chino city council successor agency to the …

Those persons wishing to speak on any item included on the agenda should fill out and submit to the City Clerk a “Request to Speak” form (name and address optional) which is available at the entrance to the City Council Chambers.

The City of Chino complies with the Americans with Disabilities Act. If you require a reasonable accommodation to participate in this meeting, please contact the City Clerk’s Office (909) 334-3306, at least 48 hours prior to the advertised starting time of the meeting.

Any documents produced by the City and distributed to a majority of the City Council regarding any item on this agenda will be made available in the City Clerk’s Office during normal business hours at City Hall located at 13220 Central Avenue, Chino. In addition, such documents will be posted on the City’s website at www.cityofchino.org.

CHINO CITY COUNCIL SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

REGULAR MEETING – CITY HALL COUNCIL CHAMBERS 13220 CENTRAL AVENUE

CHINO, CA 91710

TUESDAY JULY 21, 2015

CLOSED SESSION – 6:30 PM OPEN SESSION – 7:00 PM

AGENDA

ROLL CALL

Council Members: Yates, Ulloa, Duncan, Elrod, Haughey.

CLOSED SESSION

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION. Pursuant to Paragraph (1) of subdivision (d) of Government Code Section 54956.9: Catherine Marie Arlandson v. City of Chino, et al. (Case No.: CIVDS 1503008)

FLAG SALUTE

CEREMONIALS

Presentations

National Association of School Resource Officers Regional Exceptional Service Award - Officer Kato

PUBLIC COMMUNICATIONS

This is the time and place for the general public to address the City Council about subjects that do not appear elsewhere on the agenda. Due to Council policy and Brown Act requirements, action will not be taken on any issues not on the Agenda. Ordinance No. 97-

http://www.cityofchino.org/

CHINO CITY COUNCIL JULY 21, 2015 2

08 (Chino Municipal Code Section 2.04.090) limits speakers to no more than five (5) minutes in which to address Council.

CONSENT CALENDAR

At this time, members of the public may present testimony as to why an item should be removed from the Consent Calendar for separate discussion. Unless a member of the public or City Council requests that an item be removed from the Consent Calendar, all items will be acted upon as a whole and by one vote. Items removed from the Consent Calendar will be acted upon separately, following the Public Hearing procedures.

1. Warrants. Approve expenses as audited and within budget for warrants 722929 to 723256, and Electronic Fund Transfers 501008E to 501103E, totaling $4,794,118.44.

2. Minutes. Regular Meeting of July 7, 2015 (Elrod Absent).

3. Elected City Officials’ Report Regarding Travel, Training, and Meetings. Receive and file the Elected City Officials' Report reflecting City Council business related expenses incurred by the City.

4. Master Contract - Chino Valley Unified School District. Approve a Master Contract with the Chino Valley Unified School District in the amount of $1,097,233 for the provision of Community Services programs for Fiscal Year 2015-16.

5. General Fund Transfer to Sewer Enterprise Fund. Authorize the City Manager to transfer $1.04 million from The General Fund Reserve to the Sewer Enterprise Fund.

6. Landscape and Street Light Maintenance District 2002-1 (Annexation/Zone No. 63) for Tract Map No. 18880. Approve the Engineer’s report and adopt Resolution No. 2015-051 ordering the annexation of Tract Map No. 18880 into the Landscape and Street Light Maintenance District 2002-1 (Annexation/Zone No. 63).

7. Notice of Completion - Old School House Museum Restroom Renovation Project. Accept the Old School House Museum Restroom Renovation Project constructed by New Millennium Construction Services, Chino Hills, CA as complete.

8. The Preserve Development Agreement Annual Compliance Certification. Pursuant to the annual review of the Preserve Development Agreement with Lewis Operating Corporation, certify that the entities are in compliance with the terms and conditions of the Development Agreement and provide a Certificate of Compliance stating this fact.

9. Award of Contract - Drinking Water Analysis and Related Consultant Services. Award a contract in the amount of $49,927 to Eurofins Eaton Analytical, Inc., Monrovia, CA for drinking water analysis and related consultant services.

10. Award of Contract- Pine Avenue Flood Safety Gates Project. Award a construction contract to AToM Engineering Construction, Inc., Hemet, CA in the amount of $41,398 for the Pine Avenue Flood Safety Gates Project.

11. Cellular Communications Lease Agreement with SBA 2012 TC Assets, LLC. Approve a new agreement with SBA 2012 TC Assets, LLC for an existing cellular tower facility located on City property at 5251 Phillips Boulevard.

12. Reimbursement Agreement – Hellman Avenue Improvements. Approve a Reimbursement Agreement in the amount of $72,500 with Lennar Homes of California, Inc. for the Hellman Avenue Improvements project.


13. Reimbursement Agreement for future improvements at shared intersections - City of Ontario from Majestic Chino Gateway, LLC. Approve a reimbursement agreement with the City of Ontario for Majestic Chino Gateway LLC's fair share costs for future improvements at shared intersections.

14. Reimbursement Agreement for future improvements at shared intersections - City of Ontario from Sares-Regis. Approve a reimbursement agreement with the City of Ontario for Sares Regis Group's fair share costs for future improvements at shared intersections.

M _____ S _____ RC _____

PUBLIC HEARING

Prior to the vote of the City Council, any member of the audience will have the opportunity to address Council on any items listed under Public Hearings. Council requests, but it is not required, that you state your name and address prior to making any remarks.

15. Landscape and Streetlight Maintenance Districts Assessments For Fiscal Year 2015-16. Conduct public hearing for Fiscal Year 2015-16 assessments and adopt Resolution No. 2015-049 Directing City Clerk to file with County Controller Recorder.

Staff Report by: Jose Alire, Assistant City Manager/Public Works.

RECOMMENDATION: 1) Conduct the public hearing; 2) adopt Resolution No. 2015-049; and 3) direct the City Clerk to file a certified copy of the diagram and assessments with the County Auditor/Controller-Recorder.

M _____ S _____ RC _____

NEW BUSINESS

16. Approval of Bond Documents for Special Tax Bonds for Community Facilities District No. 2003-3 Improvement Area No. 6. Adopt Resolution No. 2015-048, authorizing the issuance of special tax bonds and approving the Preliminary Official Statement and property appraisal.

Staff Report by: Rob Burns, Director of Finance.

RECOMMENDATION: Adopt Resolution No. 2015-048 of the City Council of the City of Chino, acting as the legislative body for Community Facilities District No. 2003-3 Improvement Area No. 6 of the City of Chino (the “District”), approving the substantially final forms of the Preliminary Official Statement, Absorption Study, and property appraisal (collectively, the “Bond Documents”).

M _____ S _____ RC _____

17. Utility Rate Structure Analysis. Calling a special notice proceeding and setting time and place for the public hearing on rates, fees, and charges for water, sanitary sewer, street sweeping, and refuse and recycling services.

Staff Report by: Rob Burns, Director of Finance.

RECOMMENDATION: Adopt Resolution No. 2015-052, calling a special notice proceeding and setting time and place for the public hearing on rates, fees, and charges for water, sanitary sewer, street sweeping, and refuse and recycling services.

M _____ S _____ RC _____


MAYOR AND COUNCIL REPORTS

This is the time and place for the Mayor and Council Members to report on prescheduled Council Committee Assignment Meetings that were held since the last Regular Council Meeting, and any other items of interest. Upon request by an individual Council Member, the City Council may choose to take action on any of the subject matters listed below.

Mayor Yates

Mayor Pro Tem Ulloa

Council Member Duncan

Council Member Elrod

Council Member Haughey

City Manager's Report

City Attorney's Report

Police Chief's Report

Fire Chief's Report

ADJOURN

The next Regular Meeting of the City Council will be held on Tuesday, August 4, 2015 at 7:00 p.m. (Closed Session at 6:00 p.m. if necessary) in these Council Chambers. I, Angela Robles, City Clerk of the City of Chino, hereby declare that on Friday, July 17, 2015, this agenda was posted on the south window of Chino City Hall and this agenda together with all of the agenda reports and related documents were posted on the City’s website at www.cityofchino.org by myself or under my direction.

_______________________________________

Angela Robles, City Clerk

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CEREMONIALS Packet Pg. 5

Revenue: Expenditure:

Transfer In: Transfer Out:

M E M O R A N D U M CITY OF CHINO

FINANCE DEPARTMENT

COUNCIL MEETING DATE: JULY 21, 2015

TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: ROB BURNS, DIRECTOR OF FINANCE SUBJECT: WARRANTS.

RECOMMENDATION

Approve expenses as audited and within budget for warrants 722929 to 723256, and Electronic Fund Transfers 501008E to 501103E, totaling $4,794,118.44.

FISCAL IMPACT

Sufficient funds have been included in the Fiscal Year 2014-15 Operating Budget.

6.1

CONSENT CALENDAR Packet Pg. 6

COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: WARRANTS PAGE 2 BACKGROUND

Having been approved as prescribed by Government Code Section 37202 and 37208, the following demand registers are herewith submitted for Council ratification:

NO. WARRANTS DATE FY AMOUNT

1. 722929 to 723034 6/11/15 14-15 $309,100.70 2. 501008E to 501044E 6/11/15 14-15 $1,560,814.01 3. 723035 to 723137 6/18/15 14-15 $1,636,779.96 4. 501045E to 501068E 6/18/15 14-15 $49,161.62 5. 723138 to 723256 6/25/15 14-15 $1,056,750.60 6. 501069E to 501103E 6/25/15 14-15 $181,511.55

*Denotes handwritten warrant

E: Electronic Funds Transfer

TOTAL $4,794,118.44

ISSUES/ANALYSIS

See attached exhibit for detailed information on warrants exceeding $25,000.

RB:hm

Attachment: Exhibit 1

6.1


Exhibit 1

Council Meeting Date: 7/21/15

CITY OF CHINO A/P WARRANT REGISTER AMOUNTS OVER $25,000

Check# Check Date Vendor Name/Description Amount

723013

6/11/15

Southern California Edison Co.: Service period 5/5-6/4/15

$38,808.31

723021

6/11/15

New Tangram: Senior Center multi-purpose room supplies

$41,517.79

723051

6/18/15

Carvajal Trucking & Tractor, Inc.: Contract services-concrete repairs

$111,815.12

723060

6/18/15

Christensen Bros. General Engineering: Contract services-Riverside Dr. storm drain

$458,332.33

723082

6/18/15

Gutierrez, Fierro & Erickson: Contract services-City Attorney

$90,675.48

723087

6/18/15

International Computing Systems: Ayala Park restroom project

$46,550.00

723090

6/18/15

KEC Engineers: Contract services-inspection services

$45,641.25

723095

6/18/15

Lennar Homes: Security deposit refund

$32,500.00

723118

6/18/15


$96,060.30

723132

6/18/15

US Bank Corporate Payment System: Credit card payment-May 2015

$38,364.46

723134

6/18/15

Waste Management: Contract services-collection

$627,155.29

723139

6/25/15

ACCELA, Inc.: Software maintenance

$209,906.07

723233

6/25/15

San Bernardino County Info. Services: Contract services for P.D. radio service

$26,573.34

723235

6/25/15

Siemens Industry, Inc.: Traffic signal maintenance

$41,198.23

723237

6/25/15


$37,282.58

723254

6/25/15

Waste Management: Contract services-disposal

$489,959.89

TOTAL 16 checks $2,432,340.44

6.1.a

1174 : Warrants Packet Pg. 8

CHINO CITY COUNCIL SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

REGULAR MEETING – CITY HALL COUNCIL CHAMBERS 13220 CENTRAL AVENUE

CHINO, CA 91710

TUESDAY JULY 7, 2015

CLOSED SESSION – 6:00 PM OPEN SESSION – 7:00 PM

M I N U T E S

CALL TO ORDER

The July 7, 2015, Regular Meeting of the Chino City Council / Successor Agency to the Redevelopment Agency was called to order at 6:00 p.m. by Mayor Dennis R. Yates in the City Council Chambers.

ROLL CALL

Present: Mayor Dennis R. Yates, Mayor Pro Tem Eunice Ulloa, and Council Members Glenn Duncan and Tom Haughey.

Absent: Council Member Earl Elrod.

CLOSED SESSION

The City Council recessed to Closed Session at 6:00 p.m.

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION. Pursuant to Paragraph (1) of Subdivision (d) of Government Code Section 54956.9: 1. Jose Alexander Ventura v. County of Los Angeles, et al. (Case No. USDC CV-08- 05756) SVW (PJWx) 2. Chino Basin Municipal Water District v. City of Chino et al. (Case No. RCVRS 51010)

3. United States ex rel. John Hendrix, et al. v. J-M Manufacturing Co. Inc. (Case No.: ED CV06-0055-GW)

B. CONFERENCE WITH LABOR NEGOTIATORS. Pursuant to Government Code Section 54957.6. Agency Negotiator: Anthony Arroyo, Director of Human Resources/Risk Management. Employee Organizations: Chino Police Officers Association; Chino Police Management Association; San Bernardino Public Employees Association (Professional, Technical, Clerical); Chino Public Works Services Association; and unrepresented employees.

The City Council reconvened at 6:44 pm. Mayor Yates reported that staff was given authority to settle the matter for Closed Session Items A1 and A3. The City Council provided direction to staff on Items A2 and B and no reportable action was taken. The City Council recessed to Open Session beginning at 7:00 pm.

6.2



FLAG SALUTE

Mayor Yates led the assembly in reciting the Pledge of Allegiance.

CEREMONIALS

Proclamations

Parks and Recreation Month - July 2015.

Mayor Yates read into the record the Proclamation designating July 2015 as “Parks and Recreation Month” in the City of Chino and presented it to the Linda Reich, Director of Community Services and Jose Alire, Assistant City Manager/Public Works. A video was shown highlighting the various recreation programs that are available to the community.

Presentations

Mayor's Home Beautification Award - July 2015.

Mayor Yates presented the July 2015 Mayor’s Home Beautification Award to Tony and Joan Garcia of Chino.

PUBLIC COMMUNICATIONS

Michael Tafoya of Living Word Assembly provided the Invocation.

CONSENT CALENDAR

1. Warrants. Approve expenses as audited and within budget for warrants 722956 to 723034, and Electronic Fund Transfers 500948E to 501044E, totaling $3,437,824.42

2. Minutes. Regular Meeting of June 16, 2015 (all Members present).

3. Elected City Officials’ Report Regarding Travel, Training, and Meetings. Receive and file the Elected City Officials' Report reflecting City Council business related expenses incurred by the City.

4. 2015 Justice Assistance Grant. Authorize the Acceptance of the 2015 Justice Assistance Grant in the amount of $18,631 for the purchase of forty-two (42) Glock Model 17 Generation 4 (9mm) handguns to be issued to sworn personnel.

5. California Alcoholic Beverage Control 2015/16 GAP Grant. Adopt Resolution No. 2015-042 authorizing the acceptance of the California Department of Alcoholic Beverage Control 2015/16 GAP Grant in the amount of $29,206.

6. Reimbursement Agreement For Water Improvements - PM 16381-1 (Master Development Corporation). Approve a reimbursement agreement and an immediate reimbursement in the amount of $42,262.00 to Master Development Corporation for water improvements - PM 16381-1.

7. State Advocacy Contract - Joe A. Gonsalves & Son. Approve a contract with Joe A. Gonsalves & Son, Sacramento, CA in the amount of $42,000.00 for state advocacy services set to end June 30, 2016.

Moved by Council Member Duncan, seconded by Mayor Pro Tem Ulloa, and carried on a 4-0-1 roll call vote to approve Consent Calendar Item nos. 1 through 7 as presented.

6.2



AYES: DUNCAN, HAUGHEY, ULLOA, YATES.

NOES: None.

ABSENT: ELROD.

NEW BUSINESS

8. Award of Contract - Street Rehabilitation 2014-2015. Award a construction contract in the amount of $2,088,741 to R.J. Noble Company, Orange CA for the street rehabilitation project at various locations.


Moved by Council Member Duncan, seconded by Council Member Haughey, and carried on a 4-0-1 roll call vote to 1) approve an additional appropriation in the amount of $320,000 from the Transportation Fund, with a corresponding year end transfer from General Fund reserves; 2) increase the project budget for the Street Rehabilitation Project 2014-2015 by the same amount; 3) award a construction contract in the amount of $2,088,741 to R.J. Noble Company, Orange, CA for construction of the Street Rehabilitation Project; 4) authorize expenditures of up to $210,000 for project contingencies and $21,000 for construction engineering services; and 5) authorize the City Manager to execute the necessary documents on behalf of the City.


NOES: None.

ABSENT: ELROD.

9. Cooperative Agreement – Ramona Avenue Reconstruction. Approve a Cooperative Agreement and reimbursement to the County of San Bernardino in the amount of $300,000 for the Ramona Avenue Reconstruction


In response to Council’s questions Mr. Alire explained that the County of San Bernardino is the lead agency on this project and the anticipated completion date is the summer of 2016.

Moved by Council Member Haughey, seconded by Mayor Pro Tem Ulloa, and carried on a 4-0-1 roll call vote to 1) approve a Cooperative Agreement with the County of San Bernardino for the Ramona Avenue Reconstruction project; 2) authorize a reimbursement in the amount of $300,000 to the County of San Bernardino; 3) and authorize the City Manager to execute the necessary documents on behalf of the City.


NOES: None.

ABSENT: ELROD.

10. Acquisition of Real Property located at 13260 Central Avenue, Chino - Chino Superior Court House. Approve the Purchase and Sale Agreement between the County of San Bernardino and the City of Chino in the amount of $2,262,000.

Staff Report by: Matthew C. Ballantyne, City Manager.

6.2



In response to Mayor Pro Tem Ulloa’s question, City Manager Ballantyne explained that when the Superior Courthouse moved from this location it presented an opportunity for the City to acquire it and become the sole owner of all parcels within the Civic Center.

Mayor Pro Tem Ulloa recommended the City Council conduct multiple workshops to discuss the future of the Civic Center. She stressed the importance of public input before a decision is made to consider alternative locations for the Civic Center.

Moved by Council Member Duncan, seconded by Council Member Haughey, and carried on a 4-0-1 roll call vote to 1) appropriate $131,000.00 from the unappropriated reserves from the Building Management Fund; 2) authorize a corresponding year end transfer from the General Fund reserves; 3) approve a Purchase and Sale Agreement to acquire the real property located at 13260 Central Avenue, Chino, between the County of San Bernardino and the City of Chino in the total amount of $2,262,000.00; 4) Adopt Resolution 2015-050 accepting the deed of trust pursuant to Government Code Section 27281; 5) subsequent to the recordation of the deed, approve a rental agreement between the Judicial Council of California and the City of Chino for the lease of the former Court House for storage of court owned furniture and materials; and 6) authorize the City Manager to execute all necessary documents on behalf of the City.


NOES: None.

ABSENT: ELROD.

MAYOR AND COUNCIL REPORTS

11. League of California Cities Annual Conference - Designation of Voting Delegates. Ratify the designation of Voting Delegate and Alternates for the League of California Cities Annual Conference in September 2015.

Staff Report by: Dennis R. Yates, Mayor.

Moved by Council Member Duncan, seconded by Mayor Yates, and carried on a 4-0-1 roll call vote to ratify the designation of Council Member Glenn Duncan as Voting Delegate; Council Member Tom Haughey as 2nd Voting Delegate-Alternate; and Mayor Pro Tem Eunice Ulloa as 3rd Voting Delegate-Alternate for the League of California Cities Annual Conference in September 2015.


NOES: None.

ABSENT: ELROD.

12. Community Event Support Program. Approve a community support contribution in the amount of $2,000 to the Chino Police Explorers.

Staff Report by: Dennis R. Yates, Mayor.

Moved by Mayor Yates, seconded by Council Member Duncan, and carried on a 4-0-1 roll call vote to approve a community support contribution in the amount of $2,000 to Chino Police Explorers to be expended from the Community Event Support Program.


NOES: None.

6.2



ABSENT: ELROD.

Mayor Yates

Mayor Yates encouraged the community to attend the Summer Concerts at City Hall taking place on Thursdays from 7-9 pm through August 13th. He also highlighted the Seniors at the Square events taking place at Aguiar Square on Mondays from 6-8 pm through August 24th.

Mayor Pro Tem Ulloa

Mayor Pro Tem Ulloa reported on meetings and events attended since the last meeting that included the LDS Flag Raising Ceremony. She congratulated the Chino Police Department and City staff for a successful Fireworks Spectacular event. Lastly she noted that City parks are watered with recycled water; therefore, are able to be kept green for the benefit of the community.

Council Member Haughey

Council Member Haughey recognized the Chino Police Department, Fire District, and staff for a successful Fireworks Spectacular event. He reminded the community that on Thursday, July 23, 2015, the City of Chino will host the Special Olympic Athletes from Poland and Laos. The athletes will be present at the Concerts on the Lawn event taking place on July 23rd and he encouraged the community to attend.

Mayor Yates recognized Cal Poly Pomona for housing the athletes during their visit to the Chino Valley.

Council Member Duncan

Council Member Duncan reported on meetings and events attended since the last meeting that included the Building Industry Association meeting; Housing Policy Committee meeting; West Valley Vector Control meeting; Chino Hills State of the City Address; YMCA Board meeting; League of California Cities meeting; Utility Rate meeting; and San Bernardino Retirement System Board of Director meeting. Council Member Duncan also reported that he volunteered at the fireworks booth to benefit the Chino Neighborhood House.

Council Member Elrod – absent.

City Manager's Report

City Manager Ballantyne had no report.

City Attorney's Report

City Attorney Jimmy Gutierrez had no report.

Police Chief's Report

Chief Karen Comstock provided a summary of the 4th of July Chino Police deployment and enforcement efforts. Overall the City experienced a decrease in calls for service and fireworks related calls from last year. Chief Comstock reported that 137 pounds of illegal fireworks were confiscated. Lastly she recognized the Fairgrounds and Fair Board for allowing the City access to the parking area during the City’s Fireworks Spectacular event on July 3rd.

Fire Chief's Report

Fire Chief Tim Shackelford had no report.

6.2



ADJOURN

The meeting adjourned at 7:48 p.m. The next Regular Meeting of the City Council will be held on Tuesday, July 21, 2015 at 7:00 p.m. (Closed Session at 6:00 p.m. if necessary) in these Council Chambers.

APPROVED AND ADOPTED THIS _______ DAY OF _________________ 2015.

DENNIS YATES, MAYOR

ATTEST:

ANGELA ROBLES, CITY CLERK

**************************************************

(These minutes are not official until signed.)

6.2


Revenue: Expenditure: 1002000-43320



ADMINISTRATION DEPARTMENT


TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: ANGELA ROBLES, CITY CLERK SUBJECT: ELECTED CITY OFFICIALS’ REPORT REGARDING TRAVEL, TRAINING,

AND MEETINGS.

RECOMMENDATION

Receive and file the Elected City Officials’ Report reflecting City Council business related expenses incurred by the City.

FISCAL IMPACT

Funding is available in the adopted Fiscal Year 2015-16 Budget.

6.3


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: ELECTED CITY OFFICIALS’ REPORT REGARDING TRAVEL, TRAINING, AND MEETINGS PAGE 2 BACKGROUND

In accordance with Government Code Sections 53232.2 and 53232.3, implementing Assembly Bill 1234 (AB 1234), on January 1, 2006, the City adopted Resolution No. 2005-093 establishing a Business-Related Expense Policy. On November 5, 2013 the City approved amendments to said Policy by adopting Resolution No. 2013-061. In addition to requiring local agencies to adopt a business-related expense policy, AB 1234 requires that Elected Officials provide a brief report on meetings attended at the expense of the local agency at the next regular meeting of the legislative body.

ISSUES/ANALYSIS

In response to AB 1234, a report regarding Elected City Officials’ Travel, Training, and Meetings (Exhibit A) was created and is placed on the City Council Agenda Consent Calendar, as needed. The documents that pertain to the items listed on Exhibits are available for public inspection at the City Clerk’s office located in City Hall at 13220 Central Avenue, Chino, CA.

Attachment: Exhibit A

6.3


ELECTED CITY OFFICIALS’ REPORT REGARDING TRAVEL, TRAINING, AND MEETINGS

JULY 21, 2015 EXHIBIT A

Event Date Meeting Purpose and Subject Matter City Official Attendees

None

6.3.a

1186 : Elected Officials' Report Packet Pg. 17

Revenue: 33081208-59500 Expenditure: 33081208-41010



COMMUNITY SERVICES DEPARTMENT


TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: LINDA REICH, DIRECTOR OF COMMUNITY SERVICES SUBJECT: MASTER CONTRACT - CHINO VALLEY UNIFIED SCHOOL DISTRICT.

RECOMMENDATION

1) Approve a Master Contract with the Chino Valley Unified School District in the amount of $1,097,233 for the provision of Community Services programs for FY 2015-16; 2) appropriate an additional $270,990 from the unappropriated reserves of the Community Services Fund; 3) increase the revenue budget of the Community Services Fund by $270,990; and 4) authorize the City Manager to execute all necessary documents on behalf of the City.

FISCAL IMPACT

Requires an additional appropriation of $270,990 from the unappropriated reserves of the Community Services Fund with a corresponding increase to the revenue budget.

6.4


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: MASTER CONTRACT - CHINO VALLEY UNIFIED SCHOOL DISTRICT PAGE 2 BACKGROUND

For several years, the City of Chino has partnered with the Chino Valley Unified School District (District). Through this partnership, the City and District work together to provide a variety of programs and services benefiting youth in the community. These programs include counseling, case management, intervention and prevention programming, after school programs, and programs for parents of preschool children.

ISSUES/ANALYSIS

In order to facilitate efficient coordination and implementation of services, the District enters into a contract with the City to provide the services. Once services are rendered, the District reimburses the City. The services included in the Master Contract, which will be billed to the District, total $1,097,233. In the approved FY 2015-2016 budget, $826,243 was appropriated for the programs covered by the Master Contract. In the Master Contract, several programs were adjusted to meet the needs of the community. These program adjustments require an additional appropriation in both expense and revenue of $270,990 to the Community Services Fund.

Exhibit A: Proposed Projects Exhibit B: Vendor Fee Schedule

6.4


6.4.a

1185 : Master Contract - CVUSD Packet Pg. 20

6.4.a

1185 : Master Contract - CVUSD Packet Pg. 21


Transfer In: 530-1000-50000 Transfer Out: 100-1000-40001


FINANCE DEPARTMENT


TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: ROB BURNS, DIRECTOR OF FINANCE SUBJECT: GENERAL FUND TRANSFER TO SEWER ENTERPRISE FUND.

RECOMMENDATION

Authorize the City Manager to transfer $1.04 million from the General Fund Reserve to the Sewer Enterprise Fund.

FISCAL IMPACT

The proposed transfer will increase the Sewer Enterprise Fund balance to an estimated $3.3 million.

6.5


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: GENERAL FUND TRANSFER TO SEWER ENTERPRISE FUND PAGE 2 BACKGROUND

The Sewer Enterprise Fund establishes a separate accounting and financial reporting mechanism for municipal services for which a fee is charged to deliver sewer services to its users.

ISSUES/ANALYSIS

The City's Sewer Enterprise Fund balance was projected to be $2.3 million at the end of Fiscal Year 2014-2015. Staff is recommending a General Fund transfer of $1.04 million to the Sewer Enterprise Fund to increase its fund balance to allow for ongoing operating and capital expenditures.

6.5





PUBLIC WORKS DEPARTMENT


TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: LANDSCAPE AND STREET LIGHT MAINTENANCE DISTRICT 2002-1

(ANNEXATION/ZONE NO. 63) FOR TRACT MAP NO. 18880.

RECOMMENDATION

1) Approve the Engineer’s report; 2) adopt Resolution No. 2015-051 ordering the annexation of Tract Map No. 18880 into the Landscape and Street Light Maintenance District 2002-1 (Annexation/Zone No. 63); and 3) authorize the City Manager to execute the necessary documents on behalf of the City.

FISCAL IMPACT

There is no direct fiscal impact to the City.

6.6


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: LANDSCAPE AND STREET LIGHT MAINTENANCE DISTRICT 2002-1 (ANNEXATION/ZONE NO. 63) FOR TRACT MAP NO. 18880 PAGE 2 BACKGROUND

On August 19, 2013, the City of Chino Planning Commission conditionally approved Tentative Tract Map No. 18880 to construct 39 single-family residents on approximately 8.9 acres generally located south of Philadelphia Street and east of Norton Avenue (Exhibit A - Site Plan). The conditions of approval required the Owner to annex the property into the Landscape and Street Light Maintenance District 2002-1.

ISSUES/ANALYSIS

The property owner has filed the required petition to be annexed into the City’s Landscape and Street Lighting Maintenance District. In addition, the property owner filed with the City Clerk an assessment ballot in favor of annexation. According to State law, if a petition to the City of Chino to undertake annexation proceedings and an assessment ballot in favor of the proposed assessment are obtained from the owner of the property involved in the annexation, the City Council may complete the annexation by adopting a resolution annexing the project into the City’s Landscape and Street Lighting Maintenance District 2002-1.

It is estimated that the annual assessment for this project will be $402.29 for the first year. The actual assessment will be based on actual costs and the assessment amount is subject to change each year.

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6.6.a

1176 : LSLMD 2002-1 Annexation/Zone 63 for TM 18880 Packet Pg. 26

CITY OF CHINO, CALIFORNIA

COUNTY OF SAN BERNARDINO

LANDSCAPE AND STREET LIGHT MAINTENANCE DISTRICT NO. 2002-1

ANNEXATION NO. 63 ZONE NO. 63

TRACT MAP NO. 18880

(VD CHINO 39, LLC)

ENGINEER’S REPORT

FISCAL YEAR 2015-2016

6.6.b


ENGINEER’S REPORT TRACT MAP NO. 18880 July 21, 2015 Page 2 of 4

L&SLMD-EngRpt-TM18880-Zone 63

Section 1. – Authority of Report This report is in compliance with the requirements of Article 4, Chapter 1, Part 2, Division 15 of the Streets and Highways Code, State of California (Landscaping and Lighting Act of 1972). Section 2. – General Description The City Council has required that developers of residential tracts or commercial/industrial parcels annex said property to the Landscape and Street Light Maintenance District No. 2002-1 for the purpose of off-setting the costs associated with maintaining, operating and servicing of common landscaped areas and street lights in said property. The designated contiguous property to be annexed is described as follows:

TRACT MAP NO. 18880

ANNEXATION/ZONE NO. 63 This is a development comprised of 39 residential homes located on the south side of Philadelphia Street and east side of Norton Avenue.

Section 3. – Maintenance Detailed maintenance activities shall include: A. STREET LIGHTS – The repair, removal or replacement of all or any part necessary to

provide for the normal operation and maintenance of street lights. Routine repairs include replacement of the light bulb, fuse or photocell. Extraordinary repair includes replacement of the ballast, luminaire or correction of a wiring problem. Also included are the energy costs of the street light system.

B. LANDSCAPING - The repair, removal or replacement of all or any part of any

improvement providing for the life, growth, health and beauty of the landscaping including cultivation, irrigation, trimming, spraying, fertilization or treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; the maintenance, repair and replacement as necessary of all irrigation systems and the removal of graffiti from walls immediately adjacent to the cultivated areas. Also included are energy costs of the irrigation control system.

Section 4. – Plans and Specifications Plans and specifications for the landscaping and street lighting have been prepared and will be approved as a part of the improvement plans.

6.6.b




In conformance with the Conditions of Approval, and by reference, they are made a part of this report to the same extent as if said plans and specifications were attached hereto. Exhibits define the boundaries of the proposed annexation and the maintenance area. These plans and exhibits are on file and available for review in the Public Works Department and, in conjunction with County Assessor’s maps of the area to be annexed, comprise the assessment diagrams for the respective annexations. The said Assessor’s maps are on file in the office of the County Assessor and are by reference made a part of this report to the same extent as if they were attached hereto. Section 5. – Estimated Cost and Assessments No City costs will be incurred for parkway or street light improvement construction. All improvements will be constructed by the developer. Based on data from other cities, contract analysis and developed work standards, it is estimated that the total maintenance cost for street lighting will be approximately $402.29 for the first year for TRACT MAP NO. 18880. This cost is estimated only; actual assessment will be based on actual cost data. The estimated total costs for Annexation No. 63 into Landscape and Street Light Maintenance District No. 2002-1 are shown below.

TRACT MAP NO. 18880 ANNEXATION/ZONE NO. 63

ESTIMATE OF THE COST OF MAINTENANCE WORK

Landscape Maintenance Contract

Landscape $ 0.21 Per square foot per year

Water $ 0.17 Per square foot per year

Electrical $ 0.06 Per square foot per year

TOTAL $ 0.44 Per square foot per year

Monument Maintenance $ 300.00 Per year

Equestrian Trail Fence Maintenance $ 0.050 Per linear foot per year

Lighting Maintenance Contract $ 12.00 Per lamp per year

S.C.E.-Owned Street Lights:

6,300 lumen $ $115.67 Per lamp per year





6.6.b




Annual Maintenance Costs for Landscaped Areas

Interior Area: -0- Sq. ft. x $0.44 = $ -0-

Exterior Area: -0- Sq. ft. x $0.44 = $ -0- *

Total Annual Maintenance Costs = $ -0-

Annual Maintenance Costs for Equestrian Trail Fence

Interior Area: -0- Ln. ft. x $0.050 = $ -0-

Exterior Area: -0- Ln. ft. x $0.050 = $ -0- *

Total Annual Maintenance Costs = $ -0- *This amount reflects Council policy to fund 50% of perimeter maintenance costs.

Annual Maintenance Cost of City-Owned Street Lights

LOCATION

LAMP TYPE

NO. OF LIGHTS

ENERGY COSTS PER YEAR

MAINTENANCE COSTS PER YEAR

TOTAL

Interior 6,300-HPS $61.10 $12.00 $ -0-

Interior 9,500-HPS $70.64 $12.00 $ -0-

Interior 16,000-HPS $92.33 $12.00 $ -0-

l

Subtotal = (a)

$

-0-

Perimeter 6,300-HPS $61.10 $12.00 $ -0-

Perimeter 9,500-HPS $70.64 $12.00 $ -0-

Perimeter 16,000-HPS 3 $92.33 $12.00 $ 312.99

Perimeter 22,000-HPS $107.37 $12.00 $ -0-

Perimeter 28,000-HPS $126.51 $12.00 $ -0-

Council policy to fund 50% of perimeter costs Subtotal = (b) $ 156.50

Total Annual Cost of Street Lights

= (a + b)

$

156.50

Annual Maintenance Costs Summary

Landscape Maintenance $ 0.00

Equestrian Trail Maintenance $ 0.00

Street Light Maintenance $ 156.50

County Assessor Charge $100.00 plus $0.30 per Parcel $ 111.70

Total Direct Cost $ 268.20

Supplies & Services (18% of Direct Cost) $ 48.28

Administration (12% of Direct Cost) $ 32.18

Reserve Funds (20% of Direct Cost) $ 53.64

Total Assessment for this Development $ 402.29

Total Assessment Per Lot $ 10.32

Total Monthly Assessment Per Lot $ 0.86

6.6.b


RESOLUTION NO. 2015-051

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, ORDERING THE ANNEXATION OF TRACT MAP NO. 18880 TO LANDSCAPE AND STREET LIGHT MAINTENANCE DISTRICT 2002-1 (ANNEXATION/ZONE NO. 63)

WHEREAS, the City Council of the City of Chino, California, has previously formed a special maintenance district pursuant to the terms of the "Landscaping and Lighting Act of 1972" being Division 15, Part 2, of the Streets and Highways Code of the State of California; said special maintenance district known and designated as Maintenance District 2002-1 (hereinafter referred to as the "Maintenance District"); and WHEREAS, the provisions of Article 2 of Chapter 2 of the "Landscaping and Lighting Act of 1972" authorize the annexation of additional territory to the Maintenance District; and WHEREAS, there has been submitted a map showing the parcels and property proposed to be annexed and included within the boundaries of the Maintenance District; and WHEREAS, the owners of property within the territory proposed to be annexed to the Maintenance District have filed, with the City Clerk, a Petition to the City of Chino to undertake annexation proceedings and an Assessment Ballot in favor of the proposed assessment for the territory proposed to be annexed; and WHEREAS, at this time, this legislative body desires to annex that property shown on the map submitted herewith, and to formally accomplish the annexation proceedings to allow said property to be included within the boundaries of the Maintenance District. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the map attached hereto as Exhibit "A" is hereby approved and adopted, and the original of said map shall be kept on file in the office of the City Engineer. SECTION 3. That this legislative body hereby orders the annexation of all the property as set forth and shown on the map as previously approved and, upon adoption of this Resolution, said property shall be formally included in, and become a part of, the Maintenance District and be subject to future assessments to pay for the costs and expenses of the authorized maintenance and services as necessary for the Maintenance District. SECTION 4. That all future proceedings of the Maintenance District, including the levy of all assessments, shall be applicable to the territory annexed hereunder.

6.6.c


RESOLUTION NO. 2015-051 PAGE 2

APPROVED AND ADOPTED THIS 21st DAY OF JULY 2015.

DENNIS R. YATES, MAYOR ATTEST:

ANGELA ROBLES, CITY CLERK State of California ) County of San Bernardino ) ss. City of Chino ) I, ANGELA ROBLES, City Clerk of the City of Chino, do hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting held on the 21st day of July 2015, by the following votes: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS:

ANGELA ROBLES, CITY CLERK Attachments: Exhibit A Petition for Annexation Proceedings Assessment Ballot

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6.6.f


Revenue: Expenditure: 3508030-43560-PF141





TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: NOTICE OF COMPLETION - OLD SCHOOL HOUSE MUSEUM RESTROOM

RENOVATION PROJECT.

RECOMMENDATION

1) Accept the Old School House Museum Restroom Renovation Project constructed by New Millennium Construction Services, Chino Hills, CA as complete; 2) authorize the Assistant City Manager to file the Notice of Completion; and 3) release the retention funds following the 35-day lien period.

FISCAL IMPACT

The project was included in the Fiscal Year 2014-15 Capital Improvement Program for the Community Development Block Grant Fund, and was completed within budget.

6.7


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: NOTICE OF COMPLETION - OLD SCHOOL HOUSE MUSEUM RESTROOM RENOVATION PROJECT PAGE 2 BACKGROUND

On January 6, 2015, City Council awarded a construction contract to New Millennium Construction Services, Chino Hills, CA in the amount of $29,400 for the renovation of the restrooms at the Old School House Museum. The renovation of the restrooms was inspected and approved by City staff on June 23, 2015.

ISSUES/ANALYSIS

All work has been completed per the terms of the contract and no change order has been issued for this project. The following is a summary of the final accounting of costs for the project: Restroom Renovation Contract (New Millennium Construction Services) $29,400

Final Project Amount $29,400

New Millennium Construction Services has satisfactorily completed all work within the project budget, and has complied with the terms of the contract. The required manufacturers and installation warranties are currently on file with the City. A Notice of Completion has also been prepared for filing with the San Bernardino County Recorder’s Office.

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6.7





COMMUNITY DEVELOPMENT DEPARTMENT


TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: NICHOLAS S. LIGUORI, AICP, DIRECTOR OF COMMUNITY DEVELOPMENT SUBJECT: THE PRESERVE DEVELOPMENT AGREEMENT ANNUAL COMPLIANCE

CERTIFICATION.

RECOMMENDATION

Certify that Chino Development Corporation, Chino Preserve Development Corporation, and Chino Holding Company, LLC are in compliance with the requirements of The Preserve Development Agreement, and approve the issuance of a Certificate of Compliance.

FISCAL IMPACT

There is no fiscal impact.

6.8


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: THE PRESERVE DEVELOPMENT AGREEMENT ANNUAL COMPLIANCE CERTIFICATION PAGE 2 BACKGROUND

In June 2004, the City entered into a Development Agreement (DA) with three entities of the Lewis Operating Company (LOC) known as Chino Development Corporation, Chino Preserve Development Corporation, and Chino Holding Company, LLC. The Agreement was entered into to help guide the orderly development of the Agricultural Preserve Subarea 2 (The Preserve), which was envisioned as a master planned residential and commercial community. Further, the Agreement set out the terms and conditions of development on property owned by LOC, and established the rights and obligations of LOC and the City of Chino during the course of development. At the time of the Development Agreement approval, LOC owned or controlled 1,125 of the approximately 2,500 developable acres in The Preserve. Since the time of the Agreement, LOC has acquired additional property for future development.

In December 2008, the City Council approved an amendment to the 2004 Development Agreement. This amendment provided for additional units to be constructed in The Preserve and adjusted certain due dates for the development of an affordable housing project. The City Council approved a second amendment to the Development Agreement in 2013.

ISSUES/ANALYSIS

One provision of the Preserve Development Agreement is the requirement for an annual review of the terms and conditions of the Agreement, along with the production of an Annual Monitoring Report. Pursuant to Article 11 of the Agreement, the Owners (LOC) are required to produce an annual monitoring report demonstrating the Owners’ compliance with the terms and conditions of the Agreement. Upon receipt of the monitoring report, City staff is to conduct an analysis of the report to determine its accuracy, and then submit a report to the City Council indicating compliance or lack of compliance with the terms and conditions of the Agreement. The Owners have the right to request a formal Certificate of Compliance from the City Council.

The Owners have submitted the annual monitoring report to the City, and staff has completed its analysis of the information contained in the report. Based on the review of the annual monitoring report, staff has determined that the Owners are in compliance with all of the requirements of the Preserve Development Agreement for the period July 1, 2014 through June 30, 2015. There were two provisions of the Development Agreement that were required to be fulfilled during this time period. They include: 1) payment of $1,100,000 before the first building permit or no later than January 1, 2015 pursuant to Section 3.12(b)(ii) of the DA, which was completed on December 23, 2014; and 2) payment of $1,100,000 within 10 days of final approval of TTM 17574, pursuant to Section 3.12(b)(i) of the DA, which was completed on February 24, 2015.

LOC has requested that the City provide LOC a formal Certificate of Compliance relating to this annual review. A copy of the Annual Monitoring Report is available for review in the City Clerk’s office.

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6.8


Certificate of Compliance 2015 1

RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY OF CHINO PO BOX 667 CHINO, CA 91708-0667 ATTN: COMMUNITY DEVELOPMENT DEPARTMENT

Fee Exempt – Government Code 6103 SPACE ABOVE THIS LINE FOR RECORDER’S USE

CERTIFICATE OF COMPLIANCE FOR

PRESERVE DEVELOPMENT AGREEMENT WHEREAS, the City of Chino (“City”) and Chino Holding Company, Chino Preserve Development Corporation, and Chino Development Corporation (“Owner” of the property) entered into the PRESERVE DEVELOPMENT AGREEMENT (the “Agreement”) on June 1, 2004, effective on July 1, 2004, as Contract No. 2004-073; and WHEREAS, the City Council of the City of Chino approved the Agreement by adoption of Ordinance No. 2004-15 on June 1, 2004; approved the first amendment to the Agreement by adoption of Ordinance No. 2008-15 on December 16, 2008; and approved the second amendment to the Agreement by adoption of Ordinance No. 2014-02; and WHEREAS, the City Clerk of the City of Chino recorded a copy of the Agreement, First Amendment, and Second Amendment with the County Recorder of San Bernardino County as Document Nos. 2004-0428962, 2008-0563617, and 2014-0068048, pursuant to Government Code Section 65868.5, and in accordance with the provisions of the aforementioned Ordinances; and WHEREAS, Owner submitted an annual monitoring report to the City in accordance with Section 11.1 of the Agreement; and WHEREAS, the City Manager submitted a report to the City Council containing the City staff analysis of such annual monitoring report, setting forth the evidence concerning good faith compliance with the terms of the Agreement and recommending findings on that issue; and WHEREAS, on July 21, 2015, the City Council reviewed the Agreement to ascertain the good faith compliance by Owner with the terms of the Agreement, and consistency of the Development during the term of the Agreement with respect to any schedule submitted by Owner for completion

6.8.a

1182 : Lewis Operating Corporation Development Packet Pg. 47

Certificate of Compliance 2015 2

of all development of the Property within the terms of the Agreement, together with the annual monitoring report and report by City staff analyzing said report; and WHEREAS, an Owner has requested the City to issue a Certificate of Agreement Compliance in accordance with Section 11.6 of the Agreement. NOW THEREFORE, the City Council of the City of Chino hereby finds, determines, and declares as follows: SECTION 1.

A. The Owner is in good faith compliance with the Agreement; and

B. Based on the information known or made known to the City Council of the City of Chino after the most recent Annual Review, the Agreement remains in effect; and no Owner is in default; and

C. The anticipated date of commencement of the next Annual Review is July 2016.

SECTION 2.

A. Any Owner may record this Certificate with the County Recorder.

B. Whether or not this Certificate is relied upon by an Owner or an assignee of transferee of an Owner, the City shall not be bound by such a Certificate if a default existed at the time of the Annual Review, but was concealed from or otherwise not known to the City Council of the City of Chino.

CITY OF CHINO By: Dennis R. Yates, Mayor

ATTEST: By: Angela Robles, City Clerk

6.8.a

1182 : Lewis Operating Corporation Development Packet Pg. 48

Revenue: Expenditure: 5207300-43650





TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: AWARD OF CONTRACT - DRINKING WATER ANALYSIS AND RELATED

CONSULTANT SERVICES.

RECOMMENDATION

Award a contract in the amount of $49,927 to Eurofins Eaton Analytical, Inc., Monrovia, CA for drinking water analysis and related consultant services, and authorize the City Manager to execute all necessary documents on behalf of the City.

FISCAL IMPACT

Sufficient funds have been included in Fiscal Year 2015-16 Water Services Operating Budget.

6.9


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: AWARD OF CONTRACT - DRINKING WATER ANALYSIS AND RELATED CONSULTANT SERVICES PAGE 2 BACKGROUND

California drinking water regulations require that the City monitor the quality of the drinking water it distributes to its customers. As part of this water quality monitoring work, the City collects and sends water samples to a State-certified laboratory for analysis and typically enters into a professional services agreement with a laboratory for that purpose.

Professional services agreements with laboratories are established based on staff review of the Request for Proposal (RFP) from qualified laboratories. The selection of a laboratory is based on criteria comprised of nine factors including price, but not solely based on price.

ISSUES/ANALYSIS

On June 12, 2015, Staff issued a Request for Proposal and received five (5) proposals. On June 23, 2015, Staff conducted a proposal opening. Respondents included:

· BSK Associates Engineers & Laboratories

· Eurofins Eaton Analytical, Inc.

· Clinical Laboratory of San Bernardino Inc.

· TestAmerica Laboratories, Inc.

· Truesdail Laboratories, Inc.

Staff evaluated the proposals in accordance with the selection criteria specified in the RFP and determined that the incumbent service provider, Eurofins Eaton Analytical, Inc., Monrovia, CA was the most responsive to the needs of the Water Division.

Their proposal was found to be complete and competitively priced, and based on the superior level of service they provide, it is staff’s recommendation to award a contract for drinking water analysis and related consultant services to Eurofins Eaton Analytical, Inc.

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6.9


Revenue: Expenditure: 3227190-43560-ST121





TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: AWARD OF CONTRACT- PINE AVENUE FLOOD SAFETY GATES PROJECT.

RECOMMENDATION

1) Award a construction contract to AToM Engineering Construction, Inc., Hemet, CA in the amount of $41,398; 2) authorize expenditures of up to $5,000 for project contingencies; and 3) authorize the City Manager to execute the necessary documents on behalf of the City.

FISCAL IMPACT

There are sufficient funds available in the Fiscal Year 2015-16 CIP Budget for this project.

6.10


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: AWARD OF CONTRACT- PINE AVENUE FLOOD SAFETY GATES PROJECT PAGE 2 BACKGROUND

The Pine Avenue Flood Safety Gates project is identified in the City of Chino’s Capital Improvement Program (Project ST121). The flood safety gate installation and detour signage project will provide for the closure and detour of vehicular traffic on Pine Avenue between Fern Avenue and El Prado Road during significant storm events.

Plans and Specifications were prepared and a Notice Inviting Bids was properly advertised. On April 29, 2015 at 10:00 a.m., two (2) bids were received and opened with the following results:

Company Location Bid Amount

AToM Engineering Construction Inc. Hemet $41,398

JM Justus Fence Company Temecula $41,542

ISSUES/ANALYSIS

The low bidder, AToM Engineering Construction Inc. is properly licensed; therefore the firm is deemed to be the lowest responsible bidder with a bid of $41,398. In addition, staff is requesting authorization to spend up to $5,000 for contingencies to fund unanticipated work. This brings the project cost to $46,398.

This project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301(c) of the CEQA Guidelines - Existing Facilities, which includes the operation, repair and maintenance of highways, streets, sidewalks, gutters, bicycle and pedestrian trails, and other similar facilities.

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6.10


Revenue: 5201000-59310 Expenditure:





TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: CELLULAR COMMUNICATIONS LEASE AGREEMENT WITH SBA 2012 TC

ASSETS, LLC.

RECOMMENDATION

1) Approve the Cellular Communications Site Lease Agreement with SBA 2012 TC Assets LLC and authorize the City Manager to execute the necessary documents on behalf of the City.

FISCAL IMPACT

The City's Water Fund will generate approximately $250,000 in revenue over the initial 10-year term of the agreement with SBA 2012 TC Assets LLC.

6.11


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: CELLULAR COMMUNICATIONS LEASE AGREEMENT WITH SBA 2012 TC ASSETS, LLC PAGE 2 BACKGROUND

On October 1, 2002, the City of Chino entered into an agreement with Sprint PCS (Sprint) to lease City-owned property at the Phillips Reservoir Site (5251 Phillips Blvd) for the installation of a cell tower and related telecommunications equipment. Sprint was permitted to attach their antennas to the cell tower and provide wireless coverage to their customers.

In September of 2008, Sprint sold the cell tower to TowerCo Assets LLC (TowerCo) but they maintained ownership of the antennas on the tower. In October of 2012, TowerCo changed its name to SBA 2012 TC Assets, LLC after it was acquired by SBA Communications Corporation (SBA).

In accordance with the agreement, the City receives a lump sum rent payment from the tower owner in advance of every three-year renewal term. The last rent payment received by the City was in the amount of $54,000 for the three-year renewal term ending October 2014. According to ATS Communications, the City’s consultant, the rental payments specified in the agreement are significantly below current market rates.

Over the course of the agreement, the City has issued zoning permits to Clearwire and Metro PCS for the co-location of their antennas on the tower. Although these telecommunication companies each pay a monthly rent to SBA, the terms of the agreement with SBA do not allow the sharing of this revenue with the City of Chino.

ISSUES/ANALYSIS

The City and SBA have been negotiating terms for a new agreement over the past year. Various issues have been discussed and resolved during these recent negotiations, including the following:

· SBA’s annual base rent amount has been increased to $24,000 with a 3% annual escalator, which is comparable to current market rates.

· SBA and the City will share 50% of the monthly rent received by current and future telecommunication companies that have their equipment co-located on the tower. However, rent sharing will not apply to the telecommunication company that’s considered the first tenant on the tower.

· SBA shall contribute $7,500.00 towards security improvements at the property, which will be paid upon full execution of the new agreement.

A draft agreement was submitted to the City Attorney for review and comment. The City Attorney approved the agreement after the requested revisions were incorporated into the document.

6.11


Revenue: Expenditure: 3207100-43640-ST141





TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: REIMBURSEMENT AGREEMENT – HELLMAN AVENUE IMPROVEMENTS.

RECOMMENDATION

Approve a Reimbursement Agreement in the amount of $72,500 with Lennar Homes of California, Inc. for improvements on Hellman Avenue; and authorize the City Manager to execute the necessary documents on behalf of the City.

FISCAL IMPACT

Sufficient funds have been carried over into Fiscal Year 2015-16 and are available in the Capital Improvement Program's Street Rehabilitation Project for Fiscal Year 2013-14.

6.12


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: REIMBURSEMENT AGREEMENT – HELLMAN AVENUE IMPROVEMENTS PAGE 2 BACKGROUND

In conjunction with developments within the limits of City of Eastvale, Lennar Homes of California is required to construct the master planned storm drain improvements within the easterly half of Hellman Avenue from Chandler to six hundred and five feet north of River Road. In a separate agreement, City of Eastvale agreed to reimburse Lennar Homes for reconstruction of the easterly half of the street.

The City of Chino also desires to improve the westerly half of Hellman Avenue within its jurisdiction. Lennar Homes of California agreed to advertise, publicly bid and award a contract in accordance with the State of California Public Contract Code. Additionally, Lennar will ,furnish all equipment and material necessary to perform and complete the public improvements.

ISSUES/ANALYSIS Prior to budget approval, staff anticipated and included this project cost in the 2013-14 Street Rehabilitation to reimburse Lennar Homes of California. Upon completion of this project, the City will reimburse Lennar Homes of California the actual costs for construction which is estimated not to exceed $72,500. The City Attorney has reviewed and approved the agreement.

JA/NI/lm

6.12







TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: REIMBURSEMENT AGREEMENT FOR FUTURE IMPROVEMENTS AT

SHARED INTERSECTIONS - CITY OF ONTARIO FROM MAJESTIC CHINO GATEWAY, LLC.

RECOMMENDATION

1) Approve an appropriation from the unappropriated reserves of the Transportation Fund in the amount of $156,529 with a corresponding year-end transfer in the same amount from the Deposit Account for Future Improvements; 2) approve a reimbursement agreement in the amount of $156,529 to the City of Ontario; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.

FISCAL IMPACT

Requires an appropriation from the unappropriated reserves of the Transportation Fund in the amount of $156,529 with a corresponding year-end transfer in the same amount from the Deposit Account for Future Improvements. The reimbursement to the City of Ontario is completely offset by the Fair Share Traffic Fees collected from Majestic Chino Gateway, LLC.

6.13


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: REIMBURSEMENT AGREEMENT FOR FUTURE IMPROVEMENTS AT SHARED INTERSECTIONS - CITY OF ONTARIO FROM MAJESTIC CHINO GATEWAY, LLC PAGE 2 BACKGROUND

Majestic Chino Gateway, LLC (Majestic) is currently developing the property located at the northwest corner of Kimball Avenue and Euclid Avenue (commonly known as Parcel Map No. 19441), which will include industrial and commercial buildings (“the Project”).

The traffic study for the Project includes an analysis of the impacts to intersections that City of Chino shares with City of Ontario. The traffic study determined that the Project would need to mitigate impacts to the following shared intersections:

· Euclid and Chino Avenues;

· Euclid and Schaefer Avenues; and

· Euclid and Eucalyptus Avenues.

The traffic study also determined that Majestic would mitigate the Project’s impacts to the City of Ontario at these shared intersections with a fair share contribution of $156,529 for the construction of future improvements.

ISSUES/ANALYSIS

The Mitigation Monitoring and Reporting Program (MMRP) in the project’s final EIR includes a provision requiring Majestic to pay $156,529 to City of Chino. In order to satisfy the requirements of the MMRP, the City of Chino would need to transfer these funds to City of Ontario after both cities have accounted for the funding sources needed to construct future improvements at these shared intersections. Both cities have agreed that funds to construct future improvements at these shared intersections may come in part from each City’s respective Development Impact Fee Program.

Majestic has paid $156,529 to fulfill its obligations specified in the MMRP. Upon execution of this Agreement by all Parties, City of Chino shall remit payment in the amount of $156,529 to the City of Ontario upon request. The Agreement has been reviewed and approved by the City Attorney.

JA/JP/lm

6.13







TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: REIMBURSEMENT AGREEMENT FOR FUTURE IMPROVEMENTS AT

SHARED INTERSECTIONS - CITY OF ONTARIO FROM SARES-REGIS.

RECOMMENDATION

1) Approve an appropriation from the unappropriated reserves of the Transportation Fund in the amount of $92,544 with a corresponding year-end transfer in the same amount from the Deposit Account for Future Improvements; 2) Approve a reimbursement agreement in the amount of $92,544 to the City of Ontario; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.

FISCAL IMPACT

Requires an appropriation from the unappropriated reserves of the Transportation Fund in the amount of $92,544 with a corresponding year-end transfer in the same amount from the Deposit Account for Future Improvements. The reimbursement to the City of Ontario is completely offset by the Fair Share Traffic Fees collected from Sares-Regis.

6.14


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: REIMBURSEMENT AGREEMENT FOR FUTURE IMPROVEMENTS AT SHARED INTERSECTIONS - CITY OF ONTARIO FROM SARES-REGIS PAGE 2 BACKGROUND Sares Regis Group (SRG) recently developed the property located near the northwest corner of Pine Avenue and Euclid Avenue (commonly known as Parcel Map No. 18625) into three (3) large industrial buildings (“the Project”). The traffic study for the Project includes an analysis of the impacts to intersections that City of Chino shares with the City of Ontario. The traffic study determined that the Project would need to mitigate impacts to the following shared intersections:

Euclid and Schaefer Avenues;

Euclid and Edison Avenues;

Euclid and Eucalyptus Avenues; and

Euclid and Merrill Avenues. The traffic study also determined that SRG would mitigate the Project’s impacts to the City of Ontario at these shared intersections with a fair share contribution of $92,544 for the construction of future improvements. ISSUES/ANALYSIS The Mitigation Monitoring and Reporting Program (MMRP) in the project’s final Environmental Impact Report includes a provision requiring SRG to pay $92,544 to City of Chino. In order to satisfy the requirements of the MMRP, the City of Chino would need to transfer these funds to City of Ontario after both cities have accounted for the funding sources needed to construct future improvements at these shared intersections. Both cities have agreed that funds to construct future improvements at these shared intersections may come in part from each City’s respective Development Impact Fee Program. SRG has paid $92,544 to fulfill its obligations specified in the MMRP. Upon execution of this Agreement by all Parties, City of Chino shall remit payment in the amount of $92,544 to the City of Ontario upon request. The Agreement has been reviewed and approved by the City Attorney. JA/JP/lm

6.14







TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/PUBLIC WORKS SUBJECT: LANDSCAPE AND STREETLIGHT MAINTENANCE DISTRICTS

ASSESSMENTS FOR FISCAL YEAR 2015-16.

RECOMMENDATION

1) Conduct the public hearing; 2) adopt Resolution No. 2015-049; and 3) direct the City Clerk to file a certified copy of the diagram and assessments with the County Auditor/Controller-Recorder.

FISCAL IMPACT

There are no fiscal impacts to the City by approving Resolution No. 2015-049.

7.15

PUBLIC HEARING Packet Pg. 61

COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: LANDSCAPE AND STREETLIGHT MAINTENANCE DISTRICTS ASSESSMENTS FOR FISCAL YEAR 2015-16 PAGE 2 BACKGROUND

The City has formed six Landscape and Streetlight Maintenance Assessment Districts under the authority of the Landscape and Lighting Act of 1972 of the California Streets and Highways Code. This procedure authorizes the City to recover costs that are incurred in providing landscaping and street lighting maintenance services through a special benefit assessment district procedure.

At the June 16, 2015 City Council meeting, three resolutions were adopted that approved the Engineer’s Report; declared the City’s intention to order improvements; and scheduled a Public Hearing for July 21, 2015.

With the adoption of Proposition 218 in 1996, cities are required to comply with a series of procedural regulations when extending or modifying assessments. In past years, the City opted to cover cost increases for maintaining the districts. By doing so, the City has maintained assessments at the same levels set in 1996, except for District 2002-1, which has cost escalators tied to the Consumer Price Index (CPI).

This year staff is requesting that the County of San Bernardino breakout revenues received in the 83-2 and the 2002-1 Districts to identify which zones have paid their levy. The cost to perform this service from the County is estimated at $26,000, which is a one-time fee. The City’s Finance Department is also breaking out the Lighting and Landscape program from the current 360 Fund and creating its own 361 Fund program to better identify revenues and expenditures for the Fiscal Year 2015-16. However, since costs associated with the operating expense have increased, the level of General Fund subsidy is now at $324,762.81. The increase is due to the rising cost for maintenance services, water rates, electricity, and allocated costs. Proposition 218 mailed ballot election, with majority support would be required for any rate increase to the property owners in the districts.

ISSUES/ANALYSIS

Exhibit 1 presents the actual Fiscal Year 2014-15 assessments and staff’s recommended assessments for Fiscal Year 2015-16. As in the past, the attached rates reflect the City’s contribution for 50 percent of the costs to maintain and light the perimeter common areas at a cost of $301,768.27. The Engineer’s Report which provides the detailed information on all costs used in determining the proposed assessments is on file for review in the Public Works Department.

District 2002-1 has a CPI escalator tied to the Los Angeles and Orange County areas index from January 2014 to January 2015. This year, there is a negative .06 percent CPI for landscape and streetlight maintenance for District 2002-1. Since the CPI escalator was a negative this year it did not apply, leaving the rates the same as last year.

A public hearing is required in order to levy the annual assessments. Pursuant to Section 22629 of the California Streets and Highways Code, all interested persons shall be afforded the opportunity to hear and be heard, and upon the conclusion of the public hearing, Council may order changes in any of the matters provided in the report.

7.15


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: LANDSCAPE AND STREETLIGHT MAINTENANCE DISTRICTS ASSESSMENTS FOR FISCAL YEAR 2015-16 PAGE 3

Resolution No. 2015-049 is attached for Council’s action at the conclusion of the public hearing. If Council approves the resolution, the per-parcel levy schedule will be forwarded to the County Assessor’s office for recordation.

Attachment: Exhibit 1

Resolution No. 2015-049

JA/KP/sm

7.15


EXHIBIT 1

Proposed Rates (Election not required)

CITY OF CHINO

LANDSCAPE AND LIGHTING DISTRICTS COMPARISON OF ANNUAL ASSESSMENT RATES

District

Zone

Tract/ Parcel Map

Parcel Count

2014/15 Per Lot ASMT


75-1 8848 32 $51.27 $51.27

75-2 9013 41 $94.82 $94.82

76-1 9177 38 $95.21 $95.21

76-2 8905* 114 $58.47 $58.47

83-2 A 12334 50 $29.25 $29.25

83-2 B 11586 41 $27.03 $27.03

83-2 C 12265** 240 $18.49 $18.49

83-2 D 10708 43 $19.14 $19.14

83-2 Z-01 12930 83 $45.36 $45.36

83-2 Z-02 13190 83 $68.51 $68.51

83-2 Z-03 12640 75 $19.00 $19.00

83-2 Z-04 12951 21 $11.17 $11.17

83-2 Z-05 11757 21 $14.62 $14.62

83-2 Z-06 12536,37 43 $25.12 $25.12

83-2 Z-07 13330 45 $27.10 $27.10

83-2 Z-08 11111 19 $33.14 $33.14

83-2 Z-09 12950 19 $31.56 $31.56

83-2 Z-11 13056 96 $39.15 $39.15

83-2 Z-12 12538 14 $53.22 $53.22

83-2 Z-13 12539 31 $23.05 $23.05

83-2 Z-14 12584 95 $35.33 $35.33

83-2 Z-15 13194 44 $66.91 $66.91

83-2 Z-16 12585 54 $11.60 $11.60

83-2 Z-17 13119 34 $47.76 $47.76

83-2 Z-18 13795 19 $48.05 $48.05

83-2 Z-19 13054 26 $34.84 $34.84

83-2 Z-20 ALL*** 1227 $175.23 $175.23

83-2 Z-22 13247 18 $11.33 $11.33

7.15.a

1165 : Landscape and Streetlight Maintenance Districts Packet Pg. 64

EXHIBIT 1 Page 2

District

Zone

Tract/ Parcel Map

Parcel Count



83-2 Z-24 13429 20 $90.39 $90.39

83-2 Z-25 11164 23 $41.68 $41.68

83-2 Z-26 12599 1 $50.24 $50.24

83-2 Z-27 11471 14 $16.66 $16.66

83-2 Z-28 11862 1 $110.88 $110.88

83-2 Z-29 8180 7 $56.62 $56.62

83-2 Z-30 12111 8 $40.46 $40.46

83-2 Z-31 12056 2 $75.36 $75.36

83-2 Z-32 10396 3 $83.72 $83.72

83-2 Z-33 10114 1 $498.94 $498.94

83-2 Z-34 12136 4 $96.76 $96.76

83-2 Z-36 12328 2 $126.38 $126.38

83-2 Z-37 11535 5 $70.32 $70.32

83-2 Z-38 12615 1 $249.02 $249.02

83-2 Z-39 13978 65 $34.89 $34.89

83-2 Z-41 14083 128 $67.83 $67.83

83-2 Z-42 11670 2 $58.65 $58.65

83-2 Z-43 12776 2 $37.79 $37.79

83-2 Z-45 11040 6 $41.87 $41.87

83-2 Z-46 12498 4 $213.44 $213.44

83-2 Z-48 13754 10 $17.31 $17.31

83-2 Z-49 558 1 $233.68 $233.68

83-2 Z-50 12502 15 $20.10 $20.10

83-2 Z-51 9491 3 $33.49 $33.49

83-2 Z-52 11589 3 $83.73 $83.73

83-2 Z-53 13219 21 $12.84 $12.84

83-2 Z-54 14317 15 $17.19 $17.19

83-2 Z-55 685 1 $50.24 $50.24

83-2 Z-57 11728 15 $33.81 $33.81

83-2 Z-59 12032-1 7 $44.70 $44.70

83-2 Z-61 13314 4 $110.14 $110.14

83-2 Z-62 11807 4 $28.71 $28.71

83-2 Z-63 607 1 $137.20 $137.20

83-2 Z-64 613 4 $234.61 $234.61

83-2 Z-65 627 1 $63.18 $63.18

7.15.a


EXHIBIT 1 Page 3

District

Zone

Tract/ Parcel Map

Parcel Count



83-2 Z-67 14236-1 6 $73.64 $73.64

83-2 Z-69 14373 8 $99.49 $99.49

83-2 Z-70 13416 12 $8.37 $8.37

83-2 Z-74 13697 49 $212.90 $212.90

83-2 Z-76 669 1 $200.95 $200.95

83-2 Z-78 13684 2 $62.87 $62.87

83-2 Z-79 14017 16 $12.56 $12.56

83-2 Z-80 13280/10494 34 $420.30 $420.30

83-2 Z-82 12715 38 $66.18 $66.18

83-2 Z-86 204R 2 $103.48 $103.48

83-2 Z-87 13846 2 $286.92 $286.92

83-2 Z-88 12032-2 8 $12.62 $12.62

83-2 Z-89 684 1 $222.06 $222.06

83-2 Z-90 11804 3 $165.68 $165.68

83-2 Z-91 14836 1 $168.40 $168.40

83-2 Z-93 739 5 $50.48 $50.48

83-2 Z-94 14889 2 $34.54 $34.54

83-2 Z-95 9604 8 $43.39 $43.39

83-2 Z-96 14896 3 $106.62 $106.62

83-2 Z-97 728 2 $92.60 $92.60

83-2 Z-98 15687-1&2 83 $63.25 $63.25

83-2 Z-99 14980 2 $66.83 $66.83

83-2 Z-100 15071 6 $122.42 $122.42

83-2 Z-101 SA731 2 $61.96 $61.96

83-2 Z-102 15687 & 3 88 $91.96 $91.96

83-2 Z-103 15787 14 $332.60 $332.60

83-2 Z-104 SA96-12 1 $100.25 $100.25

83-2 Z-105 14882 5 $30.94 $30.94

83-2 Z-106 15180 1 $57.86 $57.86

83-2 Z-107 SA97-12 1 $65.85 $65.85

83-2 Z-108 14990 3 $2277.53 $2277.53

83-2 Z-109 14963 6 $233.92 $233.92

83-2 Z-110 15241 4 $8.62 $8.62

83-2 Z-111 15199 3 $143.14 $143.14

83-2 Z-112 15919-1 61 $199.82 $199.82

7.15.a


EXHIBIT 1 Page 4

District

Zone

Tract/ Parcel Map

Parcel Count



83-2 Z-113 15919 61 $229.24 $229.24

83-2 Z-114 14387 64 $303.43 $303.43

83-2 Z-115 15904 38 $110.58 $110.58

83-2 Z-117 15274 24 $58.29 $58.29

83-2 Z-118 SCUP99-04 1 $103.30 $103.30

83-2 Z-119A 15324 10 $4.98 $4.98

83-2 Z-120 SCUP694(R1) 2 $86.79 $86.79

83-2 Z-121 SA98-26 1 $152.49 $152.49

83-2 Z-122 15305 5 $182.34 $182.34

83-2 Z-123 15285 2 $39.38 $39.38

83-2 Z-124 SA99-03 2 $19.69 $19.69

83-2 Z-125 SA98-14 3 $33.17 $33.17

83-2 Z-126 15441 3 $49.76 $49.76

83-2 Z-127 14905 13 $18.42 $18.42

83-2 Z-128 16056 147 $26.07 $26.07

83-2 Z-129 15381 15 $18.31 $18.31

83-2 Z-130 15983 65 $413.74 $413.74

83-2 Z-131 14812 19 $22.73 $22.73

83-2 Z-132 15585 3 $227.18 $227.18

83-2 Z-133 15500 3 $21.95 $21.95

*Plus 8992 & 9089 **12266, 12267, 12268, 12269, 12271, 12272, & 12274 ***Plus 11789, 13182, 13637, 13638, 13658, 13734, 13755, 13785-1, 13785-2, 13786, 13791, 13803, 13861, 14076, 15671, & SCUP 567

TOTAL PROPOSED ASSESSMENT FOR FISCAL YEAR 2015-16: $437,205.75

7.15.a


EXHIBIT 1 Page 5

Proposed Rates (Election not required)

CITY OF CHINO LANDSCAPE AND LIGHTING DISTRICTS

COMPARISON OF ANNUAL ASSESSMENT RATES ASSESSMENT DISTRICT

2002-1

District

Zone

Tract/ Parcel Map

Parcel Count



2002-1 1 16140 82 $ 65.40 $ 65.40

2002-1 2 15238-1 4 $ 671.79 $ 671.79

2002-1 3 16246 121 $ 84.98 $ 84.98

2002-1 4 16154 19 $ 181.88 $ 181.88

2002-1 5 15681 15 $ 11.21 $ 11.21

2002-1 6 16196 19 $ 92.37 $ 92.37

2002-1 7 16336 19 $ 27.74 $ 27.74

2002-1 8 15845 4 $ 559.64 $ 559.64

2002-1 9 16017 23 $ 607.09 $ 607.09

2002-1 10 15808 11 $ 64.62 $ 64.62

2002-1 11 SA2002-08 2 $ 770.46 $ 770.46

2002-1 12 16245-1-2 238 $ 214.71 $ 214.71

2002-1 13 15957 17 $ 29.36 $ 29.36

2002-1 14 15759 6 $ 38.80 $ 38.80

2002-1 15 16143 8 $ 93.85 $ 93.85

2002-1 16 16343 11 $ 94.68 $ 94.68

2002-1 17 16354 18 $ 485.47 $ 485.47

2002-1 18 16248 308 $ 31.83 $ 31.83

2002-1 19 16157 1 $ 2,087.32 $ 2,087.32

2002-1 20 15980 14 $ 25.40 $ 25.40

2002-1 21 16212 2 $ 130.24 $ 130.24

2002-1 22 16030 15 $ 43.61 $ 43.61

2002-1 23 16069 19 $ 16.37 $ 16.37

2002-1 24 16366 14 $ 49.40 $ 49.40

2002-1 26 SA2003-01 1 $ 40.46 $ 40.46

2002-1 27 16436 17 $ 158.60 $ 158.60

2002-1 28 16233 9 $ 73.70 $ 73.70

2002-1 29 16451 22 $ 70.18 $ 70.18

2002-1 30 16122 4 $ 124.57 $ 124.57

7.15.a


EXHIBIT 1 Page 6

District

Zone

Tract/ Parcel Map

Parcel Count



2002-1 31 16364 10 $ 44.43 $ 44.43

2002-1 32 16381 17 $ 91.97 $ 91.97

2002-1 33 SA2003-12 1 $ 446.41 $ 446.41

2002-1 34 SA2002-23 1 $ 1,238.28 $ 1,238.28

2002-1 37 16383 11 $ 115.37 $ 115.37

2002-1 38 16547 10 $ 39.36 $ 39.36

2002-1 39 SA2003-10 3 $ 527.27 $ 527.27

2002-1 40 16931 11 $ 86.43 $ 86.43

2002-1 42 16974 42 $ 17.11 $ 17.11

2002-1 43 16956 7 $ 118.25 $ 118.25

2002-1 44 17249 31 $ 25.55 $ 25.55

2002-1 45 16381-1 16 $ 135.57 $ 135.57

2002-1 48 17469 8 $ 123.65 $ 123.65

2002-1 49 17476 4 $ 72.27 $ 72.27

2002-1 50 17819 8 $ 115.22 $ 115.22

2002-1 51 17798 23 $ 10.62 $ 10.62

2002-1 52 SA2006-10 2 $ 332.70 $ 332.70

2002-1 53 2004-22 1 $ 258.22 $ 258.22

2002-1 54 2004-40 1 $ 233.26 $ 233.26

2002-1 55 SA2005-36 1 $ 602.71 $ 602.71

2002-1 56 17592 10 $ 165.79 $ 165.79

2002-1 59 PL08-0160 1 $ 275.91 $ 275.91

TOTAL PROPOSED ASSESSMENT FOR FISCAL YEAR 2015-16: $143,630.64

7.15.a


RESOLUTION NO. 2015-049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, LEVYING ASSESSMENTS FOR FISCAL YEAR 2015-16 FOR ASSESSMENT DISTRICTS 75-1, 75-2, 76-1, 76-2, 83-2, AND 2002-1, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972. WHEREAS, pursuant to Chapter 3 of the Landscaping and Lighting Act of 1972, the City

Council directed the City Engineer, the Engineer of Work for Assessment Districts 75-1, 75-2, 76-1, 76-2, 83-2, and 2002-1, to prepare and file an annual report for Fiscal Year 2015-16; and

WHEREAS, the Engineer of Work filed the annual report on June 16, 2015, and the City Council adopted its resolution of intention to levy and collect assessments within the assessment districts for Fiscal Year 2015-16; and

WHEREAS, the City Council set a date for a public hearing, to be held on July 21, 2015, at 7:00 p.m., in the City Council Chambers, 13220 Central Avenue, Chino, California; and

WHEREAS, at said public hearing, the City Council afforded to every interested person an opportunity to make a protest to the annual report, either in writing or orally, and the City Council considered each protest.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO DOES HEREBY RESOLVE that it confirms the assessment as set forth in the annual report of the Engineer of Work and levies the assessments set forth therein for Fiscal Year 2015-16. APPROVED AND ADOPTED THIS 21st DAY OF JULY 2015.

______________________________

DENNIS R. YATES, MAYOR ATTEST: ____________________________ ANGELA ROBLES, CITY CLERK

7.15.b


RESOLUTION NO. 2015-049 PAGE 2

State of California ) County of San Bernardino )§ City of Chino ) I, Angela Robles, City Clerk of the City of Chino, do hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting held on the 21st day of July 2015, by the following votes: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ____________________________ ANGELA ROBLES, CITY CLERK

7.15.b





FINANCE DEPARTMENT


TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: ROB BURNS, DIRECTOR OF FINANCE SUBJECT: APPROVAL OF BOND DOCUMENTS FOR SPECIAL TAX BONDS FOR

COMMUNITY FACILITIES DISTRICT NO. 2003-3 IMPROVEMENT AREA NO. 6.

RECOMMENDATION

Adopt Resolution No. 2015-048 of the City Council of the City of Chino, acting as the legislative body for Community Facilities District No. 2003-3 Improvement Area No. 6 of the City of Chino (the “District”), approving the substantially final forms of the Preliminary Official Statement, Absorption Study, and property appraisal (collectively, the “Bond Documents”).

FISCAL IMPACT

The Preliminary Official Statement relates to limited obligation special tax bonds (the “Bonds”) of the District, the issuance of which were approved on May 19, 2015 by the City Council. The Bonds will be special obligations of the District, payable solely from special taxes levied on the taxable property within Improvement Area No. 6 of the District, and amounts held by the Fiscal Agent under the Fiscal Agent Agreement. No City of Chino funds are pledged to the repayment of the Bonds.

8.16

NEW BUSINESS Packet Pg. 72

COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: APPROVAL OF BOND DOCUMENTS FOR SPECIAL TAX BONDS FOR COMMUNITY FACILITIES DISTRICT NO. 2003-3 IMPROVEMENT AREA NO. 6 PAGE 2 BACKGROUND

Lewis Operating Corporation (Lewis) is the primary land developer in The Preserve. Lewis is currently developing their land with residential, commercial and community facilities. As part of the development of The Preserve, the City of Chino is requiring Lewis to build the necessary public infrastructure to serve the residents and businesses of The Preserve. In order to help Lewis finance the cost of the required infrastructure improvements, the City formed Community Facilities District (CFD) No. 2003-03 which was designed to utilize Improvement Areas to issue bonds as The Preserve developed.

On December 17, 2013, the City Council adopted Resolution No. 2013-071, declaring the City of Chino’s Intention to Incur Bonded Indebtedness for the proposed Improvement Area 6 of the Community Facilities District No. 2003-3, and on January 7, 2014, the City held the Public Hearing for formation of Improvement Area No. 6. On May 19, 2015, City Council approved the issuance of the bonds and the substantially final forms of the Fiscal Agent Agreement, Bond Purchase Agreement, and Continuing Disclosure Agreement.

Lewis is now ready for the District to issue special tax bonds for Improvement Area No. 6 pursuant to the terms of the Bond Documents in order to finance the infrastructure cost relating to the project.

ISSUES/ANALYSIS

Staff has retained O’Connor & Company Securities as the City’s financial advisor; Stifel, Nicolaus & Company, Inc., as the underwriter; Albert A. Webb Associates as the special tax consultant; BTI Appraisal for the appraiser and the absorption study; BNY Mellon as the fiscal agent; and the law firm of Stradling, Yocca, Carlson & Rauth as bond and disclosure counsel. The financing team has prepared the necessary documents to implement the issuance of the special tax bonds of the District for Improvement Area No. 6.

The following documents have been prepared for the District’s approval and are available for review in the Finance Department:

1. Resolution of the City Council of the City of Chino, acting as the legislative body of Community Facilities District No. 2003-3 of the City of Chino, authorizing the preparation and distribution of a Preliminary Official Statement for Improvement Area No. 6, and taking certain other actions in connection therewith;

2. The Preliminary Official Statement (P.O.S.) will serve as the District’s disclosure document, which summarizes the legal documents and discloses relevant financial and demographic information relating to the District. The underwriter will use the P.O.S. to generate investor interest in the Bonds.

8.16


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: APPROVAL OF BOND DOCUMENTS FOR SPECIAL TAX BONDS FOR COMMUNITY FACILITIES DISTRICT NO. 2003-3 IMPROVEMENT AREA NO. 6 PAGE 3

3. An appraisal of property located within Improvement Area No. 6, prepared by BTI Appraisal.

4. An absorption study of the proposed development located within Improvement Area 6, prepared by BTI Appraisal.

Copies of these documents are available for review in the Finance Department. It is anticipated the Bonds will be sold in July with the final closing in August of this year.

RB:hm

Attachment: Exhibit 1 - Boundary Map

Resolution No. 2015-048

8.16


8.16.a

1152 : CFD 2003-3 IA6 Bond Document Packet Pg. 75


RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO, AUTHORIZING THE PREPARATION AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT FOR IMPROVEMENT AREA NO. 6 THEREIN, AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH

WHEREAS, the City Council (the “City Council,” and sometimes referred to as the “legislative body of the District”) of the City of Chino, California (the “City”), located in San Bernardino County, California, has heretofore undertaken proceedings and declared the necessity to issue bonds by Community Facilities District No. 2003-3 of the City of Chino (the “District”) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and

WHEREAS, the legislative body of the District previously adopted Resolution No. 2015-023 on May 19, 2015 (the “Resolution of Issuance”) which approved the issuance of bonds in an aggregate principal amount not to exceed $15,000,000 designated as the “Community Facilities District No. 2003-3 of the City of Chino Improvement Area No. 6 2015 Special Tax Bonds” (the “Bonds”) under the Act and authorized the execution and delivery of certain documents in connection therewith; and

WHEREAS, as a condition precedent to the issuance of the Bonds, the Resolution of Issuance required that the legislative body of the District approve a preliminary official statement for the Bonds, in substantially final form at a subsequent meeting; and

WHEREAS, the District now desires to approve and authorize the preparation and distribution of a Preliminary Official Statement (the “Preliminary Official Statement”) and a final Official Statement (the “Official Statement”) in connection with the Bonds; and

WHEREAS, in accordance with the requirements of Section 53345.8 of the Act and the policies of the City, the Resolution of Issuance established as a condition precedent to the sale and issuance of the Bonds that the legislative body of the District determine that the value of the real property in Improvement Area No. 6 of the District (“Improvement Area No. 6”) subject to the special tax to pay debt service on the Bonds (the “Taxable Property”) be at least four times the principal amount of the Bonds and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District; and

WHEREAS, the Resolution of Issuance directed BTI Appraisal, a state-certified real estate appraiser as defined in Section 11340 of the California Business and Professions Code, to prepare an appraisal of the Taxable Property (the “Appraisal”); and

WHEREAS, the Appraisal states that the appraised value of the Taxable Property is $50,866,834 (the “Appraised Value”), which is not less than three times the sum of the maximum principal amount of the Bonds ($15,000,000) plus the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act on the Taxable Property

8.16.b


2

or a special assessment levied on the Taxable Property ($0) (the “Overlapping Land Secured Debt”); and

WHEREAS, the City’s Local Goals and Policies setting forth the parameters for City’ formed community facilities district bonds provides that the Taxable Property’s value-to-lien ratio based on the Appraised Value and the maximum principal amount of the Bonds and all overlapping Land Secured Debt should be at least 4-to-1, provided, however, that the ratio may be less than 4-to-1 but not less than 3-to-1 if the less than 4-to-1 ratio is recommended by Stifel, Nicolaus & Company, Incorporated, the underwriter of the Bonds, and/or O’Connor & Company Securities, financial advisor to the City (the “Financial Advisor”) and if the City finds a reduced ratio to be within acceptable parameters and industry practice; and

WHEREAS, the Financial Advisor has recommended the less than 4-to-1 ratio for the Bonds and the City hereby finds the reduced value-to-lien ratio to be within acceptable parameters and industry practice;

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO, AS FOLLOWS:

1. Each of the above recitals is true and correct, as is each of the findings and determinations set forth therein, and each of said recitals, findings and determinations is adopted by the legislative body of the District.

2. The Preliminary Official Statement, in substantially the form presented to this meeting and made a part hereof is hereby approved, with such changes, insertions and omissions therein as may be approved by the Mayor, City Manager or Director of Finance of the City (collectively, the “Authorized Officers”), and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved. The Authorized Officers are each hereby authorized to certify on behalf of the District that the Preliminary Official Statement is deemed final as of its date, within the meaning of Rule 15c2-12 (except for the omission of certain final pricing, rating and related information as permitted by Rule 15c2-12).

3. The preparation and delivery of the Official Statement, and its use in connection with the offering and sale of the Bonds is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the District, to execute the final Official Statement and any amendment or supplement thereto.

4. The Mayor, City Manager, Director of Finance and the officers and staff of the City and the District who are responsible for the fiscal affairs of the District are hereby authorized and directed to take any actions and to execute and deliver any and all documents as are necessary to accomplish the issuance, sale and delivery of the Bonds in accordance with the provisions of this Resolution and the Resolution of Issuance including, but not limited to, providing certificates as to the accuracy of any information relating to the District which is included in the Official Statement.

8.16.b


3

PASSED AND ADOPTED by the City Council at a regular meeting held on the 21st day of July 2015.

CITY COUNCIL OF THE CITY OF CHINO

By:_______________________________ Dennis R. Yates, Mayor of the City of Chino

ATTEST:

________________________________ Angela Robles City Clerk of the City of Chino

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )ss.

CITY OF CHINO ) I, ANGELA ROBLES, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Chino at a regular meeting held on the 21st day of July 2015, by the following votes: AYES: COUNCIL MEMBERS NOES: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS

ANGELA ROBLES, CITY CLERK

8.16.b





FINANCE DEPARTMENT


TO: MATTHEW C. BALLANTYNE, CITY MANAGER FROM: ROB BURNS, DIRECTOR OF FINANCE SUBJECT: UTILITY RATE STRUCTURE ANALYSIS.

RECOMMENDATION

Adopt Resolution No. 2015-052, calling a special notice proceeding and setting time and place for the public hearing on rates, fees, and charges for water, sanitary sewer, street sweeping, and refuse and recycling services.

FISCAL IMPACT

Raising the utility rates will provide adequate revenues to ensure that the physical integrity of utility systems are properly maintained.

8.17


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: UTILITY RATE STRUCTURE ANALYSIS PAGE 2 BACKGROUND Per the City of Chino Municipal Code, staff is required to review the condition of the enterprise funds, related capital projects, and the rates charged to our customers every five years under the adopted rate model, and present an analysis for City Council consideration. In February of this year, the City Council authorized staff to utilize Raftelis Financial Consultants, Inc. (Raftelis) to perform a Five-Year Rate Analysis for the Water and Sewer rates. This analysis provided a comprehensive review of all regulatory and operating requirements, including such items as: 1) a long-range infrastructure replacement program; 2) establishment of adequate operating and capital reserves; 3) a review of existing and available rate structures; and 4) recommendations of alternative rate structures. Additionally, staff reviewed rates for Refuse Collection and Street Sweeping to assess the adequacy of the revenues to maintain the physical integrity of these systems and to comply with all required health standards. These reviews indicate that adjustments to the current rate structures are necessary in order to achieve the goals as outlined in the preceding paragraph. In order to implement these rate adjustments, the City is required to meet specific noticing requirements under the provisions of Proposition 218. Staff has met with the City Attorney to ensure all of the latest provisions of Proposition 218 are complied with during this proposed rate adjustment. The following actions are required in order to facilitate the proposed utility rate structure being recommended by staff: 1. The City must notify rate payers of the proposed rate structure as well as the date, time,

and location of the public hearing on the proposed rate structure. 2. The City must hold a public hearing on the proposed rate structure not less than 45-days

after the notice to the rate payers. 3. At the public hearing, the City must consider all written protests against the proposed

rate structure. 4. If the City receives a majority of all existing customers submitting a written protest

against the proposed rate structure, the City may not impose the rate structure. ISSUES/ANALYSIS The rate structure shown in the Public Notice (Exhibit A) is the result of the following review: Water Utility System Raftelis has completed a thorough review of the operating and financial operations of the City's water system. Raftelis' first recommendation is that the City's water rates be increased to generate an additional 5.0% of overall revenue each year with an additional increases of 5.0% for year two. Secondly, Rafetlis is recommending that the City's water rates be restructured in such a way that the revenues generated from the water rates are more in line with individual cost of service components. The recommendation of a 5.0% overall rate increase is relatively low in this current water service environment. The main reason that the rate increase is only 5.0% is that the City's General Fund has made some major monetary contributions to assist the water fund operations in order to ensure that City residents and business' have a reliable and quality source of water supply. The City's General Fund made three major contributions to the Water Fund in FY 2014-15; first, $2 million dollars was committed for currently needed infrastructure repairs; second, a

8.17


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: UTILITY RATE STRUCTURE ANALYSIS PAGE 3 transfer of $4.1 million was made to bolster Capital Replacement Reserves to allow for an ongoing capital replacement plan that will target about $2.8 million a year over the next five years; finally, the General Fund loaned $3.5 million to the water fund to assist with a conversion to a fixed antenna meter reading system. This system will increase the efficiency of the reading process and has a positive return on investment. Without these General Fund contributions, the proposed rate increase would have been 2 to 3% higher. Additionally, Raftelis is recommending that the City's current rate structure be changed. Being proposed are reductions in the monthly standby charge ranging from reductions of 21% to 56%, depending on meter size. At the same time, an offsetting increase of 45% is proposed for the consumption charge, bringing the consumption charge to $2.64 per unit. These proposed changes provide a direct relationship between the cost of the service being provided, i.e, fixed charges pay for fixed costs and variable charges pay for variable costs. The impact of these changes varies depending on the customer's meter size and water consumption. It is anticipated that residential customers that use eight or fewer units of water per month will see only a 2% increase in costs. Residential customer that use larger amounts of water will see their monthly costs increase 10% and more depending on the amount of water they use. This is due to the higher per unit consumption charge of $2.64 per unit of water. This higher unit cost provides for fair and equitable rates, in that users pay in proportion to the cost of the service being provided. The higher unit cost means that those that use larger quantities of water pay more of their fair share. This higher unit rate also incentivizes customers to reduce water consumption which is very important during drought conditions. Sanitary Sewer System A review of the Sewer Fund has determined that a rate restructuring is needed in order to generate sufficient ongoing revenues to maintain the physical integrity of the sanitary sewer system. It is recommended that the sanitary sewer rate be increased by $1.95 per Equivalent Dwelling Unit for FY 2016 and $1.76 per Equivalent Dwelling Unit for FY 2017. These increases will provide sufficient revenues to cover approximately $1.2 million a year in needed infrastructure repairs. These repairs were originally going to be funded with approximately $4 million in RDA promissory notes repayments; however, the Department of Finance is currently proposing legislation that would retroactively change existing law and disallow these repayments. IEUA Sanitary Sewage Treatment Charge The City of Chino contracts with the Inland Empire Utilities Agency (IEUA) for sanitary sewage treatment services. IEUA has notified the City of Chino the sanitary sewage treatment fee will be adjusted up to $15.89 per Equivalent Dwelling Unit on October 1, 2015 with additional increases each of the next four years effective July 1 of that year. Per Chino Municipal Code Section 13.16.042, the City is required to pass this fee on to its customers effective the same date the IEUA Board makes the rate effective. Waste Management Refuse and Recycling Charge The City of Chino contracts with Waste Management, Inc. (WM) for refuse and recycling services. As allowed under the current contract, WM submitted its Annual Rate Adjustment Request for Fiscal Year 2016. The allowable increase for FY 2016 is 0.73% based on the annual monthly averages of the Consumer Price Index for December to December. The 0.73% CPI increase will be applied to all services provided by WM including the landfill tipping fee for El Sobrante Landfill, effective July 1, 2015. The 5% increase "estimate" for the second year, is

8.17


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: UTILITY RATE STRUCTURE ANALYSIS PAGE 4 the maximum increase allowed under the current contract; however, the actual increase will be based on the CPI when it becomes available in February 2016. Several years ago, the cost for disposal that was passed on to customers for Single Family Residential services, was reduced by $4 dollars per month to decrease the accumulated fund balance in the Sanitation Fund. Over the last two-years, this charge was increased by one dollar each year, thereby recapturing one-half of the decrease. Now that the fund balance is at a low level, the Sanitation Fund can no longer augment costs for disposal. Therefore, the landfill disposal charge for Residential Single-Family rate will increase for FY 2016 by $1.72 and another 5% for FY 2017. Therefore, the new monthly Residential Family disposal rate is $24.12 for FY 2016 and $25.33 for FY 2017. Street Sweeping Charge For the past several years, the cost to provide street sweeping has exceeded the revenue generated by the Street Sweeping charge. Staff reviewed the street sweeping operation as part of the FY 2015-16 budget process and decided to reduce operating costs by contracting out the street sweeping service. While this is projected to reduce the costs of the street sweeping operation, the City's current charge for this service will still not generate enough revenue to cover all the operating costs. Therefore, it is recommended that the street sweeping rates be increased. With these increases, a single family residential house would experience an increase of 65 cents per month in FY 2016 and an additional 39 cents per month in FY 2017. Future Water Budget Based Water Rate Structure Recently staff was given direction by Infrastructure Committee to begin to move towards a Budget Based Water Rate structure. Budget Based Rates are designed to promote efficient water use for all levels of water users. This system is not designed to simply recover costs but to optimize a blend of various utility objectives, such as affordability for essential water needs, fairness and equity as well as revenue sufficiency and stability. With these objectives in mind, staff will begin the process to implement this new rate structure by July of 2017. CONCLUSION The overall impact of this rate restructuring on the average Chino residential utility customer will be an increase in their utility bill of $14.91 per month during the first year, and $7.89 per month during the second year. An average residential utility customer is based on 16 units of water (a unit of water equals 748 gallons). Exhibit A shows the proposed rate changes to become effective October 1, 2015 and July 1, 2016. Due to changing dynamics, such as the California drought and supplier cost increases, staff is recommending rate adjustments for City controlled charges be set for two years. Additionally, the Sewage Treatment pass-through charges for IEUA are being established for five years consistent with IEUA's approved rates. Upon approval of the proposed rate adjustments, staff will begin the steps necessary to comply with the provisions of Proposition 218. In order to inform the rate payers of the proposed rate adjustments, staff will mail to all rate payers a Notice of Public Hearing (Exhibit A), stating the proposed rates, and the date, time, and place of the public hearing.

8.17


COUNCIL MEETING DATE: JULY 21, 2015 SUBJECT: UTILITY RATE STRUCTURE ANALYSIS PAGE 5 It is staff's recommendation the City Council adopt Resolution No. 2015-052, calling a special notice proceeding and setting the time and place for the public hearing on rates, fees, and charges for water, sanitary sewer, street sweeping, and refuse and recycling services. RB:hm Attachments: Exhibit A Exhibit B - Water & Wastewater Rate Study Executive Summary Resolution No. 2015-052

8.17


8.17.a

1181 : Utility Rate Structure Analysis Packet Pg. 84

8.17.a


Financial Plan and Water and Wastewater Cost of Service Study | 1

EXECUTIVE SUMMARY

The City of Chino (City) engaged Raftelis Financial Consultants, Inc. (RFC) to conduct a

comprehensive financial plan over the planning period from fiscal years (FY) 2016 to

2025 and develop cost of service water and wastewater rates for implementation in FY

2016 through FY 2020. The rate study process was conducted in conjunction with input

from City staff and City Council. This report documents the resultant findings, analyses,

and proposed changes that were developed with input from and approved by City staff.

The major objectives of the study include the following:

1. Ensure Revenue Sufficiency to meet the operation and maintenance (O&M) and capital needs

of the City’s water and wastewater utilities.

2. Ensure that rates are Fair and Equitable and are based on Cost of Service guidelines used in

the industry.

3. Plan for Rate and Revenue Stability to prevent rate spikes and provide for adequate operating

and capital reserves and the overall financial health of the water and wastewater utilities

under varying conditions.

This executive summary provides an overview of the study and includes findings and

recommendations for both water and wastewater rates.

The remainder of the report defines a unit of water as a hundred cubic feet (HCF or hcf). A hundred

cubic feet of water equals 748 gallons. Also, a fiscal year (FY) for the City is from July 1 to June 30 the

following year. Therefore, July 1, 2014 through June 30, 2015 is identified as FY 2015; July 1, 2015

through June 30, 2016 is identified as FY 2016 and so on.

Exhibit B 8.17.b


2 | City of Chino

WATER UTILITY

System Background

The water utility provides service to over 19,200 customer accounts in a service area of over 30

square miles. The City owns and operates 265 miles of transmission and distribution pipelines, 4

reservoirs, and 3 pump stations. Water is supplied through three main sources: local groundwater

and purchased water from the Water Facilities Authority (WFA) and the Chino Basin Desalter

Authority (CDA). The City also purchases recycled water from the Inland Empire Utilities Agency

(IEUA) for sale and for recharge purposes. The cost of water supply has increased in the last several

years due to continued years of drought, tightening water supplies and environmental and regulatory

requirements.

Financial Plan

In order to determine the revenue adjustments needed to meet the ongoing expenses of the City and

provide fiscal stability, RFC projected the revenue requirements, including operations and

maintenance (O&M) expenses, capital improvement expenses, debt service costs, reserve

requirements, etc., for the study period from FY 2016 to 2025. O&M expenses include the cost of

operating and maintaining water supply, treatment, storage, and distribution facilities, as well as the

costs of providing technical services such as engineering services and other administrative costs of

the water system such as meter reading and billing. O&M projections are based on the City’s FY 2016

budget using an inflationary factor of three percent per year starting in FY 2016 to project all O&M

expenditures, except benefits and utilities. Benefits are projected to increase at five percent per year

and utilities (mostly power) expenses are projected to increase at four percent per year during the

study period. Figure 1 shows the projected water O&M expenses over the planning period.

Figure 1: Projected O&M Expenses – Water

$0

$5

$10

$15

$20

$25

$30

$35

FY 2016 FY 2018 FY 2020 FY 2022 FY 2024

Mill

ion

s

Projected O&M Expenses

Water Billing Water Services Purchased Water Water Capital Program

8.17.b



In addition to the operating expenses, the City is planning significant capital expenditures over the

next ten years. Due to the size of the total Capital Improvement Program (CIP) – $30.1 million over

the next ten years (FY 2016 to 2025) – the City is borrowing $3.5 million from the General Fund in

FY 2016, to be paid back over a 10-year period at a three percent interest rate. Existing and

anticipated annual debt service payments range from $0.4 to $0.8 million over the planning period.

Figure 2 shows the water CIP funding plan over the planning period.

Due to the current drought and ongoing conservation efforts, potable water usage is projected to

decrease by 15 percent in FY 2016 and FY 2017, compared to FY 2015, and gradually increase over

the subsequent two years before stabilizing in FY 2020. The projected decrease in usage is offset by

projected increases usage from growth in single family residential accounts of three percent per year

until FY 2020. All other customer classes are projected to remain at current levels.

Figure 2: Capital Financing Plan – Water

To ensure that the City will have adequate revenues to fund water operating and capital expenses

and to maintain sufficient reserves, RFC recommends the revenue adjustments in Table 1. These

increases are needed to finance the capital and inflationary expenses.

Table 1: Annual Revenue Increases – Water

Effective Date Increases

October 1, 2015 5.0%

October 1, 2016 5.0%

October 1, 2017 5.0%

October 1, 2018 5.0%

October 1, 2019 5.0%

$7.3

$2.3$3.0

$2.5$2.8

$3.3 $3.3 $3.4 $3.6 $3.7

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

FY 2016 FY 2018 FY 2020 FY 2022 FY 2024

Mill

ion

s

Capital Financing Plan

Debt Funded CIP Rate Funded CIP

8.17.b


4 | City of Chino

Figure 3 shows the resulting fund balance for the water utility. The red line represents the total

target, which is composed of operating, capital, and rate stabilization reserves targets consistent with

industry standards. The operating reserve target is set at 25 percent of the operating expenses to

provide working capital and unanticipated operating expenses; the capital reserve target is set at 100

percent of average annual capital expenditures to provide funds for capital projects; and the rate

stabilization target is set at 10 percent of total rate revenue to mitigate against rate spikes from

unforeseen changes to expenses and revenues.

Figure 3: Fund Balance – Water

Cost of Service Analysis and Rate Design

To calculate fair and equitable rates so that users pay in proportion to the cost of providing service,

RFC performed a cost allocation of the total revenue requirements consistent with industry

standards. The cost of service allocation is based on the Base-Extra Capacity Method described in the

American Water Works Association (AWWA) Manual M1. Under this method, costs are apportioned

amongst various cost parameters to determine the costs to provide service under average conditions,

meet peaking requirements, provide meter capacity and provide customer service. Costs to serve

different customer classes are determined; rates are then designed to recover the costs equitably

consistent with Proposition 218 requirements.

Proposed Water Rates

RFC recommends that the City retains its current rate structure. However, the rates are revised to

be more consistent with cost of service. Table 2 shows the proposed rates for the next five years.

These rates are effective in October of each year.

$0

$2

$4

$6

$8

$10

$12

$14

$16

FY 2016 FY 2018 FY 2020 FY 2022 FY 2024

Mill

ion

s

Fund Balances

Total Funds Total Target

8.17.b



Table 2: Proposed Monthly Water Rates

Current FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Monthly Readiness-to-Serve Charge

Meter Size

5/8" & 3/4" $29.52 $23.43 $24.61 $25.85 $27.15 $28.51

1" $52.47 $36.33 $38.15 $40.06 $42.07 $44.18

1 1/2" $118.06 $68.59 $72.02 $75.63 $79.42 $83.40

2" $209.88 $107.29 $112.66 $118.30 $124.22 $130.44

3" $472.24 $229.87 $241.37 $253.44 $266.12 $279.43

4" $839.55 $410.50 $431.03 $452.59 $475.22 $498.99

6" $1,888.96 $842.72 $884.86 $929.11 $975.57 $1,024.35

8" $3,358.16 $1,552.34 $1,629.96 $1,711.46 $1,797.04 $1,886.90

10" $5,247.13 $2,455.50 $2,578.28 $2,707.20 $2,842.56 $2,984.69

Monthly Fire Service Charge

Meter Size

2" $10.45 $8.42 $8.85 $9.30 $9.77 $10.26

3" $23.50 $16.70 $17.54 $18.42 $19.35 $20.32

4" $41.77 $30.98 $32.53 $34.16 $35.87 $37.67

6" $94.02 $82.23 $86.35 $90.67 $95.21 $99.98

8" $167.12 $170.63 $179.17 $188.13 $197.54 $207.42

10" $261.14 $303.60 $318.78 $334.72 $351.46 $369.04

12" $376.05 $487.90 $512.30 $537.92 $564.82 $593.07

Commodity Rate ($/hcf)

All customers $1.77 $2.64 $2.78 $2.92 $3.07 $3.23

Recycled Water Rate ($/hcf)

Non-Ag customers $1.24 $1.06 $1.12 $1.18 $1.24 $1.31

8.17.b


6 | City of Chino

Customer Impacts – Water

Table 3 below shows the impacts of an average single-family residential (SFR) customer with a 3/4-

inch meter using an average 14 hcf of water monthly. For comparison purposes, the impacts on very

low-end to very high-end users are also shown. Due to rounding in the calculations, some values may

not add to the penny.

Table 3: SFR Water Monthly Rate Impacts

Customer Class Meter SizeMonthly

Usage (hcf)Current Bill

Proposed

BillDifference

SFR - Low 5/8" & 3/4" 8 $43.68 $44.55 2.0%

SFR - Average 5/8" & 3/4" 14 $54.30 $60.39 11.2%

SFR - High 5/8" & 3/4" 40 $100.32 $129.03 28.6%

8.17.b



WASTEWATER UTILITY

System Background

The City’s wastewater utility is responsible for the collection, treatment, and disposal of wastewater

from approximately 25,100 residential (each multi-family dwelling unit is counted as an account)

and non-residential accounts. The City owns and operates its collection system consisting of 222

miles of sanitary sewers, and 1 pump station. Wastewater is treated at the IEUA, a regional

wastewater treatment agency that provides sewage utility services to seven contracting agencies

under the Chino Basin Regional Sewage Service Contract: the cities of Chino, Chino Hills, Fontana,

Montclair, Ontario, Upland, and Cucamonga Valley Water District (CVWD) in the city of Rancho

Cucamonga.

Table 4 shows the existing wastewater rate structure. All customers are assessed a fixed monthly

wastewater rate per equivalent dwelling unit (EDU). Non-residential customers are classified into

10 classes based on their strength with varying charges per EDU. Non-residential EDUs, except

schools, are calculated based on their water usage plus a return factor. Schools (Class 13) EDUs are

calculated based on average daily attendance. IEUA treatment charges, which are passed through to

customers, are also assessed using the same structure at $14.39 per EDU.

Table 4: Existing Monthly Wastewater Collection Charge

Financing Plan

In order to determine wastewater rates, RFC projected the revenue requirements, including

operations and maintenance (O&M), capital improvement expenses, reserves requirements, etc., for

the study period from FY 2016 to 2025. O&M expenses include the cost of operating and maintaining

wastewater collection as well as the costs of providing technical services such as engineering and

other administrative costs of the wastewater system such as customer service and billing. O&M

Current

Monthly Sewer Collection Charge

Single Family (per dwelling unit) $9.75

Multi-Family (per dwelling unit) $6.82

Commercial (per EDU)

Class 5 Office, day care, retail/service $9.75

Class 6 Mortuary $11.86

Class 7 Hotel,motel,bar,tavern $13.22

Class 8 Car wash, laundromat $7.05

Class 9 Dry cleaners, commercial laundry $15.30

Class 10 Hotel, motel without dining $8.97

Class 11 Doctor, dentist office $7.98

Class 12 Restaurant, bakery, market $13.12

Class 13 Public and private schools $9.75

Class 14 Industrial Accounts w/o sampling data $9.75

8.17.b


8 | City of Chino

projections are based on the City’s FY 2016 budget using an inflationary factor of three percent per

year starting in FY 2016 to project all O&M expenditures, except benefits and utilities. Benefits are

projected to increase at five percent per year and utilities (mostly power) expenses are projected to

increase at four percent per year during the study period. IEUA expenses are excluded from the

budgets since these costs are passed through to customers. Figure 4 shows the projected O&M

expenses over the planning period.

Figure 4: Projected O&M Expenses – Wastewater

Capital expenditures are based on the City’s Capital Improvement Program (CIP) and are funded

primarily through wastewater rates revenue. Figure 5 shows the CIP funding plan over the ten-year

period.

Similar to growth used in the water projections, single family residential wastewater accounts are

projected to grow at approximately three percent per year until FY 2020. All other customer classes

are projected to remain at current levels.

$0

$1

$2

$3

$4

$5

$6

FY 2016 FY 2018 FY 2020 FY 2022 FY 2024

Mill

ion

s

Projected O&M Expenses

Sewer Billing Sewer - Sanitary Sewer - Environmental Engineering Sewer - Capital Program

8.17.b



Figure 5: Capital Financing Plan – Wastewater

In order to meet projected revenue requirements and to maintain desired reserves fund balances,

the revenue adjustments in Table 5 are proposed to meet long term revenue stability.

Table 5: Annual Revenue Increases – Wastewater

Effective Date Increases

October 1, 2015 20%

October 1, 2016 15%

October 1, 2017 15%

October 1, 2018 0%

October 1, 2019 0%

The increases are needed to fund capital and inflationary expenses.

Figure 6 shows the resultant fund balance for the wastewater utility. The red line represents the

total target, which is composed of operating, capital, and rate stabilization reserves targets consistent

with industry standards. The operating reserve target is set at 25 percent of the operating expenses;

the capital reserve target is set at 100 percent of average annual capital expenditures; and the rate

stabilization target is set at one percent of total rate revenue since wastewater revenues are less

likely to fluctuate with water conservation efforts.

$0.4

$1.2 $1.2$1.3

$1.2 $1.2$1.2

$1.6$1.6

$1.7

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

$1.8

FY 2016 FY 2018 FY 2020 FY 2022 FY 2024

Mill

ion

sCapital Financing Plan

Bond Funded CIP Rate Funded CIP

8.17.b


10 | City of Chino

Figure 6: Fund Balance – Wastewater

Proposed Wastewater Rates

RFC recommends that the current rate structure be retained. However, the individual customer class

rates are determined based on cost of service analysis. More accurate wastewater flow readings into

the plant resulted in lower flows from residential customers and proportionately higher costs to

commercial customers based on their respective flows. Since collection costs are independent of

strength, the rate for each EDU, residential and non-residential, is the same.

Table 6 shows the proposed wastewater rates for the next five years, effective October of each year.

Table 6: Proposed Monthly Wastewater Rates

$0

$1

$2

$3

$4

FY 2016 FY 2018 FY 2020 FY 2022 FY 2024

Mill

ion

sFund Balances

Total Funds Total Target

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020


Single Family (per dwelling unit) $11.78 $13.55 $15.59 $15.59 $15.59

Multi-Family (per dwelling unit) $8.24 $9.48 $10.91 $10.91 $10.91


Class 5 Office, day care, retail/service $11.78 $13.55 $15.59 $15.59 $15.59

Class 6 Mortuary $11.78 $13.55 $15.59 $15.59 $15.59

Class 7 Hotel,motel,bar,tavern $11.78 $13.55 $15.59 $15.59 $15.59

Class 8 Car wash, laundromat $11.78 $13.55 $15.59 $15.59 $15.59

Class 9 Dry cleaners, commercial laundry $11.78 $13.55 $15.59 $15.59 $15.59

Class 10 Hotel, motel without dining $11.78 $13.55 $15.59 $15.59 $15.59

Class 11 Doctor, dentist office $11.78 $13.55 $15.59 $15.59 $15.59

Class 12 Restaurant, bakery, market $11.78 $13.55 $15.59 $15.59 $15.59

Class 13 Public and private schools $11.78 $13.55 $15.59 $15.59 $15.59

Class 14 Industrial Accounts w/o sampling data $11.78 $13.55 $15.59 $15.59 $15.59

8.17.b



Customer Impacts – Wastewater

Table 7 below shows the impacts to the different customer classes in FY 2016.

Table 7: Wastewater Monthly Rate Impacts

Figure 7 compares the total monthly water and wastewater service charges for an average SFR

customer with a 3/4” meter and 14 hcf of water usage monthly with neighboring communities’ rates

as of June 2015.

FY 2016 Current Difference


Single Family (per dwelling unit) $11.78 $9.75 $2.03

Multi-Family (per dwelling unit) $8.24 $6.82 $1.42


Class 5 Office, day care, retail/service $11.78 $9.75 $2.03

Class 6 Mortuary $11.78 $11.86 ($0.08)

Class 7 Hotel,motel,bar,tavern $11.78 $13.22 ($1.44)

Class 8 Car wash, laundromat $11.78 $7.05 $4.73

Class 9 Dry cleaners, commercial laundry $11.78 $15.30 ($3.52)

Class 10 Hotel, motel without dining $11.78 $8.97 $2.81

Class 11 Doctor, dentist office $11.78 $7.98 $3.80

Class 12 Restaurant, bakery, market $11.78 $13.12 ($1.34)

Class 13 Public and private schools $11.78 $9.75 $2.03

Class 14 Industrial Accounts w/o sampling data $11.78 $9.75 $2.03

8.17.b


12 | City of Chino

Figure 7: Total Monthly Bill Comparison – 14 hcf1

Figure 8 compares the total monthly water and wastewater service charges for SFR customer with

a 3/4” meter and 20 hcf of water usage monthly with neighboring communities’ rates as of June

2015.

1 Rates shown in survey were as of June 2015. City of Corona is not an IEUA member agency.

$0

$20

$40

$60

$80

$100

$120

Water and Wastewater Monthly Bill Comparison - 14 hcf

Water Bill Sewer Bill

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Figure 8: Total Monthly Bill Comparison – 20 hcf

$0

$20

$40

$60

$80

$100

$120

$140

Water and Wastewater Monthly Bill Comparison - 20 hcf

Water Bill Sewer Bill

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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, CALLING A SPECIAL NOTICE PROCEEDING AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON RATES, FEES AND CHARGES FOR WATER, SANITARY SEWER, STREET SWEEPING, AND REFUSE AND RECYCLING SERVICES

The City Council of the City of Chino (hereafter referred to as the “City Council”) does resolve as follows: WHEREAS, the City Council has by previous Resolution set rates, fees and charges for water, sanitary sewer, street sweeping, and refuse and recycling services. NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, PURSUANT TO SECTION 6 OF ARTICLE XIIID OF THE CONSTITUTION OF THE STATE OF CALIFORNIA, AS FOLLOWS: Section 1 Calling a special notice proceeding: Pursuant to Section 6 of Article XIIID of the California Constitution, a special notice proceeding is hereby called on the proposition of increasing rates, fees and charges for water, sanitary sewer, street sweeping, and refuse and recycling services. Section 2 Description of special notice proceeding: The special notice proceeding on the proposition of increasing rates, fees and charges for water, sanitary sewer, street sweeping, and refuse and recycling services pursuant to Section 6, of Article XIII D of the California Constitution consists of a mailed notice, distributed to the ratepayers of record within the City’s latest ratepayer database. Each ratepayer has the right to submit written protest against the proposed rates, fees and charges and may do so by mail or in person to the City Clerk no later than the conclusion of the Public Hearing on September 15, 2015. At the Public Hearing, pursuant to Section 6 of Article XIII D of the California Constitution, the City shall consider all protests against the proposed rates, fees and charges. If written protests against the proposed fee or charge are presented by a majority of owners of the identified parcels, the City shall not impose the fee or charge. Section 3 Notice: The City shall give notice of the time and place of the Public Hearing to all ratepayers within the City by mailing to each ratepayer a Notice of Public Hearing identifying the time and place of the hearing along with the proposed rates and by causing the publishing of this Resolution once in a local newspaper for two consecutive weeks not less than ten (10) days before the date of the Public Hearing, and by posting a copy of this Resolution on the official bulletin board customarily used by the City Council for the posting of notices. Written protests must be received prior to the conclusion of the Public Hearing, at which time they will be considered. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard. Section 4 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on September 15, 2015 at 7:00 p.m. or as soon thereafter as feasible at Chino City Hall, 13220 Central Ave., Chino.

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Section 5 The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law.

PASSED AND ADOPTED by the City Council of the City of Chino at a regular meeting held on the 21st day of July 2015.

______________________________________ DENNIS R. YATES, MAYOR

ATTEST:

_________________________________ ANGELA ROBLES, CITY CLERK

STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) SS CITY OF CHINO )

I, ANGELA ROBLES, City Clerk of the City of Chino, HEREBY DO CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the City Council of the City of Chino, held on the 21st day of July 2015, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

________________________________ ANGELA ROBLES, CITY CLERK

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