Santa Maria City Council
October 17, 2023

SANTA MARIA
ee
Mayor Alice M. Patino
Mayor Pro Tem Maribel Aguilera-Hernandez
Councilmember Mike Cordero
Councilmember Carlos Escobedo
Councilmember Gloria Soto
Smart City
Safe City
Interim City Manager Alex Posada
City Attorney Thomas Watson
Assistant City Clerk Alexandra Valadez

CITY COUNCIL AGENDA

CITY OF SANTA MARIA, CALIFORNIA
Tuesday, October 17, 2023
CLOSED SESSION - 4:30 P.M.

REGULAR SESSION - 5:30 P.M.

Oral Comments during the meeting:
• In -person format. Attend the meeting in -person in the City Hall Council Chambers at 110 East Cook Street, Santa Maria, and submit a request to speak to the Clerk or City staff. • Zoom Meeting Portal. Participate via Zoom to register to speak during the Public Comment portion of the meeting or on a particular Agenda Item. Use the Zoom link below or dial -in via telephone.

Zoom link: https://us02web.zoom.us/webinar/register/WN_J07tssSbQnag8aYLWD2FvQ Dial Phone #: 1-669-900-9128**
Webinar ID #: 856 2126 4380
**Press *6 to un-mute your phone. Press *9 to raise your hand to speak.

Watch an instructional Video on Participating using Zoom.

Public Written Comments prior to the meeting (must be received by 2:00 p.m. in advance of the meeting*):
• Email - Submit Comments via email to cityclerk©cityofsantamaria.org. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting.
• Mail - Delivered by the U.S. Postal Service. Address letters to the City Council, Attn.: City Clerk's Office at 110 East Cook Street, Santa Maria, CA 93454. Letters will not be read aloud during the meeting.
*All written correspondence will be distributed to Councilmembers and attached to the associated meeting agenda (under Public Comment or Agenda Item); however, submissions received after the deadline will not be processed until the following day.

How to watch the meeting from home:

1. Comcast Channel 23 - Live during the meeting, and rebroadcast on Thursday at 9:00 a.m. after the meeting and again on Tuesday at 5:30 p.m. the following week.

2. Live Webcast - Online from the Agenda Center & Meetings Portal (select meeting date) or at https://video.isilive.ca/santamaria/live.html . Note - When no meeting is streaming, the window

Staff Presentation
Water and Sewer Rates
Regular Meeting of City Council
October 17, 2023, 5:3o p.m.
i11
Ina -

CITY OF SANTA MARIA
Utilities;
Department 1111
(805] 925-0951 ext. 7270 www.cit ofsantamaria.or.

Agenda
Staff Presentation
- Division Overview
- Rate Setting Process
- Proposed Rates
•
11 Public Hearing
i•i
Council Action

Division Overview
Water Resources
19,913 Customers
Personnel
36 operations field staff
Spurs, Operators, MWs
12 admin/technical staff
Eng, IT, Reg Comp
i water resources manager

Division Overview —Water Resources
• Wat Production
Sourerces: Groundwater, State
Water Project
12 MGD average production
(Peak 20 MGD)
• Water System Components
Blending & Disinfection Facility
Water wells
State Water Project infrastructure
Storage reservoirs
Water Distribution
33o+ miles of pipe
23, 220+ water meters
3,60o+ fire hydrants
Sewer Collection
250+ miles of pipe
4,245+ manholes
1 lift station
Wastewater Treatment
Average flow 7.5 MGD
Permitted Capacity 8 MGD

COST -BASED RATES
Revenue
Requirement
1 Cost of Service
Rate Design
Rate Setting Process
Notice
Requirements
Majority Protest
Provision
Council Action
PROPOSITION 218

PROJECTS
EXPG�JSiS
Revenue Requirements
Uses prudent financial
planning criteria
Reviews a specific
time period
Utilizes "cash basis"
methodology
Principles of Water
Rates, Fees and, Charges

FINANCING AND CHARGES FOR

WASTEWATER SYSTEMS
hwef Alarwnl of Pt.., No 27

• Rate (revenue) adjustments necessary
Reflects need to prudently fund annual O&M expenses
• Water supply and reliability
• Infrastructure costs
Adequately fund annual infrastructure renewal and
replacement - SWP
• Meet ending reserve targets
Maintain strong reserve levels
Meet operating cashflow needs and fund capital
improvements
Recruiting and retaining trained, certified staff
• Technology for improved operations, meet user
expectations
• Revenue impacts due to water conservation, declining
Wiper capita usage

Water Revenue Requirement Summary - $000s
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
- -------
FY 2023-24
Total O & M
Reserve Funding
;111111
....•••••4"..

FY 2024-25
Net Debt Service
--- Total Revenues + Add'I Rev
FY 2025-26
FY 2026-27
Rate Funded Capital

Revenue
Requirements
Summary -
Wastewater
Rate (revenue) adjustments necessary
Reflects need to prudently fund annual O&M
expenses
Adequately fund annual infrastructure renewal
and replacement
Wastewater treatment system upgrade
requirements
Regulatory requirements and improvements
• Meet ending reserve targets
Maintain strong reserve levels to mitigate risk
related to fund capital improvements, long-
term debt issuance, etc.

Debt service coverage ratio 1.20%
Recruiting and retaining trained, certified staff
Technology for improved operations, meet user
expectations

Wastewater Revenue Requirement Summary - $000s
$25,000
$20,000
$15,000
$10,000
$5,000
$0
"
_.....

FY 2023-24
Total O& M
Reserve Funding
FY 2024-25
Net Debt Service
--- Total Revenues + Add'I Rev
FY 2025-26
FY 2026-27
Rate Funded Capital

Prop 218
Requirements
For property -related rates and fees
Requires a cost -basis for establishing rates:

Reasonable
Proportional
Cost -based
Requires public notification and protest
process

�.•. it I I i'L
What is it lip Why we do it
Analysis to
proportionally
distribute the
revenue
requirement to the
customer classes of
service of each
utility
Generally accepted
as "fair and
equitable"
Avoids subsidies
Revenues reflect
costs
Meets the
proportionality
requirements of
Proposition 218
Objectives
Determine if
subsidies exist
Develop average
unit costs

Cost of Service Study Results
Water
Cost differences exist for the water cost of service
Need to reflect recent legal decisions
Calculation of rates - fixed charge and variable tiered rate
• Proposed rates based on unit costs as developed in
the cost -of -service analysis
Meets the requirement of Proposition 218

A
(')
$
Rate Design Basis - Water
Moving from three customer
classes to a single class of service
Fixed charge by meter size
Variable charge varies by
consumption
Reflects recent customer usage data (Mobile
Home)
Reflects changes in operations to serve
specific customers (Well Water)
All customer charged the same meter rate by
meter size
Based on cost -of -service unit costs
All customers charged same for tiered water
use
Based on cost -of -service consumption costs

Proposed Rates - Water
Water
Use
0 -5 Un its
6-15 Units
16+ Units
Tier
Current
Rate
Effective
01/01/24
Effective
01/01/25
Effective
01/01/26
Effective
01/01/27
General Use
1 2
3 5.37

5.57 5.97
$ 5.63

5.82 6.19
$ 5.89

6.09 6.48

6.12 6.33

6.74 6.33

6.55 6.97
Mobile Home Park Use
0-5 Units
6+ Units
1 2

4.80 5.40
See General Use

1 0
m
in
4u
ce
-o
>%

4.-)
a)
V
.

W
V)
0 V1
0 V

cu
4--I
(0
cU
0 ro
a)
L
0 Li —
In
X
Q)
0 CU
u
c
CU
1_
CU
Li—
L—
(73
0 u
cost of service
c
0 . (
. 0
Q)
(0
0)
Q)
-I--)
c
CU
CU
L
V
CU
4-
CJ
0 CU
CU
z
Q)
(B
ro
>
c
ro
a)
cn
ro
cu
c-
1 (!)
4-J
ro
-
0 c
0 (6
D
u
(6
u
la .)
ro
0 Q)
In
ro
a)
ro
l_
a) 0-
v) O
O
o- a)
O >
L cu
0_ -0
l!1
0 U
CU
s
4-1
. c
CU
00 H
N
c
0 0
0_
0 a_
q-
0 c
cu
E
cu
L
D
Cr
Q)
4--)
.U;
Q)
Q)
2 Rate Design Basis - Wastewater
S
A
I I
II
Maintained customer classes
Combined non -single family
residential customer classes
Reflect recent customer usage
data
Single Family Residential, Motel,
Hotel, Rest Home, & Commercial;
and Heavy User
Apartments (2 or <), Apartments (3+),
& Mobile Home = Multi -Family

Proposed Rates —Wastewater (Sewer)
Type
Current
Rate
.

Effective
01/01/24
Effective
01/01/25
Effective
01/01/26
Effective
01/01/27
Single -Family Residential
Per account
$28.36
$ 32.07
$ 36.40
$ 40.48
$ 48.62
Multi -Family Residential
Per unit

21.80 21.27

24.14 26.84

32.24 Hotels, Motels, Rest Homes
Per unit

15.40 14.91

16.93 18.83

22.61 Apartment/
Multi -Family 3 Rooms

17.58 Mobile Home
Per space

24.34 Proposed Rates —Wastewater (Sewer)
Type
Current
Rate
($/CCF)
Effective
01/01/24
Effective
01/01/25
Effective
01/01/26
Effective
01/01/27
Commercial -I ($/CCF)
$ 3.07
$ 3.73
$ 4.10
$ 4.74
$ 5.63
Commercial -II ($/CCF)

4.20 4.89

5.37 6.21

7.38 Heavy Users:

Consumption Charge ($ICCF)
$ 1.32
$ 1.35
$ 1.53
$ 1.73
$ 2.02
BOD ($/Ib.)

0.60 0.48

0.54 0.61

0.71 SS (s/lb.)

0.64 0.56

0.64 0.72

0.84 Regional Comparison -
Water/Sewer (Combined)
SLO $294
Lompoc $276
Santa Barbara $250
Montecito $242
Morro Bay $234
Paso Robles $226
Solvang $220
Santa Paula $214
Pismo Beach $191
Santa Ynez $184
Goleta $184
Nipomo $174
Santa Maria January 2027 $165
Cuyama $159
Orcutt $159
Casmalia $156
Carpinteria $149
Los Alamos CSD $143
Mission Hills CSD $141
Santa Maria January 2024 $136
Ventura $136
Guadalupe $126
Arroyo Grande $122
Salinas $113
Vandenberg CSD $113
Grover Beach $108
Buellton $96

Summary and Next Steps
✓ 2019-2023: Cost of Service Study conducted
It August 2023: Prop 218 Notices mailed
✓ September 27, 2023: Public Workshop held
October 17, 2023: Public Hearing, Council Action

Public Hearing Procedure
Provide number of written protests
Requirements for majority protest (>9,958)
Open Public Hearing (opportunity to comment)
Final call for protests
Close comment period
Determine whether majority protest exists
Provide # of final valid written protests
Re -state requirements for majority protest
If no majority protest, City Council MAY adopt
proposed rates

Staff Recommendation
✓ Receive a Staff Presentation regarding proposed rates; ✓ Conduct a Public Hearing;
✓ Determine whether a majority protest exists;
CI Introduce an Ordinance for a first reading continue for a second reading and adoption at the next regular
meeting of the City Council, approving water and
sewer rates effective each January 1 from 2024
through 2027.

will read "Searching for live stream."

3. You Tube Live Stream - You Tube Webcast.

Note: Live Webcast and You Tube Live are typically available within 15 minutes before the start of the meeting. There is a delay of about 15-30 seconds with both the Live Webcast and You Tube Live Stream.

4. Zoom Meeting Portal - Registration is required (link above) even for observing the meeting.

American Disability Act Accommodations:

Any member of the public who needs accommodations should email the City Clerk's Office at cityclerk(a�cityofsantamaria.orq or call 805-925-0951 x2306. The City Clerk's Office will use its best efforts to provide reasonable accommodation by request at least 48 hours ahead of the meeting.

CLOSED SESSION

1. CALL TO ORDER
ROLL CALL: Councilmember Aguilera-Hernandez, Councilmember Cordero, Councilmember Escobedo, Councilmember Soto, and Mayor Patino

2. PUBLIC COMMENT PERIOD
In -person oral comments will be accepted during this time. There is no Zoom participation available for the Closed Session Public Comment period. Written comments may be submitted per the instructions above.

3. RECESS -CLOSED SESSION
The City Council will immediately recess to a closed session for the following:

3.a Public Employment Recruitment - City Manager, Pursuant to California Government Code Section 54957(b)(1)

3.b Conference with Labor Negotiators pursuant to Section 54957.6 of the Government Code
Agency representatives: Interim City Manager Alex Posada and Interim Chief Human Resources Officer Dawn Jackson.

Employee Organizations: All bargaining units, unrepresented employees, managers, and executives.

4. RECONVENE TO OPEN SESSION
OPEN SESSION - 5:30 P.M.

5. INVOCATION

6. PLEDGE OF ALLEGIANCE

7. CALL TO ORDER
ROLL CALL: Councilmember Aguilera-Hernandez, Councilmember Cordero, Councilmember Escobedo, Councilmember Soto, and Mayor Patino

8. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION

9. PROCLAMATIONS

9.a Proclamation —'World Polio Day" — October 24, 2023
Present a Proclamation recognizing October 24, 2023, as World Polio Day in the City of Santa Maria.

9.b Proclamation — Recognizing October as Arts and Humanities Month Present a Proclamation recognizing October as Arts and Humanities Month in Santa Maria

9.c Proclamation — 100 -Year Anniversary of the Kiwanis Club of Santa Maria — October 2023
Present a Proclamation to recognize the 100 -Year Anniversary of the Kiwanis Club of Santa Maria.

9.d Businesses of the Month — October 2023
The Mayor and City Council will present certificates to the featured Businesses of the Month for October 2023 — Akeso Occupational Health and the Santa Maria Valley YMCA.

10. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
The City Council values your input. Instructions are provided above (page 1) for communicating with the City Council. Individual speakers are limited to three minutes or as directed by the Mayor.

11. CONSENT CALENDAR
The following routine items are presented for City Council approval without discussion as a single agenda item in order to expedite the meeting. The Consent Calendar is approved by roll call vote with one motion. These items are discussed only on request of Councilmembers. Members of the public may speak on Consent Calendar items during the Public Comment Period.

SHOULD A COUNCILMEMBER WISH TO DISCUSS OR DISAPPROVE ANY ITEM, it must be dropped from the blanket motion of approval and considered as a separate item.

RECOMMENDATION:

Adopt the Consent Calendar as submitted.

11.a CITY MANAGER/CITY CLERK DEPARTMENT

11.a.1 Ordinances and Resolutions
RECOMMENDATION:

Waive the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unless City Council indicates otherwise.

11.a.2 Approval of Minutes
RECOMMENDATION:

Approve the Minutes of the regular City Council meeting of October 3, 2023.

11.a.3 Appointment of Representatives for the Central Coast Community Energy Operations Board
The City Council will consider making appointments to the Central Coast

Community Energy Operations Board consisting of Interim City Manager Alex Posada as a Representative, and Interim Assistant City Manager Chuen Wu as an Alternate Representative.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Appoint Interim City Manager Alex Posada as Representative, with Interim Assistant City Manager Chuen Wu as Alternate Representative, to the Central Coast Community Energy Operations Board.

11.b FINANCE DEPARTMENT

11.b.1 Payment of Payroll
RECOMMENDATION:

Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance, and having been approved for payment by the Director of Finance.

11.b.2 Appointment of Deputy City Treasurer
The City Council will consider accepting the appointment of Xenia Bradford as Deputy City Treasurer as of October 21, 2023.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Accept, by Minute Order, the appointment of Xenia Bradford as Deputy City Treasurer as of October 21, 2023, to act as City Treasurer when the City Treasurer Teressa Hall is unavailable. Furthermore, any previous Deputy City Treasurer appointments are to be revoked.

11.c PUBLIC WORKS DEPARTMENT

11.c.1
Award Two Professional Services Agreements for On -Call Construction Management And Inspection Services
The City Council will consider approving the award of On -Call Construction Management to Filippin Engineering, Inc. and Wallace Group. The City has active and pending projects that require technical assistance from firms able to provide Construction Management and Inspection Services. On -Call Construction Management and Inspection Services would also be made available to other departments for funded projects.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

1. Adopt a Resolution awarding a Professional Services Agreement in the amount of $300,000 for On -Call Construction Management and Inspection Services to Filippin Engineering, Inc.; and
RECOMMENDATION:

1. Adopt a Resolution awarding a Professional Services Agreement in the amount of $300,000 for On -Call Construction Management and Inspection Services to Wallace Group.

11.c.2 Acceptance of Public Waterline Easements along West Street The City Council will consider accepting public waterline easement dedications along West Street for the installation of an 8 -inch waterline for the multi -family residential property located at 310 West Street. Mr. Gautam purchased this property in 2016, and it requires tenant improvements, therefore acceptance of the easements for water purposes will allow the continued development of Mr. Gautam's property.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution accepting an easement for water purposes on West Street, along the southerly portion of APN 118-020-004 and along the southerly portion of APN 118-020-006.

12. PUBLIC HEARING
ORDER OF PROCEEDINGS FOR PUBLIC HEARING ITEMS:

Council Agenda Report to be given.

Applicant/Appellant comments.

Questions from the City Council.

Written communications/Public input.

Public hearing to be closed.

City Council discussion and action.

12.a Public Hearing and Approval of Water and Sewer Rates Commencing each January 1 from 2024 through 2027
The City Council will conduct a public hearing and first reading to approve water and sewer rates commencing each January 1 from 2024 through 2027.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

1. Receive a Staff Presentation regarding water and sewer rates;

2. Conduct a Public Hearing;

3. Determine whether a majority protest exists; and

4. If no majority protest exists, introduce an ordinance for a first reading, and

continue for a second reading and adoption at the next regular meeting of the City Council, approving water and sewer rates for the next four years, commencing each January 1 from 2024 through 2027.

13. REPORT BY INTERIM CITY MANAGER

14. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB1234

REPORTS)

15. ADJOURNMENT
PLEASE NOTE:

The next regular meeting of the City Council will be held on November 7, 2023, at 5:30 p.m.

The deadline for submitting items for the November 7th meeting is October 18th.

City Council Meetings are televised live on Comcast cable television channel 23 and are rebroadcast at 9:00 a.m. on the next Thursday and on the following Tuesday at 5:30 p.m.

Council Meeting videos are also available for viewing on the City's website. Your attendance at this public meeting may result in the recording and broadcast of your image and/or voice.

If you challenge a determination made on a matter on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described on this agenda, or in written correspondence to the city council at, or prior to, the public hearing.

CITY COUNCIL MEETING INFORMATION AND PROCESS:

This agenda is prepared and posted pursuant to Government Code Section 54954.2. By listing a topic on this agenda, the City Council has expressed its intent to discuss and act on each item. In addition to any action identified in the summary description of each item, the action that may be taken by the City Council shall include: a referral to staff with specific requests for information; continuance; specific direction to staff concerning the policy or mission of the item; discontinuance of consideration; authorization to enter into negotiations and execute agreements pertaining to the item; adoption or approval; and disapproval. Items not on the agenda may not be discussed or acted upon except under emergency circumstances. (Government Code Section 54954.2).

Copies of the staff reports or other documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk and available for public inspection during City Hall business hours the Friday before the meeting. Any written correspondence or documents provided to a majority of the City Council after distribution of the Agenda will also be available for public inspection in the Office of the City Clerk. If requested, the agenda and supporting documents shall be made available in alternative formats to persons with a disability. The City Clerk's Office will answer any questions regarding the agenda.

Materials related to an item on this agenda submitted after distribution of the agenda packet will also be available with the agenda material for public inspection during normal business hours in the City Clerk's Office, 110 E. Cook Street, Santa Maria. Subject to the ability to post the documents prior to the meeting, such documents will also be available on the City's meetings website portal for the current City Council meeting at https://cityofsantamaria.org/meetings .

The City of Santa Maria welcomes orderly participation at its meetings from all members of the public. Orderly participation means speaking only on items of City business or on subjects within the City's control. Though the City Council wants to hear your concerns and values your input, it is inappropriate to defame, yell, use profane language, interrupt, or disrupt the meeting. All cellular telephones are to be turned off or set to vibrate, and signs are not to be displayed in a manner that violates the rights of others or prevents others from watching or fully participating in the Council meeting. Pursuant to Government Code Section 36813, the Mayor is authorized to prohibit such conduct, up to and including ordering anyone that disrupts the meeting to be removed from the City Council Chambers.

To receive reasonable accommodation under the Americans with Disabilities Act during the meeting, please notify the City Clerk's office of your needs during business hours at least 48 hours in advance of the meeting (typically before 3 p.m. on the Thursday before the meeting). The Office of the City Clerk is located at 110 East Cook Street in Santa Maria; telephone (805) 925-0951, extension 2307. The City will give primary consideration to your request in providing assistance. Examples of assistance may include exhibits in large -sized format, use of assisted listening equipment, use of the California Relay Service, texting by cellular phone, or the services of a live interpreter.

Assisted listening equipment can also be used for interpretation by Spanish -only speaking persons. To allow the City to coordinate and request a Spanish interpreter from the volunteer corps, contact the Office of the City Clerk by 1:00 p.m. on Monday before the meeting.

Equipo tambien puede ser utilizado para la asistencia de interpretacion para esas personas que solamente hablan espanol. Para permitirle a la Ciudad que coordine y solicite un interprete de un grupo de voluntarios, Ilame al (805) 925-0951 extension 2307 a la 1:00 de la tarde el lunes antes de la junta.

FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager
SUBJECT: Proclamation — "World Polio Day" — October 24, 2023 Present a Proclamation recognizing October 24, 2023, as World Polio Day in the City of Santa Maria.

BACKGROUND:

In 1985 Rotary International (Rotary) initiated the PolioPlus program aimed at eradicating polio in the world. At that time poliovirus was present in 125 countries, paralyzing an estimated 1,000 children per day. In 1988, the Global Polio Eradication Initiative joined forces with Rotary.

Rotary International and the Rotary Clubs of the Santa Maria Valley and Nipomo have been engaged in a 35 -year campaign to eradicate Polio worldwide. When Rotary began its mission to eradicate polio more than 350,000 children in 125 countries were stricken with polio every year, and nearly 1,000 people were affected by the crippling disease every day. Since then, polio cases have been reduced by over 99 percent to only 30 cases in 2022. Public Awareness, advocacy, and funding remain crucial to Rotary and its partners, the World Health Organization, the U.S. Centers for Disease Control and Prevention, and UNICEF.

Attachment: Proclamation — World Polio Day 2023

City of Santa Maria
Santa Maria, California
Proclamation
Santa Maria
kraal
All -America City
1 WHEREAS, Rotary International (Rotary) and the Rotary Clubs of the Santa Maria Valley & Nipomo have been engaged in a 35 -year campaign to eradicate Polio worldwide; and WHEREAS, Rotary brings 118 years of history to this initiative. Its members are business, professional, and community leaders who provide humanitarian service, encourage high ethical standards, and help build goodwill and peace in the world. Over thirty-five thousand Rotary clubs located in more than 200 countries and geographical areas build coalitions and initiate service projects to address today's challenges, including illiteracy, disease, hunger, poverty, lack of clean water, and environmental concerns; and WHEREAS, when Rotary began its mission to eradicate polio more than 350,000 children in 125 countries were stricken with polio every year, and nearly 1,000 people were affected by the crippling disease every day. Since then, polio cases have been reduced by over 99 percent to only 30 cases in 2022; and
WHEREAS, today only two countries — Afghanistan and Pakistan - remain polio - endemic. Due to the efforts of Rotary and its partners, the world is on the threshold of ending polio forever, making it only the second disease after smallpox to be eradicated; and WHEREAS, public awareness, advocacy and funding remain crucial to Rotary and its partners, the World Health Organization, the U.S. Centers for Disease Control and Prevention, and UNICEF.

NOW, THEREFORE, I, ALICE M. PATINO, Mayor of the City of Santa Maria hereby proclaim October 24, 2023, as:
"World Polio Day"
in the City of Santa Maria.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 17`'' day of October, 2023.

Alice M. Patino, Mayor

FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO:

FROM:

SUBJECT:

City Council
City Manager
Prepared by: Interim Recreation and Parks Director Angela Oslund Proclamation — Recognizing October as Arts and Humanities Month Present a Proclamation recognizing October as Arts and Humanities Month in Santa Maria
BACKGROUND:

Arts and Humanities Month celebrated annually in October, is a significant occasion for the City of Santa Maria. It recognizes the profound impact of arts and humanities on our community's cultural fabric, educational opportunities, and economic prosperity. Our City boasts a rich tapestry of artists, musicians, writers, historians, and cultural organizations that contribute to its vibrant artistic and intellectual landscape. This month -long celebration aims to foster a greater appreciation for the arts and humanities, encouraging residents to engage in creative expression and cultural exploration while highlighting the vital role these disciplines play in enhancing our quality of life and supporting our local economy.

DISCUSSION:

Arts and Humanities Month is an annual nationwide commemoration dedicated to shining a spotlight on the diverse realms of arts and humanities, integral in shaping vibrant and unified communities. Research demonstrates that individuals engaged in, educated about, or partaking in artistic and humanistic endeavors contribute significantly to the social fabric, fostering resilient, self-sustaining, and culturally enriched societies.

Furthermore, empirical evidence affirms that children develop essential critical -thinking abilities and enhanced concentration when exposed to a robust arts foundation.

Attachment: Proclamation

City of Santa Maria
Santa Maria, California
Proclamation
Santa Maria
kreal
All -America City
11111!
WHEREAS, the City of Santa Maria recognizes the invaluable contributions of the arts and humanities to our community's cultural and economic vitality; and WHEREAS, the arts and humanities provide essential opportunities for creativity, self- expression, and personal growth, enriching the lives of our residents; and WHEREAS, Santa Maria is home to a vibrant and diverse arts and humanities community, including visual artists, musicians, writers, actors, historians, and cultural organizations, who continuously inspire and educate us; and
WHEREAS, the arts and humanities contribute significantly to our local economy by attracting visitors, stimulating tourism, and supporting local businesses; and WHEREAS, the City of Santa Maria is committed to fostering an environment that celebrates and supports the arts and humanities, recognizing their power to bring people together and foster a sense of community; and
WHEREAS, the Recreation and Parks Department of the City of Santa Maria has shown unwavering commitment to promoting and nurturing the arts within our community, serving as a lead agency in numerous partnerships with local arts organizations to advance the cultural enrichment of our city.

WHEREAS, October has been nationally recognized as Arts and Humanities Month, a time to celebrate and promote the rich cultural heritage and creative achievements of our community;
NOW, THEREFORE I, ALICE M PATINO, Mayor of the City of Santa Maria hereby recognize October 1 through October 31, 2023, as
"ARTS AND HUMANITIES MONTH"
in the City of Santa Maria, and call upon community members to participate, celebrate, and promote the arts and culture in the City of Santa Maria.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 17th day of October 2023.

Alice M Patine), Mayor

FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Library Director— Dawn Jackson
SUBJECT: Proclamation — 100 -Year Anniversary of the Kiwanis Club of Santa Maria — October 2023
Present a Proclamation to recognize the 100 -Year Anniversary of the Kiwanis Club of Santa Maria.

BACKGROUND:

The Kiwanis Club of Santa Maria (Kiwanis Club) was formed on May 18, 1923, as a service organization committed to the development and advancement of youth in the community. Through decades of hard work, dedication, and a commitment to see club goals come to fruition, club members are now celebrating the 100 -year anniversary of the Santa Maria chapter.

Since its inception, the Kiwanis Club has hosted benefit shows, dances, golf tournaments, pancake breakfasts, and supported numerous rodeo queen candidates, to raise funds for several projects, such as the Santa Maria Municipal Plunge pool and renovations to a building at Buena Vista Park for seniors. Most recently, the Kiwanis Club partnered with several community organizations to support the first all-inclusive playground in the community.

DISCUSSION:

Over the past 100 years, the Kiwanis Club sponsored hundreds of youth activity programs, ranging from sports leagues, scouting, literacy and education, and community service projects. Additionally, the Kiwanis Club works with local organizations, comprised of individuals of a variety of ages and abilities, to inspire and enrich the lives of today's youth. The 100 -year anniversary of the Kiwanis Club would not have been possible without an active and robust team of club members, who serve as mentors and role models. Recognizing the Kiwanis Club's 100 -year anniversary will promote greater awareness of its services and the value the club provides to the community.

Attachment: Proclamation

M)
City of Santa Maria
Santa Maria, California
Proclamation
Santa Maria
klieril
All -America City
1 I I I If
WHEREAS, the Kiwanis Club of Santa Maria was formed on May 18, 1923, to provide services for the development and advancement of the community; and WHEREAS, the Kiwanis Club of Santa Maria celebrates a long history of service, particularly to youth, in our community; and
WHEREAS, the Kiwanis Club of Santa Maria has hosted benefit shows, dances, golf tournaments, and pancake breakfasts to raise funds for several major projects, such as the Santa Maria Municipal Plunge pool, renovations to a building at Buena Vista Park, and the first all-inclusive playground in the community; and
WHEREAS, the members of the Kiwanis Club of Santa Maria continue to benefit the community by sponsoring hundreds of youth activity programs, ranging from rodeo queen candidates, sports leagues, scouting, literacy and education, and community service projects, to inspire and enrich the lives of today's youth; and
WHEREAS, the 100 -year anniversary of the Kiwanis Club of Santa Maria would not have been possible without an active and robust team of club members, who serve as mentors and role models; and
WHEREAS, the Kiwanis Club of Santa Maria's 100 -Year Anniversary will promote greater awareness of Kiwanis services and the value the club provides to the community.

NOW, THEREFORE, I, ALICE M PATINO, Mayor of the City of Santa Maria, hereby recognize the:
"100 -YEAR ANNIVERSARY OF THE
KIWANIS CLUB OF SANTA MARIA"
in the City of Santa Maria, and share our gratitude for the positive contribution the Kiwanis Club of Santa Maria has made to our City.

IN WITNESS WHEREOF, I have here unto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 17th day of October 2023.

Alice M. Patino, Mayor

FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager
Prepared by: Public Information Manager Mark van de Kamp SUBJECT: Businesses of the Month — October 2023
The Mayor and City Council will present certificates to the featured Businesses of the Month for October 2023 — Akeso Occupational Health and the Santa Maria Valley YMCA.

BACKGROUND:

The City of Santa Maria and the Santa Maria Valley Chamber of Commerce have partnered to highlight different businesses in the City through a Business of the Month Program. For the next year, this program gives recognition to local businesses for their longevity and/or for providing significant healthcare contributions. Not only does this give valuable exposure to these local businesses, but it also reminds the community of the unique, diverse, and long- standing businesses they are fortunate to have in Santa Maria.

This month's long-standing business is the Santa Maria Valley YMCA (Y), located at 3400 Skyway Drive. The Y provides numerous healthy lifestyle programs and services to more than 10,000 community members and to all three public school districts. Its first location opened in 1962 as a small Y's men's club at 507 South McClelland Street (now the Knights of Columbus Hall). In 1977, the County made 14 acres on Skyway Drive available for a full family facility. The building was dedicated in 1984, with an expansion added 10 years later. The Y employs 200; raises $300,000 annually to provide scholarships; and its afterschool childcare will more than double in the fall of 2023. The Y collaborates with many local organizations.

Representing the Y tonight is Shannon Seifert, Chief Executive Officer.

This month's business being recognized for its healthcare contributions to the community is Akeso Occupational Health (Akeso), formerly known as Industrial Medical Group of the Santa Maria Valley. Its focus is on agriculture, aerospace, municipalities, small businesses, individuals, and the oil and gas industry. Training is a vital part of our mission, providing externships for medical assistants, phlebotomists, physician assistants, and nurse practitioners. In addition to the evaluation and management of health conditions related to employment, Akeso provides educational presentations on pesticide safety, workers' compensation, First Aid, HAZMAT screening, and substance abuse. Representing the organization tonight are Adora Capiral (Operations Manager), Gabriela Aguirre (Clinic Manager), Dr. Byer (Vice President of Operations), and Dr. Christensen (Medical Director).

CITY COUNCIL MEETING MINUTES CITY OF SANTA MARIA, CALIFORNIA October 3, 2023, 5:00 p.m.

City Hall Council Chambers
110 East Cook Street
Santa Maria
Roll Call: Mayor Alice Patino, Councilmember Maribel Aguilera-Hernandez, Councilmember Mike Cordero, Councilmember Carlos Escobedo Members Absent:

Staff Present:

Councilmember Gloria Soto
Interim City Manager Alex Posada, City Attorney Thomas Watson, Fire Chief Bradley Dandridge, Director of Public Works Brett Fulgoni, Director of Finance Mary Harvey, Interim Director of Finance Xenia Bradford, Interim Chief Human Resources Director Dawn Jackson, Chief Information Officer Jeffrey Marecic, Interim Director of Recreation & Parks Angela Oslund, Director of Community Development Chuen Wu, Chief of Police Marc Schneider, Director of Utilities Shad Springer, Administrative Assistant Brittany Short, Assistant City Clerk Alexandra Valadez

1. INVOCATION
Pastor Daniel Cassels gave the Invocation.

2. PLEDGE OF ALLEGIANCE
Councilmember Cordero led the Pledge of Allegiance.

3. CALL TO ORDER
Mayor Patino convened the meeting and called the meeting to order at 5:33 p.m.

4. PROCLAMATIONS

4.a Proclamation — "Orcutt 14U All -Stars Baseball Team" City Council presented a Proclamation recognizing the Orcutt 14U All -Stars baseball team for becoming the first baseball team for the Santa Maria Valley to win a Babe Ruth World Series age group title. Matt and Mason Majewski accepted the Proclamation.

4.b Proclamation — "Active Aging Week"
1 The City Council presented a Proclamation recognizing October 2 through October 9, 2023, as "Active Aging Week" in the City of Santa Maria. Members of the Santa Maria Valley Senior Citizens Club accepted the Proclamation.

4.c Proclamation — "Fire Prevention Week"
The City Council presented a Proclamation recognizing the week of October 8 through 14, 2023, as "Fire Prevention Week" in the City of Santa Maria. Fire Marshal Jim Austin accepted the Proclamation.

4.d Proclamation — "Code Enforcement Officer Appreciation Week" The City Council presented a Proclamation to recognize October 9 through 13, 2023, as "Code Enforcement Officer Appreciation Week" to recognize and celebrate the role Code Enforcement Officers have in our communities. Members of the Code Enforcement Division accepted the Proclamation.

5. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
Gary Hall representing North Santa Barbara County Mobile Homeowners Team (NSBMHT) spoke about the concerns the Mobile Homeowners Team has regarding the pace of negotiations. Mr. Hall stated that the team looks forward to continuing discussions with the City team.

Wilma Kilpatrick spoke about the construction delays the affordable housing project on Battles Road has experienced. She shared that this delay has caused her to experience homelessness.

6. CONSENT CALENDAR
Consent Calendar Items 6.a.1 through 6.d.1 were approved as presented, including the adoption of Resolution Nos. 2023-129, 2023-130, and 2023-131. The recorded vote appears with each item below.

Moved by: Councilmember Escobedo
Seconded by: Councilmember Aguilera-Hernandez
Adopt the Consent Calendar as submitted.

For (4): Mayor Patino, Councilmember Aguilera-Hernandez, Councilmember Cordero, and Councilmember Escobedo
Absent (1): Councilmember Soto
Motion carried by a recorded vote (4 to 0)

6.a CITY MANAGER/CITY CLERK DEPARTMENT

6.a.1 Ordinances and Resolutions
Waive the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unless City Council indicates otherwise.
2 Motion carried unanimously

6.a.2 Approval of Minutes
Approve the Minutes of the regular City Council meeting of August 15, 2023.

Motion carried unanimously
Approve the Minutes of the special City Council meeting of September 6, 2023.

Motion carried unanimously
Approve the Minutes of the special City Council meeting of September 14, 2023.

Motion carried unanimously

6.a.3 CaIPERS Comprehensive Salary Schematic
Action: Adopted as Resolution No. 2023-129
Adopt a Resolution approving a comprehensive salary schematic for all full-time and part-time employees in accordance with CaIPERS guidelines.

Motion carried unanimously

6.a.4 Employment Agreement for Interim City Manager Services Action: Adopted as Resolution No. 2023-130
Adopt a Resolution approving an Employment Agreement for Interim City Manager Services.

Motion carried unanimously

6.b COMMUNITY DEVELOPMENT DEPARTMENT

6.b.1 Community Development Block Grant Final Consolidated Annual Performance and Evaluation Report for the 2022-2023 Fiscal Year
Receive and file information concerning the Final Consolidated Annual Performance and Evaluation Report for the 2022-2023 Fiscal Year.

Motion carried unanimously

6.c FINANCE DEPARTMENT

6.c.1 Payment of Warrants
3 Order ratified subject to having been certified as being in conformity with the budget and having been approved for payment by the Director of Finance.

Motion carried unanimously

6.c.2 Payment of Payroll
Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance, and having been approved for payment by the Director of Finance.

Motion carried unanimously

6.d POLICE DEPARTMENT

6.d.1 Donation of Horse Trailer from the Santa Maria Police Council Action: Adopted as Resolution No. 2023-131
Adopt a Resolution approving the donation of a horse trailer to the Santa Maria Police Department from the Santa Maria Police Council.

Motion carried unanimously

7. PUBLIC HEARING

7.a Alvin Newton Apartments Downtown Permit at the Southeast Corner of Main Street and Broadway Mayor Patino opened the public hearing at 6:23 p.m.

Glenn Morris representing Santa Maria Valley Chamber of Commerce, Mr. & Mrs. Paredes representing The Maya Restaurant, and Matt Chircop representing Fire Fighter Memorial Stakeholder group all spoke in favor of the approval of the Downtown Permit.

Mayor Patino closed the public hearing at 6:56 p.m.

Moved by: Councilmember Cordero
Seconded by: Councilmember Aguilera-Hernandez
Accept the recommendation of the Planning Commission and adopt a Resolution approving Downtown Permit (DT2022-0022) for Alvin Newton Apartments at the southeast corner of Main Street and Broadway.

For (3): Mayor Patino, Councilmember Aguilera-Hernandez, and Councilmember Cordero Noes (1): Councilmember Escobedo
Absent (1): Councilmember Soto
4 Motion carried by a recorded vote (3 to 1)

8. REGULAR BUSINESS

8.a Review and Prioritize Community Development Block Grant Capital Project Proposals The City Council reviewed the Capital project proposals for Fiscal Year 2024-25 Community Development Block Grant funding.

Public Input
There was no public comment on this item.

Councilmembers Aguilera-Hernandez, Escobedo, and Mayor Patino agreed that the Santa Maria Community Sports Complex is the priority. Priorities after Sports Complex would be the minor home repairs proposals (CommUnify and CAPSLO) and Fighting Back Santa Maria Valley.

Councilmember Cordero stated that his priorities lie with feeding and warming residents.

That the City Council review and prioritize the Capital project proposals for Fiscal Year 2024-25 Community Development Block Grant funding and provides the Block Grants Advisory Committee and participating applicants with direction as to the projects that should be given priority for the upcoming funding cycle.

Motion carried unanimously

9. REPORT BY CITY MANAGER
Interim City Manager Posada introduced Interim Director of Recreation and Parks Angela Oslund and Interim Finance Director Zenia Bradford. Mr. Posada announced that the Santa Maria Airshow is October 14th and 15th and the Kiwanis Club is celebrating its 19th year. Mr. Posada reported that the next City Council Meeting would be October 17th. Items on the agenda would include a Closed Session, a Proclamation for World Polio Day, an Award of Professional Services, Water and Sewer Rates 1st Reading, and a General Plan Update.

10. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB1234 REPORTS) Councilmember Cordero reported that he attended a meeting with Ross Realty regarding a project South of Foster Road, two Central Coast Water Authority meetings, two meetings with United Way to discuss the merging of Santa Barbara County and San Luis Obispo County entities, an SEIU Meeting, and a Water and Sewer Rates Public Workshop. He also mentioned that Assemblyman Greg Hart is holding Sidewalk Hours in front of City Hall on October 4th.

Councilmember Escobedo reported that he attended the Santa Maria Valley Chamber of Commerce Annual Gala.

Councilmember Aguilera-Hernandez reported that she attended the Ben Heighes Show, Annual League of California Cities Conference - Sacramento, and Mayor's Ball. 5 Mayor Patino reported that she attended the Santa Maria Japanese Community Center Check Presentation with Salud Carbajal, SBCAG Meeting, APCD Meeting, Measure A interviews - Oversight Committee, Orcutt Babe Ruth Celebration Event, Channel Counties Legislative Lunch Webinar, Santa Maria Day at CalPoly, Project Opiod Meeting, Japanese Community Center Groundbreaking, the Rick Blaemire, California Alliance of Local Electeds, September 11th Commemoration Ceremony, Voting Delegate Webinar, Santa Maria Police Department Badge Pinning, Recreation and Parks Commission Meeting, Fentanyl Town Hall Meeting, 3CE Annual Meeting, Vandenberg MOU Kickoff, Fiestas - Santa Maria El Grito, Santa Maria Valley PACC Steering Committee, Annual League of California Cities Conference - Sacramento, Libbon Elementary School Classroom Visit, Marian Regional Medical Center Foundation Board Meeting, SBCAG Board Meeting - Briefing on Highway 166 Black Road Project, and Mayor Teen Council.

11. ADJOURNMENT
There being no further business before the City Council, Mayor Patino declared the City Council meeting adjourned at 7:30 p.m. in remembrance of Senator Dianne Feinstein.

Alexandra Valadez, Assistant City Clerk
Alice M. Patino, Mayor
6 FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
SUBJECT: Appointment of Representatives for the Central Coast Community Energy Operations Board
Description:

The City Council will consider making appointments to the Central Coast Community Energy Operations Board consisting of Interim City Manager Alex Posada as a Representative, and Interim Assistant City Manager Chuen Wu as an Alternate Representative.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Appoint Interim City Manager Alex Posada as Representative, with Interim Assistant City Manager Chuen Wu as Alternate Representative, to the Central Coast Community Energy Operations Board.

BACKGROUND:

Central Coast Community Energy (3CE) is an outside board with City Council and staff representation on its Policy and Operations Boards, respectively. Mayor Patino is the current Representative on the Policy Board and Councilmember Cordero is the Alternate Representative. The previous City Manager and Assistant City Manager served as the Representative and Alternate Representative on the Operations Board. The replacement of representatives for the Operations Board is needed due to the recent departure of staff.

Fiscal Considerations
There are no fiscal impacts to the City for these appointments.

Impact to the Community
Santa Maria's power needs and best interests will be represented at 3CE.

FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager
Prepared by: Director of Finance Mary Harvey
SUBJECT: Appointment of Deputy City Treasurer
Description:

The City Council will consider accepting the appointment of Xenia Bradford as Deputy City Treasurer as of October 21, 2023.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Accept, by Minute Order, the appointment of Xenia Bradford as Deputy City Treasurer as of October 21, 2023, to act as City Treasurer when the City Treasurer Teressa Hall is unavailable. Furthermore, any previous Deputy City Treasurer appointments are to be revoked.

BACKGROUND:

According to the Municipal Code, Section 2-6.02, the City Treasurer shall appoint deputies for whose acts he/she shall be responsible. Such deputies shall hold office at the pleasure of the City Treasurer. The City Treasurer shall advise the City Council of the naming of the deputies, and the City Council shall take note of the same by Minute Order.

DISCUSSION:

Due to the upcoming retirement of the current Deputy City Treasurer Mary Harvey, and after evaluating potential replacements, City Treasurer Teressa Hall has chosen Xenia Bradford to replace the current appointee. With this appointment, any prior appointments are hereby revoked effective October 21, 2023.

The appointment of the position of Finance Director as Deputy City Treasurer has been previously reviewed with the City's outside auditing firm and they expressed no objection and therefore, does not need to be reviewed at this time. Should the City Treasurer be unable/unavailable to fulfill the duties under Municipal Code, Section 2-6.01, the Deputy City Treasurer shall perform said duties, which includes the payment of warrants and preparing a monthly treasurer's report.

Alternative(s)
If the City Council chooses not to accept the choice, the City Treasurer can re-evaluate and return to the City Council with a new appointment.

Fiscal Considerations
The appointment of a Deputy Treasurer has no fiscal impact.

Impact to the Community
There is no direct impact to the community.

Attachment A — City Treasurer Certificate
2 Santa Maria
bigrid
M -America City

CITY OF SANTA MARIA

DEPARTMENT OF FINANCE
Admin/Finance, Room 6, Ext. 2215
Utility Billing, Room 9, Ext. 2217/2218
Business License, Room 5, Ext. 2422
Purchasing, Room 6, Ext. 2215
206 EAST COOK STREET • SANTA MARIA, CALIFORNIA 93454-5136 • (805) 925-0951 • FAX (805) 925-2243

CERTIFICATE OF APPOINTMENT
I, Teressa Hall, being duly elected City Treasurer of the City of Santa Maria, State of California, do hereby certify that XENIA BRADFORD is hereby appointed as Deputy City Treasurer of the City of Santa Maria, for all purposes legally required of the City Treasurer to be effective on October 21, 2023.
2023.

In witness whereof, I have hereunto affixed my signature this 5th day of October City Treasurer
QY.,er
Attachment A

FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO:

City Council
FROM: Interim City Manager
Prepared by: Director of Public Works Brett Fulgoni
SUBJECT: Award Two Professional Services Agreements for On -Call Construction Management And Inspection Services
Description:

The City Council will consider approving the award of On -Call Construction Management to Filippin Engineering, Inc. and Wallace Group. The City has active and pending projects that require technical assistance from firms able to provide Construction Management and Inspection Services. On -Call Construction Management and Inspection Services would also be made available to other departments for funded projects.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATIONS:

1. Adopt a Resolution awarding a Professional Services Agreement in the amount of $300,000 for On -Call Construction Management and Inspection Services to Filippin Engineering, Inc.; and

2. Adopt a Resolution awarding a Professional Services Agreement in the amount of $300,000 for On -Call Construction Management and Inspection Services to Wallace Group.

BACKGROUND:

The City owns, operates, and maintains municipal infrastructure, structures, and facilities throughout the City. The City has active and pending projects that require technical assistance from firms able to provide Construction Management and Inspection Services.

While the City employs Civil Engineers on staff, these buildings and facilities require professional engineering beyond the capabilities of the existing staff and fall outside the normal workloads; therefore, necessitating the hiring of outside consultants for these services. Having on -call consultants who can provide these services will allow the City to deliver projects in a timely manner.

DISCUSSION:

On August 24, 2023, a Request for Proposals was issued and advertised through the City's bidding platform, PlanetBids. In addition, notification emails were sent to firms who expressed interest in providing Construction Management Services to the City.

Selection of the best -qualified firms was made in accordance with the City's Purchasing Guidelines. Two proposals were received on September 15, 2023. A selection committee, consisting of Engineering Division staff, independently evaluated and ranked the proposals. After deliberations, the top two ranked firms chosen are as follows:

Firm and Location
Filippin Engineering, Inc., San Luis Obispo, CA
Wallace Group, San Luis Obispo, CA
The proposed Professional Services Agreements would be managed by the Engineering Division. On -Call Construction Management and Inspection Services would also be made available to other Departments for funded projects.

Individual project task orders will be issued based on the firm's expertise, workload capacity, services to be performed, schedule requirements, and hourly rates submitted in their proposal. All task orders will be issued based on an agreed -upon, written scope of work, implementation schedule, and maximum fee arrangement negotiated on a project - by -project basis.

Alternative(s)
City Council could decide to not award these Construction Management and Inspection Services Agreements and direct staff to issue Requests for Proposals for each project individually. However, this alternative is not recommended as there is a significant backlog of funded projects for which outside Construction Management and Inspection Services are required to augment City staff. Further, having pre -approved, on -call, as - needed firms readily available will allow for more efficient and timely delivery of projects as multiple projects can be designed concurrently.

Environmental Review
The City of Santa Maria determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

Fiscal Considerations
Fees for On -Call Construction Management and Inspection Services will be based on a project -by -project basis and directly charged to individual project budgets. Each project 2 is separately approved and budgeted by the City Council. The City is under no obligation to expend any funds under these Professional Services Agreements.

Impact to the Community
The community will benefit from the City being able to supplement City staff when needed to deliver projects to the community in a timely manner resulting in a higher quality of life for residents and visitors to the community.

ATTACHMENTS
A. Professional Services Agreement to Filippin Engineering, Inc.

B. Professional Services Agreement to Wallace Group
3 AGREEMENT FOR PROFESSIONAL SERVICES
On -Call Construction Management and Inspection Professional Services This Agreement is made on October 17, 2023, by and between Filippin Engineering, Inc., a California Corporation ("Consultant"), and the City of Santa Maria, a California Municipal Corporation and charter city ("City"), in Santa Maria, California, based on the following recitals:

WHEREAS, City has determined it is in the public interest to proceed with the work hereinafter described as "Project"; and
WHEREAS, City has determined the Project involves the performance of engineering services of a temporary nature; and
WHEREAS, City does not have available employees to perform the services for the Project; and
WHEREAS, City has requested the Consultant to provide manpower to complete the Project; and
WHEREAS, Consultant is registered or licensed in California to perform construction services for the Project.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.01. Term and Termination. The term of this contract is two (2) year, beginning on the date first written above. This contract may be extended by mutual consent of the parties. This contract may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state, or federal law. Termination is effective 14 days after deposit of notice as specified in this Agreement.

Services to be Performed. Consultant shall determine the method, details, and means of providing On -Call Construction Management and Inspection services. More specifically, Consultant agrees to perform the specific services listed in Exhibit "A."

2.02. City's Duties. City's duties under this Agreement are to cooperate with Consultant in the performance of the contract and timely pay invoices.

2.03. Payment. Payment terms under this Agreement are listed in Exhibit "B."

2.04. Insurance. Consultant shall provide insurance as listed in Exhibit "C."

ATTACHMENT A

2.05. Exhibits. Exhibits "A," "B," and "C" are attached and incorporated.

3. Consultant's Obligations.

3.01. Minimum Amount of Service. Consultant shall devote sufficient time to perform services under this agreement efficiently and effectively. Consultant may represent, perform services for, and be employed by additional individuals or entities, in Consultant's sole discretion, as long as the performance of these extra -contractual services does not interfere with or present a conflict with City's business.

3.02. Tools and Equipment. Except as otherwise stated in this Agreement, Consultant will supply all tools and equipment necessary to perform this Agreement.

Status. Consultant (including its employees) is an independent Consultant.

No employer/employee relationship exists between Consultant and the City.

Consultant's assigned personnel shall not be entitled to any benefits payable to employees of the City. The City is not required to make any deductions or withholdings from the compensation payable to Consultant under this agreement. Consultant (as a business entity, including its employees) is a "design professional" as defined by California Civil Code section 2782.8(c)(3).

3.03. Indemnification. To the fullest extent permitted by law, the Consultant shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys' fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of the Consultant including its agents, subcontractors and employees. The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this Section are not limited by the provisions of the Section relating to insurance.

3.05. Use of Subcontractors. CONSULTANT may subcontract with third party providers that were listed in CONSULTANT's Response to Request for Proposals and whose rate sheets have been included in this Agreement.

Subcontractors shall be billed at the rates listed in Exhibit B. CONSULTANT is fully responsible for the actions and omissions of any subcontractor.

CONSULTANT must ensure subcontractor adherence to the same quality standards and assurances required of CONTACTOR. CONTACTOR shall ensure that this Agreement is incorporated by reference into any Agreement 2 Atty. Rev. 2021

with a subcontractor and that subcontractor complies with the insurance requirements of EXHIBIT C.

4. Miscellaneous

4.01. Notices. All communication relating to the day-to-day activities of this Agreement shall be exchanged between a designated representative of the CITY and a representative of CONSULTANT, listed below. All notices shall be addressed as follows unless a written change is filed with the City:

To City:

Thomas M. Korman, P.E., P.L.S.

Principal Civil Engineer
110 East Cook Street
Santa Maria, CA 93454
To Consultant:

Filippin Engineering,
Inc.

Attn.: Kelly Wheeler
Vice President
994 Mill Street, Suite 230
San Luis Obispo, CA 93401
If the designated Representative or address of either party changes during the term of this agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this agreement shall be effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.02. Compliance With Laws, etc. Consultant shall comply with all laws, including but not limited to the rules and policies of the City, in performing this agreement.

4.03. Integration. This agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this agreement must be in writing and signed by the appropriate representatives of the parties.

4.04. Interpretation. This agreement shall be interpreted in accordance with the laws of the State of California.

4.05. Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Northern Santa Barbara, State of California.

4.06. Warranty of authority. Each person signing this agreement on behalf of a party warrants that he or she has authority to do so.

4.07. No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.
3 Atty. Rev. 2021

4.08. Severability. The provisions of this agreement are severable. If any part of this agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

4.09. Submittals. In addition to any other submittals required by this agreement, Consultant shall submit copies of its current business license and current certificate of workers' compensation coverage to the City before beginning work on this project.

4.10. Prevailing Wage and DIR Registration. Prevailing Wage. If applicable, Consultant and all Subconsultants are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations (DIR) under Section 1720 et seq. of the California Labor Code. The Director's determination is on file and open to inspection at ,.vww.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. DIR Registration. Projects contemplated by this agreement may need to be registered with the DIR. Consultant is required to register with DIR. Consultant's DIR Registration number is . Subconsultant's
performing qualifying work are required to register with DIR. Consultant shall provide subconsultant's DIR Registration numbers when necessary.

IN WITNESS WHEREOF, this agreement is executed by the parties on the date first written above.

FILIPPIN ENGINEERING, INC., A CITY OF SANTA MARIA, a political California Corporation subdivision of the State of California By: GINO FILIPPIN By: ALEX POSADA
President Interim City Manager
ATTEST:

Alexandra Valadez
Assistant City Clerk
Atty. Rev. 2021

APPROVED AS TO FORM:

City Attorney
Risk Manager
4 Atty. Rev. 2021

EXHIBIT "A"

SERVICES TO BE PERFORMED
Basic services shall be to perform various professional services related to construction management tasks typical of a municipal agency. Tasks may include, but are not limited to the following:

Project Management Services

TYPICAL SERVICES REQUIRED
The required services and abilities required to successfully perform CMI services on the projects listed above include, but are not limited to:
• Constructability Review
• Oversight of construction surveying and material testing • Pre -job coordination and administration activities
• Understanding of standard details and specifications from:
o Caltrans
o Greenbook
o APWA
o AWWA
o City of Santa Maria
o County of Santa Barbara
• Experience in documentation of activities through Daily Inspection Logs • Construction Safety Orders
• Best Management Practices
• Inspection:
o Traffic Control
o Storm Water Prevention Measures
o General Street Construction
o Underground Utility Construction
o Traffic Signal Installation
o Landscaping and Irrigation Installation
o Street Striping
• Ability to work with utilities and public agencies in and adjacent to the City of Santa Maria • Understanding of environmental regulations relevant to construction activities.

Atty. Rev. 2021

EXHIBIT "B"

PAYMENT
I. Progress Authorization
This contract is subject to the requirements of Page G-9 of the Purchasing Guidelines for the City of Santa Maria.

Individual task orders will be created under this Master Agreement for the completion of each task and billed according to the attached rate sheet.

During the duration of this Master Agreement the City will identify individual task, and upon agreed scope of work, schedule, and cost, a Notice to Proceed and Purchase Ordered will be issued for each task not to exceed $75,000 per task as indicated in Section 1.1B.

The aggregate not -to -exceed fee for all tasks provided during the initial two-year term of the Agreement shall be $500,000.00.

II. Invoice procedure.

A. Payment shall be at the conclusion of the Project based on the billable charges.

B. The Consultant shall present the bill for charges by the second day of the month.

C. The Consultant's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.

III. Maximum billable amounts
Under no circumstance shall the total of all payments to the Consultant exceed ninety percent (90%) of the maximum not -to -exceed cost, prior to acceptance by the City of all items to be completed as noted within Exhibit "A".

Atty. Rev. 2021

FE
IIIIPPt. fMfl

EXHIBIT A
FILIPPIN ENGINEERING, INC.

BILLING RATES EFFECTIVE JULY 1, 2022 to JUNE 30, 2023
Engineering
Engineering Technician $ 120
Senior Engineering Technician $ 130
Junior Engineer
Assistant Engineer
Associate Engineer
Senior Engineer
Principal Engineer
General
Technical/Clerical Support
Office Engineer
Senior Program Manager
S 160
5 180
$ 190
S 200
5 215
5 106
S 120
$ 200
Construction Management
Assistant Construction Manager
Associate Construction Manager
Senior Construction Manager
Principal Construction Manager
Senior Construction Inspector (PW)
Chief Inspector/Owner's Rep (PW)
(PW) Prevailing Wage
Sub -Consultant
Reimbursable Expenses
Outside Consultant
Note 1: Reimbursable expenses include postage, shipping, outside plot and copy reproduction costs. $ 170.00
$ 175.00
$ 200.00
S 210.00
$ 160.00
$ 165.00
Cost + 10%
Cost + 10%
Cost + 10%
Note 2: On prevailing wage assignments, overtime rates for construction inspection = 1.3 X regular rate. Double time rates = 1.5 X regular rates. Overtime will not be performed unless authorized in writing by the client. Overtime is incurred as defined on the prevailing wage determination for construction inspector.

Note 3: Billing Rates subject to change for multiple year contracts in conjunction with labor increases. which will be calculated at an increase equal in a proportion equal to the CA DIR % increase issued yearly.

FE
Atty. Rev. 2021
FILIPPIN ENGINEERING, INC. • 994 MILL ST. SUITE 230, SAN LUIS OBISPO, CA 93401

EXHIBIT "C"

INSURANCE

INSURANCE REQUIREMENTS
Provider shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Provider, his/her agents, representatives, or employees. If the Provider maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Provider.

A. Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Provider has no owned autos, covering hired (Code 8) and non -owned autos (Code 9).

3. Workers' Compensation insurance as required by the State of Califomia and Employer's Liability Insurance.

4. Errors and Omissions liability insurance appropriate to the Provider's profession.

5. Cyber Liability Insurance, Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

B. Minimum Limits of Insurance
Provider shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability - $1,000,000 per accident for bodily injury and property damage.

Atty. Rev. 2021

3. Workers' Compensation: Statutory limits.

4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

6. Cyber Liability- $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. Self -insured Retentions
Self -insured retentions must be declared to and approved by the City. The City may require the Provider to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention.

D. Other Insurance Provisions
The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Provider including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to the Provider's insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 2010, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used).

2. For any claims related to this project, the Provider's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 0413 as respects the City, 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 Provider'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 canceled or reduced, except with notice stating the title of this contract to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return -receipt requested.

4. Provider hereby grants to City a waiver of any right to subrogation which any insurer of said Provider may acquire against the City by virtue of the payment of any loss under such insurance. Provider agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

5. If any of the required policies provide claims -made coverage:

Atty. Rev. 2021

a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. c. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Provider must purchase "extended reporting" coverage for a minimum of five (5) years after completion of work.

E. Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage
Provider shall fumish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Provider's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances
The 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.

Atty. Rev. 2021

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $300,000 FOR ON -CALL CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES TO FILIPPIN ENGINEERING, INC.

WHEREAS, the need exists for the City to obtain prompt professional Construction Management and Inspection Services to support municipal improvement projects; and WHEREAS, on August 24, 2023, the City issued a Request for Proposals (RFP) for On -Call Construction Management and Inspection Services for projects within the City and notified firms that specialize in this work, including those firms who had expressed interest, as well as those who had previously completed work for the City; and WHEREAS, on September 15, 2023, the City received two proposals from firms that perform this work; and,
WHEREAS, staff formed a selection committee to independently review and score each firm's proposal based on specific criteria in the RFP; and, WHEREAS, following deliberations, the selection committee determined that Filippin Engineering, Inc. satisfied the requirements of the RFP and was deemed a qualified firm to provide the needed On -Call Construction Management and Inspection Services; and, WHEREAS, the firms will provide services on an on -call, as -needed, project -specific basis as defined by the City, and all task orders will have a defined scope, schedule, and fee arrangement that will be negotiated based on the hourly rate schedule included in the agreement; and,
WHEREAS, the City of Santa Maria determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. The Professional Services Agreement for On -Call Construction Management and Inspection Services is awarded to Filippin Engineering, Inc., for a term of two years, with an annual fee not to exceed $300,000; and

2. That the City Manager, or designee, is authorized to execute the Professional Services Agreement upon receipt of the information required by the Request for Proposals.

3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 17th day of October 2023.

Mayor
ATTEST:

Assistant City Clerk
APPROVED AS TO FORM:

City Attorney
APPROVED AS TO CONTENT:

Department Director
Interim City Manager

AGREEMENT FOR PROFESSIONAL SERVICES
On -Call Construction Management and Inspection Professional Services This Agreement is made on October 17, 2023, by and between The Wallace Group, a California Corporation ("Consultant"), and the City of Santa Maria, a California Municipal Corporation and charter city ("City"), in Santa Maria, California, based on the following recitals:

WHEREAS, City has determined it is in the public interest to proceed with the work hereinafter described as "Project"; and
WHEREAS, City has determined the Project involves the performance of engineering services of a temporary nature; and
WHEREAS, City does not have available employees to perform the services for the Project; and
WHEREAS, City has requested the Consultant to provide manpower to complete the Project; and
WHEREAS, Consultant is registered or licensed in California to perform construction services for the Project.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.01. Term and Termination. The term of this contract is two (2) year, beginning on the date first written above. This contract may be extended by mutual consent of the parties. This contract may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state, or federal law. Termination is effective 14 days after deposit of notice as specified in this Agreement.

Services to be Performed. Consultant shall determine the method, details, and means of providing On -Call Civil Construction Management and Inspection services. More specifically, Consultant agrees to perform the specific services listed in Exhibit "A."

2.02. City's Duties. City's duties under this Agreement are to cooperate with Consultant in the performance of the contract and timely pay invoices.

2.03. Payment. Payment terms under this Agreement are listed in Exhibit "B."

2.04. Insurance. Consultant shall provide insurance as listed in Exhibit "C."

ATTACHMENT B

2.05. Exhibits. Exhibits "A," "B," and "C" are attached and incorporated.

3. Consultant's Obligations.

3.01. Minimum Amount of Service. Consultant shall devote sufficient time to perform services under this agreement efficiently and effectively. Consultant may represent, perform services for, and be employed by additional individuals or entities, in Consultant's sole discretion, as long as the performance of these extra -contractual services does not interfere with or present a conflict with City's business.

3.02. Tools and Equipment. Except as otherwise stated in this Agreement, Consultant will supply all tools and equipment necessary to perform this Agreement.

Status. Consultant (including its employees) is an independent Consultant.

No employer/employee relationship exists between Consultant and the City.

Consultant's assigned personnel shall not be entitled to any benefits payable to employees of the City. The City is not required to make any deductions or withholdings from the compensation payable to Consultant under this agreement. Consultant (as a business entity, including its employees) is a "design professional" as defined by California Civil Code section 2782.8(c)(3).

3.03. Indemnification. To the fullest extent permitted by law, the Consultant shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys' fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of the Consultant including its agents, subcontractors and employees. The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this Section are not limited by the provisions of the Section relating to insurance.

3.05. Use of Subcontractors. CONSULTANT may subcontract with third party providers that were listed in CONSULTANT's Response to Request for Proposals and whose rate sheets have been included in this Agreement.

Subcontractors shall be billed at the rates listed in Exhibit B. CONSULTANT is fully responsible for the actions and omissions of any subcontractor.

CONSULTANT must ensure subcontractor adherence to the same quality standards and assurances required of CONTACTOR. CONTACTOR shall ensure that this Agreement is incorporated by reference into any Agreement 2 Atty. Rev. 2021

with a subcontractor and that subcontractor complies with the insurance requirements of EXHIBIT C.

4. Miscellaneous

4.01. Notices. All communication relating to the day-to-day activities of this Agreement shall be exchanged between a designated representative of the CITY and a representative of CONSULTANT, listed below. All notices shall be addressed as follows unless a written change is filed with the City:

To City:

Thomas M. Korman, P.E., P.L.S.

Principal Civil Engineer
110 East Cook Street
Santa Maria, CA 93454
To Consultant:

Wallace Group
Attn.:Jorge Aguilar
Principal
612 Clarion Court
San Luis Obispo, CA 93401
If the designated Representative or address of either party changes during the term of this agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this agreement shall be effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.02. Compliance With Laws, etc. Consultant shall comply with all laws, including but not limited to the rules and policies of the City, in performing this agreement.

4.03. Integration. This agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this agreement must be in writing and signed by the appropriate representatives of the parties.

4.04. Interpretation. This agreement shall be interpreted in accordance with the laws of the State of California.

4.05. Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Northern Santa Barbara, State of California.

4.06. Warranty of authority. Each person signing this agreement on behalf of a party warrants that he or she has authority to do so.

4.07. No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.
3 Atty. Rev. 2021

4.08. Severability. The provisions of this agreement are severable. If any part of this agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

4.09. Submittals. In addition to any other submittals required by this agreement, Consultant shall submit copies of its current business license and current certificate of workers' compensation coverage to the City before beginning work on this project.

4.10. Prevailing Wage and DIR Registration. Prevailing Wage. If applicable, Consultant and all Subconsultants are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations (DIR) under Section 1720 et seq. of the California Labor Code. The Director's determination is on file and open to inspection at ,.vww.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. DIR Registration. Projects contemplated by this agreement may need to be registered with the DIR. Consultant is required to register with DIR. Consultant's DIR Registration number is . Subconsultant's
performing qualifying work are required to register with DIR. Consultant shall provide subconsultant's DIR Registration numbers when necessary.

IN WITNESS WHEREOF, this agreement is executed by the parties on the date first written above.

WALLACE GROUP, A California CITY OF SANTA MARIA, a political Corporation subdivision of the State of California
By: JORGE AGUILAR By: ALEX POSADA
Principal Interim City Manager
ATTEST:

Alexandra Valadez
Assistant City Clerk
Atty. Rev. 2021

APPROVED AS TO FORM:

City Attorney
Risk Manager
4 Atty. Rev. 2021

EXHIBIT "A"

SERVICES TO BE PERFORMED
Basic services shall be to perform various professional services related to construction management tasks typical of a municipal agency. Tasks may include, but are not limited to the following:

Project Management Services

TYPICAL SERVICES REQUIRED
The required services and abilities required to successfully perform CMI services on the projects listed above include, but are not limited to:
• Constructability Review
• Oversight of construction surveying and material testing • Pre -job coordination and administration activities
• Understanding of standard details and specifications from:
o Caltrans
o Greenbook
o APWA
o AWWA
o City of Santa Maria
o County of Santa Barbara
• Experience in documentation of activities through Daily Inspection Logs • Construction Safety Orders
• Best Management Practices
• Inspection:
o Traffic Control
o Storm Water Prevention Measures
o General Street Construction
o Underground Utility Construction
o Traffic Signal Installation
o Landscaping and Irrigation Installation
o Street Striping
• Ability to work with utilities and public agencies in and adjacent to the City of Santa Maria • Understanding of environmental regulations relevant to construction activities.

Atty. Rev. 2021

EXHIBIT "B"

PAYMENT
I. Progress Authorization
This contract is subject to the requirements of Page G-9 of the Purchasing Guidelines for the City of Santa Maria.

Individual task orders will be created under this Master Agreement for the completion of each task and billed according to the attached rate sheet.

During the duration of this Master Agreement the City will identify individual task, and upon agreed scope of work, schedule, and cost, a Notice to Proceed and Purchase Ordered will be issued for each task not to exceed $75,000 per task as indicated in Section 1.1B.

The aggregate not -to -exceed fee for all tasks provided during the initial two-year term of the Agreement shall be $500,000.00.

II. Invoice procedure.

A. Payment shall be at the conclusion of the Project based on the billable charges.

B. The Consultant shall present the bill for charges by the second day of the month.

C. The Consultant's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.

III. Maximum billable amounts
Under no circumstance shall the total of all payments to the Consultant exceed ninety percent (90%) of the maximum not -to -exceed cost, prior to acceptance by the City of all items to be completed as noted within Exhibit "A".

Atty. Rev. 2021

Exhibit A
Standard Billing Rates
Engineering, Design Et Support Services:

Assistant Designer/Technician $110
Designer/Technician I - IV $115/$125/$135/$145
Senior Designer/Technician I - III $158/$165/$172
GIS Technical Specialist $150
Senior GIS Technical Specialist $160
Associate Engineer I - III $130/$$140/$150
Engineer I - IV $160/$165/$170/$175
Senior Engineer I - III $185/$190/$195
Director $200
Principal Engineer/Consulting Engineer $240
Principal $260
IIIIgli
,—Mil
WALLACE GROUP.

Surveying Services: Prevailing Wage*
Party Chief $175 $225
Instrument Person $115 $145
Associate Survey Technician $110
Survey Technician I - IV $130/$135/$145/$150
Land Surveyor I - III $155/$165/$175
Senior Land Surveyor I - III $180/$185/$190
Director $200
Principal Surveyor $240
Principal $260
Planning Services:

Associate Planner I - II $105/$115
Planner I - IV $135/$145/$155/$165
Senior Planner I - III $170/$175/$180
Director $190
Principal Planner $200
Principal $260
Landscape Architecture Services:

Associate Landscape Designer I - II $100/$110
Designer I - IV $115/$120/$125/$130
Landscape Architect I - IV $135/$140/$145/$150
Senior Landscape Architect I - III $155/$160/$165
Director $180
Principal Landscape Architect $200
Principal $260
2022 Standard Billing Rates 1
Atty. Rev. 2021

Construction Management / Field Inspection Services: Prevailing Wage* Construction Inspector 1 - II $135/$150 $165/$172
Senior Construction Inspector $155 $180
Construction Office Tech 1-111 $110/$120/$130
Assistant Resident Engineer! - II $160/$165
Resident Engineer! - III $170/$175/$180
Senior Resident Engineer $190
Director $195
Principal Construction Manager $225
Principal $260
Public Works Administration Services:

Project Analyst I - IV $115/$125/$135/$145
Senior Project Analyst 1 - III $150/$155/$160
Senior Environmental Compliance Specialist I - III $165/$170/$175 Support Services:

Office Assistant $100
Project Assistant! - III $110/$115/$125
*Prevailing Wage:

State established prevailing wage rates will apply to some services based on state law, prevailing wage rates are subject to change over time and geographic location.

Right to Revisions:

Wallace Group reserves the right to revise our standard billing rates on an annual basis, personnel classifications may be added as necessary.

Additional Professional Services:

Fees for expert witness preparation, testimony, court appearances, or depositions will be billed at the rate of $400 an hour. If required to meet schedule requests, overtime on a project will be billed at 1.5 times the employee's typical hourly rate.

Direct Expenses:

Direct expenses will be invoiced to the client and a handling charge of 15% may be added.

Sample direct expenses include, but are not limited to the following:
• travel expenses
• delivery/copy services
• sub -consultant services • agency fees
• mileage (per IRS rates) • other direct expenses
Invoicing and Interest Charges:

Invoices are submitted monthly on an accrued cost basis. A finance charge of 1.5% per month may be assessed on all balances that are thirty days past due.

WALLACE GROUP 2
2022 Standard Billing Rates
Atty. Rev. 2021

EXHIBIT "C"

INSURANCE

INSURANCE REQUIREMENTS
Provider shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Provider, his/her agents, representatives, or employees. If the Provider maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Provider.

A. Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Provider has no owned autos, covering hired (Code 8) and non -owned autos (Code 9).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

4. Errors and Omissions liability insurance appropriate to the Provider's profession.

5. Cyber Liability Insurance, Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.

B. Minimum Limits of Insurance
Provider shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability - $1,000,000 per accident for bodily injury and property damage.

Atty. Rev. 2021

3. Workers' Compensation: Statutory limits.

4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

6. Cyber Liability- $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. Self -insured Retentions
Self -insured retentions must be declared to and approved by the City. The City may require the Provider to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention.

D. Other Insurance Provisions
The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Provider including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to the Provider's insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 2010, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used).

2. For any claims related to this project, the Provider's insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 0413 as respects the City, 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 Provider'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 canceled or reduced, except with notice stating the title of this contract to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return -receipt requested.

4. Provider hereby grants to City a waiver of any right to subrogation which any insurer of said Provider may acquire against the City by virtue of the payment of any loss under such insurance. Provider agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

5. If any of the required policies provide claims -made coverage:

Atty. Rev. 2021

a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. c. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Provider must purchase "extended reporting" coverage for a minimum of five (5) years after completion of work.

E. Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage
Provider shall fumish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Provider's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances
The 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.

Atty. Rev. 2021

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT IN THE AMOUNT OF $300,000 FOR ON -CALL CONSTRUCTION

MANAGEMENT AND INSPECTION SERVICES TO WALLACE GROUP
WHEREAS, the need exists for the City to obtain prompt professional Construction Management and Inspection Services to support municipal improvement projects; and WHEREAS, on August 24, 2023, the City issued a Request for Proposal (RFP) for On -Call Construction Management and Inspection Services for projects within the City and notified firms that specialize in this work, including those firms who had expressed interest, as well as those who had previously completed work for the City; and WHEREAS, on September 15, 2023, the City received two proposals from firms that perform this work; and,
WHEREAS, staff formed a selection committee to independently review and score each firm's proposal based on specific criteria in the RFP; and, WHEREAS, following deliberations, the selection committee determined that The Wallace Group satisfied the requirements of the RFP and was deemed a -qualified firm to provide the needed On -Call Construction Management and Inspection Services; and, WHEREAS, the firms will provide services on an on -call, as -needed, project -specific basis as defined by the City, and all task orders will have a defined scope, schedule, and fee arrangement that will be negotiated based on the hourly rate schedule included in the agreement; and,
WHEREAS, the City of Santa Maria determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CCR, Title 14, Chapter 3 (CEQA Guidelines), Article 20, Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. The Professional Services Agreement for On -Call Construction Management and Inspection Services is awarded to Wallace Group, for a term of two years, with an annual fee not to exceed $300,000; and

2. That the City Manager, or designee, is authorized to execute the Professional Services Agreement upon receipt of the information required by the Request for Proposal.

3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 17th day of October 2023.

Mayor
ATTEST:

Assistant City Clerk
APPROVED AS TO FORM:

City Attorney
APPROVED AS TO CONTENT:

Department Director
Interim City Manager

FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager
Prepared by: Director of Public Works Brett Fulgoni
SUBJECT: Acceptance of Public Waterline Easements along West Street Description:

The City Council will consider accepting public waterline easement dedications along West Street for the installation of an 8 -inch waterline for the multi -family residential property located at 310 West Street. Mr. Gautam purchased this property in 2016, and it requires tenant improvements, therefore acceptance of the easements for water purposes will allow the continued development of Mr. Gautam's property.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution accepting an easement for water purposes on West Street, along the southerly portion of APN 118-020-004 and along the southerly portion of APN 118-020- 006.

BACKGROUND:

West Street is a private street located just south of West Carmen Lane and adjacent to South Thornburg Street. An existing two-inch water main presently serves the residential homes on West Street. The waterline was installed prior to the annexation of West Street to the City of Santa Maria and is presently sub -standard. Property owner, Mr. Rupak Gautam, seeks to install a waterline to serve his property in accordance with City Standards and requests the consideration of the City Council for the acceptance of easements for water purposes.

DISCUSSION:

In 2016, Mr. Gautam purchased a partially completed multi -family residential property located at 310 West Street. The residential property requires tenant improvements in addition to City Standard Utilities to service the property. Public Works/Engineering City Standards require that an 8 -inch waterline shall serve all multi -family and commercial properties. To accommodate the construction of the waterline, easements from adjacent property owners and the acceptance of the easements by the City Council are required.

After a lengthy period of negotiations with adjacent property owners, the grant of easements for the installation of the waterline was recently acquired.

Acceptance of the easements for water purposes will allow the continued development of Mr. Gautam's property at 310 West Street.

Alternative(s)
City Council may elect to not accept the proposed easements for water purposes. The impact would result in Mr. Gautam's inability to develop his property.

Fiscal Considerations
There are no significant fiscal considerations anticipated with the proposed action. Mr.

Gautam has paid the required fees for staff time to review and record these documents.

Impact to the Community
The proposed grant of easement for water purposes shall allow the construction of City Standard waterline public improvements in an area where sub -standard improvements exist. This will result in improved water flows and future placement of fire protection improvements for the benefit of the residents along a portion of West Street. 2 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

MARIA, CALIFORNIA, ACCEPTING AN EASEMENT FOR WATER

PURPOSES ON WEST STREET, ALONG THE SOUTHERLY PORTION
OF APN 118-020-004 AND ALONG THE SOUTHERLY PORTION OF
APN 118-020-006.

WHEREAS, the City Council has the authority to accept offers of easement dedications for the establishment of public improvements; and WHEREAS, easements for the establishment of City Standard public improvements are necessary for utilities to serve the general public; and WHEREAS, the property owners of APN 118-020-004 (Exhibit A) and APN 118- 020-006 (Exhibit B) have approved the grant of easements for water purposes to the City and the applicant seeking acceptance of the easements has paid all applicable fees to process the recordation; and
WHEREAS, the City Surveyor has reviewed the legal description and exhibit of the easements and found them to be technically correct; and NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. That the easements for water purposes, as shown in Exhibits A and B, are approved, and accepted by the City of Santa Maria.

2. That from and after the date this Resolution is recorded with the Santa Barbara County Clerk -Recorder, the easements for water purposes as shown in Exhibit A and Exhibit B shall constitute a public utility easement; and

3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
///
///

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 17111 day of October 2023.

Mayor
ATTEST:

Assistant City Clerk
APPROVED AS TO FORM:

City Attorney
Exhibit A: Grant of Easement for Water Purposes, 315 West Street Exhibit B: Grant of Easement for Water Purposes, 317 West Street APPROVED AS TO CONTENT:

Department Director
Interim City Manager
2 EXHIBIT A
40' 0' 20' 40'
1 Inch = 40 ft

CARMEN LN
J
0 L.)
0 ��`3SITE

WEST ST
re
0 z
cc

DAL PORTO LN
BEITERAVIA RD 0

VICINITY MAP
S.

SCALE: NONE

10.00 1

LEGEND WEST STREET
10' WIDE PUBLIC WATERLINE EASEMENT
P

8.50'
2624 AIRPARK DRIVE
SANTA MARIA, CA 93455
PHONE: 805-934-5727
FAX: 805-934-3448
DATE: FEBRUARY 2020
WEST ST EASEMENTS.DWG
A 10' WATERLINE OVER A PORTION OF THAT PORTION
OF THE NORTH HALF OF SECTION 27, TOWNSHIP 10
NORTH, RANGE 34 WEST, SAN BERNARDINO MERIDIAN,

IN THE CITY OF SANTA MARIA, COUNTY OF SANTA

BARBARA, STATE OF CALIFORNIA, AS SHOWN ON THE

OFFICIAL PLAT ON FILE IN THE BUREAU OF LAND
MANAGEMENT. SHEET 1 OF 1

EXHIBIT B
20' 40'
1 inch m 40 ft.

BETTERIAVIA RD
4 -

VICINITY MAP
SCALE: NONE

10.00'

LEGEND WEST S TR E E T
10' WIDE PUBLIC WATERLINE EASEMENT
2624 AIRPARK DRIVE
SANTA MARIA, CA 93455
PHONE: 805-934-5727
FAX: 805-934-3448
DATE: FEBRUARY 2020
WEST ST EASEMENTS.DWG

8.50'
A 10' WATERLINE OVER A PORTION OF THAT PORTION
OF THE NORTH HALF OF SECTION 27, TOWNSHIP 10
NORTH, RANGE 34 WEST, SAN BERNARDINO MERIDIAN,

IN THE CITY OF SANTA MARIA, COUNTY OF SANTA

BARBARA, STATE OF CALIFORNIA, AS SHOWN ON THE

OFFICIAL PLAT ON FILE IN THE BUREAU OF LAND
MANAGEMENT. SHEET 1 OF 1

FOR THE COUNCIL MEETING OF OCTOBER 17, 2023

COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
Prepared by: Director of Utilities Shad S. Springer
SUBJECT: Public Hearing and Approval of Water and Sewer Rates Commencing each January 1 from 2024 through 2027
Description:

The City Council will conduct a public hearing and first reading to approve water and sewer rates commencing each January 1 from 2024 through 2027.

Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

1. Receive a Staff Presentation regarding water and sewer rates;

2. Conduct a Public Hearing;

3. Determine whether a majority protest exists; and

4. If no majority protest exists, introduce an ordinance for a first reading, and continue for a second reading and adoption at the next regular meeting of the City Council, approving water and sewer rates for the next four years, commencing each January 1 from 2024 through 2027.

SUMMARY:

The Utilities Department is recommending new water and sewer rates in order to account for increased operating and capital costs. Rates are proposed to change each January from 2024 through 2027. Water and sewer rates were last adjusted in January 2023.

Utility rate -making methodologies and legal requirements, including Proposition 218 ("Prop 218"), were followed in evaluating and proposing these rates. Under Prop 218, rate changes are subject to a written majority protest provision. A majority protest of ratepayers for this item consists of 9,958 protests.

BACKGROUND:

Legal Requirements. The City is required to conduct proceedings pursuant to Article XIII D, Section 6(a)1 of the California Constitution with respect to fees for water service, sewer service, refuse collection, and other property -related services. Article XIII D, Section 6(a) is a portion of Prop 218, which was adopted by the voters in 1996. Prop 218 requires that

the amount of the fee or charge to property owners does not exceed the proportional cost of the service attributable to the associated parcel. In addition, revenue from the fee cannot be used for any purpose other than that for which it is charged.

Prop 218 further requires that notice be provided to all utility users a minimum of 45 days prior to a Public Hearing and include the amount of the proposed rates; basis on which the proposed rates were calculated; reasons for the change; and date, time, and place of the Public Hearing. The Utilities Department mailed the required notice in English and Spanish as a utility bill insert to City customers throughout the month of August 2023 (Attachment "A") ("Prop 218 Notification").

Cost of Service Study.

The City initiated an update to
its 2019 comprehensive cost of
service study for the water and
wastewater enterprise funds.

The update was conducted by
the same third -party consulting
firm responsible for preparing
the City's 2019 cost of service
study. The scope of the eight -
month project was to evaluate
and update the City's short- and
long-term financial plan to
ensure sufficient revenues to fund operating and capital needs and identify cost -based and equitable rates for the City's water and sewer customers. A report was developed outlining the approach used to achieve these objectives, along with the study's findings, conclusions, and recommendations. That report, on file with the Utilities Department, provides the basis for implementing the proposed water and wastewater rates.

Compares utility revenues
to expenses
Uses prudent financial
planning criteria
Reviews a
specific period
Utilities is analyzed on a
"stand-alone basis"
Utilizes "cash basis"
methodology
• Determines level of rate (revenue) adjustment necessary • Adequate funding of renewal and replacements
• Meets target ending reserve balances
• 10 -year period for the City's study
• Rate study focus is next 4 -year period
• No transfer of funds between water and wastewater
• Rates must support operations and capital
• Generally -accepted method for municipal utilities
Graphic: Water and Wastewater Revenue Requirement Overview Public Workshop. The Utilities Department hosted a Public Workshop on September 27, 2023, at Shepard Hall to provide detailed information regarding its process for evaluating and setting rates and to receive comments and answer questions from the public (Attachment "B"). The City advertised the Public Workshop in the Prop 218 Notification, via a news release, and published an advertisement in the Santa Maria Times on September 20th (Attachment "C"). Four City residents attended the Public Workshop.

Public Hearing and Majority Protest. Proposed rates are subject to a written majority protest provision (50 percent plus one). Therefore, if 9,958 of the City's 19,913 water/sewer customers file a written protest opposing the proposed rates, the new rates cannot be adopted. Written protests to proposed rates are required to be delivered prior to the conclusion of the October 17th Public Hearing, as advertised in the Prop 218 Notice.

As of September 29, 2023, the City Clerk's Office had received four written protests.

Historical Rate Increases. From 1981 through 2017, and again from 2020 through 2023, the City of Santa Maria ("City') implemented annual water and/or sewer rate adjustments. 2 DISCUSSION:

The Utilities Department is committed to providing quality, safe, and reliable drinking water service and maintaining a complex sewer collection and treatment system at the lowest possible costs. Staff maintains and operates the water and sewer systems 365 days a year and the City incurs costs to meet all State and Federal regulatory requirements; funding of annual renewal and replacement capital; operating expenses for chemicals, supplies, and power; as well as maintaining prudent financial metrics such as reserve fund balances and debt service coverage ratios.

Staff conducts ongoing and systematic rate analyses through the use of a water and wastewater rate proforma. The proforma assesses and evaluates the City's current cost of service and rates for water and wastewater utilizing industry -recognized generally accepted rate -setting principles and methodologies, with the intent to achieve short- and long-term financial sustainability.

Rate structures must meet each utility's (water and wastewater) ongoing revenue requirements, including operating expenditures, bond covenants, capital improvement needs, and fund reserve policies. Water and sewer revenue requirements must:
■ Reflect the need to prudently fund annual water operation and maintenance expenses (including State Water infrastructure costs) and sewer operation and maintenance expenses;
■ Adequately fund annual water infrastructure renewal and replacement and plan for future sewer infrastructure replacement and regulatory requirements; and ■ Meet ending reserve targets annually using reserves to fund capital improvements.

As proposed, the water and sewer rates will meet ongoing, known revenue requirements for the utilities. It should, however, be noted that the proposed rates do not consider future operational or financial implications associated with unknown Central Coast Water Authority costs or new compliance requirements issued by Local, State, or Federal regulators related to the drought, water conservation requirements, or other more prescriptive regulations regarding water quality.

Water Rates. All customers are charged a flat rate based on the size of the water meter serving the property and are also charged a variable rate based on the amount of water used (consumption) each month. This billing system reflects the fixed or flat costs incurred to serve a customer through a meter, as well as the variable cost to supply increasing amounts of water.

In addition to providing necessary revenues to operate and maintain the City's utilities, the proposed rates also simplify the current rate structure. For water, this includes:
■ Eliminating separate water rates for Mobile Home Park customers. The current consumption patterns of Mobile Home Park customers are similar to General Use 3 customers; as such, both classes should be grouped in the same customer class to create the proportionality expected under Prop 218.

The water rates update was developed consistent with the principles and methodologies established by the American Water Works Association (AWWA) M1 Manual, Principles of Water Rates, Fees, and Charges to meet the requirement of Proposition 218 in developing cost -based and proportional rates.

Sewer Rates. Single-family residential customers, Multi -family residential customers, and Hotels, Motels, and Rest Homes are charged a flat rate for sewer. Commercial and heavy - use (industrial) customers are charged a variable rate. The variable rate depends on the type of business due to the actual discharge into the Wastewater Treatment Plant; each 100 cubic feet of wastewater is charged an incremental amount based on the business type, to account for the volume of wastewater discharged and the strength of that wastewater.

In addition to providing necessary revenues to operate and maintain the City's utilities, the proposed rates also simplify the current rate structure. For sewer, this includes:
■ The inclusion of the Apartment/Multi-Family _3
Rooms, and Mobile Homes within the customer class for Multi -Family Residential.

This was done to simplify the City's rate structure as well as to acknowledge that these customers are very similar in their use and requirements of the wastewater system.

The sewer rates update was developed using generally accepted rate -setting principles and industry standard methodologies as outlined in the Water Environment Federation's Manual of Practice No. 27, Financing and Charges for Wastewater Systems to develop cost -based and proportional rates.

Alternatives
The City Council may:
(1) Elect not to approve the rates. This will lead to inadequate funding of the utilities and the City may not meet bond covenants and other rate coverage requirements. (2) Direct Staff to evaluate alternate rates and return to City Council for future consideration. Any alternate rate options will also need to be based on a cost -of - service study and the requirements of Prop 218; therefore, alternate rates will not be significantly different from those currently proposed.

To maintain a positive cash balance and meet the fiscal requirements of the water and sewer utilities, the Utilities Department recommends approving the water and sewer rates as shown on the Prop 218 Notice. The proposed rates are necessary to generate sufficient revenue to fund the City's operating and capital needs. 4 If approved as proposed, City customers' combined monthly water and sewer bills will remain substantially lower in comparison to other surrounding water and sewer agencies (Attachment "D").

Fiscal Considerations
Proposed rates reflect fixed and variable costs incurred by the City for the supply, treatment, and distribution of drinking water to City customers and the collection and treatment of sewer from City customers. In addition, the recommended rates will allow the City to continue developing the fiscal resources required to manage operational, maintenance, repair, and replacement costs of the water and wastewater systems and maintain a positive cash balance.

Impact to the City
The recommended water and sewer rates are cost -based, equitable, and legally defensible.

Impact to the Community
Under State law, the City may not charge more than the cost to provide the service.

Because the City is required by State law to charge for the cost of the service, subsidies are not available for customers unless the City obtains outside funding to offset its costs.

Staff will continue to seek outside funding opportunities to reduce financial impacts on ratepayers.

ATTACHMENT A: NOTICE OF PROPOSED RATE INCREASES (PROP 218 NOTIFICATION) ATTACHMENT B: PUBLIC WORKSHOP QUESTIONS
ATTACHMENT C: PUBLIC NOTIFICATIONS
ATTACHMENT D: WATER AND SEWER RATES COMPARISONS
5 ij

NOTICE OF PROPOSED RATE INCREASES

TO WATER AND SEWER RATES
FOR 2024-2027 & PUBLIC HEARING
PROPOSITION 218 NOTIFICATION
Santa Maria
All -America City
'ilU'

THE CITY OF SANTA MARIA WILL CONDUCT A PUBLIC HEARING TO CONSIDER PROPOSED WATER AND SEWER RATES OVER THE NEXT FOUR YEARS, BEGINNING JANUARY 1, 2024. Proposed adjustments to water and sewer rates are necessary to account for increased costs to the water and sewer utilities. More information regarding proposed rates is provided in this notice, which is also available online at cityofsantamaria.org/utilities. Questions regarding the proposed rates may be directed to the Utilities Department at (805) 925-0951 ext. 7270.

The proposed rates will be considered by the City Council at a Public Hearing on Tuesday, October 17, 2023, at 5:30 p.m. in City Council Chambers at 110 East Cook Street, Santa Maria, California. The Public Hearing is currently planned to be held in person. However, in the event that the City determines that the meeting at which the Public Hearing will be held will be entirely virtual as a result of a local health emergency and pursuant to applicable law, notice of such meeting will be posted to the City's website as soon as it becomes available. The public is also invited to attend a workshop on the proposed rates on September 27, 2023, at 6:00 p.m. in the City Council Chambers at 110 East Cook Street, Santa Maria, California.

WATER RATES
The City is proposing to maintain the same rate structure, but with adjusted rates. Water rates include a fixed water meter charge each month (Table 1) and a variable water
consumption charge per unit (Table 2).

The monthly fixed charge recovers the City's fixed costs of operation and maintenance of water facilities and is based on meter size, measured in inches.

The variable consumption charge is based on actual water used (calculated in units*) and is proposed to be the same for all customer classes. This variable charge is based on the City's cost of providing water service, including
purchasing water and managing the City's water resources.

TABLE 1: FIXED WATER METER CHARGE (PER MONTH)
Meter
Current
Effective
Effective
Effective
Effective
Size
Rate
01/01/24
01/01/25
01/01/26
01/01/27
553/4"
$ 44.22
$ 46.61
$ 48.25
$ 49.80
$ 51.70
1"

73.85 77.85

80.58 83.17

86.34 1-1/4"

95.96 101.15
104.70
108.07
112.19
1-1/2"
147.25
155.23
160.67
165.83
172.16
2"
235.69
248.46
257.17
265.43
275.56
3"
442.20
465.15
482.50
498.00
517.00
4"
737.15
777.07
804.33
830.17
861.84
6"
1,473.85
1,553.67
1,608.17
1,659.83
1,723.16
The variable consumption charge includes three tiers. Each incremental tier accounts of providing water as consumption increases.

TABLE 2: VARIABLE WATER CONSUMPTION CHARGE (PER UNIT)
Water
Use
Tier
Current
Rate
Effective
01/01/24
Effective
01/01/25
Effective
01/01/26
Effective
01/01/27
General Use
0-5 Units
6-15 Units
16+ Units
1 2
3 $ 5.37

5.57 5.97
$ 5.63

5.82 6.19
$ 5.89

6.09 6.48
$ 6.12

6.33 6.74
$ 6.33

6.55 6.97
Mobile Home Park Use
0-5 Units
6+ Units
1 2
$ 4.80

5.40 See General Use
*1 Unit = 100 Cubic Feet (CCF)
for the proportional increased costs
Most single-family residential accounts require
a 3/4" water meter; commercial or industrial
accounts require larger water meters. The
current monthly average of water used by a
single-family residential customer is 10 units. If
the proposed rate structure is approved, 10
units of water will incur a consumption charge of
5 units in Tier 1 and 5 units in Tier 2. Under this
scenario, for water only, a single-family
residence with a 3/4" water meter using 10 units
of water per month will see an increase from the
prior year of $4.94 in January 2024, $4.29 in
January 2025, $3.90 in January 2026, and
$4.05 in January 2027.

The City of Santa Maria is responsible for the supply. treatment, and distribution of drinking water to City customers and the collection and treatment of sewer from City customers. The City is committed to providing quality. safe. and reliable drinking water services at the lowest possible cost as well as maintaining a complex sewer collection and treatment system. The City maintains and operates the water and sewer systems 365 days a year and incurs costs related to meet all State and Federal regulatory requirements; funding of annual renewal and replacement capital: operating expenses for chemicals, supplies, and power as well as maintaining prudent financial metrics such as reserve fund balances and debt service coverage ratios.

ATTACHMENT "A"

NOj

NOTICE OF PROPOSED RATE INCREASES

TO WATER AND SEWER RATES
FOR 2024-2027 & PUBLIC HEARING
PROPOSITION 218 NOTIFICATION
Santa Maria
All -America City
'III1I

SEWER RATES
Sewer rates include a fixed sewer charge each month for Residential -classed customers (Table 3) and a variable sewer charge each month for Commercial and Heavy Users -classed customers (Table 4).

TABLE 3: FIXED SEWER CHARGE (PER MONTH)
Type
Current
Rate
•
Effective
01/01/24
Effective
01/01/25
Effective
01/01/26
Effective
01/01/27
Single -Family Residential
Per account
$28.36
$ 32.07
$ 36.40
$ 40.48
$ 48.62
Multi -Family Residential
Per unit

21.80 21.27

24.14 26.84

32.24 Hotels, Motels, Rest Homes
Per unit

15.40 14.91

16.93 18.83

22.61 Apartment/
Multi -Family _3 Rooms

17.58 Mobile Home
Per space

24.34 The monthly fixed or flat charge is based
on the type of account and is assessed
either per account or per unit as follows:

Single -Family Residential (per account),
Multi -Family Residential (per unit), and
Hotels, Motels, and Rest Homes (per unit).

The variable sewer charge only applies to
Commercial -I, Commercial -II, and Heavy
Users -classed customers and is based on
the volume of wastewater discharged into
the sewer system (measured in CCF) and
the strength of that wastewater.

Commercial -I -classed customers include
Car Washes, Laundromats, Grocery Stores,
Office Buildings, Restaurants with
Pretreatment, Theaters, and other
Miscellaneous facilities. Commercial -II -classed customers include Bakeries and Food Processing facilities; Machinery and Car Lots, Restaurants without Pretreatment; and Mortuaries.

Heavy Users are charged based on the
amount of wastewater discharged to the
sewer system (measured in CCF), the
biochemical oxygen demand (BOD) of
that wastewater measured in pounds,
and the suspended solids (SS)
measured in pounds. BOD and SS
correspond to the strength of
wastewater discharged and associated
treatment costs.

TABLE 4: VARIABLE SEWER CHARGE
Current
Effective
Effective
Effective
Effective
Type
Rate
(SCCF)
01/01/24
01/01/25
01/01/26
01/01/27
Commercial -I ($/CCF)
$ 3.07 $ 3.73
$ 4.10
$ 4.74
$ 5.63
Commercial -II ($/CCF)

4.20 4.89

5.37 6.21

7.38 Heavy Users:

Consumption Charge ($/CCF)
$ 1.32
$ 1.35
$ 1.53
$ 1.73
$ 2.02
BOD ($/lb.)

0.60 0.48

0.54 0.61

0.71 SS ($/lb.)

0.64 0.56

0.64 0.72

0.84 Under California Government Code section 53759, there is a 120 -day statute of limitations for challenging any new, increased, or extended fee or charge. This statute of limitations applies to the water and sewer service rates and charges proposed in this notice and begins on the date that the resolution or ordinance adopting the rates described herein becomes effective.

HOW TO SUBMIT A WRITTEN PROTEST
Written protests to proposed rates may be submitted by a property owner or tenant directly responsible for payment of water and/or sewer fees. Only one protest per identified parcel will be counted. Written protests to proposed rates must be delivered in person or by mail prior to the conclusion of the Public Hearing on October 17, 2023, to the City of Santa Maria, Attn: Chief Deputy City Clerk, 110 East Cook Street, Santa Maria, CA 93454. Written protests may also be hand delivered during the Public Hearing, provided they are submitted to the City Clerk prior to the close of the public comment portion of the Public Hearing. Protests submitted electronically will not be accepted as written protests. Regardless of mailing date, all written protests must be received by the Chief Deputy City Clerk prior to the close of the Public Hearing in order to be accepted. Written protests must: (1) State that the identified property owner or tenant is opposed to the water rate increase, sewer rate increase, or both; (2) Provide the location of the identified parcel (by street address, assessor's parcel number, or utility account number); and (3) Include the name and signature of the property owner or tenant submitting the protest. The City Council will hear and consider all written protests and oral comments about the proposed rates at the Public Hearing. Oral comments will not qualify as valid protests unless accompanied by a written protest. Upon the conclusion of the Public Hearing, the City Council will consider adoption of the proposed rates as described in this notice. If written protests against the proposed rates are not presented by a majority of the property owners or tenants of the identified parcels subject to the proposed rates, the City Council will be authorized to adopt the rates as proposed.

ij

AVISO DE AUMENTOS DE TARIFAS PROPUESTAS

PARA AGUA Y ALCANTARILLADO
PARA 2024-2027 & AUDIENCIA PUBLICA
NOTIFICACION DE PROPUESTA 218
Santa Maria
biting
All -America City
'ilU'

LA CIUDAD DE SANTA MARIA REALIZARA UNA AUDIENCIA PUBLICA PARA CONSIDERAR LOS AUMENTOS PROPUESTOS EN LAS TARIFAS DE AGUA Y ALCANTARILLA EN LOS PROXIMOS CUATRO ANOS, A PARTIR DEL 1 DE ENERO DE 2024. Los aumentos propuestos a las tarifas de agua y alcantarillado son necesarios para cubrir los costos aumentados de los servicios de agua y alcantarillado. En este aviso se incluye mas informacion sobre las tarifas de agua y alcantarillado propuestas; tambien esta disponible en linea en cityofsantamaria.org/utilities. Las preguntas sobre los aumentos de tarifas propuestos pueden dirigirse al Departamento de Utilidades al (805) 925-0951 ext. 7270.

Las tarifas propuestas seran consideradas por el Concejo Municipal en una audiencia publica el martes 17 de octubre de 2023 a las 5:30 p.m. en las Camaras del Ayuntamiento en 110 East Cook Street, Santa Maria, California. El public() tambien esta invitado a asistir a un taller sobre los aumentos de tarifas propuestos el 27 de septiembre de 2023 a las 6:00 p.m. en las Camaras del Ayuntamiento en 110 East Cook Street, Santa Maria, California.

TARIFAS DE AGUA
TABLA 1: CARGO FIJO DEL MEDIDOR DE AGUA (POR MES)
Taman()
Tarifa
Tarifa en
Tarifa en
Tarifa en
Tarifa en
del Medidor
Actual
01/01/24
01/01/25
01/01/26
01/01/27
<_3/4"
$ 44.22
$ 46.61
$ 48.25
$ 49.80
$ 51.70
1"

73.85 77.85

80.58 83.17

86.34 1-1/4"

95.96 101.15
104.70
108.07
112.19
1-1/2"
147.25
155.23
160.67
165.83
172.16
2"
235.69
248.46
257.17
265.43
275.56
3"
442.20
465.15
482.50
498.00
517.00
4"
737.15
777.07
804.33
830.17
861.84
6"
1,473.85
1,553.67
1,608.17
1,659.83
1,723.16
proporcionar el servicio de agua, incluida la compra de agua y la gestion La Ciudad propone mantener la misma estructura de
tarifas, per() con tarifas ajustadas. Las tarifas de agua incluyen un cargo fijo de medidor de agua cada mes
(Tabla 1) y un cargo de consumo de agua variable por
unidad (Tabla 2).

El cargo fijo mensual recupera los costos fijos de
operacion y mantenimiento de las instalaciones de
agua de la Ciudad y del tamano del medidor, medido
en pulgadas.

El cargo de consumo variable se basa en el use real
del agua (calculado en unidades*), y se propone que
es el mismo para todas las clases de clientes. Este
cargo variable se calcula sobre el cost() de
de los recursos hidricos de la Ciudad.

El cargo por consumo variable incluye tres niveles. Cada nivel creciente da cuenta del aumento proporcional de los costos de suministro de agua a medida que aumenta el consumo.

La mayoria de las cuentas residenciales
unifamiliares deben usar un medidor de agua
de %-; las cuentas comerciales o industriales
deben utilizar medidores mas grandes. El
promedio mensual actual de agua utilizada por
un cliente residencial unifamiliar es de 10
unidades. Si se aprueba la estructura tarifaria
propuesta, 10 unidades* de agua incurriran un
cargo de consumo de 5 unidades en el Nivel 1
y 5 unidades en el Nivel 2. Bajo este siguiente
supuesto, por solo agua, una residencia
unifamiliar tipica con un 3/4" medidor de agua,
que usa 10 unidades de agua por mes tendra
un aumento con respect() al ano anterior de
$4.94 en enero 2024, $4.29 en enero 2025,
$3.90 en enero 2026 y $4.05 en enero 2027.

TABLA 2: CARGO POR CONSUMO DE AGUA VARIABLE (POR UNIDAD) Taman()
del Medidor
Nivel
Tarifa
Actual
Tarifa en
01/01/24
Tarifa en
01/01/25
Tarifa en
01/01/26
Tarifa en
01/01/27
Uso General
0-5 Unidades
6-15 Unidades
16+ Unidades
1 2
3 $ 5.37

5.57 5.97
$ 5.63

5.82 6.19
$ 5.89

6.09 6.48
$ 6.12

6.33 6.74
$ 6.33

6.55 6.97
Casas Moviles
0-5 Unidades
6+ Unidades
1 2
$ 4.80

5.40 Consulte
Uso General
*1 Unidad = 100 Pies Cubicos (CPC)
La Ciudad de Santa Maria es responsable del suministro, tratamiento y distribucion de agua potable a los clientes de la Ciudad y de la recoleccion y el tratamiento de las descargas de alcantarillado de los clientes de la Ciudad. La Ciudad se compromete a proporcionar servicios de agua potable de calidad, segura y confiable al menor costo posible, y tambien a mantener un complejo sistema de recoleccion y tratamiento de alcantarillado. La Ciudad mantiene y opera los sistemas de agua y alcantarillado los 365 dias del ano e incurre en costos relacionados con el cumplimiento de todos los requisitos reglamentarios estatales y federates; financiacion de fondos anual de renovacion y reposicion; gastos de operacion para los productos quimicos, suministros y energia; ademas de mantener metricas financieras prudentes, como los saldos de los fondos de reserva y los indices de cobertura del servicio de la deuda.

AVISO DE AUMENTOS DE TARIFAS PROPUESTAS

PARA AGUA Y ALCANTARILLADO
PARA 2024-2027 & AUDIENCIA PUBLICA
NOTIFICACION DE PROPUESTA 218
Santa Maria
All -America City
1IIII►

TARIFAS DE ALCANTARILLADO
Las tarifas de alcantarillado incluyen un cargo
fijo cada mes para clientes residenciales
(Tabla 3) y una tarifa variable para Usuarios
comerciales y de gran cantidad (Tabla 4).

El cargo mensual fijo se basa en el tipo de
cuenta y se evalua por cuenta o por unidad de
la siguiente manera: residencial unifamiliar
(por cuenta), residencial multifamiliar (por
unidad) y hoteles, moteles y casas de reposo
(por unidad).

El cargo de alcantarillado variable solo se
aplica a los clientes clasificados como
Comercial-I, Comercial-II y Usuarios
intensivos y se basa en el volumen de aguas
residuales descargadas en el sistema de
alcantarillado (medido en CCF) y la fuerza de
esas aguas residuales.

TABLA 3: CARGO FIJO DE ALCANTARILLADO (POR MES)
Tipo
Tarifa
Actual
Tarifa en
01/01/24
Tarifa en
01/01/25
Tarifa en
01/01/26
Tarifa en
01/01/27
Residencias Unifamiliares
Por cuenta
$28.36
$ 32.07
$ 36.40
$ 40.48
$ 48.62
Residencias de Multi-Familiares
Por unidad

21.80 21.27

24.14 26.84

32.24 Hotel/Motel/Asilo
Por unidad

15.40 14.91

16.93 18.83

22.61 Apartamentos/Multi-Familiares
.2 Cuartos

21.80 Consulte
Residencias de Multi-Familiares
Apartamentos/Multi-Familiares
>>-3 Cuartos

17.58 Casas Moviles
Por Espacio

24.34 TABLA 4: CARGO VARIABLE DE ALCANTARILLADO
'
Tarifa Tarifa en
Tarifa en
Tarifa en
Tarifa en
Tipo
Actual 01/01/24
01/01/25
01/01/26
01/01/27
($/C PC)
Comercial-I ($/CPC) $ 3.07 $ 3.73
$ 4.10
$ 4.74
$ 5.63
Comercial-II ($/CPC) 4.20 4.89

5.37 6.21

7.38 Usuarios de Grandes Cantidades:

Cargo de Consumo ($/CPC)
$ 1.32
$ 1.35
$ 1.53
$ 1.73
$ 2.02
BDO (8/I b.)

0.60 0.48

0.54 0.61

0.71 SS (8/I b.)

0.64 0.56

0.64 0.72

0.84 Los clientes clasificados como Comercial I
incluyen lavados de autos, lavanderfas,
tiendas de abarrotes, edificios de oficinas,
restaurantes con pretratamiento, teatros y
otras instalaciones miscelaneas. Los clientes
clasificados como Comercial II incluyen
panaderfas e instalaciones de
procesamiento de alimentos; Lotes de
Maquinaria y Autos; Restaurantes sin
Pretratamiento; y Funerarias.

Los usuarios de grandes cantidades se cobran
segun la cantidad de aguas residuales vertidas al sistema de alcantarillado (medido en CPC), la demanda bioqufmica de oxfgeno (BDO) de esas aguas residuales medida en libras, y los solidos suspendidos (SS) medidos en libras. BDO y SS corresponden a la fortaleza de las aguas residuales vertidas y los costos de tratamiento asociados.

Segun la seccion 53759 del Codigo de Gobierno de California. existe un plazo de prescripcion de 120 dias para impugnar cualquier tarifa o cargo extendido. Este plazo de prescripcion se aplica a las tarifas y cargos de los servicios de agua y alcantarillado propuestos en este aviso y comienza en la fecha en que sea aprobada la resolucion u ordenanza que adopta las tarifas aqui descritas.

COMO PRESENTAR UNA PROTESTA ESCRITA
Las protestas por escrito a los aumentos de tarifas propuestos pueden ser presentadas por un propietario o inquilino directamente responsable del pago de las tarifas de agua y/o alcantarillado. Solo se contara una protesta por parcela identificada. Las protestas por escrito a los aumentos de tarifas propuestos deben entregarse en persona o por correo antes de la conclusion de la Audiencia Publica el 17 de octubre de 2023 a la Ciudad de Santa Maria, Attn: Chief Adjunte City Clerk, 110 East Cook Street, Santa Maria, CA 93454. Las protestas por escrito tambien se pueden entregar personalmente durante la Audiencia Publica, siempre que se presenten al Secretario Municipal antes del cierre de la parte de comentarios publicos de la Audiencia Publica. Las protestas presentadas electronicamente no se aceptaran como protestas por escrito. Independientemente de la fecha de envfo, todas las protestas escritas deben ser recibidas por el Secretario Municipal Adjunto Principal antes del cierre de la Audiencia Publica para ser aceptadas. Las protestas por escrito deben: (1) Declarar que el propietario o inquilino de la propiedad identificado se opone al aumento de la tarifa del agua, al aumento de la tarifa del alcantarillado o ambos; (2) proporcionar la ubicacion de la parcela identificada (por direccion postal, numero de parcela del tasador o numero de cuenta de servicios publicos); y (3) Incluir el nombre y la firma del propietario o inquilino de la propiedad que presents la protesta.

El consejo de la ciudad escuchara y considerara todas las protestas escritas y comentarios orales sobre las tarifas propuestas en la Audiencia Publica. Los comentarios orales no calificaran como protestas validas a menos que vayan acompanados de una protesta por escrito. Al concluir la Audiencia Publica, el Concejo Municipal considerara la adopcion de las tarifas propuestas como se describe en este aviso. Si la mayorfa de los propietarios o inquilinos de las parcelas identificadas sujetas a las tarifas propuestas no presentan protestas por escrito contra las tarifas propuestas, el Concejo Municipal estara autorizado a adoptar las tarifas propuestas.

PROPOSED RATE INCREASES TO WATER AND SEWER RATES FOR 2024-2027 PUBLIC WORKSHOP — SHEPARD HALL
09/27/2023, 6:00 P.M.

Question or Comment Received

1. The sewer rate increase is out of line with other rate classifications and places an undue burden on people, especially seniors. Suggests an affidavit that seniors can sign affirming they are a small household; this affirmation would make them eligible for a reduced sewer rate.

2. It's a shame that more people don't take more interest in this process.

3. It seemed like with the Fitch Bond rating that the City's sewer fees were doing well.

4. I came to better understand the written protest process and it doesn't seem like enough protests are possible to stop the new rates.

S.

6. 7.

8. 9.

10. ATTACHMENT "B"

PROPOSED RATE INCREASES TO WATER AND SEWER RATES FOR 2024-2027

PUBLIC NOTIFICATION
MIMIC
WORKSllO1'
The City of Santa Maria will
conduct a public workshop to
discuss proposed water and
sewer rates for 2024-2027.

September 27, 2023
6:00 p.m.

Shepard Hall

SANTA MARIA PUBLIC LIBRARY
421 S. McClelland St., Santa Maria
Proposed water and sewer rate adjustments for
the next four years are necessary to account for
increased costs to the water and sewer utilities.

A notice containing the proposed rates was
included with City utility bills in August 2023 and
the proposed rates are also available for viewing
online at https://www.cityofsantamaria.org/
services/departments/utilities-department/rates.

For more information, call the Utilities
Department at (805) 925-0951 ext. 7270.

CITY OF SANTA MARIA
N. DO.

Utilities;
D
18051 92S•0951 est. 7270 www,altyufwntanslgpry
1/4 -PAGE ADVERTISEMENT

PUBLISHED IN SANTA MARIA TIMES
DATE: 09/21/2023
ATTACHMENT "C"

Regi onal Combined Water & Wastewater Comparison
„a„ 1N3WHJ'dll'd
SLO
Lomp oc
Santa Barbara
Mo ntecito
Mo rro Bay
Paso Robles
Solvang
Santa Paula
Pismo Beach
Santa Yne z
Go leta
Nipo mo
San ta Maria January 2027
Cuyama
Orcutt
Casmalia
Carpinte ria
Los Alamos CSD
Mission Hills CSD
San ta Maria January 2024
Ven tura
Guadalupe
A rroyo Gran de
Salinas
Van den berg CSD
Grov er Be ach
Buellto n
1 ■ $1
$151
$15
$156
$149
$143
$141
■
Nu $136
$136
{
!
$126
$122
$113
$108
$96
$191
$184
$184
$174
65 $250
$242
$234
$226
$220
$214
$294
$276
NOSIHVd WOJ S31dtl
LZOZ-17ZOZ HOd S31VZI H3M3S GNV H LVM 01 S3SV3HJNl 31V1:1 43S0dOHd

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,

CALIFORNIA, APPROVING WATER RATES AND SEWER RATES
COMMENCING EACH JANUARY 1 FROM 2024 THROUGH 2027
WHEREAS, the water and sewer rates as proposed are cost -based and will be used to meet all State and Federal regulatory requirements; fund renewal and replacement capital; fund operating and maintenance expenses; and help to maintain prudent financial metrics such as reserve fund balances and debt service coverage ratios; and
WHEREAS, the City of Santa Maria ("City") duly gave published advance notice of proposed rates necessary to reflect the fixed and variable costs incurred by the City for the supply, treatment, and distribution of drinking water to City customers and the collection and treatment of sewer from City customers; and WHEREAS, in August 2023, the City mailed to its water and sewer customers the Notice of Proposed Rate Increases to Water and Sewer Rates for 2024-2027 & Public Hearing - Proposition 218 Notification; and
WHEREAS, the aforementioned notice discussed the Public Hearing, outlined majority protest proceedings, and explained how rates are determined so that no customer pays more than the cost to deliver the associated service; and WHEREAS, on September 27, 2023, the City conducted an advertised Public Workshop to discuss the proposed water and sewer rates; and WHEREAS, on October 17, 2023, the City Council held an advertised Public Hearing on the proposed rates and determined that no majority protest exists; and WHEREAS, the proposed rates comply with the substantive requirements of Proposition 218; and
WHEREAS, the City has complied with the noticing, public hearing, and majority - protest provisions of Proposition 218 related to the proposed rates.

NOW, THEREFORE, IT IS HEREBY ORDAINED by the City Council of the City of Santa Maria, State of California, as follows:

SECTION 1. As of January 1, 2024, January 1, 2025, January 1, 2026, and January 1, 2027, water rates and sewer rates shall be updated as described in the Notice of Proposed Rate Increases to Water and Sewer Rates for 2024-2027 & Public Hearing - Proposition 218 Notification, incorporated herein by reference and on file with the City Clerk's Office.
1 SECTION 2. This Ordinance shall be in full force and effect 30 days after its passage.

Within 15 days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

SECTION 3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the Interim City Manager and City Attorney concerning any changes deemed necessary.

INTRODUCED at a regular meeting of the City Council held on the 17th day of October 2023 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:
111
111
///
///
///
///
///
///
///
2 Mayor
ATTEST:

Assistant City Clerk
APPROVED AS TO FORM:

City Attorney
APPROVED AS TO CONTENT:

Department Director
Interim City Manager
3