Visalia City Council
June 6, 2022

Visalia City Council
707 W. Acequia
Visalia, CA 93291
Visalia City Council
City Council
Meeting Agenda - Final
Mayor Steve Nelsen
Vice Mayor Brian Poochigian
Council Member Greg Collins
Council Member Brett Taylor
Council Member Liz Wynn
City Council Chambers7:00 PMMonday, June 6, 2022

ROLL CALL
CALL TO ORDER WORK SESSION - 4:30 PM

PUBLIC COMMENTS
Citizens are now invited to comment on issues within the jurisdiction of the Visalia City Council. The Council asks that you keep your comments concise and positive. Creative criticism, presented with appropriate courtesy, is welcome.

Each speaker will be allowed three minutes and a timer will notify you when your time is expired. Please begin your comments by stating and spelling your name and providing your city of residence.

WORK SESSION AND ACTION ITEMS (as described)

1. Presentation of the Tourism Marketing District Plan, consideration of the Resolution of Intention to renew the Visalia Tourism District in accordance with the Property and Business Improvement District Low of 1994, based on the submission of ballots representing more than a majority of the property owners based on their assessment value. The Resolution will trigger public notice of a public meeting on July 18, 2022, and a Public Hearing and consideration of a Resolution of Formation on August 1, 2022 which could result in a special assessment on local lodging businesses to fund sales and marketing programs designed to increase overnight visitation and room sales to assessed lodging businesses. (Resolution 2022-36 required)
22-0238

2. Receive, review, and discuss proposed new fees, increases and adjustment to the City’s Rates and Fees Schedule for Fiscal Year 2022-23.
22-0074
ADJOURN TO CLOSED SESSION - 6:00 PM (Or, immediately following Work Session)

1 City Council Meeting Agenda - Final June 6, 2022
CALL TO ORDER REGULAR SESSION - 7:00 PM

PLEDGE OF ALLEGIANCE

INVOCATION

ITEMS OF INTEREST

PUBLIC COMMENTS
This is the time for citizens to comment on subject matters that are not on the agenda and within the jurisdiction of the Visalia City Council. The Council asks that you keep your comments brief and positive. Creative criticism, presented with appropriate courtesy, is welcome.

This is also the time for citizens to request an item from the Consent Calendar be pulled for discussion purposes. Public comments related to all pulled Consent Calendar items and Regular or Public Hearing items listed on the agenda will be heard at the time that item is discussed or when the Public Hearing is opened.

Each speaker will be allowed three minutes, and a timer will notify you when your time is expired. Please begin your comments by stating and spelling your name and providing your city of residence.

CONSENT CALENDAR
Consent Calendar items are considered routine and will be enacted in one motion. There will be no separate discussion of these matters unless a request is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

1. Authorization to read ordinances by title only. 22-0150

2. Confirm the City Manager’s execution of a construction contract change order to excavate and repair various roadway subgrade sections along Avenue 288 due to subgrade “pumping” on a Time and Materials basis with a not to exceed amount of $300,000 for the Avenue 288 Reconstruction Project (4330-72000/CP0319-999) and appropriate $300,000 from the WWTP Fund (431).
22-0088

3. Authorize the City Manager to: 1) award the construction contract for RFB 21-22-35, FFY 19-20 Major Street Rehabilitation - Goshen Ave from Shirk Street to Mooney Blvd., to A.J. Excavation, Inc. of Fresno, CA. in the amount of $3,199,427; 2) authorize the transfer of $1.2M of Surface Transportation Block Grant (STBGP) funds from CP9225 Road Rehab to CP0490.
22-0138

2 City Council Meeting Agenda - Final June 6, 2022

4. Second reading and adoption of Ordinance No. 2022-08, authorizing an amendment of the current lease between the City of Visalia and the Federal Express Corporation for a multiyear agreement giving the potential to add ten (10) total years to the agreement, at the rate of eleven thousand three hundred seventy-nine dollars and fifty-one cents ($11,379.51) monthly plus annual CPI adjustments.
22-0192

5. Authorize the City Manager to award Request for Bids (RFB) 21-22-39, an annual contract for Boiler Maintenance at the Water Reclamation Facility (WRF) to ACCO Engineered Systems of Fresno, Ca. for a not to exceed annual amount of $ 30,000. This is a one ( 1) year contract that may be renewed for four ( 4) consecutive one ( 1) year periods upon mutually agreed upon terms.
22-0204

6. Authorize the City Manager to accept and appropriate $7,829,352 in funds awarded form the State of California Natural Resources Agency, Proposition 68 Statewide Park Development and
Community Revitalization Grant and appropriate $51,000 from the Parks Impact Fee Fund (211).
22-0209

7. Authorize the City Manager to award Request for Bids (RFB) 21-22-37, an annual contract for the supply of polymer for the Water Reclamation Facility (WRF) to Polydyne, Inc. of Riceboro, GA. for a not to exceed annual amount of $1,000,000.
22-0210

8. Authorize the City Manager to award the construction contract for RFB 21-22-47, Goshen Basin Project, to JT2, Inc. dba Todd Companies, of Visalia, CA in the amount of $1,975,000.00. (CIP 3010-72000/CP8334-999)
22-0211

9. Request authorization to record the final parcel map for Tentative Parcel Map No. 2021-01, located at 4204 South Demaree Street. (APN: 126-020-061)
22-0213

10. Authorize changes to terms and conditions of employment with all represented and unrepresented bargaining groups to advance the negotiated third-year salary increase to the second year resulting in employees receiving a total of an 8% increase in July 2022. 22-0218

11. Request authorization to file a Notice of Completion for “Caldwell & Demaree Garden Unit” subdivision containing 91 single-family residential lots located at the southwest corner of South Demaree Street and West Packwood Avenue.
22-0221

12. Approval of the Mural Application Request from Downtown Visalians for one temporary mural proposed on the south-facing temporary wall installed on the fire-damaged building located at 312 through 316 West Main Street.
22-0233

3 City Council Meeting Agenda - Final June 6, 2022

REGULAR ITEMS AND PUBLIC HEARINGS
Comments related to regular Items and Public Hearing Items are limited to three minutes per speaker, for a maximum of 30 minutes per item. The Mayor may reasonably limit or extend the public comment period to preserve the Council's interest in conducting efficient, orderly meetings.

1. Public Hearing and Adoption of Resolution 2022-13 which allows the City of Visalia to place Miscellaneous Special Assessments on the Tulare County secured property tax roll for Curb and Gutter, Sewer Connection, Deferred Parking in Lieu Fees, Deferred Impact Fees, Property and Business Improvement District, Northeast Improvement District, Landscape and Lighting Maintenance District, Landscape and Lighting Parks Construction, Open Space Assessment District, Village West Street Improvements, Orchard Walk East/West Utility Assessment District, Laura and Atwood Water Main Assessment District, Delinquent Utilities, Code Enforcement, and Weed & Lot Abatement.
22-0219

2. Conduct the first of two public hearings on the proposed Fiscal Years 2022/23 & 2023/24 Measure N budget.
22-0217

3. Authorize Changes to Terms and Conditions of Employment related to a salary increase consistent with that being provided to other employees.

Contract is by and between the City of Visalia and City Manager. 22-0222

CLOSED SESSION REPORT

4 City Council Meeting Agenda - Final June 6, 2022

1. For the purposes of reporting out, for the record, transactions that occurred as a result of Closed Session Real Property Negotiations:

Buyer: City of Visalia
Seller: Alice W. DeGroot-Grant, as Trustee of the Alice W.

DeGroot Revocable Trust, dated September 7, 2000, as amended and restated
APN: 077-200-006 (portion)
Purpose: Riggin Widening Project - Kelsey to Shirk
Price: $306,000.00
Closing Date: 5/17/2022
Project Manager: Diego Corvera
*****************************************
Buyer: City of Visalia
Seller: Rocky F. White, Trustee of the 2020 Rocky F. White Separate Property Trust, created under Instrument dated September 24, 2020.

APN: 077-650-001 (portion)
Purpose: Shirk Widening Project
Price: $105,200.00
Closing Date: 5/17/2022
Project Manager: Chantha Chap
******************************************
Buyer: City of Visalia
Seller: Scalia, Inc., a California corporation
APN: 077-780-003 (portion)
Purpose: Right of Way purchase
Brief Description: Shirk Widening Project
Price: $125,000.00
Closing Date: 5/23/2022
Project Manager: Chantha Chap
22-0231

ADJOURNMENT

1. Upcoming Visalia City Council Meetings:

Monday, June 13, 2022 at 6:00 PM: Special Joint Meeting with Visalia City Council and Visalia Planning Commission, Visalia Convention Center, 303 E. Acequia
Monday, June 20, 2022 at 7:00 PM: Regular Meeting, City Hall, 707 W. Acequia
22-0208

5 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0238 Agenda Date: 6/6/2022 Agenda #: 1.

Agenda Item Wording:

Presentation of the Tourism Marketing District Plan, consideration of the Resolution of Intention to renew the Visalia Tourism District in accordance with the Property and Business Improvement District Low of 1994, based on the submission of ballots representing more than a majority of the property owners based on their assessment value. The Resolution will trigger public notice of a public meeting on July 18, 2022, and a Public Hearing and consideration of a Resolution of Formation on August 1, 2022 which could result in a special assessment on local lodging businesses to fund sales and marketing programs designed to increase overnight visitation and room sales to assessed lodging businesses. (Resolution 2022-36 required)
Deadline for Action: 6/6/2022
Submitting Department: Administration
Contact Name and Phone Number: Leslie Caviglia, City Manager, 713-4317 Department Recommendation:

It is recommended that the Visalia City Council formally acknowledge receipt of the Visalia Tourism Marketing District (VTMD) management plan, confirm that public comment on the plan will be received at the City Council meetings of July 18, 2022, confirm that a public hearing will held on August 1, 2022, and adopt Resolution 2022-xx, a Resolution of Intention to establish/continue the VTMD. If implemented, the VTMD would continue the levy of assessments on lodging businesses within the City limits of Visalia with the funding to be utilized for marketing to bring visitors, meetings and conventions to the community. This process is being undertaken by the City of Visalia at the request of the current Visalia Tourism Marketing District which is comprised of representatives of the hotel industry. (Resolution attached)
Background Discussion:

The Visalia hotel industry is requesting to continue the Visalia Tourism Marketing District, an assessment district that is funded by a 2% assessment on hotel room nights on any Visalia property that has more than 20 rooms. Currently, Visalia has 15 hotels that meet this criteria:

The VTMD is a benefit assessment district designed to help fund sales & marketing and destination development programs for certain Visalia lodging businesses. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive demand for additional room nights to assessed lodging businesses. The renewed VTMD shall include all lodging businesses with twenty (20) rooms or more located within the boundaries of the City of Visalia (City), as shown on the map in the Management District Plan.

Lodging business owners decided to pursue renewal of the VTMD in order to continue a revenue source devoted to marketing Visalia as a tourist, meeting and event destination. If renewed, the Visalia City Council Printed on 6/3/2022Page 1 of 4
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6 File #: 22-0238 Agenda Date: 6/6/2022 Agenda #: 1.
source devoted to marketing Visalia as a tourist, meeting and event destination. If renewed, the VTMD would generate approximately $650,000 on an annual basis for promotion of travel and tourism specific to Visalia.

TOURISM MARKETING DISTRICTS
Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the market- based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TMD fund the TMD, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TMD.

TMD benefits:

Ø Funds cannot be diverted for other government programs; Ø They are customized to fit the needs of each destination; Ø They allow for a wide range of services; including: destination marketing, tourism promotion, and sales lead generation;
Ø They are designed, created and governed by those who will pay the assessment; and Ø They provide a stable funding source for tourism promotion.

In California, TMDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). This law allows for the creation of a special benefit assessment districts to raise funds within a specific geographic area. The key difference between TMDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TMD.

MANAGEMENT DISTRICT PLAN
The Management District Plan(Attached) includes the proposed boundary of the renewed VTMD, a service plan and budget, and a proposed means of governance. The VTMD shall include all lodging businesses, existing and in the future, with twenty (20) rooms or more located within the boundaries of the City of Visalia (City).

The renewed VTMD shall have a ten (10) year life, beginning January 1, 2023 through December 31, 2032. The renewed VTMD assessment will be implemented beginning January 1, 2023. Once per year beginning on the anniversary of VTMD renewal there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the VTMD.

The annual assessment rate is two percent (2%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by representatives or employees of a State or Federal government agency in the performance of their official duties as a representative or employee of the government agency paid for by the government agency.

The City shall be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the boundaries of the VTMD. The City shall take all reasonable Visalia City Council Printed on 6/3/2022Page 2 of 4
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efforts to collect the assessments from each assessed business.

VTMD RENEWAL PROCESS
June 6, 2022 RESOLUTION OF INTENTION HEARING
Upon the submission of a written petition, signed by the business owners in the renewed VTMD who will pay more than fifty percent (50%) of the assessments proposed to be levied, the Visalia City Council (Council) may initiate proceedings to renew the VTMD by the adoption of a resolution expressing its intention to renew the VTMD.

Petition Status: Petitions in favor of VTMD renewal were submitted representing more than 50% of the total VTMD assessment. This majority petition allows the Council to initiate proceedings for VTMD renewal at the June 6, 2022 meeting.

June 7, 2022 NOTICE
The 94 Law requires the City to mail written notice to the owners of all businesses proposed to be within the renewed VTMD. Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest VTMD renewal.

July 18, 2022 PUBLIC MEETING
Allow public testimony on the renewal of the VTMD and levy of assessments. No Council action required.

August 1, 2022 FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the renewed VTMD which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the Council.

If the Council, following the public hearing, decides to renew the VTMD, the Council shall adopt a resolution of formation.

Visalia City Council Printed on 6/3/2022Page 3 of 4
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Fiscal Impact:

The City will receive 1% of the assessment to cover the expenses of collecting and processing the assessment payments.

Prior Council Action: December, 2017 - Council processed the original VTMD Other: N/A
Alternatives: To not authorize the VTMD
Recommended Motion (and Alternative Motions if expected):

I move to accept the Visalia Tourism Marketing Plan, to confirm the published public meeting and public hearing opportunities, and to adopt Resolution 2022-xx, a Resolution of Intention to continue the VTMD .

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: 1. Powerpoint Presentation 2. Resolution 3. Management Plan 4, Process Timelines 5. Notice
Visalia City Council Printed on 6/3/2022Page 4 of 4
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9 Visalia Tourism Marketing
District Renewal
June 6, 2022
10 Tourism Marketing District Overview
• Currently 114 TMDs in California
• Raise over $300 million for tourism promotion
• 80 TMDs outside California (Colorado, Florida, Kansas, Louisiana, Montana, New Jersey, South Dakota, Texas, Washington)
• Visalia TMD established in 2017
• 5-year term ending December 31, 2022
11 How a TMD works…
Hotels pay an
assessment…
Collected by the
local government…
Managed by a
Non-Profit
Organization.

Characteristics
• Level playing field—no free riders
• Transparency
• Reliability
• Pass-through to guests
12 LOCATION All lodging businesses with 20 + rooms within the City of Visalia

SERVICES
Marketing & Sales and Destination Development programs to promote Visalia as tourist, meeting and event destination, thereby increasing demand for overnight visitation
ASSESSMENT RATE 2% of room rental revenue
ESTIMATED ANNUAL BUDGET $650,000
TERM 10 years
MANAGEMENT The Visalia Tourism Marketing District Corporation consisting solely of hotels paying the VTMD assessment
Renewal Visalia TMD Parameters
13 Renewal Steps
✓Hotel Outreach & Consensus Building
✓Draft new Management District Plan
✓Petition Drive – Over 50% based on assessment budget
• City Council Hearings
• Resolution of Intention – June 6
• Public Meeting – July 18
• Public Hearing – August 1
• Renewed district begins January 1, 2023
14 Q & A
15 Thank you!
Gina Reed
Senior Project Manager
Civitas
[email protected]
@portofinohotel
16 RESOLUTION NO. 2022-36

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VISALIA

DECLARING ITS INTENTION TO RENEW THE VISALIA TOURISM

MARKETING DISTRICT AND FIXING THE TIME AND PLACE

OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON

AND GIVING NOTICE THEREOF

WHEREAS, the City of Visalia (City) created the Visalia Tourism Marketing District (VTMD) in 2018 for a five (5) year term, and

WHEREAS, the current term of the VTMD ends on December 31, 2022; and

WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and

WHEREAS, the Visalia Tourism Marketing District Corporation, lodging business owners, and representatives from the City have met to consider the renewal of the VTMD; and

WHEREAS, the Visalia Tourism Marketing District Corporation has drafted a Management District Plan (Plan) which sets forth the proposed bounda ry of the VTMD, a service plan and budget, and a proposed means of governance; and

WHEREAS, lodging businesses who will pay more than fifty percent (50%) of the assessment under the VTMD have petitioned the City Council to renew the VTMD.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:

1. The recitals set forth herein are true and correct.

2. The City Council finds that lodging businesses that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the renewal of the VTMD. The City Council accepts the petitions and adopts this Resolution of Intention to renew the VTMD and to levy an assessment on certain lodging businesses within the VTMD boundaries in accordance with the Property and Business Improvement District Law of 1994.

3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code § 36622.

4. The City Council declares its intention to renew the VTMD and to levy and collect assessments on certain lodging businesses within the VTMD boundaries pursuant to the Property and Business Improvement District Law of 1994.

5. The VTMD shall include all lodging businesses , existing and in the future, with twenty (20) rooms or more located within the boundaries of the City of Visalia, as shown on the map attached as Exhibit A.
17 6. The name of the district shall be the Visalia Tourism Marketing District (VTMD).

7. The annual assessment rate is two percent (2%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collect ed on: stays of more than thirty (30) consecutive days or stays by representatives or employees of a State or Federal government agency in the performance of their official duties as a representative or employee of the government agency paid for by the government agency.

8. The assessments levied for the VTMD shall be applied toward sales promotion and marketing programs and destination development programs to market assessed lodging businesses in Visalia as tourist, meeting, and event destinations, as d escribed in the Plan. Funds remaining at the end of any year may be used in subsequent years in which VTMD assessments are levied as long as they are used consistent with the requirements of this resolution and the Plan.

9. The renewed VTMD shall have a ten (10) year life, beginning January 1, 2023 through December 31, 2032, unless renewed again pursuant to Streets and Highways Code § 36660.

10. Bonds shall not be issued.

11. The time and place for the public meeting to hear testimony on renewing the VTMD and levying assessments are set for July 18, 2022 , at 7:00 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at 707 W. Acequia Avenue, Visalia, CA 93291.

12. The time and place for the public hearing to renew the VTMD and the levy of assessments are set for August 1, 2022 , at 7:00 PM, or as soon thereafter as the matter may be heard, at the Council Chambers located at 707 W. Acequia Avenue, Visalia, CA 93291 . The City Clerk is directed to provide written notice to all lodging businesses subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code § 36623, no later than June 7, 2022.

13. At the public meeting and hearing the testimony of a ll interested persons for or against the renewal of the VTMD may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the boundaries of the VTMD that will pay more than fifty percent (50%) of the estimated total assessment of the entire VTMD, no further proceedings to renew the VTMD shall occur for a period of one year.

14. The complete Plan is on file with the City Clerk and may be reviewed upon request.

15. This resolution shall take effect immediately upon its adoption by the City Council.

18 I HEREBY CERTIFY that the foregoing Resolution of Intention was introduced and adopted at a regular meeting of the City Council on the ______ day of ____________________ 2022 by the following vote:

AYES: Council MEMBERS:

NOES: Council MEMBERS:

ABSENT: Council MEMBERS:

ABSTAIN: Council MEMBERS:

_______________________________

Mayor

ATTEST:

_________________________________
City Clerk

19 EXHIBIT A
VTMD Boundaries

20 2023-2032

VISALIA TOURISM MARKETING DISTRICT

MANAGEMENT DISTRICT PLAN

Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.

May 6, 2022
21 Contents
I. OVERVIEW ........................................................................................................................................ 3 II. BACKGROUND ................................................................................................................................ 4 III. BOUNDARY ....................................................................................................................................... 5 IV. ASSESSMENT BUDGET AND SERVICES ................................................................................ 6 A. Baseline Level of Services .................................................................................................. 6 B. Annual Service Plan ............................................................................................................ 6 C. Annual Budget .................................................................................................................... 8 D. California Constitutional Compliance ................................................................................ 9 E. Assessment ........................................................................................................................ 10 F. Penalties and Interest ........................................................................................................ 11 G. Time and Manner for Collecting Assessments ................................................................. 11

V. GOVERNANCE ............................................................................................................................... 12 A. Owners’ Association ......................................................................................................... 12 B. Brown Act and California Public Records Act Compliance ............................................ 12 C. Annual Report ................................................................................................................... 12

APPENDIX 1 – LAW .................................................................................................................................... 13 APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 24

Prepared by

(800)999-7781
www.civitasadvisors.com

22 VTMD Management District Plan 3
May 6, 2022

I. OVERVIEW

Developed by Visalia Toursim Marketing District Corporation (VTMDC) and local hoteliers , the Visalia Tourism Marketing District (VTMD) is a n assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The VTMD was created in 2018 for a five (5) year term. VTMDC and Visalia businesses now wish to renew the VTMD for a ten (10) year term.

Location: The VTMD includes all lodging businesses with twenty (20) rooms o r more located within the boundaries of the City of Visalia (City), as shown on the map in Section III.

Services: The VTMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales . Marketing an d sales promotions and destination development programs will increase demand for overnight tourism and market payors as tourist, meeting and event destination s, thereby increasing demand for room night sales.

Budget: The total VTMD annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $650,000. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

Cost: The a nnual assessment rate is two percent (2%) of gross short -term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by representatives or employees of a State or Federa l government agency in the performance of their official duties as a representative or employee of the government agency paid for by the government agency.

Collection: The City shall be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the boundaries of the VTMD. The City shall take all reasonable efforts to collect the assessments from each assessed business.

Duration: The renewed VTMD shall have a ten (10) year life, beginning January 1, 2023 through December 31, 2032. Once per year, beginning on the anniversary of VTMD renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on VTMD termination.

Management: The Visalia Tourism Marketing District Corporation shall continue to serve as the VTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.

23 VTMD Management District Plan 4
May 6, 2022
II. BACKGROUND

TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TMD. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.

California’s TMDs collectively
raise over $ 300 million
annually for local destination
marketing. With competitors
raising their budgets, and
increasing rivalry for visitor
dollars, it is important that
Visalia businesses continue to
invest in stable, lodging -
specific marketing programs.

TMDs utilize the efficiencies
of private sector operation in
the market -based promotion
of tourism districts. TMDs
allow assessed business
owners to organize their
efforts to increase demand for room night sales. Assessed business owners within the TMD pay an assessment and those funds are used to provide services that increase demand for room night sales.

In California, most TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TMDs:

• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. 1 2 4 6 9 12
19 25 29 32
38 46
61 64
75 95
101
109 114
0 20
40 60
80 100
120
Number of Districts Operating in California
24 VTMD Management District Plan 5
May 6, 2022
III. BOUNDARY

The renewed VTMD shall include all lodging businesses with twenty (20) rooms or more located within the boundarie s of the City of Visalia. The boundaries shall remain conterminous with the jurisdiction’s boundaries. Therefore, future lodging businesses annexed into the jurisdiction after the renewal of the VTMD shall automatically be included within the VTMD’s boundaries when a business license is issued to that lodging business.

Lodging business means: any structure or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location or other similar structure or portion thereof. Lodging business does not include a hospital room, medical clinic, convalescent home or home for the aged. Also, lodging business does not include a private home, vacation cabin or similar facility which is rented by a person who is not regularly engaged in the business of renting such facilities and does so only occasionally and incidentally to his or her own use thereof.

The boundary, as shown in the map below, currently includes sixteen (16) assessed businesses. A complete listing of assessed businesses within the VTMD can be found in Appendix 2.

25 VTMD Management District Plan 6
May 6, 2022
IV. ASSESSMENT BUDGET AND SERVICES

A. Baseline Level of Services
The “baseline level of services” is services, provided by the Convention and Visitor’s Bureau (Bureau) and funded by the City, in the amount at a minimum of the contracted amount in the previous year.

The VTMD fun ded services will supplement, not supplant, the City’s pre -existing funding to the Bureau. In the event the City reduces Bureau funding to a level below the baseline subsequent to the renewal of the VTMD, lodging businesses may gather petitions to disestablish the VTMD.

B. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the VTMD funds are sales and marketing and destination development programs available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by the VTMDC board. The table below illustrates the initial annual assessment budget allocations. The total initial assessment budget is $650,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the assessment budget shall remain the same. However, the City and the VTMDC board shall have the authority to adjust assessment budget allocations between the categories by no more than fifteen percent (15%) of the total assessment budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the VTMD, any and all assessment funds may be used for the costs of defending the VTMD.

Each assessment budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing Sales & Marketing,
$448,500 , 69%
Administration &
Operations, $97,500 ,
15%
Destination
Development,
$65,000 , 10%
Contingency/Reserve,
$32,500 , 5%
City Fee,
$6,500 , 1%
Initial Annual Assessment Budget - $650,000
26 VTMD Management District Plan 7
May 6, 2022
the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide t he services below will be determined by the VTMD board on an as- needed basis.

Sales and Marketing
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a ce ntral theme of promoting Visalia as a desirable place for overnight visits. The program will have the goal of increasing demand for overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Internet marke ting efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers targeted at potential visitors to drive overnight visitation and room sales to assessed businesses;
• Television and/or radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses;
• Attendance of trade shows, professional industry conferences, and affiliation events to promote assessed businesses;
• Sales blitzes for assessed businesses;
• Familiarization tours of assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, visitor guides, flyers and maps featuring assessed businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed businesses;
• Partnership with local and state tourism organizations to target key international markets to increase overnight visitation at assessed businesses;
• Development and implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to drive overnight visitation at assessed businesses;
• Development of Return on Investment (ROI) anal ysis on effectiveness of district funds to improve effectiveness and increase demand for overnight visitation at assessed businesses; • Development of a marketing plan to ensure district funds are strategically spent to mar ket assessed businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;
• Development and maintenance of a website designed to promote assessed businesses; • Education of hospitality staff on service and safety (related to alcohol and food) designed to create a visitor experience that will bring repeat visits to assessed businesses; • Education of assessed business management and the Owners’ Association on marketing strategies best suited to meet assessed businesses’ needs; • Implementation, operation, and/or development of a Visitor Center; and • Community organization grants to promote events and activities that target potential visitors to drive overnight visitation and room sales to assessed businesses.

Destination Development
The Destination Development projects may include:
• Comprehensive and integrated wayfinding signage system; 27 VTMD Management District Plan 8
May 6, 2022
• Contributions towards funding a transportation program connecting assessed businesses with downtown, points of interest and other attractions, to increase room night sales; • Art and cultural projects, to attract overnight visitors; • Gateway enhancements, to attract overnight visitors;
• Enhancements to environmental experiences which attract overnight visitors; • Sustainability programs that offset impacts of tourist visitation within the destination; • Development of and/or improvements to visitor points of interest, such as hiking trails and parks, that attract overnight visitors;
• Enhancements to environmental experiences, which attract overnight visitors, that expose visitors to the value of the vital ecosystems; and
• Infrastructure improvements that enhance the destination’s competitive position to attract desirable special events year-round and attract overnight visitors.

Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and othe r general administrative costs such as insurance, legal, and accounting fees.

City Administration Fee
The City of Visalia shall be paid a fee equal to one percent (1%) of the amount of assessment collected to cover its costs of collection and administration.

Contingency/Reserve
The assessment budget includes a contingency line item to account for unforeseen circumstances, such as higher than anticipated costs or lower than anticipated collections . If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of Directors of the Owners’ Association. Contingency/reserve fund s may be spent on District programs or administrative and renewal costs in such proportions as determined by the Owners’ Association. The reserve fund may be used for the costs of renewing the VTMD.

C. Annual Budget
The total ten (10) year improvement and service plan budget is projected at approximately $ 650,000 annually, or $7,451,521.55 through 2032. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

The table below demonstrates the maximum cost of improvements and services over the VTMD’s ten (10) year term. A three percent (3%) annual increase in the cost of improvements and services is projected to account for anticipated increases in gross short term room rental revenue as a result of VTMD efforts.

Year Marketing
& Sales
Destination
Development
Admin Contingency
/Reserve
City Admin
Fee
Total
2023 $448,500.00 $65,000.00 $97,500.00 $32,500.00 $6,500.00 $ 650,000.00 2024 $461,955.00 $66,950.00 $100,425.00 $33,475.00 $6,695.00 $ 669,500.00 2025 $475,813.65 $68,958.50 $103,437.75 $34,479.25 $6,895.85 $ 689,585.00 28 VTMD Management District Plan 9
May 6, 2022
2026 $490,088.06 $71,027.26 $106,540.88 $35,513.63 $7,102.73 $ 710,272.55 2027 $504,790.70 $73,158.07 $109,737.11 $36,579.04 $7,315.81 $ 731,580.73 2028 $519,934.42 $75,352.81 $113,029.22 $37,676.41 $7,535.28 $ 753,528.15 2029 $535,532.45 $77,613.40 $116,420.10 $38,806.70 $7,761.34 $ 776,133.99 2030 $551,598.43 $79,941.80 $119,912.70 $39,970.90 $7,994.18 $ 799,418.01 2031 $568,146.38 $82,340.06 $123,510.08 $41,170.03 $8,234.01 $ 823,400.55 2032 $585,190.77 $84,810.26 $127,215.39 $42,405.13 $8,481.03 $ 848,102.57 Total $5,141,549.87 $745,152.16 $1,117,728.23 $ 372,576.08 $ 74,515.22 $7,451,521.55

D. California Constitutional Compliance
The VTMD assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property. 1 Rather, the VTMD assessment is a business-based assessment, and is subject to Proposition 26.

Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the VTMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expe nded on, “ a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Pla n are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the VTMD. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed businesses within the boundaries of the VTMD, and are narrowly tailored. VTMD funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees.

Assessment funds shall not be used to feature non -assessed businesses in VTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses.

The assessment imposed by this VTMD is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed businesses will be provided only to businesses paying the VTMD assessment, with marketing and sales and destination development programs promoting businesses paying the VTMD assessment. The marketing and sales and destination development programs will be designed to increase room night sales at each assessed businesses. Because they are necessary to provide the marketing and sales and destination development programs that sp ecifically benefit the assessed businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed businesses.

1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
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Although the VTMD, in providing specific benefits to payors, may produce incidental benefits to non- paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product .”4 The legislature has recognized that marketing and promotions services like those to be provided by the VTMD are government services within the meaning of Proposition 26 5. Further, the legislature has determined that “a specific government service is not excluded from classification a s a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
VTMD services will be imple mented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VTMD, and reports submitted on an annual basis to the City. Only assessed businesses will be featured in marketing materials, receive sales leads generated from VTMD-funded activities, be featured in advertising campaigns, and benefit from other VTMD-funded services. Non- assessed businesses will not receive these, nor any other, VTMD-funded services and benefits.

The VTMD-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non -assessed businesses. If non -assessed businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-VTMD funds. VTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

E. Assessment
The annual assessment rate is two percent (2%) of gross short term room rental revenue. Based on the benefit received, assess ments will not be collected on stays of more tha n thirty (30) consecutive days or stays by representatives or employees of a State or Federal government agency in the performance of their official duties as a representative or employee of the government ag ency paid for by the government agency.

The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in an assessed business valued in money, whether to be received in money, goo ds, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including bu t not limited to transient occupancy taxes.

3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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The assessment is levied upon and a direct obligation of the assessed business. However, the assessed business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the VTMD assessment is identified separately it shall be disclosed as the “VTMD Assessment.” As an alternative, the disclosure may include the amount of the VTMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, includin g calculation of transient occupancy taxes.

Bonds shall not be issued.

F. Penalties and Interest
The VTMD shall reimburse the City of Visalia for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent VTMD assessment are sought to be recovered in the same collection action by the City, the VTMD shall bear its pro rata share of such collection costs.

Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency: Any assessed business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in additional to the amount of the assessment.

2. Continued Delinquency: Any assessed business that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first bec ame delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.

3. Fraud: If the City determines that the nonpayment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in paragraphs 1 and 2 above.

4. Interest: In addition to the penalties imposed, any assessed business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent (0.5%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.

5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid.

G. Time and Manner for Collecting Assessments
The VTMD assessment shall be implemented beginning January 1, 2023 and will continue for ten (10) years through December 31, 2032. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business. The City shall take all reasonable efforts to collect the assessments from each assessed business. The City shall forward the assessments collected to the Owners’ Association.

31 VTMD Management District Plan 12
May 6, 2022

V. GOVERNANCE

A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the VTMD as defined in Streets and Highways Code §36612. The City Council has determined that the Visalia Tourism Marketing District Corporation (VTMDC) shall continue to serve as the Owners’ Association for the VTMD. The entirety of the VTMDC Board of Directors shall be representatives of businesses paying the VTMD assessment.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54 950 et seq.). Thus, meetings of the VTMDC board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owner s’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
The VTMD shall present an annual report at th e end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in suffi cient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

32 VTMD Management District Plan 13
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APPENDIX 1 – LAW

*** THIS DOCUMENT IS CURRENT THROUGH THE 2021 SUPPLEMENT *** (ALL 2020 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994

CHAPTER 1. General Provisions

ARTICLE 1. Declarations

36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”

36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the 33 VTMD Management District Plan 14
May 6, 2022
incidental or collateral effects of those special benefits are inherently part of those special benefits.

The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.

36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.

36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).

36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.

36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions

36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property i n the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitatio n, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district.

36606.5. “Assessment”

“Assessment” means a levy for the purpose o f acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.

36607. “Business”

34 VTMD Management District Plan 15
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“Business” means all types of businesses and includes financial institutions and professions.

36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California.

36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.

36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.

36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.

36610. “Improvement”

“Improvement” means the acquisition, construction, installa tion, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.

36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622.

36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be consider ed to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”

“Property” means real property situated within a district.

35 VTMD Management District Plan 16
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36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.

36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property.

36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment.

36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.

36615.5. “Special benefit”

“Special benefit” means, for purposes of a property -based district, a particular and distinct benefit over and above general bene fits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.

36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law

36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment

36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter.

36620.5. Requirement of consent of city council

A county may not form a district within the te rritorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board 36 VTMD Management District Plan 17
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of supervisors of that county. A city may not form a dist rict within the territorial jurisdiction of another city without the consent of the city council of the other city.

36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a writte n petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.

The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall in clude a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information spec ifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activ ities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the impr ovements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consis tent with the requirements of Section 36623.

36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If t he assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, a nd activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
37 VTMD Management District Plan 18
May 6, 2022
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount propos ed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwi thstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property -based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property -based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property -based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property -based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council.

36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business a ssessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writ ing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 38 VTMD Management District Plan 19
May 6, 2022
50 percent or more of the assessments pr oposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a perio d of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either th e property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.

36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may ado pt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the pro posed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing co ncerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property -based district, that property within the district will receive a special benefit.
(8) In a property -based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
39 VTMD Management District Plan 20
May 6, 2022

36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levie d on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assess ment on each category of business, or on each category of business within each zone.

36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.

36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district.

36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments

36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes o f determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
40 VTMD Management District Plan 21
May 6, 2022
(c) Properties zoned solely for residential use, or tha t are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.

36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed.

36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter.

36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Sect ion 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing

36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing w ith Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
41 VTMD Management District Plan 22
May 6, 2022
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so woul d interfere with the timely retirement of the debt.

CHAPTER 4. Governance

36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district o r any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.

36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, b ut is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal

36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues deriv ed from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues 42 VTMD Management District Plan 23
May 6, 2022
shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment

36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30 -day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied w ithin the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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APPENDIX 2 – ASSESSED BUSINESSES

Business Name Business Address
America's Best Value Inn 623 W. Main St. Visalia, CA 93291 Best Western 9300 W. Airport Dr. Visalia, CA 93277
Comfort Suites Downtown 210 E. Acequia Ave. Visalia, CA 93291 Fairfield by Marriott 140 S. Akers St. Visalia, CA 93291 Hampton Inn & Suites 4747 W. Noble Ave. Visalia, CA 93277 Hilton Garden Inn (Opening in 2022) Visalia, CA
Holiday Inn Express 5625 W. Cypress Ave, Visalia CA 93277 La Quinta Inn & Suites 5438 W. Cypress Visalia, CA 93277 Lamp Liter Inn 3300 W. Mineral King Visalia, CA 93291
Majestic Inn (formerly the Marco Polo) 4545 West Noble, Visalia, CA 93277 Motel 6 4645 W. Noble Ave Visalia, CA 93277
Residence Inn 205 N. Plaza Drive, Visalia, CA 93291
Super 8 Visalia 4801 West Noble Ave, Visalia, CA 93277
The Darling Hotel 210 N. Court Street, Visalia, CA 93291 Visalia Marriott at the Convention Center 300 S. Court St. Visalia, CA 93291 Wyndham Visalia 9000 W. Airport Dr. Visalia, CA 93277

44 PETITION TO THE CITY OF VISALIA

TO RENEW THE VISALIA TOURISM MARKETING DISTRICT

We petition you to initiate proceedings to renew a Tourism Marketing District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Lodging Establishment & Address

Business Owner

The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.

Owner Representative/Owner Name (printed) Title

Owner/Representative Signature Date

A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Nellie Freeborn
Visit Visalia
112 E. Main Street
Visalia, CA 93291
(559) 334-0141
45 EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY

Location: The Visalia Tourism Marketing District (VTMD) includes all lodging businesses with twenty (20) rooms or more located within the boundaries of the City of Visalia (City), as sho wn on the map below.

Services: The VTMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing and sales promotions and destination development programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.

Budget: The total VTMD annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $650,000. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

Cost: The annual assessment rate is two percent (2%) of gross short-term room rental revenue.

Based on the benefit received, assessments will not be colle cted on: stays of more than thirty (30) consecutive days or stays by representatives or employees of a State or Federal government agency in the performance of their official duties as a representative or employee of the government agency paid for by the government agency.

Collection: The City shall be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the boundaries of the VTMD. The City shall take all r easonable efforts to collect the assessments from each assessed business.

Duration: The renewed VTMD shall have a ten (10) year life, beginning January 1, 2023 through December 31, 2032. Once per year, beginning on the anniversary of VTMD renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on VTMD termination.

Management: The Visalia Tourism Marketing District Corporation shall continue to serve as the VTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with the Management District Plan, and must provide annual reports to the City Council.

46 EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY

Boundary Map
47 Visalia Tourism Marketing District
Renewal Timeline
May 11, 2022

Action Date
Initiate project September 15, 2021
Stakeholder Outreach & Consensus Building September – November 2021 Develop initial draft Management District Plan (MDP) November 2021 Submit draft MDP and Petition to City; ongoing review November 2021 Final MDP and Petition approved by City May 2022
Petition Drive May 2022
Submit Petitions totaling over 50% of assessment to City May 27, 2022 City Council – Resolution of Intention (ROI)
• Resolution of Intention to Renew District (Can be on Consent Calendar) June 6, 2022 Mail
• Notice of Public Meeting/Hearing - Should be mailed 1 day after ROI is adopted.

Must be mailed 45 days before public hearing. Clerk certification of mailing is required.

June 7, 2022
City Council – Public Meeting
• Public Meeting – No action required - Must be held at least 10 days after Notice of Public Meeting/Hearing is mailed and at least 7 days before Public Hearing is held.

July 18, 2022
City Council – Public Hearing
• Public Hearing & Adopt Resolution of Formation - Must be held at least 45 days after Notice is mailed.

August 1, 2022
Renewed District begins collecting assessment January 1, 2023

Visalia City Council meets the first and third Monday of each month at 7 p.m. for the regular session. Meetings are normally held in the Council Chambers at City Hall, located at 707 W. Acequia, Visalia, CA 93291 48 NOTICE OF PUBLIC MEETING AND PUBLIC HEARING CONCERNING THE RENEWAL OF THE VISALIA

TOURISM MARKETING DISTRICT AND LEVY OF AN ASSESSMENT ON CERTAIN LODGING BUSINESSES

WITHIN THE DISTRICT

NOTICE IS HEREBY GIVEN that on June 6, 2022 , the City Council (the “Council”) of the City of Visalia (the “ City”) adopted a Resolution of Intention to renew the Visalia Tourism Marketing District (the “VTMD”) and to levy an assessment on certain lodging businesses within the VTMD as set forth in the attached Resolution of Intention.

NOTICE IS HEREBY FURTHER GIVEN that at 7:00 PM on July 18, 2022 , at the City of Visalia Council Chambers, 707 W. Acequia Avenue, Visalia, CA 93291 , a public meeting shall be held pursuant to Government Code section 54954.6 to allow pub lic testimony regarding the renewal of the VTMD and the levy of assessments therein as set forth in the enclosed Resolution of Intention and pursuant to Government Code section 54954.6.

NOTICE IS HEREBY FURTHER GIVEN that at 7:00 PM on August 1, 2022 , at the City of Visalia Council Chambers, 707 W. Acequia Avenue, Visalia, CA 93291 , has been set as the time and place for a public hearing at which time the Council proposes to renew the VTMD and to levy the proposed assessment as set forth in the Resolution of Intention.

Location: The VTMD includes all lodging businesses with twenty (20) rooms or more located within the boundaries of the City of Visalia ( “City”), as shown on the map in the Management District Plan (“Plan”).

Services: The VTMD is desi gned to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing and sales promotions and destination development programs will increase demand for overnight tourism and market payors as tourist, meet ing and event destinations, thereby increasing demand for room night sales.

Budget: The total VTMD annual assessment budget for the initial year of its ten (10) year operation is anticipated to be approximately $650,000. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

Cost: The annual assessment rate is two percent (2%) of gross short -term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days or stays by representatives or employees of a State or Federal government agency in the performance of their official duties as a representative or employee of the government agency paid for by the government agency.

Collection: The City shall be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the 49 boundaries of the VTMD. The City shall take all reasonable eff orts to collect the assessments from each assessed business.

Duration: The renewed VTMD shall have a ten (10) year life, beginning January 1, 2023 through December 31, 2032. Once per year, beginning on the anniversary of VTMD renewal, there is a thirty ( 30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on VTMD termination.

Management: The Visalia Tourism Marketing District Corporation shall continue to serve as the VTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with the Plan, and must provide annual reports to the City Council.

Protest: Any owner of a lodging business within the renewed VTMD that will be subject to the assessment may protest the renewal of the VTMD. If written protests are received from the owners of lodging businesses in the VTMD who represent 50 percent (50%) or more of the estimated annual assessments to be levied, the VTMD shall not be renewed and the assessment shall not be imposed.

You may mail a written protest to:

Office of the City Clerk
City of Visalia
220 N. Santa Fe St.

Visalia, CA 93292

You may also appear at the public meeting or hearing and submit a written protest at that time.

Information: Should you desire additional information about this VTMD or assessment contact:

Suzanne Bianco
112 E Main St
Visalia, CA 93291
(559) 334-0141

Dated: ________________________________ __________________________________________ City Clerk

50 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0074 Agenda Date: 6/6/2022 Agenda #: 2.

Agenda Item Wording:

Receive, review, and discuss proposed new fees, increases and adjustment to the City’s Rates and Fees Schedule for Fiscal Year 2022-23.

Deadline for Action: 6/6/2022
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Kari Williams 559-713-4298 Department Recommendation:

That the City Council receive, review, and discuss the proposed new fees, increases, and adjustments to the City’s Rates and Fees Schedule for Fiscal Year 2022-23.

Background Discussion:

Annually all Fees, except Impact Fees and Business Tax, are recommended for annual cost of living adjustments for the next fiscal year. City ordinances limit annual Impact Fee and Business Tax adjustments to specific CPI indices and are adjusted accordingly. Annual inflationary adjustments help Departments cover costs and lessen the burden on the General Fund so that the fund will be available to cover critical operations including public safety.

There will be two meetings to review the Rates and Fees for Fiscal Year 2022-23. The first meeting, on June 6, is for presentation and discussion only - to receive, review, and discuss the proposed changes to the City’s Rates and Fees Schedule. The second meeting, on June 20, is to conduct a public hearing and take action to adopt the City’sRates and Fees Schedule for Fiscal Year 2022-23. If approved, the effective date is July 1 for all rates and fees, except for Impact Fees which require a 60-day notice, thus making the effective date for these fees August 20, 2022.

Fee increases are mainly based on established indexes, such as the Consumer Price Index (CPI). The City uses the California Consumer Price Index for All Urban Consumers (CCPI-U) as the basis for most fee adjustments. Impact Fees are required by City ordinance to use a building industry CPI index known as the Engineering News Record Construction Cost Index (ENRCCI). In a like manner, City ordinance dictates that the Business Tax will be adjusted by the CPI using the US City Average for all items (USCPI-U) using the average for the last 3 years. Both Impact Fees and Business Taxes are adjusted annually as directed by ordinance. Each Index and the fee effective date are listed in Table 1: Proposed Index Period Changes.

CPI Rate FY
Time Effective 22-23
Period Date Rate Fee
C.C.P.I. - U.

Jan. - Dec. 2021 Jul 1, 2022 4.23% All Other Fees
E.N.R.C.C.I.

May 2021 - Apr. 2022 Aug 20, 2022 13.82% Impact Fees
U.S.C.P.I. - U.

Jan. - Dec. 2021 4.70%
Jan. - Dec. 2020 1.23%
Jan. - Dec. 2019 1.81%
Three Year Average Jul 1, 2022 2.58% Business Tax Fees
Table I
Proposed Index Period Changes
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CPI Rate FY
Time Effective 22-23
Period Date Rate Fee
C.C.P.I. - U.

Jan. - Dec. 2021 Jul 1, 2022 4.23% All Other Fees
E.N.R.C.C.I.

May 2021 - Apr. 2022 Aug 20, 2022 13.82% Impact Fees
U.S.C.P.I. - U.

Jan. - Dec. 2021 4.70%
Jan. - Dec. 2020 1.23%
Jan. - Dec. 2019 1.81%
Three Year Average Jul 1, 2022 2.58% Business Tax Fees
Table I
Proposed Index Period Changes
This report explains in detail the following fee changes:
• New Fees
• Fee Increases Exceeding CPI
• Adjusted Fees
• Existing Fees - Previously Not Listed in the Document • Deleted Fees
All existing rates and fees that are only increasing by CPI, ENRCCI (Impact Fees), and USCPI-U (Business Taxes) are not listed in the staff report. These rates and fees are listed in the Proposed Rates and Fees Document FY 22-23 which is attached. For comparison purposes, the document includes the current year’s rates and fees.

Throughout the Rates and Fees Document there are times where some or all of the departments’Rates and Fees are not increased for specific circumstances and reasons. The following are instances of when rates and fees might not be increased. • Ordinance and Fees set by other Governmental Agencies - Some fees may require an ordinance change in order to change them as in the case of Code Enforcement Fees. Some fees may be set by other governmental agencies and therefore may not be changed as in the case of some Police Fees and the Passport Application Fee (located in General Government and Finance Fees). • Legal Requirements (Prop. 218 Fees) - Some fees may require the Department to go through a Prop. 218 notification process before they can be increased as in the case of Solid Waste and Sewer Fees. • Contracted - Some fees are based on contracted services charged at contracted prices and therefore, are not being increased as in the case of Street Improvement Fees, Banking Fees (return check charge, stop payments), Convention Center Fees (contracted services, catering), and Transit Advertising Fees. • Minor Administrative Fees - Some fees are for minor administrative tasks that are minimal and/or rarely occur and are therefore not being increased as in the case of copy fees, payroll fees, and report fees.
• Department - Some fees are not being increased due the department s choice. For instance, a department may want to remain competitive within their industry so an increase in fees may be detrimental to their business as in the case of Animal Control Service Fees (licensing, trap rental, impound fees, etc.), Convention Center Fees (equipment rental, parking lot rental, wifi services, etc.), and Airport Fees Visalia City Council Printed on 6/2/2022Page 2 of 11
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(overnight parking, landing fees, gate card replacement, hangar waiting list deposit, and fuel flowage fees).

In addition, a department may be holding off on increasing or changing fees and the basis on which their fees are determined. The Parks and Recreation Department and the Building Safety Division were two such departments that felt they needed such review and therefore have no changes in fees this year.

For Parks and Recreation, staff is currently taking a closer look at the fee structure, analyzing the current fees, and reworking the detail and justification. Staff will bring back to Council the updated fees and Policy and Procedures within the next two months.

For a sixth consecutive year, the Building Safety division has reviewed and completed an analysis of its fees and is not recommending a fee increase for permit fees for FY 22-23 as the Building Safety Division continues to maintain a positive fund balance. The Building Safety division has recently hired a Building Official that will oversee the division. With the hire of a new Building Official, the division will now look to issue an RFP/RFQ for a consultant to conduct a comprehensive fee study. The comprehensive fee study will evaluate the current fee structure and determine if adjustments to the rates and fees are necessary. Any study will be done in coordination with the development community to determine which permit fees can be consolidated, removed, edited, etc..

NEW FEES
The following is a listing of proposed new fees beginning in the upcoming fiscal year, effective July 1, 2022. Note: The page numbers referenced for each fee refer to the page number in the Proposed Rates & Fees Document, which is attached.

Fire - (General Fund)
A new fee for Fire Truck/100 Foot Aerial Ladder (page 28) has been added. This fee is in addition to the Fire Truck/75 Foot Aerial Ladder already listed in the document and taken directly from the FEMA schedule.

FY 21-22 FY 22-23
Fire Truck/100 Foot Aerial Ladder (FEMA Schedule) Per Hour N/A $180.49 Police - (General Fund)
New fees for Retail Firearms Dealer’sLicense Application and Application Renewal (page 31) have been added. These two new fees essentially replace the gun dealer permit fee. The application is mandatory for anyone that chooses to operate a retail firearms business in the City of Visalia. The purpose of the Retail Firearms Dealers License Application is to facilitate the Police Department’sreview to ensure all applicants satisfy the requirements of the City’s Zoning Code and provides the Visalia Police Department with the necessary information to identify and address any concerns with the proposed business. The application gathers necessary information from the applicant and their employees and also outlines the forms required from state and federal agencies to ensure that all regulatory entities are involved in the process. Once approved, the permit is valid one year from the date of issuance. A business then must renew annually in order to continue to conduct business. Both fees reflect the direct rate (salary and benefits) and the indirect rate (overhead costs) of 20%.

Retail Firearms Dealer's FY 21-22 FY 22-23
Licence Application Per Permit N/A $281.00
Renewal Application Per Permit N/A $152.00
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FEE INCREASES EXCEEDING CPI
Business Tax - (General Fund)
The annual increases, authorized by City ordinances, are based on the three-year average of the Consumer Price Index for All Urban Consumers (CPI-U) - U.S. City Average which is 2.58%. The following Business Tax Fees (pages 14-16) have been increased above the CPI due to rounding to the nearest dollar for cash handling purposes. The rate increases range from 2.61% to 2.82% and actual dollar increases range from $2.00 to $16.00.

FY 21-22 FY 22-23
Fixed Businesses/Services Per entity, max annual business tax $422.00 $433.00 Public Dance Per Day $71.00 $73.00
Cultural Performance Per Day $71.00 $73.00
Cultural Performance Per Month $606.00 $622.00
Special Event - Including Carnivals and Circuses Per Day $297.00 $305.00 Temporary or Itinerant Businesses Per Month $297.00 $305.00 Distribution of printed matter Per Month $297.00 $305.00 Enterprise Fees - Convention Center
The following Convention Center fees (pages 56-60) have been increased above the CPI due to rounding to the nearest dollar for cash handling purposes. The rate increases range from 4.35% to 6.25% and actual dollar increases range from $0.25 to $5.00.

FACILITY RENTAL: FY 21-22 FY 22-23
San Joaquin Ballroom A, B, C or D move in/out & turnaround reset Per Day $115.00 $120.00 Sequoia A or B or Sierra B move in/out & turnaround reset Per Day $115.00 $120.00 Mineral King / Kaweah A or B or Sierra A move in/out & turnaround Per Day $85.00 $90.00 EQUIPMENT RENTAL:

Linen - Tablecloth Each/Use $4.00 $4.25
Stage Barricades Each (4 ft) $23.00 $24.00
Enterprise Fees - Airport
The Heavy Appliance Electricity Surcharge (page 47) has been increased above the CPI due to the fee not being increased the last five years. In order to bring the fee current Staff is proposing to increase the fee by $7.00. This increase includes not only this year’sCPI increase but also the missed prior five years of CPI’s increases, which is a combined total of 17.77%. This fee is rounded to the nearest dollar for cash handling purposes.

FY 21-22 FY 22-23
Heavy Appliance Electricity Surcharge Per Month $35.00 $42.00

ADJUSTED FEES
The following is a listing of proposed fees where fees have been adjusted by less than the annual CPI, have been reduced or increased to better reflect service and cost, or have increased or decreased based on the City’s historical MOU changes.

Administration - General Government and Finance (General Fund) The fee for Passport Application - Overnight Postage Fee (page 11) is a fee that is set by the U.S.

Department of State and was increased January 10, 2022. Customers who wish to rush delivery for their passport application may select the overnight postage. This fee is set by the U.S. Department of State to cover costs only and is based on the customer choice. This fee is not retained by the City but is a pass- Visalia City Council Printed on 6/2/2022Page 4 of 11
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cover costs only and is based on the customer choice. This fee is not retained by the City but is a pass- through fee. Currently the City has this service suspended.

FY 21-22 FY 22-23
Passport Application - Overnight Postage Fee Per Request $17.56 $18.32 Community Development - Planning (General Fund)
The following Home Occupation Permit Fees (page 19) have been decreased from $34.00 to $33.00 and from $17.00 to $16.00 due to a reduction in the indirect rate (overhead costs) calculation. These fees are based on actual cost of salary & benefits and overhead.

FY 21-22 FY 22-23
Home Occupation Permit Home Occupation Permit-new $34.00 $33.00 Home Occupation Permit-change of location $17.00 $16.00 Public Works - Grading Plan Check Fees (General Fund)
The following Grading Permit Fees (page 22) have been adjusted to realign the fees to better reflect more accurately the amount of staff time needed to perform grading inspections. Fee for 1 to 100 cubic yards is being increased from $77.00 to $81.00 using the fee for an Engineer Construction Inspector (rounding to the dollar) as included in the Engineering Rates and Fees shown under Special Services. As determined in fiscal year 2021-22, staff has estimated it takes a minimum of 1-hour for an Engineer Construction Inspector to perform an inspection ranging from 1 to 100 cubic yards.

The incremental amount charged for a permit ranging from 101 to 1,000 cubic yards increased to reflect the actual cost of additional staff time to perform the inspection. The incremental amount charged for each additional 100 cubic yards increased from $19.00 to $20.00. The $20.00 charge for each additional 100 cubic yards is calculated based on that it takes approximately 15 minutes of inspection time for each additional 100 cubic yards.

The incremental amount charged for each additional 1,000 cubic yards for a permit ranging from 1,001 to 10,000 cubic yards increased from $26.00 to $27.00. The $27.00 was calculated based on an inspection rate of 1.25 hours per day required for a typical grading production rate of 2,000 cubic yards per day equating to an estimated 5-day inspection period for a grading permit consisting of 10,000 cubic yards.

The incremental amount charged for each additional 10,000 cubic yards for a permit ranging from 10,001 to 100,000 cubic yards and for 100,001or more cubic yards increased from $203.00 to $214.00. The $214.00 was calculated based on an inspection rate of 1.5 hours per day required for a grading production rate of 5,000 cubic yards per day equating to an estimated 20-working days inspection period for a grading permit of 100,000 cubic yards. The incremental charge thereafter for each additional 10,000 cubic yards will be $214.00.

Grading Permit Fees: FY 21-22 FY 22-23
1 to 100 cubic yards (0.76 to 76.5 m3) for the first 1-100 cubic yards (76.5 m3) $77.00 $81.00 101 to 1,000 cubic yards (77.2 to 764.6 m3) for the first 100 cubic yards (76.5 m3), plus $20.00 for $77.00 $81.00 each additional 100 cubic yards (76.5 m3) or fraction thereof. 1,001 to 10,000 cubic yards (765.3 to 7645.5 m3) for the first 1,000 cubic yards (764.6 m3), plus $27.00 for $248.00 $261.00 each additional 1,000 cubic yards (764.6 m3) or fraction thereof. 10,001 to 100,000 cubic yards (7646.3 to 76 455 m3) for the first 10,000 cubic yards (7645.5 m3), plus $214.00 for $482.00 $504.00 each additional 10,000 cubic yards (7645.5 m3) or fraction thereof. 100,001 cubic yards (76 456 m3) or more for the first 100,000 cubic yards (76 455 m3), plus $214.00 for $2,309.00 $2,430.00 each additional 10,000 cubic yards (7645.5 m3) or fraction thereof.

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Enterprise Fees - Animal Services (Animal Control Fund) The Rabies, DHPP/FVRCP, and Bordatella Vaccinations (page 12) have been adjusted to better reflect the cost of service. There has been an increase in pricing from the vendor suppling the vaccinations to the City.

FY 21-22 FY 22-23
Rabies Vaccination $15.00 $16.00
DHPP/FVRCP Vaccination $15.00 $16.00
Bordatella Vaccination $15.00 $16.00
Enterprise Fees - Building Safety Fund
The fees for plan check and inspection of New Commercial-Shell and Shell with Interior Improvements (page 50) have been adjusted to create a proportionate scaling fee reflective to cost of service. Scaling for plan check over 100,001 square feet decreased from $0.05 per square foot to $0.03 per square foot for new commercial-shell and $0.12 per square foot to $0.07 per square foot for new commercial-shell with interior improvements. Scaling for inspection fees over 100,001 square feet decreased from $0.10 per square foot to $0.05 per square feet for new commercial-shell. The fees for fire plan check and inspection of Fire & Hood Suppression/Alarm System/Detection System (page 50) has been adjusted to create a proportionate scaling fee reflective to cost of service. Scaling for fire plan check, and inspection fees over 100,001 square feet decreased from $0.02 per square foot to $0.01 per square foot and inspection fees decreased from $0.05 per square foot to $0.04 per square foot.

FY 21-22 FY 22-23
New Commercial - Shell (includes corporate airport hangar) Over 100,001 sq. ft Plan Check Fee 0.05 0.03
Inspection Fee 0.10 0.05
New Commercial-Shell with Interior Improvements (includes Hotels/Motels/Asst. Living) Over 100,001 sq. ft Plan Check Fee 0.12 0.07
Fire & Hood Suppression/Alarm System/Detection System Over 100,001 sq. ft Fire Plan Check Fee 0.02 0.01
Inspection Fee 0.05 0.04
Enterprise Fees - Solid Waste
The Replacement of Damaged/Burnt Bins for 1, 2, 3, 4, and 6 yard bins have been adjusted to reflect the actual replacement cost to the City.

Replacement of Damaged/Burnt Bins FY21-22 FY 22-23
1 yard bin Per Bin $592.00 $812.00
2 yard bin Per Bin $709.00 $768.00
3 yard bin Per Bin $717.00 $891.00
4 yard bin Per Bin $792.00 $1,063.00
6 yard bin Per Bin $868.00 $1,500.00
Planning - (General Fund)
Special Service Fee has been adjusted to include the Direct Rate (Salary & Benefits) and the Indirect Rate for the per hour calculation to be charged for Special Services . These fees are for requested work above and beyond the normal planning services provided for strategic planning and development review services as part of the standard project review and inspection.

Special Services Fee/Inspections FY 22-23
Direct Rate (Salary& Benefits) and Indirect Rate Per Hour Visalia City Council Printed on 6/2/2022Page 6 of 11
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Bargaining Unit MOU Changes - The following hourly rates are associated with a specific job position and have been adjusted based on historical salary and benefit increases and budget assumptions for the next budget year.

Community Development - Engineering (General Fund)
The fees for Sr. Civil Engineer, Land Surveyor, Civil Engineer, Associate Engineer, Assistant Engineer, Sr. Engineering Technician, Engineer Construction Inspector, and Inspector Overtime (page 21) have been adjusted to reflect the direct rate (salary and benefits) and the indirect rate (overhead costs) of 32.50%.

The indirect rate fluctuates from year to year and is approved by the cognizant agency (CalTrans) in 2021.

The indirect rate is derived from the Cost Allocation Plan which is calculated every year and is based on actual expenses from the prior two years.

FY 21-22 FY 22-23
Sr Civil Engineer Per Hour $105.50 $111.60
Land Surveyor Per Hour $105.50 $112.90
Civil Engineer Per Hour $96.50 $101.90
Associate Engineer Per Hour $92.40 $95.75
Assistant Engineer Per Hour $83.20 $90.90
Sr. Engineering Technician Per Hour $68.55 $72.00
Engineer Construction Inspector Per Hour $77.05 $81.25
Inspector OT (2 hr min.) Per Hour $115.60 $121.85
Fire - (General Fund)
The Weed Abatement Administrative Fee (page 28) and the Declaration of Public Nuisance Fee (page 28) were both increased from $85.25 to $90.65 to reflect the hourly rate of an inspector. These fees have been adjust to reflect the direct rate (salary and benefits) and the indirect rate (overhead costs) of 27.2%. The Declaration of Public Nuisance Fee - Includes 3 Hours (page 28) was increased from $255.75 to $271.95 to reflect 3 hours at the hourly rate of an inspector ($90.65). This fee reflects the direct rate (salary and benefits) and the indirect rate (overhead costs) of 27.2%.

FY 21-22 FY 22-23
Weed Abatement (Administrative Fee) Per Hour $85.25 $90.65 Declaration of Public Nuisance-Each Add Hr Per Hour $85.25 $90.65 Declaration of Public Nuisance-3 Hrs Per Nuisance $255.75 $271.95 Exhibits and Trade Shows Fee (page 30) and Open Burning Fee (page 30) are increasing from $170.50 to $181.30 per event, which represents two hours of a Fire Prevention Officers time. Temporary Membrane Structures or Tents Fee (page 30) is increasing from $127.88 to $135.98 per event to help recover costs associated with reviewing permits and performing inspections at events where Temporary Membrane Structures and Tents are used. A Temporary Membrane Structure or Tent inspection takes approximately half an hour to review and process and on average an hour of inspection time. Temporary Membrane Structures or Tents are over 400 square feet and larger. Inspections can include, but are not limited to, anchoring, tie downs, exits, heating, cooling gas lines, power, and generators. These fees reflect the direct rate (salary and benefits) and the indirect rate (overhead costs) of 27.2%.

FY 21-22 FY 22-23
Exhibits and Trade Shows Per Event $170.50 $181.30
Open Burning Per Event $170.50 $181.30
Temporary Membrane Structures and Tents Per Event $127.88 $135.98 Visalia City Council Printed on 6/2/2022Page 7 of 11
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Enterprise Fees - Building Safety Fund
Expedited Overtime Inspection Fee (page 53) is for after-hours and weekend building inspections that are currently being offered to the public at a 2-hour minimum rate. This fee reflects the direct rate (salary and benefits) and the indirect rate (overhead costs) of 5.56%. The hourly rate for a Building Safety Inspector is $69.26 per hour; the overtime is calculated at time and a half which is $103.90 per hour.

FY 21-22 FY 22-23
Expedited Overtime Inspection Fee (two (2) hr minimum)* Per Hour $99.40 $103.90 *Availability dependent upon staffing resources
Enterprise Fees - Solid Waste
Special Haul Service/Special Billing Service, fees for Full Time Employee Labor and Full Time Employee Overtime Labor (page 69) have been adjusted to reflect the direct rate (salary and benefits). The hourly fee is $53.56, and the overtime rate is calculated at time and a half which is $80.34. The hourly fee of $8.22 for the Vehicle Time has been adjusted to reflect the cost calculation for one hour of time based on fuel costs, parts/labor, and depreciation.

Replacement Cost of Miscellaneous Items (Including Staff Time), fees for Key Replacement and Lock Replacement (Page 70) have been adjusted to $15.39 and $26.39. Fees reflect a base rate of $2.00 and $13.00 and include a quarter hour of the Full Time Employee Labor fee listed on page 69.

Special Haul Service/Special Billing Service: FY21-22 FY 22-23 Full Time Employee Labor Per Hour $48.92 $53.56
Vehicle Time Per Hour $5.66 $8.22
Full Time Employee Overtime Labor Per Hour $73.38 $80.34 Replacement Cost of Miscellaneous Items (Including Staff Time):

Key Replacement Per Key $14.23 $15.39
Lock Replacement Per Lock $25.23 $26.39
Police - (General Fund)
The D.U.I. Incident Fees, Towed/Storage or Impound Release Fee, Nuisance Cases and Housing Violations Fee and the Fix it Ticket Internal Processing Fee (page 31) have been adjusted to better reflect the actual cost. The fees reflect the direct rate (salary and benefits) and the indirect rate (overhead costs) of

20.00%.

FY 21-22 FY 22-23
D.U.I. Incident (Gov Code 53150-53159) Per Hr/Per Sergeant $107.41 $119.72 D.U.I. Incident (Gov Code 53150-53159) Per Hr/Per Officer $90.08 $100.93 Towed/Stored or Impound Release Fee (CVC 22850.5 & 14602.6) Per Vehicle $141.00 $158.70 Nuisance Cases and Housing Violations (COVMC 15.44.090) Per Hr/Per Officer $90.08 $100.93 Fix It Ticket Internal Processing Fee Per Vehicle $16.50 $18.80

EXISTING FEES - PREVIOUSLY NOT LISTED IN THE DOCUMENT
Enterprise Fees - Building Safety Fund
The fee for Fire Damage Report (page 53) is a current fee charged but not listed in the document.

The process already exists in the Building Safety Division but infrequently used and mirrors that of a Code Compliance Inspection for Residential and/or First-Time Home Buyers. Inspectors conduct an inspection to only complete the damage form and take photographs of fire damaged buildings. All other inspection types would need to be completed under a building permit. The fee is based on the same time spent of a Code Compliance Inspection fee of $209.20.

Other Inspection Fees FY 21-22 FY 22-23
Fire Damage Report Each $209.20 $209.20Visalia City Council Printed on 6/2/2022Page 8 of 11 powered by Legistar™
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Other Inspection Fees FY 21-22 FY 22-23
Fire Damage Report Each $209.20 $209.20
Community Development - Engineering (General Fund)
The fees for Traffic Signal Technician and Sr. Traffic Signal Technician (page 21) are current fees being charged but are not listed in the document. Fees have been adjusted to reflect the direct rate (salary and benefits) and the indirect rate (overhead costs) of 42.04%. The indirect rate fluctuates from year to year and is calculated every year based on actual expenses from the prior two years.

FY 21-22 FY 22-23
Traffic Signal Technician (Overtime Rate) Per Hour $72.12 $107.20 Sr. Traffic Signal Technician (Overtime Rate) Per Hour $73.40 $118.70

DELETED FEES
Administration - General Government and Finance (General Fund) The Council Chambers Rental fee is being deleted. This is a not a service available to the general public.

FY 21-22 FY 22-23
Council Chambers Rental Per Hour $40.50 $0.00
Geographic Information System - (General Fund)
The special projects per hour fee for staff time requested projects is being deleted. This fee is redundant as the half hour fee is already listed in the document.

FY 21-22 FY 22-23
Special Projects Per hour for staff time requested projects 134.20$ $0.00 Planning - (General Fund)
The following fees for Planning are being deleted due to no longer being needed, applicable or services are available online.

FY 21-22 FY 22-23
Documents Per document $5 to $100 ea $0.00
Document Retrieval Per retrieval $24 to $39 $0.00
Fax - First Page First Page $4.00 $0.00
Fax - Add'l Pages Additional Page $2.00 $0.00
Planning Commission Agenda Agenda - mailed (per year) $39.00 $0.00 Planning Commission Action Agenda Action Agenda - mailed (per year) $39.00 $0.00 Police - (General Fund)
The Gun Dealer Permit fee is being deleted and replaced with Retail Firearms Dealer’sLicense Application and Renewal Application fees, which are listed in the new fees section of the staff report.

FY 21-22 FY 22-23
Gun Dealer Permit $20.94 $0.00
Enterprise Fees - Building Safety Fund
The following fees for Building Safety are being deleted due to no longer being needed, applicable, or services are currently done electronically. The Temporary Sales Office/Model Home/Sales Trailer Deposit fee is being deleted as the refundable fee has been determined to be unnecessary. This refundable fee/deposit was being charged as an incentive for homebuilders who had constructed sales offices in their Visalia City Council Printed on 6/2/2022Page 9 of 11
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fee/deposit was being charged as an incentive for homebuilders who had constructed sales offices in their model homes, typically in the garage of the model home, to convert the office back to a garage so that the model home could be sold as a residential home. The fee has been determined to be unnecessary because before a model home can be listed for sale, a final inspection must be done on the model home and permit issued, which would not occur if the office had not been removed and room converted back to a garage. In addition, homebuilders seem to be moving away from on-site sales offices.

FY 21-22 FY 22-23
Retention of Plans - Document Scanning for all Triplex, Fourplex, Apartments, Condos, Sprinkler Systems and Commercial Permits Per Page $1.29 $0.00 Commercial Backflow protection Device Assembly Each $313.90 $0.00 Temporary Sales Office / Model Home / Sales Trailer Deposit- refunded after conversion Each $2,000.00 $0.00
Enterprise Fees - Convention Center
The following fees for the Convention Center are being deleted due to no longer providing the service.

ADMINISTRATIVE SERVICES FY 21-22 FY 22-23
FAXES – First page Per page 3.90$ $0.00
FAXES – Additional pages Per page 2.10$ $0.00
FAXES – Receiving Per page 1.50$ $0.00
FOOD SERVICES:

Executive meeting service ($35.00 minimum) Per person $4.00 $0.00 Fire - (General Fund)
The following fax fees for Fire are being deleted due to no longer providing the service.

FY 21-22 FY 22-23
Fax - First Page Per Page $3.50 $0.00
Fax -Addt'l Pages Per Page $1.90 $0.00

ANNUAL ADJUSTMENTS - AUTHORIZED BY ORDINANCE
The following is a listing of proposed fees where fee increases are required by ordinance.

Business Tax
The annual increases are based on the three-year average of the Consumer Price Index for All Urban Consumers (CPI-U) - U.S. City Average as previously approved by Council and authorized by City Ordinance.

This adjustment is not subject to Proposition 26 rules as this is an automatic inflationary adjustment and not a new imposition of a tax levy, charge or exaction because a fee is imposed when the governing body approves it, not when the fee takes effect. An inflationary adjustment to a levy, charge or exaction including a fee is merely a fee category set to begin at a certain future effective date. The fee is not considered an increase when it is adjusted for inflation (see Government Code Section 53750(h) (2) (A). The index applicable to fiscal year 2022-23 is 2.58%. These fees will be in effect on July 1, 2022.

Impact Fees
The ordinance approved, cost of living increase for impact fees is based upon the Engineering and News Record Construction Cost Index (ENRCCI). The index applicable to fiscal year 2022-23 is 13.82%. These fees require a sixty day notice and will be in effect on Aug 20, 2022.

Fiscal Impact:

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Proposed increases of various City rates and fees will help Departments cover costs and lessen the impact on the General Fund.

Prior Council Action: Council reviewed and approved new fees and adjustments to the Rates and Fees on June 21, 2021 for FY21-22.

Other: The following committees and commissions have reviewed the proposed rate and fee adjustments and recommend to City Council adoption of the adjustments to the City’s Rates and Fees for Fiscal Year 2022-

23. Committee or Commission

Recommended

Fees


Transit Advisory Committee

April 20, 2022

Transit Fees -

recommended


Planning Commission

April

11, 2022

Planning Fees –

recommended


Citizens Advisory Committee

June 1, 2022

All Fees -

recommended
Alternatives: Click or tap here to enter text.

Recommended Motion (and Alternative Motions if expected):

Review and discussion only; Council comments and direction are requested. Action will be taken following the public hearing at the June 20th Council meeting.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: FY 2022-23 Proposed Rates and Fees Document Visalia City Council Printed on 6/2/2022Page 11 of 11
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City of Visalia
FY 22-23 Proposed
Rates and Fees
138
Tonight’s Discussion:
•Review FY 2022-23 Proposed Rates and Fees
•No action is required tonight
•Council is to provide comments and direction
Councils' concerns arising from tonight’s
discussion will be brought back on June 20, 2022
at the Public Hearing.
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Purpose of Fees
•Fees reduce reliance upon general tax
dollars, therefore increasing money
available for services (Public Safety,
Parks, etc.)
•Encourages appropriate use of services
•Fee’s are limited to cost of service
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Fee Reviews & Recommendations
•Transit Advisory Committee
•Transit Fees – April 20, 2022
•Planning Commission
•Planning Fees – April 11, 2022
•Citizens Advisory Committee
•Sub Committee meeting May 25, 2022
•All Fees – June 1, 2022
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Proposed Inflationary Changes
• California CPI – General Rate Changes
• 4.23%
• ENRCCI – All Impact Fees
• 13.82%
• USCPI (3 year avg.) – Business Tax Fees
• 2.58%
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Proposed Changes to Fees
There are times where some or all the departments’ Rates and Fees are not increased for specific circumstances and reasons:
•Ordinance and Fees set by other Governmental Agencies
•Legal Requirements (Prop. 218 Fees)
•Contracted Fees
•Minor Administrative Fees
•Department Choice
• Building Safety
• Parks and Recreation
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Proposed Changes to Fees
•New Fees
•New to Fiscal Year 2022-23
•Fee Increases Exceeding CPI
•Increases not required by ordinance and exceed the CPI •Adjusted Fees
•Adjusted by less than the annual CPI, have been reduced to better reflect service and cost, or have increased
based on the City’s historical MOU changes
•Existing Fees- Previously Not Listed in the Document
•Approved by Council but have been inadvertently left
out of the document
•Deleted Fees
•No longer included or replaced in document
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New Fees
• Fire (General Fund)
• Police (General Fund)
Retail Firearms Dealer's FY 21-22 FY 22-23
License Application Per Permit N/A $281.00
Renewal Application Per Permit N/A $152.00
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Fee Increases Exceeding CPI
• Business Tax (General Fund)
• Enterprise Fees - Convention Center
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Fee Increases Exceeding CPI(continued)
• Enterprise Fees - Airport
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Adjusted Fees
• Administration (General Fund)
• Community Development - Planning (General Fund)
• Public Works - Grading Plan Check Fees (General Fund) FY 21-22 FY 22-23
Passport Application - Overnight Postage Fee Per Request $17.56 $18.32 Grading Permit Fees: FY 21-22 FY 22-23
1 to 100 cubic yards $77.00 $81.00
101 to 1,000 cubic yards $77.00 $81.00
1,001 to 10,000 cubic yards $248.00 $261.00
10,001 to 100,000 cubic yards $482.00 $504.00
100,001 cubic yards or more $2,309.00 $2,430.00
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Adjusted Fees(continued)
• Enterprise Fees - Animal Services
• Enterprise Fees - Building Safety Fund
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Adjusted Fees(continued)
• Enterprise Fees - Solid Waste
• Planning - (General Fund)
Special Services Fee/Inspections FY 22-23
Direct Rate (Salary& Benefits) and Indirect Rate Per Hour 150
Adjusted Fees(continued)
The following hourly rates are associated with a specific job positions and have been adjusted based on budget assumptions for the next budget year.
• Community Development - Engineering (General Fund)
• Fire (General Fund)
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Adjusted Fees(continued)
• Fire (General Fund)
• Building Safety (Enterprise Fund)
FY 21-22 FY 22-23
Expedited Overtime Inspection Fee (two (2) hr minimum)* Per Hour $99.40 $103.90 *Availability dependent upon staffing resources
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Adjusted Fees(continued)
• Solid Waste (Enterprise Fund)
• Police (General Fund)
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Current Fees – Previously Not
Listed In Document
• Enterprise Fees - Building Safety Fund
• Community Development - Engineering (General Fund)
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Deleted Fees
Several Fees are recommended to be deleted due to the
following:
• New fees replacing old fees.
• Fees no longer needed, not offered to the
general public, or used.
• Duplicate or redundant fees listed in the
document.
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Next Steps
•Continue Rates and Fees discussion to June 20th
•Further review and discussion (if needed); and
•Conduct the required public hearing
•If approved on June 20th, 2022 the effective dates
will be the following.
•All Fees July 1, 2022 (excluding Impact Fees)
•Impact Fees effective August 20, 2022 (60 day
notice required)
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QUESTIONS
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0150 Agenda Date: 6/6/2022 Agenda #: 1.

Agenda Item Wording:

Authorization to read ordinances by title only.

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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0088 Agenda Date: 6/6/2022 Agenda #: 2.

Agenda Item Wording:

Confirm the City Manager’sexecution of a construction contract change order to excavate and repair various roadway subgrade sections along Avenue 288 due to subgrade “pumping”on a Time and Materials basis with a not to exceed amount of $300,000 for the Avenue 288 Reconstruction Project (4330-72000/CP0319-999) and appropriate $300,000 from the WWTP Fund (431).

Deadline for Action: 6/6/2022. See ‘Summary’ for deadline explanation.

Submitting Department: Administration - CIP Engineering Contact Name and Phone Number:

Casey Chu, Assistant Engineer, [email protected], 713-4491 Diego Corvera, Civil Engineer, [email protected], 713-4209 Frank Senteno, City Engineer, [email protected], 713-4331 Nick Mascia, Assistant City Manager, [email protected], 713-4323 Department Recommendation:

Staff recommends City Council confirm the City Manager’sexecution of a “Time and Materials” construction contract change order to repair the “pumping”that was found once the roadway was excavated through the Avenue 288 Reconstruction Project. The change order will be a not to exceed amount of $300,000. In addition, staff is requesting an appropriation of $300,000 from the WWTP fund (431).

Summary:

After completing the grading and compaction of the roadway’ssubgrade and aggregate base material layer in preparation for the placement of asphalt, the project encountered a significant subgrade issue. Throughout the mile stretch of roadway, various subgrade locations began to “pump”when large heavy vehicles would drive over the compacted base material. As heavy loads are applied to the road, the road surface creates waves similar in appearance to waves in the ocean. The wave like movement of the roadway, also called pumping, is the result of the underlying subgrade soils being oversaturated with moisture. Left unaddressed, the pumping will potentially undermine the new asphalt pavement and result in an expedited deterioration or outright failure of the roadway.

The roadway pumping encountered on Avenue 288 was caused by a combination of factors that included oversaturation, the presence of a clay binder in the underlying soils, heavy traffic loading, cooler temperatures, and heavy agricultural irrigation immediately north and adjacent to the roadway. The oversaturated soil conditions were in most part due to seepage from the agricultural flood irrigation operations occurring adjacent to the roadway. Saturation levels were further exacerbated by the presence of a clay binder in the underlying soils that created conditions adverse to better soil drainage. Staff provided notice to the adjacent farmer and coordinated to establish a setback from the roadway to minimize seepage and prevent future damage.

The change order will repair the sections of the roadway needed by removing and replacing unsuitable subgrade soils with multiple layers of aggregate base and geogrid. The geogrid fabric, a geosynthetic material designed to increase soil stability and prevent pumping, will add strength to the overall roadway to help Visalia City Council Printed on 6/3/2022Page 1 of 5
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designed to increase soil stability and prevent pumping, will add strength to the overall roadway to help “bridge”any future subgrade issues. Once repairs have been made, asphalt will be placed to complete the roadway.

In order to avoid further delays and cost, Staff directed the Contractor to complete the change order work described above. The change order was previously approved by the Change Order Committee for an amount not to exceed $300,000. The change order work was completed on the week of May 23, 2022 and asphalt paving will likely have been completed as of the June 6th City Council meeting. Due to time sensitive nature of the work and the Contractor’snext paving availability being after September 2022, proceeding with the change order work was necessary. See below for further details.

Background Discussion:

The County of Tulare requested the City of Visalia to repair and maintain Avenue 288. On August 18, 2020, the City of Visalia entered into an Operations and Maintenance Agreement with the County of Tulare for the roadway segment of Avenue 288 from Road 68 to the City of Visalia Wastewater Treatment Plant. In return, the County provided partial funding to reconstruct Avenue 288.

On the Council Meeting of June 7, 2021, City Council authorized the City Manager to award the construction contract for RFB 20-21-23, Avenue 288 Reconstruction & WWTP Onsite Improvements Project to Cal Valley Construction in the amount of $977,599 of which $706,285 is for the Avenue 288 Reconstruction Project.

Construction for the Avenue 288 project started on January 31, 2022. As a part of the construction process, the Contractor completed the subgrade and base material preparation to be within the 95% compaction requirement of the project specifications. With the subgrade and base layers ready, asphalt paving was scheduled for February 15. However, pumping behavior throughout the roadway was observed on the scheduled paving day by the City’sPublic Works Inspector and the Contractor. In addition, staff observed the flood irrigation of the agricultural fields north of the roadway on the same day. As a result of the unforeseen developments in the field, asphalt paving was put on hold until a solution could be identified and implemented.

Over the next few days, engineering staff performed field investigations and identified the pumping locations and other areas of concern in the field as shown in Attachment 1. Concurrently, staff also obtained technical assistance from Kleinfelder, the contracted geotechnical testing consultant, and Tensar, the geogrid fabric producer, in performing additional field investigations and to develop a recommendation to resolve the pumping issue.

Following the project being put on hold, staff immediately reached out to the adjacent farmer to minimize irrigation operations and to construct a dirt berm to separate the irrigation water from seeping into the roadway.

The farmer agreed to create the dirt berm and stated that irrigation would be minimized to the extent possible.

Additionally, the farmer informed staff of his plan to switch from flood irrigation to a less invasive spray irrigation system later in the year which would assist in keeping the subgrade dry in the future.

Engineering staff went to the Change Order Committee to seek approval to move forward with the recommended subgrade repairs on March 3. The Change Order Committee is a non-appointed committee of technical staff who are not directly involved with the project being considered. The Committee reviews the contract change order request for completeness, accuracy, constructability, objectivity, consistency, and overall insight. The Committee approved a change order for the needed repairs with a not to exceed amount of $300,000. The not to exceed amount of $300,000 was determined through an Engineer’s estimate of quantities and probable costs for the repairs. Due to the high dollar amount per the City Procurement Policy, the change order requires City Council approval.

During the Change Order Committee meeting, engineering staff noted the $300,000 amount represented the worst-case scenario assuming a full depth dig out of the saturated roadway material, increases in material costs, demobilization and remobilization, and costs due to delays. Prior to bringing the change order to the Visalia City Council Printed on 6/3/2022Page 2 of 5
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costs, demobilization and remobilization, and costs due to delays. Prior to bringing the change order to the Committee and to help reduce the amount of repairs, staff allowed the road to dry out and mend on its own.

Field observations confirmed the roadway conditions improved significantly over time and with optimal weather indicating lesser costly repairs.

Staff directed the contractor to perform subgrade repairs up to the administrative dollar amount threshold and to place asphalt onto the portions of the road in better condition between March 7 to March 11. As a result, approximately 75% of the road was repaired and paved. The remaining road segments were severely affected by pumping conditions and additional time to dry out was required. The Contractor then de-mobilized and awaited direction from the City to return and complete the repairs and pavement of the remaining portion of Ave 288.

Following the initial repair work, staff continued to monitor the roadway conditions as it dried out allowing the unpaved areas to become firm and un-yielding to traffic loading. As a result, the remaining unpaved roadway will be less costly to repair and the entire $300,000 estimate of probable cost of repair is unlikely to be fully utilized. Additionally, the repaired and newly paved areas were found to be in excellent condition.

Staff also made use of this time to issue a formal notice, prepared in consultation with the City Attorney’soffice and County of Tulare Staff, to the farmer to cease further seepage. The formal notice demanded the farmer to establish a 10-foot setback off of the road right-of-way and informed the farmer of his responsibility to prevent any seepage into the roadway. As of the writing of this report, the farmer was in receipt of the notice and staff observed the farmer to be working on the establishment of the setback. All flood irrigation operations have ceased due to crops being harvested. As the project nears completion, staff intends to send additional notice to remind the farmer to permanently maintain the setback into the future past the construction completion date and legal consequences of allowing seepage into the public roadway.

As City staff continued to allow the roadway to mend, the Contractor notified staff of their lack of paving availability between June to September. Consequently, staff performed an additional field investigation and determined that the roadway has stabilized and is ready to be paved. Because of the Contractor’slimited schedule, staff authorized the contractor to proceed with the remainder of the repairs prior to this City Council authorization and to complete the project for the reasons following:
· Incomplete and Exposed Roadway:
o Additional exposure of the base layer to ambient weather conditions and traffic without an asphalt surface layer results in further damage to the roadway’s structural section and shortening of the road’s useful lifespan.
· Project Timing:
o As a result of the contractor being unable to return to the jobsite between June to September, the delays in completing the project will increase the cost of the work to be performed. o By not completing the project as soon as possible, there will be an additional cost of $1,200 per day to maintain dust control in compliance with the California Air Resources Board. o Cost of material and trucking will continue to rise resulting in unnecessary costs while waiting.

At the time of the change order work being performed, the roadway conditions were ideal to complete the work. The summertime brought warmer temperatures assisting in the drying out of the excess moisture in the roadway. As a result, the roadway has stabilized and requires minimal repair work. The flood irrigation on the adjacent field to the roadway has stopped with the crops being harvested and the farmer has agreed to staff’s request to minimize seepage into the roadway. The farmer is currently working on the establishment of the setback as shown in Attachment 4.

The incurred change order work costs have been reviewed and are reasonable. Staff deems the costs of the repair work to be fair as the costs are comparable to competitive bids and similar work performed on other Visalia City Council Printed on 6/3/2022Page 3 of 5
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repair work to be fair as the costs are comparable to competitive bids and similar work performed on other projects. Therefore, staff recommends City Council authorize the change order for the additional subgrade repairs and the associated costs of the repair as described above.

Fiscal Impact:

The Avenue 288 Reconstruction Project, CP0319, and the Wastewater Treatment Plant On Site Improvements Project, CP0314, were bundled together due to the similar type of work and proximity to each other in an effort to obtain cost savings through economies of scale. These projects are funded by the following:
· Avenue 288 Reconstruction Project (4330-72000/CP0319-999) o County of Tulare Contribution (281) - $200,000
o WWTP (431) - $663,000
· Wastewater Treatment Plant On Site Improvements Project (4330-72000/CP0314-999) o WWTP (431) - $324,000
The Avenue 288 Reconstruction Project, awarded by City Council on June 7, 2021 to Cal Valley Construction, has a total project budget of $863,000 funded by the County of Tulare’scontribution of $200,000 and the WWTP Fund’s contribution of $663,000.

Staff has reached out to Tulare County to request the County’s $200k contribution to be increased proportionally to the change order percentage. Staff is waiting to hear back if the County is amicable to this request or if they may be willing to contribute an additional lump sum, regardless of the final change order amount.

CP0319, Avenue 288 Reconstruction Project Budget Summary Project Budget $863,000.00
Construction Cost $706,285.00
Construction Contingency $70,628.50
Design In House (Staff Time) $34,000.00
Construction Management $15,000.00
Materials Testing and Inspection $35,314.25
Estimated Total Project Cost $861,227.75
Estimated Remaining Budget $1,772.25
Avenue 288 - Pumping Roadway Repairs
Engineer’s Estimate of Repair (Approximate) $300,000.00 Request for Appropriation from Fund 431 $300,000.00
The approximate cost of the change order repairs is $300,000. The repairs to the base and subgrade of the roadway will be performed on a Time and Materials basis with a not to exceed amount of $300,000. Staff requests for an additional $300,000 appropriation from Fund 431 to complete the change order repairs.

Unexpended project and change order funds will be returned to the original fund source. Since the change order amount is larger than $100,000, City Council approval is required. The item has been reviewed and approved by the City’s Change Order Committee on March 3, 2022.

Prior Council Action:

June 7th, 2021 - City Council authorized the City Manager to award the construction contract for RFB 20-21- 23, Avenue 288 Reconstruction & WWTP Onsite Improvements Project to Cal Valley Construction.

Alternatives:

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None recommended.

Recommended Motion (and Alternative Motions if expected):

I move to confirm the City Manager’sexecution of a “Timeand Materials”construction contract change order to Cal Valley Construction with a not to exceed amount of $300,000 for the Avenue 288 Reconstruction Project and appropriate $300,000 from the WWTP Fund (431).

Environmental Assessment Status:

None.

CEQA Review:

None.

Attachments:

1. Attachment 1 - Pumping Locations

2. Attachment 2 - Prior Project Staff Report

3. Attachment 3 - Construction Sequence

4. Attachment 4 - Setback Progress
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Silty SandSoil with Clay BinderExisting Undisturbed Road AsphaltAvenue 288 Reconstruction Project – Construction Sequence Not to Scale

0. Existing Conditions
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Silty SandSoil with Clay BinderExisting Undisturbed Road Pulverized Asphalt (New Base Layer)Avenue 288 Reconstruction Project – Construction Sequence Not to Scale

1. Pulverize Existing Asphalt to reuse as Base Layer
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Base LayerGeogridSubgradeSilty SandSoil with Clay BinderCurrent Roadway SectionExisting Undisturbed Soil Avenue 288 Reconstruction Project – Construction Sequence Not to Scale

2. Prepare Subgrade & Place Geogrid
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Base LayerGeogridSubgradeSilty SandSoil with Clay BinderRoadway SectionExisting Undisturbed Soil Avenue 288 Reconstruction Project – Construction Sequence Not to Scale

3. Place Asphalt
Asphalt
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Base LayerGeogridSubgradeSilty SandSoil with Clay BinderCurrent Roadway SectionExisting Undisturbed Soil Avenue 288 Reconstruction Project – Construction Sequence Not to Scale

2.1 Pumping Roadway Encountered
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Base LayerGeogridSubgradeSilty SandSoil with Clay BinderCurrent Roadway SectionExisting Undisturbed Soil Avenue 288 Reconstruction Project – Construction Sequence Not to Scale

2.2 Causes of Pumping – Heavy Loading & Saturated SoilWheel Loading Saturated SoilRising Water
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Base LayerGeogridSubgradeSilty SandSoil with Clay BinderCurrent Roadway SectionExisting Undisturbed Soil Avenue 288 Reconstruction Project – Construction Sequence Not to Scale

2.3 Causes of Pumping – Clay Binder
Water held by Clay Binder
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Base LayerGeogridSilty SandSoil with Clay BinderCurrent Roadway SectionExisting Undisturbed Soil Avenue 288 Reconstruction Project – Construction Sequence Not to Scale

2.5 Change Order Repairs – Digout Wet Materials & “Bridge” Over Saturated Soil Base LayerGeogrid
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Base LayerGeogridSilty SandSoil with Clay BinderCurrent Roadway SectionExisting Undisturbed Soil Avenue 288 Reconstruction Project – Construction Sequence Not to Scale

3. Place Asphalt
Base LayerGeogrid
Asphalt
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Before – No Setback
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After – Setback in Progress
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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0138 Agenda Date: 6/6/2022 Agenda #: 3.

Agenda Item Wording:

Authorize the City Manager to: 1) award the construction contract for RFB 21-22-35, FFY 19-20 Major Street Rehabilitation - Goshen Ave from Shirk Street to Mooney Blvd., to A.J. Excavation, Inc. of Fresno, CA. in the amount of $3,199,427; 2) authorize the transfer of $1.2M of Surface Transportation Block Grant (STBGP) funds from CP9225 Road Rehab to CP0490.

Deadline for Action: None.

Submitting Department: Administration - CIP Engineering Contact Name and Phone Number:

Chantha Chap, Civil Engineer, [email protected], 713-4418 Frank Senteno, City Engineer, [email protected], 713-4331 Nick Mascia, Assistant City Manager, [email protected], 713-4323 Department Recommendation:

Staff recommends that City Council:

1. Authorize the City Manager to award the construction contract for RFB 21-22-35, FFY 19-20 Major Street Rehabilitation - Goshen Ave (CIP 2370-72000/CP0490-999), to A.J. Excavation, Inc. in the amount of $3,199,427; and

2. Authorize the transfer of $1,200,000 in Surface Transportation Block Grant Program (STBGP) funds previously allocated to the City from CP9225 Road Rehabilitation to CP0490 Major Street Rehabilitation - Goshen Ave.

Summary:

This project includes the pavement rehabilitation of approximately 2.9 miles of roadway on Goshen Avenue from Shirk Street to Mooney Blvd. The rehabilitation work includes removing isolated areas of pavement failures, also known as digouts, edge grind of existing asphalt and overlay with hot mix asphalt and paving mat. The paving mat is placed prior the asphalt overlay and is designed to maximize the life of the new pavement section. The project also includes the upgrade of some existing curb ramps to meet current Americans with Disabilities Act (ADA) requirements.

Public notifications will be provided prior to construction and work will be scheduled to have the least inconvenience to the traveling public. Construction is anticipated to occur during the summer time when school is not in session. In addition, Staff will be coordinating with impacted schools in the areas to keep school officials informed of the construction activities.

Bidding Process:

The standard city bid process was conducted, and on April 12, 2022, City staff opened 6 (six) bids submitted for the project. Per the construction contract documents, the apparent low bid contractor selection was established by the lowest total of the Base Bid plus Alternate Bid 1 plus Alternate Bid 2 plus Alternate Bid 3.

A summary is provided as follows:

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No. Contractor Location Base Bid + Alt Bid 1 + Alt Bid 2 + Alt Bid 3

1. A.J. Excavation Fresno, CA $3,994,977.00

2. Don Berry Construction Kingsburg, CA $4,184,109.45

3. Agee Construction Clovis, CA $4,205,654.00

4. Avison Construction Madera, CA $4,254,251.00

5. Call Valley Construction Fresno, CA $5,043,909.90

6. Papich Construction Arroyo Grande, CA $5,384,535.55
A.J. Excavation submitted the lowest responsive Bid, and it is staff’srecommendation they be awarded the contract. A.J. Excavation recently completed a road widening project for the County of Merced. Staff reached out to the County of Merced and the County’sproject manager indicated that they were easy to work with, had good communication, minimal change orders, and performed quality work.

Background Discussion:

The City of Visalia is currently maintaining a street network of approximately 507 centerline miles of roadway and nearly 100 million square feet of pavement. In an effort to appropriately direct maintenance activities and optimize the use of the limited maintenance funds available, Staff incorporated a Pavement Management Program (PMP) eight years ago, following the lead of other similarly sized California municipalities.

The projects that were constructed in the last eight years and those being awarded now will help to increase the City’soverall pavement condition index (PCI). PCI is a numerical index between 0 to 100, with 0 indicating very poor pavement condition and 100 to indicate excellent pavement condition. The higher the PCI, the better condition the road is in. Roads with a higher PCI have little to no visual stresses in the pavement such as cracks, rutting, or pot holes, and generally are smoother to drive on which results in less wear and tear on vehicles. Higher PCI also makes the road safer for the traveling public.

Fiscal Impact:

Additional funding is needed to cover the remaining construction costs and soft costs associated with the project. Following is a summary of the current budget expenses:

Budget Summary: FFY 19-20 Major Street Rehab - Goshen Ave, CP0490 (STBGP) Project Budget:

STBGP Funds (Gas Tax Fund 111) $1,500,000
Measure N Funds (141) $820,000
Recommended Transfer of Funds:

Transfer from CP9225 Road Rehab - STBGP Funds (Gas Tax Fund 111) $1,200,000 Budget Total $3,520,000
Estimated Project Costs:

Construction Cost $3,199,427
Construction Contingency $130,573
Construction Management, Inspection & Testing $190,000 Total Project Cost $3,520,000
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File #: 22-0138 Agenda Date: 6/6/2022 Agenda #: 3.

The City previously received an allocation of STBGP funds from TCAG in the amount of $1.5M and these funds were designated toward the Goshen Ave. road rehab project. TCAG notified the City of STBGP funds available in the amount of $1.2 million that could be utilized towards Riggin Avenue widening projects, specifically towards the segments from Akers to Demaree and Mooney to Conyer. However, given the deadline associated with these funds, staff recommended these funds be instead allocated to the Goshen Ave road rehab project. The Goshen Ave. road rehab is a project already identified in the Federal Transportation Improvement Program (FTIP) and the NEPA requirement needed to obligate the STBGP funds by the deadline has been completed. TCAG agreed in allocating STBGP funds towards this project and the $1.2 million to Goshen Ave. has been programmed in the FTIP.

The $1.2 million is from the annual allotment of STBGP funds the City receives. This annual allotment of STBGP funds are budgeted in CP9225 Road Rehabilitation. Upon identification of a specific project, a transfer of funds to a project specific CIP is recommend to track costs separately by project location. Staff recommends $1.2 million in STBGP funds be transferred from CP9225 Road Rehabilitation to CP0490 Goshen Ave. rehabilitation project. The additional STBGP funds in the amount of $1.2M to the Goshen Ave. rehabilitation project will allow for construction of the segments from Akers to Demaree on Goshen Ave.

STBGP funds allocated to the City are generally tracked in the Gas Tax Fund (111).

Prior Council Action:

None.

Alternatives:

None recommended.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to award the construction contract for FFY 19-20 Major Street Rehabilitation - Goshen Avenue (RFB 21-22-35), to A.J. Excavation, Inc. in the amount of $3,199,427 and authorize the transfer of $1,200,000 in STBGP (111) funds from CP9225 to CP0490.

Environmental Assessment Status:

NEPA Review: Categorical Exclusion under CFR 771.117(c), activity (c) 26 CEQA Review: Categorical Exemption, Class 1, Section 15301c Attachments:
1) Location Map
2) Contractor Disclosure Form
3) Bid Summary
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Hwy 198
N Shirk St
W Tulare Ave
W Hurley Ave
S Akers St
Rd 92
W Ferguson Ave
N Demaree St
N Akers St
S Linwood St
W Riggin Ave
S Chinowth St
S Dem
aree St
W Iris Ave
W Doe Ave
S Shirk Rd
S Roeben St N Roeben St
W Mineral King Ave
W Noble Ave
N Chinowth St
W Riverway Ave
W Cypress Ave
W Houston Ave
Ave 312
N Linwood St
W Hillsdale Ave
W Pershing Ave
S Shirk St
W Sweet Dr
S Redwood
St
W Mill Creek Dr
N Preston St
W Perez Ave
W Hyde Ave
W Wren Ave
W Sweet Ave
W Goshen Ave
W Nicholas Ave
W Feemster Ave
W Modoc Ave
W Prospect Ave
N Tom
m
y St
W Delta Ave
Rd 100
W Glendale Ave
W Shannon Pkwy
N Carl Dr
W Logan Ave
W Leighson Ave
W Royal Oaks Dr
W Allen Ave
S Fulgham
St
W Paradise Ave
N
Atwood St
W Buena Vista Ave
W Robin Ave
W Sunnyview Ave
W Judy Ave
W Sady Ave
N Crenshaw St
N El Cajon St
W Grove Ave
W Sedona Ave
W Damsen Ave
N Boise St
W Oakridge Ct
W Howard Ave
W Babcock Ave
W Lark Ave
S Tom
m
y St
N
Noyes St
N M
arcin St
W School Ave
W Lark Ct
W Elowin Dr
N Denton St
Molenstraat
W Dartmouth Ave
W Vine Ave
W Pershing Ct
W Oriole Ave
N Leila St
W Grove Ct
N
Kayenta St
W Clinton Ave
N University St
Private St
W Payson Ave
W Harold Ave
N Kent St
W Lakewood Dr
W Ceres Ave
N Tild
en St
W De Las Robles
S Jennie St
W Delaware Ave
W Ceres Ct
W Oriole Ct
W Clinton Ct
N Rono Ct
S Leila
St
W Vine Ct
W Fiano Ave
S Crenshaw Ct
W Oak Ave
N Bollinger St
N Stokes Ct
W Cecil Ave
S Cindy St
W Iris Ct
N Teddy St
W Stewart Ave
N Anthony St
W Wren Ct
N Carson St
W Heritage DrW Judy Ct
S Cottonwood Ct
N Branson Ct
N Kingm
an St
S Anthony St
W Elowin Ct
S Rova St
N Stokes St
S Noyes St
N Rono St
N Sidney St N Valley St
N Dem
aree St
W Judy Ave
W Wren Ave
W Vine Ave
W Oriole Ave
W Iris Ave
W Judy Ave
N Akers St
N Denton St
W Cypress Ave
N Preston St
W Lark Ave
N Leila St
N Dem
aree St
W Sweet Ave
N
Leila St
W Hillsdale Ave
W Riggin Ave
W Noble Ave
W Iris Ave
W Cecil Ave
N Linwood St
W Modoc Ave
W Goshen Ave
±

LOCATION MAP
1 inch = 2,000 feet 207
208
City of Visalia - Engineering Division
FY 19-20 SB1 Street Rehab - Goshen Avenue
RFB No. 21-22-35 - Bid Summary
No. Items Qty Unit Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total 1 Mobilization/Demobilization, including final site clean-up 1 LS $55,000.80 $55,000.80 $50,000.00 $50,000.00 $40,000.00 $40,000.00 $60,000.00 $60,000.00 $125,000.00 $125,000.00 $150,000.00 $150,000.00 2 Water Pollution Prevention 1 LS $1,500.00 $1,500.00 $2,200.00 $2,200.00 $3,000.00 $3,000.00 $1,000.00 $1,000.00 $1,500.00 $1,500.00 $11,000.00 $11,000.00 3 Clearing and Grubbing 1 LS $25,000.00 $25,000.00 $2,600.00 $2,600.00 $1,000.00 $1,000.00 $20,000.00 $20,000.00 $5,000.00 $5,000.00 $9,000.00 $9,000.00 4 Public Outreach 1 LS $550.00 $550.00 $750.00 $750.00 $3,000.00 $3,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 $1,600.00 $1,600.00 5 Traffic Control 1 LS $140,000.00 $140,000.00 $13,000.00 $13,000.00 $25,000.00 $25,000.00 $122,000.00 $122,000.00 $350,000.00 $350,000.00 $64,000.00 $64,000.00 6 Construction Notification Signs 2 EA $2,200.00 $4,400.00 $220.00 $440.00 $660.00 $1,320.00 $2,000.00 $4,000.00 $750.00 $1,500.00 $1,750.00 $3,500.00 7 Lower Existing SS Manhole Below Milling Depth 7 EA $400.00 $2,800.00 $620.00 $4,340.00 $465.00 $3,255.00 $600.00 $4,200.00 $800.00 $5,600.00 $850.00 $5,950.00 8 Lower Existing SD Manhole Below Milling Depth 3 EA $400.00 $1,200.00 $620.00 $1,860.00 $465.00 $1,395.00 $600.00 $1,800.00 $800.00 $2,400.00 $940.00 $2,820.00 9 Remove/Dispose of Existing Pavement and Base Rock (Digout)30,000 SF $2.00 $60,000.00 $1.60 $48,000.00 $1.25 $37,500.00 $1.00 $30,000.00 $2.00 $60,000.00 $3.14 $94,200.00 10 Replace Digout Section (6" AC Plug) 30,000 SF $5.00 $150,000.00 $4.30 $129,000.00 $5.25 $157,500.00 $5.00 $150,000.00 $5.00 $150,000.00 $5.83 $174,900.00 11 Cold Mill and Remove Asphalt Concrete 125,650 SF $0.20 $25,130.00 $0.18 $22,617.00 $0.25 $31,412.50 $0.30 $37,695.00 $0.25 $31,412.50 $0.22 $27,643.00 12 Paving Mat 342,340 SF $0.28 $95,855.20 $0.28 $95,855.20 $0.30 $102,702.00 $0.30 $102,702.00 $0.25 $85,585.00 $1.38 $472,429.20 13 Hot Mix Asphalt (Type B, 3/4 ") for 3" Overlay 6,850 TON $97.00 $664,450.00 $110.00 $753,500.00 $110.00 $753,500.00 $120.00 $822,000.00 $115.00 $787,750.00 $95.50 $654,175.00 14 Survey Monuments 4 EA $600.00 $2,400.00 $550.00 $2,200.00 $800.00 $3,200.00 $1,000.00 $4,000.00 $1,000.00 $4,000.00 $1,400.00 $5,600.00 15 Adjust SS Manhole Covers and Boxes to Finish Grade 7 EA $1,200.00 $8,400.00 $1,650.00 $11,550.00 $600.00 $4,200.00 $1,200.00 $8,400.00 $900.00 $6,300.00 $1,500.00 $10,500.00 16 Adjust SD Manhole Covers and Boxes to Finish Grade 3 EA $1,200.00 $3,600.00 $1,650.00 $4,950.00 $600.00 $1,800.00 $1,200.00 $3,600.00 $900.00 $2,700.00 $1,500.00 $4,500.00 17 Striping and Pavement Markings 1 LS $6,200.00 $6,200.00 $6,100.00 $6,100.00 $5,900.00 $5,900.00 $6,000.00 $6,000.00 $15,800.00 $15,800.00 $8,500.00 $8,500.00 18 Raised Pavement Markers 1 LS $1,600.00 $1,600.00 $1,600.00 $1,600.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $500.00 $500.00 $1,350.00 $1,350.00 $1,248,086.00 $1,150,562.20 $1,177,184.50 $1,380,897.00 $1,637,047.50 $1,701,667.20 No. Items Qty Unit Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total 1 Mobilization/Demobilization, including final site clean-up 1 LS $25,000.00 $25,000.00 $50,000.00 $50,000.00 $40,000.00 $40,000.00 $1,000.00 $1,000.00 $56,000.00 $56,000.00 $5,000.00 $5,000.00 2 Water Pollution Prevention 1 LS $1,000.00 $1,000.00 $2,200.00 $2,200.00 $2,000.00 $2,000.00 $500.00 $500.00 $500.00 $500.00 $5,000.00 $5,000.00 3 Clearing and Grubbing 1 LS $8,200.00 $8,200.00 $1,500.00 $1,500.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $65,000.00 $65,000.00 $13,000.00 $13,000.00 4 Public Outreach 1 LS $550.00 $550.00 $750.00 $750.00 $2,500.00 $2,500.00 $100.25 $100.25 $500.00 $500.00 $1,500.00 $1,500.00 5 Traffic Control 1 LS $25,000.45 $25,000.45 $30,000.00 $30,000.00 $39,000.00 $39,000.00 $40,000.00 $40,000.00 $89,000.00 $89,000.00 $32,000.00 $32,000.00 6 Construction Notification Signs 2 EA $950.00 $1,900.00 $220.00 $440.00 $650.00 $1,300.00 $1,000.00 $2,000.00 $750.00 $1,500.00 $1,750.00 $3,500.00 7 Remove Concrete Ramp and Adjoining Sidewalk, Curb and Gutter 2,365 SF $4.00 $9,460.00 $3.00 $7,095.00 $2.00 $4,730.00 $5.00 $11,825.00 $5.00 $11,825.00 $3.60 $8,514.00 8 Lower Existing SS Manhole Below Milling Depth 4 EA $400.00 $1,600.00 $620.00 $2,480.00 $465.00 $1,860.00 $600.00 $2,400.00 $800.00 $3,200.00 $860.00 $3,440.00 9 Lower Existing SD Manhole Below Milling Depth 6 EA $400.00 $2,400.00 $620.00 $3,720.00 $465.00 $2,790.00 $600.00 $3,600.00 $800.00 $4,800.00 $1,750.00 $10,500.00 10 Modify Existing Drain Inlet 1 EA $10,000.00 $10,000.00 $4,300.00 $4,300.00 $4,000.00 $4,000.00 $8,000.00 $8,000.00 $2,900.00 $2,900.00 $5,800.00 $5,800.00 11 Double Modified ADA Ramp with Detectable Surface and Adjoining Sidewalk, Curb and Gutter (3,332 SF)4 EA $8,000.00 $32,000.00 $8,700.00 $34,800.00 $10,500.00 $42,000.00 $12,000.00 $48,000.00 $2,850.00 $11,400.00 $11,000.00 $44,000.00 12 Landscape Construction Modification 1 LS $2,000.00 $2,000.00 $2,600.00 $2,600.00 $1,100.00 $1,100.00 $2,000.00 $2,000.00 $12,000.00 $12,000.00 $11,000.00 $11,000.00 13 Remove/Dispose of Existing Pavement and Base Rock (Digout) 30,000 SF $1.20 $36,000.00 $1.60 $48,000.00 $1.25 $37,500.00 $1.00 $30,000.00 $1.20 $36,000.00 $3.14 $94,200.00 14 Replace Digout Section (6" AC Plug) 30,000 SF $4.40 $132,000.00 $4.30 $129,000.00 $5.25 $157,500.00 $5.00 $150,000.00 $6.00 $180,000.00 $5.55 $166,500.00 15 Cold Mill and Remove Asphalt Concrete 116,910 SF $0.13 $15,198.30 $0.19 $22,212.90 $0.20 $23,382.00 $0.30 $35,073.00 $0.30 $35,073.00 $0.18 $21,043.80 16 Paving Mat 335,175 SF $0.27 $90,497.25 $0.28 $93,849.00 $0.30 $100,552.50 $0.25 $83,793.75 $0.25 $83,793.75 $1.38 $462,541.50 17 Hot Mix Asphalt (Type B, 3/4 ") for 3" Overlay 6,705 TON $98.00 $657,090.00 $110.00 $737,550.00 $111.00 $744,255.00 $112.00 $750,960.00 $115.00 $771,075.00 $93.20 $624,906.00 18 Video Detection Systems 1 LS $51,000.00 $51,000.00 $75,000.00 $75,000.00 $51,000.00 $51,000.00 $50,000.00 $50,000.00 $65,600.00 $65,600.00 $77,700.00 $77,700.00 19 Traffic Signal Box Replacement or Relocation (If Required) 1 LS $22,000.00 $22,000.00 $2,200.00 $2,200.00 $24,000.00 $24,000.00 $1,200.00 $1,200.00 $1,000.00 $1,000.00 $2,200.00 $2,200.00 20 Survey Monuments 8 EA $550.00 $4,400.00 $550.00 $4,400.00 $800.00 $6,400.00 $1,000.00 $8,000.00 $1,000.00 $8,000.00 $1,300.00 $10,400.00 21 Adjust SS Manhole Covers and Boxes to Finish Grade 4 EA $1,000.00 $4,000.00 $1,650.00 $6,600.00 $600.00 $2,400.00 $1,200.00 $4,800.00 $900.00 $3,600.00 $1,600.00 $6,400.00 22 Adjust SD Manhole Covers and Boxes to Finish Grade 6 EA $1,000.00 $6,000.00 $1,650.00 $9,900.00 $600.00 $3,600.00 $1,200.00 $7,200.00 $900.00 $5,400.00 $1,600.00 $9,600.00 23 Striping and Pavement Markings 1 LS $11,500.00 $11,500.00 $12,000.00 $12,000.00 $10,900.00 $10,900.00 $12,000.00 $12,000.00 $19,000.00 $19,000.00 $12,500.00 $12,500.00 24 Raised Pavement Markers 1 LS $1,600.00 $1,600.00 $1,600.00 $1,600.00 $2,000.00 $2,000.00 $1,500.00 $1,500.00 $500.00 $500.00 $1,350.00 $1,350.00 $1,150,396.00 $1,282,196.90 $1,305,769.50 $1,254,952.00 $1,467,666.75 $1,632,595.30 No. Items Qty Unit Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total 1 Mobilization/Demobilization, including final site clean-up 1 LS $21,000.00 $21,000.00 $26,000.00 $26,000.00 $40,000.00 $40,000.00 $1,000.00 $1,000.00 $36,000.00 $36,000.00 $5,000.00 $5,000.00 2 Water Pollution Prevention 1 LS $1,000.00 $1,000.00 $1,100.00 $1,100.00 $2,000.00 $2,000.00 $100.00 $100.00 $500.00 $500.00 $5,400.00 $5,400.00 3 Clearing and Grubbing 1 LS $2,600.00 $2,600.00 $2,600.00 $2,600.00 $100.00 $100.00 $1,000.00 $1,000.00 $5,000.00 $5,000.00 $13,000.00 $13,000.00 4 Public Outreach 1 LS $550.00 $550.00 $750.00 $750.00 $2,600.00 $2,600.00 $100.50 $100.50 $500.00 $500.00 $800.00 $800.00 5 Traffic Control 1 LS $25,000.90 $25,000.90 $8,500.00 $8,500.00 $30,000.00 $30,000.00 $25,000.00 $25,000.00 $50,000.00 $50,000.00 $32,000.00 $32,000.00 6 Construction Notification Signs 2 EA $700.00 $1,400.00 $220.00 $440.00 $650.00 $1,300.00 $700.00 $1,400.00 $750.00 $1,500.00 $1,250.00 $2,500.00 7 Lower Existing SS Manhole Below Milling Depth 7 EA $400.00 $2,800.00 $620.00 $4,340.00 $460.00 $3,220.00 $600.00 $4,200.00 $800.00 $5,600.00 $740.00 $5,180.00 8 Lower Existing SD Manhole Below Milling Depth 3 EA $400.00 $1,200.00 $620.00 $1,860.00 $460.00 $1,380.00 $600.00 $1,800.00 $800.00 $2,400.00 $580.00 $1,740.00 9 Remove/Dispose of Existing Pavement and Base Rock (Digout) 15,000 SF $1.50 $22,500.00 $2.14 $32,100.00 $1.65 $24,750.00 $1.00 $15,000.00 $2.25 $33,750.00 $3.15 $47,250.00 10 Replace Digout Section (6" AC Plug) 15,000 SF $4.65 $69,750.00 $5.35 $80,250.00 $5.50 $82,500.00 $5.00 $75,000.00 $6.00 $90,000.00 $5.59 $83,850.00 11 Cold Mill and Remove Asphalt Concrete 118,105 SF $0.10 $11,810.50 $0.19 $22,439.95 $0.20 $23,621.00 $0.30 $35,431.50 $0.25 $29,526.25 $0.18 $21,258.90 12 Paving Mat 259,680 SF $0.27 $70,113.60 $0.28 $72,710.40 $0.27 $70,113.60 $0.25 $64,920.00 $0.25 $64,920.00 $1.38 $358,358.40 13 Hot Mix Asphalt (Type B, 3/4 ") for 3" Overlay 5,195 TON $96.00 $498,720.00 $110.00 $571,450.00 $107.00 $555,865.00 $110.00 $571,450.00 $115.00 $597,425.00 $96.85 $503,135.75 14 Video Detection Systems 1 LS $51,000.00 $51,000.00 $82,000.00 $82,000.00 $53,000.40 $53,000.40 $50,000.00 $50,000.00 $52,600.00 $52,600.00 $89,000.00 $89,000.00 15 Adjust SS Manhole Covers and Boxes to Finish Grade7 EA $1,000.00 $7,000.00 $1,650.00 $11,550.00 $600.00 $4,200.00 $1,200.00 $8,400.00 $900.00 $6,300.00 $1,700.00 $11,900.00 16 Adjust SD Manhole Covers and Boxes to Finish Grade3 EA $1,000.00 $3,000.00 $1,650.00 $4,950.00 $600.00 $1,800.00 $1,200.00 $3,600.00 $900.00 $2,700.00 $2,400.00 $7,200.00 17 Striping and Pavement Markings 1 LS $8,800.00 $8,800.00 $9,400.00 $9,400.00 $7,000.00 $7,000.00 $8,000.00 $8,000.00 $20,974.40 $20,974.40 $10,500.00 $10,500.00 18 Raised Pavement Markers 1 LS $2,700.00 $2,700.00 $2,700.00 $2,700.00 $2,600.00 $2,600.00 $2,500.00 $2,500.00 $500.00 $500.00 $2,500.00 $2,500.00 $800,945.00 $935,140.35 $906,050.00 $868,902.00 $1,000,195.65 $1,200,573.05 No. Items Qty Unit Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total 1 Mobilization/Demobilization, including final site clean-up 1 LS $5,500.00 $5,500.00 $15,000.00 $15,000.00 $5,000.00 $5,000.00 $1,000.00 $1,000.00 $20,000.00 $20,000.00 $5,000.00 $5,000.00 2 Water Pollution Prevention 1 LS $1,500.00 $1,500.00 $1,100.00 $1,100.00 $100.00 $100.00 $500.00 $500.00 $250.00 $250.00 $1,000.00 $1,000.00 3 Clearing and Grubbing 1 LS $6,500.00 $6,500.00 $550.00 $550.00 $100.00 $100.00 $500.00 $500.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 4 Traffic Control 1 LS $21,000.00 $21,000.00 $1,600.00 $1,600.00 $15,000.00 $15,000.00 $5,000.00 $5,000.00 $60,000.00 $60,000.00 $10,000.00 $10,000.00 5 Furnish and Install No. 6E Pull Box 32 EA $1,900.00 $60,800.00 $3,200.00 $102,400.00 $2,000.00 $64,000.00 $1,800.00 $57,600.00 $3,800.00 $121,600.00 $3,350.00 $107,200.00 6 Furnish and Install 3" HDPE Conduit 15,950 LF $43.00 $685,850.00 $42.80 $682,660.00 $45.00 $717,750.00 $42.00 $669,900.00 $45.00 $717,750.00 $44.40 $708,180.00 7 Furnish and Install N48 (30"x48") Splice Vault 3 EA $4,800.00 $14,400.00 $4,300.00 $12,900.00 $4,900.00 $14,700.00 $5,000.00 $15,000.00 $4,800.00 $14,400.00 $4,440.00 $13,320.00 $795,550.00 $816,210.00 $816,650.00 $749,500.00 $939,000.00 $849,700.00 $3,994,977.00 $4,184,109.45 $4,205,654.00 $4,254,251.00 $5,043,909.90 $5,384,535.55 ALTERNATE BID 3 : Traffic Signal Interconnect Total
Bid Total (Base Bid + Alt Bid 1 + Alt Bid 2 + Alt Bid 3) - Discrepancy in the Contractor's Bid Schedule. Per the Special Provision and the Standard Specifications, in case of a discrepancy between unit price and total, the unit price shall prevail. The value shown here was adjusted using the unit price amount.

AJ Excavation, Inc.

Fresno, CA
AJ Excavation, Inc.

Fresno, CA
AJ Excavation, Inc.

Fresno, CA
AJ Excavation, Inc.

Fresno, CA
BASE BID : Goshen Avenue from Shirk to Akers Total
ALTERNATE BID 1 : Goshen Avenue from Akers to Demaree Total ALTERNATE BID 2 : Goshen Avenue from Demaree to Mooney Total Papich Construction
Arroyo Grande, CA
ALTERNATE BID 3 : Traffic Signal Interconnect Don Berry Construction Kingsburg, CA
Agee Construction
Clovis, CA
Avison Construction
Madera, CA
Cal Valley Construction
Fresno, CA
Papich Construction
Arroyo Grande, CA
Agee Construction
Clovis, CA
Agee Construction
Clovis, CA
ALTERNATE BID 2 : Goshen Avenue from Demaree to Mooney Don Berry Construction Kingsburg, CA
Agee Construction
Clovis, CA
Avison Construction
Madera, CA
Cal Valley Construction
Fresno, CA
BASE BID : Goshen Avenue from Shirk to Akers
ALTERNATE BID 1 : Goshen Avenue from Akers to Demaree
Papich Construction
Arroyo Grande, CA
Papich Construction
Arroyo Grande, CA
Don Berry Construction
Kingsburg, CA
Don Berry Construction
Kingsburg, CA
Avison Construction
Madera, CA
Avison Construction
Madera, CA
Cal Valley Construction
Fresno, CA
Cal Valley Construction
Fresno, CA
1 of 1 4/15/2022 209
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0192 Agenda Date: 6/6/2022 Agenda #: 4.

Agenda Item Wording:

Second reading and adoption of Ordinance No. 2022-08, authorizing an amendment of the current lease between the City of Visalia and the Federal Express Corporation for a multiyear agreement giving the potential to add ten (10) total years to the agreement, at the rate of eleven thousand three hundred seventy-nine dollars and fifty-one cents ($11,379.51) monthly plus annual CPI adjustments.

Deadline for Action: None
Submitting Department: Administration - Airport
Contact Name and Phone Number:

Jody Miller, Airport Manager, 713-4282, [email protected] Nick Mascia, Assistant City Manager, 713-4323, [email protected] Department Recommendation:

Staff recommends that Council conduct the second reading and adoption of Ordinance 2022-08 and authorize the City Manager to amend the current Airport lease with the Federal Express Corporation to extend the current agreement for five (5) more years with one (1) renewal option of an additional five (5) years leading to a potential total additional agreement length of ten (10) years. The current lease would continue until 2027, and have the potential for a five (5) year extension until 2032.

Background Discussion:

The current lease agreement between the City of Visalia and the Federal Express Corporation was signed into agreement in May of 2017 for an initial term of five (5) years with one lessee (Federal Express Corporation) optional renewal period of an additional five (5) years. In Exhibit “B”and Exhibit “C”of the original agreement, there was a list of agreed upon improvements that the lessor (The City of Visalia) was to make throughout the term of the agreement. The agreed upon improvements were never completed due to conflict on who would be responsible financially for completing them. These improvements are now in Exhibit “A”of the amended lease with negotiated terms for fiscal responsibility that both parties, including the City of Visalia legal advisors,,, have agreed upon. It also includes an extension of the lease period of an additional five (5) years and one five (5) year optional renewal period that the lessee already held in the initial lease agreement. The lease agreement comes to just over one dollar and fifteen cents ($1.15) per square foot, which is slightly over the average cost for similar non-airport spaces of eighty-five cents ($0.85) to one dollar ($1.00) per square foot, and considered a fair rate given the airport proximity.

In the preparation of the amended lease, Visalia Airport personnel obtained quotes for the requested improvements which in total ended up at fifty five thousand three hundred nineteen dollars ($55,319), during the negotiation process City staff and the Federal Express Corporation agreed upon the lessee paying eighty-five thousand dollars ($85,000) towards these improvements in the event of raising costs pushing the work past the expected fifty-five thousand three hundred and nineteen Visalia City Council Printed on 6/3/2022Page 1 of 3
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File #: 22-0192 Agenda Date: 6/6/2022 Agenda #: 4.
raising costs pushing the work past the expected fifty-five thousand three hundred and nineteen dollar ($55,319) total, with the understanding that the eighty five thousand dollar ($85,000) amount would be the total paid whether the costs came in higher or lower. Additionally, the Federal Express Corporation hired consultants (Fischer Company) to handle their side of the lease amendment negotiation, for an additional cost of thirteen thousand six hundred fifty-five dollars and forty-one cents ($13,655.41) which the City agreed to pay upfront but would be reimbursed by the Federal Express Corporation. This led to a total owed to the City of Visalia of ninety-eight thousand six hundred fifty-five dollars and forty-one cents ($98,655.41). This amount owed is to be split into even payments of two thousand seven hundred forty dollars and forty-three cents ($2,740.43) to be paid over the first thirty-six (36) months of the new agreement on top of the standard monthly lease rate.

In the event of either lessee or lessor terminating the agreement within the initial thirty-six months all remaining due of the ninety-eight thousand six hundred fifty-five dollar and forty-one cents ($98,655.41) would be due in full at that time.

The Federal Express Corporation is a significant tenant at the City’sairport. They utilize their Visalia Municipal Airport location for not only a retail/customer facing business but also as an air-cargo hub with three (3) planes permanently located at Visalia Municipal Airport that each make multiple scheduled flights daily, and a package sorting facility to process all the cargo that arrives via those flights. Coming to this agreement with the Federal Express Corporation at their current location provides the City with indirect revenue through fuel sales and commercial landing fees while keeping a long standing tenant. The City can point to this relationship with a quality tenant when negotiating with future cargo tenants as the airport expands.

Fiscal Impact:

Visalia Municipal Airport would receive Eleven Thousand Three Hundred Seventy-Nine dollars and fifty-one cents ($11,379.51) monthly plus annual CPI adjustments for a minimum of five (5) years with the potential of ten (10) years if the Federal Express Corporation exercises their five (5) year optional renewal period at the conclusion of the initial term, plus an additional two thousand seven hundred forty dollars and forty-three cents ($2,740.43) monthly for the initial thirty-six (36) months of the amended lease term. Additionally, the City will continue to make ancillary profits from the agreement in the form of fuel sales and commercial landing fees. This money would be deposited into the Airport Fund for general use within the airport for maintenance and operation. Airport Staff will prepare an additional Staff Report to take to council following the second reading of this ordinance for budget appropriation for the repairs agreed upon in this lease amendment between the City of Visalia and the Federal Express Corporation.

Prior Council Action:

May 16th 2017: Council authorized the current lease agreement between the City of Visalia and the Federal Express Corporation.

May 2nd 2022: Council introduced Ordinance 2022-08 and conducted its first reading Alternatives: City Council could not authorize the lease and cancel the existing agreement with the Federal Express Corporation; however, this would result in significant lost revenue for the Airport.

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File #: 22-0192 Agenda Date: 6/6/2022 Agenda #: 4.

Recommended Motion (and Alternative Motions if expected):

I move to conduct the second reading and adopt Ordinance No. 2022-08 authorizing an amendment to the current lease between the City of Visalia and the Federal Express Corporation for their Airport location, extending the current lease for terms and cost specified within the staff report Environmental Assessment Status: NA.

CEQA Review: N/A
Attachments: .

1. Proposed Ordinance 2022-08

2. Proposed Amended Lease

3. Original Lease
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ORDINANCE NO. 2022-08

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VISALIA

AUTHORIZING THE CITY MANAGER TO AMEND THE CURRENT LEASE

AGREEMENT BETWEEN THE CITY OF VISALIA AND THE FEDERAL EXPRESS

CORPORATION FOR AN ADDITIONAL FIVE YEARS AS WELL AS TO MAKE ALL

REQUESTED LESSEE IMPROVEMENTS TO THE PROPERTY FOR WHICH THE

FEDERAL EXPRESS CORPORATION WILL REIMBURSE THE CITY OF VISALIA

WHEREAS, the City of Visalia owns and operates certain real property commonly referred to as the Visalia Municipal Airport and,

WHEREAS, the City of Visalia owns and leases a structure as well as ramp space at the Visalia Municipal Airport to the Federal Express Corporation for use in their cargo delivery business,

WHEREAS, the City of Visalia and Visalia Municipal Airport wis h amend the current lease between the City of Visalia and the Federal Express Corporation for an additi onal five years while also authorizing the completion of improvements to said premises which the LESSEE has requested as well as stipulating the terms of the reimbursement for said improvements.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF VISALIA,

Section 1. The City Manager of the City of Visalia is hereby authorized to execute on behalf of the City of Visalia, the amendment of the current lease agre ement between the City of Visalia and the Federal Express Corporation for their facility and ramp space at the Visalia Municipal Airport for an additional five (5) years . This amended agreement would also authorize the City of Visalia to complete all LESSEE requested improvements to said facility as well as guaranteeing the terms of reimbursement for the improvements.

Section 2. This ordinance shall go into effect thirty (30) days after its passage.

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1 FedEx Lease No. 88-1067-008
VISA

FIRST AMENDMENT TO AIRPORT LEASE AGREEMENT
THIS FIRST AMENDMENT TO AIRPORT LEASE AGREEMENT (“First Amendment”) is made and entered into as of the ____ day of _________, 2022 (the “Effective Date”), by and between FEDERAL EXPRESS CORPORATION , a Delaware corporation (“Lessee”) and CITY OF VISALIA, a municipal corporation (“Lessor”).

RECITALS
A. Pursuant to that certain Airport Lease Agreement (“Lease”) entered into by and between Lessor and Lessee, Lessee leases certain real property and improvements thereon (“Demised Premises”), which Demised Premises is located at 9510 West Airport Drive, Visal ia, California, and is more particularly described in the Lease.

B. The current term of the Lease expires March 31, 2022.

C. Lessor and Lessee now desire to extend the term of the Lease and otherwise amend the Lease as set forth below.

AGREEMENTS
In consideration of the mutual promises contained in this First Amendment and other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge , the parties agree that, as of the Effective Date, the Lease is amended as follows:

1. Definitions. Except as otherwise provided in this First Amendment, all defined terms used in this First Amendment will have the same meaning as the meaning established for them in the Lease.

2. Term. Section 3 of the Lease is hereby deleted in its entirety and replaced with the following:
“(A) The term of this LEASE shall be for period of ten (10) years commencing on the 1st day of April, 2017 and ending on the 31st day of March, 2027, unless sooner extended or terminated as provided for herein. LESSEE shall have one (1) renewal option for a period of five (5) additional years, which may be exercised by LESSEE by pro viding written notice as provided herein to LESSOR prior to January 1, 2027. If the renewal period option is timely exercised by LESSEE, the rent payable in the renewal period shall be the rent payable at the end of the initial term, adjusted for the firs t year of the renewal period and each year thereafter as per the terms of Section 4.B. below. (B) Early Termination Right. Lessee may, upon six (6) months’ advance written notice to Lessor, elect to terminate this Lease at any time after March 31, 2025, by providing written notice of that election to Lessor (“Early Termination Right”).” 214

2 3. Minimum Rent. Section 4.A. of the Lease is hereby amended to add the following sentence at the end of that paragraph:
“Beginning April 1, 2022, Lessee’s net minimum annual rental shall be One Hundred Thirty -Six Thousand Five Hundred Fifty-Four and 12/100 Dollars ($136,554.12), payable in equal monthly installments of Eleven Thousand Three Hundred Seventy-Nine and 51/100 Do llars ($ 11,379.51) continuing thereafter through March 31, 2027 (unless this Lease is further extended or sooner terminated as provided for in the Lease, as amended herein), subject to the rent adjustments specified in subsection (B) below.”

4. Additional Rent. The following is hereby added to Section 4 of the Lease as subsection (F):
“F. Beginning April 1, 2022, and continuing through March 31, 2025, Lessee shall pay to Lessor the monthly sum of Two Thousand Seven Hundred Forty and 43/100 Dollars ($2,7 40.43) as compensation to Lessor for Leasehold Improvements and Commissions, as those terms are defined in the First Amendment to Airport Lease Agreement.”

5. Leasehold Improvements.
(a) At Lessor’s sole cost and expense, Lessor shall perform certain leasehold improvement work to the Demised Premises as such work is described in the attached Exhibit A (“Lessor’s Work”).

Lessor shall perform Lessor’s Work in a good and workmanlike manner and in accordance with all Legal Requirements, as defined below, the specifications approved by Lessee, and in accordance with the requirements set forth in Exhibit A. Lessor shall cause Lessor’s Work to be completed within three hundred and sixty-five (365) days after the Effective Date. Lessor’s Work shall be deemed completed when Lessor’s Work is fully performed. Once Lessor has commenced work on any item of Lessor’s Work described in Exhibit A , Lessor shall use c ommercially reasonable efforts to complete that item of work so as to minimize interference with Lessee’s ability to conduct business operations in the Premises. (b) Lessee hereby appoints Glenn Kirkland as Lessee’s representative to act on Lessee’s behalf in any matters relating to Lessor’s Work [contact: (510) 639-3714 or e -mail at [email protected] ].

In order to prosecute Lessor’s Work, Lessee must coordinate entry in advance with Lessee’s representative and on-site manager in order to minimize the interference that will occur by reason of such entries with respect to the business activities Lessee conducts in the building on the Demised Premises. Lessor may enter the Demised Premises during normal business hours to perform Lessor’s Work with advance notice of at least twenty-four (24) hours to Lessee’s on-site manager. If Lessor enters the Demised Premises on the authority of the foregoing, Lessor must not materially interfere with Lessee’s business operations. (c) Lessor shall complete Lessor’s Work in accordance with the terms of this First Amendment (including specifically the specifications as set forth in Exhibit A) and all applicable local, state or federal laws, statutes, regulations, code s or ordinances, building codes, governmental rules, 215

3 regulations and orders, and recorded covenants, conditions and restrictions affecting title to the Demised Premises (“Legal Requirements”).
(d) If Lessor fails to complete Lessor’s Work by three hundred sixty-five (365) days after the Effective Date and that failure continues for more than thirty (30) days after the date on which Lessee delivers written notice of the delinquency to Lessor, Lessee’s employees, agents and contractors may undertake the completio n of Lessor’s Work in accordance with all applicable Legal Requirements and the specifications applicable to Lessor’s Work. Lessor shall pay to Lessee within thirty (30) days after the date of Lessor’s receipt of Lessee’s invoice, together with reasonable evidence of costs and Lessee’s payment thereof, the full amount of the reasonable cost and expense that Lessee incurs in completing Lessor’s Work on the authority of this Section 5(d).

If Lessor fails to pay those amounts within th at thirty (30) day period, Lessee may offset the amount owed against Minimum Rent, Additional Rent and any other sums that become due to Lessor.

6. Broker Commissions. Landlord and Tenant represent each to the other that the only broker used in connection with this First Amendment was Clifford R. Fischer and Company, Inc. d/b/a Fischer & Company (“Fischer”), which is entitled to a commission which shall be paid in full by Landlord pursuant to a separate commission agreement. Landlord shall indemnify and def end Tenant from and against any claims, demands or actions brought by Fischer. Each party shall defend and indemnify the other from and against any claims, demands and actions brought by any broker or other finder to recover a brokerage commission or any o ther damages on the basis of alleged dealings with the indemnifying party contrary to the foregoing representation.

7. Ratification. Other than as specifically provided in this First Amendment, all terms and provisions of the Lease are ratified and confirmed and will remain in full force and effect without modification.

8. Counterparts. This First Amendment may be signed in multiple or counterpart copies, with signatures sent by facsimile or electronic transmission, each of which will be considered an original and which together form but one amendment to the Lease. (Signatures on following page)

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4 IN WITNESS WHEREOF, the parties have signed this First Amendment to Airport Lease Agreement as of, but not necessarily on, the date first above written.

TENANT LANDLORD

FEDERAL EXPRESS CORPORATION, CITY OF VISALIA,
a Delaware corporation a municipal corporation

By: By:

Name: Name:

Title: Title:

Date: Date:

Approved by Legal: cjm 04/05/2022

[FedEx Doc. No. 1602899]

R. Scott Peterson
MD Properties
04/08/2022
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A-1

EXHIBIT “A”
to that certain

First Amendment to Airport Lease Agreement

between

City of Visalia
(“Lessor”)

and

Federal Express Corporation
(“Lessee”)

dated ___________, 2022

Landlord’s Work

Lessor shall provide all labor and materials to complete the following scope of work, including, but not limited to, the temporary movement, disassembly, or relocation of furniture while work is underway , and in accordance with the terms and conditions set forth in Section 5 of this First Amendment. All work must be coordinated with and approved by Lessee’s representative (as designated in said Section 5) and Lessee’s on-site manager so as not to impede Lessee’s operations at the Premises.

The following items shall be completed within one hundred eighty (180) days after full execution of this First Amendment:

• Replace damaged Acrovyn® and touch up paint on the other walls in the Customer Service Area; • New interior paint throughout the office portions of the facility; • Replace carpet and wall base throughout the office portion of the facility; • Reseal all windows and replace blinds in the office portion of the facility; • Replace vinyl flooring in all four (4) restrooms;
• Replace countertops and cabinets in the breakroom;
• Install ten (10) exhaust fans in the warehouse’s sort area; • Replace the two (2) evaporative coolers which are rusted out and need replacement; • Replace or seal metal exterior and trim where necessary due to rusting and holes; • Paint the exterior of the building once the necessary repairs are complete; • Seal and restripe all paved areas should be sealed following repair to and restriped after repair to alligator cracking, potholes forming, and crack filling.

[CONTINUED]
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A-2

SPECIFICATIONS (applicable to all painting and flooring work):

1. Painting

Painting and finishing shall include all interior exposed items and surfaces throughout the demised premises. Pre-finished items are excluded from this scope such as roof deck, beams, and joists. All walls are to be prepared to receive finishes by the pat ching, spackling, and smoothing of any irregular surfaces and holes. Removing the wallpaper from the office walls is required (Acrovyn preparation as required) .

Prepare the walls for painting and adhere to guidelines below:

A. Interior office walls shall receive:

1. One primer coat Prime after removal of Vinyl Wall Covering (No painting over vinyl wall covering). Color: wht/Problock Alkyd Odorless B49w20

2. Office Walls: Sherwin Williams Super Paint Interior Satin “Fossil Gray” (formula 2 below)

B. Lobby/Customer Service Area is to be finished in accordance with FedEx standards as follows:

1. Ship Center/Customer Lobby (requires approval for specific site):

Sherwin Williams Argos B9W951 Harmony w/Eggshell Base Argos (7065) Cover Plates: Paint with regular paint as referenced above in Paragraph A.

NOTE: Zolatone no longer used.

C. Door Frames (interior metal):

1. Hollow Metal Frames color: Fed Ex Grey/DTM Alkyd B55w113 (formula 1 below.)

D. Doors (interior wood doors and windows):

1. Wood Doors and Windows color: clear/Wood Classics Clear Varnish A66f390

E. Restrooms:

1. Urinal Screens and Partitions color: white/Pro Class Alkyd Semigloss B33w221.

F. All interior steel columns shall be painted “safety yellow” to a height of 10 ft. Exterior bollards and ladders color: Safety Yellow/Industrial Enamel B54y37 (unless local codes require other color).

G. Warehouse: Warehouse Block Walls color: white/Waterbased Catalyzed Epoxy Gloss Sheen B70w200. (Painting only required if requested).

H. Exterior Painting:

1. Prep and repaint with matching color all exposed exterior metal items, including but not limited to doors, downspouts, handrails, lintels, window frames, stairs, ladders, fascia and parapet caps (excepting any pre -finished items in good condition) to a uniform and clean appearance.

Exterior: Dryvit Walls/Synthetic Stucco color: match/Exterior Super Paint Satin A89w51

Exterior: Metal and Wood color: match/Exterior Super Paint Satin A89w51 219

A-3

I. Doors (exterior metal)

1. Metal Frames color: Match existing color or Fed Ex Grey/DTM Alkyd B55w113(formula 1 below/unless local codes require other color) Formulas:

1. “FedEx Grey Formula”- DTM Alkyd B55w113
B1 4 oz 5/32 1/128
N1 60/32 1/128
R2 2/32 1/128
Y3 21/32 1/64
R3 5/32
L1 2/32

2. Sherwin Williams Super Paint Satin “Fossil Gray”
CCE*COLORANT OZ 32 64 128
B1 BLACK - 14 - -
R2 MAROON - 2 - -
Y3-DEEP GOLD - 14 - -
ONE GALLON “EXTRA WHITE”

2. Floor Finishes

Floor finishes for office areas and ship centers is described below. New vinyl cove wall base shall be installed where specified.

A. Carpet Flooring:

1. Offices: One of the following:
a. Interface SuperFlor, #603059 Anthracite. Contact: Christi Hitch 901-219-5746 [email protected]
b. Mohawk Lees – First Step 508 Charcoal Grey. Contact: Tony Simmons 901-246-9851 [email protected]
c. Shaw Path 549. Contact: Helen Balch Drinkard 901-240-9085 [email protected].

B. Resilient Wall Base: Rubber or heavy gage vinyl, top set cove design, height of 6 inches.

Color: – Johnsonite 6” vinyl cove (Charcoal) or 6” Roppe 123 Charcoal C. VCT Flooring: Armstrong Excelon
D. Restrooms: Armstrong Excelon 51911 Classic White or Excelon 52513 Cirque White E. Courier Check-In, Breakrooms, Hold Rooms and other locations – submit sample of tile specified for color selection

Note: For additional information and/or questions, contact Lessee’s Representative, Glenn Kirkland, at (510) 639-3714 or e-mail at [email protected].

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Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0204 Agenda Date: 6/6/2022 Agenda #: 5.

Agenda Item Wording:

Authorize the City Manager to award Request for Bids (RFB) 21-22-39, an annual contract for Boiler Maintenance at the Water Reclamation Facility (WRF) to ACCO Engineered Systems of Fresno, Ca. for a not to exceed annual amount of $30,000. This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms.

Deadline for Action: None
Submitting Department: Public Works
Contact Name and Phone Number:

Wyndi Ferguson, Interim Public Works Director, [email protected], 713-4186 Department Recommendation:

Staff recommends that the City Manager award an annual contract for Boiler Maintenance at the Water Reclamation Facility (WRF) to ACCO Engineered Systems of Fresno, Ca. for a not to exceed annual amount of $30,000. This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms.

Background Discussion:

The treatment processes utilized at the Water Reclamation Facility (WRF) includes stabilization of solids through anaerobic digestion. In order for this process to function, solids within the digestors must be heated to and kept at a temperature of 98-100 degrees Fahrenheit. To accomplish this, one 80HP Kewanee boiler, and two Fulton Vantage 77HP boilers (rated at 3 million BTU/hr each) are used to heat recirculated water. This hot water is pumped through a heat exchanger to heat the digester solids. A fourth smaller boiler is used in the heating system for the laboratory building.

While boiler-based heating systems are not commonly used to provide heat to buildings in this area, the exhaust and air flow requirements of a laboratory building make it a much more efficient method than typical systems.

In order to maintain reliability and meet Air Quality permit conditions, each of these boilers requires service on a monthly basis. In addition, periodic and incidental replacement of sensors, switches, tubes, etc. that are outside the monthly scope of services, is performed on a time and materials basis.

The contract for Boiler Maintenance had reached the five (5) year limit, therefore re-bidding the contract was required. On April 27, 2022, three (3) bids were received by Purchasing, with the results shown below.

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File #: 22-0204 Agenda Date: 6/6/2022 Agenda #: 5.

Company Location Monthly Fee
ACCO Engineered Systems Fresno, CA $1,439.66
Ram Mechanical Ceres, CA $5,200.00
AKP Technical, Inc San Pedro, CA $3,880.00
ACCO Engineered Systems has been utilized for other maintenance issues at the WRF and have demonstrated they are capable of performing the required work at the price bidded; therefore, it is staff’s recommendation that ACCO be awarded the contract.

Fiscal Impact:

Funding for these services is budgeted within the Wastewater Treatment Plant Enterprise Fund (431) operating budget.

Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to award an annual contract for Boiler Maintenance at the Water Reclamation Facility (WRF) to ACCO Engineered Systems of Fresno, Ca. for a not to exceed annual amount of $30,000. This is a one (1) year contract that may be renewed for four (4) consecutive one (1) year periods upon mutually agreed upon terms.

Attachments:

RFB 21-22-39
RFB 21-22-39 Bid Results
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RFB NO. 21-22-39
Boiler Maintenance (WCP)
Page i

CITY OF VISALIA
REQUEST FOR BID (“RFB”)

RFB NO. 21-22-39

ANNUAL CONTRACT

BOILER MAINTENANCE
(Water Reclamation Facility)

BIDS DUE NO LATER THAN 2:00 PM ON WEDNESDAY, APRIL 27, 2022

The City of Visalia expressly reserves the right to modify, or withdraw from, the process initiated and described herein. No rights shall be vested in any party, individual or entity by virtue of its preparation to participate i n, or its participation in, such process. The City expressly reserves the right to modify, for any reason, the schedule and any provision contained herein. The City reserves to itself the selection of winning respondent(s), if any, in the exercise of its sole discretion. No binding commitment shall arise on the part of the City to any respondent under this Request for Bid until and unless the parties sign documents of agreement that become effective in accordance with their terms. Responses to this RFB, however, shall be held firm by Respondent for at least ninety (90) days.

Advertisement Dates: March 31, 2022
April 7, 2022
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Page ii

TABLE OF CONTENTS

I. DEFINITIONS .................................................................................................. 1

II. INTRODUCTION .............................................................................................. 1

III. DEPARTMENT OF INDUSTRIAL RELATIONS REQUIREMENTS ......................... 1

IV. INSTRUCTIONS ............................................................................................... 5

V. SCOPE OF SERVICES/PROJECT ..................................................................... 5

VI. PRE-BID AND PRECONSTRUCTION MEETINGS ............................................... 7

VII. BID OPENING AND CONFIDENTIALITY ............................................................ 7

VIII. AWARD ........................................................................................................... 8

IX. PROTESTS/APPEALS ...................................................................................... 8

X. SPECIAL CONDITIONS .................................................................................... 9

XI. GENERAL CONDITIONS .................................................................................. 11

XII. POST AWARD RESPONSIBILITIES .................................................................. 14

EXHIBITS
A. BID FORM

B. CERTIFICATIONS, AFFIDAVITS, ASSURANCES, STATEMENTS, WAIVERS, AND

QUESTIONNAIRES WHICH MUST ACCOMPANY BID FORM
B-1. Equal Employment Opportunity Compliance Certificate B-2. Non-Collusion Affidavit
B-3. Worker’s Compensation Insurance Certificate
B-4. Anti-Kickback Compliance Certificate
B-5. Ownership Disclosure
B-6. Drug-Free Workplace Certificate

C. SAMPLE PROJECT AGREEMENT WITH ATTACHMENTS
ATTACHMENT 1 - GENERAL CONTRACT PROVISIONS
ATTACHMENT 2 - INSURANCE REQUIREMENTS

D. ADDITIONAL ATTACHMENTS
D-1. Rule 4304-Equipment Tuning Procedures for Boilers, Steam Generators, and Process Heaters
D-2. Rule 4307-Boilers, Steam Generators and Process Heaters D-3. Burner Specification
D-4. SJVAPCD Permit Conditions
D-5. Prevailing Wage Determinations

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Boiler Maintenance (WWTP)

I. DEFINITIONS

For the purposes of RFB NO. 21-22-39, the following terms shall have the meanings indicated:

1. “City” means the City of Visalia

2. “City Council” means the Council of the City of Visalia

3. "Bidder", "Vendor", "Supplier", “Consultant”, “Contractor ” and “Subrecipient” are used interchangeably throughout this invitation to mean the person, firm, or corporation or other entity submitting a Bid in response to the Request for Bid.

4. “Bid” and “Proposal” are used interchangeably to mean an individual’s or entity’s offer in response to this Request for Bid.

5. “RFB” means Request for Bid No. 21-22-39

II. INTRODUCTION

The City of Visalia Purchasing Division is soliciting Bids for an annual contract for routine maintenance and San Joaquin Valley APCO pe rmit requirements for two (2) Fulton Vantage, one (1) Kewanee and one (1) Peerless boiler located at the City’s Water Reclamation Facility, 7579 Avenue 288, Visalia.

The City of Visalia is seeking bids from Contractors with a proven record of experience in providing the services required by this Invitation to Bid. Bidders must submit five (5) references for work on projects similar in size and scope within the past three (3) years. The suc cessful bidder shall be responsible for providing all services n ecessary to fulfill the requirements o f this Invitation to Bid upon receipt of the City’s Notice to Proceed.

The initial contract term shall be for a twelve (12) month period and shall, at the City’s option and with the consent of the CONTRACTOR, be ex tended annually thereafter for four (4) consecutive one - year periods.

Under the requirements of Labor Code secti on 1782 passed by SB7 and in compliance with City of Visalia Ordinance 2014-13, this public works project is subject to State prevailing wages as specified in the specifications. See Section III for additional Department of Industrial Relations Requiremen ts which apply to this project.

In an effort to encourage local businesses t o pr ovide goods and services to the City, Council has enacted a local preference. The local preference will apply to a ny business that has a business address within Tulare County for a minimum of six months. A Post Office Box will not be accepted as a business address. The City reserves the right to request proof of Tulare County address.

The local preference for bids co nsists of a match preference in which a local vendor whose bi d is within 5% of the apparent low bidder will be given three (3) business da ys, from date notified, to match or beat the low bid. If there is more than one local vendor that is within the 5% ra nge, the offer goes to the local vendor that is closest to the low bid.

III. DEPARTMENT OF INDUSTRIAL RELATIONS REQUIREMENTS, Public Wor ks C ontractor Registration Program and Project Labor Agreements

Notice is hereby given that this maintenance contract is considered a public works contract and therefore, subject to DIR monitoring. All contractors and subcontractors bidding and performing work on Public Works Projects must:

1. Register on an annual basis with the California Department of Industrial Rela tions (DIR)

2. Effective April 1, 2015, furnish electronic payroll records for new projects to the Labor Commissioner

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No contract wil l be awarded unless that contractor and/or subcontractors are registered with the California Department of Industrial Relations (DIR). Bids by unregistered contractors may be rejected as non-responsive.

A contractor or subcontractor shall not be qual ified to bid on, be listed in a bid proposal, subject to the requirements of Section 410 4 of the Public Contract Code or engage in the performance o f any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorize d by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contr act Code, provided the contractor is registered to perform public work pursuant to Secti on 1725.5 at the time the contract is awarded.

If a project labor agreement (the term “project labor agreement” is defined in Public Contract Code 2500(b)(1) as a pre -hire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects and is an agr eement described in Section 158(f) of Title 29 of the United States Code) is used, then it must comply wit h the taxpayer protection provisions set forth in Public Contract Code section 2500(a). City of Visalia has no ordinances requiring or prohibiting such agreements.

The following statements and requiremen ts are to be included in all City of Visalia public work contracts that require the payment of prevailing wages in accordance with Californ ia Labor Code (CLC). This RFB document becomes a part of the public works contract for this project and therefore, the CLC contract language requirements are incorporated into the contract.

 As set forth in CLC section 1771.1(a), all contractors and subco ntractors must be currently registered and qualified to perfo rm p ublic work pursuant to CLC section 1725.5 to be qualified to bid, be listed in a bid proposal, or per form any public work for the City of Visalia .

Proof of registration for each contractor and subcontractor listed on the bid is required.

 As set fort h is CLC section 1771.4 (a)(1), notice is given that this project is a public work, subject to compliance monitoring and enforcement by the Department of Industrial Relations.

 As set forth in CLC section 1771.4(a)(2), the prime contractor is required by the City of Visalia to post job site notices, as prescribed by regulation. Information on required workpla ce postings may be found on the Department of Labor website at:
http://www.dir.ca.gov/wpnodb.html .

 The contractor and each subcontractor shall maintain all project records required under CLC for public works projects and preserve them for a minimum 3-year period to begin on the date a Notice of Completion is filed for the project. Please refer to the r etention period required for any grant or specialized project funding. Some funding sources require an ex tended time period for records retention.

 In accordance with CLC section 1773.2, the co ntractor is require d, by the City of Visalia , to post a copy of the determination of the Director of Labor Standards prevaili ng rate of per diem wages for each craft, classification, or type of worker needed to exe cute the contract at each job site.

 In accordance with labor code section 1776 and it s enforcement (1771.4(a)(3)) for initial contracts awarded on or after April 1, 2015, each project contractor and subcontractor shall:

o Maintain and furnish directly to the Labor Commissioner, bi-weekly, a certified copy of each weekly payroll as specified in section 1776 containing a statement of compliance with labor code sections 1771, 1811 and 1815, signed under penalty of perjury.

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o Make available or provide a certified copy of these payroll records and their supporting documentation within 10 days to all authorized parties upon written request and be subject to penalties for non-compliance as detailed in labor code section 1776.

o Inform the City of Visalia of the location of the payroll records kept in compliance with labor code section 1776(g) and notify the City of Visalia within 5 working days of any change in their location.

 The City of Visalia will comply with any prevailing wage monitoring and enforcement activi ties required by the labor compliance programs of the Departm ent of Industrial Relations including the withholding of contract payments in the amount of any underpayme nt of prevailing wage and applicable penalties as directed by the Department of Labor Sta ndards Enforcement in accordance with CLC section 1727(a). A ny amount withheld will be released as directed by the Labor Commissioner upon receipt of a certified copy of a final order no longer subject to judicial review in accordance with CLC section 1742(f).

 As set forth in labor code section 1775(b), the follow ing subcontractor provisions shall be included in any contract executed between the contractor and a subco ntractor for performance of work on this public work project:

o As set forth in CLC sectio n 1775(b)(1), any contract executed between a contractor and a subcontractor for the performance of work on a City of Visalia public works project shall include a copy of the provisions of Labor Code sections 1771, 1776, 1777.5, 1813, and 1815. These labor code sections must be included within or as attachments to the contract.

o As set forth in CLC section 1776, the subcontractor shall maintain and furnish directly to the Labor Commissioner, bi -weekly, a certified copy of each weekly payroll as specified i n section 1776 containing a statement of compliance with labo r co de sections 1771, 1776, 1811 and 1815, signed under penalty of perjury.

o As set forth in CLC section 1775(b)(2), the contractor shall monitor the payment of the specified general prevailing r ate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor.

o As set forth in CLC section 177 5(b)(3), upon becoming aware of the failure of the subcontractor to pay his or her worker s the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project.

o As set forth in CLC section 1775(b)(4), prior to making fin al p ayment to the subcontractor for work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. Prior to the release of retention to the contractor, the COV will require a copy of the affidavit(s) completed by each listed subcontractor.

 In accordance with CLC section 1777.5(e), prior to commencing work on a contract for public work; every contract or shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.

 Only apprentices, as defined in CLC section 3077, in training under apprenticeship standards approved by the Div ision of Apprenticeship Standards (DAP) and party to written apprentice agreements under CLC section 3070 -3098 may be employed at the apprentice wage rate on public works.

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 Unless exempted under CLC section 1777.5(j), a contractor working on a public works contract of $30,000 or more shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprentices hip standards (CLC 1777.5(n)). In no event shall the ratio be less than one hour of apprentice work for e very five hours of journeyman work.

 The prime contractor is responsible for compliance w ith the requirements of CLC section 1777.5 for all apprentice able occupations employed on the contract. As stated in 1777.5 (o), the apprenticeship requirement does n ot apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contract is less than thirty thousand dollars ($30,000).

 As stated in section 1777.7(e), the prime co ntractor will not be liable for any penalties assessed for violations of section 1777.5 i f they have complied with the following requirements:

o The contract executed between the contractor and the subcontractor for the performance of work on the public wor ks project shall include a copy of the provisions of section 1771, 1775, 1776, 1777.5, 18 13 and 1815. These labor code sections must be included within or as attachments to the contract.

o The contractor shall continually monitor a subcontractor ’s use of a pprentices required to be employed on the public works project pursuant to subdivision (d ) of section 1777.5, including, but not limited to, periodic review of the certified payroll of the subcontractor.

o Upon becoming aware of a failure of the subcontract or to employ the required number of apprentices, the contractor shall ta ke corrective act ion, including , but not limited to, retaining funds due to th e subcontractor for work performed on the public works project until the failure is corrected.

o Prior to m aking a final payment to the subcontractor for work performed on the public works project, the contractor shall obtain a declaration signed under pena lty of perjury from the subcontractor that the subcontractor has employed the required number of apprentices on the public works project.

 The prime contractor is required to provide a signed aff idavit declaring their compliance with California Labor Code sections 1771 (prevailing wage) and 1777.5 (apprenticeship) for all workers employed on the contract befor e final payment will be made on the contract by the City of Visalia.

Contract inclusion and/or attachments : The following item is required to be i ncluded either in the body of, as attachments to, or addendums of all public work contracts:

 As set forth in CLC section 1773, the City of Visalia shall obtain the general prevailing rate of per diem wages and the general prevailing rate for holiday and o vertime work in the locality in which the public work is to be performed for each craft, classification, o r type of worker needed to execute the contract from the Director of Industrial Relations . This will include the apprenticeship prevailing wage for a ll apprenticeable trades. In accordance with labor code section 1773.2, this information is to be included in the contract itself.

10 days before the closing date of the bid, the project manage r will review the prevailing wage rates included in any reque sts for bid proposals for updates and issue an addendum to notify interested bidders of any changes. Gene ral prevailing wage determinations made by the director of industrial relations for journeyman and apprentices may be found at:

http://www.dir.ca.gov/OPRL/PWD/index.htm and
http://www.dir.ca.gov/OPRL/PWAppWage/PWAppWageStart.asp

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IV. INSTRUCTIONS

1. Fill out attached Bid Form (Exhibit “A”) in ink or typewriting completely.

2. Cross out and initial mistakes in ink and place the correct response next to same.

3. Timely submit Bid in a sealed envelope addressed and marked as follows:

To: City of Visalia Purchasing Division
707 W. Acequia Avenue
Visalia, California 93291

From: Bidders Name & Mailing Address

Marked: Annual Contract for Boiler Maintenance
RFB NO. 21-22-39
Closing Date: Wednesday, April 27, 2022 at 2:00 p.m.

4. Submit each of the required Cert ifications, Affidavits, Statements and Questionnaires as well as optional waiver(s) to City with the sealed Bid. City will not consider Bids which are not accompanied by the required completed forms.

5. Inquiries: Instructions to Vendor, Specifications a nd Bid Forms may b e obtained by visiting our web site at visaliapurchasing.org or by calling (559) 713 -4334. However, to prevent misinterpretations, the Purchasing D ivision would prefer that all questions be sent by email to [email protected].

Questions regarding this RFB are due no later than Thursday, April 21, 2022

V. SCOPE OF SERVICES/PROJECT

Contractor shall prov ide all labor, materials, tools, equipment , and transportation required for the routine maintenance and San Joaquin Va lley APCO Permit requirements for tw o (2) Fulton Vantage boiler s, one (1) Kewa nee boiler and one (1) Peerle ss boiler located at the City of Visalia’s Water Reclamation Facility, 7579 Avenue 288.

Contractor and/or his/her employees must sign in at the Administrative Office upon entrance to the Water Reclamation Facility.

CONTRACTOR’S RESPONSIBILIES:

BOILERS
 Perform monthly inspections as stated below, and any San Joaquin Valley APCO permit requirements on two (2) Fulton Vantage boilers, one (1) Kewanee boil er and one (1) Peerless boiler. Make necessary repairs as needed with the cons ent of the maintenance supervisor or designated WRF staff. E mergency response time fo r a call out during and after working hours shall not be longer than 2 hours.
 All safety practices shall be followed according to OSHA standards. Contrac tor shall be responsible for clean -up and disposal of all used materials. All work shall be commensurate with the highest professional stand ards and shall be performed by experienced personnel. All work is to be scheduled 24 hour s in advance for monthly inspections by t he 10 th of each month and performed by the 21 st of each month . The hours available to the Contractor to perform scheduled work as described in this Bid is Monday through Friday, 7:00 am t o 3:00 pm, excluding holid ays. Contractor is to complete the work so as to minimize interference with other adjacent projects. 260
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 The Kewanee boiler is 80 HP 3360 CFH. The Fulton Vantage boilers are rated 77 BHP. 3,000,000 BTU/Hr. The Peerless boi ler is cas t iron unit model LC -05-WUP, rated at 615,000 BTU/Hr.
 A written r eport and printed combustion analysis , along with any recomme ndations for repairs, shall be submitted to the Maintenance Supervisor or designated WRF staff within 48 hours of completion of each inspection.
 Defective components found during an inspectio n shall be reported to the Maintenance Supervisor or designat ed WRF staff. Minor components replaced during scheduled inspections shall be installed at no addit ional labor cost. Al l components installed during an unscheduled inspection shall be provided o n a labor and material basis and listed as a line item on the monthly invoice . Contractor’s mark -up rate for materials shall not exceed 15%.

 The boiler units shall be maintained to factory standards and comply with and follow all district rules and permit requirements as issued by the San Joaquin Valley APCO.  The units shall be tuned at a minimum of two times per calendar year in which they operate, from four to eight months apart , by a technician that is qualified to the satisfaction of the San Joaquin V alley APCO in accordance with the proced ure described in Rule 4304 (Equipment Tuning Procedure for Boi lers, Steam Generators, and Process Heaters). [District Rule 4307]
 Any major repairs will be performed at time and material costs.  Contract shall also include the following:

1. A formal printed inspection checklist with normal operating parameters.

2. Contractor will provide all repair parts.

3. Emergency response time for a call out during a nd after worki ng hours shall not be longer than 2 hours.

 Work hours are between 7:00 a.m. to 3:00 p.m. Monday through Friday.

 Inspections will consist of the following:

Gas train

Monthly:

1. Inspect burner linkage; tightness, play, ball joints and butterfly valve.

2. Inspect and test mod motor; operation, voltage and amp. draw.

3. Inspect and test gas pressure switches, integrity of reset switch and voltage.

4. Inspect and test hydrometers; fluid leakage, voltage and amp. draw.

5. Gas pressure to burner checked and recorded.

6. Gas pressure to pilot checked and recorded.

7. Inspect and test gas shut off valves.

Burner
Monthly:

1. Inspect and test blower motor; voltage and amp draw.

2. Inspect and test transformer, voltage.

3. Inspect and test flame safeguard; flame rod/scanner signal and recycle.

4. Inspect flame igniter.

Semi-annual:

1. Inspect and clean pilot burner and orifice.

2. Inspect and clean burner head.

3. Inspect burner throat.

4. Clean fan inlet and fan wheel.
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Boiler Trim
Monthly:

1. Inspect and test all water controls.

2. Inspect and test aqua stat controls.

3. Inspect safety relief valves for leakage.

Semi-annual:

1. Lift safety relief valves with boiler under pressure.

2. Inspect thermal wells for integrity, replace thermal well conducting paste.

Annual:

1. Inspect water feeder internals.

2. Inspect Warrick probes.

3. Hydrostatically test boiler to safety valve settings.

Boiler Pressure Vessel
Semi-Annual: [to be done first week of October]

1. Open fireside for inspection, close and replace gasket.

2. Clean and inspect fire tubes.

3. Inspect tube sheet.

Annual: [to be done first week of October]

1. Inspect water side of boiler for scale and corrosion.

2. Perform freshwater flush to remove any accumulation of solids.

Circulation system
Monthly:

1. Sample water for T.D.S., hardness, ph. and water treatment residuals.

2. Inspect expansion tank; water level, sight glass for leakage.

3. Inspect and test airtrol fittings in expansion tank.

4. Take pressure readings at suction and discharge side of pump.

VI. PRE-BID AND CONTRACT MEETINGS

1. A Non - Mandatory Pre-Bid Meeting. A non-mandatory pre-Bid meeting has been scheduled for Wednesday, April 13, 2022 at 10:00 a.m. and will be held at the job site, 7579 Ave 288, Visalia, CA. Attendance at this meeting is not required to submit a Bid in response to th is RFB. Information regarding the project will be provided at that ti me. It shall be the responsibility of the Contractor to have acquired full knowledge of the job site, scope of work and any problems or difficulties that may affect the work proposed.

2. Post Award Meeting. Subsequent to the award of contract, the Contra ctor shall meet with the Project Manager prior to the start of work to d iscuss any problems or questio ns that may arise. Contractor shall contact the Proje ct Manager within ten (10) days of the date of the Notice to Proceed to arrange this meeting.

City Project Manager: Eric Oates
Department: Water Reclamation Facility

VII. BID OPENING AND CONFIDENTIALITY

1. Bid Opening. Bids shall be opened publicly in the presence of attendees, if any, on Wednesday, April 27, 2022 at 2:00 p.m. at 707 W Acequia, Visalia CA, City Hall.

The name of each Bidder and the amount of each Bid shall be open to public inspection at the Bid opening and after an award decision has been mad e. Other Bid information will not be available for public review during the evaluation phase. 262
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2. Bid Confidentiality. The City of Visalia favors full and open d isclosure of all Bid records. The City will no t expend public funds defending claims for access to, inspection of, or to be provided copies of any such records. By submitting a Bid, a Bidder agrees to in demnify and defend the City against all claims or a ctions brought against it to seek access to, or compel disclosure of, any records or documents in the City’s possession.

After the award, the C ity intends that its selection process will be open and publi c.

Respondents are advised that the California Pub lic Records Act (“PRA”) provides that any person may inspect or be provided a copy of any identifiable pub lic record or document that is not exe mpted from disclosure by the express provisions of the Act.

The Federal Freedom of Information Act (“FOIA”) con tains a similar provision. Each Bidder shall clearly identify any information within its Bid that it inte nds to ask the City to withhold as exe mpt under either the PRA or F OIA. Any information contained in a Bidder’s submission which the Bidder believe qualifies for exemption from public disclosure as “Proprietary” or “Confidential” must be identified as suc h at the time of first submission of Bidder’s Bid to this RFB. Any failure to identify information contained in a Bidder’s Bid to this RFB as “Propri etary” or “Confidential” shall constitute a waiver of Bidder’s right to object to the release of such info rmation upon request under either Act.

VIII. AWARD

1. Most Responsive, Responsible Bidder . A Contract (substantially similar to that attached hereto as Exhibit “C” with Attachments 1 -2) shall be awarded with reasonable promptness by appropriate written n otice. Award shall be made to the most responsive, responsible Bidder whose Bid meets the req uirements and criteria set forth in this RFB, price and other factors considered, and whose Bid is determined to result in the optimum economic advantage to the City. A responsible Bidder is one who has the capability, financial capacity and integrity to perform the contract. A responsive Bidder is one who co mmits to all of the material terms, for example, price, quantity, quality and delivery, of this RFB. Contractor must return a signed copy of the contract provided by the City with its A ward Notice to City within ten (10) working days of receipt thereof.

2. Reservation of Rights . The City reserves the right to reject any item or items in the Bid; to waive informalities, technical defects, and minor irregularities in Bids received; and to select the Bid(s) deemed most advantageous to the City.

IX. PROTESTS/APPEALS

Because it is essential that Bidders have confidence in the procurement procedures for soli citing and awarding contracts, it is th e policy of the City to offer Bidders the opportunity to appe al award of contracts. The following procedures shall apply in regard to appeals:

1. Any actual Bidder who is aggrieved in connection with this RFB or award of a contract hereunder may protest to the City of Visalia Purchasing Division in writing within five (5) working days after such aggrieved Bidder knows, should have reasonably known, or could reasonably be expected to know of the facts giving rise thereto; and

2. Should ident ify only the areas regarding bid contradictions, procurement errors, quotation rating discrepancies, legality of procurement cont ext, conflict of interest in the rating process and inappropriate or unfair competitive procurement g rievance regarding the Bid process.

3. The City’s Purchasing Division shall have the authority to settle and resolve each protest. The resolution will be provided to Bidder in writing within fi ve (5) working days of receipt of the appeal unless the Bidder is notified more time is required. 263
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4. Further levels of appeal may be made in accord ance with the appeals provision contained in Chapter 5 of the C ity’s “Purchasing and Contract Procedures” which is available through City’s Purchasing Division.

X. SPECIAL CONDITIONS

1. Project Administrative Issues

a. Complete Project. The successful Bidder shall be responsible for providing all materials, labor, equipment and services necessary to fulf ill the requirements of this RFB.

b. Quantities/Change Orders. The City reserves and shall hav e the right to make such changes to the work as may be necessary and desirable to complete the work originally intende d i n an acceptable manner. Unless other wise specified herein, the Project Manager shall be and is h ereby authorized to make such changes, in the work as may increase or decrease the originally awarded contract quantities and/or total contract cost.

Changes shall not invalidate the contract n or release the surety, and the Contractor agrees to accept p ayment for such changes as if the alte red work had been a part of the original contract. These cha nges which are for work within the general scope of the c ontract shall be covered by Change Order s issued by the City. Change orders for altered work shall include extensions of contract time wh ere, in the Project Manager’s opinion, such extensions are commensurate with the amount and difficulty of added work.

Excessive altered work shall be covered by su pplemental agreement that is subject to funding agency approval as applicable. If the City a nd the Contractor are unable to agree on a unit adjustment fo r any contract item that requires a supplemental agreement, the City reserves the right to terminate the contract with respect to the item and to make other arrangements for its completion.

c. Omitted Items . Project Manager is authorized to omit minor co ntract items.

Major items must be omitted by supplemental agreement.

d. Extra Work. Contractor is prohibited from doing extra work, unless authorized in writing by Project Manager before the work is done.

If the Project Manager authorizes Extra Work but the payment for the Extra Work has not been agreed to in writing prior to the work being completed, then Contractor shall submit to the Project Manager t he documentation required for a Change Order within forty -five (45) days of completing the Extra Wo rk. The Project Manager will submit a Change Order reque st for review and approval by the Change Order Committee. If the Contractor does not submit any documentation within that time period the Project Manager may move forward with issuing a Change Order to adjust the contract price.

e. Removal of Obstruct ions. Contractor shall remove and dispo se of all structures, debris or other obstructions of any ch aracter required for completion of the project. Any temporarily removed or relocated items shall b e replaced.

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f. Clean Up. Prior to acceptance and fina l payment, Contractor shall clean up the site of work, and any areas occupied by Contractor in conne ction with the project.

2. City-Contractor Relations

a. Project Manager’s Responsibility and A uthority. City will designate a Project Manager. All work shall be done under the general super vision of such Project Manager or his or her designee(s). T he Project Manager shall decide issues of quality and acceptability of materials, work performance, rate of progress of work, interpretation of drawings and specifications, and all questions related to fulfillment of the contract for the project. Project Manager shall not have control over ac ts or omissions of the Contractor, Subcontractors, their agen ts or employees.

b. Contractor/Contractor’s Superintende nt. Contractor shall bear all responsibility for, and have all control over, the construction means , methods, techniques, sequences, procedures and safety precautions or programs related to the project. Contractor may designate a superintendent.

c. Project Site/Existing Utilities and Structures.

Contractor shall take care to avoid, but shall be res ponsible for, all damage to existing structures, including, but not limited to, sewers, water servi ce, drains and culverts, underground utilities and the like.

e. Labor
(1) Workmanship. Workmanship sh all be equal to the best general practice of modern -day fabrication shops and good construct ion practice.

(2) Qualification. Contractor shall ensure th at each employee who works on this project is qualified t o p erform their assigned duty in a safe manner.

f. Control of Materials:
(1) Source of Supply and Quality of Materials Guarantee. All materials, parts and equipment supplied by the Contractor sha ll be new and of a quality equal to that specified. Mate rials which become unfit for use shall not be used for the project.

(2) Equivalent Materials. Trade names or manufacturer’s catalog information, where used, are a means of indicating kind, type, de sign, style, finish, durability or quality desired and ar e n ot intended to exclude or omit the pr oducts of any responsible manufacturer, if such products are equal in every respect to those speci fied. The burden of proof of compliance with the specificati ons is the responsibility of Contractor. City shall be t he sole judge as to the adequacy of any item for substitution.

(3) Manufacturer’s Directions. Manufactured articles, materials and equipment shall be applied, installed, connected, erected, used, cleaned and conditioned as directed by the manufacturer.

g. Storage of Materials. Materials sha ll be stored to ensure the preservation of their quality and fitness for the project.

3. a. Legal Responsibilities. It is the responsibility of Contractor t o comply with all local, state, and federal laws and regul ations which apply to this project. Thi s 265
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includes, but is not limited to, compliance with Uniform Building, Plumbing, Mechanical, Electric, and Fire Codes. Contractor shall provide a safe working environment in compliance with the Occupational Safety and Health Act, and California Health and S afety Codes. Additionally, Contractor shall secure all necessary permits, licenses, and similar requirements to carry out the project.

Contractor shall comp ly with all applicable labor laws and ensure against discrimination.

XI. GENERAL CONDITIONS

1. It is the policy of the City to provide equal opportunity to all candidates when selecting Bidders to provide public services. Bidders are expected to be eq ual opportunity employers.

The City hereby affirmatively e nsures that Minority Business Enterpris es and Disadvantaged Business Enterprises (DBE) will be aff orded full opportunity to submit proposals in response to this notice. Individuals and/or entities submitting bids/proposals to the City of Visalia will not b e discriminated against on the basis of race, religion, color, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, gender, gender identity or expression, sexual orientation, or military and vete ran status in any consideration leading to the award of contract.

No qualified disabled person sh all, on the basis of disability, be excluded from participating in, be denied the benefits of, or otherwise be subjected to discrimination under any program o r a ctivity that receives or benefits fr om Fede ral financial assistance.

Bidder shall provide to t he City a list of all instances within the last te n (10) years where a complaint was filed or pending against Bidder in a legal or administrative proceeding a lleging that Bidder discriminated again st its employees, subcontractors, vendors or suppliers. A description of the status or resolution of that co mplaint, including any remedial action taken is required.

2. Post-Closing Date Corrections are prohibited.

3. Bids will not be accepted unless si gned in ink (not typed) in the appropriate space(s) by an authorized officer or employee of the Bidder.

4. Bids must be submitted on or before the Closing Date. Any Bids received after the Closing D ate shall be retu rned, unopened, to the Bidder, provided the re quest number, opening date, and Bidder's return address are on the envelope.

5. Bids may be withdra wn prior to the Bid Closing D ate by writing to the Purchasing Division.

6. Telegraphic, telephonic, electronic and facsimile Bids and withdrawal requests will not be accepted.

7. Prices submitted are conside red accurate for a period of ninety (90) days and cannot be withdrawn after the Closing Date.

8. All Bids are the property of the City after submission.

9. City is not responsible for Bid errors and omissions.

10. Bids should be prepared in a straightforward, con cise manner. Information provided which was not specifically requested will be considered only in City’s discretion.

11. A written amendment or addenda issued by City’s Purchasing Division is the only method which should be relied on with respect to changes to the RFB. Respondent is 266
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responsible to contact City’s Purchasing Division prior to submitting a Bid to determine if any amendments were made to the RFB.

12. Any contract resulting from the RFB will be jo intly administered by the City’s Purchasing Division, and the Department requesting Bids.

13. Prior to c onducting business in the City of Visalia, a business tax certificate (license) must be obtained. Call (559) 713-4326 or email [email protected] for mo re information.

14. Bidder shall provide insurance as re quired by law and as indicated in the propo sed contract.

15. Bidder shall maintain all personn el files and p ayroll records for employees used to implement the proposed contract.

16. Bidder shall withhold, pay and report all taxes and issue W -2 forms at the end of each calendar year for employees used to implement the proposed contract.

17. Pursuant to the City’s Charter, all other things being equal, tie Bids shall be awarded to a local merchant to the extent qua lity and prices are equal. If neither is a local vendor, the Bid shall be awarded by the flip of a coin by the Purchasing Division in the presence of at least one witness.

18. The City may make such i nvestigation of the Bidder and information in the Bid as it determines necessary. This may include the collect ion of criminal history information, contractual and business associations and practices, e mployment hist ories and reputation.

19. All California agencies may purchase off the Proposal submitted at the sa me prices, terms, conditions and specifications. The City of Visalia shall incur no responsibil ity in connection with another agency’s purchase.

20. Each Bidder will be required to submit Certificatio ns, Af fidavits, Assurances, Statements and Questionnaires which are attached in Exhibit “B”.

21. The quantiti es given on the Bid Form and any re lated contract documents are approximate only. They are give n as a bas is for comparison of Bids. The City of Visalia d oes not expressly or impliedly , agree that the ac tual amount of work will correspond therewith but reserves the right to increase or de crease the amount of any class or portion of work, or to omit portion of the work, as the City deems necessary or advisable, at the prices Bid.

22. Bidders shall satisfy themselves by personal examination of the work site, specifications, plans, and other contract documents, and by any other means as they believe necessary, a s to the actual physical conditions, requirements, and difficulties under which the project must b e performed. The submission of a Bid shall be conclusive evidence that the Bidder has investigated, and is satisfied as to the conditions encountered, as to the character, quality, and quantiti es o f work to be performed, and the materials to be furnished, and as to the requirements of the RFB and the City. No allowance shall subsequently be made because of lack of such examination or knowledge.

23. All Bidders are required to make a Bid on t he c omplete Bid Form (Exhibit “A”) .

Contractor may be required to submit Proposals on alternate items. The City reserves the right to award to the contract based on the lowest combination or co mbinations of Proposal items and alternate proposed items.

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24. No mention shall be made in the Proposal of sales tax, use tax or any other tax, as all amounts Bid will be deemed and held to include any suc h taxes, which may be applicable.

25. Only on e Bid may be submitted as a “Prime Contractor” for the same w ork by any firm, individual, partnership, corporation or combin ation thereof. A Contractor submitting a Bid as a Prime Contractor may not also subm it sub -Bids to other competing Prime Contractors. Reasonable grounds fo r believing that any individual, firm, partnership, corporation or combination thereof is intereste d in more than one Proposal for the work contemplated will cause the rejection of all Proposals in which such individual, firm, partnership, corporation or combination thereof is interested. A Contractor w ho is not submitting a Bid as a Prime C ontractor m ay submit any number of sub-Bids to competing Prime Contractors.

26. The City of Vi salia is not liable for any costs incurred by Bidder in responding to th is Request for Bid.

27. The annual cont ract resulting from this invitation to bid will be administered by the Public Works Department. However , the City’s Purchasing Division shall be th e final judge concerning issues or matters rela ted to contract interpret ation or problems regarding the terms, conditions or scope of the contract.

28. The initial contract term shall be for a twelve (12) month period and shall, at the City’s option and with the consent of the CONTRACTOR , be extended annually thereafter for four (4) consecutive one-year periods. Contract shall begin no later than 15 days from the receipt of annual contract.

29. All prices quoted in response to this Invitation to Bid shall be fir m and fixed for twelve (12) months from the annual anniversary date of t he agreement. In order to prot ect the interests of the City and to give the vendor a reasonable b asis for bidding, a price adjustment feature is hereby incorporated into the specific ations. Prices bid by vendor may be adjust ed annually at time of contra ct renewal and upon mutual agreement of the parties to the contract to allow for price increases or decreases for labor and benefit rates, supplies and materials.

It will be the res ponsibility of the contractor to request a price adjustment and to provide all documentation necessary. The req uest f or price adjustment must be submitted to the Project Manager within the thirty (30) calend ar day period prior to the annual anniversary da te of the agreement. Requests filed after this time period will not be considered.

The unit prices for the ens uing c ontracts shall be based on the movement of the unadjusted figures of the U.S. Department o f Labor Consumer Price Index (CPI) for all Urban Consumers (CPI -U All Cities Average). The contract unit prices may be changed in an amount equal to th e percen tage o f m ovement for the most recent twelve-month period. In no instance shall the price increas e exceed 5%. The contract unit price changes as a result of this formula shall be binding on the contractor for the sub sequent contract year. The adju stment o f the unit bid price shall not be retroactive and shall apply only to changes incurred after approval.

30. This contract may be terminated without cause by the City, in whole or in part, by giving the Contractor fifteen (15) days written notice of the intent to ter minate whenever the City determines that termination is in the best interest of the City.

If the Contractor shall fail to provide service s or perform satisfactorily the work required by the terms and conditions of the contract, or materially breaches any of its obligations under this agreement the City may terminate the contract, in whole or i n part by written notice. Termination shall tak e effect ten (10) calendar days after the date of mailing said termination notice.
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Any assignment, subletting or transfer of the interest of the contractor, either in who le or in part, without the written co nsent of the City shall be cause for the City to immediately terminate the agreement for default.

Notwithstanding any ot her provisions of this agreemen t, this a greement may be terminated by the City upon a single violation of this agreement.

XII. POST AWARD RESPONSIBILITIES

1. Written Contract with City. A written agreement in a form simila r to that attached to this Request for Bid as Exhibit “C” with Attachm ents 1 -2 must be entered into between the City and the Con tractor to whom the project is awarde d. The Agreement forms the basis for the contra ctual obligation between the parties regard ing the project. A contract w ill be provided with the Notice of Award and must be executed and returned to City within ten (10) working days of the date of award no tification unless otherwise agreed.

2. Post-Award Responsibilities. Upon execution of the Ag reement between the City and the Contractor, the Contractor s hall immediately report all changes in its Articles of Incorporation, By-Laws, or Tax-Exempt status to the City.

3. Insurance. Contractor shall obtain an d maintain the minimum insurance coverage outlined Exhibit “C” , Attachment 2. Contractor shall provide evidence of suc h insurance to City’s Purchasing Division prior to commencement of work.

4. Required Bonds: NONE

Upon determination by the City that a c ontract has been entered and Contractor has provided all of the information that it is required to provide pursuant to this RFB, City will issue, in writing, a notice to proceed on the project to Contractor.

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Bidding Agency: _________________
EXHIBIT “A”

BID FORM
RFB NO. 21-22-39
Project: ANNUAL CONTRACT FOR BOILER MAINTENANCE

TO: THE CITY OF VISALIA PURCHASING DIVISION:

In compliance with the City’s Notice Invitin g Sealed Bids No . 21-22-39 dated: __________, the undersigned BIDDER hereby proposes t o furnish all materials, equipment, tools, labor appurtenances and incidentals required for the above stated project as set forth in the RFB, including all Exhibits and related contract documents therefore, and to perform all work in the manner and time prescribed therein.

BIDDER declares that th is Bid is based upon careful e xamination of the work sit e, instructions to BIDDERs, and the contract requirements. If this Bid is accepted for award, BIDDER agrees to enter into a contract with CITY at t he unit and/or lump sum prices set forth in the following Bid Schedule.

BIDDER understands that a Bid is required for the entire work and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. It is agreed that all prices bid inclu de all appurtenant expenses, taxes, royalties, and fees. All Bids will be checked for accuracy. In the case of discrepancies in amounts bid, unit prices shall gover n over extended amounts and words shall govern ov er figures.

BIDDER hereby agrees to execu te a contract within ten (10) working d ays, or such further time as may be allowed in writing by the Purchasing Division, after receiving notification of the acceptance of this Bid, and it is hereby mutually unders tood and agreed that in case the BIDDER do es not, said Purchasing Division may pr oceed to award the con tract to others.

BIDDER agrees to commence the work on the start d ate agreed between BIDDER and Project Manager, only after the contract is fully execut ed and Notice to Proceed has been issued.

BIDDER further declares that he/she h as not either directly or indirectly entered into any agreement, participated in any coll usion, or otherwise taken any action in restraint of free competitive bidding in connection with said bid.

Bid Award shall be b ased on the Lowest Total Monthly Cost. The quantities given on the Bid Form and any related contract documents are estimates only. They are given as a basis for comparison of Bids. The City of Visalia does not, expressl y or impliedly agree that the actual amount of work will correspond therew ith and reserves t he right to increa se or decrease the amount of any class or portion of work, o r to omit portion of the w ork, as the City deems necessary or advisable, at the prices Bid.

BIDDER has read and hereby agrees to the conditions stated in this Bid by affixing his/her signature on the Bid Form.

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Item

Description: Maintenance of two (2)
Fulton Vantage, one (1) Kewanee
and one (1) Peerless boiler per RFB
21-22-39
Monthly
Maintenance
cost per unit
(A)
Quantity

(B)
Total Cost

(A x B)
1 Two (2) Fulton Vantage Boilers $__________ 2 $____________ 2 One (1) Kewanee Boiler $_________ 1 $____________
3 One (1) Peerless Boiler $_________ 1 $____________

TOTAL MONTHLY COST
(Total Items 1-3)
$______________
_

Item Extra Work Hourly Rate
1 Unscheduled Repair Work During Business
Hours $________________
2 Emergency After Hours Call Out Work $________________

(1) _______________________________________________________________________________________________ Bidding Firm

(2) ________________________________________________________________________________________________ Corporation, Partner, Joint Venture

(3) ________________________________________________________________________________________________ Business Address City State Zip Code

________________________________________________________________________________________________ Telephone Number Fax Number

________________________________________________________________________________________________ E-mail Address

(4) ________________________________________________________________________________________________ Signature of Authorized Person (Date)

________________________________________________________________________________ Type or Print Authorized Person’s Name

PLEASE SEE THE FOLLOWING INSTRUCTIONS REGARDING SIGNATURE

(1) If the BIDDER is an individual, enter name here in style used in business; if a joint venture, exact name of entities join ing in the venture; if a partners hip, the correct trade styl e of t he partnership; if a corporation, the exact name of the corporation.

(2) If BIDDER is other than an individual, identify he re i ts character, i.e., joint venture, partnership, corporation, i ncluding the state of incorporati on. If BIDDER is an indivi dual operating under a trade name, state “an individual dba (trade name in full)”.

(3) State on this line, the address to which a ll c ommunications and notices regarding the Bid Proposal, and any contract awarded thereunder, are to be addressed.

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(4) If BIDDER is a joint v enture, signature must be by one of the joint v enturers, and if one or both of the joint venturers is a partnersh ip o r a corporation, each participating partnership must sign by a general partner, and each corpor ation by an authorized offi cer or employee; if a partnership, by a general partner; if a co rporation, by an authorized officer or employee. The title of the person signing must appear after his/her signature. Where BIDDER is a partnership or corporation, the names of all other gen eral partners, or the president or secretary of the corporation and their business addresses must be shown below.

Note: All names must be typewritten under written signature. All Addresses mu st be complete with street number, city, state and zip code.

CONTRACTOR’S PERMIT INFORMATION

License Number: __________________________________________ License Classification: _____________________________________ Expiration Date: ___________________________________________

CITY OF VISALIA BUSINESS TAX CERTIFICATE NO.: ___________________________________________ A City Business Tax Certificate (License) is not required to submit a bid; ho wever, vendor is required to obta in a City License prior to commencement of work . Contact the Business Tax Division for clarification of questions at (559) 713-4326 or [email protected].

Federal Tax I.D. No.: ____________________________________________________

SUBCONTRACTORS
The undersigned hereby desi gnates below for the project, opposite various portions of the work, the names and locations of the places of business of each subcontractor who wi ll perform work or labor in an amount in excess of one -half of one percent (1/2 of 1%) of the of the total bi d. All work not listed below shall be per formed by th e undersigned BIDDER. It i s understood that the BIDDER, if awarded the contract, shall not s ubstitute any subcontractor in place of the subcontractors h erein designated without the approval of the Project Manager.

___________________________________________________________________________________________________ Bidder’s Signature Date

___________________________________________________________________________________________________ Printed Name

Bidding Agency______________________________
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SUBCONTRACTOR INFORMATION & TRADE CLASSIFICATION (CIRCLE ALL THAT APPLY)

1. Subcontractor Name:

Asbestos

Boilermaker

Bricklayers

Carpenters

Carpet/Linoleum

Cement Mason

Drywall Finisher

Drywall/Lathers

Electricians

Elevator Mechanic

Glaziers

Iron Worker

Laborers

Millwrights

Operating
Engineers

Painters

Pile Drivers

Pipe Trades

Plasterers

Roofers

Sheet Metal

Sound/Comm

Surveyors

Teamster

Tile Worker
Business Address:

Email Address:

CSLB # Expires:

DIR Registration #

2. Subcontractor Name:

Asbestos

Boilermaker

Bricklayers

Carpenters

Carpet/Linoleum

Cement Mason

Drywall Finisher

Drywall/Lathers

Electricians

Elevator Mechanic

Glaziers

Iron Worker

Laborers

Millwrights

Operating
Engineers

Painters

Pile Drivers

Pipe Trades

Plasterers

Roofers

Sheet Metal

Sound/Comm

Surveyors

Teamster

Tile Worker
Business Address:

Email Address:

CSLB # Expires:

DIR Registration #

3. Subcontractor Name:

Asbestos

Boilermaker

Bricklayers

Carpenters

Carpet/Linoleum

Cement Mason

Drywall Finisher

Drywall/Lathers

Electricians

Elevator Mechanic

Glaziers

Iron Worker

Laborers

Millwrights

Operating
Engineers

Painters

Pile Drivers

Pipe Trades

Plasterers

Roofers

Sheet Metal

Sound/Comm

Surveyors

Teamster

Tile Worker
Business Address:

Email Address:

CSLB # Expires:

DIR Registration #

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Bidding Agency______________________________

4. Subcontractor Name:

Asbestos

Boilermaker

Bricklayers

Carpenters

Carpet/Linoleum

Cement Mason

Drywall Finisher

Drywall/Lathers

Electricians

Elevator Mechanic

Glaziers

Iron Worker

Laborers

Millwrights

Operating
Engineers

Painters

Pile Drivers

Pipe Trades

Plasterers

Roofers

Sheet Metal

Sound/Comm

Surveyors

Teamster

Tile Worker
Business Address:

Email Address:

CSLB # Expires:

DIR Registration #

If more space is needed to list addit ional subcontractor and trade classifications, please list remaining subcontractors on a separate sheet of paper (providing all of the requested information for each subcontractor) and submit with Bid.

REFERENCES
The following are the names, addresses, a nd telephone numbers f or at least five (5) public agencies for which BIDDER has performed work similar in size and scope within the past three (3) years.

Company Name Address Tel. No. Contact

1._________________________________________________________________________________________________

2._________________________________________________________________________________________________

3._________________________________________________________________________________________________

4._________________________________________________________________________________________________

5._________________________________________________________________________________________________

DESIGNATION OF SURETIES
The following are the names , addresses, and telephone numbers for all brokers a nd suretie s from whom BIDDER intends to procure insurance.

Company Name Address Tel. No. Type

___________________________________________________________________________________________________

___________________________________________________________________________________________________

___________________________________________________________________________________________________

___________________________________________________________________________________________________

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EXHIBIT “B-1”

EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE CERTIFICATE
(EXECUTIVE ORDER 11246)

To Accompany Bid Form

Equal Opportunity Clause
Unless exem pted by rules, regulations or orders of the Secretary of Labor issued pursuan t to Executive Order s 1092 5, 11114 or Secti on 204 of Executive Order 11246 of September 24, 196 5, during the performance of each contract with the City of Visalia, the BIDDER agrees as follows:

1. The BIDDER will not discriminate against any employee or applicant for employment because of race, co lor, religion, gender, national origin or political affiliation. The BIDDE R will take affirmative action to ensure th at a pplicants are employed, and that employees are treated during employmen t, without regard to their race, color, religion, gender, natio nal origin or political affiliation. Such action sh all include, but not be limited to, the following:
employment upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The BIDDER agrees to post in conspicuous places, available to em ployees and applicants for employment, notices to be provi ded by the contracting officer settin g forth the provisions of this nondiscrimination clause.

2. The BIDDER will, in all solicitati ons or advertisements f or employees, placed by or on behalf of the BIDDER, state tha t all qualified applicants will receive consideration for employment without regard to race, color, religion, gender, national origin or political affiliation.

3. The BIDDER will send to each la bor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or the workers’ repres entative of the BIDDER’s commitments under Section 202 of Executiv e Order 11246 of September 24, 1965, and shall post copies of the notice on conspicuous places available to employe es and applicants for employment.

4. The BIDDER will comply with all prov isions of Executive Order 11246 of September 24, 1965, and the rules, regulations and relevancy orders of the Secretary of Labor.

5. The BIDDER will furnish al l information and re ports required by Execu tive Order 11246 of September 24, 1965, and by the r ules, regulations and r elevant orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, r ecords and accounts by the contracting agency and the Sec retary of Labor for pur poses of investigation to ascertain compliance with such rules, regulations and orders.

6. In the event of the BIDDE R’s non-compliance with the non -discrimination clauses of this subcontract or with any of such rules, regulations o r orde rs, this subcontr act may be canceled, terminated or suspended, in who le, or in part and the BIDDER may be declared ineligible for furth er government contracts in accordance with the procedures authorized in accordance with Executi ve Order 11246 of Se ptember 24, 1965, and s uch other sanctions may be imposed and remedies invo ked as provided in Exec utive Order 11246 of September 24, 1965, or by rule, regulation or order of the Secretary of Labor, o r otherwise provided by law.

7. The BIDDER will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempte d by rules, regulations or orders of the Se cretary of Labor issued pursuant to Section 204 of Executi ve O rder 11246 of September 24, 1965, so that such provis ions w ill be binding up on each SUBBIDDER or vendor. The BIDDER will take such action with respect to any subcontract or purchase order as th e contracting agency may direct as a means of enforcing su ch p rovisions inc luding sanctions for non-compliance. 275
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Provided, however, that i n the event the BIDDER becomes involved in, or is th reatened with litigation with a SUBBIDDER or vendor as a result of such direction by the contracting agency, the BIDDER may request the United States to enter into such litigation to protect the interest of the United States.

Company: ______________________________________________

Business Address: ______________________________________________

Signature: ______________________________________________

Name of Signing Official: ______________________________________________

Title of Signing Official: ______________________________________________

Date: ______________________________________________

Company Seal:
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EXHIBIT “B-2”

NON-COLLUSION AFFIDAVIT
To Accompany Bid Form

STATE OF CALIFORNIA )
) ss

CITY OF VISALIA )

_________________________, being first duly sworn, deposes and says that he or she is _ ________ of __________ the party making the foregoing Bid; that the Bid is not made in the interest of, or on behalf of, any undisclos ed person, partnership, company, association, organi zation, or corporation ; that the Bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicite d any other BIDDER t o put in a false or sham B id, and has not d irectly or indirectly colluded, conspired, connived, or agreed with any BIDDER or anyone else to put in a sham Bid, or that anyone shal l refrain from Bidding; that the BIDDER h as not in any man ner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the Bid price of the BIDDER or any othe r BIDDER, or to fix any overhead, profit, or cost element of the Bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that a ll statements contained in the Bid are true; and, further, that th e BIDDER has not, directly or indirectly, submitted his or her Bid price or any breakdown thereof, or the contents thereof, or divulged in formation or data relative thereto, or paid, and wil l n ot pay, any fee to any corporation, partnership, company associ ation, organizati on, bid depository, or to any member or agent thereof to effectuate a collusive or sham Bid.

Company: ______________________________________________ Business Address: ______________________________________________ Signature: ______________________________________________ Name of Signing Official: ______________________________________________ Title of Signing Official: ______________________________________________ Date: ______________________________________________

Company Seal:

State of California

County of ________________________

On this _____ _____ day of _______ ________before me, ___________________________________________, a Notary Public, personally ap peared ________________ ____________________________,who proved to me o n the basis of satisfactory evidence to be the person( s) w hose name(s) i s/are subscribed to the within instrume nt and acknowledged to me that he/she/they executed the same in his/her/the ir authorized capacity(ies), and that by his/her/their signature(s ) on the instrumen t the person(s), or the entity upon beha lf o f which the pe rson(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of Califor nia that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

Signature __________________________________ (Seal)

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EXHIBIT “B-3”

WORKERS’ COMPENSATION INSURANCE CERTIFICATE
(CALIF. LABOR CODE § 3700)

To Accompany Bid Form

STATE OF CALIFORNIA )
) ss

CITY OF VISALIA )

I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisio ns b efore commenci ng the performance of the work under this contract.

Company: ______________________________________________

Business Address: ______________________________________________

Signature: ______________________________________________

Name of Signing Official: ______________________________________________

Title of Signing Official: ______________________________________________

Date: ______________________________________________

Company Seal:

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EXHIBIT “B-4”

CITY OF VISALIA
Ownership Disclosure for Contractors and
Consultants
To Accompany Proposal

NAMES OF PRINCIPALS, PARTNERS, AND/OR TRUSTEES:

Firm Name: _______________________________

Firm Address: ____________________________

List the names of all princip als, partners, and/or trustees. For corporations provide n ames of officers, directors and all s tockholders owning m ore th an 1 0% equity int erest in corporation:

Submitted by: Name __________________________________________________________ Date ___________________________________________________________

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EXHIBIT B-5

To Accompany Bid/Proposal

STATE OF CALIFORNIA

DRUG-FREE WORKPLACE CERTIFICATION
STD.21 (REV.12-93)

CERTIFICATION
I, the official named below, hereby swear that I am duly authorized le gally to bind the contractor or grant recipient to the certification described below. I am fully aware that this certification, executed on the date below, is made under penalty of perjury under the laws of the State of California.

CONTRACTOR/BIDDER FIRM NAME

FEDERAL ID NUMBER
BY (Authorized Signature)

DATE EXECUTED

PRINTED NAME AND TITLE OF PERSON SIGNING TELEPHONE NUMBER (Include Area Code)

( )
TITLE

CONTRACTOR/BIDDER FIRM’S MAILING ADDRESS

The contractor or grant recipient named above hereby certifies compliance with Government Code Section 8355 in matters relating to providing a drug-free workplace. The above named contractor or grant recipient will:

1. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a).

2. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b), to inform employees about all of the following:

(a) The dangers of drug abuse in the workplace,
(b) The person’s or organization’s policy of maintaining a drug-free workplace, (c) Any available counseling, rehabilitation and employee assistance programs, and (d) Penalties that may be imposed upon employees for drug abuse violations.

3. Provide as required by Government Code Section 8355©, that every employee who works on the proposed contract or grant:
(a) Will receive a copy of the company’s drug-free workplace policy statement, and (b) Will agree to abide by the terms of the company’s statement as a condition of employment on the contract or grant.

4. At the ele ction of the contractor or grantee, from and after the “Date Executed” and until ____________ (NOT TO EXCEED 36 MONTHS), the state will regard this certificate as valid for all contracts or grants entered into between the contractor or grantee and this state agency without requiring the contractor or grantee to provide a new and individual certificate for each contract or grant. If the co ntractor or grantee elects to fill in the b lank date, then the terms and conditions of this cer tificate shall have the sa me force, meaning effect and enforceabil ity as if a certifica te were separately, specifically, and individually provided for each contract or grant between the contractor or grantee and this state agency.
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EXHIBIT “C”
S A M P L E (does not need to be submitted with Bid/Proposal)

ANNUAL CONTRACT FOR BOILER MAINTENANCE
(WATER RECLAMATION FACILITY)
(City of Visalia Bid No. 21-22-39)

This Agreement, entered i nto an d eff ective this ________ day of ________________, 20 22 [“Effective Date”], by and between the City of Visalia, hereinafter referred to as the “CITY”, and ____________________________ hereinaft er referred to as the “CONTRACTOR”, “ BIDDER”, or “SUBRECIPIENT”.

R E C I T A L S

WHEREAS, CONTRACTOR is an ____________________ (i nsert individual or entity type) with a primary business address of ____________________ and SSN or EIN: ____________________; and

WHEREAS, CITY is a municipal corporation and Charter Law City; and

WHEREAS, City of Visalia reviewed and evaluated response s to the Bid and determine d to award an contract to CONTRACTOR for the Annual Project; and

WHEREAS, CONTRACTOR represents it is licensed, q ualified and willing to complete the Pro ject pursuant to terms and conditions of this Agreement.

NOW, THEREFORE, CITY and CONTRACTOR agree as follows:

1. TERM:

The term of this Agree ment shall commence on the Effective Date and expire upon completion of all obligations of the parties, unless earlier terminated by the parties. The initial contract term shall be for a tw elve (12) month period and shall, at the City’s option and with th e consent of the CONTRACTOR , be extended annually thereaf ter for four (4) consecutive one -year periods. "Additionally, t his A greement may be terminated for convenience. In the event of ter mination or expiration of this Agreement, CONTRACTOR shall transfe r to CITY any funds a nd/or accounts receivable on hand attributable to the use of CITY funds.

2. ATTACHMENTS INCORPORATED:

The f ollowing are attachments for this Agreement. Said attachments a re incorporated into this Agreement as if included in full in the body:

ATTACHMENT NO. DESCRIPTION OF ATTACHMENT
Attachment 1 General Contract Provisions
Attachment 2 Insurance Requirements
Attachment 3 City of Visalia Bid 21-22-39, Annual Contract for Boiler Maintenance Attachment 4 CONTRACTOR’s bid in response to Bid No. 21-22-39

3. CONTRACTOR SCOPE OF SERVICES and COMMITMENTS*:

CONTRACTOR shall provide the following services f or the stated compensat ion on or before the stated completion dates (“Scope of Services”):

All work described in Scope of Services in Bid No. 21-22-39.

4. CITY COMMITMENTS:

CITY shall perform the following tasks on or before the stated completion dates:

TASK COMPLETION DATE
Pay Contractor as work is completed and invoiced As requested by Contractor 281
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