AGENDA

REGULAR MEETING OF THE LAKEPORT CITY COUNCIL AND THE BOARD OF DIRECTORS OF THE CITY OF LAKEPORT MUNICIPAL SEWER DISTRICT
Tuesday, October 16, 2012 City Council Chambers, 225 Park Street, Lakeport, California 95453
Any person may speak for three (3) minutes on any agenda item; however, total public input per item is not to exceed 15 minutes, extended at the discretion of the City Council. This rule does not apply to public hearings. Non-timed items may be taken up at any unspecified time.

I. II. III.

CALL TO ORDER & ROLL CALL: PLEDGE OF ALLEGIANCE: ACCEPTANCE OF AGENDA: Urgency Items:

6:00 p.m.

Move to accept agenda as posted, or move to add or delete items. To add item, Council is required to make a majority decision that an urgency exists (as defined in the Brown Act) and a 2/3rds determination that the need to take action arose subsequent to the Agenda being posted.
The following Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without any discussion. Any Council Member may request that any item be removed from the Consent Agenda for discussion under the regular Agenda. Removed items will be considered following the Consent Calendar portion of this agenda.

IV.

CONSENT AGENDA:

A. B. C. D.

Ordinances: Warrants: Contract Change Orders - Parallel Drive Water Main Project Notice of Completion, Parallel Drive Water Main Project

Waive reading except by title, of any ordinances under consideration at this meeting for either introduction or passage per Government Code Section 36934. Approve warrant register from October 3, 2012. Review and approve Contract Change Orders (CCO1 and CCO2) for the Parallel Drive Water Main project. Receive the Notice of Completion and authorize the Mayor to sign it on behalf of the City and the City Clerk to cause it to be recorded at the County Recorders Office.

V.

PUBLIC PRESENTATIONS/REQUESTS: A. Citizen Input:

Any person may speak for 3 minutes about any subject within the authority of the City Council, provided that the subject is not already on tonights agenda. Persons wishing to address the City Council are required to complete a Citizens Input form and submit it to the City Clerk prior to the meeting being called to order. While not required, please state your name and address for the record. NOTE: Per Government Code 54954.3(a), the City Council cannot take action or express a consensus of approval or disapproval on any public comments regarding matters which do not appear on the printed agenda.

B.

Presentation to Gary Basor, Police Officer of the Year

Presentation by Chief Rasmussen to Officer Gary Basor, Police Officer of the Year

VI.

COUNCIL BUSINESS: A. City Engineer 1. Cooperative Work Agreement, Lakeshore Emergency Repair Project Approve staff request to Caltrans for a Cooperative Work Agreement, extension request, for the preliminary engineering phase of the Lakeshore Boulevard Emergency Repair project.

B.

Finance Director 1. Resolution Authorizing an Interfund Loan Approve resolution authorizing an inter-fund loan between the general fund and the water operations and maintenance fund for the purchase of Green Ranch.

C.

City Manager 1. November 20, 2012 City Council Meeting Cancel or Reschedule the November 20, 2012 City Council Meeting due to City of Lakeport employee furloughs.

City Council Agenda of October 16, 2012

Page 2

VII.

CITY COUNCIL COMMUNICATIONS: A. Miscellaneous Reports, if any:

VIII.

CLOSED SESSION:

Pursuant to Government Code Section 54957.6 Conference with Labor Negotiator: Unrepresented Employees: City Manager and City Attorney Pursuant to Government Code 54956.9(b), Conference with Legal Counsel -Anticipated Litigation, one case. Pursuant to Government Code 54957, Public Employment Appointment: Police Lieutenant and Office Specialist

IX.

REPORT FROM CLOSED SESSION:

X.

ADJOURNMENT:

Adjourn

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerks Office at 225 Park Street, Lakeport, California, during normal business hours. Such documents are also available on the City of Lakeports website, www.cityoflakeport.com, subject to staffs ability to post the documents before the meeting.

In compliance with the Americans with Disabilities Act, the City of Lakeport will make available to members of the public any special assistance necessary to participate in
this meeting. The public should contact the City Clerks Office at (707) 263-5615 to make such a request. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

_______________________________________ Kelly Buendia, Deputy City Clerk

CITY OF LAKEPORT
City Council City of Lakeport Municipal Sewer District

STAFF REPORT
RE: Contract Change Orders - Parallel Drive Water Main Project SUBMITTED BY: Scott Harter, City Engineer PURPOSE OF REPORT: Information only Discussion Action Item MEETING DATE: 10/16/2012

WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD: The Council is being asked to review and approve the attached CCO's for the Parallel Drive Water Main project. BACKGROUND: The Parallel Drive Water Main Expansion project has been completed and the following Contract Change Order's serve to adjust the estimated contract quantities to the actual in place quantities. DISCUSSION: During construction of the project City staff was able to coordinate additional paving at the intersection of Todd Road and Parallel Drive. The additional paving subsequently required that the Stop bar and Stop legend be redone. CCO 1 addresses this need and CCO 2 adjusts the contract to reflect the in place quantities. OPTIONS: Approve CCO1 and CCO2. FISCAL IMPACT: None $3,435.50 Account Number: Comments: 1/2 of increase over contract SUGGESTED MOTIONS: Move to approve CCO1 and CCO2. Attachments: CCO1 & CCO2

Meeting Date: 10/16/2012

Page 1

Agenda Item #IV.C

CHANGE ORDER No. 1

PROJECT: Construction Parallel Drive Water Main Expansion Project
CONTRACTOR: Preston Pipelines, Inc. 8455 24th Ave. Sacramento, CA 95826

The following changes are hereby made to the Contract Documents: Consistent with email dated May 15, 2012 install thermoplastic stop bar and stop legend at the intersection of Parallel Drive and Todd Road. Justification: Staff coordinated the paving of the intersection of Todd Road and Parallel Drive; this provides the appropriate pavement markings. CHANGE TO CONTRACT PRICE Original Contract Price: $777,265.00 Current contract price as adjusted by previous change order(s): $777,265.00 The Contract Price due to this Change Order will be increased by a not to exceed cost of: $294.00 The new Contract Price due to this Change Order will be not to exceed: $777,559.00

CHANGE TO CONTRACT TIME There will be no additional days added to the Contract Time.

APPROVALS REQUIRED To be effective, the Owner must approve this order if it changes the scope or objectives of the project or as may otherwise be required under the terms of the Supplementary General Conditions of the Contract.

Requested by ______________Owner___________________________________ Recommended by ____________________________________________________ Scott Harter, City Engineer Approved by _________________________________________________________ Mayor, City of Lakeport Accepted by _________________________________________________________ Preston Pipelines, Inc.

date ______5/14/12_____ date _______5/15/12___

date ______10/16/12_____

date ___________________

C:\Users\kbuendia\Documents\Agendas\CCO1.doc

CHANGE ORDER No. 2

PROJECT: Construction Parallel Drive Water Main Expansion Project
CONTRACTOR: Preston Pipelines, Inc. 8455 24th Ave. Sacramento, CA 95826

The following changes are hereby made to the Contract Documents: Adjust the contract quantities to reflect actual in place quantities. Justification: The contract is based on estimated quantities this CCO serves to adjust the estimated contract quantities to the actual in place quantities. CHANGE TO CONTRACT PRICE Original Contract Price: $777,265.00 Current contract price as adjusted by previous change order(s): $777,559.00 The Contract Price due to this Change Order will be increased by a not to exceed cost of: $6,577.00 The new Contract Price due to this Change Order will be not to exceed: $784,136.00

CHANGE TO CONTRACT TIME There will be no additional days added to the Contract Time.

APPROVALS REQUIRED To be effective, the Owner must approve this order if it changes the scope or objectives of the project or as may otherwise be required under the terms of the Supplementary General Conditions of the Contract.

Requested by ______________Owner___________________________________ Recommended by ____________________________________________________ Scott Harter, City Engineer Approved by _________________________________________________________ Mayor, City of Lakeport Accepted by _________________________________________________________ Preston Pipelines, Inc.

date ______9/1812_____ date _______9/18/12___

date ______10/16/12_____

date ___________________

C:\Users\kbuendia\Documents\Agendas\CCO2.doc

CITY OF LAKEPORT
City Council City of Lakeport Municipal Sewer District

STAFF REPORT
RE: Notice of Completion, Parallel Drive Water Main Project SUBMITTED BY: Scott Harter, City Engineer PURPOSE OF REPORT: Information only Discussion Action Item MEETING DATE: 10/16/2012

WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD: The Council is being asked to receive the attached Notice of Completion and authorize the Mayor to sign it on behalf of the City and the City Clerk to cause it to be recorded at the County Recorder's Office. BACKGROUND: The Parallel Drive Water Main Expansion project was satisfactorily completed this summer. All punch list items have been finished and staff is recommending acceptance of the project by the City Council. DISCUSSION: The work has been completed and staff has inspected the project and is satisfied with it. All that remains to be done is to record the Notice of Completion with the County Recorder signifying the completion of the project and the City Council's acceptance of the project. OPTIONS: Accept the project on behalf of the City and authorize the Notice of Completion to be signed by the Mayor and recorded by the City Clerk. Do not accept the project on behalf of the City. FISCAL IMPACT: None $ Account Number: Comments:

SUGGESTED MOTIONS: Move to accept the Parallel Drive Water Main Expansion Project as complete and authorize the Notice of Completion to be signed by the Mayor and recorded by the City Clerk. Attachments: Notice of Completion

Meeting Date: 10/16/2012

Page 1

Agenda Item #IV.D

RECORDING REQUESTED BY: City Council, City of Lakeport

Complimentary recording requested pursuant to Government Code Section 27383

WHEN RECORDED MAIL TO: City of Lakeport 225 Park Street Lakeport, CA 95453

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT: 1. I represent the owner of a fee simple interest in the real property (Property) described in paragraph 5. 2. The name and address of the owner of Property is: City of Lakeport, 225 Park Street, Lakeport, CA 95453. 3. On the 1st day of June 2012, a work of improvement on the Property was completed as follows: City of Lakeport Parallel Drive Water Main Expansion Project, Bid 11-01 4. The name and address of the original contractor for the work of improvement was: Preston Pipelines, Inc. 8455 24th Ave., Sacramento, CA 95826. 5. The Property is situated in the City of Lakeport, County of Lake, State of California and described as follows: CITY OF LAKEPORT THE PUBLIC RIGHT-OF-WAY ON PARALLEL DRIVE BETWEEN TODD ROAD AND LINDA LANE
VERIFICATION {CCP 446} I declare under penalty of perjury under the laws of the State of California that the foregoing is true and th correct, this 18 day of September, 2012 at Lakeport, CA.

By: ________________________________ Mayor, City of Lakeport

CITY OF LAKEPORT
City Council City of Lakeport Municipal Sewer District

STAFF REPORT
RE: Cooperative Work Agreement, Lakeshore ER Project SUBMITTED BY: Scott Harter, City Engineer PURPOSE OF REPORT: Information only Discussion Action Item MEETING DATE: 10/16/2012

WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD: The Council is asked to approve staff request to Caltrans for a Cooperative Work Agreement, extension request, for the preliminary engineering phase of the Lakeshore Boulevard Emergency Repair project. BACKGROUND: The Lakeshore Boulevard ER project scope is to install approximately 550 feet of steel sheet pile along Lakeshore Boulevard running south from approximately Jones Street. This section of roadway is currently reinforced with rock slope protection and last failed during the winter of 2006. This project is a betterment project which seeks to improve the existing shore protection to prevent future failures of the roadway along this stretch. Staff is currently negotiating with a consultant for biological assessment services which will occur during the appropriate window next spring. Funding for the Preliminary Engineering phase of the project has been authorized and allocated in the amount of $47,806. Staff has struggled with getting this project under design and completing the environmental phase of it to date, however with the environmental phase of this project scheduled to be done in the spring of 2013, the project will continue to move forward through the design and construction phases. The funding for the Preliminary Engineering phase will lapse June 30, 2013 if not fully invoiced or if the lapsing date is not extended. A typical extension is for a period of 12 months which would extend the end of life for the PE funding to June 30, 2014. Caltrans recommends requesting a Cooperative Work Agreement (CWA) if the project phase is not expected to be fully invoiced by December 31, 2012. Caltrans requires Council action and concurrence for a CWA request. Since it is not likely that the phase will be fully invoiced by December 31, 2012 staff is requesting Council direction to request a CWA from Caltrans for the project. OPTIONS: Direct staff to proceed with a CWA request to Caltrans for the project Abandon the project and direct staff not to proceed with a CWA request. FISCAL IMPACT: None $ Account Number: Comments:

SUGGESTED MOTIONS: Move to direct staff to submit a Cooperative Work Agreement request to Caltrans for the Lakeshore Boulevard Emergency Repair project and authorize the City Engineer to sign it on behalf of the City. Attachments:
Meeting Date: 10/16/2012

None
Page 1 Agenda Item #VI.A

CITY OF LAKEPORT
City Council Lakeport Redevelopment Successor Agency City of Lakeport Municipal Sewer District

STAFF REPORT
RE: Approve Resolution Authorizing an Inter-fund Loan Between the General Fund and the Water Operations & Maintenance Fund for the Purchase of Green Ranch SUBMITTED BY: Daniel Buffalo, Finance Director PURPOSE OF REPORT: Information only Discussion Action Item MEETING DATE: 10/16/2012

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD: Review and approve Resolution authorizing and establishing the terms for an inter-fund loan between the City's general fund and the water operations and maintenance (O&M) fund for the purchase of the Green Ranch. BACKGROUND: The City receives a large portion of its potable water supply from two wells located on what is referred to as the Green Ranch. For several decades the City leased the property on which the wells are located; however, notice was received by the owner that the lease would be not be renewed at its scheduled termination date. To secure this vital source of water, the City agreed to purchase the land on which the wells are located and negotiated a price with the property owner of $700,000. Escrow closed on the sale agreement in July and title was transferred to the City. DISCUSSION: Because the City employs a pooled cash financial management system (one checking account and one savings account for all City funds), the City was able to finance the purchase of the Green Ranch without the need of the water fund to use private financing. The property belongs to the City but is considered an asset of the Water O&M fund (501), which is a considered an enterprise fund, self-sustaining and supported entirely by user fees. To save on financing costs associated with a private loan for the acquisition of the property, the City intended to use the general fund's reserve as the funding instrument until permanent financing could be secured. Staff has included the Green Ranch purchase as one of the capital projects listed in its water application for a USDA Rural Development low-interest, long-term loan. This loan between the general fund and the water O&M fund is intended to be temporary until the USDA loan has been approved and funded. The terms have been structured to allow for a three year repayment window at the competitive market rate of two (2) percent. Payment will be due in full at maturity (June 30, 2015, if not retired sooner. In the possible (though unlikely) event that the City is unsuccessful in securing USDA financing for the water fund, the three year repayment term will allow the City time to explore other financing options.
Meeting Date: 10/16/2012 Page 1 Agenda Item #VI.B

The loan resolution has been dated retroactively to June 30, 2012 to align it with the City's accounting record and predate the recorded transaction date of the Green Ranch purchase. If held to maturity, the general fund may realize interest revenue from the interfund loan of up to $43,248.46 at the stated two percent rate. If the USDA loan application is approved and funded, this interfund loan would be retired immediately upon receipt of that funding. Balance sheet information for the general fund and water enterprise as of June 30, 2012 are as follows:
City of Lakeport Balance Sheet - General Fund and Water Enterprise Year Ended June 30, 2012 General Fund ASSETS - current Cash and investments Receivables Inventory and prepaids Other short-term notes receivable Land held for resale Total LIABILITIES Accounts payable Other Total FUND BALANCE Nonspendable Restricted Committed Assigned Unassigned Total $ 2,038,342 434,193 4,955 414,821 407,964 3,300,275 89,944 135,574 225,518 827,740 1,287,566 959,451 $ 3,074,757 $ Water Enterprise 9,525 245,338 65,701 320,564 55,098 116,712 171,810 332,399 (183,645) 148,754

The general fund reserve has a spendabale portion of $2,247,017 as of June 30, 2012. This amount is what is available to loan to the water fund. OPTIONS: 1. Approve and authorize the interfund loan between the general fund and water O&M fund. 2. Do not approve but provide direction to staff. FISCAL IMPACT: None $700,000.00 Account Number: General fund and water O&M fund

SUGGESTED MOTIONS: Move to approve Resolution of the City Council of the City of Lakeport Authorizing an Inter-Fund Loan from the General Fund to the Water Fund for the Purpose of Funding the Acquisition of Certain Real Property (Green Ranch) and Establishing the Terms Under Which the Loan Will Be Repaid
Meeting Date: 10/16/2012 Page 2 Agenda Item #VI.B

Attachments:

Resolution of the City Council of the City of Lakeport Authorizing an Inter-Fund Loan from the General Fund to the Water Fund for the Purpose of Funding the Acquisition of Certain Real Property (Green Ranch) and Establishing the Terms Under Which the Loan Will Be Repaid

Meeting Date: 10/16/2012

Page 3

Agenda Item #VI.B

RESOLUTION NO. ____ (2012) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKEPORT AUTHORIZING AN INTER-FUND LOAN FROM THE GENERAL FUND TO THE WATER FUND FOR THE PURPOSE OF FUNDING THE ACQUISITION OF CERTAIN REAL PROPERTY AND ESTABLISHING THE TERMS UNDER WHICH THE LOAN WILL BE REPAID WHEREAS, the City of Lakeport (the City) is proceeding with acquiring certain real property commonly known as Green Ranch upon which certain existing wells are located (the Property), which will be part of the water supply, treatment and distribution system of the City (the Water Enterprise); and WHEREAS, the general fund of the City (the General Fund) has sufficient moneys to loan the Water Enterprise Fund (the Water Fund) in order to cause acquisition of the Property (the Inter-Fund Loan); and WHEREAS, the City attempted to secure bank financing for the acquisition of the Property has been unsuccessful due to unreasonable terms; and WHEREAS, the City Council of the City has determined that California Government Code section 53601(e) authorizes the City to invest its surplus funds in its own enterprise funds, and further that such an invest its surplus funds does not violate City Council policy on reserve fund balances or investments; and WHEREAS, the Inter-Fund Loan will be in accordance with the terms listed on attachment A to this resolution; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeport as follows: Section 1. Recitals. The Council hereby specifically finds and declares that each of the statements, findings and determinations of the City set forth in the recitals set forth above are true and correct and that the financing of the Property will result in significant public benefits. Section 2. Authorization of Inter-Fund Loan. The City Council hereby authorizes the Inter-Fund Loan from the General Fund to the Water Fund in accordance with the terms listed on attachment A to this resolution. Section 3. Certification. The City Clerk shall certify to the adoption of this Resolution. Section 4. Effective Date. This Resolution shall take effect retroactively to June 30, 2012.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Lakeport on the 16th day of October 2012, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ____________________________ STACEY MATTINA, Mayor ATTEST:

____________________________ JANEL M. CHAPMAN, City Clerk

ATTACHMENT A INTER-FUND LOAN TERM SHEET $700,000.00 Inter-Fund Loan from the General Fund to the Water Fund

Purpose

The Inter-Fund Loan proceeds shall be used exclusively for the purpose of facilitating the acquisition of certain real property commonly known as Green Ranch The Water Enterprise (Water Fund) The City (General Fund) $700,000.00 Two percent (2%), compounded monthly, payable at Maturity The Inter-Fund Loan will be repaid in full no later than June 30, 2015 Borrower has the right to prepay part or all of the outstanding Inter-Fund Loan amount at any time without penalty Net Revenues of the Water Enterprise (being total revenues less maintenance and operation expenses)

Borrower Lender Amount Interest Maturity Prepayment

Security