San Fernando City Council
January 21, 2025

ANALYSIS:

A water and sewer utility rate study (“study”) is conducted to ensure that customer utility rates are set in such a way that supports the utility’s financial health, fairness in cost distribution, compliance with regulations, and effective infrastructure management. The study analyzes the cost structure of providing water and sewer services. It helps allocate costs fairly among different customer classes (residential, commercial, industrial, etc.), ensuring that each group pays its fair share based on their usage and the infrastructure they require. The study also identifies the current and future infrastructure needs of the utility and helps determine if there is sufficient revenue to fund capital improvement projects, such as upgrading water treatment plants, repairing sewer lines, or expanding capacity to meet growing demand. It is best management practices to review and update utility rate studies approximately every five (5) years.

With the approval of Proposition 218 (Prop 218) by California voters in 1996, all municipalities must adhere to specified limitations and procedures when considering how rates for water and sewer services are established. Prop 218 significantly impacted the process for water and sewer rate studies in California, requiring rates be based on the cost of providing the service, ensuring transparency and fairness in how rates are calculated and applied, and mandating public involvement and protest procedures with the aim of protecting ratepayers from unfair or excessive charges. A well-conducted rate study helps ensure that the utility is compliant with these requirements, making it both legally defensible and justifiable to the community. In order to ensure the City is fully compliant with Prop 218, it is recommended a consultant be retained to provide services to conduct a rate study for both water and sewer services.

Prior Rate Increases.

On November 18, 2019, a rate increase of eight percent (8%) for water and two percent (2%) for sewer services was approved by the City Council and became effective January 1, 2020. At that time the rates were increased to resolve deficits due to a significant loss of interest revenue; interest revenue had helped the Enterprise Fund remain solvent and offset the increase in water production expenses.

The justification for the rate increase was to avoid Water/Sewer fund operating deficits due to steadily rising costs to operate the City’s water system, primarily labor, equipment, and capital costs, as well as pass through charges from the City of Los Angeles Hyperion Reclamation Plant, which treats the City’s sewer systems.

Project Scope.

The project scope requests a firm to review the City’s current utility rates in order to: 1) identify the actual costs associated with operating and maintaining the City’s water and sewer system, 2) provide a cost estimate for achieving the goals and objectives of the Capital Improvement Program, 3) sustain all debt obligations and reasonable reserve requirements, 4) comply with all regulatory requirements, and 5) consider the financial impact to ratepayers.

January 21, 2025 Regular CC Mtg Page 214 of 518
Consideration to Award a Professional Services Agreement to Robert D. Niehaus, Inc. for Water and Sewer Utility Rate Study

The RFP requested the following:
• Analysis of water conservation initiatives (local and/or State mandated) • Assistance with tiered rate justification given recent court cases • Development of an alternative rate structure for low income/disabled customers • Development of an alternative rate structure to be imposed during droughts • Assistance with Proposition 218 compliance
• Rate comparison with similar public agencies
Proposals Received.

By the deadline, the City received three proposals. On December 18, 2024, a Selection Committee was formed to evaluate the proposals submitted to the City:

PRPOOSAL AMOUNT
Robert D. Niehaus Inc. $59,440
IB Consulting $131,949
Raftelis $75,075
On December 30, 2024, the Selection Committee interviewed all proposing consultants. Of the proposals received, the Selection Committee recommends the proposal submitted by Robert D.

Niehaus Inc. (Exhibit “B” to Attachment “A”). Robert D. Niehaus Inc. (“Firm”) has vast experience conducting numerous water and sewer rate studies for agencies of comparable scale. The Firm has proposed experienced staff members be assigned to the project and engaging directly with City staff to ensure the needs of the City are met and the project stays on schedule.

The recommended Firm’s proposal described a clear path to project completion, including major milestones, from project kickoff to Public Hearing Prop 218 requirements. The proposal includes 21 hours to help prepare and present Prop 218 Notices to council. The developed Prop 218 Notices will be printed and mailed out to customers by the City. A fifteen (15) percent contingency was added to the overall project cost to help cover any unforeseen items and/or additional Prop 218 outreach workshops, if necessary.

If the contract is awarded by the City Council, staff will work with the consultant to complete this project according to the following schedule:

DATE ACTION
January 2025 City Council Award of Contract
February - March 2025 Final Report Delivered to City Staff February - April 2025 Public Workshop Prop 218
June 2025 Prop 218 Hearing
January 21, 2025 Regular CC Mtg Page 215 of 518
Consideration to Award a Professional Services Agreement to Robert D. Niehaus, Inc. for Water and Sewer Utility Rate Study

BUDGET IMPACT:

Funds for this project are available within the Fiscal Year 2024-2025 Approved Budget.

Expenditures will be split between Water (Fund 070) and Sewer (Fund 072) Funds. There will be no impact to the Fiscal Year 2024-2025 General Fund.

CONCLUSION:

Staff recommends that the City Council award a contract to Robert D. Niehaus Inc. to conduct a Water and Sewer Utility Rate Study.

ATTACHMENTS:

A. Contract No. 2336, including:

Exhibit “A”: RFP for Water and Sewer Rate Study
Exhibit “B”: Robert D. Niehaus Inc. Proposal
January 21, 2025 Regular CC Mtg Page 216 of 518
ATTACHMENT “A”
CONTRACT NO. 2336
2025

PROFESSIONAL SERVICES AGREEMENT
(Parties: Robert D. Niehaus, Inc. and City of San Fernando) (Engagement: Water & Sewer Rate Study)

THIS PROFESSIONAL SERVICES AGREEMENT (hereinafter, “Agreement”) is made and entered into this 21st day of January, 2025 (hereinafter, the “Effective Date”) by and between the CITY OF SAN FERNANDO, a municipal corporation (hereinafter, “CITY”) and ROBERT D. NIEHAUS, INC. (hereinafter, “CONSULTANT”). For the purposes of this Agreement, CITY and CONSULTANT may be referred to collectively by the capitalized term “Parties.” The capitalized term “Party” may refer to CITY or CONSULTANT interchangeably, as appropriate.

RECITALS
WHEREAS, CITY requires a water and sewer rate study in support of the City’s proposed increase of it schedule of water and sewer rate fees and charges and as required to comply with Proposition 218; and
WHEREAS, CITY staff has determined that CONSULTANT possesses the experience, skills and training necessary to competently provide such tasks and services to CITY; and WHEREAS, this Agreement was approved by the City Council at its Regular Meeting of January 21, 2025, under Agenda Item No. 6.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSULTANT agree as follows:

I.

ENGAGEMENT TERMS

1.1 SCOPE OF WORK: Subject to the terms and conditions of this Agreement, CONSULTANT agrees to provide the tasks and services described in that certain Request for Proposals of CITY entitled “Water & Sewer Rate Utility Study” released October 31, 2024 (hereinafter, “CITY RFP”) and the written proposal of CONSULTANT entitled “City of San Fernando – Proposal for Water and Sewer Rate Study” dated December 5, 2024 (hereinafter, the “CONSULTANT Proposal”). The CITY RFP and the CONSULTANT Proposal are attached and incorporated hereto as Exhibit “A” and “B”, respectively. The term “Scope of Work” shall be a collective reference to the CITY RFP and the CONSULTANT Proposal. The capitalized term “Work” shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or January 21, 2025 Regular CC Mtg Page 217 of 518
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inconsistency between the provisions of the document entitled CITY RFP and the provisions of the document entitled CONSULTANT Proposal, the requirements of the document entitled CITY RFP shall govern and control but only to the extent of the conflict or inconsistency and no further. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.

1.2 PROSECUTION OF WORK:

A. Time is of the essence for this Agreement and each and every provision contained herein. The Work shall be commenced within seven (7) calendar days of CITY’s issuance of a written notice to proceed (“Notice to Proceed”). CONSULTANT shall complete the various tasks identified in the Scope of Work within the timeframes set forth in the Scope of Work and shall complete all of the Work by or before June 25, 2025 (the “Completion Date”). CONSULTANT may submit a written request for additional time to complete the Work, which request must be submitted to the CITY no later than fifteen (15) calendar days prior to the Completion Date or any extended Completion Date granted by CITY. The written request for additional time must identify (i) what specific tasks or services remain to be completed by CONSULTANT in order to complete the Work; (ii) how much additional time CONSULTANT requires; (iii) identification of the circumstances that have caused the need for additional time, according to CONSULTANT, including, if applicable, identification of any tasks that must be completed by CITY as prerequisite to CONSULTANT being able to complete any other service or task; and (iv) what proactive steps CONSULTANT has taken up to the date of the request to mitigate the need for additional time, including, if applicable, any effort on the part of CONSULTANT to alert CITY of the need to provide information or complete certain tasks to be performed by CITY. CITY in its sole and absolute discretion may grant, deny, or conditionally grant a request for additional time, provided that no individual grant of additional time may exceed a maximum of fifteen (15) calendar days.

B. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors, or agents.

C. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULTANT, or its subconsultants, to have related services or tasks completed in a timely manner.

D. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULTANT, or its subconsultants, to have related services or tasks completed in a timely manner.

E. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT’s employees.

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F. CONSULTANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.

1.3 COMPENSATION: CONSULTANT shall perform the Work in accordance with the fee schedule appearing page 10 of the CONSULTANT Proposal under the heading “Fee” (hereinafter, the “Compensation Schedule”). The foregoing notwithstanding, CONSULTANT’s total compensation for the performance of all Work contemplated under this Agreement, may not exceed the aggregate sum FIFTY-NINE THOUSAND FOUR HUNDRED AND FORTY DOLLARS ($59,440) (hereinafter, the “Not-to-Exceed Sum”) unless such added expenditure is first approved by the City Council. In the event CONSULTANT’s charges are projected to exceed the Not-to-Exceed Sum, CITY may suspend CONSULTANT’s performance pending CITY approval of any anticipated expenditures in excess of the Not-to-Exceed Sum or any other CITY approved amendment to the compensation terms of this Agreement.

1.4 PAYMENT OF COMPENSATION: The Not-to-Exceed Sum will be paid to CONSULTANT in monthly increments as the Work is completed. Following the conclusion of each calendar month, CONSULTANT will submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including services and tasks performed and the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT’s monthly compensation is a function of hours worked by CONSULTANT’s personnel, the invoice should indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, CITY will notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, CITY will pay all undisputed amounts included on the invoice. CITY will not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.

1.5 ACCOUNTING RECORDS: CONSULTANT will maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY will have the right to access and examine such records, without charge, during normal business hours. CITY will further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

1.6 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Services, CONSULTANT will deliver to CITY immediately and without delay, all materials, records, and other work product prepared or obtained by CONSULTANT in the performance of this Agreement. Furthermore, CONSULTANT will only be compensated for the reasonable value of the services, tasks January 21, 2025 Regular CC Mtg Page 219 of 518
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and other Work performed up to the time of cessation or abandonment, less a deduction for any damages, costs, or additional expenses which CITY may incur as a result of CONSULTANT’s cessation or abandonment.

II.

PERFORMANCE OF AGREEMENT

2.1 CITY’S REPRESENTATIVE: The CITY hereby designate the City Manager, Public Works Director and the Water Operations Manager (hereinafter, the “City Representatives”) to act as its representative for the performance of this Agreement. The City Representatives will act on behalf of the CITY for all purposes under this Agreement. CONSULTANT will not accept directions or orders from any person other than the City Representatives or their designee(s).

2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Project Manager Anthony Elowsky, Project Director Robert Niehaus and QA/QC Consultant Ichiko Kido to act as its representative for the performance of this Agreement (hereinafter, “Consultant Representatives”). The Consultant Representatives will have full authority to represent and act on behalf of the CONSULTANT for all purposes under this Agreement. The Consultant Representatives will supervise and direct the performance of the Work, using their best skill and attention, and will be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all Work under this Agreement. Notice to any one or more of the Consultant Representatives will constitute notice to CONSULTANT.

2.3 COORDINATION OF WORK; CONFORMANCE WITH REQUIREMENTS: CONSULTANT agrees to work closely with CITY staff in the performance of the Work and this Agreement and will be available to CITY staff and the City Representative at all reasonable times. All work prepared by CONSULTANT will be subject to inspection and approval by City Representative or his or her designees.

2.4 STANDARD OF CARE; PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges, and agrees to the following:

A. CONSULTANT will perform all Work skillfully, consistent with and adhering to its professional standard of care, that is, the degree of care and skill ordinarily exercised by members of the same profession currently practicing at the same time and in the same or similar locality;
B. CONSULTANT shall at all times employ such force, plant, materials, and tools as will be sufficient in the opinion of the CITY to perform the Work within the time limits established, and as provided herein. It is understood and agreed that said tools, equipment, apparatus, facilities, labor, and material shall be furnished and said Work performed and completed as required by the Agreement, and subject to the approval of the CITY’s authorized representative; January 21, 2025 Regular CC Mtg Page 220 of 518
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C. CONSULTANT will perform all Work in a manner reasonably satisfactory to the CITY;
D. CONSULTANT will comply with all applicable federal, state, and local laws and regulations, including the conflict of interest provisions of Government Code §1090 and the Political Reform Act (Government Code §§81000 et seq.) CONSULTANT shall be liable for all violations of such laws and regulations in connection CONSULTANT’s performance of the Work. If CONSULTANT performs any work knowing it to be contrary to such laws, rules and regulations, CONSULTANT shall be solely responsible for all costs arising therefrom; E. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance; F. All of CONSULTANT’s employees and agents possess sufficient skill, knowledge, training, and experience to perform those services and tasks assigned to them by CONSULTANT; and
G. All of CONSULTANT’s employees and agents (including, but not limited to, subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications, and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications, and approvals will be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.

The Parties acknowledge and agree that CONSULTANT will perform, at CONSULTANT’s own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT’s failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT’s employees, agents, contractors, subcontractors and subconsultants.

Such effort by CONSULTANT to correct any errors or omissions will be commenced immediately upon their discovery by either Party and, notwithstanding Section 5.2(B), will be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the City Representative in writing and in her sole and absolute discretion. The Parties acknowledge and agree that CITY’s acceptance of any work performed by CONSULTANT or on CONSULTANT’s behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand, and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge, and experience necessary to perform the Work under the standard of care as articulated under section 2.4(A).

2.5 ASSIGNMENT: The skills, training, knowledge, and experience of CONSULTANT are January 21, 2025 Regular CC Mtg Page 221 of 518
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material to CITY’s willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the performance of this Agreement. In recognition of this interest, CONSULTANT agrees that it will not assign or transfer, either directly or indirectly or by operation of law, this Agreement, or the performance of any of CONSULTANT’s duties or obligations under this Agreement, without the prior written consent of the CITY. In the absence of CITY’s prior written consent, any attempted assignment or transfer will be ineffective, null and void and will constitute a material breach of this Agreement.

2.6 SUBSTITUTION OF KEY PERSONNEL: Should one or more of the persons identified in the CONSULTANT Proposal on page 6 under the heading “Key Personnel” become unavailable, CONSULTANT may substitute other personnel of at least equal competence upon written approval of CITY. In the event that CITY and CONSULTANT cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Work in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the CONSULTANT at the request of the CITY.

2.7 CONTROL AND PAYMENT OF SUBORDINATES; INDEPENDENT CONTRACTOR: The Work will be performed by CONSULTANT or under CONSULTANT’s strict supervision.

CONSULTANT will determine the means, methods, and details of performing the Work subject to the requirements of this Agreement. CITY retains CONSULTANT on an independent contractor basis and not as an employee. CONSULTANT reserves the right to perform similar or different services for other principals during the term of this Agreement, provided such work does not unduly interfere with CONSULTANT’s competent and timely performance of the Work contemplated under this Agreement and provided the performance of such services and tasks does not result in the unauthorized disclosure of CITY’s confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULTANT are not employees of CITY and will at all times be under CONSULTANT’s exclusive direction and control.

CONSULTANT will pay all wages, salaries and other amounts due such personnel and will assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULTANT will be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers’ compensation insurance and the like. Notwithstanding any other CITY, state, or federal policy, rule, regulation, law, or ordinance to the contrary, CONSULTANT and any of its employees, agents, and subcontractors performing the Work under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by CITY, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of CITY and entitlement to any contribution to be paid by CITY for employer contributions and/or employee contributions for PERS benefits.

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2.8 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants is determined by the City Representative to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT’s officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant will be promptly removed by CONSULTANT and will not be reassigned to perform any of the Work.

2.9 COMPLIANCE WITH LAWS: CONSULTANT will keep itself informed of and in compliance with all applicable federal, state, or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT’s compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the U.S. Department of Housing and Urbanization.

2.10 NON-DISCRIMINATION: CONSULTANT represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination.

2.11 INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand, and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and will at all times remain, wholly independent contractors and are not officials, officers, employees, departments, or subdivisions of CITY. CONSULTANT will be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. CONSULTANT and all persons retained or employed by CONSULTANT will have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt, or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.

III.

INSURANCE

3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Before commencing the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULTANT will procure and maintain the following insurance coverage, at its own expense:

A. Commercial General Liability Insurance: CONSULTANT will procure and maintain Commercial General Liability Insurance (“CGL Coverage”) as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) January 21, 2025 Regular CC Mtg Page 223 of 518
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or its equivalent. Such CGL Coverage will have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.

B. Automobile Liability Insurance: For any owned, non-owned, or hired vehicles used in connection with the performance of this Agreement, CONSULTANT will procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance will have minimum limits of no less than Two Million Dollars ($2,000,000.00) per accident for bodily injury and property damage.

C. Workers’ Compensation Insurance/ Employer’s Liability Insurance: A policy of workers’ compensation insurance in such amount as will fully comply with the laws of the State of California and which will indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Work contemplated in this Agreement.

D. Errors & Omissions Insurance: For the full term of this Agreement and for a period of three (3) years thereafter, CONSULTANT will procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT’s profession. Such coverage will have minimum limits of no less than Two Million Dollars ($2,000,000.00) per claim.

3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance will contain an endorsement naming the CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers as additional insureds.

3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement will be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance will be procured from insurers who, according to the latest edition of the Best’s Insurance Guide, have an A.M. Best’s rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor’s rating of no less than BBB according to the latest published edition the Standard & Poor’s rating guide. As to Workers’ Compensation Insurance/ Employer’s Liability Insurance, the CITY Representative is authorized to authorize lower ratings than those set forth in this Section.

3.4 PRIMACY OF CONSULTANT’S INSURANCE: All policies of insurance provided by CONSULTANT will be primary to any coverage available to CITY or CITY’s elected or appointed officials, officers, employees, agents, or volunteers. Any insurance or selfJanuary 21, 2025 Regular CC Mtg Page 224 of 518 PROFESSIONAL SERVICES AGREEMENT CONTRACT NO. 2336
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insurance maintained by CITY or CITY’s elected or appointed officials, officers, employees, agents, or volunteers will be in excess of CONSULTANT’s insurance and will not contribute with it.

3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement will not prohibit CONSULTANT or CONSULTANT’s officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss.

CONSULTANT hereby waives all rights of subrogation against CITY, its officials, officers, employees, agents, and volunteers.

3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands, and agrees, that CITY’s ability to verify the procurement and maintenance of the insurance required under this Article is a material consideration of this Agreement. Accordingly, CONSULTANT warrants, represents, and agrees that it will furnish CITY with certificates of insurance and endorsements evidencing the coverage required under this Article on ACORD-25 or forms satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy will be signed by a person authorized by that insurer to bind coverage on its behalf and will be on forms provided by the CITY if requested. Before commencing the Work, CONSULTANT shall provide CITY with all certificates of insurance and endorsements referenced herein. Upon CITY’s written request, CONSULTANT will also provide CITY with copies of all required insurance policies and endorsements.

3.7 FAILURE TO MAINTAIN COVERAGE: In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement effective upon notice.

3.8 SPECIAL RISKS OR CIRCUMSTANCES: City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Any amendment to the insurance requirements of this Article shall be memorialized and approved in the form of a written amendment to this Agreement, signed by the Parties. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void or invalid.

IV.

INDEMNIFICATION
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4.1 CITY’s elected and appointed officials, officers, employees, agents, and volunteers (hereinafter, the “ City Indemnitees”) should, to the fullest extent permitted by law, be protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs caused by the negligent performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law. CONSULTANT acknowledges that CITY would not enter into this Agreement in the absence of CONSULTANT’s commitment to indemnify, defend and protect CITY as set forth herein Notwithstanding the foregoing, to the extent CONSULTANT’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that caused by the negligence, recklessness, or willful misconduct of the CONSULTANT. CONSULTANT’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the CITY, its officials, officers, employees, agents, or volunteers.

4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold harmless and defend the CITY Indemnitees from and against any liability, loss, damage, expense, cost (including without limitation reasonable attorneys’ fees, expert fees and all other costs, and fees of litigation) in connection with CONSULTANT’s negligent performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the CITY.

4.3 CITY shall have the right to offset against the amount of any compensation due to CONSULTANT under this Agreement, any amount due to CITY from CONSULTANT as a result of CONSULTANT’s failure to either pay CITY promptly for any costs associated with CONSULTANT’s obligations to indemnify the CITY Indemnitees under this Article or related to CONSULTANT’s failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

4.4 The obligations of CONSULTANT under this Article will not be limited by the provisions of any workers’ compensation act or similar act. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers.

4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. In the event CONSULTANT fails to obtain such indemnity obligations from others as required herein, CONSULTANT agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY’s elected and appointed officials, officers, employees, agents, and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONSULTANT’s subcontractors or any other person January 21, 2025 Regular CC Mtg Page 226 of 518
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or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of CITY’s choice.

4.6 CITY does not and shall not waive any rights that it may possess against CONSULTANT because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense.

4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend, and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.

V.

TERMINATION

5.1 TERMINATION WITHOUT CAUSE: CITY may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of CITY’s intent to terminate this Agreement which notice shall specify the effective date of such termination. Upon such termination for convenience, CONSULTANT will be compensated only for those services and tasks which have been performed by CONSULTANT up to the effective date of the termination. CONSULTANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in section 6.1 below, and other information of any kind prepared by CONSULTANT in connection with the performance of the Work.

CONSULTANT will be required to provide such Documents and Data within fifteen (15) calendar days of CITY’s written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, will operate to prohibit or otherwise restrict CITY’s ability to terminate this Agreement for convenience as provided under this Section.

5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:

A. In the event either Party fails to perform any duty, obligation, service, or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service, or task set forth under this Agreement), an event of default (hereinafter, “Event of Default”) will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to the defaulting Party (hereinafter referred to as a “Default Notice”) which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 5.2B and 5.2C below or if a cure is January 21, 2025 Regular CC Mtg Page 227 of 518
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not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.

B. CONSULTANT will cure the following Events of Defaults within the following time periods:
i. Within ten (10) business days of CITY’s issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY’s employees or agents with any information and/or written reports, documentation, or work product which CONSULTANT is obligated to provide to CITY or CITY’s employees or agents under this Agreement. Prior to the expiration of the 10-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 10-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.i. that exceeds seven (7) calendar days from the end of the initial 10-day cure period; or ii. Within fourteen (14) calendar days of CITY’s issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days from the end of the initial 14-day cure period.

In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULTANT will include, but will not be limited to the following: (i) CONSULTANT’s refusal or failure to perform any of the services or tasks called for under the Scope of Work; (ii) CONSULTANT’s failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT’s and/or its employees’ disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; and/or (v) CITY’s discovery that a statement representation or warranty by CONSULTANT relating to this Agreement is false, January 21, 2025 Regular CC Mtg Page 228 of 518
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misleading or erroneous in any material respect.

C. CITY will cure any Event of Default asserted by CONSULTANT within forty-five (45) calendar days of CONSULTANT’s issuance of a Default Notice unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY’s failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.5, above, will be cured by CITY within five (5) calendar days from the date of CONSULTANT’s Default Notice to CITY.

D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT’s performance under this Agreement pending CONSULTANT’s cure of any Event of Default by giving CONSULTANT written notice of CITY’s intent to suspend CONSULTANT’s performance (hereinafter, a “Suspension Notice”). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULTANT will be compensated only for those services and tasks which have been rendered by CONSULTANT to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY will operate to prohibit or otherwise restrict CITY’s ability to suspend this Agreement as provided herein.

E. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation of any duties, obligations, rights, and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
i. Upon written notice to CONSULTANT, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONSULTANT, the CITY may extend the time of performance;
iii. The CITY may proceed by appropriate court action to enforce the terms of the January 21, 2025 Regular CC Mtg Page 229 of 518
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Agreement to recover damages for CONSULTANT’s breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.

CONSULTANT will be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY’s exercise of its remedies under this Agreement.

G. In the event CITY is in breach of this Agreement, CONSULTANT’s sole remedy will be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULTANT under this Agreement for completed services and tasks.

5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement will constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty, or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.

5.4 SURVIVING ARTICLES, SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto will not operate to terminate any Article, Section or provision contained herein which provides that it will survive the termination or normal expiration of this Agreement.

VI.

MISCELLANEOUS PROVISIONS

6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data will be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term “Documents and Data” means and includes all reports, analyses, correspondence, plans, designs, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data.

CONSULTANT will require all subcontractors and subconsultants working on behalf of CONSULTANT in the performance of this Agreement to agree in writing that CITY will be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement.

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6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULTANT or provided for performance of this Agreement are deemed confidential and will not be disclosed by CONSULTANT without prior written consent by CITY. CITY will grant such consent of disclosure as legally required. Upon request, all CITY data will be returned to CITY upon the termination or expiration of this Agreement.

CONSULTANT will not use CITY’s name or insignia, photographs, or any publicity pertaining to the Work in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.

6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULTANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., §§3789 et seq. and the California False Claims Act, Government Code §§12650 et seq.

6.4 NOTICES: All notices permitted or required under this Agreement will be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:

CONSULTANT: CITY:

Robert D. Niehaus, Inc.
140 E. Carrillo Street
Santa Barbara, CA 93101
Attn: Project Manager
City of San Fernando
Public Works Department
117 Macneil Street
San Fernando, CA 91340
Attn: Public Works Director
Such notices will be deemed effective when personally delivered or successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, fortyeight (48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.

6.5 COOPERATION; FURTHER ACTS: The Parties will fully cooperate with one another and will take any additional acts or sign any additional documents as are reasonably necessary, appropriate, or convenient to achieve the purposes of this Agreement.

6.6 SUBCONTRACTING: CONSULTANT will not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, will contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.

6.7 CITY’S RIGHT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other independent contractors in connection with the various projects worked upon by CONSULTANT.

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6.8 CONFLICTS OF INTEREST:

A. CONSULTANT warrants, represents, and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement. Further, CONSULTANT warrants and represents that it has not paid, nor has it agreed to pay, any company or person, other than a bona fide employee working solely for CONSULTANT, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY will have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of CITY, during the term of his or her service with CITY, will have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

B. CONSULTANT may serve other clients, but none whose activities within the corporate limits of CITY or whose business, regardless of location, would place CONSULTANT in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code §81000 et seq.

C. CONSULTANT shall not employ any official or employee of the CITY during the Term of this Agreement or any extension term. No officer or employee of CITY shall have any financial interest in this Agreement that would violate Government Code §§1090 et seq. CONSULTANT warrants and represents that no owner, principal, partner, officer, or employee of CONSULTANT is or has been an official, officer, employee, agent, or appointee of the CITY within the twelve-month period of time immediately preceding the Effective Date. If an owner, principal, partner, officer, employee, agent, or appointee of CONSULTANT was an official, officer, employee, agent, or appointee of the CITY within the twelve-month period immediately preceding the Effective Date, CONSULTANT warrants that any such individuals did not participate in any manner in the forming of this Agreement. CONTRACTOR understands that, if this Agreement is made in violation of Government Code §1090 et seq., the entire Agreement is void and CONSULTANT will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and CONSULTANT will be required to reimburse the CITY for any sums paid to CONSULTANT.

CONSULTANT understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code §1090.

6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.

6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, will be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such January 21, 2025 Regular CC Mtg Page 232 of 518
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litigation be tried exclusively in federal court, venue, without exception, will be in the Central District of California located in the City of Los Angeles, California.

6.11 ATTORNEYS’ FEES: If either Party commences an action against the other Party, legal, administrative, or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation will be entitled to have and recover from the losing Party reasonable attorneys’ fees and all other costs of such action.

6.12 SUCCESSORS AND ASSIGNS: This Agreement will be binding on the successors and assigns of the Parties.

6.13 NO THIRD-PARTY BENEFIT: There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.

6.14 CONSTRUCTION OF AGREEMENT: This Agreement will not be construed in favor of, or against, either Party but will be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.

6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions will continue in full force and effect.

6.16 AMENDMENT; MODIFICATION: No amendment, modification or supplement of this Agreement will be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver will be void and invalid.

6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement will control.

6.19 ENTIRE AGREEMENT: This Agreement, including all attached exhibits, constitutes the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all other agreements or understandings, whether oral or written, which may have been entered into between CITY and CONSULTANT prior to the execution of this Agreement. Any statements, representations, or other agreements, whether oral or written, made by either Party that is not embodied herein will not be valid or binding on the Parties. No amendment, modification or supplement to this Agreement will be valid and binding unless in writing and duly executed by the Parties January 21, 2025 Regular CC Mtg Page 233 of 518
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pursuant to Section 6.16, above.

6.20 FORCE MAJEURE: The Completion Date for completing the Work may be extended in the event of any delays due to unforeseeable causes beyond the control of CONSULTANT and without the fault or negligence of CONSULTANT, including but not limited to severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the CITY. CONSULTANT shall within three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The City Representative shall ascertain the facts and the extent of delay and extend the time for performing the services and tasks for the period of the enforced delay when and if in the judgment of the CITY Representative such delay is justified. The CITY Representative’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall CONSULTANT be entitled to recover damages against the CITY for any delay in the performance of this Agreement, however caused, CONSULTANT’s sole remedy being extension of the Agreement pursuant to this Section.

6.21 COUNTERPARTS: This Agreement will be executed in three (3) original counterparts each of which will be of equal force and effect. No handwritten or typewritten amendment, modification, or supplement to any one counterpart will be valid or binding unless made to all three counterparts in conformity with Section 6.16, above. One fully executed original counterpart will be delivered to CONSULTANT and the remaining two original counterparts will be retained by CITY.
(SIGNATURES ON NEXT PAGE)
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.

CITY OF SAN FERNANDO: ROBERT D. NIEHAUS, INC:

By: By:

Nick Kimball, City Manager
Name:

Date:

Title:

APPROVED AS TO FORM Date:

By:

Richard Padilla, City Attorney
Date:

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NOTICE INVITING BIDS
Notice is hereby given that sealed proposals will be received by the City of San Fernando, California, for furnishing the following:

WATER & SEWER UTILITY RATE STUDY
in strict accordance with the Specifications on file in the office of the SAN FERNANDO PUBLIC WORKS DEPARTMENT, 117 Macneil Street, San Fernando, California, 91340.

Copies of specifications and proposal documents may be obtained from the City’s website.

Three original copies and one electronic copy of the proposal must be submitted to the CITY CLERK DEPARTMENT in a sealed envelope at CITY HALL, 117 Macneil Street, San Fernando, California, 91340, not later than 5:30 p.m. on Thursday, December 5, 2024. Original copy, proposals will be accepted via USPS mail and must be received prior to the deadline indicated above. Any bidder may withdraw their proposal, without obligation, at any time prior to the scheduled closing time for receipt of proposals. A withdrawal will not be effective unless made personally or by telephonic notification received prior to the closing date. Proposals may later be referred to the City Council for appropriate action. The City reserves the right to reject any or all proposals as the best interests of the City may dictate.

By: _____________________________
Julia Fritz, City Clerk
Published in The San Fernando Sun on October 31, 2024
CONTRACT NO. 2336
EXHIBIT "A"
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REQUEST FOR PROPOSALS
The Public Works Department is requesting proposals for:

Water & Sewer Rate Study
RELEASE DATE: October 31, 2024
RESPONSE DUE: December 5, 2024
CONTRACT NO. 2336
EXHIBIT "A"
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117 Macneil Street
San Fernando, CA 91340
SUBJECT: REQUEST FOR PROPOSAL – RATE STUDY FOR WATER & SEWER

UTILITY SERVICES
The City of San Fernando is inviting proposals from professional consulting firms to prepare a Comprehensive Rate Study for the City’s Water and Sewer Utility Services (“Study”). The Study will help to ensure that utility rates for services provided to different classes of customers adequately fund current and future operations, system maintenance and system capital improvements.

The following project timeline is included for this project:
• RFP Released: October 31, 2024
• Questions Due: November 12, 2024
• Answers Posted: November 20, 2024
• Proposals Due: December 5, 2024
• Award: January 6, 2025
• Project Due: February 24, 2025
Proposals are due on December 5, 2024 at 5:30 p.m. Please submit three (3) electronic and one original of the proposal to the City of San Fernando, City Clerk Department at 117 Macneil, San Fernando, CA 91340.

Should you have any questions, please contact the Public Works Department at (818) 898-1222.

Sincerely,
Wendell Johnson, P.E.

Director of Public Works
CONTRACT NO. 2336
EXHIBIT "A"
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CITY OF SAN FERNANDO

PUBLIC WORKS/ENGINEERING DIVISION

REQUEST FOR PROPOSALS FOR PROFESSIONAL CONSULTING SERVICES

INTRODUCTION
The City of San Fernando (“City”) is requesting proposals from professional consulting firms (“Consultant”) to prepare a comprehensive Rate Study for the City’s Water and Sewer Utility Services (“Study”). The City is approximately 2.4 square miles and is completely surrounded by the City of Los Angeles, including the nearby communities of Sylmar, Mission Hills and Pacoima. The City obtains its groundwater supply from the Sylmar Groundwater Basin (“Basin”). The Basin is located in the San Fernando Valley and underlies the City of San Fernando and the City of Los Angeles. In addition, the City operates its local wastewater collection system including operations, maintenance and improvement to local sewer main lines and manholes. Wastewater is conveyed to the City of Los Angeles for treatment and disposal services.

Water System
The water system supplies water to the residents of the entire City of San Fernando. The City currently serves an estimated population of 23,946 people through 5,326 service connections. Service connections consist of the following: 3987 Single Family Residential, 471 Multi-Family Residential, 443 Commercial, 48 Churches, 15 County Facilities, 70 City Owned, 20 Schools, 163 Industrial, 61 Irrigation, 0 Agricultural, 48 Inactive Water Accounts,.

The City has 2 sources of water; 1) groundwater from the Sylmar Groundwater Basin, and 2) imported purchased water from Metropolitan Water District of Southern California connection SF-1. MWD SF-1 is a backup source of supply, will be active, and utilized when groundwater production from the wells cannot meet the daily demand or water from wells are not available during major maintenance. The City also plans to provide water to some of its large customers on a selective basis through direct service connection from MWD supply that are separate from the groundwater system.

In addition, there are 1- 6” inch and 1- 10” emergency connections with the City of Los Angeles Department of Water and Power to help meet local demand during emergencies.

The City’s water system consists of approximately 66.5 miles of various size (2”-20”) water main lines that deliver water to approximately 5,326 customer accounts. The water main lines are constructed of steel, cast iron, ductile iron and asbestos cement pipe and range in age from the 1920’s to 2016’s.

The City’s Water Division consists of ten (10) full time equivalent positions. Additional support and administration, including project delivery and utility billing functions consists of two (2) full time equivalent positions. The Division oversees all system production, CONTRACT NO. 2336
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distribution and customer service operations. System capital improvements are bid in accordance with the Public Contracts Code and are typically coordinated with other improvements (street, sewer, etc.) in order to realize economies of scale and minimize impacts to the community.

The City currently has four (4) active wells that it utilizes in water production activities, of which two (2) are currently going through a ION Exchange Treatment Plant for Nitrate removal, active Well #3 and active Well #7A. The City’s water system has two (2) Ion Exchange (IX) water treatment plants (Plant No.1 and Plant No. 2) for Nitrate removal.

There are (3) three onsite Sodium Hypochlorite Generation Units for disinfecting the groundwater produced. The City has 2 booster pump stations (Arroyo and Hubbard) Booster stations in the distribution system to transmit potable water from the Lower to the Upper pressure zone.

Construction will soon begin to add Well 2a to the treatment plant for Nitrate removal. A nitrate blending/treatment plant for Well #2A is in the planning stages.

The four (4) well location include the following production capabilities:
• Well 2A (2,000 Gallons Per Minute);
• Well 3 (1,200 GPM);
• Well 4A (450 GPM); and
• Well 7A (900 GPM).

Additionally, the City has four (4) local reservoirs that are used for water storage. 3 of the 4 locations are currently active. The fourth (4th) 1.1 - MG reservoir is being constructed and anticipated to be in operation by 4th Quarter of 2024 The four (4) reservoirs include the following storage capacities:
• Reservoir 2A (3 Million Gallons);
• Reservoir 5 (2.4 MG);
• Reservoir 3A (2.5 MG); and
• Reservoir 4A (1.1 MG)
Due to recent water conservation actions, local groundwater sources in the Sylmar Basin have provided adequate supplies for the San Fernando community. The City’s 2020 Urban Water Management Plan is included in Attachment “A” and provides related water consumption, supply and reliability planning efforts. Information on current and future water system capital improvements is included in Attachment “B”.

Sewer System
The City’s wastewater collection system consists of approximately 40 miles of sewer main lines that serve approximately 5,326 customer accounts. The City’s Public Works Division consists of two (2) full time equivalent positions. Additional support and administration, including project delivery and utility billing consists of one (1) full time CONTRACT NO. 2336
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equivalent position. The Division oversees all system maintenance functions, while some functions (annual cleaning, inspections, lining, point repairs, etc.) are performed by contract services staff. System capital improvements are bid in accordance with the Public Contracts Code and are typically coordinated with other improvements (street, sewer, etc. in order to realize economies of scale and minimize impacts to the community).

The City’s 2014 Sewer System Master Plan is included as Attachment “C” and provides system information, land use data, and recommended system improvements. Since this plan was developed, the City has completed a system-wide cleaning and televised inspection of the waste water system to verify needed rehabilitation work. Flow monitor data conducted in 2024 is included as Attachment “D”.

In addition, the Water and Sewer Divisions share a fleet of vehicles and equipment (Attachment E & F) necessary for daily operations which are replaced based on a designated replacement schedule. Maintenance is provided by the Equipment Maintenance Division who maintains and repairs all City vehicles and costs are funded by the Equipment Maintenance and Replacement Fund.

BACKGROUND/GOALS
The City’s last Comprehensive Rate Study for the City’s Water and Sewer Utility Services was prepared in late 2017 and adopted in 2019 and is included as Attachment H. In preparation of an updated study, it is imperative for the City to ensure that the following elements are considered: the rising costs of providing services, the City’s need to continually improve utility system infrastructure and provide reliable services, and the need to maintain adequate reserves for the utility system. The new Study should also be fair, reasonable and financially affordable for customers.

SCOPE OF SERVICES
The following is a general outline of the scope of work expected to be provided by the consultant. The consulting services desired include, but are not limited to, evaluation of the previous study, current maintenance and operations cost requirements, economic analysis for operations, maintenance and capital requirements, and rate structure development. While it is intended that the following scope of work will include all essential elements listed above, those submitting proposals are advised to include any items which they feel have been overlooked. Those submitting proposals may also note any required items which they feel to be excessive or unnecessary. The description and cost of such items should be noted separately in the proposal. Services required by the consultant shall include:

Long Range Financial Forecast
• Develop pro-forma cash flow and budget projections for five-year period, July 1, 2025 through June 30, 2030. Work with City representatives to include relevant CONTRACT NO. 2336
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assumptions (operational functions, planned capital improvements, etc.) in financial model. Model cash flow/budgets at alternative rate increase levels. • Determine optimal funding needs for anticipated capital improvements and appropriate fund reserves, based on industry best practices. • Provide an additional, broad, five-year projection beginning July 1, 2025 through June 30, 2030 utilizing proposed rates while assuming corresponding customer account growth and no rate increase for that five year period.

Rate Study
• Review and analyze current water consumption, water sales, customer service levels (i.e. meter sizes) and operational activities/expenses; • Evaluate the effect of water conservation measures on revenues; an average of

7.8% reduction during 2022 & 2023
• Conduct a comprehensive review of the City’s existing rate structure and if necessary, recommend improvements, including modifications that encourage conservation and/or funding conservation programs;
• Develop a cost of services study for City utility operations that comply with Proposition 218;
• Develop a consistent and objective fee structure that meets the needs of the City, customers and State guidelines;
• Utilize the City’s overhead cost allocation plan and model to incorporate adequate overhead costs into the fee structure;
• Review City documents (master plan studies) and interview City staff members to document planned capital improvements and operations/maintenance costs, both for existing and anticipated future infrastructure needs including the recently added ION Exchange Treatment Plant cost associated with providing clean safe potable water to the community of San Fernando. Integrate these items into pro-forma budgets;
• Develop a structure for fixed/variable costs into base utility rates and consumptionbased rates; • Review and develop rate structure for incorporating the cost of purchasing water from other water agencies; and suppling water to high end users that may need to utilize MWD water as a supplemental source of supply to meet their required demand
• Develop alternative rate structure/tier for low income and disabled customers • Develop alternative rate structure/ penalties to be imposed during State declared drought
• Provide billing samples using proposed charges for each class and tier of customer noting the changes each class may expect;
• Compare existing and proposed City rate structure to up to five (5) other public agencies, as determined by the City;
• Provide implementation strategies to reduce adverse impacts on customer service levels/groups;
• Evaluate and provide recommendations relative to the City’s wastewater agreement for treatment services with the City of Los Angeles including an analysis CONTRACT NO. 2336
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of fees charged related to wastewater conveyance/treatment and recommended improvements to improve billing accuracy and budgeting estimates.

Public Outreach/Proposition 218 Assistance
• Develop and provide public outreach materials (flyers, handouts, mailers, etc.) to communicate information and messaging to the public;
• Provide assistance with Proposition 218 complaint public notifications..

Reports/Public Meetings
• Attend at least four (4) public meetings including public workshops, to review rate study findings and rate alternatives, and assist with required Proposition 218 public meetings.
• Prepare a Preliminary Rate Analysis Report for review by City staff members; • Prepare a Final Rate Analysis Report for review by the City Council and members of the public.

The Consultant will provide up to ten (10) copies of the final report to the City.

PROPOSAL FORMAT
The proposal shall be submitted in the following format:

1. Executive Summary Provide an executive summary emphasizing the firm’s strengths, qualifications and relevant experience signed by a representative with official of authority to bind the contract. The executive summary shall also contain the name, address, telephone number, title and signature of the firm’s contact person for this proposal. Be sure to include to declare that the submittal is valid for 90 days.

2. Key Personnel Provide an organizational chart displaying the names and responsibilities of key personnel. Be sure to include the Principal-in-Charge (one who will have the ultimate authority to bind the contract), Senior Staff Members and any other additional support staff you wish to list that will be a contributing member of the project. Personnel involved in preparing the Study must have the necessary background, experience and qualifications to complete the project. The City reserves the right to request the consultant to replace staff members assigned to the contract should the City consider such a replacement to be necessary and in the best interest of the City. There can be no change of key personnel once the proposal is submitted, without prior approval of City.

3. Fee Provide a fee schedule based on the Scope of Services including an itemized breakdown of each task to be performed by the consultant or sub-consultant. The schedule should also outline all individual team members, the hourly billable rates and the hours allocated to the project based on their contribution per the Scope of Services provided by the consultant. Compensation will be based on the submitted CONTRACT NO. 2336
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fee schedule including reimbursable expenses if applicable and authorized by the Director of Public Works.

4. Work Schedule Provide a work schedule with benchmark dates and completion date

5. Qualifications Provide your firm’s qualifications and experience

6. References Provide at least three public agency references with whom the firm has provided similar services to

7. Insurance Provide a copy of the firm’s current insurance certificate

SELECTION PROCEDURE AND SCHEDULE
An award of this contract shall be based on a best value basis.

Tentative Schedule:

1. Question Submittals Due By: November 12, 2024

2. Question Responses Posted: November 20, 2024

3. Proposals Due By: December 5, 2024

4. Interviews (if necessary): Week of Dec. 9, 2024

5. Contract Negotiations: Week of Dec. 16, 2024

6. Contract Award: January 6, 2025

7. Final Report submitted to the City February 24, 2025 Screening and selection will take place through the process described below. Contract award will be made to the Consultant which (a) demonstrates the best combination of qualifications, experience and key personnel, and (b) submits the proposal considered most advantageous to City based on Evaluation Criteria set forth below. • Technical Ability
• Understanding of Scope of Services
• Rate Structure/Cost Information
• Organization Qualifications, Experience, Personnel
• References
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• Additional Value Provided to the City
Negotiations may or may not be conducted with Consultant; hence, the proposal should include the Consultant’s most favorable terms and conditions since selection may be made without discussion with any Consultant.

The screening and selection process shall be as follows:

Step 1. Sealed proposals will be opened and evaluated to determine if the Consultant demonstrates appropriate qualifications to provide the scope of services. Responsive proposals will be included in Step 2.

Step 2. Responsive proposals will be reviewed by an evaluation panel based on Evaluation Criteria listed above. Weighted scores from all panel members will then be added and a total value will be calculated and assigned to each proposal. Following such evaluation, a decision will be made whether to recommend awarding a contract without further discussion to the Consultant receiving the highest score, or to negotiate with Consultants within a competitive range.

Step 3. If a decision is made to conduct negotiations, Consultants within a competitive range may be interviewed early part of October, 2024. The purpose of such interviews will be to obtain additional information or clarification of Consultant’s proposals and to discuss modifications of such proposals. At a minimum, the proposed Project Manager and a Senior Management staff official authorized to commit on behalf of the Consultant shall be present at such interview.

Upon completion of such interviews, the City reserves the right to request the submission of “Best and Final” offers. The evaluation panel shall review “Best and Final” offers, if requested, and conduct a final evaluation of proposals. The evaluation panel will then recommend one Consultant for an award of contract.

LIST OF DOCUMENTS
This is a list of documents attached for your information:

A. 2020 Urban Water Management Plan
B. Utility Infrastructure Capital Improvement Schedule
C. 2022 Sewer System Management Plan
D. 2023 Flow Monitor Data
E. Vehicle equipment list
F. Small equipment list
G. 2024-2025 Budget
H. 2019 Rate Analysis
I. City Utility Rate Schedule
J. Annual Comprehensive Financial Report
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DISCRETION AND LIABILITY WAIVER
The City expressly reserves the right to reject all proposals or to request and obtain, from one or more of the consulting firms submitting proposals, supplementary information as may be necessary for City staff to analyze the proposals pursuant to the consultant selection criteria contained here. The distribution of this RFP does not bind the City to award an agreement.

The City is not liable for any expenses incurred by the consultant prior to the issuance of any formal notice to proceed. The consultant, by submitting a response to this RFP, waives all rights to protest or seek any legal remedies whatsoever regarding any aspect of this RFP.

All proposals shall be binding for a period of 60 days after the proposal due date.

DIRECTION FOR DELIVERY OF PROPOSAL
Three (3) hard copies and (1) one electronic copy of the sealed project proposal shall be delivered no later than 5:30 p.m., December 5, 2024 at the following location:

CITY OF SAN FERNANDO
City Clerk Department
117 Macneil Street
San Fernando, CA 91340
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Robert D. Niehaus, Inc.

City of San Fernando
Proposal for Water and Sewer Rate Study
December 5, 2024
Submitted By:

Robert D. Niehaus, Inc.
140 East Carrillo Street
Santa Barbara, CA 93101
Authorized Representative: Jack Lyon
Title: Director of Business Development
Email: [email protected]
Phone: 805.618.1356
Submitted To:

ATTN: City Clerk Department
117 Macneil Street
San Fernando, CA 91340
Attn: Julia Fritz
Title: City Clerk
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December 5, 2024
Wendell Johnson, P.E. Jack Lyon, Director of Business Development Director of Public Works Phone: (805) 962-0611
City of San Fernando Robert D. Niehaus, Inc.
117 Macneil Street 140 E. Carrillo St.

San Fernando, CA 91340 Santa Barbara, CA 93101
Email: [email protected]
Subject: Proposal for Water and Sewer Rate Study
Dear Mr. Johnson and City of San Fernando,
Robert D. Niehaus, Inc. (RDN) is pleased to submit our proposal for the City of San Fernando (City) Water and Sewer Rate Study (Study). RDN is an economic and financial consultancy celebrating 40 years of consulting in Santa Barbara and over 1,000 successful projects. We have assisted over 42 agencies in Southern California, including Santa Clarita Valley Water Agency, Palmdale Water District, the City of Lynwood, the City of Alhambra, Quartz Hill Water District, and the Los Angeles Department of Water and Power, among others.

Dr. Robert Niehaus, with more than 40 years of consulting experience, will be the Project Director. He will be responsible for the overall Study accountability and to ensure the timely, on-budget, and successful project.

Anthony Elowsky, with seven years of rate setting experience, will serve as Project Manager and will be responsible for the thorough and efficient execution of the project. Ichiko Kido, as QA/QC Consultant, brings more than 15 years of experience in financial analysis and has worked with several agencies to build comprehensive financial plans and rate structures. In addition, our team includes several highly skilled and qualified consultants to conduct analyses and prepare deliverables for the project. RDN has 16 additional consultants based in Santa Barbara to support the City as needed.

Please coordinate with Jack Lyon, Director of Business Development, 805.618.1356, [email protected], if you would like to discuss our proposal, which is valid for a 90-day period. Jack is authorized to clarify our proposal, negotiate, and obligate the firm. As requested in the RFP, the detailed scope of services is included in this proposal’s appendix. We look forward to a successful, collaborative, and productive partnership.

Respectfully submitted,
Robert D. Niehaus, Ph.D. Jack Lyon (authorized to bind and negotiate) Managing Director, Principal Economist Director of Business Development CONTRACT NO. 2336
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TABLE OF CONTENTS
Key Personnel................................................................................................................................................6 Fee ..............................................................................................................................................................10 Work Schedule.............................................................................................................................................11 Qualifications ..............................................................................................................................................12 References...................................................................................................................................................15 Insurance.....................................................................................................................................................17 Appendix .....................................................................................................................................................18 Scope of Services..................................................................................................................................................18 Task 1. Long Range Financial Forecast .......................................................................................................18 Task 2. Rate Study ......................................................................................................................................20 Task 3. Public Outreach/Proposition 218 Assistance .................................................................................23 Task 4. Reports and Public Meetings..........................................................................................................24 CONTRACT NO. 2336
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KEY PERSONNEL
Figure 1 presents RDN’s proposed project team for the City’s rate study. The following three pages include onepage resumes for key personnel.

Figure 1. Team RDN Project Organization, Key Personnel
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Robert D. Niehaus, Ph. D. – Project Director

OVERVIEW & BIOGRAPHY
Dr. Niehaus is widely recognized for his expertise in the economics of water resources and the environment. He has broad experience managing public and private sector water and land resource economic analyses and planning efforts, with expertise in water and wastewater fee and rate analysis, cost-benefit evaluations, water demand econometric modeling and forecasting, and regional economics. His expertise extends to river basin planning, groundwater management, economic impacts of water and other resource-use projects, military base realignment, housing, energy, and global climate change. He has provided expert support to senior civilian and military decision-makers for numerous projects. Dr. Niehaus has published a wide range of applied studies in these fields and has directed the successful completion of projects at more than 200 locations worldwide, with much of this experience in Southern California.

RELEVANT PROJECT EXPERIENCE
City of Alhambra, Water Rate Study
Costa Mesa Sanitary District, Wastewater Rate Study
Rosamond Community Services District, Water and Wastewater Rate Studies Napa County, Water and Wastewater Rate Studies
Lake Arrowhead Community Services District, Water & Wastewater Rate Study California City, Water and & Sewer Impact Fee Study
Mid-Peninsula Water District, Capacity Fee Study
West Valley Water District, Development Impact Fee Study Quartz Hill Water District, Water Rate Study
California City, Water, Sewer, and Recycled Water Rate Study Palmdale Water District, Water Rate Study
Santa Clarita Valley Water District, Water Rate Study
California Rural Water Association, Water & Sewer Rate Studies Ventura River Water District, Cost of Service and Rate Setting Study Moulton Niguel Water District, Cost of Service Peer Review Carpinteria Valley Water, District Cost of Service and Rate Setting Study Manatt, Phelps, & Phillips, LLC, Rate Comparison Study
National Resources Defense Council, LADWP Data Collection & Water Rate Analysis
West Basin Municipal Water District, Landscape Irrigation Efficiency Program Las Virgenes Water Budget Model
Fremont Valley Preservation Project, Water Rate, and Revenue Analysis Study Golden State Water Company, Comparative Water Rate Analysis Goleta Sanitary District/Goleta West Sanitary District, Economic Analysis of Development Projections
Santa Barbara County, Economics of Groundwater Management City of Santa Barbara, Desalination Plant Environmental Impact Report United States Army Corps of Engineers, Flood Protection and Recreation Study

TECHNICAL SPECIALTIES
• Project Management
• Regional and Resource
Economics
• Rate and Fee Comparison
• Economic Impact Studies
• Public Sector Water Economic
and Planning Analysis
• Technical Report Review
• Cost of Service Rate Studies
• Development Impact Fees
• Resource Planning
• Econometric Modeling
• Survey Design and
Implementation

PROFESSIONAL HISTORY
Robert D. Niehaus, Inc.

Managing Director
(1983-Present)

EDUCATION
Doctor of Philosophy in Economics
(1979) University of Maryland
Bachelor of Arts in Government
(1972) Oberlin College
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Ichiko Kido, M.B.A. – QA/QC Consultant

OVERVIEW & BIOGRAPHY
Ms. Kido has 30 years of experience in utility financial planning. Ms. Kido advises RDN as a leading expert in developing rates and fees that meet Proposition 218 requirements and other laws and regulations. She is widely recognized as a leading consultant for designing conservation-based water rates, including budget-based rate designs. She also managed capacity fee charges throughout the state, ensuring the fees are compliant despite the dynamic regulatory landscape. Her expertise is founded upon her experience working with more than 200 water utilities throughout California. Ms. Kido is a member of the American Water Works Association (AWWA) and promotes best practices in the AWWA’s Manual M1 Principles of Water Rates, Fees and Charges and the WEF Manual of Practice Number 27.

RELEVANT PROJECT EXPERIENCE
South Coast Water District, Water, Recycled Water, and Sewer Rate Studies City of Alhambra, Water Rate Study
Montecito Sanitary District, Wastewater Rate Study
Ventura River Water District, Water Rate Financial Plan Napa County – LBRID/NBRID, Water and Wastewater Rate Studies Quartz Hill Water District, Water Rate Study
Redway Community Services District, Water and Sewer Rate Studies West Valley Water District, Development Impact Fee Study Mid-Peninsula Water District, Capacity Fee Study
Timber Cove County Water District, Water Rate Study
Riebli Mutual Water Company, Water Rate Study
Palm Ranch Irrigation District, Water Rate Study
City of Greenfield, Water and Sewer Rate Studies
Chester Public Utilities District, Water and Sewer Rate Studies Lost Hills Utility District, Water and Sewer Rate Studies North Edwards Water District, Water Rate Study
Mendocino City Community Services District, Sewer Rate Study Manatt, Phelps, and Phillips, LLC, Water Rate Comparison Study Lake County Sanitation District, Sewer Rate Study
Wynola Water District, Water Rate Review
Riverfront Mutual Water Company, Water Rate Study
San Simeon Community Services District, Sewer Rate Study City of Loyalton, Sewer Rate Study
Rand Community Services District, Water Rate Study
Center Water Company, Water Rate Study
Palmdale Water District, Water Rate Study
Santa Clarita Valley Water, Water Rate Review
West Valley Water District, Construction Water Rate Study Hi-Desert Mutual Water Company, Water Rate Study
Apple Valley Heights County Water District, Water Rate Study

TECHNICAL SPECIALTIES
• Financial Planning
• Cost of Service Analysis
• Rate Design
• Rate Comparison Analysis
• Housing Market Analysis
• Data Analysis
• Technical Report Review
• Survey Interviewing
• Statistical Analysis

PROFESSIONAL HISTORY
Robert D. Niehaus, Inc.

Senior Technical Advisor
(2022 – Present)
Program Manager
(2005 – 2022)

EDUCATION
Master of Business
Administration (2014) Martin V.

Smith School of Business &
Economic, California State
University, Channel Islands
Bachelor of Arts in Law (1989)
Fukuoka University, Japan

PROFESSIONAL MEMBERSHIPS
• American Water Works
Association
• Association of California Water
Agencies
• California Rural Water
Association
• Association of California Water
Agencies
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Anthony Elowsky, M.A - Project Manager

OVERVIEW & BIOGRAPHY
Mr. Elowsky manages RDN’s utility financial planning projects, including water and wastewater rate- and fee-setting studies. His expertise lies in water and wastewater financial planning, cost of service analysis, rate and fee design, and applied economic research. He manages water and wastewater rate studies, capacity fee studies, and builds customized financial models to help utilities meet their financial goals. He has also conducted comparative water rate analyses and compiled and analyzed data on water rates and financial information for more than 100 purveyors throughout California. He provides rate setting expertise to professional organizations for both water and wastewater concerns. Mr. Elowsky holds a bachelor’s degree from California State University, Los Angeles as well as a master’s degree from California State University, Fullerton.

RELEVANT PROJECT EXPERIENCE
City of Corona, Utility Rate Study
Jurupa Community Services District, Comprehensive Cost of Services Study Victor Valley Wastewater Reclamation Authority, Water and Wastewater Rate Studies
City of Huntington Beach, Sewer Rate Study
City of Santa Ana, Water and Sewer Financial Plans
Costa Mesa Sanitary District, Sewer Rate Study
Moulton Niguel Water District, Water Recycled Water, and Sewer Rate Review South Coast Water District, Water, Recycled Water, and Sewer Rate Studies High Valleys Water District, Water Rate Study
City of Alhambra, Water Rate Study
Montecito Sanitary District, Wastewater Rate Study
Rosamond Community Services District, Water and Wastewater Rate Study Ventura River Water District, Water Rate Financial Plan Loleta Community Services District, Sewer Rate Study
Lone Pine Community Services District, Wastewater Rate Study Greenfield County Water District, Water Rate Study
Napa County – LBRID/NBRID, Water and Wastewater Rate Studies Quartz Hill Water District, Water Rate Study
Redway Community Services District, Water and Sewer Rate Studies West Valley Water District, Development Impact Fee Study Mid-Peninsula Water District, Capacity Fee Study
City of California City, Water and Wastewater Rate and Capacity Fee Studies San Simeon Community Services District, Sewer Rate Study City of Loyalton, Sewer Rate Study
Rand Community Services District, Water Rate Study
Center Water Company, Water Rate Study
Palmdale Water District, Water Rate Study
Santa Clarita Valley Water, Water Rate Review
West Valley Water District, Construction Water Rate Study Hi-Desert Mutual Water Company, Water Rate Study
Apple Valley Heights County Water District, Water Rate Study Daggett Community Services District, Water Rate Study

TECHNICAL SPECIALTIES
• Financial Planning
• Cost of Service Analysis
• Rate Design
• Database Management
• Rate Comparison
• Data Analysis
• Technical Report Review

PROFESSIONAL HISTORY
Robert D. Niehaus, Inc.

Project Manager/Analyst (2018-
Present)
Market Researcher (2017-2018)
Dudek Environmental, Inc.

Field Technician (2016-2017)

EDUCATION
Master of Arts (2020) CSU,
Fullerton
Bachelor of Arts (2014) CSU, Los
Angeles

PROFESSIONAL PRESENTATIONS
• Wastewater Rate Changes and
the Journey to Acceptance
California Rural Water
Association Expo 2022,
Stateline, NV. March.
• Incorporating Customer Use
Distributions when Calculating
Drought Surcharges. Paper
presented at the ACWA Virtual
Fall Conference, October 27-
29, 2020.

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FEE
Table 1 presents RDN’s fee proposal. Our not-to-exceed fee proposal to provide professional consulting services to conduct the City of San Fernando’s Water and Sewer Rate Study, including other direct costs and travel expenses, is $59,440.

Table 1. RDN Not-to-Exceed Fee Proposal
Project
Director
Project
Manager
QA/QC
Consultant Consultant
Niehaus Elowsky Kido
Kallerud
and Van
Dinther
Task 1 - Long Range Financial Forecast 5 21 5 40 71 $15,520

1.1 Demand Projections/Revenue Analysis 1 3 1 8

1.2 Operation and Maintenance Expense 1 6 1 8

1.3 Capital Improvement Funding 1 4 1 8

1.4 Reserve Funding 1 4 1 8

1.5 Cash Flow Pro-Forma 1 4 1 8
Task 2 - Rate Study 4 51 11 30 96 $21,220

2.1 Sensitivity Analysis 1 6 2 2

2.2 Forecasting Models 0 4 0 6

2.3 Review Customer Classes 1 6 1 2

2.4 Evaluate the Current Rate Structures & Identify Rate Alternatives 1 2 0 2

2.5 Cost Funtionalization 0 4 1 2

2.6 Cost Allocation to Cost Causitive Components 0 4 1 2

2.7 Cost Allocation to Customer Classes 0 6 2 2

2.8 Develop Recommended Rates 1 16 2 2

2.9 Evaluate Impacts 0 1 1 4

2.10 Rate Comparison Survey 0 2 1 6
Task 3 - Public Outreach/Proposition 218 Assistance 0 12 3 6 21 $4,560

3.1 Proposition 218 Support 0 2 1 2

3.2 Proposition 218 Notice 0 4 1 2

3.3 Proposition 218 Public Hearing 0 6 1 2
Task 4 - Reports and Public Meetings 2 32 8 40 82 $17,640

4.1 Public Meetings 1 16 4 4

4.2 Rate Study Reports 1 16 4 36
Estimated Direct Expenses $500
Total Hours 11 116 27 116 270
Hourly Rate $340 $220 $240 $200
Total Cost $3,740 $25,520 $6,480 $23,200 $59,440
Task Total
Hours
Total
Cost
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WORK SCHEDULE
Figure 2 presents a preliminary schedule for completing the City’s study for July 1, 2025 implementation date for new rates. The schedule assumes timely kick-off, City data, feedback, and availability for meetings. The final schedule will be discussed and agreed upon at the Kick-off Meeting.

Figure 2. Preliminary Project Schedule
Tasks

1. Long Range Financial Forecast

2. Rate Study

3. Public Outreach/Prop 218 Assistance

4. Reports and public meetings
Implementation - July 1, 2025
Draft Report
Final Report
Public Workshop
Rate Hearing
Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25
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QUALIFICATIONS
RDN is a professional economic and financial consulting firm (C-Corporation), headquartered in Santa Barbara,
delivering solutions to California utilities and Federal agencies. RDN is celebrating 40 years of consulting
services for water, sewer, stormwater, housing, and
energy projects throughout California and worldwide
since the firm’s founding in 1983. Our staff have
completed over 1,000 projects with economic, financial, and market analysis experience. Our proposed project team has decades of experience in water, recycled water, and wastewater rate analyses, development impact fees, data management, public relations support, and econometric modeling and forecasting of demand.

RDN has demonstrated strong fiscal stability over 40 years of consulting and has over one million in cash and cash equivalents on hand (six months of payroll). RDN is independent and licensed to practice in California and has no conflict with other work performed for the City.

Table 2 and Table 3 present a selection of our RDN’s recent experience over the past five years.

RDN BY THE NUMBERS
➢ $6M Annual Revenue/20 Employees
➢ 1,000+ Projects Accomplished Worldwide
➢ 100+ Years of Project Team Experience
➢ 48 States Served
➢ 40 Years Consulting for Utility Systems
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Table 2. RDN Recent Projects
Agency Project Year Contact Progress (%) Staff
SCV Water
Ratepayer's Advocate for Water,
Recycled Water, Wholesale Rates Ongoing
Rochelle Patterson|661-513-1239
[email protected] 30%

RN,IK,AE,
BK,ZV
Napa County
Napa Berryessa Financial Plan
Review Ongoing
Annamaria Martinez|707-259-8378
[email protected] 40%

RN,IK,AE,
BK,ZV
City of Corona Uitility Rate Study Ongoing
Katie Hockett|951-279-3601
[email protected] 90%

RN,IK,AE,

BK,ZV,SG
Palmdale Water District Water Rate Study Ongoing
Dennis Hoffmeyer 661-456-1021
[email protected] 90%

RN,IK,AE,

BK,ZV,SG
Serrano WD
Water Financial Plan |Budget
Based Rate Feasibility Study Ongoing
Jerry Vilander|714-538-0079
[email protected] 30%

RN,IK,AE,

BK,ZV,SG
Mid-Peninsula Water District Capacity Fee Study Ongoing Rene Ramirez|650-591-8941
[email protected] 95%

RN,IK,AE,
BK,ZV
South Coast Water District
Budget Based Rate Feasibility
Study Ongoing
Jennifer Leisz|949-342-1141
[email protected] 75%

RN,IK,AE,

BK,ZV,SG
Victor Valley Wastewater
Reclamation Authority Wastewater Financial Plan Ongoing Xiwei Wang|760-246-8638
[email protected] 95%

RN,IK,AE,

BK,ZV,SG
City of Santa Ana Water Financial Plan Ongoing
Armando Fernandez|714-647-3316
[email protected] 85%

RN,IK,AE,

BK,ZV,SG
Ventura River Water District Water Rate Study Ongoing
Alma Quezada|805-646-3403
[email protected] 85%

RN,IK,AE,
BK,ZV
Montecito Sanitary District Wastewater Rate Study Ongoing John Weigold|203-912-5652
[email protected] 50%

RN,IK,AE,

BK,ZV,SG
City of Huntington Beach Wastewater Rate Study 2024
Alvin Papa|714-536-5503
[email protected] 100%

RN,IK,AE,
BK,ZV
Jurupa CSD
Water and Wastewater Rate
Study 2024
Steve Popelar|951-685-7434
[email protected] 100%

RN,IK,AE,
BK,ZV:G
City of California City
Water and Wastewater Rates
and Capacity Fees 2024
Joe Barragan|760-373-7162
[email protected] 100%

RN,IK,AE,
BK,ZV
City of Lynwood
Water and Wastewater Rate
Study 2024
Rene Cambero|951-581-7757
[email protected] 100%

RN,IK,AE,

BK,ZV,SG
Santa Clarita Valley Water
Agency
Ratepayer's Advocate for Water,
Recycled Water, Wholesale Rates 2023
Rochelle Patterson|661-513-1239
[email protected] 100%

RN,IK,AE,
BK,ZV
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Table 3. RDN Recent Projects Continued
Agency Project Year Contact Progress (%) Staff
South Coast Water District
Water, Recyled Water, and
Wastewater Rate Study 2023
Jennifer Leisz|949-342-1141
[email protected] 100%

RN,IK,AE,

BK,ZV,SG
City of Greenfield
Water and Wastewater Rate
Study 2023
Tony Nisich|805-697-1403
[email protected] 100%

RN,IK,AE,
BK,ZV
Greenfield CWD Water Rate Study 2023
Nich Cooper|661-831-0989
[email protected] 100%

RN,IK,AE,
BK,ZV
Lone Pine CSD Wastewater Rate Study 2023
Emma Bills|760-920-1113
[email protected] 100%

RN,IK,AE,
BK,ZV
Redway CSD
Water and Wastewater Rate
Study 2023
Glenn Gradin|707-923-3101
[email protected] 100%

RN,IK,AE,
BK,ZV
Hilton Creek CSD Wastewater Rate Study 2023
Lorinda Beatty|760-965-9696
[email protected] 100%

RN,IK,AE,
BK,ZV
Riebli MWC Water Rate Study 2023
Kevin Baughman|707-953-8292
[email protected] 100%

RN,IK,AE,
BK,ZV
City of Alhambra Water Rate Study 2023
Dennis Ahlen|626-570-3274
[email protected] 100%

RN,IK,AE,
BK,ZV
Moulton Niguel Water District
Water, Wastewater, Recycled
Water Cost of Service Peer
Review
2022
Kaden Young|949-831-2500
[email protected] 100%

RN,IK,AE,
Ka
Lake Arrowhead CSD
Water and Wastewater Rate
Study 2022
John O'Brien|909-336-7108
[email protected] 100%

RN,IK,AE,
Ka
Costa Mesa Sanitary District Wastewater Rate Study 2022 Mark Esquer|949-645-8400
[email protected] 100%

RN,IK,AE,
Ka
Ventura River Water District Water Budget Rate Study 2021 Alma Quezada|805-646-3403
[email protected] 100%

RN,IK,AE,
BK,ZV
City of Loyalton Wastewater Rate Study 2021
Kathy LeBlanc|530-993-6750 ofclerk[email protected] 100%RN,IK,AE, Ka
Napa County (LBRID/NBRID) Water and Wastewater Rate Studies ; Post-Fire Review 2020,2021 Annamaria Martinez|707-259-8378
[email protected] 100%

RN,IK,AE,
BK,ZV
Lost Hills Utility District Wastewater Rate Study 2021
Ana Chavez|661-797-2903
[email protected] 100%

RN,IK,AE,
BK
West Valley Water District Development Impact Fee Study 2021 Bertha Perez|909 644-2108
[email protected] 100%

RN,IK,AE,
BK
CSD |Community Services District; CWD |County Water District; MWC |Mutual Water Company RN:Niehaus, IK:Kido, AE:Elowsky, BK:Kallerud, ZV:Van Dinther, SG:Gaur CONTRACT NO. 2336
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REFERENCES
With over 90 percent of our work resulting from repeat business, RDN prides itself on continuing relationships that we have developed over three decades of consulting. We invite you to contact our references to verify our quality of service on similar engagements. A sample of our past and current projects are highlighted below.

Jurupa Community Services District
Water, Sewer, Recycled Water Rate Study
October 2023 – April 2024
RDN staff: Niehaus, Elowsky, Van Dinther, Kallerud
Jurupa Community Services District retained Team RDN to develop rates for their water and sewer utilities. We also provided support for instituting new recycled water rates. RDN provided financial planning strategies, a cost allocation plan, and helped the District’s finance teams schedule capital improvements to ensure that rates had the least impact on customers. We designed new usage tiers for residential customers which were based on actual use patterns and reflected the best value for customers who used less water. One key finding of the study was that fixed charges did not reflect the actual fixed costs. RDN recommended increasing the District fixed cost recovery to better reflect JCSD’s cost structure. Study was completed on schedule and under budget with the Prop 218 Hearing completed in April, 2024.

City of Corona
Tiered Water Budget, Reclaimed Water, Sewer, Electric Rates April 2024 – January 2025
RDN staff: Niehaus, Elowsky, Van Dinther, Kallerud
The City of Corona retained RDN and WRE to develop tiered water budget, reclaimed water, sewer, and electric utility rates. RDN assisted the City with detailed financial plans for each utility. We recommended the City issue debt to fund long-term capital budgets to increase equity between current and future customers. To fine-tune the City’s water budget-based rate structure, we recommended that the City lower the indoor water budget (tier 1) from 55 gpcd to 47 gpcd to assist the City with achieving the State’s target of 47 gpcd in 2025. Since ease of customer understanding is a critical policy objective for the City, we also recommended that the City reduce the number of residential tiers from 5 tiers to 4 tiers and from 4 tiers to 3 tiers for all other customers, which also better aligns City costs with Proposition 218 compliance.

The study is on schedule and within budget. New rates are scheduled to be implemented on January 1, 2025.

Steven Popelar
Director of Finance & Administration
951-685-7434
[email protected]
11201 Harrel Street
Jurupa Valley, CA 91752
Tom Moody
Director of Utilities
951-736-2477
[email protected]
400 S. Vicentia Ave
Corona, CA 92882
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City of Alhambra
Water Rate Study
December 2021 – July 2023
RDN staff: Niehaus, Elowsky, Kido, Kallerud, VanDinther The City of Alhambra retained RDN to develop financial plan and rate recommendations for their water utility. The City had not adopted new rates in over ten years. We used an econometric approach to produce new demand projections that incorporated new consumption patterns as well as customer growth. To smooth the transition of proposed rate adjustments, RDN assisted the City in the timing of capital projects through the study period and beyond. Our proposed rates improved customer equity by distributing costs among larger and smaller users. The City’s rates were approved in July 2023, with a total of 30 protest letters being received out of over 15,000 notices mailed.

Quartz Hill Water District
Water Budget-Based Rate Study
August 2020 - January 2021
RDN staff: Niehaus, Kido, Elowsky, Kallerud
Quartz Hill Water District engaged RDN to design a water budget rate structure that ensures revenue stability, financial sufficiency, and provides the appropriate price signals for different supply costs, peaking costs, and conservation program funding for the District. We improved the outdoor water budget allocations using GIS data, complementing the District’s long-term goals to ensure water efficiency and support water supply management. The budget-based rate structure was simplified to improve customer understanding. RDN also assists the District on an ongoing basis to confirm annual budgets and spending projections. Total project cost:
$50,000. Study completed on schedule and within budget.

Santa Clarita Valley Water Agency
Water Rate Study (August 2019 – February 2020)
Water Rate Study (Ongoing)
RDN staff involved: Niehaus, Kido, Elowsky, and Kallerud The Santa Clarita Valley Water Agency (SCV Water) retained RDN to review and evaluate the water rates developed by SCV Water for their accuracy and equitability to existing and new customers. This project included an evaluation of the methodology used to project demands and account growth for the planning period, a review of capital improvement costs included in the rate calculation, and a review of estimation of potential developments in the community for the next 30 years. RDN is currently assisting SCV Water in completing a second 5-year rate study for one to account for unintended increases in costs due to recent financial conditions and inflation. RDN also assisted SCV Water to complete facility capacity fee and regional capacity fee studies which were adopted in 2020 and 2023, respectively. The current rate plan was approved by the Board of Directors and will be adopted July 1, 2025.

Dennis Ahlen
Deputy Director of Utilities
626-570-3274
[email protected]
68 South First Street
Alhambra, CA 91801
Brent Byrne
General Manager
661-943-3170
[email protected]
5034 W Ave L
Quartz Hill, CA 93536
Rochelle Patterson
Chief Financial and Administrative
Officer
[email protected]
661-513-1239
27234 Bouquet Canyon Road
Santa Clarita, CA 91350
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INSURANCE
RDN’s certificate of insurance is presented below.

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APPENDIX
The appendix of this proposal includes a detailed scope of services.

SCOPE OF SERVICES
Task 1. Long Range Financial Forecast
Task 1.1. Demand Projections/Revenue Analysis
RDN will conduct detailed demand and growth projections to ensure the City’s revenue forecast and cash flow analysis are accurate. Water consumption is influenced by price signals, weather/rainfall, high-efficiency technologies, and conservation programs. We will first evaluate how the City’s customers’ water consumption patterns have changed historically, and then incorporate City growth trends and the elasticity of customer demand in response to various rate increase scenarios to project future water demand. We will also model potential drought scenarios and their impacts on rate revenues. Based on the demand projections, we will forecast revenue using the existing rates. We will also identify any changes to other revenues such as miscellaneous charges, property taxes, and investment income.

Task 1.2. Operation and Maintenance Expenses
Using the City’s budgetary documents, we will project operating and maintenance (O&M) expenses and develop reasonable inflationary factors for relevant itemized expenses using reliable published sources or City’s historical data. We will compare each utility’s costs against appropriate industry benchmarks. We also incorporate any known changes to personnel, level of service, or projected growth. We will pay particular attention to how general fund overhead costs are allocated to each utility. Each expense item will be categorized as either fixed or variable and direct or indirect to ensure that costs are allocated to the correct rate structure components when designing rates.

Task 1.3. Capital Improvement Funding
RDN will review the City’s ten-year capital projects plan and explore financing options based on the timing of proposed revenue adjustments and scheduled repairs and replacements. We will also incorporate long-term replacement needs detailed in the City’s Master Planning documents. Funding sources may include cash reserves, grant funding, debt proceeds, or PAYGO (pay as you go), each with different rate impacts. The City may also consider changes in capital expenditure timing to mitigate short-term rate impacts and smooth revenue requirements.

Task 1.4. Reserve Funding
RDN will recommend how to best build ideal reserve targets. We will review the City’s reserve policies and develop an implementation plan that maintains recommended balances for each fund that are consistent with the City’s financial goals, risk tolerance, and capital improvement projects.

Objective: RDN will review City data to develop a long-term financial plan based on revenue generated from current rates, fees, and other revenue sources, budgeted and projected expenses, potential debt service payments, and reserve contributions. The cash flow projections and revenue requirements will plan for the study period. To project revenue and costs, we use an econometric, data-driven approach that provides the highest level of accuracy and reliability for the City’s financial plan.

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Task 1.5. Cash Flow Pro-Forma
RDN will develop a cash flow pro-forma that will chart all data collected and projections made to complete the long-range financial forecast. We will provide a revenue requirements projection for FY 2025-29 through FY 2029- 30 that will show if revenue adjustments are needed to achieve the financial goals identified by City staff. Further, we will evaluate the impact of not implementing a rate increase for that five-year period on fund balances and capital spending levels.

Table 4. Task 1. Long Range Financial Forecast
Meetings ▪ Progress meetings via teleconference
RDN Deliverables ▪ Existing cost of service summary
City Deliverables ▪ Financial information and input
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Task 2. Rate Study
Task 2.1. Sensitivity Analysis
Our standard econometric equation implemented for forecasting water demand includes variables for drought level. The United States Drought Monitor provides weekly drought data at the county level across the U.S. Included in this data set is the percentage of the county that was under various drought designations during the given week.

Including these variables for drought in our econometric equation used in the forecasting process enables RDN to examine the effect of drought on customer response. RDN also estimates the price-elasticity of demand for water by comparing the water usage of customers over time as water rates have changed. We include a section that incorporates a Monte Carlo simulation to assess customer’s responses to a wide variety of potential weather, price, and regulatory conditions. By analyzing the results from thousands of simulations, our rates are designed to be prepared for a wide range of potential outcomes.

Task 2.2. Forecasting Models
The forecasting model will be developed in an easy-to-use Microsoft Excel format designed to allow City staff to conduct sensitivity scenarios by testing various assumptions through an interactive dashboard. Factors that may be adjusted in the rate models include customer growth and water use, operating expense levels, CIP spending, capital equipment funding, impacts of rate increases, and pass-through charges. The models will be introduced to City staff early in the study process. We will add worksheets gradually as we perform key analyses through the study and ask for the City’s review. Any changes to the underlying models will appear instantly in a dashboard for quick executive evaluation. The underlying dynamic data flow within the model is shown in Table 2.

Table 5. Sample Model Flowchart
Model Input Analysis Model Output Results
Staff Levels Cash Flow Fund Balances
Water Demand Annual CIP Debt Service
Coverage
Operating
Expense
Fixed Rates Monthly Bills
CIP Plan Variable Rates Bill Impacts
Revenue
Requirements
Rate Impacts
Objective: RDN will allocate costs among customers commensurate with their service requirements. We will evaluate existing customer classes and recommend changes to cost allocations, as necessary. The cost of service analysis will ensure that costs are equitably distributed to ratepayers in compliance with Proposition 218 and that established rates adequately cover the costs to provide reliable service. To conduct the analysis, we will employ methodologies approved by the AWWA Manual M1 and WEF Manual 27 and ensure the analysis meets industry standards and Proposition 218 requirements. We will review the City’s current rate structures for all customer classes and provide recommendations on how to balance fixed and volumetric charges to ensure revenue adequacy while maintaining rate affordability. Additionally, we will provide an analysis of surrounding utilities and show how rate alternatives measure against other local agencies.

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Task 2.3. Review Customer Classes
RDN will evaluate the City’s customer classifications and recommend any necessary changes. Assigning costs accurately to classes of customers based on their service requirements is critical to designing Proposition 218- compliant rates. We will explore alternative cost allocations to find which best aligns with the City’s goals.

Task 2.4. Evaluate the Current Rate Structures & Identify Rate Alternatives We will perform a comprehensive review of the City’s current rate structures to assess the advantages and disadvantages of the existing rates. This will include an evaluation of links between cost parameters, such as peaking, customer service/billing, fixed and variable costs, and the current charges. Our review will also identify whether the existing rates optimize fixed and variable rate recovery to enhance stability while ensuring affordability. Based on the financial plan and cost of service analyses, we will evaluate rate adjustment alternatives designed to recover the revenue requirements identified in the financial plan. We will provide rate options for City staff and Council that adequately fund revenue requirements and the City can choose which option best conforms with stated goals.

Task 2.5. Cost Functionalization
A utility system is composed of various facilities that serve a particular function. With input from City staff, each expense identified in the financial plan will be carefully allocated to the industry standardized functions of each system in our model. These functions can be customized based on the City’s organizational structures and account for fixed and variable costs.

Task 2.6. Cost Allocation to Cost Causative Components
RDN will employ the base-extra capacity method from the AWWA M1. In this method, functionalized costs are allocated to appropriate cost causative components for each customer class. The water utility cost causative components include water supply, delivery, customer service, conservation, fire protection, and meter related costs. For sewer utilities, cost causative components include flow, strength (BOD and TSS), and customer-related services.

Task 2.7. Cost Allocation to Customer Classes
As a final step of the cost of service analysis, the costs of each component are allocated back to each customer class commensurate with their service requirements. This analysis permits the City to adhere to the general principle of cost proportionality (particularly relevant under Proposition 218), under which the rates paid by customer classes are directly proportional to the costs each class imposes on the City as a whole.

Task 2.8. Develop Recommended Rates
RDN will develop water and sewer rates with the flexibility to evaluate up to three alternative rate structures. For the water system, we will recommend the rate alternative that best meets the City’s goals and is justified by the cost of service analysis. For the sewer system, we will review customer class strengths and flows and recommend any necessary rate adjustments. The result for both systems will be rate structure recommendations that are easy to understand and administer, provide revenue adequacy, and comply with Proposition 218. We will also review potential rate structures for low income and disabled customers, which need to be funded through City general fund or non-operating revenues. Finally, RDN will provide a schedule of drought surcharges that the City can use during State mandated drought reductions.

Task 2.9. Evaluate Impacts
RDN will use a Water Bill Impact Calculator that can evaluate the impact of potential rate adjustments to individual customers based on their historical usage. This gives the City the most accurate understanding of how proposed CONTRACT NO. 2336
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rate adjustments will impact customers. Figure 1 is a sample chart from the bill impact tool that shows individual annual bill impacts on each customer by meter size.

We employ this tool during the rate-design process to evaluate the impact of various rate alternatives on City customers. Once RDN has proposed rate adjustments, the Bill Impact Calculator is an effective public engagement tool, allowing the City to see which customers would be most impacted by proposed rates and foresee potential challenges, which can be mitigated ahead of the Proposition 218 Hearing.

Figure 3. Sample Bill Impact Analysis by Customer Class Task 2.10. Rate Comparison Survey
We will prepare a rate comparison survey of at least five comparable agencies to benchmark the City’s current and proposed rates. Comparisons will be made for users at high, average, and low consumption levels. We will request staff input on agencies to include in the survey and summarize the results for public outreach, presentations, and the report.

Table 6. Task 2. – Rate Study Deliverables
Meetings ▪ Progress meetings via teleconference
RDN Deliverables
▪ Final rate models in Excel
▪ Bill Impact Calculator results
▪ Draft and final reports in Word and PDF formats
City Deliverables ▪ Comments, responses, and recommendations to draft report CONTRACT NO. 2336
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Task 3. Public Outreach/Proposition 218 Assistance
Task 3.1. Proposition 218 Support
We will work with City staff to design public outreach materials to convey study findings and rate alternatives. At the City’s request, messaging may be designed to incorporate flyers, handouts, mailers, social media posts, and items to be posted in the San Fernado Sun as needed.

Task 3.2. Proposition 218 Notice
We will work with City staff and legal counsel to prepare a Proposition 218 notice within the 45-day noticing period. The notice will outline the proposed rate changes, the reasons for the changes, and the right for customers to challenge the rates. It is our understanding that the City will print and mail the notices.

Task 3.3. Proposition 218 Public Hearing
After mailing the Proposition 218 notice – which will outline the proposed rate changes, the reason for the changes, and the rights for customer to challenge the rates – RDN will present the results of the study and answer questions from the City Council and public at the Proposition 218 Hearing. In coordination with the City’s legal counsel, we will use clear, concise language and visual messaging to communicate the rate study process and why the recommended rate structure was selected.

Table 7. Task 3. – Public Outreach/Proposition 218 Assistance Meetings ▪ Proposition 218 Hearing
▪ Progress meetings via teleconference
RDN Deliverables
▪ Final rate models in Excel
▪ Bill Impact Calculator results
▪ Draft and final reports in Word and PDF formats
City Deliverables ▪ Comments, responses, and recommendations to draft report Objective: RDN will hold four public meetings with the City Council and concerned constituency. We will work to build consensus for any rate design changes based on priorities set by City staff and stakeholders. RDN will provide final executive reports to City staff upon project completion. Our reports will describe the process of the rate studies in sufficient detail to meet Proposition 218 and all other relevant legal requirements.

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Task 4. Reports and Public Meetings
Task 4.1. Public Meetings
RDN is committed to providing transparent project management and open communication with the City.

Additionally, we propose to hold four, in person, public meetings where we discuss the results of the cost of service study.

Public Meetings (4)
Goal: Present rate change recommendations and help the community understand the trade-offs that were made and why and build consensus for proposed recommendations.

Structure: RDN will present the results of the study so the community will have a clear picture of which priorities were emphasized and why. These meetings will also be a forum for the City Council to review the rate structure recommendations as stated and make any final refinements requested to ensure consensus before moving into the Proposition 218 process. The rate structure refinements which the Council determines best fit their priorities will be used in the rate setting portion of the study and in the final rate recommendations based on financial plans.

We will present the impacts of each structure option for all customer groups.

We will also attend and present rate study findings at the Proposition 218 Hearing as described in Task 3.

Task 4.2. Rate Study Reports
The draft rate study reports will contain an overview, study objectives, assumptions, regulatory requirements, and methodologies. They will discuss short- and long-term financial planning, capital planning, cost of services, ratesetting analysis, bill impacts, and comparison surveys. Key outputs of data, analysis, and rationale will be visualized in the reports. The visualizations provided in the reports will be an effective tool to communicate conclusions to the City Council, customers, and other stakeholders. The main sections of the draft report at a minimum will include:

Objective: RDN will hold four public meetings with the City Council and concerned constituency. We will work to build consensus for any rate design changes based on priorities set by City staff and stakeholders. RDN will provide final executive reports to City staff upon project completion. Our reports will describe the process of the rate studies in sufficient detail to meet Proposition 218 and all other relevant legal requirements.

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Table 8. Report Sections and Corresponding Contents
We will incorporate City feedback into the final report and clearly demonstrate the nexus between costs and recommended rates in simple terms to fulfill Proposition 218 reporting requirements.

Table 9. Task 4. – Reports and Public Meetings Deliverables Meetings ▪ Four (4) Public Meetings
RDN Deliverables ▪ Draft meeting presentations
▪ Final meeting presentations
City Deliverables ▪ Comments on presentations
Heading Section Brief
Executive Summary A narrative to summarize the scope of the study.

Introduction A brief description of the City including organizational structure, population, service area, water and sewer system.

Methodology Used A description of the methodology used for analyzing the water rates and how the study complies with Proposition 218 and other applicable laws.

Financial Plan A review of O&M budget, overhead costs, capital plan, revenue analysis, needed revenue adjustments, inflation analysis, and customer growth/demand.

Cost of Service A description of current/proposed customer classes, Prop 218 compliant cost allocation to each class by function, and the total revenue requirements by each class.

Rate Design A detail of the proposed rate structures, proposed inflationary adjustments, and a typical bill for different types of customers.

Rate Impact A summary on the impacts rate changes will have on each customer and the community using RDN's Bill Impact Tool.

Sensitivity Analysis A discussion of how conservation, drought, and future statutory regulations will effect the ability of rates to fund revenue requirements.

Rate Comparison A comparison of monthly bills and of current and proposed rates with similar sized Cities and Districts within the surrounding area.

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AGENDA REPORT
PUBLIC WORKS DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1222 WWW.SFCITY.ORG REVIEW: ☒ Finance Director ☒ Deputy City Manager ☒ City Manager To: Mayor Mary Mendoza and Councilmembers
From: Nick Kimball, City Manager
By: Wendell Johnson, Director of Public Works

Date: January 21, 2025
Subject: Consideration to Approve an Increase to the Capital Project Budget and Construction for the Traffic Signal Modifications – 9 Locations Highway Safety Improvement Project No. HSIPL-5202(019), Plan No. P-722 to the Not-to-Exceed Contingency Amount and Adopt a Resolution Appropriating Funds RECOMMENDATION:

It is recommended that the City Council:
a. Approve an increase of $150,000 to the Capital Project Budget for the Traffic Signal Modifications – 9 Locations Highway Safety Improvement Project Federal Project No.

HSIPL-5202(019), Job No. 7598, Plan No. P-722, to the not-to-exceed amount of $1,810,227; b. Approve an increase to the construction contingency to 20% increasing the not-to-exceed amount from $122,943 to $245,886; and
c. Adopt Resolution No. 8357 (Attachment “A”) amending the Fiscal Year (FY) 2024-2025 Adopted Budget appropriating Proposition C Fund expenditures.

BACKGROUND:

1. On August 20, 2018, the City Council accepted the Highway Safety Improvement Program (HSIP) grant from the California Department of Transportation (Caltrans) in the amount of $1,096,000, authorized the execution of the HSIP agreement with Caltrans for the HSIP Cycle 8 Traffic Signal Improvements Project and adopted Resolution No. 7880 amending the FY 2018-2019 adopted budget appropriating the grant expenditures and revenues.

2. On June 27, 2023, the City received its Authorization to Proceed with Construction (CON E-76) from Caltrans.

3. On February 7, 2024, the City submitted a Request for Cost Change to Caltrans to obtain additional HSIP funding ($453,176) for the Traffic Signal Modification Project.

4. On February 8, 2024, Caltrans notified the City that its request for an additional $453,176 in HSIP funds had been approved (Attachment “B”).

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Consideration to Increase the Capital Project Budget and Construction Contingency for the Traffic Signal Modifications – 9 Locations Highway Safety Improvement Project and Increase the Not-to Exceed Contingency Amount for the Project; and Adopt a Resolution Appropriating Funds

5. On February 20, 2024, the City Council approved a Construction Contract with Alfaro Communications Construction, Incorporated for an amount not-to-exceed $1,229,429.51 and approved a project contingency in an amount not-to-exceed 10% of the contract amount, or $122,942.95, to cover costs of unforeseen conditions.

ANALYSIS:

Improving traffic signals is crucial for a city's efficiency, safety, and sustainability. Optimized signals enhance traffic flow, reducing congestion and travel times, which boosts productivity and minimizes driver frustration. They also play a vital role in reducing accidents by providing clear, predictable patterns for vehicles and pedestrians. Modernized signals, such as those integrated with adaptive technology, can lower emissions by cutting down idling times, contributing to environmental sustainability. By prioritizing traffic signal upgrades, cities can create safer, greener, and more efficient transportation systems for their residents.

The Traffic Signal Modification Project was selected for funding through the State of California HSIP – Cycle 8. The HSIP is a federal-aid program with the purpose to achieve significant reduction in traffic fatalities and serious injuries on public roads. The Traffic Signal Modification project will help to improve traffic safety for both pedestrians and motorists at nine (9) intersections within the City’s main transportation corridor, specifically along the Metrolink rail corridor.

The nine (9) intersections include:
• Hubbard Avenue at San Fernando Road
• Hubbard Avenue at Truman Street
• Hubbard Avenue at First Street
• Maclay Avenue at San Fernando Road
• Maclay Avenue at Truman Street
• Maclay Avenue at First Street
• Brand Boulevard at San Fernando Road
• Brand Boulevard at Truman Street
• Wolfskill Street at Truman Street
The traffic signal modifications consist of the removal and installation of: new signal poles; pedestrian heads; pedestrian push buttons; LED luminaires; street name signs; controllers; wiring; curb ramp; signing; striping; etc.

Project Status.

The City’s contractor has completed the installation of eight (8), out of nine (9), traffic signal poles to date. The removal and reconstruction of wheelchair ramps and adjacent sidewalks is approximately 95% complete. New traffic signal heads and pedestrian heads have been installed on both existing and new traffic signal poles. The installation of a new cabinet and controller at Truman Street and Maclay Avenue has also been completed.

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Consideration to Increase the Capital Project Budget and Construction Contingency for the Traffic Signal Modifications – 9 Locations Highway Safety Improvement Project and Increase the Not-to Exceed Contingency Amount for the Project; and Adopt a Resolution Appropriating Funds

Currently, the contractor is working on the rewiring of several project intersections. Remaining improvements to be completed include signing and striping, installation of truncated domes, and installation of the final traffic signal pole at the intersection of Hubbard Avenue and First Street.

To date, the project is approximately 80% complete and scheduled to be completed in late February 2025.

Reasons for Increasing Project Budget.

The original approved construction contingency amount ($122,943) has been utilized for unforeseen tasks such as sidewalk work, pedestrian push button post installations, exploratory borings, patch and repair of concrete and street name sign revisions. The additional funding being requested will be used for the following:

At three (3) project intersections, the contractor is having a difficult time removing the wiring from the existing conduit which is required in order to install new wiring for the intersection.

Removing wiring from existing conduit during traffic signal upgrades is challenging due to several factors. These factors include, over time, wires can become stuck due to corrosion, dirt, or debris inside the conduit, or from the conduit itself being damaged or bent. Additionally, old wiring insulation can degrade, causing it to stick to the conduit walls. Further conduits may be tightly packed, leaving little room to maneuver wires. That said the stated factors make the process of removing the old wiring very costly due to it being labor-intensive, time-consuming, and requiring specialized tools and techniques to avoid damaging the conduit or new wiring.

The installation of new conduit is necessary to complete the project scope of work and finalize the project. With this being the case, staff recommends that the $150,000 in additional funds being requested for the project be approved.

BUDGET IMPACT:

The City Council approved a total budget of $1,674,657 for the Traffic Signal Modification Project; this included a 10% project contingency of $122,943 to cover costs of unforeseen conditions.

Staff is requesting an increase of $150,000 to the project budget creating a new total project budget of $1,810,227. The additional funds will be utilized to increase the not-to-exceed project construction contingency to 20% and to cover the cost of engineering services not covered under the HSIP grant agreement. Funds from the Proposition C – Transit Development Fund (Fund 008) will be utilized to cover the additional $150,000 being requested. The Proposition C – Transit Development Fund has a current balance of $335,911 available for use towards the maintenance and repair of City-owned street lights and circuits.

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Consideration to Increase the Capital Project Budget and Construction Contingency for the Traffic Signal Modifications – 9 Locations Highway Safety Improvement Project and Increase the Not-to Exceed Contingency Amount for the Project; and Adopt a Resolution Appropriating Funds

The following is a breakdown of funding sources and uses:

SOURCES
Fund Account Number Current
Allocation Revised
HSIP Grant 010-3686-0562 $ 1,096,000 $ 1,096,000
HSIP Grant (New) 010-3686-0562 $ 453,104 $ 453,104
Total Grant Funding $ 1,549,104 $ 1,549,104
Measure M 024-3210-0562 $ 30,481 $ 16,123
Measure R 012-3210-0562 $ 95,000 $ 95,000
Proposition C – Transit Development 008-3210-0000 $ 0 $ 150,000 Total Grant Match S 125,481 $ 261,123
Total Sources: $ 1,674,657 $ 1,810,227
USES
Activity Account Number Cost
Construction Management/Inspection/
Testing/Labor Compliance 010-311-0562-4600 $ 245,911
Construction 010-311-0562-4600 $ 1,229,430
Construction Contingency (20%) 010/012/024/
008-311-0562-4600 $ 245,886
Staff Oversight/Grant Administration 012/024-311-0562-4600 $ 89,000 Total Uses: $ 1,810,227
CONCLUSION:

It is recommended that the City Council approve an increase to the capital project budget for the Traffic Signal Modifications – 9 Locations Highway Safety Improvement Project, increase the construction contingency to 20% and adopt Resolution No. 8357 amending the FY 2024-2025 Adopted Budget.

ATTACHMENTS:

A. Resolution No. 8357
B. Caltrans’ Additional Funding Approval
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ATTACHMENT “A”
RESOLUTION NO. 8357

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO, CALIFORNIA, AMENDING THE BUDGET FOR THE FISCAL YEAR 2024-2025 ADOPTED ON JULY 1, 2024, TO UTILIZE LANDSCAPE AND LIGHTING FUND

BALANCE TO COVER THE FUNDING INCREASE TO THE TRAFFIC SIGNAL MODIFICATIONS – 9 LOCATIONS HIGHWAY SAFETY IMPROVEMENT
PROJECT, FEDERAL PROJECT NO. HSIPL-5202(019), JOB NO. 7598, PLAN NO. P-722 BUDGET
WHEREAS, the City Council has received and considered the proposed adjustment to the budget for Fiscal Year 2024-2025, commencing July 1, 2024, and ending June 30, 2025; and WHEREAS, the City Council has determined that it is necessary to amend the expenditures of the current City budget; and
WHEREAS, the City requires additional funding to complete the Traffic Signal Modifications – 9 Locations Highway Safety Improvement Project; and WHEREAS, the annual budget for the City of San Fernando for the Fiscal Year beginning July 1, 2024 and ending June 30, 2025, a copy of which is on file in the City Clerk’s Office, was adopted on July 1, 2024.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN FERNANDO, DOES HEREBY RESOLVE, FIND, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The following adjustments are made to the City Budget:

PROPOSITION “C” – TRANSIT DEVELOPMENT:

Increase in Expenditures
008-311-0562-4600 $150,000
SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the City Clerk.

PASSED, APPROVED, AND ADOPTED THIS 21st day of January, 2025.

Mary Mendoza, Mayor of the City of San
Fernando, California
ATTEST:

Julia Fritz, City Clerk
January 21, 2025 Regular CC Mtg Page 279 of 518
RES. NO. 8357
2 CERTIFICATION
I, City Clerk of the City of San Fernando, California, do hereby certify that the foregoing is a full, true, and correct copy of Resolution No. 8357, which was regularly introduced and adopted by the City Council of the City of San Fernando, California, at a regular meeting thereof, held on the 21sth day of January 2025, by the following vote of the City Council:

AYES:

NAYS:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Fernando, California, this _____ day of January 2025.

Julia Fritz, City Clerk
January 21, 2025 Regular CC Mtg Page 280 of 518
ATTACHMENT "B"
Kenneth Jones
From:

Sent:

Benson, Dale@DOT <[email protected]>
Thursday, February 8, 2024 1 :58 PM
To: Lani Alfonso
Cc: Katindig, Maria L@DOT; Kenneth Jones; Emilio De Murga Subject:

Attachments:

FW: City of San Fernando - HSIPL-5202(019) - Cost Change Request HSIP Cost Change Request (019) signed.pdf
CAUTION: External Sender
This email originated from outside of the organization. Exercise caution when clicking on links or opening attachments unless you recognize the sender and know the content is safe. Please report all suspicious emails to the IT Systems Administrator.

Lani,
The cost change for HSIPL-5202(019) is approved and the HSIP database has been updated. Please retain a copy of this e-mail and attachment in the project files.

If you have any questions, please contact me.

Dale Benson
Senior Transportation Engineer
ATP and HSIP Coordinator
Caltrans District 7 Office of Local Assistance
100 S. Main Street
Los Angeles, CA 90012
(213) 266-3552
From: Dhillon, Simrit@DOT <[email protected]>
Sent: Thursday, February 8, 2024 1:40 PM
To: Benson, Dale@DOT <[email protected]>
Cc: Ke, Richard@DOT <[email protected]>; Katindig, Maria L@DOT <[email protected]> Subject: RE: City of San Fernando - HSIPL-5202(019) - Cost Change Request Hello Dale,
I have approved the cost change and updated the database.

Thank you,
Simrit Dhillon
HSIP Coordinator
Federal Infrastructure Programs Branch
Office of Federal Programs
[email protected]
(916)-628-6007
1 January 21, 2025 Regular CC Mtg Page 281 of 518
Request Form for HSIP Time Extension, Scope/Cost Change Request Form for
HSIP Project Time Extension, Scope/Cost Change
To request a delivery time extension or a project scope/cost change for a local Highway Safety Improvement Program (HSIP) project, please complete this form and submit the signed form to the .121.AE. The form must be completed and submitted by a Local Public Agency (LPA), not the consultant that works on the project.

After review, the DLAE may reject the request, or recommend to approve the request and forward it to the HQ HSIP Managers for further review.

Local Agency's Contact Person:

Name: jKenneth Jones
Phone: ja 18-898-1240
Project Information:

HSIP Unique ID: jHB-07-046
Responsible Agency: jsan Fernando ~---------......

County: jLos Angeles County
Attention:

Caltra ns District 7 DLAE
100 S. Main St, #12.040
Los Angeles, CA 90012-3712
Dear Caltrans District 7 DLAE:

Title: jManagement Analyst
Email: [email protected]
Project Number: IH.... _SI_P_L-_52_0_2(_0_19_) ___ ___,I (If available) Caltrans District:

We request that Caltrans consider this request for time extension/project scope/cost change for the subject local Highway Safety Improvement Program (HSIP) project:
(Current Project Location and Current Project Description of Work can be found at the on line Approved Project Usts.

Current Nine (9) intersections along the Metrolink rail corridor (1st St at Hubbard Ave & Maclay Ave; San Fernando Rd Project Location: at Brand Blvd, Hubbard Ave & Maclay Ave; and Truman St at Brand Blvd, Hubbard Ave, Maclay Ave & Wolfskill (max 250 characters) St)
Current
Description of Work:
(max 250 characters)
Project Category:
!Benefit-Cost Ratio (BCR)
Pagclof3
~=======================================================================:::::

Install larger signal heads, additional street lighting, and protected left turn phase signals where left turn lanes already exist.

January 21, 2025 Regular CC Mtg Page 282 of 518
Request Form for HSIP Time Extension, Scope/Cost Change This request is for (at least one needs to be checked):

D Project Delivery Time Extension
D Project Scope Change
181 Project Cost Change
Request for project cost change:

Please explain the cost change In detail below, and then complete the project cost table.

The city recently advertised and opened bids for the subject project. The city received five bids with the low bid coming in $234,930 higher than the engineer's estimate. In addition, due to the uncertain amount of coordination with Metrolink at each of the project's railroad crossings, the city anticipates the need for greater construction contingency. Originally the city anticipated being able to fund construction management and inspection with local funds, but preliminary estimates of that cost are approximately 17% of the construction cost which exceeds the city's available budget. Therefore, the city respectfully requests a construction cost change of $625,300 and Increased HSIP funding of $453, 170 to offset part of that change. The city does not have local funds to cover the additional cost and may need to request a change in scope to reduce the cost of the project If additional funding cannot be found.

Cost by Phase prior to this reqeust Cost by Phase with this request Phase Total HSIP Relmb. Ratio Total HSIP Reimb. Ratio
PE 0.00%
R/W 0.00%
CON $1,096,000 $1,096,000 100.00% $1,721,300 $1,549,170 90.00% TOTAL $1,096,000 $1,096,000 100.00% $1,721,300 $1,549,170 90.00% Note (for scope/cost change request):

1. If the request includes construction cost change, please provide an Engineer's Estimate (and/or low bidders' items estimate at award) that must match this request.

2. If the subject project is for a funding set-aside, the scope change (if requested) must meet the requirements of the particular set-aside under which the project has been selected for funding. If a cost change is requested, the total HSIP cost must not exceed the maximum allowed under this setaside in the original Call-for-Projects.

3. An updated BCR calculation using available crash data In the most recent 3 to S years Is required If:
(a). This Is a BCR project and the request includes a project scope change; or (b). This Is a BCR project; the request does not Involve a scope change however the HSIP portion of the cost Increase Is more than $100,000; (c). This Is a set-aside project; the total HSIP cost after the Increase will exceed the maximum of the total HSIP funding allowed for this set-aside and the agency would like to re-categorize this project and use a BCR to justify the cost Increase.

The updated BCR calculation must be stamped and signed by an active Callfornla-llcensed Professional Engineer (PE) or Traffic Engineer (TE). The HSIP Analyzer for calculating the BCR can be downloaded here., When an updated BCR calculation is required, the scope/cost change will be considered only if the updated the BCR is no less than the average BCR cutoff of the most recent three HSIP cycles, which Is 7 .7 currently.

January 21, 2025 Regular CC Mtg Page 283 of 518
Request Form for HSIP Time Extension, Scope/Cost Change Local Agency Certification:

I certify that the information provided in this request is accurate and correct. I understand that if the required information has not been provided this form will be returned. You may direct any questions to:

The person in responsible charge:

Name: lwendell Johnson, PE I
Signature*: ~ ~ ~---.,.-
Title: I Director of Public Works
Date: I Z,. ,, 7 , 2, ,-I
Phone Number: l(s.... _1_s_)B_9_B_-1_2_2_2 ____ ___.I
* Please print and sign if the digital signature does not work for you.

Caltrans District Local Assistance Engineer (DLAE) Acceptance:
(to be completed by the DLAE or assignee)
I have reviewed the information submitted on this request and recommend the HQ HSIP Managers to approve this request.

Name: I Dale Benson I Title: I Senior Trans~ortation Enginee~ Signature: z:;>a&,, 8~)f,,, Date: I 02/07/2024 I
Phone Number:! 213-266-3552 I
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AGENDA REPORT
POLICE DEPARTMENT 910 FIRST STREET, SAN FERNANDO, CA 91340 (818) 898-1250 WWW.SFCITY.ORG REVIEW: ☒ Finance Director ☒ Deputy City Manager ☒ City Manager To: Mayor Mary Mendoza and Councilmembers
From: Nick Kimball, City Manager
By: Fabian Valdez, Police Chief

Date: January 21, 2025
Subject: Consideration to Authorize Submittal of a Grant Application to the California Office of Traffic Safety – National Highway Traffic Safety Administration to Support Selective Traffic Enforcement Details
RECOMMENDATION:

It is recommended that the City Council authorize the preparation and submittal of the National Highway Traffic Safety Administration (NHTSA) Grant application for an amount up to $200,000 from the California Office of Traffic Safety (OTS).

BACKGROUND:

1. In 1966, Congress approved the National Highway Safety Act to provide federal funds for traffic safety, which is administered by the National Highway Transportation Safety Administration (NHTSA).

2. In 1967, California created the Office of Traffic Safety (OTS) to administer local grant funds received from the NHTSA. OTS is responsible for developing grant guidelines and goals as well as awarding funding to local agencies.

3. In December 2024, OTS announced their annual open enrollment for the 2025-2026 NHTSA Grant (Attachment “A”), which provides funding to local agencies to operate local selective traffic enforcement operations with the goal of reducing death, injuries, and economic losses resulting from traffic-related collisions. Past OTA grants received by the City are included as Attachment “B.”
ANALYSIS:

The OTS’s mission is to obtain and effectively administer the NHTSA grant funds to reduce deaths, injuries and economic losses resulting from traffic related collisions. Each year, the OTS administers NHTSA Grant Funds to reflect current areas of focus and details the planned use of January 21, 2025 Regular CC Mtg Page 287 of 518
Consideration to Authorize Submittal of a Grant Application to the California Office of Traffic Safety – National Highway Traffic Safety Administration to Support Selective Traffic Enforcement Details

federal funds. The OTS identifies problems, specific performance measures, proposed solutions, time frames and related information on existing priorities to mitigate traffic safety problems and address NHTSA’s priority areas, which include the following:
• Alcohol-Impaired Driving • Distracted Driving
• Drug-Impaired Driving • Emergency Medical Services
• Motorcycle Safety • Occupant Protection
• Police Traffic Services • Pedestrian and Bicycle Safety • Roadway Safety and Traffic Records • Public Relations, Advertising, and Marketing Programs
Equipment costing $5,000 or more, with a useful life of at least one (1) year, and that is required to carry out the grant activities, is also allowable within these priority areas.

Fiscal Year 2025-2026 Grant.

Staff recommends that the City apply for the NTSHA Grant to fund various traffic safety initiatives, including:
• DUI/DL Checkpoints: During DUI/DL checkpoints, officers stop vehicles at designated locations to check for signs of alcohol or drug impairment, ensuring that drivers are following DUI laws and possess a valid driver’s license. These checkpoints help deter impaired driving by increasing awareness and removing dangerous drivers from the road. • DUI Saturation Patrols: These patrols aim to detect and remove impaired drivers from the road, reducing the risk of alcohol and drug-related collisions. Officers actively look for signs of impaired driving and enforce DUI laws to improve road safety. • Pedestrian Safety Operations: These operations promote and encourage pedestrian safety with the goal of reducing pedestrian-related injuries and fatalities. These operations will include a combination of public service announcements and targeted enforcement of pedestrian right-of-way laws.
• Click It or Ticket: The Click It or Ticket Campaign promotes and encourages seat belt and child restraint usage with the goal of reducing traffic injuries and fatalities. Department operations include a combination of public service announcements and strict enforcement of seat belt laws. By emphasizing the message that seat belt use is not just a matter of personal choice but also a crucial aspect of public safety, the Click It or Ticket campaign will seek to reduce the number of injuries and fatalities resulting from traffic accidents.

January 21, 2025 Regular CC Mtg Page 288 of 518
Consideration to Authorize Submittal of a Grant Application to the California Office of Traffic Safety – National Highway Traffic Safety Administration to Support Selective Traffic Enforcement Details

• National Distracted Driving Awareness Month: During the month of April, the Police Department will raise awareness about the dangers of distracted driving with the goal of reducing accidents caused by distracted driving. Throughout the month, Police personnel will actively look for drivers who are in violation of the State’s Hands-Free Cell Phone Law.

They will also work to educate the public about the risks associated with texting, using smartphones, or engaging in other distractive activities while driving.

Fiscal Year 2024-2025 Grant.

The Department received a 2024-2025 OTS STEP Grant to conduct DUI/DUID checkpoints and saturation patrols, traffic enforcement, distracted driving, and pedestrian and/or bicycle operations. Fiscal Year 2024-2025 monies also fund DUI/DUID-related training and various equipment and supplies.

The Department received a 2024-2025 OTS TRIP Grant to purchase and implement an electronic crash reporting system. This system allows for more accurate and timely submissions to the Statewide Integrated Traffic Records System (SWITRS) and the Department’s Records Management System (RMS), and improves data quality, accessibility, and overall traffic safety management.

The first of two (2) OTS-funded DUI checkpoints was conducted on November 15, 2024. The following table shows the results of the operation:

DUI/DL Checkpoint
November 13, 2024
Vehicles Screened 695
DUI Arrests 2
Unlicensed/Suspended
License Citations
33 Stored Vehicles 4
Officers also conducted the first of two (2) grant-funded saturation patrols on December 13, 2024. During the operation, officers issued three (3) traffic citations and arrested three (3) individuals for alcohol or drug-related offenses.

The Department recommends requesting grant funds of up to $200,000 to support 2025-2026 activities in the NHTSA priority areas of Alcohol-Impaired Driving, Drug-Impaired Driving, Distracted Driving, Pedestrian Safety, and Occupant Protection. These areas were selected because NHTSA research has shown them to be effective in reducing traffic-related injuries and fatalities. The Police Department’s goal is to prevent serious injuries and fatalities from motor vehicle collisions, ensuring that all roadway users traveling through the City reach their destinations safely.

January 21, 2025 Regular CC Mtg Page 289 of 518
Consideration to Authorize Submittal of a Grant Application to the California Office of Traffic Safety – National Highway Traffic Safety Administration to Support Selective Traffic Enforcement Details

BUDGET IMPACT:

The NHTSA Grant from the State of California is a reimbursement grant and requires the Department to enter into an agreement with OTS to administer the grant. Reimbursements will only be made for costs that fall within the approved grant period and do not exceed the federally obligated funds outline in the agreement.

There will be no budget impact on the Fiscal Year 2024-2025 Adopted Budget to authorize the submittal of the NHTSA grant application and there is no need to appropriate funds at this time.

This is the initial step in approving funding from the State of California. If the City is awarded the grant, staff will return to the City Council with a resolution to formally accept the award and appropriate funds.

CONCLUSION:

It is recommended that the City Council authorize the submittal of a grant application to the California Office of Traffic Safety.

ATTACHMENT:

A. California Office of Traffic Safety – National Highway Traffic Safety Administration Announcement
B. Prior OTS Grants Received by the City
January 21, 2025 Regular CC Mtg Page 290 of 518
From: Timothy Weisberg
To: Jennifer Spatig
Subject: Apply Now: OTS Accepting 2026 Grant Applications Date: Wednesday, December 11, 2024 11:31:13 AM
You don't often get email from [email protected]. Learn why this is important CAUTION: External Sender
This email originated from outside of the organization. Exercise caution when clicking on links or opening attachments unless you recognize the sender and know the content is safe. Please report all suspicious emails to the City's IT Division.

Dear Traffic Safety Partners,
The California Office of Traffic Safety (OTS) is now accepting grant applications for the 2026 Federal Fiscal Year funding!
To apply for a grant, visit the OTS website Grant Electronic Management System - Apply For A Grant.

Applications are submitted electronically and due by January 31, 2025.

The OTS is hosting a series of meetings in December and January where you can learn more about our grant programs and applying for the Federal Fiscal Year 2026 funding.

Workshops dates and registration information is below.

December 11th from 9:00am-11:00am – San Bernardino
(Rancho Cucamonga) – Register Grant Application Meeting Registration
December 11th from 1:00pm-3:00pm – Orange (Santa Ana) – Register Grant Application Meeting Registration
December 12th from 1:30pm-3:30pm – Los Angeles
(Alhambra) – Register Grant Application Meeting Registration December 17th from 1:30pm-3:30pm – Sacramento (Rancho
Cordova) – Register Grant Application Meeting Registration December 18th from 1:30pm-3:30pm – Stanislaus (Modesto) – Register Grant Application Meeting Registration
ATTACHMENT "A"
January 21, 2025 Regular CC Mtg Page 291 of 518
December 18th from 1:00pm-3:00pm – Butte (Chico) –
Register Grant Application Meeting Registration
December 19th from 9:00am-11:00am – Fresno –
Register Grant Application Meeting Registration
December 19th from 8:30am-10:30am – Napa –
Register Grant Application Meeting Registration
December 19th from 1:00pm-3:00pm – Alameda (Fremont) –
Register Grant Application Meeting Registration
January 15th from 1:00pm-3:00pm – San Diego –
Register Grant Application Meeting Registration
January 16th from 9:00am-11:00am – Riverside –
Register Grant Application Meeting Registration
January 16th from 1:30pm-3:30pm – Los Angeles (Long Beach) – Register Grant Application Meeting Registration
For more application information,
visit https://www.ots.ca.gov/grants/gems/or call (916) 509-3030.

We look forward to connecting and helping improve traffic safety for your community.

Wishing you all a wonderful holiday season and best wishes for the New Year.

Thank You,
The California Office of Traffic Safety
January 21, 2025 Regular CC Mtg Page 292 of 518
ATTACHMENT “B”
Prior OTS Grants Received by the City of San Fernando

1. On October 21, 2019, the City Council accepted OTS grant funds in the amount of $40,000 to reimburse overtime and equipment for the Selective Traffic Enforcement Program (STEP) grant, to support Driving Under the Influence (DUI) interventions and driver’s license checks to enhance safety.

2. On October 19, 2020, the City Council accepted OTS grant funds in the amount of $33,000 to reimburse overtime and equipment for the STEP grant, focused on DUI patrol.

3. On December 7, 2020, the City Council accepted OTS grant funds in the amount of $19,900 to conduct Minor Decoy and Shoulder Tap operations at establishments that sell alcohol with the goal of reducing the availability of alcohol to local youth by enforcement and to educate local merchants.

4. On November 15, 2021, the City Council accepted OTS grant funds in the amount of $55,000 to reimburse overtime and equipment for the STEP grant, focused on DUI patrol.

5. On September 16, 2024, the City Council accepted OTS STEP grant funds in the amount of $74,000 for DUI/Driver’s License (DL) checkpoints, DUI Saturation Patrols, Traffic Enforcement, Distracted Driving Enforcement, Bicycle and Pedestrian Safety Enforcement, Traffic Safety presentations, and supplies and equipment to assist in DUI prevention and traffic enforcement efforts.

6. On September 16, 2024, the City Council accepted OTS Traffic Records Improvement Project (TRIP) Grant funds in the amount of $44,400 to purchase and implement electronic crash reporting software.

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AGENDA REPORT
POLICE DEPARTMENT 910 FIRST STREET, SAN FERNANDO, CA 91340 (818) 898-1250 WWW.SFCITY.ORG REVIEW: ☒ Finance Director ☒ Deputy City Manager ☒ City Manager To: Mayor Mary Mendoza and Councilmembers
From: Nick Kimball, City Manager
By: Fabian Valdez, Police Chief
Date: January 21, 2025
Subject: Consideration to Authorize the Submittal of a Grant Application to the California Highway Patrol – Cannabis Tax Fund Grant Program to Support Selective Traffic Enforcement Details
RECOMMENDATION:

It is recommended that the City Council authorize the preparation and submittal of a grant application for an amount up to $250,000 from the California Highway Patrol (CHP) for the Cannabis Tax Fund Grant Program for the Fiscal Year (FY) 2025-2026 to help address the dangers of impaired driving involving alcohol and/or drugs.

BACKGROUND:

1. With the passage of Proposition 64, enacted in 2018, the Control Regulate, and Tax Adult Use of Marijuana Act (AUMA), California voters mandated the state set aside funding for CHP to award grants to local governments in reducing impaired driving crashes, increasing public awareness surrounding the dangers of impaired driving, and making California’s roadways a safer place to travel. Proposition 64 allocated approximately $13 million, with a $500,000 cap per Grant Application, for eligible small and mid-size law enforcement organizations/agencies, with 100 employees or less, with the primary function of enforcing traffic laws. This includes responding to calls, making arrests, and issuing citations, pursuant to the California Penal Code, California Vehicle Code, and California Health and Safety Code.

2. In December 2024, the CHP announced the 2025-2026 Cannabis Tax Grant Fund Program Request for Applications (RFA).

ANALYSIS:

The Cannabis Tax Fund Grant Program (CTFPG), which was created through AUMA, focuses on local community-based activities that shift public perspectives and expand the number of law enforcement activities utilized to help mitigate alcohol and drug-impaired driving. The Cannabis Tax Fund Grant provides for funding for Driving Under the Influence (DUI) Alcohol and Driving Under the Influence of Drugs (DUID) enforcement, related enforcement activities, public January 21, 2025 Regular CC Mtg Page 297 of 518
Consideration to Authorize the Submittal of a Grant Application to the California Highway Patrol – Cannabis Tax Fund Grant Program to Support Selective Traffic Enforcement Details

outreach and education, equipment, and training for personnel to Departments that are awarded the grant.

Fiscal Year 2025-2026 Grant.

The Department remains committed to mitigating impaired driving in the community and, if authorized by the City Council, will seek to expand its efforts through the 2025-2026 CHP Cannabis Grant. Continued grant funding will enable the Department to further enhance its enforcement activities, public outreach, and officer training to continue addressing the challenges posed by drug and alcohol-impaired driving.

The performance period for the 2025-2026 CTGFP grant is one (1) year (July 1, 2025 through June 30, 2026). As with the previous grant application, departments are required to outline in their grant application the activities, equipment, training, public outreach and education, and training for their personnel they would like funded by this grant. The funded activities and associated costs covered by this grant include:
• Increased DUI and DUID enforcement efforts such as DUI/DUID Saturation Patrols and DUI/DUID Sobriety Checkpoints.
• Drug Evaluation and Classification Program Courses such as Standard Field Sobriety Test (SFST) Training, Advanced Roadside Impaired Driving Enforcement (ARIDE) Training, Drug Recognition Expert (DRE) Training and other trainings that help increase the law enforcement personnel’s knowledge in detecting and removing impaired drivers from the roadway.
• Registration fees for approved conferences directly related and necessary to complete grant funded activities included in the project.
• General prevention education and community outreach designed to educate the public about the dangers of impaired driving such as:
1) Presentations to high school and/or college students that directly focus on “Drive High=DUI” or other campaign messages against impaired driving.

2) Educational and outreach materials such as brochures and pamphlets. 3) Social Media costs associated with DUI/DUID education/prevention and community outreach.
• Grant funding may include non-expendable, tangible, property having a normal useful life of more than one (1) year and an acquisition cost of at least $5,000. Equipment must be directly related and necessary to complete grant-funded activities included in the project for example, DUI Checkpoint Message Boards, DUI Checkpoint Traffic Signs, Preliminary January 21, 2025 Regular CC Mtg Page 298 of 518
Consideration to Authorize the Submittal of a Grant Application to the California Highway Patrol – Cannabis Tax Fund Grant Program to Support Selective Traffic Enforcement Details

Alcohol Screening (PAS) Devices, Replacing outdated or worn supplies, such as reflective traffic vests, flashlights, and power generators, etc.

Specific activities must be approved by the CHP prior to grant funding approval.

Data gathered by the Department showed that DUI collisions declined in 2024 compared to prior years. 2024 was the first year the Department conducted DUI Checkpoints and targeted DUI enforcement since 2020. (See Table Below)
Year DUI-Related Collisions
2021 26
2022 27
2023 26
2024 14
Reducing the Incidents of DUI-related Collision.

The Department recognizes the effectiveness in reducing DUI/DUID incidents through DUI/DUID Enforcement, Checkpoints, DUI/DUID Saturation Patrols, education, and community outreach as pivotal in lowing incidents of DUI/DUID. DUI/DUID enforcement plays a crucial role in reducing incidents of DUI and improving road safety. The effectiveness of DUI/DUID enforcement can vary based on several factors, including the intensity and consistency of enforcement measures and public awareness campaigns. Below are some ways DUI/DUID enforcement can be effective:

Deterrence: Visible and strict DUI/DUID enforcement, such as sobriety checkpoints and increased police patrols, can act as a deterrent. Knowing that law enforcement is actively looking for impaired drivers may discourage individuals from getting behind the wheel while under the influence of alcohol or drugs.

Public Awareness: Public awareness campaigns about the dangers of impaired driving and the potential consequences can reinforce the message that driving under the influence is unacceptable. These campaigns can help change societal attitudes and norms surrounding impaired driving.

Community Involvement: Involving the community in DUI/DUID prevention efforts, such as through community programs, partnerships with local businesses, and educational initiatives, can enhance the effectiveness of enforcement measures.

Equipment: Equipment such as breathalyzers, narcotics analyzers, and field sobriety tools, aid in the detection of impaired driving and narcotics violations.

Fiscal Year 2024-2025 Grant Update.

The Department received 2024-2025 CTFPG funds in June 2024, and has used grant funds to conduct DUI/DUID Checkpoints and Saturation Patrols, and to purchase four (4) Intoximeter breathalyzer test kits and four (4) SoToxa oral fluid mobile analyzer systems.

January 21, 2025 Regular CC Mtg Page 299 of 518
Consideration to Authorize the Submittal of a Grant Application to the California Highway Patrol – Cannabis Tax Fund Grant Program to Support Selective Traffic Enforcement Details

Checkpoint Results
The first of two (2) checkpoints was conducted on August 31, 2024. Results of the checkpoint are highlighted in the following chart:

SFPD DUI/DUID Checkpoint
August 31, 2024
Vehicles Through Checkpoint 854
Vehicles Screened 508
Reports Taken 38
Unlicensed Driver 35
Arrests 3
Cannabis Arrest 1
Alcohol Related 2
Pursuits 1
FSTs Conducted 6
Saturation Patrol Results
The Department conducted the first of two (2) grant-funded DUI/DUID Saturation Patrols Friday, October 25, 2024. During the patrol, officers issued one (1) citation for a passenger with an open container of alcohol, and arrested one (1) driver for DUID and one (1) driver for DUI.

Continuing DUI Enforcement Efforts.

The Department is committed to maintaining and expanding its efforts to reduce DUI/DUID incidents in San Fernando. Building on past success, the Department seeks to continue these enforcement activities to ensure public safety.

To support these efforts, staff recommends that the City Council authorize the Department to submit a grant application to fund the following efforts, activities, and equipment to decrease the incidents of DUI/DUID in San Fernando.
1) At least two (2) DUI/DUID Checkpoints during the grant period. 2) At least two (2) saturation patrols during the grant period. 3) Materials for public outreach and education.
4) The costs associated with social media outreach to include staff time. 5) Purchase of one (1) Handheld Narcotics Analyzer.
6) Send at least two (2) officers to DUI investigation certification training (e.g., Standard Field Sobriety Tests (SFST) Training, Advanced Roadside Impaired Driving Enforcement (ARIDE) Training, or Drug Recognition Expert (DRE) Training).

The Department recommends that up to $250,000 be requested for the execution of the aforementioned activities covered by the grant.

January 21, 2025 Regular CC Mtg Page 300 of 518
Consideration to Authorize the Submittal of a Grant Application to the California Highway Patrol – Cannabis Tax Fund Grant Program to Support Selective Traffic Enforcement Details

BUDGET IMPACT:

The Cannabis Tax Fund Grant Program from California Highway Patrol is a reimbursement grant and requires the Police Department to enter into an agreement with CHP to administer the grant.

Disbursement of grant funds occurs on a reimbursement basis only for costs incurred during a reporting period and is contingent upon the grantee complying with all grant requirements and appropriation of sufficient funds.

Should the City be awarded this grant, it will subsidized the cost of hours worked above and beyond normal work duties related to DUI Saturation Patrols, DUI Checkpoints, trainings related to impaired driving, and backfill for staff attending trainings. In addition, the grant will cover the cost of travel associated with approved training, conferences, seminars, and workshops. Eligible expenses may include, but are not limited to mileage or fuel expenses, hotel accommodations, and parking fees. The grant will also cover the cost of equipment related to the handheld narcotics analyzer, registration fees for approved conferences, educational/outreach material (e.g., brochures, pamphlets) and social media costs.

There will be no budget impact on the Fiscal Year 2024-2025 Adopted Budget to authorize the submittal of the Cannabis Tax Fund Grant Program grant application and there is no need to appropriate funds at this time. This is the initial step in approving funding from the California Highway Patrol. If the City is awarded the grant, staff will return to City Council with a resolution to formally accept the award and appropriate funds.

CONCLUSION:

It is recommended that the City Council authorize the submittal of a grant application to the California Highway Patrol for the CHP Cannabis Tax Fund Grant Program. If grant funds are awarded, authorize the City Manager or his designee to take all related action to execute the grant.

ATTACHMENT:

A. Cannabis Tax Fund Grant Program Announcement
B. Prior CHP Grants Received by the City
January 21, 2025 Regular CC Mtg Page 301 of 518

CANNABIS TAX FUND GRANT PROGRAM

REQUEST FOR APPLICATION (RFA)
Grant Opportunity
Law Enforcement
Eligible Grant Applicants
Small and Mid-Size Law Enforcement Organizations/Agencies Small-Size: 100 Employees or Less
Mid-Size: 500 Employees or Less
Project Performance Period
July 1, 2025, through June 30, 2026
ATTACHMENT "A"
January 21, 2025 Regular CC Mtg Page 302 of 518

This Request for Application (RFA) provides specific Grant Opportunity information for the Cannabis Tax Fund Grant Program (CTFGP) 2025-2026 Grant Cycle, including important deadlines and details. To ensure all eligibility requirements are met for successful participation in the CTFGP, please review the California Code of Regulations (Title 13, Division 2, Chapter 13) and other CTFGP information posted on the California Highway Patrol’s (CHP) website:
https://www.chp.ca.gov/programs-services/programs/cannabis-tax-fund-grant-program.

Important Dates
Activity Date
Grant Workshop January 7, 2025
Grant Application Submission Period January 8, 2025 – February 23, 2025 Grant Application Submission Deadline February 23, 2025, 5:00pm Pacific Time Grant Application Review February – May 2025
Award Announcements May – June 2025
Start of Project Performance Period July 1, 2025
Project Performance Period July 1, 2025 – June 30, 2026 Funding Requirements
A Grant Applicant may only submit one Grant Application, per Grant Opportunity, and shall only request the amount of grant funds necessary to complete the Project within the Project Performance Period and within the local community served by the applying agency. Activities outside the jurisdiction but within the surrounding area(s) of the applying agency may be considered on a case-by-case basis with Cannabis Grants Unit (CGU) approval.

Grant funds shall be used to implement new activities or augment existing funds, which expand current activities. Grant funds shall not replace (supplant) any federal, state and/or local funds that are appropriated or earmarked for the same purpose and are routine and/or existing state and local expenditures. Supplanting is the deliberate reduction in the amount of federal, state, or local funding appropriated to an existing program or activity because grant funds are awarded for the same purpose. It is the responsibility of the Grant Applicant to ensure supplanting does not occur.

Match Requirements
This Grant Opportunity does not require matching funds.

Project Costs
Estimated Project costs shall support CTFGP grant-funded Project activities that help address impaired driving and are directly related to the scope of work identified in the Grant Application. To be permissible, Project costs must be reasonable, necessary, and expended according to the CTFGP policies, procedures, and regulations.

Projects are required to have a realistic and prudent budget that avoids unnecessary expenditures unrelated to the Project activities. Final determination of eligibility and award shall be made by the CGU and approved within the Grant Agreement.

January 21, 2025 Regular CC Mtg Page 303 of 518

Please refer to Annex A for ineligible expenses.

Project Performance Period
One Year – July 1, 2025, through June 30, 2026
Eligible Grant Applicants
Small-Size Law Enforcement Organizations/Agencies: 100 employees or less Mid-Size Law Enforcement Organizations/Agencies: 500 employees or less Small and Mid-Size Law Enforcement Organizations/Agencies, with the primary function of enforcing traffic laws, which includes responding to calls, making arrests, and issuing citations, pursuant to the California Penal Code, California Vehicle Code, and California Health and Safety Code.

Project Funding
Available Project funding is approximately $13 million, with a $500,000 cap, per Grant Application. The Grant Applicant must provide strong justification, measurable goals, and an immediate need for all requested budget items, as part of the Project.

Project Requirements
Requested services, equipment, and supplies shall be in direct support of grant-funded Project activities. Law Enforcement Projects shall include at least one Project activity and focus on one or more of the following areas:
• Increase driving under the influence (DUI)/driving under the influence of drugs (DUID) enforcement efforts (ex: DUI Saturation Patrols, DUI Checkpoints) • Drug Evaluation and Classification (DEC) Program courses (ex: SFST Training, ARIDE Training, DRE Training), and other trainings to help increase the knowledge of law enforcement personnel in detecting and removing impaired drivers from the roadway • General prevention education and community outreach designed to educate the public about the dangers of impaired driving (ex: presentations to high school and/or college students, with a direct focus on Drive High = DUI, or another campaign message against impaired driving)
If engaging in CTFGP grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the applicant does not have primary traffic jurisdiction, the applicant should consult with the agency having primary traffic jurisdiction.

If the Project includes limited, education-based activities, in conjunction with other enforcement-related activities/efforts, then Law Enforcement Organizations/Agencies should apply for this Law Enforcement Grant Opportunity.

If the Project, in its entirety, solely focuses on an innovative, education-based program for local communities, then Law Enforcement Organizations/Agencies should apply for the Education Grant Opportunity.

January 21, 2025 Regular CC Mtg Page 304 of 518

Eligible Project Cost Categories
Personnel
Costs may include compensation for wages, such as overtime, and benefits (annual leave and sick leave) for work directly related to, and consistent with, the Project. Personnel hours shall be awarded based on the number of CTFGP grant-funded Project activities approved by CGU.

To be eligible for reimbursement, personnel services must occur within the Project Performance Period.

Eligible expenses may include, but are not limited to:
• Hours worked on Project activities above and beyond normal work duties, including DUI Saturation Patrols and DUI Checkpoints
• Attend or instruct approved trainings related to impaired driving • Backfill for staff attending trainings
Travel
Costs may include travel associated with approved in-state and out-of-state Project-related conferences, seminars, workshops, and trainings. The most economical mode of travel, in terms of direct expenses to the Project, must be used. Out-of-state travel is only allowed in exceptional situations. To be eligible for reimbursement, travel must occur within the Project Performance Period.

Eligible expenses may include, but are not limited to:
• Mileage (based on current State rate) or fuel expenses (rental vehicles only) • Hotel accommodations
• Commercial airline fares
• Parking fees
• Bridge tolls and/or taxi or bus fares
For maximum allowed per diem rates, including meals and lodging, please visit the California Department of Human Resources (CalHR) website:
https://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx.

Equipment
Costs may include non-expendable, tangible, personal property having a normal useful life of more than one year, and an acquisition cost of at least $5,000 (ex: four identical assets, which cost $1,250 each, for a total of $5,000, are not considered an equipment purchase). Equipment shall be directly related and necessary to complete grant-funded activities included in the Project. Equipment should be purchased at the beginning of the Project Performance Period to ensure it is utilized when completing corresponding Project activities. If requesting equipment, the Project shall contain a correlating CTFGP grant-funded Project activity (ex: Message Board for DUI Checkpoints). To be eligible for reimbursement, equipment must be purchased and January 21, 2025 Regular CC Mtg Page 305 of 518

received within the Project Performance Period. If requesting a vehicle, the requestor shall only request to outfit the vehicle with the standard equipment similar to the rest of the vehicle fleet.

Consultants/Contracts
Costs may include professional services necessary to carry out Project activities, including goals and deliverables, that are clearly outlined in the Grant Application. A copy of the Contract and/or Scope of Work must be submitted to and approved by the CGU prior to commencement of work. To be eligible for reimbursement, Consultants/Contracts services must occur within the Project Performance Period.

Other Direct Costs
Costs may include operational costs. Other Direct Costs shall be directly related and necessary to complete CTFGP grant-funded activities included in the Project. Other Direct Costs should be purchased at the beginning of the Project Performance Period to ensure they are utilized when completing corresponding Project activities. To be eligible for reimbursement, Other Direct Costs must be purchased and received within the Project Performance Period.

Eligible expenses may include, but are not limited to:
• Equipment with a single unit acquisition cost under $5,000 (ex: Preliminary Alcohol Screening [PAS] devices)
• Registration fees for approved conferences
• Educational/outreach materials (ex: brochures, pamphlets) • Social media costs
Additional Information
References
• Revenue and Taxation Code Section 34019
• California Code of Regulations, Title 13, Division 2, Chapter 13 For additional questions, please contact the Cannabis Grants Unit at (916) 843-4360 or via email at [email protected].

January 21, 2025 Regular CC Mtg Page 306 of 518

ANNEX A
Ineligible Expenses for
Law Enforcement Grant Opportunity
Items
Building/Facility Construction
Chemical/Forensic Investigation Equipment (Pendar, BERLA, Gemini Chemical Identification Analyzer)
Entertainment
Equipment Giveaways
Equipment-Only Projects (Must Have Correlating CTFGP Grant-Funded Project Activity) Expenditures Outside the Project Period
Facility Rental
Food During Enforcement Efforts (ex: Pizza at DUI Checkpoint) Frozen Positions
Full Salary Positions
Gifts
Highway Construction, Maintenance, Design
Land
Law Enforcement Items (Spike Strips, Lidar/Radar, License Plate Reader, Flock Cameras, e-site Printers, Station-Related Software)
Liability Insurance
Lobbying Costs
Magnetic Decals (CTFGP Funded Vehicles)
Mileage and Toll Costs (When Using Agency Vehicles for Travel) Office Furniture and Fixtures
Overhead Costs (ex: Microsoft Office Software, Cellular Plans, Vehicle Insurance & Maintenance) Personnel Time for Conference, Seminar, or Workshop Attendance Professional Fees (ex: Membership Dues)
Supplanting
SWAT/Armored Vehicles
Traffic Investigation Equipment (ex: 3D Scanners)
Unapproved Trainings, Equipment, and or Other Direct Costs Uniforms
Utilities
Weapons
Vehicle Operations Training
**The items listed above are provided as examples and do not constitute all ineligible costs** January 21, 2025 Regular CC Mtg Page 307 of 518
ATTACHMENT “B”
Prior CHP Grants Received by the City of San Fernando

1. On January 16, 2024, the City Council authorized the preparation and submittal of a grant application for certain grant related activities from the California Highway Patrol for the FY 2024-25 CHP Cannabis Tax Fund Grant.

2. On February 23, 2024, the Police Department submitted a grant application requesting funds in the amount of $103,412.20.

3. On June 6, 2024, the Police Department received notice of award from the CHP January 21, 2025 Regular CC Mtg Page 308 of 518
January 21, 2025 Regular CC Mtg Page 309 of 518
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Intentionally
Left Blank
January 21, 2025 Regular CC Mtg Page 310 of 518

AGENDA REPORT
POLICE DEPARTMENT 910 FIRST STREET, SAN FERNANDO, CA 91340 (818) 898-1250 WWW.SFCITY.ORG REVIEW: ☒ Finance Director ☒ Deputy City Manager ☒ City Manager To: Mayor Mary Mendoza and Councilmembers
From: Nick Kimball, City Manager
By: Fabian Valdez, Police Chief
CJ Chiasson, Police Sergeant

Date: January 21, 2025
Subject: Consideration to Approve Public Release and Circulation of Request for Qualifications for Vehicle Towing and Secure Storage Services RECOMMENDATION:

It is recommended that the City Council approve the release and circulation of a Request for Qualifications (RFQ) for Vehicle Towing and Secure Storage Services (Attachment “A”).

BACKGROUND:

1. On March 24, 2014, the City Council awarded B&W Tow a Franchise Agreement (Contract No. 1740) for exclusive Vehicle Towing and Storage Services for the City (Attachment “B”). The initial term of the contract was five (5) years, expiring on March 29, 2019. Section 2.5.2 provided for an additional five-year extension of the Agreement with 120-day written extension request from the Franchisee and City Council approval.

2. On November 13, 2018, the Police Department and the City Manager received an extension request from Black & White Towing, Inc. requesting an additional five-year term pursuant to Section 2.5.2. of Contract No. 1740.

3. On February 19, 2019, staff requested City Council approval of a five-year extension in accordance with Section 2.5.2 of the Franchise Agreement. The City Council directed staff to issue a Request for Qualifications (RFQ) for Vehicle Towing and Storage Services.

4. On March 13, 2019, the City extended the Franchise Agreement for Vehicle Towing and Storage Services through December 31, 2019 (Contract No. 1740 (a)).

5. On September 26, 2019, the City released an RFQ for vehicle towing and storage service and advertised it in the local newspaper and posted it on the City’s website and received three (3) proposals.

January 21, 2025 Regular CC Mtg Page 311 of 518
Consideration to Approve Public Release and Circulation of Request for Qualifications for Vehicle Towing and Secure Storage Services

6. Following a review of the proposals, staff recommended – and City Council approved – a five-year contract with Black & White Towing, Inc. for vehicle towing and storage services (Contract No. 1937), which expired on December 12, 2024.

7. On December 2, 2024, the City Council approved Contract No. 1937(a) extending the term through June 12, 2025, and directed staff to return with a revised RFQ that included increasing the distance of potential applicants, while maintaining response times, and to ensure that cost-effectiveness was considered in selection process. All directed changes were added to the 2024 RFQ.

ANALYSIS:

A franchise tow company serves as a reliable service provider for a police department, providing efficient towing and impound services for vehicles involved in accidents, traffic violations, or criminal investigations. With a franchise tow contract, a police department is able to set and enforce strict performance, safety, and legal standards. A reliable tow contractor aids in maintaining public safety by promptly removing vehicles that obstruct traffic or pose risks, supports law enforcement operations by securely storing impounded vehicles or evidence, and simplifies the vehicle retrieval process for owners.

The City’s current franchise tow agreement with Black & White Towing, Inc. (B&W Tow) expired on December 12, 2024 and a six-month extension was granted by the City Council on December 2, 2024, to ensure uninterrupted towing and storage services while staff modified the RFQ per City Council direction.

In an effort to invite additional competition for the RFQ, the City Council directed staff to expand some of the minimum qualifications for prospective bidders, including increasing the distance for potential applicants and to take cost-effectiveness for the customer into consideration in the selection process. The following changes were assessed and then incorporated into the RFQ as requested:
• Primary Storage Lot: The 2019 RFQ required that the primary storage lot be no more than five (5) miles from the Police Department. This has been changed to allow for up to ten (10) milesfor the December 2024 RFQ. Staff does not recommend increasing beyond this distance because it would adversely affect the proposer’s response times. • Secondary Storage Lot: The 2019 RFQ required all secondary storage lots to be within five (5) miles from the Police Department. This has been changed to allow for up to ten (10) miles for the December 2024 RFQ. Staff does not recommend increasing this distance because it would place an undue burden on the community to retrieve stored and impounded vehicles.

January 21, 2025 Regular CC Mtg Page 312 of 518
Consideration to Approve Public Release and Circulation of Request for Qualifications for Vehicle Towing and Secure Storage Services

• City Vehicles: The 2019 RFQ required no-cost towing services for all city-owned vehicles within a five (5) mile radius. This has been changed to a fifty (50) mile radius for the December 2024 RFQ. Staff recommends keeping this at 50 miles because this allows for towing services for city-owned vehicles when away from the city within the normal distances traveled by staff in any given day.
• Removal Charges: The 2019 RFQ required vehicles to be taken to any place the owner or driver of the vehicle directs, within five (5) road miles of the location of the vehicle, and charges for towing beyond five (5) miles will be based on an hourly rate. This has been increased to ten (10) miles for the December 2024 RFQ and therefore, charges for towing beyond ten (10) miles will be based on an hourly rate. Staff recommends staying at 10 miles because this is the maximum reasonable distance for a flat rate before the hourly rate would apply.
• Evaluation of Qualifications: The December 2024 RFQ included qualification category number 13, which requires impound policies and practices and impound rates that facilitate the speedy and cost-effective return of vehicles to persons whose cars have been impounded so as to minimize the accrual of costly impound fees. No further change was made to this section.
• Screening, Selection and Award: The December 2024 RFQ has changed the screening and selection process to allow points for areas where proposers either, meet or exceed the qualifications. Qualification points will be assigned as follows: 0 for not meeting qualifications, 1 for meeting qualifications, and 2 for exceeding qualifications. No further change was made to this section.

If approved by the City Council, the new RFQ will prioritize service quality, response times, and cost effectiveness while providing for a thorough and fair selection of the best possible service at the most reasonable cost to the community.

BUDGET IMPACT:

There is no budget impact associated with the release of the Request for Qualifications for Vehicle Towing and Secure Storage Services. Revenues generated from Franchise Fees, Release Fees and Administrative Fees will continue through the duration of the extension period.

CONCLUSION:

Staff recommends that the City Council approve the release and circulation of a Request for Qualifications for Vehicle Towing and Secure Storage Services.

ATTACHMENT:

A. Request for Qualifications for Vehicle Towing and Secure Storage Services January 21, 2025 Regular CC Mtg Page 313 of 518
ATTACHMENT "E"

NOTICE INVITING BIDS
Notice is hereby given that sealed proposals will be received by the City of San Fernando, California, for furnishing the following:

VEHICLE TOWING & SECURE STORAGE SERVICES
in strict accordance with the Specifications on file in the office of the CITY CLERK, 117 Macneil Street, San Fernando, California, 91340. Copies of specifications and proposal documents may be obtained from the City’s website at http://www.ci.san-fernando.ca.us.

One (1) original, unbound, signed in blue ink; three (3) printed and bound copies; and one (1) electronic copy (PDF) via CD or flash drive of the proposal must be submitted to the CITY CLERK at CITY HALL, 117 Macneil Street, San Fernando, California, 91340, not later than 5:30 p.m. on Monday, October 21, 2019Friday, February 28, 2025. Any bidder may withdraw their proposal, without obligation, at any time prior to the scheduled closing time for receipt of proposals. A withdrawal will not be effective unless made personally or by telephonic notification received prior to the closing date. Proposals may later be referred to the City Council for appropriate action. The City reserves the right to reject any or all proposals as the best interests of the City may dictate.

By:

Elena ChavezJulia Fritz, City Clerk
Published in The San Fernando Sun on October 2, 2019January 30, 2025.

ATTACHMENT "A"
January 21, 2025 Regular CC Mtg Page 314 of 518

REQUEST FOR QUALIFICATIONS
For

VEHICLE TOWING & SECURE

STORAGE SERVICES
September 2019
January 30, 2025
City of San Fernando
Police Department
910 FIRST STREET
SAN FERNANDO, CA 91340
All Statement of Qualifications (SOQs) must be submitted in a sealed envelope and received by the City Clerk ’ s Office at San Fernando City Hall on or before Monday, October 21, 2019Friday, February 28, 2025 at 5:30 PM with the following notation:

Statement of Qualifications for
Vehicle Towing & Secure
Storage Services
City of San Fernando
January 21, 2025 Regular CC Mtg Page 315 of 518

REQUEST FOR QUALIFICATIONS
(RFQ)
For

VEHICLE TOWING & SECURE

STORAGE SERVICES
Purpose and Request for Qualifications:

The City of San Fernando (“City”) is located in the San Fernando Valley region of Los Angeles County and spans 2.4 square miles. The City incorporated on August 31, 1911 and today is home to around 25,000 residents. San Fernando is a general law city operating under the City Manager form of government.

The City invites qualified vendors to submit proposals detailing their professional skills and qualifications in the field of vehicle towing and secure storage services. The selected franchise tow operator (Franchisee) will be responsible for providing immediate response and towing of vehicles when such service is called for by the San Fernando Police Department (“Police Department). The towing services include, but are not limited to, towing of vehicles involved in accidents or disabled by other causes; removal of vehicles that impede the flow of traffic; impounding of vehicles for evidence; removal and storage of vehicles abandoned in public places or on private property; towing of police department and or other City vehicles from a wide geographical area; and for any other reason within the jurisdiction of the police department. In addition, the storage requirements include storing of vehicles that have been towed in a safe, efficient and protected manner for extended periods of time as required.

The selected Franchisee will enter into a formal operating agreement (the “Franchise”) with the City. As part of the RFQ for Vehicle Towing and Secure Storage Services (“the RFQ”), City staff has developed specifications that take in to consideration, amongst other things, community’s convenience, the City of San Fernando's needs, the police department's efficiency, and the towing service's responsiveness.

The Franchise awarded to the firm with the selected proposal will be for a five-year term. The agreement shall be for an initial period of five (5) years, with an option to extend (at the City’s discretion) for five (5) additional years administratively.

SOQ Submittal Requirements:

This RFQ is intended to assess each Franchisee’s general capabilities as they would apply to the City’s needs and to evaluate specific responses to the expected scope of work. Each Franchisee January 21, 2025 Regular CC Mtg Page 316 of 518
must address each of the following items in their response to this RFQ.

1. State the legal name of your firm, its address and telephone number.

2. Describe your firm's background and experience and the structure of your organization (i.e., individual, partnership, corporation, joint venture, etc.).

3. Describe the proposed General Manager's background and experience (where applicable).

4. Provide general contact information including the name of the proposed General Manager, the office from which he/she will work, address, phone, FAX and e-mail address.

5. Provide a minimum of one and a maximum of five references for similar contracts performed within the past five years paying particular attention to those in San Fernando and its vicinity.

Include the address, current phone number, name and title of the person to be contacted.

6. Provide a list of public agencies (including the City of San Fernando) that required your firm to perform similar services during the preceding five years.

7. Describe your firm's approach to the scope of work.

8. Describe your firm's ability to perform the requested services as outlined in Section E of this RFQ.

9. Complete and provide the forms attached to this RFQ as Attachment A (Tow Listing Application), Attachment B (Civil Litigation History/Certification), Attachment C (False Claims Act Certification Form).

Format for Proposal Submittal:

A complete qualifications package submittal shall consist of the following:
(1) One original, unbound, signed in blue ink;
(3) Three printed and bound copies;
(1) One electronic copy (PDF) via CD or flash drive;
Each section should be separated by divider pages that are tabbed, colored or of heavier stock.

ALL sections must have a response in order for the submittal to be deemed valid.

All submittals must be received by the City Clerk’s Office on or before Monday, October 21, 2019 at 5:30 PM. Any proposal received after the above due date will not be considered and will not be returned. No faxed submittals will be accepted.

January 21, 2025 Regular CC Mtg Page 317 of 518
The City does not recognize the US Postal Service, or any other organization, as its agent for purposes of accepting SOQs. All SOQs received after the deadline will be rejected and returned unopened.

No extensions will be granted. All SOQs will become the property of the City of San Fernando and will be made available for public inspection after an award is made or all SOQs are rejected.

Proposals must be prepared simply and economically, providing a straightforward and concise description of methodology and approach to satisfy the requirements of the RFQ. Emphasis should be on completeness and clarity of content with sufficient detail to allow for accurate evaluation and comparative analysis.

The City reserves the right to reduce or revise elements of the scope of work, or to amend or modify the qualifications requirements and to reject any and all qualifications, or to solicit additional qualifications should qualifications be considered by the City to be inadequate or not cost effective relative to the services that are sought. In addition, The City reserves the right to withdraw the RFQ at any time without prior written notice or to extend the due date. No representation is made hereby that any contract will be awarded pursuant to the RFQ or otherwise.

The City shall not be held liable for any expenses that a company incurs in the preparation of the qualifications, nor should such expenses be included in or incorporated into the cost schedule proposed. The City reserves the right to interview any and all potential vendors to verify their knowledge and understanding of the scope of work to be proposed and the technical abilities for performing such an effort. The City reserves the right to conduct an on-site inspection without notice. Inspection team shall be granted access to facility including storage lots, dispatch center, evidence hold area, and other areas pertinent to the efficient operations of the business.

The City reserves the right to reject any and all Qualifications, to waive any informalities in any proposal, and to select the Proposal that best meets the City’s needs. Responses must be submitted without conditions.

The City may elect to interview a short list of qualified proposers or to interview only the top two rated proposers based upon the proposal submitted for the project.

Specifications are provided to identify the service required and to establish an acceptable level of quality. The City will be the sole judge in determining comparable levels of service and quality in all offers.

Franchisee shall furnish all the information required and is expected to examine all specifications, instructions and the terms and conditions prior to submittal of offer.

January 21, 2025 Regular CC Mtg Page 318 of 518
Franchisee shall furnish the services in strict accordance with the specifications set forth for each item in the RFQ.

Franchisee agrees not to use the names and addresses of City of San Fernando employees for any purpose not directly related to, and necessary for providing tow services for the City.

News releases pertaining to agreements resulting from this RFQ shall not be made without written approval by the City of San Fernando City Manager.

Franchisee must be authorized to do business in California. Franchisee shall provide a copy of current business license issued by the City of San Fernando. All licenses and permits must be kept current.

This Agreement may be amended in writing by either party at any time by mutual consent.

Franchisee agrees to indemnify, defend and save harmless the City, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, material men, laborers and any other person, firms, or corporation furnishing or supplying work services materials or supplies in connection with the performance of services to the City and from any and all claims and losses accruing or resulting to any person, firm, or corporation who may be injured or damaged any Vendor in the performance of services to the City.

The City reserves the right to reject any and all Qualifications, to waive any informalities in any proposal, and to select the Proposal that best meets the City’s needs. Qualifications will be considered only in their entirety. Late or incomplete Qualifications will not be considered, and the City reserves the right to determine the completeness of all Qualifications. The City’s decision shall not be decided on the basis of any single factor listed above but on the basis of the City Council’s independent determination as to which proposal provides optimal combination of beneficial factors. The City reserves the right to negotiate the specific requirements and cost using the selected proposal as a basis.

Except as set forth above, responses to inquiries or comments provided by any department, employee, or City office concerning this RFQ shall not be valid, the City shall not be bound by such responses or comments. The selection process includes a review of the required forms and a facility inspection.

Submittal Contents:

A. Cover Letter
A letter of introduction signed by a business /corporate officer authorized to bind the company to all commitments made in the proposal. The letter shall confirm that the company has a full January 21, 2025 Regular CC Mtg Page 319 of 518
understanding of the conditions and requirements stated in the RFQ, and that the company will comply with the criteria identified in this RFQ in addition to demonstrating the ability to comply with all of the provisions listed under section E, titled, “Provisions.” B. Qualifications and Experience

1. List the company name and indicate if it is a Corporation, partnership or joint venture; addresses for both corporate and local officers; first and last name of officers or partners and the date the local office opened its doors for business.

2. List all business names under which you operate a towing service in California and how many years that business has operated under that name.

3. List all businesses for which you or your business manager have filed for bankruptcy protection while operating under a towing service contract.

4. Provide a list of current and previous contracts similar to the requirements for the City.

Indicate all public agency service and provide a brief description and scope of work, length of time you have been providing services and the name, title and phone number of the person who may be contacted regarding your service record.

5. Submit a description of the tow company including qualifications, experience and abilities that make it fully capable to provide services under this agreement.

C. Method of Approach

1. Describe how the company proposes to meet the requirements of this agreement including response time, business office and storage yard location, 24-hour availability and reporting requirements.

2. List names, titles, responsibilities and telephone numbers of persons to be contacted at any hour in the case of emergency.

3. Describe in detail your policies and procedures for the following:
a. Release of vehicles under this agreement.
b. Allowing access to vehicles by owners and allowing;
* The owner to cover or take other protective measures, * The owner to remove personal effects or other articles from the interior of the vehicle,
* An authorized non-owner to photograph or take note of the condition of the vehicle.

January 21, 2025 Regular CC Mtg Page 320 of 518
c. Determining if the vehicle was damaged or stolen while in Franchisee’s custody and making restitution to owner if so determined.
d. Determining whether or not private property was damaged in the course of Franchisee’s duties and making restitution to the owner or restoring the property if so determined.
e. Informing a vehicle owner that a vehicle is in Franchisee’s possession and the location and condition of the vehicle.
f. Receiving and resolving complaints from the public.

4. State the methods of payment the Franchisee will accept from vehicle owners.

5. Provide a detailed description of record keeping tools and methods.

D. Facilities and Equipment

1. Provide a list and short description of all of the vehicles proposed to be used in the performance of services.

2. Describe the equipment method to be used in the dispatching of tow vehicles.

3. Provide a detailed description of the facilities including storage lots and business offices including location.

4. Provide a detailed description of facility security.

E. Provisions:

General Provisions (Sections A-Z)
A. Services Toto Be Performed:

The Franchisee shall furnish towing and storage services for vehicles seized, impounded or otherwise caused to be removed from the highways or from public or private property by the San Fernando Police Department (SFPD). Towing services shall include, but not be limited to, removal of wrecked vehicles and debris resulting from accidents, preliminary work necessary to towing, including removal of vehicles from ditches or separation of entangled vehicles, removal of vehicles for criminalistics and/or January 21, 2025 Regular CC Mtg Page 321 of 518
evidentiary purposes as directed by SFPD personnel, other impoundment of vehicles as directed by SFPD, and necessary services to heavy duty vehicles on the highways.

B. Conduct:

The Franchisee shall conduct business in an ethical, lawful and orderly manner so as to maintain the confidence of the community. While Franchisee is an independent contractor, each contact it has with the public may reflect upon the City. For that reason, and the inherent potential for conflict in vehicle removal and storage, Franchisee and its employees must maintain a fair, impartial, and reasonable attitude, and perform its duties in a courteous manner. Statements and actions of the Franchisee and its employees must be the result of considered judgment and absent of personal opinion or bias.

The Franchisee, when notified by the Chief of Police or his or her designee of any complaint of discourtesy by the Franchisee’s employee(s), shall investigate and respond in writing to the Chief of Police or his or her designee within ten (10) calendar days of receipt of notification of the complaint. Franchisee's response shall include the results of its investigation and, if the complaint is found to be true, what measures the Franchisee took to address said complaint and prevent future complaints on the same issue.

C. Regulation:

The Franchisee shall comply with all applicable, Federal, State and local laws, ordinances, rules and regulations, shall make all reports required by the State of California Vehicle Code, and shall follow all rules or regulations which the Police Department may prescribe governing the conduct of Franchisee's operations under the Franchise Agreement.

D. Cooperation:

Tow unit operators shall abide by the lawful decisions of all peace officers and law enforcement employees of the City of San Fernando and shall cooperate in removing and/or in impounding vehicles.

E. Supervision:

The Franchisee shall comply with all reasonable regulations imposed by the City on the Franchisee's performance pursuant to the Franchise Agreement. The Franchisee shall further make all records, equipment and storage facilities related to Franchisee's performance under the Franchise Agreement available for periodic inspection by the Chief of Police or his or her designee to determine if all are in compliance with the rules and regulations of the City.

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F. Priority and Response Time:

The Franchisee shall furnish such services as requested by the Police Department and noted in the Franchise Agreement at any time during the day or night and shall:

1. Give priority to City calls when requested;

2. Maintain sufficient personnel and equipment to provide for a maximum response time of fifteen (15) minutes, except as otherwise provided herein;

3. Notify the Police Department upon receipt of request for tow when a tow unit cannot respond immediately and give an estimated time of arrival;

4. If the Franchisee is unable to respond within the maximum response time and/or there is a potential public safety issue determined by the Police Department at the site of the incident that requires immediate removal and/or relocation of a vehicle(s), then the Franchisee’s identified subcontractor will be contacted by the Franchisee to immediately assist the Police Department and ensure the subject vehicle(s) removal and/or relocation; and

5. The Franchisee shall provide immediate response whenever requested to respond to the scene where a child is locked in a car or other emergency of such type.

G. Administration:

The Police Department shall administer the Franchise Agreement on behalf of the City and the Franchisee shall abide by the directions and decisions of Police Department personnel at the scene of a call.

H. Settlement of Disputes:

Should there be any dispute between the Franchisee and owner of the vehicle over charges made for services rendered under the Franchise Agreement, such dispute shall be decided by the Chief of Police or his or her designee and the Franchisee shall make no demands upon the owner of the vehicle for a sum in excess of the amount determined to be reasonable by the Chief of Police or his or her designee. The Chief of Police or his or her designee may hold an administrative hearing if any party to the dispute so requests.

I. City not Liable:

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Neither the City nor the Police Department shall be responsible to the Franchisee for payment of towing, removal, or storage charges. The Franchisee shall look to the owner of the vehicle for payment of applicable fees.

J. Reports to be made to the City:

The Franchisee shall provide the Police Department on the fifteenth (15th) day of each month with a written list of all vehicles removed or impounded during the past month pursuant to the Franchise Agreement. This list shall include vehicle owner's name and address (if known), vehicle make, license and motor number, and Police DR Number. The Franchisee shall also provide at the same time, a list of all vehicles currently on the Franchisee's premises that were removed from a traffic accident site handled by the Police Department. This list shall also include vehicle license number, date of storage, reason for storage, and Police DR Number, if applicable. An explanation of each tow requiring an excess of one hour shall be provided. The report shall also contain a list of the tow unit operators that were employed by the Franchisee during any period of that reporting month, the list shall contain the tow unit operator's name, operator's license number, classification, and its expiration date.

Franchisee or his/her designee shall sign the monthly report.

Franchisee shall notify the Chief of Police or his or her designee in writing of any sale or disposal of a formerly stored vehicle or vehicle part to an individual known to the Franchisee designee or his employees as a City employee.

K. Insurance and Indemnity Requirements:

1. Insurance: The Franchisee shall produce and maintain for the duration of the Franchise Agreement the insurance as required in this section. Franchisee shall not commence work under this Agreement until proof of all required insurance has been provided to and accepted by the City. The Franchisee shall file with the Chief of Police a policy or duly authorized certificate of public liability insurance insuring the City of San Fernando, its officers, agents and employees, against liability. Franchisee shall maintain limits no less than:
a. Workers' Compensation Insurance: as required by the State of California, and Franchisee's liability insurance, with limits not less than $1,000,000 each accident. The workers' compensation policy shall be endorsed to contain a waiver of subrogation in favor of the City for all work performed by the Franchisee under this Agreement.
b. Garage Liability Insurance: at least as broad as Insurance Services Office (ISO) occurrence Form CA 00 05 with Broadened Coverage - Garage Endorsement January 21, 2025 Regular CC Mtg Page 324 of 518
(CA 25 14). Such insurance shall include coverage for liability arising out of garage operations with limits not less than $1,000,000 each accident and $2,000,000 in aggregate, and automobile liability coverage for owned, hired and non-owned automobiles with limits not less than $1,000,000 each accident. The insurance shall also include Garagekeepers Liability coverage for each location the Franchisee may utilize to provide service under this contract with limits of not less than $1,000,000 per location.
c. As an alternative to the requirements in paragraph b above, Franchisee may provide a combination of Insurance Services Office (ISO) Commercial General Liability coverage (occurrence Form CG 00 01), including coverage for bodily injury, property damage, and personal and advertising injury with coverage for premises and operations (including the use of owned and non-owned equipment), products and completed operations and contractual liability (including without limitations indemnity obligations under the Contract) with limits of not less than $1,000,000 per occurrence and $2,000,000 in aggregate and Insurance Services Office (ISO) Form CA 00 01 covering Automobile Liability, code 1 (any auto, owned, hired and non-owned automobiles or other licensed vehicles) with limits of $1,000,000 per accident for bodily injury and property damage. The insurance shall also include Garagekeepers Liability coverage for each location the Franchisee may utilize to provide service under this contract with limits of not less than $1,000,000 per location.
d. On Hook Physical Damage Liability Insurance with limits not less than $500,000 per vehicle.
e. Deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers or (b) the Franchisee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. f. Other insurance provisions: The policies are to contain, or be endorsed to contain, the following provisions:

1. The Commercial General Liability policy shall be endorsed to provide that the City of San Fernando, its officers, officials, employees, and volunteers are covered as additional insureds with respect to liability arising out of work or operations performed by or on behalf of the Franchisee under the Franchise Agreement. Proof of this coverage must be in the form of an additional insured endorsement to the Franchisee's insurance using ISO CG 20 10 11 85 or its equivalent January 21, 2025 Regular CC Mtg Page 325 of 518
language. If coverage is provided in the form of a Garage Liability Policy, such policy shall be endorsed to include equivalent additional insured status to the City of San Fernando, its officers, officials, employees and volunteers.

2. For any claims related to this project, the Franchisee's insurance coverage shall be primary insurance as respects the City of San Fernando, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Franchisee's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, reduced in coverage or in limits, or cancelled by either party, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City of San Fernando.
g. Subcontractors: Franchisee shall include all subcontractors as insured under its policies or require and verify that all subcontractors maintain insurance meeting all the requirements of this RFQ and the Franchise Agreement. h. Verification of Coverage

1. Franchisee shall furnish the City with original certificates and endorsements, including amendatory endorsements, effecting coverage required herein. All certificates and endorsements must be received and approved by the City of San Fernando before work commences under the Franchise Agreement. The City reserves the right to require complete, certified copies of all required insurance policies and endorsements required by these specifications at any time during the term of this contract. Neither the failure of the Franchisee to supply required proof of coverage, nor the failure of the City to approve same shall alter or invalidate the provisions of this contract.

2. The Franchisee shall submit evidence of appropriate replacement or renewal coverage for all required insurance that expires or is cancelled during the term of the Contract. Such evidence shall be provided to the City no later than 15 calendar days prior to the expiration or termination of coverage. If operator fails to maintain the required insurance in full force and effect, all work under this Contract shall be discontinued immediately, and all payments due or that become due to Franchisee shall be withheld until City receives required evidence that coverage has been restored.

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i. Acceptability of Insurers: Insurance is to be places with insurers with a current A.M. Best’s rating of no less than A: VII.
j. All policies required pursuant to this section shall be submitted to the San Fernando City Attorney for approval as to form.

2. Indemnification:
a. Franchisee agrees to indemnify, defend and hold harmless the City, its elected officials, officers, agents and employees (“Indemnities”), at Franchisee's sole expense, from and against any and all loss, liability, penalties, forfeitures, claims, actions, suits or other legal proceedings of any kind asserted against the City, its elected officials, officers, agents, and employees arising out of the performance of Franchisee, its employees, representatives, agents, and sub operators under this agreement, excepting only such claims or actions which may arise out of sole or active negligence of the City, its elected officials, officers, agents and employees. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Franchisee, its employees, and/or authorized sub operators, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents, and employees based upon the work performed by the Franchisee, its employees, and/or authorized sub operators are specifically named or otherwise asserted to be liable. This provision shall supersede and replace all other indemnity provisions contained either in the City's specifications or Franchisee's proposal, which shall be of no force and effect.
b. The Franchisee’s obligation to defend, hold harmless, and indemnify shall not be excused because of the Franchisee’s inability to evaluate liability or because the Franchisee evaluates liability and determines that the Franchisee is not liable to the claimant. The Franchisee must respond within thirty (30) days to the tender of a claim for defense and indemnity by the City, unless this time has been extended by the City. If the Franchisee fails to accept or reject a tender of defense and indemnity within thirty (30) days, in addition to any other remedy authorized by law, so much of the money due the Franchisee by virtue of the Franchise Agreement as shall reasonably be considered necessary by the City may be retained by the City until final disposition has been made or the claim or suit for damages, or until the Franchisee accepts or rejects the tender of defense, whichever occurs first.
c. With respect to third party claims against the Franchisee, the Franchisee waives any and all rights of any type to express or implied indemnity against the Indemnities.

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d. Separate Counsel: The City may elect to have separate legal counsel from Franchisee at any time at its sole discretion, and in such case Franchisee will pay one-half (1/2) of all fees and costs and charges for such separate legal counsel. e. Subcontractors: The Franchisee shall require all subcontractors to enter into an Agreement containing the provisions set forth in Section K of this RFQ in which Agreement the subcontractor fully indemnifies the City in accordance with this RFQ and the Franchise Agreement.
f. Exception: Notwithstanding Subsections K(2)(a)-(b) above, Franchisee’s obligation to indemnify, hold harmless and defend the City, its officers and employees shall not extend to any loss, liability penalty, claim, damage, action or suit arising or resulting solely from acts or omissions constituting willful misconduct or sole negligence on the part of the City, its officers or employees. g. Damage by Franchisee: If Franchisee’s employees or subcontractors cause any injury, damage or loss to City property, including by not limited to City streets or curbs, Franchisee shall reimburse City for City’s cost of repairing such injury, damage or loss. Such reimbursement is not in derogation of any right of the City to be indemnified by Franchisee for any such injury, damage or loss. With the prior written approval of City, Franchisee may repair the damage at Franchisee’s sole cost and expense.
h. Tort Claims Act: This RFQ and the Franchise Agreement shall in no way act to abrogate or waive any immunities available to the City under the Tort Claims Act of the State of California.

L. Franchisee’s Records, ETC. Open to Inspection:

All records, equipment, and storage facilities shall be open to periodic inspection by the Police Department personnel or its designated representative. Any deficiencies shall be corrected as soon as practicable upon request of the Police Department.

M. Impound Reports:

A Franchisee tow unit operator shall sign and complete the necessary portions of the impounding employee's Impound Report. The impounding employee shall retain the original copy of the Impound Report. Franchisee shall retain a copy of the Impound Report for two years. The garage's copy of the Impound Report shall be used to record the vehicle release information in the appropriate space provided in the Impound Report.

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N. Notifications:

The Franchisee's employees while acting within the course of their employment shall cause the appropriate law enforcement agency to be notified without delay whenever they become aware of a possible crime or other activity requiring action by law enforcement personnel. The Franchisee shall notify the Police Department in writing on a weekly basis of the following:

1. All vehicles originally impounded by a public agency but that have remained in storage beyond seven calendar days.

2. All vehicles originally impounded with a criminalistics/evidentiary hold, but that have remained in storage with a hold beyond seven calendar days, Franchisee shall notify SFPD on a weekly basis of all vehicles sold during the preceding week in accordance with statutorily established lien procedures.

O. Storage:

Storage shall commence at the time the vehicle arrives at the Franchisee’s storage facility.

Charges for vehicle storage shall be based on a daily rate. The daily rate extends from midnight to midnight of the following day.

Exceptions:

1. When a release request is made within the first “hour of storage”, the storage fee shall be waived.

2. Per SB 887 (1992, Lockyer), when a release request is made within 24 hours, only one days storage shall be charged regardless of the calendar date.

3. When a release request is made between 7 p.m., and 12 a.m., (midnight), one day's storage fee shall be waived providing such release occurs within the mandatory release hours (7 a.m., to 7 p.m.,) of the following day.

P. Lien on Stored Vehicles:

The Police Department personnel who is requesting the impound shall be responsible for establishing that "probable cause" exists to impound the vehicle in question. When "probable cause" is lost prior to a vehicle being removed to a Franchisee facility, no lien shall be attached and no fee shall be charged for the field release of a vehicle to a properly interested person.

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Q. Disputes and Injuries:

The Chief of Police or his or her designee has the authority to settle all disputes arising from actions by the Franchisee. The decision of the Chief of Police or his or her designee shall be binding on all parties involved. Inquiries pertaining to the conduct, practices, and regulation of the Franchisee may be referred to the City of San Fernando Police Department, 910 First Street, San Fernando, California, 91340; (818) 898-1267.

R. City Vehicles:

The Franchisee shall provide, at no cost to the City, routine roadside service including, but not limited to, towing service, to all vehicles owned by the City of San Fernando up to and including one (I) ton rated vehicles at the request of the Chief of Police Chief or his or her designee whenever such vehicles require such service within the City of San Fernando or within five (5fifty (50) road miles of the corporate limits of the City.

S. Traffic Accident Scene Cleanup:

At the request of the Police Department, the Franchisee shall dispatch a tow unit to the scene of a traffic accident and shall remove all glass and debris deposited upon the roadway.

T. Fax Machine:

The Franchisee shall maintain a fax machine or similar transmittal device at all times during the term of the Franchise Agreement.

U. Toxic Materials:

City will not knowingly require the Franchisee to pick up, store or dispose of any toxic or hazardous materials, except for those normal fluids associated with motor vehicles.

V. Cost to City:

Unless otherwise provided in the Franchise Agreement, any towing and storage expenses for which the City is financially responsible pursuant to the Franchise Agreement, including towing or storage of city-owned vehicles, shall be billed to the City at no more than 50% of the rate authorized by the Franchise Agreement.

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W. Collection of Fees:

The Franchisee shall collect all fees imposed by the City upon vehicles that the City causes to be towed, stored, or impounded. This money shall be paid to the City on a monthly basis.

X. Permits and Certificates:

The Franchisee shall secure and maintain any licenses, permits, or certificates required by Federal, State and local law. The Franchisee shall secure and maintain such City business license as required by San Fernando City Code. In addition, the Franchisee shall keep informed of and comply with the requirements of all Federal, State, county and municipal laws, ordinances, and regulations applicable to the work performed under the Franchise Agreement.

Y. Background Investigation and Fee Required:

Prior to the award of the Franchise Agreement, the Police Department shall conduct or have conducted a background investigation of the business, its principals, and its tow truck drivers. The cost associated with the fingerprinting process of the background investigation is the responsibility of the Franchisee. The Franchisee awarded the Franchise Agreement shall be responsible to notify the Police Department whenever a new driver is assigned to tow requests from the Police Department. All new tow drivers shall be subject to background investigation.

Z. Franchise Fees:

The Franchisee shall pay to the City on a quarterly basis the Franchise Fee authorized by City Council, pursuant to San Fernando City Code Section 90-911 and all resolutions authorized thereby. Pursuant to Resolution No. 7302, adopted by the City Council on March 30, 2009, the Franchise Fee in effect as of the date of this RFQ is $45.00 per vehicle towed.

The Franchise Fee payment of $45.00 per vehicle towed shall be paid on a quarterly basis and received no later than April 15, July I5, October 15, and January 15 of each year.

Failure to make Franchise Fee and business license tax payments may be cause for termination of the Franchise Agreement.

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Staffing Provisions (Sections A-D):

A. Sufficient Personnel:

The Franchisee shall have sufficient personnel on duty at all times to:

1. Receive calls from the Police Department communications center;

2. Dispatch tow units;

3. Provide security at all storage sites; and,

4. Provide such services as may be required under the Franchise Agreement B. Dispatcher:

A dispatcher shall be on duty in the Franchisee’s office seven (7) days a week, twenty-four (24) hours a day, every day of the year. A dispatcher shall receive calls from Police Department and its communications center, dispatch tow units, provide security for stored vehicles, and perform such other tow related services as may be required by the Chief of Police or his or her designee. A dispatcher shall be responsible for releasing vehicles between the hours of 7 a.m. and 7 p.m., seven (7) days a week, every day of the year and may, at his or her discretion, release vehicles between the hours of 7 p.m. and 7 a.m. Any vehicle impounded in connection with a special event, as designated by the Chief of Police or his or her designee, shall be available for release for a minimum period of four (4) hours following the conclusion of the special event, regardless of the time of day the special event concludes.

A dispatcher and/or other Franchisee employees providing service to the public shall wear a nametag/badge with their name and/or have their first name conspicuously imprinted on their uniform. The Franchisee shall be responsible to provide the nametag. This is required at the time of submittal to this RFQ.

C. Timekeeping and Delays:

The Franchisee shall record the following times pertaining to law enforcement and City agency tow service request by means of a time clock:

1. The time that the request for tow service is received; January 21, 2025 Regular CC Mtg Page 332 of 518

2. Time that a tow unit is assigned the call for service and given the location of the requested service;

3. The time that a tow unit arrives at the location of requested service; and,

4. The time that a tow unit returns to Franchisee Facility with the vehicle.

The Franchisee shall ensure that a sufficient number of tow units and tow unit operators are available at all times to meet the needs of all Police Department personnel, other law enforcement agencies, and City departments that rely upon it for tow service. Within ten (10) minutes of the receipt of a request for tow service from the Police Department or its communications center, an available, unassigned tow unit and operator shall be dispatched and shall immediately proceed to the location of the requested service. The Franchisee shall advise the communications center when a tow unit cannot be dispatched within ten (10) minutes and shall give the reason why the tow unit cannot be dispatched and an estimated time of dispatch. Once dispatched, a tow unit operator shall respond to an assigned call by the most direct and expeditious route.

EXCEPTION: Orders to remove abated vehicles or vehicle parts from private property shall be executed by the ordered Franchisee within forty-eight (48) hours of receiving such notification.

D. Operators:

The Franchisee shall employ no person as a tow unit operator until he or she possesses the appropriate class of California driver’s license and medical certificate, if required, for the type of tow unit being operated. Tow unit operators shall wear a uniform approved by the Chief of Police or his or her designee whenever they are performing services in response to a call from the City of San Fernando. A nametag/badge identifying the operator by first name shall be worn on the operator's outer most shirt or jacket.

Towing Provisions (Sections A-C):

A. Place to Which Vehicles Shall be Towed:

Any vehicle towed pursuant to the Franchise Agreement shall be taken to such place as the owner or driver of the vehicle directs. When impounded by the Police Department it shall be taken to the storage lot designated by the Police Department. If neither the owner nor the driver nor the Police Department specifies a destination, is unable to do so, or is not at the scene of removal, the Franchisee shall tow the vehicle to Franchisee's Primary Storage Facility. In no case January 21, 2025 Regular CC Mtg Page 333 of 518
shall Franchisee use coercion or pressure of any kind upon the owner or driver of a vehicle to have the vehicle towed to Franchisee's own storage yard or garage.

B. Evidence to be Safeguarded:

The Franchisee shall take all reasonable precautions required by the Police Department to avoid damage to any evidence or impounded vehicles such as fingerprints or stains. Vehicles taken into custody that involve such evidence shall be stored in the Investigative Hold Area, as defined hereinafter, and shall be secured from access by unauthorized persons. Vehicles stored for prints shall be protected from dust and dirt or deterioration of evidence by the sun or other elements.

C. Removal Charges:

Vehicles shall be taken to any place the owner or driver of the vehicle directs, within fiveten road miles of the location of the vehicle, with the fee for such to be established in conjunction with the posted towing rates of the Franchisee. Charges for towing beyond fiveten miles shall be based on an hourly rate for time actually consumed. Removal charges commence at the time a tow unit actually proceeds to a call for service and terminate at the time the tow unit returns to the Primary Storage Facility. The first hour or fraction thereof shall be at the rate specified by the Chief of Police or his or her designee and at half of that hourly rate for each additional half hour or fraction thereof over the first hour.

Storage Provisions (Sections A-K):

The Franchisee shall provide a total storage capability of not less than 65 vehicles including five (5) vehicles within an enclosed investigative hold area. Based on future needs of the SFPD, the Franchisee shall ensure that they are able to expand total storage capability to 85 vehicles including the five (5) vehicles within an enclosed investigative hold area. The increased vehicle storage capacity can be addressed entirely on a Primary Storage Lot or through the use of Primary Storage Lot and a Secondary Storage Lot. This is required at the time of submittal to this RFQ.

A. Primary Storage Lot:

The Franchisee shall at all times provide and maintain a Primary Storage Facility with a minimum storage capacity of 65 vehicles including an investigative hold area for five (5) vehicles dedicated to the storage of vehicles from the Police Department pursuant to the Franchise Agreement. The Primary Storage Facility shall be no more than five (5ten (10) miles
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from the San Fernando Police Department’s office building. This required at the time of submittal to this RFQ.

The storage lot, or Primary Storage Facility if more than one such lot is maintained, shall be:

1. Immediately adjacent to or contain office facilities.

2. Adequate in size to accommodate all:
a. "Hold" vehicles;
b. Late model vehicles;
c. Specially equipped vehicles; and
d. Vehicles to be released immediately to owners.

3. Entirely surfaced with either concrete or asphalt material.

4. Free of holes or areas that are decomposed or broken.

5. Clean and free of litter, debris, or weeds.

6. Include on-site lighting that provides easy visibility to all areas of the lot while eliminating spill over onto neighboring properties.

7. Sized and dimensioned to afford safe access to all vehicles.

B. Investigative Hold Area Andand Vehicles:

The Franchisee shall maintain an area at its Primary Storage Facility for vehicles held for criminalistics and/or evidentiary examinations, which has a minimum vehicle storage capacity of five (5) vehicles. This is required at the time of submittal of this RFQ. This Investigation Hold Area shall:

1. Have a fully enclosed structure and be capable of providing protection from the natural elements.

2. Be fenced and gated (so as to prohibit entry by unauthorized persons as prescribed by the Chief of Police or his or her designee) with remote access controlled by the Franchisee dispatcher.

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3. All entries shall be documented to identify the vehicle seen, the person entering, and the date and time the person entered the Investigative Hold Area.

4. The Investigative Hold Area's storage capacity shall be capable of holding ten (10) vehicles at any one time.

5. The only persons authorized to enter an Investigative Hold Area are the Franchisee employees and concerned law enforcement employees.

6. Garage employees shall not remove property from vehicles being held for criminalistics and/or evidentiary purposes.

7. Vehicles stored in an Investigative Hold Area shall not be removed from the area until authorized by the responsible Police Department personnel/investigator.

8. Once an investigative hold has been released on a vehicle it shall be immediately removed from the Investigative Hold Area.

9. The date and time of removal and the removing employee's identity shall be recorded on the Franchisee records.

Vehicles being held for Vehicle Code (VC) 22651 (0) (No Current Registration); VC 22651 (P) (Unlicensed Driver); VC 22651 (i) Unpaid Parking Citations); or VC 10751 (Altered Identification Number) (hereafter referred to as "statutory holds") need not be stored in the Investigative Hold Area but shall be stored in the same manner as vehicles available for release, unless there is an additional hold for criminalistics or evidentiary examinations.

Garage employees may remove unattached personal property for safekeeping when a vehicle is being held exclusively for statutory hold. Any statutorily held vehicle shall not be available for release until authorized by the concerned governmental agency employee or the Area Vehicle Coordinator.

C. Secondary Storage Lots:

All Secondary Storage Facilities proposed by the Franchisee shall be inspected and approved by the Chief of Police or his or her designee prior to use. A Secondary Storage Facility is a designated location used by the Franchisee as a yard or lot for the temporary storage of impounded vehicles. All Secondary Storage Facilities shall be within five (5ten (10) miles of Franchisee's Primary Storage Facility. All Secondary Storage Facilities must be fenced for maximum security and lighted during the hours of darkness to afford illumination of all stored vehicles. Secondary Storage Facilities shall only be used to store vehicles with appraised values under one thousand dollars ($1000.00). A Secondary Storage Facility may be used for emergency temporary storage of vehicles with appraised values over one thousand dollars ($1000.00) with the prior written approval of the Chief of Police or his or her designee, but in January 21, 2025 Regular CC Mtg Page 336 of 518
such cases, an attendant must be on duty at the facility for security. The location where vehicles are stored within a Secondary Storage Facility shall be accurately recorded on the garage's impound records. This is required at the time of submittal of this RFQ.

D. Storage of Vehicles:

All vehicles towed or stored by the Franchisee under the Franchise Agreement shall be kept within the Primary or Secondary Storage Lot when under direct supervision. At no time shall such vehicles be parked or stored or left standing on any public street or alley. Undamaged vehicles shall be segregated from wrecked or junk vehicles and shall be kept in the primary lot. All vehicles shall be systematically parked and sufficiently separated to preclude the probability of damage. Unobstructed access shall be provided to all stored vehicles. Vehicles shall be parked and separated to preclude the possibility of damage. Security provisions shall be implemented at all Secondary Storage Facilities to prevent the loss or theft of personal property or vehicle parts. Secondary Storage Facilities shall provide safe access to all stored vehicles and shall be kept clean and free of litter, debris, and weeds. Lighting of such lots shall be adequate to ensure required security of stored vehicles and eliminate light spill over onto neighboring properties. The Franchisee shall provide security to all primary and secondary storage facilities sufficient to reasonably preclude theft or damage to stored vehicles and as hereinafter provided.

E. Enclosure of Storage Areas:

Unless otherwise provided by applicable city regulations, all outdoor areas used for storage shall be enclosed with a solid wall, chain link or wrought iron style fence at least six (6) feet in height, having a gate or door of adequate width and equivalent height. The fence shall be covered from public view. The bottom edge of any such fence or wall, including all gates or doors, shall be maintained in such a manner as to prevent unauthorized entry. All wall or fence enclosures shall be maintained in good condition throughout the term of the Franchise Agreement; any damage shall be repaired promptly within twenty-four (24) hours of notice of such damage. This is required at the time of submittal to this RFQ.

F. Office:

The office space at the Primary and Secondary Storage Facilities shall be neat in appearance, clean and painted. A waiting area shall be provided for customers with adequate restroom and other facilities for the customers' comfort. This is required at the time of submittal to this RFQ.

G. Responsibility for Vehicle, Accessories, and Personal Property:

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The Franchisee shall be responsible for vehicles and accessories while in Franchisee’s possession. The Franchisee shall also be responsible for personal property left in the vehicle at the time possession of that vehicle is taken. All property left in a vehicle should be listed on the California Highway Patrol 180 form. No articles shall be removed without first obtaining written authorization from a Police Department officer. Any articles removed for any reason shall be noted by the authorizing Police Department officer. The Franchisee shall maintain a record of the identity of all persons who have entered a stored vehicle for the purpose of accessing unattached personal property. The record shall also include the date of entry and a description of any property removed. Unattached personal property may be removed for safekeeping by garage employees, but only from available for release and statutorily held vehicles. When the Franchisee’s personnel removes unattached personal property for safekeeping from a vehicle, the following shall occur:

1. Record a description of the removed property on the corresponding copy of a garage impound report.

2. Implement controls to inform Franchisee’s office personnel responding to public inquiries that personal property has been removed from a vehicle.

3. Cause the property to be individually packaged and identified.

4. Provide a secure location for the storage of the property to preclude loss, theft or damage.

5. Inform properly interested persons that property has been removed and how they may obtain possession of that property.

H. Protection and Handling of Vehicles:

It is the responsibility of the Franchisee to protect all vehicles, vehicle parts and/or attached accessories impounded by peace officers or City law enforcement personnel until such time the vehicles have either been released to properly interested persons or have been disposed of through legal process.

Vehicle parts and/or attached accessories shall not be removed from an impounded vehicle with a criminalistics/evidentiary hold on the vehicle without the prior approval of the concerned law enforcement personnel. The Franchisee’s garage employees from other impounded vehicles may remove vehicle parts and/or attached accessories for safekeeping.

When the Franchisee’s employee removes vehicle parts and/or attached accessories for safekeeping from a vehicle it shall:

1. Record a description of the removed vehicle parts and/or attached accessories on the corresponding copy of the garage impound report.

January 21, 2025 Regular CC Mtg Page 338 of 518

2. Implement controls to inform the Franchisee’s office personnel responding to public inquiries that vehicle parts and/or attached accessories have been removed from a vehicle.

3. Cause the vehicle parts and/or attached accessories to be individually packaged and identified.

4. Provide a secure location for the storage of the vehicle parts and/or attached accessories to preclude loss, theft or damage.

5. lnform properly interested persons that parts and/or attached accessories have been removed and how they may obtain possession of that property.

The release of impounded vehicles that are available for release shall be the responsibility of the Franchisee. Criminalistics/evidentiary or statutorily held vehicles shall not be available for release until Police Department personnel has given written authorization to the Franchisee.

The Franchisee, at its Primary Storage Facility, shall prepare, maintain, and post in a conspicuous place, clearly visible to the public, a notice outlining procedures and the required documentation necessary for properly interested persons to obtain possession or remove unattached personal property from a stored vehicle and/or to view or photograph a stored vehicle within twenty-four (24) hours of making such a request.

Vehicle inventories, when conducted by Franchisee employees, shall only be conducted within the confines of a storage facility and in the presence of a witnessing employee.

I. Release of Vehicles:

A Franchisee dispatcher shall be responsible for releasing vehicles between the hours of 7 a.m. and 7 p.m., seven (7) days a week, every day of the year and may, at his or her discretion, release vehicles between the hours of 7 p.m. and 7 a.m. Any vehicle impounded in connection with a special event, as designated by the Chief of Police or his or her designee, shall be available for release for a minimum period of four (4) hours following the conclusion of the special event. For the purposes of this provision, "special event" shall include DUI checkpoints, parades, et cetera.

J. Regulation:

The Franchisee shall comply with all Federal, State and local laws, ordinances, rules and regulations and shall make all reports required by the State of California Vehicle Code and shall follow all reasonable rules or regulations that the SFPD may, from time to time, prescribe governing the conduct of the Franchisee's operations under the Franchise Agreement.

January 21, 2025 Regular CC Mtg Page 339 of 518
K. Authorized Rates and Charges:

The Franchisee may submit to the Chief of Police a written request for a change of rates. All requests for rate adjustment shall set forth the Franchisee’s current rate charges and the proposed charges. Verifiable profit or loss information may be required prior to any rate adjustment. Rates and charges shall not exceed those established by the City of Los Angeles Police Commission for its Official Police Tow Garages as such rates shall from time to time be amended and or what is allowed by State law. If the City of San Fernando, in its sole discretion, decides to amend the rates for towing and storage of vehicles to a different rate schedule than the one employed by the City of Los Angeles, it shall give the Franchisee written notice of its intention to adopt an amended schedule and negotiate with the Franchisee for a period of no less than 60 days before a new schedule is enacted.

Except as provided by the approved rate schedule, no additional charges shall be made for special equipment or service necessary to prepare vehicles for removal.

All bills shall be itemized.

Vehicle and Equipment Provisions (Sections A-D):

A. Tow Units Radio Equipment:

The Franchisee may equip tow units and facilities with radio equipment capable of receiving police calls, police frequency and/or local government frequencies. On those trucks that primarily operate after normal business hours, the Franchisee may also have transmitting capabilities on local government frequencies for emergency contact with the Police Department communications center, if approved by the COP or his or her designee.

B. Dispatcher’s Office Radio Communications:

The Franchisee dispatcher's office shall be equipped to receive police radio calls. Priority shall be given to calls from the Police Department or its communications center. In the event that multiple agency requests for services are received at the same proximate time, the Franchisee dispatcher shall assign response priority to the request of the most urgent nature based upon information the dispatcher has received from the agencies. The Franchisee tow units may be equipped to monitor police radio calls while acting within the course and scope of their designated responsibilities after obtaining a permit from the Chief of Police or his or her designee.

1. Tow Trucks.

January 21, 2025 Regular CC Mtg Page 340 of 518
a. The Franchisee shall have a minimum of two (2) tow trucks with a minimum 19,500 Gross Vehicle Weight (GVW) manufacturer rating with a minimum wheel lift capacity rated at a minimum 4,000 pounds. The main winch(es) shall be either mechanically or hydraulically driven and shall have a single or combined capacity of at least four (4) tons at bard drum or one (1) wrap of cable with a minimum of one hundred feet (100') of cable.

Each such tow truck shall be equipped with a snatch block, dollies, one (1) ton floor jack and J/T hook chain assemblies.

The Franchisee shall have and maintain a minimum of two (2) 19,500 – 26,000 GVW manufacturer rated car carrier. The main winch(es) shall be either mechanically or hydraulically driven and shall have a single or combined capacity of at least four (4) tons at bare drum or one (1) wrap of cable with a minimum of fifty feet (50') of cable.
b. Official heavy-duty tow units will be requested by the Police Department or its communication center when the vehicle to be towed possesses one or more of the following: three or more axles; a gross weight, laden or un-laden, in excess of 10,000 pounds; or a combination of commercial trailers. The Franchisee may subcontract for heavy-duty tow services. The subcontractor shall meet the standards set forth in the Franchise Agreement. c. All trucks used in performing towing services under the Franchise Agreement shall conform to all requirements of the State of California Vehicle Code and shall comply with the following:
1) Truck bodies shall be painted and kept clean and in good repair, free of dents;
2) The cab interior shall be kept clean;
3) The tow truck bed shall be kept clean and equipment shall be properly mounted and maintained;
4) Tail lamps, stop lamps and turn signal lamps with electrical extension cord shall be operable and shall be used on all towed vehicles; and, 5) Each tow vehicle shall carry the following equipment:
(a) State approved air tank or air transfer system
(b) Flashlight or portable light
January 21, 2025 Regular CC Mtg Page 341 of 518
(c) Floor jack - 1-ton minimum capacity
(d) Gasoline container – 2 ½ gallon minimum capacity
(e) Lug wrench – 4-way and wrench for foreign cars
(f) Water container – 3-gallon minimum capacity
(g) Battery booster and cables
(h) Axe
(i) Sledge
(j) Flares
(k) Bolt cutters
(I) Pry bar
(m) 25 foot recovery chain
(n) Trash can and absorbent.

This section, Vehicle & Equipment Provisions A-D, are required at the time of submittal to this RFQ.

C. Tow Truck Parking:

The Franchisee shall at all times provide sufficient off-street parking spaces for the parking and storage of vehicles and other equipment used in the performance of the Franchise Agreement.

D. TOW UNIT MARKINGS:

Each tow unit shall be marked as required by California Vehicle Section 27907. Lettering shall be at least two and one-half (2 ½) inches, but not in excess of four (4) inches in height.

Tow units may be marked with an official seal of the City of San Fernando in a conspicuous place as reviewed and approved by the Chief of Police or his or her designee.

January 21, 2025 Regular CC Mtg Page 342 of 518
Inquiries:

Specific questions shall be requested in writing and responses will be formulated and forwarded to all prospective vendors via email by the stated dates in the RFQ schedule. No phone questions will be accepted. All written questions regarding this RFQ should be directed to:

Lt. Nichole HanchettCmdr CJ Chiasson, San Fernando
Police Department
910 First Street
San Fernando CA 91340
[email protected]
[email protected]
Evaluation of Qualifications:

Each proposal must provide detailed information sufficient to evaluate the Franchisee’s capability regarding each of the following factors:

1. The ability, capacity, experience and skill to perform under the Franchise Agreement and to competently perform all of the services and tasks contemplated thereunder.

2. The physical facilities to perform under the terms and conditions of the Franchise Agreement and provide the service within the time specified without delay or interference.

3. The character and integrity of the proposer and its principals, including but not limited to any history of complaints of poor customer service, unethical or predatory business practices, discourteous service or criminal conduct.

4. The proposer's record of performance on current and previous contracts or services with the City, other municipalities, and/or public agencies.

5. Qualifications, resumes and references for similar work completed within five (5) years.

6. Knowledge of City codes and procedures.

7. The previous and existing compliance by the proposer with laws and ordinances relating to the towing and storage of vehicles.

8. The financial strength of the proposer to provide the level and scale of service called for under this RFQ, including written proof in the form of proposer’s financial records that show to the satisfaction of the City that the proposer's has the financial resources and ability to perform the Franchise Agreement and provide the services requested.

January 21, 2025 Regular CC Mtg Page 343 of 518

9. Ability of the proposer to meet the City's requirements under this RFQ and the Franchise Agreement.

10. The quality, availability and adaptability of the proposer’s physical facilities, staff, and equipment.

11. The degree to which the proposer’s proposal deviates from or is otherwise unable to comply with the baseline requirements and conditions set forth under this RFQ.

12. Projected response time to calls for service.

13. The proposer’s impound policies and practices and impound rates and the strategies the proposer proposes to put in place to facilitate the speedy and cost-effective return of vehicles to persons whose cars have been impounded so as to minimize the accrual of costly impound fees.

14. The proposer’s proposed policies for training its tow truck drivers and impound yard personnel to provide courteous, honest and ethical services to persons whose cars have been impounded.

Bid Rejection:

All SOQs will be reviewed to determine conformance with the RFQ requirements. Any SOQ that the City deems incomplete, conditional, or non-responsive to the RFQ requirements may be rejected. The City reserves the right to reject any and all SOQs.

Screening, Selection and Award:

The screening and selection process shall be as follows:

1. Sealed SOQs will be opened and evaluated to determine compliance with Section 4, Required Qualifications of Consultant. SOQs meeting specified requirements will be considered responsive and will be included in the next phase of review.

Responsive SOQs will be evaluated by City staff members.a panel of City staff members. Qualifications will be evaluated based on whether they meet the required qualifications or exceed them. Qualification points will be assigned as follows: 0 for not meeting qualifications, 1 for meeting qualifications, and 2 for exceeding qualifications.

Following this review, city staff will conduct on-site visits to the prospective tow yard and office locations.

The City reserves the right to withdraw this RFQ at any time without prior notice. Further, the City reserves the right to modify the RFQ schedule described below. The City also makes no representations that any contract will be awarded to any firm responding to this RFQ. The City expressly reserves the right to reject any and all SOQs without indicating any reasons for such rejection(s), to waive any irregularity or informality in any SOQ or in the RFQ procedure January 21, 2025 Regular CC Mtg Page 344 of 518
and to be the sole judge of responsiveness to this RFQ.

Evaluation Criteria:

After review for compliance with required qualifications, the City will evaluate SOQs based on the following criteria.

General Quality and Responsiveness of the SOQ
 Presentation, completeness, and thoroughness of the SOQ;  Responsiveness to the terms, conditions, and items of performance; and  Grasp of the scope and services to be performed
Qualifications and Experience of Firm and Key Personnel  Qualification and experience of key personnel;
 Experience and past performance for similar scope and services; and  Verification of references
Fee Proposal
 Each firm should provide a schedule of fees for related services for each of the next five years.

Tentative Schedule:

The City reserves the right to make changes to the below schedule, but plans to adhere to the implementation of this RFQ process as follows:

Date Activity
Thursday, September 26, 2019January 30, 2025 Issue Request for Qualifications Monday, October 21, 2019Friday, February 28, 2025 SOQs Due to the City
Monday, November 18, 2019April 7, 2025 City Council Consideration of Contract Award Attachments:

1. SFPD Tow Listing Application

2. Civil Litigation History

3. False Claims Act Certification Form
January 21, 2025 Regular CC Mtg Page 345 of 518
ATTACHMENT 1

SFPD TOW LISTING APPLICATION

BUSINESS

1. BUSINESS NAME AND MAILING ADDRESS TELEPHONE NUMBER(S)

2. DAY

3. NIGHT

4. BUSINESS ADDRESS IF DIFFERENT THAN ABOVE 5. AUTOMOBILE CLUB AFFILIATIONS

6. DO YOU HAVE 24 HOURS A DAY SERVICE?  YES  NO

7. YEARS IN THE TOWING BUSINESS

8. HAVE YOU OR ANYONE FIANCIALLY INVOLVED WITH YOUR COMPANY EVER BEEN CONVITED OF A FELONY

INVOLVING STOLEN OR EMBEZZLED VEHICLES, STOLEN PROPERTY, FRAUD RELATED TO THE TOWING BUSINESS, OR MORAL TURPITUDE? IF YES, PLEASE ATTACH A WRITTEN EXPLANATION  YES  NO

VEHICLE STORAGE

9. PRIMARY STORAGE YARD (COMPLETE ADDRESS)  OWNED
 LEASED
 RENTED

DISTANCE FROM

SAN FERNANDO
MILES

10. SECONDARY STORAGE YARD (COMPLETE ADDRESS)  OWNED
 LEASED
 RENTED

DISTANCE FROM

SAN FERNANDO
MILES

11. IS STORAGE YARD FENCED (6’), LIGHTED?

 YES  NO

12. IS DISPATCHER ON DUTY 24 HOURS/DAY, SEVEN DAYS/WEEK, 365 DAYS/YEAR?  YES  NO

13. IS THERE A SECURE INVESTIGATIVE HOLD AREA?

 YES  NO

FINANCIAL INTERST

14. LEGAL OWNER (PERSON(S), FIRM, COMPANY, ASSOCIATION OR CORPORATION)

15. DO YOU HAVE FINANCIAL INTEREST IN ANY OTHER TOW COMPANY WITHIN SAN FERNANDO?  YES  NO

16. DOES ANY MEMBER OF YOUR FAMILY OPERATE ANOTHER TOW SERVICE IN SAN FERNANDO?  YES  NO

17. DO YOU SHARE ANY FACILITIES WITH ANY OTHER LICENSED TOW COMPANY?  YES  NO

18. IF THE ANSWER TO ANY OF THE ABOVE IS YES, PROVIDE NAME OF THE TOW COMPANY

TOW TRUCKS
 CLASS A (14,000 – 19,500 GVWR)
 CLASS C (33,001 – 50,000 GVWR)
 CLASS B (19,501 – 33,000 GVWR)
 CLASS D (OVER 50,001)

19. IS AT LEAST ONE CLASS A TRUCK, EITHER A WHEEL LIFT OR A CAR CARRIER?  YES  NO

SIGNATURE PRINT OR TYPE NAME AND TITLE DATE
911/26/192024
January 21, 2025 Regular CC Mtg Page 346 of 518
ATTACHMENT 2

CIVIL LIGITATION HISTORY/CIVIL LITIGATION CERTIFICATION FORM

CITY OF SAN FERNANDO

CITY HALL
117 MACNEIL STREET
SAN FERNANDO, CALIFORNIA 91340

CIVIL LITIGATION HISTORY/ CIVIL LITIGATION CERTIFICATION (TOWING AND VEHICLE STORAGE SERVICES RFP)
Proposer shall provide either the certification requested below or information requested on the next page.

Failure to provide such certification or information may result in a determination that the Proposer is nonresponsive. Failure to fully and accurately provide the requested certification or information may result in a determination that the Proposer is not responsible and City may reject the proposal on this basis as well.

For the five (5) years preceding the date of submittal of this Proposal, identify any civil litigation arising out of the performance of a procurement contract within the State of California in which any of the following was a named plaintiff or defendant in a lawsuit brought by or against the entity soliciting Proposals: the Proposer submitting the instant Proposal, including any person who is an officer of, or in a managing position with, or has an ownership interest in the entity submitting the Proposal. Do not include litigation which is limited solely to enforcement of mechanics' liens or stop notices. Provide on the following page labeled “Civil Litigation History Information:” (i) the name and court case identification number of each case, (ii) the jurisdiction in which it was filed, and (iii) the outcome of the litigation, e.g., whether the case is pending, a judgment was entered, a settlement was reached, or the case was dismissed.

CIVIL LITIGATION CERTIFICATION
If the Proposer has no civil litigation history to report as described above, complete the following:

I, , am the
(Print name of person responsible for submitting Proposal) (Title with Proposing Entity) of (hereinafter,
“Proposer”) (Print Name of Proposing Entity)
In submitting a Proposal to the City of San Fernando for As-Needed Engineering Proposer Services, I, hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has been involved in civil litigation as described, above.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
by
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) January 21, 2025 Regular CC Mtg Page 347 of 518

CIVIL LITIGATION HISTORY INFORMATION
(1) Name of Case:

Court Case Identification Number:
(2) Jurisdiction in which case was filed:
(3) Outcome of the case:
(1) Name of Case:

Court Case Identification Number:
(2) Jurisdiction in which case was filed:
(3) Outcome of the case:

DECLARATION
I, , the
(Print name of person responsible for submitting proposal) (Title with proposing entity)
of (hereinafter, “Proposer”)
(Print Name of Proposing Entity)
Declare under penalty of perjury that the above information is true and correct.

Executed this day of at
(month and year) (city and state)
by:
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer)

END OF DOCUMENT
January 21, 2025 Regular CC Mtg Page 348 of 518
ATTACHMENT 3

FALSE CLAIMS/FALSE CLAIMS ACT CERTIFICATION FORM

CITY OF SAN FERNANDO

CITY HALL
117 MACNEIL STREET
SAN FERNANDO, CALIFORNIA 91340

FALSE CLAIMS/FALSE CLAIMS ACT CERTIFICATION
(TOWING AND VEHICLE STORAGE SERVICES RFP)
Proposer shall provide either the certification requested below or the information requested on the next page. Failure to certify or provide the requested information may result in a determination that the Proposer is non-responsive and City may reject the proposal on this basis. Failure to fully and accurately provide the requested certification or information may result in a determination that the Proposer is not responsible and City may reject the proposal on this basis as well. “False Claims Act”, as used herein, is defined as either or both the Federal False Claims Act, 31 U.S.C. Sections 3729 et seq., and the California False Claims Act, Government Code Sections 12650 et seq.

FALSE CLAIMS ACT CERTIFICATION
If the Proposer has no False Claims Act violations as described above, complete the following:

I, , am the _
(Print name of person responsible for submitting proposal) (Title with proposing entity) of _
(hereinafter, “Proposer”).
(Print Name of Proposing Entity)
In submitting a proposal to the City of San Fernando, I, hereby certify that neither Proposer nor any person who is an officer of, in a managing position with, or has an ownership interest in Proposer has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act as defined above.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this day of at
(month and year) (city and state)
By
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer) January 21, 2025 Regular CC Mtg Page 349 of 518

FALSE CLAIMS ACT VIOLATIONS INFORMATION
(1) Date of Determination of Violation:
(2) Identity of tribunal or court and case name or number, if any:
(3) Government Contract or project involved:
(4) Government agency involved:
(5) Amount of fine imposed:
(6) Exculpatory Information:

DECLARATION
I, , the
(Print name of person responsible for submitting proposal) (Title with proposing entity) of (hereinafter, “Proposer”)
(Print Name of Proposing Entity)
Declare under penalty of perjury that the above information is true and correct.

Executed this day of at
(month and year) (city and state)
By:
(Signature of Person Responsible for Submitting Proposal on behalf of Proposer)

END OF DOCUMENT
January 21, 2025 Regular CC Mtg Page 350 of 518
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This Page
Intentionally
Left Blank
January 21, 2025 Regular CC Mtg Page 352 of 518

AGENDA REPORT
CITY CLERK DEPARTMENT 117 MACNEIL STREET, SAN FERNANDO, CA 91340 (818) 898-1204 WWW.SFCITY.ORG REVIEW: ☒ Finance Director ☒ Deputy City Manager ☒ City Manager To: Mayor Mary Mendoza and Councilmembers
From: Nick Kimball, City Manager
By: Erika Ramirez, Director of Community Development
Date: January 21, 2025
Subject: A Continued Public Hearing to Consider Adopting an Ordinance Amending Chapter 106 (Zoning) of the San Fernando Municipal Code to Establish the Mixed Use Overlay Zone; Adopt an Ordinance Amending the Zoning Map to Add the MixedUse Overlay to Certain Properties in the C-1 and C-2 Zone Districts and Adopt a California Environmental Quality Act Mitigated Negative Declaration Addendum; and Continue to a Date Uncertain the adoption of an Ordinance Amending the San Fernando Corridors Specific Plan (SP-5) Figure 4.1 – City Land Use Districts and Overlays Map to Add the Downtown Residential Overlay and Flex Use Overlay to 12 Parcels and Adopting Mitigated Negative Declaration Addendum RECOMMENDATION:

It is recommended that the City Council:
a. Conduct a Public Hearing;
b. Pending public testimony, approve introduction for first reading, in title only, and waive further reading of Ordinance No. 1728 (Attachment “A”) titled, “An Ordinance of the City Council of the City Of San Fernando, California amending Chapter 106 (Zoning) of the San Fernando Municipal Code to establish the Mixed Use Overlay Zone”; and c. Introduce for first reading, in title only, and waive further reading of Ordinance No. 1730 (Attachment “B”) titled, “An Ordinance of the City Council of the City Of San Fernando, California amending the Official City Zoning Map of the City of San Fernando to add the Mixed Use Overlay to certain properties in the C-1 and C-2 Zone Districts; and adopting a California Environmental Quality Act Mitigated Negative Declaration Addendum”; and d. Continue to a date uncertain, the introduction for the first reading of Ordinance No. 1729 (Attachment “D”) titled “An Ordinance of the City Council of the City of San Fernando, California amending the Corridors Specific Plan (SP-5) Figure 4.1 – City Land Use Districts and Overlays Map to Add the Downtown Residential Overlay and Flex Use Overlay to 12 Parcels and adopting a California Environmental Quality Act Mitigated Negative Declaration Addendum”.

January 21, 2025 Regular CC Mtg Page 353 of 518
A Continued Public Hearing to Consider Adopting an Ordinance Amending Chapter 106 (Zoning) of the San Fernando Municipal Code to Establish the Mixed Use Overlay Zone; Adopt an Ordinance Amending the Zoning Map to Add the Mixed-Use Overlay to Certain Properties in the C-1 and C-2 Zone Districts and Adopt a California Environmental Quality Act Mitigated Negative Declaration Addendum; and Continue to a Date Uncertain the adoption of an Ordinance Amending the San Fernando Corridors Specific Plan (SP-5) Figure 4.1 – City Land Use Districts and Overlays Map to Add the Downtown Residential Overlay and Flex Use Overlay to 11 Parcels and Adopting Mitigated Negative Declaration Addendum

BACKGROUND:

1. On June 6, 2022, the City Council adopted Resolution No. 8153 approving and adopting the City of San Fernando 2021-2029 Housing Element, which includes a Housing Plan with Goals, Policies, and Programs aimed at addressing the City’s housing needs.

2. In 2022, the State Legislature passed Assembly Bill (AB) 1398, which requires jurisdictions to implement actions in their Housing Plan and provides appropriate zoning for these housing opportunity sites no later than October 2024.

3. On September 9, 2024, staff prepared a presentation for the Planning and Preservation Commission and Community to facilitate a workshop discussion. The Planning and Preservation Commission discussed the Mixed Use Overlay/Specific Plan projects, providing their feedback for the ordinances.

4. On October 14, 2024, a public hearing was held before the Planning and Preservation Commission to consider and provide a recommendation to the City Council on the proposed Mixed Use Overlay ordinance and Specific Plan amendment. There were no public speakers.

5. On November 18, 2024, a public hearing was held before the City Council to consider a Mixed Use Overlay ordinance and Specific Plan amendment. There were two (2) business owner that provided public comments in opposition of proposed ordinance 1729, an amendment to Corridors Specific Plan (SP-5) Figure 4.1, that would, among other things, apply the Flex Use Overlay to properties along First Street to allow residential uses. The City Council directed staff to provide additional information and continued the public hearing to December 4, 2024.

6. On December 2, 2024, a public hearing was held before the City Council to consider a Mixed Use Overlay ordinance and Specific Plan amendment. The City Council directed staff to provide additional information and continued the public hearing to January 21, 2025.

ANALYSIS:

The Housing Element of the City's general plan serves as a comprehensive framework for addressing the housing needs of the community across all income levels, as set by the state of California. It outlines the City’s policies, goals, and programs to create, preserve, and improve housing opportunities and affordability. This element is crucial in meeting state-mandated January 21, 2025 Regular CC Mtg Page 354 of 518
A Continued Public Hearing to Consider Adopting an Ordinance Amending Chapter 106 (Zoning) of the San Fernando Municipal Code to Establish the Mixed Use Overlay Zone; Adopt an Ordinance Amending the Zoning Map to Add the Mixed-Use Overlay to Certain Properties in the C-1 and C-2 Zone Districts and Adopt a California Environmental Quality Act Mitigated Negative Declaration Addendum; and Continue to a Date Uncertain the adoption of an Ordinance Amending the San Fernando Corridors Specific Plan (SP-5) Figure 4.1 – City Land Use Districts and Overlays Map to Add the Downtown Residential Overlay and Flex Use Overlay to 11 Parcels and Adopting Mitigated Negative Declaration Addendum

requirements, ensuring the provision of adequate land for residential development, and promoting fair housing practices. In the current Housing Element, the City considered potential development on suitable sites and identified how zoning and development standards on the sites will facilitate housing. From this inventory, the City identified commercial zoned sites and Specific Plan sites as “Opportunity Sites” for future housing development.

The City Council reviewed and provided feedback to the ordinances proposed by staff to implement the programs identified in the City’s certified Housing Element on November 18, 2024, and December 4, 2024. Based on the feedback from City Council and community stakeholders, staff revised the scope and applicability of the proposed Mixed-Use Overlay and the Specific Plan amendment. The proposed revisions are discussed below.

Mixed-Use Overlay.

A typical mixed-use overlay zone is designed to promote development that combines residential, commercial, and sometimes industrial uses within a designated area. These overlays typically allows for flexible zoning standards that encourage a blend of uses in close proximity, maximizing land use efficiency, reducing reliance on car travel, and supporting economic vitality and social interaction. By facilitating a mix of uses, these overlay zones are intended to help create lively neighborhoods, enhance urban design, and support sustainable development goals.

Mixed-Use Overlay Zone
The proposed Mixed-Use Overlay (MUO) would be applied on top of the existing commercial zone, thereby creating flexibility for existing commercial properties by allowing 100% commercial development, 100% residential development, or mixed-use development. Commercial properties can continue with their current uses without changes to existing permitted uses or requirements. Additionally, the MUO permits 100% residential developments with a density range of 20-35 dwelling units per acre (du/ac).

Proposed Revisions to the Mixed Use Overlay Text
Based on Council feedback and comments and text required by HCD, the final proposed zoning code text amendment includes the following edits:
• Residential uses shall occupy a minimum of 50% of the project’s total gross floor area. • Materials and Colors.
o The street-facing façade shall use at least two different façade materials and colors, each covering a minimum of 20 percent of the street-facing façade.

January 21, 2025 Regular CC Mtg Page 355 of 518
A Continued Public Hearing to Consider Adopting an Ordinance Amending Chapter 106 (Zoning) of the San Fernando Municipal Code to Establish the Mixed Use Overlay Zone; Adopt an Ordinance Amending the Zoning Map to Add the Mixed-Use Overlay to Certain Properties in the C-1 and C-2 Zone Districts and Adopt a California Environmental Quality Act Mitigated Negative Declaration Addendum; and Continue to a Date Uncertain the adoption of an Ordinance Amending the San Fernando Corridors Specific Plan (SP-5) Figure 4.1 – City Land Use Districts and Overlays Map to Add the Downtown Residential Overlay and Flex Use Overlay to 11 Parcels and Adopting Mitigated Negative Declaration Addendum

o All façade materials and colors, such as siding, window types, and architectural details, used on the street-facing façade shall be used on all other building façades. • Tree Requirements. All new development projects shall provide a minimum one 15- gallon, native canopy tree within a street facing setback when feasible, in accordance with Division 4 of Article III. If a street facing setback cannot contain a tree, the tree shall be provided on other areas of the site.
• Affordable Projects. Housing development projects with 20% affordable units shall be processed ministerially1 under the Zone Clearance, Streamlined Development process. • Studies Required.
o As part of the Zone Clearance, Site Plan Review or Conditional Use Permit submittal for residential development, the applicant shall submit a copy of a sewer and water capacity analysis prepared by a licensed engineer that shows that existing or proposed sewer and water infrastructure is adequate to support operations of the mixed use development.
o As part of the Site Plan Review or Conditional Use Permit submittal, the applicant shall submit a copy of a fiscal analysis that provides a detailed evaluation of the potential financial impacts on municipal services, including any projected increase in costs of providing municipal services like police, fire, public works, and code enforcement services.

Ordinance No. 1728 would approve amending the City’s zoning code to establish the MUO Zone as described above.

Proposed Revisions to the Mixed Use Overlay Map
As part of the 6th Cycle Housing Element update, cities were required to identify sites that could accommodate the development capacity needed to meet their Regional Housing Needs Allocation (RHNA) across all income levels. To support this, the City’s 2021-2029 Housing Element included applying the Mixed-Use Overlay (MUO) as a key action to achieve its housing goals (Goal

5.0, Policy 5.1). The MUO was originally proposed for 112 parcels, covering 37.95 acres, within the C-1 and C-2 zones to promote the redevelopment of commercial areas with residential uses.

1 A ministerial review means that a project is reviewed to make sure it meets all the basic rules and requirements (like zoning laws or building codes). This type of review is straightforward and does not involve judgement or “discretion” by City staff or officials. If the project follows all the rules, it gets approved without public hearings.

January 21, 2025 Regular CC Mtg Page 356 of 518
A Continued Public Hearing to Consider Adopting an Ordinance Amending Chapter 106 (Zoning) of the San Fernando Municipal Code to Establish the Mixed Use Overlay Zone; Adopt an Ordinance Amending the Zoning Map to Add the Mixed-Use Overlay to Certain Properties in the C-1 and C-2 Zone Districts and Adopt a California Environmental Quality Act Mitigated Negative Declaration Addendum; and Continue to a Date Uncertain the adoption of an Ordinance Amending the San Fernando Corridors Specific Plan (SP-5) Figure 4.1 – City Land Use Districts and Overlays Map to Add the Downtown Residential Overlay and Flex Use Overlay to 11 Parcels and Adopting Mitigated Negative Declaration Addendum

Following City Council direction on December 2, 2024, staff and the consultant team reviewed the parcels identified in the Housing Element and revised the proposed map to reduce the total number of parcels where the MUO would apply. In order to address Council’s concerns of increased density in close proximity to low density residential areas, the proposed parcels along S. Brand Avenue (south of Hollister Street) were removed from the proposed zoning map amendment. Furthermore, the parcels owned by Los Angeles County near City Hall were excluded from the proposed zoning map amendment due to the low probability of residential development. This adjustment reduced the total number of parcels by 26, resulting in a revised proposal of 86 parcels, totaling 28.53 acres, in the C-1 and C-2 zones for the MUO. A map of the revised parcels is included as Exhibit “A” to Attachment “A”.

Ordinance No. 1730 would approve amending the City’s Official Zoning Map to add the MUO to those identified properties and adopt an addendum to the adopted Mitigated Negative Declaration (MND) in accordance with the California Environmental Quality Act (CEQA).

Property owners of C-1 or C-2 parcels not included in the 86 parcels identified through the Housing Element may in the future apply for the overlay to be added. This would require a Zoning Amendment application to be processed by the Planning Division, subject to review and recommendation from the Planning and Preservation Commission, and approval from the City Council.

SP-5 Amendment
A specific plan provides a tailored regulatory framework to guide development in a defined area, often with unique goals or vision, aligning with the City’s General Plan. It includes detailed standards, policies, and design guidelines that address the unique characteristics and needs of the specific area. Specific plan can address land use, infrastructure, design, and community amenities, promoting cohesive and context-sensitive development while allowing for flexibility to adapt to changing conditions or objectives within the specific area.

The City’s Corridors Specific Plan (SP-5) supports residential development and increases housing capacity through existing overlay districts. Parcels in the SP-5 were also identified as part of the 2021-2029 Housing Element Goal 5, Policy 5.1 to meet the City’s RHNA of 1,795 units. To achieve RHNA, existing overlays were originally proposed for specific parcels in the SP-5. A map showing these parcel is included as Exhibit A of Attachment “D”.

Due to concerns expressed during the public hearings regarding residential uses on First Street, staff has reached out to HCD to determine if these sites can be replaced with other sites within SP-5. In order, to continue the conversation with HCD to address community concerns and explore alternative sites within SP-5, staff requests the continuance of Ordinance 1729.

January 21, 2025 Regular CC Mtg Page 357 of 518
A Continued Public Hearing to Consider Adopting an Ordinance Amending Chapter 106 (Zoning) of the San Fernando Municipal Code to Establish the Mixed Use Overlay Zone; Adopt an Ordinance Amending the Zoning Map to Add the Mixed-Use Overlay to Certain Properties in the C-1 and C-2 Zone Districts and Adopt a California Environmental Quality Act Mitigated Negative Declaration Addendum; and Continue to a Date Uncertain the adoption of an Ordinance Amending the San Fernando Corridors Specific Plan (SP-5) Figure 4.1 – City Land Use Districts and Overlays Map to Add the Downtown Residential Overlay and Flex Use Overlay to 11 Parcels and Adopting Mitigated Negative Declaration Addendum

December 2, 2024 City Council Meeting.

At a public hearing on December 2, 2024, the proposed MUO and amendment to SP-5 were presented to the City Council. The City Council continued the public hearing to January 21, 2025, requesting staff to provide additional information. A presentation will be provided to Council at the January 21, 2025, to address the following:
• Information related to the environmental impacts as identified in the Mitigated Negative Declaration for the Housing Element;
• Re‐evaluate properties to be included in the mixed-use overlay zone while meeting the RHNA requirements; and
• Research other cities that have filed lawsuits challenging their Regional Housing Needs Allocation (RHNA) allocation.

Public Comments:

Public comments were provided by business owners, expressing concerns about the amendment to SP-5 that proposes applying the Flex Use Overlay to properties along First Street. In addition, there was a comment in support of the amendments emailed to the City Council. The SP-5 amendment will be presented to the City Council at a later date for further consideration.

Next Steps.

If ordinances 1728 and 1730 are adopted, they will be submitted to HCD for review and approval.

If ordinance 1729 is continued to a date uncertain, staff will continue working with HCD to explore alternative sites within SP-5. The proposed amendment will be presented to the City Council for consideration at a later date.

Public Hearing Notice.

Public notice for November 18, 2024, was provided in accordance with San Fernando Municipal Code Section 106-72. The public hearing was continued to December 2, 2024, and then to January 21, 2025.

January 21, 2025 Regular CC Mtg Page 358 of 518
A Continued Public Hearing to Consider Adopting an Ordinance Amending Chapter 106 (Zoning) of the San Fernando Municipal Code to Establish the Mixed Use Overlay Zone; Adopt an Ordinance Amending the Zoning Map to Add the Mixed-Use Overlay to Certain Properties in the C-1 and C-2 Zone Districts and Adopt a California Environmental Quality Act Mitigated Negative Declaration Addendum; and Continue to a Date Uncertain the adoption of an Ordinance Amending the San Fernando Corridors Specific Plan (SP-5) Figure 4.1 – City Land Use Districts and Overlays Map to Add the Downtown Residential Overlay and Flex Use Overlay to 11 Parcels and Adopting Mitigated Negative Declaration Addendum