fairfield -suisun sewer district - fssd · pdf filefairfield -suisun sewer district 1010...

Fairfield-Suisun Sewer District 1010 Ch ad bourne Ro a d • Fairf ield, Calif orn ia 94 534 • (70 7) 4 29 -8 930 • www.f ssd.com

Gregory G. Ba atrup, G eneral M an ager

The Fairfield-Suisun Sewer District will provide reasonable disability-related modification or accommodation to a person with a disability who requires a modification or accommodation in order to participate in the meeting of the Board of Directors. Please contact us at (707) 429-8930 at least 48 hours before the meeting if you require such modification or accommodation.

Documents that are disclosable public records required to be made available under California Government Code Section 54957.5 (b) (1) and (2) are available to the public for inspection at no charge during business hours at our administrative offices located at the above address.

Members of the public may speak on any matter within the jurisdiction of the Fairfield-Suisun Sewer District by filling out a speaker’s request card, available on the table adjacent to the entrance to the board meeting room, and submitting the card to the District Clerk. Comments not listed on the agenda will be taken under Public Comments. Comments on matters appearing on the agenda will be taken during consideration of the item.

Teleconference Notice: Director Jane Day will be participating from a teleconference location at 301 Morgan Street, Suisun City, CA.

Board of Directors Meeting Agenda

Meeting Date: Monday, May 22, 2017

Meeting Place: 1010 Chadbourne Road Fairfield, California

Meeting Time: 6:00 p.m. 1. Roll Call 2. Pledge of Allegiance 3. Public Comments 4. Board Comments

5. General Manager Report

6. Consent Calendar/Action Items Page (a) Approve Minutes of Meeting of March 27, 2017 ..........................................................2 (b) Confirm Proof of Posting of Ordinance No.2017-02 & No.2017-03 ............................5

7. Discussion/Action Items

(a) Presentation on April 2017 Earth Day Activities

(b) Adopt Resolution No.2017-04, Accepting the Bid and Award the Contract for the 2017 Coatings Project to Abhe & Svoboda, Inc.in the Amount of $627,176 ..........8

(c) Adopt Resolution No.2017-05, Granting a Time Extension for the Completion of the Recycled Water Pipeline Construction in the 1974 Agreement ............................15

(d) Adopt Resolution No.2017-06, Authorizing Amendment No. 1 to the Agreement with Rancho Tolenas Corporation Concerning Construction of Northeast Fairfield Pump Station to Serve the Villages at Fairfield Development ....................................19

8. Information Items (a) Board Calendar ............................................................................................................27

-- End of Agenda --

Board of Directors Michael Segala, President

Harry price, Vice President

Pam Bertani

Jane Day

Mike Hudson

Catherine Moy

Pete Sanchez

Chuck Timm

Rick Vaccaro

Lori Wilson

http://www.fssd.com/

Fairfield-Suisun Sewer District minutes

1 0 1 0 C h a d b o u r n e R o a d F a i r f i e l d , C A T e l e p h o n e ( 7 0 7 ) 4 2 9 - 8 9 3 0 w w w . f s s d . c o m

Date: March 27, 2017 Meeting Place: 1010 Chadbourne Road, Fairfield, California Meeting Time: 6:00 p.m.

1. Roll Call. The meeting was called to order with the following members present: Directors Wilson(arrived at 6:04 p.m.), Vaccaro, Sanchez, Timm, Day (by teleconference), Bertani, Hudson, Price,and Segala. Director Moy was absent.

2. Pledge of Allegiance was led by Director Timm.

3. Public Comments - No general comments.

4. Board Comments/CASA Reports

Directors Sanchez and Hudson submitted written reports regarding their attendance at the CASA Policy Forum in Washington D.C. Director Hudson additional gave an oral report, he noted that the learning sessions were valuable and speakers were very knowledgeable. The other Directors had no general comments.

5. General Manager Report

General Manager Baatrup reported that the District had been recognized, for the 18th consecutive year, for Excellence in Financial Reporting by the Government Finance Officers Association (GFOA). Additionally Mr. Baatrup gave a brief summary of his report on the Draft Rule 11-18 from the Bay Area Air Quality Management District (BAAQMD). The rule is BAAQMD’s effort to protect public health from toxic air pollution from existing facilities.

6. Consent Calendar/Action Items(a) Minutes of Meeting of January 23, 2017(b) Confirm Proof of Posting of Ordinance No.2017-01

Upon motion by Director Price, seconded by Director Timm, the Consent Calendar itemswere approved/adopted by the following roll call vote:

AYES: Wilson, Vaccaro, Sanchez, Timm, Day, Bertani, Hudson, Price, and SegalaNOES: NoneABSENT: Moy

7. Discussion/Action Items(a) Staff Report on Proposed Sewer Service Charges, and Capacity Fees, and Budget.

General Manager Baatrup gave a presentation and answered questions from the Directors.

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Minutes March 27, 2017 Page 2

i. Conduct a Public Hearing on the proposed Sewer Service Charges and Capacity Fees. George Guynn (Suisun City), Joe Green-Heffen (Fairfield), Leann Thomas (Fairfield), Jim Wise (Suisun City), and Adam Young (Fairfield) all made comments regarding the proposed Sewer Service Charges and Capacity Fee increase and Budget.

ii. Consider the Written Comments and the Testimony Provided During the Public

Hearing.

General Manager Baatrup responded to comments and questions from the Directors regarding the Proposed Sewer Service Charges, and Capacity Fees, and Budget.

iii. Adopt Ordinance No.2017-02, Establishing Sewer Service Charges and Capacity Fees

for Fiscal Years 2017/18 & 2018/19, Amending Ord. No.05-01.

Upon motion by Director Price, seconded by Director Day, Ordinance No.2017-02, establishing sewer service charges and capacity fees for fiscal years 2017/18 & 2018/19, amending Ord. No.05-01, was adopted by the following roll call vote: AYES: Wilson, Timm, Day, Hudson, Price, and Segala NOES: Vaccaro, Sanchez, and Bertani ABSENT: Moy

iv. Adopt Ordinance No.2017-03, An Ordinance Amending Ord.No.88-2 and Adopting

without Increase the Fairfield-Suisun Sewer District Annual Storm Drain Maintenance Service Charges

Upon motion by Director Sanchez, seconded by Director Hudson, Ordinance No.2017-03, an Ordinance amending Ord.No.88-2 and adopting without increase the Fairfield-Suisun Sewer District annual storm drain maintenance service charges was adopted by the following roll call vote: AYES: Wilson, Vaccaro, Sanchez, Timm, Bertani, Hudson, Price, and Segala NOES: Day ABSENT: Moy

v. Adopt Resolution No.2017-02, Approving Revised Fiscal Year 2016/17 and Fiscal

Years 2017/18 and 2018/19 Revenue and Expense Projections and Long Term Financial Plan.

Upon motion by Director Price, seconded by Director Timm, Resolution No.2017-02, approving revised fiscal year 2016/17 and fiscal years 2017/18 and 2018/19 revenue and expense projections and long term financial plan was adopted by the following roll call vote: AYES: Wilson, Vaccaro, Sanchez, Timm, Day, Bertani, Hudson, Price, and Segala NOES: None ABSENT: Moy

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Minutes March 27, 2017 Page 3

(b) Adopt Resolution No.2017-03, Re-adopting the Investment Policy

Upon motion by Director Price, seconded by Director Sanchez, Resolution No.2017-03, re-adopting the Investment Policy was adopted by the following roll call vote: AYES: Wilson, Vaccaro, Sanchez, Timm, Day, Bertani, Hudson, Price, and Segala

NOES: None ABSENT: Moy

8. Information Items

(a) Board Calendar- Director Timm stated that the process of evaluating the General Manager’s performance will begin in April, to ensure that the Directors have sufficient time to complete and submit their evaluation forms to Director Segala.

The meeting adjourned at 7:53 p.m. Respectfully submitted, __________________________ President ATTEST: ________________________ District Clerk

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May 17, 2017 MEMORANDUM TO: Board of Directors THROUGH: Greg Baatrup, General Manager FROM: Melissa Espinoza, Senior Office Assistant SUBJECT: Proof of Posting, Ordinance No. 2017-02 & No.2017-03 Recommendation Confirm proof of posting that Ordinance No. 2017-02 and No.2017-03 were properly posted. Background On March 27, 2017 the District Board of Directors adopted Ordinance No.2017-02, establishing sewer capacity and service charge Ordinance for fiscal years 2017/18 & 2018/19, amending Ordinance No. 05-01 and Ordinance No.2017-03, an Ordinance amending Ordinance No. 88-2 and adopting without increase the Fairfield-Suisun Sewer District annual storm drain maintenance service charges. As provided in the Section 59 of the District's Enabling Act, Ordinance No.2017-02 and No.2017-03 shall each be posted for one week in three public places in the City of Fairfield and the City of Suisun City, and take effect upon expiration of the week of such posting. The attached proof of posting declares that Greg Baatrup affirms the postings were properly made. This action will serve as the Board's finding that the above declaration is conclusive evidence that the posting was properly made. Excerpt from Enabling Act: "Sec. 59. The district may adopt all accessary and proper regulations for all sanitary purposes not in conflict with the laws of this State. Any person who violates any regulation of the district is guilty of a misdemeanor. A regulation of the board shall be adopted by ordinance and shall be posted for One week in three public places in each of the cities and shall take effect upon expiration of the week of such posting. A subsequent finding of the board, entered in its minutes, that posting has been made is conclusive evidence that the posting has been properly made."

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PROOF OF POSTING

I am a citizen of the United States and a resident of the County of Contra Costa;I am over the age of eighteen years and not a party to the action taken by the Fairfield-Suisun Sewer District Board that is the subject of this posting; my business address is1 0 10 Chadbourne Road, Fairfield, California, 945 34-9700.

On March 28, 2017, I caused to be posted the Fairfield-Suisun Sewer District OrdinanceNo. 2017-02, Establishing Sewer Capacity and Service Charge Ordinance for FiscalYears 2017/18 & 201 8/1 9, Amending Ordinance No.05-0 1 , in the following locations fora period of not less than one week:

Fairfield City HallFairfield Civic Center LibrarySolano County Administration Center

Suisun City HallSuisun City LibraryJoseph Nelson Community Center

I, Greg Baatrup, declare under penalty of perjury that the foregoing is true andcorrect.

EXECUTED on March 28, 2017, at Fairfield, California.

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PROOF OF POSTING

I am a citizen of the United States and a resident of the County of Contra Costa;I am over the age of eighteen years and not a party to the action taken by the Fairfield-$uisun Sewer District Board that is the subject of this posting; my business address is10 10 Chadbourne Road, Fairfield, California, 945 34-9700.

On March 28, 2017, I caused to be posted the Fairfield-Suisun Sewer District OrdinanceNo. 2017-03, An Ordinance Amending Ordinance No.88-2 and Adopting WithoutIncrease the Fairfield-Suisun Sewer District Annual Storm Drain Maintenance ServiceCharges, in the following locations for a period of not less than one week:

Fairfield City HallFairfield Civic Center LibrarySolano County Administration Center

Suisun City HallSuisun City LibraryJoseph Nelson Community Center

I, Greg Baatrup, declare under penalty of perjury that the foregoing is true andcorrect.

EXECUTED on March 28, 2017, at Fairfield, California.

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FAIRFIELD-SUISUN SEWER DISTRICT 1 0 1 0 C H A D B O U R N E R O A D • F A I R F I E L D , C A L I F O R N I A 9 4 5 3 4 • ( 7 0 7 ) 4 2 9 - 8 9 3 0 • W W W . F S S D . C O M

G R E G O R Y G . B A A T R U P , G E N E R A L M A N A G E R

May 16, 2017 CM-1702.10 MEMORANDUM TO: Board of Directors THROUGH: Greg Baatrup, General Manager FROM: Ron Hipkiss, Senior Environmental Engineer SUBJECT: 2017 Coatings Project - Award of Contract Recommendation Adopt Resolution No.2017-04, approving the withdrawal of Euro Style Management’s bid and, awarding the contract to the second lowest bidder, Abhe & Svoboda, Inc (attachment #2). Background The Secondary Clarifiers are an important component of the wastewater treatment process. Their function is to remove solids from the waste stream after biological treatment. These basins have submerged rotating mechanisms that are constructed from mild steel. Normal service life for this type of coating in submerged conditions is 8 years. Through occasional spot repairs, the coatings have served more than 13 years. During the summer 2016 inspection, it was determined that spot repairs would not provide enough protection and a full recoat is needed. If left unrepaired, the coating system would further degrade, the steel mechanisms would fail, and require full replacement costing several million dollars. The ideal coating period is during the summer season, and with a need to keep certain equipment in service, District staff prepared a design for coating rehabilitation for two of the four Secondary Clarifiers this year. The other two will be coated next year. While the basins are offline and disassembled for the coating application, worn out components will be replaced as part of a planned overhaul procedure. In addition to the Secondary Clarifier work, other coating maintenance work is included in the bid package. Two valve vaults will have their aged coatings replaced and the cast iron bearing assembly on Primary Clarifier #5 will be recoated to protect the mechanism. Discussion Four bids were received on Friday, May 12, 2017 (a summary of the bids is attached- attachment #1). Shortly after the bids were opened and read, the apparent low bidder, Euro Style Management, sent a letter requesting that their bid be withdrawn from consideration due to an

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2017 Coatings Project - Award of Contract Memo May 16, 2017 Page 2 of 2

error in their bid. They claimed that they failed to include the rehabilitation parts and labor in their estimate. The parts supplier confirmed that Euro Style Management did not request a quote for that portion of the work. Euro Style Management has satisfied the requirements of 5100 et seq. of the Public Contracts Code to have their bid withdrawn from consideration for this project.

Staff has reviewed the bids from the second low bidder, Abhe & Svoboda, and finds their bid to be complete.

Fiscal Impact Abhe & Svoboda’s bid for the project is $627,176 and closely matches the Engineer’s estimate of $625,000. Adequate funds are available within the District’s Major Maintenance and Upgrade account of the Wastewater Operations Fund.

Attachments: #1 – Bid Summary #2 – Resolution No.2017-04 #3 – Agreement

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1 Subcontractors: None

2 Subcontractor: None

3 Subcontractors: Monterey Mechanical, Inc., Premier Scaffold, Inc.

4 Subcontractors: Jeffco Painting and Coating

* withdrawal requested

$372,000 *

Fairfield-Suisun Sewer District1010 Chadbourne RoadFairfield, CA 94534

BID SUMMARY

PROJECT: 2017 Coatings Project - No. 1702

Friday May 12, 2017 10:00 A.M.

$625,000

Euro Style Management

Abhe & Svoboda, Incorporated

BID AMOUNTCOMPANY

BIDS OPENED:

ENGINEER'S ESTIMATE:

SUMMARY:

(Date) (Time)

$627,176

GSE Construction, Incorporated $1,135,000

F.D. Thomas, Incorporated $1,058,700

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Attachment #1

FAIRFIELD-SUISUN SEWER DISTRICT RESOLUTION NO. 2017-04

A RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR THE 2017 COATINGS PROJECT TO ABHE & SVOBODA, INC. IN THE AMOUNT OF $627,176

WHEREAS, staff prepared a design and in accordance with Public Contracts Code, advertised for bids which were received on May 12, 2017, and which were publicly read; and

WHEREAS, four bids were received ranging from $372,000 to $1,135,000; and

WHEREAS, the contractor submitting the apparent low bidder discovered errors in their bid; they promptly notified the District of their errors; they report their error was made in filling out the bid and not due to error in judgment or to carelessness in inspecting the site of the work, or in reading the plans or specifications; and, they requested to be relieved of their bid obligations because of their error which staff has confirmed to be consistent with the provisions of PCC 5103; and

WHEREAS, the second low bidder submitted a complete bid document; and

WHEREAS, the project was contemplated and the contractors bid is consistent with the funds budgeted in the District’s budget.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FAIRFIELD-SUISUN SEWER DISTRICT:

1. As provided by the Public Contracts Code, Euro Style Management’s request to be relieved oftheir bid obligations is granted.

2. The bid from Abhe & Svoboda, Inc. for the 2017 Coatings Project in the amount of $627,176 isfound to be the lowest responsive, responsible bid.

3. The Board hereby awards the contract for construction of the 2017 Coatings Project to Abhe &Svoboda, Inc.

4. The President of the Board of Directors is hereby authorized and directed to sign the contractagreement with Ahbe & Svoboda, Inc. for the 2017 Coatings Project.

5. The General Manager is hereby authorized and directed to do all things necessary and proper toimplement this resolution.

PASSED AND ADOPTED THIS 22nd day of May 2017, by the following vote:

AYES: Directors

NOES: Directors

ABSENT: Directors

President ATTEST:

District Clerk

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Attachment #2

2017 COATINGS PROJECT AGREEMENT April 17, 2017 PAGE 00500-1

SECTION 00500

AGREEMENT

THIS AGREEMENT, effective as of the 22 day of May in the year 2017, is made by and between the FAIRFIELD-SUISUN SEWER DISTRICT (hereinafter called OWNER) and ABHE & SVOBODA, INC (hereinafter called CONTRACTOR). OWNER and CONTRACTOR, in consideration of the mutual covenants and conditions hereinafter set forth, agree as follows:

ARTICLE 1. WORK

CONTRACTOR shall complete the WORK as specified or indicated under the Bid Schedule(s) of the Bid Forms of and in accordance with the Contract Documents entitled “2017 COATINGS PROJECT.” Contractor shall furnish all materials, equipment, tools and labor as necessary to perform the WORK, generally described as follows:

The 2017 Coatings Project includes disassembly, preparation and recoating of the steel structures of two secondary clarifiers (#3 and #4), the cast iron gear assembly of Primary Clarifier #5, and all steel in various pipe/valve vaults as indicated in the Contract Documents. The work also includes the rehabilitation/replacement of the drive mechanisms and wear items of Secondary Clarifiers Nos. 3 and 4 and the replacement of flexible components of the influent well baffles.

ARTICLE 2. CONTRACT TIME

All WORK shall be completed within 120 successive calendar days from the commencement date stated in the Notice to Proceed.

ARTICLE 3. LIQUIDATED DAMAGES

OWNER and CONTRACTOR recognize that time is of the essence of this Agreement and that OWNER will suffer financial loss if the WORK is not completed within the time specified in Article 2 herein, plus any extensions thereof allowed in accordance with Article 12 of the General Conditions. They also recognize the delays, expense, and difficulties involved in proving in a legal preceding the actual loss suffered by OWNER if the WORK is not completed on time. Accordingly, instead of requiring any such proof, OWNER and CONTRACTOR agree that as liquidated damages for delay (but not as a penalty) CONTRACTOR shall pay OWNER $250 for each calendar day after the contract completion as specified in Article 2 herein that the WORK is not substantially complete in accordance with the Contract Documents and to the satisfaction of OWNER. The liquidated damages are intended to compensate OWNER only for the direct administrative costs OWNER will incur because of CONTRACTOR’s delay, and are not intended to compensate OWNER for consequential damages, damages resulting from the claim of a third party, or other damages.

Attachment #3

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ARTICLE 4. CONTRACT PRICE

OWNER shall pay CONTRACTOR for completion of the WORK in accordance with the Contract Documents in current funds the Contract Price of $627,176 (SIX HUNDRED TWENTY SEVEN THOUSAND ONE HUNDRED SEVENTY SIX DOLLARS) based on the Total Bid Price named in the Bid Schedule for the “2017 COATINGS PROJECT.”

ARTICLE 5. PAYMENT PROCEDURES

CONTRACTOR shall submit Applications for Payment in accordance with Article 14 of the General Conditions. Applications for Payment will be processed by the OWNER as provided in the General Conditions.

ARTICLE 6. CONTRACT DOCUMENTS

The Contract Documents which comprise the entire agreement between OWNER and CONTRACTOR concerning the WORK consist of this Agreement (pages 00500-1 to 00500-3, inclusive) and the following attachments to this Agreement, which are incorporated herein by this reference:

• Instructions to Bidders

• Bid Forms including the Bid Schedule(s), Information Required of Bidder, Bid Bond, and allrequired certificates, statements and affidavits

• Performance Bond

• Payment Bond

• General Conditions

• Supplementary General Conditions

• Technical Specifications

• Addenda numbers 1 to 2

• Change Orders and Field Orders that may be issued after Effective Date of the Agreementand are not attached hereto

There are no Contract Documents other than those listed in this Article 6. The Contract Documents may only be amended by Change Order or Field Order as provided in the General Conditions.

ARTICLE 7. MISCELLANEOUS.

Terms used in this Agreement, which are defined in Article 1 of the General Conditions, will have the meanings indicated in the General Conditions.

No assignment by a party hereto of any rights or interests in this Agreement will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation monies that may become due and monies that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no

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assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents.

Copies of the prevailing rate of per diem wages are on file at OWNER’S principal office, and shall be made available to any interested party on request.

OWNER and CONTRACTOR specifically agree that there is no agreement between them submitting any dispute, claim, cause of action or controversy, which may arise under this Agreement or the Contract Documents, to any form of binding arbitration. Any such dispute, claim, cause of action or controversy can only be determined by a written agreement of the parties or by a court of competent jurisdiction.

IN WITNESS WHEREOF, OWNER and CONTRACTOR have caused this Agreement to be executed the day and year first above written.

OWNER:

FAIRFIELD-SUISUN SEWER DISTRICT

By ________________________________

CONTRACTOR:

ABHE & SVOBODA, INC.

By ________________________________ Michael Segala President, Board of Director

David Grant Area Manager

Address for giving notices: Address for giving notices:

Fairfield-Suisun Sewer District Abhe & Svoboda, Inc.

1010 Chadbourne Road 880 Tavern Road

Fairfield, CA 94534 Alpine, CA 91901

License No. 506526

- END OF SECTION -

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May 18, 2017 WR-150.10

MEMORANDUM

TO: Board of Directors

THROUGH: Gregory G. Baatrup, General Manager

FROM: Talyon Sortor, Assistant General Manager

SUBJECT: Recycled Water Pipeline Time Extension

Recommendation Adopt Resolution 2017-05, approving a two-year deferral on the City of Fairfield’s obligation to complete the recycled water pipeline (attachment #2).

Background In 2002, the District agreed to amend the 3-party 1974 Agreement (Agreement) between the District, the City of Fairfield (Fairfield), and the Solano Irrigation District (SID), that in part controls the rights to use the first 12 million gallons of recycled water produced by the District’s treatment plant. That amendment transferred the rights from SID to Fairfield and obligated Fairfield to construct, own, operate, and maintain a recycled water pipeline from Solano Business Park to the City’s Linear Park by October 2017. The amended agreement included a provision in which Fairfield could request, and the District Board of Directors could approve, a deferral of up to ten years on the deadline to complete the pipeline.

The most recent Urban Water Management Plans (URMP) for both the City of Fairfield and SID acknowledge the potential use for recycled water, but also acknowledge the implementation is economically infeasible as compared to other water supply options. The URMP reports that a future recycled water infrastructure investment is unnecessary until at least 2025. In addition, there are no regulatory drivers that require the District to recycle more of its treated wastewater. Therefore, the parties agree there are no near-term regulatory, environmental, or economic drivers requiring the Fairfield to build a recycled water pipeline by October 2017.

For several years, the parties have been working to amend the agreement to better recognize the recycled water interests of all parties. In a March 14, 2017, the District received a letter (attachment #1) from the Fairfield Director of Public Works where the City is requesting a ten-year deferral on the deadline to build the pipeline. The letter acknowledges that the agreement will be amended within two years, including the intent to restructure the obligation to build the

15

Recycled Water Pipeline Time Extension Memo May 18, 2017 Page 2 of 2

recycled water infrastructure. As noted in the letter (attachment #1), the agreement is complex and requires the legal review of the proposed amendments by all three parties. As stated above, the amendment intends to address each parties future recycled water responsibilities. Therefore, staff is recommending the Board approve a deferral on the pipeline completion provision, with the expectation that future obligations will be addressed by amendment over the next two years.

Attachments: #1 – City of Fairfield Letter #2 – Resolution No.2017-05

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i—t-—-—”

iL

CITY OF FAIRFIELDFounded 1856 Incorporated December 12, 1903

PUBLIC WORKS DEPARTMENT

Gregory G Baatrup, General ManagerFairfield-Suisun Sewer District1010 Chadbourne RoadFairfield, California 94534

SUBJECT: 2002 Amended and Restated 1974 Agreement

Dear Greg:

MAR 16 201?

Section III of the 2002 Amended and Restated 1974 Agreement (Agreement) between theSolano Irrigation District (SID), City of Fairfield (City) and Fairfield-Suisun Sewer District(FSSD) outlines the provisions for Reclaimed Water between the parties. Both the City andFSSD have been working with SID to amend the Agreement to remove FSSD as a signatory.This effort is progressing slower than anticipated due to the complexity of the Agreement andthe need for legal review. One of the provisions of the current Agreement requires the City ofFairfield to construct certain recycled water infrastructure to prior to October 1, 2017. TheAgreement also allows the FSSD Board to grant a 10-year extension to complete theserecycled water capital improvements.

Due to slower than anticipated growth in the City and decreasing water use throughout thecommunity, the City has not had the need to make these recycled water capital investmentsto date and has found that they are cost-prohibitive in the current economic climate. Inaddition, water conservation policies currently being considered at the State level could havea dramatic impact on the viability and characteristics of a reclaimed water system.

Pursuant to Section Ill, Paragraph F of the Agreement, the City is requesting that the recycledwater improvements required under the Agreement be deferred for an additional 10 years. Itis anticipated that SID, the City and FSSD will amend the Agreement in the near future (withintwo yeats) to remove FSSD from the Agreement, and that the City and FSSD will enter into aseparate agreement that will re-define future roles and responsibilities of the City and FSSDas it pertains to the development of recycled water infrastructure locally.

I appreciate your consideration of this request. If you have any questions, please do nothesitate to call me.

I..

Finance & Technology707428.7498

Fire707.428.7375

I..

Police707.428.7362

www.fairfield.ca.gov

March 14, 2017RECEIVED

FAiRFIELD-SUISUNSEWER DISTRiCT

Home ofTravis Air Force Base

COUNCIL

MayorHarry T. Price707.428.7395

Vice-MayorChuck Timm

707.429.6298

Councilmembers707.429.6298

Pam Bertani

Catherine Moy

Rick Vaccaro

I• •

City ManagerDavid A, White707.428.7400

I..

City AttorneyGregory W. Stepanicich707.428.7419

‘I.

City ClerkKaren L. Rees707.428.7384

I..

City TreasurerArvinda Krishnan707.428.7498

DEPARTMENTS

City Managers Office707.428.7400

I..

Community Development707428.7461

Parka & Recreation707.428.7465

Sincerely,,

GE R. HICKS, P.E.ctor of Public Works

Public Works707.428.7485

cc: David White, City ManagerJulie Lucido, Assistant Director of Public Works — City EngineerFelix Riesenberg, Assistant Director of Public Works - Utilities

CITY OF FAIRFIELD ii. 1000 WEBSTER STREET ii. FAIRFIELD, CALIFORNIA 94533-4883 •..

S:\Public Works Files\GRH\Correspondence GRH\CORRESPONDENCE WORD DOCS\2017\2017 Letters.docx

Attachment #1

17


A RESOLUTION GRANTING A TIME EXTENSION FOR THE COMPLETION OF THE RECYCLED WATER PIPELINE CONSTRUCTION IN THE 1974 AGREEMENT

WHEREAS, Section III of the 2002 Amended and Restated 1974 Agreement between the Solano Irrigation District, City of Fairfield, and Fairfield-Suisun Sewer District obligates the City of Fairfield to construct, own, operate, and maintain a non-potable water transmission extension project (hereinafter “recycled water pipeline”) from Solano Business Park to Linear Park by October 2017; and,

WHEREAS, the City of Fairfield has requested a deferral on the deadline to complete the recycled water pipeline to allow for the Agreement to be amended; and,

WHEREAS, as noted in the May 18, 2017 staff report, there are no near-term regulatory, environmental, or economic drivers requiring the City of Fairfield to build a recycled water pipeline by October 2017; and,

WHEREAS, the Board of Directors finds that the deferral serves the public purpose of the District and is in the best combined interest of the City of Fairfield and the District.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FAIRFIELD-SUISUN SEWER DISTRICT:

1) The Board of Directors grants a deferral of the completion of the recycled water pipelinefrom Solano Business Park to Linear Park required by the 2002 Amended and Restated 1974Agreement for two years.

2) The General Manager is hereby authorized and directed to do all things necessary and properto implement this resolution.

PASSED AND ADOPTED this 22nd day of May 2017, by the following vote:

AYES: Directors:

NOES: Directors:

ABSENT: Directors:

President

ATTEST:

District Clerk

Attachment #2

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May 17, 2017 PE-0714.50

MEMORANDUM


THROUGH: Greg Baatrup, General Manager

FROM: Meg Herston, Environmental Compliance Engineer

SUBJECT: Amendment to January 24, 2011 Villages Agreement

Recommendation Adopt Resolution No.2017-06, approving Amendment No.1 (attachment #1) to the January 24, 2011 Agreement with Rancho Tolenas Corporation (attachment #2).

Background In 2008, the District entered into an agreement with NC Fairfield Development, now Rancho Tolenas Corporation (Developer), to establish terms and conditions for the construction of sewer infrastructure to serve the Villages development (Project) in northeast Fairfield.

Following a Developer’s proposal to construct the Project in phases, the timing for sewer improvements needed to be established and the 2008 agreement was superseded in 2011. In addition to provisions specifying the timing of Project approvals and the construction of the North East Fairfield Pump Station (NEFPS), the 2011 agreement requires the Developer to reimburse the District for NEFPS design costs if construction of the sewers associated with the Pump Station is not started by May 2017.

Discussion The proposed 2017 amendment extends the deadline for commencement of NEFPS sewer work from May 2017 to May 2022 and establishes an interim deadline for the Clay Bank Relief Sewer (discussed below). The revised deadlines re-align the schedule for the NEFPS with the overall Project schedule.

The existing sewer in Clay Bank Road is capacity limited, and a relief sewer is necessary to accommodate new discharges. The amendment (attachment #1) establishes an October 31, 2018 deadline for construction completion of the Clay Bank Relief Sewer, thereby putting the relief sewer into service with Phase I of the Project and alleviating a bottleneck within the District’s sewer system.

District Counsel has reviewed the 2017 amendment.

Attachments: #1 – Amendment No.1 to Agreement with Rancho Tolenas Corporation #2 – Resolution No.2017-06

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1

Amendment No. 1 to Amended and Restated Agreement between Rancho Tolenas Corp. and the

Fairfield-Suisun Sewer District Concerning Construction of Pump Station to Serve the

Villages at Fairfield Development (“Amendment”)

This Amendment is dated _____________, 2017 and amends that certain Amended and Restated Agreement dated January 24, 2011 (the “Agreement”) by and between Rancho Tolenas Corp. (“Developer”) and Fairfield-Suisun Sewer District (“District”). All capitalized terms in this Amendment shall have the same meaning given those terms in the Agreement unless otherwise defined herein.

Recitals

WHEREAS, Developer has commenced the grading of the first phase of the Modified Villages Project (the “Project Grading”); and

WHEREAS, District and Developer desire to amend the Agreement to (i) phase its design and construction of the Project Sewer Work as identified on Exhibit “A” attached hereto consisting of Segments 1, 2, 3, 5, 6A and 6B (each a “Segment”) and (ii) provide for District’s design and construction of the North Fairfield Pump Station (“NFPS”) with the final phase of the Project Sewer Work, all of which is consistent with the Developer’s obligations for the construction of the Project Sewer Work in the Second Amended and Restated Development Agreement between Developer and the City of Fairfield for the overall Villages Project recorded January 4, 2016 as Document No. 201600000233 (the “DA”); and

WHEREAS, the Project Sewer Work is also included by the City in the Northeast Area Fees Report of April 1, 2013; and

WHEREAS, Developer (i) has provided District with the Developer Notice of the commencement of construction of Segments 1, 2, 3, and 6A, (ii) has submitted final Project Plans to the District for Segments 1, 2 and 6A, and (iii) intends to submit Project Plans for Segment 3 to the District within forty-five (45) days after the Effective Date of this Amendment; and

WHEREAS, District has accepted and approved the Project Plans for Segments 1, 2 and 6A as complete and in conformity with the District Design Standards and executed those Project Plans and Developer has commenced or will commence construction of Segments 1, 2 and 6A within thirty (30) days after the Effective Date; and

WHEREAS Developer has (i) executed or will execute, immediately following approval by the City, the Improvement Agreements which include the Project Sewer Work for Segments 1, 2, 3, and 6A, and (ii) posted or will post with the City Bonds to secure that

Attachment #1

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Project Sewer Work together with other improvement work included in those Improvement Agreements as required by the City, which Improvement Agreements and Bonds will satisfy the requirements of Section 5 of the Agreement for Segments 1, 2, 3, and 6A; and

WHEREAS, Developer has requested that District agree to extend the date for repayment (if applicable) of the District’s $254,450 cost of the initial NFPS design from May 1, 2017 to five (5) years from the Effective Date of this Amendment (the “Reimbursement Date”) if the construction of Segments 5 and 6B has not commenced by that Reimbursement Date and District is willing to grant that extension provided Developer agrees to continue making the annual NFPS Interest payments until the earlier of (i) commencement of Phase 3 of the Project Sewer Work or (ii) commencement of the NFPS construction, as described in Sections 2 and 7 below; and

WHEREAS, the District also requests that Developer fund the cost of any annual hydro-flushing of Segments 1, 2, and 6A as deemed necessary by the District until Segments 3, 5 and 6B are completed by Developer.

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, including the terms of this Amendment and the Agreement, the receipt of which consideration is hereby acknowledged, Developer and the District agree to amend the Agreement as follows:

Amendment

1. The Recitals are hereby made a part of this Amendment. The term “EffectiveDate” used in the Recitals means the date that this Agreement is approved for executionby the District’s Board of Directors.

2. Developer and District agree that the Project Sewer Work may be designed andconstructed, and the Improvement Agreement and Bonds required by Section 5 of theAgreement executed and posted with the City, in the following phases (each a “Phase”):

(i) Phase 1 – Segments 1, 2, and 6A;

(ii) Phase 2 – Segment 3;

(iii) Phase 3 - Segments 5 and 6B;

Construction of Phase 1 shall commence no later than thirty (30) days after the Effective Date and be completed within twelve (12) months after commencement of the construction.

Construction of Phase 2 shall commence within thirty (30) days after District’s and City’s approval of the Project Plans for Segment 3 of the Project Sewer Work and be completed within twelve (12) months after commencement of the construction but no later than October 31, 2018.

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Construction of Phase 3 shall commence the earlier of (i) ninety (90) days after the commencement of sewer construction within Unit 2 of Village I or within Lots H or I of Village II, or (ii) the date required by the City in the DA, and be completed within twelve (12) months after commencement of construction.

During construction of the Project Sewer Work, Developer shall require that its Contractor and any subcontractors maintain applicable insurance with minimum coverage limits commensurate with the value of the Project Sewer Work, and Developer shall ensure that District is an additional insured on insurance required from its Contractor and any subcontractors. For CGL coverage subcontractors shall provide coverage with a format least as broad as CG 20 38 04 13.

Any terms or conditions in the Agreement which require or contemplate that the entire Project Sewer Work be designed and then constructed all at the same time, rather than in phases as provided above, including, without limitation, Sections 2, 3, 4, 5, 9 and 11, are hereby amended to provide for and permit the phasing set forth above.

3. District shall, use its best efforts to complete its review and approval of theProject Plans for Segment 3 within thirty (30) days after receipt of the Project Plans.

4. District and Developer agree that commencing upon the completion of Segments1, 2 and 6A, and until completion of Segments 3, 5 and 6B, District may, if it deemsnecessary for the safety and proper operation of the Project Sewer Work, hydro-flush theProject Sewer Work and the cost of this flushing shall be paid by the Developer toDistrict within thirty (30) days after written demand by District. Developer shall not berequired to reimburse District for more than one (1) hydro-flushing every twelve (12)months after the Effective Date.

5. Section 3 of the Agreement is amended to provide that (i) the District shall beginredesign of the NFPS after the Project Plans for Phase 3 (Segments 5 and 6B) areapproved by the District.

6. Section 9 of the Agreement is amended to now provide (i) that District commencethe construction of the NFPS no later than sixty (60) days after Developer commencesconstruction of Phase 3 of the Project Sewer Work and (ii) that the NFPS CompletionDate shall be the later of (x) twelve (12) months after District commences construction ofthe NFPS or (y) sixty (60) days after Developer completes construction of Phase 3 of theProject Sewer Work.

7. Section 11 of the Agreement is amended and restated in its entirety as follows: :“ “11. For that period that commenced May 1, 2009 and ending upon the earlier of (i)Developer’s commencement of construction of Phase 3 of the Project Sewer Work, or (ii)District’s commencement of construction of the NFPS (the “Interest Period”), interestexpense at an annual rate of four percent (4.0%) shall accrue based upon the District’s$254,450 cost of the initial NFPS design. Interest payments equal to $10,178 (for each

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annual period May 1 to April 30) shall be made annually by Developer on or before May 31st of each calendar year during the Interest Period (the “NFPS Interest”). All payments of NFPS Interest applicable to the periods of May 1, 2009 through and including April 30, 2017 have been paid. The next annual payment of NFPS Interest shall be due on May 31, 2018. The final NFPS Interest payment shall be due thirty (30) days after expiration of the Interest Period. If the Developer cancels the Project Sewer Work, or fails to commence Phase 3 of Project Sewer Work within five (5) years of the Effective Date of this Amendment No. 1 to the Agreement, then Developer shall reimburse District’s $254,450 cost of the initial NFPS design plus any unpaid but accrued interest prorated through the cancellation date.”

8. Section 16 of the Agreement is amended to update Developer’s address for Noticepurposes as follows:

To Developer: Rancho Tolenas Corp. c/o Lewis Management Corp. 9216 Kiefer Blvd. Sacramento, CA 95826 Attn: Douglas V. Mull

With copy to: Lewis Management Corp. P. O. Box 670 Upland, CA 91785-0670 1156 North Mountain Avenue Upland, CA 91786-3633 Attn: W. Bradford Francke, Esq.

9. This Amendment embodies the entire agreement between the parties heretoconcerning the subject of this Amendment and supersedes any prior understandings orwritten or oral agreements between the parties concerning such subject of thisAmendment.

10. Each party to this Amendment has fully participated in the negotiation anddrafting of this Agreement and has had the opportunity to be advised by counsel of itschoice with respect to the subject matter hereof. Accordingly, this Amendment shall beconstrued without regard to the rule that ambiguities in a document are to be construedagainst the drafter.

11. Except as amended above, the Agreement remains in full force and effect.

12. This Agreement may be executed in multiple counterparts and by electronicsignature, each of which shall be deemed an original and all of which, taken together,shall constitute the complete agreement.

[SIGNATURES FOLLOW IMMEDIATELY ON NEXT PAGE]

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IN WITNESS WHEREOF, the parties have executed this Amendment, to be effective as of the date stated above, as evidenced by their respective signatures below.

FAIRFIELD-SUISUN SEWER DISTRICT

___________________________________ Board President

___________________________________ District Clerk

RANCHO TOLENAS CORP., a California corporation

By: ___________________________________ Name: John M. Goodman Title: Exec VP/CEO/CFO

WBF:av Y:\984\G2419 Villages at Fairfield\G2419Q Agreement with FSSD re Pump Station\Drafts\G2419 VAF Amendment #1 to A&R Pump Station (5-9-17) Draft#3 redline.docx

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EXHIBIT A Map of Project Sewer Work

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A RESOLUTION AUTHORIZING AMENDMENT NO. 1 TO THE AGREEMENT WITH RANCHO TOLENAS CORPORATION CONCERNING CONSTRUCTION OF NORTHEAST FAIRFIELD PUMP STATION TO SERVE THE VILLAGES AT

FAIRFIELD DEVELOPMENT

WHEREAS, on September 22, 2008, the Fairfield-Suisun Sewer District (District) and NC Fairfield Development Corporation entered into an agreement concerning construction of Pump Station to Serve the Villages at Fairfield Development; and,

WHEREAS, Rancho Tolenas Corporation has succeeded to the interest of NC Fairfield Development Corporation as the developer of the Villages: and,

WHEREAS, on January 24, 2011, the District and Rancho Tolenas Corporation entered into an amended and restated agreement (2011 Agreement) concerning the Villages at Fairfield Development; and,

WHEREAS, District staff and Rancho Tolenas representatives have agreed to amend certain provisions of the 2011 Agreement; and

WHEREAS, Amendment No. 1 to the 2011 Agreement, attached and made part of this resolution, incorporates these amended provisions;

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FAIRFIELD-SUISUN SEWER DISTRICT:

1. The President of the Board of Directors is hereby authorized and directed to signAmendment No. 1 to the Amended and Restated Agreement between Rancho TolenasCorp. and the Fairfield-Suisun Sewer District Concerning Construction of NortheastFairfield Pump Station to Serve the Villages at Fairfield Development.

2. The General Manager is hereby authorized and directed to do all things necessary andproper to implement this resolution.

PASSED AND ADOPTED THIS 22nd day of May 2017, by the following vote:

AYES: Directors

NOES: Directors

ABSENT: Directors

President ATTEST:

District Clerk

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May 17, 2017

MEMORANDUM


FROM: Greg Baatrup, General Manager

SUBJECT: Board Calendar

Recommendation Review and comment as necessary on the calendar items.

Background Attached is a listing of the contemplated agenda items for the next 12 months and a recap of the non-routine agenda items. These are provided as a recap of action from the last 12 months, and as a look ahead for the next 12 months. The contemplated agenda items may vary from the table as issues and priorities change overtime.

Attachment: #1- Board Calendar

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Fairfield-Suisun Sewer District Contemplated and Recent Board of Directors Agenda Items

May 17, 2017

Month Year Contemplated Board of Directors Meeting Agenda Items Executive

Committee Board of Directors

May 2017

1. Adopt Resolution No.2017-04, Accepting Bid and Award thecontract for the 2017 Coatings Project to Abhe & Svoboda in the amount of $627,176.

5/15/2017 5/22/2017

2. Adopt Resolution No. 2017-05, Extending the Deadline Specified inthe 1974 Recycled Agreement for the City of Fairfield to Install a Recycled Water Pipeline.

3. Adopt Resolution No.2017-06, Approving Amendment No.1 to theDevelopment Agreement with Rancho Tolenas Corporation for the Development of the Village Development

4. Report on April 2017 Earth Day ActivitiesJune 2017

1. General Manager Performance Evaluation6/19/2017 6/26/2017

July 2017

1. Quarterly General Manager Report7/17/2017 7/24/2016

2. Quarterly Investment ReportAugust 2017

Not Scheduled

Not Scheduled

September 2017 9/18/2017 9/25/2017

October 2017

1. Quarterly General Manager Report10/16/2017 10/23/2017 2. Quarterly Investment Report

3. Independent Auditors Report for FY 2016/17November

2017 1. Board 2018 Meeting Schedule

11/20/2017 11/27/2017

December 2017

Not Scheduled

Not Scheduled

January 2018

1. Quarterly General Manager Report

1/15/2018 1/22/2018 2. Quarterly Investment Report3. Report on CASA Winter Meeting

February 2018

Not Scheduled

Not Scheduled

March 2018

1. Ordinance amending Storm Drain Maintenance Charges3/19/2018 3/26/2018 2. Investment Policy Update

3. Board of Directors Report on CASA DC ConferenceApril 1. Quarterly General Manager Report

4/16/2018 4/23/2018 2018 2. Quarterly Investment Report

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Recent Non-routine Agenda Items

April2017

Meeting was Cancelled

January2017

October2016

1. Quarterly General Manager Report2. Quarterly Investment Report3. Resolution - Adopt CEQA findings for Blower Project

MonthYear

February2017

1. Quarterly General Manager Report2. Quarterly Investment Report3. Adopt Resolution to contract with PFM to manage district investments4. Authorization to contract with PG&E Cogen Upgrades5. Authorization to Bid Blower Project6. Approve Proposition 218 Notice7. Election of Officers/Executive Committee

4. Independent Auditors Report for FY 2015/16

3. Approved the distribution of a press release on the District's recognition as a Utility of the

1. Resolution re-adopting the investment policy2. Resolution authorizing the District pre-pay interagency loan with City of Fairifeld for the Train

4. Rate Study Progress Report

Not Scheduled

3. Resolution authorizing a contract with Solano County County for legal services and appointing4. Resolution authorizing paying and reporting EPMC5. Resolution adopting pay rate schedule

June2016

May2016

1. MOU with SFPUC for Processing Biosolids at OMRC2. Report on 2016 Compensation Study3. Board of Directors directs Executive Committee to prepare General Manager Performance

March2017

1. Ordinance amending Storm Drain Maintenance Charges2. Investment Policy Update3. Board of Directors Report on CASA DC Conference4. Approve Budgets for FY 2017/18 and FY 2018/195. Approve Sewer Service Charges and Capacity Fees

Not Scheduled

November2016

1. Resolution establishing regular meeting schedule for 2012. Sewer Service Charghe Update3. Presentation on Energy Usage and Opportunities4. Pretreatment Program Modifications

September2016

1. Authorize Consulting Services Agreement for the development of outreach video series2. Tabled decision to produce a District newsletter

4. Received report on Rate Study

July2016

August2016

1. Quarterly General Manager Report2. Quarterly Investment Report3. 2016 Treatment Plant Rehabilitation Project

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