Cities Index.
Agenda

Ridgecrest City Council
July 19, 2023

Document
Agenda
Meeting
July 19, 2023
Body
Ridgecrest City Council
Pages
14
Original file
11.5 MB
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https://www.ridgecrest-ca.gov/council-agendas
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
AGENDA
July 19, 2023
Closed Session 5:30 p.m.

Regular Session 6:00 p.m.

City Hall, Council Chambers
100 100 West California Avenue
Ridgecrest CA 93555
Ricca Charlon, CMC
City Clerk
[email protected]
(760) 499-5002
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in the meeting, please contact Ricca Charlon at (760) 499-5002. Requests must be made as early as possible and at least one full business day before the start of the meeting.

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All of our meetings are streamed live at https://ridgecrest-ca.gov/369/Watch or on YouTube at https://www.youtube.com/cityofridgecrest/live and are also available for playback after the meeting.

Call in for public comments:

To participate with verbal comments, please call (760) 499-5010. This phone line will allow only one caller at a time, so if the line is busy, please continue to dial. We will be allowing a 20-30 second delay between callers to give time for media delays and callers to dial in. If you wish to comment on multiple items you will need to call in as each item is presented.

CITY COUNCIL
Eric A. Bruen, Mayor
Solomon P. Rajaratnam, Mayor Pro-Tem
Kyle Blades, Vice Mayor
L. Scott Hayman, Council Member
John ‘Skip’ Gorman, Council Member
Ron Strand, City Manager
Keith Lemieux, City Attorney
Martin Koczanowicz, City Attorney
This Page Intentionally Left Blank
100 W. CALIFORNIA AVE. | RIDGECREST, CA 93555
Phone 760.499.5000 | Fax 760.499.1520
www.ridgecrest-ca.gov

NOTICE AND CALL OF A SPECIAL CLOSED SESSION MEETING OF THE

RIDGECREST CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY /

HOUSING AUTHORITY / FINANCING AUTHORITY

TO THE MEMBERS OF THE RIDGECREST CITY COUNCIL / SUCCESSOR

REDEVELOPMENT AGENCY / HOUSING AUTHORITY / FINANCING AUTHORITY, PUBLIC AND CITY CLERK:

PUBLIC NOTICE that a SPECIAL CLOSED SESSION MEETING of the Ridgecrest City Council/Successor Redevelopment Agency/Housing Authority/Financing Authority is hereby called on:

Wednesday, July 19, 2023 @ 5:30 p.m.

City Council Chambers
100 W. California Avenue
Ridgecrest, California
Said SPECIAL CLOSED SESSION MEETING shall be for the purpose of:

CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION - Pursuant to Government Code § 54959.9(b) – One Case
CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION - Pursuant to Government Code § 54959.9(c) – One Case
Dated: July 13, 2023
Eric A. Bruen, Mayor / Chair
ATTEST:

Ricca Charlon, City Clerk
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RIDGECREST CITY COUNCIL

SUCCESSOR REDEVELOPMENT AGENCY

FINANCING AUTHORITY

HOUSING AUTHORITY

Page 1 of 3 ends

AGENDA
Wednesday, July 19, 2023 Closed Session – 5:30 p.m.

Regular Session – 6:00 p.m.

Pursuant To California Government Code 54953 An Additional Call In Location Has Been Established For Council Member(s) Who Will Attend This Meeting Via Teleconference At 91 12th Street, Cayucos, CA 93430

CALL TO ORDER
• Roll call

APPROVAL OF AGENDA

PUBLIC COMMENT ON CLOSED SESSION

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION - Pursuant to Government Code § 54959.9(b) – One Case
CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION - Pursuant to Government Code § 54959.9(c) – One Case

REGULAR SESSION
• Pledge Of Allegiance
• Invocation

ATTORNEY REPORT OUT OF CLOSED SESSION

PRESENTATION
Waste Water Treatment Plant Update Strand
PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA - Persons wishing to address the Council on matters that are within the Council’s jurisdiction and DO NOT ALREADY APPEAR ON THE AGENDA, may do so at this time.

COUNCIL ANNOUNCEMENTS/DIRECTION
CONSENT CALENDAR – All Matters Listed Under The Consent Calendar Are To Be Considered Routine And Enacted By One Motion Unless Pulled By A Council Member Or A Member Of The Public.

1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council SPECIAL Meeting Dated July 10, 2023 Charlon

2. A Resolution to Approve the FY23-24 Rate Adjustment Request for Solid Waste Services Strand

AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – July 19, 2023

Page 2 of 3 ends

3. Resolution Of The Ridgecrest City Council Authorizing The City Manager To Enter Into A Memorandum Of Agreement With Sierra Sands Unified School District For Law Enforcement Services (School Resource Officer Program) Dampier

4. Resolution Reaffirming and Approving the Annual Investment Policy Freese

5. A Resolution Approving The Project List For Fiscal Year 2023-2024 For The California State Of Good Repair (SGR) Program For The Following Project: Electric Transit Van Replacement Smith

6. Authorization For The City Manager, Ron Strand, To Sign The Notice Of Completion For The Replacement Of The Existing Partitions Located At The Kerr McGee Community Center, For The City Clerk To File The Notice Of Completion And For City Staff To Release Retention In The Amount Of $43,470.55 To The Contractor, Horizons Construction Company, Within Thirty (30) Days After Recordation Of The Notice Of Completion Wegener

7. Authorization For The City Manager, Ron Strand, To Sign The Notice Of Completion For The Painting Of The Caps On The City Hall And Kerr McGee Community Center, For The City Clerk To File The Notice Of Completion And For City Staff To Release Retention In The Amount Of $2,568.75 To The Contractor, KC Martin Construction, Within Thirty (30) Days After Recordation Of The Notice Of Completion Wegener

DISCUSSION / ACTION ITEMS

8. Proposed Approval of Increased Appropriations to the Fiscal Year 2023-2024 Budget for the Human Resources/Risk Management Internal Service Fund (ISF) Freese

9. Discussion And Proposed Action To Approve A Resolution Designating A Voting Member And Alternate(s) To Attend The League Of California Cities Annual Conference And Represent The City Of Ridgecrest Charlon

10. Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) Hayman

11. A Resolution To Approve The Professional Service Agreement With Willdan Engineering For An Amount Not To Exceed $578,021 For Preliminary/Construction Engineering Services For The Affordable Housing Sustainable Communities Grant Project; And Authorize The City Manager To Sign The Agreement Reed

PUBLIC HEARING

12. Public Hearing For Input To The City Council Regarding Request From Ridgecrest Area Convention And Visitors Bureau (RACVB) For Council’s Adoption Of A Resolution Of Intention To Renew The Ridgecrest Tourism Improvement District (RTID) 2023-2033 And Sunset The Existing One Attorney

AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – July 19, 2023

Page 3 of 3 ends

COMMITTEE REPORTS
Ridgecrest Area Convention and Visitor Bureau (RACVB)
Members: Solomon Rajaratnam and Megan McKenzie (staff)
Meeting: 4th Wednesday each month at 9:00 a.m.

Location: California Welcome Center
➢ Report from 6/28/23
Finance Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 2nd Tuesday each month at 5:30 p.m.

Location: City Hall Council Chambers
➢ Report from 7/11/23
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4th Thursday each month at 5:00 p.m.

Location: City Hall Council Chambers
➢ Report from 6/22/23 - canceled
➢ Next meeting 7/27/23
Economic Development Committee
Members: Kyle Blades and Solomon Rajaratnam
Meeting: 1st Monday of the month @ 5:15 p.m.

Location: City Hall Council Chambers
➢ Report from 7/3/23 - canceled
➢ Next meeting 8/7/23
Parks, Recreation, and Quality of Life Committee
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1st Tuesday each month at 5:30 p.m.

Location: Kerr McGee Center Meeting Rooms
➢ Report from 7/4/23 – canceled
➢ Next meeting 8/1/23
City Organization and Services Committee (‘City Org’)
Members: Mayor Eric A. Bruen and Skip Gorman
Meeting: 1st Thursday each month at 5:30 p.m.

Location: City Hall Council Chambers
➢ Report from 7/6/23 – canceled
➢ Next meeting 8/3/23

OTHER COMMITTEES, BOARDS, OR COMMISSIONS

CITY MANAGER REPORT

FUTURE AGENDA ITEMS

MAYOR AND COUNCIL COMMENTS

ADJOURNMENT
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Special Meeting Dated July 10, 2023
PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:

Draft Minutes of the City Council / Successor Redevelopment Agency / Housing Authority / Financing Authority Special Meeting Dated July 10, 2023 FISCAL IMPACT: None
ACTION REQUESTED: Approve minutes
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: July 19, 2023
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RIDGECREST CITY COUNCIL

SUCCESSOR REDEVELOPMENT AGENCY

FINANCING AUTHORITY

HOUSING AUTHORITY

Page 1 of 2 ends

SPECIAL MEETING DRAFT MINUTES
Monday, July 10, 2023 Regular Session – 5:30 p.m.

Closed Session – End of Meeting

ROLL CALL – 5:33 p.m.

Council Present: Mayor Eric A. Bruen; Mayor Pro-Tem Solomon P. Rajaratnam; Council Member Skip Gorman; Vice Mayor Kyle Blades

Absent: Council Member L. Scott Hayman
Staff Present: City Attorney M. Koczanowicz (WebEx); City Manager Strand; City Clerk Charlon; PW Director Reed

APPROVAL OF AGENDA
Motion To Approve – Blades - Rajaratnam: 4 Ayes; 1 Absent (Hayman) NOTE: The vote is displayed in bold below each item. For example, Blades-Rajaratnam denotes Council Member Blades made the motion and Council Member Rajaratnam seconded the motion. Ayes, Noes, Absents, Abstentions follow

CONSENT CALENDAR

1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated June 21, 2023 CHARLON
Motion To Approve Consent Calendar Rajaratnam - Blades 4 Ayes; 1 Absent (Hayman)

DISCUSSION / ACTION ITEMS

2. A Resolution Of The City Of Ridgecrest Approving Contract Change Orders Number One And Two; And Quantity Adjustments Through June 2nd, 2023 In The Amount Of $750,000.00 With The Contractor Griffith Construction. Said Adjustments Are For Time And Material Work, Contract Additions; And Work Added To Facilitate A Complete Project; And Authorize The City Manager, To Sign Said Change Orders REED
Motion To Approve - Blades - Rajaratnam: 4 Ayes; 1 Absent (Hayman)

3. A Resolution Of The City Of Ridgecrest Approving Contract Change Orders Number One And Two; And Quantity Adjustments Through June 20th, 2023 In The Amount Of $775,000.00 With The Contractor Everlevel Holdings. Said Adjustments Are For Time And Material Work, Contract Additions; And Work Added To Facilitate A Complete Project; And Authorize The City Manager, To Sign Said Change Orders REED
Motion To Approve - Blades - Rajaratnam: 4 Ayes; 1 Absent (Hayman)

DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY SPECIAL – July 10, 2023

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4. A Resolution Of The Ridgecrest City Council Approving The Application For Funds For The FY24/25 & FY-25/26 Congestion Mitigation Air Quality Program (CMAQ) And/Or Carbon Reduction Program For The Procurement Of Two (2) Transit Vans; Committing The Necessary Local Match Funding And Assuring The Completion Of The Project REED Motion To Approve - Blades - Rajaratnam: 4 Ayes; 1 Absent (Hayman)

5. A Resolution Of The Ridgecrest City Council Approving The Application For Funds For The FY24/25 & FY25/26 Regional Surface Transportation Program (RSTP) And Highway Infrastructure Program (HIP) Under The Moving Ahead For Progress In The 21st Century (MAP-21) For The South Mahan Street Resurfacing, Drainage And Intersection Rehabilitation Between W. Bowman Rd And W. Dolphin Avenue Project REED Motion To Approve - Rajaratnam - Blades: 4 Ayes; 1 Absent (Hayman)

6. A Resolution To Amend A Professional Services Agreement With Willdan Engineering Inc. In The Amount Of $17,262.00 To Include The Repair Of Existing Concrete, Traffic Loop And Asphalt Improvements In The Capital Improvement Plan (CIP) Phase II Project And The Engineers Report REED
Motion To Approve - Blades - Rajaratnam: 4 Ayes; 1 Absent (Hayman)

7. A Resolution To Amend A Professional Services Agreement With Willdan Engineering Inc. In The Amount Of $105,000.00 For The West Ward Phase I Improvement Project To Include Addition Force Account Inspection Services And Project Subconsultant Services REED Motion To Approve - Rajaratnam - Blades: 4 Ayes; 1 Absent (Hayman)

8. A Resolution To Amend A Professional Services Agreement With Willdan Engineering Inc. In The Amount Of $21,839.20 For The West Ward Phase II Improvement Project To Include Additional Design And Survey Efforts REED
Motion To Approve - Blades - Rajaratnam: 4 Ayes; 1 Absent (Hayman)

CITY MANAGER REPORT

MAYOR AND COUNCIL COMMENTS

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION - Pursuant to Government Code § 54956.9 Subparts (a), (d)(2) and (e)(3). Two cases ATTORNEY REPORT OUT OF CLOSED SESSION – NO REPORTABLE ACTION ADJOURNMENT – 7:35 P.M.
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: A Resolution to Approve the FY23-24 Rate Adjustment Request for Solid Waste Services PRESENTED BY: Megan McKenzie, Administrative Analyst
Background
In 2011, the City issued a competitive request for proposals for solid waste collection services and entered into a new agreement with Waste Management (WM) effective January 1, 2012. A First Amendment to the Solid Waste Agreement (First Amendment) was adopted by resolution on February 21, 2018. On July 19, 2022 the City adopted a resolution to renew the Amended & Restated Solid Waste Agreement for solid waste collection services (including organics under SB 1383) with Waste Management (WM).

Summary
On March 30, 2023 WM submitted a request for an annual contractual adjustment of service rates pursuant to section 10.2 and Exhibit B of the Solid Waste Franchise Agreement between the City and WM. City Staff reviewed the adjustment calculations to retrieve and validate data sets for accuracy including: Labor Factor - Employment Cost Index (U.S. Bureau of Labor Statistics); Fuel Factor – Fuel Index (U.S. Energy Information Administration); Other Factor – Consumer Price Index (Bureau of Labor Statistics); and the Disposal Component Factor – Kern County Bin/Gate Fees (Ordinance G-9203). City staff found that all factors used in the rate calculation are accurate according to the data published by the referenced sources.

Annual Contractual Adjustment of Service Rates:

WM is requesting the City approve an annual adjustment in residential, commercial and industrial service rates of

9.1%. Per the adjustment limitations set forth in Exhibit B, the annual Operating Component Factor adjustment may not increase more than 6.0% nor decrease less than 0.00% – in the case of an increase/decrease outside that threshold, the unused percentage increase or decrease otherwise permitted may be carried over until such time as it may be applied without violating the provisions of Exhibit B. For FY 2023-2024, WM is requesting an annual adjustment of 6.0% with a 3.1% carryover to 2024-2025. Contributing factors to the rate adjustment were increases in labor and fuel costs and inflation. Staff verified the rate adjustment was calculated in accordance to Exhibit B of the agreement. The calculations & supporting documentation for the requests are included for reference. Upon approval, the adjusted rates would be effective beginning July 1, 2023.

Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
Schedule of Most Used Services by Category
FY22-23
Rate
OCF
ADJ
Disposal
ADJ
Total
INCR
FY23-24
Rate
Residential
35-Gallon Cart
64-Gallon Cart
95- Gallon Cart
$20.23
$22.79
$25.29
$1.21
$1.37
$.1.52
$0
$0
$0
$1.21
$1.37
$1.52
$21.44
$24.16
$26.81
Commercial
3yd x 1 $257.72 $12.87 $2.90 $15.77 $273.49
Multi-Family

1.5yd x 1 $176.12 $10.57 $0 $10.57 $186.69
Staff recommends City Council approve the requested annual solid waste services rate adjustment.

Exhibit A – Waste Management Rate Adjustment Request Letter Exhibit B – 2023/2024 Rate Adjustment Chart
Exhibit C – Ordinance G-9203 (Kern County Gate/Bin Fees) FISCAL IMPACT: None
ACTION REQUESTED: Adopt the Resolution.

CITY MANAGER’S RECOMMENDATION: Action as requested.

Submitted by: Strand Action Date: July 19, 2023
RESOLUTION NO. 23-xx

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST TO APPROVE THE FISCAL YEAR 2023/24 RATES FOR SOLID WASTE

SERVICES
WHEREAS, the City of Ridgecrest entered into the Amended & Restated Solid Waste Agreement (Agreement) with Waste Management (WM) adopted July 19, 2022; and, WHEREAS, on March 30, 2023, Waste Management submitted a request for an annual contractual adjustment of service rates pursuant to section 10.2 and Exhibit B of the Solid Waste Franchise Agreement between the City and WM; and, WHEREAS, WM is requesting the City approve an annual adjustment in residential, commercial and industrial service rates of 6.0% with a carryover of 3.1%; and, WHEREAS, City staff verified the annual rate adjustment was calculated in accordance with the Agreement; and,
WHEREAS, the FY23/24 rate adjustments will be effective July 1, 2023.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest does hereby agree to the above and adopt this resolution.

APPROVED AND ADOPTED this 19th day of July 2023 by the following vote.

AYES:

NOES:

ABSENT:

ABSTAIN:

Eric Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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•••
••
Waste Management
City of Ridgecrest
2022-2023 Rate Schedule A B C D E F = B * C * D * E G = F * 10%/(1-10%) H = F + G I J = H * I K = H + J L = A - H M N = L * M O = L + N P = K + O 2022-2023 Rates Vol Freq/Wk Wks
Bin Fee
Rate per
Collected
Yard. OR
Disposal
Per Ton
Pre-Franchise
Fee Disposal
Portion of 2022-
2023 rate Franchise Fee
Disposal
Portion
including
FF
Disposal
Adjust %
Disposal
Adjust $
Post
Franchise
Fee
Adjusted
Disposal
Portion
Operating
Portion OCF
Operating
Portion
Adjust $
Adjusted
Operating
Portion
Proposed
2023-2024
Final Rate
Residential Service
35-Gallon Cart Service $ 20.23 $ 20.23 6.00% $ 1.21 $ 21.44 $ 21.44 64-Gallon Cart Service $ 22.79 $ 22.79 6.00% $ 1.37 $ 24.16 $ 24.16 95-Gallon Cart Service $ 25.29 $ 25.29 6.00% $ 1.52 $ 26.81 $ 26.81 Additional 95-Gallon Cart (Resi) $ 11.84 $ 11.84 6.00% $ 0.71 $ 12.55 $ 12.55 Residential Recycling Service (Every Other Wk)
One or Two 95-Gallon Cart Service $ - $ - 6.00% $ - $ - $ - Additional 95-Gallon Cart (Resi) $ 11.84 $ 11.84 6.00% $ 0.71 $ 12.55 $ 12.55 Residential Organics Service (Weekly)
One 35-Gallon Cart Service $ - $ - 6.00% $ - $ - $ -
Additional 35-Gallon Cart $ 11.84 $ 11.84 6.00% $ 0.71 $ 12.55 $ 12.55 Commercial Service
96g Cart 1x $ 58.34 0.475 1 4.33 $ 3.00 $ 6.17 $ 0.69 $ 6.86 6.7% $ 0.46 $ 7.32 $ 51.48 6.00% $ 3.09 $ 54.57 $ 61.89

1.5yd x1 $ 177.36 1.500 1 4.33 $ 3.00 $ 19.49 $ 2.17 $ 21.66 6.7% $ 1.45 $ 23.11 $ 155.70 6.00% $ 9.34 $ 165.04 $ 188.15

1.5yd x2 $ 285.29 1.500 2 4.33 $ 3.00 $ 38.97 $ 4.33 $ 43.30 6.7% $ 2.90 $ 46.20 $ 241.99 6.00% $ 14.52 $ 256.51 $ 302.71

1.5yd x3 $ 393.39 1.500 3 4.33 $ 3.00 $ 58.46 $ 6.50 $ 64.96 6.7% $ 4.35 $ 69.31 $ 328.43 6.00% $ 19.71 $ 348.14 $ 417.45

1.5yd x4 $ 501.20 1.500 4 4.33 $ 3.00 $ 77.94 $ 8.66 $ 86.60 6.7% $ 5.80 $ 92.40 $ 414.60 6.00% $ 24.88 $ 439.48 $ 531.88

1.5yd x5 $ 609.31 1.500 5 4.33 $ 3.00 $ 97.43 $ 10.83 $ 108.26 6.7% $ 7.25 $ 115.51 $ 501.05 6.00% $ 30.06 $ 531.11 $ 646.62 3yd x1 $ 257.72 3.000 1 4.33 $ 3.00 $ 38.97 $ 4.33 $ 43.30 6.7% $ 2.90 $ 46.20 $ 214.42 6.00% $ 12.87 $ 227.29 $ 273.49 3yd x2 $ 414.88 3.000 2 4.33 $ 3.00 $ 77.94 $ 8.66 $ 86.60 6.7% $ 5.80 $ 92.40 $ 328.28 6.00% $ 19.70 $ 347.98 $ 440.38 3yd x3 $ 572.30 3.000 3 4.33 $ 3.00 $ 116.91 $ 12.99 $ 129.90 6.7% $ 8.70 $ 138.60 $ 442.40 6.00% $ 26.54 $ 468.94 $ 607.54 3yd x4 $ 725.99 3.000 4 4.33 $ 3.00 $ 155.88 $ 17.32 $ 173.20 6.7% $ 11.60 $ 184.80 $ 552.79 6.00% $ 33.17 $ 585.96 $ 770.76 3yd x5 $ 886.62 3.000 5 4.33 $ 3.00 $ 194.85 $ 21.65 $ 216.50 6.7% $ 14.51 $ 231.01 $ 670.12 6.00% $ 40.21 $ 710.33 $ 941.34 4yd x1 $ 296.88 4.000 1 4.33 $ 3.00 $ 51.96 $ 5.77 $ 57.73 6.7% $ 3.87 $ 61.60 $ 239.15 6.00% $ 14.35 $ 253.50 $ 315.10 4yd x2 $ 478.07 4.000 2 4.33 $ 3.00 $ 103.92 $ 11.55 $ 115.47 6.7% $ 7.74 $ 123.21 $ 362.60 6.00% $ 21.76 $ 384.36 $ 507.57 4yd x3 $ 659.54 4.000 3 4.33 $ 3.00 $ 155.88 $ 17.32 $ 173.20 6.7% $ 11.60 $ 184.80 $ 486.34 6.00% $ 29.18 $ 515.52 $ 700.32 4yd x4 $ 840.48 4.000 4 4.33 $ 3.00 $ 207.84 $ 23.09 $ 230.93 6.7% $ 15.47 $ 246.40 $ 609.55 6.00% $ 36.57 $ 646.12 $ 892.52 4yd x5 $ 1,021.95 4.000 5 4.33 $ 3.00 $ 259.80 $ 28.87 $ 288.67 6.7% $ 19.34 $ 308.01 $ 733.28 6.00% $ 44.00 $ 777.28 $1,085.29 6yd x1 $ 413.41 6.000 1 4.33 $ 3.00 $ 77.94 $ 8.66 $ 86.60 6.7% $ 5.80 $ 92.40 $ 326.81 6.00% $ 19.61 $ 346.42 $ 438.82 6yd x2 $ 665.92 6.000 2 4.33 $ 3.00 $ 155.88 $ 17.32 $ 173.20 6.7% $ 11.60 $ 184.80 $ 492.72 6.00% $ 29.56 $ 522.28 $ 707.08 6yd x3 $ 918.69 6.000 3 4.33 $ 3.00 $ 233.82 $ 25.98 $ 259.80 6.7% $ 17.41 $ 277.21 $ 658.89 6.00% $ 39.53 $ 698.42 $ 975.63 6yd x4 $ 1,170.84 6.000 4 4.33 $ 3.00 $ 311.76 $ 34.64 $ 346.40 6.7% $ 23.21 $ 369.61 $ 824.44 6.00% $ 49.47 $ 873.91 $1,243.52 6yd x5 $ 1,423.72 6.000 5 4.33 $ 3.00 $ 389.70 $ 43.30 $ 433.00 6.7% $ 29.01 $ 462.01 $ 990.72 6.00% $ 59.44 $ 1,050.16 $1,512.17 3yd Temp Bin Service (two week maximum) $ 176.66 3.000 1 1.00 $ 3.00 $ 9.00 $ 1.00 $ 10.00 6.7% $ 0.67 $ 10.67 $ 166.66 6.00% $ 10.00 $ 176.66 $ 187.33 3yd Temp Bin Additional Pickup $ 88.61 3.000 1 1.00 $ 3.00 $ 9.00 $ 1.00 $ 10.00 6.7% $ 0.67 $ 10.67 $ 78.61 6.00% $ 4.72 $ 83.33 $ 94.00 Multi-Family Service
Duplex 96g cart service (Single Billed) $ 39.96 $ 39.96 6.00% $ 2.40 $ 42.36 $ 42.36 Duplex 64g cart service (Single Billed) $ 37.28 $ 37.28 6.00% $ 2.24 $ 39.52 $ 39.52 Duplex 32g cart service (Single Billed) $ 34.54 $ 34.54 6.00% $ 2.07 $ 36.61 $ 36.61 Triplex 96g cart service (Single Billed) $ 65.52 $ 65.52 6.00% $ 3.93 $ 69.45 $ 69.45 Triplex 64g cart service (Single Billed) $ 62.82 $ 62.82 6.00% $ 3.77 $ 66.59 $ 66.59 Triplex 32g cart service (Single Billed) $ 60.06 $ 60.06 6.00% $ 3.60 $ 63.66 $ 63.66 Quadplex 96g cart service (Single Billed) $ 91.00 $ 91.00 6.00% $ 5.46 $ 96.46 $ 96.46 Quadplex 64g cart service (Single Billed) $ 88.32 $ 88.32 6.00% $ 5.30 $ 93.62 $ 93.62 Quadplex 32g cart service (Single Billed) $ 85.56 $ 85.56 6.00% $ 5.13 $ 90.69 $ 90.69

1.5yd x1 $ 176.12 $ 176.12 6.00% $ 10.57 $ 186.69 $ 186.69

1.5yd x2 $ 272.39 $ 272.39 6.00% $ 16.34 $ 288.73 $ 288.73

1.5yd x3 $ 368.81 $ 368.81 6.00% $ 22.13 $ 390.94 $ 390.94

1.5yd x4 $ 464.88 $ 464.88 6.00% $ 27.89 $ 492.77 $ 492.77

1.5yd x5 $ 561.34 $ 561.34 6.00% $ 33.68 $ 595.02 $ 595.02 3yd x1 $ 240.68 $ 240.68 6.00% $ 14.44 $ 255.12 $ 255.12 3yd x2 $ 365.62 $ 365.62 6.00% $ 21.94 $ 387.56 $ 387.56 3yd x3 $ 490.80 $ 490.80 6.00% $ 29.45 $ 520.25 $ 520.25 3yd x4 $ 611.76 $ 611.76 6.00% $ 36.71 $ 648.47 $ 648.47 3yd x5 $ 740.69 $ 740.69 6.00% $ 44.44 $ 785.13 $ 785.13 Waste Management
City of Ridgecrest
2022-2023 Rate Schedule A B C D E F = B * C * D * E G = F * 10%/(1-10%) H = F + G I J = H * I K = H + J L = A - H M N = L * M O = L + N P = K + O 2022-2023 Rates Vol Freq/Wk Wks
Bin Fee
Rate per
Collected
Yard. OR
Disposal
Per Ton
Pre-Franchise
Fee Disposal
Portion of 2022-
2023 rate Franchise Fee
Disposal
Portion
including
FF
Disposal
Adjust %
Disposal
Adjust $
Post
Franchise
Fee
Adjusted
Disposal
Portion
Operating
Portion OCF
Operating
Portion
Adjust $
Adjusted
Operating
Portion
Proposed
2023-2024
Final Rate
4yd x1 $ 267.10 $ 267.10 6.00% $ 16.03 $ 283.13 $ 283.13 4yd x2 $ 401.04 $ 401.04 6.00% $ 24.06 $ 425.10 $ 425.10 4yd x3 $ 535.32 $ 535.32 6.00% $ 32.12 $ 567.44 $ 567.44 4yd x4 $ 668.94 $ 668.94 6.00% $ 40.14 $ 709.08 $ 709.08 4yd x5 $ 803.29 $ 803.29 6.00% $ 48.20 $ 851.49 $ 851.49 6yd x1 $ 363.91 $ 363.91 6.00% $ 21.83 $ 385.74 $ 385.74 6yd x2 $ 542.62 $ 542.62 6.00% $ 32.56 $ 575.18 $ 575.18 6yd x3 $ 721.76 $ 721.76 6.00% $ 43.31 $ 765.07 $ 765.07 6yd x4 $ 900.07 $ 900.07 6.00% $ 54.00 $ 954.07 $ 954.07 6yd x5 $ 1,079.28 $ 1,079.28 6.00% $ 64.76 $ 1,144.04 $1,144.04 Commercial Recycling Service
96g Cart 1x $ - $ - 6.00% $ - $ - $ -
Additional 95-Gallon Cart (CM) Every Other Week $ 11.84 $ 11.84 6.00% $ 0.71 $ 12.55 $ 12.55 Additional 95-Gallon Cart (CM) Weekly $ 23.69 $ 23.69 6.00% $ 1.42 $ 25.11 $ 25.11

1.5yd Every Other Week $ - $ - 6.00% $ - $ - $ -

1.5yd x1 $ 135.89 $ 135.89 6.00% $ 8.15 $ 144.04 $ 144.04

1.5yd x2 $ 204.43 $ 204.43 6.00% $ 12.27 $ 216.70 $ 216.70

1.5yd x3 $ 273.04 $ 273.04 6.00% $ 16.38 $ 289.42 $ 289.42

1.5yd x4 $ 341.39 $ 341.39 6.00% $ 20.48 $ 361.87 $ 361.87

1.5yd x5 $ 410.07 $ 410.07 6.00% $ 24.60 $ 434.67 $ 434.67 3yd Every Other Week $ - $ - 6.00% $ - $ - $ -
3yd x1 $ 177.62 $ 177.62 6.00% $ 10.66 $ 188.28 $ 188.28 3yd x2 $ 257.53 $ 257.53 6.00% $ 15.45 $ 272.98 $ 272.98 3yd x3 $ 337.66 $ 337.66 6.00% $ 20.26 $ 357.92 $ 357.92 3yd x4 $ 414.23 $ 414.23 6.00% $ 24.85 $ 439.08 $ 439.08 3yd x5 $ 497.50 $ 497.50 6.00% $ 29.85 $ 527.35 $ 527.35 4yd Every Other Week $ - $ - 6.00% $ - $ - $ -
4yd x1 $ 191.41 $ 191.41 6.00% $ 11.48 $ 202.89 $ 202.89 4yd x2 $ 270.41 $ 270.41 6.00% $ 16.22 $ 286.63 $ 286.63 4yd x3 $ 349.66 $ 349.66 6.00% $ 20.98 $ 370.64 $ 370.64 4yd x4 $ 428.42 $ 428.42 6.00% $ 25.71 $ 454.13 $ 454.13 4yd x5 $ 507.70 $ 507.70 6.00% $ 30.46 $ 538.16 $ 538.16 6yd Every Other Week $ - $ - 6.00% $ - $ - $ -
6yd x1 $ 256.12 $ 256.12 6.00% $ 15.37 $ 271.49 $ 271.49 6yd x2 $ 355.83 $ 355.83 6.00% $ 21.35 $ 377.18 $ 377.18 6yd x3 $ 455.93 $ 455.93 6.00% $ 27.36 $ 483.29 $ 483.29 6yd x4 $ 555.30 $ 555.30 6.00% $ 33.32 $ 588.62 $ 588.62 6yd x5 $ 655.43 $ 655.43 6.00% $ 39.33 $ 694.76 $ 694.76 Commercial Organic Cart Service
Organics - Up to (2) two 64g Carts, 1x $ - $ - $ - $ - $ - Additional Organics 64g Cart, on same pickup, above
the two free - Multi-Family $ 18.02 $ 18.02 6.00% $ 1.08 $ 19.10 $ 19.10 Additional Organics 64g Cart, on same pickup, above
the two free - Commercial $ 22.92 0.317 1 4.33 $ 3.00 $ 4.12 $ 0.46 $ 4.58 6.7% $ 0.31 $ 4.89 $ 18.34 6.00% $ 1.10 $ 19.44 $ 24.33 Compactor Service (Cost Per Pull)
3yd Compactor x1 (Solid Waste), Monthly $ 596.23 7.500 1.0 4.33 $ 3.00 $ 97.43 $ 10.83 $ 108.26 6.7% $ 7.25 $ 115.51 $ 487.97 6.00% $ 29.28 $ 517.25 $ 632.76 6yd Compactor x1 (Solid Waste), Monthly $ 956.61 15.000 1.0 4.33 $ 3.00 $ 194.85 $ 21.65 $ 216.50 6.7% $ 14.51 $ 231.01 $ 740.11 6.00% $ 44.41 $ 784.52 $1,015.53 10yd Compactor x1 (Solid Waste), per pull $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 20yd Compactor x1 (Solid Waste), per pull $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 Cost Per Ton (Solid Waste) with GU for FF $ 64.45 $ 63.80 $ - $ 64.45 6.5% $ 4.19 $ 68.64 $ 68.64 3yd Compactor x1 (Recyclable Material) Monthly $ 204.06 $ 204.06 6.00% $ 12.24 $ 216.30 $ 216.30 6yd Compactor x1 (Recyclable Material), Monthly $ 227.18 $ 227.18 6.00% $ 13.63 $ 240.81 $ 240.81 10yd Compactor x1 (Recyclable Material), per pull $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 20yd Compactor x1 (Recyclable Material), per pull $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 Cost Per Ton (Recyclable Material) $ 144.51 $ 144.51 $ - $ 144.51 6.5% $ 9.39 $ 153.90 $ 153.90 Waste Management
City of Ridgecrest
2022-2023 Rate Schedule A B C D E F = B * C * D * E G = F * 10%/(1-10%) H = F + G I J = H * I K = H + J L = A - H M N = L * M O = L + N P = K + O 2022-2023 Rates Vol Freq/Wk Wks
Bin Fee
Rate per
Collected
Yard. OR
Disposal
Per Ton
Pre-Franchise
Fee Disposal
Portion of 2022-
2023 rate Franchise Fee
Disposal
Portion
including
FF
Disposal
Adjust %
Disposal
Adjust $
Post
Franchise
Fee
Adjusted
Disposal
Portion
Operating
Portion OCF
Operating
Portion
Adjust $
Adjusted
Operating
Portion
Proposed
2023-2024
Final Rate
On Call Roll Off Service (Cost Per Pull)
10yd Drop Box (Solid Waste/Organics) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 20yd Drop Box (Solid Waste/Organics) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 30yd Drop Box (Solid Waste/Organics) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 40yd Drop Box (Solid Waste/Organics) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 3yd Compactor (Solid Waste/Organics) $ 137.70 7.500 1 1.00 $ 3.00 $ 22.50 $ 2.50 $ 25.00 6.7% $ 1.68 $ 26.68 $ 112.70 6.00% $ 6.76 $ 119.46 $ 146.14 6yd Compactor (Solid Waste/Organics) $ 220.93 15.000 1 1.00 $ 3.00 $ 45.00 $ 5.00 $ 50.00 6.7% $ 3.35 $ 53.35 $ 170.93 6.00% $ 10.26 $ 181.19 $ 234.54 10yd Compactor (Solid Waste/Organics) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 20yd Compactor (Solid Waste/Organics) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 Cost Per Ton (Solid Waste) with GU for FF $ 64.45 $ 58.00 $ - $ 64.45 6.5% $ 4.19 $ 68.64 $ 68.64 10yd Drop Box (Recyclable Material) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 20yd Drop Box (Recyclable Material) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 30yd Drop Box (Recyclable Material) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 40yd Drop Box (Recyclable Material) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 3yd Compactor (Recyclable Material) $ 204.06 $ 204.06 6.00% $ 12.24 $ 216.30 $ 216.30 6yd Compactor (Recyclable Material) $ 227.18 $ 227.18 6.00% $ 13.63 $ 240.81 $ 240.81 10yd Compactor (Recyclable Material) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 20yd Compactor (Recyclable Material) $ 250.13 $ 250.13 6.00% $ 15.01 $ 265.14 $ 265.14 Cost Per Ton (Recyclable Material) $ 144.51 $ 144.51 $ - $ 144.51 6.5% $ 9.39 $ 153.90 $ 153.90 Cost Per Ton (C&D) $ 88.89 $ 88.89 $ - $ 88.89 6.5% $ 5.78 $ 94.67 $ 94.67 Other Services
Extra Bulky Waste Collection (beyond 3 per yr) $ 28.27 $ 28.27 6.00% $ 1.70 $ 29.97 $ 29.97 Extra Appliance or Bulky Waste Item Collection (beyond
1 per event) - per item $ 4.82 $ 4.82 6.00% $ 0.29 $ 5.11 $ 5.11 Extra Bulky Waste Collection Volume (beyond 3 yds per
event) $ 9.33 $ 9.33 6.00% $ 0.56 $ 9.89 $ 9.89
Commercial Contamination Fee, per cubic yard $ 30.53 $ 30.53 6.00% $ 1.83 $ 32.36 $ 32.36 On Property Service (Except Senior/Disabled) $ 46.96 $ 46.96 6.00% $ 2.82 $ 49.78 $ 49.78 Extra Can/Bag on Customer Service Day $ 4.82 $ 4.82 6.00% $ 0.29 $ 5.11 $ 5.11 Extra Can/Bag Not on Regular Service Day $ 9.33 $ 9.33 6.00% $ 0.56 $ 9.89 $ 9.89 Extra Pickup/Overage Charge (Commercial) per yard $ 32.58 1.000 1 1.00 $ 3.00 $ 3.00 $ 0.33 $ 3.33 6.7% $ 0.22 $ 3.55 $ 29.25 6.00% $ 1.76 $ 31.01 $ 34.56 Lock/Unlock $ 45.47 $ 45.47 6.00% $ 2.73 $ 48.20 $ 48.20 Steam Cleaning $ 120.71 $ 120.71 6.00% $ 7.24 $ 127.95 $ 127.95 This Page Intentionally Left Blank
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Resolution Of The Ridgecrest City Council Authorizing The City Manager To Enter Into A Memorandum Of Agreement With Sierra Sands Unified School District For Law Enforcement Services (School Resource Officer Program)
PRESENTED BY: Justin Dampier, Acting Chief of Police
SUMMARY:

For several years, the Ridgecrest Police Department has been providing law enforcement services to the Sierra Sands Unified School District (SSUSD) – School Resource Officer (SRO) Program. In 2013, a second SRO was added under a Department of Justice, COPS Hiring Program, which ended November 2016. SSUSD and the Police Department continued this second position to maintain services throughout the District.

SSUSD agrees to reimburse the City one-half of actual costs incurred by the City in employing the officers. Actual cost shall be defined as officer’s salary and benefits, including, but not limited to, health insurance, life insurance, dental insurance, vision insurance, PERS, educational incentive pay, uniform allowance, officer safety equipment, and overtime.

The agreement is attached to the resolution for your review as Exhibit A.

FISCAL IMPACT: (2) School Resource Officers – Reimbursed at 50% of actual costs (an estimated $165,000).

ACTION REQUESTED: Recommend approval by City Council authorizing the City Manager, or his designee, to enter into an agreement with the SSUSD for law enforcement services (School Resource Officer Program).

CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Captain Justin Dampier Action Date: July 19, 2023 This Page Intentionally Left Blank
RESOLUTION NO. 23-Xx

RESOLUTION OF THE RIDGECREST CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO ENTER INTO MEMORANDUM OF AGREEMENT WITH

SIERRA SANDS UNIFIED SCHOOL DISTRICT FOR LAW ENFORCEMENT SERVICES (School Resource Officer Program)
WHEREAS, the Sierra Sands Unified School District (SSUSD) and the City of Ridgecrest have agreed to enter into Memorandum of Agreement for the Police Department to continue to provide School Resource Officer services in the School District, and; WHEREAS, the School Resource Officer (SRO) Program provides law enforcement services to the district helping ensure there is a safe learning environment at the elementary, middle and high schools for the students, faculty and staff, and; WHEREAS, it is beneficial to both the City and SSUSD that this program continue to function, and;
WHEREAS, SSUSD agrees to reimburse the City 50% of actual costs of the School Resource Officer Program.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest authorize the City Manager, or his designee, to enter into an agreement with the Sierra Sands Unified School District to provide law enforcement services (School Resource Officer Program), including any amendments.

APPROVED AND ADOPTED THIS 19th day of July 2023, by the following vote.

AYES:

NOES:

ABSENT:

Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT:

Resolution Reaffirming and Approving the Annual Investment Policy PRESENTED BY:

Cheri Freese, Finance Director/City Treasurer
SUMMARY:

The Government Code of the State of California requires that they City Treasurer or Chief Financial Officer annually render a statement of investment policy to the City Council. The attached resolution adopts the City of Ridgecrest Annual Investment Policy.

The City complies with the State of California requirements of investing its funds according to the “Prudent Investor Standard”. This standard provides that when making investment decisions, the prudent investor shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

There have been no changes in the Investment Policy from last year.

FISCAL IMPACT:

None
ACTION REQUESTED:

Approve the attached resolution
CITY MANAGER’S RECOMMENDATION:

Action as requested
Submitted by: Cheri Freese Action Date: July 19, 2023
(Revised Jan2019)
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RESOLUTION NO. 23-Xx

A RESOLUTION OF THE RIDGECREST CITY COUNCIL ADOPTING
AND REAFFIRMING THE CITY’S ANNUAL STATEMENT OF

INVESTMENTS AND DELEGATING THE AUTHORITY TO MAKE SUCH

INVESTMENTS TO THE CITY TREASURER
WHEREAS, the State of California Government Code Section 53646 (a) requires the City Treasurer or Chief Financial Officer to annually render a statement of investment policy to the City Council;
NOW, THEREFORE, BE IT RESOLVED that:

1. The City Council of the City of Ridgecrest does hereby reaffirm and approve the City of Ridgecrest Annual Investment Policy herein attached as Exhibit A; and,

2. The Annual Investment Policy adopted herein; and,

3. The City Treasurer is hereby designated the authorized official to make all City Investments pursuant to the Government Code and City of Ridgecrest Investment Policy; and such designation shall remain in effect until rescinded.

APPROVED AND ADOPTED, this 19th day of July 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, CMC
City Clerk
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‘EXHIBIT A’

CITY OF RIDGECREST

INVESTMENT POLICY

1. Purpose
This statement is intended to establish the policies for prudent investment of the City’s funds, and to provide guidelines for suitable investments.

It is the policy of the City of Ridgecrest to invest public funds not required for immediate day-to-day operations in safe and liquid investments having a market-average rate of return while conforming to all state statutes governing the investment public funds. The ultimate goal is to enhance the economic status of the City while protecting its funds.

The investment policies and practices of the City of Ridgecrest are based upon Federal, State, and local law and prudent money management.

This statement is intended to provide direction for the investment of the City's temporary idle cash under the prudent investor rule. Civil code Section 2261, et seq. States in part "investing…for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion, and intelligence exercise in the management of their own affairs…"

2. Objectives
The primary objectives of the City’s investment policy are:
o Safety
o Liquidity
o Yield
The City strives to maintain the level of investment of all idle funds as near 100% as possible, through the optimum operation of its cash management system which is designed to accurately monitor and forecast expenditures and revenue. The City attempts to obtain the highest yield on its investment consistent with preservation of principal and liquidity and consistent with the cooperation of the City's operating departments in avoiding sudden cash withdrawals, loss of interest and possible penalties.

The “Prudent-Investor Standard” as defined in the Government Code of the State of California for liquidity, safety, and return shall guide the City’s investment policy. This objective provides that when making decision, the prudent investor shall act with care, skill, prudence, and diligence under the circumstances then prevailing, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency, thus realizing and optimizing the investment objectives of safety, liquidity, and yield.

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3. Funds to be Invested
This policy governs the prudent investment of all idle funds of the City of Ridgecrest.

City is defined as the City of Ridgecrest, the Redevelopment Agency, the Ridgecrest Public Financing Authority, Assessment Districts, as well as any future component units of the City, the Agency, or the Authority. Specifically, the funds under investment include:
▪ General Fund
▪ All Special Revenue Funds
▪ Capital Project Funds
▪ Enterprise Funds
▪ Trust & Agency Funds
▪ Bond Reserve Funds
▪ Trust & Agency Funds
▪ Any new funds that the City Council may create during the fiscal year

4. Delegation of Authority-Adoption of Policy
The City invests in the spectrum of instruments allowable under the Government Code Section 53600 et. seq. of the State of California. The City Council has delegated, by resolution, the authority to invest to the City Treasurer, subject to the limitations set forth in the Investment Policy. The City shall hold its public funds investor harmless for responsible transactions undertaken in accordance with the Investment Policy. The investment policy shall be annually rendered by the City Treasurer and be adopted by City Council resolution.

5. Investment Strategy & Diversification
To maximize returns, the economy and various markets are monitored carefully in order to assess the probable course of interest rates. The City lengthens its maturities when rates are falling and shortens maturities when rising. The City attempts to take advantage of imperfections in the market where a security's price is out of line with other investments, and tries to improve yields during contra cyclical changes in interest rates and through the purchase of occasional odd lots which are offered at bargain prices.

The City of Ridgecrest will diversify its investments by security type, institution, and maturity. The only exception is with the Local Agency Investment Fund. With the exception of U.S. Treasury securities and authorized investment pools no more than 50% of the City’s total investment portfolio may be with a single investment instrument or financial institution.

6. Selection of Financial Institutions
The Finance Director/City Treasurer (or designated staff) shall investigate all institutions that wish to do business with the City in order to determine if they are adequately capitalized, make markets in securities appropriate to the City’s needs, and agree to

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abide by the City’s Investment Policy. All financial that desire to become qualified bidders for investment transactions must complete City’s “Broker/Dealer Request for Information” and “Broker/Dealer Certification”.

The Finance Director/City Treasurer shall conduct an annual review of the financial condition and other qualifications of all approved financial institutions and broker/dealers to determine if they continue to meet the City’s guidelines for qualifications as defined in this section. Additionally, the City shall keep the current audited financial statements on file for each approved financial institution and broker dealer with which the City does business.

7. Investment Instruments
The City invests in the following investment instruments as approved by the California Government Code:

Securities of the U.S. Government, the State of California or any component units.

Local Agency Investment Fund (State of California) Demand Deposits.

Certificates of Deposit (Time Deposits) placed with commercial banks and savings and loan companies.

Bankers Acceptances.

Re-purchase Agreements.

Passbook Saving Account Demand Deposits.

Other investments that are, or may become, legal investments through the State of California Government Code and with prior approval of the City Council.
a. In addition to following all legal guidelines, the portfolio shall preserve principal, maintain adequate liquidity to meet all City obligations, contain an appropriate level of interest rate risk, and with the exception of the Local Agency Investment Fund (LAIF) be diversified across types of investments, maturities, and institutions to minimize credit risk and maintain an appropriate return. b. Repurchase Agreements – Master Repurchase Agreements Required Investments in repurchase agreements are allowable and shall be made only with financial institutions with which the City has an executed master repurchase agreement. The financial institution must be a primary dealer of the Federal Reserve Bank of New York.

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8. Investment Pools/Mutual Funds
A thorough investigation of any pooled investment funds, including mutual funds is required prior to investing, on a continual basis. To accomplish this a questionnaire will be used to evaluate the suitability of the pooled fund. The questionnaire will answer the following general questions:
o A description of eligible investment securities, and a written statement of investment policies and objectives;
o A description of interest calculations and how it is distributed, and how gains and losses are treated.
o A description of how the securities are safeguarded (including the settlement processes) and how often the securities are priced and the program audited; o A description of who may invest in the program, how often, and what size deposit and withdrawal is allowed;
o A schedule for receiving statements and portfolio listings; o Are reserves, retained earnings, etc. utilized by the pool/fund? o A fee schedule and when and how the fees are assessed; o Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

9. Policy Criteria for Selecting Investment, in Order of Priority A. Safety
Safety and the minimizing of risk associated with investing refers to attempts to reduce the potential for loss of principal, interest or a combination of the two. The first level of risk control is found in state law, which restricts the particular type of investments permissible for municipalities. The second level of risk control is reduction of default risk by investing in instruments that appear upon examination to be the most credit worthy.

The third level of risk control is reduction of market risk by investing in instruments that have maturities coinciding with planned dates of disbursement, thereby eliminating risk of loss from a forced sale.

B. Liquidity
Liquidity refers to the ability to easily sell at any time with a minimal risk of losing some portion of principal or interest. Liquidity is an important quality for an investment to have, for at any time the City may have unexpected or unusual circumstances that result in larger disbursements than expected, and some investments may need to be sold to meet the contingency. Most investments of the City are highly liquid, with the exception of Time Certificates of Deposits issued by banks and savings and loans companies.

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Maturity dates for Time Certificates of Deposits shall be selected in anticipation of disbursement needs, thereby obviating the need for forced liquidation or lost interest penalties.

C. Yield
Yield is the potential dollar earnings as investment can provide, and also is sometimes described as the rate of return. The City attempts to obtain the highest yield possible when selecting an investment, provided that the criteria stated in the Investment Policy for safety and liquidity are met.

7. Policy Constraints
The City operates its investment program with many State and self-imposed constraints.

It does not speculate; its does not buy stock or corporate bonds; its does not deal in futures or options; it does not purchase on margin through Reverse Re-purchase Agreements. The weighted average life of the portfolio is maintained within limits dictated by the cash flow needs of the City. The City diversifies its investment to reduce potential default on market risks. The portfolio is carefully monitored to assure the prudent management of the portfolio.

8. Selection of Investment Contracts
The City determines those firms (broker, broker/dealers, banks, and savings and loans) with which it will do investment business based on the following criteria:

A. Being authorized under California Government Code Section 53635.5 to transact investments within local agencies.

B. Receipt of a positive, audited financial statement. The City Treasurer shall annually review the financial condition and registrations of qualified financial institutions and
brokers/dealers with whom the City/Agency/Authority does business.

C. Being in business for a minimum of seven years in the State of California as evidence as appropriate experience in California.

D. These may include primary dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1.

E. Other rules and regulations as may from time to time be either enacted by State law or administrative necessity as determined by the City Treasurer.

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9. Safekeeping & Collateralization
Securities purchased from broker/dealers (if any) shall be held in third party safekeeping by the trust department of the City's bank or other designated third party trust, in the City's name and control.

Collateralization shall be required on certificates of deposits and repurchase agreements. In order to anticipate market changes and provide for a level of security for all funds, the collateralization level will be 105% of market value of principal and accrued interest or the minimum required in the California Government Code (whichever is greater). Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. Collateral substitution is granted with the written approval of the City Treasurer.

All securities will be received and delivered using a delivery vs. payment basis, which ensures that securities are deposited with the third party custodian prior to the release of funds. Securities will be held by a third party custodian as evidenced by safekeeping receipts. Investments in the Local Agency Investment Fund or mutual funds are undeliverable and are not subject to delivery or third party safekeeping.

10. Investment Controls & Investment Procedures
The City has a System of Internal Investment Controls and a Segregation of responsibilities of Investment Functions. All requests for investment transactions are over the signatures of any two of the following four city officials: 1) Treasurer, 2) City Manager, 3) Mayor, and 4) Deputy City Treasurer. In the absence of the City Treasurer, the Deputy City Treasurer, or the City Manager, as designated by the City Treasurer will act as the Treasurer and will make the investment decisions (normally based on the criteria outlined by the Treasurer prior to his departure on business or vacation).

The City Treasurer shall establish a separate written investment procedures manual for the operation of the investment program consistent with this policy. The procedures should explicitly include reference to: safekeeping, wire transfer agreements, banking service contracts, cash flow forecasting, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.

11. Investment Reports
A. The Treasurer annually renders a Statement of Investment Policy to the City Council for their approval.

B. The Treasurer renders an investment report at the frequency

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dictated by State law, to the City Manager and City Council showing
the type of investment, institution, date of maturity, amount of deposit, current market value for all securities with a maturity of more than 12 months, rate of interest, specifying in detail each investment in Re-purchase Agreements, and such other date as may be required by the City.

C. The Investment Report states its relationship to the Statement of Investment Policy by indicating each and every instance that there is a divergence from of violation of Policy or stating that the report is in compliance with the approved Statement of Investment Policy.

12. Investment Audits
Annually, the City Council reviews and evaluates the investment program and updates the Statement of Investment Policy. The City's auditor will include in the scope of the audit investments executed, matured, and ongoing. Appropriate City staff will assist the Treasurer in confirming the accuracy of his reports and will confirm correlation with City's system of accounts.

13. Benchmark Standard
The benchmark for the portfolio is the 6-month T-Bill rate.

14. Ethics & Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Any potential conflicts shall be disclosed to the City Treasurer, City Manager, or the City Attorney.

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GLOSSARY
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR):

The official annual report for the City of Ridgecrest. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

ASKED: The price at which securities are offered.

BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit, or other property that a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus

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payment is delivery of securities with an exchange of money for the securities.

Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g. U.S.

Treasury Bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, smallbusiness firms, students, farmers, farm cooperatives, and exporters.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit.

FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded.

This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (FHLB):

Government sponsored wholesale banks (currently 12 regional banks) that lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second

Page 10 of 13 ends

loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FmHA mortgages. The term “passthroughs” is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase—reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

Page 11 of 13 ends

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

OFFER: The price asked by a seller of securities. See Asked and Bid.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight.

Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms.

PRUDENT INVESTOR RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions.

Exception: When the Fed is said to be doing RP, it is lending money that is, increasing bank reserves.

Page 12 of 13 ends

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SEC RULE 15C3-1: See Uniform Net Capital Rule.

STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S.

Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

TREASURY NOTES: Medium-term coupon bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

Page 13 of 13 ends

YIELD: The rate of annual income return on an investment, expressed as a percentage.
(a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security.
(b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: A Resolution Approving The Project List For Fiscal Year 2023-2024 For The California State Of Good Repair (SGR) Program For The Following Project: Electric Transit Van Replacement
PRESENTED BY: Christopher Smith, Transit Services Coordinator SUMMARY:

The Road Repair and Accountability Act of 2017, Senate Bill (SB) 1 (Chapter 5, Statues of 2017), signed by the Governor on April 28, 2017, includes a program that provides additional revenues for transit infrastructure repair and service improvements. This investment in public transit will be referred to as the State of Good Repair Program.

The Transit Division has and estimated allocation of Forty-Nine Thousand and Eighteen dollars ($49,018) for the State of Good Repair Program.

It is the recommendation of staff that these funds be used in conjunction with future Low Carbon Transit Operations Program (LCTOP) funds to replace one or more current 29-foot, gasoline-powered cutaway buses with battery electric transit vans. The smaller sized vehicle is more suited to meet current service demands and is in line with state requirements that transit services begin transitioning to zero emission vehicles beginning in 2026 and being fully transitioned by 2040. Vehicles purchased prior to the 2026 milestone will be counted towards required zero emission purchasing ratios. Additionally, staff seeks to use the battery electric vehicle transition in conjunction with the solar power project at the City’s Corpyard to reduce Transit Division expenditures and by extension lower funds needed to supplement required farebox recovery ratios.

FISCAL IMPACT: Provides $49,018 in state funding for capital projects within the Transit Division.

ACTION REQUESTED: Approve a Resolution Approving The Project List For Fiscal Year 2023-2024 For The California State Of Good Repair (SGR) Program for the following project: Electric Transit Van Replacement
CITY MANAGER’S RECOMMENDATION:

Submitted by: Christopher Smith, Transit Services Coordinator Action Date: July 19, 2023 (Revised Jan2019)
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City of Ridgecrest
RESOLUTION #23-XX
APPROVING THE PROJECT LIST FOR FY 2023-2024
FOR THE CALIFORNIA STATE OF GOOD REPAIR PROGRAM:

ELECTRIC TRANSIT VAN PURCHASE
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, established the State of Good Repair (SGR) program to fund eligible transit maintenance, rehabilitation and capital project activities that maintain the public transit system in a state of good repair; and,
WHEREAS, SGR funds are allocated by the Kern Council of Governments; and, WHEREAS, the City of Ridgecrest‘s share of SGR funds for fiscal year 2023-24 is estimated to be $49,018; and,
WHEREAS, these SGR funds will be used in the future for purchase of an electric transit van; and,
WHEREAS, in order to qualify for these funds, the City of Ridgecrest is required to submit a proposed project list to California Department of Transportation (Caltrans) on an annual basis.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby:

1. Approves the aforementioned project as the SB1 State of Good Repair Project List for FY 2023-2024; and

2. Agrees to comply with all conditions and requirements set forth in the Certification and Assurances document and applicable statutes, regulations and guidelines for all SGR.

3. Authorizes the Transit Services Coordinator to submit a request for Scheduled Allocation of the State of Good Repair funds and to execute the related grant applications, forms and agreements.

ADOPTED, AND APPROVED, this 19
th day of July 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________________
Eric Bruen, Mayor
ATTEST:
__________________________________
Ricca Charlon, City Clerk
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FY 2023/2024
Agency Project Description 99313 99314 Total apportionment Project Amount Arvin $35,161 $685 $35,846 $0
California City $22,553 $284 $22,837 $0
Delano $81,568 $3,081 $84,649 $0
GET $882,844 $64,861 $947,705 $0
Kern Transit $260,421 $13,174 $273,595 $0
McFarland $22,431 $134 $22,565 $0
Ridgecrest $47,262 $1,756 $49,018 $0
Shafter $32,659 $635 $33,294 $0
Taft $11,407 $3,971 $15,378 $0
Tehachapi $19,179 $312 $19,491 $0
Wasco $42,829 $351 $43,180 $0
Regional Totals $1,458,314 $89,244 $1,547,558 $0
Regional Surplus
State of Good Repair Draft Program Program
of Projects
Regional Surplus Amt.
$0
Attachment "A"
Kern County
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Authorization For The City Manager, Ron Strand To Sign The Notice Of Completion For The Replacement Of The Existing Partitions Located At The Kerr McGee Community Center, For The City Clerk To File The Notice Of Completion And For City Staff To Release Retention In The Amount Of $43,470.55 To The Contractor Horizons Construction Company Within Thirty (30) Days After Recordation Of The Notice Of Completion
PRESENTED BY: Nerissa Wegener, Parks and Recreation Director SUMMARY:

The Contractor, Horizons Construction Company has finished the project that consisted of replacing the flooring in the Kerr McGee Community Center located at 100 W. California Ave, with the work being completed on June 8, 2023.

With the work being completed, and with the exception of the 5% retention in the amount of $43,470.55; the Contractor, Horizons Construction Company has been paid in full.

The City Staff will authorize release of retention within thirty (30) days from the filing of the Notice of Completion as long as no claims have been filed against the retained funds and the City of Ridgecrest has accepted all work.

FISCAL IMPACT: Impact to the American Rescue Plan Act Funds in the amount of $869,410.94.

ACTION REQUESTED:

1. Authorizes the City Manager to sign the Notice of Completion

2. Authorizes the City Clerk to file the Notice of Completion

3. Authorizes City Staff to release retention in the amount of $43,470.55 to the Contractor, Horizons Construction Company within thirty (30) days after recordation of the Notice of Completion provided no claims have been filed against said retained funds.

CITY MANAGER’S RECOMMENDATION: Action as Requested
Submitted by: Nerissa Wegener Action Date: July 19, 2023 (Revised Jan2019)
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RESOLUTION NO. 23-Xx

AUTHORIZATION FOR THE CITY MANAGER, RON STRAND TO SIGN

THE NOTICE OF COMPLETION FOR THE REPLACEMENT OF THE

EXISTING PARTITIONS LOCATED AT THE KERR MCGEE

COMMUNITY CENTER, FOR THE CITY CLERK TO FILE THE NOTICE

OF COMPLETION AND FOR CITY STAFF TO RELEASE RETENTION IN THE AMOUNT OF $43,470.55 TO THE CONTRACTOR HORIZONS
CONSTRUCTION COMPANY WITHIN THIRTY (30) DAYS AFTER

RECORDATION OF THE NOTICE OF COMPLETION
WHEREAS, The Contractor, Horizons Construction Company has finished the project that consisted of replacing the flooring in the Kerr McGee Community Center located at 100 W.

California Ave, with the work being completed on June 8, 2023; and, WHEREAS, With the work being completed, and with the exception of the 5% retention in the amount of $43,470.55; the Contractor, Horizons Construction Company has been paid in full; and,
WHEREAS, the City Staff will authorize release of retention within thirty (30) days from the filing of the Notice of Completion as long as no claims have been filed against the retained funds and the City of Ridgecrest has accepted all work.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby:

1. Authorizes the City Manager to sign the Notice of Completion

2. Authorizes the City Clerk to file the Notice of Completion

3. Authorizes City Staff to release retention in the amount of $43,470.55 to the Contractor, Horizons Construction Company within thirty (30) days after recordation of the Notice of Completion provided no claims have been filed against said retained funds.

APPROVED AND ADOPTED this 19th day of July 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________
Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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Recording Requested By:

CITY OF RIDGECREST
When Recorded Mail to:

City of Ridgecrest
City Clerk
100 West California Avenue
Ridgecrest, CA 93555

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is OWNER or Agent of the OWNER of the interest or estate stated below in the property hereinafter described.

2. The FULL NAME of the OWNER is City of Ridgecrest

3. The FULL ADDRESS of the OWNER is 100 West California Avenue, Ridgecrest, CA 93555

4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: In Fee. (if other than fee, Strike "In Fee" and insert, for example, "Purchaser under contract of purchase," or "Lessee.")

5. The FULL NAMES and FULL ADDRESSES of ALL PERSONS, if any, WHO HOLD SUCH INTEREST or ESTATE with the undersigned as JOINT TENANTS IN COMMON are:

Names Addresses

6. The full names and full addresses of the predecessors in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

7. A work of improvement on the property hereinafter described was COMPLETED June 8, 2023

8. The work of improvement completed is described as follows: Replace the existing Partitions in the Kerr McGee Center.

9. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: Horizons Construction Company

10. The street address of said property is: 100 W. California Ave

11. The property on which said work of improvement was completed is in the City of Ridgecrest County of Kern, State of California, and is described as follows:

Kerr McGee Community Center

Date Ronald Strand, City Manager
Verification for INDIVIDUAL owner
I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the owner of the aforesaid interest or estate in the property described in the above notice; that I have said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place Signature of Owner named in paragraph 2
Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Manager of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place Ronald Strand, City Manager
SUBSCRIBED AND SWORN TO before me on
Ricca Charlon, City Clerk Revised 9/22/2003

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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Authorization For The City Manager, Ron Strand, To Sign The Notice Of Completion For The Painting Of The Caps On The City Hall And Kerr McGee Community Center, For The City Clerk To File The Notice Of Completion And For City Staff To Release Retention In The Amount Of $2,568.75 To The Contractor, KC Martin Construction, Within Thirty (30) Days After Recordation Of The Notice Of Completion PRESENTED BY:

Nerissa Wegener, Parks and Recreation Director
SUMMARY: T
he Contractor, KC Martin Construction has finished the project that consisted of painting the roof caps on City Hall and the Kerr McGee Community Center located at 100 W. California Ave, with the work being completed on June 30, 2023.

With the work being completed, and with the exception of the 5% retention in the amount of $2,568.75; the Contractor, KC Martin Construction has been paid in full.

The City Staff will authorize release of retention within thirty (30) days from the filing of the Notice of Completion as long as no claims have been filed against the retained funds and the City of Ridgecrest has accepted all work.

FISCAL IMPACT: General fund FY23 budget project in the amount of $51,375.

ACTION REQUESTED:

1. Authorizes the City Manager to sign the Notice of Completion

2. Authorizes the City Clerk to file the Notice of Completion

3. Authorizes City Staff to release retention in the amount of $2,568.75 to the Contractor, KC Martin Construction within thirty (30) days after recordation of the Notice of Completion provided no claims have been filed against said retained funds.

CITY MANAGER’S RECOMMENDATION: Action as Requested
Submitted by: Nerissa Wegener Action Date: July 19, 2023 (Revised Jan2019)
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RESOLUTION NO. 23-Xx

AUTHORIZATION FOR THE CITY MANAGER, RON STRAND TO SIGN

THE NOTICE OF COMPLETION FOR THE PAINTING OF THE CAPS ON

THE CITY HALL AND KERR MCGEE COMMUNITY CENTER, FOR THE

CITY CLERK TO FILE THE NOTICE OF COMPLETION AND FOR CITY STAFF TO RELEASE RETENTION IN THE AMOUNT OF $2,568.75 TO THE CONTRACTOR KC MARTIN CONSTRUCTION WITHIN THIRTY (30)

DAYS AFTER RECORDATION OF THE NOTICE OF COMPLETION
WHEREAS, The Contractor, KC Martin Construction has finished the project that consisted of painting the roof caps on City Hall and the Kerr McGee Community Center located at 100 W. California Ave, with the work being completed on June 30, 2023; and, WHEREAS, with the work being completed and, with the exception of the retention amount of two thousand five hundred sixty-eight dollars and seventy-five cents ($2,568.75) the Contractor KC Martin Construction has been paid in full; and, WHEREAS, the City Staff will authorize release of retention within thirty (30) days from the filing of the Notice of Completion as long as no claims have been filed against the retained funds and the City of Ridgecrest has accepted all work.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Ridgecrest hereby:

1. Authorizes the City Manager to sign the Notice of Completion; and

2. Authorizes the City Clerk to file the Notice of Completion for recordation for Kerr McGee Floor Replacement Project; and

3. Authorizes City Staff to release retention in the amount of five thousand sixty-nine dollars and forty cents. ($2,568.75) to the Contractor, KC Martin Construction within thirty (30) days after recordation of the Notice of Completion provided no claims have been filed against said retained funds.

APPROVED AND ADOPTED this 19th day of July 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Eric Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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Recording Requested By:

CITY OF RIDGECREST
When Recorded Mail to:

City of Ridgecrest
City Clerk
100 West California Avenue
Ridgecrest, CA 93555

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is OWNER or Agent of the OWNER of the interest or estate stated below in the property hereinafter described.

2. The FULL NAME of the OWNER is City of Ridgecrest

3. The FULL ADDRESS of the OWNER is 100 West California Avenue, Ridgecrest, CA 93555

4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: In Fee. (if other than fee, Strike "In Fee" and insert, for example, "Purchaser under contract of purchase," or "Lessee.")

5. The FULL NAMES and FULL ADDRESSES of ALL PERSONS, if any, WHO HOLD SUCH INTEREST or ESTATE with the undersigned as JOINT TENANTS IN COMMON are:

Names Addresses

6. The full names and full addresses of the predecessors in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

7. A work of improvement on the property hereinafter described was COMPLETED June 30, 2023

8. The work of improvement completed is described as follows: Painting of the caps on City Hall and the Kerr McGee Community Center

9. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: Bentley Mills Inc.

10. The street address of said property is: 100 W. California Ave

11. The property on which said work of improvement was completed is in the City of Ridgecrest County of Kern, State of California, and is described as follows:

Kerr McGee Community Center and City Hall

Date Ronald Strand, City Manager
Verification for INDIVIDUAL owner
I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the owner of the aforesaid interest or estate in the property described in the above notice; that I have said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place Signature of Owner named in paragraph 2
Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Manager of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place Ronald Strand, City Manager
SUBSCRIBED AND SWORN TO before me on
Ricca Charlon, City Clerk Revised 9/22/2003
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Proposed Approval of Increased Appropriations to the Fiscal Year 2023-2024 Budget for the Human Resources/Risk Management Internal Service Fund (ISF) PRESENTED BY: Cheri Freese, Finance Director
SUMMARY: The Human Resources and Risk Management Internal Service Fund (ISF), also called the Self-Insurance Fund, is used to account for the costs of the City’s risk management and self-insurance programs. The Human Resources/Risk Management ISF is essential for managing the city's workforce and mitigating risks. However, the City faces challenges due to an unanticipated rise in insurance premiums and an increased number of employment separations.

The projected insurance premiums for FY23-24 were based on historical data and industry trends. Unfortunately, the City encountered an unexpected increase in premiums, not accounted for in the original budget. This rise is mainly attributed to external factors such as changes in the insurance market.

The City has also experienced an elevated number of unplanned employment separations which were not initially anticipated during the budget preparation. These employment separations resulted in additional costs for leave cash out.

To address these challenges, staff is requesting increased appropriations for the Human Resources/Risk Management ISF for FY23-24. The requested funds will cover the unbudgeted increase in insurance premiums and the costs associated with unplanned employment separations.

These additional funds will be sourced from the existing fund reserves estimated at $1.9 million during the FY24 budget process. Utilizing the reserves demonstrates prudent management of resources and preserves financial stability.

Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
FISCAL IMPACT: $265,000 of the reserve funds in the Human Resources/Risk Management ISF
ACTION REQUESTED: Approval of increased appropriations as requested CITY MANAGER’S RECOMMENDATION:

Action as requested
Submitted by: Cheri Freese Action Date: July 19, 2023
(Revised Jan2019)
RESOLUTION NO. 23-XX

A RESOLUTION OF THE RIDGECREST CITY COUNCIL APPROVING A

BUDGET AMENDMENT INCREASING APPROPRIATIONS IN THE

ANNUAL BUDGET
WHEREAS, the City Council of the City of Ridgecrest has duly adopted its annual budget per resolution; and,
WHEREAS, Resolution 23-32 spells out the circumstances whereby total fund appropriations may be, and can be, increased; and,
WHEREAS, the adopted budget for Insurance Premium and Employment Separations for fiscal year 2023-2024 are $485,000 and $329,886, respectively; and, WHEREAS, the City has an unexpected increase in insurance premiums and unplanned employment separations for the fiscal year; and, WHEREAS, the City is going to need an additional $65,000 for the insurance premium, and an additional $150,000 for the unplanned employment separations; and, WHEREAS, the additional funds needed are available in the existing fund reserves.

NOW, THEREFORE, BE IT RESOLVED, the appropriation budget adjustments as listed below are herein approved:
➢ 410.00.1150.5104.300 - $65,000
➢ 410.00.1580.5001.307 - $60,000
➢ 410.00.1580.5001.308 - $50,000
➢ 410.00.1580.5001.309 - $500
➢ 410.00.1580.5001.318 - $80,000
➢ 410.00.1580.5001.319 - $2,500
➢ 410.00.1580.5002.300 - $5,500
➢ 410.00.1580.5002.302 - $1,500
APPROVED AND ADOPTED, this 19th day of July 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, City Clerk
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Discussion And Proposed Action To Approve A Resolution Designating A Voting Member And Alternate(s) To Attend The League Of California Cities Annual Conference And Represent The City Of Ridgecrest
PRESENTED BY: Ricca Charlon, CMC - City Clerk
SUMMARY:

The League’s 2023 Annual Conference is scheduled for September 20-22, 2023 in Sacramento, California.

An important part of the Annual Conference is the Annual Business Meeting (during General Assembly). At this meeting, the League membership considers and takes action on resolutions that establish League policy.

In order to vote at the Annual Business Meeting, the City Council must designate a voting delegate. The City may also appoint up to two alternate voting delegates, one of whom may vote in the event that the designated voting delegate is unable to serve in that capacity Council will discuss and select a voting delegate and alternate voting delegates to serve as our voice at the League of California Cities annual business meeting.

FISCAL IMPACT: None
ACTION REQUESTED: Approve a resolution designating a voting delegate and alternate voting delegate(s) to attend the annual business meeting of the League of California Cities.

CITY MANAGER’S RECOMMENDATION:

Submitted by: Ricca Charlon Action Date: July 19, 2023
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RESOLUTION NO. 23-Xx

A RESOLUTION OF THE RIDGECREST CITY COUNCIL DESIGNATING

VOTING DELEGATES AND ALTERNATES FOR THE LEAGUE OF

CALIFORNIA CITIES ANNUAL CONFERENCE
WHEREAS, the League of California Cities hosts an Annual Conference; and, WHEREAS, business meetings and actions occur at this conference; and, WHEREAS, the conference will be held September 20-22, 2023 in Sacramento, Ca; and,
WHEREAS, the City Council must approve voting delegates by adoption of resolution.

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Ridgecrest hereby designates ___________________ as the voting delegate and appoints ____________________ as the first alternate voting delegate.

APPROVED AND ADOPTED, this 19th day of July, 2023 by the following vote:

AYES:

NOES:

ABSENT:

Eric A. Bruen, Mayor
ATTEST:

Ricca Charlon, CMC
City Clerk
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Sixty days before the
Annual Conference and
Expo, Cal Cities members
may submit policy
proposals on issues of
importance to cities. The
resolution must have the concurrence
of at least five additional member cities
or individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions
Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure that we are representing California cities with one voice. These policies directly guide Cal Cities advocacy to promote local decision-making, and lobby against statewide policy that erodes local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how Resolutions and the General Assembly works.

The petitioned resolution
is an alternate method
to introduce policy
proposals during the
annual conference. The
petition must be signed by
voting delegates from 10% of member
cities, and submitted to the Cal Cities
President at least 24 hours before the
beginning of the General Assembly.

Petitioned Resolutions
The Cal Cities President
assigns general resolutions
to policy committees where
members review, debate,
and recommend positions for
each policy proposal. Recommendations are
forwarded to the Resolutions Committee.

Who’s who
The Resolutions
Committee includes
representatives from
each Cal Cities diversity
caucus, regional
division, municipal
department, policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly
is a meeting of the
collective body of
all voting delegates —
one from every
member city.

Seven Policy
Committees meet
throughout the year to
review and recommend
positions to take on
bills and regulatory
proposals. Policy
committees include
members from each Cal
Cities diversity caucus,
regional division,
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions Committee.

Potential Cal Cities bylaws amendments are also
considered at this meeting.

Cal Cities policy
development is a
member-informed
process, grounded
in the voices and
experiences of city
officials throughout
the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions Committee
considers all resolutions.

General Resolutions approved1
by either a policy committee
or the Resolutions Committee
are next considered by the General
Assembly. General resolutions not approved,
or referred for further study by both a policy
committee and the Resolutions Committee
do not go the General Assembly. All
Petitioned Resolutions are considered by the
General Assembly, unless disqualified.2
• Voting delegates will receive increased communications to prepare them for their role during the General Assembly.
• The General Assembly will take place earlier to allow more time for debate and discussion.
• Improvements to the General Assembly process will make it easier for voting delegates to discuss and debate resolutions.

What’s new in 2023?
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).

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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT: Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA)
PRESENTED BY:

L. Scott Hayman, City Council / IWVGA Representative
SUMMARY:

Report and discussion regarding Board meetings of the IWVGA. Including, Board discussion and consideration of issues of importance requiring action by the IWVGA.

FISCAL IMPACT: None
ACTION REQUESTED: Discuss
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: July 19, 2023
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SUBJECT: A Resolution To Approve The Professional Service Agreement With Willdan Engineering For An Amount Not To Exceed $578,021 For Preliminary/Construction Engineering Services For The Affordable Housing Sustainable Communities Grant Project; And Authorize The City Manager To Sign The Agreement
PRESENTED BY: Travis Reed, Public Works Director
SUMMARY:

The City of Ridgecrest has been awarded an Affordable Housing Sustainable Communities Grant for $4,017,000. Of this $394,000 is dedicated to engineering services such as Design, Environmental and Constructing Inspection and Management. An RFQ was solicited to our three on-call firms to which we received 1 reply, Willdan. Currently, Willdan Engineering holds numerous Preliminary and Construction Engineering Projects for the City and Staff Feels with the Projects coming in the near future bundling these services could help save money across all projects.

The AHSC Project includes, but is not limited to:

1. Landscape and Xeriscape at City Hall

2. ADA Accessibility upgrades

3. Bus Shelter upgrades

4. Installation of two new Bus Shelters

5. Construction of Curb, Gutter, Sidewalk and Drive approaches in Various Locations

6. Street Lighting

7. Pedestrian Hybrid Beacons at numerous intersections, with signal warrant studies

8. Hot Mix asphalt Paving

9. Channel Concrete/Soil Cement Lining

10.Bike Lane Gap Closures

11.ROW Acquisition

12.Numerous new Bike Lane Installations.

The consultant fee for the project is $578,021.00, of which $313,443.00 is for Preliminary Engineering, and $264,578.00 is for Construction Engineering. Staff feels the fee is fair for the task at hand, as it represents about 11% of the total project cost. Additionally, the grant will fund $394,000.00 of this fee, or 68% +/-.

The funding for both construction and engineering services will be from Measure V initially and then shall be billed after work is performed and paid. For a more detailed list of projects, see the Willdan Proposal Attached to this Item.

Staff recommends that the City Council approves the project and authorizes the City Manager to execute the agreement with Willdan Engineering.

FISCAL IMPACT: $578,021.00 for all Engineering services associated with the project.

ACTION REQUESTED:

1. Award a Professional Services Agreement to Willdan Engineering for Engineering Services for the AHSC Infrastructure Improvement Project.

2. Authorize the Finance Director to amend the budget to reflect all appropriate capital, revenue, transfer accounts, and create a purchase order for $578,021.00 for Engineering Services.

3. Authorize the City Manager to execute the Contract for Engineering Services in the amount of $578,021.00 for the AHSC Infrastructure Improvement Project.

CITY MANAGER RECOMMENDATION:

Submitted by: Travis Reed Action Date: July 19
th, 2023
RESOLUTION NO. 23-Xx

Page 1 of 2 ends

A RESOLUTION TO APPROVE THE PROFESSIONAL SERVICE

AGREEMENT WITH WILLDAN ENGINEERING FOR AN AMOUNT NOT TO EXCEED $578,021 FOR PRELIMINARY/CONSTRUCTION ENGINEERING

SERVICES FOR THE AFFORDABLE HOUSING SUSTAINABLE
COMMUNITIES GRANT PROJECT; AND AUTHORIZE THE CITY MANAGER

TO SIGN THE AGREEMENT
WHEREAS, The City of Ridgecrest has been awarded an Affordable Housing Sustainable Communities (AHSC) Grant in the amount of $4,017,000.00; and, WHEREAS, The City of Ridgecrest solicited RFQ’s and one engineering firm Responded; and,
WHEREAS, City Staff has selected Willdan Engineering to provide Preliminary and Construction Engineering Services; and,
WHEREAS, The City of Ridgecrest requires professional environmental, design and construction engineering services for the AHSC Construction Project; and, WHEREAS, the proposed Engineering Services are on a time and materials basis for a not to exceed fee; and,
WHEREAS, the services are for all environmental, design and construction engineering management services for a Grant and Locally funded project including but not limited to: environmental, design, cost estimates, bidding assistance, shop drawing review, RFI’s, certified payroll monitoring, labor compliance, progress billing, inspection, change orders, contract administration, conflict resolution and materials testing; and WHEREAS, the proposed time and materials not to exceed fee for the project is $578,021.00; and,
WHEREAS, the proposed AHSC Funds shall be complimented by budgeted Measure V funds in the amount of $1,000,000.00; and,
WHEREAS, a purchase order will be issued to Willdan Engineering for $578,021.00 for all Engineering Services; and,

NOW, THEREFORE, BE IT RESOLVED THAT

1. Award a Professional Services Agreement to Willdan Engineering for Engineering Services for the AHSC Infrastructure Project.

2. Authorize the Finance Director to amend the budget to reflect all appropriate capital, revenue and transfer accounts and create a purchase order in the amount of $578,021.00 for Engineering Services.

Resolution 23-Xx Page 2 of 2

3. Authorize the City Manager to execute the Contract for Engineering Services in the amount of $578,021.00 for the AHSC Project.

APPROVED AND ADOPTED this 19
th day of July 2023 by the following vote.

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________
Eric Bruen, Mayor
ATTEST:
________________________________
Ricca Charlon, City Clerk
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CONSULTANT AGREEMENT
Professional Services
Engineering Services
Willdan Engineering
THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter “Agreement”) is made and entered into as of July 19, 2023 (“Effective Date”) by and between the CITY OF RIDGECREST, a California municipal corporation (hereinafter “City”) and WILLDAN ENGINEERING (hereinafter “Consultant”). City and Consultant agree as follows:

1. Purpose.
(a) Consulting services for Affordable Housing Sustainable Communities Infrastructure Improvement Project. An AHSC Grant Project. (b) Consultant represents that it is trained, experienced, competent, and qualified to perform the professional services required by this Agreement.

2. Services.
(a) Consultant agrees to perform the services and tasks set forth in the attached Exhibit “A” (hereinafter the “Scope of Services”). Consultant shall provide all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform these services and work. (b) Services and work provided by Consultant under this Agreement shall be performed in a timely and diligent manner and shall be consistent with all requirements and standards established by applicable Federal, State, and local laws and regulations, and professional standards.
(c) Consultant shall not perform any services under this Agreement without first receiving a work order or equivalent notice to proceed in writing from a designated representative of the City. Such work orders shall include the following information:
(1) A description of the specific task requested and other information the City deems necessary and relevant to the request.
(2) A timeline and any applicable deadlines.
(d) Consultant shall report progress of work on a monthly basis or as directed.

Consultant shall submit a project schedule using Microsoft Project’s project management software with a narrative of tasks performed and tasks planned for the next month.

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3. Consideration.
(a) City shall compensate Consultant for its services as follows: the total compensation for preliminary and construction engineering services (time and material based) shall not exceed the sum of $578,021.00.
(b) The Consultant shall complete and submit monthly invoices showing project name, date of work, purchase order number, Caltrans Project Number, invoice number, original contract amount, current invoice amount, total billed to date, remaining contract balance, percentage of work completed, narrative of work completed and of work to be performed, revised project schedules, description of tasks, personnel assigned to task, job title of personnel, and supporting documentation. (c) Consultant shall submit its final invoice within 45 days after the date the Notice of Completion is issued.
(d) Consultant’s invoices shall be in writing and delivered to the City Manager at the City’s address set forth in Section 19 hereinbelow. The City shall, within 30 days after receiving such invoice, review and pay all approved charges thereon.

4. Term.

This Agreement shall commence upon City’s written authorization to proceed and shall continue until completion of the Scope Services or upon earlier termination in accordance with this Agreement. Either party may terminate this Agreement on 15 days’ written notice. If this Agreement is terminated by City without cause, City shall pay Consultant for work performed prior to the date the notice of termination is received by Consultant. If the Agreement is terminated by Consultant without cause, Consultant shall reimburse City for additional costs to be incurred by City in obtaining the work from another consultant.

5. Ownership of Data, Reports, and Documents.

The Consultant shall deliver to the City on demand or completion of the project, both digitally, (in the original file format of the software in which prepared), and hard copy, notes of surveys made, reports of tests made, studies, reports, plans, and other materials and documents which shall be the property of the City. If the City uses any data, reports, and documents furnished or prepared by the Consultant for any project other than the subject of this Agreement, the Consultant shall be released from responsibility to third parties concerning the use of the data, reports, and documents.

The Consultant may retain copies of the materials. The City may use or reuse the materials prepared by Consultant without additional compensation to Consultant.

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6. Subcontracts.
(a) The Consultant shall not subcontract or assign responsibility for performance of any portion of this Agreement without the prior written consent of the City. Except as otherwise specifically approved by the City, the Consultant shall include appropriate provisions of this Agreement in subcontracts so rights conferred to the City by this Agreement shall not be affected or diminished by subcontract. There shall be no contractual relationship intended, implied, or created between the City and any subcontractor with respect to services under this Agreement. (b) In the event any subcontract of Consultant’s fails to protect rights conferred to the City as described in the preceding paragraph, Consultant agrees to be fully responsible and indemnify, hold harmless and defend the City and its officials, officers, employees, agents and volunteers from and against all claims, losses, costs and expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant’s subcontractors or any other person or entity involved with or on behalf of Consultant in the performance of this Agreement.

Such costs and expenses shall include reasonable attorney fees incurred by counsel of City’s choice.

7. Independent Contractor.

The Consultant is an independent contractor and not an employee of the City.

8. Indemnification.
(a) The Parties agree that City and City’s elected and appointed officials, officers, employees, agents and volunteers (hereinafter, the “City Indemnitees”) should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising the negligent act or willful misconduct of the Consultant in the performance of Work. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law. Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant’s commitment to indemnify, defend and protect City as set forth herein.
(b) To the fullest extent permitted by law, Consultant shall indemnify, hold harmless and defend the City Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs and fees of litigation) of every nature arising out of the negligent act or willful misconduct of the Consultant in the performance of Work hereunder or its failure Consultant Agreement Page 4 of 11
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to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the City. (c) City shall have the right to offset against the amount of any compensation due Consultant under this Agreement any amount due City from Consultant as a result of Consultant’s failure to pay City promptly any indemnification arising under this Section and related to Consultant’s failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws. (d) This Section and all provisions contained herein (including but not limited to the duty to indemnify, defend and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the City may have at law or in equity.

9. Insurance.
(a) The Consultant shall procure and maintain, for the duration of this Agreement, insurance against claims for injuries to persons or damages to property arising from or in connection with the performance of the work hereunder by the Consultant, officers, agents, employees, or volunteers. (b) The Consultant shall provide the following coverages:
(1) Commercial general liability insurance written on an occurrence basis in the amount of $1,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage. The insurance policy shall be amended to provide the general aggregate limit shall apply separately to the work under this Agreement or the general aggregate shall be twice the required per occurrence limit. (2) Business automobile liability insurance insuring all owned, nonowned and hired automobiles, in the amount of $1,000,000 combined single limit per accident for bodily injury and property damage.
(3) Workers’ Compensation insurance as required by the Labor Code of the State of California with the statutory limits required by the Labor Code and Employers Liability for $1,000,000 per accident for bodily injury or disease. The Consultant and subcontractors shall cover or insure their employees working on or about the site, regardless of whether such coverage or insurance is mandatory or merely elective under the law.
(4) Professional liability insurance covering loss resulting from errors or omissions of Consultant with a liability limit of at least $1,000,000 per occurrence. (c) The insurance policies required above shall contain or be endorsed to contain the following specific provisions:

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(1) Commercial general liability and automobile liability:
(i) The City and its City Council Members, officers, employees, agents and volunteers are added as insured;
(ii) The Consultant’s insurance shall be primary insurance as respects the City, its City Council Members, officers, employees, agents and volunteers and any insurance or self-insurance maintained by the City shall be in excess of the Consultant’s insurance and shall not contribute to it.
(iii) Any failure to comply with the claim reporting provisions of the policies or any breach of a policy warranty shall not affect coverage under the policy provided to the City, its City Council Members, officers, employees, agents and volunteers.
(iv) The policies shall contain a waiver of transfer rights of recovery (“waiver of subrogation”) against the City, its City Council Members, officers, employees, agents and volunteers for any claims arising out of the work of the Consultant.
(v) The policies may provide coverage which contains deductible or self-insured retentions. Such deductible and/or self-insured retentions shall not be applicable with respect to the coverage provided to the City under such policies. The Consultant shall be solely responsible for deductible and/or self-insured retention and the City, at its option, may require the Consultant to secure the payment of such deductible or self-insured retentions by a surety bond or an irrevocable and unconditional letter of credit. The insurance policies that contain deductibles or selfinsured retentions in excess of $100,000 per occurrence shall not be acceptable without the prior approval of the City.
(vi) Prior to start of work under this Agreement, the Consultant shall file with the City evidence of insurance as required above from an insurer or insurers certifying to the required coverage. The coverage shall be evidenced on an ACCORD Certificate of Insurance form (latest version) and be signed by an authorized representative of the insurer(s). A copy of form ISO 2009 required above shall be attached to the Certificate of Insurance at the time it is filed with the City. Should the required coverage be furnished under more than one policy of insurance, the Consultant may submit as many certificates of insurance as needed to provide the required amounts. In the event the Certificate furnished by the Consultant does not adequately verify the required coverage, the City has the right to require the Consultant to provide copies of the specific endorsements or policy provisions actually providing the required coverage. The City reserves the right to require certified complete copies of any insurance coverage required by this Agreement, but the receipt of such policy or policies shall not confer responsibility upon the City as to sufficiency of coverage.

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(2) All Coverages: Each policy required in this section shall contain a policy cancellation clause that provides the policy shall not be canceled or otherwise terminated by the insurer or the Consultant or reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City, Attention: Office Manager.
(d) All insurance required by this Agreement shall be placed with insurers licensed by the State of California to transact insurance business of the types required herein. Each insurer shall have a current Best Insurance Guide rating of not less than A:

VII unless prior approval is secured from the City as to the use of such insurer. (e) The Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor.

All coverages for subcontractors shall be subject to all of the requirements stated herein.

The Consultant shall maintain evidence of compliance with the insurance requirements by the subcontractors at the job site and make them available for review by the City.

10. Reserved

11. Records Retention
For the purpose of determining compliance with Public Contract Code 10115, et seq. and Title 21, California Code of Regulations, Chapter 21, Section 2500 et seq., when applicable and other matters connected with the performance of the Agreement pursuant to Government Code 8546.7, Consultant, subconsultants, and City shall maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of the Agreement, including but not limited to, the costs of administering the Agreement. All parties shall make such materials available at their respective offices at all reasonable times during the contract period and for three years from the date of final payment under the Agreement. The state, State Auditor, City, FHWA, or any duly authorized representative of the Federal Government shall have access to any books, records, and documents of Consultant that are pertinent to the contract for audit, examinations, excerpts, and transactions, and copies thereof shall be furnished if requested.

12. Audits
Consultant and subconsultants’ contracts, including cost proposals and indirect cost rates (ICR), are subject to audits or reviews such as, but not limited to, a Contract Audit, an Incurred Cost Audit, an ICR Audit, or a certified public accountant (CPA) ICR Audit Workpaper Review. If selected for audit or review, the contract, cost proposal and ICR and related workpapers, if applicable, will be reviewed to verify compliance with 48 CFR, Part 31 and other related laws and regulations. In the instances of a CPA ICR Audit Workpaper Review it is Consultant’s responsibility to ensure federal, state, or local Consultant Agreement Page 7 of 11
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government officials are allowed full access to the CPA’s workpapers. The contract, cost proposal, and ICR shall be adjusted by Consultant and approved by City to conform to the audit or review recommendations. Consultant agrees that individual terms of costs identified in the audit report shall be incorporated into the contract by this reference if directed by City at its sole discretion. Refusal by Consultant to incorporate audit or review recommendations, or to ensure that the Federal, State, or local governments have access to CPA workpapers, will be considered a breach of contract terms and cause for termination of the contract and disallowance of prior reimbursed costs.

13. Safety
(a) Consultant shall comply with OSHA regulations applicable to Consultant regarding necessary safety equipment or procedures. Consultant shall comply with safety instructions issued by City and/or its representatives. Consultant personnel shall wear hard hats and safety vests at all times while working on the construction project site.
(b) Pursuant to the authority contained in Section 591 of the Vehicle Code, City has determined that such areas are within the limits of the project and are open to public traffic. Consultant shall comply with all of the requirements set forth in Divisions 11, 12, 13, 14, and 15 of the Vehicle Code. Consultant shall take all reasonably necessary precautions for safe operation of its vehicles and the protection of the traveling public from injury and damage from such vehicles. (c) Any subcontract entered into as a result of this Agreement shall contain all of the provisions of this Section.
(d) Consultant must have a Division of Occupational Safety and Health (CALOSHA) permit(s), as outlined in California Labor Code Sections 6500 and 6705, prior to the initiation of any practices, work, method, operation, or process related to the construction or excavation of trenches which are five feet or deeper.

14. National Labor Relations Board Certification
In accordance with Public Contract Code Section 10296, Consultant hereby states under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against Consultant within the immediately preceding two-year period, because of Consultant’s failure to comply with an order of a federal court that orders Consultant to comply with an order of the National Labor Relations Board.

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15. Statement of Compliance
(a) Consultant’s signature affixed herein shall constitute a certification under penalty of perjury under the laws of the State of California that Consultant has, unless exempt, complied with the nondiscrimination program requirements of Government Code Section 12990 and Title 2, California Administrative Code, Section 8103. (b) During the performance of this Contract, Consultant and its subconsultants shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition, age (over 40), marital status, and denial of family care leave. Consultant and subconsultants shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.

Consultant and subconsultants shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.).

The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Contract by reference and made a part hereof as if set forth in full. Consultant and its subconsultants shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.

16. Debarment and Suspension Certification
(a) Consultant’s signature affixed herein shall constitute a certification under penalty of perjury under the laws of the State of California, that Consultant has complied with Title 2 CFR Part 180, “OMB Guidelines to Agencies on Government-wide Debarment and Suspension (nonprocurement),” which certifies that he/she or any person associated therewith in the capacity of owner, partner, director, officer, or manager, is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal agency; has not been suspended, debarred, voluntarily excluded, or determined ineligible by any federal agency within the past three (3) years; does not have a proposed debarment pending; and has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past three (3) years. Any exceptions to this certification must be disclosed to City.
(b) Exceptions will not necessarily result in denial of recommendation for award, but will be considered in determining Consultant responsibility. Disclosures must indicate to whom exceptions apply, initiating agency, and dates of action.

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(c) Exceptions to the Federal Government Excluded Parties List System maintained by the General Services Administration are to be determined by the Federal Highway Administration.

17. State Prevailing Wage Rates
The State of California’s General Prevailing Wage Rates are not applicable to this Agreement.

18. Prohibition of Expending Funds for Lobbying
(a) Consultant certifies to the best of his or her knowledge and belief that:
(1) No state, federal, or City appropriated funds have been paid, or will be paid by-or-on behalf of Consultant, to any person for influencing or attempting to influence an officer or employee of any state or federal agency; a Member of the State Legislature or United States Congress; an officer or employee of the Legislature or Congress; or any employee of a Member of the Legislature or Congress, in connection with the awarding of any state or federal contract; the making of any state or federal grant; the making of any state or federal loan; the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any state or federal contract, grant, loan, or cooperative agreement. (2) If any funds other than federal appropriated funds have been paid, or will be paid to any person for influencing or attempting to influence an officer or employee of any federal agency; a Member of Congress; an officer or employee of Congress, or an employee of a Member of Congress; in connection with this federal contract, grant, loan, or cooperative agreement; Consultant shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
(b) This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
(c) Consultant also agrees by signing this document that he or she shall require that the language of this certification be included in all lower-tier subcontracts, which exceed $100,000, and that all such sub-recipients shall certify and disclose accordingly.

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19. Miscellaneous.
(a) Copies of documents such as tracings, plans, specifications, and maps prepared or obtained under the terms of this agreement shall be delivered to and become the property of the City. These documents are instruments of service for this project only and are not intended or authorized for other use by City or third parties.

Basic survey notes, sketches, charts, and computations shall be made available upon request to the owner without restrictions or limitations to their use. If the abovementioned documents are reused by the City, revisions will be indicated and the Consultant will be released and held harmless of liabilities by City. (b) For a period of three years following receipt of final payment, Consultant will retain and make readily available to representatives of the City and the comptroller General of the United States monthly progress reports, invoices, and sponsor payments for the purposes of determining the grant funds available to the City were used to defray grant costs.
(c) As used in this Subpart (c), the capitalized term “Contractor” shall mean those persons and entities and their officers, agents, employees, and volunteers that perform the physical construction, repair, and reconstruction of the improvements that are the subject of the plans described in this Agreement. Consultant shall not be responsible for the acts or omissions of any Contractor or any of the Contractor’s subcontractors, agents, or employees, or any other person (except Consultant’s own employees and agents) at the project site or otherwise performing any of the construction work of the project, except insofar as such acts or omissions were or should have been observed and reported by Consultant. The Contractor is solely responsible for construction means, methods, materials, techniques, sequences, and safety at the site.
(d) Neither party hereto shall assign, sublet or transfer interests hereunder without first obtaining written consent from the other party. (e) The waiver by either party of any breach of this agreement shall not bar the other party from enforcing any subsequent breach thereof. (f) If an action at law or in equity is brought to enforce this Agreement, the prevailing party shall be entitled to reasonable attorney fees and costs. (g) Notices. Notices shall be deemed received when: (i) personally delivered; (ii) deposited in the U.S. Mail with postage prepaid, registered or certified, and return receipt required; or (iii) sent by reputable overnight delivery, addressed as follows, or such other address as a party may designate by written notice:

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City: Consultant:

Attn: Ronald Strand, City Manager
City of Ridgecrest
100 W. California Avenue
Ridgecrest, CA 93555-4054
Attn: Vanessa Munoz
President
Willdan Engineering
374 Poli St., Suite 101
Ventura, CA 93301

20. Integration.

This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by both parties.

21. Governing Law.

This Agreement shall be interpreted and construed under, and the rights of the parties will be governed by the laws of the State of California.

22. Counterparts.

This Agreement may be executed in counterparts, which together shall compose a single instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first appearing above.

City of Ridgecrest Willdan Engineering
By: ____________________________ By: __________________________ Ronald Strand Vanessa Munoz
City Manager President
Exhibit “A”
[Scope of Services]
July 10, 2023 (Revised)
Travis Reed
Public Works Director/Deputy City Manager
City of Ridgecrest
100 W California Avenue
Ridgecrest, CA 93555
Subject: Proposal for Preliminary Engineering, Design, Bidding Assistance, and Construction Engineering for the Affordable Housing and Sustainable Communities Program (AHSC) Improvement Projects
Dear Mr. Reed:

The City of Ridgecrest has requested a proposal from Willdan through the on-call city engineering contract to provide project management, preliminary engineering, design, bidding assistance services for the upcoming Affordable Housing and Sustainable Communities Program (AHSC) Improvement projects. We understand that the project will be funded through Sustainable Transportation Infrastructure (STI) funds and Transportation Related Amenities (TRA 1 and TRA 2) funds. Willdan would be pleased to provide these requested services.

1. Project Understanding
Willdan understands the City has identified several types of improvements under this program.

Locations and type of improvements proposed by this program are: See Section 5 below for project location map.

Type of Improvements Location Funding
Source
Landscape renovations (xeriscape) around the
grass sump areas and areas adjacent to the Kerr
McGee Center and City Hall Buildings.

City Hall Complex TRA-1
ADA accessibility upgrades City Hall Complex STI
Upgrade existing Bus Stops to include Bus
Shelter, Pedestrian travel path, and Bus Stop
boarding area
City Hall Complex TRA-2
Install Two Bus Shelters at existing bus stops North Norma Street TRA-2 Construct curb, gutter, sidewalk, driveway
approaches, and curb ramps to meet ADA
standards
North side of Las Flores Ave.
from N. China Lake Blvd to N. Norma
St.

STI
East side of N. Norma St.
from Las Flores Ave. to Drummond
Ave.

STI
South side of Drummond Ave.
from N. Norma Ave to N. China Lake
Blvd
STI
Bus Stop at Kerr McGee (2 Ramps) TRA-1
July 10, 2023

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We understand that the City has $2,343,000 in STI Grant funds, $1,379,000 in TRA-1 funds and $295,000 in TRS-2 funds available for this project. Willdan will track and bill the project separately.

2. Scope of Work
Preliminary Engineering

1. Willdan will prepare a base plan with the existing improvements for the project areas.

2. Willdan will use ESP to perform topographical survey from ROW to ROW and will include all intersection street for the purpose of designing curb returns and ramps.

Steet Lighting
East side of N. Norma St.
from Las Flores Ave. to W Howell Ave
TRA-2
South side of Felspar from Norma
Street to Sanders Street
TRA-2
Pedestrian Hybrid Beacon (Mid Block Crossing)
Warrant Study and Signal Plans
Five Intersections

1. Felspar and Norma,

2. Felspar and Downs

3. Las Flores Ave and N Sierra Vista

4. Graaf and W. Alene

5. Church and S Helena St
TRA-1
Hot Mix Asphalt Paving
Felspar Ave - from N. Norma St. to N.

Downs St.

STI
Florence Street, Felspar Ave to 200
North
STI
Evaluation of Channel Concrete Lining Felspar Sump Area TRA-1 Bike Lanes Gap Closure, Signing, and Striping
(Require ROW acquisition)
Class 1 Multiuse path on Felspar
Avenue from Norma Street to Sanders
Street
STI
Bike Lanes Signing and Striping
Bike Crossing on N Norma Street at
Felspar Avenue.

STI
Bike Crossing on N Downs Street at
Felspar Avenue.

STI
Bike Crossing on N China Lake Blvd at
Drummond Avenue
STI
Class 3 Bike Path on Felspar Avenue
from N Downs Street to N Norma
Street
STI
Class 3 Bike Path on Felspar Avenue
from Sanders Street to China Lake Blvd
STI
Class 4 Bikeway on Drummond Avenue
from China Lake Blvd to French Avenue
STI
July 10, 2023

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3. The City’s GIS base map, with right-of-way, contours, and other appropriate available layers will be used to enhance the information on the sheet layouts as needed.

4. Willdan will prepare engineering drawings for the improvements. Plans will be prepared on 24-inch by 36-inch layout. Plans will be submitted half size and full size on bond at 30-, 60-, and 100-percent design for City review and comment. If requested, final approved drawings will be submitted on Mylar, wet signed by the engineer-of-record.

5. Willdan will notify and coordinate with the utility agencies regarding the project-related modification of their facilities. Determine special requirements for utility facilities, including protection, right-of-way, and construction methods within the vicinity of the utility. Willdan will issue second and third notices to the utilities.

6. During all phases of the project, Willdan will provide coordination with City staff as required to keep them apprised of the project schedule and details of the proposed improvements. Draft plans will be submitted to City staff for review and commenting at the design submittal milestones.

7. Environmental Compliance – Willdan environmental specialists will review project descriptions, surveys, studies, documents, etc., to substantiate use of a CEQA categorical exemption for Project List.

Improvements to existing public facilities fall within the CEQA Guidelines Class 1, 2, and 4 exemptions for minor alteration, replacement, or reconstruction of existing facilities. Specifically, CEQA Guidelines Section 15301(c) exempts minor alteration to existing facilities, Section 15302(c) exempts replacement or reconstruction of existing utility systems and/or facilities when no expansion of capacity is proposed, and Section 15304 exempts minor alterations to land, including installing new bicycle lanes and new landscaping. Because the proposed Project involves existing facilities and does not increase street capacity (other than bicycle capacity), Willdan is confident that a categorical exemption is appropriate. Willdan will prepare a Notice of Exemption in accordance with CEQA Guidelines’ sections 15301, 15302, and 15304 for the City to file with the County Clerk within five days of project approval establish a 30-day statute of limitations.

8. We assume that no biological survey will be required for this project.

9. We also assume that there are no Federal funds involved in this project and NEPA Compliance is not required.

Final Design Engineering

1. Willdan will prepare a preliminary project development report and submit at 30 percent milestone.

Plans will be prepared on 24-inch by 36-inch layout and will be submitted half size and full size on bond at 60-, and 100-percent design for City review and comment. If requested, final approved drawings will be submitted on Mylar wet signed by the engineer-of-record.

2. Civil Construction Plans will include 40-scale plan view of the street segments with typical crosssections, notes, and details sufficient to support bid and construction. Existing and proposed surface profiles will be included for street centerline and edge of pavements. Plan layout will include horizontal control and station callouts horizontal alignment. Quantity sheets will include tabulated quantities based on centerline stationing.

3. Curbs and gutters will be a part of this project, but sidewalks will be assessed as part of the preliminary engineering and evaluated for budget availability. ADA compliant curb ramps will be designed. Existing driveways will be assessed for repairs, but driveways will not be included for vacant lots.

4. Plans will call out utility adjustments required.

5. Typical sections will be provided for the project limits.

July 10, 2023

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6. Willdan will not conduct geotechnical investigation nor coring for the new pavement design. Willdan will propose 4” HMA over 4” AB or an equivalent pavement section.

7. Willdan will prepare a pedestrian hybrid beacon (pedestrian crossing) warrant study at 5 locations to support the need for a new pedestrian signal. Will dan will prepare 5 traffic signal plans and striping details.

8. Willdan will prepare landscape design plans for the conversion of the existing landscape to a xeriscape landscape theme at the Civic Center Complex. Tasks listed below.

Task 1 – Site Review, Research and Data
• Review project limits and existing conditions.
• Obtain and analyze record/as-built drawings.
• Prepare base sheets for design development plan and construction drawings.

Task 2 – Design Development Plan
Prepare Design Development Plan illustrating, in greater detail, the proposed improvements. The design development plan will identify the conversion of the existing landscape to a xeriscape landscape theme. The plan will be prepared in Plan view at 30 scale.

The design development plan will address in further detail and understanding the spatial requirements and relationship for the renovation improvements including circulation functions, landscape, and irrigation. In addition, specific items that will be illustrated in the plan are:
• Address drainage patterns.
• Address planting palette suggestions for trees, shrubs, and groundcovers, along with their respective locations. Species shall include drought adaptive and California native plants.
• Address irrigation systems and relocation (i.e., smart controllers, control valves, and low-flow drip).
• Address the layout of the xeriscape planting palette. • Address preservation of trees and/or other noteworthy features. • Address pedestrian circulation.
• Address site amenities, (i.e., tables, benches, trash receptacles, and urns) • Address cobblestone/dry stream, boulders, and decomposed granite coverings.

Submit the design development plan design to the city for review and comments. Upon the review and comments from the City staff, present a final site design development plan design for final review and acceptance that addresses the comments from all parties.

The development of the landscape design will incorporate all aspects of local and state water conservation standards, including meeting the requirements of California Model Landscape Efficient Ordinance (MWELO). The tree, shrub and groundcover palette will be comprised of drought adaptive species suitable for the geographic area, along with a welldesigned irrigation system that delivers the highest efficiency. All plants will be chosen based on low maintenance requirements such as trimming/pruning cycles, fertilization needs, hardiness.

Task 3 – Landscape and Irrigation Construction Drawings • Prepare Site Amenities and Landscape Construction Layout at 20 Scale (3 sheets). • Prepare Irrigation System Modification Plans at 20 Scale (5 sheets). • Prepare Planting Plans at 20 Scale (4 sheets).
• Prepare Landscape Construction and Site Amenities Construction Installation Details (3 sheets).

Task 4 – Specifications and Engineer’s Estimate
July 10, 2023

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• Prepare Landscape and Irrigation Technical Specifications (SSPWC Greenbook Format) & Construction Cost Estimates
Task 5 – Bidding Support and Construction Support
• Respond to questions during project advertising phase. • Assist with the preparation of addenda.
• Assist with reviews of “or equal” products prior to bid opening. • Review and respond to request for information.
• Shop drawings review and acceptance.
• Prepare as-built drawings.

9. Signing and Striping Plans. Signing and striping plans will be prepared at a 40 scale within the project areas. Signing and Striping Plans will be included in the 60-, and 100-percent design submittals.

10. Prepare contract documents, including notice inviting bids, bid schedule, bid forms, sample agreement, and federal compliance requirements.

11. Compile current general provisions as provided by the City of Ridgecrest.

12. Prepare technical specifications in Caltrans format for proposed improvements in accordance with industry standards. Landscape Specifications will be in Greenbook format.

13. Prepare engineer’s opinion of probable cost.

14. Willdan understands that the City will provide all ROW and ROW Engineering related to legal descriptions, plat maps and area calculations for the permanent and temporary rights and the city will order needed preliminary title report.

15. Willdan understands that the City will perform ground survey of W Felspar Ave from N Norma St to N Sanders St.

Bidding Assistance

1. Assist the City with advertising the plans and specifications in local newspaper (The Bakersfield Californian) in compliance with Public Contract Code Section 10140. This proposal assumes the City will pay the publication fees directly to the newspaper agency.

2. Coordinate with plan rooms to advertise the plans and specifications in their publications. The plans and specifications will be distributed to at least three local plan rooms.

3. Review and respond to RFIs and questions that may arise during the advertisement process.

4. Prepare and issue addenda during the advertisement period (up to two).

5. Schedule a pre-bid meeting at least two weeks prior to bid opening date.

6. Attend and conduct pre-bid meeting.

7. Prepare pre-bid meeting minutes and publish as an addendum.

8. Coordinate with the City to open bids publicly, read aloud, and prepare bid opening log sheet.

9. Review the three lowest bids.

10. Verify eligibility of the apparent low bidder and its subcontractors to receive contract awards by confirming current, active license status with the State of California Contractors License Board and non-appearance on the Federal List of Parties Excluded (debarment list).

11. Check references of lowest, responsive bidder.

12. Document any irregularities in the bids.

July 10, 2023

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13. Verify the low bidder's qualifications.

14. Prepare the bid summary.

15. Prepare a recommendation of contract award.

Construction Management
Preconstruction Services

1. Review plans, permits, and all other contract- and construction-related documents.

2. Prepare the construction file.

3. Prepare special concerns to be presented at the preconstruction conference.

4. Conduct virtual preconstruction meeting via conference call and prepare preconstruction meeting minutes and distribute to attendees.

5. Begin submittals process.

6. Conduct a field investigation of the project area (by Inspector) to become familiar with the existing facilities and the project environment.

Construction Management

1. Assume responsibility for coordination with Willdan staff, subconsultants, and City staff.

2. Oversee work performed by materials testing subconsultant.

3. Conduct special site meetings, when necessary, with contractor and City staff to review job progress, scheduling, and coordination.

4. Verify through design support consultation that each identified item of concern is being interpreted properly.

5. Coordinate design revisions, additions, answers to questions, RFIs, and construction disputes.

6. Assist the City with public awareness and information program to keep residents and local stakeholders advised of project status along with the impacts to traffic flow circulation, including answering questions from the public about the project.

7. Assist in coordination with Caltrans District 9 Permits Office for work being performed under Caltrans encroachment permit.

8. Ensure that the contractor distributes public construction notices and places construction and information signs.

9. Through Willdan’s system of project control, monitor activities related to the project such that the project is constructed pursuant to contract documents, LAPM, and in a timely fashion.

10. Log, track, review, and process submittals, RFIs, RFCs, CCOs, drawing revisions, construction schedule, and detailed traffic control plan.

11. Closely review schedule, require schedule updates, monitor progress, and advise contractor to take action on schedule slippage.

12. Document contractor’s 20-day notices, mechanic’s liens, and stop notices.

13. Provide communication and correspondence with Contractor.

14. Monitor and coordinate activities of design engineering support, surveying, testing, and work by utilities or other agencies.

15. Prepare weekly statement of working days and submit to the contractor and the City.

July 10, 2023

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16. Establish and conduct construction progress and coordination meetings via conference call to:
 Resolve all old business issues to the maximum extent possible  Address all items of new business as presented by any party  Review project schedule and address any deviations
 Review submittal log in terms of items needed and resubmittals required and review RFI, RFC, and CCO logs
 List status of construction items recently undertaken or ongoing  List planned construction items for the next two weeks, usually known as the two-week look ahead schedule
 Provide updated drawing revisions list/log

17. Prepare minutes for the construction progress meetings.

18. Provide claims mitigation monitoring, including proactively applying foresight to discover unforeseen conflicts prior to contractor encounter.

19. Evaluate and respond to the contractor’s requests for clarification of plans and specifications.

20. Ensure that all questions, conflicts, and issues are immediately brought to the City’s attention and addressed with appropriate directives to the contractor.

21. Conduct special site meetings, when necessary, with the contractor and City staff to review job progress, scheduling, and coordination.

22. Perform quantity, time, and cost analyses required for negotiation of contract changes. At the end of the project, provide a “balancing” change order to cover all bid items over/under their original bid amounts.

23. Negotiate and prepare change orders, including memorandum of explanation and cost estimates to substantiate change order costs and provide to City for review. Utilize the Caltrans rate rental book (“Bluebook”) for time and materials change order costs associated with equipment utilized on the project.

24. Monitor and perform immediate and thorough analysis of validity of all potential claims that arise.

25. Maintain all data for change orders and record information with regard to the time of dispute, time of notification by the contractor, and action taken by the inspector.

26. Monitor materials documentation and testing results and enforce corrections.

27. Review for approval the contractor’s progress payment requests, including verifying certified payroll compliance status and impact on payment; negotiate differences over the amount with the contractor; and process payments through the City's project manager.

28. Monitor preparation of a punch list at substantial completion and follow up.

Construction Inspection

1. Review plans, specifications, and all other contract- and construction-related documents.

2. Become familiar with traffic control plans, construction schedule, construction sequence, and permit requirements from other agencies.

3. Verify that the contractor conforms to the design survey line and grades.

4. Attend weekly virtual progress meetings with the construction manager, City, contractor, and subcontractors.

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5. Provide full-time (8 hours per day) and as-needed daytime construction inspection of the work to monitor materials and methods for compliance with plans, specifications, and contract documents; address and document non-conforming items as they are discovered.

6. Monitor compliance with Cal OSHA requirements and compliance with all local, state, and federal regulations. Although Willdan will monitor the activities, it is the contractor’s sole responsibility to provide workers with a safe working environment.

7. Provide Willdan’s labor compliance manager with labor and equipment reports.

8. Monitor construction area traffic control, environmental mitigations compliance, coordination of materials testing, and coordination with Caltrans District 9 Permit Inspector.

9. Meet with the contractor at the beginning of each day and review the proposed work plan, including specific details that may affect progress.

10. Conduct daily measurements of quantities of work with the contractor.

11. Review actual contractor performance throughout the day and discuss discrepancies with the contractor as they occur.

12. Assist in coordination of engineering support, surveying, specialty inspections, and fieldwork by utility companies.

13. Ensure compliance of Underground Service Alert notification/delineation.

14. Evaluate the contractor’s operation and production with respect to quality and progress and report to the construction manager.

15. Photograph continuous property frontages along the street alignment once prior to construction and once immediately following construction. Maintain a photographic record of key elements of each major operation of work each day, with increased detail in situations of potential changes or claims.

16. Closely monitor testing results and require the contractor to provide corrective measures to achieve compliance.

17. Maintain copies of all permits needed to construct the project and enforce special requirements of each.

18. Establish and maintain weather day logs.

19. Prepare and maintain detailed daily diary inspector reports on construction progress.

20. Prepare clear and concise letters and memoranda, as needed. Establish a solid paper trail.

21. Maintain field file bound workbooks during construction, including a cumulative record of quantities constructed, daily and weekly reports, working day reports, change order documentation, photographs, and other documentation.

22. Review the construction schedule and enforce requirements for updating schedules and maintaining appropriate progress of the work.

23. Analyze delays and review claims on a timely basis and make recommendations to the construction manager.

24. Assist with the review and evaluation of change order work.

25. Provide complete measurements and calculations documented to administer progress payments.

26. Maintain and submit a clean set of plans marked in red for as-built corrections on record drawings to be filed with the City.

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27. Prepare a punch list at substantial completion and follow up with the contractor regarding progress of corrections.

28. Schedule a final inspection with the City and applicable agencies; prepare, distribute, and inspect corrections to the final punch list for completion; and recommend final acceptance.

Labor Compliance

1. Verify applicable wage determination; document verification as required. If wage determination has changed from what appears in project specifications, provide addendum for dissemination to plan holders.

2. Verify that the Public Works Contract Award Information (DAS-140) and Request for Dispatch of an Apprentice (DAS-142) forms are submitted to local apprenticeship councils by all contractors, as appropriate.

3. Verify and document jobsite posting of wage rate information and labor compliance posters.

4. Receive and review labor compliance documentation from public works observers or inspectors and compare with contractor-submitted documents. Monitor contractor-submitted payroll documentation on a continuous basis.

5. Verify with State Division of Apprenticeship Standards that any worker listed on the certified payroll who receives less than the published hourly journeyman rate is registered in an approved apprenticeship program and is in possession of a formal certification.

6. Verify that any payroll deductions are acceptable under State prevailing wage law.

7. Verify that payroll data is submitted to the Department of Industrial Relations (DIR) online Compliance Monitoring Unit (CMU) under the correct DIR project number.

8. Verify the payment of the training contribution, as necessary.

9. Follow up with contractor by telephone, email, and/or certified mail regarding required document submittals and payroll discrepancies and deficiencies. Provide detailed description of alleged deficiencies; outline corrective action to be taken; and enforce regulatory deadlines for compliance.

10. Calculate any applicable underpayments due; obtain restitution payroll(s) plus proof of worker payment(s), as needed.

11. Receive, pursue, and document labor complaints; prepare violation reports to oversight agencies as required; recommend special action to be taken if contractor continuously fails to comply with requests and requirements.

12. Coordinate with City staff the withholding of progress and/or retention payments if contractor fails to abide by labor compliance requirements.

13. Maintain content and format of labor compliance file in conformance with applicable government requirements.

14. Coordinate project file reviews by authorized county, state, and federal agencies.

15. Prepare a Labor Compliance Certification Form, if required.

Materials Testing Services
This Scope of Work is to provide material testing services at an Acceptance Testing (AT) level during construction phase, for the proposed subgrade preparation for PCC improvements, bus shelter foundation concrete pour, and asphalt concrete paving within the City of Ridgecrest. It is our understanding that the project in general will include construction of curb, gutter, sidewalk, driveway approaches, and curb ramps to meet ADA standards on Las Flores Ave, Norma St, and Drummond Ave; July 10, 2023

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bus shelters at the City Hall Complex and on Norma St; and hot mix asphalt pavement on Felspar Ave.

The following services are proposed to satisfy the Project needs during construction to verify that all work is completed with conformance to the contract requirements.

1. Qualified soils technician on site, periodically, during subgrade preparation and paving operations.

Conduct verification field testing (nuclear gauge) of compacted AC.

2. Qualified soils technician on site to verify contractor’s subgrade compaction.

3. Provide compaction testing of native soils and aggregate base material for proposed concrete improvements.

4. Collect a representative sample of native soil, aggregate base, and HMA for laboratory testing.

5. Laboratory tests including Proctor Compaction, Hveem (AC maximum density), Asphalt Extraction and Gradation.

6. Provide and submit daily reports to field construction manager/inspector.

7. Provide engineering support, inspector/technician coordination, dispatch, material engineering review, review of AC mix designs, test reporting, QA/QC, and administrative support services.

Post Construction Services

1. Prepare Notice of Completion on behalf of City.

2. Assist City with stop notices and release of retention. Verify lien releases have been received from contractor for all subcontractors and suppliers.

3. Ensure City receives as-built set of drawings at completion.

4. Upon project completion, provide the finished set of Inspector’s project workbooks to the City.

5. Submit complete labor compliance file to City for retention.

6. Finalize and deliver all construction management files and supplies to City for their records.

Exclusions

1. City will be responsible for the ROW negotiations and acquisition services. We assume that the City will directly coordinate with a separate consultant.

3. Proposed Schedule
The following is Willdan's proposed project schedule to complete our proposed scope of work for Franklin Street Improvement project.

Deliverable
Estimated
Completion Date
NTP (Assumed) Thursday, July 20, 2023
Kick Off Meeting Monday, July 24, 2023
Field Investigation/Research Monday, August 7, 2023
Preliminary Estimate Thursday, August 24, 2023
30-Percent Draft PS&E Thursday, August 24, 2023
Review and Comment by City Thursday, September 7, 2023
65-Percent Plans, Specifications and Estimates (Draft PS&E) Friday, November 10, 2023 July 10, 2023

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Review and Comment by City Monday, November 27, 2023
95-Percent Plans, Specifications and Estimates (Draft PS&E) Thursday, December 14, 2023 Review and Comment by City Thursday, December 28, 2023
100-Percent Signed Plans, Specifications and Estimates (Final PS&E) Thursday, January 18, 2024 Bidding Assistance Monday, February 5, 2024
Construction Friday, September 6, 2024

4. Proposed Fee
Willdan proposes to perform the requested services on a time and materials (T&M) basis. Willdan proposes to perform the requested professional project management and design engineering services on a T&M basis for a not-to-exceed amount of $313,443 for the improvements of the several TRA and STI funded AHSC projects.

Willdan will also provide the bid assistance, construction phase design support services, construction management, inspection, and material testing services for an additional fee of $264,578. See section 6 below for the fee breakdown.

Thank you for the opportunity to be of service to the City of Ridgecrest. We recognize the importance of this project to the City and are committed to realizing its timely and successful completion. Should you have any questions regarding this proposal, please contact me [email protected] of at (657) 223- 8557.

Respectfully submitted,

WILLDAN ENGINEERING
Tyrone Peter, PE
Director of Engineering
910005/WW.00.60/P22-336_23856

5. AHSC Project Locations Map
July 10, 2023

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Fee Schedule Page 1 of 2
July 10, 2023

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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority

STAFF REPORT
SUBJECT:

Public Hearing For Input To The City Council Regarding Request From Ridgecrest Area Convention And Visitors Bureau (RACVB) For Council’s Adoption Of A Resolution Of Intention To Renew The Ridgecrest Tourism Improvement District (RTID) 2023-2033 And Sunset The Existing One
PRESENTED BY: Attorney
SUMMARY:

At the June 20, 2023 City Council meeting, the Council adopted a Resolution of Intention, setting two public hearings for the RACVB request of renewal of the TBID. Attached to this Staff Report, as Exhibit A, is the June 1, 2023 letter from RACVB Executive Director Kari Crutcher, which in detail lays out the request for renewal of the existing TBID with an increased annual assessment rate of 5.75%. The request was supported by the necessary petitions and a new Management District Plan (Exhibit B).

This is the first of two public hearings. This one is set in accordance with State Law for the public to provide input and testimony to the Council regarding the proposed renewal and increase. At the next public hearing Council will, based on the vote of the affected businesses, take action on the request.

CEQA: This is not a Project under CEQA Guidelines as it is Categorically Exempt (15061(b)(3).

FISCAL IMPACT:

There is no fiscal impact from the recommended action.

ACTION REQUESTED:

Staff recommends that Council open the Public Hearing and receive any input from the public on this matter and confirm the date for the second public hearing and vote on the proposal.

CITY MANAGER’S RECOMMENDATION:

Concur with Recommended action
Submitted by: Ronald Strand, City Manager Action Date: July 19, 2023 (Revised Jan2019)
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DATE:

TO:

FROM:

June 1, 2023
Honorable Mayor Eric Bruen, City of Ridgecrest
Kari Crutcher, Executive Director, RACVB
SUBJECT: RESOLUTION OF INTENTION TO RENEW THE RIDGECREST TOURISM IMPROVEMENT DISTRICT 2023-2033
RECOMMENDATION:

It is recommended that the City Council:

1. Find that the Resolution of Intention proposed herein is categorically exempt under California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) (common sense exemption) that there is no possibility for causing a significant effect on the environment.

2. Adopt a Resolution of Intention to renew the Ridgecrest Tourism Improvement District.

3. Set a public meeting on July 5, 2023, and a public hearing on August 2, 2023, 6:00 p.m. to renew the RTID and the levy of assessments on lodging businesses.

BACKGROUND:

Developed by Ridgecrest lodging businesses and the Ridgecrest Area Convention and Visitors Bureau (RACVB), the RTID is an assessment district proposed to continue to provide specific benefits to payors by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The current RTID was formed in 2012 pursuant to the Property and Business Improvement Area Law of 1989 ('89 Law) and converted in 2017 pursuant to the Property and Business Improvement District Law of 1994 ('94 Law) for a ten (10) year term. The RACVB and Ridgecrest lodging businesses now wish to sunset the current RTID on September 30, 2023, and renew a new term of 10 years effective October 1, 2023.

The RTID is a benefit assessment district proposed to continue a revenue source to help fund marketing and sales promotion efforts for Ridgecrest lodging businesses.

The renewed RTID includes all lodging businesses, existing and in the future, located within the boundaries of the City of Ridgecrest.

Resolution of Intention to Renew the Ridgecrest Tourism Improvement District June 1, 2023

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The RACVB and Lodging business owners decided to pursue renewal of the RTID in order to continue a revenue source devoted to marketing Ridgecrest as a tourist, meeting, and event destination. If renewed, the RTID would generate approximately $1,139,647 in its initial year for promotion of travel and tourism specific to Ridgecrest and continue to fund the Ridgecrest Convention & Visitors Bureau and to support the California Welcome Center – Ridgecrest, as part of the Visit California welcome center statewide network.

TOURISM BUSINESS IMPROVEMENT DISTRICTS
Tourism Business Improvement Districts (TBIDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TBID fund the TBID, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TBID.

TBID benefits:
► Funds cannot be diverted for other government programs ► They are customized to fit the needs of each destination ► They allow for a wide range of services; including: destination marketing, tourism promotion, and sales lead generation
► They are designed, created and governed by those who will pay the assessment ► They provide a stable funding source for tourism promotion In California, TBIDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 ('94 Law). This law allows for the creation of a special benefit assessment districts to raise funds within a specific geographic area.

The key difference between TBIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TBID.

MANAGEMENT DISTRICT PLAN
The Management District Plan includes the proposed boundary of the RTID, a service plan and budget, and a proposed means of governance. The renewed RTID will include all lodging businesses, existing and in the future, and available for public occupancy, located within the boundaries of the City of Ridgecrest.

The initial annual assessment rate is 5.75% of gross short-term sleeping room rental revenue. Based on the benefit received, the assessment shall not be collected on: stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

Resolution of Intention to Renew the Ridgecrest Tourism Improvement District June 1, 2023

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The renewed RTID will have a ten (10) year term, beginning October 1, 2023 and ending ten (10) years from its start date on September 30, 2033. The assessment will be implemented beginning October 1, 2023. Once per year, beginning on the anniversary of RTID renewal, there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the RTID.

The City of Ridgecrest will be responsible for collecting the assessment on a monthly basis from each lodging business located in the RTID boundaries. The City shall continue to forward the assessments to RACVB, which will have the responsibility of managing RTID programs as provided in the Management District Plan.

RTID RENEWAL PROCESS
June 7, 2023 RESOLUTION OF INTENTION HEARING
Upon the submission of a written petition, signed by the business owners in the renewed district who will pay more than fifty percent (50%) of the assessments proposed to be levied, the City may initiate proceedings to renew a district by the adoption of a resolution expressing its intention to renew a district.

June 8, 2023 NOTICE
The '94 Law requires the City to mail written notice to the owners of all businesses proposed to be within the RTID. Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest RTID renewal.

July 5, 2023
August 7, 2023

PUBLIC MEETING
Allow public testimony on the renewal of the RTID and levy of assessments. No Council action required.

FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the renewed RTID which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the Council.

If the Council, following the public hearing, decides to establish the renewed RTID, the Council shall adopt a resolution of formation.

Resolution of Intention to Renew the Ridgecrest Tourism Improvement District June 1, 2023

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ENVIRONMENTAL:

The proposed action has been determined to be exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15061(b)(3), the common sense exemption that CEQA only applies to projects which have the potential for causing a significant effect on the environment. There is no possibility that the adoption of the Resolution of Intention, by itself, will have a significant effect on the environment.

FISCAL IMPACT:

The proposed RTID programs and services have been in place since 2012. This renewal effort will:
• Levy an initial assessment of 5.75% of gross hotel room (passed through to hotel guests) to fund the Ridgecrest Area Convention & Visitors Bureau and the California Welcome Center - Ridgecrest sales and marketing efforts; • Support the future stability and health of the Transit Occupancy Tax (TOT) revenues for the City and RTID by continuing to fund tourism promotions for Ridgecrest; and
• No increase in cost to the City's general fund or other special funds.

Respectfully submitted,

Kari Crutcher, Executive Director
Ridgecrest Area Convention and Visitors Bureau
Attachments (2)
Attachment 1 - RTID Management District Plan
Attachment 2 - Resolution of Intention

CONTENTS
I. OVERVIEW ........................................................................................................... 2 II. BACKGROUND..................................................................................................... 3 III. BOUNDARY .......................................................................................................... 4 IV. SERVICES ............................................................................................................ 5 Sales and Marketing.................................................................................................. 5 Administration............................................................................................................ 5 City Collection Fee .................................................................................................... 5 Contingency/Reserve ................................................................................................ 5 V. BUDGET................................................................................................................ 7 A. Total Annual Budget.............................................................................................. 7 B. Budget Allocations ................................................................................................. 7 C. GAAP Compliance................................................................................................. 7 VI. ASSESSMENT ...................................................................................................... 8 A. Assessment ........................................................................................................... 8 B. Penalties and Interest ............................................................................................ 8 C. Time and Manner for Collecting Assessments ...................................................... 8 V. CALIFORNIA CONSTITUTIONAL COMPLIANCE .............................................. 10 D. Specific Benefit.................................................................................................... 10 E. Specific Government Service............................................................................... 11 F. Reasonable Cost ................................................................................................. 11 VI. GOVERNANCE ................................................................................................... 12 A. Owners’ Association ............................................................................................ 12 B. Brown Act and California Public Records Act Compliance.................................. 12 C. Annual Report...................................................................................................... 12 APPENDIX 1 – LAW....................................................................................................... 13 APPENDIX 2 – ASSESSED BUSINESSES……………………………………………….. 24 RTID Management District Plan
May 1, 2023
2 I. OVERVIEW
Developed by the Ridgecrest Area Convention and Visitors Bureau (the Bureau), the Ridgecrest Tourism Improvement District (RTID) is an assessment district renewed to provide specific benefits to payors, by funding targeted marketing and sales promotion efforts.

Location: The renewed RTID includes all lodging businesses located within the boundaries of the City of Ridgecrest, as shown on the map in section IV.

Services: The RTID is designed to provide specific benefits directly to payors by increasing room night sales and revenue therefrom. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales and revenue therefrom.

Budget: The total RTID annual budget for the initial year of its 10-year operation is anticipated to be approximately $1,139,647. This budget is expected to fluctuate as room sales do, but is not expected to significantly change over the life of the RTID.

Cost: The annual assessment rate shall be 5.75 percent of gross room rental revenue. Based on the benefit received, the assessment shall not be collected on: stays of more than thirty (30) consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty; and stays pursuant to contracts executed prior to October 1, 2012.

Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the RTID.

Duration: The renewed RTID will have a 10-year life, beginning October 1, 2023 through September 30, 2033. Once per year, beginning on October 1, there is a 30-day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on district termination.

Management: The Bureau will continue to serve as the RTID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan and must provide annual reports to the City Council.

RTID Management District Plan
May 1, 2023
3 II. BACKGROUND
TIDs are an evolution of the traditional Business Improvement District. The first TID was formed in West Hollywood, California in 1989. Since then, over ninety California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TIDs without a state law.

California’s TIDs collectively
raise over $225 million for
local destination marketing.

With competitors raising their
budgets, and increasing rivalry
for visitor dollars, it is
important that Ridgecrest
lodging businesses continue
to invest in stable, lodgingspecific marketing programs.

TIDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TIDs allow
lodging business owners
to organize their efforts to
increase room night sales. Lodging business owners within the TID pay an assessment and those funds are used to provide services that increase room night sales.

In California, TIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. Unlike transient occupancy tax levies, TID funds cannot be diverted to government programs.

There are many benefits to TIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those lodging businesses that pay;
• They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created, and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion.

RTID Management District Plan
May 1, 2023
4 III. BOUNDARY
The RTID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Ridgecrest.

As used herein, lodging business means: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and including any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed located, or other similar structure or portion thereof. Lodging business does not include a private home, vacation cabin or similar facility which is rented by a person who is not regularly engaged in the business of renting such facility and does so only occasionally and incidentally to his own use thereof.

The boundary, as shown in the map below, currently includes 18 lodging businesses.

A listing of lodging businesses within the renewed RTID can be found in Appendix 2.

RTID Management District Plan
May 1, 2023
5 IV. SERVICES
Assessment funds will be spent on specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the RTID funds are sales and marketing programs available only to assessed businesses, which are designed to increase room night sales and revenue therefrom. A description of the proposed activities for the initial year of operation is below; the same activities are proposed for subsequent years.

Sales, Marketing & Events
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Ridgecrest as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Digital marketing efforts, including advertising and social media, to increase awareness and optimize Internet presence to drive overnight visitation and room sales to assessed businesses;
• Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Attendance of trade shows to promote assessed businesses; • Sales blitzes for assessed businesses;
• Familiarization tours of assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses;
• Coordinated promotions with visitor-attracting businesses, events, and attractions targeted at increasing overnight visitation to assessed businesses; • Attendance of professional industry conferences and affiliation events to promote assessed businesses;
• Sponsorship and promotion of events marketed to overnight visitors encouraging them to stay at assessed businesses;
• Lead generation activities designed to attract tourists and group events to assessed businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; and
• Development and maintenance of a website designed to promote assessed businesses.

RTID Management District Plan
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6 Administration
In order to provide the sales and marketing services, the Bureau will incur various administrative costs, such as staffing, rent, advocacy, insurance, legal, and accounting fees.

City Collection Fee
The City of Ridgecrest shall retain a fee to cover its actual costs of assessment collection and administration.

Contingency/Reserve
In order to ensure effective provision of services, a contingency will be established to account for uncollected assessments or unanticipated program costs. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration, or renewal costs at the discretion of the Bureau Board.

Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of the reserve fund shall be set by the Bureau Board. The reserve fund may be spent on programs described in this Plan in any proportion deemed appropriate by the Bureau Board.

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7 V. BUDGET
A. Total Annual Budget
The total 10-year budget is projected at approximately $1,139,647 annually, or $11,396,470 through 2033. This budget is expected to fluctuate as room sales do, but is not expected to significantly change over the life of the RTID.

B. Budget Allocations
The budget allocations for the initial year are shown below. Although actual annual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain consistent; however, the City and the Bureau Board shall have the authority to adjust categorical allocations by up to fifteen percent (15%) of the total budget each year. In the event of a legal challenge against the RTID, any and all assessment funds may be used for the costs of defending the RTID, the City and the Bureau related to the RTID.

The initial annual budget of $1,139,647 will be allocated as follows:

C. GAAP Compliance
Each budget category includes all costs related to providing that service, in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The costs of employing an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the Bureau Board on an as-needed basis.

RTID Management District Plan
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8 VI. ASSESSMENT
A. Assessment
The annual assessment rate shall be 5.75 percent of gross room rental revenue. Based on the benefit received, the assessment shall not be collected on: stays of more than thirty (30) consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty; and stays pursuant to contracts executed prior to October 1, 2012.

The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business value in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes.

The assessment is levied upon and a direct obligation of the assessed lodging business.

However, the assessed lodging business may, at its discretion, pass the assessment on to customers. The amount of assessment, if passed on to each customer, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each customer shall receive a receipt for payment from the business. The assessment shall be disclosed as the “RTID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to customers.

Bonds shall not be issued.

B. Penalties and Interest
The City shall be responsible for collection of delinquent assessments. The RTID shall reimburse the City of Ridgecrest for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent RTID assessment are sought to be recovered in the same collection action by the City, the RTID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency: any lodging business which fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

2. Fraud: If the City determines that the nonpayment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsection 1 above.

3. Interest: In addition to the penalties imposed, any lodging business which fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent (0.5%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

RTID Management District Plan
May 1, 2023
9 4. Penalties Merged With Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid.

C. Time and Manner for Collecting Assessments
The RTID assessment will be implemented beginning October 1, 2023 and will continue for 10 years through September 30, 2033. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.

RTID Management District Plan
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10 V. CALIFORNIA CONSTITUTIONAL COMPLIANCE
The RTID is subject to certain provisions of the California Constitution. Although it levies an assessment, the RTID is not a property-based assessment subject to the requirements of Article XIII D of the Constitution (“Proposition 218”). The Court has found, “Proposition 218 limited the term ‘assessments’ to levies on real property.”1 Rather, the RTID assessment is a business-based assessment, and is subject to Article XIII C of the Constitution (“Proposition 26”). Pursuant to Proposition 26 all City levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the RTID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

D. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the RTID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the RTID, and are narrowly tailored. RTID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in RTID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.

The assessment imposed by the RTID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales and revenue therefrom. The specific benefit of an increase in room night sales for assessed lodging businesses will be directly provided only to lodging businesses paying the RTID assessment, with marketing and sales programs promoting only those lodging businesses paying the assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging business. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration, collection and contingency expenditures also provide the specific benefit of increased room night sales to the assessed lodging businesses.

Although the RTID, in providing specific benefits to payors, may produce incidental benefits to non- paying businesses, the incidental benefit does not preclude the services RTID Management District Plan
May 1, 2023
11 from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
A. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the RTID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6
B. Reasonable Cost
RTID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the Bureau, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from RTID- funded activities, be featured in advertising campaigns, and directly benefit from other RTID-funded services.

Non-assessed lodging businesses will not directly receive these, nor any other, RTIDfunded services and benefits.

The RTID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to nonassessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-RTID funds. RTID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. 4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
RTID Management District Plan
May 1, 2023
12 VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the RTID as defined in Streets and Highways Code §36612. The City Council has determined that the Ridgecrest Area Convention and Visitors Bureau will serve as the Owners’ Association for the RTID. A majority of the Bureau’s board of directors shall be representatives of assessed lodging businesses.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act.

These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the Bureau board and certain committees wherein the RTID is discussed must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
The Bureau shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year.
• The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

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13 APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2022 SUPPLEMENT *** (ALL 2021 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts.
(c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them.
(e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits.
(h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property.
(2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or RTID Management District Plan
May 1, 2023
14 persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, theincidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part.

A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions.

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15 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district. 36614.5. “Property and business improvement district”;
“District”
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“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part.

Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. 36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district
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(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district.
(2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. (e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial RTID Management District Plan 18
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year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds.

The management district plan may set forth specific increases in assessments for each year of operation of the district.
(i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof.
(2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel.

Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained RTID Management District Plan 19
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in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council.
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b).

If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments.

The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
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Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.
36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property (a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district.

The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

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36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to
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be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district.
(2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses.

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(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days.

The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires.

All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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APPENDIX 2 – ASSESSED BUSINESSES
A Nights Inn 706 N. Balsam Street Ridgecrest, CA 93555
American Inn & Suites 553 S. China Lake Blvd. Ridgecrest, CA 93555 Baymont by Wyndham Ridgecrest 131 S. China Lake Blvd. Ridgecrest, CA 93555 Best Western China Lake Inn Budget Inn 400 S. China Lake Blvd. Ridgecrest, CA 93555 Clarion Inn 901 N. China Lake Blvd. Ridgecrest, CA 93555 Desert Motel 339 W. Church St. Ridgecrest, CA 93555
Econolodge Inn & Suites 201 W. Inyokern Rd. Ridgecrest, CA 93555 Hampton Inn & Suites 104 E. Sydnor Ave. Ridgecrest, CA 93555 Heritage Inn & Suites 1050 N. Norma St. Ridgecrest, CA 93555 Holiday Inn Express 1010 N China Lake Blvd Ridgecrest, CA 93555 Howard Johnson 831 N. China Lake Blvd. Ridgecrest, CA 93555 Motel 6 329 E. Ridgecrest Blvd. Ridgecrest, CA 93555
OYO Hotel Europa 131 W. Upjohn Ave. Ridgecrest, CA 93555 Quality Inn 507 S. China Lake Blvd. Ridgecrest, CA 93555 Rodeway Inn & Suites 416 S. China Lake Blvd. Ridgecrest, CA 93555 Springhill Suites 113 E. Sydnor Ave. Ridgecrest, CA 93555 Super 8 426 S. China Lake Blvd. Ridgecrest, CA 93555
Travel Suites Hotel 535 S. China Lake Blvd. Ridgecrest, CA 93555 This Page Intentionally Left Blank

This Page Intentionally Left Blank

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