The City has adopted a Reasonable Accommodations Policy that provides a procedure for receiving and resolving requests for accommodation to participate in this meeting. Please visit yubacity.net ADA & Accessibility Resources page. If you need assistance in order to attend the City Council meeting, or if you require auxiliary aids or services, e.g., hearing aids or signing services to make a presentation to the City Council, the City is happy to help. Accommodations should be requested as early as possible as additional time may be required in order to provide the requested accommodation; 72 hours in advance is suggested. Please contact City offices at (530) 822-4817 or (TTY: 530-822-4732), so such aids or services can be arranged. Requests may also be made by email at [email protected] or [email protected] or mail City Clerk, 1201 Civic Center Blvd, Yuba City, CA 95993.
AGENDA
AUGUST 20, 2024
REGULAR MEETING
CITY COUNCIL
CITY OF YUBA CITY
4:00 P.M. CLOSED SESSION
SUTTER ROOM/VIRTUAL
6:00 P.M. REGULAR MEETING
COUNCIL CHAMBERS/VIRTUAL
MAYOR ● Shon Harris
VICE MAYOR ● Dave Shaw
COUNCILMEMBER ● Marc Boomgaarden
COUNCILMEMBER ● Wade Kirchner
COUNCILMEMBER ● Michael Pasquale
CITY MANAGER ● Diana Langley
CITY ATTORNEY ● Shannon L. Chaffin
1201 Civic Center Blvd
Yuba City CA 95993
Wheelchair Accessible
AGENDA
REGULAR MEETING
CITY COUNCIL - CITY OF YUBA CITY
AUGUST 20, 2024
4:00 P.M. CLOSED SESSION
SUTTER ROOM/VIRTUAL
6:00 P.M. REGULAR MEETING
COUNCIL CHAMBERS/VIRTUAL
Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerk’s office at 1201 Civic Center Blvd., Yuba City, during normal business hours. Such documents are also available on the City of Yuba City’s website at www.yubacity.net, subject to staff’s availability to post the documents before the meeting.
The Council Chambers will be open for public attendance and participation. The meeting will also be live streamed for public viewing, but not participation, at the following link:
https://yubacity-net.zoom.us/webinar/register/WN_GbwmsUuARqWl-Zqoh3Ttmw. Emailed comments sent to [email protected] at least 24 hours before the meeting will be distributed to the City Council prior to the meeting. Please identify the Agenda item(s) addressed by the comments.
Public Comment:
Any member of the public wishing to address the City Council on any item listed on the closed session agenda will have an opportunity to present testimony to the City Council in the Council Chamber prior to the City Council convening into closed session. Comments from the public will be limited to three minutes. No member of the public will be allowed to be present once the City Council convenes into closed session.
Closed Session
A. Conference with Labor Negotiators (Pursuant to Government Code, Section 54957.6.) Agency designated representatives: Diana Langley, City Manager, Natalie Springer, Human Resources Director, Ann Gillen, Community Services Director, Spencer Morrison, Finance Director, Ben Moody, Public Works and Development Services Director, Brian Baker, Police Chief, Jesse Alexander, Fire Chief
Employee organizations: Yuba City Police Officers; Police Sergeants; Yuba City Firefighters Local 3793; Yuba City Fire Management; First Level Managers, Mid Managers, Police Sworn Mid Managers; and Public Employees Local No. 1
Unrepresented employees: Confidential Employees, Executive Services Employees
Regular Meeting
Call to Order
Roll Call
__ Mayor Harris
__ Vice Mayor Shaw
__ Councilmember Boomgaarden
__ Councilmember Kirchner
__ Councilmember Pasquale
Invocation/Inspiration
Pledge of Allegiance to the Flag
City Attorney's Report on Closed Session Items, City Attorney Shannon Chaffin Agenda Modifications
Ceremonial Presentations
1. Welcome of BAFB Installation and Wing Commander, Colonel Keagan L. McLeese
2. Retirement Proclamation - Sergeant Bill Williams
Public Communication
3. Appearance of Interested Citizens
You are welcome and encouraged to participate in this meeting. Public comment is taken on action items appearing on the Consent Calendar or Business Items on the Agenda when they are called. Public comment on any other items within the scope of the City’s jurisdiction, including items not listed on the Agenda will be considered at this time. Public comment is limited to three minutes per speaker. Members of the public submitting written requests at least 24 hours prior to the meeting will be allotted five minutes to comment per speaker. Repetitive comments may be limited, and large groups are encouraged to select representatives to express the opinions of the group.
Consent Calendar
All matters listed under Consent Calendar are considered to be routine and can be enacted in one motion. There will be no separate discussion of these items prior to the time that Council votes on the motion unless members of the City Council request specific items to be discussed or removed from the Consent Calendar for individual action.
4. Minutes of the July 16, 2024 Regular Meeting of the City Council Recommendation: Approve the Minutes of the July 16, 2024 Regular Meeting of the City Council
5. Transportation Development Act (TDA) Claim for FY 2023-2024 of $2,149,688 in Local Transportation Funds (LTF)
Recommendation: Adopt a Resolution authorizing submission of the City’s FY 2023- 2024 TDA claim to the Sacramento Area Council of
Governments (SACOG)
6. Designation of Voting Delegates for the League of California Cities Annual Conference in October 2024
Recommendation: Designate Mayor Shon Harris to serve as the Voting Delegate for the 2024 League of California Cities Annual Conference in
October 2024, and designate Vice Mayor Dave Shaw to serve as an alternate
7. Presentation of Investment Report - Quarter Ended June 30, 2024 Recommendation: Note & File Quarterly Investment Report
8. Corporation Yard Elevator Replacement - Contract Award Recommendation: Adopt a Resolution which takes the following actions:
A. Adopts a CEQA Class 1 Categorical Exemption
B. Awards a construction contract to TK Elevator in the amount of $144,850.00 through Sourcewell Contract No.
080420-TKE, with the finding that it is in the best interest of the City
C. Authorizes the City Manager to execute all necessary documents related to the Project
9. Consideration of an Amendment to the Staff Services Agreement between the City of Yuba City and the Sutter County Local Agency Formation Commission (Sutter LAFCO)
Recommendation: Authorize the Mayor to sign a First Amendment to the Staff Services Agreement between the City of Yuba City and Sutter LAFCO
10. WTP Alum Storage Tanks Replacement Project (Contract Award) Recommendation: Adopt a Resolution awarding a construction contract to Pacific River Construction of Roseville, CA in the amount of their total bid of $321,000.00 and authorizing the City Manager to execute the contract on behalf of the City, subject to review and approval as to legal form by the City Attorney
11. 2434 Butte House Road Extraterritorial Water Service Agreement Recommendation: Adopt a Resolution authorizing the City Manager to execute an extraterritorial service agreement with the property owner of 2434 Butte House Road, Rosa Elva Rojas Coss, for connection to City water service following approval as to legal form by the City Attorney
12. 2601 Railroad Avenue Extraterritorial Water Service Agreement Recommendation: Adopt a Resolution authorizing the City Manager to execute an extraterritorial service agreement with the property owner of 2601 Railroad Avenue, The Lonnie G. Edwards Revocable Living Trust Dated August 7, 2007, for connection to City water service following approval as to legal form by the City Attorney
13. Appointments to City of Yuba City Personnel Board
Recommendation: Approve the Mayor's Recommendation of one (1) Appointment and one (1) Reappointment to the Personnel Board
Business Items
14. Contract with Lincoln Financial Group and BPAS for 457(b) Deferred Compensation and Section 115 Trust Plans
Recommendation: Adopt a Resolution authorizing the City Manager to finalize and execute agreements with Lincoln Financial Group and BPAS to
administer the City’s 457(b) Deferred Compensation and Section 115 Trust Plans and other documents necessary for the
implementation of these plans; and finalize and execute 457(b) Deferred Compensation and Section 115 Trust Plan documents
15. Purchase of Four (4) Chevrolet Tahoe Pursuit Vehicles Recommendation: Adopt a Resolution which takes the following actions:
A. Awards the purchase of four (4) Chevrolet Tahoe Pursuit Vehicles to Winner Chevrolet, Inc., of Sacramento, CA, in the amount of $264,009.04
B. Authorizes the purchase and installation of equipment to Cop Shop Installations of Yuba City, CA, in the estimated amount of $101,729.90, with the finding that it is in the best interest of the City
C. Authorizes the purchase of four (4) APX 8500 all-band radios to Sutter Buttes Communication of Yuba City, CA, in the estimated amount of $38,890.36, with the finding that it is in the best interest of the City
16. Bogue Park Playground Replacement Project Award and Purchase Recommendation: Adopt a Resolution which takes the following actions:
A. Adopts a CEQA Class 2 Categorical Exemption
B. Awards a construction contract to BCI Burke Company in the amount of $81,140.61 through Sourcewell Contract
No. 010521-BUR, with the finding that it is in the best interest of the City
C. Authorizes the City Manager to execute all necessary documents related to the project
17. Harter Parkway Corridor Improvement Project (Contract Award) Recommendation: Adopt a Resolution with the following actions:
A. Awards a construction contract to JPB Designs, of
Orangevale, CA in the amount of their total bid of
$1,300,860.00 and authorizes the City Manager to
execute the contract on behalf of the City, subject to
review and approval as to legal form by the City Attorney B. Authorizes the Finance Director to make necessary
budget adjustments and supplemental appropriations
C. Adopts a CEQA Class 1 categorical exemption
18. Sutter Bike Path Gap Closure (Plans and Specifications) Recommendation: Adopt a Resolution adopting a CEQA Class 4 Categorical Exemption, approving the plans and specifications and
authorizing advertisement for bids for the Sutter Bike Path Gap Closure Project
19. Citywide Signal Hardware Upgrades (Plans & Specifications) Recommendation: Adopt a Resolution adopting a CEQA Class 1 Categorical
Exemption, approving the plans and specifications, and
authorizing advertisement for bids for the Citywide Signal Hardware Upgrades Project (24-09)
20. Medical Priority Dispatch System
Recommendation: Adopt a Resolution awarding the purchase of a Medical Priority Dispatch System, ProQA, to Priority Dispatch of Salt Lake City, UT, in the amount of $113,102, with the finding that it is in the best interest of the City
21. 2024 Nagar Kirtan Sikh Parade
Recommendation: Receive an update from the Sikh Parade Ad Hoc Committee on the planning efforts for the 2024 Nagar Kirtan Sikh Parade Future Agenda Items
22. Future Agenda Items
Reports and Communications
The following reports and communication items are provided for the Council’s information. No action can be taken on items under this section unless the Council agrees to include it on a subsequent agenda
23. City Manager's Report
24. City Council Reports
Adjournment
Beale Air Force Base
Installation Commander and
9th Reconnaissance Wing Commander
Colonel Keagan L. McLeese
Welcome
Proclamation
of the City Council
POLICE SERGEANT BILL WILLIAMS
In Recognition of your retirement
from the Yuba City Police Department
WHEREAS, Bill Williams began his law enforcement career in 1997 with the Santa Rosa Police Department, and was hired as a Police Officer by the City of Yuba City on December 17, 2003; and WHEREAS, he has held the positions of Police Officer, Patrol Sergeant, and Traffic Sergeant, with lateral assignments as a Motor Officer, SWAT team operator, School Resource Officer, Rangemaster, Chaplain Liaison, and Wellness Program Coordinator; and
WHEREAS, he has been recognized with numerous awards and commendations for his exemplary professional performance including letters of appreciation from the public, peers and supervisors; and WHEREAS, Sergeant Williams has served as an example of a true servant leader, and a team player in his capacity as an employee of the City of Yuba City. Bill has received three Chief’s Unit of the Year Awards, two Police Achievement Awards, five Police Fitness Awards, two Police Unit Commendations, the Police Individual Commendation Award, the Police Commendation Medal and the Department’s Spirit Award; and
WHEREAS, Bill Williams also served our country in the United States Air Force, active duty from January 1993 to December 1996, and as a Reserve from 1997 to 2018. He returned to active duty for over a year, due to 9/11, serving in Iraq during Operation Enduring Freedom; and WHEREAS, Sergeant Williams took an oath to, “Preserve, Protect and Defend the Constitution,” an oath he never broke; and
WHEREAS, Sergeant Williams kept faith with the public he so honorably served for more than 25 years.
NOW, THEREFORE, BE IT RESOLVED, that I, Shon Harris, Mayor of the City of Yuba City, on behalf of the entire Council and citizens we serve, do hereby thank Sergeant Bill Williams for his service both military and civilian and congratulate him on the occasion of his honorable retirement from the law enforcement service. We wish Sergeant Williams, the very best in his future.
Done on this 20th day of August 2024 at the City of Yuba City, County of Sutter, State of California
CITY OF YUBA CITY
Public Communication
Members of the public may address the City Council on items of interest that are within the City’s jurisdiction. Individuals addressing general comments are encouraged to limit their statements.
Procedure
You are welcome and encouraged to participate in this meeting. Complete a Speaker Card located in the lobby and give to the Clerk, public comment is taken on action items appearing on the Consent Calendar or Business Items on the Agenda when they are called. Public comment on any other items within the scope of the City’s jurisdiction, including items not listed on the Agenda, will be considered at this time.
When a matter is announced, wait to be recognized by the Mayor to provide your comments to the Council. Comments should begin by providing your name and place of residence. A three minute limit is requested when addressing Council.
Request for additional time to address Council
Members of the public submitting written requests at least 24 hours prior to the meeting will be allotted 5 minutes to comment per speaker. Repetitive comments may be limited, and large groups are encouraged to select representatives to express the opinions of the group.
Procedure
When requesting to comment, please indicate your name and the topic and mail to:
City of Yuba City
Attn: City Clerk
1201 Civic Center Blvd
Yuba City CA 95993
Or email to:
Jackie Sillman, City Clerk
[email protected]
Agenda Item 4
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Administration Department
Presentation By: Ciara Wakefield, City Clerk Administrator Summary
Subject: Minutes of the July 16, 2024 Regular Meeting of the City Council Recommendation: Approve the Minutes of the July 16, 2024 Regular Meeting of the City Council Fiscal Impact: None
Attachments:
1. 07-16-2024 Regular Meeting Minutes (DRAFT)
Prepared By: Submitted By:
Ciara Wakefield
City Clerk Administrator
Diana Langley
City Manager
ATTACHMENT 1
MINUTES
REGULAR MEETING
CITY COUNCIL - CITY OF YUBA CITY
JULY 16, 2024
6:00 P.M. REGULAR MEETING
COUNCIL CHAMBERS/VIRTUAL
Regular Meeting
The Regular Meeting of the City Council was called to order by Mayor Harris at 6:00 PM Roll Call
Present: Mayor Harris and Councilmembers Boomgaarden, Kirchner, Shaw, and Pasquale
Absent: None
Invocation/Inspiration
Jonathan Orosco of Legacy Baptist Church
Pledge of Allegiance to the Flag
Mayor Shon Harris
Agenda Modifications
Item 8 - Staff prepared a revised Resolution which was provided to the Council. Copies were made available for the public in the lobby
Ceremonial Presentations
1. Downtown Business Association Summer Stroll Presentation Sandee Drown & Teresa Schmidt from the Downtown Business Association (DBA) gave a presentation
2. Proclamation Recognizing Parks and Recreation Month
Mayor Harris presented a proclamation to Ann Gillen, Director of Community Services and Parks & Recreation staff
Public Communication
3. Appearance of Interested Citizens
Liz Cervantes spoke
Stephanie Ruscigno spoke
Consent Calendar
Councilmember Boomgaarden moved and Vice-Mayor Shaw seconded the motion to approve Consent Calendar items 4-5
4. Minutes from the July 2, 2024 Regular Meeting of the Successor Agency to the Redevelopment Agency and City Council
Approve the minutes of the July 2, 2024 Regular Meeting of the Successor Agency to the Redevelopment Agency and City Council
5. 2023 Ford F-550 - Capital Acquisition
Adopt Resolution 24-098 authorizing Finance Director to record a supplemental appropriation of $5,000 to account 6610-69410 for the additional cost to purchase a Ford F- 550 Regular Cab or equivalent for the Parks Department
Business Items
[Councilmember Kirchner recused himself]
6. Richland Waterline Extension Project (Contract Award) Councilmember Pasquale moved and Vice-Mayor Shaw seconded the motion to:
Adopt Resolution 24-099 taking the following actions:
A. Accepts the bid withdrawal of the apparent low bidder, Newland Entities, Inc. of Yuba City, without forfeiting its bid security on the basis that documentation complying with Section 5103 of the California Public Contract Code has been provided affirming that a material and clerical error was made in assembling the bid
B. Awards a construction contract to LaFleur Engineering, Inc of Roseville, CA in the amount of their total bid of $1,314,417.00 and authorizes the City Manager to execute the contract on behalf of the City, subject to review and approval as to legal form by the City Attorney
The motion was passed with 4 votes [Kirchner recused]
7. Consideration of Inclusion of Delinquent Charges and Penalties for Water and Wastewater Services on Secured Tax Roll
Mayor Harris opened a Public Hearing
Stephanie Ruscigno spoke
Liz Cervantes spoke
Mayor Harris closed the Public Hearing
Councilmember Kirchner moved and Councilmember Pasquale seconded the motion to:
Adopt Resolution 24-100 for the inclusion of delinquent charges and penalties for water and wastewater services on the secured tax roll in the same manner as the
general taxes and directing that a lien also be placed on the subject properties The motion was passed unanimously
8. Consideration of Inclusion of Code Enforcement Citation Fines on Secured Tax Roll
Mayor Harris opened a Public Hearing
No public comment
Mayor Harris closed the Public Hearing
Councilmember Kirchner moved and Vice-Mayor Shaw seconded the motion to:
Adopt Resolution 24-101 for the inclusion of unpaid Code Enforcement citation fines on the secured tax roll in the same manner as the general taxes and directing that a lien also be placed on the subject properties
The motion was passed unanimously
9. Consideration of November 2024 Ballot Measure to Authorize One-Cent Sales Tax
Lawrence Mertz spoke
Ed Diminick spoke
Liz Cervantes spoke
Stephanie Ruscigno spoke
Debra Desrosiers spoke
Councilmember Boomgaarden moved and Vice-Mayor Shaw seconded the motion to:
Adopt Resolution 24-102 calling for the placement of a general tax measure on the ballot for the November 5, 2024, general municipal election for the submission to the voters of an ordinance to enact a general transaction and use tax (sales tax) at the rate of one percent
The motion was passed unanimously
Future Agenda Items
10. Future Agenda Items
No suggestions were made
Reports and Communications
11. City Manager's Report
12. City Council Reports
- Councilmember Boomgaarden
- Councilmember Kirchner
- Councilmember Pasquale
- Vice Mayor Shaw
- Mayor Harris
Adjournment
Mayor Harris adjourned the Regular Meeting of the City Council at 7:48 PM _____________________________
Shon Harris, Mayor
ATTEST:
____________________________
Ciara Wakefield, Deputy City Clerk
Agenda Item 5
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Finance/IT Department
Presentation By: Diona Pope, Accounting Manager
Summary
Subject: Transportation Development Act (TDA) Claim for FY 2023-2024 of $2,149,688 in Local Transportation Funds (LTF)
Recommendation: Adopt a Resolution authorizing submission of the City’s FY 2023-2024 TDA claim to the Sacramento Area Council of Governments (SACOG) Fiscal Impact: $2,021,127 in revenue will be received by the City for TDA Fund projects on Yuba City Streets as approved in the FY 2023-2024 CIP Budget Purpose:
To secure funding to be used for road repair and maintenance.
Council's Strategic Goal:
This staff report addresses the City Council’s Strategic Goal of fiscal responsibility.
Background:
The City Council is requested to approve the following allocation of the City’s fiscal year Local Transportation Fund (LTF) revenues as indicated below:
Projects completed in recent years include:
• Striping and marking; and
• Drainage and traffic signal improvements; and
• Road rehabilitation at various locations
1. Yuba City Finding of Apportionment $4,285,374
2. Less: Sacramento Area Council of Governments (SACOG) 128,561
3. Less: Yuba-Sutter Transit Authority (YSTA) 2,135,686 Total $2,021,127
Analysis:
The Sales Tax rate in Sutter County is currently 7.25%. Of this rate, 0.25% is collected by the State of
California and allocated back to each city and county (based on population) for local transportation services and projects. The City of Yuba City’s share of these funds for FY 2023-2024 totals $4,285,374, a decrease of 22.97% from the apportionment of $5,563,030 for FY 2022-2023. Of this amount, YSTA is apportioned a share (in accordance with our Joint Powers Agreement), SACOG receives a portion for planning costs, and the remainder is placed in the City’s TDA project fund (305).
YSTA will use their portion, $2,135,686, to provide community-wide transit services. The YSTA portion has increased 1.59% from last year, and has increased an average of 9% per year over a five-year period, FY 2019-2020 through FY 2023-2024.
The following chart illustrates five years of the City’s and YSTA’s shares of TDA (LTF) claims:
The local share of TDA revenue distribution considers county June 30th LTF balance estimates and must be trued-up for the differential between the estimation and actual in the following year.
Per Michael Rosson from SACOG, the 58.69% apportionment increase from FY 2021-2022 to FY 2022-2023 is due to:
• higher State LTF Fund Balance as of 6/30/21; and
• higher State sales tax revenue projection for FY 2022-2023 Fiscal Impact:
$2,021,127 in revenue will be received by the City for TDA Fund projects on Yuba City streets as approved in the FY 2023-2024 CIP Budget.
Alternatives:
• City Council may determine that LTF revenue is not needed and forego the City’s claim. • City Council may use its seat at YSTA to help identify further unmet transportation needs, which would reduce or eliminate the City’s LTF revenue claim.
Recommendation:
Adopt a Resolution authorizing submission of the City’s FY 2023-2024 TDA claim to the Sacramento
Area Council of Governments (SACOG).
Attachments:
1. TDA Claim Reso FY 24-25 (Final)
2. 23-24 TDA Claim Form
Prepared By: Submitted By:
Diona Pope
Accounting Manager
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO. 24-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY AUTHORIZING SUBMISSION OF THE FY 2024-2025
TRANSPORTATION DEVELOPMENT ACT CLAIM TO THE
SACRAMENTO AREA COUNCIL OF GOVERNMENTS
WHEREAS, the State of California enacted the Transportation Development Act (TDA) in 1972 to provide funds for transportation needs each fiscal year; and WHEREAS, the Sacramento Area Council of Governments (SACOG) is designated as the Transportation Planning Agency for the City of Yuba City to receive claims for approval pursuant to TDA rules and regulations; and
WHEREAS, SACOG has adopted funding of apportionment for the Local Transportation Funds for Fiscal Year 2023-2024; and
WHEREAS, after transportation needs have been met, any unused funds may be used for street and road improvements.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Yuba City hereby approve and forward to SACOG the attached Fiscal Year 2023-2024 TDA claims, and that the Finance Director is hereby authorized to make the necessary budget amendments, transfers, accounting entries, etc. to carry out the Council’s policies and directives related to this matter.
The foregoing Resolution was duly and regularly introduced, passed, and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on the 20TH day of August, 2024.
AYES:
NOES:
ABSENT:
_____________________________
Shon Harris, Mayor
ATTEST:
______________________________
Ciara Wakefield, Deputy City Clerk
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY
_______________________________
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
! "
#$%%
&'"( !
!
" #
$
%&&
& '()
" *
$ $
+),-./ 012 3452460 0047819 6 :531 ; '()<= ) % '$ * $
(>
*" ,
" )
" ? @A) ; '()<B $
C & DE* &
%$ F
$
G$
" & *$
$
G$H )
" ? @A) ; '()<I +%
$>
%G )**$
>& $
C )
" ? @A) ; '()<J +"
,
$" )
" ? @A) ; '()<K '() ,
" ,$
)
" ? @A) ; L
%
#G
>$
#
&G %
$
M&
" )
" ? @A) NO PQRSTRUV SW R XYRUWSV Z[\U]^ _Y `aYSWbS]VS_U SW P_UVYR]VSU[ O_Y XYRUWSV c\YdS]\ ; ,e +G , "*
L*
$ F,
"*&
* =I "
H ,
"
$ $
$>
? ?
; )&
*&
$ *$
*
& #%&
$
G$
" ,
"
$ $
$>
? ? ; +
&
*G
$
$>
$ ,
"
$ $
$>
? ? ; )$
& $ $ $" ! $
%
,
"
$< G" $ $ ? ? ; f
$"
#
#
G % &$
G $
$
g +') -*$
$ h%
G
,$
$
%
#&
+
iiI=J/j ,
"
$ $> %<#& +') % & ? ? ; ,$
"
,*
f"*$
>" $
$" ,
"
$ #
A*&
? ? ; ,
"*
k, +/ ii=KK l ii=KK/K ,
"
$ $
$>
? ? ; ,
*G
' m$ ,*
l -*$
$
$" ,
"
$ $
$>
? ? Page 22 of 496
!"
#$
%
& '(')*
+ !
,--
+
.)/'(
012 "!
33&& !
45!6
3
7&
78 9!" 8:
%"!
8:4; &
&+!
3<!
8
8 !
4=
3 3
8 &6
!
>%"
6
366"!:" "&3= "
!
&3
6 3:4
8
!"
#$
%
&?
$@+
8
!
&; &
#
# 3!=: 66
%3&#
""
<& A?0BCCCCD@
?0B D@ ?0BCCCCD@ ?0B D@ CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC?0B D E F?0B D@ ?0B D@ ?6!#4 3D
E$1@
:!
3G4CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC ! " > $
City of Yuba City
1201 Civic Center Blvd
Yuba City 95993
530-822-4615
Spencer Morrison
[email protected]
23 24
Spencer Morrison
Finance Director
!
"#
$
$
% &'( )&* &'( +&( &'( +&(, +-. &/01234 *0/52 65027/5 ( .809 *719 '5:5;8<5/ *552=>8124? &0@ *595/0;= +4045 A4B5/
+(>A-C;01131D
E$FF
F FFFFFFF
128,561
! "
#"$$%
#"$& "'
($")%
* "+"&
%
* #
)% ,
& "-.!!" $$", / 0 $+
!
% "1"+"%"$%
* (%%
, +")
!
$+! "% # +'
($")"%%
, + &2(345 0 67% + !
$+
+" 8
* "!
$+ ! 93
)%$ 9
9(, 9 :"$ ; " 8
* '$ ()
(%%
, + 67% + 8
* 2"
<<
2016-17
2015-16
2018-19
2019-20
2021-22
Complete
Complete
Complete
Complete
Complete
Active
$1,540,935
1,647,686
957,774
1,592,279
1,686,643
1,278,076
$1,540,935
1,647,686
957,774
1,592,279
1,686,643
1,732,795
3,293,869
1,278,076 Complete
13,730,057
2017-18
2020-21
2022-23
9,967,744
!" #$"
%&
#"#!#'
())#
)&
##"$
!#!"*
&
&
%
#)#
&!&
!"
!#"
'
"
!#))#
! %
!+, #"&
!"
)- +.,/- +0,!"
-11111111111111111111111+0023,)!! )- ")
&
4#
")&
!"
!#"
'
"
!" !
#
!
!"
$ !#"*
+0
!
&
") ##"$)
")!"
4#
",
5 #)#
%5&#
)#"!"
#! ())#
#
!
! " #! $%
""&"
& '( #(
# "
)!
!#!*+()
"!
&,")-./0&!
1
2" -3
"!
441-"!"
&!
$)
&&
#
(
%!" !))!5
+6
7 8,
""
#$(#+"! 2 !2!&#$(#+"! 9-:;-:< 7$8
"
"!
$%"/2
"=
"!"
)!
>+5
%?
" !)0 %
+"
"&
!=2)
5"3
"!
.@:@<.!"A
)!#
& '( #
?($)
B")"&!#3
"!
CC-D.< 7
8,&"=
"#
=!(
"!=
E=(=)+$)"%! =!
%& !=")!
)"
&2! "
"!
(
#
#"&"
"
&&&"
(
#
&#
#
3
"!
441F&GHHHHHHHHHHHHHHHHH<
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH 73+
"( 8
)
7I+
%J
=8
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH 7/
"8
!"#$%&'&#()&*+ ,-.(&%/0112345678229283:5;<0=>?8@:3A3564B5C359828D@365C7B822714B867B53A6E4 B4F37AGH36E6E44I941637A7C6E4<89B8:4A67J4F37A82KB8A536L356B396M -**.$ N+#%O %%O#+, &P N%O **.QP&%%#(
* %&*' +%R$!&N(#S#N(#N%'&*+ , .(&%TU&%O$#V.&$#(+#$%&'&+ %&RNT%RW-"XY N(%R%O#W% %#"RN%$R,,#$NR%PR$#%O N
( !* '%#$%O##N(R'%O#S$&R$'&*+ ,!# $ZW#+%&RN*[[\]^ N(___]` \[
!-NN. ,W% %#"RN%$R,,#$a#SR$%Z0112345678226B8A5369283:5Mb-**.$ N+#%O %+, &P N%O **.QP&%%#(%O&* $#SR$%%R%O#W% %#"RN%$R,,#$&N+RN'R$P N+#U&%O%O#.N&'R$P*!*%#PR' ++R.N%* N($#+R$(NR%PR$#%O N[ ( !*
'%#$%O##N(R'%O#S$&R$'&*+ ,!# $Z
( !*'R$#,#+%$RN&+ ,,!*.QP&**&RN*ZW#+%&RN[[\]c`", &P N%*OR.,( ,*R *.SS,! +RS!R'%O#W% %#"RN%$R,,#$$#SR$%ZW"a%RW-"XYNRPR$#%O N\ ( !* '%#$%O##N(R'%O#S$&R$'&*+ ,
!# $`
cd*#R')#(#$ ,).N(*Z0112345678220B63924e9283:5Mb
f", &P N%'&,&Ng +, &P'R$h -'.N(*'R$+ S&% ,&N%#N*&i#S$Rj#+%*S.$*. N%%RW#+%&RN[[\_ `k+#$%&'&#*%O %&*
O *P (##i#$!#''R$%%RRQ% &N'#(#$ ,'.N(&Ng'R$ N!S$Rj#+%UO&+O&*'.N(#(S.$*. N%%RW#+%&RN[[\_ `k`
f", &P N%V. ,&'!&Ng'R$'.N(*S.$*. N%%RW#+%&RN[[\_
` N(%&,&Ng +, &P'R$h -'.N(*&N#l+#**R'%O#
PR.N% ,,RU#(Q!W#+%&RN[[\_
+#$%&'&#*%O %*.+O'.N(* $#$#V.&$#(&NR$(#$%RRQ% &NP l&P.P'#(#$ , RS#$ %&Ng'.N(*&N%O#!# $*.+O'.N(* $#+, &P#(S.$*. N%%RW#+%&RN__cc`` ]m,(#$,!n &* Q,#(Z0112345678226B8A5369283:5bhO %%O#%$ N*&%RS#$ %R$&*V.#*%&RN&*&N+RPS,& N+#U&%OW#+%&RN [[^^S#$% &N&Ng%R$#(.+#(%$ N*&%' $#*'R$#,(#$,! N((&* Q,#(S#$*RN* N(W#+%&RN[[^^`^S#$% &N&Ng%R(& ,
$&(# N(S $ %$ N*&%*#$i&+#*`
^) $#QRla#+Ri#$!a %&Ra#V.&$#P#N%*Z0112345678226B8A5369283:5b", &P N%'&,&Ng +, &P'R$oh)R$Wh- '.N(*+#$%&'&#*%O %&%U&,,P &N% &N'R$%O#S$Rj#+%%O %$ %&RR'' $#$#i#N.#* N(,R+ ,*.SSR$%%RRS#$ %&Ng+R*% $#V.&$#(.N(#$W#+%&RN*[[\_
Z&N+,.(&Ng ,,*.QS $%*T[[\k
`T[[\k
`\T[[\k
`_pqrstrsuvwxuyzqvu{|}
a#V.&$#P#N%*'R$d$Q N&~#( N(RN
v{qrusuv
uqs|wus{wxu|qvs|vu
w|v|rqv
xp
[
\TUO&+O#i#$&* SS$RS$& %#`
ml+#S%&RN*
_^
mlS#N(&%.$#o&P&% %&RNZ01123457A2679283:5C7BKb", &P N%+#$%&'&#*%O %&%U *&N+RPS,& N+#U&%O W#+%&RN[[\_
+#$%&'!&Ng%O %&%Z%O#+, &PU&,,NR%#l+##(^
R'%O# PR.N%$#V.&$#(%RP##%RS#$ %&NgT
P &N%#N N+#T+ S&% , N((#Q%*#$i&+#+R*%*R'%O#%$ N*&%*!*%#P '%#$(#(.+%&RNR' SS$Ri#('#(#$ ,g$ N%* N(Wh- '.N(*#*%&P %#(%RQ#$#+#&i#('R$%O#*!*%#P`Z-+, &P N%+ N$#+#&i#(.S%R
R'+ S&% ,+R*%*'R$g$ (#
*#S $ %#(P **%$ N*&%S$Rj#+%*.N(#$W#+%&RN[[\_
N([[\
T'R$+ S&% ,&N%#N*&i#%$ N*&%
$#, %#(S$Rj#+%*.N(#$
W#+%&RN[[\_
`k` N('R$#l%#N*&RNR'*#$i&+#*.N(#$W#+%&RN__[` N(__cc`
kml%#N*&RNR'W#$i&+#*Z01123457A267K9283:5
", &P N%UOR$#+#&i#( N ,,R+ %&RNR'oh)'.N(*'R$#l%#N*&RN
R'*#$i&+#S.$*. N%%RW#+%&RN[[\_
`
+#$%&'&#*%O %&%U&,,'&,# $#SR$%R'%O#*#*#$i&+#*S.$*. N%%RW#+%&RN__cc` ZQ
U&%O&N[
( !* '%#$+,R*#R'%O#'&*+ ,!# $&NUO&+O%O % ,,R+ %&RNU *g$ N%#(`
a#%&$#P#N%W!*%#PZ01123457A267K9283:5
", &P N%+#$%&'&#*%O %Z%O#+.$$#N%+R*%R'&%*$#%&$#P#N%*!*%#P &*'.,,!'.N(#(U&%O$#*S#+%%R%O#R''&+#$* N(#PS,R!##*R'&%*S.Q,&+%$ N*SR$% %&RN*!*%#PR$Z\%O#RS#$ %R$ &*&PS,#P#N%&Ng S, N SS$Ri#(Q!W-"XYUO&+OU&,,'.,,!'&N(%O#$#%&$#P#N%*!*%#P'R$*.+OR''&+#$* N(
!
!"
#$
%
&'
(
)*++,-./01,230456758.1309.:-015,;751/-3<-/37-634;*6,5-8=> '
?
$
&'
(
"
@A
B'
C)*++,-./01,2306,5-8/D074;*=>E
F
G@ !
?
B
?
?
"E
B
F
G@ !
H
H
?
$
?
?
B
?
"
@@E
#
I?
'
A
)*++,-./01,2306,5-8/D074;*=>E
$
I
?'
A
$
#
I?
'
A
"
@ (%
((
)*++,-./01,2304;*6,5-8/=>E
J
?
%
#'
K
@ L
"
@M
A
M
)*++,-./01,2304;*6,5-8/=>E
"
Agenda Item 6
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Administration Department
Presentation By: Diana Langley, City Manager
Summary
Subject: Designation of Voting Delegates for the League of California Cities Annual Conference in October 2024
Recommendation: Designate Mayor Shon Harris to serve as the Voting Delegate for the 2024 League of California Cities Annual Conference in October 2024, and designate Vice Mayor Dave Shaw to serve as an alternate
Fiscal Impact: Account No. 1110-62801 - $5,700 (3 Councilmembers @ $1,900 each) Purpose:
To ensure that Yuba City has a voice regarding policy direction at the 2024 League of California Cities (LOCC) Annual Conference.
Council's Strategic Goal:
The LOCC Conference offers multiple sessions over the three-day conference that address a variety of topics. Participating Councilmembers may select sessions that align and advance Council's goals.
Background:
The LOCC Annual Conference is being held October 16-18, in Long Beach, California. An important part of the Annual Conference is the Annual Business Meeting, scheduled for Friday, October 18. At this meeting, the LOCC membership considers and takes action on resolutions that establish LOCC policy.
Analysis:
In order to vote at the Annual Business Meeting, the City Council must designate a voting delegate. An alternate voting delegate may also be appointed. The LOCC's bylaws state that designating a voting delegate and alternate must be done by City Council action and cannot be accomplished by the individual action of the Mayor or City Manager. The names of the voting delegate and alternate must be submitted to the LOCC by September 25.
Fiscal Impact:
The registration fee for the LOCC Annual Conference is $700 per attendee, plus there are costs associated with airfare, hotel, and meals, estimated at approximately $1,200, for a total estimated cost of $1,900 per Councilmember. Funds were included in the FY 24/25 budget for all five Councilmembers to attend, though only three have registered at this time.
Alternatives:
Designate another Councilmember as the Voting Delegate or alternate.
Recommendation:
Designate Mayor Shon Harris to serve as the Voting Delegate for the 2024 League of California Cities Annual Conference in October 2024, and designate Vice Mayor Dave Shaw to serve as an alternate.
Attachments:
1. Attachment 1 - LOCC Annual Conference Voting Delegate Packet - Oct 2024 Prepared By: Submitted By:
Diana Langley
City Manager
Diana Langley
City Manager
ATTACHMENT 1
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org
DATE: Wednesday, July 10, 2024
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 16-18, 2024 Long Beach Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.
Taking place on Oct. 18, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.
To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.
Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.
Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 25. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.
Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.
Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.
Council Action Advised by September 25, 2024
For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.
Please view Cal Cities’ event and meeting policy in advance of the conference.
Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.
Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.
The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 16, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 17, 7:30 a.m.-4:00 p.m. On Friday, Oct. 18, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.
The voting procedures that will be used at the conference are attached to this memo.
Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.
Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 25. If you have questions, please contact Zach Seals at [email protected].
Attachments:
• General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines
1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.
2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.
3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.
4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.
5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.
6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.
7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.
Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.
How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.
The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.
The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.
Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.
Recommendations are forwarded
to the Resolutions Committee.
Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.
Voting delegates
are appointed by each
member city; every city
has one voting delegate.
The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.
Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.
Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.
During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.
Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.
For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.
General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).
Agenda Item 7
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Finance/IT Department
Presentation By: Spencer Morrison, Finance Director
Summary
Subject: Presentation of Investment Report - Quarter Ended June 30, 2024 Recommendation: Note & File Quarterly Investment Report Fiscal Impact: Informational Item Only
Purpose:
To provide information regarding the investment and performance of City funds.
Council's Strategic Goal:
This staff report addresses the City Council’s Strategic Goal of fiscal responsibility.
Background:
In accordance with the City’s adopted Investment Policies, staff prepared the attached investment report for City Council review for the previous quarter (April, May, and June 2024).
Analysis:
Portfolio Highlights:
• As of June 30, 2024, the City's overall investment portfolio (estimated market value) totaled $161,459,570, an increase of $6,235,496 from the previous quarter. • Notable transactions during the quarter that affected cash flow included:
o Property tax remittance, assessments, and CSA-G revenue, $9.6 million o SBFCA expenses $1.0 million; revenue and assessments, $2.7 million; o Sales tax receipts, $4.1 million;
• The portfolio shows a “paper loss” of $539,164 as of June 30th. This represents the amount of value that the City would lose if it were to liquidate its entire portfolio at the end of the reporting period. However, such losses will not be realized if the investments are held until maturity
(which is the City’s general investment strategy).
• The City’s portfolio is still replacing lower yield instruments with higher yields for each maturing bond in this fixed income market, and the overall portfolio yield increased compared to past quarters. The portfolio remains positioned for a higher yield environment by keeping the maturity dates of our purchases in a longer position, currently 1.52 weighted average years to maturity, while remaining watchful for signs of an economic shift. For the quarter ended 6/30/24, 50 investments matured or sold, partially or whole, with an average yield of 1.07%.
Excluding asset-backed security pay-downs, seven investments matured or sold with an average yield of 1.22%. These funds, along with LAIF holdings, were invested in eight instruments with an average yield of 4.67%. The Weighted Average Yield to Maturity of the City’s total investment portfolio increased from 3.83% to 4.09% for the quarter. • The City’s cash flow needs will be met by roughly $70.9 million in liquid assets as of June 30th (approximately 44.8% of the City Held Investments portfolio value) that is currently invested in LAIF, CAMP, First American money management funds, and in the City’s Wells Fargo checking account.
Outlook: The City’s portfolio has enjoyed robust bond yields for several quarters to help offset the inflated cost of goods and services. The Fed will likely cut rates at least once before the end of the calendar year, and we expect the Fed to keep trying to force inflation down to 2%, bringing bond yields down with it. Expect to see the portfolio remain in a longer position in the foreseeable future to benefit from higher treasury bond yields.
Summary Overview: The City’s investment portfolio remains safe and stable. Each investment complies with state law and the City’s formal Investment Policies. Our three primary objectives for the City’s portfolio are safety, liquidity, and yield in order of importance. Staff continue to conservatively look for opportunities in today’s marketplace while remaining focused on our primary objectives.
Fiscal Impact:
Informational item only
Recommendation:
Note and file the Quarterly Investment Report for the period ending June 30, 2024.
Attachments:
1. 4Q24 Investment Report
Prepared By: Submitted By:
Spencer Morrison
City Treasurer
Spencer Morrison
City Treasurer
ATTACHMENT 1
City of Yuba City
Treasurer’s Quarterly
Investment Report
AS PRESCRIBED BY CALIFORNIA GOVERNMENT CODE SECTION 53646 June 30, 2024
City of Yuba City – Month-By-Month Comparison Report
June 30, 2024
The following table provides a comparison of the portfolio for the quarter ending December, and the previous quarters ended April, May, and June 2024.
Portfolio Comparison
9/30/23 12/31/23 3/31/24 6/30/24
Cost Basis $151,626,311 $146,021,344 $156,296,899 $161,998,734 Estimated Market Value 148,653,751 145,100,309 155,224,074 161,459,570 Unrealized Gains/(Losses) (1) (2,972,560) (921,034) (1,072,825) (539,164) Liquidity 45.14% 42.52% 42.93% 44.83%
Weighted Average Years:
Maturity of City Held Funds 1.19 years 1.20 years 1.24 years 1.52 years LAIF Interest Rate 3.534% 4.000% 4.300% 4.550%
CAMP Interest Rate 5.24% 5.550% 5.480% 5.430%
Portfolio: Weighted Average Yield
to Maturity at Market 3.31% 3.62% 3.83% 4.09%
CPI (Annualized) 3.7% 3.4% 3.5% 3.0%
Note: (1) This represents the amount of money that the City would gain (or lose) if it were to liquidate its entire portfolio at the end of the reporting period. However, such gains (or losses) will not be realized if the investments are held until maturity (which is the City’s historical investment strategy).
City of Yuba City – Quarterly Investment Report
June 30, 2024
Federal Home Loan Bank
2.40%
Federal Natl Mtg Assn
0.90% Federal Farm Credit Bank
3.02%
Federal Home Loan
Mortgage Corp
0.62%
US Treasury Notes
32.72%
City Held Assessment
Districts/Munis
Corporate Bonds & Asset- 1.22%
Backed Sec.
13.11%
California Asset Mgmt Program
17.22%
Local Agency Investment
Fund
23.19%
Certificates of Deposit
0.66%
Cash/Money Market
4.42%
Supranationals
0.52%
Composition of City Held Investments
City of Yuba City – Quarterly Investment Report
June 30, 2024
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
In Millions
City Held Investment Portfolio Maturity Distribution
Cash Equiv 0-6 Months 6-12 Months 1-3 Years 3+ Years
44.8%
13.0%
5.3%
27.7%
9.2%
City of Yuba City
Monthly Investment Statement
City Held Investments
CUSIP Maturity Coupon Yield Estimated Unrealized
No. Description of Security NO. Date Rate to Maturity Cost Basis Market Value Gain/(Loss) U.S. Consumer Price Index (Inflation) 06/30/24 3.000%
1 Local Agency Investment Fund (LAIF) N/A Daily 4.550% 4.550% 36,832,251 $ 36,696,562 $ (135,688) $ 2 Calif. Asset Management Program (CAMP) N/A Daily 5.430% 5.430% 27,243,719 $ 27,243,719 $ -3 Wells Fargo Money Market & Checking Accts. N/A Daily (Sweep) 5.180% 5.180% 6,398,666 $ 6,398,666 $ -4 First American Institutional Prime 26200630S Daily 4.840% 4.840% 602,753 $ 602,753 $ -5 US Treasury Notes 91282CEX5 06/30/24 3.000% 4.260% 489,395 $ 500,000 $ 10,6056 US Treasury Notes 91282CCL3 07/15/24 0.375% 0.409% 649,367 $ 648,752 $ (615)7 US Treasury Notes 91282CCT6 08/15/24 0.375% 0.410% 1,198,922 $ 1,192,572 $ (6,350)8 Walt Disney Co Corporate Bonds 254687FK7 08/30/24 1.750% 1.836% 273,878 $ 273,158 $ (721)9 US Treasury Notes 912828YE4 08/31/24 1.250% 5.230% 3,436,031 $ 3,574,872 $ 138,841 10 Darrough Drive AD 09/02/24 6.000% 6.000% 12,246 $ 12,246 $ -11 Deere John Mtn 24422EVU0 09/10/24 0.625% 0.650% 89,942 $ 89,113 $ (829)12 Caterpillar Finl Mtn 14913R2P1 09/13/24 0.600% 0.650% 224,694 $ 222,759 $ (1,935)13 Toyota Motor Credit Corp 89236TJN6 09/13/24 0.625% 2.770% 522,550 $ 544,550 $ 22,00014 Plumas Bank CD 269101799 09/17/24 0.000% 0.000% 1,049,560 $ 1,049,560 $ -15 Inter Amer Bk Mtn 4581X0DZ8 09/23/24 0.500% 0.520% 584,567 $ 578,460 $ (6,107)16 US Treasury Notes 912828YH7 09/30/24 1.500% 0.474% 154,764 $ 148,535 $ (6,229)17 Federal Farm Credit Bank 3133EMCN0 10/15/24 0.400% 0.432% 948,813 $ 935,199 $ (13,614)18 California St Dept Wtr Res Cent 13067WPG1 12/01/24 2.751% 1.486% 179,348 $ 168,108 $ (11,240)19 US Treasury Notes 912828YY0 12/31/24 1.750% 0.326% 1,224,795 $ 1,138,445 $ (86,349)20 US Treasury Notes 912828YY0 12/31/24 1.750% 0.180% 961,945 $ 894,127 $ (67,818)21 US Treasury Notes 912828YY0 12/31/24 1.750% 0.270% 1,092,426 $ 1,015,409 $ (77,017)22 US Treasury Notes 912828YY0 12/31/24 1.750% 0.280% 955,793 $ 888,408 $ (67,384)23 US Treasury Notes 912828YY0 12/31/24 1.750% 0.290% 424,031 $ 394,137 $ (29,895)24 US Treasury Notes 912828YY0 12/31/24 1.750% 2.940% 387,875 $ 360,529 $ (27,346)25 Federal Home Loan Mortgage Corp (Freddie Mac) 3137EAEP0 02/12/25 1.500% 5.280% 951,970 $ 976,990 $ 25,02026 US Treasury Notes 91282CDZ1 02/15/25 1.500% 2.840% 337,928 $ 341,814 $ 3,88627 American Express Co Corp Note 025816CQ0 03/04/25 2.250% 2.290% 79,919 $ 78,260 $ (1,659)28 John Deere Med Term Notes 24422EWB1 03/07/25 2.125% 3.030% 975,850 $ 978,210 $ 2,36029 Roche Holdings Inc. (Callable) Corporate 771196BT8 03/10/25 2.130% 2.130% 365,000 $ 356,886 $ (8,114)30 Home Depot Inc Corporate Notes 437076CM2 04/15/25 2.700% 2.760% 24,956 $ 24,493 $ (464)31 US Treasury Notes 91282CEH0 04/15/25 2.625% 4.650% 1,318,201 $ 1,323,351 $ 5,15032 Bank of New York Mellon 06406RAN7 04/24/25 1.600% 0.841% 437,402 $ 411,961 $ (25,441)33 US Treasury Notes 912828ZL7 04/30/25 0.375% 2.710% 838,409 $ 865,062 $ 26,65334 Cintas Corporation 17252MAP5 05/01/25 3.450% 3.460% 59,987 $ 58,984 $ (1,003)35 USAA Capital Corp 90327QD89 05/01/25 3.375% 3.490% 214,297 $ 211,330 $ (2,967)36 Chevron Corp New Notes 166764BW9 05/11/25 1.554% 3.200% 572,040 $ 580,848 $ 8,80837 Apple Inc. 037833BG4 05/13/25 3.200% 0.814% 436,332 $ 393,152 $ (43,180)38 The Goldman Sachs Group 38148LAE6 05/22/25 3.750% 1.026% 222,856 $ 196,744 $ (26,112) June 2024
City of Yuba City
Monthly Investment Statement
City Held Investments
CUSIP Maturity Coupon Yield Estimated Unrealized
No. Description of Security NO. Date Rate to Maturity Cost Basis Market Value Gain/(Loss) June 2024
39 National Australia 63254ABD9 06/09/25 3.500% 3.500% 250,000 $ 245,695 $ (4,305)40 National Rural Med Term Notes 63743HFE7 06/15/25 3.450% 3.460% 44,988 $ 44,125 $ (863)41 US Treasury Notes 912828ZW3 06/30/25 0.250% 0.360% 760,884 $ 738,653 $ (22,231)42 US Treasury Notes 912828ZW3 06/30/25 0.250% 3.030% 551,627 $ 571,860 $ 20,23343 JP Morgan Chase & Co 46625HMN7 07/15/25 3.900% 1.024% 450,500 $ 393,840 $ (56,660)44 IBM Corporate Notes 459200KS9 07/27/25 4.000% 4.000% 200,000 $ 197,140 $ (2,860)45 Federal National Mortgage (Fannie Mae) 3135G05X7 08/25/25 0.375% 0.410% 499,070 $ 474,050 $ (25,020)46 Federal National Mortgage (Fannie Mae) 3135G05X7 08/25/25 0.375% 3.050% 918,880 $ 948,100 $ 29,22047 Buttes Vista 2000-1 AD, 2013 Refunding 09/02/25 2.730% 2.730% 89,774 $ 89,774 $ -48 Walmart Inc. Corporate Notes 931142EW9 09/09/25 3.900% 3.920% 164,885 $ 163,083 $ (1,802)49 Walmart Inc. Corporate Notes 931142EW9 09/09/25 3.900% 4.070% 398,160 $ 393,809 $ (4,351)50 Federal Farm Credit Bank 3133ENP95 09/30/25 4.250% 4.191% 1,101,808 $ 1,090,980 $ (10,828)51 United Health Group 91324PEN8 10/15/25 5.150% 5.150% 69,994 $ 69,898 $ (96)52 National Rural Med Term Notes 63743HFF4 10/30/25 5.450% 5.500% 64,913 $ 65,014 $ 10153 Citigroup Inc. Corporate Notes (Callable) 172967ND9 11/03/25 1.281% 1.281% 135,000 $ 132,891 $ (2,109)54 HAROT 2021-3 A3 43815EAC8 11/18/25 0.410% 0.410% 32,193 $ 31,715 $ (478)55 Amazon 023135CN4 12/01/25 4.600% 4.600% 624,963 $ 621,056 $ (3,906)56 Bank of America Corp Notes (Callable) 06051GKE8 12/06/25 1.530% 1.530% 225,000 $ 220,802 $ (4,199)57 US Treasury Notes 91282CBC4 12/31/25 0.380% 0.728% 368,965 $ 350,700 $ (18,265)58 US Treasury Notes 9128285T3 12/31/25 2.625% 4.834% 526,176 $ 532,081 $ 5,90559 HART 2021-B A3 44934KAC8 01/15/26 0.380% 0.390% 33,148 $ 32,854 $ (295)60 HAROT 2021-4 A3 43815GAC3 01/21/26 0.880% 0.885% 51,934 $ 50,888 $ (1,046)61 Bank of America Corp F/R 06051GGZ6 01/23/26 3.366% 1.326% 219,558 $ 197,232 $ (22,326)62 Morgan Stanley 61746BDZ6 01/27/26 3.875% 1.270% 224,686 $ 195,508 $ (29,178)63 State Street Corp 857477BR3 02/06/26 1.746% 1.750% 65,000 $ 63,422 $ (1,578)64 Federal Farm Credit Bank 3133EPCF0 03/02/26 4.500% 5.060% 1,086,581 $ 1,093,763 $ 7,18265 HART 2021-C A3 44935FAD6 05/15/26 0.740% 0.745% 37,793 $ 37,181 $ (612)66 Carmx 2021-3 A3 14317DAC4 07/15/26 0.550% 0.550% 64,358 $ 62,990 $ (1,369)67 MBART 2021-1 A3 58772WAC7 06/15/26 0.460% 0.463% 66,430 $ 65,212 $ (1,218)68 TAOT 2022A A3 89239KAC5 06/15/26 0.000% 1.230% 88,209 $ 86,484 $ (1,725)69 GM Fin Cons Auto Rec TR 2021 A-3 380140AC7 06/16/26 0.480% 0.480% 34,278 $ 33,696 $ (582)70 Toyota Motor Credit Corp 89236TJK2 06/18/26 1.125% 1.204% 224,145 $ 208,368 $ (15,777)71 VALET 2021-1 A3 92868KAC7 06/22/26 1.020% 1.021% 62,987 $ 61,854 $ (1,133)72 COMET 2021-A1 14041NFW6 07/15/26 0.550% 0.550% 279,989 $ 279,373 $ (616)73 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.030% 910,781 $ 931,332 $ 20,55074 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.040% 1,274,984 $ 1,303,752 $ 28,76875 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.330% 405,545 $ 414,695 $ 9,15176 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.460% 807,785 $ 826,012 $ 18,22677 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.930% 1,998,633 $ 2,043,729 $ 45,096
City of Yuba City
Monthly Investment Statement
City Held Investments
CUSIP Maturity Coupon Yield Estimated Unrealized
No. Description of Security NO. Date Rate to Maturity Cost Basis Market Value Gain/(Loss) June 2024
78 Federal Home Loan Bank 3130AWTQ3 09/11/26 4.625% 4.750% 647,680 $ 648,583 $ 90479 COPAR 2021-1 A3 14044CAC6 09/15/26 0.770% 0.770% 58,602 $ 57,212 $ (1,390)80 DCENT 2021-A1 A1 254683CP8 09/15/26 5.500% 4.751% 249,946 $ 247,350 $ (2,596)81 TAOT 2022-B A3 89238FAD5 09/15/26 2.931% 2.931% 62,879 $ 61,912 $ (967)82 GM Fin Cons Auto Rec TR 2021-4 A-3 362554AC1 09/16/26 0.680% 0.681% 49,198 $ 48,054 $ (1,144)83 Citigroup Inc. Corporate Notes 172967NX5 09/29/26 5.610% 5.610% 150,000 $ 149,918 $ (83)84 WOART 2021-D A3 98163KAC6 10/15/26 0.810% 0.813% 65,151 $ 63,786 $ (1,365)85 US Treasury Notes 912828U24 11/15/26 2.000% 4.060% 857,648 $ 870,444 $ 12,79586 COMET 2021-A3 A3 14041NFY2 11/16/26 1.040% 1.043% 324,955 $ 319,443 $ (5,513)87 Federal Home Loan Bank 3130AQF65 12/21/26 1.250% 4.122% 625,591 $ 644,546 $ 18,95588 Target Corporation 87612EBM7 01/15/27 1.950% 1.990% 39,932 $ 37,224 $ (2,708)89 Microsoft Corp 594918BY9 02/06/27 3.300% 4.360% 673,813 $ 675,220 $ 1,40790 Berkshire Hathaway Financial Notes 084664CZ2 03/15/27 2.300% 2.690% 417,261 $ 398,382 $ (18,879)91 US Treasury Notes 91282CEF4 03/31/27 2.500% 4.404% 795,716 $ 805,673 $ 9,95792 CARMAX 2022-3 A3 14318MAD1 04/15/27 0.000% 3.970% 192,679 $ 190,315 $ (2,364)93 US Treasury Notes 91282CEN7 04/30/27 2.750% 3.730% 841,572 $ 833,639 $ (7,934)94 UnitedHealth Group 91324PEG3 05/15/27 3.700% 3.710% 39,978 $ 38,709 $ (1,270)95 NAROT 2022-B A3 65480JAC4 05/17/27 4.580% 4.460% 174,964 $ 173,474 $ (1,490)96 US Treasury Notes 91282CEW7 06/30/27 3.250% 4.544% 478,810 $ 482,440 $ 3,63097 US Treasury Notes 91282CFB2 07/31/27 2.750% 3.510% 2,523,016 $ 2,519,078 $ (3,937)98 US Treasury Notes 91282CFB2 07/31/27 2.750% 4.060% 1,663,799 $ 1,661,202 $ (2,597)99 US Treasury Notes 91282CFB2 07/31/27 2.750% 4.150% 2,463,805 $ 2,459,960 $ (3,845) 100 US Treasury Notes 91282CFB2 07/31/27 2.750% 4.420% 1,385,751 $ 1,383,588 $ (2,163)101 US Treasury Notes 91282CFB2 07/31/27 2.750% 4.550% 1,568,873 $ 1,566,425 $ (2,448)102 MBART 2022-1 A3 58768PAC8 08/16/27 5.210% 5.210% 349,931 $ 349,328 $ (603)103 Buttes Vista 2002-1 AD, 2013 Refunding 09/02/27 2.730% 2.730% 177,822 $ 177,822 $ -104 Apple Inc 037833DB3 09/12/27 2.900% 3.940% 286,863 $ 283,332 $ (3,531)105 Apple Inc 037833DB3 09/12/27 2.900% 4.135% 473,730 $ 472,220 $ (1,510)106 DCENT 2022-A4 A 254683CX1 10/15/27 0.001% 5.030% 239,969 $ 239,107 $ (862)107 Pepsico 713448DY1 10/15/27 3.000% 4.238% 711,060 $ 708,870 $ (2,190)108 US Treasury Notes 91282CFZ9 11/30/27 3.875% 4.770% 1,063,133 $ 1,056,171 $ (6,962)109 US Treasury Notes 91282CFZ9 11/30/27 3.875% 4.200% 3,755,617 $ 3,731,025 $ (24,593)110 US Treasury Notes 91282CFZ9 11/30/27 3.875% 4.060% 1,440,371 $ 1,430,939 $ (9,432)111 US Treasury Notes 91282CFZ9 11/30/27 3.875% 3.983% 1,887,309 $ 1,874,950 $ (12,359)112 US Treasury Notes 91282CGC9 12/31/27 3.875% 3.983% 747,044 $ 735,615 $ (11,429)113 Federal Farm Credit Bank 3133EN5N6 01/06/28 4.000% 3.891% 433,099 $ 423,259 $ (9,840)114 American Honda Finance 02665WED9 01/12/28 4.700% 4.341% 608,940 $ 594,174 $ (14,766)115 Bristol Myers Squibb 110122DE5 02/20/28 3.900% 4.930% 334,380 $ 337,978 $ 3,598116 US Treasury Notes 91282CGP0 02/29/28 4.000% 4.200% 1,613,384 $ 1,613,250 $ (134)117 US Treasury Notes 91282CGP0 02/29/28 4.000% 4.480% 1,351,421 $ 1,351,309 $ (112)118 US Treasury Notes 91282CGP0 02/29/28 4.000% 4.680% 1,196,193 $ 1,196,094 $ (99)
City of Yuba City
Monthly Investment Statement
City Held Investments
CUSIP Maturity Coupon Yield Estimated Unrealized
No. Description of Security NO. Date Rate to Maturity Cost Basis Market Value Gain/(Loss) June 2024
119 Astrazeneca Finance 04636NAF0 03/03/28 4.875% 4.920% 324,344 $ 324,539 $ 195120 Mastercard 57636QAW4 03/09/28 4.875% 4.900% 324,685 $ 326,736 $ 2,051121 Federal Home Loan Bank 3130ATS57 03/10/28 4.500% 4.114% 1,017,260 $ 998,770 $ (18,490)122 Nestle Holdings, Inc 641062BF0 03/14/28 5.000% 5.010% 674,825 $ 677,315 $ 2,491123 Home Depot Inc Corporate Notes 437076CE0 03/15/28 0.900% 4.193% 511,974 $ 522,678 $ 10,704124 JP Morgan Chase & Co 46647PDA1 04/26/28 4.323% 4.800% 466,289 $ 463,377 $ (2,912)125 Merck & Co Inc Corp Notes 58933YBH7 05/17/28 4.050% 4.070% 139,887 $ 137,056 $ (2,831)126 US Treasury Notes 91282CCE9 05/31/28 1.250% 3.991% 1,228,395 $ 1,241,184 $ 12,789127 DCENT 2023-A2 A 254683CZ6 06/15/28 0.000% 4.930% 349,953 $ 348,548 $ (1,405)128 US Treasury Notes 91282CCH2 06/30/28 1.250% 4.490% 2,026,785 $ 2,034,787 $ 8,002129 Bank of America Medium Term Notes 06051GKW8 07/22/28 4.985% 4.970% 449,568 $ 446,382 $ (3,186)130 US Bancorp MTNS Bank Notes 91159HJF8 07/22/28 4.548% 4.903% 988,920 $ 977,540 $ (11,380)131 US Treasury Notes 912810FE3 08/15/28 5.500% 4.751% 722,504 $ 730,982 $ 8,478132 Citibank NA Senior Notes 17325FBB3 09/29/28 5.803% 4.850% 571,522 $ 565,048 $ (6,474)133 US Treasury Notes 91282CJF9 10/31/28 4.875% 4.659% 680,906 $ 687,602 $ 6,696134 US Treasury Notes 9128285M8 11/15/28 3.125% 4.697% 515,004 $ 522,264 $ 7,260135 John Deere Med Term Notes 24422EXH7 01/16/29 4.500% 4.550% 399,036 $ 393,208 $ (5,828)136 Eli Lilly & Co Bonds 532457CK2 02/09/29 4.500% 4.787% 987,780 $ 991,570 $ 3,790137 Cisco Systems Inc Bonds 17275RBR2 02/26/29 4.850% 4.862% 999,310 $ 999,820 $ 510138 Federal Home Loan Bank 3130ATS57 03/09/29 4.500% 4.733% 1,484,835 $ 1,506,300 $ 21,465139 Federal Farm Credit Bank 3133EP5U5 03/20/29 4.125% 4.284% 1,241,138 $ 1,235,663 $ (5,475)140 Staple/Ashley/Cornwell AD 09/02/30 6.000% 6.000% 69,309 $ 69,309 $ -141 WWTP Solar System (DS, June 30) 06/30/33 4.000% 4.000% 1,405,736 $ 1,405,736 $ - --
Total City Held Investments $ 158,250,761.85 158,789,926.11 $ (539,164) $
City of Yuba City Investment Report
Investments Held By Trustees
Description of Maturity Coupon Yield Estimated Unrealized No. Description of Debt Issuance Account Type Security Date Rate to Maturity Cost Basis Market Value Gain/(Loss) 142 2013 Water Rev COP Debt Service Blackrock T-Fund Daily 5.190% 5.190% 1,481 $ 1,481 - 143 Interest Blackrock T-Fund Daily 5.000% 5.000% 0 0 -144 TABs Refunding - 2015 Debt Service Blackrock T-Fund Daily 5.190% 5.190% 776 776 -145 Interest Blackrock T-Fund Daily 5.190% 5.190% 255 255 -146 Interest Blackrock T-Fund Daily 0.000% 0.000% - - -147 Principal Blackrock T-Fund Daily 0.000% 0.000% - - -148 Reserve Blackrock T-Fund Daily 5.190% 5.190% 130,565 130,565 -149 Reserve Assured Guaranty Daily 0.340% 0.000% 1,870,568 1,870,568 -150 Reserve Blackrock T-Fund Daily 5.190% 5.190% 486,730 486,730 -151 Gauche Park Refunding - 2015 Debt Service Blackrock T-Fund Daily 5.190% 5.190% 699 699 -152 Debt Service Blackrock T-Fund Daily 0.000% 0.000% - - -153 Reserve Assured Guaranty Daily 0.000% 0.000% 650,031 650,031 -154 CFD Refund 2015 Debt Service Blackrock T-Fund Daily 5.190% 5.190% 1,404 1,404 -155 Reserve Blackrock T-Fund Daily 5.190% 5.190% 43,339 43,339 -156 I-Bank Paymnt Blackrock T-Fund Daily 5.190% 5.190% 109 109 -157 Wastewater Revenue Bonds (CREBS) - 2017 Bond Blackrock T-Fund Daily 5.190% 5.190% 419 419 - 158 Authority 2018 Wastewater Revenue Bonds Bond Blackrock T-Fund Daily 0.000% 0.000% - - 159 Bond Blackrock T-Fund Daily 0.000% 0.000% 1,101 1,101 160 Project First Am Treas Obl Daily 4.910% 4.910% 21,331 21,331 Total Trustee-Held Investments $ 3,208,808 3,208,808 $ - $ TOTAL CITY & TRUSTEE-HELD INVESTMENTS $ 161,459,570 161,998,734 $ (539,164) $ Signed: Date:
Spencer Morrison, City Treasurer/s/ Spencer Morrison 7/25/2024 June 2024
I certify to the best of my knowledge: (i) That this statement reflecting all City investments is accurate and complete; (ii) That each investment conforms with the City's investment policies,as well as California's Government Code; and (iii) That sufficient cash flow liquidity is available to meet the next six months of estimated disbursements.
Balance Balance Period
Account Types 3/31/2024 6/30/2024 Activity
City Held Investments Local Agency Investment Fund 41,829,972 $ 36,696,562 $ (5,133,409) $ California Asset Management Program 17,000,326 27,243,719 10,243,393 Cash/Money Market 6,436,114 7,001,419 565,305 Federal Agency Securities 10,950,443 10,976,203 25,760 US Treasuries 50,769,325 51,787,446 1,018,121 Certificates of Deposit 1,049,560 1,049,560 0 Corporate Bonds and Asset Backed Sec. 21,250,686 20,748,703 (501,983) City-held Assessment Districts & Municipals 1,922,235 1,922,994 759 Supranationals 816,891 824,155 7,264
Total City Held Investments 152,025,552 $ 158,250,762 $ 6,225,210 $ Trustee Held Investments Water Refunding 2013 315 $ 1,481 $ 1,166 $ TABs Refunding - 2015 2,481,997 2,488,894 6,897 Gauche Park Refunding 650,168 650,730 562 Sunsweet CFD Refund 44,272 44,852 580 Wastewater Revenue Bonds - 2017 156 419 263Wastewater Revenue Bonds - 2018 21,614 22,432 819 Total Trustee Held Investments 3,198,522 3,208,808 10,286 $ Total 155,224,075 $ 161,459,570 $ 6,235,495 $
City of Yuba City - Quarterly Investment Transaction Report June 2024 - Market Value Summary
Settlement Maturity Trade Activity Coupon Yield to
Description of Security Broker Date Date Date Type Rate Maturity Cost Basis US Treasury Notes 04/01/24 03/31/24 03/31/24 Matured 2.125% 1.673% 662,444US Treasury Notes 04/11/24 06/30/24 04/09/24 Sale 2.000% 1.419% 917,807Capital One Prime Trust 04/15/24 09/15/26 04/15/24 Sale 0.770% 0.770% 6,180CARMAX Auto Owner Trust 04/15/24 06/15/26 04/15/24 Sale 0.550% 0.550% 7,337Hyundai Auto Receivables Trust 04/15/24 01/15/26 04/15/24 Sale 0.380% 0.380% 8,880Hyundai Auto Receivables Trust 04/15/24 05/15/26 04/15/24 Sale 0.740% 0.740% 5,416Mercedes Benz Auto Owners Trust 04/15/24 06/15/26 04/15/24 Sale 0.460% 0.460% 8,525Toyota Auto Receivables Owners Trust 04/15/24 09/15/26 04/15/24 Sale 2.930% 2.930% 5,041Toyota Auto Receivables Owners Trust 04/15/24 06/15/26 04/15/24 Sale 1.230% 1.230% 9,347World Omni Auto Receivables Trust 04/15/24 10/15/26 04/15/24 Sale 0.810% 0.810% 6,977GM Consolidated Auto Receivables 04/16/24 09/16/26 04/16/24 Sale 0.680% 0.680% 5,063GM Consolidated Auto Receivables 04/16/24 06/16/26 04/16/24 Sale 0.480% 0.480% 4,860Honda Auto Receivables Owners Trust 04/18/24 11/18/25 04/18/24 Sale 0.410% 0.410% 5,751Honda Auto Receivables Owners Trust 04/22/24 01/21/26 04/22/24 Sale 0.880% 0.880% 6,363Volkswagen Auto Loan Enhanced Trust 04/22/24 06/22/26 04/22/24 Sale 1.020% 1.020% 8,162Federal Home Loan Bank 04/23/24 04/23/24 04/23/24 Matured 0.350% 0.350% 1,500,000US Treasury Notes 04/30/24 04/30/24 04/30/24 Matured 2.000% 1.591% 509,004US Treasury Notes 05/06/24 06/30/24 05/02/24 Sale 3.000% 0.270% 1,028,363IBM Corporation Bonds 05/15/24 05/15/24 05/15/24 Matured 3.000% 0.715% 1,075,570Capital One Prime Trust 05/15/24 09/15/26 05/15/24 Sale 0.770% 0.770% 5,743CARMAX Auto Owner Trust 05/15/24 04/15/27 05/15/24 Sale 3.970% 3.970% 5,412Hyundai Auto Receivables Trust 05/15/24 01/15/26 05/15/24 Sale 0.380% 0.380% 8,311Hyundai Auto Receivables Trust 05/15/24 05/15/26 05/15/24 Sale 0.740% 0.740% 5,023Mercedes Benz Auto Owners Trust 05/15/24 06/15/26 05/15/24 Sale 0.460% 0.460% 9,158Toyota Auto Receivables Owners Trust 05/15/24 09/15/26 05/15/24 Sale 2.930% 2.930% 5,059Toyota Auto Receivables Owners Trust 05/15/24 06/15/26 05/15/24 Sale 1.230% 1.230% 9,410World Omni Auto Receivables Trust 05/15/24 10/15/26 05/15/24 Sale 0.810% 0.810% 7,205GM Consolidated Auto Receivables 05/16/24 06/16/26 05/16/24 Sale 0.480% 0.480% 4,753GM Consolidated Auto Receivables 05/16/24 09/16/26 05/16/24 Sale 0.680% 0.680% 5,049Caterpillar Med Term Notes 05/17/24 05/17/24 05/17/24 Matured 0.450% 0.497% 998,750Honda Auto Receivables Owners Trust 05/20/24 11/18/25 05/18/24 Sale 0.410% 0.410% 5,568Volkswagen Auto Loan Enhanced Trust 05/20/24 06/22/26 05/20/24 Sale 1.020% 1.020% 8,359Honda Auto Receivables Owners Trust 05/21/24 01/21/26 05/21/24 Sale 0.880% 0.880% 6,236US Treasury Notes 06/13/24 06/30/24 06/11/24 Sale 2.000% 1.653% 1,088,600US Treasury Notes 06/13/24 06/30/24 06/11/24 Sale 2.000% 1.566% 783,031GM Consolidated Auto Receivables 06/17/24 06/16/26 06/16/24 Sale 0.480% 0.480% 4,769Toyota Auto Receivables Owners Trust 06/17/24 09/15/26 06/15/24 Sale 2.930% 2.930% 5,055Toyota Auto Receivables Owners Trust 06/17/24 06/15/26 06/15/24 Sale 1.230% 1.230% 8,858GM Consolidated Auto Receivables 06/17/24 09/16/26 06/16/24 Sale 0.680% 0.680% 4,951CARMAX Auto Owner Trust 06/17/24 06/15/26 06/15/24 Sale 0.550% 0.550% 7,142 Investment Activity
April, May, June 2024
SALES/REDEMPTIONS
Settlement Maturity Trade Activity Coupon Yield to
Description of Security Broker Date Date Date Type Rate Maturity Cost Basis Mercedes Benz Auto Owners Trust 06/17/24 06/15/26 06/15/24 Sale 0.460% 0.460% 8,155Capital One Prime Trust 06/17/24 09/15/26 06/15/24 Sale 0.770% 0.770% 5,762CARMAX Auto Owner Trust 06/17/24 04/15/27 06/15/24 Sale 3.970% 3.970% 11,904Hyundai Auto Receivables Trust 06/17/24 01/15/26 06/15/24 Sale 0.380% 0.380% 8,387Hyundai Auto Receivables Trust 06/17/24 05/15/26 06/15/24 Sale 0.740% 0.740% 4,977World Omni Auto Receivables Trust 06/17/24 10/15/26 06/15/24 Sale 0.810% 0.810% 6,976Honda Auto Receivables Owners Trust 06/18/24 11/18/25 06/18/24 Sale 0.410% 0.410% 5,441Volkswagen Auto Loan Enhanced Trust 06/20/24 06/22/26 06/20/24 Sale 1.020% 1.020% 8,081Honda Auto Receivables Owners Trust 06/21/24 01/21/26 06/21/24 Sale 0.880% 0.880% 6,087American Honda Med Term Notes 06/27/24 06/27/24 06/27/24 Matured 2.400% 2.430% 249,603 9,082,905
US Treasury Notes Morgan Stanley & Co LLC 04/11/24 10/31/28 04/10/24 Buy 4.875% 4.659% 680,906US Treasury Notes BMO Capital Markets Corp 04/11/24 02/29/28 04/09/24 Buy 4.000% 4.480% 1,351,421Federal Home Loan Bank Jefferies LLC 04/23/24 03/09/29 04/23/24 Buy 4.500% 4.733% 1,484,835US Treasury Notes Bank of Montreal 04/30/24 11/15/28 04/29/24 Buy 3.125% 4.697% 515,004US Treasury Notes Morgan Stanley & Co LLC 05/06/24 02/29/28 05/02/24 Buy 4.000% 4.680% 1,196,193Cisco Systems Inc Bonds BNP Paribas NY 05/15/24 02/26/29 05/09/24 Buy 4.850% 4.862% 999,310Eli Lilly & Co Bonds BNP Paribas NY 05/17/24 02/09/29 05/14/24 Buy 4.500% 4.787% 987,780US Treasury Notes BMO Capital Markets Corp 06/13/24 06/30/28 06/11/24 Buy 1.250% 4.490% 2,026,785 Total Purchases $ 9,242,234
Total Sales/Redemptions
PURCHASES
Agenda Item 8
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Public Works
Presentation By: Joshua Wolffe, Associate Engineer
Summary
Subject: Corporation Yard Elevator Replacement - Contract Award Recommendation: Adopt a Resolution which takes the following actions:
A. Adopts a CEQA Class 1 Categorical Exemption
B. Awards a construction contract to TK Elevator in the amount of $144,850.00 through Sourcewell Contract No. 080420-TKE, with the finding that it is in the best interest of the City
C. Authorizes the City Manager to execute all necessary documents related to the Project
Fiscal Impact: $166,577.50 – Account No. 1028 (Improvements to Buildings and Grounds)
$144,850.00 – Contract Award Amount
$ 21,727.50 – (15%) Construction Contingency
Purpose:
To replace the existing obsolete elevator at the Corporation Yard with a new elevator.
Council Strategic Goal:
This project addresses the Council Strategic Goal of infrastructure. This project will replace an elevator which is beyond it's useful life, with a new elevator that meets all current State codes, reducing annual maintenance and operations costs while maintaining the building's ADA accessibility.
Background:
The elevator in the Corporation Yard office/shop complex was installed in 1992, coinciding with the building's original construction. Having been in service for 32 years, it has surpassed the typical lifespan of 20-30 years for elevators. In the last five years, the elevator has experienced an increase in malfunctions, occasionally resulting in staff being trapped inside. Moreover, due to its age, replacement parts are no longer manufactured, which complicates maintenance and impacts the elevator's reliability.
Analysis:
The proposed elevator replacement project will replace the current elevator and its mechanical, electrical, and hydraulic components, modernizing the system. This will reduce malfunctions and subsequent repairs, operational costs, and energy use costs. The new elevator system is proposed to be manufactured and installed by TK Elevator Corporation (TKE), a well-known and trusted elevator manufacturing company. Additionally, TKE proposes to subcontract with Ultimate Construction Services (UCS) for Electrical, Fire Life Safety, and other related services, to ensure that the new elevator meets all current state codes, and the project is turn-key.
Sourcewell gathers nationwide bids for products and services resulting in time and cost efficiencies through the procurement process, and better purchasing leverage due to a nationwide scope. The City has utilized Sourcewell on various occasions in recent years for purchases and construction contracts, with great results. Some of these include: purchase of playground equipment, purchase of Public Works equipment, design/build contract for the bike park at Didar S. Bains Park, and design/build contract for the Blackburn Talley LED Stadium Lighting Retrofit.
Staff’s recommendation is to utilize Sourcewell for the procurement of the Corporation Yard Elevator Replacement construction contract, as is allowed under the City’s Purchasing Policies and Procedures, to capitalize on the cost savings of the nationwide contract.
Fiscal Impact:
Based on the Sourcewell quote, the contract amount is $144,850.00. Additionally, staff is requesting a 15-percent construction contingency of $21,727.50 for any unforeseen circumstances that may arise during construction, creating a total project cost of $166,577.50. The project will be funded through CIP Account No. 1028 (Improvements to Buildings and Grounds), as follows:
Account No. Current Balance Proposed Elevator Funding Remaining Balance1 901028 $359,000 $107,000 $252,000
931028 $ 26,000 $ 0 $ 26,000
921028 $ 44,000 $ 20,000 $ 24,000
971028 $ 41,000 $ 20,000 $ 21,000
981028 $201,000 $ 20,000 $181,000
Total $671,000 $167,000 $504,000
Table Notes:
1. Additional funds budgeted in FY 24/25 include Corp Yard roof and in-wall gutter repairs, WWTF lab repairs, and Madden House roof/dry rot repairs.
Environmental:
Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Class 1 Categorical Exemption set forth in CEQA Guidelines Section 15301, as the replacement of an existing elevator within an existing City facility is defined as a minor alteration of existing public facilities, involving negligible or no expansion. Further, none of the exceptions to Categorical Exemptions set forth in CEQA Guidelines 15300.2 apply to this project.
Alternatives:
1. Direct staff to conduct a formal bid process, which will cause project delay and increased costs.
2. Provide other options to staff for funding the project.
Recommendation:
Adopt a Resolution which takes the following actions:
A. Adopts a CEQA Class 1 Categorical Exemption
B. Awards a construction contract to TK Elevator in the amount of $144,850.00 through Sourcewell Contract No. 080420-TKE, with the finding that it is in the best interest of the City C. Authorizes the City Manager to execute all necessary documents related to the Project Attachments:
1. Attachment 1 - Resolution
2. Exhibit A - Sourcewell Contract
Prepared By: Submitted By:
Josh Wolffe
Senior Civil Engineer
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO. _________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY ADOPTING A CEQA CLASS 1 CATEGORICAL EXEMPTION; AWARDING A CONSTRUCTION CONTRACT TO TK ELEVATOR IN THE AMOUNT OF $144,850.00 THROUGH SOURCEWELL CONTRACT NO. 080420-TKE, WITH THE FINDING THAT IT IS IN THE BEST INTEREST OF THE CITY; AND AUTHORIZING THE CITY
MANAGER TO EXECUTE ALL NECESSARY DOCUMENTS RELATED TO THE
PROJECT
WHEREAS, the City of Yuba City desires to utilize Sourcewell Cooperative Contract No. 080420-TKE for the procurement of the Corporation Yard Elevator Replacement contract at a competitively bid, negotiated price; and, WHEREAS, Sourcewell Cooperative awarded Contract No. 080420-TKE to TK Elevator, of Atlanta, GA following a nationwide competitive Request for Quotation process; and,
WHEREAS, the City desires to award the bid to TK Elevator of Atlanta, GA through the Sourcewell Cooperative Contract No. 080420-TKE negotiated price of $144,850.00.
NOW, THEREFORE, be it resolved by the City Council of Yuba City as follows:
Section 1. The City Council finds and determines that a Class 1 Categorical Exemption set forth in the California Environmental Quality Act (CEQA) Guidelines, Section 15301, applies to this project, as the replacement of an existing elevator within an existing City facility is defined as a minor alteration of existing public facilities, involving negligible or no expansion. Further, none of the exceptions to Categorical Exemptions set forth in CEQA Guidelines 15300.2 apply to this project.
Section 2. The City Council awards the construction contract to TK Elevator of Atlanta, GA by piggybacking on the Sourcewell Cooperative Contract No. 080420-TKE negotiated price of $144,850.00, with the finding that it is in the best interest of the City.
Section 3. The City Manager is authorized to execute any agreement or other document required for the purchase subject to approval as to legal form by the City Attorney.
Section 4. This Resolution shall take effect immediately.
The foregoing Resolution was duly and regularly introduced, passed, and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on the 20th day of August 2024.
AYES:
NOES:
ABSENT:
Shon Harris, Mayor
ATTEST:
Ciara Wakefield, City Clerk Administrator
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY:
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
Attachment(s):
A. Exhibit A – Quote: Sourcewell Contract Number TKE-080420
EXHIBIT A
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 1
Yuba City Corporate Yard – July 2024
June 10, 2024
Purchaser: City Of Yuba City Location: Yuba City Corporate Yard Address: 1185 Market St Address: 1185 Market St
Yuba City, CA 95991-3412 Yuba City, CA 95991-3412
TK Elevator Corporation (hereinafter "TK Elevator") is dedicated to delivering City Of Yuba City (hereinafter “Purchaser”) the safest, highest quality vertical transportation solutions. I am pleased to present this customized Proposal (the “Proposal”) in the amount of $144,850.00 inclusive of all applicable sales and use taxes to modernize the elevator equipment described in the pages that follow at the above-referenced location.
Our modernization package is engineered specifically for your elevator system and will include the elevator mechanical and electrical components being replaced, refurbished or retained.
Benefits of Modernization include:
• Increased durability and reliability
• Improved fire and life safety features
• Decreased waiting times
• Reduced energy consumption
• Reduced operational cost
• Reduced troubleshooting time
This Proposal shall remain in effect for the next thirty (30) days unless it is revoked earlier by TK Elevator in writing.
The price above is subject to escalation - even after Purchaser’s acceptance of this Proposal – under certain circumstances including TK Elevator being subjected to increased charges by its suppliers for any of the applicable materials and/or components due to supply chain issues; the imposition of new or increased taxes, tariffs, or other charges imposed by applicable governmental authorities; TK Elevator being subjected to increased charges from its shippers and/or freight forwarders; any material called for in this Proposal being released into production more than 6 months following the written acceptance of this Proposal; or any work described in this Proposal is not completed by June 30, 2025.
In the event you have any questions regarding the content of this Proposal, please do not hesitate to contact me. We appreciate your consideration.
Sincerely,
Steve Boisvert, Sr Sales Executive, [email protected], +1 (916) 813-9668
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 2
SCOPE OF WORK
Grouping Name: PASSENGER Equipment Type: Hydraulic Speed: 100 fpm 2 Stops (2 Front /0 Rear) Capacity: 2000 lbs.
Units Included
Building Address Nickname TKE Serial #
1185 Market St PASSENGER US276527
Description of Work
Misc
- This proposal now includes updates to Electrical, Fire Life Safety & Other (See Appendix #1) Controller
- Microprocessor Controller (Includes Options listed below) • 24 VDC Signal Voltage
• Auto Light and Fan Feature
• Car Independent Service
• Door Bypass Operation
• Electronic Door Detector Interface
• Hoistway Access and Enable
- Seismic Features
- Solid State Starters (6 or 12 leads) 208 VAC
- Battery Lowering in Controller
- eMax Monitoring Device Provisions
Power Unit & Valves (Retain)
Jack
- Packing
- Pipe Stands
Car
- 21" Toe guard (As needed)
- Cab Wiring Material
Hoistway
- Steel Tape with Mounting hardware, Selector and magnets (terminal limits included) - Wiring Package Includes single traveling cable, hoistway wiring, interlock wiring, interlock connectors, and serial wiring.
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 3
Pit
- Pit Stop Switch
Cab (Retain)
Door Equipment
- Micro Light (Front)
- LD-16 Plus Drive Only (FRONT)
• includes Car Top Inspection station (w/ alarm signal) Car Fixtures
- Main Car Station Includes Options Below
- • Swing Return (Mini-Swing (Column type) for New/Existing Dover/tkE Cabs) - Reuse Back Box
- Vandal Resistant Floor Buttons
- Debranded Car Station (No Logo)
- Cast Braille Plates for Car Features
- Standard Key Switch Package
• Fan
• Light
• Independent
• Stop
• Inspection/Hoistway Enable)
- Emergency Light mounted in COP
- 2004 and later Fire Service Phase II Features (includes instructions signage) - Handicap Signal (Passing signal)
- Position Indicator (2" CE Segmented)
- ADA Phone System integral with COP (Rath)
- Speaker Pattern for Intercom System/ADA Phone
- Locked Service Cabinet
- Certificate Window
- Default Engravings
- GFI Outlet
- #4 Stainless Steel Finish (441)
- Emergency Light Test Button (constant pressure)
Hall Fixtures
- Fire Service Phase I Key Switch
- Fire Service Phase I Engraved Instructions
- Hoistway Access Switch (in Hall Station)
- Hoistway Jamb Braille (Pair of Standard) (# of Floors) - Car Identification Plate for Main Egress Floor (Section 2.29) - Fusion Hall Lanterns (Standard) White Up/Down LED's #4 S/S (304) - Terminal Hall Stations (Surface Mounted) with
• Appendix O (Polycarbonate insert flame with engraved verbiage) • Fusion (#4 S/S (304))
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 4
1. Key Tasks and Approximate Lead Times
Key Tasks to be performed to be performed by Purchaser prior to equipment fabrication:
a. Execution of this Proposal
b. Payment for pre-production and engineering
c. Approval of layout (if applicable)
d. Execution of TK Elevator's Material Release Form
Approximate Durations/Lead Times
Contract execution
(can run concurrently with layout drawing package preparation and approval) Varies
Survey and Order of Materials (additional time required for cab, signal, entrance preparation and approval, if applicable)
4 - 6 Weeks
Fabrication time
(from receipt of all approvals, fully executed contract, Material Release Form and initial progress payment) 11 Weeks
Crew Scheduling Varies
Modernization of elevator system (Per Unit):
(Upon completion of all required preparatory work by others) 3 - 5 Weeks
The durations or lead times listed above are strictly approximations that can vary due to factors both within and outside of TK Elevator's control, are subject to change without notice to Purchaser and shall not be binding on TK Elevator.
2. Payment Terms
50% of the price set forth in this Proposal as modified by options selected from the section entitled “Value Engineering Opportunities & Alternates” (if applicable) will be due and payable as an initial progress payment within 30 days from TK Elevator's receipt of a fully executed copy of this Proposal. This initial progress payment will be applied to project management, permits, engineering and shop drawings, submittals, and drilling mobilizations (if required). The material will not be ordered until this payment is received, and the parties have both executed this Proposal and the Material Release Form.
25% of the price set forth in this Proposal as modified by options selected from the section entitled “Value Engineering Opportunities & Alternates” (if applicable) shall be due and payable when the material described above has been furnished. Material is considered furnished when it has been received at the jobsite or TK Elevator staging facility. Supporting documentation of materials stored shall be limited to stored materials certificates of insurance and bills of lading. Receipt of this payment is required prior to mobilization of labor. 25% of the price set forth in this Proposal shall be made as progress payments throughout the life of the project. In the event TK Elevator fails to receive payment within thirty (30) days of the date of a corresponding invoice, TK Elevator reserves the right to demobilize until such a time that the payments have been brought up to date, and TK Elevator has the available manpower.
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 5
It is agreed that there will be no withholding of retainage from any billing and by the customer from any payment.
The payment terms breakdown above shall be considered the Schedule of Values for the project as written. Billing shall be submitted on or before the 25th day of the month according to the payment schedule above and accompanied by a form of G702-703 pay application/schedule of values and a conditional waiver, the format of which is hereby acknowledged and accepted.
The use of online Portals for the submission of billing shall follow the terms of the Proposal and Customer agrees to permit billing in accordance with the executed contract terms. Portal access and usage is to be provided free of additional charge to TK Elevator and any additional cost for such use is to be reimbursed to TK Elevator via a reimbursable change order immediately upon acceptance.
Purchaser agrees that TK Elevator shall have no obligation to complete any steps necessary to provide Purchaser with full use and operation of the installed equipment until such time as TK Elevator has been paid 100% both of the price reflected in this Proposal and for any other work performed by TK Elevator or its subcontractors in furtherance of this Proposal. Purchaser agrees to waive any and all claims to the turnover and/or use of that equipment until such time as those amounts are paid in full.
Proposal price: $144,850.00
Initial progress payment: (50%) $72,425.00
Material furnished: (25%) $36,212.50
Total of remaining progress
payments:
(25%) $36,212.50
Any work that Purchaser may require prior to turnover of the equipment that is outside of the scope described in this Proposal - other than Temporary Use as described below - will be performed only after the full execution of a mutually agreeable change order and only at the following rates:
Mechanic (Standard) per hour $380.00
Mechanic (OT) per hour $641.00
Team (Standard) per hour $684.00
Team (OT) per hour $1,154.00
Rates are not inclusive of any per diem, mileage or other expenses which may be dependent on jobsite location.
3. Warranty
TK Elevator warrants any equipment it installs as described in this Proposal against defects in material and workmanship for a period of one (1) year from the date of Purchaser’s execution of TK Elevator's “Final Acceptance Form” on the express conditions that all payments made under this Proposal and any mutually agreed-to change orders have been made in full and that such equipment is currently being serviced by TK Elevator. In the event that TK Elevator's work is delayed for a period greater than six (6) months, the warranty shall be reduced by the amount of
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 6
the delay. This warranty is in lieu of any other warranty or liability for defects. TK Elevator makes no warranty of merchantability and no warranties which extend beyond the description in this Proposal, nor are there any other warranties, expressed or implied, by operation of law or otherwise. Like any piece of fine machinery, the equipment described in this Proposal should be periodically inspected, lubricated, and adjusted by competent personnel. This warranty is not intended to supplant normal maintenance service and shall not be construed to mean that TK Elevator will provide free service for periodic examination, lubrication, or adjustment, nor will TK Elevator correct, without a charge, breakage, maladjustments, or other trouble arising from normal wear and tear or abuse, misuse, improper or inadequate maintenance, or any other causes other than defective material or workmanship. In order to make a warranty claim, Purchaser must give TK Elevator prompt written notice at the address listed on the cover page of this Proposal and provided all payments due under the terms of this Proposal and any mutually agreed to written change orders have been made in full, TK Elevator shall, at its own expense, correct any proven defect by repair or replacement. TK Elevator will not, under any circumstances, reimburse Purchaser for cost of work done by others, nor shall TK Elevator be responsible for the performance of any equipment that has been the subject of service, repair, replacement, revisions or alterations by others. If there is more than one (1) unit which is the subject of work described in this Proposal, this section shall apply separately to each unit as accepted.
4. Preventative Maintenance Program
This Proposal does not include any maintenance, service, repair or replacement of the equipment or any other work not expressly described herein. TK Elevator may submit a separate proposal to Purchaser covering the maintenance and repair of this equipment to be supplied to Purchaser at an additional cost. In the event the Purchaser and TK Elevator have a new or existing maintenance Agreement in effect at the time of the acceptance of this proposal and/or during the scope of this work, the terms of the Agreement shall remain in full force and effect throughout the performance of this scope of work and continue throughout the duration of the stated term in that Agreement.
5. Work Not Included
There are certain items that are not included in this Proposal, many of which must be completed by Purchaser prior to and as a condition precedent to TK Elevator's performance of its work as described in this Proposal. In order to ensure a successful completion of this project, it shall be solely Purchaser’s responsibility to coordinate its own completion of those items with TK Elevator. The following is a list of those items that are not included in this Proposal:
A. Hoistways and Equipment Rooms
1. Purchaser shall provide the following:
a. A dry legal hoistway, properly framed and enclosed, and including a pit of proper depth and overhead. This is to include steel safety beam, inspection or access platforms, access doors, sump pump, lights, waterproofing and venting as required; dewatering of pit(s) and required permanent screening/ b. A dry legal machine/control room, with clear rollable access adequate for the elevator equipment, including floors, trap doors, properly sized legal machine room doors, gratings, machine room or roof access platforms, roof/loading protection, ladders, railings, foundations, all hoist beams, lighting, ventilation sized per the TK Elevator shop drawings and/or code requirements. Purchaser must maintain machine/control room (or machine/control space within the shaft for MRL equipment) temperature between 55 and 90 degrees Fahrenheit, with relative humidity less than 95% non-condensing at all times. c. Adequate bracing of entrance frames to prevent distortion during wall construction.
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 7
d. All grouting, fire caulking, cutting, x-ray and removal of walls and floors, patching, coring, setting of sleeves/knockouts, penetrations and painting (except as specified) and removal of obstructions required for elevator work; along with all proper trenching and backfilling for any underground piping and/or conduit. e. All labor and materials necessary to support the full width of the hoistway at each landing for anchoring or welding TK Elevator sill supports, steel angles, sill recesses; f. The furnishing, installing and maintaining of the required fire rating of elevator hoistway walls, including the penetration of firewall by elevator fixture boxes;
g. Ensuring that the elevator hoistways and pits are dewatered, cleaned and properly waterproofed; B. Electrical and Life Safety:
1. Purchaser shall provide a dedicated, analog telephone or data line to the elevator telephone or communication device; one additional data line per group of elevators for diagnostic capability wired to designated controller;
2. Purchaser shall provide the following:
a. suitable connections from the power main to each controller and signal equipment feeders as required, including necessary circuit breakers and fused mainline disconnect switches per N.E.C. prior to installation.
Suitable power supply capable of operating the new elevator equipment under all conditions; b. piping and wiring to controller for mainline power, car lighting, and any other building systems that interface with the elevator controls per N.E.C. Articles 620-22 and 620-51; c. any required hoistway / wellway, machine room, pit lighting and/or 110v service outlets; d. conduit and wiring for remote panels to the elevator machine room(s) and between panels. Remote panels required by local jurisdictions are not included in this proposal; e. a bonded ground wire, properly sized, from the elevator controller(s) to the primary building ground; and all remote wiring to the outside alarm bell as requested by all applicable code provisions; f. installed sprinklers, smoke/heat detectors on each floor, machine room and hoistways / wellways, shunt trip devices (not self-resetting) and access panels as may be required as well as normally open dry contacts for smoke/heat sensors, which shall be terminated by Purchaser at a properly marked terminal in the elevator controller;
g. a means to automatically disconnect the main line and the emergency power supply to the elevator prior to the application of water in the elevator machine room that shall not be self-resetting; h. emergency power supply including automatic time delay transfer switch and auxiliary contacts with wiring to the designated elevator controller and along with electrical cross connections between elevator machine rooms for emergency power purposes;
i. the following emergency power provisions are not included: interface in controller, pre-testing and testing, emergency power keyswitches;
j. emergency power operation is included as part of the design of the elevator control system and based on each car in the group only, to properly sequence, one at a time to the programmed landing, and park. The design requires that the generator, transfer switch, and related circuitry are sufficient to run this function or any other function for any building other system that is associated with this project. In the event that the generator, transfer switch, and related circuitry are not sufficient, TK Elevator will provide Purchaser with a written change order for Purchaser’s execution.
k. a dry set of contacts which close 20 seconds prior to the transfer from normal power to emergency power or from emergency power to normal power whether in test mode or normal operating conditions in the event that an emergency power supply will be provided for the elevator; l. confirmation that the emergency standby power generator and/or building can accept the power generated to and from the elevator during both Hi-Speed and Deceleration. In cases where the generator and/or building load is not electrically sized to handle the power return from the regen drive, additional separate chopper and resistor
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 8
units are available for purchase but not included in this proposal. The additional chopper and resistor units allow regenerated power to be dissipated in the resistor bank and not sent back into the building grid.
C. Miscellaneous:
1. Purchaser shall provide all work relating to the finished cab flooring including, but not limited to, the provision of materials and its installation to comply with all applicable codes;
2. Hydraulic jack replacement:
a. the excavation of the elevator cylinder well hole in the event drilling is necessary through soil that is not free from rock, sand, water, building construction members and obstructions. Should obstructions be encountered, TK Elevator will proceed only after written authorization has been received from the Purchaser. The contract price shall be increased by the amount of additional labor at TK Elevator's standard labor rates as per the local office along with any additional expenses and materials required; b. adequate ingress and egress, including ramping, for rail-mounted or truck-mounted drill rig; c. Purchaser is responsible for pumping truck contractor to remove and dispose of spoils from the site. In the event that unforeseen and unfavorable below ground conditions are encountered, including but not limited to concrete around the cylinder, construction debris, adverse water and/or soil conditions, erosion, cavitations, oil contamination, or circumstances necessitating increased hole depth, etc., which require the employment of specialized contractors, TK Elevator shall immediately advise the Purchaser and costs will be extra to the contract;
d. in ground protection systems other than TK Elevator's standard HDPE or PVC protection system with bottomless corrugated steel casing;
e. any required trenching and backfilling for underground piping or casings, and conduit as well as any compaction, grouting, and waterproofing of block-out;
f. engineering, provision and installation of methane barriers or coordination/access; g. access to 2" pressurized water supply within 100'-0" of the jack hole location; h. a safe, accessible storage area for placement of D.O.T. 55 gallon containers for the purpose of spoils containment; obtaining of local environmental or disposal permits i. any spoils or water testing;
6. Working Hours, Logistics and Mobilization
a. All work described in this Proposal shall be performed during TK Elevator's regular working days – defined as Monday thru Friday and excluding IUEC recognized holidays – and regular working hours – defined as those hours regularly worked by TK Elevator modernization mechanics at the TK Elevator branch office that will provide labor associated with the performance of the work described in this Proposal - unless otherwise specified and agreed to in writing by both TK Elevator and Purchaser (hereinafter TK Elevator's regular working days and regular working hours shall be collectively defined as “normal working hours”). TK Elevator shall be provided with uninterrupted access to the elevator hoistway and machine room areas to perform work during normal working hours.
b. Purchaser shall provide on-site parking to all TK Elevator personnel at no additional cost to TK Elevator. c. Purchaser shall provide traffic control, lane closures, permits and flagmen to allow suitable access/unload of tractor trailer(s).
d. Purchaser agrees to provide unobstructed tractor-trailer access and roll-able access from the unloading area to the elevator or escalator hoistways or wellways (as applicable). e. Purchaser will be required to sign off on the Material Release Form, which will indicate the requested delivery date of equipment to the site. If Purchaser is not ready to accept delivery of the equipment within ten (10) business days of the agreed upon date, Purchaser will immediately make payments due for equipment and
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 9
designate an area adjacent to the elevator shaft where Purchaser will accept delivery. If Purchaser fails to provide this location or a mutually agreeable alternative, TK Elevator is authorized to warehouse the equipment at the TK Elevator warehouse or designated distribution facility at Purchaser's risk and expense. Purchaser shall reimburse TK Elevator for all costs due to extra handling and warehousing. Storage beyond ten (10) business days will be assessed at a rate of $100.00 per calendar day for each unit listed in this Proposal, which covers storage and insurance of the elevator equipment and is payable prior to delivery. f. Purchaser agrees to provide a dry and secure area adjacent to the hoistway(s) at the ground level for storage of the elevator equipment and tools within ten (10) business days from receipt at the local TK Elevator warehouse.
Any warranties provided by TK Elevator for vertical transportation equipment will become null and void if equipment is stored in any manner other than a dry, enclosed building structure. Any relocation of the equipment as directed by Purchaser after initial delivery will be at Purchaser's expense. g. TK Elevator includes one mobilization to the jobsite. A mobilization fee of $5,000.00 per crew per occurrence will be charged for pulling off the job or for any delays caused by others once material has been delivered and TK Elevator's work has commenced.
h. Access for this project shall be free and clear of any obstructions. A forklift for unloading and staging material shall also be provided by Purchaser at no additional cost. i. Purchaser shall provide an on-site dumpster. TK Elevator will be responsible for cleanup of elevator/ escalator packaging material; however, composite cleanup participation is not included in this Proposal. j. The hiring of a disposal company which MUST be discussed prior to any material being ordered or work being scheduled. TK Elevator will provide environmental services ONLY if this is specifically included under the "Scope of Work" section above. TK Elevator assumes no responsibility and/or liability in any way whatsoever for spoils or other contamination that may be present as a result of the cylinder breach and/or other conditions present on the work site.
k. One or more of the units described in this Proposal will be out of service and unavailable to move passengers and/or property during entire duration of the performance of the work described in this Proposal until re-certified by the applicable authority(ies) having jurisdiction and in good standing with payment schedules. l. If site specific rules and regulations classify the elevator pit as confined space, elevator pits will need to reclassify a permit-required space to a non-permit required space prior to mobilization.
7. Temporary Use, Inspection and Turnover
a. Unless required by specification, TK Elevator will not provide for “temporary use” of the elevator(s) described in this Proposal prior to completion and acceptance of the complete installation. Temporary use shall be agreed to via a change order to this Proposal which shall require Purchaser’s execution of TK Elevator's standard Temporary Use Agreement. Cost for temporary use of an elevator shall be $200.00 per calendar day per hydraulic elevator and $250.00 per calendar day for each traction elevator for rental use only, excluding personnel to operate. All labor and parts, including callbacks required during the temporary use period will be billed at TK Elevator's standard local billing rates. In the event that an elevator must be provided for temporary use, TK Elevator will require 30 days to perform final adjustments and re-inspection after the elevator has been returned to TK Elevator with all protection, intercoms and temporary signage removed. This duration does not include any provisions for finish work or for repairs of same, which shall be addressed on a project-by-project basis. Cost for preparation of controls for temporary use, refurbishment due to normal wear and tear, readjustment and re-inspection is $5,000.00 per elevator up to 10 floors. For projects above 10 stops, an additional cost of $1,500.00 / 10 floors shall apply. These costs are based on work performed during normal working hours. Temporary use excludes vandalism or misuse. Any required signage, communication devices, elevator operators, and protection are not included while temporary use is being provided. All overtime premiums for repairs during the temporary use period will be billed at TK Elevator's local service billing rates.
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 10
b. The Proposal price set forth above includes one (1) inspection per unit by the applicable authority having jurisdiction if required by the government of the locality where the equipment is located. In the event the equipment fails that inspection due to no fault of TK Elevator, TK Elevator will charge Purchaser for both the cost of each re-inspection which shall be $1,500.00 and a remobilization fee which shall be $5,000.00 via change order prior to scheduling a re-inspection.
c. Upon notice from TK Elevator that the installation and/or modernization of the equipment is complete, Purchaser will arrange to have present at the jobsite a person authorized to make the final inspection and to execute TK Elevator's “Final Acceptance Form.“ The date and time that such person will be present at the site shall be mutually agreed upon but shall not be more than ten (10) business days after the date of TK Elevator's notice of completion to Purchaser unless both TK Elevator and Purchaser agree to an extension of that ten (10) day period in writing. Such final inspection and execution of TK Elevator's “Final Acceptance Form” shall not be unreasonably delayed or withheld.
d. Should the Purchaser or the local authority having jurisdiction require TK Elevator's presence at the inspection of equipment installed by others in conjunction with the work described in this Proposal, Purchaser agrees to compensate TK Elevator for its time at TK Elevator's current billing rate as posted at its local office. e. At the conclusion of its work, TK Elevator will remove all equipment and unused or removed materials from the project site and leave its work area in a condition that, in TK Elevator's sole opinion, is neat and clean. f. Purchaser agrees to accept a live demonstration of equipment’s owner-controlled features in lieu of any maintenance training required in the bid specifications. g. Purchaser agrees to accept TK Elevator's standard owner’s manual in lieu of any maintenance, or any other, manual(s) required in the bid specifications.
8. MAX
MAX is a cloud based Internet of Things (IoT) platform that we, at our election, may connect to your elevators and escalators by means of installation of a remote-monitoring device or modem (each a “device”). MAX will analyze the unique signal output of your equipment 24/7 and when existing or potential outages are identified, MAX will automatically communicate with our dispatch centers. When appropriate, the dispatch center will alert our technicians during normal working hours. These MAX alerts provide the technician with precise diagnostics detail, which greatly enhances our ability to fix your equipment right the first time, MAXimizing the equipment uptime. a. Purchaser authorizes TK Elevator and its employees to access purchaser’s premises to install, maintain and/or repair the devices and, upon termination of the service agreement, to remove the same from the premises if we elect to remove.
b. TK Elevator is and shall remain the sole owner of the devices and the data communicated to us by the devices. The devices shall not become fixtures and are intended to reside where they are installed. TK Elevator may remove the devices and cease all data collection and analysis at any time. c. If the service agreement between TK Elevator and Purchaser is terminated for any reason, TK Elevator will automatically deactivate the data collection, terminate the device software and all raw data previously received from the device will be removed and/or expunged or destroyed. d. Purchaser consents to the installation of the devices in your elevators and to the collection, maintenance, use, expungement and destruction of the daily elevator data as set forth in this agreement. e. The devices installed by TK Elevator contain trade secrets belonging to us and are installed for the use and benefit of our personnel only.
f. Purchaser agrees not to permit purchaser personnel or any third parties to use, access, tamper with, relocate, copy, disclose, alter, destroy, disassemble or reverse engineer the device while it is located on purchaser’s premises.
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 11
g. The installation of this equipment shall not confer any rights or operate as an assignment or license to you of any patents, copyrights or trade secrets with respect to the equipment and/or any software contained or imbedded therein or utilized in connection with the collection, monitoring and/or analysis of data.
9. Additional Terms and Conditions
a. In no event shall TK Elevator be responsible for liquidated, consequential, indirect, incidental, exemplary, and special damages associated with the work described in this Proposal. b. This Proposal is made without regard to compliance with any special purchasing, manufacturing or construction/installation requirements including, but not limited to, any socio-economic programs, such as small business programs, minority or woman owned business enterprise programs, or local preferences, any restrictive sourcing programs, such as Buy American Act, or any other similar local, state or federal procurement regulations or laws that would affect the cost of performance. Should any such requirements be applicable to the work described in this Proposal, TK Elevator reserves the right to modify this Proposal or rescind it altogether. c. TK Elevator is an equal opportunity employer.
d. TK Elevator's performance of the work described in this Proposal is contingent upon Purchaser furnishing TK Elevator with any and all necessary permission or priority required under the terms and conditions of government regulations affecting the acceptance of this Proposal or the manufacture, delivery or installation of the equipment. All applicable sales and use taxes, permit fees and licenses imposed upon TK Elevator as of the date of the Proposal are included in the price of the Proposal. Purchaser is responsible for any additional applicable sales and use taxes, permit fees and licenses imposed upon TK Elevator after the date of the Proposal or as a result of any law enacted after the date of the Proposal. e. All taxes, tariffs, duties, permit and/or license fees imposed upon TK Elevator as of the date of the execution of this Proposal are included in the price of the Proposal. After the date of acceptance of this Proposal and in addition to the Proposal price, Purchaser is also responsible to pay TK Elevator for any new (or any increase in):
(1) applicable taxes, tariffs, duties, permit and/or license fees; (2) charges from its suppliers for any of the applicable materials and/or components: (A) due to supply chain issues, the imposition of new or increased taxes, tariffs, or other charges by applicable governmental authorities; (B) if the release of materials called for in this Proposal occurs after the mileston mentioned earlier in this Proposal; and/or (C) if the completion of work called for in this Proposal occurs after the milestone mentioned earlier in this Proposal; and/or (3) charges from TK Elevator's shippers and/or freight forwarders.
f. Purchaser agrees to provide TK Elevator's personnel with a safe place in which to work and TK Elevator reserves the right to discontinue work at the jobsite whenever, in TK Elevator's sole opinion, this provision is being violated.
g. The pricing set forth in this Proposal assumes that the elevator pits will not be classified as a confined space.
TK Elevator will follow its standard safety policy and procedures. Any job specific safety requirements over and above TK Elevator's standard practices and policies may require additional costs. h. TK Elevator will furnish and install all equipment in accordance with the terms, conditions, scope and equipment nomenclature as noted herein. Requested changes or modifications to such provisions will require a written change order issued on the Purchaser’s letterhead and accepted by TK Elevator in writing prior to the execution of such work. This change order shall detail the current contract price, the amount of the change, and new contract value.
i. This Proposal does not include a schedule for the work described and any such schedule shall be mutually agreed upon by an authorized representative of both TK Elevator and Purchaser in writing before becoming effective.
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 12
j. In the event asbestos material is knowingly or unknowingly removed or disturbed in any manner at the jobsite, Purchaser shall monitor TK Elevator's work place and prior to and during TK Elevator's manning of the job, Purchaser shall certify that asbestos in the environment does not exceed .01 fibers per cc as tested by NIOSH 7400. In the event TK Elevator's employees or those of TK Elevator's subcontractors are exposed to an asbestos hazard, PCP’s, lead or other hazardous substances, Purchaser agrees, to the fullest extent permitted by law, to indemnify, defend, and hold TK Elevator harmless from all damages, claims, suits, expenses, and payments resulting from such exposure. Identification, notification, removal and disposal of asbestos containing material, PCP’s lead or other hazardous substances are the responsibility of the Purchaser. k. TK Elevator retains title to and a security interest in all equipment it supplies – which TK Elevator and Purchaser agree can be removed without material injury to the real property – until all payments including deferred payments and any extensions thereof, are made. In the event of any default by Purchaser on any payment, or any other provision of this Proposal, TK Elevator may take immediate possession of the equipment and enter upon the premises where it is located – without legal process – and remove such equipment or portions thereof, irrespective of the matter of its attachment to the real estate or the sale, mortgage or lease of the real estate. Pursuant to the Uniform Commercial Code, and at TK Elevator's request, Purchaser agrees to execute any financial or continuation statements which may be necessary for TK Elevator to file in public offices in order to perfect TK Elevator's security interest in such equipment. l. TK Elevator reserves the right to assign payments owed to TK Elevator under this Proposal. m. TK Elevator shall not be liable for any loss, damage or delay caused by acts of government, labor troubles, strikes, lockouts, fire, explosion, theft, floods, riot, civil commotion, war, malicious mischief, acts of God or any cause beyond its control.
n. The rights of TK Elevator under this Proposal shall be cumulative and the failure on the part of the TK Elevator to exercise any rights hereunder shall not operate to forfeit or waive any of said rights. Any extension, indulgence or change by TK Elevator in the method, mode or manner or payment or any of its other rights shall not be construed as a waiver of any of its rights under this Proposal. o. In the event TK Elevator engages a third party to enforce the terms of this Proposal, and/or to collect payment due hereunder, either with or without suit, Purchaser agrees to pay all costs thereof together with reasonable attorney’s fees. Purchaser does hereby waive trial by jury and does hereby consent to the venue of any proceeding or lawsuit under this Proposal to be in the county where the work covered by this Proposal is located. p. TK Elevator can furnish Certificate of Workers’ Compensation, Bodily Injury and Property Damage Liability Insurance coverage to Purchaser upon written request.
q. Should loss of or damage to TK Elevator's material, tools or work occur at the project site, Purchaser shall compensate TK Elevator for such loss, unless such loss or damage results from TK Elevator's own acts or omissions.
r. Purchaser, in consideration of TK Elevator performing the services set forth in this Proposal, to the fullest extent permitted by law expressly agrees to indemnify, defend, save harmless, discharge, release and forever acquit TK Elevator Corporation, TK Elevator Manufacturing, Inc., their respective employees, officers, agents, insurers, affiliates, and subsidiaries (hereinafter singularly a “TK Elevator party“ and collectively the “TK Elevator parties“) from and against any and all claims, demands, suits, and proceedings for loss, property damage (including damage to the equipment which is the subject matter of this Proposal), personal injury or death that are alleged to either have arisen out of or be connected with the sale, marketing, presence, use, misuse, maintenance, installation, removal, modernization, manufacture, design, operation or condition of the equipment that is the subject matter of this Proposal or the labor and materials furnished in connection with this Proposal. Purchaser’s duty to indemnify a TK Elevator party does not apply to the extent that the loss, property damage (including damage to the equipment which is the subject matter of this Proposal), personal injury or death is determined to be caused by or resulting from the negligence of that TK Elevator party. Purchaser recognizes that its obligation to defend the TK Elevator parties under this clause, which is separate and apart
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 13
from its duty to indemnify the TK Elevator parties, includes payment of all attorneys’ fees, court costs, judgments, settlements, interest and any other expenses of litigation arising out of such claims, demands, suits or proceedings.
s. Purchaser further expressly agrees to name Tk Elevator Corporation and TK Elevator Manufacturing, Inc. along with their respective officers, agents, affiliates and subsidiaries as additional insureds in Purchaser’s liability and any excess (umbrella) liability insurance policy(ies). Such insurance must insure TK Elevator Corporation and TK Elevator Manufacturing, Inc. for those claims and/or losses referenced in the above paragraph and those claims and/or or losses arising from the negligence of TK Elevator Corporation and TK Elevator Manufacturing, Inc. Such insurance must specify that its coverage is primary and non-contributory. Purchaser hereby waives its right of subrogation.
t. TK Elevator's participation in any controlled insurance program is expressly conditioned upon review and approval of all controlled insurance program information and documentation prior to enrollment. Any insurance credits if applicable, will be provided at that time.
u. Unless so mutually agreed upon in a separate signed agreement, TK Elevator shall not be required to interact or correspond with any third party with whom Subcontractor is not in privity of contract concerning matters pertinent to this Agreement.
v. The Purchaser must inform TK Elevator if Purchaser is, or becomes, an individual or entity that is - or that is majority owned or controlled by a party that is - included on any list of restricted parties maintained by (i) the United States of America; (ii) the United Nations; (iii) the European Union or any EU member state; (iv) the UK; or (v) any other national authority binding the parties of this contract.
In case the Purchaser, or any other beneficiary of this transaction, e.g. the end-user, is or becomes an individual or entity that is - or that is majority owned or controlled by a party that is - included on any list of restricted parties, TK Elevator reserves the right to cancel this Proposal immediately.
If the goods subject to this Proposal would be exported, re-exported, resold, used, transferred or otherwise disposed of in violation of any sanctions applicable to TK Elevator, TK Elevator also reserves the right to cancel this Proposal immediately. In this respect, the Purchaser shall be obliged to disclose the final delivery address, end-user and end-use of the goods upon request - insofar as legally permissible - and to notify TK Elevator of all circumstances that indicate an aforementioned infringement. "Sanctions" means here any economic, trade or financial sanctions, laws, regulations, embargoes or restrictive measures imposed, enacted, administered or enforced by any Sanctions Authority. "Sanctions Authority" means (i) the US;(ii) the UN Security Council;(iii) the EU and any EU member state;(iv) the UK; or(v) any governmental institutions of any of the foregoing which administer Sanctions, including HM Treasury, OFAC, the US State Department and the US Department of the Treasury.
10. Project Clarifications
a. For elevator modernization projects, each elevator cab will be weighed prior to the start of the modernization process of each individual unit. If the existing cabs are less or over 5% of the allowable weight and contracted capacity as noted on the original crosshead data tag and/or the elevators are out of balance, any additional scope of work to make code compliant will be determined on an elevator by elevator case basis and a change order for this work will proposed accordingly. In addition, TK Elevator will not be responsible for any building structural items due to elevator exceeding the 5% allowable weight nor the under-sizing of the equipment proposed using the crosshead data tag information. Should additional or higher-rated equipment be required due to a discrepancy in the actual vs. car top crosshead data tag, additional cost may apply and will be provided via change order.
b. The rails and Power Unit shall be retained. If any work is required on retained equipment, a change order will be provided detailing additional required scope and pricing.
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 14
c. The following related work is included in the proposal: Update to Electrical, Fire Life Safety & Other. See Appendix #1 for Scope of work included. If any additional work required beyond this scope, a change order will be provided detailing additional required scope and pricing.
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 15
Appendix #1 – Scope of Work included – Electrical
Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024
16 Modernization Proposal
2024-2-1650648 | ACIA-26LO42L | June 10, 2024 17
Acceptance Purchaser's acceptance of this Proposal and its approval by an authorized manager of TK Elevator will constitute exclusively and entirely the agreement between the parties for the goods and services herein described and full payment of the sum of One Hundred Forty Four Thousand Eight Hundred Fifty Dollars ($144,850.00) inclusive of all applicable sales and use taxes.
All other prior representations or regarding this work, whether written or verbal, will be deemed to be merged herein and no other changes in or additions to this Proposal will be recognized unless made in writing and properly executed by both parties as a change order. Should Purchaser's acceptance be in the form of a purchase order or other similar document, the provisions of this Proposal will exclusively govern the relationship of the parties with respect to this transaction. No agent or employee shall have the authority to waive or modify any of the terms of this Proposal without the prior written approval of an authorized TK Elevator manager.
City Of Yuba City
(Purchaser):
TK Elevator Corporation Management Approval
By: \s1 By: \s2
(Signature of Authorized Individual)
Anthony Brunson
_____________________________________________
(Print or Type Name)
_____________________________________________
(Print or Type Title)
(Signature of Branch Representative)
Robert Preston
Branch Manager
\d1\ \d2\
(Date of Acceptance) (Date of Execution)
Agenda Item 9
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Development Services Department
Presentation By: Ben Moody, Public Works & Development Services Director Summary
Subject: Consideration of an Amendment to the Staff Services Agreement between the City of Yuba City and the Sutter County Local Agency Formation Commission (Sutter LAFCO)
Recommendation: Authorize the Mayor to sign a First Amendment to the Staff Services Agreement between the City of Yuba City and Sutter LAFCO
Fiscal Impact: None. City incurred costs will be reimbursed by Sutter LAFCO per the Staff Services Agreement
Purpose:
To amend the existing Staff Services Agreement with Sutter LAFCO to provide for support personnel, as needed, to assist LAFCO Executive Officer, Doug Libby, in carrying out the duties of LAFCO.
Council’s Strategic Goal:
This item supports the “Enhance Partnerships” and “Fiscal Stability” goals of the Council.
Background:
On July 18, 2023, the City Council approved entering a Staff Services Agreement with the Sutter County Local Agency Formation Commission (Sutter LAFCO) to utilize Deputy Development Services Director, Doug Libby as the LAFCO Executive Officer. This Agreement was separately approved by the Sutter LAFCO Commission on July 13, 2023.
Relatedly, in July 2023, Sutter LAFCO entered into an agreement with Sutter County to utilize County Counsel as LAFCO Counsel and for the County to provide GIS services to Sutter LAFCO.
Analysis:
An amendment to the Staff Services Agreement is proposed to provide for support personnel, as needed, to the Executive Officer. Support will range from clerk duties to assistance processing LAFCO proposals. It is envisioned that Development Services staff will fill this role; however, the Agreement does not restrict the source of City staff support.
As part of preparing this amendment, in coordination with the City’s Human Resources Department,
meetings were held with impacted bargaining units (First Level Managers and Public Employees’ Union, Local 1/AFSCME 57), regarding duties and responsibilities related to LAFCO. As a result of these discussions, First Level Managers and Local 1 staff will provide services to support LAFCO under the direction of the Department Head.
LAFCO will continue to compensate the City at the latest adopted rates consisting of the fully burdened cost (salary, benefits, retirement contributions, etc.) that the City expends for employees.
Under the existing Agreement, LAFCO also pays the actual cost of delivery fees, postage, photocopying, mileage, etc. if City equipment or resources are used.
The existing agreement already provides that LAFCO will incur the cost to defend, hold harmless, and indemnify any claims made by a third party connected with the provisions of services, including claims under the California Government Claims Act naming or otherwise involving the Executive Officer or other person(s) providing services.
Additionally, the agreement specifies that Sutter LAFCO acknowledges that as an employee of the City, there may be circumstances where the Executive Officer, or any other support staff provided by City, may have a conflict. Such circumstances may arise when the City is also an applicant or directly affected by a reorganization affecting the City. Within the agreement, LAFCO expressly recognizes and agrees that personnel provided by the City may continue to work on items for the City even though they may be recused from providing services to Sutter LAFCO for a particular item, and LAFCO expressly waives any claims under such conflict. Finally, if the Executive Officer is required to recuse himself from a proposal, Sutter LAFCO is solely responsible for utilizing other resources to provide services as to the conflicted item.
The proposed amendment will be presented to Sutter LAFCO at its September 12, 2024, regular meeting.
Fiscal Impact:
None. Time spent toward by City staff on LAFCO duties will reduce salary impacts to the City General Fund.
Alternatives:
The City Council may decide not to enter into an amended Staff Services Agreement with Sutter County LAFCO.
Recommendation:
Authorize the Mayor to sign a First Amendment to the LAFCO Staff Services Agreement between the City of Yuba City and Sutter LAFCO.
Attachments:
1. Proposed Amendment
Prepared By: Submitted By:
Doug Libby, AICP
Deputy Development Services Director
Diana Langley
City Manager
01248.0005/984259.1 1
Attachment 1
01248.0005/984259.1 2
FIRST AMENDMENT TO THE LAFCO STAFF SERVICES AGREEMENT
(City of Yuba City)
This FIRST AMENDMENT TO THE LAFCO STAFF SERVICES AGREEMENT (“First Amendment”) is entered into effective this 12th day of September, 2024 by and between by and between the CITY of Yuba City (“CITY”), and the Sutter County Local Agency Formation Commission (“LAFCO”), both of which are public agencies.
RECITALS:
A. LAFCO and CITY entered into a certain LAFCO Staff Services Agreement (“Agreement”) dated July 13, 2023, regarding the provision of Executive Officer and staffing services by CITY to LAFCO. While it contemplated the use of support personnel, due to time constraints the Agreement reserved the issue to a future date.
B. The parties now desire to amend the Agreement to specifically address the provision of staffing services to support the Executive Officer, including the provision of said services on an as-needed basis as may be required, by entering into this First Amendment.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, LAFCO and CITY agree as follows:
1. Recitals: The foregoing recitals are true and correct and incorporated herein by reference.
2. Section 1(b): Section 1(b) of the Agreement is amended to read in its entirety as follows (additions underlined, deletions in strike through):
b. [Reserved -anticipated for future support personnel] Support Personnel. CITY shall make available CITY employees to serve as support personnel to the Executive Officer, who shall perform the duties as established by the Executive Officer consistent with applicable State and local law for LAFCO. LAFCO expressly acknowledges and agrees that any such support personnel shall remain solely as employees of CITY; will still have responsibility to provide services to CITY that may require the support personnel to balance performance of those services in their reasonable discretion; may result in flexible hours of work as set by the CITY; and the support personnel may be temporarily unavailable during vacation, sick leave, holidays, or other benefits provide by CITY to said support personnel.
3. Section 2 of the Agreement is amended to read in its entirety as follows (additions underlined, deletions in strike through):
2. CITY purposes proposes employee Doug Libby to provide services as the Executive Officer. LAFCO accepts the proposal and appoints Doug Libby as the Executive Officer. If Mr. Libby or any other appointed person providing Services under this Agreement resigns or is no longer employed CITY, the upon notification by CITY to LAFCO of the same, that person shall no longer by appointed by LAFCO for the purposes of this Agreement.
01248.0005/984259.1 3
4. Section 4: Section 4 of the Agreement is amended to read in its entirety as follows (additions underlined, deletions in strike through):
4. Compensation and Payment of Expenses. LAFCO shall pay CITY for Services at the latest adopted CITY rates (SEE EXHIBIT A), which are based on consisting of the fully-loaded cost (salary, benefits, retirement contributions, etc.) that CITY expends for the employee(s). LAFCO shall reimburse CITY for all reasonable expenses incurred in providing the Services. LAFCO shall also pay the following:
a. The cost of any fidelity or other bonds required by law for LAFCO. b. The cost to defend, hold harmless, and indemnify any claims made by a third party connected with the provision of Services, including claims under the California Government Claims Act naming or otherwise involving the Executive Officer or other person(s) providing Services.
c. If specifically requested or required by LAFCO, the costs of specialized training (such as annual conferences), membership in organizations, or other events (such as out-of-town meetings or travel), etc.
d. The actual cost of delivery fees, postage, photocopying, mileage, etc., if CITY equipment or resources are used.
5. Exhibit A: Exhibit “A” of the Agreement is deleted in its entirety.
6. Reaffirmation of Agreement: Except as amended by this First Amendment, the Agreement shall remain unchanged and is hereby reaffirmed, ratified and confirmed in its entirety. If there is any conflict, inconsistency or ambiguity between the Agreement and this First Amendment, then this First Amendment shall govern and control.
7. Entire Agreement: The Agreement, as amended by this First Amendment, constitutes the entire agreement and supersedes any prior written or oral agreements among the parties with respect to the specific matters addressed herein.
8. Execution in Counterparts: This First Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which shall be deemed but one and the same instrument, and a facsimile copy of such execution shall be deemed an original. [Signatures on next page]
01248.0005/984259.1 4
IN WITNESS WHEREOF, this First Amendment has been executed by LAFCO and the CITY as of the dates below.
CITY OF YUBA CITY, a municipal corporation
By:
Shon Harris, Mayor
Date: ________________________
ATTEST:
__________________________
Ciara Wakefield, Deputy City Clerk
APPROVED AS TO FORM:
Aleshire & Wynder
By:
Shannon Chaffin, City Attorney
SUTTER COUNTY LOCAL AGENCY
FORMATION COMMISSION
By: _________________________
Mat Conant, LAFCO Chair
Date: _____________________
APPROVED AS TO FORM
By: _________________________
William Vanasek
LAFCO Counsel
Agenda Item 10
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Public Works
Presentation By: Ben Moody, Public Works & Development Services Director Summary
Subject: WTP Alum Storage Tanks Replacement Project (Contract Award) Recommendation: Adopt a Resolution awarding a construction contract to Pacific River Construction of Roseville, CA in the amount of their total bid of $321,000.00 and authorizing the City Manager to execute the contract on behalf of the City, subject to review and approval as to legal form by the City Attorney Fiscal Impact: $377,175.00 – Total Project Cost
$321,000.00 - Contract Award Amount
$48,150.00 - Construction Contingency (15%)
$8,025.00 - City Administration (2.5%)
Purpose:
To maintain the City’s water treatment operational effectiveness through proactive rehabilitation and major maintenance.
Council's Strategic Goal:
This project addresses the City Council's Strategic Goal of improving the City's Infrastructure.
Background:
Aluminum Sulfate (Alum) is utilized in the water treatment process as a coagulant. Alum has been used as a coagulant in the City’s water treatment process since 1969 (original WTP construction). The Alum system consists of two storage tanks, various chemical conveyance pipelines, and pumps that feed the Alum into the treatment process at three points that include a raw water pipeline, raw water rapid mixer chamber, and the membrane filtration system flash mixer.
One of the Alum storage tanks is a 55-year-old rubber-lined steel tank with a capacity of 8,275 gallons.
The second Alum storage tank is a 25-year-old insulated high-density polyethylene (HDPE) tank with a capacity of 9,432 gallons. Both Alum tanks have reached their useful life expectancy, have damaged side walls that actively leak Alum into a secondary chemical spill containment area, and the exposed PVC piping and valving are at risk of failure due to age and ongoing exposure to the elements.
This project aims to replace both tanks with new 8,900-gallon HDPE tanks, tank plumbing, valves, and install new OSHA approved ladders, wind and seismic restraints, and other appurtenances as required
to complete the installation. Additionally, the 25-year-old concrete containment area will receive concrete repairs and a chemical resistant coating in order to maximize its 50-year life expectancy.
Analysis:
The WTP Alum Storage Tanks Replacement Project (Project) was advertised for bids beginning July 17, 2024. Plans and specifications were posted on publicpurchase.com and provided to local builder/contractor exchanges. On August 6, 2024, six (6) bids were received and opened by the City Clerk. A list of the bids received and the Engineer’s Estimate are shown below.
Company Total Bid
Pacific River Construction, Roseville $321,000.00
BWD General Engineering Contractors, Lincoln $333,600.00 Dos Rios, Inc., Colusa $338,264.91
Koch & Koch, Inc., Grass Valley $342,776.00
Swierstock Enterprise, Inc. dba Pro Builders, Orangevale $388,800.00 TNT Industrial Contractors, Inc., Sacramento $430,125.00
Engineer’s Estimate $406,000.00
Pacific River Construction of Roseville, CA is the low, responsible, and responsive bidder.
Staff is proposing a 15% construction contingency which equates to approximately $48,150.00 in contingency funds.
Contract administration, including construction management and inspection, will be performed by Public Works Department staff.
Fiscal Impact:
The estimated total project cost is approximately $377,175.00 which consists of the following components:
Construction Contract $321,000.00
Construction Contingency (15%) $48,150.00
City Administration (2.5%) $8,025.00
Total $377,175.00
The project will be funded through CIP Account No. 1324 (Alum Tank Replacement). There is approximately $800,000 in this account.
Environmental:
On September 19, 2023, City Council adopted a California Environmental Quality Act (CEQA) Class 1 Categorical Exemption. There has not been any substantial new information acquired nor changes to the project since it was evaluated, and no further evaluation for this portion of the project is required under CEQA.
Alternatives:
1. Reject all bids and rebid the project.
2. Provide other direction.
Attachments:
1. Resolution - WTP Alum Storage Tanks Replacement Project Prepared By: Submitted By:
Nick Menezes
Associate Civil Engineer
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO. _________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY AWARDING A
CONSTRUCTION CONTRACT TO PACIFIC RIVER CONSTRUCTION IN THE AMOUNT OF THEIR TOTAL BID OF $321,000.00 (WTP ALUM STORAGE TANKS
REPALCEMENT PROJECT)
WHEREAS, the City of Yuba City (City) advertised for bids for the City’s WTP Alum Storage Tanks Replacement Project (Project); and,
WHEREAS, in response to the advertisement, the City received six (6) bids for the Project in the following bid amounts:
Pacific River Construction, Roseville $321,000.00
BWD General Engineering Contractors, Lincoln $333,600.00 Dos Rios, Inc., Colusa $338,264.91
Koch & Koch, Inc., Grass Valley $342,776.00
Swierstock Enterprise, Inc. dba Pro Builders, Orangevale $388,800.00 TNT Industrial Contractors, Inc., Sacramento $430,125.00; and WHEREAS, the City Public Works Department reviewed the six (6) bids, and examined Pacific River Construction and its bid response, found it to be both the lowest qualified responsive and responsible bidder, and has recommended it for award of this project; and,
WHEREAS, the City desires to award the bid to Pacific River Construction of Roseville, CA and enter into an agreement with Pacific River Construction to construct the Project; and,
NOW, THEREFORE, be it resolved by the City Council of Yuba City as follows:
1. The City Council of the City of Yuba City does hereby accept the six (6) bids received as noted above, finds that Pacific River Construction is the lowest responsive and responsible bidder, and awards the construction contract to Pacific River Construction in the total amount bid of $321,000.00 for the WTP Alum Storage Tanks Replacement Project. Said contract agreement shall substantially comply with the terms and conditions presented in the draft agreement attached to this Resolution, shall be subjected to review and approval as to legal form by the City Attorney, and the City Manager shall be authorized to execute the same on behalf of the City of Yuba City.
2. The City Council adopted a Class 1 Categorical Exemption under CEQA Guidelines Section 15301. There has not been any substantial new information acquired nor changes to the project since it was evaluated, and no further evaluation for this portion of the project is required under CEQA.
The foregoing resolution was duly and regularly introduced, passed, and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on the 20th day of August, 2024.
AYES:
NOES:
ABSENT:
Shon Harris, Mayor
ATTEST:
Ciara Wakefield, City Clerk Administrator
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY:
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
Exhibit(s):
A. (Draft) Agreement – Pacific River Construction Contract No. 23-04
EXHIBIT A
CITY OF YUBA CITY
DEPARTMENT OF PUBLIC WORKS
CONTRACT AGREEMENT
WATER TREATMENT PLANT ALUMINUM SULFATE TANK REPLACEMENT
PROJECT
CONTRACT NO. 23-04
THIS AGREEMENT, made and concluded this ____ day of _________________ 2024, between the City of Yuba City, party of the first part, and ________________, Contractor, party of the second part.
ARTICLE I. – WITNESSETH, that for and in consideration of the payments and agreements hereinafter mentioned to be made and performed by the said party of the first part under the conditions expressed in the two bonds bearing even date with these presents and hereunto annexed, the said party of the second part agrees with the said party of the first part, at his own proper cost and expense, to do all the work and furnish all the materials, except such as are mentioned in the specifications to be furnished by said party of the first part, necessary to construct and complete in a good, workmanlike and substantial manner and to the satisfaction of the Department of Public Works, construction on various roads, all in accordance with the Special Provisions hereto annexed and also in accordance with the Standard Specifications of the State of California Department of Transportation dated May 2010, the Standard Plans dated May 2010, the “Labor Surcharge” and “Equipment Rental Rates” in effect on the date the work is accomplished, and the “General Prevailing Wage Rates” of the State of California Department of Transportation, which said Special Provisions, Standard Plans, Standard Specifications are hereby specially referred to and by such reference made a part hereof.
The Special Provisions and the project plans for the work to be done are entitled:
WATER TREATMENT PLANT ALUMINUM SULFATE TANK REPLACEMENT
PROJECT
CONTRACT NO. 23-04
Which are hereby made part of this contract.
ARTICLE II. – The said Contractor agrees to receive and accept the following prices as full compensation for furnishing all materials and for doing all the work contemplated and embraced in this Agreement; also for all loss or damage arising out of the nature of the work aforesaid, or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by the City of Yuba City and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work and for well and faithfully completing the work, and the whole thereof, in the manner and according to the plans and specifications and the requirements of the Engineer under them, to wit.
ARTICLE III. – The said party of the first part hereby promises and agrees with the said Contractor to employ, and does hereby employ, the said Contractor to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices hereinafter set forth, and hereby contracts to pay the same at the time, in the manner and upon the conditions above set forth; and the said parties for themselves, their heirs, executors, administrators, successors and assigns, do hereby agree to the full performance of the covenants herein contained.
ARTICLE IV. – By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers Compensation or to undertake selfinsurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract.
ARTICLE V. – It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith.
ARTICLE VI. – The City of Yuba City hereby employs Contractor to provide material and to do the work according to the terms and conditions herein contained and referred to for the following prices to be paid at the time, in the manner and upon the conditions hereinafter set forth.
ARTICLE VII. – The improvement contemplated in the performance of this contract is an improvement over which the City of Yuba City shall exercise general supervision.
ARTICLE VIII. – The statement of prevailing wages appearing in the General Prevailing Wage Rates is hereby specifically referred to and by this reference is made a part of this contract. It is further expressly agreed, by and between the terms of this instrument and the bid or proposal of said Contractor, that this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith.
WATER TREATMENT PLANT ALUMINUM SULFATE TANK REPLACEMENT
PROJECT
CONTRACT NO. 23-04
Item
No. Item Description Unit of Measure
Est.
Qty.
Item Price Total
Amount
1 Mobilization/Demobilization LS 1 $16,000.00 $16,000.00 2 Demolition (Includes demolition
of existing tanks, piping, valves,
concrete)
LS 1
$30,000.00 $30,000.00
3 Tanks (Includes furnishing and
installation of tanks, tank
appurtenances, anchors, and
LS 1
$120,000.00 $120,000.00
hardware)
4 Piping Improvements (Includes
furnishing and installation of all
piping, valves, and fittings)
LS 1
$15,000.00 $15,000.00
5 Pipe Stands and Racks
(Includes furnishing and
installation of all pipe supports,
racks, and hardware)
LS 1
$8,000.00 $8,000.00
6 Electrical Improvements
(Includes furnishing and
installation of all conduits, and
wire)
LS 1
$32,000.00 $32,000.00
7 Concrete Containment Area
Improvements (Includes
furnishing and installation of
rebar, grout, and concrete)
LS 1
$38,000.00 $38,000.00
8 Concrete Resistive Coating
(Includes furnishing, surface
prep, and installation)
LS 1
$60,000.00 $60,000.00
9 Startup & System Testing LS 1 $2,000.00 $2,000.00
TOTAL: $321,000.00
Approved as to form:
City Attorney
City of Yuba City
CITY OF YUBA CITY
Diana Langley
City Manager
Date
CONTRACTOR
Company Name
By and Title (signature)
Date
By and Title (printed)
Address
Telephone Number
Agenda Item 11
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Public Works
Presentation By: Ben Moody, Public Works & Development Services Director Summary
Subject: 2434 Butte House Road Extraterritorial Water Service Agreement Recommendation: Adopt a Resolution authorizing the City Manager to execute an extraterritorial service agreement with the property owner of 2434 Butte House Road, Rosa Elva Rojas Coss, for connection to City water service following approval as to legal form by the City Attorney
Fiscal Impact: Water connection fees payable by the property owner to the City estimated to be $19,969.87, plus monthly water usage fees.
Purpose:
To provide a Sutter County resident within the City’s Sphere of Influence with City water service.
Council's Strategic Goal:
This project addresses the City Council's Strategic Goals of improving the City's Infrastructure and providing services that serve and protect residents.
Background:
On June 18, 2024, the owners of 2434 Butte House Road, Rosa Elva Rojas Coss, inquired with City staff regarding options to connect to the City’s water service. The residents expressed adverse reactions to the water supplied by the well on site, and desired to connect to City water in hopes of avoiding these adverse effects. The owner desires to have the house connected to City water, but keep the existing well active for landscape and irrigation needs.
The property is located outside the current City limits, but is within the City’s Sphere of Influence. At the March 5, 2019 City Council meeting, policy was established to allow existing homes within the Sphere of Influence, but outside the City limits, to connect to City services if the parcel is willing to enter into an extraterritorial service agreement.
City staff have consulted with the residents of the property and discussed the process of connecting to the City’s water system. The owner was provided a quote for the fees associated with connecting to City water and is willing to pay the full connection fees. The owner is agreeable to signing an extraterritorial service agreement (Attachment 1, Exhibit A) and will also pay all construction costs to connect to City water. The agreement will establish guidelines for the connection to the City’s water
system, such as documenting any additional equipment needed for preventing a cross connection, the fees schedule, the terms of the agreement, etc.
Analysis:
The City maintains an existing 16-inch transmission line on Redding Ave. It will be the owner’s responsibility to connect to the existing transmission line by coordinating with a licensed plumber and through the City, to complete the water service installation from the existing transmission line to a new meter at the property line. All additional plumbing from the meter to the house will also be the owner’s responsibility.
The owner has an existing well on the property and will need to install a backflow regulator to ensure there is no cross contamination with the City’s water distribution system. The extraterritorial service agreement will require proper equipment to be installed and establish procedures if the area is annexed in the future.
Fiscal Impact:
Water connection fees payable by the property owner to the City are estimated to be $19,969.87, including fees for water service connection, extension, cellular meter, and service fees. The owner will also be assessed monthly usage fees based on the size of the meter installed in accordance with the City’s fee schedule.
Alternatives:
1. Do not approve the agreement for a water service connection. The owner would need to pursue other solutions to improve the well water.
2. Modify the terms of the agreement by providing direction to staff.
Attachments:
1. Resolution - 2434 Butte House Rd. Extraterritorial Water Service Agreement Prepared By: Submitted By:
Nick Menezes
Associate Civil Engineer
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO. _________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE AN EXTRATERRITORIAL SERVICE AGREEMENT WITH ROSA ELVA ROJAS COSS FOR THE PROPERTY LOCATED AT 2434
BUTTEHOUSE ROAD FOR CONNECTION TO CITY WATER SERVICES
WHEREAS, the property owner of 2434 Butte House Road has approached the City with a written request to connect to the City’s water system; and
WHEREAS, the property is located outside of the current City limits, but within the sphere of influence; and
WHEREAS, at the March 5, 2019 City Council meeting, policy was established, in coordination with Sutter LAFCO authorization, to allow existing homes within the sphere of influence, but outside City limits, to connect to City services if the parcel is willing to enter into an extraterritorial service agreement; and
WHEREAS, the property owner is informed of the required connection fees and terms of the extraterritorial service agreement (Exhibit A) and agreeable to entering into said agreement.
NOW, THEREFORE, the City Council of the City of Yuba City resolves as follows:
1. The City Council finds that all of the facts set forth in the recitals above are true and correct and incorporated herein.
2. The City Council hereby authorizes the City Manager to execute an extraterritorial service agreement with Rosa Elva Rojas Coss, owner of the property located at 2434 Butte House Road, for connection to City water service, following approval as to legal form by the City Attorney.
The foregoing resolution was duly and regularly introduced, passed, and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on the 20th day of August, 2024.
AYES:
NOES:
ABSENT:
_____________________________
Shon Harris, Mayor
ATTEST:
Ciara Wakefield, City Clerk Administrator
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY:
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
Exhibit “A” – Draft Extraterritorial Water Service Agreement
Extra Territorial Service and Infrastructure Agreement
-1-
Recording Requested by and
When Recorded Return to:
City Clerk
City of Yuba City
1201 Civic Center Blvd
Yuba City, CA 95993
NO FEE-Government Code §6103
(Space Above This Line for Recorder’s Office Use Only)
EXTRATERRITORIAL WATER SERVICE AGREEMENT
This EXTRATERRITORIAL WATER SERVICE AGREEMENT (“Agreement”) is made and entered into this ________ day ________, 2024 (the “Commencement Date”), by and between Rosa Elva Rojas Coss, (“Owner”), and the CITY OF YUBA CITY, a California municipal corporation (“City”).
RECITALS
A. Owner represents it has acquired lawful title to property identified by Sutter County Assessor’s Parcel Number 17-151-011, located at 2434 Butte House Road, Yuba City, CA, 95993 (the “Property”), as more particularly described in Exhibit “A.” B. The Property is located outside of the incorporated boundaries of City within Sutter County, and neither Sutter County nor any other public agency currently provides water service to the Property. The Property is located within the City’s sphere of influence, but outside the City’s existing boundaries.
C. California Government Code § 56133(b) permits a City to provide new or extended services by agreement outside its jurisdictional boundaries but within its sphere of influence, in anticipation of a later change of organization, and with written approval from Sutter Local Agency Formation Commission (“LAFCO”), which may have previously been provided by resolution.
D. The City and Owner both agree it is not necessary for the Property to be annexed into the City at this time.
E. City currently owns and operates a water distribution system and storage tank which conveys potable water originating in its service area through the City’s transmission system. This water distribution system includes a 16-inch transmission main along Redding Ave terminating at Butte House Road. In response to a request by Owner, City recently produced a
Extra Territorial Service and Infrastructure Agreement
-2-
quote of the costs for connecting to the City’s water system and the Owner would like to connect to water service at Owner’s cost. The City’s water distribution system is referred to herein as “Distribution System.” The City’s water service line is referred to herein as “City Water Service Line.”
F. Owner has agreed to make payments described herein with respect to the water service for the Property in accordance with the fees and rates set by the City for its users, and to comply with City’s Municipal Code as may be amended from time to time, as more fully set forth herein.
G. This Agreement is intended to comply with LAFCO requirements for an extraterritorial water service agreement with City.
H. The City has identified options to provide water supply to the Owner to accommodate the Owner’s water demands at the Extraterritorial Property, provided the Owner meet certain conditions as set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto, agree as follows:
ARTICLE I. RIGHTS AND OBLIGATIONS
1. Recitals Incorporated. The recitals set forth above are true and correct and are hereby incorporated into and made a part of this Agreement.
2. Term, Ownership, and Effectiveness of Agreement: This Agreement shall become effective when executed by both parties hereto. The Agreement shall continue in perpetuity or until such time as the Property is annexed into the corporate boundaries of City. At such time, the Owner shall have such rights, privileges, and duties, including fees and rates, as all other City citizens for the then current water service classification. The City and Owner agree that should the City ultimately annex the Property in the future into the City, the Owner will not contest annexation. Owner intends that this Agreement shall constitute its written consent to the annexation of the lands described herein and shall bind its heirs, successors, grantees and/or assigns, and all persons having or acquiring any interest subsequent hereto in said lands, and shall constitute by this Agreement a covenant running with the land and binding upon said successors, grantees and/or assigns that they in fact consent to the annexation of said lands to City and shall execute whatever documentation as may be necessary and do all things required of them to effectuate the annexation at such time as City deems annexation to be in its best interest.
3. Location for Connection to City Water Distribution System. Owner and City acknowledge the nearest City municipal water distribution system to serve the Property will be at the Connection Point. The Connection Point is defined as the downstream side of the water meter. Connection to City’s Water Distribution System by Owner shall be made at this location.
Extra Territorial Service and Infrastructure Agreement
-3-
City shall connect, at Owner’s sole cost and expense, the service line from the City’s 16-inch Water Transmission Main on the Redding Avenue.
4. Metered Service Connection. The City will install a meter on Owner’s property.
The Owner will pay for installation, maintenance and repair of the meter, unless damaged by the City. All costs and expenses incident to any connection to the Water Distribution System from private property are to be borne by the property owner or water user, who shall indemnify the City from any loss or damage that may directly or indirectly be occasioned by the installation of water lines or appurtenances thereto.
5. New Water Service Line. Owner, at their sole expense and without reimbursement from the City, shall be required to install a water line as necessary to connect to the City’s Water Distribution System from the Property downstream from the meter. Owner shall represent, warrant, and covenant to the City that Owner completed all necessary construction/installation from the Property to the Connection Point (“New Water Service Line”) after receiving all respective County of Sutter and City permits and that the New Water Service Line was constructed in accordance with all respective laws and standards. Both the County of Sutter and the City have signed off on all permits for the construction of the New Water Service Line.
6. System Facilities. Owners shall be responsible for the operation, maintenance and repair of all components of the New Water Service Line downstream from the meter. Under no circumstances shall the City be required to maintain, repair or replace the New Water Service Line unless and until the City, at its sole discretion and option, accepts dedication of the water system or any portion thereof in increments at some future date. Any other water system installed by Owner on the Property connected to a well or other source of water not from the City’s Water Distribution System is not part of the New Water Service Line, and shall be private (“Private Water System”). It is the sole responsibility of Owner to repair, maintain, and replace all Private Water System, and City shall have no responsibility or liability for these Private Water System.
Owner shall obtain all necessary permits or other approvals necessary for constructing and connecting Owner’s Private Water System.
7. Disconnecting of Existing On-Site Private Water System(s). Owner shall disconnect all existing on-site Private Water System(s) on the Property per County standards, and any Private Water System shall be fully separated from and not connected to the City’s Water Distribution System and New Water Service Line effective as soon as the service line is extended from Redding Avenue to the Connection Point and the meter is installed. A backflow regulator shall be installed at Owner’s expense to ensure no future connections can contaminate the City’s Water Distribution System. Owner will be required to comply with City’s Municipal Code as may be amended from time to time. Owner shall not apply any water obtained from onsite wells to the City’s Water System.
8. No Representation Regarding Water Service, Pressure, or Volume For Any Private Water System. The Owner agrees that there is no guarantee, warranty, or other representation regarding water service, pressure, volume, or quality from the City or associated with water service from the City. This would include no guarantee, warranty or representation
Extra Territorial Service and Infrastructure Agreement
-4-
that the Owner or any other users on the Property will not have allergic or other reactions to the City’s water. The City specifically disclaims any kind of representation, warranty, or guaranty, of any private water system.
9. City to Provide Water Services. Upon Owner’s full and complete performance of all of Owner’s obligations and responsibilities under this Agreement and completion of construction of the City’s expansion of a 1-inch water line from the existing termination at Redding Avenue to the Connection Point, City agrees to provide Owner’s Property with water services from City’s Water Distribution System and Water Treatment Plant. City’s obligation to provide Owner’s Property with water services from City’s Water Distribution System is conditioned upon City and Owner obtaining the consent of all applicable governmental agencies.
As a condition to providing water service, City shall have the right of access to water meters, including any required irrigation meter(s), whether located on City-owned real property, New Water Service Line, or the Property. Owner shall promptly notify the City of any repairs or replacement of damaged water meters. The City shall respond to such notifications in a reasonable amount of time.
10. Obligations and Responsibilities of Owner to Pay for Municipal Utility Services Provided by City. Owner agrees to promptly pay to City any and all statutory and/or customary connection and service fees adopted by the City for users connecting to the City’s water system and related items, as well as any cost of construction of a water line to the Connection Point. A detailed quote with current fees can be found in Exhibit “B” attached hereto and incorporated by reference. Owner agrees to apply to City for a municipal utility water account, maintain its water municipal utility water service account with City in a current status and comply with – and be subject to – City’s Municipal Code, as subsequently updated or amended. Owner acknowledges and agrees that if the water bill is not paid on or before the 45th day after the bill was sent, service may be discontinued. A delinquency charge will be made and collected prior to renewing service following the discontinuance. Payments must be made prior to 8:30 a.m. on the scheduled discontinuance day. A payment drop box is available at the entrance of City Hall.
11. Inspection. City shall have the right to inspect and examine the Water Distribution System at any time, including during construction and operation of any portion of the New Water Service Line, and the right to access all water meters.
12. Indemnification of City: To the greatest extent allowed by law, Owner shall indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs, and damages (whether in contract, tort, or strict liability, including but not limited to personal injury, death at any time, and property damage) incurred by City, Owner or any other person, and from any and all claims, demands, liabilities, damages, and actions in law or equity (including attorney’s fees and litigation expenses incurred by City or held to be the liability of the City, including plaintiff’s attorneys’ fees if awarded), arising or alleged to have arisen directly or indirectly out of (a) the making of this Agreement; (b) the performance of this Agreement; (c) the performance of any or all work to be done in and upon the street rights-of-way, upon the Property or premises adjacent thereto pursuant to this Agreement; (d) arising or alleged to have arisen directly or indirectly in any way related to the design, construction, installation, maintenance and operation
Extra Territorial Service and Infrastructure Agreement
-5-
of City Water Distribution System or New Water Line by anyone occupying any portion of the Property, including, without limitation, any such claims, causes of action, damages, liabilities, fees, costs, expenses, and attorney fees arising from inadequate flow, blockage, backflow, water quality, etc. Owner’ obligations under the preceding sentence shall apply regardless of whether Owner or any of its officers, officials, employees, agents, or volunteers are passively negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs, or damages caused by the active or sole negligence, or the willful misconduct, of City or any of its officers, officials, employees, agents, or volunteers. This section shall survive termination or expiration of this Agreement.
13. Covenants Running with the Land. Owner acknowledges and agrees all of Owner’ covenants, agreements, promises, representations, and warranties as set forth in this Agreement are covenants running with Owner’ Property as defined in the applicable provisions of Sections 1457 et seq. of the California Civil Code, shall be in favor of and for the benefit of City and shall be enforceable by City. Owner’ covenants, agreements, promises, representations and warranties as contained in this Agreement, shall run with the Property and shall be binding on Owner and Owner’ successors, assigns, lessees and all parties and persons claiming under them. Owner consents to this Agreement being recorded as covenant running with the Property.
14. Successors and Assigns. The covenants and agreements contained in this Agreement shall be binding upon and shall inure to the benefit of the heirs, successors and assigns of the parties hereto.
15. Notices. Any notice required or intended to be given to either party under the terms of this Agreement shall be in writing and shall be deemed to be duly given if delivered personally, transmitted by facsimile followed by telephone confirmation of receipt, or sent by United States registered or certified mail, with postage prepaid, return receipt requested, addressed to the party to which notice is to be given at the party’s address set forth on the signature page of this Agreement, or at such other address as the parties may from time to time designate by written notice. Notices served by United States mail in the manner above described shall be deemed sufficiently served or given at the time of the mailing thereof. All notices regarding any new or increased fee or rate increases affecting the applicable fees and rates in this Agreement, shall be provided in the same manner provided to all customers subject to the new or increased fees and charges.
16. Binding. Once this Agreement is signed by all parties, it shall be binding upon, and shall inure to the benefit of, both parties.
17. Compliance with the Law. In providing the services required under this Agreement, Owner shall at all times comply with all applicable laws of the United States, the State of California, and City, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement. Owner, not City, is responsible for determining applicability of and compliance with all local, State and federal laws including, without limitation, the California Labor Code, Public Contract Code, Public Resources Code, Health & Safety Code, and Government Code; and the Yuba City Municipal Code. City makes
Extra Territorial Service and Infrastructure Agreement
-6-
no representations regarding the applicability of any such laws to this Agreement, the project, or the parties’ respective rights or obligations hereunder including, without limitation, payment of prevailing wages, competitive bidding, subcontractor listing, or other matters. City shall not be liable or responsible, in law or equity, to any person for Owner’ failure to comply with any such laws, whether City knew or should have known of the need for Owner to comply, or whether City failed to notify Owner of the need to comply.
18. Waiver. The waiver by either party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provisions of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.
19. Public Health, Safety and Welfare. Nothing contained in this Agreement shall limit City’s authority to exercise its police powers, governmental authority, or take other appropriate actions to address issues of public health, safety, and welfare as deemed appropriate by City in its sole determination and discretion.
20. Governing Law and Venue. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be Sutter County, California.
21. Headings. The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify, or add to the interpretation or meaning of the provisions of this Agreement.
22. Severability. The provisions of this Agreement are severable. The invalidity or unenforceability of any one provision in this Agreement shall not affect the other provisions.
23. Interpretation. The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against either party, but rather by construing the terms in accordance with their generally accepted meaning.
24. Attorney's Fees. If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees, costs and legal expenses.
25. Exhibits. Each exhibit and attachment referenced in this Agreement is, by the reference, incorporated into and made a part of this Agreement.
Extra Territorial Service and Infrastructure Agreement
-7-
26. Precedence of Documents. In the event of any conflict between the body of this Agreement and any exhibit or attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the exhibit or attachment. Furthermore, any terms or conditions contained within any exhibit or attachment hereto, which purport to modify the allocation of risk between the parties, provided for within the body of this Agreement shall be null and void.
27. Time of Essence. Time is of the essence in the fulfillment by the parties hereto of their obligations under this Agreement.
28. Amendment, Etc. No amendment or waiver of any provisions of this Agreement, or consent to any departure from its terms, shall be effective unless the same shall be in writing and signed by the parties hereto.
29. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity, except Owner (i) cannot seek money damages or pursue an action in law; and (ii) is instead limited to bringing a proceeding in the nature of specific performance, injunctive relief or mandamus, or any other action in equity to require good-faith compliance with this Agreement, such as an action to provide Owner’s Property with sewer services from City’s Water Distribution System.
30. No Third Party Beneficiaries. The rights, interests, duties, and obligations defined within this Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or interests in this Agreement benefit or flow to the interest of any third parties.
31. Extent of Agreement. Each party acknowledges that they have read and fully understand the contents of this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both City and Owner.
32. Third Party Approvals. The Parties acknowledge that there are approvals from third parties (such as those involving public utilities, railroad right-of-way, etc.) that are required to allow the City providing Owner’s Property with water services from the City’s Water Distribution System. The approvals are conditions precedent to performance, and the City shall seek said third-party approvals in good faith.
33. Execution in Counterparts. This Agreement may be executed in counterparts, all of which taken together shall constitute an original hereof.
IN WITNESS WHEREOF, the parties have executed this Agreement at Yuba City, California, the day and year first above written.
Extra Territorial Service and Infrastructure Agreement
-8-
CITY:
CITY OF YUBA CITY,
a California municipal corporation
By:
Shon Harris, Mayor
ATTEST:
By:
Ciara Wakefield, City Clerk Administrator
APPROVED AS TO FORM:
By:
Shannon L. Chaffin
City Attorney
****SIGNATURES CONTINUE ON NEXT PAGE ****
Extra Territorial Service and Infrastructure Agreement
-9-
“OWNER”:
Rosa Elva Rojas Coss
By:
Signature Notarized
Address: 2434 Butte House Road,
Yuba City, CA
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
County of Sutter )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
Extra Territorial Service and Infrastructure Agreement
-10-
“OWNER”:
Rosa Elva Rojas Coss
By:
Signature Notarized
Address: 2434 Butte House Road,
Yuba City, CA
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
County of Sutter )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
01248.0026/581012.1
EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
01248.0026/581012.1
EXHIBIT “B”
WATER CONNECTION QUOTE
Agenda Item 12
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Public Works
Presentation By: Ben Moody, Public Works & Development Services Director Summary
Subject: 2601 Railroad Avenue Extraterritorial Water Service Agreement Recommendation: Adopt a Resolution authorizing the City Manager to execute an extraterritorial service agreement with the property owner of 2601 Railroad Avenue, The Lonnie G. Edwards Revocable Living Trust Dated August 7, 2007, for connection to City water service following approval as to legal form by the City Attorney Fiscal Impact: Water connection fees payable by the property owner to the City estimated to be $15,186.41, plus monthly water usage fees.
Purpose:
To provide a Sutter County resident within the City’s Sphere of Influence with City water service.
Council's Strategic Goal:
This project addresses the City Council's Strategic Goals of improving the City's Infrastructure and providing services that serve and protect residents.
Background:
On June 18, 2024, the owner of 2601 Railroad Avenue, Lonnie G. Edwards, trustee of The Lonnie G.
Edwards Revocable Living Trust Dated August 7, 2007, inquired with City staff regarding options to connect to the City’s water service. The owner expressed adverse reactions to the water supplied by the well on site, and desired to connect to City water in hopes of avoiding these adverse effects. The owner desires to have the house connected to City water, but keep the existing well active for landscape and irrigation needs.
The property is located outside the current City limits, but is within the City’s Sphere of Influence, as well as the Bogue Stewart Master Plan area. At the March 5, 2019 City Council meeting, policy was established to allow existing homes within the Sphere of Influence, but outside the City limits, to connect to City services if the parcel is willing to enter into an extraterritorial service agreement.
City staff have consulted with the residents of the property and discussed the process of connecting to the City’s water system. The owner was provided a quote for the fees associated with connecting to City water and is willing to pay the full connection fees. The owner is agreeable to signing an extraterritorial service agreement (Attachment 1, Exhibit A) and will also pay all construction costs to
connect to City water. The agreement will establish guidelines for the connection to the City’s water system, such as documenting any additional equipment needed for preventing a cross connection, the fee schedule, the terms of the agreement, etc.
Analysis:
The existing 14-inch transmission line is currently being extended south on Railroad Ave from Tuscan Road as part of the Barry School Elementary Waterline Extension Project (Project) in 2024. It will be the owner’s responsibility to connect to the new transmission line by coordinating with a licensed plumber and through the City, to complete the water service installation from the new transmission line to a new meter at the property line. All additional plumbing from the meter to the house will also be the owner’s responsibility.
The owner has an existing well on the property and will need to install a backflow regulator to ensure there is no cross contamination with the City’s water distribution system. The extraterritorial service agreement will require proper equipment to be installed and establish procedures if the area is annexed in the future.
Fiscal Impact:
Water connection fees payable by the property owner to the City are estimated to be $15,186.41, including fees for water service connection, extension, cellular meter, and service fees. The owner will also be assessed monthly usage fees based on the size of the meter installed in accordance with the City’s fee schedule.
Alternatives:
1. Do not approve the agreement for a water service connection. The owner would need to pursue other solutions to improve the well water.
2. Modify the terms of the agreement by providing direction to staff.
Attachments:
1. Resolution - 2601 Railroad Ave Extraterritorial Water Service Agreement Prepared By: Submitted By:
Nick Menezes
Associate Civil Engineer
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO. _________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE AN EXTRATERRITORIAL SERVICE AGREEMENT WITH THE LONNIE G. EDWARDS REVOCABLE LIVING TRUST DATED AUGUST 7, 2007 FOR THE PROPERTY LOCATED AT 2601 RAILROAD AVENUE FOR
CONNECTION TO CITY WATER SERVICES
WHEREAS, the property owner of 2601 Railroad Avenue has approached the City with a written request to connect to the City’s water system; and
WHEREAS, the property is located outside of the current City limits, but within the sphere of influence, as well as the Bogue Stewart Master Plan area; and WHEREAS, at the March 5, 2019 City Council meeting, policy was established, in coordination with Sutter LAFCO authorization, to allow existing homes within the sphere of influence, but outside City limits, to connect to City services if the parcel is willing to enter into an extraterritorial service agreement; and
WHEREAS, the property owner is informed of the required connection fees and terms of the extraterritorial service agreement (Exhibit A) and agreeable to entering into said agreement.
NOW, THEREFORE, the City Council of the City of Yuba City resolves as follows:
1. The City Council finds that all of the facts set forth in the recitals above are true and correct and incorporated herein.
2. The City Council hereby authorizes the City Manager to execute an extraterritorial service agreement with The Lonnie G. Edwards Revocable Living Trust Dated August 7, 2007, owner of the property located at 2601 Railroad Avenue, for connection to City water service, following approval as to legal form by the City Attorney.
The foregoing resolution was duly and regularly introduced, passed, and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on the 20th day of August, 2024.
AYES:
NOES:
ABSENT:
_____________________________
Shon Harris, Mayor
ATTEST:
Ciara Wakefield, City Clerk Administrator
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY:
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
Exhibit “A” – Draft Extraterritorial Water Service Agreement
EXHIBIT “A”
Extra Territorial Service and Infrastructure Agreement
-1-
Recording Requested by and
When Recorded Return to:
City Clerk
City of Yuba City
1201 Civic Center Blvd
Yuba City, CA 95993
NO FEE-Government Code §6103
(Space Above This Line for Recorder’s Office Use Only)
EXTRATERRITORIAL WATER SERVICE AGREEMENT
This EXTRATERRITORIAL WATER SERVICE AGREEMENT (“Agreement”) is made and entered into this ________ day ________, 2024 (the “Commencement Date”), by and between The Lonnie G. Edwards Revocable Living Trust Dated August 7, 2007, (“Owner”), and the CITY OF YUBA CITY, a California municipal corporation (“City”).
RECITALS
A. Owner represents it has acquired lawful title to property identified by Sutter County Assessor’s Parcel Number 23-430-008, located at 2601 Railroad Avenue, Yuba City, CA, 95991 (the “Property”), as more particularly described in Exhibit “A.” B. The Property is located outside of the incorporated boundaries of City within Sutter County, and neither Sutter County nor any other public agency currently provides water service to the Property. The Property is located within the City’s sphere of influence, but outside the City’s existing boundaries.
C. California Government Code § 56133(b) permits a City to provide new or extended services by agreement outside its jurisdictional boundaries but within its sphere of influence, in anticipation of a later change of organization, and with written approval from Sutter Local Agency Formation Commission (“LAFCO”), which may have previously been provided by resolution.
D. The City and Owner both agree it is not necessary for the Property to be annexed into the City at this time.
E. City currently owns and operates a water distribution system and storage tank which conveys potable water originating in its service area through the City’s transmission system. This water distribution system includes a 14-inch transmission main along Railroad Avenue terminating at Tuscan Road. In response to a request by the State Water Board Division
Extra Territorial Service and Infrastructure Agreement
-2-
of Drinking Water regarding water quality, the City will expand its water distribution system and extend the 14-inch transmission main south along Railroad Avenue beginning at Tuscan Road. In response to a request by Owner, City recently produced a quote of the costs for connecting to the City’s water system and the Owner would like to connect to water service at Owner’s cost. The City’s water distribution system is referred to herein as “Distribution System.” The City’s water service line is referred to herein as “City Water Service Line.” F. Owner has agreed to make payments described herein with respect to the water service for the Property in accordance with the fees and rates set by the City for its users, and to comply with City’s Municipal Code as may be amended from time to time, as more fully set forth herein.
G. This Agreement is intended to comply with LAFCO requirements for an extraterritorial water service agreement with City.
H. The City has identified options to provide water supply to the Owner to accommodate the Owner’s water demands at the Extraterritorial Property, provided the Owner meet certain conditions as set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto, agree as follows:
ARTICLE I. RIGHTS AND OBLIGATIONS
1. Recitals Incorporated. The recitals set forth above are true and correct and are hereby incorporated into and made a part of this Agreement.
2. Term, Ownership, and Effectiveness of Agreement: This Agreement shall become effective when executed by both parties hereto. The Agreement shall continue in perpetuity or until such time as the Property is annexed into the corporate boundaries of City. At such time, the Owner shall have such rights, privileges, and duties, including fees and rates, as all other City citizens for the then current water service classification. The City and Owner agree that should the City ultimately annex the Property in the future into the City, the Owner will not contest annexation. Owner intends that this Agreement shall constitute its written consent to the annexation of the lands described herein and shall bind its heirs, successors, grantees and/or assigns, and all persons having or acquiring any interest subsequent hereto in said lands, and shall constitute by this Agreement a covenant running with the land and binding upon said successors, grantees and/or assigns that they in fact consent to the annexation of said lands to City and shall execute whatever documentation as may be necessary and do all things required of them to effectuate the annexation at such time as City deems annexation to be in its best interest.
3. Location for Connection to City Water Distribution System. Owner and City acknowledge the nearest City municipal water distribution system to serve the Property will be at the Connection Point. The Connection Point is defined as the downstream side of the water
Extra Territorial Service and Infrastructure Agreement
-3-
meter. Connection to City’s Water Distribution System by Owner shall be made at this location.
City shall connect, at Owner’s sole cost and expense, the service line from the City’s 14-inch Water Transmission Main on the west side of Railroad Avenue downstream to the Connection Point.
4. Metered Service Connection. The City will install a meter on Owner’s property.
The Owner will pay for installation, maintenance and repair of the meter, unless damaged by the City. All costs and expenses incident to any connection to the Water Distribution System from private property are to be borne by the property owner or water user, who shall indemnify the City from any loss or damage that may directly or indirectly be occasioned by the installation of water lines or appurtenances thereto.
5. New Water Service Line. Owner, at their sole expense and without reimbursement from the City, shall be required to install a water line as necessary to connect to the City’s Water Distribution System from the Property downstream from the meter. Owner shall represent, warrant, and covenant to the City that Owner completed all necessary construction/installation from the Property to the Connection Point (“New Water Service Line”) after receiving all respective County of Sutter and City permits and that the New Water Service Line was constructed in accordance with all respective laws and standards. Both the County of Sutter and the City have signed off on all permits for the construction of the New Water Service Line.
6. System Facilities. Owners shall be responsible for the operation, maintenance and repair of all components of the New Water Service Line downstream from the meter. Under no circumstances shall the City be required to maintain, repair or replace the New Water Service Line unless and until the City, at its sole discretion and option, accepts dedication of the water system or any portion thereof in increments at some future date. Any other water system installed by Owner on the Property connected to a well or other source of water not from the City’s Water Distribution System is not part of the New Water Service Line, and shall be private (“Private Water System”). It is the sole responsibility of Owner to repair, maintain, and replace all Private Water System, and City shall have no responsibility or liability for these Private Water System.
Owner shall obtain all necessary permits or other approvals necessary for constructing and connecting Owner’s Private Water System.
7. Disconnecting of Existing On-Site Private Water System(s). Owner shall disconnect all existing on-site Private Water System(s) on the Property per County standards, and any Private Water System shall be fully separated from and not connected to the City’s Water Distribution System and New Water Service Line effective as soon as the service line is extended from Railroad Avenue to the Connection Point and the meter is installed. A backflow regulator shall be installed at Owner’s expense to ensure no future connections can contaminate the City’s Water Distribution System. Owner will be required to comply with City’s Municipal Code as may be amended from time to time. Owner shall not apply any water obtained from onsite wells to the City’s Water System.
8. No Representation Regarding Water Service, Pressure, or Volume For Any Private Water System. The Owner agrees that there is no guarantee, warranty, or other
Extra Territorial Service and Infrastructure Agreement
-4-
representation regarding water service, pressure, volume, or quality from the City or associated with water service from the City. This would include no guarantee, warranty or representation that the Owner or any other users on the Property will not have allergic or other reactions to the City’s water. The City specifically disclaims any kind of representation, warranty, or guaranty, of any private water system.
9. City to Provide Water Services. Upon Owner’s full and complete performance of all of Owner’s obligations and responsibilities under this Agreement and completion of construction of the City’s expansion of a 1-inch water line from the existing termination at Railroad Avenue to the Connection Point, City agrees to provide Owner’s Property with water services from City’s Water Distribution System and Water Treatment Plant. City’s obligation to provide Owner’s Property with water services from City’s Water Distribution System is conditioned upon City and Owner obtaining the consent of all applicable governmental agencies.
As a condition to providing water service, City shall have the right of access to water meters, including any required irrigation meter(s), whether located on City-owned real property, New Water Service Line, or the Property. Owner shall promptly notify the City of any repairs or replacement of damaged water meters. The City shall respond to such notifications in a reasonable amount of time.
10. Obligations and Responsibilities of Owner to Pay for Municipal Utility Services Provided by City. Owner agrees to promptly pay to City any and all statutory and/or customary connection and service fees adopted by the City for users connecting to the City’s water system and related items, as well as any cost of construction of a water line to the Connection Point. A detailed quote with current fees can be found in Exhibit “B” attached hereto and incorporated by reference. Owner agrees to apply to City for a municipal utility water account, maintain its water municipal utility water service account with City in a current status and comply with – and be subject to – City’s Municipal Code, as subsequently updated or amended. Owner acknowledges and agrees that if the water bill is not paid on or before the 45th day after the bill was sent, service may be discontinued. A delinquency charge will be made and collected prior to renewing service following the discontinuance. Payments must be made prior to 8:30 a.m. on the scheduled discontinuance day. A payment drop box is available at the entrance of City Hall.
11. Inspection. City shall have the right to inspect and examine the Water Distribution System at any time, including during construction and operation of any portion of the New Water Service Line, and the right to access all water meters.
12. Indemnification of City: To the greatest extent allowed by law, Owner shall indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs, and damages (whether in contract, tort, or strict liability, including but not limited to personal injury, death at any time, and property damage) incurred by City, Owner or any other person, and from any and all claims, demands, liabilities, damages, and actions in law or equity (including attorney’s fees and litigation expenses incurred by City or held to be the liability of the City, including plaintiff’s attorneys’ fees if awarded), arising or alleged to have arisen directly or indirectly out of (a) the making of this Agreement; (b) the performance of this Agreement; (c) the performance of any or all work to be done in and upon the street rights-of-way, upon the Property or premises
Extra Territorial Service and Infrastructure Agreement
-5-
adjacent thereto pursuant to this Agreement; (d) arising or alleged to have arisen directly or indirectly in any way related to the design, construction, installation, maintenance and operation of City Water Distribution System or New Water Line by anyone occupying any portion of the Property, including, without limitation, any such claims, causes of action, damages, liabilities, fees, costs, expenses, and attorney fees arising from inadequate flow, blockage, backflow, water quality, etc. Owner’ obligations under the preceding sentence shall apply regardless of whether Owner or any of its officers, officials, employees, agents, or volunteers are passively negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs, or damages caused by the active or sole negligence, or the willful misconduct, of City or any of its officers, officials, employees, agents, or volunteers. This section shall survive termination or expiration of this Agreement.
13. Covenants Running with the Land. Owner acknowledges and agrees all of Owner’ covenants, agreements, promises, representations, and warranties as set forth in this Agreement are covenants running with Owner’ Property as defined in the applicable provisions of Sections 1457 et seq. of the California Civil Code, shall be in favor of and for the benefit of City and shall be enforceable by City. Owner’ covenants, agreements, promises, representations and warranties as contained in this Agreement, shall run with the Property and shall be binding on Owner and Owner’ successors, assigns, lessees and all parties and persons claiming under them. Owner consents to this Agreement being recorded as covenant running with the Property.
14. Successors and Assigns. The covenants and agreements contained in this Agreement shall be binding upon and shall inure to the benefit of the heirs, successors and assigns of the parties hereto.
15. Notices. Any notice required or intended to be given to either party under the terms of this Agreement shall be in writing and shall be deemed to be duly given if delivered personally, transmitted by facsimile followed by telephone confirmation of receipt, or sent by United States registered or certified mail, with postage prepaid, return receipt requested, addressed to the party to which notice is to be given at the party’s address set forth on the signature page of this Agreement, or at such other address as the parties may from time to time designate by written notice. Notices served by United States mail in the manner above described shall be deemed sufficiently served or given at the time of the mailing thereof. All notices regarding any new or increased fee or rate increases affecting the applicable fees and rates in this Agreement, shall be provided in the same manner provided to all customers subject to the new or increased fees and charges.
16. Binding. Once this Agreement is signed by all parties, it shall be binding upon, and shall inure to the benefit of, both parties.
17. Compliance with the Law. In providing the services required under this Agreement, Owner shall at all times comply with all applicable laws of the United States, the State of California, and City, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement. Owner, not City, is responsible for determining applicability of and compliance with all local, State and federal laws including,
Extra Territorial Service and Infrastructure Agreement
-6-
without limitation, the California Labor Code, Public Contract Code, Public Resources Code, Health & Safety Code, and Government Code; and the Yuba City Municipal Code. City makes no representations regarding the applicability of any such laws to this Agreement, the project, or the parties’ respective rights or obligations hereunder including, without limitation, payment of prevailing wages, competitive bidding, subcontractor listing, or other matters. City shall not be liable or responsible, in law or equity, to any person for Owner’ failure to comply with any such laws, whether City knew or should have known of the need for Owner to comply, or whether City failed to notify Owner of the need to comply.
18. Waiver. The waiver by either party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provisions of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.
19. Public Health, Safety and Welfare. Nothing contained in this Agreement shall limit City’s authority to exercise its police powers, governmental authority, or take other appropriate actions to address issues of public health, safety, and welfare as deemed appropriate by City in its sole determination and discretion.
20. Governing Law and Venue. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be Sutter County, California.
21. Headings. The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify, or add to the interpretation or meaning of the provisions of this Agreement.
22. Severability. The provisions of this Agreement are severable. The invalidity or unenforceability of any one provision in this Agreement shall not affect the other provisions.
23. Interpretation. The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against either party, but rather by construing the terms in accordance with their generally accepted meaning.
24. Attorney's Fees. If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees, costs and legal expenses.
25. Exhibits. Each exhibit and attachment referenced in this Agreement is, by the reference, incorporated into and made a part of this Agreement.
Extra Territorial Service and Infrastructure Agreement
-7-
26. Precedence of Documents. In the event of any conflict between the body of this Agreement and any exhibit or attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the exhibit or attachment. Furthermore, any terms or conditions contained within any exhibit or attachment hereto, which purport to modify the allocation of risk between the parties, provided for within the body of this Agreement shall be null and void.
27. Time of Essence. Time is of the essence in the fulfillment by the parties hereto of their obligations under this Agreement.
28. Amendment, Etc. No amendment or waiver of any provisions of this Agreement, or consent to any departure from its terms, shall be effective unless the same shall be in writing and signed by the parties hereto.
29. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity, except Owner (i) cannot seek money damages or pursue an action in law; and (ii) is instead limited to bringing a proceeding in the nature of specific performance, injunctive relief or mandamus, or any other action in equity to require good-faith compliance with this Agreement, such as an action to provide Owner’s Property with sewer services from City’s Water Distribution System.
30. No Third Party Beneficiaries. The rights, interests, duties, and obligations defined within this Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or interests in this Agreement benefit or flow to the interest of any third parties.
31. Extent of Agreement. Each party acknowledges that they have read and fully understand the contents of this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both City and Owner.
32. Third Party Approvals. The Parties acknowledge that there are approvals from third parties (such as those involving public utilities, railroad right-of-way, etc.) that are required to allow the City providing Owner’s Property with water services from the City’s Water Distribution System. The approvals are conditions precedent to performance, and the City shall seek said third-party approvals in good faith.
33. Execution in Counterparts. This Agreement may be executed in counterparts, all of which taken together shall constitute an original hereof.
IN WITNESS WHEREOF, the parties have executed this Agreement at Yuba City California, the day and year first above written.
Extra Territorial Service and Infrastructure Agreement
-8-
CITY:
CITY OF YUBA CITY,
a California municipal corporation
By:
Shon Harris, Mayor
ATTEST:
By:
Ciara Wakefield, City Clerk Administrator
APPROVED AS TO FORM:
By:
Shannon L. Chaffin
City Attorney
****SIGNATURES CONTINUE ON NEXT PAGE ****
Extra Territorial Service and Infrastructure Agreement
-9-
“OWNER”:
The Lonnie G. Edwards Revocable Living Trust Dated August 7, 2007 By:
Signature Notarized
Address: 2601 Railroad Avenue,
Yuba City, CA
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
County of Sutter )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
Extra Territorial Service and Infrastructure Agreement
-10-
“OWNER”:
The Lonnie G. Edwards Revocable Living Trust Dated August 7, 2007 By:
Signature Notarized
Address: 2601 Railroad Avenue,
Yuba City, CA
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
County of Sutter )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
01248.0026/581012.1
EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
01248.0026/581012.1
EXHIBIT “B”
WATER CONNECTION QUOTE
Agenda Item 13
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Administration Department
Presentation By: Ciara Wakefield, City Clerk Administrator Summary
Subject: Appointments to City of Yuba City Personnel Board Recommendation: Approve the Mayor's Recommendation of one (1) Appointment and one (1) Reappointment to the Personnel Board
Fiscal Impact: None
Purpose:
To fill (2) vacancies on the City of Yuba City Personnel Board.
Background:
Recently, Mayor Harris held interviews for the Personnel Board.
The following recommendations are being made at this time:
Recommendation Commission Term Ending
Leonard Brunelle Personnel Board 06/30/2028
Tanna Thomas* Personnel Board 06/30/2028
*The initial appointment of Tanna Thomas on 11/1/22, allowed her to complete the unexpired term of a vacant seat. This term ended 06/30/24. Because the duration of Tanna Thomas' initial term was limited, Mayor Harris recommends that she be re-appointed to full 4-year term (Expiring 6/30/28).
Fiscal Impact: None
Recommendation:
Approve the Mayor's Recommendation of one (1) Appointment and one (1) Reappointment to the Personnel Board.
Attachments:
None
Prepared By: Submitted By:
Ciara Wakefield
City Clerk Administrator
Diana Langley
City Manager
Agenda Item 14
CITY OF YUBA CITY
STAFF REPORT
Date: August 20, 2024
To: Honorable Mayor & Members of the City Council;
From: Human Resources Department
Presentation By: Natalie Springer, Human Resources Director Summary
Subject: Contract with Lincoln Financial Group and BPAS for 457(b) Deferred Compensation and Section 115 Trust Plans
Recommendation: Adopt a Resolution authorizing the City Manager to finalize and execute agreements with Lincoln Financial Group and BPAS to administer the City’s 457(b) Deferred Compensation and Section 115 Trust Plans and other documents necessary for the implementation of these plans; and finalize and execute 457(b) Deferred Compensation and Section 115 Trust Plan documents Fiscal Impact: Costs are paid for by Plan participants as a percentage of assets.
Purpose:
To enter into contracts for 457(b) Deferred Compensation and Section 115 Trust plans with Lincoln Financial Group and BPAS to provide retirement plan administration and recordkeeping for the City.
Council's Strategic Goal:
This addresses the City Council’s Strategic Goal of Fiscal Responsibility. Selecting an appropriate plan administrator can ensure long-term success for the City’s 457(b) deferred compensation and Section 115 Trust plans on behalf of its participants and beneficiaries.
Background:
The City is committed to providing a comprehensive benefits package for employees. Part of a comprehensive benefits package is offering a deferred compensation plan. As a reminder, a deferred compensation plan helps employees save money for retirement and the Section 115 Trust plans help employees save money tax free for health costs in retirement. (Note: Retirement health savings plans are commonly known as Section 115 Trust plans. The City’s incumbent, MissionSquare, has branded Section 115 Trust plans as Retirement Health Savings Accounts (RHS or RHSA).) Since contributions to the Section 115 trust plans are mandatory, contributions must be negotiated for the City’s represented employees with the various employee organization and reflected in memoranda of understanding.
An independent consultant, Hyas Group, was retained by the City to analyze the City’s 457(b) Deferred Compensation and Section 115 Trust plans and the current administrator for these plans,
MissionSquare. This analysis included a thorough Plan review, along with an evaluation of both investment funds and costs.
The Hyas Group is a leading retirement plan consulting firm that works with over 100 public agencies, including cities and counties, on the west coast. Having been a consultant for the City in the past, the Hyas Group is familiar with the City’s needs and structure and have been successful in providing support to the City specifically with 457(b) Deferred Compensation and Section 115 Trust plans.
The Hyas Group issued a formal Request for Proposal (RFP) on the City’s behalf to provide retirement plan administration, recordkeeping, education, communications, and investment related services for the Plan Sponsor’s 457(b) Deferred Compensation Plan and Section 115 Trust plans.
As indicated above, the City has been contracting with MissionSquare (formerly ICMA-RC) to provide record keeping and other administrative services for the City’s 457(b) Deferred Compensation and Section 115 Trust plans. MissionSquare is the incumbent record-keeper, currently providing the City investment and administrative services.
The main objectives of the RFP were:
1. Improve the overall competitiveness of the Plans
2. Evaluate competitive pricing structures and reduce plan expenses
3. Improve participant education and communication services
4. Enhance participant retirement outcomes
5. Offer the most appropriate investment menu for the 457(b) and Section 115 Trust plans There were nine (9) vendors that provided responses to the RFP. After thorough review and scoring by an Evaluation Committee, comprised of bargaining unit representatives, four (4) vendors were selected for further evaluation.
Analysis:
The Evaluation Committee conducted interviews with each of the four (4) finalists. The respective firms presented their teams, discussed their offering, and demonstrated their technology. After all the interviews were concluded, the Evaluation Committee convened to discuss the various offerings, weigh the advantages of each, and determine a recommendation. The Evaluation Committee unanimously selected Lincoln Financial as well as offered a vote of confidence for MissionSquare, the incumbent record-keeper.
The Hyas Group, in conjunction with the Evaluation Committee, conducted an evaluation project assessing the proposals by both Lincoln Financial and MissionSquare. The main goals were as follows:
1. Analyzing the overall competitiveness of the Plans
2. Evaluating competitive pricing structures and reducing plan expenses
3. Improving participant education and communication services
4. Enhancing participant retirement outcomes
5. Offering the most appropriate investment menu for the 457(b) and Section 115 Trust plans
6. Enhancing the formal education for the Deferred Compensation Committee
7. Fee transparency and reducing participant plan expenses for both the 457(b) and Section 115 Trust plans
8. Providing robust on-line transaction and information capabilities for participants and integrated
administration/reporting for the Plans
9. Providing for an orderly and timely transition of assets and services if necessary
10. Formalizing the recordkeeper/Committee working relationship.
The comparisons of the offerings between MissionSquare and Lincoln Financial have been assessed and the selection of Lincoln Financial for administration of the Plans is being recommended.
MissionSquare
MissionSquare has served the City for over 30 years. However, recently there have been service issues at both the participant and plan sponsor level. Many of the recent challenges have been due to recent operational changes by MissionSquare, where they outsourced much of their administrative platform. MissionSquare has communicated they have renewed commitment to the City and are solving their administrative issues.
MissionSquare offers the following:
• Additional support for HR and Finance
• Additional participant support, including 8 days onsite for one-on-one and group meetings • Lower administrative fees than current
• Integrated RHS platform
Lincoln Financial Group
Lincoln Financial is an insurance company based in Fort Wayne, Indiana but has a significant focus on serving as a retirement plan record-keeper to government entities. Lincoln Financial serves several of Yuba City’s surrounding government agency counties such as Placer and Tehama County. Lincoln Financial also provides services to cities (such as the City of Richmond) and special districts. Lincoln Financial offers a robust platform with updated technology, participant support/education, and support for HR and Finance. Lincoln Financial offers the following:
• Additional support for HR and Finance
• Lower administrative fees than currently with MissionSquare • Engaging participant support, including 4 days onsite for one-on-one and group meetings with unlimited virtual one-on-one meetings
• Certified Financial Planner (CFP) planning program free of charge • Robust technology and app for mobile devices
Lincoln Financial uses BPAS to provide additional recordkeeping and administration services. BPAS is a national provider of retirement plans, benefit plans, fund administration, and institutional trust services. BPAS will administer the Section 115 Trust plans on behalf of Lincoln Financial.
Both vendors are neutral to which investments are offered in the plan, therefore whether choosing Lincoln or MissionSquare, the investment menus will be the same, with the exception of the fixed account. The fixed account is a “capital preservation” investment option that offers safety and protection from stock market volatility. It should be noted there is a City Financial Committee comprised of bargaining unit representatives, Hyas Group, and the Finance Department that review investment offerings. This Financial Committee meets quarterly and is engaged in the management of the 457(b) Deferred Compensation and Section 115 Trust plans.
Both Lincoln Financial and BPAS have prepared various form agreements and documents necessary
for these companies to provide services to the City for its 457(b) Deferred Compensation and Section 115 Trust plans, including updated 457(b) Deferred Compensation and Section 115 Trust plan documents. Some of the documents will require further review and revision prior to finalization.
Therefore, City staff is requesting that the City Council adopt a Resolution, which would approve the material terms of the documents and authorize the City Manager to finalize and execute the documents necessary for the implementation of these plans, with agreements subject to approval of the City Attorney.
City staff anticipates that these plans will be implemented effective November 5, 2024. With the Lincoln Financial implementation, participant accounts will not be significantly impacted through the transition period. As part of the transition, there will be at most a three (3) week blackout period (the black out period is anticipated to be less than seven (7) business days). During the blackout period employees won't be able to make changes to their accounts, but the funds are still invested. The transfer of assets will likely happen overnight, or a day or two at most. The biggest impact has to do with a new website/login and new participant education resources. The City's Financial Committee is excited to expand retirement education services to employees. Lincoln Financial's fund lineup will largely be the same with a few updates that the City's Financial Committee has been briefed on.
Fiscal Impact:
Costs are paid for by Plan participants as a percentage of assets.
Alternatives:
1. Do not execute a contract with Lincoln Financial Group/ BPAS and execute an agreement with MissionSquare, the incumbent vendor providing investment and administrative services to the City.
2. Reject the RFP results and direct staff to work with the Hyas Group to re-submit the RFP.
Recommendation:
Adopt a Resolution authorizing the City Manager to finalize and execute agreements with Lincoln Financial Group and BPAS to administer the City’s 457(b) Deferred Compensation and Section 115 Trust plans; and finalize and execute 457(b) Deferred Compensation and Section 115 Trust Plan documents.
Attachments:
1. Resolution
2. Lincoln Financial Documents
3. BPAS Documents
Prepared By: Submitted By:
Aricka Espinoza
Administrative Analyst II
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF YUBA CITY
AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE
AGREEMENTS WITH LINCOLN FINANCIAL GROUP AND BPAS TO
ADMINISTER THE CITY’S 457(b) DEFERRED COMPENSATION AND
SECTION 115 TRUST PLANS AND OTHER DOCUMENTS
NECESSARY FOR THE IMPLEMENTATION OF THESE PLANS; AND
FINALIZE AND EXECUTE 457(B) DEFERRED COMPENSATION AND
SECTION 115 TRUST PLAN DOCUMENTS
WHEREAS, the City of Yuba City desires to provide quality and diverse benefits for its employees;
WHEREAS, the City of Yuba City provides its employees with the opportunity to invest in a 457(b) Deferred Compensation plan and Section 115 Trust plans; WHEREAS, the Hyas Group issued a formal Request for Proposal (RFP) on behalf of the City to evaluate the City’s 457(b) Deferred Compensation plan and Section 115 Trust plan administrator;
WHEREAS, an evaluation committee comprised of bargaining unit representatives determined it is in the best interest of City employees to select Lincoln Financial Group as the new administrator of the City’s 457(b) deferred compensation and Section 115 Trust plans;
WHEREAS, Lincoln Financial Group subcontracts with BPAS to provide additional recordkeeping and administration services for the Section 115 Trust plans; and WHEREAS, the City of Yuba City anticipates that Lincoln Financial Group and BPAS would commence providing services as the new administrator of the City’s 457(b) deferred compensation and Section 115 Trust plans effective November 5, 2024, subject to the City Manager finalizing and executing the necessary agreements and documents.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yuba City as follows:
The City Council approves the material terms of the agreements and documents necessary for the City to contract with Lincoln Financial Group and BPAS for retirement plan administration, recordkeeping, education, communications, and investment related services for 457(b) Deferred Compensation and Section 115 Trust plans, as well as the 457(b) Deferred Compensation plan documents and Section 115 Trust plan documents.
The City Manager is authorized to finalize and execute all agreements and documents necessary, subject to the approval of the City Attorney, for the City to contract with Lincoln Financial Group and BPAS for retirement plan administration, recordkeeping, education, communications, and investment related services for the 457(b) Deferred Compensation and Section 115 Trust plans by providing the services set forth in the agreements and documents.
The City Manager is authorized to finalize and execute the City’s 457(b) Deferred Compensation plan documents and all documents necessary for plan implementation.
The City Manager is authorized to finalize and execute the City’s Section 115 Trust plan documents and all documents necessary for plan implementation.
The forgoing Resolution of the City Council of the City of Yuba City was duly introduced, passed and adopted at a regular meeting thereof held on the 20th day of August 2024.
AYES:
NOES:
ABSENT:
_____________________
ATTEST: Shon Harris, Mayor
______________________
Ciara Wakefield, City Clerk
APPROVED AS TO FORM
COUNCIL FOR YUBA CITY:
__________________________
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
ATTACHMENT 2
Governmental 457(b) Trust Agreement
between
City of Yuba City
and
Lincoln Financial Group Trust Company,
as Trustee
Index
Article I Definitions .................................................................................................1 Section 1.1 Definitions ...........................................................................1 Article II Creation; Purpose; Etc. .............................................................................2 Section 2.1 Creation ...............................................................................2 Section 2.2 Purpose ...............................................................................2 Section 2.3 Exclusive Benefit .................................................................2 Section 2.4 Domestic Trust .....................................................................2 Section 2.5 Prohibited Transactions .......................................................2 Section 2.6 Directed Trustee...................................................................2 Section 2.7 Employer Representation .....................................................2 Article III Administration of Plan ..............................................................................3 Section 3.1 Payment of Benefits .............................................................3 Section 3.2 Reliance on Administrator ....................................................3 Section 3.3 Trustee Not Responsible for Plan Administration ..................3 Section 3.4 Trustee Not Responsible for Enforcing
Contributions or for Sufficiency of Account ...........................3 Section 3.5 Plan-to-Plan Transfers/Rollovers ..........................................3 Article IV Investment of Trust ...................................................................................3 Section 4.1 Employer Authority ...............................................................3 Section 4.2 Investment Managers .......................................................3-4 Section 4.3 Individually Directed Accounts .............................................4 Section 4.4 Reliance on Employer, Investment
Managers, Participants ........................................................4 Section 4.5 Late Day Trading..................................................................4 Section 4.6 Self-Directed Brokerage Accounts ........................................4 Section 4.7 Plan Expense Account..........................................................4 Article V Powers of Trustee ..................................................................................5-6 Section 5.1 General Powers ...................................................................6 Section 5.2 Uninvested Cash and Float ..................................................6 Section 5.3 Valuations ...........................................................................6 Article VI Records and Accounts of Trustee ............................................................7 Section 6.1 Records ...............................................................................7 Section 6.2 Annual and Other Periodic Accounts ....................................7 Section 6.3 Tax Returns and Tax Withholding and Reporting .................7 Article VII Trustee’s Rights/Limitations of Trustee’s Responsibility .......................7 Section 7.1 No Implied Duties ................................................................7 Section 7.2 Authorized Agent .................................................................7 Section 7.3 Reliance by Trustee .............................................................8 Section 7.4 Trustee May Employ Agents ................................................8 Section 7.5 No Obligation to Act on Unsatisfactory Notice ......................8 Article VIII Compensation, Taxes, Expenses, Indemnity............................................8 Section 8.1 Payment of Compensation and Expenses ............................8 Section 8.2 Taxes ..................................................................................8 Section 8.3 Indemnification by Employer..............................................8-3 Section 8.4 Indemnification by Trustee ...................................................9
Article IX Resignation or Removal of Trustee ..........................................................9 Section 9.1 Removal or Resignation of Trustee ......................................9 Section 9.2 Reserve for Expenses .....................................................9-10 Article X Amendment or Termination of Agreement ............................................10 Section 10.1 Amendment of Agreement .................................................10 Section 10.2 Termination of Agreement ..................................................10 Article XI Termination of Plan .................................................................................10 Section 11.1 Amendment or Termination of Plan ....................................10 Section 11.2 Cessation of 457(b) Status .................................................10 Section 11.3 Application of Funds on Termination ..................................10 Article XII General Provisions .................................................................................10 Section 12.1 Governing Law ..................................................................10 Section 12.2 Entire Agreement ...............................................................10 Section 12.3 Notices .........................................................................10-11 Section 12.4 Plan Documents ................................................................11 Section 12.5 Spendthrift Provision ..........................................................11 Section 12.6 Effect .................................................................................11 Section 12.7 Severability ........................................................................11 Section 12.8 Headings and Titles ...........................................................11 Section 12.9 Binding Agreement ............................................................11 Section 12.10 Merger or Consolidation......................................................11 Section 12.11 Force Majeure ....................................................................12 Section 12.12 Shareholder Communications Act.......................................12 Signatures ...........................................................................................13 SDBA Addendum................................................................................14-15
City of Yuba City; 457(b); YUBA-001
1 Governmental 457(b) Trust Agreement
This TRUST AGREEMENT (the "Agreement") is made as of the 5th day of November 2024, by and between CITY OF YUBA CITY (the "Employer"), and LINCOLN FINANCIAL GROUP TRUST COMPANY, a non-depository trust company organized under the laws of the State of New Hampshire (the "Trustee") (each a “Party” or collectively the “Parties”).
Witnesseth
WHEREAS, Employer sponsors a plan under Section 457(b) of the Code, known as the City of Yuba City Deferred Compensation Plan (“Plan”), and
WHEREAS, Employer is either a State, a political subdivision of a State, or an agency or instrumentality of a State or political subdivision of a State so that Employer is eligible to sponsor an eligible deferred compensation plan pursuant to Code Section 457(b), and
WHEREAS, Employer wishes to establish a trust for the Plan pursuant to the requirements of Code Section 457(g), and
WHEREAS, Employer wishes to appoint Trustee as trustee of the Trust established under the Plan and Trustee hereby accepts such appointment.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Employer and Trustee hereby mutually agree as follows:
Article I – Definitions
Section 1.1 Definitions
Unless the context otherwise requires or unless otherwise expressly provided, as used in this Agreement:
(a) "Administrator" means, with respect to the Plan, the organization, entity, committee or other person responsible for benefit administration under the Plan, including any representative or delegate thereof designated in writing, authorized to act on behalf of such organization, entity, committee or other person, and may include the Employer.
(b) "Code" means the Internal Revenue Code of 1986, as amended from time to time, and regulations issued thereunder.
(c) "Investment Manager" means a bank, insurance company or registered investment adviser satisfying the requirements of Section 3(38) of ERISA appointed by the Employer to manage all or any portion of the Trust as designated by the Employer. (d) "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time.
(e) "Trust" means all property, real, personal or mixed, of any kind or nature, contributed, paid or delivered to the Trustee hereunder, and all investments, reinvestments and proceeds thereof, and all gains, earnings and profits thereon.
City of Yuba City; 457(b); YUBA-001
2 Article II - Creation; Purpose; Etc.
Section 2.1 Creation
The Employer hereby creates the Trust. Under the terms of the Plan, the Employer has the power to appoint and hereby appoints Lincoln Financial Group Trust Company to act as Trustee; and Lincoln Financial Group Trust Company hereby accepts the appointment to serve as Trustee.
Section 2.2 Purpose
The Trust is established to fund the benefits payable to participants and their beneficiaries under the Plan.
Section 2.3 Exclusive Benefit
Except as otherwise permitted by law, at no time prior to the satisfaction of all liabilities with respect to participants and their beneficiaries under the Plan shall any part of the Trust be used for, or diverted to, any purposes other than for the exclusive benefit of the participants and their beneficiaries and for defraying the reasonable expenses of administering such Plan.
Section 2.4 Domestic Trust
The Trust shall at all times be maintained as a domestic trust in the United States.
Section 2.5 Prohibited Transactions
Neither Trustee, Employer, Investment Manager nor any participant shall knowingly enter into any transaction, engage in any activity, or direct the purchase or acquisition of any investment with respect to the Plan which would constitute a prohibited transaction under the Code for which a statutory or administrative exemption is not available.
Section 2.6 Directed Trustee
Trustee shall have no discretion or authority with respect to the investments of the Trust but shall act solely as a directed Trustee of the funds contributed hereunder. Trustee shall not have any responsibilities for money or property not deposited into the Trust, except Trustee will take instruction from Employer regarding any group annuity issued by an affiliate of Trustee that Employer or Plan Sponsor owns. Trustee shall have no responsibility for money or properties held in any other trust Employer has established or will establish with respect to the Plan (unless specifically agreed to in writing by Trustee), or held by or deposited with any other trustee appointed by Employer.
Trustee will make distributions from the Plan in accordance with the written directions of the Administrator. To the extent Trustee follows such written direction, Trustee is not obligated in any manner to ensure a distribution complies with the terms of the Plan, that a participant or beneficiary is entitled to such a distribution, or that the amount distributed is proper under the terms of the Plan. If there is a dispute as to a payment from Trustee, Trustee may decline to make payment of such amounts until the proper payment of such amounts is determined by a court of competent jurisdiction, or Trustee has been indemnified to its satisfaction.
Section 2.7 Employer Representation
Employer represents that it is eligible to establish and maintain an eligible deferred compensation plan pursuant to Code Section 457(b). Employer represents that the Plan satisfies the requirement to be an eligible deferred compensation plan as defined in Code Section 457(b). Employer represents that the Plan is a governmental plan as defined in Code Section 414(d) and ERISA Section 3(32). Employer represents and warrants that the specifications, terms and conditions of the Plan are current and comply with applicable law, and that Employer has communicated such specifications, terms and conditions to Trustee in writing Employer further represents and warrants that its underlying business and/or the plan will not cause or put Trustee in position to violate any federal, state or local law, regulation, rule or ordinance.
City of Yuba City; 457(b); YUBA-001
3 Article III – Administration of Plan
Section 3.1 Payment of Benefits
At the direction of the Administrator, Trustee shall pay moneys or other property directly to or for the benefit of participants and their beneficiaries, or to a paying or disbursing agent, which may be the Administrator. Any moneys or other property disbursed or paid over by Trustee pursuant to this Section
3.1 shall no longer be part of the Trust.
Section 3.2 Reliance on Administrator
Any directions pursuant to Section 3.1 may, but need not, specify the application to be made of payments so directed. Each direction to Trustee under Section 3.1 shall constitute a representation and warranty by the Administrator that such direction is in accordance with this Agreement, the Plan and applicable law, and Trustee shall have no duty to make any independent inquiry or investigation before acting upon such direction, or to see to the application of any moneys or other property so paid.
Section 3.3 Trustee Not Responsible for Plan Administration Trustee shall not be responsible in any way for the determination, computation, payment or application of any benefit, or for any other matter affecting the administration of the Plan by the Employer or the Administrator or any organization, entity, committee or other person to whom such responsibility is delegated under the Plan.
Section 3.4 Trustee Not Responsible for Enforcing Contributions or for Sufficiency of Account Trustee shall not be responsible for enforcing payment of any contribution to the Trust, for the timing or amount thereof, or for the adequacy of the Trust or any part thereof or the funding standards adopted for the Plan to meet or discharge any liabilities of the Plan or the Trust. Trustee has no duty to inquire into the source of any money or property transferred to it nor to inquire into the authority or right of the transferor of such money or property to transfer such money or property to Trustee. Trustee does not have any duty to see that the contributions received by it comply with the provisions of the Plan, nor is Trustee obligated to collect any contributions from the Employer; provided, however, Trustee will take such reasonable collection efforts as directed by the Employer.
Section 3.5 Plan-to-Plan Transfers/Rollovers
If the Plan permits plan-to-plan transfers and/or rollovers Trustee shall take such action as is necessary or desirable to accomplish any such matter, all pursuant to appropriate directions from the Administrator. The Administrator shall be responsible to determine that any such plan-to-plan transfers and/or rollovers comply with applicable law.
Article IV – Investment of Trust
Section 4.1 Employer Authority
Except as otherwise provided in Section 4.2 or 4.3, the Employer shall possess all discretionary authority for the management and control of the Trust. The Employer shall be responsible for determining the diversification policy (if and to the extent required), and for monitoring adherence by any Investment Manager or Investment Managers to such policy.
Section 4.2 Investment Managers
Discretionary authority for the management and control of all or any portion of the Trust may be delegated by the Employer, in its absolute discretion, to one or more Investment Managers. The terms and conditions of appointment, authority and retention of any Investment Manager shall be the sole responsibility of the Employer. The Employer shall promptly notify Trustee in writing of the appointment or removal of any Investment Manager and the portion of the Trust over which such Investment Manager shall have authority. Any notice of appointment pursuant to this Section 4.2 shall constitute a
City of Yuba City; 457(b); YUBA-001
4 representation and warranty that the Investment Manager has been appointed in accordance with the Plan and that any Investment Manager is an Investment Manager as defined in this Agreement. The Employer may limit, restrict or impose guidelines affecting the exercise of the discretion conferred on any Investment Manager, and shall be responsible for communicating, and monitoring adherence to, any such limitations, restrictions or guidelines.
Section 4.3 Individually Directed Accounts
As to each individually directed account permitted by the Plan, the applicable participant shall possess all of the investment and investment-related authority held by the Employer hereunder, and Trustee shall invest and reinvest such assets pursuant to the directions of the participant, as communicated in writing, via facsimile or by electronic transmission to Trustee by the Administrator or its delegate.
Trustee shall be fully protected in relying upon the instructions of the Administrator or its delegate as to the participant's directions. Trustee shall not be liable to the participant or any of his or her beneficiaries for any loss resulting from any action taken at the direction of the participant.
Section 4.4 Reliance on Employer, Investment Managers, Participants Trustee shall invest and reinvest the Trust pursuant to the directions of the Employer, participants – acting through the Administrator or its delegate - or the Investment Manager or Investment Managers, as the case may be. Trustee shall have no investment responsibility with respect to the Trust, and shall have no duty to inquire into the directions of the Employer, participants – acting through the Administrator or its delegate - any Investment Manager, as the case may be, to solicit such directions, to determine such directions are in compliance with the provisions of the Plan, or to review and follow the investments made pursuant to any such directions, other than to the extent required by law. Any such investment direction shall constitute a representation and warranty that the transaction will not constitute a prohibited transaction or other violation under the Code and that the investment is authorized under this Agreement, the Plan, any other applicable agreement affecting investment authority under the Plan, or any applicable law.
Trustee may refuse to comply with any directions in the event Trustee, in its sole discretion, deems such directions improper by virtue of applicable law. Trustee shall not be responsible or liable for any loss or expense which may result from Trustee’s refusal and failure to comply with any such directions.
Section 4.5 Late Day Trading
Trustee does not engage in the practice of late day trading. In the event trade orders made by the Plan or its participants are received before the established cutoff time for Trustee or another party to receive such orders and such orders cannot be processed by the cutoff time, the Employer authorizes Trustee to process these orders after the cutoff time as if they were received and processed before the cutoff time.
Section 4.6 Self-Directed Brokerage Accounts
In the event the Plan now or hereafter provides for self-directed brokerage accounts (“Participant SDBAs”) as an investment option, the Employer and Trustee agree that the provisions set forth on the Self Directed Brokerage Accounts Addendum attached hereto shall be deemed incorporated into this Agreement. The Employer agrees to give Trustee reasonable advance notice of its intention to offer Participant SDBAs.
Section 4.7 Plan Expense Account
The Employer hereby directs Trustee to establish a segregated sub-account within the Trust for the purpose of receiving certain amounts from mutual fund sub-transfer agents, administrative service fees, shareholder servicing fees or other revenue or annuity spread revenue (the “plan expense account”).
As authorized by Employer, the plan expense account will be invested in an investment that has an investment objective of capital preservation and liquidity. The Employer hereby agrees that if included as an investment option under the Plan, such investment shall be a group fixed annuity or stable value investment issued by an affiliate of Trustee. If Employer chooses not to include such investment issued by an affiliate of Trustee, then the plan expense account will be invested in such other investment option as designated by the Employer.
City of Yuba City; 457(b); YUBA-001
5 From time to time, Trustee shall receive such fees or revenue and deposit or sweep it into the plan expense account. Such funds shall be considered Plan assets. The activity of the plan expense account shall be provided quarterly to the Employer. Any Plan expense to be paid from the plan expense account shall be at the direction of the Administrator or its delegate to Trustee or its affiliate. At no time shall Trustee or its affiliates have discretion to make deposits into or payment out of the plan expense account. If the balance in the account is to be used as contributions to Plan participants, the Administrator or its delegate will notify Trustee or its affiliate of the amount in the plan expense account that will be used for participant contributions. The Plan’s record keeper will coordinate the transfer of funds from the plan expense account to participant accounts.
Trustee is not responsible for ensuring the accuracy or adequacy of assets transferred to the plan expense account but will rely on its affiliated recordkeeper and service provider, Lincoln Retirement Services Company, LLC, to transfer the agreed amounts to the plan expense account. The Employer will have control over such account and will be responsible for any application or use of such funds in the plan expense account.
Article V – Powers of Trustee
Section 5.1 General Powers
Upon the directions of the Employer, the Investment Manager(s), or the Administrator on behalf of the participants with respect to individually directed accounts, as the case may be, Trustee shall be authorized and empowered to exercise any and all of the following rights, powers and privileges with respect to the Trust:
(a) To invest and reinvest the principal and income of the Trust Fund, without distinction between principal and income, in such securities as but not limited to, common stocks, preferred stocks, bonds, bills, notes, commercial paper, debentures, mortgages, equipment trust certificates, investment trust certificates, partnership interests and also in other investments, whether real, personal or mixed property.
(b) To receive any and all money and other property of whatsoever kind or nature due or owing or belonging to the Trust.
(c) To settle, compromise, or submit any claims, debts or damages due or owing to or from the Trust; to commence or defend suits or legal proceedings; and to represent the Trust in all suits or legal proceedings in any court of law or equity or before any other body or tribunal, insofar as such suits or proceedings relate to any part of the Trust or the administration thereof. (d) To borrow money from any source as may be necessary or advisable to effectuate the purposes of the Trust.
(e) To generally take all actions, execute all instruments, and exercise all rights and privileges with relation to the Trust, whether or not expressly authorized, as Trustee is directed or in its sole discretion deems necessary or desirable, subject however to the directions by an appropriate party as set forth in this Agreement.
(f) To execute and deliver any vote, proxy, tender offer or similar rights incident to the ownership of any securities held in the Trust, except that Trustee shall exercise such rights only pursuant to the written instructions of the Employer, or the written instructions of plan participants or beneficiaries if the Plan gives such rights to participants or beneficiaries, or by the Investment Manager if an Investment Manager has been appointed pursuant to Section 4.2. If no such written directions are timely received from the appropriate party, Trustee shall not vote or exercise any such rights with respect to such securities.
(g) To sell, exchange, convey, transfer or otherwise dispose of any such property at public or private sale, for cash or credit, or partly for cash and partly for credit, and with or without notice or advertisement of any kind.
(h) To purchase whole or part interests in real property or in mortgages on real property, wherever situated, directly or through financial intermediaries or entities, such as, but not limited to,
City of Yuba City; 457(b); YUBA-001
6 partnerships, and to mortgage or lease for any term any real property or part interest in real property; and to delegate to a manager the management and operation of any interest in such property or properties.
(i) To purchase or sell, write or issue, puts, calls or other options, covered or uncovered, to enter into financial futures contracts, forward placement contracts and standby contracts, and in connection therewith, to deposit, hold or pledge assets of the Trust Fund. (j) To collect and receive any and all money and other property of whatsoever kind or nature due or owing or belonging to the Trust Fund and to give full discharge and acquittance; therefore, and to extend the time of payment of any obligation at any time owing to the Trust Fund. (k) To transfer, from time to time, all or any part of the Trust Fund to any common, collective or commingled trust fund exempt from taxation under the Code (“Collective Trust”) and/or to enter into the relevant trustee agreement on behalf of the Plan for such Collective Trust, to be held and administered subject to the terms and provisions of the relevant trust agreement, and such trust agreement shall be deemed adopted as part of this Agreement and the Plan to the extent that any portion of the Trust Fund is invested therein.
(l) To apply for and procure from an insurance company as an investment of the Trust such annuity, or other contracts on the life of any participant as the Administrator shall deem proper; exercise, at any time or from time to time, whatever rights and privileges may be granted under such annuity, or other contracts; and collect, receive, and settle for the proceeds of any such annuity, or other contracts as and when entitled to do so under the provisions thereof. (m) To, upon the written direction of the Administrator, enter into a transfer agreement with the Trustee of another qualified retirement plan and to accept a transfer of assets from such retirement plan on behalf of any employee of the Employer. Trustee is also authorized, upon the written direction of the Administrator, to transfer some or all of a participant’s vested account balance to another qualified retirement plan on behalf of such participant.
Section 5.2 Uninvested Cash and Float
With respect to uninvested cash and float, while Trustee may not at any time accept deposits of funds, it is understood that State Street Bank (or any successor thereto) (hereinafter, the “depository bank”), acting on behalf of Trustee, may from time to time, have on hand funds from (i) the receipt of contributions that are awaiting investment or (ii) the sale of assets which are awaiting reinvestment or distribution. While there is not an explicit fee debited from plan assets as float revenue, a noninterestbearing omnibus bank account has been established at depository bank in which to temporarily place cash to facilitate purchases and liquidations into and out of the Plan. The account is a noninterest bearing account, so no explicit direct float income is earned on the cash in transit. However, the account does earn banking credits based on the following formula: The Fed Funds Rate x 1/360 treasury rate. Contributions into the account are generally held in the account for one to two days. Distributions from the account are generally in the account for less than one day for wires and ACH transfers and three or more days for distributions. The length of time cash stays in this account can vary depending on how quickly the check is redeemed by the participant or how quickly payroll is processed. Credits earned are used entirely to pay banking fees and other fees that would otherwise be charged to Trustee and its clients.
Section 5.3 Valuations
Trustee shall periodically determine the market value of the assets of the Trust or, in the absence of readily ascertainable market values, at such values as Trustee shall determine in accordance with methods consistently followed and uniformly applied. With respect to assets without readily ascertainable market values, Trustee may rely for all purposes of this Agreement on the latest valuation and transaction information submitted to it by the person responsible for the investment. The Employer shall cause such person to provide Trustee with all information needed by Trustee to discharge its obligations to value such assets and to account for such assets under this Agreement.
Article VI – Records and Accounts of Trustee
City of Yuba City; 457(b); YUBA-001
7 Section 6.1 Records
Trustee shall keep accurate and detailed accounts of all investments, receipts, disbursements and other transactions in the Trust and all accounts, books and records relating thereto shall be open to inspection and audit at reasonable times during normal business hours by any person designated by the Employer.
Section 6.2 Annual and Other Periodic Accounts
Within ninety (90) days following the close of each Plan year, and within sixty (60) days following the close of each Plan quarter, Trustee shall file with the Employer or the Administrator a written account setting forth the receipts and disbursements and the investments and other transactions effected by it with respect to the Trust during such Plan year or quarter, as the case may be. Unless otherwise requested, recipients will be set up for quarterly statements and access via the web for all trust account reporting. Neither the Employer, the Administrator, any participant nor any other person shall be entitled to any additional or different accounting by Trustee and Trustee shall not be compelled to file in any court any additional or different accounting.
Section 6.3 Tax Returns and Tax Withholding and Reporting Unless otherwise agreed to in writing by the Parties, Trustee, acting through its affiliate Lincoln Retirement Services Company, LLC (“LRSC”) shall prepare and file tax returns or other filings with respect to the Trust only if such returns or filings must be filed by Trustee rather than by the Administrator or the Employer. If Trustee disburses funds from the Trust to a Plan participant, Trustee, acting through LRSC, shall withhold and remit to the Internal Revenue Service (“IRS”) and other applicable taxing authorities the amount of any income tax withholding required by law. Unless otherwise agreed to in writing by the Parties, the Employer shall be responsible for preparing and filing all other applicable federal and state reports.
Article VII – Trustee’s Rights/Limitation of
Trustee’s Responsibility
Section 7.1 No Implied Duties
The duties and responsibilities of Trustee shall be solely determined in accordance with this Agreement, shall not be deemed to be enlarged by the provisions of the Plan, and no other or further duties or responsibilities shall be implied against or imposed on Trustee.
Section 7.2 Authorized Agent
The Employer may authorize, at its own discretion, the person, or persons (including a financial representative or Investment Manager) to whom they have granted authority to give instructions to Trustee on behalf of the Employer hereunder. The Employer may notify Trustee from time to time, or cause Trustee to be notified from time to time, of the names of other organizations, entities, committees, or other persons authorized to act as or on behalf of the Administrator, the Named Fiduciary, Investment Manager, or in any manner authorized to issue notices, requests, directions, instructions, or other communications to Trustee pursuant to this Agreement. Trustee is entitled to rely upon and assume, without further inquiry, that any instructions or directions received by or on behalf of the Employer, or a duly authorized representative of Employer as defined above, shall have been deemed to originate from the Employer.
City of Yuba City; 457(b); YUBA-001
8 Section 7.3 Reliance by Trustee
Trustee shall be entitled to rely upon each representation, information, notice, direction, and other communication furnished by or on behalf of the Employer, the Administrator, each Named Fiduciary and each Investment Manager; and Trustee shall be protected to the extent the law permits in acting in accordance with and relying upon such representations, information, notices, directions, and other communications; and Trustee shall be under no duty to make any inquiry or investigation in connection therewith.
Section 7.4 Trustee May Employ Agents
Trustee may from time to time employ and consult with counsel (who may also serve as counsel for the Employer or Trustee) and shall be protected to the extent the law permits in acting upon such advice of counsel. Trustee may also from time to time employ accountants and other agents as may be reasonably necessary in administering and protecting the Trust, and Trustee may pay such counsel, accountants and other agents reasonable compensation, which shall be reimbursed to Trustee in accordance with Section 8.1. Trustee shall at no time be obligated to institute any legal action or to become a party to any legal action unless Trustee shall have been indemnified to its satisfaction for any fees, costs and expenses to be incurred in connection with such legal action.
Section 7.5 No Obligation to Act on Unsatisfactory Notice Trustee shall not be liable for any failure to act pursuant to any notice, direction or any other communication from the Employer, the Administrator, any Investment Manager or any other person or delegate of any of them unless and until it shall have received directions in the form specified in this Agreement.
Article VIII – Compensation, Taxes, Expenses, Indemnity Section 8.1 Payment of Compensation and Expenses
Trustee shall be entitled to receive reasonable compensation for its services and reimbursement of all reasonable costs and expenses incurred in connection with the administration of the Trust. Unless and until agreed otherwise in writing by the Employer and Trustee, the compensation of Trustee shall be as agreed upon from time to time among Trustee and the Employer; and in the event that Trustee shall be called upon to render any extraordinary services, it shall be entitled to additional compensation provided it has given Employer prior written notice of such charges prior to rendering any extraordinary services.
Any change in Trustee’s compensation or charges will be applicable only after reasonable notice to the Employer. If such compensation, costs and expenses are not paid by the Employer, they shall be paid from the Trust.
Section 8.2 Taxes
All income or other taxes of any kind whatsoever which may be properly levied or assessed under existing or future laws upon, or in respect of, the Trust shall, at the direction of the Administrator, be paid by Trustee out of the Trust, and, until paid, shall constitute a charge upon the Trust.
Section 8.3 Indemnification by Employer
In addition to any other remedies at law or in equity available to Trustee for breach of this Agreement by Employer, the Employer shall indemnify Trustee against, and agrees to hold Trustee harmless from, any and all damages, losses, costs, judgments, fines and expenses (including attorneys’ fees and disbursements) of any kind and nature related to this Agreement including any such items arising out of any threatened, pending, or completed claim, action, suit, or proceeding, whether civil, criminal, administrative, or investigative (hereinafter in the aggregate referred to as the “Losses”), unless such Losses result from Trustee’s intentional wrongdoing or negligent actions or omissions. Except as otherwise provided by the preceding sentence, the Employer also shall indemnify Trustee against, and agrees to hold Trustee harmless from, all Losses arising from any actions or breach of any responsibility by any party other than Trustee.
City of Yuba City; 457(b); YUBA-001
9 The Employer agrees to indemnify Trustee against any Losses arising as a result of any act taken or failure to act by Trustee, in accordance with the directions received from the Employer, Administrator, Investment Manager, participant, or a designee specified by the Administrator or the Employer.
Trustee shall not be responsible in any way for any actions taken, or failure to act, by a prior trustee or custodian. The Employer shall indemnify and hold harmless Trustee for any Losses for such prior trustee’s or custodian’s acts or inactions
The Employer shall indemnify Trustee against, and agrees to hold Trustee harmless from any Losses resulting from Trustee’s actions or inactions pursuant to the provisions of Section 5.1(f) pertaining to voting, proxies, tender offers or similar rights.
As a condition of indemnification, (i) Trustee shall give Employer timely notice in writing of any potential Losses promptly after Trustee becomes aware of them; (ii) Employer shall, at its option, have sole control of the defense of such Losses; and (iii) Trustee shall cooperate with Employer in the defense of such Losses. Employer shall not be responsible for the settlement of any claim, demand or lawsuit related to the Losses without Employer’s written consent.
For purposes of this Section 8.3, the term Trustee shall include Trustee’s officers, directors (or managers), employees and agents.
Section 8.4 Indemnification by Trustee
In addition to any other remedies at law or in equity available to Employer for breach of this Agreement by Trustee, Trustee will indemnify Employer, from and against any Losses imposed on or incurred by Employer and related to this Agreement where such Losses are the result of Trustee’s intentional wrongdoing or its negligent actions or omissions. However, Trustee will have no liability with respect to claims of breach of its duties for (i) the inclusion, exclusion, or deletion of investments in the Plan, or (ii) the monitoring of such investments after the Employer’s selection of them as an investment option for the Plan.
As a condition of indemnification, (i) Employer shall give Trustee timely notice in writing of any potential Losses promptly after Employer becomes aware of them; (ii) Trustee shall, at its option, have sole control of the defense of such Losses; and (iii) Employer shall cooperate with Trustee in the defense of such Losses. Trustee shall not be responsible for the settlement of any claim, demand or lawsuit related to the Losses without Trustee’s written consent.
For purposes of this Section 8.4, the term Employer shall include Employer’s officers, directors (or managers), employees and agents.
Article IX – Resignation or Removal of Trustee
Section 9.1 Removal or Resignation of Trustee
Trustee may be removed by the Employer at any time by 60 days prior written notice to Trustee. Trustee may resign at any time by written notice to the Employer. Such notice shall be effective 60 days after receipt by the Employer or such later date as shall be specified therein, or at an earlier date by the mutual agreement of the Parties. Upon the effective date of the removal or resignation of Trustee, Trustee shall deliver the Trust to a successor Trustee or Trustee designated by the Employer. If, for any reason, the Employer cannot or does not act promptly to appoint a successor Trustee, Trustee may apply to a court of competent jurisdiction for the appointment of a successor Trustee. Any expenses incurred by Trustee in connection therewith shall be charged to and paid from the Trust as an expense of administration.
Section 9.2 Reserve for Expenses
Trustee is authorized to reserve such sum of money (and for that purpose to liquidate property to produce such sum) as it may deem advisable for payment of all proper charges against the Trust,
City of Yuba City; 457(b); YUBA-001
10 including expenses in connection with such resignation or removal, and any balance of such reserve remaining after the payment of such charges shall be paid over to the successor Trustee or Trustee.
Article X – Amendment or Termination of Agreement
Section 10.1 Amendment of Agreement
A Party may not alter, modify or amend this Agreement in whole or in part at any time, without the prior written consent of the other Party.
Section 10.2 Termination of Agreement
Subject to Section 9.1, the Parties may at any time terminate this Agreement by written notice given to the other Party. The Parties may by mutual agreement determine an earlier time when such termination shall be effective. Such notice of termination shall be accompanied by evidence of formal City action approving such termination (for example City Council minutes or resolution). In the event of the termination of this Agreement, the Trust shall be distributed pursuant to Article IX or XI hereof.
Article XI – Termination of Plan
Section 11.1 Amendment or Termination of Plan
If Employer alters, modifies, amends or terminates the Plan in whole or in part, Employer shall give written notice to Trustee promptly of such alteration, modification or amendment. Such notice shall include a certified copy of a resolution of the Board of Directors of the Employer or letter on Employer’s letterhead and signed by an officer with authority over the Plan.
Section 11.2 Cessation of 457(b) Status
The Employer shall promptly notify the Trustee if the Plan becomes an ineligible deferred compensation plan pursuant to the provisions of Code Section 457(f), or if the Plan ceases for any reason to qualify as a Section 457(b) plan.
Section 11.3 Application of Funds on Termination
In the event of termination of the Plan, the interests of the Plan participants shall vest and be processed in accordance with the written directions of the Employer, accompanied by a certificate that such disposition is in accordance with the terms of the Plan.
Article XII – General Provisions
Section 12.1 Governing Law
To the extent not preempted by the provisions of any applicable federal law, this Agreement shall be administered, construed and enforced according to the laws of the State of Indiana, and shall be deemed to have been executed and delivered in that State.
Section 12.2 Entire Agreement
Trustee's duties and responsibilities to the Plan or any person interested therein shall be limited to those specifically set forth in this Agreement. No amendment to the Plan or any other document affecting the Plan shall affect Trustee's duties or responsibilities hereunder without its prior written consent.
Section 12.3 Notices
Except as otherwise provided in writing and agreed to by Trustee, all notices, reports, accounts and other communications from Trustee to the Employer, the Employer, the Administrator, the Investment Manager(s) or any other person shall be in writing or in such other form agreed to by the parties,
City of Yuba City; 457(b); YUBA-001
11 including transmission by electronic means through the facilities of third parties or otherwise. Any paper communication shall be deemed to be duly given if mailed; postage prepaid, or otherwise placed for delivery by a national delivery service, shipping prepaid, or is delivered by hand to such person at the address appearing on the records of the Trustee. Any electronic notice shall be deemed to be duly given at the time the electronic notification is sent. Except as otherwise provided in writing and agreed by Trustee, all directions, notices, objections and other communications to Trustee shall be in writing or in such other form, including transmission by electronic means through the facilities of third parties or otherwise, specifically agreed to in writing by Trustee and shall be deemed to have been given when received by Trustee at its offices.
Section 12.4 Plan Documents
Upon execution of this Agreement, Trustee hereby requests the Employer to provide complete, current copies of the Plan documents. Trustee shall be entitled to rely upon the Employer’s attention to this obligation and shall be under no duty to request such documents again or to inquire of any person as to the existence of any documents not provided hereunder.
Section 12.5 Spendthrift Provision
Except as may be required by law, no interest or claim of interest of any kind of any participant under the provisions of this Trust is assignable, nor may any such interest or claim be subject to garnishment, attachment, execution or levy of any kind, and no attempt to transfer, assign, pledge or otherwise encumber or dispose of such interest by act of the person involved or by operation of law will be recognized.
Section 12.6 Effect
All persons at any time interested in the Plan shall be bound by the provisions of this Agreement and, in the event of any conflict between this Agreement and the provisions of the Plan or any instrument or agreement forming part of the Plan, the provisions of this Agreement shall control.
Section 12.7 Severability
The illegality or unenforceability of any provisions of this Agreement or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Agreement or any instrument or agreement required hereunder.
Section 12.8 Headings and Titles
The titles of the Articles and headings of Sections in this Trust Agreement are for convenience of reference only and in case of conflict the text of this Trust Agreement rather than such titles or headings shall control.
Section 12.9 Binding Agreement
This Agreement shall be binding upon Trustee and the Employer, their successors and assigns, and upon the participants and their beneficiaries, heirs, executors, administrators and assigns.
Section 12.10 Merger or Consolidation
Any legal entity into which Trustee may be merged, or with which it may be consolidated, or any legal entity resulting from any merger or consolidation to which Trustee may be a party, or any legal entity succeeding to the business of Trustee or to which substantially all of the assets of Trustee may be transferred, shall be the successor of Trustee hereunder without the execution or filing of any paper and without any further action on the part of the parties hereto, with like effect as if such successor Trustee had originally been named Trustee herein.