Revised - AGENDA
City Council
Wednesday, February 21, 2024
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
City Council Member Aleman - Remote
Anaheim Marriott
700 W Convention Way, Anaheim,CA
92802
CALL TO ORDER 6:30 PM
ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member
CLOSED SESSION
§54954.5 Conference with Labor Negotiator
Agency designated representatives: City Manager Sassoon Employee organization: Norco General Employees Association, Utility Workers Union of America, AFL-CIO Local 606, Unrepresented Employees: MidManagement, Confidential, and Management Employees RECONVENE PUBLIC SESSION 7:00 PM
REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
PLEDGE OF ALLEGIANCE Council Member Grundmeyer
INVOCATION Pastor Erin Diaz
New Beginnings Community Church
PRESENTATIONS Black History Month Proclamation
Horseweek Donations
Aaron Hake, Deputy Executive
Director
Riverside County Transportation
Commission
1. CITY COUNCIL REPORTS ON REGIONAL BOARDS
2. PUBLIC COMMENTS
City Council Agenda - February 21, 2024
This is the time when persons wishing to address the presiding governmental body regarding the Consent Calendar, Legislative Matters or items within the subject matter jurisdiction of the legislative body. Please submit a speaker card to the Meeting Clerk. Please limit comments to three minutes or less. The Ralph M. Brown Act limits the governmental body’s ability to respond to comments on non-agendized matters at the time such comments are made. The governmental body shall not discuss or act relative to any general public comment.
3. CONSENT CALENDAR
All items listed under the Consent Calendar are considered to be routine and may be enacted by one motion. There will be no separate action unless members of the governmental body request specific items be removed from the Consent Calendar. Items removed from the Consent Calendar will be separately considered under Item 4 of the Agenda.
3.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.
RECOMMENDATION:
Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.
Staff Report - Pdf
3.B. Approval of City Council Regular Meeting Minutes.
RECOMMENDATION:
Approve the City Council Regular Meeting Minutes of February 7, 2024.
Staff Report - Pdf
3.C. Acceptance of the Valley View Avenue Waterline Replacement Project as Complete
RECOMMENDATION:
Accept the Valley View Avenue Waterline Replacement Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
Staff Report - Pdf
3.D. Acceptance of the Norco MDP Line NA-6 Storm Drain Project as Complete RECOMMENDATION:
Accept the Norco MDP Line NA-6 Storm Drain Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
Staff Report - Pdf
City Council Agenda - February 21, 2024
3.E. Approve Gold Star Families Memorial Brick Program
RECOMMENDATION:
Approve Gold Star Families Memorial Brick Program.
Staff Report - Pdf
3.F. Rejection of bids for 2023-2024 Trail Fencing Installation Project RECOMMENDATION:
It is recommended that the City Council reject all bids for the 2023-24 Trail Fencing Installation Project due to an error in the specifications, and direct staff to rebid the project with corrections made to the specifications.
Staff Report - Pdf
3.G. Acceptance of Proposal for Water, Sewer, and Recycled Water Rate Study Professional Consulting Services
RECOMMENDATION:
Accept the proposal submitted by Stantec Consulting Services Inc. to provide Professional Consulting Services for the preparation of a Water, Sewer, and Reclaimed Water Rate Study in the amount not to exceed $88,655.
Staff Report - Pdf
3.H. Fiscal Year 2023-24 Second Quarter Budget Performance Report with proposed Mid- Year Amendments to the Annual Operating Budget RECOMMENDATION:
Receive and file the FY 2023-24 Second Quarter Budget Performance Report; and approve Resolution 2024-07 appropriating various mid-year amendments to the Fiscal Year 2023-24 annual operating budget and authorizing changes in appropriations and revenues thereto.
Staff Report - Pdf
City Council Agenda - February 21, 2024
3.I. Consideration of Resolution 2024-05 to Accept Donation from the Norco Horseweek Committee
RECOMMENDATION:
Adopt Resolution No. 2024-05 - A Resolution of the City Council of the City of Norco, California, accepting Norco Horseweek Committee's Donation of 3 E-Z-Go Golfcarts and 3 John Deer Gators for use at the Ingalls Event Center.
Staff Report - Pdf
3.J. Approval to Declare Various City Assets as Surplus Property RECOMMENDATION:
Declare various City assets as surplus property and authorize the City Manager/Director of Finance to dispose of surplus assets through auction, donation to charitable organizations, or electronic recycling (e-cycle).
Staff Report - Pdf
3.K. Recap of Actions Taken by the Planning Commission at its Meeting Held on February 14, 2024
RECOMMENDATION:
Receive and file the recap of actions taken by the Planning Commission at its meeting held on February 14, 2024.
Staff Report - Pdf
4. ITEM(S) PULLED FROM CONSENT CALENDAR
5. DISCUSSION / ACTION ITEM(S)
Order of Presentation for Discussion Items:
1. Staff Report Presentation
2. Council Questions of Staff
3. Public Comment
4. Council Discussion and Action
5.A. Solid Waste and Recycling Collection Services Request for Proposal - Update
RECOMMENDATION:
Receive the update regarding the current status of the request for proposals for Solid Waste and Recycling Collection Services Contract; no action at this meeting.
Staff Report - Pdf
City Council Agenda - February 21, 2024
5.B.
New
Riverside Transmission Realiability Project (RTRP) Next Steps - Oral Report
RECOMMENDATION:
Discuss and provide direction on next steps regarding RTRP.
6. CITY COUNCIL / STAFF COMMUNICATIONS
7. ADJOURNMENT
In compliance with the Americans with Disabilities Act, any person who requires a modification or accommodation in order to participate in this meeting is encouraged to contact the City Clerk’s Office at (951) 270-5623 or [email protected] at least 48 hours prior to the meeting so that reasonable arrangements can be made to ensure accessibility. Staff reports are on file in the City Clerk’s Office.
Any writings or documents provided to a majority of the presiding governmental body regarding any item on this agenda will be available for public inspection at the City Clerk’s Office during normal business hours at Norco City Hall, located at 2870 Clark Avenue in Norco. The meeting is recorded.
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.A.
To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Sophia Thompson, Deputy City Clerk
Department: City Clerk
SUBJECT:
Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.
RECOMMENDATION:
Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.
REVIEWED AND APPROVED BY:
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.B.
To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Sophia Thompson, Deputy City Clerk
Department: City Clerk
SUBJECT:
Approval of City Council Regular Meeting Minutes.
RECOMMENDATION:
Approve the City Council Regular Meeting Minutes of February 7, 2024.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
DRAFT - City Council - Feb 07 2024 - Minutes
DRAFT - MINUTES
City Council
Wednesday, February 7, 2024
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 6:00 PM
Mayor Pro Tem Newton Called the meeting to order.
Mayor Bash joined the meeting virtually under AB 2449 "Just Cause".
ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member
CLOSED SESSION
Mayor Pro Tem Newton adjourned to Closed Session at 6:02 pm.
City Attorney Burns read the Closed Session items into the record.
CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: City of Norco, Administrative Civil Liability Complaint R8-2023-0056
CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Silverlakes Sports Park
Agency negotiators: City Manager, Finance Director, Planning Director Negotiating parties: City of Norco and Balboa Management Group LLC.
Under negotiation: Price and Terms
CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Property: APN: 125-180-012
Agency negotiator: City Manager
Under negotiation: Price and Terms
CONFERENCE WITH LABOR NEGOTIATOR
Agency designated representative: City Manager Sassoon
Employee organization: Utility Workers Union of America, AFL-CIO Local 606 RECONVENE PUBLIC SESSION 7:00 PM
City Council Minutes - February 7, 2024
Mayor Pro Tem Newton reconvened the public session at 7:00 PM.
REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
City Attorney Burns stated that there were no reportable actions taken in Closed Sessions.
PLEDGE OF ALLEGIANCE Council Member Katherine Aleman
INVOCATION Chaplain Anderson
Riverside County Sheriffs Office
PRESENTATION Riverside County Sheriffs Office
Recruitment - Lieutenant Jessica Hall
Lieutenant Hall presented the Riverside County Sheriff's Office recruitment video.
1. CITY COUNCIL REPORTS ON REGIONAL BOARDS
The Mayor, Mayor Pro Tem and Council Members provided reports on their recent individual participation in committees, commissions, regional boards, and community organizations.
2. PUBLIC COMMENTS
Bonnie Slager spoke regarding the City Council Election and that the Norco Horsemen's Association will have a Candidates Night on September 19, 2024 at Nellie Weaver Hall. She also extended an invite to the Norco Horsemen's Association monthly meeting on February 15, 2024.
3. CONSENT CALENDAR
a) Approval of Consent Calendar
M/S ALEMAN/HANNA Approve Consent Calendar as presented. The Motion was carried by the following roll call vote:
AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
City Council Minutes - February 7, 2024
ABSTAIN: NONE
3.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.
Action: Waived reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.
3.B. Approval of City Council Regular Meeting Minutes.
Action: Approved the City Council Regular Meeting Minutes of January 17, 2024.
3.C. Consideration of the City's Legislative Platform for 2024 Action: Adopted Resolution No 2024-04, to approve the Legislative Platform 2024 for the City of Norco, and authorized actions in support of the platform.
3.D. Acceptance of Bids and Award Contract for the Citywide Flooring Project Action: Accepted bids and awarded the contract to Lawrence W. Rosine Co. for the Citywide Flooring Project in the amount of $133,866; authorized the City Manager to approve contract change orders up to 10% of the original contract.
3.E. New Observance Request: Leaps Day
Action: Approved the subcommittee's recommendation regarding Leaps Day.
3.F. Acceptance of Bids and Award Contract for the Citywide Facility Painting Project Action: Accepted bids and awarded the contract to Jimenez Painting Company for the Citywide Facility Painting Project in the amount of $127,733; authorized the City Manager to approve contract change orders up to 10% of the original contract.
3.G. Donation of $62,000 to the Norco Animal Shelter from the Family Trust of Roberta Ann Hamersma
Action: Accepted donation of $62,000 to the Norco Animal Shelter by the Family Trust of Roberta Ann Hamersma.
City Council Minutes - February 7, 2024
4. ITEM(S) PULLED FROM CONSENT CALENDAR
No items were pulled from the Consent Calendar.
5. LEGISLATIVE MATTERS
5.A. Zone Code Amendment 2023-06 (City of Norco): Second reading and approval of Ordinance 1108 approving City initiated amendment to Title 18, Chapter 18.02 - "Definitions", to clarify the definitions of Hotels and Motels to include the maximum stay of 30 consecutive days.
M/S ALEMAN/GRUNDMEYER Adopt Ordinance No. 1108, approving Zone Code Amendment 2023-06. The Motion was carried by the following roll call vote:
AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
5.B. Zone Code Amendment 2023-07 (City of Norco): Second reading and approval of Ordinance 1109 approving City initiated amendment to Title 18, Chapter 18.13 – Agricultural Low Density (A-1 Zone) to update to the provisions for large animal-keeping and roosters, clarify the public nuisance and violations for excessive roosters and excessive animal units, and clarify general provisions/development standards including the amendment of the Ostrich Offspring animal units
Mayor Pro Tem Newton opened Public Comment.
Sandra Caprian, Attorney for resident Ray Mena, spoke regarding concerns with Ordinance 1109.
City Manager Sassoon spoke about a letter received from Attorney Hall for Ray Mena and clarified the City's intent of the amended Ordinance and addressed concerns.
Mayor Pro Tem Newton closed Public Comment.
Council Member Hanna asked a clarifying question for speaker, Sandra Caprian.
Sandra Caprian answered his question.
Council Member Aleman had questions and concerns for City Attorney Burns.
City Council Minutes - February 7, 2024
City Attorney Burns answered questions and addressed concerns.
Council Member Aleman had questions and concerns about the Ordinance.
Community Services Director Anglin answered questions and addressed concerns.
Council Member Aleman spoke regarding lot sizes and the correlating animal units.
Council Member Grundmeyer spoke regarding the clarity of the Ordinance and the process to address concerns from residents.
Mayor Bash stated he agrees with Council Member Grundmeyer.
Following discussion, motion was made.
M/S GRUNDMEYER/HANNA Adopt Ordinance No. 1109, approving Zone Code Amendment 2023-07. The Motion was carried by the following roll call vote:
AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
5.C. Newcastle Skye Parkridge, LLC Industrial Project Development Agreement/Site Plan 2020-11, Modification No.1 (Newcastle Skye Parkridge, LLC): Second reading and approval of Ordinance No. 1110 approving a development agreement for the industrial project approved under Site Plan 2020-11, consisting of six buildings that total 80,066 square feet at 1004 Parkridge Ave located within the Industrial District of the Gateway Specific Plan with the amendment of the Project Benefit fees to be paid in full prior to the issuance of any permits.
M/S ALEMAN/HANNA Approve Ordinance No.1110 approving the Newcastle Skye Parkridge, LLC Industrial Project Development Agreement with the amendment of the Project Benefit fees to be paid in full prior to the issuance of any permits.
The Motion was carried by the following roll call vote:
AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
City Council Minutes - February 7, 2024
ABSTAIN: NONE
6. CITY COUNCIL / STAFF COMMUNICATIONS
Council Member Aleman thanked staff for all of their hard work on Ordinance 1109.
Mayor Bash discussed National Disability Independence Day that is celebrated on July 26 and requested the Subcommittee consider adding it to the observances.
Council Member Aleman and Council Member Grundmeyer stated they would look at it as the Subcommittee.
Council Member Hanna spoke regarding the wild pigs that are causing destruction on properties in several neighborhoods in the City and requested a motion to agendize a discussion on a plan of action to control the population.
Council Member Aleman spoke regarding neighboring Cities and their process on handling the wild pigs.
Mayor Pro Tem Newton spoke regarding the danger that the wild pigs are to the community.
Following discussion, motion was made.
M/S HANNA/GRUNDMEYER Agendize discussion on a plan of action to control the population of wild pigs. The Motion was carried by the following roll call vote:
AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Mayor Pro Tem Newton spoke regarding a phone call he received about permits on portable corrals and requested that Resolutions 97-9 and 98-11 be reviewed by a Subcommittee consisting of himself and Council Member Hanna.
City Manager Sassoon agreed a subcommittee would be best to review the resolutions and to bring back the recommendations to Council.
Mayor Pro Tem Newton directed to Public Works Director Blais and Community Development Director Robles, text messages, emails and phone calls
City Council Minutes - February 7, 2024
complimentary of front counter staff of Planning and Building Safety. Mayor Pro Tem Newton requested that they please share the positive information with staff.
7. ADJOURNMENT
Mayor Pro Tem Newton adjourned the meeting at 7:42 p.m. _________________________________
Dana Roa, CMC
City Clerk
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.C.
To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Sam Nelson, Deputy City Engineer
Department: Public Works
SUBJECT:
Acceptance of the Valley View Avenue Waterline Replacement Project as Complete RECOMMENDATION:
Accept the Valley View Avenue Waterline Replacement Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
SUMMARY:
The Valley View Avenue Waterline Replacement Project consisted of the installation of a new 12" water main on Valley View Avenue between Third Street and Third Street.
BACKGROUND:
On June 7, 2023 the City Council awarded a contract to Dominguez General Engineering in the amount of $518,680 and authorized the City Manager to approve contract change orders up to 10% for the Valley View Avenue Waterline Replacement Project. The final contract amount paid to Dominguez General Engineering was $499,680. The decrease in the amount paid was due to the City eliminating the line item requirement to pump concrete slurry into the abandoned 12" waterline as this facility was going to be partially removed as part of the MDP Line N-5 storm drain project.
Dominguez General Engineering has completed all the work required to the satisfaction of the City Engineer and a Notice of Completion has been prepared for recordation.
FISCAL IMPACT:
There is no fiscal impact for this item.
RELATIONSHIP TO STRATEGIC PLAN:
The approval of Notice of Completion is consistent with Strategic Direction #5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.D.
To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:
Acceptance of the Norco MDP Line NA-6 Storm Drain Project as Complete RECOMMENDATION:
Accept the Norco MDP Line NA-6 Storm Drain Project as complete and authorize the City Clerk to file the Notice of Completion with the County of Riverside.
SUMMARY:
The Norco MDP Line NA-6 Storm Drain Project consisted of storm drain and street improvements on Corona Avenue, Temescal Avenue and Fifth Street as well as on private property.
BACKGROUND:
On June 21, 2023 the City Council awarded a contract to H&H General Contractors, Inc. in the amount of $2,120,330 and authorized the City Manager to approve contract change orders up to 10% for the Norco MDP Line NA-6 Storm Drain Project. The final contract amount paid to H&H General Contractors, Inc. was $2,169,093. The increase in the amount paid was primarily due to additional quantities of water service replacements.
H&H General Contractors, Inc. has completed all the work required to the satisfaction of the City Engineer and a Notice of Completion has been prepared for recordation.
FISCAL IMPACT:
There is no fiscal impact for this item.
RELATIONSHIP TO STRATEGIC PLAN:
The approval of Notice of Completion is consistent with Strategic Direction #5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.E.
To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:
Approve Gold Star Families Memorial Brick Program
RECOMMENDATION:
Approve Gold Star Families Memorial Brick Program.
SUMMARY:
On November 20, 2023, the Veterans Commission made the recommendation for the City Council to waive the fees of memorial bricks for Gold Star Families wishing to honor their loved one at the Veterans Memorial Plaza. The Commission's recommendation included waived fees for any choice of brick with no geographical limitation of where the service member lived.
BACKGROUND:
A Gold Star family is one that has experienced a loss of an immediate family member who died as the result of active-duty military service. Those who die in service to their country leave behind parents, siblings, spouses, children, and extended families. The title is meant to honor the service member’s ultimate sacrifice while acknowledging their family’s loss, grief, and continued healing.
Since the inception of the Veterans Memorial Plaza in 2014, there has been approximately $116,000 in brick sales. That money goes to the Veterans Memorial Plaza fund balance and is used to pay for the memorial bricks, engravings on the Lest We Forget Wall, and any other expenses. Below is a summary of the available fund balance for the following donation accounts:
Veterans Memorial Plaza (500.090) - $31,589
Gold Star/Blue Star Mothers (500.150) - $25,262
Veterans Memorial Brick Assistance (500.105) $2,219
Currently, the cost for the engraved memorial bricks range by brick size and option of a service branch medallion:
4"x8" memorial brick - $100
8"x8" memorial brick - $200
8"x8" memorial brick with service branch Medallion - $250 Direct costs for the bricks are approximately 20% of what is listed. The remaining 80% of each brick sale goes to the Veterans Memorial Plaza donation account. The recommendation includes waived fees for all memorial brick options for Gold Star Families.
If approved, the Veterans Commission's Selection Subcommittee will oversee the selection process for the Gold Star Families Memorial Brick Program (Attachment A).
The criteria:
i. Applicant must be a Gold Star Family member
ii. Provide name and documentation of service member
iii. Application form fully completed
The Gold Star Families Memorial Brick Program is subject to available funds in the donation accounts. All applications will be processed by the Facilities & Maintenance Department and provided to the Veterans Commission Selection Subcommittee for review. All decisions by the Department and Veterans Commission concerning the program, eligibility, and funding issues are final.
FISCAL IMPACT:
All program is subject to available funds in the Veterans Memorial Brick Assistance Account (500.105) or in the Gold Star/Blue Star Mothers Account (500.150).
RELATIONSHIP TO STRATEGIC PLAN:
The waived fees for Gold Star Families closely aligns with Strategic Direction No. 4, Communication and Stakeholder Experience: Enhance the stakeholder experience, engage the community, and build brand awareness through proactive, effective and consistent communication.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Attachment A Gold Star Families Memorial Brick Program
` ATTACHMENT A
City of Norco
George Ingalls Veterans Memorial
Gold Star Families Memorial Brick Program
Through generous donations, the City of Norco is able to offer engraved memorial bricks to Gold Star Families wishing to honor their loved one. A Gold Star Family member is one that has experienced a loss of an immediate family member who died as the result of active-duty military service. The engraved memorial brick will be placed in the Circle of Honor free of charge. Service members from across the United States are welcomed in the Circle of Honor.
SELECTION PROCESS
The Veterans Commission Selection Subcommittee will review the application to make sure the criterion for the program is achieved.
The criteria:
i. Applicant must be a Gold Star Family member
ii. Provide name and documentation of service member
iii. Application form fully completed
All assistance is subject to available funds.
Applications must be submitted to City of Norco Facilities & Maintenance Department, 2870 Clark Avenue, Norco, California 92860.
All decisions by the City of Norco concerning the program, eligibility, and funding issues are final.
For more information, please call (951) 270-5633.
Date:___________________
Brick Choice :_________________ □ 4x8
□ 8x8
□ 8x8 with service branch medallion
Applicant Name: _________________________
Address: _____________________________________City____________ Zip Code__________ Name of Service Member: ___________________________________________________________ Home Phone: ____________________________ Work Phone: ____________________________ Email: ___________________________________________________ Please submit this application to the City of Norco Facilities & Maintenance Department at 2870 Clark Avenue, Norco, California 92860.
All decisions by the City of Norco concerning the program, eligibility, and funding issues are final. ________________________________________________ ______________________ Signature Date
FOR OFFICE USE ONLY:
Approved □ Yes □ No
Date Approved: ____________
CITY OF NORCO Signature: _________________
Gold Star Families Memorial
Brick Program Application
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.F.
To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:
Rejection of bids for 2023-2024 Trail Fencing Installation Project RECOMMENDATION:
It is recommended that the City Council reject all bids for the 2023-24 Trail Fencing Installation Project due to an error in the specifications, and direct staff to rebid the project with corrections made to the specifications.
SUMMARY:
The City advertised its annual request for bids for the Trail Fencing Installation Project for fiscal year 2023-24 and received five bids in response. Although the bids tabulations are correct on who submitted the lowest overall bid, there is a potential conflict within the specification language on how the award of contract shall be implemented. Since the bids included an add alternate, a question was raised by the second low bidder as to whether the contract will be awarded to the lowest base bid or will it be awarded based on the based bid and add alternate together. The specification language is not completely clear, and therefore a recommendation has been presented to City Council to reject all bids and direct staff to rebid the project with corrections.
BACKGROUND:
The City advertised the Fiscal Year 2023-24 Trail Fencing Installation Project on January 6, 2024 and received five (5) bids in response on February 7, 2024 that ranged from $441,731 to $1,029,455. The bid sheets included just one line item for installation of the new white vinyl trail fencing as the base bid and then one line item for a bid alternate for removal of the old wooden trail fencing.
The initial low bidder was Ferreira Construction Co. with a base bid of $367,665 and bid add alternate of $74,065.80 for a total combine bid of $441,731. However, after bids were received, the second low bidder, Valley Cities Gonzales Fencing, with a bid of $463,410, contacted the City regarding a potential error in the specifications on how the
bid would be awarded. Under "Awarding of Contract" in the specifications it reads "The award of the contract, if made, will be based on the contractor bids received and will be compared based upon the lowest responsible Bidder’s Base Bid only as determined solely by the AGENCY. The construction contract if awarded will, at the discretion of the City Council, include Base Bids, and may include Additive Alternates as funds are available."
The intent of the RFP, as in past awards for trail fencing projects, was to award a contract to the lowest responsive bidder for both the base bid and the bid alternate. The issue at hand is Valley Cities submitted a lower base bid in the amount of $361,950 than Ferrera and Valley Cities believes the specifications appear to show they should be awarded the contract based on the base bid only. However, the intended goal of the bid was to award the contract to the entity that provided the lowest total bid (Base plus alternate) which in this case was Ferrera.
Although the Council could move forward with awarding a contract to the overall low bidder (base bid and add alternate), due to the conflicting language, staff is recommending the City Council reject all bids and direct staff to rebid the project with corrections made to the specifications on how the contract shall be awarded.
FISCAL IMPACT:
There is no fiscal impact to rejecting the bids and rebidding the trail fencing project.
RELATIONSHIP TO STRATEGIC PLAN:
Rejection of the bids for the trail fencing replacement project is consistent with Strategic Direction #5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Bid Results - FY 2023-24 Equestrian Trail Fencing
City of Norco
Bid Results for Project 2023-24 Equestrian Trail Fencing Project (54600.7) Issued on 01/09/2024
Bid Due on February 07, 2024 12:00 PM (PST)
Exported on 02/07/2024
Line Totals (Unit Price * Quantity)
Item Item Code Description Unit Qty Unit Price Line Total Unit Price Line Total 1 Base Bid
Install 42” High White PVC (Vinyl) Equestrian
Trail Fencing per City Standards per the matrix
included in these specifications including
mobilization and traffic control at
________________ Per Linear Foot LF 19,050 $19.30 $367,665.00 $19.00 $361,950.00 Subtotal $367,665.00 $361,950.00
2 Add Alternate
Remove Equestrian Trail Fencing, haul and
disposal per Exhibit A, including mobilization
and traffic control at ___________ Per Linear
Foot LF 16,910 $4.38 $74,065.80 $6.00 $101,460.00
Subtotal $74,065.80 $101,460.00
Total $441,730.80 $463,410.00
Ferreira Construction Co,
Inc.
DBA Ferreira Coastal
Construction
Valley Cities Gonzales
Fence Inc.
City of Norco
Bid Results for Project 2023-24 Equestrian Trail Fencing Project (54600.7) Issued on 01/09/2024
Bid Due on February 07, 2024 12:00 PM (PST)
Exported on 02/07/2024
Line Totals (Unit Price * Quantity)
Item Item Code Description
1 Base Bid
Install 42” High White PVC (Vinyl) Equestrian
Trail Fencing per City Standards per the matrix
included in these specifications including
mobilization and traffic control at
________________ Per Linear Foot
2 Add Alternate
Remove Equestrian Trail Fencing, haul and
disposal per Exhibit A, including mobilization
and traffic control at ___________ Per Linear
Foot
Unit Price Line Total Unit Price Line Total Unit Price Line Total $20.40 $388,620.00 $23.00 $438,150.00 $25.98 $494,919.00 $388,620.00 $438,150.00 $494,919.00
$6.50 $109,915.00 $9.40 $158,954.00 $11.86 $200,552.60
$109,915.00 $158,954.00 $200,552.60
$498,535.00 $597,104.00 $695,471.60
Everfence Fence Corp Red Hawk Services, Inc.
City of Norco
Bid Results for Project 2023-24 Equestrian Trail Fencing Project (54600.7) Issued on 01/09/2024
Bid Due on February 07, 2024 12:00 PM (PST)
Exported on 02/07/2024
Line Totals (Unit Price * Quantity)
Item Item Code Description
1 Base Bid
Install 42” High White PVC (Vinyl) Equestrian
Trail Fencing per City Standards per the matrix
included in these specifications including
mobilization and traffic control at
________________ Per Linear Foot
2 Add Alternate
Remove Equestrian Trail Fencing, haul and
disposal per Exhibit A, including mobilization
and traffic control at ___________ Per Linear
Foot
Unit Price Line Total
Unit
Price Line Total
$37.20 $708,660.00 $42.50 $809,625.00
$708,660.00 $809,625.00
$5.39 $91,144.90 $13.00 $219,830.00
$91,144.90 $219,830.00
$799,804.90 $1,029,455.00
Izurieta Fence
Company, Inc.
J & A Engineering
Corp.
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.G.
To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:
Acceptance of Proposal for Water, Sewer, and Recycled Water Rate Study Professional Consulting Services
RECOMMENDATION:
Accept the proposal submitted by Stantec Consulting Services Inc. to provide Professional Consulting Services for the preparation of a Water, Sewer, and Reclaimed Water Rate Study in the amount not to exceed $88,655.
SUMMARY:
The City's last water and sewer rate study was completed in 2016. Staff is seeking professional consulting services to conduct a Water, Sewer and Reclaimed Water Rate Study and requested a proposal from Stantec to provide these rate analysis services. It is recommended that the City Council accept the proposal and approve a contract with Stantec Consulting Services Inc. in the amount not to exceed $88,655.
BACKGROUND:
The most recent rate study for water and sewer services was conducted in late 2016, which was followed by 5 years of gradual rate increases for water users to help correct a structural budget deficit in the Water Fund and to begin funding critical water capital improvement projects. The last water rate increase was implemented in July 2021; no sewer increases were implemented, although recommended in the study, due to an already stable sewer fund balance.
It is fiscally prudent and a best practice for the City continue to evaluate its revenue versus expenditures and adjust rates on a regular basis to make sure there is appropriate funding being generated to cover increasing costs for operations/maintenance and for critical capital improvement projects. The periodic completion of a rate study provides baseline data and forecasting for the City Council to make rate-setting decisions in the future.
At the August 16, 2023 Council meeting, Council was asked to consider approving a professional consulting services agreement with Stantec Consulting Services Inc. (Stantec) to complete a 5-year rate analysis study for water, sewer, and recycled water.
After some discussion, Council elected to not move forward at that time and directed staff to bring the item back for reconsideration as part of a mid-year item.
The City's water system has a significant list of capital infrastructure still in need of funding in order to construct critical water mainline replacements and other infrastructure improvements. The water system is simply not generating sufficient revenue to complete the current 5-year list of capital projects. The completion of the rate study will allow for the projection of capital needs and potential revenues, and a comprehensive plan for addressing the ongoing maintenance of the water system while balancing the need to moderate rate adjustments.
The City has also entered a partnership with the members of the Western Riverside County Regional Wastewater Authority (WRCRWA) to design, construct and maintain a regional recycled water pump station that would provide recycled water to Norco and the other members of WRCRWA. The City does not currently have a rate structure for recycled water and would need to conduct a formal detailed rate study to document and determine the service rates required for recycled water to fund the reasonable costs necessary to construct and operate a recycled water system.
Since the original proposal was deferred to a later date, Stantec has updated its proposal for Rate Analysis of Water, Wastewater and Reclaimed Water Enterprises with a cost of $88,655 (see Stantec proposal). Staff has reviewed the proposal to ensure completeness of the proposal and format; quality of work previously performed; understanding of the scope of work; experience of project team; references; availability of resources to perform work; proposed work schedule; and cost of services. In addition, David Hyder, Senior Principal & Project Director, will once again be leading the Stantec team and personally presenting rate study results and recommendations at all the outreach meetings that will be conducted as part of the rate analysis process.
Based on their current workload and availability, Stantec would not be able to begin the work on the study until July 2024 and a draft of the study's initial findings would be presented to Council sometime in November or December 2024, and at that time the Council can then consider next steps.
Staff is recommending the City Council accept the proposal and approve a contract with Stantec Consulting Services Inc. to provide Professional Consulting Services to complete a rate analysis for water, sewer, and reclaimed water; and authorize the City Manager to approve a purchase order in an amount not-to-exceed $88,655.
FISCAL IMPACT:
The preparation of the water, sewer, and reclaimed water rate analysis was included in the operations budget for FY 2023-24 ($30,000 from Water Operating Fund - 124-804- 34100; $30,000 from Sewer Operating Fund - 126-809-34100; $30,000 from Recycled Water Fund 159-965-34100).
RELATIONSHIP TO STRATEGIC PLAN:
Completion of rate analysis for water, sewer, and reclaimed water is consistent with Strategic Direction #5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
stantec_rate_study_proposal_norco_FY25
City of Norco
Proposal for
Rate Analysis of Water,
Wastewater and Reclaimed Water
Enterprises
Prepared by Stantec
January 31, 2024
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
i
TABLE OF CONTENTS
Table of Contents ........................................................................................................................................... i Cover Letter .................................................................................................................................................. ii
1. Understanding of Scope of Services ......................................................................................................... 1
2. Methodology .............................................................................................................................................. 2 Work Element I: Water & Wastewater Enterprise Funds .......................................................................... 2 Task 1: Revenue Sufficiency Analysis and Financial Planning Analysis .............................................. 2 Task 2: Cost of Service Allocation Analysis .......................................................................................... 3 Task 3: Rate Design .............................................................................................................................. 3 Work Element II: Reclaimed Water Enterprise Fund ................................................................................ 3 Task 4: Reclaimed Water Cost Determination ...................................................................................... 4 Task 5: Estimate of Potential Demand and Usage ............................................................................... 4 Task 6: Cost of Service Allocation Analysis .......................................................................................... 4 Task 7: Level of Cost Recovery and Rate Design ................................................................................ 4 Work Element III: Deliverables .................................................................................................................. 4 Task 8: Rate and Bill Comparisons ....................................................................................................... 4 Task 9: Reports and Presentations ....................................................................................................... 5
3. Qualifications ............................................................................................................................................. 6
4. Personnel .................................................................................................................................................. 8
5. Experience .............................................................................................................................................. 10
6. References .............................................................................................................................................. 12
7. Schedule ................................................................................................................................................. 16
8. Signature ................................................................................................................................................. 17
9. Estimate of Consulting Fee ..................................................................................................................... 18 Appendix A: Resumes ................................................................................................................................. 22 Appendix B: Data Request List ................................................................................................................... 32
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
ii
COVER LETTER
January 31, 2024
City of Norco
Chad Blais, Public Works Director
2870 Clark Avenue
Norco, CA 92860
Re: Request for Proposal – Rate Analysis of Water, Wastewater & Reclaimed Water Enterprises Dear Mr. Blais:
We are pleased to present this proposal to provide Water, Wastewater and Reclaimed Water Rate Analysis services to the City of Norco, California (City). Stantec Consulting Services Inc. provides expertise in utility rate setting and a full suite of consulting services for over 500 water clients in the United States. Stantec has over 30 staff members that specialize in providing financial forecasting, rate making, and cost of service allocations for retail and wholesale utility customers, as well as providing affordability, stakeholder engagement, and benchmarking services.
Industry Leader & Authority. The senior members of our firm have been recognized as industry experts in various state and federal utility ratemaking proceedings. They have testified on multiple occasions before utility regulatory agencies in states such as Florida, Michigan, and Arizona, and at a national level before the Federal Energy Regulatory Committee (FERC). In addition, they have experience serving as expert witnesses in litigation when the rates of our municipal clients have been challenged by various types of customers such as other municipalities, retail customer groups, and privately owned utility systems. Our proposed project team has over 70 years of combined experience and has supported the issuance of approximately $2 billion of debt for our clients’ utility capital funding needs over just the past five years.
The senior members of our project team, including Mr. David Hyder who will serve as Project Director, and Mr. Andrew Burnham who will serve as the Technical Advisor are currently serving on the AWWA Rates and Charges Committee, and are actively involved in an update to AWWA Manual M1 – Principles of Water Rates, Fees and Charges. In addition, they are actively involved in the Water Environment Federation (WEF) and the WEF Management Committee. This experience allows us to bring industry best practices to our approach to financial forecasting, management, cost of service, and rate making.
Local Knowledge & Relevant Experience. Our project team has extensive experience in providing financial planning, cost of service, and rate design services to water and wastewater utilities, culminating in the completion of over 1,500 similar studies throughout the country. Our Project Director, David Hyder, has conducted several utility rate studies in California including studies for the Cities of Norco, Santa Ana, Whittier, the East Bay Municipal Utility District, and the Jurupa Community Services District. Our project
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
iii
team consists of a team of national experts including resources from California offices, who can bring you the depth of Stantec’s rate-setting expertise. You can expect a fully compliant rate study from us.
Interactive Approach & Modeling Process. To conduct the study, we will use our interactive financial model, which will be available to the City at the conclusion of the study at no additional cost. It is robust, easy to use and understand, and was built and developed in MS Excel to be easily customizable to properly reflect the unique dynamics of our clients’ utility systems. Our financial model is specifically designed to ensure the flexibility to be able to perform extensive sensitivity/scenario analysis with realtime feedback of the results. The control panel of our financial model display results on an easy-tounderstand dashboard that is customized for each client to highlight key assumptions or alternative scenarios.
Schedule. Based on current staffing commitments, Stantec will be able to commence work on the study beginning in July of this year with a completion by the end of December.
Contact. Mr. David Hyder will serve as the project director and main point of contact. He is located at 1101 14th Street NW Suite 1200 Washington DC 20005 and is available by phone at (443) 538-1175, or email at [email protected].
If you have any questions, please do not hesitate to contact me.
Very truly yours,
Senior Principal & Project Director
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
1 1. UNDERSTANDING OF SCOPE OF SERVICES
Effective utility management in areas where water resources are limited requires the careful integration of cost allocation and pricing strategies into overall conservation and water supply plans. A careful and thorough analysis of the various types of costs of service must be combined with the proper rate design and communication strategies to ensure a fair and equitable rate structure that sends the correct pricing signals and can be understood by customers. Utility managers in this circumstance face large and complex risks that are unknown to areas where water supply is plentiful. In major water-challenged cities from California, to Colorado, Arizona, and Texas, our consultants have dealt with similar issues that currently confront the City of Norco.
It is our understanding that the City is seeking a qualified professional consulting firm such as Stantec, to assist the City in analyzing its current rate structure for water and sewer services and to evaluate other potential rate structures that would provide increased revenue stability and that are equitable and defendable. In addition, Stantec will help the City establish a rate structure for its new reclaimed water system. For each fund, we will evaluate the revenue requirements, including capital, operations and maintenance expenditures, bond debt coverage and reserves for both capital and operations. We will perform a cost allocation analysis to ensure that the rate plans are equitable to all customer classes including residential, commercial, and non-connect customers in addition to ensuring that the rates recommended during the study are in compliance with Proposition 218.
Our approach to completing a utility rate study is focused on an interactive decision support process.
While our team will facilitate all aspects of the study, provide industry expertise and specific recommendations, we believe that input from the City is essential to the process. It is vital for the study to reflect the unique nature and specific needs of the City. Our interactive process effectively facilitates this input in an efficient manner while providing transparency and ultimately a comprehensive look at our clients’ utility systems. We will use our industry-leading financial model to facilitate the process.
To properly calibrate the modules of our financial model to precisely simulate the City’s utility systems, we will gather and review a significant amount of information, including historical and projected operating and capital budgets, audited financial statements, facility plans, bond/loan agreements, service agreements, historical, current, and expected usage data.
We will then conduct multiple interactive decision support work sessions with City Staff with the financial model and running with the “control panel.” The interactive process allows us to work closely with our clients to conduct a transparent analysis and to identify and understand the drivers and impacts of any decision alternative clearly and quickly. We can evaluate alternative assumptions and scenarios “on-the-fly” as the discussion progresses. This allows us to work towards solutions with an understanding of the short and long-term consequences of each scenario to the utility and its customers.
Based upon the City’s desired scope of services, we use the following sections to describe how we will use the financial model to accomplish the City’s desired tasks, and how we provide a complete evaluation of all aspects of your utility systems.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
2 2. METHODOLOGY
To initialize the study, we will meet with City staff to discuss key issues, data requirements, and the overall project schedule, which will identify key milestones for deliverables, including draft and final reports. The kickoff meeting is the first of several project management meetings during the course of the project. Subsequent project management meetings will address project issues including execution of the scope, review and acceptance of deliverables, budget and time performance, and internal coordination issues necessary for the timely completion of the project. Once data has been received, we will review all data in detail, including regulatory requirements, historical and future operating expenses, debt service, reserve policies, billing procedures, existing rate structures, customer characteristics, system and capital improvement information, and other data provided by City staff.
We have divided our work plan into three work elements: Water & Wastewater Enterprise Fund Analysis, Reclaimed Water Enterprise Fund Analysis, and Deliverables. Please note that tasks within each element may be conducted concurrently, contingent on the receipt of data as well as the final project schedule.
Work Element I: Water & Wastewater Enterprise Funds
Task 1: Revenue Sufficiency Analysis and Financial Planning Analysis We will use the financial model to develop multi-year financial management plan for the water, wastewater and reclaimed water enterprise funds, including projected annual revenue requirements and rate adjustments. This model allows examination of historical operating expenses, growth and consumption trends, alternative capital improvement spending levels, debt service coverage ratios, levels of operating and capital reserves, and other financial policies/goals that affect the revenue requirements of the funds.
In addition to evaluating financial goals and objectives, we will also evaluate alternative demand projections, cost escalation factors, changes in usage patterns, elasticity of customer demand in response to rate increases, and other variables that could affect the financial performance of the City.
One item of particular importance is the projection of volumetric sales. Water use patterns are influenced by price signals and change in customer behavior can also be affected by other non-price factors, such as rainfall, conservation programs, and economic conditions. We will analyze probable ranges of demand changes in response to different degrees of rate increases, weather patterns, rate structure changes, etc.
Prudent planning requires that utilities prepare for reductions and changes in demand patterns, and such planning will be incorporated to achieve financial targets and fund balances as described below.
The financial model provides a valuable capital planning tool which we will use to review the City’s capital improvement program, and to evaluate the impacts of alternative projects, costs, timing, and funding sources. Our capital planning tool allows us to evaluate the current and recommended investments for improvements as well renewal and replacement of utility systems and the financial impacts to the rate payers. For all scenarios reviewed, the financial model will develop a funding plan, including the identification of the amount, timing, and type of borrowing required as may be necessary. We will examine each enterprise fund’s use of debt financing for capital improvements and assess the impact of current levels of debt financing, as well as building a financing scenario to support the City in maintaining a proper balance for debt coverage and rate stabilization over the study period.
Closely related to this analysis is an examination of adequacy of reserves for operating and capital projects. Adequate reserves are fundamental to achieving financial stability and can help some systems to avoid sudden or disruptive rate adjustments in the face of unanticipated operating or capital
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
3 needs. We will examine the City’s fund balances and incorporate these balances and alternative reserve policies into the interactive planning process and the conversations we will have regarding financial sustainability.
Task 2: Cost of Service Allocation Analysis
The cost allocation analysis will allow for the total cost of service and revenue requirements for the water and wastewater systems to be functionalized and distributed to customer classes. Each utility system’s cost of service and revenue requirements are functionalized to defined segments, which are then allocated to each class of customer based upon the characteristics or units of service of each respective class of customer. An example of typical functions and customer classes for a water system is presented in the following charts. Please note that system functions and customer classes are unique to each community and would be determined for the City based upon a review of its system/user data.
We identify the most appropriate Prop 218-compliant cost-of-service allocation methodologies and rate structures based upon available data, legal requirements, system configuration, service agreements, resources, customer base, demand and usage characteristics, local practice, and public policy objectives. We then customize the cost allocation module to employ the identified methodologies and concepts best suited for each utility system. At this time, we can also evaluate the various customer classes and recommend any changes, which may include adding a customer class or combining existing customer classes, based upon the results of the cost allocation analysis.
At the conclusion of the cost allocation portion of the analysis, we compare the resulting allocation of revenue requirements to the revenue generated by the current rates for each customer class. To the extent current revenue recovery levels are not in line with the results of the cost-of-service allocation analysis, we evaluate alternative levels of revenue recovery by class of customer within the rate structure analysis that would better comport with the identified cost of service allocations.
Task 3: Rate Design
At this point, we will also perform an independent review of the current rate structures for each customer class and examine alternative rate structures using our rate design model. The rate structure will be evaluated to determine if they may better serve the City’s fiscal stability and/or public policy objectives relating to fixed cost recovery, economic development, conservation, and affordability, while ensuring a fair and equitable distribution of costs, and conformance to accepted industry practice, legal precedent, and terms of any service agreements. Similarly, we can also evaluate the distribution of costs between the fixed and variable components of the rate structure and will make recommendations that are consistent with your cost recovery objectives and consider your reserve policies as well as revenue stability and affordability objectives.
The revenue requirements determined in the revenue sufficiency and financial planning module for the first projected fiscal year are linked to the cost allocation and rate design model, which calculates specific rates necessary for each customer class to generate the required revenues based upon proper allocation of costs and the specified rate structure, or rate structure alternatives.
Work Element II: Reclaimed Water Enterprise Fund
The City of Norco does not currently sell reclaimed water to customers located within the City. While a recycled water system has been constructed, recycled water from the Western Riverside County Regional Water Cost of Service → Source of Supply → Treatment → Transmission → Pumping → Metering → Billing & Collection → Residential → General Service → Residential Irrigation → General Irrigation → University → Wholesale Customer Classes Cost Functions
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
4 Wastewater Treatment Plant (WRCRWTP) has not been approved by the state for reclaimed water. The City currently supplies non-potable water through the reclaimed water system to City parks and parkways.
Our project team has assisted several communities with the establishment of reclaimed water rates during the startup phase of the utility. The specific tasks identified below recognize the startup nature of the reclaimed water system.
Task 4: Reclaimed Water Cost Determination
Our project team will work with the City to identify the current and future costs associated with providing reclaimed water service. The cost determination will include estimates of costs associated with treatment, pumping, storage, and transmission of reclaimed water. The costs will be loaded into our revenue sufficiency and financial planning module to develop multi-year financial management plan for the reclaimed water enterprise fund, including projected annual revenue requirements.
Task 5: Estimate of Potential Demand and Usage
In order to evaluate reclaimed water rates for the City it will be necessary to develop an estimate of the potential demand for reclaimed water service within the City. Our project team will work with the City to identify the potential demands by various classes of customers within the City (typically retail and bulk/wholesale). Based on our experience, it is fairly common for a new reclaimed system to initially serve bulk customers for a period of time prior to transitioning to serving retail customers given the additional infrastructure that is often required to provide retail service.
Task 6: Cost of Service Allocation Analysis
The annual revenue requirements identified in Task 4 will be functionalized and distributed to the potential customer classes identified in Task 5. The cost allocation process will be based on the costs associated with serving the potential customer classes. For example, bulk customers would be allocated treatment and transmission costs, but storage and pumping costs may be excluded if bulk customer have onsite storage facilities. Additionally, the task will identify the fixed and variable cost components related to providing reclaimed water service.
Task 7: Level of Cost Recovery and Rate Design
When the revenue requirements have been identified, and the cost allocation has been complete, we will develop reclaimed water rates. The key considerations for the development of the reclaimed water rates will include:
The level of reclaimed water service cost recovery (it is common for a reclaimed water system to not fully recover the cost of providing reclaimed service) The potential structure of fixed fee for reclaimed service The development of the variable rate structure
Our project team will work with the City Staff to evaluate the level of cost recovery and to evaluate the various rate structure options. Based on the evaluation of the various options, recommended reclaimed water rates will be developed.
Work Element III: Deliverables
Task 8: Rate and Bill Comparisons
We will provide a comparison of water, sewer and reclaimed water rates and sample customer bills for comparable and surrounding utilities.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
5 Task 9: Reports and Presentations
At the conclusion of the study, we will prepare written reports of the analysis that will detail the analysis, conclusions, and recommendations of the study. We will first prepare a draft report, provide to City staff for comment, and then incorporate any edits into a final report. Additionally, we will present the results at three meetings including one public workshop with Streets, Trails, and Utilities Committee, one public workshop with City Council, and a final public hearing to adopt the new rates. The presentations are critical not just to comply with Prop 218 noticing requirements, but also to generate acceptance of the study recommendations. Additional presentations can be provided, as requested.
It is important to note that we do require the City to sign a usage and non-disclosure agreement in order to protect the propriety nature of our financial model and to allow for our review of the model to ensure its accuracy for the City’s protection. Within the agreement, we also typically identify the parameters for any future module maintenance assistance, updates, and support services the City may desire to ensure its future beneficial use of the modules. Upon request, we can provide a sample agreement used with another of our clients.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
6 3. QUALIFICATIONS
The Stantec community unites more than 22,000 employees working in over 400 locations across the globe. Our local strength, knowledge, and relationships, coupled with our world-class expertise, have allowed us to go anywhere to meet our clients’ needs in more creative and personalized ways. With longterm commitment to the people and places we serve, Stantec has the unique ability to connect to projects on a personal level and advance the quality of life in communities across the globe.
Stantec Inc. is a publicly traded entity listed on the New York Stock Exchange (Symbol: STN) and the Toronto Stock Exchange (Symbol: STN). We are required to be financially stable in order to maintain these listings and we are required to adhere to the Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission “(2013 framework)” (the COSO criteria). We are subject to ongoing independent audits that prove our financial stability and credit worthiness.
Our Financial Services Practice offers
35+ consultants with over 400 years
of combined experience and value to
your project. As a group, we work
together and learn from each other’s
experiences. This combination of
diverse backgrounds and experiences
has made us who we are today – a
trusted source to our clients in
providing independent and
objective financial management
services to local governments and
utilities throughout the country.
This knowledge sharing and expertise
will be brought to you as well. You can
be assured that our team will develop
comprehensive and balanced
solutions tailored for your situation.
As a multi-disciplinary firm, Stantec
has the unique depth of resources
and diversity of subject matter
expertise to ensure that any
unanticipated needs can be met
during the study.
FINANCIAL SERVICES OFFERINGS
Rate Studies
Water/Sewer/Reclaimed
Solid Waste & Recycling
Stormwater
Electric / Gas
Cost-of-Service Analysis
Wholesale/Outside-City rates
Interlocal Agreements
Regionalization Studies
Customer Class Allocations
Financial Planning & Capital Funding
Policies, Targets & KPI’s
Bond Feasibility Studies
Demand Forecasting
Project Funding Strategies
System Development Fees/Capacity Fees
Utilities & Other Services
Expert Witness Services
Fee/Charge Structure
Development Policies
Benchmarking
Database of 500+ Entities
Audited Financials & Rates
Audited financial statements
Custom Group Comparisons
Affordability
Actual Bills & Incomes
Multiple Metrics & Thresholds
Regulatory Support
Assistance Programs
Strategy & Management
IT Planning & Implementation
Strategic Plans
Business Process Mapping
Assessment Management
O&M and CIP Optimization
Performance Measures
Level of Service Development
Real Estate Advisory Services
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
7 Stantec is uniquely qualified to perform the requested services because of the long history of experience in financial services focused on utilities and local government. Our team has helped nearly 350 communities – including over 30 in California. It may be useful to note that while we are a dedicated financial services practice, we are part of a larger water group in Stantec that supports the operations and design of water, wastewater, and stormwater utilities. We have a global engineering firm as a resource for any technical support needed during the study.
We currently have hundreds of contracts with California local government clients.
We are proposing an integrated and well-rounded project team of financial consultants. Our financial consulting team includes experts in the field of water and sewer rate design, cost of service, and the requirements for implementing rates in accordance with California law, namely Propositions 218 and 26. Our experienced staff have depth and breadth of knowledge, backgrounds working with utilities to develop financial plans, and design rates and fees as requested by the District. Stantec’s team of financial and management consultants are recognized industry experts having contributed to all major publications and reference materials. We have also conducted rate training classes for AWWA, WEF, Michigan State University, the Carl Vinson Institute of Government, and private professional training organizations.
Our senior team members are contributing authors to the leading industry publications on water and wastewater rates, and routinely give presentations and teach classes on water resources utility ratemaking across the country. The leaders in Stantec’s Financial Services team are widely recognized as experts in the municipal rate consulting industry, and have:
Contributed to AWWA’s primary water rate manual M-1
Contributed to WEF’s wastewater rate Manual of Practice No. 27 Contributed to AWWA’s alternative rate manual M-54
Contributed to AWWA’s capital financing manual M-29
Contributed to AWWA’s cash reserve policy report
Conducted training for Michigan State University’s Ratemaking Class
Served as chair to AWWA’s Rates and Charges Committee Provided testimony and expert witness services
We have structured our project team with members who are particularly strong in the following areas:
Multi-Year Financial Management Plans. Our financial planning platform was designed for systems of similar size operated by local government agencies, and include capital planning, operations, and maintenance expense budgeting, grant and debt financing, and financial management targets and reserve policies.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
8 Cost-Based Rates. We develop rates that reflect clear allocations of cost to customers based on valid criteria and usage characteristics. Our approach yields fair and equitable rates by customer class that meet the proportionality requirements of Proposition 218. Robust and Defensible Rate Design. Stantec leads the industry in rate structure concepts that address specific local policy objectives including conservation, affordability, and revenue stability, while conforming to accepted industry practice and legal precedent. Reserve Policy. Our team members work closely with utilities across the country to craft reserve policies that provide resilience from financial shock due to unexpected infrastructure failure, natural disaster, drought, and changes in the local economy.
Communication. We pride ourselves on clear, concise communication with and on behalf of our clients. Public support for rate changes depends on if the public perceives the rates as fair. This perception depends on, among other things, the clarity of our presentations and discussions at public meetings.
We have selected a team of committed and highly experienced firm personnel for this project. We have team members who will dedicate a significant portion of their time to independent quality assurance and quality control (QA/QC) reviews, in order to provide internal auditing of the work products we prepare for the City.
4. PERSONNEL
We have carefully selected our proposed project team with members that are experienced in each service requested by the City. Summary biographies of our project team are provided below, with full resumes provided in Appendix A.
David Hyder
Project Director
David has over 20 years of professional experience,
and he specializes in assisting public sector clients
with the financial and managerial aspects of
environmental infrastructure. David brings
experience applying engineering, environmental and
financial expertise to a broad range of projects for
clients. He is currently serving on the AWWA Rates
and Charges Committee, and is actively involved in
an update to AWWA Manual M1 – Principles of
Water Rates, Fees and Charges.
Specialist Skills
Innovative Rate/Fee Design
Design of Financial
Management and Rate
Programs
Development of Assessment
Program Methodologies
Rate Regulation Assistance
Kevan Cook
Project Manager
Kevan is a Consultant with eight years of
experience. He has developed several types of
financial models has also gained strong financial,
business and analytical skills that he applies to
support the services provided by Stantec. He has
worked in multiple states for clients ranging in size
from 200 to 500,000 accounts.
Specialist Skills
Long-Term Financial Plan
Development
Cost of Service Rate Studies
Customer, Demand, and
Revenue Forecasts
Stakeholder
Outreach/Education
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
9 Andrew Burnham
Technical Advisor
Andy is a leader in our industry and has provided
exemplary professional consulting services to our
clients for many years. Andy has extensive
experience in utility financial planning, cost
allocation, and rate development, during which he
has been recognized as an industry expert as part
of utility rate-related regulatory proceedings in
multiple states and territories. He has personally
conducted/managed over 500 similar studies for
local governments.
Specialist Skills
Long-Term Financial Plan
Development
Cost of Service Analysis
Stakeholder Communication
Bond Feasibility Reports &
State Loans
Assistance with the
Preparation of Ordinances
Ben Stewart
QA/QC Advisor
Ben is a California-based management consultant
who bridges the disciplines of financial analysis, rate setting and strategic planning. He has performed
dozens of water, wastewater, and recycled water
rate studies in California and is a published author
and expert in Proposition 218 and all of California’s
legal requirements regarding utility rates.
Specialist Skills
Expert in Prop 218
Cost-of-Service Studies
Rate Design
Dancia Katz
Project Consultant
Danica is a Consultant with six years of experience
in populating and customizing financial planning,
cost allocation, rate design, impact fee, and
miscellaneous service fee modules of our modeling
system. She has superior financial, business and
analytical skills and has provided our clients with
exemplary financial analysis based on application of
sound financial and economic concepts.
Specialist Skills
Long-Term Financial Plan
Development
Development of Impact Fees
Development of Capital
Finance Plans
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
10 5. EXPERIENCE
Our expertise helped communities across the globe–including over 350 diverse locations in the United States alone. The map below presents our extensive experience in providing similar studies throughout the country.
We have conducted rate studies throughout the country and have helped over 350 utilities to refine or restructure their rates to improve equity, efficiency, and transparency. We have included detailed descriptions of a few select projects on the following pages to demonstrate our experience and expertise, while the table below summarizes the wealth of our team’s California specific project experience. Note that all projects listed were completed within the past 10 years.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
11 This table presents a selection of our
experience in providing a full suite of
financial consulting services to clients
throughout California. Revenue Requirements Cost of Service Analysis Rate Structure Development Capacity Charges/Impact Fees Miscellaneous Fees & Charges Affordability Analysis/WARI TM Debt Issuance Support Capital Project Funding Grant & Loan Funding Services Custom Model & Tool Development Financial Policies & Benchmarking Public/Stakeholder Engagement Demand Forecasting Ordinance /Agreement Assistance Asset Management Services CA Casitas Municipal Water District ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ CA Christian Valley Park Community
Services District
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Auburn ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Anaheim, Water ▪
CA City of Bakersfield ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Berkeley ▪ ▪ ▪ ▪
CA City of Ceres ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Coachella ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Fresno ▪ ▪
CA City of Greenfield ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Jackson ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Lodi ▪
CA City of Manteca ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Merced ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Norco ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Palm Springs ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Richmond ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Ridgecrest ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Sacramento ▪ ▪ ▪ ▪ ▪ ▪
CA City of San Diego ▪ ▪ ▪ ▪ ▪ ▪
CA City of Santa Ana ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA City of Whittier ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA Coachella Valley Water District ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ CA East Bay Municipal Utility District ▪ ▪
CA Fullerton ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA Indian Wells Valley Water District ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ CA Moulton Niguel Water District ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA Needles Public Utility Authority ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA Ross Valley Sanitation District ▪ ▪ ▪ ▪ ▪
CA San Andreas Sanitary District ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA Santa Clara Valley Water District ▪ ▪
CA Soquel Creek Water District ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
CA Western Municipal Water District ▪ ▪ ▪ ▪ ▪ ▪
CA Whittier Water Authority ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
12 6. REFERENCES
This section presents current or recently completed projects. Within each description, we have included details of the project team members assigned to the project as well as reference contact information.
Dates of Services: 2018 – 2019
Project Team: David Hyder, Ben Stewart
Client Contact: Kyle Cason, Director of
Public Works
Whittier Utility Authority / City of Whittier
13230 Penn Street, Whittier, CA 90602
(562) 567-9500
[email protected]
Contract Amount: $105,000
WATER AND SEWER RATE STUDY & ANALYSIS
Whittier Utility Authority, California
Located approximately 12 miles southeast of Los Angeles, the City of Whittier is a predominantly residential community with a population of approximately 87,400 people. The City engaged Stantec to update its water and sewer user rates, and to update the water connection fee and develop a new connection fee for the sewer utility.
This project focused on helping the City become well positioned financially over the next five to ten years to provide ongoing operations while largely cash funding their utility capital improvement programs. Much of the City’s water and sewer infrastructure was built in the 1950s during a post WWII construction boom. Now the City’s utility infrastructure is ageing and in need of repair and replacement. In addition, the City wishes to continue to provide the same level of utility service to new development within the City, and therefore must fund and construct infrastructure projects to serve incoming residents and businesses without burdening existing rate payers.
Stantec’s work with the City included development of a 10-year financial forecast using Stantec’s FAMS modeling framework. Of key interest to the City was the ability to evaluate capital planning scenarios, flexing key variables including annual pipe replacement, operating and capital reserve development, and a combination of capital financing alternatives. This process of scenario analysis allowed the City to start with a project wish list, and then adjust and revise capital improvement programs to prioritize certain projects and maintain their stated planning goals and targets.
Stantec worked with the City to complete an updated cost of service analysis to account for new cost-drivers and help customer classes adequately reflect the needs of the City. Following completion of this COS study, Stantec developed a revised rate structure, focused on providing revenue stability while maintaining the ability to promote conservation and affordability. Stantec also prepared the utility connection fee analyses and recommended updated fees.
Stantec assisted the City in communicating the need for updated rates and fees to the City Council and community of rate payers. New rates and charges were adopted in June of 2019.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
13 Dates of Services: 2018 – ongoing
Project Team: David Hyder, Sally Van
Etten, Ben Stewart
Client Contact: Rudy Rosas
Senior Civil Engineer, City of Santa Ana
220 S. Daisy Ave., M-85,
Santa Ana, CA 92703,
(714) 647-3379,
[email protected]
Contract Amount: $160,025
COMPREHENSIVE WATER, RECYCLED WATER, AND
SANITARY SEWER RATE STUDY
City of Santa Ana, California
The City of Santa Ana, located in Orange County CA provides water, recycled water, and sewer services to a population of approximately 334,000. The City wished to review the cost basis for existing rates and establish a long-term financial plan that would allow them to proactively repair and replace capital infrastructure. Similar to other utilities in California, the water demand in Santa Ana has declined for a myriad of reasons. Our team worked with the City to develop updated water, recycled water, and wastewater rates for the City to recover projected operating cost increases; continue to repair and replace aging infrastructure; enhance financial stability of the utility; avoid the depletion of reserves; and comply with state and federal regulatory and legal requirements.
Stantec has worked with the City to establish a long-term/ten-year financial plan for each enterprise fund. As part of this effort, the project team assisted the City to evaluate multiple capital improvement scenarios and funding strategies. Our team has also worked with the City to review and update cost-of-service analysis to support equitable rates and fees. The recommended rate structure was designed for compliance with Proposition 218, enhancement of revenue stability, and both maintenance and enhancement of affordability for customers.
To augment the City’s messaging of the proposed rates, our team developed Proposition 218 mailers in multiple languages, developed a proposed rate increase website, and developed a rate survey for the water and wastewater enterprises. These deliverables allowed for the rate payers to understand the proposed rates, what services they are paying for, why they are needed, and how the resulting rates compare to other communities in the area.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
14 Dates of Services: 2019 – 2020
Project Team: David Hyder, Ben Stewart,
William Zieburtz
Client Contact: Richard Lou, Principal
Management Analyst
(510) 287-0399
[email protected]
Contract Amount: $74,700
WATER SYSTEM CAPACITY CHARGE STUDY
East Bay Municipal Utility District, Oakland, California The East Bay Municipal Utility District (EBMUD) is a public utility district which provides high quality water to approximately 1.4 million customers in the east bay communities of the San Francisco bay area. Among the chief challenges facing EBMUD are the needs to serve a rapidly growing community that is redeveloping old neighborhoods with new housing stock (especially multifamily housing redevelopment), and the need for additional investment to enhance EBMUD’s resilience to drought.
EBMUD utilizes Water System Capacity Charges (SCC) to recover appropriate shares of the costs of water distribution and water supply investments from new customers. The SCC program works in the same way as comparable programs in that it provides a mechanism to minimize the impacts of growth on the existing customer base. But EBMUD’s SCC program differs from many other fee programs in that it recognizes differences in typical demand profiles and capacity costs across geographic sub-areas. EBMUD has been collecting SCCs since 1983. SCC fee schedules have been increased annually based on a construction cost escalation factor for over a decade. EBMUD engaged Stantec in 2019 to conduct a comprehensive review of the existing SCC fee methodology, followed by an analysis to re-establish the cost basis of the fees to ensure they adequately fund the cost to provide water infrastructure to serve future development.
The ongoing SCC Study includes a comprehensive review of the methodology employed to calculate SCCs, as well as all procedures used to assess SCCs to individual applicants, with a particular focus on the justification and feasibility of adjusting the fee schedule to reflect lower the demand profiles of smaller multi-family residential units or other low water use situations. The water industry appropriately relies on “equivalent unit” approaches to manage multiple types of capacity related charges; EBMUD’s interest in the potential to reflect the reduced demand characteristics of small residential units created an opportunity for Stantec to support the District in a fresh and comprehensive analysis on this issue of increasing importance to many utilities.
The ongoing study also includes analysis of enhanced water demand records and updated projections to better understand peak and seasonal water demand patterns, and to reflect that knowledge in EBMUD’s SCC schedule. Seasonal demands and drought year water supply considerations are tremendously important in determining costs of water supply and infrastructure establishment, yet most capacity charge programs lean heavily on comparatively generic average daily demands. Recognition of individual peaks or seasonal or drought condition demand factors could have the potential to contribute to the development of a “next level” of beneficial differentiation and specificity in the allocation of costs to different types of new customers, as well as a meaningful enhancement in the equitable recovery of these costs through refined SCC approaches.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
15 INDEPENDENT WATER AND WASTEWATER RATE REVIEW
City of San Diego, California
Ongoing upward pressures on rates, combined with changes in the City’s utility cost structures and complex state requirements, led the City of San Diego to create an independent review function to aid the City in meeting its goal of providing safe and reliable services at the lowest possible costs while improving transparency of the City’s rate development and review processes. Stantec was engaged to provide this independent review function.
The cost-of-service studies conducted by the Public Utilities Department (PUD) and the existing rate consultant were seen by some stakeholders as needing a fresh look from an outside perspective to minimize risk of carrying forward outdated policies, assumptions, and methodologies. The San Diego City Council charged the City’s Independent Budget Analyst (IBA) with the responsibility of managing an explicitly independent review process to address future cost-of-service studies and rate proposals developed by the City’s PUD. The IBA fulfills this role in conjunction with the City’s Independent Rates Oversight Committee (IROC) as the key stakeholder, which serves as an official advisory body to the Mayor and City Council on policy issues relating to City PUD’s operations, financial management, and rate setting practices.
The complexity and difficulty of creating a meaningful independent review process led the IBA to engage Stantec to provide clear, objective, and unbiased analysis and advice regarding proposed rate changes. As is the case for many agencies around the country, the financial requirements for operation, maintenance, and rehabilitation of major systems of urban infrastructure create significant challenges to that specific goal of providing low-cost reliable service. Added to those challenges, the City’s Pure Water Program, a potable water recycling program that will provide one-third of San Diego’s water supply by 2035, as well as a shift in the wholesale water provider’s rate structure toward higher fixed charges will yield changes in the City’s cost structure, increased operational and planning complexity, and burdens that can seem enormously difficult from many perspectives as increases in rates and charges will be necessary.
Dates of Services: 2020 – ongoing
Project Team: Andrew Burnham, Ben
Stewart, William Zieburtz
Client Contact: Angela Colton, Fiscal &
Policy Analyst
202 C St., San Diego, CA 92101
(619) 236-6555
[email protected]
Contract Amount: $200,000
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises 16
7. SCHEDULE
The schedule below is intended to allow for completion of the study by the end of December. Given current staffing commitments, Stantec would be able to commence work on the study beginning in July of the current year. To assist with the completion of the study we have included an initial data request list for the Water & Wastewater Enterprise Funds in Appendix B of this proposal to begin the data transfer process such that the data could be available shortly after contract approval. Our project schedule assumes 3 on-site presentations, in addition to periodic online interactive meetings.
Task 1 Revenue Sufficiency Analysis and Financial
Planning
Task 2 Cost-of-Service Analysis
Task 3 Rate Design
Task 4 Reclaimed Water Cost Determination
Task 5 Review of Potential Demand and Usage
Task 6 Cost of Service Allocation Analysis
Task 7 Level of Cost Recovery and Rate Design
Task 8 Rate and Bill Comparisons
Task 9 Reports and Presentation
Work Element I: Water & Wastewater Enterprise
Work Element II: Reclaimed Water Enterprise Fund
Work Element III: Deliverables
December
City of Norco
Rate Analysis of Water, Wastewater & Reclaimed Water Enterprises Proposed Project Schedule
Tasks July
Month
August September November October
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
17 8. SIGNATURE
Mr. David Hyder has the authority to contract with the City. He can be reached at 1101 14th Street NW Suite 1200 Washington DC 20005, by phone at (443) 538-1175, or via email at [email protected]. Stantec Consulting Services Inc. is in good financial standing and can provide financial statements if requested by the City.
This proposal is a firm offer for a period of 90-days from the date this proposal was submitted. _____________________________________
David Hyder
Senior Principal
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
18 9. ESTIMATE OF CONSULTING FEE
Based upon our understanding of the scope of services requested by Norco, we propose to complete the requested scope of services for a total not-to-exceed fee of $88,655, inclusive of all expenses.
Any additional services requested by the City will be completed at the hourly rates noted in Section 3 below.
1. Labor Allocation
The summary table below demonstrates the labor allocation by task required to complete the requested scope of services, inclusive of all tasks we recommend completing.
2. Expenses
Our cost proposal is inclusive of all out-of-pocket expenses including, airfare, hotels and administrative costs such as printed materials and overhead costs.
3. Hourly Rate Schedule
The table below represent the hourly rates for each member of our proposed project team.
Hourly Rates
Technical Advisor $375
Project Director $335
Project Manager $250
QA/QC Advisor $250
Project Consultant $175
4. Cost Proposal
The following pages represents the detailed work plan and cost proposal to complete the Water, Wastewater & Reclaimed Water Rate Analysis. Please note that all expenses are included herein.
Task 1 Revenue Sufficiency Analysis and Financial Planning 86 Task 2 Cost-of-Service Analysis 40
Task 3 Rate Design 73
Task 4 Reclaimed Water Cost Determination 17
Task 5 Review of Potential Demand and Usage 16
Task 6 Cost of Service Allocation Analysis 14
Task 7 Level of Cost Recovery and Rate Design 60
Task 8 Rate and Bill Comparisons 6
Task 9 Reports and Presentation 49
Total Estimated Hours 361
Task Hours
Work Element I: Water & Wastewater Enterprise Funds
Work Element II: Reclaimed Water Enterprise Fund
Work Element III: Deliverables
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises $375 $335 $250 Task 1
1.1 0 1 1
1.2 0 1 1
1.3 0 1 1
1.4 0 0 0
1.5 0 0 1
1.6 0 1 1
→ Capital Improvements Program
- Project listing by year
- → Financial Policy Review, including reserve levels (operating, capital, and rate stabilization), capital reinvestment, etc. → Borrowing Program
-
- Timing of bond issue(s)/loan(s) to provide required borrowed funds → Revenue Sufficiency Analysis
- Annual revenue and operations & maintenance expense projections -
-
- 1.7 0 1 1
1.8 Review results with consulting team, make adjustments, and create alternatives scenarios of rate adjustments and CIP spending. 0 1 1
1.9 Meet with City staff in an interactive work session to review preliminary results [Virtual Meeting #1]. 0 2 2
1.10 1 1 1
1.11 Meet with City staff in a second interactive work session to review revised results [Virutal Meeting #2]. 0 2 2
1.12 0 0 0
Task 2 Cost-of-Service Analysis
2.1 0 1 2
2.2 0 1 2
2.3 1 1 2
2.4 0 1 1
2.5 2.6 0 1 1
-- included in Ta
Identify any borrowing required and/or appropriate to fund certain CIP projects, to include but not necessarily be limited to, revenue bonds and state programs.
Perform a detailed review and analysis of historical billed volume and customer data to observe trends in demands, usage patterns and customer growth in order to develop projections of customers and usage for all customer classes.
Evaluate budget versus actual performance (O&M and capital) to determine proper funding levels to include in rate revenue requirements as well as trends in annual expenses to inform future cost escalation factors/assumptions.
Identify potential changes to rate classes, including adding or combining existing rate classes.
Meet with City staff in an interactive work session to review preliminary results [Virtual Meeting #2].
Allocate costs/revenue requirements to functional cost components and then to customer classes based upon appropriate allocation criteria and usage characteristics. Identify any potential customer rate subsidization that may exist as well as impact of peak demands on cost of service.
Projections of other revenue requirements such as R&R, minor capital, transfers, debt service/loan payments, Evaluation of adequacy of revenue provided by existing rates to meet current and projected system requirements Alternative plans of annual percentage rate adjustments to provide sufficient revenues over a multi-year projection Make adjustments as required based upon input from City staff and prepare revised workbook of assumptions and preliminary results.
City of Norco
Rate Analysis of Water, Wastewater & Reclaimed Water Enterprises Project Work Plan and Estimated Hours Schedule Rates →
Project
Manager
Q
A
Project Tasks
Estimated Labor-Hou
Technical
Advisor
Project
Director
Work Element I: Water & Wastewater Enterprise Funds
Perform adjustments, finalize module/resulting allocations based upon input from City staff.
Input current financial and billing data into our financial planning module, run the model, and produce preliminary output, including a five and ten year financial management program that will include the following:
Prepare initial data request list and detailed critical path schedule.
Conduct kickoff conference call with City Staff for data collection and to finalize understanding of study objectives, approach, timeline, etc.
Compile and review historical, current, and projected financial, and other system data as provided by staff.
Identify all test year costs/revenue requirements associated with the provision of water and sewer service.
Review billing data and existing customer classes to determine recommended customer classes for cost allocation and rate design.
Evaluation of existing and alternative capital improvement programs and funding requirements Make adjustments to the module as required to calibrate to the utility's specific financial dynamics.
Make adjustments as required based upon input from City staff, and prepare workbook of assumptions and preliminary results.
Revenue Sufficiency Analysis and Financial Planning
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises 20 $375 $335 $250 $250 $175 Task 3 Rate Design
3.1 1 1 4 0 4 10
3.2 1 1 4 0 4 10
a. b. c. d. e. 3.3 Develop User Fees:
a. Load billing history data into our rate module and create a bill frequency analysis. 0 1 1 1 6 9 b. Conduct a revenue test to ensure accuracy of billing data. 0 0 0 0 2 2 c. 0 0 0 1 3 4
d. Run the model and prepare rate structures that reflect the following considerations: 1 1 1 1 4 8 - Recovery of current and future costs of service in accordance with established and anticipated legal standards and regulations - Project demands of the customer base of the City
- Age and condition of the City's systems
- Funding requirements for all current long-term liabilities and debt requirements - Consistency with industry practice for utility rate making in the region e. 0 1 2 1 6 10 f. Review results with consulting team and adjust as required. 1 2 2 1 6 12 g. Meet with City staff in an interactive work session to review preliminary results [Virtual Meeting #2]. h. 0 0 2 2 4 8
Work Element II: Reclaimed Water Enterprise Fund
Task 4
4.1 1 2 2 1 6 12 →
→
→
→
4.2 0 1 1 1 2 5
Task 5 Review of Potential Demand and Usage
5.1 1 1 1 1 4 8
5.2 1 1 1 1 4 8
Task 6 Cost of Service Allocation Analysis
6.1 0 2 2 1 4 9
6.2 0 1 2 0 2 5
Compliance with legal precedent and generally accepted industry practice (national and local).
Fair and equitable distribution of costs to customers in proportion to the benefit received and/or demand placed on the system.
Conduct a diagnostic analysis of the current utility rate structures (for all classes, including residential, commercial and irrigation) to identify strengths and weaknesses in terms of but not limited to the following criteria:
City of Norco
Rate Analysis of Water, Wastewater & Reclaimed Water Enterprises Project Work Plan and Estimated Hours Schedule
Total
Project Rates →
Project
Manager
QA/QC
Advisor
Project Tasks
Estimated Labor-Hours
Technical
Advisor
Financial
Analyst
Project
Director
Set up the rate model in conformance with the rate design evaluation in Task 3.1 and the cost allocation results of Task 2.
Ease of administration and understanding to City staff and customers.
Prepare a customer impact analysis to compare the recommended water and sewer rates for each class of customer and compare those rates to the existing rates.
Perform adjustments, finalize module/resulting rate design adjustments based upon input from City staff.
Reclaimed Water Cost Determination
Estimate potential bulk customer usage based on current non-potable usage and system demands.
Identify all costs associated with producing and delivering reclaimed water to include, but not necessarily be limited to the following:
Allocate all identified costs to those costs associated with providing reclaimed service to potential reclaimed customers.
Estimate retail customer based on system demands and discussions with City Staff.
Review existing rates and rate structure methodologies including the cost distribution to various rate categories, including all retail and wholesale rates.
Consistency with community policies and management objectives regarding such things as affordability, conservation, Fiscal stability/risk of the utility.
Treatment costs
Transmission
Allocate costs requirements to functional cost components for reclaimed water and then to customer classes based upon appropriate allocation criteria and usage characteristics.
Other costs as identified during the Study
Pumping and storage costs.
-- included in Task 1.11 --
Review the cost allocation spreadsheet with City staff and adjust as appropriate
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises 21 $375 $335 $250 $250 $175 Task 7 Level of Cost Recovery and Rate Design
7.1 0 2 4 4 6 16
a. b. c. d.
7.2 a. 0 1 1 0 4 6
b. 0 1 1 0 4 6
c. 0 1 3 3 6 13
d. 0 1 3 0 4 8
e. 0 1 3 3 4 11
Work Element III: Deliverables
Task 8 Rate and Bill Comparisons
8.1 0 0 0 0 6 6
8.2 Task 9 Reports and Presentation
9.1 1 4 4 2 12 23
9.2 0 1 4 0 0 5
9.3 1 2 2 0 0 5
9.4 0 1 1 1 1 4
9.5 0 4 0 0 0 4
9.6 0 4 0 0 0 4
9.7 0 4 0 0 0 4 TOTAL ESTIMATED LABOR-HOURS 11 58 71 33 188 361 TOTAL ESTIMATED FEE $4,125 $19,430 $17,750 $8,250 $32,900 $82,455 ESTIMATED EXPENSES $6,200 TOTAL NOT-TO-EXCEED FEE $88,655 City of Norco
Rate Analysis of Water, Wastewater & Reclaimed Water Enterprises Project Work Plan and Estimated Hours Schedule
Total
Project Rates →
Project
Manager
QA/QC
Advisor
Project Tasks
Estimated Labor-Hours
Technical
Advisor
Financial
Analyst
Project
Director
Attend final public hearing to adopt rates [On-Site Meeting #3] Develop reclaimed water rates under the selected rate structure:
Prepare a benchmarking of water, sewer and reclaimed water rates for surrounding and comparable utilities.
Make adjustments based upon input from City staff during the interactive work session.
Load all cost, demand and projected usage data into the reclaimed rate model.
Other as identified during the Study.
Meet with City staff to review and discuss the results [Virual Meeting #3]. -- included in Task 7.2d -- Identify alternative rate structures for the provision of reclaimed water service to include, but not necessarily be limited to the following rate components:
Reserved capacity fee.
Fixed monthly service charge or minimum usage charge.
Usage rate per 1,000 gallons.
Prepare presentation of the results of the study.
Adjust our interactive rate model to calculate the reclaimed water rates for potential classes of customers as defined in this Study.
Review results with consulting team and adjust analysis as required.
Conduct an interactive work session with City staff to review the preliminary results. [Virtual Meeting #3] Attend public workshop with City Council [On-Site Meeting #2] Review presentation with City staff and make adjustments as needed.
Attend public workshop with Streets, Trails and Utilities Committee [On-Site Meeting #1] Adjust analysis and prepare final recommendations.
Prepare draft report of the results of the study, and provide to City staff for review and comment.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
22 APPENDIX A: RESUMES
Resumes for the proposed project team members, as identified in Section 4 - Personnel, are presented on the following pages:
David Hyder
Andrew Burnham
Ben Stewart
Kevan Cook
Danica Katz
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
23 David is a Senior Principal with Stantec, applying engineering, environmental and financial expertise to a broad range of projects for clients. Mr. Hyder has 25 years of professional experience, and he specializes in assisting public sector clients with the financial and managerial aspects of environmental infrastructure. He has served as a project manager for hundreds of cost of service and rate studies for water, wastewater, storm water, reclaimed water and solid waste utilities, including development of financial plans, cost of service analysis, rate structure design and evaluation, and project reporting. He has also assisted several communities around the country with the establishment of storm water utilities. Mr. Hyder is currently serving on the AWWA Rates and Charges Committee and served as a contributing author for the recent editions of the AWWA Manual M1 – Principles of Water Rates, Fees and Charges, including contributions to the System Development Fee chapter.
Education
Master of Business Administration in Finance, Johns
Hopkins University, Baltimore, Maryland, 2002
Bachelor of Science, Civil / Environmental
Engineering, Michigan State University, East
Lansing, Michigan, 1998
Memberships
Rates and Charges Committee, American Water
Works Association
Publications & Presentations
WEF National Conference: Basics of Water and
Sewer Rates Workshop, September 2012
AWWA National: Declining Revenues and Your Rate
Structure, June 2012
Virginia GFOA: Achieving Utility Rate Sustainability,
August 2010
Chesapeake Section AWWA Annual Meeting:
Setting Rates for Utility Consolidation, August 2009
WE&T Magazine: Rate Setting for Community
Systems, June 2009
Principals of Water Rates, Fees and Charges,
AWWA Manual M1: Contributing Author, Sixth
Addition
Project Experience
City of Norco, California
David served as Project Manager for a
comprehensive water, sewer and recycled water rate
study for the City, including the development of a
financial forecasting model, cost of service analysis
and water rate structure evaluation. A key
component of the study was the identification of an
approach to help stabilize the City’s water system
revenues in light of significant reductions in water
sales due to drought restrictions. Based on our
recommendations, the City has taken several steps
to enhance the revenue stability of the Water Fund
including the adoption of a rate stabilization
reserves, increasing the portion of the revenues
from fixed charges and adoption of drought rates.
East Bay Municipal Utility District, California
David served as the project manager for a
comprehensive water system capacity charge
analysis for EBMUD. The study included the
development and analysis of detailed customer
class usage characteristics and examination of
changes in development patterns to determine an
appropriate structure for charging new customers
joining the water system. The study considered
capacity charges for affordable housing and for “tinyhouse” developments.
David Hyder
Project Director
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
24 Loudoun Water, Virginia
David has provided Loudoun Water with financial
consulting expertise for several years. He has
managed several comprehensive rate and cost of
service studies for the utility as well as conducted
numerous special purpose studies. The most recent
comprehensive plan development included the
development of a plan to finance the construction of
a new water supply Authority including an intake,
reservoir, and the Authority’s own water treatment
plant. Mr. Hyder has assisted Loudoun Water with
the development of financial policies including
establishment of appropriate reserves as well as
comprehensive rate and fee development for water,
wastewater, and reclaimed water.
City of Cleveland, Ohio
David served as the Project Manager responsible for
completion and oversight of five-year financial plan
for Division of Water and Water Pollution Control.
The Study included development of fully
functionalized cost of service, rate structure
evaluation, demand model development and project
reporting.
City of Portsmouth, New Hampshire
David has been engaged with the City of Portsmouth
for several years providing water, wastewater, and
storm water financial consulting expertise. He has
served as Project Manager for the development of
financial plans for the water and sewer systems
including the development of a rate plan to facilitate
the funding of an $80 million upgrade and expansion
of the City’s wastewater treatment plant. Dave also
served as project manager for the completion of a
storm water utility feasibility study for the City in an effort to develop a dedicated funding source for the
City’s storm water system.
City of Olathe, Kansas
David served as the Project Manager for a
comprehensive water, sewer, storm water and solid
waste rate study for the City. The study included the
development of revenue requirements, cost of
service allocations by customer class, and rate
structure design for the City’s four enterprise funds.
Dave managed the development of financial models
for each fund, on a consistent modeling platform that
will allow the City to track and manage the finances
of the funds in the future. As part of the storm water
utility analysis an alternative approach to billing for storm water was developed that transitioned the City
from using gross parcel size to impervious area
resulting in greater equity.
Prince William County Service Authority, Virginia
David is currently serving as Project Director for the
development of a comprehensive reserve policy
review for the Authority. PWCSA currently maintains
four reserve funds including an operating fund,
replacement fund, expansion fund and commitment
fund. Our project team is currently developing a
financial model to assist in the establishment of a
target range for balance for each of the Authority’s
funds. Our project team will also be commencing a
full cost of service and rate study for the Authority
within the next few months.
Toho Water Authority, Florida
David has served as the Project Director for several
engagements with the Toho Water Authority. Most
recently, he assisted with the development of a
water budget-based rate structure for the Authority’s
commercial reclaimed water irrigation customers.
The structure includes irrigation tiers based on
landscaped area for each individual customer. The
structure was recently adopted by the Authority and
is the first of its kind in the State of Florida. David has also assisted with the calculation of the
Authority’s bulk reclaim water rates and a
comprehensive analysis of the utility’s system
development charges.
Orange Water and Sewer Authority, North
Carolina
David has served as Project Manager for several
comprehensive water and sewer rate studies for
OWASA. The studies have included development
of financial plans, detailed cost of service analysis,
rate design and analysis of system development
charges. He is currently engaged with the Authority
to re-examine the Authority’s system development
charges in light of new legislation in the State of
North Carolina pertaining to these fees.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
25 Andy is the Vice President and Global Practice Leader of Financial Services at Stantec. Andy has extensive experience in conducting as well as overseeing cost-of-service allocations, long-term financial planning analyses, and development of alternative rate structures for a variety of utility systems, including water, wastewater, reclaimed water, stormwater, solid waste, recycling, electric, and natural gas. He has been recognized as an industry expert as part of providing testimony in utility rate-related regulatory proceedings in multiple states and territories (including Florida, Michigan, Arizona, and the United States Virgin Islands), as well as before the Federal Energy Regulatory Commission. He has led well over 500 studies for 150+ local governments and has supported our clients in the issuance of $1 billion of bonds for projects in the past 5 years.
Andy is currently serving on multiple AWWA and WEF Committees and was actively involved in the recent update to AWWA Manual M1 – Principles of Water Rates, Fees and Charges, notably in regard to outside-city retail rates, wholesale rates, and reuse rates. In addition, Andy led the development of the Cash Reserve Policy Guidelines Report recently published by the AWWA and was recently an instructor at the Michigan State University Institute of Public Utilities Advanced Ratemaking Program focused on complex water resources issues.
Education
Bachelor of Business Administration, Lake Superior
State University, Sault Ste. Marie, Michigan, 2000
Memberships
Rates and Charges Committee, American Water
Works Association
Financial Accounting & Management Controls
Committee, American Water Works Association
Management Committee, Water Environment
Federation
Government Finance Officers Association, Florida
Section
Utility Resource Management Committee, National
Association of Clean Water Agencies
Publications & Presentations
Money Matters - Utility Cash Reserves, Journal
AWWA, 2018 (co-author)
Paying for Stormwater - Engaging the Community,
American Public Works Association Annual
Conference (PWX), Orlando, FL, 2017.
Can Conservation Rates be Tied to the Cost to
Serve? American Water Works Association Annual
Conference & Exposition, Philadelphia, PA, 2017.
Reclaimed Water Expansion: An Approach that
Makes Sense, AWWA Annual Conference &
Exposition, Philadelphia, PA, 2017.
Project Experience
Independent Water and Wastewater Rate Review
| City of San Diego, California
Andy is serving as the Project Director in an
engagement with the City of San Diego to assist the
Independent Budget Analyst’s office and provide an
independent review function to aid the City in
meeting its goal of providing safe and reliable
services at the lowest possible costs while improving
transparency of the City’s rate development and
review processes. Stantec is providing technical
assistance to the IBA and the IROC to help the City
make the right decisions, including independent
review of cost of service and rate proposals for
accuracy and compliance with industry practices and
substantive requirements of Proposition 218,
perspective from rate and user charge strategies
used in other communities, analysis in response to
IBA, IROC, or Council questions or comments, input
and innovative solutions as might be beneficial from
other rate proceeding processes, and assistance in
communicating the implications of any proposed
changes in rates. By independently assessing the
accuracy, clarity, and fiscal responsibility and
Andrew Burnham
Technical Advisor
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
26 appropriateness of rate proposals, Andy is helping
the IBA and IROC to build the context needed by
City Council as it contemplates further rate
increases.
Western Area Water Authority | North Dakota
Andy is serving as the Project Manager on a
financial feasibility study for the Authority as required by the 2017 legislature. As part of the study, our
team quantified the amount of excess capacity
available on a locational basis to evaluate the
potential of firm and interruptible service offerings
that would effectively change the Authority’s primary
role to more of a pure wholesaler of water to local
private water companies. The study incorporated
potential revenue from a new concession-based
business model, with the intent of stabilizing cash
flows and achieving financial sustainability to
support continued domestic rural water supply in the
region.
Pinellas County | Florida
Andy has served as the Project Manager for the
County for nearly ten years, including a
comprehensive Water, Wastewater and Solid Waste
Rate Study and several annual updates. During
these studies, Andy has used our FAMS-XL model
to develop ten-year financial plans for the water,
sewer, and solid waste enterprise funds. He has
also conducted a benchmarking analysis, assisted
County staff in evaluating the underlying cost of
operations, and conducted detailed cost allocation
and overhead studies for the Utilities Department.
Brunswick-Glynn County Joint Water & Sewer
Commission | Georgia
Andy has 1) developed annual ten-year financial
management plans for the water and sewer systems
within the JWSC’s two districts, 2) prepared loan and
bond feasibility reports, 3) calculated updated water
and sewer capital tap fees (impact fees) for each
district, 4) calculated public and private fire
protection charges, 5) developed a uniform
conservation rate structure for its two service
districts, and 6) prepared a detailed rate manual that
explains the purpose, intent, and structure of all its
rates and charges.
Town of Gilbert | Arizona
Andy served as the Project Manager for a
comprehensive Water, Sewer, Reclaimed Water,
Environmental Services (Sanitation), and
Stormwater Rate Study (Study) for the Town. As part
of the study, for each utility system, we performed a
revenue sufficiency analysis, detailed cost-of-service
allocation, and rate structure analysis. We
developed several modifications to the Town’s
existing rate structures, notably including a new
inclining block water rate structure. He also
completed a cost allocation study for the wastewater
system and a stormwater rate program feasibility
study.
City of Olathe | Kansas
Andy served as the Project Director for a
Comprehensive Utility Rate Study for the City. For
each service – including Solid Waste, Water, Sewer,
and Stormwater – we developed customized
financial models including ten-year financial plans
and identification of alternative plans of rate
adjustments, reviews of alternative capital spending
and operational scenarios, and other sensitivity
analyses. Andy provided guidance to support the
detailed cost allocation analyses for each fund and
developed alternative rate structures to ensure fair
and equitable rates for each service.
City of Greenfield | California
Andy served as Project Manager during the conduct
of a long-overdue comprehensive water and
wastewater rate study for Greenfield. Rates were
designed to fund the utility’s projected costs of
providing service while proportionally allocating
costs among customers, providing a reasonable and
prudent balance of revenue stability, and complying
with the substantive requirements of California
Constitution Article XIII D, Section 6 (Prop 218).
City of Denton | Texas
Andy led a comprehensive cost-of-service and rate
design study for the City’s water and sewer utilities.
The study included the development of a ten-year
financial management plan, including identification
of annual rate increases, amount, and timing of
required borrowing to fund the capital improvement
program, establishment of proper reserve levels,
and maintenance of adequate debt service coverage
levels. An important component in the study was a
rate stabilization reserve to address the issue of
revenue volatility due to weather conditions and
demand reductions.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
27 Kevan is a senior consultant for Stantec, with a background in business administration and analytics from the University of South Florida. Prior to Stantec, Kevan worked for the State of Florida in administration and disaster preparedness roles. He now has experience working with water, wastewater, and stormwater utilities, assisting in financial planning, analysis, and rate studies. Kevan's skills include developing and customizing long-term financial planning modules of our FAMS modeling system, cost allocation, and rate design models. Kevan has also been involved in bond feasibility studies, fire assessment studies, and general fund studies.
Education
MBA, Business Administration, University of South
Florida
Project Experience
General Fund Revenue Sufficiency Analysis |
Town of Cary | Cary, NC | Senior Consultant
Kevan works as the senior consultant with the Town
of Cary to support annual updates to the Town’s
financial model. This project involves numerous
iterations and comparisons between proposed
budgets and levels of capital spending. As part of
this project, Kevan facilitated the creation and
performs annual updates to the Town’s web-based
FAMS, including the development of various
scenarios and custom deliverables.
Water, Sewer, and Reclaimed Water Rate
Consulting Services | Pinellas County |
Clearwater, FL | Senior Consultant
Kevan served as the senior consultant for a
comprehensive water, wastewater, and reclaimed
water rate study. This engagement included the
development of a 10-year financial management
plan, cost of service analysis, and rate design for the county's water and wastewater enterprise fund. The
financial management plan considered the county's
level of capital spending, operating and capital costs
projections, and an evaluation of performance as
compared to key performance indicators. The costof-service analysis identified the costs to provide service by system function to guide the
recommended rates for retail and wholesale
customers. The rate design component included a
diagnostic review of current retail rate structure to
compare to industry practices, recommendations for
improving cost recovery from fixed charges for water
and sewer service and simplification of the county's
reclaimed water rate structure. The county
unanimously approved the recommended rates, rate
structure, and corresponding multi-year rate
adjustment plan.
Stormwater, Water and Sewer Consulting
Services | City of Tarpon Springs | Tarpon
Springs, FL | Senior Consultant
Kevan serves as a senior consultant, annually
updating the city’s comprehensive water and sewer
and stormwater revenue sufficiency analyses. Kevan
has developed 10-year financial management plans
for the city’s water and sewer, and stormwater
enterprise funds. He has also participated in the
calculation of water and sewer impact fees, and a
total cost of ownership analysis done in support of
legislative requirements.
Water and Sewer RSA | City of Annapolis |
Annapolis, MD | Analyst
Kevan performed a revenue sufficiency analysis for
the Water and Sewer utilities of Annapolis, MD.
Using budget and billing data provided by the city,
Kevan built a 5-year financial model and helped the
City understand what level of rate increases over a
5-year period would be necessary to sustain water
and sewer operations and account for future capital
spending.
Kevan Cook
Project Manager
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
28 Water and Sewer Revenue Sufficiency Analysis |
Okaloosa County | Okaloosa County, FL | Senior
Consultant
Kevan serves as a senior consultant and annually
updates the County’s comprehensive water and
sewer revenue sufficiency analysis. During these
updates, Kevan develops 10-year financial
management plans for the water and sewer
enterprise fund and has helped with the calculation
of updated water and sewer impact fees.
Stormwater Rate Study | Pasco County | Pasco
County, FL | Consultant
Kevan has worked as an analyst and consultant with
Pasco County Solid Waste to complete multiple
revenue sufficiency analyses (2019, 2021, and
2022), an impact fee analysis, and a solid waste fee
structure review and feasibility analysis to evaluate
potential modifications to the assessment and
revenue collection methodology.
Revenue Sufficiency Analyses | Orange County
Utilities | Orlando, FL | Project Consultant
Kevan has served as a project consultant with
Orange County Utilities Solid Waste, completing
revenue sufficiency analyses in 2021 and 2023, as
well as performing a cost of service analysis to
determine the adequacy of current tipping fees as
well as an evaluation of additional fees for services
(such as a separate fee for mattresses).
Water and Sewer RSA and Utility Acquisition
Analysis | Pasco County, FL | Senior Consultant
Kevan serves as the senior consultant for Stantec's
water, sewer, and reclaimed water utility, public
works department (stormwater, roads, dredging),
and solid waste systems financial services work
including rate studies, impact fee analyses, utility
acquisition feasibility studies, and bond feasibility
studies. For the water and sewer utility, he has
conducted annual revenue sufficiency analyses from
2019 to present and comprehensive cost allocation
and rate design studies in 2021 where he helped
develop a four-year rate plan for the utility. He also
leads the feasibility analyses guiding the county’s
potential acquisition of other utility systems. He also served as the lead consultant on a stormwater
revenue sufficiency analysis which helped the
county develop and update a 10-year financial
management plan which has led to further action by
the County in how stormwater capital projects are
planned for and executed and performed a rate
structure rate design analysis to help the county
evaluate alternative stormwater assessment
methodologies and fee structures.
Integrated Financial Sustainability Analysis and
Fire Assessment | City of Cocoa | Cocoa, FL |
Analyst
Kevan served as an analyst on the Stormwater Rate
Study for the City of Cocoa including a revenue
sufficiency analysis, cost of service analysis, rate
structure modification, billing and collection
methodology review, and implementation with the
Tax Collector. He used the financial data provided
by the city to create a model to project future
financial performance and recommend rate
increases. Kevan also helped perform an analysis
that ultimately recommended a tiered rate structure
for single family residential customer class and a
measured based fee structure approach for nonsingle family customer class. As a result, the fee structure was modernized resulting in increased
equity. The City choose to implement a non-ad
valorem billing and collection method over the
current utility billing due to ease of administration
and an expected increase in collection rates.
Stormwater Rate and Impact Fee Update | City of
Lynn Haven | Lynn Haven, FL | Project Analyst
Kevan served as the project analyst on the Stantec
team to update the City of Lynn Haven's existing
stormwater rate and impact fee. Hurricanes had
caused significant flooding and damage to the small
coastal town along the panhandle of Florida,
resulting in increased costs to the stormwater
program. Kevan was involved in populating and
analyzing the data used in the revenue sufficiency
analysis model, as well as conducting a thorough
analysis of property data used to allocate
stormwater costs to different customer classes and
tiers. Stantec assisted the city with evaluating the
benefits to move the fee from monthly bills to a nonad valorem assessment beginning in October 2021 and provided implementation assistance with Public
Hearings and Community Stakeholder meeting. The
City was able to generate more revenue that
provided match for capital improvement grants and
much needed revenue to fund maintenance and
operations.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
29 Benjamin has used his diverse background to successfully lead clients through the process to develop long term financial plans, design cost-of-service based rates, assess affordability impacts to ratepayers, and improve customer assistance programs. Benjamin has also helped clients structure plans for the future through development of fund reviews and benchmarking studies, comprehensive funding strategies, and business case evaluations and feasibility studies of capital investment alternatives. He is currently Stantec’s lead consultant when addressing complex affordability issues with our enhanced WARi™ methodology. His background in engineering and economics provides a well-rounded understanding of utility operations and capital planning that is often integrated into economic evaluations, affordability assessments, and financial planning studies.
Education
MS – Mineral & Energy Economics, Colorado School
of Mines, 2015
MS – Environmental Engineering, University of
Nebraska – Lincoln, 2011
BS – Civil Engineering, University of Nebraska –
Lincoln, 2009
Memberships
Graduate Research/Teaching Assistant, Colorado
School of Mines, 2013-2015
Graduate Research Assistant, University of
Nebraska-Lincoln, 2009-2011
Member – American Water Works Association
(AWWA), 2015
Project Experience
Independent Water and Wastewater Rate Review
| City of San Diego, California
Benjamin is serving as the Project Manager in an
engagement with the City of San Diego to assist the
Independent Budget Analyst’s office and provide an
independent review function to aid the City in
meeting its goal of providing safe and reliable
services at the lowest possible costs while improving
transparency of the City’s rate development and
review processes. Stantec is providing technical
assistance to the IBA and the IROC to help the City
make the right decisions, including independent
review of cost of service and rate proposals for
accuracy and compliance with industry practices and
substantive requirements of Proposition 218,
perspective from rate and user charge strategies
used in other communities, analysis in response to
IBA, IROC, or Council questions or comments, input
and innovative solutions as might be beneficial from
other rate proceeding processes, and assistance in
communicating the implications of any proposed
changes in rates. By independently assessing the
accuracy, clarity, and fiscal responsibility and
appropriateness of rate proposals, Benjamin is
helping the IBA and IROC to build the context
needed by City Council as it contemplates further
rate increases.
City of Sacramento | California
Benjamin is responsible for project management of a
Department of Utilities Storm Drainage Fund
Review, managed by Sacramento’s City Auditor’s
office. The project is intended to provide an
independent review of the Storm Drainage Fund’s
financials in addition to an assessment of their
operations, asset valuation, and capital plan.
Through benchmarking and a detailed review of the
fund’s historical and near-term projected financial
performance, the project will produce a financial gap
analysis to better understand the drivers of historical shortfalls. Using this information, we will develop a
fiscal forecast, incorporating a range of potential
funding options, to provide the City with a detailed
understanding of the options available to meet their
funding needs into the future.
Benjamin Stewart
Project Manager
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
30 Stormwater Funding Analysis | San Diego,
California
Benjamin was responsible for project management,
research, and analysis as Stantec’s team, with Tetra
Tech stormwater engineers, developed a
Stormwater Infrastructure Needs Assessment and
Funding Strategy for the City of San Diego. This
work consisted of developing a historical funding
gap analysis, funding options evaluation, and
stormwater funding roadmap to help the City meet
its stormwater infrastructure investment needs.
Funding options were primarily composed of
enhancing internal revenue sources (fees, transfers,
parking citations), developing new internal revenue
sources (new fees, assessments, special taxes),
grants and loans. Benjamin is currently responsible
for project management and model development in
a subsequent engagement, again partnered with
Tetra Benjamin is currently responsible for project
management and model development in a
subsequent engagement, again partnered with Tetra
Tech, to forecast potential funding options (e.g.
grants, loans, alternative revenues, transfers, etc.),
in addition to creating a long-term planning and
tracking tool that the City can incorporate into its
financial and operations planning process. The
model will integrate with the City’s asset
management and financial/account data systems for
streamlined updating, tracking of plan vs. actuals,
and a central point of contact for operations, capital, and financial reporting.
City of Fullerton | California
Benjamin developed a comprehensive financial plan,
cost-of-service (COS), and rate design study. In
addition to the expiration of the City’s existing rate
ordinance, this project was focused on addressing
the City’s extensive needs for reinvestment in their
buried infrastructure. Development of the 10-year
financial forecast focused on providing the ability to
evaluate capital planning scenarios, flexing key
variables including annual buried pipe replacement,
operating and capital reserve development, and a
combination of capital financing alternatives. The
COS and rate design process enabled the City to
eliminate unnecessary or redundant customer
classes while ensuring an equitable allocation of
costs among customers with differing consumption
characteristics
City of Merced | California
Benjamin oversaw research and analysis of viable in
the establishment of a Special Assessment District
for the City. Specific work consisted of determining
methods of allocating special benefits to parcels
within the district in a defensible manner. As the City planned for continued development, a special
assessment district was desired to fund capital
projects required to provide sewer service to the
new parcels. Our guidance helped define the
parameters of the District. Benefit apportionment
methods compliant with CA Proposition 218 were
identified and proposed to assist in the formation of
the new district.
City of Whittier | California
Benjamin was responsible for overseeing modeling
and spearheading sewer portion of the rate study as
the team worked with the City to develop a politically
viable schedule of rate adjustments, in addition to
structural changes to the way the City charges
customers, ensuring the City can meet ongoing
capital investment needs and introducing a fixed
charge component to the City's sewer rate revenue
stream. Additional analyses were required to
develop a defensible justification for the City's
maximum bill level for residential customers, in
addition to determining the appropriate level of credit to be applied to customers living in private
developments with privately maintained sewer
infrastructure.
City of Omaha | Nebraska
Benjamin served as the lead consultant responsible
for developing, updating, and customizing financial
planning models. Financial plans were developed to
evaluate multiple capital, operating, and financing
scenarios within the City’s CSO program to assess
the impact of debt financing and necessary rate
increases. The financial planning model was
licensed to the City following a training workshop
conducted with City Public Works and Finance
Department staff. Benjamin also led in the
development of a financial capability assessment
(FCA) including a complete WARi™ affordability
analysis to analyze affordability impacts to rate
payers at the census tract level accounting for lowincome assistance programs.
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
31 As a consultant for Stantec, Danica brings experience performing financial modeling and rate studies for water and wastewater utilities. Her skills include developing and customizing revenue sufficiency, cost allocation and rate design models to assist clients achieve their financial goals and provide best possible solutions. Danica also has experience performing water and wastewater impact fee studies, wholesale rate analysis and financial benchmarking studies.
Education
BS, Civil Engineering, University of Central Florida
MS, Management, University of Florida, Gainesville
Memberships
Member – Society of Women Engineers, Student
Chapter (SWE), 2014-2016
Board Chair – American Society of Civil Engineers,
Student Chapter (ASCE), 2015
Project Experience
Water & Sewer Cost Allocation Analysis | City of
Bismarck | Bismarck, ND | North Dakota |
Financial Analyst
Danica served as a financial analyst for this water
and sewer cost allocation analysis. She identified all
costs and revenue requirements associated with the
provision of water and sewer service from the
preferred financial forecast alternative. Danica
analyzed the city's updated billing consumption
records, AMI and GIS data, and service agreements,
to confirm the customer classes and customer usage
profiles/patterns to be evaluated for purposes of cost
allocation & rate design. She allocated costs and
offsetting revenue to identified functional
components of each utility system and determine the
unit cost of each function. Danica also performed
customer impact analysis and presented the results
to client.
Water Cost Allocation Analysis | City of Marion |
Marion, IN | Financial Analyst
As a financial analyst, Danica performed a
comprehensive water system cost allocation and
rate structure analysis in support of proposed water
rates. She developed a phased implementation plan
to integrate recommended rate increases.
Revenue Sufficiency and Cost Allocation Study |
City of Hendersonville | Hendersonville, NC |
Financial Analyst
Danica served as a financial analyst for a
comprehensive 10-year revenue sufficiency and cost
allocation study for the city’s water and sewer
system. This project included the examination of
historical operating expenses, growth and
consumption trends, alternative capital improvement
spending levels, debt service coverage ratios, levels
of operating and capital reserves, and other financial
policies/goals that affect the future revenue
requirements of the city. A system development fee
analysis was also conducted to develop water and
wastewater fees based on appropriate methodology,
review of assets, and capital improvement.
Water and Sewer Cost Allocation Study | Harpeth
Valley Utility District | Nashville, TN | Financial
Analyst
As a financial analyst, Danica identified all test year costs/revenue requirements associated with the
provision of water and sewer service from current
financial model to conduct an updated cost
allocation analysis for the water and wastewater
system to inform potential rate adjustments.
Danica Katz EIT
Consultant
Stantec // City of Norco // Rate Analysis of Water, Wastewater, and Reclaimed Water Enterprises
32 APPENDIX B: DATA REQUEST LIST
Water and Sewer Enterprise Funds
Section A: Financial Data (FYE = Fiscal Year Ending)
1. Preliminary/draft Statement of Net Position and ACFR for FYE 2022 (i.e. as of 9/30/22)
2. Un-audited trial balance for FYE 2022 showing detailed distribution of various accounts
3. Actual vs. Budget (in line item detail by division/department) for revenue and expenses. We would like to obtain budget information at the most detailed level available a. FY 18 – FY 23
b. FY 24 (budget and YTD)
c. FY 25 (proposed budget only)
4. Current 5 and/or 10-year CIP Budget, including project descriptions, funding sources, O&M impacts, % expansion, and identification of any prior year appropriations
5. Copy of all wholesale and/or inter-local service agreements, including any billing summaries with monthly historical volumes and charges
6. Current rate resolutions/ordinances that includes all water and sewer fees/charges
7. Debt Information:
a. Current schedules of annual debt service for each outstanding debt, including any revenue bonds, USDA loans, capital leases, bank loans, etc.
b. Copy of official statements for any revenue bonds and agreements (including amendments) for all other loans/leases
8. Current forecast of new developments by type and size from planning or other dept.
Section B: Billing Data
1. # of active customers by meter size for water and sewer as of September 30 for 2018 - 2023
2. 5-year history (FY 18 – 23) of gallons billed and treated for water and sewer by month, plus year-todate data for FY 24
3. Detailed consumption data for FY 2023 in electronic format. Data should include:
Fields for Account information:
a) Unique account number or I.D.
b) Geographic/service area code (inside v. outside City) c) User/Class code (i.e. Single-Family, Multi-Family, Commercial, Wholesale, etc.) d) Meter Information: Number of meters, Size of each meter, Services to each meter (i.e. Water, Sewer, Irrigation, Fire Protection, etc.)
e) Number of dwelling units (if available in billing system) Fields for Monthly Bills:
a) Unique account number or I.D.
b) Year & Month of issue
c) Volume/Consumption billed for each meter
d) Monthly charges for services provided on each meter separated by charge type
4. Documentation identifying all geographic/service area, user/class, rate, and meter size codes to understand values in these fields contained in item #3.
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.H.
To: Honorable Mayor and City Council Members
From: Lisette Free, Finance Director
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:
Fiscal Year 2023-24 Second Quarter Budget Performance Report with proposed MidYear Amendments to the Annual Operating Budget RECOMMENDATION:
Receive and file the FY 2023-24 Second Quarter Budget Performance Report; and approve Resolution 2024-07 appropriating various mid-year amendments to the Fiscal Year 2023-24 annual operating budget and authorizing changes in appropriations and revenues thereto.
SUMMARY:
One of the Department’s annual goals is to timely inform the City Council on actual operating budget results relative to the annual adopted budget. This report provides information on actual results through December 31, 2023, compared to the adopted budget (Attachment A). Any significant variances identified as a result of reviewing/analyzing the budget performance through December 31, 2023 have been recommended as a mid-year budget amendment.
Staff has completed a mid-year review of the annual operating budget in order to determine appropriate adjustments based on new and/or updated information that was not available when the proposed budget was approved in June 21, 2023. As a result of the mid-year review of the operating budget, staff is recommending that the City Council approve the changes as outlined in Attachment B.
BACKGROUND:
As part of revenue and expenditure reporting and monitoring program, staff provides the City Council with quarterly budget performance reports. Attachment A provides information as of the second quarter ending December 31, 2023.
As a result of timing differences, the first six months of actual recorded data may not serve as accurate prediction of what the year-end numbers are likely to be at June 30, 2024. For example, traditionally the majority of property taxes, sales taxes and franchise fees are received during the second half of the fiscal year. With this in mind, these numbers have been analyzed in conjunction with other historic and currently available data through the first week in February in order to identify material variances with the adopted budget. Attachment A provides a summary of revenues and expenditures for each operating fund through December 31, 2023.
As a result of the mid-year review of the operating budget, staff is recommending that the City Council approve the following changes as outlined in Attachment B. Increase total projected General Fund revenues by $314,776 Increase total projected General Fund expenditures by $13,700 Increase total projected Gas Tax revenues by $1,303
Decrease total projected SB-1 Road and Maintenance and Rehabilitation revenues by $7,729
Increase total projected Supplemental Law revenues and expenditures by $86,159
Appropriate revenues and expenditures for the Local Early Action Planning (LEAP) grant by $69,668.
General Fund Executive Summary
Total projected General Fund revenues are estimated to increase by $314,776 mainly due to an increase investment earnings. Total projected General Fund expenditures are estimated to increase by $13,700 due to the addition of six-months' worth of landscaping maintenance services for the The Barn. Overall, the estimated fund balance is expected to increase by $301,076.
General Fund Revenues
Including the effects of timing differences, the following variances have been identified between adopted budget and actual results through January 31, 2024. These variances are being incorporated as part of the mid-year budget amendments. Property Tax: Property tax revenues are estimated based on the assessed value of taxable real property in the City. The City's assessed value information was made available by the County in October of 2023 after the budget was adopted. The low percentage of property tax revenue received as of December 31, 2023, is due to the uneven distribution of property tax receipts during the fiscal year. The bulk of property tax revenues are received in the months of January and May of each year. Based on actual tax receipts to date, it is anticipated that total receipts for the fiscal year will be higher than the current budget by $134,263 by year-end due to increase in residual tax increment. Sales Tax: Sales tax is a major component of General Fund revenues. At the beginning of the fiscal year, total sales tax revenues was estimated at $11,246,200. Through the month of November 2023, actual Sales Tax receipts totaled $4,187,947; based on that, it is anticipated that total receipts for the fiscal year will be lower than the current budget by $800,127. HDL, the City's sales tax
consultant is currently in the process of projecting sales tax revenues and expects sales tax to remain flat.
Other Taxes: The other taxes category includes public safety sales tax, business license tax, property transfer tax, transient occupancy tax and satellite wagering tax. Total revenue for this category is tracking lower than anticipated due to lower property transfer tax. Based on actual receipts to date, it is anticipated that total receipts for the fiscal year will be lower than the current budget by $195,690 due primarily to the decrease in property transfer tax.
Franchise Fees: A significant amount of the revenues in this category are from electric and gas franchise fees which are received once a year. The City receives payment for electric and gas franchise fees usually in April of the fiscal year.
Refuse franchise revenues are received monthly while cable television franchises are received quarterly. Overall revenue projections for this category are expected to be slightly lower than the adopted budget by $87,943. Motor Vehicle In-Lieu Fees (MVLF): Cities and counties receive additional transfers of property tax revenues in lieu of VLF. Annually, half of the first installment of the replacement property tax is received during the first week of February 2024. Based on the amount of the first installment receipt, MVLF actual receipts are expected to be higher than budget by $141,702 due to growth in assessed valuation.
Intergovernmental: Intergovernmental revenue includes revenues from other government sources such as abatement revenues or state cost reimbursements.
There are no changes recommended as part of the mid-year review. Fines and Penalties: This revenue category includes vehicle code violation fines, parking citations and abandoned vehicle impound fees. Based on actual receipts, this revenue category is anticipated to be slightly less than budget by $48,430 due to decreased municipal code violation revenues and vehicle impound fees.
Investment Earnings and Lease Income: This revenue category includes investment income earnings and lease income from communication sites and Silverlakes' leases. Based on actual receipts, revenues are anticipated to be higher than budget by $965,000 due to interest earnings as a result of higher interest rates.
Community Development Fees: Community development fees consist of planning, building and safety, and engineering fees. Building permit activity on major projects anticipated for fiscal year 2023-24 has slowed down. While the major projects were submitted for plan checks as reflected by plan check revenues, it appears that developers are not moving forward at this time with building permit issuance. Despite the slow down, revenues are anticipated to be slightly higher than budget by $80,000 due to plan check fees.
Community Services: This category includes recreation activities fees, facilities rentals, Youth, Sports, & Family Services and revenues related to special events.
There are no changes recommended as part of the mid-year review. Other Revenues: This revenue category includes receipt from dog license, Emergency Medical Subscription (EMS), business license renewal and processing fees, penalties, refuse billing and collection, fire inspection fees, etc.
Based on actual revenue received, slightly higher receipts are anticipated by $126,000 due to miscellaneous revenues, electric vehicle charges, Animal Control donations, and merchandise sales.
Overhead Cost Allocation Reimbursements: This category includes transfer from other funds for reimbursement of administrative overhead. There are no changes recommended as part of the mid-year review.
General Fund Expenditures
The following variance has been identified between adopted budget and actual results through January 31, 2024. This variance is being incorporated as part of the mid-year budget amendments. No other adjustments to General Fund expenditure budgets are recommended at this time.
Facilities and Maintenance: Expenditures in this Department are for the Facilities and Park Maintenance costs. The budget is recommended to be increased by $13,700 for six months of landscaping maintenance services for The Barn.
Overall the General Fund recommended adjustments will result in a net increase to the estimated fund balance amount by $387,235 based on the mid-year budget review (Attachment C).
Measure R Fund
The second quarter budget to actual budget performance report for Measure R Fund was scheduled to reviewed by the Measure R Citizens’ Oversight Committee (COC) on January 17, 2024 (see Attachment D). However, due to no quorum, no action was taken and will be presented at their next scheduled meeting.
Measure R Revenues
As part of this review, transactions and use tax revenue has also been revised based on the amount received year-to-date and the estimated amount yet to be received for the remainder of the FY 2023-24. At the beginning of the fiscal year, total Measure R revenues was estimated at $8,463,000. When the budget was developed in June, there were economic concerns, such as inflation, that consumer spending could slow down causing key revenues such as Measure R transactions and use tax to decline. Through the month of October 2023, actual Measure R Transactions and Use Tax receipts totaled $2,656,944. Based on actual receipts through October 2023, staff anticipates Measure R tax revenues to be slightly less than budget. However, there are no changes recommended as result of this mid-year budget review.
Measure R Expenditures
Staff has reviewed the status of the projects for FY 2023-24 Measure R expenditures and has no proposed expenditure adjustments. The estimated available fund balance as of June 30, 2024 is $3,126,431.
Water and Sewer Funds Revenues and Expenses
A review of Water Fund actual revenues through January 2024, indicates that total revenues are tracking within the original budget estimates. Water revenue trends tend to be at their highest in the fall months due to hotter weather while revenue trends decrease in the spring months. Staff is recommending an increase in expenses by $321,644 for the State Water Resources Control Board administrative civil liability.
Sewer Fund revenues which primarily consists of fixed charges were also reviewed through January 2024 and determined to be tracking within the original budget estimates. Similarly, expenditures are tracking in line with the budget.
Other City Funds
This second quarter report also provides summary information on CDBG, Gas Tax, NPDES and Miscellaneous Grant Funds. NPDES expenditures are tracking to budget.
NPDES revenues have not been received as of December 2023 due to the timing of property tax payments from the County.
Over the last few years, Gas Tax Fund and SB1 Road and Maintenance Rehabilitation Fund has been delayed with the majority of the receipts received in the second half of the fiscal year. In late January, the City received revised gas tax revenue estimates from the State indicating that projected receipts will be slightly less than the adopted budget. Staff is recommending revenues increase by $1,303 and decrease by $7,729, respectively, due to the state's revision.
Grants
The City continues to apply for grants and pursue funding opportunities to enhance the City's programs and services. Staff is recommending an increase in revenues and appropriations for the following grants:
$86,159 Supplemental Law Enforcement Grant due to population growth to account for funds used for front line law enforcement services. $69,668 - Local Early Action Planning grant from the State of California Department of Housing and Community Development.
Landscape Maintenance Districts
Attachment A (starting on page 3) provides a budget to actual comparison of each Landscape Maintenance District’s revenues and expenditures through December 31, 2023.
As of December 31, 2023, no revenues have been received for any of the districts. The first installment of the assessments was received during the last week of January 2024.
Based on the amounts received for the first installment for each of the districts, staff believes that budgeted revenue numbers would be achieved by the end of the fiscal year. Actual expenditure amounts shown for each district represent costs that have been paid through December 31, 2023. These costs are typically lower than actual
costs incurred due to the time lag between when services are provided by contractors and the time their invoices are submitted and paid.
FISCAL IMPACT:
Attachment A is informational and provides a summary of the 2nd Quarterly Budget Performance Report. Attachment B provides a summary of proposed budget amendments while Attachment C provides a recapitulation of the impact of the recommended changes on the estimated fund balance of the General Fund.
Attachment D provides COC's 2nd Quarterly Budget Performance Report.
RELATIONSHIP TO STRATEGIC PLAN:
This item is consistent with Strategic Direction #3. Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Attachment A
Attachment B
Attachment C
Attachment D
Reso Mid Year-2.21.24 - 2024-07
Attachment A Page 1
City of Norco
General Fund Budget to Actual
Second Quarter Budget Performance Ending December 31, 2023 Amended
Adopted Budget 12/31/2023 Remaining %
General Fund Budget as of 12/31/23 Actual Budget Achieved
REVENUES
Property Taxes $ 2,644,500 $ 2,644,500 $ 597,719 $ 2,046,781 23% Sales Taxes 11,246,200 11,246,200 3,463,226 7,782,974 31% Motor Vehicle License Fees 3,467,200 3,467,200 - 3,467,200 0% Other Taxes 2,370,000 2,370,000 865,173 1,504,827 37%
Franchise Fees 2,236,300 2,236,300 661,078 1,575,222 30% Intergovernmental 51,500 51,500 145 51,355 0%
Fines and Penalties 242,200 242,200 91,010 151,190 38%
Interest/Lease Income 1,285,300 1,285,300 1,472,345 (187,045) 115% Community Development Fees 1,351,500 1,351,500 817,252 534,248 60% Community Services/Recreation 903,200 903,200 445,023 458,177 49% Other Revenues 1,436,000 1,439,928 1,140,525 299,403 79% Administrative Overhead/Operating Transfers 1,575,695 1,575,695 790,567 785,128 50% Total Revenues $ 28,809,595 $ 28,813,523 $ 10,344,062 $ 18,469,461 36%
EXPENDITURES
Sheriff $ 7,983,200 $ 7,983,200 $ 1,798,646 $ 6,184,554 23% Citizens on Patrol 18,100 18,100 4,475 13,625 25%
Crossing Guards 72,000 72,000 16,505 55,495 23%
Total Sheriff Protection 8,073,300 8,073,300 1,819,626 6,253,674 23% Fire Suppression & EMS (CalFire) 5,518,600 5,518,600 40,121 5,478,479 1% Norco Animal Rescue Team 20,500 20,500 7,784 12,716 38% Total Fire 5,539,100 5,539,100 47,906 5,491,194 1%
Recreation Services 1,017,373 1,017,373 468,103 549,270 46% Special Events 223,696 223,696 99,859 123,837 45%
Youth, Sports & Family Services 582,000 582,000 220,508 361,492 38% Senior Citizens 283,200 283,200 93,336 189,864 33%
Senior-RCTC 44,532 44,532 20,463 24,069 46%
Total Community Services 2,150,801 2,150,801 902,270 1,248,531 42% Animal Services 976,900 976,900 450,173 526,727 46%
Non-Departmental 4,530,732 4,635,731 2,617,824 2,017,907 58% City Clerk 609,300 609,300 218,771 390,529 36%
City Manager 413,500 413,500 208,584 204,916 50%
Communications 364,834 364,834 147,345 217,489 40%
Human Resources 254,400 254,400 115,188 139,212 45%
Economic Development 60,000 60,000 57,876 2,124 96%
Fiscal & Support Services 807,500 807,500 405,740 401,760 50% Total Admin, Econ. Dev & Finance 2,509,534 2,509,534 1,153,505 1,356,029 46% City Council 122,300 122,300 40,593 81,707 33%
City Attorney 250,000 250,000 103,033 146,967 41%
Total City Council & City Attorney 372,300 372,300 143,626 228,674 39% Engineering 692,768 692,768 198,324 494,444 29%
Inspection 40,000 40,000 11,135 28,865 28%
Parkway Maintenance 363,000 363,000 181,870 181,130 50% Total Public Works & Engineering 1,095,768 1,095,768 391,329 704,439 36% Code Enforcement 491,908 491,908 147,688 344,220 30%
Building & Safety 681,700 681,700 267,866 413,834 39%
Planning 2,350,162 2,350,162 603,375 1,746,787 26%
Total Community Development 3,523,770 3,523,770 1,018,929 2,504,841 29% Park Maintenance 1,580,588 1,629,488 659,425 970,063 42% Ingalls Event Center 1,256,075 1,256,075 811,639 444,436 65% Facilities Maintenance 1,204,400 1,204,400 344,866 859,534 29% Total Facilities and Maintenance 4,041,063 4,089,963 1,815,931 2,274,032 45% Total Expenditures $ 32,813,268 $ 32,967,167 $ 10,361,117 $ 22,606,050 32% Revenues Over (Under) Expenditures $ (4,003,673) $ (4,153,644) $ (17,055) $ (4,136,589)
Attachment A Page 2
City of Norco
Schedule of Other Funds Revenues & Expenditures
Second Quarter Budget Performance Ending December 31, 2023 Amended 12/31/23 %
Fund Description Budget Actual Achieved
WATER FUND
Revenues $ 13,015,800 $ 5,659,704 43%
Expenditures 13,508,036 5,474,397 41%
Revenues Over (Under) Expenditures $ (492,236) $ 185,306
SEWER FUND
Revenues $ 7,710,312 $ 3,349,339 43%
Expenditures 10,175,276 3,502,788 34%
Revenues Over (Under) Expenditures $ (2,464,964) $ (153,448)
GAS TAX
Revenues $ 729,400 $ 267,563 37%
Expenditures 947,400 300,669 32%
Revenues Over (Under) Expenditures $ (218,000) $ (33,106)
NPDES FUND
Revenues $ 227,000 $ - 0%
Expenditures 253,600 95,309 38%
Revenues Over (Under) Expenditures $ (26,600) $ (95,309) CDBG
Revenues $ 87,000 $ (934) -1%
Expenditures 87,000 12,500 14%
Revenues Over (Under) Expenditures $ - $ (13,434)
MISCELLANEOUS GRANTS
Revenues $ 2,132,751 $ 117,595 6%
Expenditures 2,132,751 118,097 6%
Revenues Over (Under) Expenditures $ - $ (502)
SUPPLEMENTAL LAW ENFORCEMENT
Revenues $ 100,000 $ 24,999 25%
Expenditures 100,000 24,999 25%
Revenues Over (Under) Expenditures $ - $ -
Attachment A Page 3
City of Norco
Schedule of Landscape Maintenance Districts Revenues & Expenditures Second Quarter Budget Performance Ending December 31, 2023 Amended 12/31/23 %
Fund Description Budget Actual Achieved
LMD #1
Revenues $ 12,204 $ (154) -1%
Expenditures 14,727 6,509 44%
Revenues Over (Under) Expenditures $ (2,523) $ (6,663)
LMD #2
Revenues $ 183,012 $ (1,065) -1%
Expenditures 199,696 76,666 38%
Revenues Over (Under) Expenditures $ (16,684) $ (77,731) LMD #3
Revenues $ 102,634 $ (451) 0%
Expenditures 122,831 47,344 39%
Revenues Over (Under) Expenditures $ (20,197) $ (47,795) LMD #4
Revenues $ 516,945 $ 3,596 1%
Expenditures 609,598 210,722 35%
Revenues Over (Under) Expenditures $ (92,653) $ (207,126) LMD #5
Revenues $ 68,091 $ 1,548 2%
Expenditures 86,383 26,347 30%
Revenues Over (Under) Expenditures $ (18,292) $ (24,799)
Attachment B - Page 1 of 2
GENERAL FUND REVENUE CATEGORIES
Budget
Amount
Mid-Year
Budget
Estimate
Proposed
Adjustment Comments
Property Tax $ 2,644,500 $ 2,778,763 $ 134,263 Slight increase related to property tax increment Sales Tax 11,246,200 10,446,073 (800,127) Decrease based on current actuals Other Taxes 2,370,000 2,174,310 (195,690) Decrease based on current property transfer taxes Franchise Fees 2,236,300 2,148,357 (87,943) Decrease based on current refuse franchise revenues Motor Vehicle in Lieu Tax - VLF 3,467,200 3,608,902 141,702 Increase based on state reimbursement claims Intergovernmental 51,500 51,500 -
Fines and Penalties 242,200 193,770 (48,430) Slight decrease based on vehicle code and parking fines Investment Earnings and Lease Income 1,285,300 2,250,300 965,000 Increase based on actual interest earnings Community Development Fees 1,351,500 1,431,500 80,000 Increase based on actual plan check and site plan fees Community Services 903,200 903,200 -
Other Revenues 1,436,000 1,562,000 126,000
Increase based on actual miscellaneous revenues, electric vehicle charges, Animal Control donation, merchandise sales
Overhead and Transfers 1,579,623 1,579,623 -
Total Revenues $ 28,813,523 $ 29,128,299 $ 314,776
GENERAL FUND EXPENDITURES
Budget
Amount
Mid-Year
Budget
Estimate
Proposed
Adjustment Comments
Administration $ 1,702,034 $ 1,702,034 $ -
Community Development 3,523,770 3,523,770 -
Community Services 3,127,701 3,127,701 -
Facilities and Maintenance 4,089,963 4,103,663 13,700 Increase for six months landscape maintenance for The Barn Fire and Emergency Medical Services 5,539,100 5,452,941 (86,159) Reallocation to the Supplemental Law grant Fiscal and Support Services 807,500 807,500 -
Legislative 372,300 372,300 -
Non-Departmental 4,635,731 4,635,731 -
Public Works 1,095,768 1,095,768 -
Sheriff 8,073,300 8,073,300 -
Total Expenditures $ 32,967,167 $ 32,894,708 $ (72,459)
GENERAL FUND SUMMARY
Budget
Amount
Mid-Year
Budget
Estimate
Proposed
Adjustment Comments
Total General Fund Revenues $ 28,813,523 $ 29,128,299 $ 314,776 Projected revenues for FY 2023-24 increased by $314,776 Total General Fund Expenditures 32,967,167 32,894,708 (72,459) Projected expenditures for FY 2023-24 decreased by $72,459 Total Revenues Over (Under) Expenditures $ (4,153,644) $ (3,766,409) $ 387,235 Estimated General Fund Balance for FY 2023-24 increased by $387,235 City of Norco
FY 2023-24 Mid-Year Budget Amendments Schedule
Attachment B - Page 2 of 2
City of Norco
FY 2023-24 Mid-Year Budget Amendments Schedule
WATER FUND EXPENSES
Budget
Amount
Mid-Year
Budget
Estimate
Proposed
Adjustment Comments
Total Water Fund Expenses $ 13,474,454 13,796,098 $ 321,644 State Water Resources Control Board administrative civil liability
GAS TAX FUND REVENUE CATEGORIES
Budget
Amount
Mid-Year
Budget
Estimate
Proposed
Adjustment Comments
2103 Apportionment $ 247,000 $ 234,694 $ (12,306) Based on State revision - recovery in fuel consumption and rate adjustments 2105 Apportionment 167,300 162,286 (5,014) Based on State revision - recovery in fuel consumption and rate adjustments 2106 Apportionment 108,300 105,861 (2,439) Based on State revision - recovery in fuel consumption and rate adjustments 2107 Apportionment 200,600 221,662 21,062 Based on State revision - recovery in fuel consumption and rate adjustments Total Revenues $ 723,200 $ 724,503 $ 1,303
SB-1 ROAD & MAINTENANCE
REHABILIATION FUND REVENUE
CATEGORIES
Budget
Amount
Mid-Year
Budget
Estimate
Proposed
Adjustment Comments
SB-1 Road Maintenance and Rehabilitation
Account $ 645,990 $ 638,261 $ (7,729) Based on State revision - lower gas tax receipts
SUPPLEMENTAL LAW REVENUE
CATEGORIES
Budget
Amount
Mid-Year
Budget
Estimate
Proposed
Adjustment Comments
Supplemental Law Revenue $ 100,000 $ 186,159 $ 86,159 Based on State revision - population growth GRANTS
Budget
Amount
Mid-Year
Budget
Estimate
Proposed
Adjustment Comments
LEAP Grant Revenues and Expenses $ - $ 69,668 $ 69,668 Grant extension approved to fund LEAP grant
Attachment C - Page 1 of 1
City of Norco
General Fund - Estimated Fund Balance
As of June 30, 2024
Description
Audited Fund Balance as of June 30, 2023 $ 34,902,164
Total Estimated FY 2023 - 24 Revenues - Adopted Budget $ 28,813,523 Total Estimated FY 2023 - 24 Expenditures - Adopted Budget (32,967,167) Total Estimated FY 2023 - 24 Estimated Revenues Over (Under) Expenditures (4,153,644) Total Estimated FY 2023 - 24 Revenue Adjustments - Mid-Year $ 314,776 Total Estimated FY 2023 - 24 Expenditure Adjustments - Mid-Year 72,459 Total Estimated FY 2023 - 24 Estimated Revenues Over (Under) Expenditures 387,235 Total General Fund Estimated Fund Balance as of June 30, 2024 $ 31,135,755 Total General Fund Balance $ 31,135,755
Reserves
Reserve for Emergency (25% of Budget) (8,223,677)
Reserve for Local Emergency and Natural Disasters (1,000,000) Reserve for Economic Development Reserve (3,799,849)
Designated for Special Projects* (1,540,942)
Estimated Uncommitted Fund Balance June 30, 2024 $ 16,571,287 * Attributed to Trust fund deposits, special projects and donations
Measure R Citizens' Oversight
Committee
STAFF REPORT
Date: January 17, 2024 Agenda Item:
2.B.
To: Honorable Chair and Committee Members
From: Lisette Free, Finance Director
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:
Fiscal Year 2023-24 Second Quarter Measure R Budget Performance Report and MidYear Budget Review and Amendments RECOMMENDATION:
Receive and File the Fiscal Year 2023-24 Second Quarter Measure R Budget Performance Report and Mid-Year Budget Adjustments.
SUMMARY:
One of the Department’s annual goals is to timely inform the Measure R Citizen’s Committee (“Committee”) on actual operating budget results relative to Measure R’s annual adopted budget. This report provides information on how actual results through December 31, 2023, compared to the adopted budget.
BACKGROUND:
The Measure R Transactions and Use Tax budget for Fiscal Year 2023-24 was approved by the Citizens' Oversight Committee (COC) on April 26, 2023. The COC approved budget was subsequently adopted by the City Council on June 21, 2023. As part of revenue and expenditure reporting and monitoring program, staff has provided the Committee budget with quarterly performance This reports. report provides information as of the second quarter ended December 31, 2023. As a result of timing differences, the first six months of actual recorded data may not serve as accurate prediction of what the year-end numbers are likely to be at June 30, 2024. With this in mind, these numbers have been analyzed in conjunction with other historic and currently available data in order to identify material variances with the adopted budget.
Attachment A provides a summary of revenues and expenditures for each of Measure R approved projects from July 1, 2023 through December 31, 2023. Attachment B provides through a summary of the project's budget performance from inception December 31, 2023.
Attachment D Page 1 of 4
Revenues:
As part of this review, transactions and use tax revenue has also been revised based on the amount received year-to-date and the estimated amount yet to be received for the remainder of the FY 2023-24. At the beginning of the fiscal year, total Measure R revenues was estimated at $8,463,000. When the budget was developed in June, there were economic concerns, such as inflation, that consumer spending could slow down causing key revenues such as Measure R transactions and use tax to decline. Through the month of October 2023, actual Measure R Transactions and Use Tax receipts totaled $2,656,944. Based on actual receipts through October 2023, staff anticipates Measure R tax revenues to be slightly less than budget. However, there are no changes recommended as result of this mid-year budget review.
Expenditures:
Staff has reviewed the status of the projects for FY 2023-24 Measure R expenditures and has no proposed expenditure adjustments.
FISCAL IMPACT:
Attachment A provides a summary of the revenues and expenditures for FY 2023-24 Measure R Transactions and Use Tax Budget. There are no proposed revenues and expenditure adjustments. The estimated available fund balance as of June 30, 2024 is $3,126,431.
RELATIONSHIP TO STRATEGIC PLAN:
This item is consistent with Strategic Directive No. 3 - Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
ATTACHMENT(S):
Attachment A
Attachment B
Attachment D Page 2 of 4
Attachment A
FY 2023-24
Approved
Budget
FY 2023-24
Amended
Budget
FY 2023-24
Actual as of
12/31/23
% of
Budget
Budget
Remaining
Revenues
Estimated Measure R Tax Revenues 8,463,000 $ 8,463,000 $ 2,656,944 $ 31% 5,806,056 $ Investment Earnings 175,000 175,000 121,483 69% 53,517
Total Revenues 8,638,000 $ 8,638,000 $ 2,778,427 $ 32% 5,859,573 $ Expenditures
Operating and Maintenance
Committee Stipends $ 1,400 $ 1,400 $ 29% 1,000 400 $
Professional Services 10,000 10,000 38% 6,225 3,775
Trail System Maintenance 600,000 600,000 172,429 29% 427,571 Subtotal 611,400 611,400 176,604 29% 434,796
Measure R Capital Projects
Facilities and Information Technology Improvements
Arena Structural Maintenance $ 30,000 $ 30,000 $ 100% 30,000 $ - City Hall Remodel - Efficiency Assessment 100,000 100,000 5,894 6% 94,106 City Hall/Sheriff Sub-Station Improvements 455,803 500,000 45,839 10% 409,964 Citywide ADA Improvement Project 150,000 150,000 57,466 38% 92,534 Citywide Facility Painting & Treating - 134,173 - 0% 134,173 Citywide Flooring - 249,354 - 0% 249,354
Facilities and Maintenance Office 300,000 300,000 - 0% 300,000 HAVC System Replacement 700,000 700,000 7,085 1% 692,915 Ingalls Event Center Wayfining Project 100,000 100,000 - 0% 100,000 Mobile Storage Unit - Special Events - 14,260 - 0% 14,260 Moreno Arena Bleacher Repairs 600,000 600,000 - 0% 600,000 Moreno Arena Emergency Bleacher Lighting 265,000 250,000 - 0% 265,000 The Hall Improvements 500,000 436,213 53,508 12% 382,705 NPDS - Back Lot & Trash Bins 200,000 200,000 - 0% 200,000 Pole Barn IT Infrastructure 100,000 199,327 170,447 86% 28,880 Pole Barns 600,000 955,058 814,503 85% 140,555
Security System Upgrade 50,000 95,002 - 0% 95,002
Senior Center Audio-Visual Upgrade 25,000 25,000 - 0% 25,000 Senior Center Emergency Generator 300,000 300,000 - 0% 300,000 Structured Connectivity System 35,000 35,000 - 0% 35,000 Land Improvements
Animal Control, Parmenter & Wayne Makin Parking Lots - 150,873 - 0% 150,873 Citywide Irrigation System Upgrades - 418,897 268,220 64% 150,677 Wayne Makin LED Lighting Upgrade 2,499,120 1,000,000 301,961 12% 2,197,159 Park Improvements
Citywide Park Enhancements 100,000 499,358 137,060 27% 362,298 Community Service & Facilities Assessment 50,000 225,355 1,080 0% 224,275 Pikes Peak Park ADA Synthetic Poured In Place Project 200,000 200,000 - 0% 200,000 Sundance Park Boundary Wall Restoration - 120,000 96,126 80% 23,874 Street Improvements
Citywide Traffic Signal Upgrade Project 100,000 100,000 - 0% 100,000 Fifth Street Pavement Project 100,000 100,000 826 1% 99,174 Fourth Street Pavement Project 1,300,000 1,300,000 9,062 1% 1,290,938 Hamner Ave Traffic Signal 90,000 90,000 - 0% 90,000
Miscellaneous Curb and Gutter Improvements 350,000 350,000 279,364 80% 70,636 River Drive Stabilization Project - 36,298 1,245 3% 35,053 Second St Pavement Project (Mountain to Pacific) 200,000 200,000 - 0% 200,000 Second Street Pavement Project - East Side 1,300,000 995,667 297,248 30% 698,419 Second Street Pavement Project - River to Pacific 150,000 150,000 1,112 1% 148,888 Slurry Seal Street Improvement 300,000 300,000 2,388 1% 297,613 Temescal Ave Pavement Project 1,924,700 1,924,700 486,722 25% 1,437,978 Third Street Pavement Project 998,615 500,000 874,753 88% 123,862 Third Street Pavement Project - Valley View to College 550,000 550,000 - 0% 550,000 Valley View Ave - Third St to Fourth St 1,522,197 1,600,000 - 0% 1,522,197 Trails Improvements
Silverlakes Causeway 250,000 250,451 0% 249,476 975
Trail Fencing Replacement for FY 23-24 600,000 600,000 - 0% 600,000 Subtotal $ 15,204,700 $ 18,925,721 $ 3,942,883 21% 14,982,838 $ Total Expenditures $ 15,816,100 $ 19,537,121 $ 4,119,487 21% 15,417,634 $ Revenues Over (Under) Expenditures $ (10,899,121)
Beginning Fund Balance July 1, 2023 14,025,552
Estimated Ending Fund Balance June 30, 2024 $ 3,126,431 Measure R Transactions and Use Tax
FY 2023-24 2nd Quarter Budget to Actual Report
Attachment D Page 3 of 4
Attachment B
Projects
Project
Number
Total
Approved
Budget
FY 2023-24
Approved
Budget
Expenditures
as of
06/30/23
FY 2023-24
Actual as of
12/31/23
Cumulative
Expenditures
as of 12/31/23
Budget
Remaining
Measure R Capital Projects
Facilities and Information Technology Improvements
Arena Structural Maintenance 54111.8 $ 30,000 $ 30,000 $ - $ 30,000 $ 30,000 $ - City Hall Remodel - Efficiency Assessment 54303.10 100,000 100,000 - 5,894 5,894 94,106 City Hall/Sheriff Sub-Station Improvements 54303.2 562,206 455,803 106,403 45,839 152,241 409,965 Citywide ADA Improvement Project 54300.2 150,000 150,000 - 57,466 57,466 92,534 Citywide Facility Painting & Treating 54303.8 250,000 134,173 115,827 - 115,827 134,173 Citywide Flooring 54303.9 250,000 249,354 646 - 646 249,354 Facilities and Maintenance Office 54303.11 300,000 300,000 - - - 300,000 HAVC System Replacement 54303.15 700,000 700,000 - 7,085 7,085 692,915 Ingalls Event Center Wayfining Project 54303.16 100,000 100,000 - - - 100,000 Mobile Storage Unit - Special Events 54303.13 30,000 14,260 15,740 - 15,740 14,260 Moreno Arena Bleacher Repairs 54111.9 600,000 600,000 - - - 600,000 Moreno Arena Emergency Bleacher Lighting 54111.5 265,000 265,000 - - - 265,000 The Hall Improvements 54303.6 553,810 436,213 117,597 53,508 171,105 382,705 NPDS - Back Lot & Trash Bins 4414.3 200,000 200,000 - - - 200,000 Pole Barn IT Infrastructure 54111.6 200,000 199,327 673 170,447 171,121 28,879 Pole Barns 54410.1 4,247,190 955,058 3,292,132 814,503 4,106,635 140,555 Security System Upgrade 54303.12 110,000 95,002 14,999 - 14,999 95,001 Senior Center Audio-Visual Upgrade 54303.18 25,000 25,000 - - - 25,000 Senior Center Emergency Generator 54303.17 300,000 300,000 - - - 300,000 Structured Connectivity System 54303.19 35,000 35,000 - - - 35,000 Land Improvements
Animal Control, Parmenter & Wayne Makin Parking Lots 54111.2 301,557 150,873 150,684 - 150,684 150,873 Citywide Irrigation System Upgrades 54111.3 420,000 418,897 1,103 268,220 269,323 150,677 Wayne Makin LED Lighting Upgrade 54111.4 2,554,051 2,499,120 54,931 301,961 356,892 2,197,159 Park Improvements
Citywide Park Enhancements 54410.5 610,000 499,358 110,642 137,060 247,702 362,298 Community Service & Facilities Assessment 54303.14 225,355 225,355 - 1,080 1,080 224,275 Pikes Peak Park ADA Synthetic Poured In Place Project 4407.8 200,000 200,000 - - - 200,000 Sundance Park Boundary Wall Restoration 54410.6 120,000 120,000 - 96,126 96,126 23,874 Street Improvements
Citywide Traffic Signal Upgrade Project 54900.22 100,000 100,000 - - - 100,000 Fifth Street Pavement Project 54900.23 100,000 100,000 - 826 826 99,174 Fourth Street Pavement Project 54900.24 1,300,000 1,300,000 - 9,062 9,062 1,290,938 Hamner Ave Traffic Signal 4920.10 90,000 90,000 - - - 90,000 Miscellaneous Curb and Gutter Improvements 4925.6 350,000 350,000 - 279,364 279,364 70,636 River Drive Stabilization Project 54900.21 85,000 36,298 48,702 1,245 49,947 35,053 Second St Pavement Project (Mountain to Pacific) 4928.25 200,000 200,000 - - - 200,000 Second Street Pavement Project - East Side 54900.6 1,839,927 995,667 844,260 297,248 1,141,508 698,419 Second Street Pavement Project - River to Pacific 54900.25 150,000 150,000 - 1,112 1,112 148,888 Slurry Seal Street Improvement 4902.1 300,000 300,000 - 2,388 2,388 297,613 Temescal Ave Pavement Project 4928.37 1,924,700 1,924,700 - 486,722 486,722 1,437,978 Third Street Pavement Project 54900.8 1,050,000 998,615 51,385 874,753 926,137 123,863 Third Street Pavement Project - Valley View to College 54900.26 550,000 550,000 - - - 550,000 Valley View Ave - Third St to Fourth St 54900.1 1,669,359 1,522,197 147,161 - 147,161 1,522,198 Trails Improvements
Silverlakes Causeway 54600.1 257,668 250,451 7,218 975 8,193 249,476 Trail Fencing Replacement for FY 23-24 54600.7 600,000 600,000 - - - 600,000 Total Expenditures $ 24,005,823 $ 18,925,721 $ 5,080,103 $ 3,942,883 $ 9,022,986 $ 14,982,837 Measure R Transactions and Use Tax
FY 2023-24 2nd Quarter Project Life-to-Date Status
Attachment D Page 4 of 4
RESOLUTION NO. 2024-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO, CALIFORNIA, APPROVING VARIOUS MID-YEAR AMENDMENTS TO FISCAL YEAR 2023-2024
ANNUAL OPERATING BUDGET AND AUTHORIZING CHANGES IN APPROPRIATIONS
AND REVENUES THERETO
WHEREAS, the Fiscal Year 2023-2024 annual operating budget for the City of Norco, California was adopted by the City Council on June 21, 2023; and
WHEREAS, certain revenue items listed and attached hereto have been revised to reflect estimated increases/decreases in the adopted budget (Attachment B); and WHEREAS, certain expenditure/expense items listed and attached hereto have been revised to reflect estimated increases/decreases in the adopted budget (Attachment B); and WHEREAS, these revenue and expenditure/expense changes are necessary to accurately reflect the City's estimated expenditure and revenue budget for Fiscal Year 2023-2024; and WHEREAS, the estimated year-end fund balance has been revised to include the mid-year adjustments to the budget, and is attached hereto (Attachment C); and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Norco, California, approved the budget changes listed on Attachment B.
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on February 21, 2024.
Kevin Bash, Mayor
City of Norco
ATTEST:
Dana Roa, CMC, City Clerk
City of Norco
Resolution No. 2024-07, Approve Various Mid-Year Amendments FY 2023-2024
February 21, 2024
I, DANA ROA, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was introduced and adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on February 21, 2024, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal City of Norco, California, on February 21, 2024.
Dana Roa, CMC, City Clerk
City of Norco, California
Attachments:
Attachment B: FY 2023-2024 Mid-Year Budget Amendments Schedule Attachment C: Estimated Fund Balance for June 30, 2024
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.I.
To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:
Consideration of Resolution 2024-05 to Accept Donation from the Norco Horseweek Committee
RECOMMENDATION:
Adopt Resolution No. 2024-05 - A Resolution of the City Council of the City of Norco, California, accepting Norco Horseweek Committee's Donation of 3 E-Z-Go Golfcarts and 3 John Deer Gators for use at the Ingalls Event Center.
SUMMARY:
Donation of 3 E-Z-GO Golfcarts and 3 John Deere Gator Utility Vehicles for the Ingalls Event Center. The value of the golf carts and utility vehicles is $117,300. The Norco Horseweek Committee's generous donation will not only benefit Norco's rodeo committees but City events and operations at the Ingalls Event Center for many years to come.
BACKGROUND:
Norco Horseweek is a non-profit organization dedicated to bringing the community together by celebrating and maintaining the rural lifestyle that Norco cherishes. The organization also donates profits to the Norco Animal Shelter, recreational programming, and to the Rose M. Eldridge Senior Center. The Norco Horseweek Committee (NHWC) is comprised of local volunteers who have demonstrated a successful model that promotes the City’s image and sense of place. Norco Horseweek was originally developed to provide low-cost activities for children, adults, and equine participants during the Easter holidays. These events have provided wholesome family entertainment to the residents of Norco for over fifty years. Last year, the City Council approved a 5-year contract extension with the NHWC and will continue to be a valued partner for many years to come.
In accordance with the Donations Acceptance Policy and Procedures adopted on December 6, 2023, donations of cash or real goods valued at $25,000 or greater may be accepted by the City Council. The procedures require that staff confirm that the City has relevant and adequate resources to administer such donations, that the donation is in the best interest of the City, and that the donation is consistent with applicable City laws and policies. In addition, the policy is to ensure that the City appropriately acknowledges the generosity of the donor.
Staff has evaluated the donation by the Norco Horseweek Committee and found that the donation meets all requirements set forth in the donation policy. These new vehicles will be under a two-year manufacture warranty. With a new PT position filled this last year in Parks Division 733, we have a dedicated employee to oversee the maintenance of these vehicles. This generous donation is beneficial for our community and operations at the Ingalls Event Center.
If approved, the Ingalls Event Center will receive the following vehicles for use:
Quantity Year Make/Model Description Total Price
2 2023 E-Z-Go Express L6 6 Seater Golf
Cart $32,470
1 2023 E-Z-Go Express S4 4 Seater Golf
Cart $14,360
3 2024 John Deere Gator -
XUV855M S4 Utility Vehicle $70,470
FISCAL IMPACT:
Donated assets will be recorded at acquisition value.
RELATIONSHIP TO STRATEGIC PLAN:
The donation closely aligns with Strategic Direction 3, Economic Development and Financial Stability to assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Norco Horseweek Committee Donation
Resolution 24-05 Horseweek Donation
Norco Horseweek Committee Donation
Golf Carts and Utility Vehicles for the Ingalls Event Center February 21, 2024
(3) John Deere Gators – XUV855M S4 (Model Year 2024)
(2) E-Z-GO Express L6 - 6-Seater Golf Carts (Model Year 2023)
(1) E-Z-GO Express L4 - 4-Seater Golf Cart (Model Year 2023)
RESOLUTION NO. 2024-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, ACCEPTING NORCO HORSEWEEK COMMITTEE’S
DONATION OF 3 E-Z-GO GOLFCARTS AND 3 JOHN DEER GATORS
FOR USE AT THE INGALLS EVENT CENTER.
WHEREAS, On December 6, 2023, by Resolution No. 2023-72, the City Council of the City of Norco (“City”), State of California, adopted The Policies and Procedures for Accepting Donations on Behalf of the City; and
WHEREAS, the City of Norco is accustomed to receiving donations for general and specific purposes; and
WHEREAS, donations may be offered in the form of cash, real or personal property. Designated donations means those donations that the donor specifies for a particular City department, location, or purpose. Undesignated donations means those donations that are given to the City for an unspecified use; and WHEREAS, a donation is considered as any item of value that the City has accepted and for which the donor has not received and does not expect to receive any goods or services in return, other than possible recognition, as well as disposition of the donation in accordance with the donor’s wishes; and
WHEREAS, the Norco Horseweek Committee wishes to donate 3 E-Z-GO Golfcarts and 3 John Deere Gator Utility Vehicles for the Ingalls Event Center in the amount of $117,300; and
WHEREAS, The Norco Horseweek Committee's generous donation will not only benefit Norco's rodeo committees but City events and operations at the Ingalls Event Center for many years to come; and
NOW, THEREFORE, the City Council of the City of Norco, DOES HEREBY RESOLVE as follows:
1. The above recitals are all true and correct and by this reference made an operative part hereof.
2. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Norco at an adjourned regular meeting held on February 21, 2024.
Resolution No. 2024-05, Norco Horseweek Committee Donation
February 21, 2024
_____________________________
Mayor of the City of Norco, California
ATTEST:
________________________________
Dana Roa, City Clerk
City of Norco, California
I, DANA ROA, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California, at an adjourned regular meeting thereof held on February 21, 2024, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand affixed the official seal of the City of Norco, California, held on February 21, 2024. ________________________________
Dana Roa, City Clerk
City of Norco, California
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.J.
To: Honorable Mayor and City Council Members
From: Lisette Free, Finance Director
Prepared By: Julie Houser, Admin Analyst
Department: Finance
SUBJECT:
Approval to Declare Various City Assets as Surplus Property RECOMMENDATION:
Declare various City assets as surplus property and authorize the City Manager/Director of Finance to dispose of surplus assets through auction, donation to charitable organizations, or electronic recycling (e-cycle).
SUMMARY:
Staff has identified various obsolete pieces of equipment and other assets that are no longer needed for City operations. It is recommended that the City Council declare the assets as surplus and authorize staff to dispose of them through public auction, donation to charity or electronic re-cycling.
BACKGROUND:
In the course of business, the City purchases new equipment to replace obsolete items.
Other assets simply break down and cannot be repaired or maintained in a cost effective manner. These obsolete equipment/assets have served their useful lives and are either no longer in service or inadequate for City needs due to software upgrades, excessive maintenance cost and normal wear and tear.
FISCAL IMPACT:
Minimal revenues may be generated through this process and will be credited to the Fund that owns the asset.
RELATIONSHIP TO STRATEGIC PLAN:
Disposal of obsolete and surplus assets is consistent with Strategic Direction #3; Assure financial stability by identifying new revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):
Reso 2024-06 Surplus List
Surplus List CURRENT
RESOLUTION NO. 2024-06
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NORCO, CALIFORNIA, DECLARING ITEMS AS SURPLUS TO BE
AUCTION, SCRAPED OR AUTHORIZED FOR DONATION AS
DESCRIBED
WHEREAS, the City of Norco periodically reviews its assets and equipment that has lived its life expectancy, has discontinuance of use and or is declared inoperable or scrap for surplus; and
WHEREAS, the City of Norco has an assorted number of assets to be declared as surplus that no longer meet City’s standards, technical viability or use; and WHEREAS, the City of Norco has determined that the surplus assets have no useful repurposing and would have a better purpose for public auction or salvaged; and WHEREAS, the City has determined that some assets would have better use if classified as surplus property and made available for donation.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Norco, California, does hereby declare as surplus those items as described in Exhibit A, attached hereto and incorporated herein by this reference, and authorizes the City Manager to dispose said assets through public auction, scrap or donation.
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on February 21, 2024.
___________________________
Kevin Bash, Mayor
City of Norco, California
ATTEST:
__________________________
Dana Roa, CMC, City Clerk
City of Norco, California
Resolution No. 2024-06 – Declaring Items Surplus
February 21, 2024
I, Dana Roa, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was introduced and adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on February 21, 2024 by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on February 21, 2024. ________________________
Dana Roa, CMC, City Clerk
City of Norco, California
Exhibit A: List of surplus items
City of Norco Surplus List
Date: February 2024
Items:
Monitors Quantity
ViewSonic VA2246M-LED 26
ViewSonic VA2252SM 1
LG 32QN650 QHD IPS 1
Dell UltraSharp U-14H 24’ 1
Workstations Quantity
I5-4590 4
I5-6400 6
I5-7400 9
Dell Precision 1700 1
I5-8500 3
Lenovo 7360-CTO 1
Laptops Quantity
Hp ProBook 450 G4 1
Lenovo E15 2
Dell Latitude E5550 1
Panasonic Toughbook CF-54 1
Printers/Fax Quantity
HP Laser Jet 2300 1
HP OfficeJect Pro 8720 1
HP DesignJet T2300 plotter 1
Hp Laserjet 401n 1
Hp Laserjet M234sdw 1
Hp Laser M252dw 1
Servers Quantity
Hp ProLiant DL380 G7 1
IBM 7915-AC1 1
HP ProLiant DL320e Gen 8 2
City of Norco Surplus List
IBM 7945-AC1 x3650 M3 1
Unitrends Recovery 818S Server 1
Misc Quantity
Phones and Tablets 10+
RCA SelectVision VKT275 1
Sanyo DS20930 TV 1
TRENDnet IP252P Security Camera 1
Logitech Speakers 1
JVC XV-N33 DVD Player 1
Credit Card Machines 4
Cascade Unit @ Fire Station 57 1
Vehicle/Equipment Quantity
2022 Dodge Durango #704 1
2002 Ford Explorer #169 1
Champ Fork Lift #332 1
John Deere Skip Loader 1
2005 GMC Truck #367 1
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
3.K.
To: Honorable Mayor and City Council Members
From: Alma Robles, Community Development Director
Prepared By: Sophia Thompson, Deputy City Clerk
Department: Planning
SUBJECT:
Recap of Actions Taken by the Planning Commission at its Meeting Held on February 14, 2024
RECOMMENDATION:
Receive and file the recap of actions taken by the Planning Commission at its meeting held on February 14, 2024.
REVIEWED AND APPROVED BY:
ATTACHMENT(S):
Planning Commission - Feb 14 2024 - DRAFT Minutes
DRAFT - MINUTES
Planning Commission
Wednesday, February 14, 2024
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 7:00 PM
ROLL CALL Jeff Shyu, Chair
Fia Sullivan, Vice Chair
Danny Azevedo, Member
Patricia Hedges, Member
Tara Young, Member
Henry Langlois, Youth Commissioner
PLEDGE OF ALLEGIANCE Community Development Director Robles Community Development Director Robles read the Appeal Notice into the record.
APPEAL NOTICE: In the event that you disagree with the action taken by the Planning Commission in regards to your application, or with any condition for approval of the application which is not a specific requirement of the Norco Municipal Code, you are entitled to appeal such determination or conditions to the Norco City Council, provided that such appeal is filed with the Norco City Clerk within ten calendar days after the requirements for appeals, inclusive of payment of an appeal fee.
1. PUBLIC COMMENTS
There were no public comments at this time.
2. CONSENT CALENDAR
Approval of Consent Calendar as presented.
M/S HEDGES/YOUNG Approve Consent Calendar as presented. The Motion was carried by the following roll call vote:
AYES: SHYU, SULLIVAN, AZEVEDO, HEDGES, AND YOUNG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Planning Commission Minutes - February 14, 2024
YOUTH COMMISSIONER LANGLOIS: AYE
2.A. Approval of Planning Commission Regular Meeting Minutes Action: Approved the Planning Commission Meeting Minutes of December 13, 2023.
3. ITEM(S) PULLED FROM CONSENT CALENDAR
There were no items pulled from the Consent Calendar.
4. DISCUSSION / ACTION ITEM(S)
4.A
.
Site Plan 2023-12 (Sandoval): A request to construct a detached 1,000 squarefoot large vehicle parking garage at 4061 Quiet Hills Court, within the A-E (Agricultural Estate) Zone. (APN 130-281-005).
Associate Planner Woods-Diaz presented report on Site Plan 2023-12 (Sandoval).
Member hedges had a question.
Associate Planner Woods-Diaz answered question.
Chair Shyu invited the applicant to speak on the Site Plan.
Applicant politely declined.
Chair Shyu opened public comment.
There were no public comments.
Chair Shyu closed public comment.
Motion was made.
M/S AZEVEDO/SULLIVAN Planning staff recommends approval of Site Plan 2023-12 subject to the attached Conditions of Approval in Resolution 2024-01. The Motion was carried by the following roll call vote:
Planning Commission Minutes - February 14, 2024
AYES: SHYU, SULLIVAN, AZEVEDO, HEDGES, AND YOUNG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
YOUTH COMMISSIONER LANGLOIS: AYE
4.B
.
Site Plan 2023-21 (Shermak): A request to construct a detached 960 square-foot large vehicle parking garage at 1087 Fourth Street, within the A-1-20 (Agricultural, Low-Density) Zone. (APN 127-160-021).
Associate Planner Woods-Diaz presented report on Site Plan 20203-21 (Shermak).
Member Azevedo had concerns regarding the access gate in relation to the animal keeping area.
Associate Planner Woods-Diaz addressed concerns and agreed to have a condition added to specify that access to the parking garage shall be from Corona Ave only.
Vice Chair Sullivan had questions and concerns,
Associate Planner Woods-Diaz answered questions and concerns.
Member Hedges had concerns.
Associate Planner and Chair Shyu addressed concerns.
Chair Shyu requested that dimensions of the existing access gate be added to the Site Plan.
Associate Planner agreed to have the dimensions added.
Chair Shyu invited the applicant to speak on the Site Plan.
Applicant politely declined.
Chair Shyu opened public comment.
Planning Commission Minutes - February 14, 2024
There were no public comments.
Chair Shyu closed public comment.
Motion was made.
M/S HEDGES/AZEVEDO Planning staff recommends approval of Site Plan 2023-21 subject to the attached Conditions of Approval in Resolution 2024- 04 with a condition to access the garage from Corona Ave only and to add the dimensions of the existing access gate. The Motion was carried by the following roll call vote:
AYES: SHYU, SULLIVAN, AZEVEDO, HEDGES, AND YOUNG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
YOUTH COMMISSIONER LANGLOIS: AYE
5. PUBLIC HEARING(S)
5.A
.
Zone Code Amendment 2024-01 (City of Norco): A City initiated amendment to Title 18, Section 18.30.46 – Accessory Dwelling Units and Junior Accessory Dwelling Units, updating provisions related to Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) to comply with state ADU Law.
Community Development Director Robles presented report on Zone Code Amendment 2024-01: Amendment to Title 18 Section 18.30.46.
Chair Shyu had questions.
Deputy City Attorney Halfman and Community Development Director Robles answered questions.
Chair Shyu opened public comment.
There were no public comments.
Planning Commission Minutes - February 14, 2024
Chair Shyu closed public comment.
Motion was made.
M/S AZEVEDO/HEDGES That the Planning Commission adopt Resolution 2024-02, recommending approval of Zone Code Amendment 2024-01 to the City Council. The Motion was carried by the following roll call vote:
AYES: SHYU, SULLIVAN, AZEVEDO, HEDGES, AND YOUNG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
YOUTH COMMISSIONER LANGLOIS: AYE
5.B
.
Bluff Street Annexation #27, General Plan Amendment 2023-01, Zone Change 2023-01 (Pre-Zone) (City of Norco): A City-initiated proposal to annex approximately 56.82 acres of unincorporated territory north of Bluff Street and west of River Road to the City of Norco. This project includes a General Plan Amendment to establish land use designations of RA (Residential Agricultural) and WR (Water Related) for the properties to be annexed, and a Zone Change to pre-zone the properties with corresponding zones: A-1-20 (Agricultural Low Density 20,000 sq. ft.) and OS (Open Space). APNs: 121-030-004, -008, -009, - 010, -011, -012, -013, -014, - 016, 121-050-001, -003, -005, -031, -032, -034 and -035, 121-320-002,-003,-004,-005, -006, -007, -008, and -009.
Community Development Director Robles Presented Bluff Street Annexation #27 General Plan Amendment 2023-01, Zone Change 2023-01.
Member Hedges had questions and concerns.
Public Works Director Blais and Community Development Director Robles answered questions and addressed concerns.
Member Young had a question.
Community Development Director answered question.
Vice Chair Sullivan had questions and concerns.
Planning Commission Minutes - February 14, 2024
Community Development Director answered questions and addressed concerns.
Member Azevedo had questions and concerns.
Community Development Director and Public Works Director Blais answered questions and addressed concerns.
Chair Shyu had questions.
Public Works Director Blais answered questions.
Chair Shyu opened public comment.
The following members of the public spoke in opposition of the Bluff Street Annexation #27 General Plan Amendment 2023-01, Zone Change 2023-01.
Michael David, Joe Brown, Lynette Pasley, Lorraine Currie, Mitch Payton, Lelani Kroeker, Lura Staffanson, Martha Brown, Gleny Phillips, Miguel Nunez, Mary Roberts, Mark Brodersen, Roger Vanderlaan, and Roger and Suzanne Casipit.
Chair Shyu closed public comment.
All members of the Planning Commission thanked the public for coming to the meeting and speaking on the item.
Following discussion, motion was made.
M/S HEDGES/YOUNG Deny the Resolution 2024-06, recommending that the City Council initiate Annexation 27, approve General Plan Amendment 2023-01, and approve Zone Change 2023-01.The Motion was carried by the following roll call vote:
AYES: SHYU, SULLIVAN, AZEVEDO, HEDGES, AND YOUNG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
YOUTH COMMISSIONER LANGLOIS: AYE
5.C
.
Public Hearing: Zone Code Amendment 2024-02 (City of Norco): A City initiated amendment to Title 18, Chapter 18.13 - A-1 Agricultural Low Density Zone,
Planning Commission Minutes - February 14, 2024
adding Farmworker Housing as a permitted use, as required in the City’s certified Housing Element.
M/S HEDGES/AZEVEDO That the Planning Commission continue the public hearing for Zone Code Amendment 2024-02 to March 13, 2024, allowing staff time to complete the necessary research on farmworker housing for presentation to the Planning Commission. The Motion was carried by the following roll call vote:
AYES: SHYU, SULLIVAN, AZEVEDO, HEDGES, AND YOUNG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
YOUTH COMMISSIONER LANGLOIS: AYE
6. COMMISSION / STAFF COMMUNICATIONS
Deputy City Attorney Halfman, Community Development Director Robles and Chair Shyu clarified the process for the public following the motion made on item 5.B.
Bluff Street Annexation #27.
Vice Chair Sullivan requested to agendize a discussion on increasing the required size of Animal Keeping Areas.
Motion was made.
M/S SULLIVAN/HEDGES Agendize a discussion at a future meeting to increase the size requirements of Animal Keeping Areas. The Motion was carried by the following roll call vote:
AYES: SHYU, SULLIVAN, AZEVEDO, HEDGES, AND YOUNG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
YOUTH COMMISSIONER LANGLOIS: AYE
Planning Commission Minutes - February 14, 2024
7. ADJOURNMENT
Chair Shyu adjourned the meeting at 8:25 PM.
City Council
STAFF REPORT
Date: February 21, 2024 Agenda Item:
5.A.
To: Honorable Mayor and City Council Members
From: Lori Sassoon, City Manager
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:
Solid Waste and Recycling Collection Services Request for Proposal - Update RECOMMENDATION:
Receive the update regarding the current status of the request for proposals for Solid Waste and Recycling Collection Services Contract; no action at this meeting.
SUMMARY:
The City's franchise waste hauler contract expires June 30, 2024. The City has been actively working with R3 Consulting Group, Inc. to develop a request for proposal for new Solid Waste and Recycling Collection Services for the City of Norco. An RFP was issued in September 2023 and proposals were received in October 2023. The City created a subcommittee to review the proposals, conduct interviews as needed, and negotiate directly with a potential hauler for a new contract. This process has been conducted for several months and Council is being provided an update as to where the RFP process stands, and to receive public comment.
BACKGROUND:
The City's existing franchise waste hauler agreement will expire June 30, 2024. City Council directed staff to work with the City's consultant, R3 Consulting Group, Inc. (R3), to conduct a formal request for proposal (RFP) process to determine the next waste hauler to provide comprehensive and cost effective disposal and recycling services to meet Norco's residential and commercial needs. The RFP advertisement was released on September 7, 2023, with proposals due by October 20, 2023. At the meeting, a presentation will be provided that provides a summary of RFP activities to date and an outline of future steps remaining. This meeting will also provide an opportunity for the public to provide input and comment.
FISCAL IMPACT:
N/A
RELATIONSHIP TO STRATEGIC PLAN:
Reviewing the current status of RFP process for trash hauler services is consistent with Strategic Plan Goal No. 3 - Economic Development & Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.
REVIEWED AND APPROVED BY:
Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney