CITY OF LEMON GROVE
CITY COUNCIL
STAFF REPORT
Item No. 1.A
Meeting Date: February 21, 2023
Submitted to: Honorable Mayor and Members of the City Council Department: City Manager’s Office
Staff Contact: Kristen Steinke, City Attorney
Item Title: Waive the Full Text Reading of all Ordinances Summary: Waive the full text reading of all ordinances included in this agenda.
Ordinances shall be introduced and adopted by title only.
Environmental Review:
Not subject to review Negative Declaration
Categorical Exemption, Section Mitigated Negative Declaration Fiscal Impact:None.
Public Notification: None.
CITY OF LEMON GROVE
CITY COUNCIL
STAFF REPORT
Item No. 1.B
Meeting Date: February 21, 2023
Submitted to: Honorable Mayor and Members of the City Council Department: City Manager’s Office
Staff Contact: Joseph Ware, Finance Director
[email protected]
Item Title: City of Lemon Grove Payment Demands
Recommended Action: Ratify Demands.
Environmental Review:
Not subject to review Negative Declaration
Categorical Exemption, Section Mitigated Negative Declaration Fiscal Impact: None.
Public Notification: None.
City of Lemon Grove Demands Summary
Approved as Submitted:
Joseph Ware, Finance Director ACH/AP Checks 01/31/23-02/10/23 1,707,355.02 For Council Meeting: 02/21/23
Payroll - 02/07/23 130,783.93
Total Demands 1,838,138.95
CHECK NO INVOICE NO VENDOR NAME CHECK DATE Description INVOICE AMOUNT CHECK
AMOUNT
ACH Jan24 23 US Treasury 01/31/2023 Federal Taxes 1/24/23 25,515.75 25,515.75 ACH Jan23 Wage Works 01/31/2023 FSA Reimbursement - Jan'23 11,816.82 11,816.82 ACH 1/22/2023 Wells Fargo 02/02/2023 AT&T - Backup City Hall Internet- 12/23/22-1/22/23 85.60 4,634.07 6002515448 Canon Solutions-Canon Maintenance-Copier Usage 5/27/22-8/26/22 783.55 6002515448 Canon Solutions-Canon Maintenance-Copier Usage 8/27/22-11/26/22 183.80 12/11/2022 Cox - Calsense Modem Line: 2259 Washington 12/11/22-1/10/23 27.19 12/1/2022 Cox - Calsense Modem Line: 7071 Mt Vernon/Berry St Pk 12/1-31/22 27.19 12/9/2022 Cox - Calsense Modem Line: 8235 Mt Vernon/Berry St Pk 12/9-1/8/23 80.39 12/19/2022 Cox - Phone/PW Yard/2873 Skyline- 12/19/22-1/18/23 213.78 12/1/2022 Cox - Phone/City Hall 12/1/22-12/31/22 806.32 11/30/2022 Cox - Internet/Comm Ctr- 11/30/22-12/29/22 110.39 12/18/2022 Cox - Copy Room Fax Line- 12/18/22-1/17/23 4.16 12/1/2022 Cox - MainPhone/Fire 12/1/22-12/31/22 483.63
11/26/2022 Cox - City Hall Fire Alarm 11/27/22-12/26/22 92.93 12/7/2022 Cox - PEG Circuit Svc- 12/7/22-1/6/23 160.70
12/4/2022 Cox - Phone/Internet/Rec Ctr/3131 School Ln- 12/4/22-1/3/23 340.66 3105814386 Pitney Bowes - Postage Meter Rental 9/30/22-12/29/22 178.65 8003053006 Shredit - Shredding Service 12/21/22 107.40
9922059158 Verizon - Modems - Cardiac Monitors - 11/4/22-12/3/22 42.12 9922823754 Verizon - City Phone Charges- 11/13/22-12/12/22 348.86 9922823755 Verizon - PW Tablets- 11/13/22-12/12/22 163.49 9921018733 Verizon - MDC Engine Tablets- 10/21/22-11/20/22 393.26 ACH Feb 2023 Pers Health 02/02/2023 Pers Health Insurance - Feb23 56,376.78 56,376.78 ACH Jan23 Home Depot Credit Services 02/02/2023 Home Depot Charges - Jan'23 2,003.10 2,003.10 ACH Refill 2/1/23 Pitney Bowes Global Financial Services LLC 02/02/2023 Postage Usage 2/1/23 250.00 250.00 ACH Dec'22 San Diego County Sheriff's Department 02/07/2023 Law Enforcement Services - Dec'22 569,096.76 569,096.76 ACH 14249883 LEAF 02/07/2023 Ricoh C3502 Copier System-PW Yard - Dec'22 138.27 138.27 ACH 4822 Yiftee, Inc 02/08/2023 Buy One Get One Gift Cards-Phase 1 Addtl Funds - ARPA 25,000.00 25,000.00 ACH 1000348499 City of San Diego 02/09/2023 Metro Sewer System FY23 - Qtr 3 - 01/01/23-03/31/23 710,558.00 710,558.00 ACH 498918 Aflac 02/09/2023 AFLAC Insurance 2/9/23 1,561.06 1,561.06 ACH Feb7 23 Employment Development Department 02/09/2023 State Taxes 2/7/23 7,408.30 7,408.30 ACH Jan23-CC Wells Fargo 02/10/2023 Credit Card Processing-Mo.Svc - Jan'23 9.95 1,172.12 Jan23-CC Credit Card Transaction Fees- Jan'23 1,162.17
ACH Dec28-Jan24 23 California Public Empl Retirement System 02/10/2023 Pers Retirement 12/28/22-01/24/23 67,227.02 67,227.02 ACH Jan25-Feb7 23 Calpers Supplemental Income 457 Plan 02/10/2023 457 Plan 01/25/23-02/07/23 5,680.71 5,680.71 16767 7743 Aguirre & Associates 02/01/2023 Vista Azul Map Check - Sep'22 632.50 1,177.50 7748 Longdale Dr Street Dedication - Sep'22 545.00
16768 5656256538 AutoZone, Inc. 02/01/2023 Wiper Blades/Funnel 46.08 60.82 5656264367 Protectant/Car Wash 14.74
16769 Jan2023 Benefit Coordinators Corporation (BCC) 02/01/2023 Dental Insurance- PPO -Jan'23 4,251.10 4,251.10 16770 295380-Dec22 Burke, William, & Sorensen, LLP 02/01/2023 08250-0001 General Dec'22 11,736.20 19,103.32 295381-Dec22 08250-0008 Dec'22 6,743.90
295382-Dec22 08250-0010 Dec'22 99.60
295383-Dec22 08250-0011.002 Dec'22 262.77
295384-Dec22 08250-0011.003 Dec'22 207.10
295385-Dec22 08250-0011.005 Dec'22 53.75
16771 2022.4531 Chen Ryan Associates Inc. 02/01/2023 Prof Svc: Connect Main St Ph 3 thru 9/30/22 10,375.00 10,375.00 16772 1000348447 City of San Diego 02/01/2023 Municipal Sewer Transportation- FY23 Q2 10/1/22-12/31/22 9,504.83 9,504.83 CHECK NO INVOICE NO VENDOR NAME CHECK DATE Description INVOICE AMOUNT CHECK
AMOUNT
16773 4600 Clothing International, Inc 02/01/2023 Protective Clothing - PW 454.75 454.75 16774 Jan 23 Colonial Life 02/01/2023 Colonial Optional Insurance Jan-23 227.52 227.52 16775 7647 D- Max Engineering Inc 02/01/2023 3450 West SWQMP Review 11/11/22-12/16/22 1,540.00 2,485.00 7648 0 Bonita St SWQMP Review 12/1/22-12/31/22 945.00
16776 01111018 Discount Specialty Chemical 02/01/2023 Graffiti Remover 260.10 260.10 16777 Romero Eleventh Hour Mobile Notary 02/01/2023 Notarization - 1/27/23 90.00 90.00 16778 Feb-23 Fidelity Security Life Insurance Company 02/01/2023 Vision Insurance -Feb23 609.37 609.37 16779 265589 GB Auto Service, Inc. 02/01/2023 4 Tires/Installation/Alignment - LGPW#16 '14 Ford F150 1,449.00 1,449.00 16780 SIN024885 HDL Coren & Cone 02/01/2023 Contract Services Property Tax - Jan - Mar 2023 2,481.47 2,481.47 16781 SIN024707 Hinderliter De Llamas & Associates 02/01/2023 Eco Dev Svcs - Q4 2022/Yiftee Digital Giftcard Program 9,100.00 9,100.00 16782 15590 Infrastructure Engineering Corporation 02/01/2023 Prof Svc: Vista Azul 12/1/22-12/31/22 2,812.00 4,470.00 15601 Prof Svc: 1993 Dain Dr 12/1/22-12/31/22 148.00
15606 Prof Svc: 8373 Broadway 12/1/22-12/31/22 1,510.00 16783 1793 Janazz, LLC SD 02/01/2023 iPad/WiFi+Cellular for Online Agendas - Council Member Snow 428.92 471.92 1793 8 Port Switch - PW Basement 43.00
16784 155630 Knott's Pest Control, Inc. 02/01/2023 Monthly Bait Stations- Sheriff- Jan'23 60.00 120.00 155629 Monthly Bait Stations- Treganza Park- Jan'23 60.00 16785 5487923 Mallory Safety and Supply, LLC 02/01/2023 Nitrile Gloves 175.09 175.09 16786 3010380445 Parkhouse Tire Inc 02/01/2023 Backhoe 420E- Fleet Service/Flat Repair 289.24 289.24 16787 10798 Pro-Tech Industries 02/01/2023 Wipe Towels 654.08 654.08 16788 4155 Qual Chem Corp. 02/01/2023 Graffiti Wipes 701.59 701.59 16789 32766214 RCP Block & Brick, Inc. 02/01/2023 Bulk Concrete Sand - Fire Stn 217.88 2,655.50 32768865 Bulk Class II Road Base 602.71
32768945 Bulk Class II Road Base 602.71
32768949 Bulk Class II Road Base 602.71
32769072 Bulk Concrete Sand 217.88
32769744 Steel Tampers - PW 193.73
32772076 Bulk Concrete Sand - Fire Stn 217.88
16790 0092668 Rick Engineering Company 02/01/2023 Prof Svc: LG Housing Element Support - Dec'22 690.00 690.00 16791 149 RXR Plumbing, Inc. 02/01/2023 Plumbing Repair - Replace Water Heater - City Hall/Sheriff Stn 4,717.00 6,474.58 160 Plumbing Repair - Replace Water Pump - City Hall/Sheriff Stn 761.99 161 Plumbing Repair - Replace Water Faucet - Trolley Stn Restroom 995.59 16792 Sawyer Sawyer, Andrew 02/01/2023 Refund/Sawyer, Andrew/Deposit - Comm Ctr- 1/21/23 200.00 200.00 16793 12/21/2022 SDG&E 02/01/2023 3225 Olive- 12/21/22-1/20/23 316.33 698.07 12/23/2022 3410 Washington St- 12/23/22-1/24/23 95.73
12/21/2022 3500 1/2 Main- 12/21/22-1/20/23 236.09
12/21/2022 3601 1/2 LGA-12/21/22-1/20/23 49.92
16794 CLG-106 Smith, Kevin 02/01/2023 Service Call - AC Unit Repair/Unit #11 - City Hall 179.00 179.00 16795 6297 Spring Valley Lawn Mower Shop 02/01/2023 Saw Chain/Handle - PW/Streets 156.82 156.82 16796 121938888-0013 Sunbelt Rentals Inc. 02/01/2023 Equip Rental - Post Shore - Senior Ctr 12/22/22-1/18/23 127.97 745.10 134561446-0001 Propane 15.41
134857406-0001 Equip Rental - 45' Art Manlift with Jib - Holiday Ornaments 573.70 135084506-0001 Propane 28.02
16797 14097 T-Man Traffic Supply 02/01/2023 Sign Supplies/Signs - Streets 1,128.20 1,128.20 16798 STMT 12/22/2022 US Bank Corporate Payment Systems 02/01/2023 Fiber Optic Cable/Battery & Hose Clamps/Batteries 182.53 16,594.32 STMT 12/22/2022 Flood Light/Power Tools for E210 921.58 STMT 12/22/2022 LCC/Registration/2023 Conf/Snow 2/1/22-2/2/22 625.00 STMT 12/22/2022 LCC/Registration/2023 Conf/Mendoza 2/1/22-2/2/22 625.00 STMT 12/22/2022 LCC/Registration/2023 Conf/Romero 2/1/22-2/2/22 625.00 STMT 12/22/2022 Comm Specialist/Buffer Plan 36.00
STMT 12/22/2022 Zoom Subscription - Online Mtgs 93.99
STMT 12/22/2022 Supplies/Community Grant Program 58.67
STMT 12/22/2022 Supplies/Jones Retirement 674.66
STMT 12/22/2022 Flowers/Jones Retirement 160.00
STMT 12/22/2022 Food/Employee Recognition 935.91
STMT 12/22/2022 Job Postings/City Clerk 704.00
STMT 12/22/2022 PestEd Training/Landeros 195.00
STMT 12/22/2022 Protective Clothing - MSW 176.60
STMT 12/22/2022 LGPW#22 '03 GMC Sierra/Replace Front Bearings & Hub Assembly 1,497.51 CHECK NO INVOICE NO VENDOR NAME CHECK DATE Description INVOICE AMOUNT CHECK
AMOUNT
STMT 12/22/2022 Boots/Hard Hat/Safety Glasses 165.37
STMT 12/22/2022 Supplies/Trunk or Treat 17.74
STMT 12/22/2022 Supplies/Bonfire 12/2/22 4,778.65
STMT 12/22/2022 Supplies/Traffic Control Training 12/21/22 237.87 STMT 12/22/2022 LGPW#17 '99Ford F350 - Replace Fuel Pump/Oil Change 933.97 STMT 12/22/2022 LGPW#03 '00 Ford Ranger - Body Repair 1,098.14 STMT 12/22/2022 LGPW#20 '00 GMC 2500 - Replace Gas Pedal/Repair Electrical 660.00 STMT 12/22/2022 LGPW#08 '98 Ford Ranger - Install Signage 459.69 STMT 12/22/2022 LGPW#20 '00 GMC 2500 - Replace Throttle Body 554.06 STMT 12/22/2022 CSMFO Meeting/San Diego/Ware 12/8/22 40.00 STMT 12/22/2022 Airfare/CSMFO Conf/Sacramento/Ware 1/31/23-2/3/23 105.33 Snacks/Training/Biohazard & Heat/PW 12/15/22 32.05
16799 24092 Van Dermyden Makus 02/01/2023 Legal Svcs: Matter 02418 thru 12/31/22 361.08 361.08 16800 73523418 Vulcan Materials Company 02/01/2023 Asphalt 191.78 1,402.92 73531273 Asphalt 130.68
73531274 Asphalt 202.16
73533024 Asphalt 188.33
73535331 Asphalt/SS1 5 Gallon Bucket 261.44
73535332 Asphalt 428.53
16801-16821 ***VOIDS*** ***VOIDS*** 02/08/2023 PRINTING ERROR 0.00 0.00 16822 Jan2023 Benefit Coordinators Corporation (BCC) 02/08/2023 Dental Insurance- PPO -Jan'23 4,132.40 4,132.40 16823 Jul-Sep 22 California Building Standards Commission 02/08/2023 BSA Fees: Jul-Sep'22 159.30 159.30 16824 2022.4828 Chen Ryan Associates Inc. 02/08/2023 Prof Svc: Connect Main St Ph 3 thru 12/31/22 852.50 17,996.00 2022.4829 Prof Svc: Connect Main St Ph 1-2 thru 12/31/22 4,268.50 2022.4835 Prof Svc: Sidewalk Master Plan (Contract 2022.27) thru 12/31/22 12,875.00 16825 1000348905 City of San Diego 02/08/2023 Fuel Services-PW: Jan'23 2,448.86 2,448.86 16826 7667 D- Max Engineering Inc 02/08/2023 D-Max Stormwater Prof Svcs 12/1/22-12/31/22 3,541.50 3,541.50 16827 221444 Dell Awards 02/08/2023 Name Plate for Lobby Portrait - Snow/Councilmember 12.93 25.86 Name Plate for City Council Mtgs - Koch/Fire Chief 12.93 16828 Jul-Sep22 Department of Conservation 02/08/2023 Qtrly SMIP Fees - Jul-Sep'22 332.60 332.60 16829 OSIP70318 Department of Industrial Relations 02/08/2023 Workers Comp Admin Assessment 7/1/22-6/30/23 1,848.35 1,848.35 16830 Harrington Eleventh Hour Mobile Notary 02/08/2023 Notarization - 1/31/23 75.00 75.00 16831 12/12-15/22 EsGil, LLC 02/08/2023 75% Building Fees- 12/12/22-12/15/22 8,710.44 16,131.99 12/19-22/22 75% Building Fees- 12/19/22-12/22/22 7,421.55 16832 IN328325 Geotab USA, Inc. 02/08/2023 Monthly ProPlus Plan 197.50 197.50 16833 1795 Janazz, LLC SD 02/08/2023 IT Services- City Hall- Jan'23 2,500.00 2,500.00 16834 2216-02 Law Offices of Angel Ho 02/08/2023 Legal Svcs - Nov/Dec'22 9,744.00 9,744.00 16835 2/7/23 MissionSquare 02/08/2023 Deferred Compensation PPE 2/7/23 780.77 780.77 16836 10907 Project Partners, Inc 02/08/2023 Contracted Svc: Interim PW Manager/Cablay 10/11/22-10/27/22 13,910.00 32,890.00 10958-A Contracted Svc: Interim PW Manager/Cablay 10/31/22-11/23/22 18,980.00 16837 INV00068272 RapidScale Inc. 02/08/2023 Virtual Hosting/Back Up Svc/Cloud Storage/Svr 1/31/23-2/27/23 4,529.82 4,529.82 16838 19570A(10) Rick Engineering Company 02/08/2023 Prof Svc: FY21-22 Sewer Replacement & Maint Proj(2021-24) Nov'22 4,976.50 11,394.03 19570A(11) Prof Svc: FY21-22 Sewer Replacement & Maint Proj(2021-24) Dec'22 6,417.53 16839 3568860625/0223 SDG&E 02/08/2023 Electric Usage:St Light 1/1/23-1/31/23 2,448.34 6,026.79 4154920380/0223 Electric Usage:St Light 1/1/23-1/31/23 3,578.45 16840 8348110010123 Sparkletts 02/08/2023 PW Yard - Water 95.41 95.41 16841 14191 T-Man Traffic Supply 02/08/2023 Sign Supplies/Re-Do Concrete - Streets 218.79 218.79 16842 613 The Gavares Group 02/08/2023 City Leadership Development Team Bldg Workshop - 1/27/23 4,050.00 4,050.00 1,707,355.02 1,707,355.02
CITY OF LEMON GROVE
CITY COUNCIL
STAFF REPORT
Item No. 1.C
Meeting Date: February 21, 2023
Submitted to: Honorable Mayor and Members of the City Council Department: City Manager’s Office
Staff Contact: Deborah Harrington, Interim City Clerk
[email protected]
Item Title: Approval of City Council Meeting Minutes
Recommended Action: Approval of City Council Meeting Minutes, meeting of February 7, 2023.
Environmental Review:
Not subject to review Negative Declaration
Categorical Exemption, Section Mitigated Negative Declaration Fiscal Impact: None.
Public Notification: None.
MINUTES OF THE REGULAR MEETING
OF THE LEMON GROVE CITY COUNCIL
Lemon Grove Community Center
3146 School Lane, Lemon Grove, CA 91945
TUESDAY, FEBRUARY 7, 2023 at 6:00 P.M.
The City Council also sits as the Lemon Grove Housing Authority, Lemon Grove Sanitation District Board, Lemon Grove Roadway Lighting District Board, and Lemon Grove Successor Agency.
Call To Order:
Mayor Vasquez called the Regular City Council Meeting to order at 6:05 p.m.
Present:
Mayor Vasquez, Mayor Pro Tem George Gastil, Councilmember Jennifer Mendoza (6:06 pm), Councilmember Liana LeBaron and Councilmember Alysson Snow.
Absent: None
Staff Members Present:
Lydia Romero, City Manager, Elizabeth Mitchell, Deputy City Attorney, Brent Koch, Fire Chief, Patrick McEvoy, San Diego Sheriff’s Lieutenant, Izzy Murguia, Public Works Director, and Deborah Harrington, Interim City Clerk.
Pledge of Allegiance:
Led by Councilmember Snow.
Changes to the Agenda:
Motion by Councilmember LeBaron to pull the List of Demands from the Consent Calendar.
Motion failed for lack of a second.
Presentation(s)
Sheriff Lt. McEvoy provided a presentation on the Sheriff’s Harm Reduction Kit Program.
Mayor Vasquez made a presentation of Government Finance Officers Association Distinguished Budget Award to Finance Director Joseph Ware.
Public Comment:
Email Submitted:
• Barbara Gordon
• Joshua Klein
In-Person:
• Mark Gracyk
• John Wood
• Roberto Alvarez
• Mario Chacon
• Leonard Kottong
• Jean Duffy
• Thomas McAferty
• Laura Hook
• D.W. Donahoo
• Theresa Rosiak-Proffit
City of Lemon Grove Minutes February 7, 2023
2 Consent Calendar:
1.A Waive Full Text Reading of All Ordinances on the Agenda.
1.B City of Lemon Grove Payment Demands
1.C Approval of City Council Minutes of Regular Meetings held March 1, 2022 and January 17, 2023.
1.D Accept the FY 2020-21 Street Rehabilitation Project as Complete (Contract No. 2021- 15) and Adopt Resolution No. 2023-3925 accepting the FY 2021 Street Rehabilitation project as complete (Contract No. 2021-15).
Action: Motion by Mayor Pro Tem Gastil second by Councilmember Snow, to approve the Consent Calendar.
The motion passed by the following vote:
Ayes: Mendoza, Snow, Gastil, Vasquez
Noes: LeBaron
Absent: None
Report(s) to Council:
2. Award of Agreement (No. 2023-03) with Sweeping Corp of America for Street Sweeping Services
Report presented by Izzy Murguia, Public Works Director Public Comment:
Email Submitted: None
In-Person: Jacquelyn Clark
City Council provided questions/comments of staff.
Action: Motion by Mayor Pro Tem Gastil second by Councilmember Mendoza, to adopt Resolution No. 2023-3926, awarding an agreement with Sweeping Corp of America (SCA) for street sweeping services and authorize the City Manager to execute the necessary documents.
The motion passed by the following vote:
Ayes: LeBaron, Mendoza, Snow, Gastil, Vasquez
Noes: None
Absent: None
City Council Reports on Meetings Attended at the Expense of the City Mayor Vasquez
• Met with Retirement Community
• Health Event at UCSD
• Women of Color Event
• Received Award from Community of Light
• SANDAG – noted Councilmember Mendoza designed was attend City of Lemon Grove Minutes February 7, 2023
3 Councilmember Snow
• League of California Cities – New Councilmember and Mayor Conference • Met with Community Groups – CASA, Neil Sisters – CNA program • Soroptomist – Human Trafficking
• Bay Pack Summit on Homelessness
• Chico Federation – Housing Options
• Women of Color Event
Councilmember LeBaron
• Received concerns with Fire Department Overtime
Councilmember Mendoza
• Met with Congresswoman Sara Jacobs
• Met with Jean Duff, CASA regarding Tobacco Licensing
• Lemon Grove Food Distribution
• Point in Time Homelessness Count
• League of California Cities Meeting, Transportation and Public Works • Heartland Fire
• MTS Board Meeting
• Sandag Board Meeting
Mayor Pro Tem Gastil
• East County Economic Development Council
• MTS Nominating Committee Meeting
• Appointed to Access Advisory Committee and MTS to Sandag Regional Planning • Sandag Regional Plan
• Martin Luther Day Parade
• Provided comments on former Councilmember Tom Clabby
City Manager Report
• League of California Cities Conference
• Point in Time Homeless Count
• Provided update on SDG&E regarding Light at Palm Street • Railroad Crossing Lights – Street modifications required • Update on Monterey Heights School safety signs
Adjournment
Members of the City Council provided comments and condolences regarding the passing of former Councilmember Tom Clabby.
Mayor Vasquez adjourned the meeting at 8:12 p.m. in the Memory of Tom Clabby. The next regularly scheduled City Council meeting is scheduled to be held on February 21, 2023.
Deborah A. Harrington
Interim City Clerk
Harris and Associates Contract
Amendment
February 21, 2023
Page | 1
LEMON GROVE SANITATION
DISTRICT
DISTRICT BOARD
STAFF REPORT
Item No. 1.D
Meeting Date: February 21, 2023
Submitted to: Honorable Chair and Members of the District Board Department: Sanitation District
Staff Contact: Izzy Murguia, Public Works Director
[email protected]
Item Title: Amendment to Agreement with Harris and Associates Recommended Action: Adopt a resolution approving an amendment to the agreement with Harris and Associates for Five-Year Sanitation District Rate Study (No. 2021-18).
Background: On December 21, 2021, the District Board awarded an agreement with Harris and Associates (Harris) to perform the Five-Year Sanitation District Rate Study for Fiscal Years 2022-23 through 2026-27 (Study). The purpose of the Study is to evaluate the existing and anticipated wastewater cost of service and make recommendations for adjustments to the annual sewer service charges. The original timeline to complete the Study was anticipated to require six months, with completion prior to submittal of the FY 2022-23 property tax bills.
Early in the rate study process, the District decided to delay the Study for one additional year to provide sufficient time to thoroughly evaluate the proposed change in rate structure methodology for commercial customers and to allow adequate time to comply with Proposition 218 requirements. Because of this, the rates for FY 2022-23 remained unchanged from the FY 2021-22 rates. The current sewer rates are effective through June 30, 2023.
Discussion: The initial proposal for the Study assumed a six-month schedule for completion of the Scope of Services. Based on the award date of December 21, 2021, the agreed upon schedule for completion was January 1, 2022, through June 30, 2022.
Section 5 of the agreement specifies that the agreement will expire one year from the Harris and Associates Contract
Amendment
February 21, 2023
Page | 2
effective date of February 9, 2022, for an expiration date of February 9, 2023. The proposed schedule extends the agreement termination date to August 31, 2023, and is retroactive to February 9, 2023. This timeline provides for completion of the original Scope of Services and the Additional Scope of Services discussed herein, as well as through the submittal of the parcel tax roll to the County by August 10, 2023.
In addition to the impacts of extending the schedule mentioned above, challenges have been encountered during the rate study process requiring an additional level of effort to complete, as well as the District’s request for Harris to perform new tasks to complete the Study.
A summary of the challenges and additional efforts required is listed below:
• Additional level of effort to accommodate ongoing project management activities throughout the schedule extension.
• Additional level of effort to understand Metro costs and projections under the revised method for paying Pure Water Program costs and updating the analysis to incorporate.
• Additional level of effort to “true-up” the Revenue Requirement Analysis to extend the planning period for an additional year and (1) incorporate actual financial records for FY 2021-22; (2) incorporate the FY 2022-23 budget and update future projections; (c) incorporate the updated five-year capital program; and (4) update the proposed annual sewer rate adjustments.
• Additional level of effort to address challenges encountered with the customer data regarding type of property and associated water usage.
• New tasks, including attending an additional Board meeting, supporting District staff in their conduct of a commercial customer property audit / incorporating results, and providing support as needed for public outreach/rate implementation efforts.
A detailed discussion of the Additional Scope of Services and breakdown of costs is included in Proposed Amendment 1 to the Lemon Grove Sanitation District Five-Year Sanitation District Rate Study (Attachment A). The amount of the proposed amendment is $34,944 for a new total contract amount of $114,444.
Environmental Review:
Not subject to review Negative Declaration
Categorical Exemption, Section Mitigated Negative Declaration Fiscal Impact: The cost of the amended scope of services is $34,944, resulting in a total agreement amount not-to-exceed $114,444.
Harris and Associates Contract
Amendment
February 21, 2023
Page | 3
Public Notification: None.
Staff Recommendation: Adopt a resolution (Attachment B) approving an amendment to the agreement with Harris and Associates for Five-Year Sanitation District Rate Study (No. 2021-18).
Attachments:
Attachment A – Amendment 1 to the Agreement with Harris and Associates for Lemon Grove Sanitation District Five-Year Sanitation District Rate Study (No. 2021-18) Attachment B - Resolution
Harris and Associates Contract
Amendment
February 21, 2023
Page | 4
ATTACHMENT A
FEBRUARY 9, 2023
LEMON GROVE SANITATION DISTRICT
FIVE-YEAR SANITATION DISTRICT RATE STUDY
(CONTRACT NO. 2021-18)
PROPOSED AMENDMENT 1
SCOPE OF SERVICES AND COST ESTIMATE
CONTRACT SCHEDULE EXTENSION
PURPOSE:
The purpose of the amendment is to extend the Contract Term and provide Additional Scope of Services, as discussed with District staff, and deemed necessary for the completion of the sewer rate study.
On December 21, 2022, the District Board awarded an agreement with Harris & Associates (HARRIS) to perform the Five-Year Sewer Rate Study for fiscal year (FY) 2022/23 through FY 2026/27. Early in the rate study process, the District decided to delay the study for an additional year to provide sufficient time to thoroughly evaluate the proposed change in rate structure methodology for commercial customers from a Rate per Equivalent Dwelling Unit to a volume-based rate relying on metered water records and wastewater strength characteristics, and to allow adequate time to comply with Prop 218 noticing requirements.
In addition to the impacts of extending the schedule, challenges were encountered during the rate study process requiring an additional level of effort to complete, as well as the District’s request for HARRIS to perform new tasks to complete the study. HARRIS is requesting an amendment to the total contract fee for the Additional Scope of Services described herein. The proposed amendment is $34,944 for a new total contract amount of $114,444.
A summary of the Additional Scope of Services is listed below, followed by additional detail by task starting on Page 2.
• Additional level of effort to accommodate ongoing project management activities throughout the schedule extension.
• Additional level of effort to understand Metro costs and projections under the revised method for paying Pure Water Program costs and updating the analysis to incorporate. • Additional level of effort to “true-up” the Revenue Requirement Analysis to extend the planning period for an additional year and (1) incorporate actual financial records for FY 2021/22; (2) incorporate the FY 2022/23 budget and update future projections; (c) incorporate the updated five-year capital program; and (4) update the proposed annual sewer rate adjustments.
Harris and Associates Contract
Amendment
February 21, 2023
Page | 5
• Additional level of effort to address challenges encountered with the customer data regarding type of property and associated water usage.
• New tasks, including attending an additional Board meeting, supporting District staff in their conduct of a commercial customer property audit / incorporating results, and providing support as might be requested for public outreach/rate implementation efforts.
SCHEDULE EXTENSION:
The Rate Study assumed a six-month schedule for completion of the Scope of Services. Based on the award date of December 21, 2021, the agreed upon schedule for completion was January 1, 2022, through June 30, 2022. Section 5 of the Contract specifies that the agreement will expire one year from the effective date (February 9, 2022) for an expiration date of February 9, 2023. The proposed schedule extends the contract termination date to August 31, 2023. This timeline provides for completion of the original Scope of Services and the Additional Scope of Services discussed herein, as well as through the submittal of the parcel tax roll to the County by August 10, 2023.
ADDITIONAL SCOPE OF SERVICES:
A description of the additional level of effort by task to be conducted by Harris & Associated (HARRIS) is described below:
Task 1 – Project Management
Additional level of effort to perform general project coordination and administrative activities and QA/QC procedures throughout the extended schedule for completion. The original study schedule anticipated six (6) months to complete study tasks. The proposed schedule extension through August 31, 2023, adds an additional 14 months for a total 20-month schedule to complete.
Task 2 – Project Initiation Meeting and Data Collection Additional level of effort for collection and review of updated Metro cost projections for FY 2023/24 through FY 2027/28.
Task 3 – Capital Facilities Plan Assessment
Additional level of effort to collect updated information and “true-up” the five-year capital funding strategy to accommodate the extension of the study planning period for an additional year. This includes updating the capital funding strategy to incorporate actual capital fund cash balances as of FY ending June 30, 2022, and the District’s updated five-year capital program through FY 2027/28.
Task 4 – Revenue Requirement Projections
Additional level of effort to work with the District to understand and incorporate current and future projections for Metro annual capacity and treatment costs and the Pure Water Program. This includes revising the original modeled approach for projecting Pure Water costs. The original method assumed upfront cash funding of Pure Water costs using the Pure Water reserve the District funded for this purpose. The revised approach assumes Metro will debt-finance the projects and charge annually for the costs. The District now plans to fund those annual costs by drawing down the Pure Water reserve on an annual basis.
Harris and Associates Contract
Amendment
February 21, 2023
Page | 6
Additional level of effort to collect updated information and “true-up” the five-year revenue requirement forecast to accommodate the extension of the study planning period for an additional year.
This includes updating the analysis with actual data as of FY ending June 30, 2022, incorporating the District’s FY 2022/2023 operating budget for detail revenues and expenses, and updating future year projections and proposed rate adjustments through FY 2027/28.
Task 5 – Classification Costs – no additional work
Task 6 – Cost of Service Analysis
Additional level of effort to collect and match water usage records from the Helix Water District to the District’s sewer customers listed on the “Total Sewer Assessment Accepted to the Tax Rolls for year 2020-21” and to match the type of property for each customer to the proposed customer classes. This exercise is necessary to appropriately assign sewer system costs to customer classes and to design the proposed sewer rate structure. The additional effort is to conduct additional research and iterations of analysis to address several challenges encountered during the initial process. These include:
• Matching Helix Water District water usage records to District sewer customers (by street address). Additional research to attempt to match initially “unmatched” records. • Discrepancies in “type of property” identified for individual customers from the various data sources. The initial assignment of commercial customers to the proposed new classes (commercial-low, commercial-medium, and commercial-high) was based on matching County use codes/description for each property. In reviewing those results, several discrepancies were found between County use codes, Helix classification of customers, and the indicated type of property based on customer name/description.
Task 7 – Rate Structure Review and Development
Minor task overrun covered by Task 8 cost savings.
Task 8 – Rate Design – no additional work
Task 9 – Prop 218 Noticing – no additional work
Task 10 – Prepare Reports and Study Deliverables – no additional work Task 11 – Meetings and Presentations
Additional level of effort due to the schedule extension, several additional District staff meetings to discuss project status, study issues and review results; and one (1) additional District Board meeting to review draft results in advance of the Public Hearing. The original budget assumed a total of four (4) District staff review meetings and two (2) Board meetings. A total of 12 meetings (including 1 Board meeting) have been held to date, and an additional 10 meetings (including 2 Board meetings) are anticipated for a total of 22 meetings through study completion.
Task 12 – (New Task) Commercial Audit Findings Update
Based on the data issues discussed under Task 8, Harris recommended that the District conduct an audit of all commercial customers to verify the type of business and validate the assignment of each commercial property to the appropriate commercial sewer strength classification (Low, Medium, High).
Harris and Associates Contract
Amendment
February 21, 2023
Page | 7
This is a new task to support the District in the commercial audit and incorporate the audit findings into the customer data base for the calculation of commercial sewer bills for the property roll submittal.
Task 13 – (New Task) Public Outreach/Implementation Support This is a new task to support District staff with questions and/or additional information to assist District staff in conducting public outreach to affected commercial property owners and/or other implementation issues that might arise in the process. The estimated cost includes a level of effort of up to 8 hours of assistance.
Harris and Associates Contract
Amendment
February 21, 2023
Page | 8
COST ESTIMATE:
HARRIS will provide the Additional Scope of Services based on monthly billings covering actual work performed. Bills will include labor classifications, respective rates, and hours worked. The proposed amendment is $34,944 for new total contract amount of $114,444.
Project Task Original
Contract
Amount
Proposed
Amendment
Amount
Total New
Contract
Amount
Labor Expenses:
Task 1: Project Management $2,320 $4,597 $6,917
Task 2: Project Initiation / Data Collection $4,690 $416 $5,106 Task 3: Capital Facilities Plan Assessment $4,920 $367 $5,287 Task 4: Revenue Requirement Projections $7,210 $7,078 $14,288 Task 5: Classification of Costs $900 $0 $900
Task 6: Cost of Service Analysis $11,230 $18,688 $29,918 Task 7: Rate Structure Review / Development $3,240 $473 $3,713 Task 8: Rate Design $7,840 $(753) $7,087
Task 9: Prop 218 Noticing $7,780 $0 $7,780
Task 10: Reports / Deliverables $7,820 $0 $7,820
Task 11: Meetings / Presentations $6,705 $12,713 $19,418 Task 12: (New) Commercial Audit Findings Update $0 $4,770 $4,770 Task 13: (New) Public Outreach / Implementation Support $0 $1,440 $1,440 Total Task Labor $64,655 $49,789 $114,444
Reimbursable Expenses (1)
Report Production/Mailing $320 $(320) $0
Total Expenses $320 $(320) $0
Subtotal Task Fees $64,975 $49,469 $114,444
Additional Contingency $3,275 $(3,275) $0
Option to Perform Prop 218 Mailers $11,250 $(11,250) $0 Total Contract Amount $79,500 $34,944 $114,444
[1] Harris will not charge for reimbursable direct expenses for report production/mailing; travel airfare, hotel, rental car etc. for three (3) planned onsite Board meetings.
Harris and Associates Contract
Amendment
February 21, 2023
Page | 9
ESTIMATED PROJECT SCHEDULE TO COMPLETION:
Major milestones for study completion include the following:
• Notice to Proceed: December 21, 2022
• Board Meeting #1 (Rate study presentation and Board discussion): January 17, 2023 • Rate Study Report Deliverable: March 3, 2023
• Prop 218 Notice Mailing: March 3, 2023
• Board Meeting #2 (Public hearing to introduce ordinance): April 18, 2023 • Board Meeting #3 (Second reading and adoption of ordinance): May 2, 2023 • New Rates will Take Effect: July 1, 2023
• Tax Roll Submittal to County: August 10, 2023
Harris and Associates Contract
Amendment
February 21, 2023
Page | 10
ATTACHMENT B
RESOLUTION NO. 2023 -
A RESOLUTION OF THE DISTRICT BOARD OF THE LEMON GROVE
SANITATION DISTRICT, AMENDING AN AGREEMENT WITH HARRIS &
ASSOCIATES TO PERFORM THE FIVE-YEAR SANITATION DISTRICT RATE STUDY (NO. 2021-18)
WHEREAS, periodically, the Board of Directors adopts a financial model to analyze various costs needed to operate and manage a sanitary sewer system; and WHEREAS, each fiscal year the rates charged per equivalent dwelling unit should account for the increased costs associated with transporting and treating wastewater from the District, maintaining the capital infrastructure in the District, and provide necessary fund reserves for unforeseen operational and capital shortfalls; and WHEREAS, the District relies on the expertise of a consulting firm that possesses expertise in completing sanitation rate studies and financial modeling plans; and WHEREAS, on December 21, 2022, the District awarded a professional services agreement to Harris & Associates to perform a Five-Year Sanitation District Rate Study; and
WHEREAS, challenges were encountered during the rate study process requiring an additional level of effort to complete; and
WHEREAS, the District requested Harris to perform new tasks to complete the study; and
WHEREAS, the additional level of effort and new tasks require additional time to complete; and
WHEREAS, the District Board finds it in the public interest to amend and extend the professional services agreement with Harris & Associates for a project budget not to exceed $114,444.
Harris and Associates Contract
Amendment
February 21, 2023
Page | 11
NOW, THEREFORE, BE IT RESOLVED that the District Board of the Lemon Grove Sanitation District, Lemon Grove, California, hereby:
1. Amends the professional services agreement with Harris & Associates to perform a Five-Year Sanitation District Rate Study; and
2. Extends the term of the professional services agreement with Harris & Associates through August 31, 2023, retroactive to February 9, 2023; and
3. Establishes a project budget not to exceed one hundred fourteen thousand four hundred forty-three dollars ($114,444); and
4. Authorizes the Executive Director or designee to execute the necessary documents.
PASSED AND ADOPTED on February 21, 2023, the District Board of the Lemon Grove Sanitation District of Lemon Grove, California, adopted Resolution No. 2023-_______, passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Racquel Vasquez, Board Chair
Attest:
__________________________
Deborah Harrington, Interim District Clerk
Approved as to Form:
_________________________
Kristen Steinke, District Attorney
Approval of Final Map TM 0066
February 21, 2023
Page | 1
CITY OF LEMON GROVE
CITY COUNCIL
STAFF REPORT
Item No. 1.E
Meeting Date: February 21st 2023
Submitted to: Honorable Mayor and Members of the City Council Department: Community Development
Staff Contact: Spencer Richard, Assistant Planner
[email protected]
Item Title: Approval of Final Map for Tentative Map TM0066 located West of Bonita Street and North of Alicia Lane
Recommended Action: Adopt a resolution (Attachment A) approving the Final Map for Tentative Map TM0066 and authorize the City Clerk to accept the easements on the Final Map.
Background and Discussion: On June 21, 2022, the Lemon Grove City Council adopted Resolution No. 2022-3897 (Attachment B) approving Tentative Map TM0066 which authorized the subdivision of a 2.22-acre site into 14 single family lots and 1 private street on an existing undeveloped site with easements for public emergency access and utilities located west of Bonita Street and north of Alicia Lane, Lemon Grove, California.
Bonita Place, LLC the owner of said property, has satisfied the conditions of approval for the proposed subdivision and requests approval of the Final Map for TM0066.
Performance bonds and subdivision agreements are in place to ensure that conditions of approval are met and the project is completed in the manner approved by City Council.
If adopted, the resolution (Attachment A) will authorize the City Clerk to execute the Final Map and accept the easements.
Environmental Review:
Not subject to review Negative Declaration
Categorical Exemption, Section Mitigated Negative Declaration Fiscal Impact: There is no direct impact to the City’s general fund. The City will collect $2,688.21 per housing unit in accordance with the Regional Transportation Approval of Final Map TM 0066
February 21, 2023
Page | 2
Congestion Improvement Program (RTCIP). Additionally, the Sanitation District will receive $3,509 per unit for connection costs.
Public Notification: None
Attachments:
Attachment A – Resolution
Attachment B – Adopted Resolution No. 2022-3897
Approval of Final Map TM 0066
February 21, 2023
Page | 3
Attachment A
RESOLUTION NO. 2023-_______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LEMON GROVE, CALIFORNIA, APPROVING A FINAL MAP FOR TENTATIVE MAP TM0066 WHEREAS, On June 21, 2022, the Lemon Grove City Council adopted Resolution No. 2022-3897 approving Tentative Subdivision Map TM0066, as meeting the requirements of the City’s Subdivision Ordinance and the California Subdivision Map Act; and
WHEREAS, the Final Map for Tentative Map TM0066 attached hereto as Exhibit ‘A’ has been submitted and meets the requirements as set forth in the California Government Code section 66433, et. Seq. and is now ready for approval by the City Council; and
WHEREAS, Bonita Place LLC, as the owner of the project has paid all fees required by the conditions for processing of the Final Map; and WHEREAS, the Manager of Development Services and the City Engineer have found said Final Map of Tract No. 0066 substantially conforms to the conditionally approved Tentative Map, as required by the California Subdivision Map Act.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lemon Grove, California, hereby finds:
1. The Final Map is consistent with the General Plan, the California Subdivision Map Act, and is in substantial conformance with the previously approved Tentative Map (TM0066); and
2. The Final Map for Tentative Map No. 0066 is hereby approved, and the City Clerk is authorized and directed to certify this fact on the face of the Final Map; and
3. All easements identified on the Final Map are accepted by the City of Lemon Grove; and
4. Authorizes the City Clerk to record a certified copy of this resolution.
Approval of Final Map TM 0066
February 21, 2023
Page | 4
Attachment A
PASSED AND ADOPTED on February 21, 2023, the City Council of the City of Lemon Grove, California, adopted Resolution No. 2023-_______, passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Racquel Vasquez, Mayor
Attest:
__________________________
Deborah Harrington, Interim City Clerk
Approved as to Form:
_________________________
Kristen Steinke, City Attorney
Approval of Final Map TM 0066
February 21, 2023
Page | 5
EXHIBIT A
Approval of Final Map TM 0066
February 21, 2023
Page | 6
Approval of Final Map TM 0066
February 21, 2023
Page | 7
Approval of Final Map TM 0066
February 21, 2023
Page | 8
Approval of Final Map TM 0066
February 21, 2023
Page | 9
February 21, 2023
Page | 1
CITY OF LEMON GROVE
CITY COUNCIL
STAFF REPORT
Item No. _2___
Meeting Date: February 21, 2023
Submitted to: Honorable Mayor and Members of the City Council Department: City Manager’s Office
Staff Contact: Lydia Romero, City Manager
Item Title: Shop Local Digital Gift Card Program – Phase 2 Recommended Action: Adopt resolution extending the contract with Yiftee, Inc., Hinderliter, de Llamas and Associates, Inc. (HDL), East County Chamber of Commerce and allocate and additional $150,000 from American Rescue Plan Act (ARPA) funds for the purpose of continuing the digital gift card program to support local businesses.
Background and Discussion:
At the November 1, 2022 City Council meeting, the City Council approved a Shop Local program that featured a Digital Gift Card Program that focused on getting customers into local businesses while helping to stimulate the local economy. The Lemon Grove Shop Local - Digital Gift Card Program launched right before the Thanksgiving holiday in time for the holiday shopping season. As of Monday, February 13, 2023, the program lists 22 local businesses participating in the program; the monetary value of the digital gift cards purchased, including the buy one get one (BOGO) free promotion is $189,350.
Of that amount the redemption value is $122,200, this is direct dollars going to the participating merchants.
Due to the success of the program, the original allocation of funds is nearly expended.
Staff is requesting to continue this program and that the City Council allocate an additional $150,000 to the gift card program. Staff also would like direction on phase 2 of the program; should the city continue the current BOGO promotion or should phase 2 lower the BOGO threshold to a percentage of the value purchased? As an example, a gift card is purchased for $100 and the program would provide a free $50 gift card for a combined $150 for dollars to be spent locally. Does the City Council want to cap the number of cards purchased in any of the categories? As an example, there will be 250 gift cards available in the $150 dollar amounts. Does the Council want to reconsider the number of gift cards that can be purchased, perhaps dropping from 2 to 1 card that will get the BOGO.
The partnership of the "Shop Lemon Grove" campaign with HdL and the East County Chamber of Commerce has been extremely essential to its success. The expertise in February 21, 2023
Page | 2
marketing and program assistance with analytics and merchant interaction is necessary to the execution of the program. Staff would like to extend the contractual assistance of both HDL and East County Chamber of Commerce for phase 2 of the program.
Environmental Review:
Not subject to review Negative Declaration
Categorical Exemption, Section Mitigated Negative Declaration Fiscal Impact: There will be no expenditure of General Fund dollars. The funds for the program will come from ARPA funds received by the City, these funds can be used to support small businesses located within Lemon Grove.
Public Notification: None
Staff Recommendation:
Attachments: Attachment A – Resolution Adopt resolution extending the Shop Local Digital Gift Card Program including all the components to implement the program
Attachment B – November 1, 2022 staff report
February 21, 2023
Page | 3
Attachment A
RESOLUTION NO. 2023-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LEMON
GROVE, CALIFORNIA CONTINUING THE SHOP LOCAL DIGITAL GIFT
CARD PROGRAM TO SUPPORT LOCAL MERCHANTS IN LEMON GROVE
WHEREAS, the COVID-19 pandemic has resulted in numerous detrimental impacts on a global scale and include national, regional, and local impacts; WHEREAS, the Lemon Grove business community have experienced these impacts;
WHEREAS, the Lemon Grove City Council seeks ways to assist the Lemon Grove small business community in their recovery from the impact of the pandemic; WHEREAS, the pilot program is proven successful in meeting its goals; and WHEREAS, the City Council would like to continue this program by appropriating an additional $150,000 in American Rescue Plan Act funds, as well as continue the contracts with Yiftee, HDL and the East County Chamber of Commerce to stimulate the local economy and assist small businesses in recovery from the COVID-19 pandemic.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lemon Grove, California, hereby approves as follows:
SECTION 1. The City Council does hereby declare that the recitals set forth above are true and correct and are incorporated herein by reference.
SECTION 2. The City Council hereby appropriates $150,000 in American Rescue Plan Act funds for purposes of carrying out a pilot digital gift card program to support local small businesses in Lemon Grove.
SECTION 3. The City Council does hereby authorize the City Manager to sign an amendment to the previously approved Professional Services Agreement with Yiftee, Inc., to provide the community with a digital gift card program.
SECTION 4. The City Council does hereby authorize the City Manager to extend the contract with HdL Companies to assist in marketing, advertising, and other support services to continue the digital gift card program, that does not exceed the city mangers contracting authority.
SECTION 5. Furthermore, the City Council does hereby authorize the City Manager to extend the agreement with the East County Chamber of Commerce to assist in marketing, outreach and other support services to implement the digital gift card program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lemon Grove, California, hereby adopts the Lemon Grove Governance Manual.
February 21, 2023
Page | 4
PASSED AND ADOPTED on ______, 2023, the City Council of the City of Lemon Grove, California, adopted Resolution No. _______, passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Racquel Vasquez, Mayor
Attest:
__________________________
Deborah Harrington, Interim City Clerk
Approved as to Form:
_________________________
Kristen Steinke, City Attorney
Shop Local Digital Gift Card Program
November 1, 2022
Page | 1
CITY OF LEMON GROVE
CITY COUNCIL
STAFF REPORT
Item No.
Meeting Date:
Submitted to:
Department:
Staff Contact:
Item Title:
3. November 1, 2022
Honorable Mayor and Members of the City Council
City Manager’s Office
Lydia Romero, City Manager; [email protected]
Shop Local Digital Gift Card Program
Recommended Action: Adopt a resolution (Attachment A) approving a contract with Hinderliter, de Llamas and Associates, Inc. (HDL); a contract with Yiftee, Inc. for the development of the gift card program, and allocate $150,000 from American Rescue Plan Act (ARPA) funds for the purpose of implementing a strategy to support local businesses with a shop local digital gift card program.
Background: The COVID-19 pandemic has had numerous negative impacts on communities, and one of the hardest hit sectors has been small businesses. Many such businesses have experienced significant financial strains due to the shutdowns, labor shortages, and supply chain inflation costs. Small businesses make up over 99% of businesses in the nation and account for 60 million jobs. Due to the pandemic, over 200,000 of those businesses closed their doors permanently in 2020 and that number continues to rise two years later. In Lemon Grove, small businesses account for a super majority of businesses in town.
Discussion: Small businesses in Lemon Grove continue to struggle two years after the pandemic began and are now dealing with rising inflation. Our businesses depend on local foot traffic to be successful, and the pandemic has been especially hard on our community due to its economically, disadvantaged status. It may take years for the small business sector to recover, as it did from the 2008-09 recession. The Digital Gift Card Program is an innovative way to stimulate local consumer spending, thereby supporting locally owned small and independently owned businesses in Lemon Grove. When dollars are spent locally, most are reinvested in the local community in the form of jobs and taxes.
The JHDL/Yiftee digital gift card program is being used by the cities of South Gate, San Leandro, Murrieta, Oakley, Hercules, Hawthorne, Canyon Lake Angles Camp, Pinole just to name a few. The Yiftee Community Digital Gift Card Program is a cost-effective way to stimulate the local economy and assist small businesses in recovery. It also provides additional savings to residents who shop locally. As an example, the proposed digital gift Attachment B
Shop Local Digital Gift Card Program
November 1, 2022
Page | 2
card program would have the resident buy a gift card valued at $25, and the program would provide another $25 gift card for a combined $50 in gift card dollars to be spent locally. In other words, it is a buy one and get one free for residents.
To initiate the program, the City would enter into Yiftee's Community Card Customer Agreement (Exhibit A). There is no set-up or monthly costs. The costs paid to Yiftee are:
1. The value of the bonus card provided,
2. The $1 plus 5% eDelivery fee (purchaser fee) plus a $1 gift fee per card, and
3. The Participating Merchant fees charged by MasterCard.
To assist with the branding costs associated with the development of the "Shop Local Lemon Grove" campaign, marketing of the digital gift card (in English and Spanish), and related signage and posters for participating businesses, we are proposing an agreement with HdL Companies through there EconSolutions division. HdL has partnered and brought this program to several of their clients over the last year. HdL would work with staff and the East County Chamber of Commerce to help ensure a successful program.
HdL Companies' costs for their services would be in a not to exceed contract of $12,500.
HdL Companies has been a critical partner with the City of Lemon Grove providing information on sales tax and property tax for numerous years.
Staff has spoken to the East County Chamber of Commerce CEO and presented this program and to seek their assistance in supporting the program and help with the marketing efforts to the Lemon Grove business community. The discussion was positive and felt it would help drive business to Lemon Grove’s small business community.
The goal of having the program operational in time for the holiday shopping season to help promote a shop local campaign and small business Saturday. The digital gift card can only be used at participating Lemon Grove Businesses that are independently owned, not corporate owned nor multi-franchisee owned. The City can limit the type of business categories that can participate. Most cities have limited the type of participating businesses to:
1. Retail1,
2. Restaurant/Café,and
3. Personal Services such as:
a. Hair Stylists,
b. Barbers,
c. Estheticians,
d. Nail salons,
e. Dry cleaners,
f. Pet groomers, and
g. Fitness/specialty studios, including martial arts, yoga, dance, and music. 1 City can limit retail offering to not include Cannabis, smoke shops or liquor stores Shop Local Digital Gift Card Program
November 1, 2022
Page | 3
The business must also operate in a physical storefront location, have a current City business license, and have no current code enforcement actions pending against them.
The values for the Digital Gift Cards will include $25, $50, and $100 amounts.
Environmental Review:
Not subject to review Negative Declaration
Categorical Exemption, Section Mitigated Negative Declaration Fiscal Impact: There will be no expenditure of General Fund dollars. The funds for the program will come from ARPA funds received by the City, these funds can be used to support small businesses located within Lemon Grove.
Public Notification: None
Staff Recommendation: Adopt a resolution (Attachment A) approving Shop Local Digital Gift Card Program including all the components to implement the program.
Attachment:
Attachment A – Resolution
Shop Local Digital Gift Card Program
November 1, 2022
Page | 4
Attachment A
RESOLUTION NO. 2022-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LEMON
GROVE, CALIFORNIA ADOPTING APPROVING A SHOP LOCAL DIGITAL
GIFT CARD PROGRAM WITH COMPONENTS AND IMPLEMENTATION
MEASURES TO SUPPORT LOCAL MERCHANTS IN LEMON GROVE
WHEREAS, the COVID-19 pandemic has resulted in numerous detrimental impacts on a global scale and include national, regional, and local impacts; and WHEREAS, the Lemon Grove business community have experienced these impacts; and
WHEREAS, the Lemon Grove City Council seeks ways to assist the Lemon Grove small business community in their recovery from the impact of the pandemic; and WHEREAS, to support this pilot program the City Council is appropriating $150,000 in ARPA funds to pay for:
1. The $1 plus 5% eDelivery fee (purchaser fee) plus a $1 bonus gift fee per card,
2. A bonus gift card to incentivize the use of the program and provide a benefit to all community members,
3. Branding costs associated with the development of the "Shop Local Lemon Grove" campaign, and
4. Marketing costs for advertisement and promotion of the program and related point-of sale signage and posters for participating businesses; and WHEREAS, working with Yiftee, Inc., and HdL Companies who have significant experience in starting up such shop local programs using digital gift cards that have proven extremely successful for participating businesses and residents will be a costeffective way to stimulate the local economy and assist small businesses in recovery from the COVID-19 pandemic.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lemon Grove, California, hereby approves as follows:
SECTION 1. The City Council does hereby declare that the recitals set forth above are true and correct and are incorporated herein by reference, SECTION 2. The City Council hereby appropriates $150,000 in American Rescue Plan Act funds for purposes of carrying out a pilot digital gift card program to support local small businesses in Lemon Grove,
SECTION 3. The City Council does hereby authorize the City Manager to sign a Professional Services Agreement with Yiftee, Inc., attached hereto as Exhibit "A," to provide the community with a digital gift card program, Shop Local Digital Gift Card Program
November 1, 2022
Page | 5
SECTION 4. The City Council does hereby authorize the City Manager to sign a contract with HdL Companies to assist in marketing, advertising, and other support services to implement the digital gift card pilot program, and SECTION 5. Furthermore, the City Council does hereby authorize the City Manager to enter into an agreement with the East County Chamber of Commerce to assist in marketing, outreach and other support services to implement the digital gift card pilot program.
PASSED AND ADOPTED on November 1, 2022, the City Council of the City of Lemon Grove, California, adopted Resolution No. 2022-_____, passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Racquel Vasquez, Mayor
Attest:
__________________________
Audrey Malone, City Clerk
Approved as to Form:
_________________________
Kristen Steinke, City Attorney
Community Card Customer Agreement
THIS AGREEMENT (the “Agreement”) is made effective as of __________, 2022 (the “Effective Date”) by and between Yiftee Inc., a Delaware corporation, with an address at 325 Sharon Park Drive #215, Menlo Park, CA 94025 (“Yiftee”) and _____________________________________ with an address at _________________________________________(“Customer”). The parties agree a follows:
1. Definitions.
1.1 “Merchant” means a merchant, prospect or other contact that may be using or desire to use Yiftee Services to redeem eGifts.
1.2 “Participant” means a Merchant who has opted to participate in a Community Card by running an Activation Card and agreeing to the Merchant Agreement.
1.3 “Yiftee Services” means Yiftee’s gift-giving platform. It is the technology foundation for Community Cards.
1.4 “Purchaser” means a person or entity that purchases or redeems eGifts.
1.5 “eGift” means a digital virtual gift voucher used as payment for goods or services at a Participant.
1.6 “Offer” or “Offers” mean specific benefits that Participants provide to consumers who use their Community Cards in their store, as determined by the Participants and posted on their eGift Card web page.
2. Merchant Enrollment.
2.1 Merchant Enrollment Obligations
(a) Customer will collect a set of Merchants who have elected to participate in the Yiftee Services.
Merchants must all be located in the same state in the USA, due to varying gift card laws by state. Each Merchant must agree to the Yiftee Community Card Merchant Agreement located on the Yiftee.com website. Merchants who have not agreed to the Merchant Agreement will not be able to utilize the Yiftee Services to redeem eGifts. Customer will upload into the Yiftee Services or provide the names of the Merchants who intend to participate to Yiftee. Upon the agreed upon launch date, the billing for the Yiftee Services will begin (“Commencement Date”). This billing will include the agreed-upon cost for each Participant or group thereof as defined in Appendix A. (b) Yiftee will provide to Customer or directly to Merchants, upon receipt of the set of Merchant names in 2.1a, a set of unique Activation Cards to be run by each Merchant. Customer will inform Merchants of their individual Activation Card and provide instructions on its use. Additionally, Customer will inform Merchants that running the Activation Card implies consent to the Merchant Agreement located on the Yiftee.com website.
(c) As Merchants run the Activation Cards, they will be included in the set of Merchants enabled to participate in the Yiftee Services, i.e. the Participants. Participant may also post their Offers to be available for eGift Card holders who redeem gifts in their stores. (d) Yiftee will bill Customer or Merchants as described in Appendix A. Customer can add or remove Participants and fees will be adjusted accordingly, if applicable. There will be no retroactive adjustments allowed by Yiftee (that is, a cancelled Participant’s billing obligation will result in that Participant’s cost to Customer, as defined in Appendix A, to be eliminated beginning only on the next annual billing cycle).
A Participant may be added to the list of Participants at any time (“Enrollment Time”), with billing adjustment for said Participant to begin immediately and to be included in the current month’s billing. (e) Each party shall comply with good, ethical and moral business practices and all applicable laws and regulations in engaging in any activities here under.
(f) Fees and payment terms applicable to the subject matter here under shall be as set forth in Appendix A. Customer is not entitled to compensation other than what is described in Appendix A. (g) Customer is responsible and liable for any disputes or liability arising out of its relationships with Merchants and Participants, except with respect to any liability of Yiftee under this agreement.
2.2 Yiftee Materials.
Yiftee may provide Customer with certain materials for use in conjunction with promoting the Yiftee Services here under (“Yiftee Materials”). No rights or licenses, express or implied, are granted in those Yiftee Materials or otherwise, except as expressly and unambiguously set forth in this Agreement.
2.3 Limited Licenses.
Subject to the terms and conditions of this Agreement, Yiftee hereby grants to Customer, a nonexclusive, non-transferable, non-assignable, non-sublicensable right and license to access and use the Yiftee Services and Yiftee Materials solely for the purposes of Customer’s performance of this Agreement.
2.4 Trademark License.
Subject to the terms and conditions of this Agreement, Yiftee hereby grants Customer and Customer hereby grants Yiftee a non-exclusive, non-transferable, non-assignable, non-sublicensable, royalty-free license to use Yiftee’s or Customer’s name, trade names, trademarks, service marks, and logos (collectively, a party’s “Marks”) solely in connection with Customer’s and Yiftee’s promotion and marketing of the Yiftee Services, subject to written usage guidelines, if any, made mutually available.
3. Ownership. As between the parties, Yiftee owns all right, title and interest in and to the Yiftee Services, Yiftee’s Marks and the Yiftee Materials. Customer owns all right, title and interest in and to Customer’s Marks.
4. Warranties Disclaimer. YIFTEE AND ITS LICENSORS MAKE NO WARRANTIES TO CUSTOMER,
EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIM ALL IMPLIED WARRANTIES OF MERCHANTABILITY,
NONINFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE, AND ALL WARRANTIES ARISING OUT OF USAGE OR TRADE, COURSE OF DEALING AND COURSE OF PERFORMANCE.
5. Liability Limitation. EXCEPT FOR LIABILITY ARISING UNDER SECTION 7, NEITHER PARTY (NOR ITS
LICENSORS) WILL BE LIABLE OR OBLIGATED WITH RESPECT TO ANY SUBJECT MATTER OF THIS
AGREEMENT OR UNDER ANY CONTRACT, TORT, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE
THEORY, WHETHER OR NOT ADVISED OF THE POSSIBILITY OF SUCH DAMAGES WHATSOEVER, FOR ANY
SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE, RELIANCE OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS, REVENUE, DATA OR USE AND IN NO EVENT SHALL EITHER PARTY’S LIABILITY EXCEED THE GREATER OF $500 OR THE AMOUNTS PAID AND/OR PAYABLE BY YIFTEE TO
CUSTOMER (AND/OR BY CUSTOMER TO YIFTEE, IF PAYMENTS ARE PAYABLE BY CUSTOMER TO YIFTEE IN ACCORDANCE WITH PROPOSAL) HEREUNDER IN THE TWELVE (12) MONTH PERIOD PRECEDING THE APPLICABLE CLAIM.
6. Term and Termination.
6.1 Term. This Agreement shall be effective as of the Effective Date and shall continue in full force on an annual period from the Effective Date, and thereafter shall automatically renew annually, unless and until either party terminates this Agreement pursuant to Section 6.2.
6.2 Termination.
(a) Either party may, at its option, terminate this Agreement upon thirty (30) days written notice to the other party for any reason or for no reason whatsoever. (b) Either party may terminate this Agreement if the other party materially breaches a term of this Agreement and fails to cure such breach within fifteen (15) days after receipt of written notice of such breach from the non-breaching party.
(c) Participants are obligated to honor all outstanding eGifts issued by Yiftee for the entire duration of those eGift's validity periods. Termination does not relieve Participants from honoring conditions outlined in the Merchant Agreement.
6.3 Effect of Termination. Upon any termination: (a) Customer shall immediately cease all promotion of the Yiftee Services and shall immediately return to Yiftee, or at the option of Yiftee, destroy, all Confidential Information (as defined below) of Yiftee disclosed to Customer, Yiftee Materials, and any Yiftee Services, hardware and software provided to Customer here under, (b) Yiftee shall immediately return to Customer, or at the option of Customer, destroy, all Confidential Information of Customer disclosed to Yiftee here under, and (c) all licenses granted under this Agreement shall immediately cease. The following Sections shall survive termination and remain in effect 1, 3, 4, 5, 6.3, 7 and 8. Any termination of this Agreement shall be without prejudice to any other rights or remedies available under this Agreement or at law.
7. Confidentiality. Because of this Agreement, the parties may have access to information that is confidential to the disclosing party (“Confidential Information”). Confidential Information shall include, without limitation, Purchaser lists and information relating to the parties’ products and pricing and all information designated as confidential by the disclosing party at the time of disclosure. A party’s Confidential Information shall not include any information which (i) becomes generally publicly available through no wrongful act or omission of the receiving party; (ii) is lawfully acquired by the receiving party from a third party without any breach of a confidentiality obligation; or (iii) is independently developed without use of or reference to the disclosing party’s Confidential Information. Each party agrees to maintain the confidentiality of the other party’s Confidential Information using the same degree of care that it uses with regard to its confidential information of like nature, but in no event less than reasonable care, and to protect as a trade secret any portion of the other party’s Confidential Information by preventing any unauthorized copying, use, distribution, installation or transfer of possession of such information. If required by law, the receiving party may disclose Confidential Information of the disclosing party, but will give adequate prior notice of such disclosure to the disclosing party to permit the disclosing party to intervene and to request protective orders or other confidential treatment therefor. The parties acknowledge that money damages will not be an adequate remedy if this Section 7 is breached and, therefore, either party may, in addition to any other legal or equitable remedies, seek an injunction or other equitable relief against such breach or threatened breach without the necessity of posting any bond or surety.
8. Non-solicitation
During the term of this Agreement, neither party will (on behalf of itself or any other person or entity) solicit any Purchaser or Merchant of the other party to restrict, limit, or terminate such Purchaser’s or Merchant’s participation in the other party’s products and services.
9. Miscellaneous
9.1 Choice of Law. This contract shall be governed by and construed in accordance with the laws of the State of California, without regard to the provisions of the conflict of laws thereof. The parties will resolve any disputes in the state or federal courts located in Santa Clara County, California, to whose exclusive jurisdiction and venue they irrevocably submit. Notwithstanding anything to the contrary, either party may pursue injunctive or other equitable relief in any court of competent jurisdiction.
9.2 Notices. Any notice or other communication required or permitted in this Agreement shall be in writing and shall be deemed to have been duly given on the day of service if served personally or by facsimile transmission with confirmation, or three (3) days after mailing if mailed by First Class mail, registered or certified, postage prepaid, and addressed to the respective parties at the addresses set forth above, or at such other addresses as may be specified by either party pursuant to the terms and provisions of this section.
9.3 Assignment. Customer may not assign or otherwise transfer, without the prior written consent of Yiftee, its rights, duties or obligations under this Agreement to any person or entity, in whole or in part. Yiftee may freely assign or otherwise transfer this Agreement in connection with the sale of all or substantially all of its business or assets. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
9.4 Severability. Any provision of this Agreement that is determined to be unenforceable or unlawful shall not affect the remainder of the Agreement and shall be severable therefrom, and the unenforceable or unlawful provision shall be limited or eliminated to the minimum extent necessary to that this Agreement shall otherwise remain in full force and effect and enforceable.
9.5 Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes any and all prior agreements between them, whether written or oral, with respect to the subject matter hereof, and may not be amended, modified or provision hereof waived, except in a writing signed by the parties hereto. No waiver by either party, whether express or implied, of any provision of this Agreement, or of any breach thereof, shall constitute a continuing waiver of such provision or a breach or waiver of any other provision of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
Customer (Print): YIFTEE, INC.
By: By:
Name, Title: Name, Title: Donna Novitsky, Yiftee CEO
Community Card Customer Agreement
APPENDIX A
Pricing
Customer and Participants are not required to pay Yiftee a subscription fee or a revenue share. Yiftee does not take a percentage of the cards that are redeemed in the Participants’ stores.
Charges:
Purchasers pay the face value of the card plus a $1+5% of the eGift Card value eDelivery fee at the time of purchase. Bulk purchases of one thousand dollars ($1000) or more, and enterprise accounts may qualify for a reduced eDelivery fee by depositing funds into their Yiftee eGifting accounts by check or ACH and disabling credit cards.
Participants pay Mastercard processing fees for a card-not-present (CNP) transaction upon redemption.
Yiftee does not control these fees, they are set by the Merchant Acquirer who is their credit card processor.
Subject to applicable laws, Yiftee will implement a monthly maintenance fee on eGift Cards that have been inactive (i.e. no spending on the Card) for periods of greater than 12 months. This will be made clear to cardholders on the face of the eGift Card when implemented, as is required by law.
Yiftee eGift Cards do not generally expire. Subject to applicable laws, in some cases eGift Cards given by corporations or merchants as promotions, rewards and awards may have expiration dates. In the case of eGift Cards expiring, Yiftee retains 10% of the original eGift Card value not to exceed the remaining unspent funds and refunds the balance to the purchaser’s Yiftee eGift Card account. eDelivery fees are not refunded.
Participants may choose, at their discretion, to post Offers to encourage Purchasers to use their Community Cards in their stores.
Participants may choose, at their discretion, to offer rebates as fund raisers to local groups such as schools, churches and other non-profits. Such programs are an incentive for the local groups to sell Community Cards to their members, and for the Purchasers to use them in specific stores who are offering rebates. Yiftee will work with the Participants and Purchasers to execute such programs.
No tipping is allowed on Yiftee eGift Cards.
From: Barbara Gordon <[email protected]>
Sent: Monday, February 20, 2023 7:08 PM
To: Racquel Vasquez <[email protected]>; George Gastil <[email protected]>; Jennifer Mendoza <[email protected]>; Alysson Snow <[email protected]>; [email protected] <[email protected]>
Subject: Public Comment
Dear City Council Members,
I applaud the State of California for banning flavored nicotine products because they appeal to our youth. I urge this City to also consider the harms of marijuana products infused with THC.
When it comes to THC edibles, the best protections would be to only allow edibles in a nondescript tablet or pill and restrict fun, kid-friendly shapes, flavors, and packaging. We must do more to protect our kids.
Calls to poison control centers increased 1375.0% from 2017 to 2021 due to children under age six eating marijuana edibles, according to an American Academy of Pediatrics article.
The average age was 3 years old.
Symptoms of intoxication can vary and present in different degrees of dizziness, weakness, slurred speech, poor coordination, paranoia and anxiety, or lethargy and sleepiness, and could be hard to identify in a young child.
We must protect kids from today’s marijuana through policy changes and education.
Thank you,
Barbara Gordon
From: Josh Klein
To: Deborah Harrington
Subject: Public comment
Date: Tuesday, February 21, 2023 11:19:13 AM
Comment for tonight. Please confirm it’s received. Thank you.
Council,
Last meeting I submitted a comment about gang graffiti in our city and for some acknowledgment for the incredible amount of work I and others are doing on the issue. I haven’t heard back from council, or city manager and would like to discuss agendizing graffiti abatement again this meeting as it directly relates to our calls for service and violent crime.
Also our contracted outreach is lacking please consider an organization with more accountability as it seems we are part of the homeless industrial complex. Multiple folks stated they haven’t seen Homestart in months. We voted for street safety and would like to see the ball move forward. Thank you all for your service to our city.
Respectfully,
Joshua Klein
--
Joshua Klein SOC Ret.
Lemon Grove 91945
619-884-7579