If the Contractor discovers that a building to be demolished or renovated contains asbestos containing material, the Contractor shall immediately cease Work and notify the City. 5-1.15 USE OF PESTICIDES. The Contractor shall comply with all local, state and federal rules and regulations of the Department of Food and Agriculture, the Department of Health, the Department of Industrial Relations and all other agencies which govern the use of pesticides required in the performance of the Work.
Pesticides shall include but shall not be limited to herbicides, insecticides, fungicides, rodenticides, germicides, nematocides, bactericides, inhibitors, fumigants, defoliants, desiccants, soil sterilants, and repellents.
Any substance or mixture of substances intended for preventing, repelling, mitigating, or destroying weed, insects, diseases, rodents, or nematodes and any substance or mixture of substances intended for use as a plant regulator, defoliant or desiccant shall be considered as pesticide.
5-1.16 SOUND AND LIGHT CONTROL REQUIREMENTS. The
Contractor shall comply with all local sound control, light control, and noise level rules, regulations and ordinances which apply to any Work performed pursuant to the Contract. Work shall not begin before 7 a.m. nor occur after 7 p.m., unless otherwise permitted by the City.
Each internal combustion engine, used for any purpose on the Work or related to the Work, shall be equipped with a muffler, in good working order, of a type recommended by the manufacturer. No internal combustion engine shall be operated on the project without said GC - 5:21
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] muffler.
5-1.17 WEIGHT LIMITATIONS. Unless expressly permitted elsewhere in the Contract Documents, the Contractor shall not operate construction equipment or vehicles of any kind which, laden or unladen, exceed the maximum weight limits set forth in Division 15 of the Vehicle Code over completed or existing base, surfacing, pavement or structures. 5-1.18 ENVIRONMENTAL CLEARANCES; MITIGATION
MONITORING PROGRAMS; AND REGULATORY AGENCY PERMIT
REQUIREMENTS. The Department will obtain all environmental clearances and other authorizations necessary for this project as set forth in the Contract Documents. The Contractor shall comply with the provisions, including giving notices during construction when required, of said authorizations. In the event the obtaining of said authorizations delays completion of all or any portion of the Work, an extension of time determined pursuant to the provisions in Section 6-1.08, “Liquidated Damages,” of these General Conditions will be granted.
Contractor shall comply with: (1) all mitigation identified in the mitigation monitoring program (attached to and adopted as a component of the mitigated negative declaration or Environmental Impact Report) to mitigate impacts to protected natural resources; and (2) all related permit requirements issued by the regulatory agencies authorizing the project. Contractor shall defend, indemnify, and save and hold harmless the City, its officers, agents, employees, and volunteers from any fines, claims, suits, actions or regulatory sanctions of every name, kind and description brought forth, or on account of, damage to protected natural resources from or arising out of Contractor’s negligence or willful misconduct in the performance of this Agreement. 5-1.19 PERMITS AND LICENSES. The Contractor acknowledges and agrees that, prior to the submission of its bid for the Work, it fully familiarized itself with the GC - 5:22
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] requirements of all applicable federal, state, county and municipal laws, codes, rules, and regulations, as well as the conditions of any required licenses and permits.
The Contractor shall procure all permits and licenses, including any applicable building permits (except those procured or to be procured by the City which are listed elsewhere in the Contract Documents), in coordination with the Director, pay all charges and fees, and give all notices necessary and incident to the due and lawful prosecution of the Work. Contractor shall be responsible for applying, paying all fees, and coordination for obtaining all permits for completion of the Work. All permits and licenses shall be obtained in sufficient time to prevent delays to the Work. Contractor will apply to the City for reimbursement for such permits costs.
Accordingly, Contractor should not include the anticipated costs for permits in its bid, as the necessary permit costs will be reimbursed by the City.
The California Environmental Quality Act (Public Resources Code, Section 21000 to 21177) may be applicable to permits, licenses and other authorizations which the Contractor must obtain from State or local agencies in connection with performing the Work. The Contractor shall comply with the provisions of that Act in obtaining such permits, licenses and other authorizations, and all permits, licenses and other authorizations shall be obtained in sufficient time to prevent delays to the Work.
The Contractor shall maintain the applicable Contractor’s license as identified in the Notice to Contractors and City business license for the duration of the Work. 5-1.20 WATER POLLUTION. The Contractor shall comply with all water pollution control rules, regulations, ordinances and statutes which apply to any Work performed pursuant to the Contract, including any water pollution control rules, regulations, and statutes, specified by the most current State of California NPDES General Permit for Stormwater GC - 5:23
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Discharges Associated with Construction Activity.
The Contractor shall take all necessary precaution to protect streams, vernal pools, ponds, reservoirs, and lakes from pollution with fuels, oils, bitumen, calcium chloride, and other harmful materials as consistent with the law. Also, the Contractor shall conduct and schedule operations so as to avoid discharging pollutants, such as but not limited to: sediment and silt to the storm drain system. The storm drain system consists of all facilities that are designed to convey stormwater to the Waters of the State as defined in the California Water Code. The storm drain system includes, but is not limited to, all streets, gutters, drain inlets, roadside ditches, streams, vernal pools, ponds, and lakes. Care shall be exercised to preserve roadside vegetation beyond the limits of construction.
5-1.21 PROTECTION AND USE OF PROPERTY. The Contractor shall be responsible for and provide and maintain all proper temporary walkways, covered walkways, barriers, roads, guards, railings, lights, warning signs, and take precaution at all times to avoid injury or damage to any person or any property, and upon completion of the Work, or at other times as directed, restore Premises and adjacent property to a proper condition. In the event of such injury or damage, Contractor shall report such injury and damage to City within forty-eight (48) hours of occurrence.
The Contractor shall protect adjoining property and nearby buildings, including City buildings, City roads, and public streets or roads, from dust, dirt, debris, or the nuisance arising out of the Contractor's operations or storage practices, and, if ordered by the Director, the Contractor shall provide and Install suitable safeguards, approved by the Director, to protect such objects from damage. If such objects are damaged by reason of the Contractor's operations, they shall be replaced or restored at the Contractor's expense.
GC - 5:24
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] If the Contractor damages any buildings, roads, utilities, or other property which belong to the City, or any Department or agency thereof, then the Director, at his or her option, may retain from the money due under the Contract an amount sufficient to insure repair of the damage.
The Director may make or cause to be made such temporary repairs as are necessary to restore to service any such damaged facility. The cost of such repairs shall be borne by the Contractor and may be deducted from any moneys due or to become due the Contractor under the Contract.
5-1.22 RESPONSIBILITY FOR DAMAGE AND INDEMNIFICATION.
The City of Roseville, its officers, agents, employees, and volunteers, including but not limited to the Director and his or her designee, shall not be answerable or accountable in any manner: for any loss or damage that may happen to the Work or any part thereof; for any loss or damage to any of the materials or other things used or employed in performing the Work; for injury to or death of any person, either workers or the public; or for damage to property from any cause which might have been prevented by the Contractor, its workers, or anyone employed by the Contractor or the Contractor's Subcontractors.
The Contractor shall be responsible for any liability imposed by law and for injuries to, or death of, any person including, but not limited to, workers and the public, or damage to property resulting from defects or obstructions, or from any cause whatsoever during the progress of the Work or at any time before its completion and final Acceptance.
To the fullest extent allowed by law, the Contractor shall defend (through counsel acceptable to the City), indemnify, and save and hold harmless the City, and its respective officers, agents, Subcontractors, employees, and volunteers, and the successors and assigns of GC - 5:25
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] any of them, (hereinafter referred to as “Indemnitees”) from and against all claims, demands, liability, suits, actions, costs or expenses for any and all loss or damage, including but not limited to, personal injury, property damage, or economic loss, arising out of or resulting from allegations of (1) Contractor’s use of the City’s property or any activities or Work performed hereunder by the Contractor; (2) the Contractor’s performance of the Work under the Agreement; or (3) the Contractor’s breach of any provision of the Agreement. The duty of the Contractor to indemnify and save harmless includes the duties to defend as set forth in Civil Code Section 2778. The only exception to these provisions is that the Contractor’s obligations under this section will not apply to the extent that the claims, demands, liability, suits, actions, costs or expenses are caused by Indemnitees’ active negligence, willful misconduct, criminal acts, or for defects in design furnished by the Indemnitees, misconduct, criminal acts, or for defects in design furnished by the Indemnitees.
The Contractor waives any and all rights to any type of express or implied indemnity against the City, its officers, agents, employees, or volunteers.
The Contractor’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Contract for the full period of time allowed by law. The defense and indemnity obligations of this Contract are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Contract. The parties intend that the defense and indemnity obligations in this Contract shall be broadly construed.
Any person, firm or corporation that Contractor authorizes to Work on the City’s property including Subcontractors, shall be deemed to be an agent of the Contractor for purposes herein, shall be subject to all the applicable terms herein, and shall be within the scope of the Contractor’s indemnity obligation described herein.
GC - 5:26
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] In addition to any remedy authorized by law, so much of the money due the Contractor under and by virtue of the Contract as shall be considered necessary by the Department may be retained by the City until disposition has been made of such suits or claims for damages.
The retention of money due the Contractor shall be subject to the following:
A. The City will give the Contractor thirty (30) Days’ notice of its intention to retain funds from any partial payment which may become due to the Contractor prior to Acceptance of the Contract. Retention of funds from any payment made after Acceptance of the Contract may be made without such prior notice to the Contractor.
B. No retention of additional amounts out of partial payments will be made if the amount to be retained does not exceed the amount being withheld from partial payments pursuant to Section 7-1.07, “Progress Payments,” of these General Conditions.
C. If the City has retained funds and it is subsequently determined that the City is not entitled to be indemnified and saved harmless by the Contractor in connection with matter for which such retention was made, the Department shall be liable for interest on the amount retained at the legal rate of interest for the period of such retention. 5-1.23 INSURANCE COVERAGE.
A. Evidence of Maintenance Required. The Contractor shall, at its expense, procure and at all times maintain in full force and effect at a minimum the insurance required by this section on all of its operations; and the Contractor shall not allow any Subcontractor to commence work until similar insurance required of the Subcontractor has been obtained and filed. An original Certificate of Insurance, and copies of all required endorsements, all in a form approved by the Risk Manager, evidencing all required coverage or policies shall be filed after the award of the bid and prior to approval of the Contract by the City Council. Contractor shall GC - 5:27
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] provide ten (10) days prior written notice to the City of any reduction of coverage limits or cancellation of the coverage or policies shall be given to the City of Roseville as Certificate holder.
B. Qualifying Insurers. With the exception of the State Compensation Insurance Fund, all required insurance policies shall be issued by companies acceptable to the City and licensed to do business in the State of California and who hold a current policy holders alphabetic and financial size category rating of not less than AVII according to the most recent issue of Best's Insurance Reports.
C. Insurance Required.
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations with limits of no less than Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage for projects under One Million Dollars ($1,000,000) and limits of no less than Five Million Dollars ($5,000,000) per occurrence for bodily injury, personal injury and property damage for projects over One Million Dollars ($1,000,000). If a general aggregate limit applies, either the aggregate limit shall apply separately to this project or the general aggregate limit shall be twice the required occurrence limit.
The Commercial General Liability insurance shall include the following, copies of which shall be provided:
a. Inclusion of the City of Roseville, and its officers, agents, employees, and volunteers, as additional insureds (except for workers’ compensation) as respects services or operations under the Contract. The additional insured endorsement for the general liability policy shall be at least as broad as the ISO CG 2010 10 01 combined with ISO CGL GC - 5:28
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Endorsement CG 2037 10 01. Any other endorsement must be approved in writing by the City.
Endorsements must include coverage for on-going and completed operations, which coverage shall be maintained for four (4) years following completion of the Project. Endorsements shall cover the City of Roseville, its officers, agents, employees, and volunteers. b. The insurance shall provide coverage for claims by one insured against another insured and the policies shall not contain any cross-suits exclusions, crossliability exclusions, or insured versus insured exclusions. The policies shall not contain any classification exclusions purporting to deny coverage for any work to be performed by Contractor or any of its Subcontractors.
c. Stipulation that the insurance is primary and noncontributory, as evidenced by a separate endorsement (CG 20 01 04 13 or an equivalent) or section of the policy, and that neither the City nor its insurers will be called upon to contribute to a loss. d. Such insurance shall specifically cover the contractual liability of the Contractor.
e. Any available insurance proceeds in excess of the specified minimum insurance coverage requirements and limits shall be available to the additional insureds. Furthermore, the requirements for coverage and limits shall be: (1) the minimum coverage and limits specified in this Agreement; or (2) the full coverage and maximum limits of any insurance proceeds available to the named insureds, whichever is greater. f. Waiver of subrogation endorsement.
g. The Contractor shall furnish a certificate for the period covered.
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and Code 9 GC - 5:29
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] (non-owned), with limits of no less than One Million Dollars ($1,000,000) per accident for bodily injury and property damage.
3. Workers' Compensation: In accordance with the provisions of the California Labor Code, Contractor is required to be insured against liability for Workers' Compensation or to undertake self-insurance. Statutory Workers' Compensation and Employers' Liability of at least One Million Dollars ($1,000,000) shall cover all Contractors staff while performing any work incidental to the performance or this Agreement.
4. Professional Liability: Professional Liability (Errors and Omission) Insurance appropriate to Contractor’s profession, with a limit of liability not less than One Million Dollars ($1,000,000) per occurrence or claim and Two Million Dollars ($2,000,000) aggregate to cover all design and engineering services rendered by Contractor pursuant to the Agreement. Coverage must commence from the first day that Contractor or any of its Subcontractors provided any design or engineering services in connection with the Project.
5. Builder’s Risk/Course of Construction Insurance (If Required by Risk Management): The Contractor shall be responsible for all loss, damage or destruction whatsoever to the work called for by this Contract until the approval of a Notice of Completion or acceptance of the Work if no Notice of Completion is to be recorded.
The Contractor shall secure “All Risk” type of builder's Risk Insurance of the type covering one hundred percent (100%) of the value of the work performed under this Contract (the value is presumed to be the Contract amount unless otherwise stated in Supplemental Conditions) and all materials, equipment, or other items to be incorporated therein while the same are located at the construction site, a bonded warehouse, or its place of manufacture. At any time, the policy shall cover the value of the work completed. The policy shall cover hazards GC - 5:30
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] including the losses due to fire, explosion, hail, rain, lightning, flood (separate insurance as needed), vandalism, malicious mischief, wind, collapse, aircraft, and smoke.
The policies providing such insurance shall name the City as a loss payee as its respective interests may appear, and certified copies of such policies shall be filed with the City. The maximum deductible allowable under the Builder's All Risk policy shall be five percent (5%) of the Contract amount.
Builder's Risk Insurance is not required for coverage of losses in excess of five percent (5%) of the Contract amount for damages resulting from earthquake in excess of a magnitude of
3.5 on the Richter scale, or tidal waves. Coverage in the amount of five percent (5%) of the Contract amount for such losses is required.
6. Pollution Coverage: Contractor shall procure pollution liability coverage or other insurance covering claims for bodily injury or property damage arising out of the abatement, removal, storage, transportation, or other exposure to hazardous materials or pollutants, in limits not less than Two Million Dollars ($2,000,000). Contractor shall add the City and all parties required to be indemnified by Contractor as additional insured on all pollution liability policies.
7. Higher Coverage Limits: If Contractor maintains higher coverage limits than the amounts shown above, then the City requires and shall be entitled to coverage for the higher coverage limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
8. Claims Made Coverage: Liability insurance coverage may not be written on a “claims made” or modified occurrence basis. The Certificate of Insurance must clearly provide that the coverage is on an “occurrence” basis.
GC - 5:31
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] 5-1.24 OTHER INSURANCE PROVISIONS.
A. The requirements of the Standard Specifications as to types and limits of insurance coverage to be maintained by the Contractor, and any approval of insurance by the City, are not intended to, and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to the Contract, including, but not limited to, the provisions concerning indemnification, nor preclude the City from taking any other action available to it under any other provision of the Contract or law.
B. The City acknowledges that some insurance requirements contained in these Standard Specifications may be fulfilled by self-insurance on the part of the Contractor.
However, this shall not in any way limit liabilities assumed by Contractor under the Contract.
Any self-insurance must be approved in writing by the City, in its sole discretion and shall not reduce the limits of liability. Any deductibles or self-insured retentions (“SIR”) must be declared on the certificate of insurance and approved by City in writing. Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or City. City reserves the right to obtain a full certified copy of any insurance policy and endorsements. The failure to exercise this right shall not constitute a waiver of such right.
C. The Contractor agrees to include in its contracts with all subcontractors the same requirements and provisions of this Contract, including the indemnity and insurance requirements, to the extent they apply to the scope of the subcontractor’s work. Furthermore, the Contractor shall require its subcontractors to agree to be bound to the Contractor and the City in the same manner and to the same extent as the Contractor is bound to the City under this Contract. Additionally, the Contractor shall obligate its subcontractors to comply with these GC - 5:32
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] same provisions with respect to any tertiary subcontractor, regardless of tier. A copy of the City’s indemnity and insurance provisions will be furnished to the subcontractor or tertiary subcontractor upon request. Alternatively, the Contractor may insure subcontractor(s) under its own policy.
D. The City, its officers, agents, employees, and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Insurance Code Section 11580.04.
E. The limits of insurance required in this Contract may be satisfied by a combination of primary and excess insurance. Any excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of the City (if agreed to in a written contract) before the City’s own insurance shall be called upon to protect it as a named insured.
F. The insurance procured by Contractor shall be subject to the approval of the City, but any acceptance of insurance certificates by the City shall in no way limit or relieve Contractor of its duties and responsibilities under the Agreement.
G. Contractor shall be responsible for all premiums, deductibles, and selfinsured retention applicable to the insurance it is required to procure under the Contract. All deductibles or self-insured retentions over five hundred thousand dollars ($500,000) must be approved by the City, in writing. Contractor shall be responsible for all deductibles, self-insured GC - 5:33
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] retention payments, and/or increased premiums incurred if the City’s policies of insurance are forced to cover damages or respond to claims for which Contractor or its Subcontractors were obligated to provide insurance under the Contract.
H. Failure of the City to enforce in a timely manner any of the requirements of these insurance provisions shall not act as a waiver to enforcement of any of these provisions at a later date.
I. Contractor’s indemnity obligations shall not be limited by these insurance provisions and shall survive the expiration of the Contract and the insurance provisions of the Contract shall likewise not be limited by the indemnity provisions of the Contract.
J. THE CITY RESERVES THE RIGHT TO WITHHOLD ANY
PROGRESS PAYMENTS TO THE CONTRACTOR IN THE EVENT OF NONCOMPLIANCE WITH ANY INSURANCE REQUIREMENTS.
5-1.25 THIRD PARTY BENEFICIARY. No provisions in the Contract Documents shall in any way inure to the benefit any third party (including the public at large or any member thereof) so as to constitute such person a third party beneficiary of the Contract, or of any term or condition or other provision of the Contract or otherwise give rise to any cause of action in any person not a party to the Agreement, except as expressly provided elsewhere in the Contract Documents.
5-1.26 COORDINATION AND ACCESS. The Contractor acknowledges that the City may award, or has already awarded, other construction contracts for additional work or may perform additional work with its own forces and that such work may affect the Work under this Agreement. Additionally, the Contractor acknowledges that the State and other public and private agencies may be granted a right-of-entry by the City for the purpose of constructing GC - 5:34
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] facilities within and adjacent to the Work Site. It is the obligation of the Contractor to coordinate its Work with the work of others working within or adjacent to the City’s property.
During performance of its Work, the Contractor shall not have exclusive access to or use of the work areas. The City may also require that certain facilities and areas be used concurrently by the Contractor and by other contractors working in the area. When two (2) or more contractors are employed on related or adjacent City work, each shall conduct its operations in such a manner as not to cause any unnecessary delay or hindrance to the other.
Each contractor shall be responsible to the other for all damage to any work, to persons or property caused to the other by its operations, and for loss caused the other due to any unnecessary delays or failure to finish the work within the time specified for completion.
If any party of the Contractor’s Work depends on the work of any other contractor and/or the City for proper execution and/or results, the Contractor shall promptly notify the City of any discrepancies and/or defects in said other work that would render its work unsuitable for proper execution and/or results prior to proceeding with the Contractor’s own Work. If it becomes necessary, the City will resolve coordination and access problems.
The Contractor and its representative in charge of the Work shall familiarize themselves with the City’s property and Work Site, and adjacent surroundings in the vicinity of said Wok, and any private or public operations on adjoining properties. 5-1.27 OCCUPANCY BY THE DEPARTMENT PRIOR TO
ACCEPTANCE. The City may at any time notify the Contractor in writing that it intends to take Beneficial Occupancy of any portion of the Work even though the Work may not be substantially complete. Unless the reason for the City’s taking Beneficial Occupancy is that the Contractor has not completed the Work (or portions thereof) in accordance with the Contract GC - 5:35
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Time, the City’s Beneficial Occupancy shall relieve the Contractor from its responsibility for maintenance, loss or damage to that portion of the Work for which the City has taken Beneficial Occupancy other than that resulting from the Contractor’s act or omission, negligence, willful misconduct or breach of warranty.
Should the Work (or portion thereof) not be completed in accordance with the Construction Schedule within the Contract Time (as adjusted under the terms of the Contract Documents), the City shall have the right, but not the obligation, to take Beneficial Occupancy of the Work. In such event, the Contractor shall not be entitled to any additional compensation on account of said occupancy by the City, nor shall the Contractor be relieved of any of its responsibilities under the Contract Documents, including, without limitation, Contractor’s obligation to complete the Work in accordance with the Construction Schedule.
Beneficial Occupancy shall not be deemed an Acceptance by the City either of the Work or of any portion thereof, nor will it relieve the Contractor of full responsibility for correcting defective Work or materials found at any time before the formal written Acceptance of the entire Contract by the Director or during the full warranty period after such Acceptance, as provided in Section 7-1.12, “Warranty,” of these General Conditions.
The City’s Beneficial Occupancy shall not relieve the Contractor of its responsibility to maintain all insurance and bonds required under the Contract Documents until the entire project is accepted by the City.
5-1.28 RIGHT TO OPERATE UNSATISFACTORY FACILITIES AND
EQUIPMENT. If, after Installation, the operation or use of the facilities or equipment to be furnished under this Contract proves to be unsatisfactory to the Director, the City shall have the right to operate and use such facilities or equipment until they can, without damage to the City, GC - 5:36
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] be taken out of service for correction or replacement. Such period of use of the defective facilities or equipment, pending correction or replacement, shall in no way decrease the warranty period required for the acceptable corrected or replaced facilities or equipment. 5-1.29 CONTRACTOR'S RESPONSIBILITY FOR THE WORK. Except as otherwise provided herein, the Contractor shall have the charge and care of the Work and shall bear the risk of injury or damage to any part of the Work by the action of the elements or from any other cause whether arising from the execution or from the nonexecution of the Work until the Acceptance of the Contract by the Director. The Contractor shall rebuild, repair, restore, and make good all injuries or damages to any portion of the Work occasioned by any cause before its completion and Acceptance, and shall bear the expense thereof. In case of suspension of Work from any cause whatever, the Contractor shall be responsible for the Work and it shall also be responsible for all materials, and shall properly store them if necessary, and shall provide suitable drainage and erect temporary structures where necessary.
The Contractor will be relieved of responsibility for any injury or damage to the Work caused by the following:
A. An earthquake in excess of a magnitude of 3.5 on the Richter Scale or a tidal wave, when the effect of such has been proclaimed a disaster or state of emergency by the Governor of the State of California or by the President of the United States, or was of such magnitude at the site of the Work as to have been sufficient to have caused a proclamation of disaster or state of emergency, had it occurred in a populated area.
B. Occupancy and use by the Department or the public prior to the completion of the entire project.
C. Acts of the Federal Government or the public enemy.
GC - 5:37
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] 5-1.30 RESPONSIBILITY FOR UTILITIES. The Contractor shall be responsible at its own cost for any and all Work, expense or special precautions caused or required by the existence or proximity of utilities encountered in performing the Work, including without limitation, repair of any or all damage and all hand or exploratory excavation required.
The Contractor is cautioned that such utilities may include communication cables or electrical cables which may be high voltage, and when working or excavating in the vicinity of such cables, or the ducts enclosing such cables, the Contractor shall undertake at its own cost any special precautions required. Suitable warning signs, barricades, and safety devices shall be erected as necessary or required.
However, if during the course of the Work the Contractor encounters utility Installations which are not shown or indicated in the Contract Documents or which are found in a location substantially different from that shown, and such utilities are not reasonably apparent from visual examination, then the Contractor shall promptly notify the Director in writing. Where necessary for the Work of the Contract, the Director shall issue a written order to the Contractor to make such adjustments, rearrangement, repair, removal, alteration, or special handling of such utility, including repair of the damaged utility. The Contractor shall perform the Work described in such written order, and compensation therefor will be made in accordance with Section 3 of these General Conditions relating to changes in the Work. Except for the items of cost specified in said Section 3, the Contractor shall receive no compensation for any other cost, damage, delay, interference, or hindrance to him or her due to the presence of such utility. If the Contractor fails to give the notice specified above and thereafter acts without instructions for the Director, then the Contractor shall be liable for any or subsequent to discovery thereof, and the Contractor shall repair and make good such damage at its own cost.
GC - 5:38
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] The precise location of underground facilities can only be determined by careful probing or hand digging in compliance with Article 6 of the Cal/OSHA Construction Safety Orders which states in part:
“Prior to opening an excavation, effort shall be made to determine whether underground installations, i.e., sewer, water, fuel, electric lines, etc., will be encountered, and if so, where such underground installations are located. When the excavation approaches the approximate location of such an installation, the exact location shall be determined by careful probing or hand digging, and, when it is uncovered, adequate protection shall be provided for the existing installation.” The location of known existing utilities and pipelines are shown on the Contract Drawings in their approximate locations. Some of the locations include multiple conduits. The Contractor shall exercise care in avoiding damage to those facilities which are to remain in service subsequent to the construction of the particular new facility involved and the Contractor will be held responsible for any repairs if damaged. The Contractor shall also exercise care in maintaining those pipes and facilities required for continuing operation of the existing facilities until such time as they can be abandoned. There is no guarantee that all utilities or obstructions are shown on the Contract Drawings or that the locations indicated are accurate.
The Contractor shall exercise extreme caution in working in the area adjacent to the existing pipelines and utility services. It is essential that all the existing facilities be maintained in service. Construction of the connections between the existing facilities and the new facilities shall be at times and during periods acceptable to the City. The Contractor shall advise the Director in writing of its proposed Construction Schedule for these connections at least fortyeight (48) hours in advance.
GC - 5:39
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] The Contractor shall uncover all piping and conduits, to a point one foot (1') below the pipe, where crossings, interferences, or connections are shown on the Contract Drawings, prior to trenching or excavating for any pipe or structures, to determine actual elevations. New pipelines shall be laid to such grade as to clear all existing facilities which are to remain in service. If the Contractor does not expose all required utilities, it shall not be entitled to additional compensation for Work necessary to avoid interferences nor for repair to damaged utilities. Excavations around underground electrical ducts and conduits shall be performed using extreme caution to prevent injury or damage to workers and to the electrical ducts or conduits. 5-1.31 PROPERTY RIGHTS IN MATERIALS. Nothing in the Contract shall be construed as vesting in the Contractor any right of property in the materials used after they have been attached or affixed to the Work or soil or after partial payment has been made as provided in Section 7-1.07, “Progress Payments,” of these General Conditions for material delivered on the ground or stored subject to or under the control of the City and unused. All such material shall become the property of the City upon being so attached or affixed or upon payment for materials delivered on the ground or stored subject to or under the control of the City and unused, as provided in said Section 7-1.07.
5-1.32 COURT ORDERED DELAY. If, pursuant to court order, the Department temporarily suspends performance of all or any portion of the Work, an extension of time determined pursuant to the provisions in Section 6-1.08, “Liquidated Damages,” of these General Conditions will be granted.
5-1.33 NO PERSONAL LIABILITY. Neither the Director, nor any other officer or authorized employee of the City, shall be personally responsible for any liability arising under or by virtue of the Contract.
GC - 5:40
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] 5-1.34 RIGHTS IN LAND AND IMPROVEMENTS. The Contractor shall make no arrangements with any person or entity to permit occupancy or use of any land, structure or building within the limits of the Work, for any purpose whatsoever, either with or without compensation, in conflict with any agreement between the City and any third party owner, former owner, or tenant of such land, structure or buildings. The Contractor shall not occupy City-owned property outside the limit of the Work shown on the Contract Drawings unless it obtains prior approval.
5-1.35 ANTITRUST CLAIMS. The Contractor’s attention is directed to the following provision of Public Contract Code Section 7103.5(b), which is applicable to the Contractor and its Subcontractors:
“ In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the contractor or subcontractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C.
Sec. 15) or under the Cartwright Act (Chapter 2 [commencing with Section 16700] of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract.
This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgement by the parties.”
5-1.36 RIGHTS TO DRAWINGS, TECHNICAL DATA PATENTS. Shop GC - 5:41
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Drawings and Working Drawings submitted to the City by the Contractor, Subcontractor or any lower tier Subcontractor pursuant to the Agreement, are the property of the City and the City may use, and disclose in any manner and for any purpose, Shop Drawings and Working Drawings delivered under the Contract.
Technical Data including manuals or instructional materials, computer or microprocessor software which are delivered or submitted to the City by the Contractor, Subcontractor, or any lower tier Subcontract pursuant to the Contract are the property of the City, and the City may use or disclose same in any manner and for any purpose.
The Contractor shall assume all costs arising from the use of patented materials, equipment, devices, or processes used on or incorporated in the Work, and shall defend, indemnify and save and hold harmless the City, and its duly authorized representatives, from all suits at law, or in equity, and actions of every nature for, or on account of the use of any patented materials, equipment, devices or processes. In case some materials, equipment, devices or processes are held to constitute an infringement and their use enjoined, the Contractor, at its expense, shall:
1. Secure for the City the right to continue using said materials, equipment, devices or processes by suspension of the injunction or by procuring a license or licenses; or
2. Replace such materials, equipment, devices, processes; or
3. Modify them so that they become non-infringing or remove the enjoined materials, equipment, devices or processes and refund the sums paid therefor without prejudice to any other rights of the City.
5-1.37 PAYMENT OF TAXES. Contractor shall pay all taxes and duties applicable to and assessable against any Work, equipment, materials, services, processes, and GC - 5:42
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] operations incidental to or involved in the Agreement, including but not limited to, retail sales and use, transportation, export, import, business, and special taxes. The Contractor is responsible for ascertaining and acquainting itself with such taxes and making all necessary arrangements to pay them. The Contractor will maintain records that are auditable records, and these records shall be subject to the City’s review to verify that Contractor’s tax payments are current at all times.
The Contract Price paid for the Work shall include full compensation for all taxes which the Contractor is required to pay, whether imposed by Federal, State or local government, including, without being limited to, Federal excise tax. No tax exemption certificate nor any document designed to exempt the Contractor from payment of any tax will be furnished to the Contractor by the Department, as to any tax on labor, services, materials, transportation, or any other items furnished pursuant to the Contract.
The Contractor shall withhold and pay any and all sales and use taxes, withholding taxes, whether Federal, State, or local, Social Security taxes, State Unemployment Insurance charges and all other taxes which are now or hereafter may be required to be paid or withheld under any laws.
5-1.38 GRATUITIES AND CONFLICT OF INTEREST. The Contractor shall not offer or provide gratuities in the form of gifts, entertainment, loans, meals, rewards, and/or services to representatives of the City, including but not limited to, officers, employees, agents, Engineering Service Consultants, Consulting Engineers and Architects, Inspectors and/or Testing Agencies retained by the City. If it is found that the Contractor has violated this provision, the Contract may be subject to termination for default as defined elsewhere in these General Conditions.
GC - 5:43
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] During the term of the Contract and until the final payment has been made to the Contractor, the Contractor shall not employ or compensate in any manner whatsoever, the City’s officers, employees and authorized representatives, agents, and any Engineering Service Consultants, Consulting Engineers and Architects, Inspectors, and/or Testing Agencies retained by the City. Any exception to the employment or compensation to any of the above named parties must be made in writing by the City. If the Contractor offers or provides employment or compensation to those named above during the term of the Contract, the Contract may be subject to termination for default.
5-1.39 COOPERATION. Should construction be under way by City forces or other forces or by other Contractors within or adjacent to the limits of the Work or should Work of any other nature be under way by such forces within or adjacent to said limits, the Contractor shall cooperate with all such forces to the end that any delay, interference or hindrance to their Work will be avoided. The right is reserved to perform other or additional Work at or near the site at any time, by the use of such forces.
5-1.40 DIGGING TRENCHES OR OTHER EXCAVATIONS. In the event any work involves digging trenches or other excavations that extend deeper than four feet (4’) below the surface, City and Contractor shall comply with the following:
A. The Contractor shall promptly, and before the following conditions are disturbed, notify City in writing of any:
1. Material that the Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law.
GC - 5:44
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019]
2. Subsurface or latent physical conditions at the site differing from those made available to Contractor for inspection as provided in the project proposal.
3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in Work of the character provided for in the Contract.
B. The City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the Contractor’s cost of, or the time required for, performance of any part of the Work shall issue a Change Order under the procedures described in the Contract.
C. In the event that a dispute arises between the City and the Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the Work, the Contractor shall not be excused from any scheduled completion date provided for by the Contract, but shall proceed with all work to be performed under the Contract. The Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties. However, no claim of the Contractor under this clause shall be allowed unless the Contractor has given the notice required by this Section. No claim by the Contractor for an equitable adjustment hereunder shall be allowed if asserted after final payment under this Contract. 5-1.41 CONTRACTOR REGISTRATION. No contractor or subcontractor may work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. During the performance of this Contract, the Contractor and its subcontractors shall have a continuing legal obligation to maintain current GC - 5:45
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] registration with the Department of Industrial Relations. The Contractor is hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
5-1.42 CITY OF ROSEVILLE ENCROACHMENT PERMITS AND
RIGHTS-OF-WAY. The Contractor need not obtain a separate encroachment permit from the City prior to construction within street rights-of-way or other City rights-of-way. Execution of the Contract by the City shall be deemed an encroachment permit for work required by the Contract within rights-of-way. All work shall conform to the rules and regulations of encroachment permits and shall be subject to the inspection and approval of the Director and City Engineer.
To the extent indicated in the Contract Drawings, the City will provide the rights-of-way over private lands or the site to enable the Contractor to perform its work. The Contractor shall be solely responsible for securing any additional rights-of-way desired by the Contractor. The City will not be a party to nor assume any liability for any separate agreements reached between the Contractor and any third parties with respect to these additional rights-of-way. The Contractor shall procure evidence that agreements are in place with said third parties before the Contractor uses those areas covered by the agreements. Any damage to such private lands caused by the Contractor’s operations shall be the sole responsibility of the Contractor.
GC - 6:1
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] SECTION 6
PROSECUTION AND PROGRESS
6-1.01 SUBLETTING AND SUBCONTRACTING. The Contractor shall be responsible for all Work performed under the Contract. The Contractor shall give its personal attention to the fulfillment of the Contract and shall keep the Work under its control. Nothing in the Contract Documents shall create any contractual relationship between the City and any Subcontractor. The Contractor is fully responsible to the City for the acts and omissions of its Subcontractors of any tier. When any Subcontractor fails to prosecute a portion of the Work in a manner satisfactory to the Director, that Subcontractor shall not again be employed on the Work.
Although the sections of the Contract may be arranged according to various trades, or general grouping of the Work, the Contractor is not obligated to sublet the Work in such manner. The Director will not arbitrate disputes among Subcontractors or between Contractor and one or more Subcontractors concerning responsibility for performing any part of the Work.
The on-site production of materials produced by other than the Contractor’s own forces shall be considered as subcontracted. The erection, establishment or reopening of on-site plants for production of materials and the operation thereof in the production of materials for use on the Work shall conform to the requirements relating to labor set forth in the Contract Documents.
The Contractor shall also be responsible for coordinating the Work performed by Subcontractors and Suppliers.
The Contractor shall not substitute any person as Subcontractor in place of a Subcontractor listed on its bid proposal without the written approval of the Director.
Substitutions must be in accordance with the provisions of the “Subletting and Subcontracting GC - 6:2
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Fair Practices Act” beginning with Public Contract Code Section 4100. Violations of this Act by the Contractor may subject it to penalties which may include cancellation of Contract, Assessment of ten percent (10%) of the Subcontractor's bid, and disciplinary action by the Contractors State License Board.
The Contractor shall pay any Subcontractors approved by the City for work that has been satisfactorily performed no later than seven (7) Days from the date of Contractor’s receipt of progress payments by the City. Within seven (7) Days after receipt from the City of funds attributable to work performed by a Subcontractor, Contractor shall release any retainage payments withheld to the Subcontractor. In the event Contractor does not make progress payments or release retention to Subcontractors in accordance with the time period specified herein, Contractor may be subject to prompt payment penalties per statute. 6-1.02 ASSIGNMENT. The performance of this Contract may not be assigned, except upon the written consent of the City Council of the City of Roseville. Consent will not be given to any proposed assignment which would relieve the original Contractor or its surety of their responsibilities under the Contract nor will the City consent to any assignment of a part of the Work under the Contract.
The Contractor may assign moneys due or to become due to it under the Contract and such assignment will be recognized by the City, if given proper notice thereof, to the extent permitted by law, but any assignment of moneys shall be subject to all proper set-offs in favor of the City and to all deductions provided for in the Contract and particularly all money withheld, whether assigned or not, shall be subject to being used by the City for the completion of the Work in the event that the Contractor should be in default therein. 6-1.03 BEGINNING OF WORK. After the execution of the Contract by both GC - 6:3
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] parties, the City will issue the Notice to Proceed upon its determination that it is appropriate for the Contract Time to commence.
The Contractor shall begin Work within fifteen (15) Days after receiving the Notice to Proceed from the Director, subject to the requirements stated elsewhere in the Contract Documents regarding, among other things, the submittal of Baseline Schedule, and shall diligently prosecute the same to completion within the time limit provided in the Supplemental Conditions. Contractor shall also achieve any and all Contract milestones as described elsewhere in the Contract Documents.
The Contractor shall notify the Director, in writing, of its intent to begin Work at least seventy-two (72) hours before Work is begun. The notice shall be delivered to the Director and shall specify the date the Contractor intends to start. If the project has more than one (1) location of Work, a separate notice shall be given for each location.
The Contractor is not authorized to perform any Work until it has received a Notice to Proceed from the City. Should the Contractor begin Work in advance of receiving notice that the Contract has been approved as above provided, any Work performed by it in advance of the said date of approval shall be considered as having been done by the Contractor at its own risk and as a volunteer unless said Contract is so approved thereafter. 6-1.04 PROGRESS SCHEDULE.
A. Preliminary Progress Schedule. The Contractor shall submit to the Director, within twenty (20) Days after date of the Notice to Proceed, a Preliminary Progress Schedule covering the Contractor's activities over the first three (3) months of operation in detail and the remainder of the project in summary. The Preliminary Progress Schedule shall schedule the project within the Contract Time for completion of the Work, and shall be subject to GC - 6:4
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] favorable review by the Director.
B. CPM Schedule. The Contractor shall submit an acceptable Critical Path Method (CPM) Schedule to the Director within thirty (30) Days after the receipt of the Notice to Proceed. Subsequent revisions to said schedule shall be submitted as set forth hereinafter. The requirement for the CPM schedule is included to allow for adequate planning and execution of the Work, to determine the critical nature of delays, and to assist the Director in appraising the reasonableness of the proposed schedule and evaluating progress of the Work. The CPM schedule submitted under this Section shall utilize a CPM format, either the precedence or arrow diagramming method. The definitions of CPM terms and functions shall be as provided in the Associated General Contractors of America book CPM in Construction, A Manual for General Contractors, or a favorably reviewed alternative publication or reference. No progress payment will be made prior to submission and acceptance of the CPM Schedule.
1. The CPM schedule system shall consist of diagrams and accompanying mathematical analyses. The diagrams shall show elements of the project in detail and an entire project summary. Diagrams shall show the order and interdependence of activities and sequence in which the Work is to be accomplished as planned by the Contractor. The basic concept of a network analysis diagram shall be followed to show how the start of a given activity is dependent on the completion of preceding activities and its completion restricts the start of following activities. Detailed network activities shall include, in addition to construction activities, the submittal and favorable review of samples of material and Shop Drawings, the procurement of critical materials and equipment, fabrication of special material and equipment, and their Installation and testing. All activities of the City and the Director that affect progress and required Contract dates for completion of all or parts of the Work shall be shown. The GC - 6:5
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] selection and number of activities shall be subject to favorable review by the Director. Summary networks shall be time scaled. Durations shall be in Days and shall not exceed fifteen (15) Days, except for submittal and delivery items. Where the duration of continuous Work exceeds fifteen (15) Days, Work items in the Construction Schedule shall be subdivided by location, approximate stationing or other sub-element of the Work.
The graphic network diagram shall include for each activity, the description, activity number, the estimated duration in Days, and all activity relationship lines.
The network diagram shall be drawn for the early start of activities. All significant Submittals shall be scheduled along with manual Submittals and training on all large or critical pieces of equipment. If the precedence technique is utilized, the schedule project shall include a calendar in Work Days, a network report sorted by early start and a logic table report sorted by preceding Work item. If the arrow technique is utilized, the schedule report shall include a calendar in Work Days, a network report sorted by early start, a network report sorted by I-J numbers, and a network sorted by slack time and I-J numbers.
2. The critical path shall be shown on all reports and on the graphic network diagram. The activities which constitute the critical path shall be identified.
3. The mathematical analysis of the network diagram shall include a tabulation of each activity. The following information shall be furnished as a minimum for each activity:
(a) preceding and following event numbers
(b) activity description and number
(c) estimated duration of activities
(d) earliest start date (by calendar date)
GC - 6:6
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] (e) earliest finish date (by calendar date)
(f) actual start date (by calendar date)
(g) actual finish date (by calendar date)
(h) latest start date (by calendar date)
(i) latest finish date (by calendar date)
(j) slack or float
(k) percentage of activity completed
4. The program shall be capable of accepting revised completion dates as modified by approved time adjustments and recomputations of all tabulation dates and float accordingly.
5. Submission and review of the system shall be as follows:
(a) The complete network analysis system, consisting of the detailed network mathematical analysis and network diagrams, shall be submitted within thirty (30) Days after receipt of the Notice to Proceed.
(b) The Contractor shall participate in a review and evaluation of the proposed network diagrams and analysis by the Director. Any revisions necessary as a result of this review shall be resubmitted for review by the Director within ten (10) Days. When completed, the favorably reviewed schedule shall then be the schedule to be used by the Contractor for planning, organizing and directing the Work and for reporting progress. If the Contractor thereafter desires to make significant changes in its method of operating and scheduling, the Contractor shall notify the Director in writing stating the reasons for the change. (c) The Contractor shall submit at monthly intervals a report of the actual construction progress. Each monthly report shall cover a period of approximately thirty GC - 6:7
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] (30) Days ending around the 20th of each month. The monthly reports shall be submitted within ten (10) Days of the end of the reporting period.
(1) If the project is proceeding on schedule, the monthly update report may consist of a marked-up copy of the graphical network diagram. This submittal shall clearly indicate the status of any minor shifts in sequence or schedule and the estimated completion date or percent complete of all activities currently in progress. The Contract completion date shall also be indicated. The Contractor shall submit a narrative report relating to status of construction, the schedule, and factors which may affect the remainder of the schedule. The report shall show the activities or portions of activities completed during the reporting period. The report shall state the percentage of the Work actually completed and scheduled as of the report date and the progress along the critical path in terms of Days ahead or behind the allowable dates. (2) If, in the opinion of the Director, the project is behind schedule, the monthly report shall include a revised network diagram and/or mathematical analysis showing the Contractor's proposed revised schedule. An analysis of the effect that the delay has on progress along other paths shall also be included in the report. The Contractor shall also submit a narrative report with each updated analysis which shall include but not to be limited to a description of current and anticipated problem areas, delaying factors and their impact, and an explanation of corrective actions taken or proposed.
(3) Periodic report shall be submitted in sufficient copies to cover Contractor needs plus five (5) copies and an available electronic copy to be retained by the Director.
GC - 6:8
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019]
6. To the extent that the favorably reviewed initial Construction Schedule, or revisions thereto, indicate anything not jointly agreed upon, it shall be deemed to be not favorably reviewed by the Director. Any omission of Work from the detailed schedule, otherwise required for Contract compliance, will not excuse the Contractor from completing such Work within any applicable completion date. The CPM schedule shall be generated by computer methods.
C. Schedule Review. Once each month, on a date mutually agreed upon, but no later than seven (7) business days after the monthly schedule progress report date, a Work Site meeting will be held to review the Construction Schedule and job progress. The Contractor shall also attend weekly meetings scheduled by the Director to review the progress of the Work in the preceding week and in the subsequent week, coordinate the Work with public agencies or other Contractors as required, and allow the Director to plan his or her activities for testing, inspection, etc.
D. Schedule Revisions. The conditions under which the Director will require revisions of the Construction Schedule include the following:
1. When delay in completion of any Work item or sequence of Work items results in an estimated extension of project completion by either twenty (20) business days or by ten percent (10%) of the remaining duration of time to complete the Contract, whichever is less.
2. When delays in Submittals or deliveries make replanning or rescheduling of the Work necessary.
3. When the schedule does not represent actual prosecution and progress of the Work.
GC - 6:9
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019]
4. When any change to the sequence of activities, the completion date for major portions of the Work, or when changes occur which affect the critical path.
5. When Contract Amendments or a Change Order necessitates schedule revision, the Contractor shall submit a schedule analysis of all Change Order Work with its proposal.
E. Cash Flow Projection. A cash flow projection shall be submitted with the Construction Schedule. This cash flow projection shall be revised and resubmitted when revisions of the Construction Schedule will result in changes to the projected cash flow.
F. Schedules showing project completion dates earlier than specified in the Supplemental Conditions will be rejected unless justification can be provided for early completion.
6-1.05 SCHEDULE OF VALUES. Prior to preparation of the first estimate for a progress payment, the Contractor shall submit for favorable review by the Director a detailed Schedule of Values or cost breakdown of the Work under each bid item awarded. The breakdown will then become the basis for partial payment determination. Elements of Work shall be grouped by structure, pipeline, system, etc. Within each grouping, Work should be itemized by readily measurable quantities of Work complete in place. For example, concrete should be in units of cubic yards including form Work and reinforcing steel. Move-on costs, bond and insurance costs, and Overhead costs shall not be considered an item of cost for this purpose but shall be prorated over items of Work. In the event the Schedule of Values is not favorable reviewed by the Director, another Schedule of Values shall be submitted that is mutually acceptable to the Contractor and the Director. 6-1.06 CITY’S RIGHT TO STOP WORK. The Director shall have the GC - 6:10
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] authority to order the Contractor, in writing, to suspend the Work wholly or in part, for such period as the Director may deem necessary due to the failure on the part of the Contractor to correct Work that is not in accordance with the requirements of the Contract Documents or if Contractor persistently fails to carry out Work in accordance with the Contract Documents.
The Contractor shall immediately comply with the written order of the Director to suspend the Work wholly or in part. The suspended Work shall be resumed when conditions are favorable and methods are corrected, as ordered or approved in writing by the Director.
Any stoppage of work under this section shall be at the Contractor’s sole expense, and the Contractor shall have no claim against the City based on the Contractor’s failure to perform the Work in accordance with the Contract Documents.
In addition to the City’s right to stop Work, the City may order the Contractor to submit to the City at no additional cost to the City, additional information concerning Contractor’s planned Work if the Contractor fails to promptly correct Work that is not in accordance with the requirements of the Contract Documents or persistently fails to carry out Work in accordance with the Contract Documents. The additional information ordered by the City may include, but is not limited to, preparation of Submittals or Working Drawings not otherwise required to be submitted under the Contract Documents.
In the event the City discovers that the Contractor has created an unsafe condition the City may arrange for other work forces to remedy the condition. Such remedial work shall be at the sole discretion of the City. If this action is required, the City may unilaterally terminate Work under the Contract, and will pay only for the quantities of Work actually performed, less the cost of the City’s remedial Work. In the event that Work is not halted, the Contractor must take immediate steps to correct the situation. There will be no extra payment for Work required GC - 6:11
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] to correct unsafe conditions.
The right of the City to suspend the Work shall not give rise to a duty on the part of the City to exercise this right for the benefit of the Contractor or any other person or entity. This right shall be in addition to and not in restriction or derogation of the City’s other rights under the Contract Documents.
In the event of a suspension of Work under any of the conditions set forth in this Section 6-1.06, such suspension of Work shall not relieve the Contractor of its legal responsibilities as set forth in these General Conditions.
6-1.07 TIME OF COMPLETION. The Contractor shall complete the entire Work, including Installation, repairs, startup, troubleshooting, painting, and touchup, training, submittal or record drawings, and manuals, cleanup, demobilization, and all other Work within the number of Days set forth in the Supplemental Conditions. The time for completion includes an allowance for working time lost due to normal inclement weather.
Extensions of time may be allowed for unusual inclement weather under the provisions hereinafter described. Unusual inclement weather is weather which adversely affects “controlling” operations or the critical path of construction and which meets one of the following criteria:
A. For the particular calendar month in question, the number of individual Days with rainfall exceeding 0.10 inches exceeds the average number of such Days for that month over the immediately preceding five (5) years of record by at least three (3) Days.
B. For the particular calendar month in question, the total cumulative rainfall for that month exceeds the average cumulative rainfall for that month over the immediately preceding five (5) years of record by at least two inches (2”).
GC - 6:12
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Rainfall shall be measured at a publicly operated, maintained, and reported station in reasonable proximity to the construction site. A claim for delay shall indicate the period of rainfall which is claimed as “unusual,” the specific dates during which the unusual rainfall and subsequent wet soil conditions prevented Work, and the specific critical path tasks adversely affected by such unusual weather. A claim for delay due to unusual inclement weather shall be filed within ten (10) Days of the apparent end of the unusual inclement rainfall period, whether or not the monthly totals are available at that time. The burden of proof that weather meets the criteria for unusual weather shall be solely the responsibility of the Contractor.
It is the responsibility of the Contractor to order materials required for the Work properly and promptly on a Notice to Proceed. If evidence presented demonstrates that, in spite of the Contractor's efforts, government-established priorities controls delay material deliveries, suitable extension of time will be made.
If performance of extra Work ordered by the City or failure of the City to provide the necessary site for Installation affects construction tasks which are “controlling” or which are on the “critical path” of the Construction Schedule, suitable extensions of time will be made.
The Contractor shall not be entitled to a time extension for delays in activities on non-critical paths of the favorably reviewed schedule unless the duration of the excusable delay exceeds the total float of the activities being delayed. If the duration of an excusable delay does exceed the total float of the activities affected by the delay, the Contractor shall be entitled to an extension equal to the difference.
C. Determination that a day is a non-working day by reason of inclement weather or conditions resulting immediately therefrom, shall be made by the Director. 6-1.08 LIQUIDATED DAMAGES. It is agreed by the parties to the Contract GC - 6:13
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] that in case all the Work called for under the Contract in all parts and requirements is not completed within the number of Days as set forth in the Supplemental Conditions, damage will be sustained by the City and that it is and will be impracticable and extremely difficult to ascertain and determine the actual damage which the City will sustain in the event of and by reason of such delay; and it is therefore agreed that the Contractor will pay to the City, the monetary amount indicated in the Supplemental Conditions in dollars (U.S.) per day for each and every calendar day of delay in completing the Work in excess of the number of Days prescribed and the number of additional calendar days, if any, authorized by Contract Change Order; and the Contractor agrees to pay said Liquidated Damages herein provided for, and further agrees that the City may deduct the amount thereof from any moneys due or that may become due the Contractor under the Contract.
It is further agreed that in case the Work is not finished and completed in all parts and requirements within the number of Days specified, the City shall have the right to increase the number of Days or not, as it may deem best to serve the interest of the City, and if it decides to increase the said number of Days, it shall further have the right to charge to the Contractor, its heirs, assigns or sureties and to deduct from the final payment for the Work all of any part, as it may deem proper, of the actual cost of engineering, inspection, superintendence, and other Overhead expenses which are directly chargeable to the Contract, and which accrue during the period of such extension, except that cost of preparation of final statement shall not be included in such charges.
6-1.09 DELAYS AND EXTENSIONS TO THE WORK. The Contractor must complete all Work within the time specified in the Agreement. The Contractor will be granted an extension of time and will not be assessed with liquidated damages or the cost of engineering GC - 6:14
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] and inspection for any delay in substantially completing the Work (or parts thereof) beyond the time set forth in the Agreement, provided that such delay was caused by unforeseeable causes beyond the control and without the fault or negligence of the Contractor. Examples of such causes include acts of public enemy, fire, floods, abnormal weather (as described below), earthquakes, epidemics, quarantine restrictions, strikes, labor disputes and freight embargoes, fire, changes made pursuant to the provisions of “Changes in the Work” under Section 3 of these General Conditions or acts or neglect of the City not contemplated by the Contract Documents.
In all cases, any extension of time is conditioned on the following:
1. That the cause is not due to the fault or negligence of the Contractor, and the Contractor has taken reasonable precautions to prevent and minimize the effects thereof; and
2. That the Contractor notifies the Director in writing within three (3) Days from the beginning of such delay specifying the nature of the delay and the measures that have been or will be taken to prevent or minimize the delay. Failure to submit written notice within this time period shall constitute an absolute waiver of any claim for a time extension.
No extension of time will be granted for a delay caused by a shortage of materials, unless the Contractor furnishes to the City documentary proof that it has diligently made every effort to obtain such materials from all known sources within reasonable reach of the work and further proof, as acceptable to the Director, that the inability to obtain such materials when originally planned did in fact cause a delay in Final Completion of the entire Work which could not be compensated for by revising the sequence of the Contractor’s operations. Only the physical shortage of material will be considered as a cause for extension of time, and no consideration GC - 6:15
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] will be given to any claim that material could not be obtained at a reasonable, practical or economical cost or price, unless it is shown to the satisfaction of the City that such material could have been obtained only at exorbitant prices entirely out of line with current rates, taking into account the quantities involved and the usual practices in obtaining such quantities.
No extension of time will be granted for a delay caused by Contractor’s staff turnovers, understaffing or insufficient quantity of qualified staff able to perform the necessary work.
The term “shortage of materials,” as used in this section, shall apply only to materials, articles, parts or equipment which are standard items and shall not apply to materials, parts, articles or equipment which are processed, made, constructed, fabricated or manufactured to meet the specific requirements of the Contract Documents.
No extensions of time will be granted for delays that have no measureable impact on the completion of the Work (or parts thereof) under the Contract Documents. When extensions of time are granted, they will be limited to the period equivalent to the actual number of Days lost on the critical path or controlling operations of the Construction Schedule, taking into account the extent to which that delay could be decreased by reasonable mitigation measures by the Contractor. All requests for extensions of time must be supported with a critical path analysis showing the critical path and impacts to it. Contractor’s failure to submit this analysis will be sufficient cause for denial of any request for a time extension.
Within a reasonable period of time after the Contractor submits the notice and information required by this section, the City will determine whether an extension of time is justified and, if so, the number of days for the extension.
Abnormal weather may be a valid basis for a time extension under the Agreement. “Abnormal Weather” occurs when the number of days of rain above 0.5 inches in a 24 hour GC - 6:16
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] period exceeds the average for such rainfall in a particular month as determined by the National Weather Service. The Contractor will only be entitled to, at most, a time extension for the number of days of rain exceeding the average for that month in the locale where the Work is to be performed. If delays are caused by the Contractor or those for whom the Contractor is responsible, the Contractor will only be entitled to, at most, a time extension for the number of rain days exceeding the average for the month when the Work should have been performed.
In addition, before a time extension may be granted for abnormal weather, the Contractor must establish that the rain either significantly impacted at least sixty percent (60%) of the planned work of the controlling operations for a particular day or prohibited at least five (5) hours of work on the controlling operations planned for that day. Contractor shall employ reasonably methods to mitigate the impact of abnormal weather (i.e., dewatering, protection of site, etc.) The occurrence of rain during non-work hours or having minimal impact to work on the controlling operation shall not constitute a day of abnormal weather.
In the event that the project experiences favorable weather for a particular month (e.g., the number of actual rain days in a month less than that indicated above for allowable rain days per months), the additional float resulting from such favorable weather shall accrue to the project.
Any Contractor claim for damages or additional compensation based on delay shall be limited to only those circumstances where the Contractor has fulfilled each of the following three (3) requirements:
1. Contractor has established its entitlement to a time extension pursuant to the provisions described above regarding delay and extensions to the Work.
2. The delay was caused solely by the City’s issuance of changes made pursuant to the GC - 6:17
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] provisions of “Changes in the Work” under Section 3 of these General Conditions or by acts or neglect of the City.
3. The delay was unreasonable under the circumstances and not within the contemplation of the parties.
It is expressly understood and agreed that delays caused by the City will be noncompensable when there are concurrent delays caused by the Contractor. Also, the Contractor shall have no entitlement to additional compensation for any delay where there have been concurrent delays caused by non-compensable delays, including, but not limited to, fire, floods, earthquakes, epidemics, quarantine restrictions, strikes, labor disputes, and freight embargoes.
Contractor’s damages and/or additional compensation for delays will consist solely of the extended costs of maintaining the Contractor’s Work Site presence. The Contractor will not be entitled to any extended home office overhead.
Compensation for idle time of equipment will be determined in the same manner as determinations are made for equipment used in the performance of extra work paid for on a Force Account basis with the following exceptions:
1. The time for which compensation will be paid will be the actual normal working hours during which such delay conditions exists, but in no case will exceed eight (8) hours in any one day.
2. The days for which compensation will be paid will be each calendar day of the work week (defined elsewhere in the Contract Documents) and Legal Holidays, during the existence of such delay, except that when rental of the equipment is paid for under the provisions in Section 3-1.06C, “Force Account Payment – Equipment,” of these General Conditions, no payment will be made for delays in accordance with the GC - 6:18
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] provisions of this section.
Actual loss shall be understood to include no items of expense other than idle time of personnel, cost of extra moving of equipment, and cost of longer hauls. Compensation for idle time of equipment will be determined as provided in this section and compensation for idle time of personnel will be determined pursuant to Section 3-1.06A, “Force Account Payment – Labor,” of these General Conditions. No markup will be added in either case for Overhead and profit.
The cost of extra moving of equipment and the cost of longer hauls will be paid for as extra work as provided pursuant to “Changes to the Work” elsewhere in the Contract Documents. 6-1.10 TERMINATION.
6-1.10A TERMINATION OF AGREEMENT – CONVENIENCE OF
CITY. The Department reserves the right to terminate the Contract at any time and for any reason if the Director determines that to do so would be in the best interest of the City. Any termination which is not based on the circumstances set forth in Section 6.1-10B below shall be effected by delivery to the Contractor of a Notice of Termination specifying the extent to which performance of Work under the Contract is terminated, and the date upon which such termination becomes effective.
Upon the Contractor’s receipt of a written Notice of Termination for convenience, the Contractor shall cease Work as to those portions of the project so terminated and shall undertake the steps outlined in Section 6-1.10B below.
1. Acceptance of the Contract as hereinafter specified shall not relieve the Contractor of responsibility for damage to materials except as follows:
a. The Contractor's responsibility for damage to materials for which partial payment has been made as provided in Section 7-1.07, “Progress GC - 6:19
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Payments,” of these General Conditions and for materials furnished by the City for use in the Work and unused shall terminate when the Director certifies that such materials have been stored in the manner and at the locations he or she has directed.
b. The Contractor's responsibility for damage to materials purchased by the City subsequent to the issuance of the notice that the Contract is to be terminated shall terminate when title and delivery of such materials has been taken by the City.
c. When the Director determines that the Contractor has completed the Work under the Contract directed to be completed prior to termination and such other Work as may have been ordered to secure the project for termination, the Contractor will recommend that the City formally accept the Work, and immediately upon and after such Acceptance by the City, the Contractor will not be required to perform any further Work thereon and shall be relieved of its contractual responsibilities for injury to persons or damage to property which occurs after the formal Acceptance of the project by the City.
2. The total compensation to be paid to the Contractor shall be determined by the Director on the basis of the following:
a. The reasonable cost to the Contractor, without profit, for all Work performed under the Contract, including mobilization, demobilization and Work done to secure the project for termination. Reasonable cost will include a reasonable allowance for project Overhead and general GC - 6:20
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] administrative Overhead not to exceed a total of seven percent (7%) of Direct Costs of such Work.
b. A reasonable allowance for profit on the cost of the Work performed as determined under subsection (a), provided the Contractor establishes to the satisfaction of the Director that it is reasonably probable that it would have made a profit had the Contract be completed and provided further, that the profit allowed shall in no event exceed four percent (4%) of said cost. c. The reasonable cost to the Contractor of handling material returned to the vendor, delivered to the Department or otherwise disposed of as directed by the Director.
d. A reasonable allowance for the Contractor's administrative costs in determining the amount payable due to termination of the Contract.
All records of the Contractor and the Contractor's Subcontractors, necessary to determine compensation in accordance with this Section, shall be open to inspection or audit by representatives of the Department at all times after issuance of the notice that the Contract is to be terminated and for a period of three (3) years, and such records shall be retained for that period.
After Acceptance of the Work by the Director, the Director may make payments on the basis of interim estimates pending issuance of the Final Statement, when in his or her opinion the amount thus paid, together with all amounts previously paid or allowed, will not result in total compensation in excess of that to which the Contractor will be entitled. All payments, including payment upon the Final Statement, shall be subject to deduction for prior payments and amounts, if any, to be kept or retained under the provisions of the Contract.
GC - 6:21
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] In the event that the City terminates this Contract under Section 6-1.10B below and it is determined for any reason that there was not sufficient cause to do so, the City’s termination automatically will convert to a termination for convenience under this section and the terms and conditions outlined in this section automatically will be applied to effectuate the Contract termination. Thus, damages to which a Contractor may be entitled as a result of an improper default termination will be limited to the amounts provided for in this section.
The provisions of this section shall be included in all subcontracts. 6-1.10B TERMINATION OF AGREEMENT - FOR CAUSE. An
“Event of Default” as referred to in this section shall occur if the Contractor:
1. Fails to maintain progress of the Work in accordance with the requirements of the Contract Documents; or
2. Fails to prosecute the Work or any of its components in accordance with the Contract Documents; or
3. Persistently or repeatedly fails or refuses to supply sufficient properly skilled workers or proper material to permit the performance of the Work in accordance with the Contract Documents; or
4. Fails to make prompt payment to Subcontractors or Suppliers in accordance with the respective agreements between the Contractor and the Subcontractor and Contractor and Supplier; or
5. Fails to comply with applicable laws, ordinances or rules, regulations or orders of a public authority having jurisdiction over the Work; or
6. Abandons, assigns or sublets the Contract without approval of the City; or
7. Becomes bankrupt or is subject to appointment of a receiver on behalf of the GC - 6:22
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Contractor; or
8. Otherwise is guilty of a substantial breach of a provision of the Contract Documents.
Upon the City’s reasonable belief that there has been an Event of Default by the Contractor, the City may elect to give the Contractor written notice thereof. The Contractor thereafter shall cure the default as soon as possible and in no event after ten (10) Days from the Contractor’s receipt of the City’s written notice.
If the Contractor does not timely cure its default, the City may, without waiver of any of its other rights and remedies, elect to terminate the Contract, or portion thereof.
Upon the City’s election to terminate the Contract, or portion thereof, the City shall have the right to complete the Work, or portion involved, by whatever means and methods it deems expedient, including the hiring of others on such terms as the City deems advisable. The City shall have the right to take possession of the Contractor’s materials, plant, tools, equipment and property of any kind provided by or on behalf of the Contractor for the purpose of the Work, or a portion of them, without being responsible to the Contractor for wear and tear. The Contractor shall have no rights in such property during its use by the City. The City shall not be required to obtain the lowest prices for completing the Work or a portion of it but shall make such expenditures as, in the City’s sole judgment, best accomplish such completion.
The expense of completing such Work or portion thereof, together with a reasonable charge for engineering, managerial and administrative services, as certified by the City, shall be charged to the Contractor, and the expense so charged shall be deducted by the City out of such monies as may be due or may at any time thereafter become due to the Contractor. In case such expense is more than the sum which otherwise would have been payable to the Contractor under the Agreement, then the Contractor or its surety or sureties shall promptly pay the amount of GC - 6:23
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] such excess so due. When the City terminates the Contract under this section, the Contractor shall not be entitled to receive any further payments until the Work is completed and there has been a final settlement of costs of completing the Work covered by such notice of default.
The City will issue to the Contractor a written notice specifying that the Contract, or portion thereof, is terminated. Upon receipt of said written notice and, except as otherwise directed in writing by the City, the Contractor shall:
1. Stop all Work under the Contract; or if partial termination, stop Work relating to the terminated portion of the Agreement;
2. Perform Work the City deems necessary to secure the Work Site for termination including measures to leave the Work Site in a safe condition;
3. Remove equipment from the site of Work, as specified by the City;
4. Take such action as is reasonably necessary to protect materials from damage;
5. Notify all Subcontractors and Suppliers that the Contract or portion thereof is being terminated and that their contracts or orders are not to be further performed unless otherwise authorized in writing by the City;
6. Provide the City with an inventory list of all materials previously produced, purchased or ordered from Suppliers for use in the Work and not yet used in the Work, including its storage location, and such other information as the City may request;
7. Dispose of materials not used in the Work as directed by the Director. It shall be the Contractor’s responsibility to provide the City (a) with good title to all materials purchased by the City hereunder, including materials for which partial payment has been made by the City and (b) with bills of sale or other documents of title for such GC - 6:24
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] materials;
8. Subject to the prior written approval of the City, settle all outstanding liabilities and all claims arising out of Subcontractors or orders for materials terminated hereunder.
To the extent directed by the City, the Contractor shall assign to the City all rights, title and interests of the Contractor under subcontracts or orders for materials terminated hereunder. The City shall be at liberty to negotiate with and engage any Subcontractors who had contracted with the Contractor for the Work;
9. Furnish the City with the documentation required to be furnished by the Contractor under the provisions of the Contract Documents, including, on projects as to which Federal funds are involved, all documentation required under the Federal requirements included in the Agreement; and
10. Take such other actions as the City may direct.
If only a portion of the Work has been terminated, the Contractor shall perform the remainder of the Work in conformity with the Contract Documents and in such a manner as not to interfere with the City or others in their performance and completion of the portion of the Work which was terminated.
The City may recover from the Contractor the amount of any loss or damage, including consequential damages, suffered or incurred as a result of the Contractor’s default.
GC - 7:1
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] SECTION 7
ACCEPTANCE AND PAYMENT
7-1.01 ACCEPTANCE. When the Contractor believes that the entire Work is fully and finally completed, including the satisfactory completion of inspections, tests, and documentation specified in the Contract Documents and completion of all punch list and cleanup items, the Contractor shall submit to the City a written request for final Acceptance within fifteen (15) Days thereafter, specifying that the Work is fully and finally completed and the date on which it was completed. Within thirty (30) Days after receipt of the request for final Acceptance, the City will inspect the Work and will either:
1. Reject the request for final Acceptance, specifying the defective and/or uncompleted portions of the Work; or
2. Notify the Contractor that the Work will be accepted by Resolution of the City Council of the City of Roseville, and a Notice of Completion will be caused to be recorded by the City Clerk; or
3. Notify the Contractor that the Work has been accepted by the City but no Notice of Completion will be recorded.
If the City rejects the request for final Acceptance, the Contractor shall promptly remedy the defective and/or uncompleted portions of the Work. Thereafter, the Contractor shall again submit a written request for final Acceptance of the Work, specifying a new date based on the date the defective and/or uncompleted portions of the Work were corrected. Thereafter, the foregoing procedure shall apply successively until the City has verified that the Work is fully and finally completed and accepted the Work by Resolution of the City Council or by written GC - 7:2
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] notification from the Director. Immediately upon such Acceptance, the Contractor shall be relieved of the duty of maintaining the Work as a whole.
All warranties commence upon final Acceptance of the Work. The City’s final Acceptance of the Work shall not be construed as an acceptance by the City of any latent defects discovered with regard to the Contractor’s work. Furthermore, Contractor’s obligations under Section 5-1.22 “Responsibility for Damage and Indemnification” shall still remain applicable after the City’s grant of final Acceptance of the Work.
Prior to final Acceptance, the Contractor shall submit to the City the Record Documents and Operation and Maintenance Manuals as specified in the Contract Documents. 7-1.02 SCOPE OF PAYMENT. The Contractor shall accept the compensation provided in the Contract as full payment for furnishing all labor, materials, tools, equipment, and incidentals necessary to the completed Work and for performing all Work contemplated and embraced under the Contract; also for loss or damage arising from the nature of the Work, or from the action of the elements, or from any unforeseen difficulties which may be encountered during the prosecution of the Work until the Acceptance by the Director and for all risks of every description connected with the prosecution of the Work, also for all expenses incurred in consequence of the suspension or discontinuance of the Work as provided in the Contract; and for completing the Work according to the Contract. Neither the payment of any estimate nor of any retained percentage shall relieve the Contractor of any obligation to make good any defective Work or material.
No compensation will be made in any case for loss of anticipated profits. 7-1.03 NOTICE OF POTENTIAL CLAIM. The Contractor shall not be entitled to the payment of any additional compensation for any act or failure to act by the City, GC - 7:3
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] including failure or refusal to issue a Change Order, or for the happening of any event, thing, occurrence or other cause unless the Contractor has given the City due written Notice of Potential Claim as hereinafter specified, provided, however, that compliance with this Section 7-
1.03 shall not be a prerequisite as to matters within the scope of the notice provisions in Section 6-1.07, “Time of Completion,” or the notice provisions in Section 6-1.08, “Liquidated Damages,” of these General Conditions, nor to any claim which is based on differences in measurement or errors of computation as to correct quantities.
The written Notice of Potential Claim shall set forth the reasons for which the Contractor believes additional compensation will or may be due, the nature of the costs involved, and, insofar as possible, the amount of the potential claim. The said Notice as above required must have been given to the Director prior to the time that the Contractor shall have performed the Work giving rise to the potential claim for additional compensation, if based on an act or failure to act by the Director, or in all other cases within seven (7) Days after the happening of the event, thing, occurrence or other cause giving rise to the potential claim.
If the Notice of Potential Claim does not include complete information about the claim or the parties do not execute a Contract Change Order in connection with the Notice of Potential Claim, Contractor shall submit complete information about its claim for additional compensation and/or extension of time for performance within fifteen (15) Days after such work is performed.
Failure to provide written notice of claim prior to undertaking such work or failure to timely submit a complete and specific information about the claim for additional compensation and/or extension of the time for performance shall be deemed a waiver and abandonment of such claim.
If there is a dispute over any claim, the Contractor shall continue to Work during the dispute resolution process in a diligent and timely manner as directed by the City, and shall be GC - 7:4
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] governed by all applicable provision of the Agreement.
The Contractor shall maintain cost records of all Work that is the basis of any dispute.
On a daily basis, Contractor shall submit to City completed daily forms, the format of which will be acceptable to the City, with respect to the Contractor’s costs of performing the disputed work.
These daily forms shall itemize all of Contractor’s costs in performing the disputed work, including, but not limited to, all costs relating to materials, labor and equipment with respect to the disputed work. These daily forms shall provide names or identification and classification of affected workers, the hourly rate of pay and hours worked, and also the size, type, and identification number of equipment and hours operated. Said daily work forms shall be duly signed and verified by the Contractor or its authorized representative. The City’s receipt of the Contractors’ daily forms shall not constitute an approval of the Contractor’s claim. Contractor’s failure to submit the daily forms on a daily basis shall constitute a waiver of the Contractor’s right to claim any additional compensation for the disputed work.
Each Contractor claim shall include full and complete information concerning the Claim.
Contractor shall provide a clear, concise recital of the basis, upon which the claim is asserted, including a designation of the provisions of the Contract Documents upon which the claim is based. Contractor shall also include a statement as to the amount of time and/or compensation sought pursuant to the claim; if Contractor’s claim arises from an ongoing occurrence, Contractor shall so state in its claim, including a description of the specific Work activities affected by the claim. All costs, expenses or damages and extensions of time claimed shall be described in reasonable detail under the circumstances together with complete supporting documentation.
The City will review any timely Notice of Potential Claim and supporting information GC - 7:5
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] submitted by Contractor. In conducting this review, the City shall have the right to require the Contractor to submit such additional or supporting documents, data and other information as the City may require.
If an agreement can be reached which resolves the Contractor’s claim, the parties will execute a Contract Change Order to document the resolution of the claim. If the parties cannot reach agreement with respect to the Contractor’s claim, the Contractor shall still be obligated to comply with the claim identification provisions identified in these General Conditions, including but not limited to Section 7-1.04.
It is the intention of this Section 7-1.03 that differences between the parties arising under and by virtue of the Contract be brought to the attention of the Director at the earliest possible time in order that such matters may be settled, if possible, or other appropriate action promptly taken. The Contractor hereby agrees that it shall have no right to additional compensation for any Claim that may be based on any such act, failure to act, event, thing or occurrence for which no timely written Notice of Potential Claim as herein required was filed. 7-1.04 CLAIMS. Contractor must submit all Claims, for which it has previously submitted a Notice of Potential Claim, prior to Acceptance of the Work. Each such Claim must be sent to the City by registered mail or certified mail with return receipt requested and must contain reasonable documentation to support the Claim.
Upon receipt of a Claim, the City shall conduct a reasonable review of the Claim and, within a period not to exceed forty-five (45) Days, or such further time as mutually agreed upon or necessary pursuant to Public Contract Code Section 9204, the City shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. If the City does not respond to a Claim from the Contractor within the time GC - 7:6
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] specified herein, such Claim shall be deemed rejected in its entirety.
Any payment due on an undisputed portion of the Claim shall be processed and made within sixty (60) Days after the City issues its written statement.
If the Contractor disputes the City’s written response, or if the City does not respond within the time specified herein, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within thirty (30) Days for settlement of the dispute.
Within ten (10) business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within sixty (60) Days after the City issues its written statement. Any disputed portion of the Claim, as identified by the Contractor in writing, 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 ten (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. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be resolved in accordance with Section 7-1.05 below.
7-1.05 DISPUTE RESOLUTION PROCEDURE. All Claims not resolved GC - 7:7
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] pursuant to Section 7-1.04, shall be resolved pursuant to Public Contract Code Section 10240, et seq.
7-1.06 STOP PAYMENT NOTICES. The City, by and through the Department or other appropriate office or officers, may at its option and at any time retain out of any amounts due the Contractor, sums sufficient to cover claims, filed pursuant to Civil Code Section 9350, et seq., including an amount to provide for the reasonable cost of any litigation thereunder. 7-1.07 PROGRESS PAYMENTS. Within fifteen (15) Days after the effective date in the Notice to Proceed, but in any event prior to Contractor’s first Application for Payment, the Contractor shall submit to the City a detailed Schedule of Values.
Upon its approval, the Schedule of Values will form a basis for determining the compensation payable to the Contractor based on its actual progress of Work with respect to each Lump Sum bid item. The City, prior to any progress payment being made, must approve the Schedule of Values.
At the Director’s discretion the approved Schedule of Values may be used as the basis for calculating the adjustment in compensation for a lump sum bid item due to changes ordered by the Director. When an ordered change increases or decreases the quantities shown in an approved Schedule of Values, at the Director’s discretion, the adjustment in compensation may be determined in the same manner specified for increases and decreases in the quantity of a bid item of work in accordance with Section 3-1.05(B), “Contract Price Adjustment,” of these General Conditions.
The Contractor once in each month shall submit an Application for Payment, for approval by the Director. Contractor’s Applications shall be based on the Schedule of Values submitted to the City. These applications shall be supported by: (1) documentation requested by the City to GC - 7:8
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] substantiate the payment request; (2) statutory releases from Contractor and all Subcontractors and suppliers pursuant to Civil Code Sections 8132 and 8138; and (3) certified payroll records for the period for which payment is requested. Specifically, the Contractor will submit conditional waivers upon progress payment executed by all contractors and suppliers that will be receiving sums sought in the instant payment request and also submit unconditional waivers upon progress payment executed by all contractors and suppliers that have been paid to the date of the payment request. The Contractor shall certify that the Work for which payment is requested has been accomplished. When requested by the City, the Contractor shall submit receipts, invoices and other documentation that the City requires to be furnished for purpose of evaluating the application.
The City will pay the Contractor within thirty (30) Days after its receipt of an undisputed and properly submitted Application for Payment, after deducting all previous payments, retention, and other sums as described in the Contract Documents. Within seven (7) Days of its receipt of the Contractor’s Application for Payment, the City will determine whether it complies with the provisions of the Contract Documents. As appropriate, the City will return the application to the Contractor accompanied by a document prepared by the City setting forth the reasons for the rejection. Thereafter, the Contractor shall correct and resubmit the Application for Payment. Progress payments may be withheld for Work that is not performed in accordance with the Contract Documents.
The City may deduct the following from each progress payment:
1. An amount equal to one hundred and twenty-five percent (125%) of the amount claimed under any stop payment notice or other lien filed against the Contractor, which includes an amount to provide for the reasonable cost of any litigation GC - 7:9
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] thereunder.
2. Any Liquidated Damages or Assessments that have accrued as of the date of the Application for Payment.
3. Any sums expended by the City in performing any of the Contractor’s obligations under the Agreement that the Contractor has failed to perform.
4. Any other sums that the City is entitled to recover from the Contractor under the terms of the Contract including damages to the City’s property.
5. The failure of the City to deduct any of the above identified sums from a progress payment shall not constitute a waiver of the City’s right to such sums.
No such estimate or payment shall be construed to be an acceptance of any defective Work or improper materials.
Under no circumstances will the City make payment to unlicensed Contractors. As a condition of payment, the Contractor is required to maintain the applicable Contractor’s license as identified in the Notice to Contractors for the duration of the Work. 7-1.08 PAYMENT FOR MATERIALS AND EQUIPMENT ON HAND.
Partial payments may be made to the extent of seventy-five percent (75%) of the cost of materials and equipment plus delivery to be incorporated in the Work, provided that such materials and equipment meet the requirements of the Contract Documents and are delivered to acceptable sites on the plant site or at other sites in the vicinity that are acceptable to the City and only with the prior written approval by the City. Such delivered costs of stored or stockpiled materials and equipment may be included in the next progress payment after the following conditions are met:
A. Equipment and materials will only be eligible if given conditional or final GC - 7:10
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] Acceptance by the Director and are in apparent compliance with favorably reviewed Submittals.
B. Only equipment or materials which have received favorable review of Shop Drawings will qualify.
C. The material or equipment has been stored or stockpiled adequately protected against damage in a manner acceptable to the Director at an approved site.
D. The Contractor has furnished the Director with acceptable evidence of the quantity and the quality of such stored or stockpiled materials or equipment with identification of where they will be incorporated into the project with Specification reference.
E. The Contractor has furnished the Director with satisfactory evidence that the material or equipment and transportation costs have been paid.
F. The Contractor has furnished the City legal title (free of liens or encumbrances of any kind) and lien releases to the material or equipment so stored or stockpiled.
G. The Contractor has furnished the City evidence that the material or equipment so stored or stockpiled is insured against loss by damage to or disappearance of such materials at any time prior to use in the Work.
It is understood and agreed that the transfer of title and the City payment for such stored or stockpiled materials or equipment shall in no way relieve the Contractor of its responsibility for furnishing and placing such materials or equipment in accordance with the requirements of the Contract Documents.
In no case will the amount of progress payments for materials or equipment on hand exceed the Contract Price for such materials or equipment or the Contract Price for the Contract item in which the material is intended to be used.
No partial payment will be made for stored or stockpiled living or perishable plant GC - 7:11
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] materials.
The Contractor shall bear all costs associated with the progress payment of stored or stockpiled materials or equipment in accordance with the provisions of this Section. 7-1.09 RETENTION ON PROGRESS PAYMENTS. From each progress payment estimate, five percent (5%) will be deducted and held in retention by the City. The remainder, less any deductions described in Section 7-1.07, “Progress Payments,” of these General Conditions, will be paid to the Contractor as progress payments.
Pursuant to Public Contract Code Section 22300, the successful Bidder may submit Securities in lieu of retention payments by the City. Upon the Contractor’s request, the City will make payment of funds withheld from progress payments, pursuant to the requirements of California Public Contract Code Section 22300, if the Contractor deposits in escrow with the City or with a bank acceptable to the City, securities eligible for investment under California Government Code Section 16430, bank or savings and loan certificates of deposit, interest bearing demand deposit accounts, standby letters of credit, or any other security mutually agreed to by the Contractor and the City, upon the following conditions:
1. The Contractor shall bear the expenses of the City and the escrow agent in connection with the escrow deposit made.
2. Securities or certificates of deposit to be placed in escrow shall be of a value at least equivalent to the amounts of retention to be paid to the Contractor pursuant to this section.
3. Contractor shall enter into an escrow agreement satisfactory to the City, which agreement shall be substantially similar to the form provided in California Public Contract Code section 22300.
GC - 7:12
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019]
4. The Contractor shall obtain the written consent of the surety to such agreement.
7-1.10 FINAL PAYMENT. Final payment will be made only after Contractor has achieved Final Completion of the Work pursuant to the provisions of Section 7-1.01, “Acceptance,” of these General Conditions. Before final payment can be made, the Contractor shall have furnished the City with the following:
1. All Record Documents, catalogues, instruction sheets and information as required by the Contract Documents.
2. Conditional Waivers and Releases Upon Final Payment executed by Contractor and all Subcontractors and Suppliers, as provided by Civil Code Section 8136. Unconditional Waivers and Releases Upon Final Payment, as provided in Civil Code Section 8138, executed by Contractor and all Subcontractors and Suppliers, must be provided for all Subcontractors and Suppliers that have been paid in full.
Within thirty (30) Days of the date of the City’s Acceptance of the Work, the Contractor shall prepare and submit a Final Invoice, showing the proposed total amount due the Contractor, segregated by Bid item quantities, Change Order Work, and other basis for payments; deductions made or to be made for prior payment; and amounts previously retained. Prior invoices and payments shall be subject to correction in the proposed Invoice for Final Payment. Payments to the Contractor will be made only for actual quantities of the Contract items of work constructed in accordance with the Contract Documents.
The City will review the Contractor’s proposed Final Invoice and necessary changes or corrections will be forwarded to the Contractor. Within ten (10) Days thereafter, the Contractor GC - 7:13
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] shall submit a revised proposed Final Invoice incorporating changes or corrections made by the City together with any new claims resulting therefrom. Upon approval by the City, the corrected proposed Final Invoice will become the approval Final Invoice.
If agreements are reached on all questions regarding the Final Invoice, the City will pay the entire sum found due on the approved application. However, the City will withhold sums sufficient to pay all unsettled claims for which stop payment notices have been filed pursuant to Section 9350, et seq. of the California Civil Code, together with the reasonable cost of any litigation thereunder.
Final payment will be made within thirty (30) Days after receipt of an approved Final Invoice and other required Submittals referenced above or within sixty (60) Days after Acceptance of the work by the City, whichever is later, provided, however, that if an approved Final Invoice has not been submitted within sixty (60) Days after Acceptance of the Work by the City, the City may elect to make payment of sums not in dispute without prejudice to the right of either the City or the Contractor in connection with such disputed sums. Notwithstanding the foregoing, if a Notice of Completion is recorded, final payment shall not be made prior to the expiration of the thirty-five (35) calendar day lien period. The start of this lien period is the date the Placer County Recorder’s Office records the Notice of Completion.
The City may withhold from the Final Payment an amount not to exceed one hundred fifty percent (150%) of any amount in dispute between the City and the Contractor.
The making of Final Payment shall not operate to release the Contractor or its sureties from obligations arising under the Contract, the Contract bonds and warranties as herein provided. Specifically, the making of final payment shall not constitute a waiver and release of claims by the City arising from:
GC - 7:14
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019]
1. Unsettled or future liens;
2. Failure of the Work to comply with the requirements of the Contract Documents;
3. The terms of any warranties required by or contained in the Contract Documents;
4. The right to any insurance proceeds or the right to make any insurance or bond claims;
5. Any claims with respect to Contractor’s obligations of indemnity with respect to claims asserted by third parties; or
6. Any latent deficiencies with the Work or Contractor’s fraud. 7-1.11 CLERICAL ERRORS. Notwithstanding the provisions of Section 7-
1.10, “Final Payment,” of these General Conditions, for a period of three (3) years after Acceptance of the Work, all estimates and payments made pursuant to said Section 7-1.10, are subject to correction for clerical errors in the calculations involved in the determination of quantities and payments. The Contractor and the City agree to pay to the other any sum due under the provisions of this Section 7-1.11, provided, however, if the total sum to be paid is less than $100, no such payment shall be made.
7-1.12 WARRANTY. Notwithstanding inspections and Acceptance by the City of Work furnished under the Contract Documents, the Contractor hereby unconditionally guarantees that all materials and equipment furnished will be of good quality and new, that the Work will be free from defects in workmanship and materials and that the Work will conform to the requirements of the Contract Documents. Work not conforming to these requirements, including substitutions not properly approved and authorized, may be considered defective.
GC - 7:15
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] This warranty by the Contractor is in addition to any warranties or guarantees required elsewhere in the Contract Documents. This warranty shall be in effect notwithstanding any disclaimers, or limiting or conditional terms contained in such separate warranties furnished by manufacturers or suppliers.
The Contractor hereby agrees to repair or replace any and all Work, together with any other adjacent Work which may be displaced in so doing, that may prove to be not in accordance with the requirements of the Contract or that may be defective in its workmanship or material during the greater of a period of one (1) year after Acceptance of the Work by the City or the period specified in the Special Conditions, without any expense whatsoever to the City, ordinary wear and tear and unusual abuse or neglect excepted.
The Contractor further agrees, that within ten (10) Days after being notified in writing by the Department of any Work not in accordance with the requirements of the Contract Documents or of any defects in the Work, the Contractor will commence and prosecute with due diligence all Work necessary to fulfill the terms of this warranty, and to complete such Work within a reasonable period of time. In the event Contractor fails to comply, it does hereby authorize the Department to proceed to have such Work done at the Contractor's expense and the Contractor will honor and pay the cost and charges therefore upon demand. The Department shall be entitled to all costs and expenses, including reasonable attorneys’ fees, necessarily incurred upon the Contractor's refusal to honor and pay the above costs and charges.
All warranties set forth in the Contract Documents shall be deemed cumulative and not alternative or exclusive. Nothing contained in this section shall be construed to establish a period of limitation with respect to any other obligation, which Contractor has under the Contract Documents or under any separate warranty or guaranty required thereby. The establishment of a GC - 7:16
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] specific warranty period relates only to the specific obligation of Contractor to correct defective Work, and it has no relationship to the time within which its obligation to comply with the Contract Documents or applicable provision of law may be sought to be enforced, nor to the time within which proceedings may be commenced to establish Contractor’s liability with respect to its obligations other than specifically to correct the Work. Without limiting the foregoing, it is understood and agreed that Contractor shall remain responsible for latent defects with its work, regardless of the expiration of any warranty period set forth in the Contract Documents. 7-1.13 WARRANTY OF TITLE. No material, supplies, or equipment for the Work under this Contract shall be purchased subject to any chattel mortgage, security agreement, or under a conditional sale or other agreement by which an interest therein or any part thereof is retained by the seller or supplier. The Contractor warrants good title to all material, supplies, and equipment Installed or incorporated in the Work and agrees upon completion of all Work to deliver the Premises, together with all improvements and appurtenances constructed or placed thereon by it, to the City free from any claim, liens, security interest, or charges, and further agrees that neither the Contractor nor any person, firm, or corporation furnishing any materials or labor for any Work covered by this Contract shall have any right to a lien upon the Premises or any improvement or appurtenances thereon. Provided, that this shall not preclude the Contractor from Installing metering devices and other equipment of utility companies, the title of which is commonly retained by the utility company. In the event of the Installation of any such metering device or equipment, the Contractor shall advise the City as to the legal owner thereof. Nothing contained in this paragraph, however, shall defeat or impair the right of such persons furnishing materials or labor under any bond given by the Contractor for their protection or any rights under any law permitting such persons to look to funds due the Contractor in the hands of the City.
GC - 7:17
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] The provisions of this paragraph shall be inserted in all subcontracts and material Contracts, and notice of its provisions shall be given to all persons furnishing materials for the Work when no formal Contract is entered into for such materials.
[END OF GENERAL CONDITIONS]
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
SUPPLEMENTAL CONDITIONS
Industrial Substation 12kV Switchgear 1 Replacement
SC - 1
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
Scope of Supplemental Conditions
1. The Work shall be performed in accordance with the General Conditions and Department Standards, except as the General Conditions may be modified by the following additional City Standards, incorporated herein by this reference, if so indicated.
COMMUNITY DESIGN GUIDELINES
311 Vernon Street, Roseville, CA 95678
X SPECIFICATIONS FOR COMMERCIAL
CONSTRUCTION (ELECTRIC)
2090 Hilltop Circle, Roseville, CA 95747
PARKS CONSTRUCTION STANDARDS
316 Vernon Street, Suite 400, Roseville, CA 95678
DESIGN AND CONSTRUCTION STANDARDS
311 Vernon Street, Roseville, CA 95678
OTHER
Above documents are available at: www.roseville.ca.us.
2. Numbering in these Supplemental Conditions conforms to that in the General Conditions. The existence of a section in these Supplemental Conditions means that the corresponding section in the General Conditions is modified in some respect. Unless otherwise specified, the modified General Condition is deleted entirely and the provisions of these Supplemental Conditions are substituted.
SC - 2
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
SECTION 1. DEFINITIONS AND TERMS
1-1.24 DEPARTMENT. Section 1-1.24 of the General Conditions is amended to include the following:
The Department for Contract Administration is the Electric Department of the City of Roseville.
SC - 3
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
SECTION 2. CONTROL AND SCOPE OF THE WORK
2-1.08 SUBMITTALS. Section 2-1.08 of the General Conditions is amended to include the following:
The time allowed for review of each submittal is 5 Days after receipt of the submittal by the Director.
SC - 4
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
SECTION 3. CHANGES IN THE WORK
There are no amendments to the General Conditions.
SC - 5
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
SECTION 4. CONTROL OF MATERIALS
There are no amendments to the General Conditions.
SC - 6
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
SECTION 5. LEGAL RELATIONS AND RESPONSIBILITY
5-1.14 AIR POLLUTION CONTROL AND ASBESTOS. Section 5-1.14 of the General Conditions is amended to include the following:
To the best of the City's knowledge, asbestos is not present in the vicinity of the Project. Additional information shall be made available to Contractor upon request.
SC - 7
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
SECTION 6. PROSECUTION AND PROGRESS
6-1.04 PROGRESS SCHEDULE. Section 6-1.04F of the General Conditions is amended to include the following:
Progress schedules showing project completion dates more than 30 Days earlier than specified in Section 6-1.07 shall be rejected.
6-1.07 TIME OF COMPLETION. Section 6-1.07 of the General Conditions is amended to include the following:
The Contractor shall begin Work within 5 business days after receiving a Notice to Proceed and shall diligently prosecute the Work to completion. The Work shall be completed within 80 business days of the Notice to Proceed.
If landscaping plants require an establishment period, that period will be 60 calendar days. Start of the establishment should be as outlined in the Specifications. 6-1.08 LIQUIDATED DAMAGES. Section 6-1.08 of the General Conditions is amended to include the following:
The amount of Liquidated Damages is the sum of $500 per Day.
SC - 8
[\\HILLTOP3\Divisions$\Engineering\CIP\Industrial 1 SWGR Replace\Project Manual\Civil\supplemental conditions buildings and grounds.docx; 4/14/2022]
SECTION 7: ACCEPTANCE AND PAYMENT
There are no amendments to the General Conditions.
[END OF SUPPLEMENTAL CONDITIONS]
AB 626 - 1
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] TEXT OF AB 626
Assembly Bill No. 626
CHAPTER 810
An act to add and repeal Section 9204 of the Public Contract Code, relating to public contracts.
[Approved by Governor September 29, 2016. Filed with Secretary of State September 29, 2016.]
LEGISLATIVE COUNSEL’S DIGEST
AB 626, Chiu. Public contracts: claim resolution.
Existing law prescribes various requirements regarding the formation, content, and enforcement of state and local public contracts. Existing law applicable to state public contracts generally requires that the resolution of claims related to those contracts be subject to arbitration.
Existing law applicable to local agency contracts prescribes a process for the resolution of claims related to those contracts of $375,000 or less.
This bill would establish, for contracts entered into on or after January 1, 2017, a claim resolution process applicable to any claim by a contractor in connection with a public works project. The bill would define a claim as a separate demand by the contractor for one or more of the following: a time extension for relief from damages or penalties for delay, payment of money or damages arising from work done pursuant to the contract for a public work, or payment of an amount disputed by the public entity, as specified.
This bill would require a public entity, defined to exclude certain state entities, upon receipt of a claim sent by registered or certified mail, to review it and, within 45 days, provide a written statement identifying the disputed and undisputed portions of the claim. The bill would authorize the 45-day period to be extended by mutual agreement. The bill would require any payment due on an undisputed portion of the claim to be processed within 60 days, as specified. The bill would require that the claim be deemed rejected in its entirety if the public entity fails to issue the written statement.
This bill would authorize, if the claimant disputes the public entity’s written response or if the public entity fails to respond to a claim within the time prescribed, the claimant to demand to meet and confer for settlement of the issues in dispute. The bill would require any disputed portion of the claim that remains in dispute after the meet and confer conference to be subject to nonbinding mediation, as specified. The bill would provide that unpaid claim amounts accrue interest at 7% per annum. The bill would prescribe a procedure by which a subcontractor or lower tier contractor may make a claim through the contractor.
This bill would require the text of these provisions, or a summary, to be set forth in the plans or specifications for any public work which may give rise to a claim. The bill would specify that a waiver of these rights is void and contrary to public policy, except as specified. The bill would also specify that it does not impose liability on a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.
AB 626 - 2
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] By increasing the duties of local agencies and officials, this bill would impose a statemandated local program.
This bill would, on January 1, 2020, repeal the provision establishing the claim resolution process.
This bill would specify that these provisions constitute a matter of statewide concern.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
The people of the State of California do enact as follows:
SECTION 1. Section 9204 is added to the Public Contract Code, to read:
9204. (a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project. (c) For purposes of this section:
(1) ”Claim” means a separate demand by a 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 assessed 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, the 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 public entity. (2) ”Contractor” 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 has entered into a direct contract with a public entity for a public works project. (3) (A) ”Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city, including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency. (B) ”Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department.
(ii) The Department of Transportation as to any project under the jurisdiction of that department.
AB 626 - 3
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department.
(iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code.
(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) ”Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) ”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 a contractor or is a lower tier subcontractor. (d) (1) (A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision. (B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2) (A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute.
(B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant 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 AB 626 - 4
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. (C) For purposes of this section, mediation includes 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. Any mediation utilized shall conform to the timeframes in this section. (D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced. (E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
(5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity 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 to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.
(e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section 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) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.
(g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.
(i) This section shall remain in effect only until January 1, 2020, and as of that date is AB 626 - 5
[E:\agreement\form agreements\Project Manuals\buildings & grounds.docx; 4/11/2019] repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.
SECTION 2.
The Legislature finds and declares that it is of statewide concern to require a charter city, charter county, or charter city and county to follow a prescribed claims resolution process to ensure there are uniform and equitable procurement practices.
SECTION 3.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SPECIFICATION
INDUSTRIAL 1 SWITCHGEAR CIVIL CONSTRUCTION
CONSTRUCTION SPECIFICATION
TABLE OF CONTENTS
1. SCOPE OF WORK
2. GENERAL PROVISIONS
3. DRAWING LIST
4. EXISTING SITE CONDITIONS
5. CONSTRUCTION SURVEYING
6. SITE PREPARATION AND GRADING
7. EARTHWORK AND COMPACTION
8. EXCAVATION AND BACKFILLING FOR TRENCHES AND FOUNDATIONS
9. UNDERGROUND CABLE CONDUITS AND TRENCHES
10. GROUNDING SYSTEM
11. REINFORCED CONCRETE FOUNDATIONS
12. CAST-IN-PLACE CONCRETE
13. CRUSHED ROCK SURFACING
14. AGGREGATE BASE
15. FENCING
16. EROSION AND SEDIMENT CONTROL
2 1. SCOPE OF WORK
1.1 This Specification covers the labor, supervision and materials required for the following projects:
1.1.1 This project consists of the following: clearing and grubbing of designated existing concrete foundations, construction of new reinforced concrete foundation, construction of a ramp and stairs, installation of underground electrical conduits, extension of the existing concast trench system, grounding and grounding pigtails as shown on drawings and as needed, and repair of any part of the substation yard that is disturbed.
1.2 Work Included: Contractor shall perform all labor, coordination, supervision, surveying, inspection, site and laboratory testing that is required to construct the needed items. All labor, material, testing and associated construction costs are the responsibility of the Contractor unless specifically stated otherwise.
The principal components of the work include, but are not limited to the following:
1.2.1 Establish the reference and boundary lines.
1.2.2 Demo reinforced concrete switchgear foundation as shown on the drawings.
1.2.3 Construct concrete foundation for the new equipment as shown on the drawings.
1.2.4 Furnish and install underground low voltage control wiring conduits, junction boxes and reconfigure existing conduits as shown on drawings.
1.2.5 Repair substation grounding system as necessary for excavation and construction of concrete foundation.
1.2.6 Remove and dispose of all surplus materials including surplus excavated materials from sites.
1.2.8 Extend/modify the existing concast trench system as shown on the drawings.
1.2.9 Reconstruct conduits as needed for outgoing distribution circuits
1.2.10 Install new grounding and grounding pigtails as shown on the drawings.
1.2.11 Stairs and ramp must be constructed after the switchgear building is set on the foundation
1.2.12 Supply and implement necessary BMP’s for erosion and sediment control.
1.3 This Specification shall be used together with the following:
3 1.3.1 Construction drawings listed in Section 3.
1.3.2 The Supplemental Conditions.
1.3.3 Roseville Electric Specifications for Commercial Construction.
1.3.4 Other standard specifications.
1.3.5 General Conditions for Buildings and Grounds.
In case of any conflicts between the requirements stated above, the order of precedence shall be as follows:
A. Construction drawings listed in Section 3 (highest).
B. The Supplemental Conditions.
C. This Specification.
D. Other standard specifications.
E. General Conditions for Buildings and Grounds.
2. GENERAL PROVISIONS
2.1 Contractor shall examine the site and determine the amount, nature and difficulty of the proposed work. Contractor shall evaluate the requirements of the plans, specifications, bid package and existing conditions and bid accordingly. Contractor shall satisfy himself/herself of the soil conditions prior to bidding this project. The contract price shall be based on a lump sum basis.
2.2 If there is a doubt as to the true meaning of any part of the plans, specifications, or the contract documents or if discrepancies in or omissions from the drawings or specifications are found, a written request should be made to the City for interpretation. No payment will be made to the Contractor because of error, negligence or failure to become familiar with the existing conditions or requirements of the plans, specifications and bid package.
2.3 The safety of all materials and labor used in this project is left solely to the Contractor.
Any loss due to weather, acts of God, vandalism, theft, poor workmanship, or any other loss is the responsibility of the Contractor and it is assumed to be part of this bid and bid price. City will not be responsible for the loss of any material and/or labor.
2.4 Appropriate tarps and covers shall be used to protect all open trenches, excavations and removed materials that are planned to be used for backfill from wind, rain and other 4 weather conditions.
2.5 Underground Service Alert (USA) must be called before any digging is started. The phone number of USA is 1-800-642-2444. There are existing underground installations in the working area including electrical power cables installed by the City, water and sewer lines, gas and telephone facilities. The as-built drawings are available for inspection at the Electric Department. These drawings are not exact and the Contractor agrees to hold the City harmless for any errors that may be on the plans or for any damage that the Contractor may do to existing facilities due to the plans. Any damage to existing underground facilities including the electrical power cables or to the conduit system done by the Contractor is the complete responsibility of the Contractor. There are existing underground conductors energized at 12,000 volts on and adjacent to this site.
2.6 There are existing exposed 60-kV energized conductors above the working areas. All work under these exposed conductors shall be restricted at ground level only. Outage and clearance must be pre-arranged with Roseville Electric before working in close proximity to the live conductors. Overhead conductors will not be removed to allow access for drilling equipment. Drilling equipment must be of a height as to not interfere or damage overhead conductors.
2.7 All work inside the existing energized Industrial Substation will be under the supervision of City of Roseville Electric Department's representative to ensure all relevant safety procedures are followed.
2.8 If work is performed within 10 feet of normally energized equipment, suitable type of protective clothing shall be used by all persons per specification 2.9 below. The 10 feet is not the reach distance. It is measured as a footprint with a 10-foot perimeter around all normally energized equipment including wire, overhead line, bus and underground cable.
Inside this perimeter, approved FR protective clothing shall be worn. When working at ground level only in an area without any aboveground energized conductors, if the work does not dig in or expose any underground live cables, the FR clothing requirement may be waived with the approval from Roseville Electric site supervisor or Engineer.
2.9 When working within the 10-foot perimeter of energized equipment as defined by 2.8 above, no clothing made from acetate, nylon, polyester, and rayon alone or in blends shall be worn. Clothing or underwear worn next to the skin shall be made of FR material or natural fibers. Caution – some of the new synthetic materials melt at temperatures as low as 140 deg. C. Personnel that may be exposed to an electric arc shall wear the FR shirt rated at 8 ATPV over 100% cotton T-shirt in conjunction with FR pants rated at 8 ATPV.
Worn and threadbare denim pants do not have the ignition or protective level required shall not be worn. The FR shirt sleeves shall be rolled down and secured at the wrist when exposed to the potential thermal hazard area.
2.10 Contractor shall coordinate and comply with the statutory requirements of all relevant 5 authorities for the due and lawful prosecution of the work. The contractor shall be liable for all monetary fines assessed during construction due to non-compliance on the part of the contractor and subcontractors.
2.11 Unless otherwise approved by the Engineer, the normal working hours shall be limited to Monday through Friday, excluding City's holidays, between 7 a.m. and 3:30 p.m.
2.12 Contractor shall preserve the existing landscape surrounding the substation site. Any damage done to the landscaping in the surrounding area by the Contractor shall be repaired to the City’s satisfaction at the cost of the Contractor. This cost is assumed to be part of this bid and bid price.
2.13 Except as otherwise provided in Section 2.14, Contractor shall furnish all materials, utilities, electrical power, supplies, tools, construction equipment, temporary traffic facilities, and all items of consumable nature that are required to complete the work.
2.14 The following lists the items that will be furnished by the City:
2.14.1 Anchor bolts for the 12kV Switchgear.
2.15 A mandatory prebid meeting will be held in accordance with meeting details posted on the Public Purchase website which will include an inspection of the project site. FR clothing per sections 2.8 and 2.9 shall be required for the on-site inspection.
2.16 Contractor Submittals and Qualification- Along with the bid submittal, contractor shall provide a list of substation projects for Electric Utilities only that have been completed in last fifteen years. The project list shall include scope of work, total contract amount, change orders and number of weeks to complete the entire project. The client list shall include the name, address and contact phone numbers of all companies for which the contractor has previously built related projects. Contractor and its foreman or supervisor assigned for this project must have performed construction projects in at least three electric substations at 60- kV or above, during the last fifteen years. Please identify the name and location of your three most recent electric substation projects. Bids will be rejected by any Contractor that does not meet these requirements/qualifications.
2.17 Time of Completion: The Contractor shall perform all specified work within the following number of days after the date on the Notice to Proceed.
2.17.1 Work to take place approximately between early September and early October 2022:
Begin Site Construction 5 calendar days
Switchgear Foundation 20 calendar days
Conduit, Concast Trench, Ground Grid 10 calendar days
6 2.17.2 Work to take place approximately in November 2022:
Stair and Ramp Construction 5 calendar days
2.18 Prevailing Wages and DIR Registration Notice - A portion of the services described herein are for publicly funded projects, considered “public works” as defined by California Labor Code Section 1720 et seq. Any Contractor awarded a contract as the result of this bid shall be responsible for compliance with all applicable prevailing wage laws, as well as any and all applicable state or federal wage laws, for services performed under any resulting contract. Fee schedules must differentiate hourly rates for public works and private development projects and be consistent with applicable prevailing wage requirements.
Provide documentation verifying that your firm and any sub-consulting firm is registered with the Department of Industrial Relations (DIR), including the Public Works Contractor (PWC) Registration Number for all firms. Consultants are hereby notified that this agreement and task agreements hereunder are, as applicable, subject to compliance monitoring and enforcement by DIR.
2.19 Mitigation Monitoring and Reporting –
Mitigation Measure CR-1 (Previously Unidentified Cultural Resources) (a) Construction shall stop if potential cultural resources are encountered. It is possible that previous activities have obscured surface evidence of cultural resources. If signs of an archeological site, such as any unusual amounts of stone, bone, or shell, are uncovered during grading or other construction activities, work shall be halted within 100 feet of the find and the Roseville City Manager’s Office shall be notified. A qualified archeologist shall be consulted for an on-site evaluation. If the site is or appears to be eligible for listing in state or federal registers, additional mitigation, such as further testing for evaluation or data recovery, may be necessary.
(b) In the event resources are discovered, the City shall request a qualified archaeologist assess the find and determine whether the resource requires further study. Any previously undiscovered resources found during construction should be recorded on appropriate Department of Parks and Recreation (DPR) 523 forms and evaluated for significance under all applicable regulatory criteria. (c) No further grading shall occur in the area of the discovery until the City approves the measures to protect the resources. Any archaeological artifacts recovered as a result of mitigation shall be donated to a qualified scientific institution approved by the Lead Agency where they would be afforded long-term preservation to allow future scientific study.
7 Mitigation Measure CR-2 (Previously Unidentified Paleontological Resources) If substantial fossil remains (particularly vertebrate remains) are discovered during earth-disturbing activities on the project site, activities will stop immediately until a state-registered professional geologist or qualified professional paleontologist can assess the nature and importance of the find and a qualified professional paleontologist can recommend appropriate treatment.
Treatment may include preparation and recovery of fossil materials so that they can be housed in an appropriate museum or university collection and may also include preparation of a report for publication describing the finds. The applicant will be responsible for ensuring that recommendations regarding treatment and reporting are implemented.
Mitigation Measure CR-3 (Inadvertent Discovery of Human Remains) If human remains are discovered during any phase of construction, including disarticulated or cremated remains, the construction contractor shall immediately cease all ground-disturbing activities within 100 feet of the remains and notify Terri Shirhall, Environmental Coordinator, City of Roseville Development Services.
In accordance with California State Health and Safety Code Section 7050.5, no further disturbance shall occur until the following steps have been completed:
(a) The County Coroner has made the necessary findings as to origin and disposition pursuant to Public Resources Code (PRC) § 5097.98. (b) If the remains are determined by the County Coroner to be Native American, the NAHC shall be notified within 24 hours, and the guidelines of the NAHC shall be adhered to in the treatment and disposition of the remains. It is further recommended that a professional archaeologist with Native American burial experience conduct a field investigation of the specific site and consult with the Most Likely Descendant (MLD), if any, identified by the NAHC. As necessary and appropriate, a professional archaeologist may provide technical assistance to the MLD, including but not limited to, the excavation and removal of the human remains.
3. DRAWING LIST
315C1-03 Industrial Substation Switchgear 1 Foundation Detail 315C1-13 Industrial Substation Location Plan
315C1-17 Industrial Substation Conduits, Trenching and Lighting 315C1-22 Industrial Substation Grounding Plan
315C1-26 Industrial Substation Conduit Layout
315C1-27 Industrial Substation Containment and Grading
8 315C1-34 Industrial Substation Stair/Ramp Details
390C1-07 Example Foundation for 12kV Switchgear
4. EXISTING SITE CONDITIONS
4.1 Existing underground electrical cables energized at 12,000 volts and other control cables are on both sites.
4.2 The existing sites have been graded. After modification work for the project, all area must be restored to the original grading.
4.3 Soils investigation has been carried out in the vicinity, approximately 2100 feet to the south of the substation. A copy of the Geotechnical Report has been provided as a reference.
4.4 Topographic Survey has not been conducted on the site.
5. CONSTRUCTION SURVEYING
5.1 The Contractor shall lay out all proposed improvements in accordance with the plans and these specifications.
5.2 The final placement of all proposed improvements shall be coordinated in the field with the designated Roseville Electric representative.
6. SITE PREPARATION AND GRADING
6.1 Contractor shall prepare the site in accordance with the drawings and these specifications.
Site preparation shall include clearing of existing debris, grading and sub-grade preparation. All trench work must be inspected by Roseville Electric before backfilling.
6.2 Sub-grade preparation shall include areas that will receive crushed rock and aggregate base.
6.3 The area within the limits of the substation site shall be cleared and graded.
6.4 Clearing shall consist of removal of debris, vegetation, waste, or other unacceptable subgrade material.
6.5 Grading shall include construction of embankment, cutting, shaping, blading, and rolling and all other operations necessary to achieve the proposed elevations, slope and compaction.
9 6.6 The intent of the grading information shown on the drawings is to provide for a free draining surface.
6.7 Grade tolerance for sub-grade and cut or fill slopes shall be plus or minus one inch from the finished elevation shown on the drawings. However, the tolerance shall not create small pools or otherwise affect the intent of the free draining surfaces.
7. EARTHWORK AND COMPACTION
7.1 Immediately prior to surfacing, the sub-grade shall be shaped to the grade and cross section indicated on the drawings. The top six inches of the sub-grade shall be compacted to 95 percent of maximum density at optimum moisture content as determined by ASTM D698 when that test is appropriate, or to 70 percent relative density as determined by ASTM D4253 and D4254 when these tests are appropriate. This operation shall include any scarifying, reshaping, and wetting required to obtain proper compaction.
Soft, organic, and otherwise unsuitable material shall be removed from the sub-grade and replaced with suitable material approved by the Engineer.
7.2 Any deviation of the sub-grade surface in excess of one inch as indicated by a sixteenfoot straightedge, or template cut to typical section, shall be corrected by loosening, adding or removing material, reshaping, and recompacting.
7.3 In cut areas and in areas of less then six inches of compacted fill, the top six inches shall be scarified and thoroughly mixed by discing or blading and watered or aerated as necessary to achieve optimum moisture content. It shall be compacted to 95% relative density.
7.4 Where compacting earth materials is required, materials shall be deposited in horizontal layers and compacted as specified.
7.5 The soil compaction tests shall be performed by an independent testing laboratory approved by the Engineer. The laboratory shall be retained by the Contractor and all costs for laboratory services shall be paid by the Contractor.
8. EXCAVATION AND BACKFILL FOR TRENCHES AND FOUNDATIONS
8.1 Excavation, backfill, and compaction for trenches and structures shall be in accordance with the drawings and these specifications.
8.2 All excavation shall be to the lines and grades required for foundations, conduits, grounding and other facilities. Excavation shall be large enough to allow form removal and working space to backfill and compact.
10 8.3 The bottom of excavations for foundations shall be a smooth plane with the top six inches compacted to 95 percent relative density. The bottom of drilled holes shall be free of loose or disturbed soil.
8.4 Any over excavation and resultant backfilling, compacting, or concreting will be considered as incidental work and included in the bid prices.
8.5 Backfill shall be free of organic matter, large rocks or any other deleterious material.
Rocks or clods larger than 1-1/2 inches in diameter will not be allowed within 6 inches of any conduit or ground wire. All backfill will be subject to the approval of the Engineer.
Backfill shall be watered and aerated to an optimum moisture content in successive lifts not to exceed six inches and compacted to relative density of 95 percent.
8.6 No backfill shall be made until the work to be covered has been approved by the Engineer. External back filling materials must be approved by the Engineer before use.
8.7 Contractor shall locate, protect, shore, brace, support, and maintain all existing underground pipes, conduits, drains, and other underground construction which may be uncovered or otherwise affected by the work.
8.8 Existing improvements and underground facilities have been plotted from the best information available. However, this information is not complete or accurate. There may be additional existing facilities. The utility information shown on the plans shall not relieve the Contractor of the responsibility of using caution and good judgment. It is the responsibility of the Contractor to ascertain the exact location of all existing facilities and to avoid damaging them.
8.9 Existing improvements that are damaged shall be replaced to an original or better condition. All repair and restoration shall be to the satisfaction of the City of Roseville.
8.10 Excavation by machinery shall be approved by the Engineer or City's Electric Department representative in consideration of the safe electrical working clearances and close proximity to the existing energized conductors and underground conduits. The contractor must pot-hole and locate the exact location of the underground 12-kV conduits before any excavation and drilling near the cables location identified by the Electric Department as part of the USA requirements.
8.11 All work shall be carried out effectively and tidily to ensure minimum inconvenience to the substation operation. All drains and gullies shall be kept clear of excavation materials at all times.
8.12 Drilling equipment for drilling the pier foundations shall have sufficient power for drilling the piers in the soil conditions present on site. The Geotechnical Report is included in this manual. Drilling equipment must also comply with the height 11 requirements referenced in Section 2.6.
9. UNDERGROUND CABLE CONDUITS AND TRENCHES
9.1 The underground power cable and control cable conduits and trench system shall be installed as shown on the drawings and the requirements stated in the City of Roseville Specifications for Commercial Construction.
9.2 Power conduits and couplings shall be minimum Schedule 40 PVC. The solvent used shall be in accordance with ASTM-2564 for PVC. All conduits shall be blown free of water and debris. A 1/2" diameter nylon pull rope shall be provided for each conduit and shall comply with Page 2.1 of Roseville Electric’s Construction Standards.
9.3 All conduits shall be proven by a proving mandril equal to 80 percent of the conduit diameter. The proving tests shall be witnessed and approved by the Engineer or his representative.
9.4 Conduits requiring encasement shall use a minimum of two-sack sand slurry per Caltrans Standard Spec 19-3.062. The encasement shall cover at least three inches on any side of the conduits. All conduit outlets must be set perfectly vertical or inclined at an angle at the bottom of the trench to the direction as showed on the drawings.
10. GROUNDING SYSTEM
10.1 Contractor shall locate the existing grounding conductors as shown on the Drawings. The contractor shall provide the grounding conductors, welding materials and perform the connections to the ground grids.
10.2 The Contractor shall install ground rods, grounding conductors and pig-tails for the equipment structures as shown on the Drawings.
10.3 All grounding grid conductors and rods shall be connected by exothermal welding, e.g.
Cadweld or approved equivalent.
10.4 If the location of any concrete foundations or piers conflicts with the existing grounding conductors, the location of the foundations shall have priority. The grounding conductors shall be rerouted so that they do not pass through any concrete foundation.
10.5 The reconfiguration of any grounding conductors to avoid concrete foundations shall be approved by the Engineer or his representative.
11. REINFORCED CONCRETE FOUNDATIONS
11.1 The Contractor shall construct the reinforced concrete foundations in accordance with the 12 drawings and these specifications.
11.2 The foundation shall be accurately located, sized and plumbed. The maximum variation of any foundation from its designed location shall not be more than two (2) inches. The variation of the top surface of all foundations shall not exceed 1/8 inch in 12 feet. All edges shall be chamfered. The Contractor shall employ a licensed surveyor to stake the foundation locations and to check the tolerance of the top surface of the foundations.
11.3 The surplus excavated materials shall become the property of the Contractor and shall be removed from the site. All excavation shall be made to the lines and grades shown on the drawings. The bottom surface of the excavation shall be free of loose or disturbed material. Any over excavation and resulting backfilling, compacting, or concreting shall be considered incidental. No separate payment will be made.
11.4 No classification of excavated materials will be made except for identification purposes.
Foundation excavation shall include the removal and subsequent handling of all materials encountered in excavating the foundation to the depth required.
11.5 Blasting will not be permitted on the site.
11.6 The steel support structure foundation piers shall be drilled with an auger in earth and with a rock drill in rock. Casings shall be used where the sides of the excavation are unstable and may be used at all locations. Drilling equipment shall be designed to drill straight and clean holes. Casings, if used, shall be installed as the drilling proceeds or immediately after the auger is withdrawn as required to prevent sloughing and caving of the excavation walls. Contractor may elect to advance the excavation and facilitate the removal of cuttings by utilizing a densified fluid.
11.7 Casings shall be of steel or fiber construction and shall be of ample strength to withstand handling and installation stresses. Casing shall be removed as the concrete is placed. The casing extraction shall be facilitated by the use of a vibratory extractor. During removal the casing shall be continually plumb and the concrete surface within the casing shall be continually observed for maintenance of concrete "head" sufficient to offset the external water head of the casing. A minimum head of 4 to 5 feet of concrete shall be maintained above the bottom of the casing during casing extraction.
11.8 Control joints shall be placed on foundations as shown on the drawings. The Burke "Key Kold Joint" compound or equal shall be used.
11.9 Concrete work for foundation shall conform to the requirements of the section entitled "Cast-in-Place Concrete" and to these additional requirements. Concrete shall reach a minimum compressive strength of 3,500 psi in 28 days unless otherwise specified on the drawings. For each cement truck load only, Contractor shall employ an independent testing laboratory to take concrete samples at the job site and to perform compression 13 testing at 14 and 28 days for compliance with these specifications. One test shall be performed on each batch of concrete. The testing laboratory shall be approved by the Engineer.
11.10 All water and loose materials shall be removed from the holes before any concrete is placed. Foundation holes shall be dry except as specified hereinafter. No concrete shall be poured without prior inspection by City Engineer.
11.11 Concrete shall be placed with a tremie or funnel to prevent segregation and the top six feet shall be rodded or vibrated to provide a dense mass free of voids. As placed, the concrete shall have a slump between 2-1/2 and 4 inches. During the filling of the holes, if water begins to accumulate on the top of the concrete, the amount of water in succeeding batches shall be reduced. Should there be an accumulation of scum or laitance on the top of the concrete, it shall be removed and additional concrete shall be placed to bring the foundation back to the proper elevation.
11.12 When the concrete pour is started, it shall be completed in a continuous process. A sufficient quantity of concrete to fill the foundation shall be in delivery trucks at the foundation site when the first concrete is poured. If the pouring of any foundation is suspended for more than 30 minutes before the foundation is completed, laitance and water shall be removed from the joint surface and the joint surface shall be coated with epoxy bonding compound before concreting is resumed. In order to provide for an emergency stoppage, bonding compound shall be at the site before the concreting of foundations is started.
11.13 Foundations shall be reinforced as indicated on the drawings and all reinforcements shall be installed and secured to prevent shifting during the placement of concrete. Anchor bolt cages for steel pole foundations shall be installed plumb and within 1/8 inch of their specified plan location. The upper portion of the foundations shall be formed where indicated on the drawings. Shores and frames shall remain in place a minimum of two days and may be removed only when the concrete has reached a strength capable of supporting its weight safely. Each foundation shall be cured for at least 7 days by continuous saturation with water or the use of membrane curing compound as specified in the section entitled "Cast-in-Place Concrete" unless otherwise specified.
11.14 Records shall be kept by the Contractor indicating the exact volume of each foundation excavated and this volume shall then be compared to the volume of concrete actually placed in each foundation. A lesser amount of concrete placed than calculated may indicate faulty foundation construction. In the event of such an occurrence, the Engineer shall be notified, and immediate remedial action shall then be taken by the Contractor.
11.15 Concrete shall not be deposited under water except with specific permission of the Engineer.
14 For concrete deposited under water, the limiting requirements shall be adjusted to provide not more than six inches of slump and to increase the cement factor by one sack per cubic yard. Any extra charges for these changes by the concrete supplier shall be borne by the Contractor.
Underwater concrete shall be placed through tremies. The tremies shall be equipped with a tremie seal at the lower end and a hopper at the upper end. The tremie shall be watertight and large enough to allow a free flow of concrete. After the flow of concrete is started, the lower end of the tremie shall be kept below the surface of the deposited concrete. Agitation of the deposited concrete shall be avoided. When necessary to move laterally, the tremie shall be lifted free of the concrete and lowered vertically at the new location. The entire mass of concrete shall be placed as quickly as possible so that it will flow into place without the necessity of horizontal shifting below water.
The water shall be quiescent when concrete is deposited therein. After placing, the ground water level in the area adjacent to the foundation shall be kept static until the concrete has taken its initial set.
11.16 The anchor bolt cage and the rebar cage shall be clean, dry and free of rust, dirt and oil.
Anchor bolt cage may be welded to hold its shape. The rebar cage shall NOT be welded.
No welds will be permitted for the rebar cage.
11.17 Any Anchor bolts for the foundations supplied by the contractor shall conform to ASTM A-307 and be galvanized in accordance with ASTM A-153.
12. CAST-IN-PLACE CONCRETE
12.1 General. This section covers cast-in-place concrete and includes reinforcing steel, forms, finishing, curing, grouting, and other appurtenant work. Contractor shall submit concrete mix specifications prior to ordering to the City Engineer in order to confirm it complies with these specifications.
Cast-in-place concrete shall be in accordance with the latest applicable requirements of the Federal Specifications, ACI, ASTM, and CRSI, except as modified by these specifications.
12.2 Materials. Materials shall be in accordance with these requirements:
Cement: ASTM C150, Type I & II
Fine Aggregate: Clean natural sand, ASTM C-33
Coarse Aggregate: Crushed stone, washed gravel, or other acceptable inert granular material conforming to ASTM C-33.
15 Maximum size of aggregate to be 3/4".
Water: Clean and free from deleterious substances.
Air-entraining Agent: ASTM C260
Plasticizing Retarder: ASTM C494, Type B or D
Plasticizer: ASTM C494, Type A
Reinforcing Steel Bars: ASTM A615-85, Grade 60
Forms:
Plywood: Product Standard PSI, waterproof, resin-bounded, exterior type Douglas Fir.
Lumber: Straight, uniform width and thickness, and free from knots, offsets, holes, dents, and other surface defects.
Chamfer Strips: Clear pine, surface against concrete shall be planed.
Form Oil: Light colored paraffin oil or other acceptable non-staining material.
13. CRUSHED ROCK SURFACING
13.1 Contractor shall furnish and restore crushed rock in accordance with the drawings and these specifications. Rock shall be washed and a uniform size of 3/4-inch with 100% fractured faces. The rock shall be clean and free of deleterious materials for its intended use. The rock surfacing shall have a minimum thickness of six inches or as indicated on the drawings.
13.2 Prior to applying the crushed rock surfacing, the Contractor shall apply weed eradicator and soil fumigant in strict accordance with the manufacturer's instructions. Contractor is cautioned to apply weed eradicator and soil fumigant only to the crushed rock surfacing areas and to refrain from applying such material when conditions may cause drifting to areas which are not to be treated.
13.3 The rock surfacing shall be smooth, hard and tight and free draining. Rock shall be spread evenly without humps or depressions.
14. AGGREGATE BASE
16 14.1 Contractor shall furnish, place and compact aggregate base in accordance with the drawings if required for touch up area. The materials and application of aggregate base shall comply with Section 26 of the CALTRANS "Standard Specifications", latest edition, and these specifications.
14.2 The subgrade shall be prepared in accordance with Section 7, Earthwork and Compaction.
14.3 The aggregate base shall be compacted, trimmed and shaped by blading and rolling to produce a hard and tight surface. The finish surface shall be true to grade and free of segregation, irregularities, depression, or loose material. The compacted aggregate base shall have a uniform thickness of six (6) inches. The surface of the aggregate base shall not vary more than 0.05-foot above or below the grades shown on the drawings. The relative compaction for aggregate base shall not be less than 95 percent. The maximum aggregate size shall be 3/4-inch.
15. FENCING
15.1 The location of the alterations to the substation fencing shall be as shown on the drawings.
15.2 The contractor shall utilize temporary fencing as required to maintain the security of the substation. This may be taken down as necessary while work is actively being performed but must be in place at the end of the workday.
15.3 For the existing fencing that is being removed, the concrete foundations and grounding conductors shall be removed also.
15.4 The portion of interior fencing that is being added shall be designed and installed to match the existing interior fencing in height, spacing of fence posts, depth of post burial, and diameter of the concrete foundation. No drawings are available, contractor shall bid according to their observations on the site job walk.
15.5 The exterior fencing and gates that are to be added shall be designed and installed to match the existing exterior fencing and gates in height, spacing of fence posts, depth of post burial, and diameter of the concrete foundation. Drawings of similar design have been included for reference only.
15.6 All new fencing and gates shall be grounded in accordance with supplied drawings.
16. EROSION AND SEDIMENT CONTROL
17 16.1 Contractor shall supply and implement all necessary Best Management Practices (BMP’s) in order to control erosion and prevent sediment from entering the stormwater system.
16.2 Measures shall include but not limited to the following:
16.2.1 Geotextiles and mats.
16.2.2 Velocity dissipation devices.
16.2.3 Silt fence.
16.2.4 Sediment basin or trap.
16.2.5 Fiber rolls.
16.2.6 Street sweeping and vacuuming.
16.2.7 Sand bag or straw bale barrier.
16.2.8 Storm drain inlet protection.
16.2.9 Biofilter bags.
16.2.10 Wind erosion control by applying water suppressants.
16.2.11 Entrance/outlet tire wash or wash station for necessary equipment.
COUNCIL COMMUNICATION
CC #: 2074
File #: 0203-09
Title: Gearbox Replacement - Sole Source Purchase Order Contact: Blaine Wiegel 916-746-1833 [email protected] Meeting Date: 5/18/2022
Item #: 6.3.
RECOMMENDATION TO COUNCIL
Staff recommends City Council adopt a resolution approving a sole source purchase order for the replacement of sixteen mixing gearboxes located at the Dry Creek Wastewater Treatment Plant.
In addition, staff requests authority for the City Manager or his designee to approve up to a ten percent (10%) contingency.
BACKGROUND
The Dry Creek Wastewater Treatment Plant has sixteen mixers on the secondary process that maintain a critical function. These mixers are thirty years old and are at the end of their life expectancy. Repair/replacement parts are becoming obsolete and predictive and preventative maintenance have slotted them for replacement. Philadelphia Mixing Solutions manufactures the only direct replacement for these mixers.
FISCAL IMPACT
The estimated cost of replacement is $264,270 with a ten percent (10%) contingency ($26,427) for unforeseen inflated material and/or shipping costs. Funding will be provided from the Environmental Utilities Department’s FY2021-22 Wastewater Operations Fund budget for the Dry Creek Wastewater Treatment Plant.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Approval of a purchase order meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal E - Deliver exceptional city services
Respectfully Submitted,
Blaine Wiegel, Preventative Maintenance Coordinator
Richard Plecker, Environmental Utilities Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-157
Quote
RESOLUTION NO. 22-157
APPROVING A PURCHASE ORDER FOR MIXING GEARBOX REPLACEMENTS WHEREAS, a purchase order with Philadelphia Mixing Solutions, LLC, for the replacement of mixing gearboxes located at the Dry Creek Wastewater Treatment Plant, has been reviewed by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said purchase order is hereby approved; and
BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to approve change orders for the project, consistent with the contract terms, provided that the net cost of all change orders shall not exceed ten percent (10%) of the contract price.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
________________________
City Clerk
Sold To: Ship To:
Jim Cryan
City of Roseville CA
311 Vernon St
Roseville CA 95678
United States
P: 916-413-4035
F:
E:
City of Roseville CA
311 Vernon St
Roseville CA 95678
United States
Philadelphia Mixing Solutions, LLC
1221 East Main St.
Palmyra PA 17078
United States
T: 717-832-2800
Sales Person: Misco – Nate Miller
Email: [email protected]
Phone: 415-794-0984 4/6/2022 Date:
Expires: 4/21/2022
Reference: Quote Number: 79521
Quoted lead times are after acknowledgement of order and DO NOT include shipment time. Unless explicitly stated otherwise, this quote is based upon FOB shipping point. Please make sure purchase order has correct pricing, part descriptions, payment terms, shipping dates, and shipping terms as quoted to ensure fast processing.
Stage Payments
50% invoiced at purchase order acceptance, net 30 days
50% invoiced at readiness for shipment, net 30 days
Line QTY UM Part Description Unit Price Price Ext.
1 16.00 EACH R3BLBH-00000-009
3853M PTOB 31.4:1 1200RPM 3HP, Retrofit
gearbox with output shaft and motor for
91DCZ0928-16
15,582.00 249,312.00
Quote line includes:
3853M-S Gearbox
3HP 1200RPM mill & chem duty, inverter duty motor
31.4:1 gear ratio (37.24RPM output speed)
Standard output shaft to mount to current wetted parts (will cause wetted parts to drop 2.50" in the tank)
Customer to reuse:
Drive stand
All wetted parts (shaft, impeller hub, blades, and hardware) For total quantity of 16 retrofit gearboxes with motors, output shafts, and adapter plates, we will be looking at 3 shipments with staggered delivery dates. Lead times are as follows:
Shipment #1 - 5 gearboxes - Estimated 16 Weeks ARO
Shipment #2 - 5 gearboxes - Estimated 19 Weeks ARO
Shipment #3 - 6 gearboxes - Estimated 22 Weeks ARO
Lead Time: See above
2 16.00 EACH 90010-10155 ADAPTER PLATE 3853M TO 3803 DRIVE STAND C/S 2.50" THK PER DWG 1,343.00 21,488.00
To keep the wetted parts in the exact same off bottom location inside the tank, this adapter plate can be purchased to go between the gearbox and drive stand.
Lead Time:
Bulk Discount -10% = $224,381.00
Bulk Discount -10% = $19,339.00
QUOTE - Miscellaneous Charge -
Freight (Total for 3 shipments) 20,550.00
Shipment Method: Best Way – Included
Incoterms: FOB Origin – Palmyra, PA
Tax Liability: Exemption Certificate
Requested
Payment Terms: REQUIRED CREDIT APPL
The standard lead time mentioned herein is based upon current shop load and inventory; shipment of the equipment and spare parts can be made approximately at the time noted, either after the receipt of a purchase order (ARO) or the release for manufacture by the customer (ARAD) Manufacturing lead time is to be confirmed at receipt of order, and it may be subject to change in circumstances where parts are unavailable or current shop workload does not allow for timely manufacturing. All prices are FOB Palmyra and do not include lowest motor freight to jobsite. Expedited Delivery available upon request.
The execution of this order may be impacted by the developing coronavirus COVID-19/SARS-CoV-2 pandemic. At this time, Philadelphia Mixing Solutions, LLC. (PMSL) is unable to consider all potential impacts. PMSL therefore reserves the right to reasonably adjust any dates and times for the delivery/execution of this order, if the order is impacted by the pandemic or its consequences. This shall also include any reasonable action taken by PMSL to reduce risks to the health and wellbeing of its personnel and others, even if such actions are not legally required.
PMSL shall not be liable to Buyer for any delay arising out of or connected with the United Kingdom ceasing to be a member of the European Union ("Brexit") and all costs and expenses reasonably incurred by PMSL in connection with Brexit (including import duties, if any, applying after the expiry of the withdrawal agreement on December 31, 2020) shall be reimbursed by Buyer.
Unless otherwise expressly agreed to in writing by PMSL, this transaction shall be governed solely and exclusively by the PMSL Standard Terms and Conditions of Sale attached hereto. PMSL’s acceptance of this purchase order is expressly made on the condition that PMSL Standard Terms and Conditions of Sale govern the order. Any pre-work performed by PMSL is merely an accommodation, and shall not be considered an acceptance of the order or of any other terms and conditions. PMSL hereby expressly rejects the applicability of any and all terms and conditions of Buyer.
NOTICE
The Materials contained in this presentation are deemed confidential and proprietary work product of Philadelphia Mixing Solutions, Ltd.
Any reproduction, distribution, or sharing of the contents, in whole or in part, with an individual or entity other than the direct recipient of this material, its authorized agents, or employees is strictly prohibited.
Philadelphia Mixing Solutions, Ltd. retains all rights herein.
Total $: 264,270.00
ONLINE PARTS CATALOG
Focus on Your Business, Not on Purchasing Parts
• Drill down to the exact part needed via engineering cut sheets • Quickly order recommended spare parts
• Order anytime, anywhere, including after hours
• Pay with credit card or upload purchase order
• Ship multiple methods, including collect
• Self-service account maintenance
• Download IOM manual for your mixer
• Tutorial video and “easy contact us” links included
Click on hot spot bubbles to add to shopping cart
Available on www.philamixers.com
+1 717-832-2800 | www.philamixers.com | [email protected] AMUS004 12/18
STANDARD TERMS AND CONDITIONS OF SALE
GOVERNING TERMS
These Terms and Conditions of Sale (“Terms”) shall govern all quotations, orders and contracts for the sale of goods and services of Philadelphia Mixing Solutions, LLC (“PMSL”) to Buyer. These Terms supersede and exclude any prior written or oral agreement, understanding, representation or promise, and any pre-printed or standard terms and conditions contained in Buyer’s request for quote, purchase order, invoice, order acknowledgement, contract or other similar document. These Terms may not be amended, supplemented, changed or modified except by concurrent or subsequent written agreement, signed by an authorized representative of PMSL and Buyer. PMSL's acknowledgement of Buyer’s order shall not constitute acceptance of any terms and conditions contained therein, regardless of how such terms and conditions may be prefaced or described.
1. DEFINITIONS: “PMSL” means the Philadelphia Mixing Solutions, LLC entity named in the order which is providing the goods and/or services. “Buyer” means the company who accepted PMSL’s offer or is named in the order.
2. PRICES: Unless otherwise mutually agreed to in writing, prices are net, Free Carrier (INCOTERM 2010) PMSL facility. Stenographic, clerical and mathematical errors are subject to correction. Prices are exclusive of expenses related to special packaging or procedures to cover unique circumstances of shipment or storage unless specifically noted. Until acceptance of order on these Terms, quoted prices are subject to change.
3. DELIVERY AND PERFORMANCE: Unless otherwise specifically agreed in writing by the parties, all goods shall be delivered Free Carrier (INCOTERM 2010) PMSL facility. Title shall pass to the Buyer upon delivery, or upon payment in full, whatever is later, provided that the only rights that PMSL retains in relation to title are those enabling recovery of the goods in the event of Buyer’s default on payment. Dates for the furnishing of services and/or delivery or shipment of goods are approximate only and are subject to change, and PMSL shall use commercially reasonable efforts to meet such dates; provided, however, that PMSL shall not be liable in damages or otherwise, nor shall Buyer be relieved of its performance hereunder, because of PMSL’s failure to meet them. If liquidated damages or a penalty have been agreed for delay, such liquidated damages or penalty shall only become due if the delay is solely due to the fault of PMSL, the Buyer suffers damage due to this delay, and the Buyer has notified PMSL in writing after the expiry of the time during which delivery could have been reasonably expected. Unless specifically agreed otherwise, it shall be calculated based on the value of the delayed part of the delivery, and the aggregate liability of PMSL for all liquidated damages/penalties shall be limited to 5% of the total order value. Such liquidated damages/penalty shall be the Buyer’s sole remedy and PMSL’s sole liability in case of delay. For the avoidance of doubt, if the order is subject to the laws of the Netherlands, “liquidated damages” or “penalty” shall mean a contractual penalty which is meant to be a compensation for damages. Additionally, PMSL shall not be liable, directly or indirectly, for any delay in or failure to perform caused by carriers or suppliers; labor difficulties, shortages, strikes or stoppages of any sort; difficulty in obtaining materials; Buyer requested order changes; fires, floods, storms, accidents, or acts of God; any statute, sanction, injunction or other governmental restraint or prohibition or political unrest; or other causes beyond PMSL’s reasonable control. In the event of any such delay, the date of delivery shall be extended for a length of time at least equal to the period of the delay. All goods for which PMSL does not receive notice of rejection for within seven (7) days after receipt, will be deemed accepted.
4. SHORTAGE, DAMAGE, ERRORS IN SHIPMENT: PMSL’s responsibility ceases upon making the goods available for pickup at PMSL’s facility. Buyer shall note receipt for goods that are not in accordance with bill of lading or express receipt and Buyer shall make claim against such carrier for any shortage, damage or discrepancy in the shipment promptly. Partial and transshipments are allowed.
5. TAXES: The quotation and order price excludes all assessments, taxes, levies and charges of whatsoever nature present or future, due or becoming due. This exemption shall include but not be limited to value added tax, income tax, withholding tax, profits tax, turnover tax, goods and services tax and any other consumption or environmental taxes applicable, tax payable on the income of expatriate employees, port dues, import and custom duties on the components and services and all export duties payable on the repatriation of any PMSL components at the end of an order, where applicable. On the basis that an order is tax exclusive PMSL reserve the right to invoice by way of an addition to such order price, such taxes as may be applicable under the relevant jurisdiction’s tax regulations, together with PMSL’s external costs of dealing with these taxes.
6. CREDIT AND PAYMENT: Unless otherwise agreed in writing by PMSL, payment of goods shall be net thirty (30) days, in the currency of the country of PMSL. For orders in excess of two hundred and fifty thousand dollars ($250,000 USD) or the local equivalent payment terms shall be as follows: (a) twenty percent (20%) down payment, (b) forty percent (40%) upon PMSL’s purchase of raw materials/components, and (c) forty percent (40%) at the time of delivery. Down payment shall be due within five (5) of PMSL’s acceptance of the order, with the remaining two payments being net thirty (30) days. Prorated payments shall become due with partial shipments, and Buyer shall not be entitled to any retention or holdback; provided, however, if PMSL agrees in writing to a retention or holdback, PMSL may provide such retention or holdback in the form of a bond, letter of credit or bank guarantee in no event to extend more than thirty (30) days beyond expiry of the warranty period. PMSL retains all remedies for Buyer’s insolvency including, but not limited to, the right to stop delivery, reclaim any goods delivered, or withhold delivery except for cash. Failure to pay invoices at maturity date, at PMSL’s election, makes all subsequent invoices immediately due and payable and PMSL may withhold all subsequent deliveries until the full account is settled and PMSL shall not, in such event, be liable for non-performance of contract in whole or in part. Buyer agrees to pay, without formal notice, one and one-half percent (1.5%) per month of the amount not paid when due, or, if such rate is in excess of applicable governing law, Buyer agrees to pay the maximum permitted rate. No deduction, whether by way of set-off, counterclaim or otherwise, shall be made by Buyer. If prerequisites for any payment (such as delivery, completion or formal acceptance) cannot be satisfied due to Buyer’s breach, such payment shall nevertheless become due and payable at the time agreed to and PMSL’s further right to seek damages shall remain unaffected.
7. CANCELLATIONS AND CHANGES: All orders are binding upon acceptance. In the event that PMSL, in its sole discretion, agrees to cancellation of an order by Buyer, Buyer shall be liable for a cancellation charge equal to the greater of (i) twenty-five percent (25%) of the purchase price and (ii) any loss or cost incurred by PMSL, including, but not limited to, cost of materials, labor, engineering, reconditioning and a reasonable profit margin. Buyer is responsible for all reasonable storage, insurance, and all other expenses incurred by PMSL as a result of Buyer’s cancellations and/or changes. No changes to the specification or the order are accepted without the prior written consent of both parties. In the event Buyer requests a change, PMSL will provide a quotation to Buyer within a reasonable time of no less than ten (10) working days detailing the corresponding change in delivery, price, materials, and similar. PMSL shall not be obligated to implement the requested change until the quotation is agreed by the parties.
8. LIMITED WARRANTY: Unless otherwise mutually agreed to in writing, (a) PMSL goods, auxiliaries and parts thereof are warranted to the Buyer against defective workmanship and material for a period of twelve (12) months from date of installation or eighteen (18) months from date of delivery, whichever expires first, and (b) PMSL services are warranted to Buyer to have been performed in a workmanlike manner for a period of ninety (90) days from the date of performance. If the goods or services do not conform to the warranty stated above, then as Buyer’s sole remedy, PMSL shall, at PMSL’s option, either repair or replace the defective goods or reperform defective services. If Buyer makes a warranty claim to PMSL and no actual defect is subsequently found, Buyer shall reimburse PMSL for all reasonable costs which PMSL incurs in connection with the alleged defect. Third party goods furnished by PMSL will be repaired or replaced as Buyer’s sole remedy, but only to the extent provided in and honored by the original manufacturer’s warranty. Unless otherwise agreed to in writing, PMSL shall not be liable for breach of warranty or otherwise in any manner whatsoever for: (i) normal wear and tear; (ii) corrosion, abrasion or erosion; (iii) any good or services which, following delivery or performance by PMSL, has been subjected to accident, abuse, misapplication, improper repair, alteration (including modifications or repairs by Buyer, the end customer or third parties other than PMSL), improper installation or maintenance, neglect, or excessive operating conditions; (iv) defects resulting from Buyer’s specifications or designs or those of Buyer’s contractors or subcontractors other than PMSL; or (v) defects resulting from the manufacture, distribution, promotion or sale of Buyer’s products; (vi) damage resulting from the combination, operation or use with equipment, products, hardware, software, firmware, systems or data not provided by PMSL, if such damage or harm would have been avoided in the absence of such combination, operation or use; or (vii) Buyer’s use of the goods in any manner inconsistent with PMSL’s written materials regarding the use of such product. In addition, the foregoing warranty shall not include any labor, dismantling, reinstallation, transportation or access costs, or other expense associated with the repair or replacement of PMSL goods. THE WARRANTIES CONTAINED HEREIN ARE
THE SOLE AND EXCLUSIVE WARRANTIES AVAILABLE TO BUYER AND PMSL HEREBY DISCLAIMS ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ANY PERFORMANCE OR PROCESS OUTCOME DESIRED BY THE BUYER AND NOT SPECIFICALLY AGREED TO BY PMSL. THE FOREGOING REPAIR, REPLACEMENT AND REPERFORMANCE OBLIGATIONS STATE PMSL FLOW’S ENTIRE AND EXCLUSIVE LIABILITY AND BUYER’S EXCLUSIVE REMEDY FOR ANY CLAIM IN CONNECTION WITH THE SALE AND FURNISHING OF SERVICES, GOODS OR PARTS, THEIR DESIGN, SUITABILITY FOR USE, INSTALLATION OR OPERATIONS.
9. INTELLECTUAL PROPERTY: In the event of a successful infringement claim by a third party, at PMSL’s option, PMSL shall either (i) modify the goods sold hereunder so that they perform comparable functions without infringement, (ii) obtain a royalty-free license for Buyer to continue using the infringing goods or (iii) refund to Buyer the then-depreciated fair market value of the infringing component. PMSL shall have no obligation under this Article to the extent a claim is based upon (a) the combination, operation or use of the goods with equipment, products, hardware, software, systems or data that was not provided by PMSL, if such infringement would have been avoided in the absence of such combination, operation or use, or (b) Buyer’s use of the product in any manner inconsistent with PMSL’s written materials regarding the use of such product or (c) infringement resulting from Buyer’s specifications or designs or those of Buyer’s contractors or subcontractors other than PMSL. This Section states PMSL’s entire liability and Buyer’s exclusive remedy with respect to any actual or alleged infringement arising from the use of the goods or services sold hereunder or any part thereof and is subject to the other limitations contained in these Terms.
10. LIMITATION OF LIABILITY: NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH HEREIN: (A) IN NO EVENT SHALL PMSL BE LIABLE FOR ANY EXEMPLARY, PUNITIVE, INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES WHATSOEVER (COLLECTIVELY DEFINED AS “CONSEQUENTIAL DAMAGES”), WHETHER
FORESEEABLE OR NOT, INCLUDING WITHOUT LIMITATION, THIRD PARTY CHARGES AND COSTS, LOST PROFITS (WHETHER DIRECT OR INDIRECT), PRODUCT,
PRODUCTION, BUSINESS OR BUSINESS OPPORTUNITY, REGARDLESS OF THE CAUSE, INCLUDING WITHOUT LIMITATION, THE NEGLIGENT ACTS OR OMISSIONS,
BREACH OF CONTRACT, WARRANTY (EXPRESS OR IMPLIED) OR DUTY (STATUTORY OR OTHERWISE) OR STRICT LIABILITY OF PMSL GROUP OR ANY OTHER THEORY OF LEGAL LIABILITY; AND (B) PMSL’S AGGREGATE LIABILITY ARISING FROM OR IN CONNECTION WITH ALL ORDERS AND CONTRACTS FOR GOODS AND SERVICES UNDER
THESE TERMS SHALL (SAVE FOR LIABILITIES WHICH CANNOT BE LIMITED BY APPLICATION OF LAW) NOT EXCEED THE CONTRACT PRICE FOR THE GOODS AND/OR SERVICES FOR WHICH LIABILITY IS CLAIMED. ANY ACTION FOR BREACH OF CONTRACT BY BUYER MUST BE COMMENCED WITHIN 30 DAYS OF THE EXPIRY OF THE WARRANTY PERIOD. BUYER SHALL BE SOLELY RESPONSIBLE FOR ANY AND ALL AGREEMENTS MADE WITH THIRD PARTIES THAT ARE OUTSIDE THE SCOPE OF THESE TERMS AND WHICH ARE CONTRARY TO THE LIMITATIONS OF LIABILITY AND/OR WARRANTY INCLUDED HEREIN.
11. GOODS FOR EXPORT: Buyer acknowledges that the goods may be subject to export restrictions, and that Buyer will comply with all such applicable laws and regulations. If the goods are intended for export, Buyer shall designate country of destination on its order. In the event that Buyer purchases goods for export without so notifying PMSL, PMSL reserves the right to cancel the order at no penalty or liability for breach in the event that PMSL objects to the ultimate destination of the goods. Buyer will have sole liability and shall defend, indemnify and release PMSL for any loss or damage (including without limitation, claims of governmental authorities) arising from the export or import of such goods, including, without limitation, those related to packaging, labeling, marking, warranty, contents, use, or documentation of the goods. Buyer has sole responsibility for obtaining any required export licenses. Buyer will not take, and will not solicit PMSL to take, any action which would violate any anti-boycott or any export or import statutes or regulations applicable to the order, of any governmental authorities, and shall defend, indemnify, and reimburse PMSL for any loss or damage arising out of or related to such actions. To the extent PMSL is required to obtain an export license for any goods: (1) PMSL obligation to fulfill an order with goods requiring such a license will be directly subject to the granting of the license; (2) PMSL will use commercially reasonable effort to obtain such license; (3) Buyer shall make available all necessary information and documentation required for PMSL to obtain such license; and (4) Buyer shall reimburse PMSL for its reasonable expenses incurred in connection with obtaining such license.
12. PROPRIETARY INFORMATION: PMSL shall retain title to all engineering and production prints, drawings, technical data, and other intellectual property, information and documents that relate to the goods or services sold to Buyer. All such information and documents disclosed or delivered by PMSL to Buyer: (i) are to be deemed proprietary to PMSL; (ii) shall not be disclosed to any third party for any reason without the express prior written consent of PMSL; and (iii) shall be used by Buyer solely for the purpose of inspection, installation, use and maintenance of the goods and services sold to Buyer under these Terms.
13. APPLICABLE LAW; VENUE; DISPUTE RESOLUTION: For sales of goods sold or to be delivered or services to be performed within the United States: The rights and duties of the parties hereunder shall be governed by the laws of the State of North Carolina, United States of America, excluding its conflicts law and choice of laws principles. Any action or proceeding with respect to any dispute or controversy involving or arising out of this order, at PMSL’s sole discretion, (i) shall be brought in any State court in Mecklenburg County, North Carolina or the Federal courts of the Western District of North Carolina, United States of America, and Buyer and PMSL submit to and accept generally and unconditionally the jurisdiction of those courts with respect to such party’s person and property, or (ii) shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial Rules, which award shall be final and binding on the parties and may be entered and enforced in any court having jurisdiction. Buyer and PMSL hereby irrevocably waive any objection to the laying of venue of any action or proceeding in the above-described courts. For sales of goods sold or to be delivered or services to be performed outside of the United States: The rights and duties of the parties hereunder shall be governed by and construed in accordance with the law of the jurisdiction of the PMSL entity providing the goods or services for this order. The United Nations Convention on Contracts for the International Sale of Goods and the conflict rules of international private law shall not apply. Any action or proceeding with respect to any dispute or controversy involving or arising out of this order, at PMSL’s sole discretion, (i) shall be brought in any competent court of the jurisdiction in which the PMSL entity providing the goods or services is located, or (ii) shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with said Rules, with English serving as the language of the arbitration proceeding and award. Notwithstanding any other limitations contained in these Terms, PMSL reserves the right to initiate proceedings in any court of competent jurisdiction, and Buyer shall indemnify PMSL for all costs, fees and expenses (including reasonable attorneys’ fees) PMSL incurs in connection with enforcing its rights pursuant to this order.
14. RESALE: Buyer further agrees that upon resale of the goods, it will include in the contract for resale provisions which limit recoveries against PMSL in accordance with these Terms. If Buyer fails to include such provisions in any such contract for resale, (a) PMSL may reject Buyer’s order related to such contract for resale, and (b) Buyer shall indemnify, defend and hold harmless PMSL against any claim, liability, loss, cost, damage, or expense (including reasonable attorneys’ fees) arising out of or resulting from such failure.
15. BUYER CAUSED DELAYS; WAIVER OF RIGHTS: If Buyer fails to perform any of its obligations under an order, PMSL shall be entitled to suspend its performance under the order until such time as Buyer performs such obligations, and any dates for the delivery of goods or performance of services shall be extended for an amount of time determined in PMSL’s discretion.
Delays caused by Buyer which prevent PMSL from achieving the original order performance requirements includes but is not limited to: (a) the construction of buildings, structures or other parts of the site within which PMSL’s goods are to be located; (b) changes in scope of an order introduced by Buyer; (c) completion of approvals, consents or delivery of critical information by Buyer beyond the periods provided in an order; (d) any specified site facilities and working conditions not being maintained by Buyer; (e) failure of Buyer to arrange carriage of the goods under an order, where Buyer has such obligation, or any other inability or refusal of Buyer to accept delivery in accordance with order delivery dates; (f) delays in obtaining customs clearance (where applicable) of the order deliveries; and (g) delay by Buyer in providing any required security to PMSL in the form of a letter of credit, bank guarantee or otherwise. In the event of such Buyer delays, PMSL shall in addition to an extension of remaining milestones, be entitled to an increase in the total order price to reflect the increase in cost to PMSL directly caused by Buyer delays. Additionally, PMSL shall be entitled to submit invoices for any order milestone for which completion has been frustrated due to Buyer delays. Such invoices shall be paid within 30 days of the date of PMSL’s invoice.
Any engineering, technical or other submittal drawings submitted by PMSL to Buyer which are not expressly rejected in writing within ten (10) business days of Buyer’s receipt, will be deemed accepted by Buyer. Buyer’s right to conduct any agreed upon pre-shipment inspections (i) which Buyer does not schedule within ten (10) business days of receipt of notice of readiness to inspect from PMSL or (ii) which Buyer delays for more than ten (10) business days from the date originally scheduled, will be waived, so long as PMSL certifies in writing that the goods successfully passed PMSL’s standard pre-shipment inspection. Where Buyer delays taking shipment of any goods or otherwise fails to engage or otherwise dispatch a freight forwarder or transit company within ten (10) business days of notification that the goods are ready to ship, PMSL shall be entitled to change the delivery term to Ex Works (INCOTERM 2010) PMSL facility.
16. NO OTHER CONTRACT PROVISIONS; OTHER: No dealer, broker, branch manager, agent, employee or representative of PMSL has any power or authority except to take orders for PMSL goods or services and to submit the same to PMSL for PMSL’s approval and acceptance on the terms herein or rejection. There are no representations, agreements, obligations, or conditions, expressed or implied, statutory or otherwise, relating to the subject matter hereof, other than contained herein. For the avoidance of doubt and not in limitation of the foregoing, PMSL shall not be bound by the terms of any contract between Buyer and any third party or other flow down provisions, regardless of whether Buyer notifies PMSL of such terms unless PMSL expressly agrees to be bound by such terms in writing by an authorized representative of PMSL. If any provision hereof is invalid or not enforceable under applicable law, the remaining provisions shall remain in full force and effect.
PMSL reserves the right to transfer or assign its obligations, rights and responsibilities hereunder, so long as such successor or assign agrees to these Terms. Any assignment of Buyer’s rights hereunder without PMSL’s consent (which shall not be unreasonably withheld) shall be void. PMSL’s failure to require Buyer’s performance of any of these Terms shall not serve as a waiver of or diminish PMSL’s rights to require strict performance of these Terms. (Rev. 0 May 2021)
COUNCIL COMMUNICATION
CC #: 2068
File #: 0203-07
Title: Distribution Transformers - Purchase Order Increase Contact: Chris Porter 916-774-5615 [email protected] Meeting Date: 5/18/2022
Item #: 6.4.
RECOMMENDATION TO COUNCIL
Staff recommends that City Council approve an increase to the Purchase Order authority for Distribution Transformers (RFQ 10-3177) from $7,000,000 to $12,000,000.
BACKGROUND
After formal bids were issued, a Purchase Order was awarded for Distribution Transformers (RFQ 10-3177) on October 17, 2018 (with final optional renewal years expiring on June 30, 2023). The Electric Department has an ongoing need for the materials purchased on this Purchase Order in order to support new development, distribution system upgrades and maintenance activities.
The spending authority for this Purchase Order was revised to $7,000,000 on February 16, 2022 to accommodate the increase in development activity as well as price increases that had occurred since the contract began. At the end of February, an order was placed for transformers, at which time the department learned that the lead time had significantly increased (approximately 1 year lead time). The drastic increase in lead time is due to pandemic-related pressures such as the supply chain of raw materials and lack of a skilled workforce. As a result, Electric needs to order transformers two years in advance to be able to support new development and significantly increase our spare stock of transformers in order to assure our ability to restore power to our existing customers in the event of a transformer failure. As such, the amount the department expects to spend on this contract has increased significantly.
FISCAL IMPACT
The recommended increase to the Purchase Order authority for Distribution Transformers (RFQ 10-3177) is from a total of $7,000,000 to $12,000,000.
Purchase of these materials are done on an as-needed basis; there is no guaranteed spending amount for this contract. Funding is included in the Electric Fund for FY2021-22 and future year funding will be requested as part of the annual Electric Department budget.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The increase in spending authority on these Purchase Orders meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal E - Deliver exceptional city services
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Chris Porter, Power Engineering Manager
Daniel Beans, Electric Utility Director
_____________________________
Dominick Casey, City Manager
COUNCIL COMMUNICATION
CC #: 2082
File #: 0203-01
Title: Vehicles – Purchase Orders
Contact: Brian Craighead 916-774-5731 [email protected] Meeting Date: 5/18/2022
Item #: 6.5.
RECOMMENDATION TO COUNCIL
RFQ 10-3320
Staff recommends City Council approve a purchase order to Napa Valley Ford Lincoln Mercury, Inc. dba Napa Ford Lincoln for six (6) Ford F250 utility body trucks utilizing RFQ 10-3320 to replace Fleet ID 05-228, 07-273, and four (4) fleet additions approved in the FY2021-22 Fleet Replacement budget. The total cost, including options and sales tax, is $366,640.
RFQ 10-3321
Staff recommends City Council approve a purchase order to Napa Valley Ford Lincoln Mercury, Inc. dba Napa Ford Lincoln for two (2) Ford F550 utility body crane trucks utilizing RFQ 10-3321 to replace Fleet ID 06-394 and 06-395 approved in the FY2021-22 Fleet Replacement budget.
The total cost, including options and sales tax, is $272,570.
BACKGROUND
RFQ 10-3320
The Parks, Recreation & Libraries Department’s Park Maintenance division is purchasing two (2) Ford F250 utility body trucks as new fleet additions. One truck will be assigned to the new Irrigation Technician to perform irrigation system and water management throughout the 80-park system as well as inspect, repair, and replace controllers and irrigation components. The second truck will be assigned to the infrastructure team to perform safety inspections and repairs of park site amenities, restrooms, playgrounds, and sports courts throughout the 80-park system.
The Environmental Utilities Water Operations division is purchasing one Ford F250 utility body truck as a new fleet addition. This truck will be assigned to the senior worker for the crossconnection control program to be used for annual backflow inspections or re-inspections, maintaining and repairing City-owned backflows, performing Cross Connection Control Surveys, field meetings with contractors, and compliance (CCR Title 17 and RMC 14.10).
The Environmental Utilities Wastewater Maintenance division is purchasing three (3) Ford F250 utility body trucks to replace Fleet ID 05-228, 07-273, and one fleet addition. The trucks are used daily for mechanical and electrical maintenance activities including preventative maintenance, troubleshooting, and repairing mechanical and electrical issues, predominately at the City’s Pleasant Grove Wastewater Treatment Plant, Dry Creek Wastewater Treatment Plant, and the Barton Road Water Treatment Plant. Additionally, they are used at multiple neighborhood sewer lift stations, water distribution wells, and pumping sites throughout the City, on an as-needed basis.
A formal bid was issued with the following vendor responses:
Vendor Total Price (with all potential options)
Napa Ford $366,640.00
Napa, CA
Oroville Ford $399,640.21
Oroville, CA
RFQ 10-3321
The Environmental Utilities Wastewater Maintenance division is purchasing two (2) Ford F550 utility body crane trucks to replace Fleet ID 06-394 and 06-395. The trucks are used daily for mechanical and electrical maintenance activities including preventative maintenance, troubleshooting, and repairing mechanical and electrical issues, predominately at the City’s Pleasant Grove Wastewater Treatment Plant, Dry Creek Wastewater Treatment Plant, and the Barton Road Water Treatment Plant. Additionally, they are used at multiple neighborhood sewer lift stations, water distribution wells, and pumping sites throughout the City, on an as-needed basis.
The cranes will service below grade vaults, sewer wet wells, and metering stations when repairs to heavy motors, valves, gearboxes and pumps are required.
A formal bid was issued with the following vendor responses:
Vendor Total Price (with all potential options)
Napa Ford *$272,570.00 ($268,820.00)
Napa, CA
Oroville Ford $282,102.94
Oroville, CA
Altec Industries $334,730.28
Mount Airy, N.C.
After staff reviewed the bids, it was discovered that the low bidder made mathematical errors when calculating their grand total as noted above by the asterisk. The bid result was not impacted and Napa Ford is still the lowest bidder.
Vehicle replacements are based on the Fleet Scoring System, which considers factors such as age, mileage, reliability, prior maintenance and repair costs, and current condition. Below are the vehicle replacement scores. A score of 23 or more indicates the vehicle is eligible for replacement.
Vehicle ID Replacement Score Vehicle Condition
05-228 24 Meets City replacement criteria
07-273 24 Meets City replacement criteria
06-394 30 Meets City replacement criteria
06-395 26 Meets City replacement criteria
FISCAL IMPACT
RFQ 10-3320
The total cost of six (6) Ford F250 utility body trucks, including options and sales tax, is $366,640.
Funding is included in the FY2021-22 Fleet Replacement budget.
RFQ 10-3321
The total cost of two (2) Ford F550 utility body with crane trucks, including options and sales tax, is $272,570. Funding is included in the FY2021-22 Fleet Replacement budget.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The purchase of vehicles meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal E - Deliver exceptional city services
Respectfully Submitted,
Brian Craighead, Fleet Manager
Jason Shykowski, Public Works Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
COUNCIL COMMUNICATION
CC #: 2063
File #: 0709-01 & 0214
Title: 2022 Local Housing Trust Fund Application
Contact: Trisha Isom 916-746-1239 [email protected] Sara Thornton 916-774-5295 [email protected]
Meeting Date: 5/18/2022
Item #: 6.6.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution authorizing the City Manager or his designee to execute the necessary applications, forms, standard agreement and relevant documents for the Local Housing Trust Fund grant from the California Housing and Community Development Department.
BACKGROUND
The California Housing and Community Development Department (HCD) released a Notice of Funding Availability (NOFA) for approximately $57 million in funds for the Local Housing Trust Fund (LHTF) Program on April 5, 2022. This funding provides matching grants to Local Housing Trust Funds established by cities and counties, Native American Tribes and incorporated 501(c) (3) non-profit organizations. The objective of the LHTF grant is to expand funding sources in order to increase the supply of affordable housing. Eligible activities include construction loans and/or permanent financing loans to pay for predevelopment costs, acquisition costs, and other costs associated with the development or rehabilitation of affordable rental housing projects, or emergency shelters, transitional housing, permanent supportive housing, and affordable homebuyer/homeowner projects. The minimum application request for existing Local Housing Trust Funds is $1 million and the maximum request is $5 million.
In October of 2004, the City of Roseville established a Housing Trust Fund as a permanent source of financing for the City’s affordable housing programs. Roseville’s Housing Trust Fund was initially funded from condominium conversion fees collected between 2004 and 2007. With the initial fund balance, the Housing Trust Fund issued two loans to affordable housing projects, in the form of a predevelopment loan for the Lohse Apartments and a deferred construction loan for the Main Street Plaza Apartments. At the time, these two loans fully expended the available fund balance in the Housing Trust Fund.
In order to be eligible to apply for state matching funds, HCD requires that the City’s matching funds be set aside in the Housing Trust Fund until they are loaned to a specific affordable project.
On December 18, 2019 and July 15, 2020, budget adjustments were approved by City Council to transfer $1.5 million and $3.76 million respectively from the Affordable Housing Fund to the Housing Trust Fund in order to increase the fund balance of the Housing Trust Fund and satisfy HCD’s requirement of matching funds. It was also decided that, going forward, the Housing Trust Fund would receive all loan repayments from the developer-subsidized Affordable Purchase Program as well as developer in-lieu fees in order to provide the required permanent revenue stream of no less than $100,000 per year. The current loan receivable from the developer subsidies is approximately $11 million.
HCD’s scoring criteria provides extra points specifically for localities that have completed a first phase funding process for multifamily rental projects. The Roseville Housing Division released a Notice of Funding Availability (NOFA) on June 15, 2021 and requested applications from qualified affordable housing developers and project sponsors by June 25, 2021. The Housing Division received three responses to the NOFA and all three were placed on the City’s Affordable Housing Pipeline Report (Attachment 1) subject to full project underwriting and approval of funding by City Council.
In December 2021, the City received notice of a successful application and a LHTF program award of $5M from HCD. Unfortunately, the City was misinformed by the state and in January 2022, HCD issued a corrected award letter reducing the award amount to $1,135,761. The 2022 Local Housing Trust Fund application is requesting $4,057,451 in matching funds which will allow the Housing Division to use 5% of the funds for administration and fully fund all three projects in the Affordable Housing Pipeline.
Staff requests Council authorization to complete and submit an application for LHTF matching funds (Attachment 3 - Draft LHTF application). Application materials must be submitted electronically to HCD’s website by May 25, 2022. If the City’s application is successful, staff will return to Council with proposed loan documents after full underwriting has occurred for the affordable projects. The matching funds would supplement the existing amount in the fund bringing the City’s Housing Trust Fund balance to $10.4 million. All funds would be used to finance future affordable rental housing developments in Roseville in accordance with the LHTF Final Guidelines.
FISCAL IMPACT
The City's Local Housing Trust Fund receives funding from developer in-lieu fees, payoffs from resales and payoffs from developer subsidy loans. No General Fund resources will be used for the Local Housing Trust Fund Program.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. (CEQA Guidelines §15061(b)(3)). The 2022 Local Housing Trust Fund application meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal D - Enhance economic vitality
Respectfully Submitted,
Trisha Isom, Housing Manager
Melissa Anguiano, Economic Development Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-152
Affordable Housing Pipeline
2022 LHTF Draft Application
RESOLUTION NO. 22-152
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE THE LOCAL
HOUSING TRUST FUND GRANT APPLICATIONS, FORMS, STANDARD AGREEMENTS
AND ALL RELEVANT DOCUMENTS ON BEHALF OF
THE CITY OF ROSEVILLE
WHEREAS, the State of California Department of Housing and Community Development ("Department") is authorized to provide up to $57 million under the Local Housing Trust Fund ("LHTF") Program from the Veterans and Affordable Housing Bond Act of 2018 (Proposition 1) (as described in Health and Safety Code section 50842.2 et seq. (Chapter 365, Statutes of 2017 (SB 3)) ("Program"); and
WHEREAS, the Department issued a Notice of Funding Availability (''NOFA") dated April 5, 2022, under the LHTF Program; and
WHEREAS, the City of Roseville is an eligible Local Housing Trust Fund applying to the Program to administer one or more eligible activities using Program Funds; and WHEREAS, the Department may approve funding allocations for the LHTF Program, subject to the terms and conditions of H&S Code Section 50842.2, the LHTF Program Guidelines, NOFA, Program requirements, the Standard Agreement and other related contracts between the Department and LHTF award recipients; and
NOW, THEREFORE, BE IT RESOLVED THAT:
1. If the City of Roseville receives an award of LHTF funds from the Department pursuant to the above referenced LHTF NOFA, it represents and certifies that it will use all such funds on Eligible Projects in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including, without limitation, all rules and laws regarding the LHTF Program, as well as any and all contracts The City of Roseville may have with the Department ("Eligible Project"); and
2. BE IT FURTHER RESOLVED, that the Roseville Local Housing Trust Fund is hereby authorized to act as the Trustee/Manager in connection with the Department's funds to Eligible Projects pursuant to the above-described Notice of Funding Availability in an amount not to exceed $4,057,451 (the "LHTF Award"); and
3. The City of Roseville hereby agrees to match on a dollar for dollar basis the LHTF Award pursuant to Guidelines Section 104. The City of Roseville hereby agrees to utilize matching funds on a dollar-for-dollar basis for the same Eligible Project for which Program Funds are used, as required by HSC Section 50843.5(c);and
4. Pursuant to Attachment 1, attached hereto and incorporated herein by thisreference, and the City of Roseville's certification in this resolution, the LHTF funds will be expended only for Eligible Projects and consistent with all program requirements; and
5. The City of Roseville shall be subject to the terms and conditions as specified in the Standard Agreement, H&S Section 50842.2 and LHTF Program Guidelines; and
6. The City Manager of the City of Roseville is authorized to execute the LHTF Program Application, the LHTF Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the LHTF Award to The City of Roseville, as the Department may deem appropriate.
PASSED AND ADOPTED by the Council of the City of Roseville this day of , 20 , by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
CERTIFICATE OF THE ATTESTING OFFICER
The undersigned, City Clerk, Carmen Avalos, does hereby attest and certify that the attached resolution is a true, full and correct copy of a resolution duly adopted at a meeting of the City of Roseville, which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.
ATTEST:
City Clerk
ATTACHMENT 1
Summary of Use of Funding
Local Housing Trust Fund Program and matching funds will be used for permanent and construction loans to subsidize the new construction of multifamily rental housing. The City of Roseville (Agency) will retain five percent of Program funds for program administration. The remainder of the Program funds will be used on a dollar for dollar match basis with locallygenerated housing trust fund dollars to support the development of affordable rental housing in the City of Roseville.
All project funding mentioned above will be used to support households at or below 80 percent Area Median Income. A minimum of 30 percent of program funds will be used to support households at or below 30 percent Area Median Income.
Project Sponsor
Project Name Project Address Total Units Income Levels Served Financing Requested Amount Tentatively Awarded Mercy Housing California Pleasant Grove Apartments 1721 Pleasant Grove BL 98 30% ‐ 60% $ 3,245,000 $4,000,000 Bridge Housing Corporation Royer Street Apartments 505 Royer Street 57 30% ‐ 80% $ 3,000,000 $3,500,000Hampstead Development Partners Hayden Parkway Apartments 2801 N Hayden PW 94 30% ‐ 60% $ 5,600,000 $2,500,000 City of Roseville Affordable Housing Pipeline
The City of Roseville's Housing Trust Fund is the City's primary tool for supporting new affordable housing development. The City has made tentative funding commitments with the developers listed below to bring new units to our community. This list of developments have been informed they can submit a full application once the HTF receives notice of a State LHTF award.
Local Housing Trust Fund (LHTF) Program
Application
2022 Notice of Funding Availability
State of California
Rev. 4/2022
Governor Gavin Newsom
Lourdes Castro Ramírez, Secretary
Business, Consumer Services and Housing Agency
NOFA Release: April 5, 2022
Website: https://hcd.ca.gov/local-housing-trust-fund
Program Email: [email protected]
Gustavo Velasquez, Director
Department of Housing and Community Development
2020 West El Camino Avenue, Suite 150, Sacramento, CA 95833 (916) 746-1239
Contact Name: Sara Thornton
Trisha Isom
316 Vernon St. #150 State: CA Zip Code:
316 Vernon Street #150 City:
City:
CA
Housing Trust Fund
Trust Fund Address: City:
Trust Fund Information
State:
Rev. 4/2022
Phone:
Roseville
Roseville
Auth Rep. Email: [email protected]
Project and Applicant Information
§102 Eligible Applicants
Applicant Name:
Applicant Information
Organization Type:
Address:
§101(p) “Local Housing Trust Fund” definition
Address: State: Zip Code:
City of Roseville Local Public Entity
§101(dd) “Regional Housing Trust Fund” definition.
Applicant Type: (a) City
Housing Manager
Address: 316 Vernon Street #150
(a) The minimum application request shall be $1 million with a max request of $5 million. $4,057,451 95678
County: Placer
Title: Housing Analyst
State: 95678
CA Zip Code:
Contact Email:
CA
Title:
316 Vernon Street #150 City: Roseville 95678
Trust Fund Type: (a) Existing Local Housing Trust Fund (or Existing Regional Housing Trust Fund) Date Established 10/20/04
95678
Auth Rep Name:
On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and correct and I Authorized Representative Printed Name Title
Dominick Casey
Signature (Please Type Name) Date
Dominick Casey City Manager 4/27/2022
Certifications
$2,000,000
8/1/2022
6/1/2024
6/1/2024
Hayden Parkway Apartments
Royer Street Apartments
Pleasant Grove Apartments
1/13/2022
1/13/2022
1/13/2022
$1,250,000
$1,750,000
$1,250,000
When do you
anticipate
disbursement of
LHTF funds?
When will loan
closing
occur?
[email protected] Phone: (916) 774-5295
Rental new construction
Rental new construction
Proposed Activity Timeline - provide a timeline of implementation of your Project(s) (§101(g), (1)(2)(3)&(4)) 6/1/2021
6/1/2021
6/1/2021
When will you issue
commitments? Name of Project
Amount of
Program
Funds
designated
to project:
Project Type and Activity
Amount of
Matching
Funds
designated to
project:
Rental new construction
When will you
issue a
NOFA/RFQ?
Zip Code:
Amount of LHTF Program Funds Requested
Full Trust Fund Name:
Roseville
$1,750,000
$2,000,000
8/1/2022
6/1/2024
6/1/2024
Total Awarded $ 1,135,761
Total
Committed $ 1,135,761
What is the simple interest rate for
Program Funded Loan(s)
Applicant has adopted the Uniform Multifamily Regulations (UMRs) as their loan guidelines, underwriting standards, and procedures.
The UMRs can be found on our website at https://hcd.ca.gov/grants-funding/already-have-funding/uniform-multifamily-regulations/docs/uniform-multifamily-regulations-2017.pdf Yes NOFA Section II(G)(1)(f) Loan Guidelines and Underwriting Standard and Procedures 105(a) 105(b)
Minimum Amount of Matching Funds $1,217,235 $0 $2,637,343 Total Program Funds accounted for:
100%
Ongoing Revenue
Select Type of Ongoing
Revenue Specify Source of Funds Annual average amount
deposited into the HTF
Match_Fund_1 Uploaded to HCD?
Loan Repayments Developer Loan $50,000 Ongoing_Rev_1 Uploaded to HCD? Example:
Taxes Taxes Uploaded to HCD?
Name of Ongoing Revenue Required documentation for Ongoing Revenue NOTE: Executed documentation only; no drafts
Affordable Housing Developer
Subsidies Loan Repayments
Loan Repayments Affordable Housing Developer Subsidies $4,057,451 Match_Fund_1 ExamplePublic Contribution
Total Matching Funds $4,057,451
Uploaded to HCD?
ExamplePublic Contribution
ExampleResidential Local Impact Fee Example- Residential local impact fees $3,000,000 Enter the dollar amount of Program Funds that have been committed from all previous LHTF awards (leave blank if not previously awarded) Matching Funds Committed
Loan Payoffs
$5,000,000 Match_Fund_2
§104 Matching Funds Requirements
§102 Eligible Applicants §103 Funding Amount
Minimums and Maximums
Applicant Type: (a) City
(a) Existing Local Housing
Trust Fund (or Existing
Regional Housing Trust
Fund)
$4,057,451
(a)(3) The city or county has submitted to HCD the Annual Progress Report required by GC Code §65400 for the current or prior year? Yes Amount Requested:
Yes
(a)(1)(A) How was the Housing Trust Fund established?
The Housing Trust Fund utilizes a public, or joint public and private, fund established by legislation, ordinance, resolution, or a public-private partnership, to receive specific revenue to address local housing needs.
From the dropdown list please select the documentation that establishes the HTF. Please highlight the sections in your documentation that outline the reqirements below. - Language establishing the Local Housing Trust Fund
- Identify the specific revenue given to the Local Housing Trust Fund - Identify the language that states the Housing Trust Fund addresses the local housing needs - NOTE: For public RHTFs only, RHTF must include Resolution or Ordinance from each Local government entity that is a member of the RHTF Resolution
(a)(1)(B) Does the Housing Trust Fund meet the minimum Ongoing Revenue requirements? The Trust Fund is funded from Ongoing Revenues as required by the definition in §101 from Dedicated Sources of funding such as taxes, fees, loan repayments, or public or private contributions.
Please see requirements in Section 101(z).
Yes: The existing HTF meets
the Ongoing Revenues
requirement averaging
$100k/year for a min. of 3yrs
after Program award date
(a)(2) Does the city or county have a Housing Element that was adopted by the city or county’s governing body and determined by HCD to be in compliance with state Housing Element law pursuant to GC §65585?
(4) A Local Housing Trust Fund or Regional Housing Trust Fund that was created, funded, and operated by a combination of two or more cities or counties, agrees to utilize Program Funds only for Eligible Projects located in cities or counties that have, at the time of application, an adopted Housing Element meeting the requirements of subparagraph (2) above, and for which the Annual Progress Report was submitted for the current or prior year by the application deadline date, as required by subparagraph (3) above? (Should we make applicant enter in their HE compliance date and remove dropdown)?
Yes
Name of Matching Funds Select Type of
Matching Fund Specify Source of Funds Matching Fund Amount Required Documentation for Matching Funds New Applicants (no previous LHTF award) provide the amount of local Matching Funds that have been committed (leave blank if previously awarded) ExampleLand Donation
§102(d): Previous Awardees
Developer Loan $1,000,000 Ongoing_Rev_1 Resolution
§105 Eligible Uses of Funds
105(a): How will Program Funds be used by the Grantee?
Note: Please reference the 2022 LHTF NOFA (II.G.2. Rating and Ranking) for details regarding scoring Total Ongoing Revenues $1,000,000
Will Program Funds be used
toward administrative
expenses? (5% Maximum)
3% Yes 30%
Enter percentage of Program
Funds designated to serving
housholds no higher then 30%
Area Median Income
105(c)
0%
Enter percentage of Program
Funds designated to serving
housholds no higher then
120% Area Median Income
105(d)
65%
Enter percentage of Program
Funds designated to serving
housholds no higher then
80% Area Median Income
105(e)
Ongoing_Rev_2
Example:
Loan Repayments
Residential local impact fees $40,000
Example- The public contribution will be from foreclosed land.
Date
Certification & Legal Status
Civil Matters
Legal Disclosure
For purposes of the following questions, and with the exceptions noted below, the term “applicant” shall include the applicant and joint applicant, and any subsidiary of the applicant or joint applicant if the subsidiary is involved in (for example, as a guarantor) or will be benefited by the application or the project.
In addition to each of these entities themselves, the term “applicant” shall also include the direct and indirect holders of more than ten percent (10%) of the ownership interests in the entity, as well as the officers, directors, principals and senior executives of the entity if the entity is a corporation, the general and limited partners of the entity if the entity is a partnership, and the members or managers of the entity if the entity is a limited liability company. For projects using tax-exempt bonds, it shall also include the individual who will be executing the bond purchase agreement.
The following questions must be responded to for each entity and person qualifying as an "applicant," or "joint applicant" as defined above.
Explain all positive responses on a separate sheet and include with this questionnaire in the application.
Exceptions: Public entity applicants without an ownership interest in the proposed project, including but not limited to cities, counties, and joint powers authorities with 100 or more members, are not required to respond to this questionnaire.
Members of the boards of directors of non-profit corporations, including officers of the boards, are also not required to respond. However, chief executive officers (Executive Directors, Chief Executive Officers, Presidents or their equivalent), and chief financial officers (Treasurers, Chief Financial Officers, or their equivalent) must respond.
6. Is the applicant currently a party to, or the subject of, or been notified that it may become a party to or the subject of, any criminal litigation, proceeding, charge, complaint, examination or investigation, of any kind, involving, or that could result in, felony charges against the applicant? No
1. Has the applicant filed a bankruptcy or receivership case or had a bankruptcy or receivership action commenced against it, defaulted on a loan or been foreclosed against in past ten years ? No
2. Is the applicant currently a party to, or been notified that it may become a party to, any civil litigation that may materially and adversely affect (a) the financial condition of the applicant’s business, or (b) the project that is the subject of the application? No
3. Have there been any administrative or civil settlements, decisions, or judgments against the applicant within the past ten years that materially and adversely affected (a) the financial condition of the applicant’s business, or (b) the project that is the subject of the application? No
4. Is the applicant currently subject to, or been notified that it may become subject to, any civil or administrative proceeding, examination, or investigation by a local, state or federal licensing or accreditation agency, a local, state or federal taxing authority, or a local, state or federal regulatory or enforcement agency?
No
5. In the past ten years, has the applicant been subject to any civil or administrative proceeding, examination, or investigation by a local, state or federal licensing or accreditation agency, a local, state or federal taxing authority, or a local, state or federal regulatory or enforcement agency that resulted in a settlement, decision, or judgment?
No
Criminal Matters
7. Is the applicant currently a party to, or the subject of, or been notified that it may become a party to or the subject of, any criminal litigation, proceeding, charge, complaint, examination or investigation, of any kind, involving, or that could result in, misdemeanor charges against the applicant for matters relating to the conduct of the applicant’s business?
No
8. Is the applicant currently a party to, or the subject of, or been notified that it may become a party to or the subject of, any criminal litigation, proceeding, charge, complaint, examination or investigation, of any kind, involving, or that could result in, criminal charges (whether felony or misdemeanor) against the applicant for any financial or fraud related crime?
No
9. Is the applicant currently a party to, or the subject of, or been notified that it may become a party to or the subject of, any criminal litigation, proceeding, charge, complaint, examination or investigation, of any kind, that could materially affect the financial condition of the applicant’s business? No
10. Within the past ten years, has the applicant been convicted of any felony? No
11. Within the past ten years, has the applicant been convicted of any misdemeanor related to the conduct of the applicant’s business? No
12. Within the past ten years, has the applicant been convicted of any misdemeanor for any financial or fraud related crime? No Printed Name Title of Signatory Signature (Please Type Name) Please provide a letter of explanation if you responded "Yes" to any of the questions above.
Trisha Isom Housing Manager Trisha Isom 4/27/22
Funding for
Permanent AND
Construction
financing for 60%
AMI or less
90%
Loan Type
Loan Type
Loan Type
Loan Type
Loan Type
Loan Type
Loan Type
Loan Type
Loan Type
Project Name Funding Source Commitment Amount Loan Type Commitment vs. Request 216%
Project Name Funding Source Commitment Amount
Project Name Funding Source Commitment Amount
Project Name Funding Source Commitment Amount
Project Name Funding Source Commitment Amount
Project Name Funding Source Commitment Amount
Project Name Funding Source Commitment Amount
Project Name Bridge Housing Corporation Funding Source Commitment Amount $ 3,500,000 Permanent Project Name Hampstead Development Partners, Inc. Funding Source Commitment Amount $ 1,250,000 Construction Project Name Mercy Housing California Funding Source Commitment Amount $ 4,000,000 Permanent Application Score - 100 points max §106(f) Rev. 4/2022 70 (1) Non-Residential Matching Funds - 15 points max 15
Matching Funds (sources other than residential Local Impact Fees or In Lieu Fees) $4,057,451 Total Matching Funds $4,057,451 % of Matching Funds 100.00% (2) Deeper Income Targeting - 20 points max 20
Does Applicant commit to expend no more than 18% of its Program Funds and Matching Funds on Moderate-Income (MI) households? Yes If yes, select MI exp. % 0% Program + Matching Funds - Admin Exp. $7,709,157 Max MI exp.
(per
commitment)
Total Amount of pre-approved
First Phase Funding $10,000,000 Total Program Funds Requested $4,057,451 First Phase Funding vs. Requested (times) 2 $0
(3) Readiness - 15 points max 10
Has Applicant completed a first phase funding process for multifamily rental projects and announced on its website the status of each project, including those projects that were approved to submit a final application upon award of Program Funds by HCD §106(f)(3)?
Yes
Direct link (website
address) to page
showing project status:
$ 2,500,000
$ 3,500,000
$ 4,000,000
www.roseville.ca.us/housing
(4) Increasing the Supply of Lower-Income (LI) Rental Housing - 20 points max 15 How will the Applicant use the
HCD Program Funds and
Matching Funds - for permanent
or construction financing?
Permanent
(A) Program Funds +
Matching Funds -
Admin Exp.
$7,709,157
(B) Percentage of Program Funds and Matching Funds
Applicant commits to use for new construction of rental housing developments Affordable to and restricted to
households with average incomes of no more than 60%
of AMI?
(5) Community Need - 15 points max (NOTE: this section will be scored by HCD using CHAS data (Comprehensive Housing Affordability Strategy): https://www.huduser.gov/portal/datasets/cp.html#2006- 2016-datacollapse 0
HCD will provide the percentage of Lower-Income Households paying more than 50 percent of their household income for rent or owner expenses. Applicant does not complete this field. (6) Regional Housing Trust Fund Applicants - 5 points Does your Regional Housing Trust Fund meet the description and requirements below? N/A 0 (C) Amount
Applicant
commits based
on (B) %
$6,938,241
A Regional Housing Trust Fund meeting the description herein receive all points in this category: A Regional Housing Trust Fund is one that includes six jurisdictions (in counties with total populations of 250,000 or less) or eight jurisdictions (in counties with more than 250,000), or that meets the minimum threshold (two jurisdictions with more than one million people, or three jurisdictions in counties with total populations of 250,000 or less, or four jurisdictions in counties with more than 250,000), and includes more than 66% of the population of the county or counties.
List the jurisdictions that your trust fund serves: City of, County of, or Town of Are you serving the unincorporated county only, or the entire county including all incorporated areas?
Of those served, which Jurisdictions will
be served with this application.
Tom McClintock 4 Jim Nelson 4 Kevin Kiley 6
List the appropriate representatives from the areas that the Applicant serves.
Congressperson Name(s)
(First and last name) District # State Senator Name(s)(First and last name) District # State Assembly Member Name(s)(First and last name) District # Tie Breaker, if needed. Readiness: The extent to which the application identifies specific multifamily rental projects for which the trust fund has issued Letters of Intent (LOIs) to developers for construction or permanent financing, (which includes dollar amounts). Explain below.
Tie Breaker
10 New Applicant (not previously awarded) has committed at least 40 percent of the local Matching Funds - 10 points 0 (7) Performance - Applicant has committed at least 40 percent of the Program Funds previously awarded to the Applicant - 10 points www.roseville.ca.us/housing
www.roseville.ca.us/housing
Direct link to website
Direct link to website
Direct link to website
Direct link to website
Direct link to website
Direct link to website
Direct link to website
Direct link to website
Direct link to website
Direct link to website
Project Name Pleasant Grove Apartments Pre-approved Amount Pre-approved Amount
Pre-approved Amount
Pre-approved Amount
Pre-approved Amount
Pre-approved Amount
Pre-approved Amount
Pre-approved Amount
Pre-approved Amount
Pre-approved Amount
Project Name
Project Name
Project Name
Project Name
Project Name
Project Name
Project Name
Project Name
Project Name
Royer Street Apartments
Hayden Parkway Apartments
LOCAL HOUSING TRUST FUND (LHTF) Document Checklist
Use this document to properly name your attachments before uploading them with your application submission.
You must confirm below that you have completed this step.
Threshold
Requirement? What You'll Name Your Document: Document Description Included? §102(d) Eligible Applicants: Previous Awardees
Yes Award_Commitment Previously awarded applicants only. Documentation evidencing the commitment of at least 40% of the previously awarded LHTF funds. Included
Application Information
Yes HTF
§102(a),(b),(c): Legislation, Ordinance, Resolution, or public-private partnership agreement creating the HTF.
RHTF must include Resolution or Ordinance from each Local government entity that is a member of the RHTF (public RHTFs only).
Included
Yes LHTF_AR Previously awarded applicants only. §106(e) Submit evidence that the most recently required LHTF Annual Report was submitted to HCD State Grants Management (e.g. include a copy of the email submission) Included No MF_Commitment New Applicants only. Documentation evidencing the commitment of at least 40% of the local Matching Funds. N/A New Applicants (no previous LHTF award)
Yes
(if applicable) Gov_TIN_Form §106(e) Government Agency Taxpayer ID Form Included Yes
(if applicable) OrgDoc1, OrgDoc2, etc. §106(e) Organizational Documents (Articles of Incorporation, Bylaws, Amendments, Certificate of Good Standing, etc.) Included
Yes
(if applicable) Org_Chart §106(e) Organizational Chart Included Yes
(if applicable) STD_204 §106(e) STD-204 Payee Data Record N/A Yes
(if applicable) Fin_Statements 501(c)(3) nonprofit corporation only §106(e) - Audited financial statements (2 years) N/A Yes
(if applicable) Sig_Block 501(c)(3) nonprofit corporation only §106(e) - Signature Block, upload as a Microsoft Word document N/A Yes
(if applicable) 501c3_Determination 501(c)(3) nonprofit corporation only §106(e) - IRS determination letter regarding 501(c)(3) status (this letter must address the name of the 501(c)(3), which must match the name of the HTF) N/A Yes Match_Fund_1, Match_Fund_2, etc. §104 Required Documentation for Matching Funds Included Yes App_Reso
§106(e) Application Resolution Note: Only one Application Resolution may be submitted and must be from the Applicant. Additionally, Attachment 1 must be an attachment to the Resolution prior to approval by the governing body and must be included with your submission.
Included
Yes Ongoing_Rev_1, Ongoing_Rev_2, etc. §102(a),(b),(c) Required Documentation for Ongoing Revenues Included Yes Guidelines_107d §107(d) Loan guidelines and underwriting standards and procedures Included Yes
(if applicable) Binding_Agreement
§104(b) Fully executed commitment letter or a fully executed contract to provide Matching Funds, specifying the source(s) of the Matching Funds, the amount of Matching Funds from each source, the date upon which the funds will be deposited into the LHTF or RHTF account, and remedies for not depositing the Matching Funds on/by that date.
N/A
I have reviewed the Document Checklist and have named my documents according to the instructions.
I will upload all required documents to the LHTF submission portal.
Yes
Matching Funds and Ongoing Revenue
Yes
(if applicable) Cert_LOE Letter of Explanation for any applicable items on "Certification & Legal" tab of the application N/A §106 Application Scoring
No Readiness_1, Readiness_2, etc. §106(f)(3) Readiness List N/A No LOI_1, LOI_2, etc. §106(g)(1) Letter(s) of Intent N/A
COUNCIL COMMUNICATION
CC #: 2066
File #: 0400-04-13-1
Title: Creekview Phase 2 Village 16 - Notice of Completion Contact: Troy Galvin 916-223-7441 [email protected] Meeting Date: 5/18/2022
Item #: 6.7.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt the attached resolution accepting Creekview Phase 2 Village 16, CWJ# 190460 as complete and authorizing the City Engineer to execute the Notice of Completion.
BACKGROUND
The Engineering Division has made a final inspection of the above project and has found the roadway infrastructure work complete in accordance with the improvement plans and City specifications.
FISCAL IMPACT
The actions requested as part of this action have no impact to the City's General Fund.
Construction costs were paid by the developer.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Approval of a Notice of Completion meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Troy Galvin, Construction Inspector
Mike Isom, Development Services Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-155
NOC
Exhibit A - Location Map
Final Map
RESOLUTION NO. 22-155
RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEVILLE ACCEPTING THE PUBLIC WORK KNOWN AS CREEKVIEW PHASE 2 VILLAGE 16 PROJECT, APPROVING THE "NOTICE OF COMPLETION", AND AUTHORIZING AND DIRECTING THE CITY
ENGINEER TO EXECUTE SAID NOTICE ON BEHALF OF THE CITY OF ROSEVILLE,
THEREFORE, AND ACCEPTING ALL DEDICATIONS OFFERED ON THE RECORDED MAP OF THE SUBDIVISION.
BE IT RESOLVED by the Council of the City of Roseville as follows:
1. The "Notice of Completion" on file in the City Clerk's Department relative to that public work known as the Creekview Phase 2 Village 16 is hereby approved and the public work accepted.
2. All rights of way and easements as offered on the final map as recorded with Placer County Recorder’s Office Book FF of Maps, Page 66 is hereby accepted.
3. The City Engineer is hereby authorized and directed to execute said Notice on behalf of the City of Roseville.
PASSED AND ADOPTED by the Council of the City of Roseville, this 18 th day of May, 2022, by
the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
CITY CLERK
RECORDING REQUESTED BY AND WHEN
RECORDED MAIL TO:
CITY CLERK
CITY OF ROSEVILLE
311 VERNON STREET
ROSEVILLE, CA 95678
Exempt from recording fees
Pursuant to Gov’t Code §27383
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that the public work of improvement known as the Project was completed and
accepted by the City of Roseville on . The location is
situated in the City of Roseville, County of Placer, State of California and is indicated on the attached map, marked as Exhibit “A” and incorporated herein by this reference. The real property herein described is owned by the City of Roseville, 311 Vernon Street, Roseville CA 95678.
The direct/general contractor on said project was .
The surety on said project was
.
___________________________________
City of Roseville
Owner
ATTEST:
________________________________ _
Carmen Avalos, City Clerk
State of California )
County of Placer )
I, , being first duly sworn, depose and say: I am the
of the City of Roseville, a municipal corporation in the State of California, owner of the property described in the above Notice. I am duly authorized to make this verification for and on behalf of the City of Roseville. I have read the Notice of Completion and know its contents and the facts stated therein are true.
___________________________________
City of Roseville
State of California )
County of Placer )
Subscribed and sworn to (or affirmed) before
me on this _____ day of ,
20___,
proved to me on the basis of satisfactory
evidence to be the person(s) who appeared
before me.
____________________________________
Place Notary Seal and/or Stamp Above Signature of Notary Public A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
LOWERBANK DR
BLUE OAKS BL
WESTBROOK BL
Exhibit A: Location Map
City of Roseville
Creekview Phase 2
Village 16
Project
Location
0 0.13 0.25
Miles
BLUE OAKS
FIDDYMENT SANTUCCI
W
E
S
T
B
ROO
K
PLEASANT GROVE
COUNCIL COMMUNICATION
CC #: 2067
File #: 0400-04-13-1
Title: Creekview Phase 2 Village 17 - Notice of Completion Contact: Troy Galvin 916-223-7441 [email protected] Meeting Date: 5/18/2022
Item #: 6.8.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt the attached resolution accepting Creekview Phase 2 Village 17, CWJ# 190464 as complete and authorizing the City Engineer to execute the Notice of Completion.
BACKGROUND
The Engineering Division has made a final inspection of the above project and has found the roadway infrastructure work complete in accordance with the improvement plans and City specifications.
FISCAL IMPACT
The actions requested as part of this action have no impact to the City's General Fund.
Construction costs were paid by the developer.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Approval of a Notice of Completion meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Troy Galvin, Construction Inspector
Mike Isom, Development Services Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-156
NOC
Exhibit A - Location Map
Final Map
RESOLUTION NO. 22-156
RESOLUTION OF THE COUNCIL OF THE CITY OF ROSEVILLE ACCEPTING THE PUBLIC WORK KNOWN AS CREEKVIEW PHASE 2 VILLAGE 17 PROJECT, APPROVING THE "NOTICE OF COMPLETION", AND AUTHORIZING AND DIRECTING THE CITY
ENGINEER TO EXECUTE SAID NOTICE ON BEHALF OF THE CITY OF ROSEVILLE,
THEREFORE, AND ACCEPTING ALL DEDICATIONS OFFERED ON THE RECORDED MAP OF THE SUBDIVISION.
BE IT RESOLVED by the Council of the City of Roseville as follows:
1. The "Notice of Completion" on file in the City Clerk's Department relative to that public work known as the Creekview Phase 2 Village 17 is hereby approved and the public work accepted.
2. All rights of way and easements as offered on the final map as recorded with Placer County Recorder’s Office Book FF of Maps, Page 67 is hereby accepted.
3. The City Engineer is hereby authorized and directed to execute said Notice on behalf of the City of Roseville.
PASSED AND ADOPTED by the Council of the City of Roseville, this 18th day of May, 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
CITY CLERK
RECORDING REQUESTED BY AND WHEN
RECORDED MAIL TO:
CITY CLERK
CITY OF ROSEVILLE
311 VERNON STREET
ROSEVILLE, CA 95678
Exempt from recording fees
Pursuant to Gov’t Code §27383
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that the public work of improvement known as the Project was completed and
accepted by the City of Roseville on . The location is
situated in the City of Roseville, County of Placer, State of California and is indicated on the attached map, marked as Exhibit “A” and incorporated herein by this reference. The real property herein described is owned by the City of Roseville, 311 Vernon Street, Roseville CA 95678.
The direct/general contractor on said project was .
The surety on said project was
.
___________________________________
City of Roseville
Owner
ATTEST:
________________________________ _
Carmen Avalos, City Clerk
State of California )
County of Placer )
I, , being first duly sworn, depose and say: I am the
of the City of Roseville, a municipal corporation in the State of California, owner of the property described in the above Notice. I am duly authorized to make this verification for and on behalf of the City of Roseville. I have read the Notice of Completion and know its contents and the facts stated therein are true.
___________________________________
City of Roseville
State of California )
County of Placer )
Subscribed and sworn to (or affirmed) before
me on this _____ day of ,
20___,
proved to me on the basis of satisfactory
evidence to be the person(s) who appeared
before me.
____________________________________
Place Notary Seal and/or Stamp Above Signature of Notary Public A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
LOWERBANK DR
BLUE OAKS BL
WESTBROOK BL
Exhibit A: Location Map
City of Roseville
Creekview Phase 2
Village 17
Project
Location
0 0.13 0.25
Miles
FIDDYMENT
BLUEOAKS
SANTUCCI
W
E
S
T
B
ROO
K
PLEASANT GROVE
COUNCIL COMMUNICATION
CC #: 2085
File #: 0721 & 0214
Title:
Federal Transit Administration Low or No Emission Vehicle Program and Buses and Bus Facilities Program - Grant Applications
Contact: Ed Scofield 916-869-9109 [email protected] Meeting Date: 5/18/2022
Item #: 6.9.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager or his designee to submit a Federal Transit Administration (FTA) Fiscal Year 2022 §5339(c) Low or No Emission Vehicle Program grant application and a §5339(b) Buses and Bus Facilities Program grant application for an amount not to exceed $13,600,000 for the purchase of up to seven zero-emission electric transit buses, up to eight zero-emission electric transit cutaway buses, up to five electric chargers and the necessary electrical work, and to execute the related forms and agreements necessary for implementation of the grant and for use of the funds should the grant funds be awarded.
BACKGROUND
State legislative mandates, state and federal funding support, and advancements in bus electrification technology, have encouraged Alternative Transportation staff to continue the pursuit of transit fleet electrification. As part of Roseville Transit’s transition from diesel and gas powered buses to zero-emission electric buses, staff is submitting grant requests to purchase seven commuter electric buses to replace existing commuter buses that were put into service in 2009 and eight electric cutaway buses to replace existing cutaway buses that were put into service in 2014. Additionally, staff will include the necessary charging equipment and their related installation costs to charge these buses. This grant request will include up to six new chargers and six dispensers. These purchases are consistent with the Roseville Short Range Transit Plan's Fleet Utilization and Replacement Plan, as well as Roseville Transit’s most recent Transit Asset Management Plan.
On March 7, 2022, FTA announced approximately $1.7 billion available for Fiscal Year 2022 grants to help modernize bus fleets and bus facilities across the country, including to help transit agencies purchase low or no emission vehicles. The 5339(c) Low or No Emission Vehicle Program consists of over $1.1 billion in available funding, while the 5339(b) Buses and Bus Facilities Program consists of $545 million in available funding. For this particular funding request, Roseville Transit qualifies to submit the same application to both programs. If the project submitted for consideration under both programs is selected for funding, FTA will exercise its discretion to determine under which program the project will receive funding.
Due to the highly competitive nature of this grant, staff is planning to partner with Proterra, which is a leader in the design and manufacture of zero-emission electric transit vehicles, Optimal-EV, which is the market leader in design, engineering, and manufacturing of zero-emission electric lowfloor cutaway buses, and ABC Companies, which is a leader in bus and transit equipment sales and service, with this grant. Staff intends to purchase the commuter buses from Proterra and the cutaway buses from Optimal-EV. Both bus purchases will go through the State’s existing procurement contract using ABC Companies. Staff hopes that this partnership will provide a stronger application that stands out from other agencies seeking funding from the same grant source.
City staff is requesting Council authorization to apply for both the 5339(c) and 5339(b) programs.
This grant proposal would pay for 85% of the vehicles and 90% of the necessary charging equipment. The remaining 15% for the vehicles and 10% for the equipment, which represents the minimum local match, would likely come from local transportation funds. There’s also a requirement that 5% of the grant award go towards workforce development. For this workforce development requirement, the grant funding would pay for 80% of the development, with the local match covering the remaining 20%.
In 2018, the California Air Resources Board mandated that California transit bus fleets must be converted to zero-emission vehicles by 2040 and that all bus purchases in 2029 and after must be zero emission buses. Staff continues to work towards satisfying this mandate. Construction is about to begin on the Corp Yard electric bus charging facility. This facility will be the charging location for these new buses once acquired. If successful with this grant application, the bus procurement will take approximately two years to complete.
FISCAL IMPACT
The total estimated cost of the buses, including infrastructure costs, is anticipated to be up to $13,600,000. If successful, either the 5339(b) Buses and Bus Facilities Program grant or the 5339(c) Low or No Emission Vehicle Program would pay for up to $11,150,000. The remaining $2,150,000 would be paid by local transportation funds. Staff will continue to seek other grant opportunities, such as the State of California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program (HVIP), to help fund the balance of this bus purchase. In the event that FTA awards a lesser grant amount, staff will purchase fewer buses and the local funds will be reduced proportionally to meet the required 85/15 match for buses, 90/10 match for equipment and 80/20 for workforce development. Staff will present a final funding plan for the project to the City Council at a future meeting. No General Fund resources will be used for this project.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.
The approval of grant applications meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal C - Maintain a safe and healthy community
Goal E - Deliver exceptional city services
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Ed Scofield, Transit Operations Analyst
Jason Shykowski, Public Works Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-163
RESOLUTION NO. 22-163
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SUBMIT FEDERAL TRANSPORTATION ADMINISTRATION FISCAL YEAR 2022 §5339(c) LOW OR NO EMISSION VEHICLE PROGRAM AND §5339(b) BUSES AND BUS FACILITIES
PROGRAM GRANT APPLICATIONS AND TO EXECUTE ALL RELATED
FORMS AND AGREEMENTS
WHEREAS, Federal Transit Administration (FTA) Fiscal Year 2022 funds are available to help modernize bus fleets and bus facilities across the country, including the purchase of low or no emission vehicles; and
WHEREAS, staff requests authorization for the City Manager to submit the FTA §5339(c) Low or No Emission Vehicle Program and §5339(b) Buses and Bus Facilities Program grant applications for the purchase of up to seven zero-emission electric transit buses, eight zeroemission electric transit cutaway buses and five electric charges and the necessary electrical work.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Roseville that the City Manager or his designee is hereby authorized to submit the Federal Transportation Administration (FTA) Fiscal Year 2022 §5339(c) and §5339(b) grant applications and to execute and submit all applications, forms, certifications and agreements reasonably necessary for implementation of the grants and for use of available Section 5339(c) and Section 5339(b) funds.
PASSED AND ADOPTED by the Council of the City of Roseville this day of , 20 , by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
COUNCIL COMMUNICATION
CC #: 2080
File #: 1001-01
Title:
Portion of Right of Way South of Lot 7038 on Elefa Street - Disposition of City Interests
Contact: Karen Vences 916-774-5412 [email protected] Meeting Date: 5/18/2022
Item #: 6.10.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council take the following action:
1. Adopt the attached resolution vacating the right of way (ROW) and all interests, if any, therein, in the portion of ROW south of Lot 7038; further finding therein that the portion of ROW south of Lot 7038 is surplus, not necessary for the City's use, is in the City's best interest to dispose of as described herein, and is exempt from the Surplus Land Act; and authorize the City Manager to execute a Quitclaim Deed of the portion of ROW south of Lot 7038 to Albert Francis Development, Inc., the escrow instructions, if applicable, and any other documents required to effectuate the conveyance of the abandoned interests in the portion of ROW south of Lot 7038.
2. Authorize the City Clerk or their designee to record the Quitclaim Deed, the Resolution, and anything else necessary to effectuate the intent of these actions, at the Recorder's Office of Placer County, after the City has complied with the 30-day California Department of Housing and Community Development review process.
BACKGROUND
Albert Francis Development, Inc. submitted the attached preliminary improvement plans to the City's Development Services Department for approval. The preliminary improvement plans are for the development of multiple single-family homes on a lot adjacent to an unused piece of City ROW. In order to make the development plan work, Albert Francis Development, Inc. was told they would need to acquire from the City the portion of unused ROW herein described as the portion of ROW south of Lot 7038 (Exhibit A and B, incorporated herein by this reference).
Staff have confirmed there are no utilities within the portion of ROW south of Lot 7038, and no plans to use the portion of ROW south of Lot 7038 for any future City or public purpose. It is typical for the City to retain right of way no further than the back of sidewalks.
Summary Vacation of Portion of ROW South of Lot 7038
The portion of ROW south of Lot 7038 was dedicated as public ROW on April 24, 1906, recorded at the Placer County Recorder's office and filed for record in Book C of Maps, Page 1.
The purpose for which the City maintained ownership in the portion of ROW south of Lot 7038 is unclear, and is not needed.
Pursuant to the Streets and Highway Code Section 8334, a City may summarily vacate excess ROW of a street or highway that is not required for street or highway purposes. Since the portion of ROW south of Lot 7038 is not needed for public road purposes, the ROW is now in excess of the City's need and is not being used or planned to be used in the future for a street or highway purpose.
Therefore, staff concludes that the condition of a summary vacation listed within the Streets and Highways Code Section 8334 applies, and recommends that the ROW be vacated.
Portion of ROW South of Lot 7038 Surplus Land Act Exemption In addition, the City does not have to comply with California's Surplus Land Act ("Act") procedures as described in Section 54200 et seq. of the California Government Code in order to transfer the surplus portion of ROW south of Lot 7038 to the developer. The Act defines "surplus land" as land owned by any government agency that the agency determines to be no longer necessary for the agency's use. Prior to disposal of surplus land, the disposing agency must notify local public and affordable housing developers, park, recreation and open space agencies and others of the availability of the surplus land and the agency must negotiate in good faith with any entity that responds to the notice. However, certain public lands are exempt from this notice requirement.
According to Section 54221(f) of the Act, land is exempt from the surplus procedures if it is, in relevant part, either of the following: (B) surplus land that is less than 5,000 square feet in area; and/or, (E) surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property.
The exempt surplus portion of ROW south of Lot 7038 is 1,379 square feet in area, and is being transferred to an adjacent land owner. The portion of ROW south of Lot 7038 was also originally granted to the City for right of way purposes that are no longer necessary as described above, and will be transferred to the adjacent property owner of Lot 7038, as described above. Since this property satisfies at least one individual exemption characteristics from above—(B) and (E)—it is exempt from the Act’s procedures and can be disposed of pursuant to the procedures set forth in Section 4.12.110 of the Roseville Municipal Code.
Pursuant to the final regulations of the California Department of Housing and Community Development (HCD), Article IV, Section 400(e), a local agency must submit determinations of Act exempt status with written findings to HCD to allow for a 30-day review period prior to disposing of the exempt surplus land. Should City Council take the recommended actions above, and approve and authorize this vacation and disposition, those actions are ultimately contingent on HCD approval.
Portion of ROW South of Lot 7038 Disposition Under the Municipal Code Section 4.12.110(B) Excess real property determined by the City Council to be unusable except by the owner of adjoining privately owned real property may be offered for sale to such adjoining landowner at a price determined by the City Council to be equitable to the purchaser and the City. Additionally, any interest in real property may be sold or otherwise disposed of pursuant to a finding by the City Council that such disposition is in the City’s best interest. Based on the foregoing, this disposition is in the City’s best interest because it provides beneficial use, including the creation of housing, of the portion of ROW south of Lot 7038 that otherwise is not needed by the City and is otherwise unusable. The City has determined that the portion of ROW south of Lot 7038 is unusable except by the adjacent private real property owner of Lot 7038 because the surplus portion of ROW south of Lot 7038 would be developed as a single family residential home structure and required driveway/site access. Therefore, it is in the City’s best interests, based on the foregoing and in accordance with Municipal Code Section 4.12.110(B), to quitclaim the portion of ROW south of Lot 7038 without compensation.
FISCAL IMPACT
There is no fiscal impact to the City's General Fund associated with this approval.
ENVIRONMENTAL REVIEW
The project involves the conveyance of surplus City property not located within an area of statewide, regional, or area wide concern. This activity is categorically exempt from CEQA as a Class 12 exemption (State CEQA Guidelines Section 15312). The Exemption has been prepared and no further CEQA action is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal D - Enhance economic vitality
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Karen Vences, Assistant Engineer
Jason Shykowski, Public Works Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-161
Exhibit A and B
Site Plan
Form Quitclaim Deed
RESOLUTION NO. 22-161
ORDERING SUMMARY VACATION OF EXCESS RIGHT OF WAY AND ALL OTHER INTERESTS, IF ANY, IN A PORTION OF RIGHT OF WAY SOUTH OF LOT 7038;
FINDING AND DECLARING THAT PORTION OF THE RIGHT OF WAY SOUTH OF LOT 7038 TO BE EXEMPT SURPLUS LAND; AUTHORIZING THE CITY MANAGER
TO EXECUTE A QUITCLAIM DEED AND ANY OTHER DOCUMENTS REQUIRED TO
EFFECTUATE THE CONVEYANCE OF THE ABANDONED EXEMPT SURPLUS RIGHT OF WAY; AND FINDING IT TO BE IN THE CITY’S BEST INTEREST BE IT RESOLVED by the City Council of the City of Roseville as follows:
WHEREAS, the portion of right of way (ROW) south of Lot 7038, described and depicted in Exhibits A and B, attached hereto and incorporated herein by reference, consisting of 1,379 square feet in area, was dedicated as public ROW on April 24, 1906, recorded at the Placer County Recorder's Office and filed for record in Book C of Maps, Page 1, and the purpose for which the City maintained ownership in the portion of the ROW south of Lot 7038 is unclear and unneeded; and
WHEREAS, Albert Francis Development, Inc. submitted preliminary improvement plans for the development of multiple single-family homes on a lot(s) adjacent to the unused portion of ROW that is south of Lot 7038 and intends/requests to make beneficial use of that subject portion of ROW for access to and other purposes related to the development of housing on the adjacent lot(s); and
WHEREAS, no utilities are located within the portion of ROW south of Lot 7038, and there are no plans to use the portion of ROW south of Lot 7038 for any future City or public purpose; and
WHEREAS, in accordance with the provisions of Section 8334 of the Streets and Highways Code (Chapter 4, Summary Vacation), it is found that this excess ROW and any other interest, if any, can be summarily vacated; and
WHEREAS, the ROW south of Lot 7038 is now in excess of the City's need and is not being used or planned to be used in the future for street or highway purposes and will not be used for the purpose for which the City acquired it; and WHEREAS, the ROW south of Lot 7038, consisting of 1,379 square feet in area, as described and depicted in Exhibits A and B, is surplus land, not necessary for the City’s use, and is exempt from the California Surplus Land Act (Section 54200 et seq. of the California Government Code) pursuant to at least Section 54221(f)(1), (B) surplus land that is less than 5,000 square feet in area; and/or, (E) surplus land that is a former street, right of way, or easement, and is conveyed to an owner of an adjacent property; and WHEREAS, since this subject property is exempt from the Surplus Land Act procedures it can also be disposed of pursuant to the procedures set forth in Section 4.12.110 of the Roseville Municipal Code; and
WHEREAS, it is found and determined that the disposition of the subject portion of ROW is in the City’s best interest because it provides beneficial use, including the creation of housing and is needed for that site access, and that the subject portion of ROW is otherwise not needed by the City and is otherwise unusable.
NOW, THEREFORE, BE IT RESOLVED AND HEREBY ORDERED:
1. That the excess portion of ROW, and any other interest therein, described and depicted in Exhibits A and B, are hereby vacated and shall, as of the date of recordation of this resolution, no longer constitute City right of way; and
2. The portion of subject ROW, described in Exhibits A and B, is hereby declared as surplus to the needs of the City pursuant to Section 4.12.110 of the Roseville Municipal Code and is exempt surplus land for the purposes of the Surplus Land Act, and that disposition of the property is in the City’s best interest, as described above; and
3. The City Manager is hereby authorized to execute a Quitclaim Deed for the subject portion of ROW, described in Exhibits A and B, to Albert Francis Development, Inc., and any other documents required to effectuate the abandonment, vacation of the excess right of way and the conveyance of any other interest the City may have therein to Albert Francis Development, Inc., and may direct the City Attorney to prepare and may execute any additional documents, forms, or agreements as determined by the City Manager to be necessary to carry out the purpose of this Resolution; and
4. The City Clerk is hereby directed to cause a certified copy of this Resolution and Order, attested to by said Clerk under the seal of the City of Roseville, to be recorded in the Office of the County Recorder, and to record any other documents necessary to effectuate what is described herein, all subject to the City first complying with the California Department of Housing and Community Development thirty-day submittal and review period subsequent to the adoption of this Resolution.
[CONTINUED ON FOLLOWING PAGE]
PASSED AND ADOPTED by the Council of the City ofRoseville this day of , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT
COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
RECORDING REQUESTED BY:
APN No.: _____________________
WHEN RECORDED MAIL TO AND MAIL
TAX STATEMENTS TO:
SPACE ABOVE THIS LINE FOR RECORDERS USE
Quit Claim Deed
Exempt from fee per GC27383 and/or GC27388.1 (a)(2); document is executed or recorded by the state or any county, municipality, or other political subdivision of the state.
The undersigned grantor(s) declare(s):
Documentary transfer tax is $0.00; City transfer tax is $0.00. This conveyance is exempt from documentary transfer tax since a government agency is vacating interest and granting the same to a party in the best interests of the public/ City, and based on the limited value of otherwise unusable former right of way, R&T 11911. ( ) computed on full value of property conveyed, or·
( ) computed on full value less value of liens and encumbrances remaining at time of sale. ( ) Unincorporated area: (X) City of Roseville
( ) Realty not sold.
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The City of Roseville, a municipal corporation hereby REMISE(S), RELEASE{S) AND FOREVER QUITCLAIM(S) to ___________________________________________, a __________________________________________, (Grantee) that property in City of Roseville, County of Placer, State of California, described as:
See "Exhibit A" attached hereto and made a part hereof, and as depicted in "Exhibit B" attached hereto and made part hereof.
This Quitclaim Deed is being recorded for the purpose of vacating right of way and granting the City's interest, if any, to the Grantee, as described and shown in Exhibits A and B, concerning a portion of City right of way South of Lot 7038, which was dedicated to the City as public right of way on April 24, 1906, recorded at the Placer County Recorder's Office and filed for record in Book C of Maps, Page 1.
Mall Tax Statements to Grantee at address above
Date
The City of Roseville, a municipal corporation
Dominick Casey
City Manager
MAIL TAX STATEMENTS AS DIRECTED ABOVE
A notary public or other officer completing this certificate verifies only the Identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of __________ _
County of __________ _
On __________ before me, __________________ a Notary Public, personally appeared _______________________________ _,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/tbey executed the same in his/her/their authorized capaclty(les), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: ___________ _
Name: _____________ _
(Typed or Printed) (Seal)
COUNCIL COMMUNICATION
CC #: 2081
File #: 0500-01
Title: Utility Legal Services - Legal Services Agreement Contact: Gretchen Hakala 916-774-5325 [email protected] Meeting Date: 5/18/2022
Item #: 6.11.
RECOMMENDATION TO COUNCIL
Staff recommends that City Council adopt a resolution authorizing the City Manager to execute a Legal Services Agreement with the Law Offices of Susie Berlin.
BACKGROUND
The City of Roseville requires outside legal services from time to time to advise, assist, and represent the City as co-counsel with the City Attorney with respect to litigation, and to assist the City with respect to transaction matters. The Law Offices of Susie Berlin specializes in regulatory and commercial matters regarding energy and utility law, and will provide utility related legal services to the City.
FISCAL IMPACT
Legal services provided by this contract will be dependent upon needs as they occur during the year and thus cannot be forecast. All expenses will be paid from the Roseville Electric Department operating budget in the Electric Fund, as needed.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. (CEQA guidelines §15061(b)(3)).
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal E - Deliver exceptional city services
Respectfully Submitted,
Gretchen Hakala, Paralegal
Michelle Sheidenberger, City Attorney
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-162
SignedAgreement
RESOLUTION NO. 22-162
APPROVING AN AGREEMENT FOR LEGAL SERVICES, BY AND BETWEEN THE CITY
OF ROSEVILLE AND THE LAW OFFICES OF SUSIE BERLIN, AND AUTHORIZING THE
CITY MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE WHEREAS, an agreement for legal services, by and between the City of Roseville and The Law Offices of Susie Berlin, has been reviewed by the City Council; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said agreement is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.
PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
AGREEMENT FOR LEGAL SERVICES
THIS AGREEMENT is made and entered into this day of , 20 , by and between the City of Roseville, a municipal corporation (“CITY”), and the Law Offices of Susie Berlin, a California sole proprietorship (“ATTORNEY”); and WITNESSETH:
WHEREAS, CITY from time to time is in need of attorneys to provide legal services and assistance to the Roseville City Attorney (“City Attorney”); and WHEREAS, ATTORNEY is willing to provide such representation on an hourly and non-contingency fee basis.
NOW, THEREFORE, the parties agree as follows:
1. Scope of Services and Duties. CITY employs and retains ATTORNEY to provide legal services from time to time upon the request of the City Attorney to advise, assist and represent CITY as co-counsel with the City Attorney with respect to such litigation and transactional matters as may be referred to ATTORNEY by the City Attorney. ATTORNEY shall list the City Attorney as co-counsel of record on all pleadings and papers in referred cases, unless directed otherwise by the City Attorney.
Services shall also include an annual audit letter provided by ATTORNEY at no charge to CITY.
2. Specific Work Assignments. ATTORNEY shall receive work assignments from the City Attorney. The work assignments shall generally be communicated by written notice from the City Attorney to ATTORNEY. If a work assignment is communicated orally, ATTORNEY shall provide a written confirmation to the City Attorney describing the work assignment.
ATTORNEY shall take reasonable steps to keep CITY (and City Attorney) informed in writing of progress and immediately following any significant developments and/or meetings, and to respond to CITY inquiries. ATTORNEY shall list the City Attorney as co-counsel of record on all pleadings and papers in referred cases. The City Attorney’s Office shall be promptly provided a copy of all research work product, pleadings, briefs, documents and correspondence.
Work performed for CITY shall be performed by and/or supervised by attorneys who are approved by the City Attorney and experienced in the practice area in which the services are being performed.
[B:\City Attorney\agreement\Legal Services Agreements\Susie Berlin Legal Services Agreement.docx; 4/27/2022] 2 [B:\City Attorney\agreement\Legal Services Agreements\Susie Berlin Legal Services Agreement.docx; 4/27/2022]
3. Attorney-Client Relationship. This Agreement creates an attorney-client relationship between CITY and ATTORNEY. Accordingly, the legal services performed pursuant to this Agreement will be protected by the attorney-client privilege unless the CITY waives the privilege or a court determines that the legal services are not subject to the privilege.
4. Fees for Services. For legal services performed under this Agreement, CITY shall pay ATTORNEY in accordance with the following rates:
Principal Attorneys: $ 390 per hour for all legal services through June 30, 2022 $ 425 per hour beginning on July 1, 2022
Associate Attorneys: $ 300 per hour
Paralegal $ 175 per hour
Any proposed increase in the effective rates for future cases or matters must be preceded by at least a 90-day written notice to the City Attorney.
5. Costs and Expenses. In addition to compensation for fees, the CITY shall reimburse ATTORNEY for out-of-pocket costs and expenses actually incurred by ATTORNEY in connection with the legal services provided by ATTORNEY. Out-of-pocket costs and expenses, including, but not limited to, reasonable travel expenses, costs of serving pleadings, filing fees, other charges assessed by courts and other public agencies, court reporter’s fees, jury and witness fees, computer-assisted research charges, consultant and expert witness fees.
Reproduction costs incurred in the normal course of business, postage, long distance phone charges and fax transmission charges shall be considered ATTORNEY overhead and not directly charged to CITY.
Research exceeding one hour and multiple revisions of documents relating to single topics, although understandably necessary in situations that are unique or extremely complex, must be avoided and are subject to being disallowed for payment unless approved in advance by the City Attorney.
6. Statements and Payments. ATTORNEY shall provide monthly invoices to the CITY for all fees and expenses. The invoice shall be itemized to include, at a minimum, the time spent by each service provider, the total time spent by each service provider, and a description of services performed during the itemization period. ATTORNEY shall keep time in 1/10th of an hour increments. Invoices shall be considered due and payable upon receipt, and shall be overdue thirty (30) calendar days after receipt.
7. Term; Termination; Amendments. This Agreement shall be effective upon approval by the Roseville City Council and shall continue in effect until terminated by either party. This Agreement may be terminated by CITY, with or without cause, at any time upon written notice. However, ATTORNEY may terminate this Agreement only upon the consent of CITY or upon sixty (60) calendar days’ written notice. Upon termination, ATTORNEY shall turn over all client files to CITY.
3 [B:\City Attorney\agreement\Legal Services Agreements\Susie Berlin Legal Services Agreement.docx; 4/27/2022] There shall be no amendment or modification to this Agreement except by written agreement between the parties.
8. Certifications. ATTORNEY certifies that ATTORNEY accepts this employment because ATTORNEY has the time, energy and ability necessary to perform the duties required in an efficient, trustworthy and business-like manner. ATTORNEY certifies that ATTORNEY will do its utmost to serve CITY effectively and represent CITY’s interests vigorously and efficiently.
ATTORNEY certifies that neither ATTORNEY nor any of its personnel assigned under this Agreement has personal or financial interest in, nor any connection with, the matter or litigation which is the subject of this agreement, or with any of the personnel, officers, agents or employees of the parties to such matter or litigation.
9. Independent Contractor. ATTORNEY is and shall be considered an independent contractor with respect to the performance of legal services under this Agreement.
10. Insurance. ATTOREY agrees to continuously maintain, in full force and effect, the following minimum policies of insurance during the term of this Agreement.
COVERAGE LIMITS OF LIABILITY
Workers’ Compensation Statutory
Commercial General Liability $1,000,000 each occurrence $2,000,000 aggregate
Personal Injury:
$1,000,000 each occurrence
$2,000,000 aggregate
Automobile Liability $1,000,000 combined single limit
Professional Liability (errors and $1,000,000 per claim omissions)
a. Form. ATTORNEY shall submit a certificate evidencing such coverage for the period covered by this Agreement in a form satisfactory to Risk Management and the City Attorney, prior to undertaking any work hereunder. Any insurance written on a claims made basis is subject to the approval of Risk Management and the City Attorney. b. Additional Insureds. ATTORNEY shall also provide a separate endorsement form or section of the policy showing CITY, its officers, agents, employees and volunteers as additional insureds for each type of coverage, except for Workers’ Compensation and Professional Liability. Such insurance shall specifically cover the contractual liability of ATTORNEY. The additional insured coverage under the ATTORNEY’s policy shall be primary and noncontributory, as evidenced by a separate endorsement or section of the policy, and shall not seek contribution from CITY’s insurance or self-insurance. In addition, the additional insured coverage shall be at least as broad as the Insurance Services Office (“ISO”) CG 20 01 4 [B:\City Attorney\agreement\Legal Services Agreements\Susie Berlin Legal Services Agreement.docx; 4/27/2022] Endorsement. Any available insurance proceeds in excess of the specified minimum insurance coverage requirements and limits shall be available to the additional insureds. Furthermore, the requirements for coverage and limits shall be: (1) the minimum coverage and limits specified in this Agreement; or (2) the full coverage and maximum limits of any insurance proceeds available to the named insureds, whichever is greater.
c. Cancellation/Modification. ATTORNEY shall provide ten (10) calendar days’ written notice to CITY prior to cancellation or modification of any insurance required by this Agreement.
d. Umbrella/Excess Insurance. The limits of insurance required in this Agreement may be satisfied by a combination of primary and excess insurance. Any excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of CITY (if agreed to in a written contract) before CITY’s own insurance shall be called upon to protect it as a named insured. e. Subconsultants. ATTORNEY agrees to include in its contracts with all subconsultants the same requirements and provisions of this Agreement, including the indemnity and insurance requirements, to the extent they apply to the scope of the subconsultant’s work.
Furthermore, ATTORNEY shall require its subconsultants to agree to be bound to ATTORNEY and CITY in the same manner and to the same extent as ATTORNEY is bound to CITY under this Agreement. Additionally, ATTORNEY shall obligate its subconsultants to comply with these same provisions with respect to any tertiary subconsultant, regardless of tier. A copy of CITY’s indemnity and insurance provisions will be furnished to the subconsultant or tertiary subconsultant upon request.
f. Waiver of Subrogation. ATTORNEY hereby agrees to waive subrogation which any insurer of ATTORNEY may acquire from ATTORNEY by virtue of the payment of any loss under a Workers Compensation, Commercial General Liability or Automobile Liability policy. All Workers Compensation, Commercial General Liability and Automobile Liability policies shall be endorsed with a waiver of subrogation in favor of CITY, its officers, agents, employees and volunteers for all worked performed by ATTORNEY, its employees, agents and subconsultants.
g. Liability/Remedies. Insurance coverage in the minimum amounts set forth herein shall not be construed to relieve ATTORNEY of liability in excess of such coverage, nor shall it preclude CITY from taking such other actions as are available to it under any other provisions of this Agreement or law.
11. Indemnification. To the fullest extent allowed by law, ATTORNEY shall defend, indemnify, and save and hold harmless CITY, its officers, agents, employees and volunteers from any claims, suits or actions of every name, kind and description brought forth, or on account of, injuries to or death of any person (including but not limited to workers and the public), or damage to property, resulting from or arising out of ATTORNEY's willful misconduct or negligent act or omission while engaged in the performance of obligations or exercise of rights created by this Agreement, except those matters arising from CITY's sole 5 [B:\City Attorney\agreement\Legal Services Agreements\Susie Berlin Legal Services Agreement.docx; 4/27/2022] negligence or willful misconduct. The parties intend that this provision shall be broadly construed.
ATTORNEY’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law. The defense and indemnity obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.
12. Notice. All notices, invoices, reports or other communication required by this Agreement shall be properly given if delivered in person, or sent by first class mail, facsimile, or overnight delivery to the following addresses:
CITY: ATTORNEY:
Roseville City Attorney Law Offices of Susie Berlin
311 Vernon Street 1346 The Alameda, Suite 7-141
Roseville, CA 95678 San Jose, CA 95126
Email: [email protected] Email: [email protected] Either party may amend its address for notice by giving notice to the other party.
13. Disclaimer of Guarantee. ATTORNEY has made no promises or guarantees to CITY about the outcome of CITY’s matter, and nothing in this Agreement shall be construed as such a promise or guarantee. ATTORNEY’s comments about the outcome of CITY’s matter are expressions of opinion only.
14. Assignment. Neither party to this Agreement shall assign any of its rights or obligations under this Agreement, except with the prior written consent of the other party. No assignment of this Agreement shall relieve the assigning party of any of its obligations under this Agreement until such obligations have been assumed by the assignee. Any assignment in violation of this paragraph shall be void.
15. Attorney’s Fees; Venue; Governing Law. If either party commences any legal action against the other party arising out of this Agreement or the performance hereof, the prevailing party in such action shall be entitled to recover its reasonable litigation expenses, including but not limited to, court costs, expert witness fees, discovery expenses, and attorney’s fees. Any action arising out of this Agreement shall be brought in Placer County, California, regardless of where else venue may lie. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
16. Severability. If any of the provisions contained in this Agreement are for any reason held invalid or unenforceable, such holding shall not affect the remaining provisions or the validity and enforceability of the Agreement as a whole.
17. Integrated Agreement. This is an integrated Agreement and contains all of the terms, considerations, understandings and promises of the parties. It shall be read as whole. 6 [B:\City Attorney\agreement\Legal Services Agreements\Susie Berlin Legal Services Agreement.docx; 4/27/2022] IN WITNESS WHEREOF, the City of Roseville, a municipal corporation, has authorized the execution of this Agreement in duplicate by its City Manager and attested to by its City Clerk under the authority of Resolution No. , adopted by the Council of the City of Roseville on the day of , 2022, and ATTORNEY has caused this Agreement to be executed.
CITY OF ROSEVILLE, a LAW OFFICES OF SUSIE BERLIN, a
municipal corporation: California sole proprietorship
BY:
DOMINICK CASEY BY:
City Manager its: Owner
ATTEST:
BY:
CARMEN AVALOS
City Clerk
APPROVED AS TO FORM:
BY:
MICHELLE SHEIDENBERGER
City Attorney
COUNCIL COMMUNICATION
CC #: 2084
File #: 0800-02
Title: Municipal Code Amendments - Water Utility
Contact: Sean Bigley 916-774-5513 [email protected] Meeting Date: 5/18/2022
Item #: 6.12.
RECOMMENDATION TO COUNCIL
Staff recommends the City Council introduce for first reading the attached ordinance amending Roseville Municipal Code sections pertaining to water (14.08.020 and 14.08.06), water conservation (14.09.030, 14.09.050, 14.09.060, 14.09.070, 14.09.080, 14.09.090, 14.09.100,
14.09.110 and 14.09.120), backflow prevention inspection and cross-connection control (14.10.020, 14.10.030 14.10.040, 14.10.060, 14.10.080 and 14.10.110), and well water (14.11.040).
BACKGROUND
Roseville's utilities periodically review the municipal code to ensure alignment with State policy and other operational issues. The following is a summary of the recommended revisions.
Water Efficiency
One of the important tools that the City can use to ensure future water supply reliability is to manage demand by ensuring efficient use of water resources. Changes recommended in Chapter
14.09 help to clarify City definitions for a measurable rain event, identify approved irrigation days, define standards for drought tolerant plants, clarify what is meant by low volume irrigation and add rules for washing automobiles at various drought stages. These changes will assist the Water Efficiency Division in providing guidance to customers.
Cross-Connection and Backflow Prevention
In accordance with recent legislation, the State Water Resources Control Board is updating standards and principles for California’s Public Water Systems to ensure that the backflow of liquids, gases, or other substances will not contaminate potable water in the distribution system.
The goal is to ensure a robust statewide cross-connection control and backflow prevention program to protect public health. An amendment to Section 14.08.020 defines customer responsibility to install and maintain backflow prevention devices at the coupling on the customer side of the water meter. A change to 14.08.060 clarifies that it is unlawful to tamper with backflow assemblies. Additional changes in Chapter 14.10 update definitions, further define the City’s access for inspection and responsibility to protect the water system, define customer responsibility for the ownership, testing, and maintenance of backflow prevention assembly devices, and clarify inspection and enforcement procedures. All of these changes position the Water Utility to comply with the updated State requirements.
Groundwater Program
The Water Utility continues to manage water supplies strategically in response to changing water conditions (drought and surface water curtailments) and other regional water supply obligations. In addition, each year, the Water Utility reviews around 150 borehole and well permit applications within City boundaries to maintain and protect the integrity of our groundwater basin. The utility recommends changes to 14.09.050 to identify groundwater use as an alternate water supply and
14.11.040 to clarify the process for well permit applications.
FISCAL IMPACT
There is no fiscal impact associated with adoption of this ordinance.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. (CEQA Guidelines §15061(b)(3)).
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Sean Bigley, Environmental Utilities Assistant Director Richard D. Plecker, Environmental Utilities Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Water Utility CodeAmendments
ORDINANCE NO. ____
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE AMENDING SECTIONS
14.08.020 AND 14.08.060 OF CHAPTER 14.08 OF TITLE 14 OF THE ROSEVILLE MUNICIPAL CODE REGARDING WATER, AMENDING SECTIONS 14.09.030, 14.09.050,
14.09.060, 14.09.070, 14.09.080, 14.09.090, 14.09.100, 14.09.110 AND 14.09.120 OF CHAPTER 14.09 OF TITLE 14 OF THE ROSEVILLE MUNICIPAL CODE REGARDING WATER CONSERVATION, AMENDING SECTIONS 14.10.020, 14.10.030, 14.10.040,
14.10.060, 14.10.080, AND 14.10.110 OF CHAPTER 14.10 OF TITLE 14 OF THE
ROSEVILLE MUNICIPAL CODE REGARDING BACKFLOW PREVENTION INSPECTION AND CROSS-CONNECTION CONTROL, AND AMENDING SECTION 14.11.040 OF CHAPTER 14.11 OF TITLE 14 OF THE ROSEVILLE MUNICIPAL CODE REGARDING
WELL WATER
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. Section 14.08.020 of Chapter 14.08 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.08.020 Service connections—Application—Costs.
A. The water division shall install service connections and lay service pipes up to the coterminous of the public easement or interest in land and the property of the applicant, except in the case of improvements installed pursuant to the subdivision regulations, all of which improvements shall be the sole responsibility of the developer. Ordinarily, such service pipes 2 shall terminate within two feet in back of a sidewalk. Where there is no sidewalk, the location of the terminal of the service pipes shall be determined by the environmental utilities director or designee based upon where a sidewalk would ordinarily be located. The responsibility of the city with respect to ownership, maintenance, and repair of any such water service connections and service pipes shall not extend, in any case, beyond the terminal of the service pipes, or at the location or located of the coupling on the customer’s water meter, if one is installed.
B. The size of such service connections and pipes shall be determined by the applicant by reference to the Uniform Plumbing Code. The environmental utilities director is not responsible for verifying the calculations and is not responsible for any pressure problems related to improperly sized services.
C. Prior to the installation of such service connections and pipes, the applicant shall pay to the city the estimated costs of installation.
D. The cost of installation shall be established by the environmental utilities director or designee, based upon the estimated costs of labor, materials, equipment costs and rentals, and administrative costs. Upon the completion of an installation and approving inspection of any connection, the director or designee shall refund any amounts collected with the application which exceed the actual costs.
SECTION 2. Section 14.08.060 of Chapter 14.08 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.08.060 Tampering with city property—Bypassing meters.
It is unlawful for any person not authorized by the city to do so to tamper with any gates, valves, service cocksbackflow assemblies, fire hydrants, meters, or any of the city’s property 3 accessory or appurtenant to the potable and recycled water distribution systems, to break the seal on any water meter, or to cause water to bypass any water meter.
SECTION 3. Section 14.09.030 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.030 Definition of water waste.
Any of the following acts or omissions, whether willful or negligent, shall constitute the waste of water:
A. Causing or permitting water to leak, discharge, flow or run to waste into any gutter, sanitary sewer, watercourse or public or private storm drain, or to any adjacent property, from any tap, hose, faucet, pipe, sprinkler, pond, pool, waterway, fountain or nozzle. In the case of irrigation, “discharge,” “flow” or “run to waste” means that the earth intended to be irrigated has been saturated with water to the point that excess water flows over or through the earth to waste. In the case of washing, “discharge,” “flow” or “run to waste” means that water in excess of that necessary to wash, wet or clean the dirty or dusty object, such as an automobile, sidewalk, or parking area, flows to waste.
B. Allowing water fixtures (including, but not limited to, toilets, faucets, shower heads) or heating or cooling devices to leak or run to waste.
C. Maintaining ponds, waterways, decorative basins or swimming pools without water recirculation devices.
D. Backwashing so as to discharge to waste swimming pools, decorative basins or ponds in excess of the frequency necessary to ensure the healthful condition of the water or in 4 excess of that required by standards for professionally administered maintenance or to address structural considerations, as determined by the city manager, or designee.
E. Operation of an irrigation system that applies water to an impervious surface or that is in disrepair.
F. Use of a water hose not equipped with a control nozzle capable of completely shutting off the flow of water except when positive pressure is applied.
G. Irrigation of landscaping during rainfall or 48 hours after a measurable rain event.
A measurable rain event is the equivalent of ¼ of inch of rain in an hour.
H. Overfilling of any pond, pool or fountain which results in water discharging to waste.
SECTION 4. Section 14.09.050 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.050 Determination of drought staging – Effect of well waterGroundwater use as an alternate supply.
In determining the water conservation and drought stage in effect, the city manager, or designee, shall take into account only surface water available and able to be delivered from the Bureau of Reclamation and the Placer County Water Agency. Well water shall not be considered. In the event that this would result in a determination of a stage three drought or higher, groundwater wells may be activated to increase the supply to a stage two drought level.
However, in no case shall well water be considered as an alternative to declaration of a stage one or stage two droughtWhile the city routinely pumps relatively small volumes of groundwater during all water year types for maintenance purposes, the city may use groundwater as an 5 alternate source of water supply to aid in meeting demands associated with dry periods, peak demands, or due to surface water supply curtailments. The city may also use groundwater as an alternate source of water supply to achieve obligations associated with the Sacramento Water Forum, American River flow standards, or when participating in groundwater banking to achieve California Water Code obligations under the Sustainable Groundwater Management Act or to be consistent with other regional or statewide objectives.
SECTION 5. Section 14.09.060 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.060 Basic stage restrictions.
During the basic water conservation stage, the following restrictions shall be in force:
Water shall be used for beneficial purposes only; all unnecessary and wasteful uses (as defined in Section 14.09.030) of water are prohibited.
A. Water shall be confined to the user’s property and shall not be allowed to run off to adjoining properties, or to the roadside or to the gutter. Care shall be taken not to water past the point of saturation.
B. Free-flowing hoses for all uses are prohibited. Automatic shut-off devices shall be attached on any hose or filling apparatus in use.
C. All leaks (including irrigation systems, pipes, fixtures, pools, ponds, fountains and waterways) shall be repaired within five calendar days or less if warranted by the severity of the problem as determined in the discretion of the city manager, or designee.
D. All pools, spas, and ornamental fountains/ponds shall be equipped with a recirculation pump and shall be constructed to be leak-proof. Pool draining and refilling shall be 6 allowed only to the extent required for health, maintenance, or structural considerations, and must otherwise comply with all applicable federal, state and local stormwater management program requirements, including, but not limited to, the urban stormwater quality management and discharge control ordinance set forth in Chapter 14.20 of Title 14 of the City of Roseville Municipal Code.
E. Landscaping.
1. All landscaping installed in the City of Roseville shall comply with the water efficient landscape requirements adopted by resolution of the city council.
2. Irrigation of new landscaping shall be allowed on any day of the week for a period of 30 days after the new landscaping is planted, unless the city manager, or designee, provides prior written consent to extend this time period based on plant type and the season when the new landscaping is planted. After the 30 days, irrigation days and run times should be decreased to settings appropriate for an established landscape.
3. Upon city declaration of a water shortage, the city manager or designee may impose revised and/or additional limitations on the irrigation of new landscaping, as specified in Sections 14.09.060 through 14.09.100, and no person shall use, or cause to be used, city water in violation of such limitations while the water shortage remains in effect. A waiver may be granted to irrigate during an establishment period for actively used turf areas and/or sports fields or as approved by the city manager or designee. Allowance shall also be made for irrigation testing and repairs.
F. All site reviews shall include an evaluation of using recycled water. Recycled water shall be required if economically feasible.
7 SECTION 6. Section 14.09.070 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.070 Stage one drought restrictions.
During a stage one drought, the following restrictions may be required, as determined by the city manager and upon notification pursuant to Section 14.09.020(E):
A. All basic stage restrictions required by Sections 14.09.030 and 14.09.060 shall continue in place, except to the extent they are replaced by more restrictive conditions imposed by this section.
B. Residential users and non-residential users shall reduce water usage up to 10 percent.
C. Residential water users shall be permitted to irrigate with city water on the following schedule, unless the city manager, or designee, provides prior written consent to a different irrigation pattern:
1. 1st day of November – last day of February: up to one day per week irrigation on Monday of each week, if needed.
2. 1st day of March – last day of April and 1st day of September – last day of October: up to two days per week irrigation on Monday and Friday of each week, if needed.
3. 1st day of May – last day of August: up to three days per week irrigation on Monday, Wednesday and Friday of each week, if needed.
D. Nonresidential water users (including without limitation, commercial, industrial, church, cemeteries, and publicly owned users) shall be permitted to irrigate with city water on 8 the following schedule, unless the city manager, or designee, provides prior written consent to a different irrigation pattern:
1. 1st day of November – last day of February: up to one day per week irrigation on Monday Tuesday of each week, if needed.
2. 1st day of March – last day of April and 1st day of September – last day of October: up to two days per week irrigation on Monday Tuesday and Thursday of each week, if needed.
3. 1st day of May – last day of August: up to three days per week irrigation on MondayTuesday, Thursday and Saturday of each week, if needed.
E. The limitations specified in subsections C and D shall not apply to a properly functioning low volume landscape irrigation system, the irrigation on container plants, or to the irrigation of new landscaping that is subject to the provisions of Section 14.09.060(E). Low volume irrigation means the application of irrigation water at low pressure through a system of tubing or lateral lines and low-volume emitters such as point source drip and in-line drip lines or soaker hose drip or drip lines irrigating at less than two gallons per hour. These systems are specifically designed to apply small volumes of water slowly at or near the root zone of plants.
F. References in this section to any day of the week shall mean the period beginning at 12:00 a.m. on that day and ending 24 hours later.
G. City park sites shall, as an aggregate, reduce usage up to 10 percent.
H. Washing streets, parking lots, driveways, sidewalks or buildings, except as necessary for health or sanitary purposes or pursuant to a term or condition in a permit issued by a state or federal agency, is prohibited.
I. Water shall not be served at restaurants except by request.
J. Water shortage surcharges shall be implemented as set forth in Section 14.08.095. 9 SECTION 7. Section 14.09.080 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.080 Stage two drought restrictions.
During a stage two drought, the following restrictions may be required, as determined by the city manager and upon notification pursuant to Section 14.09.020(E):
A. All basic stage and stage one restrictions required by Sections 14.09.060 and
14.09.070 shall continue in place, except to the extent they are replaced by more restrictive conditions imposed by this section.
B. Residential users and non-residential landscapes shall reduce water usage up to 20 percent.
C. City park sites shall, as an aggregate, reduce usage up to 20 percent.
D. Residential water users shall be permitted to irrigate with city water on the following schedule, unless the city manager, or designee, provides prior written consent to a different irrigation pattern:
1. 1st day of November – last day of February: up to one day per week irrigation on Monday of each week, if needed.
2. 1st day of March – last day of April and 1st day of September – last day of October: up to two days per week irrigation on Monday and Friday of each week, if needed.
3. 1st day of May – last day of August: up to three days per week irrigation on Monday, Wednesday and Friday of each week, if needed.
10 E. Nonresidential water users (including without limitation, commercial, industrial, church, cemeteries, and publicly owned users) shall be permitted to irrigate with city water on the following schedule, unless the city manager, or designee, provides prior written consent to the Environmental Utilities-Water Efficiency Section for a different irrigation pattern:
1. 1st day of November – last day of February: up to one day per week irrigation on Monday Tuesday of each week, if needed.
2. 1st day of March – last day of April and 1st day of September – last day of October: up to two days per week irrigation on Monday Tuesday and Thursday of each week, if needed.
3. 1st day of May – last day of August: up to three days per week irrigation on MondayTuesday, Thursday and Saturday of each week, if needed.
F. The limitations specified in subsections D and E shall not apply to a properly functioning low volume landscape irrigation system, the irrigation on container plants, or to the irrigation of new landscaping that is subject to the provisions of Section 14.09.060(E). Low volume irrigation means the application of irrigation water at low pressure through a system of tubing or lateral lines and low-volume emitters such as point source drip and in-line drip lines or soaker hose drip or drip lines irrigating at less than two gallons per hour. These systems are specifically designed to apply small volumes of water slowly at or near the root zone of plants.
G. References in this section to any day of the week shall mean the period beginning at 12:00 a.m. on that day and ending 24 hours later.
H. Washing of vehicles or boats is prohibited except:
1. When using a hose that is equipped with a control nozzle capable of completely shutting off the flow of water except when positive action or pressure to maintain the flow of water is applied; or
11 2. When washed in either an automatic or manual commercial car wash that recirculates its water and uses high pressure/low volume wash systems.
3. Temporary car washes, held for fundraising purposes, are encouraged to partner with an automatic commercial car wash that recirculates its water and uses high pressure/low volume wash systems. If run independently, the participants must use a hose nozzle that completely shuts off the flow of water when not in use and must comply with all applicable federal, state and local stormwater management program requirements, including, but not limited to, the urban stormwater quality management and discharge control ordinance set forth in Chapter 14.20 of Title 14 of the City of Roseville Municipal Code.
I. Water shortage surcharges and excess water use charges shall be implemented as set forth in Section 14.08.095.
SECTION 8. Section 14.09.090 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.090 Stage three drought restrictions.
During a stage three drought, the following restrictions may be required, as determined by the city manager and upon notification pursuant to Section 14.09.020(E):
A. All basic stage, stage one, and stage two restrictions required by Sections
14.09.060, 14.09.070 and 14.09.080 shall continue in place, except to the extent they are replaced by more restrictive conditions imposed by this section.
B. Residential users and non-residential landscapes are to reduce water usage up to 30 percent.
12 C. City park sites shall, as an aggregate, reduce usage up to 30 percent.
D. Residential water users shall be permitted to irrigate with city water on the following schedule, unless the city manager, or designee, provides prior written consent to a different irrigation pattern:
1. 1st day of September – last day of April: up to one day per week irrigation on Monday of each week, if needed.
2. 1st day of May – last day of August: up to two days per week irrigation on Monday and Friday of each week, if needed.
E. Nonresidential water users (including without limitation, commercial, industrial, church, cemeteries, and publicly owned users) shall be permitted to irrigate with city water on the following schedule, unless the city manager, or designee, provides prior written consent to a different irrigation pattern:
1. 1st day of September – last day of April: up to one day per week irrigation on Monday Tuesday of each week, if needed.
2. 1st day of May – last day of August: up to two days per week irrigation on Monday Tuesday and Thursday of each week, if needed.
F. The limitations specified in subsections D and E shall not apply to a properly functioning low volume landscape irrigation system, the irrigation on container plants, or to the irrigation of new landscaping that is subject to the provisions of Section 14.09.060(E). Low volume irrigation means the application of irrigation water at low pressure through a system of tubing or lateral lines and low-volume emitters such as point source drip and in-line drip lines or soaker hose drip or drip lines irrigating at less than two gallons per hour. These systems are specifically designed to apply small volumes of water slowly at or near the root zone of plants. 13 G. References in this section to any day of the week shall mean the period beginning at 12:00 a.m. on that day and ending 24 hours later.
H. New or expanded landscaping is limited to drought-tolerant trees, shrubs, and ground-cover and be irrigated using a low volume irrigation system. No new turf shall be planted, hydroseeded, or laid, unless prior written consent is received from the city manager or designee. Low volume irrigation means the application of irrigation water at low pressure through a system of tubing or lateral lines and low-volume emitters such as point source drip and in-line drip lines or soaker hose drip or drip lines irrigating at less than two gallons per hour.
These systems are specifically designed to apply small volumes of water slowly at or near the root zone of plants.
I. Except where recycled water is used, golf courses shall reduce irrigation up to 30 percent.
J. All decorative fountains, decorative (i.e., nonswimming) pools, and decorative waterways shall be shut off drained and made dry. Such fountains, pools, and waterways shall not be refilled until the city has returned to the basic water conservation stage unless for preventative maintenance. Fountains, ponds or pools that are filled with recycled water are not subject to this provision. Decorative ponds that contain fish as a feature shall be exempt from this restriction as long as the system is maintained in good working order with measures taken to reduce the volume of makeup water required for evaporative losses.
K. Except where recycled or other non-potable water is used or as otherwise provided in this subsection, use of water for dust control is prohibited. Dust control shall be augmented by hardened, temporary travel routes with materials that are accepted by the city manager, city engineer, or designee. Potable water is allowed for construction water only where and to the extent required for public health and safety reasons. 14 L. New swimming pools and spas may be filled after construction using customer’s metered water at then existing water rates. All new pools must include a means for minimizing evaporative loss, such as a pool cover, at time of final inspection by the city. After being filled with water for the first time, all pools and spas shall be subject to the requirements of Section
14.09.060(D).
M. Water shortage surcharges and excess water use charges shall be implemented as set forth in Section 14.08.095.
N. Automobiles or equipment shall be washed only at commercial establishments that recycle their water or by equipment and means that separates debris and revives wash water for continual use.
SECTION 9. Section 14.09.100 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.100 Stage four drought restrictions.
During a stage four drought, the following restrictions may be required, as determined by the city manager and upon notification pursuant to Section 14.09.020(E):
A. All basic stage, stage one, stage two, and stage three restrictions required by Sections 14.09.060, 14.09.070, 14.09.080 and 14.09.090 shall continue in place, except to the extent they are replaced by more restrictive conditions imposed by this section.
B. Residential customers and non-residential landscapes are to reduce water usage up to 40 percent.
C. City park sites shall, as an aggregate, reduce usage up to 40 percent. 15 D. Residential water users shall be permitted to irrigate with city water on the following schedule, unless the city manager, or designee, provides prior written consent to a different irrigation pattern:
1. 1st day of September – last day of April: No irrigation allowed.
2. 1st day of May – last day of August: up to one day per week irrigation on Monday, if needed.
E. Nonresidential water users (including without limitation, commercial, industrial, church, cemeteries, and publicly owned users) shall be permitted to irrigate with city water on the following schedule, unless the city manager, or designee, provides prior written consent to a different irrigation pattern:
1. 1st day of September – last day of April: No irrigation allowed.
2. 1st day of May – last day of August: up to one day per week irrigation on MondayTuesday of each week, if needed.
F. The limitations specified in subsections D and E shall not apply to a properly functioning low volume landscape irrigation system, the irrigation on container plants, trees or to the irrigation of new landscaping that is subject to the provisions of Section 14.09.060(E). Low volume irrigation means the application of irrigation water at low pressure through a system of tubing or lateral lines and low-volume emitters such as point source drip and in-line drip lines or soaker hose drip or drip lines irrigating at less than two gallons per hour. These systems are specifically designed to apply small volumes of water slowly at or near the root zone of plants.
G. References in this section to any day of the week shall mean the period beginning at 12:00 a.m. on that day and ending 24 hours later.
H. Installation of any new landscaping is prohibited unless irrigation is provided through connection to an active recycled water system. In the case of new construction, the city’s 16 building official will issue a temporary final upon completion of the structural development of the property. When the city has returned to a stage two drought restriction, landscaping installation can be completed and a building final will become available upon inspection by the city.
I. Except where recycled water is used, golf courses shall reduce irrigation up to 40 percent.
J. Automobiles or equipment shall be washed only at commercial establishments that recycle their water or by equipment and means that separates debris and recycles wash water for continual use.
K. Existing pools shall not be emptied and refilled using city water unless required for health or safety reasons until the city has returned to a stage two drought restriction. Pools may be re-filled only to the extent necessary to replace evaporative losses.
L. No commitments shall be made to provide water service as part of any new land use entitlement (general plan, specific plan or amendments requesting new water allocations) until the city has returned to a stage two drought restriction. Currently approved specific plans with accompanying development agreements and projects or properties that have received water allocations in advance of full entitlements may be issued building permits so long as they comply with the remainder of this chapter.
M. Water shortage surcharges and excess water use charges shall be implemented as set forth in Section 14.08.095.
N. Automobiles or equipment shall be washed only at commercial establishments that recycle their water or by equipment and means that separates debris and revives wash water for continual use.
17 SECTION 10. Section 14.09.110 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.110 Stage five drought restrictions.
During a stage five drought, the following restrictions may be required, as determined by the city manager and upon notification pursuant to Section 14.09.020(E):
A. All basic stage, or stage one, stage two, stage three and stage four restrictions required by Sections 14.09.060, 14.09.070, 14.09.080, 14.09.090 and 14.09.100 shall continue in place, except to the extent they are replaced by more restrictive conditions imposed by this section.
B. Residential customers and non-residential landscapes users are to reduce water usage up to 50 percent.
C. Except where recycled water is used, water users shall reduce landscape irrigation as follows:
1. Turf shall not be irrigated.
2. Trees and shrubs may be irrigated with a properly functioning low volume landscape irrigation system or by use of a handheld hose equipped with a nozzle capable of completely shutting off the flow of water except when positive action or pressure to maintain the flow of water is applied. Low volume irrigation means the application of irrigation water at low pressure through a system of tubing or lateral lines and low-volume emitters such as point source drip and in-line drip lines or soaker hose. drip or drip lines irrigating at less than two gallons per hour. These systems are specifically designed to apply small volumes of water slowly at or near the root zone of plants.
18 D. Filling new or existing swimming pools and spas with city water is prohibited.
E. Water shortage surcharges and excess water use charges shall be implemented as set forth in Section 14.08.095.
SECTION 11. Section 14.09.120 of Chapter 14.09 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.09.120 Determination of drought tolerance.
Where this chapter permits or prohibits acts based upon whether or not a planting, tree, shrub, or groundcover is “drought tolerant” the determination shall be made based upon Sunset’s Western Garden Book (most recent edition), or UC Davis Arboretum’s “All Stars” plant database (www.arboretum.ucdavis.edu), and WUCOLS (Water Use Classification of Landscape Species) most current edition. Where this chapter permits or prohibits acts based upon whether a form of irrigation is “low volume drip irrigation” the determination shall be made by the director, or designee, whose determination shall be final.
SECTION 12. Section 14.10.020 of Chapter 14.10 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.10.020 Definitions.
The following words are defined for purposes of this chapter as follows:
A. “Backflow prevention assembly” means an assembly or means designed to prevent the undesirable reversal of flow in a potable water distribution system as a result of a 19 cross connection with a nonpotable supply or any matter that may alter the quality of the potable water.
EB. “Inspector” “Backflow prevention assembly tester” means a person who is certified by the city to perform testing of backflow prevention assemblies owned by customers of the city and who has completed training and holds a current certification from the CaliforniaNevada Section of the American Water Works Association. To maintain city certification, a backflow prevention assembly tester shall continually demonstrate competency in performing tests on backflow prevention devices to the Director’ss and or their designee’s satisfaction. a city employee assigned to inspect backflow prevention assemblies.
BC. “Backflow prevention-inspection fund” means that special interest-bearing fund established pursuant to Section 14.10.040.
D. “Cross-connection” means an unprotected actual or potential connection or structural arrangement between the city’s potable water system, including a piping system connected to the city’s potable water system and located on the premises of a water user or available to the water user, and any source or distribution system containing liquid, gas, or other substances within a customer’s premises and/or customer’s water system which is not from an approved potable water supply. Bypass arrangements, jumper connections, removable sections, swivel and changeover devices, or other devices through which backflow or back-siphonage could occur, shall be considered to be cross-connections.
CE. “Department” means the department of environmental utilities.
DF. “Director” means the director of the department.
FG. “Reinspection fee” means the fee required to be paid upon a finding by an inspector that a backflow prevention assembly is defective or not in compliance with the standards set forth in this chapter and requires retest after repair or replacement. 20 SECTION 13. Section 14.10.030 of Chapter 14.10 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.10.030 Backflow prevention assemblies required.
A. No water service connection to any commercial premises shall be installed unless the water supply is protected as required by this chapter.
B. In the case of premises having an auxiliary water supply that is not or may not be of safe bacteriological or chemical quality and that is not acceptable to the director or designee as an additional source, the property owner shall protect the public water system against backflow from the premises by installing an approved backflow prevention assembly in the service line.
C. The City may inspect the premises of existing customers to determine if, in the opinion of the director or designee, such premises may require a backflow-prevention assembly.
In the case of premises having either: (1) internal cross connections that cannot be permanently corrected and controlled, (2) intricate plumbing and piping arrangements where entry to all portions of the premises is not readily accessible for inspection purposes, or (3) a condition that in the opinion of the director or designee constitutes a hazard to health, the property owner shall protect the public water system against backflow from the premises by installing an approved backflow prevention assembly in the service line.
D. Failure of a customer or property owner to provide for the installation or the upgrading of a required backflow-prevention assembly, as specified in subsections (B) and (C) of this section, within 30 days following written notification from the city, and for the preservation of the health and safety of the public water supply, the city may temporarily shut off potable 21 water service to the premises and/or customer’s system until the customer has installed or upgraded, and tested, an approved assembly to the satisfaction of the director or designee.
E. Any backflow-prevention assembly installed or upgraded on a customer’s premises shall be and remain the property of the customer.
SECTION 14. Section 14.10.040 of Chapter 14.10 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.10.040 Establishment and administration of backflow prevention inspection fund.
The finance director is hereby directed to establish a special interest-bearing fund entitled the backflow prevention inspection fund. All fees collected pursuant to this chapter shall be deposited in the backflow prevention inspection fund and expended solely to finance the program set forth in this chapter.
This fee is allowed under the California State Health and Safety Code, Division 104, Part 12, Article 2, Chapter 5, Section 116805 (d) that allows water utilities implementing the backflow prevention program to recover their costs to administer the program SECTION 15. Section 14.10.060 of Chapter 14.10 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.10.060 Inspection.
A. After installation of a backflow prevention assembly, an inspectora backflow prevention assembly tester shall inspect and test the backflow prevention assembly. 22 B. Each backflow prevention assembly shall be inspected and tested at least once annually by an inspector. a backflow prevention assembly tester.
C. Where city personnel are required to perform the test, an inspection fee shall be charged to the customer as established by Section 14.10.040.
DC. If a backflow prevention assembly meets required standards established by this chapter, city will send the customer a notice of compliance.
ED. The customer’s system should be open for inspection at all reasonable times to authorized representatives of the City of Roseville water department to determine whether cross connections or other structural or sanitary hazards, including violations of these regulations, exist.
F The City may terminate the customer’s potable water service if the customer fails to have a backflow prevention device inspected and tested within the time period required by the city pursuant to Section 14.10.030(D).
SECTION 16. Section 14.10.080 of Chapter 14.10 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.10.080 Reinspection.
A. If the inspector backflow prevention assembly tester determines that the backflow prevention assembly does not meet the standards established by this chapter, the city will issue the customer a notice to correct. The customer shall make the necessary repairs or replacement within 30 days of issuance of the notice to correct.
B. The backflow prevention assembly shall be reinspected by an inspector a backflow prevention assembly tester within 30 days, at which time a reinspection fee shall be 23 charged to the customer as established by resolution adopted by the city council, as amended from time to time.
C. Each time a reinspection is required, an additional reinspection fee will be charged to the customer, until such time that the city sends the customer a notice of compliance.
SECTION 17. Section 14.10.110 of Chapter 14.10 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.10.110 Enforcement.
A. Failure to maintain a backflow prevention assembly as required by this chapter shall be a violation.
B. If the director or designee determines that a customer’s failure to install, or adequately maintain a backflow prevention assembly ,and or otherwise finds evidence that an installed backflow prevention assembly has been bypassed or rendered ineffective and constitutes a threat to the potable water supply, the director may order that water services to the noncomplying customer be discontinued. The director shall notify the customer at least 30 days prior to the proposed determination of service; provided, however, that if the threat to the potable water supply is so immediate that a delay in terminating water service may threaten the public health and safety, the director may terminate service without prior written notice.
C. A customer who has received a notice of termination of water services from the director may appeal the decision in writing to the community developmentenvironmental utilities director. The appeal must be received by the community developmentenvironmental utilities director prior to the proposed termination date, in which case the termination of services will not occur until after the appeal is heard.
24 SECTION 18. Section 14.11.040 of Chapter 14.11 of Title 14 of the Roseville Municipal Code is hereby amended to read as follows:
14.11.040 Well permit application – R.W.Q.C.B. concurrenceRegional Water Quality Control Board consideration.
A. Applications for well permits shall be made to the environmental utilities director/transmission administration division on forms provided by the facilities engineer the city and shall contain all information as required by the city to accomplish the purposes of this chapter. Each application shall be accompanied by a site assessment work plan/report.
B. The permitteeThe city manager, or designee, shall determine if the applicant shall be required to obtain the concurrenceconsideration and/or approval of the Regional Water Quality Control Board prior to the issuance of the well permit by the environmental utilities director or his representativedesignee.
SECTION 19. This ordinance shall be effective at the expiration of thirty (30) days from the date of adoption.
SECTION 20. The City Clerk is hereby directed to cause this ordinance to be published in full at least once within fourteen (14) days after it is adopted in a newspaper of general circulation in the City, or shall within fourteen (14) days after its adoption cause this ordinance to be posted in full in at least three (3) public places in the City and enter in the Ordinance Book a certificate stating the time and place of said publication by posting. 25 PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of _______________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
_________________________________
City Clerk
COUNCIL COMMUNICATION
CC #: 2070
File #: 0324 & 0201-01
Title: Fire Department Strike Team - Budget Adjustment
Contact: Brian Diemer 916-746-1392 [email protected] Meeting Date: 5/18/2022
Item #: 6.13.
RECOMMENDATION TO COUNCIL
Staff recommends City Council adopt an ordinance to approve a budget adjustment to recognize $837,719 in additional overtime expense, $2,930 in other reimbursable items/logistics, a $388,296 contribution to available General Fund resources for fleet usage and overhead, and an associated $1,228,945 in revenue related to the department participation in reimbursable strike teams.
BACKGROUND
As a participant in the California Fire Assistance Agreement (CFAA) and California Task Force Seven of the National Urban Search and Rescue Response System, the Roseville Fire Department sends resources, upon emergency request, to assist in the management and control of large emergency incidents that occur throughout our region every year. The CFAA can also provide resources to Roseville Fire should the department require and request them. This fiscal year to date, Fire Department crews have assisted throughout California (29 assignments) and participated on two urban search and rescue deployments to the eastern United States. The contracts provide reimbursement for staff, vehicle use and overhead.
FISCAL IMPACT
After the incremental overtime and other expenses are reimbursed, there is a positive impact on the General Fund of $388,296 from the reimbursement for fleet usage and overhead.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.
The Fire Department strike team - budget adjustment meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world.
Respectfully Submitted,
Brian Diemer, Assistant Fire Chief
Rick Bartee, Fire Chief
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Ordinance 6491
Budget Adjustment - Strike Team
ORDINANCE NO. 6491
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR2021-22
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended as listed on the attached budget adjustment for Strike Team participation.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City ofRoseville, this _ day of , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
4/27/20225:20 PM
1 REQUEST FOR BUDGET ADJUSTMENT
REQUESTER NAME & TITLE: Katrina Rostam, Management Analyst II FISCAL YEAR: 2021-22 PREPARER NAME & TITLE: Katrina Rostam, Management Analyst II COUNCIL DATE (if applicable): 5/18/22 DEPARTMENT/DIVISION: Fire Department/Fire Administration ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
1001 5010 48001 61,788
1001 5010 48020 21,491
1001 5010 48040 16,095
1001 5010 48030 738,345
1001 5461 48040 2,930
840,649
REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
1001 4799 48030 1,228,945
1,228,945
(388,296)
FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
1001 3601 00000 388,296
388,296
Justification for Budget Adjustment:
REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE
POSTED BY DATE
Revised: June 24, 2019
TOTAL
Strike Team Reimbursable Revenue
ACCOUNT STRING DESCRIPTION
REQUIRED APPROVALS:
BUDGET DEPARTMENT USE ONLY:
During FY2021-22, the Fire Department has been deployed to two urban search and rescue deployments and 29 fire assignments statewide through the California Fire Assistance Agreement and other state/federal aid contracts. This $1,228,945 budget adjustment is being requested for $837,719 in reimbursable labor costs, $2,930 in reimbursable items and an increase in General Fund Balance in the amount of $388,296. This will be funded through reimbursements received from our Federal, State and local partners.
Strike Team Reimbursable Overtime
Strike Team Reimbursable Overtime
TOTAL
TOTAL
ACCOUNT STRING DESCRIPTION
Strike Team Reimbursable Overtime
Increase General Fund Balance
Strike Team Reimbursable Overtime
Strike Team Reimbursable Expenses
NET ADJUSTMENT
ACCOUNT STRING DESCRIPTION
April 22, 2022
COUNCIL COMMUNICATION
CC #: 2083
File #: 0900-02 & 0201-01
Title: Wastewater Lift Stations #3 and #4 Decommissioning Projects - Budget Adjustment Contact: Bryan Buchanan 916-746-1812 [email protected] Meeting Date: 5/18/2022
Item #: 6.14.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt an ordinance approving the attached budget adjustment to move the budget for the Wastewater Lift Stations #3 and #4 Decommissioning projects from the Wastewater Regional Rehabilitation Fund to the Wastewater (Local) Rehabilitation Fund.
BACKGROUND
Wastewater Lift Stations #3 and #4 ceased operating when the Pleasant Grove Wastewater Treatment Plant came online in the early 2000s. In the FY2021-22 budget, Council approved the decommissioning of these lift stations in the Wastewater Regional Rehabilitation Fund. In the course of performing decommissioning work in FY2021-22, Wastewater staff determined the wastewater flows through these two lift stations would have been from local (City of Roseville), not regional (which includes the City’s partner agencies, Placer County and the South Placer Municipal Utility District), sources. This budget adjustment will thus move these projects from the Wastewater Regional Rehabilitation Fund to the Wastewater (Local) Rehabilitation Fund. The Wastewater Lift Station #3 Decommissioning project is not yet complete and, therefore, this budget adjustment moves the entire approved budget of $250,000 to the Wastewater (Local) Rehabilitation Fund. The Wastewater Lift Station #4 Decommissioning project is complete so this budget adjustment moves the budget for just the total costs of the project ($88,286) to the Wastewater (Local) Rehabilitation Fund with the excess budget moving back to the available resources in the Wastewater Regional Rehabilitation Fund.
FISCAL IMPACT
The recommended budget adjustment will move these projects from the Wastewater Regional Rehabilitation Fund to the Wastewater (Local) Rehabilitation Fund so they are paid for by the appropriate entity. This will decrease available resources in the Wastewater (Local) Rehabilitation Fund (6230) by $250,000 for the Wastewater Lift Station #3 Decommissioning project (500144) and $88,286 for the Wastewater Lift Station #4 Decommissioning project (500145) for a total decrease in available resources of $338,286. The budget adjustment will increase available resources in the Wastewater Regional Rehabilitation Fund (6231) by $250,000 for the Wastewater Lift Station #3 Decommissioning project and $375,000 for the Wastewater Lift Station #4 Decommissioning project for a total increase in available resources of $625,000.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA Guidelines §15060(c)(3) and §15378. The proposed budget adjustment meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal D - Enhance economic vitality
Respectfully Submitted,
Bryan Buchanan, Principal Engineer
Richard Plecker, Environmental Utilities Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Ordinance 6497
Budget adjustment
ORDINANCE NO. 6497
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCALYEAR 2021-22
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended as listed on the attached budget adjustment for the Wastewater Lift Stations #3 and #4 Decommissioning Projects.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City ofRoseville, this day of , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
REQUEST FOR BUDGET ADJUSTMENT
REQUESTER NAME & TITLE: Bryan Buchanan, Principal Engineer FISCAL YEAR: 2022 PREPARER NAME & TITLE: Teri Quinlan, EU Business Analyst COUNCIL DATE (if applicable): 5/18/2022 DEPARTMENT/DIVISION: EU/Wastewater ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
6231 5301 84001 500144 (200,000)
6231 5080 84001 500144 (50,000)
6230 5421 84001 500144 200,000
6230 5080 84001 500144 50,000
6231 5301 84001 500145 (325,000)
6231 5080 84001 500145 (50,000)
6230 5080 84001 500145 15,370
6230 5180 84001 500145 9,976
6230 5201 84001 500145 26
6230 5421 84001 500145 62,914
(286,714)
REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
-
(286,714)
FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
6230 (338,286)
6231 625,000
286,714
Justification for Budget Adjustment:
REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE
POSTED BY DATE
Revised: June 24, 2019
ACCOUNT STRING DESCRIPTION
WW Lift Station #3 - Delete project budget (professional services) from WW Regional Rehab Fund (6231)
Decrease available resources - delete budget (expense) for projects #500144 and #500145 in 6231 and move required
amount ($250,000for 500144 and $88,286) to 6230
Increase available resources - projects #500144 ($250,000) and #500145 ($375,000) budgets moved from 6231 to 6230
NET ADJUSTMENT
ACCOUNT STRING DESCRIPTION
WW Lift Station #3 - Move project budget (internal project labor) to WW (Local) Rehab Fund (6230)
WW Lift Station #3 - Delete project budget (internal project labor) from WW Regional Rehab Fund (6231)
TOTAL
ACCOUNT STRING DESCRIPTION
REQUIRED APPROVALS:
BUDGET DEPARTMENT USE ONLY:
Projects 500144 and 500145 decommission two wastewater lift stations that have not been operating for many years. These were initially set up as regional projects; however, as work progressed on the projects in FY2022, Wastewater staff determined the wastewater flows for these lift stations would have been from local, not regional, sources. This budget adjustment moves the budgets for the projects to the Wastewater (Local) Rehabilitation Fund (6230) from the Wastewater Regional Rehabilitation Fund (6231). Once the budget is moved, actuals will be moved in Oracle as well.
Project #500144 - Regional Wastewater Lift Station No 3 Decommissioning:
This adjustment will delete the project expense budget of $250,000 from the Wastewater Regional Rehabilitation Fund (6231) and appropriate that same amount for the project in the Wastewater (Local) Rehabilitation Fund (6230).
Project #500145 - Regional Wastewater Lift Station No. 4 Decommissioning:
This project is complete (expenses lower than expected due, in part, to not contracting out the work) but is still in the incorrect fund. This adjustment will delete the project expense budget of $375,000 from the Wastewater Regional Rehabilitation Fund (6231) and appropriate the amount needed to cover the full actual project cost ($88,286) in the Wastewater (Local) Rehabilitation Fund (6230). We will request closure of this project once the budget is corrected and the actuals are moved.
TOTAL
TOTAL
WW Lift Station #3 - Move project budget (repairs and
maintenance - system) to WW (Local) Rehab Fund (6230)
WW Lift Station #4 - Delete project budget (professional services) from WW Regional Rehab Fund (6231)
WW Lift Station #4 - Delete project budget (internal project labor) from WW Regional Rehab Fund (6231)
WW Lift Station #4 - Move required project budget (internal project labor) to WW Rehab (Local) Fund (6230)
WW Lift Station #4 - Move required project budget (internal labor-consolidated benefits) to WW (Local) Rehab Fund (6230) WW Lift Station #4 - Move required project budget (fuel) to WW (Local) Rehab Fund (6230)
WW Lift Station #4 - Move required project budget (repairs and maintenance - system) to WW (Local) Rehab Fund (6230)
4/25/202211:40 AM
1 4/25/22
COUNCIL COMMUNICATION
CC #: 2072
File #: 0200 & 0201-01
Title: Fiscal Year 2021-22 Utility Funds - Budget Adjustments Contact: Scott Pettingell 916-774-1306 [email protected] Meeting Date: 5/18/2022
Item #: 6.15.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt an ordinance to approve adjustments to the Fiscal Year (FY) 2021-22 budget for the City's utility funds.
BACKGROUND
Staff actively review and monitor the budget throughout the year to ensure compliance with the annual budget ordinance (6375). Staff have identified the following recommended adjustments to the FY2021-22 budget for the City's utility funds.
Environmental Utilities Department - Engineering and Utility Exploration Center (UEC) Technology Replacement
Prior to FY2019-20, the Environmental Utilities Department's Engineering technology replacement contributions and costs were tracked in the Water Rehabilitation Fund (6130), and the Utility Exploration Center's (UEC) technology replacement contributions and costs were tracked in the Waste Services Fund (6330). Since the transition to the City's Oracle ERP, beginning in FY2019-20, Water, Wastewater, and Waste Services utility funds directly funded costs related to the Environmental Utilities Department's Engineering and UEC technology replacement.
A budget adjustment is recommended to transfer the proportionate share of the balance in the Environmental Utilities Department's Engineering technology replacement back to the contributing funds (45% Water, 45% Wastewater, 10% Waste Services) and to transfer the proportionate share of the balance in UEC technology replacement back to the contributing funds (50% Electric, 50% split 1/3 Water, 1/3 Wastewater, and 1/3 Waste Services).
Environmental Utilities Department - Project Cancellations Staff recommends the cancellation of three Environmental Utilities projects:
Groundwater Management Plan (Water) (400012): After spending only $97,500, the Water Division determined activities funded in this project are ongoing and not suitable for a multi-year project. Future costs will be budgeted and accounted for in the Water Operations Fund (6101) operating budget.
Water Facility Tenant Improvements (Water) (500149): Staff recommends the cancellation of this project because the facility needs intended to be addressed by this project will be met by the new facility at the West Side Tank and Pump Station and the Utility Operations Center projects.
Sites Reservoir (Water) (500016): Staff recommends canceling this project because activities are ongoing and not suitable for a project. Future costs will be budgeted and accounted for in Water Operations Fund (6101) operating budget.
The total amount reverting to available resources due to the cancellation of these projects is $216,848 in the Water Operations Fund (6101) and $986,559 in the Water Construction Fund (6120), totaling $1,203,407.
Electric - Purchased Power and Customer Program Rebates Staff recommends increasing the Electric Fund expenditure budget by $4.4 million for fuel and purchased power primarily due to higher purchased power costs and stronger than expected customer usage during the warmer than normal summer last year. This budget adjustment also reduces the customer program rebates budget by $2.0 million due to fewer commercial energy efficiency projects and lower residential energy efficiency program participation. Approval of this budget adjustment will reduce the Electric Fund available resources by $2,364,204. There are adequate resources in the Electric Fund (6001) for this expenditure increase.
Utility Billing - Credit Card Fees
Staff recommends realigning the Utility Billing Services Division's budget for credit card fees to ensure the budget is included in the proper account code. In addition, the cost of credit card fees has been higher than forecasted due to the higher than anticipated number of customer transactions; therefore, staff recommends increasing the budget for credit card fees by $750,000.
There are adequate funds available in the Electric Operations (6001), Water Operations (6101), Wastewater Operations (6201), and Waste Services Operations (6301) funds for this recommended budget adjustment.
Utility Billing - Realignment of Budget
The Utility Billing Services Division is funded by a proportional share of the Electric, Water, Wastewater, and Waste Services funds. Staff recommends re-aligning the Workers Compensation, General Liability, and Facility Service budgets within the Utility Billing Services Division to ensure proper contributions from the contributing funds. This re-alignment results in a decrease in the Water Operations budget of $56,789, an increase in the Wastewater Operations budget of $35,061, and an increase in the Waste Services Operations budget of $21,728. There are adequate resources in the Wastewater and Waste Services Funds for the recommended budget increases.
FISCAL IMPACT
There are adequate resources available to fund all recommended budget adjustments. This communication includes a summary of the recommended adjustments, including changes in available resources, as shown in Attachment 1.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Financial updates meet the above criteria and are not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Respectfully Submitted,
Scott Pettingell, Budget Manager
Dennis Kauffman, Assistant City Manager/Chief Financial Officer _____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Ordinance 6493
EU Engineering and UEC Technology Replacement Transfer Budget Adjustment EU Project Cancellations Budget Adjustment
Electric Budget Adjustment
UBS Realignment Budget Adjustment
UBS Credit Card Fees - Budget Adjustment
Attachment 1 - Summary of Recommended Budget Adjustments ORDINANCE NO. 6493
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2021-22
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended as listed on the attached budget adjustment for the Fiscal Year 2021-22 Utilities Budget Adjustments.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City of Roseville, this ______________ day of _________________, 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
_______________________________
MAYOR
ATTEST:
__________________________
City Clerk
REQUEST FOR BUDGET ADJUSTMENT
REQUESTER NAME & TITLE: Janet Vargas / EU Business Administrator FISCAL YEAR: 2021-22 PREPARER NAME & TITLE: Archana Wagley / Business Analyst II COUNCIL DATE (if applicable): 5/18/2022 DEPARTMENT/DIVISION: Environmental Utilities / Business Services ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
6130 6801 10001 96,685
6330 6801 10001 50,585
147,270
REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
6230 4801 10001 79,106
6330 4801 10001 17,579
6001 4801 10001 30,351
6130 4801 10001 10,117
6230 4801 10001 10,117
147,270
-
FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
6001 30,351
6130 (86,568)
6230 89,223
6330 (33,006)
-
Justification for Budget Adjustment:
REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE
POSTED BY DATE
TOTAL
TOTAL
Decrease Waste Services Rehabilitation Fund Balance
Increase Wastewater Rehabilitation Fund Balance
Transfer in 50% of the UEC tech replacement balance from the WS Rehab Fund (6330) to the Electric Fund (6001)
TOTAL
Transfer in the EU Engineering tech replacement balance from the Water Rehab Fund (6130) to the WW Rehab Fund (6230)
Transfer in 1/3 of 50% of the UEC tech replacement balance from the WS Rehab Fund (6330) to the Water Rehab Fund (6130)
ACCOUNT STRING
ACCOUNT STRING
DESCRIPTION
Increase Electric Fund Balance
Decrease Water Rehabilitation Fund Balance
NET ADJUSTMENT
ACCOUNT STRING
DESCRIPTION
Transfer in 1/3 of 50% of the UEC tech replacement balance from the WS Rehab Fund (6330) to the WW Rehab Fund (6230)
DESCRIPTION
Transfer in the EU Engineering tech replacement balance from the Water Rehab Fund (6130) to the WS Rehab Fund (6330)
Transfer out the EU Engineering tech replacement balance from the Water Rehab Fund (6130) to contributing funds (WW Rehab Fund 6230 and WS Rehab Fund 6330)
Transfer out the UEC tech replacement balance from the WS Rehab Fund (6330) to contributing funds (Electric Fund 6001, Water Rehab Fund 6130, WW Rehab Fund 6230)
REQUIRED APPROVALS:
BUDGET DEPARTMENT USE ONLY:
Since FY2020, Water, Wastewater, and Waste Services utilities costs have been charged directly for EU Engineering and Utility Exploration Center (UEC) technology replacement.
This budget adjustment is needed to transfer the proportionate share of the balance in EU technology replacement back to the contributing funds (45% Water, 45% Wastewater, 10% Waste Services) and to transfer the proportionate share of the balance in UEC technology replacement back to the contributing funds (50% Electric, 50% split 1/3 Water, 1/3 Wastewater, and 1/3 Waste Services).
Prior to FY2020, EU Engineering technology replacement contributions and costs were tracked in the Water Rehabilitation Fund (6130) and the UEC's were tracked in the Waste Services Fund (6330).
4/22/202212:33 PM 1
4/25/22
4/25/20222:29 PM
REQUEST FOR BUDGET ADJUSTMENT
REQUESTER NAME & TITLE: Janet Vargas, EU Business Administrator FISCAL YEAR: 2022 PREPARER NAME & TITLE: Lisa Saunders, EU Business Analyst COUNCIL DATE (if applicable): 5/18/22 DEPARTMENT/DIVISION: EU Administration ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
6101 6587 84001 400012 (216,848)
6120 5301 84001 400012 (127,500)
6120 6587 84001 400012 (534,052)
6120 6587 84001 500149 (500,000)
6120 5080 84001 500016 (75,000)
6120 5301 84001 500016 (100,000)
6120 6587 84001 500016 (100,000)
(1,653,400)
REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
6120 4780 84001 400012 (250,000)
6120 4790 84001 400012 (199,993)
(449,993)
(1,203,407)
FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
6101 3601 00000 216,848
6120 3601 00000 986,559
1,203,407
Justification for Budget Adjustment:
REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE
POSTED BY DATE
Revised: June 24, 2019
Remove remaining budget for closure - project #400012
Remove remaining budget for closure - project #400012
Remove remaining budget for closure - project #500149
Remove remaining budget for closure - project #500016
Remove remaining budget for closure - project #500016
Remove remaining budget for closure - project #500016
TOTAL
TOTAL
ACCOUNT STRING DESCRIPTION
Remove remaining budget for closure - project #400012
Increase available resources in the Water Operations Fund - close project #400012
Increase available resources in the Water Construction Fund - close projects #400012, #500149, #500016
NET ADJUSTMENT
ACCOUNT STRING DESCRIPTION
TOTAL
ACCOUNT STRING
DESCRIPTION
REQUIRED APPROVALS:
BUDGET DEPARTMENT USE ONLY:
The following three Environmental Utilities projects need closure:
- 400012 Groundwater Management Plan (Water): After spending only $97,500, the Water Division determined activities are an ongoing effort instead of a project. Future costs will be budgeted and accounted for in Water Operations Fund 6101, Center 74107 Water Engineering and Hydrogeology Services. - 500149 Water Facility Tenant Improvements (Water): The Water Division is canceling this project (no expenses were charged) because the facility needs intending to be addressed by this project will be met by the new facility at the West Side Tank and Pump Station (project #400014) and the Utility Operations Center (new FY23 project #500265).
- 500016 Sites Reservoir (Water): The Water Division is canceling this project (no expenses were charged) because activities are an ongoing effort instead of a project. Future costs will be budgeted and accounted for in Water Operations Fund 6101, Center 74107 Water Engineering and Hydrogeology Services.
Existing budgets need to be eliminated to close each project. The total amount reverting to available resources is $216,848 for Fund 6101 and $986,559 for Fund 6120, totaling $1,203,407.
Remove remaining budget for closure - project #400012
Remove remaining budget for closure - project #400012
4/25/22
REQUEST FOR BUDGET ADJUSTMENT
REQUESTER NAME & TITLE: Scott Pettingell, Budget Manager FISCAL YEAR: FY2021-22 PREPARER NAME & TITLE: Scott Pettingell, Budget Manager COUNCIL DATE (if applicable): 5/18/22 DEPARTMENT/DIVISION: Finance - Electric/Utility Billing Services ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
6101 5491 74181 $ (2,601)
6101 5491 74183 $ (4,027)
6101 5491 74184 $ (4,977)
6301 5491 74281 $ 1,300
6301 5491 74283 $ 2,014
6301 5491 74284 $ 2,489
6201 5491 74381 $ 1,300
6201 5491 74383 $ 2,014
6201 5491 74384 $ 2,489
6101 5495 74181 $ (4,229)
6101 5495 74183 $ (6,599)
6101 5495 74184 $ (8,131)
6301 5495 74281 $ 2,114
6301 5495 74283 $ 3,299
6301 5495 74284 $ 4,066
6201 5495 74381 $ 2,114
6201 5495 74383 $ 3,299
6201 5495 74384 $ 4,066
6101 5491 74182 $ (3,199)
6201 5491 74382 $ 3,199
6101 5495 74182 $ (5,299)
6201 5495 74382 $ 5,299
6101 5520 74183 $ (4,593)
6101 5526 74183 $ (1,853)
6101 5520 74184 $ (4,593)
6101 5526 74184 $ (1,853)
6301 5520 74283 $ 2,296
6301 5526 74283 $ 927
6301 5520 74284 $ 2,296
6301 5526 74284 $ 927
6201 5520 74383 $ 2,296
6201 5526 74383 $ 927
6201 5520 74384 $ 2,296
6201 5526 74384 $ 927
6101 5520 74182 $ (3,445)
6101 5526 74182 $ (1,390)
6201 5520 74382 $ 3,445
6201 5526 74382 $ 1,390
-
REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
-
-
FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
6101 3601 00000 000000 56,789
6201 3601 00000 000000 (35,061)
6301 3601 00000 000000 (21,728)
-
Justification for Budget Adjustment:
REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE
POSTED BY DATE
Revised: September 14, 2020
Water Operations - General Liability Insurance (fixed)
Wastewater Operations - General Liability Insurance (fixed) Water Operations - Workers Compensation Insurance (fixed) Wastewater Operations - Workers Compensation Insurance (fixed) Water Operations - Facility Services
Water Operations - Shared Utility
Water Operations - Facility Services
Water Operations - Shared Utility
Waste Services Operations - Facility Services
Waste Services Operations - Shared Utility
Wastewater Operations - Shared Utility
Waste Services Operations - Facility Services
Waste Services Operations - Shared Utility
Wastewater Operations - Facility Services
Wastewater Operations - Shared Utility
Wastewater Operations - Facility Services
Wastewater Operations - Shared Utility
Water Operations - Facility Services
Water Operations - Shared utility
Wastewater Operations - Facility Services
Water Operations - General Liability Insurance (fixed)
Waste Services Operations - General Liability Insurance (fixed) Wastewater Operations - Workers Compensation Insurance (fixed) Wastewater Operations - Workers Compensation Insurance (fixed) Wastewater Operations - Workers Compensation Insurance (fixed) Waste Services Operations - Workers Compensation Insurance (fixed) Water Operations - Workers Compensation Insurance (fixed) Water Operations - Workers Compensation Insurance (fixed) Water Operations - Workers Compensation Insurance (fixed) Waste Services Operations - Workers Compensation Insurance (fixed) Waste Services Operations - Workers Compensation Insurance (fixed) Waste Services Operations - General Liability Insurance (fixed) Waste Services Operations - General Liability Insurance (fixed) Wastewater Operations - General Liability Insurance (fixed) Wastewater Operations - General Liability Insurance (fixed) Wastewater Operations - General Liability Insurance (fixed) Water Operations - General Liability Insurance (fixed)
TOTAL
TOTAL
ACCOUNT STRING DESCRIPTION
Water Operations - General Liability Insurance (fixed)
NET ADJUSTMENT
ACCOUNT STRING DESCRIPTION
Decrease in Waste Services Operations Fund available resources Increase in Water Operations Fund available resources
TOTAL
BUDGET DEPARTMENT USE ONLY:
The Utility Billing Services Division is funded by a proportional share from Electric, Water, Wastewater, and Waste Services. Staff recommends re-aligning the Workers Compensation, General Liability, and Facility Service budgets within the Utility Billing Services Division to ensure proper contributions from the Water Operations, Wastewater Operations, and Waste Services Operations Funds. There are adequate resources in the Wastewater Operations and Waste Services Funds for the recommended reductions in available resources.
REQUIRED APPROVALS:
Decrease in Wastewater Operations Fund available resources
ACCOUNT STRING DESCRIPTION
5/1/202211:17 AM
1 Attachment 1
Summary of Recommended Budget
Adjustments
Budget Adjustment/Fund Electric Water
Operations
Water
Construction
Water
Rehab
Waste
Services
Operations
Wastewater
Operations
Wastewater
Rehab
Waste
Services
Rehab
Total
Environmental Utilities – Engineering
and Utility Exploration Center (UEC)
Technology Replacement
‐ (30,351) ‐ ‐ 86,568 ‐ (89,223) 33,006 ‐ Environmental Utilities – Project
Cancellations ‐ (216,848) ‐ (986,559) ‐ ‐ ‐ ‐ (1,203,407) Electric ‐ Purchased Power and
Customer Rebates ‐ 2,364,204 ‐ ‐ ‐ ‐ ‐ ‐ 2,364,204 Utility Billing – Credit Card Fees 375,000 ‐ 125,000 ‐ 125,000 ‐ 125,000 ‐ 750,000 Utility Billing – Realignment of Budget ‐ (56,789) ‐ 21,728 ‐ 35,061 ‐ ‐ Total Net Change in Budget $ 2,708,853 $ (148,637) $ (986,559) $ 86,568 $ 146,728 $ 160,061 $ (89,223) $ 33,006 $ 1,910,797 Change in Available Resources $ (2,708,853) $ 148,637 $ 986,559 $ (86,568) $ (146,728) $ (160,061) $ 89,223 $ (33,006) $ (1,910,797)
COUNCIL COMMUNICATION
CC #: 2075
File #: 0900-02 & 0201-01
Title: Hillcrest Neighborhood Residential Resurfacing Project - Budget Adjustment Contact: Gursewak Singh 916-223-4787 [email protected] Meeting Date: 5/18/2022
Item #: 6.16.
RECOMMENDATION TO COUNCIL
Staff recommends City Council adopt an ordinance approving a budget adjustment in the total amount of $1,400,000 from the Highway Users Tax and $400,000 from the Road Maintenance and Rehab Account (RMRA) Fund to help fund the Hillcrest Neighborhood resurfacing project.
BACKGROUND
Resurfacing within the Hillcrest Neighborhood was originally scheduled to be included in the 2020 Residential Resurfacing Project. This work was to begin as soon as the construction of underground drainage and ADA ramp work was completed. However, following the completion of the drainage work, the Environmental Utilities Department identified the need to make underground water and wastewater utility improvements within the neighborhood. So, the area was removed from the 2020 Residential Resurfacing Project scope of work. All underground utility work has now been completed and staff is ready to move forward with the roadway resurfacing.
The Engineer's Estimate for the Hillcrest Resurfacing Project is $3 million. On July 21, 2021, Council approved the On-Call Roadway and Trail Maintenance Services Contract with Pavement Coatings Co. The scope of services offered by that contract align with the scope of resurfacing required within the Hillcrest Neighborhood, and Pavement Coatings Co. will complete this work.
The requested budget adjustment will establish the budget for staff time, construction management, and a portion of the construction contract.
Construction is anticipated to begin in late May and be completed by October of 2022.
FISCAL IMPACT
The Engineers Estimate for this project is $3 Million. The requested budget adjustment will provide for $1,400,000 in RMRA funds, and $400,000 of Highway Users Tax funds. The remaining balance of construction funding ($1.2 Million in General Funds identified for roadway resurfacing) is proposed to be allocated to this project with the FY2022-23 Annual Budget.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The Budget Adjustment meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Gursewak Singh, Assistant Engineer
Jason Shykowski, Public Works Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Ordinance 6494
Hillcrest Neighborhood Residential Resurfacing Project - Budget Adjustment Project Location Map - Budget Adjustment
ORDINANCE NO. 6494
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2021-22
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended as listed on the attached budget adjustment for the Hillcrest Neighborhood Residential Resurfacing Project.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City of Roseville, this ______________ day of _________________, 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
_______________________________
MAYOR
ATTEST:
__________________________
City Clerk
REQUEST FOR BUDGET ADJUSTMENT
REQUESTER NAME & TITLE: Stefanie Kemen Engineering Manager FISCAL YEAR: FY22 PREPARER NAME & TITLE: Stefanie Kemen Engineering Manager COUNCIL DATE (if applicable): 5/18/22 DEPARTMENT/DIVISION: Public Works / Engineering ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
2305 5080 84001 500288 100,000
2305 5301 84001 500288 300,000
2307 5411 84001 500288 1,400,000
1,800,000
REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
-
1,800,000
FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
2305 (400,000)
2307 (1,400,000)
(1,800,000)
Justification for Budget Adjustment:
REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE
POSTED BY DATE
Revised: June 24, 2019
TOTAL
ACCOUNT STRING DESCRIPTION
REQUIRED APPROVALS:
BUDGET DEPARTMENT USE ONLY:
This budget adjustment is requested to establish funding for staff time, professional construction services, and to begin construction of the Hillcrest Residential Neighborhood Resurfacing Project. The scope of this project consists of resurfacing the neighborhood bound by Douglas Blvd to the north, Darling way to the South, I-80 to the east and Dry Creek to the west. The Public Works Department completed underground storm drain work in the neighborhood in 2020 and planned to resurface this area immediately after with the 2020 Residential Resurfacing Project. However, the Environmental Utilities Department (EUD) identified the need to perform underground utility (water/wastewater) work in 2021, so the Hillcrest area was removed from the 2020 project and deferred to after EUD project completion. This new project has been established. The remaining balance of construction ($1.2M) is anticipated to be appropriated with the FY23 budget process, and the supplemental funds are anticipated to be General Funds for roadway resurfacing.
Etablish Project Budget for Professional Services
TOTAL
TOTAL
ACCOUNT STRING DESCRIPTION
Establish Project Budget for Staff Time.
Reduce Highway User Tax Fund
Reduce Road Maintenance and Rehab Fund
Establish budget to begin construction
NET ADJUSTMENT
ACCOUNT STRING DESCRIPTION
4/18/20228:49 AM
1 INTERSTATE 80
CIRBY WAY
DOUGLAS BLVD GALLERIA BLVD
ATLANTIC ST
DARLING WY RIVERSIDE AVE
HARDING BLVD
WASHINGTON BLVD SUNRISE AVE ROCKY RIDGE DR
"EXHIBIT A"
HILLCREST NEIGHBRHOOD RESIDENTAL RESURFACING PROJECT
VICINITY MAP
PROJECT
LOCATION
LEGEND
COUNCIL COMMUNICATION
CC #: 2079
File #: 0600-02
Title: Out-of-State Travel - Fire Department
Contact: Jason Rizzi 916-774-5802 [email protected] Meeting Date: 5/18/2022
Item #: 6.17.
RECOMMENDATION TO COUNCIL
Staff requests that City Council approve out-of-state travel for one Fire Division Chief to attend the National Fire Protection Association Training Conference in Boston, Massachusetts from June 6 to June 9, 2022.
BACKGROUND
The National Fire Protection Association is offering 110+ education sessions addressing a wide range of topics, including the Fire & Life Safety Ecosystem™; code compliance; emergency preparedness and response; emerging technologies; global issues; public education; building and life safety and construction; fire protection systems; industrial hazards; informed public; electrical safety; and many more.
FISCAL IMPACT
The cost for this training conference is included within the existing Fire Department Budget. There is no additional cost to the City or fiscal impact to the General Fund.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Approval of out-of-state travel meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community.
Respectfully Submitted,
Jason Rizzi, Fire Division Chief
Rick Bartee, Fire Chief
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
COUNCIL COMMUNICATION
CC #: 2086
File #: 0721-05 & 0201-01
Title:
Dry Creek Greenway East Phase 1 Project - Professional Design Services Agreement Amendment and Budget Adjustment
Contact: Cathy Gosalvez 916-746-1300 [email protected] Meeting Date: 5/18/2022
Item #: 7.1.
RECOMMENDATION TO COUNCIL
Staff recommends City Council:
1. Adopt the resolution authorizing the City Manager to execute the First Amendment to Professional Design Services Agreement with PSOMAS, Inc. for engineering and environmental permitting services for the Dry Creek Greenway East Phase 1 project; and
2. Adopt an ordinance to approve a budget adjustment in the amount of $1,106,741.
BACKGROUND
The Dry Creek Greenway East trail project is a proposed paved multi-use trail along Dry, Cirby, and Linda Creeks from Darling Way/Riverside Avenue to the City limits at S. Cirby Way/Old Auburn Road. The project is identified as a proposed Class I bikeway in the City of Roseville General Plan and Bicycle Master Plan.
At the March 20, 2019 meeting, City Council voted to approve the Dry Creek Greenway East trail project. This approval included certification of the Final Environmental Impact Report, pursuant to California Environmental Quality Act (CEQA) Guidelines.
Phase 1 of the project will result in two (2) miles of Class I trail from the existing Saugstad Park Trail at Darling Way to the existing Maidu Park Trail at Rocky Ridge Drive.
An agreement with Psomas for Engineering and Environmental Permitting Services for the Dry Creek Greenway East Phase 1 project was executed March 18, 2020 for $2,371,738. Additional work is required to complete the hydrology and hydraulic analysis, prepare a Conditional Letter of Map Revision and Letter of Map Revision (CLOMR/LOMR) as required by the Federal Emergency Management Agency (FEMA), perform additional efforts related to compensatory mitigation and permitting requirements, and conduct geotechnical and engineering design work associated with a new trail connection to Sunrise Avenue bridge. The contract amendment (Amendment #1) for this additional work is $206,741, bringing the total contract amount to $2,578,479.
The recommended budget adjustment will fund the first amendment to the agreement with Psomas, future right-of-way acquisitions needed for construction of the project, and staff time to manage the project.
Public Outreach:
Since 2008, the Dry Creek Greenway East Project has been driven by robust public participation and community input. There have been multiple community workshops/open houses, stakeholder representative group meetings, online surveys, project email, and social media updates. Staff will continue to engage with the community as the project moves forward.
FISCAL IMPACT
The budget adjustment totaling $1,106,741 will provide funds for the first amendment to the agreement with Psomas ($206,741), right-of-way acquisition ($800,000), and staff time to manage the project ($100,000). The project design is funded with Congestion Mitigation and Air Quality (CMAQ) Funds and Local Transportation Funds and will not utilize any General Fund resources.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed activity is administrative and fiscal in nature, and therefore consistent with the criteria identified in CEQA Guidelines §15061(b)(3), and not subject to CEQA.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal C - Maintain a safe and healthy community
Goal E - Deliver exceptional city services
Goal F - Invest in well-planned infrastructure and growth Respectfully Submitted,
Cathy Gosalvez, Assistant Engineer
Jason Shykowski, Public Works Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-164
First Amendment to PDSA with Psomas
Ordinance 6498
Budget Adjustment
Location Map
RESOLUTION NO. 22-164
APPROVING A FIRST AMENDMENT TO PROFESSIONAL DESIGN SERVICES
AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND PSOMAS,AND
AUTHORIZING THE CITY MANAGER TO EXECUTE IT ON BEHALF OF
THE CITY OF ROSEVILLE
WHEREAS, a First Amendment to Professional Services Agreement for the Dry Creek Greenway East Phase 1 project, by and between the City of Roseville and PSOMAS, has been reviewed by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said first amendment is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.
PASSED AND ADOPTED by the Council of the City ofRoseville this dayof , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D020\P004\00063665.DOCX:01/04/2022]
FIRST AMENDMENT TO
PROFESSIONAL DESIGN SERVICES AGREEMENT
Project: Dry Creek Greenway East Phase 1
THIS FIRST AMENDMENT TO PROFESSIONAL DESIGN SERVICES
AGREEMENT is made and entered into this ___ day of __________, 20__, by and between the City of Roseville, a municipal corporation (“CITY”), and PSOMAS, a California corporation (“CONSULTANT”); and
W I T N E S S E T H:
WHEREAS, CITY and CONSULTANT previously entered into a Professional Design Services Agreement dated March 18, 2020 (“Agreement”) regarding engineering and environmental permitting services for the Dry Creek Greenway East Phase 1 project; WHEREAS, CITY desires to amend the Agreement to include additional services as described in CONSULTANT’s letter/proposal dated September 30, 2021, which is attached hereto as Exhibit “A” and incorporated herein by reference; and WHEREAS, CONSULTANT is willing and able to provide such additional services; and NOW, THEREFORE, the parties agree as follows:
1. CONSULTANT shall provide additional services as described in Exhibit “A” of this First Amendment to Agreement.
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D020\P004\00063665.DOCX:01/04/2022]
2. Section 2 of the Agreement is amended by adding an additional paragraph to read as follows:
“CITY shall pay two hundred six thousand, seven hundred forty-one dollars ($206,741), in consideration of the additional services as set forth in Exhibit “A” to the First Amendment to Agreement. This brings the total not to exceed contract amount to two million, five hundred seventy-eight thousand, four hundred seventy-nine dollars ($2,578,479).”
3. All other provisions of the Agreement shall remain unchanged and in full force and effect.
IN WITNESS WHEREOF, the City of Roseville, a municipal corporation, has authorized the execution of this First Amendment to Agreement in duplicate by its City Manager and attested to by its City Clerk under the authority of Resolution No. _________, adopted by the Council of the City of Roseville on the ___ day of ___________, 20__, and CONSULTANT has caused this First Amendment to Agreement to be executed.
CITY OF ROSEVILLE, a PSOMAS, a California corporation,
municipal corporation
BY: _______________________________ BY: _______________________________ DOMINICK CASEY its: _______________________________
City Manager
and
(SIGNATURES CONTINUED ON NEXT PAGE)
Vice President
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D020\P004\00063665.DOCX:01/04/2022] ATTEST:
BY: _______________________________
its: _______________________________
BY: _______________________________
HELEN DREYER
Acting City Clerk
APPROVED AS TO FORM:
BY: _______________________________
MICHELLE SHEIDENBERGER
City Attorney
APPROVED AS TO SUBSTANCE:
BY: _______________________________
JASON SHYKOWSKI
Public Works Director
Secretary
[\\Rosenet\rosenetdfs\CITY ATTORNEY\CYCOM\WPDOCS\D020\P004\00063665.DOCX:01/04/2022] EXHIBIT “A”
September 30, 2021
Catherine Gozalves, PE
Assistant Engineer
Public Works - Engineering
City of Roseville
311 Vernon Street
Roseville, CA 95678
Subject: City of Roseville’s Dry Creek Greenway East Trail Project (#400022) Proposal to Provide Professional Services for Additional Environmental Permitting, and Engineering Studies and Design Work
Dear Cathy:
Psomas is requesting a contract amendment for additional work items required to complete Hydrology and Hydraulic Analysis beyond the original scope, additional efforts related to Compensatory Mitigation and Permitting Requirements, and Geotechnical and Engineering Design work associated with the new trail connection to Sunrise Bridge.
The additional work items, detailed in the attached documents, include the following:
• Additional Hydraulic Analysis, and more extensive work related to preparation of the CLOMR and LOMR
• Additional permitting work including:
Extensive coordination with Placer County to confirm the most feasible path for Compensatory Mitigation,
Regional Water Quality Control Alternative Analysis pursuant to recent changes to Procedures for Discharges of Dredged and Fill Material to Waters of the State, which were recently implemented.
Preparation of a NMFS Technical Memorandum to document impact data changes during design
Additional permitting management
• New trail Connection to Sunrise Avenue Bridge (structural design, water line relocation design, trail design and geotechnical evaluation)
Our proposed fee to complete this additional work is $206,741.
We appreciate the opportunity to provide these services to you. Please call with any questions.
Sincerely,
Brian Wright, PE
Project Manager
1075 Creekside Ridge Drive
Suite 200
Roseville, CA 95678-3504
Tel 916.788.8122
Fax 916.788.0600
www.Psomas.com
Dry Creek Greenway East Phase 1 Project
Scope of Work – Amendment #1
1 | P a g e
City of Roseville
DRY CREEK GREENWAY EAST PHASE 1 PROJECT
SCOPE OF WORK – AMENDMENT #1
September 30, 2021
Task A1: Additional Hydrology and Hydraulic Analysis and CLOMR/LOMR WRECO has provided a separate amendment request (which is attached) for the additional work related to hydrology and hydraulic evaluation and more extensive effort associated with updated design models and CLOMR processes per FEMA direction. In addition, the City requested WRECO to include preparation of a LOMR, upon completion of the project.
Task A1 - Deliverables
• Revised H&H Report
• CLOMR
• LOMR
Task A2: Additional Compensatory Mitigation Coordination, Regional Water Quality Control Alternative Analysis, and Permitting Coordination Ecorp has provided a separate amendment request (which is attached) for the additional permitting work which is summarized as follows:
• Extensive coordination with Placer County to confirm the most feasible path for Compensatory Mitigation,
• Regional Water Quality Control Alternative Analysis pursuant to recent changes to Procedures for Discharges of Dredged and Fill Material to Waters of the State, which were recently implemented.
• Preparation of a NMFS Technical Memorandum to document impact data changes during design
• Additional permitting management
Task A2 - Deliverables
• Documentation of Regional Water Quality Control Alternative Analysis • NMFS Technical Memorandum
Task A3: Sunrise Bridge Connection
Below is the detailed breakdown of additional work that is required to complete the Final Design for the new trail connection to Sunrise Avenue Bridge as part of the Dry Creek Greenway East Phase 1 Trail Project.
The additional work can be summarized as follows:
• Structural Design
• Water Line Relocation
• Trail Design
• Geotechnical Work
Dry Creek Greenway East Phase 1 Project
Scope of Work – Amendment #1
2 | P a g e
The following tasks are associated with this additional work.
Task A3.1 – Structural Design
Psomas will prepare an amendment to the Type Selection Memo (and 65% plans) for this new bridge connection to Sunrise Avenue Bridge.
Psomas will prepare the final design for this new bridge connection to be incorporated into the 95% and 100% PS&E package for the entire project.
It is assumed that scour data will be provided by WRECO and geotechnical recommendations will be provided by Crawford & Associates.
Task A3.1 - Deliverables
• Addendum to Bridge Type Selection Memorandum (including 65% Sunrise Bridge plans) • Finals Design for Bridge Connection for 95% and 100% PS&E package Task A3.2 – Waterline Design
Psomas will meet on site to obtain consensus on the design to relocate the water line on Sunrise Bridge.
Psomas will prepare 65% plans specifically for the relocation of the waterline to accommodate the new bridge connection to Sunrise Avenue bridge.
The assumption is that only a portion of the waterline will need to be relocated and the majority of the line will remain in place attached to the Sunrise Avenue bridge.
After review comments, Psomas will prepare the final design for this waterline relocation to be incorporated into the 95% and 100% PS&E package for the entire project.
Task A3.2 - Deliverables
• 65% Sunrise Bridge Water Relocation Plans
• Final Design for Water Line Relocation for 95% and 100% PS&E package Task A3.3 – Trail Design
Psomas will prepare 65% plans for the trail to accommodate the new connection to Sunrise Avenue bridge.
After review comments, Psomas will prepare the final design for the trail connection to Sunrise Avenue which will be incorporated into the 95% and 100% PS&E package for the entire project.
Task A3.3 - Deliverables
• 65% Plans to be combined with Bridge connection plans and submitted with the Addendum to the Type Selection Memorandum
• Final Design for trail design for 95% and 100% PS&E package Task A3.4 – Geotechnical Evaluation
Crawford completed a cursory initial review of the Final Geotechnical Site Investigation Years 3, 4, 5, and 6 for the Cirby-Linda-Dry Creek Flood Control Project, dated March 6, 1998, prepared by Dames & Moore Group Company. Based on that data and Crawford’s existing nearby boring data Dry Creek Greenway East Phase 1 Project
Scope of Work – Amendment #1
3 | P a g e
at the site, we consider the available data to be limited, but adequate to perform a conservative pile analysis and provide design recommendation for the proposed bridge foundations.
Crawford will provide geotechnical design recommendations (foundations, abutments, seismic design, and construction considerations) for the proposed bridge. These recommendations will be presented in a technical memorandum format.
Task A3.4 - Deliverables
• Geotechnical Recommendations – Technical Memorandum
City of Roseville
Dry Creek Greenway East Phase I Project
Professional Engineering and Environmental Permitting Services Amendment 1 Fee Proposal
SURVEY ECORP WRECO Crawford
Project
Manager
Project
Engineer
Civil
Engineering
Designer
Civil
Engineering
Designer
Senior
Structural
Engineer
Bridge
Engineer
Bridge
Engineering
Designer
Civil
Engineering
Designer
Hours
Subtotal
Subtotal
Labor Costs Total Cost Total Cost Total Cost Total Cost TOTAL A1 Hydrology/Hydraulics and CLOMR/LOMR
A1.1 Hydrology/Hydraulics and CLOMR/LOMR 8 16 0 0 0 0 0 0 24 $4,040 $0 $0 $70,681 $0 $74,721 Task 1.0 Subtotal 8 16 0 0 0 0 0 0 24 $4,040 $0 $0 $70,681 $0 $74,721 A2 Compensatory Mitigation and Permitting
A2.1 Additional Compensatory Mitigation 4 0 0 0 0 0 0 0 4 $900 $0 $17,500 $0 $0 $18,400 A2.2 Regional Water Quality Control Alternative Analysis Augmentation 4 0 0 0 0 0 0 0 4 $900 $0 $7,000 $0 $0 $7,900 A2.3 Additional Permitting Management and Meetings Augmentation 0 0 0 0 0 0 0 0 0 $0 $0 $15,000 $0 $0 $15,000 A2.3 NMFS Technical Memorandum 4 0 0 0 0 0 0 0 4 $900 $0 $7,500 $0 $0 $8,400 Task 2.0 Subtotal 12 0 0 0 0 0 0 0 12 $2,700 $0 $47,000 $0 $0 $49,700 A3 Sunrise Bridge Connection
A3.1 Structural Design 4 0 8 0 40 80 80 0 212 $35,180 $0 $0 $0 $0 $35,180 A3.2 Water Line Relocation 4 8 16 40 8 8 24 40 148 $21,380 $2,500 $0 $0 $0 $23,880 A3.3 Trail Design 2 4 16 0 0 0 0 16 38 $5,250 $0 $0 $0 $0 $5,250 A3.4 Geotechnical Evaluation 2 0 0 0 2 0 0 0 4 $910 $0 $0 $0 $17,100 $18,010 Task 3.0 Subtotal 12 12 40 40 50 88 104 56 402 $62,720 $2,500 $0 $0 $17,100 $82,320 TOTAL 32 28 40 40 50 88 104 56 438 $69,460 $2,500 $47,000 $70,681 $17,100 $206,741 Task Description
PSOMAS
Corporate Office: 1100 Corporate Drive, Suite 230 | Sacramento, CA 95831 | (916) 455-4225 Modesto: 1165 Scenic Drive, Suite B | Modesto, CA 95350 | (209) 312-7668 Pleasanton: 6200 Stoneridge Mall Road, Suite 330 | Pleasanton, CA 94588 | (925) 401-3515 Rocklin: 4220 Rocklin Road, Suite 1 | Rocklin, CA 95677 | (916) 455-4225 Ukiah: 100 North Pine Street | Ukiah, CA 95482| (707) 240-4400 July 28, 2021
Crawford File No. 20-619.1
To: Brian Wright, PE, PSOMAS
RE: ADDITIONAL GEOTECHNICAL SERVICES - REVISED
Dry Creek Greenway East Phase 1 – Sunrise Ave Bridge Connector As requested, we provide this scope and fee to complete additional services associated with the Dry Creek Greenway East Phase 1 project. We understand that a single span pedestrian bridge structure is planned to connect the proposed trail to the southwest end of the existing bridge that crosses over Linda Creek at Sunrise Ave. The proposed bridge foundations are planned to supported on cast-indrilled-hole (CIDH) piles and spread footing foundation. We have reviewed the Final Geotechnical Site Investigation Years 3, 4, 5, and 6 for the Cirby-Linda-Dry Creek Flood Control Project, dated March 6, 1998, prepared by Dames & Moore Group Company. Based on our review of the existing boring data at the site, we consider the available data to be limited, but adequate to perform a conservative pile analysis and provide design recommendation for the proposed bridge foundations.
Geotechnical design recommendations (foundations, abutments, seismic design, and construction considerations) for the proposed pedestrian bridge will be presented in a draft memo that will be provided for comment. Following the receipt of comments, we will finalize the memo and include it as an appendix in the Foundation Report for Bridges 2, 4, and 14.
And finally, we will perform a geotechnical review of the plans and specifications and provide written comments for the 90% design submittal.
Fees for the additional services outlined above are estimated as follows:
Task 1: Data Review and Consultations $ 1,500
Task 2: Engineering Analysis $ 6,100
Task 3: Memo & Report Preparation $ 7,400
Task 4: Plan Review $ 2,100
In order to provide the requested additional geotechnical services, we request an amendment to our existing contract in the about of $17,100. We will initiate these additional geotechnical engineering services after receiving an updated agreement and notice-to-proceed. Please call if you have questions or require additional information.
Crawford & Associates, Inc,
Keiko Lewis, PE Chris Trumbull, PE, GE, D.GE
Senior Engineer Senior Project Manager
1243 Alpine Road, Suite 108
Walnut Creek, CA 94596
Phone: 925.941.0017
Fax: 925.941.0018
www.wreco.com
| Civil Engineering | Environmental Compliance | Geotechnical Engineering | Water Resources | 1 September 9, 2021
Brian Wright
PSOMAS
1075 Creekside Ridge Drive, Suite 200
Roseville, CA 95678
Subject: Proposal for Additional Work – Dry Creek Greenway East Phase I Project Dear Mr. Wright,
WRECO is pleased to present you with this proposal for additional work related to the Dry Creek Greenway East Phase I Project for the City of Roseville. This proposal includes budget amendments to cover additional effort expended per City requests and the design process to date, and additional effort anticipated for preparation of updated design models and CLOMR processes per FEMA direction.
This request includes updates to the following tasks, which are detailed in the sections below. ‐ Task 3.1: Research and Data Collection
‐ Task 3.2: Field Review and Technical Memorandum
‐ Task 4.1: Hydrology and Hydraulic Analysis and Reports ‐ Task 4.2: No‐Rise Certification Task
‐ Task 12.2: Permitting for Bank Stabilization Area
‐ Task 12.7: Duplicate Effective Model
‐ Task 12.8: CLOMR Application
‐ Task 12.9: LOMR Application
The work includes additional out of scope work already performed that was not encompassed in the original scope, including additional analyses and evaluations requested by the City. The work also includes anticipated upcoming tasks including changes to the CLOMR approach per direction from FEMA and additional evaluations to reduce the project’s impacts on water surface elevations (WSEs) and velocities.
A fee spreadsheet is attached to this letter with a summary of the requested amended budgets and an additional detailed breakdown of hours per sub‐task.
TASK 3 RESEARCH AND DATA COLLECTION
WRECO expended additional, unanticipated effort under this task in processing the hydrologic data provided by the City for use in the Project modeling under Task 3.1. The additional effort is less than the allocated budget for Task 3.2, so there is a net positive budget remaining under Task 3. The additional work under Task 3.1 and status of Task 3.2 are documented below to document and justify the expenditures. In the attached estimate request, WRECO requests to close out Task 3 and apply the remaining budget to Task 4 work.
1243 Alpine Road, Suite 108
Walnut Creek, CA 94596
Phone: 925.941.0017
Fax: 925.941.0018
www.wreco.com
| Civil Engineering | Environmental Compliance | Geotechnical Engineering | Water Resources | 2 Task 3.1 Research and Data Collection
WRECO was scoped to use the flow rate information directly from the CTP model, provided by the City.
This would have taken the format of a pre‐set selection of hydrographs to input to the Project model.
We were anticipating receiving the documentation of the hydrologic methods in the CTP model, which we would have reviewed as due diligence, however we would not have needed to spend time analyzing flow alternatives or processing a hydrologic model.
However, after design started, WRECO was provided with the full hydrologic model and needed to review the model, compare various storm centering options, and select the most conservative set of inputs. In addition to evaluating and extracting the data, WRECO needed to include a more detailed documentation of the hydrologic data since it was not simply the flow rates used in the CTP model.
WRECO also extracted the hydrologic data for and developed a hydraulic model for the 10‐year event, in addition to the scoped 50‐, 100‐, and 200‐year events, to assist with the on‐site drainage design.
Task 3.2 Field Review and Technical Memorandum
Under this task, WRECO was to perform a site investigation and document observations in a memo.
WRECO did not attend the initial kickoff site visit due to COVID concerns and thus far a site visit has not been needed to improve the modeling efforts. WRECO assumes that we will no longer need to prepare a Field Observations Memorandum, and therefore the attached estimate closes out this task and applies the remaining budget to Task 4 items.
TASK 4 ENGINEERING TECHNICAL STUDIES AND REPORTS
Under Task 4, WRECO was scoped to perform the hydraulic analysis for the project and document the analysis in a Hydrology and Hydraulics Report (Task 4.1) and a No‐Rise Certification (Task 4.2). The descriptions below detail the additional analyses performed under Task 4.1 to date, additional anticipated effort to conclude Task 4.1, and documentation of the efforts expended under Task 4.2 prior to direction to pursue a CLOMR, and after direction to pursue a CLOMR for coordination of approach with the City, County, and Design Team. In the attached estimate, WRECO includes a request for additional budget to complete the anticipated Task 4.1 work, less the remaining budget applied from Task 3 and the remaining budget in Task 4.2.
Task 4.1 Hydrology and Hydraulic Analysis and Reports
WRECO completed the following items of work that were different from, or more labor intensive, than the original scoped effort.
WRECO developed several iterations of the base model as new information became available. The thalweg data was provided after the initial model runs were completed, requiring us to revise the hydraulic model throughout the modeled reach.
The scope includes an assumption that the path design would not significantly impact flow patterns. The level of effort to model the proposed condition and document the results and analysis were predicated 1243 Alpine Road, Suite 108
Walnut Creek, CA 94596
Phone: 925.941.0017
Fax: 925.941.0018
www.wreco.com
| Civil Engineering | Environmental Compliance | Geotechnical Engineering | Water Resources | 3 on this assumption. The modeled flow patterns, including directions of flow and velocities, ended up changing significantly as a result of the project. Therefore, additional effort was required to prepare more detailed figures, analysis, and interpretations of WSE change than if the project impacts were minor. Additionally, WRECO included a more detailed velocity analysis throughout the project, per City comment, than would have been necessary with only minor flow pattern changes.
WRECO performed hydraulic modeling for the 10‐year event and provided water surface elevations, in addition to the scoped 50‐year, 100‐year, and 200‐year events.
Finally, WRECO has developed additional hydraulic model runs to evaluate various alternatives to reduce WSEs within the Dry Creek reach. These model runs were directed after the Hydrology and Hydraulics Study Report second draft was completed. WRECO evaluated four alternatives and an additional combined alternative in an attempt to bring WSEs down to existing levels. These alternatives are beyond the two scoped alternatives, which were the Marlin Drive spur alternatives and the Bridge 14 approach alternatives. WRECO developed an additional memorandum to document the Bridge 2 freeboard and box culvert alternatives to assist the City in correspondence with the CVFBP.
At this point in time, a conceptual alternative was developed that brings WSEs to be comparable to existing WSEs in this reach. Additional work is anticipated to refine and optimize the Bridge 2 options.
WRECO also anticipates one more round of revisions to update the Hydrology and Hydraulics Study Report per any selected changes from the recent alternative evaluation, minor surface updates per 65% PS&E design comments from the City.
The fee request attached includes hours for each of the items described above.
Task 4.2 No‐rise Certification
Under this task, while the approach direction was still to pursue the No‐rise Certification, WRECO tried to prepare the 1D project model for use in a no‐rise certification by reducing the change in WSEs and evaluating the floodways. WRECO also included the time over several weeks to coordinate with the City and Project Design Team regarding the decision whether to pursue a CLOMR under this task. Per direction from the City received December 14, 2020, the No‐rise certification will not be pursued and this task will have no deliverables. The attached fee request includes removing the remaining budget under this task, to use toward Task 4.1.
TASK 12 OPTIONAL TASKS
Task 12.2 Permitting for Bank Stabilization Area
WRECO was not tasked with this scope and the attached fee includes closing out the task and applying the budget to Task 12.8.
Task 12.7 Duplicate Effective Model
Based on correspondence from FEMA representatives on June 20, 2021, there is no effective model available for the Project reach. Based on input from FEMA representatives on September 3, 2021, it was 1243 Alpine Road, Suite 108
Walnut Creek, CA 94596
Phone: 925.941.0017
Fax: 925.941.0018
www.wreco.com
| Civil Engineering | Environmental Compliance | Geotechnical Engineering | Water Resources | 4 confirmed that a duplicate effective model will not be required. Therefore, the attached fee includes closing out the task and applying the budget to Task 12.8.
Task 12.8 CLOMR Application
Based on direction from FEMA, received via Placer County on February 9, 2021, the modeling approach to the CLOMR application will be different and more intensive than the approach in the scope. The most significant change is that new models are required for the existing and proposed condition. The previous scope assumed various models that were provided and developed during Task 4 would be used in the application. However, direction from FEMA to use the effective model requires new models for each of the subsequent steps. Therefore, the figures and documentation from the Hydrology and Hydraulics Study Report cannot be reused for the CLOMR application.
In the scope, as described under the No‐rise Certification Task (4.2), the corrected effective and existing models in the scope were to be the models developed for the Hydrology and Hydraulics Study Report.
However, an effective model is not available from FEMA, per correspondence from FEMA representatives on June 20, 2021. Based on input from FEMA representatives on September 3, 2021, it was confirmed that a corrected effective model will not be required. Therefore, a corrected effective model is not anticipated to be required for this CLOMR effort. The effort to obtain and review several potential effective models from FEMA, the City, and County is included in the amendment request, but development of a duplicate effective and corrected effective model are not included.
In the scope, the existing and proposed condition models were to be the same as the existing and proposed condition models for the Hydrology and Hydraulics Study Report. However, based on FEMA direction, the existing and proposed condition models will not be able to match the models prepared under Task 4.1 because flow rates will be different. The tie‐ins for the project will need to be extended further because the WSE changes are more significant than anticipated.
Per information provided by Tom Plummer on February 5, 2021, we also now anticipate that FEMA will require a more substantial alternatives documentation for the project’s increases in WSE than was included in the original scoping effort. The budget request includes time to prepare an alternative model and a brief narrative to discuss those results.
Due to the significant changes in approach, the attached fee estimate includes a budget request to complete the additional work for this task beyond what the original optional task and budget covered.
The requested fee attached is in addition to using the optional budgets for Tasks 12.7 and 12.8 in the original scope.
Task 12.9 LOMR Application
WRECO will prepare the LOMR application after construction is complete. The application will be based on the documentation submitted for the CLOMR application and as‐builts provided by the City. This task includes updating hydraulic modeling for minor changes based on the as‐built conditions. WRECO will coordinate with FEMA to respond to questions and comments. Additional budget will be needed if the FEMA review is extensive.
Assumptions:
1243 Alpine Road, Suite 108
Walnut Creek, CA 94596
Phone: 925.941.0017
Fax: 925.941.0018
www.wreco.com
| Civil Engineering | Environmental Compliance | Geotechnical Engineering | Water Resources | 5 ‐ A new effective model will not be adopted by FEMA before the LOMR is complete. The flow rates will not change between the CLOMR and LOMR applications and the geometries will match other than minor construction changes.
Please find our additional work budget amendment request enclosed. The first page is a summary table indicating the current budget stats, requested transfers between tasks, and additional budget requested per task. The second page includes hour estimates for each of the items described in this letter. Please contact our Project Manager, Ms. Jennifer Abrams, at (845) 235‐5385 if you have any questions.
Best Regards,
WRECO
Han‐Bin Liang, Ph.D., P.E., QSD/P | President
Enclosure:
Budget Status, Transfers, and Additional Fee Request Table Estimate for Individual Tasks Listed in 9/9/21 Amendment Request Letter Table City of Roseville
Dry Creek Greenway East Phase I Project
Professional Engineering and Environmental Permitting Services
1.0 Project Management and Coordination
1.1 Meetings $ 4,864.00 $ 4,137.00 $ 727.00 $ - $ - $ 727.00
1.3 Prepare Progress Reports and Invoices $ 624.00 $ 468.00 $ 156.00 $ - $ - $ 156.00
1.5 Perform Quality Control Reviews $ 3,104.00 $ 858.00 $ 2,246.00 $ - $ - $ 2,246.00 Task 1.0 Subtotal 8,592.00 5,463.00 3,129.00 - - 3,129.00
3.0 Research and Data Collection
3.1 Research and Data Collection $ 3,040.00 $ 7,838.00 $ (4,798.00) $ 4,798.00 $ - $ - This zeros out the budget for the task.
3.2 Field Review and Technical Memorandum $ 9,302.00 $ - $ 9,302.00 $ (9,302.00) $ - $ - This zeros out the budget for the task.
Task 3.0 Subtotal 12,342.00 7,838.00 4,504.00 (4,504.00) - - This zeros out the budget for the task.
4.0 Engineering Technical Studies and Reports
4.1 Hydrology and Hydraulic Analysis and Reports $ 51,558.00 $ 87,061.50 $ (35,503.50) $ 16,227.50 $ 26,940.50 $ 7,664.50 Transfers remaining from Tasks 3 and 4.2, plus additional request
4.2 No-rise Certification $ 19,126.00 $ 7,402.50 $ 11,723.50 $ (11,723.50) $ - $ - This zeros out the budget for the task.
Task 4.0 Subtotal $ 70,684.00 $ 94,464.00 $ (23,780.00) $ 4,504.00 $ 26,940.50 $ 7,664.50
6.0 Environmental Permitting
6.3 RWQCB $ 1,584.00 $ - $ 1,584.00 $ - $ - $ 1,584.00
6.4 CVFPB $ 2,772.00 $ 858.00 $ 1,914.00 $ - $ - $ 1,914.00 Task 6.0 Subtotal $ 4,356.00 $ 858.00 $ 3,498.00 $ - $ - $ 3,498.00
8.0 Public Participation and Communication
8.1 Prepare for Stakeholder Meeting $ 2,040.00 $ - $ 2,040.00 $ - $ - $ 2,040.00 Task 8.0 Subtotal 2,040.00 - 2,040.00 - - 2,040.00
12.0 Optional Task
12.2 Permitting for Bank Stabilization Area (Exhibit 3-9) $ 3,896.00 $ - $ 3,896.00 $ (3,896.00) $ - $ - This zeros out the budget for the task.
12.7 Duplicate Effective Model $ 16,084.00 $ - $ 16,084.00 $ (16,084.00) $ - $ - This zeros out the budget for the task.
12.8 CLOMR Application $ 38,840.00 $ 12,966.00 $ 25,874.00 $ 19,980.00 $ 33,744.00 $ 79,598.00 Applies the budget from 12.2 and 12.7 to this task, plus additional request
12.9 LOMR Application $ - $ - $ - $ - $ 9,996.00 $ 9,996.00 New task Task 12.0 Subtotal $ 58,820.00 $ 12,966.00 $ 45,854.00 $ - $ 43,740.00 $ 89,594.00 Total $ 156,834.00 $ 121,589.00 $ 35,245.00 $ - $ 70,680.50 $ 105,925.50 Notes
Budget Status, Transfers, and Additional Fee Request
JTD Billing Balance Billing Transfer
Request
Additional
Budget Request
Resulting
Balance
Contract
Amount
24 September 2021
(P-19-392.02)
Amendment Two
Scope of Work and Cost Estimate for
Environmental Services
Regarding
Dry Creek Greenway East Trail Project (Phase I)
(City of Roseville, California)
for
Psomas
Understanding
This request for contract amendment is submitted following ongoing correspondence, meetings, and discussion between the City of Roseville (City), PSOMAS, and ECORP, to ensure a thorough review of regulatory permitting and mitigation options for the Dry Creek Greenway East Trail project (Project), including potential participation in the Placer County Conservation Program (PCCP). Although the City is not a PCCP participating jurisdiction, Placer Conservation Authority (PCA) staff indicated the Project would qualify for PCCP processing if submitted by the Placer County Transportation Planning Agency (PCTPA), a PCCP participating jurisdiction. PCTPA staff subsequently indicated willingness to submit the project for PCCP processing on the City’s behalf should further investigation determine the PCCP is the preferred approach.
Based on the City’s desire to examine alternative permitting approaches, ECORP was directed to investigate the PCCP option and began regular correspondence with PCA staff. This included several coordination meetings and led to the generation of detailed land cover maps to analyze and assess Project impacts and related fees consistent with PCCP methodologies. Ultimately, the analyses revealed that a PCCP approach would be much more costly than anticipated. It also revealed that Section 404 Permit streamlining per the PCCP’s Programmatic General Permit (PGP) would not apply to the Project because it exceeds a 500 lineal foot threshold for improvements within the PCCP defined stream system. As a result, the U.S. Army Corps of Engineers (USACE) is required to review and process the Section 404 permit application, reducing PCCP streamlining efficiencies. Finally, the investigation also revealed uncertainties related to the need to revise the Project’s existing National Marine Fisheries Service (NMFS) and United States Fish and Wildlife Service (USFWS) Biological Opinions (BOs). The existing BOs do not identify the PCCP as an approved means for Endangered Species Act (ESA) compliance and consequently they would either need to be withdrawn or revised to allow a PCCP approach. This would mean abandoning the NMFS BO which Caltrans local assistance staff characterized as a “favorable BO.” In light of the above, there was Project team agreement to proceed under a traditional permit and mitigation approach and not seek PCCP coverage.
The above investigation and analysis required considerable effort and costs that exceeded the approved budget line items for Task 10 Compensatory Mitigation and Task 11 Project Management. While ECORP has already conducted a considerable amount of work towards developing impact data and assessing available options for mitigation credits, additional efforts will be required, including working with mitigation banks, agency representatives and ongoing coordination with the City, Psomas, and the resource agencies.
Particularly since trail design refinements have resulted in additional impacts to biological resources that will require additional mapping, analysis, reporting, and potentially further consultation with Caltrans and the resource agencies. In addition, as described below ECORP is also requesting budget augmentation to cover costs related to new RWQCB requirements for an alternatives analysis as part of all Section 401 Water Quality Certification permit applications.
Task 13: Compensatory Mitigation
The project will result in permanent and temporary impacts to aquatic habitats including wetlands and riparian habitat and will result in indirect impacts to Valley elderberry longhorn beetle habitat.
Compensatory mitigation requirements for these impacts are mandated in the existing NMFS and USFWS BO, which includes purchase of off-site credits at a NMFS and USFWS approved mitigation bank. The Project will also have mitigation requirements for impacts to CDFW and USACE impacts which will require mitigation credits at a CDFW-approved and a USACE-approved bank.
Per the various compensatory mitigation requirements anticipated for the project, ECORP will work with the City and Psomas and continue to work with available mitigation bank(s) to secure the needed compensatory mitigation credits (potentially including an Agreement for Reservation of Credits). Accordingly, ECORP will work with banks that can service the Project (banks that include the project in their service area and that have suitable credits) – with a focus of trying to secure credits that can provide the Project with overlapping coverage (NMFS, USFWS, USACE, and CDFW approved) where possible.
To fully understand potential impact changes and the specific compensatory mitigation needs relevant to purchasing mitigation credits, ECORP will re-assess impact data based on the recently refined 65% design and report these findings to Psomas and the City. This information will be used to relate the actual impacts for purposes of permit application reporting and mitigation.
Assumptions:
• The City will assume all costs to secure mitigation credits • This task assumes that the final 65% design provided by Psomas will be utilized to develop the final impact data for calculating mitigation impacts and required bank credits • This task does not include revisions or amendments to the NMFS and/or USFWS BA’s/BO’s and does not include re-initiation of Section 7 consultation with NMFS. A separate task to develop a technical memorandum to be submitted to NMFS, on behalf of Caltrans, that describes impact data changes based on modifications to the project design is provided below in Task 4.
Task 14: Regional Water Quality Control Alternative Analysis Augmentation ECORP is contracted to prepare an application for Water Quality Certification (i.e., application) pursuant to Clean Water Act Section 401 and the Porter-Cologne Water Quality Control Act. It was originally assumed that the application would be subject to the Procedures for Discharges of Dredged and Fill Material to Waters of the State (Procedures), which were recently implemented. The Procedures have significantly changed the application process and added additional requirements for obtaining authorization for project activities from the RWQCB, including the need for an alternatives analysis, even if impacts were below the
0.5-acre impact threshold that typically applies under USACE permitting. As a result of these regulatory changes (which were instituted after the original scope approval), ECORP has learned that the cost of completing a 401 Certification has been much higher than what was originally scoped for the Project and is seeking budget augmentation to the original approved task in the amount of $7,000 to account for this.
Assumptions:
• The scope of work assumes one hard copy of the draft application for client review and one hard copy and one PDF copy of the final application. • The scope assumes no changes to the original project boundary or land use components provided in 65% design (AutoCAD format) provided to ECORP at the start of preparation, and one round of compiled edits to the draft application. • The Regional Water Quality Control Board fee, a copy of the CEQA documentation, and the CEQA Notice of Determination will be provided by the client prior to submittal.
• Any applicable application fees are not included in the cost for this task.
Task 15: Additional Project Management and Meetings Augmentation ECORP is contracted to attend meetings including standing PDT meetings but is often requested to attend impromptu meetings and discussions with the City, Psomas, participating regulatory agencies, and miscellaneous tasks to move the Project forward. The ECORP team will continue to provide strategic assistance to the client pertaining to regulatory permits participate in meetings, and respond to requests by the client, engineers, or client representatives that are not already included in this scope of work. ECORP support staff, including regulatory and GIS, will support the information requests as directed by the Project Manager. This task also includes attending anticipated future standing PDT, additional internal meetings, and overall project management.
Assumptions:
• The ECORP environmental lead and/or lead biologist will attend 20 additional Project Development Team (PDT) meetings. PDT meetings assumes 1 hour per meeting (20 hours) • The ECORP environmental lead and/or lead biologist will attend 10 strategic meetings with PSOMAS/City. Meeting with PSOMAS/City assumes 1 hour per meeting (10 hours) • This task is based on time and materials not to exceed $15,000.
Task 16: NMFS Technical Memorandum
On behalf of Caltrans, ECORP will provide a technical memorandum to NMFS that describes impact data changes based on modifications to the project design. ECORP will conduct a detailed GIS inventory based on the 65% design plans to generate revised impact data (i.e., SRA and non-SRA riparian impacts), associated maps and figures, and data tables to compare permanent and temporary impacts reported in the NMFS Biological Assessment [as described in the approved Biological Opinion (BO)] to the revised impact data. The technical memorandum will describe the modifications (i.e., added bank stabilization/RSP features) in sufficient detail to allow Caltrans and NMFS to assess the revised impact data and to determine if further information is needed to fully address ESA issues without having to reinitiate Section 7 Consultation with NMFS.
Assumptions:
• ECORP will submit the draft technical memorandum to Caltrans for review • ECORP will submit the draft technical memorandum to NMFS for review • This task assumes ongoing meeting and correspondences with Psomas, the City, Caltrans, and NMFS
• This task does not include revisions or amendments to the NMFS BA/BO and does not include reinitiation of Section 7 consultation with NMFS.
Task Cost Estimate
Task 13: Additional Compensatory Mitigation – Secure Mitigation $17,500 Task 14: Regional Water Quality Control Board Alternative Analysis Augmentation $7,000
Task 15: Additional Project Management and Meetings $15,000 Task 16: NMFS Technical Memorandum $7,500
TOTAL: $47,000
TOTAL COST ESTIMATE FOR TASKS 1 THROUGH 4: $47,000
The scope of work and estimated cost for services includes the following overall general assumptions:
• This scope does not include additional technical studies that may be required through the regulatory permitting process. Should additional required technical studies be identified during the permitting process, ECORP will prepare and submit to Psomas a contract change order to conduct and report the necessary surveys.
ORDINANCE NO. 6498
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR2021-22
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended as listed on the attached budget adjustment for the Dry Creek Greenway East Phase 1 project.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City ofRoseville, this dayof , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
REQUEST FOR BUDGET ADJUSTMENT
FISCAL YEAR: 2021/22
REQUESTER NAME & TITLE: Cathy Gosalvez
PREPARER NAME & TITLE: Cathy Gosalvez, Assistant Engineer COUNCIL DATE (if applicable): 3/2/2022 DEPARTMENT/DIVISION: Public Works/Engineering ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
BUDGET ($)
Fund Account Center Project Adjustment
6520 6587 84001 400022 1,006,741
6520 5080 84001 400022 100,000
1,106,741
REVENUES/TRANSFERS IN
BUDGET ($)
Fund Account Center Project Adjustment
6520 4425 84001 400022 1,106,741
1,106,741
-
FUND BALANCE
BUDGET ($)
Fund Account Center Project Adjustment
-
Justification for Budget Adjustment:
REQUESTING DEPARTMENT HEAD / DESIGNEE DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE
POSTED BY DATE
Internal Project Labor
TOTAL
TOTAL
ACCOUNT STRING DESCRIPTION
Professional Services & Land Acquisition
NET ADJUSTMENT
ACCOUNT STRING DESCRIPTION
BUDGET DEPARTMENT USE ONLY:
This recommended budget adjustment will increase the Dry Creek Greenway Community Planning and Outreach Project - 400022 budget by $1,106,741 for engineering design services, right of way acquisition and related staff time. The funding for this increase will come from the State of California, Local Transportation Fund (LTF) revenues. The revised project budget will be $3,882,517.
DESCRIPTION
TOTAL
LTF to pay for Professional Services ($206,741), Right-ofWay Acquisition ($800,000) & Internal Project Labor ($100,000)
ACCOUNT STRING
2/1/20224:09 PM
Ascent Environmental 3 Project Description
City of Roseville
Dry Creek Greenway East Trail Project Draft EIR 3-3
Dry Creek Greenway East Trail Project Location
COUNCIL COMMUNICATION
CC #: 2077
File #: 1006-01 & 0201-01
Title:
Roseville Entrepreneurship Center - 316 Vernon Street - Lease Agreement, Program Agreement and Budget Adjustment
Contact: Wayne Wiley 916-774-5283 [email protected] Meeting Date: 5/18/2022
Item #: 7.2.
RECOMMENDATION TO COUNCIL
Staff requests City Council:
1. Adopt resolutions authorizing the City Manager to execute a Lease Agreement, Memorandum of Lease and Program Agreement between the City of Roseville and the Growth Factory for the establishment of an Entrepreneurship Center; and
2. Adopt an ordinance authorizing a budget adjustment in the amount of $1,162,000 from the American Rescue Plan Act revenue replacement funds to a Multi-Year Project to cover costs associated with the establishment of an Entrepreneurship Center.
BACKGROUND
In October 2019, City Council conducted a public workshop to affirm the City’s mission, vision, and values. As part of that process, and with input from the public, Council prioritized six focus areas and identified enhancing economic vitality as a priority goal for the City of Roseville. To advance this goal, Economic Development has focused on better understanding entrepreneurship, as part of a holistic economic development strategy that impacts the community through job and wealth creation, human capital development, and innovation.
Accordingly, over the past 15 months, staff in partnership with Mark Haney and the Growth Factory has worked to develop an accelerator/incubator program aimed at helping small businesses and innovators grow within our community, consistent with City Council goals and the City’s Economic Development Strategy. With unprecedented shifts in the workplace (as a result of the pandemic), an increase of residents with entrepreneurial and business start-up backgrounds, and a regional need to support local innovation ecosystems, this initiative addresses a changing market, technology demands, and demographic trends of our region.
The proposed entrepreneurship center will include an accelerator, incubator and community enrichment component to best address the needs of our community and capitalize on our proposition values. The programs will be established within 2,416 square feet of leased Cityowned space located at 316 Vernon Street (see Attachment 1). The space and associated programming will be managed by the Growth Factory and overseen by a five-member Advisory Committee. City staff will chair the committee and oversee program-funding allocations. The Growth Factory will operate the facility consistent with the terms of the program agreement (see Attachment 2).
Growth Factory
Based in Rocklin, CA, the Growth Factory is a nonprofit startup accelerator with an accompanying early-stage venture fund that builds and invests in venture backable startups primarily focused in FinTech, MedTech, and GovTech industries. With a focus on capitalizing on the region's existing assets (known as the “Backyard Advantage”), the Growth Factory has reimagined the traditional accelerator model to address the vital needs of entrepreneurs by providing early-stage founders from Northern California with capital, capacity building programs, and a community of investors, mentors, customers and advocates. In addition to overseeing the initiatives outlined in the program document, the Growth Factory will expand its current operations and hold a minimum of 25% of its existing events at the Roseville location (see Exhibit A).
Outreach
Over the last year Economic Development staff has engaged the start-up community, non-profits, corporate businesses and accelerator operators to identify the needs of our community and assess the potential impacts of the proposed initiatives. This due diligence affirmed the following:
1) Start-ups have the potential to be high growth companies that evolve into top revenue generators, job creators and problem solvers.
2) There is an existing start-up community in the region, and many champions here to support them, but more awareness is needed regarding the availability of resources. 3) There is a strong need to increase the offerings of accelerator/incubator programs in the region. There is limited cohesion around offerings for start-up companies needing services such as mentorship, funding, education and access to investors in Placer County. 4) A successful initiative will rely on strategic partnerships, including support from local non-profits like the Roseville Area Chamber of Commerce, neighboring cities, colleges and universities, local companies and the City of Roseville.
5) A foundation for success has been laid by efforts the Growth Factory has undertaken through the development of their Accelerator and associated venture capital fund.
The information gained through outreach, combined with the Growth Factory’s current efforts, set the foundation for program implementation.
Program Implementation
The proposed program provides a roadmap for growing Roseville’s innovation ecosystem, small business community and venture backable sectors through targeted programs, strategic partnerships and community events. The program document outlines objectives for the first five years as follows:
Year 1 - Launch of Roseville’s Entrepreneurial Ecosystem Hub Year 2 - Strategic Implantation
Year 3 - Capacity Building and Partner Value Proposition Enrichment Years 4 & 5 – Program Advancement
Annual goals have been set to provide benchmarks that will help align City efforts and direct partner engagement in achieving the objectives noted above. In addition, key performance targets are outlined for Years 1-3 to help measure success and better direct efforts in subsequent years.
There are also six critical initiatives outlined within the document as noted below:
Space Activation – Use of the space is intended to increase downtown pedestrian traffic that results in additional patronage of local businesses. To further this objective, three downtown restaurant merchants (i.e. 105 Noshery, Monks Cellar, and Trax Taproom and Kitchen) agreed to pilot a program that will offer discounts to attendees of the entrepreneurship center and will track the economic impact on their businesses, allowing staff to analyze the best strategies to further support downtown Roseville in the future. In addition, priority will be given to downtown merchants when securing services associated with space activation (e.g. catering, entertainment, decorating, etc.).
Due to the uniqueness of the space offerings, the use will not operate like a traditional office and Development Services, Planning staff has noted that the use is consistent with the property zoning and meets the intent of the Downtown Code. Furthermore, activation of the space aligns with the downtown revitalization efforts and is consistent with the Downtown Specific Plan (DTSP).
Innovation Challenge - This effort will provide local innovators an opportunity to engage corporate and civic leaders in identifying organizational challenges. In addition, this initiative will include branding/attraction efforts focused on engaging innovative companies that are looking for industry specific mentors and opportunities to secure pilot programs to test and validate solutions. “Dreamers” Program - Similar to the Downtown Sacramento Partnership's “Calling all Dreamers” program, the City’s “Dreamers” program will be designed to catalyze the launch of new main street businesses. The program may include educational workshops, mentorship opportunities, temporary downtown storefront space, concept testing/validation, and promotional/celebration events.
Partner Programs - The City of Roseville and the Growth Factory will work collaboratively to onboard a range of partners (e.g. Sierra College, Placer County, Sacramento State, Sutter Health, Kaiser Permanente, PRIDE, Westfield Galleria and Five Star Bank). This collaborative effort will ensure leaders and subject matter experts, provide support in growing key sectors through mentorship opportunities, educational resources, funding and in-kind services.
Community Engagement/Enrichment - A variety of entrepreneurial events will be offered to the community via workshops, trainings, and seminars. These activities will be held in collaboration with our strategic partners to ensure experts from their respective fields provide appropriate support to program participants.
Inclusive Economic & Workforce Development - The goal of this initiative is to build awareness of and access to skills development, educational programs, and apprenticeship/internships opportunities to underrepresented citizens in the Roseville community. A focus on exposing the public to entrepreneurial opportunities and community resources will help provide inclusive career development options and employment connections.
Project Costs
Project costs over the first three years are estimated to total, but not exceed, $1,162,000. As fully noted in Exhibit B, this amount includes permit fees, tenant improvements, programming budget, grant funding and ancillary/miscellaneous fees.
Year 1 Year 2 Year 3
Space Costs
Tenant Improvements $303,000 - -
Permit Costs $5,000 - -
Space Design Costs $22,000 - -
Program Costs
Programmatic Support $225,000 $225,000 $175,000
Business Incentive Grants $50,000 $50,000 $50,000
City Program Misc. Costs $10,000 $10,000 $10,000
Total Cost (estimated) $642,000 $285,000 $235,000
In addition, the Growth Factory anticipates expending an additional $400,000 as part of this effort to cover staff salaries, marketing expenses, payroll taxes, event costs, insurance, furniture and equipment. Staff anticipates that following Year 3, funding will be primarily secured through a variety of grants, partner contributions and in kind services.
Project Benefits
As indicated by the Greater Sacramento Economic Council’s (GSECs) impact report for the Roseville Entrepreneurship Center, conservative estimates anticipate a total direct economic output exceeding $5 million by Year 5 based on the proposed initiatives. It is likely the economic impact will be much higher, however to set realistic expectations, this estimate is based on the establishment of a minimum of one technology company and one main street company scaling within the City of Roseville (see Attachment 3). Other aspects of the project will also result in numerous indirect and induced economic impacts including an enhanced reputation as a pro business community, upskilled workforce, and a positive impact on disadvantaged communities.
Additionally, notable benefits typically related to these efforts include:
· Most net new jobs come from high growth entrepreneurial companies less than five years old and with less than 20 employees.
· Information technology has been the number one driver of job growth over the last 5 years. · Small businesses account for approximately 45 percent of economic activity in the United States and creates two-thirds of all new jobs.
· Support of main street businesses catalyzes investment and revitalization of urban cores. · On average, new technology job wages exceed the median income levels of other sectors. · Small businesses in the United States generate approximately 50 percent of GDP. · Access to entrepreneurial resources and space can provide underrepresented communities an equal opportunity to start and run a business.
Program Agreement
The proposed agreement expressly outlines the program duration, early termination contingencies, management of personnel, marketing guidelines, intellectual property rights, data collection, and confidentiality guidelines. To provide further flexibility in program implementation, subcontracting options allow for alternatives to program management. It is also important to note that the program agreement is independent of the lease, allowing both parties to explore onboarding additional partners that might assist with program implementation.
Lease Agreement
The lease agreement is provided as Exhibit C and conditions of particular note are summarized below:
1. Lease Term – The five-year lease will begin following the issuance of the Certificate of Occupancy and the verification of improvements specified in Section 2.3.
2. Option to Extend – The agreement provides an option to extend the lease for two separate five- year terms at the then-current fair market rental rate.
3. Rent – An escalated rent based on a percentage of the base-year’s fair market value of $1.50 shall be collected, totaling $.50 per square foot in Year 1. Thereafter, rents shall increase by $.50 per square foot annually.
4. Lease Buy-Out – In the event the tenant terminates this lease within months 1-36, payment of 6 months’ rent is required and 3 months rent is required if terminated in months 37-60. The lease buy-out will be calculated based on a monthly rental rate of $3,624.50.
5. Tenant Improvements – The City will provide up to $330,000 towards permanent tenant improvement costs related to permitting, design work and construction. All furniture and appliances will be provided by the Growth Factory and maintained at their sole expense.
FISCAL IMPACT
Funding for the proposed initiative will come from the American Rescue Plan Act (ARPA) revenue replacement funds and will not impact the General Fund. As indicated in the economic impact report, an estimated $9 million may be generated through direct, indirect and induced impacts annually after year 5 related to this project. In addition, activation of this site will help further catalyze downtown development and increase patronage of downtown businesses, resulting in tangible and intangible benefits of increased foot traffic on Vernon Street. Additionally the associated tenant improvements will result in an approximately $330,000 capital investment in a City-owned asset. Finally, over the term of the lease, rent revenue to the City's General Fund will total $114,960.
ENVIRONMENTAL REVIEW
The proposed project includes minor alterations to an existing facility. This activity is categorically exempt from CEQA as a Class 1 Exemption (State CEQA Guidelines Section 15301). The Exemption has been prepared and no further CEQA action is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal D - Enhance economic vitality
Respectfully Submitted,
Wayne Wiley, Economic Development Manager
Melisa Anguiano, Economic Development Director
_____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-158
Attachment 1 - LeaseAgreement
Resolution 22-159
Attachment 2 - Program Agreement
Attachment 2 (Exhibit A) - Program Document
Ordinance 6495
Attachment 5 - Budget Adjustment
Attachment 2 (Exhibit B) - Annual Budget (Years 1-3)
Attachment 3 - Economic Impact Report
RESOLUTION NO. 22-158
APPROVING A LEASE AGREEMENT AND A MEMORANDUM OF LEASE, BY AND
BETWEEN THE CITY OF ROSEVILLE AND GROWTH FACTORY, ANDAUTHORIZING
THE CITY MANAGER TO EXECUTE THEM ON BEHALF OF THE CITY OFROSEVILLE WHEREAS, a Lease Agreement and a Memorandum of Lease regarding office space in the 316 Vernon Street Office Building, by and between the City of Roseville and Growth Factory, has been reviewed by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said Agreements are hereby approved and that the City Manager is authorized to execute them on behalf of the City of Roseville;
BE IT FURTHER RESOLVED, that the City Clerk is hereby directed to record the Memorandum of Lease, resolution, and all other documents necessary to effectuate the lease, at the Recorder’s Office of Placer County.
PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
RESOLUTION NO. 22-159
APPROVING A PROGRAM AGREEMENT, BY AND BETWEEN THE CITY OF
ROSEVILLE AND GROWTH FACTORY, AND AUTHORIZING THE CITY MANAGER TO
EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE
WHEREAS, a Program Agreement regarding a Roseville Entrepreneurship Center, by and between the City of Roseville and Growth Factory, has been reviewed by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said Program Agreement is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.
PASSED AND ADOPTED by the Council of the City of Roseville this day of , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
1 Envision Roseville:
Entrepreneurship Strategy
A Roadmap for Growing Roseville’s
Entrepreneur Ecosystem
“Any locality in the United States can build a vibrant startup community if it strategically brings together the key partners who support growth.”
- Steve Case, Startup America Partnership
Entrepreneurship is a key driver of job creation, economic diversification and improving local quality of life.
It is a tool for poverty reduction, reducing economic disparity and creating a positive sense of community.”
- Federal Reserve Bank of Kansas
Table of Contents
Overview���������������������������������������������������������������������������������������1 Partners������������������������������������������������������������������������������������������2 Strategic approach����������������������������������������������������������������4 Plan goals ������������������������������������������������������������������������������������5 Initiative details�����������������������������������������������������������������������8 Space activation������������������������������������������������������������������9 Innovation challenges����������������������������������������������������9 Dreamers Roseville program�����������������������������������11 Partner engagement�����������������������������������������������������13 Community engagement (samples)������������������13
Inclusive economic & workforce
development (examples)�������������������������������������������15 Initiative summary�������������������������������������������������������������16 Conclusion �������������������������������������������������������������������������������17 Terms of Reference ������������������������������������������������������������19 Letter from Regional & Community Partners - January 15, 2022 Roseville Economic Development Department
311 Vernon Street, Roseville CA, 95678
Dear Roseville City Council,
On behalf of various members from our local business community, regional entrepreneur ecosystem, and higher education institutions, we are pleased to present our support for Roseville’s Entrepreneurship Action Plan. The identified parties are interested in the creation of a roadmap that will guide the city, in collaboration with key stakeholders, in promoting a venture-development infrastructure and innovation ecosystem in the City of Roseville.
We believe this strategy will be a dynamic living document used by city staff, the Growth Factory and community partners to guide the allocation of time and resources to further build on our community’s strengths. We understand the collective goal of enhancing innovation, supporting entrepreneurs, facilitating workforce development and nurturing local talent in an effort to retain them within our community. Through this effort we recommend that city performance metrics be set and progress reports provided on a yearly basis, including: actions taken during the previous year, a plan for the coming year, and recommendations to recalibrate and adjust strategy to meet the changing needs of the tech, entrepreneurial and small business ecosystems in Roseville.
The city has shown great leadership and foresight in investing in the development of objectives and strategies to grow the entrepreneurship, tech and small business sectors in Roseville. As part of this effort, it is critical that the city also engage in collaboration and partnership with local stakeholders who share the same entrepreneurial spirit. There is tremendous opportunity for the city, engaged with residents and businesses, to make Roseville the next hub for entrepreneurs and innovators in Northern California.
Sincerely,
William H. Duncan IV, Superintendent/President, Sierra College Rana Ghadban, Roseville Area Chamber CEO
Jon Gregory, SVP, Venture Banking Manager, Five Star Bank Cameron Law, Executive Director for the Carlsen Center
Todd Leopold, Placer County Executive Officer
1 2
Overview
Roseville, like many cities, is planning how best to diversify its economic development strategy and workforce development efforts in order to compete in a regional and global economy. Historically, programs supporting inclusive economic development and entrepreneurial education and skills building, have been seen more as philanthropic endeavors rather than economic drivers. As the global landscape rapidly shifts, innovation and entrepreneurship are increasingly recognized as critical and necessary elements of an economic development strategy that can attract capital and talent, and fuel job and tax revenue growth.
Roseville’s roadmap
The corresponding plan provides a roadmap for growing Roseville’s entrepreneurial ecosystem, small business community and venture backable sectors with targeted programs, community partnerships and events. The plan also notes a series of initiatives that address the role of the City and the Growth Factory, in collaboration with key partners, in supporting innovation, start-ups and entrepreneurs.
Partners
Participation from a variety of community
partners will be integral to the success
of this effort. Outlined below is a list of
current and future (potential) partners
that will be further engaged in an effort to
achieve the stated goals identified herein.
• City of Roseville - Economic
Development Department (Lead) –
The City’s Economic Development
Department will leverage the City’s
organizational strengths and will collaborate
with other City Departments, citizens, and constituents to help build a growing, inclusive, and sustainable economy for Roseville and the region. • Growth Factory (Lead) – The Growth Factory is a nonprofit startup accelerator offering structured, cohort-based programs to provide early staged entrepreneurs with the strategic support, mentorship, and connections necessary to succeed. Additionally, the accelerator is • City of Roseville • Growth Factory • Co
m
m
u
nity
& Reg oi na Pl r a ent D • sr
wo
t n
wo
n Merchants/Resta
urants
3 4
Conceive
Modify Plan
Act
Measure
Regional
Innovation
Plan
Learn Act
Conceive
Modify
partnered with Growth Factory Ventures, a venture capital fund that invests capital into innovative startups with high growth potential from the Greater Sacramento region. Through this partnership, startups accepted into the accelerator program will receive financial capital to support their growth and success.
• Community & regional partners – The City of Roseville and the Growth Factory will work collaboratively to onboard partners that may include Sierra College, Carlsen Center, Placer County, Sacramento State, Sutter Health, Kaiser Permanente, PRIDE, Westfield Galleria and Five Star Bank.
This collaborative effort will ensure leaders and subject matters experts, from their respective fields, assist in helping grow each sector through mentorship opportunities, funding resources and in-kind services. • Downtown merchants/restaurants – Existing downtown businesses will be engaged in partnership with various entrepreneurial efforts. The program intends to help activate downtown by generating additional foot-traffic. Additionally, the City and the Growth Factory will work with existing merchants in an effort to offer discounts to participants of the various programs and will track the economic impact related to increased patronage of downtown businesses (partnerships may include Goose Port Public House, The Place, Monks, Nela’s Mexican Restaurant, 105 Noshery, etc.).
Strategic approach
This plan is designed to be implemented via an iterative innovation approach as represented in the graphic below. Iterative innovations are small, incremental advancements that keep notching efforts forward based on detailed examination of what is already in place and by testing ways to improve.
This plan is designed to change in response to new information garnered through piloting programs, events, and partnerships in collaboration with the Growth Factory. The plans laid out in this document are a starting point that serve as a living document and that will evolve to better deliver effective and right-fit efforts that build a robust entrepreneurial community that contributes to Roseville’s long-term economic vitality.
5 Plan goals
The below stated goals are intended to provide direction in advancing the City’s entrepreneurial ecosystem and align with the City’s economic strategy.
Furthermore, the annual goals are intended to provide benchmarks that will help align efforts of participating partners engaged in the implementation of this plan.
Key Performance Indicators (KPIs) are outlined for Years 1-3 in order to help measure the success in achieving the stated goals and better direct efforts in subsequent years.
Year 1 (Launch of Roseville’s entrepreneurial ecosystem hub) • Activate downtown space by running programs at the Vernon Street location and increasing foot traffic within the downtown core. • Engage new entrepreneurs and support the existing
entrepreneurial ecosystem.
• Build collaboration effectively across public, private and non-profit sectors to increase vitality and sustainability of the community. • Collect data and insights to gain a more accurate and complete understanding of the region’s entrepreneurial potential to better recommend a strategy that includes best-fit programs for Years 2-5. • Enhance existing marketing strategy to help promote initiatives.
Key performance targets
• Increase downtown merchant sales of partnering businesses by .5% through enhanced pedestrian traffic generated by events held at the entrepreneurial space and ancillary activity/patronage of downtown businesses.
• Engage 250 participants through a variety of events, meetings, and programs held at (or in association with) the downtown entrepreneurship center location.
• Onboard two community partners that help achieve the vision and goals noted within this strategy.
• Begin to track demographic data within 6 months of opening the center and provide a report on findings to key stakeholder by year end.
Year 2 (Strategic implementation)
• Apply information gained in Year 1 to design an effective strategy that includes the delivery of accessible, equitable and inclusive entrepreneurial programs aligned with City’s objectives and needs.
• Increase support for and engagement by minority and female entrepreneurs.
• Actively recruit and onboard strategic partners to achieve stated goals and objectives.
• Increase traffic at Vernon Street location via new partnerships and program growth.
• Identify additional funding sources to apply for in Year 3 to help further sustain the strategic efforts.
Key performance targets
• Increase participating downtown merchant sales by .75% through ancillary activities driven by increased pedestrian traffic associated with events at the entrepreneurial space.
• Engage three women/minority owned businesses through the program offerings to strongly encourage participation in one or more programs. • Identify funding opportunities totaling a minimum of $200,000 to support continued activities associated with the entrepreneurial space. • Implement a marketing strategy that results in a minimum of 1000 impressions (views, impressions and engagements).
6 7
Year 3 (capacity building and partner value proposition enrichment) • Jointly apply for grants and other funding opportunities to help sustain and grow programs.
• Focus on scaling businesses identified through the Dreamers Program. • Iterate programmatic focus based on feedback and knowledge gained. • Build on marketing strategy: Promote case studies and outcomes from Years 1-2 efforts in order to increase awareness and engagement by entrepreneurs and civic and corporate partners.
• Develop updated KPIs and goals based on Years 1-2 activities to set targets for new business starts, capital infused, job growth, revenue growth for Years 3-5.
Key performance targets
• Increase downtown merchant sales by 1% through ancillary activities driven by increased pedestrian traffic associated with events at the entrepreneurial space.
• Launch two separate Dreamers Program with a minimum participation level of five businesses per cohort.
• Increase prior year’s marketing goals by 15% in all defined categories. • Complete recruitment and onboarding of five additional strategic partners identified since program launch.
• Apply for funding opportunities totaling a minimum of $200,000 to support continued activities associated with the entrepreneurial space.
Years 4-5 (Program advancement)
• Continue to apply knowledge, information, and feedback gained from previous operations to better solicit partnerships, identify future funding sources and allocate resources.
• Identify additional strategic partners to help grow program participation and educational offerings.
• Consider implementation of a broader strategy of regional significance that may be incorporated in Years 5-10.
• Identify updated strategies that will help define the next five years of the program.
• Assess need for new programs, modified strategies, and updated metrics to measure success and begin drafting updated Strategy.
Initiative details
The proposed initiatives are intended to provide an action plan that will help achieve the stated goals above. Specifically, the initiatives are focused on establishing an entrepreneurial ecosystem, supporting small business, enhancing workforce development efforts and encouraging innovation.
The framework is broken down over a three-year period and includes six initiatives:
Innovation
Challenge
Space
Activation
Dreamers
Roseville Program
Partner
Engagement
Community
Engagement
Inclusive Economic &
Workforce Development
Funding is identified for the first three years of the program. Updated initiatives and funding for Years 4-5 of the agreement will be determined/identified, in part, based on information gained through Years 1-3.
8 9 10
SPACE
ACTIVATION
Space activation of downtown entrepreneurship center.
Ongoing operations: • Operating 25% of Growth Factory programs in the space • Oversight and implementation of City sponsored programs: Dreamers Program, community events, and inclusive workforce programs • Coordinating use of space for partner programs and events • Coordinating with city on maintenance of space • Promoting the space and activities in partnership with the City of Roseville
INNOVATION
CHALLENGES
Branding and attraction effort focused on engaging innovative companies that are looking for industry specific mentors and opportunities to secure pilots to test/validate their solutions.
Potential 12-week program includes:
Application with challenge areas defined • Corporate and civic leaders engage to identify challenges they are looking to solve and participate in vetting applications for program alongside GF team
Capacity building • Workshop series based on leanstack to prep for pitch and pilot opportunities
Pitch competition • Large scale hybrid event that includes startups pitching, panel of corporates and investors as judges, open to business leaders in the community
• Results in admission to GF accelerator, pilot projects, and incubation Incubation at Roseville location: • Up to one year of incubation space for top tier companies that go through innovation challenge.
11 12
DREAMERS ROSEVILLE
PROGRAM
Main Street and student business activation and support program designed to catalyze launch of new Roseville based businesses and to attract new traffic to downtown Roseville via demonstration pop-ups. Program to include:
Educational workshops:
• Drafting a one-page business plan and traction model
• Navigating local business requirements: licensing, taxes, and more • Main Street Marketing – Driving traffic through your doors Mentorship opportunities
• Local successful business owners
• Chamber members
• SBDC Counselors
• Growth Factory community
Concept testing & validation
• Pop ups at the Vernon Street location
• Opportunity to pop up at additional city venues
(e.g. Westfield at Galleria, etc.)
Promotion & celebration event
• Community activation event that includes competition / showcase judged by business leaders and “fan voting” from residents that results in Roseville providing investment in winning company (space, incentives…) 13 14
PARTNER
ENGAGEMENT
Increasing the competitiveness, effectiveness and long-term sustainability of local corporate and civic partners by providing early access to innovation for their enterprise via pilot projects with and mentorship of curated and vetted Growth Factory tech startups.
COMMUNITY
ENGAGEMENT (EXAMPLES)
Potential partners and example programs*
Partner: Carlsen Center for Innovation & Entrepreneurship at Sacramento State University
Program: Lean Startup Bootcamp
2-day workshop that offers the basics of what makes up a business plan and how the startup community has moved from a thick 100+ page static document with projections - to a thin, agile executive summary plan.
Partner: SBDC via Placer Business Resource Center
Program: Counseling
One mentor meetings to support local business launch, growth.
Partner: Sacramento Entrepreneurship Academy
Program: 16-week entrepreneurial education program with classes 1x / week Miscellaneous
Social events (examples):
• StartupSac Happy Hour
• 1MC
• Meetups (tech / innovation)
Next Generation Entrepreneurs:
• Weekend startup bootcamps for student entrepreneurs that could feed into UC Davis “Little Bang” competition
• Student hackathon events
Nonprofit / Social Impact Innovation
• Social innovation workshops for local non-profits and social impact ventures
* Subject to change
15 16
INCLUSIVE ECONOMIC & WORKFORCE
DEVELOPMENT (EXAMPLES)
Workforce development & capacity building
• Via community events, build awareness of and access to skills development, educational programs, and apprenticeship / internships opportunities to underrepresented citizens in the Roseville community Plan Development and Implementation
Research, develop and help raise funds for a plan that:
• Builds on current community assets and captures current opportunities • Improves understanding of regional entrepreneurial economy, barriers to access and the potential to engage previously underserved populations • Generates data to informs the next generation of programs and investments
Initiative summary
INITIATIVES YEAR 1 YEAR 2 YEAR 3
Space activation during
business hours
80% Growth Factory
team + dedicated
resource to manage
space, community &
partnerships
100% Growth Factory
team + dedicated
resource to manage
space, community &
partnerships
100% Growth
Factory team + Full
time dedicated
resource to manage
space, community &
partnerships
Innovation Challenge 1 per year 1 per year 1 per year
Dreamers Program 2 per year 2 per year 2 per year
Partner Outreach &
Engagement
2-4 partners actively
using space
4-6 partners actively
using space
6-8 partners actively
using space
Community Engagement
/ Acclimation
monthly community
engagement events
monthly community
engagement events
monthly community
engagement events
Inclusive Economic &
Workforce development /
Capacity Building
year 1 research / plan
Execution of
programs as defined
in year 1 research /
plan
Refine, improve, grow
programs
Total Cost (estimated) $275,000 $275,200 $225,400
Programmatic support $225,000 $225,000 $175,000
Business Incentive
Grants* $50,000 $50,000 $50,000
*A detailed program will be established for business incentive grants following a needs assessment from data collected within Year 1.
17 18
Conclusion
As noted throughout, this document provides an iterative framework that aims at advancing an inclusive economy through equity, prosperity, and sustainability. The initiatives outlined within are intended to encourage the implementation of strategies, and further explore opportunities, that bolster the region’s entrepreneur ecosystem.
It will be incumbent that leadership from among the ranks of Roseville’s community, executives, thought leaders, and business people organize, connect and cheerlead the growth of a robust, deeply networked community that is invested in innovation and entrepreneurship.
19 20
Terms of Reference
The following terms highlight areas of particular note that are critical to the efforts outlined within the strategy:
• Entrepreneurship – Entrepreneurship is the act of creating a business while building and scaling profitability. Most net new jobs have come from high growth entrepreneurial companies less than five years old and with less than 20 employees. Information technology has been the number one driver of job growth; however, a robust entrepreneurial ecosystem supports a variety of business sectors and job growth in various industries. • Accelerator – Startups that want to join an accelerator take part in a competitive application process to participate in programs aimed at supporting early-stage, growth-driven companies through education, mentorship and financing opportunities. Startups typically enter accelerators for a fixed period of time and as part of a cohort of companies.
The Growth Factory accepts 2 cohorts per year.
• Business Incubator – A business incubator provides technical services and support needed in order to turn viable ideas into successful businesses.
Incubators typically provide programs to help young startups innovate and grow. They usually provide entrepreneurial companies an array of business support resources and services that may include workspace, mentorship, capital, coaching, common services, and networking connections. These resources allow companies and ideas to take shape while operating at a lower cost during the early stages of business incubation. Incubators require an application process to join and usually require a commitment for a specific amount of time.
• Workforce – Education and workforce development efforts need to include innovation and digital upskilling as key components in order to build a competitive workforce. Business accelerators and incubators often play a key role in developing talent by providing access to valuable resources, skills focused certificate programs and connecting jobseekers with opportunities for hands-on experience in high growth tech startups.
In particular, A Society of Human Resource Management report stated that 59% of hiring managers identified information technology, problem solving and critical thinking, and team leadership skills as the most soughtafter skills of new hires. • Venture Capital – In the Greater Sacramento region, there is a lack of education on the mechanics of angel and venture investing. Although funding opportunities have increased over the last several years, there is a tremendous gap in funding at the incubation stage. Therefore, increasing the knowledge and engagement of local high net worth individuals and outside venture capital will increase private wealth infusion into the region. • Tradable Sectors – Most commonly, tradable sectors consist of industries sectors whose output in terms of goods and services are traded outside a geographical area. These industries often produce venture backable companies that have the ability to scale and grow outside their location of origin. Conversely, non-tradable sectors generally consist of locallyrendered services, including health, education, retail and construction, which are services provided to the local economy.
• Inclusionary Workforce Development – The assessment and development of our collective community is a critical component of workforce development and a focus on diversity, equity and inclusion (removing systemic barriers), is of utmost importance. Accordingly, this effort will serve to build a pipeline of candidates from varying socioeconomic backgrounds for employment opportunities in a variety of sectors.
21 Roseville.ca.us/EconomicDevelopment
ORDINANCE NO. 6495
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCALYEAR 2021-22
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended as listed on the attached budget adjustment for the Roseville Entrepreneurship Center.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City ofRoseville, this day of , 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
REQUEST FOR BUDGET ADJUSTMENT
REQUESTER NAME & TITLE: Wayne Wiley, Economic Develompent Manager FISCAL YEAR: FY23 PREPARER NAME & TITLE: Wayne Wiley, Economic Develompent Manager COUNCIL DA TE (if applicable): 5/18/22 DEPARTMENT/DIVISION: _E_c _o _no_m_ic_D_e_v_lo_m_e _nt _D_e_,p_a_rt_m_e_n_t _________ ORDINANCE:
EXPENDITURES/EXPENSES/TRANSFERS OUT
ACCOUNT STRING BUDGET($) DESCRIPTION
Fund Account Center Project Adjustment
2280 5080 84001 10,000 Increase project budget for Entrepreneurship Center 2280 5301 84001 672,000 Increase project budget for Entrepreneurship Center 2280 5570 84001 150,000 Increase project budget for Entrepreneurship Center 2280 6587 84001 330,000 Increase project budget for Entrepreneurship Center TOTAL 1,162,000
REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET($)
Adjustment DESCRIPTION
Fund Account Center Project
TOTAL -
NET ADJUSTMENT 1,162,0001
FUND BALANCE
ACCOUNT STRING BUDGET($)
I Adjustment DESCRIPTION
Fund Account Center Project
2280 (1,162,000) Decrease available resources in the ARPA fund for Entrepreneurship Center
TOTAL (1,162,000)
Justification for Budget Adjustment:
The City is entering into a program agreement with the Growth Factory to help implement and manage the City's Entrepreneurship Center in Downtown Roseville. Project costs are anticipated to total $1,162,000 over a three-year period and include Tenant improvement costs, management services, and miscellaneous expenses. American Rescue Plan Act (ARPA) loss revenue funds will be transfered to a multi-year project. In association with the project, the City will establish a lease agreement with the Growth Factory to occupy space at 316 Vernon, resulting in approximately $158,460 in revenue collected as rent to the City.
REQUIRED APPROVALS:
4 I l-1 /}.lJ.,.
DATE BUDGET MANAGER / DESIGNEE DATE
CHIEF FINANCIAL OFFICER / DESIGNEE DATE CITY MANAGER / DESIGNEE DATE BUDGET DEPARTMENT USE ONLY:
POSTED BY DATE
Revised: June 24, 2019
4/27/20224:57 PM
500034
500034
500034
500034
City of Roseville & Growth Factory Annual Budget
(Years 1-3)
Year 1 Year 2 Year 3
GF Roseville GF Roseville GF Roseville
EXPENSES
Facilities
TIs $- $330,000.00 $- $- $- $-
Rent $7,250.00 $21,744.00 $28,992.00
Insurance
Utilities
Furniture & Equipment
Subtotal $7,250.00 $330,000.00 $21,744.00 $- $28,992.00 $- Personnel (salary+payroll taxes etc…)
Program design, implementation, space
management, partnership management
Growth Factory Leadership Team $85,000.00 $81,000.00 $92,000.00 $38,000.00 $115,000.00 $- 1 FTE Community Manager $99,000.00 $124,000.00 $124,000.00 1 PTE Event Coordinator $27,000.00 $45,000.00 $18,750.00 $33,000.00 Subtotal $85,000.00 $207,000.00 $92,000.00 $207,000.00 $133,750.00 $157,000.00 Expenses
Accounting/Bookkeeping $2,400.00 $2,400.00 $2,400.00
Advertising/Marketing $1,000.00 $10,000.00 $1,000.00 $10,000.00 $1,000.00 $10,000.00 Contract services (ie: AV, event staff) $8,000.00 $8,000.00 $8,000.00 Meals/Entertainment $5,000.00 $5,000.00 $5,000.00
Office Supplies $2,500.00 $2,500.00 $2,500.00
Software (hubspot, beautiful, etc...) $5,000.00 $5,000.00 $5,000.00 Taxes/Licenses
Subtotal $15,900.00 $18,000.00 $15,900.00 $18,000.00 $15,900.00 $18,000.00 Total Expenses $108,150.00 $555,000.00 $129,644.00 $225,000.00 $178,642.00 $175,000.00
INVESTMENT
Roseville budget for space $- $330,000.00 $- $- $- $-
Roseville Grant Funding $50,000 $50,000 $50,000
Roseville budget for programs $225,000.00 $225,000.00 $175,000.00 Total Investment $- $605,000.00 $- $275,000.00 $- $225,000.00 1 Growth Factory in
Roseville
Overview
The City of Roseville engaged the Greater Sacramento Economic Council (GSEC) to conduct an economic impact analysis of the Growth Factory’s operations in Roseville. The document provides an overview of the partnership and the anticipated economic and revenue impacts of the operations of Growth Factory company graduates and incubated main street businesses.
The Growth Factory Partnership in Roseville
The City of Roseville is partnering with the Growth Factory to establish an entrepreneurship center in 2,416 square feet located at 316 Vernon Street downtown. The partnership will involve six initiatives including:
1. Space activation in downtown resulting in patronage to downtown businesses
2. A “Dreamer’s” program similar to the Sacramento BID program
3. Partner engagement special events
4. Community engagement special events
5. Inclusive workforce development, training, and education resources
6. An innovation challenge partnering startups with civic and institutional leaders to pilot programs and technologies
Additionally, the Growth Factory will hold a minimum of 25% of their existing events at Roseville locations.
As a result of the five-year agreement and associated efforts and activities, the City anticipates more than 250 program participants will be engaged in year one, three tech-related businesses will scale within the community by year five, the city will provide $150,000 in business grants within three years, and six main street businesses in downtown will be incubated over five years.
Example Economic Impacts of Accelerated and Incubated Businesses Economic impacts measure the direct impacts - those created by the accelerated and incubated companies - as well as the multiplier effect of their operations on the City of Roseville economy.
Multiplier effects are generated by the supply- and innovation-chain companies that serve the direct operations as well as the impacts from consumer spending by the employees of both the direction and supply/innovation-chain companies.
2 Example Economic Impacts of an Accelerated Technology Company The technology company analysis assumes an employment level equal to the average employment for professional, scientific, and technical firms (North American Industry Classification System code 541 firms) per firm for the region – 11 employees. The average wage of employees this firm type is $89,302 per year. Accelerated firms are expected to have revenue growth of 14% over non-revenue firms (Aspen Institute, 2014). This analysis assumes the revenue growth translates into 14% job growth per year, taxable capital expenditures of $3,000 per employee, 250 square feet of office space per person, and telecommunications costs of $250 per employee.
The economic impact of an example accelerated technology company would degenerate 11 direct jobs in year one and grow to 19 direct jobs by year five. Direct income would grow from $982,000 to nearly $1.7 million by year five. Output would grow from $2.3 million in year one to just over $4.0 million by year five.
The direct operations will generate an indirect impact. In year one, six indirect jobs will be created or sustained and will grow to 10 jobs by year five. An additional $426,000 in income and $1.3 million in output will be generated in year five because of the indirect jobs. The spending of the direct and indirect jobs will support retail and other consumer businesses. In year one, seven induced jobs will be created or sustain and will grow to 13 jobs by year five. An additional $563,000 in income and $1.8 million in output will be generated in year five because of the induced jobs.
The total impact direct, indirect, and induced impact from the main street businesses will be 42 jobs, $2.7 million in income, and $7.1 million in output by year five.
Example Economic Impact of an Accelerated Technology Company to City of Roseville 1 2 3 4 5
Direct Jobs 11 13 15 17 19
Average Wage $89,302 $89,302 $89,302 $89,302 $89,302
Direct Income $982,322 $1,160,926 $1,339,530 $1,518,134 $1,696,738 Direct Output $2,336,196 $2,760,958 $3,185,721 $3,610,484 $4,035,247 Indirect Jobs 6 7 8 9 10
Indirect Income $246,464 $291,276 $336,088 $380,899 $425,711 Indirect Output $776,273 $917,414 $1,058,554 $1,199,695 $1,340,835 Induced Jobs 7 9 10 11 13
Induced Income $326,052 $385,335 $444,617 $503,899 $563,182 Induced Output $1,017,835 $1,202,895 $1,387,956 $1,573,017 $1,758,078 Total Jobs 24 29 33 37 42
Total Income $1,554,838 $1,837,537 $2,120,235 $2,402,932 $2,685,631 Total Output $4,130,304 $4,881,267 $5,632,231 $6,383,196 $7,134,160 Source: Greater Sacramento Economic Council, Regional Project Assessment System, 2022. 3 An Example Economic Impact of an Incubated Main Street Businesses Six main street businesses will be incubated however, to provide a conservative estimate, the economic impact of one incubated main street business is analyzed. The main street companies are expected to be retailers and to have a per business employment level approximately of 12 at average wages of $32,000. Jobs are expected to grow at the national growth rate for retailers of 2.0%. Each retailer is assumed to have 10,000 square feet of retail space and $250,000 in equipment.
An example main street business will create or sustain 11 direct jobs in year one growing to 12 direct jobs by year five. The direct jobs will generate $352,000 in direct income in year one growing to $384,000 in direct income by year five. Direct output will grow from $1.0 million in year one to $1.1 million by year five.
The indirect and induced impacts will generate another five jobs each year. The indirect and induced jobs will generate nearly $200,000 in income in year one growing to $216,000 by year five. Indirect and induced output will grow from $636,000 in year one to nearly $700,000 by year five.
The total impact direct, indirect, and induced impact from the main street businesses will be 17 jobs, $600,000 in income, and $1.8 million in output by year five.
Example Economic Impact of an Incubated Main Street Business to City of Roseville 1 2 3 4 5
Direct Jobs 11 11 11 12 12
Average Wage $32,000 $32,000 $32,000 $32,000 $32,000
Direct Income $352,000 $352,000 $352,000 $384,000 $384,000 Direct Output $1,001,953 $1,001,953 $1,001,953 $1,093,040 $1,093,040 Indirect Jobs 2 2 2 2 2
Indirect Income $86,926 $86,926 $86,926 $94,828 $94,828 Indirect Output $289,586 $289,586 $289,586 $315,912 $315,912 Induced Jobs 3 3 3 3 3
Induced Income $110,898 $110,898 $110,898 $120,980 $120,980 Induced Output $345,922 $345,922 $345,922 $377,369 $377,369 Total Jobs 16 16 16 17 17
Total Income $549,824 $549,824 $549,824 $599,808 $599,808 Total Output $1,637,461 $1,637,461 $1,637,461 $1,786,321 $1,786,321 Source: Greater Sacramento Economic Council, Regional Project Assessment System, 2022. 4 Example Revenue Impacts
GSEC conservatively estimates that an accelerated technology company and an incubated main street business would generate approximately $47,000 in taxes to the City of Roseville by year five. The tax impacts assume the bare minimum of investment by both types of firms. It is likely the tax impact will be higher. Utility user taxes and other fees are not estimated.
Sales tax depends on local equipment purchases by the businesses and supported population.
Sales tax is $10,149 in year one due to large retail business equipment purchases in year one.
Other sales tax impacts are due to ongoing equipment purchases by the tech firm and the supported population. Property tax depends on equipment purchases. 1 2 3 4 5 Total
Total City Property Tax $3,662 $4,005 $4,320 $4,739 $5,065 $21,791 Total City Sales Tax $10,149 $3,052 $3,454 $3,897 $4,300 $24,852 Total Tax $13,811 $7,057 $7,774 $8,636 $9,365 $46,643
Source: Greater Sacramento Economic Council, Regional Project Assessment System, 2022.
COUNCIL COMMUNICATION
CC #: 2070
File #: 0200 & 0201-01
Title: Fiscal Year 2020-2021 Surplus - Budget Adjustment Contact: Scott Pettingell 916-746-1306 [email protected] Meeting Date: 5/18/2022
Item #: 7.3.
RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt an ordinance to approve a budget adjustment to the Fiscal Year (FY) 2021-22 budget to appropriate $9,010,000 of FY2020-21 General Fund yearend surplus funds.
BACKGROUND
On January 12, 2022, staff provided the City Council with an overview of FY2020-21 year-end results, including the $28.5 million in surplus General Fund resources. The primary factors contributing to the surplus were conservative budgeting of sales and property tax revenues due to the pandemic, salary savings due to vacant positions, and expenditure controls due to uncertainty regarding the impact of the pandemic on the local economy. In addition, on January 12, 2022, the City Council approved a budget adjustment appropriating $5.4 million of the surplus for street resurfacing ($4.4 million), a contribution toward the replacement of a Tractor Drawn Aerial Fire Truck ($700,000), and replenishment of the General Fund contingency ($300,000).
Subsequently, at the February 22, 2022, City Council Priorities Workshop, staff provided the City Council recommendations to consider when appropriating the $23.1 million in remaining FY2020- 21 General Fund surplus funds.
In alignment with these recommendations, staff recommends that the City Council approve the appropriation of approximately $9 million to fund equipment replacement ($2.26 million), facility rehabilitation ($2 million), vehicle replacement ($375,000), the Police Department’s Real Time Crime Center ($240,000), a transfer to the Youth Development Fund ($3.5 million), and a transfer to the Unemployment Insurance Fund ($634,000). The following chart includes further details on the recommended appropriations:
Category/Project Department Budget ($)
Equipment
Rehabilitation
Library self- checkout
equipment at all three Parks, Recreation & Libraries (PRL) $ 800,000 lib
raries
RosevilleAquatics
Complex(RAC)-
CompetitionPool Pump
andMotor
PRL$50,000
RAC-Competition
Pool Heater
PRL$140,000
MikeShellito Indoor
Pool Pump(MSIP)and
Motor
PRL$30,000
DefibrillatorsFire$750,000
Chemical Detector-
APD2000
Fire$76,000
Chemical Detector-
Chempro100i Fire
$21,000
RadiosFire$200,000
Firingrangetarget
system
Police$190,000
Subtotal: $2,257,000
FacilityRehabilitation
MahanyParkTennis
Court
PRL$1,000,000
System-wideConcrete
Repairs
PRL$200,000
ConcessionFacilityat
RoyerPark
PRL$200,000
MSIPRe-plasterand
TileReplacements
PRL$300,000
FireTrainingCenterFire$304,000
Subtotal: $2,004,000
VehicleReplacement
ArmoredVehiclePolice$375,000
Subtotal: $375,000
New Initia
tives/Program
Real TimeCrime
Center(RTCC)-
Facility Improvements
Police$41,000
RTCC-Equipment: Video Wall & Comp
uter
Stations
Police$199,000
Subtotal: $240,000
Transfers
YouthDevelopment
Fund
PRL$3,500,000
Unemployment
Insurance Fund N/A $ 634,000
Subtotal: $ 4,134,000
TOTAL $ 9,010,000
Following are descriptions of each of the recommended budget adjustments:
Equipment Replacement ($2,257,000)
Library self-checkout equipment at all three libraries ($800,000) The City currently has Radio Frequency Identification (RFID) Library Automated Materials Handling Equipment installed at all three city libraries. The current RFID system operates on Microsoft Windows 7 software and is no longer supported; therefore, no software upgrades are available. Additionally, the expected lifespan of this equipment is five to six years. The City is currently in year eight with this equipment, and obtaining replacement parts is difficult.
RAC - Competition Pool Pump and Motor ($50,000)
The pool pump and motor at the RAC competition pool have reached the end of life.
Replacement of this equipment will help maintain existing service levels and create greater efficiencies.
RAC - Competition Pool Heater ($140,000)
The pool heater at the RAC competition pool has reached the end of life. Replacement of this equipment will help maintain existing service levels and create greater efficiencies.
Mike Shellito Pool - Pump and Motor Replacement ($30,000) The pool pump and motor at MSIP have reached the end of life. The replacement of this equipment will help maintain existing service levels and create greater efficiencies.
Defibrillators ($750,000)
The Fire Department (FD) currently utilizes defibrillators over ten years old and nearing the end of their service life. These devices are a critical component of advanced life support and are located on each Fire Engine and Ladder Truck. These devices monitor a patient's vital signs and can provide life-saving treatments for those in cardiac arrest.
Chemical Detectors - APD 2000 ($76,000) & Chempro 100i ($21,000) The FD operates a Type I Hazardous Materials Response Team and relies on various chemical detectors to perform core duties. This team currently utilizes 10-year-old ADP 2000 and Chempro 100i chemical detectors, which the manufacturer no longer supports. Replacing these pieces of equipment will promote interoperability and standardization among all Hazardous Materials Companies in the State of California.
Radios ($200,000)
The FD operates a Type I Hazardous Materials Response Team and a Type II Rescue Team.
The radios currently used by these teams are unsafe to operate in hazardous or a contaminated atmosphere. Staff recommends appropriating $200,000 in General Fund surplus funds to purchase intrinsically safe portable radios designed not to spark a fire or explode in hazardous situations.
Firing range target system ($190,000)
All equipment inside the Police Department (PD) shooting range is the original equipment and technology from the initial installation in 1998. Though the range backstop is professionally mined for lead removal, the range equipment has never been upgraded. Much of the range equipment is worn out, damaged, and needs replacement. The PD has depleted its original supply of spare parts from 1998. This recommended project would allow for installing a new stationary target holder system and a lateral moving (left and right) target carrier system. Additionally, the inside walls of the shooting range would be steel-plated out to a distance of 20 feet from the backstop, thus making the walls bulletproof. The range would also be outfitted with two mobile target carriers to assist in more realistic training.
Facility Rehabilitation ($2,004,000)
Mahany Park Tennis Court ($1,000,000)
The tennis courts at Mahany Park have large structural cracks throughout the court area, making them unsafe to use. Drainage is potentially undermining the ground under these courts. The project will address the drainage issue using the results of a site investigation through a consultant and reconstruct all six courts.
System-wide Concrete Repairs ($200,000)
Funding will repair lifting and cracked concrete pavement throughout the park system. These repairs are a subset of an ongoing issue where tree roots and drainage are lifting concrete pathways and causing structural cracks. PRL will prioritize the repair of concrete cracks that pose the most significant safety risk.
Concession Facility at Royer Park ($200,000)
This project will bring the concession facility interior up to code to better serve the community.
New sinks, electrical, sewer, and fans will be components of the project. The building is over 80 years old; it has been used for cooking large picnics in the past. Currently, the building is not up to code and cannot be used to serve food. The upgraded facility can be leased to a food vendor, thus reducing operational costs. In addition, the City may also use it for special events/occasions, and the revenue generated will offset operating costs.
MSIP Re-plaster and Tile Replacements ($300,000)
This project provides funds for replacing the plaster and tile in the swimming and warming pools.
Fire Training Center ($304,000)
The Roseville Fire Department operates a live burn prop located at the fire-training tower. The tower will be updated to comply with National Fire Protection Association 1402, which provides a more significant degree of safety during training evolutions.
Vehicle Replacement ($375,000)
Armored Vehicle ($375,000)
Placer County Sheriff purchased an armored vehicle (Lenco Bearcat) in 2005 as a regional asset serving Roseville PD, Lincoln PD, Rocklin PD, and the Placer County OES. This vehicle needs to be replaced as the vehicle is tough to start in cold weather, has very poor air conditioning in the rear compartment, and is showing a lot of wear from being in service for the region for the last 17 years. In addition, this Bearcat is a regional asset that takes a long time to deploy in the field. The new recommended vehicle is a 4-door model that allows for more seating, better-armored protection, and an improved drivetrain. The vehicle will be outfitted with a 4-wheel drive, skid plates, and a winch system to allow off-road rescue operations in open spaces, floods, and other emergencies. The Roseville PD will store the vehicle to be quickly deployed in the field for emergencies.
New Initiatives/Program ($240,000)
Real Time Crime Center (RTCC) - Equipment ($199,000)
The PD is in the process of developing an RTCC. The purpose of the RTCC is to provide real time information to field personnel to help make efficient and effective decisions when responding to in-progress incidents. The PD seeks to integrate multiple available data sources into one platform to make police responses to active incidents faster, more efficient, and safer for officers and the community. The RTCC will also serve as a command center for significant incidents and large-scale planned events. The project's scope includes a video wall display with processor and integration software.
RTCC - Facility Improvements ($41,000)
This project will fund facility improvements related to the video wall display and processor for the new RTCC. These funds will support related technology expenses, building improvements costs, and additional hardware needs to support the video wall and processor being installed for use in the RTCC.
Transfers ($4,134,000)
Youth Development fund ($3,500,000)
The Youth Development Fund had a beginning balance in FY2019-20 of approximately $900,000.
By the end of FY2020-21, there was a deficit of $2.6 million. The COVID-19 pandemic had a significant impact on this program. The program was completely shut down for several months and then had substantial restrictions and limitations due to State COVID-19 guidelines once it reopened. When Roseville schools resumed regular classroom learning, Adventure Club program enrollment was significantly reduced due to parents working from home or deciding not to return to work entirely and State licensing restrictions on the number of children the City could serve. The program is continuing to rebound as attendance increases. The Youth Development Fund subsidy of $3.5 million will bring the fund back to pre-pandemic levels as of the end of FY2020-21.
Additional transfers are anticipated in FY2022-23 to maintain the fiscal sustainability of this fund.
American Rescue Plan Act (ARPA) funding will be used for other General Fund expenditures, as a result of the General Fund subsidizing the Youth Development Fund due to lost revenue caused by the pandemic. ARPA funding cannot be used to cover expenditures incurred prior the passage of the act in March 2021.
Unemployment Insurance Fund ($634,000)
The Unemployment Insurance Fund had a beginning balance in FY2019-20 of approximately $1.04 million. The COVID-19 pandemic resulted in the layoff of part-time staff and increased unemployment payments. The increase in payments resulted in the available resources in this fund decreasing by $634,000 to approximately $410,000. Staff recommends transferring $634,000 in FY2020-21 surplus General Fund resources to the Unemployment Insurance Fund to bring available resources back to pre-pandemic levels and ensure that adequate resources are available for future unanticipated costs. Similar to the transfer to the Youth Development Fund, American Rescue Plan Act (ARPA) funding will be used for other General Fund expenditures, as a result of the General Fund replenishing the Unemployment Insurance Fund for additional claim costs caused by the pandemic. ARPA funding cannot be used to cover expenditures incurred prior the passage of the act in March 2021.
FISCAL IMPACT
The remaining balance of FY2020-21 General Fund surplus funding, before this recommended budget adjustment, is $23.1 million. The $9 million in recommended appropriations included in this Council Communication will bring the balance of surplus funds to $14.1 million. Staff are in the process of finalizing a recommended spending plan for the remaining balance. These plans include establishing a Development Services Stabilization Reserve ($2 million) and a Pension Reserve Trust ($2 million), as well as additional funds for the Sports Park Complex ($9.6 million) and Fire Department Station Alerting System ($540,000). Further information regarding these recommendations is forthcoming in the proposed FY2022-23 budget.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. Approval of a budget adjustment meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Goal C - Maintain a safe and healthy community
Goal E - Deliver exceptional city services
Respectfully Submitted,
Scott Pettingell, Budget Manager
Dennis Kauffman, Assistant City Manager/Chief Financial Officer _____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Ordinance 6492
Budget Adjustment
ORDINANCE NO. 6492
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2021-22
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2021-22, is hereby amended as listed on the attached budget adjustment for the Fiscal Year 2020-21 General Fund surplus funds.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City of Roseville, this ______________ day of _________________, 2022, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
_______________________________
MAYOR
ATTEST:
__________________________
City Clerk
COUNCIL COMMUNICATION
CC #: 2064
File #: 0200 & 0201-01
Title: City of Roseville Financial Policies for Fiscal Year 2022-23 and Budget Adjustment Contact: Dennis Kauffman 916-774-5313 [email protected] Meeting Date: 5/18/2022
Item #: 7.4.
RECOMMENDATION TO COUNCIL
Staff recommends City Council adopt a resolution adopting the City of Roseville Financial Policies effective July 1, 2022, including a new Development Services Stabilization Reserve Fund policy. Staff also recommends Council adopt an ordinance approving a budget adjustment, amending the FY2021-22 budget, to begin funding the new Development Services Stabilization Reserve Fund with a transfer of $2.03 million from the FY2020-21 General Fund year-end surplus generated by the Development Services Department to the new reserve fund.
BACKGROUND
The purpose of the City's financial policies is to determine appropriate and responsible financial guidelines for staff to follow when developing the budget, making recommendations and fulfilling their role as fiscal stewards of public funds. As new policies are developed and approved by Council, they will be added to this document. Each year the policies will be reviewed by staff, updated where recommended and submitted to Council for approval. A brief summary of the current policies is provided below:
Investment Policy
The purpose of the Investment Policy is to establish cash management and investment guidelines for the Assistant City Manager/Chief Financial Officer, who is responsible for the stewardship of the City of Roseville’s investment program. Each transaction and the entire portfolio must comply with California Government Code Sections 53600 and 53635 et seq. and the Investment Policy.
The Investment Policy conforms to the customary standards of prudent investment management and any changes to the policy must be adopted by the Council. The Investment Policy has been certified by the California Municipal Treasurers Association through their Investment Policy Certification Program. There are no proposed changes to the existing policy.
Debt Management Policy and Swap Policy
The purpose of the Debt Management Policy and Swap Policy is to provide guidelines for the issuance of bonds and other forms of indebtedness to finance necessary land acquisitions, capital construction, equipment, and other items for the City. There are no proposed changes to the existing policy.
Budget Development Policy
The purpose of the Budget Development Policy is to establish guidelines for developing the annual operating and capital budget. The policy maintains a citywide focus during the budget development process consistent with the General Principles of Governance adopted by the City Council. The policy includes guidelines for general revenues, a balanced budget and public involvement. The policy has been updated to reflect the City's policy for allocating indirect costs to capital improvement projects.
General Fund Reserves Policy
The purpose of the General Fund Reserves Policy is to establish a targeted level of General Fund operating reserves, a basic component of a financially strong city. The policy maintains an amount equal to 10% of annual General Fund budgeted operating costs as the minimum level of funding in the City’s General Fund Emergency Reserve and 15% of annual General Fund budgeted operating costs as the target level of funding for the City’s new General Fund Stabilization Reserve Fund. Appropriation from the Emergency Reserve and Stabilization Reserve Funds require approval of at least four City Council members. The policy also includes the Litigation Reserve Fund which was established to address legal matters that require proactive handling and funding. There are no proposed changes to the existing policy.
Development Services Stabilization Reserve Fund Policy
The purpose of the Development Services Stabilization Reserve (DSSR) Fund (Fund #1013) Policy is to maintain resources in a reserve that the City Council may draw from to maintain adequate staffing in order to continue delivering development services during an economic downturn. The City will use the DSSR to bridge gaps between projected and actual development revenues during periods of significant revenue decline. The reserve will be funded by fee revenue collected by Development Services in years when actual revenue exceeds budget estimates. The fee revenue used to fund the reserve will be General Fund fee revenue which is often collected in one fiscal year and expended over more than one fiscal year (e.g. for building inspections); no nexus-based development impact fee revenue will be used to fund the reserve. The DSSR target goal is equivalent to six months of estimated Development Services Department Building, Planning and Engineering General Fund revenues (approximately $2.8 million). This is a new policy recommended for adoption.
Federal Stimulus Reserve Fund Policy
The purpose of this Federal Stimulus Reserve Fund Policy is to establish a temporary Federal Stimulus Reserve Fund with the City’s allocation of the federal stimulus (2021 Coronavirus State and Local Fiscal Recovery Funds) until one-time expenditures or transfers to other City funds are approved and the funds are expended. There are no proposed changes to the existing policy.
Internal Service Funds - Operating and Replacement Reserves Policy The purpose of the Internal Service Funds - Operating and Replacement Reserves Policy is to establish (1) operating reserves to provide for continuity of service in the event of unanticipated changes to revenues or expenditures, particularly within a single fiscal year when charges for service on client operating departments already have been fixed through the adopted budget, and (2) replacement reserves to provide funding for capital improvement, rehabilitation, and replacement of capital assets, whose costs yield a burdensome or unaffordable peak in expenditure if assessed on client operating departments as they occur. There are no proposed changes to the existing policy.
Capital Improvement Program Rehabilitation Funding Policy The purpose of the Capital Improvement Program Rehabilitation Funding Policy is to address funding for the City's General Fund infrastructure rehabilitation and replacement. This policy has been updated to include funding for street maintenance and to increase the additional annual funding from $500,000 to $1,000,000 per year.
Pension Funding Policy
The Pension Funding Policy documents the method the City will use to determine its actuarially determined contributions to fund the long-term cost of pension benefits. The policy also provides guidance in making annual budget decisions; demonstrates prudent financial management practices; reassures bond rating agencies; and shows employees and the public how pensions will be funded. This policy has been updated to include establishing and making contributions to a Section 115 Pension Trust Fund.
Other Post-Employment Benefits (OPEB) Funding Policy
The purpose of the Other Post-Employment Benefits (OPEB) Funding Policy is to accumulate sufficient assets to fully finance the retiree healthcare benefits that retired employees receive throughout retirement. There are no proposed changes to the existing policy.
Workers’ Compensation and General Liability Funding Policy The purpose of the Workers’ Compensation and General Liability Funding Policy is to provide adequate financial resources to fund the City’s Workers’ Compensation and General Liability Programs and establish and maintain adequate reserves in the Workers’ Compensation and General Liability Internal Service Funds. There are no proposed changes to the existing policy.
Request for Proposals (RFP) Policy
The purpose of the Request for Proposals (RFP) Policy is to provide a uniform process for the issuance, evaluation, and selection of competitive proposals for services and/or customized goods. There are no proposed changes to the existing policy.
Other Policies
In addition to the policies recommended for adoption, staff is developing new financial policies in the areas of budgeting, accounting, purchasing and internal controls. Staff is also working to update other existing policies including the City of Roseville Goals and Policies Concerning the Use of Mello-Roos Community Facilities Act of 1982. Staff will bring forward new and updated policies for Council consideration individually or in annual updates of this Financial Policies document.
FISCAL IMPACT
Approval of the policies has no fiscal impact. However, implementation of the policies is expected to improve the fiscal position and financial health of the City. The Fiscal Year 2022-23 Proposed Budget is being developed based on these recommended financial policies. Adoption of the ordinance approving a budget adjustment amending the FY2021-22 budget, to begin funding the Development Services Stabilization Reserve, will transfer $2.03 million of the FY2020-21 General Fund surplus generated by the Development Services Department to the new reserve fund. The $2.03 million represents revenue collected in FY2020-21 in excess of the budget estimate that may be drawn from the reserve in the future to provide development services during an economic downturn.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.
Adoption of financial policies and a budget adjustment meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world Respectfully Submitted,
Dennis Kauffman, Assistant City Manager/Chief Financial Officer _____________________________
Dominick Casey, City Manager
ATTACHMENTS:
Description
Resolution 22-154
Financial Policies eff July 1 2022 - clean
Financial Policies eff July 1 2022 - redline
Ordinance 6490
Budget Adjustment
RESOLUTION NO. 22-154
ADOPTING THE CITY OF ROSEVILLE FINANCIAL POLICIES,
EFFECTIVE JULY 1, 2022
WHEREAS, the City of Roseville Financial Policies, effective July 1, 2022, have been reviewed by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the city of Roseville that the City of Roseville Financial Policies, effective July 1, 2022 are hereby adopted.
PASSED AND ADOPTED by the Council of the City of Roseville this day of , 20 , by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
City of Roseville
Financial Policies
Effective July 1, 2022
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 2 Table of Contents
Investment Policy ....................................................................................................................................3 Debt Management Policy ...................................................................................................................... 18 Swap Policy ........................................................................................................................................... 33 Budget Development Policy................................................................................................................... 47 General Fund Reserves Policy ................................................................................................................ 52 Development Services Stabilization Reserve (DSSR) Fund Policy ............................................................ 56 Federal Stimulus Reserve Fund Policy.................................................................................................... 58 Internal Service Funds - Operating and Replacement Reserves Policy .................................................... 60 Capital Improvement Program Rehabilitation Funding Policy................................................................. 67 Pension Funding Policy .......................................................................................................................... 69 Other Post-Employment Benefits (OPEB) Funding Policy ....................................................................... 73 Workers’ Compensation and General Liability Funding Policy ................................................................ 76 Interfund Loans Policy ........................................................................................................................... 78 Request for Proposals (RFP) Policy......................................................................................................... 81 City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 3 City of Roseville
Investment Policy
TABLE OF CONTENTS
I. INTRODUCTION ..........................................................................................................................4 II. SCOPE.........................................................................................................................................4 III. PRUDENCE..................................................................................................................................4 IV. OBJECTIVES.................................................................................................................................5 V. DELEGATION OF AUTHORITY.......................................................................................................5 VI. ETHICS AND CONFLICT OF INTEREST ...........................................................................................6 VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS................................................................6 VIII. PERMITTED INVESTMENT INSTRUCTIONS....................................................................................6 IX. REVIEW OF INVESTMENT PORTFOLIO ....................................................................................... 12 X. INVESTMENT POOLS ................................................................................................................. 13 XI. COLLATERALIZATION................................................................................................................. 13 XII. SAFEKEEPING AND CUSTODY .................................................................................................... 13 XIII. DIVERSIFICATION...................................................................................................................... 13 XIV. MAXIMUM MATURITY .............................................................................................................. 14 XV. INTERNAL CONTROLS................................................................................................................ 14 XVI. PERFORMANCE BENCHMARK.................................................................................................... 14 XVII. REPORTING REQUIREMENTS..................................................................................................... 14 XVIII. INVESTMENT POLICY ADOPTION............................................................................................... 15 XIX. GLOSSARY................................................................................................................................. 15 City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 4 I. INTRODUCTION
The purpose of this document is to identify various policies and procedures that enhance opportunities for a prudent and systematic investment policy and to organize and formalize investment-related activities.
The investment policies and practices of the City of Roseville (City) are based on state law and prudent money management. All funds will be invested in accordance with this investment policy and Article 2 of Chapter 4 of the California Government Code. This policy is in compliance with the provisions of the California Government Code, Sections 53600 through 53659, and the authority governing investments for municipal governments.
II. SCOPE
The investment policy applies to all financial assets of the City as accounted for in the Comprehensive Annual Financial Report (CAFR). Policy statements outlined in this document focus on the City’s pooled funds, but will also apply to all other funds under the City’s Assistant City Manager/Chief Financial Officer’s span of control unless specifically exempted by statute or ordinance.
Proceeds of debt issuance shall be invested in accordance with the permitted investment provisions of their specific bond indentures. If, in the opinion of the City’s Assistant City Manager/Chief Financial Officer, matching the segregated investment portfolio of the bond reserve fund with the maturity schedule of an individual bond issue is prudent given current economic analysis, the investment policy authorizes beyond the five year maturity limitation as outlined in this document. The intent to invest in securities with longer maturities shall be disclosed in the permitted investment language authorized by the City Council in an indenture of trust.
The policy does not cover funds held by the Public Employees Retirement System nor funds of the Deferred Compensation program or the Other Post Employment Benefit Trust.
III. PRUDENCE
The standard of care to be used by investment officials shall be the "prudent investor" standard and shall be applied in the context of managing an overall portfolio. The “prudent investor” standard states that:
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 5 When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.
Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
IV. OBJECTIVES
The primary objectives, in priority order, of the investment activities of the City shall be:
A. Safety
Safety of principal is the foremost objective of the investment program. City investments shall be undertaken in a manner that seeks to ensure preservation of Capital in the portfolio. To further achieve the safety objective, the amount invested in all investment categories is limited to a percentage of the portfolio as defined in the section “VIII. PERMITTED INVESTMENT INSTRUMENTS”.
B. Liquidity
The investment portfolio of the City will remain sufficiently liquid to enable the City to meet its cash flow requirements.
C. Return on Investment
The investment portfolio of the City shall be designed with the objective of attaining a market rate of return on its investments consistent with the constraints imposed by its safety objective and cash flow considerations.
V. DELEGATION OF AUTHORITY
The City Council hereby delegates management responsibly of the investment program to the Assistant City Manager/Chief Financial Officer. The Assistant City Manager/Chief Financial Officer shall be responsible for all transactions undertaken and shall establish City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 6 a system of controls to regulate the activities of subordinate officials. The Assistant City Manager/Chief Financial Officer may delegate investment decision making and execution to the Controller in absence of the Assistant City Manager/Chief Financial Officer. No person may engage in an investment transaction except as provided under the limits of this policy unless specifically exempted by statute or ordinance.
VI. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions.
VII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Assistant City Manager/Chief Financial Officer and/or his/her designee will maintain a list of approved financial institutions authorized to provide investment services to the City in the State of California. These may include “primary” dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1. A determination should be made to insure that all approved broker/dealer firms, and individuals covering the public agency, are reputable and trustworthy. In addition, the broker/dealer firms should have the ability to meet all of their financial obligations in dealing with the Public Agency. The firms, and individuals covering the agency, should be knowledgeable and experienced in Public Agency investing and the investment products involved. No public deposit shall be made except in a qualified public depository as established by the established state laws. All financial institutions and broker/dealers who desire to conduct investment transactions with the public agency must supply the Assistant City Manager/Chief Financial Officer with a completed broker/dealer questionnaire and certification of having read the City’s investment policy. In addition, broker/dealers must certify annually of having read the City’s investment policy.
VIII. PERMITTED INVESTMENT INSTRUCTIONS
The City shall limit investments in any one non-government issuer, except investment pools, to no more than 5% regardless of security type.
A. U.S. Treasury obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. Up to 100% of the City’s investment portfolio may be invested in government obligations.
B. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. This shall include any mortgage pass City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 7 through security issued and guaranteed by a Federal Agency with a maximum final maturity of five years. Purchase of Federal Agency issued mortgage-backed securities authorized by this subdivision may not exceed 20% of the City's surplus money; all other investments in Federal Agency securities are unrestricted.
C. Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency or by a department, board, agency or authority of the state or any local agency, provided that the obligations are rated in one of the two highest categories by a nationally recognized statistical-rating organization (NRSRO). Up to 100% of the City’s investment portfolio may be invested in California municipal obligations.
D. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of these states.
E. Repurchase Agreements used solely as short-term investments not to exceed 30 days. Up to 100% of the City’s investment portfolio may be invested in repurchase agreements.
The following collateral restrictions will be observed:
1. Only U.S. Treasury securities or Federal Agency securities, as described in section VIII. PERMITTED INVESTMENT INSTRUMENTS, paragraph (A) and (B) will be acceptable collateral. All securities underlying Repurchase Agreements must be delivered to the City’s custodian bank by book entry, physical delivery, or by a third party custodial agreement. The total of all collateral for each Repurchase Agreement must equal or exceed, on the basis of market value, 102% of the funds borrowed against those securities. For any Repurchase Agreement with a term of more than one day, the value of the underlying securities must be reviewed on a weekly basis and the value of the underlying securities brought back up to 102% no later than the next business day.
2. Market value must be calculated each time there is a substitution of collateral.
3. The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to Repurchase Agreement.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 8 4. The City may enter into Repurchase Agreements only with primary dealers of the Federal Reserve Bank of New York.
5. The City will have specific written agreements with each firm with which it enters into Repurchase Agreements.
6. Reverse repurchase agreements will not be allowed.
F. Banker’s Acceptances, otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank.
Purchases of Banker's Acceptances may not exceed 180 days maturity or 40% of the City’s investment portfolio.
G. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in section “VIII.
PERMITTED INVESTMENT INSTRUMENTS”, paragraph (G1) or (G2).
1. The entity meets the following criteria:
a. Is organized and operating in the United States as a general corporation.
b. Has total assets in excess of five hundred million dollars ($500,000,000).
c. Has debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO.
2. The entity meets the following criteria:
a. Is organized within the United States as a special purpose corporation, trust, or limited liability company.
b. Has program wide credit enhancements including, but not limited to, over collateralizations, letters of credit, or surety bond. c. Has commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.
Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than 10% of the outstanding paper of an issuing corporation.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 9 Purchases of commercial paper may not exceed 40% of the City’s investment portfolio.
H. Medium-term corporate notes issued by corporations organized and operating within the United States or by depository institutions licensed by the U.S. or any state and operating within the U.S. Medium-term corporate notes shall be rated in a rating category "A" or its equivalent or better by a nationally recognized rating service.
Purchase of medium-term corporate notes may not exceed 30% of the City’s investment portfolio.
I. FDIC insured or fully collateralized time certificates of deposit. Purchases of time certificates of deposit in combination with negotiable certificates of deposit may not exceed 30% of the City’s investment portfolio.
J. Negotiable certificates of deposit or deposit notes issued by a nationally or state-chartered bank, a state or federal savings and loan association, a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank provided that the senior debt obligations of the issuing institution are rated "A" or better by an NRSRO.
The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the money are prohibited from investing local agency funds, or funds in the custody of the local agency, in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency or any person with investment decision making authority in the administrative office manager’s office, budget office, auditor-controller’s office, or treasurer’s office of the local agency also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposits.
All certificates of deposit must be properly collateralized in accordance with Section 53652 of the California Government Code or fully insured by the Federal Deposit Insurance Corporation (FDIC).
Purchase of time certificates of deposit in combination with negotiable certificates of deposit may not exceed 30% of the City’s investment portfolio.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 10 K. State of California's Local Agency Investment Fund The Local Agency Investment Fund (LAIF) portfolio should be reviewed periodically. Investment in LAIF may not exceed the legally authorized limits.
L. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision these companies shall either: (1) have attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations or (2) have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds and with assets under management in excess of $500,000,000.
The purchase price of shares of beneficial interest purchased shall not include any commission that the companies may charge and shall not exceed 20% of the City’s investment portfolio. Further, no more than 10% of the City’s investment portfolio may be invested in shares of beneficial interest of any one money market fund.
M. Shares in a California common law trust established pursuant to Title 1, Division 7, Chapter 5 of the Government Code of the State of California that invests exclusively in investments permitted by Section 53635 of Title 5, Division 2, Chapter 4 of the Government Code of the State of California, as it may be amended. Up to 100% of the City’s investment portfolio may be invested in this investment type.
N. Supranationals are United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated "AA-", its equivalent, or better by an NRSRO.
Purchases of supranationals shall not exceed 30% of the investment portfolio of the City. Supranationals are permitted by California Government Code § 53601 (q) effective January 1, 2015.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 11 O. A mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-back certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond. Securities eligible for investment under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less. No more than 20% of the City's surplus funds may be invested in this type of security.
Where this section specifies a percentage limitation for a particular category of investment, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit of the issuing organization at the time the security is purchased. If an investment falls below the minimum purchase rating, the Investment Review Committee will perform a timely review to sell or hold the investment.
P. Prohibited Investments
For purposes of this policy, a derivative is defined as any security where the value is linked to or derived from an underlying asset or benchmark. Any security type or structure not specifically approved by this policy is hereby specifically prohibited. The City will not use such derivatives as range notes, dual index notes, inverse floating rate notes, deleveraged notes, or notes linked to lagging indices or to long term indices, nor will the City invest in reverse repurchase agreements or interest-only strips derived from a pool of mortgages. The City will not invest in securities that could result in zero or negative interest accrual if held to maturity, except, in the event of, and for the duration of, a period of negative market interest rates, securities issued by, or backed by, the U.S.
Government to preserve principal. This policy does not preclude the use of repurchase agreements and callable securities, as they do not fall within the definition of a derivative as described herein.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 12 Summary of Maximum Percentage Limitations of Investments by Investment Type Minimum
Credit
Quality at Maximum Maximum
Maximum Time of Percentage Investment
Authorized Investment Type Maturity Purchase Allowed In One Issuer U.S. Treasury Obligations 5 Years None None None
U.S. Agency Securities 5 Years None None None
Forward Delivery Agreements N/A A None None
Local Agency Bonds 5 Years None None None
Repurchase Agreements 30 days None None None
Bankers' Acceptances 180 days None 40% 30%
Commercial Paper 270 days A-1 40% 10%
Medium-Term Notes 5 Years A 30% 10%
Collateralized Time Deposits 5 Years None 30% None
Negotiable Certificates of Deposit 5 Years A 30% None
Local Agency Investment Fund
(LAIF) N/A None None LAIF limit
Insured Saving Accounts N/A None None None
Money Market Mutual Funds N/A None 20% 10%
Shares in a California Common Law
Trust N/A None None None
Interest Rate Swaps N/A None None None
Supranationals 5 Years AA- 30% None
Mortgage Pass-Through Securities 5 Years AA 20% None
IX. REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City must be in compliance with Permitted Investments at the time of purchase. Because some securities may not comply subsequent to the date of purchase, the Assistant City Manager/Chief Financial Officer shall at least annually review the portfolio to identify those securities that do not comply. The Assistant City Manager/Chief Financial Officer shall report major and critical incidences of noncompliance identified through the review of the portfolio.
The Investment Review Committee will meet at least quarterly to discuss the investments in the City’s portfolios.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 13 X. INVESTMENT POOLS
A thorough investigation of any investment pool is required prior to investing and should be monitored on an ongoing basis. The following information should be obtained and analyzed.
A. A description of eligible of investment securities.
B. A written statement of investment policies and objectives.
C. A description of interest calculations and their distribution, and the treatment of gains and losses.
D. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
E. A description of who may invest in the program, how often, and what size of deposits and withdraws are allowed.
XI. COLLATERALIZATION
Collateral for Non-negotiable Certificates of Deposit and Negotiable Certificates of Deposit must comply with California Government Code section 53652. In addition, if the Certificate of Deposit is not FDIC insured, collateral is required equal to 110% of principal.
XII. SAFEKEEPING AND CUSTODY
The City shall take from such financial institution a receipt for securities so deposited. All security transactions, including collateral for repurchase agreements, entered into the City shall be conducted on a delivery-versus-payment (DVP) basis pursuant to the approved custodial safekeeping agreements. The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the Assistant City Manager/Chief Financial Officer of the City; the Assistant City Manager/Chief Financial Officer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the Assistant City Manager/Chief Financial Officer.
XIII. DIVERSIFICATION
The City’s investment pool will be diversified to avoid incurring unreasonable and avoidable risks. The investments will be diversified by security type, maturities of those investments, and institutions in which those investments are made.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 14 XIV. MAXIMUM MATURITY
Investment maturities shall be based on a review of cash flow forecasts. Maturities will be scheduled so as to permit the City to meet all projected obligations while minimizing interest rate risk and maximizing earnings. Unless specified below, the maximum maturity will be no more than five years from purchase date to maturity date.
City Council has granted permission to invest the following fund accounts where liquidity is not the primary investment objective, in Federal Treasury or Agency securities with maturities up to ten years. The specified fund accounts include:
• The City’s Pooled Fund, limited to 25% of the total pool • Citizens’ Benefit Trust
• North Central Wetlands Endowment
• Aquatics Complex Maintenance
• Woodcreek West Endowment
XV. INTERNAL CONTROLS
The Assistant City Manager/Chief Financial Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, fraud or misuse. An analysis by an external independent accounting firm shall be conducted annually to review internal controls, account activity, and compliance with the investment policies.
XVI. PERFORMANCE BENCHMARK
The investment portfolio will be designed to obtain a market rate of return during budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow needs. The Investment Review Committee has elected to use for its performance standard the Constant Maturity Treasury (CMT) Index. For the Pooled Portfolio, the 12 month moving average yield on 3Yr CMT will be used and for Citizens’ Benefit Trust portfolio, the 12 month moving average yield on 5Yr CMT will be used. All other City portfolios will follow the 2Yr CMT.
XVII. REPORTING REQUIREMENTS
The Assistant City Manager/Chief Financial Officer shall submit monthly investment reports to the City Manager and make these reports available to the City Council in the Finance Department office. The reports shall include, at a minimum, the following information for each individual investment:
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 15 • Description of investment instrument
• Issuer name
• Yield on cost
• Purchase date
• Maturity date
• Book value
• Par value
• Current market value
• Transaction activity
• Interest earnings summary
XVIII. INVESTMENT POLICY ADOPTION
The City’s investment policy shall be adopted by resolution by the City Council. The policy shall be reviewed annually by the Assistant City Manager/Chief Financial Officer and/or his/her designee and any modifications made thereto must be approved by the City Council.
XIX. GLOSSARY
Agencies - Federal agency and instrumentality securities.
Asked - The price at which securities are offered.
Bid - The price offered by a buyer of securities (when one sells securities, one asks for a bid). See “Offer”.
Benchmark - A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.
Broker-Dealer – a person or a firm who can act as a broker or a dealer depending on the transaction. A broker brings buyers and sellers together for a commission. They do not take a position. A dealer acts as a principal in all transactions, buying and selling for his own account.
Certificate of Deposit (CD) – A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CDs are typically negotiable.
Collateral – Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 16 Custody – Safekeeping services offered by a bank, financial institution or trust company, referred to as the “custodian.” Service normally includes the holding and reporting of the customer’s securities, the collection and disbursement of income, securities settlement and market values.
Delivery Versus Payment –A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or custodian. It ensures that securities are deposited in an eligible financial institution prior to the release of funds. Securities should be held by a third-party custodian as evidenced by safekeeping receipts.
Diversification – Dividing investment funds among a variety of securities offering independent returns.
Federal Agency Obligation – A debt instrument issued by one of the federal agencies.
Federal agencies are considered second in credit quality and liquidity only to U.S.
Treasuries.
Investment Review Committee –The investment review committee consists of the City Manager, Assistant City Manager/Chief Financial Officer and members of the Finance Department.
Liquidity – An investment that can be converted easily and rapidly into cash without a substantial loss of value.
Local Agency Investment Fund (LAIF) – The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
Market Value – The price at which a security is trading and could presumably be purchased or sold on a specific date.
Maturity – The date upon which the principal or stated value of an investment becomes due and payable.
Money Market Fund – a type of safe investment comprising a variety of short-term securities with high quality and high liquidity. The fund provides interest to shareholders and must maintain a stable net asset value (NAV) of $1 per share.
Offer - The price asked by a seller of securities (when one buys securities, one asks for an offer). See “Asked” and “Bid”.
Portfolio – Collection of securities held by an investor.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 17 Principal – the original cost of a security. It represents the amount of capital or money that the investor pays for the investment.
Prudent Investor Standard – An investment standard that all investments should be made with care, skill, prudence and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.
Rate of Return - The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity; on a bond, the current income return.
U.S. Treasury – Government debt issued by the United States Department of the Treasury through the Bureau of the Public Debt. Treasury securities are the debt financing instruments of the United States federal government, and they are often referred to simply as Treasuries. There are four types of marketable treasury securities:
Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities (TIPS). All of the marketable Treasury securities are very liquid and are heavily traded on the secondary market.
Yield - The rate of annual income return on an investment, expressed as a percentage.
Yield-To-Call (YTC) - The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date.
Yield-To-Maturity - The current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 18 City of Roseville
Debt Management Policy
TABLE OF CONTENTS
I. INTRODUCTION ........................................................................................................................ 20 II. SCOPE....................................................................................................................................... 20 III. OBJECTIVES AND POLICY GOALS................................................................................................ 20 IV. DEBT ISSUANCE......................................................................................................................... 20 A. Types of Bond Sales...................................................................................................... 21
1. Competitive Sale.............................................................................................. 21
2. Negotiated Sale ............................................................................................... 21
3. Private Placement/Bank Direct Purchase (BDP)................................................ 21 B. Issuer Characteristics.................................................................................................... 22
1. Market Familiarity............................................................................................ 22
2. Credit Strength ................................................................................................ 22
3. Policy Goals ..................................................................................................... 22 C. Financing Characteristics.............................................................................................. 22
1. Type of Debt Instrument.................................................................................. 22
2. Issue Size ......................................................................................................... 22
3. Market Conditions and Timing ......................................................................... 23
4. Story Bonds ..................................................................................................... 23 V. FINANCIAL SERVICE PROVIDERS ................................................................................................ 23 A. Selection ...................................................................................................................... 23 B. Use of Independent Financial Advisors......................................................................... 24 C. Communication/Solicitation ......................................................................................... 24 VI. DEBT MANAGEMENT PROCESS – TAX STATUS........................................................................... 24 A. Tax-Exempt .................................................................................................................. 24 B. Taxable......................................................................................................................... 25 VII. DEBT MANAGEMENT PROCESS – TYPE OF DEBT........................................................................ 25 A. Fixed Rate Debt............................................................................................................ 25 B. Variable Rate Debt ....................................................................................................... 25 C. Use of Alternative Debt Instruments ............................................................................ 26
1. Derivative Products.......................................................................................... 26 City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 19 VIII. DEBT MANAGEMENT PROCESS – DEBT CAPACITY ..................................................................... 26 IX. DEBT MANAGEMENT PROCESS – SECURITY OF DEBT................................................................. 26 A. General Obligation (G.O.) Bonds................................................................................... 26 B. Revenue Bonds............................................................................................................. 27 C. Certificates of Participation (COP) Bonds...................................................................... 27 D. Housing Bonds ............................................................................................................. 27 E. Community Facilities District (CFD) Bonds .................................................................... 27 F. Special Assessment Bonds............................................................................................ 28 X. DEBT MANAGEMENT PROCESS – PURPOSE OF FINANCING ....................................................... 28 A. New Money Financing .................................................................................................. 28 B. Refunding Bonds.......................................................................................................... 28 XI. DEBT MANAGEMENT PROCESS - CREDIT RATINGS..................................................................... 29 A. Rating Agency Relationships......................................................................................... 29 B. Use of Rating Agencies................................................................................................. 29 XII. DEBT MANAGEMENT PROCESS – CREDIT ENHANCEMENT......................................................... 30 A. Bond Insurance ............................................................................................................ 30
1. Benefit Analysis ............................................................................................... 30
2. Selection.......................................................................................................... 30 B. Bank Facilities (Letters of Credit) .................................................................................. 30 XIII. DEBT MANAGEMENT PROCESS – STRUCTURAL FEATURES......................................................... 31 A. Maturity....................................................................................................................... 31 B. Debt Service Structure.................................................................................................. 31 C. Lien Levels.................................................................................................................... 31 D. Capitalized Interest ...................................................................................................... 31 XIV. INVESTMENT OF BOND PROCEEDS............................................................................................ 32 XV. CONTINUING DISCLOSURE ........................................................................................................ 32 XVI. ARBITRAGE REBATE .................................................................................................................. 32 XVII. INTERNAL CONTROLS AND POST ISSUANCE COMPLIANCE......................................................... 32 City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 20 I. INTRODUCTION
The Finance Department of the City of Roseville (the “City”) has developed this Debt Management Policy (the “Debt Policy”) to provide guidelines for the issuance of bonds and other forms of indebtedness to finance necessary land acquisitions, capital construction, equipment, and other items for the City.
While the issuance of debt is frequently an appropriate method of financing capital projects and major equipment acquisitions, such issuance must be carefully monitored to preserve the City’s credit strength and to provide the necessary flexibility to fund future capital needs.
II. SCOPE
This Debt Policy shall govern, except as otherwise covered by the law, City Charter and City Code, the issuance and management of all debt and lease financings funded in the capital markets. While adherence to the Debt Policy is desired, the City recognizes that changes in the capital markets as well as unforeseen circumstances, may from time to time produce situations that are not covered by the Debt Policy and may require modifications or exceptions to achieve City goals.
The City’s Debt Policy shall be reviewed, and updated if necessary, on an annual basis.
The Chief Financial Officer (CFO) with the assistance of the General Accounting staff shall have the responsibility and authority for structuring, implementing and managing the City’s debt and financing program, in accordance with City Council authorizations.
III. OBJECTIVES AND POLICY GOALS
The City has earned some of the highest credit ratings in the nation and as a result receives some of the lowest possible interest rates on its debt. These low interest rates result in a lower overall cost of capital to the City. This Debt Policy will assist the City in determining appropriate uses of debt financing, establish certain debt management goals and assist the City in maintaining its high credit ratings, while assuming a prudent level of financial risk and preserving the City’s flexibility to finance future capital programs and requirements. Additionally, this Debt Policy is intended to set forth criteria for selecting firms to provide certain financial, legal, and other related services that will ensure that a fair and open selection process is used which provides opportunities for all qualified firms, including minority and women owned businesses.
IV. DEBT ISSUANCE
There are three general methods of issuing debt obligations, a competitive sale, negotiated sale and private placement.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 21 A. Types of Bond Sales
1. Competitive Sale
In a competitive sale, security dealers submit bids either in a sealed bid or electronically secure process and the security dealer with the lowest True Interest Cost (TIC) and in compliance with the bid parameters is awarded the bonds.
2. Negotiated Sale
In a negotiated sale, an underwriter or underwriter syndicate is selected through a Request for Qualifications (RFQ) process or a Request for Proposal (RFP) process. The interest rate and underwriter’s fee are negotiated prior to the sale, based on market conditions.
3. Private Placement/Bank Direct Purchase (BDP)
A private placement or bank direct purchase is a sale that is structured specifically for one purchaser, such as a mutual fund or a bank. BDPs are usually quicker and less expensive for municipalities than competitive or negotiated bond sales because they impose fewer requirements on the issuer. The interest rate may be a fixed or variable rate, as agreed between the issuer and purchaser. The term of the bonds may range from under 10 years to 15 years or not much longer, as agreed between the issuer and purchaser. The bonds may or may not be tax-exempt bonds for federal income tax purposes. If the CFO, or his/her designee, determines that it is in the best interest of the City from a cost or administrative standpoint, the Finance Department may negotiate financing terms with banks and financial institutions for specific borrowings.
It shall be the policy of the City to ensure the lowest risk and lowest overall interest rate to the City when issuing debt either through a competitive sale, negotiated sale or private placement, where appropriate. The City shall use the following criteria to determine whether a competitive or negotiated sale should be used.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 22 B. Issuer Characteristics
1. Market Familiarity
A frequent issuer of a well-recognized credit such as general obligation bonds can generally sell these bonds through a competitive sale since investors and underwriters are familiar with the quality of the credit. A negotiated sale may be appropriate if extensive pre-marketing to investors is desired or required.
2. Credit Strength
The higher the credit quality of the bonds being issued, the more likely the bonds can be sold using a competitive sale due to the high demand for high quality municipal bonds. High quality credits fare well in competitive sales.
3. Policy Goals
A competitive sale does not provide the City with the flexibility of choosing the underwriter or underwriter syndicate. If the CFO concludes that determining the composition of the underwriter syndicate to achieve certain policy objectives is important, then a negotiated sale will be required. However, if the CFO selects the negotiated sale solely for policy reasons then the specific rationale and criteria for selection should clearly be specified.
C. Financing Characteristics
1. Type of Debt Instrument
The market favors familiar debt instruments such as general obligation bonds backed by the full faith and credit of the City. New credit types may require an education process that is more conducive to a negotiated sale until the market becomes comfortable with the credit.
2. Issue Size
The size of the bond sale will influence both investor interest in the bonds and the market’s ability to absorb the bonds. In general if the bond sale is too small or too large, a negotiated sale may be necessary. A small sale may require greater marketing to garner investor interest while a City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 23 large sale may be difficult for the market to absorb without the presale activity available in the negotiated sale process.
3. Market Conditions and Timing
During periods of stable interest rates, market timing is not as critical.
However, during periods of volatile interest rates, the timing of the sale becomes more critical. Bond refundings are also often very interest rate sensitive in terms of the potential level of savings or the general feasibility of the refunding. The negotiated sale provides more flexibility in terms of the structure of the bond sale as well as the timing of the bond sale and may be more appropriate when issuing refunding bonds and when interest rates are volatile.
4. Story Bonds
Bonds that require a detailed explanation due to the complexity of the credit or the repayment of the bonds are often referred to as “Story Bonds”. Due to their complexity and the additional explanation these bonds require, an extensive pre-marketing campaign is necessary. Story Bonds often require a negotiated sale composed of an underwriting syndicate that is qualified to market the bonds in order to obtain the lowest financing cost for the City.
V. FINANCIAL SERVICE PROVIDERS
A. Selection
In connection with debt financings, financial advisors, underwriters, and other service providers will be selected from a Qualified Vendors List (QVL) developed through a periodic Request for Qualifications (RFQ) process or, for individual financings, through a Request for Proposals (RFP) process, whichever method is deemed most appropriate given the specifics of the financing. At the discretion of the CFO, contracts may be awarded on a sole source basis if it is clear that an RFQ/RFP process is not feasible or not in the best interest of the City.
For competitive sales, any security dealer meeting the qualification criteria outlined in the competitive bid notice may bid in the competitive sale. For negotiated sales, only those underwriters qualified under the RFQ/RFP process may be selected. Underwriters or underwriter syndicates will be selected by the CFO. The allocation of bonds among syndicate members will be at the sole discretion of the CFO with the approval of the City Manager or his/her designee.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 24 B. Use of Independent Financial Advisors
The City will hire financial advisors who are independent. In the event the best available financial advisor is an investment banking firm, the firm will under no circumstances be permitted to participate as the lead underwriter or as a member of an underwriter syndicate that is bidding on the bonds for which the firm is acting as a financial advisor. In addition, if the firm has any profit sharing or other type of agreement with any member of the underwriting syndicate for the transaction in question, they will not be allowed to act as the financial advisor. In general, no agreement will be permitted that would compromise the firm’s ability to provide independent advice or that could be reasonably perceived by the City as a conflict of interest. Advisors must alert the CFO, in writing, of any conflict, potential conflict, or potentially perceived conflict prior to entering into an agreement with the City, or if occurring after entering into an agreement with the City, as soon as the conflict, potential conflict, or potentially perceived conflict arises.
C. Communication/Solicitation
All financial consultants, including all investment banking firms, financial advisors, bond counsel, and other consultants hired in connection with any bond transaction will direct all communications, solicitations and questions to the CFO or his/her designee. Underwriters are reminded that under Rule G-37 of the Municipal Securities Rulemaking Board (MSRB) that a firm may be banned from providing underwriting services to the City for two years for making any political contributions to elected City officials.
VI. DEBT MANAGEMENT PROCESS – TAX STATUS
Prior to the issuance of any bonds, the Finance Department, in conjunction with bond counsel and the City Attorney’s Office will evaluate the tax status of any bond sales.
A. Tax-Exempt
Interest on tax-exempt bonds is excluded from the gross income of its owners for federal income tax purposes and from California income taxes and as a result tax-exempt bonds can be sold at a lower true interest cost than taxable bonds.
The City, along with bond counsel, will evaluate all projects to be funded to assess their eligibility to be funded by tax-exempt bonds. The City will make every effort to ensure that all tax regulations are complied with to ensure the bonds maintain their tax-exempt status.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 25 B. Taxable
Certain municipal bonds are sold as taxable bonds because they are issued for purposes that the federal government deems do not provide a significant benefit to the public at large or involve “private activity”. In addition, certain tax laws such as the alternative minimum tax (AMT) reduced the tax exemption applicable to certain types of bonds and to certain taxpayers. Taxable bonds will be used whenever a particular project has the potential for private activity or other uses that may call into question the eligibility to use tax-exempt financing.
VII. DEBT MANAGEMENT PROCESS – TYPE OF DEBT
A. Fixed Rate Debt
Longer term debt usually consists of fixed interest rates over the term of the bonds and should be used to finance essential capital facilities, projects and certain equipment where it is appropriate to spread the cost of the project over more than one budget year and generally for a period not to exceed the useful life of the project being financed. In so doing, the City recognizes that future taxpayers who will benefit from the project will pay a share of its cost. Fixed rate debt provides the benefit of fixed payments during the life of the bonds and budget certainties for long-term capital planning. However, fixed rate debt is typically longer term and carries higher interest payments (assuming an upward sloping yield curve) than variable rate debt but is not subject to changes in interest rates. Fixed rate debt is the most common type of debt issued by the City.
B. Variable Rate Debt
The municipal bond market has developed several vehicles by which municipalities can borrow at short-term, variable interest rates. Variable Rate Demand Notes may be issued with interest rates that “reset” daily, weekly, monthly or semiannually at the option of the City. Commercial paper is issued with a maturity of up to 270 days at the City’s option. As the commercial paper matures, it is resold by a commercial paper dealer for another period up to 270 days.
These products are structured as a rolling series of short-term investments and therefore are priced at the short-end of the yield curve at lower interest rates than long-term fixed rate bonds (assuming an upward sloping yield curve). By accepting the risks inherent in variable interest rates, the City can take advantage of the lowest rates available in the current market.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 26 Factors that will be considered in the use of variable rate debt are the availability and size of fund balances to cover variable rate risk, and the budget flexibility of the program being financed. Programs with large complex capital programs may use short-term financing to fund uncertain construction cash flow requirements.
The short-term debt can be refinanced as fixed-rate, long term debt once the projects are complete. A project that must be carried in anticipation of grant funding may also be a candidate for the use of variable rate financing. Examples are the Electric, Water, and Wastewater enterprise funds.
C. Use of Alternative Debt Instruments
1. Derivative Products
The use of certain derivative products, such as swaps, swaptions and the sale of call options, allow the City to realize lower all-in costs on a new debt issuance or to receive an upfront payment. One type of swap that may be used would allow the City to issue variable rate debt in exchange for fixed payments that are typically lower than fixed rate debt. However, such products have unique risks that the City and its financial advisors will evaluate as per the City’s Swap Policy. The current Swap Policy is included in Appendix A.
VIII. DEBT MANAGEMENT PROCESS – DEBT CAPACITY
The determination of how much indebtedness the City can afford begins by assessing the sufficiency of future revenues. The amount of debt issued is based on the requirements of the approved 5-year CIP, subject to the condition that sufficient revenues are projected to be available. Factors such as debt service coverage requirements outlined in the bond indentures, the impact on the citizens (tax rates), and any impact on the bond ratings will be carefully considered. Different factors are considered for each type of credit. For example, Revenue or Certificates of Participation bonds for electric, water and wastewater bonds will consider the impact on customer utility bills. In the case of general obligation debt, State Statutes and the Constitution limit the amount of debt that a municipality can have outstanding.
IX. DEBT MANAGEMENT PROCESS – SECURITY OF DEBT
A. General Obligation (G.O.) Bonds
G.O. bonds are backed by the full-faith and credit of the City and are secured by secondary property taxes.
City of Roseville Financial Policies – Effective July 1, 2022 Return to Table of Contents 27 B. Revenue Bonds
Revenue bonds are supported solely from fees generated from specific Enterprise Funds. Accordingly, in order to preserve debt capacity and budget flexibility, the City will issue revenue bonds when an identifiable revenue stream can be dedicated to support the payment of debt service. The final maturity of revenue obligations will be determined by the expected life of the project to be financed and the revenues available to repay the debt. The City’s various Enterprise Funds – Electric, Water, and Wastewater issue bonds backed by revenues of the enterprise. Revenue bonds are generally issued through the Roseville Finance Authority.