Table of Contents

Agenda 2Resolution Awarding Contract for the Water Meter Installationfor Kerman Garden Apartments and Helsem Terrace to ValleyExcavation, Inc.

Staff Report - KGA & HT Water Meter Contract 3Budget Workshop Fiscal Year 2018/2019

Staff Report 8

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CITY CLERKS DEPARTMENT 850 S. Madera Avenue Marci Reyes, City Clerk Kerman, CA 93630 Mayor – Rhonda Armstrong Mayor Pro Tem – Gary Yep Council Members Michele Arvance Phone: (559) 846-9380 Raj Dhaliwal Fax: (559) 846-6199 Espi Sandoval mreyes@cityofkerman.org

NOTICE AND CALL OF SPECIAL MEETING OF THE KERMAN CITY COUNCIL

NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council of the City of Kerman is hereby called. Date and Time: May 30, 2018

6:30 p.m.

Location: City of Kerman Council Chambers 850 S. Madera Avenue Kerman, California 93631

AGENDA The sole business to be conducted is as follows: 1. Call to Order

2. Roll Call

3. Resolution Awarding Contract for the Water Meter Installation for Kerman Garden Apartments and Helsem Terrace to Valley Excavation, Inc.

4. Budget Workshop Fiscal Year 2018/2019. Members of the public shall have an opportunity to be heard on these matters.

This notice is given pursuant to CA Government Code Section 54956 and shall be posted at least 24 hours prior to the special meeting in a location that is freely accessible to members of the public and on the City’s website: www.cityofkerman.net.

Date: May 25, 2018 __________________________ Marci Reyes

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City of Kerman “Where Community Comes First”

MAYOR MAYOR PRO-TEM Rhonda Armstrong Gary Yep COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER Michele Arvance Raj Dhaliwal Espi Sandoval

DEPARTMENT: PLANNING AND DEVELOPMENT STAFF REPORT

CITY COUNCIL MEETING COUNCIL MEETING DATE: MAY 30, 2018

To: Mayor and City Council From: Jerry Jones, City Engineer Subject: Resolution Awarding of Contract for the Water Meter Installation for Kerman Garden Apartments and

Helsem Terrace to Valley Excavation, Inc. RECOMMENDATION Council by motion adopt resolution awarding contract for the Water Meter Installation for Kerman Garden Apartments and Helsem Terrace to Valley Excavation, Inc. in the amount of $71,770.00 and authorize the City Manager to sign the agreement. EXECUTIVE SUMMARY As a requirement of the State, the City must meter all water use by 2025. The City has previously installed water meters on approximately 3,000 residential and commerical water service connections. This project will install water meters on the services for the Kerman Garden Apartments and Helsem Terrace, which are the remaining un-metered multi-family residential properties within the City. A Vicinity Map for the properties is included as Attachment B. The Project was advertised and bids were received from one contractor on Wednesday May 23, 2018. The lowest responsive and responsible bidder was Valley Excavation, Inc. in the amount of $71,770.00. OUTSTANDING ISSUES None. DISCUSSION The City advertised for bids for the Project and bids were received from one contractor on Wednesday, May 23, 2018, and the results are as follows:

Contractor Base Bid Valley Excavation Inc. $71,770.00 Engineers Estimate $55,000.00

The low bid received from Valley Excavation, Inc. is approximately $17,000 above the estimated project cost. The higher costs received are indicative of the recent increase in demand for underground utilities by the land development sector and increases in materials prices.

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City Council Staff Report Page 2 of 5 Award of Contract for the Water Meter Installation for Kerman Garden Apartments and Helsem Terrace Staff has reviewed the bid submitted by Valley Excavation Inc., along with information regarding their previous work experience. Based on review, Staff has determined the bid to be responsive and Valley Excavation Inc. to be a responsible contractor.

FISCAL IMPACT The total estimated project cost is $80,000, including design and construction management. The project will be funded with Water Fund Reserves.

PUBLIC HEARING Not Required. Attachments:

A. Resolution B. Vicinity Map

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City Council Staff Report Page 3 of 5 Award of Contract for the Water Meter Installation for Kerman Garden Apartments and Helsem Terrace

Attachment ‘A’

RESOLUTION NO. 18-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KERMAN AWARDING CONTRACT FOR THE WATER METER INSTALLATION FOR

KERMAN GARDEN APARTMENTS AND HELSEM TERRACE TO VALLEY EXCAVATION, INC.

WHEREAS, the Invitation to Bid for the Water Meter Installation for Kerman Garden Apartments and Helsem

Terrace was sent electronically and mailed to all construction trade journals specified for the City by the California Uniform Construction Cost Accounting Commission in accordance with the City’s Formal Contract Procedures and California Public Contract Code Section 22037 and; WHEREAS, the project consists of the installation of City-furnished water meters at Kerman Garden Apartments and Helsem Terrace, within the City of Kerman; and WHEREAS, the following bids for the project were publicly opened and read aloud at the City Public Works Department on May 23, 2018 at 2:30 p.m.:

Contractor Base Bid Valley Excavation Inc. $71,770.00

WHEREAS, the City Engineer’s Estimate for the Base Bid was $55,000.00.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KERMAN RESOLVES AS FOLLOWS: 1. Upon the recommendation of the City Engineer, the Water Meter Installation for Kerman Garden

Apartments and Helsem Terrace be awarded to: Valley Excavation, Inc., 2985 North Burl Avenue, Suite 103, Fresno, CA 93727 in the amount of Seventy-One Thousand Seven Hundred and Seventy-One Dollars and Zero Cents ($71,770.00).

2. The City Manager is authorized to sign the City's standard form of agreement for construction projects, as contained in the bid package on behalf of the City of Kerman.

The foregoing resolution was introduced at a regular meeting of the City Council of the City of Kerman held on the 30th day of May, 2018, and passed at said meeting by the following vote:

AYES: NOES: ABSENT: ABSTAIN:

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City Council Staff Report Page 4 of 5 Award of Contract for the Water Meter Installation for Kerman Garden Apartments and Helsem Terrace

The foregoing resolution is hereby approved. Rhonda Armstrong

Mayor ATTEST: Marci Reyes City Clerk

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City Council Staff Report Page 5 of 5 Award of Contract for the Water Meter Installation for Kerman Garden Apartments and Helsem Terrace

Attachment ‘B’

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City of Kerman “Where Community Comes First”

MAYOR MAYOR PRO-TEM Rhonda Armstrong Gary Yep

COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER Raj Dhaliwal Espi Sandoval Michel Arvance

DEPARTMENT: FINANCE STAFF REPORT

CITY COUNCIL MEETING COUNCIL MEETING DATE: MAY 30, 2018

To: Mayor and City Council From: Carolina Camacho, Interim Finance Director Subject: Budget Workshop Fiscal Year 2018/2019

RECOMMENDATION Council to review and consider proposed City of Kerman Fiscal Year 2018/2019 Operating and Capital Budgets and provide comments. EXECUTIVE SUMMARY The budget workshop for Fiscal Year 2018/2019 is to provide Council the opportunity to review and comment on the proposed Operation and Capital Budgets for Fiscal Year 2018/19 prior to adoption of the final budget on June 6, 2018. General Fund The General Fund accounts for activities supported by the general government that are paid with revenue that is not restricted for a special purpose. These activities are police, parks, planning, community development and administrative services. Revenues are projected to increase 7.5% or $369,467, and Operating Expenditures are projected to increase 8.3 % or $436,528 creating a General Fund operational deficit of $429,115 after transfers. The revenue increase is attributed to different factors such increase in building fees, sales tax, property tax, and youth and recreation program fees and Licenses and Permits. Some of the projected revenue amounts are:

Adopted Budget Budget

2017/2018 2018/2019 Increase %

• Property Tax 1,835,000 1,906,600 71,600 3.9 • Sales Tax 1,799,464 1,955,000 155,536 8.6 • Building Fees 200,000 237,500 37,500 18.7 • Licenses and Permits 74,750 77,000 2,250 3 • Youth and Recreation Program Fees 41,800 46,353 4,553 10.9

The expenditures increase are due to personnel and operational costs. General Fund personnel cost increase 6.4% or $241,411, operations and maintenance 13.2% or $194,654 and Minor Capital 2.1% or $463 compared with FY 17-18 adopted budget. Some of the personnel cost increase are medical benefits, retirement, workers compensation, MOU negotiation, and merit increases. The table below shows the expenditures summary by department.

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City Council Staff Report Page 2 of 4 Presentation Budget workshop Fiscal Year 2018/2019

Enterprise Funds The Enterprise Funds provide utility services such as water, sewer, solid waste, storm drain, and street sweeping to the residents of Kerman. Revenues collection from the fees billed for the services provided are the source to cover the operating expenditures, debt obligations, repairs and replacement of infrastructure. The total combined budgeted revenues of the Enterprise Funds for Fiscal Year 2018/2019 is $4,457,713, which represents a slight decrease of 0.04 percent from Fiscal Year 2017/2018 adopted budget. The net decrease is attributed to water conservation by the City of Kerman residents. Below are presented the FY2018/2019 projected revenue by source.

Adopted Budget2017/18 vs

Department Personnel O & M Capital Total Budget 2018/2019City Council 17,000 16,084 0 33,084 2,606City Attorney 0 85,000 0 85,000 0General Administration 150,846 165,105 0 315,950 42,586Administrative Services 29,850 96,137 1,000 126,987 (3,217)Legislation 26,022 34,248 0 60,270 19,404Planning 152,666 62,111 0 214,776 23,630Engineering 0 35,000 0 35,000 5,000Building Inspection 39,605 88,419 0 128,024 (23,754)Recreation Administration 144,423 43,054 0 187,477 (145,741)Building Maintenance 240,562 70,041 0 310,603 137,946Senior Center Services 98,106 30,672 0 128,778 2,439Aquatics Program 36,590 15,924 0 52,514 14,737Planned Recreation 27,453 6,851 0 34,304 2,651Youth Serivce Bureau 55,207 8,185 0 63,392 4,183Community Teen Center 87,252 42,604 5,600 135,456 49,997Police Operations 2,802,736 787,950 12,663 3,603,349 313,098Animal Control 46,065 15,602 0 61,667 (1,344)Building/Park Operations 75,762 61,744 3,000 140,506 (7,693)

Total FY 2018-19 4,030,144$ 1,664,730$ 22,263$ 5,717,137$ 436,528$

Total Adopted Budget FY 2017-18 3,788,733$ 1,470,076$ 21,800$ 5,280,609$

% Increase (Decrease) 6.4% 13.2% 2.1% 8.3%

*Increase/(Decrease)

Adopted Budget2017/18 vs

Description User Fees PenaltiesInterest Earned Rent

Other Income Total Budget 2018/2019 %

Water 1,540,000 40,500 5,000 0 5,000 1,590,500 (38,614) -2.37%Sewer 1,521,000 24,000 7,500 19,000 5,000 1,576,500 8,500 0.54%Solid Waste 1,133,194 15,500 3,000 0 61,469 1,213,163 27,209 2.29%Storm Drainage 76,000 1,300 250 0 0 77,550 1,075 1.41%

Total 4,270,194$ 81,300$ 15,750$ 19,000$ 71,469$ 4,457,713$ ($1,829) -0.04%

Enterprise Funds Revenue Summary

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City Council Staff Report Page 3 of 4 Presentation Budget workshop Fiscal Year 2018/2019

The operational expenditures for the Enterprise Funds is $4,586,989 in Fiscal Year 2018/2019, compared to $4,436,710 in Fiscal Year 2017/2018 adopted budget, an increase of $150,279 or 3.39 percent. The table below shows the expenditures summary of each fund by the use of sources.

Internal Service Fund Internal Service Funds provides goods and services to other funds, departments, or agencies of the City. The charges to each City Operating Department is the source of income to cover the maintenance and operation costs for vehicles serviced by the Funds, such as gasoline, tire replacements, periodic maintenance/repair, and other operating costs for equipment such as computer supplies. Also, it is used to accumulate funds over time for the replacement of the equipment. The Fiscal Year 2018/2019 Internal Service Funds budget includes funding of $624,890 for personnel, contract services, operating supplies and the replacement of scheduled vehicles and computer equipment as needed. It also includes $696,938 in total revenues.

Adopted Budget2017/18 vs

Description Personnel O & M Debt Service Op. Capital Total Budget 2018/2019 %

Water 764,617 736,976 165,000 57,656 1,724,249 61,894 3.72%Sewer 667,476 657,386 217,907 16,929 1,559,699 56,389 3.75%Solid Waste 190,936 1,033,276 0 4,304 1,228,516 23,941 1.99%Storm Drainage 41,093 30,308 0 3,125 74,526 8,056 12.12%

Total 1,664,122$ 2,457,945$ 382,907$ 82,015$ 4,586,989$ 150,279$ 3.39%

*Increase/(Decrease)

Enterprise Funds Operational Expenditure Summary

Adopted BudgetVehicle/ 2017/18 vs

Equipment Technology Total Budget 2018/2019 %RevenuesCharges to Departments 628,285 67,152 695,438 76,159 12.28%Interest Earnings 1,000 500 1,500 500 50.00%Total Sources of Funds 629,285$ 67,652$ 696,938$ 76,659$ 12.36%

ExpendituresMaintenance 448,120 61,370 509,490 41,363 8.84%Replacement 105,400 10,000 115,400 (142,600) -55.27%Total Uses of Funds 553,520$ 71,370$ 624,890$ (101,237)$ -13.94%

Net To (From) Reserves 75,765$ (3,718)$ 72,047$ 177,896$

* Charges to departments include Patrol vehicles loan payment*Increase/(Decrease)

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City Council Staff Report Page 4 of 4 Presentation Budget workshop Fiscal Year 2018/2019

Special Revenue Funds and CIP Special Revenue Funds are funded by grants, contributions, assessments and other sources that require the funds to be used for specific purposes or have special reporting requirements. A small portion of the revenue in these funds is used in the operational budgets, while most of the funds are transferred for use in the Capital Projects budgets. The specific operational Special Revenue Funds budgets are included in the section of the department that manages the respective budget.

FISCAL IMPACT Budget workshop only, no fiscal impact until adopted PUBLIC HEARING None Attachment A. Workshop Budget

Description Streets DIF's Other Water Fund Parks L&LMDPublic Safety Nutrition Transit Total

RevenuesGas Tax 255,482 255,482Measure "C" 401,990 401,990Article III and Article VIII 485,494 485,494Federal and State Grants 628,279 628,279Comm Development & Block Grants 340,000 340,000Traffic Congestion Relief (Prop 42) 128,654 128,654Road Maintenance & Rehabilitation Act 242,681 242,681Street Sweeping 22,687 22,687Special Assessments 232,787 232,787Development Impact Fees 574,500 574,500State of CA DWR Grant 2,223,383 2,223,383Public Safety Contracts & Grants 103,000 103,000Nutrition 12,000 12,000Local Transit 133,405 133,405Interest Income 3,575 3,575Operating Transfers In 84,767 9,625 10,000 104,392Total Sources of Funds 2,253,609 574,500 2,223,383 340,000 232,787 103,000 21,625 143,405 5,892,309

ExpendituresProgram Operational Expenditures 907,878 173,855 103,000 21,625 143,405 1,349,762Operational Transfers Out 84,767 92,400 177,167Transfer to Capital Projects 1,777,800 170,000 2,223,383 4,171,183Total Uses of Funds 2,770,445 262,400 2,223,383 0 173,855 103,000 21,625 143,405 5,698,112

Net To (From) Reserves (516,836)$ 312,100$ -$ 340,000$ 58,932$ -$ -$ -$ 194,197$

Special Revenue Funds Revenue and Expenditure Summary FY 2018/2019

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