CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND CITY COUNCIL MEMBERS
FROM: DAWN NEVERS, ASST. COMMUNITY DEVELOPMENT DIRECTOR
WES ERVIN, PRINCIPAL PLANNER
RE: FIRST READING OF ZONING CODE AMENDMENT ZC22-02 RELATING
TO BINGO GAMES AND AMENDING OROVILLE MUNICIPAL CODE
SECTION 5.24.250 TO BE CONSISTENT WITH STATE REGULATIONS.
DATE: APRIL 5, 2022
SUMMARY
The City Council will consider approving an amendment to Section 5.24.250 of the Oroville Municipal Code consistent with State law relating to the operation of bingo games, to increase the amount of proceeds allowed for operating costs per month from $1,000 to $2,000.
DISCUSSION
The proposed amendment to the Oroville Municipal Code Section 5.24.250 is to revise the city municipal code to be consistent with State regulations relating to bingo charity fundraisers by charitable and nonprofit organizations and to allow more flexibility regarding the amount of proceeds used for operation expenses.
A comparison of the State and city regulations is provided below.
State Regulation:
State Penal Code, Section 326.5(k)(2), mandates that no more than 20% of bingo proceeds before the deduction of prizes or $2,000.00 a month, whichever is less, may be used for the rental of property, overhead costs, administrative expenses, security equipment, and security personnel.
City Regulation:
Current Oroville Municipal Code Section 5.24.250 has a “cap” of $1,000.00 a month” and reads as follows:
“No individual, corporation, partnership, or other legal entity except the organization authorized to conduct a bingo game shall hold a financial interest in the conduct of such bingo game. The profits of the bingo game shall be used only for charitable purposes. A portion of the proceeds, not to exceed 20% of the proceeds after the deduction for prizes, or $1,000.00 a month, whichever is less, may be used for rental of property, overhead, and administrative expenses”.
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Item 13.
A letter from the Feather River Senior Citizen’s Association (FRSCA) to the city dated December 1, 2021, requests a change to Section 5.24.250 to be consistent with State law. The FRSCA letter indicates “We take pride in the games we provide to anyone over the age of 18 three days a week” and “’We can do so much more if you authorize this change” (see letter, Attachment B).
The proposed zoning amendment would allow the FRSCA and other charitable and nonprofit organizations in the city to use more of their proceeds to operate bingo games and to have the same privileges as other similar organizations in the State.
FISCAL IMPACT
None
RECOMMENDATION
1. Conduct a Public Hearing on proposed Zoning Change 22-02.
2. Waive first reading and approve Ordinance No. 1864 - AN ORDINANCE OF THE OROVILLE CITY COUNCIL AMENDING SECTION 5.24.250 OF THE ZONING CODE OF
THE CITY OF OROVILLE CONSISTENT WITH STATE LAW RELATING TO THE
OPERATION OF BINGO GAMES TO INCREASE THE AMOUNT OF PROCEEDS ALLOWED PER MONTH FROM $1,000 TO $2,000 FOR OPERATING COSTS.
3. Adopt resolution 9043 –with zoning change ZC 22-02 amending section 5.24.250 of the Oroville municipal code relating to bingo games and allowing deduction of prizes of up to $2,000 per month for operating costs.
ATTACHMENTS
A. Ordinance with Amended Text of Section 5.24.250
B. Letter from the Feather River Senior Citizens Association C. Resolution No. 9043
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Item 13.
ORDINANCE NO __________
AN ORDINANCE OF THE OROVILLE CITY COUNCIL AMENDING SECTION 5.24.250 OF THE
ZONING CODE OF THE CITY OF OROVILLE CONSISTENT WITH STATE LAW RELATING
TO THE OPERATION OF BINGO GAMES TO INCREASE THE AMOUNT OF PROCEEDS ALLOWED PER MONTH FROM $1,000 TO $2,000 FOR OPERATING COSTS.
Section 5.24.250 of the Oroville Municipal Code is hereby amended as follows:
Section 5.24.250 - Limitation on financial interest and use of profit.
No individual, corporation, partnership, or other legal entity except the organization authorized to conduct a bingo game shall hold a financial interest in the conduct of such bingo game. The profits of the bingo game shall be used only for charitable purposes. A portion of the proceeds, not to exceed 20% of the proceeds after the deduction for prizes, or $1,000.00 $2,000.00 a month, whichever is less, may be used for rental of property, overhead, and administrative expenses.
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Item 13.
RESOLUTION NO. 9041?
A RESOLUTION OF THE OROVILLE CITY COUNCIL ADOPTING ZONING CHANGE ZC 22-02 AMENDING SECTION 5.24.250 OF THE OROVILLE MUNICIPAL CODE
RELATING TO BINGO GAMES AND ALLOWING DEDUCTION OF PRIZES OF UP TO $2,000 PER MONTH FOR OPERATING COSTS
WHEREAS, the City of Oroville staff recommends the amendment of Section
5.24.250 of the City of Oroville Municipal Code relating to the City’s regulations of bingo games and restrictions on the amount of profits used for rent and overhead costs, and; WHEREAS, the City Council finds that the operation of bingo fundraisers by charitable and nonprofit organizations within the city is an integral part of supporting local charities and for leisure time sought by residents of Oroville, and; WHEREAS, the Feather River Senior Citizen’s Association has submitted a letter to the City dated December 1, 2021, requesting the amendment to Section 5.24.250 for consistency with State regulations that allow a higher portion of proceeds toward operational costs which is a valid and reasonable request, and; WHEREAS, the California Penal Code Section 326.5, indicates, “A portion of the proceeds, not to exceed 20 percent before the deduction for prizes, or two thousand dollars ($2,000) per month, whichever is less, may be used for the rental of property and for overhead including the purchase of bingo equipment, administrative expenses, security equipment, and security personnel”, and the City Municipal Code Section
5.24.250 is more limiting at $1,000 per month.
WHEREAS, at a duly noticed public hearing, the City Council reviewed and approved the proposed action.
NOW, THEREFORE, BE IT RESOLVED BY THE OROVILLE CITY COUNCIL AS FOLLOWS:
SECTION 1. The City Council determines:
A. The proposed amendment of Section 5.24.250 is consistent with the General Plan; and
B. The proposed amendment of Section 5.24.250 will allow City nonprofit and charitable organizations more flexibility in meeting operating costs consistent the California Penal Code Section 326.5, Bingo games.
SECTION 2. City Council approves Zoning Change ZC22-02 to the Oroville Municipal Code as set forth in Attachment A.
*********
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PASSED AND ADOPTED by the City Council of the City of Oroville at a regular meeting on April 5, 2022, by the following vote:
AYES: Commissioner
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVE:
Jackie Glover, Assistant City Clerk Chuck Reynolds, Mayor 246
Item 13.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND COUNCIL MEMBERS
FROM: CHRIS TENNS, ACTING FIRE CHIEF
RE: ACCEPTANCE AND RECOGNITION OF CAL WATER ANNUAL
FIREFIGHTER GRANT PROGRAM
DATE: APRIL 5, 2022
SUMMARY
The Council may consider accepting the annual Cal Water Firefighter grant funds through Cal Water and to purchase extrication equipment with grant funds.
DISCUSSION
On November 26th, 2021, the Oroville Fire Department sought grant funding from Cal Water to purchase extrication equipment. In December, Cal Water announced that Oroville Fire was one of eight Fire Departments that was awarded $30,000 of $174,500 to purchase or fund equipment that will help protect life and property. The grant program is part of Cal Water’s commitment to supporting Fire Departments in its service areas.
The Fire Department continues to have a demand for vehicle extrication. The procurement of these updated, battery-operated extrication tools will allow our staff to perform rescue operations safely and efficiently at the scene of vehicle accidents and with downed aircrafts. The updated versions of the Holmatro equipment are battery operated, instead relying on the use of a gas operated powerplant, allowing for quicker deployment and with a tool that is half the weight. The battery-operated model of extrication is the direction that fire service is heading due to its efficiency and ease of use and will soon be the new industry standard.
FISCAL IMPACT
$5,022.48 from fund 131 Fire Suppression Impact Fee Fund, current balance is $325,203.
RECOMMENDATION
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Item 14.
Accept the grant funding from Cal Water and authorize the purchase of new extrication equipment not to exceed $35,022.48
ATTACHMENTS
Quote
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Item 14.
Western Extrication Specialists, Inc.
P.O. Box 1065
Simi Valley, CA 93062
+1 8056247475
http://www.holmatro-westx.com
Price Quote
ADDRESS
Oroville Fire Department
2055 Lincoln Strett
Oroville, Ca 95966 USA
SHIP TO
Oroville Fire Department
2055 Lincoln Strett
Oroville, Ca 95966 USA
PRICE QUOTE # 1779
DATE 10/23/2021
EXPIRATION DATE 06/30/2022
TECH/SALES REP.
Tony Martinez
DATE ARTICLE NUMBER DESCRIPTION QTY RATE AMOUNT
159.000.170 PCT11 COMBI-TOOL 2 12,205.00 24,410.00T
151.000.583 PBPA287 BATTERY 4 760.00 3,040.00T
151.000.742 PBCH2 BATTERY CHARGER
120VAC
2 603.00 1,206.00T
151.000.743 PMC2 MAINS POWER
CONNECTOR 120VAC
2 1,387.00 2,774.00T
3-2-V PCT50 VERTICAL MOUNT 1 300.00 300.00T
1-1-H PCT50 HORIZONTAL MOUNT 1 300.00 300.00T
The bracket prices will change once I am able to get a updated price for the PCT 11
SUBTOTAL 32,030.00
TAX 2,642.48
SHIPPING 350.00
TOTAL $35,022.48
Accepted By Accepted Date
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Item 14.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND CITY COUNCIL MEMBERS
FROM: RUTH WRIGHT, ASSISTANT CITY ADMINISTRATOR,
ADMINISTRATIVE SERVICES
RE: INVESTMENT MANAGEMENT SERVICES
DATE: APRIL 5, 2022
SUMMARY
The Council may consider an agreement for investment management services.
DISCUSSION
Staff is asking the Council to consider an investment management firm to manage and invest a portion of City funds.
Currently the City manages cash with an operating account keeping a minimum balance of 3 million. Any excess of cash is transferred to a pooled cash fund that is managed by the State of California – Local Agency Investment Fund or (LAIF). LAIF has been a solid low risk option for the City to earn a little interest on the cash balance that is not readily needed. The City transfers between these funds depending on cash flow needs. At February 28, 2022 the balances were, $5,742,543 in our operating account and $55,089,474 in our LAIF account.
These balances are reported monthly on our City’s website as required.
The only limitation in doing what we are doing is that the LAIF yield is very low. The risk is low but the current yield is approximately a quarter of 1% at .278%. It is possible to increase our yield by utilizing third party investment professionals. Chandler Asset Management has met with the City’s City Administrator, Treasurer and Assistant City Administrator of Administrative Services and is scheduled to give a Council presentation prior to this item on the agenda.
Staff believes that custody and management of cash is a very large responsibility and needs to be evaluated to maximize the manner in which we invest. Staff also checked references and got excellent feedback on this firm.
FISCAL IMPACT
Possible increase in the City’s yield on investments.
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RECOMMENDATION
Option A – keep things the way they are currently
Option B – Invest a portion of the cash held in LAIF with Chandler Asset Management, any amount between 10 to 25 million.
ATTACHMENTS
Chandler Asset Management Agreement
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Item 15.
1 INVESTMENT MANAGEMENT AGREEMENT
(Institutional Client, Non-ERISA)
City of Oroville (Client) hereby retains Chandler Asset Management, Inc. (Chandler) as Investment Adviser on the terms and conditions set forth herein.
1. Scope of Services. In compliance with all terms and conditions of this Agreement, Chandler will provide Client with the services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference.
2. Term. The term of this Agreement shall commence upon the execution of this Agreement and shall continue until this Agreement is terminated effective upon receipt of notice of termination in writing delivered by the terminating party.
3. Fees. Client shall compensate Chandler monthly an amount calculated on the average market value of Client's portfolio, including accrued interest, in accordance with the following schedule:
Assets Under Management Annual Investment Management Fee First $25 million 0.12 of 1% (12 basis points)
Next $25 million 0.09 of 1% (9 basis points)
Assets in excess of $50 million 0.06 of 1% (6 basis points) The fees expressed above do not include any custody fees that may be charged by Client's bank or other third party custodian.
Fees shall be prorated to the effective date of termination on the basis of actual days elapsed, and any unearned portion of prepaid fees shall be refunded. Client is not required to pay any start-up or closing fees; there are no penalty fees.
Fees shall be deducted monthly in arrears from Client’s custody account.
4. Client Representative. In its capacity as investment manager, Chandler shall receive all instructions, directions and other communications on Client's behalf respecting Client's account from ________________ (Representative). Chandler is hereby authorized to rely and act upon all such instructions, directions and communications from such Representative or any agent of such Representative.
5. Investment Policy. In investing and reinvesting Client’s assets, Chandler shall comply with Client’s Investment Policy, which is attached hereto as Exhibit B.
6. Authority of Chandler. Chandler is hereby granted full discretion to invest and reinvest all assets under its management in any type of security it deems appropriate, subject to the instructions given or guidelines set by Representative.
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2 7. Notices. All reports and other communications required hereunder to be in writing shall be delivered in person, or sent by first-class mail postage prepaid, by overnight courier, by confirmed facsimile with original to follow or by confirmed electronic mail with proof of receipt to the addresses set forth below. Either party to this Agreement may, by written notice given at any time, designate a different address for the receipt of reports and other communications due hereunder.
Chandler Asset Management
Attn: Nicole Dragoo
6225 Lusk Boulevard
San Diego, CA 92121
[email protected]
CLIENT
Attn:
Address:
City, ST ZIP
Email
8. Electronic Delivery. From time to time, Chandler may be required to deliver certain documents to Client such as account information, notices and required disclosures. Client hereby consents to Chandler’s use of electronic means, such as email, to make such delivery. This delivery may include notification of the availability of such document(s) on a website, and Client agrees that such notification will constitute “delivery”. Client further agrees to provide Chandler with Client’s email address(s) and to keep this information current at all times by promptly notifying Chandler of any change in email address(s).
Client email address(s):______________________________________________________________
9. Proxy Voting. Chandler will vote proxies on behalf of Client unless otherwise instructed. Chandler has adopted and implemented written policies and procedures and will provide Client with a description of the proxy voting procedures upon request. Chandler will provide information regarding how Clients’ proxies were voted upon request. To request proxy policies or other information, please contact us by mail at the address provided, by calling 800-317-4747 or by emailing your request to [email protected].
10. Custody of Securities and Funds. Chandler shall not have custody or possession of the funds or securities that Client has placed under its management. Client shall appoint a custodian to take and have possession of its assets. Client recognizes the importance of comparing statements received from the appointed custodian to statements received from Chandler. Client recognizes that the fees expressed above do not include fees Client will incur for custodial services.
11. Valuation. Chandler will value securities held in portfolios managed by Chandler no less than monthly. Securities or investments in the portfolio will be valued in a manner determined in good faith by Chandler to reflect fair market value.
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3 12. Investment Advice. Client recognizes that the opinions, recommendations and actions of Chandler will be based on information deemed by it to be reliable, but not guaranteed to or by it. Provided that Chandler acts in good faith, Client agrees that Chandler will not in any way be liable for any error in judgment or for any act or omission, except as may otherwise be provided for under the Federal Securities laws or other applicable laws.
13. Payment of Commissions. Chandler may place buy and sell orders with or through such brokers or dealers as it may select. It is the policy and practice of Chandler to strive for the best price and execution and for commission and discounts which are competitive in relation to the value of the transaction and which comply with Section 28(e) of the Securities and Exchange Act. Nevertheless, it is understood that Chandler may pay a commission on transactions in excess of the amount another broker or dealer may charge, and that Chandler makes no warranty or representation regarding commissions paid on transactions hereunder.
14. Other Clients. It is further understood that Chandler may be acting in a similar capacity for other institutional and individual clients, and that investments and reinvestments for Client's portfolio may differ from those made or recommended with respect to other accounts and clients even though the investment objectives may be the same or similar. Accordingly, it is agreed that Chandler will have no obligation to purchase or sell for Client's account any securities which it may purchase or sell for other clients.
15. Confidential Relationship. The terms and conditions of this Agreement, and all information and advice furnished by either party to the other shall be treated as confidential and shall not be disclosed to third parties except (i) as required by law, rule, or regulation, (ii) as requested by a regulatory authority, (iii) for disclosures by either party of information that has become public by means other than wrongful conduct by such party or its officers, employees, or other personnel, (iv) for disclosures by either party to its legal counsel, accountants, or other professional advisers, (v) as necessary for Chandler to carry out its responsibilities hereunder, or (vi) as otherwise expressly agreed by the parties.
16. No Assignment& Amendments. Neither party may assign, directly or indirectly, all or part of its rights or obligations under this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. This Agreement may be amended at any time by mutual agreement in writing.
17. Governing Law. It is understood that this Agreement shall be governed by and construed under and in accordance with the laws of the State of California.
18. Severability. Any provision of this Agreement which is prohibited or unenforceable shall be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.
19. Receipt of Brochure and Privacy Policy. Client hereby acknowledges receipt of the disclosure statement or "brochure" and “brochure supplement” also known as Part 2A and Part 2B of Form ADV, required to be delivered pursuant to Rule 204-3 of the Investment Advisers Act of 1940 (Brochure). Client further acknowledges receipt of Chandler’s Privacy Policy, as required by Regulation S-P.
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4 20. Arbitration. It is agreed that any controversy between Chandler and the Client arising out of Chandler business or this Agreement, shall be submitted to arbitration conducted under the provisions of the commercial arbitration rules of the American Arbitration Association. Arbitration must be commenced by service upon the other party of a written demand for arbitration or a written notice of intention to arbitrate, therein electing the arbitration tribunal. In the event the Client does not make such election within five (5) days of such demand or notice, then the Client authorizes Chandler to do so on the Client’s behalf. Judgment upon any award rendered by the arbitrators shall be final and may be entered in any court having jurisdiction thereof. This clause does not constitute a waiver of any right including the right to choose the forum, whether arbitration or adjudication, in which to seek resolution of disputes.
Client
By:
Date
Name & Title:_________________________________________________ Chandler Asset Management, Inc.,
a California Corporation
By:
Nicole Dragoo Date
President
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5 EXHIBIT A
Scope of Services
Chandler Asset Management is pleased to offer the City of Oroville (“City”) the following services:
Investment Policy Review. At the inception of the relationship, Chandler’s investment professionals will conduct an extensive review of the City’s Investment Policy to ensure it encompasses the latest requirements of California Government Code, as well as industry best practices and any management directives. In addition, we will perform a formal review of the City’s Investment Policy annually to ensure that it is updated to reflect the latest changes to California Government Code, as well as incorporate your objectives and cash flow needs that may change over time. Develop a customized investment strategy and Appropriate Risk and Performance Measuring Benchmark. The strategy will be developed to support the City’s financial goals while ensuring safety, providing liquidity, and generating competitive returns. Along with an overarching investment strategy designed to meet your risk tolerance and return expectations, we will identify an appropriate benchmark to measure portfolio outcomes. The benchmark should reflect the actual securities being purchased and the risks undertaken and should have a similar weighted average maturity and credit profile as the portfolio.
Comprehensive Investment Management. Chandler will provide full-time investment management services for the City pursuant to the prudent investor standard of care required as a fiduciary. We will work with City staff to monitor investment opportunities and evaluate investments in the portfolio within the scope of a comprehensive strategy to ensure safety, liquidity, and return. Provide Credit Analysis of Investment Instruments in Portfolio. Chandler’s rigorous process for reviewing credit securities considered for inclusion in clients’ portfolios is designed to identify stable and improving credits, as well as early detection of weak or deteriorating credits. Close attention is paid to security issuers, with reviews taking place on a weekly basis. Chandler’s Credit Committee conducts fundamental macroeconomic, industry-wide, and issuer-specific analysis which results in the development and maintenance of an Approved Issuer List of securities. We will communicate changes to you to ensure that you and your staff are informed of market conditions or significant developments in the City’s portfolio.
Compliance Monitoring. We will monitor your portfolio to ensure compliance with your investment policy, state law, and any additional directives. When we begin our relationship with the City, Chandler’s compliance personnel will hard-code each specific element of the investment policy and any additional client directives into the system for the portfolio. Best Execution, Settlement, and Documentation. Chandler executes approved securities transactions on a transparent and highly competitive basis, in accordance with our commitment to best execution and documents the quotes received. All trades will be settled at the third-party custodian bank using delivery-versus-payment (DVP) procedures. This competitive process can be evidenced on daily trade tickets viewable by clients on the Chandler Client Portal. Reconciliation with Custodian Records and Settlement. Chandler’s operations team performs daily reconciliations of cash balances and positions in all accounts and invests in best-in-class tools and technology to support the portfolio management process and simplify investment reporting and compliance.
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6 Portfolio Accounting and Reporting. We generate monthly reports that include a management summary of portfolio characteristics and performance, as well as full accounting details. Monthly reports are available no later than the third business day following month-end. You will also receive a quarterly report in a format designed to facilitate discussion between our investment professionals and the City’s staff. In addition to the monthly and quarterly reports, we will prepare annual reports that satisfy GASB 40 and 72 requirements to facilitate the City’s year-end reporting. Reports will be prepared in accordance with state law and the Governmental Accounting Standards Board (GASB) and are compiled to meet your specific needs. Performance for your portfolio will be calculated and reported in compliance with the CFA Institute’s Global Investment Performance Standards (GIPS®). Online Access. Chandler’s Client Portal is the custom web-based reporting tool that provides clients with secure access to a variety of digital files, including customized reports, trade tickets, and documents, as well as the ability to download daily transactions and holdings, historical monthly statements, and quarterly reports. Reports can be downloaded in Excel format and easily mapped and integrated into your internal reporting requirements, aggregating your data for effective analysis, and improving your operational efficiencies.
Broker-Dealer Due Diligence. The Investment Management Team maintains an active, productive relationship with the broker-dealer community to promote an ongoing flow of market information and to execute trades for our clients at competitive prices. This advantage provides our clients with market access that they would not be able to achieve on their own. We review the credentials and regulatory background of each broker-dealer firm and their employees with whom we trade using FINRA’s online BrokerCheck System.
Serve as a General Resource for City of Oroville Staff. We will keep you fully informed of investment strategies, market conditions, and developments that are relevant to your investment program and that could potentially impact you from risk, opportunity, operational, and statutory perspective. We will meet with your staff on a quarterly basis either in person or in a secure virtual setting, and our investment professionals will also be available by phone during business hours. All meetings between Chandler and the City will be virtual for the first two years upon execution of the contract.
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Item 15.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND COUNCIL
FROM: BILL LAGRONE, ASSISTANT CITY ADMINISTRATOR
TOM LANDO, SPECIAL PROJECTS COORDINATOR
DAWN NEVERS, ASST. COMMUNITY DEVELOPMENT DIRECTOR
RE: NEGOTIATE DEVELOPMENT AGREEMENT AND PREPARE
NECESSARY STUDIES FOR APNS 078-010-047 AND 078-020-035
DATE: APRIL 5, 2022
SUMMARY
Authorize the City Administrator to enter into a contract to prepare an Environmental Impact Report and related studies, including a development agreement for property located on Ophir Road APNs 078-010-047 and 078-020-035, and allocate $300,000 to pay for this work.
DISCUSSION
The City of Oroville General plan designates the parcels south of Ophir Road as a Ophir Road Specific Plan Area for a mixture of industrial, technology, and warehouse uses. As a part of the City’s on-going economic development efforts, it is important to position this area so that it is development ready including performing all necessary studies to allow for a developer to move forward without the long delay once a potential user is identified.
This work would include a careful examination of the current general plan designation, making any amendments to that designation that might be required, preparing the related environmental studies including hiring a qualified firm to prepare an environmental impact report.
At the same time, to ensure that the City is fully reimbursed all of its costs, it is recommended that a development agreement be prepared so that when the property is either sold or developed, the owner and/or developer are responsible to fully reimburse the City all costs.
FISCAL IMPACT
Allocate $300,000 to prepare the necessary reports and studies. Funding will come from the General Fund Unassigned Fund Balance.
RECOMMENDATION
Authorize the City Administrator to enter into a contract to prepare an Environmental Impact Report and related studies, including a development agreement for property 258
Item 16.
located on Ophir Road APNs 078-010-047 and 078-020-035, and allocate $300,000 to pay for this work
ATTACHMENTS:
None
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Item 16.
CITY OF OROVILLE
STAFF REPORT
TO: MAYOR REYNOLDS AND COUNCIL MEMBERS
FROM: BILL LAGRONE, CITY ADMINISTRATOR
DAWN NEVERS, ASST. DIRECTOR COMMUNITY DEVELOPMENT
RE: PUBLIC SAFETY FACILITY REMODEL PROJECT – AGREEMENT
AMENDMENT NO. 1
DATE: APRIL 5, 2022
SUMMARY
The Council may consider Amendment No. 1 to Agreement No. 3394 D.H. Slater & Sons, Inc. for the additional cost of change orders due to discovery during demolition and remodel of the Dispatch Center and Emergency Operation Center (EOC) at the Public Safety Building.
BACKGROUND
The existing dispatch center was originally built in 1982, has been used 24 hours a day for the last 39 years and was in need of a remodel and updating. Originally, the proposed plan was to update areas within the public safety department, to include an updated training room that would be able to facilitate a City Emergency Operation Center (EOC), new dispatch center, expanded lobby and added customer window, and new restroom facilities on both floors to meet accessibility for the public and personnel.
In 2019, the contract was awarded, and the construction commenced soon after to find the work to be substandard and unacceptable. The contractor was later let go.
DISCUSSION
The project was published again and on November 2, 2021, the Council awarded D.H. Slater & Sons, Inc. as the lowest and most qualified bidder at $1,246,832.00 with a 15% contingency of $187,024.80 to cover the cost of anticipated deficiencies and unsafe conditions created.
As D.H. Slater & Sons, Inc. commenced work to remove and correct a former contractors substandard work, it became apparent there were more deficiencies than anticipated. The contractor and the City’s Construction Manager and the Building Division staff documented the deficiencies as the work continued.
To date, $116,747.83 in change orders to correct deficiencies have been approved. There is an additional $60,000 in change orders to be approved to correct deficiencies. In an effort to complete the remodel and update of the facility properly, staff would like to request an additional $375,000 to update the remainder of the public safety facility. This would include installing 260
Item 17.
flooring and painting the remainder of the first floor match the remodel. Abandoning old and inoperable equipment and wall speakers and patching. Exterior updates would include stucco patching and paint with replacement of vertical metal roofing panels. Exterior updates will also include LED lighting, added visitor parking and drought tolerant landscaping.
Total change orders with the additional interior and exterior updates are anticipated to reach $555,000, less the previously approved contingency of $187,024.80 for a requested total of $400,000.00.
FISCAL IMPACT
The fee for all change orders outlined in Exhibit “A” is $374,190.72. Payment is to occur as outlined in Exhibit “A”. Funds in the amount of $400,000.00 are requested should any additional unforeseeable items arise. Request Council approval for a contract Amendment No. 1 in the amount of $400,000.00 from fund 304 Capital Projects Fund (RDA Bond Proceeds)
RECOMMENDATION
Request Council approval for a contract Amendment No. 1 in the amount of $400,000.00
ATTACHMENTS
Attachment A - Agreement Amendment No. 1
Attachment B – Exhibit A
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Item 17.
Agreement No 3394
AMENDMENT TO PROJECT CONTRACT AGREEMENT NO. 3394
FOR PROJECT CONTRACT BETWEEN THE CITY OF OROVILLE
AND SLATER & SONS, INC.
This Amendment dated April 5, 2022, is to the Project Contract Agreement No. 3394 between the City of Oroville (“City”) and Slater & Sons, Inc. (“Contractor”).
A copy of Contract Agreement No. 3394 is attached as Exhibit “B” including all prior amendments.
In consideration of terms and conditions herein, City and Contractor agree that Agreement No. 3394 shall be amended as follows:
1. The Agreement shall be amended to include work related to the additional change orders for the Facility Repair and Remodel of Oroville Police & Fire Department project, which are enumerated in the scope documents. The scope documents are attached as Exhibit A to this Amendment.
2. The fee for all change orders outlined in Exhibit “A” is $374,190.72.
Payment is to occur as outlined in Exhibit “A”. Funds in the amount of $400,000.00 are requested should any additional unforeseeable items arise.
3. Conflicts between the Agreement and any previous amendment to the Agreement shall be controlled by this amendment. All other provisions within Agreement No. 3394 as amended shall remain in full force effect.
CITY OF OROVILLE SLATER & SONS, INC.
Chuck Reynolds, Mayor By:
ATTEST: APPROVED AS TO FORM:
Bill LaGrone, City Clerk Scott E. Huber, City Attorney
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Item 17.
Public Safety Facility Remodel
Slater & Sons Inc.
Contract Amount $ 1,246,832.00
Contrac Date 11/18/2021
15% Contingency $ 187,024.80
Change Orders
PCO # Date PCO Description PCO Amount Date Approved Payment Amount Contract Balance 1 2/2/2022 Elevator Clearance Device $ 1,109.75 2/24/2022 2 2/2/2022 Bullet Proof Transaction Window $ 2,584.05 2/24/2022 3 2/7/2022 Rework existing HVAC & Plumbing $ 8,965.98 2/24/2022 4 2/7/2022 Hallway Carpet Replacement $ 3,115.35 2/24/2022 5 2/9/2022 Fire Rated Light Covers $ 7,877.74 2/24/2022 6 2/11/2022 Exhaust for Elevator Equip Room $ 4,853.58 2/24/2022 7 VOID Add fire alarm system for elevator recall VOID
8 2/15/2022 Added Dispatch Lighting $ 5,842.77 2/24/2022 9 2/16/2022 Above Ceiling Insulation $ 2,740.45 2/24/2022 10 2/17/2022 Fire Rated T-Bar $ 10,005.00 2/24/2022
11 2/17/2022 Addl. Misc. framing & Subfloor replacement $ 12,982.24 2/24/2022 12 2/23/2022 Add Ceiling Radiation Dampers $ 13,337.14 3/7/2022 13 2/24/2022 T&M Electrical $ 14,020.94 3/7/2022
14 2/24/2022 Relocate Women's Shower $ 4,887.50 3/23/2022 15 2/24/2022 Addl. Misc. framing & Subfloor replacement $ 9,390.23 3/23/2022 16 2/24/2022 Floor Leveler Women's Restroom $ 2,399.65 3/7/2022 17 2/25/2022 Front Concrete $ 59,468.80 2/25/2022
18 2/24/2022 Deletion of Stairs $ (54,136.95) 3/23/2022 19 3/9/2022 Added Site Lighting $ 21,074.90 3/11/2022
20 3/15/2022 Replace Circulaton Pump $ 5,031.25 3/23/2022 21 3/15/2022 Radiation Dampers for Upstairs Office $ 3,663.33 3/23/2022 22 3/15/2022 Rework Non-Compliant Gas on Roof $ 5,220.00 3/23/2022 23 3/17/2022 Additional Flooring $ 65,436.15 3/23/2022
24 3/17/2022 Replace Gate Valve $ 1,972.25 3/23/2022
25 3/18/2022 Replace Flag Pole $ 1,753.75
26 Paint entire interior/exterior $ 74,635.00
27 Roofing replacement $ 172,500.00
28 Rework existing doors $ 8,869.45
29 New lockers (includes credits) $ 31,098.00
30 Add interior window $ 500.00
31 Drywall patching at old low voltage $ 5,000.00
32 Dry rot repairs $ 2,500.00
33 Delete solar tube per owner request $ (2,625.00)
34 Delete reinstallation of partition per owner request $ (1,541.00) 35 Add bulletproof paneling and door $ 13,000.00
36 Additional drywall & ceiling tile $ 15,000.00
37 Add bike racks $ 1,000.00
38 Additional site lighting at flagpole & bldg lighting $ 8,000.00 39 Add frp to restroom & SS wrap $ 5,000.00
40 Phone line for elevator $ 1,200.00
41 Infill door to fire side $ 2,400.00
42 Replace bell support $ 2,500.00
$ 552,632.30 $ - $ (365,607.50)
Requested Extras $ 374,629.27
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Item 17.
Exhibit "A"
Description of Change Orders
8 Added Dispatch Lighting $ 5,842.77
9 Above Ceiling Insulation $ 2,740.45
19 Added Site Lighting $ 21,074.90
23 Additional Flooring $ 65,436.15
25 Replace Flag Pole $ 1,753.75
26 Paint entire interior/exterior $ 74,635.00
27 Roofing replacement $ 172,500.00
28 Rework existing doors $ 8,869.45
29 New lockers (includes credits) $ 31,098.00
30 Add interior window $ 500.00
31 Drywall patching at old low voltage $ 5,000.00
32 Dry rot repairs $ 2,500.00
33 Delete solar tube per owner request $ (2,625.00)
34 Delete reinstallation of partition per owner request $ (1,541.00) 35 Add bulletproof paneling and door $ 13,000.00
36 Additional drywall & ceiling tile $ 15,000.00
37 Add bike racks $ 1,000.00
38 Additional site lighting at flagpole & bldg lighting $ 8,000.00 39 Add frp to restroom & SS wrap $ 5,000.00
40 Phone line for elevator $ 1,200.00
41 Infill door to fire side $ 2,400.00
42 Replace bell support $ 2,500.00
$ 435,884.47
Approved Contingeny: $ 187,024.80
Contigngency Spent To Date: $ 125,331.05
Contingency Balance: $ 61,693.75
Total of Change Orders Above to be Approved: $ 435,884.47 Less Contingency Balance: $ 374,190.72
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