HomeMy WebLinkAbout2017-1071
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RESOLUTION NO. 2017-107
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVNG THE MASTER SERVIES AGREEMENT
("MSA") WITH THE SAN BERNARDINO MUNICPAL WATER DEPARTMENT AND
AUTHORIZING THE CITY MANAGER TO EXECUTIE THE AGREEMENT WITH
THE WATER DEPARMENT FOR THE PROVISION OF CITY SERVICES FOR
FISCAL YEAR 2016-17 IN THE AMOUNT OF $3,266,000.00
WHEREAS, The City of San Bernardino ("City") provides certain services to the Water
Department ("Department") for which the Department compensates the City; and
WHEREAS, it is the desire of the City and the Water Department to enter into an
agreement to memorialize these services;
NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the
City of San Bernardino as follows:
SECTION 1. The Master Services Agreement between the City and the Water
Department setting forth the services that are to be provided by the City to the Water
Department and the compensation to be paid therefore, a copy of which is attached hereto and
incorporated herein as Exhibit "A" for FY 2016-17, is hereby adopted.
SECTION 2. That the implementation date of the FY 2016-17 Master Services
Agreement is July 1, 2016 to June 30, 2017.
SECTION 3. The costs for the services to be provided by the City to the Water
Department in FY 2016-17 is $3,266,000.00
SECTION 4. The City Manager is hereby authorized and directed to execute on behalf
of said or his designee the Master Services Agreement.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVNG THE MASTER SERVIES AGREEMENT
("MSA") WITH THE SAN BERNARDINO MUNICPAL WATER DEPARTMENT AND
AUTHORIZING THE CITY MANAGER TO EXECUTIE THE AGREEMENT WITH
THE WATER DEPARMENT FOR THE PROVISION OF CITY SERVICES FOR
FISCAL YEAR 2016-17 IN THE AMOUNT OF $3,266,000.00
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on the 21"
ty of June 2017, by the following vote, to wit:
ouncil Members: AYES NAYS
tiI ARQUEZ X
ABSTAIN ABSENT
ALDIVIA X
HORETT ' X(S)
ICKEL X
ICHARD X
IULVIHILL X(M)
Georgeann nna, CMC, 4 Clerk
foregoing Resolution is hereby approved this 21 St day of June 2017.
JLrw
R. Carey Day' , Mayor
City of San Pernardino
Approved as to form:
3ary D. Saenz, City Attorney
By: u
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Resolution No. 913
RESOLUTION OF THE BOARD OF WATER COMMISSIONERS OF THE CITY OF
SAN BERNARDINO ADOPTING THE MASTER SERVICES MEMORANDUM OF
UNDERSTANDING WITH THE CITY OF SAN BERNARDINO FOR PROVISION OF CITY
SERVICES FOR FISCAL YEAR 2016-2017
WHEREAS, The City of San Bernardino (City) provides certain
services to the Water Department (Department) for which the
Department compensates the City; and,
WHEREAS, it is the desire of the City and the Department to
extend the Master Services Memorandum of Understanding to
memorialize these service for Fiscal Years 2016-17;
BE IT RESOLVED BY THE BOARD OF WATER COMMISSIONERS OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. A Master Services Memorandum of Understanding
with the City, attached hereto and incorporated herein is hereby
adopted.
I HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Board of Water Commissioners of the City of San Bernardino at
a regular meeting thereof, held on the 11th day of July, 2017, by
the following vote, to wit:
AYES: COMMISSIONERS CALLICOTT, VALLES, FERNANDEZ, MLYNARSKI
NAYES:
ABSENT: COMMISSIONER HENDRIX
(Seal)
Robin L. Ohama
Deputy City Clerk & Ex -Officio Secretary
Page 1 of 1
EXHIBIT "A"
MASTER SERVICES AGREEMENT
THIS MASTER SERVICES AGREEMENT is made and entered into by and
between the City of San Bernardino, a charter city (City), and the Water Board of the City
of San Bernardino (Board), who agree that the City shall provide services to the City of San
Bernardino Municipal Water Department (Department), for which the Board will compensate
City as follows:
1. SUPPORT SERVICES: The City provides the City of San Bernardino
Municipal Water Department (Department) the services of its City
departments in support of Department operations.
2. POLICE AND FIRE SAFETY SERVICES: The City provides public safety
services to safeguard property and lives located within the City. Private residents
and businesses as well as the public infrastructure and employees benefit from
these public safety services. The Water & Sewer Enterprise benefit from public
safety services in a variety ways. Police presence helps deter (1) tampering with
well sites, valves, instrumentation, and other controls; (2) vandalism and theft of
salvageable materials (a significant current concern in light of economic distress
and high values paid for scrap metal); (3) theft of water; and (4) introduction of
contaminants into source water and other acts of terrorism. Police personnel are
available to investigate acts of tampering, vandalism, theft, and terrorism. Police
and fire personnel are also available to respond to emergencies such as main
breaks, hydrant damage, and natural disasters that could interrupt water system
operations. These public safety services are in addition to the security services that
are included in the Water & Sewer Enterprise and that should also be funded by
water rates.
Funding for public safety services is derived from a variety of sources, of which
tax revenue is the primary source. Not included in these funding sources is
reimbursement from the Water & Sewer Enterprises for its share of the cost of the
public safety services from which it directly benefits. The Water & Sewer
Enterprise's share of the cost of public safety services should be commensurate
with the benefits received. These benefits are proportionate to the value of Water
& Sewer Enterprise property as compared to the value of all public and private
property within the City which benefits from those public safety services.
The attached Appendix 1 demonstrates how the Water & Sewer Enterprise's
share of the public safety budget is derived based on the relative value of the
Water & Sewer Enterprise assets compared with the value of all assets in the
City. The Police budget was reduced to eliminate programs that provide no
benefit to the Water Enterprise.
EXHIBIT "A"
MASTER SERVICES AGREEMENT
Based on the Water & Sewer Enterprise's share of property in the City, the Water
Enterprise is allocated $2,543,377 and the Sewer Treatment Enterprise has an allocation
of $129,750.00.
3. RIGHT OF WAY & STREET MAINTENANCE FEES: Right-of-way usage and
street maintenance encompasses a variety of activities ranging from use of dedicated
right-of-way for underground utilities, pavement management, mapping, fencing, and
real estate administration. Because the City has already purchased the right-of-way
used by the utilities, the majority of the budget associated with these two items is
devoted to pavement maintenance. Any service with buried infrastructure located
within the City's rights of way benefits from well -constructed and maintained
pavement, which protects against vehicle and environmental impacts such as erosion
and subsidence. When buried infrastructure is constructed, the costs of excavation
and pavement repair are included in the construction cost. Hence, when a water main
is installed, the cost of the installation is covered by water rates. Subsequent to the
construction, the City incurs ongoing pavement construction and maintenance
expenses that are at least related to the presence of buried infrastructure. For example,
trench excavations disturb the soil. If backfill and compaction is imperfect,
subsidence and differential settlement can occur, particularly where vehicle loads are
greatest. When excessive settlement occurs, pavements are weakened, allowing water
to intrude, which shortens the pavement service life.
The cost of this ongoing pavement construction and maintenance expense is borne by
the Department of Public Works, which typically does not seek direct reimbursement
from the specific buried infrastructure that is the source of premature pavement
deterioration. The Water Enterprise's buried infrastructure is a portion of the City's
entire buried infrastructure. In tum, the City's buried infrastructure is a portion of the
total buried infrastructure, which also includes gas, electric, and telephone services.
The presence of this infrastructure can shorten the service life of pavement. Initial
installation of the infrastructure disturbs soil and subsequent maintenance (e.g., repairs)
will result in trench cuts that further shorten the life of the pavement. As a result,
buried infrastructure receives a benefit for which it should provide funding. The
analysis included in Appendix 1 shows the steps involved in determining the Water
Enterprise's share of pavement repair, which is the predominant component of right-
of-way maintenance. These repayments can be viewed both as a cost the Water
Enterprise imposes on the streets program and as rental of the land beneath city
streets for the benefit of the Water Enterprise. From this data, right-of-way and street
maintenance fees were established for FY 2016-17; the calculation of the total cost,
based on budgeted expenditures at the time of the study result in an allocation of
$1,520,115. Of this amount, only $592,873 is proposed to be allocated to the Water
Department through the MSA. This is due to lighter expenditures anticipated to be
incurred for pavement construction and maintenance than budgeted during the period.
EXHIBIT "A"
MASTER SERVICES AGREEMENT
4. RATE SETTING AUTHORITY: This Master Services Agreement shall authorize
the Water Board, on the behalf of the Mayor and City Council, the authority to study,
analyze and establish utility enterprise rates for Water, Sewer Collection, and Sewer
Treatment.
5. TERM: This Master Services Agreement shall be effective July 1, 2016 through June
30, 2017.
6. ANNUAL FRANCHISE FEE: The above sections of the MSA define the costs
associated with support services, public safety, right-of-way and direct billed
services. Total costs during this agreement are as follows:
Fiscal Year
Public Safety
FY 2016-17 $2,673,127.00
ROW & Street
Maintenance
$592,873.00
Totals
$3,266,000.00
EXHIBIT "A"
MASTER SERVICES AGREEMENT
By and between the City of San Bernardino and the Water Board of the City of San Bernardino for
the provision of City services for Fiscal Year 2016/2017.
Date: '-7— 1(" 1-7
Date:
Date: t'tij �> 7�/7
APPROVED AS TO FORM:
B Saenz, City Attorney
WATER BOARD OF THE
ITY OF SAN BE NARDINO
V
To allicott, .resid
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QSANBE
OAMINO #a 0 O4 4
At, -,z '4�1- a �It
Mark Scott, City Manager
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