Agenda packet — Visalia City Council, April 17, 2023 (part 1 of 3)

Visalia City Council
707 W. Acequia
Visalia, CA 93291
Visalia City Council
City Council
Meeting Agenda - Final
Mayor Brian Poochigian
Vice Mayor Brett Taylor
Council Member Steve Nelsen
Council Member Emmanuel Hernandez Soto
Council Member Liz Wynn
City Council Chambers7:00 PMMonday, April 17, 2023

ROLL CALL
CALL TO ORDER WORK SESSION - 4:00 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. NEW EMPLOYEE INTRODUCTIONS:

PUBLIC WORKS:

Jorge Maciel
Jeff Vandertuig
Jason Castro
David Kersey
Griselda Haro
23-0139

2. Review Fiscal Year 2022/23 mid-year financial report with recommended budget appropriations.
23-0080

3. Authorization to continue discussions with the Tulare County Regional Transit Agency regarding entering into a ‘Micro Transit Pilot’ partnership between The City of Visalia and the Tulare County Regional Transit Agency (TCRTA).
23-0117

4. Receive update report from the Tulare County Economic Development Corporation (TCEDC) and consider membership for FY 23/24 in the amount of $50,000.
23-0073

Page 1 of 5 ends

1 City Council Meeting Agenda - Final April 17, 2023
ADJOURN TO CLOSED SESSION - 6:00 PM (Or, immediately following Work Session)
CALL TO ORDER REGULAR SESSION - 7:00PM

PLEDGE OF ALLEGIANCE

ITEMS OF INTEREST

SPECIAL PRESENTATION

1. Visalia National Junior Basketball 8th Grade All Stars - National Tournament Champions
23-0141

2. Proclamation by the Visalia City Council proclaiming April 19, 2023 as Arbor Day in the City of Visalia, urging all citizens to support efforts to plant trees and protect our woodlands and forests. 23-0068

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. 23-0066

2. Request authorization to file a Notice of Completion for the Fire Station 55 Roof Repair Project. Project No.
1420-72000/CP0250-999.
22-0452

Page 2 of 5 ends

2 City Council Meeting Agenda - Final April 17, 2023

3. Authorize the City Manager to award a sole source contract to AMCS Group, Inc. in the amount not to exceed $505,835 for the software integration, hardware upgrade and maintenance of twenty (20) on-board computers in Solid Waste front-load commercial trucks, including a 10-year maintenance contract comprised of an initial five (5) year term and five (5) additional 1-year renewal options. Also, authorize the appropriation of $61,936 for FY 22/23, and $54,165 for FY 23/24 from the Solid Waste Enterprise Fund (441).
23-0088

4. Request to Authorize the City Manager to file Notice of Completion for the Battery Backup System & Traffic Signal Preemption Project. (Project Numbers 3010-72000/CP0226-999 &
3010-72000/CP9531-999)
23-0105

5. Authorize the appropriation of up to $35,000 for the Rawhide Retaining Wall Repair Project from the General Fund; to complete structural engineering design work, material testing, and for staff time.
23-0120

6. Authorization to submit an allocation request in the amount of $411,201 to the California Department of Transportation Low Carbon Transit Operations Program (LCTOP) for operating funds to continue funding V-LINE operations and approve Resolution No. 2023-09 (required). 23-0123

7. Authorization for the City Manager to enter into an agreement with California Vanpool Authority (CalVans) to provide vanpool service on behalf of Visalia Transit for a subsidy of $ 300 per vanpool per month not to exceed $300,000 annually for one (1) single year term and authorize a not to exceed amount payment of $ 45,000 for the past four months.
23-0125

8. Authorize the City Manager to submit a grant application to the Clean California Local Grant Program.
23-0126

9. Authorize the City Manager to enter a contract with Central Cal Waterworks to perform as Chief Plant Operator at the City of Visalia Water Reclamation Facility (WRF). This is a one ( 1) year contract that may be renewed for four ( 4) consecutive one ( 1) year periods upon mutually agreed upon terms, and an annual not to exceed amount of $104,000.
23-0130

10. Authorize the City Manager to amend the not to exceed amount of the contract with Denali Water Solutions for the removal and disposal of biosolids produced at the Visalia Water Reclamation Facility from $ 220,000 to $ 280,000 and appropriate an additional $83,500 from the Wastewater Fund (431).
23-0133

11. Consider confirmation of a letter of support for Tulare Irrigation District’s request for funding for the Seaborn Reservoir Project. 23-0137

Page 3 of 5 ends

3 City Council Meeting Agenda - Final April 17, 2023

12. Authorize staff to apply for Homekey Round 3.0 not to exceed $15 million to assist with the development and operation of the Majestic Project to convert the Majestic Motel into permanent supportive rental housing upon the completion of the application by the partner agency to fully comply with the grant and City requirements. 23-0093

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. Conduct a second Public Hearing to approve and adopt the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME Investment
Partnership American Rescue Plan Program (HOME-ARP)
Allocation Plan Amendment for the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and HOME-ARP activities and projects.
23-0083

2. Conduct a second Public Hearing to approve and adopt the proposed U.S. Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program (NSP1) Substantial Amendment to provide an estimated $120,000 for the funding of First Time Homebuyer loans for five single-family homes constructed at NW 5th Avenue and N Court Street.
23-0121

CLOSED SESSION REPORT

ADJOURNMENT

Page 4 of 5 ends

4 City Council Meeting Agenda - Final April 17, 2023

1. UPCOMING CITY COUNCIL MEETINGS:

Monday, May 01, 2023 at 7:00 p.m. at 707 W. Acequia
Monday, May 15, 2023 at 7:00 p.m. at 707 W. Acequia
Note: Meeting dates/times are subject to change, check posted agenda for correct details.

In Compliance with the American Disabilities Act, if you need special assistance to participate in meetings call (559) 713-4512 48-hours in advance of the meeting. For Hearing Impaired - Call (559) 713-4900 (TTY) 48-hours in advance of the scheduled meeting time to request signing services.

Any written materials relating to an item on this agenda submitted to the Council after distribution of the agenda are available for public inspection in the Office of the City Clerk, 220 N. Santa Fe Street, Visalia CA 93292, during normal business hours. 23-0119

Page 5 of 5 ends

5 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0139 Agenda Date: 4/17/2023 Agenda #: 1.

Agenda Item Wording:

NEW EMPLOYEE INTRODUCTIONS:

PUBLIC WORKS:

Jorge Maciel
Jeff Vandertuig
Jason Castro
David Kersey
Griselda Haro
Visalia City Council Printed on 4/14/2023Page 1 of 1
powered by Legistar™
6 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Agenda Item Wording:

Review Fiscal Year 2022/23 mid-year financial report with recommended budget appropriations.

Deadline for Action: 4/17/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Renee Nagel, Finance & Technology Director 713-4375 Amee Swearingen, Financial Analyst 713-4170
Department Recommendation:

Review Fiscal Year 2022/23 mid-year financial report with recommended budget appropriations.

Recommended appropriations by Fund:

General Fund:

1. Appropriate funds for capital projects in the amount of $225,000 in 22/23 and $75,000 in 23/24.

Internal Service Funds:

Vehicle Replacement Fund

1. Appropriate $28,000 to replace wrecked Police motorcycle.

Background Discussion:

The City adopted the 22/23 & 23/24 Budget in June 2022. The budget is based on the prior years spending and is adjusted based on estimated cost increases and any new or changed programs.

Annually the Finance Department presents a mid-year budget report to City Council that compares the budget to the current financial status for the General Fund, Measure T Fund, Measure N Fund, and the Enterprise Funds. This report also allows adjustments to be made to operations or capital projects if needed.

As shown in this report, the majority of the City’sfunds are healthy and well-managed. General Fund revenues are up in the major revenue categories, and departments are controlling their expenditures where practical, and working to enhance revenue collection where possible. Overall, the City continues to be in good financial shape. However, like all government agencies throughout California, the City is faced with higher contributions to fund pension obligations, technology cost increases, higher costs due to inflation, and the threat of a recession.

Economic Outlook
Visalia’seconomy continues to be strong despite the historically high inflation. Over the last two years, the average annual inflation rate has been 7% and this rate has continued into 2023.

Nationwide consumers continue to splurge on travel, restaurants and discretionary items that were limited during the pandemic despite the continued rise in the cost of living. In the past, as inflation Visalia City Council Printed on 4/14/2023Page 1 of 33
powered by Legistar™
7 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
limited during the pandemic despite the continued rise in the cost of living. In the past, as inflation rose, consumers would spend less on entertainment or discretionary purchases and just focus on the necessities. Since the pandemic, consumers have changed their spending behaviors and are spending their disposable income on things they want, even if it means using their savings or getting credit card debt.

This continued splurge spending has been good for the economy and is one of the biggest reasons that a recession has not begun. Economists predict that extra spending will have to slow down as the cost of living continues to rise and disposable income becomes less.

In addition to inflation, the economy is dealing with rising interest rates due to the Federal Reserve.

Since March 16, 2022, the Federal Reserve has increased interest rates 9 times with increases from 0% to 4.75%. It is anticipated that they will increase again when they meet in May 2023. The rising interest rates are supposed to slow down inflation and hopefully realign inflation to the ideal rate of 2%. The Federal Reserve believes that this rate promotes a healthy, sustainable economy. Raising interest rates slows inflation by slowing down spending which could result in a small recession.

The housing market continues to be strong; however, it has slowed since its peak. Houses are still selling, they are just on the market a little longer and are not causing bidding wars. Limited inventory has helped the market stay strong despite the rising interest rates and has kept prices from dropping.

This is also helping the economy by keeping consumers from having negative equity in their homes.

This can affect credit and financial positions negatively.

Even though the economy is strong today, these contributing factors bring uncertainty with the near future economy. The City should continue to hold a conservative and watchful course to be ready if and when a recession begins. The City should also be cautious with expenditures that will impact the City in the long term. This approach will help the City continue to maintain its good financial position.

General Fund
The General Fund is the largest individual fund in the City and is comprised of 8 operating departments. The total adopted budget for the General Fund is $84.8 million for FY 2022/23 and $87.1 for FY 2023/24. The adopted budget surplus for this fiscal year was $6.9 million and is now projected to be $15.5 million as shown in Table 1 FY 22/23 General Fund Projection. This surplus is due to revenues being up from budget by $5.8 million and expenditures down by $1.6 million due to vacancies.

Visalia City Council Printed on 4/14/2023Page 2 of 33
powered by Legistar™
8 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Table 1
FY 22/23 General Fund Projection

GENERAL FUND PROJECTIONS
21/22 22/23 22/23
Actuals Budget Projections Variance

REVENUES
Sales Tax 45,752,711 43,563,800 46,667,800 3,104,000
Property Tax 16,108,024 15,783,000 16,531,600 748,600
Property Tax - VLF Swap 13,617,850 13,770,000 14,744,500 974,500 Franchise Fee 3,155,645 2,879,800 3,171,400 291,600 Transit Occupancy Tax 4,589,179 3,898,500 4,589,200 690,700 Business License Tax 2,934,437 3,023,200 2,963,800 (59,400) All Other Revenues 11,245,099 9,888,503 9,974,400 85,897 Total Operating Revenues 97,402,945 92,806,803 98,642,700 5,835,897

EXPENDITURES
Non Departmental 799,347 787,000 914,300 127,300 Administration 6,645,468 7,803,700 7,395,000 (408,700) Administrative Services 1,216,383 1,712,508 1,508,900 (203,608) Community Development 3,205,991 3,117,900 3,461,200 343,300 Community Services - Parks 7,203,375 7,411,677 7,337,000 (74,677) Community Services - Recreation 2,073,713 3,330,600 2,533,300 (797,300) Finance 3,003,457 3,428,500 3,147,200 (281,300) Fire 15,075,183 14,722,300 15,825,300 1,103,000
Police 31,234,151 34,370,451 33,184,000 (1,186,451)
Public Works 4,071,586 4,851,600 4,684,600 (167,000) Total Operating Expenditures 74,528,654 81,536,236 79,990,800 (1,545,436) Less: Allocations Net Reimbursements4,147,091 3,900,200 4,281,700 381,500 Operating Expenditures Less Reimbursements70,381,563 77,636,036 75,709,100 (1,926,936) Capital Expenditures 1,609,104 1,443,900 1,443,900 Transfers Out to Other Funds* 9,707,395 5,754,800 5,976,300 221,500 Total Expenditures 81,698,062 84,834,736 83,129,300 (1,705,436) Surplus/(Deficit) 15,704,883 7,972,068 15,513,400 7,541,333 General Fund Revenues are projected to be higher than budgeted by $5.8 million. The majority of the increase is due to property tax and sales tax coming in higher than budget. The budget was Visalia City Council Printed on 4/14/2023Page 3 of 33
powered by Legistar™
9 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
the increase is due to property tax and sales tax coming in higher than budget. The budget was projected to be more on the conservative side after seeing larger than normal growth during the last three fiscal years.

Sales Tax is projected to increase from budget by $3.1 million (6.7%). Compared to last year’s revenues, sales tax is projected to increase by $0.9 million (2 %). This increase is due to the rise in the cost of tangible items which is mostly a result of inflation and continued higher than normal spending patterns. In addition, the City is structured with a variety of businesses that includes business to business transactions located in the industrial park.

Chart 1, Actual and Projected Sales Tax, shows the projected sales tax revenue has been above the 40 year average growth for the last two fiscal years due to the higher than normal growth. The growth total over the last three fiscal years is 29%.

Chart 1
Actual and Projected Sales Tax
Property Tax is projected to increase from budget by $0.7 million (4.5%). Compared to last year’s revenues, property tax is projected to increase by $0.4 million (2.6%). This is due to an increase of assessed property values from the County and a rise in real estate transactions with increasing prices. Visalia’sproperty values continue to increase, which creates higher property taxes when the property is sold. This projection is provided to the City by the County which is based on the property assessments calculated for the year in September.

Visalia City Council Printed on 4/14/2023Page 4 of 33
powered by Legistar™
10 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Property Tax - VLF Swap revenues are projected to increase from budget by $1.0 million (6.6%) and from last fiscal year by $1.1 million (7.6%). The Property Tax VLF swap was put in place in 2004 to fund the Vehicle License fees (VLF) that was taken from Cities when the VLF rate was reduced in 1998 from 2% to 0.65%. This revenue has increased significantly over the last two years due to the rise in vehicle prices. Staff is projecting higher than normal growth this year due to the high demand and continued vehicle shortages.

Franchise Fee is projected to be slightly more than budget by $0.3 million (9.2%). Compared to last year’sfees received, the revenues are projected to increase by another $15,800 (0.5%). In previous years the franchise fees had decreased due to technology advances. However, this fee over the last two years has increased due to utility fee increases. Based on these increases, staff is projecting this fee to continue to grow.

Transient Occupancy Tax (TOT) is projected to have an increase from budget of $690,400 (15.1%).

Compared to last year, TOT is projected to stay about the same. The revenue increase last year was 38% which was the largest increase TOT had in history. Staff believes this increase was not due to the reopening because this was seen in FY 20/21 which had a 22% increase. Due to the large increase last fiscal year, staff is projecting no increase this year. July through February revenue is slightly down from last year. Data currently shows that Hotel stays are down but Airbnb is up.

Business License is projected to slightly decrease from budget by $59,400 (-2%). Compared to last year, Business License is projected to increase by $29,400 (1%). These fees are based on business gross receipts from the prior year.

All Other Revenues are projected to increase from budget by $85,900 (0.9%). Compared to last year’sactuals, all other revenues have decreased by 1.3 million (-12.7%). The largest decrease is Engineering Development Services which is for inspection fees and filing fees. Last fiscal year had larger than normal development activity (UPS, Amazon, etc) and the projection for this year also includes a slight development slowdown from past years. The second largest decrease from last year is Recreation. Recreation in the past provide after school care/activities at various school sites.

VUSD is now receiving funding from the State to provide this service with HEART at all school sites.

Other revenues that are down are fire inspections, strike team reimbursements, water citations, and police traffic fines.

General Fund Expenditures
Operating Expenditures - are projected to be lower than budget by $1.5 million due to vacancies. At the beginning of the fiscal year, the City still had a lot of vacancies due to adding several new positions in this budget and vacancies that had carried over from the prior year. Most of the positions have been filled or are in the recruitment process. This savings is also less due to employees receiving the approved MOU 4% wage increase for FY 23/24 in this fiscal year.

Overall, the operating expenditures are up from last fiscal year by $5.5 million. The increase from last fiscal year consists of $3.6 million in salary and benefits and $1.8 million in operating expenditures.

The largest operating expenditure increases over last fiscal year are utilities (electricity & gas), technology service agreements, and maintenance contracts due to inflation costs.

Visalia City Council Printed on 4/14/2023Page 5 of 33
powered by Legistar™
11 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Allocations Net Reimbursements - Annually the City prepares a cost allocation plan that is based on prior two-year actuals. This plan is prepared according to Federal OMB A-87 guidelines. The allocation plan charges out the central service division costs (Finance, Human Resource, Risk, IT, etc) to other divisions to get the true cost of performing the services required. Allocations allow for General Fund expenditures to be reimbursed from other funds (Enterprise & Special Revenue Funds) and grants. The amounts budgeted are not based on the calculated plan due to timing. The Allocations Net Reimbursements projection is still an estimate because the actual plan for FY 22/23 has not been approved by our cognizant agency. The plan uses expenditures from two years prior.

Transfers Out to Other Funds is projected to be higher than budget by $0.2 million and down from last year actuals by $3.7 million. This category is for transferring General Fund money to other funds for Council authorized items such as debt payments, fund subsidies, and fund set-asides for future obligations. Last fiscal year had a higher-than-normal set-aside for potential litigation. This category does not include fund advances.

Capital - Capital expenditures were budgeted with the two-year budget that was presented in June 2022.

General Fund Additional Appropriations
Capital Project Requests:

Staff is recommending funding 4 capital projects for fiscal year 22/23 totaling $225,000 and 1 project for fiscal year 23/24 totaling $75,000. These projects are listed below:
1) City Rebranding for $50,000: This project is for the rebranding and marketing of the City to put forth all the positive aspects of working for the City and living in Visalia, as was discussed during the Council’sannual planning workshop. This includes updating the city’sidentity, image, and “brand”.Elements include improving digital access to be more interactive, user friendly and provide better information and communication; developing a tagline for instant recognition; producing professional videos for recruitment/informational purposes; increasing/improving social media presence to attract applicants. This project currently has $150,000 and has a contract with We The Creative. Staff is requesting an additional appropriation for $50,000 in 22/23 for City rebranding implementation.
2) IPads for Planning Commission for $10,000: The purchase and use of iPads for the Planning Commissioners will help in reducing cost in the Planning Divisions operating and personnel budgets due to the amount of time allocated to printing the public hearing staff report packets, and delivery the packets to each of the Commissioners. The division is still proceeding with transitioning the preparation of the Planning Commission agenda and staff reports into the Granicus system; however, in the interim, Commission and staff will use the City’swebsite to review both the agenda and staff reports, rather than printing reports. Staff is requesting an appropriation for $10,000 in 22/23 for the purchase of IPads and service. 3) Tables and Chairs for Senior Center for $45,000: The current furniture is over 8 years old, this facility has the most set-up and breakdown in recreation due to the variety of programs and the needs of the user group at this facility. Furniture in the facility has a lot of wear and tear from constantly being taken down and put up for various types of programming. Current tables are Visalia City Council Printed on 4/14/2023Page 6 of 33
powered by Legistar™
12 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
constantly being taken down and put up for various types of programming. Current tables are damaged and often have to be removed from use when edges break. Additionally, chairs are breaking, and cushions are beginning to rip and tear. For better sanitization, chairs with solid/firm surfaces would be best. Staff is requesting an appropriation for $45,000 in 22/23 for the purchase of 37 tables, 150 chairs and 5 carts for the tables for the senior center. 4) Ballistic Vest Replacement for $55,000: All sworn positions are provided a ballistic vest that is required to be replaced every 5 years. There are several vests that are required to be replaced in 2023 through 2024 as well as vests for new hires. Staff is requesting an appropriation for $55,000 in 22/23.
5) Riverway Sports Park Well Replacement $65,000: Riverway Sports Park currently has two irrigation wells that are used to irrigate the 80-acre park. On June 13, 2022, a pump efficiency test was performed on both Riverway Sports Park wells. During the efficiency test it was discovered that the original Phase 1 well was under performing and the well would need to be pulled to further determine the cause of the low gallon per minute (GPM) output. The well continued the loss of GPM in the next few months and the decision was made to operate on only the Phase 5 well to determine the issue with the Phase 1 well. On August 30, 2022, the Phase 1 well was pulled, and it was discovered the lower half of the pump was missing. A video camera was sent down the well shaft, during the video process many of the perforation in the casing were clogged with rust and the missing half of the pump had fallen to the bottom of the well. The project will brush the well casing to open the perforations, air lift all debris from the well, and install a new pump and shaft bearings. Staff is requesting an appropriation for $65,000 in 22/23.

In addition there is another project request for FY 23/24 (Effective July 1, 2023). 6) COS Training Resource Center for $75,000: A consistent need amongst industrial employers in the city is a skilled workforce, particularly with the growth occurring in the industrial park today. While there are numerous investments being made into many quality academic and workforce development programs in the area, this funding will kickstart a pilot concept that aims to make customizable training services easier to access for Visalia Industrial Park (VIP) employers. The COS Training Resource Center (TRC) manages the largest Employment Training Panel Multiple Employer Contract award in the greater region and provides responsive, short-term, customized workplace education and training solutions. This funding will execute a service contract with the TRC to provide training solutions in the VIP physically to make the trainings less costly for TRC to administer which in turn reduces costs to participating employers and leads to increased access, upskilling of workers, and increased wages. The pilot program will be for one year with the aim of demonstrating proof in concept that will garner ongoing support from other potential funding sources such as the Good Jobs Challenge grant. Staff is requesting an appropriation of $75,000 in FY 23/24.

General Fund Emergency Reserves
Council’spolicy is to have an emergency reserve equal to 25% of operating expenditures. This has been a priority since the recession and the policy has been met for the last four years. Going forward, the reserve will have to be increased to continue to maintain the 25%. The reserve balance at June 30, 2022 was $17.4 million.

Visalia City Council Printed on 4/14/2023Page 7 of 33
powered by Legistar™
13 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

The projected surplus for FY 2023 is $15.3 million (estimated surplus minus recommended capital appropriations of $225,000 listed above). Based on our projection, $1.5 million of the surplus will be transferred at year end to bring the reserve balance to $18.9 million keeping the reserves at 25% of operating expenditures as shown in Table 2 General Fund Emergency Reserve Balance. The remaining surplus will be deposited into the Civic Center/Public Safety Facility Reserve Fund per Council’spolicy, bringing the reserve to $60.7 million. The current surplus/reserve policy was adopted in March 2018. The policy states that any revenues in excess of actual expenditures would continue to be deposited in the emergency reserve to maintain the reserve at 25% of operating expenditures and then all remaining surplus is to be deposited into the Civic Center Reserve Fund.

Table 2
General Fund Emergency Reserve Balance
(All Amounts in Millions)
Balance as of 6/30/22 $17.4
Additional amount required to remain at 25% 1.5
Projected Balance for 6/30/23 $18.9
Preliminary Forecast for FY 23/24
The projection for FY 23/24 builds upon this year’sbudget forecast and expected growth in revenues and expenditures. The adopted budget and projection assumes the following:

The growth projection for the General Fund’stwo primary revenue sources (79% of total revenues) for the next two years is the following:

Budget Projection
· Sales Tax 2.0% 1.0%
· Property Tax 2.0% 3.0%
The Sales Tax projection is conservative considering the previous three fiscal years (19/20 - 21/22) had a total increase of 29% which was a higher-than-normal growth. This higher-than-normal growth has also inflated the Sales Tax base used to prepare projections for this fiscal year and next year (23/24).

In addition, Sales Tax revenue is the most volatile because it is based on consumer spending. This projection is also being conservative due to the continued rise in inflation. The continued splurge spending that is occurring has been good for the economy and is one of the biggest reasons that a recession has not begun. As mentioned earlier in the report, economists predict this extra spending will have to slow down as the cost of living continues to rise and disposable income becomes less.

The expenditure forecast for FY 23/24 assumes the following:
· Wages - Projection assumes no additional increase from this fiscal year due to the 4% Visalia City Council Printed on 4/14/2023Page 8 of 33
powered by Legistar™
14 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
· Wages - Projection assumes no additional increase from this fiscal year due to the 4% in the MOU for FY 23/24 being advanced into this year. On July 1, 2022 wages increased by 8% (4% FY 22/23 & 4% FY 23/24).
· Salaries and Benefits - Assumes zero vacancies for full time employees and hourlies. · PERS - The Employer Contribution rate plus the Unfunded Liability Payment assumes a projected increase of 9% for 23/24.
· Health Insurance - 4% annual increase. The total health insurance increase is projected to be 8% each year. Per the City’s MOU’s the employees pay half of the increase. · Capital - Assumes $1.3 million for capital projects which was approved in the budget.

Typically, the capital budget increases throughout the year as projects arise and are approved by Council.

The adopted budget for FY 23/24 included a surplus of $6.2 million. Since Sales Tax and Property Tax are increasing, the projection for FY 23/24 is higher from budget for both revenues. Based on these assumptions, the projected surplus for FY 23/24 is $11 million. The surplus for FY 23/24 assumes zero vacancies for full time employees and hourlies. In the past the City has seen savings from vacancies and is safe to assume there will be a savings of $1.0 to $1.5 million. This savings has not been included in the projection.

Preliminary Forecast for FY 24/25 - 26/27
The Finance Department has prepared two projections: 1) that builds upon this year’s budget forecast and expected growth in revenues and expenditures; and 2) that assumes a slight recession that starts in FY 23/24.

Forecast Projection 1 (Growth):

The growth projection for the General Fund revenues for the three remaining years (24/25 - 26/27) are the following:
· Sales Tax (2%)
· Property Tax (3%)
· All Other Revenues (1-2%)
Sales Tax and Property Tax represents 79% of the General Fund total revenues.

The expenditure forecast assumes the following:
· Wages - 4% annual increase. The projected increase is for additional allocated positions and wage adjustments due to merits and reclassifications. Future wage increases will be negotiated with bargaining groups and approved by Council. Given recent developments, any discussion of wage adjustments must be given significant new attention as the fiscal future has become less predictable.

Visalia City Council Printed on 4/14/2023Page 9 of 33
powered by Legistar™
15 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
· Projection assumes zero vacancies for full time employees and hourlies. In the past the City has realized savings from vacancies and it is believed that we are safe to assume there will be a savings of $1 to $1.5 million. This savings has not been included in the projection. Staff is working diligently to reduce number of vacancy and recruitment time.
· PERS increase - Employer Contribution rate (4%) plus the Unfunded Liability Payment (schedule provided by PERS) that changes annually.
· Health Insurance - 4% annual increase. The total health insurance increase is projected to be 8% each year. Per the City’s MOU’s the employees pay half of the increase.

This number could be higher due to several large health claims. · Capital - $1.5 million annually. This can be reduced as in the past by deferring maintenance. This is not recommended due to the specific maintenance needs of the City’s facilities and assets.

Table 3
General Fund Forecast - Continued Growth
Actuals
Revenues 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 (All Amounts in Millions)
Sales Tax 45.8 46.7 47.1 48.0 49.0 50.0 Property Tax 29.7 31.2 31.9 32.9 33.8 34.9 Transient Occupancy Tax 3.2 3.2 3.2 3.3 3.3 3.4 Franchise Tax 4.6 4.6 4.6 4.6 4.7 4.7 Business License Fees 2.9 3.0 3.0 3.0 3.1 3.1 All Other Revenues 11.2 9.9 8.6 8.8 8.9 9.1 Total 97.4 98.6 98.4 100.6 102.9 105.2

Expenditures
Full-time Employee Wages 31.5 32.1 33.1 34.7 36.4 38.1 Group Health Insurance 5.8 5.8 6.0 6.3 6.5 6.8 Misc & Public Safety PERS 4.1 4.2 4.4 4.7 5.1 5.5 PERS Unfunded Liability 7.2 8.2 9.0 9.9 10.3 10.7 Other Expenditures 37.4 41.2 43.4 45.2 47.0 48.9 Total 86.0 91.5 95.9 100.8 105.3 110.0 Less:Reimbursments (15.7) (15.8) (15.8) (16.3) (16.8) (17.3) Total Operating 70.3 75.7 80.1 84.5 88.5 92.8 Transfer Out/Debt 9.7 6.0 6.0 6.2 6.5 6.7 Capital Program 1.6 1.4 1.3 1.5 1.5 1.5 Prior Period Adjustments
Projected Surplus/(Deficit) 15.8 15.5 11.0 8.4 6.3 4.2 Projected
The forecast shows the City having a surplus in all five years. However, the surplus decreases each Visalia City Council Printed on 4/14/2023Page 10 of 33
powered by Legistar™
16 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

The forecast shows the City having a surplus in all five years. However, the surplus decreases each year due to expenditures increasing more than revenues. Most of this increase is due to employee costs rising along with operational costs such as utilities, technology service agreements, and costs of goods (chemicals, fuel, parts, etc). This is an optimistic forecast and does not include any recession or slowdown in revenue growth.

Forecast Projection 2 (slight recession):

In this forecast, operating expenditures are the same as the scenario 1 above. The difference in these two forecasts is in the revenue assumption. The revenues in this projection assumes:
· Sales Tax (FY 23/24 (-3%), FY 24/25 (-2%), remaining years (1% growth)) · Property Tax (FY 23/24 (0%), FY 24/25 (0%), remaining years (1% growth)) · Franchise Tax (all years 1%)
· All Other Revenues (FY 23/24 (-3%), FY 24/25 (-2%), remaining years (1% growth)) Table 4
General Fund Forecast - Recession
Actuals Projected
Revenues 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 (All Amounts in Millions)
Sales Tax 45.8 46.7 45.3 44.4 44.8 45.3 Property Tax 29.7 31.2 31.2 31.2 31.5 31.8 Transient Occupancy Tax 3.2 3.2 3.1 3.0 3.1 3.1 Franchise Tax 4.6 4.6 4.6 4.7 4.7 4.8 Business License Fees 2.9 3.0 2.9 2.9 2.9 2.9 All Other Revenues 11.2 9.9 9.6 9.4 9.5 9.6 Total 97.4 98.6 96.8 95.6 96.5 97.5 Expenditures
Full-time Employee Wages 31.5 32.1 33.1 34.7 36.4 38.1 Group Health Insurance 5.8 5.8 6.0 6.3 6.5 6.8 Misc & Public Safety PERS 4.1 4.2 4.4 4.7 5.1 5.5 PERS Unfunded Liability 7.2 8.2 9.0 9.9 10.3 10.7 Other Expenditures 37.4 41.2 43.4 45.2 47.0 48.9 Total 86.0 91.5 95.9 100.8 105.3 110.0 Less:Reimbursments (15.7) (15.8) (15.8) (16.3) (16.8) (17.3) Total Operating 70.3 75.7 80.1 84.5 88.5 92.8 Transfer Out/Debt 9.7 6.0 6.0 6.2 6.5 6.7 Capital Program 1.6 1.4 1.3 1.5 1.5 1.5 Prior Period Adjustments
Projected Surplus/(Deficit) 15.8 15.5 9.4 3.3 0.0 (3.5) This forecast is considered slight recession because revenues do not decline dramatically and revenues only decrease for two years. During the Great Recession, Sales Tax decreased for three years (2008 - 2010) for a total reduction of 26%.

With a slight recession starting next year, the forecast has a surplus for the next two years with it Visalia City Council Printed on 4/14/2023Page 11 of 33
powered by Legistar™
17 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

With a slight recession starting next year, the forecast has a surplus for the next two years with it turning into a deficit by the last year. This is only a projection and it is staff’s intent to bring a balanced budget to Council each year. In order to balance the budget, staff will look at ways to reduce operating costs, evaluate all vacant positions, defer capital, and review current fees to ensure fees are aligned appropriately.

SPECIAL REVENUE AND INTERNAL SERVICE FUNDS
The mid-year report focuses on operating funds. As a result, the only special revenue funds that have operating costs are Measure T and Measure N, which are included. Staff is also including the Vehicle Replacement Fund to appropriate funds for an additional capital project. All fund projections shown below do not assume a recession.

Vehicle/Equipment Replacement Fund
The Vehicle/Equipment Replacement Fund is used to replace all General Fund vehicles and large equipment. The initial purchase of a General Fund vehicle is funded by the General Fund and put into the Vehicle/Equipment Replacement Fund as an asset. The amount that the assets depreciate annually is charged to the General Fund to be set-aside for future replacements in this fund. When a vehicle is fully depreciated and meets the City replacement policy, the vehicle is replaced from the money that has been set-aside. Interest earned in this fund helps offset price increases. The balance of this fund is shown in Table 5, Vehicle Replacement Fund Projection.

Table 5
Vehicle Replacement Fund Projection
Vehicle Replacement Fund (502) 2022/23
Beginning Cash Balance $5,914,636
Operating Expenditures ($56,700)
Capital Expenditures ($4,724,124)
Total Resources Available $1,133,811
Staff is recommending to appropriate funds for the following project:

Replace Wrecked Motorcycle - $28,000. In November 2022, Visalia Police Department was dispatched to a robbery that occurred at Chase Bank. The officer observed the suspect and attempted a traffic stop. The suspect intentionally slowed down and swerved towards the officer causing the officer to go down on his motorcycle. The motorcycle was damaged and declared a total loss. Staff is requesting to appropriation $28,000 to replace the 2015 motorcycle that was fully depreciated.

Visalia City Council Printed on 4/14/2023Page 12 of 33
powered by Legistar™
18 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Measure T
In 2004, City of Visalia voters approved a measure to increase sales tax by ¼ cent. This is known as Measure T and the sales tax revenues are earmarked for public safety. The measure uses a detailed, 20-year plan which includes hiring of personnel, construction of capital projects and equipment purchases. Plan elements implemented to date are as follows:
· Two Police substations built
· 23 Police Officers hired and vehicles purchased (reduced from 28 due to revenue shortfalls and as directed by the City Council at their June 20, 2011 meeting) · 13 Firefighters hired
· Added 1 Administrative Fire Captain and 1 Battalion Chief · Built Fire Station 55 and Training Facility
· Built Fire Station 53
· Purchased 2 New Fire Trucks
· Built Visalia Emergency Communication Center
The Measure T plan elements are on track due to being on an amended expenditure plan. Chart 2 - Measure T Revenues & Expenditures, compares the revenues originally projected in the plan versus the revenues collected and projected through FY 2023/24. The amended plan expenditures shown on the chart are the actual and projected expenditures.

Measure T sales tax continues to grow but at a slower rate than the General Fund sales tax rate.

Measure T does not receive any of the general 1% sales tax. It only receives the additional ¼ cent tax. This slower growth rate is due to how district sales taxes are applied compared to general sales taxes in two main areas: car sales and business to business sales. District sales tax is applied to the City the car is registered in, not the City it is sold in. Therefore, for Visalia to receive the district sales tax for a purchase of a vehicle, that vehicle would have to be registered in Visalia. If a resident from Dinuba purchases a vehicle in Visalia, Visalia would receive their local 1% share of the State sales tax but would not receive any of the district taxes (Measure T & N). Likewise, Business to Business sales tax works the same way. One of the areas that Visalia has seen a large sales tax growth is in Business to Business sales. These transactions do not help Measure T as they do our General Sales Tax.

Chart 2
Measure T Revenues & Expenditures
Visalia City Council Printed on 4/14/2023Page 13 of 33
powered by Legistar™
19 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

In FY 08/09 the revenues fell below the plan estimates. To keep the Measure T funds from going negative, the City took several remedial actions over the years, namely:
· Reduced Police Officers allocation by 6 (3 through attrition & 3 transferred to the General Fund). In July 2014, an officer was added back. The current number of officers is 23 reduced from 28.
· Reduced Fire position allocation from 18 to 15. In June 2019, moved the Battalion Chief and Administrative Captain to Measure N bringing the total Fire position allocation to 13 which is 1 less than the original plan of 14. The additional positions were added in the first several years of the plan bring the total to 18.
· Declared a fiscal emergency for fiscal years 09/10, 10/11, 11/12, and 12/13 · Maximum of 1 vacancy is allowed in each fund
These changes helped reduce operating expenses which allowed the funds to no longer be in a deficit. According to the ballot measure, Measure T sales tax is to be shared 60% for police and 40% for fire. Thus, the City maintains two funds: Measure T - Fire and a Measure T - Police.

Measure T - Fire
Due to the larger than normal increase in sales tax revenue and the amendments, Fire Measure T revenues exceed the projected expenditures by $0.9 million, as shown in Table 6 Fire Measure T Projection. The fund balance is projected to be $7.2 million at the end of the fiscal year. The surplus is projected to decrease each year due to the increase in benefits costs. In addition, the Measure T Fire plan is to contribute towards the Public Safety Building that is currently under design.

Table 6
Visalia City Council Printed on 4/14/2023Page 14 of 33
powered by Legistar™
20 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Fire Measure T Projections
Ameneded Plan
19/20 - 13 firefighters - no admin captain or BC
FY21/22
Actuals
FY22/23
Projected
FY23/24
Projected FY24/25 FY25/26 FY26/27 FY 27/28
Revenues
Sales Tax Revenues 3,953,626 3,993,200 4,033,100 4,073,400 4,114,100 4,155,200 4,196,800 Interest & Strike Team 812 106,200 84,400 85,200 86,100 87,000 87,900 Total Revenues 3,954,438 4,099,400 4,117,500 4,158,600 4,200,200 4,242,200 4,284,700 Expenditures
Salaries and Benefits 2,460,089 2,639,800 2,693,700 2,801,400 2,913,500 3,030,000 3,151,200 Operating Expenditures 469,095 528,100 523,400 539,100 555,300 572,000 589,200 Capital - - - - - - - Total Expenditures 2,929,184 3,167,900 3,217,100 3,340,500 3,468,800 3,602,000 3,740,400 Surplus/(Shortfall) 1,025,254 931,500 900,400 818,100 731,400 640,200 544,300 Beginning Fund Balance 5,193,381 6,218,635 7,150,135 8,046,010 8,853,835 9,574,835 10,204,535 Operating Surplus/(Deficit) 1,025,254 931,500 900,400 818,100 731,400 640,200 544,300 Transfer from/(to Economic Uncertainty Fund)(128,984) (36,241) (4,525) (10,275) (10,400) (10,500) (10,625) Ending Fund Balance 6,218,635 7,150,135 8,046,010 8,853,835 9,574,835 10,204,535 10,738,210 Economic Uncertainty Fund Balance 988,610 1,024,850 1,029,375 1,039,650 1,050,050 1,060,550 1,071,175 Required Economic Uncertainty Fund Balance 988,610 1,024,850 1,029,375 1,039,650 1,050,050 1,060,550 1,071,175 Assumptions: Sales Tax - 22/23 and thereafter 1%
Economic Uncertainty Fund Balance grows by interest earnings Recommendation: Staff will continue with the plan as amended. Staff will continue to monitor expenses to assure that the fund remains in balance and can contribute to the Public Safety Building. Staff will return with funding options for the Public Safety Building.

Measure T - Police
As shown in Table 7 Police Measure T Projections, the police fund is projected to have a surplus of $1.8 million in this fiscal year. The Police Measure T Fund will be contributing $151,200 (9.6% of total debt payment) towards the annual VECC debt payment which started in fiscal year 15/16. Per the Measure T plan, this fund would be paying 25% ($284,500 annually) of the debt payment. Since revenues could not cover the full debt payment, staff reduced the Measure T portion of the annual debt payment to $151,000. In addition, the General Fund is carrying three Measure T officers. Each officer costs about $150,000. Staff is projecting a smaller surplus in the future years, starting in FY 23/24, due to PERS increases. In addition, the Measure T Police plan is to contribute towards the Public Safety Building that is currently under design.

Table 7 - Police Measure T Projections
Amended Plan (28 to 23, 3 are in GF)
Total 23 officers
FY 21/22
Actuals
FY22/23
Projection
FY23/24
Projection FY24/25 FY25/26 FY26/27 FY27/28
Revenues
Sales Tax Revenues 5,930,439 5,989,700 6,049,600 6,110,100 6,171,200 6,232,900 6,295,200 Interest & Grant Reimb (212) 133,700 133,700 135,000 136,400 137,800 139,200 Total Revenues 5,930,227 6,123,400 6,183,300 6,245,100 6,307,600 6,370,700 6,434,400 Expenditures
Salaries and Benefits 3,273,692 3,466,800 3,948,700 4,106,600 4,270,900 4,441,700 4,619,400 Operating Expenditures 732,374 744,600 752,300 774,900 798,100 822,000 846,700 Debt Payment (VECC) 151,090 150,940 151,010 151,190 151,060 151,060 151,060 Capital - - - - - - - Total Expenditures 4,157,156 4,362,340 4,852,010 5,032,690 5,220,060 5,414,760 5,617,160 Surplus/(Shortfall) 1,773,071 1,761,060 1,331,290 1,212,410 1,087,540 955,940 817,240 Beginning Fund Balance 4,029,624 5,624,745 6,877,531 8,193,841 9,390,801 10,462,721 11,402,881 Operating Surplus/(Deficit) 1,773,071 1,761,060 1,331,290 1,212,410 1,087,540 955,940 817,240 Transfer from/(to Economic Uncertainty Fund) (177,950) (508,274) (14,980) (15,450) (15,620) (15,780) (15,920) Ending Fund Balance 5,624,745 6,877,531 8,193,841 9,390,801 10,462,721 11,402,881 12,204,201 Economic Uncertainty Fund Balance 1,022,576 1,530,850 1,545,830 1,561,280 1,576,900 1,592,680 1,608,600 Required Economic Uncertainty Fund Balance 1,482,560 1,530,850 1,545,830 1,561,280 1,576,900 1,592,680 1,608,600 Assumptions: Sales Tax - 22/23 and thereafter 1%
Visalia City Council Printed on 4/14/2023Page 15 of 33
powered by Legistar™
21 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Amended Plan (28 to 23, 3 are in GF)
Total 23 officers
FY 21/22
Actuals
FY22/23
Projection
FY23/24
Projection FY24/25 FY25/26 FY26/27 FY27/28
Revenues
Sales Tax Revenues 5,930,439 5,989,700 6,049,600 6,110,100 6,171,200 6,232,900 6,295,200 Interest & Grant Reimb (212) 133,700 133,700 135,000 136,400 137,800 139,200 Total Revenues 5,930,227 6,123,400 6,183,300 6,245,100 6,307,600 6,370,700 6,434,400 Expenditures
Salaries and Benefits 3,273,692 3,466,800 3,948,700 4,106,600 4,270,900 4,441,700 4,619,400 Operating Expenditures 732,374 744,600 752,300 774,900 798,100 822,000 846,700 Debt Payment (VECC) 151,090 150,940 151,010 151,190 151,060 151,060 151,060 Capital - - - - - - - Total Expenditures 4,157,156 4,362,340 4,852,010 5,032,690 5,220,060 5,414,760 5,617,160 Surplus/(Shortfall) 1,773,071 1,761,060 1,331,290 1,212,410 1,087,540 955,940 817,240 Beginning Fund Balance 4,029,624 5,624,745 6,877,531 8,193,841 9,390,801 10,462,721 11,402,881 Operating Surplus/(Deficit) 1,773,071 1,761,060 1,331,290 1,212,410 1,087,540 955,940 817,240 Transfer from/(to Economic Uncertainty Fund) (177,950) (508,274) (14,980) (15,450) (15,620) (15,780) (15,920) Ending Fund Balance 5,624,745 6,877,531 8,193,841 9,390,801 10,462,721 11,402,881 12,204,201 Economic Uncertainty Fund Balance 1,022,576 1,530,850 1,545,830 1,561,280 1,576,900 1,592,680 1,608,600 Required Economic Uncertainty Fund Balance 1,482,560 1,530,850 1,545,830 1,561,280 1,576,900 1,592,680 1,608,600 Assumptions: Sales Tax - 22/23 and thereafter 1%
Recommendation: Staff will continue with the plan as amended. Staff will continue to monitor expenses to assure that the fund remains in balance and can contribute to the Public Safety Building. Staff will return with funding options for the Public Safety Building.

Measure N
In November of 2016, the voters of Visalia passed a ½ cent Sales Tax Override, Measure N - The Visalia Essential City Services Measure. Sales Tax from Measure N will provide for essential city services such as police, fire, and recreation, as well as maintenance of parks and roads. The measure uses a detailed, 10 year plan which includes hiring of personnel, construction of capital projects and equipment purchases.

As part of the measure, Council adopted an Accountability Ordinance (Ordinance 16-21) to establish accountability measures as outlined below:

Revenues:

Visalia City Council Printed on 4/14/2023Page 16 of 33
powered by Legistar™
22 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
· 10% of budgeted revenues must be deposited in an Uncertainty Fund. Money can only be accessed during a fiscal emergency;
· 10% of budgeted revenues must be deposited into the following categories:
o 2% Youth Programs
o 8% Maintenance and Emerging Needs Expenditures:
· Money shall not be used for debt service payments;
Revenues for FY 22/23 are projected to be higher than budget by $0.7 million as shown in Table 8, Measure N Projection. Operating expenditures are projected to be slightly below budget by $0.3 million due to not being fully staffed.

Table 8 - Measure N Projection
(Expenditures based on amended plan)
2022-23 2022-23 2023-24 2024-25 2025-26 2026-27
Budget Projected Projected Projected Projected Projected Revenues
Sales Tax 19,283,800 19,914,200 20,113,300 20,314,400 20,517,500 20,722,700 Interest & Misc Earnings (1.5%) 228,000 249,700 205,800 207,900 210,000 212,100 Total Revenues 19,511,800 20,163,900 20,319,100 20,522,300 20,727,500 20,934,800 Expenditures
Police
Salary and Benefits 4,825,000 4,762,600 5,178,000 5,333,300 5,493,300 5,658,100 Operating Expenditures 580,312 585,400 536,800 547,500 558,500 569,700 Capital - Vehicles 93,900 93,900 61,800 70,000 72,000 146,000 Capital - Body Cameras 186,000 180,900 200,000 204,000 208,100 212,300 Fire
Salary and Benefits 1,398,800 1,183,700 1,446,700 1,490,100 1,534,800 1,580,800 Operating Expenditures 243,600 305,500 298,900 304,900 311,000 317,200 Capital
Streets Capital 3,600,000 3,600,000 4,000,000 3,800,000 4,000,000 3,900,000 Parks and Recreation
Salary and Benefits 381,400 363,400 400,100 412,100 424,500 437,200 Operating Expenditures 297,800 303,900 307,000 316,200 325,700 335,500 Capital
2% Youth - Police & Recreation 385,700 273,350 402,300 406,300 410,400 414,500 Maintenance & Emerging Needs
Building Maintenance 1,542,700 1,542,700 500,000 505,000 510,100 515,200 Emerging Needs
Downtown Street Lights 1,542,704 1,573,600 1,609,100 1,625,200 1,641,400 1,657,800 State Sales Tax Fees 279,200 266,400 266,700 272,000 277,400 282,900 Total Expenditures 15,357,116 15,035,350 15,207,400 15,286,600 15,767,200 16,027,200 Surplus/(Shortfall) 4,154,684 5,128,550 5,111,700 5,235,700 4,960,300 4,907,600 Beginning Cash 25,224,820 25,224,820 6,400,115 11,473,245 16,644,495 21,519,945 Prior Year Capital Roll Over 23,195,345 23,195,345
Transfer to Uncertainty Fund 757,910 38,570 64,450 84,850 40,900 Ending Cash Balance 29,379,504 6,400,115 11,473,245 16,644,495 21,519,945 26,386,645 Uncertanity Fund Balance 1,928,380 1,928,380 1,966,950 2,031,400 2,051,800 2,072,300 Visalia City Council Printed on 4/14/2023Page 17 of 33
powered by Legistar™
23 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
2022-23 2022-23 2023-24 2024-25 2025-26 2026-27
Budget Projected Projected Projected Projected Projected Revenues
Sales Tax 19,283,800 19,914,200 20,113,300 20,314,400 20,517,500 20,722,700 Interest & Misc Earnings (1.5%) 228,000 249,700 205,800 207,900 210,000 212,100 Total Revenues 19,511,800 20,163,900 20,319,100 20,522,300 20,727,500 20,934,800 Expenditures
Police
Salary and Benefits 4,825,000 4,762,600 5,178,000 5,333,300 5,493,300 5,658,100 Operating Expenditures 580,312 585,400 536,800 547,500 558,500 569,700 Capital - Vehicles 93,900 93,900 61,800 70,000 72,000 146,000 Capital - Body Cameras 186,000 180,900 200,000 204,000 208,100 212,300 Fire
Salary and Benefits 1,398,800 1,183,700 1,446,700 1,490,100 1,534,800 1,580,800 Operating Expenditures 243,600 305,500 298,900 304,900 311,000 317,200 Capital
Streets Capital 3,600,000 3,600,000 4,000,000 3,800,000 4,000,000 3,900,000 Parks and Recreation
Salary and Benefits 381,400 363,400 400,100 412,100 424,500 437,200 Operating Expenditures 297,800 303,900 307,000 316,200 325,700 335,500 Capital
2% Youth - Police & Recreation 385,700 273,350 402,300 406,300 410,400 414,500 Maintenance & Emerging Needs
Building Maintenance 1,542,700 1,542,700 500,000 505,000 510,100 515,200 Emerging Needs
Downtown Street Lights 1,542,704 1,573,600 1,609,100 1,625,200 1,641,400 1,657,800 State Sales Tax Fees 279,200 266,400 266,700 272,000 277,400 282,900 Total Expenditures 15,357,116 15,035,350 15,207,400 15,286,600 15,767,200 16,027,200 Surplus/(Shortfall) 4,154,684 5,128,550 5,111,700 5,235,700 4,960,300 4,907,600 Beginning Cash 25,224,820 25,224,820 6,400,115 11,473,245 16,644,495 21,519,945 Prior Year Capital Roll Over 23,195,345 23,195,345
Transfer to Uncertainty Fund 757,910 38,570 64,450 84,850 40,900 Ending Cash Balance 29,379,504 6,400,115 11,473,245 16,644,495 21,519,945 26,386,645 Uncertanity Fund Balance 1,928,380 1,928,380 1,966,950 2,031,400 2,051,800 2,072,300 The projection for FY 22/23 and going forward include a 1% growth in sales tax each year. Like Measure T, Measure N sales tax doesn’tgrow at the same rate as the General Fund. Currently, the fund has a large cash balance due to the time it takes to get programs up and running. For example, Visalia City Council Printed on 4/14/2023Page 18 of 33
powered by Legistar™
24 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
fund has a large cash balance due to the time it takes to get programs up and running. For example, the squad program took a while to get fully up and running due to recruitments and purchasing equipment.

The expenditures for future years are per the current amended plan which will need to be adjusted as costs increase with equipment, vehicles, and technology. In addition, this forecast does not include an additional appropriation of approximately $8 million for Station 51. The budget currently has the station budgeted for $4 million. This station houses two fire units plus one squad unit. Staff will also be returning with the emerging needs category to establish a policy on how these funds should be used and any surplus money.

Recommendation: Staff will continue with FY 22/23 budget as approved. Staff will return to Council and the Measure N Committee to request additional funding and with a proposed policy for surplus money and emerging needs.

ENTERPRISE FUND EVALUATIONS
Enterprise Funds have different accounting requirements than the Governmental Funds. Accounting for the General Fund focuses on paying current year’s operating expenditures, with separate accounting for capital assets and debt service.

However, the accounting for enterprises must:

1. Cover current operating costs;

2. Pay debt service;

3. Replace capital assets; and,

4. Maintain reasonable fund balance.

The evaluation of enterprise funds must determine if all of these financial measurements are occurring or if there are financial circumstances that allow the enterprise to overcome these financial necessities. If the first two items are being covered, then an evaluation of the individual fund’scash balance is needed to determine if the fund has adequate resources to replace capital assets.

In the enterprise accounting model, one element of cost is depreciation. Depreciation is a non- cash expense intended to represent the proportional usage of an entity’s capital plan. For short- term analysis, the fund will deduct depreciation from an operation’s projected income statement to determine the projected change in cash.

BUILDING SAFETY
Building Safety is currently projected to meet their objective of covering operating cost as shown on Table 11, Building Safety. The Building Safety revenues are projected to be $4.5 million and expenditures are projected to be $3.5 million. Revenues are projected to be down from FY 21/22 by Visalia City Council Printed on 4/14/2023Page 19 of 33
powered by Legistar™
25 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
expenditures are projected to be $3.5 million. Revenues are projected to be down from FY 21/22 by $1.4 million. Expenses are projected to be up from budget by $104,000 due to wage increases.

Residential and commercial building permits were at historical lows in FY 10/11 (2,841 permits issued). Over the years, building permits have increased with last year being the largest number of permits issued (6,634). It is projected that this fiscal year will have a slight decrease in the number of permits issued as shown in Table 9, Total Permits Issued & Valuations.

Table 9
Total Permits Issued & Valuations
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 Actual Actual Actual Actual Actual Actual Actual Actual Actual Projected Total Permits Issued 3,846 4,532 5,145 4,893 4,743 5,338 5,034 5,662 6,634 6,362 Total Permit Valuation
(in millions) 188.1$ 223.7$ 248.5$ 253.2$ 246.0$ 262.3$ 339.5$ 472.6$ 610.2$ 459.5$ In the first quarter of 2023 the City has seen a decrease in building permit issuance for new single- family residential development. Decreases for new single-family residential permits can likely be attributed to increases in interest rates, as well as the inability for the City to process and obtain approvals for several new single-family residential subdivisions in the City’sUrban Growth Tier II boundary due to not having an adopted ordinance to implement the City’s agricultural mitigation policy. However, with the City adopting an Agricultural Preservation Ordinance to address the agricultural mitigation policy in the summer of 2023, staff anticipates new single-family residential permit activity to increase as we begin processing these new single-family residential subdivisions in the Tier II boundary. Staff also anticipates new single-family residential permit issuance to be slightly less than years past due to mortgage interest rate increases as shown in Table 10 - New Single family Dwelling Permits Comparison.

Table 10
New Single family Dwelling Permits Comparison
Visalia City Council Printed on 4/14/2023Page 20 of 33
powered by Legistar™
26 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Overall, the construction activity drives the revenue collection in several categories and is an indicator of future activity for several other categories, such as property taxes, impact fees, and storm and sanitary sewer system fees. Based on this staff will continue to monitor the building activity.

The Building fund has been able to be more efficient and enhance customer service over the past few years with additional staff. There is an electronic drop box for contractors to submit their plans for review. Staff is still working on fine tuning the deployment on the recently upgraded permit system that will soon allow enhanced services such as electronic submittals and payment, providing e-plan reviews, and real time status of any permit. This will bring the development community a higher level of self service. In addition, staff is continuing to look at ways to reduce permit review turn-around time, maintain zero rollover inspections, and increase customer satisfaction.

Table 11
OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 4,986,900 4,481,200 (505,700) Reimbursements 29,800 22,800 (7,000) TOTAL REVENUES 5,016,700 4,504,000 (512,700)

EXPENSES
Personnel 2,323,400 2,199,800 (123,600)
Operations & Maintenance 617,203 578,900 (38,303) Depreciation 16,600 19,100 2,500
Allocated Costs 689,900 727,300 37,400 TOTAL OPERATING EXPENSES 3,647,103 3,525,100 (122,003) RESOURCES AVAILABLE FOR CAPITAL 1,369,597 978,900 (390,697)

CASH AVAILABLE FOR CAPITAL ASSETS
Beginning Cash 13,135,000 13,135,000 -
Add: Resources Available for Capital 1,369,597 978,900 (390,697) Add: Depreciation Transfer 16,600 19,100 2,500 Less: Capital Purchases (168,132) (168,000) 132 ENDING CAPITAL ASSET CASH 14,353,065 13,965,000 (388,065)

BUILDING SAFETY
22/23 BUDGET PROJECTION
Visalia City Council Printed on 4/14/2023Page 21 of 33
powered by Legistar™
27 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 4,986,900 4,481,200 (505,700) Reimbursements 29,800 22,800 (7,000) TOTAL REVENUES 5,016,700 4,504,000 (512,700)

BUILDING SAFETY
22/23 BUDGET PROJECTION
Recommended Action: Staff will continue to monitor permit activity.

CONVENTION CENTER
The Convention Center operation is treated as an enterprise even though its revenues do not cover operating costs, debt service, or capital purchases as shown in Table 12, Convention Center. While it can be argued the operation should not be accounted for in this manner, the fund is accounted for as an enterprise because it supplies a service that is based upon user fees and the City’s intent is for the operation to be as self-sufficient as possible.

Revenues for FY 22/23 are projected to be up $73,100 (4%) from budget and $219,600 (12%) from last year. Expenditures for FY 22/23 are projected to be up from budget by $67,100 (2%) and up from last year by $704,400 (18%).

Table 12
OPERATIONS Budget Projected Variance

REVENUES
Operating Revenues 1,712,200$ 1,785,300$ 73,100
Reimbursements 50,000 15,300 (34,700) TOTAL REVENUES 1,762,200 1,800,600 38,400

EXPENSES
Personnel 1,712,900 1,737,400 24,500
Operations & Maintenance 965,600 1,009,800 44,200 Depreciation 736,500 757,300 20,800
Allocated Costs 271,300 287,300 16,000
TOTAL OPERATING EXPENSES 3,686,300 3,791,800 105,500 OPERATING SHORTFALL (1,924,100)$ (1,991,200)$ 67,100$

AMOUNT TO BE SUBSIDIZED
Operating Shortfall (1,924,100) (1,991,200) 67,100 Add: Depreciation Transfer from Operation 736,500 757,300 20,800 Debt Payment (1,090,500) (1,090,500) -
Capital Purchases (58,200) (58,200) -
Capital Set-aside (241,800) (241,800)
ENDING CASH = GENERAL FUND TRANSFER (2,578,100)$ (2,624,400)$ 87,900$

CONVENTION CENTER
22/23 BUDGET PROJECTION
Visalia City Council Printed on 4/14/2023Page 22 of 33
powered by Legistar™
28 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

OPERATIONS Budget Projected Variance

REVENUES
Operating Revenues 1,712,200$ 1,785,300$ 73,100
Reimbursements 50,000 15,300 (34,700) TOTAL REVENUES 1,762,200 1,800,600 38,400

CONVENTION CENTER
22/23 BUDGET PROJECTION
Occupancy revenues can be affected by multiple factors such as type of event, length of event, room rental charged, hotel rooms occupied, and discount to rooms booked in the Charter Oak Ballroom given to the Marriott (given policy). As shown in Table 13 Convention Center Operating Revenues and Expenditures, staff is reducing expenditures as fewer revenues are received.

Table 13
Convention Center Operating Revenues and Expenditures
FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 Actuals Actuals Actuals Actuals Projected Projected
Revenues 3,090,980 1,916,787 312,979 1,565,672 1,800,600 1,833,900 Expenditures (4,833,499) (3,757,667) (2,106,125) (2,895,842) (3,791,800) (3,806,300) Surplus/(Shortfall) (1,742,519) (1,840,880) (1,793,146) (1,330,170) (1,991,200) (1,972,400) Recommended Action: Staff will continue to work on measures that increase revenues and decrease expenditures.

AIRPORT

Visalia City Council Printed on 4/14/2023Page 23 of 33
powered by Legistar™
29 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

The majority of the Airport’s operating revenues are from aviation fuel sales. Fuel sales for this fiscal year are projected to be up from the previous year as shown in Table 14 Airport Fuel Sales.

Table 14
Airport Fuel Sales in Gallons
FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 Est AV 100LL 91,813 78,882 68,128 72,682 77,697 76,061 96,036 105,706 Jet 213,077 169,897 201,758 209,269 147,883 160,888 203,407 207,287 TOTAL 304,890 248,779 269,886 281,951 225,580 236,949 299,443 312,993 Note: AV 100 is used mainly by smaller, general aviation planes. Jet sales tend to be for corporate clients.

The Airport has been able to add 14 new hangers with grant funding they received in lieu of not subsidizing air service. All hangers are currently in a lease agreement. There are 4 large corporate hangers and 10 smaller T hangers. This has created more revenue for the Airport fund with hanger rent and more fuel sales. Airport revenues are projected to be up from last fiscal year by 6% ($170,600) and operating expenses up by 11% ($300,100). The operating surplus for this fiscal year is projected to be $181,700 as shown in Table 15 Airport. This surplus will be used to fund capital or as a grant match in the future.

Table 15
OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 2,140,600 2,822,900 682,300
TOTAL REVENUES 2,140,600 2,822,900 682,300

EXPENSES
Personnel 604,900 628,600 23,700
Operations & Maintenance 745,800 1,407,000 661,200 Depreciation 323,000 337,900 14,900
Allocated Costs 264,300 267,700 3,400 TOTAL OPERATING EXPENSES 1,938,000 2,641,200 703,200 RESOURCES AVAILABLE FOR CAPITAL 202,600 181,700 (20,900)

CASH AVAILABLE FOR CAPITAL ASSETS
Beginning Cash 796,500 796,500 -
Add: Resources Available for Capital 202,600 181,700 (20,900) Add: Depreciation Transfer 323,000 337,900 14,900 Add: CIP Grants 113,400 172,400 59,000 Less: Capital Purchases Authorized (511,000) (511,000) - ENDING CAPITAL ASSET CASH 924,500 977,500 53,000

AIRPORT
22/23 BUDGET PROJECTION
Visalia City Council Printed on 4/14/2023Page 24 of 33
powered by Legistar™
30 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 2,140,600 2,822,900 682,300
TOTAL REVENUES 2,140,600 2,822,900 682,300

AIRPORT
22/23 BUDGET PROJECTION
Recommended Action: Staff will continue to monitor Airports expenses and revenues to ensure revenues cover expenditures.

TRANSIT
The City’sTransit operation remains financially sound as a result of significant federal and state funding it receives. Without these funds, Transit would be unable to operate or replace its capital assets. Further, operating grants pay approximately 80% of its operating costs. With continued operating and capital funding from federal and state grants, the fund will remain healthy.

As shown in Table 16 Transit, operating revenues exceed expenditures by $0.8 million, resulting in an ending capital cash balance of $26.6 million for June 30, 2023. The operating expenditures are higher than budget by $1.7 million mainly due to the increase in CNG fuel and diesel fuel. While highly dependent upon grant funding, Transit is financially sound.

Table 16
OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 16,716,800 16,680,800 (36,000)
Reimbursements 622,200 631,700 9,500
Capital Grants 4,949,600 4,949,600 -
TOTAL REVENUES 22,288,600 22,262,100 (26,500)

EXPENSES
Personnel 1,128,700 1,040,700 (88,000)
Operations & Maintenance 15,020,300 16,268,600 1,248,300 Depreciation 2,743,700 3,053,300 309,600
Allocated Costs 929,300 1,119,000 189,700 TOTAL OPERATING EXPENSES 19,822,000 21,481,600 1,659,600 RESOURCES AVAILABLE FOR CAPITAL 2,466,600 780,500 (1,686,100)

CASH AVAILABLE FOR CAPITAL ASSETS
Beginning Cash 35,817,900 35,817,900 -
Add: Resources Available for Capital 2,466,600 780,500 (1,686,100) Add: Depreciation Transfer 2,743,700 3,053,300 309,600 Less: Capital Purchases Authorized (13,098,894) (13,098,900) (6) ENDING CAPITAL ASSET CASH 27,929,306 26,552,800 (1,376,506) * farebox ratio is still exempt because of COVID -19

TRANSIT
22/23 BUDGET PROJECTION
Visalia City Council Printed on 4/14/2023Page 25 of 33
powered by Legistar™
31 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 16,716,800 16,680,800 (36,000)
Reimbursements 622,200 631,700 9,500
Capital Grants 4,949,600 4,949,600 -
TOTAL REVENUES 22,288,600 22,262,100 (26,500)

TRANSIT
22/23 BUDGET PROJECTION
The V-LINE service to Fresno is in the sixth year of operations as shown in Table 17, VLINE Ridership. The V- LINE operates from Visalia to Fresno with stops at the Transit Center, Visalia Airport, Fresno Airport, Fresno State, and the Fresno Courthouse Park. Ridership was down in the previous years due to COVID-19 travel restrictions but is projected to be back up to pre-covid numbers.

Table 17 VLINE Ridership
FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 Projected
FY 22/23
VLINE Ridership 5,810 17,811 26,740 29,200 22,822 7,929 15,412 25,406 The City is required under the Transportation Development Act to maintain a fare revenue- to- operating expense ratio (farebox recovery) of 20%. Since COVID-19, this requirement has been waived. The last year the farebox ratio was met was in fiscal year 18/19 as shown in Table 18, Transit Fare Revenue Ratio.

Table 18
Visalia City Council Printed on 4/14/2023Page 26 of 33
powered by Legistar™
32 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

FARE REVENUE RATIO
FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 Projected
FY 22/23
Fare Revenue 2,243,208 2,026,911 2,464,641 2,286,266 947,160 1,698,655 2,434,300 Operating Expenses 12,921,680 12,199,748 13,909,277 17,191,904 16,706,194 22,511,858 20,849,900 Less: Deprecitaion (2,357,872) (2,879,070) (2,940,883) (2,977,857) (2,720,393) (2,935,953) (2,960,800) Net Operating Expenses 10,563,808 9,320,678 10,968,394 14,214,047 13,985,801 19,575,905 17,889,100 Ratio 21% 22% 22% 16% 7% 9% 14%
Fare Box Ratio
On a Nationwide level, Transit has been experiencing decreased ridership within Transit Agencies of similar size and geographical uniqueness as Visalia Transit. Fare revenues are projected to be back to pre-covid levels (18/19). Staff is currently looking at ways to reduce costs and ways to increase ridership.

Recommended Action: Continue to monitor funding of Transit and continue to identify ways to reduce operating costs.

Animal Services
Animal Services collects revenues from animal licensing, permit fees, shelter fees, kennel fees, and other various fees. The revenue collected is insufficient to cover operating costs. As a result, the fund has an operating loss which is anticipated and approved by City Council because Animal Control is a state mandated function that communities must provide. Much like the Convention Center, the operation requires an operating subsidy from the General Fund.

The revenues for the Animal Control Service Fund are projected to be down from budget by$60,500 and up from last year by $5,500. Expenditures are projected to be slightly down from budget by $51,800 and up from last year by $103,300. Most of this increase is due to supplies costing more and the utility increases. The Animal Service Fund is projected to have an operating deficit of $1.3 million for FY 22/23, as shown in Table 19, Animal Services. The deficit combined with the annual debt payment for the Animal Control Facility will require a $1.8 million subsidy from the General Fund.

Table 19
OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 696,100 635,600 (60,500) TOTAL REVENUES 696,100 635,600 (60,500)

EXPENSES
Personnel 1,108,100 1,036,300 (71,800)
Operations & Maintenance 564,600 586,000 21,400 Depreciation 172,000 172,000 -
Allocated Costs 181,900 180,500 (1,400) TOTAL OPERATING EXPENSES 2,026,600 1,974,800 (51,800) OPERATING SHORTFALL (1,330,500) (1,339,200) (8,700)

AMOUNT TO BE SUBSIDIZED
Operating Shortfall (1,330,500) (1,339,200) (8,700) Add: Depreciation Transfer from Operation 172,000 172,000 - Debt Payment (567,300) (567,300) -
Capital Purchases (91,657) (91,700) (43) ENDING CASH = GENERAL FUND TRANSFER (1,817,457) (1,826,200) (8,743)

ANIMAL CONTROL
22/23 BUDGET PROJECTION
Visalia City Council Printed on 4/14/2023Page 27 of 33
powered by Legistar™
33 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 696,100 635,600 (60,500) TOTAL REVENUES 696,100 635,600 (60,500)

ANIMAL CONTROL
22/23 BUDGET PROJECTION
Animal Services expenditures are rising faster than revenues as shown in Table 20 Animal Services Operating Revenues/Expenditure Comparison. Staff will be working on a plan to increase revenues and decrease expenditures once the new Animal Services Manager has been hired. In addition, this function has recently been moved to the Parks and Recreation Director to help oversee the operations.

Table 20
Animal Services Operating Revenues/Expenditure Comparison FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 Projected FY 22/23
Revenues $ 489,240 $ 474,896 $ 623,235 $ 602,028 $ 698,029 $ 630,075 $ 635,600 Expenditures $(1,513,144) $(1,607,448) $(1,699,168) $(1,848,209) $(1,847,705) $(1,887,676) $(1,974,800) Surplus/(Shortfall) $(1,023,904) $(1,132,552) $(1,075,933) $(1,246,181) $(1,149,676) $(1,257,601) $(1,339,200) Recommended Action: Staff will continue to look for ways to increase revenues and decrease operating costs to lower the General Fund subsidy.

Enterprise Utilities Funds
The City has three utility operations: sewer, storm water and solid waste. These three utilities operate very efficiently and tend to be among the lowest costs for similar services in the South San Joaquin Visalia City Council Printed on 4/14/2023Page 28 of 33
powered by Legistar™
34 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.
very efficiently and tend to be among the lowest costs for similar services in the South San Joaquin Valley. Chart 3, Combined Residential Solid Waste and Sewer Rates, compares the combined residential solid waste and sewer rates to other local communities. Visalia’scombined residential sewer and solid waste rates are less than the average utility rate among Valley communities.

Chart 3
Wastewater
The Water Reclamation Facility upgrade was completed in 2018 which brings wastewater discharge to tertiary standards: clean enough for all uses except drinking water. The project cost over $114 million and received $18 million in grants to help offset the cost. The project received a State loan of $96.4 million that will be paid back over 30 years at 2.1% interest. The loan payment is $4.4 million annually and will be completed in FY 2047/48.

In anticipation of the project and additional maintenance cost, the Wastewater rates were increased over a three year period, with the last rate increase in 2012. Staff does not anticipate another rate increase in this two year budget cycle. The projected revenues for FY 22/23 are up from budget by $2 million as shown in Table 21, Wastewater. This increase is mainly due to growth in sewer accounts. The operating expenditures are projected to be up from budget by $1.5 million. The operating increases are due to more equipment maintenance, testing, and chemicals that are required with the upgraded facility. In addition, chemical cost has risen significantly due to inflation.

Table 21
OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 24,055,000 25,912,300 1,857,300
Walnuts, Pecans, and Misc Revenues 357,100 467,200 110,100 TOTAL REVENUES 24,412,100 26,379,500 1,967,400

EXPENSES
Personnel 3,482,390 3,116,760 (365,630)
Operations & Maintenance 9,026,216 10,895,475 1,869,259 Services Provided 5,363,100 5,363,100 -
Allocated Costs and Depreciation 6,269,900 6,299,000 29,100 TOTAL OPERATING EXPENSES 24,141,606 25,674,335 1,532,729 RESOURCES AVAILABLE FOR CAPITAL 270,494 705,165 434,671

CASH AVAILABLE FOR CAPITAL ASSETS
Beginning Cash 31,683,200 31,683,200 -
Add: Resources Available for Capital 270,494 705,165 434,671 Add: Depreciation Transfer 5,485,300 5,485,300 - Less: WWTP State Loan (4,635,200) (4,635,200) - Less: Capital Purchases Authorized (10,196,400) (10,196,400) - ENDING CAPITAL ASSET CASH 22,607,394 23,042,065 434,671

WATER RECLAMATION FACILITY
22/23 BUDGET PROJECTION
Visalia City Council Printed on 4/14/2023Page 29 of 33
powered by Legistar™
35 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 24,055,000 25,912,300 1,857,300
Walnuts, Pecans, and Misc Revenues 357,100 467,200 110,100 TOTAL REVENUES 24,412,100 26,379,500 1,967,400

WATER RECLAMATION FACILITY
22/23 BUDGET PROJECTION
Recommended Action: Staff will continue to monitor the revenues and expenditures.

Solid Waste
Solid Waste is currently projected to meet the objective of covering operating costs as shown on Table 22, Solid Waste. The projected ending capital cash balance for June 30, 2023 is $8.7 million. The main reason why the Solid Waste operation has been able to accumulate cash in the past is that the State had given the City grants to purchase clean air vehicles.

The City is not projecting to receive grants in the future due to the grants becoming more competitive and harder to receive due to the entire fleet being CNG.

The expenses are projected to be up by $0.5 million from budget. This is mainly due to CNG fuel usage, recycling fees and landfill charges. The fund has several large projects that need to be completed that will use half of its cash. These projects include replacing 18 trucks and constructing and refurbishing several buildings. These projects will improve operations and will allow the department to operate more efficiently. The last rate change was in 2011 and staff does not anticipate another rate increase in this two year budget cycle.

Table 22
OPERATIONS Budget Projected Variance

REVENUES
Charges & Fess 22,233,700 22,998,800 765,100
Reimbursements 75,200 73,200 (2,000) TOTAL REVENUES 22,308,900 23,072,000 763,100

EXPENSES
Personnel 6,474,200 6,467,300 (6,900)
Operations & Maintenance 5,415,500 5,459,200 43,700 Depreciation 924,100 1,433,500 509,400
Allocated Costs 986,500 993,500 7,000 TOTAL OPERATING EXPENSES 13,800,300 14,353,500 553,200 RESOURCES AVAILABLE FOR CAPITAL 8,508,600 8,718,500 209,900

CASH AVAILABLE FOR CAPITAL ASSETS
Beginning Cash 31,805,300 31,805,300 -
Add: Resources Available for Capital 8,508,600 8,718,500 209,900 Add: Depreciation Transfer 924,100 1,433,500 509,400 Less: Capital Purchases (11,002,117) (11,002,100) 17 ENDING CAPITAL ASSET CASH 30,235,883 30,955,200 719,317

SOLID WASTE
22/23 BUDGET PROJECTION
Visalia City Council Printed on 4/14/2023Page 30 of 33
powered by Legistar™
36 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

OPERATIONS Budget Projected Variance

REVENUES
Charges & Fess 22,233,700 22,998,800 765,100
Reimbursements 75,200 73,200 (2,000) TOTAL REVENUES 22,308,900 23,072,000 763,100

SOLID WASTE
22/23 BUDGET PROJECTION
Recommended Action: Staff will continue to monitor the revenues and expenditures as improvements are implemented in the department.

Storm Sewer
Storm Sewer is projected to have a $0.8 million deficit as shown in Table 23, Storm Sewer.

The Storm Sewer fund has been operating with a shortfall and to mitigate this, Council authorized a ballot measure to use a portion the Kaweah Dam/Storm Water Facility Maintenance Fee for storm sewer maintenance.

The ballot measure was passed on March 18, 2013 with 58.47% of the property owners voting yes to continue the fee and expand the use of it. The Storm Sewer fund now receives an additional $300,000 annually for local storm water costs, ensuring that the current system operates at full capacity.

Visalia City Council Printed on 4/14/2023Page 31 of 33
powered by Legistar™
37 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Table 23
OPERATIONS Budget Projected Variance

REVENUES
Charges & Fees 1,460,100 1,460,100 -
Reimbursements 4,300 4,300 - Kaweah Lake Transfer -
TOTAL REVENUES 1,464,400 1,464,400 -

EXPENSES
Personnel 639,700 639,000 (700)
Operations & Maintenance 586,300 600,600 14,300 Depreciation 813,700 824,200 10,500
Allocated Costs 174,700 174,600 (100) TOTAL OPERATING EXPENSES 2,214,400 2,238,400 24,000 RESOURCES AVAILABLE FOR CAPITAL (750,000) (774,000) (24,000)

CASH AVAILABLE FOR CAPITAL ASSETS
Beginning Cash 762,400 762,400 -
Add: Resources Available for Capital (750,000) (774,000) (24,000) Add: Depreciation Transfer 813,700 824,200 10,500 Less: Capital Purchases (402,672) (402,700) (28) ENDING CAPTIAL ASSET CASH 423,428 409,900 (13,528)

STORM SEWER
22/23 BUDGET PROJECTION
Staff is currently working with a consultant to update the City’s Storm Master Plan which will eventually outline the storm capital needs and funding. Once completed, staff will return to Council to realign within the year.

Recommended Action: Staff will continue to work with the consultant and return to Council with a recommendation to increase fees.

Summary
Visalia’s economy continues to have growth. Building permits are slightly down and the housing market is still holding strong as interest rates rise. Visalia continues to have growth from people relocating here from areas that have a higher cost of living due to retiring or permanently working from home. The City has also benefited from strong growth in the industrial park. While the majority of the revenue forecasts are showing growth, we must recognize that other foreign and domestic factors (i.e. inflation, housing prices, supply chain disruptions, etc.) could negatively impact the growth and expansion of our local economy. Any of these factors could also cause another economic downturn. Staff is optimistic, but acknowledges must also be fiscally responsible by having sufficient reserves, balanced budgets, and prudent spending policies.

Visalia City Council Printed on 4/14/2023Page 32 of 33
powered by Legistar™
38 File #: 23-0080 Agenda Date: 4/17/2023 Agenda #: 2.

Fiscal Impact:

None
Prior Council Action: N/A
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):

Appropriate additional funds to the Mid Year budget as follows:

General Fund:

1. Appropriate funds for capital projects in the amount of $225,000 in 22/23 and $75,000 in 23/24.

Internal Service Funds:

Vehicle Replacement Fund

1. Appropriate $28,000 to replace wrecked Police motorcycle Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: None
Visalia City Council Printed on 4/14/2023Page 33 of 33
powered by Legistar™
39 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0117 Agenda Date: 4/17/2023 Agenda #: 3.

Agenda Item Wording:

Authorization to continue discussions with the Tulare County Regional Transit Agency regarding entering into a ‘MicroTransit Pilot’partnership between The City of Visalia and the Tulare County Regional Transit Agency (TCRTA).

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

Angelina DeRossett, Transit Manager, [email protected], (559) 713-4591 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:

Staff recommends that City Council receive a presentation and authorize staff to continue to have open discussions with the Tulare County Regional Transit Agency (Agency) regarding the scope of work for a Micro Trasit pilot project. Furthermore, staff requests that City Council will authorize staff to continue to coordinate with TCRTA with the goal of establishing a cooperative agreement to partner on 3-year region-wide micro transit pilot project that can be brought back to City Council for further consideration if the pilot program is appropriate for Visalia..

Summary:

Visalia Transit has an opportunity to partner with Tulare County Regional Transit Agency, (TCRTA) at no cost to the City of Visalia, to provide micro transit (on demand) services under a 3-year pilot program. This pilot program will not replace any existing Visalia Transit services, only supplement existing. At the completion of the pilot, and after various metrics and performance measurements are collected, the City of Visalia will have the opportunity to establish its own, continue to partner with TCRTA, or cease the micro transit service. This staff report will introduce the pilot program and the associated components: reservation software system and infrastructure assets. If City Council agrees with the pilot concept, Staff will continue discussions with the goal of bringing forth a cooperative agreement with TCRTA if the final pilot program is appropriate for Visalia.

Background Discussion:

Transit ridership numbers across the nation have suffered as a result of the pandemic. Like many other agencies, Visalia’sTransit ridership numbers are still hovering around 55% of pre-pandemic ridership numbers. Prior to the pandemic, a farebox recovery ratio was the performance metric that measured the efficiency of transit. As an agency, the City was required to recover 20% of operating costs through fares. While staff and Tulare County Association of Governments (TCAG) are working on revamping and revising the current performance metrics, transit is typically funded based on a number of metrics that could and will likely include ridership efficiency.

In October of 2022, the City of Visalia was approached by TCRTA with an opportunity to partner in a Visalia City Council Printed on 4/14/2023Page 1 of 4
powered by Legistar™
40 File #: 23-0117 Agenda Date: 4/17/2023 Agenda #: 3.

In October of 2022, the City of Visalia was approached by TCRTA with an opportunity to partner in a Micro Transit option like what has been offered within the City of Porterville. Visalia Transit has been working with TCRTA to obtain specifics on operations and software use, as well as assets and logistics. What has developed is potentially a 3-year pilot in partnership with the TCRTA for most of urbanized area of Tulare County and the rural area between.

Over the last six months, TCRTA staff have evaluated and reviewed micro transit software vendors.

TCRTA included Visalia Transit in this research and ultimately based on the system capabilities, experience and proven track record Via Inc. (Via) was selected. Via will provide the software service during the course of this pilot. Drivers and vehicles of this pilot will be handled by the TCRTA operations contract. In the event that there is a driver shortage or service disruption, Via is equipped to quickly take over operations of this pilot project for the region within an 8 week time frame. Via operates many services in a hybrid approach with numerous clients as well as a combination of agency or contractor drivers blended with Via to supplement service where needed.

Micro transit systems are popping up all over in an effort to create more efficient and direct connections within existing transit systems. Micro transit is a system comprised of smaller passenger vehicles, rather than large buses, that passengers can access by utilizing an application on their phone or accessible web portal and booking trips that will get them from point A to point B within a specified region. Passengers will also be offered intermodal trips for itineraries that can take advantage of the existing fixed route service and connect to neighboring communities. For this project, TCRTA is procuring minivans through a piggyback option on the CalAct contract. These vehicles have a 5 passenger per vehicle capacity. Region wide there will be roughly 50 of these Micro transit vehicles with about 15-20 designated specifically for the Visalia region. The TCRTA will procure 30 of the 5 passenger mini vans with the balance of the vehicles coming from the existing TCRTA fleet. These rides are still meant to be shared with other passengers so trips are planned in an automated software system in a more efficient way and the smaller vehicles require a lot less time, money and resources to maintain. Furthermore, this micro transit system becomes an ’On Demand’service where the users experience a similar service that is provided by Uber or Lyft and the fare is paid through the app.

During this 3-year pilot Visalia Transit and the TCRTA will work together to analyze the data that the system collects in order to establish performance metrics that can be utilized in creating a more efficient system. The system is flexible and customizable and is designed with the ability to make real time adjustments if needed. For example, some real time adjustments may include; wait time or vehicle availability in specified areas. This will help the city to understand the successes and failures of the pilot and assist with potential plans to recreate a Visalia Transit system (including the fixed routes) following the completion of the pilot program. Finally, if the pilot is successful and something City Council wishes to continue, TCRTA and the City will formally conduct a Request for Proposals (RFP) for a multiyear contract specifically for the software system.

Data that will be collected:

The data will be monitored to determine the popularity and utilization of the service. Staff will review total miles traveled and the most popular days and times that the service is used. With the collected data we will be able to determine if the popularity of the service is from new riders or previous fixed route riders. We are anticipating that there will be some cannibalization of the current fixed route system during the pilot however it will not be encouraged and rather, passengers will be provided an option within the Via application to choose the micro transit option at a flat fee higher rate (fare yet to be determined) or the fixed route at the regular fixed route fare of $1.75 per trip. This pilot will be Visalia City Council Printed on 4/14/2023Page 2 of 4
powered by Legistar™
41 File #: 23-0117 Agenda Date: 4/17/2023 Agenda #: 3.
be determined) or the fixed route at the regular fixed route fare of $1.75 per trip. This pilot will be placed as a supplement to the existing fixed route system for comparison purposes. Staff will fine tune and make adjustments to the pilot program as it progresses. At the end of the 3-year pilot, Visalia Transit and TCRTA staff will partner in conducting an RFP with very specific parameters that were learned through the pilot to bring a permanent micro transit service to the region if City Council so chooses.

Additional Questions and Items to work through:

Visalia Transit and TCRTA staff will continue to work towards finding a clear path and some answers for additional questions. The Goal for the entire region is to offer one seamless system without separate rules or fare structures for passengers. Some additional questions that staff will work together to find answers for are as follows:

1. What is the fare structure?
Will each urban area have a flat rate and how does that integrate with the rural areas? Will fares outside the urban areas have a distance based fee?

2. What are the scheduling parameters regarding shared rides? How much time will be added to an existing ride when a secondary passenger is added to that vehicle?

3. How often will adjustments to the overall pilot be made? If too many adjustments are made, collected data will be inaccurate.

4. What will the hours of operation will be?

5. Any additional questions staff or City Council may want to include.

Fiscal Impact:

There is no fiscal impact to the City. The pilot is being supported by funds set aside by the TCRTA and our local MPO TCAG (Tulare County Association of Governments) to cover the costs of a region- wide micro transit pilot.

Prior Council Action:

N/A
Other:

N/A
Alternatives:

City Council may direct staff to not participate with the TCRTA pilot and not pursue a micro transit option. Staff would seek alternative methods to combat inefficiencies and low ridership by other means.

City Council could direct staff to seek a different vendor for our own (separate from TCRTA) software to facilitate a micro transit option.

Recommended Motion (and Alternative Motions if expected):

I move to authorize staff to continue discussions with TCRTA regarding a micro transit option and direct staff to return with a formal cooperative agreement for a 3-year pilot program if the final pilot program is appropriate for Visalia.

Visalia City Council Printed on 4/14/2023Page 3 of 4
powered by Legistar™
42 File #: 23-0117 Agenda Date: 4/17/2023 Agenda #: 3.

Environmental Assessment Status:

N/A
CEQA Review:

N/A
Attachments:

Presentation
TCRTA Board Staff Report
TCRTA Board Minutes
Visalia City Council Printed on 4/14/2023Page 4 of 4
powered by Legistar™
43 April 2023
Microtransit service pilot
Visalia Council meeting
44 Today’s Purpose
Staff Recommendation
• Council to receive presentation and
report
• Council to direct Staff on next steps
• Staff recommends to continue
working with TCRTA and return to
Council.
45 3
What is Microtransit?
Microtransit (sometimes called “on-demand
transit”) is tech-enabled transportation where
routing algorithms use real-time, on-the-
ground information to group passengers into
shared rides.

Microtransit
46 3 Year Pilot Project
Summary
• Partnership between Visalia Transit,
and TCRTA, with Via as the
technology vendor.
• TCRTA will use their existing drivers
to operate.
• TCRTA & TCAG funding project
• Via will provide the Micro Transit
software
47 On-Demand Service
Design
5 48
Microtransit is Ideal for Tulare County
6 Local & Regional Connectivity
Urban, suburban + rural populations.

Individualized Rider Experience
General population, students, seniors,
Wheelchair accessible vehicles, Dial-A-
Ride.

Cost Effectiveness
Large zone with varying requirements:
urban areas require short wait times, rural
areas require more reasonable transit
options.

Custom Ride Parameters by Zone
Wait times, curb-to-curb, door-to-door,
fare differential and multimodal
connectivity where applicable.
49 7
Greater Visalia Area
(95 mile2 zone; 15-19 vehicles)
Zone Review for On-demand service
Rationale for Zone Selection: A combined
zone will help enable travel across the Visalia
region where there is little direct connectivity
today
● Demographics:
○ Population: 232,800
○ % of People in poverty: 17%
○ % of Car Free households: 5%
○ % of non-white residents: 67%
Use Cases: In addition to helping residents
access employment areas, the service would
also provide access to businesses such as
the Walmart on Caldwell, several Save Marts
50 Data to be collected
• Popularity of service
• Most utilized zones
• Pickup and drop off location data
51 Via Technology
9 52
10 On-Demand
Booking
Confidential and Trade Secret
53 Intermodal
Trips
● Riders will be given
options for all transit
services provided by
TCRTA and Visalia
Transit
● Connect rural
communities to the
transit service
● Receive real time
updates through the
app or web portal
11 Confidential and Trade Secret
54 Additional Questions to work
through
12 55
• What is the Fare structure?
• Flat rate, verses mileage rate
• What are the scheduling parameters regarding shared
rides?
• How much time will we allow to be added to an
existing ride when a secondary passenger is added?
• How often will adjustments to the pilot be made?
• If too many adjustments are made, the collected data
may not be accurate.
• What will the hours of operation be?
56 Questions from Council?
57 Tulare County Regional Transit Agency

AGENDA ITEM VIII-A
February 22, 2023
Prepared by Richard Tree, Executive Director

SUBJECT:

Action: Approve Conditions to Expand On-Demand Service BACKGROUND:

On-Demand transportation has become a tool that has demon strated great promise for many transit agencies across the country where there is a mix of urban and ru ral communities being served. TCRT A has direct experience with this service model as it has been provided in Porterville since 2020 under the service nam e transPORT which uses Uber ’s technology to schedule and dispatch trips to riders. tra nsPORT has successfully provided resident s of Porterville with significantly greater access to their community, employment, and healthcare , and TCRTA wou ld like to make s imilar services available across the majority of Tulare C ounty. In 2022, Uber provided notice that it would no longer be investing in the product that is b eing used to operate transPORT and has informed staff that the current agreement will expire on June 30, 2023.

TCRTA is currently in a position where we must either stop the operations of transPORT which will a ffect nearly 200 pe ople per day who rely on this service or expedite the implementation of an On-Demand transit operations management software platform to replace what was provided by Uber.

DISCUSSION:

Because TCRTA has direct experience with technology to operate On-Demand transit services staff understands what is required to operate a service like transPORT. Over the course of the past six months, staff from both TCRTA and Visalia Transit have done extensive research o n the On -Demand technology market. Through this process, we have determined that Via is uniquely positioned to provide the greatest value to TCRTA and our communities, more than any other vendor who provides similar technology.

In addition to providing TCRTA with a technology platform that is the most widely used around the world for On -Demand transportation, Via can provide a wide variety of services that no other On -Demand tech nology provider is capable of . Some of these unique offerings include:

• Service Design Expertise – Made up of professional transit consultants, the Via Strategies team is available to TCRTA to help design a transp ortation service that evolves with our goal s. I n addition to the ir subject matter e xpertise, Via’s team uses many sophisticated tools integrated with data from over 600 partners to help make better educated decisions on service configuration.

• Student Transportation – As TCRTA looks to the future o f our operations as it relates to transporting students, Via’s experience in both providing technology for and consulting services for student transportation operations can be leveraged. 58 • Transportation as a Service – If labor and vehicle availabilit y is d isrupted, TCRTA can leverage Via to help launch services that supplement our operations very quickly in a turnkey approach. These services include everything needed to operate On-Demand transportation.

• Ongoing Support – Via provides ongoing support servic es over the life of the deployment, including 24/7 technical support, community engagement and rider growth advisory, and a dedicated Partner Success Manager.

• Revenue Generation – Via works with transit agencies to design and implement advertising solutions that are tailored to our unique goals at no add itional cost, which help our partners save as much as 50% of the cost of the software by generating non-fare revenue.

• Integration With Existing Services – When integrating On-Demand into transit operations where fixed route service exists, a key factor for success is ensuring that riders are provided with multi -modal options. Via has grown an expertise in integrating the On-Demand services with transit operations that includes logic to ensure they are compl ementary and do not compete with one another by using automated anti-cannibalization logic.

TCRTA and Visalia staff have worked closely with Via to design a regional On-Demand service that maximizes the benefits to our communities across T ulare County. Th e proposed technology will be implemented in multiple phases to support On -Demand, ADA Paratransit, Dial -a-Ride, and NEMT services throughout the region which will be operated by TCRTA. The phases are described below:

1. Migrate Porterville Service Zone (Por terville, Strathmore, Lindsay) from Uber to Via.

2. Deploy services in Urban areas – Visalia, Tulare, Exe ter, Farmersville, Dinuba, and Woodlake.

3. Deploy services in Rural areas.

4. Deploy concierge portal for healthcare organizations.

5. Deploy NEMT services.

Typical implementation schedules like TCRTA’s planned service design average twelve weeks after the contract has been executed, beginning work upon award to optim ize for success. However, Via is willing to adjust their standard implementation timeline based on TCRTA’s preferred launch timeline. Below is a brief description of each sta ge of the recommended twelve-week implementation timeline:

Stage 1 – Scoping & Branding Finalization and Vehicle Procurement (Weeks 1-3)
Stage 2 – System Setup and Marketing
(Weeks 4-7)
Stage 3 – Operations Prep
(Weeks 8-9)
Stage 4 – Pre-Launch
(Weeks 10-11)
Stage 5 - Launch

59 Staff is seeking approval to negotiate a three -year agreement with Via Mobility, LLC to pilot the regional On -Demand ser vice. At the con clusion of th e sec ond year, TCRTA and Visalia will evaluate the performance and collectively issue a request for proposals for a long-term agreement at the conclusion of the final year of the pilot (Year 3).

Since the procurement of the On -Demand software is funded wi th local transportation dollars, the Federal Transit Administration (FTA) pr ocurement req uirements do not apply to this procurement. Any future procurements of equipment that use FTA funds must be in accordance with the FTA Procurement Circular 4220.1F, by requesting competitive proposals.

The estimated cost of On-Demand software includes a one -time installation fee of $100,000, a one -time purchase of tablet s and mounting equipment of $82,500, a nd a monthly service fee of $400 per vehicle.

RECOMMENDATION:

That the Tulare County Regional Transit Agency Board of Directors:

1. Approve regional On -Demand services to include all TCRTA member agencies and the City of Visalia, pending Visalia City Council approval; and

2. Authorize the Executive Director to enter contract negotiations with Via Mobility, LLC; and

3. Approve the anticipated On -Demand software and equipment budget of $422,530 for Year 1 and $264,000 for Year 2 and Year 3.

FISCAL IMPACT:

On-Demand software services is fun ded with local transportation funds t hat have been budgeted in the 2022 Oper ating Budget. On -Demand operating, and capital expenses (vehicles) are partially funded from the Federal Transit Administration (FTA) and other state and local funds.

ATTACHMENT:

None
60 Item VII-A

Tulare County Regional Transit Agency
Minutes
******
February 22, 2023, 6:00 p.m.

Members Present: Thusu, Riddle, Gomez, Cerros, Weyhrauch, Sigala, & Valero Members Absent: Mendoza & Correa
Alternates: Beltran
Ex Officio Present: Georgina Landecho & Kellie Carrillo Staff Present: Rich Tree, Albert Barragan, Teresa Ortega, Jennie Miller, Olivia Forte, Leslie Davis, Servando Quintanilla, and
Brideget Moore
Counsel Present: Patrick Beck
I. CALL TO ORDER:

Chair Sigala called the meeting to order at 6:00 p.m.

II. PLEDGE OF ALLEGIANCE
Led by Chair Sigala.

III. PUBLIC COMMENT:

No public comments were heard.

IV. REPORTS:

None
V. PRESENTATIONS:

None
VI. INFORMATIONAL ITEMS:

None
VII. CONSENT CALENDAR ITEMS:

A. Approve minutes of January and February Meetings
B. Reaffirm Conditions of State Assembly Bill 361 to Continue Remote Attendance
Upon motion by Member Gomez and seconded by Member Valero the Tulare County Regional Transit Agency unanimously approved Items A and B as presented.

C. Receive and File Financial Statement as of January 31, 2023 Upon motion by Member Riddle and seconded by Member Valero the Tulare County Regional Transit Agency unanimously approved Items C as presented.

VIII. ACTION AND INFORMATION ITEMS:

A. Approve Conditions to Expand On-Demand Service
Mr. Tree reported that staff is seeking approval to negotiate a three-year agreement with Via Mobility, LLC to pilot the regional On-Demand service; at the conclusion of the second year, TCRTA and Visalia would evaluate the performance and collectively issue a request for proposals for a long-term agreement at the conclusion of the final year of the pilot. Since the procurement of the On-Demand software is funded with local transportation dollars, the Federal Transit Administration (FTA) procurement requirements do not apply to this procurement. Any future procurements of equipment that use FTA funds must be in accordance with the FTA Procurement Circular 61 Item VII-A

4220.1F, by requesting competitive proposals. The estimated cost of On- Demand software includes a one-time installation fee of $100,000, a one-time purchase of tablets and mounting equipment of $82,500, and a monthly service fee of $400 per vehicle.

Upon motion by Member Thusu and seconded by Member Gomez the Tulare County Regional Transit Agency unanimously approved Items A as presented.

B. Resolution 2023-02 Approving Agreement with the Central Valley Regional Center
Mr. Tree commented that CVRC is seeking to form a partnership with TCRTA to offer transportation services for their clients. CVRC is requesting that TCRTA be setup as a vendor for TCRTA to bill CVRC for trips performed on a monthly basis. Clients authorized for public transportation services will be the responsibility of CVRC.

Upon motion by Member Valero and seconded by Member Cerros the Tulare County Regional Transit Agency unanimously approved Items B as presented.

C. Approve the Creation of an Ad Hoc Committee on Student Transportation
Mr. Tree stated staff is proposing that the Ad Hoc Committee on Student Transportation collaboratively work with staff and the Porterville Unified School District to identify risks and opportunities associated with administering a student transportation program, and draft recommendations to act on them. The proposed Ad Hoc Committee would be established for the duration of the Fiscal Year 2022-2023 and Fiscal Year 2023-2024.

Upon motion by Member Gomez and seconded by Member Thusu the Tulare County Regional Transit Agency unanimously approved Items C as presented.

D. Approve Virtual Participation of the Public at Board Ms. Miller stated that at the Board Meeting of January 30, 2023, the Board of Directors discussed changes to remote participation by Board members after the declared COVID-19 state of emergency ends on February 28, 2023, and Board members would participate in-person at all future Board Meetings, except as otherwise allowed under AB 2449. Furthermore, at the Board’s request staff will be reaching out to each member agency to determine alternate meeting sites for future meetings.

Upon motion by Member Gomez and seconded by Member Valero the Tulare County Regional Transit Agency unanimously approved Items D as presented.

E. Discussion: Consideration to Amend Joint Powers Agreement and Bylaws to Include Student Transportation
Mr. Tree Staff will provide an update on the development of the services agreement between TCRTA and PUSD, staffing considerations, and guidance provided by the FTA’s Deputy Administrator for Region IX.

F. Information: Conflict of Interest Code (Form 700) Due April 1, 2023 Mr. Tree reminded Board that Form 700 are due by April 1, 2023

62 Item VII-A

IX. OTHER BUSINESS:

A. Director’s Report
Mr. Tree stated that TCRTA staff helped support efforts to the Tule Rive Tribe of California route 9, staff also took direction to help assist Exeter with transit center project, appointments would be sent to those for the Sustainable Committee, the CALACT conference is coming up and is excited to see what information comes from this conference, and lastly TCRTA is planning to go for transit grants. Mr.Thusu asked questions about funding opportunities.

B. Request from Board Members for Future Agenda Items
None
X. CLOSED SESSION ITEMS:

A. None

XI. ADJOURN
The meeting adjourned at 7:31 p.m. Chair Sigala confirmed the next scheduled meeting of the Tulare County Regional Transit Agency (TCRTA) Board of Directors will be held on March 20, 2023 and will take place at 6:00 p.m. at the Tulare County Regional Transit Agency (TCRTA), 210 N. Church Street, Suite B, Sequoia Conference Room, Visalia, CA 93291.
63 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0073 Agenda Date: 4/17/2023 Agenda #: 4.

Agenda Item Wording:

Receive update report from the Tulare County Economic Development Corporation (TCEDC) and consider membership for FY 23/24 in the amount of $50,000.

Deadline for Action: 4/17/2023
Submitting Department: Community Development
Contact Name and Phone Number: Devon Jones, 4190
Department Recommendation:

Receive update report from the Tulare County Economic Development Corporation (TCEDC) and consider membership for FY 23/24 in the amount of $50,000.

Background Discussion:

The Tulare County Economic Development Corporation (TCEDC) is providing an annual update with the attached presentation and sample project proposal and supplemental site requirement request sheet. Below are some TCEDC activity highlights from the current FY but, generally speaking, staff continues to work closely with TCEDC staff on new lead activity and ongoing marketing of the city.

Both Airica de Oliveira and Sam Diaz are readily available to city staff for any applicable needs and have proven to be very responsive and hard working on the city’s behalf. TCEDC will discuss typical work activities and review some proposed FY 23/24 workplan highlights. Mayor Poochigian is the current chairperson of the TCEDC Board and continues to effect positive change in the organization as a result. Currently, all Tulare County jurisdictions are members of the TCEDC. TCEDC membership for FY 23/24 would be the same amount it has been for the past several years, $50,000, and would be made in quarterly payments. This amount is currently budgeted in the Economic Development division budget. There are also additional services being considered for the next workplan that additional existing Economic Development budget funds could support such as Implan economic impact reporting (if staff had on demand access to generate reports) and moving the real estate database to GIS Webtech format enabling local Esri layers such as existing zoning, land use, and city utility infrastructure.

The TCEDC has 32 projects to-date for the current fiscal year. 16 of those projects were not applicable to the City as 12 were assists in other communities and 4 were either non-Visalia specific or the City did not meet project requirements or staff confirmed there was no interesting in responding. Of the remaining 16 projects, TCEDC submitted 36 sites for the City. In all cases where City was eligible to respond, staff was in contact with TCEDC staff to confirm sites and eligibility criteria.

Visalia City Council Printed on 4/14/2023Page 1 of 3
powered by Legistar™
64 File #: 23-0073 Agenda Date: 4/17/2023 Agenda #: 4.

Fiscal Impact:
$50,000 for FY 23/24 membership which is included in approved City Economic Development Division budget. There is no cost increase from the prior year. Payments will be made quarterly.

Prior Council Action: 6.20.22 - Council approved annual membership with quarterly payments,

7.19.21 - Council approved annual membership, 7.20.20 - Council approved maintaining membership in the TCEDC on a quarter-by-quarter basis, 10.5.20 - Council approved maintaining membership for the remainder of the 20/21 FY.

Visalia City Council Printed on 4/14/2023Page 2 of 3
powered by Legistar™
65 File #: 23-0073 Agenda Date: 4/17/2023 Agenda #: 4.

Other: N/A
Alternatives: Per Council direction
Recommended Motion:

1. I move to approve annual membership in the Tulare County Economic Development Corporation (TCEDC) for FY 23/24 in the amount of $50,000.

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: TCEDC presentation, project proposal sample, supplemental site requirement request sample
Visalia City Council Printed on 4/14/2023Page 3 of 3
powered by Legistar™
66 GREETINGS!
We are excited to submit sites in Tulare County for consideration of location for Project X 2023.

Our county is centrally located in California, halfway between Los Angeles and San Francisco with State Highway 99 & 65, Highway 198 & 190, ideal for transportation logistics. This proposal includes sites that that would be well-suited for your company, given our central location within the State.

We are very interested in learning more about your company. If you have any questions, or would like to discuss any of the sites proposed, we welcome and look forward to future discussions.
309 W Main St, Suite 110, Visalia, CA 93291
P: 559.625.3100 | www.tularecountyedc.com |
[email protected]
Sincerely,
Samuel T. Diaz
Vice President & COO
Tulare County Economic Development Corporation
February 28, 2023

RE: Project X 2023
67 01

TULARE COUNTY

PROPOSED SITES
620 N WESTWOOD AVE

LINDSAY, CA

W NARANJO BLVD
WOODLAKE, CA02
A mini industrial park located
in the small City of Lindsay, CA.

This site is a former Olive
Processing Plant and Cold
Storage operation. Multiple
buildings are available OR the
owner can build a brand new
BTS building to meet
specifications.

New BTS buildings available
in a brand new rural
industrial park in the City of
Woodlake--up to 100,000 sq.
ft. buildings available. This
location is already home to
multiple cannabis and other
related business operations.
03 NWC PLAZA DR. & RIGGIN AVE

VISALIA, CA
150 acres of Industrial zoned
land for BTS buildings up to 1M
sq. ft. Developer is interested in
erecting a building with
project's specifications, within
the project's timeframe.

Located less than 2 miles from
CA-99 in established Visalia
Industrial Park.
68 SITE #1:

LINDSAY, CA
620 N WESTWOOD AVE
69 SITE #2:

WOODLAKE, CA

W NARANJO BLVD
70 SITE #3:

VISALIA, CA
NWC OF PLAZA DR. & RIGGIN AVE.

BTS options up to 1M sq. ft.

Located in established, Visalia
Industrial Park
Less than 2 miles from HWY
KEY FEATURES:
71 SUMMARY

INCENTIVES-STATE / FEDERAL / LOCAL
Up to $10,000 local cash incentives to offset
permitting costs or other hard costs associated
with the project.

The EDC will help in accessing state incentives
eligible for your project such as the California
Hiring Tax Credits and will provide consultative
assistance in applying for Cal Competes Tax
Credit, including providing any analysis that can
assist in attaining the tax credits.

The EDC manages the California Business Incentive
Zone that offers an array of incentives for companies
considering a location in Tulare County. As a
highlight, the following may be available to your
company should you choose a location in Tulare
County:

Our workforce is loyal and dedicated and as diverse
as our industries with many national companies
posting their lowest turnover rates at their Tulare
County operations. Our Workforce Development
Agency provides companies with specialized training
programs and offers recruitment, screening and
hiring services at no cost.

Tulare County is recognized as one of the top three
counties for agricultural production in the nation and
a top exporter of products in the U.S. Our central
location in California is ideal for freight distribution and it is possible to reach customers with next-day
ground delivery service. Tulare County is equidistant
to the Ports of Long Beach/L.A. and Oakland and
can offer Foreign Trade Zone benefits through our
subzone status with FTZ 226.
309 W Main St, Suite 110, Visalia, CA 93291
P: 559.625.3100 | www.tularecountyedc.com |
[email protected]

LOCATION

LABOR / EMPLOYMENT / TRAINING
The EDC is a not-for-profit corporation
supported by private and public funding
and dedicated to assisting companies
desiring to locate or expand in California.

In this role we are prepared to act as staff
to your company in complete confidence
and without obligation. We look forward to
the opportunity of working with you.
72 BIZ Investment Incentive:

Tulare County has California’s only BIZ Investment
Fund, which provides up to $10,000 for the
company to use for permit application costs or
other hard costs associated with the project. The
EDC provides direct payment to help offset these
project costs.

California Competes Tax Credit:

California provides a credit against state income
taxes and the tax credit is negotiated with the
California Competes Tax Credit Committee. The
EDC has been successful in advocating for
millions in tax credits for companies that have
selected Tulare County as a final location and will
facilitate the application on behalf of the company
to access the maximum amount of credits
available.

Sales & Use Tax Exemption:

The state provides a partial exemption of sales
and use tax on manufacturing equipment and to
modifications related to the manufacturing space.

The EDC works closely with the state in accessing
the tax exemption.

New Employment Hiring Credit:

The state provides a tax credit for hiring qualified
employees that meet certain eligibility and wage
criteria. The EDC’s workforce development
partners work to assist the company in maximizing
the access of these tax credits.

Subsidized Employment:

Up to 100% wage reimbursement is available for
qualified hires through our subsidized employment
program.

Other employment related incentives:

The EDC’s workforce development partners
provide no-cost hiring assistance to the company
and assist to maximize access to federal and state
tax credits as well as local and state training
funds.

In 1998, the eight incorporated cities and county governments formed the California Business Incentive Zone (BIZ), the only one of its kind in California. The BIZ offers an unprecedented array of incentives for companies considering a location in Tulare County. The following represents our preliminary list of incentives available in Tulare County, pending due diligence of the proposed project and site location.

ADDITIONAL INCENTIVES
Interest Free 5 Year Fee Deferral:

Our local cities provide an easy deferred payment plan
for development costs which are interest free and
typically paid over a five (5) year period. Each city
negotiates their own deferral program.

Sales, Property and other tax sharing
arrangements:

Our cities have provided tax sharing arrangements with
companies depending on the revenue received to the
city and the number of jobs created. If the facility is a point of sale, the city may consider negotiating sales tax sharing with the company.

Fast Track Permitting:

Projects have been fast tracked in our communities,
including a 30 day expedited review for an 800,000
square foot distribution center. The cities of Tulare
County are committed to meeting or exceeding the
timelines established for this project.

Recycling Market Development Zone (RMDZ):

Tulare County is home to the Greater So. San Joaquin
Valley RMDZ. The RMDZ provides attractive loans, help
in locating feedstock, streamline permitting and other
incentives to businesses located in designated RMDZ
areas and that manufacture products using materials
diverted from landfills.

Foreign Trade Zone:

Tulare County is included in U.S. Foreign Trade Zone
(FTZ) No. 226. The FTZ is a designated area that is
considered to be outside of U.S. Customs territory for
the purpose of customs duty payments. Savings are
realized in an FTZ through duty deferral, duty
elimination, duty reduction and Merchandise Processing
Fee Savings.

Project Manager:

During the site selection process, the company has
access to a designated EDC project manager and
following a final site selection, the City that is chosen would provide a dedicated staff person who would be
available to the company and their construction team.

CALIFORNIA BUSINESS INCENTIVE ZONE
73 THE CENTER OF CALIFORNIA
Wal-Mart
VF Outdoor
VWR
Patterson Logistics
Best Buy
Joann’s Stores
Millipore Sigma
Candy.com
Bueno Beverage Company
UPS Distribution Hub
Tulare County is the centerpiece for California agriculture and its strength is demonstrated in the diversity of industries and businesses, from farming to food processing and from the manufacturing of packaging materials to advanced technologies. Tulare County is also a center for distribution throughout California and the western U.S., with major distribution facilities of companies including:

GROUND TRANSPORTATION

TO CALIFORNIA & THE WEST
Due to its central location in California, both UPS and FedEx can guarantee next day ground delivery to most of California and northwest Nevada.

UPS has expanded its Visalia hub to become the new Central Valley Regional hub for ground shipments. The expansion includes a new 450,000 sf facility in the Visalia Industrial Park.

OnTrac, a regional delivery service in the Western U.S., consolidated facilities in Kings and Fresno counties to Visalia to become more efficient in their operations.

Golden State Overnight recently completed a new 63,000 sf facility in Visalia to serve as its central distribution hub.

National trucking companies such as Knight Transportation, Ruan and Gardner Trucking have substantial operations in the area to ensure that their customers are effectively served by a central location in California.

Amazon
Ace Hardware
International Paper
BlueScope Steel
American Inc.

Conagra Foods
California Dairies
Diamond Crystal Brands
Advanced Food Products
Ruiz Foods
Serpa Manufacturing
Kawneer Co.

Voltage Multipliers
Hilti USA
Pacific Stihl Inc.

Heilind Electronics
MWI Veterinary Supplies
Service Spring Corp.

Screw Conveyor Corp
Diamond Perforated Metals
Butler Manufacturing
74 WORKFORCE
Service providers in Tulare County can offer an all-fiber network that is less than 5 years old, providing connectivity up to 100 Gbps. Direct connections to top tier data centers in Los Angeles and San Jose, as well as interconnection with most national providers ensures you will have connectivity to your corporate office or reliable and redundant Internet connections. Tulare County’s robust fiber infrastructure can deliver the same high-quality telecommunication services and competitive rates that are typically only available in major metropolitan markets.

LOCAL AVAILABLE TRAINING PROGRAMS

WORLD CLASS FIBER OPTIC INFRASTRUCTURE
As a result of the close working relationships with employers located in Tulare County, the Workforce Investment Board of Tulare County (WIB) is knowledgeable of the skills required by these companies.

Training programs have been developed that include industrial maintenance mechanic; programmable logical controllers; HVAC; forklift driver; industrial welding, and other manufacturing and processing related training. The WIB will work in conjunction with company officials and local community colleges to design and present specialized trainings specific to company standards.

On-the-Job Training – is a local wage reimbursement plan managed by the WIB that is available to businesses when they hire eligible candidates. The WIB will reimburse the company one dollar for every two spent.

Incumbent Worker Training - a local WIB sponsored training that covers the costs of training for skills up-grades of current employees. The training can take place at the worksite or in a classroom setting.

Upgrade On-the-Job Training - this program reimburses employers at 2:1 ratio for training incumbent workers as they train at a higher-level position. The employee must have received a promotion and increase in salary to qualify for this program. A locally provided WIB program, Upgrade OJT’s provide the company with the opportunity to “grow their own” staff and promote from within.

Employment Training Panel (ETP) – is a contractual program managed by the State of California and is funded by utilizing 1% of taxes paid by businesses in the state. ETP is used by business to cover the cost of training their current staff to upgrade their skills and allow the company to remain competitive.
75 TULARE COUNTYWORKFORCEINVESTMENTBOARD, INC.

Full Service at no cost:

The partners of the Employment Connection provide all phases of recruitment and screening at no cost to the employer.

Referrals for drug testing, as well as some advertising assistance is also available.

Customized Recruitment:

Designed to meet your company needs. Professional well-trained staff is available to manage candidate flow, handle the distribution and acceptance of employment applications and verify right-to-work documents.

Employee Referral:

We can refer a large pre-screened candidate pool that will meet your hiring requirements. We can also screen employees for state and federal hiring incentives.

Facilities:

Pre-employment testing facility and administration. Private offices are available for use during the interview process. Large capacity meeting and training rooms are available along with access to copiers, FAX, and Internet. Staff and facilities are also available during non-traditional hours.

Occupational Skills Training:

Educational Institutions are utilized to provide classroom instruction for participants in need of schooling prior to or during job placement. Schools are able to develop curriculum specific to the needs of the employer.

The Tulare County Workforce Investment Board Employment Connection Partners are ready to personally assist you with your business and employment needs.

One Contact Facilitator: To ensure that all resources are being provided.

PROVIDING NO COST CUSTOMIZED

PERSONNEL SERVICES
Provided as a part of a customized training package
Working with company, determine what pre-training is needed Curriculum development can be provided
Staff trainers are available to implement training
Training facilities including computer labs

CUSTOMIZED TRAINING SERVICES
76 Form Entry
Site Name
Site Address
City
State
Zip Code
County
Map Link URL
Site Latitude, Longitude
Minimun Requirements
30 acres of land (Confirm that the proposed site meets the minimum requirements listed below:) 350,000 sqft for proposed building footprint (existing buildings only) (Confirm that the proposed site meets the minimum requirements listed below:) <5 miles distance to highway (Confirm that the proposed site meets the minimum requirements listed below:) <25 miles to nearest international airport (Confirm that the proposed site meets the minimum requirements listed below:) Heavy or Light Industrial Zoning (Confirm that the proposed site meets the minimum requirements listed below:) Industrial Adjacent Zoning and Uses (Confirm that the proposed site meets the minimum requirements listed below:) Clean preliminary environmental and archeological reports (Confirm that the proposed site meets the minimum requirements listed below:) Site / Building Characteristics
Is this an existing/spec building or a greenfield site? Land plot size (acres):

Building Size (square footage):

Office Space (square footage):

Quality Lab (square footage):

Warehouse (square footage):

Manufacturing Floor (square footage):

Clean Room (square footage):

Others, if any (square footage):

Building Class
Construction Material
Ceiling Height
Floor Slab Thickness
Floor Bearing Capacity
Number of Machinery Pits Available
Dimensions of Machinery Pits (if available)
Dock Doors Available
Drive-in Doors Available
Employee Parking Spots Available
Truck Parking Spots Available
HVAC Availability and Location(s) within Building
Onsite Amenities Available (e.g., cafeteria, gym, etc.) Other
Land Development / Timing
Site Building Coverage Ratio (%)
Does coverage ratio only include the building footprint, or does it include parking as well? If other, please explain.

Current state of site (wooded, cleared, graded, etc.) (Is the site prepared for immediate development (greenfield sites) or immediate occupancy (existing buildings)?)
Estimated timing for "shovel-ready" preparations (Is the site prepared for immediate development (greenfield sites) or immediate occupancy (existing buildings)?) Utilities infrastructure in place? (Is the site prepared for immediate development (greenfield sites) or immediate occupancy (existing buildings)?) Describe the topography (e.g., flat, gently rolling, forested, elevations on any part of the site) Elevation change across the site (in feet)
Will the slope create any additional site preparation/construction issues? Will constructing facilities with a maximum exterior height of 40 ft. require additional permitting/approvals? Expansion Potential
Is adjoining land currently available upon which to expand? Describe the topography (e.g., flat, gently rolling, forested, elevations on any part of the site) that could impact onsite expansion Elevation change across the site (in feet)
Will the slope create any additional site preparation/construction issues for future expansion? Is a right of first refusal or long-term option available on adjoining land? Zoning and Surrounding Uses
Current zoning:

Will there be any rezoning requirements for a fill and finish facility? If so, please describe them.

Is this site in an economic empowerment zone, enterprise zone, or other incentive zone?:

How would you characterize the immediate surrounding area (industrial, residential, naturally forested, etc.)?:

Please provide a description of adjacent and immediately proximate uses (if industrial, please indicate specific type of operations and name of company) North:
77 South:

East:

West:

Site Ownership
Is the property wholly controlled by a single owner? If no, how many owners exist and what proportion does each party own? Land Owner(s):

Public / private entity?:

In the case of private ownership, would it be possible for a city / economic development group to purchase or option the property? Are all owners aware of the property being marketed and willing to sell / lease the property? Is the property represented by a broker? If yes, please provide name and contact:

Site Acquisition
Is the property for sale or for lease?
Date available for sale/lease:

Asking sale price ($ per acre):

Asking lease rate (NNN, $ per SF):

Terms (indicate any special considerations):

Is the price "as-is" or does it include required improvements?:

Has a boundary study or Alta Survey been completed for the site? If yes, please provide date of completion:

Geological Site Issues
Has a geotechnical study been completed or soil borings been drilled? If yes, please provide date of completion:

Soil bearing capacity:

Soil conditions/type:

Current ground water level:

Environmental Site Issues
Are there any wetlands on the site?
If yes, please describe and identify date of delineation:

Environmental Phase I complete?
If no, when planned?:

If yes, date Environmental Phase I completed:

If yes, please provide details on any negative findings:

Has an archeological study been conducted? If yes, please provide date of completion:

If yes, please provide details on any negative findings:

Has a wildlife/endangered species study been conducted? If yes, please provide date of completion:

If yes, please provide details on any negative findings:

Environmental Contamination
Is this site classified as brownfield?
Is the site in any way contaminated in its present condition? Flood Plain
Is any part of site in a 100-Year Flood Plain?
Is any part of site in a 500-Year Flood Plain?
Storm Drainage
Is a storm water drainage and retention system in place that can accommodate a manufacturing facility? If no, please indicate process and timing for construction:

Major Highways and Site Access
Is the site constrained by a local roadway?
Are there multiple existing access roads to the site? (yes or no) (explain)
Highway Access (name of closest 4-lane highway):

Highway Access (distance from 4-lane highway to property):

Highway Access (name of closest interstate):

Highway Access (distance from interstate to property):

Is access to the property in need of improvement?
Airports
Closest domestic Commercial Airport Access (airport name, code, and distance to property):

What other commercial airports, if any, are within 1.5 hours of the site? (please indicate approximate distance to each):

Provide information on the manufacturing/pharmaceutical operations that are the largest employers of labor within a 25-mile radius from the site Company 1 (Company name, Location [address/county/city], type of manufacturing operation, number of employees, year established in the community, approximate distance to site)
Company 2 (Company name, Location [address/county/city], type of manufacturing operation, number of employees, year established in the community, approximate distance to site)
Company 3 (Company name, Location [address/county/city], type of manufacturing operation, number of employees, year established in the community, approximate distance to site)
Company 4 (Company name, Location [address/county/city], type of manufacturing operation, number of employees, year established in the community, approximate distance to site)
Company 5 (Company name, Location [address/county/city], type of manufacturing operation, number of employees, year established in the community, approximate distance to site)
Provide information on any testing laboratories, cold storage facilities and warehouses within a 25-mile radius from the site 78 Company 1 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 2 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 3 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 4 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 5 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 6 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 7 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 8 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 9 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Company 10 (Company name, location [address/county/city], type of manufacturing operation [Testing Lab, Warehouse, Cold Storage] , number of employees, approximate distance to site)
Provide any significant recent (last 5 years) pharmaceutical industrial investments within a 25-mile radius of the site Company 1 (Company name, Location [address/county/city], Operation, Number of employees, Year established in the community, Investment amoun [if possible], approximate distance to site)
Company 2 (Company name, Location [address/county/city], Operation, Number of employees, Year established in the community, Investment amoun [if possible], approximate distance to site)
Company 3 (Company name, Location [address/county/city], Operation, Number of employees, Year established in the community, Investment amoun [if possible], approximate distance to site)
Company 4 (Company name, Location [address/county/city], Operation, Number of employees, Year established in the community, Investment amoun [if possible], approximate distance to site)
Company 5 (Company name, Location [address/county/city], Operation, Number of employees, Year established in the community, Investment amoun [if possible], approximate distance to site)
Provide any significant recent (last 5 years) pharmaceutical industrial downsizings within a 25-mile radius of the site Company 1 (Company name, Location [address/county/city], Operation, Number of employees, date of downsizing in the community, approximate distance to site) Company 2 (Company name, Location [address/county/city], Operation, Number of employees, date of downsizing in the community, approximate distance to site) Company 3 (Company name, Location [address/county/city], Operation, Number of employees, date of downsizing in the community, approximate distance to site) Company 4 (Company name, Location [address/county/city], Operation, Number of employees, date of downsizing in the community, approximate distance to site) Company 5 (Company name, Location [address/county/city], Operation, Number of employees, date of downsizing in the community, approximate distance to site) Easements
Gas (Please provide information on existing easements related to the following elements that would impact construction or the expansion potential of the existing building/site:) [Yes or No, if yes, please explain]
Electric (Please provide information on existing easements related to the following elements that would impact construction or the expansion potential of the existing building/site:) [Yes or No, if yes, please explain] Telecom (Please provide information on existing easements related to the following elements that would impact construction or the expansion potential of the existing building/site:) [Yes or No, if yes, please explain] Municipal Water (Please provide information on existing easements related to the following elements that would impact construction or the expansion potential of the existing building/site:) [Yes or No, if yes, please explain] Sewer (Please provide information on existing easements related to the following elements that would impact construction or the expansion potential of the existing building/site:) [Yes or No, if yes, please explain] Rail (Please provide information on existing easements related to the following elements that would impact construction or the expansion potential of the existing building/site:) [Yes or No, if yes, please explain]
Other (explain) (Please provide information on existing easements related to the following elements that would impact construction or the expansion potential of the existing building/site:) [Yes or No, if yes, please explain] If yes to any, can they be moved or built over? [Yes or No, if yes, please explain] Do any other entitlement or easement issues exist on the site? [Yes or No, if yes, please explain] If so, can they be mitigated? [Yes or No, if yes, please explain] Electric Service
Electric Service Provider:

Electric capacity (MW) available on the current/proposed transmission line? Electric: If additional capacity is needed to meet minimum requirements, what is the estimated timing and cost to provide? Electric: Type of power line from which the site is fed: (Transmission or Distribution) What is the distance of the line serving the site?
What is the voltage of the line serving the site?
How far is the site from the nearest overhead power line? 79 How far is the site from a high voltage transmission line (i.e., 115 kV or 135 kV)? Is dual feed electric service available? Note: "dual feed" is defined as (1) two different lines extended from two different substations that are fed from two different high-voltage supply lines or (2) service from a single substation containing a switch between two transformers served from two different high-voltage supply lines:
(yes or no)
If no, can dual feed service be extended?: (yes or no, if yes, estimate timing, cost and high level plan to serve) Is onsite electric service substation an option? (yes or no) Substation #1 Distance:

Substation #2 Distance:

Substation #3 Distance:

Estimated average electricity rate per kWh (not incentivized):

Does the estimated rate include the electricity demand cost? (yes or no If no, what is the demand cost? Have there been any reported outages on nearby substations in the past ten years? (yes or no, If yes, please explain.) Electric: Additional Info
Fiber Optic Infrastructure (Telecommunications)
Telecom Provider #1 Name:

Telecom Provider #1 Capacity:

Telecom Provider #2 Name:

Telecom Provider #2 Capacity:

Fiber Optic: Distance in miles (rounded to the nearest tenth of a mile) from site to nearest PoP (Point-of-Presence) Wastewater Service
Wastewater: Service Provider
Wastewater: Distance from site to wastewater line serving site Wastewater: Distance from site to nearest wastewater treatment facility Wastewater: Current Capacity (GPD) available through line capable of serving site Wastewater: If additional capacity is needed to meet minimum requirements, what is the estimated timing and cost to provide? Average wastewater rate per gallon:

BOD (ppd) (What are the wastewater thresholds for all relevant pollutants?) COD (ppd) (What are the wastewater thresholds for all relevant pollutants?) TDS (ppd) (What are the wastewater thresholds for all relevant pollutants?) TSS (ppd) (What are the wastewater thresholds for all relevant pollutants?) pH Level (pH) (What are the wastewater thresholds for all relevant pollutants?) Temperature (°F) (What are the wastewater thresholds for all relevant pollutants?) FOG (ppd) (What are the wastewater thresholds for all relevant pollutants?) Other Energy Sources
Please describe the availability of any additional renewable energy sources (aside from those already covered) that are proximate to the site (e.g., wind, solar):

Taxes
Real Property: Taxes Paid Last Year
Real Property: % of Market Value Assessed
Real Property: Millage Rate per $1,000 Assessed
Is manufacturing M&E subject to Personal Property Tax?
Is building M&E subject to Personal Property Tax?
Personal Property (M&E): % of Market Value Assessed
Personal Property (M&E): Millage Rate per $1,000 Assessed Personal Property (M&E) Depreciation Schedule % (Amount of M&E value (% of purchase price) taxed in year N (e.g., 90%)) Is inventory subject to Personal Property Tax?
Personal Property (inventory): % of Mkt Value Assessed
Personal Property (inventory): Tax Rate per $1,000 Assessed State Sales Tax
Local Sales Tax
Is there a sales tax on utilities used in the manufacturing process? (yes or no, if yes please identify) Sales Tax % on Electricity
Sales Tax % on Natural Gas
Sales Tax % on Water
Sales Tax % on Wastewater
What other taxes would apply to a manufacturing operation? Indicate type of tax and applicable rate:

Distinguishing Features: Property & Community
Distinguishing Features: Property
Distinguishing Features: Community
Supplemental Documentation
Photo #1 (JPG, TIF, BMP formats only, with file size < 5MB) Photo #2 (JPG, TIF, BMP formats only, with file size < 5MB) Photo #3 (JPG, TIF, BMP formats only, with file size < 5MB) Utility Map (File size must be < 5MB)
Site Plan (w/ topo map) (File size must be < 5MB)
Area / Location Maps (File size must be < 5MB)
Zoning Ordinance (File size must be < 5MB)
Environmental Reports (e.g., Phase I) (File size must be < 5MB) 80 Flood Plain Map (File size must be < 5MB)
Wetlands Delineation (File size must be < 5MB)
Miscellaneous Information #1 (File size must be < 1MB)
Miscellaneous Information #2 (File size must be < 1MB)
Miscellaneous Information #3 (File size must be < 1MB)
Miscellaneous Information #4 (File size must be < 1MB)
81 FY 22-23

ORGANIZATIONAL UPDATE
82 24/7 Commercial Real
Estate Database
Primary Marketing Entity
for Tulare County
Recruit Targeted
Industries

ABOUT US KEY ACTIVITIES
Non-Profit 501(c)4
Led by a 26 member Board
of Directors
Our Vision: To be the
premier location in California
to live, work, learn, and play.

OUR GOALSOUR GOALS
Maximize
opportunities for
economic growth and
job creation
Create a globally
competitive
environment for
businesses
Maintain a high performance,
nationally acclaimed
economic
development organization.
83 Manufacturing BioTechnology Food & Beverage

STRATEGIC PLANNING

SESSION

REGIONAL ASSET

INVENTORY TOUR

TULARE COUNTY

RELOCATION GUIDE

TOP INDUSTRIESTOP INDUSTRIES

YTD ACTIVITY UPDATES
32 Project Leads
17 Site SelectorMissions
7 Data Assists
69%
EDC Exclusive
84 85

LEADS BY SOURCE
86 WELCOME HOME TULARE COUNTY
SCAN ME!
87 EVENTS, MISSIONS, & TRADE SHOWSWORLD AG EXPO 2023 WESTPACK 2023

SITE SELECTOR, BROKER, & LEGISLATIVE MISSIONS
88 Dr. Christopher Thornberg
Beacon Economics, LLC.
2023 SEQUOIA REGIONAL

ECONOMIC SUMMIT

THANK YOU TO OUR SPONSORS
89 PRELIMINARY FY 23-24 WORKPLAN HIGHLIGHTS*
*Pending approval by TCEDC Board of Directors at a future date, and avaliable funding Expand Real Estate & Demographic Database:

GIS Webtech, 3D Spec Building Technology and Demographics, Zoning and Utility layers
Expand City/Community Pages
Highlight Assets and Retail/Commercial Opportunities
Restoring and Emphasizing Core Economic Development Activities:

Economic Impact Reporting Software
Energizing & Increasing Private Sector and Regional Legislator Support and Involvement Direct Memberships, Sponsorships, & Committee Service
Generate New Leads
Attending Industry-driven Expos and Tradeshows, Site Selector Missions, Broker Missions
Marketing Consulting Services (*based on funding)
Regional Marketing Campaign
90 THANK YOU FOR YOUR SUPPORT!

www.tularecountyedc.comwww.linkedin.com/tcedc(559) 625-3100 Airica de Oliveira
President & CEO
[email protected]
Samuel Diaz
Vice President & COO
[email protected]
91 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0141 Agenda Date: 4/17/2023 Agenda #: 1.

Agenda Item Wording:

Visalia National Junior Basketball 8th Grade All Stars - National Tournament Champions Visalia City Council Printed on 4/14/2023Page 1 of 1
powered by Legistar™
92 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0068 Agenda Date: 4/17/2023 Agenda #: 2.

Agenda Item Wording:

Proclamation by the Visalia City Council proclaiming April 19, 2023 as Arbor Day in the City of Visalia, urging all citizens to support efforts to plant trees and protect our woodlands and forests.

Visalia City Council Printed on 4/14/2023Page 1 of 1
powered by Legistar™
93 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0066 Agenda Date: 4/17/2023 Agenda #: 1.

Agenda Item Wording:

Authorization to read ordinances by title only.

Visalia City Council Printed on 4/14/2023Page 1 of 1
powered by Legistar™
94 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 22-0452 Agenda Date: 4/17/2023 Agenda #: 2.

Agenda Item Wording:

Request authorization to file a Notice of Completion for the Fire Station 55 Roof Repair Project.

Project No. 1420-72000/CP0250-999.

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

Jaklin H Rowley, Assistant Engineer, [email protected], (559) 713-4369 Frank Senteno, City Engineer, [email protected], (559) 713-4331 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:

Authorize staff to file a Notice of Completion for the Fire Station 55 Roof Repair Project.

Background Discussion:

Fire Station 55 was constructed in 2007 and had a 15-year-old built-up bituminous flat roof on two (2) of its buildings at the station. Both roofs had experienced significant damage, which could be seen through the blistering on the roof likely caused by saturated insulation below the modified membrane.

The blistering is caused by moisture getting in under the roofing and expanding like a balloon when the roof gets hot in the summer. This damage caused the roof to leak into the building during rainstorms. This caused minimal damage to the interior but if allowed to continue could have caused significant damage to the buildings. The roof had a material/manufacturer warranty for 20 years however it was not the roofing material that had failed it was the installation of the roofing that had failed. The construction/installation had a typical two-year warranty. The blistering on the roof began approximately four years ago and had become increasingly worse despite staff’sefforts to provide maintenance to the areas of concern.

Last year’s inspection indicated that both roofs needed to be removed and repaired. Through a reductive change order and per the contractor’srecommendation, a polyurethane roofing system was applied to both roofs. This is a new roof, but it did not require the removal of the old roof which saved time and money. The project is now complete and withstood the heavy rains we recently experienced during the February and March 2023 Storm Events with no leaking. The roof has a 20-year material and labor warranty and a 2-year contractor warranty.

Change Orders
The Fire Station 55 Roof Repair Project had two change orders. The first came before the Council with the award of the bid in the reduction amount of $90,238.00. The second was a zero-cost change order that extended the contract until April 21st. The contract was extended due to weather conditions, the polymer in the roofing system required a 70-degree temperature to fully cure. The polymer is applied in layers and the last layers were postponed until warmer weather became Visalia City Council Printed on 4/14/2023Page 1 of 3
powered by Legistar™
95 File #: 22-0452 Agenda Date: 4/17/2023 Agenda #: 2.
available. The project was completed in late March 2023 and within the contract specified time.

Change Order Date Description Change to Contract
10-13-2022 Reduction in Contract Amount -$90,238.00
12-20-2022 Add additional contract days Extend Contract Finish to 4/21/2023
Fiscal Impact:

This project is funded by the Measure N Building Maintenance Fund 142, (No. 1420-72000/CP0250).

Budget Summary: Fire Station 55 Roof Repair Project, CP0250 Project Costs
Construction Cost $288,985.00
Change Order No. one (1) -$90,238.00
Construction Inspection (1%) $2,889.85
Construction Management (5%) $14,449.25
Total Project Costs $216,068.10
Prior Council Action:

On October 17, 2022 Council authorized the City Manager to award the construction contract for RFB 21-22-45, Fire station 55 Roof Repair Project, to Brazos Urethane Inc, in the amount of $288,985.00 and approval of Change Order No. one (1) for miscellaneous scope changes in the reduction amount of $90,238.00.

Other:

None
Alternatives:

None recommended
Recommended Motion (and Alternative Motions if expected):

I move to authorize staff to file a Notice of Completion for the Fire Station 55 Roof Repair Project.

Environmental Assessment Status:

N/A
CEQA Review:

N/A
Attachments:

None
Visalia City Council Printed on 4/14/2023Page 2 of 3
powered by Legistar™
96 File #: 22-0452 Agenda Date: 4/17/2023 Agenda #: 2.

Visalia City Council Printed on 4/14/2023Page 3 of 3
powered by Legistar™
97 Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0088 Agenda Date: 4/17/2023 Agenda #: 3.

Agenda Item Wording:

Authorize the City Manager to award a sole source contract to AMCS Group, Inc. in the amount not to exceed $505,835 for the software integration, hardware upgrade and maintenance of twenty (20) on-board computers in Solid Waste front-load commercial trucks, including a 10-year maintenance contract comprised of an initial five (5) year term and five (5) additional 1-year renewal options. Also, authorize the appropriation of $61,936 for FY 22/23, and $54,165 for FY 23/24 from the Solid Waste Enterprise Fund (441).

Deadline for Action: 4/3/2023
Submitting Department: Public Works
Contact Name and Phone Number: Jason Serpa, Public Works Manager, [email protected], 713-4533 Nick Bartsch, Public Works Director, [email protected], 713-4052
Department Recommendation:

Staff recommends that City Council authorize the City Manager to award a 5-year sole source contract with an additional five 1-year renewals to AMCS Group, Inc. in the amount not to exceed $505,835 for the hardware upgrade and maintenance of twenty (20) on-board computers in Solid Waste front-load commercial trucks, along with the corresponding software integration, and appropriate $61,936 for FY 22/23 and $54,165 for FY 23/24 from the Solid Waste Enterprise Fund (441).

Background Discussion:

On September 8, 2015, City Council directed staff to pursue an in-house utility billing software and associated technology. At the same time, staff was directed to develop a plan for the implementation of a 3-can residential waste system. In October of 2016, staff requested proposals from qualified vendors for the purchase of a utility billing software that included technology upgrades for solid waste operations. The Request for Proposal was specifically written to provide a new utility account billing system and a full solid waste operations system that included on-board computers, cameras, and radio frequency identification (RFID) tags for the City’s various cans and bins.

On November 20, 2017, City Council authorized the City Manager to enter into contract with AMCS Group, Inc. for the purchase and implementation of a new utility billing system and a solid waste operations system. On January 1, 2019, the utility software became live, and all utility business operations became an in-house enterprise for the City of Visalia. At the same time, the technology and on-board computers were installed in the existing solid waste trucks. In the summer of 2019, the 3-can conversion for all residential services was completed.

Even though the hardware on the trucks was operational, unfortunately, the integration with the utility software was not completed at that time. Apart from realizing and implementing route efficiencies in Visalia City Council Printed on 4/14/2023Page 1 of 5
powered by Legistar™
98 File #: 23-0088 Agenda Date: 4/17/2023 Agenda #: 3.
software was not completed at that time. Apart from realizing and implementing route efficiencies in the operations of the Solid Waste Division, the added benefit of the truck equipment is the ability to integrate operations with utility billing staff. This will allow for new accounts or services to be added and sent to the driver’scomputer in the truck, thus automatically updating the route. It also allows utility staff and supervisors access to see what specific cans/bins have been serviced and the location of the truck in real-time. The original project, which budgeted funds to develop the software integration, was not completed in part due to the impacts of COVID-19 in early 2020. At that time, the project came to a halt and the remaining project funds were ultimately released back to the fund.

To be fully effective, the project needs to be completed. This includes the software integration along with upgrades to some of the hardware in the trucks. Replacement refuse vehicles have been purchased since the initial installation, and therefore some of the hardware will need to be upgraded and transferred to the new trucks. Finance Utility Billing staff has been working diligently to compile and import the required data into the AMCS Utility Software, which will then be integrated into the hardware in each truck. Solid Waste staff has have been working to ensure that routes are complete with RFID tags so the system is functional upon the completion of the remaining hardware installation and upgrades.

Past installation:

The installation that occurred in FY18/19 included all trucks in the Solid Waste fleet. This included residential and commercial trucks. The authorization currently being requested is for the re- installation and upgrade of the commercial trucks only. The commercial division currently has a total of 19 trucks out of the fleet of 59. In addition to the current 19 trucks, the cost of one additional truck installation and ongoing operations has been budgeted to cover the need for fleet expansion in the coming years. Staff will be revisiting the installation and upgrades to the Residential Division trucks after the successful upgrade and implementation of the Commercial Division fleet.

It is important to note that the current re-installation and upgrades include hardware that would have needed to be presently replaced in any event. For example, the previous devices installed in FY18/19 utilized 3G capability, which is no longer supported by wireless carriers.

AMCS Group, Inc has proposed a plan for necessary upgrades that considers the viable components from the previous install. These components include the RFID antenna, tilt sensor, the control unit for the tilt sensor, and the in-cab screen for driver operation. The components that are being replaced are the on-board computer, peripheral kit, and other items as needed such as frayed wiring or new connectors.

Fiscal Impact:

AMCS Group, Inc. has developed an agreement that the City can utilize to complete the upgrade and re-installation of the truck equipment, while also providing ongoing service. The City is able to take advantage of a Hardware as a Service Subscription (HaaS) model that lessens the initial cost of the equipment and includes installation and ongoing maintenance warranties. The proposed pricing considers the delays in implementation and integration from the past installation.

The Hardware as a Service (HaaS) model has many advantages, both in the initial cost and future obligations for installation and repairs. If the City were to subscribe to the HaaS model, AMCS assumes all future on-going maintenance costs.

Visalia City Council Printed on 4/14/2023Page 2 of 5
powered by Legistar™
99 File #: 23-0088 Agenda Date: 4/17/2023 Agenda #: 3.

Figure A illustrates the advantages of the HaaS model by comparing the year to year costs over the initial 5-year contract term. The initital term includes a one-time cost of $61,936 for equipment and software integration, and $$54,165 for the following year when accounting for possible truck installations. These initial amounts will be appropriated with the approval of this authorization, and future years will be appropriated through the normal budgeting process.

FIGURE A (HaaS) 2023 2024 2025 2026 2027
Equipment (including sales tax) $25,333 $32,000 $32,000 $32,000 $32,000 Sales Tax $2,153 $2,720 $2,720 $2,720 $2,720
Software Integration with Utilities $24,970 $0 $0 $0 $0 Software Utility Services Support $4,000 $0 $0 $0 $0
Installation $0 $0 $0 $0 $0
Future Installation Truck Swaps* $0 $13,965 $9,975 $9,975 $11,970 Contingency and travel expenses $5,480 $5,480 $5,480 $5,480 $5,480 Totals $61,936 $54,165 $50,175 $50,175 $52,170
*Estimate based on projected future truck purchase installations.

Beginning in 2028 (contract term 6), an annual CPI increase is included per AMCS’s proposal.

Figure B illustrates the final 5 years of contract, assuming the maximum 3% CPI increase allowed within the contract:

FIGURE B (HaaS) 2028 2029 2030 2031 2032
Equipment (including sales tax) $32,960 $33,949 $34,967 $36,016 $37,097 Sales Tax $2,802 $2,886 $2,972 $3,061 $3,153
Software Integration with Utilities $0 $0 $0 $0 $0
Software Utility Services Support $0 $0 $0 $0 $0
Installation $0 $0 $0 $0 $0
Future Installation Truck Swaps* $0 $0 $0 $9,975 $9,975 Contingency and travel expenses $5,480 $5,480 $5,480 $5,480 $5,481 Totals $41,242 $42,315 $43,419 $54,532 $55,706
*Estimate based on projected future truck purchase installations.

With the HaaS model, the City would benefit from getting upgrades on hardware and software at no additional charge. In addition, all initial installation of equipment is included.

Figure C shows the total 10-year cost for the HaaS subscription method:

Figure C Hardware as a
Service (HaaS)
2023 $61,936
2024 $54,165
2025 $50,175
2026 $50,175
2027 $52,170
2028 $41,242
2029 $42,315
2030 $43,419
2031 $54,532
2032 $55,706
Total $505,835
Visalia City Council Printed on 4/14/2023Page 3 of 5
powered by Legistar™
100
File #: 23-0088 Agenda Date: 4/17/2023 Agenda #: 3.

Figure C Hardware as a
Service (HaaS)
2023 $61,936
2024 $54,165
2025 $50,175
2026 $50,175
2027 $52,170
2028 $41,242
2029 $42,315
2030 $43,419
2031 $54,532
2032 $55,706
Total $505,835
City staff also reviewed an alternative purchase option presented by AMCS that included all equipment for a one-time purchase price up front but did not provide ongoing service or warranties.

The advantages to the HaaS subscription model far outweighed this option in the short and long term due to no cost equipment upgrades and warranty. Figure D below shows the yearly side by side comparison of purchasing the components versus the HaaS agreement:

Figure D
Hardware as a
Service (HaaS)
Purchase
Upgrade
Equipment
2023 $61,936 $209,070
2024 $54,165 $28,965
2025 $50,175 $29,975
2026 $50,175 $29,975
2027 $52,170 $31,970
2028 $41,242 $20,000
2029 $42,315 $180,100
2030 $43,419 $20,000
2031 $54,532 $29,975
2032 $55,706 $29,975
Total $505,835 $610,005
Prior Council Action: September 8, 2015:

Council directed staff to pursue an in-house utility billing software and associated technology; and bring back recommendations for a conversion to a 3-cart system.

November 20, 2017: City Council authorized the City
Manager to enter into contract with AMCS Group, Inc. for the purchase and implementation of a new Utility Billing System and a Solid Waste Operations System.

Other: N/A
Visalia City Council Printed on 4/14/2023Page 4 of 5
powered by Legistar™
101
File #: 23-0088 Agenda Date: 4/17/2023 Agenda #: 3.

Alternatives: Not approve the authorization to enter contract with AMCS Group, Inc. and direct staff to issue a new Request for Proposals for other vendors to participate. Not approve the authorization to enter contract with AMCS Group, Inc. and continue to operate Solid Waste routes with manual routines and procedures. (This alternative is not recommended by staff as truck upgrades are needed to realize efficiencies within the Commercial Solid Waste operation.) Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to enter into a 5-year sole source contract with an additional five 1-year renewals to AMCS Group Inc, utilizing the Hardware as a Service (HaaS) model for the upgrade of twenty (20) on-board computers in Solid Waste front-load commercial trucks and corresponding software integration in the amount not to exceed $505,835 and appropriate $61,936 for FY 22/23 and $54,165 for FY 23/24 from the Solid Waste Enterprise Fund (441).

Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: AMCS HaaS Proposal
AMCS Integration Proposal
AMCS Support Service Proposal
Sole Source Memo
AMCS HaaS Terms and Conditions
Visalia City Council Printed on 4/14/2023Page 5 of 5
powered by Legistar™
102
Confidential Information
Property of AMCS
Distribution Restricted to Authorized Persons

ADVANCED MANUFACTURING CONTROL SYSTEMS LIMITED (“AMCS”) 179 Lincoln St., Boston MA 02111

City of Visalia AMCS Vehicle Technology (HaaS)

City of Visalia (“Customer”)
707 W. Acequia Ave.

Visalia, CA 93278

Prepared by:

Eric Curatola
[email protected]
Proposal Ref: 03202023-03EC

Prepared for:
103

__________________________________________________________

_______________________________________________________________________________________

©AMCS Group 2020 www.amcsgroup.com Page 2 of 9
Confidential and Proprietary Information (Rev:)
Table of Contents

1. INTRODUCTION ................................................................................................................................................................. 4

1.1. CRITICAL SUCCESS FACTORS .................................................................................................................................................... 4

1.2. WHY AMCS? ...................................................................................................................................................................... 4

2. SOLUTION OVERVIEW ....................................................................................................................................................... 5

2.1. AMCS VEHICLE TECHNOLOGY ................................................................................................................................................. 5

2.1.1 HARDWARE AS A SERVICE (HAAS) ............................................................................................................................................ 5

2.1.2 SUPPORT ............................................................................................................................................................................. 6

2.2. AMCS PROFESSIONAL SERVICES & TRAINING ............................................................................................................................ 6

3. PRICING ............................................................................................................................................................................. 7

3.1 .................................................................................................................................................................................................. 7

3.2 .................................................................................................................................................................................................. 8

4. ACCEPTANCE ..................................................................................................................................................................... 9

104

__________________________________________________________

_______________________________________________________________________________________

©AMCS Group 2020 www.amcsgroup.com Page 3 of 9
Confidential and Proprietary Information (Rev:)
20th March 2023

Jason Serpa
Public Works Manager
707 W. Acequia
Visalia, CA 93278

Proposal Reference: 03202023-03EC

Dear Jason,

On behalf of AMCS, thank you for your continued consideration and use of our Solutions as your operational platform.

Our company is excited about the upgrade to your Solid Waste systems and looks forward to helping support your Waste Diversion initiatives with an upgrade to your Fleet Hardware. We can address your immediate fleet needs by supplying replacements components. Looking ahead, we can offer a tailored service to the city, Hardware as a Service (HaaS), that provides stability and improved efficiencies for your Waste Stream fleet.

We believe that our proposed solution will deliver the following benefits:

• Increase Vehicle Utilization: new hardware and routine preventative maintenance will reduce vehicle down-time from trucks not being able to operate because of broken components. • Lower Overall Costs: eliminate purchase of replacement components as legacy hardware systems continue to deteriorate.
• Improve Productivity: reduce the burden on maintenance staff on repairing or replacing fleet hardware and maintaining spare parts inventory or issuing purchase orders. • Predictable Costs: subscription model with fixed cost rate, warrantying all components for entire year.

Please see the proposal below for the purchase of a HaaS, a service providing new components with warranty for the term length.

Best Regards,
Eric Curatola
Eric Curatola
AMCS Group
Enterprise Sales Manager
714-401-4061: Mobile
[email protected]

105

__________________________________________________________

_______________________________________________________________________________________

©AMCS Group 2020 www.amcsgroup.com Page 4 of 9
Confidential and Proprietary Information (Rev:)

1. Introduction
City of Visalia currently operates and maintains a fleet of vehicles for municipal and commercial waste collections.

These vehicles are equipped with on-board equipment (Vehicle Technology) to streamline collections processes and help increase diversion rates. Equipment on these vehicles was installed five years ago and is no longer under warranty. Due to poor utilization and the rising costs to maintain existing Vehicle Technology systems, AMCS has recommended upgrading with some new components. New equipment will help reduce down-time and associated with procuring and installing replacements.

1.1. Critical Success Factors
AMCS will be partnering with Visalia to help it reach its diversion goals. Key success factors related to Fleet management include:

• Financial: cost management from improved fleet utilization operational efficiency • Product: improved user experience and functionality to improve resource utilization • Sustainability: providing an efficient scalable model for fleet maintenance as Visalia purchases additional vehicles and expands to the residential collection fleet • Support: regularly scheduled support to drive adoption and promote best practices

1.2. Why AMCS?
In choosing to work with AMCS directly and remove the intermediary reseller parties, the City of Visalia is selecting a financially stable, low-risk provider who will safeguard and future-proof your product investment. We believe that we are uniquely positioned to help your organization achieve the desired business outcomes for the following reasons:

Leading Global Solution Provider in the Waste and Recycling Space • We are an independent dedicated global provider serving the Waste and Recycling industry with significant domain expertise across commercial, recycling, municipal, scrap-metal, specialist waste and advanced routing.
• We are a global company with 1200 + staff in 20 + offices, serving 3,500 customers in 29 countries with over 500,000 vehicles under management.
• We are financially stable with 25% year-on-year growth backed by Tier 1 private equity investors. • We have dedicated regional delivery teams based in NA, EMEA and ANZ backed by operational centers of excellence (Product Development, DevOps and Integrations).

End to End Solution
• We offer our customers a comprehensive, end-to-end, integrated, SaaS solution comprising of Enterprise Management, Intelligent Optimization, Vehicle Technology, Mobile Workforce, Digital Engagement and Analytics on one single platform.
• Our platform is architected for flexible and modular deployment. • We enable rapid adaptability to ever-changing business needs. • We can integrate with third-party solutions seamlessly. • We offer our customers a single view of their business - customer, operations and financials.

106

__________________________________________________________

_______________________________________________________________________________________

©AMCS Group 2020 www.amcsgroup.com Page 5 of 9
Confidential and Proprietary Information (Rev:)

2. Solution Overview
This section details at a high level the proposed solution for City of Visalia.

The solution consists of the following elements.
• AMCS Vehicle Technology
• AMCS Professional Services

2.1. AMCS Vehicle Technology
AMCS Vehicle Technology (Vtech) is a key component of a digital workflow that improves operational efficiency.

Vehicle Technology is integrated with Visalia’s AMCS Billing System (Elemos) and provides an overview of collection data in real-time, enabling you to increase responsiveness and correct issues. Vtech in conjunction with our Platform and your existing cart management/RFID deployment allows you to easily monitor Recycling Participation and focus additional efforts on education and awareness for lower participation accounts.

Some Features for the AMCS Vtech Solution are:
• Expandable and modular design allows for future enhancements to customers’ solutions • High-quality components (e.g. connectors are IP69K-rated for maximum protection) which are suitable for the harsh working environment
• Available for all makes and models of bin lifts on the market • Connection available for in-cab tablet devices opens a world of mobile working making use of intelligent data The Solution provides the following key benefits:
• Reduced revenue leakage by addressing the problem of revenue lost through fraud/unauthorized lifts • Proof of service – more effective dealing of customer queries and resolution of issues, including real-time performance management and a virtual audit trail
• Ability to offer varied and effective pricing plans targeted at your customer base; generate data to inform Community Policy setting

2.1.1 Hardware as a Service (HaaS)
A key benefit to our HaaS Solutions is more predictable and potentially lower cost of ownership through new equipment under warranty. Additionally, AMCS believes that more scheduled and frequent preventative maintenance, along with time allotted to train and support Visalia’s in-house fleet maintenance team, will result in improved utilization and less down-time spent repairing or replacing legacy components.

AMCS will be pro-actively servicing our Vtech Solution and maintaining Vtech Hardware on a regular basis in a Hardware as a Service (HaaS) Model. Hardware for the units Visalia upgrades/purchases under a HaaS Model are under warranty for the life of the contract and AMCS will replace parts at no cost to Visalia should parts fail.

The proposed HaaS Solution includes:
• Warranty – replace all defective parts, including full unit overhauls as needed o This warranty applies to all pre-existing components as well as the new hardware AMCS is installing o AMCS covers shipping fees for defective components
• Up to 10, eight hour days for a total of 80 man hours per calendar year of on-site Fleet Engineering/Technical Support to:
o Replacement Equipment Commissioning
o Perform Preventative Maintenance Inspection and Calibrate Equipment o Monitoring, Recording, and Reporting of Performance Data 107

__________________________________________________________

_______________________________________________________________________________________

©AMCS Group 2020 www.amcsgroup.com Page 6 of 9
Confidential and Proprietary Information (Rev:)
o Assess issues technical issues not being resolved by Fleet Staff e.g. drivers in field o Document Work Performed and Identify Potential Future Issues o Train Visalia Fleet Team on best practices for Vtech maintenance and operation o Assist with Repair/Installation/Swaps of Fleet Equipment o Recommend Legacy replacement items needed and help create maintenance schedules for these items

Onsite support time is intended to be delivered by one AMCS Technician, however, AMCS will coordinate with City of Visalia ahead of time to agree on site visits agenda and resources needed. Total non-billable or included on-site time is 10 days per year.

2.1.2 Support
Visalia will also have unlimited phone and email access to AMCS Support for both legacy and HaaS Vtech Components. As defined by Visalia, users with appropriate privileges will have the ability to access AMCS NetSuite Case Management System. Case Management users can create cases, monitor response times and resolutions, and audit all system interactions.

AMCS Customer Success Team and/or AMCS Fleet Technicians can also assist Visalia in creating cases. Cases will initiate a support request, which will be replied to within 8 hours during normal business operation (Mon.-Fri.) to remotely diagnose issues or assist with vehicle repair.

2.2. AMCS Professional Services & Training
AMCS has dedicated delivery teams to provide effective business consultancy, best-practice implementation leadership, project management, training and support. The North American Professional Services team has an excess of 300 years of industry experience. AMCS offers a dedicated service for our customers in all relevant markets.

Our Professional Services teams are dedicated to working closely with customers to understand the business needs and expectations as well as ensuring the customer leverages maximum value from the AMCS Platform. AMCS follows a proven project delivery structure and proven methodology to ensure successful execution of every project for our customers.

Project Workstreams with Deliverables
• Vehicle hardware installation and configuration
o Delivery of new vehicle hardware per contract
o Hardware installed on vehicles
o Hardware configured and tested with customer sign off

108

__________________________________________________________

_______________________________________________________________________________________

©AMCS Group 2020 www.amcsgroup.com Page 7 of 9
Confidential and Proprietary Information (Rev:)

3. Pricing
The following section outlines AMCS’ commercial approach for the Hardware as a Service (HaaS) licensing.

3.1 HaaS Model and Fees

If this option is purchased by you the Hardware as a Service (HaaS) subscription is available at the pricing below.

No Item Quantity Type Total (USD)
1 FEL Vehicle Upgrade Up to 20 Systems HaaS $32,000
2 Hardware Installation & Training Up to 20 Systems Services $0 Estimated Sales Tax (8.5%) $2,720
Total with Tax $34,720

HaaS FEL Vehicle Upgrade – New Component Prices (included with HaaS Subscription) for reference only No Item (each a “Component”) Type List Price per Unit (USD) 1 Replacement Wiring (VDH-OBC, VDH to Tilt Sensor, VDH to Antenna) Part 2,200
2 On Board Computer (OBC) inc SSD drive, GSM & GPS Antennas Part 5,750 3 VDH for OBC Part 2,500
4 Ancillary Items (Nuts, Bolts, Cables ties etc) Part 700 5 Camera of exceptions Part 575

Notes:

1. HaaS pricing as set out above is available if the HaaS option is accepted on or before 04/30/2023.

2. HaaS Subscription includes brand new parts (five separate line items at quantity of 20 for each) listed in HaaS FEL Vehicle Upgrade table.

3. HaaS subscription includes installation & training fees for initial purchase.

4. During the Contract Term (initial term or subsequent terms), additional HaaS Subscription(s) for FEL Vehicles can be added at the current subscription per unit rate. Additional Subscriptions will be invoiced at the date of purchase Net 30 and pro-rated to the renewal period. a. Visalia can purchase additional FEL Vehicle Upgrades under a HaaS subscription for $1600/year per vehicle during the initial five-year term.

5. HaaS subscription provides a warranty on all new components provided as well as pre-existing components, regardless of their condition.

6. For HaaS warranty:
a. Normal “wear and tear” and defective parts are warrantied. b. These warrantied parts must be returned to AMCS within 14 days of discovery of defect c. Shipping fees for all warrantied parts will be covered by AMCS d. Items broken due to accident or non-standard “wear and tear” are not covered under warranty. 109

__________________________________________________________

_______________________________________________________________________________________

©AMCS Group 2020 www.amcsgroup.com Page 8 of 9
Confidential and Proprietary Information (Rev:)

7. Actual travel expenses will be separately.
a. Travel is estimated to be one week per year at an approximate cost of up to $3k/per year. b. All travel by AMCS is subject to written approval by City of Visalia.

Year 1 Annual Subscription Payment Overview (in USD $)

1. On the Effective Date 50% of Year 1 subscription rate of $32,000, equating to $16,000 shall become due.

2. In the 6th month after the Effective Date, the remaining 50% of the Year 1 subscription fee of $32,000 will become due. This will be pro-rated to the anniversary date (seven months remaining), for a payment of $9,333.

3. Total subscription fees to be paid in Year 1 will be $25,333, plus sales tax.

4. On the first anniversary of the Effective Date (Year 2, 2023), the annual subscription amount of $32,000 plus tax will be billed and due annually in advance.

3.2 General Terms
The following terms apply to this proposal:

1. This Proposal is valid until April 30th, 2023, after which it shall be deemed rescinded.

2. The Initial Term shall be five (5) years, with five (5) subsequent optional 1- year renewals.

3. Any subsequent terms will be invoiced annually at the current subscription rate plus annual adjustment capped at 3%, per #1. in Section 4 under Acceptance.

4. All amounts will be invoiced in USD.

5. Subscription Fees will be invoiced from the “Effective Date” of this Agreement and annually thereafter on the anniversary of the Effective Date.

6. Payment terms, net 30 days from date of invoice.

Month Subscription Payment
1 March $16,000 $16,000
6 August $16,000 $9,333
12-month Totals $32,000 $25,333
110

__________________________________________________________

_______________________________________________________________________________________

©AMCS Group 2020 www.amcsgroup.com Page 9 of 9
Confidential and Proprietary Information (Rev:)

4. Acceptance
Should you choose the AMCS solution for your business, and accept the terms of this proposal, please take the following steps to initiate your order and schedule your project:

Please review this document in its entirety, including the pricing sections and the Terms section. - Hardware: hardware shall be provided on the hardware terms which can be found at:
https://www.amcsgroup.com/media/f2cfvsvj/220511_amcs_haas_usa-canada.pdf

Complete the Effective Date below, which should be the date of Customer signature.

Sign this proposal in the signature block below and print the signatory’s name underneath.

Modification to the Agreement. Solely in relation to this Proposal the Parties agree to modify AMCS’ General Terms of Service as set out below. For the avoidance of doubt, if there is any conflict between the terms of AMCS’ General Terms of Service and the terms of this Proposal, the terms of this Proposal shall prevail:

1. The HaaS Subscription Fee is fixed for the initial 5 year term and any subsequent annual adjustment shall be the then applicable consumer price index (CPI) or three percent, whichever is less, in accordance with Section 6.4 of the Hardware Agreement.

ACCEPTED THIS ________ DAY OF ______________, 2023 (“Effective Date”)

Read and agreed:

AMCS GROUP INC. CITY OF VISALIA

By:

111

Page 1 of 2 ends

V4.4 06/08/2015 4847-7359-7190 1

TO: Jason Serpa
COMPANY: City of Visalia
EMAIL: [email protected]

FROM: Eric Curatola, Enterprise Account Executive
DATE: March 9th, 2023

PROPOSAL # 03092023-001EC (CoV Tower Integration)

This Proposal is for the services needed to configure City of Visalia’s Recycling fleet hardware to be integrated with its Waste Billing System (Tower).

This scope includes the following assumptions:
• Lines of business in scope – Front Load commercial collections • Labor is estimated based on information known and experience of similar projects. Project will be billed as time and material with additional labor quoted through change requests as needed when scope or requirements exceed estimates.
• City of Visalia needs to provide AMCS Commercial Customer Information including:
o Serial Number
o RFID Tag #
o Customer Site and Service

Professional Services:

Project Management: 20 hours @ $215/hour $4,330
Implementation/ Configuration: 32 hours @ $215/hour $6,880 Conversion/Data Migration: 24 hours @ $215/hour $5,160
Training:8 hours @ $215/hour $1,720
Testing: 32 hours @ $215/hour $6,880
Professional Services Sub-Total $24,970
Payment Terms:

Professional Services will be invoiced monthly as work is performed, due net 30 days from Invoice Date.

Prepared for: City of Visalia

Page 2 of 2 ends

V4.4 03/06/2015 4847-7359-7190 1

• This Proposal does not grant transfer or convey any rights, title or interest in or to any AMCS product. • On-site labor pricing is based on work being completed during the local hours of 8:00 AM to 5:00 PM. • Work performed or travel required outside of the times specified above, on-site or remotely, as required by customer request or by project deadlines, will be invoiced at 1.5x our regular rates. • Work performed or travel required on weekends or AMCS observed Holidays will be invoiced at 2x our regular rates. • Remote labor pricing is based on work being completed during the local office hours of the assigned AMCS employee. • Travel and lodging expenses will be invoiced at actual cost plus a $35.00 per person, per trip travel administration fee. Meals will be invoiced at the Per Diem rate of $50 per day. Mileage will be invoiced at the rate of $0.85 per mile. Change to, postponement or cancellation of this project after travel plans have been arranged will result in a 100% charge of travel costs and a 50% charge of committed labor.
• Import duties, etc. are the responsibility of the CLIENT. • FOB Origin, Freight Prepaid & Add.

By its signature / acceptance of this Proposal / EA, CLIENT hereby agrees to each, all and every term for provision of services as set forth in the Software License agreement, and including any Supplemental schedules between AMCS and CLIENT, incorporated herein by this reference (“Terms and Conditions of Service”).

TO PLACE AN ORDER: Please sign this Proposal and Return to [email protected]

PROPOSAL #03092023-001EC
Accepted By:

Name
Printed:

P.O. #:

Date:

Bill To:

Ship To
(site
address):

Must provide email address for person(s)
responsible for payment and receipt of invoice.

Please print the email address here:

113

Page 1 of 2 ends

V4.4 06/08/2015 4847-7359-7190 1

TO: Jason Serpa
COMPANY: City of Visalia
EMAIL: [email protected]

FROM: Eric Curatola, Enterprise Account Executive
DATE: March 13th, 2023

PROPOSAL # 03132023-003EC (CoV FL Bin Serialization)

This Proposal is for the services needed to serialize City of Visalia’s existing container inventory to be able to integrate the Recycling fleet hardware with its Waste Billing System (Tower).

This scope includes the following assumptions:
• Container Inventory Type – Front Load commercial collections • Each container needs and a single assigned serial number • Hours estimated are based on a single import

Professional Services:

Tower Support Configuration: 20 hours @ $200/hour $4,000 Professional Services Sub-Total $4,000
Payment Terms:

Professional Services will be invoiced monthly as work is performed, due net 30 days from Invoice Date.

NOTES:
• This Proposal pricing is valid for 30 days from the Proposal date, provided that AMCS may cancel this Proposal anytime by delivering notice thereof to the recipient of this Proposal. This is only an estimate - actual costs may vary. • All amounts are invoiced in US Dollars.
• Sales Taxes are additional and will be charged when applicable. • All terms, conditions, rights, obligations and liabilities relating to or arising from a licensed AMCS business system shall be set forth in the Software License and Services Agreement documents. • Pricing in this proposal reflects enrollment in and payment of an annual license and support contract, in agreement with the terms and conditions of this proposal, The License and Professional Services agreement, and any supplementary schedules. • This Proposal does not grant transfer or convey any rights, title or interest in or to any AMCS product. • On-site labor pricing is based on work being completed during the local hours of 8:00 AM to 5:00 PM. • Work performed or travel required outside of the times specified above, on-site or remotely, as required by customer request or by project deadlines, will be invoiced at 1.5x our regular rates. • Work performed or travel required on weekends or AMCS observed Holidays will be invoiced at 2x our regular rates. • Remote labor pricing is based on work being completed during the local office hours of the assigned AMCS employee. • Travel and lodging expenses will be invoiced at actual cost plus a $35.00 per person, per trip travel administration fee. Meals will be invoiced at the Per Diem rate of $50 per day. Mileage will be invoiced at the rate of $0.85 per mile. Change to, postponement or cancellation of this project after travel plans have been arranged will result in a 100% charge of travel costs and a 50% charge of committed labor.
• Import duties, etc. are the responsibility of the CLIENT. • FOB Origin, Freight Prepaid & Add.

114

Prepared for: City of Visalia

Page 2 of 2 ends

V4.4 03/06/2015 4847-7359-7190 1

TO PLACE AN ORDER: Please sign this Proposal and Return to [email protected]

PROPOSAL #03132023-003EC
Accepted By:

Name
Printed:

P.O. #:

Date:

Bill To:

Ship To
(site
address):

Must provide email address for person(s)
responsible for payment and receipt of invoice.

Please print the email address here:

115
City of Visalia
Memo

To: Nick Bartsch, Public Works Director
From: Jason Serpa, Public Works Manager
Date: March 28, 2023
Re: Sole Source Request for Solid Waste Truck Equipment Request: Staff is requesting a sole source contract with AMCS, Inc. to upgrade the current hardware on Solid Waste trucks.

Justification: AMCS, Inc. is the current software provider for the utility billing software within our Finance department. This software is used by staff to bill customers monthly for utility services, customer service, and operational tasks like work order process and a landfill ticket database. Because some of the older equipment that is currently on some of the trucks was installed by AMCS, staff has recommended that AMCS, Inc. be used to lessen the cost of bringing the older truck back into working order and install new equipment on the newer trucks. The goal is the integration of the billing software and the hardware on the trucks to provide a more seamless customer service experience.

Financial: See agenda item.

Recommendation: Staff recommends the sole source of the Solid Waste truck equipment from AMCS, Inc. to integrate with our Utility Billing software. This will help expedite and streamline integration between the customer service software and the truck equipment.

116

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 1 of 16 These Hardware as a Service terms (“HaaS Terms”) govern Customer’s use of and access to the Services. Customer is deemed to have accepted these HaaS Terms, either by: (a) executing a Proposal or a Work Order that references these HaaS Terms; or, (b) Customer’s use of or accessing any AMCS ’ Hardware and/or Services. Unless otherwise specifically agreed in writing signed by the Parties, the Agreement constitutes the entire agreement between Customer and AMCS with respect to the Services specified in the Proposal and/or Work Order.

AMCS shall supply and Customer shall purchase the Services specified by AMCS in a Proposal and/or a Work Order . AMCS and Customer may each be referred to as a “Party” and together as the “Parties” to these HaaS Terms. 1 Term. The Term of the Services and these HaaS Terms will take effect on the Effective Date and continue during the Initial Term. Except as otherwise varied in a Proposal, the Services and these HaaS Terms will automatically renew for successive Extended Term(s) unless either party gives written notice to the other party not later than ninety (90) days before the expiration of the Initial Term or the relevant Extended Term, to terminate th e Services at the end of the Initial Term or relevant Extended Term, as the case may be, unless th e Services are terminated earlier in accordance with these HaaS Terms.
2 Subscription

2.1 During the Term , and subject to these HaaS Terms , the: (a) Annual Subscription Fees will entitle Customer, solely for Customer’s internal business operations, a non -exclusive, non-transferable right to use, and permit Authorized Users to use, the Services, any Deliverables and the Documentation on and subject to the se HaaS Terms; (b) Professional Services Fees will entitle Customer to receive any Implementation Services and, to purchase additional Professional Services on the terms agreed by the Parties in the Proposal or a Work Order, as applicable subject to the Professional Services terms below.

2.2 If a Proposal or a Work Order expressly states, or if subsequently agreed in writing signed by the Parties, that an Affiliate is authorized to use the Services purchased under the Agreement then all references to Customer in clause 2.1 shall include Affiliate. The grant to Affiliates herein is contingent always upon Customer retaining sole responsibility for making all purchases, remitting all payments to AMCS and for ensuring that Customer and all Affiliates comply fully with the terms of the Agreement.

2.3 If Customer wishes to acquire any additional Services during the Term, such Services shall be specified in a Proposal issued by AMCS and signed by Customer and shall be subject to the terms of this Agreement. Where such Proposal is executed on a date other than an anniversary of the Effective Date, any applicable annual Fees shall be calculated and invoiced pro - rata from the date of the Proposal until the next anniversary of the Effective Date. In all subsequent years of the Term such additional annual Fees shall be payable in accordance with these HaaS Terms. This provision shall not apply to any Fees to be paid on a monthly or reimbursement basis.

2.4 AMCS will also, at no additional cost to Customer, provide the Support Services during the Hours of Coverage in accordance with AMCS’ Support Services Policy in effect at the time that the Services is provided. AMCS may amend the Supp ort Services Policy in its sole and absolute discretion from time to time.

2.5 AMCS shall provide Professional Services to Customer as may be agreed by the Parties from time to time and specified in a Proposal and/or a Work Order. All Professional Services shall be provided on the terms of this Agreement, which terms shall be varied only as stated in the applicable Proposal or a Work Order and only in relation to AMCS’ provision of the Services specified therein. AMCS will use reasonab le efforts to carry out the Professional Services as stated in a Proposal or Work Order, as applicable and, except as expressly stated in the Proposal or Work Order, Professional Services and the results thereof are provided on a time and materials basis and ‘as is’. 3 Customer Obligations

3.1 Customer shall allow AMCS reasonable access to, and use of, Customer’s general facilities and services within the Designated Premises to facilitate AMCS’ performance of its obligations under this Agreement.

3.2 Customer shall ensure that AMCS is permitted the requisite access to Customer’s Vehicle(s) as necessary to enable AMCS to perform the Support Services under this Agreement. AMCS shall not be liable for any failure to provide Support Services resulting from Customer’s breach of such obligation.

3.3 Customer shall: (a) operate the Hardware in a proper, safe and prudent manner in accordance with the instructions and training provided by AMCS at the commencement of the Agreement and the Documentation; (b) ensure that the Hardware is operated with all due care and attention by properly skilled and trained personnel; (c) immediately notify AMCS, in writing, of any loss and/or damage to the Hardware and fully indemnify AMCS in respect of any such loss or damage to the Hardware; (d) keep the Hardware in Customer’s possession and control at the Designated Premises and not hold itself out as owner of the Hardware or charge, sell, sub-let, lease or hire or otherwise dispose of, part with nor abandon the Hardware nor assign any of its rights or obligations hereunder nor allow the creation of any charge over the Hardware nor without the previous written consent of AMCS attach the Hardware to any land or premises so as to cause it to become a permanent or immovable fixture on such land or premises; (e) ensure that at all times the Hardware is clearly and indelibly marked as being the property of AMCS; (f) permit AMCS to inspect the Hardware and carry out modifications at all reasonable times, or at any time in the event of an emergency; and, (g) at the expense of AMCS, take all such steps as AMCS may reasonably require to assist AMCS in maintaining the validity and enforceability of AMCS’ Intellectual Property. 117

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 2 of 16

3.4 Customer shall not: (a) make any modifications to the Hardware or i ts packaging; (b) alter, remove or tamper with any Trade Marks, numbers, or other means of identification used on or in relation to the Hardware, use any of the Trade Marks in any way which might prejudice their distinctiveness or validity or the goodwill of AMCS therein; (c) use in relation to the Hardware any trade marks other than the Trade Marks without first obtaining the prior written consent of AMCS, nor use any trade marks or trade names so resembling any Trade Mark or any trade names of AMCS likely to cause confusion or deception; and, (d) Customer shall have no rights in respect of any Trade Marks or any trade names used by AMCS in relation to the Hardware or any goodwill associated therewith, and Customer hereby acknowledges that, except as expressly provided in this Agreement, it shall not acquire any rights in respect of any Trade Marks or any trade names and that all such rights and goodwill are, and shall remain, fully vested in AMCS.

3.5 Customer shall promptly and fully notify AMCS of any actual, threatened or suspected breach of any AMCS’ Intellectual Property upon coming to Customer’s notice, and Customer shall at the request and expense of AMCS do all such things as may be reasonably required to assist AMCS in taking or resisting any proceeding s in relation to any such infringement or claim.
4 Responsibilities of AMCS

4.1 Support Services will be provided by AMCS in accordance with the Support Services Policy during the Hours of Coverage.

4.2 Where Customer requests additional services, which are outside the scope of the Support Services (which would be Professional Services), AMCS may provide such requested Professional Services at AMCS’ Professional Services rates and on the terms of this Agreement and the Professional Services terms in Schedule 3.

4.3 AMCS’s personnel shall: (a) Comply with all reasonable requests and instructions of Customer’s employees (a reasonable request or instruction is one that does not breach any applicable health and safety laws nor the terms of this Agreement); and, (b) Comply wit h Customer’s access, health, safety and security procedures provided to AMCS in writing whilst at Customer’s Site.

4.4 At the expiration of the Term, AMCS shall remove all AMCS Hardware supplied under this Agreement from Customer’s Site and/or Vehicles, unle ss otherwise agreed in writing with Customer. AMCS will liaise with Customer to schedule such removal. In the event that AMCS is not permitted to retrieve the Hardware and/or is not permitted access to Customer’s Site and/or Vehicles, AMCS reserve the right to charge Customer for the Hardware. 5 Title and Risk

5.1 Customer acknowledges, understands and agrees that this is not a purchase agreement. CUSTOMER WILL NOT ACQUIRE ANY TITLE TO ANY HARDWARE UNDER THIS AGREEMENT. Title to and ownership of all Hardware is and, at all times, shall remain with AMCS. For the avoidance of any doubt, no title shall pass to Customer by virtue of this Agreement, nor under any other document, agreement or lease, and Customer has not acquired, and never shall acquire, any right or equity in or to the Hardware, except as expressly set out in this Agreement. Save as expressly provided under this Agreement AMCS shall bear the exclusive burden and cost of any reasonable wear and tear to the Hardware during the Term of this Agreement.

5.2 Customer shall not sell or offer for sale, nor purport to sell, assign, mortgage, pledge, underlet or lend, the Hardware nor any interest therein but shall, at all times during the Term, keep the Hardware in Customer’s possession and shall prevent the creation of any charge thereon. Further Customer shall not attach any of the Hardware to any land or premises so as to cause it to become part thereof.

5.3 Customer shall ensure that the Hardware is not seized nor taken out of Customer’s possession or control but, if any Hardware is so seized or taken, Customer shall give immediate notify AMCS in writing and shall fully indemnify AMCS against any and all losses, costs, charges, damages and expenses incurred by reason, or in respect, thereof.

5.4 AMCS may cause to be affixed to the Hardware or any part or parts thereof such plates or other marks indicating that such Hardware is the property of AMCS, as AMCS may think fit, and Customer shall allow such plates or marks to remain so affixed and shall not obliterate, deface or in any way obfuscate the same or suffer any other person to do so.

5.5 Customer shall not make any alterations, additions or improvements to the Hardware unless with the prior written consent of AMCS. If AMCS permit Customer to make any alteration s, additions and improvements (including any repairs and/or renewals carried out by Customer pursuant to its obligations under this Agreement or otherwise) to the Hardware the same shall be and remain the property of AMCS.

5.6 Customer shall permit AMCS at a ll reasonable times, upon seven (7) days prior written notice, to access the Hardware at the Site and/or Designated Premises for the purpose of inspecting the Hardware, performing the Support Services, affixing the aforementioned plates or marks and keeping the Hardware repaired in accordance with this Agreement and Customer shall make reasonable facilities available to AMCS to facilitate the same.

5.7 Customer shall be responsible for all risk of loss of, or damage to, the Hardware from the Delivery Date. C ustomer shall ensure that all Hardware is properly and fully insured to its full replacement value against all risks and shall, on request by AMCS, provide a copy of such insurance policy and evidence that the premium has been paid in full when due. 118

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 3 of 16

5.8 Customer undertakes to keep the Hardware separate from Customer’s other equipment or other hardware save in so far as same has been installed on a Vehicle. Customer shall, at all times, ensure that the Hardware is clearly marked and identified as the property of AMCS.

5.9 Customer undertakes to keep and operate the Hardware in accordance with appropriate and proper operational and environmental conditions.
6 Charges and Payment

6.1 AMCS will invoice and Customer will pay the Fees as stated in the Proposal.

6.2 Where AMCS perform Professional Services, Professional Services Fees shall be invoiced by AMCS on a so -called time and material basis at the rates set out the Proposal unless such rates are expressly varied in a subsequent Proposal or addenda thereto.

6.3 All Fees under this Agreement: (a) will be payable in the Currency; (b) are non-cancellable and non -refundable; (c) relate to quantities purchased and cannot be decreased during the relevant Term; (c) are exclusive of value added or other sales taxes, which will be added to AMCS’ invoices at the appropriate rate required by law; and, (d) shall be paid within thirty (30) days from date of invoice (the “due date”).

6.4 AMCS shall be entitled to make an annual adjustment to the Fees. The Fees shall be reviewed prior to each anniversary of the Effective Date during the Term. The adjustment, following such review, shall be the greater of (a) three percent (3%); or, (b) the applicable consumer price index . Such percentage increase shall be applied to the Fees with effect from the next anniversary of the Effective Date. The then Fees in any year shall be the basis of assessing the adjustment for the subsequent year.

6.5 Should Customer have a bona fide dispute in respect of all or any part of any invoice(s) Customer will notify AMCS, in writing and with sufficient details to allow AMCS to investigate, the nature of the dispute within ten (10) Business Days of its receipt of the invoice. Following any such notice, Customer will be entitled to withhold payment of the amount in dispute without interest but will promptly pay all undisputed amount(s) in accordance with th ese HaaS Terms. The Parties will cooperate in good faith to resolve any such dispute as amicably and promptly as possible and on settlement of the dispute Customer will make the appropriate payment in accordance with these HaaS Terms.

6.6 If AMCS has not received payment within fifteen (15) days after the due date, and without prejudice to any other rights and remedies of AMCS, it will be entitled to: (a) disable Customer’s passwords and access to all or part of the Services and AMCS will be under no obligation to provide any or all of the Services while the invoice(s) concerned remain unpaid; and/or, (b) charge interest on a daily basis on such due amounts at the rate of one point five percent (1.5%) of the outstanding balance per month, or the maximum rate permitted by law, whichever is lower, from the date such paymen t was due and continuing until fully paid, whether before or after judgment. 7 Intellectual Property Rights

7.1 AMCS and/or its licensors own all Intellectual Property Rights in and to the Hardware and Documentation. AMCS reserves all rights to or in, any Intellectual Property Rights, and to any other rights or licenses not expressly granted herein.

7.2 To the extent that any modifications or improvements to the Hardware or Documentation are carried out under or in connection with these HaaS Terms and/or the Agreement, whether by AMCS alone or jointly with Customer, all Intellectual Property Rights in and to the underlying ideas and in any resulting improvement or modifications, will be assigned to, will vest with and will be solely owned by AMCS.
8 DPL and Customer Data

8.1 Both parties will comply with all applicable requirements of the DPL. Customer will enter Personal Data (as defined by the DPL) onto the AMCS PlatformTM. To the extent that AMCS is a Processor of Personal Data (as defined by the DPL), it will process such Personal Data in accordance with the DPL and the DPA . For the purposes of the DPA and the Standard Contractual Clauses in Customer is the data exporter and Customer’s acceptance of this Agreement shall be treated as Customer’s signature on and acceptance of the DPA and Standard Contractual Clauses.

8.2 AMCS will follow its archiving procedures for Customer Data as set out in its Data Back-Up and Retention Policy as such document may be amended by AMCS in its sole discretion from time to time.

8.3 In the event of any loss or damage to Customer Data, Customer ’s sole and exclusive remedy will be for AMCS to use reasonable commercial endeavors to restore the lost or damaged Customer Data from the latest back-up of such Customer Data maintained by AMCS in accordance with the archiving procedure described in its Back -Up Policy.

8.4 AMCS will not be responsible for any loss, destruction, alteration or disclosure of Customer Data caused by any third party (except those third parties sub-contracted by AMCS to perform services related to Customer Data maintenance and back - up).
9 Confidentiality

9.1 Each Party ( “Receiving Party ”) acknowledges that in the course of performing the Ser vices and/or its duties under th e Agreement, it may obtain Confidential Information from the other Party ( “Disclosing Party”).

9.2 During the Term and thereafter, the Receiving Party will treat all Confidential Information as secret, confidential, and proprietary, and will not disclose or use the same without the prior written consent of the Disclosing Party, other than to 119

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 4 of 16 the Receiving Party’s employees and contractors on a need to know basis for the purpose of performing its obligations hereunder, or as required by law. The Receiving Party will implement such procedures as it considers reasonably necessary to prevent the intentional or negligent disclosure to any third party of any Confidential Information. Notwithstanding the foregoing, nothing herein will prevent the disclosure by the Receiving Party or its employees of information that: (a) prior to its disclosure to the Receiving Party, was of general public knowledge; (b) becomes, subsequent to its disclosure to the Receiving Party, a matter of gene ral public knowledge other than as a consequence of a breach by the Receiving Party of any obligation under these HaaS Terms; (c) is made public by the Disclosing Party; or , (d) is received in good faith from a third party having the right to disclose it, who, to the Receiving Party’s knowledge, did not obtain such information from the Disclosing Party and who imposes no obligation of secrecy on the Receiving Party with respect to such information. 10 Indemnification

10.1 Customer shall be solely responsible, and s hall indemnify AMCS, for all loss theft or destruction of or damage to the Hardware, or any part of the Hardware, howsoever caused or occurring at any time or times before physical possession thereof is re-taken by AMCS save only reasonable wear and tear.

10.2 If the Hardware or any part thereof is lost, stolen, destroyed or damaged due to any cause whatsoever Customer shall immediately notify AMCS. Customer shall not settle nor compromise any claim relating to damaged Hardware with any third party without the prior written consent of AMCS.

10.3 In respect of any monies received by Customer, whether under a policy of insurance or in respect of any claim or proceedings, Customer shall: (a) on behalf of AMCS expend the moneys received so far as may be necessary in fully repairing the relevant Hardware or replacing the same with similar Hardware to that lost, stolen, destroyed or damaged in which event such that the replacement Hardware shall be owned by AMCS and used by Customer subject to the terms of this Agreement; or, (b) with the prior consent of AMCS (not to be unreasonably withheld) pay to AMCS the monies received (together with any further monies which may be necessary from Customer's own resources) to the extent necessary to discharge any and all unpaid Fees accrued on the relevant Hardware up to the date of such payment and to compensate AMCS for the loss, theft, destruction of or damage to the Hardware the measure of such compensation to be the loss to AMCS during the Term of this Agreement but subject to A MCS's normal obligation to minimize loss whereupon this Agreement shall come to an end or (if the relevant Hardware is only part of those comprised in this Agreement) shall thereafter apply only to the balance of the Hardware comprised therein and the rent payable thereunder shall be reduced accordingly; and, (c) any balance of any moneys so received may be retained by Customer.

10.4 Save as provided in clause 10.3 the loss, theft or destruction of or damage to any Hardware shall not affect the continuation of this Agreement nor Customer's liability for the Annual Subscription Fees and for any Professional Services hereunder.

10.5 Customer shall be fully liable for any damage or failure of operation of the Hardware arising through misuse or negligence or through a breach by Customer of any of its responsibilities set out in clause 3 of this Agreement. 11 Limitation of Liability

11.1 Nothing contained in this clause 11 will limit: (a) either Party ’s liability for death or personal injury resulting from that Party’s negligence; (b) either Party ’s liability for fraud or breach of clause 9; or, (c) Customer’s liability for breach of Customer’s payment obligations and clauses 3; 5 and 7.

11.2 Subject to clause 11.1, and except to the extent that any loss or damage to the Hardware is caused by the wrongful acts or omissions of AMCS: (a) AMCS shall not be liable to Customer for any loss, liability, claim or proceedings in respect of any injury or damage of whatever nature and howsoever caused arising out of or in connection with the Hardware or any part thereof and Customer shall indemnify AMCS against any claims made or proceedings brought against AMCS in respect of any injury or damage whatsoever arising out of or in connection with the Hardware or any part thereof; (b) AMCS shall not be liable to Customer for any loss or damage arising out of or in connection with this Agreement and Customer shall indemnify AMCS against any claims made or proceedings brought against AMCS in respect of any such loss or damage; and, (c) In no event will AMCS be liable for any loss of profits, loss of use, business interruption, loss of data, cost of cover or indirect, special, incidental or consequential damages ev en if AMCS has been advised of the possibility of such damages.

AMCS will not be liable for any damages caused by delay in delivery or furnishing the Hardware or the Support Services.

11.3 Subject to clause 11.1, AMCS’ total aggregate liability in contract, tort (including negligence or breach of statutory duty), misrepresentation (whether innocent or negligent), restitution or otherwise, arising in connection with the performance or contemplated performance of this Agreement will be limited in any twelve (12 ) month period (the first of which will commence on the Effective Date and subsequently on each anniversary thereof) to the Subscription Fees paid to AMCS in respect of the twelve (12) month period in which the claim arose. 12 Termination

12.1 Either Party may imm ediately terminate this Agreement, and Customer’s access to the Services, at any time in the event that the other Party: (a) commits a material breach of this Agreement which is not capable of remedy; (b) commits a material breach of this Agreement which is capable of remedy and fails to remedy that breach within a period of thirty (30) days after being notified in writing to do so, save that the period shall be ten (10) days where Customer is in breach of its payment obligations hereunder; (c) makes any assignment of assets or business for the benefit of creditors, or if a trustee 120

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 5 of 16 or receiver is appointed to administer or conduct its business or affairs, or if it is adjudged in any legal proceeding to be either a voluntary or involuntary bankruptcy.

12.2 Termination of this Agreement will not affect the Parties’ rights and remedies that have accrued as at termination, including the right to claim damages in respect of any breach of this Agreement which existed at or before the date of termination.

12.3 The following clauses will survive any termination of this Agreement: 3, 5, 6, 7, 8, 9, 12.2, 14, 15, 17 and 20. 13 Force Majeure

13.1 Neither Party will have any liability to the other Party under this Agreement if it is prevented from, or delayed in, performing its obligations under this Agreement, or from carrying on its business, by acts, events, omissions or accidents beyond its reasonable control, including strikes, lock -outs or other industrial disputes (excluding any industrial disputes involving its own workforce), act of God, war, riot, terrorism civil commotion, compliance with any law or regulation, fire, flood or storm (each a “Force Majeure Event”), provided that: (a) a Party affected by the Force Majeure Event (“Affected Party”) is notified by the Party experiencing the Force Majeure Event (“Delayed Party”), including its expected duration; and, (b) the Delayed Party uses all reasonable endeavors to mitigate, overcome or minimize the effects of the Force Majeure Event ; and that if the period of delay or non-performance continues for thirty (30) days or more, the Affected Party may terminate this Agreement by giving ten (10) Business Days’ written notice to the Delayed Party. 14 Notices

14.1 Normal communications between the Parties in respect of commercial matter s will be conducted by email.

14.2 Any notice or other communication required to be given to a Party under or in connection with this Agreement (such as a termination notice or the like) will be in writing and will be delivered by hand or sent by pre -paid registered post or other next working day delivery service providing proof of delivery, at its principal place of business as set out above.

14.3 Any notice or communication will be deemed to have been received if delivered by hand, on signature of a delivery receipt or at the time the notice is left at the proper address, or otherwise at 9.00 am on the second Business Day after posting or at the time recorded by the delivery service.

14.4 This clause does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution. For the purposes of this clause, ‘writing’ will not include e-mail. 15 Review of Usage

15.1 Customer shall monitor its own usage of the Services and if at any time the Se rvices then in use by Customer exceeds that which Customer has then purchased Customer will promptly contact AMCS to seek a quotation for, and will purchase, the additional Services required , each such purchase shall be for the remainder of the Initial Ter m or the then applicable Extended Term but shall be subject always to a minimum purchase period of twelve (12) months.

15.2 With prior written notice (which notice may include email communication) AMCS shall have the right to remotely review Customer’s use of the Services and compliance with the terms of this Agreement. AMCS shall bear the expense of any such review. AMCS sha ll treat as confidential information all information gained as a result of any such review and shall only use or disclose such information as required by law or to enforce its rights under this Agreement.

15.3 If AMCS discovers that Customer’s use of the Services exceeds the level then purchased AMCS shall invoice, and Customer will remit to AMCS, the underpaid Fees due to AMCS for such use subject to a minimum purchase period of twelve (12) months. Where used in this provision, “the underpaid Fees” means the Fees stated for a Service or product in the Proposal together with any Fee increases applicable under clause 6.4.

15.4 The Services utilize automated systems that continually monitor its availability and usage. The provisions of this clause 15 shall survive the termination of this Agreement.
16 Dispute resolution

16.1 Any dispute or claim arising out of or in connection with this Agreement (unless otherwise set forth herein) shall in the first instance be resolved as follows: (a) for a period of thirty (30) days after a dispute arises the respective appropriate officers of the Parties shall negotiate in good faith in an effort to resolve the dispute ; and (b) if the dispute has not been resolved at the close of such thirty (30) day period, the matter shall be finally settled by Alternative Dispute Resolution (“ ADR”) in accordance with the provisions set forth herein.

16.2 If the dispute has not been resolved then on the written request of any party it can be referred to an independent mediator, the identity of whom shall be agreed between the parties. In the event the mediator cannot be agreed by the parties within fourteen (14) days of one party’s written request to appoint a mediator, the office of the International Centre for Dispute Resolution (“ICDR”) in the Country shall appoint a single independent mediator in accordance with the rules of the ICDR.

16.3 The costs of ADR shall be shared equally, ADR shall take place in the Country and in English. In the event that within a period of sixty (60) days of the appointment of a mediator, the mediator is unable to resolve the dispute, the parties may submit the matter to the non-exclusive jurisdiction of the courts of the Country. 17 Assignment

17.1 AMCS may assign, novate or otherwise dispose of any or all of its rights and obligations under this Agreement and any associated third-party licenses to any of AMCS's affiliates or a successor by merger or an acquirer of assets and to any other person without the prior written consent of Customer.
121

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 6 of 16

17.2 Customer may not at any time assign, novate or deal in any other manner with any of its rights and obligations under this Agreement without the prior written consent of AMCS, such consent not to be unreasonably delayed or withheld. 18 General

18.1 Nothing in this HaaS Terms or the Agreement will be construed to give any Party the power to direct or control the daily activities of another Party, or to constitute the Parties as principal and agent, employer and employee, franchiser and franchisee, partners, joint venturers, co-owners or otherwise as participants in a joint undertaking.

18.2 The remedies of the Parties under th e Agreement are cumulative and will not exclude any other remedies to which the Party may be lawfully entitled.

18.3 The failure of any Party to insist on strict performance of a covenant hereunder or of any obligation hereunder will not be a waiver of such Party’s right to demand strict compliance therewith in the future.

18.4 In the event any provision, clause, sentence, phrase, or word hereof, or the application thereof in any circumstances, is held to be invalid or unenforceable, such invalidity or unenforceability will not affect the validity or enforceability of th e remainder hereof, or of the application of any such provision, sentence, clause, phrase, or word in any other circumstances.

18.5 AMCS may periodically modify these HaaS Terms, for example to reflect changes to applicable laws, to AMCS’ terms, to the Services, etc. Customer should review these HaaS Terms regularly. AMCS will post notice of updated versions of these HaaS Terms on the AMCS’ web portal which is available to all Authorized Users. Customer’s continuing use of, or access to, the Services following AMCS’ publication of any updated version of the HaaS Terms after such revised HaaS Terms enters into effect, shall be conclusive evidence that Customer has reviewed and agreed to be bound by the revised HaaS Terms. 19 Entire Agreement

19.1 This Agreement constitutes the entire agreement between the Parties and supersedes all previous discussions, correspondence, negotiations, arrangements, understandings and agreements between them relating to its subject matter.

19.2 Each Party acknowledges that in entering into this Agreement it does not rely on, and will have no r emedies in respect of, any representation or warranty (whether made innocently or negligently) that is not set out in this Agreement.

19.3 Nothing in this clause will limit or exclude any liability for fraud.

19.4 No alteration to or variation of this Agreement will take effect unless and until the same is in writing and signed on behalf of each of the Parties by a duly authorized representative. 20 AMCS, Currency, Law and Jurisdiction

20.1 The Currency, the AMCS party with which Customer is contracting, the law , exclusive of its choice of law provisions, that will apply in any dispute or lawsuit and the courts with exclusive jurisdiction over any such dispute or lawsuit is determined by the Country based on the following:

If Country is:

Currency
means: AMCS means: Governing Law and courts having exclusive jurisdiction are:

USA USD
AMCS GROUP INC. with its principal
place of business at 179 Lincoln
Street, Boston, MA 02111
Massachusetts law, with the courts of
Boston, Massachusetts having jurisdiction
Canada CAD
AMCS CANADA INC. with its
registered office at 485 Pinebuch
Road, Suite 302, Cambridge ON
Canada N1T 0A6
The laws of the Province of Ontario, with the
courts of Ontario, Canada having jurisdiction
21 Definitions

21.1 The definitions and rules of interpretation in this clause apply to these HaaS Terms. “Affiliate” means any entity that directly or indirectly controls, is controlled by, or is under common control with the subject entity. “ Control” for purposes of this definition, means direct or indirect ownership or control of more than fifty (50%) of the voting interests of the subject entity;
“Agreement” these HaaS Terms together with any associated Proposal and/or Work Order as well as all document(s) referenced therein;
“AMCS” shall have the meaning specified in clause 19 above; "Annual Subscription Fees" the annual subscription fees payable by Customer to AMCS for the Services, as set out in a Proposal;
“Business Day” a day other than a Saturday, Sunday or public holiday in the Country when its banks are open for business;
“Confidential Information” all documentation, technical information, software, business information, feedback, pricing of the Services, reports issued from the Service s, trade secrets or know how or other materials of a confidential nature disclosed by one Party to the other Party and in connection with these HaaS Terms;
122

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 7 of 16 “Country” means the country where Customer is situate, as country is specified in the Customer’s address set out in the Proposal;
“Currency” shall have the meaning specified in clause 19 above; “Customer” the party (company or legal entity) entering into this Agreement either by its use of, or access to, the Services and/or signing a Proposal;
“Documentation” any document(s) made available to Customer by AMCS online via AMCS’ website or such other web address notified by AMCS to Customer from time to time and all materials provided by AMCS, directly or indirectly, to Customer containing a description of, and the user instructions for, the Services as well as information about AMCS’ Intellectual Property Rights and/or the Services, including but not limited to usage instructions, videos, online materials, writings, drawings, graphs, charts, photographs and other data compilations in any media whatsoever;
“Data Processing Addendum”
or “DPA”
the terms on which Customer authorizes AMCS, and AMCS undertakes, to process Personal Data to provide the Services, which DPA is set out at Schedule 3 hereto and is incorporated into the Agreement by this reference;
“Data Protection Legislation”
or “DPL”
(a) the General Data Protection Regulation (EU 2016/679) and the Data Protection Act 2018 and any amendments thereto; and, (b) the terms " Controller", "Processor", "Data Subject", "Personal Data" and "processing" when used in this Agreement will have the meanings set out in the DPL;
“Effective Date” that date specified in the Proposal (if no date is specified, the Effective Date shall be the date the Proposal is last signed or accepted by any ‘click to accept’ process by Customer);
“Extended Term” each successive period of one (1) year; “Fees” a collective term for the Subscription Fees, the Professional Services Fees and any other fees due from Customer to AMCS under a Proposal and/or these HaaS Terms; “Hardware” those items of AMCS’ hardware, which are supplied as a service under this Agreement, and identified (by type, serial number and price) in a Proposal; “Hours of Coverage” between the hours of 09:00 to 17:30 on a Business Day in the Country; “Initial Term” five (5) years from the Effective Date, unless expressly varied in a Proposal; “Intellectual Property Rights”

any and all intellectual property rights of any nature, whether registered, registerable or otherwise, including patents, utility models, trademarks, registered designs and domain names, applications for any of the foregoing, trade or business names, goodwill, copyright and rights in the nature of copyright, design rights, rights in databases, moral rights, know -how and any other int ellectual property rights that subsist in computer software, computer programs, websites, documents, information, techniques, business methods, drawings, logos, instruction manuals, lists and procedures and particulars of customers, marketing methods and p rocedures and advertising literature, including the “look and feel” of any websites, and in each case all rights and forms of protection of a similar nature or having equivalent or similar effect to any of these that may subsist anywhere in the world, in each case for their full term, together with any future rights and renewals or extensions; “Professional Services” any consulting, Implementation and/or training services set out in the Proposal, Proposal or a Work Order and provided in accordance with the terms set out at Schedule 2 hereto and is incorporated into the Agreement by this reference; “Professional Services Fees” the fees payable by Customer to AMCS for any Professional Services, which fees shall be charged at the rates specified in the Proposal, unless varied in a subsequent Proposal or any addenda thereto;
“Proposal” means any written document (which may be computer generated and could be referred to as, without limitation, an offer, an order form, a quotation, a proposal or some other designation) issued by AMCS to, and accepted by, Customer setting out the commercial and any other terms on which the AMCS’ Services specified therein are offered to Customer;
“Schedule” any schedule referenced in the Proposal and/or these HaaS Terms; 123

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 8 of 16 “Services” a collective term for AMCS’ provision of the Hardware, Support Services , any Professional Services and such other services as are agreed between the Parties either in a Proposal, a Proposal, a Work Order or as otherwise agreed in writing signed by the Parties;
“Standard Contractual
Clauses” or “SCC”
those standard contractual clauses published under the General Data Protection Regulation (GDPR) setting out the minimum required terms for the transfers of personal data to European Union and non-European Union countries, which terms are set out as a Schedule to the Data Processing Addendum;
“Support Services” AMCS’ standard customer support services to be provided by AMCS to Customer on the terms of the Support Services Policy;
“Support Services Policy” the terms on which AMCS will provide Support Services to Customer, which terms are set out at Schedule 1 hereto and is incorporated into the Agreement by this reference; “Term” the Initial Term and any Extended Term;
“Work Order” a written record, signed by the Parties, setting out the terms on which Customer and AMCS agree that AMCS shall provide Professional Services to Customer.

21.2 Unless the context otherwise requires, words in the singular will include the plural and in the plural will include the singular.

A reference to a statute or statutory provision is a reference to it as amended, extended or re -enacted from time to time.

Any phrase introduced by the words including, includes, in particular, or for e xample, or any similar phrase, will be construed as illustrative and will not limit the generality of the related general words. References to clauses and schedules are to the clauses and schedules of these HaaS Terms. A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality).

21.3 If there is an inconsistency between any of the provisions in these HaaS Terms and the Proposal, the provisions of the Proposal will prevail.

124

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 9 of 16 SCHEDULE 1

SUPPORT SERVICES POLICY

1 SERVICES

1.1 In consideration of and subject to Customer’s payment of the Subscription Fees, AMCS will during the Term provide the Support Services in accordance with the Agreement and this Support Services Policy. For clarity, Support Services do not include or replace Professional Services.

1.2 AMCS will provide Support Services for all Support Cases during the Hours of Coverage. Support Cases can be logged by Super Users 24/7/365 through the Customer Support Portal.

1.3 AMCS undertakes aut omated monitoring of the AMCS Platform TM and will promptly address any system down issues identified by such monitoring, even if outside of the Hours of Coverage. 2 DEFINITIONS

2.1 “Customer Support Portal” means AMCS’ on -line portal ( https://www.amcsgroup.com/company/global-customer- support/) through which Customer can submit Support Case(s).

2.2 “Super User ” means an Authorized User who is also authorized by Customer to submit Support Case(s) on behalf of Customer.

2.3 “Support Case” means an incident reported by a Super User to AMCS requesting Support Services assistance.

2.4 “Support Services” means provision of AMCS’ standard support, break fix and update services (and shall not include any Premium Services, Customer requests or change requests). 3 LOGGING A SUPPORT CASE

3.1 Super Users may log Support Cases through the Customer Support Portal.

3.2 For P1 Priority Code Support Cases only : Super Users may also submit any P1 Priority Code Support Case by telephone through the AMCS customer support helpdesk. For any P1 Support Case logged during the Hours of Coverage AMCS will work on a ‘work to completion’ basis or, until a work-around is provided and/or the priority is lowered. 4 PRIORITY

4.1 The impact identified by the Customer when logging a Support Case will determine which of the following levels of priority (“Priority Code(s)”) will apply.

Priority
Code
Description
P1 Critical - The problem is impacting the majority of Users and/or Customer’s clients, the Services (or significant Services functionality) is unavailable with no work around currently available.

P2 High - The problem is causing a serious business impact, impacting a significant number of Users and/or Customer’s clients, performance and/or functionality of the Services is significantly degraded and there is no acceptable workaround currently available.

P3 Moderate - The problem is impacting only a small number of Users and/or Customer’s clients and is causing only a minor business impact or is more serious but there is an acceptable workaround currently available

4.2 Support Case Priority Codes may be adjusted at any time, depending upon impact to Customer. 5 TARGET RESPONSE TIME

5.1 Based on the Priority Code for the Support Case AMCS will respond to and commence work to resolve Support Cases within the response time stated below (“Target Response Time”). Save for P1 Priority Calls, Target Response Times are measured within the Hours of Coverage.

Priority
Code Description Target Response Time
P1 Critical 1 Hour
P2 High 4 Hours
P3 Medium 16 Hours

5.2 Once work to resolve the Support Case is commenced in accordance with the applicable Response Service Level set forth above, AMCS will work diligently and continuously (24x7x365 for P1 Priority Code Support Cases, and during Hours of Coverage for all other Support Cases) until a work around for the Support Case is provided or the Support Case is resolved.

5.3 Customer acknowledges that AMCS’ ability to work continuously may be contingent upon AMCS’ receipt of responses and/or feedback from Customer and that r esolution of a Support Case may be delayed if Customer’s response(s) and/or feedback are not provided in a timely manner.
6 SUPPORT CASE PROCEDURE

6.1 All P1 Priority Code Support Cases will be on a ‘work to completion’ basis or until a work-around is provided, whereupon the Priority Code will be lowered.
125

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 10 of 16

6.2 Super User shall provide a sufficiently comprehensive and clear description of the problem when subm itting a Support Case including, to the extent applicable , details of the steps to reproduce the problem and copies of screenshots where appropriate.

6.3 Customer will provide timely responses to all reasonable requests for additional information in relation t o the Support Case. Delays in providing requested additional information may delay the Support Case resolution timeline.

6.4 Once the Support Case has been received, AMCS will confirm receipt and commence work in line with the applicable Target Response Time set forth in the table above. The most efficient way to submit or raise a case is via the Customer Support Portal. If a Support Case is raised via telephone, then AMCS will enter the Support Case (and each resolution) into the Customer Support Portal.

6.5 AMCS will investigate each Support Case in order of Priority Code and provide Customer event resolution path progression in accordance with the Priority Codes table above via the Customer Support Portal.

6.6 At any time, Customer can check the current status of a Support Case through AMCS’ Customer Support Portal.

6.7 If the resolution option(s) are not immediately apparent AMCS will provide the Customer with a plan of action in response to the Support Case. Such plan of action will include a description of the requ ired activities and assign appropriate responsibilities and timescales for each activity. In addition, but for P1 Priority Cases only, AMCS will communicate the plan of action to the Customer orally in the first instance.

6.8 AMCS will keep Customer apprised of the status versus plan of action for each open Support Case via the Customer Support Portal.

6.9 Closing a Support Case:

6.9.1 If a Support Case is closed because it has been successfully resolved, AMCS will provide a description of the final solution to Customer within the Customer Support Portal.

6.9.2 If a Support Case has not been successfully resolved, then AMCS will not close the Support Case unless the issue is shown to be outside of AMCS’ responsibility in which case AMCS may close the Support Case irrespective of whether Customer deems the issue is resolved.

6.9.3 If Customer considers that a Support Case has incorrectly been deemed closed by AMCS, Customer shall inform AMCS and provide a brief description of the outstanding issue(s ), in which case AMCS will reopen th e Support Case.

6.10 AMCS will use reasonable endeavors to have local language speaker(s) available during the Hours of Coverage. But, unless otherwise stated in the Agreement, the primary language of communications between AMCS and Customer will be English.
7 UPTIME

7.1 AMCS will use all reasonable efforts to ensure that the Services are available and functioning in accordance with its specifications for the Uptime.

7.2 “Uptime” means that the Services shall be available for ninety-nine point nine percent (99.9%) per annum . Uptime is calculated monthly by dividing the number of minutes in the applicable month during which the Services are available and functioning properly by the total number of minutes in such month.

7.3 Uptime shall exclude any period of time that the Services are not available for any of the following reasons:

7.3.1 AMCS is performing scheduled system upgrades, enhancements or routine maintenance. The timing of system upgrades etc will be coordinated with Customer for appropriate scheduling;

7.3.2 problems caused by defects in Customer Data as uploaded to the AMCS PlatformTM by Customer;

7.3.3 events of Force Majeure;

7.3.4 Customer’s inability to access the internet that is not caused by AMCS;

7.3.5 suspension of Customer’s access to the Services in accordance with the terms of the Agreement;

7.3.6 problems caused by Customer’s or User’s use of the Services where the defined business process is not followed;

7.3.7 problems arising from Customer’s third-party software or applications including any ISP problems;

7.3.8 problems caused by hardware provided by Customer;

7.4 Business Continuity: AMCS provides an in-built disaster recovery plan with a guaranteed RPO of five (5) minutes and an RTO target of two (2) hours. Where used in this section: “ RTO” or Recovery Time Objective means the time taken t o reinstate the Service from time of failure; and, “RPO” or Recovery Point Objective is the point in time to which the Service will be recovered.

7.5 Backups: Databases are deployed with a thirty-five (35) day point-in-time restore capability. This ensures a snapshot of the database can be retrieved from any point over the preceding thirty -five (35) days. Long term backup retention is in place where backups are stored for up to ten (10) years.

7.6 Archiving: The extraction of specified Customer Data from the mai n database and placing it in an archive for future Customer access. The Customer Data to be archived along with the archiving strategy and the retention periods will all be agreed with Customer as part of the Implementation process.

7.7 Uptime Availability: AMCS implement Availability Tests to verify Uptime. Such Availability Tests continuously test the 126

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 11 of 16 health of each environment across multiple geographic locations. Availability Tests are currently automatically conducted every five (5) minu tes, mirroring that currently available from Microsoft. If Microsoft increase the frequency of the Availability Tests AMCS shall apply the such same increased frequency to the Availability Tests.

7.7.1 “Availability Tests ” means the URL ping test and the multi -step web test, the Diagnostic Checks and the Regression Tests:

7.7.2 “Diagnostic Checks” review the following Connectivity: between web and data layer, to any required API's, and, to the Reports API and Server as well as version number verification between web a nd database components.

7.7.3 “Regression Tests” verify that a user can: log into the application, log in to the customer portal, navigate to each area of the application, can perform a customer search and, if applicable, that a user can view jobs scheduled at a weighbridge and/or scalehouse.
8 EXCLUSIONS

8.1 AMCS will have no obligation to provide Support Services in connection with any Support Case caused or delayed by:

8.1.1 Customer’s use of the Services other than in accordance with the terms of this Agreement;

8.1.2 Customer’s failure, inability or refusal to allow AMCS’ Support Services personnel proper and uninterrupted access to the Services;

8.1.3 software or malware that has affected the customers infrastructure;

8.1.4 any defect or malfunction of the Customer's network systems and/or internet that is not due to any act or omission of AMCS;

8.1.5 use of the Services by any personnel of the Customer who have not been adequately and/or appropriately trained in its use;

8.1.6 Customer’s refusal to allow the implementation of any bug fixes or updates previously provided by AMCS to Customer unless a reasonable objection to such implementation has been identified by Customer and accepted by AMCS;

8.1.7 the correction of any fault or probl em which is not reported by the Customer to AMCS in accordance with the Support Case procedure; and/or,

8.1.8 either Party being subject to a Force Majeure event. 9 MISCELLANEOUS

9.1 If resolution of a Support Case requires a change to the AMCS PlatformTM and/or the Services AMCS will obtain written authorization (which may include email) to proceed from Customer. AMCS will test any new solution prior to release to Customer.

9.2 AMCS shall, through the Customer Support Portal, provide access to key business metrics includ ing application performance, Services uptime, backlog, individual Support Case status etc.

9.3 The periodic management and performance review process and schedule will be tailored to Customer’s requirements.

Such process and schedule will be finalized during the Implementation process and on-boarding of Customer.

9.4 Customer and AMCS may periodically review Support Cases undertaken by AMCS to identify if additional Customer training is required or whether Services changes would prevent similar problems occurring.

9.5 AMCS may, in its discretion, investigate the root cause of a Support Cases issue and if, as a result of such investigation, AMCS determine that the issue is due to a factor outside the control of AMCS then AMCS shall be entitled to recover from Customer the cost of such investigation at the quoted Professional Services rates.

9.6 Whilst Customer is encouraged to log requests for enhancements or significant changes to the Services, which are not relating to a defect or inherent error in the Services, or to request Professional Services, such requests are excluded from Support Servic es. If Customer wishes AMCS to provide such requested enhancements or changes, or to provide Professional Services, these will be delivered separately, as Professional Services, subject to the Parties first agreeing the parameters of the work required by Customer and the cost to be charged by AMCS in providing the same.

9.7 Any Professional Services purchased by Customer shall be provided on the Professional Services terms set out in this Agreement.

9.8 AMCS provide Support Services for only the then current version of the Services and one (1) prior release. 10 ESCALATION PROCEDURE

10.1 If the Customer is concerned that a request for Services has not been met as set out above, Customer may escalate the issue through the following levels of AMCS’ organization:

Level 1 Support Team Lead on-call
Level 2 Support Manager on-call
Level 3 Regional Head of Customer Support

10.2 Contact details for the above shall be provided to Customer during the on -boarding process.

127

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 12 of 16 SCHEDULE 2

PROFESSIONAL SERVICES

1. Customer has agreed to purchase the Professional Services for Implementation Services as detailed in the Proposal.

Customer may purchase additional Professional Services from AMCS during the Term. AMCS reserve the right to outsource Professional Services.

2. Unless otherwise stated in a Proposal or Work Order, implementation and/or installation are not included. If required by Customer, these will be provided as Professional Services on a time and material basis.

3. Requests for Professional Services shall be made to AMC S in writing, including such information as is required to allow AMCS to consider, quantify and cost such Professional Services request. Where agreed, Professional Services shall be detailed in a Proposal or Work Order, including an estimate of the time a nd cost of providing such Professional Services.

If AMCS decline a request for Professional Services AMCS shall provide written notice to Customer advising that the Professional Services are not agreed and provide the reason(s) for such non -agreement. Cu stomer may accept AMCS’ Proposal or Work Order, as applicable, by signing and returning the Proposal or Work Order to AMCS within ten (10) working days of receipt, failing which the Proposal or Work Order shall be deemed withdrawn.

4. Professional Services ar e provided based on the following assumptions: (i) Customer will leverage the standard AMCS product workflows, printed outputs, templates and reports; (ii) Customer will accept and adopt AMCS’ best practice business process recommendations and strive to ad opt the default AMCS configurations; (iii) modifications to best practices will be limited to compliance with government or regulatory requirements; (iv) project and ‘Hypercare’ duration will be fixed periods, as stated in the Proposal; and, (v) training will be based on a ‘Train the Trainer’ model, wherein Customer will be responsible for training its end users.

5. Success of a Professional Services project is dependent upon Customer: (i) appointing a designated Project Manager, with an alternate, for the dur ation of the project; (ii) providing appropriate project resources, as identified during the plan phase of the project; (iii) providing timely data evaluation, to avoid project testing delays; (iv) providing timely review and sign-off of deliverables docum ents; (v) making timely decisions, so as to adhere to the agreed project schedule; (vi) achieving timely completion of data cleansing and provision to AMCS in the agreed format; (vii) undertaking acceptance and performance testing of the in -scope tasks in a timely manner; (viii) taking responsibility for provision of, and documenting, the test scenario’s applicable to Customer’s business needs and ensuring that comprehensive coverage for UAT is provided; (ix) attending and participating in design, planning and other agreed workshops; (x) performing all Customer tasks in accordance with the agreed project schedule; (xi) promptly providing AMCS with appropriate access to Customer’s existing systems, environments and facilities, as required.

6. If a Change Request arises the Parties will discuss its implications, following which AMCS will provide a written proposal to Customer including details of the impact of the Change Request to the price, timeline and scope of the project. Unless Customer accepts such Change Request proposal within ten (10) working days (which acceptance may be by email) Customer will be deemed to have rejected the Change Request proposal. If the Change Request proposal rejected by Customer relates to a Customer initiated Change Request, the project shall continue upon the existing scope and timeline.

If the Change Request proposal rejected by Customer relates to circumstances beyond the control of the Parties and AMCS is unable to continue the project within the existing price, timeline and scope then AMCS will pause the project until an acceptable compromise is reached by the Parties. Each Change Request proposal agreed between Customer and AMCS shall form part of this Agreement. Where used herein a “ Change Request” means any change to the scope or timeline of a project whether arising from a Customer request for changes or due to circumstances beyond the control of the Parties.

7. Professional Services within a Proposal or a Work Order are an estimate, actual costs may vary.

8. AMCS shall invoice Professional Services monthly in arrears.

9. On-site Professional Services are provided between 9:00am and 5:00pm at Customer’s site, excluding weekends and public holidays (“ local hours ”). If requested by Customer, work performed or travel required outside of local hours whether on-site or remotely will be invoiced at one point five (1.5) times the standard Professional Services rates. Work performed or travel required at weekends or during public holidays will be invoiced at two (2) times the standard Professional Services rates.

10. Professional Services provided remotely will be provided during the local office hours of the assigned AMCS employee.

11. AMCS will use reasonable efforts to carry out the Professional Services which are provided on a time and materials basis and ‘as is’.

12. Professional Services do not include expenses, Customer shall reimburse AMCS for any reasonable and properly incurred out of pocket expenses relating to AMCS’ provision of Professional Services which may include travel time to and from Customer’s site, lodging, meals, telephone, and shipping, as may be necessary in connection with performance of the Professional Services duties under this Agreement by AMCS.

13. If Customer makes any changes to, postponement or cancellation of, Professional Services after the AMCS has arranged 128

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 13 of 16 travel will result in a charge to Customer of one hundred percent (100%) of the travel costs and fifty percent (50%) of the personnel costs.

129

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 14 of 16 SCHEDULE 3

DATA PROCESSING AGREEMENT

1 Definitions
“AMCS Companies” means Advanced Manufacturing Control Systems Limited and any corporation more than fifty percent (50%) owned by Advanced Manufacturing Control Systems Limited provided such corporation is resident within the European Economic Area;
"Data Protection Legislation" means:
(a) the General Data Protection Regulation ( (EU) 2016/679 ) ("GDPR"), the Data Protection Act 2018 and any national implementing laws, regulations and secondary legislation, as amended or updated from time to time, in AMCS's jurisdiction; and
(b) the terms "Data Controller", "Data Processor", "Data Subject", "Personal Data " and " processing" when used in this
Agreement will have the meanings set out in the Data
Protection Legislation.
“Product(s)” means AMCS’ Hardware product(s) supplied and any Services (whether as a cloud based product or delivered as an on -premise product where applicable) to Customer under the terms of the Agreement. “Purposes” means those listed in Annex 1.
“Services” means (i) where the Product(s) are provided and operate in the cloud, any automated processing by the Product(s) and AMCS’ provision of support services and/or professional services or (ii) where the Products are provided and operate on -premise, AMCS’ provision of support services and/or professional services, and as each are more specifically described and defined in the Agreement.
“Third Party Processors” means those third parties listed in Annex 1 and any that Customer subsequently consents to, in writing.
2 Effect of Addendum

2.1 To the extent that the Agreement contains any terms or conditions concerning Data Protection Legislation, this Addendum replaces any such terms or conditions.

2.2 This Addendum constitutes an amendment to the Agreement in accordance with its terms and forms a part of it. All other provisions of the Agreement shall remain in full force and effect. 3 Data Protection

3.1 Both Parties will comply with all applicable requirements of the Data Protection Legislation.

3.2 The Parties acknowledge that for the purposes of the Data Protection Legislation: (i) where the Product(s) are provided and operate in the cloud, Customer is the Data Controller and AMCS is the Data Processor and (ii) where the Product(s) are provided and operat e on-premise, Customer is both Data Controller and Data Processor, whilst AMCS is the Data Processor to the extent Customer seeks the Services.

3.3 Customer authorises AMCS to process Personal Data to provide the Services in accordance with the Agreement an d Annex 1 hereto and AMCS shall process Personal Data for such purposes in compliance with Data Protection Legislation.

3.4 Without prejudice to the generality of clause 3.1, AMCS will, in relation to any Personal Data processed in connection with the performance by AMCS of its Services obligations under the Agreement:

3.4.1 process that Personal Data for the Purposes, only in accordance with the terms of the Agreement and any written instructions of the Data Controller;

3.4.2 if AMCS is required by the laws of any member state of the European Union or by the laws of the European Union applicable to AMCS (" Applicable Laws ") to process such Personal Data for other purposes, promptly notify Customer of such other purposes before performing the processing required by the Applicable Laws unless those Applicable Laws prohibit Processor from so notifying Customer;

3.4.3 subject to clause 3.4.2, not disclose any Personal Data to any third party without the prior written consent of Customer;

3.4.4 ensure that it has in place appropriate tech nical and organizational measures, to protect against unauthorized or unlawful processing of Personal Data and against accidental loss or destruction of, or damage to, Personal Data, appropriate to the harm that might result from the unauthorized or unlawful processing or accidental loss, destruction or damage and the nature of the data to be protected, having regard to the state of technological 130

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 15 of 16 development and the cost of implementing any measures (those measures may include, where appropriate, pseudonymizing and encrypting Personal Data, ensuring confidentiality, integrity, availability and resilience of its systems and services, ensuring that availability of and access to Personal Data can be restored in a timely manner after an incident, and regularly a ssessing and evaluating the effectiveness of the technical and organizational measures adopted by it);

3.4.5 ensure that all AMCS’ personnel who have access to and/or process Personal Data are obliged to keep the Personal Data confidential;

3.4.6 not transfer any Personal Data outside of the European Economic Area unless with the prior written consent of Customer and the following conditions are fulfilled:
(i) Customer or AMCS has provided appropriate safeguards in relation to the transfer; (ii) the Data Subject has enforceable rights and effective legal remedies; (iii) AMCS complies with its obligations under the Data Protection Legislation by providing an adequate level of protection to any Personal Data that is transferred; and (iv) AMCS complies with reasonable instructions notified to it in advance by Customer with respect to the processing of the Personal Data;

3.4.7 assist Customer, at Customer's cost, in responding to any request from a Data Subject and in ensuring Customer's compliance with its obligations under t he Data Protection Legislation with respect to security, breach notifications, impact assessments and consultations with supervisory authorities or regulators;

3.4.8 notify Customer without undue delay on becoming aware of a Personal Data breach;

3.4.9 at the written direction of Customer delete or return (in that format specified in the Agreement or as is produced by using the Product’s standard data export facilities) Personal Data and copies thereof to Customer on termination of the Agreement unless required by Applicable Laws to store the Personal Data;

3.4.10 maintain complete and accurate records and information to demonstrate compliance with this clause 3 (including but not limited to contractual arrangements for the transfer of Personal Data outside the EEA) and allow for audits by Customer or Customer's designated auditor in accordance with the audit provision of the Agreement; and,

3.4.11 comply with all reasonable requests of Customer resulting from any such audit described in clause 3.4.10. 4 Appropriate Safeguards

4.1 AMCS will not appoint any third-party processor of Personal Data under the Agreement, without Customer's prior written consent. Customer hereby consents to the Third -Party Processors processing Personal Data for the Purposes listed in Annex 1 which may include the transfer of Personal Data to such Third-Party Processors.

4.2 Where Customer provides consent pursuant to clause 4.1 AMCS has entered, or will enter, into an agreement with such Third-Party Processor incorporating terms which are substantially similar to those set out in clause 3.4.

4.3 As between Customer and AMCS, AMCS shall remain fully liable for all acts or omissions of any Third -Party Processor appointed pursuant to this clause 4.

4.4 In the event of any loss or damage to Customer Data, Customer's sole and e xclusive remedy will be for AMCS to use reasonable commercial endeavors to restore the lost or damaged Customer Data from the latest back -up of such Customer Data maintained by AMCS in accordance with the archiving procedure described in its Back -Up Policy. _____________________

Annex 1
Processing, Personal Data and Data Subjects

1 Processing by the Provider

1.1 Scope: AMCS may act as a Data Processor in fulfilling the following:

1.1.1 standard day to day processing of Customer data for AMCS Cloud based Products

1.1.2 delivering AMCS Product solutions to Customer

1.1.3 software maintenance and resolution of issues

1.2 Purpose of processing: AMCS will process data for the following reasons:

1.2.1 Provision of SaaS Services: Where AMCS’ SaaS Products operate in the cloud, these products host and process data on behalf of Customer using AMCS developed applications.

1.2.2 Services Delivery: During delivery of AMCS solutions to Customer, it may be necessary to process data on behalf of Customer, which could include:

1.2.2.1 migration of data to AMCS solution database. This could be from one customer database to another. Such database may be located either in the Cloud or on the Customer’s premises.

1.2.2.2 testing of the Product prior to go live.

131

HARDWARE AS A SERVICE (SaaS)
HaaS Terms; EMEA (URL Rev: 220505) Confidential Page 16 of 16

1.2.2.3 assisting Customer with first runs of key business processes, if required.

1.2.2.4 debugging of solution prior to Customer sign off.

1.2.3 Software Maintenance : In order for AMCS to deliver software maintenance services, there will be occasions when AMCS will require access to, and may process, Personal Data in order to satisfactorily resolve issues that arise. Maintenance services may include:

1.2.3.1 case resolution- resolving customer issues that may occur during the use of the Product.

1.2.3.2 upgrading Product – It is important that product version be kept up to date and software support teams may need access to data in the product upgrade process.

1.2.3.3 data archiving- In order to maintain a performing product, it will be necessary to archive data that is no longer required for immediate day to day processing, but may be required to retain for business reasons. In providing this service AMCS software support teams may need access to data in the Product.

1.2.3.4 performing complex configuration or changes – Some changes to Customer’s services or pricing will require assistance of AMCS software support teams. In delivering this service the AMCS software support teams may need access to data in the Product.

1.2.3.5 Developing solutions, features or reports.

1.3 Duration of the processing:

1.3.1 The duration of processing will vary depending on the task or service being delivered but data will only be retained for as long as is necessary to perform and deliver services.

1.3.2 The data that is processed in SaaS products where data is stored in the cloud is retai ned on behalf of the Data Controller. The Data Controller will determine how long that this data is retained for.

1.3.3 If it is necessary to copy data in order to perform maintenance support, the data will be deleted as soon as the support task has been completed and verified by the customer in accordance with AMCS’ policies and procedures.
2 Types of Personal Data
The Product requires certain Personal Data for effective operation of Customer’s business. Such data allows Customer to manage their customers, and to deliver the products and services their customers purchase. The types of personal data that may be processed by AMCS include:

2.1 Name

2.2 Address

2.3 Phone Numbers

2.4 Email Addresses

2.5 Bank Details

2.6 GPS coordinates
3 Categories of Data Subject
The data subjects that AMCS may access or collect data on are as follows:

3.1 Customer: During the course of day to day operations AMCS will have access to Personal Data for the Customer personnel with whom they engage. Correspondence with such personnel would typically be ret ained to document delivery of Services.

3.2 Customer’s customers: The companies and individuals who subscribe to the Customer’s products and services, which customer data is entered into the Product in the course of providing such products and services. 4 Approved Third Party Processors:

4.1 AMCS Companies

4.2 iLand - global cloud service provider

4.3 Microsoft Azure - global cloud service provider

4.4 DSRC (UK) Limited and Data Software Research Company Private Limited (India) - software development services

4.5 Geotab (Canada) – vendor of computerized information services

4.6 Edge R&D, LLC (USA) – professional services consultant

4.7 For All IT (FAIT) - software delivery partner. Cloud service provider

4.8 Dariusz Siwek Logistics (Poland) - software support and development services

132
Visalia City Council
Staff Report
Visalia City Council
707 W. Acequia
Visalia, CA 93291
File #: 23-0105 Agenda Date: 4/17/2023 Agenda #: 4.

Agenda Item Wording:

Request to Authorize the City Manager to file Notice of Completion for the Battery Backup System & Traffic Signal Preemption Project. (Project Numbers 3010-72000/CP0226-999 & 3010- 72000/CP9531-999)
Deadline for Action: None
Submitting Department: Administration -CIP Engineering
Contact Name and Phone Number:

Diego Corvera, Civil Engineer, [email protected], (559) 713-4209 Frank Senteno, City Engineer, [email protected], (559) 713-4331 Nick Mascia, Assistant City Manager, [email protected], (559) 713-4323 Department Recommendation:

Staff recommends that the City Council authorize the City Manager to file a Notice of Completion for the Battery Backup System & Traffic Signal Preemption Project.

Background Discussion:

The Battery Backup System & Traffic Signal Preemption Project contained the two separate CIP projects: Battery Backup System Upgrade (CP0226) and Traffic Signal Preemption Installation Project (CP9531). These projects are the continuation of the existing projects to retrofit all of the City’straffic signals with both battery backup systems and emergency vehicle preemption devices.

All new traffic signal construction and modification projects include BBS and EVP as standard equipment. These two projects were bundled together for cost efficiency as the two projects are similar in the nature of work and overlapping project locations.

The scope of the Battery Backup System (BBS) project was to install a BBS at existing signalized intersections to provide temporary electrical power to the traffic signal during a power outage. The City converted all traffic signals to LED indicators in 2011 which reduced the power consumption for signal operations and made having a BBS feasible to provide temporary electrical power. The BBS will allow a traffic signal to operate in full mode until the battery is drawn down to a predetermined charge level at which point the signal will turn in “red”flash (approx. 6 - 8hours). This is meant to extend the battery life while maintaining minimal level of traffic control until power has been restored and/or to allow City staff time to place stop signs at the intersection in anticipation of a longer than expected power outage. The goal of this, now biennial project, is to retrofit all existing traffic signals to increase traffic safety during a power outage. The intersections are selected in order of the highest traffic volume to the lowest; to have the greatest impact over time.

There are 48 remaining Traffic Signals in the City without BBS. This project installed a total of fifteen (15) BBS devices leaving a balance of 33 signals to still retrofit. Based on current funding and average number of installations per project the City is on track to have all remaining traffic signals Visalia City Council Printed on 4/14/2023Page 1 of 4
powered by Legistar™
133
File #: 23-0105 Agenda Date: 4/17/2023 Agenda #: 4.
average number of installations per project the City is on track to have all remaining traffic signals equip with BBS within the next seven (7) years (based on biennial funding).

The Fire Department budgets money in the CIP to install preemption equipment at intersections to systematically install preemption equipment at each City owned traffic signal. The intersections were chosen based on fire department established priority and traffic volumes.

The EVP equipment at the traffic signals will allow Fire Department vehicles to use their preexisting on-board equipment to receive priority at signalized intersections. Priority signalization issues an all- red indication (red ball) to all approaching legs of the intersection except the roadway from which the Fire Department vehicle is approaching from. They receive a green ball allowing the vehicle to continue through the intersection. Consequently, emergency personnel will be able to respond to emergencies both safer and faster.

There are 45 existing traffic signals in the City without EVP system. This project installed a total of four (4) EVP systems leaving a remaining 41 to still retrofit. Based on current and average number of installations per project the City is on track to have all remaining traffic signals equip with EVP within the next eighteen (18) years.

Construction:

The start of construction began on March 7th, 2022; work began with the EVP installations. Following the EVP installations, the project was suspended pending delivery of the BBS hardware. The BBS equipment was delivered in early February of 2023 and the work for the BBS installation was completed in three (3) weeks. The project as a whole was completed in March of 2023. The installation of the BBS and EVP and other associated improvements were completed within the allotted construction working days.

The final total construction cost was $123,500 for BBS work and $81,254 for EVP improvements for a total of $204,754. The construction contract was awarded to Pelagic Engineering out of Oxnard, CA.

The original total and final contract amount was $204,754 the project had no construction change orders.

Fiscal Impact:

Battery Backup System & Traffic Signal Preemption Project (3010-72000/CP0226-999 & 3010- 72000/CP9531-999) contains two separate projects with different funding sources bundled together for cost efficiencies:

1. Battery Backup System Project (3010-72000/CP0226-999) a. Gas Tax (Fund 111)
b. Measure R Local (Fund 131)
The BBS project included the completion of the Base Bid and Alternate Bid Items 1-6 as shown in the attached map.

2. Traffic Signal Preemption Project (3010-72000/CP9531-999) a. General Fund (Fund 001)
b. Fire Impact Fee (Fund 106)
Visalia City Council Printed on 4/14/2023Page 2 of 4
powered by Legistar™
134
File #: 23-0105 Agenda Date: 4/17/2023 Agenda #: 4.

The EVP project include the completion of the Base Bid and Alternate Bid Items 1, 2, 3, and 4 also per the attached map.

The approved project budget is as follows:

BBS Construction Project CP0226
Funding Source
Gas Tax (Fund 111) $61,730
Measure R Local (Fund 131) $100,000
Total Project Funding $161,730
BBS Construction Project CP0226 - Project Costs
Construction (Staff time) $7,000
Construction Cost $123,500
No construction Change Orders $0
Construction Cost $130,500
Total Cost BBS Construction Project $130,500
Total Project Funding $161,730
Total Funding to be returned to funding source $31,230
EVP Construction Project CP9531
Funding Source
General Fund (Fund 001) $28,740
Fire Impact Fee (Fund 106) $93,720
Total Project Funding $122,460
EVP Construction Project CP9531 - Project Costs
Construction (Staff time) $3,000
Construction Cost $81,254
No construction Change Orders $0
Construction Cost $84,254
Total Cost EVP Construction Project $84,254
Total Funding $122,460
Total Funding to be returned to funding source $38,206
Both projects were completed within budget and schedule. All remaining unexpended funds will be unencumbered back to their originating fund sources.

Visalia City Council Printed on 4/14/2023Page 3 of 4
powered by Legistar™
135
File #: 23-0105 Agenda Date: 4/17/2023 Agenda #: 4.

Prior Council Action:

February 7, 2022
Authorized the City Manager to award the construction contract for RFB 21-22-04, Battery Backup System & Traffic Signal Preemption Project in the amount of $204,754 to Pelagic Engineering of Oxnard, CA (3010-72000/CP0226-999 & 3010-72000/CP9531-999).

Alternatives:

None Recommended
Recommended Motion (and Alternative Motions if expected):

I move to authorize the City Manager to file Notice of Completion for the Battery Backup System & Traffic Signal Preemption Project.

Environmental Assessment Status:

CEQA Review:

Categorical Exemption, Section 15301c, recorded May 25th, 2022 for the BBS & EVP projects.

Attachments:

1. Contractor Disclosure Form

2. Project Map
Visalia City Council Printed on 4/14/2023Page 4 of 4
powered by Legistar™
136
137
!
# #
# #
##
Hwy 198
W Myrtle Ave
W Murray Ave
W Center Ave
W Kaweah Ave
W Main St
S Giddings St
S Mooney Blvd
S Woodland St
W Goshen Ave
W Noble Ave
W Tulare Ave
N Court St
N Floral St
W Burrel Ave
N Willis St N Locust St
S Locust St
W Howard Ave
N Encina St
S Conyer St
S Divisadero St
W Laurel Ave
W Grove Ave
S Sowell St
S Watson St
W Mineral King Ave
S Encina St
W Beverly Dr
N Hall St
W Acequia Ave
S Redwood St
N Ranch St
W Campus Ave
W School Ave
W Feemster Ave
N West St
W Race Ave
W Green Acres Dr
N Park St
W Border Links Dr
W Meadow Ave
S Mountain St
Alley
S Oak Park St
W Iris Ave
W College Ave
N Fairway St
S West St
N Jacob St
S Willis St
S Jacob St
W Keogh Ave
S Grant St
S Court St
S County Center Dr
S Linda Vista St
N Giddings StW Hillsdale Ave
S Crowe St
NW 1st Ave
S Central St
W Sunset Dr
W Hyde Ave
N Rinaldi St
S Fairway St
N Conyer St
S Dollner St
W Club Dr
S Johnson St
N Leslie St
S Stevenson St
S Elm St
W Crescent Ave
W Sue Ave
S Valley St
S Shady St
W Linden Ave
S Bonnie St
N Turner St
N Lombard St
W Olive Ave
N Stevenson St
S Terri St
W Manor Dr
W Keogh Ct
W Oak Ave
N Dudley St
N Highland St
W College Ct
S Martin St
W Gist Ave
W Fairview Ct
S Clover St
S Edwards Ct
W Howard Ct
W Feemster Ct
W Laurel Ct
Alley
W Goshen Ave
W Myrtle Ave
Alley
Alley
Alley
S Dollner St
Alley
Alley
W Howard Ave
Alley
S Conyer St
S Stevenson St
W Iris Ave
W Laurel Ave
Alley
Alley
W Mineral King Ave
W Iris Ave
W Burrel Ave
W Iris Ave
Alley
Alley
S Willis StS Martin St
N Dudley St
S Central St
W Iris Ave
W Howard Ave
S Court St
S Johnson St
Alley Alley
Alley Alley
N Hall St
W Noble Ave
Alley
W Tulare Ave
Alley
S Dollner St Alley
Alley
Alley
N Jacob St
S Conyer St
S Court St
LEGEND
#
Base Bid#
Traffic Signal Preemption (Emergency Vehicle Preemption) Project Location ¯
05/14/20211 inch = 1,000 feet
Alternate Bid 3
Alternate Bid 1
Alternate Bid 4#
#
! Fire Station
Alternate Bid 2#
Base
Base
1 2
3 4

Page 1 of 2 ends

138
!
!
!
#
#
#
## #
#
#
#
#
#
#
#
#
#
# #
## # #
# #
W Walnut Ave
W Caldwell Ave
S Akers St W Tulare Ave
W Whitendale Ave
S Linwood St
S Demaree St
S Chinowth St
S Mooney Blvd
W Noble Ave
W Houston Ave
E Main St
S Giddings St
S Santa Fe St E K Ave
S Ben Maddox Way
E Tulare Ave
E Walnut Ave
W Goshen Ave
W Hurley Ave
E Caldwell Ave
N Akers St
S Woodland St
E Houston Ave
E Mineral King Ave
W Center Ave
W Main St
N Santa Fe St
Hwy 198
E Goshen Ave
E Noble Ave
W Mineral King Ave
N Burke St
W Campus Ave
N Chinowth St
S Court St
N Locust St
N Jacob St
S Locust St
S Burke St
S Conyer St
W Mill Creek Dr
N Demaree St
N Hall St
W Acequia Ave
N Willis St
NE 3rd Ave
N Cain St
N Mooney Blvd
S County Center Dr
NW 3rd Ave
N Court St
N County Center St
N Linwood St
S Cain St
N Divisadero St
W Goshen Ave
S Conyer St
S Santa Fe St
S Court St
W Tulare Ave
W Mineral King Ave
S Court St
N Demaree St
N Akers St
W Noble Ave
N Cain St
LEGEND
#
Alternate Bid 1-6#
Battery Backup System (BBS) Project Location
¯
05/14/20211 inch = 2,500 feet
Alternate Bid 12-14
Alternate Bid 7-11
#
# Base Bid
! Fire Station
1 Base
1412
Base
3 6
7 8
10 4 5
13 2
Base
9 11
Base
Base
Base Base
Base Base

Page 2 of 2 ends

Visalia City CouncilApril 17, 2023

Visalia City Council
April 17, 2023