City Council Chambers
14343 Civic Drive
Victorville, CA
www.victorvilleca.gov
VICTORVILLE CITY COUNCIL
VICTORVILLE LIBRARY BOARD OF TRUSTEES
SOUTHERN CALIFORNIA LOGISTICS RAIL AUTHORITY
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
THE CITY AS HOUSING ASSETS SUCCESSOR
JOINT POWERS FINANCING AUTHORITY
VICTORVILLE WATER DISTRICT
Regular Meeting Agenda
Tuesday, February 7, 2023
6:00 p.m. Regular Session
The
City
Council
holds
its
business
meetings
in
public
in
accordance
with
the
requirements
of
the
Ralph
M.
Brown
Act,
its
established
policies
and
procedures,
and
its
adopted
parliamentary
authority.
The
Council
strives
to
carry
out
its
meetings
in
an
atmosphere
of
professionalism
with
full
participation
by
members
of
the
body
and
the
public.
As
such,
the
Presiding
Officer
is
empowered
to
govern
City
Council
Meetings
to
foster
the
efficient
and
fair
administration
of
City
business
and
reserves
the
right
to
enforce
(or
cause
to
be
enforced)
the
Meeting
Rules
of
Conduct
and
Decorum
as
set
forth
in
Chapter
5 of
the
City
Council Policy and Procedures Manual.
The
City
Council
welcomes
and
encourages
public
participation
and
invites
the
community
to
attend
in
person.
Now
that
COVID-19
cases
in
our
area
have
reduced
to
a
point
that
social
distancing
requirements
have
been
lifted,
City
Council
Meetings
will
be
held
in-person
at
City
Hall
in
Council
Chambers.
Remote
viewing
of
our
Council
Meetings
is
available
through
YouTube,
but
public comments must be given in-person at the meeting or in advance as noted below.
Public
Comments:
Members
of
the
public
may
submit
comments
electronically
to
by
4 p.m.
the
day
of
the
meeting
to
be
distributed
to
City
Council.
Participants
are
invited
to
address
the
Council
on
agendized
and
non-agendized
topics
at
the
beginning
of
the
meeting.
Public
comments
will
be
no
longer
than
three
(3)
minutes
per
community
member.
Should
a
speaker
conclude
their
comments
prior
to
the
expiration
of
three
(3)
minutes,
the
speaker
waives
the
right
to
speak
for
any
remaining
amount
of
time.
For
further
information
about
how
to
address
the
Council,
please refer to the City’s website at
victorvilleca.gov/government/agendas
.
In
compliance
with
the
Americans
with
Disabilities
Act,
if
you
need
special
assistance
to
participate
in
this
meeting,
please
contact
the
City
Clerk’s
office
at
(760)
955-5188
no
later
than
72 hours
prior
to
the
meeting.
6:00 p.m. Regular Session
Call to Order
Roll Call
Invocation: Pastor Dane Davis of Impact Christian Church
Pledge of Allegiance: Police Captain John Wickum
Proclamations/Special Presentations
Presentation
Recognizing
Natalia
Jackson,
Winner
of
the
City’s
Annual
Civil
Rights
Memorial
Essay
Contest
and,
Heritage
Victor
Valley
Medical
Group,
Sponsor
of
the
City’s Annual Civil Rights Memorial Essay Contest
Proclamation Recognizing February as Teen Dating Violence Awareness Month
Victor Valley Wastewater Reclamation Authority Operations Overview
City Clerk Presents Agenda/Revisions to Agenda
Conflict of Interest Declarations
Any
items
on
this
agenda
that
might
be
a
conflict
of
interest
to
any
Council
Members/Board Members should be identified at this time.
Introduction to Public Comments
Public Comments
PUBLIC HEARING(S)
1. Proposed
Ordinance
No.
2434
Revising
and
Establishing
Speed
Zones
Upon
Certain
Streets
in
the
City
by
amending
Victorville
Municipal
Code
Section
12.20.020
Recommendation:
That Honorable City Council:
(1)
Open
and
conduct
a
public
hearing
to
receive
comments
regarding
Ordinance
No. 2434 and the Municipal Code Amendment therein;
(2)
Find
the
Municipal
Code
Amendment
exempt
from
environmental
review
under
the
California
Environmental
Quality
Act
(CEQA)
pursuant
to
Sections
15060(c)(2),
15060(c)(3), and/or 15061(b)(3) of the CEQA Guidelines; (3) Introduce Ordinance No. 2434 for adoption and first reading by title only; and (4) Waive further public reading in full of proposed Ordinance No. 2434.
CONSENT CALENDAR
2. Notice of Completion – Sewer Main Lining Various Locations 2022
Recommendation:
That
the
Honorable
City
Council
accept
as
complete
and
approve
the
Notice
of
Completion for Sewer Main Lining Various Locations 2022.
3. Commercial Demand Schedule No. 14
Recommendation:
That
the
City
Council
and
Board
of
Directors
ratify
Commercial
Demand
Schedule
No.
14 in
the
amount
of
$7,136,165.38,
covering
Electronic
Fund
Transfers
No.
333125
through
333278
and
Warrant
No.
788646
through
788867
for
12/22/2022
through
01/19/2023,
per
the
adopted
budget
for
Fiscal
Year
2022-2023
for
the
period covering July 1, 2022 through June 30, 2023.
4. Payroll Warrant List
Recommendation:
That
the
City
Council
and
Board
of
Directors
ratify
Payroll
Demand
Schedule
No.
6B
for
Payroll
Period
December
09,
2022,
through
December
23,
2022,
in
the
amount
of
$1,883,812.79
covering
Check
Nos.
33203
through
33216,
including
Vendor
checks.
Please
note
employee
Check
No.
33207
has
a
live
Check
and
an
EFT
Advice.
Also
included
are
Advice
Nos.
295654
through
296132,
per
adopted
budget
for
Fiscal
Year
2022-2023
(period
covering
July
1,
2022,
through
June
30,
2023).
5. Partial Securities Release for Tract Map No. 16774
Recommendation:
That the Honorable City Council:
(1) Accept the Water, Drainage and Sewer public improvements; and (2)
Approve
an
additional
20-percent
release
of
the
water,
drainage,
and
sewer
Faithful Performance Securities for Tract Map No. 16774.
6. Partial Securities Release for Tract Map No. 18100
Recommendation:
That the Honorable City Council:
(1) Accept the Water and Sewer public improvements; and (2)
Approve
an
80-percent
release
of
the
water
and
sewer
Faithful
Performance
Securities for Tract Map No. 18100.
7. Partial Securities Release for Tract Map No. 16828
Recommendation:
That the Honorable City Council:
(1) Accept the Water and Sewer public improvements; and (2)
Approve
an
additional
20-percent
release
of
the
water
and
sewer
Faithful
Performance Securities for Tract Map No. 16828.
8. VMUS Operating Result Report for FY 2022 - Quarter 4
Recommendation:
That the Honorable City Council review and file this report.
9. VMUS Operating Result Report for FY 2023 - Quarter 1
Recommendation:
That the Honorable City Council review and file this report.
10. Building Division Activity Report
Recommendation:
That the Honorable Council review and file.
11. Minutes
of
the
November
1,
2022,
November
15,
2022,
and
December
6,
2022,
Regular City Council Meetings
Recommendation:
That
the
Honorable
City
Council
approve
the
minutes
of
the
Regular
City
Council
Meetings held on November 1, 2022, November 15, 2022, and December 6, 2022 WRITTEN COMMUNICATIONS
12. Approval
to
execute
an
Interconnection
Agreement
(“IA”)
with
Kern
River
Gas
Transmission
Company
(“KRGT”)
for
a
natural
gas
pipeline
interconnection,
meter
station
facilities,
odorizer,
and
Victorville
Municipal
Utility
Services
(“VMUS”)
pipeline
extension
construction
project
with
an
environmental
exemption
located
at
the Southern California Logistics Airport (“SCLA”)
Recommendation:
That the Honorable City Council:
(1)
Find
the
project
categorically
exempt
from
environmental
review
under
the
California
Environmental
Quality
Act
(“CEQA”)
pursuant
to
CEQA
Guidelines
Sections
15301
(Existing
Facilities)
and
15303
(New
Construction
or
Conversion
of
Small Structures) and approve the filing of the attached Notice of Exemption; (2)
Adopt
Resolution
No.
23-008
approving
an
additional
appropriation
for
the
Gas
Utility Fund for Fiscal Year 2022-2023 annual budget; and (3)
Approve
the
Interconnection
Agreement
with
KRGT
in
an
amount
not
to
exceed
$1,112,171
and
authorize
the
Mayor
to
execute
the
agreement,
subject
to
such
non-substantive
changes
as
may
be
necessary
and
approved
by
the
City
Manager
and the City Attorney prior to said execution.
13. Approval to enter into a Five-Year Lease of Carryover Free Production Allowance
Recommendation:
That the Honorable Victorville Water District Board of Directors:
(1)
Approve
a
five-year
agreement
by
and
between
the
Victorville
Water
District
and
the
Helendale
Community
Services
District
to
lease
Carryover
Free
Production
Allowance; and
(2) Authorize the District’s General Manager to execute the lease.
14. Consideration
of
Resolution
Nos.
23-007
and
VWD
23-001
approving
Joint
Community
Facilities
Agreements
by
and
among
Community
Facilities
District
No.
4 of
the
Adelanto
Elementary
School
District,
the
City
of
Victorville,
the
Victorville
Water District, and D.R. Horton Los Angeles Holding Company, Inc
Recommendation:
That
the
Honorable
City
Council
and
the
Honorable
Board
of
Directors
of
the
Victorville
Water
District
adopt
Resolution
Nos.
23-007
and
VWD
23-001,
respectively, which:
(1)
Approve
the
Joint
Community
Facilities
Agreements
by
and
among
Community
Facilities
District
No.
4 (“CFD
No.
4”)
of
the
Adelanto
Elementary
School
District
(“School
District”),
the
City
of
Victorville
(“City”),
the
Victorville
Water
District
(“Water
District”),
and
D.R.
Horton
Los
Angeles
Holding
Company,
Inc.
(“D.R.
Horton”),
attached
thereto
as
Attachment
B
and
Attachment
C,
subject
to
such
non-
substantive
changes
as
deemed
appropriate
by
the
City
Manager
in
consultation
with
the
City
Attorney
and
the
Water
District
General
Manager
in
consultation
with
the Water District Counsel;
(2)
Authorize
the
Mayor
and
President
of
the
Water
District
Board
of
Directors
to
execute the agreements; and
(3)
Further
authorize
the
City
Manager,
the
Water
District
General
Manager,
and
other
authorized
City
and
Water
District
officers
and
officials
to
take
such
actions
and
execute
such
documents
and
certificates
as
may
be
necessary
to
effectuate
the purposes of said Joint Community Facilities Agreements.
15. Wellness
Center
Project
-
Phase
1 Supplemental
Work
Order
(SWO)
Nos.
8 and
9 and Phase 2 SWO Nos. 2 and 3
Recommendation:
That
the
Honorable
City
Council
approve
for
the
Wellness
Center
construction
contracts:
for
Phase
1,
SWO
Nos.
8 and
9,
resulting
in
an
increase
not
to
exceed
$736,723.97;
and
for
Phase
2,
SWO
Nos.
2 and
3,
resulting
in
an
increase
not
to
exceed $207,556.86.
16. Approve
the
Purchase
of
a
Replacement
Trailer
Mounted
Vacuum
Excavation
Machine, Project CC23-064
Recommendation:
That
the
Honorable
Victorville
Water
District
Board
of
Directors
(Board)
approve
the
purchase
of
a
replacement
trailer
mounted
vacuum
excavation
machine,
Project
CC23-064,
for
an
amount
not
to
exceed
$131,571.01
from
Haaker
Equipment
Company.
17. Contract
with
Rite-Way
Roofing
Corporation
-
Transportation
Center
Re-Roof
Project
Recommendation:
That
the
City
Council
award
a
contract
to
Rite-Way
Roof
Corporation
in
the
amount
of $155,206.00 for the Transportation Center Re-Roof, Project CC23-063.
18. Consultant/Professional
Services
Provider
Agreement
with
TR
Design
Group
for
the
Green
Tree
Clubhouse
Library
Relocation,
Phase
A
Revision
and
Phase
B,
Project CC22-037-A
Recommendation:
That
the
Honorable
City
Council
approve
a
Consultant/Professional
Services
Provider
Agreement
in
the
amount
of
$896,014.98
with
TR
Design
Group,
Inc.
for
the
Green
Tree
Clubhouse
Library
Relocation,
Phase
A
Revision
and
Phase
B,
Project CC22-037-A
19. Agreement
with
Fenagh
Engineering
&
Testing
for
Material
Testing
-
Guardrail
Project
Recommendation:
That
the
Honorable
City
Council
approve
a
Consultant
/
Professional
Services
Provider
Agreement
with
Fenagh
Engineering
&
Testing
in
an
amount
not
to
exceed
$14,976.00
for
construction
material
testing
for
the
City’s
Guardrail
Project
(CC23-
024).
20. Agreement
with
Fenagh
Engineering
&
Testing
for
Material
Testing
-
Old
Town
Sidewalk Connectivity Project & Tawney Ridge Traffic Signal Project
Recommendation:
That
the
Honorable
City
Council
approve
a
Consultant
/
Professional
Services
Provider
Agreement
with
Fenagh
Engineering
&
Testing
in
an
amount
not
to
exceed
$49,992.00
for
construction
material
testing
for
the
Old
Town
Sidewalk
Connectivity
Project and the Tawney Ridge Traffic Signal Project.
21. Industrial
Wastewater
Treatment
Plant
-
Amendment
No.
14 to
Contract
with
Woodard and Curran
Recommendation:
That
the
Honorable
City
Council
approve
Amendment
No.
14 to
the
contract
with
Woodard
and
Curran
for
the
operation
of
the
Industrial
Wastewater
Treatment
Plant,
increasing
compensation
to
account
for
sales
tax
and
base
markup
fees
inadvertently
omitted
from
the
additional
scope
approved
under
Amendment
No.
13. 22.
La
Mesa
/
Nisqualli
Interchange
404
Permit
Compliance
Mitigation
Site
Coordination
-
Amendment
No.
4 to
the
Consultant
/
Professional
Services
Provider
Agreement with WSP USA
Recommendation:
That
the
Honorable
City
Council
approve
Amendment
No.
4 to
the
Consultant
/
Professional
Services
Provider
Agreement
with
WSP
USA
Inc.,
to
increase
the
compensation
by
an
amount
not
to
exceed
of
$54,296.00
for
the
La
Mesa
/
Nisqualli Interchange Permit Compliance and Mitigation Site Coordination.
23. Santa
Fe
Wash
Sewer
Realignment
Project
-
Amendment
No.
1 to
the
Consultant
/
Professional Services Provider Agreement with Albert A. Webb Associates
Recommendation:
That
the
Honorable
City
Council
approve
Amendment
No.
1 to
the
Consultant
/
Professional
Services
Provider
Agreement
BM20-076
with
Albert
A.
Webb
Associates
in
an
amount
not
to
exceed
$483,039.00
for
the
Santa
Fe
Wash
Sewer
Realignment Project.
24. Appointment to the Community Services Advisory Committee
Recommendation:
That
Your
Honorable
City
Council
appoint
Lina
Amaral
to
serve
on
the
Community
Services
Advisory
Committee,
as
recommended
by
Council
Member
Harriman,
and
re-appoint
Michael
Smith
to
continue
serving
the
Community
Services
Advisory
Committee as recommended by Mayor Jones.
25. Planning Commissioner Stipend Survey
Recommendation:
Any action is at the discretion of the City Council.
26. City Manager Reports
27. Discussion and Possible Action Regarding Upcoming Agenda Items
28. Reports from Council Members
Adjournment
Item Number: 1
City Council / Board of Directors
Public Hearing(s)
Meeting of: February 7, 2023
Submitted By:
Brian Gengler, City Engineer
Subject:
Proposed Ordinance No. 2434 Revising and Establishing Speed Zones Upon Certain Streets in the City by amending Victorville Municipal Code Section 12.20.020.
Recommendation:
That Honorable City Council:
1) Open and conduct a public hearing to receive comments regarding Ordinance No. 2434 and the Municipal Code Amendment therein;
2) Find the Municipal Code Amendment exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2), 15060(c)(3), and/or 15061(b)(3) of the CEQA Guidelines; 3) Introduce Ordinance No. 2434 for adoption and first reading by title only; and 4) Waive further public reading in full of proposed Ordinance No. 2434.
Fiscal Impact:
There will be no fiscal impact resulting from the recommended action.
Strategic Plan Goal:
The recommended action aligns with Strategic Plan Goal B., Public Safety, Strategy 1.d., "Increase police resources to reduce response times, engage in proactive policing and enhance the level of traffic enforcement."
Background:
In order for posted speed limits to be enforceable, California law requires that the speed zones be established with an Engineering and Traffic Survey in accordance with Section 2B.13 of the California Manual on Uniform Traffic Control Devices (MUTCD) and the California Vehicle Code (CVC), including Section 627. A speed zone is a segment of street which has been included in an engineering and traffic survey for the purpose of establishing speed limits.
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Usually, each speed zone must be re-evaluated not more than every five years to determine the correctness of the existing speed limits. The procedure for establishing the speed limit for a particular speed zone involves measuring from a stationary location the actual speed of (typically 100) motor vehicles in free flowing traffic. Free flowing traffic is not influenced by congestion or slow moving vehicles. From this data, the 85th percentile speed is determined. The 85th percentile speed is defined as the speed at or below which 85 percent of all the observed vehicles travel. For a sample of 100 vehicles, the 85th percentile speed is the speed of the 16th fastest vehicle.
The MUTCD stipulates that the local authority (in this case the City) round speed limits to the nearest five miles per hour (mph) increment to the 85th percentile speed. The posted speed limit may be reduced by five mph from the rounded speed limit if there is sufficient justification documented by a registered civil or traffic engineer. However, reductions to the speed limit greater than 5 mph below the rounded speed limit may not be applied.
The term “prima facie” as used in the California Vehicle Code, is a speed limit that applies when no other specific speed limit is posted and is basically a default speed limit. A 25 mph prima facie speed limit can be applicable to business and residential areas without other posted speed limits, and school zones (while children are going to or leaving school) and when passing a senior center per CVC 22352.
The maximum speed limit is 65 mph (unless 70 mph is designated on certain State highways) and the maximum speed limit is 55 mph for a two-lane undivided highway (not more than one through lane of travel in each direction) per CVC 22349. The 65 mph and 55 mph speed limits described above are prima facie speed limits. These prima facie speed limits can be decreased.
Whenever a local authority determines upon the basis of an engineering and traffic survey that the limit of 65 miles per hour is more than is reasonable or safe upon any portion of any street other than a state highway where the limit of 65 miles per hour is applicable, the local authority may by ordinance determine and declare a prima facie speed limit of 60, 55, 50, 45, 40, 35, 30, 25, 20, or 15 miles per hour, per CVC 22358 (a). CVC Sections 22357 and 22358 require that speed limits be determined by an ordinance.
Discussion:
Engineering staff has prepared the required Engineering and Traffic Surveys for several City streets which were scheduled to be re-evaluated. The reported traffic collisions for the various street segments which were studied were evaluated and taken into consideration for the recommended speed limits. The attached ordinance reflects the recommended speed limits. In the table within the ordinance, the speed limits are listed in the column with the heading “Declared Prima Facie Speed Limits”.
Based on the engineering and traffic surveys prepared, the posted speed limits are recommended to be increased for several streets. For all the streets listed below the speed limits reflect a recommended increase by 5 mph, expect for Rancho Rd., with a recommended increase from 35 mph to 45 mph.
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Amargosa Rd. (1/2 mile south of Bear Valley Rd.) 45 mph to North Mall Entrance)
Amethyst Rd. (Seneca Rd. to Mojave Dr.) 55 mph
Arlette Dr. (Seneca Rd. to Hook Blvd.) 45 mph
Dos Palmas Rd. (Fuchsia Ln. to Hwy 395) 45 mph
Dos Palmas Rd. (Mesa Linda Ave. to Cobalt Rd. 45 mph
Hesperia Rd. (Bear Valley Rd. to Jasmine St.) 40 mph
Hesperia Rd. (Jasmine St. to Nisqualli Rd.) 50 mph
Mesa Linda Ave. (Luna Rd. to Dos Palmas Rd.) 40 mph
Mesa View Dr. (Olivine Rd. to Dos Palmas Rd.) 45 mph
Nisqualli Rd. (Mariposa Rd. to Hesperia Rd.) 50 mph
Rancho Rd. (Village Dr. to Desert Willow St.) 45 mph
Seventh Ave. (Bear Valley Rd. to Nisqualli Rd.) 45 mph
St. Andrews Dr. (Green Tree Blvd. to Lorene Dr.) 40 mph Third Ave. (Nisqualli Rd. to Green Tree Blvd.) 45 mph
Topaz Rd. (Eucalyptus to Sycamore St.) 45 mph
Village Dr. (Amargosa Rd. to Air Expressway) 55 mph
The following speed limits are recommended for new speed zones.
La Mesa Rd. (Mesa View Dr. to Hwy 395) 45 mph
Third Ave. (Silica Dr. to Nisqualli Rd.) 40 mph
Topaz Rd. (Luna Rd. to Dos Palmas Rd.) 50 mph
The following speed limits will be corrected due to a previous clerical error in the current ordinance.
Diamond Rd. (Hook Blvd. to Mojave Dr.) 40 mph
Green Tree Blvd. (Seventh St. to 400 ft. east 40 mph
of Wimbleton Dr.)
The following speed limit (which is currently 25 mph) is recommended to revert to the applicable prima facie speed limit and will therefore not be listed in the ordinance.
Ashley Glenn Dr. (Hook Blvd. to Mojave Dr.) 25 mph
All other posted speed limits in the City will remain unchanged.
The adoption of the proposed speed limit amendments set forth in the Ordinance are exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and/or 15061(b)(3).
Said adoption is being made pursuant to the California Vehicle Code and supported by required Engineering and Traffic Surveys and therefore will not result in a direct or reasonably foreseeable indirect physical change in the environment; is not considered a 2 9
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“project” under CEQA Guidelines Section 15378; and/or can be seen with certainty to have no possibility of a significant impact on the environment.
Staff recommends that the Honorable City Council: open and conduct a public hearing to receive comments regarding Ordinance No. 2434; find the ordinance exempt from review under CEQA; introduce the ordinance for adoption and first reading by title only; and waive further public reading of the ordinance.
Staff remains available for any questions the City Council may have.
Attachment: A. Ordinance No. 2434
ATTACHMENT A
O
RDINANCE NO. 2434
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
VICTORVILLE REVISING AND ESTABLISHING SPEED ZONES UPON
CERTAIN STREETS IN THE CITY BY AMENDING TITLE 12, CHAPTER
12.20, SECTION 12.20.020 OF THE VICTORVILLE MUNICIPAL CODE, ENTITLED “DECREASE OF STATE LAW MAXIMUM SPEED”
T
HE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Amendment of Section 12.20.020 of the Victorville Municipal Code Section 12.20.020 of the Victorville Municipal Code is hereby amended in its entirety to read as follows:
12.20.020 - Decrease of state law maximum speed.
It is determined upon the basis of an engineering and traffic investigation that the speed permitted by state law as applicable upon the following streets is greater than is reasonable or safe under the conditions found to exist upon such streets, and it is declared that the prima facie speed limits shall be as set forth in Table 12.20.020 on those streets or parts of streets designated in this section when signs are erected giving notice thereof.
Table 12.20.020
Decrease of State Law Maximum Speed
S
treet From To
Declared Prima
Facie Speed
Limits
Air Expressway Adelanto Road Phantom St 60 mph
Phantom St Village Dr 60 mph
Village Dr National Trails Hwy 60 mph
Amargosa Rd. .5 mi. S. of Bear Valley
Rd
Bear Valley Rd 45 mph
Bear Valley Rd North Mall Entrance 45 mph
North Mall Entrance King Ranch Rd 45 mph
King Ranch Rd Palmdale Rd 45 mph
Palmdale Rd Seneca Rd 45 mph
Seneca Rd Mojave Dr 45 mph
Mojave Dr Village Dr 50 mph
Amethyst Rd. Sycamore St Bear Valley Rd 50 mph
Ordinance No. 2434
Bear Valley Rd Luna Rd 45 mph
Luna Rd Palmdale Rd 50 mph
Palmdale Rd Seneca Rd 50 mph
Seneca Rd Hook Blvd 55 mph
Hook Blvd Mojave Dr 55 mph
Arlette Dr Seneca Rd Hook Blvd 45 mph
Arrowhead Dr. Nisqualli Rd 800’ south of Petite St 50 mph 800’ south of Petite St Green Tree Blvd 40 mph
Green Tree Blvd Camelback Dr 25 mph
Bear Valley Rd. Monte Vista Rd Hwy 395 60 mph
Hwy 395 Amethyst Rd 55 mph
Amethyst Rd Dunia 50 mph
Dunia Cottonwood Ave 40 mph
Cottonwood Ave Cypress Ave 50 mph
Cypress Ave 2nd Ave 50 mph
2nd Ave Apatite Ave 50 mph
Apatite Ave Spring Valley Pkwy 50 mph
Spring Valley Pkwy E. City Limit 50 mph
Burning Tree Dr. Yates Rd Molino Dr 25 mph
Cantina Dr. Bear Valley Rd Durango Dr 50 mph
Durango Dr La Mesa Rd 50 mph
Civic Dr. Amargosa Rd Seneca Rd 35 mph
Seneca Rd Roy Rogers Dr 45 mph
Clovis St. El Evado Rd Llanada Ave 25 mph
Cobalt Rd. Sycamore St Bear Valley Rd 40 mph
Bear Valley Rd La Mesa Rd 40 mph
Luna Rd Palmdale Rd 40 mph
Cottonwood Ave. Bear Valley Rd Mariposa Rd 45 mph
Crestview Dr. Hesperia Rd Brentwood Dr 25 mph
Diamond Rd Hook Blvd Mojave Dr 40 mph
Dos Palmas Rd. Fuchsia Ln HWY 395 45 mph
Mesa Linda to Cobalt Rd 45 mph
Cobalt Rd Amethyst Rd 45 mph
Eagle Ranch Pkwy Bear Valley Rd Honeybear Ln 45 mph
Ordinance No. 2434
Honeybear Ln Mesa Linda Ave 35 mph
Mesa Linda Ave Cantina Dr 40 mph
El Evado Rd. Northstar Ave La Mesa Rd 45 mph
La Mesa Rd Luna Rd 45 mph
Palmdale Rd Seneca Rd 45 mph
Seneca Rd Mojave Dr 50 mph
Mojave Dr Hopland St 50 mph
Hopland St Haverhill St 25 mph
El Rio Rd. La Mesa Rd Dos Palmas Rd 35 mph
Eleventh St. Verde St 1250' n/o Verde St 25 mph
1250' n/o Verde St D St 35 mph
Eucalyptus St Mesa Linda St Cloverly Ave 45 mph
Fifth Ave. Bear Valley Rd Silica Dr 40 mph
First Ave. Bear Valley Rd Jasmine St 35 mph
Jasmine St Nisqualli Rd 35 mph
Nisqualli Rd Green Tree Blvd 35 mph
Green Tree Blvd. 7th St 400’ east of
Wimbleton
40 mph
400’ east of Wimbleton Hesperia Rd 50 mph
Hesperia Rd. Bear Valley Rd Jasmine St 40 mph
Jasmine St Nisqualli Rd. 50 mph
Nisqualli Rd. Verde St 50 mph
Verde St D St 35 mph
Hollyvale St. Eucalyptus St Sycamore St 35 mph
Hook Blvd. Topaz Rd Amethyst Rd 50 mph
Amethyst Rd El Evado Rd 40 mph
El Evado Rd Amargosa Rd 50 mph
Hopland St. El Evado Rd Llanada Rd 35 mph
Hughes Rd. La Paz Dr Rodeo Dr 40 mph
Rodeo Dr Hesperia Rd 30 mph
Industrial Blvd. Bear Valley Rd Silica Rd 45 mph
Jade Rd. Bear Valley Rd La Mesa Rd 40 mph
Jasmine St. 2nd Ave Hesperia Rd 40 mph
Hesperia Rd Industrial Blvd 45 mph
La Mesa Rd Mesa View Dr Hwy 395 45 mph
Ordinance No. 2434
Hwy 395 Amargosa Rd 45 mph
La Paz Dr. Pebble Beach Dr Roy Rogers Dr 35 mph
Roy Rogers Dr Mojave Dr 40 mph
Mojave Dr Colina St 35 mph
Colina St northerly end 25 mph
Luna Rd. Mesa View Dr. Hwy 395 40 mph
Hwy 395 Mesa Linda Ave 40 mph
Mesa Linda Ave Amethyst Rd 40 mph
Amethyst Rd El Evado Rd 40 mph
El Evado Rd Amargosa Rd 40 mph
Mall Blvd. Bear Valley Rd Mall driveway 25 mph
Mariposa Rd. Bear Valley Rd Nisqualli Rd 45 mph
Nisqualli Rd 7th St 50 mph
Mc Art Rd. Palmdale Rd Seneca Rd 40 mph
Mesa Linda Ave. Eagle Ranch Pkwy La Mesa Rd 40 mph
La Mesa Rd Luna Rd 45 mph
Luna Rd Dos Palmas Rd 40 mph
Mesa Linda St Eucalyptus St Sycamore St 40 mph
Mesa View Dr. Olivine Rd Dos Palmas Rd 45 mph
Mojave Dr. Hwy 395 East Trail 60 mph
East Trail Ashley Glen Dr 50 mph
Ashley Glen Dr Amargosa Rd 50 mph
Amargosa Rd Condor Rd 50 mph
Condor Rd 6th St 40 mph
6th St Victor St 30 mph
National Trails
Hwy.
I-15 Mojave River 50 mph
Nisqualli Rd. Mariposa Rd Hesperia Rd 50 mph
Northstar Ave. San Ysidro St El Evado Rd 35 mph
Old Ranch Rd. Sycamore St Amethyst Rd 25 mph
Pacoima Rd. Bear Valley Rd Luna Rd 40 mph
Pahute Rd Ridgecrest Rd Spring Valley Pkwy 40 mph
Petaluma Rd. Bear Valley Rd Northstar Ave 35 mph
Phantom Rd. East Air Expressway Perimeter Rd 60 mph
Perimeter Rd Nevada Ave 60 mph
Ordinance No. 2434
Phantom Rd. West Air Expressway Nevada Ave 55 mph
Rancho Road. El Evado Rd Village Dr 40 mph
Village Dr Desert Willow St 45 mph
Redrock Rd Eagle Ranch Pkwy Topaz Rd 35 mph
Reno Loop Dr. (N) Hook Blvd East Trail 40 mph
Reno Loop Dr. (S) Hook Blvd Hook Blvd 35 mph
Ridgecrest Rd. Bear Valley Rd Pahute Rd 45 mph
Pahute Rd Yates Rd 55 mph
Rodeo Dr. Green Tree Blvd Seneca Rd 40 mph
Seneca Rd Victor St 35 mph
Roy Rogers Dr. Amargosa Rd Civic Dr 45 mph
Civic Dr La Paz Dr 45 mph
Second Ave. Bear Valley Rd Jasmine St 45 mph
Seneca Rd. Amethyst Rd El Evado Rd 50 mph
El Evado Rd Civic Dr 40 mph
La Paz Dr Hesperia Rd 45 mph
Seventh Ave. Bear Valley Rd Nisqualli Rd 45 mph
Seventh St. Mariposa Rd Center St 40 mph
Center St D St 35 mph
Shay Rd. Phantom East end (sewer plant) 55 mph
Shooting Star Dr. Bear Valley Rd Northstar Ave 40 mph
Silica Rd. Seventh Ave Hesperia Rd 35 mph
Hesperia Rd Industrial Blvd 50 mph
Spring Valley
Pkwy.
Bear Valley Rd Pahute Rd 40 mph
St Andrews Dr. Green Tree Blvd Lorene Dr 40 mph
Stoddard Wells Rd. D St I-15 Fwy 50 mph
I-15 Fwy Dante St 45 mph
Dante St Dump Rd 55 mph
Sycamore St. Hwy 395 Topaz Rd 40 mph
Topaz Rd Amethyst Rd 45 mph
Tamarisk Rd Bear Valley Rd Pahute Rd 40 mph
Third Ave. Silica Dr Nisqualli Rd 40 mph
Nisqualli Rd Green Tree Blvd 45 mph
Topaz Rd. Eucalyptus Sycamore St 45 mph
Ordinance No. 2434
Bear Valley Rd Redrock Ave 50 mph
Redrock Ave Luna Rd 50 mph
Luna Rd Dos Palmas Rd 50 mph
Valley Center Dr. 7th St La Paz Dr 35 mph
Village Dr. Mojave Dr Tawney Ridge Ln 45 mph
Tawney Ridge Ln Amargosa Rd 50 mph
Amargosa Rd Air Expressway 55 mph
Yates Rd. Mariposa Rd Green Tree Blvd 45 mph
SECTION 2. CEQA Exemption Finding
The City Council finds that this ordinance is not subject to review under the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2), 15060(c)(3), and/or 15061(b)(3) of the State CEQA Guidelines (California Code of Regulations, Title 14, Chapter 3).
The adoption of the speed limit amendments is being made pursuant to the California Vehicle Code and supported by required Engineering and Traffic Surveys and therefore will not result in a direct or reasonably foreseeable indirect physical change in the environment; is not considered a “project” under CEQA Guidelines Section 15378; and /or can be seen with certainty to have no possibility of a significant impact on the environment.
SECTION 3. Severability
The City Council declares that, should any provision, section, paragraph, sentence, or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.
SECTION 4. Effective Date
This Ordinance shall take effect thirty (30) days after its final passage.
SECTION 5. Repeal of Conflicting Provisions
All provisions of the Victorville Municipal Code as heretofore adopted by the City Council that are in conflict with the provisions of this Ordinance are hereby repealed.
SECTION 6. Certification
The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published according to law.
Item Number: 2
City Council / Board of Directors
Consent Calendar
Meeting of: February 7, 2023
Submitted By:
Brian Gengler, City Engineer
Subject:
Notice of Completion – Sewer Main Lining Various Locations 2022 Recommendation:
That the Honorable City Council accept as complete and approve the Notice of Completion for Sewer Main Lining Various Locations 2022.
Fiscal Impact:
The action will result in no fiscal impact. Retention in the amount of five percent was withheld from each pay estimate during construction. Retention will be released after City Council approval and the recordation of the Notice of Completion. The retention account number, account description, and amount withheld are shown in the table below:
Retention Account Number Account Description Amount Withheld 425-20110-77440 Sewer Main Lining Various
Locations 2022
$66,096.32
Strategic Plan Goal:
This item aligns with Goal E., Strategy 1. in the Strategic Plan, “Invest in Infrastructure” and “Implement the City’s Capital Improvement Program to meet community needs.” Background:
In 2018, the City approved an agreement with Pro-Pipe Inc., a professional pipeline inspection services contractor, to perform a closed-circuit television (CCTV) inspection in accordance with National Association of Sewer Companies (NASSCO) guidelines. Pro- Pipe subcontracted with an engineering consultant to perform a sewer system condition evaluation in accordance with the Pipeline Assessment Certification Program (PACP). As a result, recommendations were made to line deteriorated segments of sewer mains throughout the City.
2 9
4 5
Cured-in-place pipe (CIPP) is a sewer lining process that extends the useful life of existing sewer mains by inserting a resin-impregnated tube into the deteriorated “host” pipe (existing sewer pipe). This process results in a seamless, jointless surface that adds strength to the existing pipe and significantly extends its usable life.
The City Council awarded a construction contract to Southwest Pipeline and Trenchless Corp. in the amount of $1,682,656.50 on February 15, 2022. Based on pre-lining CCTV pipe inspection performed by the contractor, it was found that portions of the existing sewer mains had been previously repaired by Public Works staff, and no longer required lining. The contract quantities were therefore reduced. A total of 21,605 lineal feet of structurally deficient sanitary sewers were lined and/or spot repaired.
Discussion:
The project was completed at a final contract price of $1,321,926.17. The final inspection occurred on October 14, 2022 when the project was substantially completed. The one- year warranty on the improvements began the date the work was accepted as substantially complete. Per California Public Contract Code § 7107(c), within 60 days after the recordation of the Notice of Completion, the City can release the final retention monies withheld on this project, provided there are no claims or unreleased liens against the contract.
Staff recommends that the City Council accept as complete and approve the Notice of Completion for Sewer Main Lining Various Locations 2022.
Staff remains available to answer any questions the Council may have.
Attachments: A. Location Map
B. Notice of Completion
ATTACHMENT A
ATTACHMENT B
RECORDING REQUESTED BY:
CI
TY OF VICTORVILLE
W
HEN RECORDED MAIL TO:
CI
TY OF VICTORVILLE
ATTN: CITY CLERK
P.O. BOX 5001
VICTORVILLE, CA 92393-5001
Recording of this document is fee-exempt under Government SPACE ABOVE THIS LINE FOR RECORDER’S USE Code Section 6103. No Documentary Transfer Tax is due on the document pursuant to Revenue Taxation Code Section 11922 P
UBLIC CONTRACT
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:
1. T
he undersigned is OWNER or agent of the OWNER of the interest or estate stated below in the property hereinafter described.
2. The FULL NAME of the OWNER is CITY OF VICTORVILLE
3. The FULL ADDRESS of the OWNER is 14343 CIVIC DRIVE, VICTORVILLE, CA 92392 A work of improvement on the property hereinafter described was COMPLETED October 14th, 2022
4. The work of improvement completed is described as follows: SEWER MAIN LINING VARIOUS LOCATIONS 2022
5. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is : SOUTHWEST PIPELINE
AND TRENCHLESS CORP
6. The street address of said property is VARIOUS LOCATIONS IN VICTORVILLE CA
7. Assessor’s Parcel Number: N/A
8. The property on which said work of improvement was completed is in the City of VICTORVILLE, County of SAN BERNARDINO, State of CALIFORNIA.
Verification of NON-INDIVIDUAL owner: I, Brian W. Gengler, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Engineer of the aforesaid interest or estate in the property desc ribed in the above notice; that I have read said notice, that I know and unders tand the contents thereof, and that the facts stated therein are true and correct.
at
Victorville, California.
Date Brian W. Gengler, City Engineer
CITY OF VICTORVILLE
Item Number: 3
City Council / Board of Directors
Consent Calendar
Meeting of: February 7, 2023
Submitted By:
John Mendiola, Finance Director / City Treasurer
Subject:
Commercial Demand Schedule No. 14
Recommendation:
That the City Council and Board of Directors ratify Commercial Demand Schedule No. 14 in the amount of $7,136,165.38, covering Electronic Fund Transfers No. 333125 through 333278 and Warrant No. 788646 through 788867 for 12/22/2022 through 01/19/2023, per the adopted budget for Fiscal Year 2022-2023 for the period covering July 1, 2022 through June 30, 2023.
Fiscal Impact:
The total fiscal impact for FY22-23 in the amount of $7,136,165.38 is authorized with this action. The attached report details the total funds paid to vendors.
Background:
Pursuant to the City’s Municipal Code (2.24.080) the attached demands were presented by the departments, audited by the Finance Department and subsequent warrants/wire transfers were issued. All were found to be in conformity to City policies and procedures and funds were budgeted or available to pay said demands. List of commercial warrants and wire transfers are now being presented to Council for approval.
Attachments: A. Commercial Demand Schedule No. 14 Check Register Summary ATTACHMENT A:
Commercial Demand Schedule No. 14 Check Register Summary
CITY OF VICTORVILLE
Report generated: 01/19/2023 08:01 Page 1User:
Program ID:
emesa
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
333125 01/11/2023 EFT 022084 A-1 ENTERPRISE, INC. 1,075.00 333126 01/11/2023 EFT 019621 AGA ENGINEERS, INC. 18,030.26 333127 01/11/2023 EFT 010826 AIR EXPRESSWAY TOWING, IN 75.00 333128 01/11/2023 EFT 000104 DANTIN ENTERPRISES, INC. 16,688.00 333130 01/11/2023 EFT 019580 ASTRUM UTILITY SERVICES 16,100.00 333131 01/11/2023 EFT 010862 BABB, JORDAN 125.00
333132 01/11/2023 EFT 014084 BAUER COMPRESSORS, INC 14,173.29 333133 01/11/2023 EFT 017049 BEBER, NATHAN 907.00
333134 01/11/2023 EFT 000297 BECK OIL, INC. 17,535.71
333135 01/11/2023 EFT 010668 BLX GROUP, LLC 3,000.00
333136 01/11/2023 EFT 010986 BRAUN BLAISING SMITH WYNN 26,867.98 333137 01/11/2023 EFT 014954 BRIDGEPAY NETWORK SOLUTIO 1,881.30 333138 01/11/2023 EFT 014820 CAL-STATE AUTO PARTS 839.72 333139 01/11/2023 EFT 015486 CONSOLIDATED ELECTRICAL D 68.02 333140 01/11/2023 EFT 000662 THE COUNSELING TEAM INTER 950.00 333141 01/11/2023 EFT 029743 COUNTS UNLIMITED, INC. 280.00 333142 01/11/2023 EFT 000677 CRAFCO, INC. 879.15
333143 01/11/2023 EFT 010282 DELTA DENTAL INSURANCE CO 3,345.38 333144 01/11/2023 EFT 009492 DELTA DENTAL OF CALIFORNI 33,027.46 333145 01/11/2023 EFT 022345 DIAMOND ENVIRONMENTAL SER 582.19 333146 01/11/2023 EFT 005295 DOKKEN ENGINEERING 12,280.00 333147 01/11/2023 EFT 000875 ENDURA STEEL, INC. 2,343.52 333148 01/11/2023 EFT 014106 ENGINEERING RESOURCES OF 10,350.80 333149 01/11/2023 EFT 017560 FERGUSON ENTERPRISES, LLC 192.53 333150 01/11/2023 EFT 017560 FERGUSON WATERWORKS 13,521.29 333151 01/11/2023 EFT 016263 AFECO, INC 376.05
333152 01/11/2023 EFT 011206 FLYERS ENERGY LLC 646.00
333153 01/11/2023 EFT 016134 FRONTIER COMMUNICATIONS C 9,740.62 333154 01/11/2023 EFT 001740 G.A. OSBORNE PIPE-SUPPLY 1,683.53 333155 01/11/2023 EFT 001063 GOODYEAR TIRE & RUBBER CO 1,354.14 333156 01/11/2023 EFT 016385 GRAFXOLUTION INC 261.00
333157 01/11/2023 EFT 001076 GRAINGER 590.52
333159 01/11/2023 EFT 006269 GREEN, DE BORTNOWSKY, LLP 13,000.00 333160 01/11/2023 EFT 007081 SGM, INC. 49,983.50
333161 01/11/2023 EFT 018938 HARRIS & ASSOCIATES, INC. 4,047.25 333164 01/11/2023 EFT 017752 HATTRIX INC. 1,310.94
333165 01/11/2023 EFT 002809 HIGH DESERT HOMELESS SERV 95,057.99 333166 01/11/2023 EFT 018048 INDUSTRIAL CLERICAL RECRU 2,976.52 333167 01/11/2023 EFT 001282 INLAND KENWORTH, INC. 1,858.77 333168 01/11/2023 EFT 004986 LESLIE'S SWIMMING POOL SU 189.81 333169 01/11/2023 EFT 001548 MCMASTER-CARR SUPPLY CO. 1,008.28 333170 01/11/2023 EFT 015804 MISSION AMBULANCE, INC. 106,900.00 333171 01/11/2023 EFT 001592 MOBILE OCCUPATIONAL SERVI 45.00 333172 01/11/2023 EFT 019967 MOJAVE AUTO COLLISION 2,491.60 333173 01/11/2023 EFT 001599 MOJAVE DESERT AQMD 1,116.04 333174 01/11/2023 EFT 016376 SHEPARD, MARSHALL 14,567.00 333175 01/11/2023 EFT 009644 NORTHERN SAFETY COMPANY I 473.63 333176 01/11/2023 EFT 003523 ODYSSEY POWER CORPORATION 325.77 333177 01/11/2023 EFT 001886 PRUDENTIAL OVERALL SUPPLY 1,919.55 333178 01/11/2023 EFT 011150 PSA PRINTING & MAILING SE 823.04 333179 01/11/2023 EFT 000319 R&R INDUSTRIES, INC. 2,306.61 333180 01/11/2023 EFT 024930 REFRIGERATION SUPPLIES DI 893.43
CITY OF VICTORVILLE
Report generated: 01/19/2023 08:01 Page 2User:
Program ID:
emesa
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
333182 01/11/2023 EFT 012308 ROADPOST USA ,INC. 133.90
333183 01/11/2023 EFT 020842 ALL PURPOSE FIRE EXT. COR 2,274.69 333184 01/11/2023 EFT 015670 SCORPION FIRE PROTECTION, 14,175.00 333185 01/11/2023 EFT 001153 DS SERVICES OF AMERICA, I 529.99 333186 01/11/2023 EFT 010553 SPOK, INC. 12.43
333187 01/11/2023 EFT 021414 CALAMP WIRELESS NETWORKS 460.00 333188 01/11/2023 EFT 019341 MARTIN, ARMANDO JR. 2,000.00 333189 01/11/2023 EFT 017117 TORRES, CARLOS 800.00
333190 01/11/2023 EFT 017269 TOWN & COUNTRY TIRE INC 270.66 333192 01/11/2023 EFT 002790 TREADWELL, KENNETH R. 4,750.00 333193 01/11/2023 EFT 001169 AUTO PARTS DIRECT LLC 565.62 333194 01/11/2023 EFT 002419 UNDERGROUND SERVICE ALERT 898.07 333195 01/11/2023 EFT 014536 UNITED SITE SERVICES OF C 3,949.47 333196 01/11/2023 EFT 013356 VALLEYWIDE NEWSPAPERS LLC 161.00 333197 01/11/2023 EFT 015079 VERIZON WIRELESS SERVICES 2,584.25 333198 01/11/2023 EFT 002481 VICTOR VALLEY ANIMAL PROT 1,120.00 333199 01/11/2023 EFT 002505 VICTORVILLE DISPOSAL, INC 1,022,516.69 333200 01/11/2023 EFT 002498 VICTOR VALLEY WASTEWATER 15,650.65 333201 01/11/2023 EFT 011361 WALTERS WHOLESALE ELECTRI 135.58 333202 01/11/2023 EFT 002554 WAXIE SANITARY SUPPLY 1,627.29 333203 01/11/2023 EFT 010274 HD SUPPLY CONSTRUCTION SU 271.83 333204 01/11/2023 EFT 022033 WOODARD & CURRAN, INC. 504,917.86 333205 01/11/2023 EFT 009637 WSP USA, INC. 3,520.33
333206 01/11/2023 EFT 018845 Z GLOBAL INC. 287,965.10
333207 01/18/2023 EFT 014848 DOMINGUEZ, MIGUEL 1,882.25 333208 01/18/2023 EFT 013920 ADB SAFEGATE AMERICAS LLC 6,952.97 333209 01/18/2023 EFT 000104 DANTIN ENTERPRISES, INC. 1,775.00 333210 01/18/2023 EFT 001646 ALLSTAR FIRE EQUIPMENT 58,943.38 333211 01/18/2023 EFT 007650 BAKER & TAYLOR, INC. 1,320.94 333212 01/18/2023 EFT 000297 BECK OIL, INC. 10,568.15
333213 01/18/2023 EFT 003245 CALIFORNIA DEPARTMENT OF 294.00 333214 01/18/2023 EFT 002720 CALIFORNIA TOOL & WELDING 23.33 333215 01/18/2023 EFT 014820 CAL-STATE AUTO PARTS 253.71 333216 01/18/2023 EFT 016335 CHARTER COMMUNICATION HOL 18,438.53 333217 01/18/2023 EFT 018132 CLINICAL LABORATORY OF SA 4,245.00 333218 01/18/2023 EFT 021022 HOME EC, INC. 507,827.25
333219 01/18/2023 EFT 015486 CONSOLIDATED ELECTRICAL D 1,033.13 333220 01/18/2023 EFT 000743 DELL MARKETING L.P. 5,902.54 333221 01/18/2023 EFT 012505 DESERT ENVIRONMENTAL SERV 205.00 333222 01/18/2023 EFT 022345 DIAMOND ENVIRONMENTAL SER 1,217.55 333223 01/18/2023 EFT 005295 DOKKEN ENGINEERING 10,693.54 333224 01/18/2023 EFT 008049 ENVISIONWARE, INC. 750.00
333225 01/18/2023 EFT 015760 FASTENAL COMPANY 22.03
333226 01/18/2023 EFT 017560 FERGUSON ENTERPRISES, LLC 33.08 333227 01/18/2023 EFT 017560 FERGUSON WATERWORKS 27,804.77 333228 01/18/2023 EFT 016767 KALMIKOV ENTERPRISES, INC 581.40 333229 01/18/2023 EFT 011206 FLYERS ENERGY LLC 22,408.83 333230 01/18/2023 EFT 016134 FRONTIER COMMUNICATIONS C 43.11 333231 01/18/2023 EFT 003960 CENGAGE LEARNING, INC. 704.17 333232 01/18/2023 EFT 001015 GALLS PARENT HOLDINGS, LL 578.64 333233 01/18/2023 EFT 001740 G.A. OSBORNE PIPE-SUPPLY 416.88 333234 01/18/2023 EFT 001063 GOODYEAR TIRE & RUBBER CO 1,360.15
CITY OF VICTORVILLE
Report generated: 01/19/2023 08:01 Page 3User:
Program ID:
emesa
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
333235 01/18/2023 EFT 016317 GREATER HOPE FOUNDATION F 125.00 333236 01/18/2023 EFT 001104 HAAKER EQUIPMENT CO. 971.33 333237 01/18/2023 EFT 018938 HARRIS & ASSOCIATES, INC. 9,193.25 333238 01/18/2023 EFT 000278 HI DESERT ALARM 1,003.52
333239 01/18/2023 EFT 018574 HITACHI ENERGY USA, INC. 47,105.06 333240 01/18/2023 EFT 016773 ID EDGE, INC. 214.00
333241 01/18/2023 EFT 024922 INFOSEND, INC 1,721.31
333242 01/18/2023 EFT 001282 INLAND KENWORTH, INC. 1,963.40 333243 01/18/2023 EFT 022747 KELLEY'S UNDERGROUND CONS 5,241.00 333244 01/18/2023 EFT 000226 LARRY WALKER ASSOCIATES, 14,295.75 333245 01/18/2023 EFT 001599 MOJAVE DESERT AQMD 2,991.44 333246 01/18/2023 EFT 001603 MOJAVE WATER AGENCY 34,200.00 333247 01/18/2023 EFT 001627 MUNICIPAL MAINTENANCE EQU 782.21 333248 01/18/2023 EFT 008568 NBS GOVERNMENT FINANCE GR 8,500.00 333249 01/18/2023 EFT 028462 NINYO & MOORE GEOTECHNICA 7,652.14 333250 01/18/2023 EFT 014835 OMNIS INCORPORATED 10,567.00 333251 01/18/2023 EFT 015663 PADILLA & ASSOCIATES, INC 2,735.00 333252 01/18/2023 EFT 025260 PENWORTHY COMPANY, THE 811.62 333253 01/18/2023 EFT 022232 PERMA-BOUND BOOKS 1,094.32 333254 01/18/2023 EFT 013165 PETE'S ROAD SERVICE 1,324.00 333255 01/18/2023 EFT 001886 PRUDENTIAL OVERALL SUPPLY 753.19 333256 01/18/2023 EFT 018886 R.D. OFFUTT COMPANY 2,037.89 333257 01/18/2023 EFT 020678 UNITED SAFETY SERVICES 298.50 333258 01/18/2023 EFT 016328 RIVERSIDE CONSTRUCTION CO 227,521.03 333259 01/18/2023 EFT 002017 SAFEWAY SIGN CO. 4,162.95
333260 01/18/2023 EFT 002063 SBC FIRE DEPARTMENT 1,820.00 333261 01/18/2023 EFT 017661 SCHARDIJN, LISA 351.00
333262 01/18/2023 EFT 005712 SOUTHERN COUNTIES OIL CO. 21,702.85 333263 01/18/2023 EFT 017052 SUNRISE ENGINEERING, INC. 569.70 333264 01/18/2023 EFT 021340 MACKENZIE ENTERPRISES 6,939.18 333266 01/18/2023 EFT 018368 TARGETSOLUTIONS LEARNING, 504.33 333267 01/18/2023 EFT 017269 TOWN & COUNTRY TIRE INC 178.71 333268 01/18/2023 EFT 028349 TYLER TECHNOLOGIES, INC. 3,237.50 333269 01/18/2023 EFT 003089 UNITED RENTALS, INC. 4,170.56 333270 01/18/2023 EFT 000095 UNIVAR SOLUTIONS USA INC. 17,917.77 333271 01/18/2023 EFT 015004 U.S. DEPARTMENT OF ENERGY 6,636.77 333272 01/18/2023 EFT 015079 VERIZON WIRELESS SERVICES 24,183.27 333273 01/18/2023 EFT 008430 CALMAT COMPANY 1,068.88
333274 01/18/2023 EFT 002554 WAXIE SANITARY SUPPLY 1,855.35 333275 01/18/2023 EFT 007786 WILLIAMS, MONIQUE 1,476.00 333276 01/18/2023 EFT 022033 WOODARD & CURRAN, INC. 1,403.75 333278 01/18/2023 EFT 018845 Z GLOBAL INC. 311.79
788646 01/11/2023 PRINTED 016204 4LEAF, INC. 28,495.50
788647 01/11/2023 PRINTED 999973 AIKON INVESTMENT CO. LLC 1,025.00 788648 01/11/2023 PRINTED 018004 AFLAC PREMIUM HOLDING 1,816.78 788649 01/11/2023 PRINTED 021682 ALCAREZ,RUDY 1,200.00
788650 01/11/2023 PRINTED 014878 ALLTECH INDUSTRIES, INC 34,210.80 788651 01/11/2023 PRINTED 003042 APPLE VALLEY COMMUNICATIO 795.00 788652 01/11/2023 PRINTED 017968 AVCOM SERVICES, INC. 3,191.00 788653 01/11/2023 PRINTED 999974 BE RESIDENTIAL LLC 1,150.00 788654 01/11/2023 PRINTED 000290 BATTERY MART OF APPLE VAL 993.05 788655 01/11/2023 PRINTED 019571 MJ AUTO GLASS INC. 960.53
CITY OF VICTORVILLE
Report generated: 01/19/2023 08:01 Page 4User:
Program ID:
emesa
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
788656 01/11/2023 PRINTED 010670 BLUE SHIELD OF CALIFORNIA 10,197.08 788657 01/11/2023 PRINTED 021658 BUCHALTER, A PROFESSIONAL 20,698.20 788658 01/11/2023 PRINTED 000380 BURRTEC WASTE INDUSTRIES 2,398.55 788659 01/11/2023 PRINTED 000380 BURRTEC WASTE INDUSTRIES 37,405.83 788660 01/11/2023 PRINTED 000380 BURRTEC WASTE INDUSTRIES 934.61 788661 01/11/2023 PRINTED 016222 CACEO 200.00
788662 01/11/2023 PRINTED 008544 CALIFORNIA NEVADA SECTION 100.00 788663 01/11/2023 PRINTED 020755 MIKE CAPOSIO BUICK GMC, L 136.35 788664 01/11/2023 PRINTED 001162 HI-DESERT COMMUNICATIONS 380.00 788665 01/11/2023 PRINTED 000618 CDW GOVERNMENT, INC. 1,693.85 788666 01/11/2023 PRINTED 000155 CENTURY LINK 447.73
788667 01/11/2023 PRINTED 021683 CHAMBERLAND, ROLAND 50.00 788668 01/11/2023 PRINTED 021413 CDI ENTERPRISES LLC. 85,689.57 788669 01/11/2023 PRINTED 019955 CLIFTONLARSONALLEN LLP 44,150.00 788670 01/11/2023 PRINTED 011084 COMMERCIAL TRANSPORTATION 11,519.68 788671 01/11/2023 PRINTED 021660 COMPUTERIZED EMBROIDERY C 43.50 788672 01/11/2023 PRINTED 014721 CORE & MAIN LP 11,883.94 788673 01/11/2023 PRINTED 999976 DEJEAN, BARBARA 250.00 788674 01/11/2023 PRINTED 006348 DAILY JOURNAL CORPORATION 577.08 788675 01/11/2023 PRINTED 010687 HONG, JAMES 1,253.13
788676 01/11/2023 PRINTED 018020 DIXON PEST CONTROL, INC. 932.00 788677 01/11/2023 PRINTED 021662 ESO SOLUTIONS, INC. 5,383.00 788678 01/11/2023 PRINTED 021497 EXELOO CORPORATION 129,876.00 788679 01/11/2023 PRINTED 002607 FAUST MEDIA SERVICES, LLC 1,223.44 788680 01/11/2023 PRINTED 011697 FEDEX FREIGHT WEST, INC. 77.00 788681 01/11/2023 PRINTED 004581 FLEETPRIDE 629.02
788682 01/11/2023 PRINTED 021572 FLORES, JOVANNY 1,600.50 788683 01/11/2023 PRINTED 021500 FORMSTACK ACQUISITION, CO 3,929.93 788684 01/11/2023 PRINTED 000975 FRANKLIN TRUCK PARTS, INC 199.00 788685 01/11/2023 PRINTED 999979 GONZALEZ, ANA 120.00
788686 01/11/2023 PRINTED 021440 GATEHOUSE MEDIA CALIFORNI 1,826.35 788687 01/11/2023 PRINTED 001074 GRAHAM EQUIPMENT 139.20 788688 01/11/2023 PRINTED 999980 HAVENSTRITE, LINDA 120.00 788689 01/11/2023 PRINTED 017053 HIGH DESERT LOCK & SAFE, 36.62 788690 01/11/2023 PRINTED 001155 HESPERIA HOSE SUPPLY 70.96 788691 01/11/2023 PRINTED 021481 VELASCO,JOSEPH 4,470.00 788692 01/11/2023 PRINTED 004021 HIGH DESERT LASER GRAPHIC 206.63 788693 01/11/2023 PRINTED 021432 HUNTINGTON FILMS & MARKET 7,000.00 788694 01/11/2023 PRINTED 001285 INLAND WATER WORKS SUPPLY 510.53 788695 01/11/2023 PRINTED 004807 KONE, INC. 350.00
788696 01/11/2023 PRINTED 018875 KONICA MINOLTA BUSINESS S 1,093.62 788697 01/11/2023 PRINTED 018875 KONICA MINOLTA BUSINESS S 1,992.14 788698 01/11/2023 PRINTED 007233 KOVATCH MOBILE EQUIPMENT 314.70 788699 01/11/2023 PRINTED 999984 LUNA TOPAZ LP 3,975.00 788700 01/11/2023 PRINTED 017076 LANPHAR, JAMES 800.00
788701 01/11/2023 PRINTED 015232 LOGICALIS, INC 145,513.59 788702 01/11/2023 PRINTED 017054 LOOPNET, INC. 652.00
788703 01/11/2023 PRINTED 027847 MOJAVE DESERT & MTN. WAST 39,158.06 788704 01/11/2023 PRINTED 001637 MYERS TIRE SUPPLY 92.13 788705 01/11/2023 PRINTED 021195 MYTHICS, INC. 1,022.39 788706 01/11/2023 PRINTED 001648 NAPA AUTO PARTS 4,007.59 788707 01/11/2023 PRINTED 017475 NETA NETWORKS, INC. 429.98
CITY OF VICTORVILLE
Report generated: 01/19/2023 08:01 Page 5User:
Program ID:
emesa
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
788708 01/11/2023 PRINTED 020815 NEXTERA ENERGY CAPITAL HO 579,640.00 788709 01/11/2023 PRINTED 021150 ODP BUSINESS SOLUTIONS, L 123.08 788710 01/11/2023 PRINTED 017105 ORTIZ, TIMOTHY 100.00
788711 01/11/2023 PRINTED 999988 PACIFIC SUMMIT-SUMMERFIEL 3,700.00 788712 01/11/2023 PRINTED 999988 PENDEGRAFT VICTORVILLE 6,500.00 788713 01/11/2023 PRINTED 999988 PENDEGRAFT VICTORVILLE 6,750.00 788714 01/11/2023 PRINTED 018519 PARSONS TRANSPORTATION GR 73,409.43 788715 01/11/2023 PRINTED 021198 PRISTINE UNIFORMS 682.00 788716 01/11/2023 PRINTED 002618 PUBLIC WORKS SAFTEY SUPPL 69.38 788717 01/11/2023 PRINTED 021685 RACOWSCHI, WILLIAM 618.05 788718 01/11/2023 PRINTED 017946 RAILWORKS TRACK SERVICE, 1,830.53 788719 01/11/2023 PRINTED 010689 RED HELMET TRAINING 400.00 788720 01/11/2023 PRINTED 003857 ROADLINE PRODUCTS INC. 204.45 788721 01/11/2023 PRINTED 002746 ROTO ROOTER PLUMBERS 10,851.95 788722 01/11/2023 PRINTED 020939 RSG, INC. 7,020.00
788723 01/11/2023 PRINTED 020899 RUSH TRUCK CENTERS OF CAL 549.53 788724 01/11/2023 PRINTED 002037 SAN BERNARDINO COUNTY 2,360.00 788725 01/11/2023 PRINTED 002037 SAN BERNARDINO COUNTY FIR 60.00 788726 01/11/2023 PRINTED 002071 SAN BERNARDINO CO SOLID W 278,322.90 788727 01/11/2023 PRINTED 017535 SCHNEIDER ELECTRIC SYSTEM 5,006.85 788728 01/11/2023 PRINTED 019447 R&R B INC. 2,020.03
788729 01/11/2023 PRINTED 018884 FIRST STREET PARENT, INC. 50.82 788730 01/11/2023 PRINTED 016345 NNN INVESTMENTS INC. 363.25 788731 01/11/2023 PRINTED 002188 SOUTHERN CALIFORNIA EDISO 189,750.00 788732 01/11/2023 PRINTED 020284 SOCAL PPE, LLC 271.88
788733 01/11/2023 PRINTED 011303 SPORTSENGINE, INC. 389.50 788734 01/11/2023 PRINTED 002236 STATE WATER RESOURCES CON 43,102.00 788735 01/11/2023 PRINTED 002236 STATE WATER RESOURCES CON 60.00 788736 01/11/2023 PRINTED 004812 STERICYCLE INC. 1,173.30 788737 01/11/2023 PRINTED 002269 SUNLAND FORD 236.23
788738 01/11/2023 PRINTED 002204 SOUTHWEST GAS CORPORATION 430,770.68 788739 01/11/2023 PRINTED 016520 UNITED STATES CUSTOMS AND 52,530.56 788740 01/11/2023 PRINTED 004009 THE VAN DYKE CORPORATION 528,658.72 788741 01/11/2023 PRINTED 023108 VCA MESA ANIMAL HOSPITAL 1,856.66 788742 01/11/2023 PRINTED 002475 VICTOR ELEMENTARY SCHOOL 624.00 788743 01/11/2023 PRINTED 005896 VICTOR VALLEY HAND CAR WA 17.00 788744 01/11/2023 PRINTED 029510 WEST END MATERIAL SUPPLY 361.76 788745 01/11/2023 PRINTED 000694 ZENNER PERFORMANCE METERS 4,913.16 788746 01/11/2023 PRINTED 029101 ACUITY SPECIALTY PRODUCTS 231.45 788747 01/11/2023 PRINTED 000144 AMERICAN GREEN DEVELOPERS 12,813.00 788748 01/11/2023 PRINTED 003047 GRAVES & KING LLP 1,009.14 788749 01/11/2023 PRINTED 025408 THE HARTFORD - PRIORITY A 1,452.94 788750 01/11/2023 PRINTED 025408 THE HARTFORD - PRIORITY A 45,882.04 788751 01/11/2023 PRINTED 020979 TR DESIGN GROUP, INC. 8,073.70 788752 01/11/2023 PRINTED 009133 AFRA INVESTMENTS GROUP IN 24.36 788753 01/11/2023 PRINTED 021725 ANGUIANO, MARIA 93.30
788754 01/11/2023 PRINTED 021718 ARELLANO, CHRISTINA S. 72.39 788755 01/11/2023 PRINTED 021719 AVALOS, JOSE C 88.34
788756 01/11/2023 PRINTED 021157 AVILA, MATTHEW 31.97
788757 01/11/2023 PRINTED 021711 BANKS, DANIELLE M. 14.32 788758 01/11/2023 PRINTED 021708 BRADSHAW, ANDRE A 10.24 788759 01/11/2023 PRINTED 021696 BRAVO, MARIA D 134.63
CITY OF VICTORVILLE
Report generated: 01/19/2023 08:01 Page 6User:
Program ID:
emesa
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
788760 01/11/2023 PRINTED 011794 BRECKENRIDGE PROPERTY FUN 87.11 788761 01/11/2023 PRINTED 021702 CHAFFIN, MARY 145.92
788762 01/11/2023 PRINTED 021715 CLEAR CHOICE ESTATES,LLC 15.34 788763 01/11/2023 PRINTED 021731 CORINTHIAN TITLE CO 329.36 788764 01/11/2023 PRINTED 021712 EFG INVESTMENTS LLC 57.00 788765 01/11/2023 PRINTED 021694 FIRST A & A CAPITAL LLC 58.98 788766 01/11/2023 PRINTED 021732 FIRST AMERICAN TITLE CO 224.19 788767 01/11/2023 PRINTED 021720 FOSTER, SHERI NOLAN 24.30 788768 01/11/2023 PRINTED 009619 GRUNDMEYER, TONYA 27.04 788769 01/11/2023 PRINTED 021700 HAMBLIN, BERTA L 279.29 788770 01/11/2023 PRINTED 021699 HSU, SUZANNE 17.43
788771 01/11/2023 PRINTED 019404 HUANG, SUFEN 9.64
788772 01/11/2023 PRINTED 011711 BENTOW, JEFF 113.81
788773 01/11/2023 PRINTED 021706 KANG, JUNG TAK 99.82
788774 01/11/2023 PRINTED 021701 KETTINGOLIVIER, RICHARD 54.81 788775 01/11/2023 PRINTED 018477 KEYS, STACEY L 36.05
788776 01/11/2023 PRINTED 021727 LAWYERS TITLE CO 660.60 788777 01/11/2023 PRINTED 019894 LEE, AELI M. 41.97
788778 01/11/2023 PRINTED 011020 LOZANO, LUZ M 14.32
788779 01/11/2023 PRINTED 021698 MAD CAPITAL, LLC 59.42 788780 01/11/2023 PRINTED 014867 MEEKS, BRIAN 48.05
788781 01/11/2023 PRINTED 021722 MENENDEZ, LUIS EDUARDO 570.88 788782 01/11/2023 PRINTED 021724 MESA PROPERTY MANAGEMENT 216.80 788783 01/11/2023 PRINTED 021717 MONCAYO FAMILY TRUST 106.60 788784 01/11/2023 PRINTED 021705 MONICO, ALICIA M. 10.20 788785 01/11/2023 PRINTED 021726 MUPAS, JOVITA 120.00
788786 01/11/2023 PRINTED 021729 ORANGE COAST TITLE CO 133.74 788787 01/11/2023 PRINTED 021695 PAN, JIN 36.04
788788 01/11/2023 PRINTED 007814 PARADISE FAMILY REALTY 77.40 788789 01/11/2023 PRINTED 021709 PRAKASH, DON 27.67
788790 01/11/2023 PRINTED 015394 REAL ESTATE UNLIMITED 42.91 788791 01/11/2023 PRINTED 021714 RODRIGUEZ, TANIA 96.58 788792 01/11/2023 PRINTED 002865 SECRETARY OF HOUSING & UR 42.93 788793 01/11/2023 PRINTED 021697 STONE, ASHTON S. 78.79 788794 01/11/2023 PRINTED 020620 THE COMMUNITY BUILDING GR 10.90 788795 01/11/2023 PRINTED 021728 TICOR TITLE CO 74.25
788796 01/11/2023 PRINTED 021656 TITLE CONNECT INC 105.28 788797 01/11/2023 PRINTED 002491 TRAN, KIM H 46.43
788798 01/11/2023 PRINTED 021723 TRUST PROPERTIES USA 22.13 788799 01/11/2023 PRINTED 021707 VARGAS, LUPITA 75.62
788800 01/11/2023 PRINTED 004541 VARGAZ, FERNANDO A. 21.68 788801 01/11/2023 PRINTED 021730 WFG NATIONAL TITLE CO OF 50.32 788802 01/11/2023 PRINTED 021704 WILSON, JEFFREY S 108.74 788803 01/11/2023 PRINTED 021721 WING HON YEUNG AND MAN NI 46.43 788804 01/11/2023 PRINTED 009155 WU, JONG 21.30
788805 01/11/2023 PRINTED 021703 YARBROUGH FAMILY TRUST 10 96.28 788806 01/11/2023 PRINTED 021716 YI, MICHELLE 41.33
788807 01/11/2023 PRINTED 021686 ZAMORA, DELIA R 348.00 788808 01/18/2023 PRINTED 002336 3M 1,189.87
788809 01/18/2023 PRINTED 013312 A & B HITCHES AND MUFFLER 73.57 788810 01/18/2023 PRINTED 015507 UNIVERSAL PROTECTION SERV 25,449.57 788811 01/18/2023 PRINTED 014878 ALLTECH INDUSTRIES, INC 1,922.96
CITY OF VICTORVILLE
Report generated: 01/19/2023 08:01 Page 7User:
Program ID:
emesa
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
788812 01/18/2023 PRINTED 017044 ALTMAN, MATTHEW 300.00 788813 01/18/2023 PRINTED 006125 ANIXTER, INC. 329.54
788814 01/18/2023 PRINTED 003042 APPLE VALLEY COMMUNICATIO 1,600.00 788815 01/18/2023 PRINTED 000290 BATTERY MART OF APPLE VAL 339.88 788816 01/18/2023 PRINTED 021658 BUCHALTER, A PROFESSIONAL 4,191.50 788817 01/18/2023 PRINTED 000380 BURRTEC WASTE INDUSTRIES 966.38 788818 01/18/2023 PRINTED 000380 BURRTEC WASTE INDUSTRIES 3,434.32 788819 01/18/2023 PRINTED 016222 CACEO 1,000.00
788820 01/18/2023 PRINTED 000787 DEPARTMENT OF CONSERVATIO 7,039.27 788821 01/18/2023 PRINTED 020755 MIKE CAPOSIO BUICK GMC, L 80.83 788822 01/18/2023 PRINTED 001162 HI-DESERT COMMUNICATIONS 380.00 788823 01/18/2023 PRINTED 000618 CDW GOVERNMENT, INC. 801.54 788824 01/18/2023 PRINTED 021252 CITY ELECTRIC SUPPLY 124,518.75 788825 01/18/2023 PRINTED 021254 CODING MINDS, INC. 154.00 788826 01/18/2023 PRINTED 009898 CWEA 202.00
788827 01/18/2023 PRINTED 006348 DAILY JOURNAL CORPORATION 286.25 788828 01/18/2023 PRINTED 000764 DESERT TRUCK SUPPLY 181.25 788829 01/18/2023 PRINTED 019925 DOCU SIGN, INC. 12,605.22 788830 01/18/2023 PRINTED 021692 DUMAS, BRANDON 200.00
788831 01/18/2023 PRINTED 017068 FELGAR, DARRYL 88.09
788832 01/18/2023 PRINTED 015258 FITZGERALD-GUTIERREZ, JEN 120.00 788833 01/18/2023 PRINTED 000975 FRANKLIN TRUCK PARTS, INC 70.89 788834 01/18/2023 PRINTED 017053 HIGH DESERT LOCK & SAFE, 37.67 788835 01/18/2023 PRINTED 001155 HESPERIA HOSE SUPPLY 114.83 788836 01/18/2023 PRINTED 014207 JOHNSON, TYSON A. 52.50 788837 01/18/2023 PRINTED 021680 LANE, CHRYSTAL 17.24
788838 01/18/2023 PRINTED 015232 LOGICALIS, INC 2,090.00 788839 01/18/2023 PRINTED 000361 MARK BROWN & ASSOCIATES, 85.00 788840 01/18/2023 PRINTED 021255 HARRIS, NAKENDRA 120.00 788841 01/18/2023 PRINTED 016208 MOTOROLA SOLUTIONS, INC 3,543.73 788842 01/18/2023 PRINTED 021195 MYTHICS, INC. 771.19
788843 01/18/2023 PRINTED 001648 NAPA AUTO PARTS 4,647.10 788844 01/18/2023 PRINTED 021023 NEWMAN - HARRISON, SUSAN 250.00 788845 01/18/2023 PRINTED 021150 ODP BUSINESS SOLUTIONS, L 565.49 788846 01/18/2023 PRINTED 014304 ONE SOURCE DISTRIBUTORS, 188.57 788847 01/18/2023 PRINTED 018455 OWENBY, MATTHEW PAUL 144.00 788848 01/18/2023 PRINTED 020885 CAMACHO, ERNEST M. 157,299.58 788849 01/18/2023 PRINTED 009123 PATTON SALES CORP. 648.82 788850 01/18/2023 PRINTED 016198 RETAIL MARKETING SERVICES 640.00 788851 01/18/2023 PRINTED 008756 RICHARD HEATH & ASSOCIATE 1,540.00 788852 01/18/2023 PRINTED 003150 ROBERTSON'S 688.00
788853 01/18/2023 PRINTED 002746 ROTO ROOTER PLUMBERS 2,748.75 788854 01/18/2023 PRINTED 002071 SAN BERNARDINO CO SOLID W 3,433.84 788855 01/18/2023 PRINTED 018967 SESAC RIGHTS MANAGEMENT, 2,581.55 788856 01/18/2023 PRINTED 016345 NNN INVESTMENTS INC. 49.75 788857 01/18/2023 PRINTED 010861 SNAP-ON INCORPORATED 805.84 788858 01/18/2023 PRINTED 002188 SOUTHERN CALIFORNIA EDISO 197,191.51 788859 01/18/2023 PRINTED 024609 STAPLES BUSINESS ADVANTAG 322.66 788860 01/18/2023 PRINTED 002704 SUN BADGE CO. 1,200.55 788861 01/18/2023 PRINTED 002269 SUNLAND FORD 383.35
788862 01/18/2023 PRINTED 002298 SYSTEMS & METHODS, INC. 2,115.93 788863 01/18/2023 PRINTED 025961 WEST PUBLISHING CORP 573.55
CITY OF VICTORVILLE
Report generated: 01/19/2023 08:01 Page 8User:
Program ID:
emesa
apchkrcn
CHECK # CHECK DATE TYPE VENDOR NAME UNCLEARED CLEARED BATCH CLEAR DATE
AP CHECK RECONCILIATION REGISTER
FOR CASH ACCOUNT: 000 11100 FOR: Uncleared
788864 01/18/2023 PRINTED 021687 TITANS COMPLIANCE TESTING 1,850.00 788865 01/18/2023 PRINTED 999995 WCS PERMITS 150E. 150 486.28 788866 01/18/2023 PRINTED 008100 SWARCO MCCAIN, INC. 3,313.83 788867 01/18/2023 PRINTED 016921 ZENCITY TECHNOLOGIES US I 36,000.00 368 CHECKS CASH ACCOUNT TOTAL 7,136,165.38 .00
Item Number: 4
City Council / Board of Directors
Consent Calendar
Meeting of: February 7, 2023
Submitted By:
John Mendiola, Finance Director / City Treasurer
Subject:
Payroll Warrant List
Recommendation:
That the City Council and Board of Directors ratify Payroll Demand Schedule No. 6B for Payroll Period December 09, 2022, through December 23, 2022, in the amount of $1,883,812.79 covering Check Nos. 33203 through 33216, including Vendor checks.
Please note employee Check No. 33207 has a live Check and an EFT Advice. Also included are Advice Nos. 295654 through 296132, per adopted budget for Fiscal Year 2022-2023 (period covering July 1, 2022, through June 30, 2023).
Fiscal Impact:
A total fiscal impact of $1,883,812.79 is authorized with this action. The attached report details the payments by check numbers.
Discussion:
I hereby certify that the claims or demands covered by the attached list of warrants have been audited as to the accuracy and availability of funds for payment thereof and that said claims or demands are accurate and the funds are available for payment thereof.
Attachments: A. Payroll Report PPE 122322
Attachment A
Payroll Report PPE 122322
Total Net
$503.05
$505.67
$136.57
$136.57
$2,035.14
$482.62
$48.83
$112.68
$4,781.64
$50.00
$75.00
$688.18
$100.00
$422.31
10,078.26
33214 1146 12/30/2022
33215 1182 12/30/2022
33216 13491 12/30/2022
Checks Total
33208 3717 12/30/2022
33209 3665 12/30/2022
33210 3718 12/30/2022
33211 3720 12/30/2022
33212 787 12/30/2022
33213 1145 12/30/2022
Check Number Employee ID Check Date
33203 3466 12/30/2022
33204 3551 12/30/2022
33205 3554 12/30/2022
33206 3556 12/30/2022
33207 2705 12/30/2022
Checks
City of Victorville
Payroll Period Beginning: December 09, 2022 through December 23, 2022 City Council Payroll Report
City of Victorville Council Payroll Report Page 1 of 1 01/05/2023 Check Number Employee ID Check Date Total Net
33207 2705 12/30/2022 $2,000.00
295654 3445 12/22/2022 $1,657.38
295656 3608 12/30/2022 $2,715.58
295657 1099 12/30/2022 $527.74
295658 3495 12/30/2022 $2,654.59
295659 3597 12/30/2022 $3,369.59
295660 3243 12/30/2022 $3,717.13
295661 2115 12/30/2022 $5,229.63
295662 3142 12/30/2022 $1,788.73
295663 3297 12/30/2022 $502.86
295664 3458 12/30/2022 $505.86
295665 3229 12/30/2022 $4,901.43
295666 3283 12/30/2022 $2,611.73
295667 1064 12/30/2022 $7,357.97
295668 3467 12/30/2022 $2,255.28
295669 3573 12/30/2022 $1,563.58
295670 1706 12/30/2022 $4,408.21
295671 2395 12/30/2022 $4,427.05
295672 3700 12/30/2022 $1,673.72
295673 3625 12/30/2022 $1,673.72
295674 3684 12/30/2022 $2,094.79
295675 2624 12/30/2022 $2,829.08
295676 3043 12/30/2022 $2,011.57
295677 3031 12/30/2022 $3,081.45
295678 1748 12/30/2022 $2,854.45
295679 2361 12/30/2022 $2,307.33
295680 3328 12/30/2022 $2,443.88
295681 3638 12/30/2022 $3,488.53
295682 3561 12/30/2022 $2,317.70
295683 1903 12/30/2022 $1,966.26
295684 3616 12/30/2022 $2,275.72
295685 3630 12/30/2022 $2,019.31
295686 3527 12/30/2022 $2,152.78
295687 2682 12/30/2022 $2,321.47
295688 2627 12/30/2022 $2,006.15
295689 2366 12/30/2022 $2,028.70
295690 3643 12/30/2022 $3,424.94
295691 2594 12/30/2022 $3,077.62
295692 3516 12/30/2022 $2,497.54
295693 3695 12/30/2022 $1,940.13
295694 2093 12/30/2022 $1,775.86
295695 3697 12/30/2022 $5,054.28
295696 1973 12/30/2022 $3,393.61
295697 2019 12/30/2022 $3,007.62
295698 3494 12/30/2022 $2,395.28
295699 2233 12/30/2022 $2,751.61
Advices
City of Victorville Council Payroll Report Page 1 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
295700 2606 12/30/2022 $2,307.33
295701 3660 12/30/2022 $1,873.99
295702 3046 12/30/2022 $2,169.31
295703 1635 12/30/2022 $4,953.19
295704 3653 12/30/2022 $2,313.28
295705 3327 12/30/2022 $2,221.20
295706 3624 12/30/2022 $1,890.91
295707 3009 12/30/2022 $3,208.87
295708 2618 12/30/2022 $1,769.71
295709 2619 12/30/2022 $2,320.06
295710 2603 12/30/2022 $1,880.62
295711 2491 12/30/2022 $2,646.95
295712 2235 12/30/2022 $3,431.14
295713 2300 12/30/2022 $3,936.30
295714 2655 12/30/2022 $2,259.71
295715 2685 12/30/2022 $1,918.88
295716 3521 12/30/2022 $2,244.79
295717 3528 12/30/2022 $1,954.49
295718 3045 12/30/2022 $2,282.78
295719 3499 12/30/2022 $2,281.51
295720 3362 12/30/2022 $2,206.89
295721 2297 12/30/2022 $2,174.28
295722 2232 12/30/2022 $2,991.97
295723 1957 12/30/2022 $2,615.81
295724 3290 12/30/2022 $2,247.12
295725 3085 12/30/2022 $2,180.26
295726 3246 12/30/2022 $3,047.49
295727 2042 12/30/2022 $4,931.46
295728 3714 12/30/2022 $1,639.61
295729 2102 12/30/2022 $2,662.06
295730 2032 12/30/2022 $3,597.64
295731 3615 12/30/2022 $2,468.05
295732 2323 12/30/2022 $3,342.02
295733 1767 12/30/2022 $2,931.73
295734 3508 12/30/2022 $2,369.53
295735 3682 12/30/2022 $3,235.50
295736 2225 12/30/2022 $4,139.22
295737 3544 12/30/2022 $1,979.12
295738 3221 12/30/2022 $3,253.67
295739 1855 12/30/2022 $136.57
295740 3627 12/30/2022 $1,933.57
295741 1533 12/30/2022 $2,554.53
295742 2833 12/30/2022 $2,153.40
295743 2211 12/30/2022 $4,643.93
295744 3497 12/30/2022 $1,553.20
295745 1426 12/30/2022 $1,065.79
295746 3105 12/30/2022 $1,825.87
295747 3703 12/30/2022 $1,959.36
295748 2254 12/30/2022 $3,027.37
295749 3618 12/30/2022 $1,985.88
City of Victorville Council Payroll Report Page 2 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
295750 3482 12/30/2022 $2,240.73
295751 3354 12/30/2022 $3,284.92
295752 3011 12/30/2022 $1,953.57
295753 3623 12/30/2022 $1,126.78
295754 3295 12/30/2022 $1,788.75
295755 3184 12/30/2022 $4,403.15
295756 3400 12/30/2022 $2,202.95
295757 3547 12/30/2022 $1,191.04
295758 3673 12/30/2022 $1,191.04
295759 3288 12/30/2022 $1,584.99
295760 3702 12/30/2022 $2,429.57
295761 2742 12/30/2022 $2,965.23
295762 3089 12/30/2022 $2,894.92
295763 3641 12/30/2022 $1,563.58
295764 2379 12/30/2022 $2,553.09
295765 3672 12/30/2022 $1,191.04
295766 3634 12/30/2022 $2,884.98
295767 2711 12/30/2022 $2,133.34
295768 3639 12/30/2022 $1,430.35
295769 3190 12/30/2022 $2,803.38
295770 2249 12/30/2022 $4,762.20
295771 3650 12/30/2022 $1,914.88
295772 3393 12/30/2022 $1,678.21
295773 3250 12/30/2022 $1,553.20
295774 3491 12/30/2022 $1,151.35
295775 3548 12/30/2022 $867.61
295776 3511 12/30/2022 $1,902.11
295777 3581 12/30/2022 $2,139.04
295778 3396 12/30/2022 $1,927.33
295779 3663 12/30/2022 $1,940.13
295780 3541 12/30/2022 $2,683.98
295781 2499 12/30/2022 $3,249.04
295782 3379 12/30/2022 $2,465.64
295783 3694 12/30/2022 $2,264.86
295784 2105 12/30/2022 $4,839.02
295785 3474 12/30/2022 $1,867.36
295786 2515 12/30/2022 $2,491.17
295787 3636 12/30/2022 $2,195.19
295788 2679 12/30/2022 $3,688.59
295789 3490 12/30/2022 $2,515.08
295790 3475 12/30/2022 $2,758.67
295791 2181 12/30/2022 $2,346.54
295792 3353 12/30/2022 $2,704.50
295793 3542 12/30/2022 $2,459.08
295794 1955 12/30/2022 $2,064.55
295795 1632 12/30/2022 $2,474.83
295796 3692 12/30/2022 $2,483.55
295797 3147 12/30/2022 $2,742.77
295798 3148 12/30/2022 $2,895.23
295799 3195 12/30/2022 $2,153.34
City of Victorville Council Payroll Report Page 3 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
295800 3602 12/30/2022 $3,528.00
295801 1970 12/30/2022 $2,507.77
295802 1520 12/30/2022 $2,578.40
295803 2605 12/30/2022 $2,040.20
295804 3505 12/30/2022 $4,919.59
295805 2540 12/30/2022 $3,333.99
295806 3522 12/30/2022 $2,291.47
295807 2377 12/30/2022 $2,637.54
295808 1079 12/30/2022 $3,026.56
295809 2312 12/30/2022 $2,861.60
295810 3510 12/30/2022 $1,867.09
295811 3637 12/30/2022 $2,571.59
295812 1901 12/30/2022 $5,953.44
295813 3628 12/30/2022 $2,346.55
295814 3068 12/30/2022 $2,162.73
295815 3633 12/30/2022 $2,406.86
295816 3129 12/30/2022 $3,635.72
295817 1998 12/30/2022 $2,958.03
295818 2376 12/30/2022 $4,358.39
295819 2111 12/30/2022 $3,415.17
295820 3543 12/30/2022 $2,067.44
295821 3303 12/30/2022 $3,746.21
295822 3558 12/30/2022 $2,511.07
295823 1655 12/30/2022 $3,793.88
295824 3285 12/30/2022 $2,833.79
295825 1529 12/30/2022 $1,916.34
295826 3238 12/30/2022 $4,335.57
295827 3242 12/30/2022 $2,606.28
295828 3346 12/30/2022 $1,946.46
295829 1776 12/30/2022 $3,385.79
295830 3192 12/30/2022 $1,965.12
295831 2798 12/30/2022 $2,129.56
295832 2522 12/30/2022 $2,554.38
295833 3265 12/30/2022 $1,931.09
295834 1503 12/30/2022 $3,299.98
295835 1515 12/30/2022 $2,256.88
295836 2505 12/30/2022 $2,661.69
295837 3299 12/30/2022 $2,081.83
295838 3113 12/30/2022 $2,108.75
295839 1007 12/30/2022 $3,820.23
295840 2343 12/30/2022 $1,522.71
295841 3273 12/30/2022 $2,998.54
295842 3121 12/30/2022 $1,867.71
295843 1497 12/30/2022 $2,570.05
295844 3537 12/30/2022 $2,126.05
295845 2192 12/30/2022 $1,962.43
295846 3513 12/30/2022 $2,164.74
295847 3685 12/30/2022 $1,599.38
295848 2034 12/30/2022 $2,093.03
295849 2275 12/30/2022 $2,839.76
City of Victorville Council Payroll Report Page 4 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
295850 3380 12/30/2022 $2,548.73
295851 3191 12/30/2022 $2,128.53
295852 2530 12/30/2022 $2,848.81
295853 3496 12/30/2022 $894.04
295854 3051 12/30/2022 $2,189.30
295855 1750 12/30/2022 $2,260.01
295856 2770 12/30/2022 $1,805.13
295857 2228 12/30/2022 $2,780.51
295858 3101 12/30/2022 $2,464.94
295859 3335 12/30/2022 $1,985.92
295860 3611 12/30/2022 $1,214.62
295861 1249 12/30/2022 $2,043.00
295862 3284 12/30/2022 $2,188.92
295863 3580 12/30/2022 $1,191.04
295864 3621 12/30/2022 $1,126.78
295865 3270 12/30/2022 $1,728.38
295866 2248 12/30/2022 $1,888.82
295867 3263 12/30/2022 $1,686.54
295868 3622 12/30/2022 $1,092.52
295869 1588 12/30/2022 $2,126.69
295870 2189 12/30/2022 $3,006.52
295871 3560 12/30/2022 $1,620.80
295872 3509 12/30/2022 $1,936.40
295873 3226 12/30/2022 $1,986.28
295874 3257 12/30/2022 $2,360.41
295875 1121 12/30/2022 $2,404.18
295876 2689 12/30/2022 $996.22
295877 3149 12/30/2022 $2,303.43
295878 1865 12/30/2022 $2,115.78
295879 3479 12/30/2022 $1,702.05
295880 3689 12/30/2022 $1,126.78
295881 1723 12/30/2022 $1,975.82
295882 3296 12/30/2022 $2,155.73
295883 3707 12/30/2022 $1,754.09
295884 3572 12/30/2022 $1,304.60
295885 2531 12/30/2022 $3,520.88
295886 1513 12/30/2022 $2,112.58
295887 2118 12/30/2022 $1,341.88
295888 3387 12/30/2022 $1,153.04
295889 3330 12/30/2022 $1,650.03
295890 2681 12/30/2022 $3,408.36
295891 2119 12/30/2022 $1,795.13
295892 1612 12/30/2022 $1,959.96
295893 1282 12/30/2022 $2,531.42
295894 3610 12/30/2022 $1,599.38
295895 3277 12/30/2022 $1,960.63
295896 3287 12/30/2022 $1,872.69
295897 3037 12/30/2022 $2,027.17
295898 1449 12/30/2022 $2,654.04
295899 3481 12/30/2022 $1,728.38
City of Victorville Council Payroll Report Page 5 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
295900 2677 12/30/2022 $4,822.95
295901 3688 12/30/2022 $1,191.04
295902 3341 12/30/2022 $1,839.57
295903 1137 12/30/2022 $2,776.50
295904 2383 12/30/2022 $1,873.09
295905 3687 12/30/2022 $1,126.78
295906 3130 12/30/2022 $2,046.21
295907 2489 12/30/2022 $2,415.60
295908 3361 12/30/2022 $1,935.03
295909 3139 12/30/2022 $1,589.88
295910 2696 12/30/2022 $1,796.67
295911 1287 12/30/2022 $3,012.59
295912 3536 12/30/2022 $2,485.63
295913 1254 12/30/2022 $1,976.66
295914 3187 12/30/2022 $2,272.43
295915 2368 12/30/2022 $2,208.99
295916 3095 12/30/2022 $1,904.23
295917 3532 12/30/2022 $1,858.66
295918 3258 12/30/2022 $1,636.01
295919 3100 12/30/2022 $2,830.88
295920 3259 12/30/2022 $1,636.01
295921 3344 12/30/2022 $1,962.34
295922 1338 12/30/2022 $3,667.22
295923 3507 12/30/2022 $1,636.01
295924 2229 12/30/2022 $1,889.26
295925 1049 12/30/2022 $2,255.14
295926 1506 12/30/2022 $1,883.36
295927 1959 12/30/2022 $3,284.73
295928 3004 12/30/2022 $1,902.39
295929 1893 12/30/2022 $1,959.96
295930 3626 12/30/2022 $1,701.01
295931 1581 12/30/2022 $2,592.54
295932 3279 12/30/2022 $1,825.87
295933 2460 12/30/2022 $1,959.11
295934 3671 12/30/2022 $1,638.79
295935 3112 12/30/2022 $1,832.78
295936 2732 12/30/2022 $1,805.13
295937 2552 12/30/2022 $3,502.64
295938 2476 12/30/2022 $3,651.86
295939 2279 12/30/2022 $3,424.07
295940 3515 12/30/2022 $4,680.41
295941 3092 12/30/2022 $2,575.09
295942 3138 12/30/2022 $2,911.92
295943 3146 12/30/2022 $2,718.12
295944 2590 12/30/2022 $2,274.01
295945 2748 12/30/2022 $2,571.68
295946 3709 12/30/2022 $2,734.07
295947 2669 12/30/2022 $2,917.19
295948 2623 12/30/2022 $1,926.10
295949 2637 12/30/2022 $2,304.02
City of Victorville Council Payroll Report Page 6 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
295950 3079 12/30/2022 $1,975.19
295951 2638 12/30/2022 $2,461.83
295952 3109 12/30/2022 $2,923.34
295953 2671 12/30/2022 $3,735.72
295954 3019 12/30/2022 $3,332.74
295955 2593 12/30/2022 $2,415.19
295956 3461 12/30/2022 $3,881.56
295957 2626 12/30/2022 $1,981.66
295958 3038 12/30/2022 $2,748.77
295959 3052 12/30/2022 $2,092.24
295960 2290 12/30/2022 $2,174.84
295961 3716 12/30/2022 $1,636.09
295962 3110 12/30/2022 $2,833.06
295963 2641 12/30/2022 $2,201.02
295964 2612 12/30/2022 $3,147.46
295965 3698 12/30/2022 $1,658.27
295966 2642 12/30/2022 $3,517.72
295967 3705 12/30/2022 $2,232.31
295968 3331 12/30/2022 $2,174.78
295969 2674 12/30/2022 $2,651.93
295970 3231 12/30/2022 $2,286.60
295971 3228 12/30/2022 $2,737.51
295972 2628 12/30/2022 $2,893.01
295973 3301 12/30/2022 $1,863.67
295974 2630 12/30/2022 $2,848.76
295975 3182 12/30/2022 $2,390.68
295976 2599 12/30/2022 $2,260.60
295977 2683 12/30/2022 $2,835.24
295978 2753 12/30/2022 $2,971.64
295979 2610 12/30/2022 $2,699.13
295980 3323 12/30/2022 $2,859.14
295981 1389 12/30/2022 $2,914.25
295982 3264 12/30/2022 $2,046.82
295983 2808 12/30/2022 $1,813.54
295984 2646 12/30/2022 $3,612.52
295985 3617 12/30/2022 $1,840.11
295986 2600 12/30/2022 $2,310.74
295987 2524 12/30/2022 $2,711.00
295988 2686 12/30/2022 $2,042.96
295989 2193 12/30/2022 $2,383.19
295990 3322 12/30/2022 $2,435.64
295991 3629 12/30/2022 $2,239.35
295992 3230 12/30/2022 $2,949.61
295993 1931 12/30/2022 $2,407.36
295994 2038 12/30/2022 $2,102.68
295995 2339 12/30/2022 $2,479.01
295996 2678 12/30/2022 $2,715.52
295997 3240 12/30/2022 $2,015.87
295998 3215 12/30/2022 $2,668.22
295999 3140 12/30/2022 $2,015.96
City of Victorville Council Payroll Report Page 7 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
296000 3035 12/30/2022 $1,936.44
296001 3651 12/30/2022 $2,017.80
296002 3185 12/30/2022 $2,189.18
296003 1853 12/30/2022 $2,958.45
296004 3645 12/30/2022 $765.14
296005 3503 12/30/2022 $2,572.67
296006 3589 12/30/2022 $977.00
296007 3676 12/30/2022 $692.86
296008 3579 12/30/2022 $685.35
296009 3376 12/30/2022 $3,695.27
296010 3384 12/30/2022 $1,085.49
296011 3386 12/30/2022 $1,945.04
296012 2488 12/30/2022 $1,049.75
296013 3120 12/30/2022 $1,023.71
296014 3502 12/30/2022 $2,188.23
296015 3582 12/30/2022 $1,086.81
296016 3654 12/30/2022 $915.60
296017 3252 12/30/2022 $2,528.33
296018 3070 12/30/2022 $2,230.95
296019 3657 12/30/2022 $915.60
296020 1866 12/30/2022 $1,848.91
296021 3371 12/30/2022 $1,100.87
296022 3674 12/30/2022 $853.10
296023 3655 12/30/2022 $971.44
296024 3656 12/30/2022 $915.60
296025 2478 12/30/2022 $1,059.30
296026 3648 12/30/2022 $679.69
296027 3470 12/30/2022 $1,040.34
296028 3667 12/30/2022 $473.23
296029 3471 12/30/2022 $1,040.34
296030 3531 12/30/2022 $4,046.30
296031 3587 12/30/2022 $915.60
296032 3669 12/30/2022 $566.66
296033 3029 12/30/2022 $1,993.15
296034 3326 12/30/2022 $3,092.82
296035 3649 12/30/2022 $326.76
296036 3609 12/30/2022 $915.60
296037 3492 12/30/2022 $465.50
296038 3691 12/30/2022 $810.20
296039 3576 12/30/2022 $1,049.99
296040 3647 12/30/2022 $673.10
296041 3566 12/30/2022 $465.72
296042 3368 12/30/2022 $1,946.02
296043 2006 12/30/2022 $2,005.60
296044 2684 12/30/2022 $1,031.22
296045 1966 12/30/2022 $2,244.30
296046 2204 12/30/2022 $3,005.54
296047 2355 12/30/2022 $2,464.82
296048 3696 12/30/2022 $2,556.68
296049 3500 12/30/2022 $2,843.89
City of Victorville Council Payroll Report Page 8 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
296050 2039 12/30/2022 $1,805.13
296051 3281 12/30/2022 $1,726.93
296052 1990 12/30/2022 $2,621.48
296053 3550 12/30/2022 $1,910.68
296054 2629 12/30/2022 $2,069.22
296055 3348 12/30/2022 $1,663.78
296056 1544 12/30/2022 $2,854.49
296057 3107 12/30/2022 $2,103.20
296058 3081 12/30/2022 $1,962.17
296059 3523 12/30/2022 $3,973.98
296060 3271 12/30/2022 $2,498.00
296061 3017 12/30/2022 $4,940.29
296062 3706 12/30/2022 $2,140.82
296063 3512 12/30/2022 $2,670.36
296064 2027 12/30/2022 $2,675.91
296065 2330 12/30/2022 $2,634.70
296066 1932 12/30/2022 $1,974.05
296067 3437 12/30/2022 $5,109.73
296068 3652 12/30/2022 $2,059.59
296069 3421 12/30/2022 $4,100.73
296070 3439 12/30/2022 $5,871.49
296071 3440 12/30/2022 $5,280.61
296072 3441 12/30/2022 $5,188.24
296073 3473 12/30/2022 $8,337.32
296074 3406 12/30/2022 $3,543.77
296075 3422 12/30/2022 $6,043.66
296076 3442 12/30/2022 $4,120.22
296077 3433 12/30/2022 $5,985.06
296078 3469 12/30/2022 $3,798.12
296079 3424 12/30/2022 $3,812.67
296080 3414 12/30/2022 $5,569.04
296081 3704 12/30/2022 $4,142.22
296082 3710 12/30/2022 $2,592.37
296083 3443 12/30/2022 $5,854.67
296084 3600 12/30/2022 $4,254.68
296085 3711 12/30/2022 $2,431.66
296086 3598 12/30/2022 $4,713.02
296087 3418 12/30/2022 $5,753.17
296088 3715 12/30/2022 $2,426.21
296089 3444 12/30/2022 $3,871.96
296090 3583 12/30/2022 $6,940.63
296091 3585 12/30/2022 $4,745.49
296092 3594 12/30/2022 $6,227.66
296093 3713 12/30/2022 $2,589.43
296094 1718 12/30/2022 $7,968.16
296095 3409 12/30/2022 $4,872.35
296096 3708 12/30/2022 $2,126.21
296097 3426 12/30/2022 $4,735.07
296098 3642 12/30/2022 $2,780.87
296099 3584 12/30/2022 $4,767.33
City of Victorville Council Payroll Report Page 9 of 10 01/05/2023 Check Number Employee ID Check Date Total Net
296100 3538 12/30/2022 $2,240.02
296101 3410 12/30/2022 $3,827.88
296102 3447 12/30/2022 $5,647.45
296103 3427 12/30/2022 $3,555.16
296104 3607 12/30/2022 $3,707.49
296105 3411 12/30/2022 $6,344.58
296106 3448 12/30/2022 $3,607.92
296107 3571 12/30/2022 $2,464.42
296108 3518 12/30/2022 $2,101.37
296109 3449 12/30/2022 $4,581.88
296110 3428 12/30/2022 $3,980.46
296111 3429 12/30/2022 $4,167.86
296112 3455 12/30/2022 $5,304.03
296113 3451 12/30/2022 $5,514.36
296114 3712 12/30/2022 $2,589.99
296115 3595 12/30/2022 $4,420.90
296116 3430 12/30/2022 $4,927.86
296117 3452 12/30/2022 $3,381.53
296118 3417 12/30/2022 $2,853.34
296119 3431 12/30/2022 $3,842.04
296120 3419 12/30/2022 $3,124.76
296121 3524 12/30/2022 $4,979.37
296122 3412 12/30/2022 $4,418.22
296123 3420 12/30/2022 $6,061.15
296124 3378 12/30/2022 $4,136.59
296125 3435 12/30/2022 $4,099.45
296126 3432 12/30/2022 $3,198.86
296127 3408 12/30/2022 $7,232.87
296128 3456 12/30/2022 $4,300.40
296129 3591 12/30/2022 $4,506.22
296130 3392 12/30/2022 $6,319.35
296131 2210 12/30/2022 $4,226.74
296132 3434 12/30/2022 $4,427.53
Advices Total 1,257,270.02
City of Victorville Council Payroll Report Page 10 of 10 01/05/2023 Check Date Total Gross
12/22/2022 $138.05
12/30/2022 $238,783.52
12/23/2022 $12.20
12/30/2022 $69,781.80
12/30/2022 $4,392.35
1/3/2023 $10,489.26
1/11/2023 $292,867.33
Advices Total 616,464.51
Deferred Comp (457)
PERS
IRS
State Taxes
Electronic Vendor Payments
Vendor
IRS
State Taxes
CASDU
City of Victorville Council Payroll Report Page 1 of 1 01/05/2023 Item Number: 5
City Council / Board of Directors
Consent Calendar
Meeting of: February 7, 2023
Submitted By:
Brian Gengler, City Engineer
Subject:
Partial Securities Release for Tract Map No. 16774
Recommendation:
That the Honorable City Council:
(1) Accept the Water, Drainage and Sewer public improvements; and (2) Approve an additional 20-percent release of the water, drainage, and sewer Faithful Performance Securities for Tract Map No. 16774.
Fiscal Impact:
There is no fiscal impact resulting from this action.
Strategic Plan Goal:
This item aligns with Goal E., Strategy 1. in the Strategic Plan, “Invest in Infrastructure” and “Implement the City’s Capital Improvement Program to meet community needs.” Although this is not a Capital Improvement Project, we apply the same strategy to private development projects as they are essential in meeting the community’s needs.
Background:
Tract Map No. 16774 (Tract 16774) is a 150-lot single-family housing subdivision located at the northwest corner of La Mesa Road and Peña Road. FHII, LLC, also known as Frontier Homes (Developer), entered into a Subdivision Improvement Agreement (SIA) with the City at the May 20, 2021, City Council meeting. Per the SIA and the conditions of approval, the Developer is required to install public improvements such as streets, landscaping, sewer, storm drain, and water systems.
Discussion:
Since May of 2021, Frontier Homes has been developing Tract 16774. At the June 7, 2022, meeting, the Council approved a reduction of 60-percent release for the water, sewer, drainage, landscaping, and streets faithful performance securities. The Developer 2 9
5 5
has requested an additional 20-percent reduction of the public improvement securities for water, drainage, and sewer as those systems are now complete. The remaining 20- percent of the faithful performance securities will be held for a one-year warranty period in accordance with Victorville Municipal Code Section 17.64.070 (4) and the entirety of the Labor and Materials security will be held for six months in accordance with Victorville Municipal Code Section 17.64.070 (3).
Staff remains available for any questions the City Council may Attachments: A. Vicinity Map
B. Existing Security Tables
C. Existing Securities
Attachment A
Vicinity Map
Attachment B
Security Table
Security Tables
Developer:
FH II, LLC, a California Limited Liability Company
2151 E. Convention Center Way, Suite 222
Ontario, CA 91764
Faithful Performance Security
Water Improvements – No. 0791244
Labor & Materials Security
Water Improvements – No. 0791244
Amount of ORIGINAL Security: $742,511.00 Amount of ORIGINAL Security: $371,255.50 Amount of Security CURRENTLY: $297,004.40 Amount of Security CURRENTLY: $371,255.50 Amount of Security being REDUCED: $148,502.20 Amount of Security being REDUCED: $0.00 Amount of Security REMAINING: $148,502.20 Amount of Security REMAINING: $371,255.50 Faithful Performance Security
Sewer Improvements – No. 0791243
Labor & Materials Security
Sewer Improvements – No. 0791243
Amount of ORIGINAL Security: $804,680.25 Amount of ORIGINAL Security: $402,340.13 Amount of Security CURRENTLY: $321,872.10 Amount of Security CURRENTLY: $402,340.13 Amount of Security being REDUCED: $160,936.05 Amount of Security being REDUCED: $0.00 Amount of Security REMAINING: $160,936.05 Amount of Security REMAINING: $402,340.13 Faithful Performance Security
Drainage Improvements – No. 0799544
Labor & Materials Security
Drainage Improvements – No. 0799544
Amount of ORIGINAL Security: $40,001.50 Amount of ORIGINAL Security: $20,000.75 Amount of Security CURRENTLY: $16,000.60 Amount of Security CURRENTLY: $20,000.75 Amount of Security being REDUCED: $8,000.30 Amount of Security being REDUCED: $0.00 Amount of Security REMAINING: $8,000.30 Amount of Security REMAINING: $20,000.75
Attachment C
Existing Securities
Item Number: 6
City Council / Board of Directors
Consent Calendar
Meeting of: February 7, 2023
Submitted By:
Brian Gengler, City Engineer
Subject:
Partial Securities Release for Tract Map No. 18100
Recommendation:
That the Honorable City Council:
(1) Accept the Water and Sewer public improvements; and (2) Approve an 80-percent release of the water and sewer Faithful Performance Securities for Tract Map No. 18100.
Fiscal Impact:
There is no fiscal impact resulting from this action.
Strategic Plan Goal:
This item aligns with Goal E., Strategy 1. in the Strategic Plan, “Invest in Infrastructure” and “Implement the City’s Capital Improvement Program to meet community needs.” Although this is not a Capital Improvement Project, we apply the same strategy to private development projects as they are essential in meeting the community’s needs.
Background:
Tract Map No. 18100 (Tract 18100) is a 73-lot, single family subdivision named Diamond Ridge III, located at the southwest corner of Sunset Road and Mesa Linda Street. On April 20, 2021, the City Council approved a Subdivision Improvement Agreement (SIA) with Frontier Communities (Developer) and accepted improvement bonds as security.
Discussion:
Immediately following the security substitution approval, Frontier Communities proceeded with tract development. At this time, the Developer has completed the water and sewer public improvements. Therefore, staff recommends a reduction of 80-percent for the water and sewer improvements Faithful Performance securities. The remaining 20- percent of the Faithful Performance securities will be held for a one-year warranty period 2 9
5 7
in accordance with Victorville Municipal Code Section 17.64.070 (4) and the entirety of the Labor and Materials security will be held for six months in accordance with Victorville Municipal Code Section 17.64.070 (3).
Staff remains available to answer any questions the Council may have.
Attachments: A. Vicinity Map
B. Security Tables
C. Existing Securities
Attachment A
Vicinity Map
Attachment B
Security Tables
Security Tables
Developer:
FH II, LLC, a California Limited Liability Company
2151 E. Convention Center Way, Suite 222
Ontario, CA 91764
Faithful Performance Security
Water Improvements – No. 0799560
Labor & Materials Security
Water Improvements – No. 0799560
Amount of ORIGINAL Security: $737,895.40 Amount of ORIGINAL Security: $368,947.70 Amount of Security CURRENTLY: $737,895.40 Amount of Security CURRENTLY: $0.00 Amount of Security being REDUCED: $590,316.32 Amount of Security being REDUCED: $0.00 Amount of Security REMAINING: $147,579.08 Amount of Security REMAINING: $368,947.70 Faithful Performance Security
Sewer Improvements – No. 0799561
Labor & Materials Security
Sewer Improvements – No. 0799561
Amount of ORIGINAL Security: $384,928.50 Amount of ORIGINAL Security: $192,464.25 Amount of Security CURRENTLY: $384,928.50 Amount of Security CURRENTLY: $192,464.25 Amount of Security being REDUCED: $307,942.80 Amount of Security being REDUCED: $0.00 Amount of Security REMAINING: $76,985.70 Amount of Security REMAINING: $192,464.25 Attachment C
Existing Securities
Item Number: 7
City Council / Board of Directors
Consent Calendar
Meeting of: February 7, 2023
Submitted By:
Brian Gengler, City Engineer
Subject:
Partial Securities Release for Tract Map No. 16828
Recommendation:
That the Honorable City Council:
(1) Accept the Water and Sewer public improvements; and (2) Approve an additional 20-percent release of the water and sewer Faithful Performance Securities for Tract Map No. 16828.
Fiscal Impact:
There is no fiscal impact resulting from this action.
Strategic Plan Goal:
This item aligns with Goal E., Strategy 1. in the Strategic Plan, “Invest in Infrastructure” and “Implement the City’s Capital Improvement Program to meet community needs.” Although this is not a Capital Improvement Project, we apply the same strategy to private development projects as they are essential in meeting the community’s needs.
Background:
Tract Map No. 16828 (Tract 16828) is a subdivision of 40 single-family lots located at the northwest corner of Cordova Road and Tawney Ridge Lane. On September 14, 2021, the City Council approved a Subdivision Improvement Agreement (SIA) with FH II, LLC , also known as Frontier Communities (Developer), and accepted improvement bonds as security.
Discussion:
Immediately following the security substitution approval, Frontier Communities proceeded with tract development. At the September 6, 2022 meeting the Council approved a reduction of 60-percent for the water and sewer improvements. At this time, Frontier Communities has completed the required water & sewer systems. Therefore, staff 2 9
5 6
recommends a reduction of an additional 20-percent for the water and sewer improvements Faithful Performance Securities. The remaining 20-percent of the Faithful Performance securities will be held for a one-year warranty period in accordance with Victorville Municipal Code Section 17.64.070 (4) and the entirety of the Labor and Materials security will be held for six months in accordance with Victorville Municipal Code Section 17.64.070 (3).
Staff remains available for any questions the City Council may have.
Attachments: A. Vicinity Map
B. Security Tables
C. Existing Securities
Attachment A
Vicinity Map
Attachment B
Security Tables
Security Tables
Developer:
FH II, LLC
2151 E. Convention Center Way, Suite 222
Ontario, CA 91764
Faithful Performance Security
Water Improvements – No. 0799586
Labor & Materials Security
Water Improvements – No. 0799586
Amount of ORIGINAL Security: $216,898 Amount of ORIGINAL Security: $108,449 Amount of Security CURRENTLY: $86,759.20 Amount of Security CURRENTLY: $108,449 Amount of Security being REDUCED: $43,379.60 Amount of Security being REDUCED: $0.00 Amount of Security REMAINING: $43,379.60 Amount of Security REMAINING: $108,449 Faithful Performance Security
Sewer Improvements – No. 0799585
Labor & Materials Security
Sewer Improvements – No. 0799585
Amount of ORIGINAL Security: $264,562.10 Amount of ORIGINAL Security: $132,281.05 Amount of Security CURRENTLY: $105,824.84 Amount of Security CURRENTLY: $132,281.05 Amount of Security being REDUCED: $52,912.42 Amount of Security being REDUCED: $0.00 Amount of Security REMAINING: $52,912.42 Amount of Security REMAINING: $132,281.05 Attachment C
Existing Securities
Item Number: 8
City Council / Board of Directors
Consent Calendar
Meeting of: February 07, 2023
Submitted By:
Brenda Hampton, Director of Electric Utility Services
Subject:
VMUS Operating Result Report for FY 2022 - Quarter 4
Recommendation:
That the Honorable City Council review and file this report.
Fiscal Impact:
There are no fiscal impacts associated with this report.
Strategic Plan:
Financial Sustainability
Discussion:
Victorville Municipal Utility Services (VMUS) operates an electric and gas utility for the City of Victorville serving select industrial and commercial customers. As part of our ongoing effort to provide transparency to Council, this VMUS Operating Results Report summarizes key financial and performance metrics in fiscal year 2022 Quarter 4.
Staff remains available for any questions you may have.
Attachments: A. Quarter 4 FY 2022 Operating Results Report Attachment A
Quarter 4 FY2022
Operating Results
VICTORVILLE
MUNICIPAL
UTILITY
SERVICES
(VMUS) April —June 2022 Fiscal Year 2022, Quarter 4
Operating Results Q4
Inside this issue:
Highlights 1
Electric Operating
Results
1 Capacity
Summary
2 Gas Operating
Results
2 Electric and Gas
Operating Results
Summary
2 VMUS projects 2
Quarter 4, FY 2022, VMUS Electric sold 27,637 MWh for $4.5 million.
Compared to Quarter 4, FY 2021, VMUS Electric sold 26,510 MWh for $3.9 million.
Electric
PROJECTS IN
PROGRESS:
· SCLA CAPACITY AND
DISTRIBUTION
UPGRADES
· TWO LARGER SIZE
ELECTRIC AND
NATURAL GAS
SERVICE
CONNECTIONS (LOT
19 AND LOT 44 AT
SCLA)
· ONE MEDIUM SIZE
ELECTRIC SERVICE
CONNECTION (LOT
43A AT SCLA)
UPCOMING PROJECTS:
· ONE MEDIUM SIZE
ELECTRIC SERVICE
CONNECTION (LOT
43B SCLA)
SCLA Electric Capacity Results
Gas
Electric
April 2022 - VMUS sold 8,873 MWh to 36 customers
and 82 connections for $1,228,278. Compared to Jan-
uary 2021 (prior year): (i) sales increased 7.1%; (ii)
revenues increased 16.3%; (iii) average system rate
increased 8.6%; (iv) cost of wholesale power increased
25%; and (v) the gross margin increased by 55.7%.
May 2022 - VMUS sold 9,189 MWh to 36 customers
and 85 connections for $1,291,548. Compared to Feb-
ruary 2021 (prior year): (i) sales increased 3.9%; (ii) revenues increased 17.6%; (iii) average system rate
increased 13.1% (iv) cost of wholesale power in-
creased 20.5%; and (v) the gross margin increased by
23.0%.
June 2022 - VMUS sold 9,575 MWh to 35 customers
and 84 connections for $1,971,804. Compared to
March 2021 (prior year): (i) sales increased 2%; (ii)
revenues increased 11.8%; (iii) average system rate
increased 9.6%; (iv) cost of wholesale power increased
23.3%; and (v) the gross margin increased by 4.3%.
Quarter 4, FY 2022
VMUS Gas sold 622,674
Therms for $841,245
Compared to Quarter 4,
FY 2021 VMUS Gas sold
529,097 Therms for
$593,138
Representing an 4% in-
crease in Therms sold.
Electric and Gas Operating Results Summary
Gas
April 2022 - VMUS sold 240,011 Therms to 27 cus-
tomers and 60 connections for $287,978. Compared to
April 2021 (prior year): (i) sales increased 6.6%; (ii) revenues increased 29.1%; (iii) cost of commodity/
transportation increased 127.8%; and (iv) the gross
margin decreased 33.9%.
May 2022 - VMUS sold 195,118 Therms to 27 custom-
ers and 60 connections for $268,156. Compared to
February 2021 (prior year): (i) sales increased 4.1%; (ii) revenues increased 42.5%; (iii) cost of commodity/
transportation increased 81.2%; and (iv) the gross mar- gin decreased 18.4%.
June 2022 - VMUS sold 187,545 Therms to 27 cus-
tomers and 60 connections for $285,111. Compared to
March 2021 (prior year): (i) sales increased 4.5%; (ii) revenues increased 56.7%; (iii) cost of commodity/
transportation increased 97.8%; and (iv) the gross mar- gin decreased 26.9%.
Quarter 4, FY 2022
VMUS SCLA
maximum system
capacity is 17.34 MW.
Compared to Q4 2021
peak at 15.04 MW, Q4
2022 peak
increased to 15.33
MW.
VMUS Foxborough
Maximum Capacity is
5.6 MW. Compared to
Q4 2021, Q4 2022
peak was
consistent at 4.4 MW.
Item Number: 9
City Council / Board of Directors
Consent Calendar
Meeting of: February 07, 2023
Submitted By:
Brenda Hampton, Director of Electric Utility Services
Subject:
VMUS Operating Result Report for FY 2023 - Quarter 1
Recommendation:
That the Honorable City Council review and file this report.
Fiscal Impact:
There are no fiscal impacts associated with this report.
Strategic Plan:
Financial Sustainability
Discussion:
Victorville Municipal Utility Services (VMUS) operates an electric and gas utility for the City of Victorville serving select industrial and commercial customers. As part of our ongoing effort to provide transparency to Council, this VMUS Operating Results Report summarizes key financial and performance metrics in fiscal year 2023 Quarter 1.
Staff remains available for any questions you may have.
Attachments: A. Quarter 1 FY 2023 Operating Results Report Attachment A
Quarter 1 FY2023
Operating Results
VICTORVILLE
MUNICIPAL
UTILITY
SERVICES
(VMUS) July —September 2022 Fiscal Year 2023, Quarter 1 Operating Results Q1
Inside this issue:
Highlights 1
Electric Operating
Results
1 Capacity
Summary
2 Gas Operating
Results
2 Electric and Gas
Operating Results
Summary
2 VMUS projects 2
Quarter 1, FY 2023, VMUS Electric sold 29,388 MWh for $6.5 million.
Compared to Quarter 1, FY 2022, VMUS Electric sold 28,931 MWh for $5.6 million.
Electric
PROJECTS IN
PROGRESS:
· SCLA CAPACITY AND
DISTRIBUTION
UPGRADES
· TWO LARGER SIZE
ELECTRIC AND
NATURAL GAS
SERVICE
CONNECTIONS (LOT
19 AND LOT 44 AT
SCLA)
· TWO MEDIUM SIZE
ELECTRIC SERVICE
CONNECTIONS (LOT
43A AND 43B AT SCLA)
UPCOMING PROJECTS:
· PHASE IV OF GAS
PIPE REPLACEMENT
PROJECT
SCLA Electric Capacity Results
Gas
Electric
July 2022 - VMUS sold 10,009 MWh to 36 customers
and 83 connections for $2,071,754. Compared to July
2021 (prior year): (i) sales increased 4.6%; (ii) reve- nues increased 11.5%; (iii) average system rate in-
creased 6.6%; (iv) cost of wholesale power increased
4.4%; and (v) the gross margin increased by 17.8%.
August 2022 - VMUS sold 10,417 MWh to 36 cus-
tomers and 87 connections for $2,266,983. Compared
to February 2021 (prior year): (i) sales increased 6.3%; (ii) revenues increased 21.5%; (iii) average system rate increased 14.3% (iv) cost of wholesale power in-
creased 32.9%; and (v) the gross margin increased by
12.7%.
September 2022 - VMUS sold 9,614 MWh to 35
customers and 89 connections for $2,182,313. Com-
pared to March 2021 (prior year): (i) sales increased
0.5%; (ii) revenues increased 16.8%; (iii) average sys- tem rate increased 16.1%; (iv) cost of wholesale pow-
er increased 18.5%; and (v) the gross margin increased
by 15.3%.
Quarter 1, FY 2023
VMUS Gas sold 541,236
Therms for $752,169
Compared to Quarter 1,
FY 2022 VMUS Gas sold
589,012 Therms for
$627,323
Representing an 8.1%
decrease in Therms sold.
Electric and Gas Operating Results Summary
Gas
July 2022 - VMUS sold 181,636 Therms to 27 custom-
ers and 60 connections for $239,432. Compared to July
2021 (prior year): (i) sales decreased 2.7%; (ii) revenues increased 22.9%; (iii) cost of commodity/transportation increased 62.2%; and (iv) the gross margin decreased
29.6%.
August 2022 - VMUS sold 188,720 Therms to 27
customers and 60 connections for $250,771. Com-
pared to August 2021 (prior year): (i) sales decreased
0.3%; (ii) revenues increased 23.5%; (iii) cost of com- modity/transportation increased 61.1%; and (iv) the
gross margin decreased 23.4%.
September 2022 - VMUS sold 170,880 Therms to 27
customers and 60 connections for $261,966. Com-
pared to September 2021 (prior year): (i) sales de-
creased 19.8%; (ii) revenues increased 14.2%; (iii) cost of commodity/transportation increased 76.5%; and (iv)
the gross margin decreased 78%.
Quarter 1, FY 2023
VMUS SCLA
maximum system
capacity is 17.34 MW.
Compared to Q1 2022
peak at 15.27 MW, Q1
2023 peak
increased to 18.09
MW.
VMUS Foxborough
Maximum Capacity is
5.6 MW. Compared to
Q1 2022 peak at 4.5
MW, Q1 2023 peak
increased to 4.6 MW.
Item Number: 10
City Council / Board of Directors
Consent Calendar
Meeting of: February 7, 2023
Submitted By:
Joe Slegers, Building Official
Subject:
Building Division Activity Report
Recommendation:
That the Honorable Council review and file.
Fiscal Impact:
None.
Strategic Plan Goal:
The City of Victorville Strategic Plan 2020-2023 identifies multi-year strategic goals and various strategies to work toward achieving those goals. Goal A, Financial Sustainability focuses on fostering fiscal health through disciplined long-term planning, cost control, increased revenues, and cost recovery. Specific to this project, Strategy 2 focuses on maintaining adequate reserves in the general fund in order to protect against fluctuations in the economy, unexpected expenses and to meet or exceed the Government Finance Officers Association recommended standard. The data in this report can assist the Council in monitoring development activity for fluctuations due to economic conditions and other factors.
Background:
Staff has compiled the attached Building Division Activity Report for the fourth quarter of 2022.
Discussion:
The attached Building Division Activity Report includes information regarding permit activity and revenue for single family residences, new commercial and industrial construction, and miscellaneous issued and finaled permits.
Attachments: A. Building Division Activity Report – Q4 2022.
Attachment
A
City of Victorville
Building Department
Building Division
Submitted by
Joseph Slegers
Building Official
December 2022 Year-to-Date
Monthly Report Summary
Year-to-Date Report of New Construction Permits Issued
Year-to-Date Report of New Construction Permits Finaled Year-to-Date Report of Miscellaneous Permits Finaled
Year-to-Date Report of Permit Revenue
Year-to-Date Summaries of Permit Activity
City of Victorville
Building Department
Building Division
Year-to-Date Report of New Construction Permits Issued
0 20
40 60
80 100
120
140
January February March April May June July August September October November December 69 15
43 39
60 69
84 68
124
39 67
63 53
58 117
55 86
41 20
41 37
21 18
14 2021 2022
Single Family Residences - Prior Year Comparison
Year-to-Date Permits Issued
2021: 740
2022: 561
0 0.4
0.8 1.2
1.6 2
2.4 2.8
3.2 January February March April May June July August September October November December 2 0
1 0
1 1
0 0
1 1
2 00
2 2
3 3
2 0
1 0
2 1
0 2021 2022
Commercial - Prior Year Comparison
Year-to-Date Permits Issued
2021: 9
2022: 16
City of Victorville
Building Department
Building Division
Year-to-Date Report of New Construction Permits Issued
Category Quantity Valuation
January
Single Family Residences 53 $16,264,404
February
Commercial 2 $2,669,748
Single Family Residences 58 $18,656,422
March
Commercial 2 $571,064
Single Family Residences 117 $41,504,139
April
Commercial 3 $1,022,991
Single Family Residences 55 $19,587,567
May
Commercial 3 $7,254,261
Single Family Residences 86 $31,368,792
June
Commercial 2 $1,476,103
Single Family Residences 41 $15,418,391
July
Single Family Residences 20 $5,312,110
August
Commercial 1 $728,946
Single Family Residences 41 $13,969,087
September
Single Family Residences 37 $13,144,458
October
Commercial 2 $48,244,399
Multi-Family 1 $1,851,360
Single Family Residences 21 $7,439,068
November
Commercial 1 $589,261
Single Family Residences 18 $6,041,886
December
Single Family Residences 14 $5,282,419
Year-to-Date Total: 578 $258,396,877
City of Victorville
Building Department
Building Division
Year-to-Date Report of New Construction Permits Finaled 0 20
40 60
80 100
January February March April May June July August September October November December 32 47
82 34
72 61
43 26
55 46
32 78
39 80
77 63
82 84
47 56
75 32
29 30
2021 2022
Single Family Residence - Prior Year Comparison
Year-to-Date Permits Finaled
2021: 608
2022: 694
0 0.4
0.8 1.2
1.6 2
January February March April May June July August September October November December 0 2
0 0
1 1 1 1 1
2 0
11 1 1
0 1
2 0 0
1 1
0 2
2021 2022
Commercial - Prior Year Comparison
Year-to-Date Permits Finaled
2021: 10
2022: 10
City of Victorville
Building Department
Building Division
Year-to-Date Report of New Construction Permits Finaled Category Quantity Valuation
January
1Commercial $366,799.10
39Single Family Residence $11,436,200.86
40 $11,803,000
February
1Commercial $993,577.92
80Single Family Residence $25,318,243.60
81 $26,311,822
March
1Commercial $119,727.66
77Single Family Residence $23,227,572.26
78 $23,347,300
April
63Single Family Residence $19,283,191.45
63 $19,283,191
May
1Commercial $1,166,370.80
82Single Family Residence $25,170,280.14
83 $26,336,651
June
2Commercial $431,778.10
84Single Family Residence $27,336,077.84
86 $27,767,856
July
47Single Family Residence $16,131,329.74
47 $16,131,330
August
56Single Family Residence $19,394,251.62
56 $19,394,252
Category Continued Quantity Cont. Valuation Cont.
City of Victorville
Building Department
Building Division
Year-to-Date Report of New Construction Permits Finaled September
1Commercial $10,000.00
75Single Family Residence $25,474,878.28
76 $25,484,878
October
1Commercial $349,977.60
32Single Family Residence $9,906,519.01
33 $10,256,497
November
29Single Family Residence $9,146,594.79
29 $9,146,595
December
2Commercial $108,743,731.58
30Single Family Residence $10,742,490.50
32 $119,486,222
Year-to-Date Total: 704 $334,749,593
City of Victorville
Building Department
Building Division
Year-to-Date Report of Miscellaneous Permits Finaled
0 40
80 120
160
200
240
280
320
January February March April May June July August September October November December 260
256
195
203
199
254
241
282
294
224
232
173
256
251
308
277
229
262
222
288
277
279
233
205
2021 2022
Miscellaneous Permits Finaled - Prior Year Comparison
Year-to-Date Permits Finaled
2021: 2813
2022: 3087
City of Victorville
Building Department
Building Division
Year-to-Date Report of Miscellaneous Permits Finaled
Category Quantity
January
1Building (Residential) - Addition
7Building (Residential) - Alteration/Remodel/Fire Damage Repair
1Building (Non-Residential) - Cell Tower
41Mechanical (Residential) - HVAC Changeout/Repair
10Pool - In Ground
22Building (Residential) - Patio Cover
107Electrical (Residential) - Photovoltaic System
6Building (Residential) - Roof
1Demolition - Single Family Residential
5Building (Non-Residential) - Tenant Improvement/Alteration 55Plumbing (Residential) - Water Heater
256
February
8Building (Residential) - Alteration/Remodel/Fire Damage Repair
1Building (Non-Residential) - Cell Tower
57Mechanical (Residential) - HVAC Changeout/Repair
9Pool - In Ground
1Demolition - Non-Residential
14Building (Residential) - Patio Cover
95Electrical (Residential) - Photovoltaic System
10Building (Residential) - Roof
1Demolition - Single Family Residential
4Building (Non-Residential) - Tenant Improvement/Alteration 51Plumbing (Residential) - Water Heater
251
Quantity ContinuedCategory Continued
City of Victorville
Building Department
Building Division
Year-to-Date Report of Miscellaneous Permits Finaled
March
6Building (Residential) - Alteration/Remodel/Fire Damage Repair
82Mechanical (Residential) - HVAC Changeout/Repair
9Pool - In Ground
16Building (Residential) - Patio Cover
123Electrical (Residential) - Photovoltaic System
11Building (Residential) - Roof
1Demolition - Single Family Residential
3Building (Non-Residential) - Tenant Improvement/Alteration 57Plumbing (Residential) - Water Heater
308
April
4Building (Residential) - Alteration/Remodel/Fire Damage Repair
2Building (Non-Residential) - Cell Tower
76Mechanical (Residential) - HVAC Changeout/Repair
11Pool - In Ground
11Building (Residential) - Patio Cover
137Electrical (Residential) - Photovoltaic System
12Building (Residential) - Roof
3Demolition - Single Family Residential
1Building (Non-Residential) - Tenant Improvement/Alteration 20Plumbing (Residential) - Water Heater
277
Quantity ContinuedCategory Continued
City of Victorville
Building Department
Building Division
Year-to-Date Report of Miscellaneous Permits Finaled
May
1Pool - Above Ground Pool/Spa
9Building (Residential) - Alteration/Remodel/Fire Damage Repair
42Mechanical (Residential) - HVAC Changeout/Repair
5Pool - In Ground
17Building (Residential) - Patio Cover
126Electrical (Residential) - Photovoltaic System
14Building (Residential) - Roof
1Demolition - Single Family Residential
5Building (Non-Residential) - Tenant Improvement/Alteration 9Plumbing (Residential) - Water Heater
229
June
4Building (Residential) - Addition
9Building (Residential) - Alteration/Remodel/Fire Damage Repair
1Building (Non-Residential) - Cell Tower
40Mechanical (Residential) - HVAC Changeout/Repair
16Pool - In Ground
1Demolition - Non-Residential
23Building (Residential) - Patio Cover
144Electrical (Residential) - Photovoltaic System
11Building (Residential) - Roof
7Building (Non-Residential) - Tenant Improvement/Alteration 6Plumbing (Residential) - Water Heater
262
Quantity ContinuedCategory Continued
City of Victorville
Building Department
Building Division
Year-to-Date Report of Miscellaneous Permits Finaled
July
1Pool - Above Ground Pool/Spa
8Building (Residential) - Alteration/Remodel/Fire Damage Repair
28Mechanical (Residential) - HVAC Changeout/Repair
3Pool - In Ground
1Demolition - Non-Residential
14Building (Residential) - Patio Cover
140Electrical (Residential) - Photovoltaic System
3Building (Residential) - Roof
4Building (Non-Residential) - Tenant Improvement/Alteration 20Plumbing (Residential) - Water Heater
222
August
1Pool - Above Ground Pool/Spa
1Building (Residential) - Addition
7Building (Residential) - Alteration/Remodel/Fire Damage Repair
1Building (Non-Residential) - Cell Tower
28Mechanical (Residential) - HVAC Changeout/Repair
14Pool - In Ground
24Building (Residential) - Patio Cover
196Electrical (Residential) - Photovoltaic System
7Building (Non-Residential) - Roof
1Demolition - Single Family Residential
3Building (Non-Residential) - Tenant Improvement/Alteration 5Plumbing (Residential) - Water Heater
288
Quantity ContinuedCategory Continued
City of Victorville
Building Department
Building Division
Year-to-Date Report of Miscellaneous Permits Finaled
September
6Building (Residential) - Alteration/Remodel/Fire Damage Repair
3Building (Non-Residential) - Cell Tower
28Mechanical (Residential) - HVAC Changeout/Repair
8Pool - In Ground
20Building (Residential) - Patio Cover
187Electrical (Residential) - Photovoltaic System
15Building (Residential) - Roof
3Building (Non-Residential) - Tenant Improvement/Alteration 7Plumbing (Residential) - Water Heater
277
October
1Building (Non-Residential) - Accessory Structure
1Building (Residential) - Addition
9Building (Residential) - Alteration/Remodel/Fire Damage Repair
2Building (Non-Residential) - Cell Tower
33Mechanical (Residential) - HVAC Changeout/Repair
7Pool - In Ground
20Building (Residential) - Patio Cover
181Electrical (Residential) - Photovoltaic System
16Building (Residential) - Roof
2Building (Non-Residential) - Tenant Improvement/Alteration 7Plumbing (Residential) - Water Heater
279
Quantity ContinuedCategory Continued
City of Victorville
Building Department
Building Division
Year-to-Date Report of Miscellaneous Permits Finaled
November
1Pool - Above Ground Pool/Spa
9Building (Residential) - Alteration/Remodel/Fire Damage Repair
2Building (Non-Residential) - Cell Tower
31Mechanical (Residential) - HVAC Changeout/Repair
5Pool - In Ground
12Building (Residential) - Patio Cover
151Electrical (Residential) - Photovoltaic System
16Building (Residential) - Roof
2Building (Non-Residential) - Tenant Improvement/Alteration 4Plumbing (Residential) - Water Heater
233
December
7Building (Residential) - Alteration/Remodel/Fire Damage Repair
14Mechanical (Residential) - HVAC Changeout/Repair
6Pool - In Ground
16Building (Residential) - Patio Cover
131Electrical (Residential) - Photovoltaic System
17Building (Residential) - Roof
1Demolition - Single Family Residential
5Building (Non-Residential) - Tenant Improvement/Alteration 8Plumbing (Residential) - Water Heater
205
Year-to-Date Total: 3,087
City of Victorville
Building Department
Building Division
Year-to-Date Summaries of Permit Activity (01/01/2022 TO 12/31/2022) 222
Building (Non-Residential)
1,676
Building (Residential)
18 Demolition
51 Electrical (Non-Residential)
2,174
Electrical (Residential)
234
Fence/Wall
12 Grading (Non-Residential)
2 Grading (Residential)
6 Mechanical (Non-Residential)
443
Mechanical (Residential)
17 Plumbing (Non-Residential)
360
Plumbing (Residential)
102
Pool
57 Sign
Building (Non-Residential) 4.1%
Building (Residential) 31.2%
Demolition 0.3%
Electrical (Non-Residential) 0.9%
Electrical (Residential) 40.5%
Fence/Wall 4.4%
Grading (Non-Residential) 0.2%
Grading (Residential) 0.0%
Mechanical (Non-Residential) 0.1%
Mechanical (Residential) 8.2%
Plumbing (Non-Residential) 0.3%
Plumbing (Residential) 6.7%
Pool 1.9%
Sign 1.1%
Total: 100.0%
Permits Applied For By Permit Type
205
Building (Non-Residential)
1,152
Building (Residential)
14 Demolition
44 Electrical (Non-Residential)
2,225
Electrical (Residential)
222
Fence/Wall
15 Grading (Non-Residential)
6 Mechanical (Non-Residential)
445
Mechanical (Residential)
16 Plumbing (Non-Residential)
358
Plumbing (Residential)
97 Pool
56 Sign
Building (Non-Residential) 4.2%
Building (Residential) 23.7%
Demolition 0.3%
Electrical (Non-Residential) 0.9%
Electrical (Residential) 45.8%
Fence/Wall 4.6%
Grading (Non-Residential) 0.3%
Grading (Residential) 0.0%
Mechanical (Non-Residential) 0.1%
Mechanical (Residential) 9.2%
Plumbing (Non-Residential) 0.3%
Plumbing (Residential) 7.4%
Pool 2.0%
Sign 1.2%
Total: 100.0%
Permits Issued By Permit Type
City of Victorville
Building Department
Building Division
Year-to-Date Summaries of Permit Activity (01/01/2022 TO 12/31/2022) $2,119K
Building (Non-Residential)
$15,618K
Building (Residential)
$4K
Demolition
$21K
Electrical (Non-Residential)
$566K
Electrical (Residential)
$160K
Fence/Wall
$8K
Grading (Non-Residential)
$0K
Grading (Residential)
$1K
Mechanical (Non-Residential)
$47K
Mechanical (Residential)
$10K
Plumbing (Non-Residential)
$61K
Plumbing (Residential)
$49K
Pool
Building (Non-Residential) 11.3%
Building (Residential) 83.6%
Demolition 0.0%
Electrical (Non-Residential) 0.1%
Electrical (Residential) 3.0%
Fence/Wall 0.9%
Grading (Non-Residential) 0.0%
Grading (Residential) 0.0%
Mechanical (Non-Residential) 0.0%
Mechanical (Residential) 0.3%
Plumbing (Non-Residential) 0.1%
Plumbing (Residential) 0.3%
Pool 0.3%
Sign 0.1%
Total: 100.0%
Invoiced Permit Revenue By Permit Type
138
Building (Non-Residential)
1,222
Building (Residential)
12 Demolition
22 Electrical (Non-Residential)
1,769
Electrical (Residential)
183
Fence/Wall
10 Grading (Non-Residential)
5 Mechanical (Non-Residential)
496
Mechanical (Residential)
11 Plumbing (Non-Residential)
377
Plumbing (Residential)
107
Pool
40 Sign
Building (Non-Residential) 3.1%
Building (Residential) 27.8%
Demolition 0.3%
Electrical (Non-Residential) 0.5%
Electrical (Residential) 40.3%
Fence/Wall 4.2%
Grading (Non-Residential) 0.2%
Grading (Residential) 0.0%
Mechanical (Non-Residential) 0.1%
Mechanical (Residential) 11.3%
Plumbing (Non-Residential) 0.3%
Plumbing (Residential) 8.6%
Pool 2.4%
Sign 0.9%
Total: 100.0%
Permits Finaled By Permit Type
City of Victorville
Building Department
Building Division
Year-to-Date Report of Permit Revenue
0K 100K 200K 300K 400K 500K 600K 700K
January
February
March
April
May
June
July
August
September
October
November
December
$200,999
$198,565
$225,617
$259,043
$495,429
$319,205
$321,953
$605,522
$382,925
$318,231
$248,813
$254,810
$258,152
$184,672
$524,773
$289,088
$345,486
$383,767
$127,387
$287,766
$174,032
$164,192
$152,313
$239,419
2021 2022
Permit Revenue - Prior Year Comparison
Year-to-Date Totals
2021: $3,831,111.07
2022: $3,131,045.72
City of Victorville
Building Department
Building Division
Monthly Report of Permit Inspections
0 400
800
1200
1600
2000
2400
2800
January
February
March
April
May
June
July
August
September
October
Nov ember
December
2,354
2,044
2,532
1,968
2,326
1,893
1,751
2,104
1,732
1,529
1,185
1,071
1,629
1,480
1,796
1,412
1,656
1,391
1,251
1,487
1,291
1,108
894
768
Monthly Inspections Monthly Stops
Monthly Inspection Report
Item Number: 11
City Council / Board of Directors
Consent Calendar
Meeting of: February 7, 2023
Submitted By:
Jennifer Thompson, City Clerk
Subject:
Minutes of the November 1, 2022, November 15, 2022, and December 6, 2022, Regular City Council Meetings
Recommendation:
That the Honorable City Council approve the minutes of the Regular City Council Meetings held on November 1, 2022, November 15, 2022, and December 6, 2022 Fiscal Impact:
There is no fiscal impact as a result of this action.
Attachments: A. Minutes of the November 1, 2022, Regular City Council Meeting B. Minutes of the November 15, 2022, Regular City Council Meeting C. Minutes of the December 6, 2022, Regular City Council Meeting Attachment A
Minutes of the November 1, 2022,
Regular City Council Meeting
City Council Chambers
14343 Civic Drive
Victorville, CA
www.victorvilleca.gov
VICTORVILLE CITY COUNCIL
VICTORVILLE LIBRARY BOARD OF TRUSTEES
SOUTHERN CALIFORNIA LOGISTICS RAIL AUTHORITY
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
THE CITY AS HOUSING ASSETS SUCCESSOR
JOINT POWERS FINANCING AUTHORITY
VICTORVILLE WATER DISTRICT
Regular Meeting Minutes
Tuesday, November 1, 2022
5:00 p.m. Closed Session
6:00 p.m. Regular Session
5:00 p.m. Closed Session
Call to Order
Roll Call
Present: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
Absent: None
Public Comments for Closed Session Items
None
Declaration of Closed Session Item(s) by City Attorney
City Attorney Andre de Bortnowsky announced four (4) closed session items as set forth on the agenda.
CITY COUNCIL
A. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Pursuant to Government Code § 54956.9(d)(1)
Case name unspecified: (Disclosure would jeopardize existing settlement negotiations)
B. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Pursuant to Government Code § 54956.9(d)(1)
Case name unspecified: (Disclosure would jeopardize existing settlement negotiations)
C. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Pursuant to Government Code § 54956.9(d)(1)
Case name unspecified: (Disclosure would jeopardize existing settlement negotiations)
D. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Pursuant to Government Code § 54956.9(d)(1)
Case name unspecified: (Disclosure would jeopardize existing settlement negotiations)
Recess to Closed Session
6:00 p.m. Regular Session
Call to Order
Roll Call
Present: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
Absent: None
Also Present:
City Manager Keith C. Metzler, Deputy City Manager Sophie Smith, Deputy City Manager Jenele Davidson, City Clerk Jennifer Thompson, City Attorney Andre de Bortnowsky
Closed Session Announcements by the City Attorney
City Attorney Andre de Bortnowsky announced four (4) closed session items as set forth on the agenda. There were no reportable actions with respect to these items.
Invocation: Pastor Dane Davis of Impact Christian Church
Pledge of Allegiance: Police Captain John Wickum
City Clerk Presents Agenda/Revisions to Agenda
Agenda presented with no revisions reported.
The Chair declared that this meeting will be adjourned in memorial to Richard “Bo” Bochicchio, who passed away Monday evening October 24th. He was honored last year by the Victorville City Council for his tremendous contributions to our community through his decades of service as a Citizen On Patrol.
Conflict of Interest Declarations
There were no conflicts of interest reported.
Introduction to Public Comments
Mayor Jones provided an opening statement regarding public comments.
Public Comments
The following people spoke:
David and Janet spoke on general items.
CONSENT CALENDAR
1. Public Works Quarterly O&M Statistics – Quarter 1 of Fiscal Year 2022-2023
Recommendation:
That the Honorable City Council review and file.
2. Commercial Demand Schedule No. 8
Recommendation:
That the City Council and Board of Directors ratify Commercial Demand Schedule No. 8 in the amount of $8,676,767.68, covering Electronic Fund Transfers No. 332019 through 332155 and Warrant No. 787583 through 787769 for 10/05/2022 through 10/12/2022 and Wi re Transfer dated 10/12/2022, per the adopted budget for Fiscal Year 2022- 2023 for the period covering July 1, 2022 through June 30, 2023.
3. Payroll Warrant List
Recommendation:
That the City Council and Board of Directors ratify Payroll Demand Schedule No. 3B for Payroll Period September 02, 2022, through September 16, 2022, in the amount of $1,859,418.32 covering Check Nos. 33084 through 33099, including Vendor checks. Please no te employee Check Nos. 33086 & 33089 have a live Check and an EFT Advice. Also included are Advice Nos. 292343 through 292815, per adopted budget for Fiscal Year 2022- 2023 (period covering July 1, 2022, through June 30, 2023).
4. CalRecycle Local Government Waste Tire Cleanup Grant – Budget Amendment
Recommendation:
That the Honorable City Council adopt Resolution No. 22-116, approving a budget amendment for Fiscal Year 2022-2023 to appropriate $61,340.00 in both revenue and expenditures related to the Cycle 22-23 Local Government Waste Tire Cleanup Grant as awarded by CalRecycle.
5. Full Release of Labor and Materials Securities for Case No. ESUB19-00003
Recommendation:
That the City Council approve the full release of the Labor and Materials securities for case ESUB19-00003.
Questions and comments ensued
Motion was made to approve staff recommendations for Consent Calendar items 1 through 5
Moved: Mayor Pro Tem Irving
Seconded: Council Member Becerra
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
WRITTEN COMMUNICATIONS
6. Doris Davies Recreation Center Roof Restoration Project, Change Order No. 1
Recommendation:
That the Honorable City Council:
(1) Adopt Resolution No. 22- 120 approving an additional appropriation of $32,749.30 for the Doris Davies Recreation Center Roof Restoration Project in the Fiscal Year 2022/202 3 annual budget; and
(2) Approve Change Order No. 1 to the Construction Agreement with 4 Seasons Roofing, Inc. for the Doris Davies Recreation Center Roof Restoration Project in the amount of $89,960.00.
Questions ensued
Motion was made to approve staff recommendations
Moved: Mayor Pro Tem Irving
Seconded: Council Member Gomez
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
7. CalRecycle SB 1383 Organic Waste Recycling Grant Payment Program
Recommendation:
That the Honorable City Council adopt Resolution No. 22-117 to:
(1) Authorize acceptance of the CalRecycle SB 1383 Organic Waste Recycling Grant; (2) Authorize the City Manager or his designee to process all documents required for program administration;
(3) Ratify the associated expenditure plan; and
(4) Approve a budget amendment for Fiscal Year 2022-2023 to appropriate $167,748.00 in both revenue and expenditures related to the SB 1383 Organic Waste Recycling Grant as awarded by CalRecycle.
Questions ensued
Motion was made to approve staff recommendations
Moved: Council Member Becerra
Seconded: Mayor Pro Tem Irving
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
8. Inclusion of Part-time Employees in the Sick Leave Yearly Payoff Program
Recommendation:
That the Honorable City Council Adopt Resolution No. 22- 119 to Re -establish Part -Time Employees to Participate in the Sick Leave Yearly Payoff Program
Questions ensued
Motion was made to approve staff recommendation
Moved: Council Member Becerra
Seconded: Mayor Pro Tem Irving
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
9. General Services Provider Agreement for a Library Kiosk
Recommendation:
That the Honorable City Council approve the General Services Provider Agreement with EnvisionWare, Inc. in the amount of $221,585.41 to furnish, deliver, install and maintain a remote library kiosk and canopy at Sunset Ridge Park.
Questions ensued
Motion was made to approve staff recommendation
Moved: Mayor Pro Tem Irving
Seconded: Council Member Becerra
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
10. Consultant/Professional Services Provider Agreement with Community Works Design Group
Recommendation:
That the Honorable City Council approve the Consultant/Professional Services Provider Agreement with Community Works Design Group in the amount of $219,572.50 for the landscape and civil design work for the Eva Dell Park renovation project.
Questions ensued
Motion was made to approve staff recommendation
Moved: Council Member Becerra
Seconded: Mayor Pro Tem Irving
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
11. City Manager Reports
City Manager Keith C. Metzler discussed the A nnual Veteran’s Day Celebration. There will be a freedom run, parade, and ceremony that will take place Friday, November 11th from 8:45 a.m. to 10:30 a.m. in Old Town on the intersection of 7th Avenue and Forest Avenue
The Public Works Environmental Program Shred Fest will be conducted on Saturday, November 5th from 8:00 a.m. to 12:00 p.m. that will take place at the Victor Valley Materials Recovery Facility. There will be an opportunity for members of the community to shred up to four boxes of documents and there will be free recycling of appliances, electronics, and mattresses.
The Old Town watermain replacement project will start next week. The construction will start in the streets intersecting with E Street. Later, watermains, streets, and other areas of Old Town will be replaced. At SCLA, there will be a water line replacement project along the flight line that will begin next week as well. Both projects are expected to be completed in the Spring of 2023.
Framing for the new four-story hotel, Avid, will begin the week of November 7th. The Dollar Tree, southeast of Village Drive and North of Mojave, is currently under construction.
12. Discussion and Possible Action Regarding Upcoming Agenda Items
None
13. Reports from Council Members
Councilmember Becerra thanked the staff and City Manager Keith C. Metzler, for a job well done at the Trunk-or-Treat event.
Councilmember Gomez spoke about her way of meeting new people such as door knocking, meeting people on the street, and giving out her phone number.
Mayor Pro Tem Irving thanked every Veteran for their service and wished them a Happy Veteran’s Day.
Mayor Jones discussed her attendance to the Victor Valley Wastewater Reclamation Authority meeting, as well as various events, ribbon cuttings, and celebrations for St. Joan of Arc, Excelsior Charter School, Sixth Street Prep, and the rededication planting of the new tree at Mojave Narrows Regional Park.
Adjournment
Mayor Jones adjourned the meeting at 6:58 p.m.
Attest:
________________________________ ____________________________________ Debra Jones, Mayor Jennifer Thompson, City Clerk
Attachment B
Minutes of the November 15,
2022, Regular City Council
Meeting
City Council Chambers
14343 Civic Drive
Victorville, CA
www.victorvilleca.gov
VICTORVILLE CITY COUNCIL
VICTORVILLE LIBRARY BOARD OF TRUSTEES
SOUTHERN CALIFORNIA LOGISTICS RAIL AUTHORITY
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
THE CITY AS HOUSING ASSETS SUCCESSOR
JOINT POWERS FINANCING AUTHORITY
VICTORVILLE WATER DISTRICT
Regular Meeting Minutes
Tuesday, November 15, 2022
5:00 p.m. Closed Session
6:00 p.m. Regular Session
6:00 p.m. Regular Session
Call to Order
Roll Call
Present: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
Absent: None
Also Present:
City Manager Keith C. Metzler, Deputy City Manager Sophie Smith, Deputy City Manager Jenele Davidson, City Clerk Jennifer Thompson, City Attorney Andre de Bortnowsky
Invocation: Elder Steven Hailey of Destiny Christian Church
Pledge of Allegiance: Police Lieutenant Tim Visosky
City Clerk Presents Agenda/Revisions to Agenda
Agenda presented with no revisions reported.
Conflict of Interest Declarations
There were no conflicts of interest reported.
Introduction to Public Comments
Mayor Jones provided an opening statement regarding public comments.
Public Comments
The following people spoke:
Miller Marks spoke on general items
Matthew Lovacheff spoke on general items
Janet Kwan spoke on general items
Blanca Gomez spoke on general items
PUBLIC HEARING(S)
1. Consideration of City Council Ordinance No. 2432 with an environmental exemption, approving various amendments to Chapter 5 of Title 16 of the Victorville Municipal Code to adopt State of California mandated 2022 Title 24 Building Codes and other standards; update sections to reference the City’s recently adopted Master Fee Schedules; and revise sections relating to Development Impact Fees
Recommendation:
That the Honorable City Council conduct a public hearing, receive public testimony, and take the following actions:
(1) Find the Municipal Code Amendment exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3); (2) Introduce Ordinance No. 2432 for adoption and first reading by title only; and (3) Waive further reading in full of proposed Ordinance No. 2432.
Questions ensued
The Chair opened the Public Hearing
There were no speakers
The Chair closed the Public Hearing
Motion was made to approve staff recommendations
Moved: Council Member Becerra
Seconded: Mayor Pro Tem Irving
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
CONSENT CALENDAR
2. Substitution of Trustee and Deed of Reconveyance for Residential Curb Appeal Program Case No. 18-07-18 (15469 Nisqualli Road, Victorville, CA 92395) and Acceptance and Reallocation of Associated Program Income Funds
Recommendation:
That City Council take the following actions regarding Residential Curb Appeal Program (RCAP) Case No. 18-07-18:
(1) Approve the Substitution of Trustee and Deed of Reconveyance; (2) Confirm the required termination and release of the original Declaration of Covenants, Conditions and Restrictions (CC&Rs);
(3) Authorize the execution of the Substitution of Trustee and Deed of Reconve yance as well as the Termination and Release of the original CC&Rs by the Deputy City Manager; (4) Accept the payoff of the loan receivable to the Residential Rehabilitation Program Income Account;
(5) Adopt Resolution No. 22- 118 amending the annual budget for fiscal year 2022- 2023, reallocating the subject $16,783.20 of Residential Curb Appeal Program funds to the Residential Rehabilitation Program Income Account.
3. Victorville Water District Operating Results Report for the Fourth Quarter of Fiscal Year 2022
Recommendation:
That the Honorable Victorville Water District Board of Directors review and file.
4. Notice of Completion - Air Exchange, Inc.
Recommendation:
That the Honorable City Council
(1) accept as complete and approve the Notice of Completion for the Fire Station Air Exchange/Plymovent Exhaust System Conversions, Project CCT22-072 and (2) authorize the Fire Chief to execute the Notice of Completion.
5. Commercial Demand Schedule No. 9
Recommendation:
That the City Council and Board of Directors ratify Commercial Demand Schedule No. 9 in the amount of $12,261,770.45, covering Electronic Fund Transfers No. 332156 through 332392 and Warrant No. 785983 through 787770 for 10/19/2022 through 10/26/2022 and Wire Transfers dated 10/18/2022 through 10/26/2022, per the adopted budget for Fiscal Year 2022- 2023 for the period covering July 1, 2022 through June 30, 2023.
6. Payroll Warrant List
Recommendation:
That the City Council and Board of Directors ratify Payroll Demand Schedule No. 3C for Payroll Period September 16, 2022, through September 30, 2022, in the amount of $1,898,330.02 covering Check Nos. 33100 through 33113, including Vendor checks. Please no te employee Check No. 33103 has a live Check and an EFT Advice. Also included are Advice Nos. 292816 through 293283, per adopted budget for Fiscal Year 2022- 2023 (period covering July 1, 2022, through June 30, 2023).
7. Quarterly Investment Report as of September 30, 2022
Recommendation:
That the City Council/Board of Directors receive and file the attached Quarterly Investment Report as of September 30, 2022.
8. Code Compliance Department Fiscal Year 2022/2023 Quarter 1 Activity Reports
Recommendation:
That the Honorable City Council review and file.
9. Building Division Quarterly Activity Report
Recommendation:
That the Honorable City Council review and file.
10. Settlement Agreement between the City of Victorville and Alex Mandoyan
Recommendation:
That the Honorable City Council approve the Citation Settlement Agreement by and between Alex Mandoyan and the City of Victorville in regard to Citation No. 25861 and Superior Court Case No. CIVSB2200951.
11. Minutes of the August 16, 2022, and September 6, 2022, Regular City Council Meetings
Recommendation:
That the Honorable City Council approve the minutes of the Regular City Council Meetings held on August 16, 2022, and September 6, 2022
12. Designation of Applicant's Agent Resolution for Non-State Agencies
Recommendation:
Therefore, staff recommends that the Honorable City Council approve the execution and submittal of the California Office of Emergency Services (Cal OES) 130 Form in order to pursue reimbursement for losses due to any disaster, cost recovery, or grant opportunity over the next three (3) years.
Motion was made to approve staff recommendations for Consent Calendar items 2 through 12
Moved: Mayor Pro Tem Irving
Seconded: Council Member Becerra
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
WRITTEN COMMUNICATIONS
13. Green Tree Blvd. Extension and Bear Valley Rd. Overhead at BNSF Railroad Projects - Amendments to Project Funding Agreements
Recommendation:
That the Honorable City Council approve amendments to project funding agreements with San Bernardino County Transportation Authority (SBCTA) to extend the terms until December 31, 2024:
(1) Amendment No. 7 to the Project Funding Agreement for the Green Tree Blvd. Extension Project; and
(2) Amendment No. 2 to the Project Funding Agreement for the Bear Valley Rd. Overhead at BNSF Railroad Project.
Questions ensued
Motion was made to approve staff recommendations
Moved: Mayor Pro Tem Irving
Seconded: Council Member Becerra
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
14. Award of Construction Agreement to Aqua Source - Doris Davies Pool Re-plaster
Recommendation:
That the Honorable City Council award a Construction Agreement to Aqua Source for the Doris Davies Pool Re-plaster, Project CC23-034-1, in the amount of $166,612.00.
Questions ensued
Motion was made to approve staff recommendation
Moved: Council Member Becerra
Seconded: Mayor Pro Tem Irving
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
15. Adoption of Resolution No. 22 -121 Regarding Range Change for Fire Mechanic, Senior Fire Mechanic, and Lead Mechanic positions
Recommendation:
That the Honorable Victorville City Council adopt Resolution No. 22-121, updating the pay range for the positions of Fire Mechanic, Senior Fire Mechanic, and Lead Mechanic.
Questions ensued
Motion was made to approve staff recommendation
Moved: Council Member Becerra
Seconded: Mayor Pro Tem Irving
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
16. City Manager Reports
City Manager Keith C. Metzler spoke about Santa’s mailbox that will be located at the Hook Community Center from November 14 th to December 9 th between the hours of 8:00 a.m. and 5:00 p.m., Monday through Thursday and 8:00 a.m. to 4:00 p.m. on Fridays.
The free annual Christmas Parade, hosted by Kiwanis Club, is going to be on Saturday, December 3rd at 10:00 a.m. along 7 th Street from La Paz to Forest Avenue. The Festival of Lights is also on Saturday, December 3rd from 4:00 p.m. to 7:00 p.m. located at City Hall.
National Recycling Day is on November 17th at the Victorville City Library from 4:00 p.m. to 5:00 p.m. at no cost.
There will be a spay and neuter clinic on December 3rd at the Hesperia Event Services Facility.
Free dump day is on Saturday, November 19th from 8:00 a.m. to 1:00 p.m. at the former Victor Junior High School on Forest Avenue.
Notice of Funding Availability ( NOFA) is now out for Community Development Block Grant (CDBG) and Home Grant applications. There will be mandatory workshops for those that are interested in applying for these grants.
Chipotle and Jersey Mike’s are under construction and are going to be located at the Crossroads Center.
17. Discussion and Possible Action Regarding Upcoming Agenda Items
None
18. Reports from Council Members
Councilmember Gomez spoke about her privilege of being able to meet and speak with many members of the community.
Mayor Pro Tem Irving reported that Galley Fish Tacos and Ladies TKO have partnered to collect toys-for-tots.
Mayor Jones reported her attendance at the ribbon cutting and grand opening for St. Martin High Desert. She was also chosen to MC at the San Bernardino County Transportation Authority for the annual City County Conference. Mayor Jones also wished everyone a Happy Thanksgiving.
Councilmember Becerra reported that the City of Victorville joined the High Desert Corridor JPA.
She was voted in as Vice Chair.
Adjournment
Mayor Jones adjourned the meeting at 7:16 p.m.
Attest:
________________________________ ____________________________________ Debra Jones, Mayor Jennifer Thompson, City Clerk
Attachment C
Minutes of the December 6, 2022,
Regular City Council Meeting
City Council Chambers
14343 Civic Drive
Victorville, CA
www.victorvilleca.gov
VICTORVILLE CITY COUNCIL
VICTORVILLE LIBRARY BOARD OF TRUSTEES
SOUTHERN CALIFORNIA LOGISTICS RAIL AUTHORITY
SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
THE CITY AS HOUSING ASSETS SUCCESSOR
JOINT POWERS FINANCING AUTHORITY
VICTORVILLE WATER DISTRICT
Regular Meeting Minutes
Tuesday, December 6, 2022
5:00 p.m. Closed Session
6:00 p.m. Regular Session
5:00 p.m. Closed Session
Call to Order
Roll Call
Present: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
Absent: None
Public Comments for Closed Session Items
None
Declaration of Closed Session Item(s) by City Attorney
City Attorney Kevin Spaulding announced one (1) closed session item as set forth on the agenda.
CITY COUNCIL
A. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Pursuant to Government Code § 54956.9(d)(1)
Case name unspecified: (Disclosure would jeopardize existing settlement negotiations)
Recess to Closed Session
6:00 p.m. Regular Session
Call to Order
Roll Call
Present: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
Absent: None
Also Present:
City Manager Keith C. Metzler, Deputy City Manager Sophie Smith, Deputy City Manager Jenele Davidson, City Clerk Jennifer Thompson, Deputy City Attorney Kevin Spaulding
Closed Session Announcements by the City Attorney
Deputy City Attorney Kevin Spaulding announced one (1) closed session item as set forth on the agenda. There were no reportable actions with respect to this item.
Invocation: Evangelist Debbie Bennett of Friendly Temple Church of God & Christ
Pledge of Allegiance: Police Captain John Wickum
City Clerk Presents Agenda/Revisions to Agenda
City Clerk announced one (1) revision. Item #12 is being pulled from the agenda and is to be presented at a later date.
Conflict of Interest Declarations
There were no conflicts of interest reported.
Introduction to Public Comments
Mayor Jones provided an opening statement regarding public comments.
Public Comments
The following people spoke:
Janet Kwan spoke on general items
Mario Felix spoke on general items
Lydia Marsala spoke on general items
Nate Satrape spoke on general items
PUBLIC HEARING(S)
1. Award of Construction Contract – Guardrail Project
Recommendation:
That the Honorable City Council:
(1) Adopt Resolution No. 22- 122 to amend the Fiscal Year 2022/2023 budget appropriating $469,890.00 from a Highway Safety Improvement Program (HSIP) grant; (2) Approve the Notice of Exemption; and
(3) Award a construction contract to Danny C. Hubbs Construction Inc., in the amount of $758,175.00 for the Guardrail Project.
Questions ensued
The Chair opened the Public Hearing
There were no speakers
The Chair closed the Public Hearing
Motion was made to approve staff recommendations
Moved: Council Member Becerra
Seconded: Mayor Pro Tem Irving
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
2. Award of Construction Contract – Old Town Sidewalk Connectivity Project – Phase 1
Recommendation:
That the Honorable City Council:
(1) Approve the Notice of Exemption for the Old Town Sidewalk Connectivity Project – Phase 1; and
(2)
Award a construction contract to LCR Earthwork & Engineering, Corp., in the amount of $775,879.00 for the Old Town Sidewalk Connectivity Project – Phase 1.
Questions ensued
The Chair opened the Public Hearing
The following people spoke:
Mario Felix spoke in support
The Chair closed the Public Hearing
Motion was made to approve staff recommendations
Moved: Council Member Becerra
Seconded: Council Member Gomez
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
3. Introduction of City Council Ordinance No. 2433 repealing and amending various chapters and sections of Title 8 (Fire) of the Victorville Municipal Code
Recommendation:
That Your Honorable City Council:
(1) Open and conduct a public hearing to receive citizen comments regarding Ordinance No. 2433 and the Municipal Code Amendments included therein; (2) Introduce Ordinance No. 2433 for adoption and first reading by title only; and (3) Waive further reading in full of proposed Ordinance No. 2433
Questions ensued
The Chair opened the Public Hearing
There were no speakers
The Chair closed the Public Hearing
Motion was made to approve staff recommendations
Moved: Council Member Gomez
Seconded: Mayor Pro Tem Irving
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
CONSENT CALENDAR
4. Payroll Warrant List
Recommendation:
That the City Council and Board of Directors ratify Payroll Demand Schedule No. 4A for Payroll Period September 30, 2022, through October 14, 2022, in the amount of $1,851,199.33 covering Check Nos. 33114 through 33134, including Vendor checks. Please note employee Check No. 33123 has a live Check and an EFT Advice. Also included are Advice Nos. 293284 through 293755, per adopted budget for Fiscal Year 2022- 2023 (period covering July 1, 2022, through June 30, 2023).
5. Second Reading of Ordinance No. 2432
Recommendation:
That the City Council adopt, by second reading, Ordinance No. 2432 approving various amendments to Chapter 5 of Title 16 of the Victorville Municipal Code to adopt State of California mandated 2022 Title 24 Building Codes and other standards; update sectio ns to reference the City’s recently adopted Master Fee Schedules; and revise sections relating to Development Impact Fees.
6. Commercial Demand Schedule No. 10
Recommendation:
That the City Council and Board of Directors ratify Commercial Demand Schedule No. 10 in the amount of $11,722,698.43, covering Electronic Fund Transfers No. 332393 through 332618 and Warrant No. 787971 through 788240 for 10/27/2022 through 11/16/2022 and Wire Transfers dated 11/04/2022, per the adopted budget for Fiscal Year 2022- 2023 for the period covering July 1, 2022 through June 30, 2023.
7. Notice of Completion – Seventh Avenue and Arrowhead Drive Road Improvement
Recommendation:
That the Honorable City Council accept as complete and approve the Notice of Completion for the Seventh Avenue and Arrowhead Drive Road Improvement project.
8. Gas Facilities Contract – Lot 19 and Lot 44 Electric Facilities Contract – Lot 43A, Lot 43B and Lot 44
Recommendation:
That the Honorable City Council accept and approve the following Facilities Contracts and authorize execution by the City Manager: Gas Facilities Contract with Prologis, Inc. for Lot 19 and Lot 44 Electric Facilities Contract with Prologis Inc. for Lot 43A and Lot 44 Electric Facilities Contract with Faring Capital for Lot 43B
9. Substitute of Surveyor of Record for Tract Map No. 18100
Recommendation:
That the Honorable City Council approve Ludwig Engineering as the Substitute Surveyor for Tract Map No. 18100.
10. Notice of Completion – Doris Davies Recreation Center Roof Restoration, Project CC22-104
Recommendation:
That the Honorable City Council accept as complete and approve the Notice of Completion for the Doris Davies Recreation Center Roof Restoration, Project CC22-104.
11. Settlement Agreement between the City of Victorville and Ron Nguyen
Recommendation:
That the Honorable City Council approve and authorize the execution of the Citation Settlement Agreement by the City Manager and between Ronald Nguyen and the City of Victorville in regard to Citation No. 25523.
Motion was made to approve staff recommendations for Consent Calendar items 4 through 11
Moved: Council Member Becerra
Seconded: Mayor Pro Tem Irving
Motion passed, with Council Member Gomez voting no on item 5
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones Noes: Council Member Gomez voting no on item 5
WRITTEN COMMUNICATIONS
12. Award of a Consultant / Professional Services Provider Agreement to Utility Service Co., Inc.
Recommendation:
That the Honorable Victorville Board of Directors (“Board”) approve the award of a Consultant / Professional Services Provider Agreement by and between the Victorville Water District and Utility Service Co., Inc., for the ongoing maintenance of the Victorville Water District’s 26 water tanks, Project No. ESC23-029, in the amount not to exceed $21,712,177 over a 10-year period.
Item was pulled from the agenda
The Chair invited a motion to consider items 13 through 15 concurrently.
Moved: Mayor Pro Tem Irving
Seconded: Council Member Becerra
Comments ensued
Motion passed 3-1
Ayes: Council Member Becerra, Mayor Pro Tem Irving, Mayor Jones Noes: Council Member Gomez
13. 2022 CPRS Statewide Training and Funding Initiative, Brentwood Park Playground Replacement
Recommendation:
That the Honorable City Council award the purchase and installation of playground equipment to GameTime for the replacement of the playground at Brentwood Park.
14. 2022 CPRS Statewide Training and Funding Initiative, Eva Dell Park Playground Replacement
Recommendation:
That the Honorable City Council award the purchase and installation of playground equipment to GameTime for the replacement of the playground at Eva Dell Park.
15. 2022 CPRS Statewide Training and Funding Initiative, Center Street Park Playground Replacement
Recommendation:
That the Honorable City Council:
(1) Adopt Resolution No. 22- 125 accepting a donation of funds from Benefit Everyone, Assist Recreation and Sports (B.E.A.R.S.) for the purchase and installation of a playground at Center Street Park and amending the annual budget for Fiscal Year 2022-2023; and (2) Award the purchase and installation of playground equipment to GameTime for the replacement of the playground at Center Street Park.
Questions ensued
Motion was made to approve staff recommendations for items 13 through 15
Moved: Council Member Becerra
Seconded: Council Member Gomez
Comments ensued
Motion passed 4-0
Ayes: Council Member Becerra, Council Member Gomez, Mayor Pro Tem Irving, Mayor Jones
16. City Manager Reports
City Manager Keith C. Metzler discussed the Kid’s Club Winter Camp that will be occurring December 19th through 23rd and Dec 26th through 30th located at the Hook Community Center.
There will be two sessions, where people may either choose half day or full day.
There will be a free snow globe craft event scheduled at the Victorville City Library on December 8th between the hours of 4:00 p.m. and 5:00 p.m.
The process for CDBG and H ome Grant applications has begun and there will be technical assistance workshops for those interested in applying for either of the two grant programs. The next systems workshop will be on Tuesday, December 13th at 10:00 a.m. located at City Hall in conference room D.
17. Discussion and Possible Action Regarding Upcoming Agenda Items
None
18. Reports from Council Members
Council Member Gomez reported everything she is doing for the community such as door knocking and advocating. She also discussed the various languages she uses to accommodate many people in the community.
Mayor Pro Tem Irving thanked various agencies such as the Victor Valley Rescue Mission, Delta Sigma Theta Sorority Incorporated, and the Community Action Partnership of San Bernardino for allowing her to work and partner with them to serve the community during the month of November. They were able to secure 475 thanksgiving turkeys , serving over one thousand people in the High Desert Region. On November 19th, she worked alongside volunteers for the Victor Valley Rescue Mission Great Turkey Giveaway at the Fairgrounds.
Mayor Jones reported on her participation in the Victor Valley Wastewater Reclamation Authority, the SBCTA Mountain Desert Policy Committee, the Fi re Academy G raduation for Victorville’s scholarship recipients, the PFAL Christmas party for the youth, Exquadrums 20 Year Celebration of Innovation, and the surprise announcement for Darron Poulsen to receive an Accolade Award with the Victor Valley College Foundation. She also wanted to thank the Victorville staff for the Christmas parade and the Christmas Tree Lighting event at City Hall.
Adjournment
Mayor Jones adjourned the meeting at 7:08 p.m.
Attest:
________________________________ ____________________________________ Debra Jones, Mayor Jennifer Thompson, City Clerk
Item Number: 12
City Council / Board of Directors
Written Communications
Meeting of: February 7, 2023
Submitted By:
Brenda Hampton, Director of Electric Utility Services
Subject:
Approval to execute an Interconnection Agreement (“IA”) with Kern River Gas Transmission Company (“KRGT”) for a natural gas pipeline interconnection, meter station facilities, odorizer, and Victorville Municipal Utility Services (“VMUS”) pipeline extension construction project with an environmental exemption located at the Southern California Logistics Airport (“SCLA”).
Recommendation:
That the Honorable City Council:
1. Find the project categorically exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15303 (New Construction or Conversion of Small Structures) and approve the filing of the attached Notice of Exemption;
2. Adopt Resolution No. 23-008 approving an additional appropriation for the Gas Utility Fund for Fiscal Year 2022-2023 annual budget; and
3. Approve the Interconnection Agreement with KRGT in an amount not to exceed $1,112,171 and authorize the Mayor to execute the agreement, subject to such non-substantive changes as may be necessary and approved by the City Manager and the City Attorney prior to said execution.
Fiscal Impact:
This agreement, if approved by the Victorville City Council, will result in a Fiscal Impact of $1,112,171. Additional appropriations will be required from the Gas Fund (419) and there are sufficient funds available to cover the expenses for the Kern River Interconnection Project. The additional appropriation of $1,112,171 will be allocated to 4190210-55080-30067 (KERN RIVER INTERCONNECTION) from the funds available in 419-11100 (GAS - CASH IN BANK). This amount will be reimbursed at a later date from a construction loan, estimated at $2,000,000, from the Southern California Logistics Airport Authority.
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Account Amount to Allocate from Gas Fund 419
4190210-55080-30067
(Kern River Interconnection)
ADD $1,112,171 to Project 30067
Strategic Plan Goal:
Invest in Infrastructure
Background:
The City of Victorville has previously created and currently operates a municipally owned utility, operating as VMUS, which provides gas and electric service to commercial and industrial customers within its service area at the SCLA.
VMUS is currently a wholesale natural gas customer of Southwest Gas Corporation (“SWG”) and is subject to the SWG GS-VIC City of Victorville Gas Service tariff rates. In January 2022, SWG transportation rates (Total Charges and Adjustments) were increased by 67%. In January 2023, SWG had an additional increase to transportation rates of 27.5%. VMUS has been absorbing these increases to minimize rate impacts to its customers but cannot continue to do so. Passing through these increased costs to VMUS customers at the SCLA will significantly raise the natural gas cost for VMUS customers.
VMUS has therefore been exploring alternative natural gas supply sources in an effort to continue providing reliable natural gas service to its customers at competitive rates. An opportunity has arisen for VMUS to use an alternative route for gas supply and transport through a pipeline owned by KRGT. VMUS’ annualized cost to construct, support, and operate a bypass facility through an interconnect with KRGT is projected to be significantly lower than the current rate paid to SWG for comparable service. A workshop was held on January 31, 2023, at which time the City Council was provided a presentation with additional background regarding the KRGT interconnection.
Discussion:
The City of Victorville wishes to pursue a contract with KRGT to construct and own/operate a meter station facility located at the SCLA. The construction of this infrastructure will provide a new natural gas delivery point for the City, enabling VMUS to have an alternate supply of natural gas through KRGT’s interstate transmission system.
The construction of this meter station will allow connection of the existing KRGT infrastructure with the existing VMUS natural gas distribution system.
The cost for this infrastructure authorized by the IA, if approved by the City Council, will be an amount not to exceed $1,112,171. Resolution No. 23-008 is requesting an amendment to the 2022-2023 approved budget for additional appropriations from the Gas fund to fund this interconnection. There are sufficient funds available in the Gas fund to allocate for this interconnection. The initial prepayment of $250,000 will be due within 15 calendar days following the execution of the IA, the second prepayment of $710,000 will be due no later than 60 calendar days after the initial prepayment is made and the final 2 9
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payment of $152,171 will be due 30 days after completion of the interconnection facilities.
Please refer to Exhibit B of the IA for the Interconnect Facilities Cost Estimate.
This connection will provide the opportunity for a higher-pressure distribution option for VMUS customers and should result in future lower overall gas rates for the tenants at SCLA. In addition, this move will support the projected growth of SCLA facilities over the long term.
The IA is the first step in the transition from SWG to KRGT. The execution of this agreement is time sensitive. The KRGT pipeline feeds the High Desert Power Project (“HDPP”). The construction enabling VMUS to connect to KRGT’s pipeline will need to be done during the scheduled maintenance outage of HDPP. The outage window for the construction begins on March 23, 2023. Once the IA is executed, VMUS will pursue the additional steps needed to complete the connection to the existing natural gas infrastructure and establish the appropriate agreements for the procurement of natural gas, which will be presented to City Council at a later date.
This project is exempt from CEQA pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15303 (New Construction or Conversion of Small Structures). These exemptions provide for the alteration of existing facilities of private and publicly owned utilities and construction of limited numbers of new, small facilities or structures, including water main, sewage, electrical, gas, and other utility extensions. The proposed new construction involves small facilities and minor extensions of currently existing natural gas utility infrastructure as shown on the Project Site Diagram (Attachment C). The project consists of a metering station inside the existing KRGT metering facility, an approximate 20’x20’ odorizer skid, approximately 300’ of 6” pipeline, and a VMUS-owned metering station. The project site is zoned for industrial use and located in the SCLA Specific Plan area. Surrounding uses are the HDPP, the KRGT gas pipeline yard, fenced-in utility space, and an access road. See the attached Notice of Exemption for details.
Based on the expected savings to our customers, the added flexibility of a high-pressure distribution option, the ability to meet the current growth and future customer expansions at SCLA and to continue to attract new industrial and commercial companies that could bring prosperity and jobs to the community, staff recommends that City Council make the CEQA exemption finding and authorize filing of the attached Notice of Exemption, approve adoption of Resolution No. 23-008 to amend the annual budget for Fiscal year 2022-2023, and authorize the Mayor to execute the IA, subject to such non-substantive changes as may be necessary and approved by the City Manager and the City Attorney prior to said execution.
Staff remains available for any questions you may have.
Attachments: A. Resolution No. 23-008
B. Interconnection Agreement
C. Project Site Diagram
D. Notice of Exemption
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ATTACHMENT A
Resolution No. 23-008
RESOLUTION NO. 23-008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VICTORVILLE AMENDING THE ANNUAL BUDGET FOR FISCAL YEAR 2022-2023
WHEREAS, the City Manager of the City of Victorville did heretofore submit to the City Council an estimate of the expenditures and revenues of the City departments and offices, together with a proposed budget for the fiscal year 2022-2023; and
WHEREAS, copies of said budget were prepared and distributed to the City Council, approved by the City Council prior to June 30, 2022, and have been available for the inspection by the public in the office of the City Clerk of the City of Victorville; and
WHEREAS, after preparation of the budget, a need to amend the budget is being recommended to the Council for approval; and
WHEREAS, the City Manager or his designee will provide all necessary justification for the budget amendment as an attachment to this resolution or in the associated City Council agenda report.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the annual budget for the fiscal year 2022-2023 for the City of Victorville be hereby amended to reflect a change in the amounts and associated accounts listed below and as described in the corresponding Agenda Item.
Account Amount Adjusted
4190210-55080-30067
(Kern River Interconnection)
Increase by $1,112,171
SECTION 2. That copies of such amended budget, certified by the City Clerk, shall be filed with the auditors of the City of Victorville and in the office of the City Clerk for public inspection and certified copies thereof shall be made available for use by City departments, offices and subsidiary districts of the City.
ATTACHMENT B
Interconnection Agreement
INTERCONNECTION AGREEMENT
COV METER STATION
This INTERCONNECTION AGREEMENT (this “ Agreement”) is made and entered into as of _____________________, 20 23 (“Effective Date ”), by and between KERN RIVER GAS TRANSMISSION COMPANY, a Delaware Corporation, with an office at 2755 E. Cottonwood Parkway, Salt Lake City, Utah 84121 ( “Kern River ”), and the City of Victorville (“Victorville”), a California municipal corporation and charter city, acting through Victorville Municipal Util ity Services, a municipal utility organized and existing under the laws of the State of California (“ VMUS”), with an address at 14343 Civic Drive, Victorville, CA 92392 (hereinafter VMUS and Victorville shall be collectively referred to as “Connecting Party”). Kern River and Connecting Party are also referred to herein individually as a “ Party” and collectively as the “Parties”.
WITNESSETH
WHEREAS, Kern River owns and operates an interstate natural gas pipeline system extending from receipt points near Opal, Wyoming to delivery points in Utah, Nevada, and California;
WHEREAS, Connecting Party operates a municipal natural gas utility serving retail customers in and around the Southern California Logistics Airport (“SCLA”) and has requested that Kern River construct, establish and operate a new delivery meter station and associated facilities adjacent to the SCLA, as further described in Exhibit A, to facilitate the delivery and measurement of natural gas for delivery by VMUS to retail customers, which facilities are hereinafter referred to, and further defined below, as the (“Interconnect Facilities”); and
WHEREAS, Connecting Party is willing to reimburse Kern River, in accordance with this Agreement, for Actual Costs, as defined below incurred by Kern River in designing, permitting, constructing, commissioning, owning, operating and maintaining the Interconnect Facilities; and
WHEREAS, the Parties desire to set forth herein their respective rights and obligations with respect to the construction, installation, ownership, operation, and maintenance of the Interconnect Facilities and related facilities.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and subject to all of the terms, conditions, and provisions of this Agreement, Kern River and Connecting Party do hereby agree as follows:
ARTICLE I
DEFINITIONS
When used in this Agreement, the capitalized terms set forth below shall have the following meanings:
1.1. “Actual Cost ” shall mean the actual cost of the Interconnect Facilities, as reasonably incurred by K ern River in accordance with Prudent Industry Practice, including but not limited to (i) planning, designing, permitting, land acquisition, materials, labor, contract
and engineering costs , and post construction costs ; (ii) overheads; (iii) Net Income Tax Liability and allowance for funds used during construction, when applicable; (iv) operating and maintenance costs and ad valorem taxes, if applicable ; (v) any reservation charge Credits paid to other shippers by Kern River as a result of any outage caused by the construction of the Interconnect Facilities, if applicable; and (vi) any Gas Loss Cost , if applicable. The Actual Cost is subject to True-Up from time to time during construction of the Interconnect Facilities and, at a minimum, at the end of construction of the Interconnect Facilities.
1.2. “Claims” shall have the meaning set forth in Section 7.6.
1.3. “Connecting Party ’s Data Sharing Equipment ” shall mean cables and such other equipment, Connecting Party, at its sole risk, cost, and expense, may install or cause to be installed as Kern River, in its sole discretion, deems reasonable and necessary for Connecting Party to obtain access to Kern River’s electronic measurement data.
1.4. “Connecting Party’s Facilities” shall mean any and all facilities not owned or operated by Kern River that may be necessary, in the opinion of Connecting Party, to protect and connect Connecting Party ’s facilities to the Interconnect Facilities, to meet applicable regulatory, governmental, and environmental requirements, to meet gas quality requirements, and to protect Connecting Party’s facilities, which may include odorization facilities, pressure regulation, over -pressure protection equipment, liquid separation and gas filtration equipment, and applicable cathodic protection equipment. The Connecting Party’s Facilities will accommodate pressures up to Kern River ’s maximum allowable operating pressure of 1,200 psig, and Connecting Party shall adhere to Title 49 of the Code of Federal Regulations, Section 192.195 and all other applicable federal and state requirements.
1.5. “Corrective Action(s)” shall have the meaning set forth in Section 4.6.
1.6. “Custody Transfer Point ” shall mean the point of interconnection between the Interconnect Facilities and Connecting Party’s Facilities.
1.7. “Delivery Gas” shall mean the natural gas to be delivered from Kern River’s pipeline system into Connecting Party’s Facilities.
1.8. “Design Flow” shall mean Connecting Party ’s requested delivery measurement range of 192 Dth per day (8 Dth per hour) minimum through 4,000 Dth per day (60 Dth per hour) maximum of natural gas, at a design pressure of no less than 500 psig, and not greater than 1,200 psig; provided however, the pressure design assumptions set forth in this Agreement are not to be construed as implying a guaranty of any particular level of pressure during service.
1.9. “Dth” shall mean dekatherm. For the purposes of this Agreement, one dekatherm shall equal one thousand (1,000) standard cubic feet of natural gas based on an assumed heat content of one thousand (1,000) British thermal units per cubic feet.
1.10. “FERC” shall mean the Federal Energy Regulatory Commission.
1.11. “FERC Interest Rate ” shall mean the refund interest rate as specified in 18 C.F.R. §154.501(d).
1.12. “Gas Loss Cost ” shall mean the costs of any natural gas losses incurred by Kern River which are related to the installation of the Interconnect Facilities.
1.13. “Imaged Document” shall have the meaning set forth in Section 7.22.
1.14. “Initial Prepayment” shall mean the payment from Connecting Party to Kern River that represents the estimated cost to perform the Preconstruction Activities.
1.15. “Interconnect Facilities” shall mean those facilities and equipment set forth on Exhibit A including, but not limited to, a meter station and associated facilities owned by Kern River capable of delivering the Design Flow.
1.16. “Interconnect Facilities Cost Estimate” shall mean the estimated cost set forth in Exhibit [C], determined in Kern River’s sole and reasonable discretion, to permit, construct, own, and operate the Interconnect Facilities.
1.17. “Location” shall mean Section 24, Township 6 North , Range 5 West ; approximately
34.595928 latitude, -117.363103 longitude. CONFIDENTIAL INFORMATION
1.18. “MAOP” shall mean maximum allowable operating pressure, in pounds per square inch gauge (“psig”).
1.19. “Measurement Services” shall have the meaning set forth in Section 5.1.
1.20. “Necessary Approvals” shall mean an order or approval that has become final and is no longer subject to rehearing or appeal regarding the construction and operation of the Interconnect Facilities, issued by FERC, any federal, state, local, or municipal agency, or any other governmental authority in a form and substance reasonably satisfactory to Kern River; provided, however, at Kern River ’s sole discretion, Kern River may waive a Necessary Approval . Necessary Approvals shall specifically include, but shall not be limited to, all rights of way, permits and authorizations for the Interconnect Facilities.
1.21. “Necessary Permits” shall have the meaning set forth in Section 4.8.
1.22. “Net Income Tax Liability ” shall mean the difference between Kern River ’s immediate recognition of federal and state tax liability, as the result of Connecting Party ’s reimbursement to Kern River of the Actual Costs for the Interconnect Facilities, and the present value of Kern River ’s future tax benefits resulting from tax de preciation on the Interconnect Facilities, as set forth in Exhibit C. The Net Income Tax Liability is subject to True-Up from time to time during construction of the Interconnect Facilities and, at a minimum, at the end of construction of the Interconnect Facilities.
1.23. “Notice of Termination” shall mean a written notice of termination of this Agreement in accordance with Article VI.
1.24. “OBA” shall mean the OPERATIONAL BALANCING AGREEMENT as referenced in Section
7.3 of this Agreement.
1.25. “Prudent Industry Practice” shall mean, as of the relevant time, those methods and acts generally engaged in or applied by the gas pipeline industry in the United States that, in the exercise of reasonable judgment in light of the circumstances known at the t ime of performance, would have been expected to accomplish the desired result at a reasonable cost consistent with functionality, reliability, safety and expedition with due regard for health, safety, security and environmental considerations. Prudent Industry Practice is not intended to be limited to the optimum practices, methods or acts to the exclusion of others, but rather is intended to include reasonably acceptable practices, met hods and acts generally engaged in or applied by the pipeline industries in the United States.
1.26. “Reservation Charge Credit Costs ” shall mean costs incurred and paid by Kern River to provide its affected shippers with monetary credits under the provision of its Tariff in the event construction and installation of the Interconnect Facilities require s Kern River to temporarily alter its operations during such installation such that Ken River is unable to meet all of its firm service obligations to its shippers.
1.27. “Tariff” shall mean Kern River’s FERC GAS TARIFF, as revised from time to time.
1.28. “Termination Costs ” shall mean all Actual Costs incurred or to be incurred by Kern River, and associated reasonable carrying charges and winding up expenses for the Interconnect Facilities in the event this Agreement is terminated in accordance with the provisions of Article VI.
1.29. “True-Up” shall mean a written adjustment to the Interconnect Facilities Cost Estimate to reflect the Actual C ost. A True-Up may be made at any time during construction of the Interconnect Facilities or upon completion of the Interconnect Facilities. Each True -Up shall be delivered by Kern River to Connecting Party as soon as reasonably practicable upon Kern River’s assessment that a True-Up is reasonably necessary. True-Ups may affect the Net Income Tax Liability.
1.30. “TSA” shall mean, to the extent applicable to the delivery of gas to the Connecting Party, a firm TRANSPORTATION SERVICE AGREEMENT entered into between Connecting Party and Kern River.
ARTICLE II
INTERCONNECT FACILITIES
2.1. FACILITIES TO BE CONSTRUCTED BY KERN RIVER. The Interconnect Facilities shall consist of those facilities required or necessary to effectuate the delivery of the Design Flow in accordance with this Agreement, Kern River ’s specifications, the Tariff, Prudent Industry Practice, and in compliance with any and all applicable laws, rules, regulations
and orders of any duly constituted governmental authority having jurisdiction over Kern River or the Interconnect Facilities. Kern River shall design, procure, construct, install, test, and commission, at the Location, and at the sole cost and expense of Connecting Party, the Interconnect Facilities. Kern River reserves the right to modify the design of the Interconnect Facilities as necessary in accordance with Prudent Industry Practice to minimize the cost and/or optimize the efficiency of the Interconnect Facilities .
Notwithstanding the previous sentence, Kern River shall promptly consult with Connecting Party regarding any change in the location of the Custody Transfer Point agreed to by t he Parties and will use commercially reasonable effort to avoid the need for any such changes.
2.2. NECESSARY APPROVALS. Kern River agrees to promptly make the necessary applications and filings to obtain all the Necessary Approvals. Such Necessary Approvals s hall be obtained by and in the name of Kern River. Kern River shall be under no obligation to commence construction of the Interconnect Facilities until such time as all Necessary Approvals have been obtained. Kern River shall not be liable to Connecting Party under this Agreement for failure to obtain, or for delays in obta ining, the Necessary Approvals provided Kern River uses commercially reasonable efforts to obtain the Necessary Approvals.
2.3. INTERCONNECT FACILITIES COST ESTIMATE. The estimated cost of the Interconnect Facilities, determined in accordance with Prudent Industry Practice, includes but is not limited to the sum of: (i) planning, design, environmental, permitting, land acquisition, materials, labor, contract and engineering costs; (ii) o verheads; (iii) Net Income Tax Liability (consistent with U.S. Internal Revenue Service guidelines for “contributions in aid of construction”); (iv) allowance for funds used during construction, when applicable; (v) operating and maintenance costs and ad v alorem taxes, if applicable; (v i) Reservation Charge Credit Costs; and (v ii) Gas Loss Cost (collectively, “ Estimated Cost ”). The Estimated Cost for the Interconnect Facilities in this Agreement is projected to be $1,112,171, inclusive of tax gross up (as set forth in Exhibit C).
2.4. FACILITIES TO BE CONSTRUCTED BY CONNECTING PARTY. Connecting Party shall design, procure, construct and install, at Connecting Party ’s sole cost and expense, any facilities and/or equipment necessary to connect Connecting Party’s natural gas facilities to the Interconnect Facilities and shall obtain all necessary federal, state, and local governmental approvals as may be necessary to construct, own, and operate such facilities and equipment . The Connectin g Party ’s Facilities will accommodate pressures up to Kern River’s mainline pressure in the location of the Interconnect Facilities, which has a design MAOP of 1,200 psig. Connecting Party has the responsibility to adhere to 49 C.F.R. §192.195 and any other applicable federal and state requirements. Connecting Party expressly agrees that Kern River is not responsible for the pressure regulation, over- pressure protection or odorization of the Connecting Party’s Facilities, and that Connecting Party is solely liable for any and all damages due to inadequate over -pressure protection on the Connecting Party’s Facilities. Connecting Party shall design, procure, construct and install, at Connecting Party’s sole cost and expense, the following equipment:
2.4.1. associated tie -in piping with cathodic protection equipment connecting the Connecting Party’s facilities to the Interconnect Facilities;
2.4.2. other equipment that may be deemed necessary such as overpressure protection, regulation, odorization, etc.;
2.4.3. equipment required for data sharing, if access is requested in accordance with this Agreement;
2.4.4. such other equipment as is necessary to ensure the facilities described in this Section satisfy the requirements of this Agreement.
2.5. FACILITIES DESIGN AND CONSTRUCTION. Each Party represents and warrants that its facilities shall be designed, procured, constructed, and installed in accordance with Prudent Industry Practice and all valid and applicable laws, regulations, codes, rules, ordinances, and directives of all applicable federal, state, local and tribal authorities, if any, having jurisdiction over such facilities including, without limitation, the pr ovisions of 49 C.F.R. Part 192.
2.6. FACILITY ACCESS. As currently configured, Kern River has access to an all-weather access road for Kern River to enter the interconnect site and access the Interconnect Facilities.
Kern River’s obligation to maintain the Interconnect Facilities is subject to Kern River’s ability to enter the interconnect site and access the Interconnect Facilities. Prior to taking any action that would result in Kern River shutting -in the Interconnect Facilities in accordance with Section 4.11, Kern River shall provide reasonable advance written notice to Connecting Party, and allow Connecting Party a reasonable opportunity to address and remedy any issues impacting Kern River’s ability to enter the interconnect site and access the Interconnect Facilities.
2.7. CONSTRUCTION NEAR KERN RIVER’S FACILITIES. Connecting Party shall not use Kern River ’s easements or right -of-way without Kern River ’s prior written consent.
Kern River shall have the right to have its representatives present, at Connecting Party’s sole cost and expense, during any work performed by Connecting Party within Kern River’s easements or right-of-way. Kern River shall perform the activities necessary to connect the Connecting Party Facilities to the Interconnect Facilit ies including the installation of any cathodic protection isolation kit(s ). Connecting Party may have personnel present when Kern River connects Connecting Party Facilities to the Interconnect Facilities, provided Connecting Party’s personnel follow all Kern River safety and security policies and protocols.
2.8. DAMAGE NOTIFICATION. If any damage occurs to the Interconnect Facilities, or if situations arise creating a reasonable likelihood that damage will occur to the Interconnect Facilities, the Party causing the damage or identifying the potentially damaging situation shall immediately inform the other Party and, if Kern River determines it necessary, all activities contributing to the damage or the potential damage shall cease until the damage is repaired and/or the situation is remedied. The Party responsible for causing the damage shall be responsible for remedying the damage and/or the cause of the potential damage.
2.9. COMMENCEMENT OF CONSTRUCTION, COMMISSIONING, AND START-UP. Upon (i) Kern River’s receipt of Connecting Party’s Prepayment, as required by Section 3.1, (ii)
Kern River’s obtainment of all necessary contractor agreements and required materials, (iii) Kern River’s obtainment of land rights and construction access, and (iv) Kern River’s receipt of all Necessary Approvals (unless otherwise waived in writing by Kern River) , Kern River will commence installation of the Interconnect Facilities. Kern River and Connecting Party shall coordinate all activities associated with commissioning the Interconnect Facilities including, but not limited to, purging and activating the Interconnect Facilities. Connecting Party is responsible for the cost of all gas required to purge the facilities constructed pursuant to this Agreement. No gas shall be delivered through the Interconnect Facilities until all Necessary Approvals have been received and accepted (or otherwise waived in writing by Kern River ); the Interconnect Facilities have been constructed, tested, and approved by Kern River; and the Parties are in compliance with the terms and conditions of this Agreement.
ARTICLE III
FACILITIES REIMBURSEMENT
3.1. PREPAYMENT. Upon execution of this Agreement, Connecting Party shall prepay Kern River for the Estimated Cost as set forth in Exhibit F, by check or wire transfer per invoice provided by Kern River for the project described herein. If Connecting Party fails to make prepayment in accordance with the invoice, Kern River shall have no obligation to continue work and shall incur no liability for discontinuing work. Furthermore, Connecting Party expressly acknowledges that the installation of the Interconnect Facilities on Kern River’s system may require Kern River to temporarily alter its operations before, during, and/or after such installation such that Kern River may be unable to meet all of their firm service obligations to their customers. In such event, and if Kern R iver is therefore required to provide its affected customers with monetary credits under the provisions of its Tariff (“ Reservation Charge Credits ”), Connecting Party expressly acknowledges that such direct costs to Kern River are attributable to the installation of the Interconnect Facilities, and Connecting Party shall reimburse Kern River for any Reservation Charge Credits that are incurred by Kern River in connection with the installation of the Interconnect Facilities. Connecting Party shall also reimburse Kern River for Gas Loss Cost.
3.2. REVISED ESTIMATED COST. In addition to prepayment of the Estimated Cost as required in Section 3 .1 above, Kern River may re -evaluate the Estimated Cost. If any Revised Estimated Cost exceeds the original Estimated Cost, Kern River will promptly notify Connecting Party and may require Connecting Party to remit to Kern River within ten (10) business days such additional costs prior to Kern River, (a) continuing work on the design, construction, and installation of the Interconnect Facilities, and/or (b) incurring additional costs in connection with the design, construction, and installation of the Interc onnect Facilities.
3.3. STATUS REPORT. Kern River and Connecting Party shall meet on a monthly basis to discuss progress toward completion of the Interconnect Facilities, which shall include both an estimated project completion date and a comparison of the Est imated Cost and Actual Cost. If at any point the Revised Estimated Cost is projected by Kern River to exceed one hundred ten (110) percent of the Estimated Cost, Kern River shall provide notice to
Connecting Party as soon as practicable and shall provide d ocumentation to Connecting Party reasonably evidencing the need for the additional costs. Kern River agrees to cooperate with Connecting Party to implement reasonable recommendations of Connecting Party to minimize any increase in the costs.
3.4. TRUE-UP AND FINAL INVOICE. When the Interconnect Facilities are ready for service (i.e., when the Interconnect Facilities are ready to deliver gas) , the Parties shall True -up the Interconnect Facilities Cost Estimate as compared to the Actual Costs such that Connecting Party ultimately pays the Actual Cost. To the extent in excess of any prior payments made by Connecting Party, Connecting Party shall pay Kern River for all Actual Costs incurred by Kern River for the construction and installation of the Inte rconnect Facilities . In addition, when the Interconnect Facilities are ready for service and the Actual Cost has been determined, Kern River shall tender to Connecting Party an invoice for the Actual Cost, net of any amounts previously paid by Connecting Party pursuant to this Agreement and indicating the underpayment or overpayment by Connecting Party.
3.4.1. In the event of underpayment, Connecting Party shall pay Kern River the invoiced amount within thirty (30) days of the date of the invoice. Should Connecting Party fail to make payment of such invoice within thirty (30) days of the date of the invoice, Kern River shall be entitled t o collect from Connecting Party the amount of said invoice together with interest at a rate equal to the then -applicable FERC Interest Rate. Such interest shall accrue on unpaid amounts, including on unpaid interest, compounded monthly, beginning on the payment due date of Kern River’s invoice to Connecting Party and terminating when such invoice is paid. Kern River reserves the right not to flow gas through the Interconnect Facilities if Connecting Party fails to timely pay Kern River the invoiced amount.
3.4.2. In the event of overpayment, Kern River shall refund , to Connecting Party , the difference between any amounts previously paid by Connecting Party pursuant to this Agreement and the Actual Cost within thirty (30) days of the date on the invoice. If Kern River fails to make payment of such refund within thirty (30) days of the date of the invoice, interest shall accrue on the overpaid portion of the invoice due under this agreement at the FERC Interest Rate. Such interest shall accrue on unpaid amounts, including on unpaid interest, compounded monthly, beginning on the payment due date of Kern River’s invoice to Connecting Party and terminating when such invoice is paid. In no instance shall Kern River’s failure to make payment extend beyond ninety (90) days of the date of the invoice for any invoice not disputed in good faith.
3.4.3. Upon completion and placement of the Interconnect Facilities in service, Kern River shall tender to Connecting Party a detailed accounting of the Actual Costs .
Kern River's Actual Costs will be recorded in accordance with the requirements of the uniform system of accounts found in 18 C.F.R. Part 201. Kern River agrees to provide Connecting Party, or its auditors, access to Kern River's accounting records reasonably applicable to Connecting Party’s Actual Costs during normal business hours to verify the accura cy of the Actual Costs for a period of six (6) months (“Audit Period”) following the date that Kern River renders the detailed listing of
the Actual Costs and final invoice to Connecting Party. The Parties shall mutually agree as to the date and time of an y such audit. Connecting Party and its auditors must strictly adhere to Kern River’s safety and security protocols while on Kern River premises. Due to the possible disruption to Kern River’s business, the Parties agree that any audit conducted pursuant to this sub-section 3.4.3 may take place only one (1) time during the Audit Period.
3.5. INVOICE DISPUTE. If the Connecting Party disputes one or more items in the invoice referenced in Section 3.4.1 or Section 3.4.2, Connecting Party shall pay the invoice in full pursuant to Section 3.4.1 or Section 3. 4.2, as applicable , and shall notify Kern River in writing within thirty (30) calendar days of receipt of the invoice, and such notice shall contain a detailed description of the item(s) being disputed and the basis thereof.
Kern River shall respond to Connecting Party within fifteen (15) calendar days of recei pt of the notification. Kern River and Connecting Party shall work in good faith to resolve all disputes. Promptly after resolution of any dispute, the amount of any identified overpayment shall be refunded to Connecting Party.
ARTICLE IV
INTERCONNECT OWNERSHIP, OPERATION AND MAINTENANCE
4.1. OWNERSHIP AND OPERATION OF FACILITIES. Kern River shall have title to and ownership of the Interconnect Facilities; Connecting Party shall have title to and ownership of the Connecting Party Facilities. It is understood and agreed that subsequent to the installation of the Interconnect Facilities and Connecting Party Facilities, Kern River shall operate and maintain the Interconnect Facilities at the sole cost and expense of Kern River, while Connecting Party shall operate and maintain the Connecting Party Facilities at the sole cost and expense of Connecting Party.
4.2. OPERATION OF THE INTERCONNECT. Connecting Party shall be the operator of the Connecting Party Facilities and Kern River shall be the operator of the Interconnect Facilities for all purposes including compliance with all applicable pipeline safety regulations and Prudent Industry Practice. Kern River shall perform Measurement Services at the Interconnect Facilities as specifically provided for in Article V below. As operator, each Party shall procure and furnish all materials, equipment, services, supplies, tools, and labor necessary for the operation and maintenance of the applicable facilities including, without limitation, cleaning, coating/painting, over hauling, maintaining, repairing, modifying, testing and replacing the facilities in accordance with sound and Prudent Industry Practice.
4.3. OVER PRESSURE PROTECTION. The Interconnect Facilities and Connecting Party Facilities shall be designed to an MAOP of 1,200 psig, regardless of the actual operating pressures maintained by the Parties in their respective facilities. Connecting Party shall construct and own, operate and maintain, at the sole risk, cost, and expense of Connecting Party, overpressure protect ion equipment and any other pressure control regulation equipment required by Connecting Party to receive the gas into its facilities. Connecting Party has the responsibility to adhere to 49 C.F.R §192.195 and any other applicable federal and state requirements. Connecting Party shall notify Kern River, in writing, within thirty
(30) days following the execution of this Agreement, the planned Connecting Party Facilities’ MAOP. Once communicated to Kern River, any future increases to Connecting Party Facilities’ MAOP shall be approved by Kern River in writing.
4.4. CATHODIC PROTECTION AND ODORIZATION. Each Party shall be fully responsible for the operation and maintenance of cathodic protection devices on their respective facilities. The Parties shall cooperate to resolve any issues relating to cathodic protection. Connecting Party, at its sole cost, risk, and liability may odorize the Delivery Gas at Connecting Party Facilities if required by any local, state, federal, or other governmental auth ority having such jurisdiction. If Connecting Party elects to odorize the Delivery Gas, then Connecting Party shall be responsible for the installation, operation and maintenance of any necessary odorant equipment, supplying odorant chemicals, and for the injection of odorant at levels required by applicable regulatory authorities. Connecting Party shall indemnify Kern River for all Claims brought against Kern River arising from Connecting Party’s odorization of the Delivery Gas.
4.5. CONTROL AND POSSESSION. Custody of the gas shall pass between the Parties when it passes through the Custody Transfer Point. Subject to the terms of the Tariff, as between Kern River and Connecting Party: (i) Connecting Party shall be in control and possession of the gas and shall indemnify, defend, and hold Kern River harmless, against any losses including, but not limited to, loss of gas, Claims, liens, demands, and causes of action related to Connecting Party’s possession of the gas, when such gas is in any of Connecting Party’s facilities downstream of the Custody Transfer Point; and (ii) Kern River shall be in control and possession of the gas and shall indemnify, defend, and hold Connecting Party harmless, against any losses including, bu t not limited to, loss of gas, C laims, liens, demands, and causes of action related to Kern River’s possession of the gas, when such gas is in any of Kern River’s facilities upstream of the Custody Transfer Point.
4.6. INTERCONNECT FACILITIES ACCURACY. The Interconnect Facilities shall measure Connecting Party’s requested Design Flow. The terms of this Agreement shall in no way obligate Kern River to operate its pipeline facilities at a certain pressure. If Kern River determines that the Interconnect Facilities are registering inaccurately due to factors created by the Connecting Party’s facilities or its operations (including, but not limited to, Connecting Party operating outside the design range of the Interconnect Facilities and/or compressor pulsation), Connecting Party shall, at its sole cost and expense, perform the actions requir ed, in Kern River’s reasonable discretion, to restore the accuracy of the Interconnect Facilities including, but not limited to, designing, constructing, and installing any necessary modifications or improvements to Connecting Party ’s facilities (“Corrective Action (s)”). If restoration of the Interconnect Facilities ’ accuracy entails designing, constructing, and installing modifications or improvements to the Interconnect Facilities, Kern River shall perform such modifications or improvements in accordance with Prudent Industry Practice and at Connecting Party ’s sole cost and expense. If such Corrective Action (s) fail to restore measurement accuracy, Kern River shall provide Connecting Party written notice of the failure to correct the problem and provide Connecting Party additional opportunities to restore measurement accurac y; provided, however, that if (i) Connecting Party is not proceeding in good faith to restore the accuracy of the Interconnect Facilities, or (ii ) Kern River has repeatedly shut -in the Interconnect
Facilities due to measurement inaccuracies, then Kern River may shut -in the Interconnect Facilities in accordance with Section 4.11, without further obligation to the Connecting Party.
4.7. FLOW OBLIGATIONS. In the event that the amount of gas flowing through the Interconnect Facilities is less than, or more than, the Design Flow for accurate measurement (per Section
1.8 and Section 4.6), Kern River may shut-in the Interconnect Facilities in accordance with Section 4.11 until (i ) Connecting Party has increased or decreased flow through the Interconnect Facilities, (ii ) Connecting Party, at its sole expense, has taken Corrective Action(s) that restore measurement accuracy to the extent reas onably required by Kern River and/or (ii) modifications or improvements to the Interconnect Facilities, at the sole cost and expense to Connecting Party, have been completed.
4.8. PERMITS. Each Party, at Connecting Party’s sole cost and expense, shall be responsible for obtaining any and all permits, licenses, necessary approvals and governmental authorizations necessary to construct, install, operate, and maintain such Party’s facilities.
Each Party (the “Indemnifying Party”) shall indemnify and hold harmless the other Party (the “Indemnified Party”) for any penalties, fines, expenses, costs, or liabilities incurred by the Indemnified Party as the result of the Indemnifying Party ’s failure to secure the permits, licenses, and necessary approvals and governmental authorizations necessary for the Indemnifying Party to construct, install, operate, and maintain its facilities.
4.9. MODIFICATIONS, REPAIRS AND SERVICE OUTAGES. Each Party shall advise the other Party, as soon as reaso nably practical, and in a manner consistent with custom in the industry, before taking the Interconnect Facilities or the Connecting Party’s Facilities out of service for modifications or repairs, provided that in the event of an emergency situation either Party may immediately commence repairs to its facilities and provide notice to the other Party as soon as reasonably practicable. Kern River retains t he unilateral right to change the operations of its facilities and/or upgrade its system. Such operational changes may require the adjustment and/or addition of equipment and facilities by Connecting Party in order to maintain flow of gas volumes. To the extent modifications, repairs or outages to the Interconnect Facilities are caused or required by Connecting Party, Connecting Party shall be responsible for all associated costs.
4.10. SAFETY AND HEALTH. Each Party shall ensure that any time its employees, age nts, contractors or subcontractors are accessing the other Party ’s facilities, such employees, agents, contractors or subcontractors are abiding by reasonable safety, operational and drug policies, practices and procedures, consistent with Prudent Industry Practice.
4.11. FAILURE TO PERFORM. If Connecting Party fails to comply with any of its obligations under this Agreement, and such failure affects Kern River ’s operation of the Interconnect Facilities, Kern River will notify Connecting Party of such failure, and if Connecting Party does not remedy such failure within the timeframe indicated in the notice from Kern River, Kern River may immediately shut -in, or cause Connecting Party to shut -in, the Interconnect Facilities until, in Kern River’s sole judgment and on a non -discriminatory basis, Connecting Party is fully complying with all of the terms and conditions of this Agreement. Kern River, in its sole judgment, shall have the right to perform whatever
actions are necessary to cease gas flow through the I nterconnect Facilities without first providing Connecting Party notice if (i ) equipme nt is not operating properly, (ii ) an overpressure condition exists, (iii ) des ign limitations are exceeded, (iv ) safe operatin g conditions are compromised, (v ) public heal th and safety could be compromised , or (vi ) failure to conform with gas quality requirements. Connecting Party further acknowledges that the Interconnect Facilities may require manual intervention before gas flow resumes.
Furthermore, Kern River has the ri ght to keep the Interconnect Facilities shut-in until Connecting Party rectif ies the situation. If abnormal conditions repeatedly arise, Kern River has the right to shut-in the Interconnect Facilities temporarily and require a meeting with Connecting Party to have Connecting Party either (a) reasonably demonstrate that its operations are consistent with Prudent Industry Practice, or (b ) implement recommendations of Kern River to make operations consistent with Prudent Industry Practice.
4.12. ACTIONS OF THE PARTIES. Each Party covenants that its operations pursuant to this Agreement shall be in compliance and in accordance with all necessary approvals and Prudent Industry Practice.
ARTICLE V
MEASUREMENT
5.1. MEASUREMENT SERVICES. The measurement services (“Measurement Services”) to be performed by Kern River hereunder at the Interconnect Facilities shall consist of volume and energy calculations, calibration of secondary measurement devices, and measurement recording instrumentation consistent with the terms of the Tariff.
5.2. WITNESSING OF MAINTENANCE AND CALIBRATION ACTIVITIES. Except in the case of emergencies, both Parties shall have the right to be present during the installation, cleaning, changing, repairing, inspecting, testin g, calibrating and/or adjusting of the gas measurement equipment. Connecting Party, in the presence of Kern River shall have access to the gas measurement equipment; however, reading, calibrating and/or adjusting such facilities shall be performed by Kern River.
5.3. MEASUREMENT AND RECORDS. Kern River shall operate and maintain the meters, electronic gas measurement equipment, and all related appurtenances and communications equipment installed and associated with the Interconnect Facilities. The information generated by Kern River’s measurement facilities shall constitute the official measurement data for gas quantities delivered through the Interconnect Facilities. Kern River shall preserve all records relating to the measurement data for gas qua ntities delivered through the Interconnect Facilities for a period of at least one (1) year , or such longer periods as shall be required by law, regulation, rule, or order. During such period, Connecting Party, or its designated representative, shall have access to such records during regular business hours upon reasonable written notice.
5.4. DATA SHARING. As a courtesy and as requested by Connecting Party, Kern River will provide Connecting Party with the operations information identified on Exhibit D for the purpose of acquiring signals and data necessary to view and monitor gas flow data,
including a corrected gas flow rate representing the volumes being received from Connecting Party, or delivered to Connecting Party. Kern River provides this informatio n to Connecting Party without receipt of consideration from Connecting Party, and Connecting Party acknowledges that such information may be discontinued, altered or limited by Kern River at any time without notice. Kern River shall provide Connecting Party access to certain measurement data for the Interconnect Facilities described herein, subject to the following terms and conditions, which shall be applicable only to this Section:
5.4.1. INSTALLATION OF EQUIPMENT. Connecting Party, at its sole risk, cost, and expense, may install or cause to be installed Connecting Party ’s Data Sharing Equipment to obtain access to Kern River ’s electronic measurement data.
Connecting Party ’s Data Sharing Equipment shall be installed only at locations mutually agreed upon by Kern River and Connecting Party. Kern River will terminate all cabling in Kern River -owned equipment as necessary. Connecting Party’s Data Sharing Equipment shall include supply isolation devices acceptable to Kern River which provide surge protection betw een Kern River ’s and Connecting Party’s facilities.
5.4.2. DATA ACCESS. Connecting Party shall have access to such electronic measurement data only in a format established by Kern River that will not interfere with the operation of the Interconnect Facilities, as set forth in Exhibit D. Connecting Party shall (i) only poll registers or serial ports approved by Kern River (ii) have read- only access to the approved registers and/or serial ports, and ( iii) poll for data at a frequency as determined by Kern River. Kern River’s electronic measurement data is “raw” data without refinement or correction and may be subject to interruption due to maintenance, repair, or other activities by Kern River, or due to events of force majeure. The term “ force majeure ” as employed herein shall have the meaning set forth in the Tariff. Kern River shall use reasonable efforts to provide accurate and continuous information to Connecting Party; however, Kern River does not warrant the accuracy or availability of the data. Kern River shall have no obligation to advise Connecting Party of any potential interruptions that may prevent Connecting Party from monitoring data at the Interconnect Facilities, whether or not resulting from activities performed by Kern River. Connecting Party shall utilize this data solely for information purposes. The data furnished to Connecting Party shall not be used for the measurement of gas for any gas transportation contracts. Kern River shall maintain responsibility for the official measurement data for gas quantities delivered through the Interconnect Facilities.
5.4.3. OWNERSHIP & OPERATION. Connecting Party shall retain title to own, operate, and maintain Connecting Party’s Data Sharing Equipment and appurtenant connection facilities installed by Connecting Party. Title to the facilities installed by Kern River shall remain in Kern River’s name and said facilities shall be owned, operated and maintained by Kern River.
5.4.4. KERN RIVER’S RIGHT TO DISCONNECT EQUIPMENT. Kern River reserves the right to disconnect Connecting Party’s Data Sharing Equipment from the Interconnect Facilities, without prior notice, if Connecting Party ’s Data Sharing Equipment in
any way interferes with or adversely affects Kern River’s operations, including but not limited to, Kern River’s ability to perform effective measurement. If it becomes necessary for Kern River to disconnect Connecting Party ’s Data Sharing Equipment from the Interconnect Facilities, Kern River shall (i) notify Connecting Party of said disconnection prior to or as soon as possible thereafter, and (ii) coordinate with Connecting Party the reconnection of Connecting Party ’s Data Sharing Equipment following correction of the problem by Connecting Party to Kern River’s satisfaction.
5.4.5. MODIFICATION AND/OR REMOVAL OF FACILITIES. Connecting Party may modify and/or remove Connecting Party ’s Data Sharing Equipment at any time, at Connecting Party’s sole risk, cost and expense, after giving reasonable prior written notice to Kern River, so long as such removal does not interfere with Kern River’s facilities and/or Kern River ’s operations. Notwithstanding any provision in this Agreement to the contrary, if for any reason Kern River constructs new facilities or moves, modifies, removes, sells, assigns, abandons or otherwise dis poses of its facilities covered under this Agreement, then Connecting Party shall promptly move, remove or change the installation, operation or maintenance of Connecting Party’s Data Sharing Equipment at Connecting Party’s sole risk, cost and expense in a manner acceptable to Kern River.
5.4.6. “AS BUILT” DRAWINGS. Within ninety (90) days following completion of installation of Connecting Party’s Data Sharing Equipment, Connecting Party shall furnish Kern River with an “as installed” set of drawings for Kern River’s files.
5.4.7. FAILURE TO COMPLY. If Kern River determines that Connecting Party has failed to comply with any of the terms of this Section 5.4, Kern River will provide Connecting Party with reasonable notice to correct such failure. Absent Connecting Party’s expeditious correction of such failure, Kern River will have the right to (i) immediately terminate Connecting Party ’s rights to connect to Kern River ’s equipment or to access data as provided hereunder, and (ii) upon not less than twenty-four (24) hours ’ notice, remove Connecting Party ’s Data Sharing Equipment at Connecting Party ’s sole risk, cost, and expense and without any liability to Kern River; provided, however, nothing herein shall restrict Kern River’s rights to take immediate action, as Kern River deems necessary, to protect its personnel, its equipment, the public and/or the integrity of its data, which action may include but shall not be limited to shut-down, disconnection, or removal of any of Connecting Party’s Data Sharing Equipment.
5.4.8. DATA PROVIDED “AS-IS”. Connecting Party understands and agrees that Kern River is providing operational information with absolutely no warranties or representations as to the accuracy, consistency, availability, or continued accessibility of such information, and any and all warranties, whether express or implied, are hereby expressly disclaimed. Connecting Party further agrees that such operational information will not be used or relied upon in any billing, volume nomination or other dispute of any kind which may arise between Connecting Party and Kern River. Connecting Party hereby releases Kern River from any and all
liability of any nature whatsoever which may arise in connection with Connecting Party’s use of such information and Connecting Party shall defend and indemnify Kern River against any and all liabilities to third parties which may arise in connection with Connecting Party’s use of such information.
5.4.9. SIGNALING NOTICES. Notwithstanding Section 7.5 governing general notices below, communications specifically relating to signaling under this Section 5.4 shall been deemed duly given if provided in writing, sen t U.S. Mail, nationally recognized express courier service, or other mutually acceptable means and addressed to the respective Party at the address stated below or such other address as either Party shall respectively hereinafter designate in writing from time to time:
KERN RIVER GAS TRANSMISSION COMPANY City of Victorville Attn: VMUS Gas Operations
Superintendent
2755 E. Cottonwood Parkway, Suite 300 14343 Civic Dr.
Salt Lake City, UT 84121 Victorville, CA 92392
Technical Contact: Lucas Sosa Technical Contact: Rob Denny Phone: (801) 937-6358 Phone: 760-243-6348
Cell: (801) 673-4923 Cell: 760-578-5598 (24-hour standby line)
Email: [email protected] Email: [email protected]
ARTICLE VI
TERM AND TERMINATION
6.1. TERM. Subject to the provisions hereof, this Agreement shall become effective on the Effective Date and, unless terminated earlier as provided in this Agreement, shall continue and remain in full force and effect until the Interconnect Facilities are disconnecte d, removed, or abandoned in accordance with Section 7.1 of this Agreement.
6.2. TERMINATION. At any time prior to the Interconnect Facilities being placed into service, either Party may terminate this Agreement by providing the other at least thirty (30) days’ Notice of Termination . Kern River may terminate this Agreement immediately if Connecting Party fails to make the prepayment in accordance with Section 3.1. The provisions of Sections 3.4, 3.5, 6.2, 6.3, 7.5, 7.6 and 7.7 shall survive the termination of this Agreement. Connecting Party will remain responsible for all Termination Costs.
6.3. TERMINATION COSTS INVOICE. In the event Kern River or Connecting Party terminates this Agreement, Kern River shall provide an invoice detailing the Termination Costs and any applicable damages pursuant to Section 7.8.
6.3.1. In the event Connecting Party’s prepayment(s) exceeds the Termination Costs plus any applicable damages pursuant to Section 7.8, Kern River shall refund the full amount of such overpayment within thirty (30) calendar days of the date of the
invoice. If Kern River fails to make payment of such refund within said thirty (30) calendar days, interest shall accrue on the overpaid portion of the invoice due under this Agreement at the FERC Interest Rate. Such interest shall accrue on unpaid amounts, including on unpaid interest, compounded monthly, beginning on the payment d ue date of Kern River ’s invoice to Connecting Party and terminating when such invoice is paid.
6.3.2. In the event the Termination Costs plus any applicable damages pursuant to Section 7.8 exceed Connecting Party’s prepayments, Connecting Party shall pay Kern River, as applicable, for all outstanding Termination Costs. If Connecting Party fails to make payment of such Termination Costs invoice within said thirty (30) calendar days, interest shall accrue on the unpaid portion of the Termination Costs due un der this Agreement at the FERC Interest Rate. Further, Connecting Party agrees to reimburse Kern River for any reasonable attorney ’s fees and costs that may be incurred in collection or enforcement of any such payments due. Such interest shall accrue on unpaid amounts, including on unpaid interest, compounded monthly, beginning on the payment due date of Kern River’s invoice to Connecting Party and terminating when such invoice is paid.
ARTICLE VII
MISCELLANEOUS
7.1. DISCONNECTION, REMOVAL & ABANDONMENT. Other than to perform maintenance and/or replacement, neither Party shall permanently remove any facilities or equipment constructed pursuant to this Agreement until all transportation services through the facilities have ceased for twelve (12) consecutive months, unless (i) all shippers who have received transportation service through the facilities in the previous twelve (12) consecutive months p rovide their written consent; (ii ) the Interconnect Facilities are not listed as a primary receipt or delivery point under any firm transpor tation service agreement; and (iii) the Party desiring to remove its facilities provides the other Party not less than thirty (30) days ’ prior written notice of its intent to remove facilities. Upon termination of this Agreement, Connecting Party, at its sole cost, risk, and expense, shall be responsible for the proper disconnection, removal, and abandonment of the Connecting Party Facilities and Connecting Party’s Data Sharing in accordance with all governmental authorizations. Kern River shall have the right to disconnect and remove its Interconnect Facilities and any other equipment owned by Kern River from the Connecting Party Facilities, at its sole cost, upon termination of this Agreement.
7.2. TRANSPORTATION SERVICES. Connecting Party and Kern River acknowledge that nothing contained in this Agreement shall be construed to obligate Kern River to provide transportation services to Connecting Party, at any time. The Parties acknowledge that all deliveries of gas at the Interconnect Facilities shall be governed by the terms and conditions of the Tariff and its operational procedures thereto, includin g those nominations and scheduling standards established by the North American Energy Standards Board (NAESB) or such successor entity as such standards are set forth or incorporated by reference in the Tariff.
7.3. OPERATIONAL BALANCING AGREEMENT. Connecting Party and Kern River shall enter into an OPERATIONAL BALANCING AGREEMENT, the form of which is included herein as Exhibit E, prior to the In -Service Date in order to facilitate more efficient operation of such Interconnect Facilities.
7.4. FORCE MAJEURE. If either Party is rendered unable, in whole or in part, by force majeure to carry out its obligations under this Agreement, then such Party shall give notice to the other Party, in accordance with this Agreement, including reasonably full particulars of such force majeure event within a reasonable time after it becomes aware of the occurrence of the force majeure, and the obligations of such Party, insofar as they are affected by such force majeure, shall be suspended from the commencement of such force majeure through the continuance of any inability so caused, but for no longer period, and such force majeure shall so far as possible be remedied with all reasonable dispatch. Kern River’s notice shall be provided through its electronic bulletin board and deemed duly given if Kern River posts such notice on its electronic bulletin board. Any suspension of obligation for reasons of force majeure shall be proportional to the effect of such force majeure on the particular obligation from which relief is sought, and shall not relieve any Party from its obligation to make payments hereunder which were due prior to such force majeure. The term “force majeure” as employed herein shall have the meaning set forth in the Tariff.
7.5. NOTICES. Any notice, request, statement , invoice, payment or other communication provided for in this Agreement shall be deemed duly given if provided in writing, sent by U.S. Mail, nationally recognized express courier service, or some other mutually acceptable means and addressed to the respective Party at the address stated below or such other address as either Party shall respectively hereinafter designate in writing from time to time:
KERN RIVER GAS TRANSMISSION CITY OF VICTORVILLE
2755 E. Cottonwood Pkwy, STE 300 14343 Civic Dr.
Salt Lake City, Utah 84121 Victorville, CA 92392
Attention: Business Development Attention: VMUS Director of Electric Utility Services
Telephone: (801) 937-6210 Telephone: 760-243-6341
Fax: (801)937-6054 Fax: N/A
Email: [email protected] Email: [email protected]
7.6. INDEMNIFICATION. Subject to the limitations set forth in Section 7.8 below, to the fullest extent permitted by law, each Party agrees to protect, defend, indemnify and hold the other Party, its directors, officers, employees, attorneys-in-fact, agents and affiliated companies (collectively, the “Indemnitees”), free and harmless from and against any and all losses, claims, liens, demands, and causes of action of every kind and character, arising out of, in connection with, or incident to this Agreement, including, but not limited to, the amounts of judgments, p enalties, interest, court costs, investigation expenses and costs and legal fees incurred by Indemnitees, in defense of same arising in favor of any governmental agencies, third persons, contractors or subcontractors, on account of taxes, claims, liens, debts, personal injuries, death or damages to property, and all other claims or demands of every character occurring or incident to, in connection with or arising out of the
indemnifying party’s or its contractors’ or subcontractors’ negligence, willful misconduct, acts or omissions in the performance of indemnifying party ’s obligations under this Agreement (collectively, “Claims”).
7.7. REPRESENTATIONS AND WARRANTIES. Each Party represents and warrants that it has full and complete authority to enter into and pe rform this Agreement. Each person who executes this Agreement on behalf of either Party represents and warrants that it has full and complete authority to do so and that such Party will be bound thereby. As of the Effective Date, each Party represents and warrants to the other Party that:
7.7.1. Its operations pursuant to this Agreement shall be in compliance and in accordance with all governmental authorizations and environmental laws;
7.7.2. It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization/incorporation;
7.7.3. The execution, delivery and performance of this Agreement have been and remain duly authorized by all necessary corporate or organizational action and do not contravene any provision of law or Party’s constitutional documents or any contractual restriction binding on Party or its assets;
7.7.4. All consents, authorizations and approvals of, and registrations and declarations with, any governmental authority necessary for the due execution, delivery an d performance of this Agreement have been obtained and remain in full force and effect and all conditions thereof have been duly complied with, and no other action by and no notice to or filing with, any governmental authority is required in connection with Party’s execution, delivery or performance of this Agreement;
7.7.5. There are not pending or, to its knowledge, threated legal proceedings that could materially adversely affect its ability to perform its obligations under this Agreement;
7.7.6. It is acting for its own account, has made its own independent decision to enter into this Agreement and as to whether this Agreement is appropriate or proper for it based upon its own judgment, is not relying upon the advice or recommendations of the other Party in so doing , and is capable of assessing the merits of and understanding, and understands and accepts, the terms, conditions and risks of this Agreement; and
7.7.7. Its assets, at their respective fair value, exceed its liabilities and it has, or will have, sufficient cash and capital to pay its liabilities and obligations as they become due.
7.8. BREACH AND LIMITATION OF LIABILITY. Connecting Party’s failure to comply with the terms of this Agreement , the OBA (Exhibit E), Tariff or TSA (if applicable) is a breach and will , if unremedied by Connecting Party following reasonable written notice (as applicable), constitute a default under this Agreement. Upon Connecting Party ’s default, Connecting Party will be liable for any and all damages at law or in equity hereunder, as
accelerated to the date of such breach, including any such rights Kern River may exercise pursuant to the Tariff. Either Party may terminate this Agreement for breach or non - performance by the other Party i f such other Party fails to cure its breach or non - performance within thirty (30) calendar days after receipt of written notice hereunder; provided however, NEITHER PARTY , NOR ITS REPRESENTATIVE OFFICERS , DIRECTORS,
EMPLOYEES, REPRESENTATIVES, DESIGNEES, AFFILIATES, SUCCESSORS OR ASSIGNS WILL BE
LIABLE TO THE OTHER PARTY FOR ANY INDIRECT , CONSEQUENTIAL, SPECIAL, INCIDENTAL,
OR PUNITIVE DAMAGES HOWEVER CAUSED , WHETHER ARISING OUT OF CONTRACT , TORT,
STRICT LIABILITY , INDEMNITY, WARRANTY, PROFESSIONAL LIABILIT Y, CONTRIBUTION, OR OTHERWISE.
7.9. INSURANCE REQUIREMENTS. Kern River will require all of its contractors and subcontractors constructing the Interconnect Facilities to carry commercial general liability insurance with a limit of not less than $5,000,000 on a per location and/or per job basis .
Upon completion and placement of the Interconnect Facilities in service, Kern River may elect to be self-insured. Connecting Party shall procure, at its own expense, from reliable insurance companies having an A.M. Best rating of not less than A -/VII and carry for the entire duration of this Agreement, the following types of insurance, with terms and limits not less than shown for the respective items:
7.9.1. Worker’s compensation insurance as required by the laws of the state in which the operations under this Agreement are to be conducted;
7.9.2. Employer’s liability insurance with limits of not less than $1,000,000 each accident, $1,000,000 disease each employee, and $1,000,000 disease policy limit. If any operations contemplated under this Agreement take place on or adjacent to a navigable waterway, such policy shall include coverage as required under the U.S.
Longshoreman’s and Harborworker ’s Act and/or the Jones Act as may be applicable;
7.9.3. Commercial general liability insurance with a combined single limit of not less than $1,000,000 per occurrence/$2,000,000 general aggregate (on a per location and/or per job basis) and including coverage for bodily and personal injury, broad form property damage, pre mises liability, sudden and accidental pollution liability, completed operations and products liability. Any exclusion for “Explosion”, “Collapse”, and/or “Underground” (XCU) operations shall be removed from such coverage;
7.9.4. Automobile liability insurance, covering the operation of all owned, hired, rented, or non -owned licensed motor vehicles, with a combined single limit for each occurrence of not less than $1,000,000;
7.9.5. Excess/Umbrella liability coverage in excess of the limits and with terms at least as broad as the coverages outlined in (b) through (d) above, with a combined single limit for Bodily Injury and Property Damage of at least $10,000,000 for each occurrence;
7.9.6. If Connecting Party utilizes aircraft or unmanned aircraft systems (UAS), in the performance of this Agreement, operator shall maintain Aircraft/UAS liability insurance including owned, non-owned, chartered or hired aircraft with limits of at least $5,000,000 combined single limits for passenger and third-party bodily injury and property da mage during all phases of flight operations and insure the risks associated with the Agreement, including contractual and war liability coverage.
Connecting Party shall comply with all applicable federal, state and local laws, including Federal Aviation As sociation (FAA) laws and certifications for all aircraft/UAS operations;
7.9.7. If Connecting Party in any way collects, obtains, maintains or in any way accesses or uses Confidential Information or Data, then Connecting Party, and its agents, contractors, and subcontractors of any tier shall maintain Network Security & Privacy Liability coverage, including Professional Errors & Omissions, throughout the term of this Contact and for a period of two (2) years thereafter, with a minimum required limit of $5,000,000 each claim;
7.9.8. Cancellation or termination of policies providing coverage hereunder, as it affects the interest of Kern River, shall be effective not less than thirty (30) days after written notice of cancellation or termination is received from the insuran ce company by Connecting Party except for non -payment of premium which shall require ten (10) days prior written notice. Prior to commencing work under this Agreement, Connecting Party shall deliver certificates of insurance evidencing the existence of ins urance provided for above. Connecting Party shall provide Kern River with annual renewal certificates evidencing the required coverages so long as this Agreement is in effect;
7.9.9. Irrespective of the requirements as to insurance to be carried, the insolvency, bankruptcy, or failure of any such insurance company carrying insurance for Connecting Party, or failure of any such insurance company to pay claims occurring shall not be held to waive any of the provisions of this Agreement. All of the above- described insurance policies, together with all other insurance policies now owned or purchased in the future by Connecting Party relating to work to be performed hereunder, shall contain provisions that the insurance companies will have no right of recovery or subrogation against Kern River, its designee, or any of its subsidiary or affiliated companies. Kern River shall also be named as an additional insured under all policies required (with the exception of the Worker’s Compensation and employer’s liability policies) with respect to the indemnity obligations assumed herein. Any and all deductibles, self -insurance, self -insured retentions or retrospective premium arrangements that may be carried in the above described insurance policies shall be assu med by, for the account of, and at the sole risk of the respective first named insured party. All required insurance policies shall provide that the policy is primary and will not contribute with any policy carried by the other Party;
7.9.10. Connecting Party shal l ensure that all contractors and subcontractors performing work under this agreement carry the insurance coverages and limits required in Section 7.9. All contractor and subcontractor policies shall be endorsed with waiver
of subrogation and additional in sured wording set forth above. Any deficiency in the coverage, policy limits, or endorsements of said contractors or subcontractors will be the sole responsibility of Connecting Party.
7.10. GOVERNING LAW. The construction, interpretation, and enforcement of th is Agreement shall be governed by and construed in accordance with laws of the State of California, excluding any conflict of law rule, which would refer any matter to the laws of a jurisdiction other than the State of California. Exclusive jurisdiction and venue shall lie in the United States District Court for the Central District of California, Eastern Division.
7.11. JOINT EFFORTS. The Parties stipulate and agree that this Agreement shall be deemed and considered for all purposes as prepared through the joint effort of the Parties and shall not be construed against one Party or the other as a result of the preparation, submittal or other event of negotiation, drafting or execution hereof.
7.12. WAIVER. A Party ’s failure to insist upon the performance of any of the terms and conditions set forth in this Agreement, or the waiver of any breach of any of the terms and conditions hereof, shall not be construed or deemed to be a waiver of any succeeding breach thereof, whether of like or different character or nature, but the same shall continue and remain in full force and effect as if no such failure or waiver had occurred. Moreover, any failure to exercise any right hereunder shall not be considered as a waiver of such right in the future.
7.13. SEVERABILITY. If any term or provision of this Agreement or the application thereof to any person or circumstance is held to be illegal, invalid or unenforceable under any present or future law, then (i ) such term or provis ion shall be fully severable, (ii ) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never been contained herein, and (iii) the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom.
7.14. SUCCESSION AND ASSIGNMENT. Connecting Party shal l not assign or transfer this Agreement, including by operation of law such as by purchase, merger or consolidation, without the express prior written consent of Kern River, which consent shall not be unreasonably withheld or delayed. Any such purported as signment, transfer or delegation without Kern River’s express written consent shall be null and void. No such Kern River consent shall be required if the assignee will meet and satisfy the credit requirements set forth in the applicable sections of the general terms and conditions of the Tariff, if any.
7.15. COUNTERPART SIGNATURES. This Agreement may be executed in one or more counterparts each of which when executed and delivered, including by facsimile or a scan in Portable Document Format (i.e., “.pdf”), sha ll be an original but all of which together shall constitute but one and the same instrument.
7.16. THIRD PARTY BENEFICIARIES. This Agreement is made for the express and exclusive benefit of Kern River and Connecting Party and no other person or party who is no t a
signatory hereto shall have the benefit of, or any right to seek enforcement or recovery under, this Agreement.
7.17. DISPUTE RESOLUTION. All disputes, claims, or controversies arising out of or relating to this Agreement shall be resolved in accordance with this Section 7.17.
Unless an express remedy is otherwise set forth in the Agreement, the Parties shall attempt in good faith to resolve through negotiation any dispute, claim, or controversy arising out of or relating to this Agreement. Either Party may initiate negotiations by providing written notice to the other Party setting forth the subject of the dispute, a statement of its position on the dispute, and its recommended solution to the dispute.
The Party receiving such notice shall respond in writing within ten ( 10) days with a statement of its position on, and recommended solution to, the dispute. If the dispute is not resolved by this exchange of correspondence, then representatives of each Party with full settlement authority shall meet in -person at a mutually agreeable time and place within thirty (30) days after the date the receiving Party provides its written response to the initial written notice in order to exchange relevant information and perspectives, and to attempt to resolve the dispute. If the dispute is not resolved by the in-person meeting, then either Party may assert its respective rights and remedies in a court of competent jurisdiction, as described in Section 7.10.
7.18. JURY WAIVER. To the fullest extent permitted by law, each of the parties hereto waives any right it may have to a trial by jury in respect of litigation directly or indirectly arising out of, under or in connection with this Agreement. Each party further waives any right to consolidate any action in which a jury trial has been waived with any other action in which a jury cannot be or has not been waived.
7.19. ATTORNEYS’ FEES. The prevailing party shall have the right to collect from the other party its reasonable costs and attorneys’ fees incurred in enforcing this Agreement.
7.20. CONFIDENTIALITY. Kern River has been advised and acknowledges that Connecting Party is a California public agency subject to laws and regulations requiring the disclosure to the public of certain information held by it, including without limitation, the California Public Records Act, Cal. Gov. Code section 6250 et seq . (“Disclosure Laws”). Kern River and Connecting Party agree to maintain the confidentiality of any information disclosed by the other Party that by its nature is considered proprietary or confidential, with the intention of the Parties to have such information specifically labeled as “Confidential” by the transmitting party (“Confidential Information”), in strict confidence and shall not cause or permit disclosure thereof to any third party without the express written consent of the other Party except to the extent necessary to comply with valid laws, including the Disclosure Laws, and regulations or orders of any court or agency having jurisdiction.
Connecting Party shall limit access to Co nfidential Information to those of its parent(s), affiliates, and their officers, directors, members, managers, employees, agents, contractor(s) at any tier or other representatives, including without limitation attorneys, accountants, consultants, and fin ancial advisors, who need to know the Confidential Information to facilitate the purpose of this Agreement and the work contemplated in this Agreement; provided however, those individuals shall be under the same obligations of
confidentiality as required by this Section of the Agreement. Subject to the Disclosure Laws, as applied to the Connecting Party, the foregoing restrictions on confidentiality and non-disclosure shall not apply to information (A) that is, at the time of disclosure, available to the general public; (B) that, following disclosure, becomes available to the general public through no fault of the recipient; or (C) that is disclosed to the recipient without restriction on disclosure by a third-party which has the legal right to disclose the same.
7.21. DISCLOSURE. The Parties specifically agree that disclosure of Confidential Information to regulatory authorities, including but not necessarily limited to FERC, shall be authorized.
If either Party becomes aware of a judicial or administrative proceeding or request that will require or may result in such disclosure to regulatory authorities (including any compliance with the Disclosure Laws), it shall so notify the other Party sufficiently in advance of any disclosure for such Party to take any and all actions necessary to prevent the disclosure and maintain the confidentiality of the Confidential Information.
7.22. AMENDMENTS. No amendments to, or modifications of, this Agreement shall be effective unless agreed to in a written agreement executed by Kern River and Connecting Party that expressly refers to this Agreement.
7.23. IMAGED DOCUMENTS. Any document generated by the Parties with respect to this Agreement, including this Agreement, may be imaged and stored electronically (“IMAGED DOCUMENT”). Imaged Documents may be introduced as evidence in any proceeding as if such were original business records and neither party shall contest the admissibility of Imaged Documents as evidence in any proceeding.
7.24. ENTIRE AGREEMENT. The entire agreement between the Parties shall include those provisions contained in this Agreement and any Exhibit, which supersede any prior understanding or written or oral agreement relative thereto. Each Exhibit is hereby incorporated into and made a part of this Agreement. In the event of a conflict between the terms of any Exhibit and the terms of this Agreement, the terms of this Agreement shall govern. The Exhibits to this Agreement are:
EXHIBIT A – MAJOR EQUIPMENT COMPRISING THE INTERCONNECT FACILITIES EXHIBIT B – INTERCONNECT FACILITIES COST ESTIMATE
EXHIBIT C – NET INCOME TAX LIABILITY CALCULATION
EXHIBIT D – SIGNAL LETTER AGREEMENT AND COURTESY DATA SIGNAL FORM EXHIBIT E – OPERATIONAL BALANCING AGREEMENT
EXHIBIT F – PREPAYMENT SCHEDULE
IN WITNESS WHEREOF, the Parties have duly executed this Agreement to be effective on the day and year first above written.
KERN RIVER GAS TRANSMISSION
Signature: ____________________________
Name: Mac McGuire
Title: VP, Customer Service and Business
Development
Date: ________________________________
CITY OF VICTORVILLE
Signature:
Name:
Title:
Date:
ATTEST
_____________________________________
Jennifer Thompson, City Clerk
APPROVED AS TO FORM
____________________________________
Andre de Bortnowsky, City Attorney
RISK MANAGEMENT
___________________________________
Lee Brown, City Risk Manager
EXHIBIT A
TO
INTERCONNECTION AGREEMENT
DATED __________
BETWEEN KERN RIVER GAS TRANSMISSION
AND
CITY OF VICTORVILLE
MAJOR EQUIPMENT COMPRISING THE INTERCONNECT FACILITIES
METER
1-1/2” Coriolis Meter
Filter/Separator
Meter Run/Bypass
Data Acquisition and Control Building
EXHIBIT B
TO
INTERCONNECTION AGREEMENT
DATED __________
BETWEEN KERN RIVER GAS TRANSMISSION
AND
CITY OF VICTORVILLE
INTERCONNECT FACILITIES COST ESTIMATE
EXHIBIT C
TO
INTERCONNECTION AGREEMENT
DATED __________
BETWEEN KERN RIVER GAS TRANSMISSION
AND
CITY OF VICTORVILLE
NET INCOME TAX LIABILITY CALCULATION
KERN RIVER GAS TRANSMISSION COMPANY
Contribution In Aid of Construction
Income Tax Gross-up Calculation
Transmission Plant - 15 Year MACRS with No Bonus Depreciation Project: VMUS Meter Station Federal Income Tax Rate: 21.00% California Income Tax Rate: 8.84%
Location: San Bernardino, CA Utah Income Tax Rate: 4.85%
Customer: City of Victorville Tax Year: 2024
California Apportionment 28.7640%
In-Service Date: July 1, 2024 Utah Apportionment 54.6804% Effective Tax Rate 25.10%
Plant Cost: $ 960,000 Discount Rate: 11.55% Year Plant Fed Tax Depr. CA Tax Depr Total Present Tax Benefit Income Tax Cost 15 Yr MACRS 22 Yr 200 DB SL Tax Benefit Value Lost Gross-up No Bonus No Bonus
1 960,000 48,000 43,632 11,962 11,962 0
2 91,200 83,307 22,736 20,382 2,354
3 82,080 75,734 20,478 16,457 4,021
4 73,872 68,849 18,444 13,288 5,156
5 66,490 62,590 16,613 10,729 5,884
6 59,837 56,900 14,962 8,662 6,300
7 56,688 51,727 14,131 7,334 6,797
8 56,688 47,024 14,037 6,531 7,506
9 56,688 42,749 13,951 5,819 8,132
10 56,688 38,863 13,873 5,187 8,686
11 56,688 35,330 13,802 4,626 9,176
12 56,688 32,115 13,737 4,128 9,609
13 56,688 29,199 13,679 3,685 9,994
14 56,688 30,737 13,710 3,311 10,399
15 56,688 30,733 13,709 2,968 10,741
16 28,329 30,737 7,160 1,390 5,770
17 30,734 617 107 510
18 30,735 617 96 521
19 30,735 617 86 531
20 30,736 617 77 540
21 30,735 617 69 548
22 30,734 617 62 555
23 15,365 309 28 281
960,000 960,000 960,000 240,995 126,984 114,011 152,171 (3) (1)
INVOICE PROOF
Plant Cost 960,000 Plant Cost 960,000
Income Tax Gross-Up 152,171 15.8511% (1) Inc. Tax Due on Invoice 279,155 (2) Pres. Value of Tax Depr. (126,984) (3)
Total Invoice 1,112,171 Net Cost to Kern River 1,112,171 Total Invoice (from above) 1,112,171
Combined Inc. Tax Rate 25.10%
Income Tax Due 279,155 (2)
EXHIBIT D
TO
INTERCONNECTION AGREEMENT
DATED __________
BETWEEN KERN RIVER GAS TRANSMISSION
AND
CITY OF VICTORVILLE
SIGNAL LETTER AGREEMENT AND COURTESY DATA SIGNAL FORM
2755 East Cottonwood Parkway
Salt Lake City, Utah 84121
P.O. Box 71400
Salt Lake City, Utah 84171-0400
<Month Day>, 2023
VIA ELECTRONIC MAIL
<Customer POC>
<Company Name>
<Street Address>
<City, State Zip>
Re: Signal Letter Agreement for <Meter Name>
Dear <Customer POC>:
This Signal Letter Agreement (“Agreement”) will set forth the agreement between Kern River Gas Transmission Company (“Kern River”) and <Customer Name> (“Customer”) concerning the use of certain operations information.
Kern River will provide Customer with the operations information identified on Attachment A for customer’s use in viewing and monitoring gas flow data, including a corrected gas flow rate representing the volume s being delivered to Customer. Kern River provides this information to Customer without receipt of consideration from Customer, and Customer further understands that such information may be discontinued, altered or limited by Kern River at any time without notice.
Customer accordingly understands and agrees that the operational information provided by Kern River is provided with absolutely no warranties or representations from Kern River as to the accuracy, consistency, availability, or continued accessibility of such information, and any and all warranties, whether express or implied, are hereby expressly disclaimed. Customer further agrees
that such operational information will not be used or relied upon in any billing, volume nomination or other dispute of any kind which may arise between Customer and Kern River. Customer hereby releases Kern River f rom any and all liability of any nature whatsoever which may arise in connection with Customer’s use of such information, and Customer shall defend and indemnify Kern River against any and all liabilities to third parties which may arise in connection with Customer’s use of such information. TO THE FULLEST EXTENT PERMITTED BY LAW,
EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEME NT. EACH PARTY FURTHER
WAIVES ANY RIGHT TO CONSOLIDATE ANY ACTION IN WHICH A JURY TRIAL HAS
BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.
Any entity, which shall merge or consolidate with either party, or acquire by purchase substantially all of the assets of either party, shall be subject to the obligations of its predecessor to this agreement, and either party may assign this agreement to such successor-in-interest or affiliates.
Any notice, request, or other communication provided for in this letter shall been deemed duly given if provided in writing, sent U.S. Mail, nationally recognized express courier service, email or other mutually acceptable means and addressed to the respective Party at the address stat ed below or such other address as either Party shall respectively hereinafter designate in writing from time to time.
<Company Name> Kern River Gas Transmission Company
<Street Address> 2755 E. Cottonwood Parkway, Suite 300
<City, State Zip> Salt Lake City, UT 84121
Technical Contact: Technical Contact: Manager, Technical Services
Phone: Phone: (801) 937-6343
Cell: Cell: (801) 754-1547
Sincerely,
Scott Miles, Director
Engineering Services and Integrity Management
Accepted and agreed to this ____ day of ________, 2023.
___________________________________
(Print Name)
___________________________________
(Signature)
ATTACHMENT A
COURTESY DATA SIGNAL FOR RANGE METER STATION
Kern River offers several courtesy data signals for customer's informal use in viewing and monitoring recent gas flow data. Kern River's offer to provide such signals is contingent upon customer's acceptance and execution of Kern River's Signal Letter Agreement.
Two options are available:
1. Internet – Flat Transfer Protocol (FTP) OR Daily Report via e-mail OR
2. Analog (the number of local 4-20mA analog signals is limited to three)
Kern River encourages its customers to obtain any required signals through the Internet using FTP, or through daily reports via email.
Kern River provides courtesy signals in lieu of its customers physically connecting transmitters, transducers, or equipment to meters or other facilities operated as part of Kern River’s interstate Transmission system.
1) SIGNAL AVAILABLE VIA FTP OR EMAIL (CHECK DESIRED TRANSFER METHOD) ☐FLAT-FILE VIA FILE TRANSFER PROTOCOL (FTP)1 OR ☐ DAILY REPORT VIA EMAIL2
☐Instantaneous Total Station Flow Rate (Mscf/d) Gas Composition data3 ☐Instantaneous Total Station Energy Flow Rate3 (Dth/d) ☐Nitrogen (N2) (mole %) ☐Pressure at Kern River Pipeline or Lateral (psig) ☐Carbon Dioxide (CO2) (mole %) ☐Pressure at Customer Interconnect (psig) ☐Methane (C1) (mole %) ☐Primary Meter Temperature (F) ☐Ethane (C2) (mole %)
☐Accumulated Daily Total Flow (Mscf) ☐Propane (C3) (mole %) ☐Accumulated Daily Total Energy 3 (Dth) ☐Iso-Butane (I-C4) (mole %) ☐Higher Heating Value3 (dry) (btu/scf) ☐Normal-Butane (N-C4) (mole %) ☐Specific Gravity3 ☐Iso-Pentane (I-C5) (mole %)
☐Sulfur (Total)3 (grains/100 scf) ☐Normal-Pentane (N-C5) (mole %) ☐Sulfur (Hydrogen Sulfide – H2S)3 (grains/100 scf) ☐Hexane (C6) (mole %) ☐Heptane (C7) (mole %)
☐Octane (C8) (mole %)
☐Nonane+ (C9+) (mole %)
OR
2) ANALOG4 (CHECK DESIRED SIGNALS)
☐Instantaneous Total Station Flow Rate (Mscf/d) ☐Pressure at Customer Interconnect (psig) ☐Instantaneous Total Station Energy Flow Rate3 (Dth/d) ☐Primary Meter Temperature (°F) ☐Pressure at Kern River Pipeline or Lateral (psig) ☐Control Valve Position (% Open) ☐List Others (limited by availability):_____________________________________________________
1 The Flat File Internet system allows the customer to access data in a text file through the Internet. Security is assured by using FTP with username and password protection. The data is updated as frequently as every 5 minutes or as infrequently as every gas day depending o n the customer’s requirements.
2 The daily email report method allows the customer to receive previous gas day values in a formatted report delivered via email. 3 Gas composition, sulfur analysis and energy data is provided from the most representative of Kern River’s area Chromatographs and sulfur analyzers and is not warranted as instantaneous data at the meter station site. 4 Analog signal systems require the customer to install the necessary facilities in order to connect to Kern River’s facilities at a defined demarcation point.
EXHIBIT E
TO
INTERCONNECTION AGREEMENT
DATED __________
BETWEEN KERN RIVER GAS TRANSMISSION
AND
CITY OF VICTORVILLE
OPERATIONAL BALANCING AGREEMENT
OPERATIONAL BALANCING AGREEMENT
BETWEEN
<OPERATOR NAME>
AND
KERN RIVER GAS TRANSMISSION COMPANY
CONTRACT NO. ___________
THIS AGREEMENT ("OBA" or "Agreement”) is made and entered into as of this _____ day of ___________________________, _____, to be effective ____________________, _____, by and between <OPERATOR NAME> ("Operator") and KERN RIVER GAS TRANSMISSION COMPANY ("Kern River") (hereinafter referred to collectively as the "Parties" or individually as "Party".
WITNESSETH
WHEREAS, the facilities operated or to be operated by Operator and/or Kern River at location(s) specified in the Exhibit 1 are attached hereto and incorporated herein by this reference (hereinafter referred to as "Location," whether one or more);
WHEREAS, Operator and/or Kern River have entered into one or more agreements with Service Requesters (hereinafter referred to as "Service Requester(s)") for the transportation of gas to or fro m the Location on their respective systems (said agreements hereinafter referred to as "Service Requester Agreements");
WHEREAS, from time to time, the quantities of gas confirmed and scheduled by the Parties to be delivered to, or received from, the Loc ation (said quantities hereinafter referred to as the "Scheduled Quantities") may be greater or lesser than the quantities of gas which are actually delivered at the Location, resulting in over - or under - deliveries relative to Scheduled Quantities;
WHEREAS, the Parties desire to implement an operational balancing agreement in order to facilitate more efficient operations, accounting and systems management at the Location and on the Parties' respective systems; and
WHEREAS, the Parties desire to establish the method for resolving the differences that may occur between the Scheduled Quantities at the Location and the quantities of gas that are actually delivered at the Location.
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the Parties agree as follows:
1. Prior to the date and time of flow at each Location, the Parties shall confirm and schedule nominations that will be delivered or received at each Location. Such confirmation between the Parties shall be made electronically, unless otherwise mutually agreed to by the Parties.
2. The Parties intend that the quantity of gas actually delivered and received each day at each Location will equal the Scheduled Quantities for that Location. Each Party will allocate quantities that have been delivered and received at each Location among the Service Requester Agreements on its system pursuant to the Scheduled Quantities at such Locations. Any imbalance created, when the actual physical flow is different than t he Scheduled Quantities, will be the "Operational Imbalance," which will be the responsibility of the Parties to eliminate pursuant to this Agreement.
3. Estimated operating quantities flowing at each Location shall be used on a daily basis to determine t he estimated cumulative Operational Imbalance at such Location, with physical flow adjustments to be made as mutually agreed by both Parties to attempt to maintain or achieve an Operational Imbalance of zero at a Location.
4. a. The actual measured quanti ty of gas at the Location each month shall be determined by Kern River and communicated electronically to the Operator in accordance with NAESB Standard 2.3.7, unless otherwise mutually agreed. The actual measured quantity shall be determined pursuant to t he applicable provisions of Kern River's Tariff or applicable measurement procedures. Operational Imbalances shall be calculated initially by Kern River and shall be deemed to be correct unless either Party notifies the other Party in writing prior to the ninth business day of the month following the month to which the Operational Imbalance applies. Pursuant to NAESB Standard
2.3.26, Parties shall be allowed to dispute allocations for a period of six (6) months from the date of the initial month -end allocation with a three (3) month rebuttal period.
b. Operational Imbalances shall be resolved as follows: The Parties shall cooperate to minimize the daily over- and under- deliveries by maintaining daily contact, as necessary, to establish the rate at which gas shall be delivered to, or received from, Kern River in order to balance with the total daily Scheduled Quantity, adjusted for any agreed upon quantity of gas to reduce the cumulative Operational Imbalance. The Operational Imbalance shall be resolved within thirty (30) calendar days of the rendering of the Imbalance Statement by Kern River, unless otherwise agreed to by the Parties.
Either Party shall have the right to take actions of whatever nature may be required (including interruption or suspension of service to the Location) to correct any Operational Imbalances that may impair the operation of, threaten the integrity of, or interfere with maintenance of service on, such Party’s system.
5. In the event a capacity constraint occurs on either Party' s system that results in a curtailment of Scheduled Quantities through a Location, the Party on whose system the constraint has occurred shall determine the quantities that can be confirmed and shall notify the Service Requester(s) under the affected Servi ce Requester
Agreement(s). Any such change to Scheduled Quantities shall be confirmed electronically as required by Paragraph 1 above.
Likewise, if the constraint occurs at a Location, the Party on whose system the constraint has occurred shall determine the quantities that can be confirmed and shall notify the Service Requester(s) under the affected Service Requester Agreement(s), unless otherwise mutually agreed.
6. Operator shall be subject to any balancing and scheduling charges and penalties applicable to operators, as set forth in Kern River’s Tariff, as revised from time to time.
7. This Agreement is entered into in order to facilitate operations and accounting between the Parties, and shall have no effect upon the Service Requester Agreements or upon the effectiveness of any Party's Gas Tariff or General Terms and Conditions.
8. If a Party (X) has reasonable grounds for insecurity of the performance of any obligation under this Agreement by the other Party (Y) (including, without limitation, the o ccurrence of a material change in creditworthiness), X may demand Adequate Assurance of Performance from Y, which shall be provided within ten (10) business days of the demand. A “material change in creditworthiness” means that Y has experienced, in the re asonable opinion of X a material adverse change (i.e., a downgrade in credit rating from any rating agency, if applicable; default on indebtedness; restatement of financials; non-payment; catastrophic event; etc.) in its financial condition such that the a bility of Y to perform its obligations hereunder is materially impaired. “Adequate Assurance of Performance” shall mean security (a) in the form and for the term reasonably acceptable to X; and (b) in the amount of the highest monthly imbalance value owed by Y to X during the past 12 months (historical) computed at the highest monthly futures price for natural gas during the next 12 months (forward looking); provided, however, if 12 months of imbalance history are unavailable, any security amount reasonably acceptable to X based on X’s reasonable estimate of credit exposure.
To secure its obligations under this Agreement, each Party hereby grants to the other a continuing security interest in, lien on, and right of setoff against, all Adequate Assurance of P erformance it provides the other, and all proceeds thereof. The Parties authorize and shall take such further action as may reasonably be necessary to perfect and maintain said perfected security interests. Upon the occurrence and continuance of an event of default, the non-defaulting Party may (i) exercise all rights and remedies of a secured Party under applicable law with respect to Adequate Assurance of Performance; (ii) exercise rights of setoff against Adequate Assurance of Performance; (iii) draw on any cash escrow or letter of credit to its full amount, retaining any amount in excess of the defaulting Party’s obligations as Adequate Assurance of Performance; and (iv) liquidate all Adequate Assurance of Performance. The non - defaulting Party shall apply the proceeds realized upon exercise of such remedies to the defaulting Party’s obligations under this Agreement in such order as it elects, and the defaulting Party shall remain liable for any amounts owing after such application.
9. This Agreement shall be amended only by an instrument in writing executed by both Parties hereto. No promises, agreements or warranties additional to this Agreement other than as may be
contained in Kern River’s Gas Tariff will be deemed to be a part of this Agreement.
10. Notwithstanding the termination of this Agreement, the Parties agree to reconcile and eliminate any remaining Operational Imbalance pursuant to the terms and conditions of this Agreement within thirty (30) days of termination of this Agr eement or such other period of time as is mutually agreed to by the Parties.
11. This Agreement and the terms and conditions herein are subject to all present and future valid laws, orders, rules and regulations of duly constituted authorities having jurisdiction.
12. In the event a conflict exists or arises between this Agreement and Kern River’s FERC Gas Tariff, as amended from time to time, it is agreed and understood that the latter shall control.
13. This Agreement is for accounting and system management purposes only, and is entered into by the Parties with the understanding that the balancing activities provided for hereunder will not subject any non- jurisdictional entity to regulation by the Federal Energy Regulatory Commission as a "natural gas c ompany" under the provisions of the Natural Gas Act. If, at any time, it should be determined that such balancing activities do result in such regulation, then this Agreement shall immediately terminate, and any remaining Operational Imbalance shall be res olved by the Parties within thirty (30) days after termination of this Agreement or such other period of time as is mutually agreed to by the Parties.
14. This Agreement shall be binding upon and inure to the benefit of Operator and its successors and ass igns and Kern River and its successors and assigns. Notwithstanding the foregoing, Operator may not assign or delegate its rights or obligations hereunder without the express written consent of Kern River, which shall not be unreasonably withheld, and any such purported assignment or delegation without Kern River’s express written consent shall be void.
15. AS TO ALL MATTERS OF CONSTRUCTION AND INTERPRETATION, THIS AGREEMENT
SHALL BE INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. TO TH E FULLEST EXTENT PERMITTED BY LAW, EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY FURTHER WAIVES ANY
RIGHT TO CONSOLIDATE ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED
WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.
16. Any notice, request or statement provided pursuant to this Agreement shall be in written or electronic form a nd shall be considered as having been given, when delivered personally, or, when , faxed or sent by other electronic measures to the other Party at the place designated on Kern River’s Designated Site.
17. A waiver by either Party of any one or more def aults by the other Party hereunder shall not operate as a waiver of any future default or defaults, whether of like or different character.
18. This Agreement shall continue until terminated by either Party upon forty-eight (48) hours’ prior written notice.
19. Any document generated by the Parties with respect to this Agreement, including this Agreement, may be imaged and stored electronically ("Imaged Documents"). Imaged Documents may be introduced as evidence in any proceeding as if such were original business records and neither Party shall contest the admissibility of Imaged Documents as evidence in any proceeding.
20. A signature delivered by facsimile, e -mail in portable document format (.pdf) or DocuSign electronic signature system shall be deemed to be an original manual signature for purposes of this Agreement and shall be binding and have the same legal effect as an original manual signature. This Agreement may be signed in counterparts, each of which when signed shall be an original, but all of which shall together constitute one and the same instrument.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as set forth above.
<OPERATOR NAME> KERN RIVER GAS TRANSMISSION COMPANY
By: ______________________________ By: _______________________________
Name: ____________________________ Name: _____________________________
Title: ____________________________ Title: _____________________________
EXHIBIT 1
TO THE OPERATIONAL BALANCING AGREEMENT
BETWEEN
<OPERATOR NAME>
AND
KERN RIVER GAS TRANSMISSION COMPANY
CONTRACT NO. __________
Dated: [Insert Effective Date]
LOCATION(S)
Proprietary Gas
Party Name Transaction Point Code DRN No. Description
EXHIBIT F
TO
INTERCONNECTION AGREEMENT
DATED __________
BETWEEN KERN RIVER GAS TRANSMISSION
AND
CITY OF VICTORVILLE
PREPAYMENT SCHEDULE
The Initial Prepayment in the amount of $250,000 is due within fifteen (15) calendar days following the execution of this Agreement to cover the estimated cost of (1) detailed design, drafting, engineering, environmental and cultural surveys, and environmenta l permitting, if applicable.
The second prepayment in the amount of $ 710,000 is due no later than sixty (60) calendar days after the Initial Prepayment, to cover the estimated cost for items included in Exhibit B, minus the Initial Prepayment – materials, final design, final engineering, construction and freight.
The third and final payment is due thirty (30) days after completion of the Interconnect Facilities, to cover the Net Income Tax Liability and any cost overruns.
ATTACHMENT C
Project Site Diagram
ATTACHMENT D
Notice of Exemption
Notice of Exemption
To: County Clerk Fr om: City of Victorville
County of San Bernardino 14343 Civic Drive
385 North Arrowhead Avenue, Second Floor Victorville, CA 92392 San Bernardino, CA 92415-0 130 Engineering Dept.
Activity: Interconnection of City of Victorville Municipal Utility Services (VMUS) natural gas distribution system with Kern River Gas Transmission Company’s (KRGT) interstate natural gas pipeline system.
Activity Location - Specific: Southern California Logistics Airport (SCLA)
Activity Location - City: Victorville Activity Location - County: San Bernardino
Description of Activity: Interconnection of VMUS natural gas distribution system with KRGT’s interstate natural gas pipeline system.
Name of Public Agency Approving Activity: City of Victorville
Name of Person or Agency Carry Out Activity: City of Victorville
Exemption Status:
Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec . 21080(b)(3); 15269(a));
Emergency Project (Sec . 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number : Class 1 15301(b) and Class 3 15303(d)
Statutory Exemptions. State code number:
Reasons why project is exempt: This project involves the installation of piping, meters, valves, regulators, fittings, odorizer, conduit, other appurtenances, and small structur es to connect the existing KRGT interstate pipeline to the existing VMUS distribution system, allowing an alternate route for the transport of natural gas to VMUS customers. The project will not affect the volume of gas delivered to VMUS customers or the capacity of the KRGT pipeline and constitutes a minor alteration of existing facilities that provide public utility services (natural gas) involving negligible or no expansion of use beyond that currently existing as permitted by Class 1. Additionally, Class 3 permits construction and location of limited num bers of new, small facilities and exempts utility extensions. None of the exceptions to exemption in CEQA Guidelines section 15300.2 are applicable. Facilities will not be located in a sensitive environment, an area of critical concern, nor have any unusual circumstances been identified. No successive projects of the same type are proposed. No impact to scenic resources have been identified and it is not adjacent to any scenic highways. The project will not be constructed on a state-designated hazardous waste site, nor does it directly affect any historical resource.
Lead Agency Contact Person: Brenda Hampton, Director of Electric Utility Services
Area Code/Telephone Extension: (760) 243-6341
If filed by applicant:
1. Attach certified document of exemption finding.
Notice of Exemption
2. Has a Notice of Exempt ion been filed by t he public agency approving the project:
Yes No
Signature: Date: Title:
Signed by Lead Agency
Signed by Applicant
Item Number: 13
City Council / Board of Directors
Written Communications
Meeting of: February 7, 2023
Submitted By:
Doug Mathews, Director of Public Works and Water
Subject:
Approval to enter into a Five-Year Lease of Carryover Free Production Allowance Recommendation:
That the Honorable Victorville Water District Board of Directors:
(1) Approve a five-year agreement by and between the Victorville Water District and the Helendale Community Services District to lease Carryover Free Production Allowance; and
(2) Authorize the District’s General Manager to execute the lease.
Fiscal Impact:
The Victorville Water District (District) budgets to cover the cost of its Replacement Obligation to the Mojave Basin Watermaster on an annual basis. Over the past 5 Water Years (October 1st through September 30 th), the District has averaged a Replacement Obligation of 7,718 acre feet (AF) per year; and at the Watermaster’s rate this translates to average annual cost of just under $4,500,000.
The District reduces its annual cost by leasing unused Free Production Allowance (FPA) from other Producers in the Alto Subarea every year. Helendale Community Services District (Helendale) is one of those Producers. Historically, they have leased an average of 640 AF on an annual basis to the District.
The proposed lease would allow the District to reduce its annual Replacement costs by locking in 85% of Helendale’s Carryover FPA for a five-year term, and leasing it at a 10% discount from the Watermaster’s rate. The lease would become effective this Water Year (October 1, 2022 – September 30, 2023), and the cost savings would be reflected in the District’s FY 2023-24 budget.
The following table provides an estimate of the savings the District anticipates based on the amount of Carryover that the District has leased from Helendale in the past and an 2 9
4 9
assumed 5% increase in the Watermaster’s rate. Staff estimates that the minimum savings it will see is just under $200,000 over the next five years with this lease agreement.
Estimated Water Estimated Estimated AF Estimated
Fiscal Year Master Rate HCSD Rate To Be Leased Savings
2023-2024 $649.95 $584.96 544 $35,357.28
2024-2025 $682.45 $614.20 544 $37,125.14
2025-2026 $716.57 $644.91 544 $38,981.40
2026-2027 $752.40 $677.16 544 $40,930.47
2027-2028 $790.02 $711.02 544 $42,976.00
Strategic Plan Goal:
This item aligns with Goal A, Strategy 3 in the Strategic Plan, “Financial Stability” and “Identify new revenue opportunities and cost control measures.” Background:
The Mojave River groundwater basin is approximately 1,400 square miles and extends from the San Bernardino and the San Gabriel Mountains in the south to north of Harper and Coyote Lakes (dry). The groundwater basin is bordered on the west by Antelope Valley and shares its southeastern boundary with the Morongo groundwater basin. For water-management purposes, the Mojave River Basin (or Mojave Basin Area) is divided into five distinct but hydrologically interrelated “subareas”: Alto (Upper Basin), Baja (Lower Basin), Centro (Middle Basin), Este (East Basin), and Oeste (West Basin), see Attachment B. The District’s water is pumped from a local underground basin in the Alto Subarea of the Upper Mojave River Basin.
On May 30, 1990, a lawsuit was filed by the City of Barstow and Southern California Water Company alleging that the cumulative increase in water use in the upper part of the Mojave Basin caused, or threatened to cause, a reduction in the natural flow of water to the central part of the Mojave Basin. Intense negotiations between all parties resulted in a Stipulated Judgment that set forth a proposed physical solution to the overdraft occurring in the Mojave Basin Area. A Final Judgment (Judgment), adopting the physical solution set forth in the Stipulated Judgment, was entered on January 10, 1996, see Attachment C.
In summary, each subarea was found to be in overdraft to some extent due to the use of water by all the Producers in their particular subarea. The overdraft was occurring due to groundwater pumping by Producers at a rate that exceeded the natural water inflows required to keep the aquifer in balance. To maintain a proper balance within each subarea, a Free Production Allowance (FPA) was established for each Producer. FPA is the amount of water a Producer can pump in a specific subarea in one year without incurring a Replacement Obligation. This was accomplished by first determining the maximum annual water production (Base Annual Water Production or “BAP”) for each Producer during the five-year period from 1986 to 1990 (Base Period). Each Producer’s initial FPA was calculated as a percentage share of the total BAP for the subarea. The 2 9
4 9
FPA for all Producers in a subarea is subject to an annual rampdown in order to maintain the subarea in balance.
Producers that pump water in excess of their current FPA are required to purchase Replacement Water through Mojave Water Agency (MWA). As a state water contractor, MWA is entitled to purchase an annual allotment of up to 89,800 acre-feet (AF) of water from the State Water Project (SWP) via the California Aqueduct. A Producer can also purchase additional FPA or lease unused FPA from another Producer in their subarea to increase their annual FPA; thus, reducing their annual Replacement Obligation.
Discussion:
Historically, the District has been able to lease the necessary amount of FPA from other Alto Producers to satisfy its Replacement Obligation. Due to continued rampdown in the Alto Subarea (currently at 54.4% of BAP) and increased pumping by Producers, the market for available FPA for lease or purchase is dwindling and becoming more competitive. Last year was the first time that the District was unable to lease sufficient unused FPA from other Alto Producers to cover its Replacement Obligation; thus, requiring the District to pay for 4,546 AF at the Watermaster rate for a total of $2,559,398.
Had the District been able to lease 4,546 AF from other Producers, the District would have seen a savings of just under $255,940.
As the High Desert continues to grow, the demand for water will continue to increase, and the amount of unused FPA available for leasing will be scarcer. These circumstances will make it more challenging for the District to lease unused FPA at a discounted rate. As a result of the challenge the District is facing, staff is proposing a five-year lease that will ensure HCSD will lease their unused FPA to the District and not another Producer within the Alto Subarea. District staff is continually seeking ways to help control costs and with the support of our General Manager and the Board’s authority, we will continue to seek other long-term leases to help further reduce the costs of providing safe and reliable drinking water for our customers.
Staff remains available for any questions the Board may have.
Attachments: A. Lease of Carryover Free Production Allowance B. Map of the Mojave Water Basin
C. Judgment After Trial
Attachment A
Lease of Carryover
Free Production Allowance
-1-
Lease of Carryover Free Production
Allowance
This Lease of Carryover Free Production Allowance ("Lease"), dated this _______day of _______________, 2023, for reference purposes only, is made by and between the Helendale Community Services District ("Transferor", hereinafter " HCSD"), and the Victorville Water District, on behalf of its Improvement District #1 ("Transferee", hereinafter " VWD"), with respect to the facts set forth in the following Recitals. HCSD and VWD are sometimes referred to hereinafter individually as a " Party" and collectively as the "Parties".
RECITALS
A. Reference is hereby made to that certain Judgment entered January 10, 1996, as such judgment may have been further amended prior to the Effective Date (as so amended, the "Judgment") in the case entitled City of Barstow, et al. vs. City of Adelanto, et al. , Case No. 00208568 in the Superior Court of the State of California for the County of Riverside (the "Court"). All initially capitalized terms used but not defined herein shall have the meanings ascribed to them in the Judgment.
B. The Mojave Water Agency has been appointed by the Court as the watermaster to administer and enforce the provisions of the Judgment (in such capacity, the "Watermaster"). According to the records maintained by the Watermaster, HCSD is currently the owner of Base Annual Production Rights in the Alto subarea of the Mojave Basin Area (" Basin"), together with certain Free Product ion Allowance ("FPA") and FPA Carry Over ("Carryover") rights.
C. The Parties possess an adjudicated Base Annual Production Right (as defined in the Judgment), which entitles them to annually extract groundwater from the Basin. The Judgment refers to the annual period as beginning October 1 and ending September 30 of the following year ("Water Year"). The Parties annual extraction allowance after the Rampdown adjustment is defined by the Judgment as FPA. If any Party does not pump its annual FPA, the unused FPA is converted to and classified as Carryover FPA (" Carryover") in the following Water Year. The Parties are allowed to lease or extract the Carryover the next Water Year, as those terms and rights are defined in the Judgment.
D. On the terms and conditions set forth herein, HCSD desires to lease to VWD, and VWD desires to lease from HCSD, on a temporary basis, eighty- five percent (85%) of HCSD's available Carryover in the Alto Subarea of the Mojave Basin Area (the " Leased Carryover") on an annual Water Year basis for the duration of this Lease. The remaining fifteen percent (15%) is defined as HCSD Holdback.
E. VWD produces water from the Basin and exceeds its annual FPA and desires to lease the Leased Carryover from HCSD to offset its FPA deficit in the Basin during the term of this Lease. The Lease may be used to offset VWD current production or to satisfy the Watermaster Replacement obligation assessments incurred during the previous Water Year.
AGREEMENT
NOW THEREFORE, in consideration of the mutual covenants contained herein, and for other -2-
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:
1. Recitals. The facts set forth in the above recitals are true and correct and are incorporated and made as part of this Lease by this reference, together with any definitions set forth therein.
2. Definitions. Unless specifically defined herein, all capitalized terms used in this Lease shall have the same meaning as provided to those terms by the Judgment.
3. Agreement to Transfer (Lease) Carryover FPA to VWD. HCSD hereby agrees to lease to VWD the Leased Carryover. HCSD does not warrant that VWD shall be able to extract any quantity of groundwater as a result of this Lease. Furthermore, HCSD acknowledges that it is leasing the Leased Carryover "as -is" without any warranty by HCSD as to the extent of any rights, if any at all, afforded by the Judgment in relation to the Leased Carryover. VWD shall use the Leased Carryover pursuant to, and consistent with, the terms of this Lease and the Judgment.
4. Term. The Parties agree that this Lease shall pertain to the use of HCSD's Leased Carryover for five (5) Water Years, commencing Water Year 2022- 23 and ending Water Year 2026-27 ("Lease Term"). The Water Years comprising the Lease Term during which VWD shall apply HCSD’s Leased Carryover pursuant to this Lease are as follows:
4.1 Effective Date. The date upon which this Lease has been fully executed by both Parties is the "Effective Date."
4.2 Termination. This Lease may be terminated upon the mutual written consent of the Parties.
5. Lease Payment. For the first year of Lease Term and every subsequent year of the Lease Term, the lease payment shall be calculated on a per-acre foot basis equal to ninety-percent (90%) of the Replacement Water Assessment ("Replacement Assessment") annually set by the Watermaster for Producers within the Mojave Alto Subarea for the current Water Year in which the Lease Carryover is transferred, which shall be multiplied by the Leased Carryover (the " Lease Payment").1 For the Lease Term, VWD shall pay the Lease Payment to HCSD within thirty (30) days following Watermaster's annual acceptance and approval of the Watermaster Application, as defined below (" Lease Payment Due Date"). If the Watermaster adopts a new rate structure, the new Replacement Assessment shall be based on Watermaster's new adopted rate classification for VWD and HCSD.
1 For example, if, in 2020 -21 Water Year, Watermaster adopts a Replacement Water Assessment for Producers within Mojave Basin Area Alto Sub -area of $600 per acre foot, then the Lease Payment shall be $540 per acre foot of the Leased Carryover (90% of the Watermaster Replacement Water Assessment).
Contract
Year Water Year
Unused FPA
from Water Year Paid in FY
1 10/1/22-9/30/23 10/1/21-9/30/22 23/24
2 10/1/23-9/30/24 10/1/22-9/30/23 24/25
3 10/1/24-9/30/25 10/1/23-9/30/24 25/26
4 10/1/25-9/30/26 10/1/24-9/30/25 26/27
5 10/1/26-9/30/27 10/1/25-9/30-26 27/28
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5.1 Watermaster Transfer Form . HCSD will execute, acknowledge, and deliver to VWD a Request for Assignment of Carryover Right (also known as Watermaster transfer form Exhibit "I") and/or a Temporary Assignment of FPA (also known as Watermaster transfer form Exhibit "D"), depending on the type of transfer (collectively or individually the " Watermaster Application"). HCSD shall deliver the Watermaster Application no later than fifteen (15) business days after Watermaster adopts and approves the Draft Annual Report from the previous Water Year from which the Carryover originated. Upon receipt, VWD shall execute and acknowledge the Watermaster Application, and deliver a fully-executed original thereof to the staff of the Watermaster for filing. At the time of such filing, VWD shall request that the Watermaster place the Watermaster Application for approval on the meeting agenda of the earliest practicable public meeting of the Board of Directors of the Watermaster (the "Watermaster Board ").
5.2 Payment Mechanism . VWD shall make its Lease Payment to HCSD by electronic funds transfer to an account as specified by HCSD, the number of which will be provided to VWD by notice . In the event that the Lease Payment is not paid in full by the Lease Payment Due Date, the unpaid portion of the Lease Payment shall accrue interest at the rate of five percent (5.0%) per annum.
5.3 Taxes and Assessments. VWD shall pay any transfer fee or transfer assessments, if any, pertaining to the Leased Carryover during the term of the Lease.
6. Lease of Carryover Only. VWD’s rights under this Lease solely pertain to VWD’s lease and subsequent use of the Leased Carryover during the term of this Lease. This Lease does not include or pertain to the use of any groundwater production facilities or permanent Base Annual Production Rights. Further, nothing in this Lease, nor VWD’s use of the Leased Carryover as provided herein, shall vest (i) any right to the Leased Carryover in VWD other than as leased for the term of this Lease, or (ii) any other contractual rights not expressly stated herein.
7. Lease Quantity. VWD acknowledges that the annual Carryover quantity varies based on HCSD's extraction and Watermaster-verified production of FPA from the previous Water Year. The quantity of Leased Carryover shall be eighty-five percent ( 85%) of the total Carryover verified by Watermaster for HCSD from the previous Water Year , as stated in the Annual Watermaster report. If HCSD's verified production exceeds its annual FPA allocation in any Water Year during the term of this Lease, HCSD may retain all or a portion of its Carryover ("Retained Carryover"). HCSD must notify VWD within fifteen (15) business days after Watermaster’s verified production objection period has expired of the amount of HCSD’s Retained Carryover, if any. HCSD may not lease or transfer its Retained Carryover to any stipulating party under the Judgment, other than VWD, during that Water Year. This lease and transfer limitation of the Retained Carryover does not apply to HCSD Holdb ack water.
8. Watermaster Review of Annual Transfer Application Filings. If for any reason Watermaster denies the temporary transfer of the Leased Carryover as set forth in any Watermaster Applications filed pursuant to Section 5.1 of this Lease, when such Watermaster determination becomes final and is no longer subject to judicial review, either Party shall have the option, upon thirty (30) days’ advance notice to the other, to terminate the Lease. VWD shall be responsible for payment of all application fees associate d with the submittal and Watermaster review of Watermaster Applications filed for the temporary transfers of the Leased Carryover as set forth in this Lease, including the payment of any costs or fees to reimburse Watermaster for costs related to VWD disputes with the -4-
Watermaster, should the Watermaster require such payment as a condition of approving the transfer applications.
9. Compliance with the Judgment. The Parties shall comply with all requirements set forth in the Judgment, including, but not limited to, the timely payment of all taxes and assessments, the submittal of production reports, and any other legal requirements or limitations associated with the exercise of the Leased Carryover. Unless otherwise provided for herein, each Party shall bear its own costs associated with such compliance.
10. Representations and Warranties of HCSD. HCSD makes the following representations, warranties and covenants to VWD:
10.1 Due Organization. HCSD is a Community Services District, duly formed and lawfully existing under the laws of the State of California.
10.2 Title. HCSD owns Base Annual Production Rights in the Alto subarea of the Basin. HCSD has not alienated, encumbered, transferred, optioned, leased, assigned, or otherwise conveyed its interest or any portion of its interest in the Leased Carryover or any portion thereof, nor has HCSD entered into any agreement (other than this Lease) to do so.
10.3 Corporate Power and Authority. HCSD has full right, power and authority to enter into this Lease and to perform its obligations hereunder, and the persons executing this Lease on behalf of HCSD have the right, power, and authority to do so.
10.4 Enforceability. This Lease constitutes the legal, valid and binding obligation of HCSD, enforceable against HCSD in accordance with its terms. Neither this Lease nor the consummation of any of the transactions contemplated hereby violates or shall violate any provision of any agreement or document to which HCSD is a party or to which HCSD is bound.
10.5 No Conflicts. To HCSD's current and actual knowledge, there is not now, nor will this Lease in any material respect constitute, any violation of any law, ordinance, rule or regulation, or any violation of any administrative or judicial order affecting the Carryover, including without limitation, the Judgment.
10.6 No Other Consents Needed. Except as otherwise provided herein, no consent from any third party or any government agency or authority is required before HCSD may lease the Carryover pursuant to this Lease.
All representations, warranties and covenants of HCSD in this Lease are made as of the date of this Lease, and as of the Effective Date. It shall be a material default if HCSD is unable to make such representations and warranties truthfully as of the Effective Date.
11. Representations and Warranties of VWD. VWD makes the following representations, warranties and covenants to HCSD:
11.1 Due Organization. VWD is a County Water District and subsidiary district of the City of Victorville, duly organized and validly existing under the laws of the State of California.
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11.2 Power and Authority. VWD has the right, power and authority to enter into this Lease and to perform its obligations hereunder, and the person(s) executing this Lease on behalf of VWD have the right, power and authority to do so.
11.3 Enforceability. This Lease constitutes the legal, valid and binding obligation of the VWD, enforceable against VWD in accordance with its terms. Neither this Lease nor the consummation of any of the transactions contemplated hereby violates or shall violate any provision of any agreement or document to which VWD is a party or to which VWD is bound.
11.4 No Conflicts. To the best of VWD's current and actual knowledge, there is not now, nor will this Lease in any material respect constitute, any violation of any law, ordinance, rule or regulation, or any violation of any administrative or judicial order which would prohibit VWD from leasing the Carryover.
All representations and warranties of VWD in this Lease are made as of the date of this Lease, and as of the Effective Date. It shall be a material default if VWD is unable to make such representations and warranties truthfully as of the Effective Date.
12. Indemnification.
12.1 VWD shall hold harmless, defend and indemnify HCSD, its officers, agents, volunteers and employees (hereinafter " HCSD Indemnified Parties") from and against all liabilities, obligations, claims, damages, losses, actions, judgments, suits, costs and expenses (collectively “ Claims””) that HCSD Indemnified Parties may incur or suffer resulting from or arising out of or in connection with any negligent act or omission or willful misconduct on the part of the VWD, its officers, officials, agents, volunteers, and employees, related to VWD's lease and use of the Carryover as provided by this Lease. The foregoing notwithstanding, the hold harmless, indemnity, and defense obligations of VWD shall not extend to any Claims incurred or suffered by the HCSD Indemnified Parties
resulting from or arising out of or in connection with any negligent act or omission or willful misconduct on the part of the HCSD Indemnified Parties.
12.2 HCSD shall hold harmless, defend and indemnify VWD, its officers, officials, agents, volunteers, and employees (hereinafter " VWD Indemnified Parties") from and against all liabilities, obligations, claims, damages, losses, actions, judgments, suits, costs and expenses (collectively “Claims””) that VWD Indemnified Parties may incur or suffer resulting from or arising out of or in connection with any negligent act or omission or willful misconduct on the part of the HCSD, its officers, agents, and employees, related to HCSD's lease and use of the Carryover as provided by this Lease. The foregoing notwithstanding, the hold harmless, indemnity, and defense obligations of HCSD shall not extend to any Claims incurred or suffered by the VWD Indemnified Parties
resulting from or arising out of or in connection with any negligent act or omission or willful misconduct on the part of the VWD Indemnified Parties.
13. Dispute Resolution. In the event of any default in the terms hereof, or in the event that any dispute arises between the Parties relating to this Lease or the rights and obligations arising from the provisions hereof, the Parties in dispute shall attempt in good faith to resolve the controversy or the default.
However, if the Parties in dispute cannot agree upon a resolution of the controversy or the default within thirty (30) days, the dispute shall be submitted to mediation prior to commencement of arbitration or litigation; provided that such requirement shall not prevent either Party from commencing arbitration or litigation within any applicable statute of limitations period.
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14. General Provisions.
14.1 Further Assurances. At any time and from time to time after the date hereof, each Party agrees to take such actions and to execute and deliver such documents as the other Party may reasonably request to effectuate the purposes of this Lease.
14.2 Assignment. Neither this Lease nor any of the rights, interests, or obligations hereunder may be assigned by any Party without the other Party's prior written consent, which may be withheld in a Party's sole and absolute discretion, and any assignment of this Lease or any of the rights, interests, or obligations hereunder shall be of no force or effect until the proposed assignee agrees in writing to be bound by all of the terms and conditions of this Lease and such signed writing is delivered to the non- assigning Party. Subject to the foregoing restrictions, the provisions of this Lease shall be binding upon and inure to the benefit of the assigns and successors -in-interest of the Parties.
14.3 Amendment. Except as otherwise provided herein, neither this Lease nor any provision hereof may be waived, modified, amended, discharged, or terminated except by an instrument in writing signed by the Party against which the enforcement of such waiver, modification, amendment, discharge, or termination is sought, and then only to the extent set forth in such writing.
14.4 Entire Agreement. This Lease and the agreements provided for herein constitute the entire understanding between the Parties with respect to the matters set forth herein, and they supersede all prior or contemporaneous understandings or agreements between the Parties with respect to the subject matter hereof, whether oral or written.
14.5 Notices. Any notice hereunder shall be deemed suf ficient if given by one Party to the other in writing and either delivered in person, transmitted by electronic mail or facsimile and acknowledgment of receipt is made by the receiving party, or deposited in the United States mail in a sealed envelope, certified and with postage and postal charges prepaid, and addressed as follows:
If to HCSD, to: Helendale Community Service District
Attention: Kimberly Cox, General Manager
26540 Vista Road
P.O. Box 359
Helendale, CA 92342
If to VWD, to: Victorville Water District
Attention: General Manager
14343 Civic Drive
Victorville, CA 92392
With a Copy to: Green de Bortnowsky, LLP
Attention: Andre de Bortnowsky, District Counsel
30077 Agoura Court, Suite 210
Agoura Hills, California 91301
14.6 Governing Law. This Lease shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, without giving effect to any choice- -7-
of- law or conflicts-of-laws rule or principle that would result in the application of any other laws.
14.7 Waiver. No waiver of any provision of, nor any consent to any exception to the terms of this Lease, shall be effective unless in writing and signed by the Party to be bound and then only for the specific purpose, extent and circumstance so provided. No failure on the part of any Party to exercise or any delay in exercising any right hereunder shall be deemed a waiver thereof, nor shall any single or partial exercise preclude any further or other exercise of such or any other right.
14.8 Liberal Construction. This Lease constitutes a fully- negotiated agreement among commercially sophisticated Parties, each assisted by legal counsel, and the terms of this Lease shall not be construed or interpreted for or against any Party hereto because that Party or its legal representative drafted or prepared such provision.
14.9 Severability. If any provision of this Lease is invalid, illegal or unenforceable, such provision shall be deemed to be severed or deleted from this Lease and the balance of this Lease shall remain in full force and effect notwithstanding such invalidity, illegality or unenforceability.
14.10 Good Faith and Fair Dealing. The Parties hereto acknowledge and agree that the performances required by the provisions of this Lease shall be undertaken in good faith, and with each of the Parties dealing fairly with each other.
14.11 No Third-Party Beneficiaries. This Lease does not create, and shall not be construed to create, any rights enforceable by any person, partnership, corporation, joint venture, limited liability company or other form of organization or association of any kind that is not a Party to this Lease.
14.12 Counterparts; Electronically Transferred Signature . This Lease may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument. Each Party agrees that the other Party may rely upon the facsimile, electronic, or scanned and emailed signature of any Party on this Lease as constituting a duly executed and binding signature to this Lease.
14.13 Fees and Costs; Attorney’s Fees . Except as otherwise provided in this Lease, each Party shall be responsible for its own legal, broker, administrative, and other costs or fees incurred in connection with completion of this Lease and Watermaster's review and approval of the temporary transfer of the Leased Carryover as set forth in this Lease. However, in any arbitration, litigation, action or proceeding relating to the interpretation or enforcement of this Lease, the prevailing party shall be entitled to recover from the other party its reasonable expenses, attorneys' fees, and costs.
[END OF THIS PAGE – SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the Parties have executed this Lease as of the dates set forth below.
Helendale Community Services District
By: _______________________________
Dr. Kimberly Cox, General Manager
Date: ____________________________
Victorville Water District
By:
Keith C. Metzler, District General Manager
Date: _______________________________
ATTEST:
___________________________________
Jennifer Thompson, District Secretary
APPROVED AS TO FORM:
By:
Andre de Bortnowsky, District Counsel
VICTORVILLE WATER DISTRICT RISK
MANAGEMENT
By:
Lee Brown, Risk Manager
ATTACHMENT B
Map of Mojave Basin Area
Adjudicated Subareas
Oak
Hills
California Aqueduct
Summit
Valley
Yermo
Phelan
Atolia
Daggett
Hinkley
Pinon
Hills
Red Mountain
Lucerne
Valley
Kramer Junction
Newberry Springs
µ
ÄÄÄ
ÄÄÄ
ÄÄÄ
ÄÄÄ
Helendale
£¤
395
§¨¦15
Oro
Grande
Victorville
Apple
Valley
Adelanto
ÄÄÄ
Hesperia
Lenwood
Barstow
ÄÄÄ
§¨¦15
§¨¦40
ÄÄÄ
Yucca
Valley
Joshua
Tree
Pioneertown
Johnson
Valley
Landers
El Mirage
Mojave River
0 10 205
Miles
Centro Subarea
(1,228 square miles) Baja Subarea
(805 square miles)
Este Subarea
(443 square miles)
Alto Subarea
(766 square miles)
Oeste Subarea
(164 square miles)
Boundaries
Adjudicated Subarea
Mojave Water Agency
Mojave Basin Area
Adjudicated Subareas
Adjudicated Subareas include
approximately 3,406 square miles
ATTACHMENT C
Judgement After Trial
/0/0/1/2/3/2/4/3/2/5/6/7/i255/9/10/i255/11/2/12/i255/2/13/14/i255/9/10/i255/11/15/12/16/i255/2/17/18/13/14/18/14/i255/19/18/20/18/17/15/18/3/i255/21/16/i255/22/23/23/22/16/i255/2/3/18/i255/2/24/i255/24/6/18/i255/18/13/14/i255/25/26/i255/24/6/27/7/i255/14/25/20/28/17/18/13/24/29/0/0
Item Number: 14
City Council / Board of Directors
Written Communications
Meeting of: February 7, 2023
Submitted By:
Brian Gengler, City Engineer
John Mendiola, Finance Director / City Treasurer
Subject:
Consideration of Resolution Nos. 23-007 and VWD 23-001 approving Joint Community Facilities Agreements by and among Community Facilities District No. 4 of the Adelanto Elementary School District, the City of Victorville, the Victorville Water District, and D.R.
Horton Los Angeles Holding Company, Inc.
Recommendation:
That the Honorable City Council and the Honorable Board of Directors of the Victorville Water District adopt Resolution Nos. 23-007 and VWD 23-001, respectively, which:
(1) approve the Joint Community Facilities Agreements by and among Community Facilities District No. 4 (“CFD No. 4”) of the Adelanto Elementary School District (“School District”), the City of Victorville (“City”), the Victorville Water District (“Water District”), and D.R. Horton Los Angeles Holding Company, Inc. (“D.R.
Horton”), attached thereto as Attachment B and Attachment C, subject to such non- substantive changes as deemed appropriate by the City Manager in consultation with the City Attorney and the Water District General Manager in consultation with the Water District Counsel;
(2) authorize the Mayor and President of the Water District Board of Directors to execute the agreements; and
(3) further authorize the City Manager, the Water District General Manager, and other authorized City and Water District officers and officials to take such actions and execute such documents and certificates as may be necessary to effectuate the purposes of said Joint Community Facilities Agreements.
Fiscal Impact:
The recommended actions will not result in a direct fiscal impact to the City or the Water District. D.R. Horton’s requirement to pay development impact fees (“City Fees”) and water capacity charges (“Water District Fees”) remains unchanged. Bond proceeds received by the City and the Water District from School District CFD No. 4 pursuant to the 2 9
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Joint Community Facilities Agreements (the “City JCFA” and “Water District JCFA”) will result in credits being applied against payments of City Fees and Water District Fees made by D.R. Horton to fund the cost of eligible City and Water District Facilities.
Strategic Plan Goal:
This item aligns with Goal E., Strategy 1. in the Strategic Plan, “Invest in Infrastructure” and “Implement the City’s Capital Improvement Program to meet community needs.” Although this is not a Capital Improvement Project, we apply the same strategy to private development projects as they are essential in meeting the community’s needs.
Background:
In 2006, at the request of the then-current property owner (Mojave-Cobalt, LLC), the School District formed CFD No. 4 over property within Tract Nos. 16463 and 13816 in the City of Victorville, on which the then-current property owner planned to build 276 single family detached residential homes (the “Project”). CFD No. 4 was formed pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (as amended) to issue bonds, the proceeds of which would provide funding for various public facilities (including school and various non-school facilities, such as sewers, roads, and parks) that would be built to serve the new development.
In connection with CFD No. 4, on November 7, 2006, the governing board of the Victorville Sanitary District (“Sanitary District”) approved and executed a Joint Community Facilities Agreement (“JCFA”) with the School District and the then-current property owner to provide funding for various sewer improvements identified in the Sanitary District’s 1990 Sewer Master Plan. However, due to the onset of the “Great Recession”, the development of the Project did not occur as planned; public facilities to serve the development were not needed; CFD No. 4 did not issue bonds; and Tract Nos. 16463 and 13816 lay dormant and changed ownership multiple times. In addition, the San Bernardino Local Agency Formation Commission (“LAFCO”) subsequently ordered the Sanitary District to be dissolved, which dissolution became effective September 16, 2008.
Pursuant to a certificate of completion issued by LAFCO, the City became the successor to the rights, duties, responsibilities, and assets of the Sanitary District.
As certain public facilities to be constructed and owned by the City were also contemplated to serve the new development created by the Project, the Victorville City Council likewise approved and executed a JCFA with the School District, the then-current property owner, and the City on or about November 20, 2006.
Pursuant to the School District’s Community Facilities District No. 4 Report dated November 20, 2006, the maximum authorized bonded indebtedness to be issued by CFD No. 4 was originally projected to be an amount not to exceed $12,000,000, of which $3,691,225 was estimated to be for the non-school (City and Sanitary District) facilities.
Discussion:
D. R. Horton is now the owner of the above-referenced tracts. As part of moving forward with development of the Project, D.R. Horton contacted the City and the Water District in the Spring of 2021 to request that they each enter into JCFAs with the School District 2 9
4 6
and D.R. Horton (similar to the now defunct JCFAs described in the Background section of this Staff Report). As CFD No. 4 was still in existence, the requested new JCFAs would provide a means to finance the costs of the City Fees and Water District Fees D.R.
Horton was required to pay in connection with the public facilities that were now needed to serve the new development. However, as the bonds now needed to fund both Water District and City Facilities, as well as cover the increased fees/costs associated with both school and non-school facilities, certain changes to the structure of CFD No. 4 needed to be undertaken by the School District before such JCFAs could be entered.
In January of 2022, the School District Board conducted change proceedings for CFD No. 4, which revised the rate and method of apportionment of Special Taxes for CFD No. 4, the facilities to be funded by CFD No. 4, and the authorized amount of bonded indebtedness (increased to $20,000,000). The change proceedings also permitted the issuance of a federally taxable bond component to fund certain City facilities (storm drain, facilities, and police) fees and Water District facilities (alternate water source) fees which the parties had determined might not be placed into service within applicable IRS time frames required for the use of tax-exempt bonds proceeds. A spreadsheet listing the City and Water District Facilities eligible to be financed by bonds issued by CFD No. 4 (both tax-exempt and taxable) is Attachment F to this Staff Report.
Although the City Council and Water District Board (in conjunction with adoption of new and updated Development Impact and Capacity Fees in June of 2022) now favor using the Statewide Community Infrastructure Program (SCIP) and Bond Opportunities for Land Development (BOLD) to provide financing mechanisms to assist developers with payment of fees like those at issue here, the proposed JCFAs are being used because a majority of the lots in the Project have already been sold. The SCIP and BOLD programs must be utilized when the land to be developed is still 100 percent developer owned.
Therefore, City and Water District staff, in conjunction with the School District, D.R.
Horton, the City Attorney’s office and outside bond counsel have now prepared the City JCFA and Water District JCFA for consideration and approval by the City Council and Water District Board of Directors.
Adoption of Resolution No. 23-007 (approving the City JCFA attached thereto as Attachment B) and adoption of Resolution No. VWD 23-001 (approving the Water District JCFA attached thereto as Attachment C) and further authorizing execution said JCFAs (subject to such non-substantive changes as deemed appropriate by the City Manager/Water District General Manager in consultation with the City Attorney/Water District Counsel) by the Mayor/District Board President is recommended.
Once the JCFAs are approved and until CFD No. 4 issues bonds, D.R. Horton will continue as it has in the past to make payments of City Fees/Water District Fees as they become due. Such payments are considered “Advances” of said fees under the terms of each JCFA. After sufficient development occurs and bonds are issued, the School District will notify the City/Water District of the amount of bond proceeds available for City Facilities/Water District Facilities. Following issuance, the City/Water District will first provide D.R. Horton with a reimbursement of the Advances up to the amount of bond proceeds received. To the extent that proceeds of CFD No. 4 bonds available to the 2 9
4 6
City/Water District are in excess of the Advances, such bond proceeds can be withdrawn by the City/Water District and expended on City Facilities/Water District Facilities. In that event, when D.R. Horton requests a building permit, the City/Water District would provide a credit against City Fees/Water District Fees otherwise payable to them on a dollar-for- dollar basis. Exhibit D of each JCFA contains the form the City/Water District must complete and provide to the Fiscal Agent for CFD No. 4 in order to receive disbursements of bond proceeds.
Staff remains available for any questions the City Council/District Board may have.
Attachments: A. Vicinity Map
B. Resolution No. 23-007
C. Resolution No. VWD 23-001
D. City Joint Community Facilities Agreement
E. Water District Joint Community Facilities Agreement
F. List of Facilities Eligible to be Financed by CFD No. 4 Attachment A
Vicinity Map
1 3
1 0
9 Attachment B
Resolution No. 23-007
1 3
1 0
9 RESOLUTION NO. 23-007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VICTORVILLE APPROVING A JOINT COMMUNITY
FACILITIES AGREEMENT BY AND AMONG
COMMUNITY FACILITIES DISTRICT NO. 4 OF THE
ADELANTO ELEMENTARY SCHOOL DISTRICT, THE
CITY OF VICTORVILLE, AND D.R. HORTON LOS
ANGELES HOLDING COMPANY, INC.
WHEREAS, in 2006 at the request of the then-current property owner (Mojave- Cobalt, LLC), the Adelanto Elementary School District (the “School District”) formed Adelanto Elementary School District Community Facilities District No. 4 (“CFD No. 4”) over property within Tract Nos. 16463 and 13816, on which the then-current property owner planned to build 276 single family detached residential homes (the “Project”); however residential development did not occur as planned and the property lay dormant and changed ownership multiple times; and
WHEREAS, on November 7, 2006, in connection with CFD No. 4, the City Council of the City of Victorville (the “City”) approved a Joint Community Facilities Agreement (“JCFA”) with the School District, the then-current property owner, and the City, to fund the costs of certain public facilities to be built and owned by the City to serve the Project, which agreement was subsequently executed on November 20, 2006; and WHEREAS, also on November 7, 2006, and in connection with CFD No. 4, the Victorville Sanitary District (“Sanitary District”) entered into a Joint Community Facilities Agreement, dated as of November 20, 2006, with the School District and the then-current property owner to fund the costs of certain public facilities to be built and owned by the Sanitary District to serve the Project; and
WHEREAS, pursuant to San Bernardino Local Agency Formation Commission (“LAFCO”) Resolution No. 3021, adopted on September 11, 2008, the Sanitary District was ordered dissolved, and the City was designated the successor to the Sanitary District effective upon the issuance by LAFCO of a certificate of completion; and WHEREAS, on September 16, 2008, LAFCO issued said certificate of completion and effective as of that date, the City succeeded to all rights, duties, responsibilities, properties (both real and personal), contracts, equipment, assets, liabilities, obligations, functions, executory provisions, entitlements, permits and approvals of the Sanitary District; and WHEREAS, D.R. Horton Los Angeles Holding Company, Inc. (“D.R. Horton”) is now the owner of the property and is moving forward with development of the Project; and WHEREAS, in the Spring of 2021, D.R. Horton contacted the City to request that it enter into a new JCFA with the School District and D.R. Horton (similar to the now-defunct JCFAs described in the previous recitals) which following certain CFD No. 4 change proceedings to be undertaken by the School District, would provide a means to finance the costs of certain development impact fees D.R. Horton was required to pay to the City (“City Fees”) in connection with the public facilities that are now needed to serve the new development; and
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9 WHEREAS, in January of 2022, the School District Board conducted change proceedings with respect to CFD No. 4, which revised the rate and method of apportionment of Special Taxes for CFD No. 4, the facilities to be funded by CFD No. 4, and the authorized amount of bonded indebtedness; and
WHEREAS, in accordance with the revised CFD No. 4 bond financing. D.R. Horton, the School District, and the City have prepared a new JCFA by and amongst the three parties which is now being presented for City Council approval and execution (the “City JCFA”) which JCFA will finance certain City Fees; and
WHEREAS, the City Council has reviewed and considered the report of City Staff and the City JCFA, substantially in the form attached to this Resolution as Exhibit A and incorporated herein by this reference; and
WHEREAS, the City Council has determined that it is necessary and desirable to enter into the City JCFA to authorize CFD No. 4 to fund the payment of City Fees associated with the construction of the City Facilities, as such are defined in the City JCFA.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE
DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS:
Section 1.That the recitals set forth above are true and correct and are incorporated into this Resolution by this reference, together with any definitions and findings set forth therein.
Section 2.That the City Council hereby approves the City JCFA, a copy of which is attached to this Resolution as Exhibit A, subject to such non-substantive changes as deemed appropriate by the City Manager in consultation with the City Attorney.
Section 3.That the Mayor is hereby authorized and directed to execute and deliver the City JCFA as so finally approved, and the City Clerk is authorized to attest thereto, such approval to be conclusively evidenced by such officer’s execution and delivery of such agreement.
Section 4.That all actions heretofore taken by any officer or officers of the City, with respect to the City JCFA, are hereby approved, confirmed, and ratified.
Section 5.That the Mayor, the City Manager and his/her duly authorized designees, the City Attorney, the City Clerk, are hereby authorized and directed, for and in the name and on behalf of the City to take such actions, and to execute such documents and certificates as may be necessary to effectuate the purposes of the City JCFA.
Section 6.That this Resolution shall take effect immediately upon its adoption.
Section 7.That the City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original resolutions; and shall make a minute of passage and adoption thereof in the records of the proceedings, in the minutes of the meeting at which this Resolution is passed and adopted.
P:\APPS\WPDATA\VVCA\0001-48 CFD'S JCFAS\800.4-ATTACHMENT B - RESOLUTION NO. 23-007 TLT REV 12.13.22 CLN.DOCX 1 3
1 1
0 Attachment C
Resolution No. VWD 23-001
1 3
1 1
0 VICTORVILLE WATER DISTRICT
RESOLUTION NO. VWD 23-001
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE VICTORVILLE WATER DISTRICT APPROVING A
JOINT COMMUNITY FACILITIES AGREEMENT BY
AND AMONG COMMUNITY FACILITIES DISTRICT
NO. 4 OF THE ADELANTO ELEMENTARY SCHOOL
DISTRICT, THE VICTORVILLE WATER DISTRICT,
AND D.R. HORTON LOS ANGELES HOLDING
COMPANY, INC.
WHEREAS, in 2006 at the request of the then-current property owner (Mojave- Cobalt, LLC), the Adelanto Elementary School District (“School District”) formed Adelanto Elementary School District Community Facilities District No. 4 (“CFD No. 4”) over property within Tract Nos. 16463 and 13816 on which the then-current property owner planned to build 276 single family detached residential homes (the “Project”); however residential development did not occur as planned and the property lay dormant and changed ownership multiple times; and
WHEREAS, on November 7, 2006, in connection with CFD No. 4, the City Council of the City of Victorville (the “City”) approved a Joint Community Facilities Agreement (“JCFA”) with the School District, the then-current property owner, and the City, to fund the costs of certain public facilities to be built and owned by the City to serve the Project, which agreement was subsequently executed on November 20, 2006; and WHEREAS, D.R. Horton Los Angeles Holding Company, Inc. (“D.R. Horton”) is now the owner of the property and is moving forward with development of the Project; and WHEREAS, in the Spring of 2021, D.R. Horton contacted the Victorville Water District (the “Water District”) to request that it enter into a JCFA with the School District and D.R. Horton (similar to the now-defunct JCFA described in the previous recital) which following certain CFD No. 4 change proceedings to be undertaken by the School District, would provide a means to finance the costs of certain capacity charges D.R. Horton was required to pay to the Water District (“Water District Fees”) in connection with the public facilities that are now needed to serve the new development; and WHEREAS, in January of 2022, the School District Board conducted change proceedings with respect to CFD No. 4, which revised the rate and method of apportionment of Special Taxes for CFD No. 4, the facilities to be funded by CFD No. 4, and the authorized amount of bonded indebtedness; and
WHEREAS, in accordance with the revised CFD No. 4 bond financing. D.R. Horton, the School District, and the Water District have prepared a new JCFA by and amongst the three parties which is now being presented for Water District Board approval and execution (the “Water District JCFA”) which JCFA will finance certain Water District Fees; and WHEREAS, the Board of Directors of Water District (the “District Board”) has reviewed and considered the report of City Staff and the Water District JCFA, substantially in the form attached to this Resolution as Exhibit A and is incorporated herein by this reference; and
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0 WHEREAS, the District Board has determined that it is necessary and desirable to enter into the Water District JCFA to authorize CFD No. 4 to fund the payment of Water District Fees associated with the construction of the Water District Facilities, as such are defined in the Water District JCFA.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE VICTORVILLE WATER DISTRICT (“DISTRICT BOARD”) DOES HEREBY RESOLVE AS FOLLOWS:
Section 1.That the recitals set forth above are true and correct and are incorporated into this Resolution by this reference together with any definitions and findings set forth therein.
Section 2.That the District Board hereby approves the Water District JCFA, a copy of which is attached to this Resolution as Exhibit A, subject to such non-substantive changes as deemed appropriate by the Water District General Manager in consultation with the Water District Counsel.
Section 3.That the President of the District Board is hereby authorized and directed to execute and deliver the Water District JCFA as so finally approved, and the Secretary is authorized to attest thereto, such approval to be conclusively evidenced by such officer’s execution and delivery of such agreement.
Section 4.That all actions heretofore taken by any officer or officers of the Water District, with respect to the Water District JCFA are hereby approved, confirmed, and ratified.
Section 5.That the President of the District Board; the Water District General Manager and his/her duly authorized designees; the Water District Counsel; and the Secretary, are hereby authorized and directed, for and in the name and on behalf of the Water District to take such actions, and to execute such documents and certificates, as may be necessary to effectuate the purposes of the Water District JCFA.
Section 6.That this Resolution shall take effect immediately upon its adoption.
Section 7.That the Secretary shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original resolutions; and shall make a minute of passage and adoption thereof in the records of the proceedings, in the minutes of the meeting at which this Resolution is passed and adopted.
P:\APPS\WPDATA\VVCA\0001-48 CFD'S JCFAS\801.5-ATTACHMENT C - RESOLUTION NO. VWD23-001 REV TLT 12.13.22 CLN.DOCX Attachment D
City Joint Community Facilities Agreement
(Exhibit A to Resolution No. 23-007)
JOINT COMMUNITY FACILITIES AGREEMENT
by and among
COMMUNITY FACILITIES DISTRICT NO. 4 OF THE
ADELANTO ELEMENTARY SCHOOL DISTRICT
and
CITY OF VICTORVILLE
and
D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.
Relating to Financing of Public Facilities Costs by
Community Facilities District No. 4 of the Adelanto Elementary School District Dated as of _______________, 2022
JOINT COMMUNITY FACILITIES AGREEMENT
THIS JOINT COMMUNITY FACILITIES AGREEMENT (“JCFA”), dated as of _________________, 2022 (“Effective Date”), is entered into by and among COMMUNITY FACILITIES DISTRICT NO. 4 OF THE ADELANTO ELEMENTARY SCHOOL DISTRICT, a Mello-Roos community facilities district organized and existing under the laws of the State of California (“CFD No. 4”); the CITY OF VICTORVILLE, a California charter city and municipal corporation organized and exist ing under the laws of the State of California (“City”); and D.R. HORTON LOS ANGELES HOLDING COMPANY, INC. , a California corporation (“Owner”). The foregoing named parties may be referred to herein as either party or parties (“Party” or “Parties”).
W I T N E S S E T H:
WHEREAS, Owner is the current owner of that certain real property located within the boundaries of the City (“Property”), which is also located within the boundaries of the Adelanto Elementary School District (“School District”) and CFD No. 4, and is described in Exhibit “A” attached hereto and incorporated herein by this reference; WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (“Act”), the Board of Trustees of the School District (“Board”) in 2006 completed proceedings to establish CFD No. 4, the boundaries of which include the Property; WHEREAS, the Board, acting as the Legislative Body of CFD No. 4, conducted change proceedings on January 25, 2022, at which the Board considered revisions to the Rate and Method of Apportionment of Special Taxes for CFD No. 4 (“Rate and Method”) , the facilities to be funded by CFD No. 4, and the authorized amount of bonded indebtedness; WHEREAS, on January 25, 2022, a special election was conducted in wh ich the qualified electo rs of CFD N o. 4 approve d by, more th an a two-thirds (2/3) vote, proposit ions changing the Rate and Me thod, cha nging the descr iptions of the facilities CFD No. 4 is authorized to finance and authorizing bon ded indebtedness for CFD N o. 4 in an amoun t not to exceed $20,000,000;
WHEREAS, the facilities eligible to be financed by CFD No. 4 include certain school facilities to be owned and operated by the School District (“School District Facilities”), as described in Exhibit “B,” and certain public facilities to be owned and operated by the City (“City Facilities”), as described in Exhibit “C,” all in order to accommodate developm ent within the School District, CFD No. 4 and the City, including the Property; WHEREAS, Section 53316.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that c reated the community facilities district only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to said Section;
2 WHEREAS, Section 53316.2 of the Act further provides that at any time prior to the adoption of the resolution of formation creating a community facilities district or a resolution of change to alter a community facilities district, or a resolution or resolutions authorizing issuance of bonds pursuant to Section 53356 of the Act, the legisl ative bodies of two or more local public agencies may enter into a joint community facilities agreement pursuant to said Section and Sections 53316.4 and 53316.6 of the Act to exercise any power authorized by the Act with respect to the community facilitie s district being created if the legislative body of each entity adopts a resolution declaring that such a joint agreement would be beneficial to the residents of that entity;
WHEREAS, the Board of Trustees of the School District and the City Council of the City (“City Council”) have each adopted such a resolution; WHEREAS, subsection (e) of Section 53316.2 of the Act provides that, notwithstanding any other provision of the Act, no local agency which is party to a joint exercise of powers agreement or joint community facilities agreement shall have primary responsibility for formation of a community facilities district unless that agency is one or more of certain specified types of agencies, including an agency that is reasonably expected to have responsibil ity for providing facilities or services to be financed by a larger share of the proceeds of special taxes (“Special Taxes”) and bonds (including equivalent securities secured by a pledge of the Special Taxes) (“Bonds”) of the community facilities district or districts created pursuant to the joint exercise of powers agreement or the joint community facilities agreement than any other local agency;
WHEREAS, the School District has determined that the School District Facilities will be financed by a larger share of the proceeds of the Special Taxes and the Bonds of CFD No. 4 than the City Facilities;
WHEREAS, the City levies and collects certain fees /capacity charges on new development within the City, including the development of the Property, to finance the construction of facilities (“City Fees”), as further described in Exhibit “C” (the City Facilities); WHEREAS, Owner has requested that CFD No. 4 finance City Facilities in lieu of the payment of City Fees that would otherwise be payable with respect to d evelopment of the Property;
WHEREAS, the City has agreed to provide Owner with a credit against payment of City Fees to the extent that proceeds of the Bonds are made available to the City to fund the costs of the City Facilities, as described herein; and
WHEREAS, CFD No. 4, the City and Owner desire to enter into this JCFA in accordance with Sections 53316.2, 53316.4 and 53316.6 of the Act in order to provide for the financing of the City Facilities costs through proceeds generated by the issuance of Bond s by CFD No. 4.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES AND COVENANTS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS:
3 Section 1. Recitals. Each of the above recitals is true and correct and is incorporated herein.
Section 2. Effective Date . This JCFA shall become effective and binding upon the Parties hereto upon the Effective Date.
Section 3. CFD No. 4 . The School District has formed CFD No. 4 and is solely responsible for conducting proceedings for CFD No. 4 and authorization of the levy of the Special Taxes and the issuance of the Bonds and, if required by the School District as provided in any mitigation agreement or other agreement between the School District and Owner, an action under Sections 860 et seq. of the California Code of Civil Procedure relati ng thereto if the Board determines in its sole discretion that such action is appropriate.
Section 4. Issuance of B onds. It is anticipated that the Board, acting as the Legislative Body of CFD No. 4, and in accordance with sound municipal financing practices will issue the Bonds to finance the acquisition, construction and installation of the School District Facilities and the City Facilities in lieu of the payment of City Fees that would otherwise be payable with respect to development of the Property . The Board, ac ting as the Legislative Body of CFD No. 4, shall, in its sole discretion, determine whether, when, under what conditions and to what extent the Bonds shall be issued to finance the acquisition, construction and installation of the School District Facilitie s and the City Facilities. The Bonds shall be issued only if all requirements of State and federal law, as applicable, and all School District policies applicable to CFD No. 4 and the Bonds have been satisfied or waived by the School District/CFD No. 4. In no event shall the City or the Owner have any right to compel CFD No. 4 to issue Bonds.
The School District/CFD No. 4 agrees not to include references to the City in the information provided to the County of San Bernardino that is to be included in the property tax bills for taxpayers within CFD No. 4.
Section 5. City Facilities.
a. The City Facilities eligible to be funded by CFD No. 4 are described in Exhibit “C” attached hereto.
b. It is anticipated that CFD No. 4 will provide Bond proceeds to finance all or a portion of the acquisition, construction, and installation costs of the City Facilities in lieu of the payment of City Fees payable with respect to the development of the Property. If CFD No. 4 issues the Bonds, a portion of the proceeds of which are to be avail able to finance the acquisition, construction and installation of the City Facilities, the School District shall, or shall cause CFD No. 4 to, notify the City of the amount of such proceeds available for such purpose within 15 days of such proceeds becoming so available. The School District/CFD No. 4 make no representation that, if proceeds of Bonds are made available to finance the acquisition, construction and installation of the City Facilities, such proceeds will be sufficient to finance the acquisition, construction, and installation costs of all of the City Facilities, and neither the School District nor CFD No. 4 shall have any liability to the City or any Party if such proceeds are insufficient for such purpose. If CFD No. 4 does not issue Bonds to finance the acquisition, construction, and installation of the City Facilities, neither the School District nor CFD No. 4
4 shall have any obligation to provide any amounts to finance or pay the costs of the acquisition, construction, and installation of the City Facilities.
c. The City shall apply proceeds of the Bonds to the payment of costs of construction of any portion of the City Facilities only if such portion of the City Facilities is constructed under the direction and supervision, or under the authority of, the City.
Section 6. Disbursements.
a. Bond proceeds available for the acquisition, construction and installation of the City Facilities shall be deposited in a special fund or account (howsoever the same may be denominated, the “City Facilities Account”) to be e stablished under the fiscal agent agreement, indenture, or other instrument pursuant to which the Bonds are issued (howsoever the same may be denominated). Moneys on deposit in the City Facilities Account shall be invested and disbursed at the direction of CFD No. 4.
b. In conjunction with the recording of the final subdivision map(s) for the Property, the issuance of building permits for the construction of homes within the Property and/or receipt of building permits for such homes, the Owner, or its successors or assigns, may elect to advance City Fees (“Advances”) before any Bond proceeds have been deposited in the City Facilities Account or are otherwise available to pay for City Facilities. In such case, following the issuance of Bonds, the Owner shall be entitled to reimbursement of such Advances by the City to the extent an equal or greater amount has been deposited in the City Facilities Account and disbursed to the City as set out herein.
c. From time to time following the deposit of proceeds of the Bond s (“Bond Proceeds”) into the City Facilities Account, the City may notify the School District (on behalf of CFD No. 4) in writing and request a disbursement from the City Facilities Account to fund City Facilities by executing and submitting an executed Payment Request Form to CFD No. 4 and to the Bonds fiscal agent, as the Bond issuance documents shall provide. Upon receipt of such Payment Request Form, in substantially the form attached hereto as Exhibit “D,” completed in accordance with the terms of thi s Agreement, CFD No. 4, or the Bonds fiscal agent, shall wire transfer, or otherwise pay, to the City such requested funds to the extent that Bond Proceeds are available in the City Facilities Account for such purpose. d. CFD No. 4 shall process in a timely m anner written requests for disbursements/payments received from the City that conform to the requirements hereof. The City shall provide the Owner with a credit against City Fees otherwise payable with respect to the development of the Property on a dollar for dollar basis with respect to any disbursement from the City Facilities Account received by the City in excess of the amount equal to prior Advances that have been reimbursed.
e. The City agrees that prior to executing and submitting a Payment Request Form to CFD No. 4, it shall review and approve all costs included in such request and will have already paid or incurred such costs of the City Facilities from its own funds subsequent to the date of this JCFA, or will disburse such amounts to pay the cost s of the City Facilities following receipt of funds from CFD No. 4 for the Property. In the event that the City does not disburse
5 any Bond proceeds received by it to third parties within five (5) banking days of receipt, it will trace and report to CFD No . 4 all earnings, if any, earned by the City, from the date of receipt of such Bond proceeds to the date of expenditure for costs of the City Facilities. If required by the preceding sentence, such report shall be delivered at least semiannually until all Bond proceeds received are expended by the City.
f. The City agrees to maintain adequate internal controls over its payment function and to maintain accounting records in accordance with generally accepted accounting procedures as to receipt and expenditure of Bond proceeds for City Facilities. The City will, upon request, provide the School District and/or the Owner with access to the City’s records related to the City Facilities and will provide to the School District its annual financial report certified by an independent certified public accountant for purposes of assisting the School District in calculating the arbitrage rebate obligation of CFD No. 4 for the Bonds, if any. g. The School District or CFD No. 4 agrees to maintain full and accurate records of all amounts, and investment earnings, if any, expended from the City Facilities Account. The School District or CFD No. 4 will, upon request, provide the City and/or the Owner with access to the School District’s or CFD No. 4’s records related to the City Facilities Account. h. Notwithstanding the foregoing, CFD No. 4 and City acknowledge that CFD No. 4 has the ultimate responsibility for issuance of the Bonds, the administration of CFD No. 4 and the federally tax -exempt status of any Bonds issued by CFD No. 4. Accordingly the Board, acting as the Legislative Body of CFD No. 4, shall have ultimate responsibility for making all decisions with respect to the issuance of any Bonds and the levy of any Special Taxes. i. In connection with the issuance of any Bonds i ssued by CFD No. 4 as federally tax-exempt securities, the City agrees to execute and deliver a Certificate Concerning Use of Bond Proceeds (“City Certificate”), the form of which is attached hereto as Exhibit “E,” in order for bond counsel to conclude tha t interest on such Bonds will be excluded from gross income under Section 103 of the Internal Revenue Code of 1986, as amended, and any other provision of law. If applicable, each such City Certificate shall be provided by bond counsel prior to the pricing of the Bonds, and shall be executed by a duly authorized officer of the City within fifteen (15) calendar days of receipt of each such City Certificate. Should City fail to execute and deliver the applicable City Certificate within fifteen (15) calendar days, the School District may choose not to include the City Facilities in the issuance of Bonds, or issue federally taxable Bonds to fund the City Facilities and federally tax -exempt Bonds to fund the School Facilities.
The decision regarding whether to issue Bonds for City Facilities, and, if so, whether they should be issued as federally taxable or tax -exempt securities, shall be the decision of the Board, acting as the Legislative Body of CFD No. 4, in its sole discretion.
Section 7. Construction, Ownership and Maintenance of School District Facilities. The City shall have no responsibility for the acquisition, construction, and installation of the School District Facilities. The School District Facilities shall be and remain the sole and separate property of th e School District and shall be operated, maintained, and utilized by the School District. The City shall not have any ownership interest in, or responsibility for the operation, maintenance, or utilization of, the School District Facilities.
6 Section 8. Construction, Ownership and Maintenance of City Facilities . The School District shall have no responsibility for the acquisition, construction, and installation of the City Facilities. The City Facilities shall be and remain the sole and separate property of the City and shall be operated, maintained, and utilized by the City. The School District shall not have any ownership interest in the City Facilities, and the School District shall have no responsibility for the operation, maintenance, or utilization of the City Facilities.
Section 9. Indemnification.
a. The City agrees to indemnify, defend and hold harmless the School District and CFD No. 4, and their respective officers, employees and agents, and each and every one of them, from and against any and all claims, losses, expense s, suits actions, decrees, judgments, awards, attorneys’ fees and court costs which the School District or CFD No. 4, or their respective officers, employees and agents, or any combination thereof, may suffer or which may be sought against or recovered or obtained from the School District or CFD No. 4, or their respective officers, employees or agents, or any combination thereof, as a result of or by reason of or arising out of or in consequence of the acquisition, construction, installation, operation, mai ntenance or utilization of the City Facilities, including the use of Bond proceeds. If the City fails to do so, the School District and CFD No. 4 shall have the right, but not the obligation, to defend the same and charge all of the direct and incidental costs of such defense, including any attorneys’ fees or court costs, to and recover the same from the City.
No indemnification is required to be paid by the City for any claim, loss or expense arising from the willful misconduct or negligence of the School District or CFD No. 4, or their respective officers, employees, or agents.
b. The School District agrees to indemnify, defend and hold harmless the City, and its officers, employees and agents, and each and every one of them, from and against any and all claims, losses, expenses, suits, actions, decrees, judgments, awards, attorneys’ fees and court costs which the City, or its officers, employees and agents, or any combination thereof, may suffer or which may be sought against or recovered or obtained from th e City, or its respective officers, employees or agents, or any combination thereof, as a result of or by reason of or arising out of or in consequence of the acquisition, construction, installation, operation, maintenance or utilization of the School Facilities or the issuance of the Bonds. If the School District fails to do so, the City shall have the right, but not the obligation, to defend the same and charge all of the direct and incidental costs of such defense, including any attorneys’ fees or court costs, to and recover the same from the School District.
No indemnification is required to be paid by the School District for any claim, loss or expense arising from the willful misconduct or negligence of the City, or its officers, employees, or agents.
c. Owner agrees to indemnify, defend and hold harmless the School District, CFD No. 4 and the City, and their respective officers, employees and agents, and each and every one of them, from and against any and all claims, losses, expenses, suits actions, decr ees, judgments, awards, reasonable attorneys’ fees and court costs which the School District, CFD No. 4 or the City, or their respective officers, employees and agents, or any combination thereof, may suffer
7 or which may be sought against or recovered or o btained from the School District, CFD No. 4 or the City, or their respective officers, employees or agents, or any combination thereof, as a result of or by reason of or arising out of or in consequence of any act or omission of Owner with respect to this JCFA. If Owner fails to do so, the School District, CFD No. 4 and the City shall have the right, but not the obligation, to defend the same and charge all of the direct and incidental costs of such defense, including any reasonable attorneys’ fees or cour t costs, to and recover the same from Owner.
No indemnification is required to be paid by Owner for any claim, loss or expense arising from the willful misconduct or negligence of School District (if indemnification is sought by the School District), CFD No. 4 (if indemnification is sought by CFD No. 4) or the City (if indemnification is sought by the City), or their respective officers, employees, or agents (if indemnification is sought thereby).
Section 10. Nature of Agreement; Allocation of Special Taxes . This JCFA shall constitute a joint community facilities agreement entered into pursuant to Sections 53316.2, 53316.4 and 53316.6 of the Act. The Board, acting as the Legislative Body of CFD No. 4, shall annually levy the Special Taxes as provided for in the procee dings for the formation and amendment of CFD No. 4, including, without limitation, the First Amended Rate and Method of Apportionment of Special Taxes for CFD No. 4. The entire amount of any Special Tax levied by CFD No. 4 not needed for payment of interest or principal on Bonds or the costs of administering CFD No. 4 shall inure to the benefit of CFD No. 4 to be used as determined by the School District consistent with applicable law and associated agreements. The entire amount of the proceeds of the Special Taxes shall be allocated and distributed by the School District.
Section 11. Prevailing Wage. The City is a public agency in the State of California and is subject to provisions of law relating to public contracts. It is agreed that all applicable provisions of law relating to public contracts are a part of this JCFA to the same extent as though set forth herein and will be complied with by the City (and by Owner, to the extent Owner is constructing any City Facilities), including but not limited to, the payment of prevailing wages and other requirements of California Labor Code Section 1720 et seq.
Section 12. Debt Management Policy Compliance . The School District and the City are both public agencies required to maintain a debt management policy in compliance with Senate Bill No. 1029 (2016). Both the School District and the City shall certify compliance with applicable law and all legal requirements required as may relate to this JCFA, the issuance of the Bonds or the allocation and use of Bond proceeds.
Section 13. Limitation of Rig hts to Parties . Nothing in this JCFA expressed or implied is intended or shall be construed to give to any person other than the School District, the City, the Owner, and CFD No. 4 any legal or equitable right, remedy or claim under or in respect of this J CFA or any covenant, condition or provision herein contained; and all such covenants, conditions and provisions are and shall be held to be for the sole and exclusive benefit of the School District, the City, the Owner and CFD No. 4.
8 Section 14. Notices. All written n otices to be given hereunder shall be given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:
If to the School District: Adelanto Elementary School District 11824 Air Expressway
Adelanto, CA 92301
Attention: Assistant Superintendent of Business Services Email: [email protected]
If to CFD No. 4: Community Facilities District No. 4 of the Adelanto Elementary School District
c/o Adelanto Elementary School District
11824 Air Expressway
Adelanto, CA 92301
Attention: Assistant Superintendent of Business Services Email: [email protected]
With a copy to: Atkinson, Andelson, Loya, Ruud & Romo 20 Pacifica, Suite 1100
Irvine, California 92618
Attn: Robert E. Anslow
Fax: (949) 453-4260
Email: [email protected]
If to the City: 14343 Civic Drive
Victorville, CA 92392
Attention: Keith C. Metzler, City Manager
Email: [email protected]
With a copy to Green de Bortnowsky, LLP
30077 Agoura Court, Suite 210
Agoura Hills, CA 93101
Attn: Andre de Bortnowsky, City Attorney
[email protected]
If to Owner: D.R. Horton Los Angeles Holding Company, Inc. 2280 Wardlow Circle, Suite 100
Corona, CA 92878
Attn: Vicki Gullion, Assistant Secretary
Email: [email protected]
Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if given by courier or delivery service or if personally served or delivered, upon
9 delivery, (b) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, or (c) if given by any other means, upon delivery at the address specified in this Section.
If notice is given by electronic communication, whether by email or telecopier, notice shall be deemed delivered upon obtaining the then -current addressee’s email address or telecopier, and upon the sender’s receipt of an appropriate answer back or other written acknowledgement from the addressee of successful transmission.
Section 15. California Law . This JCFA shall be governed and construed in accordance with the laws of the State of California.
Section 16. Severability. If any part of this JCFA is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this JCFA shall be given effect to the fullest extent reasonably possible.
Section 17. Successors. This JCFA shall be binding upon and in ure to the benefit of the successors of the Parties hereto.
Section 18. Amendment and Assignment . This JCFA may be amended at any time but only in writing signed by each Party hereto. This JCFA may be assigned, in whole or in part, by the Owner to the purchaser of an y parcel of land within the Property provided, however, such assignment shall not be effective unless and until the School District and the City have been notified, in writing, of such assignment.
Section 19. Entire Agreement. This JCFA contains the entire agreement b etween the Parties with respect to the matters provided for in this JCFA and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this JCFA.
Section 20. Counterparts. This JCFA may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument.
Section 21. Construction. The parties hereto acknowledge and agree that each has been given the opportunity to review this JCFA with legal counsel independently, a nd/or has the requisite experience and sophistication to understand, interpret, and agree to the particular language of the provisions hereof. In the event of an ambiguity in or dispute regarding the interpretation of same, the interpretation of this JCFA shall not be resolved by any rule of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the drafter.
Section 22. Attorneys' Fees. ln the event of the bringing of any action or suit by any Party against any oth er Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the losing Party all costs and expenses of suit, including reasonable attorneys' fees.
10 Section 23. City Costs and Expenses . The Owner agrees to pay the City its costs and expenses relating to the review and preparation of this JCFA and any fee credit agreement entered into with the City, including the City’s legal cost relating thereto.
Section 24. Termination. This JCFA shall terminate o n the date which is ten (10) years after the Effective Date, if by such date no Bond Proceeds have been deposited to the City Facilities Account. In the event that Bond Proceeds have been so deposited to the City Facilities Account within ten (10) years of the Effective Date, this JCFA shall terminate on the date which is 5 years after the date on which no funds remain on deposit in the City Facilities Account.
IN WITNESS WHEREOF, the parties hereto have executed this JCFA as of the date first written above.
(Signatures on following page)
37591972.3
- JCFA Signature Page -
APPROVED AS TO FORM:
ATKINSON, ANDELSON, LOYA,
RUUD & ROMO
Attorneys for Adelanto Elementary
School District
By: ___________________________
D.R. HORTON LOS ANGELES
HOLDING COMPANY, INC.
By:
Title:
COMMUNITY FACILITIES DISTRICT
NO. 4 OF THE ADELANTO
ELEMENTARY SCHOOL DISTRICT
By: ______________________________
President of the Board of Trustees of
the Adelanto Elementary School
District, Acting as the Legislative
Body of CFD No. 4
ATTEST:
By:
Clerk of the Board of Trustees of the
Adelanto Elementary School District,
Acting as the Legislative Body of CFD
No. 4
CITY OF VICTORVILLE
By:
Debra Jones, Mayor
ATTEST:
By:
Jennifer Thompson, City Clerk
APPROVED AS TO FORM
____________________________________
Andre de Bortnowsky, City Attorney
A-1
EXHIBIT A
DESCRIPTION OF THE PROPERTY
Owner: D.R. Horton Los Angeles Holding Company, Inc., a California corporation
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
B-1
EXHIBIT B
SCHOOL DISTRICT FACILITIES DESCRIPTION
C-1
EXHIBIT C
CITY FACILITIES DESCRIPTION
Facilities of the City of Victorville (City):
“Facilities” includes fire/fire protection, police, public park, roads and roadways and storm drain/flood control -prevention facilities, including, without limitation, facilities typically financed through fees, including, without limitation, fire/fire pro tection, police, public park, roads and roadways and storm drain/flood control -prevention of the City of Victorville (“City”), and all appurtenances and appurtenant work in connection with the foregoing, including the cost(s) of engineering, planning, desi gning, materials testing, coordination, construction staking, construction management and supervision for such City Facilities and any other expense incidental to the construction, acquisition, modification, expansion or rehabilitation of such City Facilities. The City Facilities listed herein are representative of the types of improvements authorized to be financed by CFD No. 4. Detailed scope and limits of specific projects will be determined as appropriate, consistent with the standards of the City. Ad dition, deletion , or modification of descriptions of the City Facilities may be made consistent with the requirements of the governing board of the City, CFD No. 4 and the Act (e.g., as of the date of the JCFA sewer facilities are provided by the City).
The City Facilities listed herein and those public improvement projects, public buildings, and public facilities described and/or listed in the City’s: (1) “Development Impact Fee Study” and “Sewer Capacity Fee Study” prepared by N.B.S. Government Finance Group; (2) “Development Impact Fee Justification Study Regional Drainage Facilities” prepared by DTA; (3) Capital Improvement Plan; (4) Development Impact Fees/Capacity Charges Master Fee Schedule ; and (5) Council Policy No. CP-22-01, all as approved by City Council Resolutions Nos. 22 -045 and 22-050 adopted on June 7, 2022, as each may be amended or updated from time to time, are representative of the types of improvements authorized to be financed by CFD No. 4. Detailed scope an d limits of specific projects will be determined as appropriate, consistent with the standards and adopted policies of the City. Addition, deletion, or modification of the City Facilities for purposes of the JCFA may be made consistent with the requiremen ts of the City Council of the City, CFD No. 4 and the Act (e.g., as of the date of the JCFA sewer facilities are provided by the City).
D-1
EXHIBIT D
PAYMENT REQUEST FORM – CITY FACILITIES ACCOUNT
[All such payments shall be made by check or wire transfer in accordance with payment instructions submitted with this form and the Fiscal Agent shall have no duty or obligation to authenticate such payment instructions or the authorization thereof.]
[Fiscal Agent Address]
______________________
______________________
FULL/FINAL PAYMENT
The Fiscal Agent is hereby requested to pay from the City Facilities Account, as established by Resolution No. _________ of the Legislative Body of the District, adopted on ____________, 20___, and the Fiscal Agent Agreement or Indenture dated as of _______________, 20___, executed in accordance therewith, to the person, corporation, or other entity designated below as Payee, the sum set forth below such designation, in payment of the City Fees or City Facilities costs described below. The amount shown bel ow is due and payable to the City for the [check as applicable] : [__] City Fees [__] City Facilities costs described below and, in any case, has not formed the basis of any prior request for payment. Certification of Authorized Representatives of City are required to process this request - see Attachment #1.
Payee: __________________________________________________________________
Address: __________________________________________________________________
Amount: $_________________________________________________________________ Description of City Fees or City Facilities costs from the City Facilities Account or portion thereof accepted by Community Facilities District No. 4 and authorized to be paid to the Payee:
Attach documentation of amounts paid and identification of parcels. By requisitioning Bond proceeds as described herein, City is not passing upon, determining or assuming the tax -exempt status of the Bonds for federal or California income tax purposes.
[___] City Facilities Costs: _____________________________________________________
[___] Payment of City Fees:
D-2
Executed by Authorized Representative for
Community Facilities District No. 4**:
-EXHIBIT-
Signature ________________________________
Name: __________________________________
Title: ___________________________________
Dated: ______________________________
Payment Request No.: __________________
**This signature will constitute the School District’s written consent under the City Joint Community Facilities Agreement for the allocation of Bond Proceeds for City Facilities Costs, or City Fees, as provided in this and other duly -authorized Payment Request Forms for payment from the applicable account(s) of the Construction Fund.
D-3
ATTACHMENT NO. 1 TO EXHIBIT D
CERTIFICATION OF AUTHORIZED REPRESENTATIVES OF
OWNER AND CITY OF VICTORVILLE
The undersigned authorized representative of ____________________________ _______________________________, certifies the following: (a) The fee amounts listed in the attached documentation are due and payable to City for the City Fees described below; and (b) fund capital public facilities of City under the fee ordinances/resolutions of City setting the fees.
Authorized Representative of Owner:
-EXHIBIT-
Signature:
Name:
Title:
Date:
The undersigned authorized representative of the City of Victorville, certifies the following: (a) The fees amounts listed in the attached documentation are due and payable to City for the City Fees described below; and (b ) fund capital public facilities of City under the fee ordinances/resolutions of City setting the fees.
Authorized Representative of City of Victorville:
-EXHIBIT-
Signature:
Name:
Title:
Date:
EXHIBIT E
$_____________________
COMMUNITY FACILITIES DISTRICT NO. 4 OF THE
ADELANTO ELEMENTARY SCHOOL DISTRICT
SERIES ______ SPECIAL TAX BONDS
(San Bernardino County, California)
CERTIFICATE CONCERNING USE OF BOND PROCEEDS
I, the undersigned, hereby certify that I am a duly authorized officer of the City of Victorville (“City”), and am authorized to sign this Certificate Concerning Use of Bond Proceeds (“Certificate”) on behalf of the City in connecti on with the issuance of the above -captioned Series ____ Special Tax Bonds (“Bonds”). All capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Joint Community Facilities Agreement by and between Community Facilities District No. 4 of the Adelanto Elementary School District (“CFD No. 4” and “School District”), the City, and D.R. Horton Los Angeles Holding Company, Inc., dated __________, 2022 (“JCFA”).
I further certify on behalf of the City that:
1. City is a charter city and municipal corporation formed and operating pursuant to California law.
2. City provides municipal services and provides various public facilities and infrastructure within its boundaries.
3. City has been informed by the School District and CFD No. 4 that they are in the process of issuing the Bonds on behalf of CFD No. 4.
4. City is informed that a portion of the net Bond proceeds are being allocated in order to finance the costs of certain facilities to be owned and operated by the City, as further described in Attachment “1” attached herein (“City Facilities”).
5. The financing of the City Facilities is in satisfaction of the requirements of the City to provide services to the property within the boundaries of CFD No. 4.
6. The City will (i) maint ain adequate records to show what City Facilities have been financed with the proceeds of the Bonds, and (ii) will not use the City Facilities for any activity that constitutes a trade or business carried on by persons or entities other than governmental entities as provided in Section 141(b)(6) of the Internal Revenue Code (26 U.S.C. § 141).
This Certificate may be relied upon by the School District, CFD No. 4, and bond counsel in reaching its terms of confirmation of the tax-exempt status of the Bonds.
IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date set forth below.
Dated: __________________ CITY OF VICTORVILLE
By:
[Authorized Official Title]
ATTACHMENT “1”
The types of facilities to be owned and operated by the City and financed by CFD No. 4 (“City Facilities”) include: fire/fire protection, police, public park, roads and roadways and storm drain/flood control -prevention facilities, including, without limitation, facilities typically financed through fees, i ncluding, without limitation, fire/fire protection, police, public park, roads and roadways and storm drain/flood control -prevention of the City of Victorville (“City”), and all appurtenances and appurtenant work in connection with the foregoing, including the cost(s) of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such City Facilities and any other expense incidental to the construction, acquisition, modification, expan sion or rehabilitation of such City Facilities. The City Facilities listed herein are representative of the types of improvements authorized to be financed by CFD No. 4. Detailed scope and limits of specific projects will be determined as appropriate, co nsistent with the standards of the City. Addition, deletion , or modification of descriptions of the City Facilities may be made consistent with the requirements of the governing board of the City, CFD No. 4 and the Act (e.g., as of the date of the JCFA sewer facilities are provided by the City).
The City Facilities listed herein and those public improvement projects, public buildings, and public facilities described and/or listed in the City’s: (1) “Development Impact Fee Study” and “Sewer Capacity Fee Study” prepared by N.B.S. Government Finance Group; (2) “Development Impact Fee Justification Study Regional Drainage Facilities” prepared by DTA; (3) Capital Improvement Plan; (4) Development Impact Fees /Capacity Charges Master Fee Schedule ; and (5) Council Policy No. CP -22-01, all as approved by City Council Resolutions Nos. 22 -045 and 22-050 adopted on June 7, 2022, as each may be amended or updated from time to time, are representative of the types of improvements authorized to be financed by CFD No. 4. Detailed scope and limits of specific projects will be determined as appropriate, consistent with the standards and adopted policies of the City. Addition, deletion, or modification of t he City Facilities for purposes of the JCFA may be made consistent with the requirements of the City Council of the City, CFD No. 4 and the Act (e.g., as of the date of the JCFA sewer facilities are provided by the City).
Attachment E
Water District Joint Community Facilities Agreement
(Exhibit A to Resolution No. VWD 23-001)
JOINT COMMUNITY FACILITIES AGREEMENT
by and among
COMMUNITY FACILITIES DISTRICT NO. 4 OF THE
ADELANTO ELEMENTARY SCHOOL DISTRICT
and
VICTORVILLE WATER DISTRICT
and
D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.
Relating to Financing of Public Facilities Costs by
Community Facilities District No. 4 of the Adelanto Elementary School District
Dated as of _______________, 2022
JOINT COMMUNITY FACILITIES AGREEMENT
THIS JOINT COMMUNITY FACILITIES AGREEMENT (“JCFA”), dated as of _________________, 2022 (“Effective Date”), is entered into by and among COMMUNITY FACILITIES DISTRICT NO. 4 OF THE ADELANTO ELEMENTARY SCHOOL DISTRICT, a Mello-Roos community facilities district organized and existing under the laws of the State of California (“CFD No. 4”); the VICTORVILLE WATER DISTRICT , a County water district and subsidiary district of the City of Victorville, operating under the County Water District law, being California Water Code Sections 30000 et seq. (“Water District”); and D.R.
HORTON LOS ANGELES HOLDING COMPANY, INC. , a California corporation (“Owner”). The foregoing named parties may be referred to herein as either party or parties (“Party” or “Parties”).
W I T N E S S E T H:
WHEREAS, Owner is the current owner of that certain real property loc ated within the boundaries of the City of Victorville (“City”) and with in the boundaries of the Water District (“Property”), and is also located within the boundaries of the Adelanto Elementary School District (“School District”) and CFD No. 4, and is desc ribed in Exhibit “A” attached hereto and incorporated herein by this reference;
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (“Act”), the Board of Trustees of the School District (“Board”) in 2006 completed proceedings to establish CFD No. 4, the boundaries of which include the Property; WHEREAS, the Board, acting as the Legislative Body of CFD No. 4, conducted change proceedings on January 25, 2022, at which the Board considered revisions to the Rate and Method of Apportionment of Special Taxes for CFD No. 4 (“Rate and Method”), the facilities to be funded by CFD No. 4, and the authorized amount of bonded indebtedness; WHEREAS, on January 25, 2022, a special election was conducted in wh ich the qualified electo rs of CFD N o. 4 approve d by, more th an a two-thirds (2/3) vote, proposit ions changing the Rate and Me thod, cha nging the descri ptions of the facilities CFD No. 4 is authorized to finance and authorizing bon ded indebtedness for CFD N o. 4 in an amount not to exceed $20,000,000;
WHEREAS, the facilities eligible to be financed by CFD No. 4 include certain school facilities to be owned and operated by the School District (“School District Facilities”), as described in Exhibit “B,” and certain pub lic facilities to be owned and operated by the Water District (“Water District Facilities ”), as described in Exhibit “C,” all in order to accommodate development within the School District, CFD No. 4 and the Water District , including the Property;
2 WHEREAS, Section 53316.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the community facilities district only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to said Section; WHEREAS, Section 53316.2 of the Act further provides that at any time prior to the adoption of the resolution of formation creating a community facilities district or a re solution of change to alter a community facilities district, or a resolution or resolutions authorizing issuance of bonds pursuant to Section 53356 of the Act, the legislative bodies of two or more local public agencies may enter into a joint community fac ilities agreement pursuant to said Section and Sections 53316.4 and 53316.6 of the Act to exercise any power authorized by the Act with respect to the community facilities district being created if the legislative body of each entity adopts a resolution de claring that such a joint agreement would be beneficial to the residents of that entity;
WHEREAS, the Board of Trustees of the School District and the Board of Directors of the Water District (“Water District Board”) have each adopted such a resolution; WHEREAS, subsection (e) of Section 53316.2 of the Act provides that, notwithstanding any other provision of the Act, no local agency which is party to a joint exercise of powers agreement or joint community facilities agreement shall have primary responsibility for formation of a community facilities district unless that agency is one or more of certain specified types of agencies, including an agency that is reasonably expected to have responsibility for providing facilities or services to be fina nced by a larger share of the proceeds of special taxes (“Special Taxes”) and bonds (including equivalent securities secured by a pledge of the Special Taxes) (“Bonds”) of the community facilities district or districts created pursuant to the joint exercise of powers agreement or the joint community facilities agreement than any other local agency;
WHEREAS, the School District has determined that the School District Facilities will be financed by a larger share of the proceeds of the Special Taxes and the B onds of CFD No. 4 than the Water District Facilities;
WHEREAS, the Water District (in certain cases through the City) levies and collects certain fees /capacity charges on new development within the Water District , including the development of the Property, to finance the construction of facilities (“ Water District Fees ”), as further described in Exhibit “C” (the Water District Facilities); WHEREAS, Owner has requested that CFD No. 4 finance Water District Facilities in lieu of the payment of Water District Fees that would otherwise be payable with respect to development of the Property;
WHEREAS, the Water District has agreed to provide Owner with a credit against payment of Water District Fees to the extent that proceeds of the Bonds are made available to the Water District to fund the costs of the Water District Facilities, as described herein; and WHEREAS, CFD No. 4, the Water District and Owner desire to enter into this JCFA in accordance with Sections 53316.2, 53316.4 and 53316.6 of the Act in order to provide for the
3 financing of the Water District Facilities costs through proceeds generated by the issuance of Bonds by CFD No. 4.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES AND COVENANTS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS:
Section 1. Recitals. Each of the above recitals is true and correct and is incorporated herein.
Section 2. Effective Date . This JCFA shall become effective and binding upon the Parties hereto upon the Effective Date.
Section 3. CFD No. 4 . The School District has formed CFD No. 4 and is solely responsible for conducting proceedings for CFD No. 4 and authorization of the levy of the Special Taxes and the issuance of the Bonds and, if required by the School District as provided in any mitigation agreement or other agreement between the School District and Owner, an action under Sections 860 et seq. of the California Code of Civil Procedure relating thereto if the Board determines in its sole discretion that such action is appropriate.
Section 4. Issuance of B onds. It is anticipated that the Board, acting as the Legislative Body of CFD No. 4, and in accordance with sound municipal financing practices will issue the Bonds to finance the acquisition, construction and installation of the School District Facilities and the Water District Facilities in lieu of the payment of Water District Fees that would otherwise be payable with respect to development of the Property . The Board, acting as the Legislative Body of CFD No. 4, shall, in its sole discretion, determ ine whether, when, under what conditions and to what extent the Bonds shall be issued to finance the acquisition, construction and installation of the School District Facilities and the Water District Facilities .
The Bonds shall be issued only if all requ irements of State and federal law, as applicable, and all School District policies applicable to CFD No. 4 and the Bonds have been satisfied or waived by the School District/CFD No. 4. In no event shall the Water District or the Owner have any right to compel CFD No. 4 to issue Bonds.
The School District/CFD No. 4 agrees not to include references to the Water District in the information provided to the County of San Bernardino that is to be included in the property tax bills for taxpayers within CFD No. 4.
Section 5. Water District Facilities.
a. The Water District Facilities eligible to be funded by CFD No. 4 are described in Exhibit “C” attached hereto.
b. It is anticipated that CFD No. 4 will provide Bond proceeds to finance all or a portion of the acquisition, construction, and installation costs of the Water District Facilities in lieu of the payment of Water District Fees payable with respect to the deve lopment of the Property. If CFD No. 4 issues the Bonds, a portion of the proceeds of which are to be available to finance the acquisition, construction and installation of the Water District Facilities, the School District shall, or shall cause CFD No. 4 to, notify the Water District of the amount of such
4 proceeds available for such purpose within 15 days of such proceeds becoming so available. The School District/CFD No. 4 make no representation that, if proceeds of Bonds are made available to finance th e acquisition, construction and installation of the Water District Facilities , such proceeds will be sufficient to finance the acquisition, construction, and installation costs of all of the Water District Facilities , and neither the School District nor CF D No. 4 shall have any liability to the Water District or any Party if such proceeds are insufficient for such purpose. If CFD No. 4 does not issue Bonds to finance the acquisition, construction, and installation of the Water District Facilities, neither the School District nor CFD No. 4 shall have any obligation to provide any amounts to finance or pay the costs of the acquisition, construction, and installation of the Water District Facilities.
c. The Water District shall apply proceeds of the Bonds to the payment of costs of construction of any portion of the Water District Facilities only if such portion of the Water District Facilities is constructed under the direction and supervision, or under the authority of, the Water District.
Section 6. Disbursements.
a. Bond proceeds available for the acquisition, construction and installation of the Water District Facilities shall be deposited in a special fund or account (howsoever the same may be denominated, the “Water District Facilities Account”) to be established under th e fiscal agent agreement, indenture, or other instrument pursuant to which the Bonds are issued (howsoever the same may be denominated). Moneys on deposit in the Water District Facilities Account shall be invested and disbursed at the direction of CFD No. 4.
b. In conjunction with the recording of the final subdivision map(s) for the Property, the issuance of building permits for the construction of homes within the Property and/or receipt of building permits for such homes, the Owner, or its successors or assigns, may elect to advance Water District Fees (“Advances”) before any Bond proceeds have been deposited in the Water District Facilities Account or are otherwise available to pay for Water District Facilities. In such case, following the issuance of Bon ds, the Owner shall be entitled to reimbursement of such Advances by the Water District to the extent an equal or greater amount has been deposited in the Water District Facilities Account and disbursed to the Water District as set out herein. c. From time to time following the deposit of proceeds of the Bonds (“Bond Proceeds”) into the Water District Facilities Account, the Water District may notify the School District (on behalf of CFD No. 4) in writing and request a disbursement from the Water District Facilities Account to fund Water District Facilities by executing and submitting an executed Payment Request Form to CFD No. 4 and to the Bonds fiscal agent, as the Bond issuance documents shall provide. Upon receipt of such Payment Request Form, in substantially the form attached hereto as Exhibit “D,” completed in accordance with the terms of this Agreement, CFD No. 4, or the Bonds fiscal agent , shall wire transfer, or otherwise pay, to the Water District such requested funds to the extent that Bond Proc eeds are available in the Water District Facilities Account for such purpose.
d. CFD No. 4 shall process in a timely manner written requests for disbursements/payments received from the Water District that conform to the requirements hereof.
5 The Water District shall provide the Owner with a credit against Water District Fees otherwise payable with respect to the development of the Property on a dollar for dollar basis with respect to any disbursement from the Water District Facilities Account received by the Water District in excess of the amount equal to prior Advances that have been reimbursed. e. The Water District agrees that prior to executing and submitting a Payment Request Form to CFD No. 4, it shall review and approve all costs included in such request a nd will have already paid or incurred such costs of the Water District Facilities from its own funds subsequent to the date of this JCFA, or will disburse such amounts to pay the costs of the Water District Facilities following receipt of funds from CFD No. 4 for the Property. In the event that the Water District does not disburse any Bond proceeds received by it to third parties within five (5) banking days of receipt, it will trace and report to CFD No. 4 all earnin gs, if any, earned by the Water District, from the date of receipt of such Bond proceeds to the date of expenditure for costs of the Water District Facilities. If required by the preceding sentence, such report shall be delivered at least semiannually unt il all Bond proceeds received are expended by the Water District.
f. The Water District agrees to maintain adequate internal controls over its payment function and to maintain accounting records in accordance with generally accepted accounting procedures as to receipt and expenditure of Bond proceeds for Water District Facilities . The Water District will, upon request, provide the School District and/or the Owner with access to the Water District’s records related to the Water District Facilities and will pr ovide to the School District its annual financial report certified by an independent certified public accountant for purposes of assisting the School District in calculating the arbitrage rebate obligation of CFD No. 4 for the Bonds, if any.
g. The School District or CFD No. 4 agrees to maintain full and accurate records of all amounts, and investment earnings, if any, expended from the Water District Facilities Account. The School District or CFD No. 4 will, upon request, provide the Water District and/or the Owner with access to the School District’s or CFD No. 4’s records related to the Water District Facilities Account.
h. Notwithstanding the foregoing, CFD No. 4 and Water District acknowledge that CFD No. 4 has the ultimate responsibility for issuance of the Bonds, the administration of CFD No. 4 and the federally tax -exempt status of any Bonds issued by CFD No. 4. Accordingly the Board, acting as the Legislative Body of CFD No. 4, shall have ultimate responsibility for making all decisions with respect to the issuance of any Bonds and the levy of any Special Taxes. i. In connection with the issuance of any Bonds issued by CFD No. 4 as federally tax-exempt securities, the Water District agrees to execute and deliver a Certificate Concerning Use of Bond Proceeds (“Water District Certificate ”), the form of which is attached hereto as Exhibit “E,” in order for bond counsel to conclude that interest on such Bonds will be excluded from gross income under Section 103 of the Internal Revenue Code of 1986, as amended, an d any other provision of law. If applicable, each such Water District Certificate shall be provided by bond counsel prior to the pricing of the Bonds, and shall be executed by a duly authorized officer of the Water District within fifteen (15) calendar da ys of receipt of each such Water District Certificate . Should Water District fail to execute and deliver the applicable Water
6 District Certificate within fifteen (15) calendar days, the School District may choose not to include the Water District Facilities in the issuance of Bonds, or issue federally taxable Bonds to fund the Water District Facilities and federally tax -exempt Bonds to fund the School Facilities.
The decision regarding whether to issue Bonds for Water District Facilities, and, if so, whet her they should be issued as federally taxable or tax -exempt securities, shall be the decision of the Board, acting as the Legislative Body of CFD No. 4, in its sole discretion.
Section 7. Construction, Ownership and Maintenance of School District Facilities. The Water District shall have no responsibility for the acquisition, construction, and installation of the School District Facilities. The School District Facilities shall be and remain the sole and separate property of the School District and shall be operated, maintained, and utilized by the School District. The Water District shall not have any ownership interest in, or responsibility for the operation, maintenance, or utilization of, the School District Facilities.
Section 8. Construction, Ownership and Maintenance of Water District Facilities. The School District shall have no responsibility for the acquisition, construction, and installation of the Water District Facilities. The Water District Facilities shall be and remain the sole and separate property of the Water District and shall be operated, maintained, and utilized by the Water District . The School District shall not have any ownership interest in the Water District Facilities , and the School District shall have no responsibility for the operation, maintenance, or utilization of the Water District Facilities.
Section 9. Indemnification.
a. The Water District agrees to indemnify, defend and hold harmless the School District and CFD No. 4, and their respective officers, employees and agents, and each and every one of them, fr om and against any and all claims, losses, expenses, suits actions, decrees, judgments, awards, attorneys’ fees and court costs which the School District or CFD No. 4, or their respective officers, employees and agents, or any combination thereof, may suff er or which may be sought against or recovered or obtained from the School District or CFD No. 4, or their respective officers, employees or agents, or any combination thereof, as a result of or by reason of or arising out of or in consequence of the acqui sition, construction, installation, operation, maintenance or utilization of the Water District Facilities, including the use of Bond proceeds. If the Water District fails to do so, the School District and CFD No. 4 shall have the right, but not the oblig ation, to defend the same and charge all of the direct and incidental costs of such defense, including any attorneys’ fees or court costs, to and recover the same from the Water District.
No indemnification is required to be paid by the Water District for any claim, loss or expense arising from the willful misconduct or negligence of the School District or CFD No. 4, or their respective officers, employees, or agents.
b. The School District agrees to indemnify, defend and hold harmless the Water District, and its officers, employees and agents, and each and every one of them, from and against any and all claims, losses, expenses, suits, actions, decrees, judgments, awards, attorneys’ fees and court costs which the Water District, or its officers, employees and agents, or any combination thereof, may suffer or which may be sought against or recovered or obtained from
7 the Water District, or its respective officers, employees or agents, or any combination thereof, as a result of or by reason of or arising out of or in consequence of the acquisition, construction, installation, operation, maintenance or utilization of the School Facilities or the issuance of the Bonds. If the School District fails to do so, the Water District shall have the right, but not the obligation, to defend the same and charge all of the direct and incidental costs of such defense, including any attorneys’ fees or court costs, to and recover the same from the School District.
No indemnification is required to be paid by the School District for any claim, loss or expense arising from the willful misconduct or negligence of the Water District, or its officers, employees, or agents.
c. Owner agrees to indemnify, defend and hold harmless the School District, CFD No. 4 and the Water District, and their respective officers, employees and agents, and each and every one of them, from and against any and all claims, losses, expenses, suits actions, decrees, judgments, awards, reasonable attorneys’ fees and court costs which the School District, CFD No. 4 or the Water District , or their respective officers, employees and agents, or any combination thereof, may suffer or which may be sought against or recovered or obtained from the School District, CFD No. 4 or the Water District, or their respective officers, employees or agents, or any combination thereof, as a result of or by reason of or arising out of or in consequence of any act or omission of Owner with respect to this JCFA. If Owner fails to do so, the School District, CFD No. 4 and the Water District shall have the right, but not the obligation, to defend the same and charge all of the direct and incidental costs of such defense, including any reasonable attorneys’ fees or court costs, to and recover the same from Owner.
No indemnification is required to be paid by Owner for any claim, loss or expense arising from the willful misconduct or negligence of School District (if indemnification is sought by the School District), CFD No. 4 (if indemnification is sought by CFD No. 4) or the Water District (if indemnification is sought by the Water District ), or their respective officers, employees, or agents (if indemnification is sought thereby).
Section 10. Nature of Agreement; Allocation of Special Taxes . This JCFA shall constitute a joint community facilities agreement entered into pursuant to Sections 53316.2, 53316.4 and 53316.6 of the Act. The Board, acting as the Legislative Body of CFD No. 4, shall annually levy the Special Taxes as provided for in the proceedings for the formation an d amendment of CFD No. 4, including, without limitation, the First Amended Rate and Method of Apportionment of Special Taxes for CFD No. 4. The entire amount of any Special Tax levied by CFD No. 4 not needed for payment of interest or principal on Bonds or the costs of administering CFD No. 4 shall inure to the benefit of CFD No. 4 to be used as determined by the School District consistent with applicable law and associated agreements. The entire amount of the proceeds of the Special Taxes shall be allocated and distributed by the School District.
Section 11. Prevailing Wage. The Water District is a public agency in the State of California and is subject to provisions of law relating to public contracts. It is agreed that all applicable provisions of law relating to public contracts are a part of this JCFA to the same extent as though set forth herein and will be complied with by the Water District (and by Owner, to the extent Owner is constructing any Water District Facilities ), including but not limited to, the
8 payment of prevailing wages and other requirements of California Labor Code Section 1720 et seq.
Section 12. Debt Management Policy Compliance . The School District and the Water District are both public agencies required to maintain a debt management policy in compliance with Senate Bill No. 1029 (2016). Both the School District and the Water District shall certify compliance with applicable law and all legal requirements required as may relate to this JCFA, the issuance of the Bonds or the allocation and use of Bond proceeds.
Section 13. Limitation of Rights to Parties . Nothing in this JCFA expressed or implied is intended or shall be construed to give to any person other than the School District, the Water District, the Owner, and CFD No. 4 any legal or equitable right, remedy or claim under or in respect of this JCFA or any covenant, condition or provision herein contained; and all such covenants, conditions and provisions are and shall be held to be for the sole and exclusive benefit of the School District, the Water District, the Owner and CFD No. 4.
Section 14. Notices. All written notices to be given hereunder shall be given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:
If to the School District: Adelanto Elementary School District 11824 Air Expressway
Adelanto, CA 92301
Attention: Assistant Superintendent of Business Services Email: [email protected]
If to CFD No. 4: Community Facilities District No. 4 of the Adelanto Elementary School District
c/o Adelanto Elementary School District
11824 Air Expressway
Adelanto, CA 92301
Attention: Assistant Superintendent of Business Services Email: [email protected]
With a copy to: Atkinson, Andelson, Loya, Ruud & Romo 20 Pacifica, Suite 1100
Irvine, California 92618
Attn: Robert E. Anslow
Fax: (949) 453-4260
Email: [email protected]
If to the Water District: 14343 Civic Drive
Victorville, CA 92392
Attention: Keith C. Metzler, General Manager
Email: [email protected]
9 With a copy to Green de Bortnowsky, LLP
30077 Agoura Court, Suite 210
Agoura Hills, CA 93101
Attn: Andre de Bortnowsky, Water District Legal Counsel [email protected]
If to Owner: D.R. Horton Los Angeles Holding Company, Inc. 2280 Wardlow Circle, Suite 100
Corona, CA 92878
Attn: Vicki Gullion, Assistant Secretary
Email: [email protected]
Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if given by courier or delivery service or if personally served or delivered, upon delivery, (b) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, or (c) if given by any other means, upon delivery at the address specified in this Section.
If notice is given by electronic communication, whether by email or tele copier, notice shall be deemed delivered upon obtaining the then -current addressee’s email address or telecopier, and upon the sender’s receipt of an appropriate answer back or other written acknowledgement from the addressee of successful transmission.
Section 15. California Law . This JCFA shall be governed and construed in accordance with the laws of the State of California.
Section 16. Severability. If any part of this JCFA is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this JCFA s hall be given effect to the fullest extent reasonably possible.
Section 17. Successors. This JCFA shall be binding upon and inure to the benefit of the successors of the Parties hereto.
Section 18. Amendment and Assignment . This JCFA may be amended at any time but only in writing signed by each Party hereto. This JCFA may be assigned, in whole or in part, by the Owner to the purchaser of any parcel of land within the Property provided, however, such assignment shall not be effective unless and until the School District and the Water District have been notified, in writing, of such assignment.
Section 19. Entire Agreement. This JCFA contains the entire agreement between the Parties with respect to the matters provided for in this JCFA and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this JCFA.
005001.00135
37803144.33 10
Section 20. Counterparts. This JCFA may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument.
Section 21. Construction. The parties hereto acknowledge and agree that each has been given the opportunity to review this JCFA with legal counsel independently, and/or has the requisite experience and sophistication to understand, interpret, and agree to the particular language of the provis ions hereof. In the event of an ambiguity in or dispute regarding the interpretation of same, the interpretation of this JCFA shall not be resolved by any rule of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the drafter.
Section 22. Attorneys' Fees. ln the event of the bringing of any action or suit by any Party against any other Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the losing Party all costs and expenses of suit, including reasonable attorneys' fees.
Section 23. Water District Costs and Expenses . The Owner agrees to pay the Water District its costs and expenses relating to the review and preparation of this JCFA and any fee credit agreement entered into with the Water District, including the Water District’s legal cost relating thereto.
Section 24. Termination. This JCFA shall terminate on the date which is ten (10) years after the Effective Date, if by such date no Bond Proceeds have been deposited to the Water District Facilities Account. In the event that Bond Proceeds have been so deposited to the Water District Facilities Account within ten (10) years of the Effective Date, this JCFA shall terminate on the date which is 5 years after t he date on which no funds remain on deposit in the Water District Facilities Account.
IN WITNESS WHEREOF, the parties hereto have executed this JCFA as of the date first written above.
(Signatures on following page)
- JCFA Signature Page -
APPROVED AS TO FORM:
ATKINSON, ANDELSON, LOYA,
RUUD & ROMO
Attorneys for Adelanto Elementary
School District
By: ___________________________
D.R. HORTON LOS ANGELES
HOLDING COMPANY, INC.
By:
Title:
COMMUNITY FACILITIES DISTRICT
NO. 4 OF THE ADELANTO
ELEMENTARY SCHOOL DISTRICT
By: ______________________________
President of the Board of Trustees of
the Adelanto Elementary School
District, Acting as the Legislative
Body of CFD No. 4
ATTEST:
By:
Clerk of the Board of Trustees of the
Adelanto Elementary School District,
Acting as the Legislative Body of CFD
No. 4
VICTORVILLE WATER DISTRICT
By:
Debra Jones, Chairman
ATTEST:
By:
Jennifer Thompson, District Secretary
APPROVED AS TO FORM
____________________________________
Andre de Bortnowsky, Water District Legal
Counsel
A-1
EXHIBIT A
DESCRIPTION OF THE PROPERTY
Owner: D.R. Horton Los Angeles Holding Company, Inc., a California corporation
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-11
B-1
EXHIBIT B
SCHOOL DISTRICT FACILITIES DESCRIPTION
C-1
EXHIBIT C
WATER DISTRICT FACILITIES DESCRIPTION
Facilities of the Victorville Water District (Water District):
“Facilities” includes water and sewer (wastewater) facilities, including, without limitation, facilities typically financed through fees, including, without limitation, the acquisition of capacity in the sewer system(s) and/or water system(s) of the Victorville Water District (“Water District”), and all appurtenances and appurte nant work in connection with the foregoing, including the cost(s) of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Water District Facilities and any other expense i ncidental to the construction, acquisition, modification, expansion or rehabilitation of such Water District Facilities. The Water District Facilities listed herein are representative of the types of improvements authorized to be financed by CFD No. 4. De tailed scope and limits of specific projects will be determined as appropriate, consistent with the standards of the Water District. Addition, deletion or modification of descriptions of the Water District Facilities may be made consistent with the requir ements of the governing board of the Water District, CFD No. 4 and the Act (e.g., as of the date of the JCFA sewer facilities are provided by the City).
The Water District Facilities listed herein and those public improvement projects, public buildings, and public facilities described and/or listed in the City’s: (1) “Development Impact Fee Study” and “Sewer Capacity Fee Study” prepared by N.B.S. Government Finance Group; (2) Capital Improvement Plan; (3) “Development Impact Fees/Capacity Charges Mast er Fee Schedule; and ( 4) Council Policy No. CP -22-01, all as approved by City Council Resolutions Nos. 22-045 and 22 -050 and Water District Resolution Nos. 22 -005 and VWD-007 adopted on June 7, 2022, as each may be amended or updated from time to time, are representative of the types of improvements authorized to be financed by CFD No. 4. Detailed scope and limits of specific projects will be determined as appropriate , consistent with the standards and adopted policies of the City and the Water District . Addition, deletion, or modification of the Water District Facilities for purposes of the JCFA may be made consistent with the requirements of the City Council of the City, the Water District Board, CFD No. 4 and the Act (e.g., as of the date of the JCFA sewer facilities are provided by the City).
D-1
EXHIBIT D
PAYMENT REQUEST FORM – WATER DISTRICT FACILITIES ACCOUNT
[All such payments shall be made by check or wire transfer in accordance with payment instructions submitted with this form and the Fiscal Agent shall have no duty or obligation to authenticate such payment instructions or the authorization thereof.]
[Fiscal Agent Address]
______________________
______________________
FULL/FINAL PAYMENT
The Fiscal Agent is hereby requested to pay from the Water District Facilities Account, as established by Resolution No. _________ of the Legislative Body of the District, adopted on ____________, 20___, and the Fiscal Agent Agreement or Indenture dated as of _______________, 20___, executed in accordance therewith, to the person, c orporation, or other entity designated below as Payee, the sum set forth below such designation, in payment of the Water District Fees or Water District Facilities costs described below. The amount shown below is (i) due and payable to the Water District for the [check as applicable] : [__] Water District Fees [__] Water District Facilities costs) described below and, in any case, has not formed the basis of any prior request for payment. Certification of Authorized Representatives of Water District are required to process this request- see Attachment #1.
Payee: __________________________________________________________________
Address: __________________________________________________________________
Amount: $_________________________________________________________________ Description of Water District Fees or Water District Facilities costs from the Water District Facilities Account or portion thereof accepted by Community Facilities District No. 4 and authorized to be paid to the Payee: Attach documentation of amounts paid and identification of parcels. By requisitioning Bond proceeds as described herein, Water District is not passing upon, determining or assuming the tax -exempt status of the Bonds for federal or California income tax purposes.
[___] Water District Facilities Costs:_______________________________________________ [___] Payment of Water District Fees:
D-2
Executed by Authorized Representative for
Community Facilities District No. 4**:
-EXHIBIT-
Signature ________________________________
Name: __________________________________
Title: ___________________________________
Dated: ______________________________
Payment Request No.: __________________
**This signature will constitute the School District’ s written consent under the Water District Joint Community Facilities Agreement for the allocation of Bond Proceeds for Water District Facilities Costs, or Water District Fees, as provided in this and other duly-authorized Payment Request Forms for payment from the applicable account(s) of the Construction Fund.
D-3
ATTACHMENT NO. 1 TO EXHIBIT D
CERTIFICATION OF AUTHORIZED REPRESENTATIVES OF
OWNER AND VICTORVILLE WATER DISTRICT
The undersigned authorized representative of ____________________________ _______________________________, certifies the following: (a) The fee amounts listed in the attached documentation are due and payable to Water District for the Water District Fees described below; and (b) fund capital public facilities of Water District under the fee ordinances/resolutions of Water District setting the fees.
Authorized Representative of Owner:
-EXHIBIT-
Signature:
Name:
Title:
Date:
The undersigned authorized representative of the Victorville Water District , certifies the following: (a) The fees amounts listed in the attached documentation are due and payable to City or Water District, as shall be applicable, for the Water District Fe es described below ; and (b) fund capital public facilities of Water District under the fee ordinances/resolutions of Water District setting the fees.
Authorized Representative of Victorville Water
District:
-EXHIBIT-
Signature:
Name:
Title:
Date:
EXHIBIT E
$_____________________
COMMUNITY FACILITIES DISTRICT NO. 4 OF THE
ADELANTO ELEMENTARY SCHOOL DISTRICT
SERIES ______ SPECIAL TAX BONDS
(San Bernardino County, California)
CERTIFICATE CONCERNING USE OF BOND PROCEEDS
I, the undersigned, hereby certify that I am a duly authorized officer of the Victorville Water District (“Water District”), and am authorized to sign this Certificate Concerning Use of Bond Proceeds (“Certificate”) on behalf of the Water District in connection with the issuance of the above -captioned Series ____ Special Tax Bonds (“Bonds”). All capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Joint Community Facilities Agreement by and between Community Facilities District No. 4 of the Adelanto Elementary School District ( “CFD No. 4” and “School District”), the Water District, and D.R. Horton Los Angeles Holding Company, Inc., dated __________, 2022 (“JCFA”).
I further certify on behalf of the Water District that:
1. Water District is a public water district formed and operating pursuant to California law.
2. Water District provides water and wastewater services and provides various public facilities and infrastructure within its boundaries.
3. Water District has been informed by the School District and CFD No. 4 that they are in the process of issuing the Bonds on behalf of CFD No. 4.
4. Water District is informed th at a portion of the net Bond proceeds are being allocated in order to finance the costs of certain facilities to be owned and operated by the Water District, as further described in Attachment “1” attached herein (“Water District Facilities”).
5. The financing of the Water District Facilities is in satisfaction of the requirements of the Water District and the City of Victorville to provide services to the property within the boundaries of CFD No. 4.
6. The Water District will (i) maintain adequate records to show what Water District Facilities have been financed with the proceeds of the Bonds, and (ii) will not use the Water District Facilities for any activity that constitutes a trade or business carried on by persons or entities other than governmental entities as provided in Section 141(b)(6) of the Internal Revenue Code (26 U.S.C. § 141).
This Certificate may be relied upon by the School District, CFD No. 4, and bond counsel in reaching its terms of confirmation of the tax-exempt status of the Bonds.
IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date set forth below.
Dated: __________________ VICTORVILLE WATER DISTRICT
By:
[Authorized Official Title]
ATTACHMENT “1”
“Water District Facilities” includes water and sewer (wastewater) facilities, including, without limitation, facilities typically financed through fees, including, without limitation, the acquisition of capacity in the sewer system(s) and/or water system(s) of the Victorville Water District (“Water District”), and all appurtenances and appurtenant work in connection with the foregoing, including the cost(s) of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Water D istrict Facilities and any other expense incidental to the construction, acquisition, modification, expansion or rehabilitation of such Water District Facilities. The Water District Facilities listed herein are representative of the types of improvements a uthorized to be financed by CFD No. 4. Detailed scope and limits of specific projects will be determined as appropriate, consistent with the standards of the Water District. Addition, deletion or modification of descriptions of the Water District Facilities may be made consistent with the requirements of the governing board of the Water District, CFD No. 4 and the Act (e.g., as of the date of the JCFA sewer facilities are provided by the City).
The Water District Facilities listed herein and those public improvement projects, public buildings, and public facilities described and/or listed in the City’s: (1) [“Development Impact Fee Study” and “Sewer Capacity Fee Study” prepared by N.B.S. Government Finance Group; ] (2) “ Capital Improvement Plan ; (3) Development Impact Fees/Capacity Charges Master Fee Schedule; and ( 4) Council Policy No. CP -22-01, all as approved by City Council Resolutions Nos. 22-045 and 22 -050 and Water District Resolution Nos. 22 -005 and VWD -007 adopted on June 7, 2022, as each may be amended or updated from time to time, are representative of the types of improvements authorized to be financed by CFD No. 4. Detailed scope and limits of specific p rojects will be determined as appropriate, consistent with the standards and adopted policies of the City and the Water District . Addition, deletion, or modification of the Water District Facilities for purposes of the JCFA may be made consistent with the requirements of the City Council of the City, the Water District Board, CFD No. 4 and the Act (e.g., as of the date of the JCFA sewer facilities are provided by the City).
Attachment F
List of Facilities Eligible to be
Financed by CFD No. 4
DR Horton
Mojave 276 (Tract Nos. 13816 and 16463) - City of Victorville Preliminary List of Authorized Facilities
I. Fees Eligibel to be financed by the CFD - Confirmed by the City City of Victorville (Development Impact Fees) Quantity Total Per DU Fire 329 Per DU 276 90,752$ 329 Sewer Connection/Capacity Fee 350$ Per DU 276 96,600 350 Parks 5,046 Per DU 276 1,392,660 5,046 Roads 4,470 Per DU 276 1,233,692 4,470 Sub-total 2,813,704$ 10,195$
Victorville Water District
Water Service Connection Fee (3/4" Meter) - Domestic 3,778 Per Meter 276 1,042,728 3,778 Meter Cost (3/4" Meter) - Domestic 454 Per Meter 276 125,304 454 Service Line Installation (3/4" Meter) - Domestic 1,290 Per Meter 276 356,040 1,290 Sub-total 1,524,072$ 5,522$
Total City Fees and Water District Fees 4,337,776$ 15,717$ II. Fees Eligible to be financed if Taxable Bond are Issuance City of Victorville (Development Impact Fees) Quantity Total Per DU Storm Drain 2,585$ Per Acre 80 206,542$ 748$ Facilities 1,334 Per DU 276 368,281 1,334 Police 139 Per DU 276 38,383 139 Sub-total 613,205$ 2,222$
Victorville Water District
Alternate Water Service Fee (3/4" Meter) - Domestic 1,364 Per Meter 276 376,464 1,364 Sub-total 376,464$ 1,364$
Total City Fees and Water District Fees 989,669$ 3,586$ Rate
Rate
Item Number: 15
City Council / Board of Directors
Written Communications
Meeting of: February 7, 2023
Submitted By:
Brian Gengler, City Engineer
Subject:
Wellness Center Project - Phase 1 Supplemental Work Order (SWO) Nos. 8 and 9 and Phase 2 SWO Nos. 2 and 3
Recommendation:
That the Honorable City Council approve for the Wellness Center construction contracts:
for Phase 1, SWO Nos. 8 and 9, resulting in an increase not to exceed $736,723.97; and for Phase 2, SWO Nos. 2 and 3, resulting in an increase not to exceed $207,556.86.
Fiscal Impact:
This action will result in a fiscal impact of $944,280.83. An additional appropriation is not required. The SWO discussed in this staff report are being funded by American Rescue Plan Act (ARPA) funding available for capital projects. There are sufficient funds available from ARPA to cover the capital expenses for this contract. Please refer to the budget account number, funding source and the amount available shown below.
Account No. Funding Source Amount Available
2770010-55000-97063 ARPA (Capital) $1,394,430.57
To date, prior to this recommended award, contracts and purchases totaling an estimated $34,990,119 have been approved for this project. Taking action in accordance with the staff recommendation for this item will increase total contracts and purchases to an estimated $35,934,400.
The Homekey grant requires the City to provide a local funding match of $4,075,190. With this approval, the City will surpass the minimum match requirement by $9,522,849, with expenditures under Homeless, Housing, Assistance and Prevention (HHAP), ARPA, Permanent Local Housing Allocation (PLHA) and Community Development Block Grant (CDBG) funding.
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Although the match of $4,075,190 was budgeted under Measure P in Fiscal Year 2022- 2023, staff is recommending continued use of ARPA funding in lieu of Measure P at this time. Use of the ARPA funds in this manner is consistent with the funding plan approved by the City Council on July 20, 2021, and authorization granted to the City Manager to reallocate ARPA funds among funding categories.
Based on the new Homekey expenditure deadline of March 25, 2023 (discussed further in the Background section below), project expenditures from Homekey funding will be prioritized before ARPA funds are utilized.
Strategic Plan Goal:
This project aligns with Goal D, Strategy 1 in the 2020 Strategic Plan, “Reduce Homelessness” and “Establish a wellness and recuperative care center as a navigation resource and shelter for homeless and at-risk populations”.
Background:
The Wellness Center, to be located at 16902 First Street in Old Town, will include a non- congregate design of modular housing buildings with 110 separate units allowing a minimum capacity of 170 beds. The Wellness Center will combine a low-barrier emergency shelter, recuperative care facility, medical clinic, interim housing, and wraparound support services.
On September 29, 2021, City Council approved Resolution No. 21-101 authorizing staff to pursue funding from the California Department of Housing and Community Development (HCD) for Homekey Program funds to construct and operate the Wellness Center. On December 15, 2021, the City was notified by HCD of an award in the amount of $28,004,058 under Homekey Round 2 for the Wellness Center project, of which $23,612,058 was awarded to fund capital construction costs and $4,392,000 for operational expenses.
On March 15, 2022, City Council approved an agreement for construction management with the Pacifica Services, Inc., in an amount not to exceed of $2,373,601. Also, on March 15, 2022, City Council approved the initial ezIQC Sourcewell construction contract/Work Order with Angeles Contractor, Inc. (“ACI”) in the amount of $4,827,947.76, for the construction of Phase 1 of the Victorville Wellness Center (the “Project”).
On April 1, 2022, construction for Phase 1 started. The scope of the Phase 1 construction includes the following: the VVWRA Interceptor through the project boundaries; grading of the site; a stormwater detention basin; and underground utilities for storm drain, sewer, domestic water, fire suppression, electrical and gas. The project was separated into two construction phases to start construction as soon as feasible with the goal of completing construction by December 15, 2022, which was the original Homekey grant deadline.
Phase 1 was started while the plans for the project were being completed. The Phase 1 plans were subsequently approved by the City for grading, drainage, sewer, domestic water, fire suppression, plumbing and electrical.
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On April 5, 2022, City Council approved contracts with Connect Homes in the amount not to exceed of $5,067,607.00 for the manufacturing of 46 modular shelter units, and Urban Bloc in the amount not to exceed of $1,200,021.00 for the manufacturing of five modular bathroom units. On June 2, 2022, City Council approved a contract with Connect Homes in the amount not to exceed of $3,385,515.00 for the manufacturing of modular units for four community buildings.
On July 19, 2022, City Council approved SWO Nos. 1 through 4 totaling $763,127.02 for the Phase 1 construction contract. The increase in cost was due to added fabric and rock under two building pads, additional dewatering for a VVWRA interceptor, and transportation costs for the Connect Homes modular shelter units.
The plans for Phase 2 of the Project were subsequently completed to include street improvements, structural work, architectural work, and landscaping. The scope of the Phase 2 construction includes a sewer lift station and grease interceptor; street improvements, a fire access road, a parking lot; building foundations; anchoring the modular buildings to the foundations; electrical wiring; utility connections to the buildings; finishes on the community buildings; food service equipment in the cafeteria building; wood decking for porches and patios; accessible concrete sidewalk and paths; irrigation; landscaping; fencing; gates; and other miscellaneous improvements.
On August 16, 2022, City Council approved a Construction Contract / Work Order with Angeles Contractor Inc., for the Phase 2 construction of the Wellness Center Project in an amount not to exceed of $15,427,974.88. On the same agenda, City Council approved the purchase, manufacturing, and delivery of the sewer lift station from ROMTEC Utilities in the amount of $292,277.88. The Phase 2 construction started on October 3, 2022.
On October 4, 2022, City Council approved SWO No. 7 in the amount of $302,968.86 for the Phase 1 construction contract. The increase in cost was due to added work scope for electrical work for the SCE electrical service to the project site. This work was not shown on the plans which were included for the award of the original contract. The additional work included an additional length of underground conduit, a relocated main service connection point, and a relocated main electrical switchboard. On December 20, 2022, City Council approved SWO Nos. 5 and 6, in an amount not to exceed $213,784.73 which included credits to SWO Nos. 1, 2 and 3 and offsite electrical work for the SCE service.
On January 17, 2023, City Council approved SWO No. 1 for the Phase 2 construction contract in an amount not to exceed $173,929.87 which included additional for the four community buildings.
There have been delays in the project schedule, mainly due to ground water being higher than expected, revisions to the plans and delays in procuring various equipment and materials. As stated previously, the original completion date for construction required by the Homekey grant award was December 15, 2022. However, as authorized within the Homekey Standard Agreement, staff requested a time extension from HCD, which administers the Homekey grant program, to allow for the completion of construction beyond the original Homekey construction deadline. On September 1, 2022, staff 2 9
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received notice from HCD that the construction deadline would be extended by 100 days to March 25, 2023. On November 29, 2022, staff received notice from HCD that the expenditure deadline would also be extended by to March 25, 2023, to match the construction deadline.
Discussion:
As discussed above, for Phase 1, SWO Nos. 1 through 7 were previously approved by City Council. SWO No. 8 documents added scope for the following various items including: a detention basin access road; additional excavation; a concrete drainage channel; repair of an existing storm drain traversing through the site; additional onsite electrical work; a gas main service; additional erosion controls and temporary fencing; additional insurance required by the City; added fire service valves; delay costs due to changes in grading; changes in water valve locations; an added storm drain channel structure; and added bond fees. SWO No. 9 documents an increase for the general requirements which includes various items for labor and equipment required to construct Phase 1.
Shown in Table 1 below is a summary of the SWO to date for the Phase 1 construction contract.
Table 1
Phase 1 Supplemental Work Order Summary
SWO
No. Description Amount
1 Fabric & rock under building pads 5, 6 & 7 $120,399.24 2 Dewatering system for VVWRA interceptor $165,785.99
3 Additional dewatering system for VVWRA interceptor $254,552.92 4 Transportation - Connect Home 46 modular shelter units $222,388.87 5 Additional work for drainage and water systems $447,908.47 6 Credits to SWO Nos. 1, 3 & 4 -$234,123.74
7 Offsite electrical work for SCE service $302,968.86
8 Various items $704,326.76
9 General Conditions of Phase 1 Contract $32,397.21
Total $2,016,604.58
Shown in Table 2 below is a summary of the Phase 2 construction contract costs.
Table 2
Phase 1 Construction Contract Summary
Original Contract Amount $4,827,947.76
SWO Nos. 1 - 7 (previously approved) $1,279,880.61
SWO Nos. 8 &9 $736,723.97
Total Contract Amount $6,844,552.34
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Also discussed above, for Phase 2, SWO No. 1 was previously approved by City Council.
SWO No. 2 documents added scope for the following various items including: extending electrical conduit and wires due to the relocation of the main switchboard; changes to the kitchen equipment; additional permanent chain link fence; and additional insurance required by the City. SWO No. 3 documents added scope for the following items including:
additional sidewalk at the First St. cul-de-sac; and additional waterproofing for building foundations required by the City.
Shown in Table 3 below is a summary of the Phase 2 construction contract costs.
Table 3
Phase 2 Supplemental Work Order Summary
SWO
No. Description Amount
1 Various changes to modular buildings $173,929.87
2 Various items $150,220.85
3 Additional sidewalk and waterproofing for buildings $57,336.01 Total $381,486.73
Shown in Table 4 below is a summary of the Phase 2 construction contract costs.
Table 4
Phase 2 Construction Contract Summary
Original Contract Amount $15,427,974.88
SWO No. 1 (previously approved) $173,929.87
SWO Nos. 2 & 3 $207,556.86
Total Contract Amount $15,809,461.61
The backup for the SWO is included in Attachment A. Staff and Pacifica Services, Inc., have reviewed the added work and associated costs and recommend approval. Staff recommends that the City Council approve for the Wellness Center construction contracts: for Phase 1, SWO Nos. 8 and 9, resulting in an increase not to exceed $736,723.97; and Phase 2, SWO Nos. 2 and 3, resulting in an increase not to exceed $207,556.86.
Staff remains available for any questions the City Council may have.
Attachments: A. Supplemental Work Order Backup
ATTACHMENT A
$3,901.00$3,901.00$5,028.00Kitcor*existing onsite sub, no other quotes for comparison ATTACHMENT FOR NPP ITEM 11400000-1001
$16,938.00$16,938.00$21,831.39Christianbelle*existing onsite sub, no other quotes for comparison ATTACHMENT FOR NPP ITEM 26000000-1009
Item Number: 16
City Council / Board of Directors
Written Communications
Meeting of: February 7, 2023
Submitted By:
Doug Mathews, Director of Public Works and Water
Subject:
Approve the Purchase of a Replacement Trailer Mounted Vacuum Excavation Machine, Project CC23-064.
Recommendation:
That the Honorable Victorville Water District Board of Directors (Board) approve the purchase of a replacement trailer mounted vacuum excavation machine, Project CC23- 064, for an amount not to exceed $131,571.01 from Haaker Equipment Company.
Fiscal Impact:
This purchase proposes encumbering and expending $131,571.01 of budgeted funds. No additional appropriation is required. The funds were budgeted under the Victorville Water District budget in the following account code:
•4100535 – 55040 – 74437
o4100535 – Water Fund, Field Services
o55040 – Equipment
o74437 – Vactor replacement # 42519
Strategic Plan Goal:
Strategic Plan Goal E, Strategy 1: “Invest in Infrastructure” and “Implement the City’s Capital Improvement Program to meet community needs.”
Background:
The Victorville Water District (District) currently owns a Pacific Tek Towable Vacuum (Vactor No.42519) that is now sixteen (16) years old and at the end of its useful life. The vactor is used to perform a variety of duties to help assist District staff out in the field. One of the main uses of the vactor is to hydro-excavate (suction) water and debris to assist with the maintenance of the water distribution system, including the servicing of pipeline failures, fire hydrant and valve repairs. A hydro-excavation approach utilizing a vactor also provides less risk for damaging other utilities by suctioning water and debris rather 2 9
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than mechanical excavation associated with the use of a backhoe or other heavy digging equipment.
Discussion:
As vactor technology advances, products become more efficient. Vactor No. 42519 has a 400-gallon spoils tank, whereas the replacement vactor has an 800-gallon tank – double the capacity. Having a vactor with a larger debris tank will reduce the number of trips staff take to unload the tank; thus, increasing productivity and efficiency. Furthermore, the new vactor has added safety features, such as a built-in LED traffic director light bar and a 6- way extendable boom.
The 2022 vactor’s 49 HP Tier IV Final Diesel engine meets strict emission standards regulated by the California Air Resources Board (CARB). Older engines such as Vactor No. 42519 will be phased out of use, or designated for “low use”, which would eventually impact the feasibility for productive use. After the purchase of the replacement vactor is approved, Vactor No. 42519 would be commissioned as low-use and continue to be used by District staff for light housekeeping at water treatment plants and facilities.
District and Purchasing staff conducted a competitive bid solicitation using formal bidding procedures in accordance with Victorville Municipal Code (VMC) §2.28.100. On November 21, 2022, the Notice of Inviting Bids was emailed to potential bidders, posted on the City’s website and Ebidboard and was advertised in the newspaper. The following bidders responded:
Bidder Bid Amount Days Until Delivery
Haaker Equipment $131,571.01 175
RDO Equipment $136,150.22 290
Municipal Maintenance
Equipment
$138,740.48 205-235
Prior to comprehensive review of each bid, it appeared as though Municipal Maintenance Equipment (MME) was the lowest bidder at $125,740.48. However, after District staff reviewed their bid, they discovered that MME did not quote the required specifications.
The specifications requested an 800-gallon debris tank, but the only options given were a 600 or a 1,000-gallon tank. If the 1,000-gallon debris tank were to be selected, it would add an additional $13,000 to their bid, which would bring their new bid total to $138,740.48 (prior to any tax adjustment) making them the highest bidder.
As specified in VMC §2.28.100, the recommended purchase award herein has been evaluated in accordance with VMC §2.28.040 to determine Haaker Equipment Company as the “best value bidder” for the project.
Staff is recommending that the Victorville Water District Board of Directors approve the purchase of a replacement trailer mounted vacuum excavation machine, Project CC23- 064, for an amount not to exceed $131,571.01 from Haaker Equipment Company. 2 9
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Staff is available for any questions the Board may have.
Attachments: A. Bids Received
B. Municipal Code Section 2.28.100
C. Municipal Code Section 2.28.040
Attachment A
Bids Received
BID PROPOSAL / RECEIVING LOG
PROJECT # & NAME: CC23-064 NEW TRAILER MOUNTED VACUUM EXCAVATION MACHINE
DUE DATE & TIME: December 15, 2022 @ 2:30
BIDS OPENED BY: JENNIFER THOMPSON
APPARENT LOW BIDDER: MUNICIPAL MAINTENANCE EQUIPMENT
VENDOR
DATE
RECEIVED
EQUIPMENT COST
SHIPPING 8.75% TAX TOTAL BID
Municipal Maint. Equipment 12/15/22 $115,617.00 0 $10,116.49 $125,733.49
Haaker Equipment 12/13/22 117,766.45 $3,500.00 $10,304.56 $131,571.01
RDO Equipment 12/13/22 125,195.60 0 10,954.62 $136,150.22
*APPARENT LOW BIDDER – Dollar amounts shown are taken from the Bid Proposals received – these totals have not been verified for accurate addition, nor have the Proposals been reviewed for completeness or accuracy. The “Apparent Low Bidder” is not automatically awarded the contract.
Attachment B
Municipal Code §2.28.100
Created: 2022-02-07 11:08:35 [EST]
(Supp. No. 49, Update 1)