Loading...
HomeMy Public PortalAboutA 2019-03-05 CCThis Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Any person who has a question concerning any of the agenda items may call the City Manager at (310) 603-0220, ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE PODIUM, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUR SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA City Council Regular Meeting TO BE HELD ON March 5, 2019 Duly Posted 2/28/19 by MQ COUNCIL CHAMBERS - 11350 BULLIS RD. LYNWOOD, CA 90262 6:00 PM 1.CALL TO ORDER 2.CERTIFICATION OF AGENDA POSTING BY CITY CLERK 3.ROLL CALL OF COUNCIL MEMBERS Jose Luis Solache, Mayor Aide Castro, Mayor Pro Tem Salvador Alatorre, Council Member Jorge Casanova, Council Member Marisela Santana, Council Member 4.PLEDGE OF ALLEGIANCE 5.INVOCATION 6.PRESENTATIONS/PROCLAMATIONS Sheriff Captain Carter- Update on Law Enforcement Issues City Council Members Reporting on Meetings Attended (Gov. Code Section 53232.3 (D)). 7.COUNCIL RECESS TO: City of Lynwood as the Successor Agency to the Lynwood Redevelopment Agency Lynwood Public Financing Authority Lynwood Housing Authority Lynwood Utility Authority PUBLIC ORAL COMMUNICATIONS City Council Regular Meeting - Page 1 of 268 (Regarding Agenda Items Only) NON-AGENDA PUBLIC ORAL COMMUNICATIONS THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE COUNCIL ON ITEMS WITHIN THE JURISDICTION OF THE COUNCIL AND NOT LISTED ON THE AGENDA. IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT COUNCIL MAY REFER THE MATTER TO STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).) CITY COUNCIL ORAL AND WRITTEN COMMUNICATION PUBLIC HEARING 8.ZONING CODE AMENDMENT NO. 2019-01 Comments: The City Council will consider Zoning Code Amendment No. 2019-01, which is a City initiated amendment to the Zoning Code (Chapter 25 of the Lynwood Municipal Code) for the purpose of amending Appendix A in order to establish new land use designations while at the same time correcting existing land uses designations (CD) Recommendation: Staff recommends that the City Council: 1. CONDUCT a public hearing, receive public testimony, and, after discussion, vote upon the matter at hand. 2. ADOPT the attached Ordinance entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING ZONING CODE AMENDMENT NO. 2019-01, AMENDING APPENDIX A OF CHAPTER 25 OF THE LYNWOOD MUNICIPAL CODE IN ORDER TO ESTABLISH NEW LAND USE DESIGNATIONS AND CORRECT EXISTING LAND USE DESIGNATIONS." 9.CONTINUE PUBLIC HEARINGS ON THE AWARD OF CONTRACT FOR ENERGY RELATED IMPROVEMENTS AND APPROVAL OF A FINANCE AGREEMENT AND RELATED LOAN DOCUMENTS Comments: A notice of public hearing for March 5, 2019 regarding the adoption of certain findings and approving a finance agreement and related loan documents with Go Green Consultants, LLC to fund energy improvements at City of Lynwood Facility was published on February 14, 2019. A notice of public hearing for March 5, 2019 regarding approving a resolution adopting certain findings and approving energy service contract for energy related improvements to the City Facilities with Go Green Consultants, LLC was published on February 14, 2019. (PW) Recommendation: Staff recommends that the City Council open the public hearings and continue the public hearings to the next regularly scheduled Council Meeting on March 19, 2019 at 6 pm or soon thereafter. CONSENT CALENDAR ALL MATTERS LISTED UNDER THE CONSENT CALENDAR WILL BE ACTED UPON BY ONE MOTION AFFIRMING THE ACTION RECOMMENDED ON THE AGENDA. THERE WILL BE NO SEPARATE DISCUSSION ON THESE ITEMS PRIOR TO VOTING UNLESS MEMBERS OF THE COUNCIL OR STAFF REQUEST SPECIFIC ITEMS TO BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE ACTION. 10.APPROVAL OF THE WARRANT REGISTER City Council Regular Meeting - Page 2 of 268 Comments: City of Lynwood warrant register dated March 5, 2019 for FY 2018-2019. Recommendation: Staff recommends that the City Council of the City of Lynwood approve the warrant register dated March 5, 2019 for FY 2018-2019. 11.MINUTES FROM PREVIOUS MEETINGS Comments: N/A Recommendation: Staff recommends that the City Council to approve the following minutes: Special Closed Session November 6, 2018 Special Closed Session November 20, 2018 12.TREASURER'S MONTHLY INVESTMENT REPORT Comments: The purpose of this item is to have the Honorable Mayor and the Lynwood City Council review the Treasurer’s Monthly Investment Report as required by State Statutes. (CT) Recommendation: It is recommended that the City of Lynwood receive and file the attached Monthly Investment Report. The following information is provided to ensure the City Council is informed of the investment activities for the month ending January 31, 2019 13.CITY MANAGER'S MONTHLY TASK ORDER REPORT Comments: On June 19, 2018 the City Council of the City of Lynwood approved Ordinance No. 1711, "An Ordinance of the City Council of the City of Lynwood Amending Chapter 6, Subsection 6-3 of the Lynwood Municipal Code," which allows for a set spending authority allotted for City Management or his/her authorized designee. Pursuant to the amended Municipal Code, the City Manager must provide a monthly report to the City Council of purchases executed under his/her authority. (CM) Recommendation: It is recommended that the City Council of the City of Lynwood receive and file the City Manager's Monthly Task Order Report for the month of February 2019. NEW/OLD BUSINESS 14.AWARD OF CONTRACT FOR THE VALUATION OF THE CITY’S WATER AND SEWER SYSTEMS Comments: On January 10, 2019, the staff issued a Request for Proposal for a valuation of the water and sewer systems. Two proposals were received. Staff recommends that the City Council award the contract to Raftelis for the valuation. (PW) Recommendation: Staff recommends that the City Council adopt the attached resolution entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE AWARD OF CONTRACT TO RAFTELIS FOR THE VALUATION OF THE CITY OF LYNWOOD’S WATER AND SEWER SYSTEMS IN AN AMOUNT NOT TO EXCEED $53,888 AND AUTHORIZING THE CITY MANAGER TO APPROVE ADDITIONAL SERVICES UP TO 30 PERCENT OF THE CONTRACT PRICE.” City Council Regular Meeting - Page 3 of 268 15.PROPOSED ORDINANCE IN RESPONSE TO SENATE BILL 946, THE SAFE SIDEWALK VENDING ACT Comments: The City Council will consider an Urgency Sidewalk Vending Ordinance and a regular Sidewalk Vending Ordinance, which would adopt sidewalk vending regulations for licensing and operating a sidewalk vending operation with the City of Lynwood. (CD) Recommendation: Staff recommends that the City Council: 1. ADOPT the attached Urgency Ordinance entitled “AN URGENCY ORDINANCE OF T HE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 13-7 (VENDING, PEDDLING, SELLING AND/OR SOLICITING ON PUBLIC STREETS, SIDEWALKS, PARKS, PARKWAYS, MEDIANS, LANDS, PROPERTIES OR OTHER LANDS OR PROPERTIES UNDER THE CONTROL OF THE CITY) OF THE LYNWOOD MUNICIPAL CODE TO CREATE A SIDEWALK VENDING PROGRAM” by a four-fifths (4/5) vote. 2. INTRODUCE the attached Ordinance for First Reading, by title only, “AN ORDINANCE OF T HE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 13-7 (VENDING, PEDDLING, SELLING AND/OR SOLICITING ON PUBLIC STREETS, SIDEWALKS, PARKS, PARKWAYS, MEDIANS, LANDS, PROPERTIES OR OTHER LANDS OR PROPERTIES UNDER THE CONTROL OF THE CITY) OF THE LYNWOOD MUNICIPAL CODE TO CREATE A SIDEWALK VENDING PROGRAM.” 3. DETERMINE that approval of both Ordinances are Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) as the adoption of these Ordinances has no potential for causing a significant effect on the environment. 16.PROPOSED REVISION TO THE LYNWOOD MUNICIPAL CODE TITLE 3-31 MOTEL/HOTEL Comments: The City Council will consider an Ordinance amending Title 3-31 (Motel/Hotel) of the Lynwood Municipal Code to ensure proper maintenance of motels and hotels while protecting the health, safety, and welfare of motel and hotel inhabitants. (CD) Recommendation: Staff recommends that the City Council: 1. INTRODUCE the attached Ordinance for First Reading, by title only, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 3-31 (MOTEL/HOTEL) OF THE LYNWOOD MUNICIPAL CODE." 2. DETERMINE that approval of the attached Ordinance is Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) as the adoption of this Ordinance has no potential for causing a significant effect on the environment. 17.FY 2019-21 BUDGET PROCESS CALENDAR Comments: Every year as the City prepares to develop its annual budget, a budget calendar is created. The calendar is used for managing the process of developing the City's Biennial Operation and Capital budgets. The calendar outlines processes and tasks that need to be completed in order for the budgets to be completed and adopted before the beginning of a new fiscal year. (FIN) City Council Regular Meeting - Page 4 of 268 Recommendation: Staff recommends that the City Council receive and file this report. 18.REQUEST TO ADOPT FISCAL AND BUDGET POLICIES Comments: The City of Lynwood has a responsibility to its citizens to carefully account for public funds, to manage municipal finances wisely, and to plan for the provision of services desired by the public. Sound financial policies are necessary to carry out that responsibility. (FIN) Recommendation: Staff respectfully recommends that the City Council adopt the attached resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADOPTING FISCAL AND BUDGET POLICIES”. 19.COST ALLOCATION PLAN USE POLICY Comments: Establishing a formal Cost Allocation Plan Use Policy enables the City to identify, accumulate and allocate, or develop billing rates based on allowable cost of services provided. (FIN) Recommendation: Staff respectfully recommends that the City Council adopt the attached resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADOPTING A COST ALLOCATION PLAN USE POLICY”. 20.FY 2018-19 MID-YEAR FINANCIAL REVIEW Comments: On June 26, 2018, the City Council adopted the City’s Fiscal Year 2018-19 (FY 2018-19) Annual Operating Budget. The FY 2018-19 Adopted Budget is the City’s financial operating plan that establishes the City’s goals, budget priorities, and desired service levels for the fiscal year, as well as identifies the fiscal resources necessary to achieve them. The adopted budget was based on certain assumptions and meeting expenditure and revenue projections. The Mid-Year Financial Review is presented to Council to provide an updated financial forecast for the current year. The FY 2018-19 Mid-Year Financial Review Report reports on the City’s fiscal performance through mid-year (July through December), comparing all revenues and expenditures incurred during the first two quarters of FY 2018-19 to the same period in FY 2017-18. The Mid-Year Financial Review Report also provides an updated FY 2018-19 Financial Forecast, as well as presents mid-year budget adjustments for Council’s consideration to amend the FY 2018-19 Adopted Budget. As customary, the Mid-Year Financial Review Report primarily focuses on the General Fund since this is the fund that supports traditional municipal services the City provides for residents, such as law enforcement, fire protection, public works services, parks, and recreation. (FIN) Recommendation: Staff recommends that the City Council receive the file this staff report on the City’s Mid-Year Financial Review and adopt the attached resolutions entitled: · A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD RECEIVING AND FILING THE FY 2018-19 MID-YEAR FINANCIAL REVIEW REPORTS, APPROVING THE FY 2018-19 MID-YEAR BUDGET ADJUSTMENTS TO AMEND THE FY 2018-19 ADOPTED BUDGET HERETO ATTACHED AS SCHEDULE A City Council Regular Meeting - Page 5 of 268 · A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING THE CIP BUDGET APPROPRIATION FOR FY 2018-19, TO INCREASE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS HERETO ATTACHED AS SCHEDULE B ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON MARCH 19, 2019 AT 6:00 P.M. IN THE COUNCIL CHAMBERS OF THE CITY HALL ANNEX, 11350 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. City Council Regular Meeting - Page 6 of 268 Agenda Item # 8. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: Michelle G. Ramirez, Director of Community Development SUBJECT: ZONING CODE AMENDMENT NO. 2019-01 Recommendation: Staff recommends that the City Council: 1. CONDUCT a public hearing, receive public testimony, and, after discussion, vote upon the matter at hand. 2. ADOPT the attached Ordinance entitled "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, APPROVING ZONING CODE AMENDMENT NO. 2019-01, AMENDING APPENDIX A OF CHAPTER 25 OF THE LYNWOOD MUNICIPAL CODE IN ORDER TO ESTABLISH NEW LAND USE DESIGNATIONS AND CORRECT EXISTING LAND USE DESIGNATIONS." Background: Zoning Code Amendment No. 2019-01 is a City initiated amendment to the Zoning Code (Chapter 25 of the Lynwood Municipal Code) for the purpose of amending Appendix A in order to establish new land use designations while at the same time correcting existing land uses designations. On February 26, 2019, the Planning Commission held a duly noticed public hearing and, at the conclusion, voted to recommend approval of Zoning Code Amendment No. 2019-01 to the City Council. Discussion and Analysis: The Zoning Code serves as the primary tool to implement General Plan land use policy. Zoning districts that correspond to General Plan land use designations establish use regulations, development standards, and design criteria for all types of development in Lynwood. On December 18, 2018, the City Council amended Appendix A of Chapter 25 “Zoning” of the Lynwood Municipal Code (LMC) for the purpose of amending establishing new land use designations while at the same time correcting existing land uses designations. This was not a comprehensive update as staff was trying to address those uses most commonly requested by business owners. Staff is again proposing to amend Appendix A of Chapter 25 “Zoning” of the LMC for the following reasons: City Council Regular Meeting - Page 7 of 268 add new land uses commonly requested by business owners (drinking establishments, not including alcohol sales); and add land use that was omitted from the H-M-D (Hospital-Medical-Dental) zone (restaurant uses). Again, this is not a comprehensive update. Shown below are the proposed changes. LAND USE RECOMMENDED CHANGE Alcoholic beverage on site sales as part of a family (non-age-restricted) Add to HMD (Hospital-Medical-Dental) zone Drinking establishments, no alcohol sales New Land Use permitted by right in commercial, HMD, and PF zones Drinking establishments with drive-through, no alcohol sales New Land Use permitted with CUP Restaurant, drive-through Add to HMD (Hospital-Medical-Dental) zone Restaurant, no alcohol sales Add to HMD (Hospital-Medical-Dental) zone Environmental Review The proposed Ordinance, for Zoning Code Amendment No. 2019-01, is not subject to the California Environmental Quality Act CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, sections: 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(b)(3), because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed resolution maintains the status quo and prevents changes in the environment pending the completion of the contemplated municipal code review. Because there is no possibility that this resolution may have a significant adverse effect on the environment, the adoption of this resolution is exempt from CEQA. Public Notice Process Pursuant to California Government Code Section 65091, a public hearing notice has been published in at least one newspaper of general circulation within the local agency, as the number of owners of real property within 300 feet of the project site is greater than 1,000. Fiscal Impact: There is no fiscal impact. Coordinated With: City Manager City Attorney ATTACHMENTS: Description Attachment A - Ordinance City Council Regular Meeting - Page 8 of 268 1 ORDINANCE NO. _____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA APPROVING ZONING CODE AMENDMENT NO. 2019-01, AMENDING APPENDIX A OF CHAPTER 25 OF THE LYNWOOD MUNICIPAL CODE IN ORDER TO ESTABLISH NEW LAND USE DESIGNATIONS AND CORRECT EXISTING LAND USE DESIGNATIONS THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY ORDAIN AS FOLLOWS: Section 1. 1.1 The City of Lynwood (“City”) has received increased inquiries and applications from business owners to establish and operate businesses that were not listed and/or were omitted under Appendix A of Chapter 25 “Zoning” of the Lynwood Municipal Code; and 1.2 The Lynwood Zoning Ordinance contains Chapter 25, Appendix A relating to the construction, modification, and placement of such establishments, which was enacted April 4, 2006; and 1.3 The Lynwood City Council modified Chapter 25, Appendix A of the Lynwood Municipal Code on December 18, 2019; and 1.4 The City of Lynwood initiated Zoning Code Amendment No. 2019-01; and 1.5 On March 5, 2019, the Lynwood City Council held a duly noticed and advertised public hearing to receive oral and written testimony related to Zoning Code Amendment No. 2019-01; and 1.6 The City of Lynwood Municipal Code shall be modified to reflect the Zoning Code Amendment No. 2019-01. Section 2. Findings. The following findings are adopted in support of Zone Code Amendment No. 2019-01. Based on substantial evidence presented to this City Council during its public hearing on March 5, 2019, including written and oral staff reports and the record from the public hearing, this City Council hereby finds as follows: A. Conformance with General Plan – The proposed amendment is consistent with the General Plan and its goals, objectives, policies, and programs. City Council Regular Meeting - Page 9 of 268 2 FACT: The proposed Zoning Code Amendment is consistent with the City General Plan Goal of establishing a balance of land uses that functions to provide benefit for the Lynwood community. B. That a proposed Zoning Code Amendment will not adversely affect surrounding properties. FACT: The proposed Zoning Code Amendment would ensure uses are consistent with surrounding land uses within the same general area. Section 3. Municipal Code Amendment. The City Council approves the amendment of the matrix in Chapter 25 (Zoning) Appendix A entitled “Uses By Zoning District” of the Lynwood Zoning Code to read as follows: “Land Use R-1 R-2 R-3 PRD P-1 C-2 C-2A C-3 PCD CB-1 M HMD PF OS SPA CCOA C Alcoholic beverage on site sales as part of a family (non-age-restricted) P P P P P P Drinking establishments, no alcohol sales P P P P P P P C Drinking establishments with drive- through, no alcohol sales C C C C C C C Restaurant, drive-through P P P P P P C Restaurant, no alcohol sales P P P P P P P P ... P – Permitted by Right S – Site Plan Review T – Temporary Use C – Conditional Use Permit A – Accessory Use Only Section 5. This Ordinance is not subject to the California Environmental Quality Act CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, sections: 15060(c)( 2) ( the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)( 3) ( the activity is not a project as defined in Section 15378); and 15061(b)( 3), because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. This Ordinance maintains the status quo and prevents changes in the environment pending the completion of the contemplated municipal code review. Because there is no possibility that this Ordinance may have a significant adverse effect on the environment, the adoption of this Ordinance is exempt from CEQA. Section 6. Effect of Enactment. Except as specifically provided herein, nothing contained in this Ordinance shall be deemed to modify or supersede any prior enactment of the City Council that addresses the same subject addressed herein. City Council Regular Meeting - Page 10 of 268 3 Section 7. If any section, subsection, sentence, clause or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Lynwood HEREBY DECLARES that it would have passed and adopted this Ordinance and each and all provisions thereof, irrespective of the fact that any one or more of said provisions may be declared to be invalid. Section 8. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption. Section 9. Adoption. The City Clerk shall certify to the adoption of this Ordinance and shall publish a summary of this Ordinance and post a certified copy of the full Ordinance in the office of the City Clerk at least five days prior to the adoption and within 15 days after adoption of the Ordinance, the City Clerk shall publish a summary of the Ordinance with the names of the Councilmembers voting for and against the Ordinance. This Ordinance shall take effect thirty days after the date of its adoption. Section 10. The City Clerk shall certify to the adoption of this Ordinance. PASSED, APPROVED AND ADOPTED this ____ day of ________ 2019. ________________________________ Jose Luis Solache, Mayor ATTEST: _______________________________ Maria Quinonez, City Clerk APPROVED AS TO FORM APPROVED AT TO CONTENT _______________________________ ________________________________ Noel Tapia, City Attorney Jose Ometeotl, City Manager City Council Regular Meeting - Page 11 of 268 4 STATE OF CALIFORNIA ) ) § COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Ordinance was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the _______ day of __________, 2019, and passed by the following vote: AYES: NOES: ABSENT: ABSTAIN: _______________________________ Maria Quinonez, City Clerk City Council Regular Meeting - Page 12 of 268 Agenda Item # 9. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: William Stracker, Interim Director of Public Works Lorry Hempe, Public Works Special Projects Manager SUBJECT: CONTINUE PUBLIC HEARINGS ON THE AWARD OF CONTRACT FOR ENERGY RELATED IMPROVEMENTS AND APPROVAL OF A FINANCE AGREEMENT AND RELATED LOAN DOCUMENTS Recommendation: Staff recommends that the City Council open the public hearings and continue the public hearings to the next regularly scheduled Council Meeting on March 19, 2019 at 6 pm or soon thereafter. Background: A notice of public hearing for March 5, 2019 regarding the adoption of certain findings and approving a finance agreement and related loan documents with Go Green Consultants, LLC to fund energy improvements at City of Lynwood Facility was published on February 14, 2019. A notice of public hearing for March 5, 2019 regarding approving a resolution adopting certain findings and approving energy service contract for energy related improvements to the City Facilities with Go Green Consultants, LLC was published on February 14, 2019. Discussion and Analysis: Fiscal Impact: City Council Regular Meeting - Page 13 of 268 Coordinated With: ATTACHMENTS: Description No Attachments Available City Council Regular Meeting - Page 14 of 268 Agenda Item # 10. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: John Downs, Director of Finance Lilly Hampton, Senior Accounting Technician SUBJECT: APPROVAL OF THE WARRANT REGISTER Recommendation: Staff recommends that the City Council of the City of Lynwood approve the warrant register dated March 5, 2019 for FY 2018-2019. Background: N/A Discussion and Analysis: N/A Fiscal Impact: Coordinated With: City Manager City Attorney ATTACHMENTS: Description WARRANT RUN 03-05-2019 City Council Regular Meeting - Page 15 of 268 apCkHist Void-Check Listing Page: 1 02/28/2019 7:59AM City of Lynwood Bank code: apbank Void Check# Date Vendor Status ClearNoid Date Reason-Void/Reissue Inv. Date Amount Paid Check Total -- 193904 02/07/2019 000078 OFFICE DEPOT 02/25/2019 RETURN/BANK 194083 12/17/2018 850.66 02/25/2019 242497230001 12/06/2018 349.52 02/25/2019 246920010001 12/14/2018 162.21 02/25/2019 246484838001 12/13/2018 149.81 02/25/2019 214226963001 10/08/2018 88 .06 02/25/2019 251841212001 01/02/2019 18.73 1,618.99 193937 02/19/2019 007782 GABRIELA CAMACHO 02/26/2019 MISPLACED 194092 02/28/2019 500.00 500.00 193976 02/19/2019 002887 SHEILA HARDING 02/21/2019 WRONG AMOUNT 193976 02/11/2019 260.00 02/21/2019 02/11/2019 260.00 520.00 194036 02/19/2019 011867 MICHELLE SMITH 02/26/2019 WRONG INVOICE 194093 12/20/2018 100.00 100.00 apbank Total: 2,738.99 4 checks in this report Total Checks: 2,738.99 Page: 1 City Council Regular Meeting - Page 16 of 268 vchlist 02/27/2019 Bank code: Voucher 1003852 5:33:15PM apbank Date Vendor 2/20/2019 000124 CITY OF LYNWOOD Electronic Financial Transaction List City of Lynwood Invoice PO# ------- 31995-32062 32063-32141 32142-32197 32261-32317 Page: 2 Description/Account Amount REPLENISH WORKER'S COMP A/C-31995-32062 7151.35.345.67409 8,675.08 7151.35.345.67408 157.50 7151.35.345.67411 125.78 7151.35.345 67 408 7151.35.345.67411 7151.35.345.67408 9,424.21 1,413.30 167.00 7151.35.345.67409 4,640.00 7151.35.345.67 408 4,324.93 7151.35.345.67410 -28,927.80 REPLENISH WORKER'S COMP A/C-32063-32141 7151.35.345.67406 2,982.08 7151.35.345.67409 686.76 7151.35.345.67408 938.75 7151.35.345.67411 7151.35.345.67410 7151.35.345.67408 7151.35.345.67411 7151.35.345.67409 7151.35.345.67408 7151.35.345.67409 7151.35.345.67411 6.75 -33,869.01 11,584.36 2,511.80 11,320.00 1,200.19 2,453.32 185.00 REPLENISH WORKER'S COMP A/C-32142-32197 7151.35.345.67 407 3,095.35 7151.35.345.67409 457.84 7151.35.345.67408 6,704.52 7151.35.345.67411 1,729.52 7151.35.345.67 409 4,640.00 7151.35.345.67408 466.62 7151.35.345.67 409 2,453.32 7151.35.345.67407 -17,203.19 REPLENISH WORKER'S COMP A/C-32261-32317 7151.35.345.67407 783.00 7151.35.345.67411 3,532.32 7151.35.345.67409 457.84 7151.35.345.67407 2,967.00 Page: 2 City Council Regular Meeting - Page 17 of 268 vchlist 02/27/2019 Bank code: Voucher 1003852 1003853 5:33:15PM apbank Date Vendor 2/20/2019 000124 CITY Of LYNWOOD 2/25/2019 000124 CITYOFLYNWOOD Electronic Financial Transaction List City of Lynwood Invoice PO# ------- (Continued) 32198-32260 32318-32371 32372-32453 Description/Account 7151.35.345.67408 7151.35.345.67 411 7151.35.345.67409 7151.35.345.67411 7151.35.345.67408 7151.35.345.67409 Page: Total: 3 Amount 23,977.89 150.00 4,060.00 180.00 1,413.25 1,226.66 41,091.94 REPLENISH WORKER'S COMP A/C-32198-32260 7151.35.345.67 406 1,310.00 7151.35.345.67409 457.84 7151.35.345.67408 16,406.74 7151.35.345.67411 2,314.40 7151.35.345.67409 8,221.26 7151.35.345.67411 923.20 7151.35.345.67410 -29,633.44 REPLENISH WORKER'S COMP A/C-32318-32371 7151.35.345.67 406 1,687.05 7151.35.345.67409 457.84 7151.35.345.67408 5,285.52 7151.35.345.67409 5,220.00 7151.35.345.67411 30.00 7151.35.345.67 408 656.43 7151.35.345.67406 -1,124.74 REPLENISH WORKER'S COMP A/C-32372-32453 7151.35.345.67411 614.00 7151.35.345.67 406 5,738.70 7151.35.345.67409 697.34 7151.35.345.67408 10,724.45 7151.35.345.67411 885.00 7151.35.345.67 409 5,800.00 7151.35.345.67411 180.00 7151.35.345.67408 116.11 7151.35.345.67 406 -854.50 Total: 36,113.20 Page: 3 City Council Regular Meeting - Page 18 of 268 vchlist 02/27/2019 Bank code: Voucher 1003854 5:33:15PM apbank Date Vendor 2/25/2019 009720 CITY OF LYNWOOD 3 Vouchers for bank code : 3 Vouchers in this report apbank Electronic Financial Transaction List City of Lynwood Invoice PO# 1741-1752 1753-1760 Page: 4 Description/Account Amount REPLENISH LIABILITY A/C-1741-1752 7151 .35.350.67410 77,500.00 7151.35.350.67406 6,311 .19 7151.35.350.67 410 1,300.00 7151.35.350.67411 183.00 REPLENISH LIABILITY A/C-1753-1760 7151 .35.350.67410 3,896.50 Total : 89,190.69 Bank total: 166,395.83 Total vouchers : 166,395.83 Page: 4 City Council Regular Meeting - Page 19 of 268 vchlist Prepaid-Check List Page: 5 02/27/2019 4:26:51PM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194066 2/19/2019 007551 AFSCME DISTRICT COUNCIL 36 007551010319 EMPLOYEE CONTRIBUTION-PD-1/03/2019 1011.20144 2,028.27 007551011719 EMPLOYEE CONTRIBUTION-PD-1/17/2019 1011 .20144 2,017.89 Total: 4,046.16 194067 2/19/2019 010049 AMERICAN CANCER SOCIETY, INC. 010049010319 EMPLOYEE CONTRI BUTION-PD-1 /03/2019 1011.20146 10.17 Total: 10.17 194068 2/19/2019 004986 BIOMETRICS4ALL, INC COLYN0056 LIVE SCAN 05-001602 1011.35.335.65040 14.25 Total: 14.25 194069 2/19/2019 001330 CANON FINANCIAL SERVICES, INC. 19746140 PRINTERS LEASE AND MAINTENANCE AGREEMENT 12-000241 1011.65.290.63025 736.52 12-000241 6051.65.290.63025 147.30 12-000241 6051.65.290.63030 286.14 12-000241 1011.65.290.63030 1,144.53 Total: 2,314.49 194070 2/19/2019 007552 CITY EMPLOYEES ASSOCIATES 007552010319 EMPLOYEE CONTRIBUTION-PD-1/03/2019 1011 .20143 225.00 007552011719 EMPLOYEE CONTRIBUTION-PD-1/17/2019 1011 .20143 225.00 Total: 450.00 194071 2/19/2019 001357 EMPLOYMENT DEVELOPMENT DEPT. L0720515168 UNEMPLOYMENT INSURANCE 7151.35.360.67410 2,360.00 Total: 2,360.00 194072 2/19/2019 011921 INCORPORATED, KEN'S CATERING 010019-01 CATERING SERVICE 08-004038 1011.60. 720.64399 900.00 Total : 900.00 194073 2/19/2019 011192 INSURANCE COMPANY, FIDELITY 163788152 VISION PREMIUM-2/2019 Page: 5 City Council Regular Meeting - Page 20 of 268 vchlist 02/27/2019 Bank code : Voucher 194073 194074 194075 194076 194077 4:26:51PM apbank Date Vendor 2/19/2019 011192 INSURANCE COMPANY, FIDELITY 2/19/2019 010048 LEGAL SHIELD 2/19/2019 010069 NATIONWIDE RETIREMENT SOLUTION 2/19/2019 000163 SOUTHERN CALIFORNIA EDISON 2/19/2019 001302 U.S. BANK Prepaid-Check List City of Lynwood Invoice (Continued) 010048010319 010048011719 010069011719 0001630021219 001302011419 PO# Page: 6 Description/Account Amount 7151.35.355.64012 988.53 1011.20139 1,464.93 Total: 2,453.46 EMPLOYEE CONTRIBUTION-PD-1 /03/2019 1011.20146 70.30 EMPLOYEE CONTRIBUTION-PD-1/17/2019 1011.20146 70.30 Total: 140.60 EMPLOYEE CONTRI BUTION-PD-1 /17 /2019 1011.20142 2,525.00 Total: 2,525.00 LIGHT & POWER SERVICES-2/2019 2051.45.430.65001 15.00 2651.45.425.65001 26.00 2051.45.430.65001 90.46 6051.45.450.65001 9,899.55 2051.45.430.65001 428.02 2651.45.425.65001 43.72 2051.45.430.65001 404.01 1011.60.710.65001 1,452.48 2651.45.425.65001 759.18 6051.45.450.65001 2,311.80 2651.45.425.65001 2,977.17 Total: 18,407.39 BANKCARD CHARGES-12/18/2018-1/14/2019 1011.25.205.67950 147.81 1011.35.330.67950 81.23 1011.65.290.65020 79.99 1011.30.275.65040 110.00 1011.10.101.64015 140.01 1011.25.205.64015 485.00 1011.10.101.64015 1,279.15 Page: 6 City Council Regular Meeting - Page 21 of 268 vchlist 02/27/2019 Bank code: Voucher 194077 194078 194079 194080 194081 194082 4:26:51PM apbank Date Vendor 2/19/2019 001302 U.S. BANK 2/20/2019 011927 AMERICAN FIDELITY ASSURANCE CO 2/20/2019 011927 AMERICAN FIDELITY ASSURANCE CO 2/20/2019 003372 CITY OF LYNWOOD 2/20/2019 003372 CITY OF LYNWOOD 2/21/2019 009742 UNIFIRST CORPORATION Prepaid-Check List City of Lynwood Invoice (Continued) 011927010319-1 011927011719-1 011927010319 011927011719 003372022219 003372022219-1 3242162860 3242162861 3242162862 3242162863 3242162864 3242162865 PO# 06-007563 06-007563 06-007563 06-007563 06-007563 06-007563 Page: 7 Description/Account Amount 1011.35.330.62015 190.00 1011.10.101.65020 283.84 Total: 2,797.03 EMPLOYEE CONTRIBUTION-PE-1/3/2019 1011.20140 1,991.82 EMPLOYEE CONTRIBUTION-PE-1 /17/2019 1011.20140 1,746.94 Total: 3,738.76 EMPLOYEE CONTRIBUTION-PE-1/03/2019 1011.20140 922.90 EMPLOYEE CONTRIBUTION-PE-1/17/2019 1011.20140 922.90 Total: 1,845.80 CELEBRATION OF CHILDREN WITH SPECIAL NEEDS 1011.60.701.64020 1,500.00 Total: 1,500.00 CELEBRATION OF CHILDREN WITH SPECIAL NEEDS 1011.60.701.64020 500.00 Total: 500.00 UNIFORM SERVICE AND SUPPLIES 2051.45.430.60040 10.94 UNIFORM SERVICE AND SUPPLIES 6051.45.450.60040 22.29 UNIFORM SERVICE AND SUPPLIES 1011.45.415.60040 26.61 UNIFORM SERVICE AND SUPPLIES 2701.45.610.60040 52.20 UNIFORM SERVICE AND SUPPLIES 2051.45.410.60040 34.40 UNIFORM SERVICE AND SUPPLIES 1011.45.415.64399 41.93 Page: 7 City Council Regular Meeting - Page 22 of 268 vchlist Prepaid-Check List Page: 8 02/27/2019 4:26:51PM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194082 2/21/2019 009742 UNIFIRST CORPORATION (Continued) 3242165861 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.430.60040 10.94 3242165862 UNIFORM SERVICE AND SUPPLIES 06-007563 6051.45.450.60040 22.29 3242165864 UNIFORM SERVICE AND SUPPLIES 06-007563 2701.45.610.60040 52.20 3242165866 UNIFORM SERVICE AND SUPPLIES 06-007563 1011.45.415.64399 50.03 3242168888 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.430.60040 10.94 3242168890 UNIFORM SERVICE AND SUPPLIES 06-007563 1011 .45.415.60040 23.64 3242168891 UNIFORM SERVICE AND SUPPLIES 06-007563 2701.45.610.60040 52.20 3242168892 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.410.60040 32.76 3242168893 UNIFORM SERVICE AND SUPPLIES 06-007563 1011.45.415.64399 41.93 3242171920 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.430.60040 10.94 3242171921 UNIFORM SERVICE AND SUPPLIES 06-007563 6051.45.450.60040 19.05 3242171922 UNIFORM SERVICE AND SUPPLIES 06-007563 1011.45.415.60040 23.64 3242171923 UNIFORM SERVICE AND SUPPLIES 06-007563 2701.45.610.60040 52.20 3242171924 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.410.60040 32.76 3242171925 UNIFORM SERVICE AND SUPPLIES 06-007563 1011.45.415.64399 41.93 3242174929 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.430.60040 10.94 3242174930 UNIFORM SERVICE AND SUPPLIES 06-007563 6051.45.450.60040 19.05 3242174931 UNIFORM SERVICE AND SUPPLIES 06-007563 1011.45.415.60040 23.64 Page: 8 City Council Regular Meeting - Page 23 of 268 vchlist Prepaid-Check List Page: 9 02/27/2019 4:26:51PM City of Lynwood Bank code : apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194082 2/21/2019 009742 UNI FIRST CORPORATION (Continued) 3242174932 UNIFORM SERVICE AND SUPPLIES 06-007563 2701.45.610.60040 52.20 3242174933 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.410.60040 32.76 3242174934 UNIFORM SERVICE AND SUPPLIES 06-007563 1011 .45.415.64399 41.93 3242177970 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.430.60040 10.94 3242177971 UNIFORM SERVICE AND SUPPLIES 06-007563 6051.45.450.60040 19.05 3242177972 UNIFORM SERVICE AND SUPPLIES 06-007563 1011.45.415.60040 23.64 3242177973 UNIFORM SERVICE AND SUPPLIES 06-007563 2701.45.610.60040 52.20 3242177974 UNIFORM SERVICE AND SUPPLIES 06-007563 2051.45.410.60040 32.76 3242177975 UNIFORM SERVICE AND SUPPLIES 06-007563 1011.45.415.64399 32.12 Total : 1,017.05 194083 2/25/2019 000078 OFFICE DEPOT 214226963001 OFFICE SUPPLIES 02-002212 6401.30.315.65020 44.03 02-002212 1052.30.315.65020 44.03 242497230001 OFFICE SUPPLIES 11-001275 1011.51.501.65015 349.52 246484838001 OFFICE SUPPLIES 06-007522 1011.45.401.65015 74.81 06-007522 1011.45.405.65015 75.00 246827238001 PLAN RACK CLAMPS 06-007684 1011.45.405.65020 850.66 246920010001 OFFICE SUPPLIES 08-003992 1011.60.740.65015 162.21 251841212001 OFFICE SUPPLIES 06-007522 1011.45.405.65015 18.73 Total: 1,618.99 Page: 9 City Council Regular Meeting - Page 24 of 268 vchlist Prepaid-Check List Page: 10 02/27/2019 4:26:51PM City of Lynwood Bank code : apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194084 2/25/2019 000141 AT&T 3378414401-020719 TELEPHONE SERVICES-2/2019 6051.45.450.64501 33.23 3378414402-020719 TELEPHONE SERVICES-2/2019 6051.45.450.64501 33.23 Total: 66.46 194085 2/25/2019 006399 AT&T 000012557119 TELEPHONE SERVICE-1/2019 1011.65.290.64501 406.43 6051.45.450.64501 406.43 000012558333 TELEPHONE SERVICE-1/2019 1011.65.290.64501 183.31 000012589944 TELEPHONE SERVICE-1/2019 1011.65.290.64501 21 .61 000012593006 TELEPHONE SERVICE-1/2019 1011.65.290.64501 77.90 000012593008 TELEPHONE SERVICE-1/2019 1011 .65.290.64501 20.71 000012593009 TELEPHONE SERVICE-1/2019 1011 .65.290.64501 176.01 000012593011 TELEPHONE SERVICE-1/2019 6051.45.450.64501 57.19 000012593015 TELEPHONE SERVICE-1/2019 6051.45.450.64501 77.90 000012593019 TELEPHONE SERVICE-1/2019 1011 .65.290.64501 20.71 000012593125 TELEPHONE SERVICE-1/2019 1011 .65.290.64501 39.78 000012593126 TELEPHONE SERVICE-1/2019 1011.65.290.64501 39.78 000012593196 TELEPHONE SERVICE-1/2019 1011 .65.290.64501 39.80 Total: 1,567.56 194086 2/25/2-019 001330 CANON FINANCIAL SERVICES, INC. 19746141 MULTIFUNCTION PRINTER LEASE 08-003900 1011 .60.701 .63030 262.81 Total: 262.81 Page: 10 City Council Regular Meeting - Page 25 of 268 vchlist Prepaid-Check List 02/27/2019 4:26:51PM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# ------- 194087 2/25/2019 011188 INSURANCE COMPANY, THE LINCOLN 011188033119 194088 2/25/2019 011443 L.A. COUNTY REGISTRAR-RECORDER 15332 11-001294 194089 2/25/2019 011443 L.A. COUNTY REGISTRAR-RECORDER 15060 11-001295 194090 2/25/2019 000163 SOUTHERN CALIFORNIA EDISON 000163022119 Page: 11 Description/Account Amount EMPLOYEE PREMIUM FOR LTD-3/2019 1011.20130 Total: 2,926.83 2,926.83 NOTICE OF EXEMPTION -COUNTY FILING FEE 1011.51 .505.62015 75.00 Total: 75.00 NOTICE OF EXEMPTION -COUNTY FILING FEE 1011.51.505.62015 75.00 Total : 75.00 LIGHT & POWER SERVICES-2/2019 2051.45.430.65001 50.51 2651.45.425.65001 855.82 2051.45.430.65001 524.29 2651.45.425.65001 398.07 2051.45.430.65001 166.90 1011.60. 7 40.65001 1,799.33 2051.45.430.65001 384.40 2651.45.425.65001 371.48 1011.45.415.65001 86.61 6051.45.450.65001 43.01 2051.45.430.65001 425.49 1011 .60.745.65001 1,579.75 1011 .60.710.65001 711.48 2701.45.610.65001 296.43 2051.45.430.65001 206.87 2651.45.425.65001 93.77 6051.45.450.65001 42.84 2051.45.430.65001 94.21 6051.45.450.65001 1,522.28 1011.60. 710.65001 3,080.02 2651.45.425.65001 94.68 2051.45.430.65001 2,066.23 2651.45.425.65001 682.07 2051.45.430.65001 22.77 Page: 11 City Council Regular Meeting - Page 26 of 268 vchlist 02/27/2019 4:26:51PM Bank code : apbank Voucher 194090 194091 194092 194093 Date Vendor 2/25/2019 000163 SOUTHERN CALIFORNIA EDISON 2/26/2019 001224 STANDARD INSURANCE COMPANY 2/26/2019 007782 CAMACHO, GABRIELA 2/27/2019 011867 SMITH, MICHELLE 28 Vouchers for bank code : 28 Vouchers in this report apbank Prepaid-Check List City of Lynwood Invoice (Continued) 001224033119 007782022819 13KFRCNJ PO# Description/Account 2651.45.425.65001 2051.45.430.65001 2651.45.425.65001 2051.45.430.65001 1011.60.720.65001 2051.45.430.65001 Total: LIFE INSURANCE PREMIUM-3/2019 7151.35.355.64012 1011.20138 Total: Page: 12 Amount 770.15 114.56 673.79 78.56 1,522.30 72.54 18,831.21 757.00 1,616.00 2,373.00 ELECTRONIC MEDIA-AUTO EXPENSES-2/2019 1011.20.110.60030 250.00 250.00 500.00 1011.20.110.60025 Total: REFUND-BATEMAN HALL RENTAL 1011.60.33215 Total: Bank total: Total vouchers : 100.00 100.00 73,417.02 73,417.02 Page: 12 City Council Regular Meeting - Page 27 of 268 vchlist Check List 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice 194094 3/5/2019 011740 & CRANE TECHONOLOGY, INC., 16240 194095 3/5/2019 000743 ADMINISTRATIVE SVCS. CO-OP 2991 194096 3/5/2019 000370 ALATORRE, SALVADOR 000370033119 194097 3/5/2019 000956 ALL AMERICAN ASPHALT 2R1 3R1 194098 3/5/2019 007439 ALL CITY MANAGEMENT SVCS, INC. 59352 194099 3/5/2019 01 1887 ALVARADO-FLORES 981OGK6K 194100 3/5/2019 002452 AMERICAN LANGUAGE SVCS. 0054791 194101 3/5/2019 011880 AMEZCUA, NANCY 399125852 PO# -- 06-007671 08-003867 06-007600 06-007600 06-007600 06-007600 11-001174 01-001360 Page: 13 Description/Account Amount INSPECTION FOR 300C NATIONAL CRANE 7011.45.420.63025 Total: SENIOR TRANSPORTATION SERVICE 2401 .60.725.62015 Total: 375.00 375.00 8,098.55 8,098.55 ELECTRONIC/MEDIA-AUTO EXPENSES-3/2019 1011.10.101.60025 250.00 250.00 500.00 1011 .10.101 .60030 Total: VIRGINIA AVENUE STREET IMPROVEMENT PROJECT 4011 .68.049.62015 528,775.00 4011 .20601 -52,877 .50 VIRGINIA AVENUE STREET IMPROVEMENT PROJECT 4011.68.049.62015 99,810.00 4011.20601 -9,981 .00 Total : 565,726.50 SCHOOL CROSSING GUARD SERVICES-1/2019 2051 .51 .365.62015 Total: REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 TRANSLATION SERVICES 1011 .25.250.62015 Total: Total : REFUND-PARKING CITATION TICKET 1011 .51.34150 Total: Page: 21 ,574.80 21,574.80 250.00 250.00 375.20 375.20 68.78 68.78 13 City Council Regular Meeting - Page 28 of 268 vchlist Check List Page: 14 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194102 3/5/2019 004536 APWA 827505022920 MEMBERSHIP DUES 1011.45.415.65040 126.50 6051.45.450.65040 126.00 Total: 252.50 194103 3/5/2019 005344 AT&T MOBILITY 02082019 CELL PHONE SERVICE-1/2019 12-000233 1011 .65.290.64501 1,370.84 12-000233 6051 .65.290.64501 1,370.85 Total: 2,741.69 194104 3/5/2019 004285 AVANT GARDE, INC. 5180 HOUSING/GRANT CONSUL Tl NG SERVICES-11/2018 11-001119 2941.51.285.62015 5,512.50 5296 HOUSING/GRANT CONSULTING SERVICES-1/2019 11 -001119 2941.51 .285.62015 4,025.00 11-001119 2961 .51 .865.62015 861 .25 5297 HOUSING/GRANT CONSULTING SERVICES-1/2019 11-001119 2941 .51.285.62015 1,321 .25 5298 LABOR COMPLIANCE-1/2019 06-007216 4011 .67.993.62015 672.50 5299 LABOR COMPLIANCE-ATP LINKAGES TO CIVIC CENTER 06-007060 4011 .68.036.62015 1,342.50 5300 LABOR COMPLIANCE-HSIP 5250(024) IMPERIAL 06-007059 4011.68.035.62015 665.00 5302 OLAN DA AVE LABOR COMPLIANCE 06-007701 4011 .67.908.62015 1,500.00 5302-1 VIRGINIA AVE LABOR COMPLIANCE 06-007703 4011 .68.049.62015 1,900.00 5303 SLURRY SEAL LABOR COMPLIANCE 06-007698 4011 .68.047.62015 5,400.00 5304 LOUISE STREET LABOR COMPLIANCE 06-007699 4011.67.912.62015 1,560.00 5306 DUNCAN AVE LABOR COMPLIANCE 06-007700 4011.67.907.62015 3,000.00 Total: 27,760.00 194105 3/5/2019 01 1918 AVILA, JORGE 5467 REFUND-PARKING CITATION 1011 .51 .34135 100.00 Page: 14 City Council Regular Meeting - Page 29 of 268 vchlist 02/28/2019 10:37:02AM Bank code: Voucher 194105 194106 194107 194108 194109 194110 194111 194112 194113 apbank Date Vendor 3/5/2019 011918 011918 AVILA, JORGE 3/5/2019 011454 BEST POOL SERVICE, LLC 3/5/2019 011894 BISHOP, JAMES 3/5/2019 000884 BLUE DIAMOND MATERIALS 3/5/2019 011893 BOUGERE, ROSALIE 3/5/2019 011903 BRAND, JONATHAN 3/5/2019 007750 CALIFORNIA CONSUL TING, INC. 3/5/2019 011886 CARRILLO, SONIA 3/5/2019 011834 CASANOVA, JORGE Check List City of Lynwood Invoice (Continued) 10012673 JSE9TPOY 1413516 YBZ3Y900 233130671 2823 98UF7BSW 011834033119 PO# ------- 06-007444 06-007402 01-001382 01-001382 01-001382 01-001382 01-001382 01-001382 Page: 15 Description/Account Amount Total: 100.00 LYNWOOD POOL & BATEMAN HALL FOUNTAIN MAINT 1011 .45.415.63025 Total: REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 OPERATING SUPPLIES 2051.45.410.65020 Total: Total : REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 Total: REFUND-PARKING CITATION TICKET 1,352.35 1,352.35 100.00 100.00 1,603.48 1,603.48 100.00 100.00 1011.51.34110 68.78 Total : 68.78 GRANT WRITING SERVICES-2/2019 1011.40.215.62015 1011.45.405.62015 1011.51.505.62015 1011.51.815.62015 1011.60.701.62015 6051.45.450.62015 Total : 721.51 360.76 721.51 721.51 721.51 360.76 3,607.56 REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 40.00 Total: 40.00 ELECTRON IC/MEDIA-AUTO EXPENSES-3/2019 1011.10.101.60025 250.00 1011.10.101.60030 250.00 Page: 15 City Council Regular Meeting - Page 30 of 268 vchlist Check List 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice 194113 3/5/2019 011834 011834 CASANOVA, JORGE (Continued) 194114 3/5/2019 001249 CASTRO, AIDE 001249033119 194115 3/5/2019 010205 CASTRO, JESUS 010205012219 194116 3/5/2019 000955 CENTRAL BASIN MUNICIPAL WATER LYN-JAN19 194117 3/5/2019 008107 CHICAGO TITLE COMPANY 0911809808-2 194118 3/5/2019 001168 CINTAS CORPORATION NO. 2 5012953066 8404008213 8404008214 194119 3/5/2019 004168 CINTAS FIRE PROTECTION 0F19125787 194120 3/5/2019 003372 CITY OF LYNWOOD 02136000 02315962 02315968 02315970 PO# ------- 06-007414 11-001204 08-003865 08-003865 08-004009 06-007451 11-001287 11-001287 11-001287 Page: 16 Description/Account Amount Total : 500.00 ELECTRONIC/MEDIA-AUTO EXPENSES-3/2019 1011.10.101.60025 250.00 1011.10.101.60030 MILEAGE REIMBURSEMENT 1011.60. 705.64015 Total: Total: IMPORTED WATER PURCHASE 6051.45.450.67415 Total : 250.00 500.00 39.35 39.35 6,893.72 6,893.72 TITLE REPORTS FOR HOUSING REHAB PROGRAM 2961.51.865.62015 125.00 Total: 125.00 FIRST AID SUPPLIES 1011.60.715.65020 118.07 FIRST AID SUPPLIES 1011.60. 715.65020 96.28 FIRST AID SUPPLIES 1011.60.720.65020 190.07 Total: 404.42 FIRE PROTECTION/ ALARM MONITORING SERVICE 1011.45.415.64399 50.00 Total : 50.00 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 534.95 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 318.12 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 1,801.86 URBAN FARMING BUSINESS LICENSE FEES Page: 16 City Council Regular Meeting - Page 31 of 268 vchlist 02/28/2019 10:37:02AM Check List City of Lynwood Bank code: Voucher 194120 194121 194122 194123 apbank Date Vendor Invoice 3/5/2019 003372 CITY OF LYNWOOD (Continued) 02315975 02315982 02315983 02316049 02316514 02316515 3/5/2019 001571 CLINICAL LAB OF SAN BERNARDINO 967067 3/5/2019 009563 COMMISSIONER/WEIGHTS & MEASURE, 01461 H 3/5/2019 010754 COOL IMAGE WATER, OBA/ AMERICAN 000193 000361 000389 000411 000412 000413 000414 PO# ------- 11-001288 11-001287 11-001287 11-001287 11-001287 11-001287 11-001287 06-007415 06-007736 03-000374 03-000374 03-000374 08-003808 08-003808 03-000374 Page: 17 Description/Account Amount 3001.51.505.62015 353.00 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 385.62 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 959.34 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 318.12 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 385.62 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 357 .83 URBAN FARMING BUSINESS LICENSE FEES 3001.51.505.62015 425.33 WATER SAMPLES TESTING 6051.45.450.64399 Total : 5,839.79 Total: 1,863.00 1,863.00 PESTICIDE WORKER SAFETY TRAINING 2051.45.410.64010 447.45 447.45 PURIFIED WATER PURCHASE 1011.15.105.65020 PURIFIED WATER PURCHASE 1011.15.105.65020 PURIFIED WATER PURCHASE 1011.15.105.65020 DRINKING WATER SERVICE 1011.60.710.65020 DRINKING WATER SERVICE 1011.60. 7 40.65020 PURIFIED WATER PURCHASE 1011.15.105.65020 DRINKING WATER SERVICE Total: 10.80 10.80 4.40 4.40 10.80 9.80 Page: 17 City Council Regular Meeting - Page 32 of 268 vchlist Check List Page: 18 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194123 3/5/2019 010754 COOL IMAGE WATER, DBA/ AMERICAN (Continued) 11-001120 1011.51.515.65020 15.70 11-001120 1011.51.605.65020 15.70 000415 DRINKING WATER SERVICE 01-001361 1011.10.101 .65020 38.90 01-001361 1011.25.205.65020 38.90 000417 DRINKING WATER SERVICE 08-003808 1011.60.745.65020 10.80 000418 DRINKING WATER SERVICE 11-001120 1011.51.501.65020 13.00 11-001120 1011.51.515.65020 26.00 11-001120 1011.51.605.65020 13.00 000419 DRINKING WATER SERVICE 08-004006 1011.60.701.65020 15.20 000420 DRINKING WATER SERVICE 02-002184 6051 .30.315.65020 36.80 000421 DRINKING WATER SERVICE 08-004006 1011.60.710.65020 15.20 Total: 290.20 194124 3/5/2019 000138 DAILY JOURNAL CORPORATION B3212027 ADVERTISEMENT SERVICE 06-007737 6051.45.450.62025 159.60 83214090 NOTICE OF PUBLIC HEARING 06-007738 1011.45.401.62025 117.60 B3215037 PUBLIC HEARING NOTICE 11-001289 2941.51.285.62025 971 .92 Total: 1,249.12 194125 3/5/2019 011879 DENNIS, SAAB 101181 REFUND-PARKING CITATION TICKET 1011 .51.34150 68.78 Total: 68.78 194126 3/5/2019 011743 ENVIRONMENTAL DETECTIVE INC. 18012011 ASBESTOS-LEAD SU RVEY-12/2018 06-007739 4011.68.059.64399 6,500.00 Total: 6,500.00 194127 3/5/2019 000028 EXCEL PAVING COMPANY 16-25344 STREET IMPROVEMENT Page: 18 City Council Regular Meeting - Page 33 of 268 vchlist Check List Page: 19 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount ----- 194127 3/5/2019 000028 EXCEL PAVING COMPANY (Continued) 06-006771 4011.67.997.62015 89,396.00 06-006771 4011.20601 -5,594.32 16-25344-1 TRAFFIC SIGNAL IMPROVEMENT 06-007694 4011.68.038.62015 22,490.37 Total: 106,292.05 194128 3/5/2019 011920 EXTRAORDINAIRE INVESTMENTS INC 000352-0086 REFUNDABLE DEPOSIT 1011.45.33165 489.89 Total: 489.89 194129 3/5/2019 003334 FED EX 6-448-30776 COURIER SERVICES 01-001375 1011.25.205.64399 36.94 6-462-1 0879 COURIER SERVICES 02-002168 1011 .30.270.64399 27.91 Total: 64.85 194130 3/5/2019 001393 FERGUSON ENTERPRISES, INC. 7127458 MATERIALS AND SUPPLIES 06-007427 1011.45.415.65020 115.87 7127562 MATERIALS AND SUPPLIES 06-007427 1011.45.415.65020 311.92 7140027 MATERIALS AND SUPPLIES 06-007427 6051.45.450.65020 43.03 Total: 470.82 194131 3/5/2019 000372 FIRE DEPARTMENT, LOS ANGELES C0008844 FIRE PROTECTION SERVICES-3/2019 01-001368 1011.40.245.62015 533,023.50 Total: 533,023.50 194132 3/5/2019 000003 FIRST CHOICE SERVICES 946511 COFFEE SERVICES 01-001357 1011 .25.205.67950 184.63 01-001357 1011.10.101.67950 184.63 Total: 369.26 194133 3/5/2019 011912 FRANCO, RAMON 91914 REFUND-PARKING CITATION TICKET 1011.51.34110 69.00 Total: 69.00 Page: 19 City Council Regular Meeting - Page 34 of 268 vchlist Check List Page: 20 02/28/2019 10:37:02AM City of Lynwood Bank code : apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194134 3/5/2019 006902 FULMORE, DENNIS 5AKHAYX9 BARTENDER SERVICE 08-003794 1011 .60.740.62064 250.00 Total : 250.00 194135 3/5/2019 003983 GALLS QUARTERMASTER 011431344 PUBLIC SAFETY UNIFORMS 11-001290 1011 .51 .515.60040 181.88 011431345 PUBLIC SAFETY UNIFORMS 11-001290 1011.51.515.60040 121 .25 BC0731993 PUBLIC SAFETY UNIFORMS 11-001290 1011.51.515.60040 1,917.00 BC0748557 PUBLIC SAFETY UNIFORMS 11-001290 1011.51.605.60040 88.19 BC0766759 PUBLIC SAFETY UNIFORMS 11-001300 1011.51.605.60040 330.69 Total: 2,639.01 194136 3/5/2019 011891 GARCIA, KENIA 5TEK6KFW REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 150.00 Total: 150.00 194137 3/5/2019 000593 GLADWELL GOVERNMENTAL SVCS,INC 3859 GOVERNMENT SERVICES RECORD RETENTION 03-000378 1011.15.105.64399 250.00 4070 GOVERNMENT SERVICES RECORD RETENTION 03-000378 1011.15.105.64399 250.00 Total: 500.00 194138 3/5/2019 011877 GONZALEZ, MARTIN 333123930 REFUND-PARKING CITATION TICKET 1011.51 .34105 54.00 Total: 54.00 194139 3/5/2019 011901 GONZALEZ, YOLANDA 255126767 REFUND-PARKING CITATION TICKET 1011.51.34110 124.00 Total: 124.00 194140 3/5/2019 001510 GRAINGER, INC. 9073403801 OPERATING SUPPLIES 06-007462 2051.45.410.65020 121.25 9074427825 OPERATING SUPPLIES Page: 20 City Council Regular Meeting - Page 35 of 268 vchlist Check List Page: 21 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194140 3/5/2019 001510 GRAINGER, INC. (Continued) 06-007462 2051.45.410.65020 42.47 9075432287 OPERATING SUPPLIES 06-007462 2051.45.410.65020 424.68 9075831702 OPERATING SUPPLIES 06-007462 2051.45.410.65020 424.68 9077045772 OPERATING SUPPLIES 06-007462 1011.45.415.65020 471.11 9080249585 OPERATING SUPPLIES 06-007462 1011.45.415.65020 77.50 9084666230 OPERATING SUPPLIES 06-007462 6051.45.450.65020 35.09 Total: 1,596.78 194141 3/5/2019 011883 GUTIERREZ, MIGUEL & MINERVA 388125228 REFUND-PARKING CITATION TICKET 1011.51.34150 57.75 Total: 57.75 194142 3/5/2019 011896 HAMPTON TEDDER ELECTRIC 000349-0124 REFUNDABLE DEPOSIT 1011.45.33165 9.00 Total: 9.00 194143 3/5/2019 002887 HARDING, SHEILA 002887032219 PER DIEM-GIOA 1011.20.110.64015 260.00 Total: 260.00 194144 3/5/2019 001895 HARRINGTON DECORATING CO, INC 180050 EXPEDITED FREIGHT CHARGES 06-007740 1011.45.415.64399 1,700.00 Total: 1,700.00 194145 3/5/2019 011890 HAYES, REASHELLA U7P4TYOS REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 100.00 Total: 100.00 194146 3/5/2019 011898 HERNANDEZ, CINDY 3JXROIAE REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 80.00 Total: 80.00 Page: 21 City Council Regular Meeting - Page 36 of 268 vchlist Check List Page: 22 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194147 3/5/2019 011914 HERNANDEZ, JESUS MONTES 233130777 REFUND-PARKING CITATION TICKET 1011.51 .34110 68.78 Total: 68.78 194148 3/5/2019 011904 HERNANDEZ, LONA ALBERTO 233127449 REFUND-PARKING CITATION TICKET 1011.51 .34150 283.00 Total: 283.00 194149 3/5/2019 011889 HERNANDEZ, MARIA 4932 REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 350.00 Total: 350.00 194150 3/5/2019 011916 HERNANDEZ, NOEL PACHECO 233130708 REFUND-PARKING CITATION TICKET 1011.51.34110 68.78 Total: 68.78 194151 3/5/2019 011549 HERNANDEZ, PEDRO 1723401-1 REFUNDABLE DEPOSIT 1011.26101 4,340.00 Total: 4,340.00 194152 3/5/2019 011902 HERNANDEZ, YANIRA 255129472 REFUND-PARKING CITATION TICKET 1011.51.34105 68.78 Total: 68.78 194153 3/5/2019 003338 HILLYARD-LOS ANGELES 603277560 JANITORIAL & SANITARY SUPPLIES 08-003814 1011.60.705.65020 1,006.54 603299579 JANITORIAL & SANITARY SUPPLIES 06-007406 1011.45.415.65020 1,289.99 Total: 2,296.53 194154 3/5/2019 003315 HOME DEPOT CREDIT SERVICE 003315021319 OPERATING SUPPLIES 08-004015 1011.60.701.63202 1,879.00 Total: 1,879.00 194155 3/5/2019 003315 HOME DEPOT CREDIT SERVICE 003315020619 COMMUNITY GARDEN SUPPLIES 08-004016 1011.60. 701.63202 1,195.87 Total: 1,195.87 Page: 22 City Council Regular Meeting - Page 37 of 268 vchlist Check List Page: 23 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194156 3/5/2019 011881 HOWIE, TA 366125392 REFUND-PARKING CITATION TICKET 1011.51.34110 69.00 Total: 69.00 194157 3/5/2019 001681 HUMAN SERVICES ASSOCIATION 0131196 SENIOR MEALS PROGRAM-1/2019 08-003847 1011 .60. 720.62015 1,843.75 Total: 1,843.75 194158 3/5/2019 000676 IDEAL LIGHTING SUPPLY, INC. 115367 ELECTRICAL SUPPLIES 06-007403 1011.45.415.65020 175.30 Total: 175.30 194159 3/5/2019 000353 INFOSEND, INC. 148378 PRINTING/MAILING OF UTILITY BILLS-1/2019 02-002202 1052.30.315.62015 291.06 02-002202 6051 .30.315.62015 291 .37 02-002202 6401.30.315.62015 291.37 02-002202 1052.30.315.65035 931 .95 02-002202 6051.30.315.65035 931.95 02-002202 6401.30.315.65035 931.95 Total: 3,669.65 194160 3/5/2019 005848 INFRASTRUCTURE ENGINEERS 23354 MONUMENT SIGN DESIGN 06-007776 4011.68.060.62015 19,875.00 23397 MONUMENT SIGN DESIGN 06-007776 4011 .68.060.62015 5,012.30 23488 MONUMENT SIGN DESIGN 06-007776 4011 .68.060.62015 3,077.70 23594-1 CITY ENGINEERING SERVICES-10/2018 06-007529 4011.67.911 .62015 490.85 06-007529 4011 .67.912.62015 720.00 06-007529 4011 .67 .993.62015 979.65 06-007529 4011 .68.039.62015 2,620.00 06-007529 4011.68.051.62015 5,483.70 06-007529 4011.68.044.62015 1,260.30 06-007529 4011.67.964.62015 5,953.50 23594-1-1 CITY ENGINEERING SERVICES-10/2018 06-007183 4011.67.993.62015 271.35 Page: 23 City Council Regular Meeting - Page 38 of 268 vchlist 02/28/2019 10:37:02AM Bank code: apbank Voucher Date Vendor 194160 3/5/2019 005848 INFRASTRUCTURE ENGINEERS 194161 3/5/2019 011885 JACKSON, DESTINEE 194162 3/5/2019 001269 JOHN L. HUNTER & ASSOCIATES 194163 3/5/2019 003331 L.A. COUNTY SHERIFF DEPT. Check List City of Lynwood Invoice (Continued) 23680-1 23680-1-1 23804 23809 23822 OW12KXPL LYNAR1218 LYNDGR1218 192410CY 192509CY 192538CY 192539CY PO# 06-007183 06-007183 06-007183 06-007529 06-007529 06-007529 06-007529 11-001297 11-001297 06-007744 06-007574 06-007469 01-001371 01-001371 01-001369 01-001369 Page: Description/Account 4011.67.997.62015 CITY ENGINEERING SERVICES-11/2018 4011.67.993.62015 4011.67.997.62015 CITY ENGINEERING SERVICES-11/2018 4011.68.039.62015 4011.68.044.62015 24 Amount 8,339.00 2,926.00 4,092.00 1,519.00 372.50 4011.68.041 .62015 446.00 4011.68.046.62015 1,500.00 BUILDING & SAFETY PLAN CHECK SERVICES 1011 .51 .501.62015 9,263.00 BUILDING & SAFETY PLAN CHECK SERVICES 1011.51.501.62015 6,630.25 LILITA STREET EVE AVE STORM DRAINAGE 4011.68.052.62015 Total: REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33205 NPDES ANNUAL REPORT 1011.45.457.64399 DAILY GENERATION STUDY 1011.45.457.64399 Total: Total: HELICOPTER SERVICES-12/2018 1011.40.215.64399 HELICOPTER SERVICES-11/2018 4,068.60 84,900.70 232.00 232.00 587.50 515.00 1,102.50 3,614.59 1011.40.215.64399 2,034.06 GENERAL LAW ENFORCEMENT SERVICES-1/2019 1011.40.215.62015 920,439.97 GENERAL LAW ENFORCEMENT SERVICES-1/2019 1011.40.215.62015 17,931.02 Page: 24 City Council Regular Meeting - Page 39 of 268 vchlist 02/28/2019 10:37:02AM Bank code: Voucher 194163 194164 194165 194166 194167 194168 apbank Date Vendor 3/5/2019 003331 003331 L.A. COUNTY SHERIFF DEPT. 3/5/2019 000866 LEAD TECH ENVIRONMENTAL 3/5/2019 001612 LEAGUE OF CALIFORNIA CITIES 3/5/2019 011913 LEON, GAYTAN VIRDIANA 3/5/2019 002861 MAGIC JUMP RENTALS.INC. 3/5/2019 011900 MC CULLOUGH, LEON ANTHONY Check List City of Lynwood Invoice (Continued) 12268 189347 233128862 242228 355124789 194169 3/5/2019 010415 MEDICAL CENTER, ANIMAL EMERGENCY 010415013119 194170 3/5/2019 011888 MENDOZA, ROBERTO QWVE397K 194171 3/5/2019 011505 MORA, LEONARDO 399124010 194172 3/5/2019 011907 MORALES, EMILIO 94381 PO# 11-001196 08-004027 11-001296 Page: 25 Description/Account Amount Total: 944,019.64 LEAD/ASBESTOS TESTING FOR REHAB PROGRAM 2961 .51 .865.62015 MEMBERSHIP DUES 1011.25.205.65040 Total: Total: REFUND-PARKING CITATION TICKET 1011.51.34110 2019 EASTER PROGRAM 1052.60.701 .64020 Total: Total: REFUND-PARKING CITATION TICKET 1011.51 .34105 Total: VETERINARY CARE SERVICES-1/2019 1011.51.445.62015 Total: REFUND-BATEMAN HALL RENTAL DEPOSIT 1011 .60.33215 Total: REFUND-PARKING CITATION TICKET 590.00 590.00 20,654.00 20,654.00 124.00 124.00 1,902.60 1,902.60 90.83 90.83 1,900.03 1,900.03 120.00 120.00 1011.51.34110 68.78 Total : 68.78 REFUND-PARKING CITATION TICKET 1011.51.34110 Total: 124.00 124.00 Page: 25 City Council Regular Meeting - Page 40 of 268 - vchlist Check List Page: 26 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194173 3/5/2019 010272 MOSQUEDA, BEATRIZ 010272013119 VIDA SANA INSTRUCTOR-11/2018-1/2019 08-003835 1011.60.715.62015 47.96 Total: 47.96 194174 3/5/2019 008782 MSJ DEVELOPMENT 91061151 LOCKSMITH SERVICES 06-007746 1011.45.415.63025 1,382.05 Total: 1,382.05 194175 3/5/2019 007207 MUNI TEMPS 129123 STAFFING SERVICE 08-004036 1011.60.701.64399 2,712.50 129124 STAFFING SERVICE 02-002196 1011.30.270.62015 1,190.00 Total: 3,902.50 194176 3/5/2019 011906 MURATALLA, ISABEL MELISSA 399124235 REFUND-PARKING CITATION TICKET 1011.51.34110 124.00 Total: 124.00 194177 3/5/2019 004170 MVTRANSPORTATION, INC 97018 TROLLEY SERVICES-11 /2018 06-007551 2401.45.435.62015 60,150.13 97874 TROLLEY SERVICES-12/2018 06-007551 2401.45.435.62015 59,848.78 98215 TROLLEY SERVICES-1/2019 06-007551 2401.45.435.62015 62,949.13 Total: 182,948.04 194178 3/5/2019 003304 NATIONAL PLANT SERVICES, INC. 14526 CCTV INSPECTION FOR SEWER LINE CITY WIDE 06-007607 4011.68.041.64399 2,000.00 Total: 2,000.00 194179 3/5/2019 000475 NATIONWIDE ENVIRONMENTAL SVCS. 29810 STREET SWEEPING SERVICES -1/2019 11-001261 3381.51.750.62015 2,612.68 29810-1 STREET SWEEPING SERVICES-1/2019 06-007553 2851.45.410.62015 42,196.03 29879 SIDEWALK CLEANING SERVICES-2/2019 06-007555 1011.45.457.62015 1,961.57 29879-1 SIDEWALK CLEANING SERVICES-2/2019 Page: 26 City Council Regular Meeting - Page 41 of 268 vchlist Check List 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice 194179 3/5/2019 000475 NATIONWIDE ENVIRONMENTAL SVCS. (Continued) 194180 3/5/2019 000078 OFFICE DEPOT 270889343001 270889806001 194181 3/5/2019 009059 OMNI APPRAISAL SERVICES OA190211 OA190212 194182 3/5/2019 011905 PALMA, CARLOS 355124073 194183 3/5/2019 011725 PAVEMENT COATINGS CO. PCI000000233 194184 3/5/2019 011878 PEREZ, ALEXANDER 255129263 194185 3/5/2019 010945 PETDATA, INC. 7401 194186 3/5/2019 004854 PETTY CASH-FINANCE 004854-022519 PO# -- 11-001263 08-003924 08-003924 11-001193 11-001193 06-007663 06-007663 11-001168 Page: 27 Description/Account Amount 3381.51.750.62015 490.39 Total: 47,260.67 TONER FOR BATEMAN HALL 1011.60.740.65020 152.13 TONER FOR BATEMAN HALL 1011.60.740.65020 418.93 Total: 571.06 APPRAISAL SERVICES FOR REHAB PROGRAM 2961.51.865.62015 275.00 APPRAISAL SERVICES FOR REHAB PROGRAM 2961.51.865.62015 275.00 Total: REFUND-PARKING CITATION TICKET 1011.51.34110 Total: CITYWIDE SLURRY COATING PROJECT 4011.68.047.62015 4011.20601 Total: REFUND-PARKING CITATION TICKET 1011.51.34110 ANIMAL LICENSE SERVICES 1011 .51.445.62015 Total: Total: 550.00 100.22 100.22 46,182.26 -4,618.23 41,564.03 123.22 123.22 500.00 500.00 REPLENISH PETTY CASH A/C-2/12/2019-2/25/2019 1011.60.720.65020 1011.51 .515.64399 1011 .35.335.67950 Page: 63.99 21.99 2.75 27 City Council Regular Meeting - Page 42 of 268 vchlist 02/28/2019 10:37:02AM Bank code: Voucher 194186 194187 194188 194189 194190 194191 194192 apbank Date Vendor 3/5/2019 004854 004854 PETTY CASH-FINANCE 3/5/2019 008664 PINS ADVANTAGE 3/5/2019 000167 PRESS TELEGRAM 3/5/2019 000154 PRINTCO DIRECT 3/5/2019 001313 QUINONEZ, MARIA 3/5/2019 011911 RAMIREZ, JAVIER 3/5/2019 011882 RIVERA, AGUSTIN DONATE Check List City of Lynwood Invoice 1209 11214227 81159 81488 (Continued) 001313013119 001313022819 001313023018 001313033119 001313123118 92954 233128051 PO# ------- 05-001583 06-007757 06-007483 06-007747 Page: 28 Description/Account Amount Total : ON-LINE CERTIFICATE OF INSURANCE 1011 .35.330.62015 Total: 88.73 125.00 125.00 WELL 11 TRICHLOROETHYLENE ADVERTISEMENT 6051.45.450.62025 PRINTING SERVICES 2051.45.410.62025 PRINTING SERVICES 1011.45.405.62025 Total: Total: ELECTRONIC/MEDIA-AUTO EXPENSES-1/2019 1011 .15.105.60030 1011 .15.105.60025 ELECTRONIC/MEDIA-AUTO EXPENSES-2/2019 886.65 886.65 55.13 343.98 399.11 250.00 250.00 1011.15.105.60030 250.00 1011.15.105.60025 250.00 ELECTRONIC/MEDIA-AUTO EXPENSES-11 /2018 1011.15.105.60030 250.00 1011.15.105.60025 250.00 ELECTRONIC/MEDIA-AUTO EXPENSES-3/2019 1011 .15.105.60030 250.00 1011 .15.105.60025 250.00 ELECTRONIC/MEDIA-AUTO EXPENSES-12/2018 1011.15.105.60030 1011.15.105.60025 Total: REFUND-PARKING CITATION TICKET 1011.51.34150 Total: REFUND-PARKING CITATION TICKET 250.00 250.00 2,500.00 119.00 119.00 Page: 28 City Council Regular Meeting - Page 43 of 268 vchlist Check List Page: 29 02/28/2019 10:37:02AM City of Lynwood Bank code : apbank Voucher Date Vendor Invoice PO# Description/Account Amount 194192 3/5/2019 011882 RIVERA, AGUSTIN DONATE (Continued) 1011.51.34110 124.00 Total: 124.00 194193 3/5/2019 011909 RODRIGUEZ, EVA TORRES 355126568 REFUND-PARKING CITATION TICKET 1011.51.34110 63.53 Total: 63.53 194194 3/5/2019 011917 RODRIGUEZ, LUIS ANTONI 233129464 REFUND-PARKING CITATION TICKET 1011.51.34110 78.37 Total: 78.37 194195 3/5/2019 011042 ROMERO, RAUL PYG07YTO REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 100.00 Total: 100.00 194196 3/5/2019 011899 RUIZ, PEDRO 233124767 REFUND-PARKING CITATION TICKET 1011.51.34110 110.17 Total: 110.17 194197 3/5/2019 000075 S & J SUPPLY CO. S100128320.001 MATERIALS & SUPPLIES NEED FOR REPAIRS 06-007712 6051.45.450.65020 1,001.51 Total: 1,001.51 194198 3/5/2019 008745 SAN FRANCISCO LAUNDRY 43869 LAUNDRY SERVICE 08-003820 1011.60.740.64399 118.18 44012 LAUNDRY SERVICE 08-003820 1011.60.740.64399 50.00 Total: 168.18 194199 3/5/2019 011915 SANCEZ, FRANCISCO 233130673 REFUND-PARKING CITATION TICKET 1011.51.34110 68.78 Total: 68.78 194200 3/5/2019 007205 SANCHEZ AWARDS 1481 NAME PLATES FOR PLANNING 11-001292 1011.51.505.64399 72.77 1485 CITY COUNCIL NAME PLATES 08-004030 1011.60. 7 40.62025 26.46 Page: 29 City Council Regular Meeting - Page 44 of 268 vchlist Check List 02/28/2019 10:37:02AM City of Lynwood Bank code: apbank Voucher Date Vendor Invoice 194200 3/5/2019 007205 007205 SANCHEZ AWARDS (Continued) 194201 3/5/2019 008802 SANTANA, MARISELA 008802020319 008802033119 194202 3/5/2019 011892 SANTOS, BERNER UW41HSWN 194203 3/5/2019 010635 SECURITY OF LOS ANGELES, INC 297198 194204 3/5/2019 008668 SOLACHE, JOSE LUIS 008668033119 194205 3/5/2019 008956 SPCALA 2019-0131 194206 3/5/2019 000089 STAPLES OFFICE WAREHOUSE 3404648913 194207 3/5/2019 011394 SULLY-MILLER CONTRACTING CO. 1406748 1406749 1R2 PO# ------ 12-000255 12-000255 11-001144 02-002194 02-002194 06-007565 06-007566 06-007713 Page: 30 Description/Account Amount Total : 99.23 REIMB-MILEAGE EXPENSE 1011.10.101.64015 115.54 ELECTRONIC/MEDIA-AUTO EXPENSES-3/2019 1011.10.101.60025 250.00 1011.10.101.60030 250.00 Total : 615.54 REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 Total: 100.00 100.00 IP SECURITY CAMERAS AT MULTIPLE CITY FACILITIES 4011.67.057.62015 4011.67.057.66015 Total: 21,231.02 17,964.71 39,195.73 ELECTRONIC/MEDIA-AUTO EXPENSES-3/2019 1011.10.101.60025 250.00 250.00 500.00 1011.10.101.60030 Total: ANIMAL SHELTER SERVICES-1/2019 1011.51.445.62015 OFFICE SUPPLIES 6051.30.315.65020 1052.30.315.65020 Total: Total : CONSTRUCTION SERVICES-RETENTION 16,250.00 16,250.00 139.85 38.34 178.19 4011.20601 81,973.01 CONSTRUCTION SERVICES-RETENTION 4011.20601 94,606.22 STREET IMPROVEMENT /LOUISE AVENUE 4011.67 .912.62015 214,035.85 Page: 30 City Council Regular Meeting - Page 45 of 268 vchlist 02/28/2019 10:37:02AM Bank code: apbank Voucher Date Vendor 194207 3/5/2019 011394 SULLY-MILLER CONTRACTING CO. 194208 3/5/2019 002938 TAJ OFFICE SUPPLY 194209 3/5/2019 000007 TAYLOR, WOODROW 194210 3/5/2019 001211 THE BANK OF NEW YORK MELLON 194211 3/5/2019 011221 THE KILKENNY GROUP Check List City of Lynwood Invoice (Continued) 0040223-001 0040246-001 0040247-001 0040346-001 19-2003 252-2172847 11 PO# 06-007713 06-007713 06-007713 02-002250 10-000182 11-001299 01-001381 11-001146 02-002251 01-001364 01-001364. 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 Page: 31 Description/Account Amount 4011.68.042.62015 190,488.30 4011.68.041.62015 2,707.50 4011.20601 -20,361.58 Total: 563,449.30 1099 MISC SUPPLIES 1011.30.310.65020 217.95 OFFICE SUPPLIES 1011.20.110.65015 36.80 OFFICE SUPPLIES 1011.51.605.65015 324.42 OPERATING SUPPLIES 1011.10.101.65020 66.14 Total: 645.31 ADMINISTRATIVE HEARING EXAMINER 1011.51.515.62015 900.00 Total: 900.00 LUA REVENUE BONDS 2014 SERIES 6051.45.450.67899 1,000.00 Total: 1,000.00 COMMUNICATION CONSULTING SERVICES-11/2018 1011.10.101.62015 2,550.00 1011.15.105.62015 2,550.00 1011.20.110.62015 2,550.00 1011.25.205.62015 2,550.00 1011.30.275.62015 2,550.00 1011.35.330.62015 2,550.00 1011.45.401.62015 1,275.00 6051.45.450.62015 1,275.00 1011.51.501.62015 2,550.00 1011.60. 701.62015 2,550.00 1011.65.290.62015 1,275.00 6051.65.290.62015 1,275.00 Page: 31 City Council Regular Meeting - Page 46 of 268 vchlist 02/28/2019 10:37:02AM Bank code: apbank Voucher Date Vendor 194211 3/5/2019 011221 THE KILKENNY GROUP 194212 3/5/2019 004179 TIERRA WEST ADVISORS, LLC 194213 3/5/2019 011897 TOSTADO, YASMIN Check List City of Lynwood Invoice (Continued) 12 13 119 5AKHAYX9 PO# 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 01-001364 11-001255 Page: 32 Description/Account Amount COMMUNICATION CONSULTING SERVICES-12/2018 1011.10.101.62015 525.00 1011.15.105.62015 525.00 1011.20.110.62015 525.00 1011.25.205.62015 525.00 1011.30.275.62015 525.00 1011.35.330.62015 525.00 1011.45.401.62015 262.50 6051.45.450.62015 262.50 1011.51.501.62015 525.00 1011.60. 701.62015 525.00 1011.65.290.62015 262.50 6051.65.290.62015 262.50 COMMUNICATION CONSULTING SERVICES-1/2019 1011.10.101.62015 1,050.00 1011.15.105.62015 1,050.00 1011.20.110.62015 1,050.00 1011.25.205.62015 1,050.00 1011.30.275.62015 1,050.00 1011.35.330.62015 1,050.00 1011.45.401.62015 525.00 6051.45.450.62015 1011.51.501.62015 1011.60. 701.62015 1011.65.290.62015 6051.65.290.62015 Total: 525.00 1,050.00 1,050.00 525.00 525.00 41,250.00 SPECIAL PROJECT PLANNING SUPPORT SERVICE 1011.51.505.62015 Total: 6,895.00 6,895.00 REFUND-BATEMAN HALL RENTAL DEPOSIT 1011.60.33215 250.00 Total: 250.00 Page: 32 City Council Regular Meeting - Page 47 of 268 vchlist 02/28/2019 10:37:02AM Bank code : apbank Voucher Date Vendor 194214 3/5/2019 011884 TRANSPORT ASSIST 194215 3/5/2019 001589 TREJO, JOSE 194216 3/5/2019 000190 TROY GROUP, INC. 194217 3/5/2019 011910 UDOH, NNAEMEKA 194218 3/5/2019 007742 ULINE, INC. 194219 3/5/2019 000207 WALMART 194220 3/5/2019 011452 WATER SYSTEMS CONSULTING, INC. 194221 3/5/2019 002912 WATERLINE TECHNOLOGIES,INC Check List City of Lynwood Invoice 411125099 001589032219 0404092-1 366124210 105495050 000207021919 3624 5442874 5443443 5443444 5443445 5444132 PO# 02-002253 06-007496 08-004032 06-007359 06-007426 06-007426 06-007426 06-007426 06-007426 Page: 33 Description/Account Amount REFUND-PARKING CITATION TICKET 1011.51.34110 55.00 Total: 55.00 PER DIEM 1011.60. 701.64015 195.00 Total: 195.00 SECURE-TONER FOR A/P CHECKS 1011.30.270.65020 575.32 Total: 575.32 REFUND-PARKING CITATION TICKET 1011.51.34150 63.53 Total: 63.53 JANITORIAL SUPPLIES 2051.45.410.65020 97.96 Total : 97.96 2019 EASTER PROGRAM 1052.60.701.64020 1,873.68 Total : 1,873.68 PREPARE A FEASIBILITY STUDY FOR CONSTRUCTION 4011.67 .056.62015 OPERATING SUPPLIES 6051.45.450.65020 OPERATING SUPPLIES 6051.45.450.65020 OPERATING SUPPLIES 6051.45.450.65020 OPERATING SUPPLIES Total: 14,340.00 14,340.00 172.06 472.31 310.38 6051.45.450.65020 185.55 OPERATING SUPPLIES 6051.45.450.65020 479.06 Page: 33 City Council Regular Meeting - Page 48 of 268 vchlist 02/28/2019 10:37:02AM Bank code: apbank Voucher Date Vendor Check List City of Lynwood Invoice 194221 194222 3/5/2019 002912 002912 WATERLINE TECHNOLOGIES,INC (Continued) 3/5/2019 009100 WATERWORKS TECHNOLOGY,INC. 194223 3/5/2019 001522 WECK LABORATORIES, INC. 6392 6427 6433 6433-1 6435 6436 6439 6440 6441 6444 6447 6448 W9B0444-colynwood PO# -------- 06-007754 06-007725 06-007725 06-007513 06-007513 06-007764 06-007764 06-007753 06-007752 06-007764 06-007764 06-007764 06-007764 06-007764 06-007764 06-007764 06-007764 06-007764 06-007764 06-007723 Page: 34 Description/Account Amount Total : 1,619.36 DUNCAN WATERLINE DESIGN 4011.67.907.62015 768.00 MANAGEMENT OF WATER AND SEWER DIVISION 6051.45.450.62015 6401.45.460.62015 WATER SUPERVISION 6051.45.450.62015 6401.45.460.62015 5,372.50 2,302.50 1,074.50 460.50 MANAGEMENT OF WATER AND SEWER SERVICES 6051.45.450.62015 4,298.00 6401.45.460.62015 1,842.00 LOUISE WATERLINE DRAWINGS 4011.68.042.62015 2,112.00 LESAGE STREET WATERLINE DRAWINGS 4011.68.042.62015 1,728.00 MANAGEMENT OF WATER AND SEWER SERVICES 6051.45.450.62015 5,396.79 6401.45.460.62015 2,312.91 MANAGEMENT OF WATER AND SEWER SERVICES 6051.45.450.62015 5,396.79 6401.45.460.62015 2,312.91 MANAGEMENT OF WATER AND SEWER SERVICES 6051.45.450.62015 5,396.79 6401.45.460.62015 2,312.91 MANAGEMENT OF WATER AND SEWER SERVICES 6051.45.450.62015 5,396.79 6401.45.460.62015 2,312.91 MANAGEMENT OF WATER AND SEWER SERVICES 6051.45.450.62015 5,396.79 6401.45.460.62015 2,312.91 WATERLINE IMPROVEMENT (DESIGN PHASE) 4011.68.042.62015 1,152.00 Total: 59,658.50 ANALYZE WATER SAMPLES AND BACTERIA Page: 34 City Council Regular Meeting - Page 49 of 268 vchlist 02/28/2019 10:37:02AM Bank code: apbank Voucher Date Vendor 194223 3/5/2019 001522 WECK LABORATORIES, INC. 194224 3/5/2019 011908 WICKRAMASINGHE, MILEKKO 194225 3/5/2019 000057 WILLDAN ENGINEERING 194226 3/5/2019 007609 WILLDAN FINANCIAL SERVICES 133 Vouchers for bank code: 133 Vouchers in this report apbank Check List City of Lynwood Invoice (Continued) 233128987 00712739 010-40328 010-40444 PO# ------- 06-007501 11-001293 02-002254 02-002254 Page: 35 Description/Account Amount 6051.45.450.64399 Total: REFUND-PARKING CITATION TICKET 1011.51 .34110 Total: ASSOCIATE PLANNER SERVICES 1011.51 .505.62015 Total: REPORT PREPARATION SERVICES 1011.30.275.62015 REPORT PREPARATION SERVICES 1011.30.275.62015 Total: Bank total : Total vouchers : 210.00 210.00 124.00 124.00 7,680.00 7,680.00 1,100.00 3,800.00 4,900.00 3,429,530.88 3,429,530.88 Page: 35 City Council Regular Meeting - Page 50 of 268 Agenda Item # 11. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: Maria Quinonez, City Clerk Eduardo Sarmiento, Assistant to the City Clerk Nancy Albitre, Interim Deputy Clerk SUBJECT: MINUTES FROM PREVIOUS MEETINGS Recommendation: Staff recommends that the City Council to approve the following minutes: Special Closed Session November 6, 2018 Special Closed Session November 20, 2018 Background: N/A Discussion and Analysis: N/A Fiscal Impact: N/A Coordinated With: N/A City Council Regular Meeting - Page 51 of 268 ATTACHMENTS: Description Special Closed Session November 6, 2018 Special Closed Session November 20, 2018 City Council Regular Meeting - Page 52 of 268 CITY COUNCIL SPECIAL MEETING CLOSED SESSION MEETING MINUTES November 6, 2018 01. CALL TO ORDER The City Council Special Meeting Closed Session of the City of Lynwood met in the Council Chambers, 11350 Bullis Road, Lynwood, CA 90262 Mayor Solache presiding. 02. CERTIFICATION OF AGENDA POSTING BY CITY CLERK City Clerk Quinonez announced the Agenda had been duly posted in accordance with the Brown Act. 03. ROLL CALL OF COUNCIL MEMBERS PRESENT: COUNCIL MEMBERS ALATORRE, CASTRO AND MAYOR SOLACHE ABSENT: COUNCIL MEMBER HERNANDEZ AND MAYOR PRO TEM SANTILLAN-BEAS STAFF PRESENT: City Manager Ometeotl, City Attorney Leal, City Clerk Quinonez, Community Development Director Ramirez, Human Resources Director Stafford, Public Works Director Mendez, Recreation Director Flores and Technology Director Han. ABSENT: CITY TREASURER 04. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was postponed to the regular meeting at 6:00 p.m. 05. INVOCATION The invocation was postponed to the regular meeting at 6:00 p.m. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE NON-AGENDA PUBLIC ORAL COMMUNICATIONS Closed Session NONE The City Attorney led the City Council into closed session. City Council Regular Meeting - Page 53 of 268 MOTION: It was moved by Council Member Castro, seconded by Council Member Alatorre to recess to closed session. Motion carried by unanimous vote. ROLL CALL: AYES: COUNCIL MEMBERS CASTRO, ALATORRE, MAYOR PRO TEM SANTILLAN-BEAS AND MAYOR SOLACHE NOES: NONE ABSTAIN: NONE ABSENT: COUNCIL MEMBER HERNANDEZ The City Council reconvened into open session at 6:00 p.m. 06. A. With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.9: CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: Number of Cases: Four (4) B. With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.8: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - Government Code section 54956.9(d)(1) 1. Name of Case: Ochoa v. Hernandez, City of Lynwood, Case No. BC721497 2. Name of Case: Gladys Romero v. City of Lynwood, Case No. BC652913 3. Name of Case: A.G. Johnson v. City of Lynwood, Case No. BS175033 C. With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 3630 E. Imperial Hwy, Lynwood, CA 90262C. 3628 E. Imperial Hwy, Lynwood, CA 90262 5957 Atlantic Ave, Maywood, CA 90270 2700 E. Slauson Ave, Huntington Park, CA 90255 Assessor Parcel Numbers: 6173-021-008, 6173-021-006, 6313-013-026 6320-006-069 City Negotiator: City Manager Jose E. Ometeotl and City Attorney Francisco Leal Involved Party: Verity Health System of California, Inc. and SFMC Group Under Negotiation: Price and Terms City Council Regular Meeting - Page 54 of 268 D. With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.75: 1. California State Audit Report With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.9: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - Government Code section 54956.9(d)(1) 1. Name of Case: Hernandez v. City of Lynwood, Case No. 18STCV03143 There was no reportable action. ADJOURNMENT Having no further discussion, it was moved by Council Member Santillan-Beas, seconded by Council Member Castro to adjourn close session at 6:18 p.m. Motion carried by unanimous consent. AYES: COUNCIL MEMBERS ALATORRE, CASTRO, MAYOR PRO TEM SANTILLAN-BEAS AND MAYOR SOLACHE NOES: NONE ABSTAIN: NONE ABSENT: COUNCIL MEMBER HERNANDEZ ________________________ ________________________ Maria Quinonez, City Clerk Jose Luis Solache, Mayor City Council Regular Meeting - Page 55 of 268 CITY OF LYNWOOD CITY COUNCIL SPEICAL CLOSED SESSION MEETING MINUTES November 20, 2018 01. CALL TO ORDER The City Council of the City of Lynwood met in a special meeting in the Council Chambers, 11350 Bullis Road, Lynwood, CA on the above date at 5:00 p.m. Mayor Solache presiding. 02. CERTIFICATION OF AGENDA POSTING BY CITY CLERK City Clerk Quinonez announced the agenda had been duly posted in accordance with the Brown Act. 03. ROLL CALL OF COUNCIL MEMBERS PRESENT: COUNCIL MEMBERS, ALATORRE, CASTRO, MAYOR PRO TEM SANTILLAN-BEAS AND MAYOR SOLACHE ABSENT: COUNCIL MEMBERS HERNANDEZ STAFF PRESENT: City Manager Ometeolt, City Attorney Leal, City Treasurer Camacho and City Clerk Quinonez STAFF ABSENT: NONE 04. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was postponed to the regular meeting at 6:00 p.m. 05. INVOCATION The invocation was postponed to the regular meeting at 6:00 p.m. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE NON-AGENDA PUBLIC ORAL COMMUNICATIONS NONE CLOSED SESSION City Council Regular Meeting - Page 56 of 268 City Attorney Leal led the City Council into closed session. MOTION: It was moved by Council Member Castro, seconded by Mayor Pro Tem Santillan-Beas to recess to closed session at 5:02pm. Motion carried by unanimous consent. AYES: COUNCIL MEMBERS ALATORRE, CASTRO, MAYOR PRO TEM SANTILLAN-BEAS AND MAYOR SOLACHE NOES: NONE ABSTAIN: NONE ABSENT: COUNCIL MEMBER HERNANDEZ The City Council reconvened into open session at 6:00 p.m. 06. Closed Session Items City Attorney Leal reported on the following items: With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.9: CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Number of Cases: Two (2) A. With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.8: CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 3630 E. Imperial Hwy, Lynwood, CA 90262 3628 E. Imperial Hwy, Lynwood, CA 90262 5957 Atlantic Ave, Maywood, CA 90270 2700 E. Slauson Ave, Huntington Park, CA 90255 2131 West 3rd Street, Los Angeles, CA 90057 Assessor Parcel Numbers: 6173-021-008, 6173-021-006, 6313-013-026 6320-006-069, 5154-018-018 City Negotiator: City Manager Jose E. Ometeotl and City Attorney Francisco Leal Involved Party: Verity Health System of California, Inc. and SFMC Group Under Negotiation: Price and Terms City Negotiator: Jose E. Ometeotl provided a status update regarding property in question. B. With respect to every item of business to be discussed in closed session pursuant to Government Code Section 54956.9: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - Government Code section 54956.9(d)(1) 1. Name of Case: Hernandez v. City of Lynwood, Case No. 18STCV03143 City Council Regular Meeting - Page 57 of 268 ACTION: Council tendered the matter item B to ICRMA ADJOURNMENT Having no further discussion, it was moved by Mayor Pro Tem, seconded by Council Member Casto to adjourn the regular Lynwood City Council meeting at 6:00 p.m. Motion carried by unanimous consent. AYES: COUNCIL MEMBERS ALATORRE, CASTRO, MAYOR PRO TEM SANTILLAN-BEAS AND MAYOR SOLACHE NOES: NONE ABSTAIN: NONE ABSENT: COUNCIL MEMBER HERNANDEZ __________________________ __________________________ José Luis Solache, Mayor Maria Quinonez, City Clerk City Council Regular Meeting - Page 58 of 268 Agenda Item # 12. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose Ometeotl, City Manager PREPARED BY: Gabriela Camacho, City Treasurer Sheila Harding, Deputy City Treasurer SUBJECT: TREASURER'S MONTHLY INVESTMENT REPORT Recommendation: It is recommended that the City of Lynwood receive and file the attached Monthly Investment Report. The following information is provided to ensure the City Council is informed of the investment activities for the month ending January 31, 2019 Background: Government Code Section 53607, last amended 1996, with reference to the reporting of investment transactions states that the Treasurer shall make a monthly report of those transaction to the legislative body. Government Code Section 53646 (b) (1), last amended 2004, with reference to discussion related to establishment of an Investment Policy and investment reporting states that “the Treasurer may render a quarterly report”. To determine the applicable code inasmuch as reference to Government Code Section 53607 or non-compliance thereof has never been included in past audit findings. While Government Code Section 53646 (b) (1) which is the most current version related to Investment Reporting utilizes the word “may” indicating the reporting mechanism is optional, to err on the side of caution, and in order to ensure that we are in compliance with all Government Codes, a new procedure of submitting monthly reports to the Council/Agency agenda was implemented. Attached for Council/Agency review is the City’s/Agency’s Monthly Treasurer’s Report. Subsequent reports will be provided on a monthly basis at the second meeting of each month. Discussion and Analysis: The investment transactions were executed in accordance with the California State Government Code and the City’s Investment Policy. The City Treasurer believes the General Fund contains sufficient cash flow to meet the next six months of expenditures. City Council Regular Meeting - Page 59 of 268 Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City Coordinated With: FTN Financial Main Street Advisors currently monitors the City’s investment activities. ATTACHMENTS: Description January - Monthly Summary Report FTN - January 2019 Monthly Report City Council Regular Meeting - Page 60 of 268 City of Lynwood Investment Report Summary Notes For the Month of January, 2019 The Investment activity for January 2019 – 0 Purchase(s); 0 Redemptions. Purchaser/Issuer Rating Par Value Term Stated Rate Structure None N/A Redemption/Issuer Maturity Rating Par Value Interest Earned Stated Rate Days/ Maturity Structure None As of January 15, 2019, the City’s Local Agency Investment Fund (LAIF) account was credited $54,316.70 for the interest earned on the City’s deposits for the quarter ending December 31, 2018. The City is within the desired average range of $9-$15 million in liquid assets. Liquidity of the Portfolio • The current goal is to keep the investment portfolio at an average maturity of 2 years based on current economic conditions. The portfolio’s current average maturity is 231 days. • The goal is to keep an average of $9 - $15 million in liquid assets in order to meet operational needs and for unexpected expenditures that may arise. The City complies with California Government Code Section 53646, which requires local agency to report its ability to meet pooled expenditure requirements for the next six (6) months. • The City’s portfolio will stay the course based on the current economic trends. Covering cash flow needs ranked as the top priority. Portfolio Performance: Portfolio Interest Earning Summary August, 2018 Fiscal YTD CD/Coupon/Discount Investments: Interest Collected 13,319.65 110,666.40 Plus Accrued Interest @ End of Period 52,304.87 52,260.32 Less Accrued Interest @ Beginning of Period ( 47,047.87) ( 43,191.48) Less Accrued Interest @ Purchase During Period 0.00 0.00 Interest Earned during this Period 18,576.65 119,735.24 Adjusted by Premiums and Discounts 1,491.83 12,853.78 Adjusted by Capital Gains or Losses 0.00 0.00 Earned during this Period 20,068.48 132,589.02 Pass Through Securities Interest Collected 0.00 0.00 Plus Accrued Interest @ End of Period 0.00 0.00 Less Accrued Interest @ Beginning of Period (0.00) (0.00) Less Accrued Interest at Purchase During Period (0.00) (0.00) Interest Earned during this Period 0.00 0.00 City Council Regular Meeting - Page 61 of 268 Investment Report January 2018 Page Two Adjusted by Premiums Sep-18and Discounts 0.00 0.00 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 54,822.98 174,410.34 Plus Accrued Interest at End of Period 45,669.56 45,669.56 Less Interest at Beginning of Period ( 80,521.99) ( 79,855.38) Interest Earned this Period 19,970.55 140,224.52 Total Interest Earned 38,547.20 259,959.76 Total Adjustments from Premium and Discounts 1,491.83 12,853.78 Total Capital Gains or Loss 0.00 0.00 Total Earnings this Period 40,039.03 272,813.54 Notes: Adjusted by Premium/Discounts represents the premium or discount cost involved to secure higher or lower yield securities. The cost of the premium or discount is amortized down or up respectively to par over the life of the bond until reaching maturity. By amortizing, the amount of taxable interest is reduced for each year the city owns the bond. This is because the amortized premiums or discounts offset the ordinary income of the coupon payment. As long as a bond is held to maturity, there will be no capital loss or gain to report. Month End & Year # of Securities Interest Average Balance YTM 360% YTM 365 Effective Rate of Return Days to Maturity Jul-18 39 40,545.91 22,950,574.99 1.962 1.989 2.08% 348 Aug-18 39 38,653.18 22,986,221.42 2.010 2.038 1.98% 353 Sept -18 39 37,079.13 21,973,367.97 2.052 2.080 2.05% 359 Oct-18 40 36,049.43 20,209,181.44 2.131 2.161 2.10% 421 Nov-18 39 35,040.23 19,608,804.86 2.195 2.226 2.17% 432 Dec-18 39 36,963.58 19,622,923.59 2.240 2.271 2.22% 434 Jan-19 38 40,039.13 20,838,629.51 2.284 2.116 2.26% 346 City Council Regular Meeting - Page 62 of 268 Portfolio Summary Goldman Sach Govt MMF Nissan Market Value Cisco Book Value Wells Fargo Bank Variance Comenity Capital Bank Goldman Sachs Bank Par Value Merrick Bank Morgan Stanley Bank Net Asset Value Salllie Mae Bank Capital One Bank USA Book Yield State Bank of India Barclays Bank Years to Maturity Key Bank BMW Bank Effective Duration Ally Bank *Book Value is Amortized 2.32% 2.27% 0.95 1.19 1.11 1.16 1.1% 1.1% 1/31/2019 SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY (MOODY'S) City of Lynwood ACCOUNT SUMMARY MONTH-END PORTFOLIO BOOK YIELD TOP ISSUERS Issuer % Portfolio 54.1% 6.3% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1% $99.870 $99.712 1/31/19 12/31/18 $23,676,725 $19,581,223 $23,707,503 $19,637,779 -$30,778 -$56,555 $23,728,962 $19,660,729 2.1% 2.1% 1.6% 1.5% 2.1% Agy 12.0% Tsy 2.1% LAIF 54.1% MMF 0.9% CD-FDIC 15.7% CP 1.6% Corp 13.7%68.1% 8.8%10.5%7.3%5.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0-1Y 1-2Y 2-3Y 3-4Y 4-5Y 54.1% 15.7% 1.6% 0.0% 4.2% 5.2% 1.1% 1.1% 1.1% 16.0% 0%25%50%75% NR-LAIF NR-FDIC CDs P-1 A3 A2 A1 Aa1 Aa2 Aa3 Aaa 1.45% 1.55% 1.65% 1.75% 1.85% 1.95% 2.05% 2.15% 2.25% 2.35% 2.45%Feb-18Mar-18Apr-18May-18Jun-18Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Total Ex LAIF NR: Not RatedPer Book ValuePer Book Value Per Book Value 2City Council Regular Meeting - Page 63 of 268 2-13-19 17City Council Regular Meeting - Page 64 of 268 Investment Activity Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 39 39 39 39 39 40 39 39 40 39 39 38 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 1 1 1 1 1 2 1 1 2 1 1 0 1 1 1 1 1 2 1 1 2 1 1 0 3 7 2 2 4 0 2 2 2 2 2 4 City of Lynwood1/31/2019 Purchases Total Transactions Positions Redemptions 35 36 37 38 39 40 41 42 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19PositionsNumber of Positions at Month End 0 1 2 3 4 5 6 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19Number of TransactionsPurchases and Redemptions* (Excluding LAIF & MMF)Purchases Redemptions *Redemptions include maturities, calls, and sells (excluding paydowns) 16City Council Regular Meeting - Page 65 of 268 Page 1 January 31, 2019 Interest Earnings Summary Month EndingJanuary 31 Fiscal Year To Date Portfolio Management Lynwood - Portfolio Management CD/Coupon/Discount Investments: 13,319.65Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 52,304.87 ( 47,047.87) 110,666.40 52,260.32 ( 43,191.48) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 18,576.65 1,491.83 0.00 119,735.24 12,853.78 0.00 20,068.48 132,589.02 Pass Through Securities: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 ( 0.00) 0.00 0.00 ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash/Checking Accounts: 54,822.98Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 45,669.56 ( 80,521.99) 174,410.34 45,669.56 ( 79,855.38) Interest Earned during Period 19,970.55 140,224.52 Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period 38,547.20 1,491.83 0.00 259,959.76 12,853.78 0.00 40,039.03 272,813.54 Portfolio LYNW APData Updated: SET_PMM: 02/13/2019 10:35 Run Date: 02/13/2019 - 10:36 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.6.1 27City Council Regular Meeting - Page 66 of 268 City of Lynwood Cash Reconciliation Report For the Period January 1, 2019 - January 31, 2019 Par Value Cash Trans. TypeInvestment # Fund Security ID Trans. Date Security Description Maturity Date Interest RedemptionsPurchases 1001101/03/2019 InterestLYN 9000 38,355.32 GSGF 0.0M 0.01%0.00 506.28 0.00 506.28 1001101/03/2019 InterestLYN 9000 38,355.32 GSGF 0.0M 0.01%-506.28 0.00 0.00 -506.28 07/06/20231014401/07/2019 InterestLYN 38148PR33 248,000.00 GOLD 0.2M 3.30% Mat. 07/06/2023 0.00 4,125.63 0.00 4,125.63 1001101/07/2019 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-4,125.63 0.00 0.00 -4,125.63 07/08/20201011601/08/2019 InterestLYN 40434AZ44 248,000.00 HSBC 0.2M 1.40% Mat. 07/08/2020 0.00 1,750.27 0.00 1,750.27 1001101/08/2019 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-1,750.27 0.00 0.00 -1,750.27 01/11/20231013701/11/2019 InterestLYN 61747MF63 248,000.00 MSB 0.2M 2.65% Mat. 01/11/2023 0.00 3,313.01 0.00 3,313.01 1001101/11/2019 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-3,313.01 0.00 0.00 -3,313.01 1000001/15/2019 InterestLYNL 9001 12,155,269.54 LAIF 12.2M 0.57%0.00 54,316.70 0.00 54,316.70 1000001/15/2019 InterestLYNL 9001 12,155,269.54 LAIF 12.2M 0.57%-54,316.70 0.00 0.00 -54,316.70 01/15/20201012501/15/2019 InterestLYN 24422ERY7 250,000.00 DE 0.3M 1.70% Mat. 01/15/2020 0.00 2,125.00 0.00 2,125.00 1001101/15/2019 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-2,125.00 0.00 0.00 -2,125.00 02/21/20231015301/18/2019 InterestLYN 59013J5Z8 248,000.00 MERICK 0.2M 3.35% Mat.0.00 705.61 0.00 705.61 1001101/18/2019 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-705.61 0.00 0.00 -705.61 1000001/23/2019 DepositLYNL 9001 12,155,269.54 LAIF 12.2M 1.90%-4,000,000.00 0.00 0.00 -4,000,000.00 06/29/20231014301/29/2019 InterestLYN 20033AZK5 248,000.00 ADS 0.2M 3.30% Mat. 06/29/2023 0.00 695.08 0.00 695.08 1001101/29/2019 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-695.08 0.00 0.00 -695.08 08/30/20231014701/30/2019 InterestLYN 949763TF3 248,000.00 WFB 0.2M 3.30% Mat. 08/30/2023 0.00 695.08 0.00 695.08 1001101/30/2019 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-695.08 0.00 0.00 -695.08 Subtotal -4,068,232.66 68,232.66 0.00 -4,000,000.00 Total -4,068,232.66 68,232.66 0.00 -4,000,000.00 Portfolio LYNW AP Run Date: 02/13/2019 - 10:48 AC (PRF_AC) 7.2.0 Report Ver. 7.3.6.133City Council Regular Meeting - Page 67 of 268 Agenda Item # 13. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: Shanell Shipe, Assistant to the City Manager SUBJECT: CITY MANAGER'S MONTHLY TASK ORDER REPORT Recommendation: It is recommended that the City Council of the City of Lynwood receive and file the City Manager's Monthly Task Order Report for the month of February 2019. Background: On June 19, 2018 the City Council of the City of Lynwood approved Ordinance No. 1711, "An Ordinance of the City Council of the City of Lynwood Amending Chapter 6, Subsection 6-3 of the Lynwood Municipal Code," which allows for a set spending authority allotted for City Management or his/her authorized designee. 6-3.10 City Manager Authority: The city manager or his/her duly authorized designee shall be authorized to sign on behalf of the city all purchase orders or contracts for procuring supplies, equipment, and routine services that do not include any legal or consulting services, which do not exceed a total contract or purchase order amount of twenty five thousand dollars ($25,000.00) in any one-year period. 6-3.11 Report Of Purchases: a. The city manager shall file a report of purchases with the city council on a monthly basis. The report shall account for all purchases of supplies, equipment or routine services and all contracts for professional services exceeding five thousand dollars ($5,000.00) which were made without prior city council approval during the preceding month. b. The report shall identify the subject matter of the purchase or contract, the requesting department, the person or entity from whom the purchase was made, and the amounts paid or payable by the city or its agencies under each such purchase order or contract. 6-3.16 Master Services Contracts and Task Orders City Council Regular Meeting - Page 68 of 268 Task Orders shall be issued pursuant to a Master Services Contract with a specific scope of work and the Purchasing Officer shall have authority to execute such Task Order for individual projects for one hundred twenty- five thousand dollars ($125,000.00) or less. Any Task Order in an amount exceeding one hundred twenty-five thousand dollars ($125,000.00) shall require City Council's approval. Task Orders shall not be issued for an amount exceeding two hundred thousand dollars ($200,000.00). An individual Request for Qualification process and a new contract awarded by the City Council shall be required for amounts exceeding two hundred thousand dollars ($200,000). The City Manager shall prepare and submit a report detailing all Task Orders authorized by the City Manager to the City Council on a monthly basis. Discussion and Analysis: The noted task orders were approved and executed in accordance with Ordinance No. 1711, amending the City's Municipal Code. Fiscal Impact: Fiscal impact for each project is noted on attached task order report. Coordinated With: Finance Department ATTACHMENTS: Description Task Order Report Feb 2019 City Council Regular Meeting - Page 69 of 268 Subject MatterRequesting DepartmentRequesting Person/EntityAmountProposal for On-Call Energy Manager Support ServicesPublic WorksWilldan$25,000.00Development of a Hazard Mitigation RFPPublic WorksAvant Garde$4,800.00Proposal to Provide Public Works Operations Manager ServicesPublic WorksWilldan$25,000.00Proposal to Provide Interim Public Works Director ServicesPublic WorksWilldan$25,000.00City Manager's Executed Task Orders February 2019City Council Regular Meeting - Page 70 of 268 Agenda Item # 14. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: William Stracker, Interim Director of Public Works Lorry Hempe, Public Works Special Projects Manager SUBJECT: AWARD OF CONTRACT FOR THE VALUATION OF THE CITY’S WATER AND SEWER SYSTEMS Recommendation: Staff recommends that the City Council adopt the attached resolution entitled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE AWARD OF CONTRACT TO RAFTELIS FOR THE VALUATION OF THE CITY OF LYNWOOD’S WATER AND SEWER SYSTEMS IN AN AMOUNT NOT TO EXCEED $53,888 AND AUTHORIZING THE CITY MANAGER TO APPROVE ADDITIONAL SERVICES UP TO 30 PERCENT OF THE CONTRACT PRICE.” Background: On January 10, 2019, staff issued a Request for Proposals for the valuation of the water and sewer systems. Two proposals were received from: 1) Wildan and 2) Raftelis. Discussion and Analysis: Staff identified a need for a range of valuations for the water and sewer systems based on the income, market and cost approaches. The valuation report will provide the City with a value of its existing assets, tangible and intangible for financial analysis. Both firms, Raftelis and Willdan, have demonstrated experience in conducting evaluations using the methodology that staff requested. Both approaches to the scope of work meet staff requirements. Both firms will assign experienced and qualified personnel on the valuation. Raftelis has completed valuation study for the Appomattox River Water Authority, City of Redlands, and City of Manassas. Raftellis has conducted technical analysis for City of San Diego on the cost of providing groundwater in San Pasqual Groundwater Basin. Raftelis will partner with Stetson Engineers. Stetson Engineers is currently City Council Regular Meeting - Page 71 of 268 working with the City on the Water Master Plan. Raftelis anticipates a 3 ½- month turnaround time with the final presentation to the City Council on the last month. Raftelis proposes to do the valuation study for $53,888. This includes the onsite condition assessment by Stetson Engineers. Willdan has worked with Rainbow Water District, Heritage Hills Water Works Corporation and Heritage Hills Sewer Works, City of Vero Beach Florida, and Village of Glenview. Willdan is also currently working with the City on the update of the Sewer System Master Plan. Willdan anticipates a 6-month turnaround time, with the final presentation to the City Council on the findings on the 6th month. Willdan proposes to do the work for $111,884. This includes condition assessment and certified land appraisal. Based on the review of the proposals and interview, staff recommends that the City Council awards the contract to Raftelis. Raftelis has completed more than 40 utility valuation analyses over the past 15 years. They have provided financial planning, valuation, rate setting and governance support to more than 1,000 utilities nationwide. They will partner with Stetson Engineers, a firm that specializes in planning and water resources. Staff recommends that the City Council authorizes the City Manager the authority to approve up to 30 percent of additional work if needed. Fiscal Impact: Additional appropriation is needed for FY19 as follows: APPROPRIATION Fund Dept Div Object Description Amount Budgetary Transfer Out 6051 Water Fund $52,540.80 Budget Balance $52,540.80 Budgetary Transfer In 6051 45 450 62015 Water Division $52,540.80 APPROPRIATION Fund Dept Div Object Description Amount Budgetary Transfer Out 6401 Sewer Fund $17,513.60 Budget Balance $17,513.60 Budgetary Transfer In 6401 45 460 62015 Sewer Division $17,513.60 Coordinated With: Finance Department City Attorney's Office ATTACHMENTS: Description Resolution Exhibit A Attachment A- Raftelis Proposal Attachment B-Willdan Proposal City Council Regular Meeting - Page 72 of 268 1 RESOLUTION._____________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE AWARD OF CONTRACT TO RAFTELIS FOR THE VALUATION OF THE CITY OF LYNWOOD’S WATER AND SEWER SYSTEMS IN AN AMOUNT NOT TO EXCEED $53,888 AND AUTHORIZING THE CITY MANAGER TO APPROVE ADDITIONAL SERVICES UP TO 30 PERCENT OF THE CONTRACT PRICE WHEREAS, on January 10, 2019, the staff issued a Request for Proposal (RFP) for a valuation of the water and sewer systems; and WHEREAS, staff received proposals from Willdan and Raftelis in response to the RFP; and WHEREAS, after review of the proposals and subsequent interview, Raftelis demonstrated it has the qualification and technical capabilities, a sound approach to the valuation study, understanding of the City’s needs, a well-defined work plan to meet those needs, and reasonable fee proposal. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS: Section 1. That the City Council authorizes the Mayor to execute the contract attached hereto as Exhibit A with Raftelis in a cost not to exceed $53,888 in a form approved by the City Attorney. Section 2. That the City Attorney can consider, but not necessarily accept, the exceptions to the Agreement submitted by Raftelis. Section 3. That the City Council authorizes the City Manager to approve additional services for a price not to exceed 30 percent of the contract price. Section 4. That the City Council approves the following appropriation: APPROPRIATION Fund Dept Div Object Description Amount Budgetary Transfer Out 6051 Water Fund $52,540.80 Budget Balance $52,540.80 Budgetary Transfer In 6051 45 450 62015 Water Division $52,540.80 APPROPRIATION Fund Dept Div Object Description Amount City Council Regular Meeting - Page 73 of 268 2 Budgetary Transfer Out 6401 Sewer Fund $17,513.60 Budget Balance $17,513.60 Budgetary Transfer In 6401 45 460 62015 Sewer Division $17,513.60 Section 5. That this resolution shall take effect immediately upon its adoption. PASSED, APPROVED and ADOPTED this 5th day of March, 2019. ______________________________ José Luis Solache Mayor ATTEST: ___________________________ ______________________________ María Quiñónez Jose Ometeotl City Clerk City Manager APPROVED AS TO FORM: APPROVED AS TO CONTENT: __________________________ ______________________________ Noel Tapia William Stracker City Attorney Interim Director of Public Works City Council Regular Meeting - Page 74 of 268 3 STATE OF CALIFORNIA ) ) COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 5th day of March 2019, and passed by the following votes: AYES: NOES: ABSTAIN: ABSENT: ________________________ Maria Quinonez, City Clerk STATE OF CALIFORNIA ) ) COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. ____________ on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 5th day of March 2019. ________________________ Maria Quinonez, City Clerk City Council Regular Meeting - Page 75 of 268 PROFESSIONAL SERVICES AGREEMENT This agreement (“Agreement”) is made as of February 19, 2019 by and between the City of Lynwood, a municipal corporation ("City") and Raftelis (“Consultant”), a California corporation. City and [Consultant] are sometimes hereinafter individually referred to as a “Party” and collectively referred to as the “Parties.” R E C I T A L S WHEREAS, City desires to utilize the services of Consultant as an independent contractor the scope of work under Exhibit A; and WHEREAS, Consultant represents that it is fully qualified to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees. NOW, THEREFORE, in consideration of performance by the parties of the covenants and conditions herein contained, the parties hereto agree as follows: 1. Company's Services. A. Scope of Services. The nature and scope of the specific services to be performed by Consultant are as described in Exhibit A. B. Time of Performance. Consultant shall complete the specific services according to the schedule of performance as set forth in Exhibit A. 2. Term of Agreement. This Agreement shall commence on the date of the Notice to Proceed as issued by the City (the “Commencement Date”) and shall terminate twelve months from the Notice to Proceed (the “Termination Date”), unless sooner terminated pursuant to the provisions of this Agreement. In the event the Parties do not enter into a new agreement prior to the Termination Date, this Agreement shall continue on a month-to- month basis under the same terms for a period not to exceed six months following the Termination Date. If the Parties execute no new agreement by the end of the six-month period following the Termination Date, this Agreement shall terminate at the end of such three-month period. 3. Compensation. A. City agrees to compensate Consultant for services under this Agreement in compliance with the schedule set forth in Exhibit A. Consultant shall submit proper monthly invoices in the form and manner specified by City. Each invoice shall include a monthly breakdown of all monthly services performed together with the hours spent on each service. Consultant shall maintain appropriate and necessary documentation supporting the monthly invoices detailing the type of service provided. It shall be available for review by the City at City Council Regular Meeting - Page 76 of 268 Page 1 of 39 all reasonable times upon request. B. Total payment to Consultant pursuant to this Agreement shall not exceed Fifty- Three Thousand Eight Hundred Eighty-Eight Dollars ($53,888), inclusive of any request for reimbursement, if any, submitted pursuant to Section C, below. C. If at the request of the City, Consultant is required to incur out of pocket expenses (including but not limited to, out-of-town travel and lodging) which are above and beyond the ordinary expenses associated with performance of this Agreement; Consultant shall be entitled to reimbursement of such expenses. Consultant shall only be reimbursed for those expenses which: (I) appear on Consultant’s monthly invoices; (II) are accompanied by a copy of the City’s written authorization for Consultant to incur such expenses; and (III) receipts documenting such expenses. 4. General Terms and Conditions. The General Terms and Conditions set forth in Exhibit B are incorporated as part of this Agreement. In the event of any inconsistency between the General Terms and Conditions and any other exhibit to this Agreement, the General Terms and Conditions shall control unless it is clear from the context that both parties intend the provisions of the other exhibit(s) to control. 5. Addresses. City of Lynwood City of Lynwood 11330 Bullis Road Lynwood, CA 90262 Attn: [Name], Director of Public Works Company Raftelis 445 S. Figueroa Street, Suite 2270 Los Angeles, CA 90071 Attention: John M. Mastracchio 6. Exhibits. All exhibits referred to in this Agreement are listed here and are incorporated and made part of this Agreement by this reference. Exhibit A – Scope of Services, Compensation and Time of Performance (Three (3) pages) Exhibit B – General Terms and Conditions (nine (9) pages) SIGNATURES ON FOLLOWING PAGE City Council Regular Meeting - Page 77 of 268 Page 2 of 39 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written below. CITY CITY OF LYNWOOD By: ______________________________ ______________________ José Luis Solache, Mayor Date By: ______________________________ ______________________ Jose Ometeotl, City Manager Date COMPANY RAFTELIS By: _______________________________ ________________________ Consultant Date ATTEST: By: ______________________________ ________________________ Maria Quinonez, City Clerk Date APPROVED AS TO FORM: By: ______________________________ ________________________ Noel Tapia, City Attorney Date City Council Regular Meeting - Page 78 of 268 Page 3 of 39 EXHIBIT A SCOPE OF SERVICES The Consultant shall provide the following scope of services: Consultant shall develop a range of valuations for the utility (water and sewer systems) based on the income, market, and cost (asset) approaches. Reference to the utility applies to the water and sewer systems. Consultant shall also review financial and non- financial information related to the utility and determine its impact on the valuation. The valuation approaches will be used to determine an appropriate range for the valuation of the utility system (water and sewer). Consultant shall provide draft and final versions of a valuation report will be provided once the valuation is completed. Task 1: Data Collection and Review Consultant shall provide a detailed data request list to the utility. Once received, Consultant shall review both the financial and non-financial information pertaining to the water production, treatment, and distribution system assets as well as the sewer system assets. Task 2: Water and Sewer Utilities Valuation Consultant shall develop a range of values for the water and sewer facilities and assets that will represent a fair and reasonable value using industry-standard approaches. Three valuation approaches will be applied as follows: 1. Income approach - This approach considers the future earnings of the utility and applies discounting to reach a value in today’s dollars (present value). 2. Market (or comparative sales) approach - This approach considers comparable transactions filed through the ACC as a means of assessing value. System attributes and features will be used to create premiums and discounts. 3. Cost (or asset) approach - This approach uses both original and “reproduction cost new” (RCN) of the utility’s assets. In order to complete these valuation analyses, the following assumptions will apply: 1. Straight-line depreciation will be used to determine remaining asset value for inaccessible assets. 2. Engineering News-Record Construction Cost Index will be used for construction cost escalation assumptions. 3. The discount rate for present value calculations will be based on 30-year U.S. Treasury Bill yield curve or a more appropriate metric agreed upon with the utility. City Council Regular Meeting - Page 79 of 268 Page 4 of 39 Consultant shall prepare an Excel-based valuation model that includes the calculations and results for each of the valuation methods. The model will also include an asset registry that identifies all known above and below ground assets for the utility’s system. Task 3: Valuation Report After the preceding tasks have been completed, Consultant shall develop a draft water and sewer system valuation report that will be submitted to the City. The report will document the water and sewer asset inventory, valuation findings, and other adjustments or information pertinent to the value of the systems. Based on comments provided by City staff, Consultant shall finalize the study report and submit it to the City. Deliverables: 1. Draft valuation report 2. Final valuation report Task 4: Project Meetings Consultant shall expect to conduct four meetings with City staff throughout the course of the project. 1. Kick-off phone conference with City staff (attended by Consultant’s Partner in Charge and Project Manager) 2. Onsite meeting to present findings to City staff (attended by Consultant’s Project Manager) 3. Onsite meeting to present findings to the City Manager (attended by Consultant’s Partner in Charge and Project Manager) 4. Onsite Meeting to present findings to the City Council (attended by Consultant’s Project Manager) Task 5: Onsite Condition Assessment (Optional) Consultant shall conduct an on-site asset condition assessment of accessible water and sewer utility assets. This effort will involve visual inspection of above ground infrastructure to initially assess the degree to which the system components have been historically maintained. It is assumed that the visual inspection will consist of a one-day on-site field visit with one (1) discipline engineer (civil/mechanical) to verify assets, rate condition, and identify any other assets that may be present in the field but not in the information collected in Task 1. Field notes and digital photographs will be taken. At the site visit the discipline engineer will meet with the City’s operations personnel to discuss the operations and maintenance history for the water and sewer systems and to determine the operational effort and maintenance required to operate the systems. City Council Regular Meeting - Page 80 of 268 Page 5 of 39 SCHEDULE OF COMPENSATION Compensation shall not exceed Fifty-Three Thousand Three Hundred Eighty Eight $53,888. Billing shall be based on work completed in accordance to the following tasks and limits: Tasks Total Fees and Expense 1. Data Collection, Review and Kick-Off Phone Conference $9,320 2. Water and Sewer Utility Valuation $17,499 3. Planning Level Engineering Cost Estimates for non- pipeline assets $7,906 4. Draft and Final Reports $9,980 5. City Council Presentation $3,135 6. Onsite Condition Assessment $53,888 SCHEDULE OF PERFORMANCE Time is of the essence. Consultant shall complete the Final Report 3 months from the Notice to Proceed and present the Final Report to the City Council within 15 days from the release of the Final Report. Additional time may be granted upon approval from the City. City Council Regular Meeting - Page 81 of 268 Page 6 of 39 EXHIBIT B GENERAL TERMS AND CONDITIONS 1. Status as Independent Contractor. A. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of the City of Lynwood or otherwise act on behalf of Lynwood as an agent. Neither the City of Lynwood nor any of its agents shall have control over the conduct of Consultant or any of Consultant employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City of Lynwood. B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interests asserted against City by reason of the independent Consultant relationship created by this Agreement. In the event that City is audited by any Federal or State agency regarding the independent Consultant status of Consultant and the audit in any way fails to sustain the validity of a wholly independent Consultant relationship between City and Consultant, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto. C. Consultant shall fully comply with the workers' compensation law regarding Consultant and Consultant employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant failure to promptly pay to City any reimbursement or indemnification arising under this Section 1. D. Consultant represents to the City, and City relies on Consultant representations, that Consultant shall serve solely in the capacity of an independent contractor to the City. Neither the City nor any of its agents will have control over the conduct of Consultant or any of the Consultant employees, except as otherwise set forth in the Agreement. Consultant may not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. The City has no duty, obligation, or responsibility to the Consultant agents or employees, including the Affordable Care Act coverage requirements. Consultant is solely responsible for any tax City Council Regular Meeting - Page 82 of 268 Page 7 of 39 penalties associated with the failure to offer affordable coverage to its agents and employees under the Affordable Care Act with respect to Consultant agents and employees. Consultant warrants and represents that the City will not be responsible and will not be held liable for issues related to the Consultant status as an independent contractor, including Consultant failure to comply with Consultant duties, obligations, and responsibilities under the Affordable Care Act. Consultant further agrees to defend, indemnify, and hold the City harmless for any and all taxes, claims, and penalties against the City related to Consultant obligations under the Affordable Care Act. 2. Standard of Performance and City Responsibilities A. Consultant shall perform all work to the highest professional standards and in a manner reasonably satisfactory to the City Manager or his/her designee. The City Manager or his/her designee may from time to time assign additional or different tasks or services to Consultant, provided such tasks are within the scope of services described in Exhibit A. However, no additional or different tasks or services shall be performed by Consultant other than those specified in Exhibit A, or those so assigned in writing to Consultant by the City Manager or his/her designee. 3. Indemnification. A. Consultant is skilled in the professional calling necessary to perform the services and duties agreed to be performed under this Agreement, and City is relying upon the skill and knowledge of Consultant to perform said services and duties. B. City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "Indemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, defend, protect and hold harmless Indemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims"), which Indemnitees may suffer or incur or to which Indemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or other loss occurring as a result of or allegedly caused by Consultant performance of or failure to perform any services under this Agreement or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, subcontractor, sub consultant or employees, committed in performing any of the services under this Agreement. Notwithstanding the foregoing, the provisions of this subsection shall not apply to Claims occurring as a result of the City’s sole negligence or willful acts or omissions. C. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth in this Section from each and every subcontractor, sub consultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required in this Section, Consultant agrees to be fully City Council Regular Meeting - Page 83 of 268 Page 8 of 39 responsible according to the terms of this Section. Failure of the City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend Indemnitees as set forth herein shall survive the termination of this Agreement and is in addition to any rights which City may have under the law. This indemnity is effective without reference to the existence or applicability of any insurance coverage which may have been required under this Agreement or any additional insured endorsements which may extend to City. D. Consultant represents to the City, and City relies on Consultant representations, that Consultant shall serve solely in the capacity of an independent contractor to the City. Neither the City nor any of its agents will have control over the conduct of Consultant or any of Consultant employees, except as otherwise set forth in the Agreement. C o n s u l t a n t may not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. The City has no duty, obligation, or responsibility to Consultant agents or employees, including the Affordable Care Act coverage requirements. Cons u lt a n t is solely responsible for any tax penalties associated with the failure to offer affordable coverage to its agents and employees under the Affordable Care Act with respect to Consultant agents and employees. Consultant warrants and represents that the City will not be responsible and will not be held liable for issues related to Consultant status as an independent contract, including Consultant failure to comply with Consultant duties, obligations, and responsibilities under the Affordable Care Act. C o n s u l t a n t agrees to defend, indemnify, and hold the City harmless for any and all taxes, claims, and penalties against the City related to Consultant obligations under the Affordable Care Act 4. Insurance. A. Without limiting Consultant indemnification of Indemnitees pursuant to Section 3 of this Agreement, Consultant shall obtain and provide and maintain at its own expense during the term of this Agreement the types and amounts of insurance as described below: (I) Commercial General Liability Insurance using Insurance Services Office Commercial General Liability Form CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits shall be no less than $2,000,000 per occurrence for all covered losses and no less than $4,000,000 general aggregate. (II) Business Auto Coverage on ISO Business Auto Coverage Form CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits shall be no less than $1,000,000 per accident, combined single limit. If [Consultant] owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described in the preceding subsection. If Consultant or Consultant employees will use personal autos in any way on this project, [Consultant] shall provide evidence of personal auto liability coverage for each such person. City Council Regular Meeting - Page 84 of 268 Page 9 of 39 (III) If required by California law, Workers’ Compensation insurance on a state approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident for all covered losses;; (IV) Professional Liability or Errors and Omissions Insurance as appropriate to the profession, written on a policy form coverage specifically designed to protect against acts, errors or omissions of Consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy limit shall be not less than $2,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this Agreement. B. City, its officers, officials, employees and volunteers shall be named as additional insureds on the policy(ies) as to commercial general liability and automotive liability. C. All insurance procured pursuant to these requirements shall be written by insurers that are admitted carriers in the state of California with a Best’s rating of no less than A:VII. D. All insurance policies shall provide that the insurance coverage shall not be non- renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving City thirty (30) days' prior written notice thereof. Any such thirty (30) day notice shall be submitted to CITY via certified mail, return receipt requested, addressed to “Director of Human Resources & Risk Management,” City of Lynwood, 11330 Bullis Road, Lynwood, California, 90262. Consultant agrees that it will not cancel, reduce or otherwise modify said insurance coverage. E. Consultant shall submit to City (I) insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and (II) insurance policy endorsements indicating compliance with all other minimum insurance requirements above, not less than one (1) day prior to beginning of performance under this Agreement. Endorsements shall be executed on City’s appropriate standard forms entitled "Additional Insured Endorsement". F. Consultant insurance shall be primary as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees and volunteers shall be excess of Consultant insurance and shall not contribute with it. G. Consultant agrees that if it does not keep the aforesaid insurance in full force and effect, and such insurance is available at a reasonable cost, City may take out the necessary insurance and pay the premium thereon, and the repayment thereof shall be deemed an obligation of Consultant and the cost of such insurance may be deducted, at the option of City, from payments due Consultant 5. Confidentiality. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants City Council Regular Meeting - Page 85 of 268 Page 10 of 39 that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant covenant under this section shall survive the termination of this Agreement. 6. Ownership of Work Product. All reports, documents or other written material developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Such material shall not be the subject of a copyright application by Consultant. The provisions of this paragraph shall not apply to computerized claim forms and other proprietary software and materials (Consultant Proprietary Materials”), which are solely owned by Consultant. Such Consultant Proprietary Materials shall be clearly marked, designated or labeled by Consultant, and City agrees not to use or distribute any such Consultant Proprietary Materials without written permission of Consultant. 7. Conflict of Interest. A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement. B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to City as a result of the performance of this Agreement, or the services that may be procured by the City as a result of the recommendations made by Consultant covenant under this section shall survive the termination of this Agreement. 8. Termination. Notwithstanding any other provision, this Agreement may be duly terminated at any time by the City at its sole discretion with or without cause. Unless expressly agreed upon in writing by the City, the City shall not be obligated to pay for any services rendered nor any costs or expenses paid or incurred after the date of termination. The effective date of termination shall be upon the date specified in the written Notice of Termination. Consultant agrees that in the event of such termination, Consultant must refund the City its prorated share, except for services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written notice of termination, Consultant shall discontinue performing services, preserve the product of the services and upon payment for services, turn over to City the product of the services in accordance with written instructions of City. City Council Regular Meeting - Page 86 of 268 Page 11 of 39 9. Personnel. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City's premises. 10. Financial Condition. Prior to entering into this Agreement, Consultant has submitted documentation acceptable to the City Manager, establishing that it is financially solvent, such that it can reasonably be expected to perform the services required by this Agreement. Within thirty (30) days of the first anniversary of the effective date of this Agreement, and each year thereafter throughout the term of this Agreement, Consultant shall submit such financial information as may be appropriate to establish to the satisfaction of the City Manager that Consultant is in at least as sound a financial position as was the case prior to entering into this Agreement. Financial information submitted to the City Manager shall be returned to Consultant after review and shall not be retained by City. 11. Non-Discrimination and Equal Employment Opportunity. A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto. Such nondiscrimination shall include but not be limited to the following: employment, upgrading, demotion, transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials. 12. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant obligations hereunder, without the prior written consent of City, and any attempt by Consultant to assign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect. 13. Performance Evaluation. For any Agreement in effect for twelve months or longer, a written annual administrative performance evaluation shall be required within ninety (90) City Council Regular Meeting - Page 87 of 268 Page 12 of 39 days of the first anniversary of the effective date of this Agreement, and each year thereafter throughout the term of this Agreement. The work product required by this Agreement shall be utilized as the basis for review, and any comments or complaints received by City during the review period, either orally or in writing, shall be considered. City shall meet with Consultant prior to preparing the written report. If any noncompliance with the Agreement is found, City may direct Consultant to correct the inadequacies, or, in the alternative, may terminate this Agreement as provided herein. 14. Compliance with Laws. Consultant shall keep itself informed of State, Federal and Local laws, ordinances, codes and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. Consultant shall at all times comply with such laws, ordinances, codes and regulations. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section. 15. Licenses. At all times during the term of this Agreement, Consultant shall have in full force and effect all licenses (including a City business license) required of it by law for performance of the services hereunder. 16. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 17. Attorney's Fees. In the event that either party to this Agreement shall commence any legal or equitable action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and Consultant. 18. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during Consultant regular business hours or by facsimile before or during Consultant regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this section. 19. Governing Law. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State of California. 20. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument. City Council Regular Meeting - Page 88 of 268 Page 13 of 39 21. Severability. If any provision or any part of any provision of this Agreement is found to be invalid or unenforceable, the balance of this Agreement shall remain in full force and effect. 22. Entire Agreement. This Agreement, and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the Parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by the Mayor and attested by the City Clerk. 23. Authority. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. City Council Regular Meeting - Page 89 of 268 Valuation of the Water and Sewer Systems PROPOSAL / JANUARY 31, 2019 LynwoodCity of City Council Regular Meeting - Page 90 of 268 Table of Contents 01 Cover Letter 03 Firm Organization, Credentials and Background 06 Approach to the Scope of Work 08 Experience 14 Timeline 15 Qualifications of Proposed Personnel 39 References 42 Legal Issues 43 Disclosures 44 Additional Statements 45 Cost Proposal 40 Agreement to City Contract Terms and Ability to Obtain Insurance City Council Regular Meeting - Page 91 of 268 January 31, 2019 Ms. Lorry Hempe Public Works Special Projects Manager City of Lynwood 11750 Alameda St Lynwood, CA 90262 Subject: Proposal for Valuation of the Water and Sewer Systems Dear Ms. Hempe: Raftelis is pleased to submit this proposal to conduct a Water and Sewer System Utility Valuation for the City of Lynwood (City). With over 80 consultants, Raftelis has the largest and most experienced public water and wastewater utility financial and management consulting practice in the nation. We have provided financial planning, valuation, rate setting, and govern- ance support to more than 1,000 utilities across the country. Raftelis recently valued the Appomattox River Water Authority’s (Virginia) water assets and the City of Redlands’ water and sewer systems. A more detailed list of valuation experience is provided in the proposal. In addition, Raftelis has helped hundreds of agencies in California alone establish water and wastewater capacity fees, for which the first step involves a utility valuation using the cost approach. Our Project Team has extensive experience in utility valuation and governance, and a reputation for high quality service. John Mastracchio, PE, CFA will serve as the Project Director and is authorized to bind the firm. He will ultimately be responsible for this project and be available to provide his insight and guidance. John has completed numerous water utility valuations and governance assignments, including valuations for private investors such as Macquarie Securities, as well as public utility commissions. John will be supported by Steve Gagnon, PE (AZ), from our Los Angeles office. Mr. Gagnon is registered with the Securities and Exchange Commission as a Municipal Advisor and a registered environmental engineer in Arizona. He will lead our Los Angeles-based consultants in conducting analyses and preparing project deliverables. We are excited to use our valuation experience on this important project. If you have any questions about this proposal, please feel free to contact our Project Manager, Steve Gagnon, at 714.351.2013 or sgagnon@raftelis.com. Sincerely, John M. Mastracchio, PE (PA), CFA Steve Gagnon, PE (AZ) Vice President Manager 445 S. Figueroa Street, Suite 2270 Los Angeles, CA 90071 WWW.RAFTELIS.COM City Council Regular Meeting - Page 92 of 268 Raftelis is registered with the U.S. Securities Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB) as a Municipal Advisor. Registration as a Municipal Advisor is a requirement under the Dodd-Frank Wall Street Reform and Consumer Protection Act. All firms that provide financial forecasts that include assumptions about the size, timing, and terms for possible future debt issues, as well as debt issuance support services for specific proposed bond issues, including bond feasibility studies and coverage forecasts, must be registered with the SEC and MSRB to legally provide financial opinions and advice. Raftelis’ registration as a Municipal Advisor means our clients can be confident that Raftelis is fully qualified and capable of providing financial advice related to all aspects of utility financial planning in compliance with the applicable regulations of the SEC and the MSRB. 02 City Council Regular Meeting - Page 93 of 268 03FIRM ORGANIZATION, CREDENTIALS, & BACKGROUND RAFTELIS IS THE TRUSTED ADVISOR TO UTILITIES AND THE PUBLIC SECTOR. Raftelis provides utilities and public-sector organizations with insights and expertise to help them operate as high-performing, sustainable entities providing essential services to their citizens. We help our clients solve their finance, organizational, and technology challenges, achieve their objectives, and, ultimately, make their communities better places to live, work, and play. As evidenced by Raftelis’ 25 years of successfully providing consulting services to hundreds of utilities across the country and our continued growth, Raftelis is financially stable and has the resources to provide the requested services to the City in a satisfactory manner. We do not have any conditions that may impede the provided services. + Visit www.raftelis.com to learn more WHO IS Raftelis Principals of the Firm Peiffer Brandt - CEO Bill Stannard, PE - Chairman of the Board Jon Davis - Executive Vice President Rick Giardina, CPA - Executive Vice President Sudhir Pardiwala, PE - Executive Vice President Keith Readling, PE - Executive Vice President Elaine Conti - Vice President Tony Hairston - Vice President Sanjay Gaur - Vice President Henrietta Locklear, MPA - Vice President John Mastracchio, PE, CFA - Vice President Bart Kreps - Vice President Harold Smith - Vice President Type of Legal Entity Corporation Date Firm Established May 1993 (incorporated in April 2004) Location of Office that will Perform the Work 445 S. Figueora Street, Suite 2270 Los Angeles, CA 90017 Basic Services Provided by the Firm Financial Solutions: • Valuation • Affordability analysis and program development • Capital improvements planning/ prioritization and financing • Debt issuance support, Economic and financial evaluations • Financial planning and modelling • Rate, charge, and fee studies • Stormwater utility development and support Performance Solutions: • Asset Management • Customer service enhancement • Governance and stakeholder engagement • Organizational and operations optimization • Performance measurement and benchmarking • Strategic planning Technology Solutions: • Analytics and decision support • Business process development • Data management • Software solutions • Training and support • Visualization and dashboarding City Council Regular Meeting - Page 94 of 268 Raftelis has provided a wide range of valuation services to meet the needs of all types of buyers and sellers in the water and wastewater marketplace. Raftelis’ extensive experience and leadership in the water and wastewater utility industry gives us a key advantage over other specialists and appraisers. Furthermore, Raftelis’ objectivity and consistency in approach has provided confidence as to the reliability and objective nature of our results. VALUATION SERVICES Raftelis staff hold a unique set of experience, skills, and education vital to utility val- uation. Currently, Raftelis personnel hold the designa- tions of Professional Engineer (PE) in several states; Char- tered Financial Analyst (CFA); and Certified Public Accountant (CPA). The CFA is a professional designation that signifies professional stand- ards in finance, valuation, and investment management. Raftelis has assisted public entities with valuation issues for communities throughout the United States and has completed more than 40 utility valuation analyses over the past 15 years. Most of these engage- ments included an assessment of the value of the subject asset(s), valuation for impact fee development, and a financial feasibility analysis to estimate customer rate impacts and the long-term economic impact associated with acquisition or divestiture of utility assets. Raftelis has provided a variety of valuation-related services in the water and wastewater industry including: Fair Market Value Appraisals Raftelis utilizes the income, market, and/or asset approaches to value utility assets based on an arm’s length exchange between willing buyers and sellers in the marketplace. This service has involved more detailed, formal appraisals or high- level, preliminary valuation analyses. The subject of the appraisals has included phys- ical infrastructure assets, appraisals of utility business as a going concern, or valuation of “intangible” utility assets, such as water rights or capacity rights in a system. Investment Value (Feasibility) Analysis Raftelis has determined the “value” of a set of utility assets to specific buyers or sellers. These analyses have typically included the feasibility of buying a utility at a range of purchase prices. “Value” in this sense is typically defined by the client and can include the con- sideration of potential loss/gain in revenues, ability to pay for a system, specific rate impacts on customers, etc. Acquisition/ Regionalization Consulting Raftelis has provided assistance to utilities wishing to consoli- date their operations through acquisition or regionalization. This assistance has included: consultation regarding poten- tial political, public relations, and resource impacts; assess- ment of acquisition costs; assistance with negotiations; development and evaluation of various financing and repay- ment options; due diligence review of financials; operations procurement; and rate setting. Litigation Support Raftelis has experience in working with legal counsel to provide litigation services in support of its appraisal deter- mination, appraisal review, and has provided expert wit- ness testimony involving its appraisal work or other valua- tion matters. Appraisal Review Raftelis has reviewed and cri- tiqued valuation analyses and/ or appraisals performed by other appraisers. This type of service has been particularly important when two parties require an independent third- party to review the appraised value of a utility. Valuation Methodology There are three approaches for analyzing and estimat- ing Fair Market Value. These are referred to as the Income Approach, Market Approach, and Cost Approach. Income Approach values an asset based on the present value of its earnings in the future. Market Approach assesses transactions in the market place in order to value an asset. Cost Approach considers the cost to replace the asset to be valued. All three of these approaches must be considered to perform a Fair Market Value Appraisal. The appraiser then weights each approach to assess an overall value or uses the three approaches to establish a range of value. RAFTELIS’ CITY OF LYNWOOD04 City Council Regular Meeting - Page 95 of 268 OUR SUBCONSULTANT STETSON ENGINEERS INC. The firm was established by Thomas M. Stetson. Mr. Stetson’s successors Oliver Page, R.G.; Ali Shahroody, P.E.; and Steve Johnson, P.E., who are Principals in the firm, have maintained the founder’s focus on quality services and long-term relationships with a solid client base. For over six decades, Stetson has been providing creative solutions to water resources issues, considering and applying state-of-the-art or unique methods in addition to traditional approaches. Stetson has moved to the forefront of medium-sized consultants specializing in planning, water resources and problem solving. Stetson’s staff consists of over 50 technical professionals and support personnel with expertise in broad or relevant disciplines including surface water, hydrology and hydraulics, fluvial geomorphology, geophysics, and civil, environmental, and agricultural engineering. Supporting technical staff offers skills in soil and water science, watershed management, planning, geographic information systems (GIS) and mapping, resource economics, institutional analysis and public policy, and computer application. Stetson now staff offices in Carlsbad, Covina and San Rafael, California; Centennial, Colorado; and Mesa, Arizona. Stetson’s staff consists of approximately 50 technical professionals and support personnel with expertise in broad or relevant disciplines including surface water, hydrology and hydraulics, fluvial geomorphology, geophysics, and civil, environmental, and agricultural engineering. Stetson’s financial condition is sound and has no prior or pending bankruptcy, litigation, planned office closures, or impending merger. 05RAFTELIS Type of Legal Entity Corporation Date Firm Established 1957 (incorporated in 1977) Location of Office that will Perform the Work 861 Village Oaks Drive, Suite 100 Covina, CA 91724 Basic Services Provided by the Firm Municipal Engineering • Water Distribution System Modeling • Water System Master Plans • Recycled Water Systems • Storm Water System Analysis • Water Treatment Facilities • Wastewater Systems Groundwater Resources • Groundwater Modeling • Watermaster Services • Basin Investigations • Groundwater Development • Groundwater Management Plans • Water Wells/Planning, Design, Construction • Wellhead Protection Plans • icial Recharge Studies • Water Quality Assessments • Safe Yield Studies • Groundwater Cleanup and Aquifer Restoration • Geophysical Surveys Water Systems Management • Economic Feasibility • Operational Surveys • Rate Design/Analysis • System Appraisals and Valuations Environmental Engineering • Wetland/Riparian Hydrology • Impact Analysis/Restoration • Environmental Assessments and Impact Studies • Geomorphic Analysis • Fluvial Geomorphology Water Rights • Federal Reserved Water Rights Studies • Basin and River Adjudications • Water Right Valuations and Transfers • Legal and Institutional Support • Expert Witness Testimony Surface Water Resources • River Basin and Watershed Studies • Natural Flow Determinations • Reservoir Operations and System Modeling • Hydropower Investigations City Council Regular Meeting - Page 96 of 268 Project Approach Raftelis has used the cost approach to value hundreds of water and sewer utilities across California alone. The first step in implementing capacity fees is to value the utility using the cost approach – the main approach that we will use for this study. We will also use the market approach by reviewing comparable past sales and we discuss the applicability of the Income Approach below. Scope of Work TASK 1 Data Collection and Review and Kick-off Phone Conference Raftelis will prepare a data request which will identify the information needed to com- plete the valuation under the three approaches. This infor- mation will include financial and non-financial information and may include, but not be limited to, the following: Financial – Asset Database •The list of assets for each utility with the year of acquisition/construction •The original cost for each asset •The estimated useful life for the asset (we can provide these if they are not in the database) •The asset function/classifica- tion (land, supply, treatment, distribution, collection etc.) Non-Financial (as applicable) •Water and Wastewater Master Plans •Water and Wastewater Con- dition Assessments Note that often the asset database may be missing infor- mation; typically, it may be missing sections of the water distribution system or the wastewater collection system. If this is the case and the City has a Geographical Informa- tion System with a complete list of water and wastewater pipe, Raftelis can use recent con- struction costs/bids to calculate the replacement cost using the quantity-cost method. Kick-off Phone Conference We will use the kick-off con- ference to establish goals and the timeline. The kick-off call will address: •Introducing our Project Team and getting to know the City’s team •Establishing study goals and objectives •Finalizing the work plan and schedule •Discussing the data request and any additional data requirements •Identify potential chal- lenges and discuss potential solutions Prior to the project kick-off conference, Raftelis will pre- pare a data request and an agenda. City staff can add items to the agenda as needed. Meetings •Project kick-off phone conference Deliverables •Project kick-off meeting summary and data request TASK 2 Water and Sewer Utilities Valuation We will prepare a valuation in general accordance with the Uniform Standards of Pro- fessional Appraisal Practice (USPAP) guidelines and con- sidering the unique valuation aspects of publicly owned water and sewer utilities. This pre- liminary valuation will provide a range using common indus- try approaches (as applicable) to valuing utility assets. In general, the three approaches to valuation are the: •Cost Approach •Income Approach •Market Approach 06 APPROACH City Council Regular Meeting - Page 97 of 268 While these are the three rec- ognized approaches, we will primarily rely on the cost and market approach to estimate value. The logic behind the cost approach is that a prudent buyer will not pay more than the cost of acquiring a substi- tute property of equal utility. However, water utilities are natural monopolies and require special consideration in the val- uation process. While we will consider the market approach by reviewing applicable water and sewer system transactions and using sales comparisons to estimate the potential value of the City’s systems, there is not an active market for the buying and selling of water utility sys- tems. That makes it difficult, however not impossible, to find true and recent comparable sales transactions. Under the income approach, the value of a government-owned and regulated water utility is purposefully impaired because of the regulatory and rate-set- ting process. This framework constrains the earnings power (income) of an otherwise unregulated monopoly in order to protect customers. The income approach discounts future cash flows (net income) to present value. Under Prop- osition 218, rates need to be based on a utility’s costs which essentially negates free cash flow – making the income approach not well suited for valuation. While the income and market approaches will be considered, we will primarily rely on the cost approach to value of the system. Under the cost approach, we will estimate the original cost less depreciation (OCLD) and the replacement cost less depreciation (RCLD) values. We will review the non-finan- cial reports listed previously (and the optional condition assessment in Task 5, if per- formed) and other technical reports regarding the condi- tion of the utilities which may affect the remaining useful life of assets (i.e., the remaining depreciation). If the City does not have preferred useful lives, we will use common industry asset useful lives and adjust these values to account for the condition of the assets. Typ- ically, the transaction value of a utility falls between the OCLD and RCLD value esti- mates. Therefore, we will use these values as the range of potential value of the system. However, we will adjust these values based other items, such as grant and developer con- tributions used to fund the systems (if known), the used and remaining useful life, and the amount of equity and lia- bility associated with the water system, among other factors. We assume that the City has adequate fixed asset records regarding asset descriptions, original cost, dates placed in service, equipment/mate- rial type and quantities, and historical maintenance and repair records. Based on this information, we will utilize the trending method of esti- mating the replacement cost of the assets, rather than the quantity-unit cost method (which uses the quantity of pipe (diameter-foot) multiplied by current construction costs per linear foot). If accounting records do not have all the pipeline segments and the City has a GIS system which does, we could use the quantity-unit cost method. Meetings •Two on-site meetings to present results to City staff and the City Manager Deliverables •Valuation model in Microsoft Excel TASK 3 Draft and Final Valuation Report Raftelis will prepare a Draft and Final Valuation Report. The report will detail the meth- odology, show the calculations and results of the valuation, and lead the reader step-by- step through tables that derive the valuation. City staff com- ments will be incorporated into the final version. Meetings •Up to two phone calls to dis- cuss the report Deliverables: •Report in Microsoft Word TASK 4 Planning Level Engineering Cost Estimates for Non-Pipeline Assets Stetson will assist Raftelis in estimating the cost of repro- ducing the City’s water and sewer assets (facilities) as of the date of valuation. The sources of information to estimate the cost of reproduc- ing the facilities may include actual construction cost data, construction cost data of other water systems, cost quotations from actual vendors and con- tractors, RS Means Building Construction Cost Data, and construction cost indices from Engineering News-Record. All cost estimates will include cost factors for overhead (includ- ing design, administration, surveying, inspection, and contingencies). Cost estimates will be based on a Class 4 estimate pursuant to AACE International. Stetson will provide Raftelis with the estimated cost of reproducing the following facilities owned by the City: Water Facilities •Five wells (5, 8, 9, 11, and 19) •Three booster pumps •3 MG concrete reservoir •Chlorine tanks and pumps •Structures (well houses, booster pump building, and chlorine buildings) Sewer Facilities •One lift station •Manhole (the cost of an average manhole will be estimated) Stetson will also provide a brief overall memorandum summa- rizing the methodology used to prepare the cost estimates. TASK 5 City Council Presentation Raftelis will present the valua- tion to City Council where we will detail the methodology, summarize the calculations and provide a range of valu- ations. We will answer City Council questions as directed by City staff. Meetings •One in-person presentation to City Council Deliverables: •Presentation in Microsoft Powerpoint RAFTELIS 07 City Council Regular Meeting - Page 98 of 268 TASK 6 Onsite Condition Assessment and Memo (Optional) Under Task 5, Stetson Engineers Inc. (Stetson) will prepare an on-site asset condition assessment of accessible water and sewer utility assets owned by the City. The assess- ment will consist of a one-day field visit by at least one licensed civil engineer (from Stetson) and City staff to confirm the existing observable assets and to review their con- ditions. The assessment will be limited to major above-ground water and sewer facilities including groundwater production well pumps, booster pumps, reservoirs, disinfection systems, interties with other agencies, and lift stations. However, pipelines and other ancillary water facilities, such as valves, meters, and the interiors of vaults, reservoirs, and electrical panels, will not be assessed. Prior to the on-site condition assessment, Raftelis will coordinate with Stetson to confirm the facilities to be assessed, as well as any other onsite data which can be readily collected during the one-day field visit. During the onsite condition assessment, Stetson will take digital photographs of all assessed facilities, record field notes, and discuss any operations and maintenance history and issues with City staff. Stetson will prepare and provide Raftelis with a brief memorandum summarizing the City’s assets which were assessed, photographs of the assessed facilities, and any exceptional physical and operations and mainte- nance issues which may affect the valuation of the assessed facilities. Stetson is currently registered with the Department of Industrial Relations. Meetings •None Deliverables: •Condition memo in Microsoft Word CITY OF LYNWOOD08 City Council Regular Meeting - Page 99 of 268 This map shows some of the clients that we have assisted. 25 % Raftelis has provided financial/organizational/ technology assistance to utilities serving more than of the U.S. population. Our staff have assisted more than 1,000 utilities across the U.S., including some of the largest and most complex agencies in the nation. In the past year alone, Raftelis worked on more than 600 financial/organizational/ technology consulting projects for over 400 utilities in 40 states, the Dis- trict of Columbia, and Canada. Experience RAFTELIS HAS THE MOST EXPERIENCED UTILITY FINANCIAL AND MANAGEMENT CONSULTING PRACTICE IN THE NATION. 09EXPERIENCE City Council Regular Meeting - Page 100 of 268 FINANCIAL AND RATE CONSULTING MANAGEMENT CONSULTING STATECLIENTAFFORDABILITY ANALYSIS AND PROGRAM DEVELOPMENTDEBT ISSUANCE SUPPORTDISPUTE RESOLUTIONFINANCIAL AND CAPITAL IMPROVEMENTS PLANNINGIMPACT FEESRATE CASE SUPPORTRATE STUDYRISK ANALYSISSTORMWATER UTILITY DEVELOMENTCUSTOMER RELATIONSHIP MANAGEMENTCUSTOM SOFTWARE AND TOOL DEVELOPMENTDATA SERVICESGOVERNANCE / ORGANIZATIONAL OPTIMIZATIONPERFORMANCE MANAGEMENT AND BENCHMARKINGPROJECT/PROGRAM PROCUREMENT ASSISTANCEPUBLIC/STAKEHOLDER EDUCATION, OUTREACH, AND FACILITATIONSTORMWATER PROGRAM DEVELOPMENT SUPPORTSTRATEGIC BUSINESS PLANNINGWATER/WASTEWATER UTILITY VALUATIONAL Birmingham Water Works Board AL Mobile Area Water & Sewer System AR Central Arkansas Water AR Little Rock Wastewater Utility AZ Phoenix, County of AZ Pima County AZ Tucson Water CA Anaheim, County of CA Beverly Hills, County of CA MWD of Southern California CA San Diego, County of CA San Francisco PUC CO Denver Water CO Denver Wastewater, County of DC DC Water DE Wilmington, County of FL Clearwater, County of FL Pompano Beach, County of FL Port St. Lucie, County of FL St. Johns County GA Columbus Water Works HI Honolulu ENV, County and County of IL Naperville, County of KS Wichita, County of KY Hardin County Water District #1 LA New Orleans, Sewerage & Water Board of MA Boston Water and Sewer Commission MD Baltimore, County of MD Oakland County MI Saginaw, County of MI Saginaw-Midland Municipal Water Supply Corporation NATIONAL EXPERIENCE This matrix shows a brief sample of some of the utilities throughout the U.S. and Canada that Raftelis staff have assisted and the services performed for these utilities. 10 CITY OF LYNWOOD City Council Regular Meeting - Page 101 of 268 FINANCIAL AND RATE CONSULTING MANAGEMENT CONSULTING STATECLIENTAFFORDABILITY ANALYSIS AND PROGRAM DEVELOPMENTDEBT ISSUANCE SUPPORTDISPUTE RESOLUTIONFINANCIAL AND CAPITAL IMPROVEMENTS PLANNINGIMPACT FEESRATE CASE SUPPORTRATE STUDYRISK ANALYSISSTORMWATER UTILITY DEVELOMENTCUSTOMER RELATIONSHIP MANAGEMENTCUSTOM SOFTWARE AND TOOL DEVELOPMENTDATA SERVICESGOVERNANCE / ORGANIZATIONAL OPTIMIZATIONPERFORMANCE MANAGEMENT AND BENCHMARKINGPROJECT/PROGRAM PROCUREMENT ASSISTANCEPUBLIC/STAKEHOLDER EDUCATION, OUTREACH, AND FACILITATIONSTORMWATER PROGRAM DEVELOPMENT SUPPORTSTRATEGIC BUSINESS PLANNINGWATER/WASTEWATER UTILITY VALUATIONMI Wyoming, County of MO Metropolitan St. Louis Sewer District MS Jackson, County of NC Charlotte Water NC Durham, County of NC Raleigh, County of NV Henderson, County of NY New York County Water Board OH Northeast Ohio Regional Sewer District OR Portland Water Bureau, County of PA Philadelphia Water Department RI Newport, County of RI Providence Water Supply Board SC Spartanburg Water System TN Nashville and Davidson County MWS TX Dallas, County of TX El Paso Water Utilities PSB TX San Antonio Water System UT Salt Lake City, City of VA Henrico County VA Hopewell, City of VA Newport News Waterworks, City of VA Prince William County Service Authority VA Richmond DPU, County of VA Suffolk, County of VA Virginia Beach, City of VA Wight County, Isle of WA Tacoma, County of WI Milwaukee Water Works Can Ottawa, County of 11RAFTELIS City Council Regular Meeting - Page 102 of 268 Appomattox River Water Authority VIRGINIA Project Name: Valuation of Water System Assets and Review of Governance & Ownership Alternatives Client Contact: Robert Wichser, Executive Director P: 804.590.1145 x101 Project Manager: John Mastracchio, PE, CFA Project was completed within the proposed budget Raftelis completed valuation and governance/ownership assessments for the Appomattox River Water Authority (ARWA or Authority) to help the Authority and its Board of Directors assess the value of its water system and evaluate potential changes or enhancements to its governance and ownership structure to address the needs of the Authority and its members. ARWA is a water authority that provides potable water on a wholesale basis to five municipal jurisdictions, including the City of Petersburg, the City of Colonial Heights, Chesterfield County, Dinwiddie County, and Prince George County. The water system that was valued is comprised of a raw water reservoir (Lake Chesdin) with a capacity of 9.3 billion gallons, the Brassfield Dam, raw water pumping and pipeline, a water treatment plant with a capacity of 22 million gallons per day, a finished water pump station, and a transmission main network. The valuation assessment considered four approaches to determin- ing the system value: the Cost Approach, the Income Approach, the Sales Comparison Approach, and the Rate Base Approach. The valuation using these approaches was completed in general accord- ance with the Uniform Standards of Professional Appraisal Practice (“USPAP”) guidelines. The governance and ownership alternatives evaluation consisted of the identification of governance and ownership challenges reported by ARWA Board members, and identified several alternatives to address them. These challenges included (1) the inability to transfer capacity among member jurisdictions, (2) differing interests regard- ing system expansion, (3) capacity limitations in the transmission mains, (4) financing challenges. Several alternatives were evaluated to address these challenges, including updating the service agree- ments with the member jurisdictions, acquisition of the system by one of the member jurisdictions, and a combination of both alternatives. The results of the assessment and evaluation were documented in a detailed valuation and governance/ownership assessment report, and were presented and discussed with ARWA staff and its Board of Directors. City of Redlands CALIFORNIA Project Name: Water & Wastewater Rate Study/Capacity Charges/Valuation Study Client Contact: Chris Diggs, Former Utility Director (currently with the City of Pomona as a Water Resources Director) P: 909.557.4963 Project Manager: Sudhir Pardiwala, PE Project was completed within the proposed budget Raftelis estimated the value of the water and sewer assets owned by the City of Redlands (City) under the asset approach to val- uation. It is Raftelis’ understanding that this report will be used by the City to determine an appropriate annual lease payment if it wishes to lease its water and sewer facilities to another party. Raftelis’ analysis included a valuation of the City’s water rights. Raftelis completed a water and wastewater rate study for the City of Redlands (City) to review their rate structure in light of Proposition 218 requirements. The goal was to develop rates that adhere to cost of service and pay for necessary capital improve- ments. The study included a comprehensive review of the City’s revenue requirements and allocation methodology, review of the City’s user classification, a cost of service analysis, and rate design for City users. We assisted the City with a review of their billing system to compile data needed for this study. The study was conducted with input from a 12-member Utility Advisory Committee. Over a dozen workshops with the Committee were conducted to explain concepts, gather feedback from Committee members, and to discuss the overall findings of the study. Rates were implemented in February 2005. The City charges separate fees for water source acquisition and facilities. The water source acquisition fees are based on the costs of purchasing water rights. Raftelis assisted the City with the development of the water acquisition fees and facilities fees. The capacity fee calculation involved a review of the existing assets and future CIP that would benefit both existing and future customers. The calculated fee was based on a hybrid methodology including existing and future facilities. Water source acquisition fees to provide water supply were computed separately. Fees for the non-potable system, including recycled water, were calculated to recover costs and provide incentives to users. Raftelis has a history of working for Redlands. In 2010 and 2014, Raftelis updated their water and wastewater rates with input from the Utility Advisory Committee and surveyed neighboring utili- ties to benchmark rates. RAFTELIS PROJECTS 12 CITY OF LYNWOOD City Council Regular Meeting - Page 103 of 268 City of San Diego CALIFORNIA Project Name: Valuation Study Client Contact: Lee Ann Jones-Santos, Assistant Director - PUD P: 858.614.4042 Project Manager: Habib Isaac Project was completed within the proposed budget Raftelis conducted a technical analysis for the City to evaluate the base value (unimproved) and cost of providing groundwater in the San Pasqual Groundwater Basin. Requests for this type of analysis are fairly unique and Raftelis worked closely with City staff to craft an innovative approach to meet the City’s needs. Major objectives of the study included cataloging City costs associated with ground- water management, calculating the base value of groundwater on a per acre foot basis, determining the unit cost of groundwater under several system-wide improvement scenarios, and comparing the estimated costs of San Pasqual groundwater with that of other water rights. The analysis determined costs for groundwater using recent bond issues for acquiring groundwater rights and the value of agricultural lands with similar uses as a proxy for the value of groundwater rights. The model that was developed allows for the inclusion of a meter installation project wherein all current les- sees are retrofitted with metering infrastructure to measure water usage. The study included a water rights survey across Southern and Central California to compare against the base value calcula- tion for the San Pasqual basin. Finally, the study estimated penalty costs for groundwater produced in the basin in excess of the sus- tainable yield of the basin using the marginal cost of alternative water supplies. Raftelis conducted a valuation analysis of the City of San Diego’s ownership of capacity in the All American Canal (AAC). Raftelis’ analysis will potentially be used in negotiations with the Gov- ernment of Mexico and the International Boundary and Water Commission to ease political tensions that have risen due to the relining of the AAC and decreased water supply to border residents. City of Manassas VIRGINIA Project Name: Water System Valuation Client Contact: Tony H. Dawood, P.E., Director of Utilities P: 703.257.8382 Project Manager: Bart Kreps Project was completed within the proposed budget Raftelis was engaged by the City of Manassas, Virginia (City) to provide utility and valuation related services. The City was con- sidering the potential purchase of the City of Manassas Park’s (Manassas Park) water distribution and wastewater collection system (collectively, the System). Raftelis’ scope of services included an initial estimate of the value of the System to facilitate discussions between the City and Manassas Park. In this study Raftelis utilized the Income Approach to valuing Manassas Park’s System, which is based on the premise that an asset is worth the present value of its future earnings. Raftelis worked collaboratively with the City and its engineering con- sultants to develop a projection of cash flows that were used to estimate the distributable income of the utility in perpetuity, discounted back to the valuation date. The cash flow projections considered the revenues generated by the System; the incremental costs the City will incur to operate, maintain, and capitalize the System; and any potential savings for the City related to the defer- ral of capital investments as a result of more efficient wastewater capacity utilization. 13RAFTELIS City Council Regular Meeting - Page 104 of 268 STETSON PROJECTS City of Perris Water and Sewer System CALIFORNIA Project Name: Appraisal of Fair Market Value Client Contact: Habib Motlagh, City Engineer P: 951.378.6173 Project Manager: Stan Chen, PE Project was completed within the proposed budget Stetson prepared an update to the City of Perris’ “Appraisal of Fair Market Value of City of Perris Water and Sewer System”. In addition, Stetson prepared an Appraisal of Fair Market Value of the North Perris Water System. The project included a condition assessment of the City of Perris’ facilities by Stetson. City of Lakewood CALIFORNIA Project Name: Water System Master Plan and Rate Study Client Contact: Jason Wen, Director of Water Resources P: 562.866.9771 Project Manager: Stan Chen, PE Project was completed within the proposed budget Stetson prepared a Water System Master Plan and Rate Study for the City of Lakewood in 2017. The Water System Master Plan included an update to the hydraulic model, a review of existing/future water demands, all sources of supply, a review of SCADA operations and a proposed rate structure. The project included a condition assessment of the City of Lakewood’s facilities by Stetson. The Stetson Team worked closely with the City of Lakewood staff and City Council to successfully complete this project. The Stetson Team included RFC and Control Automation Design. City of San Jacinto CALIFORNIA Project Name: Water & Sewer System Master Plan Client Contact: Arthur Mullen, Collection Systems Operator II P: 951.654.4041 Project Manager: Stan Chen, PE Project was completed within the proposed budget Stetson prepared a Water System Master Plan and a Sewer System Master Plan for the City of San Jacinto in 2018. The project included a condition assessment of the City of San Jacinto’s water and sewer facilities by Stetson. 14 CITY OF LYNWOOD City Council Regular Meeting - Page 105 of 268 A proposed project schedule is shown below. The schedule is somewhat flexible should the City desire a faster turnaround time. Timeline TIMELINE 1. Data Collection, Review and Kick-off Phone Conference 2. Water and Sewer Utility Valuation 3. Planning Level Engineering Cost Estimates for Non- Pipeline Assets 4. Draft and Final Reports 5. City Council Presentation In-Person Meetings / Workshops Web Meetings Deliverables February March April May 15 City Council Regular Meeting - Page 106 of 268 OUR TEAM INCLUDES SENIOR- LEVEL PROFESSIONALS TO PROVIDE EXPERIENCED PROJECT LEADERSHIP, WITH SUPPORT FROM TALENTED CONSULTANT STAFF. This organizational chart shows our project team. We have included brief profles of qualifications, experience, and project roles for each of our team members followed by detailed resumes. PROJECT MANAGER Steve Gagnon, PE (AZ) ENGINEER SUPPORT (SUB CONSULTANT) Jeff Helsley, PE Stan Chen, PE PROJECT DIRECTOR John Mastracchio, PE (PA), CFA STAFF CONSULTANTS Kevin Kostiuk Corrine Schrall Charles Diamond CITY OFLYNWOOD Qualifications 16 QUALIFICATION OF PROPOSED PERSONNEL City Council Regular Meeting - Page 107 of 268 PROJECT DIRECTOR John Mastracchio PE (PA), CFA Vice President (Raftelis) PROJECT ROLE Will be responsible for this project and be available to provide his insight and guidance. CAREER HIGHLIGHTS •23 years of experience •Consulting experience with Appomattox River Water Authority, Newark, Passaic Valley Sew- erage Commission, Chesterfield County, Virginia Beach, & Henrico County •Certifications: Chartered Financial Analyst; Professional Engineer (PA); Lean Six Sigma; Reg- istered Municipal Financial Advisor PROJECT MANAGER Steve Gagnon PE (AZ) Manager (Raftelis) PROJECT ROLE Will manage the day-to-day aspects of the project ensuring it is within budget, on schedule, and effectively meets the City’s objectives. He will also lead the consulting staff in conducting analyses and preparing deliverables for the project, and he will serve as the City’s main point of contact. CAREER HIGHLIGHTS •20 years of experience •Member of CA-NV AWWA Rates and Charges Committee •Consulting experience with Redwood, Lakewood, Pomona, San Dieguito Water District, Santa Fe Irrigation District, Sweetwater Authority, Olivenhain Municipal Water District, & Encina Wastewater Authority •Certifications: Securities and Exchange Commission as a Municipal Advisor; Registered Envi- ronmental Engineer in Arizona STAFF CONSULTANT Kevin Kostiuk Senior Consultant (Raftelis) PROJECT ROLE Will work at the direction of Mr. Gagnon in conducting analyses and preparing deliverables for the project. CAREER HIGHLIGHTS •11 years of experience •Consulting experience with Borrego Water District, Santa Cruz County, Monterey County Water Resources Agency, Camarillo, East Valley Water DIstrict, Goleta Water District, Placer County Water Agency, & Soquel Creek Water District 17RAFTELIS City Council Regular Meeting - Page 108 of 268 STAFF CONSULTANT Charles Diamond Consultant (Raftelis) ENGINEERING SUPPORT Jeff Helsey PE Supervising Engineer (Stetson) ENGINEERING SUPPORT Stan Chen PE Civil Engineer (Stetson) STAFF CONSULTANT Corrine Schrall Consultant (Raftelis) PROJECT ROLE Will work at the direction of Mr. Gagnon in conducting analyses and preparing deliverables for the project. CAREER HIGHLIGHTS •3 years of experience •Consulting experience with Brentwood, Dixon, Sonoma, Rancho California Water DIstrict, & La Cañada Irrigation District PROJECT ROLE Will provide engineering support. CAREER HIGHLIGHTS •19 years of experience •Engineering experience with Lakewood, Covina, Glendora, Industry, & San Jacinto •Certification: Civil Engineer No. 039599, California, 1985 PROJECT ROLE Will provide engineering support. CAREER HIGHLIGHTS •17 years of experience •Engineering experience with Lakewood, Covina, Glendora, Industry, & San Jacinto •Certifications: E.I.T. No. 107911, State of California, July 9, 1999 / P.E. No. 66883, State of California, June 25, 2004 PROJECT ROLE Will work at the direction of Mr. Gagnon in conducting analyses and preparing deliverables for the project. CAREER HIGHLIGHTS •6 years of experience •Consulting experience with Camarillo, Hollister, Orange, Atwater, Alameda County Water Agency, & El Toro Water District Subconsultant: Stetson Engineers Inc. Address: 861 Village Oaks Drive, Suite 100, Covina, CA 91724 Contact Person: Jeff Helsley, PE / P: 626.967.6202 Ext. 25 18 CITY OF LYNWOOD City Council Regular Meeting - Page 109 of 268 SPECIALTIES • Financial Analysis and modeling • Financial Planning, Cost of Service, Rate Design • Bond Feasibility Studies • Transactional Due Diligence Support • Government Consolidation / Regionalization • Public-Private Partnerships • Inter-Municipal Agreement Support • Valuation assessments • Expert Witness and Litigation support • Benchmarking • Capital Financing and Project Planning • Business Process Improvement • Asset Management / Business Case Evaluations PROFESSIONAL HISTORY • Raftelis: Vice President (2017-present) • Arcadis, U.S., Inc. - (2003-2017) • Arthur Andersen (2001-2002) • Parsons Corporation (1994-2000) EDUCATION • Master of Business Administration, Finance – Cornell University (2001) • Master of Science, Civil & Environmental Engineering – Clarkson University (1994) • Bachelor of Arts – State University of New York, College at Geneseo – (1993) PROFESSIONAL MEMBERSHIPS • American Water Works Association: Vice Chair of Finance, Accounting, and Management Controls Committee • National Council for Public-Private Partnerships • Water Environment Federation CERTIFICATIONS • Chartered Financial Analyst • Professional Engineer (PA) • Lean Six Sigma • Series 50 Municipal Advisor Representative John Mastracchio PE, CFA Project Director Vice President (Raftelis) Mr. Mastracchio is a Vice President serving in a national role and leading the North- eastern practice of Raftelis. His more than 22 years of experience as a financial and management consultant serving the utility, governmental, and private sectors. His experience includes financial planning and rate setting, capital financing, asset man- agement, regionalization, litigation support, and transactional consulting, and spans several utility sectors including water, wastewater, electric, solid waste, and stormwater, along with consulting for general government, transportation, and ports. Mr. Mastracchio is a published author and an active member of several industry committees. He is a member of the Rates & Charges and Finance, Accounting & Man- agement Controls committees of the American Water Works Association (AWWA), and is a contributing author of many industry publications on rate setting, financial planning, and capital financing, including the AWWA’s: Manual of Practice M1, Prin- ciples of Water Rates, Fees, and Charges; Water Rates, Fees, and the Legal Environment; Manual of Practice M29, Water Capital Financing; and Financial Management for Water Utilities: Principles of Finance, Accounting, and Management Controls, along with the textbook The Effective Water Professional: Leadership, Communication, Management, Finance, and Governance, published by the Water Environment Federation (WEF). Mr. Mastracchio is a professional engineer and has earned the Chartered Financial Analyst (CFA) designation. RELEVANT PROJECT EXPERIENCE The Metropolitan District (CT) Water Utility Valuation. Completed valuations of publicly-owned and investor-owned water utilities regulated by the Department of Public Utility Control to assist our client in making utility acquisition decisions. The target utilities provide water service to more than 200,000 people in the northeastern US. Borough of Haledon (NJ) Water System Valuation. Completed an appraisal of a municipal water system in New Jersey to assist the client in making acquisition decisions. The appraisal was completed to establish a baseline for the utility system and its negotiated sale. City of Miamisburg (OH) Water System Valuation. Completed a water system valuation assessment for the City to support the financial evaluation of the potential sale of the City’s water system to a neighboring municipality. New Jersey Department of Public Advocate (NJ) Water Utility Valuation. Served as a valuation expert and provided testimony in the matter of the Joint Petition of the City Trenton, New Jersey and New Jersey American Water Company, Inc. for authorization of the purchase and sale of the assets of the out- side water utility system of the City of Trenton, New Jersey. Prepared expert testimony and assisted the NJPUC make a decision regarding approval of the acquisition proposal. 19RAFTELIS City Council Regular Meeting - Page 110 of 268 Macquarie Securities, Inc. (NY) Financial and Technical Support Regarding Water System Acquisi- tion. Task Leader for the financial analysis as part of due diligence investigation for the valuation and acquisition of a Water Com- pany in the eastern U.S. Services included assistance in developing long-term capital improvement plan, review and development of financial modeling assumptions regarding supply and demand, operation and maintenance costs, capital expenditures and gen- eral rate setting methodology in accordance with each state’s rate setting principles and requirements. Recommendations regard- ing the acquisition and future capital and operating requirements including projections of revenues and rate of return ROR for each of the five regulated utilities were presented. Utilities Inc. (IL) Water System Valuation and Strategic Financial Consulting. Managed the completion of financial assessments, including the projection of performance and business value for more than 90 operating companies of an investor-owned utility. Provided anal- ysis results to the senior leadership team of Utilities, Inc. Capital Region Water (PA) Asset Valuation, Capital and Financial Planning Support. Led finan- cial analysis efforts in the planning and execution of the transfer of conveyance assets from the City of Harrisburg to the client, involv- ing asset valuation, revenue and expense projections, and analysis of shared services costs between the City and client. Completed a bond feasibility report for the water system consisting of asset con- dition assessment and the development and projection of capital improvement needs over a five year forecast period to satisfy trust indenture requirements.Provided financial consulting services to the client, including the development of financial plans and rate projec- tions, consisting of demand forecasts, projections of revenues and expenses, modelling fiscal requirements and targets, identification of rate revenue requirements, allocation of costs to both retail and wholesale customers, and calculation of utility rates. Hill Air Force Base (UT) Public-Private Partnership Lease Arrangement. Senior Analyst for the financial analysis of a proposed Enhanced Use Lease (EUL) at Hill Air Force Base. The analysis included evaluating real estate market conditions and land sales data, completing a life cycle cost analysis of Air Force office space procurement options and devel- oping valuation models for potential site development scenarios. Other activities included developing the financial portion of the Business Case analysis, supporting presentations to leadership, responding to technical questions and developing potential site development scenarios. Lee County (FL) Asset Valuation and Business Case Evaluation. Provided economic and financial support of the Lee County Asset Management pro- gram. Facilitated asset valuation and business case evaluation workshops to help develop asset risk prioritization and a capital improvement plan prioritization approach. Developed an interac- tive financial model to assess the financial implications of funding the capital plan to meet the desired level of service goals. Westchester Joint Water Works (NY) Governance and Financial Evaluation.Provided financial consult- ing support to the WJWW including developed projections of rate revenue requirements, completed cost of service studies to ensure costs allocated equitably to each of its customers, and assisted the member municipalities in revising their rate structures. Also assisted the WJWW in evaluating various governance structures, developing annual budgets, and has also assisted the WJWW in revising it rate methodologies associated with its wholesale water customers, changing from a location-specific cost of service approach to an average cost approach. The results of these efforts have improved the fairness and equity of the water rates charged to WJWW’s customers. Nassau County (NY) Water System Consolidation Study. Assisted the Nassau County Executive evaluate the potential benefits and challenges of con- solidating, regionalizing or otherwise optimizing water service within the County, and to development of a blueprint for such optimization. The study addressed the manner in which regional optimization could affect the cost of water service to County residents and the potential impacts on water service within the County. Led consulting team in evaluating the financial implica- tions of consolidating 52 water systems in Nassau County. Metropolitan Sewer District (NC) Merger Feasibility Study. Evaluated the cost and financial impacts of merging the City of Asheville water system with the Metropol- itan Sewer District. Prepared financial assessments and financial models under various operational and governance alternatives. RECENT PUBLICATIONS/PRESENTATIONS •Mastracchio, J.M. “New & Emerging Capital Providers for Infra- structure Funding”, presented at the 2017 NACWA Conference, Tampa, FL, February 6, 2017. •Mastracchio, J.M. “Innovations in Water Infrastructure Financ- ing: Addressing the Infrastructure Gap”, presented at the 2017 Utility Management Conference, Tampa, FL, February 8, 2017. •Mastracchio, J., Huestis, T., Petersen, E. 2017. New & Emerging Capital Providers for Infrastructure Funding. Project #4617. Denver, Colo.: Water Research Foundation. •Mastracchio, J., A. Santos, R. Giardina, R. Raucher, K. Raucher, M. Wyatt Tiger, J. Hughes, and R. Atwater. 2016. Rate Approval Process Communication Strategy and Toolkit. Project #4455. Denver, Colo.: Water Research Foundation. Mastracchio, J.M. “The Effective Water Professional: Leadership, Communication, Management, Finance, and Governance”, Water Environment Federation, 2015. •Mastracchio, J.M. “Five Ways to Achieve Long-Term Financial Strength”, presented at the 2015 Utility Management Confer- 20 CITY OF LYNWOOD City Council Regular Meeting - Page 111 of 268 ence, Austin TX, February 18, 2015. •Mastracchio, J.M. “Financial Management: Equip Your Utility for Economic Resilience”, presented at the 2014 American Water Works Association Conference, Boston, MA, June 9, 2014. •Mastracchio, J.M. “Rate Approval Triumphs and Challenges: Keys to Successful Governing Board Communications”, presented at the 2014 American Water Works Association Con- ference, Boston, MA, June 10, 2014. •Mastracchio, J.M., et al., “Water Capital Financing, Manual of Practice M29,” Led the subcommittee involved in updating and publishing a new edition of the M29 manual. •Mastracchio, J.M., et al., “Developing Rates for Small Systems M54,” Chapter author involved in updating and publishing a new edition of the M54 manual. •Mastracchio, J.M., “Preparing a Utility For Financing,” pre- sented at the 2013 Utility Management Conference, Glendale, AZ, March 11, 2013. •Mastracchio, J.M., et al., Financial Management for Water Utilities: Principles of Finance, Accounting, and Management Controls, American Water Works Association (AWWA), 2nd Edition, 2012. •Mastracchio, J.M., “Financial and Rate Planning, A Strategic Perspective,” presented at the New York State County Manager’s Association Annual Meeting, Albany NY, February 29, 2012. •Corssmit, C.W., Editor, and contributing editors, reviewers, and technical editors: Hildebrand, M., Giardina, R.D., Malesky, C.F., Matthews, P.L., Mastracchio, J.M., “Water Rates, Fees, and the Legal Environment,” American Water Works Association (AWWA), 2nd Edition, 2010. ISBN 978-1-58321-796-2. •Mastracchio, J.M., Ginley, J.F., “Utility to Utility Collaboration: Working Together to Tackle Today’s Issues,” presented at the Annual Conference of the American Water Works Association, New York Section, Saratoga Springs NY, April 20-22, 2010. •Mastracchio, J.M., “Budgeting and Financial Planning,” <u>in</ u> Wastewater Collection System Management, Manual of Prac- tice No. 7, Chapter 8. Water Environment Federation 2009. •Mastracchio, J.M., “The Dollar Stretch: A Rate and Financial Review Warm Up,” presented at the Workshop on Strategic Financial Planning: The Utility’s Road Map to Financial Health, Annual Conference and Exposition of the American Water Works Association (AWWA), San Diego CA, June 14-18, 2009. •Mastracchio, J.M., et al., “Financing Water and Wastewa- ter Utility Capital Program Needs,” presented at the Utility Management Conference sponsored jointly by the American Water Works Association and Water Environment Federation (AWWA/WEF), New Orleans LA, February 17-21, 2009. •Mastracchio, J.M., “Capital Project Funding: Improving Your Success Rate,” presented at the 26th Annual Greater Buffalo Environmental Conference, New York Water Environment Association, Western Chapter, Buffalo NY, March 18, 2008. •Mastracchio, J.M., et al., “Water Capital Financing, Manual of Practice M29,” workshop presentation at the 126th Annual Conference and Exposition of the American Water Works Asso- ciation (AWWA), Toronto ON, June 23-28, 2007. •Lockridge, R., Mastracchio,J.M., Santos,A., “Maintaining Long Term Financial Health,” Talk of the Towns, pp. 25-26, May/June 2007. Association of Towns of the State of New York. •Mastracchio, J.M., “Economic and Financial Elements of Water Utility Facilities Master Planning,” presented at the Spring Meeting of the American Water Works Association, New York Section, Saratoga Springs NY, April 24-27, 2007. •Mastracchio, J.M., “Budget Forecasting in the New Construction Cost Era - It’s Not as Simple as the ENR Anymore,” presented at the Conference of the United States Society of Dams, Pittsburgh PA, March 7, 2007. •Gangemi, A.N, Mastracchio, J.M., “Dynamic Utility Financial Modeling - A Utility Manager’s Crystal Ball,” presented at the Annual Conference of the New England Water Works Associa- tion, Danvers MA, September 17-20, 2006. •Mastracchio, J.M., “The Next Challenge in Eliminating Sewer Overflows: Who Pays?,” Clearwaters, Vol. 35, p. 26-27, Winter 2005. New York Water Environment Association, Inc. •Lockridge, R.L., Mastracchio, J.M., “Dynamic Financial Modeling for Local Governments,” Proceedings, 91st Annual Conference of the International City/County Management Asso- ciation (ICMA), Minneapolis MN, September 25-28, 2005. •Mastracchio, J.M., “Interactive Financial Modeling: An Effective Tool for Utility Management and Planning,” Proceedings, 68th Annual Conference of the Indiana Water Environment Associ- ation, Indianapolis IN, November 15-17, 2004. •Mastracchio, J.M., “The Use of Financial Modeling to Support Utility Management and Planning,” presented at the 78th Annual Conference of the Ohio Water Environment Associa- tion, Columbus OH, June 21-24, 2004. •Mastracchio, J.M., “Using Financial Models to Establish and Update Water and Sewer Rates,” presented at the Winter Con- ference of the County Commissioners Association of Ohio, Columbus OH, December 1, 2003. 21RAFTELIS City Council Regular Meeting - Page 112 of 268 TECHNICAL SPECIALTIES • Utility cost of service and rate structure studies • Conservation rate studies • Economic feasibility studies • Capital Budgeting Studies • Wastewater rate studies • Capital recovery/Capacity fee studies • Survey research of water and wastewater utility characteristics and rates PROFESSIONAL HISTORY • Raftelis: Manager (2017-present); Senior Consultant (2014-2016) • APTwater, Inc. (Now Ultura): Project Manager (2011-2014) • PBS&J (now ATKINS): Project Manager – Utility Finance (2005-2011) • Earth Tech (now AECOM): Senior Project Manager (2004-2005) • Malcolm Pirnie, Inc. (now ARCADIS): Consultant (2002-2003) • National Parks Conservation Association – Business Plan Initiative: Business Plan Consultant (2000) • U.S. Army Corps of Engineers – New England Division: Project Manager (1995-1999) • Geophex, Limited: Graduate Research Assistant (1994) EDUCATION • Master of Business Administration - University of Southern California (2001) • Master of Science in Environmental Engineering - University of Massachusetts (1995) • Bachelor of Science in Civil Engineering - University of Massachusetts (1994) PROFESSIONALCERTIFICATIONS • Registered Professional Environmental Engineer in Arizona • Series 50 Municipal Advisor Representative PROFESSIONAL MEMBERSHIPS • American Water Works Association er Works Association Steve Gagnon PE (AZ) Project Manager Manager (Raftelis) Mr. Gagnon has 20 years of experience in financial analysis and environmental engi- neering. He has worked for leading engineering consultants as well as the federal government. His broad range of experience includes water and wastewater pricing studies, capacity fees and utility valuations. His financial experience includes water and wastewater rate studies for the City of Redlands, CA, Santa Fe Springs, Hender- son, NV, City of Anaheim, La Habra Heights County Water District, Rowland Water District, Walnut Valley Water District, Sweetwater Authority, Helix Water District and Otay Water District. He has also performed strategic financial analysis of water sourcing alternatives and costing of ground water remediation alternatives, asset inventory and condition assessments, utility performance metrics, earned value analysis. He has also managed the construction and installation of water treatment equipment and oversaw Superfund remediation for the US Army. UTILITY AND WATER RIGHT VALUATIONS EXPERIENCE Blue Plains Wastewater Treatment (DC) Mr. Gagnon is valuing the largest advanced wastewater treatment plant in the world (370 MGD) using several different valuation methods for Metropolitan Washington Council of Governments. The study values capacity rights in a treat- ment plant shared by several users. Valuation methodologies include original cost, reproduction cost, and market comparables. Metro Wastewater Joint Powers Authority (CA) Mr. Gagnon updated a prior valuation study which values treatment capacity in the San Diego Metropolitan Wastewater System. The valuation study considered several different valuation methodologies including the asset approach, prior sale (market comparables); buyer’s avoided cost, seller’s potential future cost and alternative investment value. City of Pico Rivera (CA) Mr. Gagnon is slated to help the City of Pico Rivera value groundwater pumping rights. Groundwater pumping rights will likely be valued using both a market comparables approach and a buyer’s avoided cost approach. OTHER RELEVANT PROJECT EXPERIENCE City of Redlands (CA) Mr. Gagnon updated the City’s water and wastewater rates and development impact fees. The rate study process included workshops with the City’s Utility Advisory Committee in which he presented the basics of rate setting and the financial envi- ronment of the utilities. The interactive workshops solicited input from committee members and staff regarding revenue adjustments and rates. City of Pomona (CA) Mr. Gagnon is currently helping the City establish water, recycled water and waste- 22 CITY OF LYNWOOD City Council Regular Meeting - Page 113 of 268 water rates. He is establishing defensible tiered rates based on the City’s multiple sources of water and use characteristics. He is also establishing pumping charges based on the costs associated with serving water to high elevation customers. The engagement includes working with rate committee members, Staff and council members to ascertain their rate setting goals. It also includes a 10-year finan- cial plan and modeling rates under industry standard reserve targets. Mesa Water District Mesa Water District prides itself on the fact that it is no longer dependent on imported water. Mr. Gagnon helped the District revise their water and recycled water rates in a few months during a fast- paced rate study. The study included over 10 financial plan options for the Board to select from. Olivenhain Municipal Water District (CA) Mr. Gagnon created a drought rate model to help the Olivenhain Municipal Water District (District) develop a drought rate ordi- nance. The model calculated commodity rate adjustments for four drought stages. It allowed for customer voluntary cutbacks in consumption as well as cutbacks due to higher water prices using the price elasticity of water. The model will help ensure the District maintains adequate revenue in times of drought. Mr. Gagnon helped the District update their wastewater rates and developed a customized model for its unique rate structure. The Dis- trict’s residential rates are a flat charge per Equivalent Dwelling Unit (EDU) and the commercial rate structure includes a service charge per EDU and a variable rate based on measured water consumption. Mr. Gagnon also prepared valuation calculations for the system capacity required for update of water and wastewater connection and annexation fees for the District. The analysis showed that the District would benefit by changing capacity fee calculation meth- odologies from a growth method to a combined method, thereby imposing less restrictions on the use of capacity fee revenue. Mr. Gagnon modeled the long-term cost of several different water sources for the District. Options included purchasing treated water, expanding their water treatment plant and purchasing untreated water from the Metropolitan Water District or partnering with other local agencies to desalinate ocean water. The model contained many variable inputs to allow “what-if” scenario analysis. Although purchasing treated water was the least costly option, the authority favored plant expansion due to other benefits such as reliability of water supply. City of Encinitas (San Dieguito Water District, CA) Mr. Gagnon helped the City establish water rates that are based on cost of service principles. Cost of service based rates creates large bill impacts for the agricultural class. Mr. Gagnon worked with City staff and the Board rate setting committee to evaluate rates and explain rate setting basics to the committee and public in a Proposition 218 public hearing. Sweetwater Authority (CA) Mr. Gagnon evaluated water rates, including drought rates, for the Sweetwater Authority in light of recent legal concerns over their cur- rent rate structure. The evaluation includes a cost of service study to clearly demonstrate the nexus between the rate for each single family tier and the associated costs to serve that tier. The study started by soliciting input from Board members regarding their water pricing objectives so that rates could be designed accordingly. Mr. Gagnon concluded the study with presentations to the District Board of Directors and the Public. Encina Wastewater Authority Mr. Gagnon is helping the Authority analyze the Net Present Value of three large capital investments: 1) their co-generation facility, 2) the heat dryer and 3) the fats, oils and greases (FOG) receiving facility that supports Encina’s co-digestion facility operation. For the co-gen facility, the analysis involves calculating the Net Present Value of electricity purchase costs with and without the co-gen facility. The heat dryer analysis involves calculating the equivalent annual cost of operating solely the centrifuge (with the associated disposal cost of sludge) versus operating the heat dryer and its reduced sludge disposal costs. Lastly, he is helping the Authority analyze its options for alternative digester fuels for co-digestion to enhance digester gas production – FOG versus beer waste – based on the tipping fees and associated maintenance costs of each. Hi-Desert Water District Mr. Gagnon is helping the District establish defensible and afforda- ble water rates for a District with a high number of low income residents. The study includes an update of their miscellaneous fees. The District has one main source of water, which limits the rate dif- ferentiation between tiers. The study includes an extensive outreach program to educate customers as to the need for rate adjustments. City of Port Hueneme The City of Port Hueneme has some of the highest water rates in the area due to the amount of capital reinvestment needed to maintain the system. Mr. Gagnon is helping City Council and Staff assess the impacts of their decisions, including capital reinvestment, loan refinancing and fixed charge pricing on customer bills. The study included a rate workshop with City Council to show Council the effects of their decisions. City of Lakewood (CA) Mr. Gagnon helped the City develop cost of service based tiered water rates. Of note, Mr. Gagnon recommended revising the cur- rent practice of providing free water for the first four units of water in single family first tier. To ease the impacts of this change, the City decided to transition the rates over a 5-year period. The study included a full five-year financial plan and a review and recommen- dations on reserve levels. City of Orange (CA) Mr. Gagnon is helping the City update its water rates and rate struc- ture to ensure that rates are based on cost of service principles. The study includes a financial plan to fully fund operational and capital expenses and reserves. Mr. Gagnon also helped the City establish wastewater rates for its sanitation enterprise. The rates were revised to reflect sewer whereas they were previously based on water use. 23RAFTELIS City Council Regular Meeting - Page 114 of 268 Channel Islands Beach Community Services District (CA) Mr. Gagnon helped the District establish equitable water and waste- water rates. Particularly noteworthy in this study was a class of customers that required the District to reserve capacity in the water treatment plant for possible future growth. Mr. Gagnon explained the cost causation based rate for this customer class at Board meet- ings and the Public Hearing. Mr. Gagnon also held special web based workshops with this customer class to explain cost of service principles and the basis for the rates. City of Shasta Lake (CA) The City of Shasta Lake’s water revenue dropped significantly during the recent drought – while their water costs increased due to emergency water purchases from expensive sources. In addition, the City’s infrastructure was over 80 years old which necessitated significant capital expenditures. Mr. Gagnon worked with City staff to develop a water financial plan that fully funded their capital pro- gram, reserves and operational expenses. The financial plan called for a 30% revenue increase in one year. Mr. Gagnon presented the basis for revenue adjustments and rate development at a well-at- tended public hearing at City Hall. Santa Fe Irrigation District (CA) Santa Fe Irrigation District has one of the largest per capita water use rates in the State due to its large lots, many of which have orchards and other agriculture requiring irrigation. Mr. Gagnon worked with City Staff and Board members to establish water cost of service based rates which included a complete restructuring of their fixed charges so that the District could pass through their fixed wholesaler charges. The consumption rates were based on the peaking characteristics of each class. Mr. Gagnon presented at a contentious Public Hearing, in which that rates were adopted, to answer Board and the Public’s questions. Trabuco Canyon Water District (CA) Mr. Gagnon helped the District establish water, wastewater and recycled water rates. The Trabuco Canyon Water District’s revenue plummeted significantly during the recent drought. Mr. Gagnon helped the District established rates, including drought rates, that fully funded operations, capital expenses and reserves. The District previously had a 7-tier rate structure. Mr. Gagnon helped the dis- trict establish a 4-tier rate structure in which the rates were based on the supply costs and peaking costs to serve water in each tier – as required by Proposition 218. The study started with a pricing objectives exercise so that the Board could communicate its most important rate setting goals. Mr. Gagnon presented financial plan options and rate study results and a public hearing. Moulton Niguel Water District (CA) Mr. Gagnon prepared water and wastewater capacity fees and mis- cellaneous fees in June of 2016. The water and wastewater capacity fees were calculated using the buy-in methodology and varied by meter size. The District also decided to implement a water demand offset fee for new water connections based on the premise that the recycled water system offsets potable water use and benefits pota- ble water users. Mr. Gagnon attended Board meetings to help staff explain the rationale and basis for the capacity fees. Mr. Gagnon also helped calculate miscellaneous fees by interview- ing staff to assess the time and effort involved with the fees, benefit burden rates and material charges to properly calculate over three dozen fees for the water and wastewater systems. The deliverable included an excel model with which the District could update the miscellaneous fees in the future. City of Henderson (NV) Mr. Gagnon is creating water and wastewater rate and financial planning models for the City as well as updating their water and sewer system development charges. The models will be used over the next 5 to 10 years not only to calculate water and wastewater rates but also to create yearly financial statements. Rainbow Municipal Water District (CA) Mr. Gagnon created water conservation based sewer rates to complement the Rainbow Municipal Water District’s (District) conservation based water rate structure. These rates will be based on the actual water usage of each customer within the District. In addition, appropriate sewage strengths will be incorporated into the District’s sewer user rates. County of San Diego (CA) Mr. Gagnon prepared integrated financial models for a landmark study for the County of San Diego. The study will not only be updating the sewer user, capacity, and annexation fees for the nine dependent sewer districts but will also include the economic analy- sis of creating one “super sanitation district”. Long-range financial plans will be prepared for all of the districts as well as the super district including 10 years of operational and capital costs. Town of Quartzsite (AZ) Mr. Gagnon performed a third party rate review of a recently com- pleted water and wastewater rate study for the Town of Quartzsite (Town). The Town is concerned with insuring that their winter RV population is paying their fair share of the water and sewer expenses. Town of Parker (AZ) Mr. Gagnon updated the Town of Parker’s (Town) water rates. One of the Town’s main concerns was the fairness and equity of water system cost distribution given the Town’s large population of Native Americans who do not pay sales or utility taxes yet benefit from Town parks and other Town amenities. He also helped the Town establish operating and capital reserves. Walnut Valley Water District (CA) Mr. Gagnon performed the Walnut Valley Water District’s (District) first professional rate study which included updating the rate struc- ture. Mr. Gagnon created a three-tier residential rate structure to help decrease discretionary consumption and ensure the District avoids or reduces water purchase surcharges from the Metropolitan Water District. He presented his findings to District staff and the District’s Board of Directors. 24 CITY OF LYNWOOD City Council Regular Meeting - Page 115 of 268 Fallbrook Public Utility District (CA) With water shortages looming in Southern California, this pro- gressive water and sewer district asked for help creating water conservation-based sewer rates to complement their conservation based water structure. Mr. Gagnon created rates based on the actual water usage of each customer within the Fallbrook Public Utility District (District). In addition, appropriate sewage strengths were incorporated into the District’s sewer user rates. Otay Water District (CA) The Otay Water District (District) performs an update to their capacity and annexation fees every five years. In this update they changed their capacity fee from an incremental fee based on future costs to a combined fee structure using replacement costs less depre- ciation. They are also revised their annexation fee to recover taxes and availability charges paid by existing users who are currently inside the District’s boundaries. In addition, they added a new water supply fee to recover the expansion costs of their water system. This is a new fee that addresses the issue of new development bringing their own water supply or pay for offsets. Mr. Gagnon was also the lead economist on a fast track study to assist the District in adding further conservation incentives into their potable and reclaimed water user rates. Specifically, he added rate blocks into their non-residential and landscaping user rate structures based on specific base extra capacity cost allocations per user class. In addition, he assisted the District in the preparation of a drought/shortage rate structure that overlays their new conservation rate structure. This drought rate structure is based on the guidelines provided by the Metropolitan Water District of Southern California and the San Diego County Water Authority. Rowland Water District (CA) Mr. Gagnon updated the Rowland Water District’s (District) water rates for the second time. The District had several concerns for the most recent study which included a large debt issue for a recycled water system as well as staff increases and wholesale water rate increases. The model helped the district size its debt issue by per- forming a rate sensitivity analysis to the size of the debt issue. City of Poway (CA) Mr. Gagnon completely rebuilt the City of Poway’s water and waste- water rate models to reflect the latest rate setting practices. Helix Water District (CA) Mr. Gagnon created an economic model to add life-line and a water waster tier to the Helix Water District’s (District) three-tier rate structure. In addition, budget-based water rates were created for all irrigation accounts. The District is transitioning slowly to budget- based rates due to staffing limitations. In 2010 they will implement budget-based rates for all commercial accounts. Mr. Gagnon also performed all of the economic modeling in the preparation of the District’s first Capacity Fee Study. The capacity fee was designed to collect a buy-in portion based on replacement costs of the District’s current water system and the incremental cost of adding a new water supply, the El Monte Valley Ground Water Recharge project. City of Anaheim (CA) Mr. Gagnon prepared a commercial and residential wastewater rate study for the City of Anaheim (City). The proposed rate structure was based on water consumption to replace the antiquated structure based on the number of toilets. Proper water use and wastewater return to sewer analysis is required to ensure proper revenue gen- eration for the City. City of Coronado (CA) Mr. Gagnon is helping restructure the City of Coronado’s wastewater rates from a flat parcel-based fee for residential users to one with a consumption-based charge and a fixed charge. City of Lemon Grove (CA) Mr. Gagnon helped update the commercial and residential wastewa- ter rates for the City of Lemon Grove. The rate structure included 20 different user classes for residential, commercial, and institutional customers. Western Municipal Water District (CA) Mr. Gagnon prepared a long-range financial plan to help ensure the Western Municipal Water District’s (District) financial health. Based on the District’s five-year CIP, inflationary water rate adjustments, and reserve policies, the plan showed that a debt issue was needed to execute the CIP and maintain adequate reserves. Julian and Pine Valley Sanitation Districts (CA) Mr. Gagnon updated the wastewater rates and connection fees for both sanitation districts. The wastewater fees had not been updated for several years in one district and over 15 years in the other neces- sitating large rate increases. He developed a few different scenarios which included postponing CIP projects or lowering reserve bal- ances, to ease ratepayers into higher rates. San Antonio Water System (TX) Mr. Gagnon prepared a sewer impact fee economic model and study for the City of San Antonio. This included a valuation of the system’s facilities using several asset based approaches. Ultimately the total net book value without depreciation was selected as the basis for the valuation of the System’s assets. In addition, an equity residual model was prepared that included the allocation of the present value of past and future debt service payments. The study also analyzed a number of impact fee structures to determine the most fair and equitable fee. La Habra Heights County Water District (CA) Mr. Gagnon assisted with the update in water user rates, capacity charges, and long-range financial plan for the La Habra Heights County Water District (District). The 2001 study set the District’s user rates for five years and expired in 2005. The District had recently completed an updated Water Master Plan and wished to incorporate the new cost of replacement capital facilities for the next ten years into their long-range financial plan and user rates. 25RAFTELIS City Council Regular Meeting - Page 116 of 268 City of La Habra (CA) Mr. Gagnon helped prepare the City of La Habra’s (City) first professional sewer user rate study. This study followed industry standards and an EPA approved rate structure. The City plans to create a formal enterprise fund for their sewer utility to properly finance their sewer operations and maintenance. He developed the long-range financial plan modeled year-end cash reserves to ensure execution of the City’s $21 million capital improvement program and to fund operations and maintenance. City of Webster (TX) Mr. Gagnon is constructing a stormwater model for the City of Web- ster (City). The rates are based on the impervious surface of each parcel. The City plans using water meters to bill customers. City of Norman (OK) Mr. Gagnon is constructing a stormwater rate model for the City of Norman. The model is constructed in several different ways to allow the city council to choose from alternative rate structures, includ- ing the contentious issue of whether or not Oklahoma University, which owns large parcels of impervious surface area, will support the stormwater utility. Boxelder County (CO) Mr. Gagnon assisted Boxelder County (County) in the determination of how they will finance their required stormwater improvements. They plan to create a stormwater utility through diverse funding sources including impact and user fees, a community financing district, and grants and loans. The goal of this study was to identify and size a system of improvements which will achieve the greatest defined economic benefit (both local and regional) per dollar of cost, based on the 100-year floodplain extents. City of Fullerton (CA) Mr. Gagnon conducted a field audit to determine appropriate return to sewer flows as well as fats, oils and greases surcharge rates for the top 50 industrial water customers in the City of Fullerton. OTHER FINANCIAL AND MANAGEMENT STUDIES Town of Parker (AZ) Mr. Gagnon is performing a benchmarking analysis of the Town of Parker’s (Town) water, parks and recreation and streets depart- ments due to efficiency concerns. The study will compare the Town’s cost efficiency with other small towns. Marine Corps Base Camp Pendleton (CA) Mr. Gagnon led an asset inventory and condition assessment of the water and wastewater systems on Marine Corps Base Camp Pend- leton. The inventory included field visits and literature reviews to document and describe the extent and condition of all utility assets. Asset data was compiled in a database and linked to GIS mapping. Olivenhain Municipal Water District (CA) Mr. Gagnon developed an economic model that evaluates the cost benefit analysis of four different water supply options including desalinization, increased use of recycled water, and expansion of their existing water treatment plant using membrane technology. Proposed funding levels were prepared for the long-range finan- cial plan to match projects against the revenue levels necessary to support them. Confidential Fortune 500 Aerospace Corporation (CA) Mr. Gagnon created an excel based financial model to cost and budget one of the largest corporate environmental liabilities – a nine-mile long plume of rocket fuel-related contamination – under- lying several cities in southern California. Remediation strategies were constantly changing and, thus, the model simulated costs for numerous remediation alternatives. The model also allowed for monthly and yearly budgeting and total clean-up expenditures. Earth Tech (CA) Mr. Gagnon developed an Operation Excellence Plan to ensure client satisfaction on the execution of a multimillion dollar Master Services Agreement with a Fortune 500 Aerospace Corporation. The plan provided guidance in many areas including QA/QC, client feedback, staff allocation, etc. The plan also included perfor- mance measures to evaluate client satisfaction, program success, and failures. Otay Water District (CA) Mr. Gagnon assisted in facilitating performance metric workshops with the Otay Water District management staff. The workshops discussed performance metric basics, analyzed dozens of perfor- mance metrics, how to calculate them, and eventually helped staff narrow down the metrics they believed were best for their utility. Keweenaw National Historical Park, National Park Service (MI) Mr. Gagnon coauthored a business plan submitted to the U.S. Congress to seek additional funding to expand a national park in Michigan. The business plan included a historical cost accounting analysis of prior fund use and projected future fund needs. U.S. Army Sudbury Annex Superfund Site (MA) Mr. Gagnon was the Project Manager for the remediation and real estate transfer of a 2,000-acre army ammunition depot and research installation in central Massachusetts. Mr. Gagnon oversaw project funds, environmental studies, and construction contracts with consulting firms and partnered with the U.S. EPA to determine clean-up goals and strategies. 26 CITY OF LYNWOOD City Council Regular Meeting - Page 117 of 268 SPECIALTIES • Water and Drought rate design • Water budget rate structures • Utility cost of service • Data analysis • Environmental Policy Analysis PROFESSIONAL HISTORY • Raftelis: Consultant (2014-2015); Senior Consultant (2016-present) • Turner New Zealand, Inc.: Director of Operations (2009-2012); Accounting Manager (2007-2009) • Lesley, Thomas, Schwarz & Postma, Inc.: Staff Accountant (2007) EDUCATION • Master of Environmental Management – Duke University (2014) • Bachelor of Arts in Business- Economics and History – University of California, Santa Barbara (2006) Kevin Kostiuk Staff Consultant Senior Consultant (Raftelis) Mr. Kostiuk has a background in economics and accounting and possesses extensive analytical skills. His expertise lies in financial accounting, analysis of water supply res- ervoir operations and management, environmental policy, and water quality trading programs; as well as United States Army Corps of Engineers (USACE) water supply and flood control policy. Mr. Kostiuk is an active member of the American Water Works Association (AWWA) Young Professionals and the Young Professionals Summit Com- mittees in conjunction with the AWWA Utility Management Conference (UMC). He authored an article on potable reuse in Journal AWWA discussing the treatment, financ- ing structures, and pricing of treated water at advanced purification treatment plants. Most recently Mr. Kostiuk coauthored an article on proactive financial planning in times of drought for California Society of Municipal Finance Officers (CSMFO) Magazine. RELEVANT PROJECT EXPERIENCE Monterey County Water Resources Agency (CA) – New Source Water Evaluation In 2017 Mr. Kostiuk performed a cost analysis and evaluation of new source waters from recycled water for its coastal agricultural users. Recycled water production from the several sources will require new infrastructure, treatment, and maintenance. Mr. Kostiuk built an electronic model which incorporated different climate scenarios, costs of capital, operat- ing, maintenance, and treatment, and the water available from all sources under different weather conditions and water rights. The project is ongoing with a series of meetings with the Agency’s agricultural customers having been completed in the fall and winter of 2017 and 2018. Borrego Water District (CA) Raftelis contracted with the District to evaluate the impact of county growth projections as well as the Sustainable Groundwater Management Act (SGMA) of 2014. Mr. Kostiuk utilized the existing financial plan model, water supply analyses provided by other District consultants, and assumptions on land acquisitions to determine the effect of SGMA on long term water rates. The Borrego Groundwater Basin is critically over drafted and users will need to decrease water production significantly to achieve sustainable yield by 2040. This will require the District to reduce per capita water use and acquire production credits within the basin by fallowing agricultural land. Mr. Kostiuk estimated water rates in each year through 2040 incorporating assumptions on groundwater production, market values of land in the basin, debt financing, and water source alternatives. In 2017 Mr. Kostiuk examined the affordability of water rates charged to the District’s customers. The assessment analyzed both existing and future rates and affordability under the SGMA scenario identified in 2016. The affordability assessment relied upon the SGMA Impact Assessment and corresponding demand projections, basin yield assumptions, financing assumptions, and projected rates to the year 2040. The project allowed the Dis- trict to understand affordability of existing rates and water allocation and to estimate the affordability impacts of SGMA compliance in the Borrego Groundwater Basin over the long term. Raftelis and Mr. Kostiuk are currently engaged with the District and the County of San Diego to assess the costs of implementing the Groundwater Sustainability Plan (GSP) as RAFTELIS 27 City Council Regular Meeting - Page 118 of 268 part of SGMA. Mr. Kostiuk is leading the project for Raftelis which includes developing the appropriate approach and methodology for developing GSA charges, evaluating the options for funding mech- anisms, advising on other charges and penalties, and assisting in designing a water market for the groundwater basin users. Soquel Creek Water District (CA) The Soquel Creek Water District (SqCWD) contracted with Raft- elis in 2017 to evaluate a novel rate structure for its ratepayers. Mr. Kostiuk participated in several workshops with the District’s citizen Water Rates Advisory Committee and Board of Directors to develop of policy framework for the rate structure and conduct pricing objectives exercises with both groups. Mr. Kostiuk developed a report for the District which will inform the rate design in 2018. Mr. Kostiuk is the assistant project manager on the current financial planning and rate study for the District which will develop rates for the conceptual rate structure evaluated in 2017. Crescenta Valley Water District (CA) Mr. Kostiuk developed a combined water and sewer financial plan and rate model for the District in 2016. The cost of service and rate study included several workshops with the District Board which culminated in structural changes to the District’s existing water and sewer rate structures. In addition to the tiered water rate structure, which was ultimately adopted, Mr. Kostiuk developed a water budget rate model for evaluation by District staff and the District Board. Prior to the cost of service and rate study, Mr. Kostiuk performed an economic analysis for the District to determine the feasibility of offsetting imported water supply with the production of local groundwater. Mr. Kostiuk created a customized model for the Dis- trict to use under different scenarios of capital requirements, lease options, and contract lengths. As part of the study, he reviewed the District’s prior consultant’s work, determined internal rate of returns, calculated the net present value of district savings, and determined the cost at which the District should lease water rights for groundwater production. East Valley Water District (CA) Raftelis contracted with East Valley Water District in 2014 to develop budget based rates to replace the District’s existing uniform rate structure. Mr. Kostiuk assisted the District with design and imple- mentation of budget-based water rates for their 23,000 accounts including residential, commercial and irrigation customers. The study included creation of a long-term financial plan and full cost of service study for the water enterprise. Mr. Kostiuk developed the 10 year financial plan model, rate model, and water budget model for the District. Mr. Kostiuk worked closely with the District’s finance, IT, and, bill- ing departments in the early stages to analyze customer account level data including monthly use. He also worked with the District’s GIS and other outside consultants to develop the water budget model using irrigable landscape area, customer class, assessor parcel number (APN), etc. for construction of indoor and outdoor alloca- tions, or budgets. The project incorporated significant public outreach whereby Raft- elis led meetings with ratepayers to receive input, provide Study updates, and answer questions of the public. The ratepayer meetings assisted adoption of the new rate structure and implementation. The rate structure that the Board adopted allows for the most precise, scientific and equitable design of rate structures, tailored specifically to an individual account. Goleta Water District (CA) Mr. Kostiuk completed a full water cost of service study for the District which included design of inclining tiered rates for their single-family residential class, as well as agricultural rates for two classes. Complexities in customer classes’ access to District water supplies, interruptibility during times of drought, and benefit (or lack thereof) from treatment made the analysis unique and challeng- ing. The study included development of a long term financial plan model, rate model, and corresponding bill impacts. To achieve the District’s demand reduction targets as outlined in their Drought Management Plan, the District wished to explore drought rates/drought surcharges to curb demand. Ultimately, Mr. Kostiuk developed three options of revenue neutral drought surcharges for the Board’s consideration. These various options ranged from targeted surcharges on an inter and intra-class basis, to a surcharge applied to non-drought commodity rates, to a uniform commodity surcharge irrespective of customer class or use. The pro- posed rates and drought surcharges were adopted and implemented July 1, 2015. City of Redlands (CA) Mr. Kostiuk updated prior financial plans developed by Raftelis for the City for their water and sewer enterprises. The update included building in more flexibility to the model for ease of use and for future updates, as well as, making the model dashboards more user friendly. The state-wide drought in California called for a mandatory 25% reduction for all water service agencies in the state. The City’s target was to reduce residential consumption by 35%. Mr. Kostiuk assisted the City in design and implementation of drought surcharges to achieve a 35% reduction and to recover lost revenue from reduced water sales. Additional work for the City included updating the City’s Storm Drain Impact Fee and miscellaneous fee for NPDES inspections as part of the MS4 permit requirement. The storm drain fee had not been reevaluated in 20 years. Additionally, the City had recently completed a Storm Drain Master Plan which called for $83 million in improvements to system deficiencies. Mr. Kostiuk developed a methodology to retain the existing impact fee structure while updat- ing the fee paid by different land use classes. In 2015 and 2016 Mr. Kostiuk developed a water budget rate model for the City to evaluate a new rate structure. The model integrated with the existing water financial plan model and designed parallel water budget rates for consideration by City staff and the Council. 28 CITY OF LYNWOOD City Council Regular Meeting - Page 119 of 268 City of Camarillo (CA) Raftelis has provided rate consulting services to the City for the past seven years with Mr. Kostiuk serving as lead analyst the past three years. In the current rate cycle Mr. Kostiuk serves as Project Manager. The City adopts rates on a two year cycle and the most recent Study included rebuilding long term financial plan models, revising the wastewater utility’s rate structure, and performing a cost of service analysis for the sewer utility. Mr. Kostiuk has made pres- entations to the City Manager, City’s Utility Committee, and City Council in consecutive years. Mr. Kostiuk successfully presented rates to City Council in December 2016 and November 2017. During the height of the most recent state-wide drought, the City contracted with Raftelis to evaluate emergency drought rates as a conservation and revenue recovery tool. Mr. Kostiuk adapted the existing financial plan model and developed multiple scenarios based upon the City’s water supply condition stages. Mr. Kos- tiuk developed drought rates utilizing the City’s financial plan at each stage and estimating water reductions. The rates were not adopted prior to the end of the state-wide drought however the drought tool is available for quick implementation should drought conditions return. City of Tustin (CA) Raftelis contracted with the City of Tustin to develop a ten-year financial plan and evaluate a budget-based rate structure for its customers. Mr. Kostiuk worked extensively with City staff, Raftelis’ data services team, and outside consultants of the City to develop the water budget allocation and rate model for the City’s approxi- mately 14,000 customer accounts. As part of the model build, data from GIS consultants had to be organized and validated for each of the City customers’ parcels. Raftelis’ data services team worked internally to ensure matches between assessor’s data and GIS data for integration to the water budget model. Rates and customer impacts have been presented to City staff and a public outreach campaign is being devised in anticipation of the council workshop. The project is ongoing. Placer County Water Agency (CA) In 2015 Placer County Water Agency (PCWA) contracted with Raft- elis to evaluate its water system. PCWA provides retail and wholesale water service to treated water and raw water users throughout west- ern Placer County. In Phase I of the project Mr. Kostiuk evaluated the current system’s four service zones and numerous service classes and customer classes. Raftelis then provided recommendations to consolidate and simplify the water system organization and struc- ture. In Phase II Raftelis performed a cost allocation study between the four proposed classes of service to identify the cost of providing service to these distinct users. Phase III consisted of performing cost of service analyses for PCWA’s four service classes and developing corresponding rates. The Study was completed in October 2017 with new organization, rate structures, and associated rates implemented January 1, 2018. Additional to the water system evaluation and cost of service study, Mr. Kostiuk developed a water budget model for PCWA’s internal use. The water budget model allows PCWA to examine their single family residential (SFR) customer’s usage patterns relative to efficiency standards, climate, and account level char- acteristics. The model will aid in water management and give insight into water demand pattern changes with the Agency’s new rate structure and rates. Mammoth Community Water District (CA) Raftelis provided the District with a 10 year financial plan model for both the water and wastewater enterprises, as well as perform- ing a cost of service analysis for the water enterprise. The district carries out operating and capital activities that are indirectly assigned to the two enterprises. Mr. Kostiuk worked with District staff to carry out a cost allocation study to distribute adminis- trative costs appropriately. Raftelis recommended changes to the water rate structure as part of the Study to simplify the rates and make them more legally defensible. The study took place at the height of the statewide drought and as part of the project Mr. Kostiuk developed drought rates for the District to implement in times of mandatory conservation or water supply shortage. Being an agency with a large seasonal population Raftelis worked with staff to determine the most appropriate and effective means of charging the drought rates. Mr. Kostiuk designed drought rates for each stage of the District’s water conservation plan, effective on the meter-based fixed charge of a customer’s bill. This ensured that every connection in the water system shared in the burden caused by the drought, irrespective of water use. Raftelis also evaluated existing capacity fees for both enterprises. This task is ongoing. The water rates, wastewater rates, and drought rates were adopted and implemented January 2016. Summerland Sanitary District (CA) Raftelis contracted with the District in 2016 to perform a cost of service and rate study for wastewater services. The study included a 10 year financial plan model, cost of service analysis, and review of the existing equivalency definitions for the District’s user classes. Additional work included adoption of a formal financial reserves policy to ensure long term fiscal health as well as updates and addi- tions to the District’s miscellaneous fee schedule. Mr. Kostiuk served as Project Manager and Lead Analyst for the project and held several meetings with District staff, the Finance Committee, and the Board of Directors. Five years of rates were authorized in December 2017. City of Buenaventura (Ventura) Raftelis developed long-range financial plans so that the water and wastewater utilities could be financially stable and save costs in the long run. Raftelis also assisted the City with developing different water and wastewater rate alternatives with various scenarios based upon estimated water sales and capital improvement plan (CIP) funding. The study is being conducted with several meetings and input from stakeholders comprised of customers within the City. Raftelis educates the Water Commission on the basics of rates, cost allocations, and rate design to obtain their buy-in through the use of the dashboards in the rate models that were developed. This allows us to demonstrate the impacts of various revenue adjustments on the 29RAFTELIS City Council Regular Meeting - Page 120 of 268 long-term financial stability of the enterprises. As of January 2018 the studies are ongoing. City of Riverside (CA) Mr. Kostiuk completed a study for the City of Riverside (City) to determine the value of an elevation fee credit for present and future customers in a special district. The project required calculation of asset replacement values for infrastructure serving the special district, specific to booster capacity, and within the context of a his- torical assessment. The findings from the study were used to defend the City’s move to assess its elevation fee schedule. City of Simi Valley (CA) The City had last raised sewer rates in fiscal year 2008-2009 and was facing a backlog of sewer system improvements and repair and replacement. Mr. Kostiuk updated the existing sewer financial plan with recent data, as well as updated the cost of service analysis. As part of the study, tier definitions were changed for non-residen- tial customers to reduce the base charge on small users without impacting revenue recovery. Working with City staff, and with pres- entations to City management, Raftelis assisted in getting Council authorization for proposition 218 notices of a rate increase to the City’s customers. The revenue increases will allow the City to commence the public works department’s capital improvement schedule while maintain- ing reserve funds at target levels. City of Henderson (NV) Mr. Kostiuk created water and wastewater rate and financial plan- ning models for the City as well as updated their water and sewer system development charges. The project created a combined model for the water and sewer enterprises which incorporated finance department reporting tools. The combined model allows the utility (water and sewer) to be viewed as a one, with impacts and reporting available to the user. The models will be used over the next 10 years to calculate water and wastewater rates as well as to create annual financial statements. City of Corona (CA) Mr. Kostiuk assisted the City in updating its financial plans for the water and reclaimed water enterprises. The study included per- forming cost of service analyses for both utilities and updating the water budget rate structure. In addition, Mr. Kostiuk developed a framework and corresponding rates for contract reclaimed water customers. City of Raleigh Public Utilities Department- American Rivers (NC) Mr. Kostiuk served as project leader for a study of alternatives to meet Raleigh’s long term water supply shortfall. The project examined four options in extending the life of the existing federal reservoir, thereby postponing capital expenditures on a new raw water supply. Results were delivered to city staff, their consultants and the United States Army Corps of Engineers. Lower Cape Fear Water Quality Trading Program – The Nature Conservancy (NC) To reduce nutrient loading and decrease utility costs, the Nature Conservancy proposed a Water Fund to improve water quality through improved agricultural practices on private landholdings in the watershed. Mr. Kostiuk was in charge of researching compara- ble programs and providing options for a financial mechanism and governance approach between various stakeholders in the region including utilities, agriculture, environmental organizations and community groups. OTHER RELEVANT PROJECT EXPERIENCE •Elsinore Valley Municipal Water District – Drought Surcharge Study •City of San Jose – Water Cost of Service and Rate Study •City of Torrance – Wastewater Cost of Service and Rate Study •Triunfo Sanitation District – Water Rate Study •La Canada Irrigation District – Water Cost of Service and Rate Study •City of Lancaster – Wastewater Cost of Service Study 30 CITY OF LYNWOOD City Council Regular Meeting - Page 121 of 268 SPECIALTIES • Environmental Economic and Policy Analysis • Data Collection and Analysis • Financial Modeling • Proposition 218 Noticing • Public Outreach PROFESSIONAL HISTORY • Raftelis Financial Consultants, Inc.: Consultant (2015-present) • CSI Capital Management, Inc.: Tax Clerk (2007-2011) • RWR Homes, Inc.: Land Acquisitions Coordinator (2004- 2006) EDUCATION • Master of Environmental Management – Duke University (2015) • Bachelor of Arts in Business Economics and German Studies – University of California, Santa Barbara (2003) Corrine Schrall Staff Consultant Consultant (Raftelis) Ms. Schrall’s expertise lies in complex data analysis, project management, and environmental law and policy. She is an experienced financial modeler, conducting complex surveys; building budgets and financial plans; developing water and wastewater costs of service and rates; and establishing connection and capacity fees. In addition, she is a strong technical writer and has built numerous presentations, reports, and public outreach materials for diverse audiences. She has also contributed to both the 2015 and 2017 AWWA California-Nevada Rate Survey. RELEVANT PROJECT EXPERIENCE Alameda County Water District (CA) The District was evaluating its late fee assessment methodology. Ms. Schrall conducted an analysis of five separate late fee cost allocation methods. This allowed the District to examine the best course of action in addressing its late payments that balanced fair assessment of late fees while adequately encouraging timely payment. City of Atwater (CA) Ms. Schrall conducted the water and sewer rate analyses for the City of Atwater. The City is in the process of converting to metered water service. Both the water and sewer analyses needed to account for this mix of metered and unmetered customers. In addition, the City provides contracted sewer service to three large customers, which needed to be incorporated into the study. The analysis resulted in condensed water and sewer rate structures, simplifying the management of rate revenue. Borrego Water District (CA) The District needed assistance in preparing its groundwater sustainability plan. Ms. Schrall evaluated the allocation of groundwater costs across three consumer types. She examined them under three different methodologies. She then developed a user-friendly model in order to allow the District to fully assess the costs and benefits associated with each of the options the District was considering. The District was able to evaluate their groundwater cost allocations to fairly balance them across the consumer types and determine which methodology best fit the unique characteristics of the District. City of Calgary (CANADA) Ms. Schrall worked with the City of Calgary as part of a larger team advising the City on water, wastewater, and stormwater matters. Ms. Schrall conducted a large benchmarking analysis of these services across comparable cities in both Canada and the United States. She examined budgets, affordability, rate structures, wastewater strength billing structures, infrastructure expenditures, stormwater cost recovery, low impact development reward practices, and con- siderations for special/unique customers. The benchmarking study culminated in two separate reports, one on stormwater practices and the second on water and wastewater practices. Both reports included detailed information of policy, regulatory, and system need considerations in order to allow the City a thorough but clear understanding of how to best develop its own policies and rates. City of Camarillo (CA) Ms. Schrall assisted in the preparation of the 2015 water, wastewater, and recycled water rate study report for the City of Camarillo. In this report, she provided an analysis of the rate structures and the reasoning for them. 31RAFTELIS City Council Regular Meeting - Page 122 of 268 El Toro Water District (CA) The District has worked with Raftelis for several years. In 2016 and 2018, Ms. Schrall prepared the financial plan updates and rate analyses for the District’s water, recycled water, and wastewater services. In 2016, Ms. Schrall also calculated its demand offset fee and surveyed neighboring water agencies to provide the District information on size and type of assessments local agencies have implemented. City of Hollister (CA) Ms. Schrall worked with the City to prepare and mail its Proposi- tion 218 notice. She worked proactively to assist the City through each step of the process, from developing the notice alongside Raftelis’ Marketing team to working with a vendor to print and mail all notices in advance of the 45-day deadline. The notice was designed to convey the purpose of the notice, the time and location of the hearing, and clear instructions on submitting a protest in an easy to follow document. Irvine Ranch Water District (CA) The District engaged Raftelis to conduct a cost of service study and develop Fats, Oils, and Grease Program fees compliant with the requirements of Proposition 26. Ms. Schrall, along with Ms. Khanh Phan, worked with the District to identify the tasks conducted by the District for the program in direct service to its customers. They worked with the District to construct a framework that established a nexus between these services and the relevant customer classes. Once this framework was defined, Ms. Schrall conducted a cost of service analysis and developed a fee calculator. She created individ- ual calculators based on each fee’s included costs and determining whether the service is best assessed as a fee or a charge. After conducting the analysis, Ms. Schrall prepared an administrative report that detailed the development of the framework as well as the rationale and calculation of each fee. La Habra Heights County Water District (CA) Raftelis conducted a water rate study for the District in 2012, and the District wanted to update its financial plan and resulting rates. The financial plan projected the District’s revenue requirements, incor- porating the variations of costs associated with its different water supplies in addition to the different revenue streams that the District has. The update provided the District with recommended revenue adjustments for the next five years so they could adjust their rates accordingly and meet the District’s projected revenue requirements. La Puente Valley County Water District (CA) The District request that Raftelis update its special fees and charges. Ms. Schrall began her analysis by examining how the District orig- inally calculated its charges and worked with the District to assess whether these charges were sufficient for the services the District provides. She then developed a fee calculator that allowed the Dis- trict to customize each fee or charge based on specific materials and supplies, vehicles and equipment, and third-party costs. She also provided the District the ability to asses share of salaries and benefits based on per hour or per minute rates. Las Virgenes Municipal Water District (CA) The District engaged Raftelis to update the capacity fees for its water, recycled water, and wastewater utilities as its previous capacity fee analysis was conducted in 2004. Ms. Schrall served as lead consultant, determining the appropriate methodologies for deriving the capacity fees for each utility. In her analysis, she assessed that the District’s existing systems and plans for serving the area through build-out warranted the use of a hybrid approach. She examined the value of their current assets, outstanding debt obligations, and reserves to first develop buy in components for all services. She then examined the District’s plans to accommo- date expansion of their services to new customers and developed incremental an incremental water fee component to ensure that new development contributed to future expansion projects to be constructed for their benefit. Los Alamos Community Services District (CA) The District commissioned Raftelis to develop financial plans and cost of service studies for the District’s water and wastewater ser- vices as well as a capacity fee study for both enterprises. Ms. Schrall developed two separate cost of service models for the District. Ms. Schrall first developed the financial plan, considering costs such as insurance, legal fees, and labor. As a result of the financial analysis, Raftelis condensed the District’s customer classes for both services to improve ease of management and ensure equitability in assess- ment of rates. In addition, she incorporated a flexible CIP analysis so the client could review different scenarios as they project future needs through build-out. County of Los Angeles (CA) The County of Los Angeles is currently examining the possibility of developing stormwater fees. Ms. Schrall conducted an analysis of stormwater assessments since the passage of Proposition 218. The benchmarking portion of this analysis included not only iden- tifying if they charge a tax or fee, but also the basis of the charge (impermeable surface area, flat assessment, parcel factor, etc.), and how they adopted the assessments. The survey also compiled the estimated annual revenue from each agency’s stormwater assess- ment as well as any exempt customers or customer classes. Finally, she developed case studies on similar or nearby agencies to provide the County a deeper understanding behind policy decisions and successes/challenges. City of Malibu (CA) The City of Malibu was developing a new wastewater and recycled water system to replace the independent septic systems currently used by residential and commercial customers. The City engaged Raftelis to develop rates and a rate structure that were fair and equitable for all customers in Phase 1 of the project. Ms. Schrall first developed a budget for the City by reviewing the City’s con- tract with the operator and by analyzing the budgets of similar agencies and reviewing expenses such as labor, legal, and utili- ties. Next, Raftelis developed flow-based rates that created parity between the different customer parcels in Phase 1. Ms. Schrall developed the presentations for Raftelis’ public outreach with the 32 CITY OF LYNWOOD City Council Regular Meeting - Page 123 of 268 Phase 1 stakeholders, the City’s Public Works Commission, and City Council. In addition, she developed the Proposition 218 notice and wrote the study report outlining the derivation of the budget and resulting rate structure for both the wastewater and recycled water utilities. Currently, Ms. Schrall is guiding the City through the direct assessment submission procedure with the County of Los Angeles so that the City may assess its Phase 1 wastewater charges on parcel tax bills. She is ensuring the filing of all necessary documents and coordinating with both City and County staff in advance of the August 2018 deadline. City of Orange (CA) Ms. Schrall conducted the cost of service studies for the City’s water and sanitation services. In conducting the analysis for the sanita- tion system, she assessed the cash flows of the different services the City provides. Rates were constructed based on In addition, she reviewed budgeted expenses such as labor and electricity. Ms. Schrall prepared multiple rate structure options, including dif- ferent uniform and tiered rate configurations, for each service to enable the District to determine which structures best served the needs of these services and fairly and equitably distributed costs across customer classes. In addition, she conducted a 33-city water rate survey in order to provide the City with an understanding of how their proposed and current rates compared to neighboring municipalities and agencies. Placer County Water Authority (CA) The Authority engaged Raftelis to conduct a cost of service study. The District encompasses several zones with multiple water sources and varied topography requiring different pumping demands. In addition, the District covers a diverse customer base, from large and small scale agriculture to suburban development. The complexity of the system results in large data sets with several interconnected components. Ms. Schrall analyzed and condensed these large data sets for implementation in the client’s developing water cost of service model. In addition, she reviewed client water supply agreements in order to ensure the study accurately reflected agreed upon service revenues. San Elijo Joint Powers Authority (CA) The Authority originally contracted with Raftelis to conduct a reclaimed water rate study in 2014. Ms. Schrall developed an updated model for the Authority to integrate new changes to the Authority’s financial plan, with changes to the contracted rates with customers. San Dieguito Water District (CA) Ms. Schrall is currently developing a financial plan update to the 2016 study (also conducted by Raftelis) and proposed rate increases for FY 2019 – FY 2020. The District is also integrating temporary changes in its water supply mix, affecting costs. The current analysis is sensitive to these variations to ensure that the rate adjustments meet the District’s needs in addition to different demand scenarios. City of Sonoma (CA) Ms. Schrall guided the City of Sonoma through the Proposition 218 noticing process. She prepared a notice that clearly conveyed all the necessary information under the City’s requirement that the text be reader friendly to diverse audiences. Ms. Schrall then worked with Raftelis’ Marketing Department to convert this text to an easy to follow notice, highlighting the date and location of the public hearing as well as instructions on submitting a protest or comments. She then coordinated the timely mailing of over 80,000 notices with the City and an outside vendor over 45 days in advance of the hearing. Stanford University (CA) Stanford University engaged Raftelis to conduct a water and sewer rate structure study. The University was considering alternative rate structures for both services, including the incorporation of a fixed rate. Ms. Schrall surveyed other member agencies within the Bay Area Water Supply & Conservation Agency for a number of factors defining their rate structures, such as variable rate structure and the inclusion of a fixed charge. She also prepared customized bill impacts for specific Stanford customers based on the rates of the different surveyed agencies in order to give the University an understanding of how their bills align with these neighboring agencies. As part of this analysis, Ms. Schrall examined the ratio of the fixed to variable charges in order to determine how much neighbor agencies were relying on their fixed charges for revenue. She also prepared presentations and memoranda for diverse audi- ences with in the University to encourage a shared understanding and support across different stakeholder types. City of Tustin (CA) The City of Tustin was considering exercising its option to purchase water from two wells Irvine Ranch Water District was returning to production. The City wanted to understand if the option would be an appropriate addition to the City’s water supply from both economic and water supply stability perspectives. Ms. Schrall conducted the analysis, examining the costs and benefits of the option in comparison to the City’s current supplies. This analysis also projected the expected increase in costs associated with this option in comparison to other supplies. Yorba Linda Water District (CA) The District has worked with Raftelis for several years and requested that Raftelis develop sewer cleaning fees in 2018. Ms. Schrall built a fee calculator in Microsoft Excel to define cost categories and options, including staff rates as well as vehicle, material, equipment and other costs. The model provided a focused format for assessing the costs incurred by the District in performing the proposed tasks, then calculated a rate or charge as appropriate to the task. The model can be updated by staff if and when these costs change. Yuima Municipal Water District (CA) The District engaged Raftelis to develop financial plans for its two service areas, sound and sufficient reserve fund targets, and develop proposed water rates. The District serves a primarily agricultural customer base along with some residential and com- 33RAFTELIS City Council Regular Meeting - Page 124 of 268 mercial customers in the Pauma Valley. It provides these customers with interruptible and uninterruptible service as well as serving six mutual water companies. The financial plan analysis revealed that current rates were not sufficient to meet the District’s long- term expenses and healthy reserves for either service area. Raftelis worked with the District to examine multiple rate scenarios and revenue adjustments in order to meet its expenses. OTHER RELEVANT PROJECT EXPERIENCE •Castaic Lake Water Agency (CA) - WaterCapacity Fee Study •City of Camarillo (CA) – Water, Recycled Water, and Wastewa- ter Rate Study •El Toro Water District (CA) – Water, Recycled Water, and Waste- water Rate Study, Demand Offset Fee Survey •La Habra Heights County Water District (CA) – Water Rate Study •Las Virgenes Municipal Water District (CA) - Water, Recycled Water, and Wastewater Capacity Fee Study •Los Alamos Community Services District (CA) - Water and Wastewater Studies •Rancho California Water District (CA) – Capacity Fee Study •Sacramento Area Sewer District/Sacramento Regional County Sanitation District – Joint Management Study •City of San Diego (CA) – Wastewater Cost of Service Study •San Elijo Joint Powers Authority (CA) – Reclaimed Water Rate Study •Scotts Valley Water District – Water and Recycled Water Rate Study •Summerland Sanitary District – Wastewater Rate Study •City of Thousand Oaks (CA) – Water and Wastewater Rate Study •Tustin (CA) – Well Option Analysis •City of Vista and Buena Sanitation District - Wastewater Rate Study and Capacity Rental Charge Analysis; Wastewater Rate Public Outreach Materials •West Basin Municipal Water District (CA) - Wholesale Water Rate STudy 34 CITY OF LYNWOOD City Council Regular Meeting - Page 125 of 268 SPECIALTIES • Utility Financial Analysis • Data Collection and Analysis • Statistical Analysis PROFESSIONAL HISTORY • Raftelis: Consultant (present) Associate Consultant (2017-2018) • UC Santa Barbara Department of Economics: Teaching Assistant (2017) • UC Santa Barbara Earth Research Institute: Graduate Student Assistant (2015-2017) • The Nature Conservancy: Science & Stewardship Practitioner (2013- 2015) EDUCATION • Master of Environmental Science & Management (Water Resources Management) – UC Santa Barbara (2017) • Bachelor of Science in Environmental Economics & Policy – UC Berkeley (2013) Charles Diamond Staff Consultant Consultant (Raftelis) Mr. Diamond has a background in natural resource economics and water resources manage- ment. His expertise lies in financial modeling and data analysis. He joined Raftelis initially in 2017 as an associate consultant upon receiving a master’s degree from UC Santa Barbara’s Bren School of Environmental Science & Management. Mr. Diamond has developed financial models and conducted analyses for water and wastewater rate studies as well as capacity fee studies. RELEVANT PROJECT EXPERIENCE City of Brentwood (CA) The City of Brentwood engaged Raftelis to conduct a water and wastewater rate study. In 2017, Raftelis helped the City evaluate the current water and wastewater utilities’ cost of service and adjusted rates accordingly. Recently Mr. Diamond updated a financial plan model and performed a cost of service analysis for the City’s wastewater utility. Mr. Diamond assisted with the update of existing rates as well as the development of a proposed alternative rate structure and rates. City of Dixon (CA) The City of Dixon engaged Raftelis in 2018 to conduct a water rate study to develop updated water rates for the City’s water utility. Mr. Diamond developed a ten-year financial plan model, performed a cost of service analysis, and developed a five-year schedule of proposed water rates. Mr. Diamond also assisted in the preparation of presentation materials for water rate workshops with the City Council. La Cañada Irrigation District (CA) La Cañada Irrigation District engaged Raftelis to conduct a water rate study. Since the last rate study was performed in 2008, Raftelis helped the District evaluate the cost of service and adjusted rates accordingly. In 2017, Mr. Diamond developed a financial plan model for the District to support the financial plan development for fiscal years 2018 to 2027. Mr. Diamond also recently performed a cost of service analysis to assist with the update of the District’s rates. Rancho California Water District (CA) Rancho California Water District (District) engaged Raftelis in 2017 to conduct a water capacity fees study. Raftelis reviewed and updated the existing methodology for calculating the District’s water capacity fees, developed a water capacity fee model for use in calculating updated capac- ity fees. As part of the study, Mr. Diamond developed the water capacity fee model, calculated updated water capacity fees, and drafted the study report. The District engaged Raftelis in 2018 to conduct a two-year water, recycled water, and waste- water rate study. Raftelis developed a cost of service rate model to allocate costs and calculate rates for fiscal years 2019 and 2020. Mr. Diamond assisted with rate model revisions, prepared presentation materials for meetings with the District’s Board of Directors, and drafted the rate study report. Santa Ana Watershed Project Authority (CA) The Santa Ana Watershed Project Authority engaged Raftelis in 2017 to develop a rate model for the Inland Empire Brine Line, which is a pipeline used to divert non-reclaimable waste- water of high brine content from the upper Santa Ana River Basin. Raftelis reviewed and recommended changes to the Authority’s reserve policies, developed a ten-year financial plan RAFTELIS 35 City Council Regular Meeting - Page 126 of 268 for the Brine Line Enterprise Fund, performed a multi-year cost of service analysis, and developed a rate model for use in calculating rates assessed to the Brine Line’s dischargers. Additionally, Raftelis assessed and recommended potential methodologies to be used in the development of long-term capacity leasing rates and rental charges. Mr. Diamond developed the financial plan, assisted with the cost of service analysis and rate calculation, drafted the study report, and attended multiple meeting with the Authority’s staff. City of Sonoma (CA) The City of Sonoma engaged Raftelis in 2018 to conduct a water rate study for the City’s water utility. The Study included the devel- opment of a five-year financial plan, a cost of service analysis, and the development of proposed water rates for fiscal years 2019- 2023. Mr. Diamond processed and analyzed account level billed water consumption data, assisted in development of the water rate model, and drafted the water rate study report. CITY OF LYNWOOD36 City Council Regular Meeting - Page 127 of 268 EDUCATION • M.S. Environmental Engineering / 1982 / University of Southern California, Los Angeles (USC) • B.S. Civil Engineering / 1981 / California State University, Los Angeles (CSULA) CERTIFICATION/ REGISTRATION • Civil Engineer No. 039599, California, 1985 Jeff Helsley PE Engineering Support Supervising Engineer (Subconsultant - Stetson) Mr. Helsley joined Stetson Engineers, Inc. in 1999 as project manager for water rights quantifica- tion and valuation studies, alternative water supply studies, water resource management studies, water facilities design including site improvements for drainage and access, and groundwater recharge feasibility studies including sand and gravel pits in the San Gabriel Valley. Mr. Helsley was formerly the District Engineer and Assistant General Manager of the Water Replenishment District of Southern California, where he was responsible for the development and implementation of programs to enhance groundwater recharge, improve groundwater basin management, and protect groundwater quality. RELEVANT PROJECT EXPERIENCE Water System Master Plans •City of Lakewood (Hydraulic Model Update) •City of Covina (Hydraulic Model prepared) •City of Glendora (Hydraulic Model prepared) •City of Industry •City of San Jacinto •Fontana Water Company (Hydraulic Model prepared) •La Puente Valley County Water District •San Antonio Water Company (Hydraulic Model prepared) •San Gabriel Valley Water Company •Pitchess Detention Center •Pyramid Lake Water Resources •Utilities Inc. of Central Nevada (Hydraulic Model prepared) San Gabriel Valley Municipal Water District •City of Sierra Madre Emergency Connection •Integrated Resources Plan Water Supply Assessments •The Shops at Santa Anita, Arcadia, California •Copa de Oro Development, Rosemond, California •Newhall County Water District, Santa Clarita Valley, California •Uptown Specific Plan, Whittier, California •Monrovia Nursery, Azusa/Glendora, California •West Main Street Master Plan, Alhambra, California •Valley Vision Specific Plan, San Gabriel, California Water Supply Feasibility Studies •Sierra Bella Development, Lucerne Valley, California •Sierra Lakes Development, Santa Clarita Valley, California •Rolling Meadows Development, Tejon Ranch, California •East Highlands Ranch, Upland, California •Larsen Ranch, Antelope Valley, California 37RAFTELIS City Council Regular Meeting - Page 128 of 268 EDUCATION • B.S. Environmental Engineering / 1999 / University of California, Berkeley • M.S. Civil Engineering / 2000 / University of California, Los Angeles CERTIFICATIONS/ REGISTRATIONS • E.I.T. No. 107911, State of California, July 9, 1999 • P.E. No. 66883, State of California, June 25, 2004 Stan Chen PE Engineering Support Civil Engineer (Subconsultant - Stetson) Mr. Chen has experience in water resource engineering including water system master plans, water supply plans, hydrologic studies, water rights and supply evaluation, and water quality studies. RELEVANT PROJECT EXPERIENCE City of Sierra Madre •2010 Urban Water Management Plan Update Water System Master Plans •City of Lakewood (Hydraulic Model Updated) •City of Covina (Hydraulic Model prepared) •City of Glendora (Hydraulic Model prepared) •City of Industry •City of San Jacinto •Fontana Water Company (Hydraulic Model prepared) •La Puente Valley County Water District •San Antonio Water Company (Hydraulic Model prepared) •San Gabriel Valley Water Company •Pitchess Detention Center •Pyramid Lake Water Resources •Utilities Inc. of Central Nevada (Hydraulic Model prepared) Develop Urban Water Management Plans •Apple Valley Ranchos Water Company (Liberty Utilities) •Cal Domestic Water Company •California Domestic Water Company •City of Arcadia •City of Azusa •City of Downey •City of El Monte •City of Glendora •City of Manhattan Beach •City of Monrovia •City of Monterey Park •City of San Jacinto •City of Santa Fe Springs •City of South Pasadena •City of Whittier •Phelan Pinon Hills Community Services •San Gabriel County Water District •San Gabriel Valley Municipal Water District •San Gabriel Valley Water Company/Fontana Water Company •Suburban Water Systems •Sunny Slope Water Company •Upper San Gabriel Valley Municipal Water District •Valley County Water District Los Angeles County Local Agency Formation Commission •Prepared a regional comprehensive water study of Santa Clarita Valley water purveyors 38 CITY OF LYNWOOD City Council Regular Meeting - Page 129 of 268 Drinking Water Source Assessment and Protection Program •Conducted groundwater assessments for approximately 200 sources in the Main San Gabriel Basin and Raymond Basin San Luis Rey Indian Water Authority •Prepared current and projected water supply and demand analysis Southern California Water Company •Performed region wide evaluation of system performance based upon water quality, system capacity, and reliability issues Newport Beach, California •Evaluated hydraulic impacts of stormwater on property. Water Supply Assessments •Prepared a Water Supply Assessment for the City of Arcadia •Prepared a Water Supply Assessment for the City of Alhambra •Prepared a Water Supply Assessment for the San Gabriel County Water District •Prepared Water Supply Assessment reports for San Gabriel Valley Water Company’s Fontana Division regarding different specific plans •Prepared a Water Supply Assessment of the Santa Clarita Valley (Newhall County Water District) 39RAFTELIS City Council Regular Meeting - Page 130 of 268 References REFERENCES HERE, WE HAVE INCLUDED REFERENCES FOR FOUR CLIENTS. WE URGE YOU TO CONTACT THEM TO BETTER UNDERSTAND OUR CAPABILITIES AND THE QUALITY OF SERVICE THAT WE PROVIDE. Appomattox River Water Authority VIRGINIA Client Contact: Robert Wichser, Executive Director P: 804.590.1145 x101 / E: rwichser@arwava.org Project Name: Valuation of Water System Assets and Review of Governance & Ownership Alternatives Key Team Member: John Mastracchio, PE, CFA (Project Manager) City of Redlands CALIFORNIA Client Contact: Chris Diggs, Former Utility Director (currently with the City of Pomona as a Water Resources Director) P: 909.557.4963 / E: Chris_Diggs@ci.pomona.ca.us Project Name: Water & Wastewater Rate Study/Capacity Charges/Valuation Study Key Team Member: Sudhir Pardiwala, PE (Project Manager) City of San Diego CALIFORNIA Client Contact: Lee Ann Jones-Santos, Assistant Director - PUD P: 858.614.4042 / E: LASantos@sandiego.gov Project Name: Groundwater Valuation Key Team Member: Habib Isaac (Project Manager) City of Manassas VIRGINIA Client Contact: Tony H. Dawood, P.E., Director of Utilities P: 703.257.8382 / E: tdawood@ci.manassas.va.us Project Name: Water System Valuation Key Team Member: Bart Kreps (Project Manager) 40 City Council Regular Meeting - Page 131 of 268 Agreement to the City Contract Terms and Ability to Obtain Insurance AGREEMENT TO THE CITY CONTRACT TERMS AND ABILITY TO OBTAIN INSURANCE Raftelis reviewed the City’s contract terms, and we respectfully request that the City consider the following revision to the agreement (shown in red below): 3. Indemnification. B. City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, “Indemnitees”) shall have no liability to Consultant or any other person for, and Consultant shall indemnify, defend, protect and hold harmless Indemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys’ fees and disbursements (collectively “Claims”), which Indemnitees may suffer or incur or to which Indemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or other loss occurring as a result of or allegedly caused by Consultant performance of or failure to perform any services under this Agreement or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, subcontractor, sub consultant or employees, committed in performing any of the services under this Agreement. Notwithstanding the foregoing, the provisions of this subsection shall not apply to Claims occurring as a result of the City’s sole negligence or willful acts or omissions. 41 City Council Regular Meeting - Page 132 of 268 INSR ADDLSUBRLTRINSRWVD DATE (MM/DD/YYYY) PRODUCER CONTACTNAME:FAXPHONE(A/C, No):(A/C, No, Ext):E-MAILADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS(MM/DD/YYYY)(MM/DD/YYYY) COMMERCIAL GENERAL LIABILITY AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATIONAND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE INSURER(S) AFFORDING COVERAGE NAIC # Y / N N / A(Mandatory in NH) ANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED? EACH OCCURRENCE $ DAMAGE TO RENTED $PREMISES (Ea occurrence)CLAIMS-MADE OCCUR MED EXP (Any one person)$ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ $ PRO- OTHER: LOCJECT COMBINED SINGLE LIMIT $(Ea accident) BODILY INJURY (Per person)$ANY AUTOOWNED SCHEDULED BODILY INJURY (Per accident)$AUTOS ONLY AUTOS AUTOS ONLYHIRED PROPERTY DAMAGE $AUTOS ONLY (Per accident) $ OCCUR EACH OCCURRENCE $ CLAIMS-MADE AGGREGATE $ DED RETENTION$$ PER OTH-STATUTE ER E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $If yes, describe under E.L. DISEASE - POLICY LIMIT $DESCRIPTION OF OPERATIONS below POLICY NON-OWNED SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED INACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIODINDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THISCERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THISCERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIESBELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZEDREPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement onthis certificate does not confer any rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER:REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION © 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORDACORD 25 (2016/03) ACORDTM CERTIFICATE OF LIABILITY INSURANCE National Fire Insurance Co. of Hartford Continental Insurance Company 1/29/2019 Cameron M Harris & Co, LLC Div USI Ins 6100 Fairview Road Ste 1400 Charlotte, NC 28210 Linda Rolfe 980-265-5804 linda.rolfe@usi.com Raftelis Financial Consultants, Inc. 227 West Trade Street, Ste. 1400 Charlotte, NC 28202 20478 35289 A X X 607000011 01/21/2019 01/21/2020 1,000,000 500,000 15,000 1,000,000 2,000,000 2,000,000 A X X 6076000025 01/21/2019 01/21/2020 1,000,000 B x 6076000039 01/21/2019 01/21/2020 5,000,000 5,000,000 B N 6076000008 607600042-CA 01/21/2019 01/21/2019 01/21/2020 01/21/2020 x 1,000,000 1,000,000 1,000,000 B Prof. Liability 652071235 01/21/2019 01/21/2020 $5,000,000 Occurrence $5,000,000Aggregate City of Lynwood, its officers, officials, employees and volunteers are hereby added as additional insured with respect to General Liability. 30 day notice of cancellation will be given except for non-payment of premium will be 10 days. Coverage is written on primary and non-contributory basis. City of Lynwood, Public Works Department 11330 Bullis Road Lynwood, CA 90262 1 of 1#S24845939/M24790795 RAFTEFINClient#: 1722483 LXREZ1of 1#S24845939/M24790795 42 CITY OF LYNWOOD City Council Regular Meeting - Page 133 of 268 Raftelis does not have any past or pending litigation, or claims filed, against our firm, principals of the firm, or each of our key consultants. Legal Issues LEGAL ISSUES 43 City Council Regular Meeting - Page 134 of 268 Raftelis nor any principal of the firm has been, or currently is, the subject of any investigation by the City, State, and/or Federal agencies within the past five years. Disclosures DISCLOSURES44 City Council Regular Meeting - Page 135 of 268 Raftelis shall adhere to all federal laws, state, and local laws and regulations Raftelis shall allow authorized federal, state, county, and the City’s official’s access to place of work, books, documents, papers, fiscal, payroll materials, and other relevant contract records pertinent to the Project. All relevant records shall be retained for at least three years. Raftelis will not discriminate against any employee or applicant for employment because of race, color, reli- gion, sex, or national origin Raftelis shall comply with the California Labor Code. Pursuant to said regulations entitled: Federal Labor Standards provisions: Federal Prevailing Wage Decision; and State of California Prevailing Wate Rates, respectively. Additional Statements ADDITIONAL STATEMENTS 45 City Council Regular Meeting - Page 136 of 268 Raftelis proposes to complete the scope of work on a time-and-materials basis. The following table shows our proposed fee (both with and without Optional Task 6) and provides a breakdown of the estimated hours by task and our hourly billing rates. Cost Proposal Hours PD PM SC Stetson - JH Stetson - SC Admin Total 1. Data Collection, Review and Kick-off Phone Conference 1 8 16 16 2 42 $9,320 2. Water and Sewer Utility Valuation 2 14 24 40 78 $17,499 3. Planning Level Engineering Cost Estimates for Non-Pipeline Assets 8 42 $7,906 4. Draft and Final Reports 4 12 32 48 $9,980 5. City Council Presentation 1 8 6 $3,135 Total Estimated Meetings / Hours 1 3 26 60 94 8 42 2 168 Hourly Billing Rate $295 $240 $185 $206 $149 $80 Total Professional Fees $7,670 $14,400 $17,390 $1,648 $6,258 $160 $47,526 Total Fees $47,526 Total Expenses $314 Total Fees & Expenses $47,840 6. Optional - Onsite Condition Assessment and Memo 1 12 24 $6,048 Total Including Optional Task $53,888 Total Fees & Expenses PD - Project Director, John MastracchioPM - Project Manager, Steve Gagnon, PEJH- Jeff Helsley, PE, Stetson EngineersSC - Stan Chen, Stetson EngineersSC - Staff ConsultantsAdmin - Administrative Staff Tasks Web Meetings Number of Meetings / Site Visits 46 COST PROPOSAL City Council Regular Meeting - Page 137 of 268 Hourly Rate Schedule Position Hourly Billing Rate** Chair/Chair Emeritus $425 Chief Executive Officer/President $375 Executive Vice President $325 Vice President $295 Director of Governmental Services $295 Senior Manager $265 Director of Florida Operations $225 Manager $240 Director of Data Services $240 Senior Consultant $210 Consultant $185 Creative Director $175 Associate $155 Graphic Designer $125 Analyst $110 Administration $80 Technology/Communications Charge*$10 Personnel Hourly Billing Rate Jeff Helsley, PE $206 Stan Chen, PE $149 * Technology/Communications Charge – this is an hourly fee charged monthly for each hour worked on the project to recover telephone, facsimile, computer, postage/overnight delivery, con-ference calls, electronic/computer webinars, photocopies, etc. ** For services related to the preparation for and participation in deposition and trial/hearing, the standard billing rates listed above will be increased by an amount up to 50%. Raftelis Stetson 47RAFTELIS City Council Regular Meeting - Page 138 of 268 CITY OF LYNWOOD PROPOSAL FOR VALUATION STUDY OF THE WATER AND SEWER SYSTEMS City Council Regular Meeting - Page 139 of 268     1. Cover Letter    January 31, 2019  Ms. Lorry Hempe  Public Works Special Projects Project Manager  City of Lynwood  11330 Bullis Road  Lynwood, California  90262    Re:  Request for Proposal for Valuation of the Water and Sewer Systems  Dear Ms. Hempe:  Please accept this proposal from Willdan to provide the City of Lynwood (the “City”) with a valuation of the City’s  water and sewer utility system assets. This type of project will be a combination of financial and engineering  disciplines and will include a multi‐phased approach that will be critical to the success of the project. Project goals,  scope of services, timeline and cost will be clearly defined, and mutually agreed upon, prior to the start of the project.  It is equally important to effectively communicate the results and implications of the study. Our interactive approach,  concise reports, and presentation material will result in stakeholders having a thorough understanding of the project  and the rationale behind the development of the established asset value.  Due to our proposed team's experience preparing original sewer system management plans, updates, and biannual  audits, Willdan can provide project team talent and expertise to ensure the City's project goals are achieved. We  offer:   Project Understanding. Willdan understands the purpose of this valuation is to establish a value for the City’s  utility system to satisfy State of California requirements. Our proposed team members have the experience  necessary to provide the City with a certified appraisal of their utility system that will meet the ethical and  performance standards established by the Uniform Standards of Professional Appraisal Practice and withstand  scrutiny.   City  Partnership.  Willdan  has  been  partnering  with  the  City  of  Lynwood  to  assist  with  their  community  enhancement projects since 1983. Our services include right‐of‐way engineering, construction management,  building plan check, geotechnical investigations, on‐call city and traffic engineering, interim building official and  city engineer, and financial consulting services.   Highly Skilled Project Manager. Ms. Tara Hollis, CPA, MBA, has over 20 years of consulting experience and has  worked on more than 150 utility system valuation and appraisal studies, as well as numerous utility sales  transaction assignments.     Los Angeles County Knowledge. Willdan has been providing municipal engineering, planning, and construction  management services to public agencies located in Los Angeles County for over 54 years. Through this service  – and those provided directly to the County, we are experts in understanding and interfacing our clients'  standards, policies, and procedures with those of the County. We have established working relationships with  a multitude of jurisdictional agencies within the County.  City Council Regular Meeting - Page 140 of 268 Ms. Lorry Hempe, City of Lynwood  Request for Proposal for Valuation of the Water and Sewer Systems  January 31, 2019  Page ii         Subject Matter Expertise. Our proposed project team is comprised of professionals with extensive experience  in valuing public utilities, including 1 of only 16 Accredited Senior Appraisers nationwide with the Machinery  and Technical Specialty‐Public Utilities designation from the American Society of Appraisers. Our professionals  recently helped a California water management district with similar services and will bring that valuable  experience to the City’s project. In addition, Willdan offers a broad range of multidisciplinary engineering and  planning services, with a full complement of staff available to provide support services as may be needed during  this engagement.   We are excited about this opportunity and trust that this proposal will outline the strength of our qualifications and  experience, as well as explain our approach and proposed scope of work. If you have any questions, please do not  hesitate to contact me at (800) 755‐6864, extension 1155, or via email at jmcgarvey@willdan.com or Deputy Director  of Engineering Tyrone Peter, PE at (657) 223‐8557 or via email at tpeter@willdan.com.  Respectfully submitted,    Jeff McGarvey  Managing Principal, Vice President  City Council Regular Meeting - Page 141 of 268 Valuation Study of the  Water and Sewer Systems    iii Table of Contents    2.  Firm Organization, Credentials and Background .................................................................................................... 1  Firm Profile .................................................................................................................................................................... 1  National and Pacific Region Experience ..................................................................................................................... 2  Office Location .............................................................................................................................................................. 2  Principals of the Firm .................................................................................................................................................... 2  Financial Condition ........................................................................................................................................................ 3  3.  Approach to the Scope of Work ............................................................................................................................. 4  Overview ....................................................................................................................................................................... 4  Proposed Scope of Work ............................................................................................................................................... 4  4.  Experience ............................................................................................................................................................ 11  5.  Timeline ................................................................................................................................................................ 14  6.  Qualifications of Proposed Personnel .................................................................................................................. 15  Resumes ...................................................................................................................................................................... 16  7.  References ............................................................................................................................................................ 38  City of Queen Creek, AZ – Valuation Services and Financial Feasibility Analyses ................................................ 38  City of Vero Beach, FL – Water and Wastewater Utility System Appraisal .......................................................... 38  Heritage Hills Water Works Corporation and Heritage Hills Sewer Works Corporation, NY – Utility System  Appraisal and Sales Negotiation Support ............................................................................................................. 38  8.  Agreement to City Contract Terms and Ability to Obtain Insurance .................................................................... 39  Agreement to City Contract Terms ............................................................................................................................. 39  Ability to Obtain Insurance ......................................................................................................................................... 39  9.  Legal Issues ........................................................................................................................................................... 40  10.  Disclosures ............................................................................................................................................................ 40  11.  Additional Statements .......................................................................................................................................... 40  12.  Cost Proposal ........................................................................................................................................................ 41  Billing Rates ................................................................................................................................................................. 42  City Council Regular Meeting - Page 142 of 268 Valuation Study of the  Water and Sewer Systems    1 2. Firm Organization, Credentials and Background  Firm Profile  Willdan Financial Services, established on June 24, 1988, is  one of four operating divisions within Willdan Group, Inc.  (WGI), which was founded in 1964 as an engineering firm  working with local governments. Today, WGI is a publicly‐ traded company (NASDAQ ticker: WLDN). WGI, through its  subsidiaries, provides professional technical and consulting  services that ensure the quality, value and security of our  nation’s  infrastructure,  systems,  facilities,  and  environment. The firm has pursued two primary service  objectives since its inception—ensuring the success of its  clients  and  enhancing  its  surrounding  communities.  In  doing so, WGI has gained a notable reputation for technical  excellence, cost‐effectiveness, and client responsiveness in  providing  superior  consulting  services.  The  company's  service offerings span a  broad set  of  complementary  disciplines that include engineering and planning, energy  efficiency and sustainability, financial and economic consulting, and national preparedness. Willdan has crafted this  set of integrated services so that, in the face of an evolving environment—whether economic, natural, or built— Willdan can continue to extend the reach and resources of its clients. Currently, WGI has 1,200 employees operating  from offices in Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Illinois, Kansas,  Nevada, New Jersey, New York, Ohio, Oregon, Utah, Texas, and Washington.  Willdan assists local public agencies by providing the following services:  Financial Services   Utility Valuations, Mergers, Acquisitions    Utility Rate and Cost‐of‐Service Studies   Debt Issuance Support   Regulatory/Litigation Support    Contract Development and Assistance   Expert Witness Testimony  Engineering Services   Water and Wastewater Engineering    Flood Control and Drainage Engineering   Planning/Environmental Compliance   Transportation, Structural and Traffic Engineering  Forensic Investigation    Soils and Laboratory Materials Testing   Development Plan Review   Landscape Architecture   Construction Management and Inspection  Homeland Solutions   Infrastructure Protection   Needs Assessment   Large Event Security   Energy Solutions   Demand Side Energy Management   Energy Efficiency   Water Conservation   Renewable Resources/Sustainability   City Council Regular Meeting - Page 143 of 268 Valuation Study of the  Water and Sewer Systems    2 National and Pacific Region Experience  Willdan staff are experienced in a  broad  range  of  utility  planning  services  and  therefore  understand the importance of an  approach  that  integrates  elements  of  rates  and  capital  planning with the political aspect  of  the  utility.  A  graphic  representation  of  Willdan’s  geographical  client  presence  is  depicted to the right.  Office Location   Services will be provided through  Willdan  offices  located  in  Anaheim,  California and  Orlando,  Florida.  The  location  and contact information for each  office is shown below.    Anaheim, California Orlando, Florida  2401 East Katella, Suite 300  200 South Orange Avenue, Suite 1550  Anaheim, California  92806 Orlando, Florida  32801  Tel #: (714) 940‐6300   Fax #: (714) 940‐4920  Tel #: (407) 872‐2467  Fax #: (888) 326‐6864     Mr. Tyrone Peter, PE, located in the Anaheim office listed above will serve as Engagement Director for this project  with the City of Lynwood (“City”) throughout the contract's duration. Mr. Peter can be reached by mail at the address  listed above, by phone at (657) 223‐8557; by cell phone at (714) 393‐1963; or by email at tpeter@willdan.com.  Principals of the Firm   Identified below is the slate of officers for Willdan Financial Services.  Willdan Financial Services  Slate of Officers  Thomas D. Brisbin  Chairman of the Board  Mark J. Risco  President and CEO  Stacy McLaughlin  Chief Financial Officer, Treasurer  Chris Fisher  Vice President ‐ Group Manager  Gladys Medina  Vice President ‐ Group Manager  Anne Pelej  Vice President ‐ Group Manager  Dan Jackson  Vice President  Jeff McGarvey  Vice President  Kate Nguyen  Secretary  Cathy Steele  Assistant Secretary  Rebekah Smith  Assistant Secretary  City Council Regular Meeting - Page 144 of 268 Valuation Study of the  Water and Sewer Systems    3 Financial Condition   Willdan Financial Services is a wholly‐owned subsidiary of Willdan Group,  Inc. WGI has sustained a healthy financial performance record due to the  outstanding  performance  of  the  four  operating  divisions  and  a  strong,  dependable  reputation  in  municipal  consulting.  A  snapshot  of  WGI’s  financial statistics are provided to the right demonstrating our financial  position. Detailed financial statements and annual reports are included on  our webpage (http://ir.willdangroup.com/). As a publicly traded company  (NASDAQ  ticker:  WLDN),  must  provide  public  financial  information  as  required by the SEC.   Furthermore, Willdan Financial Services specifically has over 70 full‐time  employees based from regional offices located in Plano, TX; Orlando, FL;  Washington,  DC;  Phoenix,  AZ;  Aurora,  CO;  and  Oakland,  CA.  This WGI  division is headquartered in Temecula, CA.      Financial Stability  In business for over 50 years   Market capitalization of   $242.6 million (as of end of   2nd Quarter, 2017)   Fiscal 3rd Quarter 2018 revenue  (3 months) of $71.4 million   Fiscal Year 2017 revenue of  $273.4 million   $35 million Line of Credit with  the ability to increase up to   $60 million (as of end of 3rd  Quarter, 2018)   $16.7 million in cash and cash  equivalents (as of 3rd   Quarter 2018)  City Council Regular Meeting - Page 145 of 268 Valuation Study of the  Water and Sewer Systems    4 3. Approach to the Scope of Work  Overview  It is our understanding that City of Lynwood (“City”) seeks professional services to value the specific water and sewer  assets owned and operated by the City’s utility, as identified in the City’s financial system, including fixed asset records  as they exist.    The scope of services set forth herein is based on Willdan’s current understanding of the project. This proposed scope  will provide the City with a fair market value appraisal of the water and sewer system assets. Our project process will  follow the series of systematic sequential tasks detailed to prepare a Uniform Standards for Professional Appraisal  Practice (USPAP) compliant appraisal report with an opinion of value of the Utility System Assets. Three valuation  methods will be used in this report including: 1) the cost approach, 2) the income approach, and 3) the comparable  sale or market approach. This Valuation Study will include a reconciliation  of  the  valuation  approaches  and  certification as to the opinion of the system value by an Accredited Senior Appraiser with a Machinery and Technical  Specialty  designation  in  Public  Utilities  from  the  American  Society  of  Appraisers.  The  Appraisal  Report  will  be  presented to the City with the appropriate certifications for governmental use and within the guidelines of the  assignment.  The scope set forth below can be modified, as necessary, to reflect any subsequent changes identified during the  initial project meeting.  Proposed Scope of Work  Provided below is a detailed description of the scope of work anticipated to prepare the City’s Water and Sewer  System Valuation Study pursuant to the City’s RFP. Willdan will rely on the validity and accuracy of the data and  documentation provided by others to complete our analysis. Willdan will rely on the data as being accurate without  performing an independent verification of accuracy, and Willdan will not be responsible for any errors that result from  inaccurate data provided.  Task 1:  Project Initiation/Data Collection  Subtask 1.1:  Kick‐off Meeting  The project will commence with an initial meeting with representatives of the City to discuss the Water and Sewer  System Valuation Study. The purpose of this meeting will be to reach a mutual understanding regarding project  objectives, scope of specific issues to be addressed, project schedule, the work plan, and protocols for coordinating  project activities. This meeting will also serve to formalize lines of communication between Willdan, City personnel,  and other stakeholders.  Subtask 1.2:  Data Collection and Review  Willdan will collect available information pertaining to the water and sewer system. It is anticipated that the necessary  data will come from various sources. Among the types of information required to perform the Valuation Study include  the following:   Historical financial statements;   Detailed fixed asset listing including in‐service dates and original cost;   Historical customer and flow data;   Existing and historical utility rates;   System operating reports including interviews with operations staff to fill‐in needed details or to formulate  City Council Regular Meeting - Page 146 of 268 Valuation Study of the  Water and Sewer Systems    5 adequate assumptions;   Engineering reports (i.e. condition of facilities), the existing 2009 SSMP GIS features data, the 2005 Water  System Master Plan, and interviews with City staff to approximate any missing conditions data. [Water System  GIS features data is not yet developed or available]; and   Wholesale service agreements (if applicable).   The data will be reviewed for completeness and to ensure a sufficient understanding of the utility’s operations. The  data collection and review process will be ongoing throughout the study as the need for additional information arises.    Task 2:  Cost Approach  There  are  three  types  of  cost  approach  methodologies:  1)  the  original  cost  (that  is  trended  upwards);  2)  the  reproduction cost; and 3) the replacement cost. The reproduction cost, replacement cost and original cost are all less  depreciation. This approach may be given the most weight due to the quality and quantity of information and the  unique nature of the assets. The subtasks associated with this evaluation are further detailed below.  Subtask 2.1:  Field Assessment  The field assessment will consist of a physical review by members of the project team of the water and sewer systems.  This will include a review of system maps and drive‐by and visual inspection of system assets and appurtenances.  Subtask 2.2:  System Valuation Process  The detailed valuation process typically includes several valuation methodologies to establish a range of values for the  system facilities to be acquired. State laws and case precedent may establish the methodologies required to be used  in determining the purchase price of a utility system. Willdan will meet with City representatives and its legal counsel  to review all applicable statutes and case precedent. In this analysis, replacement cost in like, kind, and quality, would  most likely be the type of cost approach to be considered. Willdan will utilize the findings from the field analysis and  condition assessment (if selected) in preparing the adjustments to the estimate of system facilities. The valuation  methods will be adjusted based on the results of the field assessment.  Subtask 2.3:  Develop Estimate of System Facilities  The inspection will be compared to asset and condition inventory of the assets being acquired. The dates of installation  or the date of the latest full renewal and replacement to attain the effective age of the asset will be conducted. The  project team will use industry service lives and will assess the physical depreciation, functional/economic depreciation  and external depreciation of the system assets.  Subtask 2.4:  Real Estate Valuation  Willdan will obtain a list of real property and easements owned by the utility system. Based on sales of similar  properties sold within the surrounding areas, Willdan will develop a value for the tangible real property of the utility  to be used as part of the cost approach analysis.    Task 3:  Income Approach  The income approach values the utility based on the present value of the available cash flows anticipated to be  generated in the future. The theory behind this approach is based upon the concept of converting the anticipated  financial benefits of ownership in the future to an estimate of the present value in today’s environment. Depending  upon the circumstances surrounding each acquisition, the income stream may be based on the net operating revenues  derived from existing and future growth as well as the value of capital contributions received from new growth in the  future.   City Council Regular Meeting - Page 147 of 268 Valuation Study of the  Water and Sewer Systems    6 Regarding the income approach, the City would account for its utility system operations as a not‐for‐profit entity.  Typically, in these types of transactions the income would need to be adjusted to assure that the hypothecated net  income stream is representative of the type of operations expected after the utility system sale. Due to the not‐for‐ profit nature of the system and the lack of optimization financially of the operations and asset management, we expect  the income method to provide a base (floor) to the evaluation analysis. In consideration of reconciliation of value, it  is very difficult to adjust a non‐for‐profit entity based on profits to get to full fair market value. Therefore, less weight  may be given to this valuation approach.    Subtask 3.1:  Data Review  The income approach utilizes a significant amount of data, typically prepared and provided by the City. In preparation  of this approach, the project team will review various financial and system data including, but not limited to:   Audited Annual Financial Reports for the System for the previous five years;   Proposed budget for the current year;   Year‐to‐date financial results by account;   As applicable, copies of City/Utility Agreements including Pension Fund, General Insurance Agreements, Union  Agreements, etc.; and   The current adopted system rates and charges schedule.  Subtask 3.2:  Analysis and Projections  Utilizing  the  historical  information  as  a  basis,  the  project  team  will  develop  a  test  year  with  adjustments  as  appropriate. This test year will then be escalated annually for items including customer growth, general inflation,  projected labor costs, etc., to develop a pro forma analysis for a 20 to 30‐year period. In order to develop a final value  for the income approach, a discount factor will be developed that considers the risk‐free rate, future risks associated  with currency values, industry risk evaluating the overall stability of the utility industry, and the specific rate which  evaluates the utility’s risk based on geographical location.    Task 4:  Comparable Sales Approach  The comparable sales approach to utility valuation assumes that knowledgeable buyers and sellers of water utilities  generally know the “market” for such utilities. The purpose of this market approach is to examine the history of water  utility acquisitions, and to analyze the conditions under which the utilities were acquired in an effort to arrive at an  implied purchase price for the subject utility. Extensive research has been conducted in order to gather a database of  information regarding utility acquisitions. In order to compare the different transactions, various financial, technical,  legal, and customer service information was analyzed and adjusted. Moreover, discussions with the negotiators,  buyers, and sellers are useful and informative to the analyses.  There are many factors which are involved in the determination of an acquisition price of a utility. These factors create  both similarities and differences between the transactions which, in essence, result in the formation of a well‐mixed  market of utility sales. The comparable sales approach considers such factors, and makes adjustments as necessary,  in order to arrive at an implied value for the subject utility.  Subtask 4.1:  Identify Comparable Sales Transactions  The comparable sales approach considers transactions of systems similar to those of the City. Key components to be  used in identifying transactions to use include:   Treatment plant;   Treatment type;   Storage capacity;   System capacity;   Customers; and   Revenues.  City Council Regular Meeting - Page 148 of 268 Valuation Study of the  Water and Sewer Systems    7 Subtask 4.2  Comparable Sales Selection and Analysis  Each of these transactions identified in the preceding task needs to be reviewed and narrowed down to the sales  transactions that appear the most similar to and consistent with the transactions and characteristics of the City’s  system assets. In order to accomplish this task, the project team will identify selection criteria that may include the  following:   Type of system;   Arms‐length;   Timeframe of sale; and   Number of customers.  There are several market factors that can influence the purchase price and may require adjustments to make this  transaction comparable with the other transactions as well as the subject transaction for the City. These factors  include, but are not limited to the following:   Agreements: purchase water, franchise agreements and customer/large user agreements.   System Characteristics: percent depreciated, system condition, system configuration, immediate CIP needs as  well as any separation/reintegration costs.    Size: current system size and future growth potential.   Customer Mix: Customer load percentages and equivalent residential connections based on both revenues and  gallons per day.  A description of the selected comparable sales will be prepared, with the appropriate adjustments, and presented in  a USPAP compliant analysis.  Task 5:   Intangibles Analysis  In a typical acquisition of utility system assets, there are certain intangible costs that will, by necessity, arise. The  project team will review contract rights and privileges, going concern value, etc., as part of this fair market value  appraisal.   Meetings, Public Presentations and Deliverables  To successfully provide the professional services related to the completion of the fair market value appraisal of the  City’s utility system, the project team anticipates, at a minimum, the following meetings, public presentations and  deliverables:   Project Initiation – Prepare a data request such that the data needed to complete the fair market value appraisal  may be assembled as quickly as possible.   Kick‐off Meeting – The project team will meet with City staff prior to commencing the assignment to obtain and  discuss the goals and objectives. It is anticipated that there will also be discussions regarding:  o Data availability;  o Historic operating and administrative policies and procedures;  o Consultant/City communications;  o Time schedules; and  o Meeting and deliverable formats.   Field Inspections – Meet with City staff so that site reconnaissance can be made of the existing system facilities.   Draft Report – Prepare a draft Appraisal Report for review by the City.    Draft Report Meeting – One meeting is contemplated between the project team and the City. It is anticipated  that upon completion of such meeting, sufficient comments and direction from the City staff will be provided  whereby the team can finalize the Appraisal Report.  City Council Regular Meeting - Page 149 of 268 Valuation Study of the  Water and Sewer Systems    8  Final Report – Copies of the final Appraisal Report will be provided to the City.   Final Report Meeting – Willdan will present the findings to of the valuation analysis to the City Manager.   Presentation to City Council– The project team will present the fair market value opinions and detailed results  of the appraisal analyses at one (1) meeting of the City Council.  Additional Services   Condition Assessment: Willdan will conduct an on‐site inspection of accessible water and sewer utility system  assets. Services performed as part of this Task include:  o Visual  inspection  of  above  ground  infrastructure  to  assess  degree to which the systems have been  historically maintained.  o Adjustments to asset listing as necessary, to account for additional assets identified during field inspection  that are not currently accounted for in City’s accounting records.  o Review City’s operations and maintenance procedures to determine if appropriate to maintain current  system assets.  o Documentation of field investigations including field notes, photographs, inspection report, etc.   Real Estate Appraisal: If requested, Willdan can work with the City to identify a local land appraiser to conduct  an appraisal of the utility system land and easements. The Land Appraiser will follow standard real estate  valuation practices and techniques pursuant to USPAP for Special Purpose Property. This analysis will include  on‐site inspections as well as review of deeds and legal descriptions.     Typical Data Needed to Complete Valuation  In order to meet the deadlines and goals of the water and sewer system valuation study, it is imperative that certain  data regarding the subject water and sewer system activities be provided in a timely fashion. The initial gathering of  data is a critical component in the development and completion of this study on a timely basis. The following list of  items are the typical items that would be needed to complete a study of this nature:   All water and sewer permits including those from local environmental and water management agencies.   Water monthly operating reports as filed with local regulatory agency for the past five years.   Sewer discharge monitoring reports as filed with local regulatory agency for the past five years.   Regulatory water and sewer inspection reports and sanitary surveys for the past five years.   Any notices of violation, consent orders or other regulatory actions, if any, pertaining to the water and sewer  systems.   Available water distribution system pressure logs and fire hydrant flow and pressure tests for the preceding 24‐ month period.   Water quality data for the past five years for each well including primary, secondary, and priority pollutant  monitoring required by the state regulatory agency.   Lift station pump run time logs for the past five years.   TV inspection video summaries for the sewage collection system, if available.   Any engineering reports, inspection reports and/or master plans for the water and sewer system.   Active developer agreements, bulk sale agreements, special customer agreements, lease agreements, labor  contracts, vendor agreements, operational agreements, or any other agreements affecting water or wastewater  sales, asset values and/or revenue and expense levels.  City Council Regular Meeting - Page 150 of 268 Valuation Study of the  Water and Sewer Systems    9  As‐built or record drawings for the water and sewer system. If as‐built or record drawings are not available, such  construction drawings that provide a complete and accurate description of the system.   Overall system atlases for the water and sewer systems.   Agreements, legal descriptions, and warranty deeds of all fee simple land and easements.   Any interlocal agreements and service area agreements with other municipal and investor owned entities.   Most current meter accuracy test results.   Map detailing the current approved water and sewer service area.   Listing of all assets including water and sewer fleet and equipment, water and sewer treatment equipment,  piping, manholes, meters, services, lift stations, etc., by year in service. (Note: Piping should also be broken out  by material and size.) In addition, provide historical cost data, where available.   Current capital improvement program (CIP) for the water and sewer systems.   Projected CIP for the next five years.   Preventive maintenance records of the water and sewer system and any capital replacements extending the  service life of the water and wastewater system for the past five years.   Bid forms, itemized construction cost data, and contractor pay requests for construction on the water and sewer  system for the past five years.   Audited Annual Financial Reports for the past five years for the water and sewer systems.   Financial reports, draft or final, for the current year.   Current budget for the water and wastewater system.   Historical budgets for the past five years for the water and sewer system.   Any projected budgeted costs for the water and sewer system.   Current water and sewer rate schedules including any miscellaneous charges, capacity fees, connection charges,  etc.   Five‐year historical and projected customer connections for the systems.   Current list of customers by meter size and class of service for water and sewer. Also include a historical billing  analysis by meter size and customer class for the past three years, if available.   Top ten customers by revenue for the most recent fiscal year by customer class. Also include total flows.   Billing collection rate percentages (i.e. amount billed versus collected) for the systems.    Staff Support  To complete our tasks, we will need the cooperation of the City staff. We suggest that the City assign a key individual  to represent the City as the project representative who can function as our primary contact. Willdan will endeavor to  minimize the impact on the City staff in the completion of this project.  We anticipate that the City’s project representative will:    Coordinate responses to requests for information;    Coordinate review of work products; and    Help resolve policy issues.   City Council Regular Meeting - Page 151 of 268 Valuation Study of the  Water and Sewer Systems    10 Project Management  Effective project oversight is critical to a project of this type in order to: 1) keep all parties focused on the overall goals  and objectives of the project; 2) ensure adherence to the project schedule; and 3) have the best opportunity for a  successful project outcome. Willdan approaches complex projects such as this with an experienced management  team. The management procedures and controls for this project emphasize communication, quality assurance, and  regular formal reporting of progress against the project budget and schedule. Several of the team members have  worked together for more than two decades. This has enabled the project team to develop mutual understandings  and respect for successfully accomplishing project goals. As part of the project administration, Willdan will set forth  the project timeline with milestones for completion of the various tasks, provide periodic status reports, provide  monthly invoicing and identify when client interaction is required to fulfill the various tasks.    Our project process will follow the series of systematic sequential tasks to prepare a USPAP compliant appraisal report  with an opinion of fair market value of the Utility System Assets. The Appraisal Report will be presented to the City  with the appropriate certifications for governmental use and within the guidelines of the assignment.  We believe this clarity of scope prior to commencement of the project is the basis for good communication with the  City. The project team will provide the City with frequent updates on the status of completion of individual tasks, and  on all questions and resolutions that arise throughout the project. We will offer our immediate availability to the City  for all questions and new project developments.  Our overall project approach is to achieve the City’s objectives by communicating with City staff and using our team's  experience for a timely, cost‐effective solution. Our project team is committed to building our relationship with the  City based on timely responsiveness and providing services to the City at the highest level of our professional field. City Council Regular Meeting - Page 152 of 268 Valuation Study of the  Water and Sewer Systems    11 4. Experience  The proposed Willdan project team has been involved in a variety of projects which include valuation and appraisals,  regionalization studies, mergers and acquisitions, and establishment of utilities. Shown below are client references  pursuant to the City’s RFP. Additional references are available upon request.    Town of Queen Creek, AZ | Valuation and Financial Feasibility Services  The Town of Queen Creek, Arizona retained Willdan to conduct a utility acquisition analysis for a neighboring private  water and sewer utility. The study included an evaluation of the cost of additional infrastructure required to meet  municipal water and sewer treatment practices, an evaluation of the utilities’ abilities to meet ongoing operational  costs based on the existing rates, and any efficiencies to be achieved through Town operation of the systems.  Anticipated debt financing costs were included in the analysis to identify the feasibility of operating financially viable  water and sewer systems. The utility systems were valued under three different approaches, the cost‐based method,  income‐based method and market/comparable sales to identify a reasonable value of the water and sewer systems  under consideration for acquisition by the Town. Project completed on schedule and within budget.  Client Contact:    Scott McCarty, CPA, Finance Director  22358 South Ellsworth Road, Queen Creek, AZ  85142  T#: (480) 358‐3170; Email: scott.mccarty@queencreek.org  Project Manager:  Tara Hollis, CPA, MBA  Year Completed:  2018   Size (Asset Value): $191.7 million   Project Budget: $104,000    Village of Oakwood, IL | Utility System Valuation and Sales Services  Project team members were hired by the Village of Oakwood to provide utility valuation and utility sales services. The  Village’s system was very old and facing a $3 million compliance issue, with rates below the cost to provide service,  and being subsidized by the General Fund. Project team members prepared a USPAP compliant valuation report that  utilized the cost, income, and comparable sales approaches. This report valued all three components to value including  tangible real property (land), tangible personal property (system assets, CIAC, etc.) and intangible property (goodwill,  going concern, contracts, etc.)   Once the valuation was complete, project team members worked with Village staff to solicit and review bids to  purchase the system. In order to complete the transaction, project team members coordinated with and made  presentations  to  the  Illinois  Commerce  Commission  and  the  Illinois  Environmental  Protection  Agency. Project  completed on schedule and within budget.  Client Contact:   Steve Miller, Esquire, Acton & Snyder, LLP  11 East North Street, Danville, IL  61832  T#: (217) 442‐0350; Email: smiller@acton‐snyder.com  Project Manager:  Gerald C. Hartman, PE, BCEE, ASA  Year Completed:   2014   Size (Asset Value): $2 million   Project Budget: $17,500    City Council Regular Meeting - Page 153 of 268 Valuation Study of the  Water and Sewer Systems    12 Rainbow Municipal Water District, CA | Utility Valuation Services and Capacity   Fee Review  Rainbow Municipal Water District retained Willdan to prepare conduct a utility valuation analysis on the water and  sewer assets of the District. A  USPAP Compliant  Appraisal Report was prepared  that utilized various valuation  methodologies including the income approach, cost approach, and market approach. Staff conducted a site visit and  field inspection of the utility’s above‐ground assets. Additionally, Willdan prepared a review of the District’s water and  sewer capacity fees. Project completed on schedule and within budget.  Client Contact:  Vanessa Martinez, Finance Manager   3707 Old Highway 395, Fallbrook, CA  92028  T#: (760) 728‐1178 Ext 102; Email: vmartinez@rainbowmwd.com   Project Manager:  Tara Hollis, CPA, MBA  Year Completed:  2018   Size (Asset Value): $439 million  Project Budget: $115,285    Heritage Hills Water Works Corporation and Heritage Hills Sewer Works  Corporation, NY | Utility System Valuation and Sales Services  Project team members were hired by Heritage Development Group to provide a valuation of Heritage Hills Water  Works Corporation and Heritage Hills Sewer Works Corporation utility system assets for potential sale. A USPAP  compliant report was prepared which utilized three methods of valuation. These methods included an original cost  less depreciation analysis, an income analysis and a comparable sales analysis to arrive at an opinion of value for the  Heritage Hills water and sewer systems. To develop the original cost less depreciation analysis, the replacement value  of the current assets was considered and depreciated based on the average service life of the individual components.  The second method considered for valuing the utility system was the income analysis. Utility revenues and expenses  were considered in the income analysis to develop a pro forma of future cash flows. The final valuation technique  considered in the report was the comparable sales analysis, which examined the history of similar utility acquisitions  and a value was derived by acquiring an implied purchase price for the system. The implied purchase price was based  on equivalent residential connections (ERC).    In addition to the preparation of a valuation report, Mr. Hartman and other project team members continued working  with the client to assist in facilitating the sale of the water  and  sewer  utility  systems.  This  included  soliciting  prospective purchasers, participation in sales negotiations, structuring the transaction, etc. Project completed on  schedule and within budget.  Client Contact:   Keith J. Sorensen, President, Heritage Development Group, Inc.  PO Box 873, 465 Heritage Road, Southbury, CT  06488  T#: (203) 264‐8291; Email: ksorensen@hdginc.net   Project Manager: Gerald C. Hartman, PE, BCEE, ASA  Year Completed:   2011 (Valuation) Size (Asset Value): $17.6 million  Project Budget: $45,000    City Council Regular Meeting - Page 154 of 268 Valuation Study of the  Water and Sewer Systems    13 City of Vero Beach, FL | Utility System Valuation Analysis  Project team members prepared a valuation report for the City of Vero Beach to determine the approximate value of  the water, wastewater, and reclaimed water systems. The valuation included a value for the entire system as well as  a value for two fractional components: mainland unincorporated areas and within the City limits on both the mainland  and beach areas. At the time of the valuation, the City was providing service to approximately 22,992 water Equivalent  Residential  Connections  (ERCs)  and  16,231  wastewater  ERCs.  Services  included  acquiring  historic  background  information and documentation, performing field inspections, and asset verifications. Three methodologies were used  in the final report which included the cost approach, income approach, and comparable sales approach.    The  report  provided  a  description  of  the  water,  wastewater,  and  reclaimed  water  facilities  based  on  field  investigations, operation and maintenance manuals, overall utility maps, permits, previous engineering data, and  operating personnel. The report included a replacement cost less depreciation analysis, which depreciated system  components based on average component service lives. As part of this analysis, the asset records of the utility were  used to prepare an inventory listing for any potential sale of the system. This listing included all of the assets to be  transferred  in  the  event  of  a  sale  of  the  system  as  well  as  quantity,  replacement  cost  new  and  accumulated  depreciation based on age and the condition assessment performed.  A pro forma analysis was performed to determine the future earning potential of the utility based on revenues and  expenses.  The  comparable  sales  analysis  included  a  selection  of  comparable  utility  sales  from  the  company  comparable sales database of similar systems within the region. These selections were based on an ERC to establish  an implied purchase price for the utility systems.  Additionally, the report included an analysis of the economic and financial impacts to the City and the General Fund  as a result of the potential sale of the systems. Project completed on schedule and within budget.  Client Contact:   Robert J. Bolton, PE, Water and Sewer Administration  PO Box 1389, Vero Beach, FL  32961  T#: (772) 978‐5220; Email: rbolton@covb.org   Project Manager:  Tara L. Hollis, CPA, MBA  Year Completed:   2011   Size (Asset Value): $105.9 million   Project Budget: $94,200  Village of Glenview, IL | North Maine Utilities Valuation Services  In 2014, Hartman Consultants, LLC with the support of other project team members worked with the Village of  Glenview to provide valuation services including: RFP assistance including review of submittals and ranking report and  presentation to closed Village Council negotiation meetings; contract draft for water supply and water allocations;  interlocal  agreements;  agreements  to  perfect  the  system;  financial  analysis  and  feasibility  analysis;  community  impacts analysis; accounting reworking and asset verification; CIP formulation and integration; rate negotiations;  Illinois Commerce Commission coordination; appraisal reviews of three appraisal reports; Fairness Opinion Report;  debt defeasance assistance; appraiser letters on the components of value, delineation of the comparable sales to be  considered, cost approach aspects and income approach aspects; and public hearings and presentations. This was a  $32 million transaction ($22 million payment and $10 million required CIP). Project completed on schedule and within  budget.  Client Contact:   Amy L. Ahner, AICP, GISP; Director, Administrative Services Dept  1225 Waukegan Road, Glenview, IL  60025  T#: (847) 724‐1700; Email: aahner@glenview.il.us   Project Manager:  Gerald C. Hartman, PE, BCEE, ASA  Year Completed:   2014   Size (Asset Value): $32 million   Project Budget: $37,500  City Council Regular Meeting - Page 155 of 268 Valuation Study of the  Water and Sewer Systems    14 5. Timeline    The project schedule below shows the estimated timeline for completion of the water and sewer system valuation  study. It is anticipated the project will be awarded in February 2019. Based on that assumption and the availability of  data, Phase I is anticipated to be completed by the end of July 2019, with a final presentation to the City Council to be  scheduled in August 2019. The actual timeline may be altered and/or finalized during the initial kick‐off meeting based  on the needs of the City. Shown below is the estimated timeline.       City Council Regular Meeting - Page 156 of 268 Valuation Study of the  Water and Sewer Systems    15 6. Qualifications of Proposed Personnel  This team of senior‐level consultants has worked on numerous projects and can provide the City with the expertise,  experience  and  skill  set  to  successfully  complete  the  project. The  Willdan  Team  consists  of  four  senior‐level  professionals with additional staff assistance used as needed. A brief description of the professional qualifications the  Willdan team offers to the City are outlined below. Detailed resumes for each project team member have been  provided on the pages that follow.  Project Manager – Ms. Tara Hollis, CPA, MBA, has over 20 years of consulting experience and has worked on more  than 150 utility system valuation and appraisal studies, as well as numerous utility sales transaction assignments.  She will serve as the project manager and will perform the financial analysis using various techniques including the  cost approach, income approach and comparable sales approach. She has developed detailed financial forecasts and  cash flow models to be used in utility acquisition assistance including contract negotiations, transitional, transactional,  and  financial  feasibility  analysis.  Additionally,  Ms.  Hollis  is  currently  pursuing  the  Certified  Valuation  Analyst  designation from the National Association of Certified Valuators and Analysts.  Senior Utility Appraiser – Mr. Gerald Hartman, PE, BCEE, ASA, is proposed to serve as the senior utility appraiser for  this assignment. He and select members of the proposed project team recently worked on assignments for clients  including the City of Vero Beach, FL; Hillsborough County, FL; Tupelo Water & Light, MS; and Heritage Hills, NY. Mr.  Hartman is 1 of only 16 Accredited Senior Appraisers with the Machinery and Technical Specialty‐Public Utilities from  the American Society of Appraisers nationwide. Mr. Hartman, also a seasoned professional engineer with licenses in  over 20 states, has over 41 years of utility appraisal and valuation experience. He is the author and/or co‐author of  30 papers in the water, sewer and solid waste areas and the co‐author of 2 books. His extensive experience in the field  of utility acquisitions provides a very unique perspective on many issues facing utilities today. Mr. Hartman has been  involved  in  over 400  valuation,  appraisal  and  acquisition  projects  and  has  served  as  the  lead  negotiator  on  approximately 100 of these projects.  Principal‐in‐Charge – Mr. Jeff McGarvey will serve as the principal‐in‐charge and be responsible for Willdan’s quality  control/quality assurance program. With over 26 years of experience, Mr. McGarvey has provided professional  consulting services to municipal water, wastewater, solid waste, electric, and natural gas utilities throughout the  country. He possesses a broad range of municipal utility systems experience: including special expertise in complex  alternatives  analyses,  utility  rate  analyses,  utility  valuations  and  acquisitions,  regionalization  and  consolidation  studies, debt issuance support, such as the preparation of financial feasibility analyses associated with revenue bond  issuance,  capital  financing  analyses,  strategic  planning,  rate and  regulatory  assistance,  and  instituting  financial  mechanisms to provide the sufficient recovery of operating and capital costs.  Engagement Director – Mr. Tyrone Peter, PE will serve as the engagement director for this assignment. He is an  accomplished civil engineer for multi‐discipline and multi‐agency infrastructure projects and is known for providing  innovative,  quality  engineering  services  to  ensure  project  delivery  within  budget  and  schedule.  Mr.  Peter's  comprehensive  experience  includes  design  of  state  highway,  new street,  street  widening,  street  realignment,  pavement rehabilitation, light rail and railroad, grade separation, flood control facility, water, and sewer projects. He  has supervised feasibility study, project study report, project report, construction document preparation as well as  grade certification issuance, construction administration, and construction inspection. He is proficient at managing  large project teams with subconsultants and multiple technical disciplines.   Technical Support – Mr. Larry D. Brown, RCI possesses over 32 years of construction administration and inspection  services experience. His field experience includes drainage facilities, railroad grade crossings, highway and landscape  improvements, traffic signals and signing projects, and underground utility construction, as well as commercial and  residential development projects. Mr. Brown served as Public Works Observer for the Cities of Hesperia, Moreno  Valley, and Temecula, and was responsible for review of plans and specifications prior to construction, to ensure  City Council Regular Meeting - Page 157 of 268 Valuation Study of the  Water and Sewer Systems    16 compliance with city standards. He also conducted field observations of the improvements. Mr. Brown’s construction  administration experience includes: coordinating activities with contractors, utility companies, and other agencies;  processing change orders, progress payments, and other construction documents; investigating citizen complaints,  and resolving field problems; and reviewing plans, specifications, and estimates packages for compliance with city  standards.  Resumes  Detailed resumes for each project team member are included on the following pages.   City Council Regular Meeting - Page 158 of 268 Valuation Study of the  Water and Sewer Systems    17 Education  Master of Business  Administration, University  of Central Florida  Bachelor of Science,  Business Administration,  Central University of  Florida  Certifications  C.P.A. Florida, No. AC‐ 0031100  Areas of Expertise  Rate Studies  Revenue Bonds  Capital & Financial  Planning  System Development Fee  Studies  Utility Valuations  Acquisitions & Mergers  Expert Witness Testimony  Utility Optimization  Services  Papers, Publications and  Presentations  “Financial Forces  Impacting Utility Systems”  – Presented at the Growth  and Infrastructure  Consortium Conference in  Florida  “Financial Sustainability  as a Basis for Utility  Management” –  Presented at the South  Carolina Rural Water  Association Conference  “Financial Forces  Impacting Small Utility  Systems” – Presented at  the AWWA Section  Conference in Indiana  22 Years’ Experience  Tara L. Hollis, CPA, MBA  Project Manager    Ms. Hollis is a Principal Consultant with Willdan Financial Services and has more than 20 years of  experience. She resides in the firm’s Orlando, Florida office and has provided consulting services  throughout the southeast and across the country. Ms. Hollis has provided utility rate, financial,  economic and capital planning services for water, wastewater, stormwater, reclaimed water, solid  waste  and  electric  utility  systems.  She  specializes  in  rate  and  cost‐of‐service  studies,  capital  planning, feasibility and financial reports, debt structuring analyses for the issuance of utility  indebtedness, and valuation studies for mergers or acquisitions.  Rate and Cost‐of‐Service Studies – Ms. Hollis has extensive experience in utility rates and cost‐of‐ service studies, having prosecuted more than 100 studies. Such experience generally relates to  performing budget analyses, customer and usage analyses, development of revenue requirements,  cost‐of‐service allocations and sensitivity analyses related to the implementation of rate structures  designed to promote desired usage characteristics. It should also be noted that Ms. Hollis has  prosecuted over 30 system development fee studies throughout the course of her career.  Revenue Bonds, Feasibility Analyses and Capital Funding – Ms. Hollis has been involved in the  preparation of Bond Resolutions, Official Statement Financial Feasibility Reports, Certificates of  Compliance,  Additional  Bonds  Test  certificates,  and  other  related  documents  in  support  of   $1 billion of long‐term indebtedness. The funding proceeds have been utilized for such purposes  as utility acquisitions, expansion of facilities and various other capital improvement needs. In  addition, she has developed capital funding strategies utilizing various combinations of bonds, bank  loans, government assistance loans (i.e. State Revolving Funds) and grants. She also has extensive  experience related to reviewing and analyzing compliance with bond covenant requirements and  contractual obligations.  Utility System Valuations – Ms. Hollis has conducted over 150 valuation studies using various  techniques including the cost approach, income approach, and comparable sales approach for  water, wastewater, and electric utility systems. She has developed detailed financial forecasts and  cash  flow  models  to  be  used  in  utility  acquisition  assistance  including  contract  negotiations,  transitional, transactional, and financial feasibility analysis. Additionally, Ms. Hollis is currently  pursuing the Certified Valuation Analyst designation from the National Association of Certified  Valuators and Analysts.     City Council Regular Meeting - Page 159 of 268 Valuation Study of the  Water and Sewer Systems    18 Education  Bachelor of Science,  Business Administration,  University of Central Florida  Areas of Expertise  Rate & Cost‐of‐Service  Studies  Rate Design Alternatives  Analyses  Dynamic Computer  Modeling  Capacity Fee Studies  Revenue Bonds  Capital & Financial Planning   Acquisitions & Mergers   Utility Valuations  Long Term Strategic  Planning  Papers, Publications and  Presentations  “Renewal and Replacement  Costs: How Much is  Enough?” Presented at the  AWWA/WEF Utility  Management Conference  “Wall Street’s Perception of  North Carolina Water and  Sewer Utilities: Positioning  for Success,” Presented at  the North Carolina AWWA‐ WEA Annual Conference  “Financial and Economic  Impacts of EPA/DEQ  Initiatives to Reduce  Sewage Overflows,”  Presented at the Water  Environment Federation  Water Jam Conference  26 Years’ Experience  Jeffrey J. McGarvey  Principal‐in‐Charge and Quality Control/Quality Assurance    Mr. McGarvey is a Vice President in Willdan’s Financial Consulting Services group and resides in the  firm’s Orlando, Florida office. For more than 26 years, he has provided professional consulting  services to municipal water, wastewater, solid waste, and electric utilities throughout the country.  He possesses a broad range of experience, including special expertise in complex alternatives  analyses; utility rate analyses; utility valuations and acquisitions; regionalization and consolidation  studies; debt issuance support; capital financing analyses; strategic planning; rate and regulatory  assistance; and instituting financial mechanisms to provide the sufficient recovery of operating and  capital costs.  Rate and Cost‐of‐Service Studies – Mr. McGarvey has extensive experience in utility rates and cost‐ of‐service  studies,  having  prosecuted  more  than 150  studies throughout  the  country.  Such  experience  generally  relates  to  performing  budget  analyses,  customer  and  usage  analyses,  development of revenue requirements, cost of service allocations and sensitivity analyses related  to the implementation of rate structures designed to promote desired usage characteristics. It  should also be noted that Mr. McGarvey has prosecuted over 40 System Development Fee Studies  throughout the course of his career.  Revenue Bonds, Feasibility Analyses and Capital Funding – Mr. McGarvey has been involved in the  preparation of capital financing plans and financial feasibility studies associated with the issuance  of over $1 billion in municipal revenue bonds. The funding proceeds have been utilized for such  purposes as utility acquisitions, expansion of facilities and various other capital improvement  needs. In addition, he has developed capital funding strategies utilizing various combinations of  bonds, bank loans, government assistance loans (i.e. State Revolving Funds) and grants. He has also  made numerous presentations on behalf of clients to various bond insurers and rating agencies  (Moody’s, Standard & Poor’s, and Fitch).  Business and Strategic Planning – Mr. McGarvey has experience in developing complex financial  and economic evaluation models for water, wastewater, solid waste, and electric utility systems  located throughout the country. Such experience generally relates to the development of business  and strategic plans as well as performing structured alternatives analyses and sensitivity analyses  related  to  the  evaluation  and  implementation  of  system  modifications  such  as  service  and  operational changes as well as planning for customer growth and capital expenditures. City Council Regular Meeting - Page 160 of 268 Valuation Study of the  Water and Sewer Systems    19 Education  Master of Science,   Duke University  Bachelor of Science,  Duke University  Registrations  /Certifications  Arizona No. 28939  Colorado No. 31200  Florida No. 27703  Georgia No. 17597  Illinois No. 062‐053100  Indiana No. 10100292  Kentucky No. 22463  Louisiana No. 30816  Maine No. 10395  Maryland No. 12410  Mississippi No. 12717  Nevada No. 20259  New Mexico No. 15990  New York No. 088623‐1  North Carolina EIT  No. A03351  North Carolina No. 15264  Ohio No. 70152  Pennsylvania No. 38216  South Carolina 15389  Tennessee No. 105550  Virginia No. 131184  W. Virginia No. 21803  Washington No. 53433  Gerald C. Hartman, PE, BCEE, ASA  Senior Utility Appraiser  Mr. Hartman is an experienced utility engineer and appraiser with over 43 years’ experience  specializing in utilities and systems. He is a qualified expert witness in the area of utility system  valuation  and  financing,  facility  siting,  certification  /  service  area  /  franchises;  and  formation/creation, management and acquisition projects. Mr. Hartman is accepted in various  Federal Courts, Circuit Courts, Division of Administrative Hearings, Public Service Commissions,  arbitration, and quasi‐judicial hearings conducted by cities and counties, as a technical expert  witness  in  the  areas  of  utility  systems  (water,  wastewater,  stormwater,  solid  waste,  gas  and  electric), certification/service area/franchises, facility planning, utility conveyance, transmission  and distribution, utility resources, utility treatment, engineering, permitting and regulations, utility  system design and construction, and utility systems valuation (water, wastewater, stormwater,  solid waste, gas, and electric systems), costing and damages. Mr. Hartman is Professional Engineer  licensed in over 20 states and holds the Accredited Senior Appraiser designation from the American  Society of Appraisers.  Financial Reports – Mr. Hartman has been involved in over 300 capital charge, impact fee and  installation charge studies involving water, wastewater and fire service for various entities. He also  has participated in over 150 user rate adjustment reports. Mr. Hartman assisted in the development  of bond issues, short‐term bank loan systems, general obligation bonds, numerous grant/loan  programs, numerous capacity sale programs, and 20 privatization programs. He has been involved  in over $3 billion in utility bond and commercial loan financings for water and wastewater utility,  and over $4 billion in utility grants, matching funding, cost‐sharing; State Revolving Fund (SRF) loans  and federal loans (R.D., etc.), assessments and CIAC programs.  Utility Appraisals, Valuations and Evaluations – Mr. Hartman has been involved in some 600 utility  negotiations, valuations and evaluations, and has been a qualified expert witness by the courts  with regard to utility, arbitrations and condemnation cases. He has participated in the valuation of  numerous utility systems. This experience is outlined in the table that follows.   Year Project Party Represented  2018  Sandy Springs Water (Ongoing)    Buyer  2018 Aquarina; Water and Wastewater (Ongoing) Seller  2018  Black Bear Water Company (Ongoing) Owner  2018 Rockwell Utilities; Water and Wastewater Buyer  2018  Village of Avon; Water and Wastewater (Ongoing)    Buyer  2018 Granite City; Wastewater (Ongoing)   Buyer  2018  City of Alton; Wastewater    Buyer  2018 Village of Sidney, IL   Seller  2018  Village of Godfrey, IL  Buyer  2018 Village of Swansea Value Consulting, IL (Ongoing) Buyer  2018  Village of Shilo, IL  Buyer  2018 Village of Grant Park, IL Buyer  2018  Village of Odell, IL  Buyer  2018 Village of Glasford, IL Buyer  2018 JEA Value Consulting; Water, Wastewater, Electric  and Chilled Water JCC  2018 Marion Utilities, Inc. Value Consulting Owner  2018  Wrightsville Beach Well Acquisition  City/Owner  City Council Regular Meeting - Page 161 of 268 Valuation Study of the  Water and Sewer Systems    20 G. Hartman  Resume Continued  Registrations  /Certifications    Wisconsin 32971‐6  NCEES National P.E.   No. 20481  American Society of  Appraisers Accredited  Senior Appraiser No. 7542  BCEE from American  Academy Certificate No.  88‐10034  Areas of Expertise  Management Consulting  Utility System Valuation  Expert Witness Services  Rates, Fees, and Charges  Funding and Financing  Utility Certifications,  Franchises, Service Areas  Economic Evaluations  Creditworthiness Analysis  Fairness Opinions  Water/Wastewater  Systems  Appraisals  Electric System Appraisals    Year Project Party Represented  2018 CA Confidential (Ongoing) Owner  2018 Charnock  Wells  #9  and  #10,  Santa  Monica,  CA  (Ongoing)  Owner  2017 Grand Tower Energy Center, IL 1/1/2016 County  2017  Turner Shoals Hydroelectric GS, NC  Buyer  2017 Tymber  Creek  Utilities;  Water  and  Wastewater  (Ongoing) Seller  2017  Village of Thomasboro, IL  Buyer  2017 I‐20 Condemnation – SC (Ongoing) Seller  2017  IL Alton; Wastewater  Buyer  2017 IL Manteno; Wastewater Buyer  2017  City of Farmington, IL; Water  Buyer  2017 Jerseyville, IL; Water and Wastewater Buyer  2017  Skyline, IL; Water and Wastewater  Seller  2017 Claremont, CA; Water (Condemnation) Seller  2017  Village of Petone, IL; Water and Wastewater  Village/Buyer  2017 Village of Tolano, IL; Water and Wastewater Owner  2017  OTUC IRS Donation (Transfer), FL  Owner  2017 Eight  Illinois  Villages/Cities  (Consideration/  Negotiations) Buyers/Sellers  2017  Sundale Utilities, IL  Buyer  2017 SC Confidential Owner  2017  Ojai, CA; Water (Condemnation)  Owner  2017 ARM Electric (Confidential) Owner  2017  FHMPWS Cottage Hills, IL  Buyer  2017 Village of Fisher; Water and Wastewater Village  2016  York County, SC (Transmission)  County  2016 Condemnation Electric Owner  2016  North and West Ormond Utility  Buyer/Seller  2016  Gold Coast Utility Authority (Ongoing)  Buyer/Seller  2016 Rainbow, MWD, CA; Water and Wastewater District  2016  Lake Adger WR & IM, NC – Water Supply Value  County  2016 7 Systems Jefferson County, WV Authority  2016  Cauley Creek WRF (IRS)  Seller  2016 Village of Sadorus – IAWC Buyer/Seller  2016  Bushnell/SECO Electric (Arbitration)  City  2016 Celina SA Buyer  2016  OTUC W7WW Systems (Partial)  Owner  2015 City of Fairbanks 8 MGD/22 MGD WRF Buyer  2015  Village of Ransom Water System  Buyer  2015 Vulcan/FL Rock 1/1/2011 ACPA  2015  Crystal Clear Water Company  Buyer  2015 5‐Service Areas Mustang SUD & 1 Water System City Consultant  2015 Bayou  Cove  Peaking  Power  Plant  1/1/2015  TPP  Appraisal Parish  2015 Bayou Cove Peaking Power Plan 1/1/2014 TPP Parish  2015  Bayou Cove Peaking Power Plan 1/1/2013 ARM‐TPP  Owner  2015 Peoples (Condemnation) Private  City Council Regular Meeting - Page 162 of 268 Valuation Study of the  Water and Sewer Systems    21 G. Hartman  Resume Continued  Relevant Training/Courses  Numerous AWRA, AWWA,  ASCE, WEF, AASE, ASA,  NSPE, PE Seminars,  Courses, Ethics,  Continuing Education  (multiple states)  USPAP Exams 2003, 2005,  2010, 2015, 2017  ASA ME201, ME202,  ME203, ME204 Mach. &  Technical Specialties,  BV201 Public Utilities,  PP201   ASA Public Utilities  Specialty Designation  Exam Parts I, II, and III  Numerous  Technical Appraisal  Courses/Exams in  personal property  (tangible & intangible),  business valuation, and  other areas  Appraisal Review &  Management ARM 201  and 204 Average Service  Life and Effective Age  Depreciation  Terminal Value  Taxation/IRS Valuation  Affiliations  American Society of  Appraisers  American Society of Civil  Engineers  American Water Works  Association  Florida Engineering  Society  National Society of  Professional Engineers  Water and Environment  Year Project Party Represented  2015  Kessler AFB  Private  2015 Eastwood Manor Private  2015  NUNDA Utilities  Private  2015 Manalapan/Hypoluxo City  2015  Royal Manor W&WW  City  2015 Beverly Hills Waste Management Co., FL Bank  2015  O’Fallon Utilities, Value Consulting  Private  2015 Mt. Vernon Utilities, Value Consulting Private  2015  Tupelo/Verona Water  Both Cities  2015 Confidential (Condemnation) Confidential  2015  Rolling Oaks Utilities  Bank  2015 Village of Arthur Village  2015  NFP  NFP  2015 MS Water Systems Annex City  2015  Value Consulting  Confidential/  Investor  2015 KWRU – Wastewater Utility Owner  2015  New River Light and Power, NC; Electric  Owner  2014 Power Systems Value Consulting Confidential  2014  Citrus County/Duke Energy 1/1/13 TPP  County  2014 Minto Prop SID; Water, Wastewater and Reclaimed  Water District  2014  North Maine Utilities Transactions Adv. F.O.  Village  2014 3 Appraisals Review Glenview  2014  Eastlake Utilities, Inc. (Ongoing)  County  2014 Pebble Creek Utilities (Ongoing) County  2014  Mooresville Water (Condemn) ARM  Attorney  2014 Heritage Hills, NY to Corix; Water and Wastewater Owner  2014  Cauley Creek WRF    Owner  2013 Tega Cay; Water and Wastewater   Both  2013  Harrison, OH; Water  City  2013 Water Management Services   Bank  2013 North  Lee  Rural  Water  Association,  Tupelo,  MS  (Partial) City  2013 NPUC (Cost/Comp); Wastewater Bank  2013  Progress Energy Florida (Citrus County) TPP 1/1/12    County  2013 Village of Oakwood; Water/Wastewater System Village  2013  Richmond Generation Station    City  2013 Peru Generation Station   City  2013  Dover, Delaware Electric System  City  2013 C‐51 Reservoir Owner  2013  C‐25 Reservoir  Owner  2013 Eglin Air Force Base Proposer  2013  Fellsmere TTP Electric (Ongoing) City  2013 Duke Energy (Citrus County) TPP Electric 1/1/13 County  2012  Beverly Hills Waste Management  Owner  2012 Town of Belleair Town  2012  Orchid Springs Utilities  City  City Council Regular Meeting - Page 163 of 268 Valuation Study of the  Water and Sewer Systems    22 G. Hartman  Resume Continued  Affiliations  American Society of  Appraisers  American Society of Civil  Engineers  American Water Works  Association  Florida Engineering  Society  National Society of  Professional Engineers  Water and Environment  Federation  43 Years’ Experience  Year Project Party Represented  2012 Tymber Creek Utilities – Stock Transfer Owner(s)   2012  Peoples of Balstrop – (Condemnation) (ongoing)  Owner  2012 Senoia Water System County  2011  Pine Island Utility System  Owner  2011 Town of Franklinton; Water/Wastewater System Both  2011  Kill Devil Hills Wastewater Treatment Plant  Bank  2011 Chesapeake Electric Utility – Marianna, FL City  2011  City of South Daytona Electric Utility  City  2011  On  Top  of  the  World  Communities  Water,  Wastewater, and Reuse System – Marion County, FL  (Bay  Laurel  Center  Community  Development  District)  District  2011  City of Vero Beach Electric Utility  City  2011 City of Vero Beach Water, Wastewater, and Reuse  System City  2010 Rolling  Oaks  Water  and  Wastewater  System,  Beverly Hills Waste Management System (SW) Owner/Bank  2010 Liberty Water – Tall Timbers Wastewater System, TX  (Condemnation) Owner  2010  Heritage Hills Water and Sewer System, NY  Owner  2010 Waterside  Villages  of  Currituck  Waste  Water  Treatment Plant, NC District  2010 Tindall Hammock Irrigation and Soil Conservation  District Water/Wastewater System District  2010 KW Resort Utilities (Taxation) Owner  2010  Great Wolf Resort Utilities, PA  Owner  2010 Town of Indian River Shores Water and Sewer  System Assets Town  2010 City of Vero Beach Water and Sewer System Assets,  Town of Indian River Shores (Partial) City  2010 City of Griffin, GA; Water System Assets Water Authority  2010  Golden Beach Water Assets  City  2010 Thunder Enterprises, Inc. Water System Assets, AL  (Condemnation) Owner  2010  River Forrest, SC  Both  2010 Stonecreek, SC Both  2010  Fearington Utilities  NFP  2009  On  Top  of  the  World  Communities  Water,  Wastewater, and Reuse System – Marion County, FL  (Bay  Laurel  Center  Community  Development  District)  District  2009  Aquarina Water and Wastewater  Bank  2009 Cocoa Beach; Electric City  2009  Parkland Utilities  Owner  2009 GISTRO NFP  2009  Fruitland Park (Electric)  City  2009 Town  of  Golden  Beach  Water  and  Wastewater  System City  City Council Regular Meeting - Page 164 of 268 Valuation Study of the  Water and Sewer Systems    23 G. Hartman  Resume Continued  Year Project Party Represented  2008  Park Water Company  City  2008 Crooked Lake Sewerage Company City  2008  Vanguard Wastewater System  City  2008 Traxler Enterprises City  2008  Louisiana Land and Water Company  Owner  2008 Sandy Creek Water and Wastewater County  2008  Bayside Water and Wastewater  County  2008 Fern Crest Utilities, Inc. Buyer  2008  Turnpike Utilities, LLC – W/S North Carolina  Owner  2008 Nags Head, Moneray Shores, Currituck Sewer,  Corollo #1 & #2 Buyer  2008  Service Management Systems, Inc.  Bank  2008 Slash Creek Utility System Owner  2008  Kill Devil Hills Utility Company  Owner  2008 Orchid Springs Utilities City  2008  City of North Miami Beach – Utilities  Owner  2007 Pine Island Water System Owner  2007  Pine Island Currituck Sewer  Owner  2007 Gulf Coast Electric Cooperative County  2007 Marion Utilities, Sunshine Utilities and Windstream  Utilities County  2007 Ocean Reef/NKLUA/Card Sound I.Q. FKAA  2007  Irish Acres  County  2007 I‐20 Systems South Carolina Owner  2007  Town & Country Update  Owner  2007 Service Management Systems, Inc. C.B. Ellis  2007  Bulow Village Resort  County  2007 Intercoastal Utilities Owner  2006  Donaldsonville/Peoples Utilities  Owner  2006 MSM Utilities, Inc. Owner  2006  BSU/Citrus Park  Owner  2006 Jasmine Lakes and Palm Terrace City  2006  The Arbors  County  2006 Oak Centre County  2006  Silver Oaks Estates  County  2006 Regal Woods County  2006  Golden Glen  County  2006 Willow Oaks County  2006  South Oak  County  2006 Gulf State Community Bank – Utility Holdings Bank  2006  Rolling Green  County  2006 South 40, Citrus Park and Raven Hill County  2006  Holiday Utility Company, Inc.  Bank  2006 Old Bahama Bay Management  2006  Utility Consolidation Program  County  2006 Loch Harbor Water & Wastewater System Owner  2005  Lake Wales Utility Company  Bank  2005 Pennichuck Water Company Confidential  City Council Regular Meeting - Page 165 of 268 Valuation Study of the  Water and Sewer Systems    24 G. Hartman  Resume Continued  Year Project Party Represented  2005  K.W. Resort Utilities, Inc.  Confidential  2005 Water Management Services, Inc. Owner  2005  Town and Country Utility Co.  Confidential  2005 Village of Royal Palm Beach Village  2005  Orange/Osceola/Lake/Seminole Counties  Confidential  2005 Utilities, Inc. (Partial) (Condemnation) Owner  2005  Village of Royal Palm Beach  Village  2005 Bald Head Island Utilities, Inc. Village  2005  Broward County  Confidential  2005 Burkim Enterprises, Inc. (Condemnation) Owner  2005 Lyman  Utilities,  Inc.  Harrison  County,  MS  (Condemnation) Owner  2004 Quail Meadow Utility Company County  2004  Silver Springs Shores Regional  County  2004 Matanzas Shores County  2004  El Dorado Utilities, NM (Condemnation)  Owner  2004 CDF to City of Tupelo, MS CDF  2004  Pesotum, IL – IAWC  Village  2004 Philo, IL – IAWC Village  2004  Central Florida  Confidential  2004 Skyview City  2004  Polk Utilities  NFP  2004 St. Johns Services Company County  2004  Intercoastal Utilities Company  County  2004 Stonecrest Utilities County  2004  Meredith Manor  County  2004 Lake Harriet Estates County  2004  Lake Brantley  County  2004 Fern Park County  2004  Druid Hills  County  2004 Dol Ray Manor County  2004  Apple Valley  County  2004 Kingsway Utility Area County  2004  Lake Suzy Utilities (water portion)  County  2004 Sanibel Bayous Wastewater Corporation City  2004  Ocean City Utilities  FCURIA/County  2004 People’s  Water  of  Donaldsonville,  LA  Condemnation) Owner  2003  Harmony Homes  County  2003 Florida Central Commerce Park County  2003  Chuluota  County  2003 District 3C (Miramar portion) City  2003  Lincoln Utilities/Indiana Water Service  Owner  2003 Gibsonia Estates City  2003  Lake Gibson Estates  City  2003 Jungle Den Utilities Association  2003  Holiday Haven Utilities  Association  2003 Salt Springs County  City Council Regular Meeting - Page 166 of 268 Valuation Study of the  Water and Sewer Systems    25 G. Hartman  Resume Continued  Year Project Party Represented  2003  Smyrna Villas  County  2003 South Forty County  2003  Citrus Park  County  2003 Spruce Creek South County  2003  Spruce Creek  County  2003 Spruce Creek Country Club Estates County  2003  Longwood Franchise; Electric  City  2003 Casselberry Franchise; Electric City  2003  Apopka Franchise; Electric  City  2003 Winter Park Acquisition; Electric City  2003  Stonecrest/Steeplechase  County  2003 Marion Oaks County  2003  Kingswood Utilities  County  2003 Oakwood Utilities County  2003  Sunny Hills Utilities  Confidential  2003 Interlachen Lake/Park Manor Confidential  2003  Tomoka/Twin Rivers  Confidential  2003 Beacon Hills Buyer  2003  Woodmere  Buyer  2003 Bay Lake Estates City  2003  Fountains  City  2003 Intercession City City  2003  Lake Ajay Estates  City  2003 Pine Ridge Estates City  2003  Tropical Park  City  2003 Windsong City  2003  Buenaventura Lakes  City  2002 Lelani Heights Utilities County  2002  Fisherman Haven Utilities  County  2002 Fox Run Utilities, Inc. County  2002  Ponce Inlet  City  2002 Amelia Island Utilities City  2002  Florida Public Utilities (Condemnation)  City  2002 AquaSource – LSU County  2002  Park Place Utility Company, GA  Owner  2002 Kingsway Utility System Owner/County  2002  Pennichuck Water Company, NH  City  2002 Philo Water System, IL Village  2002  Pasco County – 2 systems  County  2002 Marion Consolidation – 10 systems County  2002  Sugarmill (Condemnation)  UCCNSB  2002 Deltona Conference  2002  Palm Coast  FCURIA  2002 Bald Head Island Utilities, NC Village  2002  White’s Creek – Lincolnshire, SC (Condemnation)  Owner  2002 Bluebird Utilities, Tupelo, MS NFP  2001/02  Due Diligence – 260 systems (VA, NC, SC)  Buyer  2001 Shady Oaks County  City Council Regular Meeting - Page 167 of 268 Valuation Study of the  Water and Sewer Systems    26 G. Hartman  Resume Continued  Year Project Party Represented  2001  Davie/Sunrise  City  2001 Lindale Utilities County  2001  Aquarina  Owner  2001 Intercoastal Utilities County  2001  Beverly Beach  City  2001 Citrus County Utility Consolidation Plan (numerous) County  2001  Pasco County Utility Acquisition Plan (numerous)  County  2001 Skylake Utilities City  2001  Town of Lauderdale‐By‐The‐Sea  Town  2001 John Knox Village City  2001  Silver Springs Regional  County  2001 DeSoto Countywide FWSC Franchise and Assets County  2001  Zellwood Station Co‐Op  Co‐Op  2001 Palm Cay County  2000  The Great Outdoors  Owner  2000 Destin Water Users City  2000  Pine Run  County  2000 Oak Run County  2000  Dundee Wastewater (partial)  City  2000 Polk City Water City  2000  A.P. Utilities (2 systems)  County  2000 CGD Utilities Bank  2000  Boynton Beach (partial)  City  2000 Aqua‐Lake Gibson Utilities City  2000  Bartelt Enterprises, Ltd. (2 systems)  Owner  2000 49 ‘Ner Water System, Tucson, AZ (Condemnation) Owner  2000  Stock Island Wastewater and Reuse System  Owner  1999 Osceola Power Station (Electric) Owner  1999  Okeelanta Power Station (Electric)  Owner  1999 Del Webb (3 systems) County  1999  Destin Water Users Co‐Op  City  1999 O&S Water Company City  1999  Rolling Springs Water Company  County  1999 ORCA Water & Solid Waste Authority  1999  Marianna Shores Water and Wastewater  City  1999 Mount Olive Utilities City  1999  AP Utilities (3 systems)  County  1999 Tangerine Water Association City  1999  Laniger Enterprises; Water and Wastewater  Bank  1999 IRI golf Water System, AZ (Condemnation) Investor  1999  South Lake Utilities  City  1999 St. Lucie West CDD City  1999  Polk City/Lakeland  City  1999 Dobo System, Hanover County, NC County  1999  Rampart Utilities  County  1999 Garlits to Marion County County  1998  Golf and Lake Estates  City  1998 Sanibel Bayous/E.P.C. City  City Council Regular Meeting - Page 168 of 268 Valuation Study of the  Water and Sewer Systems    27 G. Hartman  Resume Continued  Year Project Party Represented  1998  Tega Cay Utility Company, SC  City  1998 Marlboro Meadows, MD (Condemnation) Owner  1998  Sugarmill Water and Wastewater/Volusia County  UCCNSB  1998 SunStates Utilities, Inc. Owner  1998  Town of Hope Mills/FPWC, NC  Town  1998 River Hills, SC County  1998  Town of Palm Beach  Town  1998 K.W. Utilities, Inc. Buyer  1998  Orange Grove Utility Company, MS (Condemnation)  Owner  1998 Garden Grove Water Company City  1998  Sanlando Utilities, Inc.  County  1997 Golden Ocala Water and Wastewater System County  1997 Holiday  Heights,  Daetwyller  Shores,  Conway,  Westmont County  1997 University Shores County  1997  Sunshine Utilities  County  1997 Bradfield Farms Utility, NC Owner  1997  Palmetto Utility Corporation  Owner  1997 A.P. Utilities County  1997  Village of Royal Palm Beach  Village  1997 Jasmine Lake Utilities Corporation Lender  1997  Arizona (confidential)  Owner  1997 Village Water Ltd., FL Owner  1997  N.C. System – CMUD (3 systems)  Owner  1997 Courtyards of Broward City  1997  Miami Springs  City  1997 Widefield Homes Water Company, CO Company  1997  Peoples Water System  ECUA  1997 Quail Meadows, GA County  1997  Rolling Green, GA  County  1996 Keystone Heights City  1996  Buchannan  Owner  1996 Keystone Club Estates City  1996  Lakeview Villas  City  1996 Geneva Lakes City  1996  Postmaster Village  City  1996 Landen Sewer System, CMUD, NC Company  1996  Citizens Utilities, AZ  City  1996 Widefield Water and Sanitation, CO District  1996  Consolidation Program Game Plan  County  1996 Marion Oaks County  1996  Marco Shores  Company  1996 Marco Island Company  1996  Cayuga Water System, GA  Authority  1996 Glendale Water System, GA Authority  1996  Lehigh Acres Water and Wastewater, GA  Authority  1996 Lindrick Services Company Company  1996  Carolina Blythe Utility, NC  City  City Council Regular Meeting - Page 169 of 268 Valuation Study of the  Water and Sewer Systems    28 G. Hartman  Resume Continued  Year Project Party Represented  1996 Ocean Reef R.O. WTPs NKLUA  1995  Sanibel Bayous  City  1995 Rotunda West Utilities Investor  1995  Palm Coast Utility Corporation  ITT  1995 Sunshine State Parkway Company  1995 Orange  Grove  Utilities,  Inc.,  Gulfport,  MS  (Condemnation) Company  1995 Georgia Utilities, Peachtree, GA City  1995  Beacon Hills Utilities  Company  1995 Woodmere Utilities Company  1995  Springhill Utilities  Company  1995 Okeechobee Utility Authority OUA  1995  Okeechobee Beach Water Association  OUA  1995 City of Okeechobee OUA  1995  Mad Hatter Utilities, Inc.  Company  1994 Eastern Regional Water Treatment Plant Owner  1994 GDU  –  Port  St.  Lucie  Water  and  Wastewater  (Franchise/Condemnation) City  1994 St. Lucie County Utilities City  1994  Marco Island/Marco Shores  Sun Bank  1994 Heater of Seabrook, SC (Condemnation) Company  1994  Placid Lake Utilities, Inc.  Company  1994 Ocean Reef Club Solid Waste System ORCA  1994  Ocean Reef Club Wastewater System  ORCA  1994 South Bay Utilities, Inc. Company  1994  Kensington Park Utilities, Inc.  Company  1993 River Park Water System SSU/Allete  1993  Taylor Woodrow, Sarasota County (Condemnation)  Taylor Woodrow  1993 Atlantic Utilities, Sarasota County (Condemnation) Company  1993  Alafaya Utilities, Inc.  Bank  1993 Anden Group Wastewater System, PA Company  1993  West Charlotte Utilities, Inc.  District  1993 Rolling Oaks (SW) Owner  1993  Sanlando Utilities, Inc.  Investor  1993 Venice Gardens Utilities Company  1992  Myakka Utilities, Inc.  City  1992 Kingsley Service Company County  1992  Mid Clay Utilities, Inc.  County  1992 Clay Utilities, Inc. County  1992  RUD#1 (4 systems review)  Meadowoods/  Kensington Park  1992 Uddo Landfill (SW) (Condemnation) Owner  1992  Martin Downs Utilities, Inc.  County  1992 Fox Run Utility System County  1992  Leilani Heights  County  1992 River Park Water and Sewer SSU/Allete  1992  Central Florida Research Park  Bank of America  1992 Rolling Oaks Utility Investor  City Council Regular Meeting - Page 170 of 268 Valuation Study of the  Water and Sewer Systems    29 G. Hartman  Resume Continued  Year Project Party Represented  1992  City of Palm Bay Utilities  PBUC  1992 North  Port  –  GDU  Water  and  Sewer  (Franchise/Condemnation) City  1992 Palm  Bay  –  GDU  Water  and  Sewer  (Franchise/Condemnation) City  1992 Sebastian – GDU Water and Sewer City  1991  Sanibel – Sanibel Sewer System, Ltd.  City  1991 St.  Augustine  Shores,  St.  Johns  County  (Condemnation) SSU/Allete  1991  Remington Forest, St. Johns County  SSU/Allete  1991 Palm Valley, St. Johns County SSU/Allete  1991  Valrico Hills, Hillsborough County  SSU/Allete  1991 Hershel Heights, Hillsborough County SSU/Allete  1991  Seaboard Utilities, Hillsborough County  UFUC  1991 Federal Bankruptcy – Lehigh Acres Topeka/Allete  1991  Meadowoods Utilities, Regional Utility District #1  Investor  1991 Kensington Park Utilities, Reg. Utility District #1 Investor  1991  Industrial Park, Orange City  City  1991 Country Village, Orange City City  1991  John Know Village, Orange City  City  1991 Land O’Lakes, Orange City City  1990  Orange‐Osceola Utilities, Osceola County  County  1990 Morningside East and West, Osceola County County  1990  Magnolia Valley Services, Inc., New Port Richey  City  1990 West Lakeland Industrial, City of Lakeland City  1990  Highlands County Landfill (Condemnation)  Owner  1990 Venice Gardens Utilities, Sarasota County SSU/Allete  1990  South Hutchinson Services, St. Lucie County  SHS  1990 Indian River Utilities, Inc. City  1990  Coraci Landfill (SW) (Condemnation)  Owner  1990 Terra Mar Utility Company City  1989  Seminole Utility Company, Winter Springs  Topeka/Allete  1989 North Hutchinson Services, Inc., St. Lucie County NHS  1989  Sugarmill Utility Company  UCCNSB  1989 Ocean Reef Club, Inc., ORCA Company  1989  Prima Vista Utility Company, City of Ocoee  PVUC  1989 Deltona Utilities, Volusia County SSU  1989  Poinciana Utilities, Inc., Jack Parker Corporation  JPC  1989 Julington Creek Investor  1989  Silver Springs Shores  Bank  1988 Eastside Water Company, Hillsborough County County  1988  Twin County Utilities  Company  1988 Burnt Store Utilities Company  1988  Deep Creek Utilities  Company  1988 North Beach Water Co., Indian River County NBWC  1988  Bent Pine Utility Company, Indian River County  BPUC  1988 Country Club Village, SSU CCV  1987  Sugarmill Utility Co., Florida Land Corporation  FLC  City Council Regular Meeting - Page 171 of 268 Valuation Study of the  Water and Sewer Systems    30 G. Hartman  Resume Continued  Year Project Party Represented  1987 N. Orlando Water & Sewer Co., Winter Springs NOWSCO  1987  Osceola Services Company, FCS (nfp)  OSC  1987 Orange City Water Company, Orange City City  1987  West Volusia Utility Company, Orange City  City  1987 Seacoast Utilities, Inc., Florida Land Corporation FLC  1987 Utilities  Commission,  City  of  New  Smyrna  Beach  (partial SA/Assets) (Electric) Commission    As well as numerous other utility valuations in the timeframe between 1976 and 1987.  Utility Management Consulting – Mr. Hartman has been involved in utility transfers from public,  not‐for‐profit,  district,  investor‐owned,  and  other  entities  to cities, counties, not‐for‐profit  corporations, districts, and private investors. He has been involved in staffing, budget preparation,  asset  classification,  form  and  standards  preparation,  utility  policies  and  procedures  manuals/training,  customer  development  programs,  standard  customer  agreements,  capacity  sales, and other programs. Mr. Hartman has been involved in over 100 interlocal agreements with  respect to service area, capacity, service, emergency interconnects, back‐up or other interconnects,  rates, charges, service conditions, ownership, bonding and other matters.  Additionally, Mr. Hartman has assisted in the formation of newly certificated utilities, newly created  utility departments for cities and counties, new regional water supply authorities, new district  utilities, and other utility formations. For over 40 years, Mr. Hartman has been a professional  assisting in the resolution of utility issues.  Utility Finance, Rates, Fees, and Charges – Mr. Hartman has been involved in hundreds of capital  charge, impact fee, and installation charge studies involving water, wastewater, stormwater, solid  waste, gas and electric service for various entities and at the rate regulatory commissions. He also  has participated in hundreds of user rate adjustment reports.  Expert Testimony – Mr. Hartman has been accepted in various Circuit Courts, Florida Division of  Administrative Hearings, Florida Public Service Commission, arbitration, and quasi‐judicial hearings  conducted by cities and counties, as a technical expert witness in the areas of electric systems, solid  waste systems, stormwater systems, gas systems, wastewater systems and/or biosolids facilities,  water supply, facility planning, water resources, water treatment, water quality engineering, water  system  design  and  construction, wastewater  collection,  wastewater  transmission,  wastewater  treatment,  effluent/reclaimed  water  use,  sludge  processing  and disposal,  costing,  damages,  rates/charges, service and service areas, and utility systems valuation and utility systems valuation.  He has given oral testimony on some 200 occasions over the past 38 years. He has assisted in the  resolution of a similar number of matters without formal testimony.  Economic Evaluations/Credit Worthiness Analyses  Credit Worthiness Analysis for Drinking Water State Revolving Fund (1999) – Florida Department  of Environmental Regulation  Credit Rating Reviews (1980‐2000) – for numerous investor‐owned utilities; many city‐owned  utilities; many county‐owned utilities; several not‐for‐profit utilities; and utility authorities (OUA,  etc.).  Privatization Procurement and Analysis for many water and wastewater systems including Sanibel,  Town of Palm Beach, Temple Terrace, Palm Bay, Widefield, Bullhead City and sever others.  City Council Regular Meeting - Page 172 of 268 Valuation Study of the  Water and Sewer Systems    31 G. Hartman  Resume Continued  Service Areas and Negotiations – Mr. Hartman has participated in over 35 service area formations,  Chapter 25 F.S. certifications, Chapter 180.02 reserve areas, authority creations, and interlocal  service  area  agreements.  Mr.  Hartman  has  been  a  primary  negotiator  for  interlocal  service  agreements regarding capacity, joint‐use, bulk service, retail service, contract operations and many  others.   Expert Testimony – Recently, Mr. Hartman has been an expert witness on utility condemnation,  utility arbitration, water rates and use permitting DOAH case, utility rate setting DOAH case, service  area and utility service civil case, City of Atlanta Water Treatment Plant Construction, City of  Milwaukee Cryptosporidium, Jupiter vs. Tequesta Water Contract Services, Winter Park electric,  Okeelanta/Osceola Power Plants, UCCNSB and many other condemnation cases. Mr. Hartman has  been an expert witness in permitting and regulatory cases.  Mr. Hartman has given oral testimony on some 200 occasions over the past 38 years. He has  assisted in the resolution of a similar number of matters without formal testimony.  Papers/Presentations (Since 1994)  2016    “What Special Masters are Looking For”    By Gerald C. Hartman and Dr. L. Golicz, December 10, 2015    FC – IAAO – TPP Conference  2015    “Perspectives for Utility Sales – (City/Co./Auth./NFP/CDD)”    By Gerald C. Hartman, August 26, 2015    Philadelphia, PA – Business Seminar  2015    “Water Privatization and the Systems Viability Act Legislation”    Gerald C. Hartman, et al., 102nd    Illinois Municipal League Annual Conference    September 18, 2015  2014    “Financial Forces Impacting Small Utility Systems”  Hartman, G.C. and Hollis, Tara L.  2014 Indiana Section AWWA Conference, February 2014  2013  Hartman,  G.C.  “Stormwater  Reuse/Water  Harvesting,”  FL  Water  &  Environment  Association, January 24, 2013  2012  Hartman G.C., T.L. Hollis “Optimization of Utility Performance,” Florida‐CFOA.  2008  Hartman, G.C., Hollis, Tara L. and Isaacs, Tony W. “Discussion of  Outside  City  Utility  Rate  Surcharge.” Special Meeting – Various Municipality Leaders in State of Florida (Hosted by  the City of North Miami Beach and the City of North Miami). October 28, 2008.  2007  Hartman, G.C. and Wanielista, M. P. “Stormwater Reuse: The Utility Business Practice.” 9th  Biennial Conference on Stormwater Research & Watershed Management. May 2, 2007.  2005  Wanielista,  Marty  and  G.C.  Hartman,  “Regional  Stormwater  Facilities,”  Stormwater  Management for Highways Transportation Research Board TRB AFB60, July 12, 2005.  2004  Hartman, G.C., D. Cooper, N. Eckloff and R. Anderson, “Water,” The Bond Buyer’s Sixth  Southeast Public Finance Conference, February 23, 2004.  2003   Hartman, G.C., “Utility Valuation,” Wake Forest University Law School Seminar Series,  February 6‐8, 2003.  City Council Regular Meeting - Page 173 of 268 Valuation Study of the  Water and Sewer Systems    32 G. Hartman  Resume Continued  2003  Hartman, G.C., H.E. Schmidt, Jr. and M.S. Davis, “Biosolids Application in Rural DeSoto  County,  Florida,”  WEF/AWWA/CWEA  Joint  Residuals  and  Biosolids  Management  Conference, February 19‐22, 2003.   2003  Hartman, G.C. and Dr. M. Wanielista, “Irrigation Quality Water – Examples and Design  Considerations,” ASCE Conference, April 4, 2003.  2003  Hartman, G.C., M.A. Rynning and V. Hargray, “Assessing the Water Demands of Commercial   Customer,” WEF Volume 6, No. 4, July/August 2003 – Utility Executive.  2002  Hartman, G.C., M. Sloan, N.J. Gassman, and D.M. Lee, “Developing a Framework to Balance  Needs for Consumptive Use and Natural Systems with Water Resources Availability,” WEF  Watershed 2002 Specialty Conference, February 23‐27, 2002.  2000  Hartman, G.C., M.A. Rynning, and V. Hargray, “Assessment of Commercial Customer Water  Impacts,” AWWA 2000.   1999  Hartman,  G.C.  contributing  author,  Chapter  14B,  Nichols  on  Eminent  Domain,  RCNLD  Valuation of Public Utilities, March 1999 Edition, Release No. 48.  1998  Hartman, G.C., “In‐House, Outsourcing and the Not‐for‐Profit Utilities Option,” Florida  Government Finance Officers Association (FGFOA) Conference, March 27, 1998.  1998  Hartman, G.C. and D.P. Dufresne, “Understanding Groundwater  Mounds  –  A  Key  to  Successful Design, Operation and Maintenance of Rapid Infiltration Basins,” April 4‐7, 1998,  FWWA/WET/FPCOA Joint Meeting.  1998  Hartman, G.C. and Seth Lehman, “Financing Water Utilities – Acquisition and Privatization  Projects,” AWWA Annual Conference, June 24, 1998.  1997  Hartman,  G.C.,  Seth  Lehman, “Financing  Utility  Acquisitions,”  AWWA/WEF  Joint  Management Conference, February 1997.  1997  Hartman, G.C., B.V. Breedlove, “Water:  Where It Comes From and Where It Goes,” FRT &  G/FDEP Conference, September 1997.  1997  Hartman, G.C., W.D. Wagner, T.A. Cloud, and R.C. Copeland, “Outsourcing Programs in  Seminole County,” AWWA/WEF/FPCOA  Conference, November 1997.  1997  Hartman, G.C., M.B. Alvarez, J.R. Voorhees, and G.L. Basham, “Using Color  as an Indicator  to Comply with the Proposed D/DBP Rule,” AWWA, Water  Quality Technology Conference,  November 1997.  1996  Hartman, G.C., M.A. Rynning, and R.A. Terrero, “5‐Year Reserve Capacity – Can Customers  Afford the Cost?” FSASCE Annual  Meeting, 1996.  1996  Hartman,  G.C.,  T.A.  Cloud,  and  M.B.  Alvarez,  “Innovations in  Water  and  Wastewater  Technology,” Florida Quality Cities, August 1996.  1995  Hartman,  G.C.  and  R.C.  Copeland,  “Utility  Acquisitions  –  Practices,  Pitfalls  and  Management,” AWWA Annual Conference, 1995.  1995  Hartman, G.C., “Safe Drinking Water Act,” and “Stormwater Utilities,” FLC Annual Meeting,  1995.  City Council Regular Meeting - Page 174 of 268 Valuation Study of the  Water and Sewer Systems    33 G. Hartman  Resume Continued  1994  Hartman, G.C. and R.J. Ori, “Water and Wastewater Utility Acquisition,” AWWA National  Management Specialty Conference, 1994.   Books  Hartman, G.C., Utility Management and Finance, (presently under contractual preparation with  Lewis Publishing Company/CRC Press).  Vesilind, P.A., Hartman, G.C., Skene, E.T., Sludge Management and Disposal for the Practicing  Engineer; Lewis Publishers, Inc.; Chelsea, Michigan; 1986, 1988, 1991  City Council Regular Meeting - Page 175 of 268 Valuation Study of the  Water and Sewer Systems    34 Tyrone Peter, PE  Engagement Director  Mr. Tyrone Peter, PE, is an accomplished civil engineer who has worked on multiple assessment  engineering projects and specializes in infrastructure cost engineering. Mr. Peter is known for  providing innovative, quality engineering services to ensure project delivery within budget and  schedule. He has 12‐plus years of experience managing and designing various public works projects  and has a solid foundation to understand what is needed to deliver a successful project.  Mr. Peter's experience includes design of state highways, new streets, street widenings, street  realignments, pavement rehabilitations, light rail and railroad projects and he has participated in  feasibility studies, assessment engineering projects, grade separation projects, flood control facility  design and construction, and water and sewer projects. He has supervised feasibility studies,  project study reports, project reports, and construction document preparations, grade certification  issuances, construction administration projects, and construction inspections. He is proficient at  managing large project teams with subconsultants spanning multiple technical disciplines. During  his career, Mr. Peter has served as project manager, civil engineering task leader, supervising  engineer, senior engineer, design engineer and designer for over 200 projects with design contracts  ranging from $5,000 to $2.9 million.  Relevant Project Experience  Bear  Valley  Community  Services  District,  CA  –  Mailbox  Optimization  and  Revitalization  and  Formation of Assessment District: Responsible for overall project management and oversight of  services required to assist the District with the optimization and revitalization of the community's  mailboxes. The District maintains approximately 35 mailbox stations, serving approximately 3,600  property owners. The existing mailbox stations were in a dilapidated condition and convey an  impression of neglect and lack of maintenance to residents and visitors requiring constant upkeep  due to their age, condition and incidents of vandalism. Design problems also existed with the sites  of some stations; specifically, some do not have sufficient setback from the road to allow safe exit  from vehicles to pick up mail. Also lack of lighting contributes to safety and security concerns. In  addition, the constraint of the existing topographical conditions inhibited motorists’ lines of sight  making for potential safety issues. The District proposed replacing the current mailboxes with  prefabricated  16‐door,  decorative,  locking,  cluster  boxes,  which  would  provide  ease  of  maintenance and security from mail theft. Willdan provided the following services.   Completed the optimization analysis using geographic information system (GIS) technology  that was initiated by another firm and an in‐house GIS analyst;   Established a 1913 Act assessment district to assist with construction funding and mailbox  maintenance and replacement;   Prepared a design book for each mailbox location, including parcel list, concept plan, address  and key assignments, and engineer’s estimate;   Prepared engineering and architectural design plans for each mailbox station;   Prepared engineering and architectural design plans for one or more demonstration mailbox  station at locations selected by the District; and   Provided coordination with the U.S. Postal Service.  Although the district formation received a negative vote from the residents, it was widely  acknowledged that the design was superior to the existing mailbox configuration.  Education  Bachelor of Science,  Engineering and Civil  Engineering, Tamil Nadu  College of Engineering Civil  Engineering, Murugappa  Polytechnic  Registration  Civil Engineer, California  No. 81888  12 Years’ Experience  City Council Regular Meeting - Page 176 of 268 Valuation Study of the  Water and Sewer Systems    35 T. Peter  Resume Continued  City of Lakewood, CA – Golden State Water (GSM) Distribution Network  Acquisition  and  Integration Feasibility Analysis: Project manager responsible for overall project management and  oversight of services required to perform a feasibility and financial impact analysis to acquire and  integrate the existing GSW distribution network within the City. Willdan evaluated the existing  network to determine whether the network within city limits could be disconnected from the  existing network. To determine the feasibility, the existing GSW network was evaluated for its  ability to function as a stand‐alone after removal of the distribution lines within city limits. Willdan  evaluated and compared the detached GSW network with the existing distribution network to  identify the best solutions for the City to provide service to the detached GSW network. This  included  evaluating  the  existing  well  capacity  and/or  a  service  connection  from  the  City's  distribution network to facilitate the additional network demand. Willdan conducted a preliminary  evaluation of the infrastructure acquisition cost. Based upon the findings, analyzed the financial  aspects  and  impacts  of  the  water  system  acquisition.  A  technical  memorandum  detailing  the  findings was provided.  City of Palm Desert, CA – Utility Undergrounding Assessment District No. 04‐01 Formation: Design  engineer responsible for assisting with civil infrastructure design required for forming the utility  undergrounding assessment district. The district was formed to finance removing all overhead  utilities in a residential neighborhood and installing underground vaults and trenches. Project tasks  included completing the Engineer’s Report, onsite fieldwork to review the location of the utilities  relative to the properties to be assessed and developing the assessment methodology. Willdan also  assisted with the ballot proceedings. Bidding assistance and construction observation were also  provided.   City of Ridgecrest, CA – Drummond Avenue Widening: Civil engineering task leader responsible for  providing  and  overseeing  all  civil  improvements  for  design  of  new  curb,  gutter,  sidewalks,  crosswalks, ADA curb ramps, asphalt concrete paving, signing and striping between Downs Street  and Inyo Street. The improvements were funded by the Highway Safety Improvement federal  program and required a consultant with expertise in managing federally‐funded projects. The  Drummond Avenue widening involved improvements for two lanes of travel in each direction to  align with an existing cross section at Downs Street and Inyo Street.  County of Glenn, CA – Walker Creek Bridge Replacement: Civil engineering task leader responsible  for providing and overseeing all civil improvement design to reconstruct approximately 900 feet of  roadway washed out during that year's record storms. As part of the Toll Credit Program, developed  a replacement concept for the existing low‐water crossing – a multi‐span, slab bridge on pile  extensions. This design creates a year‐round accessible crossing that passes standard design for a  100‐year storm event without overtopping the bridge or roadway. Willdan successfully lobbied Cal‐ trans Local Assistance to include an additional 1,000 feet of roadway approach work. Services  include overall project management, utility coordination, and supplemental surveys as well as  developing  floodplain  and  hydraulic  reports,  CEQA/NEPA  environmental  documentation,  and  preparation of final roadway and bridge plans, specifications, and estimate documents.  City Council Regular Meeting - Page 177 of 268 Valuation Study of the  Water and Sewer Systems    36 Larry Brown, RCI  Technical Support  Mr. Brown is responsible for construction administration and observation of a wide range of public  works improvement projects. Mr. Brown’s field experience includes drainage facilities, railroad  grade crossings, highway and landscape improvements, traffic signals and signing projects, and  underground utility construction, as well as commercial and residential development projects. Mr.  Brown  has  served  as  Public  Works  Observer  for  the  Cities  of  Hesperia,  Moreno  Valley,  and  Temecula, and was responsible for the review of plans and specifications prior to construction to  ensure compliance with city standards. He also conducted field observations of the improvements.  Mr.  Brown’s  construction  administration  experience  includes:  coordinating  activities  with  contractors, utility companies, and other agencies; processing change orders, progress payments,  and other construction documents; investigating citizen complaints, and resolving field problems;  and reviewing plans, specifications, and estimates packages for compliance with city standards.  Relevant Project Experience  Capital  Replacement  Plan  –  Phase  1  Inventory,  Bear  Valley  Community  Services  District,  Tehachapi, CA (Field Inventory Technician): Willdan is currently preparing a Capital Replacement  Plan  for  the  District’s  water  and  wastewater  infrastructure.  Since  there  were  limited  records  available for the existing infrastructure, Phase 1 of the project involved data collection and review  of available documents, including GIS data and as‐builts, followed by a field inventory of all well  sites, reservoirs, pump stations, lift stations, treatment plant, etc. to document and photograph the  existing infrastructure at each facility. Mr. Brown was responsible for all site visits to all facilities  and completing field inventory forms to document nameplate data, pipe sizes and materials,  electrical equipment, structures, etc., as needed to define the District’s existing assets. Phase 2 will  include condition assessment and Capital Replacement Plan preparation, and Phase 3 will include  a utility rate study.  River  Road  Bridge  Pipelines,  Western  Municipal  Water  District, Riverside,  CA  (Public  Works  Observer): Willdan provided design and construction engineering services for three parallel 20‐inch  welded steel water pipeline, and a 30‐inch force main through the new River Road Bridge in Norco.  Willdan also provided construction support, observation, and management assistance to WMWD,  including, but not limited to answering questions and providing clarification during the construction  phase with periodic field observation during construction to assess whether the improvements  were constructed in compliance with the design; reviewing change  order  requests  and  recommending approval/denial of such requests to WMWD; and preparing record drawings of  constructed facilities at design scale to produce clear, accurate and easy‐to‐read drawings.  Trunk Water Line Replacement Project – Potrero, Morongo, and Martin Roads, Morongo Band of  Mission Indians, Banning, CA (Public Works Observer): Willdan provided design, construction  management,  inspection,  and  materials  testing  services  for  water  system  improvements  that  included 8,600 lineal feet of 16‐inch  DIP water pipeline  to replace  the failing PVC pipe, new  hydrants, valves, blow‐offs, air vacuum valves, and 14 tie‐ins to existing connection points plus  meter laterals. The design included crossing of two existing 72‐inch CMP culverts.  Camp Conrad Chinnock Water and Sewer Improvements, Diabetes Association, Angelus Oaks, CA  (Public Works Observer): Willdan prepared the plans, specifications, and engineer's estimates for  the construction of water and sewer improvements at Camp Conrad Chinnock in Angelus Oaks, CA.  The campground is in a heavily wooded area on U.S. Forest Service leased land off Highway 38.  Agency approvals were required by San Bernardino County Building & Safety and Environmental  Education  Post Certification and  Continuing Education  Program, San Bernardino  Valley College  Key Skills  Construction Inspector,  California No. 5181  AQMD PM‐10  Concrete Paving, Slurry  Seal and Traffic Signals  Public Works Certification  California State University,  Los Angeles  Macco Trench Shoring  Toxler Nuclear Soils  Testing Equipment  32 Years’ Experience  City Council Regular Meeting - Page 178 of 268 Valuation Study of the  Water and Sewer Systems    37 L. Brown  Resume Continued  Health Departments, U.S. Forest Service, and Santa Ana Regional Water Quality Control Board.  On Call Inspection Services, Park Water Company, Downey, CA (Public Works Observer): Mr.  Brown  was  responsible  for  daily  observation  of  construction  activities.  Willdan  has  provided  inspection services for various Park Water projects throughout the Los Angeles County through an  on‐call contract since 1993. The projects typically involve installation of water main‐lines, services,  hydrants, services, and other appurtenant work. Willdan has also provided inspection and testing  for several earthquake retrofit projects, as well as, inspection for several wells over the past 20  years.    Tim Spencer Alley Reconstruction, CIP No. 8281, City of Davis, CA (Public Works Observer): The  project consists of improvements within Tim Spencer Alley, including water main demolition, water  main  and  sanitary  sewer  main  installation,  pavement  resurfacing,  CIPP  sewer  main  lining,  temporary  water/sewer  bypass,  water/sewer  service  installations,  asphalt  and  concrete  demolition, grading, PCC improvements, ADA compliant ramps, street furniture, landscaping, street  lighting, and other appurtenant work.  City Council Regular Meeting - Page 179 of 268 Valuation Study of the  Water and Sewer Systems    38 7. References    Provided below are client references that demonstrate Willdan’s ability to prepare the valuation study proposed in  the City’s RFP. We are proud of our reputation for customer service and encourage you to contact our past clients  regarding our commitment to excellence.  City of Queen Creek, AZ – Valuation Services and Financial Feasibility Analyses  Address:  22358 S. Ellsworth Road, Queen Creek, AZ  85142  Contact:   Scott McCarty, CPA, Finance Director  Telephone:   (480) 358‐3172   Email:     scott.mccarty@queencreek.org   Key Staff:   Tara Hollis, CPA, MBA – Project Manager      Jeff McGarvey – Principal‐in‐Charge, QA/QC    City of Vero Beach, FL – Water and Wastewater Utility System Appraisal  Address:  PO Box 1389, Vero Beach, FL  32961  Contact:   Mr. Robert J. Bolton, PE, Water and Sewer Administration   Telephone:   (772) 978‐5220   Email:     RBolton@covb.org   Key Staff:   Tara Hollis, CPA, MBA – Project Manager      Gerald Hartman, PE, BCEE, ASA – Accredited Senior Appraiser    Heritage Hills Water Works Corporation and Heritage Hills Sewer Works  Corporation, NY – Utility System Appraisal and Sales Negotiation Support  Address:  PO Box 1389, Vero Beach, FL  32961  Contact:   PO Box 873, 465 Heritage Road, Southbury, CT  06488  Telephone:   (203) 264‐8291   Email:     ksorensen@hdginc.net   Key Staff:   Tara Hollis, CPA, MBA – Project Manager      Gerald Hartman, PE, BCEE, ASA – Accredited Senior Appraiser and Sales Negotiation     City Council Regular Meeting - Page 180 of 268 Valuation Study of the  Water and Sewer Systems    39 8. Agreement to City Contract Terms and Ability to  Obtain Insurance  Agreement to City Contract Terms  Willdan’s legal counsel has reviewed the City’s Professional Services Agreement, provided as Appendix A of the RFP.  We kindly request the City’s consideration of the contract exceptions outlined below.   3.  Indemnification.    B. City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers  (individually  and  collectively,  "Indemnitees")  shall  have  no  liability to Consultant or any other person for, and  Consultant shall indemnify, defend, protect and hold harmless Indemnitees from and against, any and all liabilities,  claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever  nature, including reasonable attorneys' fees and disbursements (collectively "Claims"), which Indemnitees may suffer  or incur or to which Indemnitees may become subject by reason of or arising out of any injury to or death of any  person(s), damage to property, loss of use of property, economic loss or other loss occurring as a result of or allegedly  caused by Consultant performance of or failure to perform any services under this Agreement or by the negligent or  willful acts or omissions of Consultant, its agents, officers, directors, subcontractor, sub consultant or employees,  committed in performing any of the services under this Agreement. Notwithstanding the foregoing, the provisions of  this subsection shall not apply to Claims occurring as a result of the City’s sole negligence, active negligence, or willful  acts or omissions.    4.  Insurance.  D.  All insurance policies shall provide that the insurance coverage shall not be non‐renewed, canceled,  reduced, or otherwise modified (except through the addition of additional insureds to the General Liability and  Automobile Liability policies policy) by the insurance carrier without the insurance carrier giving City thirty (30) days'  prior written notice thereof.  Any such thirty (30) day notice shall be submitted to CITY via certified mail, return receipt  requested, addressed to “Director of Human Resources & Risk Management,” City of Lynwood, 11330 Bullis Road,  Lynwood, California, 90262.  Consultant agrees that it will not cancel, reduce or otherwise modify said insurance  coverage.    13.  Performance  Evaluation.    For  any  Agreement  in  effect  for  twelve  months  or  longer,  a  written  annual  administrative performance evaluation shall be required within ninety (90) days of the first anniversary of the effective  date of this Agreement, and each year thereafter throughout the term of this Agreement.  The work product required  by this Agreement shall be utilized as the basis for review, and any comments or complaints received by City during  the review period, either orally or in writing, shall be considered.  City shall meet with Consultant prior to preparing  the written report.  If any noncompliance with the Agreement is found, City may direct Consultant to correct the  inadequacies, or, in the alternative,. If the noncompliance is not corrected by the Consultant within a reasonable  time, the City may terminate this Agreement as provided herein.  Ability to Obtain Insurance  Willdan carries Professional Liability, General Liability, Automobile, and Worker’s Compensation insurance. Each policy  has a limit of $1 million per occurrence. The General and Professional Liability policies have an annual aggregate of $2  million. Our insurance carriers have an A‐15 or better rating.  Our insurance policy is renewed on an annual basis. City Council Regular Meeting - Page 181 of 268 Valuation Study of the  Water and Sewer Systems    40 9. Legal Issues  While unfortunate, it is not uncommon for national consulting firms providing complex and politically sensitive  services to face an occasional legal challenge. However, there are no current or pending litigation claims. In addition,  the  matters  listed  below  occurred  many  years  ago.  Further,  since  2012  Willdan  has  added  several  nationally  recognized utility rate and financial experts, some of which will lead the City’s project efforts. Willdan’s proposed  project team has, collectively, been involved in hundreds of utility financial studies none of which has resulted in  litigation.  City of Glendale v. Willdan Financial Services.  Superior Court of California for the County of Los Angeles. The parties  included the City of Glendale, Willdan Financial Services, and Willdan Group, Inc. The litigation resulted from a 2010  rate study completed for Glendale. The City’s claims centered on the contention that the water rates proposed by  Willdan as part of the study did not sufficiently recover the revenue requirements of the water system. However,  investigation into the study analysis indicated that flawed customer billing data, provided by Glendale, impacted the  study findings. Willdan offered, in good faith, to remedy the situation by revising the original analysis, at no cost to  Glendale, with corrected billing data. However, Glendale declined the proposed solution and chose legal action  instead. After a lengthy process that concluded there was no financial harm to the City, the matter was resolved by a  settlement between Glendale and the insurance company. The result was that there was no liability to Willdan  whatsoever.    City of Union City v. Willdan Financial Services. California Superior Court, Alameda County. The parties include the City  of Union City and Willdan Financial Services. The City alleged that Willdan provided incorrect data to the county  assessor’s office resulting in a reduction in refuse fees collected by the City. This matter was dismissed and settled for  an amount that our legal staff has opined was not “significant.” Also, this issue involved our District Administration  Services group and was unrelated to utility financial services.    10. Disclosures    Willdan and/or principal of the firm has not, or is currently, subject of any investigation by the County, State and/or  Federal agencies with the past five years.    11. Additional Statements   Willdan will adhere to all federal laws, state, and local laws and regulations   Willdan shall allow authorized federal, state, county, and the City’s officials access to place of work, books,  documents, papers, fiscal, payroll materials, and other relevant contract records pertinent to this project. All  relevant records will be retained for at least three years.   Willdan will not discriminate against any employee of applicant for employment because of race, color, religion,  sex or national origin.     Willdan shall comply with the California Labor Code. Pursuant to said regulations entitled: Federal Labor Standards  provisions; Federal Prevailing Wage Decision; and State of California Prevailing Wage Rates, respectively.  City Council Regular Meeting - Page 182 of 268 Valuation Study of the  Water and Sewer Systems    41 12. Cost Proposal  On the basis of the scope described herein, Willdan’s total labor and expense billings proposed for the City’s water  and sewer system valuation is $81,904. Based on actual incurred effort, each task’s budgeted amount may increase.  Willdan will not, however, exceed the estimated total labor and expense billing amount without first obtaining the  City’s prior written authorization.   For purposes of this proposal, we have assumed approximately $20,000 in project costs associated with land appraisal  services. If selected, we will work with the City to identify a qualified local land appraiser, experienced in Los Angeles  County, and negotiate a specific scope of work and fees for these services. Should the negotiated fees differ from the  $20,000 assumed herein our project fees would need to be adjusted.    City Council Regular Meeting - Page 183 of 268 Valuation Study of the  Water and Sewer Systems    42 The estimated professional fees are based on the utility system data being provided in a form/format that facilitates  the activities described in the scope. Should development of the data supplied by the City require effort over and  above the intended scope, Willdan will immediately notify the City. Further, the City acknowledges that Willdan is  relying upon the accuracy of the information provided by the City or their designees and that Willdan shall not be  liable for any inaccuracies contained therein.    Hourly Rates  Hourly rates for Willdan’s Financial and Engineering divisions are listed below.  Willdan Financial Services  Hourly Rate Schedule  Position Hourly Rate Group Manager  $250 Senior Accredited Appraiser $250  Managing Principal  $240 Principal Consultant $210  Senior Project Manager  $185 Project Manager $165 Senior Project Analyst  $135 Senior Analyst $125 Analyst II $110 Analyst I $100  City Council Regular Meeting - Page 184 of 268 Valuation Study of the  Water and Sewer Systems    43   ***$169/hour for Prevailing Wage Project  Mileage/Field Vehicle usage will be charged at the rate in accordance with the current FTR mileage reimbursement  rate, subject to negotiation.  ENGINEERING Technical Aide I $64 Technical Aide II $83 Technical Aide III $103 Drafter I $104 Drafter II $121 Senior Drafter $134 GIS Analyst I $139 GIS Analyst II $158 GIS Analyst III $173 Designer I $139 Designer II $145 Traffic Engineer I $185 Traffic Engineer II $199 Senior Designer I $153 Senior Designer II $160 Assistant Engineer I $116 Assistant Engineer II $132 Assistant Engineer III $138 Assistant Engineer IV $143 Associate Engineer I $149 Associate Engineer II $155 Associate Engineer III $161 Design Manager $163 Senior Design Manager $169 Senior Engineer I $164 Senior Engineer II $167 Senior Engineer III $171 Senior Engineer IV $181 Supervising Engineer $187 Project Manager I $150 Project Manager II $171 Project Manager III $183 Project Manager IV $199 Program Manager I $167 Program Manager II $185 Program Manager III $204 City Engineer I $199 City Engineer II $209 Principal Project Manager $199 Deputy Director $207 Director $212 Principal Engineer $230 CONSTRUCTION MANAGEMENT Labor Compliance Specialist $115 Labor Compliance Manager $145 Utility Coordinator $153 Assistant Construction Manager $145 Construction Manager $169 Senior Construction Manager $175 Project Manager IV $199 Deputy Director $207 Director $212 INSPECTION SERVICES Public Works Observer I*** $89 Public Works Observer II*** $99 Senior Public Works Observer I*** $107 Senior Public Works Observer II*** $119 Senior Public Works Observer III*** $129 Senior Public Works Observer IV*** $136 Senior Public Works Observer V*** $145 MAPPING AND EXPERT SERVICES Survey Analyst I $121 Survey Analyst II $139 Calculator I $121 Calculator II $134 Calculator III $146 Senior Survey Analyst $158 Supervisor – Survey & Mapping $175 Principal Project Manager $199 BUILDING AND SAFETY Assistant Code Enforcement Officer $85 Code Enforcement Officer $98 Senior Code Enforcement Officer $115 Supervisor Code Enforcement $139 Plans Examiner Aide $91 Plans Examiner $139 Senior Plans Examiner $153 Assistant Construction Permit Specialist $98 Construction Permit Specialist $103 Senior Construction Permit Specialist*** $121 Supervising Construction Permit Specialist $128 Assistant Building Inspector $115 Building Inspector*** $128 Senior Building Inspector $139   BUILDING AND SAFETY (continued) Supervising Building Inspector $153 Inspector of Record $167 Deputy Building Official $167 Building Official $173 Plan Check Engineer $167 Supervising Plan Check Engineer $173 Principal Project Manager $199 Deputy Director $207 Director $212 PLANNING Community Development Technician $103 Assistant Community Development Planner $128 Associate Community Development Planner $139 Senior Community Development Planner $158 Principal Community Development Planner $173 Planning Technician $103 Assistant Planner $128 Associate Planner $139 Senior Planner $158 Principal Planner $173 Planning Manager $189 Deputy Director $207 Director $212 LANDSCAPE ARCHITECTURE Assistant Landscape Architect $121 Associate Landscape Architect $139 Senior Landscape Architect $153 Principal Landscape Architect $173 Principal Project Manager $199 ADMINISTRATIVE Administrative Assistant I $76 Administrative Assistant II $91 Administrative Assistant III $107 Project Accountant I $86 Project Accountant II $101 Project Controller I $107 Project Controller II $121   City Council Regular Meeting - Page 185 of 268 Valuation Study of the  Water and Sewer Systems    44 Additional billing classifications may be added to the above listing during the year as new positions are created.  Consultation in connection with litigation and court appearances will be quoted separately. The above schedule is for  straight  time.  Overtime  will  be  charged  at  1.5  times,  and  Sundays and  holidays, 2.0  times  the standard rates.  Blueprinting, reproduction, messenger services, and printing will be invoiced at cost plus fifteen percent (15%). A sub  consultant management fee of fifteen percent (15%) will be added to the direct cost of all sub consultant services to  provide for the cost of administration, consultation, and coordination. Valid July 1, 2018 thru June 30, 2019, thereafter,  the rates may be raised once per year to the value between the 12‐month % change of the Consumer Price Index for  the Los Angeles/Orange County/Sacramento/ San Francisco/San Jose area and five percent.  City Council Regular Meeting - Page 186 of 268 2401 E. Katella Avenue, Suite 300 Anaheim, California 92806 714.940.6300 | Fax: 714.940.4920 www.willdan.com City Council Regular Meeting - Page 187 of 268 Agenda Item # 15. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: Michelle G. Ramirez, Director of Community Development SUBJECT: PROPOSED ORDINANCE IN RESPONSE TO SENATE BILL 946, THE SAFE SIDEWALK VENDING ACT Recommendation: Staff recommends that the City Council: 1. ADOPT the attached Urgency Ordinance entitled “AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 13-7 (VENDING, PEDDLING, SELLING AND/OR SOLICITING ON PUBLIC STREETS, SIDEWALKS, PARKS, PARKWAYS, MEDIANS, LANDS, PROPERTIES OR OTHER LANDS OR PROPERTIES UNDER THE CONTROL OF THE CITY) OF THE LYNWOOD MUNICIPAL CODE TO CREATE A SIDEWALK VENDING PROGRAM” by a four- fifths (4/5) vote. 2. INTRODUCE the attached Ordinance for First Reading, by title only, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 13-7 (VENDING, PEDDLING, SELLING AND/OR SOLICITING ON PUBLIC STREETS, SIDEWALKS, PARKS, PARKWAYS, MEDIANS, LANDS, PROPERTIES OR OTHER LANDS OR PROPERTIES UNDER THE CONTROL OF THE CITY) OF THE LYNWOOD MUNICIPAL CODE TO CREATE A SIDEWALK VENDING PROGRAM.” 3. DETERMINE that approval of both Ordinances are Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) as the adoption of these Ordinances has no potential for causing a significant effect on the environment. Background: On September 17, 2018, Governor Brown signed Senate Bill 946 (SB 946), also known as the “Safe Sidewalk Vending Act”. SB 946 requires cities to allow sidewalk vending commencing January 1, 2019. Under the new law, the state mandates local jurisdictions to support and facilitate sidewalk vendors. The stated intent of the legislation is to: Create entrepreneurial and economic development opportunities for immigrant and low-income communities; City Council Regular Meeting - Page 188 of 268 Increase access to desired goods, such as culturally significant food and merchandise; Contribute to a safe and dynamic public space; Promote the safety and welfare of the public by encouraging local authorities to support and properly regulate sidewalk vending; and Decriminalizes sidewalk vending. Pursuant to SB 946, “sidewalk vendors” are defined as any person who sells food or merchandise while on a public sidewalk or other public pedestrian path (including public parks). The law broadly defines “sidewalk vendors” to include those using a pushcart, wagon, or other nonmotorized conveyance, or from his or her person, while on a public sidewalk or other pedestrian path. A sidewalk vendor may be “stationary” (operating from a fixed location) or “roaming” (moving from place to place and stop only to complete a transaction). SB 946 adds a new chapter to the Government Code that not only significantly limits the authority of cities and counties to regulate sidewalk vendors, but also prohibits the imposition of criminal penalties for violators. Instead, violations may only be punished with administrative citations in amounts specified in the law. Additionally, it should be noted that while administrative citations can be issued for violations of local sidewalk vending regulations, there are strict limits as to how any city can enforce the collection of imposed fines. Given the passage of SB 946, the City and other local jurisdictions that currently prohibit such activities as pushcart vending and individuals who set up stands and or other equipment on the city sidewalks to sell their wares, will no longer be able do so. However, the bill does allow cities to adopt some requirements regulating the time, place, and manner of sidewalk vending, if the requirements are directly related to health, safety or welfare concerns. The bill also is clear that perceived community animus and economic competition are not valid health, safety, or welfare concerns to justify the imposition of time, place, or manner restrictions. To meet this newly enacted state mandate, the City must amend Title 13-7 (Vending, Peddling, Selling and/or Soliciting on Public Streets, Sidewalks, Parks, Parkways, Medians, Lands, Properties or Other Lands or Properties Under the Control of the City) of the Lynwood Municipal Code as the current code does not allow sidewalk vending. An identical non-urgency ordinance following the usual procedures is submitted concurrently with the urgency ordinance for introduction and first reading, which only requires a simple majority vote. The second reading of the non-urgency ordinance would occur at the next regular meeting on March 19, 2019 and the non-urgency ordinance would become effective 30 days after its adoption. This action is generally recommended as merely a precaution to eliminate any potential challenges to the urgency findings. Discussion and Analysis: Since sidewalk vending is prohibited in Lynwood, the City does not have regulations in place to accommodate the state mandate to allow sidewalk vending. The regulations in the attached ordinance are proposed to accommodate sidewalk vendors and their equipment pursuant to the requirements of SB 946. Staff has worked closely with the City Attorney’s Office to comply with the state law, while also providing protections against potential health and safety concerns that might be created by sidewalk vending operations in the City. The table below describes the more significant regulations from the law that will affect how the City can regulate vending on sidewalks. Subject Description Areas of Operation Cities cannot restrict roaming or stationary sidewalk vending in commercial zones unless restrictions are directly related to objective health, safety, or welfare concerns. In residential areas, only stationary vendors can be prohibited.. City-Owned Parks Cities cannot prohibit roaming vendors from operating in City-owned parks, but may prohibit stationary vendors, if the City has a City Council Regular Meeting - Page 189 of 268 contract with a concessionaire. Hours of Operation In commercial zones, hours cannot be more restrictive than other businesses on same street. Imposition of hours restrictions is permissible in residential zones. Limits on Number of Vendors Cities cannot limit the number of vendors or restrict them to certain areas of the City. Businesses Cities cannot require a sidewalk vendor to obtain permission from any business to operate near them. Cities do not have the authority to prohibit a vendor from operating on the sidewalk due to conflicting business uses. Americans with Disabilities Act of 1990 (Public Law 101-336) Cities can adopt requirements necessary to ensure compliance with the federal, state and local disability access standards. Proposed Regulations SB 946 authorizes local governments to implement operational regulations regarding the time, place, and manner of sidewalk vending only as they relate to objective health, safety or welfare concerns. Regulations considered for the proposed ordinance include, but are not limited to: Prohibit stationary sidewalk vendors from vending in areas zoned exclusively residential Size restriction for vending area Sanitation requirements Restrictions on hours of operation Restriction on noise-making devices Enforcement of the federal Americans with Disability Act of 1990 standards Prohibition of vending in vicinity of special events and filming Proximity to critical City infrastructure Proximity to sensitive receptors such as schools and religious institutions Although the issuance of a permit must be a ministerial action, the proposed ordinance would require that a sidewalk vendor obtain and/or provide: A valid Los Angeles County Department of Health Permit (for food vendors) A California seller’s permit Current liability insurance A City business license Limitations on Penalties for Violation of Regulations Under the new state regulations, it is permissible for the City to adopt regulations to ensure the health and safety of the community to address potential impacts of sidewalk vending. However, enforcement of violations of sidewalk vending regulations (pursuant to SB 946) is limited to the issuance of administrative citations. The proposed ordinance addresses the mandated restrictions on penalties. Additionally, SB 946 dictates the maximum amounts and specifies that no additional fines or penalties may be assessed, including for failure to pay an administrative citation. Further, once a citation is issued, the City is required to consider the person’s ability to pay including if the person is a recipient of certain government benefits, and if their income is below poverty level, then the City must accept payment in the amount of 20% of the fine amount as full satisfaction. Staff believes that the proposed regulations are limited to “time, place, and manner” and will provide adequate protection of the health and safety of the community. However, the limitations contained in SB 946 will make the enforcement of the City’s regulations extremely challenging. California Environmental Quality Act The adoption of the proposed urgency ordinance and regular ordinance is covered by the “general rule” that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. Staff’s determination is that it can be seen with certainty that there is no possibility that the proposed regulations contained in the ordinance will have a significant effect on the environment. Therefore, the adoption of this ordinance is exempt from CEQA pursuant to Section 15061(b)(3) as it has no potential for causing a significant effect on the environment. City Council Regular Meeting - Page 190 of 268 Public Notice Process This item has been noticed through the regular agenda notification process. Fiscal Impact: The adoption of the proposed ordinance will not have any direct fiscal impacts. The existing fee schedule will cover the cost to process and issue City permits; however, it is unknown if there will be added costs for enforcement. Coordinated With: City Manager City Attorney ATTACHMENTS: Description Attachment A - Urgency Ordinance Attachment B - Ordinance City Council Regular Meeting - Page 191 of 268 URGENCY ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 13-7 (VENDING, PEDDLING, SELLING AND/OR SOLICITING ON PUBLIC STREETS, SIDEWALKS, PARKS, PARKWAYS, MEDIANS, LANDS, PROPERTIES OR OTHER LANDS OR PROPERTIES UNDER THE CONTROL OF THE CITY) OF THE LYNWOOD MUNICIPAL CODE TO CREATE A SIDEWALK VENDING PROGRAM RECITALS I. Senate Bill (“SB”) 946 was signed into law on September 17, 2018, and became effective January 1, 2019. II. SB 946 limits the authority of cities and counties to regulate sidewalk vendors, except in accordance with California Government Code Sections 51038 and 51039. III. The City’s Municipal Code currently regulates sidewalk vendors in a manner that is inconsistent with SB 946. IV. The City Council finds that the establishment of a sidewalk vending program will benefit the City as a whole by facilitating entrepreneurship and providing economic opportunity for people to support themselves and their families, and by contributing to a diversity of food options and lively streets. V. The City Council finds that the act of vending on sidewalks and other areas of the public right-of-way also creates the potential for increased safety hazards, such as, but not limited to, inhibiting the ability of disabled individuals and other pedestrians to follow a safe path of travel; interfering with the performance of police, firefighter, and emergency medical personnel services; encouraging pedestrians to cross mid-block or stand in roadways to purchase food; and creating obstacles and contributing to congestion for pedestrian, vehicle, and bicycle traffic. VI. The City Council finds that restrictions on sidewalk vending are needed to accommodate vendors and their equipment, while also safeguarding the flow of pedestrian movement on sidewalks and in the public right-of-way, and ensuring no interference with the performance of police, firefighter, and emergency medical personnel. VII. The City Council finds that the regulation of vendors engaged in the sale of food and food products will help to ensure that sidewalk vendors obtain all necessary permits and comply with applicable sanitation, food preparation, and food handling laws, and thereby will protect the public health and safety against health problems City Council Regular Meeting - Page 192 of 268 such as food contamination, poor hygienic practices, and the threat of food poisoning. VIII. The City Council finds that regulations related to the collection and disposal of trash or other debris generated by sidewalk vending are necessary to ensure that such trash or debris is not left, thrown, discarded, or deposited on City streets, sidewalks, pathways, gutters, or storm drains, or upon public or private lots, so that the same might be or become a pollutant. IX. The City Council finds that restrictions on sidewalk vending in residential areas are necessary to ensure that such areas are protected from excessive noise and traffic impacts while allowing economic opportunities for sidewalk vendors. X. The City Council adopts this Urgency Ordinance under the authority provided in SB 946, and finds that the time, place, and manner regulations and requirements provided herein are directly related to the City’s purpose of protecting the health, safety, and welfare of its residents, businesses and visitors. XI. All legal prerequisites to the adoption of this Urgency Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Urgency Findings. The City Council of the City of Lynwood hereby finds and determines as follows: A. The facts set forth in the above Recitals of this Urgency Ordinance are true and correct, and incorporated into this Urgency Ordinance as substantive findings. B. This Urgency Ordinance is adopted as an urgency measure pursuant to Government Code Section 36937 for the immediate preservation of the public health, safety, and welfare, and is adopted and justified based on the following: 1. SB 946 was signed by Governor Jerry Brown on September 17, 2018, became effective January 1, 2019, and establishes statewide regulations for sidewalk vendors operating in or upon the public rights-of-way and parks. 2. As of SB 946’s effective date, any local ordinance or regulation that fails to “substantially comply” with SB 946 is invalid and unenforceable; because the City’s existing regulation of sidewalk vendors through the Lynwood Municipal Code are inconsistent with SB 946, they will be invalid and unenforceable as of January 1, 2019. 3. Since January 1, 2019, the City will see an immediate influx of sidewalk vendors, the scope and extent of which is limitless at this time. If unregulated, sidewalk vending poses a likelihood of creating negative impacts on the health, safety and City Council Regular Meeting - Page 193 of 268 welfare of the community, including but not limited to: illegal sales; exposure to food-borne disease from unlicensed vendors; unsanitary conditions; public hazards from trash and debris; overcrowded sidewalks impeding the free flow of pedestrian movement; inconsistency with the federal American with Disabilities Act of 1990; and line-of-sight obstruction from vehicles and pedestrians traversing the ROW. 4. A local program regulating sidewalk vendors is necessary to address the above concerns, and to further: ensure no interference with the performance of police, firefighter, and emergency personnel services; the flow of pedestrian or vehicular traffic, including ingress into, or egress from, any residence, public building, or place of business, or from the street to the sidewalk, by persons existing or entering parked or standing vehicles; provide reasonable access for the use and maintenance of sidewalks, pathways, poles, posts, traffic signs or signals, hydrants, restrooms, trash receptacles, firefighting apparatus, mailboxes, as well as access to locations used for public transportation services; maximize public access to and along the right of way; reduce exposure to the City for personal injury or property damage claims and litigation; protect the residents from persons with certain criminal history. 5. Based on the foregoing, there is a current and immediate threat to the public health, safety, and welfare, and an urgency ordinance is warranted and necessary to protect the public against potential negative health, safety, and welfare impacts. Section 2. Title 13-7 (Vending, Peddling, Selling and/or Soliciting on Public Streets, Sidewalks, Parks, Parkways, Medians, Lands, Properties or Other Lands or Properties Under the Control of the City) of the Lynwood Municipal Code is hereby repealed and replaced, which shall read as follows: “TITLE 13-7 VENDING, PEDDLING, SELLING AND/OR SOLICITING ON PUBLIC STREETS, SIDEWALKS, PARKS, PARKWAYS, MEDIANS, LANDS, PROPERTIES OR OTHER LANDS OR PROPERTIES UNDER THE CONTROL OF THE CITY 13-7.1 Definitions. The following words and phrases, whenever used in this title, shall mean as follows: CIVIC CENTER. The grounds, buildings, structures, and open space areas bounded by Bullis Road to the west, Ernestine Avenue to the east, Platt Avenue to the south (not including the R-2 zone), and the Lynwood Library/City Hall North boundaries to the north. DIRECTOR. The Community Development Director of the City of Lynwood. FOOD. Any type of raw, cooked, or processed edible substance, including any food product or beverage. City Council Regular Meeting - Page 194 of 268 JUNK FOOD. Any food or beverage that is low in essential nutrients, protein, vitamins or minerals and high in calories, sodium, sugar and fat. Junk Food includes, without limitation, soda, candy, chips, ice cream, hot dogs or processed meat, and chocolates. LOS ANGELES FIRE STATION. Any facility in the City of Lynwood where fire engines and other equipment of the Los Angeles Fire Department are housed. LOS ANGELES SHERIFF STATION. Any facility in the City of Lynwood where sheriff vehicles and other equipment of the Los Angeles Sheriff’s Department are housed. MERCHANDISE. Any tangible goods or items that are not food. PARK. An open space intended for public recreational use that is operated by the City of Lynwood. PERSON. One or more individuals, groups, businesses, business trusts, companies, corporations, joint ventures, joint stock companies, partnership, entities, associations, clubs, or organizations composed of two or more individuals (or the manager, lessee, agent, servant, officer, or employee of any of them), whether engaged in business, nonprofit, or any other activity. ROAMING SIDEWALK VENDOR. A roaming sidewalk vendor has the same meaning as set forth in Government Code Section 51036(b), and includes a sidewalk vendor who moves from place to place and stops only to complete a transaction. SIDEWALK. A public sidewalk or paved pedestrian path or walkway specifically designed for pedestrian travel. SIDEWALK VENDOR. A person who sells from a vending cart or from one’s person, upon a public sidewalk, parkway, pedestrian path, or other public right-of-way available to pedestrians. SIDEWALK VENDOR. A sidewalk vendor(s) or sidewalk vend(s) means a person who sells food or merchandise from a pushcart, stand, equipment, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one’s person, upon a public sidewalk or other pedestrian path. Sidewalk vendor includes “roaming sidewalk vendor” and “stationary sidewalk vendor.” “Sidewalk vendor permit” means a permit related to the use of a cart that is issued by the City in accordance with this chapter. STATIONARY CART. A stationary cart means a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance, that is intended to be operated from a fixed location by a stationary sidewalk vendor instead of being moved from place to place, where stops are limited to completing a transaction. City Council Regular Meeting - Page 195 of 268 STATIONARY SIDEWALK VENDOR. A stationary sidewalk vendor has the same meaning as set forth in Government Code Section 51036(c), and includes a sidewalk vendor who vends from a fixed location. SELL or SELLING. To sell, offer for sale, display for sale, or solicit offers to purchase, food, food products, beverages, goods, or merchandise. SWAP MEET. A location operated in accordance with Chapter 25 (Zoning) Article 200 of the Lynwood Municipal Code, and any regulations adopted pursuant to that chapter. TEMPORARY SPECIAL PERMIT. A permit issued by the City for the temporary use of, or encroachment on, the sidewalk or other public area, including but not limited to, an encroachment permit, special event permit, or temporary event permit, for purposes including, but not limited to, filming, parades, outdoor concerts, festivals, carnivals, and street fairs. VEND OR VENDING. To barter, exchange, sell, offer for sale, display for sale, or solicit offers to purchase, food or merchandise, or to require someone to negotiate, establish, or pay a fee before providing food or merchandise, even if characterized as a donation. VENDING CART. A pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance used for selling, whether mobile or stationary, that is not a vehicle as defined in the California Vehicle Code. 13-7.2 Permit Required. No person shall conduct or engage in sidewalk vending within the City without first obtaining a sidewalk vending permit pursuant to this title. 13-7.3 Sidewalk Vending Permit Application. A. To apply for a sidewalk vending permit, a person must file an application with the Director, or designee, accompanied by a nonrefundable application fee in an amount established by resolution of the City Council. The application shall be in a form prescribed by the Director and shall contain, at a minimum, the following: 1. The full legal name, current address, and telephone number of the applicant; 2. If the applicant is an agent of an individual, company, partnership, corporation, or other entity, the name and business address of the principal; 3. A copy of a California’s driver’s license or identification number, an individual taxpayer identification number, or a social security number. The document or number collected shall not be available to the public for inspection, is confidential, and shall not be disclosed except as required to administer the permit or comply with state law, or state/federal court order; 4. A description, map, or drawing of the area(s)/route the applicant intends to operate; 5. A complete description of the food or merchandise offered for sale or exchange. Any applicant who intends to sell food must also provide proof of either a Food City Council Regular Meeting - Page 196 of 268 Handler Card or Certified Food Protection Manager certificate, where applicable, pursuant to Health and Safety Code Section 113700-114437, and a Mobile Food Facility permit certifying that the vending cart used has been approved by the Los Angeles County Department of Public Health for that particular type of food; 6. The dimensions of the vending cart; 7. A complete description of any ancillary items that the applicant intends to use in conjunction with sales including, without limitation, trash receptacles, chairs, umbrellas and umbrella stands, or similar items; 8. The hours per day and the days per week during which the sidewalk vendor proposes to operate, and whether the applicant intends to operate as a stationary sidewalk vendor and/or a roaming sidewalk vendor; 9. A California seller’s permit number pursuant to Section 6067 of the Revenue and Taxation Code; 10. Certification by the applicant that the information contained in the application is true to his or her knowledge and belief; 11. Proof of a policy or policies of comprehensive general liability insurance with minimum limits of one million dollars ($1,000,000) per occurrence, combined single limit coverage and two million dollars ($2,000,000) in the aggregate against any injury, death, loss or damage as a result of wrongful or negligent acts or omissions by the applicant, with an endorsement naming the City as an additional insured. In addition, to the extent required, the applicant shall carry workers’ compensation sufficient to meet requirements of the State of California; 12. An agreement by the applicant to indemnify and hold harmless the City, its officers and employees, for any damage or injury caused to the City or to third parties as a result of the sidewalk vending conduct or activity as approved by Lynwood’s City Attorney; 13. Certification by the applicant, under penalty of perjury, that the information contained in the application is true to his or her knowledge and belief; and 14. Any other reasonable information regarding the time, place, and manner of the proposed vending. B. Complete applications must be submitted to the Director, or designee. Only complete applications will be considered. An application is complete if it includes all required information together with full payment of the nonrefundable application fee. Applications will be considered in the order they are received. The City may require supplemental information from any applicant before deeming an application complete. If supplemental information is requested, it must be provided to the Director, or designee, within seven business days of the request. C. The City may deny any application that is incomplete or that does not comply with all applicable requirements. The City may request and obtain supplemental information from any applicant before making a decision on the application. City Council Regular Meeting - Page 197 of 268 D. Applicants must agree to abide by the operational requirements stated in Title 13- 7.10. E. Sidewalk vendors cannot be permitted as a permanent or proprietary location in any property within the City. 13-7.4 Criteria for Approval, Denial, or Revocation of Permit. The Director, or his or her designee, shall approve the issuance of a permit unless he or she determines that: A. The applicant has been convicted of any felony or misdemeanor, and has not subsequently demonstrated rehabilitative characteristics; B. Information contained in the application, or supplemental information requested from the applicant, is false in any material detail; C. The applicant has failed to provide a complete application, after having been notified of the requirement to produce additional information or documents; D. The applicant has failed to demonstrate an ability to conform to the operating standards set forth in Title 13-7.9. E. The conduct of the sidewalk vendor will unduly interfere with traffic or pedestrian movement, or tend to interfere with or endanger the public peace or rights of nearby residents to the quiet and peaceable enjoyment of their property; F. If the application is for the renewal of a permit or a subsequent permit, the applicant has failed to pay all previous administrative fines, completed all community service or completed any other alternative disposition associated in any way with a previous violation of this article; or G. If the application is for the renewal of a permit or a subsequent permit, the applicant has had a permit issued under this article rescinded within the last twelve (12) months. If the permit is denied, written notice of such denial and the reasons therefor shall be provided to the applicant. 13-7.5 Permit Expiration and Renewal. A sidewalk vending permit shall be valid for twelve (12) months from the date of issuance, and shall expire and become null and void on the anniversary of its issuance. A person may apply for a permit renewal, on a form provided by the City, prior to the expiration of his or her active sidewalk vending permit and pay the related nonrefundable application renewal fee. City Council Regular Meeting - Page 198 of 268 13-7.6 Permit Rescission. The Director may rescind a permit issued to a sidewalk vendor on a fourth or subsequent violation of this title. A sidewalk vendor whose permit is rescinded may apply for a new sidewalk vending permit upon the expiration of the term of the rescinded permit. 13-7.7 Appeals. Any person aggrieved by the decision of the Director to issue, deny issuance, or rescind a sidewalk vending permit may appeal the decision to the City Council. The appeal shall be filed with the City Clerk within fourteen (14) days following the date of the Director’s decision. 13-7.8 Emergency Temporary Suspension of Permit. Where the conduct or the activity of the permittee creates an imminent peril to the public health or safety, a permit issued pursuant to this title may be summarily suspended upon notice to the permittee, provided that the permittee shall be entitled to a hearing within three (3) days thereafter and any emergency suspension shall not exceed fifteen (30) days pending a hearing under Title 13-7.7. 13-7.9 Permits Nontransferable. No permit granted pursuant to this title shall be transferable. Sidewalk vending permits are issued to persons, not vending carts. 13-7.10 Operating Requirements. Sidewalk vendors shall comply with the following: A. No sidewalk vendor shall vend in the following locations: 1. Any public property other than a sidewalk, including, without limitation, streets, alleys, plazas, and City-owned parking structures; 2. Within fifteen (15) feet of any street intersection or traffic signal; 3. Within fifteen (15) feet of any fire hydrant, fire call box, police call box, traffic signal controller, streetlight controller, or other emergency facility; 4. Within ten (10) feet of any driveway or driveway apron; 5. Upon or within any roadway, median strip, or dividing section; 6. Upon or within any parkway or landscaped areas lacking paved pathways for travel; 7. Within two hundred (200) feet of any other sidewalk vendor; 8. Within five hundred (500) feet of an area designated for a temporary special permit. This prohibition shall be limited to the duration of the temporary special permit; 9. Within five hundred (500) feet of the nearest property line of any property on which a place of worship or general child care facility is located while the same is in use; 10. Within five hundred (500) feet of the nearest property line of any property on which a school building or facility (public or private), including athletic field, is located while the same is in use, including afterschool child care, enrichment classes and sports, and not within one hour before school drop off or one hour after such operations listed above; City Council Regular Meeting - Page 199 of 268 11. Within one hundred (100) feet of a public picnic area, playground area, or playground equipment while the same is in use; 12. Within one hundred (100) feet of a public community center, athletic field, softball/baseball diamond, basketball court, handball court, tennis court, soccer field, or volleyball court while the same as in use; 13. Within one hundred (100) feet of a Los Angeles Sheriff, Los Angeles Firefighter, or emergency medical personnel who is actively performing his or her duties or providing services to the public; 14. If a stationary sidewalk vendor, within any sidewalk that is not a minimum width of eight (8) feet, exclusion of curb width; 15. Within one hundred (100) feet of the portion of any City facility that is renting merchandise to the public or where rental merchandise is stored; 16. Within twenty-five (25) feet of a litter receptacle, bike rack, or restroom; 17. Within twenty-five (25) feet of a door or emergency exit of any business during the hours that the business is open to the public or to persons having or conducting lawful business within the premises; 18. Within twenty-five (25) feet of a pedestrian entrance/exit or elevator lobby of a City-owned parking structure; 19. Within five (5) feet of metered parking along a curb; 20. With four (4) feet of non-metered parking along a curb; 21. Within three (3) feet of a red curb if not adjacent to a parking meter or loading zone or a curb if posted for permanent no parking; 22. Within one hundred (100) feet of an alley, parking lot or parking garage vehicle entrance/exit; 23. Within ten (10) feet of a marked crosswalk; 24. Within ten (10) feet of the curb return of an unmarked crosswalk; 25. Within forty (40) feet of a bus loading zone or staging zone during the time posted; 26. Within twenty-five (25) feet of a bus stop, trolley stop, taxi stand, bus bench, or bus shelter; 27. Within two hundred (200) feet of a Los Angeles Sheriff Station or Los Angeles Fire Station; 28. Within fifteen (15) feet of an automated teller machine or parking pay station; 29. If a stationary sidewalk vendor, within a park owned or operated by the City if the City has signed an agreement for concessions that exclusively permits the sale of food or merchandise by the concessionaire; 30. Within two hundred (200) feet of the Civic Center; 31. Within two hundred (200) feet of a backup City Emergency Operations Center, identified in the City’s Emergency Operations Plan, during the operational period; 32. If a stationary sidewalk vendor, within areas zoned exclusively for residential use or within two hundred (200) feet of any areas zoned exclusively for residential use; 33. Within one hundred (100) feet of an open air dining area; or 34. On private property without the consent of the property owner. City Council Regular Meeting - Page 200 of 268 B. No sidewalk vendor shall sell in a manner that blocks or obstructs the free movement of pedestrians or vehicles. Sidewalk vendors must at all times provide a clearance of not less than four (4) feet on all sidewalks or pedestrian areas so as to enable persons to freely pass while walking, running, or using mobility assistance devices; C. Sidewalk vending is only permitted between the hours of 8:00 a.m. and 10:00 p.m., daily, except as follows: 1. In residential areas, sidewalk vending shall only be permitted between the hours of 8:00 a.m. and 6:00 p.m. on weekdays and between the hours of 9:00 a.m. and 5:00 p.m. on weekends and holidays. 2. In nonresidential areas, the limit on hours of operation shall not be more restrictive than the hours of operation of other businesses or uses on the same street. 3. In park areas, sidewalk vending shall be permitted only during hours the park is open to the public. D. Stationary sidewalk vendors shall not vend in areas that are zoned exclusively residential. E. Stationary sidewalk vendors shall not vend at any park where the City has signed an agreement for concessions that exclusively permits the sale of food or merchandise by a concessionaire. F. A sidewalk vendor who vends any food other than prepacked food shall provide hand sanitizer for use by the sidewalk vendor and patrons. G. A stationary sidewalk vendor shall maintain a clearly designated litter receptacle in the immediate vicinity, marked with a sign requesting use by patrons. The litter receptacle must be large enough to accommodate customer litter without resort to existing litter receptacles located on any block for use by the general public. The vendor’s litter receptacle may not be left on the sidewalk upon leaving any vending location. The vendor shall not empty its litter receptacle into a City refuse container. H. A roaming sidewalk vendor vending from a vending cart shall maintain a litter receptacle attached to the vending cart large enough to accommodate customer litter without resort to existing litter receptacles located on any block for use by the general public and marked with a sign requesting use by patrons. The vendor shall not empty its litter receptacle into a City refuse container. I. Sidewalk vendors shall maintain a neat, sanitary, hazard and trash-free fifteen (15) foot radius of the vending location during hours of operation, and prior to leaving any vending location, the sidewalk vendor shall pick up, remove, and City Council Regular Meeting - Page 201 of 268 dispose of all litter generated by the vending operations within a fifteen (15) foot radius of the vending location in the sidewalk vendor’s litter receptacle. Sidewalk vendors shall not throw, deposit, or leave, or permit to be thrown, deposited, or left, any litter, food, or other discarded or abandoned objects, in or upon any street, sidewalk, gutter, storm drain, inlet, catch basin, or other drainage structure, or upon any public or private land in the City, so that the same might be or become a pollutant. J. Sidewalk vendors shall immediately clean up any food, grease, or other fluid or item related to sidewalk vending activities that falls on public property. K. If a stationary sidewalk vendor remains in place for one (1) hour or longer, the sidewalk vendor must be located within one hundred (100) feet of a publicly accessible restroom. L. Vendors of food or food products shall possess and display in plain view on the vending cart a valid Public Health Permit from the Los Angeles County Department of Public Health. M. Sidewalk vendors shall possess at all times while selling, a valid sidewalk vendor permit issued pursuant to this title, as well as any other permit or license required by the City and any other appropriate governmental agency. N. Sidewalk vendors shall possess at all times while selling, current liability insurance per Title 13-7.3(11). O. Sidewalk vendors shall comply with all applicable state and local laws, including without limitation state food preparation, handling, and labeling requirements; fire codes and regulations; noise standards; and the Americans with Disabilities Act of 1990 and other disability access standards (both state and federal). K. Vending carts shall not be chained, fastened, or affixed at any time to any building or structure, including, but not limited to lampposts, parking meters, traffic signals, fire hydrants, benches, bus shelters, trash cans, street signs, trees, or other objects within the public right-of-way. No vending cart shall become a permanent fixture on any site or be considered an improvement to real property. L. Sidewalk vendors must ensure that food and merchandise are securely fastened to the vending cart in such a manner that the food or merchandise does not fall off or extend outside of the frame of the vending cart. M. Vending carts shall not be placed on any public property other than a sidewalk. N. Vending carts shall not touch, lean against or be affixed at any time to any building or structure including, but not limited to poles, signs, trees, lampposts, City Council Regular Meeting - Page 202 of 268 parking meters, mailboxes, traffic signals, fire hydrants, benches, bus shelters, newsstands, trashcans or traffic barriers, or other objects on public property or in the public right-of-way. O. All signage and advertising related in any way to the sidewalk vendor must be attached to the vending cart or the sidewalk vendor’s person, and shall not be electrical, flashing, wind-powered or animated. P. A vending cart approved by the Los Angeles County Department of Health to vend one type or types of food may not be used to vend a different type of food. Q. Sidewalk vendors shall comply with all applicable state and local laws, as amended from time to time, including without limitation, Title 3-12 (Noise) of the Lynwood Municipal Code, Division I of Title 11 (County Health Code) and Division I of Title 8 (Public Health Licenses) of the Los Angeles County Code, state food labeling and preparation requirements, fire codes and regulations, and the Americans with Disabilities Act of 1990 (Public Law 101-336) and other disability access standards (both state and federal). R. Not including an attached litter receptacle, vending carts shall not exceed a length of four (4) feet, a width of four (4) feet, or a height, including a roof, umbrella, or awning, of ten (10) feet provided that any umbrella or awning shall be no less than seven (7) feet above the surface of the sidewalk. S. Vending carts shall not be accompanied by accessories, including, but not limited to, tables, chairs, benches and umbrellas except that one chair and one umbrella may be provided for the purpose of allowing the vendor or an employee to be seated in shade. T. Vending carts for food shall be stored in accordance with all requirements of the Los Angeles County Department of Public Health. U. Vending carts shall have locking wheels to prevent uncontrolled movement. V. Vending carts shall not be left unattended. W. Vending carts shall not be left overnight on any public property or right-of-way. X. Sidewalk vendors shall not engage in any of the following activities: 1. Using verbal or physical conduct that would cause a reasonable person to fear for his or her safety; 2. Intentionally causing unwanted physical contact with any member of the public; 3. Following a person who walks away after expressing a desire to not be vended to; City Council Regular Meeting - Page 203 of 268 4. Approaching a person on a bicycle, occupying a motor vehicle, or an emergency vehicle offering services to the public; 5. Approaching a person standing in line, seated in an outdoor dining area, or similarly stationary for a specific purpose, so that to a reasonable person, it is apparent that the purpose would be frustrated by relocation to avoid the sidewalk vendor; 6. Intentionally blocking the path of the person being vended to or who has expressed a desire to not be vended to; 7. Impeding or obstructing ingress to or egress from any private property or any structure, parking space or loading facility; 8. Renting merchandise to customers; 9. Vending lottery tickets, alcohol, cannabis, adult oriented material, or tobacco or electronic cigarette products; 10. Knowingly making false statements or misrepresentations during the course of vending; 11. Vending illegal or counterfeit merchandise; 12. Bartering, exchanging, selling, offering for sale, displaying for sale, or soliciting offers to purchase services; 13. In parks, interfering in any way with anyone engaged in a physical activity or approaching spectators who are watching a sporting activity to vend; 14. To prevent dangerous distractions, making any outcry, blowing a horn, ringing a bell, or using any sound device or musical instrument for the purpose of attracting the attention of potential patrons; 15. Damaging public or private property, including trees, shrubs, grass, flowers, plants or vegetation; 16. Causing vehicles to stop in traffic lanes or persons to stand in traffic lanes or parking spaces; or 17. Vending in a manner that blocks or obstructs the free movement of vehicles, including parked vehicles. 13-7.11 Commercial Vehicles. The operator of any commercial vehicle shall not vend, peddle, sell, or solicit any food, merchandise, goods, or services on a public street under the control of the City without conforming to all of the following: A. The vehicle owner or operator first shall have obtained a business license from the City and shall have paid any required license fees. B. The vehicle operator and any assistant thereto shall conduct such commercial activities only between the hours of 9:00 a.m. and 5:00 p.m. during standard time. Beginning with the annual observance of daylight savings time until the annual observance of the Labor Day holiday, licensed ice cream truck vendors may operate between the hours of 9:00 a.m. and 8:00 p.m. C. The vehicle operator shall first bring the vehicle to a complete stop, and shall have lawfully parked the vehicle adjacent to the street curb. City Council Regular Meeting - Page 204 of 268 D. The vehicle operator shall not remain or permit their vehicle to remain in any one location for more than 30 minutes and, upon the expiration of the 30 minutes, must move at least one-half mile from that location. In addition, the vehicle operator may not return to any location within a three-hour period. E. The vehicle operator shall not park the vehicle within five hundred (500) feet of a school (public or private) or park, or within two hundred (200) feet of another vehicle engaged in vending, peddling, selling, or soliciting. F. The vehicle owner or operator shall have obtained for each vehicle owned or operated thereby a comprehensive liability insurance policy which shall protect the owner, the operator and the city (as an additional insured) under the policy with types and amounts of coverage as follows: bodily injury and property damage liability insurance, five hundred thousand dollars ($500,000.00) for each person and two million dollars ($2,000,000.00) in the aggregate; personal injury liability, one million dollars ($1,000,000.00) each occurrence; workers’ compensation and employer’s liability, one million dollars ($1,000,000.00) each accident. The owner or operator of the vehicle shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the city as an additional insured under the policy, and shall contain a statement of obligation on the part of the insurance carrier to notify the business license division by certified mail, return receipt requested, of any material change, cancellation or termination of such insurance. The required certificate shall be furnished by the owner or operator of the vehicle to the business license division as a condition precedent to the business license division issuing a business license for such vending, peddling, selling or soliciting and a copy thereof shall be carried at all times in the vehicle. G. Every vehicle owner and operator shall consent to a background investigation by the City’s law enforcement personnel. H. Every vehicle owner or operator involved in the sale or provision of food products of any kind within the City shall obtain and openly display a health certificate and letter grade from the Los Angeles County Department of Health on each vehicle operated within the City for such purpose. I. Business licensing of mobile ice cream vendors is limited to fourteen (14) licenses within City limits. J. Each licensed mobile ice cream vendor owner or operator is limited to one ice cream vending vehicle. 13-7.12 Administrative Citations. City Council Regular Meeting - Page 205 of 268 A. A violation of any provision of this title by a sidewalk vendor who has a valid sidewalk vending permit or a commercial vehicle who has a valid business license from the City is punishable only by an administrative citation pursuant to Title 20-3 (Issuance of Administrative Citation, Fines) of the Lynwood Municipal Code in amounts not to exceed the following: 1. One hundred dollars ($100) for a first violation. 2. Two hundred dollars ($200) for a second violation within one year of the first violation. 3. Five hundred dollars ($500) for each additional violation within one year of the first violation. B. A person engaged in sidewalk vending without a valid City sidewalk vending permit or a commercial vehicle without a permit is punishable by an administrative citation in amounts not to exceed the following, in lieu of the amounts set forth in paragraph A: 1. Two hundred and fifty dollars ($250) for a first violation. 2. Five hundred dollars ($500) for a second violation within one year of the first violation. 3. One thousand dollars ($1,000) for each additional violation within one year of the first violation. 4. Upon proof of a valid sidewalk vending permit issued by the City, the administrative citations set forth in this paragraph shall be reduced to amounts set forth in paragraph A. C. As related to sidewalk vending only, a violation of this title shall not be punishable as an infraction or misdemeanor. No person alleged to have violated the provisions herein shall be subject to arrest except when otherwise permitted by law. D. As related to sidewalk vending only, failure to pay an administrative citation issued pursuant to this section shall not be punishable as an infraction or misdemeanor. Additional fines, fees, assessments, or any other financial conditions beyond those authorized herein shall not be assessed. E. As related to sidewalk vending only, when assessing administrative citations pursuant to this section, the Director shall take into consideration the person’s ability to pay the fine. The City shall provide the person with notice of his or her right to request an ability-to-pay determination and shall make available instructions or other materials for requesting an ability-to-pay determination. The person may request an ability-to-pay determination at adjudication or while the judgment remains unpaid, including when a case is delinquent or has been referred to a comprehensive collection program. F. As related to sidewalk vending only, if a person meets the criteria described in subdivision (a) or (b) of Government Code Section 68632, the City shall City Council Regular Meeting - Page 206 of 268 accept, in full satisfaction, twenty (20) percent of an administrative citation imposed pursuant to this title. G. As related to sidewalk vending only, the Director may waive the administrative citation or may offer an alternative disposition.” Section 3. Title 4-1 (Licensing and Business Regulations - Definitions) of the Lynwood Municipal Code is hereby amended to clarify that the definition of the term “Peddler” does not include sidewalk vendors, with all other definitions in Title 4-1 to remain unchanged, which shall read as follows: “PEDDLER. Any person, other than a sidewalk vendor operating with a valid permit issued in accordance with Title 13-7 (Sidewalk Vending), who goes from house to house, place to place, or in or along the streets within the city selling or making immediate delivery, or offering for sale and immediate delivery any goods, wares or merchandise or anything of value, in possession of the peddler, or offering to perform personal services to persons other than manufacturers, wholesalers, jobbers or retailers in such commodities.” Section 4. Title 7-20.17 (Sales From Carriers, Coaches Or Other Nonmotorized Vehicle On City Streets Prohibited) of Chapter 7 (Vehicles and Traffic) of the Lynwood Municipal Code is hereby amended to read as follows: “No person, firm, or corporation shall use a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance used for selling, whether mobile or stationary, in or on any public street, sidewalk or park in the City of Lynwood without a valid sidewalk vending permit issued in accordance with Title 13-7 (Sidewalk Vending).” Section 5. Title 10-10 (Permit Required to Conduct Business) of Chapter 10 (Parks and Recreation) of the Lynwood Municipal Code is hereby amended to provide that sidewalk vendors may operate in City Parks in accordance with Title 13-7 (Sidewalk Vending), with all other provisions of Chapter 10 to remain the same, which shall read as follows: “No person shall conduct, practice, carry on or solicit for any trade, occupation, business or profession in a City park without a valid sidewalk vending permit issued in accordance with Title 13-7 (Sidewalk Vending), or without the permission of the City Council.” Section 6. Title 13-11.5 (Exemptions) of Title 13-11.1 (Encroachments) of Chapter 13 (Streets and Sidewalks) of the Lynwood Municipal Code is hereby amended to add language clarifying that sidewalk vendors do not require encroachment permits, which shall read as follows: “This section shall not apply to: City Council Regular Meeting - Page 207 of 268 (A) United States mail boxes; (B) Public utility poles and facilities pursuant to rights granted by city or state law; (C) Portable garbage and rubbish receptacles or refuse when conforming to and placed for collection in accordance with the provisions of this code; and (D) Sidewalk vendors operating in accordance with Title 13-7.” Section 7. CEQA Findings. The City Council hereby finds and determines that this Urgency Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. Section 8. Severability. If any section, subsection, sentence, clause, or phrase of this Urgency Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Urgency Ordinance. The City Council hereby declares that it would have passed this Urgency Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Urgency Ordinance would be subsequently declared invalid or unconstitutional. Section 9. Effective Date. This Urgency Ordinance enacted under California Government Code section 65858(a) will take effect immediately upon adoption by a four- fifths (4/5) vote of the City Council. Section 10. Adoption. The City Clerk shall certify to the adoption of this Urgency Ordinance and shall cause it to be published and/or posted as required by law. (Signatures on Next Page) City Council Regular Meeting - Page 208 of 268 PASSED, APPROVED AND ADOPTED this 5th day of March 2018. ________________________________ Jose Luis Solache, Mayor ATTEST: _______________________________ Maria Quinonez, City Clerk APPROVED AS TO FORM APPROVED AS TO CONTENT _______________________________ ________________________________ Noel Tapia, City Attorney Jose Ometeotl, City Manager City Council Regular Meeting - Page 209 of 268 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 13-7 (VENDING, PEDDLING, SELLING AND/OR SOLICITING ON PUBLIC STREETS, SIDEWALKS, PARKS, PARKWAYS, MEDIANS, LANDS, PROPERTIES OR OTHER LANDS OR PROPERTIES UNDER THE CONTROL OF THE CITY) OF THE LYNWOOD MUNICIPAL CODE TO CREATE A SIDEWALK VENDING PROGRAM RECITALS I. Senate Bill (“SB”) 946 was signed into law on September 17, 2018, and became effective January 1, 2019. II. SB 946 limits the authority of cities and counties to regulate sidewalk vendors, except in accordance with California Government Code Sections 51038 and 51039. III. The City’s Municipal Code currently regulates sidewalk vendors in a manner that is inconsistent with SB 946. IV. The City Council finds that the establishment of a sidewalk vending program will benefit the City as a whole by facilitating entrepreneurship and providing economic opportunity for people to support themselves and their families, and by contributing to a diversity of food options and lively streets. V. The City Council finds that the act of vending on sidewalks and other areas of the public right-of-way also creates the potential for increased safety hazards, such as, but not limited to, inhibiting the ability of disabled individuals and other pedestrians to follow a safe path of travel; interfering with the performance of police, firefighter, and emergency medical personnel services; encouraging pedestrians to cross mid-block or stand in roadways to purchase food; and creating obstacles and contributing to congestion for pedestrian, vehicle, and bicycle traffic. VI. The City Council finds that restrictions on sidewalk vending are needed to accommodate vendors and their equipment, while also safeguarding the flow of pedestrian movement on sidewalks and in the public right-of-way, and ensuring no interference with the performance of police, firefighter, and emergency medical personnel. VII. The City Council finds that the regulation of vendors engaged in the sale of food and food products will help to ensure that sidewalk vendors obtain all necessary permits and comply with applicable sanitation, food preparation, and food handling laws, and thereby will protect the public health and safety against health problems City Council Regular Meeting - Page 210 of 268 such as food contamination, poor hygienic practices, and the threat of food poisoning. VIII. The City Council finds that regulations related to the collection and disposal of trash or other debris generated by sidewalk vending are necessary to ensure that such trash or debris is not left, thrown, discarded, or deposited on City streets, sidewalks, pathways, gutters, or storm drains, or upon public or private lots, so that the same might be or become a pollutant. IX. The City Council finds that restrictions on sidewalk vending in residential areas are necessary to ensure that such areas are protected from excessive noise and traffic impacts while allowing economic opportunities for sidewalk vendors. X. The City Council adopts this Ordinance under the authority provided in SB 946, and finds that the time, place, and manner regulations and requirements provided herein are directly related to the City’s purpose of protecting the health, safety, and welfare of its residents, businesses and visitors. XI. All legal prerequisites to the adoption of this Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Lynwood hereby finds and determines that all of the above Recitals are true and correct and incorporates such Recitals into this Ordinance. Section 2. Title 13-7 (Vending, Peddling, Selling and/or Soliciting on Public Streets, Sidewalks, Parks, Parkways, Medians, Lands, Properties or Other Lands or Properties Under the Control of the City) of the Lynwood Municipal Code is hereby repealed and replaced, which shall read as follows: “TITLE 13-7 VENDING, PEDDLING, SELLING AND/OR SOLICITING ON PUBLIC STREETS, SIDEWALKS, PARKS, PARKWAYS, MEDIANS, LANDS, PROPERTIES OR OTHER LANDS OR PROPERTIES UNDER THE CONTROL OF THE CITY 13-7.1 Definitions. The following words and phrases, whenever used in this title, shall mean as follows: CIVIC CENTER. The grounds, buildings, structures, and open space areas bounded by Bullis Road to the west, Ernestine Avenue to the east, Platt Avenue to the south (not including the R-2 zone), and the Lynwood Library/City Hall North boundaries to the north. DIRECTOR. The Community Development Director of the City of Lynwood. City Council Regular Meeting - Page 211 of 268 FOOD. Any type of raw, cooked, or processed edible substance, including any food product or beverage. JUNK FOOD. Any food or beverage that is low in essential nutrients, protein, vitamins or minerals and high in calories, sodium, sugar and fat. Junk Food includes, without limitation, soda, candy, chips, ice cream, hot dogs or processed meat, and chocolates. LOS ANGELES FIRE STATION. Any facility in the City of Lynwood where fire engines and other equipment of the Los Angeles Fire Department are housed. LOS ANGELES SHERIFF STATION. Any facility in the City of Lynwood where sheriff vehicles and other equipment of the Los Angeles Sheriff’s Department are housed. MERCHANDISE. Any tangible goods or items that are not food. PARK. An open space intended for public recreational use that is operated by the City of Lynwood. PERSON. One or more individuals, groups, businesses, business trusts, companies, corporations, joint ventures, joint stock companies, partnership, entities, associations, clubs, or organizations composed of two or more individuals (or the manager, lessee, agent, servant, officer, or employee of any of them), whether engaged in business, nonprofit, or any other activity. ROAMING SIDEWALK VENDOR. A roaming sidewalk vendor has the same meaning as set forth in Government Code Section 51036(b), and includes a sidewalk vendor who moves from place to place and stops only to complete a transaction. SIDEWALK. A public sidewalk or paved pedestrian path or walkway specifically designed for pedestrian travel. SIDEWALK VENDOR. A person who sells from a vending cart or from one’s person, upon a public sidewalk, parkway, pedestrian path, or other public right-of-way available to pedestrians. SIDEWALK VENDOR. A sidewalk vendor(s) or sidewalk vend(s) means a person who sells food or merchandise from a pushcart, stand, equipment, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one’s person, upon a public sidewalk or other pedestrian path. Sidewalk vendor includes “roaming sidewalk vendor” and “stationary sidewalk vendor.” “Sidewalk vendor permit” means a permit related to the use of a cart that is issued by the City in accordance with this chapter. STATIONARY CART. A stationary cart means a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance, that is intended to be City Council Regular Meeting - Page 212 of 268 operated from a fixed location by a stationary sidewalk vendor instead of being moved from place to place, where stops are limited to completing a transaction. STATIONARY SIDEWALK VENDOR. A stationary sidewalk vendor has the same meaning as set forth in Government Code Section 51036(c), and includes a sidewalk vendor who vends from a fixed location. SELL or SELLING. To sell, offer for sale, display for sale, or solicit offers to purchase, food, food products, beverages, goods, or merchandise. SWAP MEET. A location operated in accordance with Chapter 25 (Zoning) Article 200 of the Lynwood Municipal Code, and any regulations adopted pursuant to that chapter. TEMPORARY SPECIAL PERMIT. A permit issued by the City for the temporary use of, or encroachment on, the sidewalk or other public area, including but not limited to, an encroachment permit, special event permit, or temporary event permit, for purposes including, but not limited to, filming, parades, outdoor concerts, festivals, carnivals, and street fairs. VEND OR VENDING. To barter, exchange, sell, offer for sale, display for sale, or solicit offers to purchase, food or merchandise, or to require someone to negotiate, establish, or pay a fee before providing food or merchandise, even if characterized as a donation. VENDING CART. A pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance used for selling, whether mobile or stationary, that is not a vehicle as defined in the California Vehicle Code. 13-7.2 Permit Required. No person shall conduct or engage in sidewalk vending within the City without first obtaining a sidewalk vending permit pursuant to this title. 13-7.3 Sidewalk Vending Permit Application. A. To apply for a sidewalk vending permit, a person must file an application with the Director, or designee, accompanied by a nonrefundable application fee in an amount established by resolution of the City Council. The application shall be in a form prescribed by the Director and shall contain, at a minimum, the following: 1. The full legal name, current address, and telephone number of the applicant; 2. If the applicant is an agent of an individual, company, partnership, corporation, or other entity, the name and business address of the principal; 3. A copy of a California’s driver’s license or identification number, an individual taxpayer identification number, or a social security number. The document or number collected shall not be available to the public for inspection, is confidential, and shall not be disclosed except as required to administer the permit or comply with state law, or state/federal court order; City Council Regular Meeting - Page 213 of 268 4. A description, map, or drawing of the area(s)/route the applicant intends to operate; 5. A complete description of the food or merchandise offered for sale or exchange. Any applicant who intends to sell food must also provide proof of either a Food Handler Card or Certified Food Protection Manager certificate, where applicable, pursuant to Health and Safety Code Section 113700-114437, and a Mobile Food Facility permit certifying that the vending cart used has been approved by the Los Angeles County Department of Public Health for that particular type of food; 6. The dimensions of the vending cart; 7. A complete description of any ancillary items that the applicant intends to use in conjunction with sales including, without limitation, trash receptacles, chairs, umbrellas and umbrella stands, or similar items; 8. The hours per day and the days per week during which the sidewalk vendor proposes to operate, and whether the applicant intends to operate as a stationary sidewalk vendor and/or a roaming sidewalk vendor; 9. A California seller’s permit number pursuant to Section 6067 of the Revenue and Taxation Code; 10. Certification by the applicant that the information contained in the application is true to his or her knowledge and belief; 11. Proof of a policy or policies of comprehensive general liability insurance with minimum limits of one million dollars ($1,000,000) per occurrence, combined single limit coverage and two million dollars ($2,000,000) in the aggregate against any injury, death, loss or damage as a result of wrongful or negligent acts or omissions by the applicant, with an endorsement naming the City as an additional insured. In addition, to the extent required, the applicant shall carry workers’ compensation sufficient to meet requirements of the State of California; 12. An agreement by the applicant to indemnify and hold harmless the City, its officers and employees, for any damage or injury caused to the City or to third parties as a result of the sidewalk vending conduct or activity as approved by Lynwood’s City Attorney; 13. Certification by the applicant, under penalty of perjury, that the information contained in the application is true to his or her knowledge and belief; and 14. Any other reasonable information regarding the time, place, and manner of the proposed vending. B. Complete applications must be submitted to the Director, or designee. Only complete applications will be considered. An application is complete if it includes all required information together with full payment of the nonrefundable application fee. Applications will be considered in the order they are received. The City may require supplemental information from any applicant before deeming an application complete. If supplemental information is requested, it must be provided to the Director, or designee, within seven business days of the request. City Council Regular Meeting - Page 214 of 268 C. The City may deny any application that is incomplete or that does not comply with all applicable requirements. The City may request and obtain supplemental information from any applicant before making a decision on the application. D. Applicants must agree to abide by the operational requirements stated in Title 13- 7.10. E. Sidewalk vendors cannot be permitted as a permanent or proprietary location in any property within the City. 13-7.4 Criteria for Approval, Denial, or Revocation of Permit. The Director, or his or her designee, shall approve the issuance of a permit unless he or she determines that: A. The applicant has been convicted of any felony or misdemeanor, and has not subsequently demonstrated rehabilitative characteristics; B. Information contained in the application, or supplemental information requested from the applicant, is false in any material detail; C. The applicant has failed to provide a complete application, after having been notified of the requirement to produce additional information or documents; D. The applicant has failed to demonstrate an ability to conform to the operating standards set forth in Title 13-7.9. E. The conduct of the sidewalk vendor will unduly interfere with traffic or pedestrian movement, or tend to interfere with or endanger the public peace or rights of nearby residents to the quiet and peaceable enjoyment of their property; F. If the application is for the renewal of a permit or a subsequent permit, the applicant has failed to pay all previous administrative fines, completed all community service or completed any other alternative disposition associated in any way with a previous violation of this article; or G. If the application is for the renewal of a permit or a subsequent permit, the applicant has had a permit issued under this article rescinded within the last twelve (12) months. If the permit is denied, written notice of such denial and the reasons therefor shall be provided to the applicant. 13-7.5 Permit Expiration and Renewal. A sidewalk vending permit shall be valid for twelve (12) months from the date of issuance, and shall expire and become null and void on the anniversary of its issuance. A person may apply for a permit renewal, on a City Council Regular Meeting - Page 215 of 268 form provided by the City, prior to the expiration of his or her active sidewalk vending permit and pay the related nonrefundable application renewal fee. 13-7.6 Permit Rescission. The Director may rescind a permit issued to a sidewalk vendor on a fourth or subsequent violation of this title. A sidewalk vendor whose permit is rescinded may apply for a new sidewalk vending permit upon the expiration of the term of the rescinded permit. 13-7.7 Appeals. Any person aggrieved by the decision of the Director to issue, deny issuance, or rescind a sidewalk vending permit may appeal the decision to the City Council. The appeal shall be filed with the City Clerk within fourteen (14) days following the date of the Director’s decision. 13-7.8 Emergency Temporary Suspension of Permit. Where the conduct or the activity of the permittee creates an imminent peril to the public health or safety, a permit issued pursuant to this title may be summarily suspended upon notice to the permittee, provided that the permittee shall be entitled to a hearing within three (3) days thereafter and any emergency suspension shall not exceed fifteen (30) days pending a hearing under Title 13-7.7. 13-7.9 Permits Nontransferable. No permit granted pursuant to this title shall be transferable. Sidewalk vending permits are issued to persons, not vending carts. 13-7.10 Operating Requirements. Sidewalk vendors shall comply with the following: A. No sidewalk vendor shall vend in the following locations: 1. Any public property other than a sidewalk, including, without limitation, streets, alleys, plazas, and City-owned parking structures; 2. Within fifteen (15) feet of any street intersection or traffic signal; 3. Within fifteen (15) feet of any fire hydrant, fire call box, police call box, traffic signal controller, streetlight controller, or other emergency facility; 4. Within ten (10) feet of any driveway or driveway apron; 5. Upon or within any roadway, median strip, or dividing section; 6. Upon or within any parkway or landscaped areas lacking paved pathways for travel; 7. Within two hundred (200) feet of any other sidewalk vendor; 8. Within five hundred (500) feet of an area designated for a temporary special permit. This prohibition shall be limited to the duration of the temporary special permit; 9. Within five hundred (500) feet of the nearest property line of any property on which a place of worship or general child care facility is located while the same is in use; 10. Within five hundred (500) feet of the nearest property line of any property on which a school building or facility (public or private), including athletic City Council Regular Meeting - Page 216 of 268 field, is located while the same is in use, including afterschool child care, enrichment classes and sports, and not within one hour before school drop off or one hour after such operations listed above; 11. Within one hundred (100) feet of a public picnic area, playground area, or playground equipment while the same is in use; 12. Within one hundred (100) feet of a public community center, athletic field, softball/baseball diamond, basketball court, handball court, tennis court, soccer field, or volleyball court while the same as in use; 13. Within one hundred (100) feet of a Los Angeles Sheriff, Los Angeles Firefighter, or emergency medical personnel who is actively performing his or her duties or providing services to the public; 14. If a stationary sidewalk vendor, within any sidewalk that is not a minimum width of eight (8) feet, exclusion of curb width; 15. Within one hundred (100) feet of the portion of any City facility that is renting merchandise to the public or where rental merchandise is stored; 16. Within twenty-five (25) feet of a litter receptacle, bike rack, or restroom; 17. Within twenty-five (25) feet of a door or emergency exit of any business during the hours that the business is open to the public or to persons having or conducting lawful business within the premises; 18. Within twenty-five (25) feet of a pedestrian entrance/exit or elevator lobby of a City-owned parking structure; 19. Within five (5) feet of metered parking along a curb; 20. With four (4) feet of non-metered parking along a curb; 21. Within three (3) feet of a red curb if not adjacent to a parking meter or loading zone or a curb if posted for permanent no parking; 22. Within one hundred (100) feet of an alley, parking lot or parking garage vehicle entrance/exit; 23. Within ten (10) feet of a marked crosswalk; 24. Within ten (10) feet of the curb return of an unmarked crosswalk; 25. Within forty (40) feet of a bus loading zone or staging zone during the time posted; 26. Within twenty-five (25) feet of a bus stop, trolley stop, taxi stand, bus bench, or bus shelter; 27. Within two hundred (200) feet of a Los Angeles Sheriff Station or Los Angeles Fire Station; 28. Within fifteen (15) feet of an automated teller machine or parking pay station; 29. If a stationary sidewalk vendor, within a park owned or operated by the City if the City has signed an agreement for concessions that exclusively permits the sale of food or merchandise by the concessionaire; 30. Within two hundred (200) feet of the Civic Center; 31. Within two hundred (200) feet of a backup City Emergency Operations Center, identified in the City’s Emergency Operations Plan, during the operational period; City Council Regular Meeting - Page 217 of 268 32. If a stationary sidewalk vendor, within areas zoned exclusively for residential use or within two hundred (200) feet of any areas zoned exclusively for residential use; 33. Within one hundred (100) feet of an open air dining area; or 34. On private property without the consent of the property owner. B. No sidewalk vendor shall sell in a manner that blocks or obstructs the free movement of pedestrians or vehicles. Sidewalk vendors must at all times provide a clearance of not less than four (4) feet on all sidewalks or pedestrian areas so as to enable persons to freely pass while walking, running, or using mobility assistance devices; C. Sidewalk vending is only permitted between the hours of 8:00 a.m. and 10:00 p.m., daily, except as follows: 1. In residential areas, sidewalk vending shall only be permitted between the hours of 8:00 a.m. and 6:00 p.m. on weekdays and between the hours of 9:00 a.m. and 5:00 p.m. on weekends and holidays. 2. In nonresidential areas, the limit on hours of operation shall not be more restrictive than the hours of operation of other businesses or uses on the same street. 3. In park areas, sidewalk vending shall be permitted only during hours the park is open to the public. D. Stationary sidewalk vendors shall not vend in areas that are zoned exclusively residential. E. Stationary sidewalk vendors shall not vend at any park where the City has signed an agreement for concessions that exclusively permits the sale of food or merchandise by a concessionaire. F. A sidewalk vendor who vends any food other than prepacked food shall provide hand sanitizer for use by the sidewalk vendor and patrons. G. A stationary sidewalk vendor shall maintain a clearly designated litter receptacle in the immediate vicinity, marked with a sign requesting use by patrons. The litter receptacle must be large enough to accommodate customer litter without resort to existing litter receptacles located on any block for use by the general public. The vendor’s litter receptacle may not be left on the sidewalk upon leaving any vending location. The vendor shall not empty its litter receptacle into a City refuse container. H. A roaming sidewalk vendor vending from a vending cart shall maintain a litter receptacle attached to the vending cart large enough to accommodate customer litter without resort to existing litter receptacles located on any block for use by City Council Regular Meeting - Page 218 of 268 the general public and marked with a sign requesting use by patrons. The vendor shall not empty its litter receptacle into a City refuse container. I. Sidewalk vendors shall maintain a neat, sanitary, hazard and trash-free fifteen (15) foot radius of the vending location during hours of operation, and prior to leaving any vending location, the sidewalk vendor shall pick up, remove, and dispose of all litter generated by the vending operations within a fifteen (15) foot radius of the vending location in the sidewalk vendor’s litter receptacle. Sidewalk vendors shall not throw, deposit, or leave, or permit to be thrown, deposited, or left, any litter, food, or other discarded or abandoned objects, in or upon any street, sidewalk, gutter, storm drain, inlet, catch basin, or other drainage structure, or upon any public or private land in the City, so that the same might be or become a pollutant. J. Sidewalk vendors shall immediately clean up any food, grease, or other fluid or item related to sidewalk vending activities that falls on public property. K. If a stationary sidewalk vendor remains in place for one (1) hour or longer, the sidewalk vendor must be located within one hundred (100) feet of a publicly accessible restroom. L. Vendors of food or food products shall possess and display in plain view on the vending cart a valid Public Health Permit from the Los Angeles County Department of Public Health. M. Sidewalk vendors shall possess at all times while selling, a valid sidewalk vendor permit issued pursuant to this title, as well as any other permit or license required by the City and any other appropriate governmental agency. N. Sidewalk vendors shall possess at all times while selling, current liability insurance per Title 13-7.3(11). O. Sidewalk vendors shall comply with all applicable state and local laws, including without limitation state food preparation, handling, and labeling requirements; fire codes and regulations; noise standards; and the Americans with Disabilities Act of 1990 and other disability access standards (both state and federal). K. Vending carts shall not be chained, fastened, or affixed at any time to any building or structure, including, but not limited to lampposts, parking meters, traffic signals, fire hydrants, benches, bus shelters, trash cans, street signs, trees, or other objects within the public right-of-way. No vending cart shall become a permanent fixture on any site or be considered an improvement to real property. City Council Regular Meeting - Page 219 of 268 L. Sidewalk vendors must ensure that food and merchandise are securely fastened to the vending cart in such a manner that the food or merchandise does not fall off or extend outside of the frame of the vending cart. M. Vending carts shall not be placed on any public property other than a sidewalk. N. Vending carts shall not touch, lean against or be affixed at any time to any building or structure including, but not limited to poles, signs, trees, lampposts, parking meters, mailboxes, traffic signals, fire hydrants, benches, bus shelters, newsstands, trashcans or traffic barriers, or other objects on public property or in the public right-of-way. O. All signage and advertising related in any way to the sidewalk vendor must be attached to the vending cart or the sidewalk vendor’s person, and shall not be electrical, flashing, wind-powered or animated. P. A vending cart approved by the Los Angeles County Department of Health to vend one type or types of food may not be used to vend a different type of food. Q. Sidewalk vendors shall comply with all applicable state and local laws, as amended from time to time, including without limitation, Title 3-12 (Noise) of the Lynwood Municipal Code, Division I of Title 11 (County Health Code) and Division I of Title 8 (Public Health Licenses) of the Los Angeles County Code, state food labeling and preparation requirements, fire codes and regulations, and the Americans with Disabilities Act of 1990 (Public Law 101-336) and other disability access standards (both state and federal). R. Not including an attached litter receptacle, vending carts shall not exceed a length of four (4) feet, a width of four (4) feet, or a height, including a roof, umbrella, or awning, of ten (10) feet provided that any umbrella or awning shall be no less than seven (7) feet above the surface of the sidewalk. S. Vending carts shall not be accompanied by accessories, including, but not limited to, tables, chairs, benches and umbrellas except that one chair and one umbrella may be provided for the purpose of allowing the vendor or an employee to be seated in shade. T. Vending carts for food shall be stored in accordance with all requirements of the Los Angeles County Department of Public Health. U. Vending carts shall have locking wheels to prevent uncontrolled movement. V. Vending carts shall not be left unattended. W. Vending carts shall not be left overnight on any public property or right-of-way. City Council Regular Meeting - Page 220 of 268 X. Sidewalk vendors shall not engage in any of the following activities: 1. Using verbal or physical conduct that would cause a reasonable person to fear for his or her safety; 2. Intentionally causing unwanted physical contact with any member of the public; 3. Following a person who walks away after expressing a desire to not be vended to; 4. Approaching a person on a bicycle, occupying a motor vehicle, or an emergency vehicle offering services to the public; 5. Approaching a person standing in line, seated in an outdoor dining area, or similarly stationary for a specific purpose, so that to a reasonable person, it is apparent that the purpose would be frustrated by relocation to avoid the sidewalk vendor; 6. Intentionally blocking the path of the person being vended to or who has expressed a desire to not be vended to; 7. Impeding or obstructing ingress to or egress from any private property or any structure, parking space or loading facility; 8. Renting merchandise to customers; 9. Vending lottery tickets, alcohol, cannabis, adult oriented material, or tobacco or electronic cigarette products; 10. Knowingly making false statements or misrepresentations during the course of vending; 11. Vending illegal or counterfeit merchandise; 12. Bartering, exchanging, selling, offering for sale, displaying for sale, or soliciting offers to purchase services; 13. In parks, interfering in any way with anyone engaged in a physical activity or approaching spectators who are watching a sporting activity to vend; 14. To prevent dangerous distractions, making any outcry, blowing a horn, ringing a bell, or using any sound device or musical instrument for the purpose of attracting the attention of potential patrons; 15. Damaging public or private property, including trees, shrubs, grass, flowers, plants or vegetation; 16. Causing vehicles to stop in traffic lanes or persons to stand in traffic lanes or parking spaces; or 17. Vending in a manner that blocks or obstructs the free movement of vehicles, including parked vehicles. 13-7.11 Commercial Vehicles. The operator of any commercial vehicle shall not vend, peddle, sell, or solicit any food, merchandise, goods, or services on a public street under the control of the City without conforming to all of the following: A. The vehicle owner or operator first shall have obtained a business license from the City and shall have paid any required license fees. City Council Regular Meeting - Page 221 of 268 B. The vehicle operator and any assistant thereto shall conduct such commercial activities only between the hours of 9:00 a.m. and 5:00 p.m. during standard time. Beginning with the annual observance of daylight savings time until the annual observance of the Labor Day holiday, licensed ice cream truck vendors may operate between the hours of 9:00 a.m. and 8:00 p.m. C. The vehicle operator shall first bring the vehicle to a complete stop, and shall have lawfully parked the vehicle adjacent to the street curb. D. The vehicle operator shall not remain or permit their vehicle to remain in any one location for more than 30 minutes and, upon the expiration of the 30 minutes, must move at least one-half mile from that location. In addition, the vehicle operator may not return to any location within a three-hour period. E. The vehicle operator shall not park the vehicle within five hundred (500) feet of a school (public or private) or park, or within two hundred (200) feet of another vehicle engaged in vending, peddling, selling, or soliciting. F. The vehicle owner or operator shall have obtained for each vehicle owned or operated thereby a comprehensive liability insurance policy which shall protect the owner, the operator and the city (as an additional insured) under the policy with types and amounts of coverage as follows: bodily injury and property damage liability insurance, five hundred thousand dollars ($500,000.00) for each person and two million dollars ($2,000,000.00) in the aggregate; personal injury liability, one million dollars ($1,000,000.00) each occurrence; workers’ compensation and employer’s liability, one million dollars ($1,000,000.00) each accident. The owner or operator of the vehicle shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the city as an additional insured under the policy, and shall contain a statement of obligation on the part of the insurance carrier to notify the business license division by certified mail, return receipt requested, of any material change, cancellation or termination of such insurance. The required certificate shall be furnished by the owner or operator of the vehicle to the business license division as a condition precedent to the business license division issuing a business license for such vending, peddling, selling or soliciting and a copy thereof shall be carried at all times in the vehicle. G. Every vehicle owner and operator shall consent to a background investigation by the City’s law enforcement personnel. H. Every vehicle owner or operator involved in the sale or provision of food products of any kind within the City shall obtain and openly display a health certificate and letter grade from the Los Angeles County Department of Health on each vehicle operated within the City for such purpose. City Council Regular Meeting - Page 222 of 268 I. Business licensing of mobile ice cream vendors is limited to fourteen (14) licenses within City limits. J. Each licensed mobile ice cream vendor owner or operator is limited to one ice cream vending vehicle. 13-7.12 Administrative Citations. A. A violation of any provision of this title by a sidewalk vendor who has a valid sidewalk vending permit or a commercial vehicle who has a valid business license from the City is punishable only by an administrative citation pursuant to Title 20-3 (Issuance of Administrative Citation, Fines) of the Lynwood Municipal Code in amounts not to exceed the following: 1. One hundred dollars ($100) for a first violation. 2. Two hundred dollars ($200) for a second violation within one year of the first violation. 3. Five hundred dollars ($500) for each additional violation within one year of the first violation. B. A person engaged in sidewalk vending without a valid City sidewalk vending permit or a commercial vehicle without a permit is punishable by an administrative citation in amounts not to exceed the following, in lieu of the amounts set forth in paragraph A: 1. Two hundred and fifty dollars ($250) for a first violation. 2. Five hundred dollars ($500) for a second violation within one year of the first violation. 3. One thousand dollars ($1,000) for each additional violation within one year of the first violation. 4. Upon proof of a valid sidewalk vending permit issued by the City, the administrative citations set forth in this paragraph shall be reduced to amounts set forth in paragraph A. C. As related to sidewalk vending only, a violation of this title shall not be punishable as an infraction or misdemeanor. No person alleged to have violated the provisions herein shall be subject to arrest except when otherwise permitted by law. D. As related to sidewalk vending only, failure to pay an administrative citation issued pursuant to this section shall not be punishable as an infraction or misdemeanor. Additional fines, fees, assessments, or any other financial conditions beyond those authorized herein shall not be assessed. E. As related to sidewalk vending only, when assessing administrative citations pursuant to this section, the Director shall take into consideration the person’s ability to pay the fine. The City shall provide the person with notice of his or her right to request an ability-to-pay determination and shall make available City Council Regular Meeting - Page 223 of 268 instructions or other materials for requesting an ability-to-pay determination. The person may request an ability-to-pay determination at adjudication or while the judgment remains unpaid, including when a case is delinquent or has been referred to a comprehensive collection program. F. As related to sidewalk vending only, if a person meets the criteria described in subdivision (a) or (b) of Government Code Section 68632, the City shall accept, in full satisfaction, twenty (20) percent of an administrative citation imposed pursuant to this title. G. As related to sidewalk vending only, the Director may waive the administrative citation or may offer an alternative disposition.” Section 3. Title 4-1 (Licensing and Business Regulations - Definitions) of the Lynwood Municipal Code is hereby amended to clarify that the definition of the term “Peddler” does not include sidewalk vendors, with all other definitions in Title 4-1 to remain unchanged, which shall read as follows: “PEDDLER. Any person, other than a sidewalk vendor operating with a valid permit issued in accordance with Title 13-7 (Sidewalk Vending), who goes from house to house, place to place, or in or along the streets within the city selling or making immediate delivery, or offering for sale and immediate delivery any goods, wares or merchandise or anything of value, in possession of the peddler, or offering to perform personal services to persons other than manufacturers, wholesalers, jobbers or retailers in such commodities.” Section 4. Title 7-20.17 (Sales From Carriers, Coaches Or Other Nonmotorized Vehicle On City Streets Prohibited) of Chapter 7 (Vehicles and Traffic) of the Lynwood Municipal Code is hereby amended to read as follows: “No person, firm, or corporation shall use a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance used for selling, whether mobile or stationary, in or on any public street, sidewalk or park in the City of Lynwood without a valid sidewalk vending permit issued in accordance with Title 13-7 (Sidewalk Vending).” Section 5. Title 10-10 (Permit Required to Conduct Business) of Chapter 10 (Parks and Recreation) of the Lynwood Municipal Code is hereby amended to provide that sidewalk vendors may operate in City Parks in accordance with Title 13-7 (Sidewalk Vending), with all other provisions of Chapter 10 to remain the same, which shall read as follows: “No person shall conduct, practice, carry on or solicit for any trade, occupation, business or profession in a City park without a valid sidewalk vending permit issued in accordance with Title 13-7 (Sidewalk Vending), or without the permission of the City Council.” City Council Regular Meeting - Page 224 of 268 Section 6. Title 13-11.5 (Exemptions) of Title 13-11.1 (Encroachments) of Chapter 13 (Streets and Sidewalks) of the Lynwood Municipal Code is hereby amended to add language clarifying that sidewalk vendors do not require encroachment permits, which shall read as follows: “This section shall not apply to: (A) United States mail boxes; (B) Public utility poles and facilities pursuant to rights granted by city or state law; (C) Portable garbage and rubbish receptacles or refuse when conforming to and placed for collection in accordance with the provisions of this code; and (D) Sidewalk vendors operating in accordance with Title 13-7.” Section 7. CEQA Findings. The City Council hereby finds and determines that this Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. Section 8. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. Section 9. Effective Date. The City Clerk shall certify to the passage of this Ordinance and shall cause this ordinance to be published and/or posted as required by law and said Ordinance shall become effective 30 days after its passage. (Signatures on Next Page) City Council Regular Meeting - Page 225 of 268 PASSED, APPROVED AND ADOPTED this ____ day of March 2018. ________________________________ Jose Luis Solache, Mayor ATTEST: _______________________________ Maria Quinonez, City Clerk APPROVED AS TO FORM APPROVED AS TO CONTENT _______________________________ ________________________________ Noel Tapia, City Attorney Jose Ometeotl, City Manager City Council Regular Meeting - Page 226 of 268 Agenda Item # 16. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: Michelle G. Ramirez, Director of Community Development SUBJECT: PROPOSED REVISION TO THE LYNWOOD MUNICIPAL CODE TITLE 3-31 MOTEL/HOTEL Recommendation: Staff recommends that the City Council: 1. INTRODUCE the attached Ordinance for First Reading, by title only, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 3-31 (MOTEL/HOTEL) OF THE LYNWOOD MUNICIPAL CODE." 2. DETERMINE that approval of the attached Ordinance is Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) as the adoption of this Ordinance has no potential for causing a significant effect on the environment. Background: To ensure the proper maintenance of motels/hotels while protecting the health, safety and welfare of motel/hotel inhabitants, revisions to the Title 3-31 "Motel/Hotel Occupancy" of the Lynwood Municipal Code are needed. These revisions to the ordinance will provide for the continued availability of safe and decent transient lodging within the City. Discussion and Analysis: The City strives to ensure that the properties located within Lynwood are kept in a safe, decent, and sanitary condition. Recently, staff has notice a decline in the upkeep to the motels/hotels within our City. The City currently has twenty-two (22) motels/hotels in a little over 4.8 square miles. As a result, the City's Public Safety Division has begun inspecting each motel/hotel for code compliance. In conducting these inspections, staff is finding that a majority of the motels/hotels have issues with property maintenance, record management, and illegal construction. To ensure the continued availability of quality transient lodging within the City and the proper maintenance of motels/hotels, staff is proposing a number of revisions to Title 3-31 "Motel/Hotel Occupancy" of the Lynwood City Council Regular Meeting - Page 227 of 268 Municipal Code. These changes are essential in protecting the health, safety, and welfare of motel/hotel inhabitants; as well as, strengthening the City's stance on property maintenance, record management, and the citation process. California Environmental Quality Act The adoption of the proposed ordinance is covered by the “general rule” that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. Staff’s determination is that it can be seen with certainty that there is no possibility that the proposed regulations contained in the ordinance will have a significant effect on the environment. Therefore, the adoption of this ordinance is exempt from CEQA pursuant to Section 15061(b)(3) as it has no potential for causing a significant effect on the environment. Public Notice Process This item has been noticed through the regular agenda notification process. Fiscal Impact: There is no fiscal impact. Coordinated With: City Manager City Attorney ATTACHMENTS: Description Attachment A - Ordinance City Council Regular Meeting - Page 228 of 268 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA REPEALING AND REPLACING TITLE 3-31 (MOTEL/HOTEL OCCUPANCY) OF THE LYNWOOD MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Title 3-31 (Motel/Hotel) of the Lynwood Municipal Code is hereby repealed and replaced, which shall read as follows: 3-31 MOTEL/HOTEL OCCUPANCY: 3-31.1 Definitions. As used in this section: City shall mean the City of Lynwood. Guest shall mean any person who occupies or pays rent for a “guestroom” in a motel or hotel, as defined in this subsection. Guestroom shall mean any portion of a motel or hotel, which is occupied or designed or intended for occupancy by a person for temporary lodging or sleeping purposes, including, but not limited to, suite, room, or bed. Motel/Hotel shall mean any public or private space or structure or groups of structures for living therein, including, but not limiting to, any inn, motel, tourist home or house, motel rooming house, mobilehome or other living place within the City, offering the right to use or occupy such space for lodging, sleeping or overnight accommodations wherein the owner or operator thereof, for compensation, furnishes such right of use or occupancy to any person. “Hotel/motel” does not include any hospital, convalescent home or sanitarium. Occupancy shall mean the use or possession, or the right to the use or possession of any space, structure, guestroom(s) or room(s) or portions thereof, in any motel or hotel for dwelling, lodging or sleeping purposes. Operator shall mean any person(s), as either an individual or other entity, who is proprietor of a motel or hotel, whether in a capacity of owner of the motel or hotel, owner of the real property, lessee, sub-lessee, franchisee, and mortgagee in possession, licensee, manager, agent or any other capacity. Where the Operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this section and shall have the same duties and liabilities as his or her principal. City Council Regular Meeting - Page 229 of 268 Rent shall mean the consideration charged, whether or not received, for the occupancy of a guestroom valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits, and property and service of any kind or nature, without any deduction therefrom whatsoever. Sheriff’s Department shall mean the Los Angeles County sheriff’s department, or any other successor law enforcement agency. 3-31.2 Purpose and Intent. The purpose of this chapter is to establish operational standards and requirements for motels and hotels, to ensure the continued availability of transient visitor lodging within the City and continued use of motels and hotels in the manner intended to provide such lodging. • 3-31-3 - Operational Standards. The operational standards contained in this section shall apply to all motels and hotels in the City. Each owner and operator shall be responsible for insuring that the hotel or motel he or she owns or operates is operated in compliance with this chapter. 3-31.4 Renting Rooms in Excess of Thirty Days Prohibited. No rooms shall be rented to persons whose occupancy exceeds thirty (30) consecutive days or exceeds thirty (30) days in any sixty (60) consecutive day period, unless such extended occupancy is authorized pursuant to a conditional use permit as provided in Title 25-130. This provision shall not apply to a maximum of one unit per motel or hotel designated for a manager's occupancy. 3-31.5 On-Site Management. On-site management shall be available twenty-four (24) hours a day. 3-31.6 Housekeeping Service. Each guest room shall be provided regularly scheduled maid and housekeeping services. Such services shall be provided at least once every three days during any consecutive occupancy and at least once between each occupancy. The operator of each motel or hotel within the City shall maintain a weekly summary sheet for each room that contains the date the room received housekeeping services. 3-31.7 Telephone Service. In-room telephone service for emergency response purposes shall be provided in all guestrooms. 3-31.8 Registers. 1. Required: No operator shall rent or assign any guestroom to any person, until after such person provides all of the information in subsection 3-31.8(2) of this section. City Council Regular Meeting - Page 230 of 268 2. Register Information: Every operator of any motel or hotel shall keep a register in which the following shall be entered: a. The name and permanent address of every person who is entitled to occupy each guestroom; and b. A copy or photograph of valid identification such as a California driver’s license; and c. The license plate number, state of license plate, make, model, and year of all registered guest vehicles parked on-site or off-site; and d. The total number of people who are entitled to occupy each guestroom; and e. The hour, day, month, and year of arrival and departure of each named guest; and f. The room number or other identifying symbol of location of the guestroom rented or assigned to each named guest; and g. The daily rate charged and amount collected for rental of the guestroom assigned to each named guest. 3. Daily Summary Sheets: The operator of each motel or hotel within the City shall maintain a daily summary sheet for each day the motel or hotel is open for business containing, at a minimum, the following information: a. The name of all person(s) entitled to occupancy of each guestroom which is rented or occupied that day; and b. The room number; and b. The daily rate and amount paid for the rental of the room; and c. The number of the registration card applicable to the rental of the guestroom; and d. The guest’s vehicle license plate number, make and model, if any. 4. Register Retention: a. Every operator of a motel or hotel shall keep the register, which is required under subsection 3-31.8(1) of this section, available and in good condition for a period of not less than three (3) years from the entry of all required guest information. b. The register may be maintained in the form of registration cards, provided all requirements of this section are otherwise met. Registration cards shall bear consecutive numbers that shall be preprinted on the registration cards by a print shop or manufacturer of the cards. 5. Right Of Inspection: a. Registration records and daily summary sheets shall be available at all times for inspection by any member of the Sheriff’s Department or any authorized or designated representative of the City of Lynwood. b. No person shall alter, deface or erase such a register so as to make the information recorded therein illegible or unintelligible. 6. Registration Under Fictitious Name: It shall be unlawful for any person to register at any motel or hotel in the City under the name of any other person, or of a fictitious person, or to sign or cause to be signed, any assumed false or fictitious name, or any name other than the true and correct name of the person so registering or so signing or causing his/her name to be signed. City Council Regular Meeting - Page 231 of 268 7. Registration Under False Address: It shall be unlawful for any person to register at any motel or hotel in the City under an address other than their own. 3-31.9 Posting of Identification of Operator. The name, business address and business telephone number of the operator must be posted in a conspicuous location in the motel or hotel registration and/or lobby area. The operator must provide to employees of the motel or hotel a telephone number where the operator or his or her representative may be reached during any time the motel or hotel is in operation. Failure to post or to provide the information required in this section is punishable pursuant to subsection 3-31.15 of this section. 3-31.10 Repeat Use of Room Prohibited. No room, suite, or bed shall be assigned or rented more than twice within any twenty-four (24) hour period. 3-31.11 Hourly Rates Prohibited. No room shall be rented for hourly or other short-time rates (less than twenty-four hours) nor advertised in anyway to be available at hourly or other short-time rates (less than twenty-four hours). 3-31.12 Commercial Use of Guest Rooms Prohibited. Except as may otherwise be expressly authorized by conditions of approval of a conditional use permit, no person in occupancy of a motel or hotel room shall engage in commercial use of a guestroom. 3-31.13 Food Preparation Equipment Prohibited. Except as may otherwise be expressly authorized by conditions of approval of a conditional use permit, no appliances for preparation of meals shall be permitted in any guestroom, provided, however, that small refrigerators for drinks, coffee makers and small microwave ovens which are not large enough for actual preparation of meals are not prohibited by this section. 3-31.14 Renting of Room to Person Under the Age of Eighteen Years Prohibited. Renting of rooms to persons under the age of eighteen (18) years is prohibited. Any operator of any motel or hotel in the City shall not allow any room or rooms to be occupied by any person under the age of eighteen (18) years, unless such person is accompanied by his or her parent, parents, legal guardian, or other adult individual with legally recognized custody or control of the minor. 3-31.15 Security. 1. Exterior doors (other than lobby doors) must be locked between the hours of 9:00 p.m. and 6:00 a.m. and shall be equipped with an alarm. City Council Regular Meeting - Page 232 of 268 2. A Video Surveillance System (VSS) must be installed within one year of the effective date of this Ordinance. All VSS shall have not less than one camera dedicated to each register or check-out stand, entrance/exit, lobby and interior hallway(s), swimming pool area, exercise facility, loading dock, and parking lots or areas designated for customer and/or employee parking use. a. All video surveillance records and recordings must be stored in a secure area that is only accessible to the management staff or motel/hotel operator. b. Video surveillance records and recordings must be made available upon request to the City Manager or any other state or local law enforcement agency for a purpose authorized by this chapter or for any other state or local law enforcement purpose. c. Video surveillance records shall be held in confidence by all employees and representatives of the City Manager, except that the City Manager may provide such records and recordings to any other state or local law enforcement agency for a purpose authorized by this Chapter or for any other state or local law enforcement purpose. d. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than 12 inches wide and 12 inches long, composed of letters not less than one inch in height, stating "All Activities Monitored by Video Camera" or "These Premises Are Being Digitally Recorded" or otherwise advising all Persons entering the premises that a video surveillance and camera recording system is in operation at the motel or hotel. e. All camera views of all recorded areas must be continuously recorded 24 hours a day. f. All surveillance recordings must be kept for a minimum of 14 days and be in a format that can be easily accessed for viewing. Video recordings must be archived in a format that ensures authentication of the recording as legitimately captured video and guarantees that no alteration of the recorded image has taken place. 3-31.16 Soliciting and/or Loitering. Soliciting and/or loitering of any kind is not allowed anywhere on the property. “No Loitering” signs must be posted within all common areas including but not limited to lobby and interior hallway(s), swimming pool area, loading dock, and parking lots or areas designated for customer and/or employee parking use. It is unlawful for any person to refuse or fail to leave the property of a motel or hotel when requested to do so by the owner, the owner's agent or by a City representative or peace officer when acting at the request of the owner or the owner's agent. This section shall apply to all areas of the hotel or motel property whether or not such areas are open to the general public. 3-31.17 Violations; Penalties. Any person, including any motel or hotel operator, who violates any provision of this section shall be guilty of a misdemeanor. Each offense shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by imprisonment in the county jail for not more than six (6) months, or both. Each day during any portion of which any violation City Council Regular Meeting - Page 233 of 268 of any provision of this section is committed, continued or permitted, shall constitute a separate offense. 3-31.18 Nonexclusive Remedy. This section is not the exclusive remedy available to the City for regulating motels and hotels and shall be in addition to other regulatory codes, statutes and ordinances enacted by the City, the state, or any other governmental entity, or agency having jurisdiction. Section 2. CEQA Findings. The City Council hereby finds and determines that this Ordinance is not subject to the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines. Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. Section 4. Effective Date. The City Clerk shall certify to the passage of this Ordinance and shall cause this ordinance to be published and/or posted as required by law and said Ordinance shall become effective 30 days after its passage. PASSED, APPROVED AND ADOPTED this ____ day of March 2018. ________________________________ Jose Luis Solache, Mayor ATTEST: _______________________________ Maria Quinonez, City Clerk APPROVED AS TO FORM APPROVED AS TO CONTENT _______________________________ ________________________________ Noel Tapia, City Attorney Jose Ometeotl, City Manager City Council Regular Meeting - Page 234 of 268 Agenda Item # 17. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: John Downs, Finance Director SUBJECT: FY 2019-21 BUDGET PROCESS CALENDAR Recommendation: Staff recommends that the City Council receive and file this report. Background: Every year as the City prepares to develop its annual budget, a budget calendar is created. The calendar is used for managing the process of developing the City's Biennial Operation and Capital budgets. The calendar outlines processes and tasks that need to be completed in order for the budgets to be completed and adopted before the beginning of a new fiscal year. Discussion and Analysis: The City’s budget process is outlined in detail via a Budget Process Calendar prepared by the Finance Department. The budget process calendar includes, but is not limited to, monthly tasks that the Finance staff and departments undergo to stay on course with the development of the two-year budget for the upcoming and following fiscal year. It is the Finance Department’s goal to adhere to the calendar in place in order to align with labor negotiations, Council priorities, subcommittee meeting recommendations, and other key occurrences that have an impact on the City’s overall operating budget. Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City. Coordinated With: City Manager’s Office City Attorney’s Office City Council Regular Meeting - Page 235 of 268 ATTACHMENTS: Description FY 2019-21 Budget Calendar City Council Regular Meeting - Page 236 of 268 CITY OF LYNWOODFY 2019-21 BUDGET PROCESS CALENDARFebruaryFinance Staff to Meet with City Manager (FY 19 Budget Targets and Policies) 2/27/2019FY 2019-21 Budget Memo to Department Heads 2/27/2019Finance to Send FY 2019-21 Budget Forms to Departments for Completion 2/28/2019FY 2019-21 Budget Kick-Off Meeting2/28/2019MarchFY 2019-21 Budget Forms Prepared by Finance Staff MarchFinance Staff to Meet with Public Works to Discuss Preparation of 5 Year CIP Plan MarchBegin Budget Subcommittee MeetingsMarchCity Manager to Meet with Council for Budget Input and Council Priorities 3/4/2019FY 2018-19 Mid-Year Budget Review3/5/2019Proposed Master Fee Schedule Changes Due3/21/2019Proposed Personnel Changes to be Submitted to Finance and Human Resources 3/25/2019AprilDepartments to Submit FY 2019-21 Proposed Budgets (Revenues and Expenditures). Budget Forms L , M and Detailed Expenditure Worksheets Due4/8/2019Departments to Submit FY 20 Contractual, Consulting, Legal and Temporary Agency Services (Form G) and Equipment Requests, Vehicle Requests, & Repairs Maintenance Needs (Form H) 4/8/2019Departments to Submit FY 20 Mission Statement (Form A), Organization Chart (Form B), Goals (Form C), and Performance Measures (Form E)4/18/2019Finalize Revenue Projections (FY 2019 Year-End and FY 2020 & FY 2021 Projected) 4/25/2019City Manager Hearings with Departments4/29/19 thru 5/7/19MayFinance Staff to Meet with City Manager for FY 2019-21 Preliminary Budget Decisions Week of 5/6/20195 Year CIP Plan Due5/6/2019City Manager FY 2019-21 Proposed Budget Due 5/16/2019JuneFY 2019-21 Budget Workshop (Special Meeting) 6/4/2019FY 2019-21 Budget Hearing - Adoption or Continue to July 2, 2019 6/18/2019Departments to Submit FY 2019 Accomplishments (Form D) 6/27/2019AugustBegin Labor NegotiationsAugustSee Form DescriptionsCity Council Regular Meeting - Page 237 of 268 CITY OF LYNWOODFY 2019-21 BUDGET PROCESS CALENDARForm DescriptionsA - Statement of Purpose and Mission StatementB - Organizational ChartC - Goals & ObjectivesD - List of AccomplishmentsE - Performance Measures G - Contractual, Consulting, Legal and Temporary Agency ServicesH - Equipment Requests, Vehicle Requests, & Repairs Maintenance Needs L - Proposed Expenditures and Year-End Expenditure EstimatesM - Proposed Revenues and Year-End Revenue EstimatesCity Council Regular Meeting - Page 238 of 268 Agenda Item # 18. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: John Downs, Finance Director SUBJECT: REQUEST TO ADOPT FISCAL AND BUDGET POLICIES Recommendation: Staff respectfully recommends that the City Council adopt the attached resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADOPTING FISCAL AND BUDGET POLICIES”. Background: The City of Lynwood has a responsibility to its citizens to carefully account for public funds, to manage municipal finances wisely, and to plan for the provision of services desired by the public. Sound financial policies are necessary to carry out that responsibility. Discussion and Analysis: The purpose of this item is to have the Lynwood City Council adopt the attached resolution approving formal Fiscal and Budget Policies. This Statement of Financial Policy provides a summary of significant financial and budgetary policies required by state law, City ordinances, accounting principles generally accepted in the United States, and administrative practices. This policy is designed to: 1) provide conceptual standards for financial decision-making, 2) enhance consistency in financial decisions, and 3) establish parameters for administration to use in directing the day-to-day financial affairs of the City. The scope of these policies includes budgeting, financial reporting, auditing, internal controls, asset management, capital improvement program, debt management and financial performance targets. Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City. City Council Regular Meeting - Page 239 of 268 Coordinated With: City Manager’s Office City Attorney’s Office ATTACHMENTS: Description BUDGET POLICY A RESOLUTION - ADOPTION OF FISCAL AND BUDGET POLICIES City Council Regular Meeting - Page 240 of 268 ________________________________________________________________ Purpose and Scope: The City of Lynwood has a responsibility to its citizens to carefully account for public funds, to manage municipal finances wisely, and to plan for the provision of services desired by the public. Sound financial policies are necessary to carry out that responsibility. This Statement of Financial Policy provides a summary of significant financial and budgetary policies required by state law, City ordinances, accounting principles generally accepted in the United States, and administrative practices. This policy is designed to: 1) provide conceptual standards for financial decision- making, 2) enhance consistency in financial decisions, and 3) establish parameters for administration to use in directing the day-to-day financial affairs of the City. The scope of these policies includes budgeting, financial reporting, auditing, internal controls, asset management, capital improvement program, debt management and financial performance targets. 1. General Financial Goals a. To provide a financial base sufficient to sustain municipal services to maintain the social wellbeing and physical conditions of the City. b. To be able to withstand local and regional economic trauma, to adjust to changes in the service requirements, and to respond to other changes as they affect the community. c. To maintain an excellent credit rating in the financial community and assure taxpayers that Lynwood city government is maintained in sound fiscal condition. 2. General Budgeting Policies The City of Lynwood Budget Policy is to establish procedures and guidelines for the preparation of a biennial budget and to provide a policy that serves as the City’s financial operating plan to establish its goals, CITY OF LYNWOOD FISCAL AND BUDGET POLICIES City Council Regular Meeting - Page 241 of 268 budget priorities, and desired service levels for the fiscal years, as well as identifies the fiscal resources (revenues) necessary to achieve them. Operating Budget Policies a. The base operating budget is the City’s comprehensive two-year financial plan which provides for the desired level of city services as defined by the City’s priorities. b. The goals of the Budgeting by Priorities process are:  Align the budget with citizen priorities  Measure progress towards priorities  Get the best value for each tax dollar  Foster continuous learning in the City  Build regional cooperation c. “One-time” expenses require specific authority to be carried forward into subsequent budgets. d. Revenues and expenditures for the General Fund and all operating funds shall be projected for the ensuing biennium. e. Biennial operating budgets should provide for design, construction, maintenance and replacement of the City’s capital, plant, and equipment consistent with the Capital Improvement Plan (CIP). f. The City will maintain all its assets at a level such that it protects the City’s capital investment and minimizes future maintenance and replacement costs. g. The City will develop an equipment replacement and maintenance needs analysis for the life cycle of the equipment and will update this projection every two years consistent with budget development. h. All general government current operating expenditures will be paid from current revenues and cash carried over from the prior biennium. i. Reports on revenues and expenditures will be prepared quarterly and reviewed quarterly by the City Council during the year. j. The City will avoid budgetary and accounting procedures which balance the current budget at the expense of future budgets. City Council Regular Meeting - Page 242 of 268 k. The City of Lynwood defines a balanced budget as current biennium revenues (including fund balances) are equal to or greater than current biennium budgeted expenditures. l. The City will attempt to utilize beginning balances and other one-time revenues only for one-time/non-recurring expenditures. m. All supplemental appropriations for programs (appropriations requested after the original budget is adopted) will be considered as a result of the availability of new revenues (such as unanticipated grants). n. All supplemental appropriations will conform to the “Budgeting by Priorities” process. 3. Revenue Policies a. The City will strive to maintain as diversified and stable a revenue system as permitted by state law to shelter it from short-run fluctuations in any on revenue source. The revenue mix should combine elastic and inelastic revenue sources to minimize the effect of an economic downturn. b. Because revenues, especially those of the General Fund, are sensitive to both local and regional economic activities, revenue estimates provided to the City Council shall be conservative. c. The City will estimate its biennial revenues by an objective, analytical process using best practices as defined by the Government Finance Officers Association (GFOA). d. The City will establish all user charges at a level related to the cost of providing the service and within policy parameters established by the City Council. e. Annually, the City will review user fees to adjust for the effects of inflation and other factors as appropriate. The City will set fees for user activities, such as recreational services, at a level to support the direct and indirect costs of the activity in accordance with cost recovery policies adopted by Council. City Council Regular Meeting - Page 243 of 268 f. The City will set fees and user charges for each enterprise fund, such as Water/Sewer and Refuse, at a level that fully supports the total direct and indirect cost of the activity including the cost of annual depreciation of capital assets. 4. Expenditure Policies a. The City budget will provide for a sustainable level of service as defined in the context of the Budgeting by Priorities process. b. The City’s operating budget will limit the use of one-time revenues to support ongoing expenditures. c. The City will maintain expenditure categories according to state statute and administrative regulation. Capital expenditures shall meet the requirements of generally accepted accounting principles (GAAP). d. The City will structure service levels in the context of financial sustainability. e. The City’s cost allocation plan will be reviewed and updated every three years and incorporated into the City budget. The cost allocation plan will be the basis for distribution of general government costs to other funds or capital projects (also known as indirect costs). 5. Capital Investment Budget Policies a. The City will make capital improvements in accordance with an adopted capital improvement program. b. The Capital Improvement Program and the base operating budget will be reviewed at the same time to ensure that the City’s capital and operating needs are balanced with each other and that the Capital Improvement Program is aligned with the City’s other long-range plans. c. The City will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to Council for approval. The City will use intergovernmental assistance and other outside resources whenever possible. d. The City will determine the least costly financing method for all new projects. City Council Regular Meeting - Page 244 of 268 e. The City will maintain General Operating Reserves at a level equal to at least 10% of the total General Fund budgeted revenue. 6. Short-Term Debt Policies a. Short-term debt is defined as a period of three years or less. b. The City may use short-term debt to cover temporary cash flow shortages, which may be caused by a delay in receipting tax revenues or issuing long-term debt. The City will not use short-term debt for current operations. c. The City may issue interfund loans rather than outside debt instruments to meet short-term cash flow needs. Interfund loans will be permitted only if an analysis of the affected fund indicates excess funds are available and the use of these funds will not impact the fund’s current operations. 7. Long-Term Debt Policies a. Long Term debt is that debt which exceeds three years. b. The City will utilize long-term borrowing for capital improvements that cannot reasonably be financed on a pay-as-you-go basis from anticipated cash flows. c. Acceptable uses of bond proceeds are items which can be capitalized and depreciated. Refunding bond issues designed to restructure currently outstanding debt is also an acceptable use of bond proceeds. d. The City will determine whether self-supporting bonds (such as special assessment improvement district bonds) are in the City’s best interest when planning to incur debt to finance capital improvements. e. The City will not use long-term debt for current operations. f. The City will maintain good communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus including proactive compliance with disclosure to the secondary market. City Council Regular Meeting - Page 245 of 268 g. General Obligation Bond Policy 1. Every project proposed for financing through general obligation debt shall be accompanied by a full analysis of the future operating and maintenance costs associated with the project. 2. Bonds cannot be issued for a longer maturity schedule than a conservative estimate of the useful life of the asset to be financed. h. Limited Tax General Obligation Bond Policies 1. As a precondition to the issuance of limited tax general obligation bonds, alternative methods of financing should also be examined. 2. Before general obligation bond propositions are placed before the voters, the capital project under consideration should have been included in the Capital Improvement Program. The source of funds should describe the intended use of bond financing. 3. Limited tax general obligation bonds should only be issued under certain conditions:  A project requires monies not available from alternative sources;  Matching fund monies are available which may be lost if not applied for in a timely manner; or  Catastrophic conditions. 8. Reserve Fund Policies a. The City will maintain General Operating Reserves at a level equal to at least 10% of the total General Fund budgeted revenue. These reserves shall be created and maintained to: 1. Provide sufficient cash flow to meet daily financial needs. 2. Sustain City services in the event of a catastrophic event such as a natural/manmade disaster (e.g. earthquake, windstorm, flood, terrorist attack) or a major downturn in the economy. In general, the City shall endeavor to support ongoing operations with ongoing revenues, but may use reserves on a one-time basis to support City services pending the development of a longer term financial solution. However, in no event shall reserves be used longer than one biennium to support City operations. If reserves are used, the City will City Council Regular Meeting - Page 246 of 268 begin to replenish these reserves at the end of the biennium if a surplus exists, but no later than the biennium following their use. b. Biennium surplus balances in the General Fund may be used to fund one-time operations and capital expenditures, dedicated to the Capital Improvement Program or placed in an economic contingency account if: 1. There are surplus balances remaining after all current expenditure obligations and reserve requirements are met. 2. The City has made a determination that revenues for the ensuing biennium are sufficient to support budgeted General Fund operations. c. A surplus is defined as the difference between the actual beginning fund balance and the budgeted beginning fund balance. It consists of under- expenditures and excess revenues over and above the amounts included in the following biennial budget. 9. Special Revenue Policies a. The City will establish and maintain Special Revenue Funds which will be used to account for the proceeds of specific revenue sources to finance specified activities which are required by statute, ordinance or resolution. b. Special Revenue Funds having biennial operating budgets will be reviewed by the City during the budget process. 10. Accounting, Auditing, and Financial Reporting Policies a. The City will establish and maintain a high standard of internal controls and accounting practices. The City accounts for revenues and expenditures on a modified accrual basis. b. The accounting system will maintain records on a basis consistent with accepted standards for local government accounting, Accounting, and Reporting systems. c. Regular quarterly and annual financial reports will present a summary of financial activity by major types of funds. City Council Regular Meeting - Page 247 of 268 d. The annual financial report shall conform to Generally Accepted Accounting Principles (GAAP) and be in the form of a Comprehensive Annual Financial Report as described by the GFOA. e. A fixed asset system will be maintained to identify all City assets, their location, and their condition. f. The City will ensure that City records are audited annually and which will result in the issuance of a financial opinion. The results of such audit are to be available to the public via the City’s website. 11. Budget Calendar a. In order to facilitate and implement the budget process, the City Manager will propose a biennial budget calendar at the second regular Council meeting in February in every odd year. b. The calendar will be comprehensive in nature and generally provide for a process that resembles the Best Practices as published by the GFOA. City Council Regular Meeting - Page 248 of 268 RESOLUTION NO._____________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADOPTING FISCAL AND BUDGET POLICIES WHEREAS, the City of Lynwood has a responsibility to its citizens to carefully account for public funds, to manage municipal finances wisely, and to plan for the provision of services desired by the public; and WHEREAS, sound financial policies are necessary to carry out that responsibility; and WHEREAS, this Statement of Financial Policy provides a summary of significant financial and budgetary policies required by state law, City ordinances, accounting principles generally accepted in the United States, and administrative practices; and WHEREAS, this policy is designed to: 1) provide conceptual standards for financial decision-making, 2) enhance consistency in financial decisions, and 3) establish parameters for administration to use in directing the day-to-day financial affairs of the City; and WHEREAS, the scope of these policies includes budgeting, financial reporting, auditing, internal controls, asset management, capital improvement program, debt management and financial performance targets. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: Section 1. That the City Council approves the attached Fiscal and Budget Policies and directs staff to implement said policies. Section 2. This resolution shall become effective immediately upon its adoption. PASSED, APPROVED AND ADOPTED this 5th day of March, 2019. __________________________ Jose Luis Solache Mayor City Council Regular Meeting - Page 249 of 268 ATTEST: _________________________ __________________________ Maria Quinonez Jose E. Ometeotl City Clerk City Manager APPROVED AS TO FORM: APPROVED AS TO CONTENT: ____________________________ __________________________ Noel Tapia John Downs City Attorney Finance Director City Council Regular Meeting - Page 250 of 268 Agenda Item # 19. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: John Downs, Finance Director SUBJECT: COST ALLOCATION PLAN USE POLICY Recommendation: Staff respectfully recommends that the City Council adopt the attached resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADOPTING A COST ALLOCATION PLAN USE POLICY”. Background: Establishing a formal Cost Allocation Plan Use Policy enables the City to identify, accumulate and allocate, or develop billing rates based on allowable cost of services provided. Discussion and Analysis: The purpose of this item is to have the Lynwood City Council adopt the attached resolution approving a formal Cost Allocation Plan Use Policy. The policy establishes guidelines that summarize the procedures for using cost allocation plans to appropriately allocate central service department costs to operating departments. It is the policy of the City of Lynwood to ensure the recovery of overhead costs from its funds. Therefore, departments that provide services internally to operating departments which conduct day-to-day operations necessary to serve the community, costs are to be appropriately allocated. Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City. Coordinated With: City Council Regular Meeting - Page 251 of 268 City Manager’s Office City Attorney’s Office ATTACHMENTS: Description Cost Allocation Use Policy A RESOLUTION - ADOPTION OF COST ALLOCATION USE POLICY City Council Regular Meeting - Page 252 of 268 ______________________________________________________________________ Purpose: The City of Lynwood Cost Allocation Plan Use Policy is to establish guidelines that summarize the procedures for using cost allocation plans to appropriately allocate central service department costs to operating departments. General: The Office of Management and Budget Super Circular (the OMB Super Circular) and CFR Part 200 (Cost Principles) establishes the principles for determining central overhead cost incurred while carrying out activities associated with Federal awards, cost reimbursement contract and some other intergovernmental agreements (as required). Policy: It is the policy of the City of Lynwood to ensure the recovery of overhead costs from its funds. Therefore, departments that provide services internally to operating departments which conduct day-to-day operations necessary to serve the community, costs are to be appropriately allocated. The City’s departments that serve in a central service function are:  City Clerk – City Clerk  City Council – City Council  City Manager – Administration  City Treasurer – City Treasurer  Finance & Accounting – Accounting  Finance & Administration – Administrative Services  Finance & Administration – City Attorney  Finance & Administration – County Admin Fee  Finance & Administration – Purchasing  Human Resources – Employee Personnel Services  Human Resources – General Services  Technology Services Responsibilities It is the responsibility of the Finance Director to request and collect workload data from the central service departments. The workload data along with cost data will be used to CITY OF LYNWOOD COST ALLOCATION PLAN USE POLICY City Council Regular Meeting - Page 253 of 268 estimate the levels of service provided by the central departments to other departments and ultimately serve as the basis for allocating costs. Finance will identify the portions of the central service costs that have not been reimbursed through other means such as grants, user fees revenues, transfers from other departments or internal service funds, to avoid double counting. Review and Update The City’s Cost Allocation Plan Use Policy will be reviewed and updated every three to five years by the Finance Director and the City Manager. The City will contract with a third party to prepare an updated comprehensive cost allocation plan. The cost allocation plan will be presented to Council for review and approval. City Council Regular Meeting - Page 254 of 268 RESOLUTION NO._____________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADOPTING A COST ALLOCATION PLAN USE POLICY WHEREAS, establishing a formal Cost Allocation Plan Use Policy enables the City to identify, accumulate and allocate, or develop billing rates based on allowable cost of services provided; and WHEREAS, the purpose of this item is to have the Lynwood City Council adopt a formal Cost Allocation Plan Use Policy; and WHEREAS, the policy establishes guidelines that summarize the procedures for using cost allocation plans to appropriately allocate central service department costs to operating departments; and WHEREAS, it is the policy of the City of Lynwood to ensure the recovery of overhead costs from its funds. Therefore, departments that provide services internally to operating departments which conduct day-to-day operations necessary to serve the community, costs are to be appropriately allocated. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: Section 1. That the City Council approves the attached Cost Allocation Plan Use Policy and directs staff to implement said policy. Section 2. This resolution shall become effective immediately upon its adoption. PASSED, APPROVED AND ADOPTED this 5th day of March, 2019. __________________________ Jose Luis Solache Mayor ATTEST: _________________________ __________________________ Maria Quinonez Jose E. Ometeotl City Clerk City Manager City Council Regular Meeting - Page 255 of 268 APPROVED AS TO FORM: APPROVED AS TO CONTENT: ____________________________ __________________________ Noel Tapia John Downs City Attorney Finance Director City Council Regular Meeting - Page 256 of 268 Agenda Item # 20. AGENDA STAFF REPORT DATE: March 5, 2019 TO: Honorable Mayor and Members of the City Council APPROVED BY: Jose E. Ometeotl, City Manager PREPARED BY: John Downs, Finance Director SUBJECT: FY 2018-19 MID-YEAR FINANCIAL REVIEW Recommendation: Staff recommends that the City Council receive the file this staff report on the City’s Mid-Year Financial Review and adopt the attached resolutions entitled: · A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD RECEIVING AND FILING THE FY 2018-19 MID-YEAR FINANCIAL REVIEW REPORTS, APPROVING THE FY 2018-19 MID-YEAR BUDGET ADJUSTMENTS TO AMEND THE FY 2018-19 ADOPTED BUDGET HERETO ATTACHED AS SCHEDULE A · A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING THE CIP BUDGET APPROPRIATION FOR FY 2018-19, TO INCREASE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS HERETO ATTACHED AS SCHEDULE B Background: On June 26, 2018, the City Council adopted the City’s Fiscal Year 2018-19 (FY 2018-19) Annual Operating Budget. The FY 2018-19 Adopted Budget is the City’s financial operating plan that establishes the City’s goals, budget priorities, and desired service levels for the fiscal year, as well as identifies the fiscal resources necessary to achieve them. The adopted budget was based on certain assumptions and meeting expenditure and revenue projections. The Mid-Year Financial Review is presented to Council to provide an updated financial forecast for the current year. The FY 2018-19 Mid-Year Financial Review Report reports on the City’s fiscal performance through mid-year (July through December), comparing all revenues and expenditures incurred during the first two quarters of FY 2018-19 to the same period in FY 2017-18. The Mid-Year Financial Review Report also provides an updated FY 2018-19 Financial Forecast, as well as presents mid-year budget adjustments for Council’s consideration to amend the FY 2018-19 Adopted Budget. As customary, the Mid-Year Financial Review Report primarily focuses on the General Fund since this is the fund that supports traditional municipal services the City provides for residents, such as law enforcement, fire protection, public works services, parks, and recreation. City Council Regular Meeting - Page 257 of 268 Discussion and Analysis: FY 2018-19 Mid-Year Financial Report: The table below shows the City’s revenues and expenditures incurred through the mid-year point of the fiscal year (first two quarters), from July 1 through December 31 in FY 2018-19 and FY 2017-18. TABLE 1 GENERAL FUND REVENUES & EXPENDITURES JULY - DECEMBER FY 2018-19 Adopted Budget FY 2018-19 July - December Actuals FY 2017-18 July - December Actuals FY 2018-19 Mid-Year Dollar Increase (Decrease) FY 2018-19 Mid-Year Percentage Increase (Decrease) Revenues Property Tax $10,374,335 $1,227,806 $1,171,608 $56,198 4.8% Sales Tax 4,398,298 1,635,303 1,589,713 45,590 2.9% Sales Tax Measure PS 4,741,181 1,854,510 1,646,395 208,115 12.6% Utility Users Tax 4,950,000 2,243,361 2,348,216 (104,855)-4.5% Franchise Fees 646,994 66,179 52,884 13,295 25.1% Business License & Other Tax 843,800 299,075 244,383 54,692 22.4% Charges for Current Services 1,802,820 694,310 1,787,713 (1,093,403)-61.2% Fines, Forfeits, & Penalties 1,479,300 1,007,778 653,579 354,199 54.2% Other Revenues 3,706,474 1,091,015 584,356 506,659 86.7% Transfers In 2,945,862 0 0 0 0.0% Total Revenues $35,889,064 $10,119,337 $10,078,847 $40,490 0.4% Expenditures Operational Expenditures $32,842,552 $13,743,321 $13,812,699 ($69,378)-0.5% Transfers Out $1,636,729 0 0 0 0.0% Total Expenditures $34,479,281 $13,743,321 $13,812,699 ($69,378)-0.5% Charges for Current Services include various fees such as Plan Check Fees, Inspection Fees, Facility Rental Fees, Sports Fees, and Advertising Fees. FY 2018-19 Mid-Year Revenue Performance: Overall, revenues for the City are up 0.4% (or $40,490) for the first half of FY 2018-19 compared to FY 2017-18. Outlined below is a summary of the revenue performance for the City’s major revenues. Property Tax – Through the mid-year point in FY 2018-19, the City’s largest revenue, Property Tax, was up 4.8% (or $56,198) from FY 2017-18. The City will receive its last large installment in April 2019, which accounts for approximately 90% of our total property tax. For FY 2018-19, the City budgeted $10,374,335. Per the FY 2018- 19 Property Tax Summary prepared by MuniServices, the City expects to receive $10,692,953, which is a $318,618 increase from the budgeted amount. This is due to an increase in the assessed value. In respect to Secured Property Taxes, the City received its Property Tax installment in December representing 40% of what the State expects to receive for the whole year. Annualizing this amount and calculating at 50% of the fiscal year, the City should receive an additional $289,9842 in revenues. Please note, the City received its Property Tax in Lieu of VLF of $3,818,907 in January. This is payment is not reflected in the December revenues. For FY 2018-19, it is anticipated that the City would receive $7,637,814 in revenue. City Council Regular Meeting - Page 258 of 268 Sales Tax – Sales Tax (including Sales Tax Measure PS) is 15.5% (or $253,705) through the first half of FY 2018-19 from last year. Sales tax is the City’s second largest revenue. The majority of the City’s sales tax revenues are received in March, three months subsequent to the December holiday sales. For FY 2018-19, the City budgeted $9,139,479 for Sales Tax revenues. Of the $9,139,479, $4,741,181 was projected for the Measure PS Use Tax revenue. UUT – UUT revenues are down 4.5% (or $104,855) in FY 2018-19. This is primarily due to a 26.4% (or $151,178) decrease in UUT – Telephone, a 4.9% (or $20,438) increase in UUT-Water, and a 1.6% (or $17,743) increase in UUT- Electric. Franchise Fees – Franchise Fees are 25.1% (or $13,295) from FY 2017-18 due to an increase in franchise fees for cable services (up $12,707). Business License & Permits – Business License & Permits are up 22.4% (or $54,692) from FY 2017-18, specifically business license (up by $19,717), real property report fees (up $15,660), and construction permits (up by $12,582). Charges for Current Services – Charges for Current Services are down 61.2% (or $1,093,403) from FY 2017- 18 due a decrease in Billboard Agreement (down by $1,159,288) for the deposit received in December 2017. Fines, Forfeits, & Penalties – Fines, Forfeits, & Penalties are up 54.2% (or $354,199) due to an increase in Vehicle Code Violations, Street Sweeping Parking Fines, Lawn Parking, Animal License, Code Violations and Miscellaneous Parking Fines. This is due to the City’s Public Safety Division being fully staffed and additional cross training across divisions. Other Revenues – Other Revenues are up 86.7% (or $506,659) from FY 2017-18 primarily due to an increase in Admin Support-Water and Admin Support-Sewer. Fifty percent (50%) of the revenues were recorded in December 2018 oppose to December 2017. However, Damage to City Property and Miscellaneous Revenue is down $45,467 and $196,759 respectively. FY 2018-19 Mid-Year Expenditure Performance: The City expended 0.5% (or $69,378) less than last year through the mid-year point of the FY 2018-19. The decrease in expenditures can be attributed to timing difference in payment and/or processing of invoices such as those related to liability insurance expenses, dues & subscriptions, reduction in consulting services expenses, unbilled legal services and professional engineering related services, etc. However, the Finance Department will continue to monitor spending, address unanticipated needs for the current year, and help ensure that departments are adhering to the approved budget. Capital Improvement Projects: At the end of each fiscal year, there are capital improvement projects (CIPs) within the Public Works department with remaining balances. Staff is requesting that balances from projects that were not completed in the FY 2017- 18, be appropriated and/or adjusted in the current fiscal year. There are a number of projects totaling $1,831,237 that require adjustment to ensure budgetary compliance and to provide additional transfers between funds. During the FY 2018-19 budget process, the appropriation of these CIPs expenditures were included in the estimated fund balances for FY 2017-18. FY 2018-19 Financial Forecast: In addition to reporting on the fiscal condition of the City through the first half of the year, the FY 2018-19 Mid-Year Financial Review Report provides an updated FY 2018-19 Financial Forecast. Throughout the year, fiscal issues arise and budget adjustments may be required that may impact the FY 2018-19 Adopted Budget. When this happens, budget assumptions and year-end projections change. The Mid-Year Financial Review is usually a good time to present an updated FY 2018-19 Financial Forecast, as we become aware of new fiscal issues that arise subsequent to the budget adoption. Refer to Table 2 below for an updated FY 2018-19 Financial Forecast. City Council Regular Meeting - Page 259 of 268 TABLE 2 GENERAL FUND ADJUSTED FY 2018-19 FINANCIAL FORECAST FY 2018-19 Adopted Budget FY 2018-19 Adjusted Budget Revenues Adopted Revenues (including Transfers In)$35,889,064 $35,889,064 Transfers In for Fleet GPS and Car Video 20,000 Transfers In for Solar Led Lighting Systems 150,000 Transfers In for Christmas Tree and Decorations 40,000 Transfers In Annual Candy Cane Lane Christmas Parade and Carnival 90,000 Total Adjusted Revenues $35,889,064 $36,189,064 Expenditures Adopted Expenditures (including Transfers Out)$34,479,281 $34,479,281 1st Quarter Council Approved Budget Adjustments 78,203 2nd Quarter Council Approved Budget Adjustments -514,971 Community Development Operational Budget (Proposed)337,265 Finance & Administration Operational Budget (Proposed)180,000 Public Works Operational Budget (Proposed)195,655 Recreation & Community Services Operational Budget (Proposed)24,400 Information Technology Operational Budget (Proposed)13,000 Total Adjusted Expenditures $34,479,281 $35,822,775 Operating (Deficit)/Surplus $1,409,783 $366,289 Beginning Fund Balance $4,607,159 $4,879,472 Ending Fund Balance $6,016,942 $5,245,761 The second column on Table 2 represents the FY 2018-19 Adjusted Budget taking into account all unanticipated expenditures (salary allocations/adjustments, animal care fair, leadership and development program, parade) and proposed budget adjustments. Based on the second column, the new FY 2018-19 ending fund balance is projected to be $5,245,761. The new reserve level is above the minimum General Fund reserve level of 10% of the current-year adopted operating budget. However, the City Manager may consider mandating a hiring freeze for all non-revenue generating positions through June 30, 2019 as the City must realize this salary savings in order to bolster the General Fund reserve. FY 2018-19 Mid-Year Budget Adjustments: Staff is presenting the following Mid-Year Budget Adjustments for Council’s consideration to amend the FY 2018- 19 Adopted Budget for the General Fund. 1. Community Development Operational Budget ($337,265 – General Fund; $516,415 – All Funds) – An additional appropriation in the amount of $337,265 from General Fund reserves, $48,378 from Community Development Housing A Fund reserves, $119,050 from AB 1484 Housing Asset Fund reserves, and $11,722 from HUD/CDBG Fund reserves) is needed for training, hand-held citation printers, temporary clerical staff, citation processing services, personnel coaching services, business license services, and professional fees related to Infrastructure Engineers totaling $80,000 for the General Fund, $42,132 for the Community Development Housing A Fund, and $119,050 for the AB 1484 Housing Asset fund. 2. Finance & Administration Operational Budget ($180,000 – General Fund; $237,811 – All Funds) – An additional appropriation in the amount of $237,811($180,00 from General Fund reserves and $57,811 from Water Fund reserves) is needed to cover $180,000 in General Fund legal services and temporary staffing services. 3. Public Works Operational Budget ($195,655 – General Fund; $488,825 – All Funds) – An additional appropriation and/or reduction in the amount of $488,825 ($195,655 from General Fund reserves, $4,063 in City Council Regular Meeting - Page 260 of 268 Refuse Fund reserves, $106,119 in Traffic Safety Fund reserves, $100,000 in Lighting Maintenance Fund reserves, $31,988 in Landscape Maintenance Fund reserves, ($4,063) in Beverage Recycling Grant Fund reserves, ($4,063) in Used Oil Recycling Grant Fund reserves, $4,523 in Water Fund reserves, and $54,523 in 2017 Lease Revenue Bond reserves) is needed to cover grant writing services, alarm system maintenance/service, roof assessments, Natatorium shower room repair, interim Public Works Director costs, Procure America contract costs, Infrastructure Engineer professional services pertaining to plan check and city engineering in the amount of $133,400 for the General Fund, and a traffic study conducted by Infrastructure Engineers in the amount of $5,235 for the Traffic Safety Fund. 4. Recreation & Community Services Operational Budget ($24,400 – General Fund; $42,675 – All Funds) – An additional appropriation in the amount of $42,675 ($24,400 from General Fund reserves and $18,275 from 2017 Lease Revenue Bond reserves) is needed to cover special events such as Community Clean- Up, Easter Egg Event, Earth Day, supplies for summer day camp, facility equipment, temporary staffing services, and graffiti deterrent. 5. Information Technology Operational Budget ($13,000 – General Fund; $53,000 – All Funds) – An additional appropriation in the amount of $53,000 ($13,000 from General Fund reserves and $40,000 from 2017 Lease Revenue Bond reserves) is needed to cover mobile camera units, two new city copier and related lease expenses, and printing/copying/maintenance costs. The proposed FY 2018-19 Mid-Year Budget adjustments are listed in Schedule A. Closing: As we are in the midst of the FY 2018-19 budget, it is imperative that City stay above the minimum General Fund reserves levels. Falling below the minimum reserve level raises serious and alarming concerns to the City’s fiscal condition and the City’s ability to contend with unanticipated fiscal challenges that may be on the horizon, as well as the potential adverse impacts to the City’s bond ratings. The City must utilize all tools available to reduce costs and bolster General Fund reserve. We must continue to identify corrective actions to address the City’s fiscal issues so that the City does not end up in a state of fiscal distress. Fiscal Impact: The FY 2018-19 projected General Fund ending fund balance is $5,245,761. The Proposed adjustments total impact to the General Fund Expenditure is $750,320. Coordinated With: City Attorney All Departments ATTACHMENTS: Description Resolution - Mid Year Financial Review Resolution -CIP Appropriation Adjustments FY 19 Proposed Adjustments Schedule A FY 19 Proposed CIP Appropriation Adjustments Schedule B FY 19 Proposed CIP Transfers In/Out Schedule C City Council Regular Meeting - Page 261 of 268 RESOLUTION NO._____________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD RECEIVING AND FILING THE FY 2018-19 MID-YEAR FINANCIAL REVIEW REPORT, AND APPROVING THE FY 2018-19 MID-YEAR BUDGET ADJUSTMENTS TO AMEND THE FY 2018-19 ADOPTED BUDGET HERETO ATTACHED AS SCHEDULE A WHEREAS, the City Council of the City of Lynwood (the “City Council”) adopted the City of Lynwood’s Fiscal Year 2018-19 (FY 19) Operating Budget on June 26, 2018; and WHEREAS, the City’s adopted budget is based on certain assumptions and meeting expenditure and revenue projections; and normally, at the mid-year point of the fiscal year, the Mid-Year Financial Review is presented to provide an updated Financial Forecast for the current-year; and WHEREAS, staff also presents an annual Mid-Year Financial Review to the City Council to report on the City’s fiscal performance through mid-year (July through December), comparing all revenues and expenditures incurred during the first two quarters of FY 19 to the same period in FY 18; and WHEREAS, further, the Finance Department meets with departments quarterly during the fiscal year to monitor spending, assess revenues, and identify unanticipated or critical-need issues that may arise and require budget adjustments to the current-year budget; and WHEREAS, staff has identified several Citywide fiscal issues that were not included in the FY 19 Adopted Budget that will require amendments to avoid disruption of services and ensure proper funding levels; and WHEREAS, as a result, staff is recommending the following proposed budget adjustments, hereto attached as Schedule A, which will amend the FY 19 Adopted Budget; and WHEREAS, if the recommended budget adjustments are approved by Council, the FY 19 projected ending fund balance is $5,245,761, which is above the minimum General Fund reserve level of the current-year adopted operating budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS: Section 1. By adoption of this resolution, the City Council approves the FY 19 Proposed Budget Adjustments hereto attached as Schedule A and hereby amends the FY 19 Adopted Budget. City Council Regular Meeting - Page 262 of 268 Section 2. That the City Council authorizes the City Manager, or his designee, to make the necessary budget adjustments to the City’s financial system to reflect appropriate changes to the FY 19 Adopted Budget. Section 3. This resolution shall go into effect immediately upon its adoption. Section 4. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 5th day of March, 2019. ________________________________ Jose Luis Solache Mayor ATTEST: _______________________________ Maria Quinonez City Clerk APPROVED AS TO FORM: APPROVED AS TO CONTENT: _____________________________ ________________________________ Noel Tapia Jose Ometeotl City Attorney City Manager ________________________________ John Downs Finance Director City Council Regular Meeting - Page 263 of 268 RESOLUTION NO._____________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING THE CIP BUDGET APPROPRIATION FOR FY 2018-19, TO INCREASE THE BUDGET FOR THE APPROVED CONTINUING APPROPRIATIONS AND TRANSFERS IN/OUT HERETO ATTACHED AS SCHEDULE B & C WHEREAS, the City Council of the City of Lynwood (the “City Council”) adopted the City of Lynwood’s Fiscal Year 2018-19 (FY 19) Operating Budget on June 26, 2018; and WHEREAS, at the end of each fiscal year, there are capital improvement projects (CIPs) within the Public Works department with remaining balances; and WHEREAS, staff is requesting that balances from projects that were not completed in the FY 2017-18, be appropriated and/or adjusted in the current fiscal year; and WHEREAS, there are a number of projects totaling $1,831,237 that require adjustment to ensure budgetary compliance and to provide additional transfers between funds; and WHEREAS, during the FY 2018-19 budget process, the appropriation of these CIPs expenditures were included in the estimated fund balances for FY 2017-18; and WHEREAS, as a result, staff is recommending the following proposed CIP appropriation adjustments and transfers in/out, hereto attached as Schedule B & C, which will amend the FY 19 CIP budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS: Section 1. By adoption of this resolution, the City Council approves amending the CIP Appropriation and Transfers In/Out for FY 19, to increase the budget for the approved continuing appropriations. Section 2. That the City Council authorizes the City Manager, or his designee, to make the necessary budget adjustments and transfers in/out to the City’s financial system to reflect appropriate changes to the FY 19 CIP Budget. Section 3. This resolution shall go into effect immediately upon its adoption. Section 4. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 5th day of March, 2019. City Council Regular Meeting - Page 264 of 268 ________________________________ Jose Luis Solache Mayor ATTEST: _______________________________ Maria Quinonez City Clerk APPROVED AS TO FORM: APPROVED AS TO CONTENT: _____________________________ ________________________________ Noel Tapia Jose Ometeotl City Attorney City Manager ________________________________ John Downs Finance Director City Council Regular Meeting - Page 265 of 268 City of Lynwood Schedule A FY 19 Proposed Budget Adjustments # Proposed Adjustment 1 Community Development  Operational Budget $337,265 $48,378 CD Housing A  Community  Development 119,050 AB 1484 Housing  Asset 11,722 HUD/CDBG Subtotal: $337,265 $179,150 2 Finance & Administration  Operational Budget $180,000 $57,811 Water  Finance &  Administration Subtotal: $180,000 $57,811 3 Public Works Operational  Budget $195,655 $4,063 Refuse Public Works 106,199 Traffic Safety 100,000 Lighting 31,988 Landscape (4,063) Beverage  Recycling Grant (4,063) Used Oil  Recycling Grant 4,523 Water 54,523 2017 Lease  Revenue Bond Subtotal: $195,655 $293,170 4 Recreation & Community  Services Operational Budget $24,400 $18,275 2017 Lease  Revenue Bond Recreation  Subtotal: $24,400 $18,275 5 Information Technology $13,000 $40,000 2017 Lease  Revenue Bond Information  Technology Subtotal: $13,000 $40,000 Total FY 19 Proposed Budget  Adjustments: $750,320  $588,406  Department/Divisions Proposed  Other Funds Adjustment Amount Proposed  General Fund Adjustment Amount EXPENDITURES City Council Regular Meeting - Page 266 of 268 City of Lynwood Schedule B FY 19 Proposed CIP Appropriation Adjustments Fund Project Project Name Appropriation Adjustments Reason 4011 67-007 John D Ham Park Comm Center Project 5,000 Cover outstanding construction management payments. 4011 67-009 Well #19 - Rehab 6,178 True Up. Carryover balance from FY18. 4011 67-010 Water Well No. 11 5,336 True Up. Carryover balance from FY18. 4011 67-011 New Annex & City Hall Renovation Project 13,969 True Up. Carryover balance from FY18. 4011 67-012 Birch, Fir, Lugo , Plat 5,070 True Up. Carryover balance from FY18. 4011 67-013 Beechwood, Louise, Nevada 3,384 True Up. Carryover balance from FY18. 4011 67-601 Reservoir & Booster Station Study (4,705) True Up. Carryover balance from FY18. 4011 67-880 Underground Storage Tanks 4,685 True Up. Carryover balance from FY18. 4011 67-894 Water Well No. 22 13,090 True Up. Carryover balance from FY18. 4011 67-901 Emergency Generators FY2011 9,004 True Up. Carryover balance from FY18. 4011 67-907 Duncan Avenue Design-Imperial- Elmwood 2012 4,304 True Up. Carryover balance from FY18. 4011 67-911 Wright Rd. Design (Cortland- Fernwood) 2012 792 True Up. Carryover balance from FY18. 4011 67-912 Louise Ave (Wright Rd-MLK Blvd) FY2012 2,582 True Up. Carryover balance from FY18. 4011 67-992 Well 11 (GAC Treatment System FY17) 15,866 True Up. Carryover balance from FY18. 4011 67-997 Long Beach Blvd.- Phase II 1,800,000 Cover change orders, construction and project management costs, and labor compliance services. 4011 68-017 Street Improv FY2015 (Measure R Bonds) (1,130) True Up. Carryover balance from FY18. 4011 68-033 Facility Roof Repair (184,288) True Up. Carryover balance from FY18. 4011 68-035 Imperial Hwy/MLK HSIP 2,406 True Up. Carryover balance from FY18. 4011 68-038 Traffic Signal Imp- Louise & Long Beach 1,316 True Up. Carryover balance from FY18. 4011 68-040 Emergency Reservoir/Booster Valve Replacement (11,361) True Up. Carryover balance from FY18. 4011 68-041 Sewer Line Improvement 4,108 True Up. Carryover balance from FY18. 4011 68-042 Water Line Improvement 95,000 Cover costs for waterline improvements related to the Louise Street Improvement Project. Water improvements higher than the original Engineer's Estimate. 4011 68-044 Peach St 4,155 True Up. Carryover balance from FY18. 4011 68-045 Sample Stations 11,476 True Up. Carryover balance from FY18. 4011 68-046 Urban Greening 25,000 Cover costs for additional work required by Caltrans related to NEPA. Total 1,831,237$ City Council Regular Meeting - Page 267 of 268 City of Lynwood Schedule C FY 19 Proposed CIP Transfers In/Out Account Description Amounts 2751.95.991.68020 Trans out - Capital Projects Fund- Water Well No. 22 Project 4011.67.894 13,090 2350.95.991.68020 Trans out - Capital Projects Fund- Birch, Fir, Lugo , Platt Project 4011.67.054 5,070 2350.95.991.68020 Trans out - Capital Projects Fund- Duncan Avenue Design-Imperial-Elmwood 2012 Project 4011.67.907 4,304 2350.95.991.68020 Trans out - Capital Projects Fund- Street Improv FY2015 (Measure R Bonds) Project 4011.68.017 (1,130) 2351.95.991.68020 Trans out - Capital Projects Fund- Long Beach Blvd.- Phase II- Project 4011.67.997 (200,000) 2351.95.991.68020 Trans out - Capital Projects Fund- Long Beach Blvd.- Phase II -Project 4011.67.997 2,000,000 2351.95.991.68020 Trans out - Capital Projects Fund- Urban Greening- Project 4011.68.046 25,000 2351.95.991.68020 Trans out - Capital Projects Fund- Louise Ave (Wright Rd-MLK Blvd) FY2012- Project 4011.67.912 2,582 2351.95.991.68020 Trans out - Capital Projects Fund- Wright Rd. Design (Cortland-Fernwood) 2012 - Project 4011.67.911 792 2353.95.991.68020 Trans out - Capital Projects Fund- Imperial Hwy/MLK HSIP- Project 4011.68.035 2,406 2941.95.991.68020 Trans out - Capital Projects Fund-Peach St - Project 4011.68.044 4,155 6051.95.991.68020 Trans out - Capital Projects Fund- Well Project 19 -Rahab - Project 4011.67.009 6,178 6051.95.991.68020 Trans out - Capital Projects Fund- Water Well No. 11 Project 4011.67.010 5,336 6051.95.991.68020 Trans out - Capital Projects Fund- Beechwood, Louise, Nevada -Project 4011.67.055 2,567 6051.95.991.68020 Trans out - Capital Projects Fund- Public Relation Admin -Project 4011.67.601 (4,705) 6051.95.991.68020 Trans out - Capital Projects Fund- Underground Storage Tanks - Project 4011.67.880 4,685 6051.95.991.68020 Trans out - Capital Projects Fund -Emergency Generators FY2011 Project 4011.67.901 9,004 6302.95.991.68020 Trans out - Capital Projects Fund- Well 11 (GAC Treatment System FY17) Project4011.67.992 15,866 6302.95.991.68020 Trans out - Capital Projects Fund- NEW. Emergency Reservoir/Booster Valve Replacement -Project 4011.68 (11,361) 6302.95.991.68020 Trans out - Capital Projects Fund-Sewer Line Improvement- Project 4011.68.041 4,108 6302.95.991.68020 Trans out - Capital Projects Fund- Water Line Improvement Project 4011.68.042 95,000 6302.95.991.68020 Trans out - Capital Projects Fund- Sample Stations- Project 4011.68.045 11,476 9053.95.991.68020 Trans out - Capital Projects Fund- John D. Ham Park Community Ctr.- Project 4011.67.007 5,000 9053.95.991.68020 Trans out - Capital Projects Fund -New Annex & City Hall Renovation - Project 4011.67.011 13,969 9053.95.991.68020 Trans out - Capital Projects Fund- Traffic Signal Imp- Louise & Long Beach- Project 4011.68.038 1,316 9054.95.991.68020 Trans out - Capital Projects Fund- Beechwood, Louise, Nevada- Project 4011.67.055 817 9054.95.991.68020 Trans out - Capital Projects Fund- Facility Roof Repair- Project 4011.68.033 (184,288) 1,831,237$ 4011.95. Trans In - To Fund Various Capital Projects 1,831,237$ City Council Regular Meeting - Page 268 of 268