Atwater City Council
May 8, 2023

In-person participation by the public will be permitted. In addition, remote public participation is available in the following ways:

1. Livestream online at www.atwater.org (Please be advised that there is a broadcasting delay. If you would like to participate in public comment, please use the option below).

2. Submit a written public comment prior to the meeting: Public comments submitted to [email protected] by 4:00 p.m. on the day of the meeting will be distributed to the City Council, and made part of the official minutes but will not be read out loud during the meeting.

Assistance will be provided to those requiring accommodations for disabilities in compliance with the Americans with Disabilities Act of 1990. Persons requesting accommodation should contact the City in advance of the meeting, and as soon as possible, at (209) 357-6241.

CITY OF ATWATER
City Council
AGENDA
Council Chambers
750 Bellevue Road
Atwater, California
May 8, 2023
CALL TO ORDER: 6:00 PM
REGULAR SESSION: (Council Chambers)

INVOCATION
Invocation by Police Chaplain Steve Mead

PLEDGE OF ALLEGIANCE TO THE FLAG

City Council Agenda for Meeting of May 8, 2023 Page 2
ROLL CALL:

Ambriz ____, Button ____, Cale ____, Raymond ____, Nelson _____ SUBSEQUENT NEED ITEMS: (The City Clerk shall announce any requests for items requiring immediate action subsequent to the posting of the agenda. Subsequent need items require a two-thirds vote of the members of the City Council present at the meeting.)
APPROVAL OF AGENDA AS POSTED OR AS AMENDED: (This is the time for the City Council to remove items from the agenda or to change the order of the agenda.) Staff's Recommendation: Motion to approve agenda as posted or as amended.

CEREMONIAL MATTERS:
• Certificate of Recognition - Youth from Atwater High School Recognized by Directing Change Program
Staff's Recommendation: That City Council Member Ambriz present certificates of recognition to the Atwater High School students for their artistic achievements in mental health and suicide prevention in the Directing Change Program.
• Certificate of Recognition - Buhach Colony High School CCC Student Athletes
Staff's Recommendation: That City Council Member Cale present certificates of recognition to the Buhach Colony High School CCC Student Athletes and Athletic Director for their achievements. • Oath of Office - Police Officer and Public Safety Dispatcher Staff's Recommendation: That City Clerk Billings administer the ceremonial oath of office to the newly appointed Police Officer Levi Crain and Public Safety Dispatcher.

Proclamations
• National Peace Officers Memorial Day, May 15, 2023 and National Police Week, May 15 - May 21, 2023
Staff's Recommendation: That Mayor Nelson present the proclamation to Police Chief Salvador, on behalf of the Police Department, recognizing the day of May 15, 2023 as National Peace Officers Memorial Day and the week of May 15 - May 21, 2023 as National Police Week.

City Council Agenda for Meeting of May 8, 2023 Page 3

CONSENT CALENDAR

NOTICE TO THE PUBLIC
Background information has been provided on all matters listed under the Consent Calendar, and these items are considered to be routine. All items under the Consent Calendar are normally approved by one motion. If discussion is requested on any item, that item will be removed from the Consent Calendar for separate action.

WARRANTS

1. May 8, 2023
Staff's Recommendation: Approval of warrants as listed.

MINUTES: (City Council)

2. April 24, 2023
Staff's Recommendation: Approval of minutes as listed.

MINUTES: (General Plan Technical Advisory Committee )

3. a) February 1, 2023 - Regular meeting
b) March 1, 2023 - Regular meeting
c) April 5, 2023 - Regular meeting
Staff's Recommendation: Acceptance of minutes as listed

RESOLUTIONS

4. Approving and authorizing Purchase and Sale Agreements for Fruitland Avenue Reconstruction - Phase 3 Right of Way Acquisition and approving expenditure of any additional and related closing expenses (Community Development Director Thompson)
Staff's Recommendation: Adoption of Resolution No. 3391-23 approving and authorizing the Purchase and Sale Agreements for various properties in the amount of $18,123.00, $148,078.00, and $53,610.00, respectively, for Fruitland Avenue Reconstruction - Phase 3 Right of Way Acquisition, CIP Project No. 16-2-3, in forms approved by the City Attorney and approves the expenditure of any additional and related closing expenses; and authorizes and directs the City Manager, or her designee, to execute all Agreements and utility related documents to CIP Project No. 16-2-3 on behalf of the City.

AGREEMENTS:

5. Authorizing and approving a Purchase Agreement (Purchase Order) with Sun Ridge Systems for the purchase of software modules for the Police Department's Records Management System (Police Chief Salvador)
Staff's Recommendation: Authorizes and approves a Purchase

City Council Agenda for Meeting of May 8, 2023 Page 4
Agreement (Purchase Order) with Sun Ridge Systems of El Dorado Hills, California for the purchase of District Attorney and Citizen reporting supplemental modules for the Police Department's Records Management System in an amount not to exceed $14,270; and authorizes and directs the City Manager, or her designee, to execute the Purchase Agreement (Purchase Order) on behalf of the City.

6. Approving Restated Joint Powers Agreement of Merced County Association of Governments (City Attorney Splendorio)
Staff's Recommendation: Adoption of Resolution No. 3396-23 approving a Restated Joint Powers Agreement of the Merced County Association of Governments (MCAG) and authorizing the City Manager to execute on behalf of the City.

ORDINANCES (WAIVING SECOND READING AND ADOPTION):

7. Adoption of an Ordinance amending Section 3.45.140 of the Atwater Municipal Code related to the Citizens' Oversight Committee (City Manager Waterman)
Staff's Recommendation: Adoption of Ordinance No. CS 1061 amending Section 3.45.140 of the Atwater Municipal Code related to the Citizens' Oversight Committee.
***END OF CONSENT CALENDAR***
REPORTS AND PRESENTATIONS FROM STAFF:

8. Accepting City of Atwater’s audited Financial Statements and Single Audit for Fiscal Year ended June 30, 2022 (City Manager Waterman and Finance Director Youmara)
Staff's Recommendation: Motion to accept the City of Atwater’s audited Financial Statements and Single Audit for Fiscal Year ended June 30, 2022; or
Motion to approve staff’s recommendation as presented.

9. Awarding Professional Services Agreement to De Novo Planning Group for the preparation of the Comprehensive General Plan Update and Master Environmental Impact Report (Community Development Director Thompson)
Staff's Recommendation: Motion to award a Professional Services Agreement, in a form approved by the City Attorney, to De Novo Planning of El Dorado Hills, California, in an amount not to exceed $1,601,088.00; and authorize the City Manager, or her designee, to execute the agreement on behalf of the City; or
Motion to approve staff's recommendation as presented.

City Council Agenda for Meeting of May 8, 2023 Page 5
CITY MANAGER REPORTS/UPDATES:

10. Amending City of Atwater Classification Plan relating to Deputy City Manager/Community Development Director, adopting Salary Schedule E-23 and approving Deputy City Manager/Community Development Director and Police Chief Employment Agreements (City Manager Waterman)
Staff's Recommendation: Motion to adopt Resolution No. 3392-23 amending the City of Atwater Plan relating to Deputy City Manager/Community Development Director and adopting Salary Schedule E-23; and
Motion to approve Deputy City Manager/Community Development Director Agreement with Greg Thompson in the annual amount of $182,097.59 plus benefits; and
Motion to approve Police Chief Agreement with Michael J. Salvador in the annual amount of $185,000.00 plus benefits; and authorize and direct the City Manager to execute the agreements on behalf of the City; or
Motion to approve staff's recommendation as presented.

11. City Manager Waterman Updates

COMMENTS FROM THE PUBLIC

NOTICE TO THE PUBLIC
At this time any person may comment on any item which is not on the agenda. You may state your name and address for the record; however, it is not required. Action will not be taken on an item that is not on the agenda. If it requires action, it will be referred to staff and/or placed on a future agenda. Please limit comments to a maximum of three (3) minutes.

CITY COUNCIL REPORTS/UPDATES
• City Council Member Cale, District 1
• City Council Member Button, District 2
• City Council Member Ambriz, District 3
• Mayor Pro Tem Raymond, District 4
• Mayor Nelson

ADJOURNMENT
CERTIFICATION:

City Council Agenda for Meeting of May 8, 2023 Page 6
I, Kory J. Billings, City Clerk of the City of Atwater, do hereby certify that a copy of the foregoing agenda was posted at City Hall a minimum of 72 hours prior to the meeting. _______________________________
KORY J. BILLINGS

CITY CLERK
SB 343 NOTICE
In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the office of the City Clerk at City Hall during normal business hours at 750 Bellevue Road.

If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda at 750 Bellevue Road.

In compliance with the federal Americans with Disabilities Act of 1990, upon request, the agenda can be provided in an alternative format to accommodate special needs. If you require special accommodations to participate in a City Council, Commission or Committee meeting due to a disability, please contact the City Clerk’s Office a minimum of three (3) business days in advance of the meeting at (209) 357-6241. You may also send the request by email to [email protected] .

Unless otherwise noted, City Council actions include a determination that they are not a “Project” within the meaning of the California Environmental Quality Act (CEQA), and therefore, that CEQA does not apply to such actions.

1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31
Sunday Monday Tuesday Wednesday Thursday Friday Saturday GPTAC - 6:00 PM
6:00 PM
City Council Meeting -
Planning Commission
Mother's Day Meeting - 6:00 PM
Committee Meeting - District 3
6:00 PM
Audit & Finance Merced County
Supervisor McDaniel
City Holiday Town Hall 4:00 PM
Trash pick up delayed
1 day
Observed
~ May 2023 ~
City Council Meeting - Office Hours -
4:30 PM
1:30 PM - 3:30 PM
Memorial Day Atwater Comm Center

1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30
~ June 2023 ~
6:00 PM
City Council Meeting -
4:30 PM
Committee Meeting -
1:30 PM - 3:30 PM
Audit & Finance
Office Hours -
Merced County
Supervisor McDaniel
Father's Day First Day of Summer District 3
6:00 PM Meeting - 6:00 PM
City Council Meeting - Planning Commission
5:30 PM
GPTAC - 6:00 PM
Committee Meeting -
Citizens' Oversight
Sunday Monday Tuesday Wednesday Thursday Friday Saturday

WARRANTS SUMMARY FOR MAY 8 2023

TOTAL OF WARRANTS (FROM WARRANT REPORT)

PREWRITTENS INCLUDED IN THIS WARRANT RUN

ADDITIONAL WARRANTS ( THESE AMOUNTS ARE NOT INCLUDED IN TOTAL WARRANTS)

DATE DESCRIPTION AMOUNT
$ 1,116,747.22
$ 17,747.79
4/24/2023 PNC Bank
4/24/2023 APOA Union Dues
4/24/2023 AFSCME District Council 57
$ 4,033.00
$ 2,352.24
$ 952.98
4/24/2023 State Disbursement - Child Support $ 473.98
4/24/2023 PERS Retirement EFT 3/30/23 - 4/12/23 $ 52,087.57 4/24/2023 AFLAC - APRIL 2023 $ 542.37
4/28/2023 Retiree Medical Reimbursement - May 2023 $ 33,218.61 4/26/2023 Employment Development Dept - SUI ending 3/31/23 $ 11,058.00 4/24/2023 First American Title Company $ 22,892.00
TOTAL ADDITIONAL WARRANTS $ 127,610.75 $ 127,610.75
GRAND TOTAL OF WARRANTS PAID $ 1,262,105.76

INFORMATIONAL ONLY (INCLUDED IN THE TOTAL WARRANTS TOTAL) 4/24/2023 Net Payroll $ 183,314.92 $ 251,441.20
4/24/2023 Federal Taxes $ 61,144.94
4/24/2023 State Taxes $ 6,981.34
4/24/2023 Payroll Deductions $ 968.44
7 TOTAL INFORMATIONAL WARRANTS $ 252,409.64

CITY TREASURER

Accounts Payable
Checks for Approval
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Check Number Check Date Fund Name Account Name Vendor Name Void Amount 22350 04/21/2023 General Fund Training CALIFORNIA CLETS USER GROUP 100.00 Check Total: 100.00
22351 04/24/2023 General Fund Garnishments FRANCHISE TAX BOARD 210.00 Check Total: 210.00
22352 04/24/2023 Employee Benefits Fund Health Reimbursements UNUM LIFE INSURANCE 33.59 22352 04/24/2023 Employee Benefits Fund Health Reimbursements UNUM LIFE INSURANCE 33.59 Check Total: 67.18
22353 04/24/2023 Employee Benefits Fund Health Reimbursements UNUM LIFE INSURANCE 345.63 22353 04/24/2023 Employee Benefits Fund Health Reimbursements UNUM LIFE INSURANCE 345.63 Check Total: 691.26
22354 04/27/2023 Employee Benefits Fund Health Insurance, Retirees DAVID CHURCH 1,937.20 Check Total: 1,937.20
22355 04/27/2023 Employee Benefits Fund Health Insurance, Retirees GARY FRAGO 263.42 Check Total: 263.42
22356 04/27/2023 Employee Benefits Fund Health Insurance, Retirees LORIN MANN 604.69 Check Total: 604.69
22357 04/27/2023 Employee Benefits Fund Health Insurance, Retirees WILLIAM MARTIN 691.69 Check Total: 691.69
22358 04/27/2023 Employee Benefits Fund Health Insurance, Retirees BILL SWALLEY 29.71 Check Total: 29.71
22359 04/28/2023 Price Annexation LMA Utilities MERCED IRRIGATION DISTRICT 116.57 22359 04/28/2023 General Fund Utilities MERCED IRRIGATION DISTRICT 590.05 AP-Checks for Approval (5/3/2023 - 3:48 PM) Page 1

Check Number Check Date Fund Name Account Name Vendor Name Void Amount 22359 04/28/2023 Atwater South LD Utilities MERCED IRRIGATION DISTRICT 420.32 22359 04/28/2023 Sewer Enterprise Fund Utilities MERCED IRRIGATION DISTRICT 648.13 22359 04/28/2023 Applegate Ranch Lndscp Utilities MERCED IRRIGATION DISTRICT 19.17 22359 04/28/2023 Applegate Ranch LD Utilities MERCED IRRIGATION DISTRICT 351.92 22359 04/28/2023 Mello Ranch 2 LD Utilities MERCED IRRIGATION DISTRICT 645.26 22359 04/28/2023 Gas Tax/Street Improvement Utilities MERCED IRRIGATION DISTRICT 677.90 22359 04/28/2023 Price Annexation LD Utilities MERCED IRRIGATION DISTRICT 204.61 22359 04/28/2023 Mello Ranch LD Utilities MERCED IRRIGATION DISTRICT 593.92 22359 04/28/2023 Mello Ranch LNDSCP Utilities MERCED IRRIGATION DISTRICT 57.50 22359 04/28/2023 Camellia Estates LD Utilities MERCED IRRIGATION DISTRICT 68.21 22359 04/28/2023 Juniper Meadows LD Utilities MERCED IRRIGATION DISTRICT 34.08 22359 04/28/2023 Camellia Meadows LD Utilities MERCED IRRIGATION DISTRICT 68.21 22359 04/28/2023 Stone Creek LD Utilities MERCED IRRIGATION DISTRICT 332.73 22359 0428/2023 Stone Creek LNDSCP Utilities MERCED IRRIGATION DISTRICT 19.17 22359 04/282023 America West LD Utilities MERCED IRRIGATION DISTRICT 151.18 22359 04/282023 Bell Crossing LD Utilities MERCED IRRIGATION DISTRICT 335.26 22359 0428/2023 Bell Crossing LNDSCP Utilities MERCED IRRIGATION DISTRICT 19.17 22359 04/28/2023 Meadow View LD Utilities MERCED IRRIGATION DISTRICT 665.32 22359 0428/2023 Aspenwood LD Utilities MERCED IRRIGATION DISTRICT 285.92 22359 04/28/2023 Water Enterprise Fund Utilities MERCED IRRIGATION DISTRICT 423.30 22359 04/28/2023 Sewer Enterprise Fund Utilities MERCED IRRIGATION DISTRICT 6,424.74 Check Total: 13,152.64
Report Total: 17,747.79
AP-Checks for Approval (5/3/2023 - 3:48 PM) Page 2

Accounts Payable
Checks for Approval
User:

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Check Number Check Date Fund Name Account Name Vendor Name Void Amount 0 05/08/2023 Sewer Enterprise Fund Cash with Fiscal Agent THE BANK OF NEW YORK MELLON 88,750.00 0 05/08/2023 Sewer Enterprise Fund Cash with Fiscal Agent THE BANK OF NEW YORK MELLON 187,090.63 0 05/08/2023 Sewer Enterprise Fund Cash with Fiscal Agent THE BANK OF NEW YORK MELLON 37,830.73 0 05/08/2023 Sewer Enterprise Fund Cash with Fiscal Agent THE BANK OF NEW YORK MELLON 57,500.00 Check Total: 371,171.36
22360 05/08/2023 Water Enterprise Fund Professional Services ABS PRESORT, INC. 1,005.81 22360 05/08/2023 Sewer Enterprise Fund Professional Services ABS PRESORT, INC. 1,005.81 22360 05/08/2023 Sanitation Enterprise Fund Professional Services ABS PRESORT, INC. 1,005.80 22360 05/08/2023 Sanitation Enterprise Fund Professional Services ABS PRESORT, INC. 1,166.87 22360 05/08/2023 Water Enterprise Fund Office Supplies ABS PRESORT, INC. 1,200.00 22360 05/08/2023 Sewer Enterprise Fund Office Supplies ABS PRESORT, INC. 1,200.00 22360 05/08/2023 Sanitation Enterprise Fund Office Supplies ABS PRESORT, INC. 1,200.00 Check Total: 7,784.29
22361 05/08/2023 Internal Service Fund Operations & Maintenance AIRGAS USA, LLC 197.45 Check Total: 197.45
22362 05/08/2023 General Fund Recreation Donations AMAZON CAPITAL SERVICES 630.75 22362 05/08/2023 General Fund Recreation Donations AMAZON CAPITAL SERVICES 322.98 22362 05/08/2023 General Fund Recreation Donations AMAZON CAPITAL SERVICES 371.90 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 33.70 22362 05/08/2023 Water Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 73.17 22362 05/08/2023 Water Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 76.02 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 97.86 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 40.00 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 46.74 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 19.36 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 108.74 22362 05/08/2023 ARPA-American Rescue Plan Act City Bldg - Civic Center #1 AMAZON CAPITAL SERVICES 34.09 22362 05/08/2023 ARPA-American Rescue Plan Act City Bldg - Civic Center #1 AMAZON CAPITAL SERVICES 47.95 22362 05/08/2023 Water Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 108.60 22362 05/08/2023 Water Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 107.40 AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 1

Check Number Check I)ate Fund Name Account Name Vendor Name Void Amount 22362 05/08/2023 Water Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 141.36 22362 05/08/2023 Sewer Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 216.90 22362 05/08/2023 Sewer Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 106.86 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 63.02 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 81.55 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 86.10 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 69.30 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 51.00 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 41.60 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 83.07 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 17.38 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 32.61 22362 05/08/2023 General Fund Ogee Supplies AMAZON CAPITAL SERVICES 15.20 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 66.15 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 19.35 22362 05/08/2023 General Fund Office Supplies AMAZON CAPITAL SERVICES 16.94 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 168.45 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 154.85 22362 05/08/2023 General Fund Uniform & Clothing Expense AMAZON CAPITAL SERVICES 135.93 22362 05/08/2023 General Fund Uniform & Clothing Expense AMAZON CAPITAL SERVICES 146.80 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 7.52 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 430.99 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 7.52 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 43.48 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 43.48 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 25.62 22362 05/08/2023 General Fund Coed Volleyball AMAZON CAPITAL SERVICES 88.24 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 36.95 22362 05/08/2023 General Fund Various Classes AMAZON CAPITAL SERVICES 9.24 22362 05/08/2023 General Fund Various Classes AMAZON CAPITAL SERVICES 70.63 22362 05/08/2023 Water Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 255.42 22362 05/08/2023 Water Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 429.55 22362 05/08/2023 Water Enterprise Fund Special Departmental Expense AMAZON CAPITAL SERVICES 40.66 22362 05/08/2023 Internal Service Fund Special Departmental Expense AMAZON CAPITAL SERVICES 30.78 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 85.89 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 440.40 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 95.69 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 28.90 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 21.25 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES 11.23 22362 05/08/2023 General Fund Track Meet AMAZON CAPITAL SERVICES 13.04 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 71.07 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES 62.60 22362 05/08/2023 Information Technology Fund Special Departmental Expense AMAZON CAPITAL SERVICES -26.89 AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 2

Check Number Check Date Fund Name Account Name Vendor Name Void Amount 22362 05/08/2023 General Fund Communications AMAZON CAPITAL SERVICES -129.28 22362 05/08/2023 General Fund Coed Volleyball AMAZON CAPITAL SERVICES -88.24 22362 05/08/2023 General Fund Special Departmental Expense AMAZON CAPITAL SERVICES -51.00 Check Total: 5,888.42
22363 05/08/2023 Internal Service Fund Utilities AMERIGAS - MODESTO 1,785.07 Check Total: 1,785.07
22364 05/08/2023 General Fund Communications AT and T - CALNET3 127.83 22364 05/08/2023 Northwood Village LD Communications AT and T - CALNET3 23.17 22364 05/08/2023 Meadow View LD Communications AT and T - CALNET3 23.17 22364 05/08/2023 Water Enterprise Fund Communications AT and T - CALNET3 253.33 22364 05/08/2023 Sewer Enterprise Fund Communications AT and T - CALNET3 348.08 22364 05/08/2023 Internal Service Fund Communications AT and T - CALNET3 519.45 Check Total: 1,295.03
22365 05/08/2023 Employee Benefits Fund Dental Insurance BENEFIT COORDINATORS CORPORATION (BC 3,818.80 Check Total: 3,818.80
22366 05/08/2023 General Fund Professional Services BEST BEST & KRIEGER 31,889.75 22366 05/08/2023 Sanitation Enterprise Fund Professional Services BEST BEST & KRIEGER 5,076.50 Check Total: 36,966.25
22367 05/08/2023 Gas Tax/Street Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 100.14 22367 05/08/2023 Water Enterprise Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 18.88 22367 05/08/2023 Gas Tax/Strcet Improvement Special Departmental Expense BIG CREEK LUMBER COMPANY 72.15 22367 05/08/2023 Internal Service Fund Special Departmental Expense BIG CREEK LUMBER COMPANY 58.16 Check Total: 249.33
22368 05/08/2023 Sewer Enterprise Fund Machinery & Equipment BOGIE'S PUMP SYSTEMS 7,119.71 Check Total: 7,119.71
22369 05/08/2023 Sewer Enterprise Fund Uniform & Clothing Expense BOOT BARN 200.00 22369 05/08/2023 Sewer Enterprise Fund Uniform & Clothing Expense BOOT BARN 200.00 22369 05/08/2023 General Fund Uniform & Clothing Expense BOOT BARN 200.00 Check Total: 600.00
22370 05/08/2023 Sewer Enterprise Fund Special Departmental Expense JIM BRISCO ENTERPRISES 69.60 Check Total: 69.60
22371 05/08/2023 Water Enterprise Fund Professional Services BSK ASSOCIATES 204.00 -.
--
AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 3

Check Number Check Datc Fund Name Account Name Vendor Name Void Amount 22371 05/08/2023 Water Enterprise Fund Professional Services BSK ASSOCIATES 204.00 22371 05/08/2023 Water Enterprise Fund Professional Services BSK ASSOCIATES 204.00 22371 05/08/2023 Water Enterprise Fund Professional Services BSK ASSOCIATES 204.00 22371 05/08/2023 Water Enterprise Fund Professional Services BSK ASSOCIATES 58.50 22371 05/08/2023 1,2,3-TCP Fund Professional Services BSK ASSOCIATES 952.50 22371 05/08/2023 1,2,3-TCP Fund Professional Services BSK ASSOCIATES 952.50 Check Total: 2,779.50
22372 05/08/2023 Gas Tax/Street Improvement Special Departmental Expense CAL FARM SERVICES 26.92 22372 05/08/2023 Gas Tax/Street Improvement Professional Services CAL FARM SERVICES 60.00 Check Total: 86.92
22373 05/08/2023 General Fund Special Departmental Expense CALIFORNIA LANDSCAPE SUPPLY, INC. 1,974.29 Check Total: 1,974.29
22374 05/08/2023 General Fund Special Departmental Expense CHURCHCHAIRS4LESS.COM 4,208.12 Check Total: 4,208.12
22375 05/08/2023 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 12.65 22375 05/08/2023 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 15.02 22375 05/08/2023 Internal Service Fund Special Departmental Expense CINTAS CORP 26.41 22375 05/08/2023 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 35.81 22375 05/08/2023 General Fund Uniform & Clothing Expense CINTAS CORP 20.75 22375 05/08/2023 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 70.58 22375 05/08/2023 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 57.32 22375 05/08/2023 Internal Service Fund Special Departmental Expense CINTAS CORP 26.41 22375 05/08/2023 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 15.02 22375 05/08/2023 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 12.65 22375 05/08/2023 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 35.81 22375 05/08/2023 General Fund Uniform & Clothing Expense CINTAS CORP 21.34 22375 05/08/2023 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 70.58 22375 05/08/2023 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 57.32 22375 05/08/2023 Internal Service Fund Special Departmental Expense CINTAS CORP 26.41 22375 05/08/2023 General Fund Uniform & Clothing Expense CINTAS CORP 27.81 22375 05/08/2023 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 12.65 22375 05/08/2023 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 15.02 22375 05/08/2023 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 42.30 22375 05/08/2023 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 66.38 22375 05/08/2023 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 57.32 22375 05/08/2023 Internal Service Fund Special Departmental Expense CINTAS CORP 26.41 22375 05/08/2023 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 12.65 22375 05/08/2023 Internal Service Fund Uniform & Clothing Expense CINTAS CORP 15.02 22375 05/08/2023 Water Enterprise Fund Uniform & Clothing Expense CINTAS CORP 57.32 AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 4
.-

Check Number Check Date Fund Name Account Name Vendor Name Void Amount 22375 05/08/2023 General Fund Uniform & Clothing Expense CINTAS CORP 27.81 22375 05/08/2023 Gas Tax/Street Improvement Uniform & Clothing Expense CINTAS CORP 42.30 22375 05/08/2023 Sewer Enterprise Fund Uniform & Clothing Expense CINTAS CORP 66.38 Check Total: 973.45
22376 05/08/2023 Internal Service Fund Communications COMCAST CABLE 13.28 Check Total: 13.28
22377 05/08/2023 General Fund Special Departmental Expense CONSOLIDATED ELECTRICAL DISTRIBUTORS 101.43 Check Total: 101.43
22378 05/08/2023 General Fund Community Center Rental ANISA COTA 100.00 Check Total: 100.00
22379 05/08/2023 General Fund Inspection Fees CSG CONSULTANTS, INC. 4,032.00 Check Total: 4,032.00
22380 05/08/2023 General Fund Professional Services D & D PEST CONTROL 290.00 22380 05/08/2023 General Fund Professional Services D & D PEST CONTROL 1,165.00 22380 05/08/2023 General Fund Professional Services D & D PEST CONTROL 585.00 Check Total: 2,040.00
22381 05/08/2023 Information Technology Fund Professional Services DATA PATH, INC. 8,680.00 22381 05/08/2023 Information Technology Fund Professional Services DATA PATH, INC. 2,530.00 22381 05/08/2023 Information Technology Fund Memberships & Subscriptions DATA PATH, INC. 2,491.00 Check Total: 13,701.00
22382 05/08/2023 Internal Service Fund Professional Services ELITE IRON FENCING 675.00 Check Total: 675.00
22383 05/08/2023 General Fund Community Center Deposits ENGLISH CONGREGATION OF JEHOVAH'S WI" 350.00 Check Total: 350.00
22384 05/08/2023 General Fund Office Supplies ETCI-I TI-IIS AND TI-IAT 17.50 22384 05/08/2023 General Fund Miscellaneous ETCH THIS AND THAT 128.10 Check Total: 145.60
22385 05/08/2023 Sewer Enterprise Fund Special Departmental Expense FASTENAL COMPANY 204.59 Check Total: 204.59
22386 05/08/2023 General Fund Office Supplies FEDERAL EXPRESS 81.72 AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 5

Check Number Check Date Fund Name Account Name Vendor Name Void Amount 22386 05/08/2023 General Fund Otlice Supplies FEDERAL EXPRESS 95.45 Check Total: 177.17 y22387 05/08/2023 Water Fund Capital Replacement Installation-New Water Meters FERGUSON ENTERPRISES INC. #690 1,539.73 22387 05/08/2023 Water Fund Capital Replacement Installation-New Water Meters FERGUSON ENTERPRISES INC. #690 973.06 22387 05/08/2023 Water Fund Capital Replacement Installation-New Water Meters FERGUSON ENTERPRISES INC. #690 2,863.82 Check Total: 5,376.61
22388 05/08/2023 ARPA-American Rescue_ Plan Act City Bldg - Civic Center #2 FRESNO ROOFING COMPANY, INC. 7.500.00 22388 05/08/2023 Internal Service Fund Professional Services FRESNO ROOFING COMPANY, INC. 10,750.00 Check Total: 18,250.00 1--
22389 05/08/2023 General Fund Travel/Conferences/Meetings KRISTINA GARDNER 242.60 Check Total: 242.60
22390 05/08/2023 SB1-Road Maint & Rehab RMRA Broadway Traffic Retasking GIID 224.52 Check Total: 224.52
22391 05/08/2023 Water Enterprise Fund Special Departmental Expense GRAINGER, INC. 190.68 Check Total: 190.68
22392 05/08/2023 General Fund Community Center Deposits SHEILA GREENWOOD 210.00 22392 05/08/2023 General Fund Community Center Deposits SHEILA GREENWOOD 350.00 Check Total: 560.00
22393 05/08/2023 Sanitation Enterprise Fund Professional Services IIF&II CONSULTANTS 5,597.50 Check Total: 5,597.50
22394 05/08/2023 Internal Service Fund Utilities HOFFMAN ELECTRONIC SYSTEMS 55.00 22394 05/08/2023 Internal Service Fund Utilities HOFFMAN ELECTRONIC SYSTEMS 719.95 Check Total: 774.95
22395 05/08/2023 Gas Tax/Street Improvement Special Departmental Expense HORIZON 80.73 22395 05/08/2023 General Fund Special Departmental Expense HORIZON 763.86 22395 05/08/2023 Water Enterprise Fund Special Departmental Expense HORIZON 214.64 Check Total: 1,059.23
22396 05/08/2023 Information Technology Fund Special Departmental Expense INDUSTRIES MARKETING LLC 3,400.00 Check Total: 3,400.00
22397 05/08/2023 General Fund Track Meet INGRAHAM TROPHIES 433.91 AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 6

Check Number Check Date Fund Name Account Name Vendor Name Void Amount Check Total: 433.91
22398 05/08/2023 Water Enterprise Fund Accounts Payable LYNETTE JACOBS 120.34 22398 05/08/2023 Sewer Enterprise Fund Accounts Payable LYNETTE JACOBS 142.88 22398 05/08/2023 Sanitation Enterprise Fund Accounts Payable LYNETTE JACOBS 50.90 22398 05/08/2023 Sanitation Enterprise Fund Accounts Payable LYNETTE JACOBS 15.86 Check Total: 329.98
22399 05/08/2023 Measure V Regional Fund Bellevue Road Realignment JLB TRAFFIC ENGINEERING, INC 916.15 22399 05/08/2023 Gas Tax/Street Improvement Professional Services JLB TRAFFIC ENGINEERING, INC 2,115.13 22399 05/08/2023 Local Transportation Fund Atw Blvd & First St Signal JLB TRAFFIC ENGINEERING, INC 1,187.13 Check Total: 4,218.41
22400 05/08/2023 Internal Service Fund Small Tools KELLOGG'S SUPPLY 23.24 Check Total: 23.24
22401 05/08/2023 General Fund Castle Park Deposits ANA LEON 200.00 Check Total: 200.00
22402 05/08/2023 General Fund Miscellaneous LOOMIS DEPT. 0757 524.32 Check Total: 524.32
22403 05/08/2023 Measure V Regional Fund Bellevue Road Realignment MARK THOMAS & COMPANY, INC 32,503.23 Check Total: 32,503.23
22404 05/08/2023 General Fund Youth Basketball MERCED AREA SPORTS OFFICIALS, INC 890.00 22404 05/08/2023 General Fund Coed Volleyball MERCED AREA SPORTS OFFICIALS, INC 150.00 22404 05/08/2023 General Fund Coed Volleyball MERCED AREA SPORTS OFFICIALS, INC 75.00 22404 05/08/2023 General Fund Coed Volleyball MERCED AREA SPORTS OFFICIALS, INC 50.00 22404 05/08/2023 General Fund Coed Volleyball MERCED AREA SPORTS OFFICIALS, INC 350.00 Check Total: 1,515.00
22405 05/08/2023 Internal Service Fund Operations & Maintenance MERCED CI-IEVROLET 177.33 22405 05/08/2023 Internal Service Fund Professional Services MERCED CHEVROLET 2,925.00 22405 05/08/2023 Internal Service Fund Operations & Maintenance MERCED CI-IEVROLET 1,785.98 Check Total: 4,888.31
22406 05/08/2023 General Fund Professional Services MERCED COUNTY ANIMAL CONTROL 6,470.00 Check Total: 6,470.00
22407 05/08/2023 Sanitation Enterprise Fund Professional Services MERCED COUNTY REGIONAL (1004) 108.06 _
~.

AP-Chccks for Approval (5/3/2023 - 3:49 PM) Page 7

Check Number Check Date Fund Name Account Name Vendor Name Void Amount Check Total: 108.06
22408 05/08/2023 Internal Service Fund Operations & Maintenance MERCED TRUCK & TRAILER INC. 763.52 22408 05/08/2023 Internal Service Fund Operations & Maintenance MERCED TRUCK & TRAILER INC. 346.27 Check Total: 1,109.79
22409 05/08/2023 General Fund Fire Marshal Supplies MINUTEMAN PRESS, MERCED 302.02 Check Total: 302.02
22410 05/08/2023 Water Enterprise Fund Special Departmental Expense MUNIQUIP, LLC 4,943.87 Check Total: 4,943.87
22411 05/08/2023 General Fund Professional Services MUNISERVICES LLC 9,769.87 22411 05/08/2023 General Fund Professional Services MUNISERVICES LLC 741.85 Check Total: 10,511.72
22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 39.27 22412 05/08/2023 Internal Service Fund Small Tools O'REILLY AUTO PARTS 1.26 22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 173.57 22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 254,83 22412 05/08/2023 Sewer Enterprise Fund Special Departmental Expense O'REILLY AUTO PARTS 38.58 22412 05/08/2023 Gas Tax/Street Improvement Special Departmental Expense O'REILLY AUTO PARTS 9.78 22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 152.85 22412 05/08/2023 General Fund Special Departmental Expense O'REILLY AUTO PARTS 10.86 22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 196.65 22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 13.96 22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILIYALJTO PARTS 21.74 22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 148.29 22412 05/08/2023 Internal Service Fund Operations & Maintenance O'REILLY AUTO PARTS 15.65 Check Total: 1,077.29
22413 05/08/2023 General Fund Bloss House THOMAS OROSCO 350.00 Check Total: 350.00
22414 05/08/2023 I.,ocal Transportation Fund Atw Blvd & First St Signal PACIFIC GAS & ELECTRIC 1,500.00 22414 05/08/2023 General Fund Utilities PACIFIC GAS & ELECTRIC 295.61 22414 05/08/2023 General Fund Utilities PACIFIC GAS & ELECTRIC 241.23 22414 05/08/2023 General Fund Utilities PACIFIC GAS & ELECTRIC 154.18 22414 05/08/2023 Gas Tax/Street Improvement Utilities PACIFIC GAS & ELECTRIC 238.73 22414 05/08/2023 Water Enterprise Fund Utilities PACIFIC GAS & ELECTRIC 24,376.48 22414 05/08/2023 Sewer Enterprise Fund utilities PACIFIC GAS & ELECTRIC 1,286.24 22414 05/08/2023 Internal Service Fund Utilities PACIFIC GAS & ELECTRIC 24.64 AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 8

Check Number Check Date Fund Name Account Name Vendor Name Void Amount Check Total: 28,1 17.11
22415 05/08/2023 1,2,3-TCP Fund TCP Remediation Project PRECISION CIVIL ENGINEERING, INC. 26,550.00 22415 05/08/2023 General Fund Capital Phase 3 Ped Imp Proj Downtown PRECISION CIVIL ENGINEERING, INC. 283.30 22415 05/08/2023 Measure V 20% AlternativeModes Phase 3 Ped Imp Proj Downtown PRECISION CIVIL, ENGINEERING, INC. 36.70 Check Total: 26,870.00
22416 05/08/2023 General Fund Special Departmental Expense PRESTON'S LOCK & KEY 117.45 Check Total: 117.45
22417 05/08/2023 General Fund Training PR! MANAGEMENT GROUP 259.00 22417 05/08/2023 General Fund Training PR! MANAGEMENT GROUP 259.00 22417 05/08/2023 General Fund Training PRI MANAGEMENT GROUP 259.00 22417 05/08/2023 General Fund Training PR! MANAGEMENT GROUP 159.00 Check Total: 936.00
22418 05/08/2023 Water Fund Capital Replacement Well #20A Rehab PROVOST & PRITCI LARD CONSULTING GROU 6,016.16 Check Total: 6,016.16
22419 05/08/2023 Internal Service Fund Operations & Maintenance RAZZARI DODGE 287.95 Check Total: 287.95
22420 05/08/2023 Internal Service Fund Professional Services ROTO ROOTER PLUMBERS 3,500.00 Check Total: 3,500.00
22421 05/08/2023 Sewer Enterprise Fund Project Retention RTC CONSTRUCTION MANAGEMENT, INC. -9,487.62 22421 05/08/2023 Sewer Enterprise Fund Sewer Lift Station Imprvmnts RTC CONSTRUCTION MANAGEMENT, INC. 189,752.50 Check Total: 180,264.88
22422 05/08/2023 General Fund Community Center Rental RAMESH SABLOK 100.00 Check Total: 100.00
22423 05/08/2023 Water Enterprise Fund Professional Services SAN JOAQUIN VALLEY AIR 99.00 22423 05/08/2023 Water Enterprise Fund Professional Services SAN JOAQUIN VALLEY AIR 99.00 22423 05/08/2023 Water Enterprise Fund Professional Services SAN JOAQUIN VALLEY AIR 99.00 22423 05/08/2023 Water Enterprise Fund Professional Services SAN JOAQUIN VALLEY AIR 99.00 22423 05/08/2023 Water Enterprise Fund Professional Services SAN JOAQUIN VALLEY AIR 99.00 22423 05/08/2023 Sewer Enterprise Fund Professional Services SAN JOAQUIN VALLEY AIR 99.00 22423 05/08/2023 Water Enterprise Fund Professional Services SAN JOAQUIN VALLEY AIR 99.00 Check Total: 693.00
AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 9
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Check Number Check Date Fund Name Account Name Vendor Name Void Amount 22424 05/08/2023 General Fund Professional Services SANTA FE PET HOSPITAL 186.75 22424 05/08/2023 General Fund Professional Services SANTA FE PET HOSPITAL 115.50 Check Total: 302.25
22425 05/08/2023 General Fund Training DAVE SARGINSON 259.00 Check Total: 259.00
22426 05/08/2023 Water Enterprise Fund Professional Services SHANNON PUMP CO. 418.39 Check Total: 418.39
22427 05/08/2023 Sewer Enterprise Fund Special Departmental Expense SIERRA MATERIALS & TRUCKING COMPANY 238.06 Check Total: 238.06
22428 05/08/2023 General Fund Castle Park Deposits PATRICIA SOI,ORIO 200.00 Check Total: 200.00
22429 05/08/2023 General Fund Professional Services SPEEDO CHECK 440.00 Check Total: 440.00
22430 05/08/2023 Information Technology Fund Professional Services SPRINGBROOK SOFTWARE LLC 58,943.71 Check Total: 58,943.71
22431 05/08/2023 Water Enterprise Fund Professional Services TELSTAR INSTRUMENTS 1,879.00 Check Total: 1,879.00
22432 05/08/2023 Local Transportation Fund Project Retention TERRA WEST CONSTRUCTION INCORPORATE -8,148.25 22432 05/08/2023 Local Transportation Fund LTF-Laurel Area Sdwlk Imp Proj TERRA WEST CONSTRUCTION INCORPORATE 162,965.00 Check Total: 154,816.75
22433 05/08/2023 Internal Service Fund Operations & Maintenance VAN DE POL 10,522.41 Check Total: 10,522.41
22434 05/08/2023 General Fund Communications VERIZON WIRELESS 560.14 Check Total: 560.14
22435 05/08/2023 Employee Benefits Fund Vision Insurance VISION SERVICE PLAN (CA) 1,098.75 Check Total: 1,098.75
22436 05/08/2023 Water Fund Capital Replacement Project Retention W.M. LYLES COMPANY -2,055.50 22436 05/08/2023 Water Fund Capital Replacement Well #20A Rehab W.M. LYLES COMPANY 41,110.00 22436 05/08/2023 1,2,3-TCP Fund Well #20A Rehab W.M. LYLES COMPANY 24,030.00 AP-Checks for Approval (5/3/2023 - 3:49 PM) Page 10
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.,-
'

Check Number Check Date Fund Name Account Name Vendor Name Void Amount 22436 05/08/2023 1,2,3-TCP Fund Project Retention W.M. LYLES COMPANY -1,201.50 Check Total: 61,883.00
22437 05/08/2023 Internal Service Fund Special Departmental Expense WARD ENTERPRISES 158.86 22437 05/08/2023 Internal Service Fund Special Departmental Expense WARD ENTERPRISES 41.89 Check Total: 200.75
22438 05/08/2023 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 116.57 22438 05/08/2023 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 105.55 22438 05/08/2023 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 29.79 22438 05/08/2023 Gas Tax/Street Improvement Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 2.97 22438 05/08/2023 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 78.95 22438 05/08/2023 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 14.40 22438 05/08/2023 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 40.90 22438 05/08/2023 Water Enterprise Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 107.04 22438 05/08/2023 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 14.34 22438 05/08/2023 General Fund Special Departmental Expense WATERFORD IRRIGATION SUPPLY, INC 74.05 Check Total: 584.56
22439 05/08/2023 General Fund Professional Services WEED MAN 3,245.00 Check Total: 3,245.00
22440 05/08/2023 General Fund Community Center Deposits ADRIENNE WERNER 210.00 22440 05/08/2023 General Fund Community Center Deposits ADRIENNE WERNER 350.00 Check Total: 560.00
Report Total: 1,116,747.22
AP-Chccks for Approval (5/3/2023 - 3:49 PM) Page 11

CITY OF ATWATER
Minutes

CITY COUNCIL

ACTION MINUTES
April 24, 2023
OPEN SESSION: (Council Chambers)
The City Council of the City of Atwater met in Open Session this date at 5:30 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Mayor Nelson presiding.

ROLL CALL:

Present: City Council Members Ambriz, Cale, Mayor Pro Tem Raymond, Mayor Nelson

Absent: City Council Member Button
Staff Present: City Manager Waterman, City Attorney Splendorio, Community Development Director Thompson. Interim Human Resources
Director Sousa, Public Works Director Vinson, Deputy City Clerk Martin
CLOSED SESSION: (Conference Room A)
Mayor Nelson invited public comment on Closed Session items.

No one came forward to speak.

Mayor Nelson adjourned the meeting to Conference Room A for Closed Session at 5:31 PM. Closed Session was called to order at 5:35 PM.

City Council Member Button joined Closed Session in Conference Room A at 5:37 PM.

City Council Meeting Action Minutes for April 24, 2023 Page 2 Conference with Labor Negotiators - Government Code Section 54957.6, Agency Negotiators: City Manager Waterman, Interim Human Resources Director Sousa, Bargaining Units: Atwater Police Officers Association
Closed Session adjourned at 6:01 PM.

REGULAR SESSION: (Council Chambers)
The City Council of the City of Atwater met in Regular Session this date at 6:06 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Mayor Nelson presiding.

INVOCATION:

The Invocation was led by Pastor Rich Miller.

PLEDGE OF ALLEGIANCE TO THE FLAG:

The Pledge of Allegiance was led by Mayor Nelson.

ROLL CALL: (City Council)

Present: City Council Members Ambriz, Button, Cale, Mayor Pro Tem Raymond, Mayor Nelson
Staff Present: City Manager Waterman, City Attorney Splendorio, Battalion Chief Ayuso, Police Chief Salvador, Community Development Director Thompson, Public Works Director Vinson, Interim Human Resources Director Sousa, City Clerk Billings, Deputy City Clerk Martin
MAYOR OR CITY ATTORNEY REPORT OUT FROM CLOSED SESSION:

City Attorney Splendorio reported that the City Council discussed the item, provided direction, and there was no reportable action.

SUBSEQUENT NEED ITEMS: None
APPROVAL OF AGENDA AS POSTED OR AS AMENDED:

Mayor Nelson asked that the adjournment for the meeting be moved to the beginning of the agenda.

MOTION: Mayor Pro Tem Raymond moved to approve the agenda as amended. The motion was seconded by City Council Member Cale and the vote was: Ayes: Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent: None. The motion passed.

City Council Meeting Action Minutes for April 24, 2023 Page 3 CEREMONIAL MATTERS:

Mayor Pro Tem Raymond spoke regarding the passing of Jean Kirby.

Certificate of Recognition - Atwater High School CCC Student Athletes City Council Member Cale and Ambriz presented certificates of recognition to the Atwater High School CCC Student Athletes for their achievements.

Proclamations
National Crime Victims' Rights Week, April 23-29, 2023
Mayor Nelson presented the proclamation on behalf of the City Council to District Attorney Silveira, recognizing the Week of April 23 - 29, as Crime Victims’ Rights Week.

National Public Safety Telecommunicators Week, April 9-15, 2023 Mayor Nelson presented the proclamation to Police Chief Salvador, on behalf of the Atwater Police Department, recognizing the Week of April 9 - 15, as National Public Safety Telecommunicators Week.

Professional Municipal Clerks Week, April 30 - May 6, 2023 Mayor Nelson presented the proclamation to City Clerk Billings, on behalf of the City Clerk's Office, recognizing the Week of April 30-May 6, as Professional Municipal Clerks Week.

PRESENTATIONS:

Monthly report by Merced County District 3 Supervisor McDaniel, County Executive Officer Mendez, and Assistant County Executive Officer Hendrickson County Executive Officer Mendez and Assistant County Executive Officer Hendrickson provided a PowerPoint presentation regarding the Castle Commerce community update.

Merced County District 3 Supervisor McDaniel reported the following:
• Supervisor McDaniel provided an update regarding Patriot Rail. • Spoke regarding Private Sector projects and the facilitation process.

CONSENT CALENDAR:

Mayor Nelson opened public comment regarding items on the Consent Calendar.

City Council Meeting Action Minutes for April 24, 2023 Page 4 Rich Miller spoke regarding item # 5 on the consent calendar and asked for further clarification.

No one else came forward to speak.

Mayor Nelson closed the public comment.

Agenda item #5 under Resolutions, “Authorizing the City Manager to make specified modifications for time extensions and/or tax rates for existing Cannabis businesses during their transition to the Cannabis Regulatory Program under Chapter 5.70” was removed from the Consent Calendar for separate discussion and possible action.

MOTION: City Council Member Cale moved to approve the Consent Calendar as amended. The motion was seconded by Mayor Pro Tem Raymond and the vote was: Ayes: Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent: None.

The motion passed.

TREASURER’S REPORT:

1. March 31, 2023
ACTION: Approval of report as listed.

WARRANTS:

2. April 24, 2023
ACTION: Approval of warrants as listed.

MINUTES: (City Council)

3. a) April 7, 2023 – Special Meeting
b) April 10, 2023 – Regular Meeting
ACTION: Approval of minutes as listed
MINUTES: (Planning Commission)

4. a) October 19, 2022 – Regular meeting
b) January 18, 2023 – Regular meeting
c) February 15, 2023 – Regular meeting
d) March 15, 2023 – Regular meeting
ACTION: Acceptance of minutes as listed

City Council Meeting Action Minutes for April 24, 2023 Page 5 RESOLUTIONS:

5. Authorizing the City Manager to make specified modifications for time extensions and/or tax rates for existing Cannabis businesses during their transition to the Cannabis Regulatory Program under Chapter 5.70 (Community Development Director Thompson)
This item was removed from the consent calendar for separate discussion and possible action.

Mayor Nelson asked for clarification regarding the item.

Community Development Director Thompson provided background information on this item.

Rich Miller asked for clarification regarding the item and for a report regarding outstanding Cannabis businesses.

MOTION: Mayor Pro Tem Raymond moved to approve Agenda item #5; Adoption of Resolution No. 3389-23 authorizing the City Manager to make specified modifications for time extension and/or tax rates for existing Cannabis businesses during their transition to the Cannabis regulatory program under Chapter 5.70. The motion was seconded by City Council Member Button and the vote was: Ayes:

Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent: None. The motion passed.

6. Approving Budget Amendment No. 18 regarding American Rescue Plan Act Fund for the Police Department Remodel/Rehab Project (Public Works Director Vinson and Police Chief Salvador)
ACTION: Adoption of Resolution No. 3390-23 approving Budget Amendment No. 18 amending the Fiscal Year 2022-23 Budget to allocate funding from Capital Project Fund in the amount of $220,000 to the Police Department Remodel/ Rehabilitation.

AGREEMENTS:

7. Awarding a Purchase to Aqua Metric for Water Meters and Transmitters (Public Works Director Vinson)
ACTION: Waives the Formal Procurement Process and awards a sole source purchase to Aqua Metric of Sacramento, California for water meters and transmitters, in an amount not to exceed $274,158.75; and authorizes and directs the City Manager, or her designee, to execute the Purchase Order on behalf of the City.

8. Approving Second Amendment to Professional Services Agreement with RSG,

City Council Meeting Action Minutes for April 24, 2023 Page 6 Inc. for the preparation of Development Impact Fee Reporting requirements in relation to AB 1600 and the Mitigation Fee Act (Community Development Director Thompson)
ACTION: Approves the Second Amendment to the Professional Services Agreement in a form approved by the City Attorney, with RSG, Inc for the preparation of Development Impact Fee Reporting requirements in relation to AB 1600 and the Mitigation Fee Act in a new amount not to exceed $37,210.00; and authorizes and directs the City Manager to sign all documents on behalf of the City.

ORDINANCES (WAIVING SECOND READING AND ADOPTION):

9. Adoption of an Ordinance amending Sections 5.54.120 and 5.54.130 and Adding Sections 5.54.150, 5.54.160, 5.54.170, 5.54.180, 5.54.190, and 5.54.200 to the Atwater Municipal Code Regarding Fireworks, and Determining the Ordinance to be Exempt from CEQA(CAL FIRE Battalion Chief Ayuso and Police Chief Salvador)
ACTION: Adoption of an ordinance amending Sections 5.54.120 and 5.54.130 and Adding Sections 5.54.150, 5.54.160, 5.54.170, 5.54.180, 5.54.190, and 5.54.200 to the Atwater Municipal Code Regarding Fireworks, and Determining the Ordinance to be Exempt from CEQA.

PUBLIC HEARINGS:

Waive the first reading, by title only and introducing an ordinance amending Section

3.45.140 of the Atwater Municipal Code related to the Citizens' Oversight Committee (City Manager Waterman)
City Manager Waterman provided background information on this item.

Mayor Nelson opened the public hearing.

No one came forward to speak.

Mayor Nelson closed the public hearing.

MOTION: City Council Member Button moved to waive the first reading, by title only, and introduce Ordinance No. CS 1061 amending Section 3.45.140 of the Atwater Municipal Code related to the Citizens' Oversight Committee. The motion was seconded by Mayor Pro Tem Raymond and the vote was: Ayes: Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent: None. The motion passed.

REPORTS AND PRESENTATIONS FROM STAFF:

Awarding a General Construction Contract for the Palm Avenue Improvements Project (Community Development Director Thompson and Public Works Director Vinson)

City Council Meeting Action Minutes for April 24, 2023 Page 7 Mayor Pro Tem recused himself from the item and left the dais at 7:09 PM.

Community Development Director Thompson provided background information on this item.

Public Works Director Vinson provided background information on this item.

City Council Member Cale asked regarding the scope of the project.

City Council Member Button thanked city staff for quickly working on this item.

Mayor Nelson asked if anyone would like to come forward and speak on this item.

MOTION: City Council Member Button moved to award a General Construction Agreement, in a form approved by the City Attorney, to Redstone Construction Inc. of Atwater, California, for the Palm Avenue Improvements Project, City Project 22- 06, in an amount not to exceed $111,600.00 and authorize construction contract change orders up to an aggregate amount of $11,160.00 (10%); and authorizes and directs the City Manager or her designee to execute all contract documents on behalf of the City. The motion was seconded by City Council Member Ambriz and the vote was: Ayes: Cale, Ambriz, Button, Nelson; Noes: None; Abstain: Raymond.

The motion passed.

Mayor Pro Tem Raymond returned to the dais at 7:15 PM.

Approving an Amended and Restated Agreement with Veolia Water West Operating Service, Inc. for the Operations and Maintenance Program for the Regional Wastewater Treatment Plant (Public Works Director Vinson)
Public Works Director Vinson provided background information on this item.

Mayor Nelson asked if anyone would like to come forward and speak on this item.

Kory Billings spoke regarding the positive relationship between Veolia, the City of Atwater, and community groups.

MOTION: Mayor Pro Tem Raymond moved to approve an Amended and Restated Agreement, in a form approved by the City Attorney, with Veolia Water West Operating Service, Inc. for the Operations and Maintenance Program for the Regional Wastewater Treatment Plant in the amount of $2,031,519; and authorizes and directs the City Manager, or her designee, to execute the contract on behalf of the City. The motion was seconded by City Council Member Ambriz and the vote was: Ayes: Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent: None.

The motion passed.

City Council Meeting Action Minutes for April 24, 2023 Page 8 Approving specifications and authorizing advertising of a Request for Proposal for the acquisition of a Public Safety Radio Communications System for the Police Department (Police Chief Salvador)
Police Chief Salvador provided background information of this item.

Mayor Nelson asked if anyone would like to come forward and speak on this item.

MOTION: Mayor Pro Tem Raymond moved to approve specifications and authorize the advertisement of a Request for Proposal for the acquisition of a dedicated Public Safety Radio Communications System for the Police Department. The motion was seconded by City Council Member Cale and the vote was: Ayes: Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent: None. The motion passed.

Human Resources Director Employment Agreement (City Manager Waterman) City Manager Waterman provided background information on this item.

Mayor Nelson asked if anyone would like to come forward and speak on this item.

MOTION: City Council Member Cale moved to approve approve Human Resources Director Employment Agreement in the annual amount of $136,731.84 plus benefits with Jana R. Sousa; and to authorize and direct the City Manager to execute the Agreement on behalf of the City. The motion was seconded by City Council Member Cale and the vote was: Ayes: Cale, Ambriz, Raymond, Button, Nelson; Noes: None; Absent: None. The motion passed.

Human Resources Director Sousa introduced herself and thanked the Mayor and City Council and city staff.

CITY MANAGER REPORTS/UPDATES:

City Manager Updates
City Manager Waterman provided information regarding the invitation that was received from the Governor’s Office of Housing and Community Development to attend a Policy Conference.

City staff will be bringing the following City Council meeting the contract for the General Plan update.

COMMENTS FROM THE PUBLIC:

Notice to the public was read.

Mayor Nelson clarified that under the Brown Act, members of the public are entitled to directly address the City Council and are not entitled to address their comments

City Council Meeting Action Minutes for April 24, 2023 Page 9 to other members of the public or to staff.

Mayor Nelson opened the public comment.

Field Representative for Congressman John Duarte, Christan Santos spoke regarding the recent Honor flight and budget meetings.

Pastor Rich Miller thanked the Mayor, City Council, and staff for always providing clarification and working together.

No one else came forward to speak.

Mayor Nelson closed the public comment.

CITY COUNCIL REPORTS/UPDATES:

City Council comments
City Council Member Cale congratulated Human Resources Director Sousa as well as Atwater High School student athletes. He spoke regarding the loss of Jean Kirby.

City Council Member Button congratulated Human Resources Director Sousa. He spoke regarding Atwater Castle Air Museum Golf Tournament as well McNamara Sports celebrating 100 years.

City Council Member Ambriz congratulated Atwater High School student athletes.

He spoke regarding the culture of staff and the positivity and congratulated Human Resources Director Sousa.

Mayor Pro Tem Raymond congratulated Human Resources Director Sousa.

Mayor Nelson spoke regarding the Public Leaders’ Summit that was attended by himself, City Manager Waterman and Community Development Director Thompson.

ADJOURNMENT:

Mayor Nelson adjourned the meeting in memory of Jean Kirby at 7:40 PM. ________________________________

JANELL MARTIN

DEPUTY CITY CLERK

'

GENERAL PLAN TECHNICAL ADVISORY COMMITTEE

ACTION MINUTES
February 1, 2023
REGULAR SESSION: (Council Chambers)
The G e n e r a I P I a n Te c h n i c a I A d v i s o r y C o m m i t t e e of the City of Atwater met in Regular Session this date at 6:02 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Committee Member Nelson presiding.

PLEDGE OF ALLEGIANCE:

The Pledge of Allegiance was led by Committee Member Raymond.

ROLL CALL:

Present:

Absent:

Staff Present:

Committee Members Daugherty, Murphy, Nelson, Raymond,
Reed
None
Battalion Chief Lopes, Battalion Chief Ayuso, Community Development Director Thompson, Senior Planner Rashe,
Recording Secretary Rashad
SUBSEQUENT NEED ITEMS: None
APPROVAL OF AGENDA AS POSTED OR AS AMENDED:

MOTION: Committee Member Murphy moved to approve the agenda as posted. The motion was seconded by Committee Member Daugherty and the vote was: Ayes:

Daugherty, Nelson, Murphy, Raymond, Reed; Noes: None; Absent: None. The motion passed.

OVERVIEW OF GENERAL PLAN UPDATE:

Cortese-Knox-Hertzberg Act
LAFCo Representative Bill Nicholson presented a PowerPoint on this item.

LAFCo Representative
LAFCo Representative Bill Nicholson presented a PowerPoint on this item.

Request for Proposals - General Plan Update and Master EIR Community Development Director Thompson provided a verbal update on the General Plan Update and Master EIR which would be released the second week of February.

COMMENTS FROM THE PUBLIC:

Committee Member Nelson opened Public Comment.

Notice to the public was read.

City Resident, Sam spoke regarding Affordable Housing Act.

No one else came forward to speak.

Committee Member Nelson closed the Public Comment.

ADJOURNMENT:

Committee Member Nelson adjourned the meeting at 7:11 PM.

By: Kayla Rashad,
Recording Secretary

CIW OF A.-:wlA 1:1:R

GENERAL PLAN TECHNICAL ADVISORY COMMITTEE

ACTION MINUTES
March 1st, 2023
REGULAR SESSION: (Council Chambers)
The G e n e r a I P I a n Te c h n i c a I A d v i s o r y C o m m i t t e e of the City of Atwater met in Regular Session this date at 6:02 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Committee Member Nelson presiding.

PLEDGE OF ALLEGIANCE:

The Pledge of Allegiance was led by Community Development Director.

INVOCATION:

Invocation by Police Chaplin McClellan
ROLL CALL:

Present:

Absent:

Staff Present:

Committee Members Daugherty, Murphy, Reed, Nelson
Committee Members Borgwardt and Raymond
Police Chief Salvador, Community Development Director
Thompson, Senior Planner Rashe, Recording Secretary Rashad SUBSEQUENT NEED ITEMS: None
APPROVAL OF AGENDA AS POSTED OR AS AMENDED:

MOTION: Committee Member Murphy moved to approve the agenda as posted. The motion was seconded by Committee Member Daugherty and the vote was: Ayes:

Daugherty, Nelson, Murphy, Reed; Noes: None; Absent: Committee Member Borgwardt and Raymond. The motion passed.

ORGANIZATION OF THE GENERAL PLAN TECHNICAL ADVISORY COMMITTEE:

Nomination and Appointment of General Plan Technical Advisory Committee Chairperson
Community Development Director Thompson opened the nomination of a Chairperson.

Committee Member Daugherty moved to nominate Committee
Member Nelson as Chairperson.

Committee Member Reed seconded the motion.

The nomination period was closed.

MOTION: Committee Member Daugherty nominated Committee Member Nelson as Chairperson. The motion was seconded by Committee Member Reed and the roll call vote was: Ayes: Reed, Nelson, Murphy, Daugherty; Noes:· None; Absent:

Committee Members Borgwardt and Raymond. The motion passed.

Nomination and Appointment of General Plan Technical Advisory Committee Vice Chairperson.

Community Development Director Thompson opened the nomination of a Vice Chairperson.

Committee Member Reed moved to nominate Committee Member Daugherty as Vice Chairperson.

Committee Member Murphy seconded the motion.

The nomination period was closed.

MOTION: Committee Member Reed nominated Committee Member Daugherty as Vice Chairperson. The motion was seconded by Committee Member Murphy and the roll call vote was: Ayes: Reed, Nelson, Murphy, Daugherty; Noes: None;

Absent: Committee Members Borgwardt and Raymond. The motion passed.

APPROVAL OF MINUTES:

February 1
st
, 2023 - Regular Meeting
MOTION: Committee Member Reed moved to approve the minutes as posted. The motion was seconded by Committee Member Daugherty and the roll call vote was:

Ayes: Reed, Daugherty, Nelson, Murphy; Noes: None; Absent: Committee Members Borgwardt and Raymond. The motion passed.

OVERVIEW OF GENERAL PLAN UPDATE:

1. General Overview: Circulation
a. Goals/Policies
b. Century old Improvements
c. Multi-modal Transportation Needs
Community Development Director spoke about the citywide improvements and synchronization.

Police Chief Salvador spoke about traffic circulation in regard to the General Plan.

2. Planning the needs for a "New Atwater"

3. VMT (SB 743)
Senior Planner Rashe spoke about VMT (SB 743) and incorporating that into the General Plan.

4. RTP/SCS
Community Development Director Thompson spoke about the eligibility for federal transportation dollars due to RTP/SCS.

5. RFP GP Update
Community Development Director Thompson spoke about the RFP GP closes the third week of March.

COMMENTS FROM THE PUBLIC:

Chairperson Nelson opened Public Comment.

Notice to the public was read.

No one came forward to speak.

Chairperson Nelson closed the Public Comment.
\

COMMITTEE MEMBER MATTERS:

Committee Member Reed inquired about the selection on firms and scoring for the RFP.

Committee Member Daugherty inquired about a full-time City Engineer.

Committee Member Murphy mentioned neglecting the current city with a "new Atwater" occurring.

Chairperson Nelson inquired about the maintenance of the current sidewalks and the funding for it.

Community Development Director Thompson spoke about maintenance money but clarified that not all money can be used the same.

ADJOURNMENT:

Committee Member Nelson adjourned the meeting at 6:46 PM.

By: Kayla Rashad,
Recording Secretary

e.1TY· OF· ATWATE,R

GENERAL PLAN TECHNICAL ADVISORY COMMITTEE

ACTION MINUTES
April 5th, 2023
REGULAR SESSION: (Council Chambers)
The G e n e r a I P I a n Te c h n i c a I A d v i s o r y C o m m i t t e e of the City of Atwater met in Regular Session this date at 6:02 PM in the City Council Chambers located at the Atwater Civic Center, 750 Bellevue Road, Atwater, California; Chairperson Nelson presiding.

INVOCATION:

Invocation by Police Chaplin Miller
PLEDGE OF ALLEGIANCE:

The Pledge of Allegiance was led by Committee Member Daugherty.

ROLL CALL:

Present:

Absent:

Staff Present:

Committee Members Borgwardt, Daugherty, Murphy, Raymond, Reed, Nelson
None
Police Chief Salvador, Community Development Director
Thompson, Senior Planner Rashe, Recording Secretary Rashad SUBSEQUENT NEED ITEMS: None
APPROVAL OF AGENDA AS POSTED OR AS AMENDED:

MOTION: Committee Member Daugherty moved to approve the agenda as posted.

The motion was seconded by Committee Member Reed and the vote was: Ayes:

Borgwardt, Daugherty, Nelson, Murphy, Raymond, Reed; Noes: None; Absent:

None. The motion passed.

APPROVAL OF MINUTES:

March 1
st
, 2023 - Regular Meeting
MOTION: Committee Member Reed moved to approve the minutes as posted. The motion was seconded by Committee Member Murphy and the roll call vote was:

Ayes: Raymond, Reed, Daugherty, Borgwardt, Nelson, Murphy; Noes: None;

Absent: None. The motion passed.

OVERVIEW OF GENERAL PLAN UPDATE:

1. Presentation by Legal and Discussion
a. General Plan Update Process
b. Recent Regulatory Developments
City Attorney Splendorio and Branham co-presented on the General Plan Update Process
Community Development Director Thompson spoke about the RFP GP closes the third week of March.

COMMENTS FROM THE PUBLIC:

Chairperson Nelson opened Public Comment.

Notice to the public was read.

No one came forward to speak.

Chairperson Nelson closed the Public Comment.

COMMITTEE MEMBER MATTERS:

Chairperson Nelson expresses interest in Public Notices going forward for the General Plan Technical Advisory Committee.

ADJOURNMENT:

Committee Member Nelson adjourned the meeting at 7:20 PM.

By: Kayla Rashad,
Recording Secretary

CITY COUNCIL

AGENDA REPORT

MEETING
DATE:

May 8, 2023
TO: Mayor and City Council
FROM: Greg Thompson, Community Development Director

PREPARED
BY:

Christina Thurman, Executive Assistant
SUBJECT: Approving and authorizing Purchase and Sale Agreements for Fruitland Avenue Reconstruction - Phase 3 Right of Way
Acquisition and approving expenditure of any additional and related closing expenses (Community Development Director Thompson)

RECOMMENDED COUNCIL ACTION
Adoption of Resolution No. 3391-23 approving and authorizing the Purchase and Sale Agreements for various properties in the amount of $18,123.00, $148,078.00, and $53,610.00, respectively, for Fruitland Avenue Reconstruction - Phase 3 Right of Way Acquisition, CIP Project No. 16-2-3, in forms approved by the City Attorney and approves the expenditure of any additional and related closing expenses; and authorizes and directs the City Manager, or her designee, to execute all Agreements and utility related documents to CIP Project No. 16-2-3 on behalf of the City.

I. BACKGROUND/ANALYSIS:

In 2016, the Fruitland Avenue Reconstruction Project was approved. The project called for the roadway on Fruitland Avenue from Shaffer Road to Orchard Park to be replaced and sidewalks, curbs, and gutters to be installed where none existed. Constructing the project from Winton Way Avenue to Orchard Park to Shafffer Road in a phased approach was determined to be the best approach to leverage different funding sources.

A phased approach was approved by the City Council at their regularly scheduled meeting on March 26, 2018. Phase 1 was completed on April 7, 2020. Approximately 535 linear feet of pavement reconstruction was performed, beginning 780 feet east of the intersection of Winton Way and Fruitland Avenue and terminating approximately 690 feet west of Fruitland Avenue and Fifth Street. Phase 2 was approved on December 14, 2020. This work consisted of construction of a storm water detention basin, pump station, and associated piping. This work is close to completion and is just waiting for the repavement of the roadway in front of the basin.

CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

Phase 3 of the Fruitland Reconstruction Project includes the repavement and installation of sidewalk, curb, and gutters along Fruitland Avenue from Capitola Avenue to approximately 690 feet west of Fruitland Avenue and Fifth Street. During the design phase of this section, it was identified that the City would need to purchase portions of properties along this section to install sidewalks, curbs and gutters.

On July 6, 2021, a request for Proposals (RFP) was issued for professional engineering services for Right of Way Acquisition of approximately twelve (12) parcels for Fruitland Avenue Reconstruction Phase 3. Proposals were solicited and were received on August 3, 2021. At their regularly scheduled meeting of August 23, 2021, City Council approved the award of a Professional Services Agreement, in the form approved by the City Attorney, for the Right of Way Acquisition Services of Fruitland Avenue Reconstruction - Phase 3, CIP Project No. 16-2-3 to Associated Right of Way Services, Inc. (AR/WS) of Pleasant Hill, California.

On April 25, 2022, City Council approved Resolution No. 3311-22 which approved and authorized the Purchase and Sale Agreements for eight (8) of the twelve (12) identified properties for Fruitland Phase 3 -Right of Way Acquisition Project. Three (3) of the twelve (12) parcels were still in discussions and were to be taken back to the Council at a later date to seek approval, and the last of the identified parcels did not require any acquisition costs.

ANALYSIS:

Associated Right of Way Services, Inc has been working with the property owners and the Title Co. and has come back to the City with the remaining three (3) of the twelve (12) identified properties for Fruitland Phase 3, CIP Project No. 16-2-3, Right of Way Acquisition.

Associated Right of Way Services, Inc. (AR/WS) has provided Purchase and Sale Agreements for the remaining three (3) of the twelve (12) identified properties:
150-190-003 (Perez)
Amount of right away acquisition $18,123.00
150-150-007 (Maldonado)
Amount of right away acquisition $148,078.00
150-190-001 (Lepper)
Amount of right away acquisition $53,610.00
Staff is recommending the City Council authorize the City Manager to execute the Purchase and Sale agreements and all documents related to the Fruitland Avenue Reconstruction - Phase 3 Right of Way Acquisition, CIP Project No. 16-2-3.

II. FISCAL IMPACTS:

Agenda Report - Page 3

Sufficient funding for this project is available in the Fiscal Year 2022-23 Budget, Fruitland Avenue Road Improvements, Account No. 1018.1080.M007. This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney's Office.

IV. EXISTING POLICY:

This item is consistent with goal numbers one (1) and two (2) of the City's 2020-2025 Strategic Plan: to ensure the City's continued financial stability and to improve public safety, respectively.

V. ALTERNATIVES:

VI. INTERDEPARTMENTAL COORDINATION:

This item has been routed and reviewed by all departments.

VII. PUBLIC PARTICIPATION:

The public will have an opportunity to provide comments on this item prior to City Council action.

VIII. ENVIRONMENTAL REVIEW:

This project is Categorically Exempt (CE) pursuant to the California Environmental Quality Control Act (CEQA) guidelines, Section 15301, Class1(c): Operation, repair, maintenance, or minor alteration to existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities
IX. STEPS FOLLOWING APPROVAL:

Following City Council approval, the City Manager will execute the Agreements and all utility documents related to CIP Project No. 16-2-3 on behalf of the City.

Submitted by:

Greg Thompson, Community Development Director
Approved by:

Lori Waterman, City Manager
Attachments:

Agenda Report - Page 4

1. Resolution No. 3391-23 Approves and Authorizes Purchase and Sale Agreements & Authorizes City Manager execute any and all Agreements

2. Perez- Purchase and Sale Agreement

3. Lepper- Purchase and Sale Agreement

4. Maldonado- Purchase and Sale Agreement

CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION NO. 3391-23

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ATWATER APPROVING AND

AUTHORIZING THE PURCHASE AND SALE

AGREEMENTS WITH VARIOUS PROPERTY

OWNERS FOR FRUITLAND AVENUE
RECONSTRUCTION – PHASE 3 RIGHT OF WAY
ACQUISITION; APPROVING THE EXPENDITURE

OF ANY ADDITIONAL AND RELATED CLOSING
EXPENSES; AND AUTHORIZING THE CITY

MANAGER, OR HER DESIGNEE, TO EXECUTE

ALL AGREEMENTS AND UTILITY RELATED

DOCUMENTS ON BEHALF OF THE CITY
WHEREAS, on March 26, 2018 the City Council at their regularly scheduled meeting approved a phased approach for the Fruitland Avenue Reconstruction Project; and WHEREAS, Phase 1 was completed on April 7, 2020 and consisted of approximately 535 linear feet of pavement reconstruction, beginning 780 feet east of the intersection of Winton Way and Fruitland Avenue and terminating approximately 690 feet west of Fruitland Avenue and Fifth Street; and
WHEREAS, Phase 2 was approved on December 14, 2020. This work consisted of construction storm water detention, pump station, and associate piping. This phase is close to completion and is waiting on the repavement of the roadway in from of the basin; and
WHEREAS, Phase 3 of the Fruitland Avenue Reconstruction Project includes the repavement and installation of sidewalks, curbs, and gutters along Fruitland Avenue from Capitola Avenue to approximately 690 feet west of Fruitland Avenue and Fifth Street.

During the design phase of this section, it was identified that the City would need to purchase portions of properties along this section to install sidewalks, curbs, and gutters; and
WHEREAS, on July 6, 2021, a Request for Proposals (RFP) was issued for professional engineering services for Right of Way Acquisition of approximately twelve (12) parcels for Fruitland Avenue Reconstruction Phase 3. Proposals were solicited and were received on August 3, 2021; and

Resolution No. 3391-23 Page 2
WHEREAS, at the regularly scheduled meeting of August 23, 2021, the City Council approved the award of a Professional Services Agreement for the Right of Way Acquisition Services of Fruitland Avenue Reconstruction-Phase 3, CIP Project No. 16-2- 3, to Associated Right of Way Services, Inc (AR/WS) of Pleasant Hill, California; and WHEREAS, on April 25, 2022, City Council approved Resolution No. 3311-22 approving and authorizing the Purchase and Sale Agreements for eight (8) of the twelve (12) identified properties for the Fruitland Phase 3- Right of Wat Acquisition Project. Three (3) of the twelve (12) parcels were still in discussion and were to be taken back to City Council at a later date, and the last remaining parcel identified did not require any acquisition costs.

WHEREAS, Associated Right of Way Services, Inc. (AR/WS) has been working with the property owners and the Title Co. and has come back to the City with the remaining three (3) of the twelve (12) identified properties for the Fruitland Phase- 3, CIP Project No. 16- 2-3, Right of Way Acquisition; and
WHEREAS, the City Council desires to execute the Purchase and Sale Agreements for the identified properties.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Atwater does hereby resolve, declare, and determine as follows:

1. The above recitals are true and correct and are incorporated herein by reference.

2. The City Council hereby approves and authorizes the Purchase and Sale Agreements for Fruitland Reconstruction Project - Phase 3 Right of Way Acquisition, in a form approved by the City Attorney, and authorizes the expenditure of any necessary and related closing costs.

3. The City Manager, or her designee, is authorized and directed to execute such documents and perform such actions as are necessary to carry out the purpose and intent of this resolution.

The foregoing resolution is hereby adopted this 8th day of May 2023.

AYES:

NOES:

ABSENT:

APPROVED:

________________________________

MIKE NELSON, MAYOR
ATTEST:

Resolution No. 3391-23 Page 3
_______________________________
KORY J. BILLINGS, CITY CLERK

CITY COUNCIL

AGENDA REPORT

MEETING
DATE:

May 8, 2023
TO: Mayor and City Council
FROM: Michael Salvador, Police Chief

PREPARED
BY:

Michael Salvador, Police Chief
SUBJECT: Authorizing and approving a Purchase Agreement (Purchase Order) with Sun Ridge Systems for the purchase of software modules for the Police Department's Records Management
System (Police Chief Salvador)

RECOMMENDED COUNCIL ACTION
Authorizes and approves a Purchase Agreement (Purchase Order) with Sun Ridge Systems of El Dorado Hills, California for the purchase of District Attorney and Citizen reporting supplemental modules for the Police Department's Records Management System in an amount not to exceed $14,270; and authorizes and directs the City Manager, or her designee, to execute the Purchase Agreement (Purchase Order) on behalf of the City.

I. BACKGROUND/ANALYSIS:

The Police Department is always looking for innovative ways of servicing the public. In 2019, the Department gained approval to purchase the Sun Ridge Rims records management system. In the 3 years the product has been in service, the department has seen gains in officer efficiency and accuracy. The Product has allowed the department to reduce the amount of paperwork being filed and become the primary law enforcement data repository.

To further enhance these products' capabilities, the department is requesting that it be allowed to purchase two customer service modules to attach to the existing system.

These modules will allow for reports to be electronically transmitted to the DA's Office and allow for the establishment of a citizen reporting and data mining portal. This will allow our staff and residents more options on how to access our services and a more efficient transmission of criminal reports to the DA's Office.

II. FISCAL IMPACTS:

There is sufficient unencumbered resources in budget account (0001-2020-2021 Police Administration Special Departmental Expense) for the requested purchase. The module is an add-on to the current proprietary Sun Ridge Systems software and therefore

CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

meets the definition of sole source as it is the only module that will work with our RMS System.

The item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney's office.

IV. EXISTING POLICY:

This item is consistent with goal numbers one (1), two (2), three (3) of the City's Strategic Plan: to ensure the City's continued financial stability, to improve public safety, and improve internal and external communication respectively.

V. ALTERNATIVES:

None
VI. INTERDEPARTMENTAL COORDINATION:

The purchase order will be coordinated through the Finance Department and the City Manager's Office.

VII. PUBLIC PARTICIPATION:

The public will have the opportunity to provide comments prior to City Council action.

VIII. ENVIRONMENTAL REVIEW:

This item is not a “project” under the California Environmental Quality Act (CEQA) as this activity does not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to Public Resources Code section 21065.

IX. STEPS FOLLOWING APPROVAL:

Execute purchase order for the purchase of the requested software. Implementation will be conducted by the vendor.

Submitted by:

Michael Salvador, Police Chief
Approved by:

Lori Waterman, City Manager
Attachments:

Agenda Report - Page 3

1. Sunridge quote

CITY COUNCIL

AGENDA REPORT

MEETING
DATE:

May 8, 2023
TO: Mayor and City Council
FROM: Frank Splendorio, City Attorney

PREPARED
BY:

Frank Splendorio, City Attorney
SUBJECT: Approving Restated Joint Powers Agreement of Merced County Association of Governments (City Attorney Splendorio)

RECOMMENDED COUNCIL ACTION
Adoption of Resolution No. 3396-23 approving a Restated Joint Powers Agreement of the Merced County Association of Governments (MCAG) and authorizing the City Manager to execute on behalf of the City.

I. BACKGROUND/ANALYSIS:

Merced County Association of Governments (MCAG) is an association of city and county governments, with members who meet to solve regional problems such as transportation, solid waste, and air quality. This Association of Governments is where the cities and the county come together to solve problems that can only be accomplished by working together.

MCAG was formed through a Joint Powers Authority (JPA) signed by member jurisdictions in 1967. As a regional collaborative agency, MCAG serves in a number of transportation planning roles in Merced County based on local, state and federal designations. These designations fund for MCAG activities, primarily in transportation planning throughout Merced County.

The current JPA Agreement expires on July 18, 2023. The Governing Board of MCAG, composed of necessary representatives of the jurisdictions, began reviewing the current Agreement in November 2021 for amendments and updates.

In February 2022, an amended (draft) JPA was released to each of the member agencies for review and comment. The deadline to submit comments was July 6, 2022.

At the July 15, 2022, MCAG meeting, the Board Cities requested additional time to review and submit comments. In light of this request, the MCAG Board unanimously approved a motion granting 60 additional days for comment, at the expiration of time period, if no comments were received, the draft circulated in February 2022 would be submitted to each jurisdiction for ratification.

CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

During the October 20, 2022, MCAG meeting, additional time was requested for each jurisdiction's months to review and negotiate discrete portions of the JPA. Counsels met over the course of several months between November 2022 to January 2023 negotiating changes to the draft JPA with a comment period deadline of January 6, 2023. The JPA agreement was then submitted to the MCAG Board on January 19, 2023 for final review. At the January 19, 2023 meeting, the MCAG Board voted unanimously to submit such draft to their respective jurisdictions for ratification.

Subsequent to the January 19, 2023 MCAG Board meeting, additional revisions and corrections were requested. The substantive revisions were to require unanimous consent of the jurisdictions to amend the term of the agreement, board composition and withdrawal. These changes have been incorporated into the agreement, and highlighted in yellow. Since then, the various member agencies have taken this agreement to their respective legislative bodies for approval. To date, Dos Palos, the County of Merced, the City of Merced, and others have already received approval.

II. FISCAL IMPACTS:

Dues based on allocation percentage will be incorporated in the Fiscal Year 2023-24 budget.

This item has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney’s office.

IV. EXISTING POLICY:

This item is consistent with goal numbers one (1) and three (3) of the City’s 2020-2025 Strategic Plan to ensure the city's continued financial stability, and promote transparency through communication.

V. ALTERNATIVES:

Not required for all staff reports but should be included in most reports where the Council should be considering options, or discussion of options already investigated.

If there are Policy options for consideration, the discussion should be specific and detailed.

VI. INTERDEPARTMENTAL COORDINATION:

This item has been reviewed by all departments.

VII. PUBLIC PARTICIPATION:

The public will have an opportunity to provide comments on this item prior to City Council action. This item has also been discussed at MCAG Board meetings.

Agenda Report - Page 3

VIII. ENVIRONMENTAL REVIEW:

This item is not considered a "project" pursuant to Section 21065 of the Public Resources Code in that the action would not have a direct or indirect effect to the physical environment and therefore is not subject to analysis.

IX. STEPS FOLLOWING APPROVAL:

Upon City Council's approval, the City Clerk's Office will route the Resolution and Agreement for signatures.

Submitted by:
/s/ Frank Splendorio
Frank Splendorio, City Attorney
Approved by:

Lori Waterman, City Manager
Attachments:

1. Restated Joint Powers Agreement of MCAG (3.28.23)-c1

2. Resolution No. 3396-23 Approves MCAG-c1

1 RESTATED JOINT POWERS AGREEMENT OF THE
MERCED COUNTY ASSOCIATION OF GOVERNMENTS [MCAG]
Effective Date July 19, 2023
This Restated Joint Powers Agreement is entered into by and among those undersigned of the Cities of Atwater, Dos Palos, Gustine, Livingston, Los Banos, and Merced, all municipal corporations and the County of Merced, a political subdivision of the State of California.

RECITALS

1. Common Power. Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of the California Government Code authorizes two or more public agencies, by a joint powers agreement entered into respectively by them and authorized by their legislative or governing bodies, to jointly exercise any power common to them.

2. Common Authority. The City of Merced, by virtue of its charter, and the Cities of Los Banos, Atwater, Livingston, Dos Palos and Gustine, and the County of Merced, by virtue of California Government Code Section 6500 – 6539.9, inclusive, possess in common the authority:
a) To study, discuss, and develop solutions to area-wide problems of direct concern to the performance of their constitutional and statutory functions and to establish an area planning organization and expend public funds for these purposes; and b) To do all acts necessary to participate in federal programs and receive federal funds for transportation, housing, and other community improvement activities, including contracting and cooperating with other agencies.

3. Orderly Development. The people residing within the incorporated and unincorporated areas of Merced County have an interest in the orderly development of their communities.

4. Independent Agency. The continued growth and extensive development within the incorporated and unincorporated areas of Merced County have evidenced the

2 need to create a wholly independent regional agency capable of dealing with area-wide issues and problems.

5. Merced County Association of Governments. On November 28, 1967, the foregoing needs led to the creation and establishment of Merced County Association of Governments, (hereinafter referred to as “MCAG”).

6. Transportation Authority. MCAG was designated by the County of Merced as the Local Transportation Authority for Merced County in 1990 and has operated as such from that date to the present.

7. Effects. The establishment of MCAG has:
a) Provided a forum to study and develop solutions to area-wide problems of mutual concern to the Agencies.
b) Provided efficiency and economy in governmental operations through the cooperation of the Agencies and the pooling of common resources. c) Provided for the establishment of a Joint Powers Authority responsible for identifying, planning, and developing solutions to regional problems requiring multijurisdictional cooperation. d) Provided for the establishment of a Joint Powers Authority capable of developing regional plans and policies and performing area-wide planning duties. e) Facilitated cooperation among and agreement between the Agencies for specific purposes, interrelated developmental actions, and for the adoption of common policies with respect to issues and problems which are common to the Agencies. f) Allowed for imposition of a Regional Transportation Impact Fee with the Authority as the planning, administrative and implementation entity.

8. Amendment. The undersigned Agencies and Members desire to amend and restate the “Cooperative Agreement”/Joint Powers Agreement dated November 28, 1967, as amended (the “Original Agreement”), in order to establish the duties and powers of the MERCED COUNTY ASSOCIATION OF GOVERNMENTS. This Restated Joint Powers

3 Agreement and the terms and conditions set forth herein supersede all prior amendments and restatements of the Original Agreement.

NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

ARTICLE 1. DEFINITIONS

1.1 Unless the context otherwise requires, capitalized terms used in this Agreement will have the meanings specified in Exhibit A, which is attached and incorporated by this reference.

ARTICLE 2. PURPOSE

2.1 This Agreement is made pursuant to the Act to provide for the joint exercise of certain powers common to the Members and the additional powers granted under the Act. To the extent currently applicable, those powers and/or functions are set forth in Article 6 below.

ARTICLE 3. CONTINUATION OF AUTHORITY

3.1 Continuation. Upon the effective date of this Agreement, the Parties hereto hereby continue the MERCED COUNTY ASSOCIATION OF GOVERNMENTS, as a public entity separate and distinct from its member entities, as the agent to exercise the common powers provided for in this Agreement and to administer or otherwise execute the terms of this Agreement.

3.2 Assets, Rights and Liabilities. The assets, rights, debts, liabilities, and obligations of MCAG shall be those of MCAG and shall not constitute assets, rights, debts, liabilities, or obligations of any of the Members. However, nothing in this Agreement shall prevent any Member from separately contracting for, or assuming responsibility for, specific debts, liabilities, or obligations of MCAG, provided that both the Board and that Member approve such contract or assumption. The provisions of Government Code

4 section 6504, specifically including the right of Members to advance funds and make loans, are made a part of this Agreement.

ARTICLE 4. TERM

4.1 Effective Date. This Agreement shall become effective on July 19, 2023.

4.2 Term. This Agreement shall continue for a period of thirty years from the effective date unless terminated in accordance with Article 10 of this Agreement. The term may only be modified by the unanimous consent of all Members.

ARTICLE 5. BOUNDARIES

5.1 Boundary. MCAG’s jurisdictional boundary shall not exceed the jurisdictional boundary of the County of Merced, as the County boundary may be expanded or changed during the Term of this Agreement. This provision shall not prevent MCAG from acquiring services or property outside of its boundaries for the benefit of MCAG Agencies.

ARTICLE 6. FUNCTIONS/POWERS

6.1 Authority Functions. MCAG will function or continue to function as:
a. The Local Transportation Authority as designated by the County of Merced in 1990.
b. The Metropolitan Planning Organization as designated by the United States Department of Transportation pursuant to Title 23 of United States Code Section 134 and Title 49 of the United States Code §5303(b)(2). c. The Regional Transportation Planning Agency as designated by the Secretary of Business and Transportation of the State of California pursuant to California Government Code Sections 65080, et seq.
d. The regional transportation planning representative as designated by the parties hereto for the purpose of acting upon any appropriate proposals which may be presented to the Board for consideration or which the Board may elect to take up and for transmission of proposed recommendations to federal, state and local agencies, including, but not limited to, the member entities of MCAG.

5 e. The designated E.O. 12372 Intergovernmental Review of Federal Programs Clearing House and as such review all applications for federal funds by any participating entity wherein such review is a requirement of the particular federal aid program involved.
f. The State Census Affiliate Data Center for Merced County. g. The Service Authority for Freeway Emergencies (SAFE) as created by the Members in 1996.
h. The agency to administer, coordinate, plan and implement/effectuate a Regional Transportation Impact Fee Program if adopted by the Agencies. i. MCAG shall perform any functions directed by the Board in furtherance of the foregoing or other programs as determined by the Board.

6.2 Powers. MCAG is authorized, but is in no way required, to act in its own name on any or all of the following matters, as each Member could act separately, and as it deems in the best interest of its Members, to the extent permitted by any and all applicable laws, codes, ordinances, resolutions and regulations, subject only to such restrictions upon the manner and exercise of such power as are imposed upon the County of Merced in the exercise of similar powers:
a. Make and enter into contracts.
b. Acquire, improve, hold, lease, and dispose of real and personal property of all types.
c. Accept gifts, donations, advances and contributions and act as regional lead jurisdiction/applicant and grant administrator for grants in the name of Members/regional participants.
d. Hire agents and employees
e. Sue and be sued in its own name.
f. Incur and discharge debts, liabilities and obligations. g. Issue bonds or notes and incur other forms of indebtedness, and

6 make associated covenants, for designated purposes, subject to the provisions and limitations of the California Constitution and the Government Code. h. Adopt, as authorized by California law, ordinances and resolutions necessary to carry out the purposes of this Agreement.
i. Any additional power granted to Joint Powers Authorities under the Act.
j. All powers necessary to the exercise of the enumerated powers.

ARTICLE 7. ORGANIZATION

7.1 Governing Board.

MCAG shall be governed by a Governing Board (hereinafter “Board”), which shall exercise or oversee the exercise of all powers and authority on its behalf. The Board shall meet in accordance with the MCAG bylaws. Under this Agreement, the Board is expressly charged with carrying out the foregoing provisions through its actions, through contracts, or through staff hired by MCAG.

7.2 Directors.
(a) The Board shall consist of each of the five Merced County Supervisors and one elected legislative official from each of the other Members. No Person shall be eligible for appointment to the Board unless he or she is serving in an elective position.

Each of the city Members may appoint one elective Person as an alternate to serve in the absence of an appointed director. Directors and alternate directors who have been duly appointed and are serving at the time of the adoption of this Agreement may continue to serve in that capacity without any further action of the Member. (b) Each Director, so long as a public official, shall hold office from the first meeting of the Board after appointment by the Member until his or her successor is selected by such Member.
(c) This Section 7.2 may only be modified by the unanimous consent of the Members.

7 7.3 Principal Place of Business. The principal place of business of MCAG shall be located within the Boundary of MCAG.

7.4 Officers.
(a) The Board shall select a Chair and a Vice Chair from among the Directors who shall hold office for a period of one year commencing July 1st. The Chair and Vice Chair shall alternate between a Member of the Merced County Board of Supervisors and a city Member representative. The positions shall rotate and there shall be no consecutive terms. These specifications are met with the adherence to the Chair Rotation Schedule adopted by the MCAG Board of Directors on June 15, 2017. The Rotation Schedule may be amended at the discretion of the Board from time to time but shall generally not result in consecutive terms or break the alternation between the County Board of Supervisors Members and the city Member.
(b) Executive Director. The Board shall utilize an Executive Director who shall be the chief executive officer of MCAG.
(c) Deputy Executive Director. The Executive Director may appoint a Deputy Executive Director who shall be a full-time employee of MCAG and who shall serve as Executive Director in the absence of the Executive Director. (d) Finance Director. The Executive Director shall appoint a Finance Director who shall be a full-time employee of MCAG and who shall function under the guidance of the Executive Director.
(e) Secretary. The Board shall utilize the services of a Secretary who shall be an employee of MCAG.
(f) General Counsel. MCAG shall contract with an attorney licensed to practice in the State of California who shall serve as General Counsel to MCAG.

7.5 Designation of Law. As required by section 6509 of the Act, and in the absence of conflicting procedural rules, ordinances and resolutions adopted by the Board,

8 the procedural rules, ordinances and resolutions of the County of Merced are the governing law for MCAG.

ARTICLE 8. FINANCIAL MATTERS

8.1 Financial Matters.
(a) Budget. MCAG shall prepare and submit to the Board a budget and work plan for adoption prior to July 1 of each year for the ensuing Fiscal Year. (b) Treasurer. The Finance Director of MCAG shall be the Treasurer pursuant to Government Code section 6505.6.
(c) Auditor. The Finance Director of MCAG shall be the Auditor pursuant to Government Code section 6505.6.
(d) Duties of Treasurer and Auditor. The Treasurer and/or Auditor, as appropriate, shall do all of the following:
(1) Receive and receipt for all money of MCAG and place it in the treasury of the Treasurer so designated to the credit of MCAG. (2) Be responsible, upon his or her official bond, for the safekeeping and disbursement of all MCAG money so held by him or her. (3) Pay, when due, all sums payable with respect to outstanding indebtedness of MCAG.
(4) Pay any other sums due from MCAG only upon warrants of the public officer performing the functions of auditor or controller who has been designated by this Agreement.
(5) Make or contract to make an annual audit of the accounts and records of MCAG. The minimum standards of the audit shall be those prescribed for special districts under Section 26909 of the Government Code and shall conform to generally accepted auditing practices. A report of the audit shall be filed as public record with each of the Agencies within 12 months of the end of the Fiscal Year under examination. Any costs in making an audit in accordance with this Agreement shall be

9 borne by MCAG and shall be a charge against any unencumbered funds of MCAG available for the purpose.
(6) Draw warrants to pay demands against MCAG when the
demands have been approved by any Person authorized to so approve in thisAgreement. (7) File an official bond or proof of insurance in an agreed amount pursuant to section 6505.1 of the Act.
(8) Perform any and all other functions necessary to effectuate this Agreement.
(e) Investment Policy. The investment policy of MCAG shall be the investment policy adopted by the Board.
(f) Revenue Bonds. MCAG may issue revenue bonds, but the revenue bonds shall not constitute a debt, liability, or obligation of an individual Member. (g) Insurance/Indemnification.

MCAG shall maintain general liability insurance relating to its enumerated functions and shall indemnify, protect, defend and hold harmless all of the Members and their elected and appointed officers, employees, and agents from and against any and all liability, including but not limited to demands, claims, actions, fees, costs, and expenses (including attorney and expert witness fees), arising from or connected with the MCAG's acts and/or omissions arising from and/or relating to this Agreement or any act and/or omission performed by a Member on behalf of MCAG or at the request of MCAG. This indemnity shall include Environmental Laws as herein defined.

ARTICLE 9. WITHDRAWAL FROM MCAG

9.1 Withdrawal Conditions. A Member may not withdraw from MCAG unless and until that Member:
(a) Liquidates in full its proportion of any and all existing debts, obligations and liabilities incurred, earned, or expected to be earned by the date of withdrawal,

10 including, but not limited to, certificates of participation, notes, revenue bonds and other indebtedness, if any, as determined by the Board. The liabilities of a withdrawing Member shall specifically include those resulting from acts or omissions when the withdrawing Member was a participating Member of MCAG.
(b) Has provided written notice of intent to withdraw, via a resolution of the governing body of the Member, at least one (1) year prior to the end of the Fiscal Year in which it intends to withdraw. Withdrawal shall be effective at the end of the fiscal year. (c) This Section 9.1 may only be modified by the unanimous consent of the Members.

9.2 Costs of Withdrawal. A withdrawing Member shall be responsible for all costs associated with its withdrawal from MCAG. Such costs may include, but may not be limited to, MCAG staff time associated with ensuring the proper and complete withdrawal of the Member and costs of continuing contracts attributable to that Member. In determining the costs associated with the withdrawal of a Member, the withdrawing Member shall have the option of allowing MCAG to determine such costs or of hiring, at its own cost, an independent auditor approved by the Board to determine the costs associated with its withdrawal.

ARTICLE 10. TERMINATION

10.1 Termination Requirements. This Agreement may only be terminated by consent of all Members, and upon full and complete liquidation of all liabilities, including, but not limited to, certificates of participation, notes, revenue bonds and other indebtedness, if any, and the winding up of all MCAG business. Upon the date of termination (“Termination Date”), payment of any and all obligations and division of any and all assets of MCAG shall be conducted subject to the then applicable requirements of the law (currently Section 6511, et seq., of the Act) as follows:
(a) In the event of termination of MCAG where there is a successor public entity that will conduct all of the activities and assume all of its obligations, any and all MCAG assets and liabilities remaining upon termination shall be transferred to the

11 successor public agency.
(b) If there is no successor public agency that would conduct MCAG’s activities, all assets and liabilities, including surplus money, shall be apportioned to each Member in proportion to population.
(c) If there is a successor public agency that would conduct some of MCAG’s activities, then the Board shall allocate MCAG assets and liabilities, including surplus money, between the successor public agency and the Members. In such case the Member’s portion of the allocation shall be based on subparagraph (b) above. (d) By unanimous agreement of the Members, assets and liabilities may be disposed of, divided or distributed on a basis different from that established in this Article 10.

ARTICLE 11. BYLAWS

11.1 Bylaws. Bylaws may be adopted by the Board pursuant to which meetings of the Board shall be called. The Bylaws shall contain appropriate provisions for the transaction of business and describe the duties and powers of the Chair and Vice Chair and such other officers as may be appointed. To the extent the Bylaws conflict with this Agreement, the terms of this Agreement shall control. The Bylaws may be amended from time to time by majority vote of the Board after notice in accordance with the Bylaws.

ARTICLE 12. AMENDMENTS

12.1 With the exception of Article 10, Article 9, Section 7.2 and Section 4.2, this Agreement may be amended at any time by agreement of five Members, one of which must be the County of Merced. The County of Merced’s agreement shall be evidenced by a resolution of the County Board of Supervisors. Agreement of a city Member shall be evidenced by a resolution of their respective City Council. However, no amendment may reduce the representation rights of a Member, or add to the duties or obligations of a Member without the agreement of such Member.

ARTICLE 13. MISCELLANEOUS

13.1 Filing with the Secretary of State. All notices required by Government Code

12 Sections 6503.5 and 53051 shall be filed by MCAG with the California Secretary of State.

13.2 Immunity. All of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, worker’s compensation, andother benefits which would apply to the activity of officers, agents, or employees of any such Member, when performing their respective functions within the territorial limits of the respective Members, shall apply to them to the same degree and extent while engaged in the performance of any of their functions and duties under this agreement outside the territorial limits of their Agencies.

13.2 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of each Member. Notwithstanding the foregoing, no Member may assign any right or obligation hereunder without the written consent of all other Members.

13.3 Severability. If any provision of this Agreement or its application to any Person or circumstances is held invalid or illegal by a final judgment of a court of law in the State of California, the remainder of this Agreement and the application of the provision to other Persons or circumstances shall not be affected.

13.4 Headings. All section headings contained in this Agreement are for convenience and reference only. They are not intended to define or limit the scope of any provision of this Agreement.

13.5 Conflict of Interest Code. MCAG has adopted a conflict of interest code.

13.6 Disputes. Prior to filing a lawsuit, the parties shall attempt to resolve, in good faith, any and all disputes, claims or controversies arising out of or relating to this Agreement, including decisions and official actions of the Board, by participating in mediation, conducted by a mediator selected by the parties to the dispute. This provision may be invoked by any Member with written notice (“Notice of Mediation”) to MCAG, or to the other Agency to the dispute, accompanied by a resolution of the invoking Agency’s council or board invoking this provision. MCAG may also invoke this provision through a majority vote of the MCAG Board.

13 Once Mediation Notice is received by an Agency, the parties to the dispute, or their respective representative, shall select a mediator with appropriate expertise and experience with dispute resolution. If the parties are not able to stipulate to a mediator, then, within 10 business days of receiving the Mediation Notice, the parties shall simultaneously exchange a list of three mediators. Each party shall propose their list of mediators independently and without sharing their list with any other party. Within five business days of the exchange, the parties shall, independently and without comparing, rank all of the mediators exchanged in numerical order and exchange such rankings. The highest-ranking person shall be designated as the mediator. In the event of a tie, the earliest available person shall be designated as the mediator. If such mediator is not available to serve, or is otherwise conflicted, the parties shall proceed to contact the mediator who was next highest in ranking until they are able to select a mediator. The parties shall have 30 days from receipt of the Notice of Mediation to select a mediator.

The selected mediator, in consultation with the parties, shall establish the time and place of mediation, rules regarding the prompt exchange of information, and the exchange and preparation of written summaries (if necessary). The parties shall attempt in good faith to complete mediation of the dispute within 120 days of selection. The parties may, by unanimous agreement, establish a different timeframe for mediation. Such alternative timeframe must be in writing and agreed to within 90 days from receipt of the Mediation Notice. Such agreement may be executed by the parties’ representatives. The parties agree to attend a minimum of two full-day mediation sessions if the matter cannot be resolved sooner. During the course of the mediation, no party can assert the failure to fully comply with the timelines established herein as a reason not to proceed or to delay the mediation.

The service of the Notice of Mediation shall stay the running of any applicable statute of limitations regarding the dispute until 15 days after conclusion of mediation.

Conclusion of the mediation shall occur at the earliest of 1) execution of a settlement

14 agreement by all parties to the mediation, 2) declaration of the mediator that mediation is terminated, or 3) at the expiration of 120 days from the selection of the mediator (or alternative agreed upon timeframe for mediation) and the parties have attended two fullday mediation sessions. Each side shall bear an equal share of the mediation costs unless the parties agree otherwise.

The mediation process shall be confidential based on terms acceptable to the mediator and/or mediation service provider.

13.7 Execution in Counterparts. This Agreement may be executed on behalf of the respective Members in one or more counterparts, all of which shall collectively constitute one agreement.

13.8 Authority to Bind. Each person signing below represents and warrants that he or she is authorized, by resolution or similar action, of their respective city council or board of supervisors to bind the Agency on whose behalf he or she executes this Agreement.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates shown in the respective signature blocks.

MERCED COUNTY BOARD OF SUPERVISORS
By:

Chairman
ATTEST:

By:

Clerk of County Board of Supervisors
Approved as to Legal Form:

By:

County Counsel
Dated:

15 CITY OF ATWATER
By: Dated:

Mayor
ATTEST:

By:

City Clerk
Approved as to Legal Form:

By:

City Attorney

CITY OF DOS PALOS
By: Dated:

Mayor
ATTEST:

By:

City Clerk
Approved as to Legal Form:

By:

City Attorney

16 CITY OF GUSTINE
By: Dated:

Mayor
ATTEST:

By:

City Clerk
Approved as to Legal Form:

By:

City Attorney

CITY OF LIVINGSTON
By: Dated:

Mayor
ATTEST:

By:

City Clerk
Approved as to Legal Form:

By:

City Attorney

17 CITY OF LOS BANOS
By: Dated:

Mayor
ATTEST:

By:

City Clerk
Approved as to Legal Form:

By:

City Attorney

CITY OF MERCED
By: Dated:

Mayor
ATTEST:

By:

City Clerk
Approved as to Legal Form:

By:

City Attorney

18 EXHIBIT A

DEFINITIONS
Unless the context otherwise requires, capitalized terms used in this Agreement will have the meanings specified below.

Act
“Act” means the California Joint Exercise of Powers Law (California Government Code Section 6500 et seq.)
Agency/Agencies
“Agency/Agencies” means the County of Merced, City of Atwater, City of Dos Palos, City of Gustine, City of Livingston, City of Los Banos, and City of Merced.

Agreement
“Agreement” means this Restated Joint Exercise of Powers Agreement, as it may be amended from time to time.

Auditor
“Auditor” means the Finance Director of MCAG.

Board
Chair
“Board” means the governing Board of Directors of MCAG, consisting of representatives from each of the Members as more fully described in Article 7 of this Agreement.
“Chair” means the Chair of the MCAG Board, as described in Article 7 of this Agreement and the Bylaws.

Director
“Director” means the Member representatives appointed to serve on the governing Board of Directors.

Environmental Laws
“Environmental Laws” means all federal and state statutes and all county, local, and Agency ordinances concerning public health, safety, and the environment including, by way of example and not limitations, the Comprehensive Environmental

19 Response, Compensation, and Liability Act of 1980, 42 USC §9601, et seq.; the Resource Conservation and Recovery Act, 42 USC §6902, et seq.; the Federal Clean Water Act, 33 USC §1251, et seq.; the Toxic Substances Control Act, 15 USC §1601, et seq.; the Occupational Safety and Health Act, 29 USC §651, et seq.; the California Hazardous Waste Control Act, California Health and Safety Code §25100, et seq.; the California Toxic Substances Control Act, California Health and Safety Code §25300, et seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000, et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5, et seq.; the California Integrated Waste Management Act, California Public Resources Code §40000, et seq., as currently in force or as hereafter amended, and all rules and regulations promulgated thereunder.

Fiscal Year
“Fiscal Year” means the period commencing on each July 1 and ending on the following June 30.

Legislation
“Legislation” means any code, ordinance, resolution, or any other forms or enactment of the Agencies or any Member which now exists or which may hereafter be adopted which constitutes law or regulation.

MCAG
“MCAG” means Merced County Association of Governments or “Authority”.

Member
“Member” means any Agency (as defined above) which signs onto this Agreement.

Person
“Person” means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, special purpose district, town, city, county, state, or the United States.

Term
“Term” means the period of time specified in Article 4 of this Agreement.

Treasurer
“Treasurer” means the Finance Director of MCAG.

CITY COUNCIL
OF THE

CITY OF ATWATER
RESOLUTION NO. 3396-23

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ATWATER APPROVING THE RESTATED

JOINT POWERS AGREEMENT OF THE MERCED

COUNTY ASSOCIATION OF GOVERNMENTS

AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE AGREEMENT
WHEREAS, Government Code section 6500 et seq. authorizes two or more public agencies, by a joint powers agreement entered into respectively by them and authorized by their legislative or governing bodies, to jointly exercise any power common to them; and
WHEREAS, the Cities of Livingston, Merced, Los Banos, Atwater, Dos Palos, Gustine, and the County of Merced, possess in common the authority to study, discuss, and develop solutions to area-wide problems of direct concern to the performance of their constitutional and statutory functions; to do all acts necessary to participate in federal programs and receive federal funds for transportation, housing, and other community improvement activities, including contracting and cooperating with other agencies; and to establish an area planning organization and expend public funds for these purposes; and WHEREAS, the City of Atwater City Council and the residents of the City of Atwater have an interest in the orderly development of the Atwater community, as well as surrounding communities; and
WHEREAS, the continued growth and extensive development within he incorporated and unincorporated areas of Merced County have evidenced the need to create a wholly independent regional agency capable of dealing with area-wide concerns; and WHEREAS, on November 28, 1967, the foregoing needs led to the creation and establishment of Merced County Association of Governments (“MCAG”), of which City of Livingston is a member, pursuant to the Cooperative Agreement/Joint Powers Agreement (the “JPA Agreement”); and
WHEREAS, MCAG was designated by the County of Merced as the Local Transportation Authority for Merced County in 1990 and has operated as such from that date to the present; and

Resolution No. 3396-23 Page 2
WHEREAS, the establishment of MCAG has, among other things, provided a forum to study and develop solutions to area-wide concerns, provided efficiency and economy in governmental operations through the cooperation of MCAG’s member agencies and the pooling of common resources, facilitated cooperation among and agreement between MCAG’s member agencies for specific purposes, interrelated development actions, and for the adoption of common policies with respect to concerns which are common amongst the member agencies, and allowed for the imposition of a Regional Transportation Impact Fee with MCAG acting as the planning, administrative, and implementation entity; and WHEREAS, the JPA Agreement is set to expire, by its own terms, on July 18, 2023; and WHEREAS, the MCAG member agencies, by and through their designated attorneys and representatives, have negotiated the terms of a Restated Joint Powers Agreement, to be effective on July 19, 2023, for a term of thirty (30) years.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Atwater does hereby resolve, declare, and determine as follows:

1. The above recitals are true and correct and are incorporated herein by reference.

2. The City Council approves the Restated Joint Powers Agreement of the Merced County Association of Governments.

3. The City Manager, or her designee, is authorized and directed to execute the Restated Joint Powers Agreement of the Merced County Association of Governments.

The foregoing resolution is hereby adopted this 8th day of May 2023.

AYES:

NOES:

ABSENT:

APPROVED:

________________________________

MIKE NELSON, MAYOR
ATTEST:
_______________________________
KORY J. BILLINGS, CITY CLERK

CITY COUNCIL
OF THE

CITY OF ATWATER

ORDINANCE NO. CS 1061

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF ATWATER, AMENDING SECTION

3.45.140 OF THE ATWATER MUNICIPAL CODE
RELATED TO THE CITIZENS’ OVERSIGHT

COMMITTEE
WHEREAS, the people of the City of Atwater approved a one cent special transactions and use tax (“Measure B”) to fund the specific purposes of police, fire, and 911 emergency response services; and
WHEREAS, Measure B, by and through section 3.45.110 (“Amendments”) allows amendments to it provided they do not affect the rate or purpose of the tax; and WHEREAS, the City desires to amend certain provisions within Municipal Code section

3.45.140 as it relates to the Citizen Oversight Committee, and in particular clarifying the quorum requirement for 3 (instead of 4), staggering the terms of the appointed members to maximize continuity as much as possible upon term expiration, and to make the meetings quarterly rather than semi-annually.

NOW THEREFORE THE CITY COUNCIL OF THE CITY OF ATWATER DOES HEREBY ORDAIN, AS FOLLOWS:

SECTION 1: AMENDMENTS TO SECTION 3.45.140. Section 3.45.140 of the Atwater Municipal Code is hereby amended in its entirety as follows, with additions shown in underlines and deletions in strikethrough:

3.45.140 - Citizens’ Oversight Committee.

A. Committee Established. There is hereby established in the City a citizen's oversight committee to monitor the expenditures of revenue collected pursuant to this chapter only and report to the people and the City Council.

B. Selection of Members. Members of the citizens' oversight committee shall be appointed by the City Manager. The committee shall consist of five members. The citizens' oversight committee members shall not be current City employees,

Ordinance No. CS 1061 Page 2
officials, contractors, or vendors of the City. Past employees, officials or vendors shall be eligible to serve on the committee, provided that there are no conflicts of interest as determined by the City Attorney.

As used herein, the term "official" is not synonymous with the term "public official" as defined in the California Political Reform Act. The term "official" shall not include members or appointees serving on existing boards or commissions of the City of Atwater, including, but not limited to, the Planning and Zoning Commission and the Parks and Recreation Commission. The term "official" shall mean any person who is not an employee but performs the duties or functions of an employee of the City of Atwater for compensation under an outsourcing arrangement, including, but not limited to, the Fire Chief, the Finance Officer and any other positions which may be outsourced subsequent to the enactment of this Ordinance.

Of the members of the committee first appointed, three shall be appointed for terms of three years and two for terms of two years. Members of the committee Their successors shall be appointed for terms of three years. No member may serve more than two consecutive three-year terms.

The City Manager shall solicit citizens' oversight committee members through an open application process that is promoted through the City's adopted recruiting process. Any Atwater resident is eligible to apply for committee membership, subject to the appointment categories specified above. All applications will be reviewed by the City Manager, who will have the authority to make all final decisions on committee representation, subject to these guidelines.

C. Purpose and Jurisdiction. The citizens' oversight committee shall review expenditures of revenue collected pursuant to this chapter only to determine whether such funds are expended for the purposes specified in the then-current public safety measure police and fire expenditure plan and issuing reports on their findings to the City Council and public at least annually. Committee members may also review the annual financial or performance audits performed by an independent auditor. The committee shall confine its oversight specifically to revenues generated under this chapter. Revenue generated through other sources shall be outside the jurisdiction of the public safety measure citizens' oversight committee.

In order to preserve the integrity and independence of the oversight process, committee members will not play a formal role in contracting, project management, or any other aspect of the public safety measure funding.

The committee is not charged with decision-making on spending priorities, schedules, project details, funding source decisions (e.g., leveraged funds, developer fees, etc.),

Ordinance No. CS 1061 Page 3
financing plans, or tax rate assumptions. The committee shall serve in an advisory-only role to the City Manager. The committee shall have no jurisdiction other than that delegated to it by the people pursuant to this chapter.

The City Manager or designee shall provide any reasonable administrative or technical assistance required by the committee to fulfill its responsibilities or publicize its findings.

D. Meetings. The citizens' oversight committee shall meet semi-annually quarterly (or as otherwise provided for in approved or amended bylaws) with specific meeting dates to be determined by committee members. Citizens' oversight committee meetings are subject to the Brown Act. Meetings must be agendized and open to the public. Committee minutes and reports are a matter of public record and must be posted on a web site provided by the City. Additional meetings may be scheduled by the committee as necessary. All committee members shall attend a training and orientation session prior to attending their first regular committee meeting.

Committee members are expected to attend all regular meetings. Failure to attend two consecutive meetings may result in removal from the committee at the discretion of the City Manager.

E. Committee Operations. The citizens' oversight committee will select members to serve as chair and vice chair of the committee. A City staff person will be appointed by the City Manager or designee to serve as secretary. The secretary will be responsible for preparing, posting, and distributing agendas and taking minutes at each meeting. Approved minutes shall be made available to the public. Committee decisions, positions, findings, and procedures shall require a simple majority vote of those members in attendance. The quorum requirement for any meeting shall be a minimum of four three members.

F. Vacancies. Committee members may be removed from the committee only by the City Manager for repeated absence (see Section D of this section), for malfeasance, for failing to meet the qualifications set forth in this section or for inability or unwillingness to fulfill the duties of a member. In the event of removal, resignation, or death, the City Manager shall appoint a person to fill the vacant seat.

G. Miscellaneous. With the exception of those items specifically addressed in these guiding principles, the committee may draft and adopt its own standard procedures and bylaws by majority vote. All citizens' oversight committee procedures and bylaws remain subject to review and approval by the City Council. Citizens'

Ordinance No. CS 1061 Page 4
oversight committee reports and audits are subject to review and approval of the City Council.

SECTION 2. CEQA. This Ordinance is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The City Council further finds, under Title 14 of the California Code of Regulations, Section 15061(b)(3), that this Ordinance is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 3: SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable.

This City Council declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed, and the balance of the ordinance be enforced.

SECTION 4: PUBLICATION; EFFECTIVE DATE. Within 15 days from and after adoption, this Ordinance, or a summary thereof, shall be published once in a newspaper of general circulation printed and published in Merced County and circulated in Atwater, in accordance with California Government Code Section 36933, or as otherwise published in accordance with California law. This Ordinance shall take effect and be enforced 30 days after its adoption.

PASSED AND ADOPTED by the City Council of the City of Atwater on the day of , 20 , by the following vote:

INTRODUCED: April 24, 2023
ADOPTED:

AYES: Cale, Ambriz, Raymond, Button, Nelson
NOES: None
ABSENT: None

Ordinance No. CS 1061 Page 5
APPROVED:
__________________________________

MIKE NELSON, MAYOR
ATTEST:
______________________________
KORY J. BILLINGS, CITY CLERK

CITY COUNCIL

AGENDA REPORT

MEETING
DATE:

May 8, 2023
TO: Mayor and City Council
FROM: Delilah Youmara, Finance Director

PREPARED
BY:

Delilah Youmara, Finance Director
SUBJECT: Accepting City of Atwater’s audited Financial Statements and Single Audit for Fiscal Year ended June 30, 2022 (City Manager Waterman and Finance Director Youmara)

RECOMMENDED COUNCIL ACTION
Motion to accept the City of Atwater’s audited Financial Statements and Single Audit for Fiscal Year ended June 30, 2022; or
Motion to approve staff’s recommendation as presented.

I. BACKGROUND/ANALYSIS:

BACKGROUND:

The City’s independent external auditors, Badawi & Associates Certified Public Accountants, have completed the City’s annual audit and issued the Annual Financial Report and Single Audit Reports for the Fiscal Year Ended June 30, 2022 which includes the basic financial statements for the City and other required reports.

ANALYSIS:

The financial statements are prepared by the City’s Finance Department in accordance with Generally Accepted Accounting Principles (GAAP).

Our external auditors have the responsibility to audit these statements in accordance with the Generally Accepted Auditing Standards with the goal of determining whether the financial statements are free of material misstatement.

If this goal can be supported with the results of their audit, the external auditor will issue an unqualified or “clean” opinion. The financial statements, for Fiscal Year End June 30,2022, contain an unqualified opinion. In addition to the financial statements, the Auditors also issue a report on internal controls over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with the Government Auditing Standards.

CITY COUNCIL
Mike Nelson, Mayor
Danny Ambriz Tyler Button
John Cale Brian Raymond

Agenda Report - Page 2

This report details specifics about items of significant concern to the financial well being of the City. The Report of Internal Control identifies deficiencies in the City’s system of internal control and identifies the weakness as either a “Material Weakness” or “Significant Deficiency”. A Material Weakness is a deficiency that creates a reasonable possibility that a material misstatement will occur in the financial statements and a Significant Deficiency is a deficiency that is less severe than a Material Weakness.

The City’s report for June 30, 2022 identified no deficiencies or findings. The prior year Significant Deficiency in internal control pertaining to accounts payable function that occurred in fiscal year 2020-2021 has been permanently addressed this fiscal year, 2022-23.

Since Fiscal Year end June 30, 2019, the City's General Fund has maintained a positive Fund Balance. The Fund Balance has continued to increase year over year. The City Council took several positive steps prior to Fiscal Year 2019/2020 to resolve the negative Fund Balance in the General Fund. Resolution No. 3068-19 was adopted by City Council on March 25, 2019, establishing a General Fund reserve policy and interfund advance and loan policy. The Resolution set the minimum target level for the General Fund reserve at ten (10) percent of annual operating costs. The goal was to build-up to ten (10) percent in an orderly manner, over time. The policy of a ten (10) percent General Fund reserve was achieved by City Council within three fiscal year cycles. The Adopted Fiscal Year 2022/2023 Budget, included a General Fund Reserve Goal of 25 (twenty-five) percent.

The Management Discussion and Analysis (MD&A), starting on page 5 of the Annual Financial Report, provides the reader with an overview of the report and financial highlights included in the Annual Financial Report, along with an analysis of the City’s Basic Financial Statements. The MD&A tells the “number(s) story” in words and helps to explain the significance of the numbers in the financial statements which follow.

Governmental financial statements provide the reader with statements from two different viewpoints. The distinction is important for the reader to understand. The Basic Financial Statements are divided into two main sections; the Government-Wide Financial Statements and the Fund Financial Statements.

The Government-Wide Financial Statements combine all the resources, liabilities, and activities into one statement providing for a broader view of the City as a whole. These statements only distinguish between Governmental and Business Type activities.

The Fund Financial Statements on the other hand, provide detailed Fund level statements that focus primarily on the short-term activities of the City and correspond closely to the manner in which the Funds are reported for budget purposes.

The Notes to the Basic Financial Statements provide valuable insight into the financial organization of the City and provide supporting information for the significant categories

Agenda Report - Page 3

of accounts that appear throughout the Financial Statements.

II. FISCAL IMPACTS:

The fees for the independent audit services were approved by the City Council, in association with the Professional Services Agreement between the City and Badawi & Associates, Certified Public Accountants, in the amount of $36,820 for Fiscal Year End 2022. Sufficient appropriation is budgeted in the General Fund, Finance, Professional Service account number 0001-1015-3030.

This has been reviewed by the Finance Department.

III. LEGAL REVIEW:

This item has been reviewed by the City Attorney’s Office.

IV. EXISTING POLICY:

This item is consistent with goal number one (1) of the City's Strategic Plan: to ensure the City's continued financial stability.

V. ALTERNATIVES:

N/A
VI. INTERDEPARTMENTAL COORDINATION:

N/A
VII. PUBLIC PARTICIPATION:

The public will have an opportunity to provide comments on this item prior to City Council action.

VIII. ENVIRONMENTAL REVIEW:

This item is not a "project" under the California Environmental Quality Act (CEQA) as this activity does not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to Public Resources Code section 21065.

IX. STEPS FOLLOWING APPROVAL:

Upon acceptance, the City Clerk’s department will publish the City of Atwater's audited Financial Statements for Fiscal Year ended June 30, 2022 and related reports on the City’s website.

Submitted by:

Delilah Youmara, Finance Director

Agenda Report - Page 4

Submitted & Approved by:

Lori Waterman, City Manager
Attachments:

1. Atwater single audit FY22 final 3-31-2023

2. City of Atwater ACFR 2022 - FINAL

City of
Atwater
Atwater, California
Single Audit Reports
For the year ended June 30, 2022

City of Atwater
Single Audit Reports
For the year ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................... 1 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance .............................................. 3 Schedule of Expenditures of Federal Awards ..................................................................................................... 6 Notes to the Schedule of Expenditures of Federal Awards ............................................................................... 7 Schedule of Findings and Questioned Costs ....................................................................................................... 8

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atwater, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated March 31, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi & Associates, CPAs
Berkeley, California
March 31, 2023

REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM

GUIDANCE
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Atwater, California (City)’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

To the Honorable Mayor and Members of the City Council
of the City of Atwater
Atwater, California

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. Given these limitations, we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 31, 2023, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements.

The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Badawi & Associates, CPAs
Berkeley, California
March 31, 2023

City of Atwater
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2022
Assistance State
Listing Pass-through Program
Grantor Agency and Grant Title Number Number Expenditures U.S. Department of Transporation
Passed Through State of California Department of Transportation Highway Planning and Construction (Federal-Aid Highway Program) Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(028) 8,581 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(031) 14,602 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(021) 1,052 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(032) 34,396 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(030) 33,165 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(029) 1,777 Highway Planning and Construction (Federal-Aid Highway Program) 20.205 CML-5254(026) 36,812 Total Highway Planning and Construction (Federal-Aid Highway Program) 130,385
Total Department of Transportation 130,385
Total Highway Planning and Construction Cluster 130,385 Other Programs
Department of Homeland Security
Direct Programs
Disaster Grants-Public Assistance (Presidentially Declared Disasters) 97.036 n/a 4,681 Total Disaster Grants-Public Assistance (Presidentially Declared Disasters) 4,681 Total Department of Homeland Security 4,681
United States Department of Justice
Direct Programs
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2020-DJ-BX-0128 4,745 Total Edward Byrne Memorial Justice Assistance Grant Program 4,745 Total United States Department of Justice 4,745
Department of Transportation
Passed Through California Office of Traffic Safety
National Highway Traffic Safety Administration (NHTSA) Discretionary Safety Grants and Cooperative Agreements 20.614 n/a 37,909 Total National Highway Traffic Safety Administration (NHTSA) Discretionary Safety Grants and Cooperative Agreements 37,909 Total Department of Transportation 37,909
Department of Health and Human Services
Direct Programs
Low-income Household Water Assistance Program 93.499 n/a 3,649 Total Low-income Household Water Assistance Program 3,649 Total Department of Health and Human Services 3,649
Department of the Treasury
Direct Programs
Coronavirus State and Local Fiscal Recovery Funds
Coronavirus State and Local Fiscal Recovery Funds 21.027 n/a 1,394,879 Passed through State Water Resources Control Board
Coronavirus State and Local Fiscal Recovery Funds 21.027 n/a 273,466 Coronavirus State and Local Fiscal Recovery Funds 21.027 5B24NP00017 333,487 Total Coronavirus State and Local Fiscal Recovery Funds 2,001,832 Total Department of the Treasury 2,001,832
Total Other Programs 2,052,816
Total Expenditures of Federal Awards $ 2,183,201
The accompanying notes are an integral part of this schedule 6

City of Atwater
Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2022
A. Reporting Entity
The financial reporting entity consists of (a) the primary government, City of Atwater, California (City), (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.

B. Basis of Accounting
Funds received under the various grant programs have been recorded within the general, special revenue, and capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital projects funds. Expenditures of federal awards reported on the Schedule of Expenditures of Federal Awards (Schedule) are recognized when incurred.

C. Relationship of Schedule of Expenditures of Federal Awards to Financial Statements The accompanying Schedule presents the activity of all federal financial assistance programs of the City.

Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California is included in the Schedule.

The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.

D. Pass-Through Entities’ Identifying Number
When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

E. Indirect Costs
The City did not elect to use indirect costs.
7

City of Atwater
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section I – Summary of Auditor’s Results
Financial Statements
Types of auditors’ report issued on whether financial statements audited were prepared in accordance with GAAP Unmodified Internal control over financial reporting:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None noted
Any noncompliance material to the financial statements noted? No Federal Awards
Internal control over major programs:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None noted
Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with section 200.516(a)? No
Identification of major programs:

Assistance Listing
Number(s) Name of Federal Program or Cluster Expenditures

21.027 Coronavirus State and Local Fiscal Recovery Funds 2,001,832 $ Total Expenditures of All Major Federal Programs $ 2,001,832 Total Expenditures of Federal Awards $ 2,183,201
Percentage of Total Expenditures of Federal Awards 92%
Dollar threshold used to distinguish between type A and type B program $750,000 Auditee qualified as low-risk auditee under
section 200.520? No
8

City of Atwater
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2022
Section II – Current Year Findings
A. Financial Statement Audit
No current year financial statement findings.

B. Federal Award Program Audit
No current year federal award program audit findings.

Section III- Prior Year Findings
A. Financial Statement Audit
2021-001 – New Vendor Set up and Segregation of Duties (Significant Deficiency) Criteria:

An effective internal control system over financial reporting requires that sufficient segregation of duties exist in between vendor set up and accounts payable processing.

Condition:

The employee who has access to set up and edit vendors in the system also has access to accounts payable in the General Ledger and can perform check runs. The Finance Director performs only a high-level review on the check register, which is also certified by City Council. A fictitious vendor or improper change to an existing vendor would be difficult to detect.

Cause:

Duties in accounts payable are not adequately segregated.

Effect:

Unauthorized disbursements can be made through fictitious vendors or by making improper changes to existing vendor profiles.

Recommendation:

We recommend that the City print a change report from the accounts payable system for independent review, or that the check register with vendor information be reviewed in detail. We also recommend that the reviewers sign on the check log after each check run.

Management Response:

Beginning September 2021, the City of Atwater has segregated the vendor setup duty. In the interim, the Finance Director adds new vendors and updates vendor information. The Accounting 9

City of Atwater
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2022
Section III- Prior Year Findings, Continued
Technician who performs the check run does not add or update vendors in the Accounts Payable system. If the Finance Department is ever short staffed and in need of the Accounting Technician to perform both duties of adding vendors and performing check runs, management will be able to review the audit trail during that period of time. The City of Atwater has committed to this segregation of duty by budgeting a full time second Accounting Technician in FY 22-23.

The Finance Director has been reviewing the check register in detail on every warrant run. This includes reviewing the appropriate approvals on invoices for each vendor being paid. In addition to a fictitious vendor, a fictitious invoice and approvals will need to be created in order to pass the checks on the warrant run. Starting FY 21-22, the Finance Director has been signing off and dating the warrant run that includes all checks. The Finance Director also reviews all vendor change trail.

The City of Atwater management’s intent is to continue these checks and segregation of duties. We consider the procedures mitigated the deficiency without the second Accountant Technician.

Status:

Implemented.

B. Federal Award Program Audit
No prior year federal award program audit findings.
10

Atwater, California
Annual Financial Report
For the year ended June 30, 2022
Prepared by:

Finance Department

City of Atwater
Annual Financial Report
For the year ended June 30, 2022
Table of Contents
Page
i

INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v List of City Officials ................................................................................................................................................... viii City of Atwater Organizational Chart ....................................................................................................................... ix

FINANCIAL SECTION
Independent Auditor's Report ................................................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) ......................................... 5 Basic Financial Statements:

Government-Wide Financial Statements
Statement of Net Position ..................................................................................................................................... 25 Statement of Activities .......................................................................................................................................... 26 Fund Financial Statements
Governmental Funds:

Balance Sheet ...................................................................................................................................................... 30 Reconciliation of Governmental Funds Balance Sheet
to the Statement of Net Position ................................................................................................................... 31 Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................... 32 Reconciliation of Fund Basis Balance Sheet
to Government-wide Statement of Activities ............................................................................................. 33 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – General Fund ............................................................................ 34 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – Measure H Special Revenue Fund ........................................ 35 Statement of Revenues, Expenditures and Changes
in Fund Balances – Budget and Actual – Measure V Special Revenue Fund ......................................... 36 Proprietary Funds
Statement of Net position – Proprietary Funds .......................................................................................... 37 Statement of Revenues, Expenses, and Changes in Fund Net position ................................................. 38 Statement of Cash Flows ................................................................................................................................ 39

City of Atwater
Annual Financial Report
For the year ended June 30, 2022
Table of Contents
Page
ii
FINANCIAL SECTION, Continued
Fiduciary Funds:

Statement of Fiduciary Net Position ............................................................................................................ 39 Statement of Changes in Fiduciary Net Position........................................................................................ 40 Notes to the Basic Financial Statements ................................................................................................................ 43 Required Supplementary Information
Schedule of the City’s Proportionate Share of the
Net Pension Liability and Related Ratios – Last 10 years ............................................................................... 90 Schedule of Pension Contributions – Last 10 Years ............................................................................................ 92 Schedule of Changes in the Net OPEB Liability and Related Ratios – Last 10 Years .................................... 94 Schedule of OPEB Contributions – Last 10 Years ............................................................................................... 95 Other Supplementary Information
Combining and Individual Fund Financial Statements and Schedules Non-Major Governmental Funds:

Combining Balance Sheet ..................................................................................................................................... 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................... 99 Non-Major Special Revenue Funds:

Combining Balance Sheet ................................................................................................................................... 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .................................. 104 Statements of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Police Grants Fund ........................................................................................................................................... 108 Gas Tax Fund .................................................................................................................................................... 109 Local Transportation Fund ............................................................................................................................. 110 Facility Impact Fee Fund ................................................................................................................................. 111 Community Development Block Grants Fund ............................................................................................. 112 CDBG Program Income Fund ........................................................................................................................ 113 Home Investment Partnership Fund ............................................................................................................. 114 Housing Authority Fund ................................................................................................................................ 115 Narcotics Program Fund ................................................................................................................................. 116 Neighborhood Stabilization Fund ................................................................................................................. 117 Applegate Interchange Fund .......................................................................................................................... 118 Regional Surface Transportation Program Fund ......................................................................................... 119 ARPA Grant Fund ............................................................................................................................................ 120 Pension Rate Stabilization 115 Trust Fund ................................................................................................... 121 General Plan Update Grant Fund .................................................................................................................. 121

City of Atwater
Annual Financial Report
For the year ended June 30, 2022
Table of Contents
Page
iii
FINANCIAL SECTION, Continued
Combining Balance Sheet – Maintenance District Special Revenue Funds ...................................................... 124 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Maintenance District Special Revenue Funds ................................................................. 132 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Maintenance District Special Revenue Funds .............................................................. 139 Internal Service Funds:

Combining Statement of Net Position .............................................................................................................. 172 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................. 173 Combining Statement of Cash Flows ............................................................................................................... 174 Custodial Funds:

Combining Statement of Fiduciary Net Position ........................................................................................... 175 Combining Statement of Changes in Fiduciary Net Position ....................................................................... 176 Schedule of Debt Service Coverage ........................................................................................................................ 177

iv
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City of Atwater

OFFICE OF THE CITY MANAGER
750 BELLEVUE ROAD
ATWATER, CA 95301
(209) 357-6201
March 31, 2023
Honorable Mayor and Members
of the Atwater City Council
We are pleased to submit the City of Atwater’s Annual Financial Report for the fiscal year ended June 30, 2022. The financial statements are presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards. It is the policy of the Council that a licensed certified public accountant conducts an annual audit at the end of each fiscal year and issue a complete set of financial statements to be submitted to them.

Management is responsible for the completeness and reliability of the information contained in this report, based on a comprehensive framework of internal control that has been established for this purpose. We believe the data presented in this report is accurate in all material respects and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included.

Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements.

While traditionally addressed to the governing body of the City, this report is intended to provide relevant financial information to the citizens of the City of Atwater, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report.

The City’s financial statements have been audited by Badawi & Associates, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022, are free of material misstatements.

The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unqualified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. v Page 125 of 450
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

Profile of the City of Atwater
The City of Atwater was incorporated in 1922 and is located on State Route 99 in Merced County, California in a 6 square mile area approximately 6 miles west-northwest of Merced. The City has a current population of 31,978. The City of Atwater operates under a Council-Manager form of government and provides municipal services that include public safety, public works, community development and parks and recreation. In addition, the City provides water, wastewater, and solid waste services in the form of enterprise activities. This report includes all funds of the City of Atwater and its blended component unit, the Successor Agency of the Atwater Redevelopment Agency, for which the City is financially accountable.

The City Council establishes annual budgets for the General Fund, Proprietary Funds, and all Special Revenue Funds. Budgetary control is legally maintained at the fund level for these funds.

Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The Atwater City Council consists of five members, elected by districts to four-year terms. Council members must be residents of the City. The Mayor conducts the City Council meetings and represents the City on ceremonial occasions. The City Council serves as the policy board for the City of Atwater and provides policy direction, establishes goals, and sets priorities for the City government.

In addition to serving as the policy makers for the community, the City Council also is responsible for numerous land use decisions within its borders, including the General Plan. The City Council appoints the City Manager, City Attorney, and all members of advisory boards, commissions, and committees.

Local Economy
The City of Atwater was in the middle of a financial recovery when the COVID-19 pandemic hit in March 2019. The City of Atwater’s General Fund finances have performed better than other Central Valley cities during fiscal years 2020-2021 and 2021-2022 due largely to the composition of the general fund revenue profile. The City’s principle general fund revenue sources are property tax and sales tax which account for almost 52.9 percent of total General Fund revenue. Property and sales tax revenues have remained strong and the City’s housing market has continued to grow throughout the COVID-19 pandemic.

Financial Information
During the past fiscal year, there were no changes to the City’s financial policies or items in which policies impacted the financial information or presentation. Information concerning significant accounting policies affecting the finances of the City is summarized in the Notes to the Financial Statements.
vi

Acknowledgements
The preparation of this Annual Financial Report could not be accomplished without the efficient and dedicated service of the entire staff of the Finance Department and the auditing firm of Badawi & Associates. I would also like to express my appreciation to the members of the City Council and the various departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year.

Respectfully submitted,
______________________________
Lori Waterman,
City Manager
vii

City of Atwater
For the year ended June 30, 2022
List of City Officials

CITY COUNCIL
¾ Paul Creighton, Mayor
¾ John Cale, Mayor Pro Tem
¾ Brian Raymond, Council Member
¾ Tyler BuƩon, Council Member
¾ Danny Ambriz, Council Member

CITY OFFICIALS
¾ Lori Waterman, City Manager
¾ Lucy Armstrong, City Clerk
¾ Mark Borba, City Treasurer
¾ Frank Splendorio, City AƩorney
¾ Greg Thompson, Public Works/Community Development Director ¾ Jeanna Del real, Deputy City Manager/HR Director
¾ Delilah Youmara, Finance Director
¾ Michael Salvador, Police Chief
viii

ix

CITY OF ATWATER

ORGANIZATIONAL CHART
2022
Council Committees
Audit & Finance
Citizens Oversight for Public Safety Transaction and Use Tax Commission Electorate
City Treasurer
Mark Borba
City Council
Paul Creighton, Mayor
Brian Raymond, Mayor Pro Tem (District 4)
Danny Ambriz, Council Member (District 3)
John Cale, Council Member (District 1)
Tyler Button, Council Member (District 2)
Commissions
Planning
City Manager
Personnel Director
Lori Waterman
Deputy City Manager /
Human Resources
Jeanna Del Real
Community
Development /
Public Works
Greg Thompson
Fire
CAL Fire
Robert Ayuso
Police
Michael Salvador
City Administration /
City Clerk
Finance
Delilah Youmara
Community Services
-Recreation
City Attorney
Frank Splendorio
City Clerk
Lucy Armstrong

x
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atwater (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required pension and other post-employment benefit (OPEB) information on pages 5-19 and 90-95 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with

To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California

auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The other budgetary comparison schedules, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds, and schedule of debt service coverage are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor governmental funds are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor governmental funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The

To the Honorable Mayor and Members
of the City Council of the City of Atwater
Atwater, California

purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
March 31, 2023

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis
5 This section provides a narrative overview and analysis of the financial activities of the City of Atwater (City) for the fiscal year ended June 30, 2022. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
Government-wide Highlights
i City’s net position (assets and deferred outflows in excess of liabilities and deferred inflows) at June 30, 2022, totaled $90.4 million. Governmental activities the net position was $5.8 million, while the business-type activities net position was $84.6 million. i Total City revenues, including program and general revenues, and business-type activities were $51.5 million; while total expenses were $44.8 million. i Governmental program and general revenues were $28.7 million compared to governmental program expenses of $23.9 million.
i Program revenues from business-type activities were $24.1 million, while expenses for businesstype activities were $21.0 million. i The City’s total net capital asset balance for governmental activities was $21.5 million and $30.6 million for business-type activities.

Fund Highlights
i Net General Fund revenues and other financing sources (uses) exceeded expenditures by $5.6 million as compared to the prior year when revenues and other financing sources (uses) exceeded expenditures by $4.0 million.
i At June 30, 2022, the General Fund has a positive fund balance of $12.4 million.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT
This Annual Financial Report is in two major parts:
1) Introductory section, which includes the Transmittal Letter and general information; and, 2) Financial section, which includes the Management’s Discussion and Analysis (this part), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements along with the notes to these financial statements and Combining and Individual Fund Financial Statements and Schedules.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
6 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
The Basic Financial Statements
The Basic Financial Statements are comprised of the Government-wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.

Government-wide Financial Statements
The Government-wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net position and the Statement of Activities. The Statement of Net position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net position for the year.

All of the City’s activities are grouped into Governmental Activities and Business-type activities, as explained below. All the amounts in the Statement of Net position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole. ♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, public safety, highways and streets, urban redevelopment and housing, community services, and general administration. These services are supported by general City revenues such as taxes and by specific program revenues such as developer fees.
♦ Business-type activities – All the City’s enterprise activities are reported here, including Water, Sewer, and Sanitation Funds. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
7 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial Statements. However, unlike the Government-wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of the Governmental Fund Financial Statements is narrower than that of the Government-wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statement. By doing so, readers may better understand the long-term impact of the government’s near-term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all nonmajor funds summarized and presented only in a single column. Subordinate schedules present the detail of these nonmajor funds. Major funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of the City’s activities.

For the fiscal year ended June 30, 2022, the City’s major funds are as follows:

GOVERNMENTAL FUNDS:
i General Fund
i Measure H Special Revenue Fund
i Measure V Special Revenue Fund
PROPRIETARY FUNDS:
i Water Enterprise Fund
i Sewer Enterprise Fund
i Sanitation Enterprise Fund

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
8 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
For the fiscal year ended June 30, 2022, the City adopted annual appropriated budgets for all governmental funds.

Proprietary funds. The City maintains Enterprise-type and Internal Service proprietary funds.

Enterprise funds are used to report the same functions presented as business-type activities in the Government-wide Financial Statements. The City uses enterprise funds to account for Water, Sewer, and Sanitation activities. Internal service funds are an accounting methodology used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its fleet of vehicles and its information technology assets. Proprietary funds provide the same type of information as the Government-wide Financial Statements, only in more detail. The proprietary fund financial statements provide separate information for all of these operations.

Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found on pages 43–87 of this report.

Combining and Individual Fund Financial Statements and Schedules The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements can be found on pages 98–176 of this report.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
9 GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City’s net position, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $90.4 million as of June 30, 2022. The Summary of Net position as of June 30, 2021 and 2022 follows:

Overall, the total net position increased by $6.6 million. The total net position of governmental activities increased by $5.5 million and total net position for business-type activities increased by $1.1 million.

The total restricted net position increased by $2.0 million and unrestricted net position experienced a decrease of $8.6M over the previous year.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
10 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City’s total revenues for governmental and business-type activities were $51.5 million for the fiscal year ended June 30, 2022. Significant revenues for the City for fiscal year 2021-22 were derived from charges for services 55%, sales and use tax 18%, operating/capital grants and contributions 9%, property taxes and assessments 12%.

The following discusses variances in key revenues from the prior fiscal year for governmental and business-type activities:

1. Charges for Services. Charges for services increased $2.1 million or 7% over last fiscal year. This is primarily due to adopted increases in water and sewer user charges.

2. Sales and Use Tax. Sales Tax revenue decreased by $1.1 million or 12% over last fiscal year. This is primarily due to Measure V Regional and Measure V regular apportionments being included in the total and coming in high for fiscal year 2020-21. The City does continue to see economic growth even during the COVID-19 pandemic.

3. Operating/Capital Grants and Contributions. Capital contributions represent 9% of overall total revenues for the City.

4. Property Taxes and Assessments. Property tax revenue increased by $218,906 or 4% over last fiscal year. This is due primarily to higher property values.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
11 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2021, and 2022, follows:

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
12 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Expenses
Governmental and business-type activity expenses of the City for the year totaled $44.8 million.

Governmental activity expenses totaled $24 million or 53% of total expenses. Business-type activities incurred $21 million or 47% of total expenses during the fiscal year. Public safety costs represented 48% of total governmental activities expenses.

Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the programs. Net cost is the total cost less fees and other direct revenue generated by the activities.

The net cost reflects the financial burden that was placed on the City’s taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2021, and 2022, are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 5,121,443 $ 2,491,383 $ 6,976,469 $ 3,299,159 $ Public safety 8,695,486 8,030,392 11,447,544 8,638,860
Highway and streets 1,739,724 (3,665,334) 3,493,312 987,451 Urban revelopment and housing 875,920 728,319 1,146,702 1,005,143 Community services 273,648 27,542 770,751 767,594
Interest on long-term debt 40,542 40,452 19,430 19,430
Total 16,746,763 $ 7,652,754 $ 23,854,208 $ 14,717,637 $ 2021 2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
13 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Governmental Activities, Continued
Revenues by source for the fiscal years ended June 30, 2021, and 2022, are as follows:

Charges for services
$3,873,618

12.4%
Operating grants
$1,296,316

4.2%
Capital grants
$3,924,136

12.6%
Property taxes
$5,885,979

18.8%
Transient
occupancy taxes
$69,857

0.2%
Sales and use tax
$10,290,754

33.0%
Franchise fees
$914,660

2.9%
Other taxes
$1,725,746

5.5%
Intergovernmental
$2,707,936

8.7%
Use of money and
property
$163,149

0.5%
Other general
$374,567

1.2%
Revenues by Source - Governmental Activities 2021
Charges for services
$4,649,769

16.1%
Operating grants
$3,439,563

11.9%
Capital grants
$1,047,239

3.6%
Property taxes
$6,104,885

21.1%
Transient
occupancy taxes
$76,224

0.3%
Sales and use tax
$9,187,635

31.8%
Franchise fees
$961,869

3.3%
Other taxes
$2,360,721

8.2%
Intergovernmental
$519,401

1.8%
Use of money and
property
$(72,670)
-0.3%
Other general
$454,791

1.6%
Revenues by Source - Governmental Activities 2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
14 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Business-type Activities
The City has three business-type activities: Water, Sewer, and Sanitation Operations. The operating revenues and expenses for the business-type activities for the fiscal years ended June 30, 2021 and 2022 are as follows:
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Water Sewer Sanitation
Operating revenues
Operating expenses
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Water Sewer Sanitation
Operating revenues
Operating expenses
Operating Revenues and Expenses
Business-type Activities
2021
Operating Revenues and Expenses
Business-type Activities
2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
15 GOVERNMENT-WIDE FINANCIAL ANALYSIS, Continued
Business-type Activities, Continued
The revenues by source for the business-type activities for the fiscal years ended June 30, 2021, and 2022, are as follows:

Charges for
services,
22,444,216 ,

98.82%
Operating Grants
and Contributions,
268,985 , 1.18%
Revenues by Source - Business-type Activities 2021
Charges for
services,
23,760,407 ,

98.45%
Operating Grants
and Contributions,
374,740 , 1.55%
Revenues by Source - Business-type Activities 2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
16 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
The City of Atwater uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide financial statements.

Governmental Funds. The City’s governmental funds provide information on near-term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2022, the City’s governmental funds reported combined fund balances of $33.1 million. The increase is due mainly to increased charges for services and other revenues.

The General Fund is the chief operating fund of the City. At the fiscal year ended June 30, 2022, the General Fund had a fund balance of $12.4 million. The General Fund balance improved by $5.2 million from the prior fiscal year and is the fourth consecutive fiscal year with positive fund balance. The City continues to make positive progress.

Special Revenue Funds. The City’s special revenue funds include the Measure H major fund, gas tax funds, grant funds, facility impact fee funds, maintenance districts and other nonmajor funds.

As of June 30, 2022, the special revenue funds had a combined fund balance of $15.6 million.

Capital Projects Funds. The City’s capital projects funds consist of the general and performance bond nonmajor funds. As of June 30, 2022, the capital project funds had a combined negative fund balance of $49,342. This is due to pending reimbursements from MCAG.

Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statement. The City uses enterprise funds to account for its water, sewer and sanitation operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses the internal service funds to account for its building and equipment maintenances, as well as employee benefits fund. The City’s proprietary funds net position increased by $1.2 million for enterprise funds and increased by $498,818 for internal service funds in the fiscal year ended June 30, 2022. For the enterprise funds, the increase was due mainly to planned rate increases to utility users. The increase in the internal service funds net position was mainly the result of increase in interdepartmental charges.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not available to support the City’s own programs.

The accounting used for fiduciary funds is much like that used for proprietary funds.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
17 FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS, Continued General Fund Budgetary Highlights
General Fund actual revenues totaled $19.2 million which was 107.3 percent of the amended budget estimate. General Fund expenditures totaled $13.5 million or 85 percent of the approved amended budget. The General Fund balance increased by $5.2 million to a balance of $12.4 million.

CAPITAL ASSETS
The City’s net investment in capital assets for its governmental and business-type activities as of June 30, 2022 amounted to $52.1 million. This investment in capital assets includes land, construction in progress, costs for buildings and improvements, infrastructure, roads, and equipment.

The June 30, 2022 total balance reflects addition to construction in progress of $13.2 million. Total depreciation for the year amounted to $5.2 million.

More detail of the capital assets and current activity can be found in the notes to the financial statements on page 50 for significant accounting policies and Note 3 on pages 62 and 63 for other capital asset information.

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
18 DEBT ADMINISTRATION
At June 30, 2022, the City had $71.3 million in debt outstanding consisting of compensated absences, capital lease obligations and revenue bonds.

DEBT ADMINISTRATION, Continued
During the current fiscal year, the City’s net debt decreased by $2.1 million. The net decrease was due to scheduled principal payments and unamortized premium retirements. Additional information regarding each of the City’s debt issues as well as debt service requirements is discussed in greater detail in Note 4 to the financial statements on page 64.

NEXT YEARS BUDGET AND THE ECONOMY
The budget for Fiscal Year 2022-2023 budget was developed based on the City’s multi-year fiscal solvency recovery program and the lingering fiscal impacts of the COVID-19 pandemic. The City’s total Fiscal Year 2022-2023 adopted budget approves appropriations at $76.9 million. The budget provides funding for staffing of 105.5 positions and allocates funds for retirement and OPEB obligations.

After eight (8) years of operating at a deficit, the City’s General Fund has had a positive balance for four consecutive fiscal years and is projected to maintain a positive fund balance and continue to meet the reserve requirement as established by Council. The budget fulfills the goal of no new debt as well as allocating funds for General Fund reserves.

The City of Atwater is located in central California in Merced County. The City has experienced increases in economic activity, property and sales tax revenue, and an increased interest in development activity. Over the past several years, the City implemented a number of difficult cost saving and revenue measures which has stabilized the City’s financial situation.

As Atwater worked to climb out of the economic recession, we as well as our surrounding neighbors are faced with maintaining financial stability amidst the end of COVID-19 pandemic. Atwater continues to budget conservatively to not over-estimate our normally anticipated revenue.

Governmental Business-type
Activities Activities Total
Compensated absences $ 93,028 779,530 $ 872,558 $
Capital lease obligation - 669,720 669,720
2017A Wastewater Revenue Refunding Bonds 51,200,000 - 51,200,000 2018A Wastewater Revenue Refunding Bonds 13,870,000 - 13,870,000 Unamortized bond premium 4,689,354 - 4,689,354
Unamortized underwriting discount - -
Total 1,449,250 $ 69,852,382 $ 71,301,632 $
2022

City of Atwater, California
Basic Financial Statements
For the year ended June 30, 2022
Management’s Discussion and Analysis, Continued
19 In Fiscal Year 2022-2023, the citizens of the City of Atwater, approved a sales tax measure, Measure B, renewing the originally adopted Measure H that was scheduled to sunset by its terms on June 30, 2023. The renewal removed the sunset and increased the tax from half cent ($0.005) to one cent ($0.01). The existing Measure H has been providing much needed funding for enhanced public safety costs through FY 2022-2023. The newly adopted Measure B will continue to provide the necessary funding for enhanced public safety costs for years to come.

REQUESTS FOR INFORMATION
This Annual Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report, need additional financial information, or would like to obtain component unit financial statements, contact the City of Atwater Finance Department, 750 Bellevue Road, Atwater, CA 95301, or visit the City’s web page at www.atwater.org.

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BASIC

FINANCIAL STATEMENTS
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22

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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24

City of Atwater
Statement of Net Position
June 30, 2022
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 37,615,33 $ 53,831,105 4 $ 91,446,43 $ 9 Restricted cash and investments - 975,129 975,129
Receivables:

Accounts 3,371,980 3,031,502 6,403,482
Prepaid items 136,820 3,009 139,829
Total current assets 41,124,134 57,840,745 98,964,879
Noncurrent assets:

Advances to Successor Agency Private Purpose Trust 77,491 - 77,491 Investment in land held for resale 159,364 - 159,364
Capital assets:

Nondepreciable 6,625,729 31,087,345 37,713,074
Depreciable 72,505,267 122,299,202 194,804,469
Lease assets 249,376 - 249,376
Less accumulated amortization (71,713) - (71,713)
Less accumulated depreciation (57,017,607) (53,018,775) (110,036,382) Total capital assets 22,291,052 100,367,772 122,658,824 Total noncurrent assets 22,527,907 100,367,772 122,895,679 Total assets 158,208,517 63,652,041 221,860,558

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pension 7,327,117 - 7,327,117
Deferred outflows - OPEB 4,381,598 - 4,381,598
Total deferred outflows of resources 11,708,715 - 11,708,715

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 2,231,526 1,904,428 4,135,954 Interest payable - 537,809 537,809
Deposits payable 290,450 498,648 789,098
Other liabilities 48,272 791,547 839,819
Unearned revenue 2,140,691 56,938 2,197,629
Compensated absences - current portion 58,676 10,072 68,748 Long-term debt - current portion - 1,680,000 1,680,000
Total current liabilities 4,769,615 5,479,442 10,249,057 Noncurrent liabilities:

Compensated absences 720,854 82,956 803,810
Net pension liability 18,401,458 - 18,401,458
Net OPEB liability 23,860,133 - 23,860,133
Lease liabilities 191,862 - 191,862
Long-term debt 477,858 68,079,354 68,557,212
Total noncurrent liabilities 43,652,165 68,162,310 111,814,475 Total liabilities 48,421,780 73,641,752 122,063,532

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources - pension 15,215,717 - 15,215,717 Deferred inflows of resources - OPEB 5,848,582 - 5,848,582 Total deferred inflows of resources 21,064,299 - 21,064,299

NET POSITION
Net investment in capital assets 21,541,733 30,608,418 52,150,151 Restricted 8,700,981 975,129 9,676,110
Unrestricted (24,368,037) 52,983,218 28,615,181
Total net position $ 84,566,765 5,874,677 $ 90,441,442 $ Primary Government
See accompanying Notes to Basic Financial Statements.
25

City of Atwater
Statement of Activities
For the year ended June 30, 2022
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Governmental activities:

General government 6,976,469 $ 3,672,662 $ 4,648 $ - $ 3,677,310 $ Public safety 11,447,544 107,602 2,701,082 - 2,808,684
Highways and streets 3,493,312 866,348 733,833 905,680 2,505,861 Urban redevelopment and housing 1,146,702 - - 141,559 141,559 Community services 770,751 3,157 - - 3,157
Interest on long-term debt 19,430 - - - -
Total governmental activities 23,854,208 4,649,769 3,439,563 1,047,239 9,136,571 Business-type Activities:

Water 4,529,648 7,397,296 316,479 - 7,713,775
Sewer 12,295,830 11,722,088 12,402 - 11,734,490
Sanitation 4,130,522 4,641,023 45,859 - 4,686,882
Total Business-Type activities 20,956,000 23,760,407 374,740 - 24,135,147 Total primary government $ 28,410,176 44,810,208 $ 3,814,303 $ 1,047,239 $ 33,271,718 $ General Revenues:

Taxes:

Property taxes, levied for general purposes
Transient occupancy tax
Sales taxes
Franchise fes
Other taxes
Total taxes
Intergovernmental
Use of money and property
Other general revenues
Sale of real property
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
26

Governmental Business-Type
Activities Activities Total
$ - (3,299,159) $ (3,299,159) $
- (8,638,860) (8,638,860)
- (987,451) (987,451)
- (1,005,143) (1,005,143)
- (767,594) (767,594)
- (19,430) (19,430)
- (14,717,637) (14,717,637)
3,184,127 - 3,184,127
(561,340) - (561,340)
556,360 - 556,360
3,179,147 - 3,179,147
3,179,147 (14,717,637) (11,538,490)
- 6,104,885 6,104,885
- 76,224 76,224
- 9,187,635 9,187,635
- 961,869 961,869
- 2,360,721 2,360,721
- 18,691,334 18,691,334
- 519,401 519,401
(1,399,056) (72,670) (1,471,726)
- 154,791 154,791
- 300,000 300,000
(1,399,056) 901,522 (497,534)
(632,352) 632,352 -
(2,031,408) 1,533,874 (497,534)
1,147,739 5,507,571 6,655,310
83,419,026 367,106 83,786,132
$ 84,566,765 5,874,677 $ 90,441,442 $
and Changes in Net Position
Net (Expense) Revenue
27

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28

FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
29

City of Atwater
Balance Sheet
Governmental Funds
June 30, 2022
Measure H Measure V Nonmajor Total
General Special Special Governmental Governmental
Fund Revenue Fund Revenue Fund Funds Funds
ASSETS
Cash and investments 12,372,894 $ 653,899 $ 3,675,127 $ 18,091,717 $ 34,793,637 $ Receivables:

Taxes 405,971 - - 6,955 412,926
Interest 13,242 646 4,109 20,023 38,020
Intergovernmental 4,789 - 338,144 486,861 829,794
Other receivable 1,414,570 511,330 - 155,431 2,081,331
Prepaid items 59,618 - - 855 60,473
Due from other funds - - - - -
Advance to Successor Agency Private Purpose Trust - - - 77,491 77,491 Investment in land held for resale - - - 159,364 159,364 Total assets 1,165,875 14,271,084 4,017,380 18,998,697 38,453,036

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable 1,179,116 7,786 9,178 642,755 1,838,835 Accrued liabilities 211,633 23,569 - 14,120 249,322
Deposits payable 178,784 - - 111,666 290,450
Other liabilities - - - 48,272 48,272
Unearned revenue - - - 2,140,691 2,140,691
Total liabilities 31,355 1,569,533 9,178 2,957,504 4,567,570 Deferred Inflows of Resources
Unavailable revenues 270,426 - 51,604 464,739 786,769
Total deferred inflows of resources - 270,426 51,604 464,739 786,769 Fund Balances:

Nonspendable
Prepaid items 59,618 - - 294 59,912
Investment in land held for resale - - - 159,364 159,364 Restricted - 1,134,520 - 8,719,305 9,853,825
Assigned - - 3,956,598 6,866,368 10,822,966
Unassigned 12,371,507 - - (168,877) 12,202,630
Total fund balances 1,134,520 12,431,125 3,956,598 15,576,454 33,098,697 Total liabilities, deferred inflows of resources and
fund balances $ 1,165,875 14,271,084 $ 4,017,380 $ 18,998,697 $ 38,453,036 $ Major Funds
See accompanying Notes to Basic Financial Statements.
30

Total Fund Balances - Total Governmental Funds $ 33,098,697 Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

GovernmentWide Statement
of Net Position
Internal Service
Funds Total
Nondepreciable $ - 6,625,729 $ 6,625,729
Depreciable, net 15,665,323 (909,116) 14,756,207
Total capital assets $ (909,116 22,291,052 $ 21,381,936 ) Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the GovernmentWide Statement of Net Position. 3,657,700 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 786,769 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Deferred outflows of resources related to pension 7,327,117 Deferred outflows of resources related to OPEB 4,381,598 Deferred inflows of resources related to pension (15,215,717) Deferred inflows of resources related to OPEB (5,848,582) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet.

GovernmentWide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one year (58,676) $ 2,778 $ (55,898) $ Compensated absences - due in more than one year (720,854) 13,222 (707,632) Net pension liability (18,401,458) - (18,401,458)
Net OPEB liability (23,860,133) - (23,860,133)
Lease liability (191,862) - (191,862)
Long-term debt - due in more than one year (477,858) - (477,858) Total long-term liabilities $ 16,000 (43,710,841) $ (43,694,841) Net Position of Governmental Activities $ 5,874,677
City of Atwater
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2022
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements
31

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2022
Measure H Measure V Nonmajor Total
General Special Special Governmental Governmental
Fund Revenue Revenue Funds Funds
REVENUES:

Taxes and assessments 9,826,093 $ 2,857,070 $ 1,572,881 $ 1,250,899 $ 15,506,943 $ Licenses and permits 418,713 - - - 418,713
Fines and forfeitures 84,527 - - - 84,527
Intergovernmental 4,186,471 - - 3,181,701 7,368,172
Use of money and property 89,326 (3,230) (20,588) (127,823) (62,315) Charges for services 3,950,521 - - - 3,950,521
Other revenues 602,841 - - 258,530 861,371
Total revenues 2,853,840 19,158,492 1,552,293 4,563,307 28,127,932 EXPENDITURES:

Current:

General government 4,744,968 - - 618,981 5,363,949
Public safety 6,518,492 2,831,611 - 1 9,350,104
Highways and streets 1,623,667 - - 891,158 2,514,825
Urban redevelopment and housing 21,088 - - 961,743 982,831 Community services 586,440 - - 61,408 647,848
Capital outlay - 211,962 356,274 2,673,024 3,241,260
Debt service
Principal 41,697 279,691 - - 321,388
Interest and fiscal charges - 19,430 - - 19,430
Total expenditures 3,342,694 13,536,352 356,274 5,206,315 22,441,635

REVENUES OVER (UNDER)
EXPENDITURES (488,854) 5,622,140 1,196,019 (643,008) 5,686,297 OTHER FINANCING SOURCES (USES):

Transfers in 651,445 - - 1,308,597 1,960,042
Transfers out (978,620) - - (499,070) (1,477,690)
Proceeds from capital lease - 138,478 - - 138,478
Proceeds from sale of capital assets 300,000 - - - 300,000 Total other financing sources (uses) 138,478 (27,175) - 809,527 920,830 Net change in fund balances (350,376) 5,594,965 1,196,019 166,519 6,607,127 FUND BALANCES:

Beginning of year 6,836,160 1,484,896 2,760,579 15,409,935 26,491,570 End of year $ 1,134,520 12,431,125 $ 3,956,598 $ 15,576,454 $ 33,098,697 $ Major Funds
See accompanying Notes to Basic Financial Statements.
32

City of Atwater
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2022
Net Change in Fund Balances - Total Governmental Funds $ 6,607,127 Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 3,335,058
Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (1,423,189) Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals. (35,461) Debt proceeds provide current financial resources to governmental funds, but issuing debt increased longterm liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Long-term debt repayments 294,980
Issuance of new vehicle lease 138,478
Changes in the net pension liability and related deferred inflows and deferred outflows do not use or provide current financial resources and are therefore not reported in the funds. (4,304,665) Changes in the net OPEB liability and related deferred inflows and deferred outflows do not use or provide current financial resources and are therefore not reported in the funds. 207,898 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 322,348
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 364,997
Change in Net Position of Governmental Activities $ 5,507,571 Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements
33

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 8,819,783 $ 8,819,783 $ 9,826,093 $ 1,006,310 $ Licenses and permits 311,830 311,830 418,713 106,883
Fines and forfeitures 80,500 80,500 84,527 4,027
Intergovernmental 4,056,863 4,056,863 4,186,471 129,608 Use of money and property 144,493 144,493 89,326 (55,167) Charges for services 3,885,725 3,885,725 3,950,521 64,796 Other revenues 609,757 609,757 602,841 (6,916)
Total revenues 17,908,951 17,908,951 19,158,492 1,249,541 EXPENDITURES:

Current:

General government 5,109,523 5,109,523 4,744,968 364,555 Public safety 7,831,914 7,831,914 6,518,492 1,313,422
Public works 2,185,908 2,185,908 1,623,667 562,241
redevelopment and housing 21,089 21,089 21,088 1
Community services 783,500 783,500 586,440 197,060
Debt Service
Principal 41,697
Interest and charges -
Total expenditures 15,931,934 15,931,934 13,536,352 2,437,279

REVENUES OVER (UNDER)
EXPENDITURES 1,977,017 1,977,017 5,622,140 3,686,820
OTHER FINANCING SOURCES (USES):

Transfers in 674,435 674,435 651,445 (22,990)
Transfers out (1,331,926) (1,331,926) (978,620) 353,306 Sale of capital assets 300,000 300,000 300,000 -
Total other financing sources (uses) (357,491) (357,491) (27,175) 330,316 Net change in fund balances $ 1,619,526 1,619,526 $ 5,594,965 4,017,136 $ FUND BALANCES:

Beginning of year 6,836,160
End of year $ 12,431,125
Budget Amounts
34

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure H Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 2,500,000 $ 2,500,000 $ 2,857,070 $ 357,070 $ Use of money and property 1,000 1,000 (3,230) (4,230)
Total revenues 2,501,000 2,501,000 2,853,840 352,840
EXPENDITURES:

Current:

Public safety 2,909,541 2,909,541 2,831,611 77,930
Capital outlay:

General capital outlay 186,500 186,500 211,962 (25,462) Debt service
Principal 305,016 305,016 279,691 25,325
Interest and fiscal charges - - 19,430 (19,430)
Total expenditures 3,401,057 3,401,057 3,342,694 52,468

REVENUES OVER (UNDER)
EXPENDITURES (900,057) (900,057) (488,854) 405,308
OTHER FINANCING SOURCES (USES):

Proceeds from leases - - 138,478 138,478
Total other financing sources (uses) - - 138,478 138,478 Net change in fund balances $ (900,057) (900,057) $ (350,376) 543,786 $ FUND BALANCES:

Beginning of year 1,484,896
End of year $ 1,134,520
Budget Amounts
35

City of Atwater
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Measure V Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Taxes and assessments 1,030,147 $ 1,030,147 $ 1,572,881 $ 542,734 $ Use of money and property 2,700 2,700 (20,588) (23,288) Total revenues 1,232,847 1,232,847 1,552,293 319,446
EXPENDITURES:

Capital outlay:

General capital outlay 1,873,063 1,873,063 356,274 1,516,789 Total expenditures 1,873,063 1,873,063 356,274 1,516,789 Net change in fund balances $ (640,216) (640,216) $ 1,196,019 1,836,235 $ FUND BALANCES:

Beginning of year 2,760,579
End of year $ 3,956,598
Budget Amounts
36

City of Atwater
Statement of Net Position
Proprietary Funds
June 30, 2022
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
ASSETS
Current Assets:

Cash and investments 31,014,972 $ 20,165,046 $ 2,651,087 $ 53,831,10 $ 2,821,697 5 $ Restricted cash and investments - 975,129 - 975,129 -
Receivables:

Accounts 921,666 1,432,304 616,255 2,970,225 7,210
Interest 35,364 22,834 3,079 61,277 2,699
Due from other funds - - - - -
Prepaid expenses 1,003 1,003 1,003 3,009 76,347
Total current assets 31,973,005 22,596,316 3,271,424 57,840,745 2,907,953 Noncurrent:

Capital assets:

Nondepreciable 29,070,954 1,931,047 85,344 31,087,345 - Depreciable 19,918,761 101,813,770 566,671 122,299,202 2,685,031 Less accumulated depreciation (17,100,742) (35,462,736) (455,297) (53,018,775) (1,775,915) Net capital assets 31,888,973 68,282,081 196,718 100,367,772 909,116 Total noncurrent assets 31,888,973 68,282,081 196,718 100,367,772 909,116 Total assets 90,878,397 63,861,978 3,468,142 158,208,517 3,817,069

LIABILITIES
Current liabilities:

Accounts payable 887,824 977,078 2,147 1,867,049 137,078 Accrued payroll 14,424 20,932 2,023 37,379 6,291
Due to other funds - - - - -
Interest payable - 537,809 - 537,809 -
Deposits payable 498,648 - - 498,648 -
Other liabilities 741,655 49,892 - 791,547 -
Unearned revenue - 56,938 - 56,938 -
Compensated absences - current 3,542 5,727 803 10,072 2,778 Long-term debt - current - 1,680,000 - 1,680,000 -
Total current liabilities 2,146,093 3,328,376 4,973 5,479,442 146,147 Noncurrent liabilities:

Compensated absences 29,163 53,699 94 82,956 13,222
Long-term debt - 68,079,354 - 68,079,354 -
Total noncurrent liabilities 29,163 68,133,053 94 68,162,310 13,222 Total liabilities 71,461,429 2,175,256 5,067 73,641,752 159,369

NET POSITION
Net investment in capital assets 31,888,973 (1,477,273) 196,718 30,608,418 909,116 Restricted for capital projects - 975,129 - 975,129 -
Unrestricted 29,797,749 19,919,112 3,266,357 52,983,218 2,748,584 Total net position $ 19,416,968 61,686,722 $ 3,463,075 $ 84,566,765 $ 3,657,700 $ Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
37

City of Atwater
Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
OPERATING REVENUES:

Charges for services $ 11,722,088 7,397,296 $ 4,641,023 $ 23,760,407 $ 4,233,448 $ Other operating revenue 316,479 12,402 45,859 374,740 155,284 Total operating revenues 11,734,490 7,713,775 4,686,882 24,135,147 4,388,732 OPERATING EXPENSES:

Salaries and benefits 586,588 1,074,521 112,148 1,773,257 491,816 Contractual services 414,981 2,202,241 3,091,788 5,709,010 501,202 Materials and supplies 232,108 134,921 15,819 382,848 7,742 Repairs and maintenance - 82,415 - 82,415 708,706
Utilities 1,170,277 1,001,381 - 2,171,658 109,297
Insurance - - - - 1,865,514
Other operating costs 1,775,650 1,857,425 892,670 4,525,745 193,782 Depreciation 350,044 3,309,258 18,097 3,677,399 145,676 Total operating expenses 9,662,162 4,529,648 4,130,522 18,322,332 4,023,735 Operating income (loss) 2,072,328 3,184,127 556,360 5,812,815 364,997 NONOPERATING REVENUES (EXPENSES):

Intergovernmental revenues (expenses) - - - - (4,200)
Interest revenue (1,275,544) (108,777) (14,735) (1,399,056) (11,979) Interest expense - (2,633,668) - (2,633,668) -
Total nonoperating revenues (expenses) (2,742,445) (1,275,544) (14,735) (4,032,724) (16,179) Income before contributions and transfers (670,117) 1,908,583 541,625 1,780,091 348,818 CONTRIBUTIONS AND TRANSFERS:

Transfers in 52,801 67,222 - 120,023 200,000
Transfers out (452,375) (300,000) - (752,375) (50,000)
Total contributions and transfers (232,778) (399,574) - (632,352) 150,000 Change in net position (902,895) 1,509,009 541,625 1,147,739 498,818 NET POSITION:

Beginning of year 60,177,713 20,319,863 2,921,450 83,419,026 3,158,882 End of year $ 19,416,968 61,686,722 $ 3,463,075 $ 84,566,765 $ 3,657,700 $ Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
38

City of Atwater
Statement of Revenues, Expenditures and Changes in Net Position Proprietary Funds
For the year ended June 30, 2022
Governmental
Activities
Internal
Water Sewer Sanitation Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 7,502,160 $ 11,480,617 $ 4,527,334 $ 23,510,11 $ 4,407,683 1 $ Cash paid to suppliers for goods and services (8,779,626) (4,982,202) (4,000,500) (17,762,328) (3,360,838) Cash paid to employees for services (572,415) (1,108,680) (111,771) (1,792,866) (482,346) Net cash provided by (used in) operating activities 5,389,735 (1,849,881) 415,063 3,954,917 564,499 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash transfers in 52,801 67,222 - 120,023 200,000
Cash transfers out (452,375) (300,000) - (752,375) (50,000) Advance from other funds 562,140 (549,699) 12,441 -
Subsidy from grants - - - - (4,200)
Net cash provided by (used in)
noncapital financing activities 329,362 (399,574) (549,699) (619,911) 145,800 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Note principal payments (18,090) (1,823,099) (1,841,189) - Interest paid on capital debt - (2,645,097) (2,645,097) - Purchase of capital assets (11,553,232) (1,444,260) - (12,997,492) (115,689) Net cash provided by (used in)
capital and related financing activities (5,912,456) (11,571,322) - (17,483,778) (115,689) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received (1,283,179) (120,431) (16,252) (1,419,862) (11,979) Net cash provided by (used in) investing activities (120,431) (1,283,179) (16,252) (1,419,862) (11,979) Net cash flows (313,790) (15,103,956) (150,888) (15,568,634) 582,631 CASH AND INVESTMENTS - Beginning of year 21,453,965 46,118,928 2,801,975 70,374,868 2,239,066 CASH AND INVESTMENTS - End of year $ 21,140,175 31,014,972 $ 2,651,087 $ 54,806,234 $ 2,821,697 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) $ 2,072,328 3,184,127 $ 556,360 $ 5,812,815 $ 364,997 Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 350,044 3,309,258 18,097 3,677,399 145,676 (Increase) decrease in accounts receivable (211,127) (252,870) (158,545) (622,542) 41,499 (Increase) decrease in prepaid expense (488) (1,003) (1,003) (2,494) (22,548) Increase (decrease) in accounts payable (5,336,066) 267,639 (223) (5,068,650) 43,406 Increase (decrease) in accrued payroll 6,788 3,451 631 10,870 Increase (decrease) in accrued liabilities 103,001 28,542 - 131,543 (687) Increase (decrease) in deposits payable 46,455 - - 46,455 - Increase (decrease) in compensated absences 7,385 (37,610) (254) (30,479) (7,844) Net cash provided by (used in) operating activities $ 5,389,735 (1,849,881) $ 415,063 $ 3,954,917 $ 564,499 $ Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
39

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40

City of Atwater
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
RDA
Successor Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Current assets:

Cash and investments $ 131,857 682,488 $
Cash and investments with trustee/fiscal agent - -
Interest receivable 1,033 146
Loans/notes receivable 111,437 -
Total current assets 794,958 132,003
Land 706,256
Property, plant and equipment 8,839,611 -
Less accumulated depreciation (6,600,724) -
Property, plant and equipment 2,945,143 -
Total assets 132,003 3,740,101

LIABILITIES
Current liabilities:

Accounts payable 681 -
Due to others - 2,023
Due within one year 931,000 -
Total current liabilities 931,681 2,023
Long-term liabilities:

Advance from governmental funds/activities 77,491 -
Due after one year 2,940,000 -
Total long-term liabilities 3,017,491 -
Total liabilities 2,023 3,949,172

NET POSITION
Held in trust for dissolution of RDA (209,071) -
Held for the CFD Bond holders - 129,980
Total Net Position $ 129,980 (209,071) $
See accompanying notes to Basic Financial Statements.
41

City of Atwater
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2022
RDA
Successor Agency
Private Purpose
Trust Fund Custodial Funds
ADDITIONS:

Property taxes $ - 1,132,850
Investment income 905 (717)
Other additions 1,203,118 -
Total additions (717) 2,336,873
DEDUCTIONS:

Depreciation expense - -
Urban redevelopment and housing 1,154,782 -
Interest expense 61,648 -
Total deductions - 1,216,430
Change in net position (717) 1,120,443
NET POSITION:

Beginning of year, as restated (1,329,514) 130,697
End of year $ 129,980 (209,071) $
See accompanying notes to Basic Financial Statements.
42

43 NOTES TO BASIC

FINANCIAL STATEMENTS

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45 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Atwater (City) was incorporated in 1922, under the laws and regulations of the State of California (State). The City operates under a City Council/Manager form of government and provides the following services: public safety (Police), highways and streets, solid waste, storm water utility, public improvements, planning and zoning, and general administration.

The financial statements of the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. On June 15, 1987, GASB issued a codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The City applies all GASB pronouncements to its activities.

A. Financial Reporting Entity
The City operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. The City’s main funding sources include sales taxes, other intergovernmental revenue from state and federal sources, user fees, and federal and state financial assistance.

The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the City has the ability to impose its will on the organization, or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the City.

The basic financial statements of the City include only the financial activities of the City. The City does not have component units.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
46 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation
Government Wide Financial Statements
The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.

Certain types of transactions reported as program revenues for the City are reported in three categories:
x Charges for services
x Operating grants and contributions
x Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except for those representing balances between the governmental activities and business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
x Due to/from other funds
x Advances to/from other funds
x Transfer in/out
The City applies all applicable GASB pronouncements including all NCGA Statements and Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that meet specific qualifications.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
47 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means the amount is collectible within the current period or soon enough thereafter to pay current liabilities. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year end, with the exception of grant revenues and Transportation Development Act (TDA) revenues. Grant revenues are considered to be available if collected within 190 days and TDA revenues are considered to be available if collected within 90 days of the end of the current fiscal period.

The City reports the following major governmental funds:
x General Fund – used for all activities except those legally or administratively required to be accounted for in other funds.
x Measure H Special Revenue Fund – accounts for Measure H, a voter approved sales tax measure, to provide enhanced public safety costs.
x Measure V Special Revenue Fund - accounts for Measure V, a voter approved sales tax measure, to provide enhanced public safety costs.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows for all proprietary funds.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position present increases (revenues) and decreases (expenses) in total net position.

Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Operating revenues in the fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. The City reports the following proprietary funds as major:
x Water Enterprise Fund – accounts for the operation and maintenance of the City’s water treatment and distribution system.
x Sewer Enterprise Fund – accounts for the operation and maintenance of the City’s wastewater treatment plant and collection facilities.
x Sanitation Enterprise Fund – accounts for all activities associates with the operation and maintenance of providing solid waste services.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
48 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of presentation, Continued
Internal service fund balances and activities have been combined with governmental and business-type activities in the Government-Wide Financial Statements. These funds account for building maintenance, employee benefits, risk management and information technology.

Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has one private-purpose trust fund. The private-purpose trust fund accounts for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property).

Fiduciary funds are accounted for using the accrual basis of accounting.

The funds of the financial reporting entity are described below:
x Successor Agency – Former Atwater Community Development Agency Fund - accounts for funds collected and disbursed for the dissolution of the former Atwater Development Agency related to Administration and Retirement of enforceable obligations. x Custodial Funds - account for assets held by the City in a purely custodial capacity and are not presented in the government-wide financial statements.

C. Cash Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and shortterm investments with original maturities of three months or less from the date of acquisition.

The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Market value is used as fair value for those securities for which market quotations are readily available.

In accordance with GASB Statement No. 40, Deposit, and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
x Interest Rate Risk
x Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Cash Deposits and Investments, Continued
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures.

D. Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as “due to and from other funds.” Long-term interfund loans (noncurrent portion) are reported as “advances from and to other funds.” Interfund receivables and payables between funds within governmental activities are eliminated in the Statement of Net position. See Note 7 for details of interfund transactions, including receivables and payables at year-end.

E. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include property taxes, sales and use taxes, utility user taxes, intergovernmental subventions, interest earnings, and expense reimbursements.

In the fund financial statements, material receivables in governmental funds include revenue accruals such as property tax, sales tax, utility user tax, and intergovernmental subventions since they are usually both measurable and available. Non-exchange transactions collectible but not available, such as property tax, are deferred in the fund financial statements in accordance with the modified accrual basis, but not deferred in the government-wide financial statements in accordance with the accrual basis.

Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. The loans receivable are recorded in the fund statements, but are deferred to indicate they do not represent current financial resources. The loans are recognized when advanced in the government-wide statements. The City’s experience is that all accounts receivable are collectible; therefore an allowance for doubtful accounts is unnecessary.

F. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. In the governmental fund financial statements, prepaid items are offset with a reservation of fund balance for long-term assets to indicate they do not constitute current resources available for appropriation.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Capital Assets
The City's assets are capitalized at historical cost or estimated historical cost, if actual is unavailable, except for donated Capital Assets which are recorded at their estimated fair value at the date of donation. Policy has set the capitalization threshold for reporting at $5,000 for non-infrastructure capital assets and $25,000 for infrastructure capital assets.

Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems.

The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. No depreciation is recorded in the year of acquisition or in the year of disposition.

The range of estimated useful lives by type of asset is as follows:

H. Compensated Absences
Employees accrue vacation, sick, holiday, and compensatory time off benefits. City employees have vested interests in the amount of accrued time off, with the exception of sick time, and are paid on termination. Also, annually an employee may elect to be compensated for 40 to 120 hours of unused annual leave depending upon their length of service. All vacation pay is accrued when incurred in the government-wide and proprietary financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations or retirements and is currently payable. The City had no employee resignations or retirements for which compensated absences should be accrued in governmental funds at year-end. The general fund is typically used to liquidate compensated absences.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

In addition to liabilities, the statement of net position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

J. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Government of Example's California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

K. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Net Position and Fund Balance
Government-Wide Statements
Equity is classified as net position and is displayed in three components:
a. Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or bylaws or regulations of other governments or law through constitutional provisions or enabling legislation. c. Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets.”
Fund Financial Statements
Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable, restricted, committed, assigned, or unassigned. Proprietary fund equity is classified the same as in the government-wide statements. The classifications for governmental funds are defined as follows for the City:

Nonspendable Fund Balance –
x Assets that will never convert to cash (prepaid items, inventory). x Assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable).
x Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment).

Restricted Fund Balance –
x Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (creditors, grantors, contributors and other governments). x Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (e.g. Gas Tax).

Committed Fund Balance –
x Self-imposed limitations set in place prior to the end of the period (encumbrances, economic contingencies and uncertainties).
x Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove.
x Council resolution is required to be taken to establish, modify or rescind a fund balance commitment

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Net Position and Fund Balance, Continued
Assigned Fund Balance –
x Amounts in excess of nonspendable, restricted and committed fund balance in funds other than the general fund automatically are reported as assigned fund balance. x Assigned amounts for a specific purpose are as authorized by the City’s City Treasurer through its fund balance policy.

Unassigned Fund Balance –
x Residual net resources
x Total fund balance in the general fund in excess of nonspendable, restricted, committed, and assigned fund balance (surplus).
x Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).

M. Revenues, Expenditures, and Expenses
Property Tax
Property taxes in the State of California are administered for all local agencies at the county level and consist of secured, unsecured, and utility tax rolls. The following is a summary of major policies and practices relating to property taxes.

Property Valuations – are established by the Assessor of the County of Merced (County) for the secured and unsecured property tax rolls; the utility property tax rolls are valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by voters on June 6, 2078) properties are assessed at 100% of full value. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership.

Personal property is excluded from these limitations, and is subject to annual reappraisal.

Tax Levies – are limited to 1% of full value which results in a tax rate of $1.00 per $100 assessed valuation, under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation.

Tax Levy Dates – are attached annually on January 1 proceeding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Revenues, Expenditures, and Expenses, Continued
Tax Collections – are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, may be paid in two installments: The first is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property unless the taxes become delinquent. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.

The County levies, bills, and collects property taxes and special assessments for the City. Property taxes levied are recorded as revenue when received, in the fiscal year of levy, due to the adoption of the “alternate method of property tax distribution”, known as the Teeter Plan, by the City and the County.

The Teeter Plan authorizes the Auditor/Controller of the County to allocate 100% of the secured property taxes billed, but not yet paid. The County remits tax monies to the City in three installments as follows:
50 percent remitted in December
45 percent remitted in April
5 percent remitted in June
N. Budgetary Accounting
The City Council establishes budgets for the General Fund and all Special Revenue Funds, except for certain Special Revenue Funds for which expenditures are controlled by grant funding or by assessments received. Budgetary control is legally maintained at the fund level for these funds.

Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Manager is authorized to transfer budgeted amounts within a fund without formal council action or approval. The City Manager is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year. There were no material supplemental appropriations made for the fiscal year ended June 30, 2022. Budget information is presented for the General and budgeted Special Revenue Funds in the fund financial statements. The budget information is presented on a basis consistent with generally accepted accounting principles. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued O. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.

P. New Accounting Pronouncements
In 2022, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
¾ GASB Statement No. 87, Leases – The objective of this statement is to recognize in the financial statements certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract.
¾ GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of the Construction Period – The objective of this statement is to (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund. The requirements of this statement did not apply to the City for the current fiscal year. ¾ GASB Statement No. 92, Omnibus 2020 – The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The requirements of this statement did not apply to the City for the current fiscal year.
¾ GASB Statement No. 99, Omnibus 2022 – The primary objectives of this statement are to enhance the comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during the implementation and application of certain GASB Statements. The requirements of this statement did not apply to the City for the current fiscal year.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
56 2. CASH AND INVESTMENTS
Cash, cash equivalents, and investments are reported in the accompanying basic financial statements as follows:

Summary of Cash and Investments
At June 30, 2022, the City’s pooled cash and investments consist of the following:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
57 2. CASH AND INVESTMENTS, Continued
Deposits
The carrying amount of the City’s cash deposit was $14,480,455 at June 30, 2022.

Bank balances before reconciling items were a positive amount of $15,186,643 at June 30, 2022. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

The California Government Code (Code) Section 53652 requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. The Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
58 2. CASH AND INVESTMENTS, Continued
Investments
California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code of the City’s investment policy. During the year ended June 30, 2022, the City’s permissible investments included the following instruments:

Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum
Maximum Minimum Credit Maximum % Investment
Authorized Investment Type Maturity Quality of Portfolio in One Issuer Bankers' Accepances 180 days A-1, P-1 40% 5%
Certificates of Deposits 2 years N/A 20% $500,000 per entity Negotiable Certificates of Deposit 2 years A 30% $1m per entity Commercial Paper 270 days A-1 25% 10%
State of California Local Agency 10%
Investment Fund (State Pool) N/A N/A N/A N/A
Medium Term Notes 5 years A N/A 5%
Money Market Funds N/A Aaa 20% 20%
U.S. Treasury Securities 5 years N/A N/A N/A
U.S. Treasury Obligations None N/A N/A N/A
U.S. Government Agency Issues 5 years A 30% 5%
U.S. Government Agency Sponsored
Enterprise Securities 5 years N/A N/A N/A
Repurchase Agreements 1 year N/A 10% 10%
Mortgage pass-through and
asset backed securities 5 years AA 20% 5%
Supranational Obligations 5 years AA 30% N/A

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
59 2. CASH AND INVESTMENTS, Continued
Investments, Continued
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.

Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2022, the City had $54,398,105 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of 0.987125414 was used to calculate the fair value of the investments in LAIF.

Risk Disclosures
Interest rate risk –Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
12 Months 13 to 36 More than
Investment Type Total or less Months 36 Months
Government bonds 3,319,433 $ - $ 2,161,619 $ 1,157,814 $ Corporate bonds 5,662,360 - 3,269,782 2,392,578
Asset-backed securities 2,624,043 - 1,459,711 1,164,332 Suprational obligation 1,156,592 - 554,526 602,066
CMO 1,731,092 - 1,581,197 149,895
Money Market Fund 94,940 94,940 - -
Agency Obligation 7,413,078 - 5,329,797 2,083,281
Subtotal 22,001,538 94,940 14,356,632 7,549,966
Joint investment pools:

Local Agency Investment Fund 54,398,105 54,398,105 - -
CSJVRMA Investment Pool 1,135,569 1,135,569 - -
Total 77,535,212 $ 55,628,614 $ 14,356,632 $ 7,549,966 $ Investment Maturities (in Months)

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
60 2. CASH AND INVESTMENTS, Continued
Risk Disclosures, Continued
Credit risk – Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating at June 30, 2022 for each investment type:

Concentration of credit risk – The City’s investment policy does not allow for an investment in any one issuer that is in excess of five percent of the government’s total investments. The investments made by the City Treasurer are limited to those allowable under State statutes as incorporated into the City’s Investment Policy, which is accepted annually by the City Council. There were no concentrations in any one issuer for the year.

Custodial credit risk – investments. For investments, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside counterparty. For the investments maintained by the City, no security was uninsured or unregistered or held by a brokerage firm which is also the counterparty for the security.

Investment Total A3 A2 A1 Aa3 Aa1 Aaa
Governent bonds 3,319,433 $ - $ - $ - $ - $ - $ 3,319,433 $ Corporate bonds 5,662,360 263,219 5,399,141 - - - -
Suprational obligation 1,156,592 - - - - - 1,156,592
CMO 1,731,092 - - - - - 1,731,092
Money Market Fund 94,940 - - - - - 94,940
Agency Obligation 7,413,078 - - - - - 7,413,078
Subtotal 19,377,495 $ 263,219 $ 5,399,141 $ - $ - $ - $ 13,715,135 $ Not Rated:

Joint Investment Pool:

Local Agency Investment Fund 54,398,105
CSJVRMA Investment Pool 1,135,569
Asset-backed securities 2,624,043
Total Investments 77,535,212
Rating as of June 30, 2022

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
61 2. CASH AND INVESTMENTS, Continued
Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2022:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
62 3. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2022, was as follows:

Depreciation expense for capital assets was charged to functions as follows:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
63 3. CAPITAL ASSETS, Continued
Business-type capital asset activity for the year ended June 30, 2022, was as follows:

Depreciation expense for capital assets was charged to functions as follows:

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
64 4. LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2022:

The following is a summary of changes in long-term liabilities for business-type activities for the year ended June 30, 2022:

Governmental Activities:

Lease-Purchase financing:

The City of Atwater has entered into two separate lease agreements as lessee for financing the acquisition of five patrol vehicles valued at $204,276 and ladder fire truck valued at $783,751. The interest rates on the leases are 1.98% and 2.65%, respectively. The patrol vehicles have a 5-year estimated useful life and the ladder truck has a 15-year estimated useful life. Title reverts to the City after payment of the minimum lease payments, and, therefore, have been recorded at the present value of future minimum lease payments.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
65 4. LONG-TERM LIABILITIES, Continued
Lease-Purchase financing, Continued
In fiscal year 2021, the City of Atwater entered into a lease agreement as lessee for financing the acquisition of police bodycam equipment valued at $105,012. The bodycams have 5-year estimated useful life.

Lease liabilities
Pursuant to the GASB 87, the City has following lease liabilities:

In fiscal year 2021, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2053-23C8PN) valued at $45,349. As of June 30, 2022, the value of the lease liability is $30,077. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $944. The value of the right to use the asset as of June 30, 2022 of $30,077 is included in the intangible assets on the capital assets activities table found in Note 3 above.

City of Atwater
Notes to Basic Financial Statements
For the Year Ended June 30, 2022
66 4. LONG-TERM LIABILITIES, Continued
In fiscal year 2020, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2045-239MBF) valued at $46,033. As of June 30, 2022, the value of the lease liability is $21,994. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $1,198. The value of the right to use the asset as of June 30, 2022 of $21,994 is included in the intangible assets on the capital assets activities table found in Note 3 above.

In fiscal year 2020, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2047-23C8Q4) valued at $25,785. As of June 30, 2022, the value of the lease liability is $12,876. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $667. The value of the right to use the asset as of June 30, 2022 of $12,876 is included in the intangible assets on the capital assets activities table found in Note 3 above.

In fiscal year 2020, the City of Atwater entered into a lease agreement as lessee with Enterprise for one police vehicle (Vehicle #2048-23C8Q3) valued at $25,785. As of June 30, 2022, the value of the lease liability is $12,929. The vehicle has 4-year estimated useful life. The City is required to make monthly payment of $669. The value of the right to use the asset as of June 30, 2022 of $12,929 is included in the intangible assets on the capital assets activities table found in Note 3 above.

Year Ending
June 30, Principal Interest
2023 7,129 $ 909 $
2024 5,800 228
Total 12,929 $ 1,137 $