AGENDA
REGULAR MEETING OF THE
CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF
THE RDA FOR THE CITY OF KING
TUESDAY FEBRUARY 28, 2023
6:00 P.M.
CITY HALL
212 S. VANDERHURST AVENUE
KING CITY, CALIFORNIA 93930
The City Council meeting will be conducted in hybrid in-person/virtual format.
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1. CALL TO ORDER
2. ROLL CALL: Council Members Robert Cullen, Carlos DeLeon, Mayor Pro Tem Carlos Victoria, and Mayor Mike LeBarre
3. FLAG SALUTE
4. CLOSED SESSION ANNOUNCEMENTS
5. SPECIAL PRESENTATIONS
A. American Red Cross 2023 Proclamation
B. California Department of Insurance’s’- Richie Sayavong
6. PUBLIC COMMENT
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 that is not on the agenda. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. Comments should be directed to the Council as a whole and not to any individual Council Member. Slanderous, profane or personal remarks against any Council Member, staff member or member of the audience is not permitted.
7. COUNCIL COMMUNICATIONS & COMMITTEE REPORTS
Individual Council Members may comment on Council business, his or her Council activities, City operations, projects or other items of community interest. Council Members may also request staff to report back at a subsequent meeting on any matter or take action to direct staff to prepare a staff report for a future agenda.
8. STAFF COMMUNICATIONS
Comments presented by the City Manager, City Attorney or other staff on City business and/or announcements.
9. CONSENT AGENDA
The following items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion.
The Council may approve the remainder of the Consent Agenda on one motion. Items withdrawn from the Consent Agenda may be considered by separate motions at the conclusion of the discussion of each item.
A. Consideration: Meeting Minutes of February 14, 2023, Council Meeting Recommendation: approve and file.
B. Consideration: City of King Check Register February 1, through February 15, 2023
Recommendation: receive and file.
C. Consideration: Resolution Opposing Initiative 21-0042A1 Recommendation: adopt a Resolution opposing Initiative 21-0042A1 and authorize the Mayor to sign a letter to the League of California cities joining a coalition in opposition to this initiative
D. Consideration: Cancellation of July 25, 2023 Meeting Recommendation: cancel the regular meeting of July 25, 2023.
E. Consideration: Consideration of Award of Bid for the Dive Pool Resurfacing Project, Including Adopting Finding of a Categorical Exemption Pursuant to Section 15301 of the CEQA Guidelines
Recommendation: 1) award the base bid for the Dive Pool Resurfacing Project as proposed by low bidder, R Roddick Pool Construction, in the amount of $165,115; 2) authorize the City Manager to approve change orders up to 10%; 3) appropriate an additional $60,000 from the General Fund unappropriated fund balance to the Aquatics budget for the project; and 4) adopt a finding of a Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines.
F. Consideration: Approval of Change Order No 1.1, Adding Purple Pipe to Pearl Street, to the 2022 King City Sewer Improvements Project, Including Adopting Finding of a Categorical Exemption, Pursuant to Section 15301 of the CEQA Guidelines
Recommendation: 1) approve change order No 1 to the 2022 King City Sewer Improvements Project adding purple pipe to Pearl Street, in the amount of $601,000.00; 2) appropriate an additional $600,000 to the project budget from the Sewer Fund; and 3) adopt a finding of a Categorical Exemption, pursuant to Class 1, Section 15301 (b) of the CEQA Guidelines.
G. Consideration: Participation in Additional National Opioid Settlements Recommendation: approve and authorize the City Manager to execute any forms necessary to participate in the opioid settlements with Teva and Allergan and chain pharmacies of CVS, Walgreens and Walmart.
H. Consideration: Disposition of Three RV Trailers to the King City Fundamental Baptist Church
Recommendation: 1) adopt a Resolution declaring three RV trailers as surplus property; and 2) approve and authorize the City Manager to execute a disposition agreement with the King City Fundamental Baptist Church to be used for temporarily housing homeless families.
10. PUBLIC HEARINGS
A. Consideration: An Ordinance of the City Council of the City of King Amending Chapter 17.03 of Title 17 of the King City Municipal Code Pertaining to Commercial Cannabis Dispensaries
Recommendation: introduce an Ordinance amending Municipal Code Chapter
17.03 of Title 17 of the King City Municipal Code pertaining to commercial cannabis dispensaries to be read by title only, open the hearing, allow for public testimony, close the hearing, waive first reading of the Ordinance, and approve introduction of the Ordinance.
11. REGULAR BUSINESS
A. Consideration: Community Choice Aggregation Full-Service Agreement with Pilot Power Group, Inc.
Recommendation: 1) approve and authorize the City Manager to execute a new Community Choice Aggregation Full-Service Agreement with Pilot Power Group, Inc. (“Pilot”) to continue operation of King City Community Power (KCCP); and 2) authorize the City Manager to make minor non-substantive changes to the agreement, if necessary, in a form approved by the City Attorney.
B. Consideration: Award of Bid for the King City Downtown Plaza Construction Project
Recommendation: 1) award the base bid for the King City Downtown Plaza Construction Project as proposed by low bidder, F Loduca Co. in the amount of $1,790,154.55; and 2) authorize the City Manager to approve change orders not to exceed ten percent.
12. CITY COUNCIL CLOSED SESSION
Announcement(s) of any reportable action(s) taken in Closed Session will be made in open session and repeated at the beginning of the next Regular City Council meeting as this portion of the meeting is not recorded.
None
13. ADJOURNMENT
The City of King is an equal opportunity provider and employer. 5(A)
City Council Meeting
February 14, 2023
1.__CALL TO ORDER:
Regular Meeting called to order at 6:00pm by Mayor LeBarre.
2.__ROLL CALL:
City Council: Mayor Mike LeBarre, Council member, Carlos DeLeon, Rob Cullen Mayor Pro Tem Carlos Victoria
Council member Darlene Acosta is absent.
City Staff: City Manager Steve Adams; City Attorney Roy Santos; City Clerk, Erica Sonne.
3.__FLAG SALUTE:
The flag salute was led by Mayor LeBarre.
4. CLOSED SESSION ANNOUNCEMENTS:
None
5.__PRESENTATIONS:
Mayor LeBarre read the proclamation honoring Councilmember Darlene Acosta and City Council signed it. The proclamation will be delivered to Ms. Acosta in the near future. City Council appreciates the advocacy that Councilmember Acosta always has for the youth and her huge heart. They appreciate her straight forward approach to items that she may not agree with. They will feel her absence on the council.
6. PUBLIC COMMUNICATIONS:
None
7. COUNCIL COMMUNICATIONS:
Council Member Cullen stated that the Salinas Valley Solid Waste Authority meeting is next Thursday. He attended the Salinas Valley Fair board meeting on January 26th where the damage from the storms was discussed, the field behind the barns and the Long Branch roof along with other minor items to other buildings. Expo renovation is moving along, floors done, paint inside and out, new sign. New heater needed for the Pavilion. King City Stampede coming up in a couple of weeks. Councilmember Cullen brought to councils’ attention that there is a movement in LA County to stop rodeos. He has a QR code that you can be scanned where comment can be provided to LA city council. There is also a resolution that the Council could pass to show support in keeping rodeos in California in a humane way.
Mayor Pro Tem Victoria had nothing to report out tonight stating that AMBAG is going back to in person meetings next month.
Council Member DeLeon had nothing to report out tonight.
Mayor LeBarre stated that TAMC is back to in person meetings where he was voted in as chair. He attended Farm Day here at the fairgrounds on the 26th.
8. CITY STAFF REPORTS AND COMMENTS:
City Manager Steve Adams stated he had nothing to report out tonight. 9(A)
City Attorney Roy Santos stated he had nothing to report out tonight.
On a motion by Mayor Pro Tem Victoria with a second by Councilmember DeLeon the regular business items will be heard in the opposite order with item B being heard first. Motion carried 4-0.
9. CONSENT
A. Consideration: Meeting Minutes of January 24, 2023, Council Meeting B. Consideration: City of King Check Register January 16, through January 31, 2023 C. Consideration: Successor Agency Check Register January 16, through January 31, 2022 D. Consideration: A Resolution of the City Council of the City of King Making Findings Related to the Continued Existence of a State of Emergency Due to COVID-19 and Re-Authorizing the Conduct of Public Meetings of the Legislative Bodies of the City Via Remote Teleconferencing for an Additional 30-Day Period Pursuant to the Ralph M. Brown Act as Amended by Assembly Bill No. 361 E. Consideration: First Amendment to Lease Agreement for Temporary Use of City Property for Food Truck
F. Consideration: Server Room Expansion and Relocation Project G. Consideration: New Lease Agreement for City-Owned House at 424 Pearl Street Action: Motion to approve consent agenda items A—G by and Victoria seconded by Cullen.
AYES: Council Members: LeBarre, DeLeon, Cullen, Victoria, NOES: Council Members:
ABSENT: Council Members: Acosta,
ABSTAIN: Council Members:
10. PUBLIC HEARING:
None
11. REGULAR BUSINESS
B. Consideration: Alternatives for Filling Councilmember Vacancy in District 1 City Manager Steve Adams introduced this item.
Action: Motion to 1) fill the vacancy in Council District 1 by appointment; 2) approve a Resolution adopting a process for filing the vacancy by April 15th Cullen seconded by Victoria.
AYES: Council Members: LeBarre, DeLeon, Cullen, Victoria, NOES: Council Members:
ABSENT: Council Members: Acosta,
ABSTAIN: Council Members:
Council member Cullen recused himself due to a conflict and left the meeting.
A. Consideration: Award of Modified Time and Materials Contract for the King City Visitor and History Center Remodel Project, Including Adopting Finding of a Categorical Exemption Pursuant to Section 16301 of the CEQA Guidelines
City Engineer Octavio Hurtado introduced this item.
Action: Motion to reject both bids directing staff to go out to bid for demo and rough carpentry by and Victoria seconded by DeLeon.
AYES: Council Members: LeBarre, DeLeon, Victoria,
NOES: Council Members:
ABSENT: Council Members: Acosta, Cullen,
ABSTAIN: Council Members:
12. CITY COUNCIL CLOSED SESSION
A. Conference with Legal Counsel – Liability Claims (Pursuant to Government Code Section 54956.95) Consideration of Claim Nos. 2023-002, 2023-003, 2023-004, 2023-005, and 2023-006, tort claims alleging dangerous conditions on public property arising from a train versus vehicle collision at/near Cattleman Road on 10/15/2022.
ADJOURNMENT:
Mayor LeBarre adjourned the meeting at 7:10p.m. to closed session. Back in session with no reportable action Mayor LeBarre adjourned the meeting at 7:13p.m. on a motion by Victoria and a second by DeLeon. Motion carried 3-0.
Approved Signatures:
Mayor, Michael LeBarre City Clerk, Erica Sonne
City of King City of King
Item No. 9(B)
REPORT TO THE CITY COUNCIL
DATE: FEBRUARY 28, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF CITY OF KING CHECK REGISTER
FEBRUARY 1 THROUGH FEBRUARY 15, 2023
RECOMMENDATION:
It is recommended City Council receive and file.
BACKGROUND:
At least once a month, the City Treasurer shall submit to the City Council, a copy of the invoices paid for the previous month.
DISCUSSION:
The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.
COST ANALYSIS:
There is no fiscal impact as a result of this action.
ENVIRONMENTAL REVIEW:
No Environmental Review required for this item.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Receive and file the report; or
2. Provide other direction to staff regarding requests for additional information.
Item No. 9 (C)
REPORT TO THE CITY COUNCIL
DATE: FEBRUARY 28, 2023
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF A RESOLUTION OPPOSING INITIATIVE
21-0042A1
RECOMMENDATION:
It is recommended the City Council adopt a Resolution opposing Initiative 21- 0042A1 and authorize the Mayor to sign a letter to the League of California cities joining a coalition in opposition to this initiative.
BACKGROUND:
An organized effort has been underway for some time to qualify the “Taxpayer Protection and Government Accountability Act Initiative 21-0042A1 for the ballot.
The City Council adopted a Resolution in opposition to the measure at the February 22, 2022 meeting. Proponents failed to gather enough signatures by the deadline to qualify the measure for the 2022 election. They have now qualified it to be on the ballot in November 2024. As a result, the League of California Cities has recommended cities adopt a new Resolution in opposition to this damaging measure.
The measure is proposed by an association representing some of the state’s wealthiest corporations. The measure would limit the voters’ input, adopt new and stricter rules for raising taxes and fees, and make it more difficult to hold state and local law violators accountable. According to information received from League of California Cities, it would give wealthy corporations a major loophole to avoid paying their fair share of local taxes, would enable them to dodge enforcement when they violate environmental, health, public safety and other laws, would jeopardize local services, would create opportunities for frivolous lawsuits, and would undermine voter rights, transparency and accountability.
The League of California Cities Board of Directors voted unanimously to oppose the initiative. Following the Board’s unanimous decision, a coalition of public
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OPPOSING INITIATIVE 21-0042A1 FEBRUARY 28, 2023
PAGE 2 OF 3
safety, labor, local government and infrastructure advocates have joined together to fight against this measure. Cal Cities is asking cities to adopt a city resolution to demonstrate how harmful this measure would be to the community and the people of California. The proposed Resolution is attached for Council consideration.
DISCUSSION:
The proposed initiative would limit voter input by prohibiting local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures. In addition, it would invalidate the Upland decision that allows the majority of local voters to pass special taxes.
The proposed measure sets new standards for fees and charges paid for the use of local and state government property. The standard may significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies and other corporations pay for the use of local public property.
It also restricts the authority of state and local governments to issue fines and penalties for violations. It would require voter approval of fines, penalties and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.
Lastly it would restrict local tax authority to provide local services. New taxes could only be imposed for a specific time period, taxes adopted after January 1, 2022 that do not comply with the new rules would be void unless reenacted, and it would prohibit any surcharge on property tax rates.
One of the most significant concerns with the measure is the many unanswered questions it raises on specifically what would be required. Public votes may be required for fees to reimburse expenditures and for franchise fees, but that is unclear. Therefore, it is likely to result in lawsuits and costly efforts to determine the necessary steps needed to comply. In addition, given the timing of the measure, the City will need to draft its 2024 sales tax measure to comply with the proposed State initiative even though it is unknown whether it will pass since its requirements will be retroactive.
COST ANALYSIS:
There is no cost associated with the recommended action, but passage of the proposed initiative could have serious cost implications to the City.
Item No. 9 (D)
REPORT TO THE CITY COUNCIL
DATE: FEBRUARY 28, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CANCELLATION OF JULY 25, 2023 MEETING
RECOMMENDATION:
It is recommended the City Council cancel the regular meeting of July 25, 2023.
BACKGROUND:
The Municipal Code specifies that the City Council shall conduct regular meetings on the second and fourth Tuesday of each month. Therefore, formal action is required to cancel a meeting.
DISCUSSION:
The City Council has traditionally cancelled the second meeting in July. Many cities cancel one meeting in the summer to provide a summer break and to allow Council Members and staff to plan vacations without having to miss a meeting.
Therefore, staff normally proposes to take the action well in advance to provide sufficient notice for those making vacation plans.
Staff recommends the July 25, 2023 meeting be cancelled since it provides time for the Council to complete any necessary budget amendments before the beginning of the fiscal year, while providing a meeting break prior to school returning to session for those who would like to plan a family vacation. The only disadvantage of cancelling a meeting is that it often results in lengthy agendas for meetings following and preceding the cancelled meeting.
COST ANALYSIS:
There may be a minor savings by reducing the staff time required related to the meeting.
Item No. 9 (E)
STAFF REPORT
DATE: FEBRUARY 28, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OCTAVIO HURTADO, PUBLIC WORKS DIRECTOR / CITY
ENGINEER
RE: CONSIDERATION OF AWARD OF BID FOR THE DIVE POOL
RESURFACING PROJECT, INCLUDING ADOPTING FINDING
OF A CATEGORICAL EXEMPTION, PURSUANT TO SECTION
15301 OF THE CEQA GUIDELINES
RECOMMENDATION:
It is recommended the City Council: 1) award the base bid for the Dive Pool Resurfacing Project as proposed by low bidder, R Roddick Pool Construction, in the amount of $165,115; 2) authorize the City Manager to approve change orders up to 10%; 3) appropriate an additional $60,000 from the General Fund unappropriated fund balance to the Aquatics budget for the project; and 4) adopt a finding of a Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines.
BACKGROUND:
The dive pool is experiencing delamination of the pool floor and walls causing unsafe conditions for continued use by the public. It was determined to be an urgent needed repair to avoid further and more serious damage. The project consists of draining, prepping and resurfacing the pool surface. The dive pool measures 35 ft by 35 ft and ranges from 7 to 12 feet in depth.
A request for bids was advertised on September 1, 2022 with bids due on September 30, 2022. The City did not receive any bids during the formal bid request. Staff reached out to R. Roddick Pool Construction who had previously inspected the dive pool to provide a bid. The bid was received with a recommendation to wait until the rain season is over to initiate the project to prevent uplift damage due to soil expansion when the pool is drained.
CITY COUNCIL
CONSIDERATION OF AWARD OF BID FOR THE DIVE POOL RESURFACING
PROJECT, INCLUDING ADOPTING FINDING OF A CATEGORICAL
EXEMPTION, PURSUANT TO SECTION 15301 OF THE CEQA GUIDELINES FEBRUARY 28, 2023
PAGE 2 OF 3
DISCUSSION:
The City received the following bid:
Contractor Base bid
R Roddick Pool Construction $165,115.00
Staff believes this is a good bid and the City will achieve the necessary repairs and safety upgrades for continued future use of the dive pool.
The increased cost is due primarily to increased work identified by the County Health Department, who performs annual inspections on the facility. As a result, the pool will receive a major safety upgrade to its drain. An additional drain will be installed to meet code to prevent a swimmer from getting stuck on the drain due to the suction of the water being circulated.
COST ANALYSIS:
The City Council approved an appropriation of $125,000 for the project in the FY 2022-23 budget amendments. The additional appropriation from the General Fund of $60,000 is necessary to address the requirement to improve the drain and contingencies.
ENVIRONMENTAL REVIEW:
Staff has performed a preliminary environmental assessment of this project and has determined that if it falls within the Categorical Exemption set forth in Section 15301 of the CEQA guidelines because the contract is for the maintenance and repair of existing streets, which will not result in the expansion of capacity of these streets. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Award Base Bid of the Dive Pool Resurfacing Project as proposed by low bidder, R. Roddick Pool Construction in the proposed amount of $165,115;
2. Reject bids and solicit new bids;
3. Do not award the Dive Pool Resurfacing Project and attempt to delay the project another year to address necessary funding in the next budget; or
4. Provide other direction to staff.
Estimate
Date
10/23/2022
Estimate #
991
Name / Address
Andrea Wasson
City of King City
212 S. Vanderhurst Ave
KIng City , Ca.93930
R RODDICK POOL
CONSTRUCTION
1270 Graham Hill rd
Santa Cruz .Ca.95060
Project
E-mail
[email protected]
Web Site
R.RODDICKPOOLCONSTRUCTION.NET
Total
ca lic # 592190
Description Qty Rate U/M Total
Dive pool size 35 x 35 x 7 ft to 14 ft in depth 0.00 0.00 LABOR / drain pool drill as needed to hydrostatic relief ... check complete surfaces for delaminating ( 150 sq ft of delamination repair included ) if its found complete removal is needed this would be an extra to this pricing .... Grind complete surface to assure adhesion under cut tile and
around all fittings ... To assure a water tite seal
set up temp scaffolding as needed ...
250 135.00 33,750.00
Mix and install adhesion promoting primer allow to cure / Provide all materials and labor to fiberglass entire pool surface applied at a rate of not less then 3/16" in thickness ..... All edges at fittings and tile shall be filled with a thickened resin mixture ... ( Putty ) completed surface shall be detail sanded and cleaned and then a complete topcoating applied as a finish ... step areas to be treated with a non skid glass powder .... finished color shall be white only
1 89,000.00 89,000.00
out of town expenses / charges ... / Motel charges and meals estimated three working weeks 5 men
15 1,000.00 15,000.00
HEALTH PERMIT FEES And all documents required by
the heath department shall be the responsibility of the city of King city ...
65.00 65.00
SUBTOTAL 137,815.00
estimated possible change in materials 15 % BUT ONLY
APPLIES TO MATERIALS
1 6,000.00 6,000.00
Exhibit 1
Estimate
Date
10/23/2022
Estimate #
991
Name / Address
Andrea Wasson
City of King City
212 S. Vanderhurst Ave
KIng City , Ca.93930
R RODDICK POOL
CONSTRUCTION
1270 Graham Hill rd
Santa Cruz .Ca.95060
Project
E-mail
[email protected]
Web Site
R.RODDICKPOOLCONSTRUCTION.NET
Total
ca lic # 592190
Description Qty Rate U/M Total
SUBTOTAL. (+$137,815.00)
> Added 1 contengency. (+$6,000)
Total change to estimate +$6,000
~~~~~~~~~~~~~~~~~~~~~~~~~
layout and demo floor area as need to split 8" existing plumbing with molded fiberglass 24" x 24" main drain
sumps (2) total drains must be installed a min of 36" apart per current code ...repair / replace any rebar as needed ... backfill with pea gravel and re pour demo area with concrete all labor and materials included
1 21,300.00 21,300.00
$165,115.00
Item No. 9 (F)
STAFF REPORT
DATE: FEBRUARY 28, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OCTAVIO HURTADO, PUBLIC WORKS DIRECTOR/CITY
ENGINEER
RE: CONSIDERATION OF APPROVAL OF CHANGE ORDER NO 1.1,
ADDING PURPLE PIPE TO PEARL STREET, TO THE 2022 KING
CITY SEWER IMPROVEMENTS PROJECT, INCLUDING
ADOPTING FINDING OF A CATEGORICAL EXEMPTION,
PURSUANT TO SECTION 15301 OF THE CEQA GUIDELINES
RECOMMENDATION:
It is recommended City Council: 1) approve change order No 1 to the 2022 King City Sewer Improvements Project adding purple pipe to Pearl Street, in the amount of $601,000.00; 2) appropriate an additional $600,000 to the project budget from the Sewer Fund; and 3) adopt a finding of a Categorical Exemption, pursuant to Class 1, Section 15301 (b) of the CEQA Guidelines.
BACKGROUND:
In September 2021, the California Regional Water Quality Control Board, Central Coast Region (Regional Board), adopted a new General Order to regulate municipal wastewater treatment facilities of 100,000 gallon per day capacity and larger. As part of this new General Order, new more stringent effluent limitations are required to be met for effluent nitrate-nitrogen which is limited to 10 mg/L, consistent with the Regional Board’s Basin Plan Objectives for protection of water quality.
The City’s existing WWTP is a pond system and is not capable of achieving nitrogen removal as required in the General Permit. The City is in the process of designing a new wastewater project to: 1) comply with the General Order; 2) increase treatment capacity to continue serving our City’s needs with anticipated growth for the next 20+ years; and 3) provide a tertiary component to the treatment plant, including transmission lines, to recycle the City’s wastewater for beneficial reuse into the future..
CITY COUNCIL
CONSIDERATION OF APPROVAL OF CHANGE ORDER NO 1.1, ADDING PURPLE PIPE TO PEARL STREET TO THE 2022 KING CITY SEWER
IMPROVEMENTS PROJECT, INCLUDING ADOPTING FINDING OF A
CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301 OF THE
CEQA GUIDELINES
FEBRUARY 28, 2023
PAGE 2 OF 3
The City has been working closely with the Regional Board, and State Board financing staff, to strive towards maximizing grant funding opportunities for the Project. Both Regional Board and State Board staff have been extremely supportive of the City, and it is anticipated the City could potentially receive grant funding for most, if not all, of the Project.
The City had originally planned to add the tertiary treatment portion of the facility in a phased approach through a partnership with Cal Water. If full funding is obtained through the State, staff now instead recommends to construct both components of the facility as one project and then sell the recycled water to Cal Water on a wholesale basis for resale to existing customers. Therefore, staff reviewed plans for distribution lines and recommends incorporating purple pipe into any street resurfacing projects where the distribution system is planned to avoid excavation on newly paved streets.
Improvement Plans and Specifications were put out to bid for the 2022 King City Sewer Improvements Project on August 26, 2022. The project consists of replacing the existing 6-inch clay sewer lines with 8-inch PVC sewer lines, connecting the existing sewer laterals to the new line, replacing the sanitary sewer manholes and providing trench restoration. In addition, the project includes grinding and paving 3 inches of asphalt concrete over the full width and length of the Lynn Street and Pearl Street. As a result, staff recommends the addition of purple pipe to the project.
DISCUSSION:
The City now may have the opportunity to obtain State funding for the recycled water distribution system in addition to the secondary and tertiary treatment facilities. This will enable the City to expand potential users to almost all parks, schools, the Fairgrounds, the Cemetery, Mills Ranch and Creek Bridge parking strips, and adjacent agriculture operations.
Carrollo Engineers has designed a citywide recycled water line transmission network and has identified Pearl Street as a street to include purple pipe to convey recycled water. Pearl Street will be a link between the future Downtown Addition development, King City Arts Magnet School, the Golf Course and the Fairgrounds. Since the current pipe replacement project on Pearl Street includes a full repaving of the street, it is prudent for the City to install the purple pipe now to prevent the street to be opened up after it has been newly paved and have a trench line in the street. The City will save construction costs by installing the pipe prior to the street being repaved.
February 10, 2023
Octavio Hurtado, PE, QSD
City of King City
Public Works Director/City Engineer
212 South Vanderhurst Ave
King City, CA 93930
(831) 386-5927
[email protected]
Re: 2022 King City Sewer Improvements - PCO #001.1, 8” C900 Waterline M.P.E. proposes to provide all labor, equipment, and material required to install fully restrained 2,400-LF of 8” PVC C900 DR18 [Purple] on Pearl Street. This proposal covers all work required to install the proposed 8” Waterline for future use and its final trench restoration prior to contract grind and overlay.
Work to be Performed (Extra Work):
o Installation of 2,400-LF of 8” PVC C900 DR18 [Purple] o Potholing
▪ Due to location of the proposed Waterline, additional potholing efforts will need to be performed, beyond what was covered under the original Contract. There are anticipated gas, sewer, and water that will need to be potholed for each structure.
Due to the alignment of the proposed waterlines, T.O.P elevations for these utilities will need to be verified along the proposed alignment. o Traffic Control
o 2,400-LF of 8” C900, assuming an average of 5’ to T.O.P ▪ Note: Due to the requirements for Purple C900 and Bell Restraints at each joint, for a fully restrained line, there are elevated costs associated with this material compared to the cost of standard Sewer SDR35.
o Sand Backfill for Initial and Intermediate Surface Restoration Requirements per City Standard Detail No. 013
o Trench Restoration after Contract Grind and before Overlay for Final Trench Restoration (post-grind / pre-overlay)
o Pressure Testing
Notes:
o Final Road Section to be 6” AC / 10” AB
o Fully Restrained Line by Bell Restraints
o MJ Caps to be installed at both ends to abandon for future use o Alignment of Waterline to be approximately 10-FT [North] off of newly installed Sewer Main o Layout of alignment to be walked with City and MPE prior to installation o Price based on Straight Run
o Does not include Fittings, TEE’s, Crosses, Crossings, Water Service Saddles, any Vertical/Horizontal Offsets, or Valves
o Does not include any work related to retrofitting or installing WS Laterals or Meters o Testing performed will include Filling and Pressure Testing o Testing does not include Flushing or Disinfection
o Pressure Test to be per City of King City (COKC) standard requirements for pressure testing specifically
o If Vertical or Horizontal offsets are needed due to unmarked/unforeseen utilities, work to install offsets on Time and Materials (T&M)
o Once Waterline has passed Pressure Test, the newly installed line will be depressurized and to remain in place for future use by COKC
o Price does not include tie-ins on either end of the Waterline o Price based on a LS amount
Total Add: $601,000.00
It is mutually agreed that for such change the Contract price is increased by $601,000.00 (Six Hundred One Thousand Dollars and 0/00)
M.P.E. specifically excludes the following items:
• Water Service Connections
• Tie-in’s
• Disinfection
• Flushing
• Engineering, permits, and/or fees, other than included in original Contract • All bonds, as-builts, and/or construction staking, other than included in original Contract • All construction testing
• SWPPP installation and/or maintenance, other than included in original Contract • Any items not specifically listed above
Please review the above cost proposal and, if acceptable, issue a change order for the work described. In addition, we request a Contract time extension of FOURTY-ONE (41) working day(s). If you have any questions, please feel free to contact me by phone at (831) 277-6132, or by email at [email protected].
Sincerely,
Darin Hopkins
Darin Hopkins
Project Manager
CIVIL ENGINEERS LAND SURVEYORS
CONSTRUCTION MANAGERS
HANNA-B UN TTI
EST. 1910 7651 EIGLEBERRY STREET GILROY 95020 CALIFORNIA OFFICE (408) 842-2173 FAX (408) 842-3662
EMAIL: ENGINEERING @ HANNABRUNETTI.COM
Plan & Profile - Pearl Street 4
2022 Sanitary Sewer Improvements MATCH LINE 12+00 - SEE BELOW MATCH LINE 12+00 - SEE ABOVE MATCH LINE 12+00 - SEE BELOW MATCH LINE 12+50 - SEE ABOVE Item No. 9 (G)
REPORT TO THE CITY COUNCIL
DATE: FEBRUARY 28, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF PARTICIPATION IN ADDITIONAL
NATIONAL OPIOID SETTLEMENTS
RECOMMENDATION:
It is recommended the City Council approve and authorize the City Manager to execute any forms necessary to participate in the opioid settlements with Teva and Allergan and chain pharmacies of CVS, Walgreens and Walmart.
BACKGROUND:
At the December 14, 2021 meeting, the City Council approved participating in national opioid settlements, which included McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation (“Distributors”) and Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (“Manufacturer”). The historic settlements totaling $26 billion were designed to bring needed relief to people who have struggled with opioid addiction. Cities were provided the option of participating and receiving a portion of the funds distributed through the State of California, participating and allocating the funds to the County, or not participating.
DISCUSSION:
Since that time, staff has set up a portal with the settlement administrators and the City has begun to receive small annual payments that will continue over an 18-year period. Funds must be used for activities to: 1) address the misuse and abuse of opioid products; 2) treat or mitigate opioid use or related disorders; or 3) mitigate other alleged effects of, including on those injured as a result of, the opioid epidemic. Staff is working on efforts to utilize funding to cover a portion of costs associated with the contract with Sun Street Centers for the diversion program and other local drug prevention efforts.
Item No. 9 (H)
REPORT TO THE CITY COUNCIL
DATE: FEBRUARY 28, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF DISPOSITION OF THREE RV TRAILERS
TO THE KING CITY FUNDAMENTAL BAPTIST CHURCH
RECOMMENDATION:
It is recommended the City Council 1) adopt a Resolution declaring three RV trailers as surplus property; and 2) approve and authorize the City Manager to execute a disposition agreement with the King City Fundamental Baptist Church to be used for temporarily housing homeless families.
BACKGROUND:
In June 2022, the County transferred four RV trailers to the City for the purpose of temporarily housing homeless families who were displaced from the riverbed due to the fire. The City obtained the trailers at no cost and used them to house four homeless families through the end of November 2022. The City leased a private parking lot in the industrial area to house the trailers for approximately one month and then four spaces at the Salinas Valley Fair Trailer Park for approximately five months. City staff have continued to coordinate with a number of agencies to provide strategies to address homelessness, particularly for the displaced families with children.
Most recently, staff have had a number of discussions with the Pastor of the King City Fundamental Baptist Church, who have provided a variety of assistance to homeless individuals and have expressed an interest in aiding the families. As a result, staff proposes to transfer three of the trailers to the Church for the purpose of assisting homeless families with children.
DISCUSSION:
Since the lease of spaces at the Salinas Valley Fair Trailer Park expired, the City has been temporary storing the trailers at the Public Works Corporation Yard.
Prior to disposition to the City, the trailers were used by the County at San
CITY COUNCIL
CONSIDERATION OF DISPOSITION OF THREE RV TRAILERS TO THE KING
CITY FUNDAMENTAL BAPTIST CHURCH
FEBRUARY 28, 2023
PAGE 2 OF 3
Lorenzo Park for COVID-19 patients. While the trailers are not very old, they were not designed for ongoing habitation, so the constant use over the past few years has resulted in poor condition of the interiors and equipment.
Staff has planned to dispose of three of the trailers and maintain ownership of one in storage for emergency purposes. Transferring them to the Church provides a good opportunity to enable them to continue to be used for the purpose intended when the City assumed ownership.
The Church has made arrangements to store the trailers at 318 Basset Street in parking spaces between each unit of an existing triplex owned by one of their parishioners. The use will be allowed under a temporary use permit issued by the Community Development Department. Therefore, use of the trailers at that location will be allowed for up to one year only. At the end of one year, the Church may relocate the trailers to property outside King City.
The Church’s plan is to not only provide housing, but to also assist the families to obtain resources, employment and future permanent housing. After the trailers were removed from the Salinas Valley Fair Trailer Park, the City has been able to make arrangements to house two of the families at the Monarch Inn, which is being paid for through Federal housing assistance funds the City is administering. That funding is good through the end of February. Therefore, if approved at this meeting by the Council, it will provide time for these families to be relocated to the new temporary housing location on March 1st and prevent them from being without shelter again.
The proposed site currently has one existing trailer with a tenant. They are working on plans to relocate them in the near future. If approved, two trailers will be disposed immediately to the Church and the third will be delivered to them when there are ready for it. When the City was operating the trailers at the Salinas Valley Fair Trailer Park, they required a significant amount of maintenance. Therefore, full disposition of the trailers to the Church will result in cost savings and reduced staff time.
COST ANALYSIS:
The City has approximately $3,000 remaining of funds received from the Coalition of Homeless Service Providers, which will be used to help provide utility connections at the new site. The only potential cost to the City is lost revenue from not sending the trailers to auction. Given the condition of the trailers, no significant amount of revenue was anticipated. Since the City acquired the trailers at no cost, this does not involve any out-of-pocket loss of City revenues.
Item No. 10 (A)
REPORT TO THE CITY COUNCIL
DATE: FEBRUARY 28, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF AN ORDINANCE OF THE CITY OF KING
AMENDING CHAPTER 17.03 OF TITLE 17 OF THE KING CITY
MUNICIPAL CODE PERTAINING TO COMMERCIAL CANNABIS
DISPENSARIES
RECOMMENDATION:
It is recommended the City Council introduce an Ordinance amending Municipal Code Chapter 17.03 of Title 17 of the King City Municipal Code pertaining to commercial cannabis dispensaries to be read by title only, open the hearing, allow for public testimony, close the hearing, waive first reading of the Ordinance, and approve introduction of the Ordinance.
BACKGROUND:
At the February 25, 2020 meeting, the City Council adopted an Ordinance allowing commercial cannabis storefront dispensaries. The Ordinance limited the number of dispensaries to a maximum of two and only in the following areas:
• The highway service area west of the freeway excluding properties located on Canal Street;
• The C2 zone; and
• The First Street corridor and highway service zoned areas on First Street from Ellis Street to Highway 101.
Under the process for selecting those eligible for the limited number of permits, applicants are required to participate in a pre-application process. Applications are evaluated by an outside third party based upon criteria set forth in the Ordinance and must meet a minimum threshold score. If more than two finalists exist, the top two applicants are selected through a lottery and are then eligible to apply for their conditional use permit (CUP), cannabis operations permit and other approvals required before allowing them to operate.
CITY COUNCIL
CONSIDERATION OF AN ORDINANCE AMENDING CHAPTER 17.03 OF TITLE 17 OF THE KING CITY MUNICIPAL CODE PERTAINING TO
COMMERCIAL CANNABIS DISPENSARIES
FEBRUARY 28, 2023
PAGE 2 OF 3
The intent was to establish a time limit for the top two applicants of 6 months to obtain their State license and 18 months to operate or their approval would become void. The next applicant on the list would then become eligible. The purpose of doing this was to ensure that the limited number of approvals wouldn’t be wasted with businesses not serious about or without the means to proceed in a timely manner.
Staff has determined there are discrepancies in the terminology used in the Ordinance. It establishes the time limits, but they are based on the time from issuance of a permit. The problem is that those selected through the preapplication process are not technically issued a permit. It is only an approval to proceed with the process. Issuance of what is referred to as the “cannabis operations permit” does not occur until the last step in the process.
As a result, the City has approved two applicants, but they have both exceeded the time limits. The first one selected was over two years ago and have not even begun building improvements or received a cannabis operations permit. Given the lack of clarity in the Ordinance regarding when the time limit starts and ends, staff has not been able to enforce the time restriction. Therefore, the City Attorney has drafted a recommended amendment to the Ordinance for Council consideration that will better define and establish time restrictions. The Planning Commission adopted a Resolution recommending the City Council adopt the Ordinance at their meeting on February 7th.
DISCUSSION:
The proposed amended Ordinance would make modifications to the time limit provisions. If adopted, applicants would have 9 months from the time they are selected in the pre-application process to obtain their conditional use permit and building permit or their selection in the pre-application process would be void.
They would then have an additional 9 months to obtain their operations permit and begin operation or their pre-selection process approval would be void.
Since the existing applicants have not had clear direction regarding the time restrictions, it is proposed to grant an extension for their pre-application process selection in order make the process as fair as possible. Therefore, under the proposed amended Ordinance, existing applicants will be granted a 12-month extension from the date of adoption of the Ordinance. Both have indicated they can meet that deadline for operation.
01222.0001/727660.1 1
ORDINANCE NO. 2023-816
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF KING AMENDING CHAPTER 17.03 OF TITLE 17 OF THE KING CITY MUNICIPAL CODE
PERTAINING TO COMMERCIAL CANNABIS ACTIVITY
WHEREAS, the City of King (“the City”) has the authority, under its police power, to enact regulations for the public peace, morals, and welfare of the City, California Constitution Article XI, section 7; and
WHEREAS, in 1996, with the adoption of Proposition 215, the California voters approved the Compassionate Use Act (Health and Safety Code § 11362.5) to ensure that seriously ill Californians have the right to obtain and use cannabis for medical purposes where that medical use is deemed appropriate and has been recommended by a physician, without fear of criminal prosecution under limited, specified circumstances; and WHEREAS, in 2004, the State Legislature enacted SB 420 to clarify the scope of the Compassionate Use Act and provide additional statutory guidance regarding medical cannabis use.
These statutes are codified at Health and Safety Code § 11362.7 et seq. and allow cities and counties to adopt supplemental rules and regulations; and WHEREAS, on October 9, 2015, almost 20 years after passage of the Compassionate Use Act, the Governor signed the Medical Marijuana Regulation and Safety Act (“Act”), comprised of California legislative bills AB 243, AB 266, and SB 643. The Act creates a comprehensive state licensing system for the commercial cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical cannabis, all subject to local control. One of the purposes of the Act is to ensure uniformity among jurisdictions that wished to allow commercial cannabis operations; and
WHEREAS, on June 27, 2016, the Governor signed SB 837, effective immediately, changing the terms in the Act from “medical marijuana” or “marijuana” to “medical cannabis” or “cannabis”, and making other technical changes to the Act. SB 83 7 also adopted regulations relating to the use and diversion of water in connection with the cultivation of cannabis; and WHEREAS, in 2016, the City adopted Title 17, Chapter 17.03 et seq., of the King City Municipal Code pertaining to Medical Cannabis Activity. The Medical Cannabis Ordinance places complete bans and regulations on medical cannabis activity in the City based upon various health, safety and welfare and land use findings relating to cannabis cultivation, dispensing, and consumption, which findings are incorporated herein by reference; and WHEREAS, in November of 2016 the Adult Use of Marijuana Act (“AUMA”) was approved by a majority of California voters. The purpose of AUMA is to establish a comprehensive system to legalize, control and regulate the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical cannabis, including cannabis products. Adults, age 21 and older, will be allowed to possess cannabis and grow certain amounts at home for personal use; and WHEREAS, the AUMA did not provide for a specific effective date, thus the provisions of the AUMA regarding personal use, possession, and cultivation of cannabis became effective the day after the November 8, 2016; and
01222.0001/727660.1 2
WHEREAS, the AUMA’s proposed Health & Safety Code section 11362.1(a)(3), will make it lawful under state and local law for any person twenty-one (21) years of age or older to “Possess, plant, cultivate, harvest, dry, or process not more than six living cannabis plants and possess the cannabis produced by the plants”; and
WHEREAS, the City wishes to enact regulations governing commercial cultivation of cannabis at this time; and
WHEREAS, the AUMA’s proposed Health & Safety Code section 11362.2(b) explicitly allows a city to “enact and enforce reasonable regulations to reasonably regulate” the cultivation of cannabis so long as the City does not prohibit the cultivation of up to six plants “inside a private residence, or inside an accessory structure to a private residence located upon the grounds of a private residence that is fully enclosed and secure”; and WHEREAS, several California cities have reported negative impacts of cannabis cultivation and related activities, including but not limited to offensive odors, criminal activity, (such as trespassing, theft, violent robberies and robbery attempts, and the illegal sale and distribution of cannabis), and public health and safety concerns (such as fire hazards and problems associated with mold, fungus, and pests); and
WHEREAS, cannabis plants, as they begin to flower and for a period of two months or more, produce a strong odor, offensive to many people, and detectable far beyond property boundaries if grown outdoors or if grown indoors without proper ventilation, odor control, and other regulations; and
WHEREAS, due to the value of cannabis plants and their strong smell (which alerts others to their locations), cannabis cultivation has been linked to break-ins, robbery, armed robbery, theft and attendant violence and injury, creating an increased risk to public safety; and WHEREAS, unregulated cannabis cultivation can be harmful to the welfare of the surrounding community and its residents and constitute a public nuisance, in that cannabis cultivation has been shown to involve avoidance of environmental laws and regulations, and has resulted in the pollution of waters and navigable waterways in the State of California; and WHEREAS, the indoor cultivation of cannabis has potential adverse effects to the structural integrity of the buildings in which cannabis is cultivated, and the use of high wattage grow lights and excessive use of electricity increases the risk of fire, which presents a clear and present danger to the buildings, its occupants, and neighboring buildings and residents; and WHEREAS, unregulated indoor cultivation of cannabis can be harmful to the public health, safety and welfare, given electrical modifications risk fires, poor irrigation can cause mold, overloaded circuits can leave entire neighborhoods in the dark, plant chemicals can cause illness, improper carbon dioxide mixed with insufficient ventilation can cause injury or death, and structural changes put first responders in danger if they rush into the unknown; and WHEREAS, the Attorney General’s August 2008 Guidelines for the Security and NonDiversion of Marijuana Grown for Medical Use recognize that the cultivation or other concentration of cannabis in any location or premises without adequate security increases the risk 01222.0001/727660.1 3
that nearby homes or businesses may be negatively impacted by nuisance activity such as loitering and/or crime; and
WHEREAS, MMRSA and AUMA mandated comprehensive state licensing and regulatory framework for cultivation, manufacturing, distribution, transporting, testing and dispensing cannabis and cannabis products; however, implementing regulations have yet to be written and state licenses may not be available until 2018; and WHEREAS, there are numerous well publicized studies and reports, as well as numerous documented incident in Monterey County and throughout the State, which show that unregulated cannabis activities have a significant adverse effect on the community; and WHEREAS, the City finds that the absence of a formal regulatory framework the adverse impacts frequently associated with commercial cannabis activities will occur, resulting in an unregulated and potentially significant negative impact upon the environment and upon public health, safety, and welfare of the community; and
WHEREAS, outdoor cannabis cultivation and unregulated indoor cannabis cultivation are likely to generate these negative effects on the public health, safety, and welfare in the City, based on the experiences of other cities; and
WHEREAS, pursuant to the above-described express statutory authority and its police power, the City desires to explicitly prohibit the outdoor cultivation of commercial cannabis for both recreational and medical use; and
WHEREAS, pursuant to the above-described express statutory authority and its police power, the City also desires to enact reasonable regulations for the indoor cultivation, manufacturing, testing, distribution, or consumption of commercial recreational and medical cannabis; and
WHEREAS, absent clear regulation, cannabis cultivation in the City poses a potential threat to the public peace, health, and safety, and, unless the City takes action to regulate it, the secondary impacts described above are likely to occur very soon after the passage of the AUMA; and
WHEREAS, the City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, visitors and businesses, and in preserving the peace and quiet of the neighborhoods within the City by regulating the commercial cultivation of recreational and medical cannabis; and
WHEREAS, nothing in this Ordinance shall be construed to: (1) allow any person to engage in conduct that endangers others or causes a public nuisance; or (2) allow any activity relating to the cultivation, manufacturing, testing, distribution, or consumption of cannabis which is illegal under state or federal law; and
WHEREAS, it is the intent of the City to regulation commercial cannabis activities, both recreational and medical, within the boundaries of the City.
NOW THEREFORE, the City Council of the City of King does hereby ordain as follows:
01222.0001/727660.1 4
SECTION 1. The above recitals are incorporated are hereby by reference.
SECTION 2. The Ordinance is exempt from the California Environmental Quality Act (“CEQA”) because it can be seen with certainty that there is no possibility that it will have a significant effect on the environment, and merely provides for ministerial regulations and procedures. (CEQA Guidelines § 15061(b)(3).) It is also exempt because it consists of regulations and restrictions on activities to assure the maintenance, restoration, or enhancement of natural resources and the environment by prohibiting environmentally destructive components of unregulated cannabis cultivation. (CEQA Guidelines §§ 15307 and 15308.) SECTION 3. The Sub-Section of Chapter 17.03, Section 17.03.040, of Title 17, of the King City Municipal Code specifically identified below is amended to read as follows; all other portions of Chapter 17.03 not amended remain in full force and effect:
Chapter 17.03
COMMERCIAL CANNABIS ACTIVITY
Section 17.03.040 Licenses and permits.
(h) Issuance of a commercial cannabis storefront dispensary permit shall be governed by the following requirements and/or limitations:
(10) The commercial cannabis storefront dispensary permit shall become void should the permittee fail to commence operations of the storefront dispensary within eighteen months of the issuance of the permit by the City.
A selected storefront dispensary permit applicant shall obtain a City issued Conditional Use Permit and all applicable building permits within nine (9) months of successfully completing the pre-application process as set forth in this Chapter; failure to meet the nine (9) month timeline shall automatically terminate their pre-application approval and authorization to apply for and/or be issued a cannabis permit or other permits required to operate the storefront dispensary. Further, a selected storefront dispensary permit applicant shall commence operations at the storefront dispensary within eighteen (18) months of successfully completing the pre-application process as set forth in this Chapter; failure to meet the eighteen (18) month timeline shall automatically terminate their pre-application approval and authorization to apply for and/or be issued a cannabis permit or other permits required to operate the storefront dispensary. Termination of a preapplication approval and authorization, cannabis permit application and/or cannabis permit pursuant to this section shall not be subject to appeal.
Nothing in this section shall prevent or prohibit a selected applicant whose pre-application approval and authorization, cannabis permit application and/or cannabis permit has been terminated from re-applying to a future pre-application process. Current selected storefront dispensary permit applicants shall have twelve (12) months from the enactment of this amendment by the City Council to commence operations of their storefront dispensary; failure to commence operations of their storefront dispensary 01222.0001/727660.1 5
within the twelve (12) month timeline shall automatically terminate their pre-application approval and authorization to apply for and/or be issued a cannabis permit or other permits required to operate the storefront dispensary.
SECTION 4: This Ordinance shall take effect and be in full force and effect from and after thirty (30) calendar days after its final passage and adoption. Within fifteen (15) calendar days after its adoption, the Ordinance, or a summary of the Ordinance, shall be published once in a newspaper of general circulation.
I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving reading, except by Title, at a regular meeting thereof held on the _____ day of _________________ 2023, and adopted the Ordinance after the second reading at a regular meeting held on the ____ day of _______________ 2023, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST
ERICA SONNE, City Clerk
CITY OF KING
By:
MIKE LEBARRE, Mayor
I, ______________________________, City Clerk of the City of King, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Ordinance passed and adopted by the City Council of the City of King on the date and by the vote indicated herein.
Item No. 11 (A)
REPORT TO THE CITY COUNCIL
DATE: FEBRUARY 28, 2023
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF COMMUNITY CHOICE AGGREGATION
FULL SERVICE AGREEMENT WITH PILOT POWER GROUP,
INC.
RECOMMENDATION:
It is recommended the City Council: 1) approve and authorize the City Manager to execute a new Community Choice Aggregation Full Service Agreement with Pilot Power Group, Inc. (“Pilot”) to continue operation of King City Community Power (KCCP); and 2) authorize the City Manager to make minor nonsubstantive changes to the agreement if necessary in a form approved by the City Attorney.
BACKGROUND:
The City launched its KCCP Community Choice Aggregation (CCA) program on July 2, 2018. The City entered into an agreement with Pilot Power Group (Pilot), Inc. on December 12, 2017 to operate KCCP. The program has been successful in achieving the initial goals of providing lower rates, no-cost solar for low-income households, the addition of solar street and park lights, and increased use of clean energy. The community has benefitted from a $371,000 in-kind donation of renewable credits to KCCP through Pilot, allowing it to be the smallest California CCA to achieve 100% renewable credit for KCCP’s entire customer base in 2020, and Pilot made an additional $10,000 donation to help fund the solar lighting at the local skate park. KCCP has also provided annual payments to cover City costs in the range of $30,000 to $90,000 on an annual basis.
The agreement with Pilot is due to expire on December 31, 2023. Under the terms of the agreement, if an extension was not reached by December 31, 2021, Pilot had the option to commence negotiations on a new agreement, automatically extend the agreement one year, or begin the process of transferring KCCP to another provider or back to PG&E. If a new agreement was
CITY COUNCIL
CONSIDERATION OF COMMUNITY CHOICE AGGREGATION FULL
SERVICE AGREEMENT WITH PILOT POWER GROUP, INC.
FEBRUARY 28, 2023
PAGE 2 OF 4
not entered into by June 30, 2022, they had the ability to select either of the latter two options.
Pilot submitted its request to commence negotiations in December 2021 and a new agreement was negotiated. However, a number of issues occurred at that time which depleted KCCP reserves and placed it in an unsure position regarding future economic sustainability. This was caused by a combination of a larger than expected PCIA charge, the pandemic’s impact on customer load, and a dramatic increase in power costs caused by the war in Ukraine.
As a result, at the May 24, 2022 meeting, the City Council and Pilot agreed to a one-year extension to provide time to develop better long-term financial projections prior to any future commitment. Rates were also set equal to PG&E.
That work has been completed and staff is recommending the City Council now approve a new replacement agreement which is attached for City Council consideration.
DISCUSSION:
The new agreement maintains Pilot’s original fee and fee structures, updates the prior agreement to reflect current circumstances, and contains a new termination date of December 31, 2029. A summary of the most meaningful changes to the agreement include the following:
• Maintenance of Prudent Reserve. The prior agreement included a higher than necessary prudent reserve, which became difficult to achieve.
It is recommended to establish a more realistic reserve in the new agreement along with new measures to better ensure it is maintained at all times. Therefore, KCCP has built and will now continuously maintain a Prudent Reserve equal to KCCP’s average monthly expenses. Each year in November, Pilot will calculate the Prudent Reserve amount by adding the prior 12 months of expenses divided by 12. A forecast pro forma for the following 24 months will then be built using the annual Prudent Reserve amount.
• Project Expenditures. KCCP Project Expenditures will be allocated based on accrued, rather than forecast net revenue (headroom). In other words, KCCP will pay for projects only with money already earned, rather than forecasted to be earned and budgeted.
• Reimbursement of KCCP related City Expenses. The City will be reimbursed annually in November at a fixed amount of $30,000 per year for reimbursement of staff costs involved in administering KCCP.
CITY COUNCIL
CONSIDERATION OF COMMUNITY CHOICE AGGREGATION FULL
SERVICE AGREEMENT WITH PILOT POWER GROUP, INC.
FEBRUARY 28, 2023
PAGE 3 OF 4
• Obsolete Provisions. Provisions covering KCCP’s launch, and other minor provisions that are no longer applicable, have been removed.
By protecting cash flow and maintaining fiscal discipline, the Prudent Reserve and Project Expenditures policies will help ensure that KCCP remains resilient in a changing energy market.
KCCP’s customer base has remained stable over time. On average, the net of the number of customers new to KCCP service versus customers leaving the service territory or opting out remains break even to a slight positive in favor of customer growth. In both English and Spanish, the KCCP call center answers an average of 64 customer service calls per month. In 2022, a major effort to refine customer service protocols was implemented, resulting in a major improvement in customer retention from the already low opt out rates:
Year Number of Opt Outs
2018 528
2019 74
2020 59
2021 52
2022 15
The primary option available to the City would be to phase out KCCP and pursue the option of joining Central Coast Community Energy. King City remains the only city in Monterey, Santa Cruz and San Luis Obispo counties not part of Central Coast Community Energy. While KCCP has maintained its rates equal to or better than Central Coast Community Energy, their rates are slightly lower at this time at somewhere between 2% and 3% below PG&E. Central Coast Community Energy also provides a number of programs and benefits not offered by KCCP. However, the problem remains that their programs are not designed to meet the needs of the King City community and the City would have little influence on their programs if it was a member. For example, many of the Central Coast Community Energy programs include rebates and incentives for electric vehicles and appliances that most King City residents could not afford to take advantage of even with the incentives. The primary reason KCCP was formed was to direct funding to programs specifically designed for King City’s needs, which continues to be a major advantage of the program.
COST ANALYSIS:
A copy of a new pro forma prepared for KCCP is attached, which is based on current power purchases. The results demonstrate that the projected headroom
Exhibit 1
Exhibit 2
Item No. 11 (B)
STAFF REPORT
DATE: FEBRUARY 28, 2023
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OCTAVIO HURTADO, PUBLIC WORKS DIRECTOR/CITY
ENGINEER
RE: CONSIDERATION OF AWARD OF BID FOR THE KING CITY
DOWNTOWN PLAZA CONSTRUCTION PROJECT
RECOMMENDATION:
It is recommended City Council: 1) award the base bid for the King City Downtown Plaza Construction Project as proposed by low bidder, F Loduca Co. in the amount of $1,790,154.55; and 2) authorize the City Manager to approve change orders not to exceed ten percent.
BACKGROUND:
In 2017, the City Council approved a draft Downtown Streetscape Conceptual Plan, which included a proposal to create a downtown plaza on the property at the northeast corner of Broadway Street and Vanderhurst Avenue. At the February 13, 2018 meeting, the City Council approved a purchase and sale agreement to acquire the property. At the April 9, 2019 meeting, the City Council then approved a contract with RRM Design Group to prepare conceptual design for the downtown plaza project. At the August 27, 2019 meeting, following an extensive public participation process, the City Council approved the final design and directed staff to proceed with construction drawings. In 2021, staff submitted and received approval for a Proposition 68 grant to fully fund the construction.
In 2022, Improvement Plans and Specifications were put out to bid for the Downtown Plaza Construction Project. Bids came well above the projected cost and budget. Staff believed this was due primarily to the current state of the economy which shifted rapidly in 2022 causing supply chain issue, labor shortages and substantial inflation in the cost of materials. Staff recommended and City Council approved rejecting all bids and rescheduling bidding again in winter 2022 and construction in spring and summer 2023.
CITY COUNCIL
CONSIDERATION OF AWARD OF BID FOR THE KING CITY DOWNTOWN
PLAZA CONSTRUCTION PROJECT INCLUDING ADOPTING FINDING OF A CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301 OF THE
CEQA GUIDELINES
FEBRUARY 28, 2023
PAGE 2 OF 4
Staff revised the bid documents based on feedback from the bidders. In December 2022, the project was put out to bid for a second time.
DISCUSSION:
The proposed project consists of the following:
• Demolition of existing site improvements;
• Construction of an approximately 1/3 acre plaza, including pavement, seat walls, stage, site furnishings, entry monument and custom trellis; • Coordination and installation of art/sculptures;
• Site utilities, including storm-drain, sewer, and electrical; • A new irrigation system and point of connection/water service; • Tree, shrub and turf-grass planting;
• Demolition of existing asphalt pavement and fence;
• Resurfacing of parking lot, including grinding pavement; and • Parking lot improvements, parking bumpers, striping, and signage.
Some of the most significant changes to the scope of work included eliminating new fence and fence replacement in the parking lot, and the children’s interactive art features will be purchased separately by the City because initial bids included a significant markup of those items.
The engineer’s estimate for construction was $1,800,000. The City received the following bids:
Contractor Bid
F Loduca Co. $1,790,154.55
Avila Construction Co $2,318,812.89
Monterey Peninsula Engineering $2,321,478.00
Staff reviewed the bids and researched past experience of the low bidder. As a result, staff has determined it is a responsive bid and recommends award of the bid at this time. Work on the mural and wind sculpture will be contracted for separately and are not included in this contract.
COST ANALYSIS:
King City received a grant for $2,135,000 for the construction, project management and soft costs. The projected project expenditures and revenues are as follows:
CITY COUNCIL
CONSIDERATION OF AWARD OF BID FOR THE KING CITY DOWNTOWN
PLAZA CONSTRUCTION PROJECT INCLUDING ADOPTING FINDING OF A CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301 OF THE
CEQA GUIDELINES
FEBRUARY 28, 2023
PAGE 3 OF 4
Expenses:
Plaza Construction $1,790,155
Contingency $179,000
Sculpture and Mural $150,000
Children’s Interactive Art Features $115,000
Construction Management $47,121
Total $2,281,276
Revenues:
Proposition 68 Grant $2,135,000
Park Development Impact Fee Fund $75,000
General Fund $71,276
Total $2,281,276
The City Council appropriated an additional $225,000 in the General Fund and $75,000 in Park Development Impact Fee Fund revenues in the FY 2022-23 budget adjustments. Therefore, only a portion of the General Fund amount appropriated is proposed to be used. This will free up some revenues for the Visitor and History Center and Downtown Streetscape Project expenses.
ENVIRONMENTAL REVIEW:
The City Council approved a Categorical Exemption under 15301 and 15302 under the California Environmental Quality Act (CEQA) for the project on October 20, 2020, which was filed with the County on October 23, 2020.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Award the Bid of the King City Downtown Plaza Construction Project as proposed by low bidder, F. Loduca Co. in the proposed amount of $1,790,154.55; authorize the City Manager to approve change orders not to exceed 10 percent;
2. Reject bids and solicit new bids;
3. Provide other direction to staff.
Exhibits:
1. Bid Summary
Exhibit 1