Avalon City Council
June 6, 2023

AVALON CITY COUNCIL MEETING
TUESDAY, JUNE 6, 2023 - 4:30 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 the City Clerk's Office (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 II). 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 social distancing recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (Cal/OSHA) and the County of Los Angeles, and pursuant to findings made under AB 361, the CITY OF AVALON'S CITY COUNCIL SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancing requirements. 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 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. Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments to [email protected].

For the public's convenience, but not participation, the meeting can be viewed:

On local cable: Catalina Broadband Solutions channel 3
Streaming Online: www.cityofavalon.com/meetings
*Streaming on Facebook Live: www.facebook.com/CityOfAvalonOfficial Streaming on YouTube: https://www.youtube.com/CityofAvalonCA

FOR REMOTE PUBLIC PARTICIPATION
1) Join the Meeting via Phone Conference (Voice Only):

Phone Number: (669) 444-9171,
Meeting ID: 865 4733 0775
Passcode: 064959
When you would like to comment during the meeting enter *9 on the phone's key pad to activate the "raise hand" button at the time the Agenda Item is being presented for City Council consideration.

CALL TO ORDER / ROLL CALL/ PLEDGE OF ALLEGIANCE / INVOCATION

CITY COUNCIL AGENDA
JUNE 6, 2023
PAGE2

CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 case.

ANNOUNCEMENTS / WRITTEN COMMUNICATIONS

DEPARTMENT HEAD REPORTS

CITY MANAGER REPORT/ CITY ATTORNEY REPORT

COUNCILMEMBER REPORTS / 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.

PRESENTATIONS:
1 . Kristine Guerrero, Regional Public Affairs Manager and Legislative Director for the Los Angeles County Division of League of California Cities will provide a general update regarding Cal Cities, a legislative update, and an overview of ballot measures sponsored by the California Business Roundtable.

2. Finance Director Matthew Baker will provide an overview of the proposed budget for Fiscal Year 2023-2024.

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 May 16, 2023 regular City Council Meeting.

2. Warrants
Expenditures Submitted for Approval
o Warrants in the amount of $1,787,000.1 2.
• Including $496,448.09 CIMC Measure H disbursement
o One payroll in the amount of $211,607.85.
o Three electronic fund transfers totaling $62,087.84.

Recommended Action
Approve the total expenditures for May 8, 2023 through May 26, 2023 totaling $2,060,695.81 .

CITY COUNCIL AGENDA
JUNE 6, 2023
PAGE 3

3. Findings to Continue to Hold Remote TeleconferenceNirtual City Council Meetings Pursuant to Assembly Bill 361
As the State of Emergency has ended, the City Council can continue to hold virtual meetings without providing notice of the City Council's teleconference location if the City Council m~kes the following two findings: 1. State or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and

2. The City Council reconsiders the circumstances of the state of the emergency and danger presented by COVID-19; Having made the findings, the City Council can continue every 30 days to authorize meetings under AB 261 to protect the health or safety of attendees.

Recommended Action
Reconsider the circumstances of COVID-19 state of emergency proclaimed by the Governor and COVID-19's continued impact and determine that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and as such, that continuing to utilize the protections of Assembly Bill 361 will protect the health and safely of attendees.

4. Cooperation Agreement for Continued Participation in the Los Angeles Urban County Community Development Block Grant Program
The City of Avalon receives Community Development Block Grant Funding annually through an agreement with The Los Angeles County Development Authority. The current agreement expires on July 1, 2023.

Recommended Action
Authorize the City Manager to execute the cooperation agreement with the Los Angeles County Development Authority for a three-year term beginning July1 , 2023 - June 30, 2027.

5. Resolution Adopting List of Projects for Annual SB1 Allocation Senate Bill 1 provides funding to address basic road maintenance, rehabilitation and critical safety needs of local streets and roads in addition for other transportation needs in the state. One of the requirements of the program is that each agency must adopt a list of projects for their annual formula allocation that is submitted to the California Transportation Commission.

Recommended Action
Adopt a resolution adopting a project for Fiscal Year 2023-24 funded by S81 : The Road Repair and Accountability Act of 2017.

PUBLIC HEARING

6. Fiscal Year 2023-2024 Miscellaneous Fee Schedule
The City charges fees for miscellaneous public services, use of City facilities and equipment rental and other activities. User fees are assessed and collected for City services and programs provided by various departments.

CITY COUNCIL AGENDA
JUNE 6, 2023
PAGE4

7. 8.

Recommended Action

1. Hear a presentation regarding the Miscellaneous Fee Schedule. 2. Open the Public Hearing to hear public comments. 3. Close the Public Hearing. 4. If consensus, adopt the fee schedule as proposed.

Public Hearing Regarding Resolutions Adopting the Reports Proposing to Have Sewer, Saltwater, and Solid Waste Collection Service, and Grease Collection Service Charges Collected on the Property Tax Roll for Fiscal Year 2023-24 and Directing the City Clerk to File Said Report with the Los Angeles Auditor-Controller to Place Said Charges on the Tax Roll
In order for Los Angeles County to collect the Charges for the City on the property tax roll, the City Council is required to hold a noticed public hearing, where customers subject to the fees are afforded an opportunity to make objections or protests to collecting the fees on the property tax roll.

Recommended Action

1. Open a public hearing on whether to collect the annual solid waste collection service charges, grease collection service charges, sewer charges, and saltwater charges (collectively, the "Charges"), on the property tax roll by the County of Los Angeles. 2. If no majority protest is filed, close the public hearing and adopt four resolution adopting reports of the Charges.

TOA Article 8 Hearing
The Metropolitan Transit Authority (MTA) is required to hold a public hearing on the community's unmet public transit needs in accordance with the Transportation Development Act (TOA) Article 8. TOA Article 8 funds are currently being used by the City of Avalon to fund Avalon's Consolidated Land Transportation Program which includes DAR and fixed routes.

Recommended Action
Open the Public Hearing and accept comments from the public. Close the Public Hearing.

GENERAL BUSINESS

9. Contract Assignment for Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
This item appears on the agenda at the request of representatives from Catalina Coastal Tours, LLC. The City Council considered a request from Catalina Coastal Tours, LLC to assign the remaining term of the semi-exclusive shore boat franchise agreement to Catalina Coastal Shoreboat Service, LLC. The City Council requested the potential assignee provide additional information. No additional information was provided.

Recommended Action
Consider a request to assign the remaining term of the semi-exclusive shore boat franchise agreement with Catalina Coastal Tours, LLC to Catalina Coastal Shoreboat Service, LLC. Provide direction to Staff.

CITY COUNCIL AGENDA
JUNE 6, 2023
PAGES

ADJOURN

NOTICE OF POSTING
I, Devin Elise Hart, declare that the City Council Agenda for Tuesday, June 6, 2023 was posted on Friday, June 2, 2023 on the City's website www.cityofavalon.com, and at City Hall, 410 Avalon Canyon Road.
evin Elise ~~ Hart, Management Analyst
MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
June 6, 2023
City Clerk
AGENDA ITEM: 1
CITY MANAGER: 1\!
Devin Hart, Management Analyst
City Council Minutes
RECOMMENDED ACTION(S): Approve minutes from the May 16, 2023 regular City 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 on the posted agenda pursuant to the Brown Act.

ATTACHMENTS:
• May 16, 2023 regular City Council Meeting Minutes

AVALON CITY COUNCIL MEETING WHICH ALSO INCLUDED

A MEETING OF THE CITY COUNCIL ACTING AS

THE HOUSING AUTHORITY
TUESDAY, MAY 16, 2023
THIS VIRTUAL MEETING IS HELD PURSUANT TO AB 361

MINUTES
Due to social distancing recommendations from the Center for Disease Control and State of California Division of Occupational Safety and Health (Cal/OSHA) and the County of Los Angeles, and pursuant to findings made under AB 361, the CITY OF AVALON'S CITY COUNCIL SHALL GENERALLY BE AVAILABLE TO THE PUBLIC REMOTELY. The general public may attend the meeting in the Council Chambers however must adhere to social distancing requirements. 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 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 Coundl Chambers who is ill or exhibiting symptoms of COVID-19. Additionally, the general public may participate in Oral Communication and address the City Council on an agenda items by providing comments via Zoom or by sending comments to [email protected].

CALL TO ORDER - 5:00 p.m.

ROLL CALL - Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Lisa Lavelle, Michael Ponce and Mary Schickling. Also present: City Manager David Maistros, City Attorney Melissa Croswaith and Management Analyst Devin Hart.

Councilmember Yesenia De La Rosa absent.

WRITTEN COMMUNICATIONS- None.

PRESENTATIONS:

1. Finance Director Matthew Baker discussed the Capital Improvement Program and Capital Budget for Fiscal Year 2023-2024.

CONSENT CALENDAR - There were eight (8) items on the consent calendar. Motion to approve Items #1-#8 made by Michael Ponce, seconded by Mary Schickling. (4 Ayes- Marshall, Lavelle, Ponce and Schickling. 1 Absent- De La Rosa).

1. Minutes
Approved minutes from the April 18, 2023 Special City Council Meeting, April 18, 2023 regular City Council Meeting, April 20, 2023 Special City Council Meeting, and May 2, 2023 regular City Council Meeting.

HOUSING AUTHORITY/CITY COUNCIL MINUTES
MAY 16, 2023
PAGE2

2. 3.

4. 5.

6. 7.

8. Warrants
Approved total expenditures for April 24, 2023 through May 5, 2023 totaling $1,243,189.67.

Findings to Continue to Hold Remote TeleconferenceNirtual City Council Meetings Pursuant to Assembly Bill 361
Reconsidered the circumstances of COVID-19 state of emergency proclaimed by the Governor and COVID-19's continued impact and determine that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and as such, continued to utilize the protections of Assembly Bill 361 will protect the health and safely of attendees.

Fiscal Year 2022-2023 Third Quarter Treasurer's Report
Adopted Resolution No. SA 23-09 A Resolution of the City Council of the City of Avalon/Successor Agency to the Avalon Community Improvement Agency Adopting the Treasurer's Investment Report for Fiscal Year 2022/2023 Third Quarter.

Harbor Patrol Boat Volvo 04 Engine Replacement
Authorized the City Manager to approve an expenditure for purchase of a new Volvo 04- 230 HP Engine package for Patrol Boat 7.

Award Professional Audit Services Contract
Authorized the City Manager to execute a professional services agreement with DavisFarr LLP for professional auditing services for the fiscal year ending June 30, 2023, with the option of extending for the two (2) subsequent fiscal years.

COVI 0-19 Prevention Program Policy
Adopted the COVID-19 Prevention Program Policy.

Social Media Use and Public Outreach Policy Update
Adopted updates to the City Social Media Use and Public Outreach Policy.

GENERAL BUSINESS

9. Consideration of Transportation Permit - Chad McIntyre, dba Chad's Taxi Service Discussed the application from Chad McIntyre, dba Chad's Taxi Service, and continued the item to a future meeting after the applicant provides more information regarding potential business operations.
1 O. Approval of Additional One-Time $85 Commuter Book Subsidy for the Month of June 2023
Approved a one-time $85 additional commuter book subsidy (for a total subsidy of $170 per book) for the month of June 2023. Motion to approve by Michael Ponce, seconded by Lisa Lavelle. (4 Ayes - Marshall, Lavelle, Ponce and Schickling. 1 Absent- De La Rosa).

HOUSING AUTHORITY/CITY COUNCIL MINUTES
MAY 16, 2023
PAGE3
CLOSED SESSION - 6:29 p.m. to 7:03 p.m.

Following the appropriate announcement of the Closed Session items the City Council went into Closed Session to discuss the following:
**Items taken out of order***

3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: City Manager

1. REAL PROPERTY NEGOTIATIONS
Property: Public Right of Way - Tremont Street (102 sq. ft.) Agency Negotiator: City of Avalon City Council
Negotiating Parties: City Manager and Cory Hoyt
Under Negotiation: Price and Terms of Payment
** The following Closed Session Item was the City Council acting as the Housing Authority***

2. CONFERENCE WITH LEGAL COUNSEL - REAL PROPERTY NEGOTIATIONS Property: 128 Marilla Avenue
Agency Negotiator: City Manager
Negotiating Parties: City Manager and Captains Foundation Under Negotiation: Price and Terms of Payment
Following Closed Session Mayor Marshall announced there was no reportable action.

Mayor Marshall adjourned the meeting at 7:11 p.m.

I, Devin Hart, Management Analyst, do hereby certify that the DVD videotape of the City Council Meeting on May 16, 2023, is the official record of the Council Meeting and is on file and maintained in City Hall.

Devin Hart, Management Analyst

CITY OF AVALON CITY COUNCIL
MEETING DATE: June 6, 2023 AGENDA ITEM: --'--- 2 -
ORIGINATING DEP: Finance CITY MANAGER: B:f
PREPARED BY:

SUBJECT:

Matthew Baker, Finance Director
Warrants
RECOMMENDED ACTION(S): Approve the total expenditures for May 8, 2023 through May 26, 2023 totaling $2,060,695.81.

REPORT SUMMARY: These disbursements through May 26th are comprised of warrants totaling $1,787,000.12, which includes $496,448.09 to the ~atalina Island Medical Center from Measure H funding, one payroll totaling $211,607.85, and other electronic fund transfers totaling $62,087.84.

ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 35983-36141 $ 1,787,000.12 05/26/23 PAYROLL 211 ,607.85 05/19/23
EFT - CALCARD US BANK 20,492.87 05/22/23
EFT - CALPERS RETIREMENT 38,572.73 05/16/23
EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 3,022.24 05/26/23 TOTAL DISBURSEMENTS $ 2,060,695.81
GOAL ALIGNMENT: Ongoing meeting of City obligations.

FISCAL IMPACTS: There are sufficient fwnds available, and the expenditures are included in the FY22-23 Budget.

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 Detail

CITY OF AVALON
MAY 8, 2023 - MAY 26, 2023 DISBURSEMENTS
June 6, 2023

ITEM DESCRIPTION
GF US BANK WARRANTS CKI/ 35983-36141

PAYROLL

EFT - CALCARD US BANK

EFT - CALPERS RETIREMENT

EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES

APPROVED AND AUDITED THIS
6TH DAY OF JUNE 2023

AUDIT COMMITTEE - LISA LAVELLE

AUDIT COMMITTEE - MARY SCHICKLING

TOTAL DISBURSEMENTS

AMOUNT DATE
$ 1,787,000.12 05/26/23
211,607.85 05/19/23
20,492.87 05/22/23
38,572.73 05/16/23
3,022.24 05/26/23
$ 2,060,695.81

CERTIFICATE
IN ACCORDANCE WITH SECTION 32702

OF THE GOVERNMENT CODE, I CERTIFY

THAT THE ABOVE DEMANDS ARE ACCURATE

AND THAT FUNDS ARE AVAILABLE FOR
PAYMENT.

I CERTIFY UNDER PENALTY OF PERJURY

THAT THE FOREGOING IS TRUE AND
CORRECT.

EXECUTED THIS 6TH DAY OF JUNE 2023

FINANCE DIRECTOR - MATTHEW BAKER

CITY OF AVALON
MAY 8, 2023 - MAY 26, 2023 DISBURSEMENTS
June 6, 2023

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
35983 05/12/2023 7,255.20 AAA OIL, INC FUEL- ALL DEPARTMENTS 35984 05/12/2023 854.10 ACTION SALES & MET AL CO. SUPPLIES - HARBOR 35985 05/12/2023 2,026.86 ADLER SLINGS SUPPLIES - HARBOR 35986 05/12/2023 85.70 AIR SOURCE INDUSTRIES SUPPLIES - FIRE 35987 05/12/2023 1,128.07 ALEGRIA, MICHAEL REIMB 0/P COSTS 35988 05/12/2023 567.86 ALL STAR FIRE EQUIPMENT, INC SUPPLIES - ALL DEPARTMENTS 35989 05/12/2023 1,984.00 AMARO-GUTIERREZ, SUSANNA AMNESTY PROGRAM REFUND 35990 05/12/2023 2,038.57 AMAZON CAPITAL SERVICES, INC. SUPPLIES -ALL DEPARTMENTS 35991 05/12/2023 151,612.48 AVALON ENVIRONMENTAL SVCS CONTRACT SERVICES - 04/2023, SWEEPER - 04/2023 35992 05/12/2023 2,056.73 AVALON FREIGHT SERVICES, LLC FREIGHT - ALL DEPARTMENTS 35993 05/12/2023 839.30 AVALON MOORING & DIVING SERVICE - HARBOR 35994 05/12/2023 1,912.59 BASIN MARINE SUPPLIES - HARBOR 35995 05/12/2023 3,876.00 BEYOND SOFTWARE SOLUTIONS CONTRACT SERVICES - IT 35996 05/12/2023 49,250.00 BOULDER CONSULTANTS SUPPLIES - PUBLIC WORKS 35997 05/12/2023 150.00 BOYD, RAY SUNGLASSES PER MOU
35998 05/12/2023 679.30 BROWN, MARISA RETIREE INSURANCE - 05/2023 35999 05/12/2023 122.03 BUTTE, JAMES REIMB 0/P COSTS
36000 05/12/2023 783.96 CAMPBELL, STEPHANIE REIMB 0/P COSTS 36001 05/12/2023 137.80 CAMPOS, MIGUEL SUNGLASSES PER MOU 36002 05/12/2023 418.00 CANBY, CLAUDIA SUPPLIES - HARBOR, PUBLIC WORKS 36003 05/12/2023 3,688.28 CATALINA BEVERAGE CO SUPPLIES -ALL DEPARTMENTS 36004 05/12/2023 137,775.00 CATALINA CHAMBER OF COMMERCE. FY23 TRUE UP 36005 05/12/2023 55,398.60 CATALINA EXPRESS 2ND HALF 04/2023, TRAVEL- FINANCE 36006 05/12/2023 534.26 CATALINA ISLAND MEDICAL CENTER EMPLOYEE SCREENINGS 36007 05/12/2023 36,551.83 CATALINA ISLAND MEDICAL CENTER SALES TAX PASS HRU 36008 05/12/2023 268.00 CATALINA PEST CONTROL SERVICE - HARBOR 36009 05/12/2023 219.96 CATALINA YAMAHA SUPPLIES - GARAGE 36010 05/12/2023 2,867.09 CDW GOVERNMENT SUPPLIES - IT
36011 05/12/2023 24,303.70 CIRA GENERAL LIABILITY INSURANCE, W/C 01/23-03/23 36012 05/12/2023 7,428.30 CO. OF LOS ANGELES SHERIFF'S DEPT. WATERFRONT PATROL - 03/2023 36013 05/12/2023 1,886.76 COASTLINE EQUIPMENT SUPPLIES - GARAGE 36014 05/12/2023 1,035.36 CONNOLLY PACIFIC CO. SERVICE - PUBLIC WORKS 36015 05/12/2023 487.28 CONNOLLY PACIFIC CO. SERVICE - PUBLIC WORKS 36016 05/12/2023 419.82 CONNOLLY PACIFIC CO. SERVICE - PUBLIC WORKS 36017 05/12/2023 420.18 CONNOLLY PACIFIC CO. SERVICE - PUBLIC WORKS 36018 05/12/2023 835.09 COOK, AMANDA RETIREE INSURANCE - 05/2023 36019 05/12/2023 212.80 DE MYER, J. PAUL REIMB 0/P COSTS 36020 05/12/2023 DELTA DENTAL VOID - MULTI STUB CHECK
36021 05/12/2023 13,467.70 DELTA DENTAL DENTAL- 04/23-05/23 36022 05/12/2023 318.98 DION & SONS MARINE FUELS INC FUEL - HARBOR 36023 05/12/2023 EDISON VOID - MULTI STUB CHECK
36024 05/12/2023 72,434.77 EDISON UTILITIES - All DEPARTMENTS 36025 05/12/2023 204.21 EDWARDS, TRECIA REIMB 0/P COSTS 36026 05/12/2023 12,109.15 ESG ENGINEERING SERVICE - PUBLIC WORKS 36027 05/12/2023 2,817.50 ESG ENGINEERING SERVICE - PUBLIC WORKS 36028 05/12/2023 4,180.96 ESG ENGINEERING SERVICE - PUBLIC WORKS 36029 05/12/2023 6,754.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 36030 05/12/2023 720.00 ESG ENGINEERING SERVICE - PUBLIC WORKS

CITY OF AVALON
MAY 8, 2023- MAY 26, 2023 DISBURSEMENTS
June 6, 2023

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
36031 05/12/2023 540.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 36032 05/12/2023 396.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 36033 05/12/2023 900.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 36034 05/12/2023 5,080.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 36035 05/12/2023 2,160.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 36036 05/12/2023 1,020.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 36037 05/12/2023 1,080.00 ESG ENGINEERING SERVICE - PUBLIC WORKS 36038 05/12/2023 1,110.28 ESG ENGINEERING SERVICE - PUBLIC WORKS 36039 05/12/2023 FIDELITY SECURITY LIFE INSURANCE VOID - MULTI STUB CHECK 36040 05/12/2023 FIDELITY SECURITY LIFE INSURANCE VOID- MULTI STUB CHECK 36041 05/12/2023 3,115.45 FIDELITY SECURITY LIFE INSURANCE VISION - 03/23-05/223 36042 05/12/2023 117.81 GALLS, LLC UNIFORMS - FIRE
36043 05/12/2023 1,093.61 HARRY'S MARINE SERVICE, LLC SUPPLIES - HARBOR 36044 05/12/2023 18,619.13 HOME DEPOT CREDIT SERVICES SUPPLIES - PUBLIC WORKS 36045 05/12/2023 292.50 HIRSCHMAN, JORDAN SERVICE - HARBOR 36046 05/12/2023 228.80 JORDAHL CONSTRUCTION SUPPLIES - PUBLIC WORKS 36047 05/12/2023 3,231.00 JORDAHL CONSTRUCTION SUPPLIES - PUBLIC WORKS 36048 05/12/2023 7,000.00 KING,JOHN SETTLEMENT AGREEMENT 36049 05/12/2023 224.37 LINDE GAS & EQUIPMENT INC. SUPPLIES - HARBOR 36050 05/12/2023 2,377.94 LLEWELLYN SUPPLY CO. SUPPLIES - HARBOR 36051 05/12/2023 286.00 MANAGED HEALTH NETWORK SERVICE - ADMINISTRATION 36052 05/12/2023 951.00 MASA DUES - 04/2023
36053 05/12/2023 109.49 MCMASTER-CARR SUPPLIES - PUBLIC WORKS 36054 05/12/2023 100.00 MEAD, KATHLEEN REFUND - AMB.ULANCE FEES 36055 05/12/2023 84.33 MEFFERT, JOHN REIMB O/P COSTS
36056 05/12/2023 80,600.92 SULLIVAN, MATTHEW PROGRESS PAYMENT 4 36057 05/12/2023 344.10 MM INTERNET, INC. SERVICE- IT
36058 05/12/2023 3,523.33 NAPA AUTO PARTS SUPPLIES - GARAGE 36059 05/12/2023 150.00 OLSON,ADAM SUNGLASSES PER MOU
36060 05/12/2023 86.00 SANCHEZ, TIMOTHY SERVICE - ADMINISTRATION 36061 05/12/2023 3,757.05 POLYDYNE, INC. SUPPLIES - CEMETERY 36062 05/12/2023 186.05 QUILL CORP SUPPLIES - ALL DEPARTMENTS 36063 05/12/2023 9,357.91 SIRIA'S CLEANING SERVICE 1ST HALF 05/2023 36064 05/12/2023 3,000.00 SOUTHWEST MARINE RESOURCE, INC. SERVICE - HARBOR 36065 05/12/2023 STANDARD INSURANCE COMPANY VOID - MULTI STUB CHECK 36066 05/12/2023 2,411.78 STANDARD INSURANCE COMPANY LIFE INSURANCE - 04/23-05/23 36067 05/12/2023 5,000.00 TOWNSEND PUBLIC AFFAIRS, INC SERVICE - ADMINISTRATION 36068 05/12/2023 2,256.30 TRACY, ROBERT REITREE INSURANCE - 2022 36069 05/12/2023 48.50 UNDERGROUND SERVICE ALERT/SC SERVICE - PUBLIC WORKS 36070 05/12/2023 CORPORATE PAYMENT SYSTEMS VOID- MULTI STUB CHECK 36071 05/12/2023 CORPORATE PAYMENT SYSTEMS VOID- MULTI STUB CHECK 36072 05/12/2023 32,841.43 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL

CITY OF AVALON
MAY 8, 2023 - MAY 26, 2023 DISBURSEMENTS
June 6, 2023

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
36073 05/12/2023 787.96 WALTERS WHOLESALE ELECTRIC CO SUPPLIES - FIRE 36074 05/12/2023 74.76 WEST MARINE PRO SUPPLIES - HARBOR 36075 05/12/2023 5,751.85 WESTRIDGE ENVIRONMENTAL GROUP SUPPLIES - COO 36076 05/12/2023 1,072.50 WITTMAN ENTERPRISES, LLC SERVICE - FINANCE 36077 05/12/2023 772.85 ZIM'S OF CATALINA SERVICE - HARBOR 36078 05/24/2023 496,448.09 CATALINA ISLAND MEDICAL CENTER MEASURE M PT. 1 36079 05/26/2023 4,037.76 AAA OIL, INC FUEL - ALL DEPARTMENTS 36080 05/26/2023 2,772.10 ALEGRIA, MICHAEL REIMB 0/P COSTS 36081 05/26/2023 804.60 ALL STAR ELITE SPORTS SUPPLIES - RECREATION 36082 05/26/2023 5,274.44 AMAZON CAPITAL SERVICES, INC. SU PLIES - ALL DEPARTMENTS 36083 05/26/2023 200.00 ARELLANO, MARTHA REFUND - RENTAL FEES 36084 05/26/2023 1,321.10 AT& T COMMUNICATIONS - ALL DEPARTMENTS 36085 05/26/2023 846.48 AVALON FREIGHT SERVICES, LLC FREIGHT - ALL DEPARTMENTS 36086 05/26/2023 7,039.01 AVALON MOORING & DIVING SERVICE - HARBOR 36087 05/26/2023 5,384.16 BENSON LEGAL, APC LITIGATION COSTS 36088 05/26/2023 9,910.26 BEST, BEST & KRIEGER, LLP LEGAL FEES - 04/2023 36089 05/26/2023 3,075.17 BEYOND SOFTWARE SOLUTIONS CONTRACT SERVICES - IT 36090 05/26/2023 77.18 BOYD,RAY REIMB 0/P COSTS
36091 05/26/2023 13,629.76 MONZON, MIGUEL A. SUPPLIES - PUBLIC WORKS 36092 05/26/2023 1,367.64 CATALINA BEVERAGE CO SUPLIES - ALL DEPARTMENTS 36093 05/26/2023 6,676.50 CATALINA EXPRESS TRAVEL- USC BAND 36094 05/26/2023 4,200.00 LONG, DAVID CONTRACT SERVICES - COO 36095 05/26/2023 8,690.00 CATALINA ISLAND COMPANY RENT - 05/2023 36096 05/26/2023 656.69 CDW GOVERNMENT SUPPLIES - IT
36097 05/26/2023 325.00 CITY CLERKS ASSOCIATION OF CA TRAINING - ADMINISTRATION, ANNUAL DUES 36098 05/26/2023 134,294.79 CO. OF LOS ANGELES SHERIFF'S DEPT. RESIDENT DEPUTY - 04/2023 36099 05/26/2023 5,246.50 COLLINS COLLINS MUIR & STEWARD, LLP LITIGATION COSTS 36100 05/26/2023 2,082.09 DANGELO CO SUPPLIES - PUBLIC WORKS 36101 05/26/2023 3,382.59 DAPEER, ROSENBLIT & LITVAK,LLP SERVICE - VEHICLES 36102 05/26/2023 763.00 DEWEY PEST CONTROL SERVICE - ALL DEPARTMENTS 36103 05/26/2023 1,344.36 DION & SONS MARINE FUELS INC FUEL - HARBOR 36104 05/26/2023 1,314.51 DOCKBOXES UNLIMITED SUPPLIES - HARBOR

CITY OF AVALON
MAY 8, 2023- MAY 26, 2023 DISBURSEMENTS
June 6, 2023

CHECK DATE

NUMBER ISSUED AMOUNT NAME DESCRIPTION
36105 05/26/2023 137.52 GALLS, LLC UNIFORMS - FIRE
36106 05/26/2023 2,i55.62 GANAHL LUMBER COMPANY SUPPLIES - PUBLIC WORKS, HARBOR 36107 05/26/2023 442.03 GARCIA, MICHAEL REIMB O/P COSTS 36108 05/26/2023 2,024.00 GE SOFTWARE, INC. SERVICE - PUBLIC WORKS 36109 05/26/2023 66.33 GONZALES, ALIANA REIMB O/P COSTS 36110 05/26/2023 1,088.90 GRAINGER SUPPLIES - PUBLIC WORKS 36111 05/26/2023 55.00 ISLAND FIRE EXTINGUISHERS, INC. SERVICE - FIRE 36112 05/26/2023 103.25 JORDAHL CONSTRUCTION HHW DISPOSAL 36113 05/26/2023 413.00 KATIE'S KITCHEN SENIOR MEALS - 04/2023 36114 05/26/2023 403.10 LINDE GAS & EQUIPMENT INC. SUPPLIES - HARBOR 36115 05/26/2023 951.00 MASA SERVICE - 06/2023
36116 05/26/2023 347.96 MATTHEWS INTERNATIONAL CORPORATION SUPPLIES - CEMETERY 36117 05/26/2023 1,062.43 MCMASTER-CARR SUPPLIES - HARBOR 36118 05/26/2023 150.00 MONTGOMERY, SCOTT SUNGLASSES PER MOU 36119 05/26/2023 114,272.65 MONTROSE ENVIRONMENTAL SOLUTIONS CONTRACT SERVICES - 04/2023 36120 0S/26/2023 . 672.00 ORIGINALJACKS RESTAURANT & BAKERY SENIOR MEALS - 03/2023, 04/2023 36121 05/26/2023 2,228.00 NAPA AUTO PARTS SUPPLIES - GARAGE 36122 05/26/2023 130.99 PEGUERO, CILVIANO REIMB 0/P COSTS 36123 05/26/2023 400.00 PEREZ, OFELIA REFUND - RENTAL FEES 36124 05/26/2023 596.65 PTM DOCUMENT SYSTEMS SUPPLIES - FINANCE 36125 05/26/2023 1,710.48 QUILL CORP SUPPLIES -ALL DEPARTMENTS 36126 05/26/2023 150.00 RAPPOPORT, BURTON SUNGLASSES PER MOU 36127 05/26/2023 954.36 RICOH AMERICAS CORP COPIER LEASE -- PLANNING 36128 05/26/2023 20.57 RICOH USA, INC. COPIER LEASE -- PLANNING 36129 0S/26/2023 150.00 RODRIGUEZ, ELOY SUNGLASSES PER MOU . 36130 05/26/2023 877.04 SFC HOLDINGS, LLC UNIFORMS - HARBOR 36131 05/26/2023 9,357.91 SIRIA'S CLEANING SERVICE 2ND HALF 05/2023 36132 05/26/2023 153.23 SOUTH COAST AQMD PERMIT FEES - WWTP 36133 05/26/2023 4,340.01 SPECIALTY DOORS SUPPLIES - FIRE 36134 05/26/2023 219.32 THOMPSON, DEVIN REIMB O/P COSTS 36135 05/26/2023 77,348.45 PARKING CONCEPTS, INC. CONTRACT SERVICES - 04/2023 36136 05/26/2023 5,946.00 TRILLIUM SOLUTIONS INC YEARLY SOFTWARE LEASE 36137 05/26/2023 1,006.12 TRIPLE H COMPANY SUPPLIES-CEMETERY 36138 05/26/2023 1,620.00 VARGAS, TINA REFUND - AMBULANCE FEE 36139 05/26/2023 15,208.33 VEGA, EDMUNDO CONTRACT SERVICES - 05/2023 36140 05/26/2023 1,714.01 VERIZON WIRELESS COMMUNICATIONS - ALL DEPARTMENTS 36141 05/26/2023 100.95 WITMER PUBLIC SAFETY GROUP, INC. SUPPLIES - FIRE $ 1,787,000.12

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID MAY 12, 2023
May 16, 2023

LAST NAME POST DATE AMT USO VENDOR DESCRIPTION DEPARTMENT HART 3/23/2023 14.51 VONS LAUNDRY SUPPLIES RECREATION
HART 3/23/2023 20.00 AVALON LAUNDRY LAUNDRY SERVICE RECREATION HART 3/23/2023 284.90 HOMEDEPOT.COM PARK MAINTENANCE RECREATION HART 3/24/2023 510.29 ULINE DAY CAMP SUPPLIES RECREATION HART 3/28/2023 156.64 ETSY.COM DAY CAMP SUPPLIES RECREATION HART 3/29/2023 10.68 USPS FREIGHT RECREATION
HART 3/30/2023 30.78 CHET'S HARDWARE FACILITIES MAINTENANCE RECREATION HART 3/30/2023 110.46 AVALON GAS STATION FUEL RECREATION HART 3/31/2023 39.95 VONS SPECIAL EVENT SUPPLIES RECREATION HART 4/3/2023 235.80 VONS SPECIAL EVENT SUPPLIES RECREATION HART 4/3/2023 263.97 OTC BRANDS SPECIAL EVENT SUPPLIES RECREATION HART 4/3/2023 114.88 THE LOBSTER TRAP MEETING SUPPLIES RECREATION HART 4/5/2023 6.58 LEO'S CATALINA DRUG STORE SPECIAL EVENT SUPPLIES RECREATION HART 4/5/2023 21.97 VONS SPECIAL EVENT SUPPLIES RECREATION HART 4/6/2023 113.56 AVALON GAS STATION FUEL RECREATION HART 4/10/2023 19.64 AVALON GAS STATION FUEL RECREATION HART 4/12/2023 39.33 CHET'S HARDWARE SPECIAL EVENT SUPPLIES RECREATION HART 4/17/2023 149.00 AVALON GAS STATION FUEL RECREATION HERNANDEZ 3/16/2023 42.59 CHET'S HARDWARE FLOAT MAINTENANCE HARBOR MAINTENANCE HERNANDEZ 3/20/2023 48.36 CHET'S HARDWARE MAINTENANCE SUPPLIES HARBOR MAINTENANCE HERNANDEZ 3/22/2023 89.89 AVALON GAS STATION FUEL HARBOR MAINTENANCE HERNANDEZ 3/29/2023 76.74 AVALON GAS STATION FUEL HARBOR MAINTENANCE HERNANDEZ 3/30/2023 114.50 AVALON GAS STATION FUEL HARBOR MAINTENANCE HERNANDEZ 4/5/2023 14.50 CHET'S HARDWARE FACILITIES MAINTENANCE HARBOR MAINTENANCE HERNANDEZ 4/10/2023 150.94 AVALON GAS STATION FUEL HARBOR MAINTENANCE HERNANDEZ 4/11/2023 123.90 PEBBLY BEACH BUILDING SUPPLY ENGINE MAINTENANCE HARBOR MAINTENANCE HERNANDEZ 4/12/2023 95.05 AVALON GAS STATION FUEL HARBOR MAINTENANCE HERNANDEZ 4/17/2023 (9.01) CHET'S HARDWARE CREDIT HARBOR MAINTENANCE HERNANDEZ 4/17/2023 22.20 CHET'S HARDWARE FACILITIES MAINTENANCE HARBOR MAINTENANCE GILBERT 3/24/2023 92.36 CHET'S HARDWARE FACILITIES MAINTENANCE PLANNING & BUILDING GILBERT 3/24/2023 132.15 CHET'S HARDWARE FACILITIES MAINTENANCE PLANNING & BUILDING GILBERT 3/27/2023 24.41 CHET'S HARDWARE FACILITIES MAINTENANCE PLANNING & BUILDING GILBERT 3/29/2023 52.09 CHET'S HARDWARE FACILITIES MAINTENANCE PLANNING & BUILDING CAMPBELL 3/20/2023 104.00 SENDHUB COMMUNICATIONS HUMAN RESOURCES CAMPBELL 4/11/2023 85.52 AMAZON.COM OFFICE SUPPLIES HUMAN RESOURCES CAMPBELL 4/11/2023 19.78 AMAZON.COM OFFICE SUPPLIES HUMAN RESOURCES SCHMIDT 3/20/2023 67.60 CAFE METROPOLE MEETING SUPPLIES HARBOR SCHMIDT 3/21/2023 (100.27) SHOES FOR CREWS CREDIT HARBOR SCHMIDT 3/21/2023 29.45 CHET'S HARDWARE FACILITIES MAINTENANCE HARBOR SCHMIDT 3/21/2023 49.47 CHET'S HARDWARE FACILITIES MAINTENANCE HARBOR SCHMIDT 4/10/2023 190.00 LA DHS EMT CERTIFICATION EMT CERTIFICATION HARBOR SCHMIDT 4/10/2023 4.22 LA DHS EMT CERTIFICATION SERVICE FEE HARBOR SCHMIDT 4/10/2023 183.19 TACTICALGEAR.COM UNIFORMS HARBOR SCHMIDT 4/11/2023 28.25 COPQUEST INC. UNIFORMS HARBOR
SCHMIDT 4/12/2023 11.53 GALLS UNIFORMS HARBOR
SCHMIDT 4/17/2023 750.71 GALLS UNIFORMS HARBOR
MEFFERT 4/5/2023 12.73 AVALON GAS STATION FUEL FIRE
MEFFERT 4/5/2023 65.00 AVALON GAS STATION FUEL FIRE
GREENLAW 3/17/2023 91.89 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS RUBIO 3/27/2023 10.55 CHET'S HARDWARE GARAGE SUPPLIES GARAGE RUBIO 3/27/2023 91.25 CHET'S HARDWARE GARAGE SUPPLIES GARAGE RUBIO 3/29/2023 92.53 AVALON GAS STATION FUEL GARAGE
RUBIO 3/29/2023 78.33 AVALON GAS STATION FUEL GARAGE
RUBIO 3/30/2023 32.98 CHET'S HARDWARE GARAGE SUPPLIES GARAGE RUBIO 4/5/2023 85.04 AVALON GAS STATION FUEL GARAGE
RUBIO 4/12/2023 177.31 AVALON GAS STATION FUEL GARAGE
RUBIO 4/17/2023 (369.53) PARTZILLA.COM GARAGE SUPPLIES GARAGE RUBIO 4/17/2023 22.48 CHET'S HARDWARE GARAGE SUPPLIES GARAGE

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID MAY 12, 2023
May 16, 2023

LAST NAME POSTDATE AMTUSD VENDOR DESCRIPTION DEPARTMENT RUBIO 4/17/2023 369.53 PARTZILLA.COM GARAGE SUPPLIES GARAGE LONG 4/10/2023 82.73 AVALON GAS STATION FUEL FIRE
LONG 4/10/2023 108.33 AVALON GAS STATION FUEL FIRE
LONG 4/10/2023 48.63 AVALON GAS STATION FUEL FIRE
LONG 4/17/2023 8.73 AVALON GAS STATION FUEL FIRE
LONG 4/17/2023 73.61 AVALON GAS STATION FUEL FIRE
HERNANDEZ 3/17/2023 125.95 TRAILER PARTS SUPERSTORE GARAGE SUPPLIES PUBLIC WORKS HERNANDEZ 3/30/2023 392.77 PEBBLY BEACH BUILDING SUPPLY FACILITIES MAINTENANCE PUBLIC WORKS HERNANDEZ 3/31/2023 160.00 AVALON GAS STATION FUEL PUBLIC WORKS HERNANDEZ 4/3/2023 19.65 AVALON GAS STATION FUEL PUBLIC WORKS HERNANDEZ 4/3/2023 91.92 AVALON GAS STATION FUEL PUBLIC WORKS HERNANDEZ 4/4/2023 265.25 PEBBLY BEACH BUILDING SUPPLY FACILITIES MAINTENANCE PUBLIC WORKS HERNANDEZ 4/4/2023 116.50 PEBBLY BEACH BUILDING SUPPLY FACILITIES MAINTENANCE PUBLIC WORKS HERNANDEZ 4/5/2023 14.28 CHET'S HARDWARE FACILITIES MAINTENANCE PUBLIC WORKS HERNANDEZ 4/6/2023 39.99 NORTHERN TOOL FACILITIES MAINTENANCE PUBLIC WORKS HERNANDEZ 4/10/2023 93.63 AVALON GAS STATION FUEL PUBLIC WORKS HERNANDEZ 4/12/2023 51.85 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 4/13/2023 2,215.37 TRAFFICSFETYSTORE.COM TRAFFIC SAFETY SUPPLIES PUBLIC WORKS HERNANDEZ 4/13/2023 107.03 AVALON GAS STATION FUEL PUBLIC WORKS HERNANDEZ 4/13/2023 142.31 AVALON GAS STATION FUEL PUBLIC WORKS HERNANDEZ 4/13/2023 227.71 LONG BEACH HOSE & COUPLING GARAGE SUPPLIES PUBLIC WORKS HERNANDEZ 4/17/2023 2S.28 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HERNANDEZ 4/17/2023 18.00 CHET'S HARDWARE MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 3/16/2023 90.00 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/16/2023 139.00 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/17/2023 1,274.00 DAE PUMPS INC. PUMP OUT FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 3/20/2023 108.04 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/20/2023 122.45 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/20/2023 113.74 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/20/2023 45.22 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/22/2023 171.01 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/22/2023 89.02 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/23/2023 2,590.75 CROWD CONTROL WAREHOUSE WWTP SUPPLIES PUBLIC WORKS HMIELAK 3/23/2023 746.76 BRIMAR INDUSTRIES TRAFFIC SAPETY SUPPLIES PUBLIC WORKS HMIELAK 3/23/2023 220.55 PEBBLY BEACH BUILDING SUPPLY FACILITIES MAINTENANCE PUBLIC WORKS HMIELAK 3/24/2023 63.09 CHET'S HARDWARE CEMETERY SUPPLIES PUBLIC WORKS HMIELAK 3/27/2023 109.93 CHET'S HARDWARE FACILITIES MAINTENANCE PUBLIC WORKS HMIELAK 3/27/2023 4,189.77 CATALINA ISLAND VACATION RENTALS LODGING - PIER PROJECT PUBLIC WORKS HMIELAK 3/27/2023 65.99 HANKS BELTS UNIFORMS PUBLIC WORKS HMIELAK 3/27/2023 65.38 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/27/2023 99.46 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/27/2023 150.41 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 3/28/2023 (1,375.98) CATALINA ISLAND VACATION RENTAL CREDIT PUBLIC WORKS HMIELAK 3/29/2023 1,476.29 FORESTRY SUPPLIERS INC. STORM DAMAGE SUPPLIES PUBLIC WORKS HMIELAK 3/31/2023 44.32 CHET'S HARDWARE TRAFFIC SAFETY SUPPLIES PUBLIC WORKS HMIELAK 4/3/2023 6,889.13 TRAFFICSFETYSTORE.COM TRAFFIC SAFETY SUPPLIES PUBLIC WORKS HMIELAK 4/4/2023 253.35 KITCHENSOURCE.COM MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 4/6/2023 300.00 INTERNATIONAL CODE COUNCIL TRAINING PUBLIC WORKS HMIELAK 4/7/2023 6.91 CHET'S HARDWARE OFFICE SUPPLIES PUBLIC WORKS HMIELAK 4/13/2023 216.60 KITCHENSOURCE.COM MAINTENANCE SUPPLIES PUBLIC WORKS HMIELAK 4/13/2023 10.00 TICKET LEAP TRAINING PUBLIC WORKS HMIELAK 4/13/2023 106.67 CARHARTT UNIFORMS PUBLIC WORKS HMIELAK 4/14/2023 1,603.31 EPLASTICS FLOAT MAINTENANCE PUBLIC WORKS HMIELAK 4/14/2023 193.52 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 4/14/2023 88.65 AVALON GAS STATION FUEL PUBLIC WORKS HMIELAK 4/17/2023 50.40 AVALON GAS STATION FUEL PUBLIC WORKS ALEGRIA 3/20/2023 800.00 LAAFCA CONFERENCE REGISTRATION FIRE ALEGRIA 3/24/2023 475.00 CSFA TRAINING & EDUCATION EXPO TRAINING FIRE

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID MAY 12, 2023
May 16, 2023

LAST NAME POST DATE AMT USD VENDOR DESCRIPTION DEPARTMENT ALEGRIA 3/27/2023 475.00 CSFA TRAINING & EDUCATION EXPO TRAINING FIRE ALEGRIA 3/27/2023 475.00 CSFA TRAINING & EDUCATION EXPO TRAINING FIRE ALEGRIA 3/27/2023 475.00 CSFA TRAINING & EDUCATION EXPO TRAINING FIRE ALEGRIA 3/27/2023 475.00 CSFA TRAINING & EDUCATION EXPO TRAINING FIRE ALEGRIA 3/27/2023 475.00 CSFA TRAINING & EDUCATION EXPO TRAINING FIRE ALEGRIA 3/27/2023 75.00 AVALON GAS STATION FUEL FIRE
ALEGRIA 3/27/2023 109.00 AVALON GAS STATION FUEL FIRE
ALEGRIA 3/29/2023 294.96 NATIONAL EMERGENCY TRAINING TRAINING FIRE ALEGRIA 3/30/2023 102.32 AVALON GAS STATION FUEL FIRE
ALEGRIA 3/30/2023 111.00 AVALON GAS STATION FUEL FIRE
ALEGRIA 4/3/2023 600.00 ROPES THAT RESCUE TRAINING FIRE ALEGRIA 4/3/2023 99.28 VONS MEETING SUPPIES FIRE
ALEGRIA 4/3/2023 24.77 BLUE NOTE TRAVEL FIRE
ALEGRIA 4/4/2023 (441.85) CSFA TRAINING & EDUCATION EXPO CREDIT FIRE ALEGRIA 4/4/2023 (441.85) CSFA TRAINING & EDUCATION EXPO CREDIT FIRE ALEGRIA 4/4/2023 (441.85) CSFA TRAINING & EDUCATION EXPO CREDIT FIRE ALEGRIA 4/4/2023 (441.85) CSFA TRAINING & EDUCATION EXPO CREDIT FIRE ALEGRIA 4/4/2023 (441.85) CSFA TRAINING & EDUCATION EXPO CREDIT FIRE ALEGRIA 4/4/2023 (441.85) CSFA TRAINING & EDUCATION EXPO CREDIT FIRE ALEGRIA 4/4/2023 52.88 GUEST SERVICES UNIT TRAVEL FIRE
ALEGRIA 4/10/2023 22.91 HARRY CARAY'S SHORTSTOP TRAVEL FIRE ALEGRIA 4/17/2023 71.00 AVALON GAS STATION FUEL FIRE
ALEGRIA 4/17/2023 135.00 AVALON GAS STATION FUEL FIRE
$ 32,841.43 CHECK 36072

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID MAY 22, 2023

LAST NAME POST DATE AMTUSD VENDOR ACCOUNT CODE DESCRIPTION DEPARTMENT CAMPBELL 4/18/2023 52.00 SENDHUB 10135-4010 COMMUNICATIONS HUMAN RESOURCES CAMPBELL 4/18/2023 52.00 SENDHUB 10370-4010 COMMUNICATIONS HUMAN RESOURCES CAMPBELL 5/8/2023 24.00 CHECKR.COM 10135-3625 SCREENING HUMAN RESOURCES MEFFERT 4/24/2023 110.00 AVALON GAS STATION 10245-5600 FUEL FIRE MEFFERT 4/28/2023 123.18 AMZON.COM 10245-3625 MAINTENANCE SUPPLIES FIRE MEFFERT 5/1/2023 82.49 AMAZON.COM 10245-3625 MAINTENANCE SUPPLIES FIRE MEFFERT 5/3/2023 11.86 CHET'S HARDWARE 10245-3625 MAINTENANCE SUPPLIES FIRE MEFFERT 5/4/2023 48.39 AMAZON.COM 10245-3625 MAINTENANCE SUPPLIES FIRE MEFFERT 5/10/2023 377.26 DISCOUNTFILTERS.COM 10245-3625 MAINTENANCE SUPPLIES FIRE MINUTO 4/18/2023 18.68 CHET'S HARDWARE 10245-5610 VEHICLE MAINTENANCE FIRE HART 5/2/2023 82.96 CYBERLYNK NETWORK 10135-5020 IT SERVICE ADMINISTRATION HART 5/2/2023 35.00 MAIL GUN TECHNOLOGIES 10135-5020 IT SERVICE ADMINISTRATION HART 5/3/2023 25.37 VAST CONFERENCE 10135-5020 COMMUNICATIONS ADMINISTRATION HART 5/11/2023 376.92 SANGOMA 10135-5020 IT SERVICE ADMINISTRATION FRANCIS 5/9/2023 425.00 WWW.SCANPH.ORG 10125-5505 MEMBERSHIP ADMINISTRATION MAISTROS 4/21/2023 125.05 BLUEWATER GRILL 10135-3625 MEETING SUPPLIES ADMINISTRATION MAISTROS 4/21/2023 4,397.75 NATIONAL BUSINESS FURNITURE 10550-6687 OFFICE SUPPLIES ADMINISTRATION CARSTARPHEN 3/6/2023 23.85 CHET'S HARDWARE 10470-5700 MAINTENANCE SUPPLIES HARBOR CARSTARPHEN 3/20/2023 9.88 CHET'S HARDWARE 10370-3625 MAINTENANCE SUPPLIES HARBOR CARSTARPHEN 3/27/2023 96.36 BLUEWATER GRILL 10370-3625 MEETING SUPPLIES HARBOR CARSTARPHEN 3/29/2023 3.99 WEATHERFLOW 10370-3625 WEATHER SERVICE HARBOR CARSTARPHEN 4/10/2023 430.89 G02MARINE 10470-5703 COMMUNICATIONS HARBOR LONG 4/28/2023 107.80 AVALON GAS STATION 10245-5600 FUEL FIRE LONG 5/1/2023 81.18 AVALON GAS STATION 10245-5600 FUEL FIRE GONZALES 4/18/2023 84.00 CATALINA EXPRESS 12325-5510 TRAVEL TRANSIT GONZALES 4/19/2023 15.00 HOLIDAY INN 12325-5511 TRAVEL TRANSIT GONZALES 4/20/2023 33.26 EVERLINE RESORT 12325-5512 TRAVEL TRANSIT GONZALES 4/24/2023 60.54 HYATT EVERLINE RESORT 12325-5513 TRAVEL TRANSIT GONZALES 5/4/2023 14.60 TRADER JOE'S 12325-5514 TRAVEL TRANSIT GONZALES 5/5/2023 84.00 CATALINA EXPRESS 12325-5515 TRAVEL TRANSIT GONZALES 5/5/2023 8.00 MTA PARKING GARAGE 12325-5516 TRAVEL TRANSIT SCHMIDT 4/18/2023 27.30 CHET'S HARDWARE 10371-3615 UNIFORMS HARBOR SCHMIDT 4/20/2023 531.52 GALLS 10371-3615 UNIFORMS HARBOR SCHMIDT 4/20/2023 277.26 GALLS 10371-3615 UNIFORMS HARBOR SCHMIDT 4/21/2023 60.07 GALLS 10371-3615 UNIFORMS HARBOR SCHMIDT 4/24/2023 20.89 CHET'S HARDWARE 10371-5700 MAINTENANCE SUPPLIES HARBOR SCHMIDT 4/24/2023 117.54 HILLS BOAT SERVICE 10470-5610 BOAT MAINTENNCE HARBOR SCHMIDT 4/27/2023 1,647.84 RUGGED COMPUTING 10371-4010 COMMUNICATIONS HARBOR SCHMIDT 5/1/2023 38.00 CATALINA EXPRESS 10370-5510 TRAVEL HARBOR SCHMIDT 5/1/2023 35.34 GALLS 10371-3615 UNIFORMS HARBOR SCHMIDT 5/2/2023 180.87 CHET'S HARDWARE 10371-5700 MAINTENANCE SUPPLIES HARBOR SCHMIDT 5/2/2023 27.49 CHET'S HARDWARE 10371-5700 MAINTENANCE SUPPLIES HARBOR SCHMIDT 5/2/2023 391.56 GALLS 10370-3615 UNIFORMS HARBOR SCHMIDT 5/4/2023 37.38 CHET'S HARDWARE 10371-4010 COMMUNICATIONS HARBOR SCHMIDT 5/5/2023 120.11 GALLS 10370-3615 UNIFORMS HARBOR HART 4/19/2023 1,540.00 LIFETIME.COM 10265-5646 TREMONT HALL MAINTENANCE RECREATION HART 4/20/2023 93.85 THE HOME DEPOT 10265-5646 TREMONT HALL MAINTENANCE RECREATION HART 4/21/2023 586.04 CROWN AWARDS 10265-5624 YOUTH PROGRAM SUPPLIES RECREATION HART 4/24/2023 51.87 VONS 10265-5631 SPECIAL EVENTS RECREATION HART 4/24/2023 29.44 THE HOME DEPOT 10265-5646 TREMONT HALL MAINTENANCE RECREATION HART 4/26/2023 (93.85) THE HOME DEPOT 10265-5646 CREDIT RECREATION HART 4/28/2023 37.80 CHET'S HARDWARE 10265-5700 MAINTENANCE SUPPLIES RECREATION HART 4/28/2023 116.66 AVALON GAS STATION 10125-5600 FUEL RECREATION HART 5/4/2023 29.67 CHET'S HARDWARE 10265-5700 MAINTENANCE SUPPLIES RECREATION HART 5/5/2023 54.62 BRAINSTROM PRODUCTS 10265-5631 SPECIAL EVENTS RECREATION HART 5/8/2023 13.13 LEO'S CATALINA 10265-5631 SPECIAL EVENTS RECREATION HART 5/8/2023 19.54 AVALON GAS STATION 10125-5600 FUEL RECREATION HART 5/8/2023 148.80 AVALON GAS STATION 10125-5600 FUEL RECREATION ALEGRIA 4/19/2023 336.00 CATALINA EXPRESS 10245-5510 TRAVEL FIRE ALEGRIA 4/19/2023 252.00 CATALINA EXPRESS 10245-5510 TRAVEL FIRE ALEGRIA 4/19/2023 117.00 AVALON GAS STATION 10245-5600 FUEL FIRE ALEGRIA 4/21/2023 10.00 CATALINA ISLAND CHAMBER 10245-3625 DUES FIRE ALEGRIA 4/24/2023 35.46 LYFT 10245-5510 TRAVEL FIRE

CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID MAY 22, 2023

LAST NAME POST DATE AMTUSD VENDOR ACCOUNT CODE DESCRIPTION DEPARTMENT ALEGRIA 4/24/2023 92.67 SOCIAL CANTINA 10245-5510 TRAVEL FIRE ALEGRIA 4/24/2023 134.00 AVALON GAS STATION 10245-5600 FUEL FIRE ALEGRIA 4/24/2023 141.90 JW MARRIOTT - INDIANAPOLIS 10245-5510 LODGING FIRE ALEGRIA 4/24/2023 112.68 LONG BEACH MARCHE 10245-5510 TRAVEL FIRE ALEGRIA 4/25/2023 75.29 HOOTERS DOWTOWN INDIANAPOLIS 10245-5510 TRAVEL FIRE ALEGRIA 4/26/2023 13.08 INDIANA CONVENTION CENTER 10245-5510 TRAVEL FIRE ALEGRIA 4/26/2023 184.59 JW MARRIOTT - INDIANAPOLIS 10245-5510 TRAVEL FIRE ALEGRIA 4/26/2023 132.00 CLARION EVENTS 10245-5510 TRAINING FIRE ALEGRIA 4/27/2023 46.30 INDIANA CONVENTION CENTER 10245-5510 TRAVEL FIRE ALEGRIA 4/27/2023 90.71 GOODWOOD BREWING COMPANY 10245-5510 TRAVEL FIRE ALEGRIA 4/27/2023 14.50 JW MARRIOTT - INDIANAPOLIS 10245-5510 TRAVEL FIRE ALEGRIA 4/28/2023 6.54 IN DIANA CONVENTION CENTER 10245-5510 TRAVEL FIRE ALEGRIA 4/28/2023 22.53 JW MARRIOTT - INDIANAPOLIS 10245-5510 TRAVEL FIRE ALEGRIA 4/28/2023 120.00 PRO-TECH 10245-3545 SAFETY SUPPLIES FIRE ALEGRIA 4/28/2023 10.00 INDYTAXI 10245-5510 TRAVEL FIRE ALEGRIA 5/1/2023 62.77 IN DIANA CONVENTION CENTER 10245-5510 TRAVEL FIRE ALEGRIA 5/1/2023 63.40 LYFT 10245-5510 TRAVEL FIRE
ALEGRIA 5/1/2023 37.72 JW MARRIOTT - INDIANAPOLIS 10245-5510 TRAVEL FIRE ALEGRIA 5/1/2023 19.57 JW MARRIOTT - INDIANAPOLIS 10245-5510 TRAVEL FIRE ALEGRIA 5/1/2023 1,881.36 JW MARRIOTT - INDIANAPOLIS 10245-5510 TRAVEL FIRE ALEGRIA 5/1/2023 1,958.56 JW MARRIOTT - INDIANAPOLIS 10245-5510 TRAVEL FIRE ALEGRIA 5/1/2023 102.48 IN DIANA GROWN 10245-5510 TRAVEL FIRE ALEGRIA 5/8/2023 103.49 NFPA 10245-5505 MEMBERSHIP FIRE ALEGRIA 5/11/2023 162.14 VONS 10245-3625 HOUSE SUPPLIES FIRE ALEGRIA 5/12/2023 327.50 CATALINA EXPRESS 10245-5510 TRAVEL FIRE ALEGRIA 5/15/2023 14.09 CHICK-FIL-A 10245-5510 TRAVEL FIRE ALEGRIA 5/15/2023 250.54 DOUBLETREE HOTELS 10245-5510 LODGING FIRE $ 20,492.87 EFT PAID 05/22/2023

MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
June 6, 2023
City Attorney
Scott Campbell, City Attorney
AGENDA ITEM: ---- 3
CITY MANAGER: ~
Findings to Continue to Hold Remote TeleconferenceNirtual City Council Meetings Pursuant to Assembly Bill 361
RECOMMENDED ACTION(S): Reconsider the circumstances of COVID-19 state of emergency proclaimed by the Governor and COVID-19's continued impact and determine that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and as such, that continuing to utilize the protections of Assembly Bill 361 will protect the health and safely of attendees.

REPORT SUMMARY: Traditionally, the Brown Act allows for teleconference or virtual meetings, provided that the physical locations of the legislative body's members joining by teleconference are posted on the agenda, that those locations are open to the public and that a quorum of the members is located within its jurisdiction. AB 361 provides an exceptio~ to these procedures in order to allow for fully virtual meetings during proclaimed emergencies, including the COVID-19 pandemic.

Since March of 2020 and the issuance of Governor Newsom's Executive Order N-29-20, which suspended portions of the Brown Act relating to teleconferencing, the City Council has had virtual meetings without having to post the location of the legislative body members attending virtually.

Most public agencies have been holding public meetings using virtual platforms since this time.

In June of 2021, Governor Newsom issued Executive Order N-08-21, which provided that the exceptions contained in EO N-29-20 would sunset on September 30, 2021.

On September 10, 2021, the Legislature adopted AB 361, which allows public agencies to hold fully virtual meetings under certain circumstances without the posting of the agenda from each location a legislative body member is attending. Governor Newsom signed the bill into law on September 16, 2021 . Because it contained an urgency provision, it took immediate effect.

Specific Findings Required under AB 361
As the State of Emergency has ended, the City Council can continue to hold virtual meetings without providing notice of the City Council's teleconference location if the City Council makes the following two findings:

1. State or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and

2. The City Council reconsiders the circumstances of the state of the emergency and danger presented by COVID-19;
65059.00000\3452048 I. I
Having made the findings, the City Council can continue every 30 days to authorize meetings under AB 261 to protect the health or safety of attendees.

COVI D-19 continues to present a threat to the health or safety of members of the public. Although vaccines are now widely available, many people in the State and County are still not fully vaccinated and remain susceptible to infection. The disease can still spread rapidly through person-to-person contact and those in close proximity. According to the most recently published data, , 5.5% of those tested statewide for COVID-19 tested positive, an increase of 1.0% from the prior week. In Los Angeles County, there are 272 patients hospitalized with COVID-19 and an average of 4 deaths per day and hundreds of people are hospitalized with COVID-19.

Additionally, Cal/OHSA has implemented COVID-19 Prevention Non-Emergency Regulations that will remain in effect until February 3, 2025. The City's economy is dependent upon visitors to the island, the presence of which, increases the likelihood of transmission of the disease. Also, having members of the public attend council meetings at locations where council members are in attendance due to their desire to avoid exposure to COVI D-19 poses a risk to the health or safety of attendees.

Re-Authorization is Required Within 30 Days
The City Council made the required findings at its May 16, 2023 City Council meeting. Consistent with the provisions of AB 361, the new findings must be made every 30 days. Thus, if the City Council desires to continue to meet remotely without having to post the location of each teleconference location, the City Council reconsider the facts of the state of emergency and continued impact of COVID-19, find that state or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19, and therefore, that remote meetings under AB 361 should continue in order to protect the health or safety of attendees.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City Council will have to follow the Brown Act provisions that existed prior to the COVID-19 pandemic.

FOLLOW UP ACTION: That the City Council make the findings under AB 361 at its June 20, 2023 City Council meeting.

GOAL ALIGNMENT: NIA
FISCAL IMPACTS: None.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS.: None.
65059.00000\3452048 I. I
MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
June 6, 2023
Administration
Devin Hart, Management Analyst
AGENDA ITEM: -~---4
CITY MANAGER:of:

Cooperation Agreement for Continued Participation in the Los Angeles Urban County Community Development Block Grant
Program
RECOMMENDED ACTION($): Authorize the City Manager to execute the cooperation agreement with the Los Angeles County Development Authority for a three-year term beginning July1, 2023 - June 30, 2027.

REPORT SUMMARY: The City of Avalon receives Community Development Block Grant (CDBG) Funding annually through an agreement with The Los Angeles County Development Authority (LACDA). The funding amount is formula based on population. The City of Avalon's estimated allocation for FY 2023-2024 will be approximately $28,181.

Previous and ongoing projects utilizing CDBG Funds include the City-Wide ADA Ramp and Curb Projects (phased), the Beacon Hill Senior Apartment Chair Lift Project and partial funding of the City's Meals-on-Wheels and Congregate Meal Program.

GOAL ALIGNMENT: N/A
FISCAL IMPACTS: Addition of grant revenue over the term of the three year agreement.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will be unable to utilize CDBG Funds.

FOLLOW UP ACTION: Submit the signed agreement and resolution to the Los Angeles County Development Authority.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS:

1. Resolution

2. Cooperation Agreement
RESOLUTION NO. __ _

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVALON

APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PROGRAM WHEREAS, the City of Avalon ("City") desires to participate in the Los Angeles Urban County Program for Community Development Block Grant ("CDBG") funds, and if applicable, the HOME Investment Partnerships ("HOME") Program, and the Emergency Solutions Grant ("ESG") Program, in the County's Consolidated Plan for Fiscal Years 2024-2026, commencing on July 1, 2024 and through June 30, 2027; and
WHEREAS, the City authorizes the execution of a Cooperation Agreement with the County of Los Angeles in order to receive said CDBG funds;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AVALON AS FOLLOWS:

SECTION 1. The City Council adopts and approve its participation in the Los Angeles County Urban County Program and receiving CDBG funds, and if applicable, HOME and ESG Program funds, and execution of the Cooperation Agreement between the City of _ _____ and the County of Los Angeles for the time period of July 1, 2024 through June 30, 2027 and self-renewing thereafter.

SECTION 2. The City Council authorizes the Mayor, or his/her designee, to execute the Cooperation Agreement, any and all related documents necessary, for participation in the Los Angeles Urban County Program on behalf of the City.

PASSED, APPROVED, AND ADOPTED this 6th day of June 2023.

Ann H. Marshall, Mayor
ATTEST:

Gabrielle Morones, Deputy City Clerk

COUNTY OF LOS ANGELES

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM

HOME INVESTMENT PARTNERSHIPS PROGRAM

EMERGENCY SOLUTIONS GRANT PROGRAM

PARTICIPATING CITY

COOPERATION AGREEMENT
This COOPERATION AGREEMENT ("Agreement") is being entered into on this <<Day» day of «MONTH_ YEAR», to be effective on the I s1 day of July 2024, by and between the CITY OF «PARTICIPATING_ CITY», hereinafter referred to as "City," and the County of Los Angeles, by and through the Executive Director of the Los Angeles County Development Authority, hereinafter referred to as "County,' and shall remain in effect for the County's Consolidated Plan for Fiscal Years 2024-2026. The County and the City are collectively referred to as the " Parties" or individually "Party."
WITNESSETH THAT:

WHEREAS, in 1974, the U.S. Congress enacted and the President signed a law entitled, the Housing and Community Development Act of l 974, as amended, herein called the "Act"; WHEREAS, the Parties desire to cooperate to undertake, or assist in undertaking, community development, community renewal of lower-income housing assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderate-incomes, and other community or urban renewal activities authorized by the Act, the Cranston-Gonzalez National Affordable Housing Act ("NAHA"), and the U.S. Housing Act of 1937, as amended; WHEREAS, the Community Development Block Grant ("CDBG") Program, the HOME Investment Partnerships ("HOME") Program, and the Emergency Solutions Grant ("ESG") Program are required to have an approved comprehensive housing strategy as authorized under NAHA;
WHEREAS, the County has requested of the U.S. Department of Housing and Urban Development, hereinafter referred to as "HUD", that the County be designated as an urban county, hereinafter referred as to the "Los Angeles Urban County"; WHEREAS, the City has participated with the County in the Los Angeles Urban County Program and desires to renew its participation with the County in said Los Angeles Urban County Program for the County's Consolidated Plan for Fiscal Years 2024-2026; WHEREAS, as the Los Angeles Urban County designee, the County will take responsibility and assume all obligations of an applicant under federal statutes, including: the analysis of needs, the setting of objectives, the preparation of community development and housing assistance plans, the consolidated plan, and the assurances of certifications; May 2023
WHEREAS, the terms and provisions of this Agreement are fully authorized under state and local law, and this Agreement provides full legal authority for the County to undertake, or assist in undertaking, essential community development and housing assistance activities, specifically urban renewal and publicly assisted housing; and WHEREAS, by executing this Agreement, the Parties hereby give notice of the intention to paiticipate in the Los Angeles Urban County Program.

NOW, THEREFORE, the Patties agree as follows:

1. The City hereby authorizes the County to perform, or cause to be performed, those acts necessary or appropriate to implement the community development and housing assistance activities. Specifically urban renewal and pub! icly assisted housing, including, but not limited to, improvement or development of housing for persons of low- to moderate-income, and other community or urban renewal activities authorized under the Act for the City in the County's Consolidated Plan for Fiscal Years 2024-2026, which will be funded from the CDBG Program, and, where applicable HOME and ESG Programs, from federal annual appropriations and from any program income generated from the expenditure of such funds.

In the event this Agreement extends into succeeding fiscal years and funds have not been appropriated, this Agreement will automatically terminate as of June 30 of the then-current fiscal year. The County will endeavor to notify the City in writing within ten (10) days of receipt of non-appropriation notice.

2. This Agreement covers the following formula funding programs administered by HUD where the County is awarded and accepts funding directly from HUD: The CDBG Program, the HOME Program, and the ESG Program.

3. In executing this Agreement, the City understands the following:

May 2023
a. Jhe County has the final responsibility for selecting CDBG, and, where applicable, HOME and ESG, activities and submitting the Consolidated Plan to HUD.
b. The City is not eligible to apply for grants under the State CDBG ("Small Cities CDBG") Program for appropriations for the County's Consolidated Plan for Fiscal Years 2024-2026.
c. The City may participate in the HOME Program only through the Los Angeles Urban County Program. Thus, even if the County does not receive a HOME formula allocation, the City cannot form a HOME consortium with other local governments.
d. The City may paiticipate in the ESG Program only through the Los Angeles 2 Urban County Program.

4. The term of this Agreement shall be for the County's Consolidated Plan for Fiscal Years 2024-2026 and commence on July 1, 2024 through June 30, 2027 ("Urban County Term"). The Pa,ties agree that they cannot terminate or withdraw from this Agreement while it remains in effect. The City provides written notice at least 60 days prior to June 30 2026 that it elects not to participate in the next urban county qualification period. Towards the end of the second year of the Urban County Term, the County will notify the City in writing of its right not to participate in the County's successive Consolidated Plan for the next three-year period.

The Parties agree to adopt amend,nents to this Agreement incorporating changes necessary to meet the requirements for cooperation agreements set forth in HUD's Urban County Qualification for Participation Notice, prior to the subsequent threeyear extension of the term.

5. This Agreement shall be effective for the Urban County Term and for such period of time for the expenditure of all CDBG funds, or where applicable, HOME and ESG funds, allocated to the City under this Agreement and appropriations from any program income therefrom and for the completion of the funded activities. The Pa1ties agree that they cannot terminate or withdraw from this Agreement while it remains in effect.

6. The Paities agree to cooperate to undertake, or assist in unde1taking, community renewal and lower-income hs)Using assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderate-incomes, and other community or urban renewal activities authorized by the Act.

May 2023
The Parties in the performance of this Agreement shall take all actions necessary or appropriate to assure compliance with the Los Angeles Urban County Program's certification under Section I 04(b) of Title I of the Act, as amended, that the grant will be conducted and administered in conformity with Title YI of the Civil Rights Act of 1964; and the implementing regulations at 24 CFR Part I, and the Fair Housing Act, and the implementing regulations at 24 CFR Part I 00, and wi II affirmatively further fair housing. See 24 CFR § 9 I .225(a) and Affirmatively Furthering Fair Housing Definitions and Ce1tifications (86 FR 30779, June I 0, 2021 ), to be codified at 24 CFR 5.151 and 5.152, available at https://www.federalregister.gov/documents/2021 /06/ I 0/2021-121 14/restoringaffi rmati vel y-fwtheri ng-fa i r-hous in g-defi n i tion s-and-certi fications.

Furthermore, the Parties in the performance of this Agreement shall take all actions necessary or appropriate to assure compliance with Section I 09 of Title I of the Act, and the implementing regulations at 24 CFR Patt 6, which incorporates Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR Pait 8, Title II of the Americans with Disabilities Act, and the implementing 3 7.

8. 9.

I 0.

11. 12.

13. May 2023
regulations at 28 CFR Pait 35, the Age Discrimination Act of 1975, and the implementing regulation at 24 CFR Part 146, and Section 3 of the Housing and Urban Development Act of 1968, and all other applicable laws and regulations.

The Patties agree that CDBG and, where applicable, HOME and ESG funding is prohibited for any activities in, or in support at: any cooperating City that does not affirmatively fu1ther fair housing within its own jurisdiction or that impedes the County's action to comply with its fair housing certification. The City acknowledges and agrees to HU D's 424-B Form, Assurances and Certifications.

Pursuant to 24 CFR § 570.501 (b ), the City is subject to all requirements applicable to subrecipients, including the requirement of a written agreement as set forth in 24 CFR § 570.503.

The City shall report to the County of any income generated by the use of CDBG and, where applicable, HOME and ESG funds received by the City. Any such program income, if applicable, must be remitted to the County within 30 days of receipt. Such program income may be used for eligible activities in accordance with all CDBG and, where applicable, HOME and ESG, requirements as may then apply.

The County shall be responsible for monitoring and reporting to HUD on the use ofany program income; therefore, the City shall be required to maintain appropriate record keeping and reporting for this purpose.

The City may not sell, trade or otherwise transfer all or any portion of CDBG, and, where applicable, HOME and ESG funds to another metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG, and, where applicable, HOME and ESG funds in exchange for any other funds, credits or non-federal consideration, but must use such funds for activities eligible under Title I of the Act.

In the event of grant close-out or termination of this Agreement, any program income that is on hand or received subsequent to the close-out or change in status shall be paid to the County within 60 days after grant closeout or termination of this Agreement.

All program income generated from the disposition or transfer of real prope1ty acquired or improved by the City using CDBG and, where applicable, HOME and ESG, funds or program income, during the Urban County Term, shall be subject to all the terms and conditions of this Agreement.

Any real property which is acquired or improved by the City during the term of this Agreement, in whole or in patt, using CDBG and/or HOME and ESG funds or program income in excess of $25,000, shall be subject to the following standards:
4 a. The County shall be notified by the City in writing of any modification or change in the use or disposition of such real prope1ty from that planned at the time of the acquisition or improvement. Such notification shall be made prior to the modification, change in use or disposition. b. If such real property is sold within five (5) years or transferred for a use which does not qualify as an eligible activity under CDBG and/or HOME and ESG regulations, the City shal I reimburse to the County an amount equal to the pro-rata share of the current fair market value of the property or proceeds from the sales. The pro-rata share shall be calculated by multiplying the current market value by the percentage of the purchase price paid with CDBG funds or program income.

14. The City shall make available for inspection and audit to County's and HUD's representatives, upon request, at any time during the duration of this Agreement . and for a period of five (5) years thereafter, all of its books and records relating to CDBG and, where applicable, HOME and ESG, program activities and income.

15. Following the end of the three-year reimbursable contract period and after resolving any financial or programmatic findings, if the City elects to leave the Los Angeles Urban County Program and is not eligible to become an entitlement city, the City will be unable to request that its allocation or any remaining balance be transferred to the City. Any remaining balance will be transferred to the funding pool of the Supervisorial District in which the City is located.

16. The City has adopted and is enforcing:
a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and
b. A policy of enforcing applicable state and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.

17. The City shall provide a drug-free workplace by:

May 2023
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the City's workplace and specifying the actions that will be taken against employees for violation of such prohibition. b. Establishing an ongoing drug-free awareness program to inform employees about:

I. The dangers of drug abuse in the workplace;
5 May 2023
ii. The City's policy of maintaining a drug-free workplace; iii. Any available drug counseling, rehabilitation, and employee assistance programs; and
1v. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace.
c. Making it a requirement that each employee who will be engaged in the performance of the grant be given a copy of the statement required by paragraph "a" of this Section 17.
d. Notifying the employee in the statement required by paragraph "a" of this Section 17 that, as a condition of employment funded by the CDBG, and where applicable, HOME and ESG grant, the employee will:

1. Abide by the terms of the statement; and

11. Notify the City in writing of his or her conviction of a violation of a criminal drug statute occurring in the workplace no later than five (5) calendar days after such conviction.
e. Notifying the County in writing, within ten ( I 0) calendar days after receiving notice under subparagraph d(ii) of this Section 17 from an employee or otherwise receiving actual notice of any such conviction; and the City must provide written notice, including position or title, of any City employees convicted of any criminal drug statute to every County officer or other designee who processed a CDBG, HOME, or ESG grant which funded any activity on which the convicted employee was working, unless HUD has designated an identification number(s) of each affected grant. f. Taking one (1) of the following actions, within 30 calendar days of receiving notice under subparagraph d(ii) of this Section 17, with respect to any employee who is so convicted:
g.
i. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or

11. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purpose by a federal, state, local health, law enforcement, or other appropriate agency.

Making a good faith effort to continue to maintain a drug-free workplace through the implementation of paragraphs a, b, c, d, e, and f, of this Section

17. 6
May 2023

18. This Agreement may be executed in any number of counterparts, each of which shall be effective only upon delivery, and therefore shall be deemed an original, and all of which shall constitute one and the same document, for the same effect as if all parties hereto had signed the same signature page.

The facsimile, email, or other electronically delivered signature of the Patties shall be deemed to constitute original signatures, and facsimile or electronic copies hereof shall be deemed to constitute duplicate originals. 7 IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this Agreement to be subscribed by the Executive Director of the LACDA, and the City has subscribed the same through its duly authorized officers, on the day, month, and year first above written.

County Counsel Certification
The office of the County Counsel hereby ce1tifies that the terms and provisions of this Agreement are fully authorized under state and local laws, and that the Agreement provides full legal authority for the County to unde1take or assist in undettaking essential community development and housing assistance activities, specifically urban renewal and public assisted housing.

By:

Principal Deputy County Counsel

COUNTY OF LOS ANGELES
By: -------------- EMILIO SALAS, Executive Director
Los Angeles County Development Authority
ATTEST:

City Clerk
By: --------------
APPROVED AS TO FORM:

DA WYN R. HARRISON
County Counsel
By:

BEHNAZ TASHAKORJAN
Principal Deputy County Counsel
Date
CITY OF «PARTICIPATING CITY»
By:

MAYOR OR DESIGNEE
APPROVED AS TO FORM:

By:

CITY ATTORNEY
MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
June 6, 2023
Public Works
AGENDA ITEM: 5
CITY MANAGER: ·?Sf
Jamie Hmielak, Maintenance Superintendent
Resolution Adopting List of Projects for Annual SB1 Allocation RECOMMENDED ACTION(S): Adopt a resolution adopting a project for Fiscal Year 2023-24 funded by SB1: The Road Repair and Accountability Act of 2017.

REPORT SUMMARY: In 201 7 Senate Bill 1 (SB1) was enacted, and provided new funding to address basic road maintenance, rehabilitation and critical safety needs of local streets and roads in addition for other transportation needs in the state.

One of the requirements of the program is that each agency must adopt a list of projects for their annual formula allocation that is submitted to the California Transportation Commission.

The City's estimated allocation for the upcoming Fiscal Year 2023-24 is $83,454. Staff identified the Five Corners Complete Street Project, known as the City of Avalon Five Corner Comprehensive Pedestrian Project as the project that would provide the greatest benefit for the community with the upcoming fiscal year allocation. This determination was based on the City's need to provide matching funds to the existing grant funds.

GOAL ALIGNMENT: N/A
FISCAL IMPACTS: The addition of $83,454 to Account No.10575-6547.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City would not receive allocations of SB1 funds.

FOLLOW UP ACTION: Submit the approved project list and resolution to the California Transportation Commission through the CalSMART system by July 1, 2023.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.

ATTACHMENTS:
1 . Resolution

2. LSR Estimate for the City of Avalon
RESOLUTION NO. ___ _

RESOLUTION OF THE CITY OF AVALON CITY COUNCIL
ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-24
FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of Avalon are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Avalon must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and WHEREAS, the City of Avalon, will receive an estimated $83,454 in RMRA funding in Fiscal Year 2023-24 from SB 1; and
WHEREAS, this is the 7th year in which the City of Avalon is receiving SB 1 funding and will enable the City of Avalon to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City of Avalon has undergone a robust public process to ensure public input into our community's transRortation priorities/the project list; and WHEREAS, the City of Avalon used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City of Avalon maintain and rehabilitate the Five Corner intersection, at Avalon Canyon Road and Tremont Street as part of the comprehensive pedestrian active transportation plan project in the City of Avalon this year, and similar projects into the future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City of Avalon streets and roads are in an at risk condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into excellent condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the Council of the City of Avalon, as follows:

1. The foregoing recitals are true and correct.

2. The following previously proposed and adopted project may utilize Fiscal Year 2023-24 Road Maintenance and Rehabilitation Account revenues in their delivery. With the relisting of this project in the adopted fiscal year resolution, the City of Avalon is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:

Project Title: Five Corner Comprehensive Pedestrian Project Project Description: Project development components including engineering, environmental and right of way, as well as preliminary construction.

Project Location: Intersection of Tremont Street, Avalon Canyon Road, Country Club Road and Sumner Avenue roadways
Estimated Project Schedule: Project to start Fall of 2023 and to be completed by end of 2024.

Estimated Project Useful Life: 20 years
PASSED AND ADOPTED by the Council of the City of Avalon, State of California this 6th day of June, 2023, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Ann H. Marshall, Mayor
Gabrielle Morones, Deputy City Clerk/Sr. Admin. Assistant Local Streets and Roads - Projected Revenues
Based on State Dept of Finance statewidet-rr,---"TT"C--,--...----,-.---,=------:--:=-=--c---.----=-~-~ 2023-24 Estimated May 2023 Road Mntnc TOTAL ru.:7:'Tn-=::-:::-"'l"-:::-:-r--:R==-o-a--:d--:M-:-n-:-tn-c--.-----:T=o=T=-=A,...,..L--.

Account Rehab Acct Account Rehab Acct
LOS ANGELES COUNTY ·---------------------------------- ------------------------------------ AGOURA HtLLs 500,571 431 ,371 . -931~94T --·--····-·-··-g4if1j"i'-··-··· ........ _49ff,"399-·-········ .... 1 .. :-o3ff53fr ALHAMBRA 2,015,737 1,760,954 3,776,691 2,209,910 2,001,916 4,21 .. 1°'826·- -~~!{f :=========================== :.:j;:;~ :===::::ii:~~i==== ::!~:Ii~-• ==== : :~~:m:===<!ii:~~i-:=== ::~ii!;!: BALDWIN PARK 1,759,681 1,535,890 3,295,571 1,929,038 1,746,054 . 3,675,092 .. .. :~ttFLOWER .... _ ............ -........ ·-···--·- .. · ..·-·--·-·-............ . _ .. _ ..................... 1.,:~::;;! .... _ ......... 1,;!; :;;;·-·---· ~::~::1:~ ... --.. ·-· · 2, ~~·~:·~~~ ............... 1.,:~; :;:~ -.............. ::~~~::~:.~ BELL GARDENS 966,638 840,149 1,806,787 1,059,277 955,112 2,014;389 .. . i;i~~~~ILLS ----------------------2.:~rn~ ----2.:!im----::::rn~ -----2.:ii:;!~ ----Ji:m----:::m~r CALABASAS 573,176 495,188 1,068,364 627,778 562,948 1,190,726 . i~ii~E00---------------- ---------::;irn~-----::;irni----~:~!rn! -· ----~:~mg _____ ::;~rn~ ------;:!~i:m GLENDORA 1,285,570 1,119,161 2,404,731 1,408,975 1,272,303 2,681 ,278 HAWAIIAN GARDENS 346,087 297,343 643,431 378,874 338,030 716,905 HAWTHORNE 2,146,711 1,876,076 4,022,787 2,353,579 2,132,790 4,486,369 HERMOSA BEACH 486,913 420,245 907,158 533,252 477,750 1,011,001 HIDDEN HILLS 47,946 37,045 84,992 52,031 42,114 94,146
HUNTINGTON PARK 1,339,259 1,166,353 2,505,612 1,467,868 1,325,952 2,793,820 INDUSTRY _ ................. -... ···-.. -····-··· ..·--·--·· ... · .. ·-·-·-·-······· .. ····-········16,421 ................... _ ........ 9,336 .... __ ..... -.......... 25, 757 .... _ .............. -........ 17,451. ................ _._ .. _ ... 10,61.3 ....................... 28,064 ...

May 2023 Califon,.iaCityFi"'a"'ce.coM

MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
June 6, 2023
Finance
Matthew Baker, Finance Director
. AGENDA ITEM: _Co __
CITY MANAGER: 1)'f:

Fiscal Year 2023-2024 Miscellaneous Fee Schedule
RECOMMENDED ACTION($): 1. Hear a presentation regarding the Miscellaneous Fee Schedule. 2. Open the Public Hearing to hear public comments. 3. Close the Public Hearing. 4.

If consensus, adopt the fee schedule as proposed.

REPORT SUMMARY: The City charges fees for miscellaneous public services, use of City facilities and ·equipment rental and other activities. User fees are assessed and collected for City services and programs provided by various departments. These are services that convey a benefit, grant a privilege, provide for review and enforcement of regulatory activities, enforce laws, or are a condition of development. Under State law, cities may charge fees to recoup the direct and indirect costs related to the provision of user services.

Each year, the City reviews its fees to establish new fees, modify existing fees, and eliminate fees that are no longer required to ensure that City fees are in-line with the costs incurred to provide them. The City made a number of edits to the prior year's fee schedule to better organize the grouping of fees. For example, the rental of City Hall Council Chambers has been moved from the Administration section to the Facility Rentals section of the document and a new section· was created for vehicle-related fees.

In Fiscal Year 2022-2023, City Council approved a 5.07% increase for the majority of fees, with the exception of transit and certain recreation fees. The percentage increase was based on the consumer price index (CPI) information provided by the Bureau of Labor Statistics for Los Angeles County based on the latest available fiscal year information. Using the CPI as an average cost increase annually ensures the city does not unnecessarily burden the citizens with unusually large spikes in fees while also ensuring that the City continues to recoup costs associated with the increased costs to provide these services.

For Fiscal Year 2023-2024, Staff recommends increasing the majority of fees based on the latest available calendar year consumer price index (CPI) _information provided by the Bureau of Labor Statistics for Los Angeles County which shows an increase of 3.82% based for the twelve months ending April 2023, with the fees rounded to the nearest dollar.

As part of its review process, the City elected to not increase certain fees related to recreation and transit, with those services to be subsidized with general tax revenues. The City also reduced its annual dog license fee to encourage greater participation in the program. In addition, the City changed its tiered discount for facility rentals from a five-tiered system to a three-tiered system to simplify the discount process for members of the public and Staff, as summarized below:
• Group 1 = City of Avalon sponsored or co-sponsored event or program; No rental fee • Group 2 = Resident private use, not-for-profit organizations, and governmental agencies eligible for fee discount
• Group 3 = Non-resident private use and commercial use not eligible for discount Lastly, Staff has identified several fees which did not fully capture the cost for providing these services and increased the fee by more than CPI, including the film license application fee, which increased from $27 to $150 per application, the various vehicle renewal fees, which increased from $37 to $50 per vehicle.

The proposed fee schedule has been available for public review and inspection for at least 10 days.

GOAL ALIGNMENT: City costs will be offset by annual revenues.

FISCAL IMPACTS: Staff estimates that the new City fees, if adopted as proposed, should generate approximately $120,000 in the General Fund and $100,000 in Harbor Fund revenues.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The costs of special services will not be fully funded through fees paid by the users of those services. The unfunded portion of user services would then be subsidized by° general tax revenues and/or available fund balances.

FOLLOW UP ACTION: Adopt the attached resolution establishing city rates and fees for services.

ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.

ATTACHMENTS:
• Resolution
• Exhibit A - Proposed Miscellaneous Fee Schedule FY23-24 RESOLUTION NO. __ _

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF AVALON SETTING FEES FOR SERVICES, FACILITIES
AND ACTIVITIES OF THE CITY OF AVALON FOR FISCAL YEAR 2023-24 WHEREAS, Pursuant to a Public Hearing held on June 6, 2023, the City Council considered the recommendations of staff regarding the appropriate fees for permits, approvals, services, activities and other user services; and
WHEREAS, state law allows cities and other local government agencies to recoup the full cost of user services; and
WHEREAS, most city fees were previously adjusted effective July 1, 2023; and WHEREAS, the Avalon Municipal Code provides that all of the fees, charges and costs listed in "Exhibit A" attached hereto and incorporated by this reference shall be set by resolution of the City Council; and
WHEREAS, the fees, charges and costs listed in "Exhibit A" have been available for public inspection for at least 10 days;
NOW, THEREFORE, the City Council of the City of Avalon, State of California, does determine, find and resolve as follows:

Section 1: The City Council hereby finds that the fees set forth in "Exhibit A" Miscellaneous Fee Schedule Fiscal Year 2023-24 represent a reasonable estimate of the cost of providing the services, activities and/or facilities for which fees are charged.

Section 2: The City Council hereby adopts the fees for City services, activities and/or facilities as set forth in "Exhibit A" attached hereto and made a part hereof, which shall be effective July 1, 2023.

PASSED, APPROVED AND ADOPTED by the City of Avalon, State of California this 6th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

Ann H. Marshall, Mayor
Gabrielle Morones, Deputy City Clerk

MISCELLANEOUS FEE

SCHEDULE
FY2023-24
Proposed June 6, 2023
Table of Contents
Section Department Page
I General Administration 1
II Code Enforcement 2
Ill Vehicles 3
IV Cemetery 4
V Fire 5
VI Harbor 6
VII Community Services 8
VIII Facility Rentals 9
IX Use of Manpower and Equipment 10
X Transit 11
XI Planning 12
XII Public Works 17

CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE
SECTION I • GENERAL ADMINISTRATION
Administrative Permits
Amplified Music Application
Noise Ordinance Variance
Outdoor Dining (October - April)
Outdoor Dining (May - September)
Bicycle License/ Replacement
Legal and Professional Fees
Late Payment Fee (unless stated elsewhere)
Late Payment Interest on Past Due Balance
Transportation Permit
Transportation Permit Renewal
Encroachment Permit
Newspaper Rack Permit
Appeal to Hearing Officer
Appeal to City Council
FIim Location Permits
Application Fee
Ten or fewer employees
More than ten employees
Still Photography Permit
Business License Program Collection Fee
TOTAL Business License Collection Fee
UNIT
Each
Each
Per Day
Per Month
Each
Each
Monthly
Each
Each
Each
Each
Each
Each
Each
Each
Each
Day
Each
FY23 FY24
Proposed
283 283
283 283
80 80
1600 2400
15 15
Cost+ 20% Cost+20%
10% (min $25) 10% (min $25)

0.50% 0.50%
262 272
75 75
262 272
262 272
262 272
438 455
27 150
254 264
340 353
118 123
41 41
Bus. License. Collection Fee is set by resolution. Sec. 3-1.112 of the Municipal Code and is the fee for processing the Business License Tax
Per SB 1186 $1 ($4 through 12/31/2023) for Division of State Each Architect (DSA) for Certified Access Specialist
4 4
Business License Tax is on pg 3.109 Sec. 3-1.202 of the Municipal Code and can only be changed by an ordinance Returned Check
Returned Check Each 29 30
Each Returned Check after first offense Each 40 40
Other Fees
Copy Fee Each 0.12 0.12
Lamination Fee Each 2 2
Commuter Card Replacement Each 13 13

CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION II - CODE ENFORCEMENT
Animal Control
Animal Control
Animal Round Up
Animal Boarding
Dog License - Annual
Altered
Unaltered
Duplicate Tag
Fats, Olis and Grease (FOG) Program
Fats, Oils and Grease Permit Fee
Inspection Fee
Re-Inspection Fee
Replacement FOG Binder
Replacement Best Management Practice Poster
Fines
Vehicle Impound
Outdoor Restaurant Review
Bicycle-Daily Storage
Noise Violation (First Offense)
Noise Violation (Second Offense)
Noise Violation (Third Offense)
Fix It Ticket
Obedience to Traffic Device
Parking on Private Property
Loading Zone
Curb Marking
Commercial Overnight Parking
Fire Lane
Fire Hydrant
18" from Curb
Disabled Parking
UNIT
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Daily
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
FY 23 FY24
Proposed
27 30
43 50
43 45
34 10
68 35
1 1
390 405
113 117
171 178
61 63
19 20
185 192
262 272
2 5
0 0
500 500
1000 1000
27 28
51 53
51 53
51 53
51 53
88 98
88 98
88 98
51 53
448 465
2 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE
SECTION Ill • VEHICLES
Vehicle Permits
Residential Autoette
Residential Vehicle
Commercial Autoette App. (Hearing)
First Hearing
Autoette Renewal
Commercial Vehicle App.(Hearlng)
First Hearing
Vehicle Renewal
Non Emergent Public Service Permit
Oversized Autoetto App.(Hearlng)
First Hearing
Autoette Renewal
Oversized Vehicle App.(Hearlng)
First Hearing
Vehicle Renewal
On Service Call Placard (Annual Permit)
Interior Vehicle
Duplicate Hearing Notice
Hearing Officer Appeal
City Council Appeal
Daily Temporary Permit
Monthly Temporary Permit
Permit Late Fee
UNIT FY 23
FY 24
Proposed
Each 37 50
Each 37 50
Each 76 79
Each 37 50
Each 76 79
Each 37 50
Each 37 50
Each 76 79
Each 37 50
Each 76 79
Each 37 50
Each 23 24
Each 37 50
Each 85 88
Each 263 273
Each 439 456
Each 34 35
Each 352 365
Each 30 31
3 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION IV - CEMETERY
Sing le Ground Burial
Plot
Maintenance
Open/Close Grave
Vault
Ground Memorial
lincludino Processina Fee)
Marker Placement
Ground Vase
Double Ground Burial
Plot-Double Deep
Maintenance
Vault
Ground Memorial
lincludina Processing Fee)
Name Scrolls for Ground Memorial
lincludina Processing Fee)
Date Scroll for Ground Memorial
llncludina Processing Fee\
Marker Placement
Burial of Cremated Remains
1/2 Plot
Maintenance-LIFETIME
Open/Close Grave
Ground Memorial
(includina Processina Fee)
Marker Placement
Cremated Remains In Niche Wall
Niche
Placement of Remains in Niche
Small Niche Vase
Single Niche Plaque
llncludina Processing Fee)
Double Niche Plaque
(includina Processino Fee)
Installation of Plaque
Scroll for Companion Plaque
(includino Processino Fee)
Memorial for Cremated (Scattered) Remains
Memorial Wall Reservation
Memorial Wall Plaque
lincludina Processing Fee)
Installation of Plaque
Small Burial Vault
UNIT
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
FY 23 FY 24
Proposed
1,191 1,237
216 224
868 901
956 993
Cost+10% Cost+10%
198 206
19 20
1,728 1,794
437 454
956 993
Cost+10% Cost+10%
(w/ $800 Deoosit (w/ $BOO Deoosit
Cost+10% Cost+10%
Cost+10% Cost+10%
198 206
595 618
113 117
267 277
Cost+10% Cost+10%
lw/ $800 Deoosit (wl $600 Deoosit'
198 206
650 675
83 86
Cost Cost
10% of Cost 10% of Cost
10% of Cost 10% of Cost
77 80
10% of Cost 10% of Cost
214 222
Cost+10% Cost+10%
77 80
184 191
4 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION V- FIRE UNIT
'Per LA County Emergency Medical Services Agency Rate Schedule Ambulance Service (ALS) Non Emergency Each
Ambulance Service (ALS) Emergency Each
Ambulance Service (BLS) Non Emergency Each
Ambulance Service (BLS) Emergency Each
Mileage Rate Per Mile
Oxygen Service Each
Copy of Report Fire/Ambulance Each
False Alann
1st
2nd
3rd
Weed Abatement
Weed Abatement (including Processing Fee) Each
Plan Check
Hoods Per Plan Check
Sprinkler Per Plan Check
Alarm Per Plan Check
Fire Per Plan Check
Occupancy Calculation Per Plan Check
. Hydrant Flow Check Per Plan Check
Automatic Dialer Alarm System
Signup Each
Renewal Each
Hazardous Material Clean Up
Hazardous Material Clean Up Each
(includina Processina Feel
Hazardous Inspections Each
Low Each
Ordinary Each
High Each
Special Each
Reinspection Each
FY 23 FY 24
Proposed
2,532 2,532
2,710 2,710
1,687 1,687
1,809 1,809
23 23
108 108
44 44
None None
43 45
172 179
Cost+ 20% Cost+20o/o
597 620
597 620
597 620
296 307
150 156
139 144
214 222
310 322
Cost+ 20% Cost+ 20%
147 153
147 153
147 153
289 300
289 300
289 300
5 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE
SECTION VI • HARBOR
Credit Card Processing Fee
Hoist
Harbor Spills (incuding Processing Fee)
Harbor Discharge Appeal
Towing Fee
Waterside Application Fee
Waterside Application Deposit
1st Installment
2nd Installment
Haul Out Fee
Storage Fee - Per Week
Mooring Service Charge (Mooring Use • Nightly Rate)
Dinghy Dock
30' and under
31 ' to 39'
40' to 49'
50' to 59'
60' to 69'
70' to 79'
80' to 89'
90' to 99'
100' or more
Special Spring/Fall rate:

Spring - Palm Sunday thru June 15th
Fall - Seot 15th thru Oct 14th
Spec la I Winter rate:

October 15th thru Palm Sunday
Mooring Service Charge - Hospital Measure H
UNIT
Each
Each
Each
Each
Each
Each
Due 4/1
Due 8/1
Per week
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Nights
Nights
Daily
Mooring Service Charge (Mooring Use 4 Hour Rate= 1/2 of Dally Rate) 30' and under Each
31' to 39' Each
40' to 49' Each
50' to 59' Each
60' to69' Each
70' to 79' Each
80' to 89' Each
90' to 99' Each
100' or more Each
FY 23
FY 24
Proposed

3.99% 3.99%
33 34
Cost+ 20% Cost+ 20%
462 480
86 89
275 286
500 500
500 500
75 78
33 34
Free Free
44 46
48 50
61 63
74 77
97 101
120 125
134 139
160 166
180 187
Pay 4 nights consecutive Pay 4 nights consecutive
and gel the next 3 freE and get the next 3 free
Pay 2 nights consecutive Pay 2 nights consecutive
and getthe next 5 freE and getthe next 5 free
1 1
22 23
24 25
31 32
37 39
49 51
60 63
67 70
80 83
90 94
6 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION VI - HARBOR
Annual Lease Fees
30'
40' & 45'
50'
60' and above
Annual Mooring Permit (cost/tumonth)
Plus maintenance, chain and taxes
Water Dock Coin Operation for Fresh Water
Harbor Use Fees and Wharfage
Harbor Businesses
Fishing Tournament, Per Boat
(Charitable Exemption)
Wharfage - Cross Channel Carriers
Wharfage - Cruise Ships (100% of landed passengers)
Wharf age - Hospital Measure H
(Increases to $2.00 effective April 1, 2024)
Shoreboat Fee
UNIT
Annually
Annually
Annually
Annually
Annually
Per Passenger
Each Way
Per Passenger
Per Passenger
Arriving
Per Passenger
FY 23
FY24
Proposed
1,581 1,641
2,115 2,196
3,171 3,292
3,805 3,950

1.05 1.09
Cost Cost
7% gross receipts 7% gross receipts
4% gross receipts 4% gross receipts

3.00 3.00

5.00 5.00

1.00 2.00
N/A 7.00
7 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE
SECTION VII • COMMUNITY SERVICES
Sports Programs
T-Ball
Basketball (Youth)
Flag Football (Youth)
Swimming Lessons (Youth)
Soccer (Youth)
Day Camp (Weekly) Summer 2024
Day Camp (Daily) Summer 2024
Basketball (adult)
Flag Football (Adult)
Volleyball (Adult)
Soccer (Adult)
Recreation Registration Lale Fee
Festival Booth
Non-Profit Orgnization (without food preperalion)
Non-Profit Orgnization (with food preperation)
All Other
Kayak and Stand Up Board Rack Rental
Six Month
Annual
Permit Appllcatlons
Street Performer
Sidewalk Vendor
Advertising (Vons Dlgltal Sign Board)
Two-week Post
Annual Post
Other Recreation Programs
Contract Recreational Programs
Other Eoutoment Rental
Field lighting (two hour minimum)
Chair Rental (min. 25 chairs)
Table Rental (min. 5 tables)
Chair and Table Refundable Deposit
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Hourly
Each
Each
Each
FY23 FY24
Proposed
34 35
41 35
41 35
8/class 8/class
41 35
76 80
19 20
39 35
39 35
39 35
85 35
COST + 20% COST+ 20%
40 40
58 60
86 90
113 100
170 170
33 35
33 35
11 11
70 73
30% Total Fees Contracted Rate Collected from classes
40 40
2 2
10 10
200 250
8 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE
SECTION VIII· CITY FACILITY RENTALS
Group Designations for Facllty Rentals (New Tiers FY24):

Tiered rates to provide discount rates for resident and non-profit organizations.

Group 1: City of Avalon sponsored or co-sponsored event or program Group 2: Resident private use; not-for-profit organizations; governmental agencies Group 3: Non-resident private use; commercial use
Full Day Four (4) hours or more
Half Day Up to four (4) hours
Insurance Requirements
The City requires facility renters to obtain liability insurance naming the City of Avalon as additional Insured as the property owner/lessor.

The renter must obtain this on their own. The City of Avalon will assist in this process by providing a step-by-step guide on how to obtain the required Insurance, which will include a list of affordable insurance agencies meeting our requirements.

Facilities Damage & Cleaning Deposit
Council Chambers 250
City Hall Conference Room 250
Tremont Hall 300
Joe Machado Field 500
FY 24 Proposed
Use of Facllltles Group 1 Group2 Group 3
City Hall Council Chambers
Full Day 0 75 300
Half Day 0 40 160
City Hall Conference Room
Full Day 0 75 300
Half Day 0 40 160
City Park, Knabe Park, Kids Park
Full Day 0 30 85
Basketball Court, Volleyball Court
Two (2) Hour Maximum 0 30 85
Skate Park
Full Day 0 30 85
Wrigley Stage
Full Day 0 30 75
Street Banners
General (Six Weeks) 0 50 200
Tremont Hall
Full Day 0 125 300
Half Day 0 80 160
Joe Machado Field
Full Day 0 250 350
Half Day 0 140 200
Resident Recreation League 0 47 47
Joe Machado Field (Courtyard Only)
Full Day 0 125 175
Half Day 0 70 12t
9 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE
SECTION IX • USE OF MANPOWER AND EQUIPMENT UNIT FY23
FY 24
Proposed
The rates are used by staff to create a composite rate for a specific service such as sewer lateral repair. The City charges the same equipment rental rates that are specified in the California State Transportation Agency (Caltrans). https://dot.ca.gov/programs/construction/equipment-rental-rates-and-labor-surcharge In cases where a piece of equipment is not in the Caltrans book, the rate specified in the User Fee Schedule will be used. Equipment is not available for rent or personal use. These charaes are modified for Community Groups and are shown below.

Public Safety
Firefighter/Engineer Hourly 72 75
Harbor Patrol Officer" Hourly 72 75
Sheriff Deputy•• Hourly Cost+20% Cost+20%
Public Works
Lead Worker Hourly 55 57
Maintenance Worker Ill Hourly 46 48
Maintenance Worker II Hourly 40 42
Maintenance Worker I Hourly 35 36
Other Personnel Hourly 1.5 x hourly rate 1.5 x hourly rate Overtime Hourly 1.5 x hourly rate 1.5 x hourly rate
Call Out (2 Hour Minimum) Hourly 1.5 x hourly rate 1.5 x hourly rate Equipment
Sidewalk Street Sweeper Machine Hourly 44 46
Waste Water Contracted Worker Hourly Cost+20% Cost+20%
Ambulance Hourly 34 35
Dump Truck Hourly 34 35
Fire Engine Hourly 45 47
Harbor Patrol Boat Hourly 34 35
Pick-Up Truck Hourly 15 33
Rescue Boat Hourly 45 47
Street Sweeper/ Trash Truck Hourly 34 35
Other Equipment Hourly 1.5 x hourly rate 35
Sewer Cleaning & Inspections
Four (4) hour minimums required for work
Vactor Truck Hourly 130 135
Robotic CCTV Hourly 76 79
Video Pipe Camera Hourly 34 35
City Pick Up Truck Hourly 32 33
Towable Pressure Washer; Jetter Hourly 30 31
Jetting Program • (Private Lateral Maintenance)
169
Consists of 1 X Truck Consists of Lead,
Scheduled Annual Service Hourly $49hr/ 2x (90pp/hr.)Maln Maintenance 3 3 worker $180/ Jetter Operators (105/hr.),
$23/ HRw ~100ft. Jetter (31/hr.) and Truck
(33/hr)
"Public safety costs for events that contribute more than 40% of net proceeds, but not less than $5,000, to local charities shall be waived 10 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION X - AVALON TRANSIT

FIXED ROUTE TRANSIT
General Public Per Ride
General Public Per Pass
General Public Per Pass
General Public Per Pass
Children Under 6 with Paying Passenger
Limited to a maximum of 2 children per paying passenger ACCESS
ADA Eligible Individual Per Ride
ADA Eligible Individual's Personal Care Attendant
ADA Eligible Individual's Companion(s)
Children under 6 years with an ADA Eligible Individual
(Limited to a max of 2 children per paying passenger

DIAL-A-RIDE
Eligible Resident, Senior, or Disabled Individual Per Ride Eligible Individual Ride to Hamilton Cove
Children under 6 years with an Eligible Individual
Limited to a maximum of 2 children per paying passenger

CHARTER
UNIT
Per Ride
Day
Week
Month
Per Ride
Per Ride
Per Ride
Per Ride
Per Ride
Per Ride
Per Ride
Per Ride
FY 23
FY 24
Proposed
2 2
5 5
24 20
58 40

FREE FREE
2 2

FREE FREE
2 2

FREE FREE
2 2
4 4

FREE FREE
Cost+ 20% Cost+20%
11 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE
SECTION XI • PLANNING
Public Noticing
Tentative Parcel Map
Tentative Tract Map
Final Tract Map
Final Tract Map Deposit
Final Tract Map - Engineer Review
lincludlno Processina Feel
Final Parcel Map Deposit
Final Parcel Map
Clncludina Processina Feel
Final Parcel Map - Engineer Review
lincludino Processina Fee)
Lot Line Adjustment
Conditional Use Permit (CUP)
Condo Conversion
Bonus Density
All Others
Conditional Use Permit (Transient Rental)
(CUP/$1822, CDP/$1156 Public Nolice/$272, CEQN$510)
Home Occupancy Review
Variance
Less than 25%
Greater than 25%
Coastal Development Permit (CDP)
Zone
Zone Change
Zone Change+ Local Coastal Permit (LCP)
Zoning Confirmation letter
Sign
Temporary Sign Permit
Business Corner Sign Permit
Sign Permit
Sign Variance
Fees for Additional Processing Needed:

General Plan Amendment
General Plan Deposit
General Plan Consultant Preparation
lincludina Processina Feel
General Plan City Attorney Review
(includina Processiml Feel
Appeal to Planning Commission
Appeal to Planning Commission Fee
Development Agreement
Development Agreement Deposit
Development Agreement Attorney Review
(including Processing Fee)
UNIT FY 23
FY 24
Proposed
Each 262 272
Each 1,755 COST+20%
Each 1,755 COST+20%
Each 4,394 4,562
Each COST+ 20% COST+ 20%
Each 4,394 4,562
Each COST+ 20% COST+ 20%
Each COST+ 20% COST+ 20%
Each 764 COST+20%
Each 2,633 2,734
Each 2,633 2,734
Each 1,755 1,822
Each 3,621 3,760
Each 177 184
Each 581 603
Each 1,163 1,207
Each 1,113 1,156
Each 4,387 4,555
Each 8,774 9,109
Each 274 284
Each 89 89
Each 315 327
Each 274 284
Each 438 455
Each 2,195 2,279
Each 12,556 13,036
Each COST+20% COST+20%
Each COST+20% COST+2D%
Each 877 911
Each 12,556 13,036
Each COST+20% COST+20%
12 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION XI - PLANNING (CONTINUED)
CEQA
Categorical Exemption
Mitigation Negative Declaration
Declaration Deposit
Consultant Preparation {including Processing Fee)
Attorney Review {including Processing Fee)
Attorney Preparing/Filing {including Processing Fee)
Mitigation Monitoring {including Processing Fee)
EIR
EIR Deposit
Consultant {including Processing Fee)
Attorney Review {including Processing Fee)
Attorney Preparing/Filing {including Processing Fee)
Attorney Review/ Approval - CC&Rs
lincludina Processina Fee\
Other Permits
Extension-6 Month
Compliance Certificate
Administrative Permit
Accessory Dwelling Unit Permit
Preliminary Review Fee
Temporary Use Permit (NEW- FY21)
Site Plan <25% of building
Site Plan > 25%
Building Permits
Issuance Fee
Valuation $0 to $700
Valuation $700 to $25,000
Plus: Tor each addillonal S1,000 or fraction above S1,000 Valuation $25,001 to $50,000
Plus: for each addillonal $1,000 or fracllon above S25,000 Valuation $50,001 to $100,000
Plus: for each addlllonal $1,000 or fracllon above $50,000 Valuation $100,001 to $250,000
Plus: for each addilional S1,000 or fracllon above S100,000 Valuation $250,001 to $500,000
Plus: for each addlllonal S1 ,ooo or fraction above $250,000 Valuation $500,001 and over
Plus: for each addlllonal $1 ,000 or fraction above $500,000 UNIT FY 23 FY24
Proposed
Each 491 510
Each 876 909
Each 3,138 3,258
Each COST+20% COST+20%
Each COST+20% COST+20%
Each COST+20% COST+20%
Each HOURLY COST +20% HOURLY COST+20%
Each 12,386 12,766
Each COST+20% COST+20%
Each COST+20% COST+20%
Each COST+20% COST+20%
Each COST+20% COST+20%
Each 174 179
Each 403 418
Each 433 450
Each 433 450
Each . 287 298
Each 390 390
Each 1,163 1,207
Each 2,325 2,414
Each 42 44
Each 57 59
Each 86 89
Each 23 24
Each 618 642
Each 17 18
Each 1050 1090
Each 13 13
Each 1,688 1,753
Each 7 7
Each 2,590 2,689
Each 7 7
Each 3,937 4,088
Each 6 6
Work within Archeologlcal Sensitive Areas (ASA) - See Archeologlcal Monitoring Fees {Page 13) Strong Motion Instrumentation & Seismic Mapping (SMIP) Fee Based on construclion valuation + 5% Collected on behalf of the Dept. of Conservation Administration Fee to City California Building Standards & Commission {CBSC) Fee Based on construction valuation + 10% Collected on behalf of Calif. Building Standards Commission Administration Fee to City 13 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE
SECTION XI • PLANNING (CONTINUED)
Green Building Code/Plan Check Fees
Instrumentation Program Surcharge
Residential
Other
Minimum
Energy Conservation Surcharge
Disabled Access Surcharge
Combined Bldg/Plumbing/Electrical/Mechanical (incl. Pools) Plan Check
Plan Check
Standard Plans
Minimum
Duplicate plan (percentage of plan check fee)
Extension Fee (percentage of plan check fee)
Grading Permit Fees
Issuance Fee
1--50 cubic yards
51--1,000 cubic yards
1,001--10,000 cubic yards
for each addiUonal 100 cu.yds. or fraction above 1,000
10,001--100,000 cubic yards
for each addilional 100 cu.yds. or fraction above 10,000 101,000 or more
for each addltional 100 cu.yds. or fraction above 100,000 UNIT
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
Each
See Archeofogical Monitoring Fees for work within Archeo/ogicaf Sensitive Areas (ASA) Grading Plan Check Fees
Gradinn Plan Check (includim1 Processina Feel Each
Deposit
Landscape Penni! Fees
2,500- 7,500 square feet Each
7,501--15,000 square feet Each
15,000--30,000 square feet Each
30,001 square feet to 1 acre Each
Landscape Plan Check Fee
Landscape Plan Check (including Processing Fee) Each
Deposit
FY23
FY 24
Proposed
Included in regular plan Included in regular plan
check. check.
10% 10%
20% 20%
5% 5%
10% 10%
5% 5%

1.5 X Building Permit 1.5 X Building Permit
Fee Fee
16 16

1.5 X Building Permit 1.5 X Building Permit
Fee Fee
106 110
198 206
70% 70%
25% 25%
44 46
212 220
316 328
1,259 1,307
89 92
208 216
57 59
7,215 7,491
142 147
COST+20% COST+20%
1,809 1,878
249 259
372 386
746 775
911 946
COST+20% COST+20%
1,206 1,252
14 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION XI - PLANNING (CONTINUED)
Additional Foes
Work Commencing before Permit Issuance
Per CBC 109.4
Minimum Fee for violation
Issuance for items below
Miscellaneous site inspection
Occupancy Inspection (Change of Use)
Residential
Other
less than 5,000 square feet
5,001--10,000 square feet
10,001--100,000 square feet
above 100,001 square feet
Substandard Notice Correction Inspection
Demolition Permit Fee
Demolition Inspection-Asbestos/Lead
Group A, Division 4 Structures
Amusement Park Inspections
First structure
Each additional structure
Building Relocation
up to 2,500 square feet
2,501 square feet and above
Trailer Coach Inspections
Inspection Outside Business Hours, per hour
Other inspection, per hour
Barriers for Pools
Permit Copy
Public Record Research (per hour)
Concept Review Approval
Concrete/ Material Testing (NEW FY21)
Geotechnlcal Site Review
Engineering geology report
Geotechnical engineering report
Combination Report
Review to determine need for report
Coastal engineering reports
Parking occupant load calculation
Reproduction of microfilmed plans
Assignment of house numbers
Hourly Rate to review changes
Hourly Rate to review additional changes
Certificate of Occupancy
Certificate of Occupancy Issuance
Temp. Certificate of Occupancy (TCO) (90 Days)
TCO Extension (30 days)
Processing 45-day notice
Processing Notice of Violation
Notice of Compliance
/Rescission of Notice of Violation)
Noncompliance Fee
UNIT FY 23 FY 24
Proposed
Each 2x Permit Fee 2x Permit Fee
Each Min. $100 Min. $100
Each 44 46
Each 553 574
Each 288 299
Each 705 732
Each 850 882
Each 1,414 1,468
Each 2,141 2,223
Each 500 519
Each 215 223
Each 320 332
Each 288 299
Each 215 223
Each 35 36
Each 571 593
Each 1,142 1,186
Each 212 220
Each 129 134
Each 129 134
Each 121 126
Each 3 3
Each 40 42
Each 170 176
Each Cost+ 20% Cost+20%
Each 553 574
Each 553 574
Each 772 802
Each 553 574
Each 507 526
Each 143 148
Each 44 46
Each 70 73
Each 143 148
Each 143 148
Each 133 138
Each 199 207
Each 133 138
Each 579 601
Each 957 994
Each 395 410
Each 265 275
15 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION XI - PLANNING (CONTINUED)
Noncompliance Fee
R-3 occupancies
All other occupancies
Board of Appeals fee
Alternate material fee
Additional hourly rate
Electrical Permit
Issuance Fee
Services, Switchboards
Solar Systems
Investigation Fee - Work without Permit
R-3 occupancies
All other occupancies
Noncompliance Fee
One and two unit buildings
For other occupancies
Saltwater Connection/Disconnection Fees
Connection
Disconnection
Sewer Connection Fees
Residential
Public Shower
Hotels
Take-Out Restaurant
Churches
Bar/Restaurant (less than 100 seats)
Bar/Restaurant (more than 100 seals)
See Section V, Fire for fire-related plan check fees
UNIT FY23
FY 24
Proposed
Each 136 141
Each 270 280
Each 575 597
Each 293 304
Per hour 145 151
Each 44 46
Each 217 450
Each 225 234
Each 451 468
Each 136 141
Each 270 280
Each 136 141
Each 44 46
Per dwelling unit 1,052 1,092
Per shower 353 366
Per room 526 546
Each 1,578 1,638
Each 2,106 2,187
Each 3,156 3,277
Each 4,733 4,914
16 CITY OF AVALON
FISCAL YEAR 2023-2024

MISCELLANEOUS FEE OR SERVICE

SECTION XII - PUBLIC WORKS
Spilled Load (including Processing Fee)
Nuisance Abatement (including Processing Fee)
Street Sweeping (including Processing Fee)
Landslide Clean-up (including Processing Fee)
Pot Hole Repair (including Processing Fee)
Waste Water Treatment Facility Dump Fee (minimum)
Per Gallon (after 600-gallon minimum fee)
Public Works Pennlts
Excavation Permit
Excavation Deposit (min $50) - Issuance Fee
Excavation Administration Surcharge (non-refundable)
Excavation Penalty (including Processing Fee)
Encroachment Permit Application
Obstruction Permit (Daily)
Obstruction Permit (Monthly)
Curb Cut Application
Abandond Vehicle -full cost apprx $1,000/vehicle
UNIT
Each
Each
Each
Each
Each
Each
Gallon
Each

SQUARE FT
Per Deposit
Each
Each
Each
Each
Each
Each
Archeologloal Monitoring Fees - Work within Archeologlcal Sensitive Areas (ASA) Issuance Fee Each
Excavation Permit: Each
Deposit Deposit
Archeoloaical Monitoring Services line. Processina Fee) Each Deposit for 1 O or more Anticipated Excavations a Year Deposit (May or may not be in an ASA)
FY23 FY24
Proposed
COST+20% COST+20%
COST+20% COST+20%
COST+20% COST+20%
COST+20% COST+20%
COST+20% COST+20%

COST COST
1 1
263 273
43 45
20% of Deposit 20% of Deposit
COST+20% COST+20%
263 273
86 89
263 273
263 273

COST COST
44 46
263 273
4,221 4,382
COST+20% COST+20%
8,441 8,764
17 MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AV ALON CITY COUNCIL
June 6, 2023
Finance Department
Matthew Baker, Finance Director
AGENDA ITEM: 7
CITY MANAGER: -e:rr-:

Public Hearing Regarding Resolutions Adopting the Reports Proposing to Have Sewer, Saltwater, and Solid Waste Collection Service, and Grease Collection Service Charges Collected on the Property Tax Roll for Fiscal Year 2023-24 and Directing the City Clerk to File Said Report with the Los Angeles Auditor-Controller to Place Said Charges on the Tax Roll
RECOMMENDED ACTION(S): 1. Open a public hearing on whether to collect the annual solid waste collection service charges, grease collection service charges, sewer charges, and saltwater charges (collectively, the "Charges"), on the property tax roll by the County of Los Angeles. 2. If no majority protest is filed, close the public hearing and adopt four resolution adopting reports of the Charges.

REPORT SUMMARY: In order for Los Angeles County to collect the Charges for the City on the property tax roll, the City Council is required to hold a noticed public hearing, where customers subject to the fees are afforded an opportunity to make objections or protests to collecting the fees on the property tax roll. If objections or protests are not made by the owners of a majority of the separate parcels subject to the fees, the City Council may adopt the reports of the annual fees and direct the City Clerk to file the reports with the Los Angeles County Auditor and request the fees be placed on the County property tax roll. Collecting the fees on the property tax rolls saves the City the costs of billing the Charges itself. The County charges approximately $0.25 per fee per parcel.

On June 1, 2021, the City Council approved a five-year schedule of rates for the Charges. City Staff is proposing the following rates for the Fiscal Year 2023-2024, which are less than the previously approved rates, as follows:
• Sewer +3.5%
• Saltwater +2.5%
• Solid Waste +7.5%
• Grease Collection +7.5%
The increases are necessary to adequately fund capital improvements to existing infrastructure and to develop and maintain adequate reserve levels. In particular, the Solid Waste fund proposed rate increases reflect additional revenues required to fund new state recycling mandates, permitting for potential landfill expansion, and contributions to landfill trust fund for - future closure and post-closure costs. The rate increase for Sewer and Saltwater services are aligned with the rates included in the adopted study. The adopted study had included a 19.5% increase for Solid Waste and Grease Collection rates for Fiscal Year 2023-24 and a 9.5% increase for Fiscal Year 2023-24. However, due to delayed expenditures related to landfill expansion, the City has been able to more gradually phase the required increases of 11.5% for Fiscal Year 2022-2023 and a proposed 7.5% for Fiscal Year 2023-2024. A copy of the current and proposed fees based on customer classification has been included as an attachment to this report.

GOAL ALIGNMENT: Achieve a structurally balanced budget by generating more revenue through the efficient collection of Charges on the property tax roll.

FISCAL IMPACTS: The rates published in the proposed rate schedule attached will increase the total Sewer revenue by approximately $100,000 next year; increase the total Saltwater revenue by approximately $20,000 next year, and increase the Solid Waste revenue by $185,000 next year.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: If the Charges are not placed on the property tax roll, the City would have to directly bill property owners and customers for those Charges.

FOLLOW UP ACTION:
• By August 10, 2023 - Submit reports of Charges to be collected on the FY 23-24 tax roll to Los Angeles County.

ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act. The notice of Public Hearing was advertised May 26, 2023 and June 2, 2023.

ATTACHMENTS:

1. Resolutions to Adopt Reports to Collect Sewer, Saltwater, Solid Waste, and Grease Charges on the Property Tax Roll for FY 2023-24.

2. Comprehensive Sewer, Saltwater, and Solid Waste Rate Study

3. Proposed Rate Schedule - Fiscal Year 2023-2024
RESOLUTION NO. ----

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF AV ALON ADOPTING THE REPORT

PROPOSING TO HA VE SEWER CHARGES

COLLECTED ON THE TAX ROLL AND

DIRECTING THE CITY CLERK OF THE CITY TO

FILE SAID REPORT WITH THE LOS ANGELES

COUNTY AUDITOR-CONTROLLER AND

REQUESTING THE AUDITOR-CONTROLLER
PLACE THE FISCAL YEAR 2023-2024 SEWER

CHARGES ON THE TAX ROLL
WHEREAS, the City of Avalon's ("City's") sewer charges (the "Charges") were adopted by the City Council; and
WHEREAS, the City has prepared a written repmt (the "Report"), attached hereto as Exhibit A and by this reference incorporated herein, and said Repo1t has been filed with the City Clerk describing each parcel of real property subject to the Charges and amount of the Charges for each identified parcel for Fiscal Year 2023-2024; and WHEREAS, the City Clerk caused a notice of the filing of said Report and setting the time and place for a public hearing on June 6, 2023 regarding said Report and to consider whether to place the Charges on the property tax roll, as required in Health and Safety Code sections 5473 et seq.; and
WHEREAS, a public hearing was held on June 6, 2023 by the City Council to hear and consider all objections and protests to the Repo1t on the Charges, and the City Council and has determined and hereby finds that protests have not been made by the owners of a majority of the separate parcels or property described in the Report; and WHEREAS, the City Council has determined to adopt the Report and collect the Charges, any delinquent Charges, and any penalties on the tax roll, which Charges shall constitute a lien against the parcel or parcels of land described in the Report in accordance with California Health and Safety Code sections 5473 et seq.; and WHEREAS, the County of Los Angeles is willing to place as direct assessments on prope1ty tax bills which the County collects on the City's behalf under the General Services Agreement between the City and the County pursuant to California Government Code section 51800 and 29304.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AVALON AS FOLLOWS:

Section 1. The City Council hereby finds and determines that the Recitals are true and correct and are incorporated herein.

Section 2. The Charges set forth in the Report, attached hereto as Exhibit A, and 1 incurred by property owners of the identified parcels described in the Report are hereby confirmed and the Report is hereby adopted.

Section 3. On or before the 10th day of August, 2023, the City Clerk is hereby directed to file a copy of the Report with the Los Angeles County Auditor-Controller, together with a statement endorsed thereon over her signature that the Report has been adopted by the City Council and shall request that the Charges be collected on the tax bills for the taxable parcels in the City identified in the Report and such Charges shall be collected at the same time and in the same manner and by the same persons as, together with and not separately from, the general taxes for the City, and shall be delinquent at the same time and thereafter be subject to the same delinquency penalties to be levied on and collected from the owners of said parcels. Once such action is taken, the amount of the Charges shall constitute a lien against the lot or parcel of land against which the Charges have been imposed, and the tax collector shall include the amount of the Charges on bills for taxes levied against the respective lots and parcels of land.

Section 4. If any section, subsection, clause or phrase in this Resolution or the application thereof to any person or circumstances is for any reason held invalid, the validity of the remainder of this Resolution or the application of such provisions to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have passed this Resolution 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 5. This Resolution shall take effect immediately upon its adoption.

Section 6. The City Clerk shall ce1tify to the adoption of this Resolution.

PASSED AND ADOPTED BY the City Council of the City of Avalon, Avalon, California, on the 6th day of June, 2023, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

Ann H. Marshall, Mayor
ATTEST:

Gabrielle Morones, Deputy City Clerk
2 Exhibit A
Report
[ see attached]
3 FY2023-2024 Direct Assessments
Sewer
APN Sewer
7 480001001 Sewer-Bar/Restaurant> 100
7480001001 Sewer-Public Shower
7480001001 Sewer-Residential
7480001010 Sewer-Residential
7480001018 Sewer-Residential
7480001019 Sewer-Residential
7480001020 Sewer-Residential
7480001028 Sewer-Take Out Restaurant
7480001028 Sewer-Shops/Office
7480001028 Sewer-Shops/Office
7 480002003 Sewer-Bar /Resta ura nt<lO0
7480002003 Sewer-Shops/Office
7 480002003 Sewer-Shops/Office
7480002003 Sewer-Hotel Room
7 480002003 Sewer-Residential
7 480002008 Sewer-Residential
7480002009 Sewer-Residential
7480002010 Sewer-Residential
7480002011 Sewer-Residential
7480002012 Sewer-Residential
7480002013 Sewer-Residential
7480002014 Sewer-Residential
7 480002015 Sewer-Residential
7480002016 Sewer-Residential
7 480002017 Sewer-Residential
7 480002018 Sewer-Residential
7480002019 Sewer-Residential
7 480002020 Sewer-Residential
7480002021 Sewer-Residential
7480002022 Sewer-Residential
7480002023 Sewer-Residential
7480002024 Sewer-Residential
7480002025 Sewer-Residential
7480002026 Sewer-Residential
7 480002027 Sewer-Residential
7480002028 Sewer-Residential
7480002029 Sewer-Residential
7480002030 Sewer-Residential
7480002031 Sewer-Residential
7480002032 Sewer-Residential
7480002033 Sewer-Residential
7480002034 Sewer-Residential
7480002035 Sewer-Residential
Sewer Mult
1 4
1 1
3 1
2 1
1 13
1 1
1 72
4 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1 of 33
Sewer Rate Sewer Total
$4,651.15 $4,651.15
$343.40 $1,373.60
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $3,103.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,570.35 $1,570.35
$1,034.50 $1,034.50
$1,034.50 $13,448.50
$3,110.55 $3,110.55
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$568.95 $40,964.40
$1,034.50 $4,138.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
FY2023-2024 Direct Assessments
Sewer
APN Sewer
7480002036 Sewer-Residential
7480002037 Sewer-Residential
7480002038 Sewer-Residential
7 480002039 Sewer-Residential
7 480002040 Sewer-Residential
7 480002041 Sewer-Residential
7 480002042 Sewer-Residential
7480002043 Sewer-Residential
7480002044 Sewer-Residential
7 480002045 Sewer-Residential
7 480002046 Sewer-Residential
7480002047 Sewer-Residential
7480002048 Sewer-Residential
7 480002049 Sewer-Residential
7 480002050 Sewer-Residential
7480002051 Sewer-Residential
7480002052 Sewer-Residential
7480002053 Sewer-Residential
7480002054 Sewer-Residential
7480002071 Sewer-Residential
7 480002072 Sewer-Residential
7480002076 Sewer-Residential
7480002080 Sewer-Bar/Restaurant>100
7480002080 Sewer-Shops/Office
7480002080 Sewer-Residential
7480002800 Sewer-Residential
7480002900 Sewer-Shops/Office Combir
7480002907 Sewer-Public Shower
7480002907 Sewer-Shops/Office Combir
7 480003009 Sewer-Residential
7480004007 Sewer-Hotel Room
7480004007 Sewer-Take Out Restaurant
7 480004007 Sewer-Residential
7 480005005 Sewer-Shops/Office
7480005005 Sewer-Residential
7480005006 Sewer-Residential
7480005008 Sewer-Residential
7480005011 Sewer-Residential
7 480005019 Sewer-Shops/Office
7 480005019 Sewer-Residential
7 480005023 Sewer-Residential
7480005031 Sewer-Shops/Office
7480005032 Sewer-Shops/Office Combir
Sewer Mult
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 62
15 81
1 1
17 1
10 12
40 9
6 1
4 1
1 2
4 3
1 2
1 1
2 2 of 33
Sewer Rate Sewer Total
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $64,139.00
$1,034.50 $15,517.50
$1,034.50 $83,794.50
$4,651.15 $4,651.15
$1,034.50 $1,034.50
$1,034.50 $17,586.50
$1,034.50 $1,034.50
$662.05 $6,620.50
$343.40 $4,120.80
$662.05 $26,482.00
$1,034.50 $9,310.50
$568.95 $3,413.70
$1,570.35 $1,570.35
$1,034.50 $4,138.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $4,138.00
$1,034.50 $3,103.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$662.05 $1,324.10
FY2023-2024 Direct Assessments
Sewer
APN Sewer
7480005032. Sewer-Residential
7480005034 Sewer-Shops/Office
7 480005034 Sewer-Bar /Resta u ra nt<lO0
7480005038 Sewer-Residential
7480007041 Sewer-Residential
7480007043 Sewer-Residential
7 480007044 Sewer-Residential
7480008005 Sewer-Church
7480008005 Sewer-Residential
7480008022 Sewer-Residential
7480008023 Sewer-Residential
7 480008024 Sewer-Residential
7480008025 Sewer-Residential
7480008026 Sewer-Residential
7480008027 Sewer-Residential
7480008028 Sewer-Residential
7480008029 Sewer-Residential
7480008030 Sewer-Residential
7480008031 Sewer-Residential
7480008032 Sewer-Residential
7480008033 Sewer-Residential
7480008034 Sewer-Residential
7480008035 Sewer-Resident ial
7 480008036 Sewer-Residential
7480008037 Sewer-Residential
7480008038 Sewer-Residential
7480008039 Sewer-Residential
7480008040 Sewer-Residential
7480008041 Sewer-Residential
7480008042 Sewer-Residential
7480008043 Sewer-Residential
7480008044 Sewer-Resident ial
7480008045 Sewer-Residential
7480008050 Sewer-Residential
7480009007 Sewer-Residential
7480009010 Sewer-Residential
7480009013 Sewer-Residential
7480009014 Sewer-Residential
7480009015 Sewer-Residential
7480009016 Sewer-Residential
7480009019 Sewer-Residential
7480009028 Sewer-Residential
7480009029 Sewer-Residential
Sewer Mult
4 1
1 2
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 2
2 2
1 3
1 3
2 2
2 3 of 33
Sewer Rate Sewer Total
$1,034.50 $4,138.00
$1,034.50 $1,034.50
$3,110.55 $3,110.55
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$2,091.40 $2,091.40
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $2,069.00
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $3,103.50
$1,034.50 $1,034.50
$1,034.50 $3,103.50
$1,034.50 $2,069.00
$1,034.50 $2,069.00
$1,034.50 $2,069.00
FY2023-2024 Direct Assessments
Sewer
APN Sewer Sewer Mult Sewer Rate Sewer Total
7480009032 Sewer-Residential 2 $1,034.50 $2,069.00
7 480009033 Sewer~Residential 1 $1,034.50 $1,034.50
7 480009035 Sewer-Residential 2 $1,034.50 $2,069.00
7 480009037 Sewer-Residential 1 $1,034.50 $1,034.50
7 480009038 Sewer-Residential 1 $1,034.50 $1,034.50
7 480009039 Sewer-Residential 1 $1,034.50 $1,034.50
7 480009800 Sewer-Residential 1 $1,034.50 $1,034.50
7480010001 Sewer-Residential 2 $1,034.50 $2,069.00
7480010002 Sewer-Residential 1 $1,034.50 $1,034.50
7 480010003 Sewer-Residential 2 $1,034.50 . $2,069.00
7480010004 Sewer-Residential 1 $1,034.50 $1,034.50
7480010006 Sewer-Residential 2 $1,034.50 $2,069.00
7480010007 Sewer-Residential 2 $1,034.50 $2,069.00
7480010008 Sewer-Residential 3 $1,034.50 $3,103.50
7480010015 Sewer-Residential 2 $1,034.50 $2,069.00
7480010016 Sewer-Residential 2 $1,034.50 $2,069.00
7480010017 Sewer-Residential 1 $1,034.50 $1,034.50
7480010018 Sewer-Residential 2 $1,034.50 $2,069.00
7480010019 Sewer-Residential 3 $1,034.50 $3,103.50
7480010020 Sewer-Residential 2 $1,034.50 $2,069.00
7480010021 Sewer-Residential 1 $1,034.50 $1,034.50
7 480010022 Sewer-Residential 2 $1,034.50 $2,069.00
7 480010023 Sewer-Residential 1 $1,034.50 $1,034.50
7480010030 Sewer-Residential 2 $1,034.50 $2,069.00
7 480010036 Sewer-Residential 2 $1,034.50 $2,069.00
7 48001003 7 Sewer-Residential 1 $1,034.50 $1,034.50
7 480010038 Sewer-Residential 2 $1,034.50 $2,069.00
7480010039 Sewer-Residential 2 $1,034.50 $2,069.00
7480010040 Sewer-Residential 2 $1,034.50 $2,069.00
7 480010049 Sewer-Residential 1 $1,034.50 $1,034.50
7480010050 Sewer-Residential 1 $1,034.50 $1,034.50
7480010052 Sewer-Residential 1 $1,034.50 $1,034.50
7480010053 Sewer-Residential 1 $1,034.50 $1,034.50
7480011001 Sewer-Shops/Office 1 $1,034.50 $1,034.50
7480011002 Sewer-Shops/Office 1 $1,034.50 $1,034.50
7480011002 Sewer-Residential 2 $1,034.50 $2,069.00
7480011006 Sewer-Residential 1 $1,034.50 $1,034.50
7 480011007 Sewer-Residential 1 $1,034.50 $1,034.50
7480011009 Sewer-Residential 1 $1,034.50 $1,034.50
7480011010 Sewer-Residential 1 $1,034.50 $1,034.50
7480011011 Sewer-Residential 1 $1,034.50 $1,034.50
7480011013 Sewer-Residential 1 $1,034.50 $1,034.50
7480011014 Sewer-Residential 2 $1,034.50 $2,069.00
4 of 33
FY2023-2024 Direct Assessments
Sewer
APN Sewer
7480011016 Sewer-Residential
7480011018 Sewer-Residential
7480011019 Sewer-Residential
7480011020 Sewer-Residential
7480011023 Sewer-Shops/Office
7480011023 Sewer-Shops/Office
7480011023 Sewer-Residential
7480011026 Sewer-Residential
7480011027 Sewer-Residential
7480011028 Sewer-Residential
7 480011029 Sewer-Residential
7480011032 Sewer-Shops/Office
7480011032 Sewer-Residential
7480011034 Sewer-Residential
7480011037 Sewer-Shops/Office
7480011037 Sewer-Take Out Restaurant
7480011037 Sewer-Shops/Office
7480011037 Sewer-Bar/Restaurant>lOO
7480011037 Sewer-Shops/Office
7480011037 Sewer-Residential
7480011038 Sewer-Residential
7480012001 Sewer-Residential
7480012002 Sewer-Residential
7480012003 Sewer-Residential
7480012006 Sewer-Residential
7480012009 Sewer-Residential
7480012010 Sewer-Residential
7480012014 Sewer-Residential
7 480012015 Sewer-Residential
7480012018 Sewer-Residential
7 480012019 Sewer-Residential
7 480012020 Sewer-Residential
7 480012022 Sewer-Residential
7480013001 Sewer-Residential
7480013002 Sewer-Residential
7480013004 Sewer-Residential
7480013005 Sewer-Residential
7 480013006 Sewer-Residential
7 480013007 Sewer-Residential
7480013008 Sewer-Residential
7 480013009 Sewer-Residential
7480013010 Sewer-Residential
7480013011 Sewer-Residential
Sewer Mult
1 1
1 1
1 1
1 2
3 1
1 1
1 1
1 1
1 1
1 1
22 1
1 1
1 1
1 2
1 2
2 1
8 2
2 1
1 1
1 1
1 1
1 5 of 33
Sewer Rate Sewer Total
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $3,103.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,570.35 $1,570.35
$1,034.50 $1,034.50
$4,651.15 $4,651.15
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $22,759.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $8,276.00
$1,034.50 $2,069.00
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
FY2023-2024 Direct Assessments
Sewer
APN Sewer Sewer Mult Sewer Rate Sewer Total
7480013012 Sewer-Residential 1 $1,034.50 $1,034.50
7480013013 Sewer-Residential 2 $1,034.50 $2,069.00
7480013014 Sewer-Residential 1 $1,034.50 $1,034.50
7480013015 Sewer-Residential 1 $1,034.50 $1,034.50
7480013016 Sewer-Residential 1 $1,034.50 $1,034.50
7 480013017 Sewer-Residential 1 $1,034.50 $1,034.50
7480013019 Sewer-Residential 2 $1,034.50 $2,069.00
7480013020 Sewer-Residential 1 $1,034.50 $1,034.50
7480013023 Sewer-Residential 1 $1,034.50 $1,034.50
7480013024 Sewer-Residential 1 $1,034.50 $1,034.50
7480013025 Sewer-Residential 1 $1,034.50 $1,034.50
7480013026 Sewer-Residential 1 $1,034.50 $1,034.50
7 480013027 Sewer-Residential 1 $1,034.50 $1,034.50
7480013028 Sewer-Residential 3 $1,034.50 $3,103.50
7480013029 Sewer-Residential 1 $1,034.50 $1,034.50
7480013030 Sewer-Residential 1 $1,034.50 $1,034.50
7480013031 Sewer-Residential 2 $1,034.50 $2,069.00
7480013032 Sewer-Residential 2 $1,034.50 $2,069.00
7480013033 Sewer-Residential 1 $1,034.50 $1,034.50
7480013034 Sewer-Hotel Room 9 $568.95 $5,120.55
7480013034 Sewer-Residential 1 $1,034.50 $1,034.50
7480013039 Sewer-Residential 2 $1,034.50 $2,069.00
7480013040 Sewer-Residential 2 $1,034.50 $2,069.00
7480013041 Sewer-Residential 1 $1,034.50 $1,034.50
7480014001 Sewer-Residential 1 $1,034.50 $1,034.50
7 480014002 Sewer-Residential 1 $1,034.50 $1,034.50
7480014003 Sewer-Residential 2 $1,034.50 $2,069.00
7480014004 Sewer-Residential 3 $1,034.50 $3,103.50
7 480014005 Sewer-Residential 1 $1,034.50 $1,034.50
7480014008 Sewer-Residential 1 $1,034.50 $1,034.50
7480014009 Sewer-Residential 1 $1,034.50 $1,034.50
7480014010 Sewer-Hotel Room 5 $568.95 $2,844.75
7480014010 Sewer-Residential 1 $1,034.50 $1,034.50
7480014013 Sewer-Residential 2 $1,034.50 $2,069.00
7480014014 Sewer-Residential 1 $1,034.50 $1,034.50
7480014015 Sewer-Residential 3 $1,034.50 $3,103.50
7480014016 Sewer-Residential 1 $1,034.50 $1,034.50
7 480014017 Sewer-Residential 1 $1,034.50 $1,034.50
7480014018 Sewer-Residential 3 $1,034.50 $3,103.50
7 480014019 Sewer-Residential 1 $1,034.50 $1,034.50
7480014020 Sewer-Residential 2 $1,034.50 $2,069.00
7480014021 Sewer-Residential 2 $1,034.50 $2,069.00
7480014022 Sewer-Residential 1 $1,034.50 $1,034.50
6 of 33
FY2023-2024 Direct Assessments
Sewer
APN Sewer
7480014023 Sewer-Residential
7480014024 Sewer-Residential
7480014025 Sewer-Residential
7 480014026 Sewer-Residentia I
7480014027 Sewer-Residential
7480014028 Sewer-Residential
7480014029 Sewer-Residential
7480014030 Sewer-Residential
7480014031 Sewer-Residential
7480014032 Sewer-Residential
7480014033 Sewer-Residential
7480014034 Sewer-Residential
7480014038 Sewer-Residential
7480014039 Sewer-Residential
7480015001 Sewer-Public Shower
7 480015001 Sewer-Shops/Office
7480015001 Sewer-Shops/Office
7480015001 Sewer-Take Out Restaurant
7480015001 Sewer-Take Out Restaurant
7480015001 Sewer-Shops/Office
7 480015001 Sewer-Shops/Office
7480015001 Sewer-Bar/Restaurant<lO0
7480015001 Sewer-Hotel Room
7480015002 Sewer-Bar/Restaurant<lO0
7480015002 Sewer-Residential
7480015003 Sewer-Shops/Office Combir
7 480015006 Sewer-Shops/Office
7480015007 Sewer-Shops/Office
7480015007 Sewer-Bar /Resta ura nt<l00
7480015008 Sewer-Shops/Office
7480015009 Sewer-Shops/Office
7480015009 Sewer-Residential
7480015010 Sewer-Shops/Office
7480015010 Sewer-Residential
7480015015 Sewer-Bar/Restaurant<lO0
7480015016 Sewer-Take Out Restaurant
7480015016 Sewer-Bar/Restaurant<lO0
7480015017 Sewer-Bar/Restaurant>lO0
7480015018 Sewer-Shops/Office
7480015018 Sewer-Shops/Office
7 480015018 Sewer-Shops/Office
7480015018 Sewer-Shops/Office
7480015018 Sewer-Residential
Sewer Mult
1 1
1 1
1 2
1 2
1 1
2 1
1 1
2 1
1 1
1 1
1 1
72 1
1 2
1 1
1 1
1 2
1 1
1 1
1 1
1 1
1 1
2 7 of 33
Sewer Rate Sewer Total
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$343.40 $686.80
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,570.35 $1,570.35
$1,570.35 $1,570.35
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$3,110.55 $3,110.55
$568.95 $40,964.40
$3,110.55 $3,110.55
$1,034.50 $1,034.50
$662.05 $1,324.10
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$3,110.55 $3,110.55
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2-,069.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$3,110.55 $3,110.55
$1,570.35 $1,570.35
$3,110.55 $3,110.55
$4,651.15 $4,651.15
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
FY2023-2024 Direct Assessments
Sewer
APN Sewer
7480016001 Sewer-Bar/Restaurant<100
7480016001 Sewer-Bar/Restaurant>100
7480016002 Sewer-Bar/Restaurant<100
7480016002 Sewer-Take Out Restaurant
7480016002 Sewer-Bar/Restaurant>lOO
7 480016002 Sewer-Shops/Office
7480016002 Sewer-Hotel Room
7480016002 Sewer-Residential
7480016003 Sewer-Shops/Office
7480016003 Sewer-Shops/Office
7480016003 S~wer-Hotel Room
7480016003 Sewer-Residential
7480016004 Sewer-Bar/Restaurant>100
7 480016005 Sewer-Shops/Office
7480016005 Sewer-Shops/Office
7 480016005 Sewer-Shops/Office
7480016005 Sewer-Hotel Room
7480016005 Sewer-Residential
7 480016006 Sewer-Shops/Office
7480016006 Sewer-Bar/Restaurant<100
7480016006 Sewer-Hotel Room
7480016007 Sewer-Shops/Office
7480016007 Sewer-Shops/Office
7480016007 Sewer-Hotel Room
7480016007 Sewer-Residential
7480016008 Sewer-Bar/Restaurant<lOO
7 480016008 Sewer-Shops/Office
7480016008 Sewer-Residential
7480016010 Sewer-Not Applicable
7480016010 Sewer-Take Out Restaurant
7480016010 Sewer-Shops/Office Combir
7480016010 Sewer-Shops/Office
7480016011 Sewer-Take Out Restaurant
7480017001 Sewer-Bar/Restaurant>100
7480017001 Sewer-Take Out Restaurant
7 480017001 Sewer-Bar /Res tau ra nt<100
7480017001 Sewer-Shops/Office
7480017001 Sewer-Shops/Office
7480017001 Sewer-Shops/Office
7480017001 Sewer-Shops/Office
7480017005 Sewer-Shops/Office
7480017007 Sewer-Laundry Units
7480017007 Sewer-Shops/Office Combir
Sewer Mult
1 1
1 1
1 1
14 2
1 1
6 1
1 1
1 1
24 1
4 1
6 1
1 41
3 1
1 2
0 1
4 1
1 1
1 1
4 4
4 4
1 15
2 8 of 33
Sewer Rate Sewer Total
$3,110.55 $3,110.55
$4,651.15 $4,651.15
$3,110.55 $3,110.55
$1,570.35 $1,570.35
$4,651.15 $4,651.15
$1,034.50 $1,034.50
$568.95 $7,965.30
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$568.95 $3,413.70
$1,034.50 $1,034.50
$4,651.15 $4,651.15
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$568.95 $13,654.80
$1,034.50 $1,034.50
$1,034.50 $4,138.00
$3,110.55 $3,110.55
$568.95 $3,413.70
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$568.95 $23,326.95
$1,034.50 $3,103.50
$3,110.55 $3,110.55
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$0.00 $0.00
$1,570.35 $1,570.35
$662.05 $2,648.20
$1,034.50 $1,034.50
$1,570.35 $1,570.35
$4,651.15 $4,651.15
$1,570.35 $1,570.35
$3,110.55 $3,110.55
$1,034.50 $4,138.00
$1,034.50 $4,138.00
$1,034.50 $4,138.00
$1,034.50 $4,138.00
$1,034.50 $1,034.50
$1,396.55 $20,948.25
$662.05 $1,324.10
FY2023-2024 Direct Assessments
Sewer
APN Sewer
7480017007 Sewer-Residential
7 480017008 Sewer-Shops/Office
7 480017008 Sewer-Residential
7480017009 Sewer-Shops/Office
7480017009 Sewer-Residential
7480017010 Sewer-Residential
7480017011 Sewer-Church
7480017012 Sewer-Residential
7 480017013 Sewer-Residential
7480017014 Sewer-Hotel Room
7480017014 Sewer-Residential
7480017015 Sewer-Hotel Room
7480017016 Sewer-Shops/Office
7480017016 Sewer-Residential
7 480017017 Sewer-Residential
7480017018 Sewer-Residential
7480017019 Sewer-Residential
7480017020 Sewer-Residential
7480017021 Sewer-Residential
7480017022 Sewer-Residential
7480017023 Sewer-Shops/Office
7 480017023 Sewer-Shops/Office
7480017023 Sewer-Residential
7480017025 Sewer-Take Out Restaurant
7480017025 Sewer-Shops/Office
7480017025 Sewer-Shops/Office Combir
7480017025 Sewer-Not Applicable
7480017025 Sewer-Hotel Room
7480017026 Sewer-Shops/Office
7480017026 Sewer-Public Shower
7 480017027 Sewer-Shops/Office
7480017027 Sewer-Shops/Office
7480017027 Sewer-Shops/Office
7480017028 Sewer-Not Applicable
7480018001 Sewer-Take Out Restaurant
7480018001 Sewer-Laundry Units
7480018001 Sewer-Take Out Restaurant
7480018001 Sewer-Take Out Restaurant
7480018001 Sewer-Take Out Restaurant
7480018001 Sewer-Bar/Restaurant>lO0
7480018001 Sewer-Take Out Restaurant
7480018001 Sewer-Shops/Office Combir
7480018001 Sewer-Hotel Room
Sewer Mult
1 1
2 1
1 4
1 1
2 10
1 6
1 3
1 3
11 7
4 3
1 1
1 1
1 28
0 102
1 4
1 1
1 0
1 20
1 1
1 1
1 17
52 9 of 33
Sewer Rate Sewer Total
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $4,138.00
$2,091.40 $2,091.40
$1,034.50 $1,034.50
$1,034.50 $2,069.00
$568.95 $5,689.50
$1,034.50 $1,034.50
$568.95 $3,413.70
$1,034.50 $1,034.50
$1,034.50 $3,103.50
$1,034.50 $1,034.50
$1,034.50 $3,103.50
$1,034.50 $11,379.50
$1,034.50 $7,241.50
$1,034.50 $4,138.00
$1,034.50 $3,103.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,570.35 $1,570.35
$1,034.50 $1,034.50
$662.05 $18,537.40
$0.00 $0.00
$568.95 $58,032.90
$1,034.50 $1,034.50
$343.40 $1,373.60
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$1,034.50 $1,034.50
$0.00 $0.00
$1,570.35 $1,570.35
$1,396.55 $27,931.00
$1,570.35 $1,570.35
$1,570.35 $1,570.35
$1,570.35 $1,570.35
$4,651.15 $4,651.15
$1,570.35 $1,570.35
$662.05 $11,254.85
$568.95 $29,585.40
Exhibit A
Report
[ see attached]
3 FY2023-2024 Direct Assessments
Grease
APN Grease
7480001001 Grease Removal
7480001001
7480001001
7480001010
7480001018
7480001019
7480001020
7480001028 Grease Removal
7480001028
7480001028
7480002003 Grease Removal
7480002003
7480002003
7480002003
7480002003
7480002008
7480002009
7480002010
7480002011
7480002012
7480002013
7480002014
7480002015
7480002016
7480002017
7480002018
7480002019
7480002020
7480002021
7480002022
7480002023
7480002024
7480002025
7480002026
7480002027
7480002028
7480002029
7480002030
7480002031
7480002032
7480002033
7480002034
7480002035
Rate per Gallon
$ 3.41
$ 3.41
$ 3.41
1 of 33
FY2023-2024 Direct Assessments
Grease
APN
7480002036
7480002037
7480002038
7480002039
7480002040
7480002041
7480002042
7480002043
7480002044
7480002045
7480002046
7480002047
7480002048
7480002049
7480002050
7480002051
7480002052
7480002053
7480002054
7480002071
7480002072
7480002076
Grease
7480002080 Grease Removal
7480002080
7480002080
7480002800
7480002900
7480002907
7480002907
7480003009
7480004007 Grease Removal
7480004007
7480004007
7480005005
7480005005
7480005006
7480005008
7480005011
7480005019
7480005019
7480005023
7480005031
7480005032
Rate per Gallon
$ 3.41
$ 3.41
2 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480005032
7480005034
7480005034 Grease Removal
7480005038
7480007041
7480007043
7480007044
7480008005
7480008005
7480008022
7480008023
7480008024
7480008025
7480008026
7 480008027 ·
7480008028
7480008029
7480008030
7480008031
7480008032
7480008033
7480008034
7480008035
7480008036
7480008037
7480008038
7480008039
7480008040
7480008041
7480008042
7480008043
7480008044
7480008045
7480008050
7480009007
7480009010
7480009013
7480009014
7480009015
7480009016
7480009019
7480009028
7480009029
Rate per Gallon
$ 3.41
3 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480009032
7480009033
7480009035
7480009037
7480009038
7480009039
7480009800
7480010001
7480010002
7480010003
7480010004
7480010006
7480010007
7480010008
7480010015
7480010016
7480010017
7480010018
7480010019
7480010020
7480010021
7480010022
7480010023
7480010030
7480010036
7480010037
7480010038
7480010039
7480010040
7480010049
7480010050
7480010052
7480010053
7480011001
7480011002
7480011002
7480011006
7480011007
7480011009
7480011010
7480011011
7480011013
7480011014
Rate per Gallon
4 of 33
FY2023-2024 Direct Assessments
Grease
APN
7480011016
7480011018
7480011019
7480011020
7480011023
7480011023
7480011023
7480011026
7480011027
7480011028
7480011029
7480011032
7480011032
7480011034
7480011037
Grease
7480011037 Grease Removal
7480011037
7480011037 Grease Removal
7480011037
7480011037
7480011038
7480012001
7480012002
7480012003
7480012006
7480012009
7480012010
7480012014
7480012015
7480012018
7480012019
7480012020
7480012022
7480013001
7480013002
7480013004
7480013005
7480013006
7480013007
7480013008
7480013009
7480013010
7480013011
Rate per Gallon
$
$

3.41 3.41
Sof 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480013012
7480013013
7480013014
7480013015
7480013016
7480013017
7480013019
7480013020
7480013023
7480013024
7480013025
7480013026
7480013027
7480013028
7480013029
7480013030
7480013031
7480013032
7480013033
7480013034
7480013034
7480013039
7480013040
7480013041
7480014001
7480014002
7480014003
7480014004
7480014005
7480014008
7480014009
7480014010
7480014010
7480014013
7480014014
7480014015
7480014016
7480014017
7480014018
7480014019
7480014020
7480014021
7480014022
Rate per Gallon
6 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease Rate per Gallon
7480014023
7480014024
7480014025
7480014026
7480014027
7480014028
7480014029
7480014030
7480014031
7480014032.
7480014033
7480014034
7480014038
7480014039
7480015001
7480015001
7480015001
7480015001
7480015001
7480015001
7480015001
7480015001 Grease Removal $ 3.41
7480015001
7480015002
7480015002
7480015003
7480015006
7480015007
7480015007 Grease Remova l $ 3.41
7480015008
7480015009
7480015009
7480015010
7480015010
7480015015 Grease Remova l $ 3.41
7480015016 Grease Remova l $ 3.41
7480015016 Grease Remova l $ 3.41
7480015017 Grease Removal $ 3.41
7480015018
7480015018
7480015018
7480015018
7480015018
7 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease Rate per Gallon
7480016001 Grease Removal $ 3.41
7480016001 Grease Removal $ 3.41
7480016002 Grease Removal $ 3.41
7480016002
7480016002 Grease Removal $ 3.41
7480016002
7480016002
7480016002
7480016003
7480016003
7480016003
7480016003
7480016004 Grease Removal $ 3.41
7480016005
7480016005
7480016005
7480016005
7480016005
7480016006
7480016006
7480016006
7480016007
7480016007
7480016007
7480016007
7480016008
7480016008
7480016008
7480016010
7480016010 Grease Removal $ 3.41
7480016010
7480016010 Grease Removal $ 3.41
7480016011 Grease Removal $ 3.41
7480017001
7480017001
7480017001 Grease Removal $ 3.41
7480017001
7480017001
7480017001
7480017001
7480017005
7480017007
7480017007
8 of 33
FY.2023-2024 Direct Assessments
Grease
APN Grease Rate per Gallon
7480017007
7480017008
7480017008
7480017009
7480017009
7480017010
7480017011
7480017012
7480017013
7480017014
7480017014
7480017015
7480017016
7480017016
7480017017
7480017018
7480017019
7480017020
7480017021
7480017022
7480017023
7480017023
7480017023
7480017025
7480017025 Grease Removal $ 3.41
7480017025
7480017025
7480017025
7480017026
7480017026
7480017027
7480017027
7480017027
7480017028
7480018001
7480018001
7480018001 Grease Removal $ 3.41
7480018001 Grease Removal $ 3.41
7480018001 Grease Removal $ 3.41
7480018001
7480018001 Grease Removal $ 3.41
7480018001
7480018001
9 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480018003
7480018004
7480018004
7480018004
7480018005
7480018006
7480018007
7480018009
7480018009
7480018009
7480018014
7480018014
7480018015
7480018016
7480018018
7480018024
7480018024
7480018025
7480018025
7480018027
7480018031
7480018032
7480018033
7480018034
7480018037
7480018040
7480018041
7480018042
7480018043
7480019004
7480019005
7480019006
7480019009
7480019010
7480019010
7480019012
7480019012
7480019013
7480019013
7480019014
7480019015
7480019015
7480019016
Rate per Gallon
$ 3.41
10 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480019017
7480019018
7480019021
7480019022
7480019023
7480019023 Grease Removal
7480019023
7480019026
7480019027
7480019028
7480019029
7480019030
7480019031
7480019032
7480019033
7480019034
7480019036
7480019037
7480019038
7480019039
7480019800
7480019800
7480020001
7480020005
7480020006
7480020010
7480020011
7480020012
7480020013
7480020017
7480020018
7480020019
7480020020
7480020020
7480020022
7480020023
7480020024
7480020025
7480020026
7480020028
7480020028
7480020028
7480020029
Rate per Gallon
$ 3.41
11 of 33
FY2023-2024 Direct Assessments
Grease
APN
7480020030
7480020031
7480020032
7480020032
7480020032
7480020034
7480020035
7480020036
7480020037
7480020038
Grease
7480021002 Grease Removal
7480021002
7480021007
7480021007
7480021007 Grease Removal
7480021007 Grease Removal
7480022002
7480022005
7480022010
7480022015
7480022016
7480022017
7480022018
7480022019
7480022020
7480022024
7480022025
7480022029
7480022029
7480022030
7480022043
7480022044
7480022045
7480022046
7480022053
7480022054
7480022055
7480022056
7480022059
7480022062
7480022063
7480022065
7480022066
Rate per Gallon
$
$
$

3.41 3.41

3.41 12 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480022069
7480022800
7480023001
7480023002
7480023005
7480023006
7480023007
7480023008
7480023009
7480023010
7480023011
7480023016
7480023017
7480023019
7480023021
7480023022
7480023023
7480023024
7480023025
7480023027
7480023028
7480024001
7480024002
7480024006
7480024007
7480024011
7480024017
7480024018
7480024019
7480024021
7480024025
7480024026
7480024031
7480024034
7480025003
7480025007
7480025008
7480025009
7480025010
7480025011
7480025012
7480025013
7480025014
Rate per Gallon
13 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480025015
7480025020
7480025022
7480025023
7480025024
7480026001
7480026002
7480026002
7480026003
7480026004
7480026010
7480026011
7480026012
7480026013
7480026014
7480026015
7480026016
7480026017
7480026018
7480026020
7480026022
7480026026
7480026029
7480026030
7480026032
7480026033
7480026034
7480026035
7480026036
7480026037
7480026038
7480026039
7480026040
7480026041
7480026042
7480026043
7480026044
7480026045
7480026046
7480026047
7480026048
7480026049
7480026050
Rate per Gallon
14 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480026051
7480026052
7480026053
7480026054
7480026055
7480027001
7480027002
7480027003
7480027004
7480027005
7480027006
7480027007
7480027008
7480027009
7480027011
7480027012
7480027013
7480027014
7480027016
7480027017
7480027018
7480027019
7480027020
7480027021
7480027022
7480027023
7480027024
7480027025
7480027026
7480027028
7480027030
7480027031
7480027032
7480027033
7480027034
7480027035
7480027036
7480028002
7480028003
7480028013
7480028015
7480028017
7480028018
Rate per Gallon
15 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480028020
7480028022
7480028023
7480028024
7480028026
7480028027
7480028028
7480028029
7480028032
7480028033
7480028034
7480028037
7480028040
7480028041
7480028042
7480028043
7480028044
7480028046
7480028047
7480028048
7480028053
7480028061
7480028062
7480028063
7480028064
7480028065
7480028066
7480028068
7480028069
7480028070
7480029003
7480029009
7480029012
7480029013
7480029014
7480029015
7480029016
7480030005
7480030006
7480030007
7480030010
7480030014
7480030021
Rate per Gallon
16 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480030022
7480030023
7480030024
7480030025
7480030027
7480030028
7480030037
7480030038
7480030040
7480030041
7480030042
7480030043
7480030044
7480030045
7480030046
7480030047
7480030048
7480030049
7480030050
7480030051
7480030052
7480030056
7480030057
7480030058
7480030059
7480030060
7480030061
7480030062
7480030063
7480030064
7480031001
7480031002
7480031012
7480031013
7480031013
7480031014
7480031014
7480031017
7480031020
7480031022
7480031027
7480031028
7480031030
Rate per Gallon
17 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480031031
7480031032
7480031033
7480031034
7480031035
7480031036
7480031037
7480031039
7480031040
7480031041
7480031044
7480031045
7480031046
7480031049
7480031050
7480031050
7480031053
7480031054
7480031055
7480031900
7480032001
7480032002
7480032004
7480032008
7480032009
7480032011
7480032012
7480032013
7480032014
7480032016
7480032018
7480032021
7480032024
7480032025
7480032029
7480032030
7480032032
7480032033
7480032035
7480032036
7480032037
7480032038
7480032039
Rate per Gallon
18 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480032040
7480032042
7480032043
7480032044
7480032045
7480032046
7480032047
7480033001
7480033002
7480033003
7480033004
7480033005
7480033006
7480033007
7480033008
7480033009
7480033010
7480033011
7480033012
7480033013
7480033014
7480033015
7480033016
7480033017
748003~018
7480033019
7480033020
7480033021
7480033022
7480033023
7480033024
7480033025
7480033026
7480033027
7480033028
7480033029
7480033030
7480033031
7480033032
7480033033
7480033038
7480033039
7480033040
Rate per Gallon
19 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480033042
7480033043
7480033044
7480033045
7480033046
7480033047
7480033048
7480033049
7480033050
7480033051
7480033053
7480033054
7480033055
7480034001
7480034002
7480034003
7480034004
7480034005
7480034006
7480034007
7480034008
7480034009
7480034010
7480034011
7480034012
7480034013
7480034014
7480034015
7480034016
7480034017
7480034018
7480034019
7480034020
7480034021
7480034022
7480034023
7480034024
7480034025
7480034026
7480034027
7480034028
7480034029
7480034030
Rate per Gallon
20 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480034035
7480034036
7480034037
7480034038
7480034039
7480034040
7480034041
7480034042
7480034043
7480034044
7480034045
7480034046
7480034047
7480034048
7480034049
7480034050
7480034051
7480034052
7480034054
7480034055
7480034056
7480035001
7480035002
7480035003
7480035004
7480035005
7480035006
7480035007
7480035008
7480035010
7480035011
7480035011
7480035012
7480035013
7480035014
7480035015
7480035016
7480035017
7480035018
7480035019
7480035020
7480035021
7480035022
Rate per Gallon
21 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480035023
7480035024
7480035025
7480035026
7480035027
7480035028
7480035029
7480035030
7480035031
7480035032
7480035034
7480035035
7480035036
7480036001
7480036002
7480036003
7480036004
7480036005
7480036006
7480036007
7480036008
7480036009
7480036010
7480036011
7480036012
7480036013
7480036014
7480036015
7480036016
7480036017
7480036018
7480036019
7480036020
7480036021
7480036022
7480036023
7480036024
7480036025
7480036026
7480036027
7480036028
7480036029
7480036030
Rate per Gallon
22 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480036031
7480036032
7480036033
7480036034
7480036035
7480036036
7480036037
7480036038
7480036039
7480036040
7480036041
7480037001
. 7480037002
7480037003
7480037004
7480037005
7480037006
7480037007
7480037008
7480037009
7480037010
7480037011
7480037012
7480037013
7480037014
7480037015
7480037016
7480037017
7480037018
7480037020
7480037022
7480037023
7480037024
7480037025
7480037026
74800370.27
7480037028
7480037029
7480037030
7480037031
7480037032
7480037033
7480037034
Rate per Gallon
23 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480037035
7480037036
7480037037
7480037038
7480037039
7480037040
7480037043
7480037044
7480037045
7480037046
7480037048
7480037049
7480038004
7480038005
7480038011
7480038012
7480038013
7480038014
7480038015
7480038016
7480038017
7480038018
7480038019
7480038020
7480038021
7480038022
7480038023
7480038024
7480038025
7480038026
7480038027
7480038028
7480038029
7480038030
7480038031
7480038032
7480038033
7480038034
7480038035
7480038036
7480038037
7480038038
7480038039
Rate per Gallon
24 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480038040
7480038041
7480038042
7480038043
7480038044
7480038045
7480038046
7480038047
7480038048
7480038049
7480038050
7480038051
7480038052
7480038053
7480038054
7480038055
7480038056
7480038057
7480038058
7480038059
7480038060
7480038061
7480038062
7480038063
7480038064
7480038065
7480038066
7480038067
7480038068
7480038069
7480038070
7480038071
7480038072
7480038073
7480038074
7480038075
7480038078
7480038079
7480038084
7480038085
7480038086
7480038087
7480038088
Rate per Gallon
25 of 33
FY2023-2024 Direct Assessments
Grease
APN
7480038089
7480038090
7480045011
7480045011
7480045021
7480045021
7480045021
7480045021
7480045021
7480045021
Grease
7480045021 Grease Removal
7480045021
7480045021
7480045021
7480045022
7480045038
7480045038
7480045038
7480045047
7480045047
7480045047
7480045047
7480045801
7480047036
7480047037
7480047038
7480047039
7480047040
7480047041
7480047042
7480047043
7480047044
7480047045
7480047046
7480047047
7480047048
7480047049
7480047050
7480047051
7480047052
7480047053
7480047054
7480047055
Rate per Gallon
$ 3.41
26 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480047056
7480047057
7480047058
7480047059
7480047060
7480047061
7480047062
7480047063
7480047064
7480047065
7480047066
7480047067
7480047068
7480047083
7480047090
7480047091
7480048014
7480048015
7480048016
7480048017
7480048018
7480048021
7480048022
7480048023
7480048026
7480048027
7480048032
7480048033
7480048036
7480048037
7480048038
7480048039
7480048040
7480048041
7480048042
7480048043
7480048044
7480048045
7480048046
7480048047
7480048048
7480048049
7480048050
Rate per Gallon
27 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480048082
7480048083
7480048084
7480048085
7480048086
7480048087 ·
7480048088
7480048089
7480048090
7480048091
7480048092
7480048093
7480048094
7480048095
7480048096
7480048097
7480048098
7480048099
7480048100
7480048101
7480048102
7480048103
7480048104
7480048105
7480048106
7480048107
7480048108
7480048109
7480048110
7480048111
7480048112
7480048113
7480048114
7480048115
7480048116
7480048117
7480048118
7480048119
7480048120
7480048121
7480048122
7480048123
7480048124
Rate per Gallon
28 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480048125
7480048126
7480048127
7480048128
7480049017
7480049018
7480049019
7480049020
7480049021
7480049022
7480049023
7480049024
7480049025
7480049026
7480049027
7480049028
7480049029
7480049030
7480049031
7480049032
7480049033
7480049034
7480049035
7480049036
7480049037
7480049038
7480049039
7480049040
7480049041
7480049042
7480049043
7480049044
7480049045
7480049046
7480049047
7480049048
7480049049
7480049050
7480049051
7480049052
7480049053
7480049054
7480049055
Rate per Gallon
29 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480049056
7480049057
7480049058
7480049059
7480049060
7480049061
7480049062
7480049063
7480049064
7480049065
7480049066
7480049067
7480049068
7480049069
7480049072
7480049075
7480049078
7480049079
7480049081
7480049082
7480049085
7480049086
7480049089
7480049090
7480049091
7480049094
7480049095
7480049096
7480049099
7480049100
7480049101
7480049103
7480049104
7480049105
7480049106
7480049107
7480049108
7480049109
7480049110
7480050001
7480050002
7480050003
7480050004
Rate per Gallon
30 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480050005
7480050006
7480050007
7480050008
7480050009
7480050010
7480050011
7480050012
7480050013
7480050014
7480050015
7480050016
7480050017
7480050018
7480050019
7480050020
7480050021
7480050022
7480050023
7480050024
7480050025
7480050026
7480050027
7480050028
7480050029
7480050030
7480050031
7480050032
7480050033
7480050034
7480050035
7480050036
7480050037
7480050038
7480050039
7480050040
7480050041
7480050042
7480050043
7480050044
7480050045
7480050046
7480050047
Rate per Gallon
31 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
7480050048
7480050049
7480050050
7480050051
7480050052
7480050053
7480050054
7480050055
7480050056
7480050057
7480050058
7480050059
7480050060
7480050061
7480050062
7480050063
7480050064
7480050065
7480050066
7480050067
7480050068
7480050069
7480050070
7480050071
7480051004
7480051901
7480051901
7480052003
7480052007
7480052010
7480052011
7480052012
7480052013
7480052014
7480052015
7480052016
7480052017
7480052018
7480052019
7480052020
7480053002
7480053005
8940017000
Rate per Gallon
32 of 33
FY2023-2024 Direct Assessments
Grease
APN Grease
8940017001
8940017003
8940017004 Grease Removal
8940017005
8940017006
8940017007 Grease Removal
8940017007
8940017008
8940017008
8940017010
8940017011
8940017014
8940017016 Grease Removal
8940017019
8940017022
8940017023
8940017025
8940017027
8940017029
8940017031
8940017034
8940017037
8940017043
8940017044
8940017046
8940017056
1 HOA
1 HOA
2 HOA
2 HOA
3 HOA
3 HOA
4 HOA
FY2023-24
Rate per Gallon
$ 3.41
$ 3.41
$ 3.41
33 of 33
I final eport
Comprehensive Sewer,
Saltwater, and Solid Waste L Ill\~
Rate Study r .I~
June 2021
1-)~
June 4, 2021
Mr. Matt Baker
Finance Director
City of Avalon
410 Avalon Canyon Road
Avalon, California 90704
Subject: City of Avalon Sewer, Saltwater, and Solid Waste Rate Study Final Report Dear Mr. Baker:

HDR Engineering, Inc. (HDR) is pleased to present the final report for the sewer, saltwater, and solid waste rate study update conducted for the City of Avalon (City). The primary objective in conducting a rate study for each utility is to establish cost-based and proportional utility rates, for a five-year period, which is intended to provide adequate and sustainable funding for each utility's operational and capital needs. This report outlines the approach, methodology, findings, and conclusions of the rate study process undertaken for each utility.

This report was developed utilizing the City's accounting, operating, and historical customer billing records. HDR has relied upon this information to develop our analyses which formed our findings, conclusions, and recommendations. At the same time, this study was developed utilizing generally accepted rate setting principles. The conclusions and recommendations contained within this report are intended to provide the City with cost-based and equitable utility rates for its customers.

We appreciate the assistance provided by the City staff, management, and the City Council in the development of this study.

Sincerely yours,
HDR Engineering, Inc.

Shawn Koorn
Associate Vice President
I Table of Conte11ts
Executive Summary 1
1 Introduction and Overview 10

1.1 Introduction ......................................................................................................... 10

1.2 Overview of the Rate Study Process ..................................................................... 10

1.3 Report Organization ............................................................................................. 11

1.4 Summary ............................................................................................................. 11 2 Overview of the Rate Setting Process 12

2.1 Introduction ......................................................................................................... 12

2.2 Generally Accepted Rate Setting Principles .......................................................... 12

2.3 Types of Utilities .................................................................................................. 12

2.4 Determining the Revenue Requirement.. ............................................................. 13

2.4.1 Public Utilities .............................................................................................. 13

2.5 Designing Rates .................................................................................................... 14

2.6 Summary ............................................................................................................. 14 3 Sewer Rate Study 15

3.1 Introduction ......................................................................................................... 15

3.2 Determining the Sewer Utility Revenue Requirement.. ......................................... 15

3.2.1 Determining the Time Period and Approach ................................................. 15

3.2.2 Projection of Sewer Revenues ...................................................................... 16

3.2.3 Projection of Sewer Operation and Maintenance Expenses .......................... 16

3.2.4 Projection of Sewer Capital Improvement Projects and Funding ................... 17

3.2.5 Projection of Taxes and Transfer Payments .................................................. 18

3.2.6 Projection of Debt Service ............................................................................ 19

3.2. 7 Reserve Funding ........................................................................................... 19

3.2.8 Summary of the Sewer Revenue Requirement ................ : ............................ 19

3.2.9 Review of Sewer Reserve Levels ................................................................... 21

3.2.10 Consultant's Sewer Revenue Requirements Recommendations ................... 21

3.3 Development of the Sewer Cost of Service ........................................................... 21

3.3.1 Overview of the City's Current Sewer Rate Structure .................................... 22

3.4 Development of the Sewer Rate Designs ............................................................. 23

3.4.1 Rate Design Goals and Objectives ................................................................. 23

3.4.2 Present and Proposed Sewer Rate Design .................................................... 24

3.5 Summary of the Sewer Rate Study Update ........................................................... 25 1-)~ 1 Table of Contents
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 4 Saltwater Rate Study . 26

4.1 Introduction ......................................................................................................... 26

4.2 Determining the Saltwater Utility Revenue Requirement.. ................................... 26

4.2.1 Determining the Time Period and Approach ................................................. 26

4.2.2 Projection of Saltwater Revenues ................................................................. 26

4.2.3 Projection of Saltwater Operation and Maintenance Expenses ..................... 27

4.2.4 Projection of Saltwater Capital Improvement Projects and Funding ............. 27

4.2.5 Projection of Taxes and Transfer Payments .................................................. 29

4.2.6 Projection of Debt Service ............................................................................ 29

4.2. 7 Reserve Funding ........................................................................................... 29

4.2.8 Summary of the Saltwater Revenue Requirement ........................................ 29

4.2.9 Review of the Saltwater Reserve Levels ........................................................ 30

4.2.10 Consultant's Saltwater Revenue Requirements Recommendations .............. 31

4.3 Development of the Saltwater Cost of Service ..................................................... 31

4.4 Development of the Saltwater Rate Designs ........................................................ 31

4.4.1 Rate Design Goals and Objectives ................................................................. 31

4.4.2 Present and Proposed Saltwater Rates ......................................................... 32

4.5 Summary of the Saltwater Rate Study Update ..................................................... 32 5 Solid Waste Rate Study 33

5.1 Introduction ......................................................................................................... 33

5.2 Determining the Solid Waste Revenue Requiremen_t.. .......................................... 33

5.2.1 Determining the Time Period and Approach ................................................. 33

5.2.2 Projection of Solid Waste Revenues ............................................................. 33

5.2.3 Projection of Solid Waste Operation and Maintenance Expenses ................. 34

5.2.4 Projection of Solid Waste Capital Improvement Projects and Funding .......... 34

5.2.5 Projection of Taxes and Transfer Payments .................................................. 34

5.2.6 Projection of Debt Service ............................................................................ 35

5.2. 7 Reserve Funding ........................................................................................... 35

5.2.8 Summary of the Solid Waste Revenue Requirement.. ................................... 35

5.2.9 Review of the Solid Waste Reserve Levels ..................... : .............................. 37

5.2.10 Consultant's Solid Waste Revenue Requirement Recommendations ............ 37

5.3 Development of the Solid Waste Cost of Service .................................................. 37

5.4 Development of the Solid Waste Rate Designs ..................................................... 38

5.4.1 Rate Design Goals and Objectives ................................................................. 38

5.4.2 Present and Proposed Solid Waste Rate Designs .......................................... 38

5.5 Summary of the Solid Waste Rate Study Update .................................................. 38

5.6 Rate Adoption ............................................................ : ......................................... 39 1-)~ I Table of Contents
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study ii
Technical Appendix A - Sewer
Technical Appendix B - Saltwater
Technical Appendix C - Solid Waste
Technical Appendix D - Proposition 218
1-)~ I Table of Conte nts
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study iii
I Executive Summary
Introduction
HDR Engineering, Inc. {HDR) was retained by the City of Avalon {City) to perform a comprehensive sewer, saltwater, and solid waste rate study. The development of this study examines the adequacy of the existing revenues (rates) for each utility and provides the basis for any recommended adjustments to rates, while seeking to adequately and equitably fund the operating and capital (O&M) needs of each utility. This report describes the overall methodology used to analyze the City's rates, for e9ch utility, along with the findings, conclusions, and recommendations.

Overview of the Rate Study Process
A sewer, saltwater, and solid waste rate study uses three interrelated analyses to address the adequacy and equity of a utility's rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. These three analyses are illustrated below in Figure ES-1.

Figure ES -1
Overview of the Comprehensive Rate Analyses
Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses of
each utility to determine the overall
revenue (rate) adjustment required
Equitably allocates and proportionally
distributes the revenue requirement of
each utility to the customer classes of
service of each utility
Considers both the level and structure
of the rate design to collect the target
level of revenues as developed in the
cost of service analysis
The results from each of the above tasks, for each utility, were used as the basis for establishing cost-based and equitable rates for the City's customers.

Key Rate Study Results
Each utility was financially evaluated on a standalone basis. By reviewing the sewer, saltwater, and solid waste utilities on a standalone basis, the need to adequately fund both O&M and capital infrastructure must be balanced against the rate impacts to customers and therefore, avoid any inter-fund subsidies.

Executive Summary 1
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Based on the technical analysis undertaken as part of this study, the following findings, conclusions, and recommendations were noted.
• A revenue requirement analysis was developed for each utility for the projected time period of FY 2020-21- FY 2025-26
• The starting point for the revenue requirement analyses was the City's adopted FY 2020- 21 O&M budget and capital improvement plans for each utility • O&M expenses are projected to increase at historical inflationary levels, with no assumed changes to levels of service or anticipated extraordinary expenses for the sewer and saltwater utilities
• Additional O&M expenses were included for solid waste to reflect additional costs ·associated with unfunded mandates and future landfill expansion evaluations • The sewer, solid waste, and saltwater utilities revenues need to be increased to prudently fund the operating and capital needs over the next 5-year period • A five-year rate transition plan (FY 2021-22 - FY 2025-26) was developed to adequately fund the operating and capital needs of each utility
✓ Sewer Utility - 7.0% annually in FY 2021-22 and FY 2022-23, 3.5% in FY 2023-24, and

3.0% annually through FY 2024-25 and FY 2025-26
✓ Salt Water - 3.0% annually in FY 2021-22 and FY 2022-23, 3.5% in FY 2023-24, and

3.0% annually through FY 2024-25 and FY 2025-26
✓ Solid waste Utility- 19.5% annually in FY 2021-22 and FY 2022-23, 9.5% in FY 2023- 24, and 3.0% annually through FY 2024-25 and FY 2025-26 • The proposed rate transition plans are necessary for the City to adequately fund its financial needs and maintain prudent financial measures and operating metrics . ✓ Adequate funding of capital improvements from rates to prudently maintain the City's existing infrastructure (i.e., renewal and replacement programs) ✓ Maintain adequate minimum reserve levels for routine operating and capital needs and emergencies
✓ Development of a stable financial outlook and ability to fund future capital improvements
• A review of the proportionality of the rates for the service fees among customers, for each utility, was developed as part of the rate study
• The study developed proposed rates for the FY 2021-22 through FY 2025-26 for each utility based on the overall revenue needs and equitable allocation of costs • By FY 2025-26, the City should review the financial/rate status of each utility and the potential need for additional rate adjustments and/or a rate structure review Sewer Rate Study
The sewer rate study evaluated the overall adequacy and proportionality of the existing rates for sewer service, at current adopted levels. The sewer utility was evaluated on a standalone basis.

That is, no funding sources other than those generated by the sewer utility, such as sewer service charges and other sewer-related fees and revenues, were considered or used to fund sewer utility expenses.

Executive Summary 2
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Sewer Revenue Requirement Analysis
The starting point of the sewer revenue requirement analysis was the adopted FY 2020-21 budget. HOR developed a projection of revenues and expenses for future years based on historical inflationary factors. The focus of the study was the next 5-year rate setting period to review future rate needs based on operat ing and capital needs.

The revenue requirement analysis sums the utility's operating and capital infrastructure expenses and compares it to the total sewer revenues to determine the overall rate adjustment required. As noted above, a rate transition plan was developed for the sewer utility to smoothly implement any needed rate adj ustments. Provided in Table ES - 1 is a summary of the sewer revenue requirement analysis developed for the City.

FY FY FY FY FY FY
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Revenues
Rate Revenues $2,513 $2,513 $2,513 $2,513 $2,513 $2,513 Non-Operating Revenues ~ ____1Q1 ----1Qa _£9.§ __:NZ ___IQ§ Total Revenues $2,717 $2,718 $2,718 $2,719 $2,719 $2,720 Expenses
O&M Expenses $2,398 $2,404 $2,460 $2,518 $2,578 $2,639
Taxes & Transfers 0 0 0 0 0 0
Rate Funded Capital 48 48 48 48 48 0
Net Debt Service 250 350 375 400 425 500
Change in Working Capital 21 91 198 217 222 227
Total Expenses $2,717 $2,893 $3,082 $3,184 $3,274 $3,366 Bal./(Def.) of Funds $0 ($176) ($364) ($465) ($554) ($646) Deficiency as% of Rate Revenue 0.0% 7.0% 14.5% 18.5% 22.1% 25.7% Proposed Rate Adjustments 0.0% 7.0% 7.0% 3.5% 3.0% 3.0% Add'I Revenue with Rate Adj. $0 $176 $364 $465 $554 $646 Bal./(Def.) After Rate Adj. $0 $0 $0 $0 $0 $0
Based upon t he sewer revenue requirement analysis provided in Table ES - 1, it is recommended the City increase the overall sewer utility revenue levels by 7.0% annually from FY 2021-22 to FY 2022-23, 3.5% in FY 2023-24, and 3.0% annually in FY 2024-25 and FY 2025-26. The deficit in FY 2021-22 - absent any rate adjustments - is approximately $176,000 and increases to $646,000 by FY 2025-26. The rate adjustments are primarily needed to fund sewer capital improvement projects, maintain adequate reserve levels, and annually fund from rates a prudent level of annual renewal and replacement capital needs to maintain the system.

Executive Summary 3
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Sewer Cost of Service Analysis
The City's current sewer rate structure was reviewed to determine the cost-basis and the proportionality of the sewer rates in the prior study which was completed in 2017 {2017 Study).

It is also important to note that t he City does not receive metered water use data, which is typically used to estimate the wastewater flow in a sewer cost of service analysis for establishing rates. Therefore, the first step was to define one (1) equivalent dwelling unit (EDU), as the base for estimated sewer flow. The EDU reflects the estimated flow of the typical single-family residential customer. In other words, each single-family customer is assigned 1 EDU. The remaining customers (non-residential) are billed based on a variety of different units such as the number of rooms, showers, seats, etc., with each billing unit being a proportion of 1 EDU based on industry standard sewer flow estimates.

The City's cost of service study analyzed the proportions based on assumed wastewater contributions. Given the results of the review of the flow assumptions, and resulting proportion of an EDU, the City's rates for non-residential customers appeared to be equitable and proportional. As this analysis has been completed recently, this analysis reviewed the ,prior approach, and it was maintained. It is also important to note that t he customer characteristics and the industry standard flow assumptions have not changed since the 2017 study. Given this, proposed sewer rates can be developed to reflect t he overall revenue needs and relationships between the customer types on an EDU basis as is the City's current approach.

Sewer Rate Design Analysis
The final component of t he rate study is the development of sewer rates which reflect the overall revenue needs and base on the flow rates per EDU and billing unit. Table ES - 2 summarizes the present and proposed sewer rates.

Table ES-2
Present and Proposed Annual Sewer Rates
Proposed
Present FY FY FY FY FY
Customer· Class Rates 2021-22 2022-23 2023-24 2024-25 2025-26 Residential $873.00 $934.10 $999.50 $1,034.50 $1,065.55 $1,097.50 Commercial
Public Shower $289.80 $310.10 $331.80 $343.40 $353.70 $364.30 Hotel 480.15 513.75 549.70 568.95 586.05 603.60
Laundry 1,178.55 1,261.05 1,349.30 1,396.55 1,438.50 1,481.60 Shop/ Office 873.00 934.10 999.50 1,034.50 1,065.55 1,097.50 Other Combined Shop/ Office 558.70 597.80 639.65 662.05 681.95 702.35 Take-out Restaurant 1,325.20 1,417.95 1,517.20 1,570.35 1,617.50 1,666.00 Church 1,764.90 1,888.40 2,020.65 2,091.40 2,154.15 2,218.75 Bar/ Restaurant (<100) 2,624.95 2,808.65 3,005.30 3,110.55 3,203.90 3,300.00 Bar/ Restaurant (>100) 3,925.05 4,199.75 4,493.80 4,651.15 4,790.75 4,934.40 Executive Summary 4
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study The proposed sewer rates maintain the current rate structure, which is comprised of a fixed annua l charge based on the customer class of service. The rate designs are furth(;!r reviewed and discussed in Section 3 of this report.

Saltwater Rate Study
Similar to the sewer rate study, the saltwater rate study determined the overall adequacy and proportionality of the existing saltwater rates, on a standalone basis, at current rate levels. That is, no funding sources other than t hose generated by the sa ltwater utility were used to fund annual expenses.

Saltwater Revenue Requirement Analysis
The starting point of the saltwater revenue requirement analysis was the adopted FY 2020-21 budget. HDR developed a projection of revenues and expenses for future years based on assumed escalation (inflationary) factors. The focus for purposes of rate setting was the next fiveyear period (FY 2021-21- FY 2025-26).

The revenue requirement analysis sums the saltwater utility's operating and capital expenses and compares it to the total saltwater revenues to determine if a rate adjustment is necessary and, if so, at what level. As noted, a rate transition plan was developed to meet the financial needs of the saltwater utility. The summary of the saltwater revenue requirement shown in Table ES - 3 indicates the need for rate adjustments in order to properly fund the saltwater utility.

Table ES - 3
Summary of the Saltwater Revenue Requirement {$000s)

FY FY FY FY FY FY
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
~evenues
Rate Revenues $719 $719 $719 $719 $719 $719
Non-Operating Revenues 91 91 91 91 91 91
Total Revenues $809 $809 $810 $810 $810 $810
Expenses
O&M Expenses $570 $637 $653 $669 $685 $702
Taxes & Transfers 0 0 0 0 0 0
Rate Funded Capital 18 18 18 18 18 0
Net Debt Service 65 125 140 155 170 185
Change in Working Capital 156 47 35 23 11 17
Total Expenses $809 $827 $846 $865 $885 $904
Bal./(Def.) of Funds $0 ($18) ($36) ($55) ($75) ($94)
Deficiency as% of Rate Revenue 0.0% 2.5% 5.1% 7.7% 10.4% 13.1% Proposed Rate Adjustments 0.0% 2.5% 2.5% 2.5% 2.5% 2.5% Add'I Revenue with Rate Adj. $0 $18 $36 $55 $75 $94
Bal./{Def.) After Rate Adj. $0 $0 ($0) $0 $0 $0
1-)~ ,
Executive Summary 5
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study The results of the saltwater revenue requirement show the need for annual 2.5% rate adjustments in FY 2021-22 through FY 2025-26. The total deficiency of revenues before any rate adjustment s ranges from $18,000 in FY 2021-22 to $94,000 by FY 2025-26. The level of the overall deficit is driven, in part, by the increased funding from rates for capita l improvement projects as wel l as general inflation of annual O&M expenses. The proposed rate adjustments are designed to provide sufficient revenue to fund the annual O&M and capital needs of the saltwater utility, as well as maintaining strong financial metrics for debt service coverage ratios and reserve balances.

Saltwat er Cost of Service Analysis
Much in the same manner as for sewer, the sa ltwater cost of service ana lysis in the 2017 Study reviewed the current saltwater rates with regards to cost basis and proportionality. The City does not meter or monitor saltwater use for the customers. As a result, and similar to the sewer ut ility analysis, this study reviewed the assumed flow generated by each customer class and their related contribution to flows from saltwater use to flush toi lets for the various customer types.

HDR again researched industry information to review the flow assumptions for toi lets for different customer classes. These estimated flows from each of t hese sources were used to determine the proportional share of costs related to each customer class. It is proposed that the current flow ratio assumptions be maintained and only the level of the rates be adjusted to reflect the revenue ne.eds of the utility and the relationship between the customers.

Saltwater Rate Design Analysis
As mentioned above, the proposed rates maintain t he current saltwater fixed rate struct ure. That is, only t he level of t he rate revenue has been proposed to be adjusted based on the recommendations of the study. Provided below in Table ES - 4 are the present and proposed annual sa ltwater rates.

Table ES - 4
Present and Proposed Annual Saltwater Rates
Proposed
Billing Present FY FY FY FY FY
Unit Rates 2021-22 2022-23 2023-24 2024-25 2025-26
Residential Dwelling Unit $265.60 $272.30 $279.10 $286.10 $293.25 $300.60 Commercial Toilet/Urinal $265.60 $272.30 $279.10 $286.10 $293.25 $300.60 Hotel Toilet/Urinal $146.10 $149.75 $153.50 $157.35 $161.30 $165.35 Section 4 of this report provides a detailed discussion of the saltwater rate study undertaken for t he City.

Executive Summary 6
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Solid Waste Rate Study
The solid waste rate study determined the overall adequacy of the City's existing solid waste rates, at current rate levels, along with the proportionality of the current rates based on estimates of solid waste generation by customer type. The solid waste uti lity was evaluated on a standalone basis. That is, no funding sources other than those generated by the solid waste utility were used to fund the uti lity's expenses.

Solid W aste Revenue Requirement Analysis
Just as in the sewer and saltwater revenue requirement analyses, the starting point of the solid waste analysis was the City's adopted FY 2020-21 solid waste budget. HOR developed a projection of the solid waste revenues and expenses for future years based on historica l inflationary factors.

These factors were discussed wit h City staff to confirm their appropriateness and relevance for the solid waste utility. In addition to t he FY 2020-21 budgeted O&M expenses, additional annual expenses were included to reflect recent unfunded mandates and future landfill expansion related expenses. Similar to the other two utilities, the study was developed for a 5-year rate setting period.

The revenue requirement analysis sums the utility's operating and capital expenses and compares it to the total revenues to determine the overall rate adjustment required. As noted above, the rate transition plan was developed to meet the various financial needs of the solid waste utility. Provided below in Table ES- 5 is a summary of the solid waste revenue requirement analysis.
· ,Table ES - 5
Waste Revenue Requirement ($000s)

FY FY FY FY FY FY
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Revenues
Rate Revenues $1,837 $1,837 $1,837 $1,837 $1,837 $1,837 Non-Operating Revenues 125 124 123 123 123 124
Total Revenues $1,962 $1,961 $1,960 $1,960 $1,960 $1,961 Expenses
O&M Expenses $2,033 $2,346 $2,555 $2,628 $2,603 $2,681
Taxes & Transfers 200 269 279 294 316 349
Net Debt Service 0 0 0 0 0 0
Change in Working Capital {271) {295} {88) 73 163 141
Total Expenses $1,962 $2,319 $2,746 $2,995 $3,082 $3,172 Bal./(Def.) of Funds $0 ($358) ($786) ($1,035) ($1,122) ($1,210) Deficiency as % of Rate Revenue 0.0% 19.5% 42.8% 56.4% 61.1% 65.9% Proposed Rate Adjustments 0.0% 19.5% 19.5% 9.5% 3.0% 3.0% Add'I Revenue with Rate Adj. $0 $358 $786 $1,035 $1,122 $1,210 Bal./(Def.) After Rate Adj. $0 $0 $0 $0 $0 $0
I-)~ I Executive Summary 7
Cit y of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Based upon the revenue requirement analysis shown in Table ES - 5, the City's solid waste revenues are deficient starting in FY 2021-22 by $358,000 and that increases to $1.2 million by FY 2025-26, absent any rate revenue adjustments. As a result, and based on the study assumptions, proposed rate adjustments of 19.5% in FY 2021-22 and FY 2022-23, 9.5% in FY 2023- 24, and 3.0% in FY 2024-25 through FY 2025-26 are recommended at this time. This is primarily driven by the additional unfunded mandates related to solid waste recently enacted by the State, additional costs associated with the evaluation of the landfill expansion, and increasing costs related to providing solid waste services.

Solid Waste Cost of Service Analysis
HDR also reviewed the solid waste rates with regards to cost basis and proportionality. The City contracts for solid waste collection and disposal services. In addition, the City does not have an account by account record of the size or type of waste collection for its customers. Minimal information is available on the number and size of waste collection or number of collections. As a result, the basis of the review of the prior solid waste cost of service was reviewed and compared to typical industry standard assumptions on the amount of waste generation by customer type. The proposed rate schedule does not include any changes or adjustments to the current rate structure and maintains the current relationships between customer types.

Solid Waste Rate Design Analysis
The last step of the rate study is the development of rates which reflect the overall revenue needs, as developed in the revenue requirement analysis. At this time, HDR is not recommending any rate structure changes. After review of all of the City's rates, it appears that the current rate structure for the solid waste utility is reasonable and equitable. Table ES - 6 summarizes the present and proposed fixed rates.

Executive Summary 8
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study if able ES - "l
P.resent and ero~osed Annual Solid Waste Rates
Proposed
Present FY FY FY FY FY
Customer Class Rates 2021-22 2022-23 2023-24 2024-25 2025-26 Residential $559.51 $668.60 $799.00 $874.90 $901.15 $928.20 Res> 10 Units 447.69 535.00 639.35 700.10 721.10 742.75 Shops/ Office 884.15 1,056.55 1,262.60 1,382.55 1,424.05 1,466.75 Grocer 2,652.45 3,169.70 3,787.80 4,147.65 4,272.10 4,400.25 Gathering Space fl/ 442.10 528.30 631.30 691.25 712.00 733.35 Restaurants < 100 seats 3,536.60 4,226.25 5,050.35 5,530.15 5,696.05 5,866.95 Restaurants> 100 seats 7,073.20 8,452.45 10,100.70 11,060.25 11,392.05 11,733.80 Restaurants - Take Out 1,768.30 2,113.10 2,525.15 2,765.05 2,848.00 2,933.45 Hotel Room 213.23 254.80 304.50 333.45 343.45 353.75
Grease Removal ($/ gallon) 2.56 3.06 3.66 4.01 4.13 4.25 [1] - Customers considered in the Gathering Space customer class are, in general, churches, and meeting halls e.g., the "Avalon Theatre" and "Catalina Island Museum"
The proposed annual solid waste rates maintain the current rate structure of the City's customers. A more detai led discussion of the solid waste rate study can be found in Section 5 of the report.

Rate Adoption
Proposition 218 outlines a specific process to legally adopt and implement the proposed sewer, saltwater, and solid waste rates. The first requirement is that the rates must be cost-based and proportional, which is the purpose of completing the rate study. Once the proposed sewer, saltwater, and solid waste rates have been developed, a public process must be undertaken to adopt the proposed rates. This began with the presentation of the proposed rates to the Avalon City Council in April 2021. At this meeting, the City Council directed staff to mail the Proposition 218 notices - shown in the Proposition 218 Appendix - to the City's customers which outlines the proposed changes in rates. The notice also contains the time, date, and location of the public hearing. The City Council then held a public hearing on June 1, 2021 to discuss the publicly noticed and proposed rates. Absent sufficient written protest by customers, the City Council moved to adopt the proposed sewer, sa ltwater, and solid waste rates as outlined in the customer notification over the next five-year period.

Summary of the Sewer, Saltwater, and Solid Waste Rate Study The adequacy of the City's sewer, saltwater, and solid waste rates were reviewed by HDR. Based upon the analyses developed herein, HDR has proposed a comprehensive set of rate recommendations for each utility. The following sections of the report provide a more detailed discussion of the technical analyses undertaken - along with the findings, conclusions, and recommendations of the study.
1-)'"" I Executive Summary
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 9 I 1 Introduction and Overview

1.1 Introduction
The City of Avalon (City} retained HDR Engineering, Inc. (HDR} to perform a rate study for its sewer, saltwater, and solid waste utilities. The rate study is designed to determine the adequacy of the existing rates and provide the basis for any adjustments to establish cost-based and proportional rates. This report describes the methodology, findings, and conclusions of the rate study process.

The study determined whether existing rates are adequate (sufficient} to meet each of the utility's operating and capital expenses with revenues received from customers. Rates set too low may result in insufficient funds to maintain system integrity. The study provides a cost-basis and rationale for making appropriate rate adjustments, as well as identifying issues of equity for some of the utility's current rates.

1.2 Overview of the Rate Study Process
A study consists of three interrelated analyses performed for each utility. Figure 1-1 provides an overview of these analyses.

Figure 1-1
Overview of the Comprehensive Rate Analyses
Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses of
each utility to determine the overall
revenue (rate) adjustment required
Equitably allocates and proportionally
distributes the revenue requirement of
each utility to the customer classes of
service of each utility
Considers both the level and structure
of the rate design to collect the target
level of revenues as developed in the
cost of service analysis
In a rate study, the revenue requirement analysis is concerned with the overall funding sources and expenses of the utility. From this analysis, a determination can be made as to the overall level of adjustment to rates. Next, a cost of service analysis is performed to equitably allocate and proportionally distribute the revenue requirements to the various types of customers served (e.g., residential, commercial}. Finally, once an overall level of rate adjustment is determined and an proportional distribution of those costs is completed, the last step of the rate study process is the design of rates to collect the appropriate level of revenues while considering the other rate I-)~ I Introduction and Overview
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 10 design goals and objectives of the utility (e.g., revenue stability, conservation). For the City's current study, all three analyses were conducted. The results from each task of the rate study, for the sewer, saltwater, and solid waste utilities, were used as the basis for establishing costbased and equitable rates for the City's customers. It is important to note that the cost of service analysis from 2017 was reviewed and utilized as the basis for this study.

In developing this study, HDR utilized "generally accepted" rate setting techniques and industry best practices in the development of the City's utility rate studies. This report discusses the methodology, findings and conclusions of the rate study analysis conducted for each utility. This study has focused on the level of rate revenue needed to fully fund each utility on a standalone basis, and the rates needed to best generate that level of funding, while meeting the City's goals and objectives.

1.3 Report Organization
A detailed report has been developed to document the analyses undertaken for each utility. This report is organized as follows:
• Section 2 provides background information about the utility rate setting process • Section 3 reviews the development of the sewer rate study • Section 4 reviews the development of the saltwater rate study • Section 5 reviews the development of the solid waste rate study.

A technical appendix for each utility is attached at the end of the report which provides a copy of the analyses undertaken in the preparation of this report.

1.4 Summary
This report reviews the sewer, saltwater, and solid waste rate analyses prepared for the City. The report has been developed utilizing generally accepted utility setting methodologies. This report was prepared utilizing data, information and records provided by the City.

Introduction and Overview 11
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study I 2 Overview of the Rate Setting Process

2.1 Introduction
Gaining an understanding of the overall rate setting process and methodologies used is important in order to better understand the approach to the City's rate study. This section of the report provides background information about the rate setting process, including descriptions of generally accepted principles, types of utilities, methods for determining revenue requirements, and rate design. This should provide the reader with a better understanding of the detailed analyses presented in following sections of the report and the basis for our conclusions and recommendations.

2.2 Generally Accepted Rate Setting Principles
As a practical matter, utilities should consider setting their rates around some generally accepted or global principles and guidelines. Utility rates should be:
• Cost-based, equitable, and set at a level that meets the utility's full revenue requirement • Easy to understand and administer
• Designed to conform with generally accepted rate setting techniques • Stable in their ability to provide adequate revenues for meeting the utility's financial, operating, and regulatory requirements
• Established at a level that is stable from year-to-year from a customer's perspective • Established in compliance with State law

2.3 Types of Utilities
Utilities are generally divided into two types:

1. Public utilities are owned by a city, county, or special district, and are operated at zero profit Public utilities are capitalized or financed by issuing debt and recovering funds from customers through direct capital contributions or user rates. Public or municipal utilities are typically exempt from state and federal income taxes. A publicly elected City Council or Board of Directors usually regulates public utilities.

2. Private utilities are "for profit" enterprises and are owned by a private company and/or shareholders. The shareholders are, in essence, the owners of the private utility. Therefore, the owners of a private utility may not be customers or local citizens, but rather numerous individuals or shareholders spread across the United States. A private utility is capitalized by issuing stock to the general public.

Private utilities are taxable entities. Given their for-profit status, their rates and operations are generally regulated by a state public utility commission or other regulatory body.

As a point of reference, the City's utilities are public (municipal) utilities and the analyses have been based on the methodology generally utilized by for public utilities.

Overview of the Rate Setting Process 12
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study

2.4 Determining the Revenue Requirement
Because public and private utilities have very different administrative and financial characteristics, their methods differ for determining revenue requirements and setting rates. A discussion of these rate setting differences are provided below.

2.4.1 Public Utilities
Most public utilities use the "cash basis"1 approach for establishing their revenue requirement and setting rates. This approach conforms to most public utility budgetary requirements and the calculation is easy to understand. A public utility:
• Totals its cash expenditures for a period of time to determine required revenues • Adds operation and maintenance {O&M) expenses to any applicable taxes or transfer payments to determine total operating expenses. Operation and maintenance expenses include the materials, electricity, labor, supplies, etc. needed to keep the utility functioning. • Calculates capital costs by adding debt service payments {principal and interest) to capital improvements financed with · rate revenues. In lieu of including capital improvements financed with rate revenues, a utility sometimes includes depreciation expense to stabilize annual revenue requirement.

Under the cash basis approach, the sum of the capital and operating expenses equals the utility's revenue requirernent during any period of time (see Table 2 - 1).

Table 2 - 1
Cash versus Utility Basis Comparison
Cash Basis Utility Basis (Accrual)
+ O&M Expense + O&M Expense
+ Taxes or Transfer Payments + Taxes or Transfer Payments + Capital Improvements Financed with Rate + Depreciation Expense Revenues (<! Depreciation Exp.)
+ Debt service (Principal+ Interest) + Return on Investment = Total Revenue Requirement = Total Revenue Requirement Note that the two portions of the capital expense component {debt service and capital improvements financed from rates) are necessary under the cash basis approach because utilities generally cannot finance all their capital facilities with long-term debt. An exception occurs if a public utility provides service to a wholesale or contract customer. In this situation, a public utility could use the "utility basis" approach (see below) to earn a fair return on its investment. 1 This is the basis of accounting under which revenues are recorded when .cash is received and expenditures are recoded when cash is disbursed.

I-)~ I Overview of the Rate Setting Process
City of'Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 13 The analyses developed within this report utilize the "cash basis" methodology. This is consistent with past practices in the City's utility rate-setting.

2.5 Designing Rates
For this study, rates that meet the utility's objectives are designed based on the revenue requirement analysis and cost of service analysis. This provides rates that are cost-based (i.e., designed to collect a cost-based level of revenues) and proportional (i.e., reflect the costs placed on the system by a customer class and customers within a class).

2.6 Summary
This section of the report has provided a brief introduction to the general principles, techniques, and economic theory used to set sewer, saltwater, and solid waste utility rates. The next section of the report discusses the sewer utility rate study and the technical analyses undertaken.

Overview of the Rate Setting Process 14
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study I 3 Sew er Rate Study

3.1 Introduction
This section of the report describes the development of the rate study for the City's sewer utility.

This includes the development of a revenue requirement, cost of service, and rate design analyses.

3.2 Determining the Sewer Utility Revenue Requirement
The revenue requirement is the first analytical step in the comprehensive rate study process. This analysis determines the adequacy of the overall sewer rates, at current rate levels, to recover sufficient revenues to fund the utility's projected total annual operations and maintenance expenses and capital-related costs incurred to meet the various aspects of providing the utility's services. From this analysis, a determination can be made as to the overall level of rate adjustment needed to provide adequate and prudent funding for both operating and capital needs.

In developing the revenue requirement, it was assumed the sewer utility must financially "stand on its own" and be properly funded. As a result, the revenue requirement as developed herein assumes the full and proper funding needed to operate and maintain the system on a financially sound and prudent basis. This includes maintaining adequate reserve levels, prudently funding annual repair and replacement needs (rate-funded capital), and meeting other industry standard financial metrics (e.g., debt service coverage), where applicable. Provided below is a more detailed discussion of the de_velopment of the revenue requirement analysis for the City's sewer utility.

3.2.1 Determining the Time Period and Approach
The first step in calculating the revenue requirement for the sewer utility was to establish a test period, or the time period to review the revenue requirement analysis. For this study, the revenue requirement was developed for a projected five-year projected time period of FY 2021- 22 through FY 2025-26 for the projection of sewer rate revenue adjustments. Reviewing a multiyear time period is recommended in order to more easily identify any major expenses that may be on the horizon and also help detect any key cost trends that may be occurring. By anticipating future financial requirements, the City can begin planning for these changes sooner, thereby minimizing short-term rate impacts and minimizing overall long-term rate volatility.

The second step in determining the revenue requirement was to decide on the basis of accumulating costs. For the City's sewer revenue requirement analysis, a "cash basis" approach was utilized. This method is the most commonly used methodology by municipal utilities to set their revenue requirement. The actual revenue requirement developed for the City was customized to follow their system of accounts (budget documents). However, the revenue requirement still contains the basic cost components of a cash basis methodology.

Sewer Rate Study 15
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study The primary financial inputs in this process were the City's historical billing records, adopted operating budget, and current capital improvement plans (CIP). Following is a detailed discussion of the steps and key assumptions contained in the development of the projections of the City's revenues and expenses.

3.2.2 Projection of Sewer Revenues
The City receives revenue from two primary sources, sewer rate revenues from customers and miscellaneous revenue as a result of operating a sewer utility. Sewer rate revenues are based on the current sewer rate structure and collected on an annual basis. Other revenue includes items such as licenses, permits, late fees, and other miscellaneous revenues. Provided below is a brief discussion of the projection of the sewer revenues for the sewer rate study.

The first step in developing the revenue requirement was to develop a projection of sewer rate revenues which was based on the current customer characteristics and current sewer rates. This calculated level of rate revenues was compared to the projected FY 2020-21 budget to determine if the customer billing characteristics resulted in planned revenue levels. The vast majority of the City's rate revenues are derived from residential customers. There are two main customer classes of service: residential and commercial. Within the commercial class there are eight (8) subgroups:
public shower, hotel, laundry, shop/office, take-out restaurant, church, bar/restaurant (<100 seats), and bar/restaurant (>100 seats). In total, at present rates levels, the City is projected to receive approximately $2.5 million in sewer rate revenues in FY 2020-21. Over the planning horizon of this study, customer growth is expected to be flat, at 0.0% annually, which reflects the City's recent historical customer growth, resulting in projected total sewer rate revenues of approximately $2.5 million annually through FY 2025-26.

In addition to rate revenues, the City also receives a variety of miscellaneous revenues.

Miscellaneous sewer revenues are projected to be approximately $205,000 in FY 2020-21.

Miscellaneous revenues are expected to increase slightly over the review period and are projected to be approximately $207,000 by FY 2021-22. This increase is the result of estimated interest revenue from the sewer reserve funds.

On a combined basis, taking into account both rate revenues and miscellaneous revenues, the City's total projected sewer revenues are projected to be approximately $2.7 million in FY 2020- il, remaining flat at $2.7 million by FY 2025-26, absent any rate adjustments. The total revenues - both from rates and other miscellaneous sources - are summarized in Exhibit 3 of Technical Appendix A.

3.2.3 Projection of Sewer Operation and M aintenance Expenses Operation and maintenance (O&M) expenses are incurred by the City to operate and maintain the sewer system. The costs incurred in this area are expensed during the current year and are not capitalized or depreciated. In general, O&M expenses are grouped into a number of different functional categories. To begin the process of projecting O&M expenses over the planning horizon, escalation factors were developed. Escalation factors were developed to project increases in the basic types of expenses incurred by the sewer utility- e.g.; salaries, benefits, materials and supplies, utilities, equipment, insurance-and other miscellaneous expenses. 1-)~ I Sewer Rate Study
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 16 These escalation factors were based on historical increases in City costs for the sewer utility. For the study planning period, the escalation factors were assumed to be approximately 1.5% - 5.0% per year, depending upon the specific cost incurred.

The escalation of costs, using the escalation factors, assumes no cha nges in the current levels of service, meaning, no extraordinary changes in O&M levels were assumed. The exception to this was an adjustment to labor costs to reflect the City moving back to past staffing levels for sewer in FY 2021-22. Given the City's adopted budgeted for FY 2020-21 O&M expenses, HDR then escalated the O&M expenses based on the previously mentioned escalation factors. Total sewer O&M expenses for the City are projected to be approximately $2.4 million in FY 2020-21. Sewer O&M expenses are projected to increase to approximately $2.6 million by FY 2025-26 as a result of the assumed escalation factors over the time period. The budgeted and projected O&M expenses are shown in detail in Exhibit 3 of Technical Appendix A.

3.2.4 Projection of Sewer Capital Improvement Projects and Funding The City has a long-term sewer capital improvement plan that was utilized for the rate study. The City's sewer capital improvement plan averages approximately $492,000 annually over the next five-year period of FY 2021-22 through FY 2025-26. Provided in Table 3 - 1 is t he sewer capital improvement program for the period of FY 2020-21- FY 2025-26. This data is shown in Exhibit 4 in Technical Appendix A. The actual ca pita I projects completed during the time period wil l depend on available funding sources and priority of the projects. The primary funding sources for these projects are assumed to be from rate funding of capital and available reserves.

Table 3-1
Summary of the Sewer Capital Improvement Plan ($000s)

FY FY FY FY FY FY
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Total Capital Improvements $250 $497 $375 $434 $606 $650 Total Outside Funding Sources $0 $147 $0 $34 $181 $155
Rate Funded Capital $250 $350 $375 $400 $425 $500
There are a number of different methods which may be used to fund these capital projects.

Among the different methods that may be used to finance these capital improvement projects are long-term debt, reserve funds, and rate reven ues. The majority of the projects in the City's capital improvement program are funded from current rate revenues on a pay-as-you-go basis, which is a very sound and prudent practice. Whi le a majority of the projects wi ll be funded directly from rates, in t hose years where additional funding may be required, t he funding plan assumes this wil l be provided through available reserve funds. Based on the rate transition plan developed as part of t he revenue requirement, the City wi ll have adequate resources to obtain funding sources for these major projects in the future. Provided below is a discussion of t he typical funding sources the City has used, and/or will use, to fund the planned improvements over the next five-year period.
1-)"" I Sewer Rate Study
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 17 Rate Funding
A general financial guideline states that, at a minimum, a utility should fund an amount from rates which is equal to or greater than the annual depreciation expense. Annual depreciation expense reflects the current investment in plant being depreciated or "losing" its useful life.

Therefore, this portion of plant investment needs to be annually funded to maintain the existing level of infrastructure. In addition, consideration should be given to using rate revenues to fund an amount greater than the annual depreciation expense for repairs and replacements as costs escalate over time and replacement cost is generally greater than the original cost. Whenever possible, the City should be funding capital projects from rates in an amount greater than annual depreciation expense to better reflect replacement costs. At the present time, the annual depreciation expense of the sewer utility is approximately $378,000 based on the City's financial statements. Over the course of the five-year review period, the City is funding a total of $2.0 million via rates, or an average of $383,000 per year. With the proposed rate funding included within this study, the sewer utility has made significant strides toward adequate funding for the repair and replacement of the existing sewer system infrastructure.

Reserve Funding
The use of reserves to fund capital improvements is another method available to the City, when and if reserves are available. During the projected time period of the rate study, there will be approximately $462,000 in reserves used as a funding source for capital improvement projects over the review period. The sewer utility reserve fund has historically been established by annual surpluses in years where revenues may be greater than the annual expenses of the sewer utility.

This allows the City to reserve funds for projects in later years when more or larger projects are undertaken. This approach helps to mitigate future rate adjustments and smooth rates over time.

However, close attention should be given to the reserve balance as to not reduce it below the minimum target.

Long-Term Debt
The use of long-term debt is another potential source of funding for capital projects. There a re advantages and disadvantages with the issuance of long-term debt and it is important to weigh them when deciding whether to issue or not. Long-term debt does have prudent applications whereby it acts as a financial device to spread the costs of a larger project, such as a new pump station, over multiple years. Doing so then assigns the costs of the new facility to the customers who are benefit from it over the life of the facility (so called "inter-generational equity"}. For this study, no additional long-term debt has been assumed.

As can be seen, there are multiple methods by which the City may fund their capital projects.

Each method has an impact upon the revenue requirements of the sewer utility.

3.2.5 Projection of Taxes and Tra nsfer Payments
The sewer revenue requirement also includes taxes and transfer payments. In this particular case, no taxes or transfer payments have been identified for the time period reviewed.

Sewer Rate Study 18
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study

3.2.6 Projection of Debt Service
The final component of the City's revenue requirement is debt service. At the present time, there is one outstanding sewer utility debt obligation, the interfund loan from the City's solid waste utility. The annual debt service is approximately $48,000 and ends in FY 2024-25. As discussed previously in the capital funding section, the City may issue additional long-term debt for specific projects. However, at this time no new, or specific, long-term debt is planned. The rate transition plan developed for the City provides the ability to issue debt, should it be deemed necessary, and still maintain a strong debt service coverage ratio, which is an indicator used to measure the financial capability of the utility to repay the debt.

3.2. 7 Reserve Funding
This study has used reserve funding - that is, the transfer to/from reserve funds - to smooth and mitigate the rate adjustments in any particular year. This provides the City with a method to mitigate one time cost increases when reserve funds are available to offset these costs.

Alternatively, it allows the City to transfer funds to reserves to meet target ending balances if they have been drawn down in prior years. In the sewer revenue requirement analysis, change in working capital is primarily used to strengthen the City reserve levels to meet target minimum balances.

3.2.8 Summary of the Sewer Revenue Requirement
Given the above projections of revenues and expenses, a summary of the revenue requirement for the City's sewer utility can be developed. In developing the revenue requirement, consideration was given to the City's key financial planning considerations. In particular, emphasis was placed on attempting to minimize rate impacts, yet still adequately fund the utility's operational activities and capital improvement needs throughout the projected time period. Presented below in Table 3 - 2 is a summary of the sewer revenue requirement analysis.

The detailed of the sewer revenue requirement analysis is provided in the Technical Appendix A in Exhibit 3.

Sewer Rate Study 19
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Budgeted

FY FY FY FY FY
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Revenues
Rate Revenues $2,513 $2,513 $2,513 $2,513 $2,513 $2,513 Non-Operating Revenues 205 205 205 206 207 207
Total Revenues $2,717 $2,718 $2,718 $2,719 $2,719 $2,720 Expenses
O&M Expenses $2,398 $2,404 $2,460 $2,518 $2,578 $2,639
Taxes & Transfers 0 0 0 0 0 0
Rate Funded Capital 48 48 48 48 48 0
Net Debt Service 250 350 375 400 425 500
Reserve Funding 21 91 198 217 222 227
Total Expenses $2,717 $2,893 $3,082 $3,184 $3,274 $3,366 Bal./(Def.) of Funds $0 ($176) ($364) ($465) ($554) ($646) Deficiency as% of Rate Revenue 0.0% 7.0% 14.5% 18.5% 22.1% 25.7% Proposed Rate Adjustments 0.0% 7.0% 7.0% 3.5% 3.0% 3.0% Add'I Revenue with Rate Adj. $0 $176 $364 $465 $554 $646 Bal./(Def.) After Rate Adj. $0 $0 $0 $0 $0 $0
In reviewing Table 3 - 2, it is important to note the annual deficiencies shown are cumulative and any rate adjustment in the initial years wi ll reduce the deficiency in the current year and al l subsequent years. In summary form, the results of the sewer revenue requirement analysis indicate a deficiency of funds over the planning period (FY 2020-21 - FY 2025-26). The deficiencies shown are primarily driven by the need to fund the capital improvement needs, as well as annual increases in O&M due to inflationary impacts. As the need for capital funding from rates increases, the overall deficiency also increases. At the same time, the financial plan developed must meet the City's financial planning targets (e.g., minimum reserve levels, adequate capital funding through rates). The cumulative deficiency is approximately $176,000 in FY 2020-21 increasing to $646,000 in FY 2025-26, prior to any rate adjustments. This is shown in Table 3 - 2 on the row above the proposed rate adjustment line.

To meet the financial plan and the sewer revenue requirements, rate revenue adjustments have been proposed. It is proposed that the City adjust their sewer rates annually by 7.0% in FY 2021- 22 through FY 2022-23, 3.5% in FY 2023-24, and 3.0% annually from FY 2024-25 and FY 2025-26.

The proposed adjustments are projected to provide adequate funding for annual operating and capital needs during this time period.
1-)°"' I Sewer Rate Study
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 20 3.2.9 Review of Sewer Reserve Levels
Reserves are an important part of a utility's financial picture. There can be many different purposes for reserves. Currently, the sewer reserve fund has a minimum target balance of $591,000; this is calculated to be approximately 90 days of O&M expenses. The graphic of the Sewer Utility - Reserve Fund
$800,000 .,.---------- - ----- - -
$200,000
FV 2020-21 FV 2021-22 FV 2022-23 FV 2023-24 FV 2024-25 FV 2025-26 - Sewer Fund - 107 - - - Target: 90 days of O&M
sewer reserve levels shows the
balance of reserves for the City's
sewer utility over the review period
after the rate adjustments have been
implemented.

The City should also routinely analyze
the reserve funds to maintain
adequate levels. As stated earlier, the
reserve fund is used to help pay for
large capital infrastructure projects
that require funding above the level of
annual rate funding. To ensure that
functionality, additional funding of the reserve fund may be required in the future.

3.2.10 Consultant's Sewer Revenue Requirements Recommendations Based upon the revenue requirement analysis developed herein, HDR recommends that the City adjust the overall rate levels of the sewer utility by 7.0% annually in FY 2021-22 and FY 2022-23,

3.5% in FY 2023-24, and 3.0% annually in FY 2024-25 through FY 2025-26. These proposed rate adjustments are projected to provide sufficient funding for the City to fully fund its operations and planned capital improvements, as well as maintain and potentially strengthen its financial status going forward.

3.3 Development of the Sewer Cost of Service
The establishment of cost-based and equitable rates was of paramount importance in the development of the City's sewer cost of service analysis. Meeting the legal requirements and documenting the steps taken to meet the requirements, has been in the forefront with the recent legal challenges in the State of California on utility rates. A focus has been given to meeting the legal requirements of California Constitution article XIII D, section 6 (A~ticle XIII D). A key component of Article XII I Dis the development of rates which reflect the cost of providing service and are proportionally allocated among the various customer classes of service, and the customers within each class. HDR would point out that there is no single methodology for equitably assigning costs to the various customer classes. The Water Environment Federation Manual of Practice #27 provides various methodologies which may be used to establish costbased rates. Unfortunately, Article XIII D is not prescriptive and does not provide a specific methodology for establishing cost-based rates.

HDR is of the opinion that the proposed rates meet the legal requirements of Article XIII D. HDR reaches this conclusion based upon the following:

Sewer Rate Study 21
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study • The revenue derived from sewer rates does not exceed the funds required to provide the property related service (i.e., sewer service). The proposed rates are designed to collect the overall revenue requirement of the City's sewer system. • The revenues derived from sewer rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the City's sewer rates are used exclusively to fund the City's sewer system O&M and provide adequate funding for capital improvement, repair, and replacement.
• The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel.

The study has appropriately grouped customers into customer classes of service (residential, restaurants, hotel, theatre, etc.) that reflect the varying customer usage patterns and system requirements (i.e., the benefits they receive from and burdens they place on the system) of each customer class of service. The grouping of customers and rates into these classes of service creates the equity and fairness expected under Article XIII D by having differing rates by customer classes of service which reflect both the level of revenue to be collected by the utility, and the manner in which these costs are incurred and equitably assigned to customer classes of service based upon their proportional impacts.

3.3.1 Overview of the City's Current Sewer Rate Structure As mentioned previously, the cost of service analysis was reviewed for appropriateness given the recent analysis completed in the 2017 Study. This included a review of the proportionality of the sewer rates. It is important to note that the City does not have the ability to obtain metered water consumption data, which is helpful in reviewing and developing an equitable allocation of costs. Given these limitations and based on the current rate structure used by the City, an approach was developed to review the proportionality, or cost comparison, of the rate structure.

For the cost comparison, it is assumed that residential customers were charged based on being assigned 1 EDU for their estimated sewer flow. The calculation of the billing unit for each type of billing for the non-residential customers is based on the estimated sewer flows resulting from each component (seats, rooms, etc.) on a per EDU basis. HDR researched industry information to review the flow assumptions for each billing component of the City's sewer rates. There were four (4) industry sources of information found that HDR utilized to review the calculation of the non-residential charges for the City. The estimated flows from each of these sources were used to determine the proportion of an EDU for each billing component (seats, rooms, etc.). In other words, the estimated flow for each customer was compared to the estimated residential flow.

This calculation provided a ratio of each customer class to a residential customer. This calculation was completed for each of the City's different types of non-residential customers. As noted, this approach was necessary given the lack of metered water data which is typically used to establish the relationships between customer classes. The industry data provided the relationship between the customer classes on a flow based perspective that is typically used in the development of a sewer cost of service study as noted in the Water Environment Federation Manual of Practice No. 27 (WEF MOP #27). Provided in 3-3 is a summary of the flow estimates on an EDU basis for the various customers served by the City by source of information obtained by HDR.
1-)~ ,
Sewer Rate Study
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 22 iTable 3 - 3
Exam~le ot ttle Sewer. Rate P.roRor.tionalitY. Review
Proportion to 1 EDU (230 gallons per day)
2005 EPA WA
Billing Unit Current Metcalf Design Dept. bf Ohio . , , , -, Customer Class / Basis City & Eddy Ell Manual ti/ Health £ 3l EPA £
4 l Ratio
Residential Living Unit 1.00 1.00
Public Shower Per Shower 0.33 0.18 0.17 0.33
Hotel Per Room 0.55 0.30 0.48 0.40 0.40 0.55
· Take-Out Restaurant Each 1.52 1.56 1.30 2.08 2.10 1.52 Shop/ Office Each 1.00 0.80 1.04 1.20 1.60 1.00
Laundry Wash Unit 1.35 1.35 2.20 2.00 1.60 1.35
Bar/Restaurant (<100) Each 3.01 2.80 3.60 3.20 3.50 3.01 Bar/Restaurant (>100) Each 4.50 4.20 5.40 4.80 5.60 4.50 Church Each 2.02 1.20 1.60 2.00 2.00 2.02
[1) - "Wastewater Engineering - Treatment and Resource Recovery", Metcalf & Eddy I AECOM, Fifth Edition [2) - "Onsite Wastewater Treatment Systems Manual", United States Environmental Protection Agency, June 2005 [3) - "Water System Design Manual", Washington Department of Health, December 2009 [4) - "NOi instructions" Attachment B, Ohio Environmental Protection Agency, December 2009 Given the results of the review of the flow assumptions, and resulting proportion of an EDU, the City's rates for non-resident ial customers appear to be equitable and proportional. While there is a difference in the ratios, it should be noted that the flow assumptions vary depending on the calculation and assumptions for each reference. As an example, for hotels, it can vary depending on the total flow from the hotel which may, or may not, include laundry faci lities, restaurant, bar, etc. Given this discussion, it is recommended that the proposed rates maintain the current billing structure and only the level of the rates be adjusted to reflect the impacts customers place on the system.

3.4 Development of the Sewer Rate Designs
The next step of the rate study process is the design of sewer rates to collect the targeted levels of rate revenue, based upon the results of the revenue requirement analysis. In reviewing sewer rate designs, consideration is given to both the level of the rates and the structure of the rates.

3.4.1 Rate Design Goals and Objectives
Prudent rate administrat ion dictates that several criteria must be considered when setting ut ility . rates. Some of t hese rate design goals are listed below:
• Rates which are easy to understand from the customer's perspect ive • Rates which are easy for the City to administer
• Consideration of t he customer's ability to pay
• Continuity, over time, of the rate making philosophy
1-)'"\ I Sewer Rate Study
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 23 • Policy considerations (encourage conservation, economic development, etc.} • Provide revenue stability from year to year
• Promote efficient allocation of the resource
• Equitable and non-discriminatory (cost-based}
• Compliance with California law
Given the requirement and intent of Proposition 218, the last consideration, cost-based rates, should be of paramount importance and provide the primary guidance to utilities on rate structure and policy. However, it is important that the City provides its customers with a proper price signal as to what their consumption is costing. This goal may be approached through rate level and structure. When developing the proposed rate designs, all the above-listed criteria can be taken into consideration. However, it should be noted that it is difficult, if not impossible, to design a rate that meets all the goals and objectives listed above. For example, it may be difficult to design a rate that takes into consideration the customer's ability to pay, and one which is costbased. In designing rates, there are always trade-offs between the goals and objectives and a delicate balance must always be struck.

3.4.2 Present and Proposed Sewer Rate Design
The City's rate structure is an annual fixed charge for all customers, and only the units and the level of rate are unique to each class. In developing the proposed rates, the current rate structure was maintained and only the level of the rates was adjusted to reflect the revenue target for the proposed five-year rate setting period. As noted, the proportionality, and calculation of the various rates, are maintained based on the review.of the flow assumptions. The annual fixed charges were adjusted to maintain revenue sufficiency and to maintain equity between customers over the five-year period.

Provided below in Table 3 - 3 is a summary of the present and proposed annual rates the City's sewer customers. The proposed rate is calculated by taking the rate for Residential (which is assumed to be 1 EDU) and multiplying it by the current EDU ratios. The proposed rates for subsequent years were by the annual rate adjustment developed in the revenue requirement analysis and shown in Table 3 - 4.

Sewer Rate Study 24
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Table 3 - 4
P.resent and Proposed Annual Sewer Rates
Proposed
Present FY 2021· FY 2022· FY 2023- FY 2024· FY 2025-
Customer Class Billing Unit Rates 22 23 24 25 26
Residential Dwelling Unit $873.00 $955.95 $1,046.75 $1,125.25 $1,159.00 $1,193.75 Commercial
Public Shower Per Shower $289.80 $317.35 $347.50 $373.55 $384.75 $396.30 Hotel Per Room 480.15 525.75 575.70 618.90 637.45 656.55 Laundry Per Machine 1,178.55 1,290.55 1,413.10 1,519.10 1,564.65 1,611.55 Shop/ Office Account 873.00 955.95 1,046.75 1,125.25 1,159.00 1,193.75 Other Combined Shop/ 1,000 sq. ft. 558.70 611.80 669.90 720.15 741.75 763.95 Office
Take-out Restaurant Account 1,325.20 1,451.10 1,588.95 1,708.10 1,759.35 1,812.10 Church Account 1,764.90 1,932.60 2,116.15 2,274.85 2,343.10 2,413.35 Bar/ Restaurant (<100) Account 2,624.95 2,874.35 3,147.40 3,383.40 3,484.90 3,589.40 Bar/ Restaurant (>100) Account 3,925.05 4,298.00 4,706.25 5,059.20 5,210;90 5,367.15 The proposed sewer rate design is a fixed annual charge based on the customer classification.

The proposed sewer rates maintain the current rate structure. At the present rates, a typical residential customer would pay $873.00 per year. Under the proposed rates, the same customer would pay $955.95 in FY 2021-22 reaching $1,193.75 by FY 2025-26. Bill comparisons are included within the technical appendices to show the range of impacts to customers based on various consumption levels.

3.5 Summary of the Sewer Rate Study Update
This completes the analysis for the City's sewer utility. Based on the operating and capital needs, it is recommended that rates be increased annually by 7.0% from FY 2021-22 to FY 2022-23, 3.5% in FY 2023-24, and by 3.0% annually from FY 2024-25 to FY 2025-26. The City will continue to monitor the need for future adjustments and implement rates that reflect the costs incurred to provide sewer services. As noted, the data typically used to establish the customer relationships, in this case metered water consumption, is not available. Given this, industry standard flow rates were used to establish the relationships between the customer classes of service. Full and complete technical appendices of the development of the comprehensive rate study and the proposed rate adjustments can be found in Appendix A of this report.

Sewer Rate Study 25
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 4 Saltwater Rate Study

4.1 Introduction
This section of the report provides for the development of the saltwater rate study. The saltwater utility is utilized to flush the toilets within the City's service area to displace the demand for potable water. Similar to the sewer rate study, a revenue requirement, cost of service, and rate design analyses were conducted for the City's saltwater utility. One of the main objectives of the saltwater rate study is to develop cost-based rates while attempting to minimize the impacts to the utility's customers. Provided below is a detailed discussion of the technical analyses, along with the study findings, conclusions, and recommendations.

4.2 Determining the Saltwater Utility Revenue Requirement In developing the saltwater revenue requirement, like the sewer utility, it was assumed that the utility must financially "stand on its own" and be properly funded. As a result, the saltwater revenue requirement, as developed herein, assumes the full and proper funding needed to operate and maintain the system on a financially prudent basis.

4.2.1 Determining the Time Period and Approach
The first step in calculating the revenue requirement for the saltwater utility was to establish a time frame for the revenue requirement analysis. For this study, the revenue requirement was developed for the time period of FY 2020-21 - FY 2025-26. This was the same time period reviewed for the City's sewer utility
The second step in determining the revenue requirement for the City was to decide on the basis of accumulating costs. As discussed in the previous sections, the saltwater utility's revenue requirement was established using a "cash basis" approach, the same methodology that was used in the 2017 study and the same as used in the sewer utility revenue requirement analysis.

The primary financial inputs in this process were the City's historic saltwater customer billing records, adopted O&M budget, and capital improvement plan. Presented below is a discussion of the analytical steps and key assumptions contained in the development of the saltwater revenue requirement analysis.

4.2.2 Projection of Saltwater Revenues
The first step in developing the saltwater revenue requirement was to develop a projection of rate revenues which was based on the customer billing units and current rates and compared to the City's FY 2020-21 budget. Currently, there are three major saltwater customer classes of service: residential, commercial, and hotel. The majority of the City's saltwater rate revenues are derived from residential customers. In total, at present saltwater rates, the City is projected to receive approximately $718,000 in rate revenue in FY 2020-21. Over the planning horizon of this study, assuming no customer growth, which reflects the historical growth on the City's system, the total saltwater rate revenues are expected to remain flat.

Saltwater Rate Study 26
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study In addition to rate revenues, the saltwater utility also receives miscellaneous revenues. The utility is projected to receive approximately $91,000 in miscellaneous revenues in FY 2020-21.

Miscellaneous revenues are projected to also remain flat over the review period.

In total, including both saltwater rate and miscellaneous revenues, the utility's total projected revenues are expected to be approximately $809,000 in FY 2020-21 and, with no assumed growth, remain flat through FY 2025-26. A summary of the projection of miscellaneous and rate revenues is included in Appendix B, Exhibit 3.

4.2.3 Projection of Saltwater Operation and Maintenance Expenses Operation and maintenance (O&M) expenses are incurred by the utility to operate and maintain the existing saltwater utility services. The costs incurred in this area are expensed during the current year that are not capitalized or depreciated. To begin the process of projecting O&M expenses over the planning horizon, escalation factors were developed. Escalation factors were developed for the basic types of expenses the City incurs: labor, benefits, materials and supplies, utilities, insurance, and miscellaneous expenses. Consistent with the sewer utility, the escalation factors generally range from 1.5% to 5.0% per year based on historic inflationary factors. These escalation factors are shown in Exhibit 2 of Technical Appendix B.

Starting with the adopted FY 2020-21 budget, O&M expenses were projected over the five-year period (FY 2021-22 - FY 2025-26) based on the escalation factors described above. The total operation and maintenance expenses for the utility in FY 2020-21 are approximately $570,000 and increase to $702,000 by FY 2025-26. As noted in the sewer analysis, the labor assumptions for FY 2021-22 have been adjusted to reflect staffing costs at historical staffing levels. The detail of these expenses is shown in Exhibit 3 of Technical Appendix B.

4.2.4 . Projection of Saltwater Capital Improvement Projects and Funding The City's saltwater utility has several capital improvement projects planned over the study's time horizon. Over the planning period of FY 2020-21 - FY 2025-26, there are approximately $540,000 in projected capital projects averaging $140,000, annually. A summary of the capital funding plan developed for the saltwater utility is shown in Table 4 -1, including assumed funding sources for the capital plan. This can be found in further detail in Exhibit 4 in Technical Appendix B.
($000s}
FY 2020- FY 2021- FY 2022- FY 2023- FY 2024· FY 2025-
21 22 23 24 25 26
Total Capital Projects $65 $125 $140 $155 $170 $185
Other Funding Sources 0 0 0 0 0 0
Rate Funded Capital $65 $125 $140 $155 $170 $185
1-)~ I Saltwater Rat e Study 27
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Just as in the sewer capital funding plan, there are numerous funding sources that can be used to fund the capital projects. Among the methods that may be used to finance these saltwater capital improvement projects are long-term debt, reserves, and rates. Historically the City has primarily utilized rates and reserves to fund the capital improvements. As with the sewer utility, based on the rate transition plan developed as part of this revenue requirement, the City is projected to have adequate resources to provide funding for these capital projects. Provided below is a summary of the typical funding sources the City has used, and will continue to use, to fund the capital improvements over the next five year period.

Rate Funding
A general financial guideline states that, at a minimum, a utility should fund an amount equal to or greater than annual depreciation through rates. Annual depreciation expense reflects the current investment in saltwater plant being depreciated or "losing" its useful life. Therefore, this portion of plant investment needs to be replaced to maintain the existing level of infrastructure.

While the general financial guideline suggests funding an amount at least equal to the depreciation expense, consideration should also be given to funding within rates some amount greater than the annual depreciation expense to reflect the cost of replacement. The depreciation expense reflects the cost of infrastructure that was constructed, on average, 15 to 20 years ago. Funding for the replacement cost is prudent and minimizes costs/rates over time.

With that in mind, for this review period, the City has increased the level of rate funding for their renewal and replacement projects. The City has increased the annual rate funding for capital projects from $65,000 in FY 2020-21 to $185,000 by FY 2025-26. As a point of reference, the City's current annual depreciation expense for the saltwater system is approximately $55,000 as provided in the City's financial records for FY 2019-20. Given that, this study has greatly improved the funding for renewal and replacement capital projects but is not at a level of funding for full replacement cost.

Reserve Funding
Available reserve funds are another method of funding capital improvements. For the study, there are no assumed uses of reserves as a funding source for capital improvement projects. This reserve fund is typically funded by annual surpluses, just as in the sewer utility. Again, this allows the City to reserve funds for projects in later years when more or larger projects are undertaken.

This approach helps to mitigate future rate adjustments and smooth rates over time. Over the planning horizon, close attention should be given to the reserve balance as to not reduce fund balances below minimum targets described below.

Long-Term Debt
Another potential funding source for capital projects is the issuance of long-term debt. While there are certain advantages and disadvantages with the issuance of long-term debt, it is important to weigh all of them when deciding whether to issue or not. Long-term debt is typically not issued to fund renewal and replacement projects similar to those being proposed during this time period. Rather, long-term debt is often issued for major capital projects which have an immediate impact on rates and long-term debt is a financing mechanism to smoothly finance/fund the major capital project. For this analysis, no new long-term debt is assumed ov~r the planning period.
1-)"\ I Saltwater Rate Study
~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 28 4.2.5 Projection of Taxes and Transfer Payments
The City has no taxes and transfer payments at this time included in the saltwater utility.

4.2.6 Projection of Debt Service
The final component of the saltwater revenue requirement is debt service. At the present time, the City has one outstanding saltwater debt obligations to the solid waste fund and the annual payment is $18,000 per year through FY 2024-25. No additional long-term debt issuances were projected or anticipated within the saltwater capital improvement plan.

4.2. 7 Reserve Funding
This study has used reserve funding - or the transfer to/from reserve funds - to smooth and mitigate the rate adjustments in any particular year. Reserve funding can also be used to help build or replenish reserves if they have been drawn down in prior years. In this analysis, change in working capital is primarily used to balance revenue requirements to the proposed rate adjustments.

4.2.8 Summary of the Saltwater Revenue Requirement
Given the above projections of revenues and expenses, a summary of the revenue requirement for the saltwater utility can be developed. In developing the final revenue requirement, consideration was given to the financial planning considerations of the City. In particular, emphasis was placed on attempting to minimize rates, yet still have adequate funds to support the operational and capital expenses throughout the projected time period. Presented in Table 4 - 2 is a summary of the saltwater revenue requirement. A detailed analysis of the saltwater revenue requirement can be found in Exhibit 3 of Technical Appendix B.

Saltwater Rate Study 29
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Budgeted Projected
FY 2020- FY 2021- FY 2022- FY 2023- FY 2024- FY 2025-
21 22 23 24 25 26
Revenues
Rate Revenues $119 $719 $719 $719 $719 $719
Non-Operating Revenues 91 91 ~ 91 91 92
Total Revenues $809 $810 $810 $810 $810 $810
Expenses
O&M Expenses $570 $637 $653 $669 $685 $702
Taxes & Transfers 0 0 0 0 0 0
Rate Funded Capital 18 18 18 18 18 0
Net Debt Service 65 125 140 155 170 185
Change in Working Capital 156 47 ----22 23 11 17
Total Expenses $809 $827 $846 $865 $885 $904
Bal./(Defic.) of Funds $0 ($18) ($36) ($55) ($75) ($94) Def. as% of Rate Revenue 0.0% 2.5% 5.1% 7.7% 10.4% 13.1% Proposed Rate Adjustments 0.0% 2.5% 2.5% 2._5% 2.5% 2.5% Add'I Revenue with Rate Adj. $0 $18 $36 $55 $75 $94
Bal./(Def.) After Rate Adj. $0 $0 ($0) $0 $0 $0
It is important to note the annual deficiencies shown in Table 4 - 2 are cumulative. That is, any rate adjustments in the initial years will reduce the overall deficiency in the remaining years. The results of the revenue requirement analysis indicate, absent any rate adjustments, a deficiency of funds over the planning period (FY 2021-22 - FY 2025-26). The deficiency ranges from approximately $18,000 in FY 2017-18 to $94,000 in FY 2025-26. Over this time period, the overall deficiency in rates is approximately 13.1%. The level of this overall deficiency in rates is being driven by a variety of factors, but in large part it is a function of the need to strengthen the rate funding for capital infrastructure (i.e., annual renewal and replacement capital funding), as well as annual inflationary increases in O&M expenses. Based on the City's saltwater revenue requirement analysis, annual rate adjustments have been proposed over the five-year period.

The proposed rate transition plan in Table 4-2 is projected to adequately and fully fund the City's saltwater O&M, along with the planned capital improvement projects. At the same time, these proposed rate adjustments will strengthen the overall financial health of the Saltwater utility.

4.2.9 Review of the Saltwater Reserve Levels
Reserves are an important part of a utility's financial picture. There can be many different purposes for reserves. They are also a good indicator of the long-term financial health of the utility. The City's saltwater utility current has a reserve fund, just as in sewer. The reserve fund has a minimum ending fund balance target of 90 days of O&M expenses, which is approximately I-~~ I Saltwater Rate Study
J ~ City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 30 $141,000 for FY 2020-21. Over this planning period, the City is projected to have reserve levels below this minimum target. Over the fiveSaltwater Utility - Reserve Funds year period reserves slowly increase $3so,ooo .,----------------- towards meeting the target minimum $250,000
$150,000
$100,000
$50,000
FY 2020·21 FY 2021.22 FY 2022-23 FY 2023-H FY 2024-25 FY 2025-26 - Soltwater Fund . 112 - - - Ta rget: 90 doys of O&M
reserve fund of 90 days of O&M expenses.

4.2.10 Revenue
Consultant's Saltwater
Requirements
Recommendations
Based on the City's revenue requirement
analysis the proposed overall saltwater
rate adjustment is 2.5% annually from FY
2021-22 through FY 2025-26. These
proposed rate adjustments are needed to
fully fund the projected operating costs of·
the utility, along with the capital
improvement plan.

4.3 Development of the Saltwater Cost of Service
Much in the same manner as for sewer, the saltwater cost of service analysis was reviewed regards to cost basis and the proportionality as was completed in 2017. Saltwater services are not metered by the City. Given this, an approach was developed to review the estimated flows by customer type. Similar to the sewer analysis, the study reviewed the assumed flow generated by each customer class and their related contribution to flows from saltwater use to flush toilets.

Based on industry sewer flow information, as saltwater flow data is not available as it is not widely used for these types of services, the flow assumptions for the different customer classes were developed. The City has an established rate for residential customers (per account), and commercial and hotels (per toilet). Given the current flow assumptions, which reflect industry standard sewer flow ratios, the current ratios were maintained. Given this, the City's proposed saltwater rates can be developed.

4.4 Development of the Saltwater Rate Designs
The final step of the rate study process is the design of saltwater rates to collect the desired levels of revenues, based on the results of the revenue requirement. In reviewing saltwater rate designs, consideration is given to the level of the rates and the structure of the rates.

4.4.1 Rate Design Goals and Objectives
Prudent rate administration dictates that several crit~ria must be considered when setting utility rates. These rate setting criteria were reviewed within the sewer rate design subsection of the report (Section 3.4.1). The saltwater utility utilized these same rate design goals and objectives in reviewing the present and proposed saltwater rates.

Saltwater Rate Study 31
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study

4.4.2 Present and Proposed Saltwater Rates
The City's current saltwater rate structure is relatively straight-forward. It is composed of an annual fixed rate based on the customers' class of service. The City has specific service areas for saltwater service and so it is only available to a limited number of customers. Given the average rate per billing unit, the proposed rates can be developed. However, as noted in the cost of service discussion, the current ratios have been maintained given the changes in the 2017 study, and current industry flow rates. Presented below in Table 4 - 3 is a summary of the present and proposed annual saltwater rates.

Table4-3
Present and Proposed Annual Saltwater Rates
Billing Present Proposed
Unit Rates FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Residentjal Dwelling Unit $265.60 $272.30 $279.10 $286.10 $293.25 $300.60 Commercial Toilet/Urinal $265.60 $272.30 $279.10 $286.10 $293.25 $300.60 Hotel Toilet/Urinal $146.10 $149.75 $153.50 $157.35 $161.30 $165.35

4.5 Summary of the Saltwater Rate Study Update
This completes the analysis for the City's saltwater rate study. The proposed rates were developed using "generally accepted" rate making methods and principles. As noted, the data typically used to establish the customer relationships, in this case metered saltwater consumption, is not available. Given this, industry standard sewer flow rates were used to establish the relationships between the customer classes of service. The proposed saltwater rates for FY 2021-22 through FY 2025-26 a re needed to adequately support the operating and capital needs of the City's saltwater system. Adoption of the proposed rates are projected to provide adequate funding for the saltwater utility over the planning period, while financial positioning the utility anticipated future capital and operation needs. Even with these proposed annual adjustments, it is prudent for the City to annually evaluate the saltwater rates to confirm their ability to prudently fund O&M expenses and maintain key financial metrics.

Sa ltwater Rate Study 32
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 5 Solid Waste Rate Study

5.1 Introduction
This section describes the develo'pment of the rate study for the City's solid waste utility. The technical analysis undertaken in this section of the study is similar to that conducted for the City's sewer and saltwater utilities.

5.2 Determining the Solid Waste Revenue Requirement
As with the sewer and saltwater analyses, in developing the solid waste revenue requirement, it was assumed the solid waste utility must financially "stand on its own" and be properly funded.

As a result, the revenue requirement as developed herein assumes the full and proper funding needed to operate and maintain the system on a financially sound and prudent basis. This includes maintaining adequate reserve levels, and meeting other applicable industry standard financial metrics (e.g., debt service coverage). The following discussion provides more detail regarding the development of the solid waste revenue requirement and rate design analysis.

5.2.1 Determining the Time Period and Approach
To begin calculating the revenue requirement for the solid waste utility, a time frame for the revenue requirement analysis must be established. For this study, the revenue requirement was developed for the projected time period of FY 2022-21 through FY 2025-26. This time period is identical to that used for the sewer and saltwater analyses.

The second step in determining the revenue requirement was to decide on the basis of accumulating costs. As with the other revenue requirement analyses, a "cash basis" methodology was utilized.

The primary financial inputs in this process were the City's solid waste billing records, FY 2020- 21 adopted operating budget, and capital improvement plan. The following sections provide a detailed discussion of the analytical steps and key assumptions contained in the development of the projections of the City's solid waste revenues and expenses.

5.2.2 Projection of Solid Waste Revenues
The City receives revenue from two primary sources, rate revenue and miscellaneous revenue.

The solid waste rate revenues are based on the current rate structure and collected on an annual basis, in the same manner as the sewer and saltwater utilities. Other miscellaneous revenue includes items such as construction debris, grease removal, and other various revenues.

The first step in developing the revenue requirement was to develop a projection of solid waste rate revenues, at present rate levels, which was taken from the City's FY 2020-21 budget. In total, using the present solid waste rates, the City is projected to receive approximately $1.8 million annually in rate revenues in FY 2020-21 through FY 2025-26 based on flat annual customer growth
Solid Waste Rate Study 33
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study In addition to rate revenues, the City also receives a minor amount of miscellaneous revenues.

For FY 2020-21, the projected miscellaneous revenues are approximately $125,000.

Miscellaneous revenues are projected to remain relatively flat over the review period and are estimated to be approximately $124,000 by FY 2025-26.

On a combined basis, considering the rate revenues along with miscellaneous revenues, the City's total projected solid waste revenues are expected to be approximately $2.0 million annually through FY 2025-26. Exhibit 3 of Technical Appendix C provides the detail of the various sources of revenues for the City's Solid Waste utility.

5.2.3 Projection of Solid Waste Operation and M aintenance Expenses Operation and maintenance (O&M) expenses are incurred by the City to operate and maintain the solid waste system. The costs incurred in this area are expensed during the current year and are not capitalized or depreciated. In general, O&M expenses are grouped into functional categories. To begin the process of projecting O&M expenses over the planning horizon, escalation factors were developed. Escalation factors were developed for the basic types of expenses incurred: salaries, benefits, materials and supplies, utilities, equipment, and miscellaneous expenses. Escalation factors were projected based on historic inflationary trends and assumed to be approximately 1.5% - 5.0% per year. These escalation factors are consistent with those used in the sewer and saltwater revenue requirement analyses. The escalation factors used in the projection of O&M expenses can be found in Exhibit 2 of Technical Appendix C in detail.

Given the adopted budget for FY 2020-21 O&M expenses, the O&M expenses were escalated based on the previously mentioned escalation factors. The total operation and maintenance expenses are projected to be approximately $2.0 million in FY 2020-21. The City's solid waste O&M expenses are projected to increase to approximately $2.7 million by FY 2025-26 as a result of assumed inflation over the time period. Additionally, starting in FY 2021-22 and continuing through FY 2023-24, the City is anticipated to spend $100,000 annually for landfill expansion over and abov FY 2020-21 budget levels. In addition, additional labor costs are included in FY 2021-22 to reflect historical staffing levels. The City was also recently notified that the cost of the sanitation contract would be increasing due to unfunded mandates recently enacted by the State. The projection of O&M expenses can be found in Exhibit 3 ofTechnical Appendix C in detail.

5.2.4 Projection of Solid Waste Capital Improvement Projects and Funding At this time, the City's solid waste utility does not have any planned annual capital improvements over the review period. This is primarily due to the fact that the City contract's the solid waste collection and disposal services. This means that the City does not have the financial burden of maintaining the equipment for solid waste collection and transportation. Although there are no capital projects during the review period, the City will continue to be in a financial position that allows them the flexibility to fund future capital needs if necessary.

5.2.5 Projection of Taxes and Transfer Payments
As with the City's sewer and saltwater utility, there were no taxes paid or transfers identified for the solid waste utility over the review period.

I-)~ I Solid Wast e Rate Study
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study 34 5.2.6 Projection of Debt Service
At the present time, there are no outstanding solid waste debt service obligations. Additionally, no new debt issues are projected during the projected time period.

5.2. 7 Reserve Funding
This study has used reserve funding, that is the transfer of reserve funds into or out of reserves, in order to smooth and mitigate the rate adjustments in any particular year. Reserve funding can also be used to help build or replenish reserves if they have been drawn down in prior years. In the solid waste analysis, the reserve funding has primarily been used to maintain target reserve levels.

5.2.8 Summary of the Solid Waste Revenue Requirement
Given the above projections of revenues and expenses, a summary of the revenue requirement for the City's solid waste utility can be developed. In developing the revenue requirement, consideration was given to the financial planning considerations. In particular, emphasis was placed on attempting to minimize rate impacts, yet still have adequately fund the solid waste operational activities and capital projects throughout the projected time period. Presented in Table 5 - 1 is a summary of the solid waste revenue requirement. The detailed data and assumptions used to develop the revenue requirement are provided in Exhibit 2 and 3 of Technical Appendix C.

Solid Waste Rate Study 35
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Table 5-1
Summary of tlie Solid Waste Revenue Requirements ($000s} . . . . . FY 2021- FY 2022- FY 2024- FY 2025-
21 22 23 24 25 26
Revenues
Rate Revenues $1,837 $1,837 $1,837 $1,837 $1,837 $1,837 Non-Operating Revenues 125 124 123 123 123 124
Total Revenues $1,962 $1,961 $1,960 $1,960 $1,960 $1,961 Expenses
O&M Expenses $2,033 $2,346 $2,555 $2,628 $2,603 $2,681
Taxes & Transfers 200 269 279 294 316 349
Net Debt Service 0 0 0 0 0 0
Reserve Funding (271} (295} {88} 73 163 141
Total Expenses $1,962 $2,319 $2,746 $2,995 $3,082 $3,172 Bal./(Def.) of Funds $0 ($358) ($786) ($1,035) ($1,122) ($1,210) Def. as% of Rate Revenue 0.0% 19.5% 42.8% 56.4% 61.1% 65.9% Proposed Rate Adjustments 0.0% 19.5% 19.5% 9.5% 3.0% 3.0% Add'I Revenue with Rate Adj. $0 $358 $786 $1,035 $1,122 $1,210 Bal./(Def.) After'Rate Adj. $0 $0 $0 $0 $0 $0
In reviewing Table 5 - 1, the overall solid waste utility deficiency is approximately 65.9%. The deficiency in FY 2021-22 is approximately $358,000 increases by FY 2025-26 to an estimated $1.2 million. A major driver of the annual deficiencies is the increase in the sanitation contact due to the unfunded mandate and future landfill expansion evaluation. The proposed solid waste rate adjustments are intended to provide adequate funding for annual operating needs of the solid waste utility. As a part of this financial plan, annual rate adjustments of 19.5% in FY 2021-22 through FY 2022-23, 9.5% in FY 2023-24, and 3.0% for FY 2024-25 through FY 2025-26 have been proposed.

Solid Waste Rate Study 36
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study Solid Waste Utility - Reserve Funds
$ 1,200,000 --------- - - - ---
$ 1,000,000 1---------------
$800,000
$600,000
$400,000
$200,000
$0
FY 2020-21 FY 2021·22 FY 2022-23 FY 2023-24 FY 2024-25 FY2025•26 - Solid Waste rund -131 - - - Tnrg~t: 90 daysof O&M

5.2.9 Review of the Solid Waste
Reserve Levels
Reserves are an important part of a utility's
financial health and there can be _many
different targets for reserves. The current
target is identified as 90 days of O&M which
is equal to $501,000 The above chart
illustrates that the reserve funds are
projected to remain above the target level
over the review period, with the exception
of FY 2022-23. The City should routinely
analyze their reserve levels to confirm and
maintain adequate levels.

5.2.10 Consultant's Solid Waste Revenue Requirement Recommendations Based upon the solid waste revenue requirement analysis developed herein, HDR has recommended annual rate increases for the solid waste utility. The recommended annual rate adjustments are 19.5% in FY 2021-22 through FY 2022-23, 9.5% for FY 2023-24, and 3.0% for FY 2024-25 and FY 2025-26. These proposed rate adjustments should allow the City to fully fund its operations and capital improvements going forward.

5.3 Development of the Solid Waste Cost of Service
Just as with the sewer and saltwater, the cost of service analysis developed in the 2017 Study and the assumptions were reviewed as part of this study. It is important to note, the City contracts for solid waste collection and disposal services. Consequently, the City does not have information available on customers in regards to the size of the solid waste container or the number of pick-ups. Given this, the information necessary to identify the cost components related to providing service to various types of customers is unavailable. It should also be noted that information on actual waste generation by customer type is limited, as most collection and disposal practices do not separate by customer type. For example, a utility typically does not have information on the average tonnage collected from an individual restaurant or grocery store. At best, some utilities may have total tonnage collected by residential or commercial in aggregate.

The City's solid waste rate structure is further complicated by the fact that a customer may not have a specified, or individual, solid waste disposal container. In many cases, multiple customers dispose of their waste in a single solid waste disposal container. As such, the solid waste contractor may collect waste multiple times a week, or even multiple times a day depending, on the need and activities in the area. Given this, it is difficult, if not impossible, to determine those customers that benefit from a specific container or need at the current time. As a result, the ratios utilized in the 2017 study were maintained as they are based on estimates of waste generation by customer type.

Solid Waste Rate Study 37
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study

5.4 Development of the Solid Waste Rate Designs
The final step of the rate study process is the design of solid waste rates to collect the desired levels of revenues and reflect overall proportionality between customers. In reviewing the rate designs, consideration is given to the level of the rates and the structure of the rates.

5.4.1 Rate Design Goals and Objectives
Prudent rate administration dict ates that several criteria must be considered when setting utility rates. The typical rate design goals and objectives for a solid waste utility are similar to t hose discussed for the sewer and saltwater utilities.

5.4.2 Present and Proposed Solid Waste Rate Designs
In developing the proposed rate designs, and as noted previously, t he City's existing solid waste rate structure was examined and analyzed. Based on t he analyses completed, rates were developed for FY 2021-22 to FY 2025-26 for each class of service. As noted in the prior cost of service discussion in t he 2017 Study, the rate structure was based on estimated waste generation given the lack of specific customer information and the sharing of containers by multiple customers.

Provided in Table 5 - 2 is a summary of the present and proposed annual solid waste rates.

Present FY 2021- FY 2022- FY 2024- FY 2025-
Units Rates 22 23 25 26
Residential (per DU) $559.51 $668.60 $799.00 $874.90 $901.15 $928.20 Res > 10 Units (per DU) 447.69 535.00 639.35 700.10 721.10 142.75 Shops/ Office {1000 sqft) 884.15 1,056.55 1,262.60 1,382.55 1,424.05 1,466.75 Grocer {1000 sqft) 2,652.45 3,169.70 3,787.80 4,147.65 4,272.10 4,400.25 Gathering Space {1000 sqft) 442.10 528.30 631.30 691.25 712.00 733.35 Restaurants< 100 seats (per acct) 3,536.60 4,226.25 5,050.35 5,530.15 5,696.05 5,866.95 Restaurants> 100 seats (per acct) 7,073.20 8,452.45 10,100.70 11,060.25 11,392.05 11,733.80 Restaurants - Take Out (per acct) 1,768.30 2,113.10 2,525.15 2,765.05 2,848.00 2,933.45 Hotel Room (per room) 213.23 254.80 304.50 333.45 343.45 353.75 Grease Removal (per gallon) 2.56 3.06 3.66 4.01 4.13 4.25

5.5 Summary of the Solid Waste Rate Study Update
This completes the analysis for the City's solid waste utility. The solid waste utility rate study has developed a financial plan for the full funding of operating and capital needs. The recommended annual rate adjustments are 19.5% annua lly in FY 2021-22 through FY 2022-23, 9.5% in FY 2023- 24, and followed by 3.0% annually in FY 2024-25 and FY 2025-26. A full and complete technical Solid Waste Rate Study 38
City of Avalon - Comprehensive Sewer, Saltwater, and Solid Waste Rate Study appendix of the development of the comprehensive solid waste rate study and the proposed rate adjustments can be found in Appendix C of this report.

5.6 Rate Adoption
Proposition 218 outlines a specific process to legally adopt and implement the proposed sewer, saltwater, and solid waste rates. The first requirement is that the rates must be cost-based and proportional, which is the purpose of completing the rate study. Once the proposed sewer, saltwater, and solid waste rates have been developed, a public process must be undertaken to adopt the proposed rates. This began with the presentation of the proposed rates to the Avalon City Council in April 2021. At this meeting, the City Council directed staff to mail the Proposition 218 notices -shown in the Proposition 218 Appendix- to the City's customers which outlines the proposed changes in rates. The notice also contains the time, date, and location of the public hearing, which is shown in the Approved Notice Appendix. The City Council then held a public hearing on June 1, 2021 to discuss the publicly noticed and proposed rates. Absent sufficient written protest by customers, the City Council moved to adopt the proposed sewer, saltwater, and solid waste rates as outlined in the customer notification over the next five-year period.

Solid Waste Rate Study 39
City of Avalon - Comprehensive Sewer, Saltwate,~ and Solid Waste Rate Study

City of Avalon
Sewer Cost of Service Study
Revenue Requirement Summary
Exhibit 1
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Revenue
Rate Revenues $2,512,821 $2,512,821 $2,512,821 $2,512,821 $2,512,821 $2,512,821 Non-Operating Revenues 204,661 204,727 205,084 206,037 206,598 206,881 ------- -----·- Total Revenues $2,717,482 $2',717,548 $2,717,904 $2,718,858 $2,719,419 $2,719,702 Expenses
Total Operations & Maintenance $2,397,847 $2,403,899 $2,460,348 $2,518,302 $2,577,805 $2,638,903 Taxes/ Transfers 0 0 0 0 0 0
Net Debt Service 48,354 48,354 48,354 48,354 48,354 0
Rate Funded Capital 250,000 350,000 375,000 400,000 425,000 500,000 Reserve Funding 21,281 91,193 198,310 217,002 222,388 226,936 Total Revenue Requirement $2,717,482 $2,893,446 $3,082,012 $3,183,658 $3,273,547 $3,365,839 Balance/(Deficiency) of Funds $0 ($175,897) ($364,108) ($464,800) ($554,129) ($646,137) Bal/(Def.) as a% of Rat e Rev. 0.0% 7.0% 14.5% 18.5% 22.1% 25.7% Proposed Rate Adjustment 0.0% 7.0% 7.0% 3.5% 3.0% 3.0%
Add'I Revenue from Adj. $0 $175,897 $364,108 $464,800 $554,129 $646,137 Tota l Bal./(Def.) of Funds $0 $0 $0 $0 $0 $0
Additional Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% DSC Ratio
Before Rate Adjustment 6.61 6.49 5.33 4.15 2.93 N/A
After Rate Adjustment 6.61 10.12 12.86 13.76 14.39 N/A
Avg Res Annual Bill $873.00 $934.11 $999.50 $1,034.48 $1,065.51 $1,097.48 Avg Res Monthly Bill $72.75 $77.84 $83.29 $86.21 $88.79 $91.46 Total Ending Balance $273,364 $217,556 $415,866 $598,868 $640,257 $712,193 1 of 14 05.28.2021
City of Avalon
Sewer Cost of Service Study
Exhibit 2
Escalation Factors
Budget Proj ected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Revenues
Customer Growth Calculated 0.0% 0.0% 0.0% 0.0% 0.0%
Consumption Growth 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Miscellaneous Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Expenses
Labor Budget 15.5% 3.0% 3.0% 3.0% 3.0%
Benefits - Medical Budget 5.0% 5.0% 5.0% 5.0% 5.0%
Benefib - Other Budget 3.5% 3.5% 3.5% 3.5% 3.5%
Materials & Supplies Budget 2.5% 2.5% 2.5% 2.5% 2.5%
Equipment Budget 3.5% 3.5% 3.5% 3.5% 3.5%
M iscellaneous Budget 1.5% 1.5% 1.5% 1.5% 1.5%
Ut il ities Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Insurance Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Flat Budget 0.0% 0.0% 0.0% 0.0% 0.0%
Interest 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
New Debt Service
low Interest l oans
Term in Years 20 20 20 20 20 20
Rate 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Revenue Bond
Term in Years 20 20 20 20 20 20
Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
2 of 14 05.28.2021
City of Avalon
Sewer Cost of Service Study Page 1 ofS
Exhibit3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-2S FY2025-26 Notes Revenues
Rate Revenues
Total Rate Revenues $2,512,821 $2,512,821 $2,512,821 $2,512,821 $2,S12,821 $2,512,821 As Customer Growth Non-Operating Revenues
Interest $1,161 $1,227 $1,584 $2,537 $3,098 $3,381 Calc'd on Oper. Balance Harbor Enterprise Fund 195,000 195,000 195,000 195,000 195,000 195,000 As Customer Growth Sewer Lateral Fee 8,500 8,500 8,500 8,500 8,500 8,500 As Miscellaneous Revenues Island Co Discharge Permit 0 0 0 0 0 0 As Miscellaneous Revenues Total Non-Operating Revenues $204,661 $204,727 $205,084 $206,037 $206,598 $206,881 Total Revenues $2,717,482 $2,717,548 $2,717,904 $2,718,858 $2,719,419 $2,719,702 Sewer Service
Salaries & Benefits
Salaries Regular $29,709 $34,314 $35,343 $36,403 $37,495 $38,620 As Labor FICA Retirement 4,287 4,437 4,592 4,753 4,919 5,092 As Benefits - Other CALPers Unfunded Liability PMT 4,020 4,161 4,306 4,457 4,613 4,774 As Benefits - Other Health / Life Insurance 2,380 2,499 2,624 2,755 2,893 3,038 As Benefits - Medical Workers Comp 1,351 1,419 1,489 1,564 1,642 1,724 As Benefits - Medical Unemployment Ins 594 624 655 688 722 758 As Benefits - Medical Clothing Allowance 0 0 0 0 0 0 As Benefits - Other
Total Salaries & Benefits $42,341 $47,453 $49,010 $50,620 $52,285 $54,006 M aintenance & Operations
Special Dept. Expense $500 $508 $515 $523 $531 $539 As Miscellaneous Utilities - General 5,000 5,150 5,305 5,464 5,628 5,796 As Utilities Utilities - Electricity 125,000 128,750 132,613 136,591 140,689 144,909 As Utilities Utilities - Gas/ Water/ Dump 150,000 154,500 159,135 163,909 168,826 173,891 As Utilities Miscellaneous Fees 15,000 15,225 15,453 15,685 15,920 16,159 As Miscellaneous Storm Damage 10,000 10,150 10,302 10,457 10,614 10,773 As Miscellaneous Emergency Maintenance 100,000 103,500 107,123 110,872 114,752 118,769 As Equipment Communications 3,000 3,045 3,091 3,137 3,184 3,232 As Miscellaneous Total Maintenance & Operations $408,500 $420,828 $433,536 $446,637 $460,144 $474,068 3 of 14 05.28.2021
City of Avalon
Sewer Cost of Service Study Page 2 o/5
Exhibit 3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY2023-24 FY 2024-25 FY 2025-26 Notes Contract Services
Professional Services $40,000 $46,200 $47,586 $49,014 $50,484 $51,999 As Labor Pro. Srvcs - Annual Permitting 172,000 63,525 65,431 67,394 69,415 71,498 As Labor Pro. Srvcs - H2S Control 50,000 57,750 59,483 61,267 63,105 64,998 As Labor Pro. Srvcs - Falconer 43,200 49,896 51,393 52,935 54,523 56,158 As Labor City Attorney Retainer 10,000 11,550 11,897 12,253 12,621 13,000 As Labor Environ Strategy Consultants 1,080,000 1,096,200 1,112,643 1,129,333 1,146,273 1,163,467 As M iscellaneous Total Contract Services $1,395,200 $1,325,121 $1,348,432 $1,372,195 $1,396,421 $1,421,119 Internal Services
General Insurance $·64,175 $66,100 $68,083 $70,126 $72,230 $74,397 As Insurance Admin Overhead 140,772 162,592 167,470 172,494 177,669 182,999 As Labor Total Internal Services $204,948 $228,693 $235,553 $242,620 $249,899 $257,395 Total Sewer Service $2,050,988 $2,022,094 $2,066,531 $2,112,072 $2,158,748 $2,206,589 Sewer Service Public Works
Salaries & Benefits
· Salaries Regular $128,497 $148,414 $152,867 $157,453 $162,177 $167,042 As Labor Overtime Regular 2,900 3,350 3,450 3,553 3,660 3,770 As Labor FICA Retirement 21,852 22,617 23,408 24,228 25,076 25,953 As Benefits - Other CALPers Unfunded Liability PMT 14,378 14,881 15,402 15,941 16,499 17,077 As Benefits - Other Health/ Life Insurance 33,116 34,772 36,511 38,336 40,253 42,266 As Benefits - Medical Workers Comp 5,975 6,274 6,587 6,917 7,263 7,626 As Benefits - Medical Unemployment Ins 2,628 2,759 2,897 3,042 3,194 3,354 As Benefits - Medical Other Personnel Services 0 0 0 0 0 0 As Benefits - Other Clothing Allowance 389 403 417 431 446 462 As Benefits - Other Total Salaries & Benefits $209,736 $233,470 $241,540 $249,902 $258,568 $267,549 Maintenance & Operations
Special Dept. Expense $500 $508 $515 $523 $531 $539 As Miscellaneous Miscellaneous Fees 15,000 15,225 15,453 15,685 15,920 16,159 As M iscellaneous Total Maintenance & Operations $15,500 $15,733 $15,968 $16,208 $16,451 $16,698 4of 14 05.28.2021
City of Avalon
Sewer Cost of Service Study Page3of5
Exhibit 3
Revenue Requirement
Budget Projected
FY2020-21 FY2021-22 FY2022-23 FY2023-24 FY 2024-25 FY 2025-26 Notes Contract Services
SWRCB - Waste Discharge Fee $0 $0 $0 $0 $0 $0 As Materials & Supplies SWRCB - Annual Audit SSMP 18,000 18,450 18,911 19,384 19,869 20,365 As Materials & Supplies Total Contract Services $18,000 $18,450 $18,911 $19,384 $19,869 $20,365 Internal Services
General Insurance $7,858 $8,094 $8,337 $8,587 $8,844 $9,110 As Insurance Admin Overhead 30,166 34,841 35,886 36,963 38,072 39,214 As Labor Equipment Lease Charges 30,600 35,343 36,403 37,495 38,620 39,779 As Labor Total Internal Services $68,623 $78,278 $80,626 $83,045 $85,536 $88,102 Total Sewer Service Public Works $311,859 $345,930 $357,045 $368,539 $380,424 $392,71S Sewe r Maintenance & Development
Salaries & Benefits $0 $0 $0 $0 $0 $0 As Labor
Contract Services 0 0 0 0 0 0 As Labor
WWTP - Maint. & Repair of Bldg. Grnds. 35,000 35,875 36,772 37,691 38,633 39,599 As Materials & Supplies Total Sewer Maintenance & Development $35,000 $35,875 $36,772 $37,691 $38,633 $39,599 Total Operations & Maintenance $2,397,847 $2,403,899 $2,460,348 $2,518,302 $2,577,805 $2,638,903 Taxes/ Transfers
$0 $0 $0 $0 $0 $0 As Miscellaneous
- Total Taxes/ Transfers $0 $0 $0 $0 $0 $0
5 of14 05.28.2021
City of Avalon
Sewer Cost of Service Study Page4 of5 Exhibit 3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY2022-23 FY 2023-24 FY2024-25 FY 2025-26 Notes Debt Service
lnterfund Loan $48,354 $48,354 $48,354 $48,354 $48,354 so Debt Schedule New SRF Loans 0 0 0 0 0 0 Cale @ 2.5% for 20 Yrs
New Revenue Bonds 0 0 0 0 0 0 Cale @ 5% for 20 Yrs
Total Debt Service $48,354 $48,354 $48,354 $48,354 $48,354 $0 Less Connection Fees $0 $0 $0 $0 $0 $0
Net Debt Service $48,354 $48,354 $48,354 $48,354 $48,354 $0 Rate Funded Capital $250,000 $350,000 $375,000 $400,000 $425,000 $500,000 $374,306 FY 2019-20 Depr.

Reserve Funding
To I (From} Sewer Fund - 107 $21,281 $91,193 $198,310 $217,002 $222,388 $226,936 To I (From} Sewer Capital Reserve Fund - 108 0 0 0 0 0 0 To I (From} WWTP Replacement Fund - 110 0 0 0 0 0 0
Total Reserve Funding $21,281 $91,193 $198,310 $217,002 $222,388 $226,936 Total Revenue Requirement $2,717,482 $2,893,446 $3,082,012 $3,183,658 $3,273,547 $3,365,839 Bal./(Def.} of Funds $0 ($175,897} ($364,108} ($464,800} ($554,129} ($646,137} Rate Adj. as a% of Rate Rev. 0.0% 7.0% 14.5% 18.5% 22.1% 25.7% Proposed Rate Adjustment 0.0% 7.0% 7.0% 3.5% 3.0% 3.0%
Months of Adjustment 12 12 12 12 12 12
Add'I Revenue from Adj. $0 $175,897 $364,108 $464,800 $554,129 $646,137 Total Bal./(Def.} of Funds $0 $0 $0 $0 $0 $0
Additional Rate Increase Needed 0.0% · 0.0% 0.0% 0.0% 0.0% 0.0% 6 of 14 05.28.2021
City of Avalon
Sewer Cost of Service Study Page 5 of5
Exhibit 3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY2024-25 FY 2025-26 Notes DSC Ratio
Before Rate Adjustment 6.61 6.49 5.33 4.15 2.93 N/A
After Rate Adjustment 6.61 10.12 12.86 13.76 14.39 N/A
Avg Res Annual Bill $873.00
After Proposed Rate Adjustment $873.00 $934.11 $999.50 $1,034.48 $1,065.51 $1,097.48 Annual$ Change 61.11 65.39 34.98 31.03 31.97
Cumulative Change 61.11 126.50 161.48 192.51 224.48
Avg Res Monthly Bill $72.75
After Proposed Rate Adjustment $72.75 $77.84 $83.29 $86.21 $88.79 $91.46 Annual $ Change 5.09 5.45 2.92 2.59 2.66
Cumulative Change 5.09 10.54 13.46 16.04 18.71
Reserve Funds -- - Total Beginning Balance $191,083 $273,364 $217,556 $415,866 $598,868 $640,257 Sewer Fund - 107
Beginning Balance $191,083 $273,364 $217,556 $415,866 $598,868 $640,257 Plus: To Reserves 82,281 91,193 198,310 217,002 222,388 226,936 lnterfund Loan Proceeds 0 0 0 0 0 0
Less: Uses of Funds 0 (147,000) 0 (34,000) (181,000) (155,000) Ending Balance I $273,364 $217,556 $415,866 $598,868 $640,257 $712,193 Target: 90 days of O&M $591,250 $592,742 $606,661 $620,951 $635,623 $650,688 Sewer Capital Reserve Fund - 108
Beginning Balance $0 $0 $0 $0 $0 $0
Plus: To Reserves 0 0 0 0 0 0
Less: Uses of Funds 0 0 0 0 0 0
Ending Balance $0 $0 $0 $0 $0 $0
WWTP Replacement Fund - 110
Beginning Balance $0 $0 $0 $0 $0 $0
Plus: To Reserves 0 0 0 0 0 0
Less: Uses of Funds 0 0 0 0 0 0
Ending Balance $0 $0 $0 $0 $0 $0
Total Ending Balance $273,364 $217,556 $415,866 $598,868 $640,257 $712,193 7 of 14 05.28.2021
City of Avalon
Sewer Cost of Service Study I Inflation 2.7% I Page 1 of 1 Exhibit 4
Capital Improvement Plan
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Total Sewer Cap Im prov. - Maint & Dev $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $300,000 Sewer Cap lmprov. - P / W 139,000 447,000 160,000 384,000 556,000 330,000 2,016,000 Total Capital Projects $189,000 $497,000 $210,000 $434,000 $606,000 $380,000 $2,316,000 Fut ure Unidentified Projects $0 $0 $165,000 $0 $0 $275,000 $440,000 To Operating Reserve $61,000 $0 $0 $0 $0 $0 $61,000
Total Capital Improvement Projects $250,000 $497,000 $375,000 $434,000 $606,000 $655,000 $2,817,000 Less: Outside Funding Sources
Sewer Fund - 107 $0 $147,000 $0 $34,000 $181,000 $155,000 $517,000 Sewer Capital Reserve Fu nd - 108 0 0 0 0 0 0 0
WWTP Replacement Fund -110 0 0 0 0 0 0 0
New SRF Loans 0 0 0 0 0 0 0
New Revenue Bonds 0 0 0 0 0 0 0
Total Outside Funding Sources $0 $147,000 $0 $34,000 $181,000 $155,000 $517,000 Rate Funded Capital $250,000 $350,000 $375,000 $400,000 $425,000 $500,000 $2,300,000 8 of 14 05.28.2021
Present FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Rate Adjustment Rates 7.0% 7.0% 3.5% 3.0% 3.0%
Residential $873.00 $934.10 $999.50 $1,034.50 $1,065.55 $1,097.50 Commercial
Public Shower $289.80 $310.10 $331.80 $343.40 $353.70 $364.30 Hotel 480.15 513.75 549.70 568.95 586.05 603.60
Laundries "1,178.55 1,261.05 1,349.30 1,396.55 1,438.50 1,481.60 Shops/ Offices 873.00 934.10 999.50 1,034.50 1,065.55 1,097.50 Other Combined Shops/Offices * 558.70 597.80 639.65 662.05 681.95 702.35 Take-out Restaurant 1,325.20 1,417.95 1,517.20 1,570.35 1,617.50 1,666.00 Churches 1,764.90 1,888.40 2,020.65 2,091.40 2,154.15 2,218.75 Bar/ Restaura nt {<100) 2,624.95 2,808.65 3,005.30 3,110.55 3,203.90 3,300.00 Bar/ Restaurant(> 100) 3,925.05 4,199.75 4,493.80 4,651.15 4,790.75 4,934.40 *For multiple shops and/or office on a single parcel*
9 of14 05.28.2021
Customer Class
Residential
Public Shower
Hotel
Laundries
Shops/ Offices
Combined Shops/ Offices
Take-out Restaurant
Churches
Bar/ Restaurant (<100)
Bar/ Restaurant (>100)
City of Avalon
Sewer Cost of Service Study
All Customer Rates
Proposed Rates: Year 1- FY 2021-22
Present Proposed
Rates Rates
$72.75 $77.84

24.15 25.84

40.01 42.81

98.21 105.09

72.75 77.84

46.56 49.82
110.43 118.16
147.08 157.37
218.75 234.05
327.09 349.98
Difference
$- I %
$5.09 7.0%

1.69 7.0%

2.80 7.0%

6.88 7.0%

5.09 7.0%

3.26 7.0%

7.73 7.0%

10.29 7.0%

15.31 7.0%

22.89 7.0%
Present Rates Proposed Rates
Class Unit Rate Class Rate
Residential (DU) $72.75 Residential $77.84
Public Shower (per shower) 24.15 Public Shower 25.84
Hotel (per room) 40.01 Hotel 42.81
Laundries (per wash unit) 98.21 Laundries 105.09
Shops/ Offices (each) 72.75 Shops/ Offices 77.84
Combined Shops/ Offices ($ I 1,000 sq ft) 46.56 Combined Shops/ Offices 49.82 Take-out Restaurant (each) 110.43 Take-out Restaurant 118.16 Churches (each) 147.08 Churches 157.37
Bar/ Restaurant (<100) (each) 218.75 Bar/ Restaurant (<100) 234.05 Bar/ Restaurant (>100) (each) 327.09 Bar/ Restaurant (>100) 349.98 10 of 14 05.28.2021
Customer Class
Residential
Public Shower
Hotel
Laundries
Shops/ Offices
Combined Shops/ Offices
Take-out Restaurant
Churches
Bar/ Restaurant (<100)
Bar/ Restaurant (>100)
City of Avalon ,
Sewer Cost of Service Study
All Customer Rates
Proposed Rates: Year 2 - FY 2022-23
Present Proposed
Rates Rates
$77.84 $83.29

25.84 27.65

42.81 45.81
105.09 112.44

77.84 83.29

49.82 53.30
118.16 126.43
118.16 126.43
157.37 168.39
234.05 250.44
Difference
$ I %
$5.45 7.0%

1.81 7.0%

3.00 7.0%

7.35 7.0%

5.45 7.0%

3.49 7.0%

8.27 7.0%

8.27 7.0%

11.02 7.0%

16.39 7.0%
Present Rates Proposed Rates
Class Unit Rate Class Rate
Residential (DU} $77.84 Residential $83.29
Public Shower (per shower) 25.84 Public Shower 27.65
Hotel (per room) 42.81 Hotel 45.81
Laundries (per wash unit) 105.09 Laundries 112.44
Shops / Offices (each) 77.84 Shops/ Offices 83.29
Combined Shops/ Offices ($ I 1,000 sq ft) 49.82 Combined Shops/ Offices 53.30 Take-out Restaurant (each) 118.16 Take-out Restaurant 126.43 Churches (each) 157.37 Churches 168.39
Bar/ Restaurant (<100) (each) 234.05 Bar/ Restaurant (<100) 250.44 Bar/ Restaurant (>100) (each) 349.98 Bar/ Restaurant (>100) 374.48 11 of 14 05.28.2021
Customer Class
Residential
Public Shower
Hotel
Laundries
Shops/ Offices
Combined Shops/ Offices
Take-out Restaurant
Churches
Bar/ Restaurant (<100)
Bar/ Restaurant (>100)
City of Avalon
Sewer Cost of Service Study
All Customer Rates
Proposed Rates: Year 3 - FY 2023-24
Present Proposed
Rates Rates
$83.29 $86.21

27.65 28.62

45.81 47.41
112.44 116.38

83.29 86.21

53.30 55.17
126.43 130.86
168.39 174.28
250.44 259.21
374.48 387.60
Difference
$ I %
$2.92 3.5%

0.97 3.5%

1.60 3.5%

3.94 3.5%

2.92 3.5%

1.87 3.5%

4.43 3.5%

5.90 3.5%

8.77 3.5%

13.11 3.5%
Present Rates Proposed Rates
Class Unit Rate Class Rate
Residential (DU) $83.29 Residential $86.21
Public Shower (per shower) 27.65 Public Shower 28.62
Hotel (per room) 45.81 Hotel 47.41
Laundries (per wash unit) 112.44 Laundries 116.38
Shops/ Offices (each) 83.29 Shops/ Offices 86.21
Combined Shops/ Offices ($ I 1,000 sq ft) 53.30 Combined Shops/ Offices 55.17 Take-out Restaurant (each) 126.43 Take-out Restaurant 130.86 Churches (each) 168.39 Churches 174.28
Bar/ Restaurant (<100) (each) 250.44 Bar/ Restaurant (<100) 259.21 Bar/ Restaurant (>100) (each) 374.48 Bar/ Restaurant (>100) 387.60 12 of 14 05.28.2021
Customer Class
Residential
Public Shower
Hotel
Laundries
Shops / Offices
Combined Shops/ Offices
Take-out Restaurant
Churches
Bar/ Restaurant (<100)
Bar/ Restaurant (>100)
City of Avalon
Sewer Cost of Service Study
All Customer Rates
Proposed Rates: Year 4 - FY 2024-25
Present Proposed
Rates Rates
$86,21 $88.80

28.62 29.48

47.41 48.84
116.38 119.88

86.21 88.80

55.17 56.83
130.86 134.79
174.28 179.51
259.21 266.99
387.60 399.23
Difference
$ I %
$2.59 3.0%

0.86 3.0%

1.43 3.0%

3.50 3.0%

2.59 3.0%

1.66 3.0%

3.93 3.0%

5.23 3.0%
7,78 3.0%

11.63 3.0%
Present Rates Proposed Rates
Class Unit Rate Class Rate
Residential (DU) $86.21 Residential $88.80
Public Shower (per shower) 28.62 Public Shower 29.48
Hotel (per room) 47.41 Hotel 48.84
Laundries (per wash unit) 116.38 Laundries 119.88
Shops / Offices (each) 86.21 Shops/ Offices 88.80
Combined Shops/ Offices ($ I 1,000 sq ft) 55.17 Combined Shops/ Offices 56.83 Take-out Restaurant (each) 130.86 Take-out Restaurant 134.79 Churches (each) 174.28 Churches 179.51
Bar/ Restaurant (<100) (each) 259.21 Bar/ Restaurant (<100) 266.99 Bar/ Restaurant (>100) (each) 387.60 Bar/ Restaurant (>100) 399.23 13 of 14 05.28.2021
Customer Class
Residential
Public Shower
Hotel
Laundries
Shops / Offices
Combined Shops/ Offices
Take-out Restaurant
Churches
Bar/ Restaurant (<100)
Bar/ Restaurant (>100)
City of Avalon
Sewer Cost of Service Study
All Customer Rates
Proposed Rates: Year 5 - FY 2025-26
Present Proposed
Rates Rates
$88.80 $91.46

29.48 30.36

48.84 50.30
119.88 123.47

88.80 91.46

56.83 58.53
134.79 138.83
179.51 184.90
266.99 275.00
399.23 411.20
Difference
$ %
$2.66 3.0%

0.88 3.0%

1.46 3.0%

3.59 3.0%

2.66 3.0%

1.70 3.0%

4.04 3.0%

5.38 3.0%

8.01 3.0%

11.97 3.0%
Present Rates Proposed Rates
Class Unit Rate Class Rate
Residential (DU) $88.80 Residential $91.46
Public Shower (per shower) 29.48 Public Shower 30.36
Hotel (per room) 48.84 Hotel 50.30
Laundries (per wash unit) 119.88 Laundries 123.47
Shops / Offices (each) 88.80 Shops/ Offices 91.46
Combined Shops/ Offices ($ I 1,000 sq ft) 56.83 Combined Shops/ Offices 58.53 Take-out Restaurant (each) 134.79 Take-out Restaurant 138.83 Churches (each) 179.51 Churches 184.90
Bar/ Restaurant ( <100) (each) 266.99 Bar/ Restaurant (<100) 275.00 Bar/ Restaurant (>100) (each) 399.23 Bar/ Restaurant (>100) 411.20 14 of 14 05.28.2021

City of Avalon
Saltwater Cost of Service Study
Revenue Requirement Summary
Exhibit 1
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Revenue
Rate Revenues $718,504 $718,504 $718,504 $718,504 $718,504 $718,504 Non-Operating Revenues 90,521 91,028 91,234 91,381 91,468 91,540 --------------- Total Revenues $809,024 $809,532 $809,738 $809,885 $809,971 $810,043 Expenses
Total Operations & Maintenance $570,284 $637,264 $652,790 $668,755 $685,173 $702,059 Taxes I Transfers 0 0 0 0 0 0
Net Debt Service 18,023 18,023 18,023 18,023 18,023 0
Rate Funded Capital 65,000 125,000 140,000 155,000 170,000 185,000 Reserve Funding 155,717 47,207 35,299 23,353 11,365 17,401 Total Revenue Requirement $809,024 $827,494 $846,112 $865,131 $884,561 $904,461 Balance/(Deficiency) of Funds $0 ($17,963) ($36,374) ($55,246) ($74,590) ($94,417) Bal/(Def.) as a % of Rate Rev. 0.0% 2.5% 5.1% 7.7% 10.4% 13.1% Proposed Rate Adjustment 0.0% 2.5% 2.5% 2.5% 2.5% 2.5%
Add'I Revenue from Adj. $0 $17,963 $36,374 $55,246 $74,590 $94,417 Total Bal/(Def.) of Funds $0 $0 ($0) $0 $0 ($0)
Additional Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% DSC Ratio
Before Rate Adjustment 13.25 9.56 8.71 7.83 6.92 N/A
After Rate Adjustment 13.25 10.55 10.73 10.90 11.06 N/A Avg Res Annual Bill $265.60 $272.24 $279.05 $286.02 $293.17 $300.50 Avg Res Monthly Bill $22.13 $22.69 $23.25 $23.84 $24.43 $25.04 Total Reserve Funds $182,005 $229,212 $264,511 $287,864 $299,229 $316,630 1 of 13 05.28.2021
City of Avalon
Saltwater Cost of Service Study
Exhibit 2
Escalation Factors
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Revenues
Customer Growth Calculated 0.0% 0.0% 0.0% 0.0% 0.0%
Consumption Growth 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Miscellaneous Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Expenses
Labor Budget 30.0% 3.0% 3.0% 3.0% 3.0%
Benefits - Medical Budget 5.0% 5.0% 5.0% 5.0% 5.0%
Benefits - Other Budget 3.5% 3.5% 3.5% 3.5% 3.5%
Materials & Supplies Budget 2.5% 2.5% 2.5% 2.5% 2.5%
Equipment Budget 3.5% 3.5% 3.5% 3.5% 3.5%
Miscellaneous Budget 1.5% 1.5% 1.5% 1.5% 1.5%
Utilities Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Insurance Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Flat Budget 0.0% 0.0% 0.0% 0.0% 0.0%
Interest 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
New Debt Service
Low Interest Loans
Term in Years 20 20 20 20 20 20
Rate 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Revenue Bond
Term in Years 20 20 20 20 20 20
Rate 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%
2 of 13 05.28.2021
City of Avalon
Saltwater Cost of Service Study Page 1 af 4
Exhibit3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Notes Revenues
Rate Revenues
Total Rate Revenues $718,504 $718,504 $718,504 $718,504 $718,504 $718,504 As Customer Growth Non-Operating Revenues
Interest $521 $1,028 $1,234 $1,381 $1,468 $1,540 Calc'd on Oper. Balance Harbor Enterprise Fund 90,000 90,000 90,000 90,000 90,000 90,000 As Customer Growth Miscellaneous Revenue 0 0 0 0 0 0 As Miscellaneous Revenues Total Non-Operating Revenues $90,521 $91,028 $91,234 $91,381 $91,468 $91,540 Total Revenues $809,024 $809,532 $809,738 $809,885 $809,971 $810,043 Salt Water Administration
Salaries & Benefits
Salaries Regular $21,221 $27,587 $28,414 $29,267 $30,145 $31,049 As Labor FICA Retirement 3,062 3,169 3,280 3,395 3,514 3,637 As Benefits - Other CALPers Unfunded Liability PMT 2,871 2,971 3,075 3,183 3,295 3,410 As Benefits - Other Health/ Life Insurance 1,700 1,785 1,874 1,968 2,066 2,170 As Benefits - Medical Workers Comp 965 1,013 1,064 1,117 1,173 1,232 As Benefits - Medical Unemployment Ins 424 437 450 463 477 492 As Insurance
Other Personnel Expenses 0 0 0 0 0 0 As Benefits - Other - --------- Total Salaries & Benefits $30,243 $36,962 $38,158 $39,393 $40,669 $41,988 Maintenance & Operations
Special Dept. Expense $500 $508 $515 $523 $531 $539 As Miscellaneous Emergency Maintenance 0 0 0 0 0 As Materials & Supplies Communications 250 256 263 269 276 283 As Materials & Supplies -- Total Maintenance & Operations $750 $764 $778 $792 $807 $821 3 of13 05.28.2021
City of Avalon
Saltwater Cost of Service Study Page2 of4
Exhibit3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY2022-23 FY 2023-24 FY2024-25 FY2025-26 Notes Contract Services
Professional Services $4,000 $5,200 $5,356 $5,517 $5,682 $5,853 As Labor City Attorney Retainer 0 0 0 0 0 0 As Labor
Environ Strategy Consultants 288,000 292,320 296,705 301,155 305,673 310,258 As Miscellaneous Environ Contract - OT 0 0 0 0 0 0 As Labor
Environ - Maintanance 0 0 0 0 0 0 As Materials & Supplies Total Contract Services $292,000 $297,520 $302,061 $306,672 $311,355 $316,110 Internal Services
General Insurance $17,026 $17,537 $18,063 $18,605 $19,163 $19,738 As Insurance Admin Overhead 66,364 86,273 88,862 91,527 94,273 97,101 As Labor Total Internal Services $83,390 $103,810 $106,925 $110,132 $113,436 $116,839 Total Salt Water Administration $406,383 $439,056 $447,921 $456,989 $466,267 $475,760 Salt Water Admin Public Works
Salaries & Benefits
Salaries Regular $84,116 $109,351 $112,632 $116,011 $119,491 $123,076 As Labor Overtime Regular 2,100 2,730 2,812 2,896 2,983 3,073 As Labor FICA Retirement 14,165 14,661 15,174 15,705 16,255 16,824 As Benefits - Other CALPers Unfunded Liability PMT 8,435 8,730 9,036 9,352 9,679 10,018 As Benefits - Other Health/ Life Insurance 24,844 26,086 27,391 28,760 30,198 31,708 As Benefits - Medical Workers Comp 3,920 4,116 4,322 4,538 4,765 5,003 As Benefits - Medical Unemployment Ins 1,723 1,809 1,900 1,995 2,094 2,199 As Benefits - Medical Clothing Allowance 288 298 309 319 330 342 As Benefits - Other Total Salaries & Benefits $139,591 $167,782 $173,574 $179,576 $185,796 $192,242 Maintenance & Operations
Special Dept. Expense $500 $508 $515 $523 $531 $539 As Miscellaneous Communications 1,700 1,726 1,751 1,778 1,804 1,831 As Miscellaneous Total Maintenance & Operations $2,200 $2,233 $2,266 $2,300 $2,335 $2,370 Internal Services
Admin Overhead Allocation $20,110 $26,143 $26,928 $27,736 $28,568 $29,425 As Labor Total Internal Services $20,110 $26,143 $26,928 $27,736 $28,568 $29,425 Total Salt Water Admin Public Works $161,902 $196,158 $202,768 $209,612 $216,699 $224,037 4 of 13 05.28.2021
City of Avalon
Saltwater Cost of Service Study Page 3 of 4
Exhibit3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Notes Salt Water Maint & Development
Salaries & Benefits
Ma int. & Repair of Bldg Grnds $2,000 $2,050 $2,101 $2,154 $2,208 $2,263 As Materials & Supplies -------------- Total Salaries & Benefits $2,000 $2,050 $2,101 $2,154 $2,208 $2,263 Total Salt Water Maint & Development $2,000 $2,050 $2,101 $2,154 $2,208 $2,263 Total Operations & Maintenance $570,284 $637,264 $652,790 $668,755 $685,173 $702,059 Taxes / Transfers
$0 $0 $0 $0 $0 $0 As Miscellaneous
- Total Taxes I Transfers $0 $0 $0 $0 $0 $0
Debt Service
lnterfund Loan $18,023 $18,023 $18,023 $18,023 $18,023 $0 Debt Schedule New SRF Loans 0 0 0 0 0 0 Ca le @ 2.5% for 20 Yrs
New Revenue Bonds 0 0 0 0 0 0 Cale @ 4.5% for 20 Yrs
Total Debt Service $18,023 $18,023 $18,023 $18,023 $18,023 $0 Less Connection Fees $0 $0 $0 $0 $0 $0
Net Debt Service $18,023 $18,023 $18,023 $18,023 $18,023 $0 Rate Funded Capital $65,000 $125,000 $140,000 $155,000 $170,000 $185,000 $54,935 FY 2019-20 Depr.

Reserve Funding
To I (From) Saltwater Fund - 112 $155,717 $47,207 $35,299 $23,353 $11,365 $17,401 To/ (From) Saltwater Reserve Fund -113 0 0 0 0 0 0
------------- Total Reserve Funding $155,717 $47,207 $35,299 $23,353 $11,365 $17,401 Total Revenue Requirement $809,024 $827,494 $846,112 $865,131 $884,561 $904,461 5 of 13 05.28.2021
City of Avalon
Saltwater Cost of Service Study Page4of4
Exhibit 3
Revenue Requirement
Budget Projected
FY 2020-21 FY2021-22 FY 2022-23 FY 2023-24 FY2024-2S FY 2025-26 Notes Bal./(Def.) of Funds $0 ($17,963) ($36,374) ($55,246) ($74,590) ($94,417) Rate Adj. as a % of Rate Rev. 0.0% 2.5% 5.1% 7.7% 10.4% 13.1% Proposed Rate Adjustment 0.0% 2.5% 2.5% 2.5% 2.5% 2.5%
Months of Adjustment 12 12 12 12 12 12
Add'I Revenue from Adj. $0 $17,963 $36,374 $55,246 $74,590 $94,417 Total Bal/(Def.) of Funds $0 $0 ($0) $0 $0 ($0)
Additional Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% DSC Ratio
Before Rate Adjustment 13.25 9.56 8.71 7.83 6.92 N/A
After Rate Adjustment 13.25 10.55 10.73 10.90 11.06 N/A Avg Res Annual Bill $265.60
After Proposed Rate Adjustment $265.60 $272.24 $279.05 $286.02 $293.17 $300.50 Annual$ Change 6.64 6.81 6.98 7.15 7.33
Cumulative Change 6.64 13.45 20.42 27.57 34.90
Avg Res Mont hly Bill $22.13
After Proposed Rate Adjustment $22.13 $22.69 $23.25 $23.84 $24.43 $25.04 Annual$ Change 0.55 0.57 0.58 0.60 0.61
Cumulative Change 0.55 1.12 1.70 2.30 2.91
Reserve Funds
Saltwater Fund - 112
Beginning Balance $26,288 $182,005 $229,212 $264,511 $287,864 $299,229 Plus: To Operating Reserves 155,717 47,207 35,299 23,353 11,365 17,401 lnterfund Loan Proceeds 0 0 0 0 0 0
Less: Uses of Funds 0 0 0 0 0 0
Ending Balance $182,005 $229,212 $264,511 $287,864 $299,229 $316,630 Target: 90 days of O&M $140,618 $157,134 $160,962 $164,899 $168,947 $173,111 Saltwater Reserve Fund - 113
Beginning Balance $0 $0 $0 $0 $0 $0
Plus: To Operating Reserves 0 0 0 0 0 0
Less: Uses of Funds 0 0 0 0 0 0
Ending Balance $0 $0 $0 $0 $0 $0
Total Reserve Funds $182,005 $229,212 $264,511 $287,864 $299,229 $316,630 6 of 13 05.28.2021
City of Avalon
Saltwater Cost of Service Study I Inflation 2.7% I Page 1 of 1 Exhibit4
Capital Improvement Plan
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Total Saltwater Capital Improvement $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $300,000 -- Total Capital Projects $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $300,000 Future Unidentified Projects $15,000 $75,000 $90,000 $105,000 $120,000 $135,000 $540,000 To Capital Reserves $0 $0 $0 $0 $0 $0 $0
Total Capital Improvement Projects $65,000 $125,000 $140,000 $155,000 $170,000 $185,000 $840,000 Less: Outside Funding Sources
Saltwater Fund -112 $0 $0 $0 $0 $0 $0 $0
Saltwater Reserve Fund - 113 0 0 0 0 0 0 0
New SRF Loans 0 0 0 0 0 0 0
New Revenue Bonds 0 0 0 0 0 0 0 -
Total Outside Funding Sources $0 $0 $0 $0 $0 $0 $0
Rate Funded Capital $65,000 $125,000 $140,000 $155,000 $170,000 $185,000 $840,000 7 of13 05.28.2021
Present FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Rate Adjustment Rates 2.5% 2.5% 2.5% 2.5% 2.5%
Residential $265.60 $272.30 $279.10 $286.10 $293.25 $300.60 Commercial $265.60 $272.30 $279.10 $286.10 $293.25 $300.60 Hotel $146.10 $149.75 $153.50 $157.35 $161.30 $165.35
8 of 13 05.28.2021
Customer Class
Residential
Commercial
Hotel
City of Avalon
Saltwater Cost of Service Study
All Customer Rates
Proposed Rates: Year 1 - FY 2021-22
Present Proposed Difference
Rates Rates __ $_:.:.,~I --%--
$22.13
$22.13
$12.18
$22.69
$22.69
$12.48
$0.56
$0.56
$0.30

2.5%

2.5%

2.5%
Present Rates Proposed Rates
Residential
Commercial
Hotel
9 of 13
Rate
$22.13

22.13 12.18
Residential
Commercial
Hotel
Rate
$22.69

22.69 12.48

05.28.2021
Customer Class
Residential
Commercial
Hotel
City of Avalon
Saltwater Cost of Service Study
All Customer Rates
Proposed Rates: Year 2 - FY 2022-23
Present Proposed Difference
Rates Rates --$-=--~I--%--
$22.69
$22.69
$12.48
$23.26
$23.26
$12.79
$0.57
$0.57
$0.31

2.5%

2.5%

2.5%
Present Rates Proposed Rates
Rate Rate
Residential $22.69 Residential $23.26
Commercial 22.69 Commercial 23.26
Hotel 12.48 Hotel 12.79
10 of 13 05.28.2021
Customer Class
Residential
Commercial
Hotel
City of Avalon
Saltwater Cost of Service Study
All Customer Rates
Proposed Rates: Year 3 - FY 2023-24
Present Proposed Difference
Rates Rates - -$-=~I - -%- -
$23.26
$23.26
$12.79
$23.84
$23.84
$13.11
$0.58
$0.58
$0.32

2.5%

2.5%

2.5%
Present Rates Proposed Rates
Residential
Commercial
Hotel
11 of 13
Rate
$23.26

23.26 12.79
Residential
Commercial
Hotel
Rate
$23.84

23.84 13.11

05.28.2021
Customer Class
Residential
Commercial
Hotel
City of Avalon
Saltwater Cost of Service Study
All Customer Rates
Proposed Rates: Year 4 - FY 2024-25
Present Proposed
Rates Rates
$23.84 $293.25
$23.84 $293.25
$13.11 $161.30
Difference
$ I %
$269.41 1130.0%
$269.41 1130.0%
$148.19 1130.1%
Present Rates Proposed Rates
Residential
Commercial
Hotel
12 of 13
Rate
$23.84

23.84 13.11
Residential
Commercial
Hotel
Rate
$293.25
293.25
161.30

05.28.2021
Customer Class
Residential
Commercial
Hotel
City of Avalon
Saltwater Cost of Service Study
All Customer Rates
Proposed Rates: Year 5 - FY 2025-26
Present Proposed Difference --....:.:..~---
Rates Rates $ I %
$293.25
$293.25
$161.30
$300.60
$300.60
$165.35
$7.35
$7.35
$4.05

2.5%

2.5%

2.5%
Present Rates Proposed Rates
Residential
Commercial
Hotel
13 of 13
Rate
$293.25
293.25
161.30
Residential
Commercial
Hotel
Rate
$300.60
300.60
165.35

05.28.2021

Solid Waste Cost of Service Study
Revenue Requirement Summary
Exhibit 1
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Revenue
Rate Revenues $1,837,000 $1,837,000 $1,837,000 $1,837,000 $1,837,000 $1,837,000 Non-Operating Revenues 125,177 123,773 122,838 122,824 123,438 124,224 ------ Total Revenues $1,962,177 $1,960,773 $1,959,838 $1,959,824 $1,960,438 $1,961,224 Expenses
Total Operations & Maintenance $2,032,831 $2,341,158 $2,550,154 $2,623,119 $2,598,269 $2,675,670 Taxes/ Transfers 200,000 268,519 279,444 294,390 315,846 349,474 Rate Funded Capita l 0 0 0 0 0 0
Net Debt Service 0 0 0 0 0 0
Reserve Funding (270,655) (290,688) (83,478) 77,808 167,991 146,509 Total Revenue Requirement $1,962,177 $2,318,988 $2,746,120 $2,995,317 $3,082,107 $3,171,653 Balance/(Deficiency) of Funds $0 ($358,215) ($786,282) ($1,035,494) ($1,121,669) ($1,210,429) Bal/(Def.) as a % of Rate Rev. 0.0% 19.5% 42.8% 56.4% 61.1% 65.9% Proposed Rate Adjustment 0.0% 19.5% 19.5% 9.5% 3.0% 3.0% Add'I Revenue from Adj. $0 $358,215 $786,282 $1,035,494 $1,121,669 $1,210,429 Tot al Bal/(Del)ofFunds $0 $0 $0 $0 $0 $0
Add'I Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% DSC Ratio
Before Rat e Adjustment N/A N/A N/A N/A N/A N/A
After Rate Adjustment N/A N/A N/A N/A N/A N/A
Avg Res Annual Bill $559.51 $668.61 $798.99 $874.90 $901.15 $928.18 Avg Res Monthly Bill $46.63 $55.72 $66.58 $72.91 $75.10 $77.35 Total Ending Balance $967,752 $677,064 $593,585 $671,394 $839,385 $985,894 1 of 7 05.28.2021
City of Avalon
Solid Waste Cost of Service Study
Exhibit 2
Escalation Factors
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Revenues
Customer Growth Calculated 0.0% 0.0% 0.0% 0.0% 0.0%
Consumption Growth 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
M iscellaneous Revenues 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Expenses
Labor Budget 10.0% 3.0% 3.0% 3.0% 3.0%
Benefits - Medical Budget 5.0% 5.0% 5.0% 5.0% 5.0%
Benefits - Other Budget 3.5% 3.5% 3.5% 3.5% 3.5%
Materials & Supplies Budget 2.5% 2.5% 2.5% 2.5% 2.5%
Equipment Budget 3.5% 3.5% 3.5% 3.5% 3.5%
Miscellaneous Budget 1.5% 1.5% 1.5% 1.5% 1.5%
Utilities Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Insurance Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Sanitation Contract Budget 3.0% 3.0% 3.0% 3.0% 3.0%
Flat Budget 0.0% 0.0% 0.0% 0.0% 0.0%
Interest 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
New Debt Service
low Interest loans
Term in Years 20 20 20 20 20 20
Rate 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Revenue Bond
Term in Years 20 20 20 20 20 20
Rate 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%
2 of 7 05.28.2021
City of Avalon
Solid Waste Cost of Service Study Page 1 of4
Exhibit3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 202S-26 Notes Revenues
Rate Revenues
Total Rate Revenues $1,837,000 $1,837,000 $1,837,000 $1,837,000 $1,837,000 $1,837,000 As Customer Growth Non-Operating Revenues
Interest $5,515 $4,112 $3,177 $3,162 $3,777 $4,563 Calc'd on Oper. Balance Harbor Enterprise Fund 27,000 27,000 27,000 27,000 27,000 27,000 As Customer Growth Oil Recycling Grant 5,000 5,000 5,000 5,000 5,000 5,000 As M iscellaneous Revenues Construction Debris 65,000 65,000 65,000 65,000 65,000 65,000 As Miscellaneous Revenues Grease Removal 22,661 22,661 22,661 22,661 22,661 22,661 As Customer Growth --- Total Non-Operating Revenues $125,177 $123,773 $122,838 $122,824 $123,438 $124,224 Total Revenues $1,962,177 $1,960,773 $1,959,838 $1,959,824 $1,960,438 $1,961,224 Solid Waste Admin
Salaries & Benefits
Salaries Regular $45,442 $49,986 $51,485 $53,030 $54,621 $56,259 As Labor Overtime Regular 500 550 567 583 601 619 As Labor
FICA Retirement 7,530 7,794 8,066 8,349 8,641 8,943 As Benefits - Other Calpers Unfunded Liab Pmt 3,905 4,042 4,183 4,330 4,481 4,638 As Benefits - Other Health/Life Insurance 12,762 13,400 14,070 14,774 15,512 16,288 As Benefits - Medical Workers Comp 2,090 2,163 2,239 2,317 2,398 2,482 As Benefits - Other Unemployment Ins 918 946 974 1,003 1,033 1,064 As Insurance Uniforms 126 129 132 136 139 143 As Materials & Supplies Communications 500 513 525 538 552 566 As Materials & Supplies Total Salaries & Benefits $73,773 $79,521 $82,242 $85,060 $87,978 $91,002 3 of7 05.28.2021
City of Avalon
Solid Waste Cost of Service Study Page 2 of 4
Exhibit3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Notes Maintenance & Operations
Rent - General $12,000 $12,300 $12,608 $12,923 $13,246 $13,577 As Materials & Supplies Total Maintenance & Operations $12,000 $12,300 $12,608 $12,923 $13,246 $13,577 Contract Services
Professional Services $8,500 $9,350 $9,631 $9,919 $10,217 $10,524 As Labor City Attorney Retainer 8,000 8,800 9,064 9,336 9,616 9,904 As Labor Used Oil 0 0 0 0 0 0 As Labor
Household Hazardous Waste 120,000 123,000 126,075 129,227 132,458 135,769 As Materials & Supplies Hazardous Waste Disposal 0 0 0 0 0 0 As Materials & Supplies Sanitation Contract 1,650,000 1,837,652 2,035,077 2,096,129 2,159,013 2,223,784 As Sanitation Contract SWRCB Annual Permit 8,000 8,200 8,405 8,615 8,831 9,051 As Materials & Supplies Citywide Trash Roundup 0 0 0 0 0 0 As Materials & Supplies Total Contract Services $1,794,500 $1,987,002 $2,188,252 $2,253,227 $2,320,134 $2,389,032 Internal Services
General Insurance $66,140 $68,124 $70,168 $72,273 $74,441 $76,674 As Insurance Admin Overhead 76,419 84,061 86,583 89,181 91,856 94,612 As Labor -- Total Internal Services $142,559 $152,185 $156,751 $161,453 $166,297 $171,286 Total Solid Waste Admin $2,022,831 $2,231,008 $2,439,851 $2,512,662 $2,587,655 $2,664,897 Solid Waste Infrastructure
Maintenance & Operations
Brown Bags $10,000 $10,150 $10,302 $10,457 $10,614 $10,773 As Miscellaneous --- Total Maintenance & Operations $10,000 $10,150 $10,302 $10,457 $10,614 $10,773 Total Solid Waste Infrastructure $10,000 $10,150 $10,302 $10,457 $10,614 $10,773 Solid Waste Landfill Expansion $0 $100,000 $100,000 $100,000 $0 $0 Total Operations & Maintenance $2,032,831 $2,341,158 $2,550,154 $2,623,119 $2,598,269 $2,675,670 4of7 05.28.2021
City of Avalon
Solid Waste Cost of Service Study Page3 of4
Exhibit 3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Notes Taxes/ Transfers
Post Closure Funding $200,000 $268,519 $279,444 $294,390 $315,846 $349,474 Total Taxes I Transfers $200,000 $268,519 $279,444 $294,390 $315,846 $349,474 Rate Funded Capital $0 $0 $0 $0 $0 $0 $69,623 FY 2019-20 Depr.

Debt Service
New SRF Loans $0 $0 $0 $0 $0 $0 Cale @ 2.5% for 20 Yrs
New Revenue Bonds 0 0 0 0 0 0 Cale @ 4.5% for 20 Yrs
- ---- Total Debt Service $0 $0 $0 $0 $0 $0
less Connection Fees $0 $0 $0 $0 $0 $0
- Net Debt Service $0 $0 $0 $0 $0 $0
Reserve Funding
To/ (From) Solid Waste Fund - 131 ($270,655) {$290,688) ($83,478) $77,808 $167,991 $146,509 To/ (From) Solid Waste Infrastructure Fund - 132 0 0 0 0 0 0 Total Reserve Funding ($270,655) ($290,688) {$83,478) $77,808 $167,991 $146,509 Total Revenue Requirement $1,962,177 $2,318,988 $2,746,120 $2,995,317 $3,082,107 $3,171,653 Bal./{Def.) of Funds $0 ($358,215) ($786,282) ($1,035,494) ($1,121,669) ($1,210,429) Rate Adj. as a% of Rate Rev. 0.0% 19.5% 42.8% 56.4% 61.1% 65.9% Proposed Rate Adjustment 0.0% 19.5% 19.5% 9.5% 3.0% 3.0% Months of Adjustment 12 12 12 12 12 12
Add'I Revenue from Adj. $0 $358,215 $786,282 $1,035,494 $1,121,669 $1,210,429 Total Bal/(Def.) of Funds $0 $0 $0 $0 $0 $0
Add'I Rate Increase Needed 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5 of7 05.28.2021
City of Avalon
Solid W aste Cost of Service Study Page 4 of 4
Exhibit3
Revenue Requirement
Budget Projected
FY 2020-21 FY 2021-22 FY 2022-23 FY2023-24 FY 2024-25 FY 202S-26 Notes DSC Ratio
Before Rate Adjustment N/A N/A N/A N/A N/A N/A
After Rate Adjustment N/A N/A N/A N/A N/A N/A
Avg Res Annual Bill $559.51
After Proposed Rate Adjust ment $559.51 $668.61 $798.99 $874.90 $901.15 $928.18 Annual$ Change 109.10 130.38 75.90 26.25 27.03
Cumulative Change 109.10 239.48 315.39 341.64 368.67
Avg Res Monthly Bill $46.63
After Proposed Rate Adjustment $46.63 $55.72 $66.58 $72.91 $75.10 $77.35 Annual $ Change 9.09 10.86 6.33 2.19 2.25
Cumulative Change 9.09 19.96 26.28 28.47 30.72
Reserve Funds
Total Beginning Balance $1,238,407 $967,752 $677,064 $593,585 $671,394 $839,385 Solid Waste Fund - 131
Beginning Balance $1,238,407 $967,752 $677,064 $593,585 $671,394 $839,385 Plus: To Reserves 0 0 0 77,808 167,991 146,509
Less: Uses of Funds (270,655) (290,688) (83,478) 0 0 0
Ending Balance $967,752 $677,064 $593,585 $671,394 $839,385 $985,894 Target: 90 days of O&M $501,246 $577,272 $628,805 $646,796 $640, 669 $659,754 Solid Waste Infrastructure Fund - 132
Beginning Balance $0 $0 $0 $0 $0 $0
Plus: To Reserves 0 0 0 0 0 0
Less: Uses of Funds 0 0 0 0 0 0
Ending Balance I $0 $0 $0 $0 $0 $0
Total Ending Balance $967,752 $677,064 $593,585 $671,394 $839,385 $985,894 6of7 05.28.2021
City of Avalon
Solid Waste Cost of Service Study
Present FY 2021-2.2. FY 2.02.2.-2.3 FY 2.02.3-2.4 FY 2.02.4-2.5 FY 202.5-2.6 Rate Adjustmen Rates 19.5% 19.5% 9.5% 3.0% 3.0%
Residential (per DU) $559.51 $668.60 $799.00 $874.90 $901.15 $928.20 Res > 10 Units (per DU) 447.69 535.00 639.35 700.10· 721.10 742.75 Shops/ Office ($ I 1000 sq ftJ 884.15 1,056.55 1,262.60 1,382.55 1,424.05 1,466.75 Grocer ($ I 1000 sq ftJ 2,652.45 3,169.70 3,787.80 4,147.65 4,272.10 4,400.25 Gathering Space ($ I 1000 sq ftJ 442.10 528.30 631.30 691.25 712.00 733.35 Restaurants < 100 seats (per acct) 3,536.60 4,226.25 5,050.35 5,530.15 5,696.05 5,866.95 Restaurants > 100 seats (per acct) 7,073.20 8,452.45 10,100.70 11,060.25 11,392.05 11,733.80 Restaurants - Take Out (per acct) 1,768.30 2,113.10 2,525.15 2,765.05 2,848.00 2,933.45 Hotel Room (per room) 213.23 254.80 304.50 333.45 343.45 353.75 Grease Removal (per gallon) 2.56 3.06 3.66 4.01 4.13 4.25 7 of7 05.28.2021

NOTICE OF PUBLIC HEARING

CONCERNING PROPOSED RATE INCREASES

TO SEWER, SALTWATER,AND SOLID WASTE SERVICE FEES
The City Cow1cil of the City of Avalon (the "City') invites the public to attend a Public Hearing to be held on June 1, 2021, at 5:00 p.m., in the City Council Chambers at City Hall, located at 410 Avalon Canyon Road, Avalon, Califomia 90704, or as soon thereafter as the matter may be heard. TI1e purpose of the public hearing is for the City Council to consider adopting increases in the current rates for its sewer, saltwater, and solid waste service fees.

The public may participate in the Public Hearing and address the City Council on the Public Hearing in person by practicing social dL5tancing while waiting in the City Hall Cow·t Yard and entering the Chambers one at a time at the appropria te time. A signup sheet will be provided online prior to tlie meeting and no one will be admitted who is ill or exhibiting symptoms of COYID- 19. Additionally, the general public may participate in the Public Hearing and address the City Council by providing comments via e-Cornment. Please use the link below to provide comments via e-Cornment.

To submit comments using eComment, please follow this link:
https://a va lo n. granicus ideas.com
Click the Meetings tab and then Post to comment on the 06/0 I !2021 meeting.

REASONS FOR THE PROPOSED RAm INCREASES
The City is committed to providing the highest quality utility services at the lowest possible rates fur ow· customers, maintaining financially sound and fiscally responsible sewer, saltwater, and solid waste programs, all while keeping pace with inflation and other cost increases. To meet this commitment, the City engaged an independent consultant to evaluate the infrastructtu·e needs, programs, and operations and maintenance costs of its sewer, saltwater, and solid waste utilities. This review assessed the adequacy of rate revenues to operate and maintain the utilities and comply with all state and federal regulations. Based on this evaluation, it has been determined that rate increases are necessary to enable the City to:
(I) recover cun-ent and projected increases in the costs of operating and maintaining the sewer, saltwater, and solid waste systems; (2) construct capital infrastructure improvements needed to repair, replace and update City's aging sewer and saltwater systems; (3) comply with recent w1funded mandates in solid waste; ( 4) maintain operational and financial stability of the utilities; (5) comply with state and -federal regulatory requirements; and (6) meet and comply with annual debt service requirements. The City's sewer, saltwater, and solid waste service fees are all billed on an annual basis and collected on the property tax roll. Detailed descriptions of the proposed rates for each of the utilities are provided below.

PROPOSED SEWER SERVICE FEES
TI1e proposed rate structure for the City's sewer service fees has various customer classes:
residentia~ public showers, hotels, laundries, shops/offices, combined shops/offices, take-out restaw·ants, churches, bars/restaurants with up to I 00 seats, and bars/restaurants with more than I 00 seats. For residential customers, the ree is determined on a per dwelling unit basis. For public shower customers, the fee is calculated on the basis of the number of showers located at the parcel. For hotel customers, the fee is calculated on the basis of the number of rooms within the hotel property. For laundry customers, the fee is calculated on the basis of the number of washing machines/units located at the property. for combined shops/offices, the fue is calculated on a per 1,000 square foot basis, with a 1,000 square fuot minimum, rounded down in 500 square foot increments above 1,000 square feet. For all other non-residential customers, the fee is a llal, fixed charge per account basis. Within each customer class, the sewer service fee to be imposed is calculated to proportionately allocate the cost of providing sewer services to each parcel based on the estimated amount of wastewater discharged. If adopted, the proposed rates will be in effect beginning July I, 2021, and will be increased each July I thereafter through, and including, July I, 2025. The current and proposed rates and the armual increases in the rates resulting from the proposed rates for the sewer service rees are as set forth in the table below. ·
(!J"iiiiRf;i::rtiND PRorosFD ANNUAL RAns FOR SEWER SM.VICE FEES :~~~:.:~..?,;~.:·~~~·:;~~)t! , Customer ;(!;las·s~1:;."0',t-}, Current 7/1/202 1 7/1/2022 7/1/2023 7/1/2024 7/1/2025 Residential ($/D~elling Unit) $873.00 $934. 10 $999.50 $1,034.50 $1,065.55 $t,097.50 Public Showers ($/Sho\\er) 289.80 310.10 33 1.80 343.40 353.70 Hotels ($/Room) <180. 15 513.75 549.70 568.95 586.05
Laundries ($/Was h Unit) 1, 178.55 1,261.05 1,349.30 1,396.55 1,438.50 S ho1,s/Offices ($/ Acct.) 873.00 934.10 999.50 1,034.50 1,065.55 Combined S1101,s/Otliccs ($/1,000 sq. ft.) 558.70 597.80 639.65 662.05 681.95 Take-out Res tnurants ($/ Acct.) 1,325.20 t,4t7.95 1,5t7.20 t ,570.35 1,617.50 Churches ($/Acct.) 1,764.90 1,888.40 2,020.65 2,091.40 2, 154.1 5 Bars / Res tnul'ants (up to 100) ($/Acct.) 2,624.95 2,808.65 3,005.30 3, 110.55 3,203.90 Bars/ Restaurants (>I 00) ($/Acct.) 3,925.05 4,199.75 4,493.80 4,65 1.1 5 4,790.75

PROPOSED SALTWATER SERVICE FEES
The rate structw·e for the City's saltwater service fees has 3 customer classes: residential, hote), and commercial customers. For residential customers, the amount of the fee to be imposed is determined on a per dwelling unit basis. The proposed fees for hotel and commercial customers are dete rmined on the basis of the number of toilets and urinals within the hotel or commercial property. Within each customer class, the amount of the saltwater service fees to be imposed are calculated to propottionately allocate the cost of providing saltwater services lo each parcel based on the estimated amount of saltwater used. If adopted, the proposed rates will be in effect beginning July I, 2021, and will be increased each July I thereafter through, and including, July I, 2025. The cw-rent and proposed rates for the saltwater service fees are as set forth in the table below.

CURRENT AND PROPOSID ANNUAL RATES FOR SALTWATER SERVICE FEES 364.30
603.60
1,48 1.60
1,097.50
702.35
1,666.00
2,218.75
3,300.00
4,934.40
Customer Class Curl'ent 7/1/202'1 7/1/2022 7/1/2023 7/1/2024 7/1/2025 Residential ($/ Dwelling unit)
Commercial ($/ Toilet & Urinal)
Hotel ($/ Toilet & Urinal)
$265.60 $272.30 $279. 10 $286. 10 $293.25
$265.60 $272.30 $279. IO $286. IO $293.25
$146.10 $149.75 $153.50 $157.35 $161.30
-2-
$300.60
$300.60
$165.35

PROPOSED SOLID WASTE SERVICE FEES
The proposed rate structure for the City's solid waste service fees has 10 customer classes:
residential, residential with more than 10 dwe lling units, hotels, gathering spaces (which include churches, public showers, schools, and the casino building), shops/offices (which include hospitals), grocers, restaurants with up to I 00 seats, restaurants with more than I 00 seats, and take out restaurants. For residential customers, the amount of the fee to be imposed is detennined on a per dwelling unit basis; however, residential properties with IO or more dwelling units are billed at a different rate per dwelling unit to reflect the shared solid waste fac ilities of these customers. The amount of the fee imposed on hotel customers is determined on the basis of the number of rooms within the hotel property. The amount of the fees imposed on gathering spaces, shops/offices, and grocers is determined on a square footage basis. The amount of the fees imposed on restaurants is determined on an account basis. Restaw·ants are also required to pay an additional grease disposal charge which is imposed on a per gallon basis.

Within each customer class, the amount of the solid waste service fees to be imposed are calculated to proportionately allocate the cost of providing solid waste services for each parcel based on the estimated amount of solid waste generated. If adopted, the proposed rates will be in effect beginning July I,· 202 I, and will be increased each July I thereafter through, and including, July I, 2025. The current and proposed rates are as set forth in the table below.

CURRENT AND PROPOSED ANNUAL SOLID W.NSTE SERVICE FEliS
' Current 7/l/2021 71l'liQ'22 7/1/2023 7/1/2024 f:ustomet Glnss Residential {$/ Dwel{jng Unit)
Res> 10 Units ($/ Dwelling Unit)
S hops/ Office ($/ 1,000sq.j/.)
Grocer ($// ,000 sq.fl.)
v.ithcriug Space ($/ 1,000 sq.Ji.)
Restaurants >IOO scats ($/Acct.)
Res tau rants up to l 00 scats ($/Acct.)
Restaurants - Take Out ($/Acct.)
Hotels ($/ Room)
Grease Disposal ($/GaJ/on)(I)
$559.5 1
447.69
884. 15
2,652.45
442. 10
3,536.60
7,973.20
1,768.30
213.23

2.56 $668.60
535.00
1,056.55
3,169.70
528.30
4,226.25
8,452.45
2, 11 3. 10
254.80

3.06 $799.00
639.35
1,262.60
3,787.80
631.30
5,050.35
10,100.70
2,525. 15
304.50

3.66 $874.90
700.10
1,382.55
4,147.65
691.25
5,530. 15
11 ,060.25
2,765.05
333.45

4.01 $901.15
72 1.1 0
1,424.05
4,272. 10
712.00
5,696.05
11 ,392.05
2,848.00
343.45

4. 13
(I) Restaurants must also pay a grease removal charge based on gallons removed in the prior year.

PUBLIC HEARING AND PROTESTS
7/1/2025
$928.20
742.75
1,466.75
4,400.25
733.35
5,866.95
11 ,733.80
2,933.45
353.75

4.25 Any property owner may submit a written protest to the proposed rate increases to the City's sewer, saltwater, and solid waste service fees; provided, however, only one protest will be counted per identified parcel. Any written protest must: ( I) state that the identified property owner is in opposition to the proposed rate increases to the sewer, saltwater, and/or solid waste service fees; (2) provide the location of the identified parcel (by street address, customer account number, or assessor's parcel number); and (3) include the name and signature of the property owner submitting the protest. Written protests may be submitted by mail or in person to the City Clerk at 410 Avalon Canyon Road, P.O. Box 707, Avalon, California 90704, or at the Public Hearing (date and time noted above). To be counted, written protests must be received by the City Clerk prior to the conclusion of the public comtnent portion of the PubLic Hearing. Any protest submitted via e-mail, facsimile, or other electronic means will not be accepted. Please identify on the front of the enve lope for any protest, whether mailed or submitted in person to the City Clerk, Attn: Public Hearing on Rate Increases.
-3-
The City Council will consider all written protests and public comments lo the proposed rate increases at the Public Hearing. Oral comments at the Public Hearing will not qualify as fonna l protests unless accompanied by a written protest. Upon the conclusion of the Public Hearing, the City Counc il will consider adoption of a resolution authorizing the rate increases to the City's sewer, saltwater, and solid waste service fees as described in this notice. 1 f written protests against the proposed rate increases to (I) the sewer service fees, (2) the saltwater service fees, and/or (3) the solid waste service fees as outlined above are not presented by a majority of property owners of the identified parcels upon which the fees are proposed to be imposed, the City Council will be authorized to impose the respective rate increases. l f adopted, the proposed rate increases to the sewer, saltwater, and solid waste service fees will be as set forth in the tables in this notice.

Additional information, including rate analyses, presentations, and proposed rates by year· and parcel can be found at www.cityofavalon.com/assessments. For further questions regarding customer classifications o r the proposed fees to be imposed on parcels, please contact Matthew Balcer, Finance Director, at (310) 510-0220 ext. 170 or at mbakc r@cityo fav a lo n.co m.
-4-

PROPOSED RATE INCREASES

TO SEWER, SALTWATER, AND SOLID WASTE SERVICE FEES

PROPOSED SEWER SERVICE FEES
Customer Class Current Proposed
Residential ($/Dwelling Unit) $999.50 $ 1,034.50
Public Showers ($/Shower) 33 1.80 343.40
Hotels ($/Room) 549.70 568.95
Laundries ($/Wash Unit) 1,349.30 1,396.55
Shops/Offices ($/Acct.) 999.50 1,034.50
Combined Shops/Offices ($/1,000 sq. ft.) 639.65 662.05
Take-out Restaurants ($/ Acct.) 1,517.20 1,570.35
Churches ($/Acct.) 2,020.65 2,09 1.40
Bars/ Restaurants (up to 100) ($/Acct.) 3,005.30 3,1 10.55 Bars/ Restaurants (> I 00) ($/ Acct.) 4,493.80 4,651.15

PROPOSED SALTWATER SERVICE FEES
Customer Class
Residential ($/Dwelling unit)
Commercial ($/Toilet & Urinal)
Hotel ($/Toilet & Urinal)
Current Proposed
$279. 10 $286. 10
$279. 10 $286. 10
$ 153.50 $157.35

PROPOSED SOLID WASTE SERVICE FEES
Customer Class Current Pro[!osed
Residential ($/ Dwelling Unit) $745.49 $80 1.40
Res > IO Units($/ Dwef/;ng Unit) 596.53 64 1.30
Shops/ Office ($/ 1,000 sq. ft.) 1, 178.05 1,266.40
Grocer {$11,000 sq.ft.) 3,534.22 3,799.30
Gathering Space ($//,000 sq.ft.) 589.05 633.20
Restaurants >100 seats ($/Accl.} 9,424.48 10, 131.30
Restaurants up to 100 seats ($/Acct.) 4,7 12.27 5,065.70 Restaurants -Take Out ($/Ace/.) 2,356. 11 2,532.80
Hotels ($/ Room) 284. 10 305.40
Grease Disposal ($/Gallon)(ll 3.41 3.67
(I) Restaurants must also pay a grease removal charge based on gallons removed in the prior year.

MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
June 6, 2023
Administration
David Maistros, City Manager
Devin Hart, Management Analyst
AGENDA ITEM: ----
CITY MANAGER:..:er.__
Contract Assignment for Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement
RECOMMENDED ACTION(S): Consider a request to assign the remaining term of the semiexclusive shore boat franchise agreement with Catalina Coastal Tours, LLC to Catalina Coastal Shoreboat Service, LLC. Provide direction to Staff.

REPORT SUMMARY: This item appears on the agenda at the request of representatives from Catalina Coastal Tours, LLC.

During the April 18, 2023 City Council Meeting, the City Council considered a request from Catalina Coa_stal Tours, LLC to assign the remaining term of the semi-exclusive shore boat franchise agreement to Catalina Coastal Shoreboat Service, LLC.

The City Council requested the potential assignee provide additional information consistent with what was required within the original RFP issued in 2016.

On May 8, 2023, City Staff provided the 2016 RFP to Catalina Coastal Tours. However, no additional information from Catalina Coastal Tours or the potential assignee - Catalina Coastal Shoreboat Services, LLC - was provided.

California Coastal Shoreboat Services, LLC requested the item be brought back to City Council during the June 6, 2023 regular City Council Meeting and confirmed there did not have any additional information to provide.

The City Council has four potential actions it may consider regarding this assignment request:

1. Deny the request.

2. Request a proposal with the information requested in the original 2016 RFP from Catalina Coastal Shoreboat Services, and a detailed plan regarding the assignment and continuity of operations with Catalina Coastal Tours.

3. Approve the assignment on a trial basis through November 30, 2023 with conditions to guarantee managerial and operational consistency and direct the City Manager to amend the existing franchise shore boat agreement.

4. Approve the assignment without conditions and direct the City Manager to execute a franchise shore boat agreement with Catalina Coastal Shoreboat Services for the remaining term (March 22, 2027) and terminate the existing franchise agreement with Catalina Coastal Tours.

GOAL ALIGNMENT: Not aligned.

FISCAL IMPACTS: There will be no change to the budgeted sum through the remaining term of the contract.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Undetermined.

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:

1. April 18, 2023 Staff Report

2. Correspondences

3. Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement

4. First Amendment to the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement

5. Letter of Introduction from Catalina Coastal Shoreboat Services, LLC

6. March 19, 2019 Staff Report.

MEETING DATE:

ORIGINATING DEP:

PREPARED BY:

SUBJECT:

CITY OF AVALON CITY COUNCIL
April 18, 2023
Adrninistration
David Maistros, City Manager
Devin Hart, Management Analyst
AGENDA ITEM: __ ~_,__
CITY MANAGER: t MM L
Contract Assignment for Semi-Exclusive Shore Boat Francl1ise and Shore Boat Services Provider Agreement
RECOMMENDED ACTION($): Consider a request to assign the rernaining term of the semiexclusive shore boat franchise agreement with Catalina Coastal Tours, LLC to Catalina Coastal Shoreboat Service, LLC. Provide direction to Staff.

REPORT SUMMARY: With limited exceptions, for more than 30 years, a singular waterfront business has been contracted by the City for both the annual installation, maintenance and operation of the End Float located at the end of the City's float at the base of the Green Pleasure Pier, and the semi-exclusive shore boat franchise agreement.

On March 15, 2017, the City of Avalon (City) entered into a five-year Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement (hereafter "Shore Boat Agreement") with Catalina Coastal Tours, LLC dba Catalina Coastal Tours and Fishing. The Agreement established specific hours of operation, a fee schedule, and annual $239,000 subsidy provided from the City to the Contractor in monthly installments. The Agreement also included two 5 year renewal terms, but only guaranteed the subsidy for the initial 5-year term.

On December 4, 2018, the City Council authorized the release of a request for proposals for qualified waterside business parties to contract to build and operate an end float for exclusive use at the base of the City-owned float at the end of the Green Pleasure Pier. Only one proposal was received by the January 2019 deadline. On March 19, 2019 the City Council waived all irregularities and awarded a contract to Catalina Island Coastal Tours and Fishing for the building and operating of the End Float.

As outlined in the March 19, 2019 Staff Report regarding the End Float Award: "The main criteria for evaluation and the impetus for the solicitation of the End Float was to alleviate congestion within the harbor, which Staff believes would be accomplished if the lease is awarded to Catalina Island Coastal Tours & Fishing. They currently hold the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement with the City. They propose to operate both the Shore Boat operations and their fishing charters off of this End Float, opening up the existing docks experiencing congestion currently."
In March 2021 , the City Council approve an amendment to the Shore Boat Agreement with Catalina Coastal Tours granting a 5-year renewal term, increasing the fee schedule, and increasing the annual subsidy by $50,000 (approximately 20%) to $289,000.

Recently, the principal operator from Catalina Coastal Tours indicated their desire to assign the remaining term of the Shore Boat Agreement to Catalina Coastal Shoreboat Services, LLC. An introductory letter was received on April ·10, 2023 from Catalina Coastal Shoreboat Services, LLC outlining their qualifications and interest in the assignment.

Concerns exist regarding the assignment of the remainder of the Shore Boat Agreement. Most significantly, it is unclear how the assignment will impact congestion in Avalon Harbor. With current dock loads, the Harbormaster has indicated adding shore boat operations to City-owned floats will not be possible. Having two different entities control the Shore Boat Agreement and the End Float Lease may not be in the best interests of the City.

Further, though the proposed assignee has visited Avalon Harbor to observe operations, they have no history as waterside permit holders,
The City Council has three potential actions it may consider regarding this assignment request:

1. Deny the request.

2. Request more information from Catalina Coastal Tours and Catalina Coastal Shoreboat Services regarding the assignment and continuity of operations.

3. Allow the assignment on a trial basis with conditions to guarantee managerial and operational consistency.

4. Allow the assignment without conditions.

GOAL ALIGNMENT: Not aligned.

FISCAL IMPACTS: There will be no change to the budgeted sum through the remaining term of the contract.

CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Undetermined.

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:

1. Semi-Exclusive Sllore Boat Franchise and Shore Boat Services Provider Agreement

2. First Amendment to the Semi-Exclusive Shore Boat Franchise and Shore Boat Services Provider Agreement

3. Letter of Introduction froln Catalina Coastal Shoreboat Services, LLC

4. March 19, 2019 Staff Report.

Devin Thompson
From: Devin Thompson
Sent:

To:

Thursday, June 1, 2023 9:57 AM
'Scott Gorelczenko'
Subject: RE: Shore boat RFP
Thanks so much.
-Devin
From: Scott Gorelczenko <[email protected]> Sent: Thursday, June 1, 2023 9:42 AM
To: Devin Thompson <[email protected]>
Subject: Re: Shore boat RFP
No additional info to provide
On Thu, Jun 1, 2023, 8:59 AM Devin Thompson <dthompson(a)cityofavalon.com> wrote:

Hi Sharon and Scott,
Please let me know if there is other information to include in our staff report for this item. The agenda will be ready for publication by midday today.

Thanks,
Devin
From: Devin Thompson
Sent: Wednesday, May 31, 2023 12:56 PM
To: 'Sharon Gorelczenko' <[email protected]> Cc: [email protected]; David Maistros <[email protected]> Subject: RE: Shore boat RFP
Great. Thanks so much for confirming.

Do you have any other information that you would like to provide to the City Council? 1 Thanks,
Devin
From: Sharon Gorelczenko <[email protected]> Sent: Wednesday, May 31, 2023 12:55 PM
To: Devin Thompson <[email protected]>
Cc: [email protected]; David Maistros <[email protected]> Subject: Re: Shore boat RFP
We would like to continue to have this on the agenda.

Thank you so much,
Sharon
On Tue, May 30, 2023 at 2:36 PM Devin Thompson <dthompson@,cityofavalon.com> wrote:

Good afternoon Sharon and Scott,
Just checking in on the potential shore boat transfer.

Please let me know if you would like this item to be considered at the upcoming June 6 City Counci I Meeting. and if you, or the nev,1 service provider, has any additional information to share with the City Council. The deadline for an item to appear on the agenda is tomorrow, Wednesday. May 31.

Thanks so much,
Devin
2 From: Devin Thompson
Sent: Monday, May 8, 2023 2:51 PM
To: '[email protected]' <[email protected]>; '[email protected]' <[email protected]> Cc: David Maistros <[email protected]>
Subject: FW: Shore boat RFP
Hi Sharon and Scott,
Attached for your reference is the shore boat services RFP that was circulated in 2016.

As I mentioned a few minutes ago, I think there is some confusion regarding what is being asked/required of the potential new operator.

During the meeting, the City Council requested the same information be prov.ided by the potential new operator as was provided by Catalina Coastal Tours when the RFP was initially circulated. The goal is for the City Council to become fanliliar with the nevv service provider ,rnd be comfortable with assigning the transfer.

The new service provider.can provide as much or as li.t11e information as they would like.

If they/you think that they have provided sufficient information and are ready lo move forward \Vilh the item going back before City Council next week please let me know and I will add the item to the agenda.

Otherwise, please be advised, the deadline for an item to appear on this upcoming May 16 City Council Agenda is Wednesday, May I 0.

I will send you a calendar invite for a phone call on Thursday at 9 a.m.

Please do not hesitate to contact the City Manager if you have any questions. 3 Thanks.

Devin
From: Devin Thompson
Sent: Monday, May 1, 2023 11: 19 AM
To: 'Scott Gorelczenko' <catalinacoastaltours(@gmail.com> Cc: David Maistros <[email protected]>; 'Scott Campbell' <[email protected]> Subject: Shore boat RFP
Good afternoon Scott,
Attached please find the shore boat services RFP that was released in December 2016.

Per City Council direction, can you please provide this document to the potential new lessee and request the RFP be completed as well as to please provide the following:

A plan for providing services for the remainder of the time on the lease Financial statements justifying the continued subsidy.

Please do not hesitate to contact CM Maistros if you have any questions.

Best regards,
Devin Elise Hart
Management Analyst
City of Avalon - Avalon, CA - 90704
310.510.0220 ext. 126
4 -

CITY OF AVALON

SEMI-EXCLUSIVE SHORE BOAT FRANCHISE AND

SHORE BOAT SERVICES PROVIDER AGREEMENT

1. PARTIES ANO DATE.
0/{~~/VJJ; ·,,
This Agreement is made and entered into this /:/iJday of t/lA-(2..C. J-j , 20"17 ("Effective Date") by and between the City of Avalon, a municipal organization organized under the laws of the State of California with its principal place of business at 410 Avalon Canyon Road, Avalon, California 90704 ("City") and Catalina Coastal Tours, LLC, a California limited liability company, d/b/a Cal@fina Coastal Tours & Fishing with its principal place of business at 105 Pebbly Beach Road, Avalon, California 90704 ("Contractor"}. City and Contractor are sometimes individually referred to herein as ''Party" and collectively as "Parties.''

2. RECITALS.

2.1 Background.

Avalon Bay on Santa Cat!31ina Island ("Harbor''} and the City facilities serve as a primary point of ingress and egress for large numbers of people. The relatively small size of the Harbor and the City's facilities mal<e it necessary to control and coordinate businesses operating In the Harbor to avoid undue congestion, to assure against hazard, excessive noise and traffic, and to prevent confusion and injury. It is necessary and vital to the safe and efficient movement of people that the number, nature and scope of businesses on the City's facilities in tl1e Harbor be regulatecl to protect the public health, safety and welfare. A semi-exclusive franchise for shore boat services is vital and necessary to the public safety and welfare and the proliferation of such services within the limited area available would cause excessive traffic, congestion and confusion.

Shore boat service is an integral part of Avalon Harbor and a vital necessity for City residents and persons visiting City, and sllpports City attractions, hotels and restaurants.

2.2 Contt'actor.

Contractor desires to perform and assume responsibility for the provision of certain shore boat services required by City on tile terms and conditions set forth in this Agreement. Contractor represenls that it is experienced in providing passenger carrying services to public clients and is familfar wit11 t11e plans of City.

2.3 Project.

Clly desires lo engage Contractor to render such shore boat services for City ("Project"), also referred to as "Services" as set forth in -this Agreement.

2.4 Seml-excf usive Franchise.

Contractor shall be granted, under this Agreement. a semi-exclusive franchise to operate shore boat services in City waters.
650$9.00003\29$0!680.'2
-

2.6 Annual Subsidy.

Provided that Contractor is operating in accordance with tile terms of this Agreement, City shall provide a subsidy to Contractor during the Initial Term (defined below) in the amount of Two Hundred Thirty Nine Thousand Dollars ($239,000) annually.

2.5 Definitions.

Terms used in thfs Agreement, and not othetwise defined herein, sllall haVH the meanings set forth in Chapter 2- Harbor Regulations, Article 1, Section 10-2.101 of the City Munfcipal Code.

3. TERMS.

3.1 Scope of Services and Term; Grant of Exclusivo Franchise; Anmral Subsidy

3.1.1 General Scope of Services: Contractor promise$ and agr'ees to furnish to City all labor, materials, tools, equipment, services, vesseis, and incidental ancl customary work necessa1y to fully and adequately supply the shore boat services necessary for the Project, herein referred to as ''Services". All vessels operated by Contractor as pa11 of tl1e Services shall be driven onI~, by properly licensed operators.

Said operators shaU be either (1) employees of Contractor, or (2) under contact to Contractor as ressee-operators, or (3) under con1ract to Contractor as owner-operators.

The Services are more particularly described in Exhibit ''/\'' attached hereto and incorporated herein by reference. Exhibit "A" also details the number, type and age of the vessels for operation of the Services to be provided and maintained, in good operating service and repair, by Contractor throughout the term of this Agreement.

Contractor shall replace, as necessary, any such vessels in order to provide the Services as required herein, All Services shall be subject to, and performed in accordance with, this Agresment, the exhibits attached hereto and incorporated herein by reference, ancl all applicable local, state and federal laws, rules and regulations.

3.1.2 Term: The term of this Agreement shall be as follows:

The term of this Agreement shall be five (5) years commencing as of the Effective Dale (the "Initial Term"). The term m~y be extended, pursuant to a written amendment to this Agreement for an additional five (5) years, in the discretion of Contractor. After the first five (5) year extension, the term may be extended, plirsuant to a written amendment to this Agreement, for an additional five (5) years in the discretion of either Party.

3.1 .3 Semi-Exclusive Francr1is0:

Except for shore boat/water-taxi services furnished by cruise ships or such services by otller providers specifically requested by cruise ships, whicl1 shall be subject to City's reasonable approval, City hereby grants Conlcactor for lhe term of this Agreement the exclusive authority, right and privilege to operate and maintain a shore 65059,000()Jl29601680,2
boaUwater~taxi service and to transport passengers and personal baggage and goods for hire over and upon City waters for_ services that originate in and end in City waters. Clty waters shall mean waters within the City limits or within the boundaries of the tidelands· and submerged lands granted to, or under lease to, City.

Notwithstanding the foregoing, City fully retains and reserves all rights, privileges and immunities that it now has under the law to fully patrol and police its waters, and to provide for shore boat services during any period that Contractor is in breach of this Agreement. The granting of this Agreement shall in no way interfere with the right of City to fully use sald waters for any public purpose. Operations of Contractor shall in no way interfere with the exercise of the police power of City or with the improvement or maintenance of any of said waters or waterways.

3.1.4 Annual Subsidy:

In order to assist in the provision of the Services for the benefit of City residents and visitors, City shall provide a subsidy to Contractor during the Initial Term of Two Hundred Thirty Nine Thousand Dollars {$239,000) ann~1~1ly ("Annual Subsidy"). TlIe Annual Subsidy amount for the first year of the Initial Term is based on an anticipated start dale for the Services of March 1, 2017 ("Anticipated Start Date"), Should tile Services not commence on the Anticipated Start Dale, the A1inual Subsidy for the first year of the Initial Tem1 shall be reduced In the amount of Six Hundred Fifty Four Dollars ($654) a day from the Anticipated Start Date until the date the Seivices are actually commenced. Any such reduction shall be made to the first payment to Contractor of one quarter of the Annual Subsidy amount, as detailed below.

The purpose of the Annual Subsidy is to assist Contractor with its operational requirements for the Services as shown in Exhibit "C", attached hereto ~nd incorporated herein by reference, which sets forth Contractor's justific~1tion for the Annual Subsidy. One quarter of the Annual Subsid\t amount (reduced as provided above) shall be paid within fourteen days after the Effective Date; and thereafter, beginning with the fourth month of the Initial Term, one twelfth of t11e Annual SL1bsidy amount shall be paid to Contractor on a monthly basis, by tl1e fifteenth (15th) day of each montll, ln equal monthly installments. City shall have the right to withhold payment of the Annual Subsidy, or any portion thereof, ff Contractor is not performing the Services in accordance with the t~rms of this Agreement. In addition, City may deduct from the Annual Subsidy any amounts owed by Contractor to City under this Agreement a11d not timely paid by Contractor. Unless otherwise approved pursuant to an amendment to this Agreement, no subsidy shall be provided for any extension term of this Agreement.

3.2 Responsibilities of Contractor,

3.2.1 Control and Payment of Subordinates: Independent Contractor: The SeNices shall be performed by Contractor or under its supervision. Contractor wiil determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Contractor retains the right to perform similar or different servfces for others during the term of this Agreement. Any additional personnel 6S0S9,0000l\29601680.2
performing the Services under this Agreement on behalf of Contmctor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all repo1is and obligations respecting such additional personnel, including, but not lfmited to: social security taxes, income tax withholding, linemployment insurance, disability irisurance, and workers' compensation insurance.

3.2.2 Schedule of Services: Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the schedule attached to this Agreement as Exhibit "8'' and incorporated l1erein by reference ("Schedule''), and any other schedules agreed upon by the Pflrtios. Contractor represents that it has the professional and technical personnel and the required number of vessels to perform the Services rn conformance with such conditions. In order to facilitate Contractor's conformance with Iha Schedule, City shall respond to Contractor's subrnittals in a timely manner. Upon request of City, Contractor shalf provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements: All Services of Contractor shall be subject to the approval of City.

3.2.4 City's Representative: City hereby designates 11le Harbor Master, or his or her designee, to act as its representative for the performance of this Agreement ("City's Representative"), City's Representative shall have the power to act on behalf ot City for all purposes under this Agreement. Contractor shall not accept direction or orders from any person other than the City's Representative or his or her designee.

3.2.5 Contractor's Represeri.tilli.\1§.: Contractor will designate a designee to act as its representative for the performance of this Agreement ("Contractor's Representative"). Contractor's Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Agreement. Contractor's Representc1tive shall supervise and direct the Services, using his/her best skiH and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.6 Coordination of Services: Contractor agrees to work closely wlrl1 City staff in the performance of Services and shall be available to City's staff, City consultants and other staff at all reasonable times.

3.2.7 Standard of Care: Performance of Ernployees: Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is sl<illed In tile professional calling necessary to perform the Service~\. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned lo them. Finally, Contractor represents that it, its employoes and 65059.00003\29601680.2
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subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to pe1form the Services, including a City Business License, and that such licenses and approvals shall be maintained throughoLit the term of this Agreement. As provided for in the Indemnification provisions of this Agreen1ent, Contractor shall perform, at its own cost and expense and without reimbmsement from City, any services necessary to correct errors or omissions which are caused by Contractor's failure to comply with the standard of care provided for herein. Any employee of Contractor or its subcontractors who is determined by City to be uncooperative, incompetent, a threat to the adequate or timely completion of t11e Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to City, shall be promptly removed from ttie Project by Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.8 Laws and_Regulations: Contractor shall l<eep itself fully Informed of and in compliance with au· local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services including, but not limited to, all rules and regulations of the U.S. Coast Gl1ard, all ordinances, resolutions and laws of City, and all Cal/OSHA requirements, and shall give all notices required by law.

Contractor shall be liable for all violations of such laws and regulations in connection with Services. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving wrftten notice to City, Contractor shat! be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, Its officials, directors, officers, employees and agents free ~md harmless, pursuant to the indemnification provisions of this Agreement. from any claifn or liability arising out of any failure or alleged failure to comply wrth such laws, rules or 1egulatlons.

3.2.9 lnsucance: Contractor shall maintain prior to ihe beginning of and for the duration of this Agreement insur;ance coverage as specified in Exhibit "D" attached to and incorporated herein by reference.

3.2.10 Safet~( Contactor shall execute and maintain its work so as to avoid injury or damage to any person or property, In carrying out its Servlces, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulation$, and shall exercise all necessar; precautions for the safety of employees r.1nd passengers appropriate to the nature of the Services ahd the conditions under which the Services are to be performed. Safety precautions as applic~ble shall inclucfe, but s!mH not be limited to: (A) adequate life protection and life saving equipment ancl procedures; (B) instructions in accident prevention for all passengers, employees and subcm,tractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or iawfufly required to prevent accidents or injuries; and (C) adequate facilities for tl10 proper inspection and maintenance of all safety measures.

3.3 Contractor Feel:! and Payments; Rates of Fare.

3.3.1 Harbor Use Fe.§l: Contractor sh~tl! pay to City a harbor use fee of 7% 65059.00003\29601630.1
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gross revenues generated In operating the Services ("Harbor Use Fee"). The Harbor Use Fee shall be reported and paid utilizing the ''Harbor Use form" provided by City, unless otherwise specified by the City Finance Department. Payment of the Harbor Use Fee shall be made in such frequency as required by the City Finance Department, and in accordance with all other requirements of the City Finance Department.

3.3.2 Moorlng Lease Fee: Contractor shall pay to City an irnnual lease mooring fee of One Thousand, Three Hundred Nine Dollars ($1,309.00) each, for up to (3) three 30' moorings for the shore boat operation. The Mooring Lease Fee is adjustable, and may be increased by City upon prior notice to Contractor. Payment of the Mooring Lease Fee shall be made within thirty (30) days of receipt of an invoice for such fee by Contractor from City.

3.3.3 Rates of fare. The rates of fare for the transportation of persons and baggage and personal goods for the Services authorized by this Agreement are as set forth in Exhibit "A". Fare amounts set forth In Exhibit "A'' include the total price to be charged to passengers, Inclusive of the Harbor Use Fee and any of her City taxes/fees.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection: Contractor shall maintain complete and accurate records with respect to all fares collected under this Agreement. All such records shall be clearly identifiable. Contractor shall a/low a representative of City during normal business hours to examine, audit, and mal<e transcripts or copies of sl1ch records · and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all such records for a period of three (3) years from the termination date of this Agreement.

3.5 General Provisions.

3.5.1 T~rmination of Agreement.

3.5.1.1 Termination for Convenience: Following the Initial Term, City may terminate tbe whole or any part of this Agreement without cause by giving Contractor six (6) months' prior written notice which clearly expresses City's intent to terminate the Agreement, and specifies the effective date of such termination.

3.5.1.2 Te1mi11ation For Cause: City may, by written notice to Contractor, terminate the whole or any part of this Agreement for cause by giving written notice to Contractor of such termination, and specifying the effective data thereof, at least seven (7) days before the effective date of such termination.

3.5.1.3 Effect of Te1minetion; Aclcliaorwl Services: Termination of this Agreement for any or no reason, in accordance with the provisions above, shall be without liabltlty to City. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it 117ay determine appropriate, services similar io those terminated. 6S059.0000312%0 I G80. J.
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3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

CONTRACTOR:

CITY:

Catalina Coastal Tours & Fishing
PO Box 1812
Avalon, CA 90704
Attn: Scott Gorelczenko
Phone: (310) 513-3566
City of /Wt1lon
P.O. Box 707
410 Avalon Canyon Road
Avalon, CA 90704
Attn: Harbor Master
Phone: 310 510-0535
Fax: 310 510-2640
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit ln the U.S. Mail, first class postage prepaid anct addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Conffdentialily: All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, Input record data, written information, and other documents and data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor. Such materials shall not, without the prior written consent of City, be used by Contractol' for any purposes other than the performance of the Ser1ices. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Contractor which is other..vlse known to Contractor or is generally known, or has become known, to the related industry shall be deemed confidential. Contractor sllall not use City's name or insignia, photographs of tile Project, or any publicity petiainlng to the Services or tt1e Project in any n-1agazlne, trade paper, newspaper, television or radio prodL1ction or other similar medium without the prior written consent of City.

3.5.4 Cooperation; Further Acts: The Parties shall ft1lly cooperate with one another, and shall take any additional acts or sign any additional documents as niay be necessary, appropriate or convenient to attaih the purposes of this Agreement.

3.5.5 Attorney's Fees: If either party commences an action against the other party, elther legal, administrative or otherwise. arising out of or in connection wlll1 this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees-and all other costs of such action. 6S0S9.00003'1.96016S0.2

3.5.6 lndemnjfication: To the fullest extent permitted by law, Contractor shall defend, Indemnify and hold Clty, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or relating to any alleged acts, errors, or omissions of Contractor, ifs officials, officers, employees, agents, and Contractors arising out of or in connection with the performance of the Services, including without limi1ation the payment of all consequential damages, expert witness fees, and attorneys' fees and other related costs and expenses. Contractor shall defend, at Contractor's own cost, expense and risl<, any and all such aforesaid suits, actions or other legal proceedings of every l(lnd that may be brought or instituted against City, its directors, officials, officers, employees, agents, or volunteers. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its director&, officials, oftlcers, employees, agents, or volunteers, in ahy sucl1 suH, action or other legal proceeding. Contractor shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by el:lch of U1em in connection therewith or in enforcing tl1e indemnity herein provided, Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by City, its directors, official's officers, emph:iyees, agents, or volunteers.

3.5.7 Entire Agreement: This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes alf prior negotiations, lmderstandings or agreements. This Agreement may only be modified by a writing signed by both parties,

3.5.8 Goverr:,ing Law: This Agreement shall be governed by the laws of the State of California. Venue shall be in Los Angeles County.

3.5.9 Time of Essence: Time is of the essence for each and every provision of this Agreement.

3.5.10 Successors and Assigns: Tt1is Agreement shall be binding on the successors and assigns of the p$rtles.

3.5.11 Assigr1ment or Transfer: Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecatlon or transfer.
3,G.12 Construction; References; Captions: Since the Parties or their agents have participated fully in lhe preparation of this Agreement, the language of this Agreement shall be construed simply, according to Its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not worl< days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, 650$9.0000.1\29601680.2
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employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various a1iicles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.5.13 Amendment; Modification: No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5:14 Waiver: No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or peIiormed by a Party shall give the other Party any contractual rlghts by custom, estoppel, or otherwise.

3.5.15 No Third Party Beneficiaries: There are 110 intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5, 16 Invalidity: S~verability: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.17 Prohibited Interests: Contractor maintains and warrants that it has not employed nor retained any comp:any or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that ,t has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any foe, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest In t11is Agreement, or obtain any present or anticipated tnHterial benefit arising therefrom.

3.5.18 Equal Opportunity Employment: Contractor represents that il is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation or Identity or age. Suet, non-discrimination shall include, bllt not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

Contractor shall also comply with- all relevant provisions of City's Minority Stisiness Enterprise program, Affirmative Action Plan or other related programs or guidelines currently In effect or hereinafter enacted,

3.5.19 Labor Certification: By its signature ilereunder, Contractor certifies that it is aware of the provisions of Section 3700 of !he California Labor Code whicil require every employer to be insured against liability for Worker's Compensation or lo undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of tl1e Services. t<SOS9.0000)\2%016ij0.2
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3.5.20 Authority to Enter Agreement: Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.

Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.6.21 CQUnterparts: Tl1is Agreement may be signed in counterparts, each of which shall com'3tltule an origin al.

3.6 Subcontracting.

3.6.1 Prior Approval Required: Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated h0rein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. [Signatures on following page]
-l,S059.U0003\2%01680.2

SIGNATURE PAGE
TO

EXCLUSIVE SHORE BOAT FRANCHISE AND

SHORE BOAT SERVICES PROVIDER AGREEMENT

CITY OF AVALON
Jl ll ·
I/ . ( ;_!,1--···~·'
B ✓ / /\. / ,•,. ':(::,_ .,... 1/i"t""1 _,- JI
ce>~ l:i-n - - --- Pate
Attest:

Approved as to Form:
6S059.0~0031296016B0.2

CATALINA COASTAL TOURS,
LLC 0 /B/A/ CATALINA COASTAL

TOURS & FISHING
(It Corporation, TWO
SIGNATURES, President OR Vice
President ANO Secretary, AND

CORPORATE SEAL OF CONTRACTOR

REQUIRED)
-------, ,,.. ··-·; / / .~·· _ _.,, / .. /
/ ,.// ✓ / . '1 .... ,rf,-,;
~y<'t~·-·' // ( -¥,{:-L_:/ ~ -/ ..'>~Zl,/ -;,
.- _, 0 [> Date ,, I
,/ ,.r
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•
EXHIBIT "A"

SCOPE OF SERVICES, VESSEL DETAILS, RATES OF FARE

AND OTHER REQUIREMENTS

1. Services,
a. Genera!. Shore boat services, as used in tl1ls Agreement, shall mean vessels carrying passengers or freight for hire to and from boats moored within or without City waters to the shore In Avalon, between such boats in City waters or between points on the shore in Avalon. As specified herein, Contractor shall provide certified passengeI· carrying vessels, and shall adhere to the State of California Public Utilities Code provisions applicable to ce1tificate of poblio convenience and necessity regarding water taxis, and shall obtain such certificate as may be legally required. b. Place of Business. Contractor shall maintain a place of business in the Cily so that Contractor may be contacted by telephone at all times. Mechanical means of answering may be provided, but messages must be checked at frequent intervals. All shore boats n,w3t be equipped with VHF capabilities,
Contractor currently maintains a location of business at 105 Pebbly Beach Road. This location is staffed seven (7} days a week from 0900-1700 with an office manager, and is considered Contractor's home bas0 for operations. This location is equipped with a VHF radio and phone system to maintain communication with captains and vessels.

After normal operating hours, the phone system is forwarded to Capt<1in Scott Gorelczenko for 24 hour 7 day a week coverage. Contractor shall notify City ot any changes to the identified Captain, or to the location of Contractor's business. c. Staffing. Contractor has a current staff of three captains, and anticipates addlng an additional three captains to its full time staff. Contractor shall maintain a staff level sufficient to provide the Services in accordance with the Schedule, and all other requirements contained in tllis Agreement.
d. Ticketing. Contractor shall also provide a tlcl<eting locati9n for purchasing a "convenience card'' or "locals discount card" allowing purchase of bulk rides using credit, debit or cash as set forth in the fees section of this Agreement. e, Call Box Stations. Contractor shall install and maintain a "call box" station on the Green Pier, and may instaH and maintain a "call box" station on the Cabrillo Mole, to allow passengers to contact Contractor for Services during all times of operation. Calls made via the "call box" shall be forwarded to Contractor's cell phone and shall be answered during operating hoµrs of the Services as sat forth in Exhibit ''B". f. Dock Space. City will make dock space available for a shore bo(lt operation. 6SOS9.0000J\?.9GOl680.2.

2. Vessels.
a. New Vessels. Contractor shall provide two (2) 20'17 24' WingCat Shore Boats (the "New Vessels"}, as depicted below, which are designed to carry as many as twenty one (21) passengers, and are manufactured in San Diego, California. Contractor shall obtain from the United States Coast Guard ("USCG"), a certificate of inspection ("COi'') upon completion, which COi shall dictate the final number of passengers. If tho number Is less than 18, another New Vessel shall be provided by Contractor. These vessels have a single Evenrude out-board gas englne, and shall be outfitted with VHF radios and all required safety equipment per the USCG. Contractor shall make its best efforts to ensure that the New Vessel$ are in operation and being used to provide the Services by ,lune 15, 2017.
650S9.0000J\l?601680.2
b. Interim Use and Backup Vessels. The Parties agree that until the New Vessels have been delivered to Contractor, Contractor shall utilize its current fleet of three (3) Uninspected Passenger Vehicles {''UPV'), sometimes referred to as the "Back-up Vessels". The Back-up Vessels are all gas powered, and were built In 2005, 2006 and 2008. Two of these vessels, "Mojo'' and "C•Star", have single out-board motors and "Diversity'' has a single in-board engine. The Back~up Vessels have engines that are between six (6} to thirteen ( 13) months old. These vessels shall be operated as six. (6) passenger vessels, and shall be available to assist during peak demand in the sumnwr months If the New Vessels are insufficient to meet demand, Contractor has represented to City that the Back-up Vessels are not required by the USCG to possess a COi provided that they are operated with no more than six (6) passengers, and one (1) craw, aboard. Notwithstanding the foregoing, it shall be Contractor's obligation to comply with all legal requirements related to use and operation of the Back-up Vessels.

Until the New Ves.sels are delivered to Contractor, Contractor may moor the Back-up Vessels al lhe two (2) 30' moorings leased by Contractor for the New Vessels pursuant to Section 3.3.2 of the Agreement.
c, California Public Utiflties Commission ("PUC") Vessel Common Carrier CertifLQ_filQ.

Contractor acknowledges tl1e requirement to meet the PUC requirements for a Vessel Common Carrier certificate/permit ("Certificate"), if applicable, Contractor has represented to City that the vessels to be used in performance of the Services are not required to carry a Certificate. Notwithstanding the foregoing, it shall be Contractor's obligation to comply with the PUC requirements for a Ce11ificate, and to obtain such Certificate i( legally required. Contractor shall timely obtain and furnish to City a ruling from the PUC with a determination as to whether or not Contractor is required to obtain a Certificate to operate the Services in City.
d. Maintenance and Repair of Vesselq,, Contractor shall, at all times, maintain the vessels used in performance of the Services in attractive condition, and in good and safe operating service and repair.
[Exhibit "A" continued on following page]
61059.00003\2960 !680.2
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3. Fee Schedule.

Unless otherwise approved by the Harbor Master, in writing, Contractor st1all charge tl1e following fees (rates of fare) for sho(e boat use.

Fee Schedule
.. ·- Type Price IJcscrlptfon . In Harbor $4.00 - Per Passenger Outside Harbor $S.00 re, P.issenger -- .. llesldent Commuter Card $36.00 10 Trips Inside Harbor " Resld,mt Commuter Card $45.00 10 Trips outside Harbor Convenience C;ird $40.00 10 Trips inside Harbor
Convenlnnte card $50.00 10 Trips outside Harbor -
65059.00003\2960 I 680.2
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EXHIBIT "B''

SCHEDULE OF SERVICES
Unless othetwise approved In writing by tile Harbor Master, Contractor shall provide the Services in accordance with the following schedule (''Schedule").

The times set forth below represent the first and last time on each day of the weel< specified that the shore boat leaves the dock.
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Shoreboat Schedule
Month Sun-Thursday Frlday.Snturdny
"January 0800-2200 0800-2400
•February 0800-2200 0800-2400
.., March 0800-2200 0800-2400
** Apdl 0800-22.00 0800-7.400
**May 0800-2200 0700-0200
H JUM(! 0700-2400 0700-0200
*•July 0700-2400 0700-0200
0 August 0700-2400 0700,0200
September 0700-i400 0700-0200
•October 0700-2400 0700-0200
•November 0800·2200 0800-2400
"'December 0800•?.200 0800·2400
.".'...~!Q.~jl_r mol}.lli§_.!J)oat per shift
u 2 boats Scheduled 1000-1800
Ati<litlonal 3rd il!Jd 4th vassefs aval.LQ!LJ'lS neede_d basl~ ti of 60.its
1 1
2 '2 -- 2
2 2
2 2
1 1
1 Notwithstanding the number of boats identified in the Schedule, Contractor shall provlde a sufficient number of vessels to ensure that no p~ssenger win be required to wait longer than ten minutes for Services. Contractor shall provide the number of boats specified In the above Schedule using the New Vessels and, as needed, using its Backup Vessels lo meet additional demand. ihe Service area shall include any Etnd all mooring areas controlled by City and anchorage area within the vicinity of City.
650S9.00G03\l%016S0.2
EXHIBIT ''C"

BASIS FOR SUBSIDY
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Subsidy Requirement $239>000
Shoreboat Revenue $ 200,000.00 Based on so,ooo riders
City Subsidy $ 239,000.00
Gross Rcven1,1e Total $ 439,000,00
4 Costs
Ooat Financing $ 70,000.00 3p month term
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Labor $ 221,500.00 (7500 Hours Annually includes laxe s} Fuel·
Malnt
Insurance
Mooring
Bottom Service
Rent
Harbor Ta>< '7%
Moto.r Replacement
Taxes
Booking cc Fees
Mlscl Exp
Total Exp.

Net Profit
$ 18,000.00
$ 12,510.00
$ 17,000.00
$ 2,618.00
$ 1,680.00
$ 3,000.00
$ j4,_000.00
$ 9,000.00
$ 28,000.00
$ 3,000.00
$ 10,000.00
$ 410,308.00
$ 28,692.00
--·-·- -·--
3 yevr replacement progr.im
Accounting/ Bankhlf\ / Mnrketing
Note: All figures based on annunl totals
650S'J.00003U%ll I 6RO.:I.
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EXHIBIT "D"
INSURANCE REQUIREMENrs
Prior to the beginning of and throughoul the duration of the Worf<, Contractor will maintain insurance in conformance with the requirements sef forth below. Contractor will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set fo1th here, Contr0etor agrees to amern:I, supplement or endorse the existing coverage to clo so. Contractor aci<nowleclges tha/ the Insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any lnsuraoce proceeds available to Cily in excess of the limits and coverage required in this agreement and which is applicable to a given toss, will b0 available to Cfty.

Contractor shall provide the following types end amounts of insurance:

A. Commercial General Liability Insurance using ln$urance Services Office "Commercial General Liability'' policy form CG 00 0·1 or the exact f.iquivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $5,000,000 per occurrence. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall ~pply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit.

B. Business Auto Coverage on ISO Busine$S Auto Coverage form CA 00 01 inoluding symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1 ,000,000 per accident. Jf Contractor owns no vehicles, this requirement may be satisfied by a non•owned auto endorsement to the general li,)bHity policy described above. City will waive the foregoing business auto coverage requirement for non-owned automobiles If Contractor will not be utilizing automobiles in the pertormance of this Agreement. If Contractor or Contractor's employees will use personal autos in any way on this project, Contractor shall provide evidence of personal auto liability coverage for each such person.

C. Vessel Protection and Indemnity (P&I) with liability limits of al least $5,000,000 per occurrence. The P&I policy must include, at a minimwn, general, legal, and pollution liability coverage, and shall be written on a form acceptable to City.

1. Pollution liability coverage limits under the P&I policy shall be, at mlnlmum, as follows:
(a) $500,000 per claim covering Contractor's activities under this Agreement for liability arising out of a sudden, accidental and gradual pollution if MOS9.0000J\296!Jl680.2
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vessels with outboard fuel tanks are utilized, and $·1 ,000,000 per clailn if vessels with inboard fuel tanks are utlfized, (b) Pollution legal liability, of no less than $1 million, applicable to bodily injury; property damage, including loss of use of tfanmged properly or of propeliy that has not been physically injured or destroyed; cleanup costs; and defense, Including costs and expenses incurl'ed in the investigation, defense, or settlement of claims; all in connection with any loss arising from Contractor's activities under this Agreement.

2. Contractor may satisfy the requirements of this section through the purchase of multiple policies as necessary,

3. If the P&I policy contains a general aggregate limit, eltl1er the general aggregate limit shall apply separately to thts Agreement or the general aggrerJale limit shall be twice tile reqLJired occurrence limits specified above.

D, Contactor shall maintain, during the term of this Agreement, Workers' Compensation insurance for all of employees as required by Labor Code section 3700 of the State of California, Employers Liability with limits of $1,000,000 per Accident; $1,000,000 Disease per employee; $1,000,000 Disease per policy, The insurer shall agree to waive all rights of subrogation against City, its officers, officials, and employees for losses arising from work falling within the terms of this Agreement, For clarification, pursuant to California law, all of Contractor's employees performing under this Agreement must be covered under Worker's Compensation insurance.

Contractor's employees that are captain and crew are subject to the Jones Act. Any Contractor employees involved in land baseq operation in and around water {dock) and/or involvec,i in the maintenance and repair of boats must be covered under USL&H. lnsurence procured pursuant to these requirements shall be 1Mitfen by ilisuren; that are licensed carriers in the state of California and with an A. M. Bests rating of A- or better and a minimum financial size VII.

General conditions pe1iaining to provision of insurance coverage by Contractor.

Contractor and City agree to the following with respect to Insurance provided by Contractor:

1. Contractor agrees to have its insurer endorse the third party general liability coverage required herein to Include as additional insureds City, its officials, employees and agents, using standard ISO endorsement No. CG 20·10 with an edition prior to 1992. Contractor a(so agrees to require all contr~otors, and subcontractors to do likewise.

2. No liability insurance coverage provided to comply with this Agreement shall prohibit Contractor, or Contractor's employees, or a9ents, frorn waiving the righl of subrogation prior to a loss. Contractor agrees to waive subrogation rights 650S?,OOC<}3\296016S0.2
------·-·----- --
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against City regardless of the applicability of any insurance proceeds, and to require all contractors and subcontractors to do likewise.

3. All insurance coverage and limits provided by Contractor and available or applicable to this agreement are Intended to apply to the full extent of tl1e policies. Nothing contained in this Agreement or any other agreement relating to City or its operations limits the application of such insurance coverage.

4. None of the coverages required herein will be in compliance with these requirements if they Include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

5. No liability policy shall contain any provision or definition that would serve to eliminate so-,::alled "third party action over" claims, incl'uding any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.

6. All coverage types and limits required are subject to approval, modification and additional requlrements by City, as the need arises. Contractor shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City's protection wit11ol1t City's prior written consent.

7. Proof of compliance with these insurance requirements, consisting of certificates of Insurance evidencing all of lhe coverages required and an additional insured endorsement to Contractor's general lif;lbillty policy, shall be delivered to City at or prior to the e?(ecutlon of this Agreement. In the event such proof of any Insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect lts interests under this or any other agreement and to pay tt1e premium. Any premium so paid by City sl,all be charged to and promptly paid by Contractor or deducted from sums due Contractor, at City option.

8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of emy suspension, voldance, cancellation, or reduced in coverage or in limits.

Contractor agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of suspension, cancellatlon, voidanoe or reduction in coverage imposes no obligation, or that any pa11y will "endeavor'' (as opposed to being required) 1o comply with the requirements of the certificate.

9. It is acknowledged by the parties of this ,agreement that all insurance coverage required to be provided by Contractor or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other Insurance or self insurance available to City.
6S0.19.00003tl96016&0.2
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10. Contractor agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum Insurance coverage required of Contractor.

Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is- provided in conformity with t11e requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in 1he project will be submitted to City for review.

11. Contractor agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required l1erein and further agrees that it will not allow any Contractor, subcontractor, Architect, Engineer or other entity or person in any way involved in the pe,formance of work on the project contemplated by this agreement to self-insure its obligations to City. If Contractor's existing coverage includes a deductible or self~lnsured retention, Ille deductible or self~insured retention must be declared to City, At that time City shall review options with Contractor, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.

12. City reserves the right at any time during the term or the contrclct to change the amounts and types of insurance required by giving Contractor ninety (90) days advance written notice of such change. If Sllch change results in substantial additional cost to Contractor, City will negotiate additlonal compensation proportional to the Increased benefit to City.

13. For purposes of applying insurance coverage only, this Agree,nent will be deemed to have been executed Immediately upon any party hereto taking any steps that can be deemed to be ln furtherance of or towards performance of this Agreement.

14. Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor of non-compliance with any insurance requirement in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard.

15. Contractor will renew the required coverage annuully as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to 1hat effect.
16, Contractor shall provide proof that policies of Insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration, A coverage binder or letter 6S0S9.0000J\29601680,2
from Contractor's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these speciflcations applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages.

17. The provisions of any workers' compensation or similar act will not limit the obligations of Contractor under this agreement. Contractor expressly agrees not to use any statutory Immunity defenses under such laws with respect to City, Its employees, officials and agents,

18. Requirements of speclfic coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any givHn policy. Specific reference to a given coverage feature is for purposes of clarification only as It pertains to a given Issue, and is not intended l,y any party or insured to be limiting or allinclusive.

19. These Insurance requirements are intended to be separate and distinct from any other provision in t11is agreement and are intended by the parties here to be interpreted as such.

20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or Impairs the provisions of this Section.

21. Contractor agrees to be responsible for ensuring that no contract used by any party Involved In any way with the project reserves the right to charge City or Contrnctor for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto.

22.AII insurance shall be written on an occurrence-made form, except tl1e pollution liability policy wl)icl1 is on a claims~made form of insurance requiring Contractor to provide proof of coverage (extending reporting) for a minimum of three (3) years following termination of this Agreement.

Contractor agrees to provide immediate notice to City of f.lny claim or loss. against Contractor arising out of the work performed under this a~1reernent. City assumes no obligation or llablllty by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to Involve ClW, i;,os9.0ooo)\296o 1680.2

FIRST AMENDMENTTO CONTRACT AGREEMENT FOR
CITY OF AVALON SEMl•EXCLUSlVE SHORE BOAT FRANCHISE AND
',HORE BOAT SERVICES PROVIDER AGREEMENT
rh,s HRS'f .l\(r1>:-~11d,ni.'nt b m;;d" effective March L:•, 2022 to th<: Comract Agr,wrnent hy <1nd h'!tween ihe City of /\v;ilori [''City) and C;,talina Coa~lnl Touro, l LC, a Californi?. limited liability cornpany, d/b/ a Ca,alina C,>ast;il Tours & Fishing ("Contr;ictor'') dated the 15'" day of rv1arch 20 l.7.

The terms and r.onclitions of ttw Agree merit are amended a:; follow5:

2.~ Annuill Subsidy.

Provided that the Contract.or i~ oper;;,ting in actordance with the terms of thG AgreernP.nt, City sh.ill provide a subsidy to Contractor during the Renewal Term (definefl below) in rhe ;)mount of Two Hundred Eighty-Nine Thousr1nd Oollar5 ($239,000) .;nnually.

3.1.2 Term.
l he te rm of this First Amendment shsill be f,ve (S) years commencing Marr.1, .1';, 2022 and ending 1Jn March 15, 2027. After this RNw111al Term, the term rnoy be ('Xtended, purs 11a11t to a written amendment to this A~reC!nrnnl, for an additional five (51 years if 001.ico is provided by either party no earlier thun M arch 15. 2026 and no later than September 15, ?.o:;r, ;,r1d upon terms agreed t::i by the r,artie~.

Exhibit A - Fe~ Sthedule
Unless otherwise appt0VC'd by the Harbor fvl&,ter, in writing, Contractor ;; h,111 ch<1rge the following fees (r.ites of fare) for shorn boat use.
~.-..- ·--·· ··---· ----. .

Type Pric.e __ Description ··-·------·-,,
In Hurbor .$5.00 Per Passenger :

Outside of Harbor $ 7.00 Per P3ssenger · · ·
:~:;;~~-~-:gJ1;;ti{----· -- -----·--- -... ~:~:~~ . ------· =~ :· ~~ ~~:~~ :~~:li~;~':i~n-;~--~~~~]' .. Convenience Card ----·------------···-••·--- $50.00 10 h ips ins,cte Harbor Conv~ni~!_:Ce Card ____ ...... ,. -•--- - ·- $70 00 -~ ----~ 10_Trip~ outside Harbor ____ _ _ _ Except as modified abovt1, all tcnns and condition~ of ttw Altr<:'ement 5hall remain in ,~ffcct, Oenise A. Rijdde
City Manager and Cty Clerk
CATALINA COASTAL TOURS, LLC D/B/A CATALINA COASTAL TOURS & FISHING -···-, •. .---··' .. -· ,,.1 / .- I ,,.-· ,/ . () .

By: '>---b-, •-l..· ,.,., . ( ~ t',_ "' c,.~:-: 5ignature L- · 9 '-----?.✓ - -~--
,--: . /) /, ( ;;;ed-t td - (zo-,t,e1.or.....e»,,V~o
By:

Name {Print!
C1\'T1\LIN1\ CC)AS'l'AL Sl·JC)REBC)AT SEHVICE, l;LC
10 April 2023

VIA EMAIL ONLY
Mr. David Maistros, City Manager
Ms. Devin Hart, Management Analyst
City of Avalon
P.O. Box 707
Avalon, CA 90704
RE: Introduction of Catalina Coastal Shoreboat Service, LLC Dear Mr. Maistros and Ms. Hart:

As a brief introduction, I am Larry Southerland, President and Co-Owner of Catalina Coastal Shore boat Service, UC (CCSS). I understand from recent correspondence that you have had with Scott Gorelc7.enko, that both your office and the City Council require additional information to better allow the City to consider the proposed assignment of the shore boat contract from Catalina Coastal Tours and Fishing to my company. As such, I provide the following:

Who We Are/Familiarity with the Contract.

Catalina Coastal Shoreboat Service, LLC (CCSS) is a Service-Disabled Veteran Owned Small Business (SDVOB) establfshed in 2023 to provide a seamless transition from Catalina Coc1stal Tours and Fishing's present shore boat operations to our own. I have personally read all contract documents, have been on island on multiple occasions actively learning (with my staff) the shore boat operations, and understand all contract requirements.

It is our intention to retain all present/existing management and employees of the company with an eye towards increasing efficiencies and expanding services/modernizing the fleet (developing/building a larger capacity WingCal) to belter serve the City of Avalon. CCSS has a selfcontained back-of-house operation which will be providing all administrative, HR, and accounting services for on,island operations. Scott Gorelczenko will remain our on isl,rnd General Manager and boat captain. The proposed assignment will be seamless and neither the City, its residents, or guests will notice any operational change from that currently provided with the sa rne staff, fleet, and procedures being left unaltered. Upon approval, we will move our on-island operations to the same office currently utilized by Catalina Coastal Tours and Fishing.

Our Experience.

Other entities founded/operated by the owners of CCSS include:

Magpie Enterprises Inc., a Service-Disabled Veteran Owned Small Business (SDVOSB) founded to develop innovative solutions for our customers by providing the highest quality multi-disciplinary l 6880 Wes! Bern.=1rdo l >rive, S1e. 250 S,.u 1 Diego. CA n2 l ~~7 I (G l 8) 300· 7u 5 8 technical services for the Submarine community including supporting the development and operation of the US and NATO Subsea rescue systems. Our ownership, senior management and staff are all veterans of the United States Navy and have on average 35 plus years of experience in all aspects of submarine design, operations, m.:iintenance, and rescue as well as Naval engineering, small boat fabrication and repair, port operations and casualty response. Magpie's ability to serve our customers is based .on the multi-faceted talents, experience, capabilities, and initiative of our people. Magpie successfully held the NAVSEA Submarine Rescue Contract and engaged it, multiple subsea rescue/recovery operations. Additionally, subsidiaries of Magpie Enterprises, Inc. previously held several security boat/barrier contracts {San Diego) and port operations contracts (Joint B;_ise Pearl Harbor Hickam, Hawaii) with the Department of Defense.

Magpie Boat Works, LLC, (MBW) is a full-service boat construction, overhaul and refit facility. Located at the southern part of the San Diego Bay in Chula Vista MBW specializes in refit s, repairs and new construction of boats upto 50 meters long and builds the WINGCAT line of vessels like those presently used by Catalina Coastal Tours & Fishing in their shore boat operations within Avalon Harbor. MBW specializes in the construction of aluminum and steel hull workboats, engine repowers, custom fabrications and more. Specific to the commercial and government sectors, MBW also provides highly specialized services including new construction and custom metal fabrications of vessels ranging from minesweepers, training support crafts, patrol boats, dive boats, workboats, and barges.

Our Owners/Operators.

I am the President and Co-owner of CCSS and the other described entities. Since founding Magpie Enterprises in 2005, I have been directly involved in the development of .ill operational policies, procedures, strategic planning, ancl marketing efforts. Moreover, I serve as the principal contact for all customers and oversees performance timetables, quality assurance, partner relations, and the internal administration of the company including personnel, fiscal responsibility, ,:ind operational practices. Previously, I cultivated a successtul career with the U.S. Navy retiring as a Commander. In my 32 years In the U.S. Navy; I held increasingly senior positions - that facilitated the development of my extensive capacities in all facets of material, maintenance, submergence rescue vehicle and engineering management.

Gary Southerland is the Vice President and CFO and Co-owner of CCSS and Magpie Enterprises Inc., having supported numerous large contracts including the U.S. Navy Submarine Rescue Contract. His responsibilities have expanded from logistical and fiscal management support for the Submarine Rescue Decompression/Recompression System to that of comprehensive global inventory control and global inovement of the submarine rescue system in support of exercises, emergencies and the global sourcing of support vessels. Gary retired from the U.S. Navy as a Commander. His career began as a supply officer onboarcl the USS Louisville (SSN-724) where he started to develop his experience in supply support management. In 1991, his leadership and supµly management skills were enhanced in his successful tour at the Naval Supply Depot, Subic Bay, Philippines - followed by a tour as a Material Officer on the USS Abraham Lincoln (CVN-72). Gary further ntirtured his talents by earning a Master of Arts in Business Administr.ition and Financial Management at the Naval Post Graduate School in 1997.
10880 wc.sl 13errn:1rclo Drive. Sie. ~so s<·1n Dici-,\o. C,\ 0 2 127 I 10 I P! ::{00-7G::-8 Certification of Good Standing/ Financial Capability.

The owners of Catalina Coastal Shoreboat Service, LLC are seasoned business operators. In our nearly 20 years of operations neither the company or any of its principals/members or employees have ever been or are currently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in any transaction with any local, state, or federal depilrtment or agency. In fact, the owners of CCSS through their various other entities both previously held and currently hold multiple federal contracts. I attach for your reference a Certificate of Good Standing from the California Secretary of State.

We have performed an assessment of lhe projected income and expenses for the period April 2023 through March 2024 and have determined that the income for operations provide adequate reserves for historical/projected expenses using actual and historical data. Projected expenses included general maintenance, with the expectation that future expenses for new engines and new boats would be required to maintain full operations to support the City contract. The company intends to use profits/capital to purchase and maintain boats for volume of visitors to the island in peak seasons.

Future projections include similar results with the ability to maintain a positive cash flow to provide assurance to management and the City that this business venture will be profitable and the service to the general public will maintain current standards with the anticipated future enhancements from newer equipment which will be more efficient providing confidence of continued operations for years to come.

Should you require any additional information, please advise so .that we may provide same. I look forward to meeting you and the City Council at a futtire date. cc Scott Gorelczenko
Attachment - Certificate of Good Standing
16880 West B<.."n1<1rclo Urive. Ste. ;)50 S1:m Diego, CA 02 1 :!7 I 1G L{)J '..300-7(iG8 Secretary of State
Certificate of Status
I, SHIRLEY N. WEBER, PH.D., California Secretary of State, hereby certify:

Entity Name:

Entity No.:

Registration Date:

Entity Type:

Formed In:

Status:

Catalina Coastal Shoreboat Service LLC
202355516168
03/07/2023
Limited Liability Company - CA

CALIFORNIA
Active
The above referenced entity is active on the Secretary of State's records and is authorized to exercise all its powers, rights and privileges in California.

This certificate relates to the status of the entity on the Secretary of State's records as of the date of this certificate and does not reflect documents that are pending review or other events that may impact status.

No information is available from this office regarding the financial condition, status of licenses, if any, business activities or practices of the entity.

Certificate No.: 098759541
IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of April ·10, 2023.

SHIRLEY N. WEBER, PH.D.

Secretary of State
To verify the issuance of this Certificate, use the Certificate No. above with the Secretary of State Certification Verification Search available at bizfileOnline.sos.ca.gov.