Agenda packet — Suisun City City Council, May 23, 2023 (part 1 of 2)

CITY COUNCIL
Alma Hernandez, Mayor
Princess Washington, Mayor Pro Tem
Jenalee Dawson, Member
Marlon L Osum, Member
Amit Pal, Member

CITY COUNCIL MEETING

A G E N D A

REGULAR MEETING OF THE SUISUN CITY COUNCIL,

SUISUN CITY COUNCIL ACTING AS SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY OF THE CITY OF SUISUN CITY,

AND HOUSING AUTHORITY
TUESDAY, MAY 23, 2023
6:30 PM

Suisun City Council Chambers - 701 Civic Center Boulevard - Suisun City, California

CITY COUNCIL MEETINGS ARE HELD IN-PERSON

PUBLIC PARTICIPATION IS ALSO AVAILABLE VIA ZOOM
ZOOM MEETING INFORMATION:

WEBSITE: https://zoom.us/join
WEBINAR ID:
895 2084 7367
CALL IN PHONE NUMBER: (707) 438-1720

REMOTE PUBLIC COMMENT IS AVAILABLE FOR THE CITY COUNCIL MEETING BY EMAILING [email protected] (PRIOR TO 6 PM), VIA WEBSITE, OR ZOOM CALL IN PHONE NUMBER (707) 438-1720

(If attending the meeting via phone press *9 to raise your hand and *6 to unmute/mute for public comment.)

(Next Ord. No. – 801)
(Next City Council Res. No. 2023 – 51)
Next Suisun City Council Acting as Successor Agency Res. No. SA2023 - 03) (Next Housing Authority Res. No. HA2023 – 02)

ROLL CALL
Council /Board Members
Pledge of Allegiance
Invocation

CONFLICT OF INTEREST NOTIFICATION
(Any items on this agenda that might be a conflict of interest to any Councilmembers / Boardmembers should be identified at this time.)

1 1
City Manager Update - (Folsom: [email protected]).

2 Mayoral and Councilmember Appointments of Commissions and Committees - (Hernandez:
[email protected]).
a
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Approval of Appointments to the Environment & Climate Community Advisory Committee.
b
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Approval of Appointments to the Public Safety & Emergency Management Community Advisory Committee.
c
.

Approval of Appointment to the General Tax Oversight Committee.

3 Presentation of Proclamations - (Hernandez: [email protected]). a
.

Proclamation Proclaiming the Week of May 21-27, 2023 as Public Works Week. b
.

Proclamation Proclaiming the Month of May 2023 as Asian American and Pacific Islander Heritage Month.

4 Council/Board Member Updates.

City Council

5 Initiate and Provide Intent to the Levy and Collection of Assessments for the City’s Landscaping & Lighting Districts: - (Vue: [email protected]).

a
.

Council Adoption of Resolutions No. 2023-___: Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation and Filing of the Engineer’s Report Related to the Suisun City Maintenance Assessment Districts for Fiscal Year 2023-24.
b
.

Council Adoption of Resolutions No. 2023-___: Declaring its Intention to Levy and Collect Assessments Within the City’s Maintenance Assessment Districts for Fiscal Year 2023-24 and Announcing That the Associated Public Hearing Will Be Held on June 20, 2023.

REPORTS (Informational items only.)

PRESENTATION/APPOINTMENTS
(Presentations, Awards, Proclamations, Appointments).

PUBLIC COMMENT
(Request by citizens to discuss any matter under our jurisdiction other than an item posted on this agenda per California Government Code §54954.3. Comments are limited to no more than 3 minutes unless allowable by the Mayor/Chair.

Speaker cards are available on the table near the entry of the meeting room and should be given to the City Clerk. By law, no prolonged discussion or action may be taken on any item raised during the public comment period, although informational answers to questions may be given and matters may be referred for placement on a future agenda.)

COUNCIL COMMENTS

CONSENT CALENDAR
Consent calendar items requiring little or no discussion may be acted upon with one motion.

2 6
Initiate and Provide Intent to the Levy and Collection of Assessments for the McCoy Creek Parking Benefit Assessment District: - (Vue: [email protected]).

a
.

Council Adoption of Resolution No. 2023-___: Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation and Filing of the Engineer’s Report Related to the McCoy Creek Parking Benefit Assessment District for Fiscal Year 2023-24; and
b
.

Council Adoption of Resolution No. 2023-___: Declaring Its Intention to Levy and Collect Assessments Within the McCoy Creek Parking Benefit Assessment District for Fiscal Year 2023-24.

7 Council Adoption of Ordinance No. 799: An Ordinance of the City Council of the City of Suisun City Levying Special Tax Within City of Suisun City Communities Facilities District No. 2 (Municipal Services, Including Certain Annexation Territory) - (Lawler Mixed Use Project - Introduced on May 2, 2023) - (Vue: [email protected]).

8 Council Adoption of Ordinance No. 800: An Ordinance of the City Council of the City of Suisun City Levying Special Tax Within City of Suisun City Communities Facilities District No. 2 (Municipal Services, Including Certain Annexation Territory) - (Marina Village Apartments - Introduced on May 2, 2023) - (Vue: [email protected]).

9 Council Adoption of Resolution No. 2023-___: Authorizing the City Manager to Execute a Contract Amendment on the City’s Behalf with Coastland Civil Engineering to Provide Further City Engineer Services on the Buzz Oates Private Development Projects - (Vue:
[email protected]).

10 Council Adoption of Resolution No. 2023___: Authorizing the City Manager to Enter into a Contract Agreement on the City’s Behalf with S. H. Mechanical for the Citywide Heating, Ventilation and Air Conditioning (HVAC) Maintenance and Repair Contract - (Vue:
[email protected]).

11 Council Adoption of Resolution 2023-___: Authorizing the City Manager to Enter into a Construction Contract on the City’s Behalf with Dryco Construction, Inc. for the 2023 Slurry Seal Project - (Vue: [email protected]).

12 Council Adoption of Resolution No. 2023-____: A Resolution of the City Council of the City of Suisun City Accepting the Annual Comprehensive Financial Report (ACFR), the Report of Federal Awards in Accordance with OMB Circular A-133, and the Measure S General Transactions and Use Tax Audit for Fiscal Year 2021-2022 - (Deol:
[email protected]).

13 Council Adoption of Resolution No. 2023-__: Authorizing the City Manager to execute a twenty year lease agreement with the State of California State Lands Commission for the continued operation, general use, and maintenance of the Suisun City Marina - (Lofthus:
[email protected]).

14 Council Adoption of Resolution No. 2023-___: Authorizing the City Manager or Deputy City Manager to Submit a Proposal for the Proposition 64 Public Health and Safety Grant Program and Sign a Grant Agreement with the California Board of State and Community Corrections - (Lofthus: [email protected]).

3 15
Council Adoption of Resolution No. 2023-___: Approving a Second Amendment to the Memorandum of Understanding (MOU) Between the City of Suisun City and the Suisun City Employees’ Association Effective July 1, 2021 through June 30, 2023 to Amend MOU Provisions Pertaining Compensation - (Penland: [email protected]).

16 Council Adoption of Resolution No. 2023-___ - Approving a Third Amendment to the Memorandum of Understanding (MOU) Between the City of Suisun City and the Suisun City Management & Professional Employees’ Association (SCMPEA) Effective July 1, 2021 through June 30, 2023 to Amend MOU Provisions Pertaining to Compensation - (Penland:
[email protected]).

17 Council Adoption of Resolution No. 2023-__ Amending the Citywide Salary Schedule to Implement the Second Amendment to the Suisun City Employees’ Association (SCEA) MOU 2021-23 and the Third Amendment to the Suisun City Management and Professional Employees’ Association (SCMPEA) MOU 2021-23 - (Penland: [email protected]).

18 Council Adoption of Resolution No. 2023-____: Authorizing the Chief of Police, or his designee, to Execute a Contract to Receive and Administer funding through the Boating Safety and Enforcement Financial Aid Program from the California Department of Boating and Waterways - (Roth: [email protected]).

19 Council Adoption of Resolution No. 2023-___: Approving a Six (6) Month Waiver of the Marina Boat Slip Fee - (Folsom: [email protected]).

20 Council Adoption of Resolution 2023-___: Approving the Settlement Agreement for Purchase and Sale of Certain Real Property Under Threat of Condemnation - (City Attorney).

Joint City Council / Suisun City Council Acting as Successor Agency / Housing Authority

21 Council/Agency/Authority Approval of the Minutes of the Regular and/or Special Meetings of the Suisun City Council, Suisun City Council Acting as Successor Agency, and Housing Authority held on April 4, 2023, May 2, 2023, and May 9, 2023 – (Skinner:
[email protected]).

Joint City Council / Suisun City Council Acting as Successor Agency

22 Council/Agency Approval of April 2023 Payroll Warrants in the Amount of $635,415.30 and Council/Agency Approval of the April 2023 Accounts Payable Warrants in the Amount of $1,046,698.64 - (Finance).

City Council

23 Council Approval of Staff recommendation to approve the Suisun City Transportation Development Act (TDA) Claim amount of $1.5 million for FY 2023-24 which includes Suisun Microtransit, Maintenance of the Train Depot, Solano Transportation Authority (STA) Loan Repayment, Planning, Solano Express and Capital Replacement - (Brandon Thomson, Transit Mobility Coordinator).

PUBLIC HEARING
NONE

GENERAL BUSINESS

4 24
Discussion and direction to Staff regarding revisions and updates to the City Council Norms & Procedures, and relevant policies and municipal code sections - (City Attorney).

Successor Agency

25 Successor Agency Adoption of Resolution SA 2023-___: Resolution of the Successor Agency to the Redevelopment Agency of the City of Suisun City approving the agreement for the Purchase and Sale of Real Property and Joint Escrow Instructions with Larson 1240, LLC for the transfer of property located at 1240 Kellogg Street, City of Suisun City (Solano County Assessor’s Parcel Number 0032-200-330) - (Bermudez: [email protected]).

26 Non-Discussion Items.

REPORTS: (Informational items only)

ADJOURNMENT

Public Access To Agenda Documents
A complete packet of information containing staff reports and exhibits related to each item for the open session of this meeting, and provided to the City Council, are available for public review at least 72 hours prior to a Council /Agency/Authority Meeting at Suisun City Hall 701 Civic Center Blvd., Suisun City. Agenda related writings or documents provided to a majority of the Council/Board/Commissioners less than 72 hours prior to a Council/Agency/Authority meeting related to an agenda item for the open session of this meeting will be made available for public inspection during normal business hours. An agenda packet is also located at the entrance to the Council Chambers during the meeting for public review. The city may charge photocopying charges for requested copies of such documents. To the extent feasible, the agenda packet is available for online public viewing on the City’s website: https://www.suisun.com/Government/City-Council/Agendas

The City Council/Agency/Authority hopes to conclude its public business by 10:00 p.m. No new items will be taken up after 10:00 p.m., unless so moved by a majority of the City Council, and any items remaining will be agendized for the next meeting. The agendas have been prepared with the hope that all items scheduled will be discussed within the time allowed.

Accommodations
If you require an accommodation to participate in this meeting, please contact the City Clerk at (707) 421-7302 or [email protected]. The City’s reasonable accommodation policy is available for review on the City’s website at www.suisun.com/government/city-council/, you may request an electronic copy or have a copy mailed to you.

Please note that for accommodations that are not readily available, you must make your request as soon as you can prior to the time of the meeting.

Decorum
All participants are expected to conduct themselves with mutual respect. Conduct that disrupts meetings will be addressed in accordance with Section 54957.95 of the Government Code.

Ordinances
Ordinances are city laws contained in the Suisun City Municipal Code. Enacting a new city law or changing an existing one is a two-step process. Government Code 36934 provides, except when, after reading the title, further reading is waived by regular motion adopted by majority vote all ordinances shall be read in full either at the time of introduction or passage; provided, however, that a reading of the title or ordinance shall not be required if the title is included on the published agenda and a copy of the full ordinance is made available to the public online and in print at the meeting prior to the introduction or passage. 5 Certification Of Posting
Agendas for regular and special meetings are posted in accordance with the Brown Act at Suisun City Hall, 701 Civic Center Boulevard, Suisun City, CA. Agendas may be posted at other Suisun City locations including:

Suisun City Fire Station, 621 Pintail Drive, Suisun City, CA; Joe Nelson Center, 611 Village Drive, Suisun City, CA;
Harbor Master Office, 800 Kellogg Street, Suisun City, CA.

I, Donna Pock, Deputy City Clerk for the City of Suisun City, declare under penalty of perjury that the above agenda was posted and available for review, in compliance with the Brown Act. 6 AGENDA ITEM NO. 5

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Initiate and Provide Intent to the Levy and Collection of Assessments for the City’s Landscaping & Lighting Districts:

a
.

FISCAL IMPACT:

There would be no fiscal impact from this action.

STRATEGIC PLAN:

Provide Good Governance.

BACKGROUND:

The Landscaping & Lighting Districts (LLDs) also referred to as Maintenance Assessment Districts (“Districts”) are important components of the City’s budget, covering costs for landscape maintenance and lighting within the individual Districts and contributing towards the City’s dredging program. Over $1 million is generated annually in assessments (Non-General Fund).

The assessments are collected for the Districts by the Solano County Auditor/Controller, via the secured property tax bills for the assessable parcels within each of the District boundaries. For Fiscal Year 2023-24, maximum assessments for the individual Districts will vary from $75.00 to $4,688.27 per equivalent dwelling unit (EDU).

With the exception of Heritage Park, Montebello Vista, and Marina Dredging, the Districts are subject to an automatic increase/inflator which is based on the Annual Construction Cost Index (CCI) as published in the April issue of the Engineering News Record magazine. This year the annual increase was 1.430% over the prior year. The total assessments collected will be approximately $1,502,816.

STAFF REPORT:

If adopted, the resolutions associated with this Staff Report initiate the annual process of levying assessments on the parcels within the City’s Districts and order the preparation of the annual Engineer’s Report. The City has eight (8) Districts: Blossom, Heritage Park, Lawler Ranch, Marina Village Channel Improvement, Montebello, Peterson Ranch, Railroad Avenue, and Victorian Harbor. Victorian Harbor is comprised of five (5) individual Districts (A, B, C-D, E, and F) and is also assessed for dredging. Six (6) of the Districts were created in accordance with the Landscaping and Lighting Act of 1972. Two Districts, Marina Village and Victorian Harbor, were created in accordance with the Municipal Improvement Act of 1913. Both Acts require the preparation of annual Engineer’s Reports for each District, including for the individual Victorian Harbor Districts. The Preliminary Engineer’s Report for Fiscal Year 2023-24 is included with this Staff Report as Attachment #4.

During the month of March 2023, staff conducted annual meetings for Blossom, Heritage Park, Lawler 7 Ranch, Montebello Vista, Peterson Ranch, and Victorian Harbors (A, B, C-D, E, and F). At these meetings, staff discusses District funding, past year accomplishments, the maintenance schedule, plans for the coming year, and receives any resident concerns or requests for the coming year.

The annual meetings have been held on a regular basis over the last twelve years. Note that the City is not required by law and/or per the District formation documents to hold these annual meetings each year. The City continues to hold these annual meetings as a way to facilitate better communication and transparency between the attending residents of each District and City staff.

Three (3) Districts continue to warrant a specific update on their status as noted below.

Montebello Vista District (MBV)
There have been no significant changes in the MBV District. It continues to endure financial hardship, as the District does not generate sufficient revenue to meet basic funding requirements needed to cover basic maintenance costs for Montebello Vista Park, the medians at the entrance of the neighborhood, and their streetlights. With the increase in water rates the District’s financial health is no longer plateauing as in years past. Water reductions, along with service reductions, may be necessary to keep this District from running into the red. Staff time and budget over the next couple of fiscal years will be closely monitored over the next few fiscal years. This will ensure the staff time costs are being accurately reflected in the District Public Works Staff Time charge as well as getting a better picture of water costs at the new rates and their impact on the budget. It is possible that service level reductions may be necessary at some point in the future. The Junior Giants Baseball Program continues to operate out of this park from roughly June to August.

The City has been allocated $1.8M for the Montebello Vista Park Revitalization Project (Project). The Project currently includes converting a section of the park's existing turf into a multi-sport field that can accommodate soccer, football, rugby, etc., the installation of restrooms (opened on a rental basis), and the existing baseball field will be converted to to an artificial surface. This Project is currently in the process of hiring a professional landscaping design firm to prepare plans, specifications and cost estimates (PS&E).

Heritage Park
Like Montebello Vista, the Heritage Park (District) continues to have a static revenue stream which is insufficient to sustain a very basic level of landscape maintenance activities for the District. The lack of funding, under the City-wide landscape maintenance contract, had resulted in dramatic reductions in landscape maintenance, no litter pickup, and inability to address most irrigation system failures.

Now that the District’s maintenance is being handled by the LLD-Only crew, the District is starting to look a bit better with the in-house crew being able maintain additional areas that were not being maintained as part of the landscape contract. The start-up expenses associated with bringing the landscape maintenance in-house are greatly impacting the District’s already negative beginning balance.

Peterson Ranch
For the last few years, the Peterson Ranch District (District) had been teetering on the edge of financial soundness and had accumulated a negative beginning balance. This is primarily due to the large increase in the landscape contract cost (New Image and LandCare) and the needed tree removals. This District has a large overall area of turf, native grass areas, trees, and heavily planted medians/planters, including the center median on Walters Road which is also difficult and dangerous to access for maintenance. Turf is very expensive to maintain, being the most expensive landscape feature to 8 maintain. Services with LandCare and irrigation were severely cut to meet the available budget and resulted in noticeable negative impacts on the landscape aesthetics within the District. The new in-house crew continues to make inroads in getting a handle on this large District’s maintenance needs. The District is beginning to slowly move into a better financial position since bringing their maintenance in- house.

With the agenda items being presented tonight, the City Council is being asked to do the following as part of the Consent Calendar: initiate the levy process, consider for approval the Preliminary Engineer’s Reports for all Districts, declare the intent to levy and collect assessments for all Districts, and establish June 20, 2023, at 6:30 p.m. for the required Public Hearing.

This meeting does not provide final approval of the Fiscal Year 2023-24 levy amounts and does not trigger the actual assessments.

At the Public Hearing, Council should allow property owners the opportunity to address the Council concerning their District, the Council will approve or amend the Preliminary Engineer’s Report and order the levy and collection of the assessments. Our consultant will then prepare the Assessor Parcel Assessment Report to be sent to the County prior to the Assessor’s deadline.

STAFF RECOMMENDATION:

It is recommended that the City Council adopt:

a
.

Resolutions No. 2023-___: Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation and Filing of the Engineer’s Report Related to the Suisun City Maintenance Assessment Districts for Fiscal Year 2023-24. b
.

Resolution 2023-___: Declaring its Intention to Levy and Collect Assessments Within the City’s Maintenance Assessment Districts for Fiscal Year 2023-24 and Announcing That the Associated Public Hearing Will Be Held on June 20, 2023.

DOCUMENTS ATTACHED:
1 .

Resolution No. 2023-___: Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation and Filing of the Engineer’s Report Related to the Suisun City Maintenance Assessment Districts for Fiscal Year 2023-24. 2 .

Resolution No. 2023-___: Declaring its Intention to Levy and Collect Assessments Within the City’s Maintenance Assessment Districts for Fiscal Year 2023-24 and Announcing That the Associated Public Hearing Will Be Held on June 20, 2023. 3 .

Table Summarizing Proposed District Assessments for Fiscal Year 2023-24. 4 .

Preliminary Engineer’s Reports Fiscal Year 2023-24 (due to size the attachment is available online:
https://www.suisun.com/files/sharedassets/suisuncity/government/clerk/documents/additional- packet-items/preliminary-engineers-reports-fiscal-year-23-24.pdf). The report includes the Fiscal Year 2023-24 Parcel Listings.
5 .

District Maps

PREPARED BY:

Amanda Dum, Management Analyst II
REVIEWED BY:

Nouae Vue, Public Works Director
APPROVED BY:

Greg Folsom, City Manager

9 ATTACHMENTS:
1 Resolution Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation anf Filing of the Engineer's Report.pdf
2 Resolution Declaring its Intention to Levy and Collect Assessments Within the City's Maintenance Assessment Districts.pdf
3 Table Summarizing Proposed District Assessments for FY 23-24.pdf 5 District Maps.pdf
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28 RESOLUTION NO. 2023-___
A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

INITIATING PROCEEDINGS FOR THE ANNUAL LEVY AND COLLECTION OF

ASSESSMENTS AND ORDERING THE PREPARATION AND FILING OF THE ENGINEER’S REPORT RELATED TO THE SUISUN CITY MAINTENANCE ASSESSMENT DISTRICTS FOR FISCAL YEAR 2023-24
W
HEREAS, the City Council has by previous Resolutions formed and levied annual assessments for the Blossom Maintenance Assessment District, Heritage Park Maintenance Assessment District, Lawler Ranch Maintenance Assessment District, Marina Village Channel Improvement District, Montebello Vista Maintenance Assessment District, Peterson Ranch Maintenance Assessment District, Railroad Avenue Maintenance Assessment District and Victorian Harbor Maintenance Assessment District (hereafter referred to as the “Districts”), pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) and the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code (commencing with Section 10000) (hereafter referred to as the “Acts”) that provide for the levy and collection of assessments for the City of Suisun City to pay the maintenance and services of all improvements and facilities related thereto; and, WHEREAS, the City Council wishes to initiate proceedings to provide for the levy and collection of assessments for Fiscal Year 2023-24 in order to provide for the nec essary costs and expenses pertaining to the maintenance of the improvements within the Districts.

WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the Districts and the preparation and filing of an Annual Engineer’s Report (the “Report”) with the City Clerk in accordance with the Acts.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY

THE CITY COUNCIL FOR THE DISTRICTS, PURSUANT TO THE ACTS, AS FOLLOWS:

Section 1 The City Council hereby orders NBS to prepare and file with the City Clerk the Report concerning the levy and collection of assessments for the Districts for the Fiscal Year commencing July 1, 2023, and ending June 30, 2024, in accordance with the Acts.

Section 2 The improvements within the Districts may include operation, maintenance, and servicing of landscaping, street lighting, channel maintenance, parks, median island landscaping, alleyway landscaping, hardscape, sound walls, and appurtenant facilities within the boundaries of the Districts. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a healthy, vigorous and satisfactory condition. The improvements within the Districts are outlined in the Report, which provide details of all improvements
Section 3 There will be no changes to the improvements and services to be provided for Fiscal Year 2023-24.
11 Resolution No. 2023-
Adopted May 23, 2023

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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Suisun City held on Tuesday the 23rd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 23rd day of May 2023.

Anita Skinner
City Clerk

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28 RESOLUTION NO. 2023-___
A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS WITHIN THE CITY’S MAINTENANCE ASSESSMENT DISTRICTS FOR
FISCAL YEAR 2023-24 AND ANNOUNCING THAT THE ASSOCIATED PUBLIC HEARING WILL BE HELD ON JUNE 20, 2023
W
HEREAS, the City Council has by previous Resolutions formed and levied annual assessments for the Blossom Maintenance Assessment District, Heritage Park Maintenance Assessment District, Lawler Ranch Maintenance Assessment District, Marina Village Channel Improvement District, Montebello Vista Maintenance Assessment District, Peterson Ranch Maintenance Assessment District, Railroad Avenue Maintenance Assessment District and Victorian Harbor Maintenance Assessment District (hereafter referred to as the “Districts”), pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) and the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code (commencing with Section 10000) (hereafter referred to as the “Acts”); and,
WHEREAS, the City Council pursuant to the provisions of the Act did by previous Resolution, order the preparation of an annual Engineer’s Report for the Maintenance Districts.

WHEREAS, NBS has filed with the City Clerk the Annual Engineer’s Report (the “Report”) concerning the cost of maintaining the improvements in such Districts for Fiscal Year 2023-24; and,
WHEREAS, this City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with the Districts, each and all of the budget items and documents as set forth therein, and is satisfied that the levy amounts, on a preliminary basis, have been assessed in accordance with the special benefit received from the improvements, operation, maintenance and services to be performed within the Districts, as set forth in said Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY

THE CITY COUNCIL FOR THE DISTRICTS, PURSUANT TO THE ACTS, AS FOLLOWS:

Section 1 Engineer of Record: City of Suisun City Public Works Director will be the Engineer of Work for purposes of the Districts.

Section 2 Intention: The City Council hereby declares its intention to levy and collect assessments within the Districts pursuant to the Act for Fiscal Year 2023-24.

Section 3 Engineer’s Report: The Report, as presented, is hereby approved on a preliminary basis and ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. Reference is made to the Report for a full and detailed description of the improvements to be maintained, the boundaries of the Districts and the proposed assessments upon assessable lots and parcels of land within the Districts. 13 Resolution No. 2023-
Adopted May 23, 2023

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Section 4 Description of Improvements: The improvements within the Districts may include operation, maintenance, and servicing of landscaping, street lighting, channel maintenance, parks, medi an island landscaping, alleyway landscaping, hardscape, sound walls, and appurtenant facilities within the boundaries of the Districts. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a healthy, vigorous and satisfactory condition. For a full and detailed description of the improvements, please refer to the Engineer’s Report on file with the City Clerk.

Section 5 Proposed Assessment Amounts: For Fiscal Year 2023-24, the proposed assessments are outlined in the Report which details any changes or increases in the annual assessment and is on file with the City Clerk.

Section 6 Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the Districts in accordance with Chapter 3, Section 22626 of the Act.

Section 7 Notice: The City shall give notice of the time and place of the Public Hearing to all property owners within the Districts by causing the publishing of this Resolution once in the local newspaper, not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this resolution on the official bulletin board customarily used by the City Council for the posting of notices. Any interested person may file a written protest with the City Clerk prior to the conclusion of the Public Hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the Public Hearing all interested persons shall be afforded the opportunity to hear and be heard.

Section 8 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 20, 2023, at 6:30 p.m. or as soon thereafter as feasible in the City Council Chambers located at 701 Civic Center Boulevard, Suisun City.

Section 9 That the City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation of the Report.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Suisun City held on Tuesday the 23rd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 23rd day of May 2023.

Anita Skinner
City Clerk

14 1.43%
# of
Parcels &
EDU's
NEW

PROPOSED
LEVY – FY23-
24 (Assessment
Per EDU)

ENR CCI
(1.43%)
Increase
FY23-24
FY22-23
(Assessment
Per EDU)
First Year
Assessed
113 $206.60 $2.91 $203.69 92/93
759 $192.64 $0.00 $192.64 92/93
1,304.30 $321.10 $4.53 $316.57 90/91
25 $1,127.68 $0.00 $1,127.68 95/96
16 $1,199.92 $0.00 $1,199.92 95/96
1 $4,688.27 $0.00 $4,688.27 95/96
486 $75.00 $0.00 $75.00 89/90
605 $440.86 $6.22 $434.64 3-Feb
2 $4,631.80 $65.33 $4,566.47 91/92
94 $343.45 $4.84 $338.61 94/95
94 $952.28 $13.43 $938.85 94/95

20.95 $343.45 $4.84 $338.61 94/95

20.95 $952.28 $13.43 $938.85 94/95
119.99 $343.45 $4.84 $338.61 94/95
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27 THIS PAGE INTENTIONALLY LEFT BLANK
28 AGENDA ITEM NO. 6

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Initiate and Provide Intent to the Levy and Collection of Assessments for the McCoy Creek Parking Benefit Assessment District:

a
.

Council Adoption of Resolution No. 2023-___: Declaring Its Intention to Levy and Collect Assessments Within the McCoy Creek Parking Benefit Assessment District for Fiscal Year 2023-

24. FISCAL IMPACT:

There would be no fiscal impact from this action.

STRATEGIC PLAN:

Provide Good Governance.

BACKGROUND:

As a condition of approval for the McCoy Creek Development Project (Grey Hawk), the developer was required to create a Parking Assessment District (PAD) to offset long-term maintenance costs associated with the on-street parking within the public right-of-way. The number of on-street parking spaces provided is seventy-five (75). This parking serves both residential and commercial mixed-use parking demands. Both the residential and commercial components of the mixed-use development are required to pay for the long-term maintenance of the on-street parking.

Utilizing the public right-of-way for this mixed-use development is a deviation from the City’s requirement for off-street parking and, therefore, an assessment for maintenance was established.

The boundaries of this District are described as within the area bounded by McCoy Creek Way to the north, Gray Hawk Lane to the south, Crescent Elementary School to the east and Grizzly Island Road to the west. This District consists of mixed parcel types and includes seventy-two and four tenths (72.4) assessable equivalent dwelling units (on-street parking spaces).

STAFF REPORT:

The process of Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation and Filing of the Engineer’s Report Related to the McCoy Creek Parking Benefit Assessment District is presented to the Council each year and staff requests direction for proceeding with establishing the annual inflator and for approval of the Engineer’s Report.

The proposed assessments are collected for the City by the Solano County Auditor/Controller, via the secured property tax bills of the assessable parcels within the District boundary, to fund the parking improvements and ongoing maintenance. For Fiscal Year 2023-24, maximum assessments would be approximately $121.35 per equivalent dwelling unit, generating a total assessment of approximately $8,785.64.

The assessment is subject to an annual inflation factor based on the Annual Construction Cost Index (CCI) as published in the first issue of each April of the Engineering News Record magazine. This year 29 the annual inflation factor was 1.430%, increasing the maximum assessment for FY 2023-24 from $119.64 to approximately $121.35.

Today, the City Council is being asked to Initiate the process, consider for approval of the Preliminary Engineer’s Reports for Parking Benefit Assessment District, declare the Intent to levy and collect assessments for all Districts, and establish June 20, 2023, at 6:30pm for the required Public Hearing. A

1.430% annual inflator, based on the Engineering Magazine’s Construction Cost Increase (CCI), is proposed to be added to this District’s annual assessment for Fiscal Year 2023-24.

At the Public Hearing, Council affords property owners the opportunity to address the Council concerning the PAD and related matters, and the Council may approve or amend the Preliminary Engineer’s Reports and order the levy and collection of taxes. Following Council direction, the City assessment district consultant (NBS) shall prepare the Assessor Parcel Assessment Report to be sent to the County in time for the assessor’s deadline.

STAFF RECOMMENDATION:

It is recommended that the City Council adopt:

a
.

Resolution No. 2023___: Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation and Filing of the Engineer’s Report Related to the McCoy Creek Parking Benefit Assessment District for Fiscal Year 2023-24; and b
.

Resolution No. 2023-___: Declaring Its Intention to Levy and Collect Assessments Within the McCoy Creek Parking Benefit Assessment District for Fiscal Year 2023-24.

DOCUMENTS ATTACHED:
1 .

R
esolution No. 2023-___: Initiating Proceedings for the Annual Levy and Collection of Assessments and Ordering the Preparation and Filing of the Engineer’s Report Related to the McCoy Creek Parking Benefit Assessment District for Fiscal Year 2023-24. 2 .

Resolution 2023-___: Declaring Its Intention to Levy and Collect Assessments Within the McCoy Creek Parking Benefit Assessment District for Fiscal Year 2023-24. 3 .

FY 2023-24 Preliminary Engineer’s Report - McCoy Creek Benefit Assessment District.

PREPARED BY:

Amanda Dum, Management Analyst II
REVIEWED BY:

Nouae Vue, Public Works Director
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:
1 Resolution Initiating Proceedings for the Annual Levy and Collection of Assessments.pdf 2 Resolution Declaring Its Intention to Levy and Collect Assessments.pdf 3 FY 2023-24 Preliminary Engineer's Report.pdf
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28 RESOLUTION NO. 2023-____
A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

INITIATING PROCEEDINGS FOR THE ANNUAL LEVY AND COLLECTION OF

ASSESSMENTS AND ORDERING THE PREPARATION AND FILING OF THE ENGINEER’S REPORT RELATED TO THE MCCOY CREEK PARKING BENEFIT ASSESSMENT DISTRICT FOR FISCAL YEAR 2023-24
W
HEREAS, the City Council has by previous Resolutions formed and levied annual assessments for the McCoy Creek Parking Benefit Assessment District (hereafter referred to as the “District”), pursuant to the Benefit Assessment Act of 1982, Title 5 Division 2, of the California Government Code (commencing with Section 54703) (hereafter referred to as the “Act”) that provides for the levy and collection of assessments for the City of Suisun City to pay the maintenance and services of all improvements and facilities related thereto; and, WHEREAS, the City Council wishes to initiate proceedings to provide for the levy and collection of assessments for Fiscal Year 2023-24 in order to provide for the necessary costs and expenses pertaining to the maintenance of the improvements within the District.

WHEREAS, the City Council has retained NBS for the purpose of assisting with the annual levy of the District and the preparation and filing of an Annual Engineer’s Report (the “Report”) with the City Clerk in accordance with the Act.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY

THE CITY COUNCIL FOR THE DISTRICT, PURSUANT TO THE ACT, AS FOLLOWS:

Section 1 The City Council hereby orders NBS to prepare and file with the City Clerk the Report concerning the levy and collection of assessments for the District for the Fiscal Year commencing July 1, 2023, and ending June 30, 2024.

Section 2 The improvements that are being maintained in accordance with the Act, are the construction, operation, maintenance, and servicing of parking facilities including, but not limited to, maintenance, replacement, repair, materials, personnel, contracting services, and other items necessary for the satisfactory operation of these services. There are no substantial changes proposed to be made to existing improvements.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Suisun City, duly held on the 23
rd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 23rd day of May 2023.

A nita Skinner, City Clerk
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28 RESOLUTION NO. 2023-___
A RE

SOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS WITHIN

THE MCCOY CREEK PARKING BENEFIT ASESSMENT DISTRICT FOR FISCAL YEAR 2023-24
W
HEREAS, the City Council has by previous Resolutions formed and levied annual assessments for the McCoy Creek Parking Benefit Assessment District (hereafter referred to as the “District”), pursuant to the Benefit Assessment Act of 1982, Title 5 Division 2, of the California Government Code (commencing with Section 54703) (hereafter referred to as the “Act”) that provides for the levy and collection of assessments for the City of Suisun City to pay the maintenance and services of all improvements and facilities related thereto; and, W
HEREAS, the City Council pursuant to the provisions of the Act did by previous Resolution, order the preparation of an annual Engineer’s Report for the District.

W
HEREAS, NBS has filed with the City Clerk the Annual Engineer’s Report (the “Report”) concerning the cost of maintaining the improvements in such District for Fiscal Year 2023-24; and,
W
HEREAS, this City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with the District, each and all of the budget items and documents as set forth therein, and is satisfied that the levy amounts, on a preliminary basis, have been assessed in accordance with the special ben efit received from the improvements, operation, maintenance and services to be performed within the District, as set forth in said Report.

W, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY

THE CITY COUNCIL FOR THE DISTRICT, PURSUANT TO THE ACT, AS FOLLOWS:

S
ection 1 Engineer of Record: Nouae Vue, P.E., is designated as Engineer of Work for purposes of the District.

S
ection 2 Intention: The City Council hereby declares its intention to levy and collect assessments within the District pursuant to the Act for Fiscal Year 2023-24.

S
ection 3 Engineer’s Report: The Report, as presented, is hereby approved on a preliminary basis and ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. Reference is made to the Report for a full and detailed description of the improvements to be maintained, the boundaries of the District and the proposed assessments upon assessable lots and parcels of land within the District.

S
ection 4 Description of Improvements: The improvements that are being maintained in accordance with the Act, are the construction, operation, maintenance, and servicing of parking 32 Resolution No. 2023-
Adopted May 23, 2023

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facilities including, but not limited to, maintenance, replacement, repair, materials, personnel, contracting services, and other items necessary for the satisfactory operation of these services.

There are no substantial changes proposed to be made to existing improvements.

Section 6 Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 20, 2023, at 6:30 p.m. or as soon thereafter as feasible in the City Council Chambers located at 701 Civic Center Boulevard, Suisun City.

Section 7 That the City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation of the Report.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Suisun City, duly held on the 23
rd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 23
rd day of May 2023.

Anita Skinner
City Clerk

33 nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516

Fiscal Year 2023/24 Engineer’s Report For:

McCoy Creek Parking Benefit Assessment District
May 2023

34 TABLE OF CONTENTS

1. Engineer’s Letter ............................................................................................................. 1

2. Plans and Specifications .................................................................................................. 2

2.1 Description of the Boundaries of the District ........................................................... 2

2.2 Description of Improvements and Services .............................................................. 2

3. Estimate of Costs ............................................................................................................ 3

4. Assessments ................................................................................................................... 4

4.1 Method of Apportionment ........................................................................................ 4

4.2 Proposition 218 Requirements ................................................................................. 5

5. Assessment Diagram ....................................................................................................... 6

6. Assessment Roll .............................................................................................................. 7

35 McCoy Creek Parking Benefit Assessment District – City of Suisun City Fiscal Year 2023/24 Engineer’s Report 1

1. ENGINEER’S LETTER
WHEREAS, the City Council of the City of Suisun City (the “City”) has previously formed the following special benefit assessment district pursuant to terms of the “Benefit Assessment Act of 1982”, Chapter 6.4, Division 2, Title 5 of the California Government Code (commencing with Section 54703) (hereafter referred to as the “Act”). The district is known and designated as the McCoy Creek Parking Benefit Assessment District (the “District”);
WHEREAS, on May 16, 2023 the City Council under the Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer’s Report for the District; WHEREAS, the Resolution of Initiation directed NBS to prepare and file a report presenting plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the boundaries of the District and properties to be assessed, and an assessment of the estimated costs of the maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the estimated costs of maintenance, operation, and servicing of improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received.

SUMMARY OF ASSESSMENT
Description
Estimated for
Fiscal Year 2023/24
Estimated Fiscal Year 2023/24 Levy (1) $8,785.64
Total District Equivalent Dwelling Units 72.40
Fiscal Year 2023/24 Assessment Per EDU $121.35
(1) Actual assessments may be rounded to the nearest even penny in accordance with the requirements of the County for placement on the tax rolls.

I, the undersigned, respectfully submit the enclosed Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report and assessments herein have been prepared and computed in accordance with the Act.

By: ____________________________
City of Suisun City
Public Works Director (Engineer of Work)
36 McCoy Creek Parking Benefit Assessment District – City of Suisun City Fiscal Year 2023/24 Engineer’s Report 2

2. PLANS AND SPECIFICATIONS

2.1 Description of the Boundaries of the District
The boundaries of the District are described as the area bounded by McCoy Creek Way to the north, Gray Hawk Lane to the south, Crescent Elementary School to the east , and Grizzly Island Road to the w est. The District consists of mixed-use parcel types and is proposed to include 75 on -street parking spaces at build- out for Lots 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 13.

2.2 Description of Improvements and Services
In accordance with the Act, the improvements are the construction, operation, maintenance, and servicing of parking facilities including, but not limited to, maintenance, replacement, repair, materials, personnel, contracting services, and other items necessary for the satisfactory operation of these services.

Reference is made to the plans and specifications for the improvements, which are on file with the City.

The specific improvements within the District are as follows:

PARKING AREAS AND FACILITIES
75 on-street parking spaces benefiting Lots 1 through 10 and Lot 13, located on the south side of McCoy Creek Way, west of Crescent Elementary School, east of Grizzly Island Road, and north of Gray Hawk Lane. 37 McCoy Creek Parking Benefit Assessment District – City of Suisun City Fiscal Year 2023/24 Engineer’s Report 3

3. ESTIMATE OF COSTS
The following table shows the estimate of costs related to the District.

City of Suisun City
McCoy Creek Parking Assessment District
Cash Position Summaries
Fiscal Year 2023-24 Annual Budget

Budget Activity
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Year to Date
FY 2023-24
Proposed Budget
Resources
Beginning Balance $35,785.61 $36,714.26 $34,648.17 $34,648.00

District Assessment (1) $7,613.84 $7,545.46 $4,330.90 $8,785.64 Interest Earnings (12.33) (100.94) 203.70 200.00
Subtotal: Revenue & Transfers $7,601.51 $7,444.52 $4,534.60 $8,985.64

Subtotal: Resources $43,387.12 $44,158.78 $39,182.77 $43,633.64

Expenditures
Other Professional Services $919.67 $427.26 $0.00 $172.00 Advertising 0.00 176.31 0.00 0.00
Property Tax Admin Fee 76.13 75.45 43.30 100.00
Other Contract Services 0.00 0.00 0.00 1,100.00
Field Supplies 174.38 0.00 0.00 400.00
Public Works Supplies 5,002.68 7,633.94 5,586.07 12,351.14 Major Facility Repairs 0.00 0.00 0.00 12,800.00
Investment Loss 0.00 697.65 (697.65) 0.00
Subtotal: Operating $6,172.86 $9,010.61 $4,931.72 $26,923.14

Staff Administration Costs $500.00 $500.00 $333.36 $500.00 Subtotal: Non-Operating $500.00 $500.00 $333.36 $500.00

Subtotal: Expenditures $6,672.86 $9,510.61 $5,265.08 $27,423.14

Ending Balance $36,714.26 $34,648.17 $33,917.69 $16,210.50 (1) Actual assessments may be rounded to the nearest even penny in accordance with the requirements of the County for placement on the tax rolls.
38 McCoy Creek Parking Benefit Assessment District – City of Suisun City Fiscal Year 2023/24 Engineer’s Report 4

4. ASSESSMENTS
The assessments for Fiscal Year 2023/24 apportioned to each parcel as shown on the latest equalized roll at the Solano County Assessor’s office are listed in Section 6 of this Engineer’s Report. The description of each lot or parcel is part of the records of the County Assessor and such records are, by reference, made part of this Engineer’s Report.

4.1 Method of Apportionment
Pursuant to the Act and Article XIII D of the Constitution of the State of California, all parcels that have special benefit conferred upon them as a result of the maintenance and operation of improvements shall be identified and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire cost of the maintenance and operation of the improvements. Only parcels that receive direct special benefit are assessed, and each parcel is assessed in proportion to the estimated benefit received. An Equivalent Dwelling Unit (EDU) of benefit per parcel/unit type is equal to the number of on-street parking spaces benefiting the parcel.

The District consists of three development types: Single-Family Attached parcels – (Retail Space) (“SFA”); Residential/Commercial parcels – (Carriage Unit over Retail) – (Live-Work or “L-W”); and Commercial parcels (“COM”), subject to this assessment. For any fiscal year, the estimated costs are apportioned as follows: each SFA parcel is deemed to receive 3.30 EDUs of benefit per parcel/unit type; each L-W parcel is deemed to receive 4.30 EDUs of benefit per each parcel/unit type; and each COM parcel is deemed to receive 1 EDU per 250 square feet of building area. The total EDU count for the District is 72.40. Please refer to Section 7 of the Original Engineer’s Report for a full description and breakdown of the actual EDU calculations for the District.

The annual assessment for each parcel is calculated first by dividing the total District estimated costs by the total EDU count, thus yielding an assessment rate per EDU; second, multiplying the quotient from the first step by a given parcel’s individual EDU value. (Note: the actual annual assessment per EDU cannot exceed the Maximum Assessment described in this section without appropriate proceedings being conducted by the City.)
The District costs are spread to each of the 72.40 EDUs within the District as follows:

Estimated Fiscal Year 2023/24 Levy (1) $8,785.64
Total District Equivalent Dwelling Units 72.40
Fiscal Year 2023/24 Assessment Per EDU $121.35
(1) Actual assessments may be rounded to the nearest even penny in accordance with the requirements of the County for placement on the tax rolls. 39 McCoy Creek Parking Benefit Assessment District – City of Suisun City Fiscal Year 2023/24 Engineer’s Report 5

4.2 Proposition 218 Requirements
This rate automatically increases in future years based on the Annual Construction Cost Index for San Francisco as published in the first issue of each April of the Engineering News Record magazine (“April Construction Cost Index”). The confirmed assessment per EDU for Fiscal Year 2006/07 set the initial maximum assessment. If the actual assessment in any succeeding year increases by a percentage no greater than the April Construction Cost Index, the assessment shall not be considered an increase. The table below shows the April Construction Cost Index history and the authorized assessment related to the increase.

Fiscal Year
Percentage
Increase
Maximum
Assessment
Actual
Assessment
2006/07 N/A $66.74 $66.74
2007/08 7.76% 71.93 71.92
2008/09 0.58% 72.36 72.36
2009/10 6.56% 77.07 77.07
2010/11(1) 0.00% 77.07 77.07
2011/12 4.42% 80.48 80.48
2012/13 2.07% 82.15 82.15
2013/14 0.02% 82.17 82.17
2014/15 5.03% 86.30 86.30
2015/16 2.46% 88.42 88.42
2016/17 3.55% 91.56 91.56
2017/18 1.19% 92.65 92.65
2018/19 2.72% 95.17 95.17
2019/20 2.56% 97.61 97.61
2020/21 4.01% 101.52 101.52
2021/22 2.66% 104.22 104.22
2022/23 14.79% 119.64 119.64
2023/24 1.43% 121.35 121.34
(1) The 2010/11 percentage increase in the annual April Construction Cost Index wa s -0.26%, and as such the maximum assessment rate for 2010/11 remained the same as the prior year.

40 McCoy Creek Parking Benefit Assessment District – City of Suisun City Fiscal Year 2023/24 Engineer’s Report 6

5. ASSESSMENT DIAGRAM
An Assessment Diagram for the District has been submitted to the City in the format required under the provisions of the Act. The lines and dimensions shown on maps of the County Assessor for the current year are incorporated by reference herein and made part of this Engineer’s Report.

41 McCoy Creek Parking Benefit Assessment District – City of Suisun City Fiscal Year 2023/24 Engineer’s Report 7

6. ASSESSMENT ROLL
The following parcels within the District will be assessed for Fiscal Year 2023/24:

APN Parcel Type EDUs
Fiscal Year 2023/24
Assessment (1)
0173-811-010 SFA 3.30 $400.44
0173-811-020 LW 4.30 521.80
0173-811-030 LW 34.40 4,174.44
0173-811-060 LW 4.30 521.80
0173-811-070 LW 4.30 521.80
0173-811-080 SFA 3.30 400.44
0173-811-090 SFA 3.30 400.44
0173-811-100 SFA 3.30 400.44
0173-811-110 LW 4.30 521.80
0173-811-120 LW 4.30 521.80
0173-812-180 SFA 3.30 400.44
Totals: 72.40 $8,785.64
(1) Actual assessments may be rounded to the nearest even penny in accordance with the requirements of the County for placement on the tax rolls.

Assessor’s parcel identification, for each lot or parcel within the District, shall be based on the Solano County Assessor’s secured roll data for the applicable year in which this Report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels assessed within the District for Fiscal Year 2023/24, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on Solano County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the Solano County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this Report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

42 AGENDA ITEM NO. 7

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Council Adoption of Ordinance No. ___: An Ordinance of the City Council of the City of Suisun City Levying Special Tax Within City of Suisun City Communities Facilities District No. 2 (Municipal Services, Including Certain Annexation Territory) - (Lawler Mixed-Use Project - Introduced on May 2, 2023).

FISCAL IMPACT:

There would be an impact to the General Fund from this item. Once annexed into CFD#2, Lawler Mixed Use will begin to contribute funds towards Safety Services such as police and fire. The annexation of the Lawler Mixed Use into Community Facilities District No. 2 meets the fiscal criteria as established by Resolution No. 2005-69 Cost Recovery Policy for New Development, dated October 4, 2005.

Community Facilities District #2 is intended to offset Municipal Service costs, including administrative costs, thereby reducing the negative fiscal impact of new development on the City’s General Fund.

STRATEGIC PLAN:

Provide Good Governance and Ensure Public Safety.

BACKGROUND:

As part of the Lawler Mixed Use's conditions of approval, the developer is required to mitigate the impact on City Services due to the new development. In accordance with the development conditions imposed on development project, the landowner is annexing to Community Facility District No. 2 to offset municipal service costs for police, fire, paramedics.

As the first step in the annexation process, the Resolution of Intention was brought before Council and approved at the March 21, 2023, Council Meeting.

The second steps in the legislative process for annexation of Lawler Mixed Use into Community Facility District No. 2 included conducting the Public Hearing and the waiving fir the first reading of the Ordinance at the May 2, 2023, Council Meeting.

STAFF REPORT:

The final step in legislative process for the annexation of Lawler Mixed Use involves the item coming back to Council as a Consent item to complete the adoption of the associated Ordinance. This is the step before you tonight.

STAFF RECOMMENDATION:

It is recommended that the City Council Adopt Ordinance No. 799:

An Ordinance of the City Council of the City of Suisun City Levying Special Tax Within City of Suisun City Communities Facilities District No. 2 (Municipal Services, Including Certain Annexation Territory) - (Lawler Mixed Use Project - Introduced on May 2, 2023).

DOCUMENTS ATTACHED:
1 .

43 PREPARED BY:

Amanda Dum, Management Analyst II
REVIEWED BY:

Nouae Vue, Public Works Director
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:
1 Ordinance 799 CFD 2 Annexation 15 Lawler Mixed-Use.pdf 44 1
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28 ORDINANCE NO. 799
AN O

RDINANCE OF THE CITY COUNCIL OF THE CITY OF SUISUN

CITY LEVYING SPECIAL TAX WITHIN CITY OF SUISUN CITY
COMMUNITY FACILITIES DISTRICT NO. 2 (MUNICIPAL

SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY
Annexation No. 15 (Lawler Mixed-Use)
WHEREAS, the City of Suisun City (the “City”) has conducted proceedings pursuant to the Mello -Roos Community Facilities Act, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”) to establish “City of Suisun City Community Facilities District No. 2 (Municipal Services)” (the “CFD”) for the purpose of financing certain municipal services (the “Services) as provided in the Act; and
WHEREAS, the rate an d method of apportionment of special tax for the CFD (the “Original Rate and Method”) is set forth in Exhibit A to City Council Resolution 2005-89, which was adopted on November 15, 2005 (the “Resolution of Formation”); and WHEREAS, the City has conducted proceedings to annex territory into the CFD and, in connection therewith, approved supplements to the Original Rate and Method (as supplemented, the “Rate and Method”);

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SUISUN CITY as follows:

SECTION ONE: By the passage of this Ordinance, pursuant to the Act, the Council hereby authorizes and levies the Special Tax within the CFD, including all territory annexed into the CFD prior to the date hereof, at the rate and in accordance with method set forth in the Rate and Method, which rate and method are by this reference incorporated herein. The Special Tax has previously been levied in the original territory of the CFD beginning in fiscal year 2006-07 pursuant to Ordinance No. 684, passed and adopted by the City Council on December 6, 2005, and the Special Tax is hereby levied commencing in fiscal year 2022-23 in the territory annexed to the CFD subsequent to formation of the CFD, and in each fiscal year thereafter to pay for the Services for the CFD and all costs of administering the CFD.

The City Council hereby ratifies the levy of special taxes within the CFD pursuant to the Act, at the rate and in accordance with the Rate and Method, in fiscal years 2006- 07 through 2022-

23. SECTION TWO: The City Manager or designee, or an employee or consultant of the City, is hereby authorized and directed each fiscal year to determine the specific Special Tax to be levied for the next ensuing fiscal year for each parcel of real property within the CFD, including all territory annexed to the CFD prior to the date hereof, in the manner and as provided in the Rate and Method.

SECTION THREE: Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation, the Rate and Method and the applicable provisions of the Act. In no 45 Ordinance No. 799
Adopted May 23, 2023

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event shall the Special Tax be levied on any parcel within the CFD in excess of the maximum Special Tax specified in the Rate and Method.

SECTION FOUR: All of the collections of the Special Tax shall be used as provided in the Act and in the Resolution of Formation, including, but not limited to, the payment of costs of the Services, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the Special Tax.

SECTION FIVE: The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the Council may provide for other appropriate methods of collection by resolution(s) of the Council. The City Manager of the City (or the City Manager’s designee) is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Solano in order to effect proper billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County of Solano for fiscal year 2022-23 and for each fiscal year thereafter, as set forth above, until no longer required to pay for the Services or until otherwise terminated by the City.

SECTION SIX: If for any reason any portion of this Ordinance is found to be invalid, or if the Special Tax is found inapplicable to any particular parcel within the CFD, including all territory annexed to the CFD prior to the date hereof, by a court of competent juris diction, the balance of this Ordinance and the application of the Special Tax to the remaining parcels within the CFD, including all territory annexed to the CFD prior to the date hereof, shall not be affected.

SECTION SEVEN: The Mayor shall sign this Ordi nance and the City Clerk shall cause the same to be published immediately after its passage at least once in a newspaper of general circulation circulated in the City.

SECTION EIGHT: This Council affirms the provisions of Ordinance No. 684 except to the extent any terms of such Ordinance are inconsistent with the provisions of this Ordinance, in which case the terms of this Ordinance shall govern.

SECTION NINE: This Ordinance shall become effective (30) days following its passage and adoption and shall be published once within fifteen (15) days upon passage and adoption in a newspaper of general circulation in the City of Suisun City, County of Solano. * * * * * *
46 Ordinance No. 799
Adopted May 23, 2023

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INTRODUCED at a Regular Meeting of the City Council of the City of Suisun City duly held on Tuesday, the 2nd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 2nd day of May 2023.

_________________________________
Anita Skinner
City Clerk

PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Suisun City duly held on Tuesday, the 23
rd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

ATTEST:

Alma Hernandez Anita Skinner
Mayor City Clerk

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48 AGENDA ITEM NO. 8

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Council Adoption of Ordinance No. 800: An Ordinance of the City Council of the City of Suisun City Levying Special Tax Within City of Suisun City Communities Facilities District No. 2 (Municipal Services, Including Certain Annexation Territory) - (Marina Village Apartments - Introduced on May 2, 2023).

FISCAL IMPACT:

There would be an impact to the General Fund from this item. Once annexed into CFD#2, Marina Village Apartments will begin to contribute funds towards Safety Services such as police and fire. The annexation of the Marina Village Apartments into Community Facilities District No. 2 meets the fiscal criteria as established by Resolution No. 2005-69 Cost Recovery Policy for New Development, dated October 4, 2005. Community Facilities District #2 is intended to offset Municipal Service costs, including administrative costs, thereby reducing the negative fiscal impact of new development on the City’s General Fund.

STRATEGIC PLAN:

Provide Good Governance and Ensure Public Safety.

BACKGROUND:

As part of the Marina Village Apartment's conditions of approval, the developer is required to mitigate the impact on City Services due to the new development. In accordance with the development conditions imposed on development project, the landowner is annexing to Community Facility District No. 2 to offset municipal service costs for police, fire, paramedics.

As the first step in the annexation process, the Resolution of Intention was brought before Council and approved at the March 21, 2023, Council Meeting.

The second steps in the legislative process for annexation of Marina Village Apartments into Community Facility District No. 2 included conducting the Public Hearing and the waiving of the first reading of the Ordinance at the May 2, 2023, Council Meeting.

STAFF REPORT:

The final step in legislative process for the annexation of Marina Village Apartments involves the item coming back to Council as a Consent item to complete the adoption of the associated Ordinance. This is the step before you tonight.

STAFF RECOMMENDATION:

It is recommended that the City Council Adopt Ordinance No.800:

DOCUMENTS ATTACHED:
1 .

49 PREPARED BY:

Amanda Dum, Management Analyst II
REVIEWED BY:

Nouae Vue, Public Works Director
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:
1 Ordinance 800 CFD 2 Annexation 16 Marina Village Apartments Project.pdf 50 1
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28 ORDINANCE NO. 800
AN O

RDINANCE OF THE CITY COUNCIL OF THE CITY OF SUISUN

CITY LEVYING SPECIAL TAX WITHIN CITY OF SUISUN CITY
COMMUNITY FACILITIES DISTRICT NO. 2 (MUNICIPAL

SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY
Annexation No. 16 (Marina Village Apartments)
WHEREAS, the City of Suisun City (the “City”) has conducted proceedings pursuant to the Mello -Roos Community Facilities Act, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”) to establish “City of Suisun City Community Facilities District No. 2 (Municipal Services)” (the “CFD”) for the purpose of financing certain municipal services (the “Services) as provided in the Act; and
WHEREAS, the rate and method of apportionment of special tax for the CFD (the “Original Rate and Method”) is set forth in Exhibit A to City Council Resolution 2005-89, which was adopted on November 15, 2005 (the “Resolution of Formation”); and WHEREAS, the City has conducted proceedings to annex territory into the CFD and, in connection therewith, approved supplements to the Original Rate and Method (as supplemented, the “Rate and Method”);

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SUISUN CITY as follows:

The City Council hereby ratifies the levy of special taxes within the CFD pursuant to the Act, at the rate and in accordance with the Rate and Method, in fiscal years 2006- 07 through 2022-

SECTION THREE: Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation, the Rate and Method and the applicable provisions of the Act. In no 51 Ordinance No. 800
Adopted May 23, 2023

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event shall the Special Tax be levied on any parcel within the CFD in excess of the maximum Special Tax specified in the Rate and Method.

SECTION FIVE: The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have t he same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the Council may provide for other appropriate methods of collection by resolution(s) of the Council. The City Manager of the City (or the City Manager’s designee) is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of Solano in order to effect proper billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County of Solano for fiscal year 2022-23 and for each fiscal year thereafter, as set forth above, until no longer required to pay for the Services or until otherwise terminated by the City.

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INTRODUCED at a Regular Meeting of the City Council of the City of Suisun City duly held on Tuesday, the 2nd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 2nd day of May 2023.

______________________________
Anita Skinner
City Clerk

PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Suisun City duly held on Tuesday, the 23
rd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

ATTEST:

Alma Hernandez Anita Skinner
Mayor City Clerk
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54 AGENDA ITEM NO. 9

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Council Adoption of Resolution No. 2023-___: Authorizing the City Manager to Execute a Contract Amendment on the City’s Behalf with Coastland Civil Engineering to Provide Further City Engineer Services on the Buzz Oates Private Development Projects.

FISCAL IMPACT:

The funding for City Engineer and technical support services on the Buzz Oates Projects will be paid through a reimbursement agreement with Buzz Oates. There is no impact on the General Fund.

STRATEGIC PLAN:

Ensure Public Safety. Provide Good Governance.

BACKGROUND:

In January 2021, the departure of the Public Works Director resulted in the lack of a City Engineer. With the need for City Engineer and technical services on primarily the proposed two Buzz Oates private development projects (as well as a few other 2021 projects needing technical assistance), the City contracted with Coastland Civil Engineering in February 2021 in the amount of $34,900. Said contract amount is within the City Manager’s authorized limit of $35,000. That contract amount was increased to $100,000 through a City Council action on August 17, 2021. Recently, it has come to Public Works staff’s attention that Coastland has provided services beyond the contract amount.

STAFF REPORT:

To date, Coastland Civil Engineering’s total expenditure on the Buzz Oates development projects is $120,216.89. These costs are reimbursable through the reimbursement agreement with Buzz Oates.

Given that the Buzz Oates projects are still in the design and environmental clearing phase, are complex, and still have a long list of technical challenges, continued technical support from Coastland Civil Engineering is still needed. This will necessitate a contract amendment with Coastland Civil Engineering to increase the current contract amount, and City Council approval is required for this contract amendment.

It is recommended that the City Council authorize the City Manager to execute a contract amendment on the City’s behalf with Coastland Civil Engineering to increase the contract amount from $100,000 to $250,000, which will be funded by development fees.

STAFF RECOMMENDATION:

It is recommended that the City Council Adopt Resolution No. 2023- ___: Authorizing the City Manager to Execute a Contract Amendment on the City’s Behalf with Coastland Civil Engineering to Provide Further City Engineer Services on the Buzz Oates Private Development Projects.

DOCUMENTS ATTACHED:
1 .

Resolution No. 2023-___: Authorizing the City Manager to Execute a Contract Amendment on the City’s Behalf with Coastland Civil Engineering to Provide Further City Engineer Services on 55 the Buzz Oates Private Development Projects.
2 .

Contract Amendment with Coastland Civil Engineering

PREPARED BY:

Amanda Dum, Management Analyst II
REVIEWED BY:

Nouae Vue, Public Works Director
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:
1 Resolution Authorizing Contract Amendment with Coastland Engineering for Buzz Oates Private Development Project.pdf
2 Contract Amendment with Coastland Civil Engineering.pdf 56 1
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28 RESOLUTION NO. 202 3-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT
AMENDMENT ON THE CITY’S BEHALF WITH COASTLAND CIVIL

ENGINEERING TO PROVIDE FURTHER CITY ENGINEER SERVICES ON THE

BUZZ OATES PRIVATE DEVELOPMENT PROJECTS

WHEREAS, the departure of the Public Works Director in January 2021 resulted in the lack of a City Engineer; and
WHEREAS, projects in the City, particularly the two Buzz Oates private development projects, required City Engineer and technical support services; and WHEREAS, in February 2021, the City contracted with Coastland Civil Engineering in the amount of $34,900 to provide City Engineer and technical support services; and WHEREAS, in August 17, 2021, the City Council approved the increase of the contract amount to $100,000; and
WHEREAS, both of the Buzz Oates private development projects are currently in the design and environmental clearing phase, are complex, and have a long list of technical challenges; and
WHEREAS, technical support from Coastland Civil Engineering on the Buzz Oates projects is still needed; and
WHEREAS, Coastland Civil engineer’s total expenditure on the Buzz Oates development is $120,216.89 to date, and a contract amendment will need to be executed to increase the current contract amount; and
WHEREAS, technical services provided on the Buzz Oates projects are funded by the developer.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Suisun City does hereby authorize the City Manager to execute a contract amendment on the City’s behalf with Coastland Civil Engineering to continue to provide technical support on the two Buzz Oates private development projects, increasing the current contract amount of $100,000 to $250,000.

PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Suisun City duly held on Tuesday, the 23rd day of May 2023, by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:

WITNESS my hand and the seal of said City this 23rd day of May 2023.

Anita Skinner
City Clerk
57 58
AGENDA ITEM NO. 10

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Council Adoption of Resolution No. 2023___: Authorizing the City Manager to Enter into a Contract Agreement on the City’s Behalf with S. H. Mechanical for the Citywide Heating, Ventilation and Air Conditioning (HVAC) Maintenance and Repair Contract.

FISCAL IMPACT:

The cost for retaining S. H. Mechanical to provide Heating, Ventilation, and Air Conditioning (HVAC) maintenance and repair service is $73,686 for three (3) years. This maintenance service will be from the Facility Maintenance Fund 010-91415-3350. This budget has sufficient funding for this contract.

STRATEGIC PLAN:

Provide Good Governance; Ensure Public Safety; Ensure Fiscal Solvency

BACKGROUND:

In 2016, the City entered a contract with Solano Heating and Air Conditioning for HVAC maintenance and repair services. In 2022, Solano Heating and Air Conditioning closed shop leaving the City with no HVAC service contract.

STAFF REPORT:

In March 2023, the City advertised for Request for Proposals for a new HVAC maintenance provider. Four (4) proposals were received. Each proposal was evaluated based on the following categories: Cost (35%), Listed References (35%), Understanding of the scope and proposed action plan (25%), and Locality (5%). After the evaluation process, staff determined that S. H.

Mechanical is the most qualified contractor to provide HVAC maintenance and repair service.

This contract is for the following buildings:
1 .

City Hall, 701 Civic Center Blvd.
2 .

Suisun Police Department, 701 Civic Center Blvd.
3 .

Nelson Community Center, 611 Village Drive
4 .

Fire Department, 621 Pintail Drive
5 .

Senior Center, 318 Merganser
6 .

Public Works Service Ctr., 4555 Peterson Road
7 .

Train Depot, 177 Main Street
8 .

Harbor Theater, 720 Main Street
9 .

Burdick Center, 1101 Charleston Street
10 .

Harbor Master Building, 800 Kellogg Street

STAFF RECOMMENDATION:

It is recommended that the City Council Adopt Resolution No. 2023___: Authorizing the City Manager to Enter into a Contract Agreement on the City’s Behalf with S. H. Mechanical for the Citywide Heating, Ventilation and Air Conditioning (HVAC) Maintenance and Repair Contract.

DOCUMENTS ATTACHED:
1 .

Resolution No. 2023___: Authorizing the City Manager to Enter into a Contract Agreement on the City’s Behalf with S. H. Mechanical for the Citywide Heating, Ventilation and Air 59 Conditioning (HVAC) Maintenance and Repair Contract. 2 .

Contract Services Agreement - S. H. Mechanical Inc - Citywide HVAC Services 3 .

S. H. Maintenance Inc. Cost Form

PREPARED BY:

Gemma Geluz, Administrative Assistant II
REVIEWED BY:

Nouae Vue, Public Works Director
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:

1. Authorizing the City Manager to Enter into a Contract Agr for City Wide HVAC Maintenance & Repair.pdf

2. Contract Services Agreement - S. H. Mechanical Inc - Citywide HVAC Services.pdf

3. SH Mechanical Cost Form.pdf
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28 RESOLUTION NO. 2023- __

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT
AGREEMENT ON THE CITY’S BEHALF WITH S. H. MECHANICAL INC. FOR THE

CITYWIDE HEATING, VENTILATION AND AIR CONDITIONING (HVAC)

MAINTENANCE AND REPAIR CONTRACT

WHEREAS, the City has a need for maintenance and service work for the City facilities’ Heating, Ventilation and Air Conditioning (HVAC) units; and WHEREAS, the City advertised the request for proposals for this Contract on March 3, 2023 and the proposals were opened on April 5, 2023; and WHEREAS, S. H. Mechanical Inc. was deemed the best company for this contract for $24,562 per year for a total contract cost of $73,578 for three [3] years.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Suisun City authorizes the City Manager to enter into an agreement on behalf of the City with S. H.

Mechanical Inc. for the Citywide HVAC Maintenance and Repairs Contract in the amount of $24,562, and to take any and all necessary and appropriate actions to implement this contract. And authorize the City Manager to extend this contract services agreement for up to three (3) one-year extensions with an annual contract value adjustment increase not to exceed an annual 3% cost of living increase at the discretion of the City Manager.

PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Suisun City duly held on Tuesday, the 23rd day of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of said City this 23rd day of May 2023.

Anita Skinner
City Clerk

61 CONTRACT-1 CONTRACT SVR AGR
WITH S.H. Mechanical Inc.

K:\Public Works\0 Resos & Agendas \FY23\5-23-2023\HVAC Contract\Contract Services Agreement - S. H. Mechanical Inc - Citywide HVAC Services.docx

CITY OF SUISUN CITY

CONTRACT SERVICES AGREEMENT FOR

CITYWIDE HEATING, VENTILATION AND AIR CONDITIONING
(HVAC) MAINTENANCE AND REPAIR CONTRACT
THIS CONTRACT SERVICES AGREEMENT (herein “Agreement”) is made and entered into this 23rd day of May , 2023, by and between the CITY OF SUISUN CITY, a City Municipality herein (“City”) and S. H. Mechanical Inc. (herein “Contractor”).

NOW, THEREFORE, the parties hereto agree as follows:

1. SERVICES OF CONTRACTOR

1.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, the Contractor shall perform the work or services set forth in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by reference. Contractor warrants that all work and services shall be performed in professional and satisfactory manner.

1.2 Compliance With Law. All work and services rendered hereunder shall be provide in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction.

1.3 Licenses, Permits, Fees and Assessments . Contractor shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the services required by the Agreement.

2. COMPENSATION

2.1 Contract Sum . For the services rendered pursuant to this Agreement, Contractor shall be compensated in accordance with the “Schedule of Compensation” attached hereto as Exhibit “B” and incorporated herein by this reference, but not exceeding the maximum contract amount of Seventy-Eight Thousand Dollars ($78,000.00) (“Contract Sum”).

2.2 Method of Payment. Provided that Contractor is not in default under the terms of this Agreement, Contractor shall be paid Monthly.

3. COORDINATION OF WORK

3.1 Representative of Contractor . Shannon Hacker is hereby designated as being the principal and representative of Contractor authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith. 62 CONTRACT-2 CONTRACT SVR AGR
WITH S.H. Mechanical Inc.

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3.2 Contract Officer . Nouae Vue is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and services specified herein and make all decisions in connection therewith (“Contract Officer”). The City Manager of City shall have the right o designate another Contract Officer by providing written notice to Contractor.

3.3 Prohibition Against Subcontracting or Assignment. Contractor shall not contract with any entity to perform in whole or in part the work or services required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein may be assigned o r transferred, voluntarily or by operation of law, without the prior written approval of City. Any such prohibited assignment or transfer shall be void.

3.4 Independent Contractor. Neither the /city nor any of its employees shall have any control over the ma nner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth. Contractor shall perform all services required herein as an independent contractor consistent with that role. Contracto r shall not at any time or in any manner represent that it or nay of its agent or employees are agents or employees of City.

4. INSURANCE AND INDEMNIFICATION
Insurance. The Contractor shall procure and maintain, at its sole cost and expense, in a form and co ntent satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees and agents of City:
(a) General Liability Insurance (Occurrence Form CG0001 or equivalent) . A policy of comprehensive general liability insurance written on a per occurrence basis for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than $ 1,000,000.00 per occurrence or if a general aggregate limit is used, then the general aggregate limit shall be twice the occurrence limit.
(b) Worker’s Compensation Insurance . A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for the Contractor against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retai ned by the Contractor in the course of carrying out the work or services contemplated in this Agreement.
(c) Automotive Insurance (Form CA 0001 (Ed 1/87) including “any auto” and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liabili ty insurance written on a per occurrence for bodily injury and property damage in an amount not less than $1,000,000. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile.

All of the above policies of insurance shall be primary insurance and shall name the City , its elected and appointed officers, employees and agents as additional insureds and any insurance 63 CONTRACT-3 CONTRACT SVR AGR
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maintained by City or its officers, employees or agents may apply in excess of, and not contribute with Contractor’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, its officers, employees and agents and their respective insurers. Moreover, the insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self-insured retention.

All of said policies of insurance shall provide that said insurance may not be amended or cancelled by the insurer or any party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer.

No work or services under this Agreement shall commence until the Contractor has provided the City with Certificates of Insurance , additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the right to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.

All certificates shall name the City as additional insured (providing the appropriate endorsement) and shall conform to the following “cancellation” notice:

CANCELLATION:

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE

CANCELLED BEFORE THE EXPIRATION DATED THEREOF,
THE ISSUING COMPANY SHALL MAIL THIRTY (30) -DAY

ADVANCE WRITTEN NOTICE TO CERTIFICATE HOLDER
NAMED HEREIN.
[to be initialed] ______________
Contractor Initials
City, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities Contractor performs; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or any automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, employees or volunteers. Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. The Contractor agrees that the 64 CONTRACT-4 CONTRACT SVR AGR
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requirement to provide insurance shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor’s activities or the activities of any person or persons for which the Contractor is otherwise responsible nor shall it limit the Contractor’s indemnification liabilities as provided in Section 5.3.

In the event the Contractor subcontracts any portion of the work in compliance with Section

4.5 of this Agreement, the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Contractor is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City.

Indemnification. To the full extent permitted by law, Contractor agrees to indemnify , defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obliga tions, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or ac tivities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“indemnitors”), or arising from Contractor’s or indemnitors’ reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorney’s fees incurred in connection therewith;
(b) Contractor will promptly pay any judgment rendered aga inst the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees t o save and hold the City, its officers, agents, and employees harmless therefrom;
(c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurr ed by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorney’s fees.

Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contra ctor shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or 65 CONTRACT-5 CONTRACT SVR AGR
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omission, or reckless or willful misconduct of Contractor in the performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement.

1.2 Sufficiency of Insurer.

Insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City (“Risk Manager”) due to unique circumstances. If this Agreement continues for more than 3 years duration, or in the event the risk manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the Risk Manager.

5. TERM

5.1 Term. Unless earlier terminate d in accordance with Section 5.2 below, this Agreement shall continue in full force and effect until December 20, 2025.

5.2 Termination Prior to Expiration of Term. Either party may terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to the other party. Upon receipt of the notice of termination, the Contractor shall immediately cease all work or services hereunder except as may be specifically approved by the City, Contractor shall be entitled to compensation for all services rendered prior to the effectiveness of the notice of termination and for such additional services specifically authorized by the Contractor Officer and City shall be entitled to re imbursement for any compensation paid in excess of the services rendered.

6. MISCELLANEOUS

6.1 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative acti on to ensure that applicants are employed and that employees are treated during employment without regard to their race, color creed, religion, sex, marital status, national origin, or ancestry.

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any default or breach by the City or for any amount, which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

6.3 Conflict of Interest . No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreeme nt which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

6.4 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer:

Nouae Vue, Public Works Director
City of Suisun City
701 Civic Center Blvd.

Suisun City, CA 94585
O: 707-421-7340, F: 707-429-3758
Email: [email protected]
and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement.

Shannon Hacker, Vice President
SH Mechanical Inc.
231 - 233 Travis Court
Suisun City, CA 94585
Ph: 707-287-7982
Email: [email protected]

6.5 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

6.6 Integration; Amendment . It is understood that there are no oral agreements between the parties hereto affect ing this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing.

6.7 Severability. In the event that part of this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties 67 CONTRACT-7 CONTRACT SVR AGR
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hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

6.8 Waiver. No delay or omission in the exercise of any right or remedy by non-defaulting party on any default shall impair such right or remedy or be construed as a waiver.

A party’s consent to or approval of any act by the other party requiring the party’s consent or approval shall not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

6.9 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which any be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees, whether or not the matter proceeds to judgment.

6.10 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound.

IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above.

CITY
CITY OF Suisun City, a City Municipality

Greg Folsom, City Manager
ATTEST

Anita Skinner, City Clerk

CONTRACTOR
S. H. Mechanical Inc.

By:

Name:
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Its:

By:

Name:

Its:
[END OF SIGNATURES]
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EXHIBIT “A”

SCOPE OF SERVICES

See Attachment

70 DEPARTMENTS: AREA CODE (707)
ADMINISTRATION 421-7300 ◼ PLANNING 421-7200 ◼ BUILDING 421-7310 ◼ FINANCE 431-7320 FIRE 425-9133 ◼ RECREATION & COMMUNITY SERVICES 421-7200 ◼ POLICE 421-7373 ◼ PUBLIC WORKS 421-7340 DEVELOPMENT SERVICES 421-7309 ◼ FAX 421-7366

CITY COUNCIL
Alma Hernandez, Mayor
Princess Washington, Mayor Pro Tem
Jenalee Dawson
Amit Pal

CITY COUNCIL MEETING
First and Third Tuesday
Every Month

CITY OF SUISUN CITY

701 Civic Center Blvd.

Suisun City, California 94585

Incorporated October 9, 1868

CITY COUNCIL MEETING
First and Third Tuesday
Every Month

CITY COUNCIL MEETING
First and Third Tuesday
Every Month
Request for Proposals (RFP) for Heating Ventilation/Air Conditioning (HVAC) Service and Maintenance

DATE: March 3, 2023

REQUEST FOR PROPOSALS: City Facilities HVAC Maintenance

OPENING DATE AND TIME: Wednesday, March 29, 2023

Interested Parties are invited to submit sealed proposals or PDF attachment emails in accordance with the requirements of the Request for Proposal contained herein.

Sealed proposals must be submitted to the Public Works Department at 701 Civic Center Boulevard or emailed to [email protected], as a PDF attachment, no later than 12:00 noon, [insert date]. Proposals will be opened in the Council Chambers located at Suisun City Hall, 701 Civic Center Boulevard, at which time respondents to this request will be publicly identified. Proposals received after the stated time will not be accepted. Proposal modifications will not be accepted by facsimile prior to opening. Due to the possibility of negotiations with any bidder that may be eligible for contract award, prices will not be divulged at time of opening.

A proposal MUST be signed by an official authorized to bind the bidder and must contain a statement to the effect that the proposal price is firm for a period of ninety days beginning [insert date].

Sealed proposals must be marked “Suisun City Facilities HVAC Maintenance”.

This Solicitation does not commit Suisun City to award a contract, to pay any costs incurred in the preparation of proposals, or to procure or contract for the services solicited. The City has the right to reject any or all proposals, to waive any minor irregularities, to cancel in part or whole this solicitation if it is in the best interests of the City, and to award a contract that will be most advantageous for the City.

The City of Suisun City is an affirmative action and equal opportunity agency.

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F:\BUILDING\3.0 Bids-Projects\Monthly HVAC Contract\2023 Bid\HVAC RFP 2023.docx The City of Suisun City is accepting proposals for the service and maintenance of its HVAC equipment. Please provide a proposal for triennial service of all HVAC equipment at the following locations in Suisun City.

1. City Hall, 701 Civic Center Blvd.

2. Suisun Police Department, 701 Civic Center Blvd.

3. Nelson Community Center, 611 Village Drive

4. Fire Department, 621 Pintail Drive

5. Senior Center, 318 Merganser

6. Public Works Service Ctr., 4555 Peterson Road

7. Train Depot, 177 Main Street

8. Harbor Theater, 720 Main Street

9. Burdick Center, 1101 Charleston Street

10. Harbor Master Building, 800 Kellogg Street

To facilitate the process, a list of equipment is provided. See the attached schedule. The successful proposer will be required to verify the list of equipment prior to the execution of an agreement.

Mandatory Pre-Bid Meeting will be on March 15, 2023 at 10:00 am and will start at the City Hall at 701 Civic Center Blvd.

Quarterly service shall include at least:

1. Check and set time clocks and thermostats.

2. Provide and replace filters with hi efficiency pleated filters.

3. Check and tighten belts. Provide and replace belts if worn.

4. Inspect all moving parts.

5. Check equipment general conditions and proper operation.

6. Check bearings. Lube, if needed.

7. Check coil condition.

8. Check and clean burners and pilots and adjust as necessary.

9. Check fluid levels. Add fluids as necessary.

Annual service shall include in addition to the items in the Quarterly Service and at least:

1. Coil, evaporator and condenser cleaning.

2. Temp rise and heat exchanger inspection by camera

3. Check contactors

It is the intent to award the contract for all locations. The City reserves the right to change or modify the scope of the work. For City budgeting purposes please provide the annual cost for the service requested itemized by location.

Indicate the prevailing wage hourly rate to be charged for all maintenance and/or repair work for charges for work over and above that included in the base contract (i.e., emergency repairs).

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F:\BUILDING\3.0 Bids-Projects\Monthly HVAC Contract\2023 Bid\HVAC RFP 2023.docx The award of the contract will be based on a combined consideration of the total anticipated annual cost for the service, and repairs and on the qualifications of the contractor.

Although there is a HVACs list enclosed, it is the reasonable for the contactor to verify the list for their bid.

Contractors will need to provide a job reference list. Contractor must have, at minimum, a C20, B, and C10 licenses.

After the contract has been awarded the contractor will need to provide proof of current license(s), obtain a Suisun City Business License and submit insurance certificate naming Suisun City as additionally insured.

All proposals must be received by Wednesday, March 19, 2023, by 2:00 pm at Suisun City Hall, 701 Civic Center Boulevard, Suisun City, CA 94585.

Please direct all questions or proposals to:

Gemma Geluz, Administrative Assistant II
Public Works Department
City of Suisun City
701 Civic Centers Blvd.

City of Suisun City, CA 94585
(707) 421-7340
Email: [email protected]

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1. Advertised March 3, 2023

2. Mandatory Pre-Bid Meeting Wednesday, March 15 at 10:00 AM

3. Deadline for Questions Tuesday, March 21, 2023, at 12:00 noon

4. Opening Date/Deadline for RFPs Wednesday, March 29, 2023, at 12:00 noon

Send Questions To: Gemma Geluz
Public Works Department
Email: [email protected]

**Mail Proposals To: City of Suisun City
Public Works Department
701 Civic Center Blvd.

Suisun City, CA 94585

Hand-Carry Proposals To: City of Suisun City
Public Works Department
701 Civic Center Blvd.

Suisun City, CA 94585

Mark Envelopes: "Suisun City Facilities HVAC Maintenance"

**Bidders mailing proposals should allow a sufficient mail delivery period to insure timely receipt of their proposals by the City.

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F:\BUILDING\3.0 Bids-Projects\Monthly HVAC Contract\2023 Bid\HVAC RFP 2023.docx PART I. REQUEST FOR PROPOSALS
A. GENERAL INFORMATION AND CONDITIONS

1. Purpose: This Request for Proposal is issued so that Suisun City may receive proposals from interested parties for HVAC maintenance at [xx] locations. The city invites all interested and qualified vendors to submit a sealed, written proposal or emailed PDF for the item described in the Scope of Services.

2. Issuing Office: This RFP is issued for City of Suisun City Public Works Dept., 701 Civic Center Blvd., Suisun City, CA 94585. This issuing office is the sole point of contact for this RFP.

3. Nature of Service: The City anticipates, but does not guarantee, that the Nature of Services will remain as outlined in Part III. Negotiations may be required with the successful vendor if the requested services are altered.

4. Outside Discussions Prohibited: By submission of a response to the Request for Proposals, a vendor agrees that during the period following issuance of Request and prior to an award, vendor shall not discuss this procurement with other vendors or any outside party except staff officials of Suisun City.

5. Offeror Responsibility: Each offeror shall fully acquaint itself with conditions and restrictions attending the performance of the contract solicited. Offerors shall state a price that includes all costs reasonably expected to be incurred by Suisun City if proposal accepted.

Offerors are fully responsible for any costs of proposal submissions.

6. Proposal Constitutes Offer: By submitting a proposal, the offeror agrees to be bound by all the terms and conditions set forth in this document. A proposal containing variations from the terms and conditions set forth herein may, in the sole discretion of the City, be declared not responsive. The requirements and conditions set forth in this document will become part of the successful offeror's contractual obligations upon award of the contract.

7. Approval of Suisun City Council: Award of this contract shall not become effective unless and until approved by the Council.

8. Preparation of Proposals: All proposals should be complete and clearly and carefully worded. Proposals must convey all the information requested by the Library. The use of advertising and promotional material is not desired. If a proposal contains less than the required information or if the proposal fails to conform to the essential requirements of the Request for 75 March 3, 2023
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F:\BUILDING\3.0 Bids-Projects\Monthly HVAC Contract\2023 Bid\HVAC RFP 2023.docx Proposals, the City, in its sole discretion, may declare the proposal, in whole or part, not responsive.

9. Inspection of Proposals/Confidential Information: Proposals shall be open for public inspection after contract award except that proprietary or confidential information in any proposal that is clearly marked "confidential" by the offering vendor shall not be disclosed without the written consent of the offering vendor.

10. Questions: Every effort has been made to insure that all information needed by offerors is included herein. If an offeror finds that he cannot complete a proposal without additional information, he must submit written questions to the office designated in the Key Event Dates section. No questions will be accepted by the City after the stated deadline. All questions and replies will be in writing and distributed to all offerors.

11. Proposals signed: All proposals must be signed by a representative of the company authorized to commit to the provisions of the proposal (Part II). Unsigned proposals will be rejected unless an authorized representative is present at the proposal opening and provides the needed signature.

12. Offeror Qualifications: In addition to the information required by this Request for Proposals, the apparent successful offeror must, upon request of the City, furnish any and all information requested by the City to determine offeror's ability to perform the contract.

13. Clarifications: The City reserves the right, at any time after opening and prior to award, to request from any offeror clarification regarding information contained in the offeror's proposal.

14. Award: Award will be made to the responsive offeror(s) whose proposal(s) is/are determined to be the most advantageous to the City, its employees, its users, and the taxpayers of City of Suisun City. The evaluation factors are set forth herein. Factors are included in Part I(C).

Only the factors listed will be used to evaluate proposals. The City reserves the right to reject any or all proposals, in whole or part, to waive any minor irregularities, and to cancel in part or whole this solicitation if it is in the best interest of the City.

B. PROPOSAL REQUIREMENTS

Offeror must respond fully to each requirement stated below and indicate its compliance and understanding:
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1. Offeror should state its understanding of the purpose described in this Request for Proposals.

2. Offeror must agree in its proposal that if it is the successful contractor, it will indemnify and hold the City harmless for claims and damages as required in this Request for Proposals, Part I, A, 16.

3. The offeror must state in its proposal three other business references where offeror has, within the past three years, supplied HVAC maintenance services materially similar to the ones being sought by this solicitation and to what extent it is similar.

The offeror must also summarize in its proposal its work history and experience in performing contracts similar to the one solicited herein.

4. Offeror must state in its proposal the complete name of its company, its address, and its principal place of business. Indicate whether the business is operated by an individual, partnership, or corporation. If applicable, offeror must state in its proposal the name of any subordinate entity that will be performing any portion of the service.

5. The offeror must be the company doing the actual work. No sub-contracting is allowed.

6. Offeror must complete and sign the Certification of Cost.

7. Offeror must sign and have notarized the attached Affidavit of Non-collusion.

8. Offeror must sign and have notarized the attached Affidavit of Nondiscrimination.

9. Offeror must sign and complete the Cost Form.

10. Offeror must state in its proposal that it agrees to bill the City within 30 days (invoice to include PO numbers) for services rendered:

City of Suisun City
701 Civic Center Boulevard
Suisun City, CA 94585

C. EVALUATION CRITERIA

Proposals will be reviewed to determine compliance with all of the requirements of the Request for Proposals. Any proposal failing to meet all essential requirements of the RFP may be rejected.

Each proposal that meets all of the essential requirements of the RFP will be evaluated based on the criteria listed below in relative order of importance.

1. Cost. (35%)

2. Listed References of multi-campus companies for whom you have provided similar services to those listed in the scope of services. (35%)

3. Understanding of the scope and proposed action plan to accommodate all requested work. (25%)

4. Locality (5%)

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PART II. ATTACHMENTS

ATTACHMENT A

CERTIFICATION OF COST

The following certification must be submitted with the offer in the cost section:

I hereby certify that the price included in this proposal is accurate and binding for ninety days, beginning from the proposal due date and that all charges and estimates are, to the best of my knowledge, accurate and complete.

OFFEROR

Firm Name:

Address:

City, State Zip

Signature:

F.E.I.N.

SOCIAL SECURITY NO.:

Failure to furnish your F.E.I.N. or Social Security Number will result in the delay of contract.

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ATTACHMENT B

AFFIDAVIT OF NON-COLLUSION

INSTRUCTIONS: Each offeror submitting a proposal must complete this Affidavit of Non- collusion. This sworn statement will be considered part of the offeror's proposal.

PROJECT NAME: Suisun City Facilities HVAC Maintenance

SOLICITATION DOCUMENTS DATED: March 3, 2023
OPENING DATE: Wednesday, March 29, 2023 at 2 pm

STATE OF

COUNTY OF

Personally appeared before me , who being duly sworn, says that he is a member of the firm of , and that his firm, association, or corporation, has not, either directly or indirectly, entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in connection with the submission of a proposal on the above-named project.

OFFEROR

Firm Name

Signature

SWORN and subscribed to before me this day of , 20 (L.S.) Notary Public for
My commission expires:

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ATTACHMENT C

AFFIDAVIT OF NONDISCRIMINATION

Offeror certifies that, during the performance of all obligations under its contract with the Library, the offeror will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin; that it will take affirmative action to insure that applicants are employed and employees are treated during employment without regard to race, color, religion, sex, national origin; that all solicitations or advertisements for employees placed by or on behalf of the offeror shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin.

Offeror

SWORN and subscribed to before me this day of , 20

(L.S.)

Notary Public for
My commission expires:

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ATTACHMENT D

COST FORM

(Offeror’s Name) agrees to perform the services as outlined in this Request for Proposals for the following cost:

Please price each location individually for its contract price for 1 year. In addition please list the hourly labor rate that will be billed for any services outside of the scope of the contract.

Annual Cost per Location:

LOCATION COST
City Hall, 701 Civic Center Blvd. $
Suisun Police Department, 701 Civic Center Blvd. $
Suisun Fire Station, 621 Pintail Drive $
Nelson Community Center, 611 Village Drive $
Senior Center, 318 Merganser $
Public Works Service Ctr., 4555 Peterson Road $
Train Depot, 177 Main Street $
Harbor Theater, 720 Main Street $
Burdick Center, 1101 Charleston Street $
Harbor Master Building, 800 Kellogg Street $
Hourly Rate Cost per hour (services outside of scope) $ per hour After-hours Cost per hour $ per hour

The cost above does does not include Suisun City Sales Tax. If Suisun City Sales/Use Tax is charged, it must also be itemized on all invoices.

Offeror's / Authorized Signature

Date

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F:\BUILDING\3.0 Bids-Projects\Monthly HVAC Contract\2023 Bid\HVAC RFP 2023.docx PART III. SCOPE OF SERVICES

Suisun City HVAC Maintenance

Scope of Services

The City of Suisun City is seeking proposals for HVAC maintenance for 10 locations throughout the City. Contracted services should include 6 site visits per year for preventive maintenance services. These PM’s should include filter changes at each visit along with belt replacement and coil cleanings as needed. Please also provide a list of all things to be inspected during a normal PM visit. These services should be included in the base contract price per location.

In addition to the base contract price please provide a trip charge price and an hourly rate for any standard hours service calls.

Provide in your response the after-hours trip charge and hourly rate if different from the standard hours rate. Include the times and days that standard rates and after-hours rates apply.

Please let us know if you have service plumbers and electricians on staff, and if so what their respective trip charges and hourly rates would be also, both standard and after-hours if applicable.

Attached to this solicitation is an Excel file that contains as current a list of all HVAC equipment at each location as we currently have. Addresses for each location are provided below, and while site visits to each facility are not required, they are highly recommended. We would like you to be familiar with all equipment locations, and any barriers to access that may be present.

The City would like all work that is possible to be completed during normal operating hours to be done so, but we do need the availability of the winning offeror to be able to work off hours when necessary to try to keep impact on customers and staff to a minimum (these off hours jobs would be scheduled beforehand).

On-call, 24-hour service availability is required of the contracted vendor.

Contractor must have, at minimum, a C20, B, and C10 licenses. 82 EXHIBIT B-1 CONTRACT SVR AGR
WITH S.H. Mechanical Inc.

K:\Public Works\0 Resos & Agendas \FY23\5-23-2023\HVAC Contract\Contract Services Agreement - S. H. Mechanical Inc - Citywide HVAC Services.docx
EXHIBIT “B”

SCHEDULE OF COMPENSATION

See Attachment

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EXHIBIT C-1 CONTRACT SVR AGR
WITH S.H. Mechanical Inc.

K:\Public Works\0 Resos & Agendas \FY23\5-23-2023\HVAC Contract\Contract Services Agreement - S. H. Mechanical Inc - Citywide HVAC Services.docx
EXHIBIT “C”

PROVISIONS REQUIRED FOR PUBLIC WORKS CONTRACTS
PURSUANT TO CALIFORNIA LABOR CODE SECTION 1720 ET SEQ.

HOURS OF WORK:

A. In accordance with California Labor Code Section 1810, 8 hours of labor in performance of the services described in Exhibit A shall constitute a legal day’s work under this contract.

B. In accordance with California Labor Code Section 1811, the time of service of any worker employed in performance of the services described in Exhibit A is limited to eight hours during any one calendar day, and forty hours during any one calendar week, except in accordance with California Labor Code Section 1815, which provides that work in excess of eight hours during any one calendar day and forty hours during any one calendar week is permitted upon compensation for all hours worked in excess of eight hours during any one calendar day and forty hours during any one calendar week at not less than one-and- one-half times the basic rate of pay.

C. The Consultant and its subcontractors shall forfeit as a penalty to the City $25 for each worker employed in the performance of the services described in Exhibit A for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day, or more than 40 hours in any one calendar week, in violation of the provisions of California Labor Code Section 1810 and following.

WAGES:

A. In accordance with California Labor Code Section 1773.2, the City has determined the general prevailing wages in the locality in which the services described in Exhibit A are to be performed for each craft or type of work needed to be as published by the S tate of California Department of Industrial Relations, Division of Labor Statistics and Research, a copy of which is on file in the City Public Works Office and shall be made available on request. The Consultant and subcontractors engaged in the performan ce of the services described in Exhibit A shall pay no less than these rates to all persons engaged in performance of the services described in Exhibit A.

B. In accordance with Labor Code Section 1775, the Consultant and any subcontractors engaged in performance of the services described in Exhibit A shall comply Labor Code Section 1775, which establishes a penalty of up to $50 per day for each worker engaged in the performance of the services described in Exhibit A that the Consultant or any subcontractor pays less than the specified prevailing wage. The amount of such penalty shall be determined by the Labor Commissioner and shall be based on consideration of the mistake, inadvertence, or neglect of the Consultant or subcontractor in failing to pay the correct rate of prevailing wages, or the previous record of the Consultant or subcontractor 85 EXHIBIT C-2 CONTRACT SVR AGR
WITH S.H. Mechanical Inc.

K:\Public Works\0 Resos & Agendas \FY23\5-23-2023\HVAC Contract\Contract Services Agreement - S. H. Mechanical Inc - Citywide HVAC Services.docx
in meeting applicable prevailing wage obligations, or the willful failure by the Consultant or subcontractor to pay the correct rates of prevailing wages. A mistake , inadvertence, or neglect in failing to pay the correct rate of prevailing wages is not excusable if the Consultant or subcontractor had knowledge of their obligations under the California Labor Code. The Consultant or subcontractor shall pay the differe nce between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate. If a subcontractor worker engaged in performance of the services described in Exhibit A is not paid the general prevailing per diem wages by the subcontractor, the Consultant is not liable for any penalties therefore unless the Consultant had knowledge of that failure or unless the Consultant fails to comply with all of the following requirements:

1. The contract executed between the Consultant and the subcontractor for the performance of part of the services described in Exhibit A shall include a copy of the provisions of California Labor Code Sections 1771, 1775, 1776, 1777.5, 1813, and 1815.

2. The Consultant shall monitor payment of the specified general prevailing rate of per diem wages by the subcontractor by periodic review of the subcontractor’s certified payroll records.

3. Upon becoming aware of a subcontractor’s failure to pay the specified prevailing rate of wages, the Consultant shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for performance of the services described in Exhibit A.

4. Prior to making final payment to the subcontractor, the Consultant shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages for employees engaged in the performance of the services described in Exhibit A and any amounts due pursuant to California Labor Code Section 1813.

C. In accordance with California Labor Code Section 1776, the Consultant and each subcontractor engaged in performance of the services described in Exhibit A shall keep accurate payroll records showing the name, address, social security number, work, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in performance of the services described in Exhibit A. Each payroll record shall contain or be verifie d by a written declaration that it is made under penalty of perjury, stating both of the following:

1. The information contained in the payroll record is true and correct.

86 EXHIBIT C-3 CONTRACT SVR AGR
WITH S.H. Mechanical Inc.

K:\Public Works\0 Resos & Agendas \FY23\5-23-2023\HVAC Contract\Contract Services Agreement - S. H. Mechanical Inc - Citywide HVAC Services.docx

2. The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work performed by the employer’s employees on the public works project.

The payroll records required pursuant to California Labor Code Section 1776 shall be certified and shall be available for inspection by the Owner and its authorized representatives, the Division of Labor Standards Enforcement, the Division of Apprenticeship Standards of the Department of Industrial Relations and shall otherwise be available for inspection in accordance with California Labor Code Section 1776.

D. In accord ance with California Labor Code Section 1777.5, the Consultant, on behalf of the Consultant and any subcontractors engaged in performance of the services described in Exhibit A, shall be responsible for ensuring compliance with California Labor Code Section 1777.5 governing employment and payment of apprentices on public works contracts.

E. In case it becomes necessary for the Consultant or any subcontractor engaged in performance of the services described in Exhibit A to employ for the services described in Exhibit A any person in a trade or occupation (except executive, supervisory, administrative, clerical, or other non manual workers as such) for which no minimum wage rate has been determined by the Director of the Department of Industrial Relations, the Contractor shall pay the minimum rate of wages specified therein for the classification which most nearly corresponds to services described in Exhibit A to be performed by that person. The minimum rate thus furnished shall be applicable as a minimum for such trade or occupation from the time of the initial employment of the person affected and during the continuance of such employment.

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AGENDA ITEM NO. 11

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Council Adoption of Resolution 2023-___: Authorizing the City Manager to Enter into a Construction Contract on the City’s Behalf with Dryco Construction, Inc. for the 2023 Slurry Seal Project.

FISCAL IMPACT:

There would be no impact to the General Fund from this item. The 2023 Slurry Seal Project (Project) will be 100% funded by Senate Bill 1 (SB1) allocations funds, currently totaling $744,753.00 in this fiscal year.

STRATEGIC PLAN:

Provide Good Governance, Ensure Public Safety, and Enhance the Environment.

BACKGROUND:

The City of Suisun City is responsible for the maintenance of nearly 153 lane miles of roadway with over 13 million square feet of pavement. The goal of the Suisun City Pavement Management Program is to maintain the city’s pavement in the best condition possible given the available funding. One roadway maintenance option is to perform preventive maintenance treatments as opposed to rehabilitation or reconstruction treatments on city streets that are in good condition.

Preventative maintenance projects are intended to extend the life of the pavement on streets and avoid costlier rehabilitation or reconstruction projects. Road reconstruction is only considered when preventive maintenance treatments are no longer feasible. The cost of reconstructing a street can exceed ten times the cost of performing a preventative maintenance treatment.

On February 15, 2022, the City Council approved Resolution 2022-19 approving the list of roadway projects for Fiscal Year 2022-23 to comply with the requirements of SB1 and staff submitted the adopted Resolution to the California Transportation Commission prior to July 1, 2022 to meet funding requirement. The list of projects includes a slurry seal project for the following street segments: 1) Main Street from the Train Depot to the southerly terminus of Main Street, 2) Catalina Circle, 3) Harbor Park Drive, 4) Breakwater Circle, 5) Catamaran Way, 6) Pepperwood Street, 7) Floyd Court, 8) Anderson Drive from Lawler Ranch Parkway to McCoy Creek, 9) Hoyt Court, 10) Lawler Ranch Parkway from Mayfield Way to Potrero Street, 11) Emperor Drive from Highway 12 to Pintail Drive, and 12) Capistrano Drive.

STAFF REPORT:

The construction documents for the 2023 Slurry Seal Project were advertised in the Daily Republic newspaper on March 29, 2023, and again on April 5, 2023. The Project will slurry seal the above-listed street segments and will also include Rocky Point Cove, which is a short court off of the Harbor Park Drive. The Project scope will also include crack sealing, digout repairs, and striping.

Bids were opened on April 20, 2023, at 2:00 PM, at which time six (6) bids were received. Staff has reviewed the low bidder’s proposal and bid documents. Staff has determined that the bid submitted by Dryco Construction, Inc. is the lowest responsive bid.

89 The six bids received for the Project are as follows:

Company Base Bid
Engineer’s Estimate $595,791.75

Dryco Construction, Inc. $599,969.88 VSS International $684,000.00 Graham Construction ,Inc. $698,036.46 Northwest Paving, Inc. $751,651.00 Pavement Coatings Co. $754,299.95 Doolittle Construction $797,797.00

Given that the construction budget is enough to cover the construction contract cost for the Project, staff recommends awarding the construction contract in the amount of $599,969.88 to Dryco Construction, Inc., including a 15% contingency ($89,995.48) for a maximum contract cost of $689,965.36

STAFF RECOMMENDATION:

It is recommended that the City Council adopt Resolution No. 2023- ___: Authorizing the City Manager to Enter into a Construction Contract on the City’s Behalf with Dryco Construction, Inc. for the 2023 Slurry Seal Project.

DOCUMENTS ATTACHED:
1 .

Authorizing the City Manager to Enter into a Construction Contract on the City’s Behalf with Dryco Construction, Inc. for the 2023 Slurry Seal Project. 2 .

Construction Contract for 2023 Slurry Seal Project
3 .

Project Location Map.

PREPARED BY:

Amanda Dum, Management Analyst II
REVIEWED BY:

Nouae Vue, Public Works Director
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:
1 Resolution Authoriizing Construction Constract with Dryco Construction for 2023 Slurry Seal Project.pdf
2 Construction Contract for 2023 Slurry Seal Project.pdf 3 Slurry Seal Location Map.pdf
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28 RESOLUTION NO. 2023-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSTRUCTION
CONRACT ON THE CITY’S BEHALF WITH DRYCO CONSTRUCTION, INC. FOR THE 2023 SLURRY SEAL PROJECT

WHEREAS, the City is res ponsible for the maintenance of nearly 153 lane miles of roadway with over 13 million square feet of pavement; and WHEREAS, on February 15, 202 2, the City Council approved Resolution 20 22-19 approving the list of Senate Bill 1 pavement resurfacing projects for Fiscal Year 2022-23; and WHEREAS, on March 21, 2023, the City Council approved Resolution 20 23-24 approving the list of Senate Bill 1 pavement resurfacing projects for Fiscal Year 2023-24; and WHEREAS, the Senate Bill 1 list of projects for FY 2022-23 and FY 2023-24 includes slurry sealing the following streets: 1) Main Street from Train Depot to southerly terminus, 2) Catalina Circle, 3) Harbor Park Drive, 4) Breakwater Circle, 5) Catamaran Way, 6) Pepperwood Street, 7) Floyd Court, 8) Anderson Dr ive from Lawler Ranch Parkway to McCoy Creek, 9) Hoyt Court, 10) Lawler Ranch Parkway from Mayfield Way to Potrero Street, 11) Emperor Drive from Highway 12 to Pintail Drive, and 12) Capistrano Drive; and WHEREAS, the 2023 Slurry Seal Project (Project) wi ll slurry seal t he above-listed streets, including Rocky Point Cove, which is a short court off of the above-listed Harbor Park Drive; and
WHEREAS, the construction documents for the Project were advertised on March 29, 2023 and again on April 5, 2023 in the Daily Republic newspaper; and WHEREAS, six (6) sealed bid proposals were received by the City on April 20, 2023, by 2:00 pm, and the bids were opened and read aloud; and WHEREAS, Dryco Construction, Inc. provided the lowest responsive bid of $599,969.88 for the 2023 Slurry Seal Project (Project).

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Suisun City authorizes the City Manager to enter into a construction contract on behalf of the City with Dryco Construction, Inc. for th e 2023 Slurry Seal P roject in the amount of $599,969.88, including a 1 5% contingency ($ 89,995.48) for a total construction cost of $689,965.36, and to take any and all necessary and appropriate actions to implement this contract.
91 Resolution No. 2020-
Adopted August 10, 2020

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PASSED AND ADOPTED at a Regular Meeting of th e City Council of the City of Suisun City duly held on Monday, the 23rd of May 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of the City of Suisun City this 23rd of May 2023.

Anita Skinner
City Clerk
92 20
Suisun City Public Works Dept. 2023 Slurry Seal Project

AGREEMENT

THIS AGREEMENT, made and entered into this _______ ___day of _________________, 2023, by and between the City of Suisun City, California, hereinafter called "City", and________________________ hereinafter called "Contractor".

WITNESSETH: That the parties hereto do mutually agree as follows:

ARTICLE I

For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by said City said Contractor agrees with said City to perform, and complete in a workmanlike manner all work required under the City's Drawings and Specifications entitled:

2023 Slurry Seal Project

in accordance with the Specifications and Drawings therefore, to furnish at his own expense all labor, materials, equipment and services as may be stipulated in said Specifications to be furnished by said City , and to do everything required by this Agreement and the said Specifications.

ARTICLE II

For furnishing all said labor, materials, equipment, tools and services, furnishing and resurfacing the streets, and doing everything required by this Agreement and the said Specifications; also, for all losses and damage arising out of the nature of the work aforesaid, or from the action of the elements, or from any unforeseen difficulties which may arise during the prosecution of the work until its acceptance by said City, and for all risks of every description connected with the work; also, for all expenses resulting from the suspension or discontinuance of work, except as in the said Specifications are expressly stipulated to be borne by said City; and for completing the work in accordance with the requirements of said Drawings and Specifications as directed by the Engineer, said City will pay and said Contractor shall receive, in full compensation therefore, the price(s) named in the Proposal.

ARTICLE III

The City hereby employs said Contractor to perform the work according to the terms of this Agreement for price(s) named in the Proposal, and agrees to pay the same at the time, in the manner, and upon the conditions stipulated in the said Specifications; and the said parties for themselves, their heirs, executors, administrators, successors, and assigns, do hereby agree to the full performance of the covenants herein contained.

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Suisun City Public Works Dept. 2023 Slurry Seal Project

ARTICLE IV

The Notice to Contractors, Special Notice, Special Provisions Book, Bidder’s Book including the Proposal, and Information Required of Bidder, along with the Contract Documents and all addenda issued by the City with respect to the foregoing prior to the opening of bids, are hereby incorporated in and made part of this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the day and year first above written.

CITY OF SUISUN CITY, CALIFORNIA

By
(City Manager)

(SEAL)
(City Clerk)

CONTRACTOR

(Contractor)

By
(Signature)

(Title)

94 Slurry Seal Project
Location Map
95 THIS PAGE INTENTIONALLY LEFT BLANK
96 AGENDA ITEM NO. 12

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Council Adoption of Resolution No. 2023-____: A Resolution of the City Council of the City of Suisun City Accepting the Annual Comprehensive Financial Report (ACFR), the Report of Federal Awards in Accordance with OMB Circular A-133, and the Measure S General Transactions and Use Tax Audit for Fiscal Year 2021-2022.

FISCAL IMPACT:

There would be no fiscal impact associated with the acceptance of the proposed Resolution.

STRATEGIC PLAN:

Provide Good Governance, Section 4.1 – Review and update required planning and financial documents as needed for transparency.

BACKGROUND:

The City is required to undergo an independent audit
in compliance with California
Government Code Sections 25250 and 25253. The Finance Department prepared the ACFR in conformance with the principles and standards for financial reporting set forth by the Government Accounting Standards Board (GASB). The City is also mandated to have an
independent, annual single audit in conformity with the provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget Circular A-133 Compliance Supplement. The annual audit is performed for every fiscal year. Selection of auditor goes through an RFP (Request for Proposal) process. The City awarded the audit services contract to Chavan and Associates, LLP in 2021 for fiscal year 2021-22, 2022-23 and 2023-24.

STAFF REPORT:

Chavan & Associates, LLP (C&A), an external auditing firm, has completed its fieldwork and has provided the City with the necessary adjustments to the general ledger. The

Annual Comprehensive
Financial Report (ACFR)

(Attachment 2
) summarizes the results of operations of all Funds for the Fiscal Year ending June 30, 2022. C&A has determined that the City has a clean audit report.

The Government Accounting Standards Board (GASB) issues number of statements to set forth any changes in reporting requirements. GASB Statement Number 34 (GASB 34) required numerous changes to the presentation of the ACFR. With this ACFR, the City has fully implemented GASB 34.

With this implementation, the financial report contains two statements: the Government-Wide Financial Statements and the Fund Financial Statements.

The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances. As of June 30, 2022, the City’s assets were $181.3 million, its deferred outflow of resources was $5.7 million, liabilities were $28.9 million, deferred inflow of resources was $11.0 million and its net position was $147.1 million, as illustrated on ACFR page 40-41.

GASB 68 requires changes in how the City reports its long-term pension obligations beginning in FY 2014-15. The new accounting standards provide additional transparency on long-term pension obligations in annual financial reports. Net pension liabilities are reported on the City-wide balance sheet, providing citizens and others a clearer picture of the size and nature of the financial obligations owed to current and former employees for pension benefits. GASB 68 requires governments providing 97 defined benefit pensions to recognize their long-term obligation for pension benefits as a liability.

Previously, the City, like most California cities, had only reported the Annual Required Contribution (ARC) to the pension plan in its financial reports. Now, the Net Pension Liability must be recorded in the balance sheet.

As a long-term obligation, the Net Pension Liability is not recorded in the modified accrual basis financial statements for governmental funds. The liability impact is limited to the Government-Wide Financial Statements and does not impact the modified accrual current resources focus of the General Fund, other governmental funds, or the budget-to-actual comparison. Therefore, the General Fund, the Housing Authority Fund and other governmental funds will not contain this liability; their liability is reported in the Government-Wide Financial Statements.

The accounting valuation for financial reporting actuarial study determines the total liability of the pension plan. To determine the Net Pension Liability, the City contracted with CalPERS (California Public Employees Retirement System) to prepare GASB 68 Accounting Valuation Reports for all five of the City’s retirement plans. As of June 30, 2022, the City’s reported net pension liability for its proportionate shares of the net pension liability of each Plan are as follows:

Proportionate Share of Net Pension
Liability/(Asset)
Miscellaneous
$ 5,353,033
Safety
$
6,911,701
Total Net Pension Liability
$12,264,734
Detailed information on the pension plan can be found on ACFR Note 9, pages 89-94.

In June 2015, GASB released new accounting standards for postretirement benefit programs, GASB 74 and GASB 75. In August 2018, the City released a request for proposal for actuarial valuation of retiree health insurance as of June 30, 2018. The City selected Dempsey, Filliger & Associates, LLC (DFA) to perform the actuarial report on an annual basis.

As of June 30, 2022, the City’s reported Other Post Employment Benefit (OPEB) is $3,010,150.

The City has not adopted an irrevocable trust for the pre-funding of retiree healthcare benefits. The City operates in a Pay-As-You-Go Plan and contributes $140 per month on behalf of all eligible retirees and surviving spouses, who are responsible for the premium costs of their selected health plan.

Detailed information on OPEB plan can be found on ACFR Note 10, page 87-90.

The Fund Financial Statements focus on short-term inflows and outflows of spendable resources and the remaining year-end balances available for spending. This information is useful in evaluating the City’s near-term financing requirements.

As shown on ACFR pages 47, the General Fund balance as of June 30, 2022, is $10,186,831. The net change in fund balance is an increase of $2,693,545 A summary of the variances is presented on the table below:

98 Fiscal Year 2021-22 General Fund – Revenues and Expenditures

Final Adopted Budget
Actual Amounts

Variance with Final
Budget Positive
(Negative)
Taxes-Property

2,448,797

2,903,119

454,322
Taxes-Transient
Occupancy

698,000

631,407
`
(66,593)
Sales Tax

3,293,702

3,176,423

(117,279)
Sales & Use Tax
(Measure S)

3,550,648

3,725,188

174,540
License & Permits

1,377,900

1,772,524

394,624
Fines & Forfeitures

423,500

242,734

(180,766)
Intergovernmental
Revenues

3,331,539

3,069,779

(261,760)
Charges for Services

3,389,694

3.489,653

99,959
Investment Earnings

54,500

(401,739)

(456,239)
Other Revenues

117,800

182,915

65,115

Total Revenues

18,686,080

18,792,003

105,923

Total Expenditures

21,362,144

18,606,329

2,755,815
Other Financing
Sources/(Uses)

2,268,539

2,507,871

239,332
Net Change in Fund
Balance

(407,525)

2,693,545

3,101,070
Fund Balance Beginning,
July 1 2021

7,493,286

-
Fund Balance Ending,
June 30 2022

7,085,761

10,186,831

For FY 2021-22, overall General Fund revenue was higher compared to the budget by $105,923. The modest net positive revenue variance is a result of higher Property Tax, Sales & Use Tax, License and Permits and Charges for Services. The negative investment earnings were mainly the result of a decrease in interest income which was caused by declines in the fair market value of pooled cash and investments. Unrealized losses reflect market values at a point in time and will vary day-to-day.

However, losses are only monetized, or “realized,” when a security is sold. If fixed-income investments 99 are held to maturity, unrealized losses dissipate, and the full principal is returned at maturity.

The General Fund actual expenditures were lower by $2,755,815 from the budget excluding emergency reserves. Almost all Departments ended with lower expenditures compared to the budget. Most of the unexpended budget came from public safety due to delay in hiring the budgeted positions. Measure S funded projects such as Fire Station Remodel & Clean California Grant funding match have been rescheduled. The detailed comparison of the budget to actual can be found on ACFR page 102.

In terms of Other Financing Sources and Uses, most of the transfers in and out of the general fund are related to landscape and lighting districts spending. One major transfer in comes from the American Rescue Plan Act (ARPA) funding, a one-time source of revenue to cover for revenue loss incurred during the pandemic.

The Statement of Revenues, Expenditures and Changes in Fund Balance for the City’s major funds are illustrated, starting on ACFR page 47. Individual financial statements for the City Funds are available at the beginning of ACFR page 116. The former Redevelopment Agency financial information is now classified as a Private Trust Fund; statements can be found on ACFR pages 56-57 along with Custodial Funds.

The following sections of the ACFR can be found on the following pages:

Independent Auditor’s Report – Page 17-19
Management’s Discussion and Analysis – Page 22-35
Notes to Financial Statements – Page 61-98
Custodial (Fiduciary) Funds Statements – Page 190-197
Statistical Section – Page 203-221

SINGLE AUDIT REPORT-REPORT ON FEDERAL GRANT AWARDS AUDIT REPORT Referring to attachment no. 3 - a copy of the Report on Federal Awards in Accordance with federal Office of Management and Budget (OMB) Circular A-133 for FY 2021-22. The report analyzes the City and Housing Authority compliance with OMB Circular A-133 regarding federally funded programs, including police grants, street improvement grants, capital improvement grants, and Section 8 housing grants.

The single audit reported no findings.

Additional information is available upon request to the Accounting Department.

MEASURE S GENERAL TRANSACTIONS AND USE TAX AUDIT REPORT (ORDINANCE NO. 742)
Referring to attachment no. 4 is a copy of the Measure S General Transactions and Use Tax Audit for FY 2021-22. The statement represents the revenues and expenditures for the Measure S General Transactions and use tax under Ordinance No. 742 of City of Suisun City (the “City”) for the year ended June 30, 2022. The report was submitted and accepted by the General Tax Oversight (Measure S) Committee on February 10, 2023.

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STAFF RECOMMENDATION:

It is recommended that the City Council review and adopt Resolution No. 2023-____: A Resolution of the City Council of the City of Suisun City Accepting the Annual Comprehensive Financial Report (ACFR), the Report of Federal Awards in Accordance with OMB Circular A-133, and the Measure S General Transactions and Use Tax Audit for Fiscal Year 2021-2022.

DOCUMENTS ATTACHED:
1 .

Resolution No. 2023-____: Accepting the Annual Comprehensive Financial Report (ACFR), the Report on Federal Awards in Accordance with OMB Circular A-133, and the Measure S General Transactions and Use Tax Audit for fiscal year 2021-2022. 2 .

Annual Comprehensive Financial Report (ACFR) for FY 2021-22* (Due to size the attachment is available online at: https://www.suisun.com/files/sharedassets/suisuncity/departments/finance- department/documents/financial-statements/2022-acfr.pdf) 3 .

Single Audit Report-Report on Federal Awards in Accordance with federal Office of Management and Budget (OMB) Circular A-133 for FY 2021-22 4 .

Measure S General Transactions and Use Tax Audit (Ordinance No. 742)

PREPARED BY:

Elizabeth Luna, Accounting Services Manager
REVIEWED BY:

Lakhwinder Deol, Finance Director
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:
1 Resolution Accepting the ACFR Federal Awards and Measure S FY 2021-22.pdf 3 Single Audit Report on Federal Awards in Accordance with OMB Circular A-133 FY 2021-2022.pdf 4 Measure S General Transactions and use Tax Audit Report.pdf 101

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RESOLUTION NO. 2023-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR),

THE REPORT ON FEDERAL AWARDS IN ACCORDANCE WITH
OMB CIRCULAR A-133, AND THE MEASURE S GENERAL TRANSACTIONS AND USE TAX AUDIT FOR FISCAL YEAR 2021-2022.

WHEREAS, the City of Suisun City endeavors to manage its financial affairs in a prudent and professional manner, consistent with Generally Accepted Accounting Practices; and
WHEREAS, an annual audit conducted b y outside auditors is an essential method to ensure we meet this goal of fiscal prudence; and
WHEREAS, the accounting firm of Chavan & Associates, LLP (C&A) conducted the audit and concluded that the City’s financial statements “present fairly in all mate rial respects the respective financial position of the governmen tal activities, each major fund, and the aggregate remaining fund information of the City of Suisun City, California, as of June 30, 2022”; and
WHEREAS, the City of Suisun City’s Annual Comprehensive Financial Report (ACFR), the Report on Federal Awards in A ccordance with OMB Circular A -133, and the Measure S General Transactions and Use Tax Audit for fiscal year 2021-2022, was presented to the City Council for its review and acceptance.

NOW, THEREFORE, BE IT RESOLVED that the City Council of Suisun City hereby accepts the Annual Comprehensive Financial Report (ACFR), the Report on Federal Awards in Accordance with OMB Circular A -133 and the Measure S General Transactions and Use Tax Audit for fiscal year 2021-2022.

PASSED AND ADOPTED at a Regular Meeting of the City Council of the City of Suisun City held on Tuesday the 23rd day of May 2023 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers: __
ABSENT: Councilmembers: __
ABSTAIN: Councilmembers: __
WITNESS my hand and the seal of said City this 23rd day of May 2023.

Anita Skinner
City Clerk
102
Cha
van & Associates, LLP
Certified Public Accountants
15105 Concord Circle, Ste 130
Morgan Hill, CA 95037

CITY OF SUISUN CITY

CALIFORNIA
SI

NGLE AUDIT REPORT
FOR

THE FISCAL YEAR
ENDED JUNE 30, 2022
103

CITY OF SUISUN CITY

CALIFORNIA

SINGLE AUDIT REPORT

TABLE OF CONTENTS
JUNE 30, 2022

PAGE NO.

Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................. 1 - 2

Independent Auditor’s Report on Compliance for Each Major Federal Program and Report on Internal Control Over Compliance in Accordance, and Report on the Schedule of Expenditures of Federal Awards Required by Uniform Guidance .......................................................................................................... 3 - 5

Schedule of Expenditures of Federal Awards ...................................................................... 6

Notes to Schedule of Expenditures of Federal Awards ....................................................... 7

Schedule of Findings and Questioned Costs:

Section I - Summary of Auditor’s Results ..................................................................... 8 Section II - Financial Statement Findings ...................................................................... 9 Section III - Federal Awards Findings and Questioned Costs........... ............................ 9

Summary Schedule of Prior Year Findings ......................................................................... 10

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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and Members of the
City Council of the City of Suisun City
City of Suisun City, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Suisun City (the “City”) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City ’s basic financial statements, and have issued our report thereon dated March 23, 2023.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City ’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances fo r the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City ’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determina tion of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not 105

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express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Morgan Hill, California
March 23, 2023
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INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR THE MAJOR FEDERAL

PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE, AND

REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

REQUIRED BY THE UNIFORM GUIDANCE

To the Honorable Mayor and Members of the
City Council of the City of Suisun City
City of Suisun City, California

Report on Compliance for Each Major Federal Program

Opinion on Each Major Federal Program

We have audited the City of Suisun City (the City)'s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major federal programs

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibili ties, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal programs. Our audit does not provide a legal determination of the City ’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.

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Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal programs.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City ’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City ’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.

A significant deficiency in internal control over compliance is a deficiency , or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

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Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of City as of and for the year ended June 30, 2022, and have issued our report thereon d ated March 23, 2023, which contained an unmodified opinion on those financial statements. Our audit was performed for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements.

The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such info rmation directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the financial statements as a whole.

March 23, 2023
Morgan Hill, California
109

CITY OF SUISUN CITY, CALIFORNIA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.

6 Federal
Catalog Pass
Number Through Federal
Federal Grantor/Pass-Through Grantor/Program Title (CFDA) Number Expenditures U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Section 8 Housing Choice Vouchers 14.871 N/A 2,459,912$ Community Development Block Grant 14.228 N/A 39,900
Total U.S. Department of Housing and Urban Development 2,499,812 U.S. DEPARTMENT OF TRANSPORTATION
Passed Through California Department of Transportation:

Highway Planning and Construction
Railroad Avenue Overlay(Pavement) 20.205 CML 5032 (034) 485,892 RRFB Project - Rectangular Rapid Flashing Beacon 20.205 HSIPL 5032 (033) 207,134 Passed Through California Office of Traffic Safety
Traffic Records Improvement Project 20.616 SC14421 5,900 Total U.S. Department of Transportation 698,926
U.S. DEPARTMENT OF TREASURY
Pass-through program from the State of California
Coronavirus State and Local Fscal Recovery Funds 21.027 (1) N/A 2,470,160 Total U.S. Department of Treasury 2,470,160
TOTAL EXPENDITURES OF FEDERAL AWARDS 5,668,898$
(1) Audited as major program
Note: There were no federal grants passed through to subrecipients 110

CITY OF SUISUN CITY, CALIFORNIA

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
7 Note 1. Basis of Presentation

The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of the City of Suisun City (the City) under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget Title 2 U.S. Code of Federal Regulations (CFR) Part 200 , Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City , it is not intended to and does not present the financial position, changes in net position, or cash flows of the City and some amounts in this schedule may differ from amounts presented in the City’s financial statements.

Note 2. Summary of Significant Accounting Policies

Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass -through entity identifying numbers are presented where available. The City has elected not to use the 10 percent de - minimus indirect cost rate as allowed under Uniform Guidance.

Note 3. Relationship to the Basic Financial Statements

The amounts reported in the accompanying schedule agree, in all material respects, to amounts reported within the City’s financial statements. Federal award revenues are reported prin cipally in the City ’s financial statements as intergovernmental revenues.

Note 4. Relationship to Federal Financial Reports

Amounts reported in the accompanying schedule agree or can be reconciled with the amounts reported or to be reported in the federal financial reports.

Note 5. Pass-Through Entities' Identifying Number

When federal awards were received from a pass- through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass -through entity. When no identifying number is shown, the City has determined that no identifying number is assigned for the program, or the City was unable to obtain an identifying number from the pass-through entity. 111

CITY OF SUISUN CITY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
8 Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:

Material weaknesses? Yes x No
Significant deficiencies identified not
considered to be material weaknesses? Yes x None Reported Non-compliance material to financial statements noted? Yes x No Federal Awards
Internal control over major programs:

Material weaknesses? Yes x No
Significant deficiencies identified not
considered to be material weaknesses? Yes x None Reported Type of auditor's report issued on compliance over major programs Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a) Yes x No
Identification of Major Programs:

CFDA Numbers
Name of Federal Program
Coronavirus State and Local Fscal Recovery Funds
Dollar threshold used to distinguish between
type A and type B programs:

Auditee qualified as low risk auditee? x Yes No
Unmodified
Unmodified
750,000$

21.027
112

CITY OF SUISUN CITY, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
9 Section II - Financial Statement Findings

No findings noted.

Section III - Federal Award Findings and Questioned Costs

No findings noted.

113

CITY OF SUISUN CITY, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022
10 Section II - Financial Statement Findings

No findings noted.

Section III - Federal Award Findings and Questioned Costs

No findings noted.

114

Chavan & Associates, LLP
Certified Public Accountants
15105 Concord Circle, Suite 130
Morgan Hill, CA 95037

CITY OF SUISUN CITY

CALIFORNIA

MEASURE S

GENERAL TRANSACTIONS AND

USE TAX AUDIT
(ORDINANCE NO. 742)

For the Year Ended June 30, 2022
* * *
115

CITY OF SUISUN CITY

CALIFORNIA

MEASURE S GENERAL TRANSACTION AND USE TAX
ORDINANCE NO. 742

FOR THE FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS

PAGE NO.

INDEPENDENT AUDITOR’S REPORT .............................................................................................. 1 - 3

S
TATEMENT OF REVENUES AND EXPENDITURES ......................................................................... 4

NOTES TO THE FINANCIAL STATEMENTS ..................................................................................... 5

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS ..................................................................................... 6 - 7

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE

TO MEASURE S GENERAL TRANSACTIONS AND USE TAX IN ACCORDANCE WITH CITY ORDINANCE NO. 742 ............................................................................................................. 8 - 10

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INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor and Members of the
City Council of the City of Suisun City
City of Suisun City, California

Report on the Financial Statements

Opinions

We have audited the accompanying Measure S statement of revenues and expenditures of the City of Suisun City’s (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statement, which comprises the Measure S statement of revenues and expenditures for the City.

In our opinion, the Measure S financial statement referred to above presents fairly, in all material respects, the statement of revenues and expenditures of the City of Suisun City’s Measure S, as of June 30, 2022, in accordance with accounting principles genera lly accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the Uni ted States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Other Information

The accompanying statement was prepared to present the revenues and expenditures pursuant to Measure S and Ordinance No. 742 as described in the Notes and is not intended to be a complete presentation of the City’s revenues and expenditures. It does not purport to, and does not, fairly present the financial statements of the City as of June 30, 2022, and its changes in financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

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Responsibilities of Management for the Financial Statements

City management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.

Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City ’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
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We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated January 25, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governmen t Auditing Standards in considering the City’s internal control over financial reporting and compliance.

January 25, 2023
Morgan Hill, California
119

CITY OF SUISUN CITY

CALIFORNIA

MEASURE S GENERAL TRANSACTIONS AND USE TAX
ORDINANCE NO. 742

STATEMENT OF REVENUES AND EXPENDITURES
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

The notes to the financial statement are an integral part of this statement.

- 4 -
Variance with
Original Final Final Budget
Budget Budget Actual Positive/(Negative)

REVENUES
Sales & Use Tax 2,988,100$ 3,550,648$ 3,725,188$ 174,540$ Net Investment Income (Loss) 5,000 5,000 (11,169) (16,169) Total Revenues 2,993,100 3,555,648 3,714,019 158,371

EXPENDITURES
Ongoing Expenditures:

Police Department
Police General Operation 1,577,171 1,577,171 1,577,171 - Police Officer - 120,116 120,116 - Dispatcher - 80,000 80,000 - Community Services Officer - 80,000 80,000 - Total Ongoing Police Department Expenditures 1,577,171 1,857,287 1,857,287 - Fire Department
Fire General Operation 1,301,447 1,301,447 1,301,447 - Fire Marshall - 85,000 85,000 - Fire Division Chief - 436,000 436,000 - Total Ongoing Fire Department Expenditures 1,301,447 1,822,447 1,822,447 - City Manager's Office
Admin Assistant 80,000 80,000 80,000 - Bldg & Public Works
Maint Worker I/II-I 99,843 99,843 99,843 - Rec Supervisor
Rec Supervisor 76,400 76,400 76,400 - Total Ongoing Expenditures 3,134,861 3,935,977 3,935,977 - Capital Projects
Fire Tablet Command - 32,500 - 32,500 Fire Cradle-point - 32,401 - 32,401 Fire Type 5- Vehicle - 480,000 421,191 58,809 Fire Bathroom Remodel - 165,000 - 165,000 SR12 Clean CA Grant - 215,000 - 215,000 Public Safety Communication System 324,657 324,657 298,991 25,666 Street Repair Program - - 10,300 (10,300) Business Mgmt-Phase 1 50,000 50,000 44,603 5,397 TotaL Capital Projects 374,657 1,299,558 775,085 524,473 Total Expenditures 3,509,518 5,235,535 4,711,062 524,473 Excess (Deficiency) of Revenues over Expenditures (516,418) (1,679,887) (997,043) 682,844 Measure S Balance Beginning 516,418 1,679,887 1,679,887 - Measure S Balance Ending -$ -$ 682,844$ 682,844$ 120

CITY OF SUISUN CITY

CALIFORNIA

MEASURE S GENERAL TRANSACTIONS AND USE TAX
ORDINANCE NO. 742

NOTES TO THE FINANCIAL STATEMENT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

- 5 -

1. Description of Reporting Entity

The statement represent s the revenues and expenditures for the Measure S General Transactions and use tax under Ordinance No. 742 of City of Suisun City (the “City”) for the year ended June 30, 2022. The accompanying statement of revenues and expenditures presents only the activities from the expenditure of Measure S taxes is not intended to present the financial position and result of operation of the City in conformity with accounting principles generally accepted in the United States of America.

2. Description of Measure S

Measure S is a 1% local tax applied to gross recei pts of any retailer within the city and collected similarly to sales and use tax . It was passed by a majority of the voters in November of 2016 through City Ordinance No. 742.

3. Statement of Grant Revenues and Expenditures

The statement of revenues and ex penditures presents the eligible costs charged to Measure S by the City and the revenues received from general transactions and use tax from the sale of tangible personal property at retail within the City.

4. Basis of Accounting

Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the statement. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The City used the mo dified accrual basis of accounting . Revenues are recognized when collection of the amounts can be reasonably estimated to be received in the near future, typically 60 days after year end . Expenditures are generally recognized in the period in which goods a nd services are received or a liability is incurred.

5. Budgeting

Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse at fiscal year -end. The City s ubmits requests for appropriations to the City Manager so that a budget may be prepared. The proposed budget is presented to the City Council for review. The Council holds public hearings and adopts a final budget.

The appropriated budget is prepared by fund, function, and department. The City Manager may make transfers of appropriations within a department. Transfers of appropriations between funds require the approval of the City Council. The legal level of budgetary control is the fund level.

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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED

ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and Members of the
City Council of the City of Suisun City
City of Suisun City, California

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the Measure S s tatement of revenues and e xpenditures of the City of Suisun City (the “City”) as of and for the year ended June 30, 2022, and the related notes to the Measure S financial statement, which comprises City’s Measure S statement of revenues and expenditures , and have issued our report thereon dated January 25, 2023.

Internal Control over Financial Reporting

In planning and performing our audit of the Measure S financial statement , we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the Measure S financial statement , but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City ’s Measure S financial statement will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Measure S financial statement is free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the applicable statutes, rules and regulations of Measure S and City Ordinance No. 742, noncomplia nce with which could have a direct and material effect on the determination of Measure S financial statement amounts.

Unless otherwise noted our separate compliance opinion related to Measure S , providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City ’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

January 25, 2023
Morgan Hill, California
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE

WITH REQUIREMENTS APPLICABLE TO MEASURE S

GENERAL TRANSACTIONS AND USE TAX
IN ACCORDANCE WITH CITY ORDINANCE NO. 742

To the Honorable Mayor and Members of the
City Council of the City of Suisun City
City of Suisun City, California

Report in Compliance

We have audited the City of Suisun City’s (the City) compliance of the Measure S revenues and expenditures with the types of compliance requirements described in Measure S General Transactions and Use Tax and Ordinance No. 742, as of and for the fiscal year ended June 30, 2022.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on the Mea sure S revenues and expenditures for the fiscal year ended June 30, 2022.

Basis for Opinion

We are required to be independent of City of Suisun City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on Mea sure S compliance. Our audit does not provide a legal determination of City of Suisun City’s compliance with the compliance requirements referred to above.

Management’s Responsibility

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Auditor’s Responsibility

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of Suisun City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards , will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepres entations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City of Suisun City’s compliance with the requirements of Measure S.

In performing an audit in accordance with GAAS, Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding City of Suisun City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of City of Suisun City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumsta nces and to test, but not for the purpose of expressing an opinion on the effectiveness of City of Suisun City’s internal control over compliance. Accordingly, no such opinion is expressed.

Report on Internal Control over Compliance

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 125

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A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance tha t we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

This report is intended solely for the information and use of City Council and management and is not intended to be and should not be used by anyone other than these specified parties.

January 25, 2023
Morgan Hill, California

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AGENDA ITEM NO. 13

AGENDA TRANSMITTAL

MEETING DATE:

May 23, 2023

CITY AGENDA ITEM:

Council Adoption of Resolution No. 2023-__: Authorizing the City Manager to execute a twenty year lease agreement with the State of California State Lands Commission for the continued operation, general use, and maintenance of the Suisun City Marina.

FISCAL IMPACT:

The marina lease has an annual base rent of $10,475, subject to annual adjustments based on the Consumer Price Index (CPI). This represents a decrease from the previous lease, which had a financial impact of $13,830 annually. The previous lease had a complex fee structure that included 6% of gross income from berthing rent, 10% of gross income from all other sources, and a fee of $0.015 per gallon of fuel sold. As a result, the annual impact to the general fund will be reduced.

STRATEGIC PLAN:

Provide Good Governance.

BACKGROUND:

The City of Suisun City Redevelopment Agency entered into a 30 year lease agreement with the State of California State Lands Commission on May 5, 1992 for the demolition of the existing operating berths and construction of an open-berth commercial marina, with fuel dock, sewage pump out station, promenade, and maintenance dredging. On April 28, 1993, the lease was amended for the construction and maintenance of an accommodation dock and shoreline protection. The lease was amended again February 27, 1998, June 18, 2002, and December 14, 2006 to revisit rent payment amounts and due dates. Since the dissolution of the Redevelopment Agency the City of Suisun Successor Agency acquired the lease encumbrance.

STAFF REPORT:

On February 28, 2023 the State of California State Lands Commission approved the issuance and renewal of the general lease. This lease authorizes the continued use, maintenance, and operation of an existing commercial marina, known as the Suisun City Marina, consisting of a portion of 150 uncovered berths, an accommodation dock, promenade, bank protection, and maintenance dredging previously authorized; and use, maintenance, and operation of 10 uncovered berths and a walkway not previously authorized.

The general lease include the following terms and conditions:

Lease Term: 20 years; beginning February 28, 2023; ending February 27, 2043, unless sooner terminated as provided under this Lease.

Annual Base Rent: The lessee will be required to pay an annual base rent of $10,475, with an annual Consumer Price Index adjustment and the State reserving the right to fix a different rent periodically during the lease term.

Compensation for Unauthorized Use: Lessee shall pay $8,667 to Lessor within 60 days of the beginning date of the lease for the unauthorized occupation of state-owned land for the period from May 1, 2022 to February 27, 2023.

Staff recommends approval of the renewal of the general marina lease for commercial use. The lease 127
will ensure the continued operation, use, and dredging rights for the marina, which provides an important recreational resource to the local community.

STAFF RECOMMENDATION:

It is recommended that the City Council Adopt Resolution No. 2023- __: Authorizing the City Manager to execute a twenty-year lease agreement with the State of California State Lands Commission for the continued operation, general use, and maintenance of the Suisun City Marina.

DOCUMENTS ATTACHED:
1 .

Resolution No. 2023-___: Authorizing the City Manager to execute a twenty-year lease agreement with the State of California State Lands Commission for the continued operation, general use, and maintenance of the Suisun City Marina
2 .

Marina Lease Agreement
3 .

Marina Lease Renewal Map

PREPARED BY:

Janet Hull, Recreation Manager
REVIEWED BY:

Kris Lofthus, Deputy City Manager
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:
1 Resolution Authorizing City Manager to Execute a Lease Agreementt with the State of CA Lands Commission.docx
2 Marina Lease Agreement
3 Marina Lease Renewal Map.pdf
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RESOLUTION NO. 2023 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE A TWENTY YEAR LEASE

AGREEMENT WITH THE STATE OF CALIFORNIA STATE LANDS

COMMISSION FOR THE CONTINUED OPERATION, GENERAL USE, AND MAINTENANCE OF THE SUISUN CITY MARINA.

WHEREAS, the City of Suisun City Redevelopment Agency entered into a 30 year lease agreement with the State of California State Lands Commission on May 5, 1992 for the demolition of the existing operating berths and construction of an open-berth commercial marina, with fuel dock, sewage pump out station, promenade, and maintenance dredging; and WHEREAS, on February 28, 2023 the State of California State Lands Commission approved the issuance and renewal of the general lease authorizing the continued use, maintenance, and operation of an existing commercial marina, known as the Suisun City Marina; and
WHEREAS, the Lease Term: 20 years; beginning February 28, 2023; ending February 27, 2043, unless sooner terminated as provided under this Lease; and WHEREAS, the annual Base Rent: The lessee will be required to pay an annual base rent of $10,475, with an annual Consumer Price Index adjustment and the State reserving the right to fix a different rent periodically during the lease term.

NOW, THEREFORE, BE IT RESOLVEDthat the City Council of the City of Suisun City hereby Authorize the City Manager to execute a twenty year lease agreement with the State of California State Lands Commission for the continued operation, general use, and maintenance of the Suisun City Marina.

PASSED AND ADOPTEDat a regular meeting of the City Council of the City of Suisun City duly held on Tuesday, the 23rd day of May, 2023, by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ABSTAIN: Council Members:

WITNESS my hand and the seal of said City this 23rd of May, 2023.

Anita Skinner
City Clerk
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RECORDED AT THE REQUEST OF
AND WHEN RECORDED MAIL TO:

STATE OF CALIFORNIA
California State Lands Commission
Attn: Land Management Division
100 Howe Avenue, Suite 100-South
Sacramento, CA 95825-8202

STATE OF CALIFORNIA

OFFICIAL BUSINESS
Document entitled to free recordation
pursuant to Government Code Section
27383

SPACE ABOVE THIS LINE FOR RECORDER'S USE
County: Solano
LEASE 7625
This Lease consists of this summary and the following attached and incorporated parts:

Section 1 Basic Provisions
Section 2 Special Provisions Amending or Supplementing Section 1 or 3 Section 3 General Provisions
Exhibit A Land Description
Exhibit B Site and Location Map
Exhibit C Best Management Practices for Marina Owners/Operators Exhibit D Best Management Practices for Berth Holders and Boaters SECTION 1: BASIC PROVISIONS
THE STATE OF CALIFORNIA, hereinafter referred to as Lessor acting by and through the CALIFORNIA STATE LANDS COMMISSION (100 Howe Avenue, Suite 100-South, Sacramento, California 95825-8202), pursuant to Division 6 of the Public Resources Code and Title 2, Division 3 of the California Code of Regulations, and for consideration specified in this Lease, does hereby lease, demise, and let to CITY OF SUISUN CITY ACTING AS THE SUCCESSOR AGENCY TO REDEVELOPMENT, hereinafter referred to as Lessee, those certain lands described in Exhibit A hereinafter referred to as Lease Premises, subject to the reservations, terms, covenants, and conditions of this Lease.

Attachment 2
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MAILING ADDRESS:
701 Civic Center Blvd.

Suisun City, CA 94585

LEASE TYPE:

General Lease – Commercial Use

LAND TYPE:

Sovereign

LOCATION:

Suisun Slough, adjacent to 800 Kellogg Street, Suisun City, Solano County, as described in Exhibit A attached and by this reference made a part hereof.

LAND USE OR PURPOSE:

Operation, use, and maintenance of an existing commercial marina, known as the Suisun City Marina, with improvements authorized under this Lease and more particularly described herein under “Authorized Improvements.”

TERM:
20 years; beginning February 28, 2023; ending February 27, 2043, unless sooner terminated as provided under this Lease.

CONSIDERATION:

As specified in Section 2, Paragraph 1, and subject to modification by Lessor as provided for in Section 2, Paragraph 1(c) - Special Provisions; and Section 3, Paragraph 3(c) – General Provisions.

AUTHORIZED IMPROVEMENTS:

X EXISTING: A commercial marina, known as Suisun City Marina, consisting of a portion of 160 uncovered berths, an accommodation dock, promenade, walkway, bank protection, and maintenance dredging.

LIABILITY INSURANCE:

In an amount no less than $3,000,000 per occurrence.

SURETY BOND OR OTHER SECURITY:
$100,000

SECTION 2: SPECIAL PROVISIONS

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BEFORE THE EXECUTION OF THIS LEASE, ITS PROVISIONS ARE AMENDED, REVISED, OR SUPPLEMENTED AS FOLLOWS:

1. CONSIDERATION:

A. BASE RENT: Lessee shall pay Annual Rental in the amount of $10,475 in advance, on or before February 28thof each year. This rent shall be referred to as “Base Rent” and shall be used to establish the Adjusted Annual Rent for subsequent years through application of the provisions of subparagraphs 1(B) through 1(E) of Section 2, Special Provisions below.

B. Late payments of Annual Rent and Adjusted Annual Rent will be subject to penalty and interest pursuant to Section 3 – General Provisions, Paragraph 3(d) and subsequent payments will be first applied to interest and penalty, then past principal and finally to current principal. See Title 2, California Code of Regulations, section 1911(d).

C. Expansion of the uses, improvements, and activities authorized in Section 1, Basic Provisions of this Lease are subject to modification of the Base Rent and environmental review.

D. ADJUSTED ANNUAL RENT: Total Base Rent shall be adjusted annually on February 28, 2024, and on February 28th of every lease anniversary thereafter, using the following Rent Adjustment Formula:

1. Rent shall be adjusted annually by the Consumer Price Index as specified in Title 2, California Code of Regulations Section 1900(m) & (n).

2. If the Adjusted Annual Rent calculation (paragraph 1 (D) (1), of this Section 2) ever results in a lower rent than the prior year, the rent shall remain the same as the prior year.

E. BASE RENT – PERIODIC ADJUSTMENT: Notwithstanding the provisions of Section 3, Paragraph 3, Lessor may, at its option, elect to establish a new Base Rent on the 10th anniversary of this Lease. The new Base Rent may be established using any methods and other factors specified in the California Code of Regulations, Title 2, Section 2003, deemed suitable for the circumstances and in the State’s best interests.

1. If Lessor elects to prepare an appraisal to establish a new Base Rent, Lessee may, at its option, also provide a timely independent appraisal at its sole expense for Lessor’s review and consideration. Prior to Lessee’s contracting for such appraisal, Lessor and Lessee shall negotiate in good faith and agree upon the terms and conditions for such third-party appraisal, including but not limited to the highest and best use, appraisal 132

methodology, and minimum appraiser credentials. Such appraisal shall be prepared in accordance with generally accepted appraisal standards as they are adopted from time to time by the Appraisal Standards Board of the Appraisal Foundation, and Lessor’s Appraisal Guidelines.

2. The new Base Rent shall thereafter be used as a basis to calculate the adjusted rent for subsequent years, through application of the provisions specified herein until a new Base Rent is established.

3. Should Lessor elect not to exercise its right to establish a new Base Rent on the 10th anniversary of this Lease, it may do so at any one of the next nine anniversaries following without prejudice. No Base Rent modification shall become effective unless Lessee is given at least 30 days’ notice prior to the date of the Commission meeting wherein the New Base Rent is considered, or 30 days’ notice prior to the effective date of the new Base Rent, whichever provides a greater notice period.

4. If a new Base Rent is not established, rent shall continue to be adjusted annually as provided herein.

F. NO PRORATION OF RENT: In the event of the termination of this Lease prior to its expiration date from any cause whatsoever, any annual rental paid in advance shall not be prorated.

2. INVOICES: Lessor may prepare and send an invoice to Lessee for rent due and to notify Lessee of what CPI value was used in the calculation of the new Adjusted Annual Rent. Lessee acknowledges that such invoicing is for Lessee’s convenience and that Lessor’s failure to invoice shall not relieve Lessee of its obligation to timely pay rent as otherwise stated in this Lease. If Lessor has not yet sent an invoice, Lessee is permitted to pay prior year’s rent amount until invoiced differently by Lessor.

3. OPERATOR FOR ALL PURPOSES OF THIS LEASE: “Operator” shall refer both individually and collectively to Lessee, its operators, sublessees, contractors, and concessionaires conducting activities from, on, over, or adjacent to the Lease Premises.

4. BOOKS AND RECORDS:

Lessee or its Operator shall maintain books and records for the term of the Lease of all financial transactions relating to the Leased Premises in accordance with generally accepted accounting principles. These records shall be supported by source documents such as agreements with renters, copies of invoices, receipts, and other pertinent documents. Lessor may inspect all of Lessee’s or its Operator’s books, records, and documents relating to the operations on the Lease Premises, at all reasonable times and with reasonable notice. Records shall 133

include, but not be limited to, Lessee’s or its Operator’s Federal and State Income Tax Returns, and Board of Equalization Tax Returns in order to corroborate information shown on reports to Lessor. All reports submitted to the Lessor are subject to audit and revision by the Lessor. Any statutory or other rights that the Lessee or its Operator may have to object to such inspection by Lessor are hereby waived.

5. MARINA BERTH SUBLETTING:

Paragraph 5(h) and 11 of Section 3, General Provisions is hereby amended as follows:

A. Lessee or its operators may issue, without Lessor’s prior approval, individual berthing subleases in conjunction with normal commercial marina subleasing practices for terms of one year or less.

B. Upon request, Lessee shall provide Lessor with a summary report of berthing activities, including, but not limited to, the number of subleases in effect on the date of the report, the number of new subleases since the date of the last report, and the number of subleases terminated since the last report. This activity summary shall include monthly berth rates and assigned slip numbers.

C. Individual Berth Subleases shall not be transferable and shall convey no greater rights to a specific berth than the rights set forth in the sublease agreement and shall be subject to all Lease conditions, restrictions, and covenants, including, but not limited to, the prohibition of liveaboard use.

D. Individual berth holders under any sublease shall not engage in any commercial activity without the prior written approval of Lessor.

E. Except as authorized under subparagraphs 5(A), (B), (C), and (D) above, relating to subleasing for individual berthing, Lessee may sublet only with the prior written consent of Lessor and only for public trust purposes of water- related commerce, navigation, fisheries, recreation, and open space, except as otherwise approved by Lessor.

6. MARINA OPERATION AND MANAGEMENT:

A. Lessee and its Operators shall not assign or transfer the operation or management of the marina facilities on the Lease Premises without the Lessor’s prior approval as provided for in Section 3, Paragraph 11 of this Lease.

B. Expansion of the uses, improvements and activities as set forth in Section 1 of this Lease shall be subject to Lessor’s prior written consent and may be subject to environmental review prior to their commencement.

C. New Concession Subleases/Operating Agreements in Excess of One Year:
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Any sublease/operating agreement for any purpose and having a term in excess of one year shall be approved by Lessor pursuant to Section 3, Paragraph 11 of this Lease.

D. Lessee or its operators may designate no more than one navigable vessel to be occupied and used for the sole purpose of providing 24-hour marina security. The designated vessel shall be located in strategically designated slips, subject to the approval of Commission staff, and shall be required to leave the Lease Premises at least once, for a minimum of six hours, each 90- day period. Lessee shall submit to Lessor an annual report covering the security activities for the year, which shall include the name, slip number and vessel identification number of the designated security vessel; a summary of the incidents for the year pursuant to the duty statement; and a log with the scheduled security vessels departure and return to the marina each 90-day period. The report and log shall be made available to Lessor upon request.

E. Notwithstanding subsection D above, no liveaboards or residential use shall take place on the Lease Premises.

7. REFUSE CONTAINERS:

Lessee shall provide containers on or immediately adjacent to the Lease Premises to receive trash, refuse and recyclables generated aboard vessels using Lessee's docking or launching facilities. Refuse and recycle containers shall be located so as to be conveniently used by occupants of vessels using Lessee's facilities and shall be of sufficient size and number to contain the refuse generated aboard all vessels using Lessee's facilities. The containers shall be covered and emptied regularly enough to prevent them from overflowing or creating unhealthful, unsightly or unsanitary conditions. The contents of the containers shall be disposed of by Lessee or others acting pursuant to Lessee's direction at authorized landfills or other garbage and recycle reception areas as provided under law applicable at the time of collection.

8. PLASTICS:

A. Lessee shall not provide for sale, or allow other parties to provide, any prepared food in polystyrene foam containers or packaging, nor shall Lessee, or other parties, keep on the Lease Premises any polystyrene foam containers or packaging of a type, design, and condition appropriate to the preparation of food for consumption on or off the Lease Premises.

B. All packaging for prepared food that is consumed on or off the Lease Premises, or for takeout service, shall be degradable. Lessee shall provide, upon demand, copies of paid invoices that verify the purchase of degradable containers in quantities sufficient to validate Lessee's compliance with this provision.

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C. For purposes of this Lease, the following definitions are applicable.

1) "Prepared food" means foods or beverages which are prepared on the lease premises by cooking, chopping, slicing, mixing, freezing, or squeezing, and which require no further preparation to be consumed.

2) "Food packaging" means all bags, sacks, wrapping, containers, bowls, plates, trays, cartons, cups, straws, and lids which are not intended for reuse on or in which any foods or beverages are placed or packaged on the Lease Premises.

3) "Takeout food" means prepared foods or beverages requiring no preparation to be consumed and which are purchased in order to be consumed off the Lease Premises.

4) "Polystyrene foam" means any styrene or vinyl chloride polymer that is blown into a foam-like material, an example of which is commonly known as "Styrofoam".

5) "Degradable food packaging" means food packaging which within two years substantially reduces to its constituent substances through degradation processes initiated by natural organisms whose end products are substantially, but not necessarily entirely, carbon dioxide and water.

Degradable food packaging does not include cellulose-based items that have a synthetic or plastic coating comprising more than 5% of the total volume of the item.

D. The above conditions shall be in effect until such time as the State Lands Commission adopts regulations or policies on the subject of plastic pollution.

To the extent that such policies or regulations differ from the foregoing provisions and definitions, the parties hereby agree that the Lease will be amended to incorporate the policies adopted by the State Lands Commission.

9. PETROLEUM PRODUCTS HANDLING:

The draining or dumping of petroleum products on or adjacent to the Lease Premises is strictly prohibited. Lessee shall post notices and provide active enforcement against the draining or dumping of petroleum products, on or near the Lease Premises.

10. DREDGING:

Lessee is authorized to perform maintenance dredging on the Lease Premises for the term of the Lease, annually. No other dredging of any kind shall be conducted under the terms of this Lease. Authorization for other dredging will 136

require separate authorization from the Lessor upon Lessee’s submission of an application and required fees.

A. Prior to start of any maintenance dredging activities on the Lease Premises, Lessee shall, upon request, submit to Lessor copies of all permits and authorizations from agencies having jurisdiction over the dredging activities.

B. This lease does not authorize Lessee to dredge or use dredge materials for purposes of commercial resale, environmental mitigation credits or other private benefit. No royalty shall be paid for material placed at approved disposal sites and which is used for public benefit. The dredged material may not be sold. Dredge materials shall only be disposed of at a Regional Water Quality Control Board and/or U.S. Army Corps of Engineers approved disposal site.

C. Any equipment to be used on the Lease Premises is limited to that which is directly required to perform the authorized use and does not include any equipment that may cause damage to the Lease Premises.

D. Lessee shall safely conduct all dredging and disposal operations in accordance with accepted dredging and disposal methods and practices and with due regard for the protection of life and property, preservation of the environment of the conservation of natural resources.

E. Record Keeping and Audits:

i. Lessee shall submit to Lessor an annual summary of maintenance dredging activities no later than December 31st of each year when dredging has occurred including a written description regarding dates of dredging activity, location, volume and disposal location.

ii. At the request of Lessor, the Lessee shall provide additional reasonable additional information to Lessor to assist it in interpreting and evaluating the contents of Lessee’s annual summary.

11. BEST MANAGEMENT PRACTICES:

Lessee agrees to implement the Best Management Practices (BMPs) for Marina Owners/Operators contained in Exhibit C to this Lease, and by this reference made a part hereof. Lessor reserves the right to modify existing BMPs or require that additional BMPs be implemented as technology changes, if existing BMPs are not being followed, and/or existing BMPs are found to be ineffective.

12. Lessee shall include and incorporate the following provisions into all berth rental agreements entered into after the Effective Date of this Lease:

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A. A provision which requires that berth holders maintain their boats in a safe operating condition, including suitable restrictions on maintenance activities performed at the marina by berth holders, such as express prohibitions against any bottom paint application or removal and engine and hull washing;

B. A provision which requires that boat engines shall be in compliance with all applicable pollution control measures and the berth holders shall exercise their best efforts to reduce air and water pollution;

C. A provision which incorporates the BMPs for Berth Holders and Boaters as contained in Exhibit D to this Lease, and an acknowledgment by berth holders that the BMPs may be amended from time to time by Lessor. In addition, Lessee shall encourage its tenants to follow the BMPs for Berth Holders and Boaters by posting it in a prominent place within the Lease Premises.

Lessee shall, on the first anniversary of the Lease and on every third anniversary of the Lease thereafter, provide to Lessor a report on compliance with the BMPs required under this Lease.

13. CLIMATE CHANGE
Lessee acknowledges that the Lease Premises and adjacent upland are located in an area that may be subject to effects of climate change, including sea level rise. In addition, the Authorized Improvements in Section 1 herein may require more frequent maintenance to avoid degradation or dislodgement and to ensure continued function during unusual storm and wave events, and after storm seasons. To prepare for the potential effects of sea level rise, including damage from flooding, erosion, tsunamis, waves, and storm-created debris, the Lessee shall comply with the following:

A. Lessee shall conduct a structural assessment of the Authorized Improvements within 180 days of the tenth lease anniversary date. The structural assessment shall be performed by a civil or structural engineer licensed by the State of California. Such assessments shall make note of any impacts to the lease facilities as a result of sea level rise to date and shall comment upon any reasonably foreseeable impacts to the lease facilities due to sea level rise over the remaining term of the lease. Such assessments shall be submitted to Commission staff for review and comment within 30 days of completion.

B. Lessee shall conduct visual inspections of the Authorized Improvements following all major storm events or unusual wave events such as caused by hurricanes, tsunamis, or King Tides. Upon request of Lessor, a written narrative report detailing such inspections shall be prepared and submitted. The report shall include, but not be limited to: (1) the dates of any major storm events and inspections; (2) who conducted the inspections and their credentials; (3) detailed descriptions of any damage identified including pictures; (4) any 138

repairs/maintenance performed or planned as a result of identified damage; and (5) any repairs identified in previous reports but not completed prior to report submission.

C. Consistent with Section 3, Paragraph 8, the Lessee assumes the risks associated with the potential hazards related to sea level rise and agrees to be solely responsible for all damages, costs, and liabilities arising as a result of the impacts of such hazards on the Lease Premises. If the structural assessment discovers impacts to the structural integrity of the authorized improvements to date or reasonably foreseeable impacts to structural integrity of the authorized improvements due to sea level over the remainder of the lease, the lessee shall prepare a remedial action plan to address structural concerns to minimize risk to public health and safety and submit such plan to the Commission for review and comment. Any additional maintenance or protection strategies necessitated by the remedial action plan may require additional approval by Lessor pursuant to Section 3, Paragraph 5(a) and be subject to environmental review.

14. APPLICATION FOR NEW LEASE:

Lessee agrees to submit no later than two years prior to the expiration of this Lease either: (a) an application and minimum expense deposit for a new Lease for the continued use of the Lease Premises, or (b) a plan for the restoration of the Lease Premises to be completed prior to the expiration of the lease terms, pursuant to Paragraph 12 of Section 3, General Provisions, of this Lease. Failure to submit the application and minimum expense deposit or the restoration plan shall be deemed a default of the Lease under Paragraph 12(b) of Section 3, General Provisions, of this Lease.

15. Lessee shall pay $8,667 to Lessor within 60 days of the beginning date of the Lease for the unauthorized occupation of state-owned land for the period from May 1, 2022 to February 27, 2023, by the improvements identified in Section 1. The written notification provisions of Section 3, Paragraph 12 (Default and Remedies) notwithstanding, should Lessee fail to provide compensation within the period specified herein, Lessee may be found to be in default of the Lease.

16. Lessee agrees the provisions of Section 3, Paragraph 8 shall also extend to the period of Lessee’s unauthorized occupation of state-owned lands, from May 1, 2022 to February 27, 2023.

17. Lessee shall deliver on or before February 28, 2025, a good-faith estimate prepared by a reputable contractor for the costs of full removal of the improvements, to the sole satisfaction of the Executive Officer or designee. Lessor and Lessee agree that the Surety Bond required in Section 1 may be modified to reflect the estimated removal costs.

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SECTION 3

GENERAL PROVISIONS

1. GENERAL
In the case of any conflict between these General Provisions and Special Provisions found in Section 2, the Special Provisions control.

2. DEFINITIONS
For the purposes of this Lease, the following terms shall be defined as stated below:
“Additions” shall be defined as any use or Improvements other than those expressly authorized in this Lease.
“Alterations” shall be defined as any material change in the size, scope, density, type, nature, or intensity of Improvements on the Lease Premises from what is authorized in this Lease.

Alterations shall also include any modifications, alterations, or renovations of the land or waterways on the Lease Premises other than those authorized by this Lease. “Breach” shall be defined as a party's unjustified or unexcused nonperformance of a contractual duty the party is required to immediately perform. “Damages” shall include all liabilities, demands, claims, actions or causes of action whether regulatory, legislative or judicial in nature; all assessments, levies, losses, fines, penalties, damages, costs and expenses, including, without limitation: (i) reasonable attorneys’, accountants’, investigators’, and experts’ fees and expenses sustained or incurred in connection with the defense or investigation of any such liability, and (ii) costs and expenses incurred to bring the Lease Premises into compliance with Environmental Laws, a court order, or applicable provisions of a Regulatory Agency. The term “Damages” also includes, expressly, those Damages that arise as a result of strict liability, whether arising under Environmental Laws or otherwise.
“Default” shall be defined as a material Breach of magnitude sufficient to justify termination of the Lease.
“Environmental Law” shall be defined as and include all federal, state, and local environmental, health, and safety laws, statutes, ordinances, regulations, rules, judgments, orders, and notice requirements, which were in effect as of the date of execution of this Lease or are subsequently enacted and lawfully applied hereto, which regulate or relate to (a) the protection or clean-up of the environment; (b) the use, treatment, storage, transportation, handling or disposal of hazardous, toxic or otherwise dangerous substances, wastes or materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions; (d) the preservation or protection of waterways, groundwater, or drinking water; (e) the health and safety of persons or property; or (f) impose liability with respect to any of the foregoing, including without limitation, the California Environmental 140
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Quality Act (CEQA) [PRC §§ 21000 et seq.]; the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) [42 USCS §§ 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 (RCRA) [42 USCS §§ 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act (FWPCA) [33 USCS §§ 1251 et seq.]; the Toxic Substances Control Act (TSCA) [15 USCS §§ 2601 et seq.]; the Hazardous Materials Transportation Act (HMTA) [49 USCS §§ 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 USCS §§ 136 et seq.]; the Superfund Amendments and Reauthorization Act [42 USCS §§ 6901 et seq.]; the Clean Air Act [42 USCS §§ 7401 et seq.]; the Safe Drinking Water Act [42 USCS §§ 300f et seq.]; the Solid Waste Disposal Act [42 USCS §§ 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 USCS §§ 1201 et seq.]; the Emergency Planning and Community Right to Know Act [42 USCS §§ 11001 et seq.]; the Occupational Safety and Health Act [29 USCS §§ 655 and 657]; the California Underground Storage of Hazardous Substances Act [H & S C §§ 25280 et seq.]; the California Hazardous Substances Account Act [H & S C §§ 25300 et seq.]; the California Hazardous Waste Control Act [H & S C §§ 25100 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [H & S C §§ 24249.5 et seq.]; the Porter-Cologne Water Quality Act [Water C §§ 13000 et seq.] together with any amendments of or regulations promulgated under the statutes cited above. “Hazardous Material” shall be defined as and include any substance which falls within the definition of hazardous substance, hazardous waste, hazardous material, toxic substance, solid waste, pollutant, or contaminant, under any Environmental Law. “Improvements” shall be defined as any modification, alteration, addition, or removal of any material, and any other action which serves to change the condition of the Lease Premises from the natural state whether situated above, on, or under the Lease Premises.

Improvements include, but are not limited to buildings, structures, facilities, decks, docks, wharves, piers, walks, curbs, bridges, buoys, landscaping, roadways, shoreline protective structures of all types, foundations, pilings or similar support structures whether above or below the water line, fences, utilities, pipelines, and any other construction of any type situated on the Lease Premises.
“Lease” shall be defined as this lease contract together with all amendments and exhibits. “Lease Premises” shall be defined as the area of land, together with any improvements located thereon, the use and occupancy of which is authorized by this Lease. “Lessor” shall be defined as the state of California, acting by and through the California State Lands Commission, including the Commissioners, their alternates and designates, the Executive Officer, and the staff of the California State Lands Commission. “Regulatory Agency” shall include any Federal, State, County, Municipal, or Local agency having jurisdiction over the Lease Premises.
“Repairs” shall be defined as all work of any kind made to maintain, change, restore, strengthen, replace, alter, or otherwise affect any Improvement on the Lease Premises. 141
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“Residence” shall be defined as any Improvement, whether permanent, movable, or temporary, or a portion thereof, which is for the time being a home or place of lodging. A Residence includes any Improvement affixed to the land such as trailers or cabins, built on a raised foundation such as stilts or pilings, and floating residences such as boats, barges, arks, and houseboats, and any combination of such Improvements which provide residential accommodations to the Lessee or others. “Residence” shall not include transitory, intermittent, recreational use of facilities such as campgrounds. “Residential Use” shall be defined as Improvements such as, but not limited to, sundecks, and sunrooms which are extensions of, or additions to, the upland property and are not water- dependent uses. Although the various uses or Improvements which may fall under this definition may vary by geographic area, lease type, or other factors, it is the intention of the parties to include in this definition all uses and Improvements which are not water-dependent but residential in nature, or those uses and Improvements which are not consistent with common law public trust principles and values.

3. CONSIDERATION
(a) Absolute Triple Net Lease
This Lease is an absolute triple net lease, pursuant to which Lessor has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities and repairs or other costs or obligations associated with the Leased Premises, except as expressly stated herein.
(b) Rent
Lessee agrees to pay Lessor rent as stated in this Lease, in annual installments, for the use and occupancy of the Lease Premises. The first installment shall be due on or before the beginning date of this Lease and all subsequent installments shall be due on or before each anniversary of its beginning date during each year of the Lease term, or as otherwise provided in this Lease. Said sums shall be paid in lawful money of the United States of America. Lessee shall send said rent to the mailing address of Lessor. Timeliness of receipt of remittances sent by mail shall be governed by the postmark date as stated in Government Code Section 11002. Invoices for rent due may be provided by Lessor as a courtesy. Lessor’s failure to, or delinquency in, providing invoices shall neither excuse Lessee from paying rent, nor extend the time for paying rent. (c) Modification
Lessor may modify the method, amount, or rate of consideration effective on each fifth anniversary of the beginning date of this Lease. Should Lessor fail to exercise such right effective on any fifth anniversary it may do so effective on any one (1) of the next four (4) anniversaries following such fifth anniversary, without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary of the beginning date. No 142
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such modification shall become effective unless Lessee is given at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days’ notice prior to the effective date of the increase, whichever provides a greater notice period.

If the consideration for this Lease is based on a percentage of income, royalties, profits, or any similar business performance indicators, Lessee shall provide Lessor with financial statements and all other documents necessary to determine the relevant basis for income. (d) Penalty and Interest
Any installments of rent accruing under this Lease not paid when due shall be subject to a delinquency charge equal to five percent (5%) of the principal sum due. Annual payments shall bear interest as specified in Public Resources Code Section 6224 and the Lessor's then existing administrative regulations governing penalty and interest. (e) Non-Monetary Consideration
If the consideration to Lessor for this Lease is the public use, benefit, health, or safety, Lessor shall have the right to review such consideration at any time and set a monetary rental if the Lessor, at its sole discretion, determines that such action is in the best interest of the State. Lessee’s assignment or transfer of this Lease pursuant to Section 3 Paragraph 11 below to any third party which results in royalties, profits, or any form of compensation, whether monetary or otherwise, shall give Lessor the right to reevaluate the requirements of this Lease as stated in Section 3 Paragraph 11. Lessee shall be given at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the rent modification is considered, or thirty (30) days’ notice prior to the effective date that this Lease is converted to a monetary rental, whichever provides more notice.
(f) Place for Payment of Rent
All rent that becomes due and payable under this Lease shall be paid to Lessor in person or by United States mail at the Sacramento Offices of the California State Lands Commission, currently at 100 Howe Avenue, Suite 100-South, Sacramento, CA 95825-8202, or at any other place or places that Lessor may designate by written notice to Lessee.

Alternately, Lessee may contact Lessor’s accounting department for Lessor’s current practices for payment by credit card or electronic fund transfer.

4. BOUNDARIES
This Lease is not intended to establish the State's boundaries and is made without prejudice to either party regarding any boundary or title claims which may be asserted presently or in the future.

5. LAND USE
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(a) General
(1) Lessee shall use the Lease Premises only for the purpose or purposes stated in this Lease and only for the operation and maintenance of the Improvements expressly authorized in this Lease. Lessee shall commence use of the Lease Premises within ninety (90) days of the beginning date of this Lease or within ninety (90) days of the date set for construction to commence as set forth in this Lease, whichever is later. (2) All demolition, construction, remodeling, reconstruction, maintenance, repairs, removal, or remediation performed on the Lease Premises at any time by Lessee shall first be authorized by all appropriate Regulatory Agencies. Lessee is solely responsible for determining what approvals, authorizations, or certifications are required, and shall be solely responsible for all costs incurred thereby. In addition, Lessee shall obtain and comply with preventative or remedial measures required by any environmental reports, assessments, or inspections, including, but not limited to those required by the California Environmental Quality Act and/or the National Environmental Policy Act, or as otherwise required by law or reasonably requested by Lessor. Nothing in this Lease shall be interpreted as a pre-approval of any permit, certification, or any other precondition required for the use of the Lease Premises.
(b) Continuous Use
Lessee's use of the Lease Premises shall be continuous from commencement of the Lease until its expiration. Lessee's discontinuance of such use for a period of ninety (90) days shall be presumed to be an abandonment unless Lessee demonstrates to Lessor’s satisfaction that Lessee’s use of the Lease Premises is consistent with similarly situated properties. In the event of an abandonment, Lessor may elect to terminate the Lease as provided in Paragraph 12(a)(3). Abandonment of the Lease Premises shall not relieve Lessee of any obligations under this Lease.
(c) Repairs and Maintenance
(1) Lessor shall not be required to make any Repairs in, on, or about all or part of the Lease Premises. Lessee shall, at all times during the term of this Lease and without any cost or expense to Lessor, keep and maintain the Lease Premises, including all Improvements, in good order and repair and in a clean, safe, sanitary, and orderly condition.
(2) Lessee shall make, or cause to be made, any Repairs which may be required by any Regulatory Agency. Lessee shall observe and comply with, any law, statute, ordinance, plan, regulation, resolution, or policy applicable to the Lease Premises in making such Repairs. All work shall be performed with reasonable diligence, completed within a reasonable time, and performed at the sole cost and expense of Lessee.
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(3) Lessee expressly accepts the Lease Premises “as is” and expressly acknowledges that:
(i) Lessor has made no representations or warranties as to the suitability of the Lease Premises for any Improvements. Lessee shall conduct all tests necessary to determine the suitability of the Lease Premises for any proposed use or Improvements authorized; and
(ii) Lessor has made no representations or warranties as to the quality or value of any Improvements found on the Lease Premises, or of their conformity to any applicable building codes, zoning ordinances, or other regulations. Lessee agrees to inspect any preexisting Improvements at its own cost to determine whether such Improvements are safe and suitable for the Lessee’s intended use; and (iii) Lessee shall neither be entitled to any reduction in rent, nor any extension of the terms of this Lease because of damage to or destruction of any Improvements on the Lease Premises.
(iv) Lessee and Lessor agree that any Improvements on the Lease Premises constitute the personal property of Lessee and that fixture law does not apply. (4) In the event that the Lease Premises is partly, or in whole, comprised of tidal, submerged, or waterfront property, Lessee expressly accepts the hazards involved in using or improving such lands. Lessor is not responsible for, and Lessee shall not be reimbursed for nor receive any offset of rent for, any damages or reduced use of the Lease Premises caused by: local or invasive flora or fauna, flooding, erosion, sea level rise, storms, freezing, inclement weather of any kind, acts of god, maintenance or failure of protective structures, and any other such hazards. (d) Additions, Alterations, and Removal
No Improvements other than those expressly authorized in this Lease shall be constructed by the Lessee on the Lease Premises without the prior written consent of Lessor. Any Additions or Alterations are expressly prohibited. Lessee is also prohibited from any Additions or Alterations which cause a material change to the environmental impact on or around the Lease Premises.
(e) Enjoyment
This Lease is non-exclusive, and is subject to the provisions of Section 3, Paragraph 6 below. Lessee shall have the right to exclude persons from the Lease Premises only when their presence or activity constitutes a material interference with Lessee's use and enjoyment of the Lease Premises.
(f) Discrimination
Lessee, in its use of the Lease Premises, shall not discriminate against any person or 145
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class of persons on any basis protected by federal, state, or local law, including: race, color, creed, religion, national origin, sex, sexual orientation, gender identity, age, marital/parental status, veteran status, or disability. (g) Residential Use
Unless otherwise provided for in this Lease, no portion of the Lease Premises shall be used as a location for a Residence, for the purpose of mooring or maintaining a structure which is used as a Residence, or for Residential Uses. (h) Commercial Use
Unless otherwise provided for in this Lease, the Lease Premises is to be used by Lessee and Lessee’s invitees or guests only. Use of the Lease Premises for commercial purposes; conducting a business, whether for profit or otherwise; and any subleasing, rental, or any transaction whereby Lessee directly or indirectly receives compensation from a third party in exchange for use of the Lease Premises shall constitute an immediate Default of this lease with no cure period.

6. RESERVATIONS, ENCUMBRANCES, AND RIGHTS-OF-WAY
(a) Reservations
(1) Lessor expressly reserves all natural resources in or on the Lease Premises, including but not limited to timber, minerals, and geothermal resources as defined under Public Resources Code sections 6401, 6407, and 6903, respectively; the right to grant and transfer the same; as well as the right to grant leases in and over the Lease Premises which may be necessary or convenient for the extraction of such natural resources.

Such leasing shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease.
(2) Lessor expressly reserves a right to go on the Lease Premises and all Improvements for any purposes associated with this Lease or for carrying out any function required by law, or the rules, regulations, or management policies of the State Lands Commission.

Lessor shall have a right of reasonable access to the Lease Premises across Lessee owned or occupied lands adjacent to the Lease Premises for any purpose associated with this Lease.
(3) Lessor expressly reserves to the public an easement for convenient access across the Lease Premises to other State-owned lands located near or adjacent to the Lease Premises and a right of reasonable passage across and along any right-of-way granted by this Lease; however, such easement or right-of-way shall be neither inconsistent nor incompatible with the rights or privileges of Lessee under this Lease. (4) Lessor expressly reserves the right to lease, convey, or encumber the Lease 146
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Premises, in whole or in part, during the Lease term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease. (b) Encumbrances
The Lease Premises may be subject to pre-existing contracts, leases, licenses, easements, encumbrances, and claims and is made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose.

7. RULES, REGULATIONS, AND TAXES
(a) Lessee shall comply with and be bound by all presently existing or subsequently enacted rules, regulations, statutes or ordinances of the State Lands Commission or any Regulatory Agency. Occupancy or use of the Lease Premises provides no exemption from applicable regulations including, but not limited to, federal, state, county and local regulations, regulations promoting public health, safety, or welfare, building codes, zoning ordinances, and sanitation regulations. Lessee expressly acknowledges that Regulatory Agencies have jurisdiction over the Lease Premises unless such laws are in direct conflict with state law or public trust principles.
(b) Lessee understands and agrees that a necessary condition for the granting and continued existence of this Lease is that Lessee obtains and maintains all permits or other entitlements. Lessee expressly acknowledges that issuance of this Lease does not substitute for, or provide preference in obtaining authorizations from other Regulatory Agencies.
(c) Taxes
(1) In addition to the rent due under this Lease, Lessee accepts responsibility for and shall pay any and all real and personal property taxes, including possessory interest taxes, assessments, special assessments, user fees, service charges, and other charges of any description levied, imposed on, assessed, or associated with the leasehold interest, Improvements on the Lease Premises, any business or activity occurring on the Lease Premises, the Lease Premises itself, or any portion thereof, levied by any governmental agency or entity. Such payment shall not reduce rent due Lessor under this Lease and Lessor shall have no liability for such payment. (2) In the event that this Lease commences, terminates or expires during a tax year, Lessee shall pay the taxes for the period of such year during which this Lease was in effect.
(3) Any and all taxes and assessments and installments of taxes and assessments required to be paid by Lessee under this Lease shall be paid when due and the official 147
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and original receipt for the payment of such tax, assessment, or installment shall be delivered to Lessor upon request.
(4) Lessee shall indemnify and hold Lessor, the Lease Premises, and any Improvements now or hereafter located thereon, free and harmless from any liability, loss, or Damages resulting from any taxes, assessments, or other charges required by this Lease to be paid by Lessee and from all interest, penalties, and other sums imposed thereon and from any sales or other proceedings to enforce collection of any such taxes, assessments, or other charges.

8. INDEMNITY
(a) Lessee’s use of the Lease Premises and any Improvements thereon is at Lessee’s sole and exclusive risk.
(b) In addition to any other obligation to indemnify Lessor as otherwise provided in this Lease, except to the extent caused by the sole negligence and/or willful misconduct of the Lessor, Lessee shall indemnify, hold harmless, and, at the option of Lessor, defend Lessor, its officers, agents, and employees from any and all Damages resulting from Lessee’s occupation and use of the Lease Premises. Lessee shall reimburse Lessor in full for all reasonable costs and attorneys’ fees, specifically including, without limitation, any Damages arising by reason of: (1) The issuance, enjoyment, interpretation, Breach, or Default of this Lease; (2) The challenge to or defense of any environmental review upon which the issuance of this Lease is based; (3) The death or injury of any person, or damage to or destruction of any property from any cause whatever in any way connected with the Lease Premises, or with any of the Improvements or personal property on the Lease Premises; (4) The condition of the Lease Premises, or Improvements on the Lease Premises; (5) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises; (6) Any work performed on the Lease Premises or material furnished to the Lease Premises; (7) Lessee’s failure to comply with any material legal or other requirement validly imposed on Lessee or the Lease Premises by a Regulatory Agency. (c) The reimbursement provisions of this Paragraph 8 shall not apply to any claims, litigation, or other actions which may be brought by either Lessee or Lessor against each other. (d) Nothing in this paragraph shall be construed as requiring that Lessor defend itself against all or any aspect of any challenge to this Lease or any associated environmental review. However, Lessee may take whatever legal action is available to it to defend this Lease or any associated environmental review against any challenge by a third party, whether or not Lessor chooses to raise a defense against such a challenge. (e) Lessee shall notify Lessor immediately in case of any accident, injury, or casualty on the Lease Premises.
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9. INSURANCE
(a) Lessee shall obtain and maintain in full force and effect during the term of this Lease comprehensive general liability insurance and property damage insurance, with such coverage and limits as may be reasonably requested by Lessor from time to time, but in no event for less than the sum(s) specified against any and all claims or liability arising out of the ownership, use, occupancy, condition, or maintenance of the Lease Premises and all Improvements.
(b) The insurance policy shall identify the Lease by its assigned number. The specific Improvements shall also be generally identified, as well as their location on state owned property. The coverage provided shall be primary and non-contributing. Lessee shall keep such policy current. Lessor shall be named as a “certificate holder” and/or an “additional interest” on the policy. Lessee shall provide Lessor with a current certificate of insurance at all times. At Lessor’s request, Lessee shall provide a full copy of the current insurance policy, along with any and all endorsements or other such documents affecting the coverage. Lessor will not be responsible for any premiums or other assessments on the policy.
(c) The insurance coverage specified in this Lease shall be in effect at all times during the Lease term and subsequently until Lessor has either accepted all of the Lease Premises as improved or restored by Lessee as provided elsewhere in this Lease. Lessee shall notify Lessor within five (5) business days if the insurance is canceled for any reason.

10. SURETY BOND
(a) When required by Section 1 of this Lease, Lessee shall provide a surety bond or other security device acceptable to Lessor, for the specified amount, and naming the State of California, California State Lands Commission as the assured, to guarantee to Lessor the faithful observance and performance by Lessee of all of the terms, covenants, and conditions of this Lease.
(b) Lessor may require an increase in the amount of the surety bond or other security device to cover any additionally authorized Improvements, any modification of consideration, or to provide for inflation or other increased need for security. The surety bond or other security device may be increased on each fifth anniversary of the beginning date of this Lease.

Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so effective on any one (1) of the next four (4) anniversaries following such fifth anniversary without prejudice to its right to effect such modification on the next or any succeeding fifth anniversary. No such modification shall become effective unless Lessee is given at least thirty (30) days’ notice prior to the date of the Commission meeting wherein the modification of the bond or security is considered, or thirty (30) days’ notice prior to the 149
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effective date of the increase, whichever provides more notice. (c) The surety bond or other security device shall be maintained in full force and effect at all times during the Lease term and subsequently until Lessor has either accepted all of the Lease Premises as improved or restored by Lessee as provided elsewhere in this Lease.

Lessee must first seek approval of Lessor before changing the type of security device used, or the bond holder.

11. ASSIGNMENT, ENCUMBRANCING OR SUBLETTING
(a) Lessee shall not either voluntarily or by operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber this Lease and shall not sublet the Lease Premises, in whole or in part, or allow any person other than the Lessee's employees, agents, servants and invitees to occupy or use all or any portion of the Lease Premises without the prior written consent of Lessor, which consent shall not be unreasonably withheld. (1) Notwithstanding the foregoing prohibition against transfer and assignment, the Lease may be transferred by Lessee if the transfer is caused by the death of a spouse and the full interest of the deceased spouse is transferred to a surviving spouse; or the transfer is caused by the dissolution of the marriage of Lessee and the full interest of one of the spouses is transferred to the other spouse. In the event of such a transfer, Lessor shall be notified in writing within 30 days of the transfer.
(2) Notice to Lessor of Successor Trustee(s): In the event this Lease is held in trust, and the Lessee is a trustee thereof, the substitution or succession of a new trustee shall not be an assignment or transfer for the purposes of this Paragraph. Lessee (and by operation of law, any successor trustee) agrees to provide prompt notice to Lessor of any succession or substitution of trustee in accordance with Paragraph 16(c) of General Provisions, no later than sixty (60) days after the named trustee as appears on the face of this Lease becomes unable or ceases to serve as trustee for any reason. (b) The following shall be deemed to be an assignment or transfer within the meaning of this Lease:
(1) If Lessee is a business entity, any dissolution, merger, consolidation or other reorganization of Lessee, or the sale or other transfer of substantially all the assets of Lessee. If Lessee is a publicly traded entity, transfers of interests in Lessee shall not constitute an assignment requiring the consent of Lessor. (2) If Lessee is a partnership, a transfer of any interest of a general partner, a withdrawal of any general partner from the partnership, or the dissolution of the partnership. (c) If this Lease is for sovereign lands appurtenant to adjoining littoral or riparian land, Lessee shall not transfer or assign its ownership interest or use rights in such adjoining lands 150
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separately from the leasehold rights granted herein without the prior written consent of Lessor.
(d) If Lessee desires to assign, sublet, encumber or otherwise transfer all or any portion of the Lease Premises, Lessee shall do all of the following:
(1) Give not less than 90 days’ prior written notice to Lessor; (2) Provide the name, complete business organization, operational structure, and formation documents of the proposed assignee, sublessee, secured third party, or other transferee; and the nature of the use of and interest in the Lease Premises proposed by the assignee, sublessee, secured third party or other transferee. (3) Provide the terms and conditions of the proposed assignment, sublease, or encumbrance or other transfer;
(4) Provide audited financial statements for the two most recently completed fiscal years of the proposed assignee, sublessee, secured party or other transferee; and provide pro forma financial statements showing the projected income, expense and financial condition resulting from use of the Lease Premises; and (5) Provide such additional or supplemental information as Lessor may reasonably request concerning the proposed assignee, sublessee, secured party or other transferee.
(6) Lessor will evaluate proposed assignees, sublessees, secured third parties and other transferees and grant approval or disapproval according to standards of commercial reasonableness considering the following factors within the context of the proposed use: the proposed party's financial strength and reliability, their business experience and expertise, their personal and business reputation, their managerial and operational skills, their proposed use and projected rental, as well as other relevant factors. (e) Lessor shall have a reasonable period of time from the receipt of all documents and other information required under this provision to grant or deny its approval of the proposed party. Lessor may reevaluate the rent, insurance and/or bond provisions of this Lease, and may condition its approval of the proposed assignment, sublease, hypothecation, mortgage, or other transfer on the party’s acceptance of the new terms.

Lessee’s rights stated in this paragraph shall apply regardless of whether the proposed transfer coincides with a regular rent review period as stated in Section 3 Paragraph 3(c) above.
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subject to terms and conditions imposed by a separately negotiated encumbrancing agreement.
(g) Upon the express written assumption of all obligations and duties under this Lease by an assignee approved by Lessor, the Lessee may be released from all liability under this Lease arising after the effective date of assignment and not associated with Lessee's use, possession or occupation of or activities on the Lease Premises; except as to any hazardous wastes, substances or materials as defined under federal, state or local law, regulation, or ordinance manufactured, generated, used, placed, disposed, stored or transported on the Lease Premises during Lessee’s tenancy. (h) If the Lessee files a petition or an order for relief is entered against Lessee, under Chapters 7, 9, 11 or 13 of the Bankruptcy Code (11 USC Sect. 101, et seq.) then the trustee or debtor-in-possession must elect to assume or reject this Lease within sixty (60) days after filing of the petition or appointment of the trustee, or the Lease shall be deemed to have been rejected, and Lessor shall be entitled to immediate possession of the Lease Premises.

No assumption or assignment of this Lease shall be effective unless it is in writing and unless the trustee or debtor-in-possession has cured all Defaults under this Lease (monetary and non-monetary) or has provided Lessor with adequate assurances (1) that within ten (10) days from the date of such assumption or assignment, all monetary Defaults under this Lease will be cured; and (2) that within thirty (30) days from the date of such assumption, all non-monetary Defaults under this Lease will be cured; and (3) that all provisions of this Lease will be satisfactorily performed in the future.
(i) In the event of any transfer or assignment, under this Paragraph 11 or by any other means authorized by this Lease, the Lease terms shall be for the remaining years existing on the Lease prior to the transfer or assignment. A transfer or assignment shall not extend the term of this Lease.

12. DEFAULT AND REMEDIES
(a) Default
The occurrence of any one or more of the following events shall immediately and without further notice constitute a Default of this Lease:
(1) Lessee's failure to make any payment of rent, royalty, or other consideration as required under this Lease; or
(2) Lessee's failure to obtain or maintain liability insurance or a surety bond or other security device as required under this Lease; or
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(3) Lessee's abandonment of the Lease Premises (including the covenant for continuous use as provided for in Paragraph 5(b)) during the Lease term; or (4) Lessee's failure to obtain and maintain all necessary governmental permits or other entitlements; or
(5) The maintenance of the Lease Premises in violation of, or failure to comply with, any applicable provisions of any Regulatory Agency, Environmental Law, or maintenance of the Lease Premises in a condition constituting nuisance; or (6) Lessee’s Failure to commence to construct and to complete construction of the Improvements authorized by this Lease within the time limits specified in this Lease. (7) Lessee is found to sublet or otherwise surrender daily management and control of the Lease Premises to a third party without the knowledge, expressed written consent or authorization of the Lessor.
(b) Lessee's failure to observe or perform any other term, covenant, or condition of this Lease when such failure shall continue for a period of thirty (30) days after Lessor's giving written notice shall constitute a Default of this lease. However, if the nature of Lessee's Default under this paragraph is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in Default if Lessee commences such cure within such thirty (30) day period and diligently proceeds with such cure to completion.
(c) Should Lessee Breach any term, covenant, or condition of this Lease under Paragraph 12(b) above three (3) times in any three hundred and sixty-five (365) day period, the third Breach will be a Default under this Lease and Lessor will be entitled to immediately terminate this Lease, and take other appropriate action. Lessor will provide written notice of each Breach as provided above, and provide written notice that future Breaches will constitute immediate Default with no cure period.
(d) Remedies
In the event of a Default by Lessee and Lessee's failure to cure such Default if such a cure period is applicable, Lessor may at any time and with or without notice do any one or more of the following in addition to any rights or remedies permitted by law:
(1) Re-enter the Lease Premises, remove all persons and property, and repossess and enjoy such premises; or
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(2) Terminate this Lease and Lessee's right of possession of the Lease Premises by any lawful means. The termination shall not relieve Lessee of any obligation, monetary or otherwise, which has accrued prior to the date of termination. Such termination shall be effective upon Lessor's giving written notice and upon Lessee’s receipt of such notice. Lessee shall immediately surrender possession of the Lease Premises to Lessor.

Lessor shall be entitled to recover from Lessee all amounts to which Lessor is entitled pursuant to Section 1951.2 of the California Civil Code, or any other provision of law, including any necessary Repair, renovation, alteration, remediation, or removal of Improvements; or
(3) Maintain this Lease in full force and effect and recover any rent, royalty, or other consideration as it becomes due without terminating Lessee's right of possession regardless of whether Lessee shall have abandoned the Lease Premises, subject to the conditions imposed by Cal. Civil Code § 1951.2; or
(4) Exercise any other right or remedy which Lessor may have at law or equity. (e) Determination of Rental Value
If rent under this Lease is calculated as a percentage of Lessee’s income attributable to the Lease Premises and Lessee abandons the Lease Premises during some or all of the applicable period, then the reasonable rental value shall be the percentage of proceeds Lessor would have received had Lessee operated the Lease Premises in the usual and customary manner.
(f) Waiver of Rights
The failure or delay of either party to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any Breach by the other party.

Lessor’s acceptance of any rent shall not be considered a waiver of any preexisting Breach by Lessee other than the failure to pay the particular rent accepted regardless of Lessor’s knowledge of the preexisting Breach at the time rent is accepted.

13. RESTORATION OF LEASE PREMISES AND ENVIRONMENTAL MATTERS (a) Restoration of Lease Premises
(1) Upon expiration or sooner termination of this Lease, Lessee must immediately surrender possession of the Lease Premises to Lessor. Prior to the time of surrender, Lessee must remove all or any Improvements together with the debris and all parts of any such Improvements at its sole expense and risk, regardless of whether Lessee 154
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actually constructed or placed the Improvements on the Lease Premises; or Lessor, at its sole and absolute discretion, may itself remove or have removed all or any portion of such Improvements at Lessee's sole expense. Lessor may waive all or any part of this obligation in its sole discretion if doing so is in the best interests of the State. (2) As a separate and related obligation, Lessee shall restore the Lease Premises as nearly as possible to the conditions existing prior to the installation or construction of any Improvements. For purposes of this Lease, restoration includes removal of any landscaping; removal of any Hazardous Materials; and to the extent possible, undoing any grading, fill, excavation, or similar alterations of the natural features of the Lease Premises. Lessor may waive all or any part of this obligation in its sole and absolute discretion.
(3) Unless otherwise provided for in this Lease, Lessee shall submit to Lessor no later than one (1) year prior to the expiration of this Lease either: (a) an application and minimum expense deposit for a new lease for the continued use of the Lease Premises, or (b) a plan for the restoration of the Lease Premises to be completed prior to the expiration of the lease term together with a timeline for obtaining all necessary permits and conducting the work prior to the expiration of this Lease. (4) In removing any or all Improvements, or conducting any restoration work, Lessee shall be required to obtain any permits or other governmental approvals as may then be required by any Regulatory Agency, including, without limitation, any Environmental Law.
(5) Lessor may, upon written notice, in its sole and absolute discretion, accept title to any or all Improvements at the termination of this Lease. Lessor shall notify Lessee that Lessor intends to take title to any or all Improvements within six (6) months of Lessee submitting a plan for restoration under Paragraph 13(a)(3)(b) above. If Lessor elects to take title to any such Improvements, Lessee shall deliver to Lessor such documentation as may be necessary to convey title to such Improvements to Lessor free and clear of any liens, mortgages, loans, or any other encumbrances. Lessor shall not pay, and Lessee shall not be entitled to compensation for Lessor’s taking title to such property.
(b) Environmental Matters
(1) Lessee’s Obligations:
(i) Lessee will not use, occupy, or permit any portion of the Lease Premises to be used or occupied in violation of any Environmental Law. Lessee shall not manufacture or generate or store Hazardous Material on the Lease Premises unless 155
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specifically authorized under other terms of this Lease. (ii) Lessee shall practice conservation of water, energy, and other natural resources. (iii) Lessee shall notify Lessor and the appropriate governmental emergency response agency, or agencies immediately in the event of any release or threatened release of any Hazardous Material.
(2) Lessor may at any time during the Lease term require Lessee to conduct at its own expense and by a contractor approved by Lessor an independent environmental site assessment or inspection for the presence or suspected presence of Hazardous Material generated, used, placed, disposed, stored, or transported on the Lease Premises during the term of the Lease. Lessee shall provide the results of the assessment or inspection to Lessor and the appropriate governmental response agency or agencies and shall further be responsible for removing or taking other appropriate remedial action regarding such Hazardous Material in accordance with applicable Environmental Law.
(3) Environmental Indemnity.

Lessee shall indemnify, defend, and hold Lessor and Lessor’s, officer, appointees, volunteers, employees, agents, successors and assigns free and harmless from and against all Damages that may at any time be imposed upon, incurred by, or asserted or awarded against Lessor in connection with or arising from any Breach of Lessee’s obligations hereunder; or out of any violation by Lessee of any Environmental Law; or resulting in the imposition of any lien or claim for the recovery of any costs for environmental cleanup or other response costs relating to the release or threatened release of Hazardous Materials on the Lease Premises during the Lessee’s tenancy. This obligation shall include any prior leases between Lessor and Lessee and will continue through any periods Lessee is in holdover, unlawful detainer, or any subsequent month- to-month tenancies created by operation of law. Lessee’s obligations hereunder will survive the expiration or sooner termination of this Lease. (4) Violation of this section shall constitute grounds for termination of the Lease. Lessor, shall notify Lessee when, in Lessor’s opinion, Lessee has violated the provisions of this section. Lessee shall immediately discontinue the conduct and respond within five (5) business days. Lessee shall take all measures necessary to remedy the condition.

14. QUITCLAIM
Lessee shall, upon the early termination of this Lease and at Lessor’s request, execute and 156
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deliver to Lessor in a form provided by Lessor a good and sufficient release of all rights under this Lease. Should Lessee fail or refuse to deliver such a release, Lessor may record a written notice reciting such failure or refusal. This written notice shall, from the date of its recordation, be conclusive evidence against Lessee of the termination of this Lease and all other claimants.

15. HOLDING-OVER
(a) This Lease shall terminate without further notice upon the expiration of the term of this Lease. Lessee shall have removed any Improvements and completed any restoration as required by Lessor prior to the expiration of this Lease, and shall surrender possession of the Lease Premises. Any failure by the Lessee to remove Improvements, restore the Lease Premises, and/or surrender possession of the Lease Premises at the expiration or sooner termination of this Lease shall not constitute a renewal or extension and shall not give Lessee any rights in or to the Lease Premises or any part thereof except as expressly provided in this Lease. Lessee shall be deemed in unlawful detainer of the Lease Premises and Lessor shall be entitled to all resulting legal remedies. (b) Lessor may, in its sole discretion, choose to accept Rent for the Lease Premises instead of immediately taking legal action to recover possession of the Lease Premises. Any tenancy created by operation of law on Lessor’s acceptance of rent shall be deemed a month-to-month tenancy regardless of what sum or sums Lessee delivers to Lessor. Except as set forth below, any subsequent tenancy created in this manner shall be on the same terms, covenants, and conditions set forth in this Lease insofar as such terms, covenants, and conditions can be applicable to a month-to-month tenancy (c) In recognition of the increased accounting, land management, and supervisory staff time required for month-to-month tenancies, the rent for each month or any portion thereof during such holdover period may be an amount equal to one hundred fifty percent (150%) of one-twelfth (1/12) of the total compensation for the most recent year paid. In the event this Lease does not require monetary compensation, Lessor shall have the right to establish rent based on the fair market value of the Lease Premises. The month-to-month tenancy may be terminated by Lessee or Lessor upon thirty (30) calendar days’ prior written notice to the other.

16. ADDITIONAL PROVISIONS
(a) Waiver
(1) No term, covenant, or condition of this Lease and no omission, neglect, Default or Breach of any such term, covenant or condition shall be deemed to have been waived by Lessor's acceptance of a late or nonconforming performance or otherwise, unless such a waiver is expressly acknowledged by Lessor in writing. No delay or omission of Lessor to exercise any right or power arising from any omission, neglect, 157
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Suisun City City CouncilMay 23, 2023

Suisun City City Council
May 23, 2023