CITY OF LAKEPORT

City Council Lakeport Redevelopment Agency City of Lakeport Municipal Sewer District

STAFF REPORT
RE: Award of Parallel Drive Water Main Project SUBMITTED BY: Scott Harter, City Engineer PURPOSE OF REPORT: Information only Discussion Action Item MEETING DATE: 11/01/2011

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD: The City Council is being asked to award the Parallel Drive Water Main project to Preston Pipelines, Inc. BACKGROUND: The City advertised the subject project on October 11, 2011, with a scheduled bid opening of Tuesday October 25, 2011. Twelve bids were received for the project ranging from approximately $760,000 to $1.3 million. Attached for review is the bid tabulation. This project is jointly funded by the Mendocino College and the City at a 50 percent ratio for the base bid per entity. The proposed additive alternate is 100 percent funded by the City. The project bid came in higher than budgeted, but both Mendocino College and the City have reserve funding available for project completion. DISCUSSION: Mendocino College has commenced construction on the new Lake Center located on Parallel Drive. A component of the construction of that campus involves extending City water services to the site. The College has partnered with the City to facilitate the extension of these services to the college parcel and agreed to front the cost of the project and allow the City to repay its 50 percent share over a five-year period without interest. The project was advertised, and bids were received, consistent with Public Contract Code requirements. Bid documents were reviewed for the apparent low bidder and found to be in order. A Notice of Intent to Award to Preston Pipelines was issued to all bidders on 10/27/11. Staff recommends awarding the Base Bid and Alternate Two to Preston Pipelines in the amount of $777,265.00. Staff expects construction inspection to add approximately 10 percent to the cost and is budgeting an additional 10 percent for contingencies. This brings the City's share of the joint project up to $458,017 plus an additional $13,902 for Alternate Two. OPTIONS: Award bid or provide direction to staff. FISCAL IMPACT: None $471,909 Account Number: Funds 501 & 502

Meeting Date: 11/01/2011

Page 1

Agenda Item #IX.A.1.

SUGGESTED MOTIONS: Move to award the base bid and alternate two to Preston Pipelines, Inc., of Milpitas and authorize the Mayor to sign the Notice of Award and the City Manager to sign the contract.

Attachments:

Bid Tabulation Notice of Award Contract

Meeting Date: 11/01/2011

Page 2

Agenda Item #IX.A.1.

Bid Opening 10/25/11

Bid Tabulation
Parallel Drive Water Main Expansion Project in Lakeport, CA

Bid No. 11-01

ITEM NO. DESCRIPTION BASE BID 1 Mobilization 2 Construction Area Signs 3 Traffic Control 4 6 C-900 PVC Pipe 5 8 C-900 PVC Pipe 6 10 C-900 PVC Pipe 7 14 C-900 PVC Pipe 8 6 Gate Valve 9 8 Gate Valve 10 10 Gate Valve 11 14 Gate Valve 12 Asphalt Concrete 13 Air Relief Valve 14 Fire Hydrant ALTERNATE ONE A1-1 Mobilization A1-2 Traffic Control A1-3 Air Relief Valve A1-4 14 C-900 PVC Pipe A1-5 14 Gate Valve A1-6 Asphalt Concrete ALTERNATE TWO A2-1 Mobilization A2-2 Traffic Control A2-3 Single Water Service A2-4 Double Water Service A2-5 Asphalt Concrete

UNIT Ls Ls Ls LF LF LF LF EA EA EA EA Sq.Ft. EA EA

QUANTITY 1 1 1 342 121 41 5735 11 2 1 17 22,604 7 8

Preston Pipelines Milpitas, CA UNIT ITEM PRICE TOTAL 78,250.00 3,150.00 25,150.00 42.00 52.00 76.00 70.00 1,175.00 1,500.00 2,200.00 5,050.00 4.00 2,400.00 2,550.00 78,250.00 3,150.00 25,150.00 14,364.00 6,292.00 3,116.00 401,450.00 12,925.00 3,000.00 2,200.00 85,850.00 90,416.00 16,800.00 20,400.00 763,363.00 550.00 2,000.00 2,600.00 50,594.00 5,650.00 14,808.00 76,202.00 600.00 1,500.00 2,650.00 6,400.00 2,752.00 13,902.00

Herback Gen. Eng. Minden, NV UNIT ITEM PRICE TOTAL 23,400.00 4,120.00 34,750.00 11.00 107.50 71.00 85.00 967.00 1,263.00 1,956.00 4,330.00 3.50 1,700.00 2,640.00 23,400.00 4,120.00 34,750.00 3,762.00 13,007.50 2,911.00 487,475.00 10,637.00 2,526.00 1,956.00 73,610.00 79,114.00 11,900.00 21,120.00 770,288.50 1,000.00 6,500.00 1,700.00 52,445.00 4,330.00 6,170.00 72,145.00 1,000.00 3,500.00 2,000.00 7,000.00 860.00 14,360.00

Ranger Pipelines, Inc San Francisco, CA UNIT ITEM PRICE TOTAL 10,000.00 2,000.00 5,000.00 80.00 82.00 90.00 95.00 1,000.00 1,200.00 2,500.00 3,500.00 3.00 1,500.00 2,500.00 10,000.00 2,000.00 5,000.00 27,360.00 9,922.00 3,690.00 544,825.00 11,000.00 2,400.00 2,500.00 59,500.00 67,812.00 10,500.00 20,000.00 776,509.00 1,000.00 500.00 2,000.00 77,125.00 4,000.00 7,404.00 92,029.00 500.00 100.00 2,000.00 5,000.00 1,032.00 8,632.00

Argonaut Constructors Santa Rosa, CA UNIT ITEM PRICE TOTAL 35,000.00 6,200.00 15,000.00 100.00 101.00 165.00 89.00 1,100.00 1,500.00 2,050.00 5,000.00 3.75 3,500.00 3,600.00 35,000.00 6,200.00 15,000.00 34,200.00 12,221.00 6,765.00 510,415.00 12,100.00 3,000.00 2,050.00 85,000.00 84,765.00 24,500.00 28,800.00 860,016.00 5,000.00 5,000.00 4,000.00 95,635.00 5,500.00 9,872.00 125,007.00 1,000.00 2,500.00 3,500.00 9,000.00 1,376.00 17,376.00

TOTAL BASE BID

LS 1 LS 1 EA 1 LF 617 EA 1 Sq.Ft. 2468 TOTAL ALTERNATE ONE LS 1 LS 1 EA 1 EA 2 Sq.Ft. 344 TOTAL ALTERNATE TWO 550.00 2,000.00 2,600.00 82.00 5,650.00 6.00

1,000.00 6,500.00 1,700.00 85.00 4,330.00 2.50

1,000.00 500.00 2,000.00 125.00 4,000.00 3.00

5,000.00 5,000.00 4,000.00 155.00 5,500.00 4.00

600.00 1,500.00 2,650.00 3,200.00 8.00

1,000.00 3,500.00 2,000.00 3,500.00 2.50

500.00 100.00 2,000.00 2,500.00 3.00

1,000.00 2,500.00 3,500.00 4,500.00 4.00

Page 1 of 3

Bid Opening 10/25/11

Bid Tabulation
Parallel Drive Water Main Expansion Project in Lakeport, CA

Bid No. 11-01

ITEM NO. DESCRIPTION BASE BID 1 Mobilization 2 Construction Area Signs 3 Traffic Control 4 6 C-900 PVC Pipe 5 8 C-900 PVC Pipe 6 10 C-900 PVC Pipe 7 14 C-900 PVC Pipe 8 6 Gate Valve 9 8 Gate Valve 10 10 Gate Valve 11 14 Gate Valve 12 Asphalt Concrete 13 Air Relief Valve 14 Fire Hydrant ALTERNATE ONE A1-1 Mobilization A1-2 Traffic Control A1-3 Air Relief Valve A1-4 14 C-900 PVC Pipe A1-5 14 Gate Valve A1-6 Asphalt Concrete ALTERNATE TWO A2-1 Mobilization A2-2 Traffic Control A2-3 Single Water Service A2-4 Double Water Service A2-5 Asphalt Concrete

UNIT Ls Ls Ls LF LF LF LF EA EA EA EA Sq.Ft. EA EA

QUANTITY 1 1 1 342 121 41 5735 11 2 1 17 22,604 7 8

Lamon Construction Yuba City, CA UNIT ITEM PRICE TOTAL 53,000.00 950.00 29,100.00 76.00 79.00 105.00 88.00 905.00 1,275.00 2,190.00 4,950.00 4.50 1,800.00 2,850.00 53,000.00 950.00 29,100.00 25,992.00 9,559.00 4,305.00 504,680.00 9,955.00 2,550.00 2,190.00 84,150.00 101,718.00 12,600.00 22,800.00 863,549.00 8,200.00 4,500.00 1,800.00 61,700.00 4,950.00 11,106.00 92,256.00 4,000.00 3,000.00 1,800.00 3,000.00 1,548.00 13,348.00

TerraCon Pipelines Healdsburg, CA UNIT ITEM PRICE TOTAL 36,253.00 1,307.00 1,933.00 94.00 96.00 170.00 101.00 960.00 1,336.00 1,943.00 4,887.00 4.00 3,673.00 2,217.00 36,253.00 1,307.00 1,933.00 32,148.00 11,616.00 6,970.00 579,235.00 10,560.00 2,672.00 1,943.00 83,079.00 90,416.00 25,711.00 17,736.00 901,579.00 5,671.00 188.00 3,967.00 70,955.00 5,811.00 7,404.00 93,996.00 3,819.00 188.00 2,714.00 5,742.00 1,032.00 13,495.00

W.R. Forde Richmond, CA UNIT ITEM PRICE TOTAL 30,000.00 2,500.00 8,000.00 85.00 95.00 115.00 103.00 1,200.00 1,500.00 2,500.00 6,000.00 4.00 3,000.00 5,000.00 30,000.00 2,500.00 8,000.00 29,070.00 11,495.00 4,715.00 590,705.00 13,200.00 3,000.00 2,500.00 102,000.00 90,416.00 21,000.00 40,000.00 948,601.00 2,500.00 6,000.00 3,500.00 98,720.00 8,000.00 19,744.00 138,464.00 2,000.00 2,000.00 4,500.00 12,000.00 3,440.00 23,940.00

Ghilotti Construction Santa Rosa, CA UNIT ITEM PRICE TOTAL 53,000.00 900.00 4,500.00 118.00 106.00 160.00 110.00 1,115.00 1,415.00 2,080.00 4,785.00 3.40 3,950.00 3,510.00 53,000.00 900.00 4,500.00 40,356.00 12,826.00 6,560.00 630,850.00 12,265.00 2,830.00 2,080.00 81,345.00 76,853.60 27,650.00 28,080.00 980,095.60 5,000.00 1,000.00 4,350.00 86,380.00 5,000.00 9,255.00 110,985.00 1,000.00 1,000.00 2,500.00 9,000.00 1,720.00 15,220.00

TOTAL BASE BID

LS 1 LS 1 EA 1 LF 617 EA 1 Sq.Ft. 2468 TOTAL ALTERNATE ONE LS 1 LS 1 EA 1 EA 2 Sq.Ft. 344 TOTAL ALTERNATE TWO 8,200.00 4,500.00 1,800.00 100.00 4,950.00 4.50

5,671.00 188.00 3,967.00 115.00 5,811.00 3.00

2,500.00 6,000.00 3,500.00 160.00 8,000.00 8.00

5,000.00 1,000.00 4,350.00 140.00 5,000.00 3.75

4,000.00 3,000.00 1,800.00 1,500.00 4.50

3,819.00 188.00 2,714.00 2,871.00 3.00

2,000.00 2,000.00 4,500.00 6,000.00 10.00

1,000.00 1,000.00 2,500.00 4,500.00 5.00

Page 2 of 3

Bid Opening 10/25/11

Bid Tabulation
Parallel Drive Water Main Expansion Project in Lakeport, CA

Bid No. 11-01

ITEM NO. DESCRIPTION BASE BID 1 Mobilization 2 Construction Area Signs 3 Traffic Control 4 6 C-900 PVC Pipe 5 8 C-900 PVC Pipe 6 10 C-900 PVC Pipe 7 14 C-900 PVC Pipe 8 6 Gate Valve 9 8 Gate Valve 10 10 Gate Valve 11 14 Gate Valve 12 Asphalt Concrete 13 Air Relief Valve 14 Fire Hydrant ALTERNATE ONE A1-1 Mobilization A1-2 Traffic Control A1-3 Air Relief Valve A1-4 14 C-900 PVC Pipe A1-5 14 Gate Valve A1-6 Asphalt Concrete ALTERNATE TWO A2-1 Mobilization A2-2 Traffic Control A2-3 Single Water Service A2-4 Double Water Service A2-5 Asphalt Concrete

UNIT Ls Ls Ls LF LF LF LF EA EA EA EA Sq.Ft. EA EA

QUANTITY 1 1 1 342 121 41 5735 11 2 1 17 22,604 7 8

Team Ghilotti, Inc. Petaluma, CA UNIT ITEM PRICE TOTAL 47,000.00 8,500.00 28,000.00 124.00 128.00 185.00 106.00 1,200.00 1,650.00 3,100.00 5,000.00 3.00 5,300.00 3,400.00 47,000.00 8,500.00 28,000.00 42,408.00 15,488.00 7,585.00 607,910.00 13,200.00 3,300.00 3,100.00 85,000.00 67,812.00 37,100.00 27,200.00 993,603.00 8,300.00 3,000.00 6,300.00 92,550.00 5,500.00 9,872.00 125,522.00 8,300.00 4,000.00 5,000.00 11,000.00 10,320.00 38,620.00

Cox & Cox Construction Redding, CA ITEM UNIT TOTAL PRICE 29,000.00 500.00 59,000.00 89.00 84.00 132.00 112.50 1,250.00 1,550.00 2,000.00 5,500.00 4.00 4,500.00 4,500.00 29,000.00 500.00 59,000.00 30,438.00 10,164.00 5,412.00 645,187.50 13,750.00 3,100.00 2,000.00 93,500.00 90,416.00 31,500.00 36,000.00 1,049,967.50 500.00 1,000.00 4,500.00 92,550.00 5,500.00 9,872.00 113,922.00 500.00 750.00 2,500.00 7,000.00 1,376.00 12,126.00

Helmer & Sons, Inc. Granite Construction Angwin, CA Watsonville, CA UNIT PRICE ITEM TOTAL UNIT PRICE ITEM TOTAL 20,000.00 3,000.00 40,000.00 150.00 157.00 180.00 138.00 900.00 1,000.00 1,800.00 5,000.00 3.00 3,500.00 2,700.00 20,000.00 3,000.00 40,000.00 51,300.00 18,997.00 7,380.00 791,430.00 9,900.00 2,000.00 1,800.00 85,000.00 67,812.00 24,500.00 21,600.00 1,144,719.00 1,500.00 3,000.00 2,800.00 92,550.00 5,000.00 7,404.00 112,254.00 1,000.00 2,000.00 1,500.00 5,000.00 1,032.00 10,532.00 118,265.00 1,600.00 70,520.00 98.00 114.00 183.00 148.00 725.00 1,100.00 1,750.00 4,500.00 3.50 4,800.00 3,800.00 118,265.00 1,600.00 70,520.00 33,516.00 13,794.00 7,503.00 848,780.00 7,975.00 2,200.00 1,750.00 76,500.00 79,114.00 33,600.00 30,400.00 1,325,517.00 15,250.00 14,500.00 5,300.00 113,528.00 5,200.00 12,340.00 166,118.00 1,100.00 4,100.00 4,400.00 9,300.00 5,504.00 24,404.00

TOTAL BASE BID

LS 1 LS 1 EA 1 LF 617 EA 1 Sq.Ft. 2468 TOTAL ALTERNATE ONE LS 1 LS 1 EA 1 EA 2 Sq.Ft. 344 TOTAL ALTERNATE TWO 8,300.00 3,000.00 6,300.00 150.00 5,500.00 4.00

500.00 1,000.00 4,500.00 150.00 5,500.00 4.00

1,500.00 3,000.00 2,800.00 150.00 5,000.00 3.00

15,250.00 14,500.00 5,300.00 184.00 5,200.00 5.00

8,300.00 4,000.00 5,000.00 5,500.00 30.00

500.00 750.00 2,500.00 3,500.00 4.00

1,000.00 2,000.00 1,500.00 2,500.00 3.00

1,100.00 4,100.00 4,400.00 4,650.00 16.00

Page 3 of 3

NOTICE OF AWARD

Preston Pipelines, Inc. 133 Bothelo Avenue Milpitas, CA 95035

PROJECT DESCRIPTION:

Bid No. 11-01; Parallel Drive Water Main Expansion Project

The City of Lakeport, hereinafter called "City", has considered the Bidder's Proposal submitted by you for the above-described WORK in response to its Notice to Contractors. YOU ARE HEREBY NOTIFIED that your BID has been accepted in the amount of $777,265.00 representing award of the Base Bid and Alternate Two. You are required by the Special Provisions to execute the CONTRACT within FIFTEEN (15) DAYS from receipt of this Notice. If you fail to execute said CONTRACT within fifteen (15) days from receipt of this Notice, CITY will be entitled to consider all your rights arising out of the CITY'S acceptance of your BID as abandoned. The CITY will be entitled to such other rights as may be granted by law. You are required to return an acknowledged copy of the NOTICE OF AWARD to the CITY DATED this 1st day of November, 2011. CITY OF LAKEPORT

______________________________ Hon. Mayor Lyons

ACCEPTANCE OF NOTICE Receipt of the above NOTICE OF AWARD is hereby acknowledged by

By: ________________________________

Title: ______________________________

CITY OF LAKEPORT
DEPARTMENT OF PUBLIC WORKS
AGREEMENT

THIS AGREEMENT, made this _____ day of __________________, 2011, by and between the City of Lakeport, hereinafter called "OWNER" and Preston Pipelines, Inc. doing business as a corporation hereinafter called "CONTRACTOR". WITNESSETH: That for and in consideration of the payments and agreements hereinafter mentioned: (1) The CONTRACTOR will commence and complete the Parallel Drive Water Main Expansion Project in Lakeport, Bid No. 11-01; (2) The CONTRACTOR will furnish all of the material, supplies, tools, equipment, labor and other services necessary for the construction and completion of the PROJECT described herein. (3) The CONTRACTOR will commence the work required by the CONTRACT DOCUMENTS within 15 calendar days after the date of the NOTICE TO PROCEED and will complete the same within Forty Five (45) Working days unless the period for completion is extended otherwise by the CONTRACT DOCUMENTS. (4) The CONTRACTOR agrees to perform all of the WORK described in the CONTRACT DOCUMENTS and comply with the terms therein for the sum of $777,265.00 (SEVEN HUNDRED SEVENTY SEVEN THOUSAND TWO HUNDRED SIXTY FIVE and NO/100), as shown in the BID schedule. (5) The term "CONTRACT DOCUMENTS" means and includes the following: (A) ADVERTISEMENT FOR BIDS (B) NOTICE TO CONTRACTORS (C) BIDDERS' CHECKLIST (D) PROPOSAL (BID) (E) SUBCONTRACTOR DETAILS (F) BID BOND (G) AGREEMENT (H) FEDERAL WAGE RATES (I) PAYMENT BOND (J) PERFORMANCE BOND (K) SPECIAL PROVISIONS issued by City of Lakeport, dated October 2011. (L) CHANGE ORDERS (M) PLANS prepared or issued by City of Lakeport dated September 2011. (N) ADDENDA: No. 1, dated October 20, 2011,

(6) The OWNER will pay to the CONTRACTOR in the manner and at such times as set forth in the General Conditions such amounts as required by the CONTRACT DOCUMENTS. (7) This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administrators, successors, and assigns. IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement on the date first above written.

APPROVED AS TO FORM Steven J. Brookes City Attorney

CITY OF LAKEPORT

By: ___________________________ Date: _________________________

By: ____________________________ , Mayor

CONTRACTOR

By:

Name: Title: Federal ID No. ___________________

Mailing Address: _________________ _______________________________ _______________________________

CITY OF LAKEPORT DEPARTMENT OF PUBLIC WORKS

PAYMENT BOND
(Section 3247, Civil Code) WHEREAS, The City of Lakeport , acting by and through the Department of Public Works, hereafter referred to as Obligee, has awarded to Contractor Preston Pipelines, Inc., hereafter designated as the Principal, a contract for the work described as follows: Parallel Drive Water Main Expansion Project in Lakeport, Bid No. 11-01; AND WHEREAS, said Principal is required to furnish a bond in connection with said contract, to secure the payment of claims of laborers, mechanics, materialmen and other persons as provided by law. NOW, THEREFORE, we the undersigned Principal and Surety are bound unto the Obligee in the sum of ______________________________________________________________________ dollars ($ ___________________), for which payment, we bind ourselves, jointly and severally. THE CONDITION OF THIS OBLIGATION IS SUCH, That if said Principal or its subcontractors shall fail to pay any of the persons named in Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by such claimant, or any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board for the wages of employees of the Principal and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor, that the surety herein will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In case suit is brought upon this bond, the surety will pay a reasonable attorneys fee to fixed by the court. This bond shall inure to the benefit of any of the persons named in Civil Code Section 3181 as to give a right of action to such persons or their assigns in any suit brought upon this bond. Dated: ______________________________________, 20 ____ Correspondence or claims relating to this bond should be sent to the surety at the following address: Principal Surety By : Attorney-in-Fact NOTE: Signatures of those executing for the surety must be properly acknowledged. CERTIFICATE OF ACKNOWLEDGEMENT State of California City / County of ________________________________________ SS On this _______ day of ___________________ in the year 20 ___ before me _________________________________, personally appeared ________________________________________________, personally known to me (or proved to me Attorney-in-fact on the basis of satisfactory evidence) to be the person whose name is subscribed to this instrument as the attorney-in-fact of ________________________________________________________ and acknowledged to me that he/she subscribed the name of the said company thereto as surety, and his/her own name as attorney-infact. (SEAL)

(SEAL)

Notary Public

CITY OF LAKEPORT DEPARTMENT OF PUBLIC WORKS

PERFORMANCE BOND
(To Accompany Contract) Bond No. ____________________ WHEREAS, The City of Lakeport , acting by and through the Department of Public Works, hereafter referred to as Obligee, has awarded to Contractor Preston Pipelines, Inc., hereafter designated as the Principal, a contract for the work described as follows: Parallel Drive Water Main Expansion Project in Lakeport, Bid No. 11-01; AND WHEREAS, the Contractor is required to furnish a bond in connection with said contract, guaranteeing the faithful performance thereof: NOW, THEREFORE, we the undersigned Contractor and Surety are held firmly bound to the City / County of ______________________________________ in the sum of $ _________________________________________________ dollars ($ ___________________), to be paid to said City / County or its certain attorney, its successors and assigns: for which payment, well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors or assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, That if the above bound Contractor, its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the foregoing contract and any alteration thereof made as therein provided, on his or their part to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning, and shall indemnify and save harmless the City / County of ___________________________________ , its officers and agents, as therein stipulated, then this obligation shall become and be null and void; otherwise it shall be and remain in full force and virtue. IN WITNESS WHEREOF, We have hereunto set our hands and seals on this ___________ day of ________________, 20___. Correspondence or claims relating to this bond should be sent to the surety at the following address: Contractor Name of Surety By : Attorney-in-Fact (SEAL)

NOTE: Signatures of those executing for the surety must be properly acknowledged. CERTIFICATE OF ACKNOWLEDGEMENT State of California, City / County of ________________________________________ SS On this _______ day of ___________________ in the year 20 ___ before me _________________________________, a notary public in and for the City / County of _____________________________________________, personally appeared ________________________________________________, known to me to be the person whose name is subscribed to this Attorney-in-fact instrument and known to me to be the attorney-in-fact of _______________________________________________ and acknowledged to me that he/she subscribed the name of the said company thereto as surety, and his/her own name as attorney-in-fact. (SEAL) Notary Public

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

STAFF REPORT
RE: Ordinance to Provide Support for PEG Channel SUBMITTED BY: Margaret Silveira, City Manager PURPOSE OF REPORT: Information only Discussion Action Item MEETING DATE: 11/01/2011

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD: The City Council is being asked to introduce an ordinance to add an article to the City of Lakeport Municipal Code to provide support for Public, Educational and Governmental (PEG) cable television access facilities and set a public hearing for the second reading on December 6, 2011, at 6:00 p.m. BACKGROUND: On September 20, 2011, a presentation was made by Board Members of the Lake County Television 8 PEG Channel. They asked for Council support in a 1 percent pass-through to cable subscribers to support the PEG channel. There was Council consensus to bring back a resolution in support of this. The County researched the item and determined that it must be done by ordinance rather than resolution. Both the County of Lake and City of Clearlake are introducing similar ordinances in their jurisdictions. DISCUSSION: According to the mission statement for the Lake County PEG TV (LCPTV) Board, is to provide local Access to the Public, the Educational Community, and Local Government in Lake County. They want to be able to support, and promote television along with other multimedia productions with community driven content, through education and training, facilities and equipment, and production assistance. Lake County PEG TV is on the Lake County Mediacom network. Traditionally, the station has provided local, and import programming, submitted by local residents, and produced by volunteers with the support of the County of Lake and the City of Clearlake, without advertising. The City of Clearlake and County of Lake have both informed the LCPTV Board that they may no longer be able to financially support a Public Access Station. State of California, Public Utilities Code Section 5870 allows for a 1 percent pass-through for the purpose of funding PEG TV. The authority for this pass-through comes from the Digital Infrastructure and Video Competition Act (DIVCA) of 2006. In order to take advantage of this funding, local City and County officials must adopt an Ordiance enabling this pass through. Mediacom already holds state franchises in our area, and most of our surrounding communities, as well as others across the country, have already adopted such Ordinances. In fact, it has become the majority standard for funding PEG Stations nationwide. This 1 percent pass-through is estimated to bring in approximately $55,000 per year to support the PEG channel. OPTIONS: Introduce ordinance or provide further direction to staff.
Meeting Date: 11/01/2011 Page 1 Agenda Item #IX.B.1.

FISCAL IMPACT: None $ Account Number: Comments:

SUGGESTED MOTIONS: Move to introduce an ordinance to add an article to the City of Lakeport Municipal Code to provide support for Public, Educational and Governmental (PEG) cable television access facilities and set a public hearing for the second reading on December 6, 2011, at 6:00 p.m.

Attachments:

Proposed Ordinance PEG Mission Statement

Meeting Date: 11/01/2011

Page 2

Agenda Item #IX.B.1.

ORDINANCE NO. _________ (2011)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKEPORT ADDING ARTICLE IV TO CHAPTER 5.16 OF THE LAKEPORT MUNICIPAL CODE TO PROVIDE SUPPORT FOR PUBLIC, EDUCATIONAL AND GOVERNMENTAL CABLE TELEVISION ACCESS FACILITIES
WHEREAS, the Digital Infrastructure and Video Competition Act of 2006 (the "Act") went into effect January 1, 2007; and WHEREAS, under the Act, the State of California shall have sole franchising authority for new video service providers within the County; and WHEREAS, pursuant to the Act, certain rights and responsibilities must be established by local ordinance before they may become effective and enforceable against state video franchise holders, including the establishment of fees to support public, educational and governmental access (PEG) channels. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKEPORT DOES ORDAIN AS FOLLOWS: Section 1: The City Council of the City of Lakeport hereby adds Article IV to Chapter 5.16 of the Lakeport Municipal Code to read as follows: "ARTICLE IV PEG CHANNEL 5.16.400 Provision of Channel All state franchise holders who have been awarded a state video franchise under the California Public Utilities Code section 5800 et seq. (the Digital Infrastructure and Video Competition Act of 2006 [the Act]) to operate within the unincorporated boundaries of the County of Lake, shall provide capacity for one public, education and governmental (PEG) access channel in accordance with California Public Utilities Code section 5870. 5.16.410 Compliance with the Digital Infrastructure and Competition Act of 2006 Said state franchise holders shall comply with the provisions of the Act related to PEG access channels, including the following requirements of California Public Utilities Code section 5870: A. B. The PEG access channel shall all be carried on the basic service tier. To the extent feasible, the PEG access channel shall not be separated numerically from other channels carried on the basic service tier and the channel numbers for the PEG access channel shall be the same channel numbers used by the incumbent cable operator, unless prohibited by federal law. After the initial designation of PEG access channel number, the channel number shall not be changed without the agreement of the County, unless the change is required by federal law. The PEG access capacity provided shall be of similar quality and functionality to that offered by commercial channels on the lowest cost tier of service, unless the signal is provided to the state franchise holder at a lower quality or with less functionality.

C. D.

5.16.420 PEG Facilities Fee A. State franchise holder shall pay to the County, a PEG fee equal to one percent (1%) of gross revenues which shall be exclusively used to support the operation of PEG channel facilities. The County Administrative Officer shall prescribe financial accountability and reporting standards to which the Countys designated PEG facilities provider shall be subject in order to qualify for receipt of said PEG fees. State franchise holders shall remit PEG fees in the same manner as franchise fees as set forth in the Act. Each remittance shall be accompanied by a summary detailing how the PEG support fee was calculated. If a state franchise holder fails to pay the PEG support fee when due, or underpays the proper amount due, the state franchise holder shall pay interest at the rate per year equal to the highest prime lending rate during the period of delinquency, plus one percent (1%) of the maximum rate specified by state law.

B.

C.

D. The PEG Fee may be shown as a separate line item on the regular bill of each subscriber. E.

Section 2: All ordinances or parts of ordinances or resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict and not further. Section 3: This ordinance shall take effect only upon the adoption of similar ordinances by both the City of Clearlake and the County of Lake which reflect the same PEG Fee as established herein. The effective date shall be the date established by the city last adopting said ordinance. Section 4: This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Lake County Record Bee, a newspaper of general circulation published and circulated in the City of Lakeport and thenceforth and thereafter the same shall be in full force and effect. This ordinance was introduced before the City Council of the City of Lakeport at a regular meeting thereof on the 1st day of November, 2011, by the following vote: AYES: NOES: ABSTAINING: ABSENT This Ordinance was duly enacted by the City Council of the City of Lakeport at a regular meeting thereof on the 6th day of December, 2011, by the following vote: AYES: NOES: ABSTAINING: ABSENT: _________________________________ SUZANNE LYONS, Mayor ATTEST: ________________________________ JANEL M. CHAPMAN, City Clerk APPROVED AS TO FORM: _________________________________ STEVEN J. BROOKES, City Attorney

YOUR COMMUNITY ACCESS STATION LAKE COUNTY CALIFORNIA

Our Mission: To provide Local Access to the Public, and the Educational Community, and Local Government in Lake County Our Vision: Community Access Television provides a public access media channel that enables a vibrant, diverse, and evolving community to express its creativity, explain its ideas, share its cultures, and embrace the individuals right to Freedom of Speech. Lake County PEG TVs goal is to support, and promote television along with other multimedia productions with community-driven content, through education and training, facilities and equipment, and production assistance. The public then becomes a stronger, better informed, and more open community through alternative media. Lake County PEG TV encourages the community, old and young alike, to become involved in local education, government, and public broadcasting. Lake County PEG TV is a PEG (Public, Education, and Government) Access Channel aired on the Lake County Mediacom network. Traditionally, the station has provided local, and import programming, submitted by local residents, and produced by volunteers with the support of Lake County, and the City of Clearlake, without advertising or asking anything from the community LCPTV is now facing the same crisis as these local governments. The City of Clearlake and Lake County have both informed us that they regrettably might no longer be able to support a Public Access Station financially. State law is already in place which would help LCPTV to remain alive, and work toward the accomplishment of our goals to provide the best possible PEG Channel for our community. We refer to PUC 5870 Sec. n, which allows for a 1% pass through for the purpose of funding PEG TV. The authority for this pass through comes from the Digital Infrastructure and video Competition Act (DIVCA) of 2006. All that is required to take advantage of this funding is the adoption of an enabling Ordinance by City, and County officials. According to DIVCA, this Ordinance is long overdue as Mediacom already holds state franchises in our area. Most of our surrounding communities have already adopted such Ordinances, as well as most others across the country. In fact, it has become the majority standard for funding PEG Stations nationwide. We as a community need to utilize the media for what it was designed for: To inform, enlighten and engage the public, and enable and them to make intelligent decisions based on a variety of information from as many sources as possible. This is why you will see films and documentaries from all perspectives and as much local programming as we can get. LCPTV is YOUR Community Access Station, but it cannot exist without your help!