EXHIBIT K
000263
AMENDED
- CHARTER REVIEW COMMITTEE
City of Riverside
December 11, 2003, 3 p.m.
Lakeside Room, Fairmount Park Boathouse
2601 Fairmount Boulevard
• MINUTES
PRESENT:
Higgins, and Rusty Bailey
ABSENT: Ben Johnson (excused), Marcia McQuern (excused), Rose Mayes, Dorothy Bailey, Stan Stosel, William Turpin, and Art Garcia STAFF PRESENT: Tom Evans, Kelly Palmer, Janis Lowry, Gregory Priamos, Ken Gutierrez, Judith Auth, Tricia Ruiz, Robin Metz, and Rhonda Strout ALSO PRESENT: Lalit Acharya, David Leonard, James Anderson, Dan Price, Bob Saber, Ron Smith, Krystal Macias, Kristina Blake, Jason Houck, and others Chair Eric Haley convened the Charter Review Committee meeting at 3:20 p.m.
The Pledge of Allegiance was given to the Flag.
ORAL COMMUNICATIONS FROM THE AUDIENCE
One citizen spoke regarding the schedule of Charter Review Committee meetings. Jim Anderson spoke regarding the Committee members names and background information being available on the City's website.
MINUTES - CONTINUED TO LATER IN THE DAY
Due to lack of a quorum the approval of the Minutes for November 13, 2003, was continued to later in the day (see page CRC-23).
HUMAN RESOURCES BOARD
Chair Haley reviewed the memo submitted by Human Resources Director Art Alcaraz recommending there be no changes to Charter Section 807 relating to the Human Resources Board.
BOARD OF LIBRARY TRUSTEES
Library Director Judith Auth recommended there be no changes to Charter Section 808 relating to the Board of Library Trustees.
Member Higgins arrived during the following discussion providing a quorum for the Charter Review Committee.
CRC-22
000264
PARK AND RECREATION COMMISSION
Park and Recreation Commission Chair Ron Smith concurred with staff's recommendation that there be no changes to Charter Section 809 relating to the Park and Recreation Commission.
Discussion was held regarding ward representation and the role of alternates on the boards and commissions. Committee members indicated their desire that all boards and commissions have alternates and that the roster include the alternates ward numbers. Assistant City Clerk Kelly Palmer reviewed the interview and selection process for the boards and commissions.
Discussion was held regarding the street tree policy including tree trimming which gives the City authority for trees in medians and on public property only with contracts for street tree maintenance (five-year trimming cycle). Planning Director Ken Gutierrez stated there are no laws or ordinances protecting trees on private property with the exception of a new tree protection policy for Victoria Avenue.
MINUTES
Following discussion, motion was made by Member Teer and seconded by Member Castillo approving the minutes of November 13, 2003, as presented. Motion carried unanimously.
PLANNING COMMISSION
Planning Director Ken Gutierrez recommended no changes to Charter Section 806 relating to the Planning Commission. Following discussion, the Committee recommended the City Council explore a broader role for the Planning Commission including more authority over land use matters with diversity and representation from each ward.
Committee Member Rusty Bailey entered the meeting during the following discussion.
BOARD OF PUBLIC UTILITIES
Public Utilities Director Tom Evans summarized the Board of Public Utilities recommended changes to Article XII of the Charter as follows: (1) preference should be given to Riverside- based companies for construction contracts; (2) add to Section 1202 to allow the Board of Public Utilities to award contracts over $50,000 within the approved City budget, without further City Council approvals; (3) amend Section 1202(b) so that in addition to exceptions for "urgent necessity to preserve life, health, and property" that customer-requested work provided under the rules adopted by the Board of Public Utilities and City Council also be exempt from City Council approval requirements (subject to ratification by the Board after the fact); and (4) add to Section 1202 delegation to the Public Utilities Director, without further City Council authorization or approval, the power and authority to enter into long-term contracts to provide water and power in accordance with approved tariffs based on current cost of service studies up to seven years in length.
Public Utilities Director Evans indicated staff does not support the first recommendation regarding local preference because bids should be awarded to the low bidders thereby encouraging competition. He also indicated there are added benefits to the City by awarding contracts to outside contractors including money spent on supplies, lodging, and meals within the City during the term of the contract.
Following discussion, the Committee requested staff to (a) acquire local preference policies from the League of California Cities of municipalities over 200,000 in population (including CRC-23
000265
Ontario, San Bernardino, Moreno Valley, and Corona) for continued discussion at a future applicants, and i reach are secion co rever the Mayor poline se boards or commissions if there is a vacancy over 60 days.
The Committee adjourned at 5 p.m.
Respectfully submitted,
Benity City Clerk
ACCOMPLISHMENTS
1. Reviewed Boards and Commissions
TO DO:
1. Interview Councilmember Hart
2. Interview newly-elected Councilmembers
3. Continue discussion regarding the Board of Public Utilities' recommendation for loca preference to Riverside-based companies for construction contracts
4. Begin policy deliberations and formulate positions
CRC-24
000266
Riverside
CITY OF RIVERSIDE
RIUEKSIDE:
COMMITTEE MEMORANDUM
People Serving
People 1998
CHARTER REVIEW COMMITTEE DATE: December 11, 2003
ITEM NO: 9
SUBJECT: CITY CHARTER RECOMMENDATIONS BY THE PUBLIC UTILITIES BOARD BACKGROUND:
The Department of Public Utilities (PU) is uniquely described in Article XIl of the City Charter. The PU Department provides electric service to approximately 100,000 customers and water service to approximately 60,000 customers. The total department budget for FY 2003/04 is over 312 million (55.2 percent of the total City of Riverside's (City) budget).
The PU Department is comprised of approximately 410 employees who are divided into four major divisions:
• Energy Delivery
Water
• Marketing and Customer Service
• Financial Resources.
The Public Utilities Director reports to the City Manager and the Board of Public Utilities fulfills the functions, specifically outlined in the City Charter, as well as helping set goals for the utilities.
The Public Utilities Board and senior department management developed the following strategic goals:
• Attract, develop and retain quality employees
• Promote the efficient use of water and electricity
• Improve and protect the current excellent financial health of Riverside Public Utilities • Build and maintain a safe and reliable infrastructure > Expand the customer base through economic development • Enhance community relations and customer satisfaction These goals were a refinement of the goals established for 2001-2004. The strategic goals have been beneficial in focusing the PU Department's efforts for the benefit of all Riverside customers. Each Public Utilities Board member invests approximately 250 hours a year fulfilling board responsibilities, including the following:
> Two board meetings a month
One committee meeting each month
Two goal setting meetings a year
Various ad hoc meetings representing the City with elected officials in Sacramento and Washington, D.C.
> Represents Public Utilities at various community events 9-1
000267
T
Council Memorandum • Page 2
The utility enterprise is fiscally sound and has reserves as prescribed by bond convenants as well as reserves based on best management practices. The reserves are:
ELECTRIC WATER
Million Milllon
Cash Reserves $29.0 Cash Reserves $ 9.0
Restricted Cash $75.2 Restricted Cash $21.1
Operating Cash $15.5 Operating Cash $11.7
ELECTRIC
Riverside Public Utlities provides electric service to nearly 100,000 customers, with a service area population of approximately 266,000, encompassing over 85 square miles. Riverside Public Utilties owns, maintains, and operates 85.3 circult miles of transmission lines, 1,126 circult miles of distribution lines, 50 miles of fiber optic, 14 substations, and 4-10 MW generators.
The Electric Utility contributes 9 percent of operating revenue dollars to the City's General Fund. For FY 2002/03, this is estimated to be over $16.0 million. This money is essential for providing needed public services, such as library books, street repair, park maintenance, and public safety.
The Electric Utility acts competitively, with a sharp focus on customers, while maintaining a financially sound utility. Compared to other local utilities, Riverside's rates are lower, reliability is higher and more funds are returned to the local community in the way of low-income assistance, rebates and community support. The Electric division is targeting efforts to increase conservation and energy efficiency, and is developing strategies to increase the amount of renewable energy in its portfolio.
WATER
The Water Utility services over 60,000 customers, with a service area population of approximately 245,000, encompassing over 80 square miles. The Water Utility maintains its own distribution system, which contains 938 miles of pipeline ranging from 1-inch to 72-inch in diameter, 47 domestic wells, 16 active reservoirs (with a capacity over 100 million gallons), 12 miles of canals, and seven treatment plants.
The Water Utility is responsible for providing adequate water supplies to its customers. Compared to other utilities, Riverside's water rates are significantly lower. This includes assuring continued access to water resources while maintaining a high quality water supply and reliable water distribution system. The Water Utility has made significant strides in water treatment, with seven new treatment plants placed in service over the last several years. In addition, several significant water line replacements have been completed, ensuring improved reliability.
The Water Utility contributes 11.5 percent of operating revenues to the City's General Fund, which will amount to nearly $3.1 million for FY 2002/03.
The Board of Public Utilities has reviewed the City Charter and at its November 21, 2003 board meeting adopted the following recommended changes, which will benefit Riverside customers:
• Preference should be given to Riverside-based companies for construction contracts.
Add to Section 1202 to allow the Board of Public Utilities to award contracts over $50,000 within the approved City budget, without further approvals.
• Amend Section 1202(b) so that in addition to exceptions for "urgent necessity to preserve life, health, and property that customer-requested work provided under the rules adopted by the Board of Public Utilities and City Council also be exempt from approval requirements (subject to ratification by the Board after the fact)
9-2
000268
Council Memorandum • Page 3
• Add to Section 1202 delegation to the Public Utilities Director, without further authorization or approval, the power and authority to enter into long-term contracts to provide water and power in accordance with approved tariffs based on current cost of service studies up to seven years in length.
FISCAL IMPACT:
None.
ALTERNATIVES:
The alternative is not to revise Article XII of the City Charter but this is not recommended.
RECOMMENDATIONS:
That the City Charter Review Committee:
1. Approve the Board of Public Utilities' recommendations regarding Article XII of the City Charter pertaining to the Department of Public Utilties; and
2. Recommend appropriate changes to the City Council.
Prepared by:
nomas P. Evar
Public Utilities Director
TPE/cef
@:lpudir03085b_111203.mem.doc
Attachment: Board of Public Utilities minutes of November 21, 2003 -
9-3
000269
T
-Unapproved November 21, 2003, Minutes of the Board of Public Utilities -Scheduled for approval by the Board of Public Utilities at its regularly scheduled meeting on December 5, 2003. November 21, 2003 Board of Public Uttities
"UNOFFICIAL" Minutes
DISCUSSION CALENDAR
CITY CHARTER RECOMMENDATIONS BY THE PUBLIC UTILITIES
BOARD
The Board of Public Utilties moved the meeting to the Art Pick Council Chamber Board Room at 8:40 a.m. to discuss this item.
Troy Brown, Assistant to the City Manager, and Ray Higgins, a member of the Charter Review Committee, attended this meeting as guests.
Director Tom Evans explained each suggestion to the Board members and staff and advised what City Manager George Caravalho's input was for each suggestion. Each suggestion was thoroughly discussed and NOTE: fems i and wariot aproved for recommendeton to the chant Revol Committee):
The Board of Public Utilities:
(1) Established that items referred to the Charter Review Commission would be approved by simple majority;
(2) Concurred with the suggested changes;
(BOLDED print shows the addition to the original suggestion) (STRIKEOUT shows the deletion of the original suggestion) (a) Preference should be given to Riverside-based
companies for construction contracts.
(NOTE - 3 Board Members agreed and 2 Board Members disagreed - majority ruled)
Motion - Gage. Second - Newberry, Jr., P.E.
Ayes: Newberry, Jr., P.E., Tavaglione, and Gage.
Noes: Acharya and Barnhart
Abstain: None
Absent: Jim Anderson
Peter Hubbard
(b) Add to Section 1202 to allow the Board of Public Utilities to award contracts over $50,000 within the approved City budget, without further approvals.
Motion - Gage. Second - Tavaglione.
9-4
000270
T
November 21, 2003
Board of Public Utiles
"UNOFFICIAL" Minutes
Ayes: Acharya, Bamhart, Newberry, Jr., P.E.,
Tavaglione, and Gage.
Noes: None
Abstain: None
Absent: Jim Anderson
Peter Hubbard
10) Come soden or do to putate atmos
limited to city services.
Motion - Gage. Second - Tavaglione.
Ayes: Acharya, Barnhart, Newberry, Jr., P.E.,
Tavaglione, and Gage.
Noes: None
Abstain: None
Absent: Jim Anderson
Peter Hubbard
(d) Glarify Sostion 1200 to indicate that the appointment and termination of the Utilities Director is the responsibility of the Board and the City Managor:
Motion - Gage. Second - Tavaglione.
Ayes: Acharya, Barnhart, Newberry, Jr., P.E.,
Tavaglione, and Gage.
Noes: None
Abstain: None
Absent: Jim Anderson
Peter Hubbard
(e) Amend Section 1202(b) so that in addition to exceptions for "urgent necessity to preserve life, health, and property". that customer-requested work provided under the rules
adopted by the Board of Public Utilities and City
Council also be exempt from approval requirements
(subject to ratification by the Board after the fact).
Motion - Tavaglione. Second - Newberry, Jr., P.E.
ANS: Savagine, and Gag. Newbery, .., P.E.,
000271
November 21, 2003
Board of Public Utiltes
"UNOFFICIAL" Minutes
Noes: None
Abstain: None
Absent: Jim Anderson
Peter Hubbard
(1) Add to Section 1202 delegation to the Public Utilities Director, without further authorization or approval, the power and authority to enter into long-term contracts to provide water and power in accordance with approved
tariffs based on current cost of service studies up to
seven years in length.
Motion - Tavaglione. Second - Newberry, Jr., P.E.
Ayes: Acharya, Barnhart, Newberry, Jr., P.E.,
Tavaglione, and Gage.
Noes: None
Abstain: None
Absent: Jim Anderson
Peter Hubbard
(3) Authorized the Public Utilities' Director and Board of Public Utilities' Chairman to present the recommendations to the Charter Review Committee.
Motion - Tavaglione. Second - Newberry, Jr., P.E.
Ayes: Acharya, Bahart, Newbery, r, P.E, Tavagione, and
Noes: None
Abstain: None
• Absent: Jim Anderson
Peter Hubbard
DIRECTOR'S REPORT
(A) Open and Closed Work Orders - October 2003
(B) Draft Monthly Benchmark Report Cards - October 2003 (C) Financial Statements - October 2003
(D) Water Highlights - October 2003
(E) Rolling Calendar Outlining Future Ul) Projects as of November 14, 2003 000272
Section CH.1201 Board of public utilities-Composition; applicability of Article VIII of Charter.
There shall be a board of public utilities. All of the provisions of Article VIII of this Charter relating boards and commissions generally, to the organization, meetings, conduct of proceedings, anc ‹penses thereof, and to the appointment, qualifications, term of office, removal, compensation an powers of members thereof, where not inconsistent with the provisions of this Article, shall apply to the
9-7
000273
T
PUBLIC UTILITIES, BOARD OF Charter - Sections 1201 & 1202; 0-863NS and 0-4978. (Meetings: 1st & 3rd Fridays of each month at 8:15 a.m., Art Pick Council Chamber) - Citizens wishing to leave messages for any of the 7 Board members may call Cathy Ference at 828-5197.
Chairperson - Lailt N. Acharya Alternate - None
Vice Chairperson - Peter Hubbard
MEMBER WARD IERM BEGAN TERM EXPIRES
James W. Anderson 2 03-01-2000 03-01-2004
Joe Tavaglione 4 03-01-2001 03-01-2005
David E. Barmhart 5 10-18-2003 03-01-2005
Conrad Newberry Jr. 1 03-25-1997 03-01-2008*
Arthur Gage 3 03-29-2002 03-01-2006
Peter Hubbard 1 02-11-1999 03-01-2007*
Lalit N. Acharya 4 03-01-1999 03-01-2007*
"Second full term
G:ICLKBDCOMMIMASTERSlroaterpublic.doc
-
•
9-8
000274
1 ORDINANCE NO. 4978
2 AN ORDINANCE OF THE CITY OF RIVERSIDE, CALIFORNIA,
ESTABLISHING THE NUMBER OF MEMBERS OF THE VARIOUS
BOARDS AND COMMISSIONS ESTABLISHED BY THE CHARTER
OF THE CITY OF RIVERSIDE.
4 5 The City Council of the City of Riverside does ordain as follows:
7 Section 1: Pursuant to Sections 700, 703 and 1201 of
the Charter of the City of Riverside, the number of members of the following boards or conmissions shall be as follows:
10 a. seven menbet public Utilities shall have
b. The Board of Library Irustees shall have
12 seven members.
13 c. The Personnel Board shall have seven members.
14 • The Park and Recreation Connission shall ha
ine member:
16 mabershing Connission shal1 have nine
17 Section 2: The City Clerk shall certify to the adoption 18 of this ordinance and cause publication once in a newspaper of 19 general circulation in accordance with Section 414 of the 20 Charter of the City of Riverside. This ordinance shall become 21 effective on the 30th day after the date of its adoption. 22 ADOPTED by the City Council and signed by the Mayor and 23 attested by the City Clerk this 5th day of January, 1982. 24 25
26 27
28 Attest:
29 30 Piano riversido
31 12/21/8132
Jw/jm
CALIFORNIA
9-9
000275
1 I, Alice A. Hare, City Clerk of the City of Riverside, 2 California, hereby certify that the foregoing ordinance was 3 duly and regularly introduced at a meating of the City Council 4 on the 22nd day of December, 1981, and that thereafter 5 the said ordinance was duly and regularly adopted at a meeting of the City Council on the 5th day of January, 1982, by 7 the following vote, to wit:
Ayes: Councilnesbors Loveridge, Shepard, Manafield,
Bowera, Buster, Digati and Frizzel.
10 Noes: None.
= Absent: None.
12 IN WITNESS WHEREOF I have hereunto set my hand and
affixed the official seal of the City of Riveraide, California, 14 this 5th day of January, 1982.
15 16
17 18
19 city
20 21
22 23
25 26
27 28
29 30
31 32
CITY ATTORNEY
RIVERSIDE
CALIFORNIA
-2- 9-10
000276
....:
ORDINANCE NO. _963 (NEW SERIES)
1 2 CAVING TAN BOND OF OBEL TERES OF HERE OF
3 -- -
5 6 The Mayor and Counc11 of the City of Riveraide do
7 ordain as follows:
8 Section 1i The Board of Public UtilIties of the
9 City of Riverside 1s by thia ordinance given charge of tho 10 Itre and police traffle alarm systems, together mith the 11 charge, oversight and upkeep of the alectric street traffic 12 signals and the charge, oversight and upkeep of the war emer- 19 gency alr-rald alarm systems, in accordance with the provisions 14 of Section 136 of Artiole VIII of the Charter of the City of 15 Riverside.
16 Section 2: Ordinance No. 617 (New Serles) is
17 hereby repealed.
18 Section 32 The City Clerk shall certify to the
19 adoption of thia ordinance and sball cause the same to bo 20 posted on the bulletin board in the City Hall In sald City. 21 Raveraldo, Caironia 10raoy cordy a to cron
22 ordinance was duly and regularly introduced on the 3lst day 23 at Its neeting and on he day 40000000 of March, 1942, and was adopted by following vote:
24 Ayes: Councilaen Bawlings, Villiano, Darter.
25 Bargor, Delas, Bathgober and Harrie.
26 Noes: Hone.
27 Absent: Hone.
.)
I have hereunto set my hand and
affixed the official seal of
this 7th day of April,
of the CIty of RIversia
31 I hereby approve the foregoing ordinance this 7th day 9-11
000277
ONIIIIS ON THE CITY OLERK
I, G. Albert KIlis, Olty Blark of the Olty of
Riversido, Callfornia, horeby cartity that the forogoins ordinance Is a full, truo sad correct copy of Ordinaace No. 963 (Her Serios) of the Olty of Riversido, entitleds
AN ORDINANCE OF TEN CITT OF RIVRASIDE, CALITORNIA, OIVING
THE BOARD OF PUBLIO UTILITIZS OF THE CITY OF RIVERSID
CARON OF THE TIER AND POLICE TRATTIC AND ALARM SYSTENS,
TED ILICTRIC STREET TRATTIC SIGHALS, AND THE KAR SHEROSICI AIR-RAID LIARY SISTINE.
adopted by the Counoll of said Olty, at Its mosting hold on the 7th day of April ,1842, by the follorios votor
: Ayars Corer, Dale Lage, Wollad Carter
Nooss Nose.
Absents Hono.
which ordinance 1s now on file and of reaord in my offloes that the Bald ordinanoe was submitted to the Mayor of sald City on the Tthday of April • 1942, who, rithin ton days thereaftor, to-rits on tha 7t3 day of April , 1942, endorsed his approval thereon, that the ) sald ordinande vas in every raspoot passed and adopted, approved by the posted
Mayor, and pasziased accordine to the provolons of the Chartos of the Olty of Riversido.
IBIort of the Olty of Riversido
9-12
000278