/
AVALON CITY COUNCIL MEETING
TUESDAY, JANUARY 18, 2022— 5:00 P.M.
410 AVALON CANYON ROAD
THIS VIRTUAL MEETING IS HELD PURSUANT TO AB 361
AGENDA
In compliance with the Americans with Disability Act: if you need special assistance to participate in this meeting, please contact Denise Radde, City Clerk (310) 510-0220. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35. 102-35.104 ADA Title ll) All public records relating to an agenda item on this agenda are available for the public inspection at the time the records are distributed to all: or a majority of all: members of the City Council.Such records shall be available at City Hall located at 410 Avalon Canyon Rd.
Due to health recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (CaI/OSHA), and the declared state of emergency wherein socialdistancing measures have been imposed or recommended: the CITY OF AVALON’S CITY COUNCIL and PLANNING COMMISSION MEETINGS SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general pub//c may attend the meet/ny in the Counci/ Chambers however must adhereto socia/ distancing requirements and wear a mask or face covering at all times. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.
Council Chambers are open to a maximum 30 members of the general public. Once the Council Chambers reach maximum occupancy, the general public may participate in Oral Communication andaddress the City Council on an agenda item in person by waiting in the City Hall Court Yard and entering the Chambers one at a time at the appropriate time. No one will be admitted into the Council Chamberswho is ill or exhibiting symptoms of COVID-19. All individuals entering the Council Chambers must wear a mask or face covering at all times. Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via eComment. Please use the link below to provide comments via e-Comment.
The meeting can be viewed:
On local cable: Catalina Broadband Solutions channel 3
Streaming Online: www.cityofavalon.com/nieetinqs *Streaming on Facebook Live: www.facebookcom/CityOfAvalonOffici To submit comments using eComment, please follow this link:
https:Ilavalon.qranicusideas.com
Click the Meetings tab and then Post to comment on the 0111812022 meeting.
CALL TO ORDER! PLEDGE OF ALLEGIANCE I INVOCATION I ROLL CALL
ANNOUNCEMENTS I WRITTEN COMMUNICATIONS
PRESENTATIONS
1. Amanda Tropiano, Principle of the DeNovo Planning Group will provide an overview on the City’s Draft 2021-2029 Housing Element. (10 minutes) No City Council action is requested at this time.
2. Luke Schaner from Southern California Edison will provide a Catalina Water Availability and Allocation Plan Update.
DEPARTMENT HEAD REPORTS
CITY COUNCIL AGENDA
JANUARY 18, 2022
PAGE 2CITY MANAGER REPORT I CITY ATTORNEY REPORT
COUNCILMEMBER REPORTS I MAYOR REPORT
ORAL COMMUNICATION
Members of the public may address the City Council at this time. No action will be taken on nonagenda items at this meeting. Speakers should limit comments to two (2) minutes each.
CONSENT CALENDAR
1. Minutes
Although the live recording is the official record of public meetings, actions are prepared for the Council’s approval.
Recommended Action
Approve minutes from the January 4, 2022 regular City Council Meeting.
2. Warrants
Expenditures Submitted for Approval
o Warrants in the amount of $290,270.90.o One payroll in the amount of $194,283.00. o Four electronic fund transfers totaling $169,962.23.
Recommended Action
Approve total expenditures for December 27, 2021 through January 7, 2021 totaling $654,516.13.
3. Consideration of a Planning Commission Resolution Recommending City Council Adoption of the Annual Growth Policy for 2022
The Avalon Municipal Code stipulates that the City Council, in conjunction with the Planning Commission, shall review the growth permitted in the preceding ten months,review the effects and demands of such development and any additional development upon the City’s natural resources, and determine, by resolution, the amount and type of growth the City will permit in the succeeding year, as well as City priorities for growth.
Recommended Action
Adopt a resolution establishing the City of Avalon’s Annual Growth Policy for 2022.
4. Repair & Maintenance of City Floats 2 and 3 Located at the Cabrillo Mole Due to budgetary constraints and the COVID-19 pandemic, the City deferred maintenance on a number of infrastructure projects including the rehabilitation of MoleFloats 2 and 3. Mole Floats 2 and 3 are in need of repair and maintenance within thescope of work that is routinely and safely provided by Al Larson Boat Shop, a sole sourcevendor.
Recommended Action
Authorize the Harbor Master to contract with Al Larson Boat Shop, a sole source vender, for the Repair and Maintenance of City Floats 2 and 3 for a sum not-to-exceed $249,999.00.
CITY COUNCIL AGENDA
JANUARY 18, 2022
PAGE 3
5. Fifth Amendment to the Franchise Lease Agreement between the City of Avalon and CR&R, Inc.
During the January 4, 2022 City Council meeting, members of the City Council requested clarification and codification of specific information regarding the fifth amendment to the Franchise Lease Agreement between the City of Avalon and CR&R, Inc. çCR&R”). CityStaff was directed to answer specific questions regarding CR&R and City operations andprocedures and bring this item back at the next regular City Council meeting.
Recommended Action
Authorize the City Manager to execute the Fifth Amendment to the Franchise and Lease Agreement between the City of Avalon and CR&R, Inc.
6. CaiRecycle SB 1383 Local Assistants Grant Program Resolution The Department of Resources Recycling and Recovery offers SB 1383 Local Assistance Grant Program, a non-competitive grant program that will provide one-time funding to local jurisdictions to assist with the implementation of regulations associated with SB 1383. The City of Avalon is estimated to receive approximately $20000 in grant funding.
Recommended Action
Adopt a resolution authorizing the City Manager to execute all documents necessary to secure funds and implement a potential CalRecycle grant to support implementation ofSB1383.
7. Fourth of July Barge
The City contracts a barge company annually to facilitate the Fourth of July fireworks show. Curtin Maritime expressed their interest in providing the barge service for the Fourth of July show and offered to match the lowest bid received by any barge company.
Additionally, Curtin Maritime offered to only charge for the hard costs and donate any remaining monies back to the City of Avalon to support youth activities.Recommended Action Authorize the City Manager to execute an agreement with Curtin Maritime to provide barge services for the 2022 Fourth of July fireworks display.
GENERAL BUSINESS
8. City of Avalon FY2020-2021 Comprehensive Annual Financial Report - Fiscal Year Ended June 30, 2021
The City is required to conduct an annual independent audit of its financial statements.The audit firm of Davis Farr LLP conducted the annual audit and with staff assistance prepared the required financial statements. For the fiscal year ending June 30, 2021, theCity received an unqualified opinion. The auditor is in a position to express an unqualified opinion on the financial statements when the auditor conducted an audit in accordance with the standards of the Public Company Accounting Oversight Board and concludes that the financial statements, taken as a whole, are presented fairly, in all material respects, in conformity with the applicable financial reporting framework.
Recommended ActionReceive and file the Comprehensive Annual Financial Report and other audit reports for the Fiscal Year Ended June 30, 2021.
CITY COUNCIL AGENDA
JANUARY 18, 2022
PAGE 4
ADJOURN
NOTICE OF POSTING
I. Denise Radde, declare that the City Council Agenda for Tuesday, January 18, 2022 was posted on Thursday, January 13, 2022 on the City’s website www.cityofavalon.com, and at City HaIl, 410 Avalon Canyon Road,
Denise A. Radde, City Manager and City Clerk
CITY OF AVALON CITY COUNCIL
MEETING DATE: January 18, 2022 AGENDA ITEM: 1ORIGINATING DEP: City Clerk CITY MANAGER: 9’.’.
PREPARED BY: Gabrielle Morones, Deputy City ClerkSUBJECT: City Council Minutes RECOMMENDED ACTION(S): Approve minutes from the January 4, 2022 RegularCity Council Meeting.
REPORT SUMMARY: Although the live recording is the official record of public meetings, minutes are prepared for the Council’s approval.
FISCAL IMPACTS: N/A.
GOAL ALIGNMENT: Not Aligned.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A.
FOLLOW UP ACTION: File minutes in the City Clerk’s office.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed onthe posted agenda pursuant to the Brown Act.ATTACHMENTS:
1) January 4, 2022 City Council Minutes
AVALON CITY COUNCIL MEETING
TUESDAY, JANUARY 4, 2022 — 5:00 P.M.
410 AVALON CANYON ROAD
THIS VIRTUAL MEETING WAS HELD PURSUANT TO AB 361
MINUTES
Due to health recommendations from the Center for Disease Control and State of CaliforniaDivision of Occupational Safety and Health (CaIIOSHA), and the declared state of emergency wherein social distancing measures have been imposed or recommended, the CITY OF AVALON’S CITY COUNCIL and PLANNING COMMISSION MEETINGS SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting inthe Council Chambers however must adhere to social distancing requirements and wear a mask or face covering at all times. The public is encouraged to watch and participate from the safety of their homes while practicing social distancing.Council Chambers are open to a maximum 30 members of the general public. Once the Council Chambers reach maximum occupancy, the general public may participate in OralCommunication and address the City Council on an agenda item in person by waiting in the City Hall Court Yard and entering the Chambers one at a time at the appropriate time. No one will be admitted into the Council Chambers who is ill or exhibiting symptoms of COVID-19. All individuals entering the Council Chambers must wear a mask or face covering at all times.
Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via e-Comment. Please use the link below to provide comments via e-Comment.
CALL TO ORDER- 5:00 p.m.
ROLL CALL-Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Cinde Cassidy, Lisa Lavelle, Michael Ponce, and Yesenia De La Rosa. Also present: City Manager/City Clerk Denise Radde, Assistant City ManagerMichael Parmer and City Attorney Scott Campbell. Absent: Deputy City Clerk/Senior Administrative Assistant Gabrielle Morones.
WRITTEN COMMUNICATIONS-The City Manager/City Clerk Denise Radde received one written communication regarding Item #8 Fifth Amendment to the Franchise Lease Agreement between the City of Avalon and CR&R, Inc. and #9 Discussion on Establishing Minimum Number of Nights for Transient Rentals.
PRESENTATION — Catalina Island Medical Center provided a brief update on COVID 19 and the impact of the Omicron and Delta variants.
CONSENT CALENDAR-There were eight Items on the Consent Calendar. The City Manager/City Clerk Denise Radde removed Item #8 from the Consent Calendar andplaced it under General Business. Motion to approve Items #1 - #7 made by Michael Ponce, seconded by Yesenia De La Rosa. (All Ayes)
CITY COUNCIL MINUTES
JANUARY 4, 2022
PAGE 2
1. Minutes
Approved minutes from the December 7, 2021 regular City Council Meeting andthe December 15, 2021 Special City Council Meeting.
2. Warrants
Approved warrants in the amount of $1736686.40, two payrolls in the amount of $373,771.71, five electronic fund transfers totaling $187,950.52 for a total of$ 2,298,408.63 for November 29, 2021 through December 24, 2021.
3. Findings to Continue to Hold Remote TeleconferenceNirtual City Council Meetings Pursuant to Assembly Bill 361
Determined that the COVID-19 state of emergency proclaimed by the Governor still exists and has been considered by the City Council in deciding to continue to have teleconference meetings and that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID 19, and that as a result of the COVID-19 emergency, meeting in person would present imminent risks to the health or safety of attendees.
4. Development Impact Fees (DIF) Annual Report for the Fiscal Year Ended June 30, 2021
Received and filed the Fiscal Year 2020-21 Development Impact Fees AnnualReport.
5. 2022 Waterside Permit Renewals
Authorized the Harbor Master to renew the attached list of Waterside Permits for 2022.
6. Waterside Permit Application — Taylored Catalina Charters City Council made the affirmative finding that conditions set forth in the AvalonMunicipal Code have been met and grant the Waterside Permit Application to Taylored Catalina Charters, with the following conditions: 1. All operations to load and unload charter passengers will take place on Cabrillo Mole floats except on cruise ship days when all loading and unloading will be from the floats on the Green Pier. 2. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.
7. Authorize Purchase of an Acoustic Water Leak Detector Authorized the City Manager or their designee to procure per the City’s purchasing policy an acoustic water leak detector for a total not to exceed $9,000.
CITY COUNCIL MINUTES
JANUARY4, 2022
PAGE 3
GENERAL BUSINESS
8. Fifth Amendment to the Franchise Lease Agreement between the City of Avalon and CR&R, Inc.
Members of the City Council requested clarification and codification of specificinformation regarding the fifth amendment to the Franchise Lease Agreement between the City of Avalon and CR&R, Inc. (“CR&R”). City Staff was directed to answer specific questions regarding CR&R and City operations and procedures and bring this item back at the next regular City Council meeting.
9. Discussion on Establishing Minimum Number of Nights for Transient Rentals There was no consensus to establish an annual minimum number of nights fortransient rentals. City Council directed Staff to consider increasing the business license fee for transient rentals for the next Fiscal Year 2022-2023 Fee Schedule.
10. Request for Proposal for Snack Bar Concessions at Joe Machado Field At the request of a member of City Council. Staff was directed to bring this item back for further discussion, The current tenant! Matt Affolder, reached out toCouncil asking for the RFP discussion to be heard again since he did not have an opportunity to address the Council at the December 7, 2021 meeting. Affolder had not been officially notified that Staff was asking to authorize a Request for Proposals for the concession stand at JMF, following his request to terminate his lease and for the item to be considered at the December 7, 2021 City Councilmeeting.
Recommended Action
Discuss and provide direction to Staff. Staff recommendation is to proceed forward with the authorized and published Request for Proposal and timeline for a qualified business party to contract for operations at the snack bar concessionat Joe Machado Field.
Mayor Marshall adjourned the meeting at 7:41 p.m.I, Gabrielle Morones, Deputy City Clerk, do hereby certify that the DVD videotape of the City Council Meeting on January 4, 2022, is the official record of the Council Meetingand is on file and maintained in City Hall.
Gabrielle Morones, Deputy City Clerk I Sr. Administrative Assistant
CITY OF AVALON CITY COUNCIL
MEETING DATE:
ORIGINATING DEP:
January 181 2022
Finance
AGENDA ITEM:
CITY MANAGER:
I
\N;
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve total expenditures
January 7, 2021 totaling $654,516.13.
for December 27, 2021 through
REPORT SUMMARY: These disbursements through January 7th are comprised of warrants totaling $290,270.90, one payroll totaling $194283.00, and other electronic fund transferstotaling $169,962.23.
L ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 33654-33718 $ 290,270.90 01/07/22 PAYROLL 194,283.00 12/31/21EFT
-CALPERS MEDICAL 67,987.07 01/07/22
EFT -CALPERS UAL 68,735.51 01/07/22
EFT -CALPERS RETIREMENT 32,188.87 12/30/21
EFT -HARBOR/REC CC AND BANK SERVICE FEES 1,050.78 01/07/22 [ TOTAL DISBURSEMENTS $ 654,516.13
GOAL ALIGNMENT: Ongoing meeting of City obligations.
FISCAL IMPACTS: There are sufficient funds available, and the FY21-22 Budget.
the expenditures are included in
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS: Audit Certificate, Warrant List, US Bank Credit Card Details
CITY OF AVALON
DECEMBER 27, 2021 -JANUARY 7,2022 DISBURSEMENTS
January 18, 2022
ITEM DESCRIPTiON AMOUNT DATE
GE US BANK WARRANTS CK# 33654-33718 $ 290,270.90 01/07/22 PAYROLL 194,283.00 12/31/21EFT -CALPERS MEDICAL 67,987.07 01/07/22ER - CALPERS UAL 68,735.51 01/07/22ER- CALPERS RETIREMENT 32,188.87 12/30/21 EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 1,050.78 01/07/22 TOTAL DISBURSEMENTS $ 654,516.13
CERTIFICATE
IN ACCORDANCE WITH SECTION 32702OF THE GOVERNMENT CODE, I CERTIFY
THAT THE ABOVE DEMANDS ARE ACCURATEAND THAT FUNDS ARE AVAILABLE FOR PAYMENT.
APPROVED AND AUDITED THIS
18TH DAY OF JANUARY 2022 I CERTIFY UNDER PENALTY OF PERJURY
THAT THE FOREGOING IS TRUE AND
CORRECT.
AUDIT COMMITTEE -LISA LAVELLE EXECUTED THIS 18TH DAY OF JANUARY 2022
AUDIT COMMITTEE -YESENIA DF LA ROSA FINANCE DIRECTOR- MATTHEW BAKER
CITY OF AVALON
DECEMBER 27, 2021- JANUARY 7,2022 DISBURSEMENTS
January 18, 2022
AAA OIL, INC
ACTION SALES & METAL CO.AMAZON CAPITAL SERVICES, INC.AVALON FREIGHT SERVICES, LLCAVALON MCORING & DIVING
BEYOND SOFTWARE SOLUTIONSBOUNDTREE MEDICALBROWN, MARISA
CARUSO FORDCATALINA BEVERAGE CO
CATALINA BOATYARD INCCATALINA BROADBAND SOLUTIONSCATALINA EXPRESSCATALINA ISLAND MEDICAL CENTERCATALINA ISLANDER CATALINA YAMAHACO. OF LOS ANGELES SHERIFF’S DEPT.COOK, AMANDA DANGELO CODAPEER, ROSENBLIT & LITVAK,LLPDELTA DENTALDELTA DENTALMO. DION &SONS, INC.
DON MILLER & SONSEDISONEMS SAFETY SERVICES, INCENTENMANN-ROVIN CO,ESG ENGINEERING
ESG ENGINEERINGESG ENGINEERINGESG ENGINEERINGESG ENGINEERINGESG ENGINEERING
ESG ENGINEERINGESG ENGINEERING
FIDELITY SECURITY LIFE INSURANCEFIDELITY SECURITY LIFE INSURANCEFORTIN, KELLY
GARCIA, BETTY JOGRAINGERHINDERLITER, DE LLAMAS & ASSOCIATESHOTEL VETROPOLE LUPO, KARLALINDE GAS & EQUIPMENT INC.LOS ANGELES COUNTY EMSAMANAGED HEALTH NETWORKMATTHEWS INTERNATIONAL CORPORATION M CM A STE 8-CAR RMEFFERT. JOHNMORANII, DUDLEY
MORONES, MARISA
QUADIENT
QUILL CORP
RICOH AMERICAS CORPRICOH USA, INC.
RURIO, LUIS
STANDARD INSURANCE COMPANY
2,41178 STANDARD INSURANCE COMPANY
FUEL - ALL DEPTS
SUPPLIES - WWTP
UNIFORMS
- P/W, SUPPLIES - ALL DEPTS
FREIGHT- ALL DEPTS
SERVICE - HARBORCONTRACT SERVICES - IT
SUPPLIES - FIRE
RETIREE INSURANCE -10/2021
SUPPLIES - GARAGESUPPLIES - ALL DEPTS
SERVICE - HARBOR
INTERNET -ALL DEPTS1ST HALF 12/2021, TRAVEL - ADMIN
EMPLOYEE SCREENING
A2VERT;SING - ALL DEPTS
SUPPLIES - GARAGE
RESrD[NT DEPUtY - 11/2021, WATERFRONT PAT ROL 10/2021
RETIREE INSURANCE - 01/2022
SUPPLIES -PUBLIC WORKSSERVICE - VEHICLES
VOID -MULTI STUB CHECK
DENTAL - 12/2021, 01/2022FUEL -HARBOR
SUPPLIES - PUBLIC WORKS
UTILITIES -206 E. WHITTLEY
SUPPLIES - FIRESUPPLIES - HARBORSERVICE - PUBLIC WORKSSERVICE - PUBLIC WORKSSERVICE - PUBLIC WORKS
SERVICE - PUBLIC WORKSSERVICE - PUBLIC WORKSSERVICE - PUBLIC WORKSSERVICE - PUBLIC WORKS SERVICE - PUBLIC WORKSVOID -MULTI STUB CHECKVISION - 12/2021
LITIGATION COSTSRETIREE INSURANCE
- O1/2D22
SUPPLIES - HARBOR/FIRESERVICE - FINANCE
LODGING - IT
SERVICE - RECREATIONSUPPLIES - HARBOR
RECERTIFICATION
- E. THOMAS
SERVICE - ADMINSUPPLIES - CEMETERY
SUPPLIES -HARBOR/PUBLIC WORKSREIMB 0/P COSTSRETIREE INSURANCE - 12/2D21 REIMB 0/P COSTSPOSTAGE REFILL
SUPPPLIES
- ALL DEPTS
COPIER LEASE - PLANNINGCOPIER LEASE - PLANNING
REIMB 0/P COSTS
VOID’ MULTI STUB CHECK
LIFE INSURANCE - 12/2021, 01/2022
AMOUNT NAME DESCRIPTION
CHECK
NUMBER
3365433655336563365733658
33659336603366133662
3366333664336653366633667
33668
3366933670
3367133672
336733367433675
33676
33677
3367833679336803368133682
3368333684336853368633687
33688
33689
3369033691336923369333694
3369533696336973369833699
337003370133702
3370333704337053370633707
337D8337093371033711
DATE
ISSUED
01/07/2022
01/07/202 201/07/202 20 1/07/2 02 201/07/2022
0 1/07/202201/07/2D2201/07/2022
0 1/07/20220 1/07/20 220 1/07/20 2201/07/20 22
01/07/202201/07/202201/07/2022
01/07/202201/07/202201/07/2 02 201/07/2 02 201/07/2022
01/07/202201/D7/20220 1/07/202 201/07/202201/07/2022
01/07/20220 1/07/202 20 1/07/202 20 1/07/2 02 2
0 1/07/202 20 1/07/20 2 20 1/07/2 02 2
0 1/07/20 2 20 1/07/20 2 20 1/07/20 2 2
0 1/07/202 201/07/20220 1/07/202 201/07/2022
0 1/07/202 20 1/07/20220 1/07/20220 1/07/202 20 1/07/2022 01/07/202 201/07/202 201/07/202201/07/20220 1/07/202 2
01/07)2022
01/07/202201/07/2022
01/07/202201/07/202201/07/202201/07/202201/07/2022
01/07/202 2
7,446.92
S,3S2.092,223.77
600.41
1,617,45
3,380.00
227.32510.26
1,437,00
150.40
2,357.00
1,996.48
25,499.03
63.73 3,7 L7.39
173.79
149,133.68
705.87942.08933.69
13,316.78
378.73362.57
1,556.91
81.28 384.90360.00720,00
4,669.00
360.00
180.00
11,586.78
597.60
8,306.29
2,128.122,771.OS
774.19
257.97
3,916.02
433.44630.00
182.41120.00286.00
964 .98
1,608.15
257.31
440. 25
58.00 1,039.82
383.38
908.90
423.48
200.00
CITY OF AVALON
DECEMBER 27, 2021- JANUARY 7,2022 DISBURSEMENTS
January 18, 2022
CHECK DATE
NUMBER ISSUED AMOUNT NAME DESCRIPTION
33712 01/07/2022 3,385.12 SUPERION, LLC SOFTWARE LEASE - FINANCE33713 01/07/2022 91.99 UNITED SITE SERVICES OF CALIFORNIA SERVICE - HARBOR33714 01/07/2022 - US BANCORP SEVICE CENTER VOID - MULTI STUB CHECK33715 01/07/2022 8,053.18 US BANCORP SEVICE CENTER SEE AnACHED DETAIL33716 01/07/2022 314.04 WEST MARINE PRO SUPPLIES - GARAGE33717 01/07/2022 5,82185 WESTRIDGE ENVIRONMENTAL SERVICES SUPPLIES - WWTP33718 01/07/2022 1,080.30 XEROX CORPORATION COPIER LEASE- ADMIN $ 290,270.90
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID JANUARY 7,2022
January 18, 2022
LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT HERNANDE? 12/8/2021 26.44 CHETS HARDWARE RESTROOM MAINTENANCE PUBLIC WORKS HERNANDEZ 12/8/2021 18.14 CHETS HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/3/2021 54.99 CHETS HARDWARE RESTROOM MAINTENANCE PUBLIC WORKSHERNANDEZ 12/3/2021 5.49 CHEIS HARDWARE RESTROOM MAINTENANCE PUBLIC WORKSHERNANDEZ 12/9/2021 111.35 CHETS HARDWARE SALTWATER MAINTENANCE PUBLIC WORKS HERNANDEZ 12/7/2021 241.67 PEBBLY BEACH BUILDING SUPPLY SALT WATER MAINTENANCE PUBLIC WORKSHERNANDEZ 12/3/2021 58.82 CHETS HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/1/2021 112.10 CHET’S HARDWARE RESTROOM MAINTENANCE PUBLIC WORKSHERNANDEZ 12/3/2021 1427 CHEPS HARDWARE RESTROOM MAINTENANCE PUBLIC WORKSHERNANDEZ 12/10/2021 8.79 CHETS HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 12/6/2021 6078 CHETS HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 11/15/2021 7.56 CHEIS HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKSHERNANDEZ 11/15/2021 10.99 CHET’S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKSHERNANDEZ 11/18/2021 50.55 CHETS HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKSHERNANDE? 11/20/2021 27.46 CHETS HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 11/24/2021 1736 CHET’S HARDWARE RESTROOM MAINTENANCE PUBLIC WORKSHERNANDEZ 11/17/2021 19.83 PEBBLY BEACH BUILDING SUPPLY BUILDING MAINTENANCE PUBLIC WORKSHERNANDE? 11/16/2021 38.49 CHETS HARDWARE RESTROOM MAINTENANCE PUBLIC WORKS HERNANDEZ 11/17/2021 343.33 PEBBLY BEACH BUILDING SUPPLY SALT WATER MAINTENANCE PUBLIC WORKS HERNANDE? 12/9/2021 12.08 CHETS HARDWARE RESTROOM MAINTENANCE PUBLIC WORKS HERNANDEZ 12/8/2021 100.82 CHEIS HARDWARE RESTROOM MAINTENANCE PUBLIC WORKS HERNANDEZ 12/21/2021 21.99 CHEPS HARDWARE MANTENANCE SUPPLIES PUBLIC WORKSHERNANDEZ 12/2/2021 69198 SIMPLE TIRE TIRES PUBLIC WORKS GREENLAW 11/17/2021 180.00 ENGINEERS BD LICENSE RENEWAL PUBLIC WORKSALEGRIA 11/16/2021 37.71 CHET’S HARDWARE MAINTENANCE SUPPLIES FIRE ALEGRIA 11/16/2021 25345 EBAY.COM VEHICLE MAINTENANCE FIREALEGRIA 12/2/2021 54.13 OFFICE DEPOT OFFICE SUPPLIES FIREALEGRIA 12/3/2021 21.38 COSTCO PHOTO CENTER CHRISTMAS CARDS FIREALEGRIA 12/6/2021 120.00 CUT RATE BA1TERIES RADIO BATTERIES FIRE ALEGRIA 12/9/2021 57.45 MARGARITAVILLE TRAVEL EXPENSE FIREALEGRIA 12/9/2021 100.22 SHEARTON UNIVERSAL TRAVEL EXPENSE FIREALEGRIA 12/13/2021 19.01 TACOMASA TRAVEL EXPENSE FIRE ALEGRIA 12/13/2021 460.48 SHEARTON UNIVERSAL LODGING FIREALEGRIA 12/13/2021 129.28 COSTCO MAINTENANCE SUPPLIES FIRE RADDE 11/24/2021 107.85 CYBERYNK IT SERVICE ADMINISTRATIONRADDE 11/24/2021 165.00 SANGOMA IT SERVICE ADMINISTRATIONRADDE 12/3/2021 52.12 VASTCONFERENCE CONFERENCE CALL SERVICE ADMINISTRATION CAMPBELL 11/18/2021 37.00 SENDHUB COMMUNICATIONS HUMAN RESOURCES CAMPBELL 11/18/2021 105.44 AMAZON.COM OFFICE SUPPLIES HUMAN RESOURCESCAMPBELL 11/19/2021 800 SENDHUB COMMUNICATIONS HUMAN RESOURCESCAMPBELL 11/23/2021 50.00 SCPMA:HR MEMBERSHIP HUMAN RESOURCES CAMPBELL 12/9/2021 7.00 SENDHUB COMMUNICATIONS HUMAN RESOURCES HMIELAI< 11/15/2021 178.75 THE HOME DEPOT ELECTRICAL MAINTENANCE PUBLIC WORKS HMIELAK 11/15/2021 (29.30) THE HOME DEPOT CREDIT PUBLIC WORKSHMIELAK 11/15/2021 9.88 CHET’S HARDWARE STICKER SCRAPER PUBLIC WORKS HMIELAK 11/15/2021 15.35 CHEf’S HARDWARE VEHICLE MAINTENANCE PUBLIC WORKSHMIELAK 11/18/2021 242.80 SANITARY FITTINGS FLOAT MAINTENANCE PUBLIC WORKSHMIELAK 11/18/2021 645.21 INTERSTATE PLASTICS FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 11/18/2021 82.59 INTERSTATE PLASTICS FLOAT MAINTENANCE PUBLIC WORKSHMIELAK 11/24/2021 1,69716 INTERSTATE PLASTICS FLOAT MAINTENANCE PUBLIC WORKSHMIELAK 11/24/2021 312.64 SANITARY FITTINGS FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 12/1/2021 285.99 NORTHERN TOOL & EQUIPMENT VEHICLE MAINTENANCE PUBLIC WORKSHMIELAK 12/7/2021 46.18 CHEfS HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 12/6/2021 46.88 CHETS HARDWARE ELECTRICAL MAINTENANCE PUBLIC WORKSHMIELAK 12/3/2021 32.49 AVALON PACK & SHIP STORE FREIGHT PUBLIC WORKSHMIELAK 12/2/2021 7.49 CHET’S HARDWARE FLOAT MAINTENANCE PUBLIC WORKSHMIELAK 12/3/2021 44.29 CHET’S HARDWARE FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 12/2/2021 43.99 CHET’S HARDWARE STREET MAINTENANCE PUBLIC WORKS
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID JANUARY 7,2022
January 18, 2022
LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENTHMIELAK 12/10/2021 268.75 AMERICAN PUBLIC WORKS ASSOCIATION MEMBERSHIP PUBLIC WORKS HMIELAK 12/10/2021 7.47 CHET’S HARDWARE HARBOR MAINTENANCE PUBLIC WORKSHMIELAK 12/13/2021 55.52 CHET’S HARDWARE ELECTRICAL MAINTENANCE PUBLIC WORKSHMIELAK 12/13/2D21 3R.2S CHET’S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS $ 8,053.18 CHECK 33715
CITY OF AVALON CITY COUNCIL
MEETING DATE:
ORIGINATING DEP:
January 18, 2022
Administration
AGENDA ITEM:
CITY MANAGER:
PREPARED BY:
SUBJECT:
Michael Parmer, Assistant City Manager
Consideration of a Planning Commission Resolution Recommending City Council Adoption of the Annual Growth Policy for 2022 RECOMMENDED ACTION(S): Adopt a resolution establishing the City of Avalon’s AnnualGrowth Policy for 2022.
REPORT SUMMARY: Section 9-12.102 of the
the City Council, in conjunction with the Planning
in the preceding ten months, review the effects
additional development upon the City’s natural
amount and type of growth the City will permit in
for growth.
Avalon Municipal Code (AMC) stipulates that
Commission, shall review the growth permitted
and demands of such development and any
resources, and determine, by resolution, the
the succeeding year, as well as City priorities
A summary of loc& development activity during the past year (January through October) has been tabulated and is attached as ‘Exhibit A” to the proposed attached resolution recommending the adoption of the City’s Annual Growth Policy for the year 2022 by the City Council. The summary also includes development activity for November and December as reference.
Southern California Edison (SCE) has notified the City that it is no longer under any stage of water rationing. However, SCE has delayed issuing any new fresh water allocations to those project on their waiting list until further testing of wells and quantity of production could be ascertained. The growth policy being recommended allows the same type of development, but has been modified to provide that almost all require confirmation from SCE that adequate fresh water is available:
• The repair, in-kind replacement, remodeling or enlargement of existing commercial and residential structures: subject to specified conditions; • In-fill projects involving limited new construction and subject to specified conditions;• Residential tract development, if specified conditions can be met; • An ADU or JADU is not allowed in any location within the City unless the water provider indicates there is sufficient water by issuing a water allocation or that no allocation is needed (Avalon Municipal Code § 9-5.605(a)(3)); • Infrastructure projects authorized by the City/Successor Agency;• Projects which the Planning Commission determines will not have growth inducing effects; and
• Projects which are not in-fill in nature or involve existing residential or commercial structures but for which CEQA documents have been adopted and findings made thatexplain why the resulting growth is beneficial to the City and its residents.
A project shall only be required to fall into one of the foregoing categories. The permitted classes of projects are set forth in greater detail in the attached resolution.
The proposed policy does not constitute a project within the meaning of State CEQA Guidelines Section 15378. Specifically, the adoption of the resolution is exempt from CEQA pursuant to Section 15061(b)(3) as CEQA applies only to projects which have the potential for causing asignificant effect on the environment. The proposed policy does not approve any new project, but establishes a policy for allowed growth.
GOAL ALIGNMENT: The proposed resolution is aligned with the City’s 2030 Vision and CityCouncil goals regarding Natural Resources and City Infrastructure.
FISCAL IMPACTS: None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Failure to implement the Avalon Municipal Code mandate and continue to process development applications without the benefit or direction of an annual growth policy.
FOLLOW UP ACTION: Adherence to the growth policy when processing applications for land use entitlements during calendar year 2022.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS:
1. SCE Water Allocation Waitlist
2. City Council Resolution No. 21-3. Planning Commission Resolution No. 21-36
4. Calendar Year 2021 Entitlements Granted
Date Wait New Requested List # Location Remodel Type of Request Received Const Usage (AFY) I/27i2003 El Rancho F.scondido X Vineyard and Resorl 8.81 5/9/2013 W-2 887 Country Club Dr X Canyon appts 48 I.Jnils 8.62 Add a stud’ and hobby room 8/27/2013 W-3 38 Sol Vista X 0.18 larger than 70 s.f. 1122/2014 W-4 501 & 505 Cresent X Ne lee Cream shop & Retail 2.41 II I I F7l)] 4 W—5 13 lower lerrace X Add I lot [nb & Lnunge 0.002 l2/18/20I4 W-6 145 Oli;e St X New 3 Brni House 0.27
1/29/2015 W-7 312 Meiropole X Add a bdrm 0.09
Converting basement to dorm 8/10/2015 V-8 309 Beacon X
.
. 0.15 Ii v I ng
1/20/2017 W-9 326W Whitllev X Add ahdrm 0.09
9/14.2017 W-lO 345 Eucalyptus X Add ahdmi 0.09
9/18/2017 V-l I 383 F Whittley Ave X Add 2 bdrm 0.18
9/192017 V-l2 I Cemetery Rd N New meter on old line 0.45 11/2/2017 W-13 100 Banning Drive X Apartment Comple.\ 10.38 11/9/2017 W-14 ill Crescent X Add comm washer 0.30
9/5/2018 W-I5 100 Falls Canyon Rd N Hospital 3.00
14/2019 WI6 Fornier Field of Dreams X Community Center & Pool 3.73 6/5/2019 W-I7 138 Whittlcy Ave N I bdrm ADU 0.09
7/1/2019 W-l8 126 ManIla Ave X Remodel Existing Duple< 0.18 7/8/2019 W-19 310 E Whittley Ave X Remodel Existing Duplex 0.09 7/12/2019 W-20 336 & 336 1/2 Eucalyptus X Remodel Existing Duplex 0.097/22/2019 W-21 126. 128.130. 132 Hill St X Build 2 new Duplexes 1.08 9/25/2019 NV-fl 117 Vieudelou X Add 2 bdrin ADIJ 0.18
10/22/2019 W-23 Avalon Canyon Rd X Remodel single family house 0.18 1/22/2020 W-24 123 ManIla X Add 2 hdrm 0.181/23/2020 236 Catalina X Build new building with 3 0.72 units. (1)4 brim (2) 2hrm Existing 3 bdrm house on arge
1/24/2020 110 Chimes Tower Rd X lot. Subdivide lot & build new 0.18 2 hdrm house.
3/30/2020 W-27 32 Cabnillo Dr X Add I bdrm 0.09
Demohsh existing 3 bdmi
4/20/2020 %-28 337 Deseanso X duplex and replace with 5 hdrm 0.18 Single Family Residence.
4/23/2020 %-29 23 Pebbly Beach Rd. X Add a restroom 0.14 10/15/2020 W-30 104 Old Reservoir Rd X Add I hose bib 0.0009 8/30/2021 W-31 371 Whittley X Add I bdrm ADU 0.0900
l’Ol’AL. 42.22
RESOLUTION NO. 22-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF AVALON ADOPTING THE
ANNUAL GROWTH POLICY FOR THE YEAR 2022
The City Council of the City of Avalon does determine, find and resolve as follows:Section 1. On December 22, 2021, the City of Avalon Planning Commission conducted a duly noticed public hearing at which time written and oral evidence was considered regarding thedevelopment of a growth resolution for the year 2022. Pursuant to Avalon Municipal Code Section 9-12.101 etseq., the Planning Commission reviewed the growth permitted in the City during the preceding ten months (attached as Exhibit A) and the effects and demands of suchdevelopment and other development on the City’s resources.
Section 2. Exemption from the California Environmental Quality Act. The PlanningCommission has determined that adoption of a Growth Policy is exempt from CEQA under the “General Rule” exemption, Section 15061 (b)(3). The policy is covered by the general rule thatCEQA applies only to projects which have the potential for causing a significant effect on theenvironment. 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.
The proposed 2022 growth policy does not approve any new project, but establishes a policy for allowed growth. Staff is hereby directed to file a Notice of Exemption with the Los AngelesCounty Clerkts Office within five (5) working days of final action.
Section 3. The following facts were reviewed by the Avalon Planning Commission inadopting the recommended Annual Growth Policy and form the findings of fact upon which the Planning Commission adopts this resolution:
a) New commercial construction and resort/vacation residential growth may contribute to the need for additional workforce, which in turn may create demand for additional housing. b) The demand for City services, such as wastewater treatment and saltwater service, public works, and police and fire services has increased without a corresponding increase in thefunding for personnel and related infrastructure to provide these services. c) Southern California Edison (SCE) has notified the City that it is no longer under any stage of water rationing. However, SCE, in an effort to accurately gauge the safe annual yield, has delayed issuing any new fresh water allocations to those project on their waiting listuntil further testing of wells and quantity of production could be ascertained.
Section 4. Based on the foregoing, the Avalon City Council adopts the following growth policies for the year 2022, providing that new development will be permitted only for the following classes of projects:
a) Projects involving existing commercial and residential structures which are to be repaired, replaced in kind, or remodeled or enlarged, provided no additional bedrooms or dwelling units are added to existing residential structures other than inclusionary or density bonus units, and the Southern California Edison Company confirms in writing that water is available to serve the project, if approved by the City. As used herein, a replacement in kind is construction which does not change the prior use, increase the total square footage, or increase the number of units in the replaced structure. This section does not prohibitconsideration and approval of conditional use permits for transient occupancy, subject to the limitations otherwise applicable to such permits.
b) An in-fill project. As used herein, an in4ill project shall mean:
- any residential project which creates five (5) or fewer units (including any bonus density units): or
- any non-recreational/visitor-serving commercial project that increases square footage by less than 50%; or
- any expansion of existing recreational/visitor serving development, not over 5,000 square feet;
and is on a legally conforming parcel, provided that if the project is not categoricallyexempt, then the project proponents can mitigate any adverse environmental impacts, and the Southern California Edison Company confirms in writing that water is available to servethe project if approved by the City. c) Residential tract development of greater than five units may be allowed if the project provides 20% of the units proposed or one unit, whichever is greater, to year-round, nontransient, affordable housing and the Southern California Edison Company confirms in writing that water is available to serve the project, if approved by the City. d) An ADU or JADU is not allowed in any location within the City unless the water provider indicates there is sufficient water by issuing a water allocation or that no allocation isneeded. e) Infrastructure projects authorized under or by the City/Successor Agency. f) Projects which the Planning Commission determines will not have growth inducing effects.
By way of example, such projects would include non-inhabited uses such as industrial warehouses, mechanical, marine, or construction service areas and storage spaces and which do not create the need for additional employees.
g) Projects which are not categorized as in-fill or existing residential or commercial structures for which a Negative Declaration, Mitigated Negative Declaration, or Environmental Impact Report, with or without Mitigation Monitoring Program, is adopted and for which specific findings are made that explain why the resulting growth is beneficial to the City of Avalon and its residents and the Southern California Edison Company confirms in writing that water is available to serve the project, if approved by the City either via the existing safe annual yield or via an additional fresh water resource in accordance with SCE tariffs. h) In any event, projects which have been granted a water allocation or water transfer, the City Council or their designee shall review and determine that water is available, and shall make an additional finding that any allocation or transfer of water for the project by SCE isconsistent with the City’s adopted General Plan and that the allocation or transfer of water for the project is done in a manner that is fair, transparent, and promotes the public health, safety, and welfare.
A project shall only be required to fall into one of the foregoing categories.
PASSED, APPROVED AND ADOPTED this 18th day of January, 2022.
Ayes:
Noes:
Absent:
Abstain:
Anni H. Marshall, Mayor
ATTEST:
Gabrielle Morones, Deputy City Clerk
RESOLUTION NO. 21-36
A RESOLUTION OF THE PLANNING
COMMISSION RECOMMENDING ADOPTION
OF THE CITY OF AVALON ANNUAL
GROWTH POLICY FOR THE YEAR 2022 BY THE
CITY COUNCIL
The Planning Commission of the City of Avalon does determine, find and resolve as follows:
Section 1. On December 22, 2021, the City of Avalon Planning Commission conducted a duly noticed public hearing at which time written and oral evidence was considered regarding the development of a growth resolution for the year 2022. Pursuant to Avalon Municipal Code Section 9-
12.101 et seq., the Planning Commission reviewed the growth permitted in the City during the preceding ten months (attached as Exhibit A) and the effects and demands of such development and other development on the City’s resources.Section 2. Exemption from the California Environmental Quality Act. The Planning Commission has determined that adoption of a Growth Policy is exempt from CEQA under the “General Rule” exemption, Section 15061(b)(3). The policy 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 effecton the environment, the activity is not subject to CEQA. The proposed 2022 growth policy does notapprove any new project, but establishes a policy for allowed growth. Staff is hereby directed to file a Notice of Exemption with the Los Angeles County Clerk’s Office within five (5) working days of final action.Section 3. The following facts were reviewed by the Avalon Planning Commission in adopting the recommended Annual Growth Policy and form the findings of fact upon which the Planning Commissionadopts this resolution:
a) New commercial construction and resort/vacation residential growth may contribute to the need for additional workforce, which in turn may create demand for additional housing. b) The demand for City services, such as wastewater treatment and saltwater service, public works, and police and fire services has increased without a corresponding increase in the funding forpersonnel and related infrastructure to provide these services. c) Southern California Edison (SCE) has notified the City that it is no longer under any stage of water rationing. However, SCE, in an effort to accurately gauge the safe annual yield, has delayed issuing any new fresh water allocations to those project on their waiting list until further testing of wellsand quantity of production could be ascertained.
Section 4. Based on the foregoing, the Avalon Planning Commission adopts Resolution No. 21-36 and recommends the following growth policies for the year 2022, providing that new development will be permitted only for the following classes of projects:
a) Projects involving existing commercial and residential structures which are to be repaired, replaced in kind, or remodeled or enlarged, provided no additional bedrooms or dwelling units are added to existing residential structures other than density bonus units permitted by conditional use permit,and the Southern California Edison Company confirms in writing that water is available to serve the project, if approved by the City. As used herein, a replacement in kind is construction which doesnot change the prior use, increase the total square footage, or increase the number of units in the replaced structure. This section does not prohibit consideration and approval of conditional usepermits for transient occupancy, subject to the limitations otherwise applicable to such permits. b) An in-fill project. As used herein, an in-fill project shall mean:
- any residential project which creates five (5) or fewer units (including any bonus density units); or
- any non-recreational/visitor-serving commercial project that increases square footage by less than 50%; or
- any expansion of existing recreational/visitor serving development, not over 5,000 square feet; and is on a legally conforming parcel, provided that if the project is not categorically exempt, then the project proponents can mitigate any adverse environmental impacts, and the Southern California Edison Company confirms in writing that water is available to serve the project ifapproved by the City. c) Residential tract development of greater than five units may be allowed if the project provides 20% of the units proposed or one unit, whichever is greater, to year-round, non-transient, affordable housing and the Southern California Edison Company confirms in writing that water is available to serve the project, if approved by the City,
d) An ADU or JADU is not allowed in any location within the City unless the water provider indicates there is sufficient water by issuing a water allocation or that no allocation is needed. e) Infrastructure projects authorized under or by the City/Successor Agency. f) Projects which the Planning Commission determines will not have growth inducing effects. By way of example, such projects would include non-inhabited uses such as industrial warehouses, mechanical, marine, or construction service areas and storage spaces and which do not create theneed for additional employees. g) Projects which are not categorized as in-fill or existing residential or commercial structures for which a Negative Declaration, Mitigated Negative Declaration, or Environmental Impact Report, with or without Mitigation Monitoring Program, is adopted and for which specific findings are made that explain why the resulting growth is beneficial to the City of Avalon and its residents and the Southern California Edison Company confirms in writing that water is available to serve the project, if approved by the City either via the existing safe annual yield or via an additional fresh water resource in accordance with SCE tariffs.
h) In any event, projects which have been granted a water allocation or water transfer, the City Council or their designee shall review and determine that water is available, and shall make an additional finding that any allocation or transfer of water for the project by SCE is consistent with the City’s adopted General Plan and that the allocation or transfer of water for the project is done in a manner that is fair, transparent, and promotes the public health, safety, and welfare.
A project shall only be required to fall into one of the foregoing categories.
PASSED, APPROVED AND ADOPTED this 22nd day of December, 2021.
Eric Huart, Planning Commission Chair
ATFEST:
Michael Parmer, Assistant City Manager
Acting Planning Director
CERTIFICATE
I, Rocio De La Cruz, hereby certify that the foregoing Resolution 21-36 was adopted by the Planning Commission of the City of Avalon at a regular meeting held on the 22nd day of December, 2021, by thefollowing vote, to wit:
AYES: Planning Commission Members:
NOES: Planning Commission Members:
ABSENT: Planning Commission Members:ABSTAIN: Planning Commission Members:
Rocio De La Cruz, Administrative Assistant
Exhibit A — Calendar Year 2021 Entitlements Granted
Resolution 4 Date Adopted Location Project Description21-01 1/20/2021 334 Whittley Conditional Use Permit (“CUP”) and Coastal Avenue (upper Development Permit (“COP”) for transient rental use unit)
21-02 1/20/2021 334 Whittley CUP and COP for transient rental use Avenue (lower
unit)
21-03 1/20/2021 74 Gaviota, CUP and CDP for transient rental use Building 18
21-04 1/20/2021 City of Avalon Avalon Municipal Code (“AMC”) amendments to Article 6 of ChapterS of Title 9 pertaining to accessory dwellingunits 21-04A 2/17/2021 39 Playa Awl CUP and COP for transient rental use 21-05 1/20/2021 219 Whittley Transient rental CUP revocation Avenue
21-06 1/20/2021 323 Beacon Transient rental CUP revocation Street
21-07 1/20/2021 360 Clemente Transient rental CUP revocation Avenue, #A16
21-08 1/20/2021 4 Camino de Transient rental CUP revocation (Planning Commission Flores, #49 voted against revocation following conditions are met) 21-09 1/20/2021 57 Gaviota Transient rental CUP revocation21-10 1/20/2021 59 Playa Azul Transient rental CUP revocation21-11 3/17/2021 1 Casino Way Site plan to remodel an existing space within the Catalina Casino
21-12 3/17/2021 125 Metropole Site plan to remodel 26 guest rooms, corridors, and Avenue lobby at the Catalina Island Inn
21-13 4/21/2021 124 Hiawatha, Transient rental license and COP #2
21-14 4/21/2021 220 Crescent CUP, site plan, and COP to convert a clothing store into Avenue an ice cream shop
21-15 4/21/2021 104 Clarissa CUP, site plan, and CDP to convert a former take-out Avenue restaurant into a donut shop
21-16 4/21/2021 303 Crescent Transient rental license and COP Avenue
21-17 5/19/2021 54 Playa Azul Transient rental license and COP 21-18 5/19/2021 309 Beacon Site plan for the exterior and interior renovation of an Street existing affordable housing building (14 units) at the Beacon Hill Apartments
21-19 5/19/2021 234 Bird Park Site Plan for the exterior and interior renovation of an Road existing affordable housing building (24 units) at the Bird Park Apartments
21-20 6/16/2021 208 Claressa Transient rental license and CDP Avenue
21-21 7/21/2021 613 Crescent Transient rental license and COP to convert an existing Avenue apartment (Riviera Apartment) on the second floor above the Pancake Cottage restaurant into a residential apartment
21-22 7/21/2021 163 Crescent Transient rental license and COP to convert one of the Avenue existing second floor Spa Suites into a residential apartment located within the Island Spa
21-23 7/21/2021 City of Avalon Amend the Avalon Municipal Code 34.300 et seq to not establish a minimum number of night for the transient
rentals and establish fines and penalties for illegal
transient rentals
21-24 8/25/2021 316 ManIla Transient rental license and CDP Avenue
21-25 8/25/2021 346 Sumner Transient rental license and CDP Avenue
21-26 8/25/2021 114 Catalina CUP, site plan, and CDP to renovate an existing vacant Avenue commercial space into a fresh squeezed lemonade, roasted nuts, and shaved ice business (Totally Nuts &Company) 21-27 8/25/2021 318 Eucalyptus Site plan, setback variance, and CDP to convert an Avenue existing one (1) story, two (2) bedroom, one (1) bathroom single family residence into a two (2) storyproperty with the same number of bedrooms, add two (2) bathrooms, add second floor and rooftop decks, and
an autoette parking space
21-28 8/25/2021 151/153 Olive CUP, site plan, and COP to construct a new two story Street duplex. Unit 1 will contain three (3) bedrooms, two-anda-half (25) baths, and a garage. Unit 2 will contain three (3) bedrooms, two-and-a-half (2.5) bathrooms, and a
garage
21-29 9/22/2021 356 Metropole Transient rental license and CDP Avenue
21-30 9/22/2021 225 Metropole Site plan, CUP, and CDP to add a multipurpose room to Avenue an existing structure and construct a bank of steel containers for storage, add 4 off-street autoette parkingstalls in a vacant lot 21-31 10/20/2021 104 Clarissa Granting and approving a sign variance to allow the Avenue additional placement of a sign
21-32 11/17/2021 208 Mar de Transient rental license and CUP Cortez, Unit A
21-33 11/1 7/2 021 208 Mar de Transient rental license and CUP Cortez, Unit B
21-34 12/22/2021 2 Casino Way CUP, revised site plan, and height variance to construct a café on the existing fuel dock. Second addendum to the
2009 initial study and negative declaration
21-35 12/22/2021 212 Claressa Site plon to remodel a three-story property. The first Avenue floor will not include any additional square footage as the proposal is to only move interior walls. The second story proposes to add 170 square feet of living space and an additional 180 square feet for a deck1 both within the existing footprint. The third floor proposes to add a
bathroom, 190 square feet of living space, and a 110
square foot deck within the existing footprint.
*projects denoted in italics in November or December don’t qualify as impermissible growth under the 2021 growth policy
CITY OF AVALON CITY COUNCIL
MEETING DATE: January 18, 2022 ADENDA ITEM:
ORIGINATING DEl’: Harbor Department CITY MANAGER:
PREPARED BY: Orne Carstarphen. Harbor Master
SUBJECT: Repair & Maintenance of City Floats 2 & 3 Located at the Cabrillo Mole
RECOMMENDED ACTION(S): Authorize the City Manager or their designee to negotiate aprocurement contract with Al Larson Boat Shop, a sole source vender, for the Rehabilitation of City Floats 2 & 3 for a sum not-to-exceed $249,999.00.
REPORT SUMMARY: On December 17, 2019, the City Council designated Al Larson Boat Shop as a sole source vendor as defined in the Avalon Municipal Code to contract for repairand maintenance on certain City floats.
Mole Floats 2 & 3 are in need of rehabilitation to extend their useful life and provide safe facilities for the users. The rehabilitation is within the scope of work that is routinely and safely provided by Al Larson Boat Shop. In 2018, rehabilitation of Float 1 was completed by thisprocurement method. The proposed rehabilitation of Floats 2 and 3 will be the completion of the planned rehabilitation of the ferry terminal floats. Timing of the work is sensitive to the cross channel carrier schedules and opportunities are very limited to remove the floats for anextended duration. Additionally, schedules are also sensitive to the capacity of the vendor to complete the work, As such, City Staff contacted the cross channel carriers that primarily use these floats and confirmed the Catalina Express and Catalina Flyer will be doing maintenance on their vessels through January and February 2022. According to representatives from bothcompanies, the proposed January and February timeline is convenient due to the anticipateddiminished demand on these floats. As a contingency, Float 4 may be used for carrier landings when necessary.
The Cabrillo Mole Ferry Terminal Rehabilitation (Phase II) may provide a major portion of thefunding for the rehabilitation of Floats 2 & 3. The rehabilitation of the ferry terminal floats was included in the project scope under the grant agreement. Under the Federal Transit Administration’s procurement policies, grant recipients may use simplified procurement methods for contracts under $250,000. Staff is pursuing this as a funding source, but the logistics of federal procurements can sometimes be difficult for contracts of this type.
Otherwise the cross channel carrier fee increase dedicated to capital projects is intended to fund projects on a priority basis such as the float rehabilitation.
FISCAL IMPACTS: Float Rehabilitation is part of our Capital Improvement projects outlined in the Fiscal Year 2021-22 Budget (Project #207009). Approximately $260,000 is available in fund 10470-6504 for this project.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: By not following the recommended project request, the City Floats 2 & 3 will not be repaired or maintained asnecessary.FOLLOW UP ACTION: Issue the contract to Al Larson Boat Shop for the Repairs &Maintenance of City Floats 2 & 3.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly posted on the agenda.
ATTACHMENTS: Al Larson Boat Shop proposal, December 17, 2019 Staff Report, and December 17, 2019 Minutes.
AL LARSON BOAT SHOP
lIMb SEASIDE AVENI E I ERMINAL ISLAND. CA 91)731
(310) 5(4—41 50
I3\ (310) 832-7310
l—I1aii j4jckaIIIIarsonboai.com
November 16, 2021
Ome J. CarstarphenFlarhor Master
Avalon Harbor DepartmentP.O. Box 1085
Avalon, CA 90704
o rric1äcityofavaIon.co vi
Subject Dry docking and repairs to Mole floats No. 2 & No. 3 Mr. Carstarphen,
Al Larson Boat Shop is pleased to quote the following costs to dry dock and repair the floats as outlined below. All costs are estimated at a straight time labor rate. All paint products and anodes will be provided by the shipyard. City of Avalon will deliver floats to our location in Fish Harbor, and return floats to Avalon upon completion of repairs.
Any work not quoted is considered additional. Pricing does not include any taxes, if applicable. The City will arrange for the removal of all ramps and gangways prior to repairs.
Mole float No. 2
1. Provide labor and equipment to set necessary blocking, haul and launch vessel on marine railways. $ 3,852.00
a. Lay Days (lay days are charged for each day the vessel is out of the water, less weekends and holidays). Rate is
$125.00! per day for 10 days. $ 1,250.00
2. Provide labor and equipment to remove the existing
wooden/fiberglass decking from the vessel. Hydro blast (3000 psi) 1 the decking to remove all loose paint. Reinstall existing decking upon completion of the sand blasting and painting of the float.
Recoat with new non-skid. $17,200.00
3. Provide labor, materials and equipment to hydro blast the entire float to remove all marine growth and dirt. $ 4,250.00
4. Provide labor, materials and equipment to commercial sand blast the entire float removing all existing paint coating, rust and contaminants. Apply a 4 coat paint system to the underwater hulland a 3 coat paint system to the remainder of the float. $69,980.00
5. Paint the perimeter of the float in red safety paint. $ 2,250.00
6. Provide the services of a subcontractor to take “ultrasonic” thickness readings to the underwater portion of the float (Total of 150 readings). $ 1,750.00
7. Provide labor and material to remove existing anodes and install new stainless steel studs and new “M-26” zinc anodes. $ 3,768.00
8. Provide labor and material to install new attachments for “seal netting”. Install new plastic netting as directed to retard seal access to the float. $ 3,860.00
9. Provide labor and material to repair exiting hinge assembly between floats 2 and 3. $ 4,752.00
10. Provide labor and materials to repair damaged welds. Install additional support framing as necessary. Estimate only $ 9,880.00
11. Provide one new aluminum “Freeman” access hatch. $ 1,650.0012. Labor rate for any additional repairs (per hour). $ 82.00 Mole float No. 3
2 1. Provide labor and equipment to set necessary blocking, haul and launch vessel on marine railways. $ 3,852.00
a. Lay Days (lay days are charged for each day the vessel is out of the water, less weekends and holidays). Rate is
$125.O0/ per day for 10 days. $ 1,250.00
2. Provide labor and equipment to remove the existing
wooden/fiberglass decking from the vessel. Hydro blast (3000 psi)the decking to remove all loose paint. Reinstall existing decking upon completion of the sand blasting and painting of the float.
Recoat with new non-skid. $17,200.00
3. Provide labor, materials and equipment to hydro blast the entire float to remove all marine growth and dirt. $ 4,250.00
4. Provide labor, materials and equipment to commercial sand blast the entire float, removing all existing paint coating, rust and contaminants. Apply a 4 coat paint system to the underwater hulland a 3 coat paint system to the remainder of the float. $69,980.00
5. Paint the perimeter of the float in red safety paint. $ 1,976.006. Provide the services of a subcontractor to take “ultrasonic” thickness readings to the underwater portion of the float (Total of 150 readings). $ 1,750.00
7. Provide labor and material to remove existing anodes and install new stainless steel studs and new “M-26” zinc anodes. $ 3,768.00
8. Provide labor and material to install new attachments for “seal netting”. Install new plastic netting as directed to retard seal access to the float. $ 3,860.00
9. Provide labor and materials to repair damaged welds. Install additional support framing as necessary. Estimate only $ 9,880.00
10. Provide one new aluminum “Freeman” access hatch. $ 1,650.0011. Labor rate for any additional repairs (per hour). $ 82.00 j
Thank you for this opportunity to provide current pricing for this project.
It you have any questions, please call me at (310) 514-4150.
Yours trulyJack Wall
4 CITY OF AVALON CITY COUNCIL
MEETING DATE: December 17, 2019 ADENDA ITEM:
ORIGINATING DEP: Harbor Department CITY MANAGER:
PREPARED BY: JJ Poindexter, Harbor Master
SUBJECT: Designate Al Larson Boat Shop as a Sole Source Vendor RECOMMENDED ACTION(S): Authorize the Harbor Master to designate Al Larson Boat Shop as a sole source vendor as defined in the Avalon Municipal Code to contract repair and maintenance on certain City floats.
REPORT SUMMARY: The City-owned and maintained public floats present particular challenges when it comes time to safely haul them out of the water for repairs or maintenance.
Additionally, due to the size, width and weight of the City floats! transport off of the Island to mainland facilities is required.
Al Larson Boat Shop uses a unique rail system for hauling floats and vessels out of the water.
The vessel, or float, is ‘floated” onto a platform, blocked and secured, and then the entire platform is winched up the rails to its final dry dock position. This is a safer, more efficient and cost-effective way to haul the City’s floats out of the water.
According to the AMC Sec.3-4.111(b) Sole Source Vendors, “When there is only one source that provides the necessary services, goods and equipment to ensure compatibility with existing City services, goods or equipment, or the services, goods or equipment are proprietary in nature, the City may procure the goods or services from the sole source.” It is, therefore, Staff’s recommendation that Al Larson Boat Shop be utilized as a Sole Source Vendor for maintenance and repair of the City’s floats due to their experience and ability to safely and efficiently provide the requested services.
FISCAL IMPACTS: Unknown.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The Harbor Master will continue to utilize the RFP process for City floats maintenance and repairs.
FOLLOW UP ACTION: Depending on City Council action, schedule float maintenance and repairs with Al Larson Boat Shop going forward, or continue to use the City’s REP process for float maintenance and repairs.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly posted on the agenda.
ATTACHMENTS: None.
CITY COUNCILIHOUSING AUTHORITYISUCESSOR AGENCY MINUTES
DECEMBER 17, 2019PAGE 2
5. Repair & Maintenance of City’s Pier End Float
Authorized the Harbor Master to accept the bid offer of Al Larson’s Boat Shop to repair the City’s Pier End Float for a not-to-exceed sum of $130,000.00.
F6. Designate Al Larson Boat Shop as a Sole Source Vendor 1 Authorized the Harbor Master to designate Al Larson Boat Shop as a sole source J L vendor as defined in the Avalon Municipal Code to contract repair and maintenance on certain City floats. J
7. 2020 Waterside Permit Renewals
Authorized the Harbor Master to renew the presented list of Waterside Permits for 2020.
PULLED ITEMS
***The following item on the Consent Calendar was the City of Avalon CityCouncil acting as the Housing Authority.
8. Housing Successor Agency Annual Report for Fiscal Year 2018-19 Adopted Resolution HA 19-02 of the Housing Authority of the City of Avalon approving a Housing Successor Agency Annual Report for Fiscal Year 2018- 2019. Motion made by Cinde Cassidy, seconded by Oley Olsen. (All Ayes)***The following item on the Consent Calendar was the City of Avalon City Council acting as Successor Agency to the ACIA.***
9. Recognized Obligation Payment Schedule (ROPS) 20-2 1 and Successor Agency Administrative Budget for Fiscal Year 2020-21
Adopted Resolution SA 19-69 of the Successor Agency to the Avalon Community Improvement Agency Approving a Recognized Obligation PaymentSchedule 2020-2021 and Successor Agency Administrative Budget for Fiscal Year 2020-2021. Motion made by Oley Olsen, seconded by Cinde Cassidy. (AllAyes)***The following item on the Consent Calendar was the City of Avalon City Council acting as Successor Agency to the ACIA and the Housing Authority.***
10. Renewal Agreement with RSG, Inc. for FY2020-21 Successor Agency and Housing Authority Consulting Services
Authorized the City Manager/Agency Director to enter into a contract with RSG, Inc., to provide Successor Agency and Housing Authority consulting services for
CITY OF AVALON CITY COUNCIL
MEETING DATE: January 18, 2022 AGENDA ITEM:
ORIGINATING DEP: Administration CITY MANAGER:________
PREPARED BY: Devin Hart, Administrative Analyst
Denise Radde, City Manager
SUBJECT: Fifth Amendment to the Franchise Lease Agreement between the City of Avalon and CR&R, Inc.
RECOMMENDED ACTION(S): Authorize the City Manager to execute the Fifth Amendment to the Franchise and Lease Agreement between the City of Avalon and CR&R, Inc.
REPORT SUMMARY: During the January 4, 2022 City Council meeting, members of the CityCouncil requested clarification and codification of specific information regarding the fifth amendment to the Franchise Lease Agreement (‘Amendment”) between the City of Avalon andCR&R, Inc. (“CR&R”). City Staff was directed to answer specific questions regarding CR&R and City operations and procedures and bring this item back at the next regular City Council meeting.
City Council requested Staff provide in writing in the Staff Report and/or amendment:
1. What happens if the City gets the waiver for implementation of AB 1383? Per Section 44.8 of the Amendment, “Meet and Confer”:
In the event that City becomes eligible for a City-wide exemption from the requirements of SB 1383 at any time during the term of this agreement, City and Contractor shall meetand confer to evaluate potential changes to Organic Waste service and resulting cost reductions. Such changes and reductions shall be incorporated into an amendment tothis Agreement and provided to the City Council for approval.
Additionally, per Section 6.6.5.5 #19 of the Amendment:
If the City receives a City-wide exemption from the requirements of SB 1383 on or before June 30, 2022, it may terminate this Fifth Amendment with written notice to Company. In such event, the Fifth Amendment shall be null and void.
2. Who decides the fines that may be imposed for non-compliance of AB 1383 for residents and businesses?
Fines are established by the Avalon Municipal Code (AMC) Title 6, Chapter 2 entitled “Solid Waste Collection.” Specifically, Section 6-2.133. Violation-Penalties, outlines the City’s authorityand process in issuance of a Notice of Violation:
6-2.133. Violation—Penalties.
(A) Violation of any provision of this chapter shall constitute grounds for issuance of a Notice of Violation and assessment of a fine by an enforcement officer Enforcement actions under this chapter are issuance of an administrative citation and assessment of a fine. The procedures set forth in Chapter 1-9 of the Avalon Municipal Code shall governthe imposition, enforcement, collection, and review of administrative citations issued toenforce this chapter and any rule or regulation adopted pursuant to this chapter, exceptas otherwise indicated in this chapter (8) City may seek all other remedies allowed by law, including civil action or prosecution for an alleged misdemeanor or infraction. City may pursue civil actions in the California courts to seek recovery of unpaid administrative citations.(C) Penalty amounts for violations of Sections 6-2.128 to 6-2.132 are set forth inSection 1-9.03.
3. Who is responsible to ensure compliance of AR 1383?
Per State law, the standards established by AR 1383 were integrated into the AMC by OrdinanceNo. 1204-21 on December 7, 2021. Per the AMC, § 6-2132. Inspections and Investigations:
(A) City representatives and/or its designated entity, including designees are authorized to conduct inspections and investigations, at random or otherwise, of anycollection Container, collection vehicle loads, or transfer, processing, or disposal facility for materials collected from Generators, or source separated materials to confirm compliance with this chapter by Organic Waste Generators, Commercial Businesses (including Multi-Family Residential Dwellings), property owners, Commercial Edible Food Generators, self-haulers, hauler, Food Recovery Service, and Food RecoveryOrganizations, subject to applicable laws. This Section does not allow the City to enter the interior of a private residential property for inspection.(B) The regulated entity shall provide or arrange for access during all Inspections (with the exception of residential property interiors) and shall cooperate with the City’semployee or its designee during such inspections and investigations. Such inspectionsand investigations may include confirmation of proper placement of materials in Containers, Edible Food recovery activities, records, or any other requirement described herein. Failure to provide or arrange for (0 access to an entitys Premises; or (ii) access to records for any inspection or investigation is a violation of this chapter and may result in penalties described in § 6-2.133.
(C) Any records obtained by the City during its inspections and other reviews shall be subject to the requirements and applicable disclosure exemptions of the Public Records Act as set forth in Government Code § 6250 et seq. (D) City representatives or its designee are authorized to conduct any inspections or other investigations as reasonably necessary to further the goals of this chapter, subject to applicable laws.
(E) City shall receive written complaints from persons regarding an entity that may be potentially non-compliant with SB 1383 Regulations, including receipt of anonymous complaints. Contractors shall relay to City all written complaints they receive concerning acts or omissions of themselves or another entity that is potentially non-compliant with SB 1383 Regulations, including anonymous complaints.
Per this section of the AMC, City representatives would include but not be limited to our Code Enforcement Officers. Additionally, the City designee(s) include members of CR&R staff.
4. What are the fines?
Section 1-903 Cd) of the AMC assesses fines as follows:
[jFines shall be assessed in the amounts specified by the Avalon Municipal Code, Resolutions of the City Council, or where no amount is specifically identified in the A va/on Municipal Code or Resolution, the fines are as follows:
Øj.A fine not exceeding $100 for a first violation:
L?1.A fine not exceeding $200 for a second violation of the same provision or permit within one year from the date of the first violation:
[A fine not exceeding $500 for each additional violation of the same ordinance or permit within one year from the date of the first violation.
5. How does the proposed 24/7 system work? Who will be monitoring, in charge of clean up and when will the program begin?
Section 13 of the amendment identifies a Public Recycling Depot. Per the Amendment:
Public Recycling Depot. In lieu of providing twice weekly collection seivices, Companyshall establish a public recycling depot located at [insert address] where anyone can selfhaul and deposit solid waste, Recyclable Materials and Organic Waste 24 hours a day, 7 days a week, without charge. The City Manager may approve or direct adjustments tothe hours of operation with written notice to Company.
The exact details associated with implementation of this aspect of the Amendment remains to be determined. Upon execution of the Amendment. CR&R and City Staff will work to determine an appropriate location and develop operating policies and procedures. The operations policiesand procedures will be provided to City Council before this aspect of the amendment is implemented.
6. Further define the terms for dissolving this amendment if a waiver is obtained. Meet and Confer vs termination.
City Staff are working diligently, in cooperation with CR&R, to submit a waiver application toCalRecycle from the organic waste collection requirements of SB 1383. The proposed Amendment provides two options should a waiver be obtained:
1. Termination of the amendment if a waiver is received before June 30, 2022, or
2. An option to meet and confer with CR&R to renegotiate the Amendment.
The option to meet and confer versus a termination is established to provide CR&R and the City the ability to assess operations and procedures that may be at various stages of implementation at the time a waiver is received. Depending on the City Staff and CR&R would determine the best path to move forward considering what funds may have been expended by CR&R to date.
Any negotiation change to the Amendment would be provided to City Council for their review and formal approval.
Additionally, the City Council expressed concern that the City would be paying more money for ess services; however, CR&R’s overall services are increasing. Though the number of trips seems to be decreasing from two a week to one a week, in reality, the picks will triple as CR&R will send separate trucks for organics, recycling and trash.
GOAL ALIGNMENT: City infrastructure.
FISCAL IMPACTS: Currently, the Company Service Fee (Compensation) is in the annual amount of one-million-eight-hundred-forty-thousand dollars ($1,840,000). The cost ofcompliance to implement SB 1383 will increase the total compensation by two-hundred-seventysix-thousand-three-hundred-three dollars ($276,303). The costs include an additional truck andcrew (at 50 hours) and additional residential carts, commercial plastic bins, and compactor andservice bodies to ship recyclable. Residential kitchen pails for organics will be provided byCR&R, Inc. at no additional cost.
The anticipated cost increases were factored in with the Solid Waste service fees for five years ending June 30, 2026 and adopted by City Council at its regular meeting on June 1, 2021.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Chapter 12 of Title 14, Division 7 of the California Code of Regulations (“CCR”) requires the City of Avalon adopt an ordinance of similarly enforceable mechanism by January 1, 2022. While the City adopted theordinance at its December 7, 2021 City Council meeting, if the City Council does not adopt theproposed Fifth Amendment to the Agreement, the City would be out of compliance for enforcingSB 1383 and could be subject to enforcement actions by CalRecycle (the regulatory authority toachieve the organic waste disposal reduction targets), including administrative penalties against the City of up to $10,000 per day.
FOLLOW UP ACTION: Notify CR&R, Inc. of City Council’s decision.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. January4, 2021 Staff Report
2. January 4, 2021 Minutes
3. Fifth Amendment to the Franchise and Lease Agreement
4. Ordinance Amending Chapter 6-2 of the Avalon Municipal Code relating to Solid Waste C 011 ectio n
5. Avalon Municipal Code Sections:
a. 1-9.03 Authorityb. 1-9.04 Payment and Collection of Finesc. 1-9.05 Failure to Pay Administrative Fines
CITY OF AVALON CITY COUNCIL
MEETING DATE: January 4, 2022 AGENDA ITEM:
ORIGINATING DEP: Administration CITY MANAGER:
PREPARED BY: Michael Parmer, Assistant City Manager
SUBJECT: Fifth Amendment to the Franchise Lease Agreement between the City of Avalon and CR&R, Inc.
RECOMMENDED ACTION(S): Authorize the City Manager to execute the Fifth Amendment to the Franchise and Lease Agreement between the City of Avalon and CR&R, Inc.
REPORT SUMMARY: On March 1, 2013, the City of Avalon (City”) entered into a ten-year Franchise and Lease Agreement (“Agreement”) with CR&R, Inc. (CR&R”) for solid wastehandling and collection services. The Agreement was subsequently amended on June 18, 2013(‘First Amendment”), on June 3, 2014 (“Second Amendment”), on June 2, 2015 (“Third Amendment”), and on May 18, 2016 (“Fourth Amendment”). The full Agreement ends on June 30, 2023 and has the option for two additional five-year periods (the “First Extension” and“Second Extension”). The extensions take effect automatically on expiration of the Initial Termor First Extension provided each party has not provided the other with at least a one-year written notice to not renew.
A Fifth Amendment was negotiated between the City and CR&R to comply with Senate Bill (“SB”) 1383 (Lara, Chapter 395, Statutes of 2016). In 2016, Governor Brown signed into law SB 1383, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants (‘SLCP”) in various sectors of California’s economy, includingmethane emissions created by disposal of organic materials. SB 1383 establishes targets toachieve a 50 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75 percent reduction by 2025. In addition, not less than 20 percent ofcurrently disposed edible food must be recovered for human consumption.To implement SB 1383, the California Department of Resources Recycling and Recovery(CalRecycle) adopted regulations that mandate cities and counties to:
• Provide organic waste, including food waste, collection services to all residents and businesses
• Develop and adopt an enforcement mechanism or ordinance by January 2022• Establish an edible food recovery program• Update the City’s procurement policy to purchase recycled content paper and recycled organic waste products (e.g., compost, mulch, and renewable natural gas) at a volume of0.08 tons/resident • Provide outreach and education for generators, haulers, facilities, edible food recovery organizations, and municipal departments
• Plan and secure access for recycling and edible food recovery capacity • Monitor compliance and conduct enforcement
• Maintain accurate compliance records
Following negotiations, the following are a list of substantial, notable changes to the Agreement’s Fifth Amendment:
Definitions
Container
This definition was added to define an approved container for disposal and storage until collection of solid waste, organics, or recyclable material and includes a cart, bin, or debris box.
Food-Soiled Paper
Added a definition for compostable paper materials that has come in contact with food or liquid.
Food Waste
Added a definition for source separated food scraps and food-soiled paper (of which, food waste is a subset of organic materials).
Generator
Added a definition to define a person who produces solid waste! recyclable materials, or organic waste.
Hauler
Added a definition to clarify CR&R, Inc. as a hauler.
Organic Waste
Added a definition for organic waste as a solid waste containing material originated from living organisms and their metabolic waste products including, but not limited to, Food Waste, Green Waste, yard trimmings, organic textiles and carpets, lumber, wood, paper products, printing andwriting paper, manure, biosolids. digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
Organic Waste Processing Facility
Added a definition for a facility used by CR&R for handling! processing, and preparing collected organic waste for marketing.
Prohibited Container Contaminants
Added a definition that aligns the with 14 CCR Section 18982(a)(55) regarding prohibited container contaminants.Collection Services of Company
Container Coloring (Section 4.1.1) Labeling (Section 4.1.2) Revised the solid waste container requirement to meet the coloring and labeling requirements of the 14 California Code of Regulations (‘CCR”) Section 18984.7 and 18984.8 for the solid waste, recycling, and organic containers. Labeling requirements include graphic examples of materials accepted by the containers.Solid Waste Collection Single-Family Residence Service
Amends single-family residence service from twice per week to once per week and as needed on an on-call basis.
Multiple-Family Dwelling Service
Amends multiple-family residence service from twice per week to once per week and as needed on an on-call basis.
Recycling
Residential and Commercial Recycling
These sections were revised to only collect and transport unsorted recyclables and ship to the mainland of California for recycling. If recyclables and solid waste is comingled andcontaminated, CR&R reserves the ability to either no collect the material in the solid waste cartor collect the materials and charge the customer for extra disposal costs.
The Material Recovery Facility will not be utilized as the requirements of complying with SB 1383 include source separation of recyclables, organic waste (green and food), and non-divertible solid waste.Construction And Demolition Debris
This section was revised to include all construction and demolition debris be shipped to the mainland of California for processing.
Green Waste
The subheading and subsections following was revised from ‘Green Waste’ to ‘Organic Waste.” Residential and Commercial Organic Waste Collection
This section was revised to replace “Green Waste” with “Organic Waste and added that Organic Waste will go directly into the composting grinder in the City. Recovered Organic Waste will be used as compost or fertilizer and not alternative daily cover (unless the City receives diversion credit).
Non-collection due to contamination
Revised the section to add that CR&R may collect contaminated Organic Waste as Solid Waste and charge the customer for extra disposal costs.
Meet and confer
This was added as a new section, requiring the City and CR&R meet and confer if the City becomes eligible for an exemption of the requirement of the SB 1383 regulations.CalRecycle is currently accepting applications for waivers and exemptions from some or all of the regulations for jurisdictions that meet certain requirements. Waivers are granted for low population. elevation, or rural jurisdictions. For the City of Avalon, it can apply for a waiver, and is currently pursuing one, from the organic waste collection requirements if it demonstrates that the following apply:
Low-Population Waivers for Cities that Provide Solid Waste Collection Services:
o The jurisdiction disposed less than 5,000 tons of solid waste in 2014 as reported in the Disposal Reporting System.
o The jurisdiction has a total population of less than 7,500 people.
Currently, CalRecycle records indicate that Avalon exceeds the 5,000 ton threshold. However, this appears to be an anomaly as the City is generally below this threshold, and the City and CR&R hope to get this re-characterized or otherwise acknowledged.
Generator Waivers
A new section was added for multiple-family dwelling and commercial customers to apply for a de minimis and physical space constraint waivers as per 14 CCR Section 1898411. For de minimis waivers, multiple-family dwelling and commercial customers can apply if one of theconditions are met:
• the total solid waste collection service is two or more cubic yards per week and Recyclable Materials or Organic Waste is less than twenty gallons per week of the total waste • the solid waste collection service is less than two cubic yards per week and Recyclable Materials or Organic Waste is less than ten gallons per week, per applicable container, of the total waste
A physical space waiver may be granted to multiple-family dwelling and commercial customers if they, or its property owner, provides documentation demonstrating that the premise lacks adequate space for Recyclable Materials or Organic Waste containers.Organic Waste Recovery Education and Outreach A new section was added to the Agreement for CR&R to provide organic waste recovery education and outreach. This includes education information on properly separating materials, Organic Waste prevention, on-site recycling, composting, methane reduction benefits, how to recycle Organic Waste, approved haulers, public health and environmental impacts associated with Iandfilling Organic Waste, self-haul requirements, and edible food donation.
A new subsection was added giving CR&R the option of establishing a public recycling depot for self-haul and depositing of solid waste, recyclable materials, and organic waste, 24 hours a day,7 days a week, without charge.
Additionally, a new subsection was added to establish a contamination minimization program, and requiring CR&R to educate customers (the public) on acceptable and non-acceptable materials, monitor contents of Collection Containers for residential, multiple-family dwelling, and commercial customers and conduct annual hauler route reviews to visually inspect contents ofCollection Containers. CR&R will produce written or electronic records and documentation of inspections and maintain a database of SB 1383-related non-compliance incidents andinvestigations.
GOAL ALIGNMENT: City infrastructure.
FISCAL IMPACTS: Currently, the Company Service Fee (Compensation) is in the annual amount of one-million-eight-hundred-forty-thousand dollars ($1,840,000). The cost ofcompliance to implement SB 1383 will increase the total compensation by two-hundred-seventysix-thousand-three-hundred4hree dollars ($276,303). The costs include an additional truck andcrew (at 50 hours) and additional residential carts, commercial plastic bins, and compactor andservice bodies to ship recyclable. Residential kitchen pails for organics will be provided by CR&R, Inc. at no additional cost.
The anticipated cost increases were factored in with the Solid Waste service fees for five yearsending June 30, 2026 and adopted by City Council at its regular meeting on June 1, 2021.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Chapter 12 of Title 14, Division 7 of the California Code of Regulations (‘CCR”) requires the City of Avalon adopt an ordinance of similarly enforceable mechanism by January 1, 2022. While the City adopted theordinance at its December 7, 2021 City Council meeting, if the City Council does not adopt the proposed Fifth Amendment to the Agreement, the City would be out of compliance for enforcing SB 1383 and could be subject to enforcement actions by CalRecycle (the regulatory authority to achieve the organic waste disposal reduction targets), including administrative penalties against the City of up to $10,000 per day.
FOLLOW UP ACTION: Notify CR&R. Inc. of City Council’s decision.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. Fifth Amendment to the Franchise and Lease Agreement
2. Ordinance Amending Chapter 6-2 of the Avalon Municipal Code relating to Solid Waste C 01 lectio n
3. CR&R, Inc. Franchise and Lease Agreement with Amendments 1-4
CITY COUNCIL MINUTES
JANUARY 4, 2022
PAGE 3
GENERAL BUSINESS8. Fifth Amendment to the Franchise Lease Agreement between the City of Avalon and CR&R, Inc.
Members of the City Council requested clarification and codification of specificinformation regarding the fifth amendment to the Franchise Lease Agreementbetween the City of Avalon and CR&R, Inc. (“CR&R”). City Staff was directed toanswer specific questions regarding CR&R and City operations and proceduresand bring this item back at the next regular City Council meeting.
9. Discussion on Establishing Minimum Number of Nights for Transient Rentals There was no consensus to establish an annual minimum number of nights fortransient rentals. City Council directed Staff to consider increasing the business license fee for transient rentals for the next Fiscal Year 2022-2023 Fee Schedule.
10. Request for Proposal for Snack Bar Concessions at Joe Machado Field At the request of a member of City Council, Staff was directed to bring this item back for further discussion. The current tenant, Matt Affolder, reached out toCouncil asking for the RFP discussion to be heard again since he did not havean opportunity to address the Council at the December 7, 2021 meeting. Affolder had not been officially notified that Staff was asking to authorize a Request forProposals for the concession stand at JMF, following his request to terminate hislease and for the item to be considered at the December 7, 2021 City Councilmeeting.Recommended ActionDiscuss and provide direction to Staff. Staff recommendation is to proceed forward with the authorized and published Request for Proposal and timeline for a qualified business party to contract for operations at the snack bar concessionat Joe Machado Field.
Mayor Marshall adjourned the meeting at 7:41 p.m.
I, Gabrielle Morones, Deputy City Clerk, do hereby certify that the DVD videotape of the City Council Meeting on January 4, 2022, is the official record of the Council Meetingand is on file and maintained in City Hall.
Gabrielle Morones, Deputy City Clerk! Sr. Administrative Assistant
FIFTH AMENDMENT TO THE
FRANCHISE AND LEASE AGREEMENT
BETWEEN THE CITY OF AVALON AND CR&R, Inc.
THIS FIFTH AMENDMENT to is made and entered into this
day of , 2021,
by and between the CITY OF AVALON (the “City”), and CR&R, INC., a corporation with its principal place of business in California, (“CR&R”) dba, Avalon Environmental Services, sometimes jointly referred to as “Parties.”
RECITALS
WHEREAS, on or about March 20, 2013 the City and CR&R entered into a Franchise and Lease Agreement (“Agreement”) under which CR&R agreed to provide solid waste handling and collection services; and
WHEREAS, on or about June 18,2013, the City and CR&R entered into a First Amendment to the Agreement (“First Amendment”); and
WHEREAS, on or about June 3,2014, the City and CR&R entered into a Second Amendment to the Agreement (“Second Amendment”); and
WHEREAS, on or about June 2, 2015, the City and CR&R entered into a Third Amendment to the Agreement (“Third Amendment”); and
WHEREAS, on or about May 18, 2016, the City and CR&R entered into a Fourth Amendment to the Agreement (“Fourth Amendment”): and
WHEREAS, pursuant to Section 17 ofthe Agreement, the Agreement may only be amended by written agreement signed by both the City and CR&R.
AGREEMENT
NOW, THEREFORE, in good and valuable consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which is hereby acknowledged, the Partieshereto agree as follows:
1. Section 1 of the Agreement is amended to add or revise the following definitions to the current list of definitions:Container. Container means an approved Container used for the disposal and storage untilCollection of Solid Waste, Organics or Recyclable Material. It includes a Cart, Bin, or DebrisBox.
Food-Soiled Paper. Food-Soiled Paper means pre- and post-consumer compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostablepaper plates, paper coffee cups, coffee filters, napkins, pizza boxes, and milk cartons.Food Waste. Food Waste means Source Separated food scraps and Food-Soiled Paper. Food Waste is a subset of Organic Materials.Generator. Generator means the person who produces Solid Waste, Recyclable Materials or Organic Waste.
Hauler. Hauler means CR&R Incorporated or Company.
Organic Waste. Organic Waste means Solid Wastes containing material originated fromliving organisms and their metabolic waste products including, but not limited to, FoodWaste, Green Waste, yard trimmings, organic textiles and carpets. lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or asotherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
Organic Waste Processing Facility. Organic Waste Processing Facility means a facility used by the Company for handling, processing, and preparing collected Organic Waste for marketing.
Prohibited container contaminants. Prohibited container contaminants shall have the samemeaning as 14 CCR Section 18982(a)(55).
2. Section 3.7.3 is hereby added to the Agreement, to supplement Section 2 of the First Amendment, to read:“3.7.3 Franchise Fee. Company shall pay a Franchise Fee to City each month. Company has proposed and City has agreed that the amount of the Franchise Fee shall be equal to tenpercent (10%) of the amount it charges its customers. Company and City agree that thecompensation under Section 3.7.1 is a negotiated amount that is reasonably related to thevalue of the rights granted to Company under this Agreement. City may use theFranchise Fee for any lawftil purpose.
3. Section 4.1.1 is hereby added to the Agreement to read:
“4.4.1 Container Colors. The Solid Waste,Recycling Container, and Organics Containers shall meet the color requirements of the 14 CCR Section 18984.7and other applicable law.”
4. Section 4.1.2 is hereby added to the Agreement to read:
“4.1.2 Container Labeling. Beginning January 1, 2022, all Containers provided by Company shall be labeled in accordance with 14 CCR Section 18984.8.Company shall be prohibited from including Company’s name and/or logo onany Containers utilized in the City unless otherwise approved by City ContractManager.Recyclable Materials and Organic Waste Container labels must include atleast three (3) graphic examples of materials that are accepted in theContainer, and at least two (2) graphic examples of materials that areprohibited from being placed in the Container, clearly displaying that theprohibited materials are prohibited (using recognizable symbols). Solid WasteContainer labels must include at least two (2) graphic examples of materialsthat are prohibited from being placed in the Container, clearly displaying thatthe prohibited materials are prohibited (using recognizable symbols), and a statement that proper separation of Recyclable Materials and Organic Waste is mandatory.”
2 5. Section 4.2.1 of the Agreement is hereby amended to read in full as follows:
“4.2.1 Single-Family Residence Service. The Company shall, once per week and as needed on an on-call basis, collect the Solid Waste which has been placed at Curbside prior to the Companys normal weekly collection time. BeginningAugust2013 and to be completed by September 1,2013 and without expense to City or Customer, tile Company shall provide Carts sufficient to provide the levelof Service requested by each Customer. In addition, upon request, the Company.without expense to the City or Customer, shall provide a Solid Waste Cart to anew Residential Customer that has no such container within five (5) working days after notice, of, or request for, Service, or in the case of annexations, withinfourteen (14) days of the annexation effective date. Prior to the earlier of the delivery ofthe Cart set forth in this Section or September 1,2013, Company shallcollect all Solid Waste from each Customer in the same manner and subject tothe same conditions as the City’s incumbent waste hauler provided such services as of the Signature Date.”
6. Section 4.2.2 ofthe Agreement is hereby amended to read in ftill as follows:
“4.2.2 Multiple-Family Dwelling Service (Commercial). The Company shall, once per week and as needed on an on-call basis, collect the Solid Waste which has beenplaced in Solid Waste Carts at Multiple-Family Dwellings within the City priorto the Company’s normal weekly collection time, provided that in no event shall theCompany be required to collect any additional Solid Waste which is not placed in a receptacle unless such Multiple-Family Dwelling is not placing Solid Waste inreceptacles when CR&R services begin and such customer does not request areceptacle. Beginning August 2013 and to be completed by September 1,2013 and without expense to City or Customer, Company shall furnish or provide Carts, Bins, Compactors or Debris Boxes for use in Collection, as appropriate, to all Multiple-Family Dwellings which generate Solid Waste within the City. The sizeof the receptacles shall be determined by City and the Company. In addition, theCompany. without expense to the City or Customer, and within five (5) working days after notice, shall provide a Solid Waste receptacle sufficient to provide therequested level of Service to a new Commercial Customer subject to thissubsection that has no such container, Bins. Compactors and Debris Boxes shall be placed on hard surface locations which are accessible to the Company. Use ofBins, Compactors or Debris Boxes by Customers may be exclusive or shared asdetermined by City and Company. Receptacles shall, at all times, be maintained in a well-kept appearance. Bins. Compactors and Debris Boxes must be maintained with lids. Customers shall be responsible for sanitation and deodorizing of such Bins. Compactors and Debris Boxes. Prior to the earlier of the delivery of thereceptacle set forth in this Section or September 1,2013, Company shall collectall Solid Waste from each Customer in the same maimer and subject to the same conditions as the City’s incumbent waste hauler provided such services as oftheSignature Date.”
7. Section 4.3.1 of the Agreement is hereby amended to read in full as follows:
3 “4.3.1 Residential Recycling. The Company shall Collect, and Transport Unsorted Recyclables listed in ATTACHMENT 4 from all Residential Customers,including those Multiple-Family Dwellings that use Cart Service to the mainlandof California for recycling. Scrap metal shall be shipped to the scrap yard at thePort of Long Beach for recycling. The Company shall not be required to collectRecyclables from a Cart ifthe Recyclables are commingled with Solid Waste orOrganic Waste. In the event the Recyclables and Solid Waste are commingledand contaminated, the Company will leave the material in the Solid Waste Cartand will leave a non-collection notice explaining the reason for non-Collection ofthe RecyclaMes or may collect the contaminated Recyclables as Solid Waste andcharge the customer for extra disposal costs. Beginning August 2013 and to be completed by September 1, 2013 and without expense to City or Customer, theCompany shall provide the Customer the requested amount of Recyclable Cartsor other receptacle sufficient to provide the level of Service requested by eachCustomer. In addition, the Company, without expense to the City or Customer,shall provide a Recyclable Cart to a new Residential Customer that has no suchcontainer within five (5) working days after notice, of, or request for, Service, or in the case of annexations, within fourteen (14) days ofthe annexation effective date. Prior to the earlier of the delivery ofthe receptacle set forth in this Sectionor September 1, 2013, Company shall collect all Recyclables from each Customer in the same manner and subject to the same conditions as the City’sincumbent waste hauler provided such services as of the Signature Date.”
8. Section 4.3.2 of the Agreement is hereby amended to read in full as follows:
“4.3.2 Commercial Recycling. The Company shall Collect and Transport Unsorted Recyclables listed in ATTACHMENT 4 from all Commercial Premises thatparticipate in Recycling Service to the mainland of California for recycling.
Scrap metal shall be shipped to the scrap yard at the Port of Long Beach for recycling. The Company will develop and implement quality assuranceprocedures to monitor the Recycling performance of Commercial Customers.Beginning August2013 and to be completed by September 1, 2013 and withoutexpense to City or Customer, the Company shall provide approved RecyclingContainers to each participating Commercial Premises. Recycling Containers shall be provided within fifteen (15) working days of sign-up and Owner’s or manager’s provision of a proper site. Recycling Containers shall be sited inaccordance with all policies and regulations ofthe City. Prior to the earlier ofthedelivery of the receptacle set forth in this Section or September 1, 2013, Company shall collect all Recyclables from each Customer in the same manner and subject to the same conditions as the City’s incumbent waste hauler provided such services as of the Signature Date.”
9. Section 4.3.6 of the Agreement is hereby amended to read in full as follows:
“4.3.6 Construction and Demolition Debris. The Company shall encourage builders and demolition companies (“Construction Companies”) to source-separate their C&DDebris for future Recycling. The Company will develop and distributeeducational materials for Construction Companies with regard to recycling of 4 C&D Debris. The educational materials will be distributed in coordination with the issuance of building permits in the manner to be provided in the City ordinance. Prior to disposal. the Company shall salvage Recyclables from C&DDebris collected pursuant to this Agreement and to retain funds derived therefrom subject to the terms of Section 3.7. In addition, Company shall pay City Sixty Dollars ($60) per ton (pre-processing) for all C&D Debris collected and shipped to the mainland ofCalifornia for processing, which shall be payable in the same manner and at the same time as payments pursuant to Section 3.7.Company shall include documentation in all reports required under Section 3.7 indicating the date and amount of all C&D Debris received at the MRF and amount paid to the City for such C&D Debris. The price per ton set forth in thepreceding sentence shall be adiusted annually in the same manner as the Company Service Fee.
10. Sections 4.4.1 — 44.7 of the Agreement are hereby amended to read in full as follows:
“4.4 ORGANIC WASTE
4.4.1 Residential Organic Waste Collection. The Company shall Collect. Transport. and Process Organic Waste placed in 65-gallon Organic Waste Carts, as described herein. Tree trimmings, brush, shrubs, or other materials susceptible to being bundled shall be securely tied in bundles not heavier than fifty (50) pounds nor more than five (5’) feet in length and twenty-four (24”) inches in diameter.
Beginning August2013 and to be completed by September 1,2013 and without expense to City or Customer, the Company shall provide the Customer therequested amount of Organic Waste Carts sufficient to provide the level of Service requested by each Customer. In addition, the Company, without expense to the City or Customer, shall provide a Organic Waste Cart to a new Residential Customer that has no such container within five(S) working days after notice of or request for, Service, or in the case of annexations. within fourteen (14) days of the annexation effective date. The Organic Waste shall go directly into the composting grinder in the City and the recovered organic waste shall he used as compost or fertilizer. The recovered organic waste shall not be used as alternative daily cover unless the City receives diversion credit. Prior to July 1, 2022 for all existing Customers and concurrently with the delivery ofthe Organic Waste Cart for all new Customers, Company shall provide a plastic pail for Customers to use to place Food Waste prior to depositing it into the Organic Waste Cart.”
4.4.2 Commercial Organic Waste Collection. Subscribing to at least once per week Organic Waste Service shall be mandatory for Commercial Customers except as otherwise provided in this Agreement. The Customer seeking the Service mustcontact the Company to initiate the Service. The Organic Waste shall go directly into the composting grinder in the City and the recovered organic waste shall beused as compost or fertilizer. Company shall provide all Bins. Carts. and Containers necessary for the Service.
5 4.4.3 Cleanup. The Company shall be responsible for cleanup of any Organic Waste dropped or spilled by its employees or agents during Collection or Transport.
4.4.4 Free City Service. The Company shall provide free Organic Waste Collection for all City-owned, City-leased, or City-rented municipal parks, offices, and facilities.
4.4.5 Hours and Schedule of Collection. Collection of Organic Waste from all Residential Customers and subscribing Commercial Customers shall be made on a regular weekly schedule on the same day as Solid Waste Collection. Collection Service shall not start before 6:00 a.m. or continue after 6:00 p.m., subject to change by resolution of the Council. However, the hours of Collection may beextended temporarily as a result of extraordinary circumstances or conditionswith the prior consent of the City Representative.
4.4.6 Holiday Tree Collection. The Company shall collect holiday trees at Curbside on the regular day of Collection Service each year from December 26 through February 1.
4.4.7 Non-Collection Due to Contamination. Except as required above, the Company shall not be required to collect Organic Waste if it is commingled with SolidWaste or Recyclables. In thc event the Organic Waste is commingled with nonOrganic Waste materials to the extent that they cannot easily be separated by theCompany. the Company will leave the Organic Waste uncollected and will leave a non-collection notice explaining the reason for non-Collection or may collectthe contaminated Organic Waste as Solid Waste and charge the customer forextra disposal costs.
4.4.8 Meet and Confer. In the event that City becomes eligible for a City-wide exemption from the requirements of SB 1383 at any lime during the term oithisagreement, City and Contractor shall meet and confer to evaluate potentialchanges to Organic Waste service and resulting cost reductions. Such changesand reductions shall be incorporated into an amendment to this Agreement andprovided to City Council lhrpproval.”
11. Section 4.6 is hereby added to the Agreement to read; “4.6 GENERATOR WAIVERS
City may elect to provide for one or more of the following types of Generator waivers toGenerators. Waivers shall be subject to compliance with SB 1383 Regulatory requirements, pursuant to 14 CCR Section 18984.1 ,or other requirements specified by the City. Company shall verify Multiple-Family Dwelling and Commercial Customer de minimis and physicalspace constraint waivers, if applicable. at least once every five (5) years from the date ofissuance of the waiver, and maintain related records. Granting of waivers shall be done by theCity.
4.6.1 De Minimis Waivers. The City may waive a Multiple-Family Dwelling’s, Commercial Customer’s, or its Owner’s obligation to comply with some or allof the Source Separated Recyclable Materials and Organic Materials 6 requirements set forth in this Agreement, and SB 1383 Regulations, if the Multiple-Family Dwelling. Commercial Customer, or its property Ownerprovides documentation or the City has evidence demonstrating one of the following de minimis conditions.
4.6.1.1 The Multiple-Family Dwelling’s or Commercial Customer’s total Solid Waste Collection service is two (2) or more cubic yards per week, and Recyclable Materials or Organic Waste comprises less thantwenty (20) gallons per week, per applicable Container, of the Multiple-Family Dwelling’s or Commercial Customer’s total waste;or,
4.6.1.2 The Multiple-Family Dwelling’s or Commercial Customer’s total Solid Waste Collection service is less than two (2) cubic yards per week, and Recyclable Materials or Organic Waste subject toCollection comprises less than ten (10) gallons per week, perapplicable Container, of the Multiple-Family Dwelling’s orCommercial Customer’s total waste.
4.6.2 Physical Space Waivers. The City may waive a Multiple-Family Dwelling’s, Commercial Customer’s, or its property Owner’s obligation to comply withsome or all of the Recyclable Materials or Organic Waste servicerequirements set forth in this Agreement and SB 1383 Regulations, if theMultiple-Family Dwelling, Commercial Customer, or its property Owner provides documentation, or the City has evidence from its staff, a contractor, licensed architect, or licensed engineer demonstrating that the premises lacksadequate space for Recyclable Materials or Organic Waste Containers.”
12. Section 6.11 is hereby added to the Agreement to read:
“6.11 ORGANIC WASTE RECOVERY EDUCATION AND OUTREACH.Prior to February 1, 2022 and annually thereafter, Company shall, consistent with 14 CCR Section 18985.1, provide Generators with information on properly separating materials, Organic Waste prevention, on-site recycling. composting, methane reduction benefits, how torecycle Organic Waste, approved haulers, public health and environmental impactsassociated with landfilling Organic Waste, self-haul requirements, and edible food donation.Company shall prepare and distribute public education and outreach materials in non-English languages spoken by a substantial number of the public that are provided Organic Waste collection services, consistent with the requirements of Government Code section 7295.Annually, commencing in 2022, Company shall provide Tier One and Tier Two CommercialEdible Food Generators with information on the City’s edible food recovery program,generator requirements, and food recovery.
Company shall cooperate and coordinate with the City Manager or his or her designee on public education activities to minimize duplicative, inconsistent, or inappropriately timededucation campaigns. Company shall obtain approval from the City Manager or his or herdesignee on all Company-provided public education materials including, but not limited to:print, radio, television, or internet media before publication, distribution, and/or release. City shall have the right to request that Company include City identification and contactinformation on public education materials and approval of such requests shall not be 7 unreasonably withheld.”
13. Public Recycling Depot. In lieu of providing twice weekly collection services. Company shall establish a public recycling depot located at [insert address] where anyone can self-haul and deposit solid waste. Recyclable Materials and Organic Waste 24 hours a day, 7 days a week.without charge. The City Manager may approve or direct adjustments to the hours of operation with written notice to Company.
14. All references to “Green Waste” throughout the Agreement shall he amended to refer to “Organic Waste” except for the definitions of “Green Waste” and “Green Waste Processing Facility” in Section 1, where both “Green Waste” and “Organic Waste” are referred to in the same section. or as expressly referenced in this Fifth Amendment.
15. The Company shall remove all Compactors from the services provided in order to comply with source separation requirements of SB 1383 Regulations. All references to “Compactors” throughout the Agreement are hereby deleted, with the exception of Section 3.5.1.
16. Section 6.6.4 is hereby added to the Agreement to read:
“6.6.4 CONTAMINATION MINIMIZATION PROGRAM
Company shall assist in minimizing contamination by helping to educate Customers on acceptable and non-acceptable materials, by monitoring the contents of Collection Containers, and by refusing to Collect Containers with visible Prohibited Container Contaminants. Companyshall. at its sole expense. either (1): conduct Hauler route reviews each calendar year for Prohibited Container Contaminants in Containers in a manner that is deemed safe by theCompany, is approved by the City, and is conducted in a manner that results in all Hauler routesbeing reviewed, in accordance with 14 CCR Section 18984.5(b) or (2) conduct waste evaluations for Prohibited Container Contaminants though sampling of materials from all Container typesand shall do so at least twice per year and in two distinct seasons of the year in a manner that complies with the requirements of 14 CCR Section 18984.5(c).
6.6.4.1 Number of Containers to Review. Company shall visually inspect the contents of a reasonably representative number of Containers, as directed and approved by the City, perHauler route to search for Prohibited Container Contaminants, for each and every Hauler route.
The Containers shall be randomly selected by a method approved by the City.
6.6.4.2 Route Review Methodology. Company shall develop a Hauler route review methodology that complies with the requirements of 14 CCR Sections 18984,5(b) or 18984.5(c).
Company shall submit its proposed Hauler route review methodology for the coming year to the City no later than January 15 of each year describing its proposed methodology for the calendaryear and schedule for performance of each Hauler route review. Companys proposed Haulerroute review methodology shall include its plan for Container inspections and shall also include its plan for prioritizing the inspection ofCustomers that are more likely to be out of compliance.
City shall review, comment on. and approve the proposed methodology. Company may commence with the proposed methodology upon approval. Ifthe City notifies the Company thatthe methodology is inadequate to meet the requirements of SB 1383. Company shall. at its sole expense, revise the methodology and. after obtaining City approval, conduct additional Hauler 8 route reviews, increased Container inspections, or implement other changes using the revised procedure.
6.6.4.3 Scheduling. The City may request, and Company shall accept, modifications to the schedule to permit observation by the City. In addition, Company shall provide email noticeto the City no less than ten (10) working days prior to each scheduled Hauler route review that includes the specific time(s), which shall be within the City’s normal business hours, andlocation(s).
6.6.4.4 Documentation. Company shall document Contamination with still pictures or video, and will notil’ the Customer ofthe Contamination and recycling requirements. Company may, at its discretion Collect the Container as Recyclable Materials. Organic Materials, or as Solid Waste.
6.6.4.5 Reporting Requirements. Company shall maintain records and report to the City on contamination monitoring activities and actions taken.”
17. Section 6.6.5 is hereby added to the Agreement to read:
“6.6.5 SB 1383 MONITORING AND INSPECTIONSCompany shall perform Customer compliance reviews described in this Section aimually., unlessotherwise noted.6.6.5.1 Commercial Generator Compliance Reviews. Company shall complete a compliancereview of all Multiple-Family Dwellings and Commercial Customers that generate two (2) cubic yards or more per week of Solid Waste. including Organic Materials, to determine theircompliance with: (i) Generator requirements under this Agreement; and, (ii) if applicable forthe Customer. Self-Hauling requirements per 14 CCR Section 18988.3. including whether a Commercial premise is complying through back-hauling Organic Waste. The compliance reviewshall mean a “desk” review of records to determine Customers compliance with the aboverequirements and does not necessarily require on-site observation of service.6.6.5.2 Hauler route review. The Company shall conduct annual Hauler route reviews forGenerator compliance as detailed in Section 6.6.4 and these reviews may be performedconcurrently with the Contamination monitoring Hauler route reviews.
6.6.5.3 Compliance Review Process. Company shall conduct inspections ofentities described inthis section at a minimum of once per year or as directed by City to adequately determine theentities’ overall compliance with SB 1383. City reserves the right to require additional inspections, if the City determines that the amount of inspections conducted by the Company isinsufficient. City may require the Company to prioritize inspections of entities that the City determines are more likely to be out of compliance.
6.6.5.3.1 Non-Compliant Entities. From the commencement date through December 31. 2023, when compliance reviews are performed by Company pursuant to this Section, Company shall provide City-approved educational materials, in response to violations. Company shall provide these educational materials to the non-compliant Customers and Generators within two (2) working days of determination of non-compliance or immediately upon determination of 9 non-compliance if such non-compliance is determined during an inspection or Hauler route review. Company shall document the non-compliant Customers and Generators and the date and type of education materials provided and report such information to the City. Beginning January 1, 2024, the Company shall document non-compliant Customers and Generators determined through Company’s compliance reviews, and shall report all Customers and Generators with SB 1383 violations to the City. The City shall be responsible for subsequent enforcement action against the Generator or Customer.
6.6.5.3.2 Documentation ofInspection Actions. The Company shall generate a written or electronic record and maintain documentation for each inspection, Hauler route review, andcompliance review conducted.
6.6.5.4 Documentation of SB 1383 Non-Compliance Incidents. Company shall maintain a computer database of all oral and written SB 1383-related non-compliance incidents reported to Company from Customers or other persons.
6.6.5.4.1 Reports of SB 1383-Noncompliance Incidents. For reports received in which Customers or other persons allege that an entity is in violation of SB 1383 requirements,Company shall document such incident investigations. Company shall provide this informationin a brief incident report to the City for each SB 1383-noncompliance incident within five (5) working days of receipt of such incident, and a quarterly summary report of SB 1383- noncompliance incidents.
6.6.5.4.2 Investigation of SB 1383-Noncompliance Incidents. Company shall assist City in meeting its obligation to investigate non-compliance incidents by commencing aninvestigation within thirty (30) days of receiving notice of an incident in the followingcircumstances: (i) upon Company receipt of an incident that an entity may not be compliant with SB 1383 and if City determines that the allegations against the entity, iftrue, would constitute a violation of SB 1383; and, (ii) upon City request to investigate an incident received by City, inwhich City determines that the allegations against the entity, iftrue, would constitute a violationof SB 1383. Company is required to investigate incidents against Customers and Generators,including Tier One and Tier Two Commercial Edible Food Generators, against Edible Foodrecovery organizations, Edible Food recovery services, and other entities regulated by SB 1383.
Company shall investigate the incident by:
i. Reviewing the service level of the Customer (if the entity is a Customer of the Company);
ii. Reviewing the waiver list, if applicable, to determine if the entity has a valid, City-approved de minimis or physical space constraint waiver; Hi. Reviewing the Self-Haul registration list, if applicable, to determine ifthe entity has registered and reviewing the entities reported Self-Haul information; iv. Inspecting premises of the entity identified in the incident notice, if warranted; and,
v. Contacting the entity to gather more information, if warranted; 10 vi. Affixing a City-approved notice of non-compliance incident report on the Customer’s Container that includes SB 1383 Generator requirements and, if applicable, provides a City-approved deadline for correction.
6.6.5.4.3 Reporting. Within ten (10) days of completing an investigation of an SB 1383-noncompliance incident, Company shall submit to City an investigation incident report that documents the Customer account in question, the nature of the incident, the investigationperformed. and recommends to City whether or not the entity investigated is in violation of SB 1383 based on the Company’s investigation. The City shall make a final determination of the allegations against the entity.
Company shall provide to City in its reports a list of all Customer non-compliance incident notices that have not been resolved by Company within thirty (30) days of receivingsuch notice. The Customer incident list shall include the Customer’s account information. including Customer’s then-current service level, the nature of the incident, and Companvsefforts to resolve the incident. City, or its designee. shall be responsible for investigating suchoutstanding incidents received by Company.
Within three (3) Working Days of the City’s or its designee’s request. Company shall provide City or its designee with Customer account information and other documentation that may be useful in the investigation such as records of the Customer’s most recent change(s) inservice level and other Customer service records.
6.6.5.5. Delegation Options. This section in no way precludes the City or its designee, from performing the inspections specified in this Section in lieu ofor in addition to theCompany’s inspections. Company shall support any inspections or reviews conducted by theCity or its designee through actions including, but not limited to. providing information or datarequested by the City or its designee.”
18. The Company shall provide the programs and services for all Customers set forth in this Fifth Amendment on or before July 1,2022. Beginning July 1.2022, the Company Service Fee shallhe increased by $276.303 per year. Such increase shall he in addition to any CPI adjustment provided under Section 8.2. City and Company agree that CPI shall mean the All Urban Consumers Consumer Price Index for Los Angeles-Long Beach-Anaheim as successor to the CPI in the Agreement.
19. Ifthe City receives a City-wide exemption from the requirements of SB 1383 on or before June 30, 2022, it may terminate this Fifth Amendment with written notice to Company. In such event, the Fifth Amendment shall be null and void.
20. This Fifth Amendment may be executed in any number of counterparts. each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
21. This Fifth Amendment shall affect only the items specifically set forth herein, and all other terms and conditions of the Agreement, as amended by the First. Second, Third, and FourthAmendments, shall remain in full force and effect. “
IN WITNESS WHEREOF, the City and CR&R have entered into this Fifth Amendment to the 11 Franchise and Lease Agreement by and between the City of Avalon and CR&R, Inc., as ofthe date first set forth herein.
THE CITY OF AVALON CR&R, Inc. dba AVALON
ENVIRONMENTAL SERVICES
By:________________________________ By:________
Name: Denise Radde Name:Title: City Manager Title: -
Date: Date:
By:_______
Name:
Title:
Date:
12 ORDINANCE NO. 1204-21
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AVALON, CALIFORNIA AMENDING CHAPTER 6-2 OF THE
AVALON MUNICIPAL CODE RELATING TO
SOLID WASTE COLLECTION
WHEREAS, SB 1383 (Chapter 395, Statutes of 2016) directed the California Department of Resources Recycling and Recovery (“CaiRecycle”) to adopt regulations to reduceorganic waste by 50 percent from its 2014 baseline level by 2020 and 75 percent by 2025; and WHEREAS, SB 1383 also requires the regulations to recover, for human consumption, at least 20 percent of edible food that is currently thrown away; and WHEREAS, CalRecvcle promulgated regulations as directed in SB 1383 in Chapter 12 (Short-Lived Climate Pollutants) of Division 7 of Title 14 of the California Code of Regulations (“SB 1383 Rcgulations”); and
WHEREAS, the SB 1383 Regulations take effect January 1,2022. and requires the City of Avalon to adopt an ordinance to enforce the SB 1383 Regulations by said date, and; WHEREAS, the City Council desires to amend its Solid Waste and Recyclables Collection Services Ordinance to comply with the SB 1383 Regulations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AVALON
DOES ORDAIN AS FOLLOWS:
Section 1. Chapter 6-2 is hereby amended in its entirety as set forth in Exhibit A. incorporated by this reference.
Section 2. Environmental review is not required because adoption of the Ordinance is not a project under the California Environmental Quality Act (CEQA)pursuant to CEQA Guideline I 5378(b)(5) (organization or administrative activities of governments not a project).
Section 3. If any section, subsection, clause or phrase in this Ordinance or the application thereof to any person or circumstances is for any reason held invalid, the validity of the remainder of this Ordinance or the application of such provisions to otherpersons or circumstances shall not be affected thereby. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence. clause, or phrase thereof, irrespective of the fact that one or more sections. subsections, sentences, clauses or phrases or the application thereof to any person or circumstance be held invalid.
Section 4. No less than five days prior to the adoption of this Ordinance, the City Clerk published a summary of this Ordinance in accordance with Government Code section 36933. The City Clerk will certify to the passage of this Ordinance by the 65059.00004\34449883.3
City Council of the City of Avalon, California, and cause a summary to be published once within fifteen (15) days after its passage in a newspaper of generalcirculation, printed, published and circulated in the City in accordance withGovernment Code section 36933.
Section 5. This Ordinance shall take effect and be in full force 30 days after its adoption. -2-
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INTRODUCED AND WAIVED at a regular meeting of the City Council of the City of Avalon on the 1611 day of November, 2021, by the following vote:AYES: Mayor Marshall, Councilmembers MacGugan-Cassidy, Dc La Rosa, Lavelle and Ponce NAYS: None
ABSENT: None
ABSTAIN: None
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Avalon on this 7111 day of December, 202 1,by the following vote:AYES: Mayor Marshall. Councilmembers MacGugan-Cassidv, Dc La Rosa. Lavelle and Ponce NOES: None
ABSENT: NoneABSTAIN: None
Ann H. Marshall. Mayor
ATTEST:
Gabrielle Morones. Deputy City ClerkISr. Admin. Assistant APPROVED AS TO FORM:Scott Campbell
Best Best & Krieger. [[P
-3-
65059.00004\34449883 .3
EXHIBIT A
CITY OF AVALON, CA
TITLE 6: SANITATION AND HEALTH
CHAPTER 6-2 SOLID WASTE COLLECTION
ARTICLE I
Residential Accumulations and Collection
§ 6-2.101. Definitions.§ 6-2.102. Removal Limited.§ 6-2.103. Self-Haul of Solid Waste and Recyclables.§ 6-2.104. Landscaping Service.§ 6-2.105. Collections by Contractor Authorized.§ 6-2.106. Placement for Collection.§ 6-2.107. Placement of Containers.§ 6-2.108. Placing of Solid Waste or Recyclables Not Produced on the Premises.§ 6-2.109. Containers.§ 6-2.110. Placement of Solid Waste; Disposal of Specified Items and Materials.§ 6-2.111. Cleaning of Containers.§ 6-2.112. Trucks and Equipment.§ 6-2.113. Truck Covers.§ 6-2.114. Cleaning of Trucks.§ 6-2.115. Debris.§ 6-2.116. Care of Containers by Contractor.§ 6-2.117. Prohibition Against Tampering and Scavenging.§ 6-2.118. Dress of Employees.§ 6-2.119. Trucks, Routes, and Collection Schedule.§ 6-2.120. Bond.§ 6-2.12 1. Insurance.§ 6-2.122. Collection Rates.§ 6-2.123. Solid Waste Accumulations.§ 6-2.124. Public Nuisances: Abatement.§ 6-2.125. Rules and Regulations.§ 6-2.126. Breach of Contract.§ 6-2.127. Construction and Demolition Debris.§ 6-2.128. Requirements for Single-Family Generators (Standard Compliance Approach).§ 6-2.129. Requirements for Single-Family Generators (Performance-Based Compliance Approach).
§ 6-2.130. Requirements for Haulers and Facility Operators.§ 6-2.131. Residential Self-Hauler Requirements.§ 6-2.132. Inspections and Investigations. § 6-2.133. Violation—Penalties.
Exhibit A-i
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ARTICLE 2
Commercial and Public Place Accumulations, Disposal, and Collection § 6-2.20 1. Definitions -Commercial Solid Waste and Recyclable Collection.§ 6-2.202. Commercial Solid Waste and Recyclable Collection.§ 6-2.203. Used Cooking Oil Receptacles.§ 6-2.204. Gray Waste, Recyclable, and Food Waste Containers.§ 6-2.205. Disposal of Boxes.§ 6-2.206. Inspection of Containers Authorized.§ 6-2.207. Placement for Collection: Excessive Quantities.§ 6-2.208. Placement and Removal of Containers.§ 6-2.209. Collection Rates: Excessive Quantities.§ 6-2.2 10. Mandatory Disposal of Commercial Waste.§ 6-2.211. Unlawful Commingling of Waste and Unlawful Disposal of Specified Items and Materials.
§ 6-2.2 12. Requirements for Commercial Businesses (Standard Compliance Approach).§ 6-2.213. Requirements for Commercial Businesses (Performance-Based Compliance Approach).§ 6-2.214. Waivers for Generators. § 6-2.2 15, Requirements for Commercial Edible Food Generators.§ 6-2.2 16. Requirements for Food Recovery Organizations and Services.§ 6-2.217. Commercial Self-Hauler Requirements. § 6-2.2 18. Inspections and Investigations.
§ 6-2.219. Penalties for Violations.
ARTICLE 3
Disposal of Hazardous Waste
§ 6-2.301. Definitions.§ 6-2.302. Disposal of Hazardous Materials. § 6-2.303. Penalty for Violations.
ARTICLE 4
Disposal of Construction and Demolition Debris
§ 6-2.401. Definitions.§ 6-2.402. Prohibition of Disposal of C&D Materials at Landfill.§ 6-2.403. Collection and Flauling of C&D Materials.§ 6-2.404. Diversion Requirement§ 6-2.405. Penalty for Violations.
Exhibit A-2
65059.00004\34449883.3
ARTICLE 1. Residential Accumulations and Collection.
§ 6-2.101. Definitions.
For the purposes of this chapter. certain words and phrases used herein are defined as follows:
(a) BLUE CONTAINER — Shall have the same meaning as in 14 CCR § 18982.2(a)(5) and shall he used for the purpose of storage and collection of Source Separated RecyclableMaterials or Source Separated Blue Container Waste. (b) CALIFORNIA CODE OF REGULATIONS or CCR — Shall mean the State of California Code of Regulations.
(c) CALRECYCLE — Shall mean the California Department of Resources Recycling and Recovery.
(d) CITY — Shall mean the City of Avalon. California.
(e) CITY COUNCIL — Shall mean the City Council of Avalon, California.(0 COLLECTION — Shall mean the act of collecting Solid Waste. including Recyclable Materials and Organic Waste, at or near the place of generation by a Contractor who hasmade arrangements with the Generator for the collection of Solid Waste, RecyclableMaterials, and Organic Waste. (g) CONTRACTOR — Shall mean any person, firm, business, or corporation with whom the City has an exclusive or non-exclusive contract pursuant to the provisions of this article for the collection and disposal of Solid Waste. Recyclable Materials, and Organic Waste. (h) COMMUNITY COMPOSTING — Shall mean any activity that composts Organic Waste, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount offeedstock and compost on-site at any one time does not exceed 100 cubic yards and 750 square feet. as specified in 14 CCR § I 7855(aX4): or. as otherwise defined by 14 CCR § 18982(a)(8).
(i) COMPLIANCE REVIEW — Shall mean a review of records by the City to determine compliance with this chapter.
(j) CONTAINER — Shall mean any bin, vessel, can, or receptacle used for collecting Solid Waste. Recyclable Materials, and Organic Waste, for removal by an authorized Contractor. (k) CONTAINER CONTAMINATION or CONTAM[NATED CONTPJNER — Shall mean a Container, regardless of color, that contains Prohibited Container Contaminants, or as otherwise defined in 14 CCR § l8982(a)(55).
(1) COUNTY — Shall mean the County of Los Angeles.
Exhibit A-3
6505 90000404449883 .3
(m) DESIGNATED RECYCLING COLLECTION LOCATION — Shall mean the place designated by a Contractor for the collection of Recyclables. This location may be, but the City does not require that it be. at the curbside of a residential neighborhood or the service alley of a commercial enterprise.
(n) DWELLING means a residence. including any flat. apartment. or other facility intended to he and permitted to be used for housing one or more persons, except “dwelling” does not include hospitals, hotels. motels, nursing homes. or convalescent centers. (o) EDIBLE FOOD — Shall mean food intended for human consumption. or as otherwise defined in 14 CCR § 18982(a)(18). Edible Food is not Solid Waste if it is recovered and not discarded.
(p) ENFORCEMENT ACTION — Shall mean an action of the City to address non-compliance including, but not limited to, issuing administrative citations, fines, penalties. or using otherremedies. (q) ENFORCEMENT OFFICER — Shall mean the city manager, county administrative official, chief operating officer, executing director, public works director, or otherexecutive in charge, or their authorized designees who is/are partially or wholly responsiblefor enforcing this chapter. (r) EXTREMELY HAZARDOUS WASTE — Shall mean any hazardous waste or mixture of hazardous wastes which, if human exposure should occur, may likely result in death.disabling personal injury or illness during, or as a proximate result of. any disposal of suchwaste or mixture of wastes because of its quality, concentration, or chemical characteristics.
(s) FOOD WASTE — Shall mean food scraps separated from Solid Waste and offered for collection by Contractors, that will decompose and/or putrefy including (i) all kitchen and table food waste, and animal or vegetable waste that attends or results from the storage.preparation. cooking or handling of food stuffs: and (ii) paper waste contaminated with food waste.
(t) GENERATOR — Shall mean any person or other entity that is responsible for the initial creation of Solid Waste.
(u) GRAY CONTAINER— Shall have the same meaning as in 14 CCR § 18982.2(a)(28) and shall he used for the purpose of storage and collection of Gray Container Waste. (v) GRAY CONTAINER WASTE — Shall mean Solid Waste that is collected in a Gray Container that is pail of a three-Container Organic Waste collection service that prohibitsthe placement of Organic Waste in the Gray Container as specified in 14 CCR § 18984.1 (a)-(b), or as otherwise defined in 14 CCR § I 7402(a)(6.5). (w) GREEN CONTAINER— Shall have the same meaning as in 14 CCR § 18982.2(a)(29) and shall he used for the purpose of storage and collection of source separated Organic Waste.
Exhibit A-4
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(x) GREEN WASTE — Shall mean all tree and plant trimmings. prunings, grass cuttings. dead plants, weeds, leaves, branches, and similar plant materials. (y) HEALTH OFFICER — Shall mean the Health Officer of the City or his or her duly authorized deputy or representative.
(z) HIGH DIVERSION ORGANIC WASTE PROCESSING FACILITY -Shall mean a facility that is in compliance with the reporting requirements of 14 CCR § 18815.5(d) and meets or exceeds an annual average mixed waste organic content recovery rate of 50percent between January 1, 2022 and December 3 1, 2024, and 75 percent after January 1,2025, as calculated pursuant to 14 CCR § 18815.5(e) for Organic Waste received from the“mixed waste organic collection stream” as defined in 14 CCR § 17402(a)(l 1.5); or, asotherwise defined in 14 CCR § 18982(a)(33). (aa) INSPECTION — Shall mean a site visit where the City reviews records, Containers, and an entity’s collection, handling, recycling, or landfill disposal of Organic Waste or EdibleFood handling to determine if the entity is complying with requirements set forth in thischapter, or as otherwise defined in 14 CCR § I 8982(a)(35). (bb) MIXED WASTE ORGANIC COLLECTION STREAM or MIXED WASTE -Shall mean Organic Waste collected in a Container that is required by 14 CCR § 18984.1, 18984.2 or 18984.3 to be taken to a high diversion Organic Waste processing facility or as otherwise defined in 14 CCR § I 7402(a)(l 1.5).
(cc) MULTI-FAMILY or MULTI-FAMILY RESIDENTIAL DWELLING — Shall mean of. from, or pertaining to residential Premises with five (5) or more dwelling units. Multifamily Premises do not include hotels, motels, or other transient occupancy facilities, whichare considered Commercial Businesses. (dd) NOTICE OF VIOLATION or NOV Shall mean a notice that a violation has occurred that includes a compliance date to avoid an action to seek penalties, or as otherwise defined in 14 CCR § 18982(a)(45) or further explained in 14 CCR § 18995.4. (cc) OCCUPANT — Shall mean every occupant or possessor of a Premises in which a person lives or resides.
(if) ORGANICS, ORGANIC WASTE, and ORGANIC MATERIAL -Shall mean Solid Wastes containing material originated from living organisms and their metabolic waste products, including, but not limited to, Food Waste, Green Waste, non-hazardous woodwaste, and unwaxed, food-soiled paper. (gg) ORGANIC WASTE GENERATOR — Shall mean a person or entity that is responsible for the initial creation of Organic Waste, oras otherwise defined in 14 CCR § 18982(a)(48). (hh) OWNER — Shall mean the record owner of a Premises.
Exhibit A-S
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(ii) PAPER PRODUCTS — Shall mean, but is not limited to, paper janitorial supplies, cartons, wrapping, packaging. tile folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR § 18982(a)(51).
j) PERSON — Shall mean any individual, firm, corporation, partnership, association, or municipality. (kk) PREMISES — Shall mean all sites of residential real property upon which Solid Waste.
Recyclable Materials, or Organic Waste is produced or accumulates. (II) PRINTING AND WRITING PAPERS — Shall mean, but are not limited to. copy. xerographic. watermark, cotton fiber. offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper. note pads. writing tablets, newsprint, and other uncoated writing papers. posters. index cards. calendars, brochures, reports. magazines. and publications, or as otherwise defined in 14 CCR § I 8982(a)(54). (mm) PROHIBITED CONTAINER CONTAMINANTS Shall mean any of the following: (i) discarded materials placed in the Blue Container that are not identified as acceptable source separated Recyclable Materials for the City’s Blue Container; (ii) discarded materials placed in the Green Container that are not identified as acceptable source separated Organic Waste; (iii) discarded materials placed in the Gray Container that are acceptable source separated Recyclable Materials and/or source separated Organic Wastes to be placed in the Blue Container and/or Green Container; and (iv) non-Solid Waste items placed in any Container.
(nn) RECOVERED ORGANIC WASTE PRODUCTS — Shall mean products made from California. landfill-diverted recovered Organic Waste processed in a permitted or otherwise authorized facility, or as otherwise defined in 14 CCR § 18982(a)(60. (oo) RECOVERY — Shall mean any activity or process described in 14 CCR § 189831(b). or as otherwise defined in 14 CCR § 18982(a)(49).
(pp) RECYCLABLE MATERIALS or RECYCLABLES — Shall mean those materials, including, but not limited to. newspapers. newsprint, aluminum cans. con’ugatedcardboard, glass or plastic bottles or containers, and metal, that may be separated on acommercially reasonable basis from Solid Waste and returned to the economic mainstreamin the form of’ raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. (qq) RECYCLING — Shall mean the process of separating, collecting, sorting, cleansing. treating, reconstituting, or otherwise processing materials that are or would otherwise he disposed of in a landfill and returning them to the economic mainstream in the form of rawmaterial for new, reused, or reconstituted products which meet the quality standardsnecessary to be used in the marketplace. (rr) RESIDENTIAL — Shall mean any residential dwelling or apartment house.
Exhibit A-6
65 059. 00004\34449883 .3
(ss) ROUTE REVIEW — Shall mean a visual Inspection of Containers along a hauler route for the purpose of determining Container Contamination, and may include mechanical Inspection methods such as the use of cameras, or as otherwise defined in 14 CCR § I 8982(a)(65).
(tt) SB 1383—Shall mean Senate Bill 1383 (Chapter 395. Statutes of 2016).(uu) SB 1383 REGULATIONS — Shall mean the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that created 14 CCR. Division?, Chapter 12 and amended portions of regulations of 14 CCR and 27 CC R.
(vv) SCAVENGE — Shall mean the unauthorized removal of Recyclable Materials which have been placed in a Container for collection.
(ww) SELF-HAULER — Shall mean a person. who hauls Solid Waste. Organic Waste. or Recyclable Materials he or she has generated to another person. Self-hauler also includes a person who back-hauls waste, or as otherwise defined in 14 CCR § l8982(a)(66). Backhaul means generating and transporting Organic Waste to a destination owned and operated by the Generator using the Generator’s own employees and equipment. or as otherwise defined in 14 CCR § 18982(a)(66)(A).
(xx) SINGLE-FAMILY — Shall mean of, from, or pertaining to any residential premises with fewer than five (5) units.
(yy) SOLID WASTE — Shall mean all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and pails thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is nothazardous waste. manure. vegetable or animal solid or semisolid wastes, and other discarded solid and semisolid wastes.
(zz) SOLID WASTE MANAGEMENT FACILITY — Shall mean a facility where Solid Waste is sorted. processed. treated, or transferred.
(aaa) SOURCE SEPARATING or SOURCE SEPARATION — Shall mean the process of removing Recyclable Materials and Organic Waste from Solid Waste at the place ofgeneration. prior to collection, and placing them into Blue Containers that are separately designated for Recyclable Materials or Green Containers that are separately designated forOrganic Waste. (bbb) SOURCE SEPARATED BLUE CONTAINER WASTE — Shall mean source separated wastes that can be placed in a Blue Container that is limited to the collection of RecyclableMaterials. (ccc) SOURCE SEPARATED GREEN CONTAINER ORGANIC WASTE -Shall mean source separated Organic Waste that can be placed in a Green Container that is specifically Exhibit A-7
6 50 5 9 00004\34449 8 83 .3
intended for the separate collection of Organic Waste by the Generator, excluding source separated Blue Container waste, carpets. non-compostable paper, and textiles. (ddd) TRUCK — Shall mean any truck. trailer. semitrailer, conveyance, or vehicle used to collect, hold, or transport Solid Waste. Recyclables, or Organic Waste upon nnd along the streets.roads, or highways of the City. § 6-2.102. Removal Limited.
No person other than a Contractor or the City shall gather, collect, or remove from any Premises in the City any Solid Waste. Recyclables, or Organic Waste. § 6-2.103. Self-Haul of Solid Waste, Recyclables, and Organic Waste. (a) Occupants hauling occasional loads of Solid Waste. Recyclables. and Organic Waste from their own Premises to a legal point of disposal shall he responsible for the payment of service fees as provided in § 6-2.105. and comply with the self-hauling requirements as provided in § 6-2.131.
(h) Notwithstanding § 6-2.102, occupants may donate or sell any Recyclables to any party of their choice prior to placing them into a Container for collection. However, such occupants may still be responsible for the payment of a service fee as provided in § 6-2.105. § 6-2.104. Landscaping Sen’ice.
The provisions of § 6-2.102 shall not apply to the hauling or disposal of Green Waste to or at a legal point of disposal as an incidental part of a gardening or landscaping servicc. provided that the disposal is undertaken by the gardening or landscaping service and not a separate business directly or indirectly hired for clean-up, removal, or hauling. § 6-2.105. Collections by Contractor Authorized.
It is hereby declared the intention of the City to provide for the collection and removal of SolidWaste. Recyclables. and Organic Waste from Premises within the City in accordance with the regulations and provisions ofthis article and the rules, regulations. and provisions of any resolution of the City adopted pursuant to the provisions of this article and in accordance with the conditionsand terms of any contract entered into between the City and a Contractor pursuant to the provisions of this article.
A service charge for the collection, hauling, and disposal of Solid Waste, Recyclables. and Organic Waste shall be collected by the Contractor or City from each occLlpant or owner as provided by resolution of the City Council.
§ 6-2.106. Placement for Collection.
The Contractor shall collect and remove from all Premises as required by any contract entered intobetween the City and a Contractor all Solid Waste. Recyclables. and Organic Waste which are contained in a Container of the type required by the provisions of this article. Such Container, with Exhibit A-8
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the lid or cover securely closed, shall be placed along the street curb in front thereof or along the alley in the rear thereof, depending upon whether the prescribed route is along the street or alley.
The Contractor shall also collect and remove from all such Premises contracting for such collection Solid Waste, or Recyclables which, by the provisions of this article, need not be placed in aContainer. § 6-2.107. Placement of Containers.
No person shall place, or cause to be placed, any Container at any place or in any manner otherthan as provided in this article. No person shall place, or cause to be placed, any Container on any sidewalk, road, street, or alley on any day other than the day or days established for collection of Solid Waste, Recyclables, or Organic Waste on the particular route, and no person shall permit orcause such Container to remain there for more than 24 hours after the Container has been emptied.
Any Container placed for collection along a streel shall be placed between the curhline (or edge ofthe roadway) and the property line as close to the curb or edge of the roadway as practicable. Any Container placed for collection in any alley shall be placed as close to the property as practicableand shall not be placed in a manner which would obstruct vehicular travel. No person shall place. or cause to be placed. any Container without a lid or cover or a lid or cover that is not securely closed, except as permitted in § 6.2-110.
All newly-constructed Multi-Family dwellings in the City must include an enclosure of adequate size to facilitate the placement and collection of Containers for the Solid Waste, Recyclables, and Organic Waste generated at those Multi-Family dwellings. § 6-2.108. Placing of Solid Waste or Recyclables Not Produced on the Premises.
No person occupying. using. or in charge of any Premises shall set out, or cause to be set out, for collection during any week Solid Waste. Rec’clahles. and Organic Waste other than Solid Waste.Recyclables. and Organic Waste originating on the Premises, for collection. § 6-2.109. Containers.
Containers used at Premises shall be of such size, shape, and weight when filled that they may bereadily lifted for emptying into the trucks of the Contractor and free of all rough or jagged surfaces which may be likely to cause injury to persons lifting them. The Container shall have a lid or otheranimal proof cover. Such in the event that the contract entered into between the City and a Contractor contains standardized Container sizes and specifications or requires occupants to titilizeContainers provided by the Contractor, occupants shall comply with such requirements. Moreover, in the event that the contract entered into between the City and a Contractor requires occupants to place Solid Waste, Recyclables and/or Organic Waste in separate Containers, all persons shall only place Solid Waste. Recyclables or Organic Waste, as applicable, in each Container and shall ensure that such Container is properly placed for collection with the lid or cover securely closed.
Container bodies and/or lids shall conform to the coloration requirements set forth in the SB 1383 Regulations and as further described in § 6-2.132.
§ 6-2.110. Placement of Solid Waste; Disposal of Specified Etems and Materials.
Exhibit A-9
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Every person having the charge or control of any Premises where Solid Waste, Recyclables, and Organic Waste accumulates shall place such Solid Waste, Recyclables. and Organic Waste in aContainer; provided, no single item placed for collection shall exceed five feet in length and sixinches in width. Tree trimmings, brush, shrubs, or other materials susceptible to being bundledshall be securely tied in bundles not heavier than 50 pounds nor more than five feet in length and 24 inches in diameter. It shall be unlawful for any person having the charge or control of anyresidential Premises to dispose or attempt to dispose of appliances, furniture and furnishings,televisions, monitors, computer equipment and related electronics, construction materials anddebris, including but not limited to concrete, plaster, asphalt, at any place or time other than directlyto the landfill facility or as otherwise directed by the City or the Contractor. All Container lids orcovers shall remain closed and secured, except when one is depositing Solid Waste, Recyclables,or Organic Waste, as applicable. § 6-2.111. Cleaning of Containers.
After each emptying and before any Container used for Solid Waste, Recyclables, or Organic Waste is again used, such Container shall be thoroughly cleaned, and all grease and adherent materials shall be removed by the occupant.
§ 6-2.112. Trucks and Equipment.In addition to the requirements set forth in § 6-2.113 of this article, all trucks and equipment of theContractor used in the City shall be maintained at all times in good mechanical condition. Thesides and covers of such trucks shall be so constructed, used, and maintained that Solid Waste,Recyclables, or Organic Waste will not blow, fall, or be dislodged from the truck into the streetsof the City at any time. If operated pursuant to a contract with the City, such trucks shall be of thetype and kind as designated by the Council by ordinance or resolution. When not in use, suchtrucks and equipment shall be parked or stored in an area approved by the City. § 6-2.113. Truck Covers.
The bodies of all trucks transporting Solid Waste, Recyclables. or Organic Waste along any publicroad, street, alley, or highway in the City shall have a minimum covering of metal or a cleantarpaulin or otherwise ensure that Solid Waste, Recyclables. or Organic Waste remain within thetruck during transport to the place of disposal. § 6-2.114. Cleaning of Trucks.
All trucks and equipment shall be cleaned and washed as provided for in the contract between the City and Contractor.
§ 6-2.115. Debris.
The Contractor shall carry on each truck a broom, shovel, and such other equipment necessary to clean and pick up any debris of any sort deposited upon the streets, roads, highways, alleys,sidewalks, or private property by reason of the activity of the Contractor. The Contractor shallclean, pick up, haul away, and dispose of any debris left or deposited upon the streets, roads, Exhibit A-b
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highways, alleys, sidewalks, or private property within the City by reason of the activities of the Contractor.§ 6-2.116. Care of Containers by Contractor.
The Contractor shall return all Containers in an upright position to the approximate location wherefound by the Contractor and without any unnecessary wear, tear, or damage to the Container.§ 6-2.117. Prohibition Against Tampering and Scavenging.(a) Prohibition Against Tampering with Containers. No person, other than the owner, occupant, their agents, or an officer or employee of the City, or the Contractor and itsemployees, shall tamper with any Container, or the contents thereof, or remove the contentsof any such Container, or remove any such Container from the location where the same shall have been placed by the owner thereof or his or her agent. (b) Prohibition Against Scavenging.
(1) When Recyclables have been placed in a Container, such Recyclables shall become the property of the City or its Contractor, as set forth in the parties contract, and shall be used for recycling purposes. No person other than the employee(s) oragents of the City or Contractor acting in the scope of their employment or agencyshall scavenge or otherwise remove Recyclables from a Container, or transport such materials over the public street, except that any occupant may remove Recyclableswhich have been generated on his or her Premises. (2) No person shall appropriate or remove from any place or Premises in the City, any Recyclable Container provided by the City or the Contractor for the purposes ofstorage and collection of Recyclables. No person shall utilize any such RecyclingContainer for any purpose other than the collection and removal of Recyclables bythe City or the Contractor. (c) Enforcement. Any person, firm. or corporation, whether as principal, agent, employee or otherwise, violating any provision of this chapter is guilty of a misdemeanor. § 6-2.118. Dress of Employees.
All employees ofthe Contractor shall be dressed uniformly or as otherwise permitted in the contactbetween the City and Contractor. § 6-2.119. Trucks, Routes, and Collection Schedule.
No Solid Waste, Recyclables, or Organic Waste collection truck shall be operated in the City by any person unless the owner thereof has filed the following information in writing with the City:(a) The make. year, description, and license number of all trucks used in the City;(b) The number of trash, Recyclables, and Organic Waste trucks used in the City; Exhibit A-li
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(c) The routes by streets to be followed in the City’, and (d) The days and approximate hours for service on each route in the City. § 6-2.120. Bond.
All rights and privileges of the Contractor set forh are granted pursuant to the provisions of this article and conditioned on the Contractor’s having on deposit with the City Clerk at all times duringthe term of said contract a valid, unexpired bond, approved by the City Attorney, in cash or corporate surety, in favor of the City in the amount set forth in the Contractor’s contract with the City.
§ 6-2.121. Insurance.
Every Contractor authorized to collect and remove Solid Waste, Recyclable Materials, and Organic Waste pursuant to this chapter and every individual operating for hire a collection within the City shall maintain a policy of public liability insurance pursuant to § 1-6.01 and 1-6.02 of the Avalon Municipal Code.
§ 6-2.122. Collection Rates.
No person shall pa’7, nor shall any Contractor charge, more than the rate specified for service for Solid Waste. Recyclable Materials, or Solid Waste collection or disposal or processing as such rate is set forth in the contract between the City and the Contractor or applicable fees adopted by the City Council of the City of Avalon.
§ 6-2.123. Solid Waste Accumulations.
No person shall cause or permit:
(a) Any animal or vegetable matter, tilth, slop, stagnant water, or other waste or matter which is, or which is liable to become, putrid or offensive, or which is, or which is liable to become, a fire menace or a menace to health or safety or an attraction to rodents to accumulate at any Premises for a period in excess of one calendar week, excludingcombustible Solid Waste of salvageable value; (b) Solid waste, Recyclables, or Organic Waste to accumulate at any Premises for a period in excess of 15 days and
(c) The burying or burning of Solid Waste or Recyclables. § 6-2.124. Public Nuisances: Abatement.
The accumulation of Solid Waste. Recyclahies. or Organic Waste by any person beyond the periods specified in this article or in a manner other than as specified in this article is hereby declared to be a nuisance pursuant to the provisions of § 38771 of the Government Code of the Slate. The Council. pursuant to the provisions of § 38773 of the Government Code of the State.
Exhibit A-12
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hereby provides for the summary abatement of such nuisance at the expense of the person creating, causing, or maintaining such nuisance as follows:(a) If the Health Officer shall make a report to the City that a certain person at a certain address is maintaining a nuisance as defined in this section, the City shall, within five days, notifysuch person and the owner of such property in writing of the fact that he or she isconducting a nuisance as defined in this section and requiring him or her, within 10 days, to abate or cause such nuisance to be abated within the legal means as provided for in this article.
(b) If, at the end of such ten-day period, such person has not removed or caused to be abated such nuisance, the City shall have the power and authority to authorize the Contractor, Cityemployees or any City agent to enter the Premises of such person and remove and abatesuch nuisance and charge the City for the cost of the removal and abatement of suchnuisance. (c) Thereafter, if such person shall continue to allow Solid Waste. Recyclables, or Organic Waste to accumulate for periods beyond those specified in this section, the City shall have the power to order the Contractor, City employees or any City agent to continue to enter such Premises and remove and abate such nuisance, charging the City for the cost thereof (d) The charge or cost of the abatement of such nuisance by the City shall constitute a lien against the property occupied by the person maintaining such nuisance and a personalobligation against the owner pursuant to the provisions of 38773 ofthe Government Code of the State.
§ 6-2.125. Rules and Regulations.
The Council may make such rules not inconsistent with the provisions of this article or the contractbetween the City and the Contractor as may be necessary, reasonable, and proper to effect theexpedient, economical, and efficient collection and removal of Solid Wastc Recyclables, andOrganic Waste by the Contractor. § 6-2.126. Breach of Contract.
In the event the Contractor shall breach or fail to perform any of the terms, conditions, orprovisions of this article, or of the contract, or of any resolution made pursuant to the provisionsof this article, the Council may, in its discretion, pursue or use any and all legal or equitableremedies it may have by reason of such breach or failure to perform. § 6-2.127. Construction and Demolition Debris.Construction and demolition debris, as defined in § 6-2.401, shall he disposed of pursuant to the provisions of this chapter to the extent consistent with the provisions of Article 4 of this chapter.
In the event of any conflict or inconsistency, the terms of Article 4 shall control. § 6-2.128. Requirements for Single-Family Generators (Standard Compliance Approach).
Exhibit A-13
6505 9. 00004\344498 83 .3
(A) Single-family Organic Waste Generators shall comply with the following requirements. (1) Subscribe to the City’s Organic Waste collection services. The City shall have the right to review the number and size of a Generatofs Containers to evaluate adequacy of capacityprovided for each type of collection service for proper separation of materials and containment ofmaterials; and single-family Generators shall adjust their service level for their collection services as requested by the City. Generators may additionally manage their Organic Waste by preventingor reducing their Organic Waste. managing Organic Waste through backyard residential composting. and/or using a community composling site.
(2) Participate in the Cit/s Organic Waste collection services by placing designated materials in designated Containers.
(B) City may choose to comply with § 6-2.129 instead of this § 6-2.128. § 6-2.129. Requirements for Single-Family Generators (Performance-Based Compliance Approach).
(A) Single-family Organic Waste Generators shall comply with the following requirements. (I) Be automatically enrolled in the Cit/s integrated waste collection services with a source separated blue Recyclable Materials Container, with a source separated green Organic Waste Container, and with a source separated gray Solid Waste Container, approved by thepublic works director or his or her designee. City shall have the authority to change the minimum required levels of service over time. City shall have the right to review the number, size, and location of a Generator’s Containers to evaluate adequacy of capacity provided for each type of collection service for proper separation of materials and containment of materials: and Generator shall adjust its service level for its collection services as requested b; the City. (2) Participate in the City’s three-Container system for source separated blue Container Recyclable Materials, source separated green Container organic materials, and Gray Container collection services. Generator participation in the collection programs requires thatGenerators place source separated green Container Organic Waste, including Food Waste, in the Green Container; source separated Recyclable Materials in the Blue Container; and Solid Waste in the Gray Container. Generators shall not place materials designated for the Gray Containerinto the Green Container or Blue Container, nor place materials designated for the GreenContainer or Blue Container into the Gray Container. (3) Nothing in this section prohibits a Generator from preventing or reducing waste generation. managing Organic Waste through backyard residential composling. and/or using acommunity composting site, B. City may choose to comply with § 6-2.128 instead of this § 6-2.129.§ 6-2.130. Requirements for Haulers and Facility Operators. (A) Requirements for Haulers.
Exhibit A-14
65 059. 00004\34449 8 83 .3
(1) Haulers shall meet the following requirements and standards as a condition of approval ofa Solid Waste franchise. permit, or other authorization with the City to collect OrganicWaste:
(a) Through written notice to the Cit annually, on or before June 1. identify the facilities to which they will transport Organic Waste, including facilities for source separated Recyclable Materials and source separated green Container Organic Waste. (h) Transport source separated Recyclable Materials, source separated green Container Organic Waste, and mixed waste to a facility, operation. activity, or property that recovers Organic Waste as defined in 14 CCR. Division 7, Chapter 12, and Article 2. (c) Obtain approval from the City to haul Organic Waste, unless transporting source separated Organic Waste to a community composting site or lawfully transportingconstruction and demolition debris. (2) Haulers authorized to collect Organic Waste shall comply with education. equipment, signage. Container-labeling, Container color, contamination monitoring, reporting,and other requirements as specified by their respective permits or other agreements entered intowith the City:. (B) Requirements for Facility Operators and Community Composting Operations. (1) Owners of facilities, operations. and activities that recover Organic Waste. including, but not limited to. compost facilities, in-vessel digestion facilities, and publicl’ -owned treatment works shall, upon the City’s request. provide information regarding available andpotential new or expanded capacitY at their facilities, operations, and activities, including information about throughput and permitted capacity necessary for planning purposes. Entities contacted by the City shall respond within 60 days.
(2) Community eomposting operators, upon the City’s request, shall provide information to the City to support Organic Waste capacity planning, including, but not limited to, an estimate of the amount of Organic Waste anticipated to be handled at the community eomposting operation. Entities contacted by the City shall respond within 60 days. § 6-2.131. Residential Self-Hauler Requirements.
(A) Self-haulers shall source separate all Recyclable Materials and Organic Waste generatedon-site from Solid Waste in a manner consistent with 14 CCR § 18984.1 and 18984.2. or shall haul Organic Waste to a high diversion Organic Waste processing facility. (B) Self-haulers shall haul their source separated Recyclable Materials to a facility that recovers those materials, and shall haul their source separated green Container Organic Waste to a Solid Waste facility, operation. activity, or property that processes or recovers source separatedOrganic Waste. Alternatively, self-haulers may haul Organic Waste to a high diversion Organic Waste processing thcility.
Exhibit A- 15
65 05 9. 00004\34449883 .3
(C) Multi-family Residential Dwellings that qualify as Commercial Businesses must adhere to the additional commercial self-hauler requirements of 6-2.217. (D) A residential Organic Waste Generator that self-hauls Organic Waste is not required to record or report information as othen\ise required by § 6-2.217. § 6-2.132. Inspections and Investigations.(A) City representatives and/or its designated entity, including designees are authorized to conduct inspections and investigations, at random or otherwise, of any collection Container.collection vehicle loads, or transfer, processing. or disposal facility for materials collected from Generators. or source separated materials to confirm compliance with this chapter by OrganicWaste Generators. Commercial Businesses (including Multi-Family Residential Dwellings). property owners. Commercial Edible Food Generators, self-haulers, hauler, Food Recovery Service, and Food Recovery Organizations. subject to applicable laws. This Section does not allow the City to enter the interior of a private residential property for inspection. (B) The regulated entity shall provide or arrange for access during all lnspcctions (with theexception of residential property interiors) and shall cooperate with the City’s employee or itsdesignee during such inspections and investigations. Such inspections and investigations mayinclude confirmation of proper placement of materials in Containers, Edible Food recovery activities, records, or any other requirement described herein. Failure to provide or arrange for:(i) access to an entity’s Premises; or (ii) access to records for any inspection or investigation is aviolation of this chapter and may result in penalties described in § 6-2.133. (C) Any records obtained by the City during its inspections and other reviews shall be subject to the requirements and applicable disclosure exemptions of the Public Records Act as set forth in Government Code § 6250 et seq.
(D) City representatives or its designee are authorized to conduct any inspections or other investigations as reasonably necessary to further the goals of this chapter. subject to applicable laws.(E) City shall receive written complaints from persons regarding an entity that may be potentially non-compliant with SB 1383 Regulations. including receipt of anonymous complaints.
Contractors shall relay to City all written complaints they receive concerning acts or omissions of themselves or another entity that is potentially non-compliant with SB 1383 Regulations. including anonymous complaints.
§ 6-2.133. Violation—Penalties.(A) Violation of any provision of this chapter shall constitute grounds for issuance of a Notice of Violation and assessment of a fine by an enforcement officer, Enforcement actions under thischapter are issuance ofan administrative citation and assessment ofa fine. The procedures set forth in Chapter 1-9 ofthe Avalon Municipal Code shall govern the imposition, enforcement, collection, and review of administrative citations issued to enforce this chapter and any rule or regulationadopted pursuant to this chapter, except as otherwise indicated in this chapter.
Exhibit A- 16
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(B) City may seek all other remedies allowed by law. including civil action or prosecution for an alleged misdemeanor or infraction. City may pursue civil actions in the California courts to seek recovery of unpaid administrative citations.(C) Penalty amounts for violations of Sections 6-2.128 to 6-2.132 are set forth in Section 1-
9.03.D. Appeals Process. Persons receiving an administrative citation containing a penalty for an uncorrected violation may request a hearing to appeal the citation pursuant to Section 1-9.06 ofthe Avalon Municipal Code.
E. Education Period for Non-Compliance. Beginning January 1. 2022 and through December31, 2023. the City will conduct inspections, route reviews or waste evaluations, and compliance reviews, depending upon the type of regulated entity. to determine compliance, and if the Citydetermines that Organic Waste Generator, self-hauler, hauler. Tier One Commercial Edible FoodGenerator. Tier To Commercial Edible Food Generator. Food Recovery Organization. Food Recovery Service, or other entity is not in compliance, it shall provide educational materials to the entity describing its obligations under this chapter and a notice that compliance is required as ofJanuary 1. 2022. and that violations may be subject to administrative civil penalties starting onJanuary 1, 2024.
F. Civil Penalties for Non-Compliance. Beginning January 1, 2024. if the City determines that an Organic Waste Generator. self-hauler, hauler. Tier One or Tier Two Commercial Edible Food Gcnerator, Tier Two Commercial Edible Food Generator, Food Recovery Organization.Food Recovery Scrvice, or other entity is not in compliance with this chapter, it shall document the noncompliance or violation, issue a Notice of Violation. and take enforcement action pursuantto this chapter.
0. This chapter shall he interpreted consistent with the City’s regti1ator authority and shallonly apply to local education agencies and other entities to the extent permitted by law, including SB 1383 Regulations.
Exhibit A-fl
65059.00004\34449883 .3
Article 2. Commercial and Public Place Accumulations, Disposal, and Collection. § 6-2.201. Definitions — Commercial Solid Waste and Recyclables Collection.For the purposes of this article, certain words and phrases used herein are defined as follows:(a) BUSINESS ENTITY — Shall mean any business, proprietorship, firm, partnership, person in representative or fiduciary capacity, association, venture, trust, corporation which isorganized for financial gain or for profit, or nonprofit corporation or entity, including allcommercial, industrial and institutional entities, and shall include any owner, agent,employee or subcontractor of such Business Entity. (b) COMMERCIAL or COMMERCIAL BUSINESS — Shall mean a business, industrial. commercial establishment, or construction site, and any multiple-family, ResidentialDwelling with five (5) units. It further includes such other establishments as the CityCouncil may designate as coming under the classification of Commercial Businesses. (c) COMMERCIAL BINS — Shall mean bins provided by a Contractor, usually three cubic yards or greater in capacity and designed for the deposit of Solid Waste, including Solid Waste, Recyclable Materials, and Organic Waste, charged at commercial rates. (d) COMMERCIAL PREMISES — Shall mean all Premises in the City, other than residential Premises, where Solid Waste. Recyclable Materials, and Organic Waste are generated oraccumulated. The term “Commercial Premises” includes, but is not limited to, stores;restaurants; rooming houses; hotels; motels; office buildings; department stores;manufacturing, processing or assembling shops or plants; hospitals: clinics; and nursinghomes. (e) COOKING OIL — Shall mean any and all types of oil used to cook or fry food, also referred to as waste vegetable oil.
(0 COMPOSTABLE FOOD WASTE — Shall mean fruits, vcgetables, meat poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. food soiled waxedcardboard, napkins, paper towels, paper plates, paper milk cartons, tea bags, coffeegrounds/filters, wooden crates and sawdust. (g) FOOD RECOVERY — Shall mean actions to collect and distribute food for human consumption that otherwise would he disposed, or as otherwise defined in 14 CCR § 1 8982(a)(24).
(h) FOOD RECOVERY ORGANIZATION — Shall mean an entity that engages in the collection or receipt of Edible Food from Commercial Edible Food Generators anddistributes that Edible Food to the public for food recovery either directly or through otherentities or as otherwise defined in 14 CCR § I 8982(a)(25). including, but not limited to:
(1) A food bank as defined in Section 113783 of the Health and Safety Code; Exhibit A-18
65059.00004\34449883.3
(2) A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code: and.
(3) A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.
(i) FOOD RECOVERY SERVICE — Shall mean a person or entity that coLlects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organizationor other entities for food recovery, or as otherwise defined in 14 CCR § I 8982(a)(26).
U) GROCERY STORE — Shall mean a store primarily engaged in the retail sale of canned food; dry goods; fresh fruits and vegetables; fresh meats, fish, and poultry; and any area that is not separately owned within the store where the food is prepared and served, including a bakery, deli, and meat and seafood departments, or as otherwise defined in 14CCR § 18982(a)(30). (k) LARGE EVENT — Shall mean an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2.000 individuals per day of operation of the event, at a Location that includes, but is not limited to. a public. nonprofit. or privately owned park. parking lot. golf course. street system. or other open space when being used for an event. (1) LARGE VENUE — Shall mean a permanent venue facility that annually seats or serves an average of more than 2.000 individuals within the grounds of the thcility per day ofoperation of the venue facility. A venue fhcility includes, hut is not limited te. a public. nonprofit. or privately owned or operated stadium, amphitheater. arena. hall. amusementpark, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground. museum, theater, or other public attraction facility. A site under common ownership or control that includes more than one large venue that is contiguouswith other large venues in the site, is a single large venue. (m) LOCAL EDUCATION AGENCY — Shall mean a school district, charter school, or county office of education that is not subject to the control of City or County regulations related to Solid Waste, or as otherwise defined in 14 CCR § 18982(a)(40). (n) PLACE OF BUSINESS — Shall mean each structure or unit primarily used for business purposes.
(0) RECYCLING COORDINATOR — Shall mean the City employee or agent designated as such by the Council or City Manager.
(p) SUPERMARKET— Shall mean a full-line, self-service retail store with gross annual sales of two million dollars (52.000.000). or more, and which sells a line of dry grocery. cannedgoods. or nonfood items and some perishable items, or as otherwise defined in 14 CCR § I 8982(a)(7 I). (q) TIER ONE COMMERCIAL EDIBLE FOOD GENERATOR — Shall mean a Commercial Edible Food Generator that is one of the following:
Exhibit A-19
6505900004\34449883.3
(1) Supermarket.
(2) Grocery store with a total facility size equal to or greater than 10.000 square feet.
(3) Food service provider.
(4) Food distributor.
(5) Wholesale food vendor.
(r) TIER TWO COMMERCIAL EDIBLE FOOD GENERATOR — Shall mean a Commercial Edible Food Generator that is one of the following:
(1) Restaurant with 250 or more seats. or a total facility size cqual to or greater than 5,000 square feet.
(2) Hotel with an on-site food facility and 200 or more rooms. (3) Health facility with an on-site food facility and 100 or more beds. (4) Large venue.
(5) Large event.
(6) A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5.000 square feet. (7) A local education agency facility with an on-site food facility. (s) WHOLESALE FOOD VENDOR— Shall mean a business or establishment engaged in the merchant wholesale distribution of food. where food (including fruits and vegetables) is received, shipped. stored, prepared for distribution to a retailer, warehouse, distributor, orother destination, or as otherwise defined in 14 CCR § I 89852(a)(76). § 6-2.202. Commercial Solid Waste and Recyclable Collection.
All business entities shall receive commercial Solid Waste, Recyclables, and Organic Waste collection services, and a charge therefor shall be collected at such rates as may be established by the Council. Unless otherwise provided for in this article or chapter. business entities shall receive Solid Waste, Recyclables. and Organic Waste collection services in the same manner and subject to the same terms and conditions as residential Premises as provided for in Article I of this chapter.In the event the City contracts with one or more Contractors to provide for commercial Solid Waste. Recyclables. and Organic Waste collection services to business entities at each place of business, the Contractor, which may or may not be the same Contractor(s) providing service under Article I of this chapter. shall provide services to business entities at each place of business in the same manner as collection services are provided to residential Premises in Article 1 of this chapter.
Exhibit A-20
6505900004\34449883,3
The provisions of Article I of this chapter shall apply to commercial Solid Waste, Recyclables. and Organic Waste collection, generation, and disposal unless otherwise provided in this article. § 6-2.203. Used Cooking Oil Receptacles.
All business entities which utilize cooking oil for cooking or frying of food shall place all usedoil in a watertight Container clearly bearing the name of the establishment, having a tight fittinglid, and which, when fitted, shall not exceed 50 pounds of weight. § 6-2.204. Solid Waste, Recyclable Material, and Organic Waste Containers.
Except for those business entities which have been assigned designated recycling bins by theCity. every person owning or operating any restaurant. cafe, bar, hotel, or business establishment of any kind shall provide sufficient Containers suitable and adequate to keep in separate Containers (1) garbage: (2) cardboard boxes. plastic and paper; (3) glass: and (4) compostahlc food waste, in between collection periods. Each Container shall be watertight with tight fittinglids. Each Container shall be provided with suitable bales or handles. Those business entities which have been assigned designated recycling bins by the City shall place all waste in the proper bins according to rules and regulations adopted by the City specifying the materials whichare to be placed in such bins.
Notwithstanding the foregoing. business entities shall comply with the City’s election of thc SB 1383-compliant provisions of either § 6-2.212 or § 6-2.213. respectively. § 6-2.205. Disposal of Boxes.
Any Business Entity having any pasteboard or corrugated paper boxes shall break them up so that the material lies flat and place the materials in designated Containers as specified in this article.
§ 6-2.206. Inspection of Containers Authorized.The Health Officer shall have the right to inspect all Containers used by and the place of anyBusiness Entity at any reasonable time during the entities regular hours of operation 01’ any day for the purpose of determining whether the provisions of this article are being complied with. § 6-2.207. Placement for Collection: Excessive Quantities.All Solid Waste. Recyclables. and Organic Waste shall be placed in Containers or Containers bybusiness entities as specified in this article or permitted in the contract between the City aridContractor. Any Solid Waste, Recyclables or Organic Waste in excess of the limits set forth in the contract between the City and Contractor or otherwise permitted by the City shall be consideredexcessive. In no event shall any such excess Solid Waste. Recyclables. or Organic Waste he placed on any street. alley, or public way awaiting removal without first having obtained permission from the City to do so.
§ 6-2.208. Placement and Removal of Containers.
Exhibit A-2 I
65 059. 00004\34449883 .3
No Business Entity shall place a Container outside for collection more than 12 hours prior to the day of collection. No person having the control of any oil container as described in § 6-2.203 shall place the same outside for collection, and only between the hours of 9:00 p.m. the day before collection and 9:30 am. the day of the collection. Immediately after collection, each Container shall he removed from the street, alley or public way and Naced on the place of business having the charge or control thereof
§ 6-2.209. Collection Rates: Excessive Quantities.
If any Business Entity requires Collection service in quantities in excess of the facilities provided for regular routine collections, or in the event such Solid Waste. Recyclables, or Organic Waste are not placed in proper Containers and at proper locations, an additional charge shall he made therefor at a rate as specified in a resolution of the Council. in addition to any penalties or fines which may be imposed pursuant to this article.
§ 6-2.2 10. Mandatory Disposal of Commercial Waste.
It shall be unlawful for any owner, agent. employee or subcontractor of a Business Entity to fail tosource separate materials generated by such Business Entity or to otherwise fail to place such separated materials in designated Containers as specified in this chapter. § 6-2.211. Unlawful Commingling of Waste and Unlawful Disposal of Specified Items and Materials.
It shall be unlawful for any owner, agent, employee or subcontractor of a Business Entity to combine designated. unsoiled Recyclables or Organic Waste with Solid Waste. It shall be unlawful for any owner, agent. employee, or subcontractor of a Business Entity to dispose or attempt to dispose of appliances, furniture and furnishings, televisions, monitors, computer eqtnpment andrelated electronics, construction materials and debris, including but not limited to concrete, plaster. asphalt. at any place or time other than directly to the landfill facility or as otherwise directed bythe City or its Contractor. § 6-2.212. Requirements for Commercial Businesses (Standard Compliance Approach). (A) Generators that are Commercial Businesses, including applicable Multi-Family ResidentialDwellings, shall:
(1) Subscribe to the City’s three-Container collection services and comply with requirements of those services as described below in § 6-2.212(A)(2). The City shall have the right to review the number and size of a Generator’s Containers and frequency of colLection to evaluate adequacy of capacity provided for each type of collection service for proper separation of materials and containment of materials:and, Commercial Businesses shall adiust their service level for their collection services as requested by the City.
(2) Participate in the City’s three-Container collection service(s) by placing source separated green Container Organic Waste, including Food Waste, in the GreenContainer; source separated Recyclable Materials in the Blue Container; and Solid Exhibit A-22
65059.00004\34449883.3
Waste in the Gray Container. Generator shall not place materials designated for the Gray Container into the Green Container or Blue Container, nor place materials designated for the Green Container or Blue Container into the Gray Container. (3) Supply and allow access to an adequate number, size, and location of collection Containers with sufficient labels or colors (conforming with Section § 6- 2.212(A)(4)) for employees, contractors, tenants, and customers, consistent with the city’s Blue Container, Green Container, and Gray Container collection serviceor. if self-hauling, per the Commercial Businesses’ instructions to support its compliance with its self-haul program. in accordance with § 6-2.217. (4) Excluding Multi-Family Residential Dwellings, provide Containers for the collection of source separated Organic Waste and source separated Recyclable Materials in all indoor and outdoor areas where disposal Containers are provided for customers. for materials generated by that business. Such Containers do not need to be provided in restrooms. If a Commercial Business does not generate any of the materials that would be collected in one type of Container, then the business does not have to provide that particular Container in all areas where disposalContainers are provided for customers. Pursuant to 14 CCR § 18984.9(b), the Containers provided by the business shall have either:
(a) A body or lid that conforms with the Container colors provided through the collection service provided by City, with either lids conforming to the color requirements or bodies conforming to the color requirements or both lids and bodies conforming to color requirements. A Commercial Business isnot required to replace functional Containers, including Containers purchased prior to January 1, 2022, that do not comply with therequirements of the subsection prior to the end of the useful life of those Containers, or prior to January 1,2036. whichever comes first. (b) Container labels that include language or graphic images. or both, indicating the primary material accepted and the primary materials prohibited in that Container, or Containers with imprinted text or graphic images that indicate the primary materials accepted and primary materials prohibited in the Container. Pursuant 14 CCR § 18984.8, the Container labeling requirements are required on new Containers commencing January 1, 2022. (5) Multi-family Residential Dwellings are not required to comply with Container placement requirements or labeling requirements in § 6-2.21 2(A)(4) pursuant to 14 CCR § 18984.9(b). (6) To the extent practical through education, training. Inspection, and/or other measures, excluding Multi-Family Residential Dwellings, prohibit employees from placing materials in a Container not designated for those materials in accordance with § 6-2.21 2(A)(2). or ifrecycling organics onsite or self-hauling under § 6-2.217per the Commercial Businesses’ instructions to support its compliance with its onsite recycling or self-haul program.
Exhibit A-23
65059 00004\34449883.3
(7) Excluding Multi-Family Residential Dwellings, periodically inspect Containers tbr Container Contamination and inform employees if Containers arc contaminatedand of the requirements to keep contaminants out of those Containers pursuant to 14 CCR § I 8984.9(b)(3;.
(8) Annually provide information to employees, contractors, tenants, and customers about Organic Waste recovery requirements and about proper sorting Organic Waste Recyclable Materials.
(9) Provide education information before or within fourteen (14) days of occupation of the Premises to new tenants that describes requirements to keep Organic Waste and Recyclable Materials separate from Solid Waste (when applicable) and the location of Containers and the rules governing their use at each property. (10) Provide or arrange access for the City or its agent to their properties during all inspections conducted in accordance with § 6-2.218 to confirm compliance with the requirements of this chapter.
(11) If a Commercial Business wants to self-haul, it must meet the self-hauler requirements in § 6-2.2 17.
(12) Nothing in this section prohibits a Generator from preventing or reducing Organic Waste generation, managing Organic Waste on site, or using a community coniposting site.
(13) Commercial businesses that are Tier One or Tier Two Commercial Edible Food Generators shall comply with food recovery requirements, pursuant to § 6-2.215. (B) City may choose to comply with § 6-2.213 instead of this § 6-2.212. § 6-2.213. Requirements for Commercial Businesses (Performance-Based ComplianceApproach). (A) Commercial businesses, which includes Multi-Family Residential Dwellings, shall:
(I) With the exception of self-haulers subject to § 6-2.217, he automatically enrolled in the City’s three-Container collection services with a source separated blue Recyclable Materials Container and a source separated green Organic Waste Container, approved by the public works director or his or her designee. The Cityshall have the authority to change the minimum required service levels over time. (2) With the exception of self-haulers subject to § 6-2,217. participate in the City’s three-Container collection services by placing source separated green Container Organic Waste, including Food Waste, in the Green Container; source separated Recyclable Materials in the Blue Container; and Solid Waste in the Gray Container.
Generator shall not place materials designated for the Gray Container into theGreen Container or Blue Container, nor place materials designated for the GreenContainer or Blue Container into the Gray Container.
Exhibit A-24
65059.00004\34449883.3
(3) Supply and allow access to adequate number, size, and location of collection Containers with sufficient labels or colors for employees. contractors, tenants, and customers. consistent with the City’s three-Container collection services. The Containers provided by the Commercial Business must have either:
(a) A body or lid that confirms with the Container colors provided through the collection service provided by City, with either lids conforming to the color requirements or bodies conforming to the color requirements or both lidsand bodies conforming to color requirements. A Commercial Business is not required to replace functional Containers, including Containers purchased prior to January 1, 2022. that do not comply with therequirements of the subsection prior to the end of the useful life of those Containers, or prior to January 1. 2036. whichever comes first. (b) Container labels that include language or graphic images, or both, indicating the primary material accepted and the primary materials prohibited in that Container, or Containers with imprinted text or graphic images that indicate the primary materials accepted and primary materials prohibited in theContainer. Pursuant 14 CCR § 18984.8, the Container labeling requirements are required on new Containers commencing January 1, 2022. (4) Excluding Multi-Family Residential Dwellings, provide Containers for the collection of source separated Organic Waste, and source separated RecyclableMaterials in all indoor and outdoor areas where disposal Containers are provided for customers, for materials generated by that business. Such Containers do notneed to be provided in restrooms. If a Commercial Business does not generate any of the materials that would he collected in one type of Container. then the businessdoes not have to provide that particular Container in all areas where disposal Containers are provided for customers.
(5) Excluding Multi-Family Residential Dwellings, prohibit employees from placing materials in a Container not designated for those materials to the extent practical through education, training. Inspection. and/or other measures. (6) Excluding Multi-Family Residential Dwellings, periodically inspect Blue Containers, Green Containers, and Gray Containers for Container Contaminationand inform employees if Containers are contaminated and of the requirements to keep contaminants out of those Containers.
(7) Annually provide information to employees, contractors, tenants, and customers about Organic Waste recovery requirements and about proper soiling Organic Waste and Recyclable Materials. This information shall also be provided to new tenants within 14 days of occupation of the Premises.
(8) Provide or arrange access for the City or its agents to their properties during all inspections to confirm compliance with SB 1383 Regulations. (B) City may choose to comply with Section § 6-2.212 instead of this § 6-2.213.
Exhibit A-25
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§ 6-2.214. Waivers for Generators.
(A) De Minimis Waivers. The City may waive a Commercial Business’s obligation (including that of a Multi-Family Residential Dwelling) to comply with sonic or all of the Organic Waste requirements if the Commercial Business provides documentation that the business generatesbelow a certain amount of Organic Waste material as described in § 6-2.2l4(A)(2) below.Commercial businesses requesting a de minimis waiver shall:
(1) Submit an application specifying the services from which they are requesting a waiver, and provide documentation as noted in Section § 6-2.2l4(A)(2) below. (2) Provide documentation that either:
(a) The Commercial Business’s total Solid Waste collection service is two cubic yards or more per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than 20 gallons per weekper applicable Container of the business’s total waste: or (h) The Commercial Business’s total Solid Waste collection service is less than two cubic yards per week and Organic Waste subject to collection in a Blue Containcr or Green Container comprises less than 10 gallons per week per applicable Container of the business’s total waste.
(3) Notify City ifany circumstances change such that Commercial Business’s Organic Waste exceeds the threshold required for the de minimis waiver, in which case the waiver will be rescinded.
(4) Provide written verification of eligibility for the de minimis waiver every 5 years. (B) Physical Space Waivers. The City may waive a Commercial Business’s or propertyowner’s obligations (including those of Multi-Family Residential Dwellings) to comply with someor all of the Recyclable Materials and/or Organic Waste collection service requirements ifthe Cityhas evidence from its own staff a hauler, a licensed architect. or a licensed engineer demonstrating that the Premises lacks adequate space for the collection Containers otherwise required forcompliance with the Organic Waste collection requirements. A Commercial Business or propertyowner may request and maintain a physical space waiver through the following process:
(1) Submit an application form specifying the type(s) of collection services from which they are requesting a compliance waiver;
(2) Provide documentation that the Preniises lacks adequate space for Blue Containers and/or Green Containers. including documentation from applicant’s hauler, licensed architect, or licensed engineer; and
(3) Provide written verification to the City that it remains eligible for the physical space waiver every tive years thereafter.
Exhibit A-26
6505 9,00004’34449883 .3
(C) Additional Waivers. The City may provide any additional waivers of the requirements of this chapter to the extent permitted by applicable law. The public works director or his or her designee shall be responsible for determining the grounds for a waiver, its scope, and appropriateadministration (D) Review and Approval of Waivers by City. Review and approval of waivers will be theresponsibility of the public works director or his or her designee. § 6-2.215. Requirements for Commercial Edible Food Generators. (A) Tier One Commercial Edible Food Generators must comply with the requirements of this section commencing January 1. 2022. and Tier Two Commercial Edible Food Generators must comply commencing January 1. 2024.
(B) Large venue or large event operators not providing food services. hut allowing for food to be provided by others, shall require food facilities operating at the large venue or large event to comply with the requirements of this section. commencing January 1, 2024, (C) Commercial Edible Food Generators shall comply with the following requirements:
(1) Shall not intentionally spoil Edible Food that is capable of being recovered by a Food Recovery Organization or a Food Recovery Service.
(2) Allow the City’s designated enforcement entity or designated third party enforcement entity to access the Premises and to review records pursuant to 14 CCR § 18991.4.
(3) Keep records that include the following information, or as otherwise specified in 14CCR 18991.4:
(a) A list of each Food Recovery Service or organization that collections or receives its Edible Food pursuant to a contract or written agreement established under 14 CCR § 18991,3(b).
(h) A copy of all contracts or written agreements established under H CCR § 18991.3(b). (c) A record of the following information for each of those Food Recovery Services or Food Recovery Organizations:
(i) The name, address, and contact information of the Food Recovery Service or Food Recovery Organization.
(ii) The types of food that will be collected by, or self-hauled to. the Food Recovery Service or Food Recovery Organization.
(iii) The established frequency that food will be collected or self-hauled.
Exhibit A-27
6505900004\34449883 .3
(iv) The quantity of food, measured in pounds recovered per month, collected or self-hauled to a Food Recovery Service or Food Recovery Organization for food recovery.
(d) Nothing in this chapter shall be construed to limit or conflict with the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act, or share table and school food donation guidance pursuant to Senate Bill 557 (Chapter 285. Statutes of 2017).
§ 6-2.216. Requirements for Food Recovery Organizations and Sen’ices. (A) Food recovery services collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR § 18991.3(b). shall maintain the following records. or as otherwise specified by 14 CCR § 1899 1.5(a)(1):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the service collects Edible Food.
(2) The quantity in pounds of Edible Food collected from each Commercial Edible Food Generator per month.
(3) The quantity in pounds of Edible Food transported to each Food Recovery Organization per month.
(4) The name, address, and contact information for each Food Recovery Organization for which that the Food Recovery Service transports Edible Food for food recovery. (B) Food recovery organizations collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR § 18991.3(b). shall maintain the following records. or as otherwise specitied by 14 CCR§l8991.5(a)(2):
(1) The nanie. address. and contact information for each Commercial Edible Food Generator from which the organization receives Edible Food. (2) The quantity in pounds of Edible Food collected from each Commercial Edible Food Generator per month.
(3) The name, address, and contact information for each Food Recovery Service from which the organization receives Edible Food for food recovery. (C) Food recovery organizations and Food Recovery Services that have their primary address physically located in the City and contract or have written agreements with one or more Commercial Edible Food Generators pursuant to 14 CCR § 18991.3(b) shall, no later than March 1, July 1, and September 1 of each year, report to the City in which they are located the total pounds of Edible Food recovered in the previous calendar year from the Tier One and Tier Two Exhibit A-28
65059.0000404449883.3
Commercial Edible Food Generators with which they have established a contract or written agreement pursuant to 14 CCR § 18991.3(b).
(D) Food Recovery Capacity Planning. In order to support Edible Food recovery capacity planning assessments and other studies. Food Recovery Services and Food Recovery Organizations operating in the City shall, upon request. provide information and consultation tothe City regarding existing or proposed new or expanded food recovery capacity that could be accessed by the City and its Commercial Edible Food Generators. A Food Recovery Service or Food Recovery Organization contacted by the City shall respond to such request for information within 60 days, or fewer days if the City requests a shorter timeframe. § 6-2.2 17. Commercial Self-Hauler Requirements.
(A) Self-haulers shall source separate all Recyclable Materials and Organic Waste generatedon-site from Solid Waste in a manner consistent with 14 CCR § 18984.1 and 18984.2, or shall haul Organic Waste to a high diversion Organic Waste processing facility. (B) Self-haulers shall haul their source separated Recyclable Materials to a facility that recovers those materials, and shall haul their Organic Waste to a facility, operation, activity, or property that processes or recovers source separated Organic Waste. Alternatively, self-haulersmay haul Organic Waste to a high diversion Organic Waste processing facility.
C. Self-haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall keep a record of the amount of Organic Waste delivered to each Solid Waste facility. operation. activity, or property that processes or recovers Organic Waste; this record shall he subject to inspection by the City. The records shall include the following information:
(I) Delivery receipts and weight tickets from the entity accepting the waste; (2) The amount of material in cubic yards or tons transported by the Generator to each entity; and
(3) If the material is transported to an entity that does not have scales on-site, or employs scales incapable of weighing the self-haulers vehicle in a manner that allows it to determine the weight of materials received, the self-hauler is not required to record the weight of the material hut shall keep a record of the entities that received the Organic Waste. (D) Self-haulers that are Commercial Businesses (including Multi-Family self-haulers) shallprovide information collected in § 6-2.217(C) to the City if requested. § 6-2.2 18. Inspections and Investigations.(A) City representatives and/or its designated entity. including designees are authorized to conduct inspections and investigations, at random or otherwise, of any collection Container,collection vehicle loads, or transfer, processing. or disposal facility for materials collected from Generators, or source separated materials to confirm compliance with this chapter by- Organic Waste Generators. Commercial Businesses (including Multi-Family Residential Dwellings). property owners, Commercial Edible Food Generators, self-haulers, hauler, Food Recovery Exhibit A-29
65059. 00004\34449883 .3
Service, and Food Recovery Organizations, subject to applicable laws. This Section does not allow the City to enter the interior of a private residential property for Inspection. (B) The regulated entity shall provide or arrange for access during all Inspections (with the exception of residential property interiors) and shall cooperate with the City’s employee or itsdesignee during such inspections and investigations. Such inspections and Investigations may include confirmation of proper placement of materials in Containers, Edible Food recovery activities, records, or any other requirement described herein. Failure to provide or arrange for:(i) access to an entity’s Premises; or (ii) access to records for any inspection or investigation is aviolation of this chapter and may result in penalties described in § 6-2.2 19.(C) Any records obtained by the City during its inspections and other reviews shall be subjectto the requirements and applicable disclosure exemptions of the Public Records Act as set forth inGovernment Code § 6250 et seq.(D) City representatives or its designee are authorized to conduct any inspections or other investigations as reasonably necessary to further the goals of this chapter, subject to applicablelaws. (E) City shall receive written complaints from persons regarding an entity that may hepotentially non-compliant with SB 1383 Regulations, including receipt of anonymous complaints.Contractors shall relay to City all written complaints they receive concerning acts or omissions ofthemselves or another entity that is potentially non-compliant with SB 1383 Regulations. includinganonymous complaints. § 6-2.2 19. Penalties for Violations.
(a) Violation of any provision of this chapter shall constitute grounds for issuance of a Notice of Violation and assessment of a fine by an enforcement officer. Enforcement actions under this chapter are issuance of an administrative citation and assessment of a fine. Theprocedures set forth in Section 1-9 of the Avalon Municipal Code shall govern the imposition, enforcement, collection, and review of administrative citations issued toenforce this chapter and any rule or regulation adopted pursuant to this chapter, except asotherwise indicated in this chapter. (b) City may seek all other remedies allowed by law, including civil action or prosecution for an alleged misdemeanor or infraction. City may pursue civil actions in the California courts to seek recovery of unpaid administrative citations.
(c) Penalty amounts for violations of Sections 6-2.202 to 6-2.218 are set forth in Section 1-
9.03. (e) Appeals Process. Persons receiving an administrative citation containing a penalty for an uncorrected violation may request a hearing to appeal the citation pursuant to Section 1-9.06 of the Avalon Municipal Code. (f) Alternative Enforcement. The provisions of this section do not and shall not be construed as limiting the City’s ability to enforce violations under other sections of this chapter. In Exhibit A-30
65059.00004\34449883.3
addition, any Business Entity permitting Solid Waste, Recyclables. or Organic Waste to remain at the place of business beyond the lime periods set forth in Article I forresidential Premises shall be subject to the nuisance abatement procedures provided in § 6-2. 124.
Exhibit A-3 I
65059,00004\34449883.3
Article 3. Disposal of Hazardous Waste.
§ 6-2.301. Definitions.
As used in this article, the following words and phrases shall be defined as follows:(a) HAZARDOUS MATERIALS — Shall mean any hazardous or toxic substance, material, or waste which is or becomes subject to regulation as such by any California state agency or the United States and includes any material or substance that is any of the following:
(1) A hazardous substance, as defined in § 25316 of the Health and Safety Code.(2) Hazardous material, as defined in subdivision (j) of* 25501 of the Health and Safety Code.
(3) Acutely Hazardous Material, as defined in subdivision (a) of 25532 of the Health and Safety Code.
(4) Hazardous Waste, as defined in § 25117 of the Health and Safety Code.(5) Extremely hazardous waste, as defined in § 25115 of the 1-Iealth and Safety Code.(6) Petroleum.(7) Asbestos.(8) Designated as a hazardous substance for purposes of § 311 of the Federal Water Pollution Control Act.
(9) Hazardous waste, as defined by subsection (5) of 1004 of the Federal Resource Conservation and Recovery Act of 1976.
(10) A hazardous substance, as defined by subsection (14) of 101 of the Federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980.
(11) A regulated substance, as defined by subsection (2) of 9001 of the Federal Solid Waste Disposal Act.
(b) CERTIFIED HAZARDOUS WASTE FACILITY — Shall mean a facility owned and operated by the City or its designee which is certified to receive and dispose of HazardousMaterials. (c) CONSOLIDATED TRANSPORTER — Shall mean a hazardous waste transporter registered pursuant to Health and Safety Code § 25165 who uses the consolidatedmanifesting procedures set forth in Health and Safety Code § 25160.2. (d) DISPOSAL — Means either of the following:
Exhibit A-32
65 05 900004\34449883 .3
(1) The discharge, deposit, injection, dumping. spilling, leaking, or placing of any waste so that the waste or any constituent of the waste is or may be emitted intothe air or discharged into or on any land or waters, including groundwaters, ormay otherwise enter the environment. (2) The abandonment of any waste.
§ 6-2.302. Disposal of Hazardous Materials.It shall be unlawful to dispose of any Hazardous Material except by deposit with an authorized agent at a certified hazardous waste facility or by delivery to a consolidated transporter. § 6-2.303. Penalty for Violations.
Violations of any provision of this article by any person or entity, whether as principal, agent,employee or otherwise, shall be prosecuted as an infraction or a misdemeanor in the discretion ofthe prosecuting authority.
Exhibit A-33
65059.00004\34449883.3
Article 4. Disposal of Construction and Demolition Debris. § 6-2.401. Definitions.(a) C&D — Shall mean construction and demolition.(b) CONSTRUCTION AND DEMOLITION DEBRIS or C&D DEBRIS — Shall mean Solid Waste that is a portion ofthe waste stream, defined as “construction and demolition wastes” in Title 14 of California Code of Regulations, § 17225.15, and shall mean commingled andseparated materials that result from construction work, that are not hazardous, as definedin Article 3 of this chapter, and that contain minor amounts of putrescible material of less than 1% per load deposited for disposal at the City landfill or into an approved waste Container.
(c) CONSTRUCTION MATERIALS — Shall mean and include, but is not limited to, building materials, packaging. and rubble resulting from construction, remodeling, repair and demolition operations on pavements, parking lots, roads, residential and commercial buildings and other structures.
(d) UNSEPARATED FOR REUSE — Shall mean C&D materials which have not been cut to size and separated for reuse or disposal in accordance with the standards adopted by theCity’s authorized waste Contractor. § 6-2.402. Prohibition of Disposal of C&D Materials at Landfill.
The City’s authorized waste Contractor shall adopt policies and procedures consistent with thisarticle to prevent the disposal of C&D debris at the landfill. § 6-2.403. Collection and Hauling of C&D Debris.
All C&D materials generated in the City shall be either (1) separated for reuse in accordancewith the standards adopted by the City’s authorized waste Contractor, transported for disposal atan approved and certified mainland disposal site by the City’s authorized waste Contractor, thecharge for \ktich shall be set by resolution of the City Council and collected by the City’sauthorized waste Contractor, or (2) directly transported by the Generator, owner, or Contractor for disposal at an approved and certified mainland disposal site at the sole expense of the Generator, owner, or Contractor. For purposes of this section, “Contractor” refers to a licensedContractor transporting C&D Debris as an incidental part of its work, and not the City’sauthorized waste Contractors. § 6-2.404. Diversion Requirement.
All applicants involved in C&D projects in or with the City must divert sixty-five percent (65%)of all C&D waste generated at a site to a lawful waste processing or recycling facility capable ofreceiving C&D materials for potential reuse under the SB 1383 Regulations. § 6-2.405. Penalty for Violations.
Exhibit A-34
65059.0000434449883.3
Violations of any provision of this article by any person or entity, whether as principal, agent, employee or otherwise, shall be prosecuted as an infraction or a misdemeanor in the discretion ofthe prosecuting authority.
Exhibit A-35
65059. 00004\34449883 .3
1/12/22, 3:35 PM City of Avalon, CA Ecode36O
City of twa/on, CA
Vvednesday. Januaiy 12. 2022
Chapter 1-9. Administrative Citations
§ 1-9.03. Authority.
[ 1, Ord. 1135-14, eff. January 1,2015]
(a) Any responsible person violating any provision of the Avalon Municipal Code, its adopted codes, its regulations or any applicable State code, may be issued an Administrative Citation by an Enforcement Officer as provided in this chapter. A violation of this Code includes, but is not limited to, all violations of the Avalon v1unicipal Code, the Uniform Codes adopted by the City Council,failing to comply with any condition imposed by any entitlement, permit, agreement or environmental document issued or approved under the provisions of this Code. (b) Each and every day a violation of the Code, adopted code or applicable State code exists, constitutes a separate and distinct offense.
(c) A civil fine shall be assessed by means of an Administrative Citation issued by an Enforcement Officer and shall be payable directly to the City of Avalon. (d) Fines shall be assessed in the amounts specified by the Avalon Municipal Code, Resolutions of the City Council, or where no amount is specifically identified in the Avalon Municipal Code or Resolution, the fines are as follows:
(1) A fine not exceeding $100 for a first violation;
(2) A fine not exceeding S200 for a second violation of the same provision or permit within one year from the date of the first violation;
(3) A fine not exceeding $500 for each additional violation of the same ordinance or permit within one year from the date of the first violation.
(e) Each Administrative Citation shall contain the following information; (1) The name of the person charged with any violation of the Code. (2) The date or dates on which the person violated the Code.(3) The section or sections of the Code so violated. (4) The location where the violation occurred.
(5) The amount of the fine imposed or to be imposed for each violation of the Code.(6) In the case of a non-emergency health or safety violation, the amount of time the person charged with the violation of the Code has to correct or otherwise remedy the violation prior tothe tine becoming effective. (7) A notice of the procedure to request an administrative hearing to contest the citation. (8) The amount of the proposed fine for each violation listed in the citation. (9) The name and signature of the person who issued the citation. https:/Iocode36O.ccm/print!AV4054?guid=3589672235896743,35896148 1 ( 1/12/22, 3:35 PM City oMvalon, CA Ecoda380
(10) The date the citation is issued.
(11) Any other information deemed necessary by the City Manager or Enforcement Officer for enforcement or collection purposes.
(f) If the violation of the Code is for a non-emergency health or safety violation, a reasonable period of time of at least 30 days shall be provided in writing to the person responsible for the nonemergency health or safety violation to correct or otherwise remedy the violation prior to the imposition of a civil fine. If the violation is not corrected by the time noted in the notice! the civil fine shall immediately become due and payable.
§ 1-9.04. Payment and Collection of Fines.
[ 1, Ord. 1135-14, eff. January 1,2015]
(a) Payment of a civil fine assessed for a violation of this chapter shall be due within 21 days from the date of issuance of the citation and shall be in the form of check or money order made payable to the City of Avalon. The citation number shall be designated on the check or money order. (1) Unless the citation requires personal delivery of civil fine payment pursuant to § 1-9.04(a)(2) below, payment shall be mailed to: City of Avalon Finance Department, 410 Avalon Canyon Road, RO. Box 707, Avalon, California, 90704.
(2) Where a citation expressly requires personal delivery of civil fine payment, payment shall be personally delivered by the responsible person to: City Hall, 410 Avalon Canyon Road, Avalon, California, 90704.
(b) Payment of any fine or fines shall not excuse the responsible person from complying with the provision of the Code so violated. The issuance of a citation or payment of any fine, or both, shallnot bar the City from instituting any other enforcement action or remedy to obtain compliance with the provisions of the Code so violated, including the issuance of additional citations. § 1-9.05. Failure to Pay Administrative Fines.
[ 1, Ord. 1135-14, eff. January 1,2015]
(a) The failure of any person to pay the civil fines assessed by an Administrative Citation within the time specified may result in the matter being referred to the City Attorney to file a claim and/or initiate collection efforts pursuant to § 1-2.07,
(b) Any person who fails to pay to the City any fine imposed pursuant to this chapter on or before the date that fine is due also shall be liable for the payment of a late payment charge in the amount of$25 plus interest at the maximurr rate permitted by law. https:f/ecode36O.com/print!AV4054?guid35896722,35896743,35896748
CITY OF AVALON CITY COUNCIL
MEETING DATE: January 18, 2022 AGENDA ITEM: (9
ORIGINATING DEP: Administration CITY MANAGER:________
PREPARED BY: Devin Hart, Administrative Analyst
SUBJECT: CalRecycle SB 1383 Local Assistants Grant Program Resolution RECOMMENDED ACTION(S): Adopt a resolution authorizing the City Manager to execute all documents necessary to secure funds and implement a potential CalRecycle grant to support implementation of SB1383.
REPORT SUMMARY: Senate Bill (“SB”) 1383 (Lara, Chapter 395, Statutes of 2016) was signedinto law in 2016. The law establishes methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants in various sectors of California’s economy, including methane emissions created by disposal of organic materials.
To implement 58 1383, the California Department of Resources Recycling and Recovery (CaiRecycle) adopted regulations that mandate cities and counties to:
• Provide organic waste, including food waste, collection services to all residents and businesses
• Develop and adopt an enforcement mechanism or ordinance by January 2022 • Establish an edible food recovery program• Update the City’s procurement policy to purchase recycled content paper and recycled organic waste products (e.g., compost, mulch, and renewable natural gas) at a volume of
0.08 tons/resident
• Provide outreach and education for generators, haulers, facilities, edible food recovery organizations, and municipal departments
• Plan and secure access for recycling and edible food recovery capacity• Monitor compliance and conduct enforcement • Maintain accurate compliance records
The Department of Resources Recycling and Recovery (“CalRecycle”) offers SB 1383 Local Assistance Grant Program, a non-competitive grant program that will provide one-time funding to local jurisdictions to assist with the implementation of regulations associated with SB 1383.
The City of Avalon is estimated to receive approximately $20,000 in grant funding.
Eligible activities and project costs include:
• Capacity Planning• Collection
• Edible food Recovery
• Education and outreach
• Enforcement and inspection
• Program Evaluation /Gap Analysis• Procurement Requirements• Record Keeping Applications are due by February 1, 2022. To receive funding, Cities must submit a resolution authorizing a resolution identifying a signing authority to execute all documents necessary tosecure funds and implement the program.
GOAL ALIGNMENT: Fiscal stability.
FISCAL IMPACTS: Potential 520,000 in revenue to support the cost of compliance with SB 1383.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: the City will not beeligible to receive funding to support the cost of compliance with SB 1383.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
• Resolution• SB 1383 Local Assistance Grant Program FY 2021-22 Funding Estimates RESOLUTION No.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF AVALON AUTHORIZING SUBMITTAL OF
APPLICATION(S) FOR ALL CALRECYCLE GRANT AND
PAYMENT PROGRAMS FOR WHICH THE CITY OF AVALON IS ELIGIBLE Whereas, Public Resources Code sections 48000 etseq., 14581, and 42023.1(g), authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant and payment programs in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety andthe environment; and Whereas! in furtherance of this authority! CalRecycle is required to establish procedures governing the administration of the payment programs; and administrationof the application, awarding, and management of the grant programs; and Whereas, CalRecycle’s procedures for administering payment and grant programs require, among other things, an applicants governing body to declare by resolution certain authorizations related to the administration of the payment and grant program.
Now, therefore, be it resolved that the City of Avalon is authorized to submit an application to CalRecycle for any and all grant and payment programs offered; and Be it further resolved that the City Manager, or his/her designee is hereby authorized and empowered to execute in the name of the City of Avalon all documents, including but not limited to, applications, agreements! amendments and requests for payment, necessary to secure funds and implement the approved grant or payment project; and
Be it further resolved that these authorizations are effective from the date of adoption through January, 22, 2027.
PASSED, APPROVED AND ADOPTED this th day of January, 2022.
Ayes:
Noes:
Absent:
Abstain:
Anni H. Marshall, Mayor
ATTEST:
Gabrielle Morones, Deputy City Clerk
State of California Department of Resources Recycling and Recovery SB 1383 Local Assistance Grant Program FY 2021-22 - Funding Estimates Jurisdiction Name Estimated Funding AmountAlameda
Alameda $ 107,107Albany
$ 23,390
Berkeley
$ 154,162
Dublin
$ 85,874
Emeryville
$ 20,000
Fremont $ 308,243Hayward $ 208,367Livermore $ 120,658Newark $ 65,104 Oakland $ 572,229
Piedmont $ 20,000Pleasanton
$ 103,811
San Leandro $ 115,507
Union City $ 96,476
Alameda County $ 193,767
Alpine
Alpine County
$ 20,000
Amador
Amador $ 20,000
lone $ 20,000
Jackson
$ 20,000
Plymouth $ 20,000
Sutter Creek $ 20,000
Amador County $ 29,247
Butte
Biggs
$ 20,000
Chico
$ 147,249
Gridley $ 20,000Oroville
$ 24,450
Paradise
$ 20,000
Butte County
$ 78,947
Cal ave ras
Angels City $ 20,000
Calaveras County $ 54,793
Colusa
Colusa $ 20,000
Williams $ 20,000
Colusa County $ 20,000
Contra Costa
Antioch $ 149,030
Lassen
Susanville $ 20,000Lassen County $ 20,489
Los Angeles
Agoura Hills $ 27,852
Albambra $ 114,155
Arcadia $ 76647
Artesia
$ 22,642
Avalon $ 20,000Azusa $ 66,058
Baldwin Park $ 100,616Bell $ 48,657
Bellflower $ 102,613Bell Gardens $ 56,413Beverly Hills $ 44,827 Bradbury $ 20.000Burbank $ 137,384
Calabasas $ 32,947Carson $ 121,251Cerritos $ 66,663Claremont $ 47,854 Commerce $ 20,000Compton $ 129,260
Covina $ 65,070Cudahy $ 32,171Culver City $ 53,229
Diamond Bar $ 75,410
Downey $ 147,163Duarte $ 29,164El Monte $ 153,774El Segundo $ 22,872 Gardena $ 80,167Glendale $ 268,364
Glendora $ 68,620
Hawaiian Gardens $ 20,000Hawthorne $ 115,127Hermosa Beach $ 26,533 Hidden Hills $ 20,000Huntington Park $ 78,322
Industry $ 20,000Inglewood $ 145,503
Irwindale $ 20,000
La Canada Flintridge $ 27,507
La Habra Heights $ 20,000Lakewood $ 106,233La Mirada $ 64,805
CITY OF AVALON CITY COUNCIL
MEETING DATE: January 18, 2022 AGENDA ITEM: ‘1
ORIGINATING DEP: Recreation Department CITY MANAGER:
PREPARED BY: David Hart, Community Service Supervisor
SUBJECT: Fourth of July Barge
RECOMMENDED ACTION(S): Authorize the City Manager to execute an agreement with Curtin Maritime to provide barge services for the 2022 Fourth of July fireworks display.REPORT SUMMARY: Though interrupted in 2020 due to the COVID-19 pandemic, the City contracts a barge company annually to facilitate the Fourth of July fireworks show.
Due to the high demand and a reduced number of providers for shows on the Fourth of July, City Staff would like to secure a barge now.
On November 16, 2021, Staff was contacted by a representative of Curtin Maritime expressing their interest in providing the barge service for the Fourth of July show and offering to matchthe lowest bid received by any barge company. Additionally, Curtin Maritime offered to only charge for the hard costs (employee time and fuel) and donate any remaining monies back to the City of Avalon to support youth activities.
Staff began soliciting bids from barge service providers in late 2021. Of 4 requests to various vendors, including Foss Maritime Company and Sause Brothers. Staff received only one quote from a vendor other than Curtin Maritime — Pacific Tug. The estimate provided by Pacific Tug and matched by Curtin Maritime is $32,760.
If approved, this would be the first time the City of Avalon utilized Curtin Maritime’s barge services for the Fourth of July fireworks show. In the past, Curtin Maritime donated the bargeservices for the fireworks show provided to the City of Long Beach.
Staff recommend the City Council authorize the City Manager to execute an agreement with Curtin Maritime to provide barge services for the 2022 Fourth of July fireworks display. This request is for barge services only. Staff will be coming back to the City Council to review the total Fourth of July budget, seek approval of a firework contractor, determine the theme, and review the activities schedule.
GOAL ALIGNMENT: Enhance Recreational Opportunities.
FISCAL IMPACTS: The barge is will cost $32,760. The City has a total budget of $50,000 for the Fourth of July activities.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City would not have a barge secured to launch fireworks for the Fourth of July Fireworks Display.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act ATTACHMENT: Quotes from Barge Companies
Pacific Tugboat Service
P S San Diego (619) 533-7932
Long Beach (562) 590-8188
P.0, Box 12787, San Diego, CA 92112-3788
1444 Cesar B Chavez Pkwy. San Diego, Ca 92113
1512 West Pier C Street, Long Beach, CA 90813
City of Avalon Recreation Dept.
[email protected]
310 510 0220 ext.23
Avalon Fireworks Show July 2022
11/29/2021
Hello David,Please see the quote below for the Catalina fireworks show on July 4th, 2022, at 2100 hours Included in this proposal are the following:
• Tugboat
• Barge 110X34• Yard
• Labor• VTIS Fees
• Safety Equipment• Fuel
Pricing
Admin/coordination
• $ 32,760
Terms : 16,380.00 deposit due by April 15th,2022
16,380.00 balance due by May 15th,2022
Cancellation policy.
The following fee schedule will apply should the Customer elect to cancel this display.All management fees are included in the pricing above.
To activate this quote please sign below and return acknowledging the pricing and our terms and conditions.
Our full T & C’s are available at https://www.pacilicnaritirncgrroup,com/ueneral—terrns—and—conditions/ Please call or reply with any questions you may have.
pal-,q),ak1L,kdVt4a4*Aart
Pacific Maritime Group
1512 Pier C St. Berth C-58
Long Beach, CA 90813
C: 562.833.2825
Acknowledged:
At Pacific Tugboat Service, your safety and sabsfaction are of paramount importance. If you plan to do business with us, or you are visiting, please access: http://ww.oadfictugboats.com/termsI for complete terms and conditions, and visit htto://vnvw.oacifictugboats.corn/ to learnmore about our commitment to service. Page 1 of 1 CLflTIN
MA 9 ‘TIME
Dave Hart
City of Avalon310-510-0220 Officedhartcitvofavalon.com
Date: December 9, 2021RE: City of Avalon / 4th of July, 2022 FireworksDave,Good morning and thanks for the opportunity to offer tug and barge service for Avalon’s 2022 4th of july fireworks celebration! Details and pricing are as follows.
Included in this proposal is a suitable tug, a suitable barge, yard to load fireworks and fuel.Excluded from this proposal is the actual fireworks, loading of fireworks, setting up the fireworks and shooting off the fireworks.
Pricing is as follows and subject to the availability of our equipment and a mutually agreed upon towageagreement.
Service RateCity of Avalon Fireworks / Tug & Barge Service $32,760 Respectfully,8444 il&a*cy
310-625-5381 cellealvarezcurtinmaritime.com
CLPTIN
NA AJRI TIME —
Curtin MarItime, CDrP. j wjw.curt,nmarilimecom P562-983-7257 nb©curnmarilime.cam From: Edgar Alvarez <[email protected]>
Sent: Wednesday, November 17, 2021 3:51 PM
To: David Hart <dhartCE3jyofavalon.com>
Subject: 4th of July - Avalon
Dave,
Based on our conversation:
• Currently, we provide a tug and barge for the “Bang of the Bay” in Long Beach on the 3rd of July. • The contact listed below is who provides the fireworks for them. Perhaps, we could load the barge with both sets of Fireworks and go do the Bang on the Bay Fireworks and then head towards Avalon the night of for the show on the 4th•
• We would match the cost of what COA normally pays for the transportation. I believe between 24K — 38K.
• Then we would like to take the proceeds from the transportation cost and donate it to several programs throughout Avalon.
The Curtin family has strong ties to the island and would like to do this for this for the Island.
See the supplier below.
Home - Pyro Spectaculars by Souza
Let me know if you have any questions.
Thanks,
Edgar Alvarez I Project Coordinator
Office: 562-983-7257 ext 209Cell: 310-625-5381
CLIRTIN
MARITIME
1400 Pier C St., Berth 57
Long Beach, CA 90813
P.O Box 2531
Long Beach, CA 90801
CITY OF AVALON CITY COUNCIL
MEETING DATE: January 18, 2022 AGENDA ITEM:
ORIGINATING DEP: Finance CITY MANAGER:
PREPARED BY: Matthew Baker, Finance Director
SUBJECT: City of Avalon Annual Financial Report - Fiscal Year Ended June 30, 2021
RECOMMENDED ACTION(S): Receive and file the Annual Financial Report and other auditreports for the fiscal year ended June 30, 2021.
REPORT SUMMARY: The City is required to conduct an annual independent audit of its financial statements. The audit firm of Davis Farr LLP conducted the annual audit and with Staff assistance prepared the required financial statements. For the fiscal year ended June 30, 2021, the City received an unqualified opinion. The auditor is in a position to express an unqualified opinion on the financial statements when the auditor conducted an audit in accordance with thestandards of the Public Company Accounting Oversight Board (“PCAOB”) and concludes that the financial statements, taken as a whole, are presented fairly, in all material respects, in conformity with the applicable financial reporting framework.
The Annual Financial Report is presented in three sections: introductory, financial, and statistical. The introductory section includes the letter of transmittal and organizational chart. The financial section includes the Independent Auditor’s Report, Management’s Discussion and Analysis (MD&A), the basic financial statements, Required Supplementary Information, and other information. The MD&A contains a narrative introduction, overview, and analysis of theCity’s financial statements. It should be read in conjunction with the letter of transmittal. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. In contrast to the financial section information, the statistical informationhas not been audited.
The other audit reports include the Summary of Audit Results, Independent Auditors’ 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 (ICFR Report), and Independent Accountant’s Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets (GANN Letter). The Summary of Audit Results communicatesto those charged with governance (i.e. City Council) the scope of audit procedures performed, significant findings, and other information, such as disagreements with management, audit adjustments and significant estimates, that are not communicated in the audited financialstatements. The ICFR Report describes the scope of the auditor’s testing of internal control and compliance and the results of that testing, as well as the City’s responses to any findings. The GANN Letter summarizes the agreed-upon procedures performed by the auditors to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. In prior years, the City has completed Single Audits designed to provide assurance to the US federal government as to the management of federal assistance, The City was not required to conduct a Single Audit this year as it did not expend $750,000 or more in federal awards for the fiscal year ended June 30, 2021
GOAL ALIGNMENT: Meeting required disclosures.FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS:
1. Annual Financial Report for the Fiscal Year Ended June 30, 2021
2. Summary of Audit Results
3. Independent Auditors’ 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 (ICFR Report)
4. Independent Accountant’s Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets (GANN Letter)
CITY OF AVALON, CALIFORNIA
Basic Financial Statements
Year ended June 30, 2021
CITY OF AVALON
Basic Financial Statements and Supplemental Data
Year ended June 30, 2021
TABLE OF CONTENTS
Page
Number
Introductory Section:
Letter of Transmittal
Organization Chart v
List of Elected and Appointed Officials vi
Financial Section:
Independent Auditor’s Report 1
Management’s Discussion and Analysis 4
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 20Statement of Activities 21
Fund Financial Statements:
Governmental Funds:
Balance Sheet 24
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 26
Statement of Revenues, Expenditures and Changes in Fund Balances 27 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 29 Proprietary Funds:
Statement of Net Position 31Statement of Revenues, Expenses and Changes in Net Position 33Statement of Cash Flows 35 Private Purpose Trust Fund:
Statement of Fiduciary Net Position 37
Statement of Changes in Fiduciary Net Position 38
Notes to Basic Financial Statements 39
Required Supplementary Information:
Pension Plans:
Miscellaneous Plan:
Schedule of the Plan’s Proportionate Share of the Net Pension Liability 76Schedule of Plan Contributions 78 Safety Plan:
Schedule of the Plan’s Proportionate Share of the Net Pension Liability 80Schedule of Plan Contributions 82 Schedule of Changes in Total OPEB Liability and Related Ratios 84Schedule of DPEB Contributions 85
CITY OF AVALON
Basic Financial Statements and Supplemental Data
Year ended June 30, 2021
TABLE OF CONTENTS
(CONTINUED)
Page
Number
Budget to Actual Schedules:
General Fund 86
Local Transportation Special Revenue Fund 87
Avalon Housing Authority Special Revenue Fund 88
Notes to Required Supplementary Information 89
Other Information:
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet 91Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 93
Schedules of Revenues, Expenditures and Changes
in Fund Balance - Budget to Actual:
Street Special Revenue Fund 95
Traffic Control and Safety Special Revenue Fund 96
Community Development Block Grant Special Revenue Fund 97 Development Impact Fees Fund 98Mclean / Hall / Putnam Trust Fund 99 Internal Service Funds:
Combining Statement of Net Position 101Combining Statement of Revenues, Expenses, and Changes in Net Position 102
Combining Statement of Cash Flows 103
Statistical Section (Unaudited):
Government-wide Information:
Net Position by Component Unit 104
Changes in Net Position 105
Fund and Other Information:
Fund Balances of Governmental Funds 107
Changes in Fund Balances -Governmental Funds 108Governmental Activities Tax Revenues by Source 109Governmental Fund Expenditures by Function 110 Top 25 Sales Tax Producers 111Ten Largest Property Tax Payers 112 Assessed Valuation of Taxable Property 113
Demographic and Economic Statistics 114Full-Time Equivalent Employees by Department 115 (This page intentionally left blank)
INTRODUCTORY SECTION
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CITY OF AVALON
January 12, 2022,
Honorable Mayor, Members of the City Council, and Citizens of the City of Avalon:
We are pleased to submit the Comprehensive Annual Financial Report of the City of Avalon (the City) for the fiscal year ended June 30, 2021. This report is a comprehensive document regarding the City’s fiscal condition and has been prepared in accordance with generally accepted accounting principles (GAAP).
Management is responsible for the City’s internal control environment, compliance matters, as well as the reliability and accuracy of the information presented. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of thevarious funds of the government and its component units. All disclosures necessary to enable the reader to gain an understanding of the government’s financials activities have been included as well. Because the cost of internal control should not exceed benefits to be derived, the objective of internal controls is to provide reasonable assurance, rather than absolute assurance, that the financial statements are free of any material misstatements, The public accounting firm of Davis Farr, LLP has conducted an independent audit of the City’sfinancial statements in order to render an opinion on the financial information presented. I am pleased to report the auditors have rendered an unmodified opinion regarding the information presented in this document.
The ReDort
The Comprehensive Annual Financial Report is presented in three sections: introductory, financial, and statistical. The introductory section includes the letter of transmittal and organizational chart. The financial section includes the independent auditor’s report, management’s discussion and analysis (MD&A), the basic financial statements, required supplementary information, and other information. The MD&A contains a narrativeintroduction, overview, and analysis of the City’s financial statements. It should be read in conjunction with this letter of transmittal. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. In contrast to thefinancial section information, the statistical information has not been audited.
City Profile
The City of Avalon is a tourism-driven harbor community located on Santa Catalina Island in the Channel Islands, approximately twenty-two miles off the coast of Southern California. TheCity’s jurisdictional boundaries cover a 2.8 square mile area on the southeast end of the island around Avalon Bay. The City serves a population of approximately 3,800 residents and welcomes over one million visitors each year through its picturesque harbor.
The City of Avalon, incorporated in June 1913, is a general law city that operates under theCouncil-Manager form of government. Policy-making and legislative authority are vested in the City Council, consisting of the mayor and four council members, all of whom are electedat large. The Mayor is elected for a two-year term and council members are elected to serve four-year terms, with two members elected every two years. The City Council appoints theCity Manager, who is responsible for the administration of all City affairs and for the implementation of all policies established by Council. The City Attorney and City Clerk are theonly other positions appointed by the City Council, with all other department heads and employees appointed by the City Manager.
The City of Avalon is a full-service city providing a range of services, including public safety, contracted through the Los Angeles County Sheriff’s Department, fire protection, planning services, building inspections, and recreation and community services. The City is also responsible for enterprise funds providing sewer, saltwater, and solid waste services, as well as harbor operations.
Budgetary Process and Controls
The City’s budget document serves as the financial plan or operating guide of the government.
It establishes spending authority, describes the City’s goals and objectives and indicates howresources are to be allocated. The City’s principal fiscal strategy is to present a structurally balanced operating budget wherein recurring revenues exceed recurring expenditures. To accomplish this, recurring revenues are projected using economic indicators, input from professional consultants, and analysis of historical trend data, with conservative applicationof revenue growth projections in an effort to avoid overstating available resources. The objective is to then budget recurring expenditures below revenue projections and limit expenditure growth to avoid excessive spending. Reserves generated by a balanced budget can then be used to fund significant capital outlays and offset future revenue shortfalls.
The budget document must be adopted by the City Council after conducting a public hearing.
In preparation for this hearing, the budget undergoes a series of reviews and discussions with the City Manager and key staff members to help refine the document. This document is then presented in public workshops with the City Council. These workshops also afford the public an opportunity to provide input during the budget development process. Feedback obtained from these workshop discussions is then incorporated into the final proposed budget document for presentation at the public hearing and consideration for approval by the CityCouncil. During the year, it may become necessary to amend the adopted budget as estimates become more refined and as circumstances change. The City Manager has the authority to move appropriations within a fund between programs; however, any changes that result in an increase in the total budgeted appropriations within a fund require the approval of CityCouncil.
In 1979, voters in the State of California approved Proposition 4, known as the Gann Initiative to Limit Government Spending (Gann Limit). The Gann Limit places a cap on the amount of proceeds from taxes that may be appropriated in a fiscal year. In conjunction with the City’sbudget preparation and adoption, the annual Gann (Appropriations) Limit is calculated and adopted. The City’s appropriations for Fiscal Year 2020-2021 are well below the established limit of $11,445,895.Economic Outlook
With its picturesque harbor and as the gateway to the island’s open space conservancy, the City of Avalon’s local economy is centered on the tourism industry. With a relatively small property tax base and resident population, the City has historically relied on visitor-driven tax revenues and fees to fund operations Visitors are drawn to the City’s abundance of unique outdoor and ocean-based recreational activities, including kayaking, zip-lining, and scenic tours. Shopping and dining opportunities are available throughout the City, with local residents and visitors able to enjoy the natural beauty and warm temperatures year-round along the City’s waterfront street.
The City is host to a wide variety of events, attracting visitors to the island throughout the year and providing local residents with the opportunity to celebrate as a community, includingthe annual Fourth of July celebrations, fall and spring community festivals, concerts and live music, as well as marathons and other race events. The Catalina Island Tourism Authority maintains a calendar of events which can be found on its website: www.lovecatalina.com.
Visitors seeking to take full advantage of all that the community has to offer and stay overnight have a variety of accommodation choices including hotels, vacation rentals, andcamping facilities. Transient rentals are subject to a twelve percent (12°/a) transientoccupancy tax (TOT), which accounts for the majority of the City’s General Fund revenues.
Twenty two percent (22%) of the taxes collected are dedicated to the Catalina Island Tourism Authority to promote marketing and promotional activities, with the remaining funds, which represent the largest source of General Fund revenues, used to fund governmental services,including public safety.In addition to TOT, major revenues include Sales Tax and various harbor use fees. Sales tax is the second largest source of revenue in the General Fund, with bars and restaurants accounting for a majority of the taxable receipts generated in the City. One percent (1%) of the ten percent (1O%) sales tax collected is remitted back to the City to fund governmentalservices, with the remaining divided between the State, County, and various other agencies, including a half percent (O.S°/n) to the Catalina Island Medical Center. The City is alsoresponsible for the maintenance and operation of the harbor facilities, which is funded through user charges, including a three dollar ($3) per passenger wharfage fee, nightly mooring fees, and a seven percent (7%) use fee on gross receipts from businesses operating within the harbor.
The coronavirus (COVID-19) pandemic and actions taken to reduce its transmission and spread, including restrictions on non-essential travel, capacity limits to encourage social III
distancing, and the closure of bars and indoor dining, significantly impacted the local economy over the past two fiscal years. However, the City has benefitted from a resurgence in tourism, particularly during the fourth quarter of the fiscal year, as widespread vaccine availability andresulting reductions in transmission allowed for an easing of restrictions. TOT revenues, which were down $893 thousand or 16.5°/o in the last fiscal year, rebounded to $6.02 million, a 33,7% increase from the prior fiscal year ended june 30, 2020. The City’s proximity to the greater Los Angeles metropolitan area, its unique island location, and natural abundance ofopen spaces contributed to stronger than normal levels of overnight visitors, particularlyduring the fall and spring shoulder seasons, as visitors were able to enjoy the island while working or attending school remotely. Taxable sales were relatively flat compared to the priorfiscal year and remained below pre-pandemic levels, with overall visitor counts down as a result of passenger restrictions and restrictions on the cruise industry, in general, which alsoled to decreases in harbor operating revenues of $865 thousand or 10.6% compared to the fiscal year ended June 30, 2019.
The City continues to benefit from the easing of pandemic restrictions locally, with cruise ship visitors returning to the City in September 2021. However, the continued easing of restrictions will lead to increased competition with other international and island destinations and it remains to be seen whether the increased levels of overnight visitors experienced during the fourth quarter of the fiscal year is sustainable. While the City has continued to see a resurgence of tourism through the summer, the budget for the next fiscal year (Fiscal Year 2021-2022) includes conservative revenue projections and continued expenditure reductions to preserve existing funds and replenish draws on reserves required during the initial response to the pandemic. Additional information regarding revenue projections and insight on the City’s economic outlook is available in the MD&A following the IndependentAuditor’s Report.
Acknowledgements
The preparation of this report would not have been possible without the year-round efforts of City Staff, with a special thanks to the staff in the Finance Department. We would also like to express our appreciation to the Mayor and City Council for their leadership and support. Lastly,we would like to thank the City’s auditing firm, Davis Farr LLP, for their professional assistance.
Respectfully submitted,
t6fl3r
Denise Radde Matthew Baker
City Manager Finance Director
iv
City of Ava Ion
Organizational Chart
Fiscal Year Ended June 30, 2021
V
City of Ava Ion
List of Elected and Appointed Officials
Fiscal Year Ended June 30, 2021
Elected Officials
Mayor Ann MarshallMayor Pro-Tern Cinde MacGugan-Cassidy Council Member Yesenia De La Rosa
Council Member Lisa LavelleCouncil Member Michael Ponce AnDointed Officials
Treasurer Oley Olsen
City Attorney Scott CampbellCity Manager / City Clerk Denise Radde vi
FINANCIAL SECTION
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I:a’,isFa rr 8203 Von Kormon Avenue I Sute 1 CERTIFIED PUBUC ACCOuNTANTS Muir: q43 474 2020 Eux q4q!(13 52O INDEPENDENT AUDITOR’S REPORT
City Council
City of Avalon
Avalon, California
Report on the Financial StatementsWe have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Avalon, California (the City) as of and for the year ended June 30, 2021 and the related notes to the financial statements, which collectively comprise theCity’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the UnitedStates of America; this includes 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on ouraudit, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits containedin Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error, In making those risk assessments, the auditorconsiders internal controls relevant to the entity’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements,
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statementsreferred to above present fairly, in all material respects, the respective financial position 1 of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Avalon, California, as of June 30, 2021,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,
Report on Summarized Comparative Information
We have previously audited the City’s 2020 financial statements, and we expressed a modified audit opinion on those audited financial statements in our report dated January 15, 2021. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2020 is consistent, in all material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, certain budgetary comparison information, Schedules of Changes in Net Pension Liability and Related Ratios, Schedules of Pension Contributions, Schedule of Changes in total OPEB liability and Related Ratios, and the Schedule of OPEB Contributions be presented to supplement the basic financial statements.
Such information, 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 offinancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the requiredsupplementary information in accordance with auditing standards generally accepted inthe United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency withmanagement’s responses to our inquiries, the basic financial statements, and otherknowledge 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 limitedprocedures do not provide us with sufficient evidence to express an opinion or provide anyassurance.
Other In formation
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements, certain budgetary comparison schedules,the introductory section and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and certain budgetary comparison schedules 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, thecombining and individual nonmajor fund financial statements and certain budgetary 2 comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductoty section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 12, 2022 on our consideration of the City of Avalon’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 purpose of that report is todescribe the scope of our testing of internal control over financial reporting and complianceand the results of that testing, and not to provide an opinion on 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 of Avalon’s internal control over financial reporting and compliance.
LLP
Irvine, California
January 12, 2022
3 Management’s Discussion and Analysis
Management of the City of Avalon (City) is pleased to offer this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021 (Fiscal Year (FY) 2021). We encourage readers to consider the information presented here in conjunction with the accompanying transmittal letter beginning on page i and the City’s financial statements found on pages 20-38 of this report.
Financial Highlights
• The City’s governmental activities net position increased by $638 thousand or 3.7% to $18.04 million. This increase was primarily attributable to increased current assets, including cash and receivables, as a result of increased tax revenues and decreased governmental program expenditures.
• Net position of the City’s business-type activities increased by $683 thousand or 7.8/c to $9.49 million. This increase was a result of increased revenues from charges for services, decreased program expenses, and increased investments in capital asset. • At the end of the fiscal year, the City’s unassigned fund balance in the General Fund was $6.79 million or 73.7% of total General Fund expenditures and transfers out. This increase of $2.23 million was primarily driven by strong transient occupancy revenues,up $1.52 million or 33.7°/s from the prior fiscal year, as well as from reductions in expenditures totaling $1.06 million, both compared to the prior fiscal year ended June 30, 2020.
• For the City’s proprietary funds, operating revenues exceeded operating expenditures En the Harbor, Sewer, and Saltwater funds by $230 thousand, $161 thousand, and$144 thousand, respectively. Operating expenditures exceeded revenues in the Solid Waste and Avalon Transit funds by $361 thousand and $114 thousand, respectively.
During the fiscal year ended June 30, 2021, the City completed a new five year rate study for the Sewer, Saltwater, and Solid Waste funds rates to equitably fund operatingand capital needs for each utility. • Capital Assets decreased by $1.12 million for governmental activities and increased by $504 thousand for business-type activities. The Cabrillo Mole ferry terminal substructure improvements were completed during the fiscal year, with $5.11 millioncapitalized as Improvements other than Buildings. • The City’s long-term liabilities increased by $1.52 million for governmental activities and $762 thousand for business-type activities. The increases were primarilyattributable to net other post-employment benefit (OPEB) liabilities. Net OPEB liabilities increased primarily as a result of changes to the discount rate used in actuarial valuations.
4 Using this Annual Report
This discussion and analysis is intended to serve as an introduction to the City’s financial statements. The City’s Basic Financial Statements are comprised of the following threecomponents:
(1) Government-Wide Financial Statements, which include the Statement of Net Position and the Statement of Activities. These statements provide information about theactivities of the City as a whole and present a long-term view of the City’s finances. (2) Fund Financial Statements, which describe how City services are financed in the shortterm, as well as what resources are available for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. (3) Notes to the Financial Statements
In addition to the Basic Financial Statements, Required Supplementary Information andCombining and Individual Fund Schedules are presented immediately following the Notes to the Basic Financial Statements.
Reporting the City as a Whole
Government-Wide Financial Statements
The Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business.
The Statement of Net Position presents information on the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City isimproving or deteriorating.
The Statement of Activities presents information showing how the government’s net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, some revenues and expenses reported in this statement will result in cash flowtransactions in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).Readers of financial statements often ask whether the City is better or worse off from a fiscal standpoint as a result of the current year’s activity. The Statement of Net Position and Statement of Activities provide information in a manner that answers this question. In addition to the financial information reported in these statements, economic factors (non-financial indicators) should also be considered in interpreting the fiscal health of the government (e.g. changes in the economy affecting consumer spending result in changes in the net positionand activities of the City).
S
Both of the Government-Wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Cityinclude general government and administration, public safety, planning, public works, and community services. The business-type activities of the City include sewer, saltwater, solidwaste, transit, and harbor operations.
The GovernmentWide Financial Statements start on page 20 of this report.
Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds and other funds — not the City as a whole. A fund is a grouping of related accounts that isused 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 ensureand demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories; governmental funds, proprietary funds, andfiduciary funds, which use different accounting approaches as summarized below:
Governmental Funds — Most of the City’s basic services are reported in governmental funds. Governmental funds focus on near-term inflows and outflows of resources, withthe balances remaining as spendable resources at the end of the fiscal year. These funds are reported using an accounting method called modified accrual account/ny,which measures cash and all other financial assets that can be readily converted to cash. The Governmental Fund Financial Statements provide a detailed short-term viewof the City’s general government operations and the basic services it provides.
Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs.
The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is demonstrated through the Reconciliation of the Fund Financial Statements to theGovernment-Wide Financial Statements. Because the focus of the Fund Financial Statements is narrower than that of the Government-Wide Financial Statements, thecomparison may provide a better understanding of the long-term impact of the government’s short-term financing decisions. The Governmental Fund FinancialStatements start on page 24 of this report.
Proprietary Funds — Proprietary funds are used to account for essentially the same functions reported as business-type activities in the Government-Wide Financial Statements and are reported in the same way. The two types of proprietary funds areenterprise funds and internal service funds. The City uses enterprise funds to account for its harbor, sewer, saltwater, solid waste and transportation services and uses internal service funds to account for general administration, insurance, and vehicle 6 maintenance. The Proprietary Fund Financial Statements start on page 31 of this report.
• Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the governmentwide financial statements because the resources of those 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. After the date of the dissolution of the Avalon Community Improvement Agency (ACIA) on February 1, 2012, the assets and liabilitiesof the former redevelopment agency were transferred to the Successor Agency of the ACIA (Successor Agency) and are reported as a fiduciary fund (private-purpose trustfund).
Reporting Information Essential to Understanding the Basic Financial StatementsNotes to the Financial Statements Notes to the Financial Statements are presented following the Fund Financial Statements toprovide additional information that is essential to a full understanding of the financial statements, including significant accounting policies, cash and investments, interfund transactions, liabilities, and other disclosures. The Notes to the Financial Statements start on page 39 of this report.Required Supplementary Information Immediately following the Notes to the Financial Statements is information that is required toaccompany the Basic Financial Statements in order to add context to the data presented. In particular, budgetary comparison schedules are provided for all major governmental funds to offer a perspective as to how well the budgetary process and budget amendments relate tothe actual activity at the close of the reporting period. Additional pension related disclosures are also included as Required Supplementary Information (RSI) showing historical data related to net pension liability, funding levels, and plan contributions.
Combining and Individual Fund Schedules
The Combining and Individual Fund Schedules are presented following the Notes to the Required Supplementary Information. These schedules supplement the information presentedin the Fund Financial Statements by showing the components which are reported in the aggregate (nonmajor funds) as Other Governmental Funds in the Basic Financial Statementsand by disclosing funds for which the City has a responsibility to account for the flow of assetsseparate from other assets of the City (e.g. special revenue funds restricted for a specific purpose).
Analysis of Government-Wide Financial Statements
The government-wide financial statements include the Statement of Net Position and the Statement of Activities. The Statement of Net Position reports the net position for 7 governmental and business-type activities, as well as the combined total net position, which is determined by calculating the difference between total assets and deferred outflows ofresources and total liabilities and deferred inflows of resources. The Statement of Activities shows program revenues and expenses, as well as general revenues for both governmentaland business-type activities, which provides a perspective on the activities resulting in thechange in net position for each type and in the aggregate.
The table below summarizes the net position of the governmental and business-type activities in in a side-by-side comparison over the prior two fiscal years. Net position may serve over time as a useful indicator of a government’s financial position. The City’s combined net position was $27.53 million for the fiscal year ended June 30, 2021 and $26.21 million for the fiscal year ended June 30, 2020,
Table 1
Statement of Net Position
(in Thousands)
Governmental Activities Business -Type Activities Total 2021 2020 2021 2020 2021 2020
current and restricted assets $ 15,629 $ 12,542 $ 5,061 $ 4,696 $ 20,690 $ 17,238 capital assets 16,635 17,755 18,135 17,631 34,770 35,386 Total Assets $ 32,264 $ 30,297 $ 23,196 $ 22,327 $ 55,460 $ 52,624 Deterred Outflows ofResources $ 1,863 $ 1,406 $ 1,215 $ 1,026 $ 3,078 $ 2.432 current uabilities 1,380 881 912 1,124 2,292 2,S
Proportionate share of collectivenet pension liability 6,618 5,956 4,573 4,563 11,191 10,519 Proportionate share of collectivenet OPEB liability 6,113 5095 3,749 3,211 9,862 8,306Non-current Liabilities 921 1078 4,975 4,103 5,896 5,781 Total Liabilities $ 15,032 $ 13,010 $ 14,209 $ 13,601 $ 29,241 $ 26,611 Deterred Inflows of Resources $ $ 1,292 $ 708 $ 940 $ 1,765 $ 2,232Net Position:
Net nvestj-nent in capital assets $ 16,041 $ 17,160 $ 18,081 $ 17,528 $ 34,122 5 34,688Restricted Low and moderate incomeHousing 5,774 5,857 - - 5,774 5,857capital projects 78 39 - - 78 39 Transportation 73 69 - - 73 69
unrestricted (3,928) (5,725) (8,5871 (8,717) (12,515) (14,442) Total t*t Position $ 18,038 S 17,400 $ 9,494 $ 8811 $ 27,532 $ 26,211 Investments in capital assets represents assets such as land, buildings, infrastructure, and equipment less any related outstanding debt used to acquire those assets, Investment incapital assets, totaling $34.12 million, is the largest component of the City’s net position and represents l23.9% of the City’s net position, a decrease of 8.4°/o from the prior fiscal year. 8 The City’s capital assets do not represent a financial resource, as they are used to provide services to citizens, and consequently are not available for future spending.
The restricted portion of the City’s net position, which represents resources subject to external restrictions on how they may be used, totaled $5.93 million and remained mostly unchanged from the prior fiscal year. The remaining unrestricted net position of negative $12.52 million reflects an increase of $1.93 million from the prior fiscal year and the deficit amount can be attributed to net pension and OPEB liabilities of approximately $21.05 million.
The following table provides a comparison of activities contributing to changes in net positionfor the prior two fiscal years:
Table 2
Statement of Activities
(in Thousands)
Governmental Activities Business -Type Activities Total 2021 2020 2021 2020 2021 2020
Program Revenue
Charges for Services $ 1,068 $ 1,104 $ 12,983 $ 12,243 $ 14,051 $ 13,347 Operating Grants &contributions 2,166 1,902 31 2,203 2,197 4,105Capita! Grants & Contributions - - - - - General Revenue Taxes:
Property taxes 1,260 839 - - 1,260 839Sales taxes 1,491 1,428 - - 1,491 1,428 Transient Occupancy taxes 6,021 4,504 - - 6,021 4,504
Other taxes 1,179 1,079 192 170 1,371 1,249
Licenses and Pernits 9 5.0 - - 9 5Investment earnings 36 305 131 166 167 471Miscellaneous incorre 124 251 14 - 138 251 Transfers (261) (297) 261 297 - -
Total Revenues $ 13,093 $ 11,120 $ 13,612 $ 15,079 $ 26,705 $ 26,199 Expenses
Public Safety $ 2,126 $ 2,088 $ - $ - $ 2,126 $ 2,088
Fire and Antulance 2,891 3,309 - - 2,891 3,309
Planning, Building &Engineering 706 1,093 - - 706 1,093Cornmunity Services 959 1,165 - - 959 1,165 Public Works 1,710 2,335 - - 1,710 2,335
Transportation 1,253 1,266 - - 1,253 1,266
General Government 2,810 2,906 - - 2,810 2,906
Harbor - - 7,079 8,025 7,079 8,025Sewer - - 2,652 2,528 2,652 2,528Saltwater - - 692 539 692 539Solid Waste - - 2,344 1,990 2,344 1,990 Avalon Transit - - 162 1,000 162 1,000
Total Expenses $ 12,455 $ 14,162 $ 12,929 $ 14,082 $ 25,384 $ 28,244 Change in Net Position $ 638 $ (3,042) $ 683 $ 997 $ 1,321 $ (2,045) Net Position at Beginning of
Year 17,400 20,442 8,811 7,814 26,211 28,256.0
Net Position at End ofyear $ 18,038 $ 17,400 $ 9,494 $ 8,811 $ 27,532 $ 26,211 9 The City’s combined net position increased by $1.32 million or 50°/o during the fiscal year ended June 30, 2021; however, the combined net position is still down compared to the fiscalyear ended June 30, 2019. A comparison of net position by component unit for the last tenfiscal years can be found in the Statistical Section beginning on page 104 of this report.Governmental activities experienced an increase in net position of $638 thousand as of June 30, 2021 compared to a decrease of $3.04 million in the prior fiscal year. The increase in netposition is partially attributable to increased tax revenues, including a $1.52 million increasein transient occupancy tax (TOT) revenues. The City experienced significant, unanticipatedincreases in overnight visitors, primarily during the fourth quarter of the fiscal year, aspandemic-related restrictions on businesses and non-essential travel were lifted. Decreasesin program expenses also contributed to the increased net position, with decreases in Fire and Ambulance expenses of $418 thousand, Planning, Building, & Engineering expenses of $387 thousand, Community Services of $206, Public Works of $625 thousand, and General Government of $96 thousand. In response to pandemic-related disruptions to travel andtourism and uncertainties related to economic recovery, the City made significant reductions to its operating expenditures across all departments to offset anticipated decreases in tourism-driven tax revenues.Governmental activities are primarily supported by taxes but may be partially offset through the collection of fees for services. For example, Planning, Building, & Engineering expensestotaling $706 thousand were offset through the collection of building permits and other planning-related fees and grant revenues, totaling $586 thousand, for a net cost of $120 thousand supported through general tax revenues. The net cost of governmental activities across all functions decreased by $1.95 million or 17.4°/s for the fiscal year ended June 30, 2021 primarily due to reductions in program expenses.Business-type activities experienced an increase in net position of $683 thousand as of June30, 2021 compared to an increase of $997 thousand in the prior fiscal year. The increase in the prior fiscal year was primarily attributable to grant revenues of $2.20 million, primarilyfor the construction of the Cabrillo Mole ferry terminal substructure improvements. The increase in net position for the fiscal year ended June 30, 2021 was primarily attributable to decreased harbor operating expenses.
Business-type activities should be self-supporting with the cost of providing the service recovered by the users of the service provided. Operating costs related to Harbor, Sewer, andSaltwater activities were covered by fees and other user charges during the fiscal year.
Deficits in the net cost of service for Solid Waste funds will be addressed as part of a cost of service study that was completed during the fiscal year. For the City’s transit program, theCity has historically subsidized operating costs for these services with tax revenues in orderto provide them to residents and visitors at an affordable rate.After considering program revenues supporting the activities, the net cost of services, totaling $9.14 million, represents the financial burden or subsidy that was placed on the City’s taxpayers during the year. The table below summarizes the City’s net cost of services for governmental and business-type activities.
10 Table 3
Net Cost of Governmental Activities
(in Thousands)
Government Activities:
Public SafetyFire and AmbulancePlanning, Building &Eng in ee ring Community Services
Public Works
Transportation
General Governrrnt
Total Government Activities
Business-Type Activities:
Ha rbo rSewerSa It waterSolid Waste
Avalon Transit
Total Business-TypeActivities
Total Primary Government
Total Cost of Services Net Cost of Services
2021 2020 2021 2020
$ 2,126 $ 2,088 $ 1,875 $ 1,893
2,891 3,310 2,525 2,915
706 1,092 120 355959 1,165 677 1,034
1,710 2,335 1,485 2,1541,253 1,266 179 (27)
2,810 2,906 2,359 2,843
S 12,455 $ 14,162 $ 9,220 $ 11,167
S 7,079 $ 8,025 $ (253) $ (1,078)
2,652 2,528 (157) (99)
692 539 (142) (236)
2,344 1,990 349 142
162 1,000 119 907
5 12,929 $ 14,082 $ (84) $ (364)
5 25,384 $ 28,244 $ 9,136 $ 10,803
Analysis of Fund Financial Statements
The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements.
The Balance Sheet for governmental funds is similar to that of a private enterprise in that assets less liabilities equals the funds available for use. In the private sector, this balance is referred to as retained earnings; whereas, governmental fund financial statements maintain a Fund Balance. Over time, the Fund Balance may serve as a useful measure of a City’savailable resources. The Fund Balance designations pursuant to Government AccountingStandards Board Statement No. 54 (GASB 54), Fund Balance Reporting and GovernmentalFund Type Definitions, are classified as Non-spendable, Restricted, Committed, Assigned, or Unassigned. Non-spendable Fund Balances cannot be spent because they are either not in a spendable form (e.g. reserve for inventories) or are legally or contractually required to remain intact. Restricted Fund Balances are limited in use by externally imposed constraints (e.g. debt covenants) or the law (e.g. constitutional provisions or enabling legislation). Committed, 11 Assigned, and Unassigned Fund Balances are unrestricted; however, their use may be limited by action of the governing body (e.g. replacement reserves) or administrative purposes (e.g.reserve for encumbrances). The Unassigned Fund Balance represents the resources available for general purpose uses.
Table 4
Fund Balances by Category
Fiscal Year Ended June 30, 2021.
Nonspendable:
Due from ACIA Successor Agency
Restricted For:
Low and Moderate tncorr Housing
Capital ProjectsStreet Projects
Unassigned:
Total Fund Balances
General Fund All Other Funds Total Funds
$ - $ - $
- 5,773,570 5,773,570- 78,398 78,398- 73,270 73,270
6,787,313 (360,249) 6,427,064
$ 6,787,313 $ !,564,989 $ 12,352,302
The table above provides a summary of fund balances for the major funds presented in the City’s government-wide financial statements. As of the year ended June 30, 2021, the General Fund had an unassigned fund balance of $6.79 million. The General Fund is the primary operating fund of the City. All other governmental funds include restricted fund balances of $5.8 million for low and moderate income housing, $78 thousand for capital projects, and $73 thousand for street-related projects. Restricted fund balance for capital projects include $37thousand in new development impact fees collected for the first time during the fiscal year.All other governmental funds also includes an unassigned balance of negative $360 thousand, primarily related to unavailable revenue in the Local Transportation Fund which was subsequently received by the City in December 2021.
The General Fund’s unassigned fund balance increased by $2.23 million or 49.1°/s as of June 30, 2021 compared to the prior fiscal year. The General Fund’s unassigned fund balance totaled 73.7°/c of its expenditures and transfers out for the fiscal year ended June 30, 2021.
While the City has an adopted policy requirement for unassigned fund balance to be at least50°/s of annual expenditures, the sufficiency of reserves and working capital in other funds,as well as the continued unpredictability of revenues as a result of the pandemic, should beconsidered when assessing the sufficiency of the balance as of June 30, 2021. Restricted fund balances in all other funds remained relatively unchanged compared to the prior fiscalyear. The table below further details the net change in fund balance from the prior fiscal yearfor the City’s General Fund. 12 Table 5
General Fund Financial Summary
Revenues;
Taxes
Licenses, Permits and Fees
Fines, Forfeitures and Penalties
Investment IncomeIntergovernmental RevenueCharges for ServicesOther Revenue __________________ __________________ __________________ __________________ Total Revenues Expenditures:
Public SafetyFire and AmbulancePlanning, Building & Engineering Community Services
Public Works
Transportation
General GovernmentCapital Expenditures
Debt Service _________________ _________________ _________________ _________________ Total Expenditures Excess(Deficiency) of Revenues
Over(Under) Expenditures
Other Financing Sources(Uses)
Transfers InTransfers Out
Total Other FinancingSources(Uses) _________________ _________________ _________________ _________________ Net Change in Fund Balance nassigned fund balance increased by $2.23
l6.80/o from the prior fiscal year as a result
Fund expenditures were reduced by $1.06
million or 10.5% and transfers out to other funds were also reduced by $262 thousand or62.6°/o, primarily related to decreased subsidies required for Avalon Transit activities. Forcomparison, in the prior fiscal year, the City’s General Fund unassigned fund balance haddecreased by $781 thousand as a result of expenditures and other financing uses exceeding revenues during the fiscal year ended June 30, 2020.
The business-type activities in the government-wide financial statements represent the City’s harbor, sewer, saltwater, solid waste and transportation activities. Unlike the governmentaltype activities, reporting for the business-type activities of an enterprise fund focuses on the 2021 2020 $ Change 0/0 Change
$ 10,050,988 $ 8,097,440 $ 1,953,548 24.1%
505,968 547,566 (41,598) -7.6%
11,299 2,610 8,689 332.9°/u
400 143,316 (142,916) -99.7°/o
225,729 207,428 18,301
444,787 473,709 (28,922) -6.1°/u
129,199 259,874 (130,675) -S0.3°/u
$ 11,368,370 $ 9,731,943 $ 1,636,427 16.8°/c
. $ 1,642,918 $ 1,664,391 $ (21,473) 1.3°/u
2,746,346 2,967,159 (220,813)
627,562 879,117 (251,555) -28.6°/u625,769 796,164 (170,395) -21.4°/u889,307 1,316,619 (427,312) -32.5°/u 2,242,949 2,181,664 61,285 2.S°/n
143,776 177,684 (33,908) -19.l°/u137,012 133,646 3,366 2.5% $ 9,055,639 $ 10,116,444 $ (1,060,805) -103°/c
S 2,312,731 $ (384,501) $ 2,697,232 -701.5°/o
77,838 22,697 55,141 -242.9%
(156,500) (419,000) 262,500 62,S°/o
S (78,662) $ (396,303) $ 317,641 80.2°/o$ 2,234,069 $ (780,804) For the fiscal year ended June 30, 2021, the umillion. Revenues increased by $1.64 million or of increased tax revenues. In addition, General
$ 3,014,873 386.1°/c
13 net position and changes in net position as opposed to a fund balance; therefore a reconciliation between the government-wide financial statements and the proprietary fund financial statements is not necessary. Proprietary fund financial statements consist of a Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, as well as a Statement of Cash Flows. Within the Statement of Cash Flows is a reconciliation ofoperating income reported in the Statement of Revenues, Expenses, and Changes in Net Position to cash provided by operating activities reported in the Statement of Cash Flows. The table below provides as summary of net position by business-type activities.
Table 6
Business-Type ActMties
Fiscal Year Ended June 30, 2021
Harbor Sewer Saltwater Solidwaste Avalon Transit Total
Operating Revenues:
Charges for services $ 7,311,550 $ 2808,759 $ 834,685 $ 1,984,344 $ 43,114 $ 12,982,452Other revenue 11,408 - - - 2,400 13,808 Total Operating Revenues $7,322,958 $2,808,759 $ 834,685 $1,984,344 $ 45,514 $ 12,995,260 Operating Expenses:
Wages, Benefits, andContracts $ 4,825,307 $ 1,765,104 $ 627,300 $ 2,260,647 $ 111,323 $ 9,589,681supplies and Maintenance 1,750,452 389,867 15,198 15,506 28,219 2,199,242Depreciation 516,863 493,213 48,288 69,623 20,265 1,148,252 Total Operating Expenses $7,092,622 $2,648,184 $ 690,786 $2,345,776 $ 159,807 $12,937,175 Operating Income(Loss) $ 230,336 $ 160,575 $ 143,899 $ (361,432) $ (114,293) $ 59,085 Non-Operating Revenues(Expenses)
Taxes $ 191,884 $ - $ - $ - $ - $ 191,884Grants and Other Revenue 21,268 - - 10,110 (2,059) 29,319 tnpairrrrnt Loss - - - - - - Interest Incorr 645 3,212 569 126,738 - 131,164Interest Expense (2,611) (7,185) (2,678) - - (12,474) Total Non-Operating
Revenues(Expenses) $ 211,186 $ (3,973) $ (2,109) $ 136,848 $ (2,059) S 339,893 Capital Contributions and Transfers
Trarsfers In $ 150,000 $ - $ - $ - $ 111,500 $ 261,500Transfers OLt - - - - - - Total capital Contributionsand Transfers $ 150,000 S - $ - $ - S 111,500 $ 261,500 Change in Net Position $ 591,522 $ 155,602 $ 141,790 $ (224,584) $ (4,852) $ 660,478 Net Position at Beginning of
Year $4,010,770 $4,088,060 $ 938,927 $ (146,383) $ 32,523 $ 8,923,897 Net effect of activity betweenthe Internal Service funds andenterprise funds over tin; 22,682 Net Position at End of Year $4,602,292 $4,244,662 $1,080,717 $ (370,967) $ 27,671 $ 9,607,057 As previously noted, the operating revenues in the Harbor, Sewer, and Saltwater fundsexceeded operating expenses, resulting in increases to net position of $591 thousand, $157thousand, and $142 thousand, respectively. All three funds had experienced decreases in net position during the prior fiscal year. Operating and non-operating revenues need to exceed operating expenses at a level sufficient to fund needed capital asset replacement and othercapital improvements. 14 The fiduciary funds basic financial statements consist of a Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position, summarizing the assets, liabilities,and net position of the City’s Private-Purpose Trust fund for the Successor Agency to the Avalon Community Improvement Agency (Successor Agency). The Private-Purpose Trustfund, which has a negative net position, was established to wind down the affairs of the City’s improvement agency as a result of the statewide elimination of redevelopment agencies. Once the enforceable obligations of the Successor Agency have been dissolved the City’s PrivatePurpose Trust fund will be eliminated.
The Successor Agency receives taxes from the State’s Redevelopment Property Tax Trust Fund (RPTTF) every six months to fund enforceable obligations due July 1 to December 31(Period A) and January 1 to June 30 (Period B). Debt service obligations will continue through September 1, 2034; therefore the Successor Agency has a negative net position that willcontinue to diminish as obligations are paid. The final debt service payment is scheduled tobe made September 1, 2034 (fiscal year ending June 30, 2035).Major Fund Budgetary Comparisons Required Supplementary Information follows the notes to the basic financial statements. This includes budgetary comparison schedules for the General Fund and major special revenue funds presented in those statements. These schedules report the original budget adopted andfinal budget for each of these funds as well as a comparison of the final budget to the actual amounts reported in the financial statements.
During the year, with the recommendation from City staff, the City Council revised the City’s budget. Adjustments to the budget were made on an as needed basis to accommodateadditional appropriations and all amendments that result in an increase or decrease in the total budget appropriations are approved by the City Council.
The City’s General Fund actual revenues exceeded the budgeted amount by $1.61 million dollars or l6.4/o. Actual tax revenues exceeded budgeted amounts by $3.58 million, including TOT by $2.20 million, sales tax by $646 thousand, and admission tax by $192 thousand, Given the pandemic’s disruption to non-essential travel and tourism, the City had budgeted visitor-driven revenues to be down approximately 3O0/n for the fiscal year ended June 30, 2021 compared to the fiscal year ended June 30, 2019, which was not impacted by the pandemic. TOT revenues account for over half of the City’s General Fund revenues and actualrevenues significantly exceeded these estimates, particularly during the last quarter of the fiscal year. In addition, the negative budget variances of $1.17 million and $1.01 million for intergovernmental and other revenues, respectively, were due to decreased grant revenues tied to reimbursable capital expenditures that were deferred in the fiscal year.The actual expenditures for the City’s General Fund at year-end were $2.17 million less than final budgeted appropriations. The budget-to-actual variance in appropriations was principallydue to unspent capital expenditures included in budget but deferred to future years in response to the pandemic. The negative variances for Services and Contract Services were the result of certain expenditures tied to revenues that exceeded their budgeted amounts.
For example, the City receives an additional 0.5°/s sales tax add-on revenue, reported as part 15 of sales tax revenues that it distributes to the Catalina Island Medical Center. Sales tax revenues exceeded budget estimates resulting in corresponding pass-through expenses exceeding their amounts budgeted amounts. Similarly, TOT revenues exceeding budgetestimates resulted in pass-through expenditures to the Catalina Island Tourism Authority to exceed budgeted amounts. The City distributes 22°/s of its TOT revenues to the Catalina Island Tourism Authority for the purpose of promoting tourism to the City. Lastly, the positive expenditure variances were the result of non-budgeted cost saving measures implemented in response to the restrictions on non-essential travel imposed during the middle of the fiscal year in response to the pandemic.
Capital Assets
At the close of the fiscal year, the City of Avalon had $34.77 million in capital assets as shown in the table below, with $16.64 million of capital assets for governmental activities and $18.13 million of capital assets for business-type activities.
Table 7
Capital Assets
(in Thousands)
Government Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Non-depreciable assets:
Land S 2,853 $ 2,853 $ - S - $ 2,853 $ 2,853
Construction in progress 1,058 950 365 4,090 1,423 5,040 Total non-depreciable assets $ 3,911 $ 3,803 $ 365 $ 4,090 $ 4,276 $ 7,893 Depreciable assets:
ftnlding and improvements $ 9,563 $ 9,563 $ 5,489 $ 5,488 $ 15,052 $ 15,05119Jrovennts ether than bLUe ng 18,287 18,269 20,473 15,512 38,763 33,781Mac9irery ana equmpnnt 3,639 3,846 3,665 3,874 7,304 7,720Infrastructure - - 6,303 6,186 6,303 6,186 Total depreciable assets $ 31,489 $ 31,678 $ 35,g30 5 31,060 $ 67,419 $ 62,738 Less accumulated depreciation:
Buildings and mrrçraverrents (4,302) (4,060) (3,138) (3,028) $ (7,440) $ (7,088) lmpoven’en:s other than oui’dmnçs (11,299) (10,440) (9,821) (9,394) (21,120) (19,834)Machinem and equipnnt (3,164) (3,226) (2,863) (3,040) (6,047) (6,266)lrfrastructure - (2,318) (2,057) (2,318) (2,057) Total accumulated depreciation $ (18,765) $ (17,726) $ (18,160) $ (17,519) $ (36,925) $ (35,245)Total depreciable assets, net $ 12,724 $ 13,952 $ 17,170 $ 13,541 $ 30,494 $ 27,493 Total capital assets, net $ 16,635 S 17,755 S 18,135 $ 17,631 $ 34,770 $ 35,386 The completion of the Cabrillo Mole ferry terminal substructure rehabilitation resulted in $3.79 million of construction in progress from prior years and $1.32 million of construction costs from the current year, for a total project cost of $5.11 million, to be capitalized as improvements other than buildings. Other capital projects were delayed or deferred during the fiscal year, with $70 thousand added to construction in progress for the Five Corners Pedestrian Improvements project and $45 thousand added to construction in progress for thePebbly Beach Road Revetment project, included in governmental activities. For additionalinformation regarding capital assets refer to Note 4 of the financial statements. 16 Debt Administration
At the close of the fiscal year ended June 30, 2021, the City had long-term obligations of $22.32 million, The table below shows these debt obligations broken out by governmental and business-type activities. During the fiscal year, the City’s debt obligations increased by $1.89 million or 9.3°/o driven by increases to OPEB liabilities, up $1.56 million or 18.7°/s.
TableS
Outstanding Debt at Year End
(in Thousands)
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Description:
con’pensated Absences $ 428 $ 483 $ 262 $ 369 $ 690 $ 852claim Payable 142 121 32 55 174 176capital Lease Liability 351 474 - - 351 474 state Oepartrrent or Boating
& Waterways Loan - - 54 lOS 54 105
Net OPEB Liability 6,112 5,095 3,749 3,211 9,861 8,306
Net Pension Liability 6,618 S,956 4,573 4,563 11,191 10,519 Total Long-Term Liabilities $ 13,651 $ 12,129 $ 8,670 - $ 8,303 $ 22,321 $ 20,432 The increase in OPEB liabilities is attributable to changes in the discount rate, which is the rate used to value the current cost of future OPEB obligations, as there were no other changes to plan provisions, demographic and other assumptions in the actuarial valuation. Thediscount rate, as determined by Governmental Accounting Standards Board (GASB) Statement 75, decreased to 2.49% as of the measurement date primarily due to changes in the index rate for 20-year, tax-exempt municipal bonds. The City has partially funded itsOPEB plan through the establishment of a qualified irrevocable trust in June 2019 with an initial contribution of $250,000 and with additional contributions to be made on an ad-hocbasis.
Considerations, Plans and Projections for Next Fiscal YearCOVID-19 and the measures taken by the County, State, and Federal Government to reduce the spread and transmission of the disease led to significant disruptions to the City’s tQurism industry. Visitor-driven tax revenues and fees account for the majority of revenues in the City’s General Fund and Harbor Fund and the dynamics of an ongoing pandemic have made it difficult to forecast revenues with any certainty. Prior to the pandemic, the City’s operating costs had been outpacing revenue growth over the past several fiscal years, despite minimal changes to staffing levels and services, To ensure continued operations of essential services, including law enforcement and public safety, the City made signification reductions to its operating expenditures through reductions in staffing and contract services, as well as through the deferment of capital improvements. Through these efforts, the City was able tooperate in a sustainable manner, increasing its unassigned fund balance in the General Fundto $6.78 million as of June 30, 2021. 17 To ensure its fiscal sustainability, the City has adopted a more conservative approach to budgeting and more proactive approach to fiscal planning. The City established new financialpolicies outlining reserve and working capital targets for its major funds with the adoption of the budget for the ensuing fiscal year. While the City’s unassigned fund balance in the General Fund exceeded its targeted 500/u of operating expenses, continued focus on expenditure control and revenue growth will be required to ensure the City’s proprietary funds meet theirestablished working capital targets in future years. The City has also maintained many of thecost-saving measures implemented in response to the pandemic in the ensuing budget through June 30, 2022.
The City remains dependent on visitor-driven tax revenues and tees to fund operations and continues to closely monitor for pandemic-related disruptions to the tourism industry. TheCity has experienced strong growth in TOT revenues as pandemic-related restrictions began to lift during the fourth quarter of the fiscal year, with other visitor-driven tax revenues andfees also exceeding pre-pandemic levels over the same period. The City is likely benefittingfrom continued restrictions on international travel, greater ability to travel and work remotely,as well as increased interest in outdoor recreational activities that allow for better socialdistancing. It is uncertain whether these changes reflect a permanent change in consumer behavior. As a result of the continued uncertainties caused by the ongoing pandemic, the Cityintends to use these likely one-time revenues, including federal relief funds, to restorereserves, fund capital replacement, and pay-down existing pension and OPEB obligations.
Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s fiduciary responsibility for the funds it receives. If you have questions about this report or need additional financial information, please contact the City’s Finance Department at:
City of Avalon
Attn: Finance Department
410 Avalon Canyon Road
PD. Box 707
Avalon, CA 90704
18 BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
THE STATEMENT OF NET POSITION AND THE STATEMENT ACTIVITIES One of the most important questions asked about the City’s finances is, “Is the City as a whole better or worse off as a result of this year’s activities?” The Statement of Net Position and the Statementof Activities report information about the City as a whole and about its activities in a way that helpsanswer this question. These statements include all assets and liabilities using the accrual basis ofaccounting, which is similar to the accounting used by most private-sector companies. All of thecurrent year’s revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements report the City’s net position and changes within it. You can think of the City’s net position - the difference between assets/deferred outflows and liabilities/deferred inflows as one way to measure the City’s financial health or financial position. Over time, increases or decreases inthe City’s net position are one indicator of whether its financial health is improving or deteriorating.You will need to consider other non-financial factors such as changes in the City’s property tax baseand the condition of the City’s roads, to assess the overall health of the City.
The Statement of Net Position and the Statement of Activities, present information about the following:Governmental Activities — The City’s basic services are considered to be governmental activities, including (1) public safety, (2) fire and ambulance, (3) planning, building and engineering, (4)community services, (5) public works, and (6) general government. Property taxes, sales taxes and transient occupancy taxes finance most of these activities.
Business-type Activities — The City’s proprietary funds are considered to be business-type activities,including (1) harbor, (2) sewer, (3) saltwater, (4) solid waste, and (5) transportation. 19 (This page intentionally left blank)
CITY OF AVALON
Statement of Net Position
June 30, 2021
(With comparative information for the prior year)
Primary Government
Totals
Governmental Business-type
Activities Activities 2021 2020
Assets:
Current assets:
Cash and investments (note 2) $ 11675,982 2,560,787 14,236,769 12,809,949Restricted cash and investments (note 2) - 2,683,396 2,683,396 2,464,457Receivables net:
Accounts 94,552 616,565 711,117 425,321
Taxes 2,619,014 135,559 2,754,573 1,198,152
Interest 5,753 582 6,335 26,265Due from ACIA Successor Agency 6,043 - 6,043 6,980Notes receivable 292,000 - 292,000 292,000 Internal balances 935,645 (935,645) - -Assets held for resale - - 15,000 Noncurrent assets (nore 4):
Capital assets, not being depreciated 3,910,599 365,042 4,275,641 7,892,869 Capital assets, net of accumulated
depreciation 12,724,461 17,769,669 30,494,130 27,492,567 Total assets 32,264,049 23,195,955 55,460,004 52,623,560 Deferred outi ows of resources:
Deferred outflows - pension relarec 930,785 643,185 1,573,970 1,815,515Deferred ourfows - DPEB related 932,714 572,016 1,504,790 615,802 Total deferred cutfiows of resources 1,863,499 1,215,261 3,078,760 2,431,377 Liabi ties:
Current liabilities:
AccoLrts payable 1,120,085 690,028 1,810,113 1,519,551Interest payable 8,054 2,217 10,281 15,241 Accruec liabuities 251,900 92,961 344,870 321,066Unearned revenue - 126,526 126,526 145,867 Due to other governments - - - 2,400
Noncurrent liabilities:
Due within one year (nnte 5) 405,031 230,735 635,766 823,686Due in more than one year 516,328 116,574 632,902 698,195 Landfill closure obligation - 4,627,461 4,627,461 4,260,290Net pension liability (note 6) 6,617,808 4,572,984 11,190,792 10,519,383Net OPE8 liability (note 7) 6,112,476 3,749,059 9,861,535 8,305,555 Total liabilities 15,031,701 14,208,545 29,240,246 26,611,234 Deferred inflows of resources:
Deferred inflows - pension related 764,210 528,121 1,292,391 1,638,527Deferred inflows -OPEB related 293,863 180,239 474,102 593,594 Total deferred inflows of resources 1,058,133 108flQ 1,766,493 2,232,121 Net position:
Net investment in caoital assets 16,040,730 18,080,910 34,121,700 34,688,435 Restricted for:
Low and moderate income housng 5,773,570 - 5,773,570 5,856,987 Capital Projects 78,398 - 78,398 39,047Transportation 73,270 - 73,270 68,920 unrestricted (3,928,254) (8,586,6) (12,514,913) (14,4410) Total net position $ 18,037,714 9,494,311 27,532,025 26,21 1,582 See accompanying notes to the finandal statements
20 CITY OF AVALON
Statement of Activities
Year ended June 30, 2021
(With comparative information for the prior year)
Program Revenue
Charges Operating Capital
for Grants and Grants and
Functions/programs Expenses Services Contributions Contributions Governmental activities:
Public safety $ 2,125,894 250,847 -Fire and ambulance 2,891,284 365,597Planning, building and engineering 706,440 294,475 291,679 Community services 958,451 72,068 209,015
Public works 1,709,954 44,416 180,443
Transportation 1,253,270 - 1,074,212
General government 2,809,828 40,681 410,252
Total governmental activities 12,455,131 1,068,084 2,165,602 Business-type activities:
Harbor 7,079,561 7,311,550 21,268
Sewer 2,651,585 2,808,759Saltwater 692,250 834,685Solidwaste 2,343,764 1,984,344 10,110Avalon transit 161,866 43,114 - Total business-type activities 12,929,026 12,982,452 31,318 Total $ 25,384,157 14,050,536 2,196,980
General revenues:
Taxes:
Property taxes
Sales taxes
Transient occupancy taxes
Other taxes
Liceneses and permitsInvestment earningsMiscellaneous income Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of yearNet position, end of year See accompanying notes to the financial statements
21 Net (Expense) Revenue and Changes in Net Position
Primary Government
Totals
Governmental 8usiness-type
Activities Activities 2021 2020
(1,875,047) - (1,875,047) (1,892,669)
(2525,687) - (2,525687) (2,915,230)
(120,286) - (120,286) (355,362)(677,367) - (677,367) (1,033,619) (1,485,105) - (1,485,105) (2,154,422)
(179,058) - (179,058) 27,020
(2,358,895) (2,358,895) (2,832,247)(9,221,445) - (9,221,445D (11,156.529J - 253,257 253,257 1,077,928- 157,174 157,174 99,252
- 142,435 142,435 236,290- (349,310) (349,310) (:42,146)- (fl8,l52) (118,752) (907,181) - 84,804 84,804 364,143
(9,221,445) 84,804 (9,136,641) (10,792,386)
1,259,528 - 1,259,528 839,459
1,490,722 - 1,490,722 1,427,939
6,021,549 - 6,021,549 4,504,444
1,178,644 191,884 1,370,528 1,248,383
9,039 - 9,039 4,954
36,376 131,164 167,540 470,808
124,370 13,808 138,178 251,094
(261,500) _iL° - -
9,858,728 5L6 10,457,084 8,747,081
637,283 683,160 1,320,443 (2,045,305)
17,400,431 4j,j51 26,211,582 28,256,887
$ 18,037,714 27,532,025 26,211,582
See accompanying notes to the financial statements
22 (This page intentionally left blank)
GOVERNMENTAL FUND FINANCIAL STATEMENTS
GENERAL FUND
The General Fund has been classified as a major fund and is used to account for resourcestraditionally associated with governments which are not required legally or by sound financial management to be accounted for in another fund.
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose. The following funds have been classified as major funds:
Local Transportation — This fund is used to record allocations made by the Los Angeles County Transportation Commission for the construction of streets, roads, bikeways, pedestrian facilities as well as the City’s transportation system as a whole,
Avalon Housing Authority — This fund is used to account for the activity associated with the City’s continuing housing operations. This fund was created effective February 1, 2012 as a result of legislation enacted by the State of California.
NONMAJOR FUNDS
Nonmajor Funds is the aggregate of all the other governmental funds. 23 CITY OF AVALON
Balance Sheet
Governmental Funds
June 30, 2021
(With comparative information for the prior year)
Special Revenue FundsLocal
Transportation Avalon Housing
General Fund Fund Authority
Assets:
Cash and investments $ 4,677,635 35,607 5,504,004
Receivables, net:
Accounts 84,581 - -Taxes 2,238,644 344,986 -
Interest 1,480 - 3,926
Notes receivable - - 292,000
Due from ACIA Successor Agency - - 6,043Due from other funds (note 3) 857,907 - - Advances to other funds (note 3) 245,419 - -
Total assets $ 8105,666 380,593 5,805,973
Liabilities:
Accounts payable $ 803,774 167,120 4,322Accrued liabilities 174,119 - 1,581 Due to other funds (note 3) - 213,095 26,500
Total liabilities 977,893 380,215 32,403
Deferred inflows of resources:
Unavailable revenue 340,460 334436
Total deferred inflows of resources 340,460 334,436 -
Fund balances:
Non-spendable:
Due from ACIA Successor Agency - - -
Restricted:
Low and moderate income housing - - 5,773,570
Capital projects - - -Street projects - - -
Unassigned 6,787,313 (334,058) -
Total fund balances 6,787,313 (334,058) 5,773,570Total liabilities, deferred inflows of resources and fund balances $ 8,105,666 380,593 5,805,973 See accompanying notes to the financial statements
24 Totals
Non major
Governmental
Funds 2021 2020
142,619 10,359,865 9,932,623
9,971 94,552 106,373
35,384 2,619,014 576,693
- 5,406 22,010 - 292,000 292,000- 6,043 6,980- 857,907 51,122- 245,419 302,000 187,974 14,480,206 11,289,801
21,727 996,943 481,201
3,041 178,741 164,073
18,150 257,745 51,122
42,918 1,433,429 696,396
19,579 694,475 96,848
19,579 694,475 96,848
-
- 937
5,773,570 5,856,987
78,398 78,398 39,25573,270 73,270 68,920
(26,191) 6,427,064 4,530,458
125,477 12,352,302 10,496,557187,974 14,480,206 11,289,801 See accompanying notes to the financial statements
25 (This page intentionally left blank)
CITY OF AVALON
Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2021
Fund balances of governmental funds $ 12,352,302
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Capital assets 32,741,732Accumulated depreciation (16,442,205) Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. 694,475
Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Compensated absences (427,955)Capital lease payable (351,196)Interest payable (8,064) Net pension and OPEB liabilities and related deferred outflows and inflows of resources are not due and payable in the current period and, therefore are not reported in the governmental funds (note 6).
Deferred outflows - pension 918,461Deferred inflows - pension (754,150)Net pension liability (6,530,176)Deferred outflows - OPEB 932,714Deferred inflows OPEB (293,863) Other post employment benefits (6,112,476)
Internal service funds are used by management to charge the costs of employee benefits, liability insurance and vehicle maintenanceto individual funds. The assets and liabilities of the internalservice funds are included in governmental activities in the Statement of Net Position. 1,228,051
Internal service fund receivables/payables representing the cumulative crossover effect of involvement with business-type activities, 90,064 Net position of governmental activities $ 18,037,714
See accompanying notes to the financial statements
26 CITY OF AVALON
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Year ended June 30, 2021
(With comparative information for the prior year)
Special Revenue Funds
Revenues
Local
Transportation
General Fund Fund
Avalon Housing
Authority
Taxes
Licenses, permits, and fees
Fines, forfeitures, and penalties
Investment income
Intergovernmental revenueCharges for servicesOther revenue Total revenues
$ 10,050,988
505,968
11,299
400
225,729
444,787
129,199
11,368,370
Expenditures:
Current:
Public safetyFire and ambulancePlanning, building and engineering Community services
Public works
Transportation
General government:
Services and chargesContract servicesSpecial departmental Capital expenditures
Debt service:
PrincipalInterest
Total expenditures
1,642,918
2,746,346
627,562625,769
889,307
1,569,279
652,240
21,430
143,776
123,299
13,713
9,055,639 1,253,270
9,164
46,454
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses):
Transfers in (note 3)
Transfers out (note 3)
Total other financing sources (uses)
Net change in fund balance
Fund balance, beginning of yearFund balance, end of year 2,312,731
77,838
(156,500)
(78,662)
2,234,0694,553,244
$ 6,787,313
15 5, ODD)
(334,058)(334,058J
(83,4 1j)
(83,417)
5,856,9875,773,570
See accompanying notes to the financial statements
1,074,2121,074,212
3,968
300
4,268
1,253,270
32,06787,685
27 Totals
Non major
Governmental
Funds 2021 2020
169,058 10,220,046 8,253,104 - 505,968 547,566
76,206 87,505 86,301
985 5,353 265,371
- 1,299,941 1,500,811- 444,787 473,709
55,895 185,394 275.693
302,144 12,748,994 11402.555
- 1,642,918 1,664,391- 2,746,346 2,967,159- 636,726 885,304 30,206 702,429 900,595
194,105 1,083,412 1,626,404
- 1,253,270 1,266,363- 1,569,279 1,376,286
10,844 695,151 819,950
- 21,430 33,779- 143,776 185,113- 123,299 119,834 - 13,713 13,812 235,155 10,631,749 11,858,990
66,989 2,117,245 (456,435)
45,000 122,838 144,697
(72,838) (384,338) (441,697)(27,838) (261,500) (297,000) 39,151 1,855,745 (753,435)86,326 10,496,557 11,249,992
125,477 12,352,302 10,496,557
See accompanying notes to the financial statements
28 CITY OF AVALON
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2021
Net changes in fund balances - total governmental funds $ 1,855,745 Amounts reported for governmental activities in the statement of activities is different because:
Governmental funds report capital outlay as expenditures, However, in the statement of activities, the cost of those assets is allocated over theirestimated useful lives as depreciation expense. This is the amount by whichcapital outlays exceeded depreciation in the current period.
Capital outlay 143,767
Depreciation expense (1,166,147)
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debtand changes in other long-term liabilities affect the current financial resourcesof governmental funds. None of these transactions, however, has any affecton net position:
Principal payments 123,299
Change in interest payable on capital leases 2,839
Change in compensated absences 55,332
Change in OPEE obligation and related amounts (392,602) Change in net pension liability and related amounts (605,542) Some revenues reported in the Statement of Activities are not considered to be available to finance current expenditures and therefore are not reported as revenues in the governmental funds. 597,627
Internal service funds are used by management to charge the costs of self-insurance, employee separation costs and vehicle maintenance to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities. 45,647
Internal service fund revenues/expenses representing the cumulative crossover effect of involvement with business-type activities. (22,682) Change in net position of governmental activities 637,283 See accompanying notes to the financial statements
29 PROPRIETARY FUND FINANCIAL STATEMENTS
Harbor — This fund was established to account for all harbor operations.
Sewer — This fund was established to receive and disburse funds collected through sewer service charge fees and sewer facilities charges. This fund is used for the operation and maintenance of sewer disposal facilities and the financing of construction for sewer outlets.Saltwater — This fund was established to receive charges for operation of the City’s saltwater pumping plants and systems.
Solidwaste — This fund was established to account for solid waste collection and disposal costs.Avalon Transit — This fund was established to account for the City’s fixed route, dial-a-ride, ferrycommuter subsidy, and other transportation operations.
Internal Service Funds — These funds are used to account for the financing of goods and services provided by one or more departments to other departments of the City and to other governmentunits, on a cost reimbursement basis. 30 CITY OF AVALON
Statement of Net Position
Proprietary Funds
June 30, 2021
(With comparative information for the prior year)
Business-type Activ,ties
Harbor Sewer Saltwater
Assets:
Current assets:
Cash and investments $ 976,066 237469
Restricted cash and irvestments - - -Receivables, net:
Accounts 612,652 - 1
Taxes 34,367 56,190 13.045
Interest 31 153 27
Assets held for resale - Total current assets 647,050 1,032,409 250,542 Noncurrent assets:
Capital assets, not being depreciated 346,042 19,000 -
Capital assets, net of accumulated
depreciation 11,712,471 4,328.495 1,357,854
Total noncurrent assets 12,058,513 4,347,495 1,357,854
Total assets 12,705,563 5,379,904 1,608,396
Deferred outflows of resources:
Deferred outflows - pension related 585,802 34,969 22,414Deferred outflows - DPEB related 483,001 53,593 35,482 Total deferred outflows of resources 1,068,803 88,562 57,896 Liabilities:
Current liabilities:
Accounts payable 102,056 356,714 86,756
Interest payable 2,217 - -
Accrued liabilities 79,369 6,918 4,335
Unearned revenue 122,881 -
Due to other funos 600,162 - -
Current port on of noncurrent liabilities 217,469 7,117 4,137 Total current liabilities 1,124,164 370,749 95,228
Noncurrent liabilities:
Compensated absences 84,431 3,832 2,227Advances from other !unds - 178,782 66,637 Net pension liability 4,164,990 248,626 159,368
OPEB obligation 3,165,312 351217 232,530
Claims payable - 25,000 -
Loans payable - - -Landfill closure obligation (note 11) - - - Total noncurrent liabilities 7,414,733 807,457 460,762 Total liabilities 8,538,897 1,178,206 555,990
Deferred inflows of resources:
Deferred inflows - pension related 481,002 28,713 18,406Deferred inflows - OPEB related 152,175 16,885 11,179 Total deferred inflows of resources 633,177 45,598 29,585 Net position:
Net investment in capital assets 12,004,772 4,347,495 1,357,854Unrestricted (7,402,480) (102,i) (277,137) Total net position _.4,602,292 4,244,662 1,080,717
Adjustment to repo the cumulative internal balance for the net effect of the activity between the internal service funds and tre enterp Se furcs over t-me Net position of business-type activities
See accompanying notes to the financial statements
31 Governmental Activities -
Business-type Activities Total Enterprise Funds Internal Service Funds Solidwaste Avalon TransLt 2021 2020 2021 2020
1347175 77 2560,787 1,763,035 1,316,117 1,114,291
2,683,396 - 2,683,396 2,464,457 - -
3,912 - 616,565 243,785 - 75,163
31,957 - 135,559 621,459 - -
371 - 582 3,103 347 1,152
- -
- 15,000 - -
4,066,811 77 5,996,889 5,110,839 1,316,464 1,190,606 - - 365,042 4,089,770 - - 342,324 28,525 17,769,669 13,540,863 - 432,896 342,324 28525 18,134,711 17,630,633 - 432,896
4,409,135 28602 24,131,600 22,741,472 1,316.464 1,623,502 -
- 643,185 787,551 12,324 16,811
-
- 572,076 238,068 - -
1,215,261 1,025,619 12,324 16,811
144,380 112 690,028 889,611 123,142 148,739
-
- 2,217 4,338 - -
1,520 819 92,961 83,600 73,168 75,793
3,645 - 126,526 145,867 - -
-
- 600,162 - - -
2,012 - 230,735 265,456 - 120,796
151,557 931 1,742,629 1,388,872 196,310 345,328
1,084 - 91,574 99,110 - -
-
- 245,419 302,000 - -
-
- 4,572,984 4,563,041 87,632 97,409
-
- 3,749,059 3,210,909 - - - - 25,000 25,000 142,208 -
- -
- 53,737 - -
4,627,461 - 4,621,461 4,260,290 - -4,628,545 - 13,311,497 12,514,087 229,840 97,4094,780,102 931 15,054,126 13,902,959 426,150 442,737 - - 528,121 710,752 10,120 15,172-
- 180,239 229,483 - -
708,360 940,235 10,120 15,172
342,324 28,525 18,080,970 17,527,962 - 432,896
(713,291) (854) (8,496,595) (8,604,065) 892,518 749,508 (370,967) 27,671 9,584,375 8,923,897 892,518 1,182,404
(90,064) (112,74)
$ 9,494,311 8,811,151
See accompanying notes to the financial statements
32 CITY OF AVALON
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
Year ended June 30, 2021
(With comparative information for the prior year)
Business-type Activities
Harbor Sewer Saltwater
Operating revenues:
Charges for services $ 7,311,550 2,808,759 834,685
Other revenue 11,408 - -
Total operating revenues 7,322,958 2,808,759 834,685
Operating expenses:
Salaries and benefits 3,852,649 458,832 211,171Contractual services 972,658 1,306,272 416,129Office supplies 3,236Utilities and rent 573,409 317,838 -Repairs and maintenance 325,891 22,999 15,198 Operating supplies 241,906 194Other services and charges 606,010 48,836 - Depreciation 516,863 493,213 48,288
Total operating expenses 7,092,622 2,648,184 690,786
Operating income (loss) 230,336 160,575 143,899
Nonoperating revenues (expenses):
Admissions taxes 191,884 - -
Loss on disposal of capital assets - - -
Grants and other revenues 21,268 - -
Impairment loss - - -Interest income 645 3,212 569Interest expense (2,611) (7,185) (2,678) Total nonoperating revenues
(expenses) 211,186 (3,973) (2,109)
Income (loss) before capital contributions
and transfers 441,522 156,602 141,790
Transfers in (note 3) 150,000 - -Transfers out (note 3) - - - Changes in net position 591,522 156,602 141,790
Net position, beginning of year 4,010,770 4,088,060 938,927 Net position, end of year S 4,602,292 4,244,662 1,080,717 Adjustment for the net effect of current year activity between the internal service funds and the enterprise funds.
Change in net position of business-type activities
See accompanying notes to the financial statements
33 Governmental Activities -
Business-type Activities Total Enterprise Funds Internal Service Funds Solidwaste Avalon Transit 2021 2020 2021 2020
1,984,344 43,114 12,982452 12,243,114 2,756,742 3,696,119 - 2,400 13(803 60,848 - -
1,984,344 45,514 12,996,260 12,303,962 2,756,742 3696.119 162,858 106,384 4,791,394 5,742,259 1,297,653 1,543,421 2,097,789 4,939 4,797,787 4,355,407 532,630 767,872
3,236 2,397 59,938 65,036
11,442 - 902,689 851,831 181,628 185,162
- 807 364,895 481,616 51,082 128,337-
- 242,100 256,884 32,861 97,851
4,064 27,412 686,322 964,509 465,225 448,146
69,623 20,265 1,148,252 1,030,990 97,363 95,273
2,345,776 159,807 12,937,175 13,685,893 2,718,380 3,331,098 (361,432J (114,293) 59,085 (1,381,931) 38,362 365,021
-
- 191,884 108,874 - -
- (2,059) (2,059) - -
10,110 31,378 2,203,254 - -
-
- (605,618) - -
126,738 - 131,164 165,756 7,285 15,081
(12,474) (5,11j) -
136,848 (2,059) 339,893 1,867,149 7,285 15,081
(224,584) (116,352) 398,978 485,218 45,647 380,102
- 111,500 261,500 297,000 - -
(224,584) (4,852) 660,478 782,218 45,647 380,102(146,383) 32,523 1,182,404 802,302(370,967) 27,671 1,228,051 1,182,404 22,682 214,403
$ 683,160 996,621
See accompanying notes to the financial statements
34 CITY OF AVALON
Statement of Cash Flows
Proprietary Funds
Year ended June 30, 2021
(With comparative information for the prior year)
Harbor Sewer Saltwater
Cash Flows from Operating Activities:
Cash received from customers $ 6,988,353 2,986,503 899,308Cash received for operating grants - - - Cash payments to suppliers for goods and services (3118422) (1,520,388) (401,897) Cash payments to employees for services (3,700,062) (472,762) (268,285) Net cash provided by operating activities 169,869 993,353 229,126 Cash Flows from Noncapital Financing Activities:
Cash received from admissions taxes 191,884 -Cash paid to other funds - (41,218) (7,804)Cash received from other funds 750,162 - - Net cash provided by noncapital financing activities 942,046 (41,218) (7,804) Cash Flows from Capital and Related Financing Activities:
Cash payments to acquire capital and other assets (1,533,123) (128,825) - Principal paid on capital-related debt (51,422) - -
Interest paid on capital-related debt (4,732) __j7J) (2,678) Net cash provided by capital and related financing (1,589,277) (136,010) (2,678) activities
Cash Flows from Investing Activities:
Sale of investments held for resale - - Interest received on investments 1,913 3,465 556 Net cash provided by investing activities 1,913 556
Net increase (decrease) in cash and cash equivalents (475,449) 819,590 219,200 Cash and cash equivalents - beginning 475,449 157& 18,269 Cash and cash equivalents - ending 976,066 237,469
Reconciliation of Operating Income (loss) to Net Cash
Provided by Operating Activities
Operating income (loss) $ 230,336 160,575 143,899
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation 516,863 493213 48,288
Other Income 21,268 - -Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (400,362) 1,213 915(Increase) decrease in taxes receivable 44,489 176,531 63,708(Increase) decrease in deferred outflows (163,426) (19,464) (6,752)Increase (decrease) in accounts payable (380,716) 175,103 29,618 Increase (decrease) in accrued liabilities 8,442 648 (188)Increase (decrease) in compensated absences (8,814) (7,284) (5,949)Increase (decrease) in OPEB obligation 464,554 55,698 17,898Increase (decrease) in unearned revenue (22,986) - - Increase (decrease) in net pension liability 79,475 (24,772) (44,760) Increase (decrease) in deferred inflows (196,216) (18,108) (17,551)Increase (decrease) in due to other funds - - - Increase (decrease) in landfill closure obligation - -
Increase (decrease) in claims payable (23,038) - -
Net Cash Provided by Operating Activities $ 169,869 993,353 229,126 Significant non-cash transactions
Landfill closure cost amortization
See acCompanying notes to the financial statements
35 Governmental Activities -
Total Enterprise Funds Internal Service Funds
Solidwaste Avalon Transit 2021 2020 2021 2020
2,210,853 46,062 13,131,079 12,673,485 -
10,110 - 10,110 2,082 - -
(1,735,795) (66,534) (6,843,036) (7,030,146) (1,259,521) (1,828,395) (159,213) (106,384) (4,706,706) (5819,283) (1,304,587) (1,621,747) 325,955 (126,856) 1,591,447 (173,862J 193,736 246,342
-
- 191,884 108,874 - -
-
- (49,022) - - -
- 111,500 861,662 2,800,172 -
111,500 1,004,524 2,909,046
-
- (1,661,948) (4,662,451) - (206,197)
-
- (51,422) (102,671) - -
-
- (14,595) (9,352) - -
(1,727,965) (4,774,474) (206,197)
- 15,000 15,000 - - -
127,751 - 133,685 174,894 8,090 15,556
127,751 15,000 148,685 174,894 8,090 15,556
453,706 (356) 1,016,691 (1,864,396) 201,826 55,701
3,576,865 433 4,227,492 6,091,888 1,114,291 1,058,590
4,030,571 77 5,244,183 4,227,492 1,316,117 1,114,291
(361,432) (114,293) 59,085 (1,381,931) 38,362 365,021
69,623 20,265 1,148,252 1,030,990 97,363 95,273
10,110 - 31,378 2,082 - -
25,337 117 (372,780) 780,484 75,163 (67,905)
231,172 - 485,900 (410,175) - -
- - (189,642) 165,508 4,487 22,728
9,788 (33,376) (199,583) 131,698 (25,597) (7,436)
28 431 9,361 (29,629) (2,625) 1,913
513 - (21,534) 48,562 - -
-
- 538,150 (196,096) - -
3,645 - (19,341) 32,009 - -
-
- 9,943 (15,845) (5,052) (14,426)
-
- (231,875) (109,142) (9,777) (80,513) - -
- (128,044) - -
367,171 - 367,171 (73,031) - -
- (23,038) (20,802) 21,412 (68,313)
325,955 (126,856) 1,591,447 (173,862) 193,736 246,342
367,171 - 367,171 155223
See accompanying notes to the financial statements
36 CITY OF AVALON
Statement of Fiduciary Net Position
Private Purpose Trust Fund
June 30, 2021
(With comparative information for the prior year)
Assets:
Current assets:
Cash and investments (note 2)
Interest receivable
Total current assets
Liabilities:
Current liabilities:
Accounts payable
Due to other governments
Interest payable
Current portion of long-term liabilities:
Bonds payable (note 5)
Total current liabilities
Long-term liabilities:
Bonds payable (note 5)Bond premium
Total longterm liabilities
Total liabilities
Net position
Held in trust for successor agency
Total net position (deficit)
2021 2020
$ 2,325,715 2,320,849
19 85
2,325,734 2,320,934
- 25,959
6,043 6,042
284,724 302,425
1,308,g54 1,254,9251,599,721 1,589,351
17,856,046 19,080,075
530,536 617,350
18,386,582 19,697,42519,986,303 21,286,776
(17,650,569) (18,965,842)
S (17,660,569) (18,965,842)
See accompanying notes to the financial statements
37 CITY OF AVALON
Statement of Changes in Fiduciary Net Position
Private Purpose Trust Fund
Year ended June 30, 2021
(With comparative information for the prior year)
2021 2020
Additions:
Taxes $ 2,342,326 2,485,066
Investment income 310 6,146
Total additions 2,342,636 2,491,212
Deductions:
Community development 261,150 255,603Interest 776,213 822,315 Total deductions 1,037,363 1,077,918
Change in net position 1,305,273 1,413,294
Net position, beginning of year (18,965,842) (20,379,136)Net position, end of year $ (17,660,569) (18,965,842) See accompanying notes to the financial statements
38 (This page intentionally left blank)
CITY OF AVALON
Notes to the Financial Statements
Year ended June 30, 2021
(1) Summary of Significant Accounting Policies
The basic financial statements of the City of Avalon, California, (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America, The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The moresignificant of the City’s accounting policies are described below. (a) Description of the Reporting Entity
The City of Avalon was incorporated in 1g13 under the General Laws of the State of California. The City operates under a Council-Manager form of government and providesthe following municipal services to its citizens: public safety (police and fire), harbor,streets, water sanitation, health and social services, public improvements, planning andzoning, and general administrative services.
The financial reporting entity presented in the accompanying basic financial statements consists of the primary government, organizations for which the primary government isfinanciatly accountable and other organizations for which the nature and significance oftheir 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 and Measurement Focus
Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financialstatements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements.Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, andliabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from non-exchange transaction are recognized in accordance with therequirements of GASB Statement No. 33.
Government-wide Financial StatementsGovernment-wide financial statements display information about the reportinggovernment as a whole, except for its fiduciary activities. These statements includeseparate columns for the governmental and business-type activities of the primarygovernment (including its blended component units). Eliminations have been made inthe Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenseshave not been allocated as indirect expenses to the various functions of the City.
Program revenues include charges for services and payments made by parties outside 39 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) of the reporting government’s citizenry if that money is restricted to a particularprogram. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.
As a general rule the effect of interfund activity has been eliminated from the government-wide statements. Amounts paid to acquire capital assets have beenreclassified as an addition to the related asset in the government-wide financialstatements, rather than reporting them as expenditures. Proceeds of long-term debtare recorded as a liability in the government-wide financial statements, rather than another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Theoperations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate.Governmental resources are allocated to and accounted for in individual funds basedupon the purposes for which they are to be spent and the means by which spendingactivities are controlled.
Net position is classified in the following categories:
In the government-wide financial statements, net position is reported in one of threecategories:• Net Investment in CaQital Assets — This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to theacquisition, construction, or improvement of capital assets. • Restricted Net Position — This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted Net Position — This amount is all net position that does not meet the definition of “Net Investment in Capital Assets” or “Restricted Net Position”.
Fund Financial StatementsFund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds inthe aggregate for governmental and proprietary funds. Fiduciary statements includefinancial information for fiduciary funds and similar component units. Fiduciary funds of 40 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.
Governmental FundsIn the fund financial statements, governmental funds are presented using the modifiedaccrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts werecollected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a sixty day availability period. The City accrues the following revenue types: taxes, licenses, fines and forfeitures, and other miscellaneous revenues.
Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they arerecognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the currentfinancial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of available spendable resources.Governmental fund operating statements present increases (revenues and otherfinancing sources) and decreases (expenditures and other financing uses) in net currentassets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Sincethey do not affect net current assets, such long-term amounts are not recognized asgovernmental fund type expenditures or fund liabilities.Amounts expended to acquire capital assets are recorded as expenditures in the yearthat resources were expended, rather than as fund assets. The proceeds of long-termdebt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. 41 CITY OF AVALON
Notes to the Financial Statements
(Continued)
Ci.) Summary of Significant Accounting Policies (Continued) Governmental Fund Balances
Fund balances are reported in the fund statements in the following classifications:
Nonspendable Fund Balance
Nonspendable Fund Balance — this includes amounts that cannot be spent because they are either not spendable in form (such as inventory) or legally or contractually requiredto be maintained intact (such as endowments).Spendable Fund Balance Restricted Fund Balance — This includes amounts that can be spent only for specific purposes stipulated by legal requirements imposed by other governments, externalresource providers, or creditors. City Council imposed restrictions do not createrestricted fund balance unless the legal document that initially authorized the revenue(associated with that portion of fund balance) also included language that specified thelimited use for which the authorized revenues were to be expended.
Committed Fund Balance — This includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (for example, resolution, ordinance, minutes action, etc.) that it employed to previously commit those amounts. If the Council action that limits the use of the funds was separate from theaction that initially created the revenues that form the basis for the fund balance, thenthe resultant fund balance is considered to be committed, not restricted. The Cityconsiders a resolution to constitute a formal action of the City Council for the purposesof establishing committed fund balance.Assigned Fund Balance — This includes amounts that are intended to be used for specific purposes as indicated either by the Council or by persons to whom authority has been delegated to assign amounts for specific purposes. The City Council has not delegatedsuch authority as of the date of this report.
Unassigned Fund Balance — This includes the remaining spendable amounts which arenot included in one of the other classifications.
It is the City’s policy that restricted resources will be applied first, followed by (in orderof application) committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the City Council.
Proprietary and Fiduciary Funds
The City’s enterprise funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues arerecognized when they are earned and expenses are recognized when the related goods 42 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements presentincreases (revenues) and decreases (expenses) in total net position.Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions arethose in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings result from non-exchange transactions or ancillary activities. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.All revenues and expenses not meeting this definition are reported as nonoperatingexpenses. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expense. Proceeds oflong-term debt are recorded as a liability in the proprietary fund financial statements,rather than as another financing source.
Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditure.
The private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.
(c) Major Funds and Fiduciary Fund Types
The City reports the following major governmental funds:
General Fund — The General Fund is the general operating fund of the City. All general tax revenues and other receipts not allocated by law or contractual agreement to otherfunds are accounted for in this fund. Expenditures of this fund include general operating costs not paid through other funds.
Local Transportation Fund — The Local Transportation Special Revenue Fund is used torecord Measure R funds, Prop lB funds, and allocations made by the Los Angeles County Transportation Commission for the construction of streets, roads, bikeways, pedestrianfacilities and the City’s transportation system. Separate annual audited financial statements from the Los Angeles County Metropolitan Transportation Authority (MTA)can be obtained from the City at www.cityofavalon.com/finance.Avalon Housing Authority Fund — The Avalon Housing Authority Fund is used to accountfor the activity of the City’s continuing housing operations. This fund was createdeffective February 1, 2012 in response to legislation enacted by the State of Californiato dissolve California Redevelopment Agencies. Separate Annual Housing Reports can 43 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) be obtained from the City at www.cityofavalon.com/finance.
The City reports the following major enterprise funds:
Harbor Fund — The Harbor Fund is used to account for all harbor operations.
Sewer Fund — The Sewer Fund is used to receive and disburse funds collected throughsewer service charge fees and sewer facilities charges. These funds are used for theoperation and maintenance of sewer disposal facilities and the financing of constructionof outlet sewers.Saltwater Fund — The Saltwater Fund is used to receive charges for operation of theCity’s saltwater pumping plants and systems.Solidwaste Fund — The Solidwaste Fund is used to account for solid waste collection anddisposal costs.
Avalon Transit Fund — The Avalon Transit Fund is used to account for the City’s fixed route, dial-a-ride, ferry commuter subsidy, and other transportation operations.
The City reports the following fund types:
Special Revenue Funds — Used to account for the proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes.
Internal Service Funds — Used to account for the financing of goods and services provided by one or more departments or agencies to other departments or agencies of the City and to other government units, on a cost reimbursement basis.
Capital Projects Funds — Used to account for financial resources segregated for theacquisition and construction of major capital facilities, other than those financed by the proprietary funds).
Additionally, the City reports the following fiduciary fund type:
Private Purpose Trust Fund — Used to account for the activities related to the Successor Agency to Avalon Community Improvement Agency (ACIA) and the revenue receivedfrom the Redevelopment Property Tax Trust Fund (RPTTF) to fund the recognized obligations of ACIA and administrative costs.
(d) Cash and Investments
The City pools cash and investments of all funds, except for assets held by fiscal agents.
Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by pooled investments is allocated to the various funds based on each fund’s average cash and investment balance. 44 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Highly liquid 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. Market value is used as fair value for those securities for which market quotations are readily available.
For purposes of the statement of cash flow, cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.
Ce) Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either due to/from other funds (i.e., the current portion of interfund loans) or advances to/from other funds (i.e., thenoncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmentwide financial statements as internal balances.
Externally related transactions are accounted for as revenue, expenditures, or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions,except quasi-external transactions and reimbursements, are reported as transfers. (f) Capital Assets and Depreciation
Capital assets, which consist of land, buildings and improvements, improvements other than buildings, machinery and equipment, vehicles, infrastructure and construction in progress, are reported in the government-wide financial statements. Capital assets are defined by the City as assets with an initial cost of more than $5,000 and an estimated life in excess of 1 year; and infrastructure assets of more than $50,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value ofthe asset or materially extend asset lives are not capitalized.Capital assets used in operations are depreciated over their estimated useful lives usingthe straight-line method in the government-wide statements. Depreciation is chargedas an expense against operations, and accumulated depreciation is reported in the respective statement of net position. The ranges of estimated useful lives used for depreciation purposes for each capital asset class are as follows:
Buildings and improvements 20 - 50 yearsImprovements other than buildings 5 - 20 yearsMachinery and equipment 5 - 20 years Vehicles S - 20 years
Infrastructure 10 - 50 years
45 CITY OF AVALON
Notes to the Financial Statements
fcontinued)
(1) Summary of Significant Accounting Policies (Continued) (g) Compensated Absences
The City is obligated to compensate employees for all earned but unused vacation days accumulated. Liabilities for vacation, holiday benefits, sick pay and compensatory timeare recorded as earned by employees. City employees earn from 10 to 20 vacation days each year, depending upon length of service.
In governmental funds, compensated absences (accumulated vacation, holiday benefits,sick pay and compensatory time) are recorded as an expenditure and a fund liability of the governmental fund that will pay them (primarily the General Fund), if they are expected to be liquidated with currently expendable available resources. The balance of unpaid compensated absences is recorded as a long-term liability, as these amountswill be liquidated from future resources rather than currently expendable available resources upon retirement or separation of employment. The expenses for accumulated compensated absences are recorded in the General Administration Internal Service Fund. Unpaid compensated absences in proprietary funds are recorded as liabilities in those funds as vested benefits to the employees.
(h) ProDerty Taxes
Property taxes are levied annually in July by the Los Angeles County Assessor for the succeeding fiscal year. Taxes are billed in August and are due and collectible in first andsecond installments on November 1 and March 1, respectively. The first installment isconsidered delinquent if not paid by December 10, and the second installment is considered delinquent if not paid by April 10 of each year. All unpaid taxes as of January 1 of the following year are considered delinquent and attach an enforceable lien on the related property on that date.
Distributions of collected property taxes to the City are made by the County in accordance with the following schedule:
Secured:
35°/o of tax levy December
50/s of tax levy JanuaryBalance of first installment collections February 75°/a of adjusted tax, less previous remittance AprilBalance of second installment collections May Balance of collections for fiscal year July/August
Unsecured:
80°/a of tax levy August
Balance of March -August collections October
September - December collections March
January -June collections August
46 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) (i) Deferred Outflows/Inflows of Resources
When applicable, the statement of net position and balance sheet will report a separatesection for deferred outflows of resources. Deferred outflows of resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, are not recognized as an expense or expenditure until that time. The City has two items that qualify for reporting in this category, deferred outflow ofresources for pension and deferred outflow of resources for Other Post-Employment Benefits (“OPEB”).
When applicable, the statement of net position and the balance sheet will report a separate section for deferred inflows of resources. Deferred inflows of resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as an inflow of resources (revenue) until that time. The City has three items that qualify for reporting in this category, deferred inflows — pension related, deferred inflows — OPEB related, and unavailable revenue. (j) Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows ofresources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CaIPERS Financial Office, For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. CaIPERS audited financial statements are publicly available reports that can be obtained at CaIPERS’ website under Forms and Publications.GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes, For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) June 30, 2029 to June 30, 2020
(k) Other Post Employment 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 and informationabout the plan (OPEB Plan), have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
47 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Generally accepted accounting principles require that the reported results must pertain to liability information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2019
Measurement Date (MD) June 30, 2020
Measurement Period (MP) June 30, 2019 to June 30, 2020
(I) Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques usedto measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
• Quoted prices for similar assets or liabilities in active markets;• Quoted prices for identical or similar assets or liabilities in markets that are inactive;
• Inputs other than quoted prices that are observable for the asset or liability;• Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (includingassumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data. (m) Use of Estimates
The preparation of basic 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 and liabilities anddisclosure of contingent assets and liabilities at the date of the basic financial statementsand the reported amounts of revenues and expenditures during the reporting period.
Actual results could differ from those estimates.
48 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) (n) Prior Year Data
Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with generally acceptedaccounting principles. Accordingly, such information should be read in conjunction with the government’s prior year financial statements, from which this selected financial data was derived. In addition, certain minor reclassifications of the prior year data have been made to enhance their comparability to the current year. (2) Cash and Investments
Cash and investments at June 30, 2021 are classified in the accompanying financial statements as follows:
Primary
Government
Statement of net position
Cash and investments $ 14,236769
Restricted cash and investments 2,683,396
Statement of fiduciary net position
Cash and investments 2,325,715
Total cash and investments
Cash and investments at June 30, 2021 consisted of the following:
Primary
Government
Petty cash $ 500
Demand deposits 3,947,475Investments 10,957,421Investments with fiscal agent 4,340,484 Total cash and investments 19,245,880
Investments Authorized by the California Government Code and the City’s Investment Policy 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. The table 4g
CITY OF AVALON
Notes to the Financial Statements
(Continued)
(2) Cash and Investments (Continued)
also identifies certain provisions of 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. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Investments held by fiscal agent of $2,683,396 is jointly registered in the name of the City and Cal Recycle and is not subject to the City’s investment policy.
Maximum Maximum
Percentage or Invesment
Authorized Maximum Amount of in One
Investment Type Maturity Portfolio* Issuer
United States Treasury Obligations 5 years N/A N/A
Certificates of Deposits 5 years N/A $ 250,000
Local Agency Investment Fund (LAIF) N/A $ 75,000,000 75,000,000Los Angeles County Investment Fund (LACIF) N/A N/A N/AMoney Market Mutual Funds N/A 15% N/A *Excluding amounts held by bond trustee that are not subject to CaliforniaGovernment Code restrictions.
N/A - Not Applicable
Investments Authorized by Debt Agreements
tnvestments of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or theCity’s investment policy. Investments authorized for funds held by the bond trustee include, United States Treasury Obligations or any other federal agency obligations for which the full faith and credit of the United States are pledged for payment of principal and interest, United States Government Sponsored Agency Securities, Commercial Paper, Local Agency Bonds, Banker’s Acceptances, Money Market Mutual Funds and Investment Contracts. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Banker’s Acceptances, which are limited to one year.
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fairvalue 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 their exposure to interest rate risk is by purchasing, a combination of shorter termand 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 providethe cash flow and liquidity needed for operations. Information about 50 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(2) Cash and Investments (Continuedi
the sensitivity of the fair values of the investments (including investments held by bondtrustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the investments by maturity:
Remaining Maturity
(in Months)
Investment Type: Total Within 12 Beyond 12
LAIF $ 9,137,988 9,137,988 -
Certificate of deposits 1,819,433 1,819,433 -
Held by trustee:
Money market mutual funds 1,657,088 1,657,088 -Mutual funds 2,683,396 2,683,396 - Total $ 15,297,905 15,297,905 -
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obhgation 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 minimum rating as requiredby (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, as reported by Standards and Poor’s, as of year-end foreach investment type:
Minimum Legal Rating
Investment Type: Total Rating AAA Unrated
LAIF $ 9,137,988 N/A - 9,137,988
Certificate of deposits 1,819,433 N/A - 1,819,433
Held by bond trustee:
Money market mutual funds 1,657,088 A 1,657,088 -Mutual funds 2,683,396 A 2,683,396 - Total $ 15,297,905 4,340,484 10,957,421
51 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(2) Cash and Investments (Continued
Fair Value Measurement
The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. The City has the following recurring fair value measurements as of June 30, 2021:
Fair Value Hierarchy
Level 1 Level 2 Level 3 Total
Certificates of deposit $ 1,819,433 - 1,819,433
Held by trustee:
Mutual funds 2,683,396 - - 2,683,396
Investments not subject to fair
value hierarchy:
LAIF - - - 9,137,988Money market mutual funds _____________ - 1,657,088 Total $ 2,683,396 1,819,433 - 15,297,905
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.
Custodial Credit Risk:Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be ableto recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterpart (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of itsinvestment or collateral securities that are in the possession of another party. The California Government Code, and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other thanthe following, provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securitiesin an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).
The market value of the pledged securities in the collateral pool must equal at least 110% ofthe total amount deposited by the public agencies. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes having a value of 150°/s of the secured public deposits. At June 30, 2021, the City’s deposits (bank balances) were insured by the Federal Deposit Insurance Corporation or collateralized asrequired under California Law. 52 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(2) Cash and Investments (Continued
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurerof the State of California. The fair value of the City’s investment in this pool is (reported in the accompanying financial statements at amounts based upon the City’s pro-rata share ofthe fair value provided by LAIF for the entire LAW portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting recordsmaintained by LAIF, which are recorded on an amortized cost basis. (3) Interfund Balances and Transfers
The composition of interfund balances as of June 30, 2021 is as follows:
Advances to Advances from
other funds other funds Amount
General Fund Sewer Fund $ 178,782 (a)General Fund Saltwater Fund 66,637 (a) $ 245,419
(a) The advances from the General Fund to the Sewer and Saltwater funds were to provide financial assistance for capital improvements to the water and wastewater systems.
Fund Reporting Fund Reporting
Payable Receivable Amount
Local Transportation Fund General Fund $ 213,095 (a)
Avalon Housing Authority General Fund 26,500 (b)
Non-Major Gov’t Funds General Fund 18,150 (a)Harbor Fund General Fund 600,162 (a) $ 857,907
(a) These amounts due to the General Fund are short term borrowings to cover negative cash balances.
(b) This amount due to the General Fund is a short term borrowing to cover administrative expenses.
53 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(3) Interfund Balances and Transfers (Continued)
Transfers in
Harbor Fund
Transfers out
Local Transportation Fund
Amount
(a) To transfer funds from the General fund to the Avalon Transit fund to cover operating expenses.
(b) To transfer funds frQm the General fund to the Traffic Control and Safety non-major Governmental fund to cover operations expense within the funds. (c) To transfer funds from the Street non-major Governmental fund to the General fund to fund street related capital expenditures used as local matching funds. (d) To transfer funds from the Local Transportation fund to the General fund ($5,000) and the Harbor fund ($150,000) to cover capital related expenditures. (4) Capital Assets
A summary of changes in the capital assets at June 30, 2021 is as follows:
Landconstruction in progress
Total non-depreciable assets
Depreciable assets:
Building and improvements
Improvements other than buildings
Machinery and equipment
Total depreciable assets
Less accumulated depreciation:
Buildings and improvementsImprovements other than buildings Machinery and equipment
Total accumulated depreciationTotal depreciable assetsTotal capital assets $ 2,852,600
950,499
3803,099
2,852,600
1,057,999
3,910, 599
9,563,598
18,286,611
3,639,574
31,489,783
(4,301,546)
(11,299,246)
(3,164,53Q)
18, 165,3 22)12,724,46116,635,060
Avalon Transit Fund
Non-Major Gov’t Funds
General FundGeneral Fund
General FundGeneral Fund
Non-Major Gov’t FundsLocal Transportation Fund
$ 111,500
45,000
72,838
5,000
150,000
$ 384,338
(a)(b)(c)(d)
(d)
Governmental Activities:
Non-depreciable assets
Balance at
7/1/2020 Additions Deletions
Balance at
6/30/202 1
125,167125,167
9,563,598 -
18,268,944 17,667
3,845,727 18,600
31,678,269 36,267
(4,060,524) (241,022)
(10,440,041) (859,205)
(3,226,000) (163,283)
(17,726,565) (1,263,510)
13,951,704 (1,227,243)
$ 17,754,803 (1,102,076)
(17,667)(17,667)
(224,753)(224,753)
224,753224,753
(17667)
54 (4) Capital Assets (Continued’)
CITY OF AVALON
(Continued)
Non-depreciable assets:
Construction in progress
Depreciable assets:
Buildings and improvementsInproverents other than buidings Machnery and eqWpment
l9frasturture
Total depreciable assets
Less accumuated d©reciatjcq:
Buildings and improvements
Pnproverents other than buidings
Machinery and equipmentI9frastructure
Total accumulated depreciationTotal depreciable assetsTotal capital assets $ 4,089,770
5,487,830
15,511,878
3,874,681
6,185,978
31,060,367
(3,028,116)(9,394,353)(3,039,673)(2,057,362)
(17,519,504)
13.540,863
S 17,630,633
(193,963)
(316,007)(509,97J
(5,169,083) 365,042
5,488,996
20,472,909
3,664637 6,302,971
35,929,513
(3,137,562)(9,821,062)(2,883,441)(2,317,779)
(18,159,844)
17 ,7 69, 66918,134,711
Depreciation expense was charged to functions! programs of the governmental activities as follows:
Governmental Activities
Public safety
Planning, building and engineering
Community services
Public works
General government
Internal service funds depreciation charged to programs Total depreciation expense - governmental activities
Business-Type Activities
Harbor
Sewer
Salt waterSolid waste
Avalon Transit
Total depreciation expense - business-type activities
$ 10,603
25,269
197,675
580,815351,785
97,363
$ 1,263,510
$ 516,863
493,213
48,28869,623
20,265
$ 1,148,252
Notes to the Financial Statements
Business-Type Activities
Balance at
7/1/2020 Additions Deletions Transfers
Balance at
6/30/202 1
1,444,355
1,166
91,874
116,993
210,033
(109,446)(620,672)(157,717)(260,417)
(1,148,252)
(938,219)
506,136
5,154,994
14,089
5,169,083
5,169,083
193,963
313,949507,912
(2
(2,058)
55 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(5) Long-term Liabilities
A summary of changes in long-term liabilities for the year ended June 30, 2021 is as follows:
Balance at Balance at Due within One
7/1/2020 Additions Deletions 6/30/2021 Year
Governmental Activitiescompensated absences $ 483,285 7,205 (62,536) 427,954 278,171 Claims payable 120,797 21,412 - 142,209 - Capital lease liability 474,495 - (123299) 351,196 126,860 Total Governmental $ 1,078,577 28,617 (185,835) 921,359 405,031 Business-tyoe Activities
state Department of
Boating & Waterways Loan $ 105,159 - (51,422) 53,737 53,737 Compensated absences 283,174 4,405 (25,939) 261,640 170,066 Claims payable 54,972 - (23,040) 31,932
Total Business-type $ 443,305 4,405 (100,401) 347,309 230,735 ACIA successor Agency
Bonds Payable:
2003A TAB $ 1,360,000 - - 1,360,000 -2015A TAB 13,950,000 - (900,000) 13,050,000 945,0002015B TAB 5,025,000 - (270,000) 4,755,000 285,000Bond prem:um 617,350 - (86,814) 530,536 78,954 Total ACIA Successor Agency $ 20,952,350 - (1,256,814) 19,695,536 1,308,954 Compensated absences have typically been paid from the City’s General Fund and the Enterprise Funds,
ACIA Successor Agency Activities
(a) 2003 Tax Allocation Bonds, Series A
On December 3, 2003, the Agency issued $27,350,000 in Tax Allocation Refunding Bonds, Series A, to refund the 1998 Refunding Tax Allocation Bonds and to financeredevelopment activities.
Serial bonds mature annually each September 1 through 2023. In addition, term bonds in the amount of $5,890,000 and $6,185,000 mature September 1, 2029 and September 1, 2034, respectively. The term bonds are subject to mandatory sinking fund requirements that commence September 1, 2024 and September 1, 2030, respectively.
The bonds bear interest at rates ranging from 2.OO0/o to 4.950/o. Interest is payable semiannually, on March 1 and September 1. These bonds were partially refunded on July 1, 2015 through issuance of the 2015 Tax Allocation Bonds. 56 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(5) Long-term Liabilities (Continued’)
The annual debt service requirements on these bonds at June 30, 2021, were as follows:
Year ending
June 30, Principal Interest Total
2022 $ - 67,320 67,320
2023
- 67,320 67,320
2024 - 67,320 67,320
2025
- 67,320 67,320
2026
- 67,320 67,320
2027-2031 - 336,600 336,600
2032-2035 1,360,000 269,280 1,629,280
Total $ 1,360,000 942,480 2,302,480
(b) 2015 Tax Allocation Refunding Bonds, Series A
On July 1, 2015 the Agency issued $17,160,000 Tax Allocation Refunding Bonds, Series A, to partially refund the 2003A Tax Allocation Bonds and fully refund the 2003 Tax Allocation Bonds, Series B. The net proceeds of the 2015A Bonds were deposited into an irrevocable trust with an escrow agent for payment of a portion of the outstanding 2003A Tax Allocation Bonds. The refunding of a portion of the 2003A Tax Allocation Bonds resulted in a reduction in total debt service payments over the next 19 years by $2.2 million, and an economic gain of $1.7 million.
A term bond in the amount of $3,450,000 matures September 1, 2033. The term bond is subject to mandatory sinking fund requirements that commence September 1, 2031, September 1, 2032 and September 1, 2033. The term bond bears interest at the rate of 4.00%. The 2015 Tax Allocation Refunding Bonds includes principal installments annually from September 2016 to September 2033 with interest payable semi-annually from September 2016 to September 2033 at an interest rate between 2.00°/s and
5.00°/n.
The annual debt service requirements on these bonds at June 30, 2021, were as follows:
Year ending
June 30, Principal Interest Total
2022 $ 945,000 547,963 1,492,963
2023 900,000 501,838 1,401,838
2024 945,000 455,713 1,400,713
2025 995,000 407,213 1,402,213
2026 860,000 360,838 1,220,838
2027-2031 4,955,000 1,168,969 6,123,969
2032-2034 3,450,000 210,600 3,660,600
Total Q00O 3,653,134 16,703,134
57 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(5) Long-term Liabilities (Continued
(c) 2015 Tax Allocation Refunding Bonds, Series B
On July 1, 2015, the Agency issued $6,035,000 Tax Allocation Refunding Bonds, Series B, to partially refund the 2003A Tax Allocation Bonds and fully refund the 2003B Tax Allocation Bonds. The net proceeds of the 2015B Bonds were deposited into an irrevocable trust with an escrow agent for payment of a portion of the 2003A Tax Allocation Bonds and a portion of the 2003B Tax Allocation Bonds. As a result of these payments the 2003B Tax Allocation Bonds are considered defeased and the liability for the bonds has been removed from the statement of Net Position. The refunding of a portion of the 2003A Tax Allocation Bonds and the 2003B Tax Allocation Bonds resulted in a reduction in total debt service payments over the next 19 years by $1.0 million, and an economic gain of $0.6 million.
Term bonds in the amount of $1,530,000 and $1,355,000 mature September 1, 2030, and September 1, 2033, respectively. The term bonds are subject to mandatory sinking fund requirements that commence September 1, 2030 and September 1, 2033, respectively.
The term bonds bear interest at rates of 4.75°/s and 5.00°/s, respectively. The 2015 Tax Allocation Refunding Bonds Series B includes principal installments annually fromSeptember 2016 to September 2033 with interest payable semi-annually from September 2016 to September 2033 at an interest rate between 1.00% and 5.00%.
The annual debt service requirements on these bonds at June 30, 2021, were as follows:
Year ending
June 30, Principal Interest Total
2022 $ 285,000 219,319 504,319
2023 295,000 210,638 505,638
2024 305,000 200,475 505,4752025 315,000 188,844 503,844 2026 330,000 176,247 506,247
2027-2031 1,870,000 653,950 2,523,950
2032-2034 1,355,000 181,363 1,536,363
Total $ 4,755,000 1,830,836 6 585 836
(d) Pledged Revenues
The AdA Successor Agency debt issues are collateralized by the pledging of tax increment revenue, The amount and term of the remainder of these commitments areindicated in the debt service to maturity tables presented in the accompanying notes.
The purpose for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. 58 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(5) Long-term Liabilities (Continued
As a result of the state’s action to dissolve all redevelopment agencies in the State of California, the Successor Agency to the dissolved Avalon Community Improvement Agency no longer receives the full amount of tax increment previously pledged by the dissolved redevelopment agency to its bondholders. In its place is a new revenue stream, Redevelopment Property Tax Trust Fund distributions (RPTTF), provided to the Successor Agency that represents only that portion of tax increment that is necessary to pay for the approved enforceable obligations that come due for that fiscal year.
For the year ended June 30, 2021, annual pledged revenues of $2,342,326 covered debt service requirements.
(e) Advances from the County of Los Angeles
The former ACIA and the County of Los Angeles entered into an agreement dated December 13, 1983 whereby the County agreed to defer its share of tax increment (County Deferrals) generated within the project area and remit it to the Agency to meet the Agency’s debt service obligations. Per the agreement the County Deferrals accrued simple interest of 501c for the year following the origination of the deferral amount. After that, no further interest accrues. The County Deferrals were payable from property tax increment revenues received by the Agency in excess of its debt service requirements.
After the dissolution of redevelopment, the County has been making repayments of County Deferrals as Redevelopment Property Tax Trust Funds (RPTTF) are available; no payment was made in the fiscal year ending June 30, 2021. There is no fixed payment schedule for the remaining $2,324,257 owed as it depends on various factors pursuant to the agreement. The accompanying financial statements do not reflect a liability to the City for this matter.
Business-tvDe Activities
(a) Loans Payable from the State Department of Boating and Waterways A summary of loans payable from the State Department of Boating and Waterways atJune 30, 2021 is as follows:
Amount
Outstanding
Original Issue $859,101, due in annual installments of $56,155 through August 1, 2021, including interest of 4.S% per annum $ 53737 Total S 53737
59 CITY OF AVALON
Notes to the Financial Statements
(5) tong-term Liabilities (Continued)
The annual debt service requirements on these loans payable at June 30, 2021, were as follows:
Year Ending
June 30,
2022
Total
Principal
$ 53,737
$ 53,737
Interest
4,731
4,731
Total
58,468
58,468
Governmental Activities
Capital Leases
During the year ending June 30, 2017 the City of Avalon entered into a lease agreement for financing the acquisition of equipment and artificial turf valued at $831,782. The equipment and turf has a ten-year estimated useful life. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the inception date.
The future minimum lease obligations and the val
as of June 30, 2021 were as follows:
Year Endip June 30,
ue of these minimum lease payments
202220232024
Total minimum lease payments
Less: amount representing interest
Value of minimum lease payments
$ 137,010
137,010
96,520
370,540
(19,343)
$ 351,197
(6) Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (fire) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California PublicEmployees’ Retirement System (CaIPERS). Benefit provisions under the Plans are establishedby State statute and City resolution. CaIPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CaIPERS website, (Continued)
60 CITY OF AVALON
(6) Pension Plan (Continued)
Notes to the Financial Statements
(Continued)
Benefits Provided
CaIPERS provides service retirement and disability benefits, annual cost of living adjustmentsand death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment.
The Plans’ provisions and benefits in effect at June 30, ‘2021, are summarized as follows:
Hire dateBenefit formulaBenefit vesting scheduleBenefit paymentsRetirement ageRequired employee contribution ratesRequired employer contribution ratesHire dateBenefit formulaBenefit vesting scheduleBenefit paymentsRetirement ageRequired employee contribution ratesRequired employer contribution rates On or after
January 1, 2013
2.70/o © 57
5 years of
service
monthly for life
54 54
EmDloyees Covered
As of the June 30, 2020 measurement date, the following current and covered by the benefit terms under the Plans:
former employees were
Active employees
Inactive employees or beneficiaries currently receiving benefits Total
Miscellaneous Safety
46 71
117
23 24
47 Miscellaneous
Prior to
January 1, On or after
2013 January 1, 2013
2.0°/o © 55 2°/s © 62
5 years of
5 years service service
monthly for life monthly for life
59 59
6.gl°/0 6.25°/o
10.48°k 6.95°/s
Safety
Prior to
January 1,
2013
2% © 50
5 years service
monthly for life
8.940/0
18.15 %
12,00 %13.03 0/
61 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued
Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate, The total plan contributions are determined through the CaIPERS’ annual actuarial valuation process.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance anyunfunded accrued liability. The City is required to contribute the difference between theactuarially determined rate and the contribution rate of employees. Employer contributionrates may change if plan contracts are amended. Payments made by the City to satisfycontribution requirements that are identified by the pension plan terms as plan membercontribution requirements are classified as plan member contributions.
Actuarial Methods and Assumptions used to determine Total Pension Liability For the measurement period ending June 30, 2020 (the measurement date), the total pension liability was determined using the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68
Actuarial Assumptions
Discount Rate
Inflation 2.50%Salary Increases Varies by Entry Age and Service Mortality Rate Table* Derived using CaIPERS’ Membership Data for all funds
The lessor of contract COLA or 2.S°/o
Post Retirement Benefit until Purchasing Power Protection Increase Allowance Floor on Purchasing Power
applies, 2.50°/s thereafter
*
-The mortality table was used was developed based on CaIPERS’ specific data.
The probabilities of mortality are based on the 2017 CaIPERS Experience Study for the periQd from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 9O°/o of Scale MP-2016 published by the Society of Actuaries. For more detailson this table, please refer to the CaIPERS Experience Study and Review ofActuarial Assumptions report from December 2017 that can be found on the CaIPERS website.
62 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continuedi
Discount Rate
The discount rate used to measure the total pension liability was 7.lS/c. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at the statutorily required rates, actuarially determined. Based onthose assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long term expected rate of return on plan on investment was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CaIPERS took into account both shortterm and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, except compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years)using a building-block approach. Using the expected nominal returns for both short-term andlong-term, the present value of benefits was calculated for each fund.
The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using bothshort-term and long-term returns. The expected rate of return was then set equal to thesingle equivalent rate calculated above and adjusted to account for assumed administrativeexpenses.
The expected real rate of return by asset class:
Assumed Asset Real Return Real Return
Asset Classr Allocation Years 1 — 102 Years n+
Global Equity 50.0°/s 4.8O°/o S.98°/o
Global Fixed Income 28.0 1.00 2.62Inflation Sensitive 0.0 0.77 1.81 Private Equity 8.0 6.30 7.23Real Estate 13.0 3.75 4.93Liquidity 1.0 0.00 (0.92) ‘In the System’s CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments, Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
2An expected inflation of 2.D/n used for this period3An expected inflation of 2.92°/n used for this period 63 CITY OF AVALON
(6) Pension Plan (Continued’)
Notes to the Financial Statements
(Continued)
Allocation of Net Pension Liability and Pension Expense to Individual Employers The following table shows the plan’s proportionate share measurement period:
of the net pension liability over the
Miscellaneous Plan:
Balance at: 6/30/19 (VD)Balance at: 6/30/20 (MD)
Net Changes during 19-20
Safety Plan:
Balance at: 6/30/19 (VD)Balance at: 6/30/20 (MD)
Net Changes during 19-20
Total:
Balance at: 6/30/19 (VD)Balance at: 6/30/20 (MD)
Net Changes during 19-20
Plan Fiduciary
Net Position
(b)
14,506,718
14,484,76617,108,56117,025,687
(82,874)
31,615,27931,510,453
Net Pension
Liability
(c) = (a) - (b)
6,061,7746,465,638
403,864
The City’s proportionate share
and 2020 was as follows:
of the net pension liability for each plan as of June 30, 2019 Proportion -June 30, 2019Proportion -June 30, 2020
Change - Increase (Decrease)
Safety
0.097 0/o0.097 °k
Total Pension
Liability
4,457,6094,725,154
(21,952) 267,545
(a)
$ 18,964,327
19,209,920
245,593
23,170,33523,491,325
320,990
42,134,66242,701,245
S 566,583
10,519,38311,190,792
(104,826) 671,409
Miscellaneous
0.1110/00 112°/s0.001°/s 0.000%
64 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the Plan as of the Measurement Date, calculated using the discount rate of 7.15 percent, as well as what the net pension liabilitywould be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:
Discount Rate Current Discount Discount Rate
-1°/a (6.15%) Rate (7.15°/a) +l°/a (8.15°/a)
Miscellaneous Plan’s Net
Pension Liability $ 7,281,526 4,725,154 2,612,904
Safety Plan’s Net Pension
Liability 9,655,851 6,465,638 3,847,773
Total $ 16,937,377 11,190,792 6,460,677
Recognition of Gains and LossesUnder GASS 68, gains and losses related to changes in total pension liability and fiduciary netposition are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Difference between projected and
actual earnings 5 year straight-line amortizationAll other amounts Straight-line amortization over the average expected remaining service
lifetime (EARSL) of all members that are
provided with benefits (active, inactive,
and retired) as of the beginning of the
measurement period.
Pension Exoense and Deferred Outflows and Deferred Inflows of Resources Related toPensions For the year ended june 30, 2021, the City recognized pension expense of $562,504 for theMiscellaneous Plan and $532,865 for the Safety Plan. As of June 30, 2021, the City reported other amounts for the Plan as deferred outflow and deferred inflow of resources related to pensions as follows:
65 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued)
Deferred Deferred
Outflows Inflows
of Resources of Resources
Miscellaneous Plan:
Pension Contributions $ 204,434 -Difference between expected and actual experience 243,501 -Change in proportion and differences between employer contributions andproprotionate share of contributions - (504,728) Changes of assumptions (33,702)
Net Difference between Projected and
Actual Earnings on Pension PlanInvestments 140,368 -Adjustment due to Differences in Proportions 19,721 (30,906)
Total Miscellaneous Plan 608,024 (569,336)
Safety Plan:
Pension Contributions 324,044 -Difference between expected and actual experience 501,378 -Change in proportion and differences between employer contributions andproprotionate share of contribution - (656,166) Changes of assumptions - (21,537)
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 140,524 -
Adjustment due to Differences in
Proportions
- (45,352)
Total Safety Plan 965,946 (723,055)
Total:
Pension Contributions 528,478 -Difference between expected and actual experience 744,879 -Change in proportion and differences between employer contributions andproprotionate share of contribution - (1,160,894) Changes of assumptions - (55,239)
Net Difference between Projected and
Actual Earnings on Pension Plan
Investments 280,892 -
Adjustment due to Differences in
Proportions 19,721 (76,258)
Total City $ 1,573,970 (1,292,391)
66 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued’)
Employer contributions subsequent to the measurement date reported as deferred outflows of resources in the amount of $528,478 will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2022.
Other amounts reported as deferred outflows and deferred inflows of resources in the previouschart, including the employer-specific item, will be recognized in future pension expense as follows:
Fiscal Deferred
Year Outflows/(Inflows)
Ending June 30, of Resources
Miscellaneous Plan:
2022 $ (218,944)2023 (40,744)2024 26,6182025 67,3242026 - Safety Plan:
2022 (202,525)2023 (2,749)2024 53,7122025 70,4092026 -
Total:
2022 (421,469)
2023 (43,493)2024 80,3302025 137,7332026 -
(7) Other Post-Employment Benefits (OPEB)
Plan Description
The City provides medical and dental benefits for retired employees and their spouses through a single employer plan. The City contributes to the CaIPERS Health Plan single-employerdefined benefit healthcare plan. The benefits are available to employees who retire from theCity and commence pension benefits under PERS (on or after age 50) with at least 5 years of service
Employees retiring with at least 20 years of service receive a City contribution for the full cost of coverage for medical and dental coverage. As of the June 30, 2020 measurement date, 25 retired employees were eligible to receive medical and dental benefits. The Plan does notissue a publicly available financial report. 67 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(7) Other Post-EmDloyment Benefits (OPEB (Continued’)
Employees Covered
As of the June 30, 2020 measurement date, the following current and former employeeswere covered by the benefit terms under the Plan:
Active employees 64
Inactive employees or beneficiaries currently receiving benefits 25 Total 89
Contributions
The City pays the cost of the post-employment healthcare and dental benefits for retirees and their spouses during the lire of the retiree. The surviving spouse of an eligible retiree whoelected spouse coverage under CaIPERS is eligible for the contribution upon the death of the retiree. Substantially all of the government’s employees may become eligible for thesebenefits if they reach normal retirement age while working for the City.
The contribution requirements of plan members and the City are established and may be amended by the City, City Council, and/or the employee associations. Currently, contributionsare not required from plan members. The City has established a trust for the purpose of holding funds that have been irrevocably contributed by the City toward funding of its OPEB obligation. This trust is being administered by California Employer’s Retiree Benefit Trust (CERBT). Annually, City Council determines the amount that the City will fund to this trust.For the fiscal year ended June 30, 2021, the City’s cash contributions were $0 in payments to the trust, In addition, the City contributed $237,527 of its funds in the form of retiree payments and implied subsidy paid by the District for retirees for total payments of $237,527.
The City’s total OPEB liability was measured as of June 30, 2020 by an actuarial valuation based on the following actuarial methods and assumptions:
Discount Rate: 2.4Y/c per annum, This discount rate is the average, rounded to 5 basispoints, of the range of 3-20 year municipal bond rate indices: Fidelity 20-year Municipal GO AA index.Inflation Rate: 2.50°/a per year
Aggregate Payroll Increases: 2,73°/o per year. This assumption is used to amortize the unfunded actuarial accrued liability and to determine the Entry Age Normal actuarialliabilities.Mortality Rate: Based on assumptions for Public Agency Miscellaneous, Police and Firemembers published in the December 2017 CaIPERS Experience Study. 68 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(7) Other Post-EmDloyment Benefits (OPEB (Continued
Turnover Rate: Assumption used to project terminations (voluntary and involuntary) prior to meeting minimum retirement eligibility for retiree health coverage. The rates representthe probability of termination in the next 12 months, The termination rates are based onthose used in the most recent CaIPERS pension valuation.
Retirement Rate: Annual retirement rates are based on those used in the most recent CaIPERS pension valuation.
Discount Rate
The long-term expected rate of return on OPEB plan investments was 6.So0/, which was CERBT’s mean estimate of long-term investment returns on its OPEB portfolio. These rangesare combined to produce the long-term expected rate of return by weighting the expectedfuture real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class includedin the OPEB plan’s target allocation as of June 30, 2020 are summarized in the following table.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Long-Term
expected
Target real rate of
Asset Class Allocation return
Equity 59,00Wo 4.76°/oFixed income 25.00% 2.Ol0/a
TIPS 5,00°/s 1.20°/o
Commodities 3.00% 2.30°/o
REITs 8,00°/o 4.53°/a
Total 100%
69 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(7) Other Post-Employment Benefits (OPEB’) (Continued’) Changes in the Total OPEB Liability
The changes in the Plan’s total OPEB liability is as follows:
Balance at June 30, 2020
Service cost
InterestDifferences between expected and actual
experience
Changes of assumptions
Contributions - employer
Net investment incomeBenefit payments
Administrative expense
Net ChangesBalance at June 30, 2021(Measurement Date June 30, 2020) Net OPEB
Liability Liablity/(Asset)
$ 8,556362 250,807 8,305,555
410,991 - 410,991
283,126 - 283,126
(16,029) - (16,029)
1,070,485 - 1070,485
- 183,857 (183,857)
- 8,859 (8,859)
(183,857) (183,857) - - (123) 123
1,564,716 8,736 1,555,980
5 10,121,078 259,543 9,861,535
Sensitivity of the OPEB Liability to Changes in the Discount Rate The following presents the City’s OPEB liability if it were Calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, formeasurement period ended June 30, 2020:
Current
Discount Rate
(2.49°/o)
DPEB Liability 11,726,759 9,861,535 8,381,479
Sensitivity of the OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the OPEB liability of the City if it were calculated using health care costtrend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
OPEB Liability
l°/n Decrease
(5 00°/oH MO/S. 50°/oPPO
decreasing to
4.00%HMO/4.00°/0PPO)
Current Healthcare Cost
Trend Rates
(6.00%h MO/6.50%PPO)
decreasing to
S. 00°/oH MO/S. 00°/0PPO)
9,861,535
1°/s Increase
(7.00 % H MO/ 7 50/0P0
decreasing to
6.00°/oh MO/60o%PPO)
12,052,870
Total OPEB Plan Fiduciary
Net Position
1°/s Decrease
(1 49°/n)
l% Increase
(3.49 O/o)
$ 8,197,250
70 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(7) Other Post-Employment Benefits (OPEB1 (Continued)
Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability are recognized in OPEB expense systematically over time.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resourcesrelated to OPEB and are to be recognized in future OPEB expense. The initial amortizationperiod for deferred inflows and deferred outflows is three years.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense June 30, 2021, the City reported deferred outflows and inflows of resources from the following sources:
Deferred
Outflows Deferred Inflows
OPEB contributions subsequent to measurement dateChanges in assumptions Differences between expected and actual experienceNet difference between projected and actual earnings on investments
Total
of Resources of Resources
$ 237,527 -
1,261,715 406,114
- 67,988
5,548 -
$ 1,504,790 474,102
The $237,527 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPES liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as expense as follows:
Deferred
Fiscal Year
Ended June 30:
20222023
2024
20252026
Thereafter
Outfl ows/(Inflows)
of Resources
$ 82,293
82,293
82,295
167,603
200,720
177,957
of $525,587. At
related to OPEB
71 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(8) Risk Management and Self-Insurance
The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, error and omissions, injuries to employees and natural disaster. The City retains the risk of loss for general liability, property damage and automobile related claims of up to $25,000 per occurrence. All risk management activities are accounted for in an internal service fund.Changes in the aggregate estimated claims payable resulted from the following:
Liability as of June 30, 2019
Claims incurred and changes in estimatesClaim payments
Liability as of June 30, 2020
Claims incurred and changes in estimates
Claim payments
Liability as of June 30, 2021
Claims Liability
Govt Funds Enterprise Funds
$ 189,109 75,772
180,716 279,784
(249,02) (300,584)
120,797 54,972
21,412 -
- (23,040)
$ 142,209 31,932
The City is a member of the Public Agency Risk Sharing Authority of California (PARSAC). The PARSAC is made up of 37 California municipalities and provides joint protection wherein cities pool their losses and claims, jointly purchase excess insurance, and share administrative andrelated costs. Under the pooling arrangement, the City is to contribute a premium based upon its assessed risk factor for general liability and yearly payroll expenses for workers’ compensation and employer’s liability.
The annual deposits made with the PARSAC include estimates of amounts to be paid for reported claims and incurred but not yet reported claims based upon past experience andmodified for current trends and information. Such claims are paid by the PARSAC and, in effect charged back to the City via future insurance deposits, no accruals have been made for outstanding claims.Settlement claims have not exceeded any of the coverage amounts in any of the last three fiscal years, and there were no reductions in the City’s insurance coverage during the year ended June 30, 2021.
The City carries commercial insurance on all significant property and equipment owned by the City, as well as fidelity bonds for all applicable public officials and employees. 72 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(9) Individual Fund Disclosures
The following funds reported a deficit fund balance:
Major Funds:
Local Transportation 334,058 (a)
Solidwaste 370,967 (b)
Nonmajor Special Revenue Funds:
Traffic Control and Safety 2,371 (a)
Community Development Block Grant 23,820 (a)
(a) The Local Transportation Fund, Traffic Control and Safety Fund and Community Development and Block Grant Fund deficits are expected to be eliminated through future grant receipts.
(b) The City expects to eliminate the Solidwaste fund deficit through increased user fees. (10) Commitments and Contingencies
(a) Lawsuits
Avalon K-12 School/California Department of Toxic Substance Control Matter In March 2012, the California Environmental Protection Agency’s Department of Toxic Substances Control (DTSC) issued an Imminent and Substantial Endangerment Determination and Remedial Action Order (Order) to the City, the Santa Catalina Island Company, and the Long Beach Unified School District regarding three parcels of propertytotaling approximately 14 acres, which include the Avalon K-12 School and the adjacent City warehouse property. The Order states that there may be an imminent and/or substantial endangerment to the public health or welfare or to the environment becauseof a release and/or the threatened release of hazardous substances at the site and requires the named parties to undertake certain response actions to address the contamination. Each of the parties is jointly and severally liable to DTSC for the required response actions.
Since issuance of the Order, the City and the other two parties have entered into acooperating agreement, whereby they have jointly retained a consultant and are sharing the cost to prepare and implement the Remedial Investigation/Feasibility Study (RI/Fl).
The Remedial Investigation, namely the soil sampling and excavation activities on-site was performed in September 2013, the report on which was approved by the DTSC on February 12, 2014. Feedback from the DTSC called for a Human Health Risk Assessment(HHRA), preparation of a Feasibility Study workplan, and further investigations.Following completion and approvai of the Feasibility Study, the parties will confer with 73 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(10) Commitments and Contingencies (Continued
the DTSC on the appropriate actions to address any contamination identified in the investigation, which will be implemented in the Remedial Action Plan, The nature and costs of any required remedial actions cannot be estimated at this time. Once the costsare known, the parties will attempt to negotiate a cost sharing agreement for that portion of work, to avoid litigation. The City has tendered the defense and indemnity of this matter to insurance carriers that issued insurance to the City in the past. One ofthe carriers has accepted tender, with reservation of rights, and, as such, a significant portion of the costs have been covered by insurance.EPA/State/Regional Water Board Investigations The United States Environmental Protection Agency, the State Water Resources Control Board and the Los Angeles Regional Water Quality Control Board have conducted areview of the City’s sanitary sewer system operations.
The City owns a sewage treatment plant and related conveyance system, and the City has a contract with Environ Strategies to operate and maintain the system. Theprobability of such litigation or amount or monetary exposure is unknown at this time.
A Cease and Desist Order was issued March 5, 2012 by the Los Angeles Regional Water Quality Board that requires the City to initiate many programs and updates to its sewersystem. No fines were proposed and the City does not anticipate any fines being levied.In October 2014 and 2015, the City filed reports verifying its compliance with permit requirements. As of June 30, 2019, the City has estimated potential costs of remediation to be $25,000, in addition to the routine maintenance or improvement costs typically incurred by the City each fiscal year. This amount is included as a liability in the Sewer Enterprise Fund.
There are various other claims and legal actions pending against the City. In the opinion of the City Attorney and City management, other than the claims noted above, liabilitiesarising from these claims and legal actions, if any, will not have an adverse materialeffect on the financial position of the City. (b) Federal and State Grants
The City has received State and Federal funds for specific purposes that are subject to review by the grantor agencies. Although, such audits could generate expenditure disallowances under the terms of the grants, it is believed that required reimbursements, if any, will not be material.
(11) Landfill Closure Liability
State and federal laws and regulations require the City to pay for costs related of the Pebbly Beach Landfill (PBL) to protect against contaminants leaking from the PBL into the local groundwater and to perform certain maintenance and monitoring functions at the site forthirty years after closure. Although closure and postclosure care costs will be paid only nearor after the date that the landfill stops accepting waste, the City reports a portion of these 74 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(11) Landfill Closure Liability (Continued
closure and postclosure care costs as an operating expense in each period based on landfillcapacity used as of each balance sheet date. The $4.6 million reported as landfill closure and postclosure care liability as of June 30, 2021, represents the cumulative amount reportedbased on the use of 90 percent of the estimated capacity of the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of $643 thousand as the remaining capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2016. The City expects to close the landfill in the year 2025.Actual cost may be higher due to inflation, changes in technology, or changes in regulations The City is required by state and Federal laws and regulations to make annual contributions to a trust to finance closure and postclosure care. The City is in compliance with these requirements, and, at June 30, 2021 investments of $2.6 million ($2.6 million fair value) areheld for these purposes. These are reported as cash and investments on the Statement of Net Position. The City expects that future inflation costs will be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional postclosure care requirements are determined (due to changes in technology or applicablelaws or regulations, for example), these costs may need to be covered by charges to futurelandfill users or from future tax revenue. (12) Operating Leases
On September 16, 2003, the City entered into a lease and operating agreement with theAvalon Medical Development Corporation (AMDC) whereby AMDC will lease the Avalon Municipal Hospital facility and perform all maintenance and operation of the facility. The agreement term calls for automatic extensions through September 15, 2033 with annual rental payments of $1 due from AMDC.
On May 2, 1946, the City entered into a lease agreement with the Tuna Club whereby the Tuna Club leases certain real property from the City. The original lease has been extended eight times through May 31, 2041. The agreement term calls for monthly payments of $3,400 to the City.
On July 1, 2016, the City entered into an easement agreement with the Santa Catalina IslandCompany (Island Company) whereby the Island Company grants an easement to City over the Casino Fuel Dock Area through June 30, 2021. The agreement term calls for monthly payments of $11,250 to the Island Company.
75 (This page intentionally left blank)
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF AVALON
Schedule of the Plan’s Proportionate Share of the Net Pension Liability Year ended June 30, 2021
(With comparative information for the last 10 years)*
Miscellaneous Plan
Measurement Date 6/30/2014 6/30/2015 6/30/2016
Plan’s Proportion of the Net Pension Liability (Asset) 0.052% O.ll9°/ 0.113%Plan’s Proportionate Share of the Net Pension Liability (Asset) $3,244,942 3,251,550 3,925,210 Plan’s Covered-Employee Payrol $2,244,540 2,163,234 2,493,789Plan’s Proportionate Share of the Net Pension Liability (Asset) as apercentage of its Covered Payroll 144.57% 150.31% 157.40% Plan’s Proportion of the Fiduciary Net Position as a Percentage of thePlan’s Total Pension Liability 75.76% 76.83% 72.820/o Notes to Schedule:
Summary of Changes of Benefits or Assumptions:
Benefit Changes: There were no changes to beneñt terms that applied to all members of the Public Agency Pool.However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a Golden Handshakes).
Employers that have done so may need to report this information as a separate liability in their financial statements as CaIPERS considers such amounts to be separate financed employer-specific liabilities.Changes in Assumptions: There were none in 201g or 2020. In 2018, demographic assumptions and inflation rate werechanged in accordance to CaIPERS Experience Study and Review of Actuarial Assumptions December 2017. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. 76 Miscellaneous Ptan
6/30/2017 6/30/2018 6/30/2019 6/30/2020
0.112% O.llS°/o 0.111% 0.112%
4427,923 4,200,936 4,457,609 4,725,154
2,773,397 3,007,600 3,248,87] 3,085,070
159.66% 139.68% 137,20% 153.16%
72.860/o 76.l90/o 78.l9°/a 76.19°/o
77 CITY OF AVALON
Schedule of Plan Contributions
Year ended June 30, 2021
(With comparative information for the last 10 years)*
Miscellaneous
Fiscal Year 6/30/2015 6/30/2016 6/30/2017
Actuarially Determined Contribution $ 360,971 171,940 467,748 Contributions in relation to the Actuarially
Determined Contribution (380,971) (171,940) (467,748)
Contribution Deficiency (Excess)
Covered-Employee Payroll $ 2,163,234 2,493,789 2,773,397Contributions as a Percentage of CoveredEmployee Payroll 17.61°/s 6.89% 16.87°/uNotes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions forfiscal year 2021 were from the June 30, 2018 funding valuation report.Actuarial Cost Method entry Age Normal Amortization Method/Period For details, see June 30, 2018, Funding Valuation ReportAsset Valuation Method Actuarial Value of Assets. For details, see June 30, 2014, Funding Valuation Report
Inflation 2.S°/uSalary Increases Varies by Entry Age and Service Payroll Growth 2.75°/u
Investment Rate of Return 7.00°/s Net of Pension Plan Investment and Administrative Expenses; includes inflation
Retirement Age The probabilities of Retirement are based on the 2014 Ca’PERS Experience Study for the period from 1997 to 2011.
Mortality Derived using CaIPERS’ Membership Data for all funcs.
The fiscal year ended June 30, 2015 was the first year of implementation. Information for the last 10 years is not available.
The CaIPERS Board of Administration has adopted an new amortization policy effective with the June 30, 2019 actuarial valuation. The new policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed using a level dollar amount. In addition, the new policy removes the 5-year ramp-up and ramp-down on UALbases attributable to assumption changes and nonin vestment gains/losses. The new policyremoves the 5-year ramp-down on investment gains/losses. These changes will apply only to new UAL bases established on or after June 30, 2019.
78 Miscellaneous
6/30/2018 6/30/2019 6/30/2020 6/30/2021
308,960 372,356 265,096 337,003
(308,960) (372,356) (265,096) (337,003)
3,007,600 3,248,877 3,085,070 2,225,428
10.27% 11.46°/D 8.59% 1514%
79 CITY OF AVALON
Schedule of the Plan’s Proportionate Share of the Net Pension Liability Year ended June 30, 2021
(With comparative information for the last 10 years)*
Safety Plan
Measurement Date 6/30/2014 6/30/2015 6/30/2016Plan’s Proportion of the Net Pension Liability (Asset) 0.069% 0.131% ü.i02°in Plan’s Proportionate Share of the Net Pension Liability (Asset) $ 4,315,290 4,453,372 5,295,648Plan’s Covered-Employee Payroll $ 2,013,283 2,060,685 2,049,532Plan’s Proportionate Share of the Net Pension Liability (Asset) as a percentage of its Covered Payroll 214,34°/o 216.11°/n 258.38% Plan’s Proportion of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 73.73% 73.61% 69.60% Notes to Schedule:Benefit changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool.However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a,k,a. Golden Handshake). Employers that have done so may need to report this information as a separate liability in their financial statement as CaIPERS considers such amounts to be spearately financed employer-specific liabilities.
These employers should consult with their auditors.
Changes in assumptions: There were none in 2019 or 2020. In 2018, demographic assumptions and inflation rate were changed in accordance to the CaIPERS Experience Study and Review of Actuarial AssumptionsDecember 2017. In 2017 the discount rate was changed from 7.65 percent to 7.15 percent “The fiscal year ended June 30, 2015 was the first year of implementation. Information for the last .10 years is not available.
80 Safety Plan
6/30/2017 6/30/2018 6/30/2019 6/30/2020
0.099°/o 0.098% 0.097% O.O97%
5,914,603 5,774,582 6,061,774 6,465,6382,188,257 2,113,600 2,351,828 2,321,155 270.29% 273.21% 257.75°/o 278.55%
70,76°Io 73.780°/n 73.780°/n 73.780%
81 CITY OF AVALON
Schedule of Plan Contributions
Year ended June 30, 2021
(With comparative information for the last 10 years)*
Safety
Fiscal Year 6/30/2015 6/30/2016 6/30/2017
Actuarially Determined Contribution $ 542,007 284,406 710,437Contnbutions in relation to the Actuarially Determined Contribution (542,007) (284,406) (710,437)
Contribution Deficiency (Excess) - Covered-Employee Payroll $ 2,060,685 2,049,532 2,188,257Contributions as a Percentage of CoveredEmployee Payroll 2630% 1388°/ 3247%Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2021 were from the June 30, 2018 funding valuation report.Actuarial Cost Method Entry Age Normal Amorti2ation Method/Period For details, see June 30, 2018, Funding Valuation ReportAsset Valuation Method Actuarial Value of Assets. For details, see June 30, 2014, Funding Valuation Report
Inflation 2.S°/a
Salary Increases Varies by Entry Age and Service
Payroll Growth
Investment Rate of Return 700°/a Net of Pension Plan Investment and Administrative Expenses; includes inflation
Retirement Age The probabilities of Retirement are based on the 2014 CaIPERS Experience Study for the period from 1997 to 2011.
Mortality Derived using CaIPERS’ Membership Data for all funos. *The fiscal year ended June 30, 2015 was the first year of implementation.
In formation for the last 10 years is not available.
82 Safety
6/30/2018 6/30/2019 6/30/2020 6/30/2021
565,204 585,335 361,529 644,158
(565,204) (585,335) (361 (644,158)
2,113,600 2,351,828 2,321,155 1,860,947
26.74°/o 24.89°/o 1558°/o 34.61%
83 CITY OF AVALON
Schedule of Changes in Total OPEB Liability and Related Ratios Year ended June 30, 2021
(With comparative information for the last 10 years)*
Measurement date June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 Total OPEB liability
Service costInterest on the total OPEB liabilityActual and expected experience differenceChanges in assumptionsChanges in benefit terms -Benefit payments Net change in total OPEB liability
Total OPEB liability -beginning Total OPEB liability ending -
- 418,056 183,857
-
- 807 8,859
-
- (168,056) (183,857)
- -
- (1J
250,807 8,736
- 250,807
250,807 259,543
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered employee payroll $ 5,154,285 $ 5,600,705 $ 5,406,225 $ 4,446,081OPEB liability as a percentage of covered-employee payroll
Notes to Schedule:
Changes in assumotions. The discount rate as of the June 30, 2016 measurement date was 2.92%. The discount rate as of the June 30, 2017 measurement date was 3.56°/o, based on 20-year municipal bond rates as of each measurement date. The discount rate for the measurement period ended June 30, 2018was 362%. The discount rate as of the June 30, 2020 measurement date was 2.49w/a Historical information is required only for measurement periods for which CASS 75 is applicable.Future years’ information will be displayed up to 10 years as informat’on becomes available.* - Fiscal year 2017 was the first year of implementation, therefore only Pour years are shown. 321,604 333,322 410,991270,662 287,947 283,126
- (75,252) (16,029)
(73,428) 473,354 1,070,485
$ 362,098
234,548
(811,400)(158,558)(373,312)
1,749,640
$ 7,376,328
$
(190,119)
328,719
7,376,328
7,705,047
(168,056)
851,315
7,705,0478,556,362
(183,857)
1,564,716
8,556,362
10,121,078
Plan Fiduciary Net Position
Contrbution - employerNet investment incomeBenefit payments Administrative expense
Net change in plan fiduciary net position - -Plan fiduciary net position - beginning - - Plan fiduciary net position - ending (b) - - Net OPEB liability - ending (a)-(b) $ 7,376,328 7,705,047
0.00%
8305,555
0.00% 2.93°,5
9,861,535
2.56%
l43.ll°/o 137.57% ISS.27°/o
84 CITY OF AVALON
Schedule of OPEB Contributions
Year ended June 30, 2021
LAST TEN FISCAL YEARS*
Fiscal Year Ended June 30
Actuarially Determined Contribution (ADC)Contributions in relation to the ADC Contribution deficiency (excess)
Covered employee payroll
2020 2021
$ 208,650 $ 237,527
(208,650) (237,527)
$ 5,154,285 $ 5,600,705 $ 5,406,225 $ 4,446,081
Contributions as a percentage of
covered-employee payroll 0.00%
Notes to Schedule
Actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2021 were from the June 30, 2019 actuarial valuation.Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal
Asset Valuation Method Market valueInflationSalary IncreasesInvestment Rate of Return Healthcare cost-trend rates
Historical information is required only for measurement periods for which GASB 75 is applicable.
Future years’ information will be displayed up to 10 years as information becomes available. 2018 2019
$ $
-
0,000/o 3.86% 5.34%
2.50%2.75°/o per annum, in aggregate6.SO0/o per annum net of OPEB plan investmentSlOb in 2019 and all later yearsDental and vision premiums are assumed to increase 4°bo per yearMedicare Part B premiums are assumed to increase 30bo after 2018 85 CITY OF AVALON
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget to Actual Year ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 6,471,322 6,471,322 10,050,988 3,579,666
Licenses, permits and fees 422,550 422,550 505,968 83,418 Fines, forfeitures and penalties 3,500 3,500 11,299 7,799Investment income 25,000 25,000 400 (24,600)Intergovernmental revenue 1,168,216 1,393,216 225,729 (1,167,487)Charges for services 313,427 313,427 444,787 131,360Dther revenue 1,134,300 1,134,300 129,199 (1,005,101) Total revenues 9,538,315 9,763,315 11,368,370 1,605,055 Experdtures:
Current:
Public safety 1,785,425 1,785,425 1,642,918 142507Fire and ambulance 2,951,343 2,946,343 2,746,346 199,997Planning, building and engineering 418,647 608,647 627,562 (18,915) Community services 696,381 696,381 625,769 70,612
Public works 980,206 980,206 889,307 90,899
General government:
Services and charges 1,172,062 1,172,062 1,569,279 (397,217)Contract services 458,180 458,180 652,240 (194,060)Special departmental 30,000 30,000 21,430 8,570 Capital expenditures 2,414,110 2,414,110 143,776 2,270,334Debt service:
Principal 120,000 120,000 123,299 (3,299)Interest 17,010 17,010 13,713 3,297 Total expenditures 11,043,364 11,228,364 9,055,639 2,172,725 Excess of revenues over
(under) expenditures (1,505,049) (1,465,049) 2,312,731 3,777,780 Other financing sources (Uses):
Transfers in 60,000 60,000 77,838 17,838Transfers out (389,203) (389,203J (156,SQQ) 232,703 Total other financing sources (uses) (329,203) (329,203) (78,662) 250,541 Net change In fund balance (1,834,252) (1,794,252) 2,234,069 4,028,321 Fund balance, beginning of year 4,553,244 4553,244 4,553,244 4,553,244Fund balance, end of year $ 2,718,992 2,758,992 6,787,313 8,581,565 86 CITY OF AVALON
Local Transportation Fund - Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 1,499,301 1,499,301 1,074,212 (425,089) Total revenues 1,499,301 1,499,301 1,074,212 (425,089)
Expenditures:
Current:
General government:
Contract services
Total expenditures
Net change in fund balance 1,499,301 1,499,301 919,212 (270,089) Fund balance, beginning of year - - - -Fund balance, end of year $ 1,499,301 1,499,301 919,212 (270,089) 87 CITY OF AVALON
Avalon Housing Authority Fund - Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2021
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 80,100 80,100 3,968 (76,132)Other revenue 300,300 300,300 300 (300,000) Total revenues 380,400 380,400 4,268 (376,132)
Expenditures:
Current:
Planning, building and engineering 9,470 9,470 9,164 306 Community Services 49,139 49,139 46,454 2,685General government:
Contract services 55,200 55,200 32,067 23,133
Capital Expenditures 252,571 252,571 - 252,571
Total expenditures 366,380 366,380 87,685 278,695
Excess of revenues over
(under) expenditures 14,020 14,020 (83,417) (97,437)
Net change in fund balance 14,020 14,020 (83,417) (97,437) Fund balance, beginning of year 5,856,987 5,856,987 5,856,987 -Fund balance, end of year $ 5,871,007 5,871,007 5,773,570 (97,437) 88 CITY OF AVALON
Notes to Required Supplementary Information
Year Ended June 30, 2021
(1) Pension Information
Change in Benefit Terms: The figures in the preceding schedules do not include any liability impact that may have resulted from plan changes which occurred after June30, 2014 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden handshakes).
Employers that have done so may need to report this information as a separate liabilityin their financial statement as CaIPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors.Changes in Assumptions: GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50 percent used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.15 percent used for the June 30, 2018 measurementdate is without reduction of pension plan administrative expense. (2) Budaetarv Information
The City follows the procedures outlined below in establishing the budgetary data reflected in the basic financial statements:
• On or before June 30 of the fiscal year, the City is required to adopt an annual operating budget for the ensuing fiscal year for the General and Special Revenue Funds. A public hearing is held to afford taxpayers an opportunity to be heard on the proposed budget.
• The operating budgets are reported on the modified accrual basis of accounting and are adopted on a basis consistent with accounting principlesgenerally accepted in the United States of America. The operating budget includes proposed expenditures and appropriations. Expenditures may notlegally exceed appropriations at the fund level. Any unexpended budgeted appropriations lapse at year-end.
• Once the budget is approved, the City Council must authorize any transfer amounts between individual funds and any revisions that alter the totalappropriations of a fund. Management may amend the budget for intrafund line-item transfers.
89 (This page intentionally left blank)
OTHER INFORMATION
97 (This page intentionally left blank)
CITY OF AVALON
Nonmajor Governmental Fund
Special Revenue Funds
The following Special Revenue Funds have been classified as nonmajor governmental funds in the accompanying schedules:Street — This fund receives and disburses the City’s share of the State Gasoline Taxes inaccordance with the provisions of the State of California Streets and Highway Code.
Traffic Control and Safety — This fund is used to record traffic fines resulting from violations of the California Vehicle Code. The lines are deposited in this fund and are restricted by law for expenditures on traffic signs, signals, and other traffic control devices and the maintenance or construction of streets, bridges, and culverts.
Community Development Block Grant — This fund receives and disburses Community Development Block Grant monies from the United States Department of Housing and Urban Development. These funds are used for the redevelopment or initial construction of City streets and designated housing projects.
Development Impact Fees — This fund is used to account for monies received from developers for charges designed to mitigate the impact of new developments on public services.
Mclean / Hall / Putnam Trust — This fund is used to account for contributions received whichhave been restricted in use to fund the purchase of fire equipment. 90 CITY OF AVALON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Assets:
Special Revenue Funds
Traffic Control
Street and Safety
Cash and investments
Receivables, net:
Accounts
Due from other governments
Total assets
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds
Unearned revenue
Total liabilities
Deferred Inflows of Resources:
Unavailable revenue
Fund balances:
Restricted:
Capital projectsStreet projects
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
$ 62,886
29 15,805
$ 78,720
$ 5,450
5,450
73,27073270
$ 78,720
1,347
9,930
11,277
10,607
3,041
13,648
(2,37fl(2,37 1)
11,277
91 Special Revenue Funds
Community
Development
Block Grant
19,57919,579
5,670
18,150
23,820
19,579
(23,820)(23,820)
19,579
Development
Impact Fees
37,406
Mclean / Hall /
Putnam Trust
40,980
Total
142,619
9,971
35,384
187,974
21,727
3,041
18,150
42,918
19,579
78,398
73,270
(26,191)
125,477187,974
12 37,406 40,99237,406 40,99237,406 40,99237,406 40,992 92 CITY OF AVALON
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
Year ended June 30, 2021
Special Revenue Funds
Traffic Control and
Street Safety
Revenues:
Taxes $ 159,058
Fines, forfeitures and penalties - 76,206
Investment income 608 -Other revenue - -
Total revenues 169,666 76,206
Expenditures:
Current:
Community services -
Public works 61,500 132,605
General government:
Contract services - 4,283
Total expenditures 61,500 136,888
Excess of revenues over
(under) expenditures 108,166 (60,682)
Other financing sources (uses):
Transfers in - 45,000Transfers out (72,838) -
Total other financing sources (uses) (72,838) 45,000
Net change in fund balance 35,328 (15,682)
Fund balance (deficit), beginning of year 37,942 13,311Fund balance (deficit), end of year $ 73,270 (2,37D 93 Special Revenue Funds
Community
Development Development Mclean I Hall
Block Grant Impact Fees / Putnam Trust Total
- -
- 169,058
- -
- 76,206
- 120 257 985
17,129 37,286 1,480 55,89517,129 37,406 1,737 302,144
30,206 - - 30,206
-
-
- 194,105
6,561 - - 10,844
36,767 - - 235,155
(19,638) 37,406 1,737 66,989
-
-
- 45,000
- -
- (72,838)
-
- (27,838)
(19,638) 37,406 1,737 39,151
(4,182) - 39,255 86,326
(23,820) 37,406 40,992 125,477
94 CITY OF AVALON
Street Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2021.
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Taxes $ 153,816 169,058 15,242
Investment income 500 608 108
Total revenues 154,316 169,666 15,350
Expenditures:
Current:
Public works 96,000 61,500 34,500
General government:
Services and charges 1,000 - 1,000
Total expenditures 97,000 61,500 35,500
Net change in fund balance 57,316 108,166 50,850
Other financing sources (Uses):
Transfers out - (72,838) 72,838
Total other financing sources (uses) (72,838) 72,838
Extraordinary gain (loss) - - -
Fund balance, beginning of year 37,942 37,942 -Fund balance, end of year $ 95,258 73,270 (21,988) 95 CITY OF AVALON
Traffic Control and Safety Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2021
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Fines, forfeitures, and penalties $ 65,000 76,206 11,206 Total revenues 65,000 76,206 11,206
Expenditures:
Current:
Public works 130,502 132,605 (2,103)
General government:
Contract services 8,600 4,283 4,317
Special departmental 2,000 - 2,000
Total expenditures 141,102 136,888 4,214
Excess of revenues over
(under) expenditures (76,102) (60,682) 15,420
Other financing sources (Uses):
Transfers in 60,498 45,000 (15,498)
Total other financing sources (uses) 60,498 45,000 (15,498) Net change in fund balance (15,604) (15,682) (78)
Fund balance (deficit), beginning of year 13,311 13,311 - Fund balance (deficit), end of year S (2,293) (2,371) (78) 96 CITY OF AVALON
Community Development Block Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2021
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Intergovernmental revenue $ 38,000 - (38,000)Other revenue - 17,129 17,129 Total revenues 38,000 17,129 (20,871)
Expenditures:
Current:
Community services 26,000 30,206 (4,206)
Contract services - 6,561 (6,561)
Capital outlay 38,000 - 38,000
Total expenditures 64,000 36,767 27,233
Excess of revenues over
(under) expenditures (26,000) (19,638) 6,362
Other financing sources (uses):
Transfers in 27,422 - (27,422)
Total other financing sources (uses) 27,422 (27,422)
Net change in fund balance 1,422 (19,638) (21,060)
Fund balance (deficit), beginning of year (4,182) (4,182) -Fund balance (deficit), end of year $ (2,760) (23,820) (21,060) 97 CITY OF AVALON
Development Impact Fees Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2021
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Investment income S - 120 120Other Revenue - 37,286 37,286 Total revenues 37,406 37,406
Expenditures:
Capital outlay 38,000 - 38,000
Total expenditures 38,000 38,000
Excess of revenues over
(under) expenditures (38,999) 37,406 75,406
Net change in fund balance (38,000) 37,406 75,406
Fund balance (deficit), beginning of year - - -Fund balance (deficit), end of year $ (38,000) 37,406 75,406 98 CITY OF AVALON
Mclean/Hall/Putnam Trust Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2021
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Investment income $ - 257 257Other revenue - 1,480 1,480 Total revenues 1,737 1,737
Expenditures:
Current:
Special departmental - -
Total expenditures
Net change in fund balance - 1,737 1,737
Fund balance, beginning of year 39,255 39,255 -Fund balance, end of year $ 39,255 40,992 1,737 99 CITY OF AVALON
Internal Service Funds
General Administration — This fund functions as the overhead fund for the City and all administrative costs are to be allocated to user departments.Insurance — This fund is used to account for the City’s general liability insurance, including claims, legal and other expenses, and the City’s workers’ compensation insurance, including claims, legal and other expenses.
Vehicle Maintenance — This fund is used to account for the maintenance of the vehicular fleetand equipment utilized by the other departments within the City. 100
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CITY OF AVALON
Internal Service Funds
Combining Statement of Net Position
June 30, 2021
General Vehicle
Administration Insurance Maintenance Total
Assets:
Current assets:
Cash and investments $ 108,428 788,546 419,143 1,316,117 Receivables, net:
Interest receivable - 221 126 347
Total current assets 108,428 788,767 419,269 1,316,464
Noncurrent assets:
Capital assets, net - - - -
Total noncurrent assets - - - - Total assets 108,428 788,767 419,269 1,316,464 Deferred outflows of resources:
Deferred outflows - pension related - - 12,324 12,324
Total deferred outflows of resources 12,324 12,324
Liabilities:
Current liabilities:
Accounts payable 64,830 48,863 9,449 123,142Accrued liabilities 30,324 37,943 4,901 73,168 Total current liabilities 95,154 86,806 14,350 196,310
Noncurrent liabilities:
Claims payable - 142,208 - 142,208
Net pension liability - - 87,632 87,632
Total noncurrent liabilities - 142,208 87,632 229,840Total liabilities 95,154 229,014 101,982 426,150 Deferred inflows of resources:
Deferred inflows - pension related - - 10,120 10,120
Total deferred inflows of resources 10,120 10,120
Net position:
Investment in capital assets - - - -Unrestricted 13,274 559,753 319,491 892,518 Total net position 13,274 559,753 319,491 892,518
101
CITY OF AVALON
Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position Year ended June 30, 2021
General Vehicle
Ad ministration Insurance Maintenance Total
Operating revenues:
Charges for services $ 1,917,525 569,446 269,771 2,756,742 Total operating revenues 1,917,525 569,446 269,771 2,756,742 Operating expenses:
Salaries and benefits 1,160,213 - 137,440 1,297,653Contractual services 381,225 151,405 - 532,630Office supplies 59,938 - - 59,938 Utilities and rent 113,948 - 67,680 181,628Repairs and maintenance 22,324 - 28,758 51,082 Operating supplies 24,602 - 8,259 32,861Other services and charges 48,356 416,869 - 465,225Depreciation 3,136 - 93,627 97,363 Total operating expenses 1,814,342 568,274 335,764 2,718,380Operating income (loss) 103,183 1,172 (65,993) 38,362 Nonoperating revenues (expenses):
Interest income - 4,640 2,645 7,285
Total nonoperating revenues (expenses) 4,640 2,645 7,285 Changes in net position 103,183 5,812 (63,348) 45,647
Net position (deficit), beginning of year (62,707) 553,941 691,170 1,182,404Net position (deficit), end of year S 40,476 559,753 627,822 1,228,051 102
CITY OF AVALON
Combining Statement of Cash Flows
Internal Service Funds
Year ended June 30, 2021
General Vehicle
Adm inistratior, Insurance Maintenance Totals
Cash Flows from Operating Activities:
Cash received from interfund services provided $ 1,917,525 569,446 270,873 2,757,844Cash payments to suppliers for goods and services (704,168) (443,083) (112,270) (1,259,521)Cash payments to employees for services (1,156,805) - (147,782) (1,304,587) Net cash provided by operating activities 56,552 126,363 10,821 193,736 Cash Flows from Investing Activities:
Interest in investments 5,127 2,963 8,090
Net increase (decrease) in cash and cash equivalents 56,552 131,490 13,784 201,826 Cash and cash equivalents, beginning of year 51,876 657,056 405,359 1,114,291 Cash and cash equivalents, end of year $ 108,428 788,546 419,143 1,316,117 Reconcihation or Operating Income (Loss) to ret Cash
Provided oy Operating Activities:
Operatng income (loss) $ 103,183 1,172 (65,993) 38,362Other income (expense) 16,846 (16,846) -Adjustments to reconcle operatny income (loss) to net cash provided by operat;ng activities
Depreciation 3,736 - 93,627 97,363
Changes in operatng assets and iab:l’t:es:
(Increase) decrease in accounts receivable 6,060 68,001 1,102 75,163(Increase) decrease in deferred outflows - - 4,487 4,48)Increase (oecrease) in accounts payaoe (76,681) 42,180 8,904 (25,597)Increase (decrease) in accrued liabilties 3,408 (6,402) 369 (2,625)Increase (decrease) in claims payable - 21,412 21,412Increase (decrease) in net pension liabil.ty - (5,052) (5,052)Increase (decrease) in deferred inflows (9,777) (9,777) Net Cash Provided y Operating Act v t es: S 56,552 126,363 10,821 193,736 There were ro significant noncash capital, investing or financing activties for the year ended June 30, 2021. 103
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STATISTICAL SECTION
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City of Avalon
Net Position by Component Unltct)
Last Ten Fiscal Years Ended June 30, 2021
‘Basis of Accounting)
Fiscal Year
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 Governmental Activites:
Net Investment In Capital Assets $ 5,115,210 $ 0,457,603 $ 5,254,766 $ 15,080,630 $ 15.181,492 $ 15,834,015 $ 08,415,980 $ 18,071,573 $ 17,160,473 $ 16,040,730 Restricted 4,724,345 4,847,667 4,797,159 9,302,317 10,054,472 9,647,347 5,678,170 5,917,627 5,964,954 5,925,238 Unrestricted 3,640,400 2,796,614 - 3,928.446 (341.912) 459.861 362,963 (2,489,918) (3,508,641) (6,724,996) (3,928,234) Total Governmental Activities Net position $ 13,499,995 $ 13,092,084 $ 13,980,371 $ 24,041,015 $ 25,695,825 $ 25,844,315 $ 21,804,632 $ 20,470,859 $ 17,400,431 $ 18,037,714 Business-Type Activites:
Net Investment In Capita i Assets $ 11,704,370 $ 11,353,200 $ 10,514,342 5 9,291,816 $ 11,289,620 $ 12,875,974 $ 13797j66 $ 34,250,161 $ 17,527,952 $ 18,080,970 Restricted - , - - - - - - -
Unrestricted 2,729,83) 2,902,958 7,682,753 1,799,708 936.764 (2,241.623) (4,694,649) (6,414,133) (8,716,811) (8,556,659) Total Business-Type Activities Net Position $ 14,434,200 $ 14,256,059 $ 13,197,095 $ 11,091,824 $ 12,221,384 $ 10,634,482 $ 9,102,917 $ 7,836,028 $ 8,811,151 $ 9,494,311 Primary Government Activites;
Net rneestmerrt in Capital Assets $ 16,819,620 $ 10.770,803 5 15,769,108 $ 24,372,446 8 26,471,112 $ 25,709,999 6 32,213,746 5 32,321,734 $ 34,688,435 $ 34.121.700 Restricted 4,724,345 4.847.667 4,797,159 9,302,317 10,054,472 9,647,347 5,878,170 5,917,827 5.964,954 8,925,238 Unrestricted 6,390,230 5,699,673 6,611,199 1,457.796 1.395,625 (1,878,569) (7,184,367) (9,932,674) (14.441,807) (12.514.913) Total Primary Government Activities Net Position $ 27,934,198 5 27,318,143 $ 27,177,466 $ 35,132,559 $ 31,920,209 $ 36,478,761 $ 30,907,549 $ 38,308,887 $ 26,211,882 $ 27,812,025 Notes’.
(It aeeosnt,enstunda rds nequrre that tIne ret position be reported in three slmposent snub in the Rnunoal statements: tnsentvsest ,n 4u0,tai assatv, net Cl related des,; Restricted; and Urrestected.
The net pa4ti In isconoidered rest, 1164 lvi venen
(a) an etten,at party, such asthe State oncalrornya cr14, federal govettmrnl, piatesarestrictian on Inch the resenueseia) be used, or (6) trebling legislator is enacted by the City.
Sosncei City of Anaian, Firarte Department
104
City of Avalan
Changes in Net PositionLast Ten Fiscal Years(Accrual Basis or Accounting) PROGRAM REVENUES:Governmental Activites:
Chargm to, Se’orces.
Trars3n,tan.oeiGeirral Govern,wrt
Operatirg G-anls aid Ccrtr Pjt,OrcCapital Grants and Coilr.bjt ens Total 0 overnmen sal Activities
Business-Type Activites;
Charges for Services
HarborSewerSaltwaterSolid wasteAvalor Transit
Orating Grants and Con:,,6s1’onsCapita’ Graits arc Cort-lDu:io’is Total Business-Type Actisi ties
Total Primary Governinen 6 Pee gram Revenues
Net Revenues/(Expenses):l19
$ 12.310.124 5 8,512.8141 S (8.500,330) 3,860.551) $ (8,735,782) (978.239) 230.143: (870,036) 106,952) 472,771
$ (11,266,421) S (9,243,347) $ (9,370,366) $ (3,975,523) $ (8,263,011) 398,270
8.666,378 - 765,819 - 166.783 611615 10.960,129 (161,1411 $ 17,525,539 $ 8,074,893 * 9,418,017 $ 09,799,497 $ 10,190,572 CMANGE IN NET POSITION:
C oyernmenlgl Activites
Basiness-Type Activites
Total Net Revenuesf(Espensas)
Notes:
$ 7,181,417 $ (437,91 t) $ 918,287 $ 15,930,936 $ t,654,798 (739,957) 9178. t4 1) (600,172) 149,860 1,1)] ,86fl
$ 6,445,460 $ (616,052) $ 318,115 $ 16,080,796 $ 2,788,650 (t) Net Revenu es/(Expenses) is an indication on the degree 10 wh,ch a pro gram is st, ppontad mmli Its 0,-ill tees and program specific gtaslts sersas i Is ccli acre on funding from tao Sonrce: City of Asalon, Finance Departsleet
105
Fiscal Year
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
$
EXPENSES:
Governmental Activites:
Pablic Safety
Fire and AmbulancePlanning. lailditg and t ttI nnerln5Common us SerelcesPublic Works Tia ns porn as Ion
Interest on cong Term DebtGenerals onernmeni
Total G oeernmental Activities
Buxinens-Type Activites:
Ha,b,rCa It was enSoI,dwasl
3vaion, Trarsit
Total Business- Type ActivitiesTonal Primary Govern menu Expenses $ 1.395,130
2,192,235
524,207
417,143
1,196,187
1, 524.9 10 $
2,417,121
593,542647,264
1,412,695
1,609,457
2 ,8 tO, 506
662,705488,156
1,341,087
$ 1,666,447 $
2,234,419
686,280684,0t6
1,758,393
1,369,466
2,578,140
952,172269,569
2, t 70,4 39
831,113
5,772,101 4,t13,193 . 3,954,189 - 4,487,763 4,460,420
$ 12,278,116 $ 10,708,715 $ 10,872,500 * 11,512,356 $ 11,703,281 $ 6,737,132
2,300,773
374.531
‘.891,046
$ 6,635,914 S
2.1 76,506
440.6 09
1,929,042
7,067,8422. 3 79, 154
569,887
1.955,137
S
Pubic Sa’etyerr and mobs ancePlain -ig, Build ng and erg iee399 Con’mjnoy ServicesPub :cs’ecres
$ 7,407,768
2,018,134
157,334
1,685,867
7,641,7817,379,334
562,328
1,708,229
5 180,762
$ 11,304,484 S 18.182,273 $ 11,982.565 5 it,eeA,ats 12,470,934S 23,582,600 21,890,988 S 22,865,315 5 22.677,136 5 24,174,149 S 103.395 S CalL??
714,521 277.360
154.722 227.721
217.917 41.274
30,924 40,083
31,533 37,383 35,871 32,825 9,865
919,913 1,178,725 1,381,652 5,575$46 704,987
165.cFl 236,168 65,084 55,326 1.126,397
$ 1.937,994 $ 2,195,911 $ 2,372,170 $ 7,643,757 5 2,967,433 197.773762.920345.627
39,&34S43
203, 2 14 S288,831271,525
169,875
42,315
189,840
342.080275.880
4 7. 146
It 138
5 6,635.867 9 6.797,464 S 7,729, 639 $ 7,563,426 $ 7,354,462
1.460.372 1.425,307 1,553,636 1,558,907 1,783,886
394.540 386,466 432,273 435,719 585,986
1.875.406 1.831.844 1.912.331 1.891,206 1,932,075
6,374
11.000 5,001 106.098 341,181
Coserniienial Acr,snles
8u5.nnss’Tyne Act’s les
Total Net RevenkIesf( Expenses)
GENERAL REVENUE AND TRANSFERS;Governmental Activites:
Taxes;
959,741
S 10,376.185 S 10.451.730 5 11.122,779 $ 11,557,856 5 12,943,705 12,314,179 $ 11,647.641 5 13.494,949 S 19,201,613 9 15,911,138 Proçe’ty Tacos 2.091,502 S t.lSi.248 $ 756.254 1,193,876 5 1,163,112Sales Tenet 1.192,9:1 1.297.640 1.319.878 1.465,591 1.703,561 Tnasisnl ci.panry Taxes 3.835,073 1347.119 1.b6.677 4,990,716 4,935,735 oteeTanes 1.142,4:7 1.170,528 1,154713 1,746.337 1,764767 cicentes and penmls 79,57’ 98.348Insesleneni ta-n’ ngs 43,771 05.616 :6,917 407,395 r4iscel lanec as Inconie 373.818 92.53’ 77,091 6,385,566Special itemTransfers Taial Governmental Activities
Business-Type Activites:
Taxes;
Other Taxes S I 71,041 $ 165,481 $ 258,978 $ 244.346 $ 292,415 investment tarniss 1 7,301 13,770 10,886 12,476 17,434Transfers — 373,151 - 356,740 Total Business-Type Activities $ 188,342 $ 552,402 $ 269,864 $ 256,422 $ 661,059Tonal Primary Governwen 8 Genera I Revenue and Transfers $ 17,713,881 $ 8,627,295 $ 9,688,481 $ 20,056,319 5 11,051,661 City of Avalon
Changes in Net PositionLast Ten Fiscal Years(Accrual Basis of Accounting)EXPENSES:
Governmental Activites:
Public SafetyFire and AmbulancePlanning Building and Engineeni noCommunity SersicesPublic Worksrraesportanior Interest oti Long rem DebI
General lsnternmenil
Total Governmental Actlniuies
Business-Type Activites:
HarborSeeinr
Salloaler
C, as In
Ayalcr Trars,l
Tonal Business-Type ArtivitiesTonal Primary Government Enpenses PROGRAM REVENUES:Governmental Activiten:
$ 9.121,314 $ 8,466,175 $ 9.115.182 $ 9,025,514
2.511,536 7,400.199 1.779.788 2.522,183
754,575 1,254,550 964.175 039,078
1.900,826 2,164,625 2,113,316 1,961,156
530070 550.15: 5:1,869 5)0.664
$ 14,928,941 $ 14,739,054 5 15,484,330 $ 54,052,225$ 27,327,483 $ 28,683,020 $ 29,849,637 $ 28. 244,580 $ 7,079,561
1,651,585
692,2 50
2. 343, 76 4
161859
$ 12,629,026$ 25,384,157
C’,arges let 19,7065:
Pal’ Safely[‘c and Amb,jlancePlanning, tjild g and Eng,neen,rg Coermuniry Seceices
Pn tic Works
Tears poet 8181,
Ope’ al,r; Deanno and ConIr, bjtc’isCapnlal Gratis and Csinnr buli:is Total Governmental Activities
21.088 36.299
,406.002 .990,19
2.605.747 625.678
$ 4,975,234 6 4,525,505
341.011
$ 3,217.694 $ 1,005,826 $ 3,233,686
Business-Type Activilen:
Chances for Sera,ces:
Net Revenues)(Eacpenses):ls,
Governeien Ca’ Acln,tes
.,sqess’ryle Act vines
Tonal Net Revenuesl(Enpensen)
(7,413.278) $ 59.45.465)V.566.4923 51057983,’
$ (8,931,730) S (10,473,4481
I )Iu,l’7.613) $ (11156.529) $ 9.2X,445(
)i.7781871 16’ 119 84.814
S (12,925,800) $ (10,792,386) $ (9,136,641)
GENERAL REVENUE AND TRANSFERS:Governmental Activites:
Taxes:
rl7erCy rates
Sales rand
rranse’,t Occupancy Tate.OlIler Tanes
Licenses and Permits
lsvetemenl turningsIjiecellaneous IncomeSpecial 11cm
T,aeslens
Total Governmental Activities
Business-Type Activiten:
Taens:
DIher lanes
I rveslmeI5i I a,nin(eTeaosfnis
Total Business-Type ActivitiesTotal Primary 0 o,ernnient General Revenue and Transfers 9 620.272 S 867,778 5 0,271,932 5 635 455 $ 1,259,528
L543,485 1,645,275 1554, 761 1,42 7,939 1,400,722
5.310.656 5,248,676 5,396,940 4,504,444 8,12 1,549
53)3,246 1,246,321 1,234,741 1,078,661 1,178,644
4,9 54
54,995 124,572 216,998 305,55259,358 61,510 197,957 251,094 (747.960)
(1,350,748) (898,898) (99,501l) 1297,0115 ) 261 .5015)
$ 7,571,758 $ 8,058,444 $ 9,853,840 $ 8,1 84,603 $ 9,858,728 $ 148,490 $ (1,357,021) (1,3)3,773) 5 (3,141,926) $ 6)7,283 189,952 94,570 (1.166,889) 6)86.621 693,160
$ 338,442 $ (1362,381) $ (2,tOO,&t2) $ (2,043,305) $ 1,320,443 9,039
36,376
12 4,374
(I) Net Reverrues/(txpentes) is an indica lice of the degree to Which a pronraes and ether general recycles.
Source: City oF Avalor, rinaece Depantnient
Fiscal Veer
2016-2011 2017-2018 2018-2019 2019-2020 2020-2021
5 2,056,215 $ 1911,060 $ 2,378,772 3 1,087,859 $ 2,125,694 3,569,570 3,149.195 2,943.672 3,309,372 2,891,284
675,980 729,323 767,785 1,092,561 706,448565,879 920,576 941,336 1,165,265 958,451 1,975145 2,467.024 2,897,356 2,334,979 I, 709,9641.265,438 1.622,644 1.334,729 1,266,36) 1,233,2701.790.185 3,085,154 3.111.657 2,905,955 3.809 821 S 12,398,512 $ 13,943,966 $ 14,365,307 14,162,355 $ 12,455,131 S 166.619
138404414,028
55,294
28. 332
196.2 73 S393,448
390.361975,348
20 .9 59
219,951 S40a,999
301.119
99.269
19. 904
41.811
1,795.73 I
195.190594.142388.42:
56,99822. 56946,409
1.912,09 7
250,847365,597794.4 75
72,06444.4:6
40,681
2.5 65.602
Operan ‘so G’anls ar.d Coei:r 1-21,0,5Cao,lai C ‘anIta 04 Con:’itst,oeis Total Souainess-Type Avities
Total Prieary 0 overnnlen 8 Pro gram Revenues
Harbor $ 8.112,479 S 8,059,255 5 8,110.681 $ 6,902,280 $ 7,311,550 1,’73,133 2,506,192 2.617,834 2,627.155 1.608.799
Sal1nalee 654,569 705,669 flO,0I I 775,368 834,645Sal,Oe,asne 1.935.642 1(09.064 I,95:A62 1.845,828 1,984,384 68,144 175,828 115.668 92,503 43,114
155,470 375167 159,567 2,2)3.154 31.378
13.420,489 $ 13,681,071 $ 13,709,141 5 14,446,368 $ 13,013,830
18.396,723 S 18,209,572 16,923,83’ $ 17.452,094 $ 66,147,516 CHANGE IN NET POSITION:
15 IveenmenBusiness- Type Aclivites
Total Net Revenues/(Enpenses)
Noles.
$ 260,305 $ 079,870 $ 209,870 $ 869,722
87,651 73,884 2)1.927 165,756
1.350,248 868.896 89.5)0 797,000
$ 1,698,404 $ 1,152,553 $ 5)0,296 1 632,475
$ 9,270,172 $ 9,211,091 $ 10,325,138 1 8,747,085
$ 191,884
144,972
251,500
$ 598,356$ 10,457,084
106
City of Avalon
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 General Fund:
Nonspendable
Due from ACIA Successor Agency $ - $ $ - $ S - $ 757,797 $ 1,814,260 $ 1,679 $ 937 $ Due from Hospital - - - - - 300,000 340,000 340,000 - - Restricted - - - - - - - - -
Unassigned 3,602,295 4,123,563 4,708,518 5,689,906 7,317,587 3,604,944 2,058,271 4,992,369 4,552,307 6,757,3 13 Total General Fund $ 3,602,295 $ 4,123,563 $ 4,708,518 $ 5,689,906 $ 7,317,587 $ 4,662,741 $ 4,212,531 $ 5,334,048 $ 4,553,244 $ 6,787,313 All Other Governmental Funds:
Nonspendable
DuefromAclASuccessorAgency $ - $ - $ - $ - - $ - $ 6,043 $ 6,043 $ - $ - Restricted
Low and ‘lodarate Income Housing 4,161,577 4,143,227 4,187,316 8,646,403 8,980,482 9,000,663 5,790,195 5,848,223 5,856,987 5,773,570 Community Development 23,977 126 136 138 138 138 566 - - - Cap,tal Projects 174,19S 175,459 63,700 57,912 53,683 57,378 51,278 36,634 39,255 78,398 Street projects 364,596 528,855 546,005 597,864 630,641 589,168 25,830 32,770 68,920 73,270 Unass,gnsd 489,219 - (457,700) (207,299) (40,687) (193,419) (20,500) (7,926) (21,849) (360,249) Total All Other Governmental Funds $ 5,213,564 $ 4,847,607 $ 4,339,459 $ 9,095,018 $ 9,624,257 $ 9,453,928 $ 5,853,412 $ 5,915,944 $ 5,943,313 $ 5,564,989 818,000,010Ou
$16, 000050. OlD
$14, 1)-DO, 01)0.00
E;;;1:II 1111111 ‘
,> £ ,7Y u9” .> -cf’ .
c .*r , -
.0
1. ‘tO ‘1. 0. + ‘1. tO’ 1. ‘0 -
Total General Fend • To cal All Other Gosersineata I Fs sos Source: City of Avalon, finance Department
107
Revenues:
City of Avalon
Changes in Fund Balances - Governmental runds
Last Ten Fiscal Years
(Nodil’ied Accrual Sasis of Accounting)
Fiscal Year
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 lees
S 1.422,975
2.275,156
570427
592,352
.046.490
3.751,67 I
1.010.71)
1, 502 .933
2, 706,8)8
638,283
47,903
1,034,328
3,703,815
292,896
S 1, 5 70. 166
2,189,975
660,062
607 .4 58
LU 7,324
4,080.975
83 .628
$ 1,632,760
2,508.035
9,372
208,935
.28 1, 382
4.C16,9
1. 292,354
1.7 14.0 72
1.7i.670
930,193
527,990
280 7, 52
1265,436
3,259,296
1,515.92 7
$
S 7.958.725 8 7,712615 5 7,731.507 S 8,796,320 S 9,046.830 S 8.741.233 $ 0,206,393 8 11421,349 8 5,253,134 s 10.220,246 L serIes, FenPIS, all cers 272.134 352.787 484,9:0 424,997 443,453 559.623 558,445 488,735 547,566 535,968 Fires, ro’Ie lures, a’,d’era’les 73,168 7,55 90,361 94,869 53.742 72.132 64,506 74,579 86.350 87.505 Irsestl,ent:ncoffe 40,988 13,697 13,439 :1.576 425,286 53,769 101,345 218,537 265.37: 5.353 IUeraovem’rertal Resenac 1,326,336 1.855,557 156,329 5.143.662 2.829,007 2.526.094 2.218.133 2.084.349 1.530,8U :299.94:
Csx’g es’or Serv,ces 414.551 353,680 349, :63 50:0:8 421,749 421,730 534.557 523,990 473.709 444,787 Otis’ Revenue 428,925 97,185 67,148 77.094 1.284.066 123441 551.503 214,544 278.693 085.394 Total Revn,ues $ 10,214,827 $ 10,468,972 $ 9,489,847 $ 16,044.535 $ 14,492,748 $ 12,504.689 8 13,283,879 $ 15,026,383 $ 11,402,565 $ 12,748,994 Espenditures:
Public Safety 1.370,304
F,’exr a ATbalance 2492.103
plant ‘ig. Ssi ll’lg ant Eigiieer,rq 513,765
00711” aneW Senoces 352,568
253 ic Works 798,559
Trans7orOallOl
C-e’ie’e’ Goverr nero 5.146,567
Ca,ite fuper.0 cares 466,392
0e31 Serv.ce
2r,’lc pal 8:2202 . . 134,468 123,984 156.468 :11.834 :23,299 Interest 716,898 . .
. 9,339 16,025 4,221 13.812 13,713
Total Eapendilures $ 12,264,396 $ 10,559,258 $ 20,296,896 $ 10,309,588 $ 11,984,588 5 14,945,866 $ 13,114,038 $ 13,752,834 $ 11,858,990 $ 10,631,749 Excess of Revenues Over (Under)
Espendi lures $ (2,049,569) $ (200,284) $ (807,041) $ 8,736,947 $ 2,508,160 $ (2,441477) 169,841 1,273,549 $ (456,435) $ 2,117,245 Other Financing Sources (Uses):
Proceeds From Advances/Capital Leases $ . $ - 5 $ - $ 966.250 8 $ $ Gain/(Loss) - . 765,819 - -
Transfers In 2,362,025 511,067 636,326 122,143 116,818 . 149,000 181,500 144,697 122,938 Transfers Out (2,342,095) (156.312) (416,3561 (122,143) (468,018) (1,350,248) 11,247,898) (271,000) (441.697) (384,338) Total Other Financing Sources (Uses) $ 19,930 $ 355,655 $ 883,788 $ - $ (351,240) $ (383,998) $ (898,898) $ (89,500) $ (297,000) $ (261.500) Special Items $ (12,923,589) $ . - $ . $ . $ , (3,200,580) $ - $ - $ - Net Change in Fund Balances $ (14,953,228) $ 155,371 $ 76,747 $ 5,736,947 $ 2,156,920 $ (2,825,175) $ (3,929,637) $ 1,184,049 $ (753,435) $ 1,855,745 Debt service as a Percent ca Non-capital
Espendi lures 12.94% 0.00°’, 0.00% 0,00% 0,00% 1.16% 1,07’/, 0,93% 1,1% 1.3% Sosrc,: City of Avalon, Finance Department
1,821,490
2 .94 7 .4 19
727,313
752,602
1,913,548
1,297,965
3,206,761
337.2 30
$ 1.845,800
3,03:281
823,262
789,395
2,134,717
1.334,728
2.945,815
1,66,391
2,967,159
685,304
930,595
1,626. ‘04
1,256,363
2,230 .0 15
185,113
1,642,918
2,744.346
636. 726
7 32 .4 29
:083.412
1263,272
2,265.863
14]. 176
108
City of Avalon
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
2020-2021
Motor Vehicle
Franchise Taxes,Lc5e Taxes
4%
Motor
Source: City of Aveon, Finance Departmert
Transient Business Vehicle
Property Sales Occupancy License Admission Franchise License Other Fiscal Year Taxes Taxes Taxes Taxes Taxes Taxes Taxes Gas Taxes Taxes Total 2020-2021 1,358,504 1,490,722 6,021,549 85,289 550,464 133,670 410,790 169,058 - 10,220,046 2019-2020 1,085,289 1,427,939 4,504,444 98,253 468,191 131,878 381,446 155,664 - 8,253,104 2018-2019 3,086,212 1,554,762 5,396,940 70,697 647,521 142,730 373,928 148,559 - 11,421,349 2017-2018 867,778 1,646,275 5,348,876 94,699 679,904 111,084 360,633 96,144 - 9,205,393 2016-2017 620,272 1,543,489 5,310,656 89,921 654,592 116,814 329,816 75,640 - 8,741,200 2015-2016 1,163,212 1,703,660 4,915,216 75,330 666,430 124,882 314,624 85,496 - 9,048,850 2014-2015 1,093,876 1,465,691 4,990,716 84,973 621,166 125,304 302,221 112,373 - 8,796,320 2013-2014 756,254 1,319,878 4,466,672 79,827 552,843 138,151 294,934 122,948 - 7,731,507 2012-2013 1,251,248 1,297,640 4,042,219 84,119 508,840 148,574 285,786 93,189 - 7,711,615 2011-2012 2,091,600 1,192,911 3,835,023 77,368 502,390 187,106 273,687 - 1,866 8,161,951 change from
Base Year 2011-
2012 -35.0°/c 25.0°/c 57.0% 10.2% 9.6°/c -28.6°/o 50.1°/c N/A N/A ZS.2/c I 04
Gas Taxes
2%
109
City of Avalon
Governmental Fund Expenditures by Function
Last Ten Fiscal Years
Source: city of Avalon, Finance Department
‘ion ,.r.. BuOc!n.0 049
F ‘iiteflr’i
2020-2021 GOVERNMENTAL FUND EXPENDITURES - TOTAL
2011-lOu 20 1-101 I 1014 1014 2014.1015 1003’ 2006 1006,401’ 101’ 3010 1110- In 1! 1116.4 020 41154021 no
General
Fiscal Year Government Public Safety Ambulance
$ 2020-2021 $ 2,285,860 1.642,918 $ 2,746,346
2019-2020 2,230.015 1,664.391 2,967,159
2015-2019 2,945,815 1,8’S.500 3,031,281
2017-2016 3,206.762 1,527.490 2,947,419
2016-2017 3,299296 1,71’c72 2,741,670
2018-2016 4,016.80’ 1,632.760 2,108,001
211’-2015 4,020,975 1,570,166 2, 169,975
2013-2014 3,703,815 1,502,933 2,706,838
2012-2013 3,751,671 1,422.976 2,275,158
2011-2012 5,146,667 1,370,304 - 2,092,103
capital topendituros -— Debt Se,m,ce
i’ra,is porcatioll - 1% 1 —
12%
cu,,nnavSoree:1s.
General Gonern,nc’.,in
22 Planning,
Fire and Building and Community Capital
Engineering Services Public Works Transportation Expenditures Debt Service Total $ 636,716 $ 702,429 $ 1,083,412 $ 1,253,270 $ 143.776 $ 137,0t2 10,631.749 885,30’ 902,696 :626,40’ 1,266,363 :85:13 133,646 :1.858.991 6202€? 789,095 2,154,717 1,324,728 72,447 120,689 :3,752.634 727,013 752,612 1.9:0,545 1,297,945 307,230 1179 13.11’.031 930.193 527,992 1,807,501 1,265,031 2,515,927 :43.777 :49’5,866 944,372 206,905 :361,382 - :292,351 - 11,98’,588
660,052 607,453 1,1:7,32’ - 63,628 - :0,309,558
638,283 417,903 1,034,228 - 292,898 - 10,296,898
570,127 592,062 1,046,490 - 1,010,773 ‘ 10,669,266
520,765 352,568 - 798,699 - 466,392 1,626,898 12,264,396 sib
110
City of Ava Ion
Top 25 Sales Tax Producers
(Miscellaneous Information)
Current Fiscal Year and Ten Years Ago
I Fiscal Year 2020-2021 1 I Fiscal Year 2011-2012 I
Taxpayer Business Type Taxpayer Business Type
1 Abes Liquor Store Convenience Stores/L qucr Abes L:quor Store Convenience StoresiLiquor 2 Antonios Deli Casual Dinng Antonios Pizzeria & Cabaret Casual D ning Anconios Rzzeria & Caberet Casual Dining Armstrongs
RestdUflt
& Casual Dining
4 Avalon Liquor Store & Gifts Convenience Stores/Liquor Avalon Fuel Dock Fuel/Ice Dealers Bluewater Grill Casual Dining Buoys & Guls Family Apparel 6 Buoys & Gulls Family Appare; Camival Cruise Lines Transportation-Non-Auto 7 Casino Ballroom Casuai Dining Casino Ballroom Casual Dining Catal:na By The Sea WtJGi’Navelty Stores Catalina Cantina Casual Dining 9 Catalina Soortswear & Souvenir AnjGi’Novelty Stores CC Gallagher Casual Dinir:g :0 Chets -iardware Bui ding Materials Chets Hardware Building Materals 11 Coriey s:and West Casual Dining El Galleon Casual Dinirg 12 Coyote loss Casua Dining Island Threadz Family Apparel 13 El Galleon Casual Dining Landing Bar B Grill Casual Dining 14 Island Threadz Family Apparel Leos Catalina Drugstore Drug Stores 15 Leos Catalina Drugstore Drug Stores Lobster Trap Casual Dining 16 Lobster Trap Casual Dining Luau Larrys Casual Dining 17 Luau Larrys Casual Dining Mi Casita Casual Dining
18 Maggies Blue Rose Casual Dining Original Jacks Casual Dining 19 Mi Casita Restaurant Casual Dining Pebbly Beach Building Supply Building Materials 20 NDMK Fish House Casual Dining Pic Mc Fry Casual Dining 21 Original Jacks Casual Dining Ristorante Villa Portorino Fine Dining 22 Perico Gallery Art/Gift/Novelty Stores Sallys Waffle Shop Joes Place Casual Dining 23 Plc Mc Fry Casual Dining Santa Catalina Island Co Business Services 24 Steves Steakhouse Fine Dining Steves Steakhouse Fine Dining 25 Vons Grocery Stores Vons Grocery Stores
Percentage of Total Sales Tax collected 74.820/o
Note: The names are listed in alphabetical order and not by sales tax volume.
Source: State Board of Egualization, California Department of Taxes and Fees Administration, State Controller’s Office, The HdLCompanies 111
All Others (Secured)
Total Assessed Valuation
City of Avalon
Ten Largest Property Taxpayers
Current Fiscal Year and Ten Years Ago
I Fiscal Year 2020-2021 Fiscal Year 2011-2012
538,775,303 83.93% 582,518,267 86.22%
$ 999419586 000,00”/s $ 675,648,493 100,00°/s
Sotrce: Los Angeles County Assessor 2020/21 Coinnbintd Tax Rolls and tIle SOt Non unitary Tax Roll Percent of Percent of
Assessed Total Total
Owner/Taxpayer Primary use Valuation Assessed Assessed Valuation Assessed Santa Catalina Island Company Residential $ 70,139,888 7.02% $ 40,889,028 S.OS’,’n Jack Tucn5i Cnmmerc ml 16,141,255 1.62% 9,128,789 t.35’/a Pacific Catalan IP
(Pesdi,9.nynealsenpae,eisl Commercial 14,498,754 1.45% 4,071,529 0.60% Volts C ompanins lec. Commercial 9,965,891 1.00% 0.00%
Porter Enterprises Commercial 9,210,738 0.92% 7,862,523 1.16% Blanxy A Hagenatn Trust Residential 8,992,943 0.90% 9,249,562 1.37% Chimes T nwer Investment Inc. Commercial 8,952,916 0.90% 0.00% Sa ma Catalina Island Consereancy Residential 8,005,624 0.80% McKisney Capital Hermns a Pantners LLC Commercial 7,875,100 0.77’,h - 0.00% Catalina Real Estalt Partners LLC Commercial 7,061,174 O.71’/n 0.00% Hermnsa NNN LLC
{Peeainq ?pyenis Sn ea,,els) Commercial ‘ 0.00% 5,146,223 0.76% Tremott Street Parstership Residential ‘ 0.00% 4,439,520 0.66% Clifford W Hagae Residenlial — 0.00% 4,271,780 0.63%
[lyrosen Properties, Inc. Commercial - 0.00% 4,175,345 0.62% ‘tarilla LLC Commercial — 0.00%
. 3,895,929 0.58%
Top Ten Totals (Secered and Unsecured) $ 160,644,203 16.01% $ 93, 130,226 13.78% 112
City of Avalon
Assessed Valuation of Taxable Property
Last Ten Fiscal Years
Total Assessed Total Direct
Fiscal Year Residential Commercial Vacant Recreational Industrial All Otherst Value (Note) Tax Rate 2020-2021 $ 697,204,734 $ 141,867,236 $ 35,578,343 $ 2,803,806 $ 2,763,262 $ 119,202,205 $ 999,419586 0.16536 2019-2020 661,578,073 118,902,938 37,148,644 5,349,834 2,709,084 108,480,986 934,169,559 0.16594 2018-2019 625,996,028 118,334,096 59,913,419 5,452,915 2,569,982 106,271,317 918,537,757 0.16606 2017-2018 607,627,793 111,456,862 57,086,073 5,345,999 2,519,593 101,416,608 885,452,928 0.14989 2016-2017 573,888,182 102,347,039 28,485,444 3,072,858 2,470,191 99,831,606 810,095,320 0.16595 2015-2016 548,937,353 97,234,833 27,421,249 3,026,704 2,433,089 97,660,168 776,713,396 0.16597 2014-2015 521,666,092 94,542,077 29,897,505 2,967,419 2,385,431 94,633,939 746,092,463 0.16555 2013-2014 512,204,816 85,283,160 28,164,256 2,954,010 2,374,654 93,144,649 724,125,545 0.16554 2012-2013 500,261,150 83,405,749 24,215,171 2,896,093 2,328,094 87,626,853 700,733,110 0.84946 2011-2012 478,198,369 84,805,390 24,176,557 2,839,311 2,282,446 83,346,420 675,648,493 0.84946 Notes: 6xempt values grouped with all others not included in Total Source: Los Angeles County Assessor 2011/12 - 2020/21 Combined Tax Rolls Assessed Valuation by Category
(Secured -Before Exemptions)
All Otherst
12°/o Fiscal Year Ended June 30, 2021
Industrial
O0/o
Recreational ,-- -
00/0 Vatant
40/0
Commercial
14%
Residential
70%
In 1978, California voters passed
Proposition 13 which set the property
tax at a fixed amount of one percent.
This amount is shared by all taxing
agencies for which the subject
property resides within. In addition
to the one percent fixed amount,
property owners are charged taxes
as a percentage of assessed property
values for the payment of any voter
approved bonds. Assessed valuation
is based on 100 percent full value in
accordance with Section 135 of the
California Revenue and Taxation
Code.
113
City of Avalon
Demographic and Economic Statistics
Last Ten Calendar Years
O/ of Pop 25+ % of Pop 25+
Personal Income Per capita Unemployment with High School with Bachelors calendar Year Population (in thousands) Personal Income Rate Median Age Degree Degree 2011 3780 S 88,142 S 23,317 5.9% 34.5 75.70/o 21.3%
2012 3,797 S 89,651 $ 23,611 4.3% 36.9 77.4% 17.0%
2013 3,820 $ 105,589 S 27,641 3.5% 35.4 74.3% 21.2%
2014 3,822 S 104,692 S 27,391 6.9% 34.7 740% 19.8%
2015 3,678 $ 107,558 $ 29,243 5.6% 34.7 ?S.50/o 18.6%
2016 3,718 S 119,071 $ 32,027 4.4% 34.8 76.9% 21.1%
2017 3,867 $ 120,838 $ 31,248 2.4% 34.2 80.3% 22.8%
2018 3,845 $ 114,686 S 29,827 l.30/o 34.5 85.0% 18.9%
2019 3,929 $ 135,070 $ 34,377 0.4% 39.8 90.0% 21.8%
2020 3,973 $ 127,342 S 32,051 0.1% 42.1 86.5% 22.7%
Notes and Data Sources:
Population: California State Department of Finance.
Unemployment Data: California Employment Development Department Income, Age and Education Data: US Census Bureau, most recent American Community Survey 114
City of Avalon
Full-Time Equivalent Employees
by Department
Last Five Fiscal Years
Function 2016-2017 2017-2018
Fiscal Year
20 18-20 19 2019-2020 2020-2021
9.0 4.9
5.7 12.4
28.2 4.5
18.4 83.1
10.1 4.8
5.6 12.4
24.2 2.9
19.9 79.9
8.8 5.4
5.7 12.4
24.5 2.2
21.2 80.2
9.3 5.6
6.0 13.0
24.9 3.0
21.9 83.7
7.2 4.8
4.0 13.0
19.8 1.5
14.5 64.8
Source: City of Avalon, Finance Department
C ITV OF AVALON
EMPLOYMENT
Last Five Fiscal Years
• Public Works
• Planning
c Harbor
Fire
• Finance
6 Comniunity Services
• Administration
Administration
Community Services
Finance
Fire
Harbor
Planning
Public Works
Total Full-Time Employees
90.0 60.0
70.0 60.0
50.0 40.0
30.0 2.0.0
10.0 115
+ DayisFa rr 18201 Vuri kaiinuii Avenue I SLj(e lI(JOIkvüieCA926L1 CERTIFILU PUBLIC ACCOUNTANTS Main: 9494742020 F-ax: 9412633120
SUMMARY OF AUDIT RESULTS
City CouncilCity of Avalon
Avalon, California
We have audited the financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the City ofAvalon, California (City), for the year ended June 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally acceptedauditing standards and GovernmentAuditing Standards, as well as certain information relatedto the planned scope and timing of our audit. We have communicated such information in a meeting with the Mayor on October 13, 2021. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit FindingsQualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financialstatements. No new accounting policies were adopted and the application of existing policieswas not changed during 2021. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past andcurrent events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.
The most sensitive estimates and judgments affecting the City’s financial statements were:
• Judgment as to the recording of grant reimbursements and the related period of recognition (current period or unearned revenue) is based on the program being funded and any restrictions placed on amounts received. • Judgment as to which city capital projects should be capitalized and depreciated in the proprietary funds and government-wide financial statements is based on the dollar amount of expenditures, as well as whether or not the expenditures preserve or increase the asset’s utility or extends the useful life of certain assets. • Judgment involving the estimated useful lives and depreciation methodology for capital assets is based on past history of similar types of assets, future plans as to their use,and other factors that impact their economic value to the City.
I
City Council
City of AvalonAvalon, California
• Judgment related to the collectability of accounts and notes receivable is based on past history with the payor or for similar types of receivables. • Estimated other post employments benefit (DPEB) liabilities and the net pension liability is based on management’s process of applying third party actuarial studies androlling forward their assumptions to the end of the fiscal year. • Judgments with respect to recording the remediation obligation is based on applying third party studies.
We evaluated key factors and assumptions used to develop these estimates and judgments in determining that they are reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
• Disclosures regarding significant contingent liabilities associated with pollution rem ed ia t ion.
• Disclosures regarding the net pension liability and OPEB liability.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the AuditWe encountered no significant difficulties in dealing with management in performing and completing our audit.Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to theappropriate level of management. Material audit adjustments corrected by management included adjustments to record changes to the Landfill trust and liability, record pension and OPEB activity, record due to/from activities, and adjust proprietary fund expenses.Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting,reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.Management RepresentationsWe have requested certain representations from management that are included in the management representation letter dated January 12, 2022. 2 City Council
City of Avalon
Avalon, California
Management Consultations with Other Independent AccountantsIn some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If aconsultation involves application of an accounting principle to the governmental unit’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principlesand auditing standards, with management each year prior to retention as the governmental unit’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the Schedule of the Plan’s Proportioned Share of theNet Pension Liability, the Schedule of Plan Contributions, Schedule of Changes in Total OPEB Liability and Related Ratios and the Budgetary Comparison Schedules, which is requiredsupplementary information (RSI) that supplements the basic financial statements, Our procedures consisted of inquiries of management regarding 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 ouraudit of the basic financial statements. We did not audit the RSI and do not express anopinion or provide any assurance on the RSI With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods ofpreparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the use of City Council and management of the City ofAvalon and is not intended to be, and should not be, used by anyone other than these specified parties.
ç LI-P
Irvine, California
January 12, 2022
3 •I DavisFa rr 18201 Von Kormon Avenue I SuRe Davis Farr LIP CERTIFIED PUBLIC ACCOUNTANTS Mom: 949.474.20201 Fox: 949.263.5520 IndeDendent Accountant’s Report on Agreed-Upon Procedures AoDlied to Appropriations Limit Worksheets
City CouncilCity of AvalonAvalon, CaliforniaWe have performed the procedures enumerated below on the City of Avalon, California (City) appropriations limit worksheets for compliance with the requirements of Section 1,5 of Article XIIJB of the California Constitution for the year ended June 30, 2021. The City is responsible for compliance with Section 1.5 of Article XIIIB of the California Constitution.
The City has agreed to and acknowledged that these procedures are appropriate to meet the intended purpose of evaluating compliance with the requirements of Section 1.5 ofArticle XIIIB of the California Constitution and the League of California Cities publicationentitled Article XIIIB Appropriations Limitation Uniform Guidelines for the year ended June 30, 2021. This report may not be suitable for any other purpose. The proceduresperformed may not address all the items of interest to a user of this report and may notmeet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures performed and the results of those procedures were as follows:
1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustmentfactors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.
Results: No exceptions were noted as a result of our procedures.
2. We recalculated the mathematical calculations reflected in the City’s worksheets.
Results: No exceptions were noted as a result of our procedures.
3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by the City and to information provided by the State Department of Finance.Results: No exceptions were noted as a result of our procedures.
City Council
City of Avalon
Avalon, California
4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council as the limit for the prior year.
Results: No exceptions were noted as a result of our procedures.
We were engaged by the City to perform this agreed-upon procedures engagement andconducted our engagement in accordance with standards established by the AmericanInstitute of Certified Public Accountants. We were not engaged to and did not conduct anexamination or review, the objective of which would be the expression of an opinion or conclusion, respectively on the worksheets referred to above. Accordingly, we do notexpress such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriationlimit for the base year, as defined by the League publication entitled Article XllI8 Appropriations Limitation Uniform Guidelines.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Management of the City of Avalon, California and is not intended to be, and should not be, used by anyone other thanthe specified party. c
Irvine, California
January 12, 2022
2 ‘I i::,isI:a rr I&201 \hn Karmun Avenue I Suite CERTIFIED PUS L IC ACCOUNTANT S Mniri: 949 474.2020 Fn: q49.26 tro 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
Indeoendent Auditor’s Report
City Council
City of AvalonAvalon, CaliforniaWe 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 of the City of Avalon (the City) as of and forthe year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereondated January 12, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’sinternal control over financial reporting (internal control) as a basis for designing auditprocedures 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 theeffectiveness 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 beprevented 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 materialweakness, 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 materialweaknesses. However, material weaknesses may exist that have not been identified. We did identify a deficiency in internal control that we consider to be a significant deficiency identifiedbelow as 2021-001. (2021-001) Adjustments Detected During the Audit
As a result of audit procedures and the City’s review of financial information for thefiscal year ended June 30, 2021, there were thirteen material and immaterial audit adjustments. The auditing standards acknowledge that the auditor should not be partof the City’s system of internal control because adjusting material transactions in the financial statements creates an independence threat and reduces auditortransparency. An important element of controls over financial reporting is for management to identify adjustments necessary for financial statements to be fairly stated.
Recommendation
We recommend that management prepare and post all adjustments to the accounting records prior to the start of the audit. When this is not possible, management shouldidentify and communicate to the auditors the potential areas of adjustment that mayneed to be addressed during the audit process. This will help to reduce the risk ofmaterial misstatement.Management’s Corrective Action Planned or TakenManagement agrees with this finding and will work to ensure future adjustments arereflected in the accounting records prior to the start of the audit, or when this is notpossible, that the potential areas of adjustment are identified and communicated to the auditors.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements arefree from material misstatement, we performed tests of its compliance with certain provisionsof laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion oncompliance 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 is required to be reported under Government Auditing Standards.
Also, as a service to you, we identified one other matter that is not considered a material weakness or a significant deficiency but has been provided to the City to enhance its existing internal controls.(2021-002) Inventory Tracking
As a result of procedures performed during our maintenance yard/garage observation and walkthrough, we noted a potential risk related to loss of supplies and equipment in the yard as the result of no formal tracking and internal control system being inplace.Recommendation We recommend the city implement a process of overseeing the flow of items into andout of stock at the maintenance yard and garage. At a minimum, a process of physicaland cycle counts should be implemented to ensure the inventory management system is accurate. Additionally, organization of inventory items, counts of all incoming inventory, tagging of inventory, and signing out inventory items when used in service should be considered to protect city assets against fraud and waste.
City of Avalon’s Response to Finding
The City’s response to the finding identified in our audit is noted above. The response was not subjected to the auditing procedures applied in the audit of the financial statements and,accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectivenessof 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’sinternal control and compliance. Accordingly, this communication is not suitable for any otherpurpose. iZ LLP
Irvine, California
January 12, 2022