8-1.02 Lump Sum or Job Contracts
Progress Payments will be based on the Schedule of Values prepared by the Contractor and approved by the City prior to acceptance of the first Progress Payment request (see Section 8-5, “Progress Payment Procedures”, below). If requested by the City, the Contractor shall furnish full copies of subcontracts showing actual costs. The Schedule of Values shall be consistent with the baseline progress schedule prepared by the Contractor pursuant to Section 7-5.02, “Progress Schedules”, of these General Provisions.
8-1.03 Payment for Mobilization
Mobilization shall consist of preparatory work and operations, including, but not limited to, those necessary for the movement of personnel, equipment, supplies, and incidentals to the site; for the establishment of all offices, buildings, and other facilities necessary for the Work; and for all other work and operations which must be performed, or costs incurred, prior to beginning the Work.
Payment for mobilization will be as follows:
8-1.03.A Mobilization Not a Pay Item
When the Contract does not include a separate pay item for mobilization, full compensation for mobilization will be included in the Contract lump sum price or in the prices paid for the various items of work in a unit price contract, and no additional compensation will be paid.
8-1.03.B Mobilization a Pay Item
When the Contract or accepted Schedule of Values includes a separate item for mobilization, payment for mobilization will include full compensation for the furnishing of all labor, materials, tools, equipment, administrative costs, and incidentals for mobilization. 522
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The City will pay no greater than five percent (5%) of the Total Contract Price as a separate pay item for mobilization. In the event the Contractor submits a mobilization pay item greater than five percent (5%) of the Total Contract Price, the City will pay any excess mobilization amount with the final progress payment.
Absent City approval, the City will not pay additional mobilization compensation for work under a Change Order.
Payment for mobilization shall be subject to retention per Section 8-7, "Retention", of these General Provisions.
8-2 SCOPE OF PAYMENT
8-2.01 General
Compensation under the terms of the Contract shall be full payment for the Work, including loss or damage arising from the nature of the Work, action of the elements, or unforeseen difficulties encountered during the prosecution of the Work and until its final acceptance; and all risks connected with the prosecution of the Work.
8-2.02 Unit Price Contract
Progress payments will be made based upon the unit price bid and measured quantities for work completed, plus work completed on approved Change Orders. For compensation for alterations in quantities of work, including deviations greater than twenty-five percent (25%), see Section 9-8.02, “Payment for Changes – Unit Prices”, in these General Provisions.
8-2.03 Lump Sum or Job Contract
Progress payments will be based upon the approved Schedule of Values for work completed, plus work completed on approved Change Orders.
8-2.04 Final Pay Items
An item designated as a Final Pay Item in the Contract shall be paid for as specified in Section 9-1.02C, “Final Pay Item Quantities”, of the State Specifications.
8-2.05 Allowances
Allowances may be included in the Bid Form for materials and/or work that may be added during the course of the Contract. The Allowance may be used in whole, in part, or not at all as determined by the City. Whenever costs of the Work included in the Allowance item are more or less than the specified Allowance amount, the Total Contract Price will be adjusted accordingly by Contract Change Order. The Contractor shall make no claim nor receive any compensation for anticipated profits, loss of profit, damages, or any extra payment due to any difference between the amount of work actually completed, or materials or equipment furnished, and the Estimated Quantities for the Allowance.
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8-2.06 Payment for Material Not Incorporated in the Work
No Progress payments will be made for materials and equipment not incorporated in the Work, unless specifically set forth in the Special Provisions or authorized by the City.
8-3 WORK TO BE DONE WITHOUT DIRECT PAYMENT
Compensation for any portion of the Work not specifically identified in the Bid Form or Schedule of Values is understood to be included in the price for other items, unless specified in the Special Provisions as extra work. No additional compensation is allowed for additional shifts or premium pay necessary to ensure that the Work is completed within the time limits specified in the Contract.
8-4 PAYMENT FOR USE OF COMPLETED PORTIONS OF WORK
If the City occupies or uses a portion of the Project under Section 4-10, above, before it accepts Completion of the Work, the Contractor will only be compensated in accordance with this Chapter 8. No final payment shall occur for a limited portion of the work.
8-5 PROGRESS PAYMENT PROCEDURES
No progress payment will be made when, in the judgment of the City, the Work is not proceeding in accordance with the provisions of the Contract or when the total work done since the last progress payment amounts to less than one thousand dollars ($1,000). Unless otherwise agreed to at the preconstruction meeting or identified in the Special Provisions, the Contractor shall submit in writing monthly for City review an estimate of the total amount and value of work done, including that done under approved Change Orders, and the acceptable materials furnished and incorporated in the work completed through the last day of the previous pay period. The Bid Form or Schedule of Values shall be used to prepare a progress payment request for the items, or portions of items, of the Work completed during the monthly progress period.
Unless specified otherwise in the Special Provisions, any progress payment request must be accompanied by (1) an updated Progress Schedule that complies with the Contract; (2) record drawing update confirmations; (3) a conditional lien release in the form prescribed by law warranting that title to all work, labor, materials and equipment covered by the request is free and clear of all liens, claims, security interests or encumbrances; and (4) unconditional lien releases for all work through the prior progress payment lien releases. If Contractor fails to submit these documents with the progress payment request, then City, in its sole discretion, may withhold part of the progress payment or reject the progress payment request with an explanation in writing of the reason. Contractor may resubmit the progress payment request with the required documents. City has no obligation to process the progress payment request or make a progress payment if Contractor fails to provide these required documents.
If the required documents are submitted with the progress payment request, then the City shall review any progress payment request submitted by Contractor to determine its accuracy and validity. Any payment request determined not to be a proper payment request suitable for payment shall be returned to the contractor as soon as practicable, but not later than seven days, after receipt, along with a document stating the reasons why the payment 524
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request is not proper. Once the City has an undisputed and properly submitted payment request from Contractor, the progress payment shall be made within 30 days of its submission.
Once the City agrees with Contractor as to the amount of Work completed as of the date of the progress payment request, the City shall deduct the following from the estimated total value of that amount of Work: All previous payments, the retention previously withheld pursuant to Section 8-7, “Retention”, of these General Provisions, and other withholdings as permitted by the Contract. The City will then approve the balance for payment to the Contractor, with retention being withheld from that approved payment as described in Section 8-7 of these General Provisions.
The payment of a progress payment or the acceptance thereof by the Contractor does not constitute acceptance by the City of any portion of the Work, and does not reduce the Contractor’s liability to replace unsatisfactory work, material, or equipment for any or the Work, whether or not completed. Approval by the City of a progress payment request that contains an inadvertence or error by the Contractor will not release the Contractor or the Contractor's surety from damages arising from the work covered by the approved payment request or from enforcement of every provision of the Contract. The City also has the right to correct any error made in any Progress Payment and may withhold as much payment as necessary to correct the error in later progress payments.
8-6 INSPECTION AND PROGRESS PAYMENTS NOT A WAIVER OF CONTRACT
PROVISIONS
No inspection, order, measurement, approval, modification, payment, acceptance of work or material (including, but not limited to, acceptance of the entire Work), time extension, or possession of the Work or any part thereof shall be a waiver of any of the terms and conditions of the Contract, the powers reserved by the City, or any right of the City to damages or to reject the Work in whole or part. No breach of this Contract shall be construed a waiver of any other or subsequent breach. All remedies provided in the Contract shall be cumulative and shall be in addition to all other rights and remedies that may exist at law or in equity.
8-7 RETENTION
8-7.01 Retention to Ensure Performance
The City will retain five percent (5%) of each approved progress payment to ensure performance under the Contract. The parties acknowledge that some of the purposes of retention under this Contract are to encourage the Contractor to reach Completion quickly, to ensure that Contractor completes the Work in its entirety, and to provide funds from which the City may withhold for disputes, costs and claims under Section 8-8, “Withholdings/Denial of Progress Payment Request”, of these General Provisions.
Retention will be held by the City until at least thirty-five (35) Calendar Days, but no more than sixty (60) Calendar Days after recording of the Notice of Completion. However, the City may continue to withhold some or all of the retention beyond 60 days to the extent that any disputed amounts or Stop Payment Notices or liquidated damages exist, in which case the City may withhold 150% of the disputed amount and 125% or more of outstanding Stop 525
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Payment Notices and full amount of liquidated damages.
8-7.02 Non-Compliance
In addition to the five percent (5%) payment retention discussed above, the City may also retain portions or all of a progress or final payment for Contractor’s noncompliance with the Contract in an amount deemed appropriate by the City.
8-7.03 Substitution of Securities
At the request and expense of the Contractor, in accordance with Public Contract Code Section 22300, in lieu of the City withholding the five percent (5%) retention defined in Section 8-7.01 of these General Provisions, the Contractor may: (1) substitute a deposit of securities at least equivalent to the retention to be paid, or (2) request that the City pay the withheld retention directly to an escrow agent. If the Contractor elects either option, the Contractor and City shall enter an escrow agreement in the exact form set forth in Public Contract Code Section 22300.
8-8 WITHHOLDINGS/DENIAL OF PROGRESS PAYMENT REQUEST
The City may deny a progress payment request and/or withhold amounts from a progress payment and/or withhold a release of retention for any of the following reasons:
• Stop payment notices filed pursuant to Civil Code Sections 9350 et seq., including but not limited to a reasonable amount to provide for the City’s reasonable cost (including but not limited to attorneys’ fees and experts’ fees) of litigation based on the stop notice;
• Fines levied against Contractor or the Work by the City or other entities;
• Third party claims against Contractor or the City arising from the acts or omissions of Contractor or its subcontractors;
• Defective Work not remedied;
• Previous overpayments to Contractor;
• Failure by the Contractor to make payments properly to employees or Subcontractors for labor, materials, or equipment;
• Any portion of the Work retained in accordance with Section 5-19 of these General Provisions;
• The Work may not be completed for the unpaid balance of the Contract sum;
• The Work may not be completed within the Contract Time and the City will incur actual and/or liquidated damages;
• Review of excessive resubmittals, and excessive inspections or tests; 526
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• Replacement of survey stakes and excessive survey work;
• Failure by the Contractor to maintain and update Record Drawings;
• Damage to the City or another contractor;
• Failure by the Contractor to perform the Work in accordance with the Contract;
• Failure by Contractor to submit the necessary documents with a progress payment request;
• Cost of insurance purchased by City due to cancellation or reduction of coverage of Contractor’s insurance;
• Failure by Contractor to make proper submissions under the Contract;
• Any violation or non-compliance with Contractor’s legal responsibilities (see Chapter 6, “Legal Relations and Responsibilities” of these General Provisions), including withholds for wages adjustments in accordance with the California Labor Code and any fines incurred by the City as a result of the Contractor’s actions; and/or
• Any amounts otherwise necessary to protect the City's interests and/or compensate the City for past, present and future damages.
In addition to withholding a reasonable amount based on the above grounds, the City may withhold an additional 50% of that reasonable amount from a progress payment or release of retention; except that it may withhold an additional 25% or more of the Stop Payment Notice amount to provide for its reasonable cost (including but not limited to attorneys’ fees and experts’ fees) of any litigation based on a Stop Notice.
If, on Completion or termination of the Contract or termination of the Contractor’s control over the Work, sums withheld from the Contractor are insufficient to cover the City’s charges against the Contractor, the City has the right to recover the balance from the Contractor or the Contractor's surety.
8-9 DEDUCTIONS FOR IMPERFECT WORK
For any portion of the Work, materials or equipment retained in accordance with Section 5-20 of these General Provisions, the City will deduct from a Progress Payment a reasonable amount to represent the decreased or lost value to the City.
8-10 LIQUIDATED DAMAGES FOR DELAY
If the Work is not completed by the Contractor in the time specified in the Contract Documents, or within any period of extension authorized pursuant to this Chapter of these General Provisions, the Contractor acknowledges and admits that the City will suffer damage, and that it is impracticable and infeasible to fix the amount of actual damages. 527
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Therefore, it is agreed by and between the Contractor and the City that the Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum specified in the Contract Documents for each Calendar Day of delay until the Date of Completion, and that both the Contractor and the Contractor’s surety shall be liable for the total amount thereof, and that the City may deduct Liquidated Damages from any monies due or that may become due to the Contractor. If it appears during the course of construction that the Contractor is behind schedule and the imposition of liquidated damages is likely, or if liquidated damages begin to accrue prior to the time for final payment, the City may, at its discretion, withhold the amount accrued from any progress payment that would otherwise be due. This right to withhold funds is in addition to the City’s other rights under the Contract Documents.
This liquidated damages provision shall apply to all delays of any nature whatsoever, save and except only delays found to be excusable or time extensions granted by the City.
Pursuant to Government Code Section 4215, the Contractor shall not pay fixed and liquidated damages for delay in completing the Project caused by the failure of the City or the owner of utility facilities located on the Project site to provide for removal or relocation of such facilities.
Payment by the City of any progress payments after liquidated damages have accrued shall not constitute a waiver by the City of its right to claim liquidated damages.
If the Contract is terminated for cause, then the Contractor shall be liable to the City for liquidated damages for all periods of time from the scheduled Contract Completion Date at the time of such termination, as that date may be adjusted by any extensions of time to which the Contractor is entitled, until the Date of Completion.
8-11 FINAL ESTIMATE AND PAYMENT
Subsequent to field acceptance as detailed in Section 7-21 of these General Provisions, and within thirty (30) Calendar Days after field acceptance the Contractor shall provide a proposed final payment request, segregated as to Contract item and Change Order work.
Contractor shall submit all previously unsubmitted documents required by the Contract with the request; otherwise the City has the right to reject the request and require submission of these documents.
The City will review the properly submitted proposed final payment request and, after withholding for all issues as permitted by Section 8-8 of these General Provisions and making other corrections as necessary, shall return its approved Final Payment request as modified, within fifteen (15) Calendar Days of receipt. All progress payments shall be subject to correction in the final payment. If the Contractor fails to file a final payment request within the time allotted, the City may create and approve one based on the best information available to it.
Within fifteen (15) Calendar Days after the approved final payment request is submitted to the Contractor, the Contractor shall submit back to the City a written approval of said request or a written statement of exceptions to be considered a “closeout” claim. The Contractor’s statement of exceptions shall be in sufficient detail for the City to ascertain the basis and amount of the exceptions, and will include supporting documentation as detailed in Section 528
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9-18.03 of these General Provisions. Failure to provide sufficient detail shall be cause for denial of the exceptions.
Any claim of the Contractor or Subcontractors or suppliers with respect to the performance or breach of the Contract or any alterations thereof (except for payment of the balance of the Contract price as set forth in the final payment request) not specifically set forth in the statement of exceptions, is waived by the Contractor. If the Contractor fails to file a statement of exceptions within the time allowed, Contractor waives its right to submit a statement of exceptions and the approved final payment request will be deemed to as accepted and approved by the Contractor.
The City shall process the final payment and a release of retention in accordance with the approved final payment request. The payment of undisputed sums due for the final payment, and excluding any sums withheld for Stop Payment Notices, shall be made within thirty-five (35) days of the Contractor’s acceptance of the approved final payment request or within sixty (60) days after the recording of the Notice of Completion, whichever is later. The release of retention shall be made in accordance with Section 8-7 of these General Provisions. If the Contractor submits a timely statement of exceptions, then the City shall process these payments as a semifinal action; otherwise the payment shall be considered final.
The City shall respond in accordance with the provisions of Section 9-18 with its final decision regarding the claims and exceptions set forth by Contractor. Should the City’s final decision grant some or all of Contractor’s claims or exceptions, then to the extent necessary a supplemental final payment and/or supplemental final release of retention shall be processed within thirty (30) days.
Any claim or exception set forth by Contractor for which Contractor did not follow the required claim procedures in the Contract Documents shall be disallowed; by failing to follow the required claim procedures prior to Contractor's written statement of claims and exceptions, Contractor will have waived all rights to compensation (whether money or time) related to such claim or exception. If not already expired, the running of time for presenting a Government Code claim (see Government Code sections 900 et seq.) shall be tolled from the time of the Contractor’s timely statement of exceptions until the City’s final decision on the statement of exceptions.
8-12 FINAL PAYMENT TO TERMINATE LIABILITY OF CITY
If Contractor fails to timely submit a statement of exceptions, the Contractor’s acceptance of the final payment and final release of retention shall release the City and the City’s officers, officials, agents, employees, members, volunteers, affiliates, and their duly authorized representatives from all claims or liability on account of all Work performed or any alterations thereof. If Contractor timely submits a statement of exceptions, the Contractor’s acceptance of the semifinal payment and semifinal release of retention shall release the City and the City’s officers, officials, agents, employees, members, volunteers, affiliates, and their duly authorized representatives from all claims or liability on account of Work performed or any alterations thereof, except unresolved items set forth in the statement of exceptions.
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8-13 DISPUTED PAYMENTS
The City will decide disputes regarding payments under the Contract according to the procedures set forth in Chapter 9, “Changes and Claims”, of these General Provisions. The decision of the City will be final.
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CHAPTER 9 - CHANGES AND CLAIMS
TABLE OF CONTENTS
Section Page
9-1 AUTHORITY FOR CHANGES ..................................................................................... 110 9-2 ORDERING OF CHANGES ........................................................................................ 110 9-3 CONSTRUCTION INCENTIVE CHANGE PROPOSAL (CICP) ................................... 110 9-3.01 General ........................................................................................................... 110 9-3.02 Description ...................................................................................................... 111 9-3.03 Submittal ......................................................................................................... 111 9-3.04 Acceptance ..................................................................................................... 112 9-3.05 Sharing Provisions and Formula ..................................................................... 112 9-4 DELETED ................................................................................................................... 113 9-5 PROSECUTION OF CHANGES TO THE CONTRACT ............................................... 113 9-6 COST AND PRICING DATA ....................................................................................... 114 9-7 ACCESS TO RECORDS ............................................................................................. 114 9-8 PAYMENT FOR CHANGES ........................................................................................ 114 9-8.01 Lump Sum Price .............................................................................................. 114 9-8.02 Unit Prices ....................................................................................................... 114 9-8.03 Force Account ................................................................................................. 115 9-8.03.A Labor ........................................................................................................... 115 9-8.03.A.(1) Actual Wages ......................................................................................... 115 9-8.03.A.(3) Subsistence and Travel .......................................................................... 115 9-8.03.B Materials ...................................................................................................... 116 9-8.03.C Equipment ................................................................................................... 116 9-8.03.D Subcontracts................................................................................................ 116 9-9 MARKUPS FOR CHANGED WORK ........................................................................... 116 9-10 COMPENSABLE EXCUSABLE DELAYS .................................................................. 117 9-10.01 Construction Equipment ................................................................................ 117 9-10.02 Jobsite Indirect Costs .................................................................................... 117 9-10.03 Markup for Compensable Excusable Delays ................................................. 118 9-10.04 Duplicated Overhead Costs .................................................................... 118 9-11 LIMITATIONS ON PAYMENTS FOR CHANGED WORK ...................................... 118 9-12 TIME EXTENSIONS FOR CHANGES ....................................................................... 118 9-13 EFFECT ON SURETIES OF CHANGES TO THE WORK ......................................... 118 9-14 CONTRACT CHANGE ORDER ................................................................................ 119 9-15 ACCEPTANCE OF ORDERS FOR CHANGES ......................................................... 119 9-16 DISPUTE REGARDING CONTRACT REQUIREMENTS .......................................... 119 9-17 NOTICE OF POTENTIAL CLAIM .............................................................................. 119 9-18 SUBMISSION OF CLAIMS ................................................................................ 120 9-18.01 Definitions ..................................................................................................... 120 9-18.02 Claims Procedure. ......................................................................................... 121 9-18.03 Documentation of Claims by Contractor ........................................................ 124 9-19 ENGINEER’S DECISION .......................................................................................... 125 9-20 ALTERNATIVE DISPUTE RESOLUTION.................................................................. 126 9-21 NO ALTERNATIVE CLAIMS PROCEDURE .............................................................. 126 9-22 ASSIGNMENT OF CLAIMS....................................................................................... 126
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CHAPTER 9 CHANGES AND CLAIMS
9-1 AUTHORITY FOR CHANGES
The City reserves the broad right to order or direct corrections, alterations, additions, modifications, deletions or other changes as required for the proper completion of the Work.
The order or directive may be issued prior to the final acceptance of the Contract without voiding the Contract, without notice to the Contractor’s sureties, and in accordance with the provisions of Section 9-2, “Ordering of Changes”, of these General Provisions.
The Contractor shall not perform corrections, alterations, additions, modifications, deletions, or other changes to the Work without a written directive or order from the City, in accordance with Section 9-2 of these General Provisions. Payment for changed or extra work will not be made without the City’s written authorization.
9-2 ORDERING OF CHANGES
The City may order or direct, including, without limitation, through a Field Directive, a change, in writing, during the course of the Work, and the Contractor shall immediately comply with the order or directive. Changes to the Work shall in no way affect, vitiate, or make void the Contract or any part thereof, except that which is necessarily affected by such changes and is clearly the evident intention of the parties to the Contract.
Changes to the Work may be initiated as described in Section 4-5, “Field Directives or Other Written Directives”, of these General Provisions. If the City and Contractor agree that compensation in the form of an adjustment to the Total Contract Price and/or the Contract Time is required, then the adjustment will be formalized in a Change Order, in accordance with Section 9-14, “Contract Change Order”, of these General Provisions. Failure of the City and Contractor to agree to terms of a Change Order based on an order or directive shall not relieve the Contractor of his obligation to complete all work specified in the order or directive.
9-3 CONSTRUCTION INCENTIVE CHANGE PROPOSAL (CICP)
9-3.01 General
The Construction Incentive Change Proposal (CICP) Program provides a program for the Contractor to use its expertise to improve Contract performance to create an overall reduction in the Total Contract Price. Proposing to delete work is not a CICP. Deleted work is addressed in Section 4-8, “Deleted Items,” in these General Provisions. The CICP Program shall not apply to City contracts of less than one hundred thousand dollars ($100,000). The Contractor and Subcontractors may participate in the CICP Program.
Participation of Subcontractors shall be through the Contractor, and the Contractor and Subcontractors must agree upon the sharing arrangement; written evidence of such agreement must be submitted with the CICP.
The Contractor shall proceed with the Work as scheduled until the Contractor receives the City’s written approval of a CICP. The City shall be the sole judge of the acceptability of a CICP and of the net capital cost reduction from the adoption of all or any part of the CICP
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9-3.02 Description
A CICP is a formally written proposal for a Contract Change Order. A CICP must be initiated, developed, and identified as such by the Contractor or Subcontractor through the Contractor as identified in Section 9-3.01. A CICP must result in a net capital cost reduction while causing no increase in the total life cycle cost of the Project and shall comply with the following conditions:
• Required function, reliability, and safety of the Project will be maintained without detracting from the life expectancy or increasing maintenance requirements.
• The proposed change shall not cause undue interruption of the Work, nor shall it extend the Contract Time.
• The proposed change shall comply with all applicable permits, regulations, and code requirements, and any other requirements as set forth in the Contract. The proposed change shall not involve payment of royalties by the City to the Contractor.
9-3.03 Submittal
The Contractor shall submit a brief description of the proposed CICP prior to preparing the detailed submittal as outlined below.
A CICP submittal must contain pertinent information in supporting documents for City evaluation. As a minimum, the following information shall be submitted:
1. Name of individuals associated with the development and preparation of the CICP.
2. A detailed description and duly signed plans and specifications showing work as presently designed and the proposed changes.
3. A clear identification of all advantages and disadvantages for each proposed change.
4. A detailed procedure and schedule for implementing the proposed change.
This detailed procedure and schedule shall include all necessary Contract amendments. Also indicated must be the latest date that the CICP can be approved for implementation.
5. A summary of estimated costs, including the following:
a. Project construction costs before and after the CICP. This shall be a detailed estimate identifying the following items for each trade involved in the CICP:
• Quantities of material and equipment.
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• Unit prices of materials and equipment.
• Labor hours and rates for installation.
• Subcontractor and prime Contractor mark ups.
• Operation and maintenance costs before and after the CICP.
• Cost for implementing the CICP not included elsewhere.
b. Contractor’s share of the savings based on the sharing provision in Section 9- 3.05, “Sharing Provisions and Formula,” in this Section of these Specifications.
c. Other data as required by local permits and regulations and code requirements as set forth in the Contract.
6. Time required for execution of the proposed change.
To the extent indicated herein, the Contractor may restrict the City’s use of any CICP or the supporting data submitted pursuant to the CICP program.
Suggested wording for inclusion in CICPs is as follows:
“This data furnished pursuant to the construction incentive clause of the Contract shall not be disclosed or duplicated in whole or in part beyond what is necessary to accomplish the review. This restriction does not limit the City’s right to use the information if it is available from any source without limitations. The City has the right to duplicate, use and disclose any information if the CICP is accepted.”
The City may modify, accept, or reject the CICP. However, if the CICP is modified or not acted upon within the time allotted in the proposal, or if it is withdrawn or rejected, the City will not be liable for the Contractor's cost of developing the CICP.
9-3.04 Acceptance
The City will use the processing procedure specified for Change Orders in Section 9-14, “Contract Change Order,” in these General Provisions, if a CICP is accepted. The City’s written approval of the CICP is required. If the CICP is rejected, the Contractor shall not appeal the decision.
9-3.05 Sharing Provisions and Formula
Upon acceptance of the CICP, the Contractor will receive 50 percent (50%) of the Net Capital Savings based upon the following formula:
Net Capital Savings = Contract Cost Prior to CICP - (Revised Contract Cost After CICP + CICP Development Cost + CICP Implementation Cost)
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The Contractor's development cost is limited to that directly associated with the preparation of the CICP package. Development costs will be reimbursed after approval. However, the City will reject costs that cannot be satisfactorily substantiated.
The CICP implementation costs include, when appropriate, the City’s engineering costs for reviewing and redesigning the changes. However, City costs for processing the CICP are excluded.
9-4 DELETED
9-5 PROSECUTION OF CHANGES TO THE CONTRACT
If directed by the City, within fourteen (14) Calendar Days of issuance of a Request for Proposal, the Contractor shall provide a Proposed Change Order with a cost and/or time proposal prepared in accordance with the requirements of this Section, and Sections 9-8 and 9-12 of these General Provisions. The Contractor’s Proposed Change Order shall indicate the amount to be added or deducted from the Total Contract Price, supported by complete details of all Contractor, Subcontractor, vendor or supplier costs per Section 9-6, “Cost and Pricing Data”, of these General Provisions.
If the Contractor does not submit a Proposed Change Order within fourteen (14) Calendar Days, and unless the City is otherwise notified within fourteen (14) Calendar Days of a potential cost impact, the Contractor agrees to perform the work described in the change request with no additional compensation.
If the change causes a change in the monetary compensation or contract time the Project Manager will issue a Change Order in accordance with Section 9-14, “Contract Change Order” of these General Provisions. If a Field Directive or other written order is issued on a force account basis, the Contractor must immediately begin keeping records in accordance with Section 9-8.03, “Force Account”, of these General Provisions. When the City and Contractor cannot agree on the credit for work deleted by a written order, the City’s estimate will be deducted from the Total Contract Price, unless the Contractor presents proof prior to the final payment that the City’s estimate is in error.
If agreement for a change in the Work is reached regarding payment, but not a time adjustment, the City shall have the right to direct the Contractor to proceed with the change at the agreed price. The impact of the changed work on the project schedule will be considered by the City in accordance with Section 9-12, “Time Extension for Changes”, of these General Provisions.
Failure of the parties to reach agreement regarding the costs and time of the performing the change in the Work and/or any pending protest shall not relieve the Contractor from performing the change in the Work promptly and expeditiously. The Project Manager may unilaterally direct the Contractor in writing to perform changes in or additions to the scope of the Contract. The Contractor shall perform such work and shall be compensated pursuant to the provisions of Section 9-8, “Payment for Changes”, of these General Provisions.
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9-6 COST AND PRICING DATA
Cost and pricing data submitted by the Contractor shall be true, complete, accurate, and current. The City may require a formal certification to verify Contractor-submitted cost and pricing data. Additional requirements for cost and pricing data may also be included in the Special Provisions. The City shall have access to the records supporting such cost and pricing data in accordance with the Section 9-7, “Access to Records”, of these General Provisions.
9-7 ACCESS TO RECORDS
Upon reasonable notice and during normal business hours, the City shall have access to the Contractor’s and Subcontractors’ records for the purpose of verifying, auditing, and evaluating the accuracy of cost and pricing data submitted by the Contractor. “Records” as used in this Section shall include, but not be limited to: original estimates, subcontract agreements, purchase orders, books, documents, accounting records, papers, project correspondence, project files, and scheduling information necessary to determine the direct and indirect costs, job site, area and home office overhead, delay and impact costs. Records shall include the original Bid and all documents related to the Bid and its preparation, the as- planned construction schedule and all related documents. Such access shall include the right to examine and audit such records and make excerpts, transcriptions, and photocopies at the City’s cost.
9-8 PAYMENT FOR CHANGES
The method of payment agreed upon by the Contractor and the City, or selected by the City at its sole discretion in the absence of any other agreement, shall be set forth in the Request for Proposal or in the written order directing the change.
The three methods of payment are as follows:
9-8.01 Lump Sum Price
The Contractor shall submit a lump sum price proposal. The proposal shall include an estimate of labor, material, equipment, Subcontractor, material supplier costs, and any surcharges and/or markups as allowed in Section 9-9, “Markups for Changed Work” in these General Provisions.
In the event that the parties are unable to agree as to the reasonable costs and time to perform the change in or addition to the Work based upon the Contractor's proposal and the Project Manager and City do not elect to have the change in the Work performed on a time and material basis, the Project Manager and City shall make a unilateral determination of the reasonable cost and time to perform the change in the Work, based upon their own estimates, the Contractor's submission or combination thereof.
9-8.02 Unit Prices
If payment for Contract work is based on unit prices, payment for changed work will be made based on actual quantities of work done at the unit prices contained in the Contract or unit prices otherwise agreed upon by the City and Contractor if none are contained in the 536
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Contract. Payment for changed work based on Contract or agreed upon unit prices includes the full cost of the item of work including profit and overhead; and no additional payment or adjustment will be allowed. If the final quantity of any item of work required under the Contract varies from the Engineer’s Estimate by twenty-five percent (25%) or more, compensation will be adjusted in accordance with Section 9-1.06, “Changed Quantity Payment Adjustments”, of the State Specifications.
9-8.03 Force Account
In the absence of either an agreed lump sum price or unit prices for the change, the City may direct the Contractor to proceed with the changed work on a force account basis. The Contractor shall keep and present, in a form acceptable to the City, a complete and correct accounting of all costs associated with the change, including all pay records, vouchers, invoices, etc. The Contractor will be paid for labor, materials, and equipment actually used during the performance of the changed work as specified in this Section of these General Provisions in Sections 9-8.03.A, “Labor”, 9-8.03.B, “Materials”, and 9-8.03.C, “Equipment”; plus the percentages stipulated in Section 9-9, “Markups for Changed Work”.
To facilitate agreement on direct craft labor hours, construction equipment hours, and material quantities, the Contractor shall notify the City not less than four (4) hours prior to starting force account work. The Contractor shall submit Daily Work Reports (DWR’s) for signature not later than 9:00 a.m. the day following performance of any force account work.
DWR’s shall list names of all Contractor’s staff, the staff person’s craft or trade, all craft or trade labor hours, and all material and construction equipment used. The Contractor shall use the DWRs in preparing billings for force account work.
9-8.03.A Labor
The Contractor will be paid the cost of direct labor (foreperson and below) used in the actual and direct performance of the changed work including working foreman when authorized by the City. Except as otherwise provided, the Contractor will receive no additional compensation for overtime work without prior written authorization from the City. The cost of labor will be the sum of the following:
9-8.03.A.(1) Actual Wages
Charges for labor will be the Contractor’s actual payroll costs for labor of any classification, including employer payments to or on behalf of the workers for health and welfare, pension, vacation, and similar purposes.
9-8.03.A.(2) Labor Surcharge
A twenty-six percent (26%) surcharge for taxes, insurance, and all other payments made to or on the behalf of the employee shall be added to the actual wages.
9-8.03.A.(3) Subsistence and Travel
The City will pay the Contractor for actual subsistence and travel allowance costs associated with the changed work required by labor agreements or acceptable to the City.
Documentation must be provided to the City.
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9-8.03.B Materials
Payment will be for the purchaser’s actual cost of supplier or vendor furnished materials. If the Contractor does not furnish satisfactory evidence of the cost of such materials, the cost will be the lowest current wholesale price at which such quantities of materials are available and delivered to the job site. The City reserves the right to purchase materials for the changed work; the Contractor shall have no claims for costs or profit on such materials.
9-8.03.C Equipment
The prices paid for equipment directly and solely required for performance of the changed work will be those listed in the current edition of the Caltrans publication, “Labor Surcharge and Equipment Rental Rates”. If the equipment is not shown in this publication, the Contractor shall be paid such hourly rental rates as are agreed upon by the Contractor and the City prior to use of the equipment, plus thirty-three and one-third percent (33-1/3%) for the cost of fuel, oil, lubrication, and field repairs and maintenance. In no case shall the hourly rental rates exceed those of established distributors or equipment rental agencies serving the area.
The rate paid for the use of equipment constitutes full compensation to the Contractor for all costs, including fuel, power, oil, lubrication, supplies, small tools, small equipment, necessary attachments, repairs and maintenance of any kind, depreciation, storage, insurance, labor (except for equipment operators) and any and all costs to the Contractor incidental to the use of such equipment for the changed work.
Payment will not be made for the equipment while it is inoperative due to breakdowns or for time in which no changed work was performed. Payment for rentals will include time required to move equipment to the changed work from the nearest available rental source and to return it to the source. However, no moving, loading, or transportation costs will be paid if the equipment is used for any other portion of the Work.
Individual tools and pieces of equipment having replacement value of five hundred dollars ($500) or less shall be considered tools or small equipment and no payment will be made for those pieces of equipment.
9-8.03.D Subcontracts
Subcontract costs shall be the actual cost to the Contractor for work performed by a Subcontractor. The provisions of this Section 9-8.03, “Force Account”, apply to the computation of subcontract costs. Subcontractors shall compute markups per the Section 9- 9, “Markups for Changed Work”, of these General Provisions.
9-9 MARKUPS FOR CHANGED WORK
Only the direct costs directly attributable to the performance of the changed work shall be allowed. All other costs shall be included in the allowed markups, including, but not limited to, profit, home office and field overhead, jobsite indirect costs, extended overhead, jobsite office personnel, general field superintendence, general engineering, supervision of labor, bond and insurance premiums, and general field expense, and shall constitute full 538
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compensation for all costs not included as actual labor, materials, equipment, or Subcontractor costs. Markups for changed work shall not exceed the following:
Labor 25%
Materials 15%
Equipment Rental 15%
Bonds and Insurance 2%
The Contractor or Subcontractor, whomever actually performs the changed work, may add the markups to the total of allowable costs. When a Subcontractor performs work, the Contractor and any higher tiered Subcontractor may add as mark-up to the total of allowable costs an amount not to exceed five percent (5%), subject to the limitations of this Section.
When the City is entitled to credit for deleted work, a ten percent (10%) credit for deleted overhead of the Contractor or Subcontractor, as applicable, will be added to such credit.
9-10 COMPENSABLE EXCUSABLE DELAYS
Payments will be made as follows for compensable excusable delays, as defined in Section 7-12.02, “Excusable Delays”, of these General Provisions. Contractor waives any and all monetary compensation for excusable delays other than the items listed below.
9-10.01 Construction Equipment
Compensation will be paid for construction equipment idle as a result of a compensable excusable delay to the extent costs are incurred. The prices paid for equipment will be those in the current edition of the Caltrans publication, “Labor Surcharge and Equipment Rental Rates”, with the following modifications:
• The right-of-way delay factor for each classification of equipment will be applied to the rental rate.
• Compensation will be provided for the actual time of the delay, but not more than eight (8) hours per day.
Compensation will be provided for each day or portion of a day, excluding Saturdays, Sundays and holidays, for the duration of the delay, unless the approved current schedule identifies critical path work for these days.
9-10.02 Jobsite Indirect Costs
Indirect costs shall be limited to the following:
1. Actual payroll costs for field office staff incurred as a result of the delay, including management, supervision, safety, estimating, engineering, drafting, clerical, secretarial and accounting. A twenty-six percent (26%) surcharge for taxes, insurance, and all other payments made to or on the behalf of the employee may be added to the payroll costs.
2. Actual cost for third-party services provided for the field office, such as 539
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management, supervision, safety, estimating, engineering, drafting, clerical, secretarial, and accounting utilized in lieu of employees.
3. Applicable field office expenses for rent and utilities that are substantiated by invoices. Compensation for on-site plant, incidentals, and facilities for non-field office personnel including branch office and home office personnel will not be provided. Compensation for these items and other incidentals is included in the Section 9-10.03, “Markup for Compensable Excusable Delays”, of these General Provisions.
9-10.03 Markup for Compensable Excusable Delays
Except for compensable excusable delays associated with archeological and cultural resources as described in Section 10-12, “Archeological and Cultural Resources”, of these General Provisions and right-of-way delays, fifteen percent (15%) shall be added to job-site indirect costs for onsite plant, incidentals, overhead, home and branch office costs, bonds and profit. The Contractor shall determine the distribution of the markup among the Contractor, Subcontractors, and suppliers.
9-10.04 Duplicated Overhead Costs
If the Contractor is compensated for delays in accordance with this Chapter, and the delay is attributable to direct cost changes to which markups were added, equitable adjustments shall be made to eliminate the duplication of compensation for indirect and overhead costs and profit.
9-11 LIMITATIONS ON PAYMENTS FOR CHANGED WORK
The City will not pay the Contractor for costs in excess of prevailing market values, unless the Contractor can establish, to the satisfaction of the City, that the Contractor has investigated all possible means of providing the work and that the excess costs could not be avoided. The City will be the sole judge of the necessity of incurring costs in excess of market value and whether the excess costs are directly required for performance of changed work. The City’s determination will be final.
9-12 TIME EXTENSIONS FOR CHANGES
The Contractor is entitled to adjustment in Contract Time only if completion of the entire Work or of any milestone outlined in the Special Provisions is extended due to changes impacting the controlling item of work. Each proposal submitted by the Contractor in accordance with Section 9-5, “Prosecution of Changes to the Contract”, of these General Provisions, shall state the amount of extra time the Contractor believes the change added to the overall project schedule. Failure to request a time extension within the time allowed constitutes a waiver of the Contractor’s right to subsequently claim an adjustment in Contract Time.
9-13 EFFECT ON SURETIES OF CHANGES TO THE WORK
No alterations, time extensions, extra or additional work or other changes authorized by these conditions or any part of the Contract shall affect the sureties’ obligations under the 540
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Contract.
9-14 CONTRACT CHANGE ORDER
The City will issue a Change Order if a change to the Total Contract Price or Contract Time is necessary. The Contractor shall not be entitled to any adjustments in either Total Contract Price or Contract Time for changes performed before receipt of a written directive requiring the changes or Change Order approved by the City. Adjustments in Contract Time or Total Contract Price for changes performed will not be made until a Change Order is approved by the City. A Change Order is generally comprised of one or more Field Directives or other written orders or directives, and contains a summary of each change and changes to the Total Contract Price and Contract Time.
9-15 ACCEPTANCE OF ORDERS FOR CHANGES
A Change Order that is substantially in agreement with the Contractor’s Proposed Change Order, and/or the Contractor’s written agreement of a Change Order, Field Directive or other written directive, will constitute the Contractor’s final and binding agreement to the provisions of the Change Order, Field Directive, or other written directive, and a waiver of all claims in connection therewith, whether direct or consequential in nature, including those of any Subcontractors or suppliers. If the Contractor disagrees with any Change Order, Field Directive, or other written directive, the Contractor may submit a notice of potential claim to the City in accordance with Section 9-17, “Notice of Potential Claim”, of these General Provisions. Disagreement with the provisions of a Change Order, Field Directive, or other written order will not relieve the Contractor of the Contractor’s obligations under the Contract.
9-16 DISPUTE REGARDING CONTRACT REQUIREMENTS
If the Contractor and City fail to agree whether or not any work or other matter is within the scope of the Contract, the Contractor shall nevertheless immediately perform such work upon receipt of a written Field Directive or other written order. If Contractor disagrees with a decision by the City that any work is within the scope of the Contract, then the Contractor must follow the claims procedures in the Contract, including but not limited to Sections 7-13, 8-11, 9-17 and 9-18 of these General Provisions.
The Contractor shall not stop performing the Work pending resolution of a dispute, unless so ordered in writing by the City.
9-17 NOTICE OF POTENTIAL CLAIM
The Contractor shall not be entitled to payment of any additional compensation (whether money or time) for any cause, including any disagreement, protest, or change, any act or failure to act by the City, or the happening of any event, thing or occurrence, unless the Contractor has given the City due advance written notice of potential claim as hereinafter specified. The written Notice of Potential Claim shall set forth the reasons for which the Contractor believes additional monetary compensation and/or time will or may be due, the nature of the costs and/or time involved, and, insofar as possible, the amount of the potential claim.
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The Contractor shall promptly provide a written Notice of Potential Claim to the City upon discovery of concealed or unknown conditions or upon any disagreement, protest, situation, event, or occurrence that may result in a claim, including but not limited to changes in work and delays. The Notice shall be submitted no more than five (5) Working Days after the discovery or occurrence of any event that may be the basis for a claim for additional compensation or additional time.
Failure to timely submit the Notice waives any Claim that Contractor may otherwise have had the right to submit based on the underlying occurrence or event.
9-18 SUBMISSION OF CLAIMS
Claims shall be subject to the requirements of Public Contract Code secti ons 20104 et seq. and 9204. A summary of those provisions is set forth below. A waiver of the rights granted by the referenced statutes is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addi tion to the statutory requirements, so long as the contractual provisions do not conflict with or otherwise impair the statutory timeframes and procedures.
To the extent that the summary below is inconsistent with any requirement of those statutes, the statutes shall control. The terms below are intended to be consistent with the governing statutes, and any modifications shall be understood as lawful modifications or additions to the statutory requirements if at all possible.
9-18.01 Definitions
“Claim” means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) a time extension, including, without limitation, for relief from damages or penalties for delay asse ssed by a public entity under a contract for a public works project.
(B) payment by the public entity of money or damages arising from work done by, or on behalf of, Contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled.
(C) payment of an amount that is disputed by the City.
“Mediation” means any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation.
“Public works contract” or “public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.
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“Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with the Contractor or is a lower tier subcontractor.
9-18.02 Claims Procedure.
All Claims under this Contract shall be resolved using the following procedure.
9-18.02.01 The Claim shall be in writing and include the documents necessary to substantiate the Claim as set forth in Section 9- 18.03. Unless a different time is stated in the Contract Documents, Claims must be filed not later than thirty (30) Calendar Days after the proposed final payment request is returned to the Contractor by the City. Any Claim shall be certified under penalty of perjury and in compliance with the California False Claims Act, as set forth in Section 9 -18.03 below.
Failure to include these required certifications will constitute grounds for immediate rejection of the Claim and shall be deemed a waiver and absolute bar of the Claim, including any right to pursue the Claim further.
9-18.02.02 If a Subcontractor, including a lower tier Subcontractor, lacks legal standing to assert a Claim against the City because privity of contract does not exist, then the Contractor may present a Claim on behalf of such a Subcontractor. A first-tier Subcontractor may request in writing, either on its own behalf or on behalf of a lower tier Subcontractor, that the Contractor present a Claim on behalf of the Subcontractor for work that was performed by the Subcontractor. The Subcontractor requesting that the C laim be presented shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the Subcontractor in writing as to whether the Contractor presented the Claim and, if the Contractor did not present the Claim, provide the Subcontractor with a statement of the reasons for not having done so.
9-18.02.03 Upon receipt of a Claim, the City shall conduct a reasonable review of the Claim. Within 30 days of receipt of the Claim, the City may request, in writing, any additional documentation supporting the Claim or relating to defenses to the Clai m that the City may have against the claimant. Where additional information is requested by the City , the time in which the City must respond to a Claim shall be tolled until all requested information is provided. If additional information is thereafter r equired, then it shall be requested and provided upon mutual agreement of the City and the Contractor.
9-18.02.04 Within 45 days of receipt of the Claim, as that time may be tolled as provided in Section 9 -18.02.03 above, the City shall provide the Contractor with a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and the Contractor may, by mutual agreement, extend the time period for a response. Failure by the City to respond to a Claim within the time periods described herein shall result in the Claim 543
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being deemed rejected in its entirety. A Claim that is denied by failure of the City to respond shall not constitute an adverse finding with regard to the merits of the Cl aim or the responsibility or qualifications of the claimant.
9-18.02.05 Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. The City shall not fail to pay money as to any portion of a Claim which is undisputed except as otherwise provided in the Contract Documents.
9-18.02.06 If the claimant disputes the City ’s written response, or the City fails to respond within the time prescribed, the Contractor may so notify the City, in writing, either within 15 days of receipt of the City’s response or within 15 days of the City’s failure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in di spute. Upon receipt of a demand, sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute.
9-18.02.07 Within 10 business days following the conc lusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, then the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undis puted. Failure by the City to provide the written statement within the time periods described herein shall result in the remaining Claim issues being deemed rejected in their entirety. Denial by failure of the City to respond shall not constitute an adve rse finding with regard to the merits of the remaining Claim issues or the responsibility or qualifications of the claimant. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the District issues its written statement.
9-18.02.08 Any remaining disputed portion of the Claim following the meet and confer conference shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and the Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this Section shall excuse any further obligation under Public Contract Code Section 20104.4 to mediate after litigation has been commenced. This Section does not preclude arbitration if mediation under this Section does not resolve the parties’ dispute.
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9-18.02.09 If mediation is unsuccessful, then the Contractor may file a claim as provided in Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code with respect to the parts of the Claim remaining in dispute. For purposes of those provisions, the running of the period of time within which a C laim must be filed shall be tolled from the time the Contractor submits his or her written Claim pursuant to Section 9 -
18.02.01 until the time that mediation of disputed portions of that Claim is completed. This Section does not apply to tort claims, and nothing in this Section is intended nor shall be construed to change the time periods for filing tort claims or actions specified by Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code.
9-18.02.10 Amounts not paid in a timely manner as required by this Section shall bear interest at seven percent (7%) per year.
9-18.02.11 Claims of $375,000 or less are subject to the following procedures for civil actions filed to resolve the claims:
(a) The case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1141.11 of that code. The Civil Discovery Act (Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure) shall apply to any such proceeding, consistent with the rules pertaining to judicial arbitration.
(b) The parties stipulate that the arbitrator shall be experienced in construction law and shall be paid necessary and reasonable hourly r ates of pay not to exceed their customary rate, and such fees and expenses shall be paid equally by the parties, except in the case of arbitration where the arbitrator, for good cause, determines a different division. In no event shall these fees or expenses be paid by state or county funds.
(c) In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, any party who, after receiving an arbitration award, requests a trial de novo but does not obtain a mor e favorable judgment shall, in addition to payment of costs and fees under that chapter, pay the attorneys’ fees of the other party arising out of trial de novo.
(d) The court may, upon request by any party, order any witnesses to participate in arbitration process.
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In any suit filed under Public Contract Code Section 20104.4, the City shall pay interest at the legal rate on any arbitration award or judgment. The interest shall begin to accrue on the date the suit is filed in a court of law.
9-18.03 Documentation of Claims by Contractor
For each Claim, the Contractor shall furnish claim documentation as herein specified.
Contractor shall submit three (3) certified copies of all claim documentation. All claim documentation shall be complete when submitted. The evaluation of the Contractor's claim will be based on City's records and the claim documentation submitted by Contractor.
Claim documentation shall conform to generally accepted auditing standards and shall be in the following format:
1. Introduction and background
2. Issues
a. Index of issues
b. For each issue:
• Background
• Chronology
• Contractor's position (reason for City’s potential liability)
• Supporting documentation of merit
• Supporting documentation of damages
3. CPM schedules, as-planned versus as-built, and delay analysis
4. Productivity and damages exhibits
5. Summary of issues and damages
Supporting documentation of merit for each issue shall be cited by reference, photocopies, or explained. Supporting documentation may include, but not be limited to, General Provisions, Technical and other Specifications, Drawings, correspondence, conference notes, shop drawing logs, survey books, inspection reports, delivery schedules, test reports, daily reports, subcontracts, fragmentary CPM schedules, photographs, technical reports, RFIs, Field Directives, and other related records.
Supporting documentation of damages for each issue shall be cited, photocopied, or explained. Supporting documentation may include, but not be limited to, certified detailed labor, materials, equipment, and construction equipment and services costs; purchase orders; invoices; project as-planned and as-built costs; Subcontractor payment releases; 546
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quantity reports; other related records; general ledger and any other accounting materials.
Each submission of Claim documentation shall include the following certification, signed in the same manner as the Contract was signed:
Claim Declaration
I, [name of declarant], declare the following:
[Contractor company name] has contracted with the City of Rocklin for the [name of project] project. I am authorized by my employer ( [contractor company name] ) to prepare the attached claim for compensation (in other words, for money and/or time extensions) to the City of Rocklin regarding this project (dat ed _________, 20_, and requesting $_________ and/or ___ additional working days), and I did prepare said attached claim. I am the most knowledgeable person at [contractor company name] regarding this claim.
I am aware of all law that relates to this clai m, including but not limited to California Penal Code section 72, Government Code sections 12650 et seq. (False Claims Act), and Business and Professions Code sections 17200 et seq. (Unfair Business Practices Act). I am aware that submission or certification of false claims, or other claims that violate law or the contract, may lead to fines, imprisonment, and/or other severe legal consequences for myself and/or [contractor company name].
The attached claim is prepared and submitted in good faith, does not breach the contract between [contractor company name] and the City of Rocklin for this project, does not violate any law, satisfies all provisions of the contract, only contains truthful and accurate supporting data, and only requests an amount that accurately reflects the adjustments to money and time for which I honestly and in good faith believe that the City of Rocklin is responsible under its contract with [contractor company name].
So that I could declare that the statements in this declaration and the attached claim were true and correct, while preparing this declaration and claim I consulted with others (for example, attorneys, consultants, or others who work for [contractor company name]) when necessary to assure myself that said statements were true and correct.
I declare under the penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed _________, 20__, at ___________, California.
____________________
[name of declarant]
If the Contractor is unable to support any part of a claim and it is determined that such inability is attributable to falsity of such certification or misrepresentation of fact or fraud by the Contractor, the Contractor shall be liable to the City for three (3) times the amount of damages which the City sustains, plus the cost of civil action, and may be liable to the City for a civil penalty of up to ten thousand dollars ($10,000) for each false claim.
9-19 ENGINEER’S DECISION
The Engineer will review the facts of any disputed Claim and may request additional information, evidence, or testimony in accordance with Section 9-18. The Engineer will render a fair, impartial decision based on the Contract, and the evidence submitted by the City and Contractor representatives.
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9-20 ALTERNATIVE DISPUTE RESOLUTION
After all remedies and provisions of the Contract are exhausted, any dispute related to the Work or Contract may be resolved by mediation or arbitration if agreed upon by the parties involved and the City and the Contractor amend the Contract to agree on a form of alternative dispute resolution.
9-21 NO ALTERNATIVE CLAIMS PROCEDURE
Nothing in the Contract constitutes an agreement for an alternative claim procedure under the provisions of Government Code Section 930.2, nor relieves the Contractor of the requirements of Government Code, Part 3, Chapters 1 and 2 and Title 1, Division 3.6, Chapters 1, 2, 3, and 4, or Public Contract Code Section 20104.2(e).
9-22 ASSIGNMENT OF CLAIMS
The Contractor shall not assign any portion of the moneys due the Contractor without written City approval. No person other than the party signing the Contract has any claim under the Contract, except as provided in the Contract.
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CHAPTER 10 - ENVIRONMENTAL CONTROLS AT WORK SITE
TABLE OF CONTENTS
Section Page
10-1 DUST CONTROL ...................................................................................................... 128 10-1.01 General ................................................................................................... 128 10-1.02 Dust Palliative ......................................................................................... 128 10-1.03 Measurement and Payment ...................................................................... 128 10-2 AIR POLLUTION CONTROL ..................................................................................... 128 10-3 BURNING.................................................................................................................. 128 10-4 EROSION, SEDIMENT, AND WATER POLLUTION CONTROL ............................... 128 10-4.01 General ................................................................................................... 128 10-4.02 City Requirements ................................................................................... 129 10-4.03 Regulations, Ordinances, Permits, and Specifications ................................. 129 10-4.04 Storm Water Pollution Prevention Plan ...................................................... 130 10-4.05 Erosion and Sediment Control Plan ........................................................... 130 10-4.06 Minimum City Requirements – Best Management Practices for Construction Activities. ................................................................................................ 130 10-4.07 Compliance ............................................................................................. 131 10-4.08 Payment ................................................................................................. 131 10-5 CONTROL OF WATER IN THE WORK .................................................................... 132 10-6 NOISE CONTROL ..................................................................................................... 132 10-7 CONTAMINATED AND HAZARDOUS MATERIALS OR ENVIRONMENTS ............. 132 10-7.01 Contaminated or Hazardous Materials ....................................................... 132 10-7.02 Hazardous Environments ......................................................................... 132 10-8 USE OF EXPLOSIVES .............................................................................................. 132 10-9 SANITARY REGULATIONS ...................................................................................... 133 10-10 CONFINED SPACES .............................................................................................. 133 10-10.01 Contractor Responsibilities and Qualifications ........................................... 133 10-10.02 City Responsibilities for Permit Confined Spaces ...................................... 133 10-10.03 Existing Sewers and Storm Drains ........................................................... 133 10-10.04 Joint City – Contractor Entries ................................................................. 134 10-11 CLEANING UP ........................................................................................................ 134 10-12 ARCHEOLOGICAL AND CULTURAL RESOURCES .............................................. 134 10-13 PROTECTION OF EXISTING TREES ..................................................................... 134
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CHAPTER 10 ENVIRONMENTAL CONTROLS AT WORK SITE
10-1 DUST CONTROL
10-1.01 General
Dust control is a year-round requirement. Dust control shall consist of applying water and/or soil binder/dust palliative to alleviate or prevent fugitive and nuisance dust resulting from the Contractor's operations, either within or outside the Work right-of-way. Dust control shall be performed by the Contractor at any time dust, resulting from the Contractor’s operations, becomes a fugitive or a nuisance or visual impediment, or as directed by the City. Failure to adequately control dust will be cause for the City to direct the Contractor to suspend operations or for the City to perform such activity with all costs to be borne by the Contractor.
The application of water for dust control may be performed by the Contractor for the Contractor’s convenience.
10-1.02 Dust Palliative
Dust palliative shall be applied when deemed necessary by the City. Dust palliative may be used for dust control on disturbed soil areas, haul roads and staging areas. Dust palliatives are to be submitted to the City for approval prior to use and applied per manufacturer’s recommendation. Costs for dust palliatives will be born solely by Contractor.
10-1.03 Measurement and Payment
Full compensation for applying water and/or dust palliatives for dust control is included in the prices paid for the various items of work involved and no additional compensation will be paid.
10-2 AIR POLLUTION CONTROL
The Contractor shall comply with all Federal, State, City, regional air district (Placer County Air Pollution Control District), and local air pollution control rules, regulations, ordinances, and statutes that apply to the Work. The Contractor shall also comply with the requirements of any permits issued to the City as noted in the Special Provisions.
10-3 BURNING
Unless otherwise provided in the Special Provisions or approved by the City in writing, material shall not be burned on site.
10-4 EROSION, SEDIMENT, AND WATER POLLUTION CONTROL
10-4.01 General
The Federal Clean Water Act requires construction sites to prevent pollutants entering storm drain systems. Storm drain systems include both constructed and natural facilities, including streams, waterways, and other bodies of water. The Contractor shall protect the local storm drain system from pollution, and shall conduct and schedule operations to avoid erosion and sediments. Where erosion may cause water pollution due to the nature of the material or the season, the Contractor's operations shall be scheduled so temporary or permanent erosion 550
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control features are installed concurrently with, or immediately following, grading operations.
The Contractor is responsible for organizing and scheduling the Work to prevent, control, and/or abate water pollution. In order to provide effective and continuous control of water pollution, it may be necessary for the Contractor to perform the Work in small or multiple units, on an out-of-phase schedule, and/or with modified construction procedures. The Contractor shall coordinate water pollution control work with all other Contract work.
10-4.02 City Requirements
Unless specified otherwise in the Contract, all construction projects in the City of Rocklin must have a water pollution control program as follows:
• Construction projects disturbing more than the threshold number of acres as defined in the State General Construction Permit [currently one (1) acre] must have a Storm Water Pollution Prevention Plan (SWPPP). (See Section 10-4.04 below.) • Construction involving the grading, filling, excavating, storage, or disposal of fifty (50) cubic yards or more of soil, or the clearing or grubbing of one (1) acre or more must have an Erosion and Sediment Control Plan (ESCP). (See Section 10-4.05 below.) • All other construction must comply with the City of Rocklin Municipal Code. (See Section 10-4.06 below.)
Before starting the Work, the Contractor shall develop a program for the control of water pollution during the Work. The program shall indicate how the Contractor proposes to effectively control water pollution and provide drainage during the Work. The program shall also describe how the Contractor plans to monitor the effectiveness of the program. The program shall show erosion control work and all water pollution control measures the Contractor plans to implement in connection with the Work. The Contractor shall not perform any clearing, grubbing or earthwork on the project, other than that specifically authorized in writing by the City, without a water pollution control program. When requested by the City, the Contractor shall submit the program for review.
The City is not liable to the Contractor for any portion of the water pollution control program or subsequent revisions nor for any delays to the Work due to the Contractor’s failure to prepare and implement a program nor for any delays as a result of City review.
10-4.03 Regulations, Ordinances, Permits, and Specifications
The Contractor is responsible for compliance with all Federal, State, City and local permits, rules, regulations, ordinances, statutes, and City directions that apply to erosion, sediment, and water pollution control. The Contractor, at a minimum, shall comply with the most stringent regulation, ordinance, permit, or specification of the following applicable to the Work:
• This Chapter or the Special Provisions
• Chapter 8.30 of Title 15 of the City Municipal Code
• Chapter 15.28 of Title 15 of the City Municipal Code
• State of California Construction Activities Storm Water General Permit • Specific or general National Pollution Discharge Elimination System (NPDES) or other permits that cover the Work or are specific to the area of the Work • The City of Rocklin Joint Municipal NPDES Permit
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The Contractor’s responsibility to provide water pollution control under this Chapter ends at Field Acceptance of the Work. (See Section 7-21 above.)
10-4.04 Storm Water Pollution Prevention Plan
For construction projects disturbing more than one (1) acre, the Contractor must obtain coverage under the State Water Resources Control Board (SWRCB) General Storm Water Permit to Discharge Storm Water Associated with Construction Activity (General Permit).
General Permit coverage is obtained by certifying and filing a Notice of Intent (NOI) with the Regional Board. The Contractor will prepare and the City will file the NOI unless specified otherwise in the Special Provisions.
Additionally, unless specified otherwise in the Special Provisions, the Contractor shall prepare a SWPPP in accordance with the General Permit or other permit specified in the Special Provisions. The SWPPP shall be prepared by an individual qualified and certified about storm water pollution prevention methods and requirements, and shall be signed by the preparer of the SWPPP. The SWPPP shall be implemented by the Contractor before Work commences.
The Contractor may not be allowed to mobilize until the plan is accepted. The SWPPP shall be kept onsite at all times, updated for the various phases of the project, and made immediately available for City and Regional Board Inspectors upon request. Updates shall be submitted to the City immediately for review. At a minimum, the SWPPP shall include all elements as specified in the State’s order.
10-4.05 Erosion and Sediment Control Plan
Construction projects involving the grading, filling, excavating, storage, or disposal of fifty (50) cubic yards or more of soil, or the clearing or grubbing of one (1) acre or more, are required to comply with the provisions of Chapters 15.28 of Title 15 of the City Municipal Code.
The Erosion and Sediment Control Plan (ESCP) shall be prepared by a qualified and certified practitioner. When requested by the City, the ESCP shall be reviewed by the City before work commences. Unless otherwise approved by the City, the Contractor will not be allowed to mobilize until the plan is prepared. If the Contractor’s methods fail to prevent erosion or siltation, the Contractor shall revise and adjust the control measures to provide effective control, and shall be responsible for any damage, fine, and/or administrative civil liabilities resulting from erosion or siltation originating on the Work site and any other site the Contractor controls or passes through.
10-4.06 Minimum City Requirements – Best Management Practices for Construction Activities.
All construction contractors performing work in the City shall conform to adopted City standards.
In addition to any adopted BMPS or other requirements for construction projects adopted by the City, the following requirements shall apply to all projects undergoing construction in the City.
The requirements set forth below shall apply.
1. Sediment, construction waste and other pollutants from construction sites and parking areas, including runoff from equipment at construction sites, shall be retained on the site to the maximum extent practicable.
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2. Any sediment or other materials that are not retained on the site shall be removed the same day as the projects are completed. Where determined as necessary by the director, a temporary sediment barrier shall be installed.
3. Plastic covering may be utilized to prevent erosion of an otherwise unprotected area, along with runoff devices to intercept and safely convey the runoff.
4. Excavated soil or stockpiled base materials shall be located on the site in a manner that minimizes the amount of sediments running into the street or adjoining properties. Soil and materials piles shall be covered until the soil is either used or removed. Soil and materials shall not be placed on paved streets or sidewalks without specific permission of the City.
5. No washing of construction or other industrial vehicles shall be allowed on a construction site or property adjacent to a construction site.
6. Drainage controls shall be utilized as needed, depending on the extent of the proposed grading and topography of the site, including but not limited to the following: detention ponds, sediment ponds, infiltration pits, dikes, filter berms, ditches, down drains, chutes, or flumes.
Notification to the Project Manager shall be required within twenty-four (24) hours following the failure of authorized measures to prevent erosion or sediment from leaving the construction site, the deposit of debris or material on adjoining property or public rights -of-ways, or the interference with any existing watercourses or drainage facilities.
10-4.07 Compliance
Compliance with the provisions in this Chapter does not relieve the Contractor of the responsibility for compliance with other Contract provisions.
The Contractor shall perform routine inspection and maintenance of BMP’s. Inspections shall be done prior to, during, and after each rain event. The Contractor is solely responsible for preparing and maintaining inspection and monitoring records; and for including those records in the SWPPP or, in the case of Erosion and Sediment Control Plans, the site or project Maintenance Log, copies of which shall be available to the City for review upon request.
The Contractor shall immediately correct or replace any ineffective BMP. If the measures taken by the Contractor are inadequate to effectively control water pollution, the City may direct the Contractor to revise the operations and water pollution control program. The City may restrict work from being performed until the water pollution control measures are adequate and, if required, a revised water pollution control program is in place. Continued noncompliance may result in the City suspending the Work in accordance with Section 5-21, above. The City reserves the right to take corrective action and withhold City costs for corrective action from progress payments or final payment in accordance with Section 8-8, above.
Any fines, including third-party claims, levied against the City as a result of Contractor's non- compliance are the Contractor's sole responsibility and will be withheld from progress payments or final payment in accordance with Section 8-8, of the General Provisions.
10-4.08 Payment
Except as otherwise provided in the Special Provisions, full compensation for compliance with all applicable erosion and sediment control and storm water pollution and prevention requirements will be included in the prices paid for the various Contract items of work and no 553
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additional compensation will be allowed.
10-5 CONTROL OF WATER IN THE WORK
When groundwater or surface run-off water is encountered, the Contractor shall furnish, install, maintain, and operate all necessary machinery, appliances, and equipment to keep excavations and wet areas reasonably free from water. De-watering operations shall remain in effect until the Work has been completed, inspected, and approved, and all danger of flotation and other damage is eliminated. Water pumped from waterways, trenches, excavations, or low spots shall be disposed as specified in the Special Provisions or as directed by the City.
The Contractor is not allowed to dispose of any water that contains sediment or other contaminants. The Contractor is responsible for providing filtration, settlement, or disposal facilities as required to comply with the requirements of Section 10-4, above.
10-6 NOISE CONTROL
The Contractor shall comply with all local noise control and noise level rules, regulations, and ordinances that apply to the Work. The Special Provisions may contain specific or additional requirements. Internal combustion engines used for any purpose on the Work must be equipped with a muffler recommended by the manufacturer.
10-7 CONTAMINATED AND HAZARDOUS MATERIALS OR ENVIRONMENTS
10-7.01 Contaminated or Hazardous Materials
The Contractor shall comply with all Federal, State and local rules, regulations, ordinances, and statutes that apply to the handling, storage, and disposal of contaminated and hazardous materials. All work involving material containing asbestos must be performed in accordance with California Labor Code, Sections 6501.5 through 6510 and California Code of Regulations, Title 8, Section 5208 and any other pertinent regulations.
10-7.02 Hazardous Environments
Existing sewers and appurtenances exposed to sewage and industrial wastes are considered contaminated with disease-causing organisms. The Contractor shall advise all personnel (including Subcontractor personnel) in contact with contaminated facilities, debris, wastewater, or similar items of the necessary precautions to avoid disease. It is the Contractor's responsibility to urge all personnel to observe a strict regimen of proper hygienic precautions, including any inoculations recommended by the local public health officer.
10-8 USE OF EXPLOSIVES
The Contractor shall not use explosives on the Work unless the City grants permission in writing or the use of explosives is specified in the Contract Documents, and then only under such conditions as the City prescribes.
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10-9 SANITARY REGULATIONS
The Contractor shall comply with all Federal, State and local rules, regulations, ordinances, and statutes with respect to sanitation. The Contractor shall obey and enforce such sanitary requirements, and shall take precautions against contagious or infectious diseases. Sanitary conveniences for the use of the workers shall be constructed or installed and maintained by the Contractor. The Contractor shall strictly enforce use of such facilities.
10-10 CONFINED SPACES
10-10.01 Contractor Responsibilities and Qualifications
When working in a confined space, the Contractor shall comply with all confined space requirements of Title 8, General Industry Safety Orders (Cal-OSHA), Article 108, Sections 5156 through 5159.
Prior to any confined space entry, the Contractor shall submit for City review a copy of the entry permit and associated documentation. The Contractor's submittal shall be made thirty (30) days prior to any confined space entry in accordance with Section 5-8, above. The Contractor will not be allowed to make a permit-required confined space entry until the City has reviewed the Contractor’s qualifications and proposed methods.
The Contractor shall conform to the procedures established by the Contractor’s submittal during all confined space operations. Contractor shall provide all monitoring and safety equipment necessary to perform pre-entry checks of confined spaces. The Contractor shall also provide all monitoring, safety, and communications equipment required for confined space operations.
10-10.02 City Responsibilities for Permit Confined Spaces
The Contractor shall be provided with information regarding known hazards and known or potential permit spaces. After the City has reviewed the Contractor’s submittal to perform permit-required confined space entry work, the Contractor will be provided with the following:
• Notification of the location, physical characteristics, known hazards, etc. regarding the permit-required confined space the Contractor anticipates entering. • Information regarding safety items (e.g. nearby emergency equipment), precautions, procedures, safeguards, etc. installed or implemented and that may be available to the Contractor's employees in or near the permit-required confined space.
The City’s failure to identify a confined space does not relieve the Contractor of the responsibility for compliance with the requirements of Article 108 (Cal-OSHA) and this Chapter.
10-10.03 Existing Sewers and Storm Drains
Because of the potential danger of solvents, gasoline, and other hazardous material in existing sewers and storm drain pipes, these areas shall be treated as permit-required confined spaces unless it has been proven, through appropriate testing, that no hazards exist or are expected to develop.
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10-10.04 Joint City – Contractor Entries
Unless otherwise directed in writing by the City, when City employees work alongside the Contractor in a permit-required confined space, the permit procedures for both the City and the Contractor shall be used. The Entry Supervisor shall coordinate the requirements of both permit procedures prior to entry.
10-11 CLEANING UP
The Contractor shall keep the site in a neat and presentable condition. The Contractor shall dispose of surplus materials, clean out all drainage ditches and structures, and repair any fences or other property damaged during the progress of the Work. When material is disposed of outside of an easement, street, or highway right-of-way, or other City-owned properties, the Contractor shall do so in accordance with the Contract Documents.
10-12 ARCHEOLOGICAL AND CULTURAL RESOURCES
If archeological or cultural resources are discovered during the Work, the Contractor shall cease all construction operations in the vicinity of the discovery until a qualified archeologist can assess the value of these resources and make recommendations to the State Historic Preservation Officer. Archeological and cultural resources include artifacts, large amounts of bone, shell, or flaked stone, and other evidence of human activity. If the State Historic Preservation Officer or the City directs that work be temporarily ceased at the location of an archeological or cultural find, the Contractor shall temporarily suspend work at the location.
If the City or the State Historic Preservation Officer temporarily suspends a portion of the Work for cultural purposes, any associated delays are considered excusable in accordance with Section 7-12.02, “Excusable Delays”, above.
10-13 PROTECTION OF EXISTING TREES
Special attention shall be given to protection of certain native and ornamental trees or shrubs, landmark trees, and all native oak trees. Additional requirements for specific trees may be shown on the Plans, or designated in the Special Provisions or by the City. No native oak trees shall be removed or disturbed unless specifically designated for removal on the Plans or by the City. Every reasonable effort shall be made to avoid creating conditions adverse to the tree’s health. The natural ground three (3) fee outside of the drip line of protected trees shall remain as undisturbed as possible. All protected trees within the Work area that require pruning for construction clearance shall be pruned prior to commencement of construction.
Native oak trees that require pruning of branches larger than two inches (2”) in diameter shall be pruned by a Certified Arborist.
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CHAPTER 11 – PRECONSTRUCTION PHOTOGRAPHS AND RECORD DRAWINGS
TABLE OF CONTENTS
Section Page
11-1 GENERAL ................................................................................................................ 136 11-2 PRECONSTRUCTION PHOTOGRAPHS ................................................................. 136 11-3 RECORD DRAWINGS ............................................................................................. 136 11-4 MEASUREMENT AND PAYMENT ........................................................................... 137
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CHAPTER 11 PRECONSTRUCTION PHOTOGRAPHS AND RECORD DRAWINGS
11-1 GENERAL
Preconstruction photographs will only be required when specified in the Special Provisions.
Record Drawings are required on all City Work, unless directed otherwise in writing by the City.
11-2 PRECONSTRUCTION PHOTOGRAPHS
Preconstruction digital photographs shall be taken by the Contractor at one-hundred foot (100’) intervals along the route of the Work before any construction begins. The view in each photograph shall show the date; and include name of the Project, lateral or street, and applicable station designation in the form of a sign or legend in the record book. The views in preconstruction photographs shall include the entire construction zone and, in particular, show the interface between the right-of-way and construction zone, and abutting property features such as, but not limited to, condition of existing streets, sidewalks, driveways, fences, landscaping, buildings abutting work site, and existing surface utility facilities on and close to the Work. All essential features of the project area shall be shown accurately. The City may order additional photographs showing additional features or orientations, if the City determines that all essential features are not accurately or adequately shown.
11-3 RECORD DRAWINGS
The Contractor shall maintain a neat and accurately marked set of Record Drawings (as- builts), which shall be provided to the City for review and approval prior to final acceptance of the Work. The Record Drawings shall represent the Work as constructed and document changes to the Work shown on the Project Plans, and shall show the actual as-constructed conditions of installed or modified systems, equipment, and material.
Record Drawings shall be produced by marking a full size copy of the Project Plans as follows:
Red - Additions including notes and dimensions.
Green - Deletions (by hash marks or appropriate lines through the deletion.) Graphite (gray) - General comments and notes used by Contractor or City and not required on the as-built.
Yellow – Work completed as shown and used by the City in field review of the as-built, during the submittal phase.
Blue – City verification and notes required to be added and noted by the City in review of the as-built, during submittal phase.
The Record Drawings shall show, by field measured dimensions, the exact locations of all underground work, including all sprinkler system piping and components, and the final elevations and locations of all improvements constructed, modified or adjusted. Record Drawings shall be available for inspection by the City at all times and shall be updated at least weekly with all changes pertinent to Field Directives, other written directives, RFI responses, and Change Orders shown thereon. Progress payments or portions thereof may be withheld if Record Drawings are not kept up to date.
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Unless otherwise specified in the Special Provisions, the Contractor shall submit two (2) sets of Record Drawings to the City at the final inspection for review. Upon approval, the Contractor shall submit one paper set and electronic versions (AutoCAD, PDF, or TIF) on CD or flash drive. These Record Drawings shall include certification by the Contractor that the Record Drawings are a true representation of the Work as actually constructed. The Work will not be formally accepted until the Record Drawings are provided to and approved by the City. Final payment or a portion thereof may be withheld if final Record Drawings are not provided.
11-4 MEASUREMENT AND PAYMENT
When the Contract includes a separate item for preconstruction photographs, preconstruction photographs will be paid for at a lump sum price. The lump sum price paid for preconstruction photographs includes full compensation for furnishing all labor, materials, tools, equipment, and incidentals and for doing all the work involved in taking and submitting preconstruction photographs, or optional video tape, as specified in these Specifications and the Special Provisions, and as directed by the City. When the Contract does not include a payment item for preconstruction photographs, full compensation for preconstruction photographs is included in the prices paid for the various items of work and no separate payment will be made.
Full compensation for Record Drawings is included in the prices paid for the various items of work and no separate payment will be made.
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 1
FOR THE
WHITNEY COMMUNITY PARK PUMP TRACK PROJECT
The Special Provisions contained herein have been prepared by or under the direction of the following Registered Engineer.
CIVIL
HUNTER YOUNG
REGISTERED CIVIL ENGINEER
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TABLE OF CONTENTS
1.00 GENERAL ..........................................................................................................................................................4
1.01 LOCATION .........................................................................................................................................................4
1.02 DESCRIPTION OF PROJECT ...........................................................................................................................4
1.03 TIME OF COMPLETION ....................................................................................................................................4
1.04 LIQUIDATED DAMAGES ...................................................................................................................................4
1.05 COORDINATION ................................................................................................................................................4
1.06 ORDER OF WORK ............................................................................................................................................4
1.07 HOURS OF WORK ............................................................................................................................................5
1.08 DUST CONTROL ...............................................................................................................................................5
1.09 PUBLIC NOTIFICATION ....................................................................................................................................5
1.10 PUBLIC CONVENIENCE ...................................................................................................................................5
1.11 SUBMITTALS .....................................................................................................................................................6
1.12 AS-BUILT PLANS ...............................................................................................................................................6
1.13 PROJECT APPEARANCE .................................................................................................................................6
1.14 STAGING AREA .................................................................................................................................................7
1.15 PROPERTY AND FACILITY PRESERVATION .................................................................................................7
1.16 PRECONSTRUCTION PHOTOGRAPHS ..........................................................................................................7
1.17 MEASUREMENT AND PAYMENT.....................................................................................................................7
2.00 MOBILIZATION ..................................................................................................................................................8
2.01 MEASUREMENT AND PAYMENT.....................................................................................................................8
3.00 TRAFFIC CONTROL SYSTEM ..........................................................................................................................9
3.01 MATERIALS .......................................................................................................................................................9
3.02 EXECUTION .......................................................................................................................................................9
3.03 PUBLIC ACCESSIBILITY ................................................................................................................................ 10
3.04 MEASUREMENT AND PAYMENT.................................................................................................................. 12
4.00 CONSTRUCTION STAKING .......................................................................................................................... 13
4.01 MEASUREMENT AND PAYMENT.................................................................................................................. 13
5.00 WATER POLLUTION CONTROL PLAN (WPCP) .......................................................................................... 14
5.01 WPCP PREPARATION, APPROVAL, AND UPDATES .................................................................................. 14
5.02 WPCP IMPLEMENTATION AND MAINTENANCE ......................................................................................... 15
5.03 MEASUREMENT AND PAYMENT.................................................................................................................. 16
6.00 CLEARING AND GRUBBING ........................................................................................................................ 17
6.01 MEASUREMENT AND PAYMENT.................................................................................................................. 17
7.00 EARTHWORK ................................................................................................................................................. 18
7.01 MEASUREMENT AND PAYMENT.................................................................................................................. 18
8.00 AGGREGATE BASE ...................................................................................................................................... 19
8.01 DAILY SUBMITTAL ......................................................................................................................................... 19
8.02 MEASUREMENT AND PAYMENT.................................................................................................................. 19
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9.00 HOT MIX ASPHALT ........................................................................................................................................ 20
9.01 MATERIALS .................................................................................................................................................... 20
9.02 EXECUTION .................................................................................................................................................... 20
9.03 DAILY SUBMITTAL ......................................................................................................................................... 21
9.04 MEASUREMENT AND PAYMENT.................................................................................................................. 21
10.00 STORMWATER DRY WELLS ...................................................................................................................... 22
10.01 MEASUREMENT AND PAYMENT................................................................................................................ 22
11.00 PUMP TRACK ............................................................................................................................................... 23
11.01 MEASUREMENT AND PAYMENT................................................................................................................ 23 562
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1.00 GENERAL
All references to the State Standard Specifications means the 2023 State of California Standard Specifications issued by the California Department of Transportation.
1.01 LOCATION
The work under this contract is located at the following locations as shown on the plan sheets:
1. City-owned vacant space located within Whitney Community Park.
1.02 DESCRIPTION OF PROJECT
The work to be performed consists, in general, of clearing and grubbing; earthwork ; asphalt paving surfaces; dry wells, pump track, and all other work shown in the contract documents.
1.03 TIME OF COMPLETION
For the purpose of this contract, all work for the base project under this contract shall be complete within 50 WORKING DAYS beginning on the first effective working day as specified in the Notice to Proceed (NTP).
1.04 LIQUIDATED DAMAGES
For the purpose of this contract, Liquidated Damages shall be set at the amount of One Thousand Dollars ($1,000) per calendar day.
1.05 COORDINATION
The Contractor shall coordinate his activities in a manner that will provide the least interference with the City's operations, other contractors, and utility companies working in the area.
At a minimum, the Contractor shall coordinate his operations with the following:
• City of Rocklin Parks and Recreation
Contractor shall coordinate with Shawn Darling at the City of Rocklin (916) 625-5282, a minimum of ten (10) working days beforehand. As an alternative, the Contractor may coordinate with Tim O’Connor if Shawn is not available.
1.06 ORDER OF WORK
Order of work shall conform to the provisions in Section 5, " Control of Work," of the State Standard Specifications and these Special Provisions.
The following shall be performed prior to the Notice to Proceed:
1. Prepare and submit a work plan, progress schedule for all items of work and traffic and pedestrian control plans in a form provided by or acceptable to the Engineer. The work plan and schedule shall be updated weekly to reflect all items of work performed at the site and shall clearly indicate the proposed completed date. No work may begin under contract until the Pr ogress Schedule has been approved by the Engineer. Time required for review and approval of these items shall not constitute a basis for time extension.
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2. The prime contractor shall prepare and submit a City of Rocklin encroachment permit application to the Public Works Department located at 4081 Alvis Court. All fees for the encroachment permit will be waived.
3. Prepare and submit a Water Pollution Control Program (WPCP), as specified in these Special Provisions, in a form acceptable to the Engineer. Work shall not commence until the plan is reviewed and approved by the Engineer.
The above item(s) shall clearly disclose the Contractor’s proposed procedures and methods of operation, including identifying any special equipment intended for use on the project.
1.07 HOURS OF WORK
Hours of work shall be Monday to Friday 7 AM to 5 PM. Saturday work may be considered and approved by the City at no additional cost to the City.
1.08 DUST CONTROL
Dust control shall conform to the provisions in Section 10- 5, “Dust Control ,” of the State Standard Specifications.
The Contractor shall provide adequate levels of watering to control dust as well as street sweeping. At a minimum, the Contractor shall sweep the street once a week, or more often as directed by the Engineer/Inspector, to ensure dust is controlled, especially during gr inding operations. The Contractor shall furnish all water necessary for dust control.
The Contractor shall:
• enclose, cover, or water twice daily all soil piles;
• water exposed soil with adequate frequency for continued moist soil; • water all haul roads twice daily; and
• cover loads of all haul/dump trucks securely.
The project area is serviced by Placer County Water Agency (PCWA) . The Contractor shall coordinate with the water provider for a hydrant meter.
1.09 PUBLIC NOTIFICATION
The Contractor shall be required to notify, in writing, the public, utility companies, and any other persons or agencies affected by this project at least two (2) weeks prior to starting construction. City staff will coordinate with law enforcement and the fire department.
Failure to comply with the notification requirement will result in a stop work order. The Contractor shall maintain an updated and chronological record at the job site of all written notifications along with a list of recipients. Such records shall be made available upon request by the Engineer.
1.10 PUBLIC CONVENIENCE
The Contractor shall comply with Sections 7-1.03, “Public Convenience,” and 7-1.04, “Public Safety,” of the State Standard Specifications.
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1.11 SUBMITTALS
The Contractor shall comply with the submittal requirements as set forth in Section 5-1.23, “Submittals,” of the State Standard Specifications and these Special Provisions.
The Contractor shall submit via the City’s online platform (e.g., Virtual Project Manager) one electronic PDF of each material submittal to the Engineer at minimum ten (10) days prior to using said material.
Submittals will be reviewed and one (1) copy will be returned to the Contractor with conditions and/or approvals.
The Contractor shall review the Quality Assurance Program section of these Special Provisions for materials requiring certificates of compliance (COCs); submit COCs with material submittals.
See individual sections for submittal requirements included in, but not limited to the following sections:
1. Progress Schedule
2. Water Pollution Control Plan
3. Traffic Control and Pedestrian Access Plan
4. Mix Design for Materials to be Used
5. Certificates of Compliance
6. As-Built Plans
7. Any other items required by the City
1.12 AS-BUILT PLANS
Upon completion of the work, the Contractor shall furnish to the City a complete set of as-built plans showing all changes or deviations from the plans taking care to note the location of objects not installed at the location shown on the plans. Improvements will not be accepted by the City for permanent maintenance until the Contractor has submitted all as-built plans to the Engineer. The as-built plans shall conform to the following:
1. The plans must be stamped or otherwise noted “AS-BUILT,” be neat, clear, and readable.
2. As-built plans must contain the Contractor’s name, permanent address, date prepared, and signature.
3. Disclaimer statements of any kind that differ from the obligations and protections provided by Sections 6735 through 6735.6 of the California Business and Professions Code must not be included on the as-built plans.
1.13 PROJECT APPEARANCE
The Contractor shall maintain a neat appearance to the work. In areas visible to the public, the following shall apply:
A. When practicable, broken concrete and debris developed during construction activities shall be disposed of concurrently with its removal. Debris stockpiling is not allowed in the public right of way or on private property. If debris stockpiling is necessary, the Contractor is to stockpile at Contractor’s yard.
B. All streets, driveways, sidewalks, and haul routes within the project limits shall be kept clean and clear of debris, dirt and dust in a manner acceptable to the Engineer. The Contractor shall sweep works areas on a daily basis.
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 7 Failure to meet these requirements of this section may result in a “Stop Work” notice. The “Stop Work” notice will not be rescinded until the appearance of the work is acceptable to the Engineer.
At the end of each workday, all debris, branches, roots, removed fence, rubbish, and other debris in the work area shall be collected and placed in a suitable disposal bin or pile. Materials to be used later in construction shall be neatly stockpiled. All parts of the work shall be left in a neat and presentable condition at the end of the work shift.
1.14 STAGING AREA
With approval from the City, the Contractor may stage and store equipment and materials in the vacant lot adjacent to the proposed pump track. The Contractor is solely responsible for any and all security measures necessary to protect stored materials and equipment.
1.15 PROPERTY AND FACILITY PRESERVATION
Attention is directed to Section 5-1.36, “Property and Facility Preservation,” of the State Standard Specifications and these Special Provisions.
Existing hardscape, retaining walls, curb, utilities, trees, shrubs, other plants and irrigation facilities not called out on the plans to be removed, which are injured or damaged by reason of the Contractor's operations, shall be replaced or restored by the Contractor at the Contractor’s expense.
1.16 PRECONSTRUCTION PHOTOGRAPHS
Preconstruction photographs shall be taken by the Contractor before any construction begins. Each photograph shall be taken from a point between four feet (4’) and eight feet (8’) above the ground. All photographs shall show good details in both shadow and sunlit areas. The Contractor shall submit digital photography files either in .TIF or uncompressed .JPEG raster files. All photos shall be time and date stamped to confirm existing field conditions at the time the notice to proceed with construction is issued.
The Contractor shall submit all photos taken to the City via the City’s online platform (e.g., Virtual Project Manager).
The views in preconstruction photographs shall include the entire construction zone and, in particular, show the interface between the right-of-way and construction zone, and abutting property features such as, but not limited to, condition of existing str eets, sidewalks, driveways, fences, landscaping, buildings abutting work site, and existing surface utility facilities on and close to the work.
A sample of six (6) photographs shall be submitted to the City for approval before proceeding with the remaining photographs. All photographs which do not conform to these Special Provisions, as determined by the City, shall be retaken.
1.17 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore.
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2.00 MOBILIZATION
Mobilization shall conform to Section 9 -1.16D, “Mobilization,” of the State Standard Specifications and consist of preparatory work and operations, including, but not limited to, those necessary for the movement of personnel, equipment, supplies, and incidentals to the project site; for the establishment of all facilities necessary for work on the project; and for all other work and operations which must be performed or costs incurred prior to beginning work on the various contract items on the project site.
It is the Contractor’s responsibility to plan and perform all work within the time of completion as allowed in this contract.
This section also includes all necessary permits required by the Contractor.
2.01 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore.
The City shall not pay additional mobilization compensation for a contract change order or for a second mobilization if the project is extended due to weather.
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3.00 TRAFFIC CONTROL SYSTEM
This work shall include signage, flagging, traffic-handling equipment, devices and other related items to provide for safety and convenience to the public and traffic during construction.
3.01 MATERIALS
Traffic control shall conform to Section 12 , “Temporary Traffic Control ,” Section 7-1.03, “Public Convenience,” and Section 7- 1.04, “Public Safety”, of the State Standard Specifications, and the Manual on Uniform Traffic Control Devices, current California edition, available at the following website:
https://dot.ca.gov/programs/safety-programs/camutcd.
3.02 EXECUTION
While the City recognizes that the proposed bike pump track is located on City-owned property and may not impact the traveling public, the Traffic Control System specifications are intended to cover the City should the Contractor need to conduct work in the public right of way or on City-owned property requiring traffic control.
Traffic Control Plans (hereinafter "TCP") shall be developed for the Project to assure that adequate consideration is given to the safety and convenience of motorists, pedestrians, bicyclists, and workers during construction. The TCP shall include all work within the City rights-of-way, and applicable, private streets adjacent to the construction zone. Individual TCP’s shall be submitted to the Engineer for review a minimum of ten (10) working days prior to starting any work covered by a particular TCP . Non - compliance with any stipulation of this Section will be justification for the City to stop work.
Pedestrian access shall be provided throughout construction areas within the right of way , and as appropriate, on private property where City construction may occur.
The Contractor shall notify interested parties and/or agencies required by the Engineer as to any road closures, the expected duration, and detours . City staff will notify law enforcement and fire district personnel.
Driveways shall be usable at all times, unless the Contractor has made special arrangements with the property owner to close a driveway.
The Contractor shall be solely responsible for pedestrian and vehicular movement through the project area and shall assume full liability for any and all claims arising out of the construction of the project.
All traffic control devices including, but not limited to, traffic cones or portable delineators, telescoping flag trees, arrow boards, barricades, and signs shall be placed before beginning work and shall be removed from the right-of-way at the end of each day or shift, or, for long-term closures, when no longer needed, and shall be placed so as to not obstruct bicycle lanes and pedestrian facilities. All traffic control devices left in the right-of-way by the Contractor are subject to removal by the City.
The Contractor shall be required to pay any costs incurred by the City associated with the removal of these devices. No equipment shall be parked within any traffic lanes, medians, or within the public right of way at any time of day or night, including holidays and weekends, without an approved lane or road closure. The Contractor shall notify the City a minimum of three (3) Working Days in advance of any lane closure and twenty (20) Working Days in advance of any road closure.
Flagging
Flaggers shall perform their duties and shall be provided with the necessary equipment in accordance with Manual and the current “Flagging Handbook” published by the American Traffic Safety Services 568
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 10 Association (ATSSA). The equipment shall be furnished and kept clean and i n good repair by the Contractor at the Contractor's expense. All flaggers shall be trained as required by Cal/OSHA Title 8, Section 1599, and proof of such training shall be made available by the Contractor upon request by the City. Any flagger, in the opinion of the City, not performing in a safe manner or in a manner conducive to public safety must be removed and replaced by the Contractor immediately.
Flaggers shall be used where necessary to control the flow of traffic through the construction site and shall be used in all cases where traffic is being routed through the construction zone under one- lane, two-way traffic controls, or when ordered by the City.
Flagging Costs
Unless specified elsewhere in the se Special Provisions, the cost of furnishing al l flaggers, including transporting flaggers to provide for passage of public traffic through the construction site shall be considered included in the Traffic Control System bid item and no additional compensation will be made.
3.03 PUBLIC ACCESSIBILITY
The Contractor shall provide access to the public through the project site at all times. The Contractor shall provide access to adjacent properties at all times. The Contractor shall maintain access to properties and pedestrian access even after hours for the life of the construction. Temporary access ramps shall be installed to maintain access and shall be shown on the Contractors staging plan.
The Contractor shall be responsible for designing working drawings, constructing and providing a safe and adequate continuous, accessible and safe path of travel around or through localized construction work zones and to each building, business and property utilized by the public. The Contractor shall use temporary asphalt, aggregate base, wood/metal ramps, signs, cones, barricades, flashers, and flaggers to direct and channel the public during and after construction. All proposed closures of a pedestrian access path shall be submitted in writing to the Engineer for review and approval. Advance warning shall be provided to the public should an access path be closed. All safe paths of travel shall be in compliance with Americans with Disabilities Act Accessibility Guidelines (ADAAG), Americans with Disabilities Act (ADA) regulations and the California Manual on Uniform Traffic Control Devices (CAMUTCD).
Materials
Materials used for public accessibility during construction include, but is not limited to:
Temporary Hot-mix Asphalt Concrete (cut back asphalt concrete not permitted) Temporary Wood Ramp
Aluminum Modular Ramps. EZ-Access, or approved equal.
Contact info: www.ezaccess.com, Phone 800-451-1903.
Four (4) foot wide minimum walking surface with running slope not to exceed eight (8) percent. Barricade materials: Delineators, A-Frames, Barrier Caution Tape, Fencing Material Non-skid tape
Four (4) inch timber, or equivalent, at the bottom of any railing to provide for the sight impaired
Installation
Temporary ramps shall be constructed so installation and removal will not damage existing pavement, curb and/or gutter.
Temporary ramps shall have a minimum four (4) foot wide walking surface and a running slope not to exceed eight (8) percent.
Temporary ramps shall meet existing surfaces without gaps. When required for drainage, a Schedule 40 PVC pipe, with minimum 2-inch diameter, shall be installed under or through ramp in gutter or flow line.
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 11 Transitions between temporary ramps and the street or sidewalk surfaces shall be smooth.
Sides of the temporary ramps shall be protected where drop-offs exceed six (6) inches.
Temporary ramps shall be provided to the public leading to businesses. Temporary ramps at the corners of the intersections shall be made of temporary AC pavement to ensure that a smooth transition is provided for the public as well as auto traffic. All temporary wooden ramps shall be maintained throughout the construction project. The Contractor shall maintain the structural integrity of the ramps. No loose, splintered boards or nails will be acceptable.
Maintenance of a Clear and Accessible Public Corridor
The Contractor shall maintain a four (4) foot accessible corridor that provides at least one safe path of travel for the public at all times for the duration of the project. Conversely, if a safe path of travel is not available, the Contractor shall post the sidewalk as being closed, however, access must still be maintained to each business. Signage shall be placed at the location of closure and at the next intersection in both directions, advising of the closure but noting that access is still available to all businesses. All proposed closures of a pedestrian access path shall be submitted in writing to the Engineer for review and approval.
The Contractor shall provide a path to the businesses and residents, using aggregate base to backfill, after demolition of the concrete sidewalk, curb and gutter. The aggregate base shall be firmly packed to establish a safe and ADA compliant path, along the entire work zone.
Installation of Barricades
Barricades, which will provide protection for the public from traf fic or construction operations, shall be installed in the following locations:
Between the access route and any adjacent construction site. Between the alternate circulation path and any adjacent construction site. Between the alternate circulation path and the vehicular way, if the alternate circulation path is diverted into the street.
Between the alternate circulation path and any protruding objects, drop-offs, or other hazards to the public.
At the down curb ramp of an intersection, if opposite up curb ramp is temporarily or completely blocked, and no adjacent alternative circulation path is provided.
Surfacing of Public Corridors
During construction, tripping hazards and barriers must be removed to maintain an accessible safe path of travel. The surface of the path of travel shall be skid resistant and free of irregularities.
Opened crosswalks, ramps and walkways in general shall be kept free of debris and obstructions.
Identification of Safe Path of Travel
If alternate circulation routes are provided for the public to bypass the construction site, the route shall be clearly defined and advance warning shall be provided to clearly delineate the alternate circulation route.
Any change of level in a path of travel that is over ¼ inch (1/2” maximum) height must be beveled at 45 degrees to provide a smooth, non-tripping transition. The Engineer shall review and approve any public access limitations and notification requirements for pedestrians with mobility or vision impairments.
When using A-frames for defining a path of travel, A-frames shall be placed end to end (no spacing between barricades) to provide a continuous guide for individuals using canes. A-frames shall be connected with 2x4’s that are continuous and are attached to the base of the barricade system at two (2) to four (4) inches from the ground.
Caution tapes shall not be used as barricades or to define a path of travel but may be used to highlight 570
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 12 danger or in conjunction with barricades. Excavated areas shall be secured by means of barric ades or temporary fences.
The bottom three (3) inches of any fencing material used shall be made solid to act as a guide for canes used by the visually impaired. Wood, sheet metal, railings, or other approved material may be used at the bottom portion of the fence.
Curb ramps leading to closed crosswalks shall be appropriately barricaded. Temporary ramps shall be provided at temporary crosswalks and shall be able to direct blind pedestrians to and through the temporary path of travel. R9-3a and R9-3b signs shall be mounted on the barricade to advise pedestrians of closed sidewalk and directed routes.
No trucks or equipment shall be parked or obstructing the public path of travel at any time.
Warning Signs
The Contractor shall provide warning signs for temporary ramps and barricades. Warning signs shall be located at both the near side and the far side of the intersection preceding a temporarily completely blocked public way.
Restoration of Public Routes
After construction, the site shall be restored to its former condition, or new condition as required.
3.04 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore.
The City shall not pay additional traffic control compensation for a change work order or for a second mobilization if the project is extended due to weather. 571
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4.00 CONSTRUCTION STAKING
The Contractor shall provide a copy of staking notes to the Engineer prior to any stakes being used. The Contractor shall furnish and set all construction stakes and marks to establish the lines, g rades, and sections required for the completion of the work as shown on the plans and as specified in the State Standard Specifications and these Special Provisions.
Prior to any construction work, the Contractor shall adequately survey the existing horizontal and vertical control points of all facilities that are to be restored to their original locations at the end of construction.
Before starting any survey work, t he Contractor shall submit in writing for approval to the Engineer, the proposed procedures, methods, equipment, and typical stake markings to be used. All procedures, methods, and typical markings shall be in accordance with the Caltrans Surveys Manual, C hapter 12, “Construction Surveys,” and which is available at https://dot.ca.gov/programs/right-of-way/surveys- manual-and-interim-guidelines.
In the event the Contractor's operations destroy any of the project control points or construction staking, the Contractor shall replace project control points and construction staking at Contractor’s expense, subject to verification by the Engineer. The cost of any such verification by the Engineer will be deducted from any moneys due or to become due the Contractor. The Contractor will not be allowed any adjustment in contract time for such verification of project control points by the Engineer.
Construction stakes shall be removed from the site of the work when no longer needed.
It shall be the Contractor’s responsibility to notify the Engineer of any discrepancies found between the field conditions and grades and notes shown on the Plans.
4.01 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore.
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5.00 WATER POLLUTION CONTROL PLAN (WPCP)
The Contractor shall develop and implement a WPCP in accordance with Section 13, “Water Pollution Control,” of the State Standard Specifications, and these Special Provisions.
The Contractor shall generate the WPCP and submit to the Engineer for review and approval.
Within this section, references to Water Pollution Control shall be consistent with content and requirements of the Project WPCP preparation, execution, and final stabilization requirements.
Unless arrangements for disturbance of areas outside the project limits are made by the City and made part of the contract, it is expressly agreed that the City assumes no responsibility whatsoever to the Contractor or property owner with respect to any arrangements made between the Contractor and property owner to allow disturbance of areas outside the project limits.
The Contractor shall be responsible for the costs and for liabilities imposed by law as a result of the Contractor’s failure to comply with the provisions set forth in these Special Provisions, including but not limited to, compliance with the provisions of the 2009 Approved Stormwater Quality Improvement Plan (SQIP), the Permit, and Federal, State, and local regulations. For the purposes of this paragraph, costs and liabilities include, but are not limited to, fines, penalties, and damages whether assessed against the City or Contractor, including those levied under the Federal Clean Water Act and the State Porter Cologne Water Quality Act.
At reasonable times and upon presentation of credent ials and other documents as may be required by law, the Contractor shall allow authorized agents of the California Regional Water Quality Control Board, State Water Resources Control Board, United States Environmental Protection Agency and the local storm water management agency to:
A. Enter upon the construction site and the Contractor’s facilities pertinent to the work; and B. Inspect the construction site and related soil stabilization practices and sediment control measures.
The Contractor shall notify the Engineer immediately upon request from the regulatory agencies to enter, inspect, sample, monitor or otherwise access the project site or the Contractor’s records.
5.01 WPCP PREPARATION, APPROVAL, AND UPDATES
The Contractor must provide a Qualified SWPPP Developer (QSD) to prepare the WPCP. The Contractor will provide a QSD and Qualified SWPPP Practitioner (QSP) to perform the testing and inspection. This does not relieve the Contractor from their duties to amend and follow the WPCP to include inspections and implementing corrections.
The Contractor shall be required to amend the WPCP and submit to the Engineer for review and comment. Erosion and sediment control shall conform to the requirements of the current edition of the “Storm Water Quality Design Manual, Sacramento Region,” which is available at the following website:
https://www.beriverfriendly.net/stormwater-quality-design-manual/
Within 20 working days of receiving a copy of the fully executed contract, the Contractor shall submit a copy of the WPCP to the Engineer. The Engineer will have 10 days to review the WPCP. If revisions are required, as determined by the Engineer , the Contractor shall revise and resubmit the WPCP to the Engineer within 15 days of receipt of the Engineer’s comments. The Engineer will have 5 days to review the revisions. A copy of the WPCP shall be kept on the job site (in the job trailer) at all times. 573
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 15 Soil stabilization Best Management Practices (BMPs) shall be maintained on any area disturbed. All BMPs shall be installed/implemented and maintained throughout the duration of construction. These BMPs shall include (but not be limited to) the BMPs checked on the Construction Site BMPs Consideration Checklist shown in Table 1 below:
The Contractor shall provide a QSP to perform regular inspection of the site and the installed BMPs. The Contractor’s QSP shall place a record of all inspections in the project WPCP binder within 24 hours of any inspection. The project WPCP binder shall be made available to the City for review at any time during normal working hours.
Erosion and sediment control BMPs shall be placed, monitored for effectiveness, and maintained throughout the construction process.
The following precautions shall be implemented regardless of the season:
1. A stabilized construction site access should be constructed at any construction staging and/or stockpile site as determined appropriate by the Engineer.
2. Temporary stockpiling of construction materials, including vehicles and portable equipment, supplies, fuels and chemicals, will be restricted to designated construction staging areas within the project area.
3. Any wet season requirement shall be implemented if conditions exist which may cause erosion and sedimentation.
4. The Contractor shall not be limited to the requirements listed above but shall be responsible for implementing whatever measures are necessary to prevent erosion and sedimentation.
The Contractor shall recommend amendments to the WPCP, graphically and in narrative form, whenever there is a change in construction activities or operations which may affect the discharge of significant quantities of pollutants to surface waters, ground waters, municipal storm drain systems or when deemed necessary by the Engineer. The WP CP shall be amended by the Contractor’s QSD if the WP CP is in violation of any condition of the Permit or has not effectively achieved the objective of reducing pollutants in storm water discharges. Amendments shall show additional control measures or revised operations, including those in areas not shown in the initially approved WPCP, which are required on the project to control water pollution effectively. Amendments to the WP CP shall be submitted to the Engineer for review and approval in the same manner specified for the initially approved WPCP. Approved amendments shall be dated and logged in the WPCP. Upon approval of the amendment, the Contractor shall implement the additional control measures or revised operations within 3 business days or prior to any forecast rain event of 50% or greater per National Oceanic and Atmospheric Administration (NOAA).
If the project is in non-compliance at any time, the Contractor shall make a written report to the Engineer within 15 calendar days of identification of non-compliance.
5.02 WPCP IMPLEMENTATION AND MAINTENANCE
Upon approval of the WPCP, the Contractor shall be responsible throughout the duration of the project for installing, constructing, inspecting, and maintaining the control measures included in the WPCP and any amendments thereto and for removing and disposing of temporary control measures. Unless otherwise directed by the Engineer or specified in these Special Provisions, the Contractor's responsibility for WPCP implementation shall continue throughout any temporary suspension of work.
Soil-disturbed area of the project site shall be not more than 1 acre. The Engineer may approve, on a case-by-case basis, expansions of the active, soil-disturbed area limit. The Contractor shall demonstrate 574
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 16 the ability and preparedness to fully deploy soil stabilization practices and sediment control measures to protect soil -disturbed areas on the project site before the onset of precipitation. A quantity of soil stabilization and sediment control materials shall be maintained on site equal to 100 percent of that sufficient to protect unprotected, soil -disturbed areas on the project site. A detailed plan for the mobilization of sufficient labor and equipment shall be maintained to fully deploy control measures required for the protection of soil-disturbed areas on the project site prior to the onset of precipitation. A current inventory of control measure materials and the detailed mobilization plan shall be included as part of the WPCP.
Soil-disturbed areas of the project site shall be considered to be non- active whenever soil disturbance activities are to be discontinued for a period of 20 or more days and the areas are fully protected. Areas that will become non-active during the wet season shall be fully protected with soil stabilization practices and sediment control measures within 10 days of the discontinuance of soil disturbing activities or prior to the onset of precipitation, whichever is first to occur.
Soil-disturbed areas of the project site shall be fully protected at the end of each day with soil stabilization practices and sediment control measures unless fair weather is predicted through the following workday.
The Contractor shall monitor the weather forecast on a daily basis. The NOAA forecast shall be used.
Construction scheduling shall be modified, as required, and functioning control measures shall be deployed prior to the onset of the precipitation.
The Contractor shall comply with all provisions of the WPCP, including inspection and maintenance during the life of the project, including any work stoppages for any reason, incl uding weather, holidays, moratorium, utility conflicts, etc.
If the Contractor or the Engineer identifies a deficiency in the deployment or functioning of an identified control measure, the deficiency shall be corrected immediately. The deficiency may be corrected at a later date and time if requested by the Contractor and approved by the Engineer in writing, but not later than the onset of subsequent precipitation. The correction of deficiencies shall be at no additional cost to the City.
5.03 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore.
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6.00 CLEARING AND GRUBBING
Clearing and grubbing shall conform to Section 17- 2, “Clearing and Grubbing,” of the State Standard Specifications and these Special Provisions.
Do not commence site clearing operations until temporary erosion and sedimentation control measures are in place.
6.01 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore 576
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 18
7.00 EARTHWORK
Earthwork shall conform to Section 19 , “ Earthwork,” of the State Standard Specifications and these Special Provisions.
Excavate surfaces under walks and pavements to indicated lines, cross sections, elevations, and subgrades. Notify the City when excavations have reached required subgrade. If the City determines that unsatisfactory soil is present, continue excavation and replace with compacted backfill or approved fill material as directed.
Fill generated during trail excavation, borrowed from onsite stockpiles, or imported shall be uncontaminated and free of organic material, trash and other objects. Fill material shall be screened to be placed, graded, and compacted by the contractor in manner that will support the intended use.
Stockpile borrow soil materials and excavated satisfactory soil materials without intermixing. Place, grade, and shape stockpiles to drain surface water. Cover to prevent windblown dust.
Granular fill material is to be class 6 granular road base. Fill material is to be compacted to 90 -95% standard proctor density to a professionally finished surface that facilitates drainage, and accommodates riders in reasonably variable wet and dry conditions. Similar alternative to be approved by the Project Engineer and the Owner’s Representative.
Place backfill and fill soil materials in layers not more than 12” in loose depth. Each lift shall have the optimum moisture content and must be compacted to minimum 95% compaction prior to placing next lift.
Uniformly grade areas to a smooth surface, free of irregular surface changes. Comply with compaction requirements and grade to cross sections, lines, and elevations indicated on the plans. Provide a smooth transition between adjacent existing grades and new grades.
Excavated material in excess of the material used to attain finished grades shall be considered common borrow and spread on site.
Upon completion of the pump track, the Contractor shall hydroseed all denuded areas disturbed by the Contractor to facilitate vegetation growth. This hydroseeding shall be performed to the satisfaction of the Engineer.
7.01 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore. 577
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8.00 AGGREGATE BASE
Aggregate Base shall be Class 6 granular road base. Aggregate base shall be produced from commercial quality aggregate consisting of broken stone, crushed gravel, clean, rough-surfaced gravel and sand, or a combination thereof. The grading of the material shall be three-fourth inch (3/4”) maximum. Spreading and compacting shall be performed by methods that will produce a uniform base when firmly and properly compacted free from pockets and coarse or fine material.
Class 6 Aggregate Base material shall contain sufficient moisture to prevent segregation. Aggregate base materials shall be immediately spread to its planned grade and cross section. Segregation or excessive drifting or spotting material will not be permitted.
The surface of the finished aggregate base at any point shall not vary more than 0.05-foot above or below the grade established by the City.
The Contractor shall install aggregate base rock from one source to the greatest extent practical to ensure compaction testing results are reliable and consistent for the duration of the project. If additional suppliers are to be considered, the Contractor shall provide material submittals for review and approval. The Contractor shall coordinate with the Engineer to agree upon where a particular type of base rock is to be installed thereby avoiding the mixing of aggregate base rock from multiple suppliers in one area.
The Contractor shall achieve at a minimum 95% relative compaction as outlined in the City’s Quality Assurance Program. The Contractor shall refer to the Quality Assurance Program section of these Special Provisions for information related to materials testing requirements.
Proposed recycled materials shall not be used in the work unless a material submittal is approved in writing by the City.
The Contractor shall provide a material submittal to the City with laboratory test data no more than six weeks old certifying that the proposed materials meet all the quality requirements of Section 25, “Aggregate Subbases,” and 26, “Aggregate Bases,” of the State Standard Specifications. Proposed recycled materials shall not be used in the work unless a material submittal is approved in writing by the City.
The Contractor shall verify that the mix design, with ID number written on weighmaster tags, delivered to the job site matches the approved mix design. If the mix design ID numbers do not match, the product shall be rejected at no cost to the City.
8.01 DAILY SUBMITTAL
The Contractor shall submit tickets indicating the quantity of material delivered as the material arrives at the job site, or at any time upon request of the Engineer. If the Contractor does not submit the tickets at the end of each day when aggregate base is installed, a temporary stop work order may be i ssued on the construction activity with no associated cost incurred by the City. The construction activity may resume with the Engineer’s written approval upon receiving and reviewing all tickets.
8.02 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore. 578
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9.00 HOT MIX ASPHALT
The Contractor shall furnish and install hot mix asphalt (HMA) at the locations and to the depths shown on the plans in accordance with Section 39-2, “Hot Mix Asphalt,” of the State Standard Specifications, and these Special Provisions.
9.01 MATERIALS
The Contractor shall submit in writing to the Engineer a complete mix design as described in Section 39-
2.01A(3)(b), “Job Mix Formula,” of the State Standard Specifications. Mix designs must include the name of the material plant, the product name, a mix design ID number, and item of work in which it is to be used.
Hot Mix Asphalt shall be type A. All asphalt binder shall be PG 64 -10 and shall conform to the requirements of Section 92, “Asphalt Binders,” of the State Standard Specifications. Aggregate shall be 3/8” aggregate.
The Contractor shall furnish and install an emulsified asphalt (Type SSI) tack coat conforming to Sections 39-2.01C(3)(f), “Tack Coat,” and 94, “Asphaltic Emulsions,” of the State Standard Specifications.
The Contractor shall submit certification from the supplier that the material he is furnishing has been properly tested within the last 6 weeks and designed so as to meet the aforementioned specifications.
Cost of any such testing shall be the responsibility of the Contractor and/or supplier. Once a supplier's material has been found acceptable, the Contractor shall furnish material from no other source without the prior approval of the Engineer in writing.
The Contractor shall verify that the mix design, with ID number written on weighmaster tags, delivered to the job site matches the approved mix design. If the mix design ID numbers do not match, the product shall be rejected at no cost to the City.
9.02 EXECUTION
The HMA shall be placed in 3- inch maximum lifts after compaction. Conform sections shall be squared off and hand raked to a neat straight line. Edges at curb shall be hand raked and rolled with a small roller or tamper when larger roller cannot be used.
Spreading and Compaction
1. Vehicles used for hauling HMA mixtures must have tight, smooth, metal beds, and must be free from dust, screenings, excessive petroleum oils, volatiles, or other mineral spirits that may affect the mix being hauled. Trucks must be provided with tarpaulins or cargo covers of sufficient size and weight to protect the entire load.
2. Should the methods and equipment furnished by the Contractor fail to produce a layer of HMA conforming to the requirements, including straightedge tolerance, of Section 39- 2.01C(2), “Spreading and Compacting Equipment,” of the State Standard Specifications, the paving operations shall be discontinued, and the Contractor shall modify his equipment or furnish substitute equipment. The compacted material must achieve at least 85% relative compaction.
Finishing
1. The completed surface shall be thoroughly compacted, smooth, and true to grade and cross section, free from ruts, humps, depressions or irregularities. When a straight edge 12 feet long is laid on the finished surface and parallel with the center line of the surface, the surface shall not vary more than 0.01 feet from the lower edge of the straight edge. When tested 579
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WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 21 transversely to traffic, the surface shall incline continuously in the direction of the drainage so that no depressions, which will not drain, remain in the surface after rolling. Any ridges, indentations or other objectionable marks left in the surface of the HMA by equipment shall be elimin ated by rolling or other means. The use of any equipment that leaves ridges, indentations or other objectionable marks in the HMA shall be discontinued and other acceptable equipment shall be furnished by the Contractor.
Testing and Certification
During the work, the City may periodically sample and test the furnished material to ensure quality assurance in accordance with the City’s Quality Assurance Program. The Contractor will perform all required quality control testing. The City will assume the cost of all quality assuranc e testing, however, the Contractor will be required to pay for all failing test.
9.03 DAILY SUBMITTAL
The Contractor shall submit HMA Weighmaster’s Certificates as the material arrives at the job site, or at any time upon request of the Engineer. If the Contractor does not submit the Certificates at the end of the day when HMA is installed, a temporary stop work order may be issued on the paving operation with no associated cost incurred by the City. The paving operation may resume with the Engineer’s written approval upon receiving and reviewing the Certificates.
9.04 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore. 580
SPECIAL PROVISIONS
WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 22
10.00 STORMWATER DRY WELLS
Dry-Wells, regardless of the number installed, shall be constructed as shown on the plans and shall be lined with Mirafi 140N Geotextile Fabric. Fabric shall be non-woven.
Granular fill material is to be class 6 granular road base.
10.01 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore. 581
SPECIAL PROVISIONS
WHITNEY COMMUNITY PARK PUMP TRACK SPECIAL PROVISIONS - 23
11.00 PUMP TRACK
The Contractor shall construct all Main Pump Track features (not the Skill Track or the Dirt Jump Track) as shown on the plans, including all PBR Features ramps associated with the Main Pump Track. For the purposes of this contract, this includes the PBR 90 Deg Berm Turn (Section D, Sheet BP-15) shown on the plans dated 12/11/2023.
All other labor and materials necessary to provide for a complete and functioning Main Pump Track and which is not specifically covered by other sections of these Special Provisions shall be included in this bid item.
The City will retain an expert rider to independently verify that rideability and safety of the Main Pump Track. Any changes recommended by said expert rider shall be incorporated by the Contractor at no additional cost to the City.
11.01 MEASUREMENT AND PAYMENT
Full compensation for conforming to the requirements of this section of these Special Provisions shall be considered as included in the lump sum price paid for constructing the Whitney Community Park Pump Track and no additional compensation will be allowed therefore
582
City Council
Staff Report
Subject:
Fire Safe Vegetation Management
Date:
February 27, 2024
Submitted By:
Gabrielle de Farcy, Associate Management Analyst
Department:
City Manager's Office
Recommendation:
A
.
Conduct a Public Hearing to Consider Testimony
B
.
Introduce, Waive Full Reading, and Read by Title Only, an Ordinance of the City Council of the City of Rocklin To Amend Sections 1.16.010 Abatement by City, 1.16.020 Procedure for Creation of Nuisance Abatement Lien, 8.10.020 Additional Definitions, and
8.10.030 Classification of Nuisances of the Rocklin Municipal Code to Differentiate Abatement Procedure from Lien Procedure, Provide Additional Definitions and Revise Classification of Nuisances.
Background:
Beginning in August of 2023, the City Manager initiated a series of discussions and staff research regarding City weed abatement and fire safe vegetation program management with staff from the City Manager's Office, Community Development, Public Services and the Fire Department.
The Public Services Department currently manages approximately 73 City owned vacant parcels and 905 privately owned vacant parcels through a weed abatement contract. The Fire Department is currently responsible for any other privately owned properties that have a permitted structure on them.
Every spring, the Fire department sends out a postcard to pre-identified properties that have been determined to have large amounts of weeds, slope and terrain that is conducive to fire spread, and properties that receive continued complaints. In that postcard, it outlines the requirements set forth in the municipal code. The Public Services Department sends out two letters to vacant property owners with compliance requirements as well.
In the Public Services Department, all vacant parcels that do not comply with the Standards for Maintenance of Vacant Parcels are declared a nuisance by the City Council. These parcels will be abated by the weed control contractor hired by the City to perform the necessary weed abatement. When the contractor invoices the City for the abatement work, the City, in turn, invoices the property owner for the contractor’s fees plus a per-parcel administrative charge. If Item Number 4A.
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the property owner does not pay these fees, the City places a lien on the property until the fees are collected. The Fire Department issues a Notice of Violation to the property owner if a property is not in compliance. If no property owner is onsite, the letter is sent via certified mail.
Currently, inspections may be performed by three departments, Public Services, Community Development (Code Enforcement Inspector) and Fire, resulting in various interpretations of the Fire Department Standards.
Staff has determined that it is in the best interest of the City to consolidate vegetation management and weed abatement for privately owned properties and City owned properties (excluding open space) to the Fire Department.
Code Enforcement and Fire Department staff evaluated the current procedures, definitions, and classification as outlined in the Rocklin Municipal Code and identified areas of improvement and clarification. Amendment of Sections 1.16.010 Abatement by City, and
1.16.020 Procedure for Creation of Nuisance Abatement Lien, would be best practice for the City to assist with City abatement, including weed abatement, by specifically differentiating the abatement procedure from lien procedure. Abatement language and authority can be found in California Government Code section 38773.
Fire Department staff have made updates to 8.10.020 Additional Definitions, and 8.10.030 Classification of Nuisances for the following benefits:
1 .
A defined defensive space establishes a buffer zone, reducing the risk of fire spreading to structures and communities. This buffer is a vital line of defense, allowing firefighters to better protect property.
2 .
Providing clear guidelines on defensive spaces aid property owners in understanding the necessary steps to create and maintain a safe perimeter around buildings. This promotes better accessibility for firefighting personnel during emergencies. 3 .
Implementing a specific definition for defensive spaces encourages proactive measures to mitigate fire risks based on a nationally established guidelines. Well-maintained spaces can inhibit the rapid spread of flames, providing crucial time for fire containment efforts.
4 .
By instituting a standardized defensive space definition, it bolsters community-wide resilience against wildfires. Consistent guidelines ensure uniformity in preparedness, potentially reducing property damage and enhancing overall safety.
Fiscal Impact:
There is no direct fiscal impact in adopting the proposed Ordinance.
ATTACHMENTS:
1. Ordinance
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Ord. No.
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROCKLIN TO AMEND SECTIONS 1.16.010 ABATEMENT BY CITY, 1.16.020 PROCEDURE FOR CREATION OF NUISANCE ABATEMENT LIEN, 8.10.020 ADDITIONAL DEFINITIONS, AND 8.10.030 CLASSIFICATION
OF NUISANCES OF THE ROCKLIN MUNICIPAL CODE TO DIFFERENTIATE ABATEMENT PROCEDURE
FROM LIEN PROCEDURE, PROVIDE ADDITIONAL DEFINITIONS AND REVISE CLASSIFICATION OF NUISANCES (Fire Safe Vegetation Management)
WHEREAS, Section VII of Article XI of the California Constitution provides that a City may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and
WHEREAS, the City Council finds it necessary to update, consolidate, and streamline the Rocklin Municipal Code (“RMC”) periodically to comply with recent law enactments and decisions and to achieve more efficient enforcement of code violations to promote public health, safety, and welfare; and
WHEREAS, staff has identified the need to update the Rocklin Municipal Code to provide additional definitions and revise classification of nuisances for the enforcement of fire safe vegetation management; and
WHEREAS, staff has identified the need to update the Rocklin Municipal Code to differentiation the abatement and lien procedures related to fire safe vegetation management and weed abatement; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROCKLIN DOES ORDAIN AS FOLLOWS:
Section 1. Findings. The findings and recitals set forth above are true and correct.
Section 2. Purpose. The purpose of this proposed ordinance is to modify Rocklin Municipal Code (RMC) Sections 1.16.010 Abatement by City, 1.16.020 Procedure for Creation of Nuisance Abatement Lien, 8.10.020 Additional Definitions, and 8.10.030 Classification of Nuisances to provide clarification for the enforcement of weed abatement and fire safe vegetation management programs
Section 3. Authority. The City Council enacts this ordinance under the authority granted to cities by Article XI, Section 7 of the California Constitution and Government Code section 37100.
Section 4. Amendment. Section 1.16.010 of the Rocklin Municipal Code is hereby amended to read as follows:
585
Ord. No.
1.16.010 – Abatement by city.
A. Abatement Authority.
1. The California Constitution (Article XI, Section 7) grants the city the authority to make and enforce within its limits local ordinances and regulations concerning nuisances and abatement of nuisances.
2. Pursuant to California Government Code sections 38773 and 53069.4, the city may abate any nuisance at the expense of the persons creating, causing, committing or maintaining the nuisance and any and all expenses of abatement, including reasonable attorney's fees incurred, shall constitute a lien against the property on which the nuisance is maintained and such debt becomes a personal obligation against the property owner.
B. Administrative Abatement Procedures.
Notice Requirement. Whenever a responsible person refuses to abate a nuisance and the owner or person occupying the property refuses to consent to abatement by the city, the enforcement authority shall serve a written notice to abate such nuisance upon the owner of the property (as shown on the last equalized assessment roll or the supplemental roll, whichever is most current), and on any persons known to be possessing such property.
1. Contents of Notice. The notice shall include the following information:
a. The street address, legal description or other description sufficient to identify the affected property;
b. A statement that the property owner and/or person in possession of the property has a reasonable period of time from the date of the notice to voluntarily abate the nuisance. The time period for correction shall be determined by the enforcement authority;
c. A statement that the property owner and/or person in possession of the property, may, during the period of voluntary abatement, (1) file a written request for a hearing with the city clerk as provided for in Section 1.14.040 of this chapter if there is an objection to the demand to abate the nuisance, or (2) present written evidence to the enforcement authority to show that the property owner or person in possession of the property had no responsibility for creating or maintaining the nuisance on the property and that to be required to remove or abate such nuisance will cause financial or physical hardship; and
d. A statement that if the nuisance is not voluntarily abated within the stated period, and the property owner and/or person in possession of the property fails to present the information set forth in subsection (B)(3) of this section or to file a timely written request for a hearing, all persons served with such notice shall be deemed to have consented to the abatement of the nuisance and that, at the election of the city, the city will abate the nuisance and the 586
Ord. No.
costs for such abatement may be charged against the premises and may be recorded as a lien against the premises.
2. Service of Notice. The notice to abate the nuisance shall be served in accordance with RMC 1.14.029. If the responsible person is not present for personal delivery, if certified mail is refused, or if the location of a responsible person cannot be determined after diligent efforts, notices may be posted in a conspicuous place on the affected property for a period of ten calendar days and by mailing first class to the last known address. The failure to make or attempt such service on any person as required herein shall not invalidate any proceedings under this chapter as to any other person duly served.
C. Summary Abatement.
1. Summary abatement may be authorized if the enforcement authority determines that immediate action is necessary to summarily abate a dangerous condition or an imminent threat to life, health, safety, or general welfare. The cost of abatement shall be the responsibility of the person causing, allowing, committing, or maintaining the nuisance, or the owner of the property, or all of the foregoing.
Section 1.16.020 of the Rocklin Municipal Code is hereby amended to read as follows:
1.16.020 Failure to Pay Costs—Authority to Record Lien or to Declare Lien a Special Assessment Against Parcel.
A. If all or any portion of the costs and expenses incurred by the city in abating the nuisance and accounted for by the enforcement authority remain unpaid after thirty days, pursuant to authority created by law, including Government Code section 38773 et seq., such portion thereof as remains unpaid shall constitute and shall be declared to constitute a lien on the real property which was the subject of notice to abate.
B. Prior to recordation of the lien, notice shall be given to the land owner. If the land owner, after a diligent search cannot be found, the notice may be served by posting a copy of the notice upon the property subject to the lien, in a conspicuous place, for a period of ten days. The notice shall also be published in a newspaper of general circulation in the city.
C. The lien shall attach when the city manager or his/her designee records a lien listing delinquent unpaid nuisance abatement costs with the Placer County recorder's office.
The lien shall specify the amount of the lien, the date of the abatement order, the street address, legal description and assessor's parcel number of the parcel on which the lien is imposed, and the name and address of the recorded owner of the parcel.
D. In addition to the recordation of a lien, the amount of the costs and expenses incurred by the city in abating the nuisance plus a reasonable administrative fee established by the city council from time to time to cover the cost of collection may be declared a 587
Ord. No.
special assessment against any real property owned by the responsible person within the city to the extent the responsible person owns more than one parcel within the city. The city council may impose the special assessment on more than one parcel.
However, the amount of the assessment shall not exceed the penalty imposed for the administrative violation. The city manager or his/her designee may present a resolution to the city council to declare a special assessment, and upon passage and adoption thereof, shall cause a certified copy thereof to be recorded with the Placer County recorder's office. The assessment may then be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subjected to the same penalties and the same procedure and sale in case of delinquency as provided for ordinary municipal taxes.
E. In the event that the lien or special assessment is discharged, released, or satisfied, either through payment or foreclosure, notice of the discharge containing the information specified in subsection (D)(1) of this section shall be recorded.
Section 8.10.020 of the Rocklin Municipal Code is hereby amended to read as follows:
8.10.020 - Additional definitions.
As used in this chapter, certain additional terms and words are defined as follows:
"APN" means the assessor's parcel number as assigned by the county of Placer. "Building or structure" means any structure used for support or shelter of any use or occupancy.
“Defensible space” means the required space between a structure (home, detached garage, outbuildings, etc.) and the wildland area that, under normal conditions, creates a sufficient buffer to slow or halt the spread of a wildland fire to a structure. Defensible space protects the structure from igniting due to direct flame or radiant heat. "Flammable vegetation and materials" means any growth or refuse piles that will readily burn, including, but not limited to, dead pine needles or leaves, dry weeds and grasses over four inches in height, dead or dying trees or tree limbs, other dry invasive or noxious plants, or refuse piles, that constitute a fire hazard and endanger people or property. “Improved property” means but is not limited to any real property developed with at least one building or structure.
"Refuse piles" means accumulations of flammable vegetation, rubbish and/or scrap materials, including, but not limited to, waste paper, wood, hay, straw, weeds, litter or other flammable waste.
Section 8.10.030 of the Rocklin Municipal Code is hereby amended to read as follows:
588
Ord. No.
8.10.030 Classification of nuisances.
The following acts and conditions, when performed or existing upon any lot, piece or parcel of land within the city of Rocklin, are hereby defined as and declared to be public nuisances because they are deemed to be injurious or potentially injurious to the public health, safety and welfare and they have a tendency to degrade the appearance and property values of surrounding property or cause damage to or interfere with public rights- of-way:
A. Maintain defensible space of 100 feet from each side and from the front and rear of each structure, but not beyond the property line unless otherwise required by law of this code. The amount of fuel modification necessary shall consider the flammability of the structure as affected by building material, building standards, location, and type of vegetation. Fuels shall be maintained and spaced in a condition so that a wildfire or other fire burning under average weather conditions would be unlikely to ignite the structure.
Property subject to this Code shall be mowed or cleared of all flammable vegetation and materials, as defined in this chapter. Any plant, tree, or shrub adjacent to or overhanging a building and/or structure shall be free of dead or dying wood. This does not apply to ornamental shrubbery or similar plants that are used as a groundcover that does not readily support the ignition of fire or a means of rapidly transmitting fire from the growth to any building or structure. A person is not required to manage fuels on land if that person does not have the legal right to manage fuels, nor is a person required to enter upon or to alter property that is owned by any other person without the consent of the owner of the property.
B. All lots, pieces or parcels of land within the city of Rocklin, whether improved or unimproved property, shall be in compliance with standards for the maintenance and control of flammable vegetation and materials. The standards shall be reviewed and may be amended from time-to-time in response to environmental or geographical conditions.
Standards shall be effective upon adoption by the city council.
C. The fire chief or his or her designee is authorized to grant exemptions upon any lot, piece or parcel of land within the city of Rocklin upon finding that such exemption is necessary for public health, safety, or welfare.
Section 5. Severability. If any section, sub-section, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, sub-section, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, sub-sections, sentences, clauses, phrases or portions to be declared invalid or unconstitutional.
Section 6. Environmental Analysis. The City Council hereby finds that this ordinance is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Sections 15060, subdivision (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect 589
Ord. No.
physical change in the environment) and 15061, subdivision (b)(3) (there is no possibility the activity in question may have a significant effect on the environment) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Section 7. Effective Date. This ordinance shall take effect thirty (30) days after the day of its adoption.
Section 8. Publication. Within fifteen days of passage of this ordinance, the City Clerk shall cause the full text of the ordinance, with the names of those City Council members voting for and against the ordinance, to be published in the Placer Herald. In lieu of publishing the full text of the ordinance, the City Clerk, if so directed by the City Attorney and within fifteen days, shall cause a summary of the ordinance, prepared by the City Attorney and with the names of the City Council members voting for and against the ordinance, to be published in the Placer Herald, and shall post in the office of the City Clerk a certified copy of the City Council members voting for and against the ordinance. The publication of a summary of the ordinance in lieu of the full text of the ordinance is authorized only where the requirements of Government Code section 36933(c)(1) are met.
590
Ord. No.
INTRODUCED at a regular meeting of the City Council of the City of Rocklin held on February 27, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Rocklin held on _________________, 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Greg Janda, Mayor
ATTEST:
Avinta Singh, City Clerk
First Reading:
Second Reading:
Effective Date:
591
City Council
Staff Report
Subject:
Fiscal Year 2023/24 Second Quarter: Financial Report, Budget Amendments, and Strategic Plan Update
Date:
February 27, 2024
Submitted By:
Daniel Choe, Deputy Director of Administrative Services Sherri Conway, Assistant City Manager
Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the City Council of the City of Rocklin Accepting the Quarterly Financial Report for the Quarter Ended December 31, 2023, and Amending the Fiscal Year 2023/24 Budget.
Background:
The quarterly financial report provides an overview of the City of Rocklin's current financial position. The City departments and the Finance division evaluate budget-to-actual performance for fiscal soundness or potential issues requiring immediate actions, recommend any necessary mitigating plan, and to make operational changes as required.
Fiscal Year 2022/23 General Fund Excess Resources
As reflected in the fiscal year (FY) 2022/23 Annual Comprehensive Financial Report (ACFR), year-end net resources resulted in one-time General Fund budgetary resources of approximately $3.1 million. The City’s Key Management Practices require City Council approval to use General Fund year-end surplus for one-time expenditures towards programs or projects.
After careful consideration, staff recommends using these one-time expenditures to support the following City Council priorities and the City’s core services.
Enterprise Asset Management System: $1 million
: An Asset Management System (AMS) is
software designed to monitor, maintain, and optimize an organization’s assets throughout their lifecycle. It seamlessly integrates service requests, work orders, inspections, resources, and the mobile workforce. The AMS is essential in managing various service operations, including workflow tasks, plan review processes, fee calculations and payments, inspections, licensing renewals, code enforcement, and reporting. Currently, each department utilizes some form of AMS or other tools to manage their work. However, these tools lack integration, requiring resources and expertise in multiple systems. IT staff must be trained and proficient in Item Number 5A.
592
supporting and managing all these systems, which also demand server resources and require client software to be installed on desktops. A centralized and comprehensive approach to asset management would significantly benefit the City, enhancing service delivery, and ultimately, customer satisfaction.
Whitney Community Park Parking Lot Expansion: $800,000
: On June 27, 2023, the City
Council approved the final design of the Whitney Park Pump Track and prioritized the project components. This design incorporates an ADA path to the existing parking lot; however, the current parking facility lacks sufficient spaces for the pump track, bicycle playground, and other amenities in the park. This funding will facilitate the expansion of the parking lot to address this need.
Sunset Whitney Recreation Area Maintenance Yard: $600,000 : The Parks and Recreation
Department recommends building a new maintenance yard at the Sunset Whitney Recreation Area. This facility will play a pivotal role as a dedicated space for year-round storage of equipment, staging, supplies management, weed abatement, and overall park maintenance operations. The proposed plan includes a metal storage structure, a sturdy concrete foundation, improvements to access and roadways, installation of a CMU block wall for security and aesthetic purposes, utility connections for water, sewer, and power, along with the demolition of the existing outdated structure.
Fire Radios: $250,000
: The Rocklin Police and Fire Dispatch Center will be transitioning from VHF to a digital radio system due to aging infrastructure. The Fire Department is replacing outdated equipment with radios aligning with the Police Department, ensuring compatibility with both VHF and digital systems. This upgrade enables seamless communication with other agencies during disaster responses, enhancing overall emergency response effectiveness and public safety.
Fleet Electrification Study: $100,000
: In light of recent and ongoing updates to the Advanced Clean Fleets Regulation by the legislature concerning Fleet Electrification, it is essential to conduct a comprehensive study of the current fleet and infrastructure. This study aims to determine the necessary updates that the Fleet Division should implement to comply with both existing and new requirements. The outcome of this study will be a master plan for the phased implementation of fleet electrification, identifying the path forward, infrastructure needs, vehicle requirements, and providing cost estimates.
Open Swim: $80,000
: To gauge community interest and need for additional summer recreational activities, the Parks and Recreation Department is launching a recreational swim pilot program. The program aims to provide Rocklin residents with access to the Rocklin High School Pool for recreational swim during the summer of 2024.
Document Digitization: $80,000
: The City has a plan to upgrade its current, outdated, and out- of-service document management system. This system serves as an automated, centralized hub for organizing diverse formats of essential documents in the modern workplace and facilitates the conversion of paper documents into digital content. An electronic document management system can significantly reduce costs associated with misfiled or lost documents, regulatory violations, paper, and other resource wastage, along with common data entry errors. While the funds for the system have been previously approved by the City Council, additional resources are needed to effectively digitize paper documents. These include, but are not limited to, various permits, historic development records, plans, and 593
financial records.
Department Organizational Assessment: $75,000
: To provide funding to conduct an
organization study for the Public Works Department. The organizational assessment will enable the City to better allocate Public Works resources and provide a comprehensive understanding of an organization’s current state, enabling management to make informed decisions, improve processes, foster a positive and effective work environment, and increase satisfaction.
Fleet Capital Reserve: $54,550
: The City funds the cost of replacement vehicles and
equipment over the asset’s useful life. This ensures the systematic replacement of vehicles and equipment to keep the City’s vehicular fleet safely and properly operating. As of June 30, 2023, the Fleet Replacement Fund is at 5.8 million, equivalent to 61% of the vehicle depreciation cost. Staff recommends allocating $54,550 to the Fleet Capital Reserve.
Building Reserve: $50,000
: This reserve was established to fund capital maintenance projects to sustain existing City facilities or to support the expansion of existing City facilities to address workforce needs of City services. Staff recommends allocating $50,000 to the Building Reserve.
FY 2023/24 Quarterly Financial Report
The Quarterly Financial Report for the quarter ended December 31, 2023 is included as Exhibit A to the Resolution. As part of this review, staff has identified areas requiring operational changes, as well as necessary budget amendments previously approved by the City Council after its December 12, 2023 adoption of the First Quarter Financial Report and amended budget. The recommended changes and amendments are attached as Exhibit B to the Resolution. The following provides details on recommended budget amendments:
Sales Tax, Net Change: $(420,000)
: Sales tax made up approximately 32% of the General
Fund revenues. Anticipating a slowdown in taxable merchandise spending, staff adjusted the growth projection for FY 2023/24 sales tax revenues during the budget development. Despite adopting a conservative forecast, the projected overall sales tax revenue for the remainder of the year is expected to fall short, necessitating a downward revision of the sales tax budget by $420,000. Recent indicators suggest a tempering of inflation, while consumers remain cautious due to interest rate hikes, leading to reductions in savings and spending. These trends are further reflected in diminished transactions in the building and construction and general merchandise sectors.
Interest Earnings, Net Change: $450,000
: In December 2022, the City entered into a contract
with an investment advisory firm to administer its excess funds, not immediately required for use. This strategic decision was a shift from predominantly holding the City's funds in the Local Agency Investment Fund and the County Treasurer’s Pooled Investment Fund to adopting a more robust and diversified investment strategy. This change, combined with favorable market conditions, resulted in higher returns through December 31, 2023, and is anticipated to continue. Consequently, staff recommends a budget increase of $450,000 for interest earnings.
The actions recommended in this Report address the adjustments necessary to implement the City’s operational requirements for the remainder of the current fiscal year and provide additional resources for priorities and services as directed by the City Council. 594
2023-2025 Strategic Plan
Update
Additionally, during
the May 9, 2023 City Council Meeting, the City Council affirmed the outcomes of the 2023-2025 Strategic Planning and Two-Year Work Plan Items. The 2023- 2025 Strategic Plan and associated Two-Year Work Plan Items were developed by City Council and City staff following the March 22, 2023 Strategic Planning workshop. The strategic outcomes or 5 “Pillars”, along with the directional statements, served as a guiding tool for staff to develop the two-year programs and project goals as outlined in the Work Plan Matrix. The items identified in the Work Plan Matrix are the focus of staff and other resource priorities for the next two years.
The Strategic Plan Program Update (Attachment 4) serves to track the staff-recommended and City Council approved Two-Year Work Plan Items and prioritize the strategic outcomes that are designed to create progress and meet community needs in each pillar. The matrix tracks the progress of the two-year work plan items during the second quarter of Fiscal Year 2023/24 (October - December 2023).
Staff will continue to provide progress updates to City Council as part of the quarterly budget update.
Fiscal Impact:
Sufficient funds are available in their respective funds in the Fiscal Year 2023/24 Operating Budget to support the staff recommendations.
ATTACHMENTS:
1. Resolution
2. Resolution Exhibit A - FY24 Second Quarter Financial Report
3. Resolution Exhibit B - Budget Amendments
4. Strategic Plan Progress Update October - December 2023 595
RESOLUTION NO. 2024-
ACCEPTING THE QUARTERLY FINANCIAL REPORT
FOR THE QUARTER ENDED DECEMBER 31, 2023 AND
AMENDING THE FISCAL YEAR 2023/24 BUDGET
WHEREAS, the quarterly financial report provides an overview of the City of Rocklin’s current financial position, and in connection therewith, City departments with the Finance division evaluate budget-to-actual performance for fiscal soundness or potential issues requiring immediate actions, recommend any necessary mitigating plan, if needed, and to make operational changes as required. The Quarterly Financial Report for the quarter ended December 31, 2023 is attached hereto as Exhibit A; and WHEREAS, as part of this review, staff has identified areas requiring operational changes as well as the necessary budget amendments based on the appropriations previously approved by the City Council from the fiscal year 2023/24 budget to date. The recommended budget adjustments are attached hereto as Exhibit B.
NOW, THEREFORE, the City Council of the City of Rocklin does resolve as follows:
Section 1. The City Council of the City of Rocklin accepts the Quarterly Financial Report for the quarter ended December 31, 2023 as reflected in Exhibit “A,” attached hereto and incorporated herewith by reference.
Section 2. The FY 2023/24 Budget is amended as outlined in Exhibit “B,” attached hereto and incorporated herewith by reference.
PASSED AND ADOPTED this 27th day of February 2024, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
____________________________________________
Greg Janda, Mayor
ATTEST:
__________________________________
Avinta Singh, City Clerk
596
1 | P a g e
Fiscal Year 2023/24 Quarterly Financial Report
For the Quarter Ended December 31, 2023
The quarterly financial report provides an overview of the City of Rocklin’s (City) current financial position.
The City departments and the Administrative Services - Finance Division evaluate budget-to-actual performance for fiscal soundness or potential issues requiring immediate action, any necessary mitigating plans, or operational changes required.
On June 27, 2023, the City Council adopted Resolution No. 2023-109 approving the FY 2023/24 Budget, which totals $119 million for operations and capital improvements for all funds, and $67.4 million in the General Fund. Year-to-date expenditure budget through December 31, 2023 is $73.2 million, as amended.
This reflects the City Council approved budget amendments and carryforward funds from fiscal year (FY) 2022/23 to support projects, grants, and equipment purchases continued from the prior year.
Economic Development Update
Labor Market Data
The City of Rocklin’s unemployment rate was at 3.9% in December 2023, with a labor force of 35,400 and employment at 34,000. The unemployment rate in the Sacramento--Roseville--Arden-Arcade MSA was
4.7% in December 2023, up from a revised 4.5% in November 2023, and above the prior year estimate of
3.5%. This compares with an unadjusted unemployment rate of 5.1% for California and 3.5% for the nation during the same period. The unemployment rate was 4.4% in El Dorado County, 4.0% in Placer County,
4.7% in Sacramento County, and 5.3% in Yolo County.
Between December 2022 and December 2023, total jobs in the region increased by 29,400 or 2.7%. The education and health services sector saw significant growth, adding 11,600 jobs and leading year-over-year job expansion for the region. Specifically, healthcare and social assistance contributed 11,200 jobs, while private educational services accounted for an additional 400 jobs. Government payrolls expanded by 5,400 jobs since last December, with gains distributed across local government (up 4,200 jobs), state government (up 5,400 jobs), and federal government (up 200 jobs).
Year-over-year construction payrolls increased by 5,400 jobs. Within the industry sector, the construction of buildings increased by 4,700 jobs, while specialty trade contractors gained 1,200 jobs.
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In contrast, three industries reported year-over-year declines. Financial activities experienced a decrease of 2,300 jobs, and information saw a drop of 600 jobs.
Between November 2023 and December 2023, combined employment in the counties of El Dorado, Placer, Sacramento, and Yolo decreased by 1,700 to total 1,113,800 jobs. The private education and health services sector increased by 800 jobs. Healthcare and social assistance gained 900 jobs. However, 100 jobs were lost in private educational services. The construction sector experienced a typical seasonal decline in December, with a reduction of 1,800 jobs. Specialty trade contractors were responsible for half of the decrease and construction of building loss by 300 jobs.
Government employment lost 800 jobs following four consecutive months of job gains. The decline was sought in local government (down 600 jobs) and state government (down 800 jobs). Other services recorded a month-over drop of 700 jobs. In contrast, leisure and hospitality reported a gain of 1,000 jobs, and recreation gained 700 jobs.
Accommodation and food services gained 300 jobs.
Residential Real Estate
Between the 4th Quarter 2022 and 2023, the median home price in Rocklin increased by 5.3% for detached single-family residential properties, reaching a median home price of $685,000. However, the median home price in Rocklin decreased by 4.2% from the previous quarter. The average days on the market show how many days, on average, a property is on the market before it sells. In December 2023, the average days on the market were 45, reflecting a 40.6% increase from the previous month’s 32 days.
General Fund Revenues
The following chart reflects the current fiscal year’s budget to actual revenue received through December 31, 2022, and the comparative budget to actual revenues from the prior year for the same period.
General Fund Revenue Summary
For the Quarter Ended December 31, 2023
General Fund operating revenues appear to be within budgetary expectations as of December 31, 2023.
Year-to-date through December 31, the City’s General Fund revenue is $16.2 million, representing 24.7% of General Fund total resources expected to be received for FY 2023/24. Overall, General Fund total Revenue Category
Budget
FY 2022/23
Revenues
through
12/31/2022
% Received
FY 2022/23
Budget
FY 2023/24
Revenues
through
12/31/2023
% Received
FY 2023/24
Property Tax 22,191,300 306,986 1.4% 24,006,800 295,743 1.2% Sales and Use Tax 20,209,000 7,019,170 34.7% 21,157,300 7,119,238 33.6% Building Permits 3,161,300 1,429,210 45.2% 3,515,300 1,341,365 38.2% Franchise 2,416,800 464,256 19.2% 2,465,100 476,657 19.3% Other Revenues 12,370,700 4,574,981 37.0% 14,527,200 6,983,379 48.1% Total 60,349,100$ 13,794,603$ 22.9% 65,671,700$ 16,216,383$ 24.7% 598
3 | P a g e
resources remain consistent with the prior year; however, the Sales and Use Tax revenue category shows a sign of a continued slowdown in consumer spending, and it is expected to come in lower than what was originally anticipated for the remainder of the fiscal year.
Property Tax. Property taxes are the largest General Fund revenue source, accounting for approximately 37% of all General Fund revenues. Most of the City’s secured property tax revenues are received in January and May.
Sales and Use Tax. Sales and use taxes make up approximately 32% of General Fund revenues. Sales tax is imposed on the total retail price of any tangible personal property and the use or storage of such property. Year-to-date through December 31, sales tax revenues are $7.1 million, up 1% from the prior year. The City’s tax consultant is projecting this trend to continue, with the full year’s sales tax revenue expected to be approximately 2% higher than the revenue received in FY 2022/23. Despite the expected slight revenue growth, it falls short of the growth anticipated in the FY 2023/24 budget. A slowdown in the building and construction industry, general consumer goods, and State and County pools could result in revenues being approximately 2% less than the FY 2023/24 budget. Given the volatility of sales tax, staff constantly monitors sales tax revenues for signs of performance above or below the budget.
Building Permits. Year-to-date building permit revenue through December 31, 2023 is $1.3 million (38.2% of budget) compared to $1.4 million (45.2% of budget) one year ago. Large multi-family projects have greater impact on the amount of building permit revenue received as permits are often processed at one time for the entire project. As the timing of anticipated multi-family projects are subject to change, staff will continue to monitor for signs of above or below budget performance.
Franchise Tax. Franchise tax includes fees from gas, electric, garbage, and telecommunication services.
Year-to-date franchise tax revenue is $0.48 million (19.3% of budget) compared to $0.46 million (19.2% of budget) one year ago.
Other Revenues. Other General Fund Revenues through December 31, 2023, amount to $6.98 million (48.1% of budget) compared to $4.6 million (37.0% of budget) one year ago. A significant portion of this increase is attributed to interest earnings resulting from the City’s robust and diversified investment strategy implemented in December 2022 and favorable market conditions. Throughout the reporting period, other revenues are on track to meet the budget. Staff will continue to monitor all revenue sources and provide updates as part of these quarterly reports.
Department Revenues and Expenditures
The following charts reflect comparative budget to actual information for the General Fund departments. 599
4 | P a g e
General Fund Department Revenue Summary
For the Quarter Ended December 31, 2023
Year-to-date General Fund department revenues through December 31, 2023, amount to $3.8 million (31.4% of budget), compared to $3.5 million (42.1% of budget) one year ago. The FY 2023/24 Fire revenue budget has been adjusted to directly reflect resources from the Community Facilities District No.
1. At this time, department revenues appear to be in line with the budget.
General Fund Department Expenditure Summary
For the Quarter Ended December 31, 2023
Departments have expended approximately 35.6% of their total budget in the General Fund for FY 2023/24.
Expenditures are generally incurred as needs arise and not equally throughout the year. As of December 31, 2023, both revenues and expenditures are within budgetary expectations. Staff will continue to monitor and will present the FY 2023/24 Third Quarter Financial Report in the Summer of 2024.
Department
Budget
FY 2022/23
Revenues
through
12/31/2022
% Received
FY 2022/23
Budget
FY 2023/24
Revenues
through
12/31/2023
% Received
FY 2023/24
City Manager - - 0.0% 125,000 - 0.0% Community Development 4,255,800 1,794,468 42.2% 4,741,300 1,942,656 41.0% Fire 515,400 386,798 75.0% 2,819,500 281,462 10.0% Parks & Recreation 1,862,800 783,009 42.0% 2,479,000 1,009,101 40.7% Police 1,413,100 445,576 31.5% 1,564,800 428,391 27.4% Public Services 278,800 98,136 35.2% 245,200 96,182 39.2% Total 8,325,900$ 3,507,986$ 42.1% 11,974,800$ 3,757,793$ 31.4% Department
Budget
FY 2022/23
Expended
through
12/31/2022
% Expended
FY 2022/23
Budget
FY 2023/24
Expended
through
12/31/2023
% Expended
FY 2023/24
City Council 97,800 26,852 27.5% 99,400 32,911 33.1% City Manager 1,154,900 536,774 46.5% 1,581,558 552,305 34.9% City Attorney 1,118,400 720,628 64.4% 1,429,617 377,577 26.4% City Clerk 398,000 127,214 32.0% 329,000 96,532 29.3% Administrative Services 5,698,600 2,398,516 42.1% 6,150,891 2,407,828 39.1% Community Development 5,553,300 2,000,614 36.0% 6,446,715 1,940,149 30.1% Fire 12,417,800 5,440,862 43.8% 15,447,149 6,992,648 45.3% Parks & Recreation 6,698,800 2,768,945 41.3% 7,683,908 2,271,809 29.6% Police 21,680,100 9,301,458 42.9% 24,864,197 10,334,229 41.6% Public Services 5,501,800 1,958,208 35.6% 6,137,658 1,567,815 25.5% Non Departmental 3,399,900 1,098,875 32.3% 4,418,800 - 0.0% Total 63,719,400$ 26,378,946$ 41.4% 74,588,893$ 26,573,803$ 35.6% 600
Exhibit B
Fund Name (No.) Net Change
General Fund (100) 306,500 $
Asset Forfeiture (242) (15,000) $
Building Reserve (180) 50,000 $
SB325 Sales Tax (210) (65,500) $
Vehicle Fleet Management
(500)
54,500$
Department Fund Name (No.) FTE
Revenue/
Reimbursement
Adjustments
Expenditure
Adjustments Description
General Fund
City Manager's Office/Fire General Fund (100) ‐$ 1,228,500$ Funding for COAR Design Group architectural and engineering services for the constrution of a new fire station. Funds for the new Fire Station project were set‐aside in the General Fund fund balance. This appropration was previously approved at the December 12, 2023 City Council meeting.
Non‐Departmental General Fund (100) (420,000) $ ‐ $ Reduce the sale tax revenue budget to reflect the revised sales tax forecast.
Non‐Departmental General Fund (100) 450,000 $ ‐ $ Increase the Interest Earning revenue budget to reflect additional investment earnings.
Non‐Departmental General Fund (100) 3,089,550 $ ‐ $ Fiscal Year (FY) 2022/23 General Fund (GF) Surplus.
Non‐Departmental General Fund (100) ‐$ 54,550$ Fleet Capital Reserve allocation with the FY 2022/23 GF surplus.
Non‐Departmental General Fund (100) ‐$ 50,000$ Building Reserve allocation with the FY 2022/23 GF surplus.
Parks and Recreation General Fund (100) ‐$ 800,000$ Funding for the Whitney Community Park Parking Lot Expansion project with the FY 2022/23 GF surplus.
Parks and Recreation General Fund (100) ‐$ 600,000$ Funding for the Sunset Whitney Recreation Area Maintenance Yard project with the FY 2022/23 GF surplus.
Parks and Recreation General Fund (100) ‐$ 80,000$ Funding for the Recreational Swim Pilot Program with the FY 2022/23 GF surplus.
Total General Fund ‐ 3,119,550$ 2,813,050$ Other Funds
Non‐Departmental Building Reserve (180) ‐ 50,000$ ‐ $ Building Reserve allocation with the FY 2022/23 GF surplus.
Non‐Departmental Vehicle Fleet
Management (500)
‐ 54,500$ ‐ $ Fleet Capital Reserve allocation with the FY 2022/23 GF surplus.
Police Asset Forfeiture (242) ‐ ‐ $ 15,000$ Funding to purchase automated license plate reader cameras.
This appropriation was previously approved at the December 12, 2023 City Council meeting.
Police Traffic Safety/PD
Grants (244)
‐ 75,000$ 75,000$ Funding to conduct various operations and trainings to address traffic accident primary collision factors. Costs will be offset by the State of California Office of Traffic Safety grant for Selective Traffic Enforcement Program. The grant was previously accepted at the December 12, 2023 City Council meeting.
Public Works SB325 Sales Tax (Fund
210)
‐ ‐ $ 65,500$ Funding for Change Order No. 1 to the Contract with PBM Construction, Inc. for additional ADA ramps. The appropriation was previously approved at the December 12, 2023 City
Council meeting.
Total Other Funds ‐ 179,500$ 155,500$ Changes in Fund Balance
Description
Budget Adjustments
Adjust fund balance to reflect fund balance commitments and net budget appropriations previously approved by the City Council.
Reduce fund balance in support of an increase to ADA ramps and concrete construction services.
Adjust fund balance to reflect fund balance commitments.
Reduce fund balance in support of automated license plate reader camera purchases.
Adjust fund balance to reflect fund balance commitments. 601
City of Rocklin
Strategic Pillars 2023-25
2023-2025 Strategic Planning Framework
602
City of Rocklin
Strategic Pillars 2023-25
Rocklin is resilient and seeks ways to assist the community, businesses and citizens to be adaptable in the face of a changing world. The community is connected through a network of roadways, trails, and sidewalks that allow people and goods to move safely and efficiently throughout the City. Rocklin’s infrastructure is designed, built, and maintained to withstand and quickly recover from disasters and disruptions.
Pillar Objective Progress Update
October – December 2023
1. Work towards constructing and staffing a 4th
Rocklin Fire Station south/east of Interstate
80 On December 12, 2023, the City Council authorized a Fire Station Design/Engineering services contract and approved the purchase of equipment for the 4th station.
2. Update the City’s drainage infrastructure
master plan and prioritize critical
improvements
3. Update the City’s ADA Transition Plan Internal planning meetings underway for project roll out in 2024.
4. Establish a 3-year Pavement Management
Program
5. Create and Implement a Strategic Plan for
Information Technology services
Facilitated internal SWOT analysis (staff & customers). Reviewed RFP from outside agencies Candidate for IT Manager is in progress
6. Strengthen Interagency Relationships
(FEMA, Caltrans, CalOES, Army Corps,
CDFW, etc.)
On-going CDD regional meetings for CIP, monthly utility coordination meetings with SPMUD and PCWA, and PW and CDD regular
meetings with PCTPA.
7. Identify innovative solutions to
infrastructure maintenance and
enhancements
8. Implement programs to reduce fire loss and
increase community preparedness
Interdepartmental review has continued and changes to RMC and implementation procedures will be proposed over next quarter. 603
City of Rocklin
Strategic Pillars 2023-25
Rocklin stimulates a vibrant and diverse community through technology and efficient planning that is flexible and responsive. Rocklin’s business friendly environment promotes economic vitality, welcoming new and supporting existing businesses through excellent customer service.
Pillar Objective Progress Update
October – December 2023
1. Continue implementation of the adopted Economic
Development Strategy and support efforts to recruit,
retain and expand local businesses
Participated in the Placer Valley 2023 Economic Development event.
2. Invest in technology that supports economic
development efforts
Solar App streamlined solar permitting software implemented; in final stages of test for implementation of Electronic Plan Review software.
3. Nurture efforts to establish the Quarry District as a regional destination
Executed LOI for Big Gun property with G3 Concepts at the 11/14/2023 City Council meeting.
4. Establish a small business outreach program with
CDD to assist business owners with planning,
permitting, and inspections of new and tenant
improvement projects
Continued internal meeting group with CDD, Fire, and Finance to provide guidance on obtaining a business license.
5. Create and promote events and activities that will
attract outside visitors and overnight stays
6. Support the newly created Arts Commission’s
efforts:
o To review, update, and implement elements
of the 2016 Rocklin Public Art Master Plan
o To advise the city council on all matters
affecting arts and culture of the city
o To encourage programs in the arts and to
promote the cultural enrichment of the
community;
o To establish an effective liaison between the
city, county, and local cultural and artistic
groups
Arts commission established questions for their first
community survey, which will launch in January 2024.
Reviewed Art Master Plan.
604
City of Rocklin
Strategic Pillars 2023-25
Rocklin responsive to the unique and emerging needs of the community and offers a quality of life that supports health, happiness and prosperity to all. This results in a community where residents have access to diverse parks, unique amenities, inviting gathering spaces, quality events, and exceptional educational opportunities.
Pillar Objective Progress Update
October – December 2023
1. Update the City’s Zoning Code Released an RFP for consultant services for a comprehensive zoning code update on December 18, 2023.
2. Use master planning processes to guide future
development of parks that provide the community with
amenities that currently are not offered within
Rocklin’s park system
SWRA Building demo completed. Master planning process
on hold pending filling of Department Director position.
3. Increase recreation programing to ensure programs
are offered to all ages and abilities within the
community
Added adult sports programming; confirmed partnership
with Sierra College for 2024 Mini Maker Faire.
4. Identify critical gaps in City Trails within the public Right Of Way
Trails master plan Reidentified priorities and potential partnerships.
5. Complete the Oak & Pine affordable housing project
and support efforts to increase the availability of
affordable housing
On-going meetings, weekly project meetings with developer, project entitlement application anticipated in Q1 2024.
6. Continue to work with regional partners to address
homelessness in the City
Staff appointed as Co-Chair of LoGAC; continuing
involvement in regional meetings to address homelessness. 605
City of Rocklin
Strategic Pillars 2023-25
Rocklin seeks opportunities to diversify its funding sources to ensure a strong fiscal foundation.
Intentional long-term financial planning ensures community success and supports the City’s quality of life.
Pillar Objective Progress Update
October – December 2023
1. Evaluate opportunities to create new sources of
revenue to support critical City services
Multiple grant applications applied for and awarded
P&R evaluating player fees and cell site leases
2. Implement a new Records Management enterprise
system that is user friendly for both City staff and the public
3. Implement a Section 115 Trust to better address
CalPERS obligations
Section 115 Trust has been established.
4. Implement a two-year operating budget 25/26 research ongoing.
5. Update the City’s Purchasing Code Research ongoing.
6. Update Infrastructure Reserve Studies P&R and PS beginning coordination
7. Implement comprehensive workforce development
and succession planning programs
Program research and implementation filling of vacant
position.
8. Establish plans for reaching 100% funded for the
City’s facility and fleet replacement reserves
606
City of Rocklin
Strategic Pillars 2023-25
Rocklin residents feel comfortable walking and biking throughout the community, enjoying parks and public spaces, and know that the City is prioritizing the safety, health, and wellbeing of its community. Rocklin invests in public safety by providing resources and technology to consistently reduce crime and ensure the City remains safe. The City partners with nonprofits, social service agencies, and the community to address the Root causes of crime and social instability.
Pillar Objective Progress Update
October – December 2023
1. Maintain, improve, and expand City partnerships
that aid in crime prevention and creating a safe
community
RPD worked with Probation/ Parole conducting compliance checks throughout the city. RPD COPPS has also partnered with the Roseville PD Special Services Unit to bring services to the homeless population in both jurisdictions on a regular basis.
2. Continue public education efforts regarding
prevention of crimes of opportunity
Lunch time outreach at middle schools. Multiple Rocklin Police Activities League (RockPAL) events held.
3. Evaluate the creation of a Real Time Crime
Center
Confirmed choice of RTCC software and began procurement process.
4. Improve Interoperability between law
enforcement, fire, and EMS agencies
Fire Department received funding in Q4 to outfit five emergency vehicles with dual band radios.
5. Update antiquated Fire station alerting systems Installation of new hardware at fire stations and dispatch center; underway, project completion in early 2024.
6. Improve Cardiac Arrest Survivability by deploying
citizen CPR public education and increasing AED
distribution
Provided hands on training at Patriot Day, 10 AEDs purchased and to be placed in City buildings
607
City Council
Staff Report
Subject:
Rocklin Public Financing Authority's Audited Basic Financial Statements for the Fiscal Year Ended June 30, 2023
Date:
February 27, 2024
Submitted By:
Angela Doyle, Senior Accountant
Daniel Choe, Deputy Director of Administrative Services Department:
Administrative Services - Finance
Recommendation:
Adopt a Resolution of the Public Financing Authority of the City of Rocklin Accepting the Audited Basic Financial Statements for the Fiscal Year Ended June 30, 2023.
Background:
The Joint Exercise of Powers Act of the California Government Code Title 1, Division 7, Chapter 5, requires an annual audit of joint powers authorities and preparation of a report. The Rocklin Public Financing Authority (Authority) is a joint powers authority established by an agreement between the City of Rocklin and the former Rocklin Redevelopment Agency.
The Authority is governed by a Board consisting of members of the City Council. Oversight responsibility, the ability to conduct independent financial affairs, issue debt instruments, approve budgets, and otherwise influence operations and account for fiscal matters is exercised by the Authority’s governing board. The Authority is a blended component unit of the City for financial reporting purposes and this Basic Financial Statements report reflects the assets, liabilities, fund balances/net position, revenues, and expenditures of the Authority only.
An independent financial audit of the Rocklin Public Financing Authority, performed by the auditing firm of Chavan & Associates, LLP for the year ended June 30, 2023, has been completed. The Basic Financial Statements of the Rocklin Public Financing Authority, for the year ended June 30, 2023, have been prepared. Chavan & Associates, LLP has issued an unqualified (“clean”) auditor’s opinion.
As required, the Audited Basic Financial Statements for the Year Ended June 30, 2023 is now presented to the Rocklin Public Financing Authority Board, for acceptance by resolution.
Item Number 7A.
ATTACHMENTS:
1. Resolution
2. Resolution Exhibit A - RPFA Financials 2023
608
RESOLUTION NO. 2024- PFA
RESOLUTION OF THE ROCKLIN PUBLIC FINANCING AUTHORITY
ACCEPTING THE AUDITED BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
WHEREAS, the Joint Exercise of Powers Act, California Government Code Title 1, Division 7, Chapter 5, requires an annual audit of joint powers authorities and preparation of a report; and
WHEREAS, Chavan & Associates LLP performed an independent audit of the Rocklin Public Financing Authority for the year ended June 30, 2023, and prepared Basic Financial Statements of the Rocklin Public Financing Authority; and WHEREAS, Chavan & Associates LLP has issued an unqualified (“clean”) auditor’s opionion.
NOW, THEREFORE, BE IT RESOLVED by the Rocklin Public Financing Authority as follows:
Section 1. The audited Basic Financial Statements for the Rocklin Public Financing Authority for fiscal year ended June 30, 2023, attached hereto as Exhibit “A,” are accepted.
PASSED AND ADOPTED this 27th day of February, 2024, by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
ABSTAIN: Members:
____________________________________
Greg Janda, Mayor
ATTEST:
____________________________
Avinta Signh, City Clerk
609
Chavan & Associates, LLP
Certified Public Accountants
15105 Concord Circle, Ste. 130
Morgan Hill, CA 95037
ROCKLIN PUBLIC
FINANCING AUTHORITY
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
610
ROCKLIN PUBLIC FINANCING AUTHORITY
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
FINANCIAL SECTION
Independent Au ditor ’s Report ......................................................................................................... 1 M
anagement’s Discussion and Analysis (Required Supplementary Information) .............................. 5 Ba
sic Financial Statements:
Government -Wide Financial Statements :
Statement of Net Position .................................................................................................. 10 Statement of Acti vities ...................................................................................................... 11 Fund Financial Statements
Governmental Funds:
Balance Sheet .............................................................................................................. 12 Reconciliation of the Government Funds Balance Sheet
to the Government -Wide Financial Statement of Net Position .................................. 13 Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 14 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government -Wide Stateme nt of Activities ........................................................................................... 15 No
tes to the Basic Financial Statements .................................................................................. 17 OTHER INDEPENDENT AUDITOR ’S REPORT
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statement Performed in Accordance with Government Auditin g Standards ........................ ... ..... ............... 28 611
FINANCIAL SECTION
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[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
T
o the Board of Directors of the
Rocklin Public Financing Authority
Rocklin, California
Re
port on the Financial Statements
Opinio
n
W
e have audited the accompanying financial statements of the governmental activities of the Rocklin Public Financing Authority (the “Authority"), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.
I
n our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Authority, as of June 30, 2023 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
B
asis for Opinions
W
e conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
E
mphasis of a Matter
D
eficit Net Position
As of June 30, 2023, the Authority's net position in its Government-wide financial statements was reported at a deficit mostly because of long-term liabilities as reported in Note 3 and deferred gains from the defeasance of long-term debt. Our opinion is not modified with respect to this matter.
Re
sponsibilities of Management for the Financial Statements Au
thority’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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[email protected] • www.cnallp.com
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Audi
tor’s Responsibilities for the Audit of the Financial Statements O
ur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In
performing an audit in accordance with GAAS and GAGAS, we:
• E
xercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority ’s ability to continue as a going concern for a reasonable period of time.
W
e are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control –related matters that we identified during the audit.
Re
quired Supplementary Information
A
ccounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of 614
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[email protected] • www.cnallp.com
management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Prior-Year Comparative Information
We have previously audit ed the Authority’s June 30, 20 22 financial statements, and we expressed unmodified audit opinions on the respective financial statements in our report dated December 30, 2022.
In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2022, is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 30, 2023, on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.
November 30, 2023
Morgan Hill, California
615
MANAGEMENT’S DISCUSSION
AND ANALYSIS
4 616
Rocklin Public Financing Authority Management’s Discussion and Analysis
INTRODUCTION
The Management’s Discussion and Analysis (MD&A) is an integral component of the Authority’s Annual Financial Report, as shown in the overview below. The purpose of the MD&A is to present a discussion and analysis of the Authority’s financial performance for the fiscal year ended on June 30, 2023. This information, presented in conjunction with the Basic Financial Statements, is intended to provide a comprehensive understanding of the Authority’s operations and financial standing.
Required Components of the Annual Financial Report
THE BASIC FINANCIAL STATEMENTS
The Basic Financial Statements are comprised of 1) Government-wide (Authority-wide) Financial Statements, and; 2) Fund Financial Statements. These two sets of financial statements provide the reader two different perspectives of the Authority's financial activities and financial position.
Government-wide Financial Statements provide a longer-term view of the Authority's activities as a whole, and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the Authority as a whole, including all its capital assets and long-term liabilities on a full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the Authority's revenues and its expenses, also on a full accrual basis, with the emphasis on measuring net revenues and/or expenses for each of the Authority's programs.
The Statement of Activitiesexplains in detail the change in Net Positionfor the fiscal year.
All of the Authority's activities are required to be grouped into government activities and business-type activities. The entire amount in the Statement of Net Position and the Statement of Activities are also required to be separated into governmental activities or business-type activities in order to distinguish between these two types of activities of the Authority.
Fund Financial Statements report the Authority's operations in more detail than the government-wide statements and focus primarily on the short-term activities of the Authority's general fund and other major funds. The Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt, and other long-term amounts.
Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
5 617
Rocklin Public Financing Authority Management’s Discussion and Analysis
NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found immediately following the fund financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following table summarized the Authority’s ending net position:
Dollar Percent
2023 2022 Change Change
Assets
Current 1,602,199$ 2,088,247$ (486,048)$ -23.3% Total Assets 1,602,199$ 2,088,247$ (486,048)$ -23.3% Liabilities
Current 508,623$ 501,348$ 7,275$ 1.5% Noncurrent liabilities 1,029,183 1,526,806 (497,623) -32.6% Total Liabilities 1,537,806$ 2,028,154$ (490,348)$ -24.2% Deferred Inflows of Resources 884,408$ 1,105,511$ (221,103)$ -20.0% Net Position
Restricted 68,193$ 68,025$ 168$ 0.2% Unrestricted (888,208) (1,113,443) 225,235 20.2% Total Net Position (820,015)$ (1,045,418)$ 225,403$ 21.6% Governmental Activities
Table 1 - Net Position
The changes in current assets, total liabilities and deferred inflow of resources were the results of scheduled debt service payments and the amortization of deferred gains from defeasance. 6 618
Rocklin Public Financing Authority Management’s Discussion and Analysis
GOVERNMENTAL ACTIVITIES
An analysis of the changes in revenues, special items, and expenses by type of significant events follows:
Dollar Percent
Functions/Programs 2023 2022 Change Change
General Revenues and Special Items
Investment earnings 260,341$ 271,630$ (11,289)$ -4.2% Total General Revenues and Special Items 260,341 271,630 (11,289) -4.2% Expenses
Interest and fiscal charges 34,938 46,357 (11,419) -24.6% Total Expenses 34,938 46,357 (11,419) -24.6% Increase / (Decrease) in Net Position 225,403 225,273 130 -0.1% Net Position, Beginning of Year (1,045,418) (1,270,691) 225,273 -17.7% Net Position, End of Year (820,015)$ (1,045,418)$ 225,403$ -21.6% Governmental Activities
Table 2 - Statement of Changes in Net Position
Significant changes in governmental revenues consisted of the following:
Investment earnings accounted for 100% of all revenue. Interest rates on Authority investments are predetermined and, therefore, subject to limited interest rate risk, providing a stable revenue source for the Authority.
DEBT ADMINISTRATION
The following table summarizes the Authority’s debt at the end of the year:
2023 2022 Dollar Change % Change
Bank Loan -
RPFA Refunding 1,526,806$ 2,013,154$ (486,348)$ -24.2% Total Long-Term Debt 1,526,806$ 2,013,154$ (486,348)$ -24.2% Table 3 - Long-Term Debt
Governmental Activities
Additional detail and information on long-term debt activity is described in the notes to the financial statements (Note 3).
BUDGETARY HIGHLIGHTS
Changes from the Authority's original budget to the final budget are detailed in the Required Supplementary Information Section along with a comparison to actual activity for the year ended.
Changes to the Authority's budget that increase appropriations in a fund must be approved by a resolution of the Board. Appropriations did not change during the year. The adopted and final expenditure budget was $525,400.
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Rocklin Public Financing Authority Management’s Discussion and Analysis
REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide our customers and creditors a general overview of the Rocklin Public Financing Authority's finances and seeks to demonstrate the Authority's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Deputy Director of Administrative Services, 3970 Rocklin Road, Rocklin, California, 95677.
8 620
BASIC FINANCIAL
STATEMENTS
9 621
Rocklin Public Financing Authority
Statement of Net Position
June 30, 2023
(With Comparative Totals for the Year Ended June 30, 2022) 2023 2022
ASSETS
Current Assets:
Cash and investments 7,200$ 7,068$
Restricted cash and investments 1,594,999 2,081,179 Total Assets 1,602,199$ 2,088,247$
LIABILITIES
Current Liabilities:
Interest payable 11,000$ 15,000$
Long-term debt - due within one year 497,623 486,348 Total Current Liabilities 508,623 501,348
Noncurrent Liabilities:
Long-term debt - due after one year 1,029,183 1,526,806 Total Liabilities 1,537,806$ 2,028,154$
DEFERRED INFLOWS OF RESOURCES
Deferred Gain on Early Defeasance of Long-Term Debt 884,408$ 1,105,511$
NET POSITION
Restricted 68,193$ 68,025$
Unrestricted (888,208) (1,113,443)
Total Net Position (820,015)$ (1,045,418)$
The accompanying notes are an integral part of these financial statements.
Governmental Activities
10 622
Rocklin Public Financing Authority
Statement of Activities
For the year ended June 30, 2023
(With Comparative Totals for the Year Ended June 30, 2022) Functions/Programs Expenses 2023 2022
Governmental Activities
Interest and fiscal charges 34,938$ (34,938)$ (46,357)$ Total Governmental Activities 34,938$ (34,938) (46,357) General Revenues:
Investment earnings 260,341 271,630
Total General Revenues and Special Items 260,341 271,630 Change in Net Position 225,403 225,273
Net Position - Beginning of Year (1,045,418) (1,270,691) Net Position - End of Year (820,015)$ (1,045,418)$
The accompanying notes are an integral part of these financial statements.
Net (Expense) Revenue and
Change in Net Position
11 623
Rocklin Public Financing Authority
Balance Sheet
Governmental Funds
June 30, 2023
(With Comparative Totals for the Year Ended June 30, 2022) 2023 2022
ASSETS
Cash and investments 7,200$ 7,068$
Restricted cash and investments 1,594,999 2,081,179 Total assets 1,602,199$ 2,088,247$
FUND BALANCE
Restricted for debt service 1,602,199$ 2,088,247$
Total fund balance 1,602,199$ 2,088,247$
The accompanying notes are an integral part of these financial statements. 12 624
Rocklin Public Financing Authority
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
Total Fund Balances - Total Governmental Funds 1,602,199$ Amounts reported for governmental activities in the statement of net position were different because:
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. (11,000) Long-term debt defeasances are reported in the funds as other financing uses based on cash payments related to the repayment of debt. However, the difference between the refunded debt and the refunding debt is reported as a deferred gain or loss in the government-wide statement of net position. (884,408)
Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long-term liabilities were adjusted as follows:
OPUS Bank Loan (1,526,806)
Net Position of Governmental Activities (820,015)$
The accompanying notes are an integral part of these financial statements. 13 625
Rocklin Public Financing Authority
Statement of Revenues, Expenditures, and Changes in Fund Balances For the year ended June 30, 2023
(With Comparative Totals for the Year Ended June 30, 2022) 2023 2022
REVENUES
Use of money and property 39,238$ 50,527$
Total Revenues 39,238 50,527
EXPENDITURES
Debt service:
Principal 486,348 551,712
Interest and fiscal charges 38,938 50,357
Total Expenditures 525,286 602,069
Excess (Deficiency) of Revenues over Expenditures (486,048) (551,542) Net Change in Fund Balances (486,048) (551,542)
Fund Balances Beginning 2,088,247 2,639,789
Fund Balances Ending 1,602,199$ 2,088,247$
The accompanying notes are an integral part of these financial statements. 14 626
Rocklin Public Financing Authority
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities
For the year ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds (486,048)$ Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because:
Repayment of long-term debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of net position. 486,348 In governmental funds, deferred gain on early retirement of long-term debt is recognized as other finances uses.
In the government-wide statements, the deferred gain on early retirement of long-term debt is amortized over the life of the debt. The difference between other financing uses and amortization is: 221,103 Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in net position, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the net change in accrued interest from from prior year. 4,000
Change in Net Position of Governmental Activities 225,403$ The accompanying notes are an integral part of these financial statements. 15 627
NOTES TO FINANCIAL
STATEMENTS
16 628
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES On December 13, 1994, pursuant to Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, the City of Rocklin (City) authorized the formation of a joint powers authority with the former Rocklin Redevelopment Agency to be known as the Rocklin Public Financing Authority (Authority).
The Authority is governed by a Board consisting of members of the City Council. Oversight responsibility, the ability to conduct independent financial affairs, issue debt instruments, approve budgets, and otherwise influence operations and account for fiscal matters is exercised by the Authority's governing board. The Authority is a blended component unit of the City for financial reporting purposes and the accompanying basic financial statements reflect the assets, liabilities, fund balances/net position, revenues, and expenditures/expenses of the Authority only.
The basic financial statements of the Authority have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Authority's accounting policies are described below.
A. Financial Reporting Entity
As defined by GASB Statement No. 39, The Financial Reporting Entity, the Authority is not financially accountable for any other entity other than itself, nor are there any other entities for which the nature and significance of their relationship with the Authority are such that exclusion would cause the Authority’s financial statements to be misleading or incomplete.
B. Basis of Presentation, Accounting and Measurement Focus The accounts of the Authority are organized and accounted for in a governmental type debt service fund, which is considered a separate accounting entity. This debt service fund was established to account for the debt service activity of the Public Financing authority. The operations of a fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in a fund based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The Authority's government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental activities for the Authority.
These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the Authority's assets, deferred outflows of resources, liabilities, deferred inflows of resources (including capital assets, as well as infrastructure assets, and long-term liabilities), are included in the accompanying Statement of Net Position, as applicable. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment.
17 629
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for the Authority’s one major governmental fund. An accompanying schedule is presented to reconcile and explain the differences in fund balance as presented in these statements to the net position presented in the government-wide financial statements.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets, as applicable. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 60 days after year-end) are recognized when due. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.
C. Cash Deposits and Investments
For the purposes of the Statement of Net Position, “cash and investments” includes all demand, savings accounts, and certificates of deposits, or short-term investments with an original maturity of three months or less.
The City has oversight responsibility for all Authority cash and investments.
The California Government Code requires California banks and savings and loan associations to secure government cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral is considered to be held in the government’s name.
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. 18 630
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
Market approach - This approach uses prices generated for identical or similar assets or liabilities.
The most common example is an investment in a public security traded in an active exchange such as the NYSE.
Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures. Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.
Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized D. Deferred Outflows/Deferred Inflows
Deferred outflows of resources is a consumption of net position by the Authority that is applicable to a future reporting period; for example, prepaid items and deferred charges. Deferred inflows of resources is an acquisition of net position by the Authority that is applicable to a future reporting period; for example, advance collections or deferred gains from the early defeasance of long-term debt.
E. Interest Payable
In the government-wide financial statements, interest payable for long-term debt is recognized as an incurred liability. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statements when the payment is made.
F. Long-Term Debt
All long-term debt to be repaid from governmental resources is reported as liabilities in the government- wide statements. The Long-term debt consists of a bank loan from Pacific Premier Bank.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as revenue and payment of principal and interest reported as expenditures.
G. Fund Balances
In accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the Authority classifies governmental fund balances as follows:
Nonspendable
Nonspendable fund balance includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual constraints.
Restricted
Restricted fund balance includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation.
19 631
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
Committed
Committed fund balance includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority and does not lapse at year-end. C ommitted fund balances are imposed by the Authority’s governing board.
Assigned
Assigned fund balance includes fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. Fund balance may be assigned by the Authority Manager.
Unassigned
The Unassigned fund b
alance category represents fund balance which may be held for specific types of uses or stabilization purposes, but is not yet directed to be used for a specific purpose. The detail of amounts reported for each of the above defined fund balance categories is reported in the governmental funds balance.
Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the Authority considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the Authority considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Authority’s governing board has directed otherwise.
H. Net Position
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position. The Authority did not report any capital assets at the end of the year.
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Certain proceeds from debt are reported as restricted net position because their use is limited by applicable debt or other covenants.
Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position."
The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.
20 632
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the Authority's policy is to apply restricted net position first.
I. Budgets
Budgets are prepared on the modified accrual basis of accounting, in which debt principal and interest, and capital assets acquired are recorded as expenditures and depreciation is not recorded.
The Authority follows these procedures in establishing the budgetary data reflected in the financial statements:
1. By May 15, management recommends to the Board a proposed operating budget for the year commencing July 1. The operating budget includes proposed expenditures and the means of financing them.
2. The budget is legally enacted through passage of a motion during a Board meeting prior to the commencement of the new fiscal year.
3. The Board approves all budget transfers and revisions.
4. Formal budgeting is employed as a management control device during the year.
5. Budgets for the Debt Service Fund are adopted on a basis consistent with accounting principles generally accepted in the United States (GAAP).
Budgeted amounts are as originally adopted or as amended by the Board. There were no amendments recorded for the fiscal year.
J. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
K. Comparative Data
Comparative data for the prior year has been presented in the accompanying financial statements in order to provide an understanding of changes in the government's financial position and operations.
L. Implemented Accounting Pronouncements
During the year, the Authority implemented GASB Statement No. 96, Subscription-based Information Technology Arrangements. GASB Statement No. 96 is an accounting pronouncement issued by the Governmental Accounting Standards Board (GASB ) that provides guidance on how the costs and investments for subscription-based information technology arrangements (SBITAs) are accounted for and disclosed by governmental entities. This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as 21 633
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
amended. As of June 30, 2023, the Authority did not identify any material SBITAs that were required to be reported under GASB 96.
M. Upcoming Accounting and Reporting Changes
The Authority is currently analyzing its accounting practices to determine the potential impact on the financial statements of the following recent GASB Statements:
GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62, effective fiscal 2024.
This statement enhances accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. GASB 100 also requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. And, GASB 100 addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI).
GASB Statement No. 101, Compensated Absences, effective fiscal 2025.
Updates the recognition and measurement guidance for compensated absences by:
1. Aligning the recognition and measurement guidance under a unified model
2. Amending certain previously required disclosures
3. Amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability
4. Supersedes GASB 16
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2023, cash and investments were reported in the financial statements as follows:
Total
Cash and
Unrestricted Restricted Investments
Cash held with City of Rocklin 7,200$ -$ 7,200$ Bank money market accounts - 68,
193 68,193
Special assessment loan investments - 1,526,806 1,526,806 Total cash and investments 7,200$ 1,594,999$ 1,602,199$ Fair Value
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the Authority's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest, and places the Authority ahead of general creditors of the institution.
22 634
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
The market value of pledged securities must equal at least 110 percent of the Authority's cash deposits.
California law also allows institutions to secure Authority deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the Authority's total cash deposits. The Authority has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).
B. Safekeeping
Securities purchased from broker-dealers are held in third party safekeeping by the trust department of the broker-dealer or other designated third party trust in the Authority/City’s name and control, whenever possible.
C. Investment
Loans to CFD’s No. 6, No. 8 and No. 9 (special assessments) are investments of the Authority. The balance at June 30, 2023 was $1,526,806.
D. Investment Policies
Under the provisions of the Authority's investment policy, and in accordance with California Government Code, the following investments are authorized:
Category Standard
U.S. Treasuries No portfolio limit; 5 years max maturity Federal Agencies No portfolio limit; 20% max callable federal agency securities; 30% max per institution/issuer; 5 years max maturity
Supranational Obligations "AA" rated or better by a NRSRO; 30% portfolio max; 10% max per institution/issuer; 5 years max maturity; USD denominated senior unsecured unsubordinated obligations issued or
unconditionally guaranteed by IBRD, IFC, or IADB; Eligible for purchase and sale within the U.S.
Municipal Securities (CA, Other States) "A" rating category or better by a NRSRO; 30% portfolio max; 5% max per institution; 5 years max maturity
Corporate Medium Term Notes "A" rating category or better by a NRSRO; 30% portfolio max; 5% max per institution/issuer; 5 years max maturity; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S.
Mortgage-Backed Securities "AA" rating category or better by a NRSRO; 20% portfolio max; 5% max per institution/issuer; 5 years max maturity; Mortgage Pass-Through Securities, Collateralized Mortgage Obligations, or Mortgage-Backed bonds
23 635
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
Category Standard
Negotiable Certificates of Deposit (NCD) The amount invested in NCDs subject to limitations of California Government Code; Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or better by a NRSRO; or long-term obligations rated “A” or its equivalent or better by a NRSRO; 30% portfolio max; 5% max per institution/ issuer; 5 years max maturity
Time Deposits (Non-negotiable CD/TD) 20% portfolio max; Max per institution/issuer limited to maximum covered under federal insurance; 5 years max maturity; Non-negotiable time deposits FDIC or collateralized in
accordance with California Government Code and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)
Collateralized Bank Deposits No portfolio limit; deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651
Banker’s Acceptances Short-term debt obligations "A-1" rating category or better by a NRSRO or long-term debt obligations "A" rating category or better by a NRSRO; 40% portfolio max; 5% max per
institution/issuer; 180 days max maturity; Issued by prime money center banks
Commercial Paper Issued by domestic corporation with assets >$500 million and having an "A-1" long-term rating or better by a NRSRO or if the issuer has other debt obligations, having an "A" long-term rating or better by a NRSRO; or Issuer organized in the U.S. as a special purpose corporation, trust, or limitied liability company with program-wide credit enhancements and an "A-1" rating or better by a NRSRO; 25% portfolio max; 5% max per
institution/issuer; 10% max of the outstanding paper of the issuing corporation; 270 days maturity
Money Market Mutual Funds 20% portfolio max; 20% max per shares of any one Money Market Mutual Fund; Shares of beneficial interest issued by Mutual Funds and Money Market Funds; Companies shall either:
(i) Attain highest rating by two NRSROs; or (ii) Have an investment adviser registered with SEC with > 5 years
experience investing in securities as authorized by by California Government Code, Section 53601, inclusive and with AUM
>$500 million; The purchase price of shares of Mutual Funds or Money Market Funds shall not include any commission that the companies may charge
Mutual Funds 20% portfolio max; 10% max per shares of any one mutual fund; Shares of beneficial interest issued by Mutual Funds and Money Market Funds; Companies shall either: (i) Attain highest rating by two NRSROs; or (ii) Have an investment adviser registered with SEC with > 5 years experience investing in securities as authorized by California Government Code, Section 53601 and with AUM >$500 million; Mutual Fund is SEC registered and met requirements of Rule 2a-7 of the Investment Company Act of 1940; The purchase price of shares of Mutual Funds or Money Market Funds shall not include any commission that the
companies may charge
Local Agency Investment Fund (LAIF) Maximum amount permitted by State law and LAIF Local Government Investment Pools 25% portfolio max in the County Treasurer's Investment Pool Repurchase Agreements No portfolio limit; 1 year max maturity; 102% collateralized 24 636
Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
E. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2023, the Authority’s investments were in compliance with the ratings required by the Authority’s investment policy, indenture agreements and Government Code.
Concentrations of Credit Risk
The investment policy of the Authority contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2023, the Authority invested 1% of its cash in money market accounts with Pacific Premier Bank and 99% in special assessment debt.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the Authority's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools.
F. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques above. This hierarchy has three levels:
Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable.
Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.
In the table on page 22, money market accounts are valued using Level 2 inputs and special assessment bonds are valued using Level 1 inputs.
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Rocklin Public Financing Authority
Notes to the Basic Financial Statements
June 30, 2023
NOTE 3 - NONCURRENT LIABILTIIES
The Authority's noncurrent liabilities consisted of the following as of June 30, 2023:
Due
Beginning Ending Within One
Description Balance Additions Deletions Balance Year
Direct Borrowing:
Pacific Premier Bank Loan - RPFA Refunding 2,013,154$ - $ 486,348$ 1,526,806$ 497,623$ Rocklin Public Finance Authority Bank Loan
On July 1, 2017, the City, on behalf of Community Facilities Districts (CFD) 6, 8 and 9, agreed to borrow from the Rocklin Public Financing Authority (Authority) an amount necessary to refund 1999 CFD special tax bonds and pledged the special tax revenues levied in each CFD to the Authority. In the 2017 Special Tax Revenue Refunding Loan Agreement, the Authority agrees to borrow from Bank, the funds necessary to refund the 1999 CFD special tax bonds and in turn, refund the Authority’s 2003 refunding revenue bonds. The Bank loan is secured by a pledge of the revenues received by the Authority from the 2017 CFD loan payments. Bank has no remedy against the City if special taxpayers in the CFD's fail to make their payments. The loan was $5,000,077 at a fixed interest rate of 2.2% and matures on September 1, 2025. This loan was reported as City debt as required by GASB 62 and NCGA Statement 5. The refunding resulted in an economic gain of $1,989,923, which will be amortized over the life of the loan.
The annual debt service requirements on long-term debt is as follows:
Year Ending
June 30, Principal Interest Total
2024 497,623$ 28,116$ 525,739$
2025 508,181 17,052 525,233
2026 521,002 5,731 526,733
Total 1,526,806$ 50,899$ 1,577,705$
NOTE 4 - COMMITMENTS AND CONTINGENCIES
Lawsuits
The Authority could be exposed to certain matters of litigation that arise in the normal course of conducting Authority business. Management believes, based upon consultation with the Authority Attorney, that any cases, in the aggregate, would not be expected to result in a material adverse financial impact on the Authority.
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OTHER INDEPENDENT
AUDITOR’S REPORTS
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Page | 28 15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors of the
Rocklin Public Financing Authority
Rocklin, California
W
e have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Rocklin Public Financing Authority (the “ Authority”) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Authority ’s basic financial statements, and have issued our report thereon dated November 30, 2023.
I
nternal Control over Financial Reporting
M
anagement is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.
A de
ficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
O
ur consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Co
mpliance and Other Matters
As p
art of obtaining reasonable assurance about whether the Authority’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion 640
Page | 29 15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Pu
rpose of this Report
Th
e purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Nove
mber 30, 2023
Morgan Hill, California
641