tax Certificates. If CONSULTANT should subcontract all or any portion of the work or services to be performed under this Agreement, CONSULTANT shall require each subcontractor to provide evidence to CITY that subcontractor is licensed to perform the services called for by this Agreement (or that no license is required) before beginning work.
ARTICLE X. NONDISCRIMINATION
To the extent required by controlling federal, state and local law, CONSULTANT shall not employ discriminatory practices in the provision of services, employment of personnel, or in any other respect on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, ethnicity, status as a disabled veteran or veteran of the Vietnam era. Subject to the foregoing and during the performance of this Agreement, CONSULTANT agrees as follows:
A. CONSULTANT will comply with all applicable laws and regulations providing that no person shall, on the grounds of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity made possible by or resulting from this Agreement.
B. CONSULTANT will not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, gender identification, status as a disabled veteran or veteran of the Vietnam era. CONSULTANT shall ensure that applicants are employed, and the employees are treated during employment, without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, gender identification, status as a disabled veteran or veteran of the Vietnam era. Such requirement shall apply to CONSULTANT’S employment practices including, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. CONSULTANT agrees to post in DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
conspicuous places, available to employees and applicants for employment, notices setting forth the provision of this nondiscrimination clause.
C. CONSULTANT will, in all solicitations or advertisements for employees placed by or on behalf of CONSULTANT in pursuit hereof, state that all qualified applicants will receive consideration for employment without regard to race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era.
D. CONSULTANT will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice advising such labor union or workers' representatives of CONSULTANT’S commitment under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
E. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this Article (X).
ARTICLE XI. INDEPENDENT CONTRACTOR
A. In the furnishing of the services provided for herein, CONSULTANT is acting solely as an independent contractor. Neither CONSULTANT, nor any of its officers, agents or employees shall be deemed an officer, agent, employee, joint venture, partner or associate of CITY for any purpose. CITY shall have no right to control or supervise or direct the manner or method by which CONSULTANT shall perform its work and functions. However, CITY shall retain the right to administer this Agreement so as to verify that CONSULTANT is performing its obligations in accordance with the terms and conditions thereof.
B. This Agreement is not evidence of a partnership or joint venture between CONSULTANT and CITY.
CONSULTANT shall have no authority to bind CITY absent CITY’S express written consent. Except to the extent otherwise provided in this Agreement, CONSULTANT shall bear its own costs and expenses in pursuit thereof.
C. Because of its status as an independent contractor, CONSULTANT and its officers, agents and employees shall have absolutely no right to employment rights and benefits available to CITY employees. CONSULTANT shall be solely liable and responsible for all payroll and tax withholding and for providing to, or on behalf of, its employees all employee benefits including, without limitation, health, welfare and retirement benefits. In addition, together with its other obligations under this Agreement, CONSULTANT shall be solely responsible, indemnify, defend and save CITY harmless from all matters relating to employment and tax withholding for and payment of CONSULTANT'S employees, including, without limitation:
(i) Compliance with Social Security and unemployment insurance withholding, payment of workers’ compensation benefits, and all other laws and regulations governing matters of employee withholding, taxes and payment; and
(ii) Any claim of right or interest in CITY employment benefits, entitlements, programs and/or funds offered employees of CITY whether arising by reason of any common law, de facto, leased, or co-employee rights or other theory. It is acknowledged that during the term of this Agreement, CONSULTANT may be providing services to others unrelated to CITY or to this Agreement.
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
ARTICLE XII. NOTICES
All notices, including notices of address changes, required to be sent hereunder shall be in writing and shall be deemed to have been given when mailed to the addresses listed below:
A. CITY: City of Grover Beach, Gregory Ray, Director of Public Works, 154 South 8th Street, Grover Beach, CA 93433
B. CONSULTANT: Michael K. Nunley & Associates, Inc. aka MKN, P.O. Box 1604, Arroyo Grande, CA 93421.
ARTICLE XIII. BINDING
Subject to Article XII, below, once this Agreement is signed by all parties, it shall be binding upon, and shall inure to the benefit of, all parties, and each parties' respective heirs, successors, assigns, transferees, agents, servants, employees and representatives.
ARTICLE XIV. ASSIGNMENT
A. This Agreement is personal to CONSULTANT and there shall be no assignment by CONSULTANT of its rights or obligations under this Agreement without the prior written approval of the Grover Beach City Council. Any attempted assignment by CONSULTANT, its successors or assigns, shall be null and void unless approved by the Grover Beach City Council.
B. CONSULTANT hereby agrees not to assign the payment of any monies due CONSULTANT from CITY under the terms of this Agreement to any other individual(s), corporation(s) or entity(ies). CITY retains the right to pay any and all monies due CONSULTANT directly to CONSULTANT.
ARTICLE XV. COMPLIANCE THE LAW
In providing the services required under this Agreement, CONSULTANT shall at all times comply with all applicable laws of the United States, the State of California and CITY, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement.
ARTICLE XVI. WAIVER
The waiver by either party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provisions of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.
ARTICLE XVII. GOVERNING LAW AND VENUE
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be San Luis Obispo County, California.
ARTICLE XVIII. HEADINGS
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify or add to the interpretation or meaning of the provisions of this Agreement.
ARTICLE XIX. SEVERABILITY
The provisions of this Agreement are severable. The invalidity, or unenforceability of any one provision in this Agreement shall not affect the other provisions.
ARTICLE XX. INTERPRETATION
The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against either party, but rather by construing the terms in accordance with their generally accepted meaning.
ARTICLE XXI. ATTORNEY’S FEES
If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and legal expenses.
ARTICLE XXII. EXHIBITS
Each exhibit and attachment referenced in this Agreement is, by the reference, incorporated into and made a part of this Agreement.
ARTICLE XXIII. PRECEDENCE OF DOCUMENTS
In the event of any conflict between the body of this Agreement and any Exhibit or Attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the Exhibit or Attachment. Furthermore, any terms or conditions contained within any Exhibit or Attachment hereto which purport to modify the allocation of risk between the parties, provided for within the body of this Agreement, shall be null and void.
ARTICLE XXIV. CUMULATIVE REMEDIES
No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.
ARTICLE XXV. NO THIRD-PARTY BENEFICIARIES
The rights, interests, duties and obligations defined within this Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or interestsin this Agreement benefit or flow to the interest of any third parties.
ARTICLE XXVI. EXTENT OF AGREEMENT
Each party acknowledges that they have read and fully understand the contents of this Agreement and any documents issued that resulted in selection of CONSULTANT for entry into this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersede all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both CITY and CONSULTANT.
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
AGREEMENT SIGNATURES
CITY OF GROVER BEACH, CALIFORNIA
PROFESSIONAL CONSULTANT SERVICES
CIP 4391: WATER TANK REHABILITATION DESIGN
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement effective as of the day and year first written above.
CITY OF GROVER BEACH
Karen Bright, Mayor Date
Attest:
Wendi Sims, City Clerk Date
Approved as to Form:
David P. Hale, City Attorney Date
MICHAEL K. NUNLEY & ASSOCIATES, INC. aka MKN
Michael Nunley, PE, Owner Date
Attachments:
1. Exhibit A - Scope of Services and Fee Schedule
2. Exhibit B - Insurance Requirements
3. Exhibit C - Disclosure of Conflict of Interest
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08 11/2/2023
EXHIBIT A
PROFESSIONAL DESIGN SERVICES
CONSULTANT SCOPE OF WORK AND FEE SCHEDULE
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08 Attachment 1
Scope of Work
1 TASK GROUP 100
Project Management, Meetings
and QA/QC
Task 101 I Project Management and QA/QC
Overall project management, which includes
supervision of in-house staff, planning and
monitoring of contract budget and schedule, and
coordination with the City will be conducted by the
Project Manager.
Task 102 I QA/QC
MKN will provide a senior technical review and
implement our quality assurance and quality
control (QA/QC) measures throughout the project.
Task 103 I Meetings
MKN has included the following meetings as part of
this scope of services:
• Kickoff/Workshop Meeting - (PM,PE) in-person
meeting to review the project scope, schedule
and budget. MKN will also discuss the following
items:
• Previous assessment and inspection report
findings
• Possible project alternatives for this fiscal year
• Findings of current code requirements for
Tank No, 3 including foundation condition,
anchorage overturning free board sloshing and
stress on walls.
• Tank coating testing to be performed
• Desired personnel safety features
• Cathodic Protection
• Progress Review Meetings - (PM,PE) Progress
reviews by MS Teams.
• Draft Construction Documents Review Meeting
- Review comments on draft Construction
Documents for Tank Rehabilitation Project.
• Capital Improvement Plan Review Meeting -
Review comments on Capital Improvement
Plan developed for future tank projects.
Deliverables
• Meeting Agenda and Minutes (3 meetings)
2 TASK GROUP 200
Preliminary Engineering
Task 201 I Site Visit
Our team (MKN and SSG) will perform a site visit
immediately following the project kickoff/workshop
meeting to make observations of the exterior of
the tanks. While onsite, our team will also meet
with available City staff to further discuss the tank
operations and where staff may have concerns.
MKN will also perform coating tests required for
selection of suitable tank coatings (Tasks 202 and
203).
Task 202 I NACE/ AMPP (Association for
Materials Protection and Performance)
Adhesion Testing
MKN will perform adhesion testing in four (4)
locations on each tank to evaluate the adhesion of
existing coatings and to identify risks associated
with overcoating the existing surfaces. The
recommendations from the inspection will be
summarized in a brief Technical Memorandum for
City review and approval.
• City's overall and long-term goals for
development of the Capital Improvement Plan Deliverables (Task Group 400)
The goal of this meeting will be to determine the
scope of the rehabilitation project to be completed
this fiscal year.
• One (1) electronic PDF copy of the Technical
Memorandum
PROPOSAL FOR THE CITY OF GROVER BEACH FOR CIP PROJECT
#4391 WATER RESERVOIR TANK REHABILITATION DESIGN
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08 DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08 DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08 DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
EXHIBIT B
PROFESSIONAL DESIGN SERVICES
INSURANCE REQUIREMENTS
Without limiting CONSULTANT’S indemnification of CITY, and prior to commencement of Work, CONSULTANT shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY.
General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.
Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
Note: Workers' compensation and employer's liability insurance requirements may be eliminated for certain sole proprietorships, partnerships, or corporations without employees.
Consultant shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.
Umbrella or excess liability insurance. CONSULTANT shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
Other provisions or requirements
Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. CONSULTANT shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONSULTANT, his agents, representatives, employees or subconsultants.
Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or selfinsurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance.
Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’S own insurance or self-insurance shall be called upon to protect it as a named insured.
CITY’S rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’S Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONSULTANT of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.
Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.
Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any crossliability exclusions.
Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONSULTANT, provide the same minimum insurance coverage and endorsements required of CONSULTANT.
CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONSULTANT agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review.
CITY’s right to revise specifications. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the CITY and Consultant may renegotiate CONSULTANT’S compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.
Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’S performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08
EXHIBIT C
PROFESSIONAL DESIGN SERVICE
CITY OF GROVER BEACH
DISCLOSURE OF CONFLICT OF INTEREST
Explanation:
Signature
Date
Name
Company
Address
Additional page(s) attached.
City, State, Zip
YES* NO
1 Are you currently in litigation with the City of Grover Beach or any of its agents?
2 Do you represent any firm, organization or person who is in litigation with the City of Grover Beach?
3 Do you currently represent or perform work for any clients who do business with the City of Grover Beach?
4 Are you or any of your principals, managers or professionals, owners or investors in a business which does business with the City of Grover Beach, or in a business which is in litigation with the City of Grover Beach? 5 Are you or any of your principals, managers or professionals, related by blood or marriage to any City of Grover Beach employee who has any significant role in the subject matter of this service? 6 Do you or any of your subcontractors have, or expect to have, any interest, direct or indirect, in any other contract in connection with this Project? * If the answer to any question is yes, please explain in full below.
DocuSign Envelope ID: 9378C90D-60F8-49EF-A1E3-F7C0F74C4F08 X
X
Arroyo Grande, CA 93421
MKN
N/A
PO Box 1604
11/2/2023
X
Michael Nunley
X
X
Agenda Item No. 12
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: November 13, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Jim Munro, Police Commander
John Peters, Chief of Police
SUBJECT: Resolution to Authorize Acquisition of Six New Police Patrol Vehicles and Equipment
RECOMMENDATION
Adopt the Resolution authorizing the City Manager to enter into a five-year lease agreement with Government Capital Corporation to finance the purchase of six new patrol vehicles and emergency equipment.
BACKGROUND
As part of the FY 2023-25 budget development process, staff identified a need for six new patrol vehicles with emergency equipment. The FY 2023-25 budget adopted by the Council approved funding for these vehicle and equipment replacements through a lease agreement that would finance the police fleet needs over a multi-year period. Staff worked with multiple vendors and identified a total cost of six new patrol vehicles and emergency equipment to be $644,254.
Staff has identified Government Capital Corporation (GCC), a municipal leasing corporation, as the financier capable of providing a competitive financing plan for the police fleet project. The City has used the financing services from GCC to finance communications equipment and vehicle fleet purchases in the recent past. The financing plan is a municipal lease-purchase agreement shown in Attachment 2 that will cost $153,506.89 annually for five years with the first payment due in the spring 2025 in FY 2024-25. With the interest rate of 5.4%, the total repayment will be $767,534.45.
This lease does not have a prepayment penalty which will allow the city to pay it off sooner which would result in savings on the interest rate.
Staff recommend the Council authorize the City Manager to enter into an agreement with Government Capital Corporation to finance the purchase of six new patrol vehicles, the associated emergency equipment for the vehicles, and patrol vehicle computer systems.
FISCAL IMPACT
There is no fiscal impact associated with this action during the current fiscal year. The fiscal impact in the FY 2024-25 operating budget and annual budgets for the four following fiscal years will be $153,506.89 per year.
ALTERNATIVES
The Council has the following alternatives to consider:
Staff Report: Acquisition of Six New Police Patrol Vehicles and Equipment Page 2 November 13, 2023
1. Adopt the Resolution authorizing the City Manager to enter into an agreement with Government Capital Corporation to finance the purchase of six new patrol vehicles and emergency equipment; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution
2. Government Capital Corporation Draft Lease
Attachment 1
RESOLUTION NO. 23-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE
PURCHASE AGREEMENT WITH GOVERNMENT CAPITAL CORPORATION
WHEREAS, the Police Department’s patrol fleet is in need of new six patrol vehicles, and emergency equipment to meet existing and future emergency response needs of the City; and WHEREAS, the City desires to enter into a Lease-Purchase Agreement by and between the City of Grover Beach and Government Capital Corporation, for the purpose of financing six patrol vehicles and emergency equipment; and
WHEREAS, the City desires to designate this Agreement as a "qualified tax exempt obligation" of the City of Grover Beach for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended; and
WHEREAS, that should the need arise, if applicable, the City of Grover Beach will use loan proceeds for reimbursement of expenditures related to the Property, within the meaning of Treasury Regulation section 1.150-2, as promulgated under Internal Revenue Code of 1986, as amended; and
WHEREAS, the City desires to designate Matthew Bronson, City Manager, as the authorized signer of the Lease Purchase Agreement, by and between the City of Grover Beach and Government Capital Corporation as well as any other ancillary exhibit, certificate, or documentation needed for the Agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does hereby authorize the City Manager of the City of Grover Beach to execute the LeasePurchase on behalf of the City.
On motion by ______________, second by ____________, and on the following roll call vote, to wit:
AYES: Council Member –
NOES: Council Member –
ABSENT: Council Member –
ABSTAIN: Council Member –
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Meeting of the City Council of the City of Grover Beach, California, this 13th day of November, 2023. ** D R A F T **
___________________________________
KAREN BRIGHT, MAYOR
ATTEST:
______________________________
WENDI SIMS, CITY CLERK
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
THIS CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT No. (hereafter referred to as "Agreement") dated as of November 30, 2023 by and between Government Capital Corporation, a Texas corporation (herein referred to as "Lessor"), and City of Grover Beach, a political subdivision or agency of the State of California (hereinafter referred to as "Lessee").
WITNESSETH: In consideration of the mutual covenants and conditions hereinafter set forth, the parties hereto agree as follows:
1. Term and Payments. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the property described in Exhibit A hereto (hereinafter, with all replacement parts, substitutions, proceeds, increases, additions, accessions, repairs and accessories incorporated therein or affixed thereto, referred to as the "Property") for the amounts to be paid in the sums (the "Lease Payments") and on the dates (the "Lease Payment Dates") set forth in Exhibit B hereto. Except as specifically provided in Section 2 hereof, the obligation of the Lessee to make the Lease Payments called for in Exhibit B hereto shall be absolute and unconditional in all events and shall not be subject to any set-off, defense, counterclaim or recoupment for any reason. The term of the lease hereunder shall commence upon the dated date of the lease and shall continue until the end of the Lessee's current fiscal period and thereafter for such additional fiscal periods as are necessary to complete the anticipated total lease term as set forth in Exhibit B, unless earlier terminated as provided herein.
2. Renewal and Non-Appropriation. Lessee agrees that it will take all necessary steps and make timely requests for the appropriation of funds to make all Lease Payments called for under Exhibit B, and use its best efforts and take all steps to cause such appropriations to be made. In the event that (i) funds for the succeeding fiscal period cannot be obtained, (ii)Lessee has exhausted all legally available means for making payment called for under this Agreement, (iii) Lessee has invoked and diligently pursued all legal procedures by which payment called for under this agreement may be made, (iv) such failure to obtain funds has not resulted from any act or failure to act of Lessee, (v) Lessee has not acquired, and has no intent to acquire during the subsequent fiscal period, items of property having functions similar to those the Property or which provide similar benefits to Lessee, and (vi) no funds have been appropriated for the acquisition of such property, Lessee may terminate this Agreement at the end of any fiscal period during the payment schedule set forth in Exhibit B by giving notice to Lessor or its successors at least sixty (60) days prior to the first day of such fiscal period for which appropriations cannot be made. Such failure to obtain proper appropriation and approval of the full amount of funds necessary to make required payments hereunder during any fiscal period subsequent to the current fiscal period shall terminate all Lessee's right, title and interest in and obligations under this Agreement and to all the Property, effective on the last day of the last fiscal period for which appropriation or approval was properly obtained.
3. Taxes. In addition to the Lease Payments to be made pursuant to Section 1 hereof, Lessee agrees to indemnify and hold Lessor harmless from and against and to pay Lessor, as additional rent, on demand, an amount equal to all licenses, assessments, sales, use, real or personal property, gross receipts or other taxes, levies, imposts, duties or charges, if any, together with any penalties, fines, or interest thereon imposed against or on Lessor, Lessee or the Property by any governmental authority upon or with respect to the Property or the purchase, ownership, rental, possession, operation, return or sale of, or receipt of payments for, the Property, except any Federal or state income taxes, if any, payable by Lessor. Lessee may contest any such taxes prior to payment provided such contest does not involve any risk of sale, forfeiture or loss of the Property or any interest therein.
4. Lessee's Covenants and Representations. Lessee covenants and represents as follows:
(a) Lessee represents, and will provide an opinion of its counsel to the effect that, it has full power and authority to enter into this Agreement which has been duly authorized, executed, and delivered by Lessee and is a valid and binding obligation of Lessee enforceable in accordance with its terms, and all requirements for execution, delivery and performance of this Agreement have been, or will be, complied with in a timely manner;
(b) All Payments hereunder have been, and will be, duly authorized and paid when due out of funds then on hand and legally available for such purposes; Lessee will, to the extent permitted by State law and other terms and conditions of this Agreement, include in its budget for each successive fiscal period during the term of this Agreement a sufficient amount to permit Lessee to discharge all of its obligations hereunder, and Lessee has budgeted and available for the current fiscal period sufficient funds to comply with its obligations hereunder;
(c) There are no pending or threatened lawsuits or administrative or other proceedings contesting the authority for, authorization of performance of, or expenditure of funds pursuant to, this Agreement; (d) Information supplied and statements made by Lessee in any financial statement or current budget prior to or contemporaneously with the Agreement are true and correct; (e) Lessee has an immediate need for, and expects to make immediate use of, substantially all the Property, which need is not temporary or expected to diminish in the foreseeable future; specifically Lessee will not give priority or parity in the appropriation of funds for the acquisition or use of any additional property for purposes or functions similar to those of the Property. (f) There are no circumstances presently affecting the Lessee that could reasonably be expected to alter its foreseeable need for the Property or adversely affect its ability or willingness to budget funds for the payment of sums due hereunder; and
(g) Lessee's right to terminate this Agreement as specified in Section 2 hereof was not an independently bargained for consideration, but was included solely for the purpose of complying with the requirements of the laws of the State in which Lessee is located.
(h) No lease, rental agreement, lease-purchase agreement, payment agreement or contract for purchase to which Lessee has been a party at any time during the past ten (10) years has been terminated by Lessee as a result of insufficient funds being appropriated in any Fiscal Year. No event has occurred which would constitute an event of default under any debt, revenue bond or obligation which Lessee has issued during the past ten (10) years. (i) Lessee will pay the Lease Payment Due by check, wire transfer, or ACH only.
Attachment 2
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
5. Use and Licenses. Lessee shall pay and discharge all operating expenses and shall cause the Property to be operated by competent persons only. Lessee shall use the Property only for its proper purposes and will not install, use, operate or maintain the Property improperly, carelessly, or in violation of any applicable law, ordinance, rule or regulation of any governmental authority, or in a manner contrary to the nature of the Property or the use contemplated by its manufacturer. Lessee shall keep the property at the location stated on the Certificate of Acceptance executed by Lessee upon delivery of the Property until Lessor, in writing, permits its removal, and the Property shall be used solely in the conduct of the Lessee's operations. Lessee shall obtain, at its expense, all registrations, permits and licenses, if any, required by law for the installation and operation of the Property. Any license plates used on the Property shall be issued in the name of the Lessee. If a certificate of title is issuable with respect to the Property, it shall be delivered to the Lessor showing the interest of the Lessor.
6. Maintenance. Lessor shall not be obligated to make any repairs or replacements. At its own expense, Lessee shall service, repair and maintain the Property in as good condition, repair, appearance and working order as when delivered to Lessee hereunder, ordinary wear and tear from proper use alone excepted, and shall replace any and all parts thereof which may from time to time become worn out, lost, stolen, destroyed, or damaged beyond repair or rendered unfit for intended use, for any reason whatsoever, all of which replacements shall be free and clear of all liens, encumbrances and claims of others and shall become part of the Property and subject to this Agreement. Lessor may, at its option, discharge such costs, expenses and insurance premiums necessary for the repair, maintenance and preservation of the Property, and all sums so expended shall be due from Lessee in addition to rental payments hereunder.
7. Alterations.
(a) Lessee may, at its own expense, install or place in or on, or attach or affix to, the Property such equipment or accessories as may be necessary or convenient to use the Property for its intended purposes provided that such equipment or accessories do not impair the value or utility of the Property. All such equipment and accessories shall be removed by Lessee upon termination of this Agreement, provided that any resulting damage shall be repaired at Lessee's expense. Any such equipment or accessories not removed shall become the property of Lessor. (b) Without the written consent of Lessor, Lessee shall not make any other alterations, modifications or improvements to the Property except as required or permitted hereunder. Any other alterations, modifications or improvements to the Property shall immediately become part of the Property, subject to the provisions hereof. Without the prior written consent of Lessor, Lessee shall not affix or attach any of the Property to any real property. The Property shall remain personal property regardless of whether it becomes affixed or attached to real property or permanently rests upon any real property or any improvement thereon.
8. Liens. Lessee shall not directly or indirectly create, incur, assume or suffer to exist any mortgage, security interest, pledge, lien, charge, encumbrance or claim on or with respect to the Property, title thereto or any interest therein, except the respective rights of Lessor and Lessee hereunder.
9. Damage to or Destruction of Property. Lessee shall bear the entire risk of loss, damage, theft or destruction of the Property from any and every cause whatsoever, and no loss, damage, destruction or other event shall release Lessee from the obligation to pay the full amount of the rental payments or from any other obligation under this Agreement. In the event of damage to any item of the Property, Lessee will immediately place the same in good repair, with the proceeds of any insurance recovery applied to the cost of such repair. If Lessor determines that any item of Property is lost, stolen, destroyed or damaged beyond repair, Lessee, at the option of Lessee, will either (a) replace the same with like property in good repair or (b) on the next Lease Payment Date, pay Lessor (i) all amounts then owed by Lessee to Lessor under this Agreement, including the Lease Payment due on such date, and (ii) an amount equal to the applicable Option to Purchase Value set forth in Exhibit B.
10. Insurance. Lessee shall either be self-insured with regard to the Property or shall purchase and maintain insurance with regard to the Property. Lessee shall indicate on each Certificate of Acceptance executed in relation to this Agreement its election to be self-insured or company insured with regard to the Property listed on that Certificate of Acceptance. Whether Lessee is selfinsured or company insured, Lessee shall, for the term of this Agreement, at its own expense, provide comprehensive liability insurance with respect to the Property, insuring against such risks, and such amounts as are customary for lessees of property of a character similar to the Property. In addition, Lessee shall, for the term of this Agreement, at its own expense, provide casualty insurance with respect to the Property, insuring against customary risks, coverage at all times not less than the amount of the unpaid principal portion of the Lease Payments required to be made pursuant to Section 1 as of the last preceding Payment Date specified in Exhibit B on which a Lease Payment was made. If insurance policies are provided with respect to the Property, all insurance policies shall be with insurers authorized to do business in the State where the Property is located and shall name both Lessor and Lessee as insureds as their respective interest may appear. Insurance proceeds from casualty losses shall be payable solely to the Lessor, subject to the provisions of Section 9. Lessee shall, upon request, deliver to Lessor evidence of the required coverages together with premium receipts, and each insurer shall agree to give Lessor written notice of non-payment of any premium due and ten (10) days notice prior to cancellation or alteration of any such policy. Lessee shall also carry and require any other person or entity working on, in or about the Property to carry workmen's compensation insurance covering employees on, in or about the Property. In the event Lessee fails, for any reason, to comply with the requirements of this Section, Lessee shall indemnify, save harmless and, at Lessee's sole expense, defend Lessor and its agents, employees, officers and directors and the Property against all risk of loss not covered by insurance.
11. Indemnification. Lessor and Lessee shall indemnify and hold harmless the other for any breach of this agreement.
The prevailing party shall be entitled to recover reasonable attorneys' fees and costs arising out of any dispute as to the terms or performance of this agreement.
12. No Warranty. ALL WARRANTIES, PROMISES AND SERVICE AGREEMENTS, IF ANY, RELATING TO THE PROPERTY THAT THE MANUFACTURERS OR THE PARTY WHO SUPPLIED THE PROPERTY TO LESSOR (THE “VENDOR”) HAVE MADE TO LESSOR IN CONNECTION WITH OR AS PART OF THE CONTRACT BY WHICH LESSOR ACQUIRED THE PROPERTY ARE HEREBY ASSIGNED TO LESSEE.
Lessee may communicate with Vendor and receive an accurate and complete statement of all such warranties, promises and service agreements, if any. All claims or actions on any warranty so assigned shall be made or prosecuted by Lessee, at its sole expense, upon prior written notice to Lessor. Lessor may, but shall have no obligation whatsoever to participate in such claim or action on such warranty, at Lessor’s expense. Any recovery under such a warranty shall be made payable jointly to Lessee and Lessor. Lessee acknowledges that Lessee has selected the Vendor and that Lessee has directed Lessor to acquire the Property from Vendor in connection with this Agreement. Lessee further acknowledges that this Agreement is a “Finance Lease” within the meaning of the Uniform Commercial Code and that Lessee is entitled to the Vendor’s warranties and promises described above, if any. LESSOR HAS
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
MADE AND MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AND ASSUMES NO OBLIGATION WITH RESPECT TO
THE TITLE, MERCHANTABILITY, CONDITION, QUALITY OR FITNESS OF THE PROPERTY DESCRIBED IN EXHIBIT A FOR ANY PARTICULAR PURPOSE OR THE CONFORMITY OF THE PROPERTY TO ANY SPECIFICATION OR PURCHASE ORDER, OR AS TO THE PROPERTY’S DESIGN, DELIVERY, INSTALLATION OR OPERATION. All such risks shall be borne by Lessee without in any way excusing Lessee from its obligations under this Agreement, and Lessor shall not be liable to Lessee for any damages on account of such risks.
13. Option to Purchase. Provided Lessee has complied with the terms and conditions of this Agreement, Lessee shall have the option to purchase not less than all of the Property which is then subject to this Agreement, "as is" at the payment date, for the Option to Purchase Values set forth in Exhibit B by giving written notice to Lessor not less than sixty (60) days prior to the date specified in Exhibit B for the exercise of such option; provided that upon Lessee's timely payment of all Lease Payments specified in Exhibit B, Lessee shall be deemed to have properly exercised its option to purchase the Property and shall be deemed to have acquired all of Lessor's right, title and interest in and to the Property, free of any lien, encumbrance or security interest except such liens, encumbrances or security interest as may be created, or permitted and not discharged, by Lessee but without other warranties.
Payment of the applicable Option to Purchase Value shall occur on the applicable Lease Payment Date specified in Exhibit B hereto, at which time Lessor shall, unless not required hereunder, deliver to Lessee a quitclaim bill of sale transferring Lessor's interest in the Property to Lessee free from any lien, encumbrance or security interest except such as may be created, or permitted and not discharged, by Lessee but without other warranties. Upon Lessee's actual or constructive payment of the Option to Purchase Value and Lessor's actual or constructive delivery of a quitclaim bill of sale covering the Property, this Agreement shall terminate except as to obligations or liabilities accruing hereunder prior to such termination.
14. Default and Lessor's Remedies.
(a) The occurrence of one or more of the following events shall constitute an Event of Default, whether occurring voluntarily or involuntarily, by operation of law or pursuant to any order of any court or governmental agency:
(1) Lessee fails to make any payment hereunder when due or within ten (10) days thereafter; (2) Lessee fails to comply with any other covenant, condition or agreement of Lessee hereunder for a period of the ten (10) days after notice thereof;
(3) Any representation or warranty made by Lessee hereunder shall be untrue in any material respect as of the date made;
(4) Lessee makes, permits or suffers any unauthorized assignment, transfer or other disposition of this Agreement or any interest herein, or any part of the Property or any interest therein; or (5) Lessee becomes insolvent; or admits in writing its inability to pay its debts as they mature; or applies for, consents to or acquiesces in the appointment of a trustee, receiver or custodian for the Lessee or a substantial part of its property; or, in the absence of such application, consent or acquiescence, a trustee, receiver or custodian is appointed for Lessee or a substantial part of its property and is not discharged within sixty (60) days; or any bankruptcy, reorganization, debt arrangement, moratorium, or any proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding is instituted by or against Lessee and, if instituted against Lessee, is consented to or acquiesced in by Lessee or is not dismissed within sixty (60) days. (b) Upon the occurrence of any Event of Default specified herein, Lessor may, at its sole discretion, subject to Section 2 hereof, exercise any or all of the following remedies:
(1) Enforce this Agreement by appropriate action to collect those amounts due hereunder as lease payments for the fiscal year in which the default occurs or, in the event of a default continuing from one fiscal year into a subsequent fiscal year(s), to immediately collect as due the lease payments for each year(s) of the continuing default. Under no circumstance shall Lessor, upon default by Lessee, accelerate or collect as due any future annual lease payments for future years remaining, if any, under this Agreement. Require Lessee to perform its other obligations hereunder in which event Lessee shall be liable for those costs and expenses reasonably incurred by Lessor in securing Lessee’s performance of this Agreement. (2) Take possession of the Property, without demand or notice and without court order or any process of law, and remove and relet the same for Lessee's account, in which event Lessee waives any and all damages resulting therefrom and shall be liable for all costs and expenses incurred by Lessor in connection therewith and the difference, if any, between the amounts to be paid pursuant to Section 1 hereof and the amounts received and to be received by Lessor in connection with any such reletting; (3) Terminate this Agreement and repossess the Property, in which event Lessee shall be liable for any amounts payable hereunder through the date of such termination and all costs and expenses incurred by Lessor in connection therewith;
(4) Sell the Property or any portion thereof for Lessor's account at public or private sale, for cash or credit, without demand or notice to Lessee of Lessor's intention to do so, or relet the Property for a term and a rental which may be equal to, greater than or less than the rental and term provided herein. If the proceeds from any such sale or rental payments received under a new agreement made for the periods prior to the expiration of this Agreement are less than the sum of (i) the costs of such repossession, sale, relocation, storage, reconditioning, reletting and reinstallation (including but not limited to reasonable attorneys' fees), (ii) the unpaid principal balance derived from Exhibit B as of the last preceding Lease Payment Date specified in Exhibit B, and (iii) any past due amounts hereunder (plus interest on such unpaid principal balance at the rate specified in Section 19 hereof, prorated to the date of such sale), all of which shall be paid to Lessor, Lessor shall retain all such proceeds and Lessee shall remain liable for any deficiency; or
(5) Pursue and exercise any other remedy available at law or in equity, in which event Lessee shall be liable for any and all costs and expenses incurred by Lessor in connection therewith. "Costs and expenses," as that term is used in this Section 14, shall mean, to the extent allowed by law: (i) reasonable attorneys' fees if this Agreement is referred for collection to an attorney not a salaried employee of Lessor or the holder of this Agreement; (ii) court costs and disbursements including such costs in the event of any action necessary to secure possession of the Property; and (iii) actual and reasonable out-of-pocket expenses incurred in connection with any repossession or foreclosure, including costs of storing, reconditioning and reselling the Property, subject to the standards of good faith and commercial reasonableness set by the applicable Uniform Commercial Code. Lessee waives all rights under all exemption laws.
(6) Under no circumstances shall Lessee be liable under this subsection 14 (b) for any amount in excess of the sum appropriated pursuant to Section 1 hereof for the previous and current fiscal years, less all amounts previously due and paid
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
during such previous and current fiscal years from amounts so appropriated.
15. Termination. Unless Lessee has properly exercised its option to purchase pursuant to Section 13 hereof, lessee shall, upon the expiration of the term of this Agreement or any earlier termination hereof pursuant to the terms of this Agreement, deliver the Property to Lessor unencumbered and in at least as good condition and repair as when delivered to Lessee, ordinary wear and tear resulting from proper use alone excepted, by loading the Property, at Lessee's sole expense, on such carrier, or delivering the Property to such location, as Lessor shall provide or designate at or within a reasonable distance from the general location of the Property. If Lessee fails to deliver the Property to Lessor, as provided in this Section 15, on or before the date of termination of this Agreement, Lessee shall pay to Lessor upon demand, for the hold-over period, a portion of the total payment for the applicable period as set forth in Exhibit B prorated from the date of termination of this Agreement to the date Lessee either redelivers the Property to Lessor or Lessor repossesses the Property. Lessee hereby waives any right which it now has or which might be acquired or conferred upon it by any law or order of any court or other governmental authority to terminate this Agreement or its obligations hereunder, except in accordance with the express provisions hereof.
16. Assignment. Without Lessor's prior written consent, Lessee will not either (i) assign, transfer, pledge, hypothecate, grant any security interest in or otherwise dispose of this Agreement or the Property or any interest in this Agreement or the Property; or (ii) sublet or lend the Property or permit it to be used by anyone other than Lessee or Lessee's employees. Lessor may assign its rights, title and interest in and to this Agreement, the Property and any other documents executed with respect to this Agreement and/or grant or assign a security interest in this Agreement and the Property, in whole or in part. Any such assignees shall have all of the rights of Lessor under this Agreement. Subject to the foregoing, this Agreement inures to the benefit of and is binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. No assignment or reassignment of any of Lessor's rights, title or interest in this Agreement or the Property shall be effective with regard to Lessee unless and until Lessee shall have received a copy of the document by which the assignment or reassignment is made, disclosing the name and address of such assignee.
No further action will be required by Lessor or by Lessee to evidence the assignment. During the term of this Agreement, Lessee shall keep a complete and accurate record of all such assignments in form necessary to comply with the United States Internal Revenue Code of 1986, Section 149 (a), and the regulations, proposed or existing, from time to time promulgated thereunder.
17. Personal Property. The Property is and shall at all times be and remain personal property.
18. Title. Upon acceptance of the Property by Lessee hereunder, Lessee shall have title to the Property during the term of this Agreement; however, in the event of (i) an Event of Default hereunder and for so long as such Event of Default is continuing, or (ii) termination of this Agreement pursuant to the provisions of Section 2 hereof, title shall be reverted immediately in and shall revert to Lessor free of any right, title or interest of Lessee unless Lessor elects otherwise.
19. Lessor's Right to Perform for Lessee. If Lessee fails to make any payment or perform or comply with any of its covenants or obligations hereunder, Lessor may, but shall not be required to, make such payment or perform or comply with such covenants and obligations on behalf of Lessee, and the amount of any such payment and the expenses (including but not limited to reasonable attorneys' fees) incurred by Lessor in performing or complying with such covenants and obligations, as the case may be, together with interest thereon at the highest lawful rate, shall be payable by Lessee upon demand.
20. Interest on Default. If Lessee fails to pay any Lease Payment specified in Section 1 hereof within ten (10) days after the due date thereof, Lessee shall pay to Lessor interest on such delinquent payment from the due date until paid at the highest lawful rate.
21. Notices. Any notices to be given or to be served upon any party hereto in connection with this Agreement must be in writing and may be given by certified or registered mail, and shall be deemed to have been given and received forty-eight (48) hours after a registered or certified letter containing such notice, postage prepaid, is deposited in the United States mail, and if given otherwise shall be deemed to have been given when delivered to and received by the party to whom it is addressed. Such notice shall be given to the parties at their respective addresses designated on the signature page of this Agreement or at such other address as either party may hereafter designate.
22. Security Interest. As security for Lessee's covenants and obligations hereunder, Lessee hereby grants to Lessor, and its successors, a security interest in the Property, all accessions thereto and proceeds there from, and, in addition to Lessor's rights hereunder, all of the rights and benefits of a secured party under the Uniform Commercial Code as in effect from time to time hereafter in the State in which the Property is located or any other State which may have jurisdiction over the Property. Lessee agrees to execute, acknowledge and deliver to Lessor in recordable form upon request financing statements or any other instruments with respect to the Property or this Agreement considered necessary or desirable by Lessor to perfect and continue the security interest granted herein in accordance with the laws of the applicable jurisdiction. Lessee hereby authorizes Lessor or its agent or assigns to sign and execute on its behalf any and all necessary UCC-1 forms to perfect the Purchase Money Security Interest herein above granted to Lessor.
23. Tax Exemption. Lessee certifies that it does reasonably anticipate that not more than $10,000,000 of "qualified tax-exempt obligations", as that term is defined in Section 265 (b) 3 (D) of the Internal Revenue Code of 1986 ("the Code"), will be issued by it and any subordinate entities during 2022. Further, Lessee designates this issue as comprising a portion of the $10 million in aggregate issues to be designated as "qualified tax exempt obligations" eligible for the exception contained in Section 265 (b) 3 (D) of the Code allowing for an exception to the general rule of the Code which provides for a total disallowance of a deduction for interest expense allocable to the carrying of tax exempt obligations.
24. Continuing Disclosure. Specifically and without limitation, Lessee agrees to provide audited financial statements, prepared by a certified public accountant not later than six (6) months after and as of the end of each fiscal year. Periodic financial statements shall include a combined balance sheet as of the end of each such period, and a combined statement of revenues, expenditures and changes in fund balances, from the beginning of the then fiscal year to the end of such period. These reports must be certified as correct by one of Lessee's authorized agents. If Lessee has subsidiaries, the financial statements required will be provided on a consolidated and consolidation basis.
25. Miscellaneous.
(a) Lessee shall, whenever requested, advise Lessor of the exact location and condition of the Property and shall
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
give the Lessor immediate notice of any attachment or other judicial process affecting the Property, and indemnify and save Lessor harmless from any loss or damage caused thereby. Lessor may, for the purpose of inspection, at all reasonable times enter upon any job, building or place where the Property and the books and records of the Lessee with respect thereto are located. (b) Lessee agrees to equitably adjust the payments payable under this Agreement if there is a determination for any reason that the interest payable pursuant to this Agreement (as incorporated within the schedule of payments) is not excludable from income in accordance with the Internal Revenue Code of 1986, as amended, such as to make Lessor and its assigns whole. (c) Time is of the essence. No covenant or obligations hereunder to be performed by Lessee may be waived except by the written consent of Lessor, and a waiver of any such covenant or obligation or a forbearance to invoke any remedy on any occasion shall not constitute or be treated as a waiver of such covenant or obligation as to any other occasion and shall not preclude Lessor from invoking such remedy at any later time prior to Lessee's cure of the condition giving rise to such remedy. Lessor's rights hereunder are cumulative and not alternative.
(d) This Agreement shall be construed in accordance with, and governed by, the laws of the State in which the Property is located.
(e) This Agreement constitutes the entire agreement between the parties and shall not be modified, waived, discharged, terminated, amended, altered or changed in any respect except by a written document signed by both Lessor and Lessee. (f) Any term or provision of this Agreement found to be prohibited by law or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without, to the extent reasonably possible, invalidating the remainder of this Agreement.
(g) The Lessor hereunder shall have the right at any time or times, by notice to Lessee, to designate or appoint any person or entity to act as agent or trustee for Lessor for any purposes hereunder. (h) All transportation charges shall be borne by Lessee. Lessee will immediately notify Lessor of any change occurring in or to the Property, of a change in Lessee's address, or in any fact or circumstance warranted or represented by Lessee to Lessor, or if any Event of Default occurs.
(i) Use of the neuter gender herein is for purposes of convenience only and shall be deemed to mean and include the masculine or feminine gender whenever and wherever appropriate. (j) The captions set forth herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.
(k) Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns, where permitted by this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the _____ day of ___________________in the year 2022.
Lessor: Government Capital Corporation
________________________________
Authorized Signature
345 Miron Dr.
Southlake, TX 76092
Witness Signature:__________________________
Print Name: _______________________________
Print Title: ________________________________
Lessee: City of Grover Beach
________________________________
Matthew Bronson
City Manager
154 E Eighth Street
Grover Beach, CA 93433
Witness Signature:__________________________
Print Name: _______________________________
Print Title: ________________________________
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
EXHIBIT A
DESCRIPTION OF PROPERTY
CALIFORNIA MUNICIPAL LEASE AGREEMENT No. (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach Dated as of November 30, 2023
QTY DESCRIPTION
(6) POLICE PURSUIT VEHICLES as follows:
PROPERTY LOCATION:
Grover Beach Police Department,
711 Rockaway Ave.
Grover Beach, CA 93433
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
EXHIBIT B DRAFT 11-08-2023
>> SCHEDULE OF PAYMENTS & OPTION TO PURCHASE PRICE <<
Municipal Lease-Purchase Agreement No. ("THE AGREEMENT")
BY AND BETWEEN
Lessor: Government Capital Corporation and
the Lessee: City of Grover Beach
Schedule dated as of November 30, 2023
PMT PMT DATE TOTAL INTEREST PRINCIPAL OPTION TO PURCHASE NO. MO. DAY YR PAYMENT PAID PAID after pmt on this line 1 11/20/2024 153,506.89 35,551.22 117,955.67 N/A
2 11/20/2025 153,506.89 29,169.82 124,337.07 N/A
3 11/20/2026 153,506.89 22,443.19 131,063.70 283,782.64 4 11/20/2027 153,506.89 15,352.64 138,154.25 145,628.39 5 11/20/2028 153,506.89 7,878.50 145,628.39 1.00
Grand Totals 767,534.45 110,395.37 657,139.08
Interest Rate: 5.41 %
****This Schedule is subject to current Market Indexing if closing occurs after the above Date**** Accepted By Lessee: _______________________________________ Matthew Bronson, City Manager
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
INCUMBENCY, INSURANCE, AND ESSENTIAL USE CERTIFICATES
CALIFORNIA MUNICIPAL LEASE AGREEMENT No. (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach Dated as of November 30, 2023
I, Wendi Sims , do hereby certify that I am the duly elected or appointed and acting City Clerk (Keeper of the Records), of City of Grover Beach, a political subdivision or agency duly organized and existing under the laws of the State of California that I have custody of the records of such entity, and that, as of the date hereof, the individual(s) named below are the duly elected or appointed officer(s) of such entity holding the office(s) set forth opposite their respective name(s). I further certify that (i) the signature(s) set opposite their respective name(s) and title(s) are their true and authentic signature(s), and (ii) such officers have the authority on behalf of such entity to enter into that certain California Municipal Lease-Purchase Agreement dated as of, November 30, 2023 between such entity and Government Capital Corporation.
Name Title Signature
Matthew Bronson City Manager
IN WITNESS WHEREOF, I have duly executed this certificate hereto this _______day of ____________________, 2022.
By: ____________________________
Wendi Sims, City Clerk
Lessee certifies that property and liability insurance, if applicable, have been secured in accordance with the Agreement and such coverage will be maintained in full force for the term of the Agreement. "Lessor or its Assigns" should be designated as loss payee until Lessee is notified, in writing, to substitute a new loss payee. The following information is provided about insurance:
INSURANCE COMPANY/AGENT'S:
Name: __________________________________________________________________________________________________ Address: ________________________________________________________________________________________________ Email Address: ___________________________________________________________________________________________ Phone Number: ________________________ Policy Number: _____________________________________________________ I, Matthew Bronson, City Manager, of City of Grover Beach ("Lessee"), hereby certify that the Equipment, to be leased to the undersigned under the certain Lease Agreement, dated as of November 30, 2023, between such entity and Government Capital Corporation ("Lessor"), will be used by the undersigned Lessee for the following purpose: (PLEASE FILL OUT PRIMARY USE BELOW) PRIMARY USE: ____________________________________________________________________________________________ The undersigned hereby represents that the use of the Equipment is essential to its proper, efficient and economic operation.
IN WITNESS WHEREOF, I have set my hand this ________ day of _____________________, 2022.
By Lessee:
____________________________________________
Matthew Bronson, City Manager
For Lessee: City of Grover Beach
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
[to be retyped on letterhead of lessee's counsel]
Government Capital Corporation
Attention Documentation Department
345 Miron Drive
Southlake, TX 76092
RE: California Municipal Lease-Purchase Agreement No..
Dear Lessor,
I have acted as Counsel to City of Grover Beach, with respect to that certain Lease Purchase Agreement No., by and between Government Capital Corporation as Lessor and City of Grover Beach as Lessee. I have reviewed the Agreement and such other documents, records and certificates of Lessee and appropriate officials as I have deemed relevant and am of the opinion that:
1. The Lessee is a political subdivision or agency of the State of California with the requisite power and authority to incur obligations, the interest on which is exempt from taxation by virtue of Section 103(a) of the Internal Revenue Code of 1986;
2. The execution, delivery and performance by the Lessee of the Agreement have been duly authorized by all necessary action on the part of the Lessee;
3. The Agreement constitutes a legal, valid and binding obligation of the Lessee enforceable in accordance with its terms.
4. The above opinions may be relied upon by the Lessee, Lessor, or its Assigns.
Sincerely,
Attorney at Law
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
RESOLUTION
A RESOLUTION REGARDING A CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT FOR THE PURPOSE OF FINANCING “POLICE PURSUIT VEHICLES”.
WHEREAS, City of Grover Beach desires to enter into that certain California Municipal Lease-Purchase Agreement dated as of November 30, 2023, by and between City of Grover Beach and Government Capital Corporation, for the purpose of financing “Police Pursuit Vehicles”. The City desires to designate this Agreement as a "qualified tax exempt obligation" of the City for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended. The City desires to designate the City Manager or the City Manager’s designee as an authorized signer of the Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF THE CITY OF GROVER BEACH:
Section 1. That the City enters into a Lease-Purchase Agreement with Government Capital Corporation for the purpose of financing “Police Pursuit Vehicles”.
Section 2. That the Lease Purchase Agreement dated as of November 30, 2023, by and between the City of Grover Beach and Government Capital Corporation is designated by the City as a "qualified tax exempt obligation" for the purposes of Section 265 (b) (3) of the Internal Revenue Code of 1986, as amended.
Section 3. That the City designates the City Manager or the City Manager’s designee as an authorized signer of the Lease-Purchase Agreement dated as of November 30, 2023, by and between the City of Grover Beach and Government Capital Corporation.
Section 4. That he City will use finance agreement proceeds for reimbursement of expenditures related to the Property, within the meaning of Treasury Regulation § 1.150-2, as promulgated under the Internal Revenue Code of 1986, as amended.
This Resolution has been PASSED upon Motion made by Board Member_________________________ seconded by Board Member _______________________ by a vote of ______ Ayes to ______ Nays and is effective this ____________________, 2023.
Lessee: City of Grover Beach Witness Signature:
____________________________________ ___________________________________ Karen Bright
Mayor
Wendi Sims
City Clerk
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
CERTIFICATE OF FINAL ACCEPTANCE
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT No. (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach Dated as of November 30, 2023
1. ACCEPTANCE: In accordance with the Agreement, Lessee hereby certifies that all of the Property described herein (i) has been received by Lessee, (ii) has been thoroughly examined and inspected to the complete satisfaction of Lessee, (iii) had been found by Lessee to be in good operating order, repair and condition, (iv) has been found to be of the size, design, quality, type and manufacture specified by Lessee, (v) has been found to be and is wholly suitable for Lessee's purposes, and (vi) is hereby unconditionally accepted by Lessee, in the condition received, for all purposes of this Agreement.
By Lessee:
__________________________________________
Matthew Bronson, City Manager
For Lessee: City of Grover Beach
ACCEPTED on this the ______ day of ______________________, 2022. ___________________________________________________________________________________________________
2. PROPERTY:
POLICE COMMAND UNIT, SEE ATTACHED EXHIBIT A.
3. USE: The primary use of the Property is as follows (PLEASE FILL OUT PRIMARY USE BELOW) PRIMARY USE: _________________________________________________________________________
4. PROPERTY LOCATION:
Grover Beach Police Department
711 Rockaway Ave.
Grover Beach, CA 93433
5. INVOICING: Invoices shall be sent to the following address, including to whose attention invoices should be directed:
John Peters, Chief of Police
[email protected]
711 Rockaway Ave.
154 E Eighth Street
Grover Beach, CA 93433
6. INSURANCE: Lessee certifies that property and liability insurance have been secured in accordance with the Agreement and such coverage will be maintained in force for the term of the Agreement. Lessor will be designated as loss payee until Lessee is notified, in writing, to substitute a new loss payee.
_____ Company Insured _____ Election to self-insure (in accordance with Section 10 of the Agreement).
7. MAINTENANCE: In accordance with Section 6 of the Agreement, Lessee agrees to, at its own expense, service, repair and maintain the Property for the term of the Agreement as follows:
_____ Maintenance Contract _____ Election to self-maintain
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
ESCROW AGREEMENT
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT No. (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach TAX ID #95-6006383 Dated as of November 30, 2023
THIS ESCROW AGREEMENT (the "Agreement") is made and entered into as of November 30, 2023 ("Agreement Date"), by and among Government Capital Corporation ("Lessor"), City of Grover Beach ("Lessee") and _________________________________ ("Agent").
W I T N E S S E T H:
WHEREAS, Lessor and Lessee have entered into a certain Municipal Lease-Purchase Agreement dated as of November 30, 2023 (the "Lease"), pursuant to which the property more particularly described therein (the "Property") will be leased to the Lessee under the terms stated in the Lease;
WHEREAS, Lessor and Lessee desire to make funding arrangements for the acquisition of the Property, and Agent agrees to serve as escrow agent for such funding and acquisition;
NOW THEREFORE, in consideration of the mutual agreements and covenant herein contained and for other valuable consideration, the parties hereby agree as follows:
1. Agent shall undertake the duties and obligations of escrow agent as set forth in this Agreement. Agent shall not be deemed to be a party to the Lease.
2. Lessor has delivered to Agent the sum of $734,829.00 ("Escrow Amount") for deposit by Agent in the City of Grover Beach Escrow Account (the "Fund"). The Fund will be administered by Agent pursuant to the terms of this Agreement.
3. Deposits in the Fund shall be used to pay for the acquisition of the Property. The Property may be acquired as individual items or as groups of items. Agent shall make disbursements from the Fund in payment for the acquisition of each item or group of items of the Property promptly upon receipt of a properly executed Escrow Disbursement Request Form, in the form attached hereto as “Schedule 1”, for that portion of the acquisition of the Property for which payment is requested. Upon full acquisition of an item or group of items of the Property, any remaining cost of such item or group of items shall be disbursed promptly by the Agent upon receipt of a properly executed Acceptance Certificate and a corresponding Escrow Disbursement Request Form in the form attached hereto as “Schedule 1”, for that portion of the Property for which payment is requested. Payment by Agent shall be to the payee shown on the Escrow Disbursement Request Form.
4. Agent will invest the Fund, as specified by Lessor, in general obligations of the United States or in obligations fully insured by the United States or in certificates of deposit of a bank which is either fully insured by an agency of the federal government or fully collateralized by such federal or federally guaranteed obligations, or in no-load money market mutual funds registered with and regulated by the Securities and Exchange Commission that includes in their investment objectives the maintenance of a stable net asset value of $1 for each share, or Money Market Mutual Funds registered under the Investment Act of 1940. Agent will retain in the Fund all earnings from investment of the Fund until termination of the Fund pursuant to Section 5 hereof. Agent will be entitled to sell or redeem any such investments as necessary to make any distributions required under this Agreement and shall not be liable for any loss resulting from such sale or redemption. In the absence of written investment direction from the Lessor, the Agent shall in and reinvest the amounts in the Fund in Money Market Mutual Funds registered under the Investment Act of 1940.
5. Upon execution of one or more Acceptance Certificates by Lessee and payment of acquisition costs by Agent for all the Property (as confirmed in writing by the Lessor to the Escrow Agent), this Agreement and the Funds shall terminate, and Agent shall transfer to Lessor all remaining sums in the Fund. If not terminated earlier, this Agreement and the Fund shall terminate on ("Termination Date"). In this latter event, interest accrued pursuant to investment of the Fund under the terms of Section 4 hereof and all remaining principal in the Fund shall be transferred by Agent to Lessor; Exhibit “A" attached to the Lease shall thereupon be revised to delete any non-acquired portions of the Property and to substitute an amended amortization payment schedule to reflect the reduced acquisition costs.
6. Lessor and Lessee may by written agreement between themselves remove the Agent, at any time and for any reason, and appoint a successor escrow agent. Such removal shall not be effective until thirty (30) days after written notice thereof if provided to Agent.
7. Agent may at any time and for any reason resign as escrow agent by giving written notice to Lessor and Lessee of its intention to resign and of the proposed date of resignation, which date shall be not less than thirty (30) days after giving Lessee and Lessor written notice of intent to resign, nor less than thirty (30) days after being appointed by Lessor and Lessee. Upon the effective date of any resignation, the Escrow Agent shall deliver all cash and other property in the Fund to a successor escrow agent designated by Lessor, and if no successor has been appointed, shall deliver all such cash and other property to the Lessor and all obligations of the Escrow Agent shall cease.
8. Agent shall have no obligation under the terms of this Agreement to make any disbursement except from the Fund. Agent makes no warranties or representations as to the Property or as to performance of the obligations of Lessor or Lessee under this Agreement or the Lease.
9. Agent shall be entitled to rely in good faith upon any documents signed by a party hereto and shall have no duty to investigate the veracity of such documents. Agent (i) may assume that any person giving notice pursuant to the terms hereof is authorized to do so and (ii) shall not be liable for good faith reliance thereon. Agent may consult with legal counsel in the event of any dispute or question as to the construction of any of the provisions hereof or its duties hereunder, and, to the extent it acts in good faith without gross negligence or willful misconduct, it shall be fully protected in acting in accordance with the opinion or instructions of such counsel. The Agent shall not be liable for any act done or step taken or omitted by it or any mistake of fact or law, except for its gross negligence or willful misconduct. The Lessor and Lessee jointly and severally agree to indemnify and save Agent harmless from all losses, costs, liabilities, actual damages, fees, and expenses (including, but not limited to, reasonable attorney's fees and expenses) suffered or incurred by Agent arising from the performance of its obligations under this Agreement ("Acts"), except such Acts as arise from or attributable to the gross negligence or willful misconduct of Agent.
10. To the limited extent required to perfect the security interest granted by Lessee to Lessor in the cash and negotiable instrument from time to time comprising the Fund, Lessor hereby appoints the Agent as its security agent, and the Agent hereby accepts the appointment as security agent, and agrees to hold physical possession of such cash negotiable instruments on behalf of Lessor.
11. This Agreement may be amended by written agreement executed by all the parties. Lessor may assign its rights and/or obligations at any time with written notice thereof to the other parties hereto.
12. This Agreement may be executed in several counterparts, each of which shall be an original. The parties hereto agree the transactions described herein may be conducted and related documents may be stored by electronic means.
13. Agent shall be entitled to fees and expenses for its regular services as Agent as set forth in its fee letter delivered to the Lessor and Lessee.
Additionally, Agent is entitled to fees for extraordinary services and reimbursement of any out of pocket and extraordinary costs and expenses, including, but not limited to, attorneys' fees. Agent shall have a first lien upon all amounts in the Fund for the purposes of paying its fees and expenses. All of the Escrow Agent's compensation, costs and expenses shall be paid by the Lessee unless agreed to by Lessor.
14. In the event of any disagreement between the undersigned or any other person, resulting in adverse claims and demands being made on
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
the Fund, the Agent shall be entitled to refuse to comply with any demand or claim, as long as such disagreement shall continue, and in so refusing to make any delivery or other disposition of any money, papers or property involved or affected hereby, the Agent shall not be or become liable to the undersigned for its refusal to comply with such conflicting or adverse demands, and the Escrow Agent shall be entitled to refuse and refrain to act until: (a) the rights of the adverse claimants shall have been fully and finally adjudicated in a Court assuming and having jurisdiction of the parties and money, papers and property involved herein or affected hereby, or (b) all differences shall have been adjusted by agreement and the Agent shall have been notified thereof in writing, signed by all the interested parties.
15. The parties hereto agree that, for tax reporting purposes, all interest or other income, if any, attributable to the Escrowed Funds or any other amount held in escrow by the Escrow Agent pursuant to this Agreement shall be allocable to the Lessor for credit to Lessee subject to the terms of this Agreement. The Lessor and Lessee agree to provide the Escrow Agent completed Forms W-9 (or Forms W-8, in the case of nonU.S. persons) and other forms and documents that the Escrow Agent may reasonably request (collectively, "Tax Reporting Documentation") at the time of execution of this Agreement and any information reasonably requested by the Escrow Agent to comply with the USA Patriot Act of 2001, as amended from time to time. The parties hereto understand that if such Tax Reporting Documentation is not so certified to the Escrow Agent, the Escrow Agent may be required by the Internal Revenue Code, as it may be amended from time to time, to withhold a portion of any interest or other income earned on the investment of monies or other property held by the Escrow Agent pursuant to this Escrow Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
LESSOR: Government Capital Corporation
BY: ________________________________________________
Authorized Signer
LESSEE: City of Grover Beach
BY: _________________________________________________
Matthew Bronson, City Manager
AGENT: ____________________________________________________ BY: _________________________________________________
Agent Rep, Agent Rep Title
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT
ESCROW AGREEMENT – SCHEDULE 1
CALIFORNIA MUNICIPAL LEASE-PURCHASE AGREEMENT No. (THE "AGREEMENT")
BY AND BETWEEN
Lessor, Government Capital Corporation and Lessee, City of Grover Beach Dated as of November 30, 2023
ESCROW DISBURSEMENT REQUEST FORM
_____________________________, acting as escrow agent (the "Agent") under the Escrow Agreement dated as of November 30, 2023 (“Escrow Date”) by and among the Agent, Government Capital Corporation as Lessor and City of Grover Beach as Lessee, is hereby requested to pay to the person or corporation designated below as Payee the sum set forth below in payment of the acquisition and installation costs of the equipment described below. The amount shown below is due and payable under the invoice of Payee with respect to the described equipment and has not formed the basis for any prior request for payment.
PAYEE: (Include W-9) __________________________________________________________________________ AMOUNT: ____________________________________________________________________________________ DESCRIPTION OF EQUIPMENT: ___________________________________________________________________ INVOICE #_________________________________________ DATED: ___________________________________ Indicate Method for Payment Disbursement:
______ Overnight Check *** _______ Regular Mail Check ________ Wire Funds Mailing Address: ______________________ Wire Instructions: ________________________ _______________________ ___________________________________ (*** Please note that there might be a fee charged for overnight delivery. This fee will be deducted from the Escrow Balance before disbursement is made).
Lessee: City of Grover Beach
By: ______________________________________
Matthew Bronson, City Manager
Lessor: Government Capital Corporation or its Assigns
By: ______________________________________
Authorized Signer
ACCEPTANCE CERTIFICATE
City of Grover Beach as Lessee under that certain California Municipal Lease-Purchase Agreement dated as of November 30, 2023 ("Agreement Date") (the "Lease"), hereby acknowledges receipt in good condition of all the equipment described on the attached Vendor Invoice(s) hereby accepts such equipment and hereby certifies that Lessor has fully and satisfactorily performed all covenants and conditions to be performed by it under the Lease with regard to such equipment, that such equipment is fully insured in accordance with Section 10 of the Lease and that such equipment constitutes all or a portion of the Equipment as that term as defined in the Lease.
Date of Property/Services Acceptance: _______________________, 20223.
By Lessee:
________________________________________
Matthew Bronson, City Manager
For Lessee: City of Grover Beach
Agenda Item No. 13
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: November 13, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: Five Cities Fire Authority Policy and Operational Update
RECOMMENDATION
Receive an update on Five Cities Fire Authority policy and operational items in FY 2023-24 and provide input and comments to Council representatives and staff.
DISCUSSION
On June 12, 2023, the Council approved the Joint Powers Authority (JPA) agreement for an Amended and Restated Five Cities Fire Authority (FCFA) incorporating the cities of Arroyo Grande and Grover Beach following the withdrawal of the Oceano Community Services District (OCSD) and appointed Council Members Rushing and Weirick to serve as the Council’s representatives to the reconstituted FCFA Board. The Council also provided direction to its representatives to approve pending agreements with OCSD on temporary fire and emergency medical services for one year and ongoing obligations for CalPERS pension liabilities. The Arroyo Grande City Council subsequently approved these items on June 13. On June 22, the reconstituted FCFA Board met and took several actions including approving the OCSD agreements, the FCFA FY 2023-24 budget, and purchase of a replacement Type 1 engine and ladder truck. The Board selected Council Member Rushing to be Chair for FY 2023-24 and Arroyo Grande Council Member George to be Vice Chair. Given the Chair selection, City Manager Bronson was selected to serve as Chief Executive Officer for FCFA for FY 2023-24 consistent with the JPA agreement where the Chair and Chief Executive Officer are from the same city.
This staff report is intended to update the Council on FCFA policy and operational items to date during FY 2023-24. The FCFA Board has met twice during this time on August 21 and October 16 and Board agenda and materials are available on the FCFA website. This report covers the following items:
• Service Levels and Staffing
• Equipment Replacement and Purchase
• Oceano Fire Service
The following pages include a brief description of each item for the Council’s information. Staff will defer to the Council representatives to provide additional information.
Service Levels and Staffing
With the approval of the one-year agreement with OCSD to provide fire and emergency medical services and increases in partner agency funding, FCFA has been able to increase its staffing levels consistent with the Baker Tilly review of fire and emergency medical services needs in Staff Report: FCFA Policy and Operational Update Page 2 November 13, 2023
Grover Beach and Arroyo Grande. The staffing increases for FY 2023-24 included the addition of
1.0 FTE Battalion Chief position and 2.0 FTE Firefighter Engineer positions which enabled a 24x7 third company with 2-person staffing. Through consultation with the employee union Local 4403, FCFA opted to temporarily fill the shifts for the new Firefighter Engineer positions using existing personnel this year rather than hiring new employees given future uncertainty about Oceano fire service. If fire service was provided to Oceano on an ongoing basis beginning in FY 2024-25, then these new positions would be opened for recruitment and filled permanently. In addition to these new positions, both cities have added funding in their respective budgets to carry out additional contract fire prevention services though this is considered a temporary step until an inhouse fire prevention bureau can be established in the future.
With the new Battalion Chief position, FCFA opened a recruitment process in July and attracted a strong pool of applicants both locally and out of the area. An assessment was conducted in early September and both City Managers (serving as the Management Committee) subsequently interviewed finalists. On October 16, FCFA announced the hiring of Ryan Bird as the new Battalion Chief and conducted a badge pinning ceremony on November 9. Chief Bird was previously a Captain with the Fresno City Fire Department and started his career as a reserve firefighter with the Arroyo Grande Fire Department. Staff also acknowledges the recent departure of Battalion Chief Riki Heath who retired from FCFA on October 27 after 30 years of fire service experience. Chief Heath was one of the original members of the FCFA when it was formed in 2010. FCFA will begin a recruitment process this month to fill this vacant position in early 2024.
Additionally, on August 21 Chief Steve Lieberman announced his retirement from FCFA effective December 29. Chief Lieberman has served as fire chief for nine years and was instrumental in shaping FCFA into the modern, professional, and high-quality fire and emergency medical service agency it is today. The FCFA Management Committee engaged a recruitment firm to conduct a recruitment process which opened on October 20 and closes on November 17. Interviews will be conducted in early December with a selection anticipated by mid-December and a start date in January/February 2024. The FCFA Board approved Chief Lieberman to serve as Interim Chief as a retired annuitant through February following his retirement to ensure continuity before the new Chief begins.
Lastly, on October 16 the FCFA Board approved a new successor Memorandum of Understanding and Resolution with the International Association of Fire Fighters Local 4403 for the period of July 1, 2023 to June 30, 2027. A similar Resolution was approved for unrepresented management employees. These Resolutions provided cost of living along with equity adjustments in employee compensation for FCFA positions to be more comparable to other agencies following a compensation study conducted earlier in the year by the City of Arroyo Grande. Funding for these adjustments has been budgeted in the FCFA operating budget.
Equipment Replacement and Purchase
As mentioned, on June 22 the FCFA Board approved the replacement of a Type I Engine and Ladder Truck. The Type I Engine to be replaced (E6691) reached the 15-year replacement cycle in 2022 and was originally purchased by the City of Arroyo Grande and transferred to FCFA in 2010. The existing Ladder Truck (T6645) is nearing the 15-year replacement cycle and has been plagued with recurring and costly mechanical problems and repairs.
Over the past year, FCFA convened an in-house working group to develop specifications for both vehicles with the replacement Type I Engine similar to the other engines (E6692 and E6693) with slight modifications. The replacement Ladder Truck will be based on a “tiller” design that requires operators both in the cab and at the back of the vehicle (the tiller operator). Advantages of this Staff Report: FCFA Policy and Operational Update Page 3 November 13, 2023
design include increased equipment storage, and specifically maneuverability, increased access to structures, and a faster speed of ladder deployment. The tiller design will eventually allow for the consolidation of two vehicles into one (T6645 and Rescue 6652) to avoid ordering a replacement rescue vehicle at over $1 million in the future.
The total cost of this replacement equipment is $3.7 million ($1.3 million for the Type I Engine and $2.4 million for the Ladder Truck) with a build time for both vehicles of approximately three years.
FCFA staff selected Pierce Manufacturing for this purchase and the Board subsequently approved a purchase agreement for the equipment. FCFA has typically negotiated 10-year lease-purchase agreements for fire vehicles and FCFA staff negotiated an option with Pierce Manufacturing to delay entering into this agreement until closer to the date of completion of the vehicles. This option would defer nearly $1 million in lease payments over the next three years with the expectation of lower interest rates in the future. During this time, existing lease payments for Engines 6692 and 6693 would end and result in cost savings returning to FCFA fund balance.
FCFA also took ownership of a new Type III Brush Engine in August where it was deployed into wildfire response outside of the area almost immediately. The previous 20-year-old existing Type III engine will be kept as a reserve. FCFA officially introduced the new Type III Engine to the community on November 9.
Oceano Fire Service
FCFA is currently in a one-year agreement with OCSD to provide fire and emergency medical services in Oceano through June 30, 2024. This limited term contract was provided in the interest of continuing FCFA’s service delivery in Oceano while OCSD’s application with the Local Area Formation Commission (LAFCO) to divest the district from the responsibility of providing fire and emergency services was under review. This application was submitted in January 2023 with a decision by LAFCO expected in early 2024.
Below are the key terms of this limited term contract with OCSD:
• Term: 12 months to provide time for completion of the LAFCO divestiture process. • Cost: $1,150,000.
• Scope of Service: Fire and emergency response services, including the minimal fire prevention services currently provided by the FCFA.
• Location: Service provided from companies stationed at either Station 1 in Arroyo Grande or Station 2 in Grover Beach. Identified deficiencies at Station 3 in Oceano make continued use of this station by FCFA staff unadvisable at this time beyond use as a storage area.
OCSD’s payment of $1.15 million is significantly below the cost of this service, however OCSD was unable to fund fire service in FY 2023-24 beyond this amount. Both the Arroyo Grande and Grover Beach City Councils discussed this during the budget review process and expressed concern about this funding amount though ultimately provided direction to their respective representatives on the FCFA Board to approve the limited term contract for service. However, both Councils indicated that a potential contract with the County for providing ongoing service to Oceano would come at a higher cost more commensurate with the actual cost of this service.
Beginning in June, the FCFA Management Committee has worked with the County to provide information about the cost of ongoing service delivery to Oceano. The cost information provided to the County is based on the Baker Tilly review which estimated a cost of $2.15 million for ongoing service to Oceano using a recommended service level of three 3-person companies. The Staff Report: FCFA Policy and Operational Update Page 4 November 13, 2023
County subsequently requested information on the cost of a 2-person versus 3-person company which was estimated by Baker Tilly at $1.97 million as it also included in-house fire prevention services rather than the contract services currently provided by each city. For each cost estimate, service response would come from companies based at either Station 1 in Arroyo Grande or Station 2 in Grover Beach given the current closure of Station 3 in Oceano.
On September 12, the Board of Supervisors received a presentation from County staff about policy options for the County to provide fire service in Oceano if LAFCO approved OCSD’s request for divestiture. Contracting with FCFA was recommended by County staff and the Board of Supervisors concurred and directed staff to begin negotiations with FCFA for this contract service.
However, under this option FCFA’s service level would be similar to the current service level with a third 2-person company and contract fire prevention services. FCFA would receive $1.7 million for providing this fire service in FY 2024-25 which is considerably less than the $2.15 million proposed to the County for a 3-person company or the $1.97 million subsequently proposed for a 2-person company with in-house fire prevention services. Board members and County staff indicated the County’s desire to have 3-person staffing in all unincorporated areas consistent with the County’s Fire Strategic Plan but lack of available funding and equity concerns with other areas would preclude them from funding this service level for Oceano at this time.
On October 18, the FCFA Board discussed the issue of Oceano fire service and provided direction to staff on parameters for a potential service contract between FCFA and the County. The Board recognized the value of providing this service to help secure additional funding for FCFA though expressed significant concern over the lack of sufficient funding from the County for a 3-person company. Achieving 3-person staffing levels is important for FCFA to ensure the highest quality service response and the Board directed staff to continue working with the County on options to achieve this desired staffing level in a contract service model. The Board also directed staff to work with the County on capital improvements related to Station 3 as operating a third company out of this station again would provide the most effective service response. Staff is carrying out this direction with the County with a goal of bringing a draft term sheet or agreement to the Board in January. Staff will defer to Council Members Rushing and/or Weirick to provide additional information on the Board’s discussion and to seek input from other Council Members.
FISCAL IMPACT
There is no fiscal impact from this agenda item. The cost of the City’s contribution to FCFA for fire and emergency medical services is included in the City’s operating budget and totals $2.77 million for FY 2023-24 and $2.86 million for FY 2024-25.
ALTERNATIVES
The Council has the following alternatives to consider:
1) Receive an update on Five Cities Fire Authority policy and operational items to date in FY 2023-24 and provide input and comments to Council representatives and staff; or 2) Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Agenda Item No. 14
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: November 13, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Wendi Sims, City Clerk
SUBJECT: 2024 City Council Assignments to Boards, Commissions and Committees
RECOMMENDATION
Adopt the Resolution confirming certain Council assignments and authorize the City Clerk to update FPPC Form 806 for posting on the City’s website.
BACKGROUND
The Council annually reviews the list of assignments to determine interest in serving as the City's representative to various external boards, commissions, and committees throughout the county.
The Council’s practice has been to determine assignments (representatives and alternates) through a process of discussion and consensus. A draft Resolution is provided to confirm City Council appointments as shown in Attachment 1. Once appointments have been approved by the Council, the names of Council representatives will be submitted to the respective agencies. In addition to these assignments, the Council can create additional assignments to external groups or form Council subcommittees on specific topics on an ad-hoc basis.
One exception to the Council Committee appointment process is regarding the South SLO County Sanitation District. The Memorandum of Understanding between the City and the South SLO County Sanitation District indicates that “The District Board will be composed of the Presiding Officer of the City of Arroyo Grande, the Presiding Officer of the Oceano Community Services District, and the Presiding Officer of the City of Grover Beach, or their respective alternates.” Pursuant to regulations of the Fair Political Practices Commission (FPPC), members of the City Council may participate in the deliberations to appoint him or herself to a compensated position.
Those compensated positions are reported on a specific form available in the City Clerk’s Office and posted to the City website in accordance with FPPC Regulation §18702.5. The form (FPPC Form 806) is updated when there is a change in compensation or representation.
FISCAL IMPACT
There is no anticipated fiscal impact to the City from the recommended action.
Staff Report: 2024 City Council Assignments Page 2
November 13, 2023
ALTERNATIVES
The City Council has the following alternatives to consider:
1. Adopt the Resolution confirming appointments for 2024; or
2. Take no action and carry this item over for discussion to a future meeting; or
3. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution confirming certain City Council committee assignments Exhibit A - Assignment Template with Current Assignments Exhibit B – Description of External Boards, Committees, and Commissions (with updated meeting information)
2. FPPC Form 806
RESOLUTION NO. 23-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, REVISING CITY COUNCIL COMMITTEE ASSIGNMENTS FOR CALENDAR YEAR 2024
WHEREAS, the City Council is involved in various committees, boards, and organizations that serve the City and provide representation of the City’s interests; and WHEREAS, the City Council considers committee assignments on an annual basis to ensure adequate representation of the City’s elected officials throughout the County; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grover Beach that this Resolution does hereby supersede all prior Resolutions dealing with these Council appointments to various standing committees, boards, and organizations; and that the City representatives from this date forward are designated in the attached Exhibit A in accordance with the description of the assignments as described in Exhibit B.
On motion by Council Member __________, seconded by Council Member ________, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 13th day of November 2023.
KAREN BRIGHT, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 1
**DRAFT**
Exhibit A
Resolution No. 23-__
COUNCIL APPOINTMENTS FOR 2024
ASSIGNMENT 2023 REPRESENTATIVE ALTERNATE
Advisory Body Screening Committee 1 See below N/A
Air Pollution Control District (APCD) Karen Bright Robert Robert Central Coast Blue Regional Recycled Water Authority (CCBRRWA) Karen Bright Daniel Rushing Five Cities Fire Joint Powers Authority Daniel Rushing Clint Weirick Homeless Services Oversight Council (HSOC) Clint Weirick Zach Zimmerman Integrated Waste Management Authority (IWMA) Robert Robert Daniel Rushing REACH Zach Zimmerman Robert Robert
SLO County Water Resources Advisory Committee (WRAC) Clint Weirick Robert Robert SLO Council of Governments / SLO Regional Transit Authority (SLOCOG / SLORTA) Daniel Rushing Karen Bright
South County Transit Committee Daniel Rushing Karen Bright South County Chambers of Commerce Zach Zimmerman Daniel Rushing South SLO County Sanitation District (SSLOCSD) Karen Bright Clint Weirick Visit SLO CAL Advisory Committee Zach Zimmerman Robert Robert Zone Three Advisory Committee Daniel Rushing Karen Bright Note: The City updates and posts FPPC Form 806 to the City website to report additional compensation that officials receive when appointing themselves to positions on committees, boards or commissions of a public agency, special district, and joint powers agency or authority.(Pursuant to Regulation 18705.5, amended March 2012)
1Per City Council action on October 16, 2000, Council representation will be the Mayor and one Council Member selected by random drawing.
CITY OF GROVER BEACH
DESCRIPTION OF EXTERNAL BOARDS, COMMISSIONS, AND COMMITTEES Annually, the City Council makes appointments of City Council members to various external boards, commissions, and committees to ensure adequate representation of elected officials throughout the county. Below is further information about each external body along with assignment requirements and past representatives:
1. Advisory Body Screening Committee
Requirement: Mayor and 1 Council Member (who is selected by random drawing pursuant to Council direction on October 16, 2000.)
This committee serves as an interview board for interviewing prospective candidates for one of the City’s three (3) Advisory Bodies. The committee is comprised of the Mayor, one Council Member, and the Chairperson of the respective Advisory Body.
Meetings: Scheduled only when there are vacancies on an Advisory Body and applicants to be considered for appointment(s).
Estimated time commitment for City representative: Minimal. Primarily agenda review, attending meetings as scheduled to interview applicants, and making recommendation(s) to the City Council.
Stipend: None.
2. Air Pollution Control District (APCD)
Requirement: 1 Council Member and 1 Alternate
This is the County-wide legislative authority which deals with clean air maintenance and attainments. The District Board consists of twelve members: five (5) County Supervisors and one (1) City Council representative from each of the seven (7) incorporated cities. City representation was authorized in 1994. As of January 1, 2010, alternates may also be appointed (Health and Safety Code section 40100.5).
Meetings: The fourth Wednesday of every odd-numbered month at 9 a.m. (with some exceptions) in the County Board of Supervisors Chambers, 1055 Monterey Avenue, San Luis Obispo.
Estimated time commitment for City representative: Agenda review of technical materials / information and attending regular meetings (approx. 3 hours) and special meetings / workshops as needed. May require attendance at out of area meetings, if appointed as the APCD Representative or Alternate to the South-Central Coast Air Basin Control Council.
Stipend: $100 per regular meeting attendance (as of July 2009; no additional stipend for attending special meetings or workshops).
2023 Representatives: Karen Bright, Robert Robert (Alternate) Exhibit B
Description of External Boards, Commissions & Committees Page 2
3. Central Coast Blue Regional Recycled Water Authority (CCBRRWA) (Cities of Grover Beach, Arroyo Grande, and Pismo Beach) Requirement: 1 Council Member and 1 Alternate
The Central Coast Blue Regional Recycled Water Authority has responsibility for the operation and maintenance of the Central Coast Blue Project and owns the facility sites, facilities, ancillary facility sites and ancillary facilities. The Authority is governed through a joint powers agreement with the Cities of Grover Beach, Arroyo Grande, and Pismo Beach. The Authority Board consists of an elected official from each agency.
Meetings: Held quarterly on a schedule to be finalized in early 2023 at Grover Beach City Hall, Council Chamber, with special meetings scheduled as needed.
Estimated time commitment for City representative: Primarily agenda review and attending regular meetings (approximately 1.5 hours per quarter) and special meetings, as needed.
Stipend: None
2023 Representatives: Karen Bright, Daniel Rushing (Alternate)
4. Five Cities Fire Joint Powers Authority
(Cities of Grover Beach and Arroyo Grande)
Requirement: 2 Council Members
The Five Cities Fire Authority provides fire protection services through a joint powers agreement with the Cities of Grover Beach and Arroyo Grande. The Authority Board consists of two Council Members from each member agency with the two City Managers serving as the Executive Management of the Authority.
Meetings: The third Monday in January, April, July, and October at 5:00 p.m. at either the Grover Beach or Arroyo Grande Council Chamber, with special meetings scheduled as needed.
Estimated time commitment for City representative: Primarily agenda review and attending regular meetings (approximately 1.5 hours per month) and special meetings, as needed.
Stipend: None
2023 Representatives: Daniel Rushing, Clint Weirick
5. Homeless Services Oversight Council (HSOC)
Requirement: 1 City Council Member and 1 Alternate
In 2008, a countywide coalition of cities, agencies, and civic groups formed to improve the County’s approach to homelessness which led to a report entitled A Path to A Home, San Luis Obispo Countywide 10-Year Plan to End Homelessness. The HSOC is an advisory committee formed from this process to discuss the countywide approach to homelessness and services for the homeless, including both housing and supportive services particularly given the County’s updated five-year plan to address homelessness adopted in 2022. Membership is comprised of a broad spectrum of representatives, including the County Board of Supervisors, each City, certain County government departments (health, planning, social services, veteran services, and Description of External Boards, Commissions & Committees Page 3 probation), law enforcement, business organizations, academic institution, faith community, as well as interested community members.
Meetings: Scheduled bi-monthly (six times per year), at a time and date determined by its members and may be changed by a majority vote of the HSOC at any regular meeting. Location varies in San Luis Obispo (County Government Center, San Luis Obispo Veterans’ Memorial Building or the Department of Social Services). The Full HSOC Meetings are held from 1:00 - 3:00 p.m. on the 3rd Wednesdays of every other month, with additional meetings for subcommittees.
Estimated time commitment for City representative: Primarily agenda review and attending meetings (approx. 2 hours), as well as special meetings/workshops or events as needed.
Stipend: None.
2023 Representatives: Clint Weirick, Zach Zimmerman (Alternate)
6. Integrated Waste Management Authority (IWMA)
Requirement: 1 City Council Member and 1 Alternate
Responsibility includes preparing an integrated waste management plan implementing state mandated legislation (AB 939). The plan will include elements for recycling, composting, education, and various other waste management areas. The role of the authority member is to guide the reduction of the County’s waste stream.
Meetings: Held at 1:30 p.m. on the second Wednesday of each month at the San Luis Obispo County Board of Supervisors Chambers, 1055 Monterey Street, San Luis Obispo.
Estimated time commitment for City representative: Primarily agenda review and attending regular meetings (approximately 2 hours).
Stipend: $100 per meeting.
2023 Representatives: Robert Robert, Daniel Rushing (Alternate)
7. REACH
Requirement: 1 Council Member and 1 Alternate
REACH (Regional Economic Action Coalition) brings together a cross-section of business, government, education and nonprofit leaders to transform the quality of life on the Central Coast and increase economic prosperity through big thinking, bold action, and regional collaboration.
There are multiple stakeholder meetings throughout the year where the Council representative will hear from a variety of dynamic speakers, engage with a network of peers, make recommendations to the REACH Council on job creation initiatives and participate in the advocacy of the REACH mission.
Meetings: Approximately 2-4 meetings will be held over the year and will be scheduled separately.
Description of External Boards, Commissions & Committees Page 4 Estimated time commitment for City representative: Primarily agenda review and attending regular meetings (approximately 1.5 hours).
Stipend: None.
2023 Representatives: Zach Zimmerman, Robert Robert (Alternate)
8. San Luis Obispo County Water Resources Advisory Committee (WRAC) Requirement: 1 Council Member (*recommended) and 1 Alternate This organization is involved with water supplies and availability of water on a county-wide basis.
The purpose is to advise the County Board of Supervisors concerning all policy decisions relating to water resources of the SLO County Flood Control & Water Conservation District, to recommend specific water resource programs, and to recommend methods of financing water resource programs. (*Appointed representatives are not required to be elected officials, but should be individuals knowledgeable regarding water issues. According to WRAC staff, cities may appoint a Council Member as the lead representative who would be available when policy issues are discussed, with a staff member as the alternate for attending most of the meetings.) Note: Councilappointed representatives require approval by the Board of Supervisors.
Meetings: First Wednesday of each month (except July and August), 1:30 p.m. - 3:30 p.m., San Luis Obispo City/County Library Community Room, 995 Palm Street, San Luis Obispo.
Estimated time commitment for City representative: Primarily agenda review of technical materials/information and attending regular meetings (approx. 2.5 - 3 hrs), and special meetings/workshops as needed. Additional time required if volunteering to serve on ad hoc subcommittee assignments approximately six times/year (eg., reviewing biennial water report for County). Ad hoc committee meetings are scheduled as needed.
Stipend: None.
2023 Representatives: Clint Weirick, Robert Robert (Alternate)
9. San Luis Obispo Council of Governments / San Luis Obispo Regional Transit Authority (SLOCOG / SLO RTA)
Requirement: 1 Council Member and 1 Alternate
SLOCOG is a regional governing body organized through a joint powers agreement that has responsibility for transportation planning, housing and infrastructure planning, and other regional coordination needs.
Meetings: First Wednesday of every month (more frequently, if needed) and start at 8:30 a.m. at the County Board of Supervisors Chambers in San Luis Obispo.
Estimated time commitment for City representative: Primarily agenda review of technical materials/information and attending regular meetings (approximately 4-5 hrs for SLOCOG), and special meetings/workshops as needed.
Stipend: $100 per meeting.
Description of External Boards, Commissions & Committees Page 5 SLO RTA is operated through a joint powers agreement with SLOCOG to oversee the countywide transit system. The representative is usually the same representative as the SLOCOG representative as SLORTA meetings start either before or after SLOCOG and has the same Board.
Meetings: First Wednesday of every month either before or after the SLOCOG meeting.
Location: County Board of Supervisors Chambers in San Luis Obispo.
Estimated time commitment for City representative: Primarily agenda review of technical materials/information and attending regular meetings (approximately 1.5 - 2 hours for SLORTA), and special meetings/workshops as needed.
Stipend: None.
2023 Representatives: Daniel Rushing, Karen Bright (Alternate)
10. South County Transit Committee (SCTC)
Requirement: 1 Council Member and 1 Alternate
This committee is an advisory body to the San Luis Obispo Regional Transit Authority Board and is tasked with providing a recommendation to the Board on the budget and services provided to the South County area in the subsequent fiscal year. The Cities of Grover Beach, Arroyo Grande, and Pismo Beach are represented on the Committee along with the County. The SCTC representative would be the representative of the SLOCOG/RTA.
Meeting: Held annually prior to May 1st at the Board of Supervisors’ Chambers.
Estimated time commitment for City representative: Primarily agenda review and attending regular meetings (approx. 1 – 1.5 hours) and special meetings as needed.
Stipend: None.
2023 Representatives: Daniel Rushing, Karen Bright (Alternate)
11. South County Chambers of Commerce
Requirement: None.
The Council annually designates a City Council representative to attend Chamber events and meetings of the Chamber’s Grover Beach Steering Committee and Government Affairs Committee. The City Manager, or designee, is the staff liaison and program manager for operational agreements and work efforts between the City and the Chamber.
Meetings: The Chamber holds monthly events for the entire membership - lunches, educational workshops, mixers, special events, ribbon cuttings, etc.
Estimated time commitment for City representative: Attending Chamber events, as scheduled and Government Affairs meeting (approx. 1-3 hours).
Stipend: None.
Description of External Boards, Commissions & Committees Page 6 2023 Representatives: Zach Zimmerman, Daniel Rushing (Alternate)
12. South San Luis Obispo County Sanitation District (SSLOCSD) Requirement: Mayor or Mayor’s Designee and 1 Alternate
The City contracts with the Sanitation District for wastewater collection and treatment. The District is governed by a Board of Directors composed of the presiding officer from the Cities of Grover Beach and Arroyo Grande and the Oceano Community Services District, or their respective alternates (per Memorandum of Understanding between the City and the Sanitation District, as well as Health and Safety Code sections 4730-4735)
Meetings: The first and third Wednesdays of each month at 6:00 p.m. Location rotates between member agencies - Arroyo Grande and Grover Beach Council Chambers, and the Board Chamber for the Oceano Community Services District.
Estimated time for City representative: Primarily agenda review and attendance at regular meetings (average 2-4 hours) with special meetings/workshops, as needed.
Stipend: $100 per meeting (2 meetings held/month)
2023 Representatives: Karen Bright, Clint Weirick (Alternate)
13. Visit SLO CAL - Advisory Committee
Requirement: 1 City Council Member and 1 Alternate (non-voting capacity) Visit SLO County promotes countywide tourism opportunities and complements the efforts of local communities and organizations. It is a private, non-profit organization with membership comprised of local businesses, chambers of commerce, County government, and most incorporated cities in the County.
With the formation of the Tourism Marketing District in 2015 and district renewal in 2020, voting members of the Board of Directors must be a representative of an assessed lodging business, except for the County representative. During formation of the Tourism Marketing District, an Advisory Committee was established. The Advisory Committee is made up of one elected official and the city manager from each jurisdiction, and a representative of the County.
Meetings: Twice annually (May and December).
Estimated time commitment for City representative: Consists primarily of agenda review and attending meetings and workshops, as needed. (approximately 1.5 - 2 hours).
Stipend: None
2023 Representatives: Zach Zimmerman, Robert Robert (Alternate) Description of External Boards, Commissions & Committees Page 7
14. Zone Three Advisory Committee
Requirement: 1 Council Member and 1 Alternate
This is a County-organized committee to handle the operation of Lopez Lake for both recreation and water facilities. The Advisory Committee works closely with the Zone 3 Technical Advisory Committee. Council-appointed representatives require final approval by the Board of Supervisors.
Meetings: Scheduled on the third Thursday of every odd numbered month (Jan, Mar, May, etc.) at 6:30 p.m., and held in the Council or Board Chamber of the local member agencies on a rotating basis - Grover Beach, Arroyo Grande, Oceano, and Pismo Beach.
Estimated time commitment for City representative: Primarily agenda review of technical materials/information and attending regular meetings (approx. 2 hours) and special meetings/workshops as needed. May occasionally require additional time to meet with City staff, depending upon the complexity of the agenda item(s).
Stipend: None.
2023 Representatives: Daniel Rushing, Karen Bright (Alternate)
Agency Report of:
Public Official Appointments A Public Document
1. Agency Name California
Form 806
Division, Department, or Region (If Applicable)
Designated Agency Contact (Name,Title)
For Official Use Only
Area Code/Phone Number E-mail
Page _____ of _____
Date Posted:
(Month, Day, Year)
2. Appointments
Appt Date and
Length of Term
Agency Boards and
Commissions Name of Appointed Person Per Meeting/Annual Salary/Stipend (Last, First)
(Last, First)
(Last, First)
(Last, First)
Alternate, if any
Alternate, if any
Alternate, if any
Alternate, if any
(Last, First)
(Last, First)
(Last, First)
(Last, First)
Name
Name
Name
Name
$0-$1,000
$0-$1,000
$0-$1,000
$0-$1,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
Other
Other
Other
Other
____/____/____
Appt Date
____/____/____
Appt Date
____/____/____
Appt Date
____/____/____
Appt Date
Length of Term
Length of Term
Length of Term
Length of Term
Estimated Annual:
Estimated Annual:
Estimated Annual:
Estimated Annual:
Per Meeting: $
Per Meeting: $
Per Meeting: $
Per Meeting: $
3. Verification
I have read and understand FPPC Regulation 18702.5. I have verified that the appointment and information identified above is true to the best of my information and belief.
Signature of Agency Head or Designee Print Name Title (Month, Day, Year) Comment:
FPPC Form 806 (1/18)
FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772)
Attachment 2
Agency Report of:
Public Official Appointments
California
Form 806
A Public Document
Background
This form is used to report additional compensation that officials receive when appointing themselves to positions on committees, boards, or commissions of another public agency or to a committee or position of the agency of which the public official is a member.
This form is required pursuant to FPPC Regulation 18702.5.
Each agency must post on its website a single Form 806 which lists all the paid appointed positions to which an official will vote to appoint themselves. When there is a change in compensation or a new appointment, the Form 806 is updated to reflect the change. The form must be updated promptly as changes occur.
Instructions
This form must be posted prior to a vote (or consent item) to appoint a governing board member if the appointee will participate in the decision and the appointment results in additional compensation to the appointee.
FPPC Regulation 18702.5 provides that as long as the public is informed prior to a vote, an official may vote to hold another position even when the vote results in additional compensation.
Part 1. Agency Identification
Identify the agency name and information on who should be contacted for information.
Part 2. Appointments
Identify the name of the other agency, board or commission. List the name of the official, and an alternate, if any.
List the appointment date and the length of term the agency official will serve. Disclose the stipend provided per meeting and the estimated annual payment. The annual salary is an estimate as it will likely vary depending upon the number of meetings. It is not necessary to revise the estimate at the end of the calendar year.
Part 3. Verification
The agency head or his/her designee must sign the verification.
Frequently Asked Questions (FAQs)
1. When does an agency need to complete the Form 806?
A Form 806 is required when an agency’s board members
vote to appoint a board member to serve on another
governmental agency or position of the agency of which the official is a member and will receive additional compensation.
2. The city council votes to serve as the city’s housing authority, a separate entity. Will the Form 806 be required?
If the council members receive additional compensation for serving on the housing authority, the Form 806 is required.
3. Are appointments made by a governing board to appoint one of its members to serve as an officer of that board for additional pay (e.g., mayor) required to be disclosed on Form 806?
No. FPPC Regulation 18702.5(b)(6) exempts from this
requirement decisions to fill a position on the body of which the official is a member (such as a councilmember being appointed as mayor) despite an increase in compensation.
4. In determining the income, must the agency include mileage reimbursements, travel payments, health benefits, and other compensation?
No. FPPC Regulation 18702.5 requires only the amount of the stipend or salary to be reported.
5. Which agency must post the Form 806?
The agency that is voting to appoint a public official must post the Form 806 on its website. The agency that the official will serve as a member is not required to post the Form 806. The form is not sent to the FPPC.
6. When must the Form 806 be updated?
The Form 806 should be amended promptly upon any of
the following circumstances: (1) the number of scheduled meetings is changed, (2) there is a change in the
compensation paid to the members, (3) there is a change in membership on the board or commission, or (4) there is a new appointment to a new agency.
7. If officials choose to recuse themselves from the decision and leave the room when a vote is taken to make an
appointment, must the Form 806 be completed?
No. The Form 806 is only required to identify those officials that will vote on an appointment in which the official will also receive additional compensation.
Privacy Information Notice
Information requested by the FPPC is used to administer and enforce the Political Reform Act. Failure to provide information may be a violation subject to penalties. All reports are public records available for inspection and reproduction. Direct questions to FPPC’s General Counsel, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, CA 95811.
FPPC Form 806 (1/18)
FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772)
Agency Report of:
Public Official Appointments
California
Form 806
Continuation Sheet A Public Document
Page _____ of _____
1. Agency Name
Date Posted:
(Month, Day, Year)
2. Appointments
Agency Boards and
Commissions Name of Appointed Person
Name
(Last, First)
Alternate, if any
(Last, First)
Name
(Last, First)
Alternate, if any
(Last, First)
Name
(Last, First)
Alternate, if any
(Last, First)
Name
(Last, First)
Alternate, if any
(Last, First)
Name
(Last, First)
Alternate, if any
(Last, First)
Name
(Last, First)
Alternate, if any
(Last, First)
Appt Date and
Length of Term
____/____/____
Appt Date
Length of Term
____/____/____
Appt Date
Length of Term
____/____/____
Appt Date
Length of Term
____/____/____
Appt Date
Length of Term
____/____/____
Appt Date
Length of Term
____/____/____
Appt Date
Length of Term
Per Meeting/Annual Salary/Stipend
Per Meeting: $
Estimated Annual:
$0-$1,000 $2,001-$3,000
$1,001-$2,000 Other
Per Meeting: $
Estimated Annual:
$0-$1,000 $2,001-$3,000
$1,001-$2,000 Other
Per Meeting: $
Estimated Annual:
$0-$1,000 $2,001-$3,000
$1,001-$2,000 Other
Per Meeting: $
Estimated Annual:
$0-$1,000 $2,001-$3,000
$1,001-$2,000 Other
Per Meeting: $
Estimated Annual:
$0-$1,000 $2,001-$3,000
$1,001-$2,000 Other
Per Meeting: $
Estimated Annual:
$0-$1,000 $2,001-$3,000
$1,001-$2,000 Other
FPPC Form 806 (1/18)
FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772)