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HomeMy WebLinkAbout10/07/2003, PH3 - SUB-AREA TRANSPORTATION IMPACT FEE FOR THE LOS OSOS VALLEY ROAD/US 101 INTERCHANGE PROJECT � 1 Council M..IimNu October 7,2003 acn C Enaa RVnOizt Itw Nw6er CITY OF SAN LUIS OBISPO FROM: Mike McCluskey,Director of Public Works Prepared By:By: Timothy Scott Bochum,Deputy Director of Public Works SUBJECT: SUB-AREA TRANSPORTATION.IMPACT FEE FOR THE LOS OSOS VALLEY ROAD/JS 101 INTERCHANGE PROJECT CAO RECOMMENDATION Adopt a resolution amending the City's transportation impact fees by establishing a "sub-area" fee to assist in funding improvements to the Los 6sos Valley Road/US 101 interchange. DISCUSSION On August 27, 2003, the Council received a report on the status of the Project Study Report for the Los Osos Valley Road (LOVR)/US 101 Interchange improvement project. As part of that report, it Was identified that for budgeting purposes, a total estimated project cost would be established at $16,000,000. Also as part of that report, staff indicated that we would be returning to Council with recommendations for establishing a "Sub-Area" fee for the interchange project that will pass on appropriate costs for the interchange improvements to development projects located near the facility in a fair share contribution program. For budgeting and planning purposes, staff is assuming that ultimately we will be successful in receiving grants in an amount of half ($8,000,000)of the total project costs when the project is eventually constructed. Using the City's traffic model and various environmental documents that included trip generation estimates, staff has computed the percentage of vehicle trips that would be generated by the new development surrounding the interchange and refined that information into per trip costs for new development's share of the interchange improvements. Trip generation estimates were based primarily on the Institute of Transportation Engineers (ITE) Trip Generation Manual, 6'b Edition. A sub-area around the interchange was established that reflected the likely development and redevelopment that will affect the need for increased capacity at the interchange location. Attachment 1 includes the authorizing resolution as well as a map depicting the Sub-Area of the City that will be part of the LOVR/US 101 interchange Sub-Area fee. How Does the Sub-Area Fee Relate to the Existing Transportation Impact Fee(TIF)Program? Partial funding for the LOVR/US 101 interchange project is included in the existing TIF program. However, the estimated cost was based upon 1994 information (when the TIF program was established). At the time, it was believed that the project was very simple and that the total cost of the project would be $3,000,000. Now that more refined investigations have been completed, the cost of the full interchange improvements have been determined to be nearer to $16,000,000. In the current TIF program, all new development equally shares the cost of the $3,000,000 estimate. As explained above, the sub area which will receive the greatest benefit (and cause the greatest Sub-Area Transportation Impact Fee for the LOVRIUS 101 Interchange Project Page 2 demand) is designed to provide its fair share of the improvement costs. The rest of the City still benefits and thus will continue to contribute toward the project but at a much lower level. Calculating the Sub-Area fee.. Using the City traffic model percentages of traffic distribution through the new facility,the following funding components have been determined: Table 1. LOVR/101 Interchange Funding Summary Sub-Area Fee of the TIF Prograin $5,096,000 TIF Program(City-Wide) $2,904,000 Other/Grants $8,000,000 Total $16,000,000 The proposed Sub-Area fee of the TIF program will distribute the $5,096,000 fairly to development projects in the Sub-Area. This amount was distributed using the PM Peak traffic generation model for build-out of the City. Based on an estimated increase of 2,331 peak PM trips in the sub-area, a per trip amount of$2,186 was tabulated for the Sub Area component. In order to be consistent with the existing TIF program, these per trip amounts were applied to various land use categories that reflect potential development in the area. However, in order to more accurately assign the fair share cost, additional land use categories are included in the Sub- Area fee component beyond those in the existing TIF program. The following Table depicts the proposed transportation impact fee that would be paid by projects in the Sub-Area (All other development projects in the City would pay the current TIF fee). Table Z. LOUR Sub-Area Fee o Current Discounted City-Wide City-Wide LOVR Land Use Basis TIF TIF(1) Interchange Total Retail Very High (2) Per 1,000 sq ft 7_2,3_53 1,988 $18;500 20,488 Retail High Per 1,000 sq ft 2,353 1,988 9,260 11,248 Retail Strip Per 1,000 sq ft 2,353 1,988 6,620 8,608 Retail Specialty Per 1,000 sq ft 2,353 1,988 6,370 8,358 Retail Auto Per 1,000 sq ft 2,353 1,988 4,150 6,138 Retail Medium Per 1,000 sq ft 2,353 1,988 3,780 5,768 Hotel Per room 692 585 1,217 1,802 Single Family Residential Per dwelling unit 1,491 1,260 927 2,187 Multi-Family Residential Per dwelling unit 1,323 1,118 569 1,687 Other(3) Per ADT/PM trip 139/ADT 117 1 2,186/PM trip Total/Trip 1. Discounted at 15.5%to reflect portion of the LOVR/US 101 interchange in the City-wide TIF program 2. Use is for fast food type commercial without drive thru facilities. 3. ADT:Average Daily Trip. Will Sub-Area developers also pay the City-wide TIF fee? Yes,but as reflected above, it will be a modified fee to recognize that they have already paid their fair share toward the interchange project. Projects located within this Sub Area will be responsible for paying the Sub-Area fee as well as a modified TIF amount, which has been reduced to reflect the fact that they are directly 3 -A Sub-Area Transportation Impact Fee for the LOVR/US 101 Interchange Project Page 3 participating in the Interchange Sub-Area Fee. The TIF reduction amount is 15.5%,which reflects the then estimated cost of the LOVR project ($3,000,000) as compared to the overall TIF "pot' of $19,326,220. What TIF charge will non Sub-Area developers pay? Developers outside the Sub-Area will continue paying the existing TIF charge, which includes the 15.5% contribution for the LOVR interchange. Staff anticipates returning to Council with new and updated TIF charges in early 2004, at which time all TIF project costs will be brought current. In the case of the LOVR interchange, the estimate for the amount to be paid by the City-wide TIF program will actually decrease to $2,904,000 from the current $3,000,000. However, most other projects have seen an increase in projected costs from the estimates derived in 1990. We will propose increases at some level in TIF amounts overall. Impact on development in the area. While there are several projects currently under review in the Sub-Area,the following is an example of the impact of the proposed fee for the Costco project: Table 3. Sample Costco_ Fees Square Sub-Area Fee Use I Feet Per Square Foot Total Fee Retail Specialty 1 140,000 1 $8,358 J $1,170;100 Note: This is an estimate only. The final fee will be calculated when fueUalcohol sales issue is ultimately determined and number of gaspumps known. These amounts are consistent with the information provided to Costco about likely fees for its project. What Are Potential Grant Sources As discussed at the August 28, 2003 Council meeting, staff is anticipating that 50% of the total project cost will be covered by non-local sources, i.e. grants or other appropriations. While it is too early to identify these sources exactly, it is anticipated that the project with its 50/50 proposed match will compete well against other projects for Regional and'State Transportation Improvement Program(RTIP and STIP) funds as well as potential Federal funds. What About Development Outside of the City? Development outside the City impacts the LOVR/US 101 interchange. As such, the City is currently working with the County of San Luis Obispo to create a mechanism to pass on appropriate fair share costs of the LOVR Interchange improvement project to County projects currently being considered by that jurisdiction. If such a mechanism is created, costs to City development will be adjusted to reflect the lower fair share contributions. Staff will continue to work on this issue and will return to the Council with revised City-wide and Sub-Area and TIF amounts if/when such a program is created. 3- 3 Sub Area Transportation Impact Fee for the LOVR/US 101 Interchange Project. Page 4 CONCURRENCES Staff has been worldng with area development, the County of San Luis Obispo and area property owners to establish the fair share cost program for the LOVR/US 101 Interchange project. FISCAL EVIPACT No impact to the General.Fund is anticipated with the proposed modification to the TIF program. ATTACHMENT Attachment 1 -Resolution I:\ Council Agenda Reports\2003 agenda reportsMunsportation and Development Review 03ochum)\LOVR Subarea Fee.DOC ATTACHMENT I RESOLUTION NO. (2003 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING THE CITY'S TRANSPORTATION IMPACT FEES BY ESTABLISHING A SUB-AREA FEE TO ASSIST IN FUNDING IMPROVEMENTS TO THE LOS OSOS VALLEY ROAD/US 101 INTERCHANGE WHEREAS, Chapter 4.56.10 of the City of San Luis Obispo Municipal Code establishes transportation impact fees and provides Tor the setting of fee amounts and other matters by resolution of the Council; and WHEREAS, the City of San Luis Obispo has prepared studies to determine the need for transportation facilities and improvements to serve new development; and WHEREAS, the existing transportation impact fee program includes the improvement of the Los Osos Valley Road/US 101 Interchange to serve new development but needs to more accurately distribute the fair share costs for e project to new development; and WHEREAS, on October 7, 2003, the Council conducted a public hearing and considered testimony of interested parties, the staff report and the recommendations of staff. NOW, THEREFORE, BE IT RESOLVED that the Council modifies the existing Transportation Impact Fee program as follow 1. A new Los Osos Valley Roa Id/US 101 Interchange Improvement project Sub-Area is hereby created and is depicted in Exhibit A. 2. A Los Osos Valley Road/US 101 Interchange Improvement project Sub-Area Fee for the Transportation Impact Fee program is hereby created as set forth in Exhibit B, which includes the City-Wide portion of the fee: 3. All other provisions, findings and requirements of the Transportation Impact Fee program will remain in effect pursuant to Resolution No. 8406(1995 Series). BE IT FURTHER resolved that the Council makes the following findings: 1. The purpose of the LOVR/US 101 Sub Area Fee is to provide adequate street improvements and bicycle and pedestrian facilities to satisfy the needs of new development and to mitigate the impacts of new development on the City's transportation facilities. 2. The Sub Area Fee and transportation impact fees collected to this resolution shall be used to pay for street, pedestrian and bicycle facilities and improvements and shall not be in lieu of any other fee or tax. 3. There is a reasonable relation iship between the types of development on which the fees are imposed and(a)the use of those fees and(b) the need for the facilities and improvements. f Resolution No. (2003 Series) Page Two 4. There is a reasonable relationship between the amount of fee and the cost of the facilities and improvements attributable to the developments on which the fees are imposed. 5. The sub-area fees shall become effective January 1, 2004. On motion of ,seconded by and on the following roll call vote: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted on October 7, 2003. Mayor David F. Romero ATTEST: Lee Price, City Clerk APPROVED AS TO FORM: AzA416 P. Lowell, City Attorney 3— Lo Resolution No. (2003 Series) Page Two Exhibit A e f , / l 3 t 1 Los Osos Valley Road/US 101 Interchange Sub Area Resolution No. (2003 Series) Page Two Exhibit B TRANSPORTATION IMPACT FEES LOS OSOS VALLEY ROAD/US 101 INTERCHANGE SUB AREA FEES Current Discounted City-Wide City-Wide LOVR Land Use Basis TIF TIF(1) Interchange Total Retail Very High(2) Per 1,000 sq ft $2,353 $1,988 $18,500 $20,488 Retail High Per 1,000 sq ft 2,353 1,988 9,260 11,248 Retail Strip Per 1,000 sq ft 2,353 1,988 6,620 8,608 Retail Specialty Per 1,000 sq ft 2,353 1,988 6,370 8,358 Retail Auto Per 1,000 sq ft 2,353 1,988 4,150 6,138 Retail Medium Per 1,000 sq ft 2,353 1,988 3,780 5,768 Hotel Per room 692 585 1,217 1,802 Single Family Residential Per dwelling unit 1,491 1,260 927 2,187 Multi-Family Residential Per dwelling unit 1,323 1,118 569 1,687 Other(3) Per ADT/PM trip 139/ADT 117 2,186/PM trip Totavrri 1. Discounted at 15.5%to reflect portion of the LOVR/US 101 interchange in the City-wide TIF program. 2. Use is for fast food type commercial without drive thru facilities. 3. ADT:Average Daily Trip. 3-g miss, ��i ♦ �� ♦�♦♦ �� ����� ter.. — _.. v::.::::::...:.::n.. <.yiii�'+.v:'. ♦ mall J � ♦ - 0, �\«<::<::::««::««<«<::::�:<:>::::>::�/11111 ���� �-:•��t ---- - - � �`_�--_-�' •, �:.::.::::::::::.:::::«<::>::;:.:;:. _ 11111111 ►11►\ -- • ..X1111� ♦ �>2} / �i`� ' 11111{p�,�,Q=: �.wta''4> :;.>:?if• �� /. 1. p ��♦ � 1111 �� �.>:;::;;;;<:;;;;:>;:�;:::<.:::;:;; \ I \ ��♦ 1111 I/�I 1` �.> `>"�>v�;<:<. ♦/ vehvr �IIIIC ow Iwo V. � Tw ��'����r�'� �� 1\� � 11���� •■ ---��1/SII - '��' — ■.• 111- �i''��Srl ���i���-si ME/I���I��; • I�' \ /' 1 ��`�' ,I il, l_, III7C�. I. �� _I� ♦I�����C'ii I////III�; c �`r�_i •�. r1. �! 'Z so UM Ills rr Cr 1 „ so Use 0 „ CD CL CD CL ON �I �Iv council Mttri,D« 10/07/2003 agenba REpoRt 'wmnmb,, CITY OF SAN LUIS O B I S P O FROM: Michael D. McCluskey, Public Works Director Prepared by: Matthew A. Horn,Associate EngineerMk SUBJECT: NEW BISHOP WATER TANK, SPECIFICATION NO. 90232A CAO RECOMMENDATIONS 1. Approve the award to and authorize the Mayor to execute a contract with Black&Veatch in the amount of $232,022 for environmental, design, right of way and construction management services for the New Bishop Water Tank. 2. Approve the transfer $272,300 from the Distribution Master Plan Implementation Account to the New Bishop Water Tank Account. DISCUSSION Background: The existing Bishop water storage tank has been identified in the Water System Master Plan as a system deficiency. The Water System Master Plan recommends upgrading the existing 90,000 gallon water storage tank to 750,000 gallon. Increasing the storage capacity at this site will provide increased fire protection and enhanced operational reliability and flexibility. Consultant Services: Request for proposals were advertised on 05/24/03, and opened on 06/26/03. Four proposals were received. Two engineering staff members and one utilities staff member reviewed the proposals. The following ranking resulted from the staff review. 1. Black & Veatch 2. Schaaff& Wheeler 3. Boyle Engineering 4. Tetra Tech The top three candidates proposed fees that were significantly more than staff's estimate of the cost to design a water storage tank. After careful and reflective review, the committee is recommending award of the agreement to Black and Veatch at $232,022 with options of an additional $15,497, due to two factors: (1) the engineer's estimate could not be based on recent relative design costs since the City has not designed or built a water storage tank in many years; and (2) while the proposed fees were higher than the engineer's estimate, all the engineering firms proposing were very similar in their estimates of total hours of work and hourly rates. Black & Veatch was unanimously selected by staff based upon the detail of their proposal, understanding of the issues and their expertise in the water supply field. Staff has worked with Council Agenda Report—New Bishop Water Tank, Spec. # 90232A Page 2 Black & Veatch to reduce their contract fee by making a portion of the project scope optional. This optional work may or may not be required. CONCURRENCES The Utilities Department concurs with the CAD's recommendations. FISCAL IMPACT Black & Veatch's Proposal $ 232,022 Optional Additional Work $ 15,497 Contingencies $ 24,781 Total $ 272,300 The selected consultant proposed fees are $232,022 with an optional $15,497 for additional work that may or may not be required. The original engineer's estimate was $160,000. The study and design portion of the new Bishop Water Tank were approved in the 2001-2003 Financial Plan, Appendix B, page 126. Funding for this project will be transferred from the Distribution Master Plan Implementation Account, which has a current balance of $835,000 that can be used to support this request. ATTACEMENTS: 1. Vicinity Map 2. Agreement gAstati\kiser\agenda prep files\90232a car award.doc n,� l.� O� v � CL O � CN Q: >- N � � Z rn N CO V) Q) LiW > o W z r CL ,EE C$ti W N W ■ O � ® Q A Z a � �I y Q 5�Ss 4 z3 NIS E ,• IL— r M1 ATTACHMENT Section D FORM OF AGREEMENT AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this_ day of 2003 by and between the CITY OF SAN LUIS OBISPO, a municipal corporation,hereinafter referred to as City, and Black & Veatch , hereinafter referred to as Consultant. WITNESSETH: WHEREAS, on May 24, 2003; City requested proposals for design services for the New Bishop Water Storage Tank Specification No. 90232A. WHEREAS, pursuant to said request, Consultant submitted a proposal that was accepted by City for said services. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until acceptance or completion of said services. 2. INCORPORATION BY REFERENCE. City Specification No. 90232A and Consultant's proposal dated June 2003, are hereby incorporated in and made a part of this Agreement. 3. CONSULTANT ENDORSEMENT. The responsible consultant shall stamp and sign all plans, specifications, estimates and engineering data furnished by the Consultant where appropriate. 4. ABILITY TO PERFORM. The Consultant warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. Additionally, the prime consultant must have the ability to provide and provide a majority, as deemed by the City, of the requested consultant tasks. 5. REQUIRED DELIVERABLE PRODUCTS. The consultant will be required to provide: a) 1 hard copy of draft studies completed for the project. b) 3 hard copies of final studies completed for the project. c) 1 Adobe Acrobat file per final study prepared for the project. d) 1 hard copy of all design and quantity calculations. e) 3 hard copies of the 50% draft plan and preliminary cost estimate for review. f) 3 hard copies of the 95% plan, specification and estimate for review g) 1 stamped original hard copy of the 100% plans, ink on mylar, and stamped technical specifications for each construction phase. h) 1 Adobe Acrobat file of stamped and signed plans and specifications. • All final products shall include a digital copy. The Consultant must provide the corresponding computer files to the City, compatible with the following programs. Word Processing Word Spreadsheets Excel Computer Aided Drafting AutoCAD All Documents Adobe Acrobat -1- ATTACHMENT a • Computer files must be submitted on CD-Rom formatted for IBM-compatible systems. Each CD-Rom must be clearly labeled. Files maybe emailed to the City if they are not overly large, or in a self-executing format. 6. ATTENDANCE AT MEETINGS AND HEARINGS. As part of the workscope and included in the contract price is attendance by the Consultant at up to 3 public meetings to present and discuss its findings and recommendations. Consultant shall attend as many "working" meetings with staff and site visits as are necessary to perform workscope tasks. 7. OWNERSHIP OF MATERIALS. All original drawings, plan documents and other materials prepared by or in possession of the Consultant as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. 8. RELEASE OF REPORTS AND INFORMATION. Any reports, information, data or other material given to, prepared by or assembled by the Consultant as part of the work or services under these specifications shall be the property of the City and shall not be made available to any individual or organization by the Consultant without the prior written approval of the City. 9. COPIES OF REPORTS AND INFORMATION. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Consultant is required to furnish in limited quantities as part of the work or services under these specifications, the Consultant shall provide such additional copies as are requested, and the City shall compensate the Consultant for the costs of duplicating of such copies at the Consultant's direct expense. 10. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Consultant shall receive therefor compensation in a total sum not to exceed$232,022. Progress payments shall be made on a monthly basis as invoiced by Consultant with monthly payments not to exceed: $ 144,708 prior to 50% submittal; $ 165,381 prior to 95% submittal; $ 186,053 prior to 100% submittal and all permits obtained; and $232,022 prior to completion of construction and record drawings. The following additional work will be completed upon written authorization by the City:. $ 2,470 for Environmental Permit Applications $ 1,260 for Environmental Application Submittal $ 1,850 for Response to questions concerning Negative Declaration $5,000 for Environmental Monitoring $ 1,700 for Geotechnical meetings and consultation $ 1;808 for Geotechnical field visit during construction A 5% retention of the total progress payments and additional work completed will be withheld until 35 days after completion of construction and record drawings been received by the City. If the City fails to authorize the advertising for construction within 3 months following the acceptance of a complete final submittal with required permits by the Consultant, the retention shall be released for the completed tasks of the project. 11. INSPECTION. The Consultant shall furnish City with every reasonable opportunity for City r� -2- 1 ATTACHMENT` a, to ascertain that the services of the Consultant are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Consultant of any of its obligations to fulfill its contract requirements. 12. INTERESTS OF CONSULTANT. The Consultant covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Consultant further covenants that, in the performance of this work, no subconsultant or person having such an interest shall be employed. The Consultant certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Consultant shall at all times be deemed an independent consultant and not an agent or employee of the City. 13. CONTRACT ASSIGNMENT. The Consultant shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 14. AUDIT. The City shall have the option of inspecting and/or auditing all records and other written materials used by Consultant in preparing its invoices to City as a condition precedent to any payment to Consultant. 15. PERMITS AND LICENSES. The Consultant shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 16. PAYMENT OF TAXES. The contract prices shall include full compensation for all taxes that the Consultant is required to pay. 17. CONSULTANTS OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Consultant agrees with City to do everything required by this Agreement. 18. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Engineer of the City. 19. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 20. SAFETY PROVISIONS. The Consultant shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 21. PUBLIC AND EMPLOYEE SAFETY. Whenever the Consultant's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 22. PRESERVATION OF CITY PROPERTY. The Consultant shall provide and install suitable -3- y ATTACHMENT a safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Consultant's operations, it shall be replaced or restored at the Consultant's expense. The facilities shall be replaced or restored to a condition as good as when the Consultant began work. 23. IMMIGRATION ACT OF 1986. The Consultant warrants on behalf of itself and all subconsultants engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 19.86 and other applicable laws shall be employed in the performance of the work hereunder. 24. CONSULTANT NON-DISCRIMINATION. In the performance of this work, the Consultant agrees that it will not engage in, nor permit such subconsultants as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 25. HOLD HARMLESS AND INDEMNIFICATION. The Consultant agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Consultant's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Consultant, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Consultant's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 26. TERMINATION. If, during the term of the contract, the City determines that the Consultant is not faithfully abiding by any term or condition contained herein, the City may notify the Consultant in writing of such defect or failure to perform. This notice must give the Consultant a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Consultant has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Consultant to said effect. .Thereafter, neither parry shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Consultant's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Consultant shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Consultant as may be set forth in the Agreement payment schedule.; compensation for any other work, services or goods performed or provided by the Consultant shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Consultant be entitled n -4- ATTACHMENT'; d to receive in excess of the compensation quoted in its proposal. 27. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City Matt Horn City of San Luis Obispo 955 Morro Street San Luis Obispo, CA 93401 Consultant [Paul Kneitz ] [Black &Veatch Corporation ] [1855 Gateway Blvd., Suite 1000 ] [Concord, CA 94520 ] 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to.be. executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: Lee Price, City Clerk Mayor APPROVED AS TO FORM: CONSULTANT t By: i ney Black & Veatch �-g -5- council o t , 2003 acenaa uEpoizt fk.".6` CS CITY OF SAN LUIS 0BISP. 0 FROM: John Moss,Utilities Directo911�- Prepared By: Gary Henderson,Water Division Manager LaM1 a SUBJECT: WATER TREATMENT PLANT STAFFING CAO RECOMMENDATION Appropriate $65,600 in 2003-04 and $64,200 in 2004-05 from unreserved Water Fund Working Capital in order to fund staff needs at the Water Treatment Plant. DISCUSSION The City of San Luis Obispo's Water Treatment Plant has been operated for many years with minimum staffing levels and minimal staff turnover. The current staffing at the plant includes a supervisor, chief operator, five operators and a maintenance technician. With very low water treatment operator turnover, one in the last 13 years, the City has been able to meet the staffing needs of the facility to ensure proper oversight and maintenance of the plant. The complexity of the water treatment plant requires significant training and on the job experience to obtain the required State of California certification levels to allow independent operation of the facility by our staff. For an entry level employee,this can take three or more years to obtain. There are two factors that are driving the need for additional funding to support water treatment plant staffing needs. The first involves the pending retirement of the Supervisor at the treatment plant.. While an exact retirement date has not been established,he has indicated that it will occur by the first of next year. The second vacancy is the result of an employee who is off work on a potential long-term disability. With the limited staffing at the treatment plant, these two vacancies will result in staffing levels that will seriously impact operations at the water treatment plant. Based on the current situation, Utilities management staff have evaluated the alternatives and propose the following solution to the pending staff issues. Following retirement of the Water Treatment Plant Supervisor, the Chief Operator will be promoted to permanently fill the position. The City would typically initiate an internal recruitment to identify employees interested in the position. Since the Chief Operator is the only employee that meets the requirements necessary for the position (as discussed below),this step is not required. The Chief Operator has been working with the Supervisor and the Water Division Manager for many years in preparation for potentially assuming the supervisor position. He has obtained the State Water Treatment Plant Operator Grade V certification (highest level) which is required for the Supervisor's position by the State Department of Health Services based on the complexity and size of our water treatment plant. With the pending Chief Operator vacancy, staff recommends initiating C3- I Council Agenda Report—Water Treatment Plant Staffing Page 2 recruitment at this time to fill the vacancy at the operator level caused by the promotion. The second part of the proposed solution would be to temporarily overstaff and backfill the operator position which is vacant due to the long-term disability. The position would be a two year contract position which may eventually become a regular position following future retirements or other vacancies. The proposed solution will hopefully allow the City to fill the positions by December and provide a smoother transition following the supervisor's retirement. Future Staffing Needs As part of the current Water Treatment Plant Master Plan work being performed by Black and Veatch, a staffing survey/evaluation was included in the scope of work. The preliminary survey results reveal that our facility may be understaffed when compared with other similar treatment plants. Staff is not requesting an increase in staffing at this point. Once the new plant supervisor has assumed the responsibilities and gained additional knowledge of the new job responsibilities, Utilities management staff will undertake a thorough evaluation of the long-term staffing needs to provide efficient and effective operation of the City's water treatment facility. CONCURRENCES The Human Resources Department agrees with the recommended solution for staffing needs at the Water Treatment Plant. FISCAL IMPACT The 2003-04 and 2004-05 costs associated with the implementation of the recommendation to resolve staffing issues are shown in the table below. These costs are in addition to the current adopted budgets for these line item accounts. The costs shown for contract services will provide for a large mailing to all certified treatment operators in California to hopefully attract more qualified applicants for the positions. The additional funding will be appropriated from Water Fund Working Capital,which has sufficient funds to support this request and maintain our reserve policy levels. Budget Line Item 2003-04 2004-05 Regular Salaries $48,200 $43,800 (500.55150.7010) Overtime $12,400 $20,400 (500.55150.7020) Contract Services $5,000 0 (500.55150.7227) TOTAL $65,600 $64,200 05 -a Council Agenda Report—Water Treatment Plant Staffing Page 3 ALTERNATIVES 1. Contract Operations Staff- Staff have contacted private firms that provide contract operations of water treatment facilities. The firms were asked if they could provide contract staff for a short- term period (two years) to provide certified operators to resolve the staffing issue facing the City. While these firms provide contract operations in other areas, most indicated that they are primarily interested in assuming control of the entire operations or are interested in longer term contracts. Therefore,this altemative is not recommended.