additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies.
This bill would also require a state agency, as defined, to create a military equipment use policy before engaging in certain activities, publish the policy on the agency’s internet website, and provide a copy of the policy to the Governor or the Governor’s designee, as specified. The bill would also require a state agency that seeks to continue use of military equipment acquired prior to January 1, 2022, to create a military equipment use policy.
This bill would also include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
By adding to the duties of local officials with respect to the funding, acquisition, and use of military equipment, this bill would impose a state-mandated local program.
The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:
(a) The acquisition of military equipment and its deployment in our communities adversely impacts the public’s safety and welfare, including increased risk of civilian deaths, significant risks to civil rights, civil liberties, and physical and psychological well-being, and incurment of significant financial costs. Military equipment is more frequently deployed in low-income Black and Brown communities, meaning the risks and impacts of police militarization are experienced most acutely in marginalized communities.
(b) The public has a right to know about any funding, acquisition, or use of military equipment by state or local government officials, as well as a right to participate in any government agency’s decision to fund, acquire, or use such equipment.
(c) Decisions regarding whether and how military equipment is funded, acquired, or used should give strong consideration to the public’s welfare, safety, civil rights, and civil liberties, and should be based on meaningful public input.
92 Ch. 406 — 2 —
Agenda Item #8.1.
(d) Legally enforceable safeguards, including transparency, oversight, and accountability measures, must be in place to protect the public’s welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used.
(e) The lack of a public forum to discuss the acquisition of military equipment jeopardizes the relationship police have with the community, which can be undermined when law enforcement is seen as an occupying force rather than a public safety service.
SEC. 2. Chapter 12.8 (commencing with Section 7070) is added to Division 7 of Title 1 of the Government Code, to read:
Chapter 12.8. Funding, Acquisition, and Use of Military Equipment
7070. For purposes of this chapter, the following definitions shall apply:
(a) “Governing body” means the elected body that oversees a law enforcement agency or, if there is no elected body that directly oversees the law enforcement agency, the appointed body that oversees a law enforcement agency. In the case of a law enforcement agency of a county, including a sheriff’s department or a district attorney’s office, “governing body” means the board of supervisors of the county.
(b) “Law enforcement agency” means any of the following:
(1) A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. (2) A sheriff’s department.
(3) A district attorney’s office.
(4) A county probation department.
(c) “Military equipment” means the following:
(1) Unmanned, remotely piloted, powered aerial or ground vehicles. (2) Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this subdivision.
(3) High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision.
(4) Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion. (5) Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. (6) Weaponized aircraft, vessels, or vehicles of any kind. (7) Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, 92 — 3 — Ch. 406
Agenda Item #8.1.
or a handheld ram designed to be operated by one person, are specifically excluded from this subdivision.
(8) Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this subdivision.
(9) Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this subdivision. (10) Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency. (11) Any firearm or firearm accessory that is designed to launch explosive projectiles.
(12) “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray.
(13) Taser Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device (LRAD).
(14) The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons.
(15) Any other equipment as determined by a governing body or a state agency to require additional oversight.
(16) Notwithstanding paragraphs (1) through (15), “military equipment” does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency.
(d) “Military equipment use policy” means a publicly released, written document governing the use of military equipment by a law enforcement agency or a state agency that addresses, at a minimum, all of the following:
(1) A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment.
(2) The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment. (3) The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment.
(4) The legal and procedural rules that govern each authorized use. (5) The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any officer, agent, or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy.
(6) The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight 92 Ch. 406 — 4 —
Agenda Item #8.1.
authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy.
(7) For a law enforcement agency, the procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the law enforcement agency will ensure that each complaint, concern, or question receives a response in a timely manner.
(e) “State agency” means the law enforcement division of every state office, officer, department, division, bureau, board, and commission or other state body or agency, except those agencies provided for in Article IV (except Section 20 thereof) or Article VI of the California Constitution. (f) “Type” means each item that shares the same manufacturer model number.
7071. (a) (1) A law enforcement agency shall obtain approval of the governing body, by an ordinance adopting a military equipment use policy at a regular meeting of the governing body held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M.
Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable, prior to engaging in any of the following:
(A) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
(B) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (C) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(D) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body.
(E) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter.
(F) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment. (G) Acquiring military equipment through any means not provided by this paragraph.
(2) No later than May 1, 2022, a law enforcement agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall commence a governing body approval process in accordance with this section. If the governing body does not approve the continuing use of military equipment, including by adoption pursuant to this subdivision of a military equipment use policy submitted pursuant to subdivision (b), within 180 days of submission of the proposed military equipment use policy to the governing body, the law enforcement agency shall cease its use of 92 — 5 — Ch. 406
Agenda Item #8.1.
the military equipment until it receives the approval of the governing body in accordance with this section.
(b) In seeking the approval of the governing body pursuant to subdivision (a), a law enforcement agency shall submit a proposed military equipment use policy to the governing body and make those documents available on the law enforcement agency’s internet website at least 30 days prior to any public hearing concerning the military equipment at issue. (c) The governing body shall consider a proposed military equipment use policy as an agenda item for an open session of a regular meeting and provide for public comment in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable.
(d) (1) The governing body shall only approve a military equipment use policy pursuant to this chapter if it determines all of the following:
(A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (B) The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties. (C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.
(D) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. (2) In order to facilitate public participation, any proposed or final military equipment use policy shall be made publicly available on the internet website of the relevant law enforcement agency for as long as the military equipment is available for use.
(e) (1) The governing body shall review any ordinance that it has adopted pursuant to this section approving the funding, acquisition, or use of military equipment at least annually and, subject to paragraph (2), vote on whether to renew the ordinance at a regular meeting held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M.
Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable.
(2) The governing body shall determine, based on the annual military equipment report submitted pursuant to Section 7072, whether each type of military equipment identified in that report has complied with the standards for approval set forth in subdivision (d). If the governing body determines that a type of military equipment identified in that annual military equipment report has not complied with the standards for approval set forth in subdivision (d), the governing body shall either disapprove a renewal of the authorization for that type of military equipment or require modifications 92 Ch. 406 — 6 —
Agenda Item #8.1.
to the military equipment use policy in a manner that will resolve the lack of compliance.
(f) Notwithstanding subdivisions (a) to (e), inclusive, if a city contracts with another entity for law enforcement services, the city shall have the authority to adopt a military equipment use policy based on local community needs.
7072. (a) A law enforcement agency that receives approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
(1) A summary of how the military equipment was used and the purpose of its use.
(2) A summary of any complaints or concerns received concerning the military equipment.
(3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. (4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.
(5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.
(b) Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the law enforcement agency shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment. 7073. (a) A state agency shall create a military equipment use policy prior to engaging in any of the following:
(1) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
(2) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (3) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
92 — 7 — Ch. 406
Agenda Item #8.1.
(4) Collaborating with a law enforcement agency or another state agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body.
(5) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter.
(6) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, or to apply to receive, acquire, use, or collaborate in the use of, military equipment. (7) Acquiring military equipment through any means not provided by this subdivision.
(b) No later than May 1, 2022, a state agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall create a military equipment use policy.
(c) A state agency that is required to create a military equipment use policy pursuant to this section shall do both of the following within 180 days of completing the policy:
(1) Publish the military equipment use policy on the agency’s internet website.
(2) Provide a copy of the military equipment use policy to the Governor or the Governor’s designee.
7074. The Legislature finds and declares that ensuring adequate oversight of the acquisition and use of military equipment is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities and shall supersede any inconsistent provisions in the charter of any city, county, or city and county. 7075. Nothing in this chapter shall preclude a county or local municipality from implementing additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies.
SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Chapter 12.8 (commencing with Section 7070) to Division 7 of Title 1 of the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:
Requiring local agencies to hold public meetings prior to the acquisition of military equipment further exposes that activity to public scrutiny and enhances public access to information concerning the conduct of the people’s business.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would 92 Ch. 406 — 8 —
Agenda Item #8.1.
result from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution.
O
92 — 9 — Ch. 406
Agenda Item #8.1.
CITY OF ST. HELENA
RESOLUTION NO. 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ST. HELENA APPROVING ST. HELENA POLICE DEPARTMENT POLICY 707 “ACQUISITION AND USE OF MILITARY EQUIPMENT”
WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481, relating to the use of military equipment by law enforcement agencies; and
WHEREAS, Assembly Bill 481, codified at California Government Code sections 7070 through 7075, requires law enforcement agencies to obtain approval of the applicable governing body prior to taking certain actions relating to the funding, acquisition, solicitation, or use of military equipment; and
WHEREAS, Assembly Bill 481, requires that the approval by the governing body be by an ordinance adopting a military equipment use policy, at a regular meeting held pursuant to open meeting laws; and
WHEREAS, Assembly Bill 481 allows the governing body of a city to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it makes specified determinations with respect to a military equipment use policy; and WHEREAS, a draft of the St. Helena Police Department Policy 707 “Military Equipment” was published on the Department’s internet website, and provided to the City Council at least 30 days prior to public hearing in accordance with requirements of Government Code section 7071; and
WHEREAS, the St. Helena Police Department’s Lexipol Policy 707 “Military Equipment” meets the requirements of California Government Code section 7070, subdivision (d); and
WHEREAS, the St. Helena Police Department currently does not does not use, possess, or has allocated funds for military equipment as defined in Government Code section 7070(c); and
WHEREAS, Policy 707 “Military Equipment” will safeguard the public’s welfare, safety, civil rights, and civil liberties should the St. Helena Police Department request the procurement, use, or allocation of funds to acquire “Military Equipment”; and WHEREAS, no prior military use policy has existed in the City of St. Helena that was applicable to the use of military equipment, and the adoption of such policy shall serve to secure future compliance.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ST. HELENA DOES ORDAIN AS FOLLOWS:
Agenda Item #8.1.
Section 1. Recitals. The City Council of the City of St. Helena does hereby find the above referenced recitals are true and correct and material to the adoption of this resolution.
Section 2. Purpose and Authority. The purpose of this resolution is to establish the regulations pertaining to the police department’s approval, acquisition, and reporting requirements of military equipment required AB 481, signed into law on September 30, 2021.
Section 3. Approval of Military Equipment Policy. The City Council hereby adopts and approves the St. Helena Police Department Policy 707 “Military Equipment” as set forth in Exhibit A attached hereto.
Section 4. Environmental Determination. The City Council finds that adoption of this resolution and St. Helena Police Department Policy 707 are exempt from the provisions of the California Environmental Quality Act (“CEQA”) because they will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project,” as defined in Section 15378 of the CEQA Guidelines.
Section 5. Severability. If any section, subsection, sentence, clause or phrase of the policy is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of the policy. The City Council hereby declares that it should adopt the policy and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentence, clauses or phrases be declared unconstitutional.
Section 6. Publication. The City Clerk is hereby ordered and directed to certify to the passage of this resolution by the City Council of the City of St. Helena, California.
Section 7. Effective Date. This resolution shall be in full force and effective upon its adoption.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of St.
Helena, California, held on the 28th day of June 2022, by the following vote:
Mayor Geoff Ellsworth:
Vice Mayor Paul Dohring:
Council Member Anna Chouteau:
Council Member Lester Hardy:
Council Member Eric Hall:
Agenda Item #8.1.
APPROVED: ATTEST:
______________________ ________________________
Geoff Ellsworth, Mayor Cindy Tzafopoulos, City Clerk
Agenda Item #8.1.
AB 481
Military
Equipment
The purpose of this policy is to provide
guidelines for the approval, acquisition, and
reporting requirements of military equipment
(Government Code § 7070; Government Code §
7071;Government Code § 7072).
Agenda Item #8.1.
Governing body – The elected or appointed body that oversees the Department.
Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.
Weaponized aircraft, vessels, or vehicles of any kind.
Definitions (Government Code § 7070)
Agenda Item #8.1.
Military Equipment continued
• Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram. • Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition. • Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code §30515, except for standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld • pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic • devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.
Agenda Item #8.1.
Government Codes § 7070 and § 7071
Government Code § 7070: The following constitutes a list of qualifying equipment for the Department (Currently the Saint Helena Police Department does not use, possess, or allocate funds for the listed Military Equipment per (Government Code § 7070)).
Government Code § 7071: The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing. (d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body. (f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above.
Agenda Item #8.1.
Government Code § 7072
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use.
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071).
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy.
Outside agencies responding to this jurisdiction as mutual aid per the request of the Saint Helena Police Department shall adhere to their approved policy as approved by, the responding agencies governing body in accordance with (Government Code § 7071).
Agenda Item #8.1.
Report to the City Council
Regular City Council - 28 Jun 2022
Agenda Section: OLD BUSINESS
Subject: Consideration and proposed approval of a resolution: (1) approving Revision No. 3 to City Council Policy P-FI-0016 Financial Policy related to: (a) compliance with GASB
Statement No. 98 updating the name, "Comprehensive Annual Financial Report" to "Annual Comprehensive Financial
Report", (b) update language related to financing Capital Improvement Projects and (2) repealing an rescinding any previous policies or administrative memoranda which are inconsistent with City Council Policy P-FI-0016 Financial Policy, Revision No. 3.
CEQA
Determination:
Not a CEQA project
Prepared By: April Mitts, Assistant City Manager
Reviewed By: April Mitts, Assistant City Manager
Approved By: James C. McCann, Interim City Manager
BACKGROUND
On November 27, 2018 City Council adopted Financial Policy P-FI-0016 which provides a structured, central repository for a variety of fiscal policies which include: General Financial Principals, Annual Operating Budget Policy, Capital Improvement Program, Revenues, Expenditures, Cash Management, Debt Management, Fund Definitions and Classifications, fund Balance Levels, Financial Reporting, and Review and Update requirements.
On February 12, 2019, City Council approved Revision No. 1 to the Policy and on September 10, 2019, City Council approved Revision No. 2.
Updates to this policy requires City Council approval.
Agenda Item #9.1.
DISCUSSION
Staff is recommending Council adopt Revision No. 3 to the City's current Financial Policy - P-FI-0016 in two areas: (1) compliance with GASB Statement No. 98 updating the name, "Comprehensive Annual Financial Report" to "Annual Comprehensive Financial Report" and (2) update language related to financing Capital Improvement Projects. Both revisions are explained in great detail below.
Staff recognizes there are other financial policy revision considerations expressed by Council which are not addressed in the current update. The update before Council tonight is solely to address the administrative update in accordance with GASB Statement No. 98 as well as provide clarifying and additional language to the policy as it pertains to financing capital projects.
Other policy considerations are addressed at the end of this report, under the section titled, "Future Policy Considerations".
Summary
During the past few months City Council has had numerous discussions regarding the General Obligation Bond which was placed on the June 7, 2022 ballot for consideration.
A portion of the discussion included a review of the City's current Financial Policy - P-FI0016 as it pertains to issuance of debt and Capital Improvement Programs.
Based on feedback received on January 31, 2022, staff presented a revised policy for Council consideration on February 8, 2022. As stated at the February 8, 2022 meeting, staff consulted the City's Municipal Financial Advisor and City Attorney and the policy, in its current form, does allow debt to be issued for critical infrastructure, including for enterprise funds, and does allow utilization of the General Fund for emergency repairs.
However, it was the consensus of Council and staff that the language contained in the policy can be further refined.
Council provided direction to bring the policy back at a subsequent meeting with clarifying language, assessment of best practices, and to develop additional considerations for the criteria to utilize General Fund resources.
The proposed policy updates are provided below.
1. Administrative Update - Compliance with GASB Statement No. 98 On October 19, 2021, the Governmental Accounting Standards Board (GASB) issued a pronouncement that changes the name of the most extensive report prepared following it standards to the Annual Comprehensive Financial Report, or ACFR. Until that time, the name applied to those reports was the Comprehensive Annual Financial Report. This name change was promoted by GASB stakeholders raising concerns that the acronym of the prior name of the report sounds like a profoundly offensive term when spoken. The changes in the name and acronym were widely supported by individuals and stakeholder groups that responded to the April 2021 Exposure Draft proposing the changes.
Agenda Item #9.1.
Statement No. 98, The Annual Comprehensive Financial Report, establishes the annual comprehensive financial report and ACFR in generally accepted accounting principles (GAAP) for state and local governments and eliminates the prior name and acronym.
Otherwise, no changes were made to the report's structure or content.
Statement No. 98 is available on the GASB website, www.gasb.org.
2. Policy Update - Financing Capital Improvement Projects Following the February 8, 2022 meeting, staff has been working with Mark Walsh, CPA to review financial policies and best practices. We reviewed financial and debt issuance policies published which includes: the Town of Yountville, the City's of Calistoga, South Lake Tahoe, San Diego, Newport Beach, Sebastopol, Gilroy, and Sacramento as well as the County's of Monterey, Napa, and Sonoma.
Below is a summary of the research completed followed by the recommended policy updates based on this research and in consultation with Mark Walsh, CPA.
Policy Research and Considerations
(a) GO Bond Financing to Fund Enterprise Funds' Capital Assets Debt issuance and financial policies published by local governments were reviewed that may inform a discussion of issuing general obligation bond (GO Bond) proceeds to acquire or improve enterprise funds' capital assets. After review, no policy guidance directly addressing the use of GO bond proceeds for enterprise funds' assets was found.
(b) The Most Relevant Policy Guidance is Focused on Funding Sources We also looked at information issued by "best practice" organizations, like the Government Finance Officers Association (GFOA) and the California Debt and Investment Advisory Commission (CDIAC). Some relevant policy considerations recommended by the CDIAC were found in its, "California Debt Issuance Guide," but did not find direct policy examples for local governments. The GFOA did not have examples of financial or debt issue policies specifically addressing GO bond proceeds used for enterprise fund's assets.
However, CDIAC's California Debt Issuance Guide provides clarifying language regarding understanding the difference between funding and financing. Below is an excerpt from this document:
Understanding the Difference Between Funding and Financing "Funding" refers to the stream of public agency revenue that pays for or offsets the cost of an asset or service or supports repayment of debt that finances the asset. In contract, "financing" refers to the method of paying for an asset or service, including debt financing. For example, a public agency may borrow money (financing) to pay the cost of an asset and repay the loan from a recurring Agenda Item #9.1.
tax (funding). The tax or source of repayment is referred to as the security for the borrowing."
With respect to the right funding source, CDIAC's guidance says the agency must consider whether the primary users of a capital asset should pay for the cost of construction of improvement or whether other stakeholders should contribute. Within the context of taxpayer equity, the guidance suggests that when an asset is specific, primary users should pay and when an asset's use is broad, everyone should pay.
The first question of using GO Bond proceeds to finance enterprise assets is the intended funding source.
Based on information collected and Council direction, staff recommends the following updates to the current Financial Policies:
1. Addition of policy language for interfund loans in Section III.C.6.a, Section III.C.7., and the addition of Section K.;
2. Addition of clarifying language to Section III.C. Capital Improvement Program; and
3. Addition of a Funding Capital Improvements section within the Capital Improvement Program policy section (Section III.C.10).
The recommended updates to the policy are provided as Attachment 1 (redlined version) and Attachment 2 (clean version).
Future Policy Considerations
As noted above, the intent of this policy update is to directly address a GASB administrative update as well as an update based on Council direction at the January 31, 2022 and February 8, 2022 Council Meetings.
As there has been an expressed interest in additional policy updates, staff is seeking Council direction as to what other policy considerations should be brought back to Council for consideration at a later time. Identified policies include, but are not limited to, General Fund reserve levels, use of one-time revenues, use of fund balance in excess of established reserve levels, Capital Facilities and Improvement Policies, and Capital Improvement Program (CIP) Policies. It is recognized CIP policies may be considered a separate policy initiated through Public Works.
FISCAL IMPACT
None
RECOMMENDED ACTION
Staff recommends City Council adopt the attached resolution and provide additional direction in regards to other policy considerations to be brought back to City Council for consideration.
ATTACHMENTS
Attachment 1 - P-FI-0016 Financial Policy Revision #3 redlined Agenda Item #9.1.
Attachment 2 - P-FI-0016 Financial Policy Revision #3 clean Attachment 3 - Resolution Amendment No. 3 to P-FI-0016 Financial Policy Agenda Item #9.1.
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Policy # P-FI-0016
Revision # Revision #23
Implementation Date 2019-09-10
Title:
Financial Policy
Last Update Date 2019-09-10
Approval by City Council September 10, 2019 Date Approved 2018-11-27 I. Purpose, Overview and Scope of this Policy
This document establishes policies of overall financial management, budget development, and fiscal administration for the City of St. Helena. Included herein are statements and principles designed to guide the City in maintaining its financial stability and delivering high-quality services to the public.
Formally adopted financial policies assist elected officials and City staff in the development of fiscal management practices, save time, and provide structure for financial decisions, promote public confidence, enhance transparency, and provide continuity over time. These policies will be updated periodically, but are designed with a long-term perspective and provide the basic framework and road map for addressing a wide variety of financial and economic conditions that the City will encounter. A fiscal policy supports long-term planning and enhances the City’s effectiveness in implementing long-term strategies to deliver efficient public services.
This document provides a structured, central repository for a variety of fiscal policies which are organized into the following categories:
A. General Financial Principles
B. Annual Operating Budget Policy
C. Capital Improvement Program
D. Revenues
E. Expenditures
F. Cash Management
G. Debt Management
H. Fund Definitions
I. Fund Balance Classifications
J. Fund Balance Levels
K. Financial Reporting
L. Review and Update
II. Authority
Updates to this policy require City Council approval.
Agenda Item #9.1.
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III. Policy
A. General Financial Principales
It is the overall policy of the City of St. Helena to build upon a sound conceptual framework to:
1. Manage its financial resources in a responsible and prudent manner.
2. Provide financial information in a relevant, thorough and timely manner, and in a format that effectively communicates financial status to the Council, citizens, and City employees.
3. Establish and maintain prudent fund balance levels.
4. Maintain financial reporting in compliance with current governmental accounting standards.
5. Promote and implement a relevant and strong system of internal financial controls to manage significant risks and monitor the reliability and integrity of financial and operating reporting.
6. Promote constructive and proactive financial decision making that includes, and is responsive to, citizens input and guidance.
7. Integrate long-term operating and capital resources planning into the annual budget process.
8. Allow for uncertainties and maintain a posture of financial flexibility.
9. Develop programs in a manner that support the City’s long-term ability to cover costs and provide the level and quality of service expected by its citizens.
10. Manage debt responsibly.
11. Establish and implement investment policies in accordance with City code and State law.
B. Annual Operating Budget Policy
1. Adoption of Annual Operating Budget
a. Per Municipal Code 2.12.060.B.9, the City Manager supervises the preparation of a detailed, proposed municipal budget and submit the same to the Council on or before May 15th of each year, and to offer their recommendations as to such increases, decreases, cancellations, transfers, or changes in any of the items included in the proposed budget as in their judgment should be made before the adoption of the budget.
b. An annual operating budget will be adopted by the City Council no later than June 30th of each fiscal year. The budget will include appropriations that provide expenditure authority to public officials responsible for operating their respective departments to fulfill obligations to provide public services as delegated by the City Council.
Agenda Item #9.1.
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c. Funds may not be expended for a new fiscal year until the budget for that fiscal year has been adopted by City Council or special provisions have been adopted by the City Council.
d. The budget presented must be balanced, which is when total projected expenditures do not exceed total estimated revenues. If projected expenditures exceed total estimated revenues, , City Council may approve a planned use of accumulated fund balances in prior years for inclusion in the budget.
e. The City should maintain a multi-year financial forecast (Long Range Financial Forecast) that is updated as part of the annual budget development process.
f. One-time revenue sources are not to be relied upon to fund on-going operations.
2. Controlling and Adjusting the Annual Budget
a. The City structures and controls its budget by use of the following funds:
i. General Fund - is the primary operating fund of the City. It accounts for the receipt of property tax, general sales tax, transient occupancy tax, and other general revenues available to finance City operations. The General Fund accounts for all revenues and expenditures that do not fit the criteria to be accounted for in other funds with external restrictions imposed by their respective financing sources.
ii. Special Funds - account for resources externally restricted for use by their respective funding sources, such as grant programs financed by the State and Federal governments.
iii. Enterprise Funds - account for water and wastewater systems, and may be used for fee-based programs if the intention is to recoup almost all City costs through fees or other charges. iv. Internal Service Funds - account for centralized service costs (such as vehicle services made available to all operating departments). Charges from the internal service funds appear as an expenditure in the user department, and as revenue in the central service department.
b. The City’s budget is controlled at the fund level by the City Council. i. The City Council, as representatives of the public, is the sole authority for creating or increasing expenditure appropriations within a fund. The City Council is also the exclusive authority for approving changes in revenue estimates with funds.
c. Department Directors will be held directly responsible and accountable for their budgets as originally adopted by the City Council Agenda Item #9.1.
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or as thereafter revised in accordance with this policy. The level of expenditure control for departments is at the departmental level. d. Departments that operate programs among different funds are limited to the appropriation levels within any one fund. This policy also describes the level of authority needed to amend the adopted budget.
3. Transfers and revisions to the adopted budget:
a. The City Council approves:
i. All increases in appropriations within a fund.
ii. All transfers of appropriations between funds.
iii. All decreases in appropriations, with the exception that the City Manager may direct Department Directors to suspend
expenditures pending Council consideration of decreases in appropriations needed to respond to fiscal emergency.
b. The City Manager approves:
i. The City Manager may make budget transfers between
departments or programs as long as those changes do not increase overall appropriations within any one given fund.
Transfers between funds, overall increases in fund
appropriations, and overall increases in project budgets can only be made through City Council action.
c. Department Directors may authorize the transfer of appropriations within a department, except transfers: (1) that would purport an increase in the number of regular personnel, and (2) that would decrease appropriations for capital outlay.
d. Finance Department:
i. The Finance Department is responsible for providing forms and instructions for requesting appropriation adjustments, and for analyzing and recommending adjustments to the City Manager.
The Finance Department will record approved budgets and adjustments into the City’s financial system.
ii. The Finance Department will ensure that the City’s
Comprehensive Annual Comprehensive Financial Report
(CAFRACFR) includes a comparison of actual expenditures against the final budget, as amended and adjusted under the authorities of this policy.
4. Operating expenditure appropriations not spent during the fiscal year lapse at year-end, except for:
a. Encumbrances or commitments, as in the form of finalized purchase orders made during the fiscal year that have not been completed at year-end.
Agenda Item #9.1.
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b. Appropriations for capital improvement projects and ongoing grants with a life-cycle beyond one year.
5. Governmental funds use the modified accrual basis of accounting while proprietary and fiduciary fund types are budgeted on a full accrual basis of accounting. The CAFRACFR presents City’s finances on a Generally Accepted Accounting Principles (GAAP) basis and the City’s budget is prepared in conformance with these standards.
6. The City’s budget must comply with the annual determination of the City’s appropriations limit (GANN Limit) calculated in accordance with Article XIIB of the Constitution of the State of California and the City shall adopt an annual resolution to this effect.
C. Capital Improvement Program
1. The City will develop and maintain a five-year Capital Improvement Program (CIP) to be updated annually in conjunction with the operating budget. The CIP should reflect the current and changing needs of the community as well as enhance the community’s quality of life.
a. Note: The five-year CIP is not a budget commitment, and its acceptance by City Council does not provide officials the authority to spend. The plan is an expression of recognized needs, and a tool for use in budgeting.
2. All projects within the CIP are to be tracked systematically and reports should clearly indicate funding provided, expenditures incurred, and required future funding by project.display budget-to-actual performance by project, fund category, and project status.
3. Capital improvements that specifically benefit a select group of users and/or are fee-for-service based are to be financed/funded through user fees, service charges, special assessments and taxes, or development impact fees.
4. Funding and Financing
a. Funding refers to the stream of public agency revenue that pays for or offsets the cost of an asset or service or supports repayment of debt that finances the asset.
b. Financing refers to the method of paying for an asset or service, including debt financing.
3.5. A Capital improvement budget should systematically identify potential funding sources and financing options and match those resources to the capital needs identified in the Capital Improvement Program. It should also make the difficult decision regarding which capital needs the agency will fund, when it will fund them, and from what resource.
6. Capital improvements that specifically benefit a fee-for-service enterprise operation (such as Water/Wastewater) are to be financed/funded through Agenda Item #9.1.
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the service fees generated within that operation and fund, unlessexcept in the event authorized by the voters of the City approve taxes or assessments for the purpose of financing and/or funding such capital improvements, in which case revenues from the voter approved taxes or assessments may also be used to finance and/or fund those capital improvements. Such fFees charged for enterprise operations should be supported by periodic updates to the related utility master planrate study prepared for those fees in accordance the California Constitution and all applicable laws.
a. Notwithstanding the above paragraph, Tthe city recognizes there may be emergency situations where enterprise operation capital improvements may need additional funding outside of the service fee structure, which may include direct borrowing and issuance of revenue bonds, and outside voter authorized initiatives such as a general obligation bond. For the completion of critical enterprise capital projects, City Council may authorize use of General Fund reservesunassigned fund balance (See Section III.C.7) in the following situations:
i. Life and safety emergencies
ii. Project completion is required (via mandate, cease and desist order, etc) and the current rate structure does not support the full cost to complete project.
7. The following shall be taken into consideration when using General Fund unassigned fund balance that specifically benefits a fee-for-service enterprise operation (as noted in Section III.C.6.):
a. The City Council shall find that an emergency or extraordinary need exists to justify the use of these funds. Funds shall be appropriated only after the City Manager and Administrative Services Director have prepared and presented to the City Council an analysis of the emergency or extraordinary need that addressed the nature of the proposed expenditure(s) and any associated revenue requirements in subsequent years.
b. Use of fund balance does not cause the General Fund to fall below the reserve level identified in Section III.J.1.
i. If situation arises where reserve level may/will fall below the level identified in Section III.J.1., the City Manager and Administrative Services Director shall provide a funding plan to the City Council, including proposed source(s) of funding and a timeline to bring the balance of the General Fund reserve to the level identified in Section III.J.1.
c. Although use of unassigned General Fund monies are considered unrestricted and may be used for any municipal purpose, the use of Agenda Item #9.1.
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unassigned fund balance to an enterprise fund will normally be considered an interfund loan (see Section III.K) unless Council otherwise finds and documents an exigent need.
4.8. Transfers of resources to the CIP fund will be evaluated on an annual basis dependent upon the existence of available surplus dollars.
9. The City should strive to maximize the use of capital grants and State assistance in funding capital improvements before utilizing general revenue sources.
10. Funding Capital Improvements
The CIP uses a variety of funding sources to support projects. This section outlines some of the more common municipal funding sources used for funding capital improvements.
a. Pay-as-you Go (Cash or Pay-Go)
Debt financing is not always the most cost-effective way to purchase assets. Many times, the costs of interest and financing outweigh the costs of paying with cash, if that is an option. Pay-GO avoids these additional costs, but the agency must pay the full cost of the asset at the outset. Improvements typically made through the Pay-Go program tend to be smaller in scale and/or short-term improvements.
Additionally Pay-Go can be used to provide an additional funding source and offset long-term borrowing and used in conjunction with borrowing.
b. Long-Term Financing Methods
i. General Obligation Bonds (GO Bond)
• Permissible Projects – Acquisition and improvement
of public property and facilities.
• Approval Procedure – Issuer resolution and
ordinance; two-thirds voter approval.
• Source of Repayment – Ad Valorem property taxes
paid by owners of taxable property in the jurisdiction. ii. Special Assessment Bonds
• Permissible Projects – Acquisition of property and
improvement of infrastructure and additional
facilities of benefit to the property that is charged.
• Approval Procedure – Engineers report, weighted
majority protect procedure.
• Source of Repayment – Assessments on the
property/fees limited special benefit to the property
that is being charged.
iii. Special Tax (e.g. Mello-Roos) Bonds
Agenda Item #9.1.
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• Permissible Projects – Acquisition and improvement
of public property and facilities.
• Approval Procedure – Two-thirds voter approval or –
where there are fewer than 12 registered voters – by
landowners in the proportion to land owned within
the Community Facilities District.
• Source of Repayment – Special tax on property within
community facilities district.
iv. Certificates of Participation
• Permissible Projects – Unrestricted use.
• Approval Procedure – Resolution of governing board
approving lease or installment agreement.
• Source of Repayment – Lease or installment sale
agreement paid from General Fund (lease) or
special/enterprise (installment sale) revenues.
v. Revenue Bonds
• Permissible Projects – Acquisition and improvement
of revenue-producing public property and facilities.
• Approval Procedure – Issuer resolution and in some
instances public vote.
• Source of Repayment – Service charges and other
fees paid by users of project or services.
vi. Mark-Roos JPA Bonds
• Permissible Projects – Acquisition and improvement
of public property, facilities, and/or equipment.
• Approval Procedure – Resolution of governing boards
of JPA and participating entities.
• Source of Repayment – Taxes, user fees, lease or
installment payments, from local agencies to JPA.
c. Development Impact Fees
Development Impact Fees are collected to mitigate the impact of new development in the community. The amount of the impact fee collected is based on a portion of the financing needed for identified public facilities. Property being developed is assessed the fee(s) at the time the building permit is issued.
d. Donations and Developer Funding
Projects may be funded by contributions and/or donations from private sources such as residents, developers, private organizations, and businesses. Contributions by developers and vendors may be reimbursed with City funds in future years through mechanisms such as a development agreement.
Agenda Item #9.1.
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e. Enterprise Funds
Enterprise Funds account for specific services that are funded directly by fees and charges to users. These funds are intended to be fully self-supporting and are not typically subsidized by any general revenue or taxes. Within each Enterprise Fund, budgets are developed which are sufficient to fund current year operations and maintenance expense, as well as provide for current and future years’ upgrade, replacement, and expansion-related capital construction requirements.
f. Grants
Some projects are entirely or partially funded by grants and reimbursements from the State and federal government and other agencies. The receipts of certain grants and reimbursements typically follow the award of contracts.
D. Revenues
1. The City will strive to maintain a diversified and stable revenue base to minimize the impact of economic fluctuation.
2. The City will seek out, apply for, and effectively administer Federal, State, and other grants that address the City’s current operating and capital priorities in accordance with P-FI-0007 – Grant Application and Management Policy.
3. The City will pursue revenue collection and auditing to assure that funds due to the City are accurately received in a timely manner.
4. The City will seek reimbursement for State mandated costs whenever possible.
5. The City will adopt user fees with appropriate levels of cost recovery.
6. User fee studies should be performed and updated every five years to ensure the proper balance of costs and service charges. The City should strive to cover the full cost of providing non-tax and discretionary fee-based service operations except to the extent that City Council approves defined subsidy levels by program area.
7. Operating departments are to review public services to identify and determine those appropriate for fee collection. Recommendations for new fees are to be presented to the City Council for adoption to ensure fees reflect all direct and reasonable indirect costs of providing such services.
8. Enterprise operations, in general, are intended to will be self-supporting.
E. Expenditures
Agenda Item #9.1.
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1. Expenditures are to be budgeted and controlled so as to not exceed estimated revenues plus the approved and planned use of fund balances accumulated in prior years.
2. The City will conduct a mid-year financial status review to determine if projected revenues and expenditures meet target levels. If an operating deficit is projected at year-end, the City should evaluate the need for immediate corrective and/or mitigating actions, including operating or capital expenditure reductions and/or activate the use of established contingency balances. The deferral of essential and scheduled operational expenditures into the following fiscal year or the use of short-term loans and transfers to balance the budget should be avoided.
3. The City implements a formal purchasing system, principles, and guidelines to ensure that expenditure levels are monitored throughout the course of any fiscal year.
F. Cash Management
1. Annually the City’s Investment Policy P-FI-0002 is reviewed and presented to City Council for adoption.
2. Investments for the City are reported at fair value (generally based on quoted market prices). The State Treasurer’s Investment Pool and California Asset Management Program (CAMP) operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.
G. Debt Management
1. The types of debt appropriate for the City include the following: general obligation bonds, bond or grant anticipation notes, lease revenue bonds, certificates of participation and lease-purchase transactions, other revenue bonds and certificates of participation, land-secured financings, such as special tax revenue bonds issued under the Mello-Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes, and tax increment financing to the extent permitted under state law. The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this policy.
2. The City should plan the use of debt in a manner that sustains financial payments at manageable levels.
3. The City will strive to integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of public purposes. Normal wear and tear, upkeep and maintenance of its infrastructure and facilities should be Agenda Item #9.1.
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paid from available operating revenues so as to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear.
4. The purposes for which long term debt may be appropriate include the following: (i) the project to be financed is necessary to provide basic services, (ii) the project to be financed will provide benefit to constituents over multiple years, (iii) total debt does not constitute an unreasonable burden to the City or its taxpayers and ratepayers, (iv) the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring. The City will not issue long-term debt to fund current operations and will seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.
Debt financing should only be used for long-term capital improvement projects with a useful life exceeding the term of the financing and for which the project revenues or specific identified revenue sources are sufficient to service the long-term debt. Debt Financing can be used if the cost of financing is favorable as compared to the use of City investment holdings over the financing term.
5. It is a policy goal of the Issuer to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs. The City will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.
6. Internal control procedures shall include monitoring all forms of debt annually in conjunction with the budget preparation process and report concerns and remedies, if necessary, to the City Council, to ensure that proceeds of debt will be directed to the intended use.
7. The City will diligently comply with and monitor compliance with all bond covenants.
8. The City will cause to be prepared and will timely post to the Electronic Municipal Market Access database (EMMA) all required annual continuing disclosures and, if needed, any material event notices.
9. The City will monitor all debt obligations for ongoing tax compliance and arbitrage reporting.
10. The City will not incur general obligation indebtedness for public improvements which exceed in aggregate 15% of the assessed value of all real and personal property of the City as specified in the California Government Code Section 43605.
11. The City will maintain a minimum net revenue coverage ratio for the Water and Wastewater funds (all annual revenues remaining after operating and Agenda Item #9.1.
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maintenance expenses, net of pass-through grants, to annual debt service requirements net of excess appropriations required for variable rate debt) as required by each funding source.
H. Fund Definitions
1. Governmental Fund Type Definitions
Governmental fund types include the General Fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. The Governmental Accounting Standards Board (GASB) has clarified the definitions of these funds as follows:
a. General Fund – The General Fund should be used to account for and report all financial resources not accounted for and reported in another fund.
b. Special Revenue Funds – Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The restricted or committed proceeds of specific revenue sources should be expected to continue to comprise a substantial portion of the inflows reported in the fund. Other resources (investment earnings and transfers from other funds, for example) also may be reported in the fund if those resources are restricted, committed, or assigned to the specific purpose of the fund.
Governments should discontinue reporting a special revenue fund, and instead report the fund’s remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources. c. Capital Projects Funds – Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments. d. Debt Service Funds – Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest, even if it is being accumulated for further years’ payments. Debt service funds should be used to report resources if legally mandated.
e. Permanent Funds – Permanent funds should be used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the Agenda Item #9.1.
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reporting government’s programs. Permanent funds do not include private-purpose trust funds, which should be used to report situations in which the government is required to use the principal or earnings for the benefit of individuals, private organizations, or other governments.
2. Proprietary Fund Type Definitions
Proprietary fund types include enterprise funds and internal service funds.
GASB has clarified the definitions of these funds as follows:
a. Enterprise Funds – GAAP provide that enterprise funds may be used to report any activity for which a fee is charged to external users for goods or services. Furthermore, a given activity must be accounted for in an enterprise fund if it meets any of the following criteria (in the context of its principal revenue sources):
a. There is outstanding debt that is backed solely by fees and charges;
b. Laws or regulations require that fees and charges be set to recover costs, including capital costs (depreciation or debt service); or
c. There is a pricing policy that fees and charges be set to recover costs, including capital costs (depreciation or debt service). b. Internal Service Funds – Internal service funds are used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government and its component units, or to other governments, on a cost-reimbursement basis.
3. Fiduciary Fund Type Definitions
Generally Accepted Accounting Principles (GAAP) require fiduciary funds to report assets held in trustee or agency capacity for others cannot be used to support the government’s own programs. Fiduciary funds, as reported in GAAP financial statements, never should include resources that can be used to support the government’s own programs. Within the fiduciary funds category, funds that involve a trust agreement that affects the degree of management involvement and the length of time that the resources are held are distinguished from funds that involve only the receipt, temporary investment and remittance of fiduciary resources. Fiduciary fund types include pension, investment trust funds, private-purpose trust funds, and agency funds.
c. Pension Funds – Used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension Agenda Item #9.1.
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plans, defined contribution plans, or other postemployment benefit plans, or other employee benefit plans.
d. Investment Trust Funds – Used to report the external portion of investment pools reported by the sponsoring government. e. Private-purpose Trust Funds – Used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments.
f. Agency Funds – Used to report resources held by the reporting government in a purely custodial capacity.
I. Fund Balance Classifications
1. Governmental Fund Balances
a. Fund balance is defined as the difference between assets and liabilities and in Governmental funds is reported as fund balance.
GASB No. 54 classified fund balances into the following categories:
i. Nonspendable: The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long-term amount of loans and notes receivable, as well as property acquired for resale.
ii. Restricted: The restricted portion of fund balance is restricted to specific purposes. Examples are Gas Tax revenues and grant proceeds.
iii. Committed: The committed portion of fund balance is constrained by the limitations imposed through formal City Council action. Only formal City Council action can remove or modify a previously committed account.
iv. Assigned: The assigned portion of fund balance is established for intended use by either the City Council or its designee, such as the City Manager. No formal City Council action is needed to remove the intended use. GAAP required reserves, such as the Other Post-Employment Benefits (OPEB) reserve, belong to this category.
v. Unassigned: The unassigned portion of fund balance is that remaining after the non-spendable, the restricted, the
committed, and the assigned fund balances are identified and recorded.
Agenda Item #9.1.
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The City of St. Helena will use GASB’s definitions of fund balance for the annual CAFRACFR and for all other financial reporting. For all financial planning purposes, the term Net Position or Fund Balance will be used and will include any portion of the fund balance that is available for appropriation.
Preferred order of use of governmental fund balances:
The City shall strive to use the most restricted fund balances prior to utilizing those that are less restricted. The following order of use reflects this guideline:
a. Non-spendable (if funds become spendable)
b. Restricted
c. Committed
d. Assigned
e. Unassigned
2. Proprietary and Fiduciary Fund Balances (Net Position) a. Fund balance is defined as the difference between assets and liabilities and in Proprietary and Fiduciary fund is reported as net position. GASB No. 63 classified reporting of net position into the following categories:
i. Net Investment in Capital Assets: The net investment in capital assets component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
ii. Restricted for Capital Projects: The restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.
Generally, a liability relates to restricted assets if the asset results from a resource flow that also results in the recognition of a liability or if the liability will be liquidated with restricted assets reported.
iii. Unrestricted: The unrestricted component of net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
J. Fund Balance Levels
Agenda Item #9.1.
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The City of St. Helena has enacted the Fund Balance policies in an effort to ensure financial security through the maintenance of a healthy fund contingency balance that guides the creation, maintenance, and use of resources for financial stabilization purposes. The City’s primary objective is to maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees due to temporary revenue shortfalls or unpredicted one-time expenditures. The City also seeks to maintain the highest possible credit ratings which are dependent, in part, on the City’s maintenance of a healthy fund balance.
1. General Fund
The City’s fiscal goal is to maintain annual expenditure increases at a sustainable growth rate, and to limit expenditures to anticipated revenues in order to maintain a balanced budget. The Council’s directed target is to maintain an unassigned fund balance of thirty percent (30%) of annual operating expenditures for the fiscal year.
2. Buildings, Facilities, & Infrastructure Reserve
Building, facilities, and infrastructure replacement reserve should be established and maintained to provide for the timely replacement of City owned fixed assets. The balance is hereby defined as assigned by the City Council to allow the City to maintain an infrastructure reserve with a target balance equivalent to the projected annual cost of the first year Capital Improvement Plan fund expenditures.
3. Equipment, Technology, & Vehicle Replacement Reserve The balance is hereby defined as assigned by the City Council to allow the City to set aside an appropriate amount of money to property fund equipment, technology, and vehicle replacement. The City shall set aside funding annually in this reserve based on the vehicle, technology, and equipment replacement schedule.
4. Other Benefit Reserves
The City’s policy permits employees to accumulate earned but unused vacation and sick leave benefits which are eligible for payment upon separation from service. Retiring employees have the option of applying 100% of their unused sick leave accrued towards the payment of continuation insurance premiums, to the extent allowed by law. The City should set aside funding annually in this reserve to match the current liabilities.
5. Unassigned Operating Reserve
These balances are hereby defined as unassigned by the City Council to allow the City to weather unpredicted cyclical and rapid downturns in the economy.
These funds would be available for use in such conditions to mitigate negative economic fiscal impacts or State takeaways and can be activated within any one budget cycle through Council action. An economic downturn would entail a projected and/or sudden drop in core revenues (major tax and service Agenda Item #9.1.
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revenue loss) of equal to or greater than 10% (including the impact of inflation) and/or a change in economic parameters (such as interest rates, debt service rates, pension and health rates) that cause a material change in expenditures of 10% or more, or the occurrence of a local natural disaster or unexpected financial claim requiring the immediate use of cash balances.
6. Water and Wastewater Operating Fund Balances
The City should maintain balances in the Water and Wastewater Funds at a level sufficient to accommodate operating and capital needs. City Council’s directed target for the Water Fund is 10-14 months (83%-106%) of annual operating expenditures in cash and the Wastewater Fund 6-8 months (50%- 67%) of annual operating expenditures in cash. These amounts include cash balances in the Water and Wastewater Capital Improvement Project Funds.
Multi-year fee studies for these funds should be updated periodically as a basis for defining the revenue sources necessary to maintain system infrastructure and required service levels. As a result of the periodic fee or master plan studies, adjustments to user charges may be necessary to maintain recommended fund balance levels.
K. Interfund Loans
Interfund loans are the lending of cash from one City fund to another for a specific purpose and with a requirement of repayment. Interfund loans are typically shortterm in nature and constitute the allocation of cash between individual funds for working capital purposes.
Interfund loans are temporary borrowing of cash and may be made for the following reasons:
• To offset timing differences in cash flow.
• To offset timing differences between expenditures and reimbursements, typically associated with grant funding.
• To provide funds for interim financing in conjunction with obtaining long-term financing.
• For short-term borrowing in place of external financing.
Interfund loans are not to be used to solve ongoing structural budget issues or hindering the accomplishment of any function or project for which the lending fund was established. Interfund loans are not to be used from fiscal year to fiscal year as a financing strategy. If a fund has a negative cash balance, a plan for reaching positive cash balance must be presented to City Council. A negative cash balance must be addressed in the fiscal year that the fund reaches negative cash.
Agenda Item #9.1.
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Interfund loan monies may only be used for the purpose identified in the authorizing resolution. Appropriate accounting records will be maintained to reflect the balance of loans in every fund affected by such transactions. A summary of all outstanding interfund loans will be included in the Annual Comprehensive Financial Report (ACFR).
1. Interfund Loan Terms
a. Repayment of an interfund loan shall be within the same fiscal year, unless otherwise stated in the Council Resolution.
b. When required by the lending fund’s restrictions or regulations, interest will be paid by the borrowing fund to the lending fund, during the time the loan is outstanding.
c. The Council must approve interfund loans by resolution. Council approval and the resolution will include the following terms of the loan:
i. Purpose of Interfund Loan
ii. Identification of the source fund
1. Availability of unrestricted funds in the source fund
2. Review of multi-year plans for use of source fund cash
3. Analysis of legal or contractual restrictions
iii. Repayment of Interfund Loan
1. Repayment must have a payment source and funding
stream
2. Specific repayment schedule
3. Interest imposed at a rate equal to at lease investment earnings if loan did not occur (see Section III.K.2)
iv. Other Considerations
1. Feasibility of repayment
2. Interfund Loan Interest
The following guidelines should be used in establishing the rate of interest:
a. Not lower than the “opportunity cost” if the funds were otherwise invested, such as the Local Agency Investment Fune (LAIF) or the California Asset Management Program (CAMP) pooled interest rate. b. Treasury yields or short-term bond yields for a similar term. c. Not higher than the external rate available to the City.
Interest is not required in the following circumstances:
a. The borrowing fund has no independent source of revenue other than the lending fund; or
b. The borrowing fund is normally funded by the lending fund; or Agenda Item #9.1.
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c. The lending fund is the General Fund, which, being unrestricted, can loan interest-free, except to a proprietary fund (i.e., enterprise funds such as water and wastewater).
K.L. Financial Reporting
Budget decisions are of primary concern for the City Council, City Management, the public, and various stakeholders. When considering the budget, staff presents updated projections for revenues and expenditures/expenses and the reports indicate whether prior estimates are tracking with the approved budget.
Additionally, the external annual financial reporting for local governments involves producing the Comprehensive Annual Financial ReportAnnual Comprehensive Financial Report (CAFRACFR) which is audited and produced by an independent, third party CPA/auditor. Throughout the year, the following reports are to be presented to City Council.
1. The City’s accounting and financial reports are to be maintained in conformance with GAAP.
2. Long Range Financial Forecast
a. A Long Range Financial Forecast (LRFF) for the City’s General Fund will be presented to City Council as part of the development of the annual budget.
b. The LRFF provides a current and long-range financial assessment of revenues, expenditures, fund balance, and emergency reserves. The primary objective is to provide the City Council and the community with a financial forecast and identify any significant issues that may need to be addressed in the annual budget development process. c. The LRFF will consist of a baseline forecast, a recession forecast, and any other forecasts deemed necessary.
d. The LRFF is a ten-year forecast.
e. The LRFF will be updated as necessary throughout the fiscal year.
3. Internal Financial Reporting
a. Internal financial reports help City Council, the public, and management to monitor budgetary compliance on a timely basis. b. Internal financial reports often provide more detail on individual departments than does general purpose external financial reporting (Section 4 below) and does not require an independent auditor review and audit.
c. Internal financial reporting for all funds are to be issued on a periodic and timely basis – no less than quarterly and no more than 30 days after the close of the period. The report will provide detailed information for the General, Water, and Wastewater Funds and summary information for all funds will be included as attachments to Agenda Item #9.1.
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the report. The report will include a summary of all checks over $50,000 issued during that quarter.
d. An end of the fiscal year unaudited report will be issued no more than 60 days after the close of Q4 with end of year estimates for revenues and expenditures/expenses for all funds.
e. Periodic reports will compare the adopted budget (Original Budget), adjusted budget (Final Budget), and the year to date actuals (Actual Amounts).
4. External Financial Reporting - Comprehensive Annual Financial ReportAnnual Comprehensive Financial Report (CAFRACFR)
a. An annual financial audit will be performed by an independent public accounting firm familiar with municipal government activities. The independent auditor will issue an audit opinion to be included in the City’s Comprehensive Annual Financial ReportAnnual Comprehensive Financial Report (CAFRACFR). Additionally, the CAFRACFR and Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance will be presented to the City Council. b. The CAFRACFR is a set of financial statements for a state, municipality, or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB).
c. In addition to the General, Water, and Wastewater Funds, the City also accounts for activities in approximately 70 special revenue funds that account for monies received from external parties with restrictions on their respective uses. The audit process ensures that the purposes of the various funds were carried out and the relative authorities to spend were honored.
d. The external auditor prepares financial reports for each fund based on the requirements of the funding source and once all funds are audited, they are accounted for in the financial statements, combining schedules, and notes to the financial statements.
e. Unless extraneous circumstances occur, the City will rotate audit service providers every five years. If an auditor is being retained for longer than five years, the reason must be included in a staff report to City Council at the time of the contract execution or renewal. f. The CAFRACFR will be completed no later than December 31st following the close of the fiscal year.
g. The City is encouraged to submit the Annual CAFRACFR to State and/or national government finance professional organizations (Governmental Finance Officers’ Association’s Certification of Achievement for Excellence in Financial Reporting, California Society of Agenda Item #9.1.
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Municipal Finance Officers CAFRACFR Award) for independent review and evaluation.
L.M. Review and Update
This financial policy will be reviewed periodically and updated, if necessary, to reflect any changing requirements.
Agenda Item #9.1.
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Policy # P-FI-0016
Revision # Revision #3
Implementation Date 2019-09-10
Title:
Financial Policy
Last Update Date 2019-09-10
Approval by City Council September 10, 2019 Date Approved 2018-11-27 I. Purpose, Overview and Scope of this Policy
This document establishes policies of overall financial management, budget development, and fiscal administration for the City of St. Helena. Included herein are statements and principles designed to guide the City in maintaining its financial stability and delivering high-quality services to the public.
Formally adopted financial policies assist elected officials and City staff in the development of fiscal management practices, save time, and provide structure for financial decisions, promote public confidence, enhance transparency, and provide continuity over time. These policies will be updated periodically, but are designed with a long-term perspective and provide the basic framework and road map for addressing a wide variety of financial and economic conditions that the City will encounter. A fiscal policy supports long-term planning and enhances the City’s effectiveness in implementing long-term strategies to deliver efficient public services.
This document provides a structured, central repository for a variety of fiscal policies which are organized into the following categories:
A. General Financial Principles
B. Annual Operating Budget Policy
C. Capital Improvement Program
D. Revenues
E. Expenditures
F. Cash Management
G. Debt Management
H. Fund Definitions
I. Fund Balance Classifications
J. Fund Balance Levels
K. Financial Reporting
L. Review and Update
II. Authority
Updates to this policy require City Council approval.
Agenda Item #9.1.
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III. Policy
A. General Financial Principles
It is the overall policy of the City of St. Helena to build upon a sound conceptual framework to:
1. Manage its financial resources in a responsible and prudent manner.
2. Provide financial information in a relevant, thorough and timely manner, and in a format that effectively communicates financial status to the Council, citizens, and City employees.
3. Establish and maintain prudent fund balance levels.
4. Maintain financial reporting in compliance with current governmental accounting standards.
5. Promote and implement a relevant and strong system of internal financial controls to manage significant risks and monitor the reliability and integrity of financial and operating reporting.
6. Promote constructive and proactive financial decision making that includes, and is responsive to, citizens input and guidance.
7. Integrate long-term operating and capital resources planning into the annual budget process.
8. Allow for uncertainties and maintain a posture of financial flexibility.
9. Develop programs in a manner that support the City’s long-term ability to cover costs and provide the level and quality of service expected by its citizens.
10. Manage debt responsibly.
11. Establish and implement investment policies in accordance with City code and State law.
B. Annual Operating Budget Policy
1. Adoption of Annual Operating Budget
a. Per Municipal Code 2.12.060.B.9, the City Manager supervises the preparation of a detailed, proposed municipal budget and submit the same to the Council on or before May 15th of each year, and to offer their recommendations as to such increases, decreases, cancellations, transfers, or changes in any of the items included in the proposed budget as in their judgment should be made before the adoption of the budget.
b. An annual operating budget will be adopted by the City Council no later than June 30th of each fiscal year. The budget will include appropriations that provide expenditure authority to public officials responsible for operating their respective departments to fulfill obligations to provide public services as delegated by the City Council.
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c. Funds may not be expended for a new fiscal year until the budget for that fiscal year has been adopted by City Council or special provisions have been adopted by the City Council.
d. The budget presented must be balanced, which is when total projected expenditures do not exceed total estimated revenues. If projected expenditures exceed total estimated revenues, , City Council may approve a planned use of accumulated fund balances in prior years for inclusion in the budget.
e. The City should maintain a multi-year financial forecast (Long Range Financial Forecast) that is updated as part of the annual budget development process.
f. One-time revenue sources are not to be relied upon to fund on-going operations.
2. Controlling and Adjusting the Annual Budget
a. The City structures and controls its budget by use of the following funds:
i. General Fund - is the primary operating fund of the City. It accounts for the receipt of property tax, general sales tax, transient occupancy tax, and other general revenues available to finance City operations. The General Fund accounts for all revenues and expenditures that do not fit the criteria to be accounted for in other funds with external restrictions imposed by their respective financing sources.
ii. Special Funds - account for resources externally restricted for use by their respective funding sources, such as grant programs financed by the State and Federal governments.
iii. Enterprise Funds - account for water and wastewater systems, and may be used for fee-based programs if the intention is to recoup almost all City costs through fees or other charges. iv. Internal Service Funds - account for centralized service costs (such as vehicle services made available to all operating departments). Charges from the internal service funds appear as an expenditure in the user department, and as revenue in the central service department.
b. The City’s budget is controlled at the fund level by the City Council. i. The City Council, as representatives of the public, is the sole authority for creating or increasing expenditure appropriations within a fund. The City Council is also the exclusive authority for approving changes in revenue estimates with funds.
c. Department Directors will be held directly responsible and accountable for their budgets as originally adopted by the City Council Agenda Item #9.1.
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or as thereafter revised in accordance with this policy. The level of expenditure control for departments is at the departmental level. d. Departments that operate programs among different funds are limited to the appropriation levels within any one fund. This policy also describes the level of authority needed to amend the adopted budget.
3. Transfers and revisions to the adopted budget:
a. The City Council approves:
i. All increases in appropriations within a fund.
ii. All transfers of appropriations between funds.
iii. All decreases in appropriations, with the exception that the City Manager may direct Department Directors to suspend
expenditures pending Council consideration of decreases in appropriations needed to respond to fiscal emergency.
b. The City Manager approves:
i. The City Manager may make budget transfers between
departments or programs as long as those changes do not increase overall appropriations within any one given fund.
Transfers between funds, overall increases in fund
appropriations, and overall increases in project budgets can only be made through City Council action.
c. Department Directors may authorize the transfer of appropriations within a department, except transfers: (1) that would purport an increase in the number of regular personnel, and (2) that would decrease appropriations for capital outlay.
d. Finance Department:
i. The Finance Department is responsible for providing forms and instructions for requesting appropriation adjustments, and for analyzing and recommending adjustments to the City Manager.
The Finance Department will record approved budgets and adjustments into the City’s financial system.
ii. The Finance Department will ensure that the City’s Annual Comprehensive Financial Report (ACFR) includes a comparison of actual expenditures against the final budget, as amended and adjusted under the authorities of this policy.
4. Operating expenditure appropriations not spent during the fiscal year lapse at year-end, except for:
a. Encumbrances or commitments, as in the form of finalized purchase orders made during the fiscal year that have not been completed at year-end.
Agenda Item #9.1.
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b. Appropriations for capital improvement projects and ongoing grants with a life-cycle beyond one year.
5. Governmental funds use the modified accrual basis of accounting while proprietary and fiduciary fund types are budgeted on a full accrual basis of accounting. The ACFR presents City’s finances on a Generally Accepted Accounting Principles (GAAP) basis and the City’s budget is prepared in conformance with these standards.
6. The City’s budget must comply with the annual determination of the City’s appropriations limit (GANN Limit) calculated in accordance with Article XIIB of the Constitution of the State of California and the City shall adopt an annual resolution to this effect.
C. Capital Improvement Program
1. The City will develop and maintain a five-year Capital Improvement Program (CIP) to be updated annually in conjunction with the operating budget. The CIP should reflect the current and changing needs of the community as well as enhance the community’s quality of life.
a. Note: The five-year CIP is not a budget commitment, and its acceptance by City Council does not provide officials the authority to spend. The plan is an expression of recognized needs, and a tool for use in budgeting.
2. All projects within the CIP are to be tracked systematically and reports should clearly indicate funding provided, expenditures incurred, and required future funding by project.
3. Capital improvements that specifically benefit a select group of users and/or are fee-for-service based are to be financed/funded through user fees, service charges, special assessments and taxes, or development impact fees.
4. Funding and Financing
a. Funding refers to the stream of public agency revenue that pays for or offsets the cost of an asset or service or supports repayment of debt that finances the asset.
b. Financing refers to the method of paying for an asset or service, including debt financing.
5. A Capital improvement budget should systematically identify potential funding sources and financing options and match those resources to the capital needs identified in the Capital Improvement Program. It should also make the difficult decision regarding which capital needs the agency will fund, when it will fund them, and from what resource.
6. Capital improvements that specifically benefit a fee-for-service enterprise operation (such as Water/Wastewater) are to be financed/funded through the service fees generated within that operation and fund, except in the event Agenda Item #9.1.
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the voters of the City approve taxes or assessments for the purpose of financing and/or funding such capital improvements, in which case revenues from the voter approved taxes or assessments may also be used to finance and/or fund those capital improvements. Fees charged for enterprise operations should be supported by periodic updates to the rate study prepared for those fees in accordance the California Constitution and all applicable laws.
a. Notwithstanding the above paragraph, the city recognizes there may be emergency situations where enterprise operation capital improvements may need additional funding outside of the service fee structure, which may include direct borrowing and issuance of revenue bonds, and outside voter authorized initiatives. For the completion of critical enterprise capital projects, City Council may authorize use of General Fund unassigned fund balance (See Section III.C.7) in the following situations:
i. Life and safety emergencies
ii. Project completion is required (via mandate, cease and desist order, etc) and the current rate structure does not support the full cost to complete project.
7. The following shall be taken into consideration when using General Fund unassigned fund balance that specifically benefits a fee-for-service enterprise operation (as noted in Section III.C.6.):
a. The City Council shall find that an emergency or extraordinary need exists to justify the use of these funds. Funds shall be appropriated only after the City Manager and Administrative Services Director have prepared and presented to the City Council an analysis of the emergency or extraordinary need that addressed the nature of the proposed expenditure(s) and any associated revenue requirements in subsequent years.
b. Use of fund balance does not cause the General Fund to fall below the reserve level identified in Section III.J.1.
i. If situation arises where reserve level may/will fall below the level identified in Section III.J.1., the City Manager and Administrative Services Director shall provide a funding plan to the City Council, including proposed source(s) of funding and a timeline to bring the balance of the General Fund reserve to the level identified in Section III.J.1.
c. Although use of unassigned General Fund monies are considered unrestricted and may be used for any municipal purpose, the use of unassigned fund balance to an enterprise fund will normally be Agenda Item #9.1.
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considered an interfund loan (see Section III.K) unless Council otherwise finds and documents an exigent need.
8. Transfers of resources to the CIP fund will be evaluated on an annual basis dependent upon the existence of available surplus dollars.
9. The City should strive to maximize the use of capital grants and State assistance in funding capital improvements before utilizing general revenue sources.
10. Funding Capital Improvements
The CIP uses a variety of funding sources to support projects. This section outlines some of the more common municipal funding sources used for funding capital improvements.
a. Pay-as-you Go (Cash or Pay-Go)
Debt financing is not always the most cost-effective way to purchase assets. Many times, the costs of interest and financing outweigh the costs of paying with cash, if that is an option. Pay-GO avoids these additional costs, but the agency must pay the full cost of the asset at the outset. Improvements typically made through the Pay-Go program tend to be smaller in scale and/or short-term improvements.
Additionally Pay-Go can be used to provide an additional funding source and offset long-term borrowing and used in conjunction with borrowing.
b. Long-Term Financing Methods
i. General Obligation Bonds (GO Bond)
• Permissible Projects – Acquisition and improvement
of public property and facilities.
• Approval Procedure – Issuer resolution and
ordinance; two-thirds voter approval.
• Source of Repayment – Ad Valorem property taxes
paid by owners of taxable property in the jurisdiction. ii. Special Assessment Bonds
• Permissible Projects – Acquisition of property and
improvement of infrastructure and additional
facilities of benefit to the property that is charged.
• Approval Procedure – Engineers report, weighted
majority protect procedure.
• Source of Repayment – Assessments on the
property/fees limited special benefit to the property
that is being charged.
iii. Special Tax (e.g. Mello-Roos) Bonds
• Permissible Projects – Acquisition and improvement
of public property and facilities.
Agenda Item #9.1.
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• Approval Procedure – Two-thirds voter approval or –
where there are fewer than 12 registered voters – by
landowners in the proportion to land owned within
the Community Facilities District.
• Source of Repayment – Special tax on property within
community facilities district.
iv. Certificates of Participation
• Permissible Projects – Unrestricted use.
• Approval Procedure – Resolution of governing board
approving lease or installment agreement.
• Source of Repayment – Lease or installment sale
agreement paid from General Fund (lease) or
special/enterprise (installment sale) revenues.
v. Revenue Bonds
• Permissible Projects – Acquisition and improvement
of revenue-producing public property and facilities.
• Approval Procedure – Issuer resolution and in some
instances public vote.
• Source of Repayment – Service charges and other
fees paid by users of project or services.
vi. Mark-Roos JPA Bonds
• Permissible Projects – Acquisition and improvement
of public property, facilities, and/or equipment.
• Approval Procedure – Resolution of governing boards
of JPA and participating entities.
• Source of Repayment – Taxes, user fees, lease or
installment payments, from local agencies to JPA.
c. Development Impact Fees
Development Impact Fees are collected to mitigate the impact of new development in the community. The amount of the impact fee collected is based on a portion of the financing needed for identified public facilities. Property being developed is assessed the fee(s) at the time the building permit is issued.
d. Donations and Developer Funding
Projects may be funded by contributions and/or donations from private sources such as residents, developers, private organizations, and businesses. Contributions by developers and vendors may be reimbursed with City funds in future years through mechanisms such as a development agreement.
e. Enterprise Funds
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Enterprise Funds account for specific services that are funded directly by fees and charges to users. These funds are intended to be fully self-supporting and are not typically subsidized by any general revenue or taxes. Within each Enterprise Fund, budgets are developed which are sufficient to fund current year operations and maintenance expense, as well as provide for current and future years’ upgrade, replacement, and expansion-related capital construction requirements.
f. Grants
Some projects are entirely or partially funded by grants and reimbursements from the State and federal government and other agencies. The receipts of certain grants and reimbursements typically follow the award of contracts.
D. Revenues
1. The City will strive to maintain a diversified and stable revenue base to minimize the impact of economic fluctuation.
2. The City will seek out, apply for, and effectively administer Federal, State, and other grants that address the City’s current operating and capital priorities in accordance with P-FI-0007 – Grant Application and Management Policy.
3. The City will pursue revenue collection and auditing to assure that funds due to the City are accurately received in a timely manner.
4. The City will seek reimbursement for State mandated costs whenever possible.
5. The City will adopt user fees with appropriate levels of cost recovery.
6. User fee studies should be performed and updated every five years to ensure the proper balance of costs and service charges. The City should strive to cover the full cost of providing non-tax and discretionary fee-based service operations except to the extent that City Council approves defined subsidy levels by program area.
7. Operating departments are to review public services to identify and determine those appropriate for fee collection. Recommendations for new fees are to be presented to the City Council for adoption to ensure fees reflect all direct and reasonable indirect costs of providing such services.
8. Enterprise operations, in general, are intended to be self-supporting.
E. Expenditures
1. Expenditures are to be budgeted and controlled so as to not exceed estimated revenues plus the approved and planned use of fund balances accumulated in prior years.
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2. The City will conduct a mid-year financial status review to determine if projected revenues and expenditures meet target levels. If an operating deficit is projected at year-end, the City should evaluate the need for immediate corrective and/or mitigating actions, including operating or capital expenditure reductions and/or activate the use of established contingency balances. The deferral of essential and scheduled operational expenditures into the following fiscal year or the use of short-term loans and transfers to balance the budget should be avoided.
3. The City implements a formal purchasing system, principles, and guidelines to ensure that expenditure levels are monitored throughout the course of any fiscal year.
F. Cash Management
1. Annually the City’s Investment Policy P-FI-0002 is reviewed and presented to City Council for adoption.
2. Investments for the City are reported at fair value (generally based on quoted market prices). The State Treasurer’s Investment Pool and California Asset Management Program (CAMP) operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.
G. Debt Management
1. The types of debt appropriate for the City include the following: general obligation bonds, bond or grant anticipation notes, lease revenue bonds, certificates of participation and lease-purchase transactions, other revenue bonds and certificates of participation, land-secured financings, such as special tax revenue bonds issued under the Mello-Roos Community Facilities Act of 1982, as amended, and limited obligation bonds issued under applicable assessment statutes, and tax increment financing to the extent permitted under state law. The City may from time to time find that other forms of debt would be beneficial to further its public purposes and may approve such debt without an amendment of this policy.
2. The City should plan the use of debt in a manner that sustains financial payments at manageable levels.
3. The City will strive to integrate its debt issuances with the goals of its capital improvement program by timing the issuance of debt to ensure that projects are available when needed in furtherance of public purposes. Normal wear and tear, upkeep and maintenance of its infrastructure and facilities should be paid from available operating revenues so as to avoid the use of debt to fund infrastructure and facilities improvements that are the result of normal wear and tear.
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4. The purposes for which long term debt may be appropriate include the following: (i) the project to be financed is necessary to provide basic services, (ii) the project to be financed will provide benefit to constituents over multiple years, (iii) total debt does not constitute an unreasonable burden to the City or its taxpayers and ratepayers, (iv) the debt is used to refinance outstanding debt in order to produce debt service savings or to realize the benefits of a debt restructuring. The City will not issue long-term debt to fund current operations and will seek to avoid the use of debt to fund infrastructure and facilities improvements in circumstances when the sole purpose of such debt financing is to reduce annual budgetary expenditures.
Debt financing should only be used for long-term capital improvement projects with a useful life exceeding the term of the financing and for which the project revenues or specific identified revenue sources are sufficient to service the long-term debt. Debt Financing can be used if the cost of financing is favorable as compared to the use of City investment holdings over the financing term.
5. It is a policy goal of the Issuer to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs. The City will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.
6. Internal control procedures shall include monitoring all forms of debt annually in conjunction with the budget preparation process and report concerns and remedies, if necessary, to the City Council, to ensure that proceeds of debt will be directed to the intended use.
7. The City will diligently comply with and monitor compliance with all bond covenants.
8. The City will cause to be prepared and will timely post to the Electronic Municipal Market Access database (EMMA) all required annual continuing disclosures and, if needed, any material event notices.
9. The City will monitor all debt obligations for ongoing tax compliance and arbitrage reporting.
10. The City will not incur general obligation indebtedness for public improvements which exceed in aggregate 15% of the assessed value of all real and personal property of the City as specified in the California Government Code Section 43605.
11. The City will maintain a minimum net revenue coverage ratio for the Water and Wastewater funds (all annual revenues remaining after operating and maintenance expenses, net of pass-through grants, to annual debt service requirements net of excess appropriations required for variable rate debt) as required by each funding source.
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H. Fund Definitions
1. Governmental Fund Type Definitions
Governmental fund types include the General Fund, special revenue funds, capital projects funds, debt service funds, and permanent funds. The Governmental Accounting Standards Board (GASB) has clarified the definitions of these funds as follows:
a. General Fund – The General Fund should be used to account for and report all financial resources not accounted for and reported in another fund.
b. Special Revenue Funds – Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The restricted or committed proceeds of specific revenue sources should be expected to continue to comprise a substantial portion of the inflows reported in the fund. Other resources (investment earnings and transfers from other funds, for example) also may be reported in the fund if those resources are restricted, committed, or assigned to the specific purpose of the fund.
Governments should discontinue reporting a special revenue fund, and instead report the fund’s remaining resources in the general fund, if the government no longer expects that a substantial portion of the inflows will derive from restricted or committed revenue sources. c. Capital Projects Funds – Capital projects funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments. d. Debt Service Funds – Debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest, even if it is being accumulated for further years’ payments. Debt service funds should be used to report resources if legally mandated.
e. Permanent Funds – Permanent funds should be used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s programs. Permanent funds do not include private-purpose trust funds, which should be used to report situations in which the government is required to use the principal or earnings Agenda Item #9.1.
Policy
Financial Policy
City of St. Helena
Administrative Policy
Finance
P-FI-0016
for the benefit of individuals, private organizations, or other governments.
2. Proprietary Fund Type Definitions
Proprietary fund types include enterprise funds and internal service funds.
GASB has clarified the definitions of these funds as follows:
a. Enterprise Funds – GAAP provide that enterprise funds may be used to report any activity for which a fee is charged to external users for goods or services. Furthermore, a given activity must be accounted for in an enterprise fund if it meets any of the following criteria (in the context of its principal revenue sources):
a. There is outstanding debt that is backed solely by fees and charges;
b. Laws or regulations require that fees and charges be set to recover costs, including capital costs (depreciation or debt service); or
c. There is a pricing policy that fees and charges be set to recover costs, including capital costs (depreciation or debt service). b. Internal Service Funds – Internal service funds are used to report any activity that provides goods or services to other funds, departments, or agencies of the primary government and its component units, or to other governments, on a cost-reimbursement basis.
3. Fiduciary Fund Type Definitions
Generally Accepted Accounting Principles (GAAP) require fiduciary funds to report assets held in trustee or agency capacity for others cannot be used to support the government’s own programs. Fiduciary funds, as reported in GAAP financial statements, never should include resources that can be used to support the government’s own programs. Within the fiduciary funds category, funds that involve a trust agreement that affects the degree of management involvement and the length of time that the resources are held are distinguished from funds that involve only the receipt, temporary investment and remittance of fiduciary resources. Fiduciary fund types include pension, investment trust funds, private-purpose trust funds, and agency funds.
c. Pension Funds – Used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, or other postemployment benefit plans, or other employee benefit plans.
d. Investment Trust Funds – Used to report the external portion of investment pools reported by the sponsoring government.
Agenda Item #9.1.
Policy
Financial Policy
City of St. Helena
Administrative Policy
Finance
P-FI-0016
e. Private-purpose Trust Funds – Used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments.
f. Agency Funds – Used to report resources held by the reporting government in a purely custodial capacity.
I. Fund Balance Classifications
1. Governmental Fund Balances
a. Fund balance is defined as the difference between assets and liabilities and in Governmental funds is reported as fund balance.
GASB No. 54 classified fund balances into the following categories:
i. Nonspendable: The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example, inventories and prepaid amounts. It also includes the long-term amount of loans and notes receivable, as well as property acquired for resale.
ii. Restricted: The restricted portion of fund balance is restricted to specific purposes. Examples are Gas Tax revenues and grant proceeds.
iii. Committed: The committed portion of fund balance is constrained by the limitations imposed through formal City Council action. Only formal City Council action can remove or modify a previously committed account.
iv. Assigned: The assigned portion of fund balance is established for intended use by either the City Council or its designee, such as the City Manager. No formal City Council action is needed to remove the intended use. GAAP required reserves, such as the Other Post-Employment Benefits (OPEB) reserve, belong to this category.
v. Unassigned: The unassigned portion of fund balance is that remaining after the non-spendable, the restricted, the
committed, and the assigned fund balances are identified and recorded.
The City of St. Helena will use GASB’s definitions of fund balance for the annual ACFR and for all other financial reporting. For all financial planning purposes, the term Net Position or Fund Balance will be used and will include any portion of the fund balance that is available for appropriation.
Agenda Item #9.1.
Policy
Financial Policy
City of St. Helena
Administrative Policy
Finance
P-FI-0016
Preferred order of use of governmental fund balances:
The City shall strive to use the most restricted fund balances prior to utilizing those that are less restricted. The following order of use reflects this guideline:
a. Non-spendable (if funds become spendable)
b. Restricted
c. Committed
d. Assigned
e. Unassigned
2. Proprietary and Fiduciary Fund Balances (Net Position) a. Fund balance is defined as the difference between assets and liabilities and in Proprietary and Fiduciary fund is reported as net position. GASB No. 63 classified reporting of net position into the following categories:
i. Net Investment in Capital Assets: The net investment in capital assets component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
ii. Restricted for Capital Projects: The restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.
Generally, a liability relates to restricted assets if the asset results from a resource flow that also results in the recognition of a liability or if the liability will be liquidated with restricted assets reported.
iii. Unrestricted: The unrestricted component of net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
J. Fund Balance Levels
The City of St. Helena has enacted the Fund Balance policies in an effort to ensure financial security through the maintenance of a healthy fund contingency balance that guides the creation, maintenance, and use of resources for financial stabilization purposes. The City’s primary objective is to maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees due to Agenda Item #9.1.
Policy
Financial Policy
City of St. Helena
Administrative Policy
Finance
P-FI-0016
temporary revenue shortfalls or unpredicted one-time expenditures. The City also seeks to maintain the highest possible credit ratings which are dependent, in part, on the City’s maintenance of a healthy fund balance.
1. General Fund
The City’s fiscal goal is to maintain annual expenditure increases at a sustainable growth rate, and to limit expenditures to anticipated revenues in order to maintain a balanced budget. The Council’s directed target is to maintain an unassigned fund balance of thirty percent (30%) of annual operating expenditures for the fiscal year.
2. Buildings, Facilities, & Infrastructure Reserve
Building, facilities, and infrastructure replacement reserve should be established and maintained to provide for the timely replacement of City owned fixed assets. The balance is hereby defined as assigned by the City Council to allow the City to maintain an infrastructure reserve with a target balance equivalent to the projected annual cost of the first year Capital Improvement Plan fund expenditures.
3. Equipment, Technology, & Vehicle Replacement Reserve The balance is hereby defined as assigned by the City Council to allow the City to set aside an appropriate amount of money to property fund equipment, technology, and vehicle replacement. The City shall set aside funding annually in this reserve based on the vehicle, technology, and equipment replacement schedule.
4. Other Benefit Reserves
The City’s policy permits employees to accumulate earned but unused vacation and sick leave benefits which are eligible for payment upon separation from service. Retiring employees have the option of applying 100% of their unused sick leave accrued towards the payment of continuation insurance premiums, to the extent allowed by law. The City should set aside funding annually in this reserve to match the current liabilities.
5. Unassigned Operating Reserve
These balances are hereby defined as unassigned by the City Council to allow the City to weather unpredicted cyclical and rapid downturns in the economy.
These funds would be available for use in such conditions to mitigate negative economic fiscal impacts or State takeaways and can be activated within any one budget cycle through Council action. An economic downturn would entail a projected and/or sudden drop in core revenues (major tax and service revenue loss) of equal to or greater than 10% (including the impact of inflation) and/or a change in economic parameters (such as interest rates, debt service rates, pension and health rates) that cause a material change in expenditures of 10% or more, or the occurrence of a local natural disaster or unexpected financial claim requiring the immediate use of cash balances.
Agenda Item #9.1.
Policy
Financial Policy
City of St. Helena
Administrative Policy
Finance
P-FI-0016
6. Water and Wastewater Operating Fund Balances
The City should maintain balances in the Water and Wastewater Funds at a level sufficient to accommodate operating and capital needs. City Council’s directed target for the Water Fund is 10-14 months (83%-106%) of annual operating expenditures in cash and the Wastewater Fund 6-8 months (50%- 67%) of annual operating expenditures in cash. These amounts include cash balances in the Water and Wastewater Capital Improvement Project Funds.
Multi-year fee studies for these funds should be updated periodically as a basis for defining the revenue sources necessary to maintain system infrastructure and required service levels. As a result of the periodic fee or master plan studies, adjustments to user charges may be necessary to maintain recommended fund balance levels.
K. Interfund Loans
Interfund loans are the lending of cash from one City fund to another for a specific purpose and with a requirement of repayment. Interfund loans are typically shortterm in nature and constitute the allocation of cash between individual funds for working capital purposes.
Interfund loans are temporary borrowing of cash and may be made for the following reasons:
• To offset timing differences in cash flow.
• To offset timing differences between expenditures and reimbursements, typically associated with grant funding.
• To provide funds for interim financing in conjunction with obtaining long-term financing.
• For short-term borrowing in place of external financing.
Interfund loans are not to be used to solve ongoing structural budget issues or hindering the accomplishment of any function or project for which the lending fund was established. Interfund loans are not to be used from fiscal year to fiscal year as a financing strategy. If a fund has a negative cash balance, a plan for reaching positive cash balance must be presented to City Council. A negative cash balance must be addressed in the fiscal year that the fund reaches negative cash.
Interfund loan monies may only be used for the purpose identified in the authorizing resolution. Appropriate accounting records will be maintained to reflect the balance of loans in every fund affected by such transactions. A summary of all outstanding interfund loans will be included in the Annual Comprehensive Financial Report (ACFR).
Agenda Item #9.1.
Policy
Financial Policy
City of St. Helena
Administrative Policy
Finance
P-FI-0016
1. Interfund Loan Terms
a. Repayment of an interfund loan shall be within the same fiscal year, unless otherwise stated in the Council Resolution.
b. When required by the lending fund’s restrictions or regulations, interest will be paid by the borrowing fund to the lending fund, during the time the loan is outstanding.
c. The Council must approve interfund loans by resolution. Council approval and the resolution will include the following terms of the loan:
i. Purpose of Interfund Loan
ii. Identification of the source fund
1. Availability of unrestricted funds in the source fund
2. Review of multi-year plans for use of source fund cash
3. Analysis of legal or contractual restrictions
iii. Repayment of Interfund Loan
1. Repayment must have a payment source and funding
stream
2. Specific repayment schedule
3. Interest imposed at a rate equal to at lease investment earnings if loan did not occur (see Section III.K.2)
iv. Other Considerations
1. Feasibility of repayment
2. Interfund Loan Interest
The following guidelines should be used in establishing the rate of interest:
a. Not lower than the “opportunity cost” if the funds were otherwise invested, such as the Local Agency Investment Fune (LAIF) or the California Asset Management Program (CAMP) pooled interest rate. b. Treasury yields or short-term bond yields for a similar term. c. Not higher than the external rate available to the City.
Interest is not required in the following circumstances:
a. The borrowing fund has no independent source of revenue other than the lending fund; or
b. The borrowing fund is normally funded by the lending fund; or c. The lending fund is the General Fund, which, being unrestricted, can loan interest-free, except to a proprietary fund (i.e., enterprise funds such as water and wastewater).
L. Financial Reporting
Agenda Item #9.1.
Policy
Financial Policy
City of St. Helena
Administrative Policy
Finance
P-FI-0016
Budget decisions are of primary concern for the City Council, City Management, the public, and various stakeholders. When considering the budget, staff presents updated projections for revenues and expenditures/expenses and the reports indicate whether prior estimates are tracking with the approved budget.
Additionally, the external annual financial reporting for local governments involves producing the Annual Comprehensive Financial Report (ACFR) which is audited and produced by an independent, third party CPA/auditor. Throughout the year, the following reports are to be presented to City Council.
1. The City’s accounting and financial reports are to be maintained in conformance with GAAP.
2. Long Range Financial Forecast
a. A Long Range Financial Forecast (LRFF) for the City’s General Fund will be presented to City Council as part of the development of the annual budget.
b. The LRFF provides a current and long-range financial assessment of revenues, expenditures, fund balance, and emergency reserves. The primary objective is to provide the City Council and the community with a financial forecast and identify any significant issues that may need to be addressed in the annual budget development process. c. The LRFF will consist of a baseline forecast, a recession forecast, and any other forecasts deemed necessary.
d. The LRFF is a ten-year forecast.
e. The LRFF will be updated as necessary throughout the fiscal year.
3. Internal Financial Reporting
a. Internal financial reports help City Council, the public, and management to monitor budgetary compliance on a timely basis. b. Internal financial reports often provide more detail on individual departments than does general purpose external financial reporting (Section 4 below) and does not require an independent auditor review and audit.
c. Internal financial reporting for all funds are to be issued on a periodic and timely basis – no less than quarterly and no more than 30 days after the close of the period. The report will provide detailed information for the General, Water, and Wastewater Funds and summary information for all funds will be included as attachments to the report. The report will include a summary of all checks over $50,000 issued during that quarter.
d. An end of the fiscal year unaudited report will be issued no more than 60 days after the close of Q4 with end of year estimates for revenues and expenditures/expenses for all funds.
Agenda Item #9.1.
Policy
Financial Policy
City of St. Helena
Administrative Policy
Finance
P-FI-0016
e. Periodic reports will compare the adopted budget (Original Budget), adjusted budget (Final Budget), and the year to date actuals (Actual Amounts).
4. External Financial Reporting - Annual Comprehensive Financial Report (ACFR) a. An annual financial audit will be performed by an independent public accounting firm familiar with municipal government activities. The independent auditor will issue an audit opinion to be included in the City’s Annual Comprehensive Financial Report (ACFR). Additionally, the ACFR and Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance will be presented to the City Council.
b. The ACFR is a set of financial statements for a state, municipality, or other governmental entity that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB).
c. In addition to the General, Water, and Wastewater Funds, the City also accounts for activities in approximately 70 special revenue funds that account for monies received from external parties with restrictions on their respective uses. The audit process ensures that the purposes of the various funds were carried out and the relative authorities to spend were honored.
d. The external auditor prepares financial reports for each fund based on the requirements of the funding source and once all funds are audited, they are accounted for in the financial statements, combining schedules, and notes to the financial statements.
e. Unless extraneous circumstances occur, the City will rotate audit service providers every five years. If an auditor is being retained for longer than five years, the reason must be included in a staff report to City Council at the time of the contract execution or renewal. f. The ACFR will be completed no later than December 31st following the close of the fiscal year.
g. The City is encouraged to submit the Annual ACFR to State and/or national government finance professional organizations
(Governmental Finance Officers’ Association’s Certification of Achievement for Excellence in Financial Reporting, California Society of Municipal Finance Officers ACFR Award) for independent review and evaluation.
M. Review and Update
This financial policy will be reviewed periodically and updated, if necessary, to reflect any changing requirements.
Agenda Item #9.1.
CITY OF ST. HELENA
RESOLUTION NO. 2022-__
Resolution approving Revision No. 3 to City of St. Helena City Council Policy P-FI-0016 Financial Policy and repealing and rescinding Resolution 2019-109 and any previous policies or administrative memoranda which are inconsistent with City Council Policy P-FI-0016, Revision No. 3.
RECITALS
A. The City recognizes that fiscal policies and procedures are necessary for efficient, effective, and proper accounting of City spending; and
B. On November 27, 2018, City Council adopted City Council Policy P-FI-0016 Financial Policy via Resolution 2018-161; and
C. On February 12, 2019, City Council adopted Policy P-FI-0016 Revision No. 1 Financial Policy via Resolution 2019-12 updating Section G. Debt Management to ensure compliance with SB 1029; and
D. On September 10, 2019, City Council adopted P-FI-0016 Revision No. 2 Financial Policy via Resolution 2019-109 updating Section B. Annual Operating Budget to add a clear definition of, “balanced budget” and Section K. Financial Reporting has been updated to include a requirement that all checks over $50,000 are report to City Council during the quarterly report; and
E. On October 19, 2021, the Governmental Accounting Standards Board (GASB) issued a pronouncement that changes the name of the most extensive report prepared following it standards to the Annual Comprehensive Financial Report, or ACFR; and
F. During the past few months City Council has had numerous discussions regarding the General Obligation Bond which was placed on the June 7, 2022 ballot for consideration. A portion of the discussion included a review of the City's current Financial Policy - P-FI-0016 as it pertains to issuance of debt and Capital Improvement Programs; and
G. Based on feedback received on January 31, 2022, staff presented a revised policy for Council consideration on February 8, 2022. As stated at the February 8, 2022 meeting, staff consulted the City's Municipal Financial Advisor and City Attorney and the policy, in its current form, does allow debt to be issued for critical infrastructure, including for enterprise funds, and does allow utilization of the General Fund for emergency repairs; and
Agenda Item #9.1.
H. At this meeting, it was the consensus of Council and staff that the language contained in the policy can be further refined; and
I. On June 28, 2022, City staff brought City Council Policy P-FI-0016 Financial Policy back to the City Council for consideration and adoption; and J. To avoid any inconsistencies with policy application, it is necessary to repeal and rescind any previous policies and procedures which conflict with City Council Policy P-FI-0016 Financial Policy, Revision No. 2.
RESOLUTION
NOW, THEREFORE, the City Council of the City of St. Helena resolves as follows:
1. Approves Revision No. 3 to City of St. Helena City Council Policy P-FI-0016 Financial Policy; and
2. Repeals and rescinds any previous policies or administrative memoranda which are inconsistent with City Council Policy P-FI-0016 Financial Policy, Revision No. 3.
Approved at a Regular Meeting of the St. Helena City Council on June 28, 2022, by the following vote:
Mayor Ellsworth:
Vice Mayor Dohring:
Councilmember Chouteau:
Councilmember Hall:
Councilmember Hardy:
APPROVED: ATTEST:
________________________ ________________________
Geoff Ellsworth, Mayor Cindy Tzafopoulos, City Clerk
Agenda Item #9.1.
Financial Policy Update
June 28, 2022
By:
April Mitts, Assistant City Manager
1 Agenda Item #9.1.
Objectives
2 1. Adopt recommended Policy updates
2. Provide direction to staff for future policy
considerations
Agenda Item #9.1.
Background
3 • Council discussion regarding current Policy as it
relates to issuance of debt for CIP’s
• February 8, 2022 – a draft Policy revision was
brought to Council for review
• City Council provided the following direction:
• Include clarifying language to Policy
• Look at best practices for Enterprise Fund debt issuance • Develop criteria to utilize General Fund resources
Agenda Item #9.1.
Financial Policy – Best Practices
4 • Review of Debt Issuance and Financial Policies:
• Financial and debt issuance policies from other agencies • Government Finance Officers Association (GFOA) best practices • California Debt and Investment Advisory Commission (CDIAC) Findings: No financial policies specifically addressed
utilization of GO Bond proceeds for Enterprise Fund assets Agenda Item #9.1.
Financial Policy – Recommendations
5 Based on Information Reviewed – Staff Recommends:
• Addition of policy language for Interfund Loans
• Section III.C.6.a (Capital Improvement Program)
• Section III.C.7. (Capital Improvement Program)
• Addition of Section III.K. (Interfund Loans)
• Addition of clarifying language to Section III.C. (Capital Improvement Program)
• Addition of a Funding Capital Improvements Section within Section III.C.10 • Administrative update for Compliance with GASB Statement No. 98 • Annual Comprehensive Financial Report (ACFR)
Agenda Item #9.1.
Other Policy Considerations
6 Identified Policies:
• General Fund Reserve Levels
• Use of One-Time Revenues
• Use of Fund Balance in Excess of Established Reserves • Capital Facilities and Improvement Policies*
• Capital Improvement Program (CIP) Policies*
*May be considered a separate policy initiated through Public Works Agenda Item #9.1.
Council Action
Approval of a Resolution Approving
Revision #3 to Policy: P-FI-0016
Financial Policy
7 Agenda Item #9.1.
Report to the City Council
Regular City Council - 28 Jun 2022
Agenda Section: OLD BUSINESS
Subject: Consideration and Proposed Approval of the following resolutions related to the Napa Valley College Tenant
Improvements C22-0001
1. (1) Approving Murray Building, Inc, of Sonoma
California, as the Lowest Responsive and Responsible
Bidder; (2) Authorizing the City Manager to Execute,
Enter into and Implement athe Contract by and between
the City and Murray Building, Inc. for Project No. C22- 0001 Napa Valley College Tenant Improvements in the
Amount of $1,167,379.00; and (3) Authorizing the
Director of Public Works to Approve Change Orders
Not-to-Exceed 10% of the Contract Amount.
2. Approving a Professional Services Agreement with
MarinIT for Information Technology Upgrades and
Relocation Services as part of the Napa Valley College
Tenant Improvements (Project C22-001) in an Amount
Not-to-Exceed $219,259.86 and Authorizing the City
Manager to Execute the Agreement.
3. Approving a Five-year Lease Agreement with Vesta
Modular for the St. Helena Police Department Portable
Locker Room for an Amount Not-to-Exceed $423,956;
FY 22/23 - $116,117; FY 23/24 - $58,013, FY 24/25 -
$58,013, and FY 25/26 - $58,013, FY 26/27 - $133,798 and Authorizing the City Manager to Execute the
Agreement.
4. Approving Amendment No. 4 to Professional Services
Agreement with Noll & Tam Architects STH Contract:
FY 2021-071 in the amount of $44,923 for Construction
Administration for a Total Contract Amount Not-toExceed $236,483 and Authorizing the City Manager to Execute the Agreement.
5. Approving a Professional Service Agreement with
Greystone West Company for Construction
Management Services for the Napa Valley College
Agenda Item #9.2.
Tenant Improvement Project in an Amount Not-toExceed $70,566.73 and Authorizing the City Manager to Execute the Agreement.
CEQA
Determination:
CEQA varies for each action
Prepared By: Preya Nixon, Asst. to the City Manager
Reviewed By: April Mitts, Assistant City Manager
Approved By: James C. McCann, Interim City Manager
BACKGROUND
Recognizing the deterioration of the City’s assets, the City Council set in motion a series of studies, working committees, and reports to categorize assets, provide costs estimates for replacement/repair, and develop funding strategies for the replacement/repair of assets. In particular, the work of the SHAPE Committee and the Financing Civic Infrastructure Taskforce provided resources and recommendations that still have merit and may provide to be direction for future or permanent efforts for municipal faculties.
In December of 2019, a near fire broke out in City Hall located at 1480 Main Street, resulting in smoke damage throughout the building. On January 6, 2020, a Special City Council Meeting was held to discuss the cost and anticipated timing of repairs necessary for City Hall (1480 Main Street) and the City's then Public Works Administration Building (1572 Railroad Avenue). Direction was provided to the City Manager to not move staff back into the current City Hall location (1480 Main Street), make minor repairs to the Public Works Administration Building, and explore other alternatives for relocation of City staff. Since March of 2020, Interim City Hall, located at 1572 Railroad Avenue, has housed the following departments: City Administration, Administrative Services, Public Works, and the Planning and Building Department.
In 2020, two joint statements were made between the Napa Valley College (NVC) and the City of St. Helena. The first statement, issued on January 15, 2020, announced the City and NVC had recently started exploring opportunities for the NVC Upper Valley Campus (UVC) to collaborate with community organizations that may make use of extra space on the campus, enhance value as a community resource, and contribute to the mission of the College. The second statement, issued on September 4, 2020, noted that, in conjunction with a recent NVC community forum, surveys, and college stakeholder discussions, representatives from the NVC Board of Trustees, designated members of the St. Helena City Council, and their respective administrators, held meetings to evaluate opportunities for strategic collaboration. As a result of these discussions, representatives of both entities announced a commitment to further strengthen and expand their Agenda Item #9.2.
collaboration, and reached an agreement to negotiate a lease with the City for use of a portion of the property.
On May 25, 2021, the City Council approved a Resolution 2021-73 authorizing the City Manager, or designee, to execute a lease for a portion of the Napa Valley Community College District Upper Valley Campus for space to serve as a City Hall and Police facility.
The initial term of the lease is for five years with the option to extend the lease for an additional two-year term. Tenant Improvements (TI's) are necessary in order to facilitate the specific needs of the City.
On April 13, 2021, the City entered into a contract with Noll and Tam Architects to assist with the design of Phase I of the Napa Valley College Tenant Improvements.
On August 6, 2021, a formal lease agreement between the City and the Napa Valley Community College Upper Valley Campus was executed.
On January 24, 2022, the Division of State Architect (DSA) officially approved the proposed plans and specifications for the tenant improvements. This is a requirement as the tenant improvements are occurring on a community college site, and are therefore subject to the review and approval of the DSA.
On January 26, 2022, the City entered into a Professional Services Agreement with Greystone West Company to perform construction management in the planning and bidding stage of the project. This contract was executed under the City Manager's signing authority.
On May 10, 2022, the City Council Approved Resolution 2022-36 approving the plans and specifications for the Napa Valley College Tenant Improvements, Project No. C22- 0001 and authorizing advertisement for bids.
DISCUSSION
Proposed Tenant Improvements:
The project consists of nonstructural Tenant Improvements (TIs) to create office space and Police Department facilities on the existing campus. Improvements will include accessibility in accordance with Americans with Disability Act (ADA), security, and telecommunications upgrades that are necessary for City and Police Administration. The City will be making improvements in the "A Building" only. There are one and one-half classrooms not in the project scope and will be used by the College.
The TI's will allow for City Administration (City Manager, City Clerk, Administrative Services, Planning and Building, Public Works Administration, and Police) to be housed in one building. Currently, Human Resources, the Police Department, and City Administration are working in separate locations.
Agenda Item #9.2.
The TI's will allow for greater collaboration across departments and ease of access for customers coming in to pay a water bill or to have a meeting involving multiple departments. Additionally, the lease agreement allows the City to rent by the hour a large classroom from the College (when not in use by the College). It is anticipated that this space will be used for City Board and Commission meetings as well as larger staff meetings. There will also be a dedicated conference room that will serve as a community space for smaller meetings. The outdoor courtyard will serve as a space for both City and College events and meetings.
While the modifications to the building are fairly straightforward to address general city administrative office needs, the Police Department has special requirements and addressing those has complicated improvements and has extended the City's timeline and added substantial costs to the project. These items are: enhanced security including bulletproofing panels that must be installed, general security for the entire building, enhanced IT needs to meet legal requirements of Police Department servers, and a separate portable building that will serve as a locker/shower room for police officers. The Police Department needs redundant power in the event of a power outage for 9- 11/Dispatch. The City applied for grant funds through the Hazard Mitigation Grant Program (HMGP) to fund the cost of the generator necessary for this project, with a estimated 25% City match.
Tenant Improvements to be completed by the General Contractor A Notice to Contractors inviting construction bids was posted on May 25, 2022, and was published online (i.e. City website and Blueprints Express), in the newspaper, and sent to construction exchanges. There were 7 registered planholders and other companies.
On Wednesday, June 15, 2022, at 2:00 PM the City Clerk received four (4) sealed bids which were read aloud publicly. The bids received are listed below:
Contractor Bid
Murray Building, Inc. $1,167,379.00
Kirby Construction Company, Inc. $1,524,660.00
CWS Construction Group, Inc. $1,685,000.00
Ridgeview Builders, Inc. $1,789,000.00
Murray Building, Inc. has a valid California Contractor’s License (#646709) with a ‘B’ - General Building and an ‘A’- General Engineering Contractor License and a DIR Registration Number (1000002078). Their License and Registration are current and active. Their proposed surety company, Philadelphia Indemnity Insurance Company, is licensed to do business in California and is rated A++ (Excellent) by A.M. Best Rating Center. Their recent and past experience indicates that they are financially capable and possess the resources to perform on a project of this magnitude. Their bid documents appear to be in order with all required submissions. It is the opinion of the Construction Agenda Item #9.2.
Management Company, Greystone West, that the City should accept the bid of Murray Building, Inc. for the NVC-TI Project No. C22-0001 in the amount of $1,167,379.00.
The Project Plans and Specifications remain available for review at the Public Works Department at 1572 Railroad Avenue and at www.blueprintexpress.com/sthelena, but will be removed from the site once the project is awarded.
Information Technology Upgrades and Relocation Services The City of St. Helena has utilized MarinIT since 2012 for its information technology needs including, but not limited to:
• Onsite and remove information technology (IT) service, support, and maintenance • Managed services such as anti-virus/malware, mobile device management, MS Office 365, and data backup services
• Special projects dependent on individual department and City needs - evaluated on an annual basis
• Security awareness, training, and scans
• Migration of hosted services
At the June 14, 2022 Regular City Council meeting, the City Council approved a one year agreement with MarinIT for continued Informational Technology Services for FY 2022/23.
A critical component of Napa Valley College Tenant Improvements (NVC-TI) includes ensuring that the City has the right Information Technology (IT) infrastructure to meet the operational needs of both the City Administration and the Police Department. During the planning phase of the NVC-TI project, MarinIT conducted Cable Discovery at the college, and determined that the existing cable would not meet the demands of the network requirements for City and Police Staff. This contract was awarded under the City Manager's signing authority.
In order to ensure that the City has the right infrastructure and to facilitate the move to the NVC, MarinIT has prepared the following proposal to meet the City's IT needs in the following areas related to IT Upgrades and Relocation Services:
Item Cost
Cabling Materials and Labor $102,540.50
Relocation Services/Labor $45,000.00
Network Hardware $40,844.50
Software/Misc. Licenses $2,169.69
Contingencies $24,000.00
Total $219,259.86
Below is a general description of what is occurring in each item. For a detailed description, please refer to the attached proposal.
Agenda Item #9.2.
Cabling:
As noted, the existing cable needs to be upgraded to a higher level category. MarinIT will be conducting the new cable install, which includes removing existing cabling and furnishing and installing the new cable, upgrading the Main Distribution Frame (MDF) and then Intermediate Distribution Frame (IDF) rooms. MarinIT will also test all cables.
Relocation and Project Management:
This includes full move support for both City Administration and Police Department for the relocation of infrastructure. This includes the breakdown of all IT items at 1572 Railroad and the current Police Department, and set up at the NVC. The proposed agreement outlines staffing requirements for the move from MarinIT and will be billed on actual hours used.
Network Hardware:
Because the NVC Site is not set up for the City's network, new network hardware is required to be installed.
Software/Misc. Licenses:
Software license are required for the new network being installed.
Contingencies:
Separate contingencies are set for the cabling portion and the move portion.
Contingencies will only be utilized if required.
As outlined in this proposal, MarinIT will be part of the project team for the NVC-TI, and will participate in weekly construction meetings to coordinate IT work with the General Contractor and Security contractor.
In accordance with SHMC Title 3, Article 4, Section 3.04.320 Award of professional service contracts based on competence, City staff has determined MarinIT has the appropriate information technology experience to ensure that cabling for the Napa Valley College Tenant Improvement project is performed in compliance with City requirements and standards and the project plans and specifications.
Portable Unit for the Police Department Locker Room
The existing building space the NVC does not include a locker room/shower facilities that is necessary for the Police Department. The City has identified a company that will provide a portable locker/shower room, which will include the required security measures. The City intends to lease this locker room for five years with the potential to add on two additional years, consistent with the lease of the NVC.
The locker room will include male and female sides with two showers and restrooms one each side, and locker facilities. This portable will also include an ADA ramp and will Agenda Item #9.2.
adhere to all ADA standards as required. To see a full description of the proposed portable locker room, please see the attached document.
Because this is a stand alone portable unit, it was not required to be reviewed by the DSA.
Below is a breakdown of the lease for the proposed Portable Locker Room:
Year Amount
1 $116,117 (includes rent + installation)
2-4 $58,013 (per year)
5 $133,798* (includes rent + removal)
*Assumes removal in Year 5.
Staff has joined a Joint Powers Authority (JPA) to lease the locker room which has allowed the City to "piggyback" onto an existing written purchase contracts through cooperative purchasing with other agencies in accordance with SHMC Title 2, Article 4, Section 3.04.150.
Construction Administration Services
The City entered into a Professional Services Agreement with Noll and Tam Architects in April of 2021 to provide services related to the Napa Valley College move and are the Architect of Record (AOR) for this project.
Now that the project will enter into the construction phase, the AOR provides Construction Administration that includes the following:
• Submittal reviews
• Responding to contractor design questions (RFI's)
• Coordination of required DSA forms, including Submittal of DSA form for completion of project (Form DSA‐6)
• Attendance at construction administration meetings
• In-person site visits for punch list items
• The allowance of additional site meetings per structural, mechanical, electrical and civil engineers as necessary.
Staff is recommending the approval of Construction Administration Services by Noll and Tam, the AOR, in a not-to-exceed amount of $44,923.
In accordance with SHMC Title 3, Article 4, Section 3.04.320 Award of professional service contracts based on competence, City staff has determined Noll & Tam continues to have the appropriate experience to ensure the Napa Valley College Tenant Improvement project is performed in compliance with City requirements and standards and the project plans and specifications.
Agenda Item #9.2.
Construction Management Services
On January 26, 2022, the City entered into a Professional Services Agreement with Greystone West Company to perform pre-construction management services in the planning and bidding stage of the project. This contract was executed under the City Manager's signing authority.
Greystone West has performed pre-construction services for this project and have demonstrated a level of experience, competence, and staffing necessary to perform the work satisfactorily and was asked to provide a proposal for the construction management phase of this project.
In accordance with SHMC Title 3, Article 4, Section 3.04.320 Award of professional service contracts based on competence, City staff has determined Greystone West has the appropriate construction management and experience working with the Division of State Architect (DSA) required to ensure that construction of the Napa Valley College Tenant Improvement project is performed in compliance with City requirements and standards and the project plans and specifications.
The construction management services will include a pre-construction meeting, preconstruction site visit and documentation, project start-up, daily field inspections and documentation, progress meetings, status reports and documentation, construction management, cost and schedule management, public relations and notifications, postconstruction meeting, and project closeout.
Staff is recommending the approval of Construction Management Services with Greystone West in a not-to-exceed amount of $70,566,73.
Napa Valley College Tenant Improvements Connection the City Council Adopted Three-Year Workplan:
This item is listed on the City Council's adopted workplan as "Coordinate tenant improvements and relocation of City Hall and Police operations to Napa Valley College Upper Valley Campus".
CEQA Analysis:
City Staff have reviewed project scope and determined that this project qualifies for Categorical Exemption under California Environmental Quality Act (CEQA). Staff determination has been reviewed by the City Attorney who has concurred. Staff will file a Notice of Exemption under CEQA with the Clerk's Office of Napa County.
FISCAL IMPACT
The total fiscal impact of approval of the five resolutions is $2,043,089 for a total estimated project cost of $2,277,144. The total project costs includes the estimated 25% grant match for the generator if the grant is awarded, Year 1 of the rental of the Police Agenda Item #9.2.
Department portable locker room (subsequent annual costs will be included in the operations budget), and an additional contingency of $56,000 for unanticipated expenses.
Cost estimates for the NVC move are broken down into five categories: Design, Construction, Construction Management/IOR, Information Technology, and Miscellaneous Costs. A summary of the original budget, updated cost estimates, and funding is provided in Table 1.
Table 1 - Estimated Costs and Funding Appropriations
EXPENDITURE SUMMARY Original Budget Updated Budget
6/15
Design $226,855 $226,855
Construction $1,062,039 $1,538,130
Construction Management/IOR $172,000 $135,000
Information Technology $234,209 $234,209
Miscellaneous Costs $142,950 $142,950
TOTAL EXPENSES $1,838,054 $2,277,144
FUNDING SUMMARY
CURRENT APPROPRIATIONS $730,000 $730,000
EQUIP. REPLACEMENT FUND $170,555 $170,555
RENT SAVINGS FY 2021/22 $198,816 $198,816
ADA Reimbursement from NVC (per
agreement) $54,000 $77,774
FY 2022/23 Appropriation $600,000 $1,100,000
TOTAL FUNDING $1,753,371 $2,277,145
As noted in the FY 2022-23 Budget adoption staff report, the City hosted the bid opening for the NVC TI project. The lowest bid came in at $1.17 million, which was approximately $460,000 higher than anticipated. The additional appropriation has been included in the FY 2022-23 draft budget presented to City Council.
RECOMMENDED ACTION
Staff recommends City Council Approves the Attached Resolutions.
ATTACHMENTS
Attachment 1: Resolution - Murray Building Inc. for Tenant Improvements Attachment 2: Resolution - MarinIT for IT Upgrades/Relocation Attachment 3: Resolution - Vesta Modular for Police Locker Room Attachment 4: Resolution - Noll and Tam Amendment #4 for Construction Administration
Attachment 5: Resolution - Greystone West for Construction Management Attachment 6: Recommendation to Award from Greystone West for Murray Building Inc. for Tenant Improvements
Agenda Item #9.2.
Attachment 7: MarinIT PSA with Scope for IT Upgrades/Relocation Attachment 8: Quote from Vesta Modular for Police Locker Room Attachment 9: Noll and Tam Amendment #4 with Scope for Construction Administration Attachment 10: Greystone West PSA with Scope for Construction Management Agenda Item #9.2.
CITY OF ST. HELENA
RESOLUTION NO. 2022-_____
(1) Approving Murray Building, Inc, of Sonoma California, As The Lowest Responsive And Responsible Bidder; (2) Authorizing The City Manager To Execute, Enter Into And Implement The Contract By And Between The City And Murray Building, Inc. for Project No. C22-0001 Napa Valley College Tenant Improvements In The Amount of One Million One Hundred Sixty-Seven Thousand Three Hundred Seventy-Nine Dollars and 00/100 ($1,167,379.00); and (3) Authorizing The Director of Public Works to Approve Change Orders Not to Exceed 10% of the Contract Amount.
RECITALS
A. It has been determined that current City Hall and Police Department facilities have exceeded their functional life, and;
B. On May 25, 2021, the City Council approved a Resolution 2021-73 authorizing the City Manager, or designee, to execute a lease for a portion of the Napa Valley Community College District Upper Valley Campus for space to serve as a City Hall and Police facility, and;
C. On April 13, 2021, the City entered into a contract with Noll and Tam Architects to assist with the design of Phase I of the Napa Valley College Tenant Improvements.
D. On August 6, 2021, a formal lease agreement between the City and the Napa Valley Community College Upper Valley Campus was executed, and; E. On January 24, 2022, the Division of State Architect (DSA) officially approved the proposed plans and specifications for the tenant improvements, and; F. On January 26, 2022, the City entered into a Professional Services Agreement with Greystone West Company to perform construction management in the planning and bidding stage of the project, and;
G. On May 10, 2022 City Council approved the plans and specifications for the Napa Valley College Tenant Improvement Project, Project No. C22-0001 (“Project”), found the Project categorically exempt from the California Environmental Quality Act (“CEQA”), and authorized advertisement for bids; and H. On May 25, 2022, a Notice to Contractors inviting construction bids was posted and was also published online (i.e. City website and Blueprints Express), in the newspaper, and sent to the construction exchanges; and
Agenda Item #9.2.
I. On June 15, 2022, at 2:00 PM the City Clerk received four (4) sealed bids which were read aloud publicly and Murray Building, Inc. of Sonoma, California, submitted the lowest bid of $1,167,379.00; and
J. Murray Building, Inc. is the lowest responsible, responsive bid, and holds a valid Class A General Engineering and Class B General Building Contractor’s License No. 646709 in the State of California, with no enforcement actions listed. Their license expires on 10/3122; and
K. Subsequent review of Murray Building, Inc. bid by City staff indicates that Murray Building, Inc. is a responsible bidder and their bid was in fact responsive, therefore, be it:
RESOLUTION
NOW, THEREFORE, The City Council of the City of St. Helena, hereby resolves as follows:
1. On May 10, 2022, the City Council adopted a resolution “[a]pproving the plans and specifications for the Napa Valley College Tenant Improvement Project, Project No. C22- 0001 and authorizing advertisement for bids.” In addition to approving the Project, the City Council determined at its May 10, 2022 meeting that the Project is categorically exempt from CEQA under the Class 1 exemption set forth in State CEQA Guidelines section 15301, which applies to projects involving the minor alteration of structures and facilities. Here, the Proejct involves the minor alteration of a portion of the Napa Valley Community College District Upper Valley Campus. Specifically, the Project consists of nonstructural tenant improvements to create office space and Police Department facilities on the existing campus. Improvements will include accessibility in accordance with the Americans with Disabilities Act (“ADA”); telecommunications upgrades; enhanced security including bulletproofing panels; a separate portable building of less than 2,500 feet that will serve as a locker/shower room for police officers, and a generator. These non-structural tenant improvements fall squarely within the Class 1 exemption. For all these reasons, the Project is categorically exempt from CEQA.
2. That the City Council approves and awards the Contract by and between the City of St. Helena and Murray Building, Inc. for Project No C22-0001 – Napa Valley College Tenant Improvements in the amount of One Million One Hundred Sixty-Seven Thousand Three Hundred Seventy-Nine Dollars and 00/100 ($1,167,379.00), in the form attached hereto as Exhibit A and incorporated herein by this reference.;
3. That the City Council authorizes the City Manager to execute, enter into and implement the Contract in the amount of $1,167,379.00 with Murray Building, Inc. for Project No. C22-0001 – Napa Valley College Tenant Improvements
4. That the City Council delegates to and authorizes the Public Works Director to approve change orders not to exceed 10% of the contract price.
Agenda Item #9.2.
Approved at a Regular Meeting of the St. Helena City Council on June 28, 2022, by the following vote:
Mayor Ellsworth: __________
Vice Mayor Dohring: __________
Councilmember Anna Chouteau: __________
Councilmember Lester Hardy: __________
Councilmember Eric Hall: __________
APPROVED: ATTEST:
________________________ ________________________
Geoff Ellsworth, Mayor Cindy Tzafopoulos, City Clerk
Agenda Item #9.2.
CITY OF ST. HELENA
RESOLUTION NO. 2022-
Consideration and Proposed Approval of Award of Contract to MarinIT for Information Technology Upgrades and Relocation Services as part of the Napa Valley College Tenant Improvements (Project C22-001) in a not to exceed amount of $219,259.86
RECITALS
A. In 2012, an informal solicitation of proposals was conducted for outsourced Information Technology services; and
B. Marin IT was selected from this process; and
C. The City has contracted with MarinIT for ten years to provide 24/7 network support as well as workstation/desktop maintenance; and D. On May 25, 2021, the City Council approved a Resolution 2021-73 authorizing the City Manager, or designee, to execute a lease for a portion of the Napa Valley Community College District Upper Valley Campus for space to serve as a City Hall and Police facility and;
E. MarinIT has conducted cable discovery work at the NVC and; F. It has been determined that the existing IT infrastructure requires upgrades to meet the operational needs of the City Administration and Police Department and;
G. Relocation Services and Network Buildout is required and; H. In accordance with SHMC Title 3, Article 4, Section 3.04.320 Award of professional service contracts based on competence, City staff has determined MarinIT has the appropriate information technology experience to ensure that cabling for the Napa Valley College Tenant Improvement project is performed in compliance with City requirements and standards and the project plans and specifications.
RESOLUTION
The City Council of the City of St. Helena hereby resolves as follows:
Agenda Item #9.2.
1. Approval of this resolution is CEQA Categorically Exempt under Section 15301; and
2. The City Council approves the Agreement with MarinIT for a total not to exceed amount of $219,259.86; and
3. The City Council authorizes the City Manager to execute the agreement on behalf of the City.
Approved at a Regular Meeting of the St. Helena City Council on June 28, 2022, by the following vote:
Mayor Ellsworth: __________
Vice Mayor Dohring: __________
Councilmember Chouteau: __________
Councilmember Hall: __________
Councilmember Hardy: __________
APPROVED: ATTEST:
________________________ ________________________
Geoff Ellsworth, Mayor Cindy Tzafopoulous, City Clerk
Agenda Item #9.2.
CITY OF ST. HELENA
RESOLUTION NO. 2022-
Authorizing the City Manager to execute a five (5) year lease agreement with Vesta Modular for the St. Helena Police Department Portable Locker Room for an amount not to exceed $423,956; FY 22/23 - $116,117; FY 23/24 - $58,013, FY 24/25 - $58,013, and FY 25/26 - $58,013, FY 26/27 - $133,798
A. It has been determined that current City Hall and Police Department facilities have exceeded their functional life, and;
B. On May 25, 2021, the City Council approved a Resolution 2021-73 authorizing the City Manager, or designee, to execute a lease for a portion of the Napa Valley Community College District Upper Valley Campus for space to serve as a City Hall and Police facility, and;
C. On August 6, 2021, a formal lease agreement between the City and the Napa Valley Community College Upper Valley Campus was executed, and; D. The existing NVC Building does not include locker room facilities for the Police Department, and;
E. The purchase will be made in conformance with St. Helena Municipal Code Section
3.04.150, "Cooperative purchasing with other agencies”;
RESOLUTION
The City Council of the City of St. Helena hereby resolves as follows:
1. Approval of this resolution is CEQA Categorically Exempt under Section 15301; and
2. Authorizing the City Manager to execute a five (5) year lease agreement with Vesta Modular for the St. Helena Police Department Portable Locker Room for an amount not to exceed $423,956; FY 22/23 - $116,117; FY 23/24 - $58,013, FY 24/25 - $58,013, and FY 25/26 - $58,013, FY 26/27 - $133,798 Approved at a Regular Meeting of the St. Helena City Council on June 28, 2022 by the following vote:
Mayor Ellsworth: __________
Vice Mayor Dohring: __________
Agenda Item #9.2.
Councilmember Chouteau: __________
Councilmember Hardy: __________
Councilmember Hall: __________
APPROVED: ATTEST:
__________________________ __________________________
Geoff Ellsworth, Mayor Cindy Tzafopoulous, City Clerk
Agenda Item #9.2.
CITY OF ST. HELENA
RESOLUTION NO. 2022-_____
AUTHORIZING: (1) THE CITY MANAGER TO EXECUTE AMENDMENT No. 4 TO
PROFESSIONAL SERVICES AGREEMENT WITH NOLL & TAM ARCHITECTS IN THE AMOUNT OF $44,923 TO STH CONTRACT NO: FY 2021-071 FOR PHASE I OF THE NAPA VALLEY COLLEGE TENANT IMPROVEMENTS AT THE CITY OF ST. HELENA FOR A TOTAL CONTRACT AMOUNT NOT-TO-EXCEED $236,483
RECITALS
A. On April 13, 2021, the City and Consultant entered into the Agreement for Consultant to provide professional services in connection with the project described tenant improvements at the Napa Valley College Upper Campus for Phase I; and B. On May 25, 2021, the City Council approved resolution authorizing the City Manager or designees to execute a lease regarding a portion of the Napa Valley Community College District Upper Valley Campus; and
C. Based on the required identified tenant improvements, the City and Consultant desired to amend the Agreement with the Consultant to provide additional fees for permitting the Division of State Architect; and
D. Permitting for the Division of the State Architect requires full engineering consultant drawings and construction administraton protocols that were not included in the original scope of work with Noll and Tam Architects; and;
E. Amendment No. 1 was for an additional $117,622 for a total not-to-exceed amount of $158,997; and;
F. Additional scope of work has been idenfied that require mechanical and electrical engineering necessary for Division of State Architect Review; and G. Amendment No. 2 was for an additional $8,580 for a total not-to-exceed amount of $167,577 and;
H. Additional work required during the permit review process with DSA has been identified.
I. Amendment 3 is for an additional $23,983 for a total not-to-exceed amount of $191,560, and;
J. Additional work is required for Construction Administration, including communication with DSA and;
K. Amendment 4 is for an additional $44,923 for a total not-to-exceed amount of $236,483 Agenda Item #9.2.
L. In accordance with SHMC Title 3, Article 4, Section 3.04.320 Award of professional service contracts based on competence, City staff has determined Noll & Tam continues to have the appropriate experience to ensure the Napa Valley College Tenant Improvement project is performed in compliance with City requirements and standards and the project plans and specifications.
RESOLUTION
NOW, THEREFORE, The City Council of the City of St. Helena, hereby resolves as follows:
1. Approves Amendment No. 4 to STH Contract: FY2021-71 with Toll and Tam Architects for an additional $44,923 for a total not-to-exceed amount of $236,483; and
2. Authorizing the City Manager to execute Amendment No. 4.
Approved at a Regular Meeting of the St. Helena City Council on June 28, 2022, by the following vote:
Mayor Ellsworth: __________
Vice Mayor Dohring: __________
Councilmember Anna Chouteau: __________
Councilmember Lester Hardy: __________
Councilmember Eric Hall: __________
APPROVED: ATTEST:
________________________ ________________________
Geoff Ellsworth, Mayor Cindy Tzafopoulos, City Clerk
Agenda Item #9.2.
CITY OF ST. HELENA
RESOLUTION NO. 2022-
Approving a Professional Service Agreement with Greystone West Company for Construction Management Services for the Napa Valley College Tenant Improvement Project in an amount not to exceed $70,566.73 and authorizing the City Manager to execute the agreement.
A. On June 28, 2022, the City of St. Helena Council (1) awarded the Napa Valley College Tenant Improvement Project C22-0001 to Murray Building, Inc. in the amount of $1,167,379.00, (2) authorized the City Manager to execute a construction contract with Murray Builders Inc., (3) authorized the Director of Public Works to approve change orders not to exceed 10% of the contract account; and B. The City of St. Helena requires construction management and inspection services in order to produce a high-quality, cost-effective project; and C. Greystone West was asked to provide a proposal for construction management services. Greystone West previously performed pre-construction management and services for the Napa Valley College Tenant Improvement Project and are familiar with the Division of State Architect; and
D. In accordance with SHMC Title 3, Article 4, Section 3.04.320 Award of professional service contracts based on competence, City staff has determined Greystone West has the appropriate construction management and experience working with the Division of State Architect (DSA) required to ensure that construction of the Napa Valley College Tenant Improvement project is performed in compliance with City requirements and standards and the project plans and specifications.
RESOLUTION
The City Council of the City of St. Helena hereby resolves as follows:
1. Approving a Professional Service Agreement with Greystone West for the Napa Valley College Tenant Improvement Project in an amount not to exceed $70,566.73 and authorizing the City Manager to execute the agreement.
Approved at a Regular Meeting of the St. Helena City Council on June 28, 2022 by the following vote:
Mayor Ellsworth: __________
Agenda Item #9.2.
Vice Mayor Dohring: __________
Councilmember Chouteau: __________
Councilmember Hardy: __________
Councilmember Hall: __________
APPROVED: ATTEST:
__________________________ __________________________
Geoff Ellsworth, Mayor Cindy Tzafopoulous, City Clerk
Agenda Item #9.2.
621 West Spain Street • Sonoma, CA 95476 • www.greystonewest.com Phone 707.933.0624 • Fax 707.996.8390
June 17, 2022
Ms. Preya B. Nixon
Assistant to the City Manager
City of St. Helena
1572 Railroad Avenue
St. Helena, CA 94574
RE: Napa Valley College Upper Campus St. Helena Tenant Improvements Project No. C22-0001 In our capacity as the City’s Program Manager, we have completed a review of the Bid Proposals submitted by all prospective bidders of the Napa Valley College Upper Campus St. Helena Tenant Improvements Project No. C22-0001 that was bid on Wednesday, June 15, 2022, at 2:00 pm. In our review, we found that Murray Building, Inc. submitted the lowest responsive and responsible bid for the subject project.
1) Murray Building, Inc. has a valid California Contractor’s License (#646709) with a ‘B’ - General Building and an ‘A’- General Engineering Contractor License and a DIR Registration Number (1000002078). Their License and Registration are current and active. 2) Their proposed surety company, Philadelphia Indemnity Insurance Company, is licensed to do business in California and is rated A++ (Excellent) by A.M. Best Rating Center. 3) Their recent and past experience indicates that they are financially capable and possess the resources to perform on a project of this magnitude.
4) Their bid documents appear to be in order with all required submissions. 5) After publishing this project in the Napa Valley Register and sending the notices to planrooms and providing outreach to known contractors, four (4) bids were received:
CONTRACTOR GRAND TOTAL BID
Murray Building, Inc. $1,167,379.00
Kirby Construction Company, Inc. $1,524,660.08
CWS Construction Group, Inc. $1,685,000.00
Ridgeview Builders, Inc. $1,789,000.00
Agenda Item #9.2.
621 West Spain Street • Sonoma, CA 95476 • www.greystonewest.com Phone 707.933.0624 • Fax 707.996.8390
In conclusion, based upon the above, it is our recommendation that the District award the Napa Valley College Upper Campus St. Helena Tenant Improvements Project No. C22-0001 contract for the amount of One Million One Hundred Sixty-Seven Thousand Three Hundred Seventy-Nine Dollars ($1,167,379.00) to Murray Building, Inc.
Please do not hesitate to contact Greystone West Company with any questions or concerns.
Sincerely,
John Dilena
Senior Project Manager
Greystone West Company
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT
AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT, made and entered into on June 28, 2022 by and between the City of St. Helena, located in the County of Napa, State of California (City), and MarinIT (Consultant).
RECITALS:
A. City desires to employ Consultant to furnish professional services in connection with the project described as Information Technology Upgrades and Relocation Services for the Napa Valley College Tenant Improvement Project.
B. Consultant has represented that Consultant has the necessary expertise, experience, and qualifications to perform the required duties.
NOW, THEREFORE, in consideration of the mutual premises, covenants, and conditions herein contained, the parties agree as follows:
SECTION 1 – BASIC SERVICES
Consultant agrees to perform the services set forth in Exhibit A, “Scope of Services” and made part of this Agreement.
SECTION 2 – ADDITIONAL SERVICES
Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement that are in addition to or outside of those set forth in this Agreement or Exhibit A, “Scope of Services” (the “Services”), unless such additional Services and compensation are authorized in advance and in writing by the City Council or City Manager of the City.
SECTION 3 – TIME FOR COMPLETION
The time for completion of Services shall be as identified in Exhibit A, “Scope of Services”. The parties expressly agree that time is of the essence in the performance of this Agreement.
SECTION 4 – COMPENSATION AND METHOD OF PAYMENT
A. Subject to any limitations set forth in this Agreement, City agrees to pay consultant the amount specified in Exhibit A, “Scope of Services” attached hereto and made a part hereof. Total compensation shall not exceed $219,259.86 unless additional compensation is approved in accordance with Section 2.
B. Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories if applicable: labor (by sub-category), travel, materials, equipment, supplies, subconsultant contracts, and miscellaneous expenses. Each original invoice furnished shall include the expenses incurred during the preceding month, the cumulative Agreement amount, Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT and the amount remaining on the Agreement. City shall independently review each invoice submitted to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. If no charges or expenses are disputed, the invoice shall be approved, and City will use its best efforts to cause Consultant to be paid within 30 days of receipt of invoice. If the City disputes any charges or expenses, the City will return the original invoice to Consultant for correction and resubmission. If the City reasonably determines, in its sole judgment, that the invoiced charges and expenses exceed the value of the Services performed to date and that it is probable that the Agreement will not be completed satisfactorily within the contract price, City may retain all or a portion of the invoiced charges and expenses.
Within thirty (30) days of satisfactory completion of the project, City shall pay the retained amount, if any, to Consultant.
C. Payment to the Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.
SECTION 5 – STANDARD OF PERFORMANCE
A. Consultant represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent and professional manner. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services described herein. In meeting its obligations under this Agreement, Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons in the same or similar geographical area engaged in providing Services similar to those required of Consultant under this Agreement.
B. In order to induce City to enter into this Agreement, Consultant represents that it is duly organized, existing and in good standing under applicable state law; Consultant is licensed to perform all aspects of the Services; Consultant will employ only persons and Subconsultants with all required licenses and certifications; that Consultant is duly qualified to conduct business in the State; that Consultant has duly authorized the execution, delivery and performance of this Agreement and the Services to be performed herein; and that the Agreement does not violate or create a default under any instrument, agreement, order or decree binding on Consultant.
SECTION 6 – INSPECTION AND FINAL ACCEPTANCE
City may inspect and accept or reject any of Consultant’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Consultant’s work within sixty (60) days after submitted to City, unless the parties mutually agree to extend such deadline. City shall reject work by a timely written explanation, otherwise Consultant’s work shall be deemed to have been accepted. City’s acceptance shall be conclusive as to such work except with respect to latent defects and fraud. Acceptance of any of Consultant’s work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, the sections pertaining to indemnification and insurance.
SECTION 7 – INSURANCE REQUIRED
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT Consultant 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 Consultant, its agents, representatives, or employees, as indicated:
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).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
3. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.
B. Minimum Limits of Insurance. Consultant shall maintain limits no less than:
1. General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations, as applicable. If Commercial General Liability Insurance or other form with a 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 or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $2,000,000 per accident for bodily injury and property damage.
3. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.
C. Professional Liability Insurance. When Consultant under this Agreement is duly licensed under California Business and Professions Code as an architect, landscape architect, environmental engineer or other professional engineer, or land surveyor (“design professional”), Consultant shall maintain at least $2,000,000 of professional liability insurance. When Consultant is not a design professional, Consultant shall maintain at least $1,000,000 of professional liability insurance combined single limit for each occurrence, insuring against professional errors and omissions in the Services performed by Consultant under this Agreement, including, without limitation, claims for negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advise arising out of, resulting from, or in connection with Services performed by Consultant under this Agreement.
D. Cyber Liability Insurance.
1. Cyber Liability Insurance with limits not less than $1,000,000 per claim.
2. Coverage shall be sufficient broad to respond to the duties and obligations as is undertaken by Consultant 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.
3. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties, and credit monitoring expenses with limits sufficient to respond to these obligations.
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT E. Excess Limits. If Consultant maintains higher limits than the minimums shown above, City requires and shall be entitled to coverage for the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
F. Primary Coverage. For any claims related to this contract the Consultants insurance coverage shall be primary insurance as respects to 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 Consultants insurance and shall not contribute with it.
G. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions of $25,000 or greater must be declared to and approved by the City.
H. 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 agent, officers, officials, employees, and volunteers are to be covered as additional insured as respects: liability arising out of work or operations performed by the Consultant or Consultant’s subconsultants; or automobile owned, leased, hired or borrowed by the Consultant.
2. For any claims related to Consultant’s conduct while performing the work of this project, the Consultant’s insurance coverage shall be primary insurance as respects the City, its agents, officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its agents, officers, officials, employees or volunteers shall be excess of the Consultant’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 cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City.
4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subsection (b) of Section 2782 of the Civil Code.
I. Waiver of Subrogation. Consultant’s commercial general liability, automobile liability, workers’ compensation, and employer’s liability policies shall be endorsed with a waiver of subrogation. The insurance company, in its endorsement, agrees to waive all rights of subrogation against the City, its agents, officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the City.
J. The 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.
K. Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on forms that conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT insurance policies, including endorsements affecting the coverage required by these specifications at any time.
SECTION 8 – INDEMNIFICATION
A. To the fullest extent allowed by law (including without limitation California Civil Code Sections 2782 and 2782.8), as may be applicable, Consultant shall indemnify, defend, and hold harmless City, its agents, officers, officials, employees, representatives, and volunteers from any and all claims, demands, suits, loss, damages, injury, and/or liability (including any and all costs and expenses in connection therewith, including legal fees and expert witness costs) (collectively, “Liabilities”), incurred by reason of any negligent or otherwise wrongful act or omission of Consultant, its officers, agents, employees, subconsultants, and subcontractors, or any of them, under or in connection with this Agreement; and Consultant agrees at its own cost, expense and risk to defend any and all claims, actions, suits, or other legal proceedings brought or instituted against City, its agents, officers, officials, employees and volunteers, or any of them, arising out of, pertaining to, or relating to such negligent or otherwise wrongful act or omission, and to pay and satisfy any resulting judgments.
B. When Consultant under this Agreement is duly licensed under California Business and Professions Code as an architect, landscape architect, professional engineer, or land surveyor (i.e., a “design professional,” pursuant to Civil Code § 2782.8(c)), the provisions of this section regarding Consultant’s duty to defend and indemnify apply only to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant.
C. If any action or proceeding is brought against Indemnitees by reason of any of the matters against which Consultant has agreed to indemnify Indemnitees as provided above, Consultant, upon notice from City, shall defend Indemnitees at Consultant’s expense by counsel acceptable to City, such acceptance not to be unreasonably withheld. Indemnitees need not have first paid for any of the matters to which Indemnitees are entitled to Indemnification in order to be so indemnified. The insurance required to be maintained by Consultant shall ensure Consultant’s obligations under this section, but the limits of such insurance shall not limit the liability of Consultant hereunder. The provisions of this section shall survive the expiration or earlier termination of this Agreement.
D. The provisions of this section do not apply to claims to the extent occurring as a result of the City’s sole negligence, active negligence, or willful acts or misconduct.
E. Duty to Cooperate. Each party shall notify the other party immediately in writing of any claim or damage related to activities or Services performed under this Agreement. The parties shall cooperate with each other in the investigation and disposition of all Liabilities arising out of the activities or Services under this Agreement.
F. In the event that Consultant executes any subconsulting agreements in connection with the Services performed under this Agreement, Consultant shall place in all such subconsulting agreements, and cause its subconsultants to agree to, the indemnity and insurance obligations in favor of City and other Indemnitees, as provided herein, in the exact form and substance of those contained in this Agreement.
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT G. Further, Consultant will defend and indemnify City, and hold it harmless, from any claim, demand or liability that is related to, or results from an assertion that as a result of providing services to City, a Consultant employee or a person performing work pursuant to this Agreement is entitled to benefits from, or is covered by, the Social Security retirement system or the California Public Employee Retirement Systems. Notwithstanding the foregoing, however, Consultant’s obligation for any payments to such a claimant shall be limited to those payments which the City may be required to pay. This indemnity obligation shall survive the termination or expiration of this Agreement.
SECTION 9 – INDEPENDENT CONTRACTOR STATUS
A. Consultant is and shall at all times remain a wholly independent contractor and not an officer, employee or agent of City. Consultant shall have no authority to bind City in any manner or to incur an obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City.
B. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall have control over the conduct of Consultant or any of Consultant’s officers, employees or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees or agents are in any manner officials, officers, employees or agents of City.
C. Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Consultant expressly waives any claim Consultant may have to any such rights.
SECTION 10 – CONFLICTS OF INTEREST AND ANTI-FRAUD AND ANTICORRUPTION POLICIES A. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of Services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent, or subcontractor without the express written consent of the City Manager. Consultant agrees to at all times avoid conflicts with the interests of City in the performance of this Agreement.
B. City understands and acknowledges that Consultant is, as of the date of execution of this Agreement, independently involved in the performance of non-related Services for other governmental agencies and private parties. Consultant is aware of any stated position of City relative to such projects. Any future position of City on such projects shall not be considered a conflict of interest for purposes of this section.
C. Consultant understands and acknowledges City maintains an anti-fraud and anticorruption policy to protect the City, its operations, and its employees from and against financial Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT risks, operational breaches, and unethical, fraudulent and corrupt activities. Consultant represents and warrants that Consultant, its subcontractor(s) / subconsultant(s) and their respective employees providing Services pursuant to the Agreement are (1) in good standing; (2) have not been previously investigated, convicted, or debarred for fraudulent or corrupt activities; (3) will not participate in fraudulent or corrupt activities, and (4) will take steps to ensure that its employees and subcontractor(s) / subconsultant(s) employees do not participate in any fraudulent or corrupt activities. Consultant acknowledges and agrees further that it has a duty to and will report to City any information or incident(s) about possible fraudulent or corrupt activities Consultant may discover, and will cooperate in any fraud or corruption investigation conducted, with respect to Consultant’s service provided pursuant to this Agreement.
SECTION 11 – OWNERSHIP OF DOCUMENTS
A. All original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared, developed or discovered by Consultant in the course of providing any Services pursuant to this Agreement shall become the sole property of City and may be used, reused or otherwise disposed of by City without the permission of the Consultant. When requested by City, but no later than three years after project completion, Consultant shall deliver to City all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents.
B. All copyrights, patents, trade secrets, or other intellectual property rights associated with any ideas, concepts, techniques, inventions, processes, improvements, developments, works of authorship, or other products developed or created by Consultant during the course of providing Services (collectively the “Work Product”) shall belong exclusively to City. The Work Product shall be considered a “work made for hire” within the meaning of Title 17 of the United States Code. Without reservation, limitation, or condition, Consultant hereby assigns, at the time of creation of the Work Products, without any requirement of further consideration, exclusively and perpetually, any and all right, title, and interest Consultant may have in the Work Product throughout the world, including without limitation any copyrights, patents, trade secrets, or other intellectual property rights, all rights of reproduction, all rights to create derivative works, and the right to secure registrations, renewals, reissues, and extensions thereof.
SECTION 12 – CONFIDENTIAL INFORMATION; RELEASE OF
INFORMATION
A. All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the City Manager, except as may be required by law.
B. Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of City, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement.
Response to a subpoena or court order shall not be considered “voluntary” provided consultant gives City notice of such court order or subpoena.
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT C. If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Consultant’s conduct.
D. Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite such response.
SECTION 13 – SUSPENSION OF WORK
City may, at any time, by ten (10) days written notice suspend further performance by Consultant. All suspensions shall extend the time schedule for performance in a mutually satisfactory manner and Consultant shall be paid for Services performed and reimbursable expenses incurred prior to the suspension date.
SECTION 14 – COMPLIANCE WITH LAW
Consultant shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this Agreement. Consultant shall obtain any and all licenses, permits and authorizations necessary to perform the Services set forth in this Agreement. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable, at law or in equity, as a result of any failure of Consultant to comply with this section.
SECTION 15 – COMPLIANCE WITH CIVIL RIGHTS
During the performance of this contract, Consultant agrees as follows:
A. Equal Employment Opportunity. In connection with the execution of this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, religion, color, ancestry, age, sexual orientation, gender, gender identity and gender expression as protected categories specifically and expressively in that category, physical handicap, medical condition, marital status, sex, or national origin. Such actions shall include, but not be limited to, the following: employment, promotion, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and selection for training including apprenticeship.
B. Nondiscrimination Civil Rights Act of l964. Consultant will comply with all federal regulations relative to nondiscrimination to federally-assisted programs.
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT C. Solicitations for Subcontractors including Procurement of Materials and Equipment.
In all solicitations, either by competitive bidding or negotiations, made by Consultant for work to be performed under a subcontract, including procurement of materials or leases of equipment, each potential subcontractor, supplier, or lessor shall be notified by Consultant of Consultant’s obligations under this Agreement and the regulations relative to nondiscrimination.
SECTION 16 – COMPLIANCE WITH CALIFORNIA LABOR CODE
REQUIREMENTS
A. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). If the services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.
B. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.
C. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor.
SECTION 17 – AUDIT AND INSPECTION OF RECORDS
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT A. Records of Consultant’s direct labor costs, payroll costs, and reimbursable expenses pertaining to this project covered by this Agreement will be kept on a generally recognized accounting basis and made available to City if and when required for a period of up to 3 years from the date of Consultant’s final invoice.
B. Consultant shall maintain all documents and records prepared by or furnished to Consultant during the course of performing the Services for at least three (3) years following completion of the Services. Such records include, but are not limited to, correspondence, internal memoranda, technical reports and investigations, calculations, books and accounts, accounting records documenting its work under its Agreement, and invoices, payrolls, records and all other data related to matters covered by this Agreement.
C. Consultant shall permit City to audit, examine and make copies, excerpts and transcripts from such records, and the Consultant shall in no event dispose of, destroy, alter, or mutilate said books, records, accounts, and data in any matter whatsoever for three (3) years after City makes the final or last payment or within three (3) years after any pending issues between City and Consultant with respect to this Agreement are closed, whichever is later.
SECTION 18 – LIMITATION OF LIABILITY
A. Consultant agrees that any liability of City arising in connection with this Agreement shall be limited exclusively to the City-entity identified as the “City” under this Contract. Under no circumstance shall any other City-entity be liable to Consultant under any theory, whether in contract, tort, or otherwise, and Consultant waives unconditionally any such claims. Consultant hereby waives and release other City-entites from any liability under this Agreement.
B. Notwithstanding any other provision of this Agreement, in no event shall City be liable, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect or incidental damages, including, but not limited to, lost profits or revenue, arising out of or in connection with this Agreement or the Services performed hereunder.
SECTION 19 – COOPERATION BY CITY
All public information, data, reports, records, and maps as are existing and available to City as public records, and which are necessary for carrying out the work as outlined in the Exhibit A, “Scope of Services”, shall be furnished to Consultant in every reasonable way to facilitate, without undue delay, the work to be performed under this Agreement.
SECTION 20 – NOTICES
All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, emailed, sent by facsimile, or first class mail, addressed as follows:
To City: City Manager
1572 Railroad Avenue
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT St. Helena, California 94574
To Consultant: MarinIT
366 Bel Marin Keys Blvd.
Novato, CA 94939
415-842-3275
Notice shall be deemed effective on the date personally delivered or transmitted by facsimile, email, or, if mailed, three (3) days after deposit in the custody of the U.S. Postal Service.
SECTION 21 – TERMINATION
A. City may terminate this Agreement, with or without cause, at any time by giving ten (10) days written notice of termination to Consultant. If such notice is given, Consultant shall cease immediately all work in progress.
B. If either Consultant or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Consultant, or City may terminate this Agreement immediately upon written notice.
C. Upon termination of this Agreement by either Consultant or City, all property belonging to City which is in Consultant’s possession shall be delivered to City. Consultant shall furnish to City a final invoice for work performed and expenses incurred by Consultant, prepared as set forth in this Agreement.
SECTION 22 – ATTORNEYS’ FEES
If litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing party in such litigation or other proceeding shall be entitled to an award of reasonable attorneys’ fees, costs and expenses, in addition to any other relief to which it may be entitled. In addition, any legal fees, costs and expenses incurred to enforce the provisions of this Agreement shall be reimbursed to the prevailing party.
SECTION 23 – ENTIRE AGREEMENT
This Agreement, including the attached Exhibits, is the entire, complete, final and exclusive expression of the parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between Consultant and City prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any party which are not embodied herein shall be valid and binding unless in writing duly executed by the parties or their authorized representatives.
SECTION 24 – SUCCESSORS AND ASSIGNS
Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT This Agreement shall be binding on the heirs, executors, administrators, successors and assigns of the parties. However, this Agreement shall not be assigned by Consultant without written consent of the City.
SECTION 25 – CONTINUITY OF PERSONNEL
Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff assigned to perform the Services required under this Agreement. Consultant shall notify City of any changes in Consultant’s staff assigned to perform the Services required under this Agreement, prior to any such performance.
SECTION 26 – DEFAULT
In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default and may terminate this Agreement immediately by written notice to Consultant.
SECTION 27 – WAIVER
Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision, or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or Services by Consultant shall not constitute a waiver of any of the provisions of this Agreement.
SECTION 28 – LAW TO GOVERN; VENUE
This Agreement shall be interpreted, construed and governed according to the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Napa. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Northern District of California, in San Francisco.
SECTION 29 – SEVERABILITY
If any term, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s).
SECTION 30 – THIRD PARTY BENEFICIARIES
Consultant’s subconsultants shall agree to be bound to the terms of the Agreement to the extent of their scope of Services, including but not limited to, terms regarding indemnity and dispute resolution, and shall agree that City is deemed an express third party beneficiary of Agenda Item #9.2.
IT Upgrades and Relocation Services for the NVC-TI: MarinIT their subconsultant agreements. Nothing contained in this Agreement, however, shall operate to confer such or similar rights or benefits on persons or entities not party to this Agreement.
SECTION 31 – STATUTES OF LIMITATION
As between the parties to this Agreement, any applicable statute of limitations for action arising out of, pertaining to, or relating to any act or failure to act in connection with this Agreement shall commence to run on the date of City’s issuance of the final Certificate for Payment, or termination of this Agreement, whichever is earlier, except for latent defects and/or deficiencies, for which the applicable statute of limitation shall begin to run upon discovery of the defect and/or deficiency and its cause.
SECTION 32 – SPECIAL PROVISIONS
This Agreement is subject to the following special provisions: none.
IN WITNESS WHEREOF, the parties hereto have accepted, made, and executed this Agreement upon the terms, conditions, and provisions above stated, the day and year first above written.
Consultant: City:
By: ________________________________ By: ________________________ Name: ______________________________ Name: James McCann Title:________________________________ Title: Interim City Manager Approved as to Form:
By: _________________________________
Name: Ethan Walsh
Title: City Attorney
Agenda Item #9.2.
Prepared for City of St. Helena
City Hall & PD Relocation
Quote#2022-002234 v1
PREPARED FOR PREPARED BY
Preya Tim Bush
Nixon [email protected]
[email protected] (415) 842-3251
(707) 967-2792
,
Agenda Item #9.2.
www.marinit.com -
Friday, June 3, 2022
City of St. Helena
Preya Nixon
1572 Railroad Avenue
St. Helena, CA 94574
[email protected]
Dear Preya,
Marin It would like to thank City of St. Helena for the opportunity to provide this proposal. Included are the costs for:
Labor, materials, and project management for the installation of Data Communication Infrastructure (data cable, fiber optics, data cabinets and communications racks, removal of old cabling, etc) Labor, materials, network equipment, and project management required for the move/relocation of city staff to the new facility
Professional biographies for the 3 Marin IT project managers working on this project A high-level timeline of events
Project Management Duties will be shared/split between 3 Marin IT Managers - Tim Bush, Deborah Hooper, and Jack Gorman.
Tim is a 30 year IT veteran with a wealth of experience working for large corporations such as Headlands Mortgage, Greenpoint Mortgage, and Advanced Fibre Communications, and Tellabs. Over the years his duties include hands-on network management, IT Operations & project management, Desktop and Help Desk management, and data center & cable infrastructure design. He has spent the past 14 years providing IT solutions, tier 1 & 2 support, and project management for customers all over the Bay Area.To date, he has been a technical project lead for over 100 corporate expansion, relocation, and construction projects. Most notably the relocation of corporate HQ for the Gap in San Bruno, and the technical lead for the construction and design of the Central Marin Police Department in Larkspur, Ca. He has been the account lead for St. Helena since 2016.
Deborah is a 21-year IT veteran with a wide-range of expertise, including a specialty in the design and implementation/support of Cisco phone systems, Network Engineering, as well as Account and Project Management. Her duties include lead voice engineer, project / account manager, Employee supervisor. To date she has played a key role in design, configuration and installation of over 20 Cisco Call Managers for luxury resorts, school districts, public safety organizations, city and county governments, corporations and small single office companies.In addition to Deborah's technical prowess, she leads employee development initiatives, as well as internal policies and procedures for Marin IT. Deborah was the lead engineer for the City's VoIP install in 2017, and has been supporting it since then.
Jack is a hands-on technology leader with over 30 years IT experience, 25 of them working with Silicon Valley startups and global corporations. He has in-depth knowledge and experience in architecting, deploying, and operating critical enterprise systems, server and network design, high availability database and application configurations, as well as both hard and virtual end user compute environments. He is well-known for being able to design complex enterprise-wide systems, solving tough IT challenges, and stabilizing IT environments, while minimizing cost on technology investments. He has taken on multiple management roles in his career including CIO, IT Director, Senior Manager of Corporate IT, Senior Systems Architect, and Senior Systems Engineer.
He is a team builder – having built, mentored, and managed many IT teams in the past. With Marin IT, he takes on the role of Service Manager, to participate in delivering the world class service our clients deserve.
COSH Relocation-ver-5-18-22 Page: 2 of 14
Agenda Item #9.2.
www.marinit.com -
City Hall & PD Relocation Schedule of Events Summary
This detail is not intended to serve as a project/construction/implementation plan for the City Hall relocation. Its purpose is to give COSH a general description of what to expect after the project contract(s) are awarded Phase 1 – Discovery – (completed in late 2021):
Evaluate new building and determine if current infrastructure is adequate by working with City staff, architectural team , etc.
Perform infrastructure and Technology needs assessment Determine general floorplan and building layout and begin design on cabling and IT infrastructure Provide pricing for project with scope of work
Phase 2 - Project planning – approximately one month
Upon award of bid for tenant improvements, planning meetings will be held to determine schedule Marin IT to provide required documentation, scope of work, required timelines, and lead times on gear to the General contractor and COSH
Work with construction manager to create project schedule Phase 3 – Demo, Site Prep, Infrastructure and Network Install Demo and site prep go first (demo the old cable, clear out pathways The next set of tasks would be determined in the planning phase. That said, the project managers and foreman would be working with the electricians and construction crew on locations for conduit, and finding pathways for other miscellaneous cable runs
There is normally 2-3 weeks (sometimes more) before the cabling can really get going, but the next step is to begin “roughing in” the cables. This means pulling it from end-to-end, labeling and coiling it up so it’s out of the way – about a week give or take
Provided flooring and most of the construction and HVAC work is far enough along, the next step would be to start installing the cabinets, data racks, and ladder rack supports (IDF/MDF buildout). This is important to do before the electricians get into the rooms, so they know where to place the power. This usually take a few days. When ready, the cable crew begins installing patch panels and other rack hardware. Then begins terminating, testing, and labeling the cables. On this size job it would probably be done in a week or less.
Phase 4 - Project go live – Implementation of IT Infrastructure & Relocation Manage the ordering and installation of Internet & Telecommunication services to coincide with the schedule COSH Relocation-ver-5-18-22 Page: 3 of 14
Agenda Item #9.2.
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o Work with the General Contractor to provide support for various systems – mostly HVAC, electrical, and Security control systems
o Hold internal project planning for
Network design
Network install and turn-up
Move day and install, testing, etc.
Day one support
Network design and layout
Equipment Install/Network Activation
o 2 weeks prior to “Day 1” we configure the IT equipment and prep for install o Delivery and turn up of Internet service is always scheduled 2 weeks prior o Once the circuit is live, we begin the installation of the network. This is dependent on:
MDF/IDF are built
Power has been connected
Cabling is ready
Move day
o Typically begins on a Friday – Marin IT crew will break down the computers and prep the gear that needs to move
o Network engineer(s) take the firewalls and other equipment to the new site and bring the site online (connect VPN tunnels to all other sites and test)
o While the Engineers are getting the network going, the field techs are setting up the computers, printers, etc. o The cabling crew will hang all the wireless access points o Everyone stays behind until it is complete - everything is tested and made ready for Monday o 2 field techs will be onsite for Day 1 & we have an engineer on call o We will leave the VoIP service in play at 1480 Main until the PD relocates to avoid the purchase of additional equipment
*** - The move day cycle repeats when the PD moves
If you have any questions please contact Tim Bush directly.
Tim Bush
Director of Accounts
Marin IT
COSH Relocation-ver-5-18-22 Page: 4 of 14
Agenda Item #9.2.
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Cabling Scope of Work
DESCRIPTION QTY
1 Scope of Work – City Hall/PD Cable Install and MDF/IDF Buildout Design Services
Furnish design / engineering services as needed for project installation. Meet and review all project requirements with Project Team. Update Scope of Work, Drawings and Budget.
Project Management
Furnish Project Management to attend meetings and coordinate installation with Project TEAM.
Cabling Demo:
Furnish labor only to demo unneeded cabling in pathways and overhead to create space for new cable (REQUIRED).
Horizontal Cabling – (138) CAT6 Plenum Cables
Furnish and install (3) Wall locations with (1) CAT6 plenum cable, complete with CAT6 RJ45 jack, faceplate, testing and labeling.
Furnish and install (39) Wall locations with (2) CAT6 plenum cables, complete with CAT6 RJ45 jacks, faceplate, testing and labeling.
Furnish and install (3) Wall locations with (6) CAT6 plenum cables, complete with CAT6 RJ45 jacks, faceplate, testing and labeling.
Furnish and install (4) Floor locations with (1) CAT6 plenum cable, complete with CAT6 RJ45 jack, faceplate, testing and labeling.
Furnish and install (3) Floor locations with (2) CAT6 plenum cables, complete with CAT6 RJ45 jacks, faceplate, testing and labeling.
Furnish and install (4) Interior Camera locations with (1) CAT6 plenum cable, complete with CAT6 RJ45 jack, SMB, testing and labeling.
Furnish and install (11) Outside Camera locations with (1) CAT6 OSP cable, complete with CAT6 RJ45 jack, SMB, testing and labeling.
Furnish and install (14) WAP locations with (1) CAT6 plenum cables, complete with CAT6A RJ45 jacks, SMB, testing and labeling.
Furnish and install (4) 48 port modular patch panels, complete with horizontal wire management. Furnish and install (276) CAT6 patch cables for workstations and connection to the Network Switch.
Backbone Cabling – MDF to IDF Fiber Tie
Furnish and install (1) 12-Strand OS2, armored, plenum SM Fiber Optic Cable from the MDF to the IDF, complete with termination hardware and LC connectors.
IT Room Buildout – PD MDF & City IDF Rooms
Furnish and install (1) 36” equipment cabinet, (1) 2-post equipment rack in PD MDF Room, complete COSH Relocation-ver-5-18-22 Page: 5 of 14
Agenda Item #9.2.
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Cabling Scope of Work
DESCRIPTION QTY
with (2) 6” vertical wire manager, ladder rack and seismic bracing. Furnish and install (1) 36” equipment cabinet, (1) 2-post equipment rack in St. Helena IDF Room, complete with (2) 6” vertical wire manager, ladder rack and seismic bracing. Furnish and install grounding & bonding.
WAP Devices & Network Gear Installation
Furnish labor and misc. materials to install (14) OFE WAP devices Furnish labor to install and patch network equipment, UPS's, and other misc network gear Clarifications and Exclusions for network cabling:
Cabling contractor will:
Dress, Test & Label all Cables.
Furnish Test Results, As Built Drawings & Documentation Package. Provide Manufacturer Application Assurance & Product Warranty. Provide Lifetime Workmanship Warranty.
Exclusions by cabling contractor:
Additional work that is not listed in, and/or outside in the scope of work above Pathway installation, conduit, electrical boxes, fireproofing, painting, patching Overtime/Premium time – quoted for normal business hours M-F Cost Overview
Labor Costs are $46,143.00
Material costs (including tax) are $55,397.50
Estimated Shipping is $1000.00
The total cost of this phase of the project including tax is $102,540.50 Cabling Materials and Labor
DESCRIPTION PRICE QTY EXT. PRICE
Project Management, Documentation, Cable Testing $9,100.00 1 $9,100.00 Demolition $7,957.00 1 $7,957.00
Horizontal Cabling $50,800.00 1 $50,800.00
COSH Relocation-ver-5-18-22 Page: 6 of 14
Agenda Item #9.2.
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Cabling Materials and Labor
DESCRIPTION PRICE QTY EXT. PRICE
Backbone Cabling $8,354.00 1 $8,354.00
IT Room Buildouts $20,640.00 1 $20,640.00
Network Equipment install and patching $4,607.00 1 $4,607.00 Subtotal (includes estimate $1,000 shipping and tax): $102,540.50 COSH Relocation-ver-5-18-22 Page: 7 of 14
Agenda Item #9.2.
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Phase 4 - Relocation & Project Management
DESCRIPTION QTY
1 Scope of Work – City Hall Relocation, Project management, Network Buildout Infrastructure/Construction:
Coordinate and manage BEI construction’s buildout of Data Center/Computer Room/MDF/IDF o Provide requirements and oversee installation of electrical and HVAC o Provide design and oversee installation of cabling, equipment racks/cabinets, etc. Coordinate and manage communications cabling design and installation Work with communications vendors to obtain properly sized WAN/Internet and voice connectivity o Coordinate install and activation (exact timing TBD)
o Ensure Internet circuit relocation/delivery for Firehouse and PD (required due to relocation of City Hall) LAN/WAN Support
o Provide LAN/WAN design including documentation
o Coordinate and manage installation and turn-up, testing, etc.
Move Support:
Work with client and other vendors on relocation plan, attend meetings, provide status updates, etc.
Coordinate and provide Marin It Staff for breakdown, setup, and testing at new location:
o Computers/Laptops
o Printers/Multi-function machines
o Phones, Fax
o Servers, Switches, Routers, Wireless, Firewalls, etc. Provide day 1 support
Network Buildout, Site Prep. Engineering - ***See "relocation Services/Labor" section COSH Relocation-ver-5-18-22 Page: 8 of 14
Agenda Item #9.2.
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Relocation Services/Labor
DESCRIPTION PRICE QTY EXT. PRICE
Professional Services - Network engineering and site prep Build Meraki cloud account(s) and register network equipment Configure network management, build VLANS, assign
port configurations
Deliver to new site and install
Install temp firewall, turn up Internet and test
Patch end-user workstations - randomly test for connectivity Prep network for move-in
$125.00 32 $4,000.00
Professional Services - Network engineering for move
Turn up and test new Comcast for Firehouse
Install and configure new firewall - build VPN mesh and test connectivity to remote data center, new city hall, other remote sites
$125.00 8 $1,000.00
Professional Services - City Hall Relocation $125.00 96 $12,000.00 Breakdown and prep computers, printers, wireless, network equipment, servers, etc.
Assist move team to ensure proper placement of gear
Assemble and setup end-user gear, neatly dress cables, bring online - test and verify phones, resource access, Internet, email, printing, etc.
Install network equipment, servers, storage, misc. peripherals Install Wireless Access Points
Provide “Day-1” support
- 2 technicians, with Engineer on-call
- Account Manager (Tim Bush) will also be onsite to assist Assumptions/Clarifications:
Marin IT will provide 3 field Techs and 1 Sr. Engineer/Admin for the relocation
The quoted price above is a 'not-to-exceed' amount that will cover up to 160 hours (4 techs, 8 hours per day for 5 days) - COSH will only be billed for actual hours used
Agenda Item #9.2.
COSH Relocation-ver-5-18-22 Page: 9 of 14
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Relocation Services/Labor
DESCRIPTION PRICE QTY EXT. PRICE
Professional Services - Police Department Relocation
Breakdown and prep computers, printers, wireless, network equipment, servers, etc.
Assist move team to ensure proper placement of gear
Assemble and setup end-user gear, neatly dress cables, bring online - test and verify phones, resource access, Internet, email, printing, etc.
Install network equipment, servers, storage, misc. peripherals Install Wireless Access Points
Provide “Day-1” support (2 technicians)
$125.00 64 $8,000.00
Assumptions/Clarifications:
Marin IT will provide 3 field Techs and 1 Sr. Engineer/Admin for the relocation
The quoted price above is a 'Not-to-Exceed' amount that will cover up to 160 hours (4 techs, 8 hours per day for 5 days) - COSH will only be billed for actual hours used
Professional Services - Project Management
160 hours @ $125 per hour would provide up to (20) full days of Project Management Services. Marin IT is proposing this as a 'Not to Exceed' amount, and will only bill COSH for actual hours used (basically a block of hours to bill against). Marin IT will invoice COSH monthly, however we will provide a weekly report of hours used vs hours available. If there is a need for additional hours, Marin IT will discuss options with April Mitts and/or Preya Nixon.
$125.00 160 $20,000.00
Subtotal: $45,000.00
Agenda Item #9.2.
COSH Relocation-ver-5-18-22 Page: 10 of 14
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Network Hardware
DESCRIPTION PRICE QTY EXT. PRICE
LAN Switches - 3 each for City and PD
Meraki Ethernet Switch -
$4,058.15 6 $24,348.90
48 Ports - Manageable - 2 Layer Supported - Modular - Twisted Pair, Optical Fiber - 1U High - Rack-mountable - 48 x 10/100/1000BASE-T Ethernet RJ45 with auto negotiation and crossover detection (auto-MDIX crossover) and PoE+; 4 x 1G SFP+ uplink; RJ45 Management port Agenda Item #9.2.
COSH Relocation-ver-5-18-22 Page: 11 of 14
Meraki 1000 Base Fiber Single-Mode With uplinks 1000Base-LX10 $848.62 2 $1,697.24 Network1
Outdoor Wireless for courtyard area Meraki MR70 Wireless Access $589.68 3 $1,769.04 Point
5 GHz, 2.40 GHz - MIMO Technology - 1 x Network (RJ-45) - Wall Mountable, Pole-mountable
Xtreme Power P-80-2200 UPS Battery $906.60 2 $1,813.20
Backup
1 Each for City Hall IDF and PD MDF
Extended run-time Battery Pack for
battery backup system
$653.18 2 $1,306.36
Misc Materials $3,500.00 1 $3,500.00
Cables, connectors, installation hardware, cable management, etc Subtotal: $40,844.50
Meraki 1 GbE SFP Copper Uplink Module For Switches $363.72 8 $2,909.76 Palo Alto Networks Firewall for Firehouse $3,500.00 1 $3,500.00 **- $3500 is not to exceed amount - COSH only billed for actual amounts needed
Agenda Item #9.2.
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Software/Misc. Licenses
DESCRIPTION PRICE QTY EXT. PRICE
Cisco Meraki Enterprise Support & Subscription License - 1 per $391.89 4 $1,567.56 device - 3 Year term
COSH Relocation-ver-5-18-22 Page: 12 of 14
Meraki MR Enterprise Cloud Controller License, 3 Years - Meraki MR Series Access Point - Subscription License 1 Access Point - 3 Year License Validation Period
$200.71 3 $602.13
Subtotal: $2,169.69
Contingencies
Recommended contingency for Cabling - Roughly 15% of overall $15,000.00 1 $15,000.00 Cost
Recommended contingency for relocation materials and labor - $9,000.00 1 $9,000.00 Roughly 15% of overall Cost
Subtotal: $24,000.00
DESCRIPTION PRICE QTY EXT. PRICE
Agenda Item #9.2.
www.marinit.com -
COSH - City Hall Relocation
Prepared by: Prepared for: Quote Information:
Marin IT City of St. Helena 2022-002234
Tim Bush
(415) 842-3251
[email protected]
1572 Railroad Avenue
St. Helena, CA 94574
Preya Nixon
(707) 967-2792
[email protected]
Version: 1
Delivery Date: 06/3/2022
Expiration Date: 05/31/2022
Quote Summary
DESCRIPTION AMOUNT
Cabling Materials and Labor $102,540.50
Relocation Services/Labor $45,000.00
Network Hardware $40,844.50
Software/Misc Licenses $2,169.69
Contingencies $24,000.00
Subtotal: $213,472.19
Shipping: $1,500.00
Estimated Tax: $3,204.67
Total: $219,259.86
Prices: Quoted product pricing is valid for thirty (30) days assuming product availability, and does not include applicable taxes and freight.
Buyer agrees to pay reasonable shipping charges and all applicable taxes (excluding income taxes). Services include only those items specified in the quotation. Additional services may be provided at Marin IT’s then standard billing rates.
Payment: Payment shall be made within 30 days of the date of invoice. If any invoice is not paid when due, interest will be added to and payable on all overdue amounts at 18 percent per year, or the maximum percentage allowed under applicable laws, whichever is less. Buyer shall pay all costs of collection, including without limitation, reasonable attorney fees.
Warranties: Product warranties, if any, are provided by the manufacturer or publisher of the products. MARIN IT, INC. MAKES NO
WARRANTIES, EITHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARANTY OF FITNESS FOR A PARTICULAR PURPOSE, WHATSOEVER. ALL SERVICES AND DELIVERABLES ARE PROVIDED ON AN "AS IS" BASIS.
Limitation of Liability: CUSTOMER AGREES THAT THE LIABILITY OF MARIN IT FOR DIRECT DAMAGES RELATED TO ANY PRODUCT OR
SERVICE ARISING UNDER THESE TERMS AND CONDITIONS, WHETHER IN CONTRACT, TORT, OR OTHERWISE, WILL NOT EXCEED THE NET AMOUNT PAID TO MARIN ITBY CUSTOMER FOR THAT PRODUCT OR SERVICE WHICH IS THE SUBJECT OF THE CLAIM.
MARIN ITSHALL IN NO EVENT BE LIABLE FOR ANY INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES OF ANY NATURE, EVEN IF MARIN IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NEITHER PARTY
MAKES ANY REPRESENTATION OR WARRANTY AS TO ANY THIRD PARTY INFORMATION OR PRODUCTS PROVIDED TO EACH OTHER, ALL OF WHICH ARE PROVIDED, SOLD OR LICENSED "AS IS," AND THE PARTIES AGREE TO LOOK SOLELY TO THE WARRANTIES AND REMEDIES, IF ANY, PROVIDED BY THE THIRD PARTY.
COSH Relocation-ver-5-18-22 Page: 13 of 14
Agenda Item #9.2.
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Marin IT City of St. Helena
Signature: Signature:
Name: Tim Bush Name: Preya Nixon
Title: Director of Accounts Date:
Date: 6/3/2022
COSH Relocation-ver-5-18-22 Page: 14 of 14
Agenda Item #9.2.
Modular Offices
CITY OF St. HELENA
Police Department Locker Room
June 21, 2022
Agenda Item #9.2.
Modular Building Proposal
Quote #: JD2021-106 rev.2022.06.21
State: CA Zip: 94574
# of mods: 2 Square Feet: 960
1. 2.
3. $ 259,840
$ 55,529
$ 5,013
$ 26,249
$ 667
$ 3,067
$ 350,365
plus sales tax @ 8.25% $ 28,905
$ 379,270
VESTA Modular is pleased to present the following preliminary budget for consideration of the modular solution as discussed. Utilizing only newly constructed modular buildings, below is the pricing for consideration. The pricing provides the cost of the building, along with pricing for delivery, installation, skirting, ramps/landings and any other options itemized below.
Modular Locker Room
Building Size: 24x40
Building Description:
City: St. Helena
Project Information:
2. Building Delivery and Installation:
SUBTOTAL:
PROJECT TOTAL:
June 21, 2022
St. Helena Police Department
New Locker Room Building
VESTA Modular has a co-operative contract with the TIPS-USA (https://www.tips-usa.com/) co-op that has been awarded via a competitive bid or RFP process in accordance with government purchasing statues which allows us to contract with public entities.
Project Name:
Customer Name:
Modular Building Scope of Work:
24x40 Modular Locker Room Per the attached Building Specifications.
Transportation of modular units to project site at address listed above.
Address: 1188 College Ave.
1. Base Building Price (includes UL-752 Level 2 Bullet Resistant fiberglass panels on one 40' sidewall) Installation of modular units (and ramps/landings if applicable).
Includes: prevailing wage rates (on site only), setting of modules on pad & piers support system above grade with anchors, structural connections, skirting, exterior dry-in of modules, exterior and interior mate-line finishes.
Building Purchase and Option Pricing
3. Skirting Supplied and Installed:
4. Decks, Steps, and Ramp
5. Engineering for Pad/Pier/Tie-Down Modular Support System
6. Add anchors and tie-downs (Anticipated 20 tie-downs required. Final number will be confirmed after engineering calcs are completed.)
Proposal Letter 6/21/2022
2 Agenda Item #9.2.
Modular Building Proposal
One-Time Installation Costs
$ 48,676 $ 48,676
$ 5,000 $ 5,000
$ 4,428 $ 4,428
$ 58,104 $ 58,104
Recurring Monthly Costs TERM MONTHLY TOTAL MONTHLY TOTAL 84 $ 4,132 $ 347,054 $ 4,132 $ 347,088
84 $ 334 $ 28,034 $ 334 $ 28,056
84 $ 368 $ 30,945 $ 368.45 $ 30,949.80
$ 4,834 $ 406,033 $ 4,834.45 $ 406,093.80
One-Time Tear Down Costs
$ - $ 62,009
$ - $ 8,000
$ - $ 5,776
$ - $ 75,785
*If Ramps/Decks/Steps are rented, the rental term will be concurrent with and for the same term as the building. Pricing good for 30 days.
Best Regards,
Joshua Dean
Director of Business Development, Western Region
Vesta Modular
(951) 378-6942
[email protected]
Without bulletproofing
Building Teardown & Return:
Ramps/Decks/Steps Teardown & Return:
8.25% Tax:
Due Prior to Building Removal
Monthly Totals:
Lease rate for ramps/decks/steps:
Without bulletproofing With bulletproofing
Ramps/Decks/Steps Delivery and Install:
Thank you again for the opportunity to provide this proposal. If you have any questions or concerns, please do not hesitate to contact me.
Lease rate for building:
8.25% Tax:
Lease Pricing
Total Due at Building Installation:
8.25% Tax:
Delivery, Installation, Connection to Sewer, Water, and Power Proposal Letter 6/21/2022
3 Agenda Item #9.2.
Modular Building Proposal
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VESTA subcontractors will exercise care in the performance of their Work. If damage to asphalt, concrete or other site damage occurs due to site conditions at the time of delivery and installation of the modules by truck, all site restoration will be the responsibility of the Owner.
General Clarifications:
Excludes the relocation of any underground utilities that may interfere with VESTA Scope of Work.
Costs for delivery, installation, decks, steps, and ramps are not included unless indicated above.
Pricing is subject to change based on time of order.
Customer is responsible for all required permits and approvals for delivery, installation, and use of the equipment.
Customer must bring site water, sewer, and electric to within 5' of point of connection to the building.
Customer is required to provide unimpeded access to the site. The site must be level with no obstructions above or below grade.
Customer to provide obstruction free truck access to the site and properly graded site for unit’s installation. The site must be level with no obstructions above or below grade. Installation pricing assumes floor height not to exceed 36” above finish grade. Customer to provide a suitable staging area for the delivery of modular units to site.
Labor on site is at prevailing wage rates.
Excludes fire alarm, low voltage and fire suppression.
Excludes plumbing and electrical intermodular connections and lines connection to electric, water and sanitary mains and temporary utilities.
Lessee to provide property Certificate of Insurance equal to the replacement value of the modular units immediately upon their delivery to the job site.
This proposal is subject to the parties executing VESTA’s standard lease agreement.
All changes to this proposal must be agreed to in writing by VESTA senior management.
Lease Option Clarifications
This Proposal is based solely upon the Scope of Work contained herein. Any work or modifications not specified herein will be considered extras and will be a change order to the Contract. Change order Work to proceed after Customer’s written acceptance.
Excludes the excavation and removal of classified fill for foundations only. VESTA shall not be responsible for any environmental and/or subsurface conditions.
All proposals and quotes are subject to VESTA customer credit approval. Standard payment terms for sales are 50% down 40% at delivery and 10% net 10 days after install is complete, subject to credit status.
Please go to https://vestamodular.com/customer-credit-application/ to complete a credit application prior to order.
Any work or modifications not specified herein will be considered extras and subject to price increase.
VESTA shall not be held liable for any impacts, delays, labor overruns, material overruns and/or cost overruns related to its work stemming from the current flu epidemic, and/or COVID-19 (Coronavirus epidemic) as defined by the United States Centers for Disease Control and Prevention. VESTA shall further be entitled to a change order for any and all time and costs associated with said epidemic(s).
Lessee is responsible for care and performing normal preventative maintenance during the lease term including filter service and periodic maintenance of HVAC units at intervals required by the Manufacturer.
Buildings, furniture and equipment to be returned in the same condition as accepted, ordinary wear and tear accepted. Lessee will be charged for damages, cleaning and/or repairs needed to return the equipment to original condition.
All proposals and quotes are subject to VESTA customer credit approval and available inventory. Standard payment terms are 50% of OneTime costs due upon execution with balance due upon completion of work, subject to credit status.
State and local sale taxes are not included and are Customer’s responsibility upon demand if applicable.
Proposal Letter 6/21/2022
4 Agenda Item #9.2.
Modular Building Proposal
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Exclusions
Weekend or holiday work.
All site work including but not limited to: site preparation and access, removal of spoils, sod, and/or asphalt from site, engineered pad, utility meters, pressure regulators and shut-off valves, walkways, landscaping, irrigation, concrete curbs, flatwork, expansion joints, grading and excavation, backfill, under building drainage sump pumps and/or drywells, soil testing and reports, survey/staking, fences, gates, underground piping.
RAMP PLAN
All wire, controls, devices, equipment and connections for all low voltage systems including but not limited to energy management system, fire alarm, communication, signal, smoke and heat detector, and security systems.
Lighting control panel
MODULAR BUILDING SPECIFICATION
FLOOR PLAN
Appliances, furniture, and/or equipment.
All signage including restroom door signage.
PSA/PLA or other Labor Union Agreements.
Davis Bacon Wages.
WUI code.
Electrical grounding system or components, transformers and main switch gear.
Water system chlorination
Fire sprinkler system, unless otherwise noted.
LEED requirements.
Attachments
If fire sprinklers are included: Site contractor is responsible to bring fire water line to riser location, with underground piping stubbed at least 12" aff for connection by sprinkler contractor. Water flow tests and rates (required for sprinkler design) are excluded.
Temporary toilet facilities.
Any fire rating requirements due to orientation of building on site, property lines, etc.
Gutters and awnings.
Window coverings.
Low voltage raceways, conduits, or cable trays above ceiling.
Foundation weld plates, vents, and grates.
Fire rated assemblies unless otherwise noted.
Secure staging area.
Craning unless specifically included above.
Concrete foundations or rodent slab.
Architect or Engineer of Record.
Permanent or temporary power, telephone, security, dust control.
Proposal Letter 6/21/2022
5 Agenda Item #9.2.
BUILDING SPECIFICATIONS
Description: 24'x40' B Restroom / Locker room. St. Helena, CA
COMPONENT SUB-COMPONENT DESCRIPTION QUANTITY
FRAME
OUTRIGGER 2.00
AXLES
Chassis Basement 12' X 40' - I-Beam OR/CM/MC 8'/8'/8'
Quad Axle (4 Brake Axles) 2.00
FLOOR
JOIST
DECKING
INSULATION
COVERING
MISC
EXTERIOR WALL
STUDS
SIDING
COVERING
INSULATION
INTERIOR WALL
STUDS
2 X 8 @ 16" O/C
50# Floor load
3/4" T&G Plywood
R-30 Unfaced (2 layers R-15)
Sheet Vinyl .080 Commercial
Thru-Out
Bottom Board Mobile-Flex
2 X 6 Ext. Wall Framing
Smart Panel - 8" O/C Grooves - W/House Wrap
8' FRP Over 1/2" MR (Nudo-Exterior Wall )
Floor to ceiling line.
R-21 Kraft (Exterior Wall)
2 X 4 Wall Framing - 8' Tall
Includes dbl. wall at mnodline
INSULATION R-11 Unfaced Int. Wall @ 8' Tall
Thru-out
COVERING 8' FRP Over 1/2" MR (Nudo- Interior Wall)
To celing line. (Raw gyp. Above ceiling lint )
COLUMNS Roof Support Column - Concealed
MISC Wall Extended To Rafters
All walls
COVE BASE
COVE BASE 6" Self-Cove
ROOF
JOIST
INSULATION
20# Roof Load (1/4" in 12" pitch shed to rear)
R-30 Unfaced (W/ Support Netting)
6 Agenda Item #9.2.
BUILDING SPECIFICATIONS
Description: 24'x40' B Restroom / Locker room. St. Helena, CA
COMPONENT SUB-COMPONENT DESCRIPTION QUANTITY
ROOF DECKING 1/2" Wood Decking (Roof)
DECKING 1/4" Dens-Deck
COVERING EPDM .045 - White
CEILING 2X4 - Vinyl Face Tile - Upgrade
Restroom/Shower room only.
CEILING 2 X 4 - T-Grid - Mineral Fiber #769A
Ceiling hgt. 7'-10"
WINDOW
MISC
EXTERIOR DOOR
DOOR 2.00
LOCKSET 2.00
2.00 ELECTRICAL
2.00 10.00
2.00 4.00
6.00 6.00
24.00 4.00
HARDWARE
PANEL
RACEWAY
LIGHT
EXTERIOR LIGHTS
EXIT/EMERGENCY LIGHTS
SWITCH
SWITCH
RECEPTACLE
RECEPTACLE
RECEPTACLE
1.00 PLUMBING
PIPE
None Provided
36X80 - 18ga Door - W/ Tell Jamb
Panic - Tell 8300B - W/ Keyed Lever
Closer - Tell 600 Series
Nema 3R, External, 125 Amp Single Phase
Flex W/ Ground
Troffer 2 X 4 - LED - 4000 To 6000 Lumen
Exterior 30W LED Porch Light With Photocell
Emergency Light - Dual Head
Occupancy Sensor Ceiling Mount (Single Relay)
Switch Sensor Dimming
Locker Receptacle
12 ea. ,Locker room
20A - GFCI Duplex
20A - WR GFCI Protected W/ While In Use Cover
Copper Plumbing Drop
7 Agenda Item #9.2.
BUILDING SPECIFICATIONS
Description: 24'x40' B Restroom / Locker room. St. Helena, CA
COMPONENT SUB-COMPONENT DESCRIPTION QUANTITY
PLUMBING
WATER CLOSET Water Closet - ADA - Low Flow - Elongated 2.00 WATER CLOSET Water Closet - Std - Low Flow - Elongated 2.00 LAVATORIES Lavatory - Wall Hung 2.00
SHOWERS Shower ADA - 60" 2.00
SHOWERS Shower STD - 36" - (Non-ADA) 2.00
FLOOR DRAIN Floor Drain W/Trap Guard 2.00
Shower rooms
WATER HEATERS 50 Gallon - Electric Water Heater 1.00
ACCESSORIES Modesty Partition 4.00
ACCESSORIES Grab-Bar Set 2.00
ACCESSORIES Mirror - 24" X 36" - W/Clips 2.00
ACCESSORIES Single Roll Toilet Paper Holder 4.00
Bobrick B-273
ACCESSORIES Wall Mount S.S. Soap Dispenser 2.00
Bobrick B-2111
MISC Restroom Sign 2.00
MISC In-Line Strainer 1.00
MISC Pipe Insulation
Per code only.
HVAC
H/P - WALL MOUNT 3.0 Ton - 100% Fresh Air - 1P - w/pgm. T-stat 2.00 DUCT Fiberglass / Flex - Supply Air Duct
EXHAUST FANS 80 CFM - Ceiling Mount 8.00
2 ea. Locker room and 2 each restroom/shower
MISC Barometric Relief Damper 8.00
MISC
MISC Shipping Wall
MISC Close-Up
STATES
STATE APP CA Approvals
8 Agenda Item #9.2.
FACTORY CLARIFICATIONS:
24'x40' B Restroom / Locker room. St. Helena, CA
IF YOU DO NOT SEE A SPECIFIED ITEM WRITTEN IN THE PROPOSAL, IT IS NOT INCLUDED.
BULLET RESISTANT MATRIALS NOT INCLUDED IN BASE (SEE OPTIONS TO ADD) NO PROVISIONS FOR EXTERIOR FIRE RATING. VESTA MODULAR ASSUMES THE MINIMUM REQUIRED DISTANCE FROM ANY AND ALL COMMON OR ASSUMED PROPERTY LINES.
BUILDING IS QUOTED PER THE 2019 CBC, 2019 CEC, 2019 CMC, 2019 CPC, AND 2019 CALIFORNIA ENERGY CODE BASED ON COMPLIANCE WITH TITLE 25, ARTICLE 3, SECTION 4369B VESTA MODULAR TAKES EXCEPTION TO ALL OTHER CODES, REGULATIONS AND JURISDICTIONS. (CLIMATE ZONE 16)
100% FRESH AIR HOOD HAS BEEN PROVIDED AT THE HVAC AS REQUIRED BY CODE. AS A RESULT, VESTA MODULAR IS
NOT RESPONSIBLE FOR INSUFFICIENT HEATING OR COOLING (OR THE COMFORT OF THE OCCUPANTS OF THIS BUILDING) DURING EXTREME TEMPERATURES BECAUSE OF THE 100% FRESH AIR INTAKE REQUIREMENTS.
VESTA MODULAR CANNOT GUARANTEE ADEQUATE HOT WATER DURING PERIODS OF HEAVY USAGE. 50 GALLON ELECTRIC WATER HEATER PROVIDED.
FLOORS DO NOT SLOPE TOWARDS FLOOR DRAINS.
VESTA MODULAR TAKES EXCEPTION TO LIQUIDATED DAMAGES.
DAVIS BACON WAGES ARE EXCLUDED.
PREVAILING WAGES EXCLUDED FOR ANY SERVICE/WARRANTY WORK THAT WOULD BE REQUIRED OF THE BUILDING FACTORY.
IF SPECIALTY TRAINING OR NON-STANDARD REQUIREMENTS ARE NECESSARY FOR SITE ACCESS INCLUDING FOR SERVICE/WARRANTY WORK, CHANGE ORDER COSTS WILL BE INCURRED.
STANDARD ONE YEAR WARRANTY APPLIES
PLUMBING MANIFOLD IS NOT INCLUDED.
LOCKERS AND BENCHS NOT INCLUDED.
PLEASE NOTE:
VESTA MODULAR IS NOT RESPONSIBLE FOR CODE COMPLIANCE WITH ANY REGULATORY BODY OTHER THAN THE STATE AGENCY WHERE THE BUILDING WILL BE LOCATED. COMPLIANCE WITH ANY SPECIAL CODE OR REQUIREMENTS DUE TO OCCUPANCY OR USE OF SUCH BUILDING IS NOT INCLUDED IN THIS PROPOSAL. IF, DURING THE PERFORMANCE OF THIS CONTRACT, THE PRICE OF BUILDING MATERIALS SIGNIFICANTLY
INCREASES, THROUGH NO FAULT OF THE MANUFACTURER, THE PRICE OF THESE BUILDING MATERIALS MAY BE EQUITABLY ADJUSTED BY AN AMOUNT REASONABLY NECESSARY TO COVER ANY SUCH SIGNIFICANT PRICE INCREASES. SUCH PRICE INCREASES SHALL BE DOCUMENTED.
WHERE THE DELIVERY OF BUILDING MATERIALS IS DELAYED, THROUGH NO FAULT OF THE MANUFACTURER, AS A RESULT OF A SHORTAGE OR UNAVAILABILITY, MANUFACTURER SHALL NOT BE LIABLE FOR ANY ADDITIONAL COSTS OR DAMAGES ASSOCIATED WITH SUCH DELAY(S).
BUILDING SPECIFICATIONS
9 Agenda Item #9.2.
20'-10"
40'-0"
11'-9"
23'-6"
THE INFORMATION CONTAINED HEREIN IS PROPRIETARY TO VESTA HOUSING SOLUTIONS, INC DBA VESTA MODULAR, LLC. AND MAY NOT BE
SHARED WITH ANY THIRD PARTY WITHOUT THE EXPRESS WRITTEN CONSENT OF VESTA HOUSING SOLUTIONS, INC DBA VESTA MODULAR, LLC.
ERC
8/24/21
1000 Town Center, Suite 975
Southfield, MI 48075
24’ X 40’ RESTROOM /LOCKER ROOM BUILDING
1 10
Agenda Item #9.2.
39'-9"
10'-6"
17'-3"
5'-3"
4'-0"
9'-3"
10'-6" 24'-0" 5'-3"
12'-0" 5'-3"
1 2
2 2
A A
B B
C C
D D
E E
F F
8 8
7 7
6 6
5 5
4 4
3 3
2 2
1 1
NOTES:
1. FOOT PLACEMENT DIMENSIONS MUST BE VERIFIED BASED ON FIELD CONDITIONS AND ACTUAL INSTALL
2.MAXIMUM SLOPE-1:12(8.33%)
3.MAXIMUM CROSS SLOPE-1:48 (1/4''/FOOT)
4.ALL RAMPS & PLATFORMS 36'' AND OVER ELEVATION REQUIRE CROSS BRACING
5. ANCHORING TO BE DONE BY OTHERS UNLESS OTHERWISE NOTED 11 Agenda Item #9.2.
39'-9"
6'-6"
11'-3"
6'-6"
1 2
2 2
A A
B B
C C
D D
E E
F F
8 8
7 7
6 6
5 5
4 4
3 3
2 2
1 1
NOTES:
1. FOOT PLACEMENT DIMENSIONS MUST BE VERIFIED BASED ON FIELD CONDITIONS AND ACTUAL INSTALL
2.MAXIMUM SLOPE-1:12(8.33%)
3.MAXIMUM CROSS SLOPE-1:48 (1/4''/FOOT)
4.ALL RAMPS & PLATFORMS 36'' AND OVER ELEVATION REQUIRE CROSS BRACING
5. ANCHORING TO BE DONE BY OTHERS UNLESS OTHERWISE NOTED 12 Agenda Item #9.2.
4- Step Stair System
5' x 5' Platform
5' x 5' Platform
BTP
4' Ramp Section
6' Ramp Section
6' Ramp Section
A A
B B
C C
D D
E E
F F
8 8
7 7
6 6
5 5
4 4
3 3
2 2
1 1
NOTES:
1. FOOT PLACEMENT DIMENSIONS MUST BE VERIFIED BASED ON FIELD CONDITIONS AND ACTUAL INSTALL
2.MAXIMUM SLOPE-1:12(8.33%)
3.MAXIMUM CROSS SLOPE-1:48 (1/4''/FOOT)
4.ALL RAMPS & PLATFORMS 36'' AND OVER ELEVATION REQUIRE CROSS BRACING
5. ANCHORING TO BE DONE BY OTHERS UNLESS OTHERWISE NOTED 13 Agenda Item #9.2.
Third Amendment to Professional Services Agreement STH Contract: FY 2021-071 Consultant: Noll & Tam Architects
AMENDMENT #4
TO PROFESSIONAL SERVICES AGREEMENT WITH NOLL & TAM ARCHITECTS IN THE AMOUNT OF $44,923 TO STH CONTRACT NO: FY 2021-071 FOR PHASE I OF THE NAPA VALLEY COLLEGE TENANT IMPROVEMENTS AT THE CITY OF ST. HELENA FOR A TOTAL CONTRACT AMOUNT NOT-TO-EXCEED $236,483
This Third Amendment to Professional Services Agreement STH Contract: FY 2021-071 dated April 10, 2021 ("Agreement") is made as of this 10 day of May 2022 by and between the City of St. Helena, a municipal corporation ("City"), and Noll & Tam Architects ("Consultant").
RECITALS
A. On April 13, 2021, the City and Consultant entered into the Agreement for Consultant to provide professional services in connection with the project described tenant improvements at the Napa Valley College Upper Campus for Phase I; and B. On May 25, 2021, the City Council approved resolution authorizing the City Manager or designees to execute a lease regarding a portion of the Napa Valley Community College District Upper Valley Campus; and
C. Based on the required identified tenant improvements, the City and Consultant desired to amend the Agreement with the Consultant to provide additional fees for permitting the Division of State Architect; and
D. Permitting for the Division of the State Architect requires full engineering consultant drawings and construction administraton protocols that were not included in the original scope of work with Noll and Tam Architects; and
E. Amendment No. 1 was for an additional $117,622 for a total not-to-exceed amount of $158,997; and
F. Additional scope of work has been idenfied that require mechanical and electrical engineering necessary for Division of State Architect Review; and G. Amendment No. 2 was for an additional $8,580 for a total not-to-exceed amount of $167,577 and;
H. Additional work required during the permit review process with DSA has been identified, and;
I. Amendment 3 is for an additional $23,983 for a total not-to-exceed amount of $191,560 and;
J. Additional work is required for Construction Administration, including communication with DSA and;
K. Amendment 4 is for an additional $44,923 for a total not-to-exceed amount of $236,483 Agenda Item #9.2.
Third Amendment to Professional Services Agreement STH Contract: FY 2021-071 Consultant: Noll & Tam Architects
AGREEMENT
NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein contained, for good and valuable consideration, the adequacy of which is hereby acknowledged, the parties agree to amend the Agreement as follows:
1. Section 4.A. Compensation and Method of Payment, is amended to read as follows:
“Total compensation shall not exceed $236,483…”.
All other terms of the Agreement shall remain in full force and effect.
Entered as of the day and year first above stated.
CONSULTANT:
Signatures of Authorized Persons:
By: _____________________________
Print Name:_______________________
Title: ____________________________
CITY OF ST. HELENA
a Municipal Corporation
By:_________________________________
Print Name: James C. McCann
Title: Interim City Manager
APPROVED AS TO FORM:
____________________________
Ethan Walsh, City Attorney
ATTEST:
____________________________
City Clerk
Agenda Item #9.2.
St Helena City Admin and Police Offices
Amendment #4 Add service request
Noll & Tam (billing rate based on $175/hr) Hours Fee Bidding:
1. 8 $1,400
Subtotal add Bid for NT $1,400
Construction Administration
2. 26 $4,550
3. 20 $3,500
4. 182 $31,850
5. 28 $4,900
6. 6 $1,050
Subtotal 262 $45,850
!5% Contingency (written approval required) $6,878
Subtract CA Allowance from approved Amendment #1 ‐$13,845 Subtotal add CA Noll & Tam $38,883 **
Consultants
7. Bidding: Atium, Electrical‐ Bid Addendum #3 $990
8. $3,650
Subtotal add Bid and CA for Consultants $4,640
Total Amendment #4 Fee request $44,923
Notes
1. 2.
3. 4. CA services will be on a time and materials basis not to exceed the contract amount unless authorized by the City.
**Total available CA fee for Noll & Tam: ($13845 + 38,883)= $52,728 (Amendment #1 and #4)
Bidding and Construction Administrative Services
June 15, 2022.
(26) virtual construction meetings 1 hr each
(4) in person site visits (5 hrs each)
Consultant coordination, RFI's, CM assistance (estimate 7 hrs/wk) Additonal Bid Addendum #3 and
coordination of Addendum 1,2, and 3
Submittal reviews
DSA CA forms
CA: (1) Additional in person site meeting for each consultant (structural, mechanical, electrial and civil)
CA fee allowance based on a 6 month construction duration See supporting scope information attached from Noll & Tam 4/26/202 Agenda Item #9.2.
1 St Helena City Administration and Police Offices at Napa Valley College Noll & Tam Request for Amendment #4
Extended Construction Administration Services
June 15, 2022
Background
This Amendment #4 additional fee request is for additional bid phase tasks and the extension of Construction Administration Services beyond our original contract assumptions. Per our Amendment #1 dated June 3rd, 2021, an allowance for CA services was estimated to be $13,845 for Noll & Tam, to be revisited prior to construction and billed on a Time and Materials basis. Bid Addendum #3 and CA assumptions are as follows:
1. Bid Addendum #3 for modifications to security system devices by Atrium, electrical engineers, and coordination of Bid Addendum, 1, 2 and 3 by Noll & Tam.
2. The estimated duration of the Construction Phase is extended from 3‐1/2 months to 6 months. (26 weeks). We understand that the construction may require some phasing with first priority given to Administration and other special sequencing considerations given to Police.
3. The number of estimated virtual construction administration meetings will be increased from (10) to (26) weekly meetings‐ approx. 1 hour per meeting. The first construction kick‐off meeting will be virtual.
4. (2) in‐person site visits per phase, most likely one for the substantial completion punch list and one for the final back punch list to confirm completion of all items. Each site meeting is allotted 5 hours including travel time. This would be a total of (4) in‐person site visits for both Admin and Police phases.
5. Per our original CA scope, our tasks will include
Submittal Reviews
Respond to contractor design questions (RFI’s)
Coordination of required DSA forms, including Submittal of DSA form for completion of project (Form DSA‐6)
5. Exclusions
CA meeting notes will be the responsibility of the contractor or CM Final record drawings will be the responsibility of the contractor Issuing of Contractor change orders, contractor payment applications, or other administrative tasks the responsibility of the CM
6. We are also adding an allowance for (1) additional site meeting per consultant (structural, mechanical, electrical and civil)
Agenda Item #9.2.
[Greystone West NVC TI CM]
AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT, made and entered into on June 28, 2022 by and between the City of St. Helena, located in the County of Napa, State of California (City), and Greystone West (Consultant).
RECITALS:
A. City desires to employ Consultant to furnish professional services in connection with the project described as Construction Management for the NVC Tenant Improvements.
B. Consultant has represented that Consultant has the necessary expertise, experience, and qualifications to perform the required duties.
NOW, THEREFORE, in consideration of the mutual premises, covenants, and conditions herein contained, the parties agree as follows:
SECTION 1 – BASIC SERVICES
Consultant agrees to perform the services set forth in Exhibit A, “Scope of Services” and made part of this Agreement.
SECTION 2 – ADDITIONAL SERVICES
Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement that are in addition to or outside of those set forth in this Agreement or Exhibit A, “Scope of Services” (the “Services”), unless such additional Services and compensation are authorized in advance and in writing by the City Council or City Manager of the City.
SECTION 3 – TIME FOR COMPLETION
The time for completion of Services shall be as identified in Exhibit A, “Scope of Services”. The parties expressly agree that time is of the essence in the performance of this Agreement.
SECTION 4 – COMPENSATION AND METHOD OF PAYMENT
A. Subject to any limitations set forth in this Agreement, City agrees to pay consultant the amount specified in Exhibit A, “Compensation” attached hereto and made a part hereof. Total compensation shall not exceed $70,566.73 unless additional compensation is approved in accordance with Section 2.
B. Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories if applicable: labor (by sub-category), travel, materials, equipment, supplies, subconsultant contracts, and miscellaneous expenses. Each original invoice furnished shall include the expenses incurred during the preceding month, the cumulative Agreement amount, Agenda Item #9.2.
[Greystone West NVC TI CM]
and the amount remaining on the Agreement. City shall independently review each invoice submitted to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. If no charges or expenses are disputed, the invoice shall be approved, and City will use its best efforts to cause Consultant to be paid within 30 days of receipt of invoice. If the City disputes any charges or expenses, the City will return the original invoice to Consultant for correction and resubmission. If the City reasonably determines, in its sole judgment, that the invoiced charges and expenses exceed the value of the Services performed to date and that it is probable that the Agreement will not be completed satisfactorily within the contract price, City may retain all or a portion of the invoiced charges and expenses.
Within thirty (30) days of satisfactory completion of the project, City shall pay the retained amount, if any, to Consultant.
C. Payment to the Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.
SECTION 5 – STANDARD OF PERFORMANCE
A. Consultant represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent and professional manner. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services described herein. In meeting its obligations under this Agreement, Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons in the same or similar geographical area engaged in providing Services similar to those required of Consultant under this Agreement.
B. In order to induce City to enter into this Agreement, Consultant represents that it is duly organized, existing and in good standing under applicable state law; Consultant is licensed to perform all aspects of the Services; Consultant will employ only persons and Subconsultants with all required licenses and certifications; that Consultant is duly qualified to conduct business in the State; that Consultant has duly authorized the execution, delivery and performance of this Agreement and the Services to be performed herein; and that the Agreement does not violate or create a default under any instrument, agreement, order or decree binding on Consultant.
SECTION 6 – INSPECTION AND FINAL ACCEPTANCE
City may inspect and accept or reject any of Consultant’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Consultant’s work within sixty (60) days after submitted to City, unless the parties mutually agree to extend such deadline. City shall reject work by a timely written explanation, otherwise Consultant’s work shall be deemed to have been accepted. City’s acceptance shall be conclusive as to such work except with respect to latent defects and fraud. Acceptance of any of Consultant’s work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, the sections pertaining to indemnification and insurance.
Agenda Item #9.2.
[Greystone West NVC TI CM]
SECTION 7 – INSURANCE REQUIRED
Consultant 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 Consultant, its agents, representatives, or employees, as indicated:
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).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
3. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.
B. Minimum Limits of Insurance. Consultant shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations, as applicable. If Commercial General Liability Insurance or other form with a 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 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.
3. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.
C. Professional Liability Insurance. When Consultant under this Agreement is duly licensed under California Business and Professions Code as an architect, landscape architect, environmental engineer or other professional engineer, or land surveyor (“design professional”), Consultant shall maintain at least $2,000,000 of professional liability insurance. When Consultant is not a design professional, Consultant shall maintain at least $1,000,000 of professional liability insurance combined single limit for each occurrence, insuring against professional errors and omissions in the Services performed by Consultant under this Agreement, including, without limitation, claims for negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advise arising out of, resulting from, or in connection with Services performed by Consultant under this Agreement.
D. Excess Limits. If Consultant maintains higher limits than the minimums shown above, City requires and shall be entitled to coverage for the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
E. Primary Coverage. For any claims related to this contract the Consultants insurance coverage shall be primary insurance as respects to 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 Consultants insurance and shall not contribute with it.
Agenda Item #9.2.
[Greystone West NVC TI CM]
F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions of $25,000 or greater must be declared to and approved by the City.
G. 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 agent, officers, officials, employees, and volunteers are to be covered as additional insured as respects: liability arising out of work or operations performed by the Consultant or Consultant’s subconsultants; or automobile owned, leased, hired or borrowed by the Consultant.
2. For any claims related to Consultant’s conduct while performing the work of this project, the Consultant’s insurance coverage shall be primary insurance as respects the City, its agents, officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its agents, officers, officials, employees or volunteers shall be excess of the Consultant’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 cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City.
4. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subsection (b) of Section 2782 of the Civil Code.
H. Waiver of Subrogation. Consultant’s commercial general liability, automobile liability, workers’ compensation, and employer’s liability policies shall be endorsed with a waiver of subrogation. The insurance company, in its endorsement, agrees to waive all rights of subrogation against the City, its agents, officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the City.
I. The 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.
J. Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on forms that conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.
SECTION 8 – INDEMNIFICATION
A. To the fullest extent allowed by law (including without limitation California Civil Code Sections 2782 and 2782.8), as may be applicable, Consultant shall indemnify, defend, and hold harmless City, its agents, officers, officials, employees, representatives, and volunteers from any and all claims, demands, suits, loss, damages, injury, and/or liability (including any and all costs and expenses in connection therewith, including legal fees and expert witness costs) Agenda Item #9.2.
[Greystone West NVC TI CM]
(collectively, “Liabilities”), incurred by reason of any negligent or otherwise wrongful act or omission of Consultant, its officers, agents, employees, subconsultants, and subcontractors, or any of them, under or in connection with this Agreement; and Consultant agrees at its own cost, expense and risk to defend any and all claims, actions, suits, or other legal proceedings brought or instituted against City, its agents, officers, officials, employees and volunteers, or any of them, arising out of, pertaining to, or relating to such negligent or otherwise wrongful act or omission, and to pay and satisfy any resulting judgments.
B. When Consultant under this Agreement is duly licensed under California Business and Professions Code as an architect, landscape architect, professional engineer, or land surveyor (i.e., a “design professional,” pursuant to Civil Code § 2782.8(c)), the provisions of this section regarding Consultant’s duty to defend and indemnify apply only to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant.
C. If any action or proceeding is brought against Indemnitees by reason of any of the matters against which Consultant has agreed to indemnify Indemnitees as provided above, Consultant, upon notice from City, shall defend Indemnitees at Consultant’s expense by counsel acceptable to City, such acceptance not to be unreasonably withheld. Indemnitees need not have first paid for any of the matters to which Indemnitees are entitled to Indemnification in order to be so indemnified. The insurance required to be maintained by Consultant shall ensure Consultant’s obligations under this section, but the limits of such insurance shall not limit the liability of Consultant hereunder. The provisions of this section shall survive the expiration or earlier termination of this Agreement.
D. The provisions of this section do not apply to claims to the extent occurring as a result of the City’s sole negligence, active negligence, or willful acts or misconduct.
E. Duty to Cooperate. Each party shall notify the other party immediately in writing of any claim or damage related to activities or Services performed under this Agreement. The parties shall cooperate with each other in the investigation and disposition of all Liabilities arising out of the activities or Services under this Agreement.
F. In the event that Consultant executes any subconsulting agreements in connection with the Services performed under this Agreement, Consultant shall place in all such subconsulting agreements, and cause its subconsultants to agree to, the indemnity and insurance obligations in favor of City and other Indemnitees, as provided herein, in the exact form and substance of those contained in this Agreement.
SECTION 9 – INDEPENDENT CONTRACTOR STATUS
A. Consultant is and shall at all times remain a wholly independent contractor and not an officer, employee or agent of City. Consultant shall have no authority to bind City in any manner or to incur an obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City.
B. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City, nor any Agenda Item #9.2.