AVALON CITY COUNCIL MEETING
TUESDAY, FEBRUARY 18, 2025 — 5:00 PM
410 AVALON CANYON ROAD
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 publicinspection at the time the records are distributed to all, or a majority of all, members of the City Council. Suchrecords shall be available at City Hall located at 410 Avalon Canyon Rd.
For the public’s convenience, but not participation, the meeting can be viewed:
On local cable: Catalina Broadband Solutions channel 3
Streaming on Facebook Live: www.facebook.com/CityOfAvalonOfficial Streaming on YouTube: https://www.youtube.com/CityofAvalonCA
CALL TO ORDER I PLEDGE OF ALLEGIANCE I INVOCATION I ROLL CALL
ANNOUNCEMENTS I WRITTEN COMMUNICATIONS
PRESENTATION
1. Robert Greenlaw, CIP Director, will provide an update regarding the Five Corners Comprehensive Site Improvement Project.
DEPARTMENT HEAD REPORTS
CITY MANAGER REPORT I CITY ATTORNEY REPORTCOUNCILMEMBER REPORTSIREQUESTS I MAYOR REPORTORAL COMMUNICATION Members of the public may address the City Council at this time. No action will be taken on nonagenda items at this meeting. Speakers should limit comments to two (2) minutes each.
CONSENT CALENDAR
1. City Council Minutes
Although the live recording is the official record of public meetings, minutes are prepared for the Council’s approval.
Recommended Action
Approve minutes from the February 4, 2025 regular City Council Meetings.
2. Warrants
Expenditures Submitted for Approval
• US Bank General Account Warrants totaling $399,340.27.• One payroll totaling $780,066.77.• Four electronic fund transfers totaling $192,367.90.
CITY COUNCIL AGENDA
FEBRUARY 18, 2025PAGE 2
Recommended Action
Approve total expenditures for January 27, 2025 through February 7, 2025 totaling $849,272.14.
3. FY25 Mid-Year Financial Results and Proposed Budget Amendments In June 2024, City Council adopted the City’s annual operating and capital budget for the fiscal year ending June 30, 2025. The unaudited revenue and expenditure figures for activity through December 31 have been compiled to provide a comparative update to theadopted budget.
Recommended Action
1. Receive the report of the Mid-Year Financial Results for FY24-25; and 2. Adopt a resolution authorizing the proposed budget amendments as outlined in Exhibit A to thisreport.
4. Authorization to Provide On-Site Professionalized Services for the WWIP Pebbly Beach Lift Station Programmable Logic ControllerPERC Water maintains the City’s Wastewater Treatment Plant, and have requested tohave See Water Inc. rehabilitate Pebbly Beach Lift Station’s programmable logic controller. The rehabilitation requires installation of a new additional cabinet and control panel, CP1240-A, and moving sensitive wiring and components to the new control panel about 20 feet away from the sump area.
Recommended Action
Authorize PERC Water to contract See Water Inc. to provide on-site professionalized services for the WWTP Pebbly Beach Lift Station Programmable Logic Controller from Sewer Fund 108-25-652 1 for an amount of not-to-exceed $30,250.
5. Reject Proposals Received for GIS Project
The City has a Geographic Information Systems program managed with an outdated agreement. In December 2023, the City issued a request for proposal and received four proposals for GIS services in January 2024 ranging from $65,000 to over $500,000 forinitial project implementation Recommended ActionReject proposals received for Geographic Information System (GIS) Services and Software Project.
GENERAL BUSINESS6. Magical Cruise Company Ltd Preferential Anchorage Access Magical Cruise Company Ltd, dba Disney Cruise Lines, has requested preferential access to the City’s anchorage point located outside of Avalon Harbor to support cruiseship operations. At this time, cruise ship anchorages are secured on a first requested, first secured basis. In order to secure preferential access, the City of Avalon and Disney Cruise Lines would establish a port agreement.
CITY COUNCIL AGENDA
FEBRUARY 18, 2025
PAGE 3
Recommended Action
1. Authorize the City Manager execute a Term Sheet with Magical Cruise Company Ltd, dba Disney Cruise Lines. 2. Authorize the City Manager to negotiate a Port Agreement with Magical Cruise Company Ltd, dba Disney Cruise Lines based on the terms set forth in the approved Term Sheet.
7. Patrol Boat 4 Hull Repairs and Paint
Patrol Boat 4 is part of a fleet of seven (7) boats necessary to carry out the day-to-day operations of the Harbor Department. The vessel is one of the primary patrol boats used in wintertime operations. After being taken to the mainland for an engine replacement, it was discovered to have some significant hull issues that need to be repaired.
Recommended Action
1. Make the affirmative finding that the City will not gain a competitive advantage by using the formal contract bid or other competitive procedure and dispense with formal bidding or other competitive procedures as outlined in Avalon Municipal Code Section 3-4.106.
2. Authorize the City Manager to approve an expenditure not to exceed $30,000, from the Harbor Capital Improvement budget, account 10470-6781, for major repairs and refurbishment to be done to the hull of Patrol Boat 4.
8. Green Pier Restroom Renovation Prolect
The public restrooms at the Green Pier have been in use for approximately thirty yearsand are in need of significant upgrades to meet current standards of accessibility, hygiene, and aesthetics.Recommended Action
Authorize the City Manager, per the City’s purchasing policy, to execute an agreement with MKS Specialty Finishes, Inc., and Geoff King Plumbing, to perform renovation workto the public restrooms located at the Green Pier at a cost not to exceed $100,000 fromthe Green Pier Restrooms CIP fund (10470-6547) Project# 247005.
9. Professional Services Agreement for Preliminary Site Assessment, Soil and Water Investigation, Corrective Action Plan and Verification Monitoring for Underground Storage Tank Site at the Ava Ion Fuel DockThe State of California requires closure of specific types of underground fuel storage by December 31, 2025. The City recently completed the removal of the four existing underground storage tanks at the Avalon Fuel Dock. The Los Angeles Regional Water Quality Control Board has requested a work plan and additional information from theCity’s closure contractor.
Recommended Action
Authorize City Manager to negotiate and execute a Professional Service Agreement with Wayne Perry, Inc. for a not to exceed amount of $60,000 for Site Assessment, Soil andWater Investigation, Corrective Action Plan and Verification Monitoring for underground storage tank site at the Avalon Fuel Dock.
CITY COUNCIL AGENDA
FEBRUARY 18, 2025
PAGE 4
10. Agreement with Los Angeles County for Participation in Los Angeles Region Imagery Acquisition Consortium Program and Geographic Information Systems Services The City of Avalon currently has a Geographic Information Systems (GIS) program managed with an outdated agreement. At the end of 2024, City staff met with Los Angeles County Internal Services Department GIS staff to inquire about services available to contract cities.
Recommended Action
Authorize the City Manager to execute a 3-year agreement with the County of Los Angeles for the City of Avalon’s participation in the Los Angeles Region Imagery Acquisition Consortium Program and assistance modernizing the City’s Geographic Information Systems environment in an amount not-to-exceed $115,000.
11. Annual Financial Report for the Fiscal Year Ended June 30, 2024 The annual financial report is the set of basic government financial statements that comply with the accounting requirements established by the Governmental AccountingStandards Board (GASB). The City’s financial statements were audited by Davis Farr LLP, an independent public accounting firm of licensed certified public accountants.Recommended ActionReceive and file the annual financial report for the fiscal year ended June 30, 2024.
ADJOURN
NOTICE OF POSTING
I, Devin Elise Hart, declare that the City Council Agenda for Tuesday, February 18, 2025 was posted on Friday, February 14, 2025 on the City’s website, www.cityofavalon.com/aqendacenter, and at City Hall, 410 Avalon Canyon Road.
Devin Elise Hart, Senior Management Analyst
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: 1
ORIGINATING DEP: City Clerk CITY MANAGER: _______ PREPARED BY: Gabrielle Morones, City ClerkSUBJECT: City Council Minutes RECOMMENDED ACTION(S): Approve minutes from the February 4, 2025 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 onthe posted agenda pursuant to the Brown Act.ATTACHMENTS:
1. February 4, 2025 regular City Council Meeting Minutes
AVALON CITY COUNCIL MEETING
TUESDAY, FEBRUARY 4, 2025
MINUTES
CALL TO ORDER: 5:00 p.m.
ROLL CALL- Present via Teleconference and In-Person: Mayor Anni Marshall, Councilmembers Lisa Lavelle, Michael Ponce, Mary Schickling and Yesenia De La Rosa. Also present: City Manager David Maistros, City Attorney Scott Campbell and City Clerk Gabrielle Morones.
WRITTEN COMMUNICATIONS - None.
PRESENTATION
1. Finance Director, Matthew Baker, provided a midyear review of the City’s Fiscal Year 2024-25 Budget.
CONSENT CALENDAR -There were 10 Items on the Consent Calendar. Item #10 was pulled by Mayor Marshall for further discussion. Motion to approve Items #1-#9 madeby Lisa Lavelle, seconded by Lisa Lavelle, seconded by Mary Schickling. (All Ayes)
1. City Council Minutes
Approved minutes from the January 21, 2025 regular City Council Meetings.
2. Warrants
Approved US Bank General Account Warrants totaling $3,042,361.43, US Bank Housing Authority Warrants totaling $178,614.30, three payrolls totaling $780,066.77, five electronic fund transfers totaling $248,140.04 for a totalexpenditure of $4,249,182.54 for December 14, 2024 through January 24, 2025.
3. Fiscal Year 2024-2025 Second Quarter Treasurer’s Report Adopted Resolution No. SA 25-03 of the City Council of the City ofAvalon/Successor Agency to the Avalon Community Improvement AgencyAdopting the Treasurer’s Investment Report for Fiscal Year 2024/2025 Second Quarter.
4. City Manager Employment Agreement
Authorized execution of the Employment Agreement for City Manager Services with David Maistros.
5. Los Angeles County Public Health Services Contract
Authorized the City Manager to execute the Los Angeles County Public Health Services Contract.
CITY COUNCIL MINUTES
FEBRUARY 4, 2025PAGE 2
6. Resolution Approving the Blanket Authority to Apply for Grant Funds from the Los Angeles County Regional Park and Open Space District for Measure AFunding for Projects and Programs Adopted Resolution No. 25-04 of the City Council of the City of Avalon CaliforniaApproving the Blanket Authority to File Applications for Grant Funds from the LosAngeles County Regional Park and Open Space District for Measure A Funding for Projects and Programs.
7. 2025 Waterside Permit Renewals
Authorized the Harbor Master to renew Waterside Permits for 2025.
8. Professional Services Agreement for On-Call Planning Consultant Authorized the City Manager to negotiate and execute a professional services agreement with Sagecrest Planning and Environmental, LLC for on-call planning consultant services for a three-year term for an annual cumulative total not-toexceed $150,000.00.
9. Authorization to Provide On-Site Engineering and Support Services for WWTP Control System
Authorized PERC Water to contract The LeMasters Company to provide on-site engineering and support services for the control system at the WastewaterTreatment Plant from Sewer Fund 108-25-652 1 for an amount of not-to-exceed $71,775.
PULLED ITEM - Pulled Item for further discussion.
10. Global Paving RFP
Authorized the City Manager or his designee(s) to develop and solicit a request for proposals from qualified firms to implement city-wide paving repairs.
Motion to approve made by Michael Ponce, seconded by Anni Marshall.(All Ayes)
GENERAL BUSINESS
11. Waterside Project Application — Catalina Island Mermaids dba Avalon Barebottoms
Made the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and granted the Waterside Project Application to Catalina Island Mermaids, dba Avalon Barebottoms, with the following conditions: 1.Notification will be made to Harbor Office Personnel prior to dive operations being conducted. The Harbor Master retains the ability to restrict or curtail operations when conditions dictate. 2. Current registration for the skiff used in dive operations will be provided to the Harbor Master annually. 3. Skiff used in
CITY COUNCIL MINUTES
FEBRUARY 4, 2025PAGE 3
dive operations wilt be secured to one of the public dinghy docks and meet all requirements for use of these docks. 4. Personnel conducting dives will have current and applicable professional certifications for dive operations and take all necessary safety precautions while operating within the Harbor. 5. Applicant will obtain a business license for Avalon Barebottoms separate from Catalina Island Mermaids LLC. This waterside permit applies to the conditions of use for AvalonBarebottoms. Activities related to Catalina Mermaids will begin and end from the shore. 6. Applicant abides by the Standard List of Conditions for Waterside Permit Holders.
Motion to approve made by Michael Ponce, seconded by Lisa Lavelle. (All Ayes)
12. Waterside Permit Application — Island Enterprises, Inc. dba Catalina Adventure Tours
Made the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and granted the Waterside Project Application to Island Enterprises, dba Catalina Tours, contingent upon the following conditions: 1.
Allow Island Enterprises to utilize 1 non-exclusive use float in position “E” on the pier for their tour boat operation, utilizing the semisubmersible Nautilus (USCG documentation 1079045). The City will not charge fees for the float so long as its use is non-exclusive to Island Enterprises. 2. Allow occasional use of the CabrilloMole floats to pick up groups as long as Island Enterprises does not interfere with cross channel carriers or cruise ship traffic. 3. Require City Council approval if Island Enterprises elects to utilize their PUC Tariff on-call charter service to pick up passengers in all areas specified on the Tariff excluding services between any vessels, points and places starting with and ending within the Avalon city limits.4. If City Council approves at a later date, allow Island Enterprises on-call charters the ability to utilize any Green Pier float and allow occasional use of theCabrillo Mole floats to pick up groups as long as Island Enterprises does not interfere with cross channel carriers or cruise ship traffic. 5. Require Island Enterprises to pay nightly mooring fees for their vessels.
Motion to approve made by Lisa Lavelle, seconded by Yesenia De La Rosa.(All Ayes)
13. Waterside Prolect Change Conditions of Use— Avalon Aquatic Excursions Made the affirmative finding that conditions set forth in the Avalon Municipal Code have been met and granted the Waterside Project Application to Avalon Aquatic Excursions, with the following conditions: 1. All operations to load and unload passengers will take place on Pleasure Pier floats with occasional use of the floats at the Cabrillo Mole. Applicant must not interfere with other commercial boat traffic including cross-town ferry and/or cruise ship tender traffic. During summer months applicant will make all efforts to utilize the shore-boat float of the End Float of the pier. 2. Applicant abides by the standard list of conditions for Waterside Permit holders. 3. Applicant meets all regulatory requirements for
CITY COUNCIL MINUTES
FEBRUARY 4, 2025PAGE 4
passenger-carrying vessels of this type, including any U.S. Coast Guard and Public Utilities Commission requirements. 4. Prior to vessel acquisition, applicant will provide the Harbor Master with the technical specifications, including make, model, length, beam, propulsion type, passenger capacity for approval. Any future proposed changes to these specifications will require prior Harbor Master approval in writing.
Motion to approve made by Michael Ponce, seconded by Lisa Lavelle. (All Ayes)
14. City Vehicle Storage Yard Policy
Approved the City of Avalon Vehicle Storage Yard Policy.
Motion to approve made by Michael Ponce, seconded by Yesenia De La Rosa.(All Ayes)
15. Introduction and First Reading of an Ordinance Repealing and Replacing Title 4, Public Safety, Chapter 4-1 Bicycles and Repealing Chapter 4-10 of the Avalon Municipal Code
Introduced and waived all readings of an Ordinance of the City of Avalon Repealing and Replacing Title 4, Chapter 4-1 and Repealing Chapter 4-10 of the Avalon Municipal Code Regarding Bicycles, Electric Bicycles and Motorized Bicycles.
Motion to approve made by Lisa Lavelle, seconded by Michael Ponce. (All Ayes) Mayor Marshall adjourned the meeting at 6:44 p.m.
I, Gabrielle Morones, City Clerk, do hereby certify that the DVD videotape of the regular City Council Meeting on February 4, 2025, is the official record of the Council Meetingand is on file and maintained in City Hall.Gabrielle Morones, City Clerk
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: 2—
ORIGINATING DEP: Finance CITY MANAGER: _______ PREPARED BY: Matthew Baker, Finance Director SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve total expenditures for January 27, 2025 throughFebruary 7, 2025 totaling $849,272.14.
REPORT SUMMARY: These disbursements through February 7th are comprised of warrants from the US Bank General Account totaling $399,340.27, one payroll totaling $257,563.97, and other electronic fund transfers totaling $192,367.90.
Warrants issued on January 17, 2025 that were mailed to vendors located outside of the City had not been received after three weeks. To avoid further delays in payment, Finance voided these uncashed checks and reissued new checks to vendors impacted on February 6, 2025 as listed below and in the attached warrant listing.
ITEM DESCRIPTION AMOUNT DATE
GE US BANK WARRANTS CK# 39366 -39425 $ 286,916.72 01/31/25 GF US BANK WARRANTS CK# 39426 - 39456 98,934.75 02/05/25 VOID GF US BANK WARRANTS 01-17-25 (746,379.19) 02/06/25 GF US BANK WARRANTS CK# 39457 - 39501 759,867.99 02/06/25 PAYROLL 257,563.97 02/07/25EFT -CALPERS MEDICAL 100,834.53 02/07/25 EFT -CALPERS RETIREMENT 44,981.07 01/31/25EFT -CALPERS RETIREMENT 44,904.93 01/31/25EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 1,647.37 02/07/25 TOTAL DISBURSEMENTS $ 849,272.14
GOAL ALIGNMENT: Ongoing meeting of City obligations.
FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in the FY24-25 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 Lists, US Bank Detail
CITY OF AVALON
JANUARY 27, 2025 - FEBRUARY 7 DISBURSEMENTS
February 18, 2024
ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK# 39366 -39425 $ 286,91672 01/31/25GE US BANK WARRANTS CKU 39426- 39456 98,934.75 02/05/25 VOID GF US BANK WARRANTS 01-17-25 (746,379.19) 02/06/25 GF US BANK WARRANTS CK# 39457 - 39501 759,867.99 02/06/25PAYROLL 257,563.97 02/07/25EFT -CALPERS MEDICAL 100,834.53 02/07/25EFT -CALPERS RETIREMENT 44,981.07 01/31/25EFT - CALPERS RETIREMENT 44,904.93 01/31/25EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 1,647.37 02/07/25 TOTAL DISBURSEM ENTS $ 849,272.14
CERTIFICATE
IN ACCORDANCE WITH SECTION 32702
OF THE GOVERNMENT CODE, I CERTIFY
THAT THE ABOVE DEMANDS ARE ACCURATEAND THAT FUNDS ARE AVAILABLE FOR PAYMENT.I CERTIFY UNDER PENALTY OF PERJURY
APPROVED AND AUDITED THIS THAT THE FOREGOING IS TRUE AND 18th DAY OF FEBRUARY 2025 CORRECT.
EXECUTED THIS 18th DAY OF FEBRUARY 2025
AUDIT COMMITTEE -MICHAEL PONCE
FINANCE DIRECTOR - MATTHEW BAKER
AUDIT COMMITTEE - MARY SCHICKLING
CITY OF AVALON
WARRANT DISBURSEMENTS
February 18, 2025
CHECK DATE
NUMBER ISSUED
39366 1/31/202539367 1/31/202139368 1/31/202539369 1/31/202539370 1/31/202539371 1/31/202539372 1/31/202539373 1/31/202539374 1/31/202539375 1/31/202539376 1/31/202139377 1/31/202539370 1/31/202539379 1/31/202539300 1/31/202539381 1/31/202539382 1/31/202539383 1/31/202539304 1/31/202539385 1/31/202539387 1/31/202539387 1/31/202539388 1/31/202539389 1/31/202539390 1/31/202539311 1/31/202139392 1/31/202539383 1/31/202539394 1/31/202539395 1/31/202139391 1/31/202539396 1/31/202539317 1/31/202539318 1/31/202539398 1/31/202539399 1/31/202539399 1/31/202539400 1/31/2025 39401 1/31/2025
39402 1/31/202539403 1/31/202539404 1/31/202539401 1/31/2025 39406 1/31/2025
39407 1/31/202539408 1/31/2025
39409 1/31/202539410 1/31/202539411 1/31/202539412 1/31/202539413 1/31/202539413 2/6/202539414 1/31/202539415 1/31/202539416 1/31/202539417 1/31/202539418 1/31/202539419 1/31/202139422 1/31/202139423 1/31/202139424 1/31/202139425 1/31/2021
AMOUNT NAME
1,923.72 AAAOIL, INC
296.96 ACTION SAILS & METAL CO
1,891 63 AMAZON CAPITAL SERVICES, INC.3,18670 AMAZON CAPITAL SERVICES, INC. 4,ZR7 80 AMAZON CAPITAL SERVICES, INC.
3,831 89 AMAZON CAPITAL SERVICES, INC
1,717.80 AMAZON CAPITAL SERVICES, INC.1,637 64 AMAZON CAPITAL SERVICES, INC. 1,009.91 AVALON FREIGHT SERVICES, LLC3,02270 AVALON MOORING & DIVING 9,681 29 REST, REST & KRIEOER, LLP
34400 CAPE METROPOLE61311 CARSTARPHEN, ORNE
6,000.00 CATALINA FALCONRY, LLC
340.16 CATALINA ISLAND PLUMRING36000 CATALINA ISLANDER317 00 CATALINA PEST CONTROL 24000 CI VENTURES, INC.
933.11 DATA INTEGRITY SERVICES, INC.
2,494 38 DELL MARKETINO L.P.7,019.40 DELTA DENTAL
7,100.11 DELTA DENTAL
41.48 DI MIELE, LAURA
S20.R4 DION & SONS MARINE EUELS INC
61,672.14 EDISON
2,100.00 ESPRY, INC.
1,123.30 FIDELITY SECURITY LIPE INSURANCE
11,316.99 PAIR PLAY CORPORATION11,318.12 DEOFP KIND PLUMBING 1,087.69 DRAINDER
1,079.20 DRAINDER
2,914.71 HAAKER
1,110.11 HDLCOREN & CONE
2,381.06 INDUSTRIAL METAL SUPPLY COMPANY3,330.11 INDUSTRIAL METAL SUPPLY COMPANP 33,21000 JDRDAHL CONSTRUCTION
3,10000 JDRDAHL CONSTRUCTION2,9SROX LEADUE OF CALIFORNIA CITIES
37.00 LOS ANGELES COUNTY PIRE DEPARTMENTSS.26 ISLAND EXPRESS HELICOPTERS INC. 71015 MCDONALD, AUDRA
1,17916 MCMASTER-CAKR
S,X97.90 MONTAGUE, STEVE7,911.00 MONTROSE ENVIRONMENTAL SOLUTIONS3,399.33 NAPA AUTO PARTS 1,06912 NDRTHWIND REFRIGERATION
69430 DUADIENT LEASING USA, INC.096.14 DUADIENT
1,111.61 DUILLCORP
4,041.12 CALWEN INC
300.00 RIVERA, CHRISTINE
(300.00) RIVERA, CRISTINA
924.12 SC SUPPLY COMPANY, LLC
S21.91 SHEEWIN-WILLIAMS
9,312.91 SIRIA’S CLEANING SERVICE
1,20S.R9 STANDARD INSURANCE COMPANY
494.00 VERONICA RRAVD880.04 ULINE, INC.
31,465.20 CORPORATE PAYMENT STSTEMS
1,101.49 USJETIING
300.00 VEDA, RERENICE DALINDO
2,223.84 VERIZON WIRELESS
$ 286,916 72
DESCRIPTION
FUEL: ALL DEPARTMENTS
SUPPLIES: HORROR MAITENANCESUPPLIES: ALL DEPARTMENTS
SUPPLIES: FIRE GRANTSUPPLIES: FIRE GRANT
SUPPLIES: FIRE GRANTSUPPLIES: FIRE GRANTSUPPLIES: FIRE ORANC FREIGHT: ALL DEPARTMENTS
SERVICE: HAERDR
LEGAL FEES: 12/2024
SENIOR MEALS: 12/2024
RETIREE INSURANCE 02/2021
CONTRACT SERVICES FALCONRYSERVICE: FIREADVERTISING: ADMINISTRATIONSERVICE: HARRORSENIOR MEALS: 11/2024SERVICE: ITSUPPLIES: IT DENTAL 01/2021DENTAL: 02/2X2SSUPPLIES: PRIME TIMERSFUEL: HARRORUTILITIES: ALL DEPARTMENTSSERVICE: IT VISION. 01/2021
SUPPLIES: PARK IIMFISERVICE: PUBLIC SHOWERSUPPLIES: CIP 24700SUPPLIES. PURLIC WORKSSUPPLIES PUBLIC WORKSSERVICE: FINANCESUPPLIES CIP 201019SUPPLIES: WWTFSUPPLIES. TOW CARDSERVICES: WWTF
MEMRERSHIP
TRAINING: HARROR EMT
FREIOHT: PURLIC WORKSRETIREE INSURANCE 02/2021
SUPPLIES: PURLIC MORES
RETIREE INSURANCE 07/2024 . 12/2024
SERVICE: CIP 180003
SUPPLIES: VEHICLE MAINTENANCESERVICE: FIREPOSTAGE METER LEASEPOSTAGE REFILLSUPPLIES ALL DEPARTMENTS HARRDR SAFETY EOUIPMENTREFUND: TREMONT HALL
VOID: USFS MAILING ERRORSUPPLIES: PUBLIC WORKSSUPPLIES: HARBOR MAINTENANCE 2ND HALF 01/2021LIFE INSURANCE: 01/2021PRIME TIMER EVENTSUPPLIES: PUBLIC WORKSSEE AllACHED DETAILSUPPLIES: GARAGEREFUND: TREMONT HALLCOMMUNICATIONS: ALL DEPARTMENTS FaKe 1 XI 1
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID January 31, 2025
February lB. 2025
LAST NAME POST DATE AMTUSD VENDOR DESCRIPTION DEPARTMENTBAKER 12/27/2024 10.45 USPS POSTAGE FINANCEBAKER 12/31/2024 144.00 GRAMMAREY CO SURSCRIPTION: IT FINANCERAKER 1/6/2025 304 34 ZOOM SUBSCRIPTION: IT FINANCE GREENLAW 1/13/2025 8,406.40 C & W CONSTRUCTION SPECI SUPPLIES: CIP 205019 (BURMA TRAIL( PUREIC WORKSDAILY 12/30/2024 120.00 DUO.COM OPERATION COSTS: IT ADMINISTRATIONDAILY 1/3/2025 172.S0 COMZOTZ INC OPERATION COSTS: IT ADMINISTRATIONDAILY 1/SS/202S 25.00 CEOUOFLARE OPERATION COSTS IT ADMINISTRATIOND.E. HART 12/19/2024 422.40 SHABEFIEE ELC OPERATION COSTS: IT ADMINISTRATIOND.E. HART 1/2/2025 3S.00 SINCH MAILGUN OPERATION COSTS: IT ADMINISTRATIOND.E. HART 3/5/202S lOGS VAST CONFERENCE OPERATION COSTS: IT ADMINISTRATIOND.E. HART 1/7/2025 R2.R6 CYBERLINK OPERATION COSTS: IT ADMINISTRATIOND.E. HART 1/R/2025 2S2.91 QRFY.COM OPERATION COSTS: IT ADMINISTRATIOND.E. HART 1/15/2025 IS.00 QUICK EISGN ELC OPERATION COSTS: IT ADMINISTRATIONDAVID HART 12/17/2024 10.00 HIT PRINT SUPPLIES SPECIAL EVENT (HOLIDAY) RECREATIONDAVID HART 12/SR/2024 28.05 VONS SUPPEIES: SENIOR PROGRAM RECREATIONDAVID HART 12/IR/2024 34.71 VONS SUPPLIES SPECIAL EVENT (HOLIDAY) RECREATIONDAVID HART 12/10/2024 SR3 R4 CROWN AWARD SUPPERS SPECIAL EVENT (HOLIDAY) RECREATIONDAVID HART 12/23/2024 250.00 VONS SUPPLIES: SPECIAL EVENT (HOLIDAY) RECREATIONDAVID HART 12/26/2024 2.7R VONS SUPPLIES. MEALS OH WHEELS RECREATIONDAVID HART 12/2R/2024 36.29 VONS SUPPLIES: MEALS ON WHEELS RECREATIONDAVID HART 1/2/2024 253.33 VOHS SUPPLIES: SPECIAL EVENT (HOLIDAY) RECREATIONDAVID HART 1/7/2024 S,GSR.17 RCX’MLSGO RCXSPORTS SUPPLIES YOUTH SPORTS (SOCCER( RECREATIONDAVID HART 1/7/2024 407.40 SM MUSICPBEMIUM SERVICE: MUSIC RECREATIONDAVID HART 3/7/2024 90.00 NIGHT OF MTSTEY SUPPLIES: SENIOR PROGRAM RECREATIONFRANCIS 12/18/2024 27S.00 HACCED TRAINING ADMINISTRATIONERANCIS 1/6/2024 366.87 CATALINA CANTON INN LODGIHG: PROFESSIONAL SERVICES IT ADMINISTRATIONERANCIS 1/6/2024 366.87 CATALINA CANTON INN LODGING PROFESSIONAL SERVICES IT ADMINISTRATIONFRANCIS 1/6/2024 56.08 VISTAPRINT SUPPLIES. HARBOR BUSINESS CARDS ADMINISTRATION GILBERT 12/18/2024 S2 58 CHET’S HARDWARE SUPPLIES CIP 180061 (CITY HALL REMODEL) PLANNING & BUILDINGGILBERT 12/23/2024 61.S7 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PLAHNIHG & BUILDINGGILBERT 12/23/2024 1207 CHET’S HABDWABE SUPPLIES MAINTENANCE OF PREMISES PLANNING & BUILDINGGILBEBT 12/26/2024 4S.07 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PLANNING & BUILDING GILBERT 1/8/2025 24.27 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PLANNING & BUILDINGGILBERT 1/8/2025 404 CHET’S HARDWARE SUPPLIES MAINTENANCE OF PREMISES PLANNING & BUILDINGGILBERT 1/9/2025 48.44 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PLANNING & BUILDINGGILBERT 1/10/2025 21.20 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: CIP 252S31 (ANIMAL KENNELS) PLANNING & BUILDINGGILBERT 3/13/2025 21.98 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PLANNING & BUILDING MDRDHES 1/9/2025 1,000.00 08K LAW TRAINING: WIBIHAR ADMINISTRATION GONZALEZ 12/23/2024 153.99 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES P/W ADMINISTRATIONGONZALEZ 12/23/2024 130.61 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: MAINTENANCE OF PREMISES P/W ADMINISTRATIONGONZALEZ 32/31/2024 750.00 COMMUNITY TRANSPORTATION TRAINING: TRANSIT ADMINISTRATIONGONZALEZ 1/3/2025 296.66 TOWN AND COUNTRY LODGING: TRANSIT ADMINISTRATION HMIELAK 12/18/2024 S.8S PEBBLY BEACH BUILDING SUPPLY SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKSHMIELAK 12/20/2024 16.48 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKSHMIELAK 12/20/2024 87.96 ABIAT INTERNATIONAL CLOTHING: PUBLIC WORKS (M O.U.( PUBLIC WORKSHMIELAK 12/30/2024 16.49 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKSHMIELAK 12/30/2024 223.52 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: CIP 2G5G19 (BURMA TRAIL) PUBLIC WORKS HMIELAK 12/30/2024 120.27 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: CIPOB0003 (S COBNEBS( PUBLIC WORKSHMIELAK 1/2/2025 19.79 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKSHMIELAK 1/2/2025 8.79 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKS HMIELAK 1/7/202S 1,389.29 PARTZILLA.COM SUPPLIES: VEHICLE MAINTENANCE PUBLIC WORKSHMIELAK 1/9/2025 40.69 CHET’S HARDWARE SUPPLIES: SMALL TOOLS PUBLIC WORKS HMIELAK 1/10/2025 3,433.93 ETO DOORS CORP SUPPLIES: ANNUAL FACILITIES MAINTENANCE PUBLIC WORKSHMIELAK 1/13/202S 22.53 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKSHMIELAK 1/13/2025 98.27 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKS HMIELAK 1/1S/202S 10.00 CATALINA ISLAND CHAMBER TRAINING: CHAMBER MEETING PUBLIC WORKSCISNEROS, C 1/2/202S 1,146.41 BUDGET TRAVEL: RENTAL CAR FIRECISNIROS, C. 1/6/2025 20.35 TARGET TRAVEL: MEAL FIRECISNEBOS, C. 1/6/2025 48.59 TARGET TRAVEL: MEAL FIRECISNEBGS, C. 1/6/2025 234.73 COSTCO TRAVEL: MEAL FIRECISNEROS, C. 1/13/2025 63.02 TARGET TRAVEL: MEAL FIRECISNEROS, C 1/13/2025 6.48 TARGEY TRAVEL: MEAL FIRECISNERGS, C. 1/13/2025 8.50 TARGET TRAVEL: MEAL FIRECISHEBGS, C. 1/13/2025 S2.SS WALMART TRAVEL: MEAL FIRE
1. HERNANDEZ 12/23/2024 SS.38 CHECS HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKSI HERNANDEZ 12/23/2024 21.99 AVAEON PASS SUPPLIES: VEHICLE MAINTENANCE PUBLIC WORKS1. HERNANDEZ 12/30/2024 70.38 CHEPS HARDWARE SUPPLIES: SMALL TOOLS PUBLIC WORKS1. HERNANDEZ 12/30/2024 186.18 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: CIP 20S019 (BURMA TRAIL( PUBLIC WORKS J. HERNANDEZ 12/31/2024 619.08 SP THE LOCK PEOPLE SUPPLIES. MAINTENANCE OF PREMISES PUBLIC WORKS
1. HERNANDEZ 1/2/2025 65.39 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: CIP 205019 (BURMA TBAIL( PUBLIC WORKS J. HERNANDEZ 1/2/202S 29.2S PEBBLY BEACH BUILDING SUPPLY SUPPLIES: CIP 205019 (BURMA TRAIL) PUBLIC WORKS1. HERNANDEZ 1/6/202S 13.40 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKS
1. HERNANDEZ 3/6/202S 15.93 CHET’S HARDWARE SUPPLIES: MAINTENANCE OF PREMISES PUBLIC WORKS
1. HERNANDEZ 1/SS/2025 94.69 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: CIP 20S019 (BURMA TBAIL( PUBLIC WORKS MAISTROS 12/18/2024 (469.00) EPIC-LA LOS ANGELES CREDIT ADMINISTRATION MAISTROS 1/10/202S 7.69 VONS SUPPLIES: STORM ADMINISTRATION MAISTROS 1/10/2025 36.55 VONS SUPPLIES: STORM ADMINISTRATION MAISTROS 1/10/2025 103.92 VONS SUPPLIES: STORM ADMINISTRATIONMEFFERT 12/24/2024 39.9S AMAZON SUPPLIES: MAINTENANCE OF PREMISES FIRE PaKe S of 2
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID January 31, 2025
February 18, 2025
$ 31,465.70 CHECK NUMBER 39422
DEPARTMENTFIREFIRE
FIREFIREFIREFIREFIREFIREFIREFIREHARBOR MAINTENANCEHARBOR MAINTENANCEHARBOR MAINTENANCEHARBOR MAINTENANCE
HARBOR MAINTENANCEHARBOR MAINTENANCEHARBOR MAINTENANCEHARBOR MAINTENANCEHARBOR MAINTENANCE
ADMINISTRATION
HARBORHARBORHARBORHARBORHARBORHARBOR[IARBORHARBORFIARBORHARBOR LASTNAME POSTDATE AMTUSD VENDOR DESCRIPTIONMEFFERT 1/10/2025 113.94 VONS MEAL UPSTAFFING WEAT[IERMEFFERT 1/13/202S 60.15 LOBSTER TRAP MEAL: MECHANICSMEFFERT 1/1S/202S 23.20 AMAZON SUPPLIES: MAINTENANCE OF PREMISESMEFFERT 1/15/202S 54.95 AMAZON SUPPLIES: MAINTENANCE OF PREMISESMJALEGRIA 12/19/2024 120.88 VONS MEAL: STAFF MEETINGMJALEGRIA 12/23/2024 2.99 APPLE.COM/BILL OPERATION COSTS: ITMJALEGRIA 12/24/2024 830.53 BT *TURE NORTH GEAR SUPPLIES: SAFETYMJALEGRIA 12/27/2024 9.35 USFS POSTAGE: RETURN ON PARTSMJALEGRIA 12/30/2024 91.55 INTL CODE COUNCIL MEMBERSHIP MJALEGRIA 1/3/2025 7.47 VONS SUPPLIESP. HERNANDEZ 12/30/2024 37.94 CHET’S HARDWARE SUPPLIES: SMALL TOOLSP. HERNANDEZ 1/9/2025 13.19 CHET’S HARDWARE SUPPLIES: FLOAT MAINTENANCERUBIO, L. 12/19/2024 98.99 CHETS HARDWARE SUPPLIES: VEHICLE MAINTENANCERUBIO, L. 12/19/2024 38.48 CHET’S HARDWARE SUPPLIES: SMALL TOOLSRUBIO, L. 12/23/2024 120.00 CHETS HARDWARE SUPPLIES: VEHICLE MAINTENANCERUBIO, L. 1/8/2025 193.46 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCERUBIO, L. 1/9/2025 32.97 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE RUBIO, L. 1/13/2025 2S.28 CHETS HARDWARE SUPPLIES VEHICLE MAINTENANCE RUBIO, L. 1/14/2025 54.74 AUTOZONE SUPPLIES: VEHICLE MAINTENANCE CAMPBELL, C 1/13/202S 14.99 CANVA SUBSCRIPTION: IT
SCHMIDT 12/18/2024 . J.W.PEPPER FRAUD NOT PAID ( $352.99 CREDIT)SCHMIDT 12/26/2024 92.08 ORG. ANOTONIOS PIZZERIA MEAL: STAFFSCHMIDT 12/27/2024 338.11 ULINE *SHIP SUPPLIES SUPPLIES: SPECIAL DEPT. EXPENSESCHMIDT 1/2/2025 2.86 CHETS HARDWARE SUPPLIES: MAINTENANCE OF PREMISESSCHMIDT 1/2/2025 17.96 CHETS HARDWARE SUPPLIES: MAINTENANCE OF PREMISESSCHMIDT 1/6/2025 50000 DATATEL COMMUNICATIONS OPERATION COSTS: ITSCHMIDT 1/9/2025 90.62 VONS SUPPLIES: STORMSCHMIDT 1/10/2025 82.56 VONS SUPPLIES: STORMSCHMIDT 1/14/202S 300.00 CANVA SUBSCRIPTION ITSCHMIDT 1/14/2025 19.00 SENDHUB OPERATION COSTS: IT
CITY OF AVALON
WARRANT DISRURSEMENTS
February 10, 2025
$ 90,934.75
CHECK DATE
NUMRER ISSUED AMOUNT NAME DESCRIPTION
3942E 02/05/2025 2,030.01 ESG ENGINEERING SERVICE: PUBLIC WORES39427 02/05/2025 900.00 ESG ENGINEERING SERVICE: PUREIC SVORKS39420 02/05/2025 217.60 ESG ENGINEERING SERVICE PUREIC WORKS39429 02/OS/202S 12,905.60 ESG ENGINEERING SERVICE: PUREIE WORKS39430 02/05/202S 2,2RS2S ESG ENGINEERING SERVICE: PUBLIC WORKS39431 02/OS/202S 2,9S208 ESG ENGINEERING SERVICE: PUBLIC WORKS39432 02/09/202S 000.00 550 ENGINEERING SERVICE: PURLIC WORKS39433 02/0S/2R2S 1,3S7.33 ESG ENGINEERING SERVICE: PURLIC WORKS 39434 02/05/2025 2,200.00 ESG ENGINEERING SERVICE: PURI.IC WORKS39435 02/OS/202S S0,6E2.ES ESO ENGINEERING SERVICE: PURI.IC WORKS 39436 02/05/2025 3,S07.00 ESG ENGINEERING SERVICE: PURLIC WORKS39437 02/RS/202S 360.00 ESO ENGINEERING SERVICE: PURLIC WORKS 39430 02/OS/202S 1,464.43 ESO ENGINEERING SERVICE: PURLIC WORKS39439 02/OS/202S 1,690.43 ESG ENGINEERING SERVICE: PUBLIC WORKS 39440 02/09/2025 18,900.00 ESO ENGINEERING SERVICE PURLIC WORKS39441 02/05/2029 10,720.08 550 ENGINEERING SERVICE: PUBLIC WORKS39442 02/OS/202S 920.00 550 ENGINEERING SERVICE: PURLIC WORKS39443 02/OS/202S 1,120.00 ESO ENGINEERING SERVICE: PUBLIC WORKS39444 R2/OS/202S 1,134.00 ESG ENGINEERING SERVICE: PUBLIC WORKS3944S 0210Sf 202S 830.09 ESO ENGINEERING SERVICE PUBLIC WORKS 39446 02/OS/202S 1,900.00 ESO ENGINEERING SERVICE: PUBLIC WORES39447 02/OS/202S 7,866.00 ESG ENGINEERING SERVICE PGBLIC WORKS 39440 02/OS/202S 100.00 ESO ENGINEERING SERVICE PUBLIC WORKS39449 02/OS/202S 1,692.00 ESG ENGINEERING SERVICE PGBLIC WORKS394S0 02/OS/202S 220.00 ESG ENGINEERING SERVICE PUBLIC WORKS394S1 02/OS/202S 3,363.80 ESG ENGINEERING SERVICE PUBLIC WORKS394S2 02/05/2029 2,304.20 ESG ENGINEERING SERVICE PUBLIC WORKS394S3 02/OS/202S 1,714.50 ESG ENGINEERING SERVICE. PUBLIC WORKS39494 02/05/2029 170.50 ESG ENGINEERING SERVICE: PUBLIC WORKS39499 02/OS/202S S40.00 ESO ENGINEERING SERVICE: PUBLIC WORKS39496 02/OS/202S 920.00 ESG ENGINEERING SERVICE: PUBLIC WORKS
CITY OP AVALON
WARRANT DISBURSEMENTS
February lB. 2025
CHECK DATE
NUMBER ISSUED
39457 2/6/202539458 2/6/2025
39459 2/6/202539460 2/6/202539461 2/6/202539462 2/6/202539463 2/6/2025 39464 2/6/202539465 2/6/2025
39466 2/6/202539467 2/6/202539468 2/6/202539469 2/6/202539470 2/6/202539471 2/6/2025 39471 2/6/2025
39472 2/6/2025
39473 2/6/2025
39474 2/6/202539475 2/6/202539476 2/6/2025
39477 2/6/2025
39476 2/6/202539479 2/6/2025
39460 2/6/2025
39401 2/6/2025
39462 2/6/202539483 2/6/2025
39484 2/6/202539485 2/6/202539486 2/6/202539487 2/6/202539466 2/6/202539469 2/6/202539490 2/6/202539491 2/6/202539492 2/6/202539493 2/6/202539494 2/6/202539495 2/6/202539496 2/6/2025 39497 2/6/2025
39498 2/6/202539499 2/6/202539500 2/6/202539501 2/6/2025
AMOUNT NAME
2,497.58 AAA OIL INC
90.70 AIR SOURCE INDUSTRIES
5,888.96 AMAZON CAPITAL SERVICES, INC.
13,219.17 AMAZON CAPITAL SERVICES, INC.
1,790.66 AT & T
193,368.78 CR&R INCORPORATED
AVALON EREIOHT SERVICES, LLC
3,744.24 AVALON FREIOHT SERVICES, LIC
1,321.54 CART MART. INC.
159.65 CATALINA BROADBAND SOLUTIONS
67,179.40 CATALINA EXPRESS
625.00 CATALINA ISLAND YACHT CLUB
90.00 CATALINA ISLANDER
49,033.25 CIRCUITTOANSIT, INC.
171,46267 CO OF LOS ANOELES SHERIFF’S DEPT.
6,773.06 CO OP LOS ANOELES SHERIFF’S DEPT.
2,627.60 DAPEER, ROSENRLIT & LITVAK,LLP
842 00 DEWEY PEST CONTROL
1,240.20 DION & SONS MARINE FUELS INC
407.S0 ESPRY, INC.
12,32S.00 LOCALITY MEDIA, INC.
4S0.00 OLADWELL OOVERNMENTAL SERVICES, INC97S.62 ORAINOER 3,268.09 HARRY’S MARINE SERVICE, LLC6,737 16 HOME DEPOT CREDIT SERVICES3,36S.00 ICC OENERAL CODE, INC.S,2R3.00 LA BEDIONAL WATER OUALITY CONTROL 428.11 LINDE OAS A EOUIPMENT INC.910.S0 MASA
1,329.S2 MAflHEWS INTERNATIONAL CORPORATION
76.27 MCMASTERCARR
344.E0 MM INTERNET, INC.
S,729.76 MOTOROLA SOLUTIONS, INC.
676.63 NAPA AUTO PARTS
XSO,344.66 PERC WATER
7,260.00 POLYDYNE, INC.
618.17 PTM DOCUMENT SYSTEMS
0,RSO.B2 OUILL CORP
2,139.66 RICOH AMERICAS CORP
13.2S BICOH USA, INC.
300.00 RIVERA, CRISTINA
1,000.00 RSO, INC
4,10S.30 SUPERION, LLCS,000.00 TOWNSEND PUBLIC AFFAIRS, INC 700.72 CORPORATE PAYMENT SYSTEMS411.43 XEROX CORPORATION $ 7S9,667.99
DESCRIPTION
FUEL: ALL DEPARTMENTSSUPPLIES: FIRE
SUPPLIES: ALL DEPARTMENTSSUPPLIES: FIRE ORANTCOMMUNICATIONS: ALLCONTRACT SERVICES: 12/2024VOID: MULTI STUB CHECK FREIDHT: ALL DEPARTMENTS
SERVICE: TRANSITSERVICE: PUBLIC WORKSSUBSIDY: 12/2024
HOLIDAY PARTY 2024
ADVERTISINO: PLANNINOCONTRACT SERVICES: 01/2025
RESIDENT DEPUTY: 02/2024
WATERFXONT PATROL: 11/2024SERVICE: VEHICLESSERVICE: ALL DEPARTMENTS FUEL: HARBOR
SERVICE: ITSOFTWARE: FIRESERVICE: ADMINISTRATIONSUPPLIES: PUBLIC WORKSSERVICE: HARBORSUPPLIES: PUBLIC WORKSSUPPLIES PUBLIC WORKSSERVICE: CIP 160003SUPPLIES: WELDINO DUES: 02/2025SUPPLIES: CEMETERY
SUPPLIES: PUBLIC WORKS
SERVICE: IT
SERVICE: FIRE AUDIOSUPPLIES: OARAOECONYRACT SERVICES 12/2024 SUPPLIES: WWTPSUPPLIES FINANCESUPPLIES: ALL DEPARTMENTS COPIER LEASE: PLANNIND
COPIER LEASE: PLANNINOREFUND: TREMONT HALL DEPOSITSERVICE: HOUSINO AUTHOBITYSOFTWARE LEASE FINANCECONTRACT SERVICES: ADMINISTRATIONSEE ACEACHED DETAILCOPIER LEASE ADMINISTRATION Pago S of 1
CITY OF AVALON
WARRANT DISBURSEMENTS
Februarp SB, 2025
CHECK DATE
NUMBER ISSUED
39339 2/5/202539318 2/5/202539302 2/5/202539313 2/5/202539340 2/5/20253935] 2/5/202539338 2/5/202539342 2/5/2025 39329 2/5/202539326 2/5/2025
39346 2/5/2025
3931] 2/5/202539343 2/5/202539354 2/5/202539324 2/5/202539348 2/5/20253933] 2/5/202539330 2/5/202539350 2/5/202538R39 2/6/202539325 2/5/2025 39349 2/5/2025
39311 2/5/202539338 2/5/202539305 2/5/202539301 2/5/202539323 2/5/202539331 2/5/202539333 2/5/202539308 2/5/202539352 2/5/202539353 2/5/202539335 2/5/202539342 2/5/202539303 2/5/202539332 2/5/202539345 2/5/202539327 2/5/202539319 2/5/202539315 2/5/202539344 2/5/202539320 2/5/202539306 2/S/202S
AMOUNT NAME
(71.2]) MCMASTER-CARR(9000) CATALINA ISLANDER(90.70) AIB SOURCE INDUSTRIES (1S9.RS) CATALINA BROADBAND SOLUTIONS(344.10) MM INTERNET, INC.(411.43) XEBOS CORPORATION(428.11) LINDE OAS & EOUIPMENT INC(436.8]) OUILL CORP(450.00) OLADWELL GOVERNMENTAL SERVICES. INC)48].S0) ESPRY, INC.(618.1]) PTM DOCUMENT SYSTEMS)62S.00) CATALINA ISLAND SACHT CLUB(676.63) NAPA AUTO PARTS )]00.7S) CORPORATE PATMENT STSTEMS
(842.00) DEWET PEST CONTROL(908.90) RICOH AMERICAS CORP)91R.SR) MASA)9]S,62) OBAINOER (1,000.00) RSG, INC)1,213,S9) OUILL CORP(1,240.20) DION & SONS MARINE PUELS INC(1,244.01) RICOH USA, INC.)1,321.S4) CART MART, INC.)1,329.S2) MATENEWS INTERNATIONAL CORPORATION(1,790.86) AT & T)2,49].SR) AAA OIL INC(2,627.80) DAFEEB, ROSENBLIT & LITVAK,LLP(3,268.19) HARRT’S MARINE SERVICE, LLC)T,36S.00) ICC DENERAL COOL INC.(3,744.24) AVALON FREIGHT SERVICES, LLC)4,1OS.30) SUPERION, LLC)S,000.00) TOWNSEND PUBLIC AFFAIRS, INC)S,263.00) LA REGIONAL WATER OUALITT CONTROL)S,]29.28) MOTOROLA SOLUTIONS, INC.)S,RRR.96) AMAZON CAPITAL SERVICES, INC.(6,737.16) HOME DEPOT CREDIT SERVICES(7,260.00) POLTDYNE, INC. )12,32S.00) LOCALITY MEDIA, INC.)49,033.2S) CIRCUIT TRANSIT, INC.(87,179.40) CATALINA ESPRESS (150,374.68) PERC WATER)180,23S.9S) CO. OF LOS ANGELES SHERIFF’S DEPT(193,368.28) CR69 INCORPORATED
DESCRIPTION
VOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERROR VOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USPS MAILING ERRORVOID: USFS MAILING ERRORVOID: USPS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERROR VOID: USFS MAILING ERROR
VOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERRORVOID: USFS MAILING ERROR $ (746,379.19)
Pa9e 1 ofT
CITY OF AVALON
US BANK CBEOIT CARO CHARGES FAID FEBRUARY 7,2024
February SB, 2025
EAST NAME FORT DATE AMT USD VENDOR DESCRIPTION DEPARTMENTGILBERT 12/4/2024 11553 FEBBLT BEACH BUILDING SUPPLY SUPPLIES MAINTENANCE GE FBEMISES WWTF PLANNING & BUILDINGGILBERT 12/B/2024 21.E3 CHET’S HARDWABE SUPPLIES MAINTENANLE GE PHEMISES HARBOR PLANNING & BUILDING GILBERT 12/4/2024 434B CHETS HARDWARE SUPPLIES: MAINTENANCE GE PREMISES HABBGB PLANNING & BUILDINGGILBERT 12/9/2024 347.52 PEBBLT BEACH BUILDING SUFPLY SUPPLIES MAINTENANCE GF PREMISES HABBGB PLANNING & BUILDINGGILBERT 12/11/2024 9R.9B CHET’S HARGWABE SUPPLIES MAINTENANCE GE PREMISES HABBGB PLANNING & BUILDINGGILBERT 52/11/2024 73 B3 CHET’S HARDWARE SUPPLIES MAINTENANCE GE PREMISES HABBGR PLANNING & BUILDING $ 70075 CHECK NUMBER 39500
PaBe 1 of 1
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: ____________ ORIGINATING DEP: Finance CITY MANAGER: ____________ PREPARED BY: Matthew Baker, Finance Director SUBJECT: FY25 Mid-Year Financial Results and Proposed Budget Amendments
RECOMMENDED ACTION(S): 1. Receive the report of the Mid-Year Financial Results forFY24-25; and 2. Adopt a resolution authorizing the proposed budget amendments as outlined inExhibit A to this report.
BACKGROUND: On June 18, 2024, City Council adopted the City’s annual operating and capital budget for the fiscal year ending June 30, 2025 (FY25). The adopted budget reflects estimated General Fund revenues and transfers-in totaling $19.51 million comprised of operating revenues totaling $12.84 million and grants and transfers totaling $6.67 million. General Fund appropriations total $23.51, with recurring operating expenditures totaling $12.48, capital outlays totaling $10.04 million and transfers to other funds totaling $995 thousand. Recurring revenues exceed recurring expenditures by $361 thousand with reserves to be utilized to fund one-timecapital outlays. The adopted budget for the Harbor Fund includes fund revenues totaling $16.60 million, comprised of $9.22 million in operating revenues and $7.38 million in grants and other non-operating revenues. Harbor Fund appropriations total $19.56 million with $8.44 million in operating expenditures and $11.12 million in capital outlays. Similar to the General Fund, recurring revenues exceed recurring expenditures, with reserves utilized to fund significant capital outlays. Sewer, Saltwater, and Solid Waste Funds were budgeted to align with the cost of service study adopted by City Council on June 1, 2021.
REPORT SUMMARY: The unaudited revenue and expenditure figures for activity through December 31 have been compiled to provide a comparative update to the adopted budget. Due to the timing of when certain revenues are received or when funds are expended (e.g. visitordriven revenues peak during first quarter, insurance premiums paid during first half of year), amounts may be greater or less than 50% of the budgeted amounts as of December 3 1st. Ingeneral, the report includes comparisons to the prior two fiscal years; however, the timing of expenditures may vary from year-to-year impacting comparisons. The report is structured to review operating revenues and expenditures separately from grants and capital outlays.
As part of the mid-year budget process, Management reviewed expenditures to identify accounts where expenditures exceed or are on pace to exceed budgeted amounts. Proposed amendments to the budget are requested in the report and outlined in Exhibit A. Under the City’s Budget and Fiscal Policies adopted with the FY25 Budget, the City Manager has the authority to make budget adjustments within departments and expenditure categories under certain I
prescribed amounts provided no additional funds are expended. See Exhibit B for a list of budget adjustments made as part of this mid-year review.
During the first half of the fiscal year, the City Council approved the following budget amendments listed below which are included in the resolution to further memorialize their adoption.
• August 6, 2024 — City Council amended the budget for the Crescent Avenue Stairway project (CIP Project #205002 I Account #10550-6547) by $358,977 for a total project sum of $875,000.
• November 5, 2024 — City Council amended the budget for Vehicle Replacement (Account #13825-6781) by $15,000 for the procurement of a 2024 Isuzu NRR truck. • December 17, 2024 — City Council amended the budget for Building Inspector Services (Account #10255-5128) by $75,000 and awarded a contract to 4LEAF, Inc. to providebuilding division services and additional on-call consulting services.
General Fund Operations
FY25 operating revenues total $6,992,317 as of December 31st (54.5% of budgeted) compared to $7,084,334 (49.1% of actual) in FY24 and $6,851,379 (47.4% of actual) in FY23. FY25 operating expenditures, total $6,594,571 at mid-year (52.8% of budgeted) compared to$5,709,125 (50.6% of actual) in FY24 $4,968,439 (47.9% of actual) in FY23. See below for a comparison to prior mid-year activity by major revenue source and department. Net operating revenue is before capital outlays and transfers to other funds.
General Fund FY25 Budget FY25 Mid-Year FY24 Mid-Year FY23 Mid-Year Revenue TOT—Hotel $5,100,000 $2,903,851 $3,014,692 $3,256,760
TOT—Vac. Rentals 2,400,000 1,554,708 1,547,136 1,541,341 Sales Tax 1,340,000 625,687 579,151 635,435
PropertyTax 1,585,000 99,893 76,655 112,824
Admissions Tax 780,000 441,446 434,244 405,963
Other Revenues 1,636,350 1,366,731 1,432,455 899,056Subtotal $12,841,350 $6,992,316 $7,084,334 $6,851,379 Operating Expenditures by Department
Law Enforcement (2,386,594) (928,601) (883,911) (614,785) Fire Department (3,510,024) (2,022,853) (1,812,391) (1,645,480) Public Works1 (1,915,399) (1,051,368) (883,319) (775,337) 1 Public Works departmental expenditures divided between the General Fund and the Harbor Fund. 2 General Fund FY25 Budget FY25 Mid-Year FY24 Mid-Year FY23 Mid-Year Revenue Planning (690,809) (389,530) (273,327) (426,148)
Recreation (1,337,273) (740,660) (654,783) (575,057)
Chamber Marketing (1,650,000) (962,500) (627,000) (660,919) Other (989,854) (499,059) (574,394) (270,713)
Subtotal ($1 2,479,955) ($6,594,571) ($5,709,125) ($4,968,439) Revenue (Loss) $361,395 $397,745 $1,375,209 $1,882,940
General Fund Revenues
Transient occupancy tax is the largest revenue source in the General Fund and accounts for
58.4% of budgeted operating revenues in FY25. The adopted budget estimated TOT revenues to be $7.5 million, significantly higher than pre-COVID activity but approximately 4.4% below TOT from the prior fiscal year. While TOT is currently on track to exceed budget estimates by approximately $250 thousand, revenues are down slightly from the prior fiscal year even after factoring the impacts of the tropical storm during August 2023 on TOT revenue in the prior year.
Transient Occupancy Tax (Combined)
Month FY22 Actual FY23 Actual FY24 Actual FY25 Budget FY25 YTD2 July $1,328,769 1,495,523 $1,453,138 $1,302,159 $1,430,674 August 1,233,358 1,286,829 1,125,615 1,109,875 1,231,397 September 891,078 919,189 882,220 819,662 837,238
October 774,119 753,804 731,279 687,759 658,229
November 468,056 413,868 403,552 391,332 375,596
December 301,314 277,464 260,069 255,366
January 242,453 207,915 207,135 200,161
February 326,745 231,959 199,744 230,891March 532,350 430,643 442,114 427,750 April 742,154 575,504 498,696 552,944
May 739,113 659,208 648,575 623,127
June — 1,055,940 950,388 946,691 898,974
Audit 58,729 81,387 47,970 -
Total $8,694,178 $8,283,681 $7,846,798 $7,500,000 $4,533,134 Sales tax, admission tax, and other visitor-driven tax revenues in the General Fund are also currently on track to meet or exceed budget estimates. The City’s sales tax revenues during thisyear’s peak visitor season (July through September) totaled $545,103. This reflects a 9.8% increase in taxable sales activity from the summer of 2023 but down 2.6% from its peak during 2 FY24 YTD includes TOT revenues for the month of November collected during the month of January. 3 the summer of 2022. The increase in the current fiscal year is partially attributable to the tropical storm’s impact on the prior year’s taxable sales activity. Property tax revenues are primarily received during the second half of the fiscal year with the first residual and pass-through property tax remittance received in January 2025 totaling $447,265 (59.6% of budgeted) not reflected in the midyear figures. Other revenues include ambulance revenues of $223,928 (44.8% of budgeted), as well as interest income and market adjustments to be allocated across all funds.
The 0.5% sales tax pass and the Measure H collections are not included in other revenues as the funds are either restricted or passed through to Catalina Island Health.
General Fund Expenditures
General Fund operating expenditures include salaries and benefits, maintenance and operating costs, as well as certain contract services, for the majority of City departments, including Planning, Recreation, Fire, and Public Works. Through December 31st, operating expenditures are up $919 thousand or 16.1% compared to the prior fiscal year. The increase is partially attributable to budgeted increases in internal service allocations with $425 thousand attributable to General Administration, Insurance and Vehicle Maintenance. Increased insurance costs and increased staffing, including a third mechanic position and IT Manager position, and the timing of capital acquisitions for the garage account for the majority of the increase. Below is abreakdown of activity by department:
DEPARTMENT FY25 Budget FY25 YTD % of Budget
Law Enforcement (10240) $2,386,594 $928,601 38.9%
Salaries and Benefits -
- 0.0%
Maintenance and Operations - - 0.0%
Contract Services 2,262,000 871,572 38.5%
Internal Services 124,594 57,029 45.8%
Fire (10245) $3,510,024 $2,022,853 57.6%
Salaries and Benefits 2,546,490 1,466,999 57.6%
Maintenance and Operations 234,200 1 18,865 50.8%
Contract Services -
-
-
Internal Services 729,251 436,990 59.9%
Public Works (10250) $1,915,399 $1,051,368 54.9%
Salaries and Benefits 831,015 498,521 60.0%
Maintenance and Operations 356,448 160,253 45.0%
Contract Services 75,000 - 0.0%
Internal Services 652,904 404,898 62.0%
Planning (10255) $690,809 $389,530 56.4%
Salaries and Benefits 241,780 121,790 50.4%
Maintenance and Operations 47,000 22,726 48.4%
Contract Services 257,000 162,081 63.1%
Internal Services 145,018 - 82,933 57.2%
Recreation (10260110265) $1,337,273 $740,660 55.4%
Salaries and Benefits 429,681 243,461 56.7%
Maintenance and Operations 341,862 190,322 55.7%
4 DEPARTMENT FY25 Budget FY25 YTD % of Budget
Contract Services 36500 3,204 8.8%
Internal Services 529,208 303,673 57.4%
Other (Various)3 $2,639,854 $1,476,768 55.9%
Salaries and Benefits 107,300 90,617 84.5%
Maintenance and Operations 144,000 44,978 31.2%
Contract Services 1,827,500 1,020,659 55.9%
Internal Services 561,042 320,514 57.1%
Utilities in the General Fund have increased significantly from the prior fiscal year, driven by increased water usage at the Cemetery and other City properties. Management is requesting an amendment increasing the Utilities — General (Account No. 10250-4505) by $30,000 to$140,000. City Staff are reviewing impacted meters to ensure increases are not attributable to leaks; however, the increase does not appear to be attributable to leaks based on month-tomonth variation in activity.
Management is also requesting an amendment increasing the Park Facilities (Account No. 10265-5644) budget by $16,000 to cover the purchase of a new scoreboard. The costs associated with this acquisition will be reimbursed by donations from Curtin Maritime and the Avalon Lion’s Club.
Salaries and Benefits for Other reflects the portion of Management’s time charged to the administration of the Successor Agency. While the midyear amount exceeds 50%, Finance identified and corrected its payroll allocations to align with budgeted amounts and the amounts will be corrected over the second half of the year without requiring any amendments.
Special Revenue Fund Expenditures
Code Enforcement has been working additional hours to ensure coverage during periods where team members are out of the office on approved accruals (e.g. sick, vacation, etc.). Management is proposing the creation of a new part-time Parking Enforcement Officer position to assist with the enforcement of parking, traffic control, and pedestrian management on cruise ship days, special events, and busy holiday weekends. This will also allow the existing Code Enforcement Officers to focus on more complex tasks, including building, animal, and vehicle abatement.
Management is requesting an amendment to the budget increasing the Salaries — Part-Time (Account No. 11645-3012) by $16,000, Overtime (Account No. 11645-3030) by $2,000 and Animal Control (Account No. 11645-5660) budgets to allow for this new position.
Harbor Fund Operations
FY25 harbor operating revenues total $5,418,618 as of December 31st (58.8% of budgeted) compared to $5,333,755 (57.9% of actual) in FY24 and $5,288,176 (56.0% of actual) in FY23.
FY24 harbor operating expenditures, including internal service allocations, total $4,619,447 (54.7% of budgeted) at mid-year compared to $3,820,511 (49.6% of actual) in FY24 and $3,747,441 (53.0% of actual). Revenues dedicated to capital outlays and grant revenues are Other includes Chamber Marketing (10260-5650).
5 included in a separate section in this report. See below for a comparison to prior mid-year activity by major revenue source and department.
Harbor Fund FY25 Budget FY25 Mid-Year FY24 Mid-Year FY23 Mid-Year Wharfage — Cross $2,375,000 $1,349,209 $1,262,656 $1,320,741 Channel (Fund 103)Wharfage — Cruise 1,800,000 560,570 731,890 764,220 Ship Moorings - Nightly 1,925,000 1,453,134 1,309,905 1,222,930 Tideland Rentals 625,000 332,651 325,867 308,132
Harbor Use Fees 625,000 396,864 350,137 385,937 and Admissions Tax Other Revenues4 465,000 529,730 599,385 496,674
Wharfage — Cross 1,400,000 796,460 753,915 789,542 Channel (Fund 104) Subtotal $9,215,000 $5,418,618 $5,333,755 $5,288,176
Operating Expenditures by Function
Administration (1 ,034,260) (652,863) (555,887) (491 ,356) Operations (4,162,029) (2,313,961) (2,141,065) (1,944,366) PublicWorks5 (2,567,900) (1,191,819) (1,114,171) (1,063,830) Fuel Dock6 (25,000) (59,984) (9,388) - Harbor Capital (651,650) (400,820) (291,821) (247,889) Subtotal (8,440,839) (4,619,447) ($4,111,332) ($3,747,441) Net Operating $774,161 $799,171 $971,423 $1,542,285 Revenue (Loss) Harbor Fund RevenuesCross channel wharfage charges are the largest source of operating revenues in the harbor, with $1 .87 of the $3.00 per passenger charge each way used to fund operating costs, while the remainder is dedicated to funding capital projects in the harbor. Cross channel wharfage fees, both operating and capital, represent 41 .0% of the harbor’s non-grant revenues in FY25. Cruiseship wharfage, a $5.00 per passenger charge on manifest passengers, represents an additional Other harbor revenues include annual mooring permits and transfer fees.
Public Works departmental expenditures divided between the General Fund and the Harbor Fund. 6 While fuel dock operations were contracted through operating lease during second half of FY21, the City is still responsible for certain operating expenditures.
6 19.5% of non-grant harbor revenues. Wharfage revenues combined account for over 60% of harbor revenues and require annual visitor growth in order to increase revenues as the perpassenger rates have not increased for several years.
Through December 31, 2024, cross channel wharfage was slightly ahead of budget estimates by $66 thousand or 3.2%, largely to due to a strong performance during the month of September 2024.
Cross Channel Wharfage (Combined)Month FY22 Actual FY23 Actual FY24 Actual FY25 Budget FY25 YTD7 July $603,507 $608,590 $624,205 $585,000 $595,809
August 520,548 563,261 487,883 542,000 554,747
September 406,725 401,729 398,244 387,000 429,327October 327,726 323,907 317,045 312,000 305,265 November 283,194 212,609 231,660 205,000 211,855
December 172,563 175,532 178,873 169,000 -
January 152,370 126,904 143,791 122,000 -
February 211,572 153,543 140,363 148,000 -March 320,070 225,568 255,983 217,000 - April 397,473 316,875 287,040 305,000 -
May 394,884 338,953 363,038 326,000 -
June 505,425 448,285 476,746 432,000 -
Total $4,296,057 $3,895,756 $3,904,871 $3,750,000 $2,097,003 As of December 31, 2024, cruise ship wharfage is on track to meet budget estimates with revenues of $802 thousand. The difference in revenue to date compared to the prior year is largely attributable to differences in the cruise ship schedule with 46 arrivals during the first half of the current year compared to 62 during the prior year over the same period.
Harbor Fund Expenditures
Harbor Fund operating expenditures include salaries, benefits, maintenance and operating costs, as well as certain contracted services in the harbor. Harbor operating expenditures have been divided into the following functions to facilitate review. Administration includes the HarborMaster, Assistant Harbor Master, Senior Administrative assistant and operating costs such asharbor-specific insurance and mooring software. Operations includes Harbor Patrol and dedicated harbor maintenance personnel. Public Works includes contracted lifeguard services, waterfront trash collection and restroom maintenance, as well as a portion of Public Works Maintenance Workers’ salaries and benefits. Below is a breakdown of activity by function and expenditure type.
Function FY25 Budget FY25 YTD %of Budget
Administration $1,034,360 $652,863 63.1%
FY24 YTD includes TOT revenues for the month of November collected during the month of January. 7 Function FY25 Budget FY25 YTD % of Budget
Salaries and Benefits 627,820 418,633 66.7%Maintenance and Operations 160,000 118,629 74.1% Contract Services 71,500 14,455 20.2%
Internal Services 175,040 101,146 57.8%
Operations $4,162,029 $2,313,961 55.7%
Salaries and Benefits 2,330,799 1,292,110 55.4%
Maintenance and Operations 717,500 385,589 54.3%
Contract Services 296,500 145,600 49.1%
Internal Services 817,230 490,661 60.0%
Public Works $2,567,900 $1,191,819 46.4%
Salaries and Benefits 529,901 226,309 42.7%
Maintenance and Operations 39,500 9,158 23.2%
Contract Services 1,667,000 764,854 45.9%
Internal Services 331,499 191,498 57.8%
Fuel Dock $25,000 $55,713 222.9%
Salaries and Benefits - - -
Maintenance and Operations 25,000 55,713 222.9%
Contract Services - - -
Internal Services - - -
Harbor Capital $651,650 $353,944 54.3%
Salaries and Benefits 72,850 58,131 79.8%
Maintenance and Operations 266,000 135,169 50.9%
Contract Services 16,000 16,376 102.4%
Internal Services 296,800 144,143 48.6%
The City has observed a significant increase in harbor utilities, particularly water utilities at 1 Casino Way. Based on the timing of the activity, the increase is likely attributable to constructionand post-construction activities related to the fuel tank replacement project. Management is proposing to address these budget accounts with an adjustment rather than allocating additional funds through an amendment. City Staff overestimated increases to its contract for lifeguard services in the adopted budget, with $50,000 available from County Beaches Contract (Account No. 10350-5060) to be reallocated to Utilities (Account No. 10371-4505/4515) to address the budget shortfalls in these accounts. The Budget and Fiscal Policies require adjustments over $25,000 to receive approval from City Council.
Management is requesting an amendment to the Float Storage (Account No. 10470-5702)budget of $10,000, an amendment to the Mooring Maintenance (Account No. 10470-5703)budget of $25,000, and an amendment to the Maintenance of Premises (Account No. 10470- 5700) budget of $25,000 to ensure necessary maintenance is not deferred.
The adopted budget did not account for rent at the Fuel Dock. Management is requesting an amendment to the Rent — Casino Fuel Tanks (Account No. 11470-4635) budget of $83,000 tocover annual rent costs.
Other Enterprise Funds (Sewer, Saltwater, Solid Waste, Transit) 8 Sewer, Saltwater, and Solid Waste Fund revenues are collected through direct assessment fees placed on property tax bills which the County collects on the City’s behalf. The City receives its first major remittance of direct assessments in its December payment from the County.
Revenues received are in-line with estimates for Sewer, Saltwater and Solid Waste. Below is a breakdown of operating expenditure activity by fund.
Fund FY25 Budget FY25YTD %of Budget
Sewer $2,925,405 $1,366,311 7 46.7%
Salaries and Benefits 334,128 198,208 59.3%
Maintenance and Operations 526,950 163,555 31.0%Contract Services 1,648,000 749,292 45.5% Internal Services 416,327 255,263 61.3%
Saltwater $696,702 $351,514 50.5%
Salaries and Benefits 250,214 142,750 57.1%
Maintenance and Operations 7,655 746 9.7%
Contract Services 335,060 148,842 44.4%
Internal Services 103,773 59,176 57.0%
Solid Waste $2,535,465 $1,237,855 48.8%
Salaries and Benefits 27,121 15,608 57.5%
Maintenance and Operations 26,500 14,177 53.5%
Contract Services 2,362,000 938,832 39.7%
Internal Services 186,064 106,501 57.2%
Management is requesting an amendment to increase its Professional Services — Cease andDesist Odor (10725-5009) budget by $60,000 to $240,000. The additional funds will coverneeded chemicals and other supplies at the waste water treatment plant for the purpose of odor control and to comply with state regulatory permit requirements.
Internal Service Funds
Internal Service expenditures cover the following fund activities: General Administration, which includes the City Manager’s office, City Attorney, Finance, General Government, and Elected officials; Insurance, which includes general liability expenses and other litigation-relatedexpenses; and Vehicle Maintenance. These expenditures are allocated to the various funds based on their proportional benefit from fund activities. Allocations are reviewed annually as part of the budget process.
Fund FY25 Budget FY25 YTD % of Budget
General Administration $3,410,934 $1,599,845 46.9%
Salaries and Benefits 2,305,714 1,151,493 49.9%Maintenance and Operations 441,095 190,370 43.2% Contract Services 664,125 257,982 38.8%
Insurance $986,965 $930,200 94.2%
Salaries and Benefits -
-
-
9 Fund FY25 Budget FY25YTD %of Budget
Maintenance and Operations 842,965 885,189 1050%
ContractServices 144,000 45,011 313%
Vehicle Maintenance $544,605 $296,574 54.5%
Salaries and Benefits 309,945 154,425 49.8%
Maintenance and Operations 234,660 142,149 60.6%
Contract Services - - -
Management is requesting an amendment to the City Hall utilities accounts (Accounts 10135- 4505 and 10135-4515) to increase the accounts by $5,000 and $15,000, respectively. The amendment is due to the timing of billing with April, May and June activity billed in August and charged to the current fiscal year.
Management is requesting an amendment to increase its Vehicle/Equipment Maintenance andRepairs (Account No. 13825-5610) budget by $50,000 to $170,000. Significant quantities of parts and supplies are needed prior to the summer season to ensure the fleet is ready peak visitor-season. In addition, the newly acquired vehicles need to be outfitted for use.
City Staff estimate annual insurance costs for general liability and properly insurance during the budget development process with final figures generally not available until after adoption. The adopted budget included $807,965 for Insurance (Account No. 11830-5501); however, actual insurance costs totaled $885,965. Management is requesting to amend the budget by $80,000.
Capital Outlays — General Fund
Below please find a table summarizing the year-to-date activity for capital projects with funding in the current year. The City made its final payment on the JMF capital lease during the first half of the fiscal year.
Project Name Account FY25 Budget FY25 % of
YTD Budget
CrescentAvenue Stairs 10550-6547 458,977 416,136 90.7%Self-Contained Breathing 10245-6547 400,000 311,913 78.0% Apparatus Five Corners Pedestrian 10575-6547 5,300,000 196,175 3.7% Improvements Workforce Housing 10250-6547 150,000 56,257 37.5%
Maintenance Yard Upgrades 10550-6547 250,000 46,004 18.7% City Hall Remodel 10550-6547 50,000 44,555 89.1%
Annual Traffic / Transportation 10550-6547 135,000 38,446 28.5% Improvements Burma Trail Retaining Wall 10550-6547 125,000 30,966 24.8% Cemetery Improvements 13350-6605 50,000 31,948 63.9%
Storm Drain Improvements 12450-6547 40,000 19,321 48.3% 10 Project Name Account FY25 Budget FY25 % of
YTD Budget
Pebbly Beach Road Riprap 10575-6547 2,250,000 3,189 0.1% Repairs Other CIPw/o Expenditures at Various 1,185,000 10,393 0.9% Midyear Total $10,393,977 $1,205,303 11.6%
During the fiscal year, City Staff identified an underutilized portion of City-owned property that currently incorporates the Animal Kennels and Household Hazardous Waste (adjacent to the Waste Water Treatment Plant) to create a space for storing confiscated e-bikes, motorcycles,golf carts, illegal off-road vehicles, and full size vehicles for the vehicle abatement program and LASD impounds. Management is requesting an amendment to the CIP project description for the Animal Kennel Project (Project No. 252501 / Account No. 10550-6687) to also include improvements to the property for the creation of a vehicle storage lot increasing the project budget by $37,000 to $62,000.
Capital Outlays — Harbor Fund
Below please find a table outlining the capital projects in the Harbor Fund with current year budgets in excess of $50,000. Construction is anticipated to occur on a majority of these projects during the second half of the current fiscal year.
Project Name Account FY25 FY25 % of
Budget YTD Budget
Vehicle Replacement— Harbor 10470-6781 190,666 111,748 58.6% Float Rehabilitation — Float 1 10470-6504 200,000 0.0%
Crescent! Front Street Electrical 10470-6504 150,000 21,038 14.0%Clubdock Pier Replacement 10470-6547 496,580 84,987 17.1%Green Pier Repairs! Green Pier 10470-6547 1 050 000 1 028 0.1% Decking Harbor Master Building 10470-6547 100 000 90 113 90.1% Improvements Cabrillo Mole Phase II 10470-6667 8,306,423 73,167 0.9%Casino Way Improvements 10470-6679 150,000 - 0.0%South Beach Seawall 10470-6547 200,000 58,691 29.3%Other CIP Budgeted Under $50,000 Various 275,000 45,600 16.6% Total $11,118,670 $486,372 4.4%
Other Capital Outlays
Below please find a table summarizing capital outlays in special revenue and other enterprise funds.
11 Other Fund CIP Fund FY25 FY25 % of
Budget YTD
Housing Successor Agency 153 $750,000 415,605 55.4%
Street Administration 115 850,000 - 0.0%Sewer 108 964,838 282,233 29.3% Saltwater 113 450,000 1,018 0.2%Solid Waste — Retaining Wall 131 377,385 131 ,324 34.8%Solid Waste—Closure/Post 132 316,000 - 0.0% Solid Waste — Reverse Vending / 132 91 000 16 579 18.2% Composting General Administration 101 50,000 10,069 20.1%
Vehicle Maintenance 138 215,000 210,097 97.7%
The City filled the new full-time IT Manager position during the first half of the fiscal year. Withthis new position, the City is working on the implementation of Microsoft365, as well as cybersecurity and hardware improvements. Management is requesting an amendment to theCIP project description for the Information Systems Project (Project No. 203501 / Account No. 10135-6611) to include the purchase of laptop docking stations, laptops, and desktops (to replace the existing Dell Thin Clients) and the replacement of the File Server (currently Server 1 and Server 2) increasing the project budget by $60,000 to $110,000. The implementation of desktops and replacement of the existing servers will greatly improve productivity by reducingdown-time due to server failures. Its estimated desktop hardware implementation will costapproximately $45,000 with a server replacement of $15,000. Management is also requestingan amendment to the IT - Operation Costs Account (Account No. 101 35-5020) increasing the budgeted amount by $12,000 to $110,000 to cover increased software licensing costs.
GOAL ALIGNMENT: Fiscal stability.
FISCAL IMPACTS: The actions recommended to the City Council by Staff as outlined above will have the following fiscal impacts: Amend the budget as outlined in the Exhibit A to this report.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Deferred maintenanceand other reductions to planned operations to offset budget overages.
FOLLOW UP ACTION: Implement City Council Direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS: Exhibit A - Listing of Proposed Budget Amendments; Exhibit B — Listing of Budget Adjustments; Exhibit C -Expenditure Detail through December 31, 2024 12 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AVALON AMENDING THE FISCAL YEAR 2024-25 BUDGET
WHEREAS, the City Manager prepared and submitted the Proposed Fiscal Year 2024- 25 Budget and Capital Improvement Program (CIP) to the City Council; and WHEREAS, the adopted Fiscal Year 2024-25 operating expenditure budget for all funds and departments totals of $39,256,973, and the Capital Improvement Program with project expenditure budget totals of $25,262,892; and
WHEREAS, the City Council received and filed a mid-year financial report, including a discussion on proposed budget amendments, at the February 4, 2024 City Council Meeting; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF AVALON AS FOLLOWS:
Section 1. The proposed budget amendments for Fiscal Year 2024-25, including the increases of $485,200 in operating expenditures and increases of $460,977 in capital expenditures as set forth in Exhibit A are approved and adopted.
Section 2. The amount of Fiscal Year 2024-25 budget for each account of the budget may be drawn upon warrants in payment of demands in accordance with the provisions of California Government Code 32708 and 32709.
PASSED AND ADOPTED BY the City Council of the City of Avalon, Avalon, California, held on this 1 8th day of February, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ann H. Marshall, Mayor
ATTEST:
Gabrielle Morones, City Clerk
Exhibit A
FY2024-2025 Budget Midyear ReviewProposed Budget Amendments Expenditures thru Adopted FY25 Requested Proposed FY25 Account Description December31 Budget Amendment Amended Budget 10135-4505 UTI LITIES-G EN ERAL 7,629 10,000 5,000 15,00010135-4515 GOVERNMENT UTILITIES-ELECTRI 31,052 45,000 15,000 60,000 10135-5020 OPERATION COSTS-IT 63,537 99,000 12,000 111,00010135-6611 M AND E COMPUTERS 10,069 50,000 50,000 100,00010250-4505 UTI LITIES-G EN ERAL 71,452 110,000 30,000 140,000 10255-5128 BLDG INSPECTOR SERVICES - - 75,000 75,00010265-5644 PARK FACILITIES 8,569 20,000 16,000 36,000 10470-5700 MAINTENANCE OF PREMISES 41,162 50,000 25,000 75,00010470-5702 FLOAT STORAGE 11,266 15,000 10,000 25,00010470-5703 MOORING MAINTENANCE 30,733 40,000 25,000 65,000 10550-6547 CAPITAL IMPROVEMENTS 569,008 935,000 358,977 1,293,97710550-6687 BUILDING IMPROVEMENTS 5,534 75,000 37,000 112,00010725-5009 PROF SRVCS-H25 CONTROL 150,293 180,000 60,000 240,00011645-3010 SALARIES REGULAR - - 15,000 15,000 11645-3030 OVERTIME REGULAR 4,781 4,200 2,000 6,20011645-5660 ANIMAL CONTROL 3,200 2,000 2,000 4,00011830-5501 INSURANCE 885,189 807,965 80,000 887,96513825-5610 VEHICLE/EQUIP MT AND RPR 81,660 120,000 50,000 170,00013825-6781 VEHICLE REPLACEMENT 210,097 200,000 15,000 215,000 1 of 1
Exhibit B
FY2024-2025 Budget Midyear ReviewProposed Budget Adjustments Expenditures thru
Account Description December 31 Adopted FY25 Budget Adjustment Revised FY25 Budget 10110-3050 WORKERS COMP 1,241 1,190 51 1,24
10115-3050 WORKERS COMP 249 238 11 24
10125-3050 WORKERS COMP 75,789 62,297 13,492 75,78
10130-3050 WORKERS COMP 26,816 25,628 1,188 26,8110125-3615 UNIFORMS 1,945 1,875 100 1,9710125-3041 CALPERS UNFUNDED LIAB PMT 151,722 156,796 (3,097) 153,6910130-3041 CALPERS UNFUNDED LIAR PMT 31,155 32,197 (1,042) 31,1510125-3045 HEALTH/LIFE INSURANCE 49,959 139,599 (10,703) 128,8910245-3050 WORKERS COMP 117,324 102,234 15,090 117,32 10245-3041 CALPERS UNFUNDED LIAB PMT 349,191 360,868 (10,417) 350,4510245-3011 SALARIES FIREFIGHTER I 12,114 97,500 (4,673) 92,8210250-3050 WORKERS COMP 35,934 32,553 3,381 35,9310250-3041 CALPERS UNFUNDED LIAB PMT 57,372 59,244 (1,917) 57,3210250-3045 HEALTH/LIFE INSURANCE 61,332 150,486 (1,464) 149,0210250-3625 SPECIAL DEPT EXPENSE 16,144 9,950 10,000 19,95 10250-5701 STORM DAMAGE - 100,000 (10,000) 90,0010255-6685 GEN’L PLAN AND LCP UPDATE 50,253 50,000 1,000 51,0010255-4015 ADVERTISING 727 5,000 (1,000) 4,0010265-5646 TREMONT HALL 3,491 2,500 1,000 3,5010265-5520 BANK AND CC FEES 1,446 5,000 (1,000) 4,00 10371-4505 UTILITIES-GENERAL 14,093 10,000 15,000 25,00 10371-4515 UTILITIES-ELECTRICITY 36,771 50,000 35,000 85,0010350-5060 COUNTY BEACHES CONTRACT 499,291 1,100,000 (50,000) 1,050,0010370-3050 WORKERS COMP 25,635 24,501 1,134 25,6310370-3041 CALPERS UNFUNDED LIAB PMT 89,677 92,676 (1,134) 91,5410371-3050 WORKERS COMP 109,467 96,358 13,109 109,4610371-3041 CALPERS UNFUNDED LIAB PMT 206,695 213,607 (6,912) 206,6910371-3045 HEALTH/LIFE INSURANCE 106,752 229,500 (6,197) 223,3010470-3050 WORKERS COMP 3,057 2,922 135 3,0510470-3041 CALPERS UNFUNDED LIAB PMT 9,973 10,306 (135) 10,1710725-3050 WORKERS COMP 4,024 3,845 179 4,0210750-3050 WORKERS COMP 10,485 9,717 768 10,48 10750-3030 OVERTIME REGULAR 3,465 2,000 1,500 3,5010750-3045 HEALTH/LIFE INSURANCE 17,374 38,868 (2,447) 36,4211225-3050 WORKERS COMP 2,874 2,747 127 2,8711250-3050 WORKERS COMP 8,043 7,490 553 8,0411250-3045 HEALTH/LIFE INSURANCE 12,983 30,480 (680) 29,8012325-3050 WORKERS COMP 1,524 1,457 67 1,5212325-3041 CALPERS UNFUNDED LIAB PMT 7,760 8,020 (67) 7,9513125-3050 WORKERS COMP 1,151 1,057 94 1,15 13125-3041 CALPERS UNFUNDED LIAB PMT 3,180 3,286 (94) 3,1913625-3050 WORKERS COMP 5,150 4,921 250 5,1713625-3041 CALPERS UNFUNDED LIAB PMT 6,328 6,540 (250) 6,2913825-3050 WORKERS COMP 13,985 13,204 1,100 14,3013825-3625 SPECIAL DEPT EXPENSE 659 10,000 (1,100) 9,5515425-3050 WORKERS COMP 2,023 1,933 90 2,0215425-3041 CALPERS UNFUNDED LIAB PMT 3,148 3,253 (90) 3,16 1 of 1
Exhibit C
Fiscal Year 2024-2025 Budget
Expenditure Detail through December 31, 2024
FY25
S FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC31
GENERAL FUND
10240 GEN S & S LAW ENFORCEMENT 1,804,098 2,040,222 2,386,594 2,386,594 928,601 Maintenance & Operations
10240-5510 TRAINING AND TRAVEL 649 266 - - - Contract Services10240-5110 SHERIFFS CONTRACT 1,611,537 1,808,019 2,072,000 2,072,000 857,31410240-5118 SUMMER DEPUTY PRGM (COPS) 79,116 100,160 165,000 165,000 11,67910240-5120 SHERIFFS SUBSISTENCE 5,483 11,314 25,000 25,000 2,578 Internal Services
10240-3046 INSURANCE OVERHEAD ALLOC - - - - 10240-3047 ADMIN OVERHEAD ALLOC 107,313 120,462 124,594 124,594 57,029 lof2S
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 10245-6547 CAPITAL IMPROVEME10245-6781 VEHICLE REPLACEM 12,544 44,615 140,000 140,000
249,139 650,000 650,000 311,913
Salaries & Benefits
FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC 31
10245 GEN S & S FIRE 2,971,157 3,626,026 4,299,941 4,299,941 2,334,766 10245-3010 SALARIES REGULAR 1,084,433 1,169,160 1,083,539 1,083,539 541,946 10245-3011 SALARIES FIREFIGHTER I 31,824 46,036 97,500 92,827 12,11410245-3030 OVERTIME REGULAR 348,281 377,201 365,183 365,183 186,92210245-3040 FICA RETIREMENT 275,323 308,486 299,066 299,066 132,39210245-3041 CALPERS UNFUNDED LIAB PMT 265,560 262,834 360,868 350,451 349,19110245-3045 HEALTH/LIFE INSURANCE 150,175 183,034 201,570 201,570 101,65610245-3050 WORKERS COMP 82,356 104,412 102,234 117,324 117,32410245-3051 UNEMPLOYMENT INS - 2,303 10,230 10,230 - 10245-3070 COMPENSATED ABS - - - - - 10245-3615 UNIFORMS 17,403 27,773 26,300 26,300 25,454 Maintenance & Operations
10245-3545 SAFETY SUPPLIES 5,258 7,430 8,000 8,000 4,01210245-3617 PERSONAL PROTECT EQUIP - 2,036 25,000 25,000 22,06710245-3621 AIR PACK BOTTLES 346 100 3,000 3,000 1610245-3622 FIRE HOSE 1,163 11,328 9,000 9,000 7,53010245-3625 SPECIAL DEPT EXPENSE 36,126 27,127 20,000 20,000 12,76210245-3626 AMBULANCE SUPPLIES 8,389 14,281 10,000 10,000 3,96610245-4005 OFFICE SUPPLIES 1,126 1,754 2,500 2,500 68510245-4010 COMMUNICATIONS 15,789 34,239 19,700 19,700 9,25410245-4580 TELEPHONE AND RADIO COSTS 8 282 11,000 11,000 1,17010245-5505 MEMBERSHIP AND DUES 2,658 14,036 11,500 11,500 6,03110245-5510 TRAINING AND TRAVEL 31,728 38,082 45,000 45,000 23,454 10245-5600 GAS, DIESEL AND OIL 24,954 24,729 30,000 30,000 7,28410245-5611 EQUIPMENT MAINT AND RPR 19 5,400 - - 3,35110245-5700 MAINTENANCE OF PREMISES 42,855 25,947 39,500 39,500 17,282 10245-5721 EMERGENCY MAINT-COVID (138) - - - - Internal Services10245-3046 INSURANCE OVERHEAD ALLOC 120,710 117,389 127,788 127,788 120,226 10245-3047 ADMIN OVERHEAD ALLOC 298,942 335,574 415,312 415,312 190,09510245-5605 VEHICLE OVERHEAD ALLOC 113,326 191,298 186,151 186,151 126,668 Capital Outlay
2 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 10250-5005 PROFESSIONAL SERV10250-5125 TREE TRIMMING SERVICES Internal Services
10250-6547 CAPITAL IMPROVEME10255-6781 VEHICLE REPLACEMENT FY25 Thru
DEC31
FY23
Actual
Salaries & Benefits
FY24
Estimate
FY25
FY25 Proposed
Budget Revisions
10250 GEN S & S PUBLIC WORKS 1,235,497 1,655,799 2,065,367 2,095,367 1,107,625 10250-3010 SALARIES REGULAR 338,257 431,688 456,199 456,199 284,90110250-3012 SALARIES PART TIME - 1,286 24,150 24,150 6,23910250-3030 OVERTIME REGULAR 656 6,314 12,000 12,000 5,16410250-3040 FICA RETIREMENT 50,459 64,409 79,993 79,993 38,745 10250-3041 CALPERS UNFUNDED LIAB PMT 33,931 29,551 59,244 57,327 57,32710250-3045 HEALTH/LIFE INSURANCE 79,279 96,633 150,486 149,022 61,33210250-3050 WORKERS COMP 19,260 36,071 32,553 35,934 35,934 10250-3051 UNEMPLOYMENT INS - 1,537 7,395 7,395 - 10250-3615 UNIFORMS 6,281 10,093 8,995 8,995 8,879 Maintenance & Operations
10250-3545 SAFETY SUPPLIES 10,262 11,262 10,000 10,000 1,23310250-3560 GARDENING SUPPLIES 2,437 3,948 5,000 5,000 - 10250-3562 GARDENING SUPP CEMETERY - - - - - 10250-3565 CEMETERY SUPPLIES 19,767 - - - 9,800 10250-3610 HOLIDAY DECORATIONS 2,402 132 8,000 8,000 3,53110250-362OSMALLTOOLS 20,389 22,658 14,000 14,000 13,14110250-3625 SPECIAL DEPT EXPENSE 35,968 9,656 9,950 19,950 16,144 10250-4005 OFFICE SUPPLIES 167 1,645 1,250 1,250 63910250-4010 COMMUNICATIONS 3,565 5,409 5,248 5,248 3,30610250-4505 UTILITIES-GENERAL 95,309 107,565 110,000 140,000 71,452 10250-4515 UTILITIES-ELECTRI 15,121 17,574 20,000 20,000 7,479 10250-4535 UTILITIES-CEMETERY - - - - 19,060
10250-4602 RENT-FIELD OF DREAMS - - - - - 10250-5510 TRAINING AND TRAVEL 3,215 38,046 18,000 18,000 29810250-5600 GAS, DIESEL AND OIL 51,827 51,690 55,000 55,000 14,27910250-5701 STORM DAMAGE 43,122 116,754 100,000 90,000 (108)10250-5721 EMERGENCY MAINT -COVID - - - - - Contract Services 39,555 56,840 75,000 75,000 (12,304)
10250-3046 INSURANCE OVERHEAD ALLOC 63,580 61,831 85,633 85,633 80,56610250-3047 ADMIN OVERHEAD ALLOC 158,414 177,826 276,875 276,875 126,73010250-5605 VEHICLE OVERHEAD ALLOC 95,194 160,690 290,396 290,396 197,602 Capital Outlay
35,802 134,690 150,000 150,000 56,257
11,279 - - - -3 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25Thru
Actual Estimate Budget Revisions DEC31
10255 GEN S & S PLANNING 777,549 575,186 690,798 766,324 389,530 Salaries & Benefits
10255-3010 SALARIES REGULAR 198,831 162,757 170,456 170,456 83,03410255-3012 SALARIES PART TIME - - - - - 10255-3030 OVERTIME REGULAR 809 717 1,000 1,000 210255-3040 FICA RETIREMENT 27,155 25,069 26,531 26,531 11,919 10255-3041 CALPERS UNFUNDED LIAB PMT 754 - 357 357 34510255-3045 HEALTH/LIFE INSURANCE 31,442 25,263 29,640 29,640 14,02810255-3050 WORKERS COMP 19,542 11,964 11,336 11,862 11,86210255-3051 UNEMPLOYMENT INS - 468 1,860 1,860 - 10255-3615 UNIFORMS - - 600 600 600 Maintenance & Operations
10255-3625 SPECIAL DEPT EXPENSE 2,369 3,283 10,000 10,000 9,855 10255-4005 OFFICE SUPPLIES 2,837 2,682 3,000 3,000 646
10255-4010 COMMUNICATIONS 722 1,579 2,000 2,000 80210255-4015 ADVERTISING 4,381 1,732 5,000 4,000 72710255-4610 RENT-COPIER 19,715 16,154 20,000 20,000 10,23710255-5510 TRAINING AND TRAVEL 487 4,598 2,000 2,000 45810255-SS1OA TRAINING AND TRAVEL - - 5,000 5,000 - Contract Services10255-5005 PROFESSIONAL SERVICES 87,393 138,223 150,000 150,000 81,13510255-5030 CITY ATTORNEY RETAINER 60,067 20,493 50,000 50,000 30,45410255-5034 LEGAL AND PROF SVCS REIMB - - 5,000 5,000 - 10255-5070 PLANNING SERVICES - - - 10255-5128 BLDG INSPECTOR SERVICES - - - 75,000 - 10255-5129 BUILDING PLAN CHECK 153 1,390 2,000 2,000 239 10255-6685 GEN’L PLAN AND LCP UPDATE 173,747 - 50,000 51,000 50,253 Internal Services
10255-3046 INSURANCE OVERHEAD ALLOC 42,387 41,221 34,269 34,269 32,24110255-3047 ADMIN OVERHEAD ALLOC 104,758 117,594 110,750 110,750 50,692 4of25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC 31
10260 GEN S & S COMMUNITY PROMO 2,018,908 2,005,398 2,003,206 2,003,206 1,193,879 Maintenance & Operations
10260-5633 4TH OF JULY PROGRAM 70,694 145,530 139,000 139,000 114,497 10260-5655 HOMELESS PROGRAM 324 2,003 5,000 5,000 - 10260-5634 PUBLIC ART PROJECTS - 5,000 5,000 - Contract Services 10260-5650 CHAMBER MARKETING -TOT 1,826,003 1,726,295 1,650,000 1,650,000 962,500 Internal Services
10260-3046 INSURANCE OVERHEAD ALLOC 35,015 34,052 48,464 48,464 45,59610260-3047 ADMIN OVERHEAD ALLOC 86,872 97,517 155,742 155,742 71,286 10265 GEN S & S RECREATION 1,012,763 1,138,263 1,429,045 1,445,045 509,314 Salaries & Benefits
10265-3010 SALARIES REGULAR 186,644 184,826 165,824 165,824 84,66110265-3012 SALARIES PART TIME 82,825 76,753 104,124 104,124 58,35410265-3030 OVERTIME REGULAR 1,589 3,673 5,000 5,000 35510265-3040 FICA RETIREMENT 37,807 42,671 38,300 38,300 17,34310265-3041 CALPERS UNFUNDED DAB PMT 35,705 33,886 38,615 37,771 37,36510265-3045 HEALTH/LIFE INSURANCE 54,066 64,073 50,520 50,520 25,76110265-3050 WORKERS COMP 26,346 23,590 18,178 19,022 19,02210265-3051 UNEMPLOYMENT INS - 2,673 3,720 3,720 - 10265-3615 UNIFORMS 775 1,126 5,400 5,400 600 5 of 25
Exhibit C
Fiscal Year 2024-2025 Budget
Expenditure Detail through December 31, 2024
FY25
FY23 FY24 FY25 Proposed FY25 Thru
‘ Actual Estimate Budget Revisions DEC31
Maintenance & Operations
10265-3620 SMALL TOOLS 418 1,241 1,000 1,000 336
10265-3625 SPECIAL DEPT EXPENSE 13,503 12,493 10,000 10,000 4,80610265-4005 OFFICE SUPPLIES 1,970 2,183 2,500 2,500 57610265-4010 COMMUNICATIONS 1,743 1,774 2,160 2,160 70010265-4015 ADVERTISING 1,085 - 1,000 1,000 - 10265-4510 UTILITIES-JOE MACHADO ELD 14,487 60,043 40,000 40,000 10,86110265-4603 RENT-WW1 MACHINE GUN PARK - - 1 1 - 10265-4604 RENT-RILEYS POND - - 1 1 - 10265-4605 RENT-TREMONT HALL 1,000 400 2,000 2,000 40010265-5505 MEMBERSHIP AND DUES 456 985 1,200 1,200 - 10265-5510 TRAINING AND TRAVEL 1,222 359 4,000 4,000 222 10265-5520 BANK AND CC FEES 590 4,645 5,000 4,000 1,44610265-5624 REC PROGRAMS -YOUTH 6,545 15,563 13,000 13,000 2,13810265-5625 REC PROGRAMS -ADULT 27,345 3,181 8,000 8,000 - 10265-5626 REC PROGRAMS -CONTRACT SVCS 4,876 10,006 20,000 20,000 8,22410265-5627 TEEN PROGRAM 1,214 - 2,500 2,500 - 10265-5628 SENIOR PROGRAM 5,026 5,443 8,000 8,000 6,99810265-5631 SPECIAL EVENTS PROGRAM 13,545 14,050 23,000 23,000 15,24710265-5638 DAY CAMP 5,403 2,587 6,000 6,000 3,25110265-5641 TEEN/SENIOR PROGRAM 518 46 - - - 10265-5644 PARK FACILITIES 2,391 7,257 20,000 36,000 8,569 10265-5646 TREMONT HALL 2,500 2,271 2,500 3,500 3,491
10265-5647 SKATE PARK 669 1,332 5,000 5,000 - 10265-5649 REC PRGM-SUMMER PROGRAMS 1,672 11,366 10,000 10,000 5,18610265-5654 REC PRGM-FLAG FOOTBALL - 14 - - 204 1026S-5700 MAINTENANCE OF PREMISES 72,767 18,372 6,000 6,000 3,16810265-5721 EMERGENCY MAINT -COVID 57 - - - - Contract Services10265-5105 CONTRACTUAL SERVICES-GEN 6,300 3,430 6,500 6,500 - 10265-5180 SENIOR MEALS PROGRAM - 12,836 30,000 30,000 3,204 Internal Services
10265-3046 INSURANCE OVERHEAD ALLOC 74,637 72,584 75,291 75,291 70,836 10265-3047 ADMIN OVERHEAD ALLOC 183,965 206,507 242,265 242,265 110,88910265-5605 VEHICLE OVERHEAD ALLOC 4,533 7,652 7,446 7,446 5,067 Capital Outlay
10265-6030 RETIREMENT OF PRINCIPAL 130,527 93,809 - - - 10265-6045 INTEREST EXPENSE 6,483 2,711 - - 10265-6544 COMMEMORATIVE BRICKS 16 - - - 3310265-6547 CAPITAL IMPROVEMENTS (456) 129,852 445,000 445,000 -6 of 25 Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 10225 GENL FUND ADMINISTRATION
Internal Services
10225-3046 INSURANCE OVERHEAD ALLOC10225-3047 ADMIN OVERHEAD ALLOC Transfers
10225-6900 TRSFRS OUT-OTHER10225-6920 TRSFRS OUT-CITY INFRASTR10225-6925 TRSFRS OUT-STORM DRAIN 10225-6976 TRSFRS OUT-TRANSPORTATION
10225-6979 TRSFRS OUT-GENL-TRAFFIC
10225-6981 TRSFRS OUT-CDBG 119
10225-6985 TRSFRS OUT-SEWER
10225-6995 TRSFRS OUT-SALT
10550 CITY INFRASTRUCTURE P/W
Capital Outlay
10550-6547 CAPITAL IMPROVEMENTS10550-6687 BUILDING IMPROVEMENTS 10575 CITY INFRASTRUCTURE
Maintenance & Operations
10575-5700 MAINTENANCE OF PREMISES
Capital Outlay
10575-5005 PROFESSIONAL SERVICES
10575-6547 CAPITAL IMPROVEMENTS
12425 STORM DRAIN REPL ADMIN
Maintenance & Operations
12425-5502 MISCELLANEOUS FEES
Contract Services
12425-5030 CITY ATTORNEY RETAINER12425-5105 CONTRACTUAL SERVICES-GEN12425-5109 ENVIRON STRATEGY CNSLTNTS 12450 STORM DRAIN REPL P/W
Capital Outlay
12450-6547 CAPITAL IMPROVEMENTS
Maintenance & Operations
13350-3562 GARDENING SUPP CEMETERY13350-3565 CEMETERY SUPPLIES13350-4535 UTILITIES-CEMETERY13350-5700 MAINTENANCE OF PREMISES Capital Outlay
13350-6605 CEMETERY IMPROVE
FY23 FY24 FY25
Actual Estimate Budget
978,373 960,905 1,555,825
87,538
217,180
170,000
410,000
204,783 204,783
210,000 210,000
569,008
5,534
105,258 129,646 7,550,000 7,550,000 211,289
123,036 135,013 148,500 148,500 38,531 - 6,000 6,000 - 10,940 1,316 37,215
FY25
Proposed
Revisions
1,555,825
FY25 Thru
DEC31
320,514
85,130 131,886 131,886 124,082
243,793 429,156 429,156 196,432
230,949
128,230
185,039
98,08031,356
36,014
121,206
288,802
165,946
20,013
170,000
410,000
151,835 785,867 1,010,000 1,405,977 574,542
147,438
4,398
785,867 935,000 1,293,977 - 75,000 112,000
172,815 316,121 7,620,000 7,620,000 248,514
67,557 184,515 70,000
1,960
70,000 37,225
54,20068,836
36,36087,713
13350 CEMETERY TRUST ADMIN 34,720
60,00082,500
40,000
40,000
60,00082,500
40,000
40,000
19,321
19,321
40,878 117,000 117,000 39,237
1,199
26,684
1,470
5,367
11,64417,830
977
10,428
10,000
50,000
7,000
50,000
10,000
50,000
7,000
50,000
4,367
2,922
31,948
7 of 25
Exhibit C
Fiscal Year 2024-2025 Budget
Expenditure Detail through December 31, 2024
FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC 31
13625 REDEVEI. REIMB ADMIN 233,239 206,618 143,300 143,050 95,500 Salaries & Benefits
13625-3010 SALARIES REGULAR 145,253 134,969 74,436 74,436 70,967 13625-3030 OVERTIME REGULAR 66 50
-
- 51
13625-3040 FICA RETIREMENT 23,635 20,086 11,749 11,749 3,802 13625-3041 CALPERS UNFUNDED LIAB PMT 20,846 18,374 6,540 6,290 6,328 13625-3045 l-IEALTI-l/LIFE INSURANCE 16,307 11,682 9,282 9,032 4,199 13625-3050 WORKERS COMP 7,083 7,861 4,921 5,171 5,150
13625-305 1 UNEMPLOYMENT INS - 210 372 372 -13625-3615 UNIFORMS -
-
-
- 120
Maintenance & Operations
13625-3625 SPECIAL DEPT EXPENSE - 381
-
- 225
13625-4010 COMMUNICATIONS 846 500 1,000 1,000 23913625-5031 LEGAL EXPENSES -
-
-
-
-
Contract Services
13625-5005 PROFESSIONAL SERVICES 8,118 6,913 25,000 25,000 4,41913625-5010 ACCOUNTING AND AUDITING 11,000 5,500 10,000 10,000 - 13625-5030 CITY ATIORNEY RETAINER 87 93
-
-
-
HOSPITAL FUND
14130 HOSPITAL ADMINISTRATION 1,418,205 1,343,905 2,678,000 2,678,000 990,636 Contract Services
14130-5001 PASS THRU TAX 920,225 770,345 675,000 675,000 198,56514130-5002 MEASURE H PASS THRU 496,448 571,145 2,000,000 2,000,000 792,04914130-5030 CITY ATtORNEY RETAINER 1,127 1,767 2,000 2,000 -14130-5520 BANK AND CC FEES 405 648 1,000 1,000 22 8 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 P FY25 FY23 FY24 FY25 Proposed FY25 Thru Actual Estimate Budget Revisions DEC31
HOUSING AUTHORITY
15325 ADMINISTRATION - - 750,000 750,000 415,605
Maintenance & Operations
15325-5700 MAINTENANCE OF PREMISES - - - - - Capital Outlay 15325-6547 CAPITAL IMPROVEMENTS - - 750,000 750,000 415,605 15425 ADMINISTRATION 79,374 136,321 83,117 83,117 72,716 Salaries & Benefits
15425-3010 SALARIES REGULAR 45,136 44,563 29,236 29,236 23,81915425-3040 FICA RETIREMENT 5,133 6,183 4,637 4,637 2,59715425-3041 CALPERS UNFUNDED LIAB PMT 10,377 9,741 3,253 3,163 3,148 15425-3045 HEALTH/LIFE INSURANCE 3,290 2,985 3,417 3,417 1,94015425-3050 WORKERS COMP 2,325 2,691 1,933 2,023 2,02315425-3OS1UNEMPLOYMENTINS - 52 141 141 - Maintenance & Operations 15425-3625 SPECIAL DEPT EXPENSE - 49 - - 2415425-3626 RENTAL REHAB ASSISTANCE - - - - - 15425-4010 COMMUNICATIONS 211 149 500 500 75 15425-4505 UTILITIES-GENERAL - - - - 15425-4515 UTILITIES-ELECTRICITY - - - - - Contract Services 15425-5005 PROFESSIONAL SERVICES 7,959 8,853 25,000 25,000 8,94415425-5030 CITY ATTORNEY RETAINER 4,943 10,867 15,000 15,000 353 Capital Outlay
15425-6547 CAPITAL IMPROVEMENTS - 50,187 - - 29,794
LOCAl. TRANSPORTATION
12230 LOCAl. TRANSPORTATION ADM 1,726,249 1,405,504 1,500,277 1,500,277 340,115 Maintenance & Operations
12230-3625 SPECIAL DEPT EXPENSE - - - - - 12230-5099 TRANSIT AND OAR 849,868 817,715 700,277 700,277 - Contract Services 12230-5107 COMMUTER SUBSIDY PROGRAM 872,587 581,583 800,000 800,000 340,115 Transfers
12230-6920 TRSFRS OUT- AVALON TRANSIT 3,794 6,206 - - -9 of 25 Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC31
SPECIAL REVENUE FUNDS
11550 STREET ADMINISTRATION 74,053 81,116 945,000 945,000 33,937 Maintenance & Operations
11550-3550 STREET CLEANING SUPPLIES - - - - - Contract Services11550-5005 PROFESSIONAL SERVICES - - - - - 11550-5172 STREET MAINTENANCE 8,223 9,660 20,000 20,000 10,19911550-5173 STREET SWEEPER CONTR. 65,830 62,201 75,000 75,000 23,738 Capital Outlay
11550-6547 CAPITAL IMPROVEMENTS - 9,255 - - - 11550-6746 CAP CITY WIDE POTHOLE RPR - - 850,000 850,000 - Transfers11550-6920 TRSFRS OUT-CITY INFRASTR - - - - - 11645 TRAFFIC SAFETY ADMIN 288,792 293,270 312,861 332,061 172,858 Salaries & Benefits
11645-3010 SALARIES REGULAR 207,840 151,404 156,755 171,755 75,82811645-3030 OVERTIME REGULAR 1,236 3,807 4,200 6,400 4,78111645-3040 FICA RETIREMENT 12,700 26,368 27,516 27,516 12,44311645-3041 CALPERS UNFUNDED LIAB PMT 10,130 14,651 26,343 25,849 25,49111645-3045 HEALTH/LIFE INSURANCE 17,748 29,016 33,063 33,063 15,31611645-3050 WORKERS COMP 7,251 11,190 10,641 11,135 12,98811645-3051 UNEMPLOYMENT INS - 410 1,953 1,953 - 11645-3615 UNIFORMS 131 1,864 2,390 2,390 2,441 Maintenance & Operations
11645-3545 TRAFFIC SAFETY SUPPLIES 4,715 6,355 7,000 7,000 3,85011645-3625 SPECIAL DEPT EXPENSE 622 7,777 8,000 8,000 1,975 11645-4010 COMMUNICATIONS 208 351 1,000 1,000 17511645-5S1OTRAININGANDTRAVEL - 2,954 2,000 2,000 62311645-5660 ANIMAL CONTROL 150 1,283 2,000 4,000 3,20011645-5661 HUMANE SOCIETY DONATION 10,000 10,000 10,000 10,000 - Contract Services
11645-5063 HEARING OFFICER SRVCS 16,061 25,839 20,000 20,000 13,74711645-5105 CONTRACTUAL SERVICE - - - - - 11930 COM DEVELOPMENT ADMIN 30,861 213,785 - - 193 Contract Services
11930-5180 SENIOR MEALS PROGRAM 30,861 - - - - Capital Outlay11930-6547 CAPITAL IMPROVEMENTS - - - - - 11930-6687 BUILDING IMPROVEMENTS - 213,785 - - 193 10 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC 31
10350 HARBOR SUPPORT SERVICES 2,055,347 2,188,913 2,567,900 2,518,855 1,191,819 Salaries & Benefits
10350-3010 SALARIES REGULAR 196,654 209,835 288,117 288,117 103,30410350-3012 SALARIES PART TIME 4,034 - 16,100 16,100 2,699 10350-3030 OVERTIME REGULAR 149 442 8,600 8,600 171
10350-3040 FICA RETIREMENT 31,661 34,032 50,343 50,343 19,38110350-3041 CALPERS UNFUNDED LIAB PMT 12,797 12,367 34,516 33,399 33,39910350-3045 HEALTH/LIFE INSURANCE 53,782 65,817 100,680 100,680 38,71410350-3050 WORKERS COMP 12,592 20,849 20,683 22,755 22,75510350-3051 UNEMPLOYMENT INS - 1,045 4,977 4,977 - 10350-3070 OTHER PERSONNEL SRVCS - - - 103S0-3615 UNIFORMS 5,448 5,477 5,885 5,885 5,885 Maintenance & Operations
10350-3545 SAFETY SUPPLIES 181 150 1,000 1,000 - 10350-3575 TRASH BAGS 19,331 13,642 15,000 15,000 66 10350-3625 SPECIAL DEPT EXPENSE 129 4,266 4,000 4,000 66410350-4010 COMMUNICATIONS 1,644 3,123 3,500 3,500 1,19210350-4637 RENT-CASINO DOCK RESTRMS 14,366 14,110 15,000 15,000 7,23610350-5510 TRAINING AND TRA 55 696 1,000 1,000 - 10350-5721 EMERGENCY MAINT -COVID - - - - - Contract Services10350-5017 PRO SRVCS-FALCONER - 27,000 30,000 30,000 - 10350-5012 WATERFRONT TRASH CONTRACT 182,500 193,125 225,000 225,000 113,68610350-5060 COUNTY BEACHES CONTRACT 925,109 967,130 1,100,000 1,050,000 499,29110350-5155 BEACH MAINTENANCE 9,936 9,134 10,000 10,000 - 10350-5157 PRESSURE WASHING SRVCS - - - - - 10350-5160 RESTROOM MAINTENANCE 71,001 70,369 75,000 75,000 37,80910350-5161 SHOWER FACILITY CONTRACT 224,590 224,590 225,000 225,000 112,40310350-5502 MISCELLANEOUS EX - - 2,000 2,000 1,667 Internal Services
10350-3046 INSURANCE OVERHEAD ALLOC 87,538 85,130 82,312 82,312 77,44110350-3047 ADMIN OVERHEAD ALLOC 201,850 226,584 249,187 249,187 114,057 HARBOR
11 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 10370 HARBOR ADM/OPERATIONS
Salaries & Benefits
FY25
FY23 FY24 FY25 Proposed - Actual Estimate Budget Revisions 859,222 919,400 1,034,360 1,033,405 652,863
FY25 Thru
DEC31
10370-3010 SALARIES REGULAR 327,015 359,776 365,051 365,051 233,73310370-3030 OVERTIME REGULAR 1,813 1,193 5,500 5,500 62010370-3040 RCA RETIREMENT 70,642 79,409 76,926 76,926 37,241 10370-3041 CALPERS UNFUNDED LIAB PMT 92,708 94,887 92,676 90,587 89,67710370-3045 HEALTH/LIFE INSURANCE 41,692 56,313 56,919 56,919 28,27210370-3050 WORKERS COMP 17,511 20,386 24,501 25,635 25,63510370-3051 UNEMPLOYMENT INS - 602 2,697 2,697 - 10370-3065 EMPLOYEE BENEFITS - - - - - 10370-3066 HEALTH REIMBURSEMENT - - - - - 10370-3615 UNIFORMS 2,992 3,145 3,550 3,550 3,456 Maintenance & Operations
10370-3625 SPECIAL DEPT EXPENSE 10,342 4,957 6,500 6,500 1,537 10370-4005 OFFICE SUPPLIES 6,553 7,597 7,500 7,500 2,74410370-4010 COMMUNICATIONS 4,052 18,279 4,250 4,250 1,336 10370-4015 ADVERTISING 1,019 1,566 3,250 3,250 53510370-4600 RENT-GENERAL 9,777 10,721 18,000 18,000 9,63410370-4601 RENT-SCI CO. CAR PARKING 1,824 1,938 2,500 2,500 66810370-5501 INSURANCE 100,515 88,133 110,000 110,000 101,882 10370-5505 MEMBERSHIP AND DUES 846 - 1,000 1,000 - 10370-5510 TRAINING AND TRAVEL 11,625 2,965 7,000 7,000 29210370-5721 EMERGENCY MAINT -COVID - - - - - Contract Services10370-5011 MO. MAINT HBR COMPUTERS 34,973 38,286 46,500 46,500 10,15610370-5030 CITY ATTORNEY RETAINER 6,547 3,414 25,000 25,000 4,299 Internal Services
10370-3046 INSURANCE OVERHEAD ALLOC 35,015 34,052 43,524 43,524 40,94910370-3047 ADMIN OVERHEAD ALLOC 81,762 91,781 131,515 131,515 60,197 12 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC 31
10371 HARBOR OPERATIONS 3,576,331 3,864,507 4,162,029 4,214,029 2,318,232 Salaries & Benefits
10371-3010 SALARIES REGULAR 1,049,848 1,080,452 1,098,426 1,098,426 531,16810371-3012 SALARIES PART TIME 240,237 312,240 334,181 334,181 191,76910371-3030 OVERTIME REGULAR 20,114 26,489 35,500 35,500 10,39910371-3040 FICA RETIREMENT 239,635 266,031 272,537 272,537 122,39210371-3041 CALPERS UNFUNDED [lAB PMT 186,304 174,291 213,607 206,695 206,69510371-3045 HEALTH/LIFE INSURANCE 189,620 200,368 229,500 223,303 106,75210371-3050 WORKERS COMP 92,769 82,445 96,358 109,467 109,467 10371-3051 UNEMPLOYMENT INS - 5,715 21,390 21,390 - 10371-3615 UNIFORMS 12,939 22,884 29,300 29,300 13,28810371-3615A HBR SUNGLASSES/MOU 2,383 - - - 181 Maintenance & Operations
10371-3616 FOUL WEATHER GEAR 3,392 5,202 5,000 5,000 - 10371-3617 PERSONAL PROTECT EQUIP 1,663 1,895 5,000 7,000 1,13910371-3620 SMALL TOOLS 8,955 6,125 7,000 7,000 61510371-3625 SPECIAL DEPT EXPENSE 14,593 11,544 18,500 18,500 4,34210371-4010 COMMUNICATIONS 7,886 9,915 12,000 12,000 4,330 10371-4505 UTILITIES-GENERAL 6,186 11,052 10,000 25,000 14,09310371-4515 UTILITIES-ELECTRICITY 46,982 44,824 50,000 85,000 36,77110371-4520 UTILITIES-SALT WATER 95,000 100,000 105,000 105,000 52,50010371-4525 UTILITIES-SEWER 210,000 225,000 235,000 235,000 117,50010371-4530 UTILITIES - GAS WTR DUMP 91,918 75,287 95,000 95,000 51,88810371-4641 RENT - FIBER LINE - IT 13,064 13,173 15,000 15,000 6,59710371-5510 TRAINING AND TRAVEL 8,544 18,962 25,000 25,000 8,05910371-5520 BANK AND CC FEES 65,774 77,830 80,000 80,000 67,309 10371-5600 GAS, DIESEL AND OIL 42,960 49,329 55,000 55,000 22,512 10371-5700 MAINTENANCE OF PREMISES 4,946 - - - 2,204
Contract Services
10371-5103 SHOREBOAT SERVICES 289,000 289,000 289,000 289,000 144,50010371-5105 CONTRACTUAL SERVICES-G 2,180 9,100 7,500 7,500 1,100 Internal Services
10371-3046 INSURANCE OVERHEAD ALLOC 168,625 163,987 189,860 189,860 178,62610371-3047 ADMIN OVERHEAD ALLOC 347,489 390,069 515,679 515,679 236,03510371-5605 VEHICLE OVERHEAD ALLOC 113,326 191,298 111,691 111,691 76,001 13 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC31
10470 HARBOR SUPPORT SERVICES 676,494 721,463 11,720,319 11,800,319 833,572 Salaries & Benefits
10470-3010 SALARIES REGULAR 44,267 49,934 44,197 64,197 38,52610470-3030 OVERTIME REGULAR - 1,953 - - 25510470-3040 FICA RETIREMENT 4,152 8,280 9,064 9,064 4,90310470-3041 CALPERS UNFUNDED LIAB PMT 18,006 11,447 10,306 10,171 9,97310470-3045 HEALTH/LIFE INSURANCE 2,278 2,352 6,128 6,128 1,417 10470-3050 WORKERS COMP 3,090 2,502 2,922 3,057 3,05710470-3051 UNEMPLOYMENT INS - 57 233 233 - 10470-3615 UNIFORMS - 198 - - - Maintenance & Operations10470-3010 COMMUNICATIONS 161 253 500 500 16410470-3625 SPECIAL DEPT EXPENSE - 24 500 500 - 10470-5610 VEHICLE/EQUIP MT AND RPR 60,898 68,818 60,000 60,000 6,06310470-5700 MAINTENANCE OF PREMISES 53,809 75,736 50,000 75,000 41,162 10470-5701 STORM DAMAGE - 62,114 50,000 50,000 34,850
10470-5702 FLOAT STORAGE 13,392 18,506 15,000 25,000 11,266 10470-5703 MOORING MAINTENANCE 45,103 66,518 40,000 65,000 30,73310470-5705 FLOAT MAINTENANCE 33,717 50,719 50,000 50,000 11,055 Contract Services
10470-5121 PESTICIDE SPRAYING-HBR 4,052 4,064 6,000 6,000 1,545 10470-5140 PLUMBING AND ELECTRICAL 1,146 12,627 10,000 10,000 14,83110470-5165 SHOWER/RESTROOM MAINT - - - - - Internal Services10470-3047 ADMIN OVERHEAD ALLOC 209,S1S 235,189 259,570 259,570 118,810 10470-3046 INSURANCE OVERHEAD ALLOC - - - - - 10470-5605 VEHICLE OVERHEAD ALLOC 67,995 38,260 37,230 37,230 25,334 Capital Outlay
10470-6502 R AND M - MOORINGS (0) - - - - 10470-6504 R AND M - FLOATS/WHARFS (220) (39,953) 220,000 220,000 - 10470-6547 CAPITAL IMPROVEMENTS 92,204 46,224 2,121,580 2,121,580 264,876 10470-6585 R AND M FLOAT ANCHOR CHNS 6,413 - 20,000 20,000 - 10470-6589 SECURITY CAMERAS - - 40,000 40,000 1,59410470-6647 CAP M&E-PIER HOI 688 3,410 - - 18,73010470-6648 CAP M&E-PUMPOUT - 389 - - - 10470-6666 ENVIRONMENTAL STUDY 1,080 - - - - 10470-6667 HARBOR MOLE PHASE II - - 8,306,423 8,306,423 73,16710470-6671 HARBOR MOLE IMPROVEMENT - - - - - 10470-6671A HARBOR MOLE OTHER - - - - - 10470-6679 CAP M&E-FD PIER & RESTRM - - 150,000 150,000 - 10470-6689 R&M PATROL BOATS 14,746 1,842 20,000 20,000 9,513 10470-6781 VEHICLE REPLACEM - - 190,666 190,666 111,748 14 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC31
11470 FUEL DOCK OPERATIONS 13,559 16,903 75,000 158,000 62,457 Salaries & Benefits
11470-3010 SALARIES REGULAR - - - - - 11470-3016 SALARIES FUEL DOCK PT - - - - - 11470-3030 OVERTIME REGULAR - - - - 11470-3040 FICA RETIREMENT - - - - 11470-3041 CALPERS UNFUNDED LIAB PMT - - - - - 11470-3045 HEALTH/LIFE INSURANCE - - - - - 11470-3050 WORKERS COMP - - - - - 11470-3051 UNEMPLOYMENT INS - - - - - 11470-3615 UNIFORMS - - - - Maintenance & Operations 11470-3625 SPECIAL DEPT EXPENSE 3,345 - - - -11470-3628 MERCHANDISE - - - - - 11470-4005 OFFICE SUPPLIES - - - - - 11470-4010 COMMUNICATIONS - - - - - 11470-4505 UTILITIES-GENERAL 1,295 - - - - 11470-4515 UTILITIES-ELECTRICI 2,803 - - - - 11470-4635 RENT-CASINO FUEL TANKS - - - 83,000 41,334 11470-4641 RENT - FIBER LINE - IT - - - - -11470-SSO1 INSURANCE - - - - 11470-5510 TRAINING AND TRAVEL - - - - - 11470-5512 FUEL DOCK TESTING - 12,868 15,000 15,000 14,37911470-5513 FUEL DOCK PERMITS 4,976 4,035 10,000 10,000 - 11470-5520 BANK AND CC FEES - - - - - 11470-5600 GAS, DIESEL AND OIL - - - - - 11470-5700 MAINTENANCE OF PREMISES 1,140 - - - - 11470-5701 STORM DAMAGE - - - - - Contract Services11470-S005 PROFESSIONAL SERVICES - - - - - Internal Services 11470-3046 INSURANCE OVERHEAD ALLOC - - - - - 11470-3O47ADMINOVERHEADALLOC - - - - - Capital Outlay11470-6503 FUEL DOCK PUMP MAINT - - - - - 11470-6504 RAND M - FLOATS/WHARFS - - - - - 11470-6509 CAP IMP FUEL DOCK - - - - - 11470-6509A FLOAT PURCHASE FUEL DOCK - - - - - 11470-6547 CAPITAL IMPROVEMENTS - - 50,000 50,000 6,744 15 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 SEWER
10725-3046 INSURANCE OVERHEAD ALLOC10725-3047 ADMIN OVERHEAD ALLOC 110,574 107,532 99,601
212,070 238,057 242,265
10725 SEWER SERVICE
Salaries & Benefits
FY25
FY24 FY25 Proposed
Estimate Budget Revisions
FY25 Thru
DEC31
2,183,881 2,322,334 2,524,049 2,584,228 1,159,500
10725-3010 SALARIES REGULAR 36,688 67,363 58,160 58,160 53,50110725-3040 FICA RETIREMENT 2,063 7,682 9,026 9,026 5,98910725-3041 CALPERS UNFUNDED LIAB PMT 12,076 11,917 122 122 11810725-3045 HEALTH/LIFE INSURANCE 22 176 8,579 8,579 45610725-3050 WORKERS COMP 2,843 3,542 3,845 4,024 4,02410725-3051 UNEMPLOYMENT INS - 73 326 326 - 10725-3615 UNIFORMS - - - - - Maintenance & Operations 10725-3625SPECIALDEPTEXPENSE - 349 775 775 1810725-4010 COMMUNICATIONS 405 461 3,500 3,500 30210725-4505 UTILITIES-GENERAL 3,067 2,879 6,000 6,000 2,21910725-4515 UTILITIES-ELECTRICITY 90,032 139,436 140,000 140,000 15,73510725-4530 UTILITIES - GAS WTR DUMP 197,491 72,015 170,000 170,000 45,30910725-5502 MISCELLANEOUS FEES 31,104 23,207 35,000 35,000 17,07010725-S701 STORM DAMAGE - - 10,500 i0,s00 - 10725-5720 EMERGENCY MAINTENANCE 108,331 88,114 115,000 115,000 72,81310750-4010 COMMUNICATIONS - 660 - - 410 Contract Services
10725-5005 PROFESSIONAL SERVICES 1,177 13,264 50,000 50,000 - 10725-S007 PRO SRVCS-C AND D ORDER 29,565 42,774 70,000 70,000 - 10725-5009 PROF SRVCS-H2S CONTROL 164,396 218,693 180,000 240,000 150,29310725-S017 PRO SRVCS-FALCONER 51,400 52,800 60,000 60,000 28,20010725-5030 CITY ATTORNEY RETAINER 405 1,395 13,000 13,000 28910725-5109 ENVIRON STRATEGY CNSLTNTS 1,130,171 1,229,944 1,200,000 1,200,000 558,16010725-5 124 ENVIRON - MAINTANANCE - - - - - 10725-6030 RETIREMENT OF PRINCIPAL - - 48,350 48,350 - Internal Services 99,601 93,707
242,265 110,889
16 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 Maintenance & Operations
11025-5700 MAINTENANCE OF PREMISES
I FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC31
10750 SEWER SERVICE PUB WORKS 271,413 291,564 356,355 356,176 196,297 Salaries & Benefits
10750-3010 SALARIES REGULAR 140,993 124,652 144,982 144,982 61,394 10750-3030 OVERTIME REGULAR 959 3,471 2,000 3,500 3,46510750-3040 FICA RETIREMENT 22,838 21,720 25,820 25,820 10,40710750-3041 CALPERS UNFUNDED LIAB PMT 20,381 15,848 29,029 29,029 28,09010750-3045 HEALTH/LIFE INSURANCE 34,949 31,477 38,868 36,421 17,37410750-3050 WORKERS COMP 8,039 10,670 9,717 10,485 10,48510750-3051 UNEMPLOYMENT INS - 330 1,629 1,629 - 10750-3615 UNIFORMS 1,700 1,825 2,025 2,025 2,025 Maintenance & Operations
10750-3625 SPECIAL DEPT EXPENSE 841 1,250 1,175 1,175 217 10750-5502 MISCELLANEOUS FEES - 12,348 - - (179)
Contract Services
10725-6045 INTEREST EXPENSE 4,449 3,013 7,150 7,150 - 10750-5184 SWRCB-ANNUAL AUDIT SSMP - 3,746 19,500 19,500 12,350 Internal Services
10750-3046 INSURANCE OVERHEAD ALLOC - - - - - 10750-3047 ADMIN OVERHEAD ALLOC - - - - - 10750-5605 VEHICLE OVERHEAD ALLOC 36,264 61,215 74,461 74,461 50,667 10825 SEWER MAINT & DEVELPMENT 44,580 595 50,000 50,000 36,979 Capital Outlay
10825-6521 SEWER CAPITAL IMPROVEMENT 44,580 595 50,000 50,000 36,979 10825-6675 SCADA CAPITAL IMPROVEMENT - - - - - 10850 SEWER CAP IMPROV P1W 15,788 48,026 914,838 914,838 245,254 Capital Outlay
10850-6521 SEWER CAPITAL IMPROVEMENT 15,788 48,026 914,838 914,838 245,254 11025 WWTP MAINT & DEVELOPMENT 12,405 52,459 45,000 45,000 9,642 12,405 52,459 45,000 45,000 9,642
17 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 11225-5005 PROFESSIONAL SERVICES11225-5030 CITY ATTORNEY RETAINER11225-5031 LEGAL EXPENSES11225-5109 ENVIRON STRATEGY CNSLTNTS11225-5124 ENVIRON - MAINTANANCE11225-6030 RETIREMENT OF PRINCIPAL11225-6045 INTEREST EXPENSE Internal Services
11225-3046 INSURANCE OVERHEAD ALLOC11225-3047 ADMIN OVERHEAD ALLOC 11250 SALT WATER ADMIN P/W
Salaries & Benefits
FY23
Actual
FY24 FY25
Estimate Budget
FY25
Proposed
Revisions
11250-3625 SPECIAL DEPT EXPENSE11250-4010 COMMUNICATIONS 830 1,550920 2,500
1,550 170
2,500 488
Internal Services
11250-3047 ADMIN OVERHEAD ALLOC11250-3046 INSURANCE OVERHEAD ALLOC 11325 SALT WATER MAINT & DEV
Maintenance & Operations
11325-5700 MAINTENANCE OF PREMISES
Capital Outlay
11325-6552 SALTWATER CAP IMPROVEMENT
20,175
1,449
18,727
11,156 452,500 452,500
893 2,500 2,500
10,263 450,000 450,000
1,018
1,018
I
SALTWATER
11225 SALT WATER ADMINISTRATION
Salaries & Benefits
11225-3010 SALARIES REGULAR11225-3040 FICA RETIREMENT11225-3041 CALPERS UNFUNDED LIAB PMT11225-3045 HEALTH/LIFE INSURANCE11225-3050 WORKERS COMP11225-3051 UNEMPLOYMENT INS Maintenance & Operations
11225-3625 SPECIAL DEPT EXPENSE11225-4010 COMMUNICATIONS11225-5720 EMERGENCY MAINTENANCE Contract Services
FY25 Thru
DEC31
480,647 529,567 497,123 497,250 234,228
24,818 24,329 41,543 41,543 19,885
1,474 3,667 6,447 6,447 2,827
8,625 8,512 87 87 84
16 334 6,128 6,128 452
1,933 2,352 2,747 2,874 2,874 - 53 233 233 - -
- 625 625 - 254 130 480 480 87
3,938 4,048 6,000 6,000 - 87 - - - - 3 10,662 327,985 310,000 310,000 148,842 - 15,970 15,970 15,970 - - 3,090 3,090 3,090 - 36,858 35,844 24,171 24,171 22,741 91,982 103,254 79,601 79,601 36,435
138,924 181,069 197,079 196,952 117,287
11250-3010 SALARIES REGULAR11250-3030 OVERTIME REGULAR11250-3040 FICA RETIREMENT11250-3041 CALPERS UNFUNDED LIAB PMT11250-3045 HEALTH/LIFE INSURANCE 11250-3050 WORKERS COMP11250-3051 UNEMPLOYMENT INS11250-3615 UNIFORMS Maintenance & Operations
112,889
5,544
17,47510,512
23,538
7,863
231
1,265
85,747
377
13,83611,54921,297
4,479
900
739
111,683
1,600
19,56219,342
30,480
7,490
1,2571,615
111,683
1,600
19,562
19,342
29,800
8,043
1,2571,615
63,240
3,050
8,981
18,71612,983
8,043
1,615
18 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY24 FY25 Proposed
Estimate Budget Revisions - - 91,000
260,571 250,466 316,000
III
SOLID WASTE
13125 SOLID WASTE ADMIN
Salaries & Benefits
FY23
Actual
FY25 Thru
DEC 31
2,137,705 2,687,782 2,968,569 2,968,569 1,199,249
13125-3010 SALARIES REGULAR 38,476 13,948 15,800 15,800 7,63513125-3O300VERTIMEREGULAR 463 418 200 200 55513125-3040 FICA RETIREMENT 6,146 2,747 2,826 2,826 1,289 13125-3041 CALPERS UNFUNDED LIAB PMT 5,018 1,832 3,286 3,236 3,18013125-3045 HEALTH/LIFE INSURANCE 9,016 3,315 3,486 3,486 1,73913125-3050 WORKERS COMP 2,833 1,145 1,057 1,107 1,15113125-3051 UNEMPLOYMENT INS - 56 186 186 - 13125-3615 UNIFORMS - - 280 280 60 Maintenance & Operations
13125-3625 SPECIAL DEPT EXPENSE - 107 - - 2413125-4010 COMMUNICATIONS - 250 25013125-4600 RENT-GENERAL 13,961 13,686 15,750 15,750 6,960 Contract Services
13125-5005 PROFESSIONAL SERVICES - 4,550 - - 4,38513125-5030 CITY ATTORNEY RETAINER 8,862 29,893 10,000 10,000 6,05013125-5046 HOUSEHOLD HAZARDOUS WASTE 85,251 100,376 132,500 132,500 9,01813125-5047 HAZARDOUS WASTE DISPOSAL 1,414 21,457 10,000 10,000 11,88013125-5064 SANITATION CONTRACT 1,753,319 2,258,389 2,200,000 2,200,000 907,499 13125-S185 SWRCB ANNUAL PERMIT 8,335 14,047 9,500 9,500 - Internal Services 13125-3046 INSURANCE OVERHEAD ALLOC 58,973 57,351 44,165 44,165 41,55213125-3047 ADMIN OVERHEAD ALLOC 145,639 163,485 141,898 141,898 64,949 Capital Outlay
13125-6547 CAPITAL IMPROVEMENTS
13225 SOLID WASTE INFRASTRUCTIJR
Maintenance & Operations
13225-3578 BROWN BAGS
Capital Outlay
13225-6547 CAPITAL IMPROVEMENTS13225-6569 LANDFILL CLOSURE FEE - 979 377,385 377,385 131,324 260,571 250,660 417,500 417,500 23,772 194 10,500 7,194 16,579 10,500 91,000 316,000 19 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC 31
AVALON TRANSIT
12325 AVALON TRANSIT 237,274 317,272 301,287 301,287 419,981 Salaries & Benefits
12325-3010 SALARIES REGULAR 18,444 23,033 21,908 21,908 10,64212325-3040 FICA RETIREMENT 2,164 4,169 4,288 4,288 1,89612325-3041 CALPERS UNFUNDED LIAB PMT 5,439 4,401 8,020 7,953 7,760 12325-3045 HEALTH/LIFE INSURANCE 2,197 4,195 6,128 6,128 2,25912325-3050 WORKERS COMP 1,219 1,223 1,457 1,524 1,524 12325-3051 UNEMPLOYMENT INS - 53 233 233 - Maintenance & Operations12325-3625 SPECIAL DEPT EXPENSE 50 1,173 - - 13412325-4005 OFFICE SUPPLIES - - - - - 12325-4010 COMMUNICATIONS 132 195 500 500 87 12325-4015 ADVERTISING - 4,167 2,000 2,000 - 12325-4505 UTILITIES-GENERAL - - - 12325-4515 UTILITIES-ELECTRICITY - - - - - 12325-5095 CHARTER SVCS - - - - - 12325-5501 INSURANCE 30,S54 200 35,000 35,000 34,775 12325-5510 TRAINING AND TRAVEL 7,402 7,614 8,000 8,000 45212325-5610 VEHICLE/EQUIP MT AND RPR 5,142 1,190 5,000 5,000 10,147 Contract Services
12325-5105 CONTRACTUAL SERVICES-GEN 34,554 30,419 25,000 25,000 285,367 Internal Services
12325-3046 INSURANCE OVERHEAD ALLOC - - - - - 12325-3047 ADMIN OVERHEAD ALLOC 107,313 120,462 86,523 86,523 39,603 12325-5605 VEHICLE OVERHEAD ALLOC 22,665 114,779 37,230 37,230 25,334 Capital Outlay
12325-6781 VEHICLE REPLACEMENT - - 60,000 60,000 -20 of 25 Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 C FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC31
INTERNAL SERVICES
10110 GENL ADMIN CITY COUNCIL 35,053 32,082 41,315 41,366 16,614 Salaries & Benefits
10110-3010 SALARIES REGULAR 18,049 18,248 18,000 18,000 8,75310110-3040 FICA RETIREMENT 1,380 1,386 1,375 1,375 66910110-3045 HEALTH/LIFE INSU 804 170 750 750 (91)10110-3050 WORKERS COMP 964 1,039 1,190 1,241 1,241 Maintenance & Operations
10110-5505 MEMBERSHIP AND DUES 1,800 - - - - 10110-5510 TRAINING AND TRAVEL 12,056 11,238 20,000 20,000 6,042 10115 GEN ADM CITY TREASURER 3,673 3,698 8,263 8,274 1,683 Salaries & Benefits
10115-3010 SALARIES REGULAR 3,233 3,242 3,600 3,600 1,56810115-3040 RCA RETIREMENT 247 248 275 275 12010115-3045 HEALTH/LIFE INSU - - 150 150 - 10115-3050 WORKERS COMP 193 208 238 249 249 Maintenance & Operations
10115-5505 MEMBERSHIP AND DUES - - - - - 10115-5510 TRAINING AND TRAVEL - - 4,000 4,000 (254) 10120 GEN ADM CITY ATTORNEY 77,125 93,119 173,000 173,000 43,687 Maintenance & Operations
10120-5510 TRAINING AND TRAVEL 268 301 3,000 3,000 - Contract Services 10120-5030 CITY ATTORNEY RETAINER 76,858 92,818 170,000 170,000 43,687 21 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC31
10125 GEN ADM ADMINISTRATION 1,104,012 1,171,947 1,556,685 1,556,476 772,848 Salaries & Benefits
10125-3010 SALARIES REGULAR 685,218 704,342 939,347 939,347 387,863 10125-3030 OVERTIME REGULAR 607 2,351 2,875 2,875 2,26610125-3040 FICA RETIREMENT 103,010 116,325 158,776 158,776 59,257 10125-3041 CALPERS UNFUNDED [lAB PMT 122,429 133,883 156,796 153,698 151,72210125-3045 HEALTH/LIFE INSURANCE 73,139 87,413 139,599 128,896 49,959 10125-3050 WORKERS COMP 40,349 45,775 62,297 75,789 75,789 10125-3051 UNEMPLOYMENT INS - 1,511 7,395 7,395 - 10125-3615 UNIFORMS - 6,600 1,875 1,975 1,945 Maintenance & Operations
10125-3515 ELECTION EXPENSE 14,114 16,896 20,000 20,000 - 10125-3625 SPECIAL DEPT EXPENSE 8,775 12,598 13,375 10,730 3,68210125-4005 OFFICE SUPPLIES 3,629 380 - - - 10125-4010 COMMUNICATIONS 3,054 3,994 5,500 5,500 2,43410125-4610 RENT-COPIER - - - - - 10125-5505 MEMBERSHIP AND DUES 22,371 20,730 28,000 30,645 30,64510125-5510 TRAINING AND TRAVEL 4,455 11,013 10,500 10,500 5,02510125-5511 TRAVEL -CITY MANAGER 1,498 2,597 3,000 3,000 80710125-5600 GAS, DIESEL AND OIL 5,716 4,992 7,000 7,000 1,454 Contract Services
10125-5005 PROFESSIONAL SERVICES 15,650 545 350 350 - 10130 GEN ADM FINANCE 585,555 671,244 743,176 743,322 390,665 Salaries & Benefits
10130-3010 SALARIES REGULAR 306,773 365,044 385,208 385,208 188,22010130-3030 OVERTIME REGULAR 486 1,732 2,400 2,400 20710130-3040 FICA RETIREMENT 48,292 50,948 63,427 63,427 30,49210130-3041 CALPERS UNFUNDED LIAB PMT 32,897 26,866 32,197 31,155 31,15510130-3045 HEALTH/LIFE INSURANCE 56,588 60,556 71,838 71,838 33,66410130-3050 WORKERS COMP 20,439 22,722 25,628 26,816 26,81610130-3051 UNEMPLOYMENT INS 176 963 4,278 4,278 - 10130-3615 UNIFORMS - - 1,200 1,200 1,140 Maintenance & Operations
10130-3625 SPECIAL DEPT EXPENSE 3,973 16,004 6,000 6,000 54810130-4010 COMMUNICATIONS 941 2,679 4,000 4,000 1,330 10130-5006 MONTHLY SOFTWARE CHRGS 48,307 47,454 55,000 55,000 32,842 10130-5505 MEMBERSHIP AND DUES 125 285 1,000 1,000 - 10130-5510 TRAINING AND TRAVEL 4,280 5,711 10,000 10,000 800 Contract Services
10130-5005 PROFESSIONAL SERVICES 62,279 70,281 81,000 81,000 43,451 22 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC 31
10135 GEN ADM GEN GOVERNMENT 659,524 771,502 938,495 1,020,495 384,417 Salaries & Benefits
10135-3055 LAUNDRY ALLOWANCE - - - - -
10135-3065 EMPLOYEE BENEFITS SPECIAL 200,687 192,271 225,000 225,000 98,489 Maintenance & Operations
10135-3525 YLW JACKET/PEST CTRL - 10135-3625 SPECIAL DEPT EXPENSE 26,422 35,954 30,000 30,000 17,07010135-4005 OFFICE SUPPLIES 23,270 37,289 35,000 35,000 10,12810135-4010 COMMUNICATIONS 27,837 22,492 34,720 34,720 9,78610135-4015 ADVERTISING 11,363 9,753 14,000 14,000 5,17910135-4505 UTILITIES-GENERAL 6,104 10,242 10,000 15,000 7,62910135-4515 GOVERNMENT UTILITIES-ELECTRI 24,676 46,122 45,000 60,000 31,05210135-4516 UTILITIES - INTERNET 11,017 13,436 15,000 15,000 7,58810135-4610 RENT-COPIER 5,346 8,595 10,000 10,000 1,64610135-4615 RENT-MAIL MACHINE 7,794 3,096 9,000 9,000 1,38910135-5510 TRAINING AND TRAVEL 1,414 - - - 1,02410135-5520 BANK AND CC FEES (1,243) 11,246 20,000 20,000 4,45010135-5700 MAINTENANCE OF PREMISES 44,032 42,182 28,000 28,000 8,07610135-5721 EMERGENCY MAINT -COVID 4,669 53 - - - Contract Services10135-5005 PROFESSIONAL SERVICES 76,467 117,556 123,000 123,000 35,46210135-5010 ACCOUNTING AND AUDITING 76,438 92,009 100,775 100,775 61,65310135-5018 PROF SRVCS-IT 71,330 66,165 90,000 90,000 10,19110135-5020 OPERATION COSTS-IT 41,900 63,042 99,000 111,000 63,537 Capital Outlay
10135-6611 M AND E COMPUTERS - - 50,000 100,000 10,069
23 of 25
Exhibit C
Fiscal Year 2024-2025 Budget
Expenditure Detail through December 31, 2024
FY25
FY23 FY24 FY25 Proposed FY25 Thru
Actual Estimate Budget Revisions DEC 31
11830 INSURANCE ADMINISTRATION 919,610 896,102 986,965 1,046,965 928,562 Salaries & Benefits
11830-3045 HEALTH/LIFE INSURANCE (4,622) (3,141) - - (1,637) Maintenance & Operations
11830-5501 INSURANCE 635,847 709,154 807,965 867,965 885,189 11830-5515 RESERVE FOR CLA 12,372 (11,686) 25,000 25,000 - 11830-5517 CLAIMS PAYABLE 9,334 57,992 10,000 10,000 -
Contract Services
11830-5030 CITY ATTORNEY RETAINER 37,640 89,988 44,000 44,000 38,117 11830-5031 LEGAL EXPENSES 229,038 53,795 100,000 100,000 6,894 11830-5186CADPTTOXSUB
-
-
-
-
-
13825 VEH MAINT/RPLCMNT ADMIN 407,911 522,862 744,605 809,605 506,671 Salaries & Benefits
13825-3010 SALARIES REGULAR 131,528 156,761 190,697 190,697 89,033 13825-3030 OVERTIME REGULAR 2,873 3,886 9,000 9,000 1,779 13825-3040 FICA RETIREMENT 20,045 24,647 30,284 30,284 12,877 13825-3041 CALPERS UNFUNDED LIAB PMT 422 - 400 400 387
13825-3045 HEALTH/LIFE INSURANCE 35,870 44,884 59,370 59,370 32,121 13825-3050 WORKERS COMP 7,148 11,457 13,204 14,204 13,985 13825-3051 UNEMPLOYMENT INS - 419 2,790 2,790 -
13825-3615 UNIFORMS 2,191 3,068 4,200 4,300 4,243
Maintenance & Operations
13825-3545 SAFETY SUPPLIES
-
- 1,000 1,000 -
13825-3620 SMALL TOOLS 4,941 7,807 5,000 5,000 3,936
13825-3625 SPECIAL DEPT EXPENSE 8,107 6,875 10,000 8,900 659 13825-4010 COMMUNICATIONS 509 1,752 3,660 3,660 1,005
1382S-4620 RENT-GARAGE FACILITY 81,561 78,312 90,000 90,000 54,705 13825-5510 TRAINING AND TRAVEL 84 399 5,000 5,000 184
13825-5610 VEHICLE/EQUIP MT AND RPR 112,631 177,211 120,000 170,000 81,660 Capital Outlay
13825-6689 R&M PATROL BOATS
-
-
-
-
-
13825-6781 VEHICLE REPLACEMENT - 5,385 200,000 215,000 210,097 24 of 25
Exhibit C
Fiscal Year 2024-2025 BudgetExpenditure Detail through December 31, 2024 FY25 - FY23 FY24 FY25 Proposed FY25 Thru - Actual Estimate Budget Revisions DEC 31
SUCCESSOR AGENCY
20025 ADMINISTRATION 932,123 877,642 2,259,000 2,259,000 347,296 Maintenance & Operations
20025-5502 MISCELLANEOUS FEES 8,895 9,345 9,000 9,000 6,22020025-6030 RETIREMENT OF PRINCIPAL - - 1,200,000 1,200,000 - 20025-6045 INTEREST EXPENSE 673,978 619,097 800,000 800,000 341,076 Contract Services
20025-5082 RDAADMIN COST ALLOW 249,250 249,200 250,000 250,000 - 20025-5083 RDA PAE REVENUE - - Capital Outlay 20025-6547 CAPITAL IMPROVEMENTS - - - - -25 of 25
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: ‘1
ORIGINATING DEP: Public Works CITY MANAGER:__________
PREPARED BY: Jackeline Cordero, Public Works Director
SUBJECT: Authorization to Provide On-Site Professionalized Services for the WVVTP Pebbly Beach Lift Station Programmable
Logic Controller
RECOMMENDED ACTION(S): Authorize PERC Water to contract See Water Inc. to provide on-site professionalized services for the WWTP Pebbly Beach Lift Station Programmable Logic Controller from Sewer Fund 108-25-6521 for an amount of not-toexceed $30,250.REPORT SUMMARY: PERC Water maintains the City’s Wastewater Treatment Plant (WWTP), and have requested to have See Water Inc. rehabilitate Pebbly Beach LiftStation’s programmable logic controller. The rehabilitation requires installation of a new additional cabinet and control panel, CP1240-A, and moving sensitive wiring andcomponents to the new control panel about 20 feet away from the sump area. The existingcabinet and control panel are extremely close to the sump area and exposed to high levels of H2S gas, which is causing abnormal deterioration of the current control circuit components. The improvements are needed to maintain operational efficiency and compliance with State regulatory permit requirements. The proposed scope of work coincides with the work The LeMasters Company is completing, which ensures seamless operations of the whole WWTP system.
PERC Water has requested to engage See Water Inc. to perform the following scope of work:
1. Remove all sensitive electronics, e.g., PLC, HMI, Modbus gateway, and all other door mounted components from the existing control cabinet and these components will be re-installed into a new control panel, CP1240-A.
2. Replace all control wires (12OVAC/24VDC), with new wires.
3. All new wires to be coated in corrosion resistant grease with ferrule connectors.
4. New stainless steel enclosure with lockable latch and dead front inner door to be installed about 20 feet away from sump area.
5. Includes Terminal Blocks to wire PLC connections, pump portal remote monitoring equipment and online service.
FISCAL IMPACTS: A cost not-to-exceed $30,250. Sufficient funds exist in FY 24-25 Sewer Fund 108-25-6521.
GOAL ALIGNMENT: Improved efficiency and reliability of plant operations.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Would delaycritical upgrades to the WWTP Pebbly Beach Lift Station control system, potentiallyeffecting plant operations and overflow, and possible lift station failure.
FOLLOW UP ACTION: Authorize PERC Water to contract See Water Inc.to perform onsite professionatized services for the WWTP Pebbly Beach Lift Station Programmable Logic Controller as requested.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
1. PERC Water Additional Services Request Form
2. Proposal from See Water Inc.
Additional Services Request Form percwater
Projoct Name Additional Services Project Number Emergency Quote Dote Sum Of Proiect Cost See Water P61.5 Cabinet Rehab 2025-04 No 2/4/25 $27,500.00 Task Description Position Position Posftion Position Position Position Extended Price Based on the on-site inspection and the information gathered on site, the See Project Operator Field Tech Field Tech Field Tech Field Tech 2 S Water team thinks the best course of action is to remove all of the sensitive Manaoer 1 Reoular 1 OT 2 Reoular OT electronics from the existing control cabinet. These components would then be installed in a new control panel CP1240—A. The ex,st,ng control panel, cpl24o, ix so close to the surnp area that it is getting exposed to h,gh lends of H2S gas which is connotently causing control circuit components to rail. The new proposed control panel, cp1240-A, 5 oteoded to be mounted at least 205 away frOm the sums area. This will allow the -42S to dissipate and no longer expose the senstive electronics to the gas.
Total Hours 0.00 0.00 0.00 0.00 0.00 0.00
Hourly Rate $261.00 $139.00 $116.00 $174.00 $116.00 $174.00 Estimated PERC Labor Cost $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Part Quantity Vendor Materials Unit Cost Unit Price Extended Price CP1240 Retrofit Work (Existing Control Panel): $13,950.00 Includes price of labor, lodging, and transportation
CP1240-A (New Control Panel) $ 11,050.00
SubTotal $25,000.00
10% Markup $2,500.00
Total $27,500.00
Sub-Contractor Cost Extended Price Ica,rcrr,atsraan;andI’a,zI.,gchar;es,re,otdj:,5 Sah,,n,w,rIbexooedroc,derns-ppex,ocaI,vr,,u,Ias, twe,nz,nfzr,,at,o,s DescriDtion of
Subcontractor: Subcontractor work:
SubTotal
10% Markup
Total Sub Contractor Cost $0.00
PROJECT TOTAL $27,500.00
Public Works Director Date
City Manager Date
S 22220 Opportunity Way, Suite 101, Riverside, CA 92518 951.4878073 (local) 888.733.9283 (toll-free) www.seewaterinc.com Dave West
Customer: PERC Water
[email protected]
Lead Time: TBD
Date: 2/04/2025Rev: Rev5
Quoted By: Conrad Beattie
Pump/Motor N/A
Information:
Based on the on-site inspection and the information gathered on site, the See Water team thinks the best course of action is to remove all of the sensitive electronics from the existing control cabinet. Thesecomponents would then be installed in a new control panel CP1240-A.
The existing control panel, CP1240 is so close to the sump area that it is getting exposed to high levels of H2S gas which is consistently causing control circuit components to fail.
The new proposed control panel, CP1240-A, is intended to be mounted at least 2Oft away from the sump area. This will allow the H2S to dissipate and no longer expose the sensitive electronics to the gas.
All new wires to be coated in corrosion resistant grease with ferrule connectors Includes Pump Portal Remote Monitoring Equipment and online service at no additional cost CP1240 Retrofit Work (Existing Control Panel)
Total Cost: $13,950.00
Labor: $12,000.00Lodging: $1200.00
Transportation: $750.00
The above estimates are based on (5) 8 hour days with our primary technician on site, each additional hour required on site to complete the below work will result in an additional $250/hr added cost A second See Water technician will be required to be on site for at least, (1) 8 hour day when wires are ran through the conduits between the control panels.
Remove all sensitive electronics from existing control cabinet, le, PLC, HMI, Modbus gateway, and all other door mounted components
Replace all control wires(12OVAC/24VDC), with new wires CP1240-A (New Control Panel)
Cost: $11,050.00
42x36x12 304 Stainless Steel Enclosure with lockable latch and dead front inner door.
PERC Water to provide new Allen Bradley components(PLC,HMI only) as well as the Modbus gateway device.
Includes Terminal Blocks to wire PLC connections between CP1240-A and CP1240 UL listed for the United States and Canada (panel and controls) Price is valid for 30 days and may change after 30 days. Panel quote is based on the description above.Not Included: Panel installation or start-up services.
S
E 22220 Opportunity WayS Suite 101, Riverside CA 92518 9514878073 (local) 888,7339283 (toll-free) vw.seewaterinc.com
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: 5
ORIGINATING DEP: Administration CITY MANAGER:
PREPARED BY: Jocelyn Francis, Assistant City Manager
SUBJECT: Reject Proposals Received for GIS Project
RECOMMENDED ACTION(S): Reject proposals received for Geographic Information System (GIS) Services and Software Project.
REPORT SUMMARY: The City of Avalon currently has a Geographic Information Systems (GIS) program managed with an outdated agreement. In December 2023, the City issued a request for proposal and received four proposals for GIS services in January 2024 ranging from $65,000 to over $500,000 for initial project implementation. Below are a list of vendors who submitted proposals.
AerialZeus, LLC Nobel Systems, Inc.
California CAD Solutions, Inc. Meyer Land Surveying
Vendors were invited to present the software program and proposals to a panel of City staff in planning, public works, and administration. Upon conclusion of the presentations,City staff decided against recommending to award a contract in favor of waiting for the new Information Technology Manager position to be filled.
Stated in the published RFP, the City reserves the right to reject any or all proposals determined not to be in the best interest of the City. Due to the fact it has been over a year since proposals received, and priorities have changed, it is recommended City Council reject all proposals and archive the RFP.
FISCAL IMPACTS: None.
GOAL ALIGNMENT: Not applicable.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City will continue to have an open RFP file.
FOLLOW UP ACTION: Archive request for proposal procurement file.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS: None.
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: (o
ORIGINATING DEP: Administration CITY MANAGER: ________ PREPARED BY: David Maistros, City Manager SUBJECT: Magical Cruise Company Ltd Preferential Anchorage AccessRECOMMENDED ACTION(S): 1. Authorize the City Manager to execute the Term Sheet with Magical Cruise Company Ltd, dba Disney Cruise Lines. 2. Authorize the City Manager to negotiate a Port Agreement with Magical Cruise Company Ltd, dba Disney Cruise Lines incorporating the terms set forth in the approved Term Sheet.REPORT SUMMARY: Magical Cruise Company Ltd, dba Disney Cruise Lines, has expressed its desire to enter into a port agreement establishing, among other terms, anallowance for defined scheduling dates in the City of Avalon. Currently there is no written policy regarding the scheduling of cruise ship anchorage requests.
In order to secure access to preferred dates, the City of Avalon and Disney Cruise Lines would establish a port agreement. A proposed port agreement would include the following terms as set forth in a formal Term Sheet:
- Initial term length of five years, with two additional five-year options.- Preferential scheduling for Saturdays and Tuesdays during the “Peak Season” (September 15 to May 15).
- Preferential scheduling for Tuesdays during the “Summer Season” (May 16 to September 14).
- Disney Cruise Lines shall guarantee a minimum of 120,000 passenger visits to the City per year.
o In the event of a shortfall in any given year, Disney Cruise Lines will remit payment at the current wharfage rate.
- Disney Cruise Lines proposes to remit the current wharfage rate ($7.50 per person for each passenger on the manifest) plus an additional $1.50 per person as consideration for preferential scheduling.
o This rate will be subject to annual adjustments equal to 2.5% per year.
At this time, Disney Cruise Lines has two vessels on the West Coast — Disney Magic and Disney Wonder. Both vessels have a maximum passenger capacity of approximately 2,700 passenger. Though these vessels are approximately half the capacity of some of the cruise ships that currently visit Avalon on Tuesdays, the proposed increased wharfage rate is anticipated to offset any potential loss of wharfage revenue associated with diminished passenger counts. Additionally, smaller capacity ships may provide an overall more enjoyable experience for passengers as well as other Island visitors and residents.
The reduced crowds will result in less congestion, greater activity opportunities, and quicker queuing at the Cabrillo Mole.
The proposed Term Sheet establishes a requirement for Disney Cruise Lines to submit a berthing schedule eighteen (18) months prior to that start of either season — Peak or Summer. If any Tuesday and/or Saturday are not booked by Disney Cruise Lines within 18 months prior to the start of the season in question, the date may reserved by another cruise line.
In addition to increased wharfage and a guaranteed minimum passenger count, Disney Cruise Lines also has offered to work collaboratively with the City to identify areas of opportunity or need and provide support and expertise to assist the City in developing strategies regarding design and engineering services, industrial engineering services,quality guest service culture and processes training, and operational efficiency analysis.
The exact scope of services to be provided will be formally memorialized either in the final port agreement, or by separate agreement(s) to be approved by the City Council.
City Staff recommends the City Council authorize the City Manager to execute the attached Term Sheet with Disney Cruise Lines and further, authorize the City Manager to negotiate the terms of a port agreement with Magical Cruise Company Ltd, dba Disney Cruise Lines. The final port agreement will be brought back before the City Council for formal approval.
FISCAL IMPACTS: Staff anticipate the action may have a net neutral effect on future fiscal year wharfage revenue projections.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City of Avalon will not have a port agreement with Disney Cruise Lines.
FOLLOW UP ACTION: Negotiate an agreement to bring back to the City Council for approval.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS: Proposed Term Sheet.
TERM SHEET
FEBRUARY 2025
This term sheet (“Term_Sheet”) is not a commitment and does not constitute an offer or create any bindingobligations (except as expressly set forth herein), but rather is solely for the purpose of outlining certain terms pursuant to which a definitive agreement may ultimately be entered into by Magical Cruise Company Ltd. cl/b/a Disney Cruise Line (“Cruise Line”), and the City of Avalon (the “çjy”) regarding Cruise Line’s desire to secure preferential access to the City’s anchorage point located outside of Avalon Harbor (the “Anchorage”)and use the City’s harbor facilities to support Cruise Line’s operations. Either party may discontinue discussionsat any time before signing definitive agreements, without liability or limitation.
This Term Sheet is confidential. Each party agrees that this Term Sheet and the terms set forth herein will notbe disclosed, quoted, or otherwise referred to without the prior written consent of the other parties.
Documentation In connection with the transaction, the parties will enter into a definitive transaction document as deemed necessary and appropriate by the parties (the “DefinitiveAgreement”).
Term of Definitive The Definitive Agreement will become effective upon execution (the “EffectiveAgreements: Date”) and expire on the fifth year (5th year) anniversary of the Effective Date (the “Term”).
The Term may be extended by the exercise of two individual additional five (5)year options, upon mutual agreement of the Parties.
Preferential Anchorage The City will grant Cruise Line preferential scheduling rights for the Anchorage asRights: follows:
. For the period of time beginning September 15 of each year and ending May 15 of the following year (hereinafter, the “Peak Season”) Cruise Line will hold preferential rights for every Saturday and Tuesday. . For the period of time beginning May 16 of each year and ending September 14 of the same year (hereinafter, the “Summer Season”) Cruise Line will hold preferential rights for every Tuesday.
The rights granted for the Peak Season and Summer Season will begin withrequests for anchorage starting October 1, 2027 (hereinafter, the “Preferential Rights”).
Cruise Line Passenger As consideration for granting Cruise Line with the Preferential Rights, Cruise LineGuarantee: will guarantee a minimum number of 120,000 passenger visits to the City per year (the “Minimum Annual Guarantee”) during the Term.In the event of a shortfall in any given year, Cruise Line will remit payment forsaid shortfall to the City. The shortfall payment will be calculated as follows:
(i) Minimum Annual Guarantee minus actual Cruise Line_passenger counts for the applicable calendar year
Multiplied by
(ii) Then current Wharfage Fee (as defined herein)
In the event of a surplus in any given year (actual Cruise Line passenger volume is greater than the Minimum Annual Guarantee), Cruise Line will be allowed tocarry over such surplus into the following year to cover any potential shortfall that may occur. Notwithstanding the foregoing. the parties agree that any surplus (i)may only be carried over once for the following year and (ii) cannot exceed FiveThousand passengers (5,000).
Wharfage Rate: City Council establishes the cruise ship wharfage rate applicable to all cruise ships through legislation and that rate is codified in the Avalon Municipal Code.
Effective January 1, 2026, the cruise ship wharfage is $7.50 for each passenger reflected on the cruise ship manifest. (“City Wharfage”)As consideration for granting Cruise Line with the Preferential Rights, Cruise Line will agree to a Wharfage Rate equal to One Dollar and Fifty cents ($1.50) additional to the City for use of the Citys Harbor facilities. Wharfage as reflected in the Avalon Municipal Code (hereinafter, the “Wharfage Fee”).
The Wharfage Fee will be subject to annual adjustments equal to Two and a Half Percent (2.5%) per year.
Scheduling Cruise Line will submit a cruise ship berthing schedule to the City not less than Requirements: eighteen (18) months prior to the October 151 start date of each fall/winter cruise season (October 1 St — May 30111) and eighteen (18) months prior to the June 151 start date of each summer cruise season (June 1 — September 30th)Any Tuesday and/or Saturday that Cruise Line holds Preferential Rights that are not booked by Cruise Line within 1 8 months prior to date in question may bebooked by City for another cruise line.
Cruise Line Support: Cruise Line will work collaboratively with the City to identify areas of opportunity or need and provide certain support and expertise via Cruise Line resources toassist City in developing strategies regarding any of the following:
• Design and engineering services
Industrial engineering services
Quality Guest service culture and processes training
• Operational efficiency analysis
The scope of services to be provided will be mutually agreed to by the parties on an annual and as-needed basis.
2 OTHER PROVISIONS:
Expenses: Each party shall be responsible for paying their own legal and out-of-pocket due diligence expenses related to the Definitive Agreement.
Governing Law: This Term Sheet and all documents entered into in connection with the proposed transaction will be governed by California law.
Binding Provisions: The CRUISE LINE and the City agree that the provisions within this Term Sheet with the following titles are binding: Expenses, Governing Law and Biiiding Provisions.
jSIGNATURE PAGE FOLLOWSj
In consideration of the foregoing, the parties hereto have executed and delivered this Term Sheet as of the date first written above.CRUISE LINEMAGIcAL CRuIsE CoMPANY, LTD.
DIBIA DISNEY CRUISE LINE
By:
_______________________
Name:
Title:
CITYCITY OF AvAL0NBy:_______________________
Name:
Title:
3 CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM:
ORIGINATING DEP: Harbor CITY MANAGER: _______ PREPARED BY: Kevin Schmidt, Harbor MasterSUBJECT: Patrol Boat 4 Hull Repairs and Paint RECOMMENDED ACTION(S): 1. Make the affirmative finding that the City will not gain a competitive advantage by using the formal contract bid or other competitive procedure and dispense with formal bidding or other competitive procedures as outlined in Avalon Municipal Code Section 3-4.106. 2. Authorize the City Manager to approve an expenditure not to exceed$30,000, from the Harbor Capital Improvement budget, account 10470-6781, for major repairs and refurbishment to be done to the hull of Patrol Boat 4.
REPORT SUMMARY: Patrol Boat 4 is part of a fleet of seven (7) boats necessary to carry out the day-to-day operations of the City of Avalon Harbor Department. It is one of the primary patrol boats used in wintertime operations. After being taken to the mainland for an enginereplacement, it was discovered to have some significant hull issues that need to be repaired as soon as possible. These repairs will extend the useful life of the boat for several years.
Basin Marine has provided an estimate of $25,955 to complete the project and they are able to start the job immediately.
Avalon Municipal Code Section 3-4.106 requires a competitive process be implemented for procurements greater than $25,000. However, AMC Section 3-4.111 (c) allows for exceptions for bidding or other competitive procedures for economic efficiency. Per the AMC:
If a competitive market does not exist, or the City will not gain a competitive advantage by using the formal contract bid or other competitive procedure, or where the public projec1, goods or services may be obtained more economically or efficiently without the procedure, the City may dispense with formal bidding or other competitive procedures.
It would also be economically efficient to have the work done at Basin Marine, where the boat is currently located. It would require substantial additional costs to transport the boat to three different vendors to meet the requirement of three competitive bids.
Additionally, due to the importance of this boat for wintertime operations an urgent condition exists to have the hull repairs done as quickly as possible.
Staff recommends the City Council makes the affirmative finding that the City will not gain a competitive advantage by using the formal contract bid or other competitive procedure anddispense with formal bidding or other competitive procedures as outlined in Avalon Municipal Code Section 3-4.106. Staff also recommends the City Council authorizes the City Manager toapprove an expenditure not to exceed $30,000, from the Harbor Capital Improvement budget, account 10470-6781, for major repairs and refurbishment to be done to the hull of Patrol Boat 4 GOAL ALIGNMENT: Fleet management.FISCAL IMPACTS: Major repairs to patrol boats were anticipated in the adopted Fiscal Year 2024-25 Budget for Vehicle Replacement, 10470-6781.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Harbor Department personnel will not have an essential piece of equipment for winter-time operations.FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS: Estimate from Basin Marine.
I1jis :-.I,ind Dnu wprr (ma • Ism )4) ) • Fa )4 h
ESTIMATE
(‘FEY OF AVAION
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WE APPRECIATE YOUR m;5INEsY
Pay from invoice. Due & Payable Upon Presentation
A Finance Charge t 1 1/2% per monthwit be charged on accounts 30 days past due.
Invoice Number
Invoice Date 2 II 2025
Boat NameHARBoR PATROL 4
Sales Tax Outside MaterialsSales lax Materials
Waste Fee
B 1-1
S*K-iD.
I nit E aboi M Itri41 Description Qty . Labor Material 1>race Outside Outside LA Ho R
BLII.I) PLUG It) RI .OCK OFF 01 .1) SI ERN DRIVE.
FIBERGI ASS ENTIRE TRANSOM.
SANI) AM) FAIR IRANSOM READY 10 PAINE,
I lARRY’S MARINE TO (“UT QUiTRANSOM FOR
NEW OL l’DRIVE. ALl ER REPAIRS.
LABOR: 40.0 [IRS , SI 75.00 40 175,00 7.000.01) 2.000,00 I III RULASS AND REPAIR I IIJI,LCI lINE DAMAGE AREAS
NOir /Qfl))/ ill!) .s’/X’TIoV is’ I ‘frj’) 7’H/V)
I, ;\BOR; 36,1)1 IRS I SI 75.0(3 36 I 75.00 6,310.00 2.000,00 SAM) PR1 P ANI) PAINT HULl. SIDES ANt) TRANSOM
‘\‘ H H A\kI.GRIP I ORLADOR RED
lABOR: 25.0 FIRS ‘a SI 75.00 25 I 75.0(1 4375.00 2.000.0(3 PREP ANI) PAINT AN III:OUUNG Al [ER REPAIRS
I.ABOR: 20 FT X $25.00 PER FOOT 10 25.00 500.00 1,300,00 Subtotals 18,175.0(1 7,300.00 0,00 0.01)
0.01)
330.00
150.01)
Total Due. (All Pages) I S25,95.OO
Pae I a! I
TERMS’AND CONDITIONS OF SERVICE
This agreement (Agreement) is by and bet’ween BASIN MARINE, INC. (‘Bsirs”) and Customer’ (identified on Page 1 of this Agreement, and provides as follows:
Method of Performance. Customer agrees to ehggeBasin to make certoinrenovàtions, ftnodificlions, impovements and/or Repairs, including furnishing supplies and goods to be affixed or furnished in which to make such Repairs (collectively, ‘Repairs”) to Customers vessel (identified onpage 1 of this Agreement as tho’”Vessel”). Thb Repairs ace only those detailed and described onpage 1 of this Agreement at Basins rate’for such goods and services. Customer expressly agrees that Basin is In make such Repairs as stated on Page 1 ci this Agreement (including the provisionof supplies and other goods) to said Vessel, and only those Repairs. Unless otherwise indicated in ttfis Agreement, Customer agrees In pay Basin any and all costs, charges and fees for all labor, supplies, goods and materials expended or furnished by Basin or arising out of the Repairs or this Agreement within two (2) days following the end of each thirty-day period during which such Repairs are made, or upon receipt of an involce for alt work performed to the dale of such Invoice.1 (a)Additional Services, Basin and Customer herein agree that this Agreement may be subsequently amended, but only In writing, to include additional renovations, modifications, improvements and/or Repairs which Basin agrees to undertake at Customer’s request if feasible in tight of other commitments. Any such additional services strait be provided at Basin’s customary rates andCustomer agrees to pay thereforo immediately upon receipt of an invoice thereof. 1 (b)Time. Any estimates by Basin as to the time or date of completion on any Repairs shall not bind Basin, and Customer’s obligation for payment to Basin for all costs, charges and tees for labor rind materials shall not be limited or affected in any way if the completion time or date tar any Repairs goes beyond the time or date estimated by the parties at the time of execution of thisAgreement, even if such delay is solely or partially caused by Basin’s negligence..
2. Termination and Breach. In the event that Customer fails to pay as required under this Agreement, in addition to all remedies available at law or in equity, Customer expressly agrees that Basin has the right to hold as security for payment -without obligation to Customer -the subject Vessel at its premises until ouch time as Customer makes all required payments. Customer further agrees to pay br any slIp or dock fees incurred by Basin during the time period the Vessel is held by Basin as security for nsa-payment. Customer also agrees that Basin has the right to obtain and exer cise any lien, maritime or otherwise, against the subject Vessel and foreclose said lien or liens against the Vessel in any court of competent jurisdiction. Customer lurthor agrees not permit any lienor other encsmbrance to be pTaced against the Vessel while ills in Basin’s possession. The parties also agree that no part of this Agreement shall be constmed or interpreted to mean that Basin has waived any rights it may have under any provisIon of statutory and common law to assert or foreclose any lien against the Vessel! The parties agree that any party to a Hen foreclosure action of any kind shall be entitled to recover its costs, including but fbI limited to its reasonable attorneys tees.
3. Delays. Ho delay by Basin in exercising any power of right hereunde and no partial exercise of such power or right, shall operate In any way as a waiver of any subsequent exercise thereof. Basin shall not be liable for. or prejudiced by, failure to collect or lack of diligence in bringing a claim under this Agreement, or any renewal or extension thereof.
4. Moving and Operating Vessel. Basin and Customer expressly agree that Basin, its agents, employees or contractors, may move the Vessel while it is on Basin’s premises, operate the Vessel! for any reason, or launch the Vessel for army reason, whatsoever.
5. Custody and Control of Vessel. Basin and Customer eapressly agree that while the Vessel is on Basin’s premises, the Vessel is not deemed to be in Basin’s sole custody, possession or control, as Customer agrees that Customer, and Customer’s agents, employees and contractors, as well as third parties, trace and may have access to tIre Vessel while it is at Basin’s premises 6, Agreement As To Repairs If No Survey. Customer is aware that surveyors are available to Customer, but Customer, for whatever reason, desires that Basin undertake work per Customer’s reqaest on the Vessel without a survey, Customer understands that Basin recommends that tire work not be undertaken without a survey. Customer understands that the only way to assure that all necessary work, including the wort necessary to assure the Vessels seaworthiness, is performed, is to have a survey conducted prior to Basin performing the Repairs. Customer assumes all risks Inci dent to Basin performing the requested work on the Vessel without a survey.
7. Waiver and Indemnity. Customer expressly agrees that vessels, ship yards, marinas and areas in and around shipyards, marinas and marine repair faclities can be hazardous to both properly and persons, thereby posing asubstuntial risk of damage nod injury to both property and persons. Such hazards include, but are not limited to slips, falls, flying and failing tools, vessels and other objects,toxic or noxious fumes, tires, explosions, falls overboard, drownings, prop Wash, wave end wind damage, vessel collisions and vessel sinkings. Coslonmer expressly agrees, mrs a material part of limo consideration for this Agreement, that Customer hereby waives, expressly assumes the risk of, and releases Basin from army and all liability for any claims, including subrogation, fur damage, injuryor death to Customer, Customer’s agents, employees, contractors, family, or guests that may occur for any reason whatsoever, oven if said damage, injury or death occurs solely or partially as aresult of negligence of Basin, its agents, employees or contractors. Customer also agrees to release, hold Basin harmless and indemnity it from and against any and all damages or losses, expenses, fees for property damage or loss, including claims of subrogation, incurred or claimed solely or partially as a resell of any negligence by Basin, its agents, employees or contractors, 8, Insurance. Customer shalt at all times while Vessel is en route oral Basin’s facility, and at Customer’s own cost amid expense, maintain liability and property damaga Insurance (which insurance shall provide primary rather than secondary’ coverage) on the Vessel with liability limits in amounts sufficient to ensure performance by Customer of tire hold harmless and indemnity provisions In Paragraph land shall have Basin expressly identified in the insurance policy as an additional named insured Customer shall, in any event, carry liability insurance and property damage insurance, with accidental pollution coverage, with limits of at least S1,000,000.00. Basin requires Customer to provide evidence satisfactory to Basin of compliance with Customer’s obligations to insure, Customer’s failure to comply with or demonstrate compliance with this provision, however, does not in any way constitote a waiver by Basin of tb’s provision.
9. Limitation on Damages If All Else Fails. [lie parties expressly agree that, even it the every other provision of this Agreement is deemed invalid, unenforceable or inapplicable, Basin’s liability, including on claims of subrogation, for loss or damage to any parsons or property, including tho Vessel, arising out of this Agreement shall have a maximum limit of nu more than Si ODD or the cost of the Repairs, whichever is the lesser amount, even II Basin and/or its agents and/or employees are found to be partially or solely nogligenl.
10. Wananties and Exclusions. Customer agrees that Basin has excluded all warranties express or implied, including but riot limited to the implied warranties of merchantability and fitness for a par ticular purpose. My warranties on the products sord or otherwise used by Basin during the course of any Repairs are those made by the manufacturer, not Basin, Customer agrees that Basin has not made any warranties whatsoever regarding the Vessel or Basin’s premises, or any products sold or used with respect to lire Vessel, including but not limited to compliance with any applicableindustry standards, or gonemn mental regulations (OSHA, Coast Guard regulations, etc.) Basin disclaims and excludes from lius transaction any and all warranty obligations other than those which may be imposed by applicable law. Customer, however, expressly warrants the seaworthiness of the Vessel.
11. Detention and Demurrage. The parties expressly agree that Basin shall not be liable for any demurmage, detention, or delays with respect to the Vessel, even if such delays are caused by Basin’s breach of this agreement or negligence,
12. Opt-Out Proalsion. Should Customer wish to be relieved of the effects of Paragraphs 1-11, Owner may do so by agreeing to an increased charge of 1110% of the otherwise applicable Repair tees and Costs to cover the additional potential liability that Basin may incur, and the insurance that Basin will have to purchase in order to accept such potential liabIlity.
13. Notices, Any notice to either party to this Agreement by the other shall be deemed to have been properly given if sent by facsimile or malted to said party by certified mail return receipt reqoested to the tacsirniles or addresses appearing on the first page of this Agreement or such other facsimile or address or person as either party may designate by written notice to the other party hereunder, A notice hereunder shall be deemed to have been given as of the date it was received.
14. DISPUTE RESOLUTION. Except with respect to Basin’s right to bring an action to assert a lien or collect on unpaid invoices, the parties express ly agree that to have all disputes, suits or claims arising out of or relating to this Agreement fully arid finally decided by binding arbitration pursuant to the rules and procedures of the American Arbitration Association (“AAA”) in Orange County, California. The parties expressly waive their right to a trial by jury and the right of appeal. The parties further agree that this Agreement shall be enforceable and any court having jurisdiction may enter a judgment upon any award rendered by the arbitrator(s).
15. Warranty of Arithority/Parlies to Agreement. Each party signing this Agreement warrants that he, sire or it has the authority to bind the parties on whose behalf be, she or it is executing this Agreement, locluding those acting as agents or assignees of a party or the Vessel to the Agreement. Customer agrees that all rights and obligations under this Agreement shall be binding upon Customer’s heirs, successors, assigns, insurers, principals, agents, employees, guests and family members. Tills Agreement shall Inure to the benefit of and be enforceablo by Basin sod ils respec tive successors and assigns.
16. Integration Clause. This Agreement constitutes the entire agreement and understanding between tile parties concerning the subject matter hereof, and it supersedes and replaces any nod all prior negotiations and agreements of any kind or nature whatsoeveç written or oral.
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: ________ ORIGINATING DEP: Public Works CITY MANAGER: _______ PREPARED BY: Jamie Hmielak, Maintenance Superintendent SUBJECT: Green Pier Restroom Renovation Project
RECOMMENDED ACTION(S): Authorize the City Manager, per the City’s purchasing policy, to execute an agreement with MKS Specialty Finishes, Inc., and Geoff King Plumbing, to perform renovation work to the public restrooms located at the Green Pier at a cost not to exceed $100,000 from the Green Pier Restrooms CIP fund (10470-6547) Project #247005.
REPORT SUMMARY: The public restrooms at the Green Pier have been in use for approximately thirty years and are in need of significant upgrades to meet current standards ofaccessibility, hygiene, and aesthetics. The restrooms serve a high volume of residents and tourists, making their renovation a priority for maintaining the city’s reputation and ensuring public comfort and safety.
This project was identified as a priority by City Staff and $100,000 was budgeted in CIP Project#247005, Fund 10470-6547 for Fiscal Year 2025-26. However, due to increased levels of need,the project has been scheduled to be completed before the end of the current Fiscal Year. Per the City’s adopted Budget and Fiscal Policies:
“For transfers under $100,000, City Manager approval is required for transfers between capital projects in the same year and same fund.”
To fund this project, the City Manager has authorized a transfer from Capital Improvement Project #180049 — Green Pier Repairs. This project has the same fund as the Green PierRestrooms Project (10470-6547) as well as $450,000 budgeted this Fiscal Year.
The renovation will include the installation of new toilet partitions, urinal screens, and improved lighting throughout both restrooms. This work is to be done by our Public Works staff. The flooring in the women’s restroom is still in relatively good condition, but the men’s restroomflooring is in need of replacement. MKS Specialty Finishes will install new concrete flooring in men’s restroom, which will include reinforcing the existing subflooring. All new toilets are to be installed in both restrooms by Geoff King, with help from Public Works. During construction, temporary restroom facilities will be provided to minimize inconvenience to the public. Efforts will be made to ensure that disruption is kept to a minimum.
MKS Specialty Finishes and Geoff King Plumbing were selected based on their extensive experience with similar projects, competitive pricing, and positive references. Quotes were requested from two other local contractors. Both Straight Up Builders and Elias Garcia Construction reviewed the project, but declined to provide a quote. This fulfills the competitiveprocess purchasing procedure requirement specified in the Avalon Municipal Code Section 3-
4.106(a).
It is recommended that the City Council authorize the City Manager to execute contracts with MKS Specialty Finishes, Inc., and Geoff King Plumbing, to complete the renovation of the publicrestrooms at the Green Pier, with a total project budget not to exceed $100,000. Authorizing these contracts will allow for the timely and efficient renovation of the public restrooms at the Green Pier, enhancing the facility for all users and ensuring compliance with modern standards.FISCAL IMPACTS: Allocate $100,000 from Green Pier Restrooms CIP fund (10470-6547)Project # 247005 to allow the renovation project to be performed.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Continued use ofoutdated and deteriorating restroom facilities may lead to increased maintenance costs and more frequent repairs, further straining the city’s resources. Residents and tourists may continue to express dissatisfaction with the state of the restrooms, impacting the city’s reputation as a desirable destination.
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: Quotes from MKS Specialty Finishes and Geoff King Plumbing.
Geoff King Estimate
P.O. Box 554
Avalon, CA 90704
(310) 510-0751
State License # 762362
DATE ESTIMATE#
10/24/2024 805
DESCRIPTION
Bid Job. Green Pier restrooms. remove 13 wall hung toilets. Install 13 new wall hung toilets & flush valves, to be provided by City of Avalon. LaborBid does not include any floor drains and will be additional ifrequired. Additions, extras, changes & unforeseen problems or issues (i.e. not limited to rusted /corroded or broken toilet carrier anchors, salt water piping) will be extra $150.00 per hour + materials + 30% mark up on materials.
Bid Job, replace 13 water closet wall hung carriers. LaborMaterial, 1 3 Jay R Smith water closet carriers, hardware, anchorsand installation suppliesMaterials. Split support brackets. ZURN l200-NEOSEAL-GSKT-4 WM, Gaskets. F-IN FINISH TRIM F/FLR CARRIER GSKT/CAP
NUT FINISH KIT AFWALL 0256F1N
FreightPermit not included and will be additional if required. Bid does not include any floor drains and will be additional if required.
Additions, extras, changes & unforeseen problems or issues (i.e. not limited to rusted /corroded or broken toilet carrier anchors, re-piping salt water piping) will be extra @ $1 50.00 per hour + materials + 30% mark up on materials.. This bid includes connection materials & Labor.
TOTAL
NAME I ADDRESS
Avalon City ofP.O. BoxAvalon, Ca. 90704
PROJECT
TOTAL
7,800.00
15,600.00
10,934.90
2,380.00
200.00
$36.9 14.90
%\
Matthew K. Sullivan
Specialty hnishc Inc 8183843190
April 15, 2024
City of Ava Ion
Jackeline Cordero
Director of public works Revised 3
Green Pier men’s bathroom tile floor concrete base treatment Removal of floor tile for mortar base restoration
1. Carefully saw cut 1.5” plus deep just outside the black cove base boarder to preserve the existing black mosaic tile border.
2. After cutting the border, carefully detail the edge removing all the grout from the leading edge of the remaining black mosaic tile.
3. Carefully cut out sections of existing tile mosaic field tile with 1”of mortar bed still attached to preserve as much as possible for repairs to the women’s bathroom floor. (probably max 12” square sections depending on the cutting device available)
4. Chisel out soft spots in the existing mortar bed.5. Remove all loose particulates.6. Depending on the conditions they will help dictate the solution.
Stiffen the existing cracked mortar bed utilizing the existing mortar bed material
1. Cut a 3”x 3” grid pattern in the mortar bed W’wide by 1.5” deep through the undulated uneven cracked mortar bed
2. Blow and vacuum all loose powdery residue.
3. Pour copious amounts of resin epoxy moisture barrier combined with Cabosil into the cut grid pattern and porous existing mortar bed until fullysaturated.
4. Apply one additional coat moisture barrier with full broadcast # 16 Silica sand to create a rough binding surface for a cementitious level surface material.
The above option to create a stiff mesh in the mortar bed that will combat uplifting from below and stop moisture from rising anddelaminating the finish surface. 466 Foothill Blvd. #367, La Canada, CA 91011 License 750972 626.286.1029 Fax: 626-286-1059 Cost breakdown for labor only
1. Cut mosaic tile border 2 men 10 hours 20 hours @ 121.00 $ 2,420.00 Per diem 2 days @ 124.00 $ 248.00
2. Cut out field tile to save portions and completely remove the remainder. 4 men 20 hours 80 hours @ 121.00 $ 9,680.00
Per diem 4 men 2 days 8 days @ 124.00 per day $ 992.00
3. Stiffen Mortar bed
Cut grid, Copious fill with epoxy moisture barrier and level.3 men 40 hours 120 @ 121.00 $ 14,520.00 Per Diem 3 men 4 days @12 days @ 124 1,488.00
4. Install color quartz sand epoxy floor or Troweled Cementitious micro topping 3 men 30 hours 90 hours @ 121.00 $ 10,890.00
Per diem 3 men 3 days 9 days @ 124 1,116.00
Total amount of the above cost from March of 2024 $ 41,354.00 DIR registration fee $ 400.00
Certified payroll admin $ 500.00CPI increase from last year 3.2% $ 1,233.00 Total for the above $ 43,478.00All materials required for the above work to be supplied by the City of AvalonIncluding waste removal and disposal and all Transportation of materials and debris 466 Foothill Blvd. #367, La Canada, CA 91011 License 750972 626.286.1029 Fax: 626286-1O59
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: ________ ORIGINATING DEP: Administration CITY MANAGER: _______ PREPARED BY: Robert Greenlaw, Capital Projects Director SUBJECT: Professional Services Agreement for Preliminary Site Assessment, Soil and Water Investigation, Corrective Action Plan and Verification Monitoring for Underground Storage Tank Site at the Avalon Fuel Dock.
RECOMMENDED ACTION(S): Authorize City Manager to negotiate and execute aProfessional Service Agreement with Wayne Perry, Inc. for a not to exceed amount of $60,000 for Site Assessment, Soil and Water Investigation, Corrective Action Plan and Verification Monitoring for underground storage tank site at the Avalon Fuel Dock.
REPORT SUMMARY: The State of California requires the owners or operators of specific types of underground fuel storage tanks to permanently close by December 31, 2025. In response to that requirement the City just recently completed the removal of the four existingunderground storage tanks at the Avalon Fuel Dock. As part of the removal process the open excavation was tested for regulated contaminates, then the excavation was backfilled after an initial consultation with regulatory agencies along with the replacement of the concrete surfacing. Subsequent processing and analysis of the test results was then distilled into aclosure report that made its way through several regulatory agencies over the subsequent few months following the site closure.
The closure report was first reviewed by the Los Angeles County, Department of Public Works (LADPW) under their Underground Storage Tank (UST) program. If LADPW was satisfied that the site was clean then it could file a favorable report with the Los Angeles Regional Water Quality Control Board (LARWQCB), the agency responsible surface and ground water quality in Los Angeles County. If there are some concerns with the results of the closure report, thenLADPW transmits their concerns to the LARWQCB which then opens a case and requests corrective actions. In the case of the Avalon Fuel Dock, the Board requested a work plan andadditional information from the City’s closure contractor. The request was based on information in the closure report that stated that a portion of the test results showed that site had beenimpacted with petroleum constituents and the extent of the constituents had not been fully delineated.
Wayne Perry, Inc. was the City’s fuel station contractor for the UST removal project and alsofor the project to connect the new replacement above ground storage tank (AST). They were responsible for the Closure Report preparation and follow-up with the agencies to facilitate the closure to this point. Wayne Perry is intimately aware of the details of the fuel facilities at the Avalon Fuel Dock. In addition to the UST and AST projects, Wayne Perry was the fuel station subcontractor for the reconstruction of the Avalon Fuel Dock and the seasonal fuel float project. Considering their background knowledge and expertise with the Avalon Fuel Dock, City staff requested a proposal for the Work Plan scope as they are the most knowledgeable and qualified to provide the services efficiently as they are already fully engaged with the project. The authority to procure services in this method is specified in AMC section 3-4.11 1:
Exceptions from Bidding and Other Competitive Procedures Economic Efficiency. If a competitive market does not exist, or the City will not gain a competitive advantage by using the formal contract bid or other competitive procedure, or where the public project, goods or services may be obtained more economically or efficiently without the procedure, the City may dispense with formal bidding or other competitive procedures.
The scope of the work is attached to this report and is estimated to cost $53,688 billed on a time and materials basis. City staff requests authorization for City Manager to negotiate and execute a professional service agreement with Wayne Perry, for a not to exceed amount of$60,000 to help cover any contingencies.
The project is included in the FY24-25 Budget and Capital Improvement Plan — Project Number 207004, Account Number 11470-6647. Costs may be reimbursable under the State’sUnderground Storage Tank Cleanup Fund. City staff will follow-up on this possible funding source.
GOAL ALIGNMENT: City Infrastructure.
FISCAL IMPACTS: To be determined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City may notmeet the requirements of LARWCQB for a Work Plan.
FOLLOW UP ACTION: Negotiate and execute a Professional Services Agreement.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
(1) Proposal from Wayne Perry, Inc.(2) LARWQCB UST Program — Work Plan Approval Letter (3) Wayne Perry Site Assessment Letter Work Plan Response Letter(4) LARWCQB Work Plan Requirement & Request for additional Information Letter December 24, 2024
City of AvalonAttn: Bob Greenlaw
410 Avalon Canyon Road Avalon, CA 90704
Location:
2 Casino Way, Avalon, CA — Avalon Harbor Fuel Dock
Dear Mr. Greenlaw,
The below general scope of work and attached Time and Materials rates are provided to City of Avalon to demonstrate the general professional services that will be billed at time and materials rates in accordance with the industry standard for performance.
Scope of Work
Scope of work for site assessment to be completed under this estimate includes the following:
Pre-Jield activities include:
• Creating WPI Site Safety and Health Plan, as necessary;• Scheduling subcontractors;• Obtaining necessary county drilling permits; and• Marking the site and notifying Underground Service Alert at least one week prior to commencement of work to perform an underground utility clearance for the planneddrilling locations.
Field Activities Include:
• Prior to drilling, a geophysical survey will be performed to locate all underground utility lines in the vicinity of the proposed soil boring locations. Boring locations will be hand cleared to a depth of five feet.
City of Avalon — Avalon Harbor Fuel Dock
December 24. 2024
• Five soil borings will be hand cleared to approximately 5’ and drilled in the vicinity of the former UST tank pit. Soil samples will be collected every 5 feet from 5 to 20 feet. Agroundwater sample will be collected at each location. • All soil and groundwater samples will be submitted to a state-certified laboratory for chemical analysis.
• Any waste generated will be placed in 55-gallon drums and stored on the site until being transported off-site to a licensed facility for disposal. • All work will be performed under a site-specific WPI health and safety plan and the supervision of a California Professional Geologist.
Office Activities Include:
• Project Management, communications, data tabulation. data analysis, data evaluation, recommendations, preparation of a site assessment report, data upload to Geotracker. • Preparing invoices in accordance with Fund guidelines and submitting the invoices directly to City of Avalon for payment. Communication associated with this process.
Work will be completed on a Time and Materials basis according to the estimate attached.
An estimate for the first step response to the Los Angeles Regional Water Quality Control Board letter is attached — the estimated costs are: $53,688.
2 City of Avalon — Avalon Harbor Fuel Dock
December 24, 2024
Limitations
This scope of work document has been prepared by Wayne Pery, Inc. for the exclusive use of City of Avalon as it pertains to consulting and field services for the various locations. WPI will perform limited scope of work as described in this proposal, clients purchase order, and addenda. The activities will be performed at specific areas of environmental concern identified by previously collected data, other impacted media may be present at other such areas of the site.
Therefore, despite the use of reasonable care, WPI may need to adjust the site conceptual model as data is received. No warranty or guarantee concerning the findings or conclusions of thisscope of services will be offered or intended. Rather, WPFs proposed scope and performance of the professional services will be rendered in accordance with the current state of practice as conducted in the region by similarly qualified practitioners.Summary We will use experienced professional staff to meet the responsive performance requirements for this important environmental project. Wayne Perry, Inc. appreciates the opportunity to provideour professional environmental services to City of Avalon.
If you have any questions or comments, please contact the undersigned at (714) 826-0352.Si ii cere ly,Wayne Perry, Inc. ) - /
Miriam Urena
Project Manager
Wayne Perry, Inc.
Cost Estimate
Site: Avalon Harbor Fuel Dock -2 Casino Way, Avalon, CA Description Quantity Units Rate Totals
Work Plan PreparationSenior Project Manager/Geologist 8 hrs. $145 /hr. = $1,160 Project Manager 8 hrs. $125 /hr. = $1,000
Junior Professional 4 hrs. $85 /hr. = $340
Subtotal $2,500
Work Plan Execution and ReportingProject Management and ReportingSenior Project Manager/Geologist 30 hrs. $145 /hr. = $4,350 Project Manager 30 hrs. $125 /hr. = $3,750
Junior Professional 6 hrs. $85 /hr. = $510
Permit Technician 3 hrs. $80 /hr. = $240
Senior CADD Operator 6 hrs. $73 /hr. = $438
Administrator, Secretarial 6 hrs. $60 /hr. = $360
Subtotal $9,648
PermittingPermit Fee lump sum = $467
Subtotal $467
Field LaborProject Manager 55 hrs. $125 /hr. = $6,875Ferry Roundtrip Ticket 5 ea. $150 lea. = $750 Per Diem 3 days $350 /day = $1,050
Geophysical Survey lump sum = $1,932Drilling Subcontractor lump sum = $23,566Disposal of Investigation Derived Wastes 1 Drum $700 /ea. = $700Soil Analytical Testing (EPA 8015, 8260) 25 ea. $216 /ea. = $5,400Sampling Supplies and Field Equipment lump sum $800 Subtotal $41,073
TOTAL ASSESSMENT COST $53,688
Gvq Nuv’s..,
-
Water Boards
Los Ang&es Regional Water Quality Control Board
January 13, 2025
City of Avalon
Attn: Mr. Bob Greenlaw410 Avalon Canyon Road
Avalon, CA 90704
UNDERGROUND STORAGE TANK PROGRAM -WORK PLAN APPROVAL
AVALON HARBOR FUEL DOCK
2 CASINO WAY, AVALON
(CASE NO. R-54267A; GLOBAL ID. TI 000002281 0)
Dear Mr. Greenlaw,
The California Regional Water Quality Control Board, Los Angeles Region (Los Angeles Water Board) is the public agency with primary responsibility for the protection of ground and surface water quality for all beneficial uses within the Los Angeles and Venturacounties. As such, the Los Angeles Water Board is the lead regulatory agency for overseeing corrective actions (assessment and/or monitoring activities) and cleanup of releases from leaking underground storage tank (UST) systems at the subject site (Site).
Pursuant to Health and Safety Code section 25296.10, the City of Avalon is required to take corrective action (i.e., Preliminary Site Assessment, Soil and Water Investigation, Corrective Action Plan Implementation, and Verification Monitoring) to ensure protection of human health, safety and the environment. Corrective action requirements set forth inCalifornia Code of Regulations (OCR), Title 23, Chapter 16, sections 2720 through 2727.
Los Angeles Water Board staff has reviewed the following items, submitted by WaynePerry, Inc. (WPI), on behalf of the City of Avalon:
• “Site Assessment Work Plan” (Work Plan), dated December 30, 2024. • “Request for Additional Information,” dated December 30, 2024. • Email correspondence from January 9, 2025.
Los Angeles Water Board staff has also reviewed the information contained in the case file and in GeoTracker.
NORMA CAMACH0, CHAIR SuSANA ARRED0NO0, EXECUTIVE OFFICER 320 West 4th Street, Suite 200. Los Angeles, CA 90013 www.waterboa,ds.ca.qov/losangeles City of Avalon January 13, 2025
2 Casino Way, Avalon
Site Assessment Work Plan
In the Work Plan, WPI proposes advancing five soil borings to delineate soil and groundwater impacts beneath the Site. During UST removal activities in May 2024,groundwater was encountered at approximately 10 feet below ground surface (bgs). Due to the Site’s proximity to Avalon Bay, the depth to groundwater likely varies with the tides.
WPI anticipates encountering groundwater between 10 and 15 feet bgs. The borings will be advanced to a depth of approximately 20 feet bgs, or five feet below first encountered groundwater, using a direct push drill rig. Soil samples will be collected every five feet and preserved for laboratory analysis via Environmental Protection Agency (EPA) Method 5035. The soil will be field screened using a photo-ionization detector (PID) and visually examined for soil classification. A 10-foot temporary screen will be placed intoeach boring and will be set at the total depth. Groundwater samples will be collected at each boring using a pencil bailer. Soil and groundwater samples will be analyzed for total petroleum hydrocarbons as gasoline (TPHg) and total petroleum hydrocarbons as diesel (TPHd) by EPA Method 8015M, and for benzene, toluene, ethylbenzene, total xylenes (collectively, BTEX), and fuel oxygenates by EPA Method 8260B. Following soil and groundwater sampling activities, the borings will be backfilled with neat cement grout andcapped with concrete.
Work Plan Approval (per CCR, Title 23, Chapter 16, §2725) Los Angeles Water Board staff concurs with the Work Plan, provided the following conditions are also met:
1. All necessary permits must be obtained from the appropriate agencies prior to the start of work.
2. Soil samples shall be collected at five-foot intervals beginning at 5 feet bgs, at changes in soil lithology, and at areas of obvious contamination for geologicallogging and preserved per EPA Method 5035 for chemical analysis. All soil samples collected must be field screened for petroleum hydrocarbons using either a PID or a Flame Ionization Detector (FID). Soil samples shall be analyzedregardless of PID or FID readings. Soil samples collected from the offsite borings do not need to be analyzed.
3. The City of Avalon is required to submit a Site Assessment Report (Report) detailing field activities, boring advancement, soil and groundwater sampling results, and associated laboratory reports. The Report must included, at a minimum, a discussion of the activities performed, summary data tables (includinghistorical data), a scaled site map depicting final boring and sampling locations, soil boring logs, evaluation of the data, and recommendations. The Report is due to the Los Angeles Water Board by April 15, 2025.
-2-
City of Avalon January 13, 2025
2 Casino Way, AvalonGeneral Requirements
1. Soil and groundwater samples must be analyzed for TPHg, TPHd when diesel is identified at the site, and for BTEX, naphthalene, and fuel oxygenate compoundsincluding methyl tertiary butyl ether (MTBE), di-isopropyl ether (DIPE), ethyl tertiarybutyl ether (ETBE), tertiary amyl methyl ether (TAME), tertiary butyl alcohol (TBA), and ethanol. For a waste oil tank, the full suite of aromatic and chlorinated analytesmust be tested per EPA Method 8260B, and polycyclic aromatic hydrocarbons (PAHs) must also be tested per EPA Method 8270C. The analytical methods and respective detection limits must conform to the Regional Board General Laboratory Testing Guidance (3/2021)
for
rnLbudpte32021 Apç1f).
2. All respective analytical methods must be certified by the California Environmental Laboratory Accreditation Program (ELAP). All analytical data must be reported by a California-certified laboratory.
3. Prior to commencing any fieldwork, you must provide Los Angeles Water Board staff (encakoQ ateboardsca. ov) with a minimum of 10 days advance notice so that one of our staff may be present.
4. The contractor who conducts the environmental work as required in this directive shall, at all times, comply with all applicable State laws, rules, regulations, and local ordinances specifically including, but not limited to, environmental,procurement, and safety laws, rules, regulations, and ordinances. The contractor shall obtain the services of a Professional Geologist or Engineer, Civil (PG/PE Civil) to comply with the applicable requirements of the Business and ProfessionsCode, sections 6700 et seq. and/or 7800 et seq. implementing regulations for engineering or geological analysis and interpretation for this case. All documents prepared by the contractor that reflect or rely upon engineering or geologicalinterpretations by the contractor shall be signed and stamped by the PE-Civil/PGindicating her/his responsibility for them, as required by the Business and Professions Code.
5. Any extracted impacted groundwater, soil cuttings, or other investigation derived waste must be transported under manifest and legally disposed off-Site at a recycling facility.
Regulatory Requirement for Electronic Submission of Laboratory Data to the GeoTracker DatabaseChapter 30, Division 3 of Title 23 of California Code of Regulations (CCR) requires persons to ensure electronic submission of laboratory analytical data (i.e., soil or water chemical analysis) and locational data (i.e., location and elevation of groundwater -3-
City of Avalon January 13, 2025
2 Casino Way, Avalonmonitoring wells), to the SWRCB’s GeoTracker database. The regulations and otherbackground information are available at GeoTracker Uploading Requirements
In accordance with the regulations, you must upload the following information to the State GeoTracker database: the report and plan (in PDF format), laboratory analytical data (in electronic deliverable format [EDF]), monitoring event information in GEO_WELL format,an updated site map (GED_MAP) showing the new monitoring well and other samplinglocations, boring logs in PDF (GEO_BORE) to be used to link to well locations, monitoring well latitude and longitude (GEO_XY) survey data, and monitoring well elevation data (GEO_Z). Hard copy paper reports, which have already been electronically uploaded to GeoTracker, are no longer required to be submitted to the Los Angeles Water Board.
If you have any questions regarding this matter, please contact Ms. Erica Kono at(213) 576-6741 or at erica.konperboards.ca.qov, or me at (213) 576-6715 or at [email protected].
Sincerely,
‘Me’x’ng
Digitallysignedby
V V I Wexu1g Tong
T Date:2025.01.1311:59:11 ong -0800
Weixing Tong, Ph.D., P.G., C.HG.
Senior Engineering GeologistSupervisor of Los Angeles Coastal UST UnitCopy by Email:
Tim Smith, Los Angeles Department of Public Works
Miriam Urena, Wayne Perry, Inc.
-4-
December 30, 2024
California Regional Water Quality Control Board
Los Angeles Region
320 West Fourth Street, Suite 200
Los Angeles, California 90013
Attention: Ms. Erica Kono
Subject: SITE ASSESSMENT WORK PLAN
AVALON HARBOR FUEL DOCK
2 CASINO WAYAVALON, CALIFORNIACRWQCB-LA CASE: R-54267A
WPI PROJECT ID: 300241
Dear Ms. Kono:In the October 23, 2024, correspondence the California Regional Water Quality Control Board — Los Angeles (CRWQCB-LA) requested a work plan to delineate the extent of impacted soil andgroundwater beneath the Avalon Harbor Fuel Dock located at 2 Casino Way in Avalon, California(Site). Accordingly, Wayne Perry, Inc. (WPI), on behalf of City of Avalon is submitting this work plan proposing the advancement of five soil borings for the collection of soil and groundwater.SITE DESCRIPTION The Site is located adjacent to the Catalina Casino in Avalon, California. Groundwater was observed at a depth of approximately 1 0 feet during tank removal, however depth to groundwater in the Sitevicinity varies with the tide as it is located on Avalon Bay.
The fueling system at the Site consisted of two 4,000-gallon USTs containing gasoline, one 4,000- gallon UST containing diesel, and one 3,000-gallon UST containing pre-mix fuel with associated underground piping. Main features of the Site are shown on the plot plan provided as Figure 2.
E,,viron,nental Renwdiation, (ons1,’iw/io,i aiki Consulting 828! Commonwealth Avenue. Buena Park. CA 9062! Phone (714) 826-0352 24-hour (800) 883-0352 Fax (714) 523-7880 December 30, 2024
Avalon Harbor Fuel Dock2 Casino Way, Avalon
PROPOSED SCOPE OF WORK
In order to delineate hydrocarbon impacted soil and groundwater beneath the site, WPI proposes the advancement of five soil borings at the locations shown on Figure 2.
Pre-Field and Field Activities
Pre-field activities will include the following:
• Updating the existing WPI Site Safety and Health Plan, as necessary:• Scheduling subcontractors; • Notifying Underground Service Alert; and• Obtaining County of Los Angeles drilling permit.
Prior to any excavation, a utility line survey will be performed to locate all underground utility linesin the vicinity ofthe boring locations. The proposed well locations will be hand cleared to five feet.Details of the drilling and sampling are in Tables I below. Soil samples will be collected at 5-footintervals to the total depth drilled and submitted for chemical analysis.
Table 1. Soil Sampling Procedures
Number Depth Drilling Soil Sample Soil Groundwater Sample Analysis of of Method Interval Sampling Sampling
Borings Boring (feet) Method Method
(feet)
5 20 Geoprobe/Direct Continuous Piston Temporary l’Plld SGC and TPHg by Push soil logging Sampler PVC screened EPA 801 5M. and fhr and submittal collection: casing set at benzene. toluene. for sampling EPA total depth: ethylbcnzene. xylenes. and every 5 feet Method sample hid oxygenates using EPA
5035 collected via Method $260B.
pencil hailer
Sample containers will be labeled with borehole name and sample identification, recorded on the chain-of-custody document, and placed on ice for delivery to a state-certified laboratory. Followingcompletion of sampling, the borings will be backfilled with neat cement grout and capped withconcrete to match surrounding surface.
Soil will be examined in the field for any observable signs of petroleum hydrocarbons including visual stains, hydrocarbon odor, will be screened for hydrocarbon vapors using a photo-ionization detector,and examined for soil classification. Soil will be classified in general accordance with the Unified Soil Classification System. Soil classification and description (including grain size, size grading, December 30, 2024
Avalon Harbor Fuel Dock2 Casino Way, Avalon
subordinate constituents, color, density, and moisture content) and organic vapor readings will be recorded on a field boring/well log. Waste generated from the borings will be placed in 55-gallon drums, and removed from the Site to an appropriate disposal facility.
To avoid cross contamination, all reusable equipment will be broken down prior to and after each use and cleaned, using an approved non-phosphate detergent, double-rinsed in clean water, and allowed to air dry.
All work will be performed under a site-specific WPI Site Safety and Health Plan and the supervisionof a California Professional Geologist.
ReportingA report will be submitted to the CRWQCB-LA that will include:
• Objectives and background;
• Discussion of field procedures;
• Analytical data in tabular form;
• Discussion of extent of soil and groundwater impacts;• Boring logs; and • Copies of the laboratory analytical reports.
Schedule
Field work will be initiated within 60 days after receipt of CRWQCB-LKs approval of the scope of work presented in this work plan and receipt of all necessary permits and access agreements.
December 30, 2024
Avalon Harbor Fuel Dock
2 Casino Way, Avalon
WARRANTY STATEMENT
This report has been prepared by Wayne Perry, Inc. for the exclusive use of the City of Avalon, as it pertains to the Avalon Harbor Fuel Dock located at 2 Casino Way in Avalon, California. Ourprofessional services have been performed using that degree of care and skill ordinarily exercisedunder similar circumstances by other geologists, hydrogeologists, and engineers practicing in this field. No other warranty, express or implied, is made as to the professional advice in this report.
If you have questions or require additional information regarding this work plan, please contact the undersigned at (714) 826-0352.Sincerely,
WAYNE PERRY INC.
Michael Wielenga
California Professional Geologist 7900Attachments: Figure 1, Location Map Figure 2, Plot Plan
NOT TO SCALE
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DATE DRAWN FIGURE NO.
LOCATION MAP
REV. DATE I
AVALON FUEL DOCK
CAD FILE 2 CASINO WAY PROJECT NO.
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PLOT PLAN WITH
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Water Boards
Los Angeles Regional Water Quality Control Board
October 23, 2024
City of Avalon
Attn: Mr. Bob Greenlaw410 Avalon Canyon RoadAvalon, CA 90704
UNDERGROUND STORAGE TANK PROGRAM -WORK PLAN REQUIREMENT AND
REQUEST FOR ADDITIONAL INFORMATION
AVALON HARBOR FUEL DOCK
2 CASINNO WAY, AVALON
(CASE NO. R-54267A, GLOBAL ID NO. TI 000002281 0)
Dear Mr. Greenlaw,
On September 16, 2024, the County of Los Angeles, Department of Public Works (Los Angeles County Public Works) transmitted this case to our agency due to concerns regarding soil and groundwater impacts at the subject site (Site). The California Regional Water Quality Control Board, Los Angeles Region (Los Angeles Water Board), is the public agency with primary responsibility for the protection of ground and surface water quality for all beneficial uses within the Los Angeles and Ventura counties. As such, the Los Angeles Water Board is the lead regulatory agency for overseeing corrective actions (assessment and/or monitoring activities) and cleanup of releases from leakingunderground storage tank (UST) systems at the Site.
Pursuant to Health and Safety Code Section 25296.10, the City of Avalon is required to take corrective actions (i.e. Preliminary Site Assessment, Soil and Water Investigation, Corrective Action Plan Implementation, and Verification Monitoring) to ensure protectionof human health, safety, and the environment. Corrective action requirements are set forth in California Code of Regulations (CCR), Title 23, Chapter 16, Sections 2720through 2727.Site Background The Site is located on Santa Catalina Island and is on the northern edge of Avalon Bay, directly south of the Catalina Casino and east of Saint Catherine Way. The Site contains a fuel dock and a convenience store. The Site is surrounded by a road and undeveloped land to the west, a commercial building to the north, and a surface water body to the east andsouth.
NORMA CAMAcH0, CHAIR SuSANA ARREO0N00, EXECUTiVE OFFICER 320 West 4th Street, Suite 200, Los Anqeies, CA 90013 wwwwaterboards.ca.gov/losariqeles City of Avalon October 23, 2024
2 Casino Way, Avalon
In 2016, a case (Avalon Fuel Dock; Global ID No. Ti 0000009443) was previously referred to the Los Angeles Water Board by the Los Angeles County Public Works. In July 2016, three soil samples were collected along the sides of a 750-gallon UST that was abandoned in-place. The soil samples were collected at a maximum depth of 5 feet below ground surface (bgs). The soil samples indicated maximum concentrations of total petroleum hydrocarbons (TPH) at 100 milligrams per kilogram (mg/kg), diesel range organics (DRO) at 170 mg/kg, and toluene at 0.014 mg/kg. In August 2016, ten additional soil samples werecollected beneath the product piping associated with four other USTs (two 4,000-gallon gasoline USTs, one 4,000-gallon diesel UST, and one 3,000-gallon pre-mixed fuel UST).
The soil samples were collected at a total depth of 4.5 feet bgs. Soil samples indicated a maximum concentration of total petroleum hydrocarbons as diesel (TPHd) at 26 mg/kg.
Other constituents were not detected above their respective reporting limits. Groundwater was not encountered during soil sampling activities. On October 24, 2016, a non-case letterwas issued by the Los Angeles Water Board.
On May 8, 2024, two 4,000-gallon gasoline USTs, one 4,000-gallon diesel UST, and one 3,000-gallon pre-mixed fuel UST were removed from the Site. Upon removal, the USTs appeared to be in good condition. A total of eight soil samples were collected from thesidewalls of the UST excavation pit at approximately 5 feet bgs. Soil samples could not becollected from the bottom of the pit due to its saturated conditions. One groundwater sample was collected from within the pit at approximately 10 feet bgs. A photo-ionization detector (PID) was used to monitor volatile organic compounds (VOCs) in the excavated soil. PID readings did not exceed 50 parts per million (ppm) during excavation activities. Soil and groundwater samples were analyzed for total petroleum hydrocarbons as gasoline (TPHg)and TPHd by Environmental Protection Agency (EPA) Method 8015B; full-scan VOCs, including benzene, toluene, ethylbenzene, total xylenes (collectively BTEX), and methyl tertiary butyl ether (MTBE), by EPA Method 8260B; and lead by HMU-900.The soil samples indicated maximum concentrations of TPHg at 0.047 J mg/kg, TPHd at 27 mg/kg, benzene at 0.00024 J mg/kg, toluene at 0.00214 mg/kg, ethylbenzene at0.00112 mg/kg, total xylenes at 0.00748 mg/kg, tertiary butyl alcohol (TBA) at0.00735 J mg/kg, and ethanol at 0.35 mg/kg. The “J” flag indicates the concentration is anestimation, as the constituent was detected below its reporting limit. MTBE and other fueloxygenates were not detected in soil.
The groundwater sample indicated concentrations of TPHg at 53,800 micrograms per liter (jg/L), TPHd at 5,460 g/L, benzene at 245 pg/L, toluene at 5,690 jg/L, ethylbenzene at 1,890 jg/L, total xylenes at 14,600 g/L, naphthalene at 555 pg/L, and lead at 57 J pg/L.
MTBE and other fuel oxygenates were not detected in groundwater.
Work Plan Requirement (per CCR, Title 23, Chapter 16, §2724) Recent soil and groundwater data indicate that the Site has been impacted with petroleum constituents and the extent of the impacts has not been fully delineated. You are required to submit a work plan proposing the advancement of soil borings and the collection of soil and groundwater samples to delineate the horizontal and vertical extent of constituents -2-
City of Avalon October 23, 2024
2 Casino Way, Avalon
beneath the Site. The work plan is due to the Los Angeles Water Board byDecember 30, 2024.Req uest for Additional Information To facilitate our review, the City of Avalon is required to provide the following information regarding the Site by December 30, 2024:
1. Facility contact person’s name, phone number, and email address (if any);
2. Facility mailing address;3. Contaminant release information (e.g., copy of Site Assessment Report);
4. A list of all historical and existing USTs (including tank size and contents, dates of use, dates of removal) and a figure showing their locations;
5. UST removal and/or repair information (including tank size and contents, removal and/or repair date);
6. Tank disposal documentation and soil disposal documentation (if any);7. Copies of all previous site assessment and/or remediation report(s) (if any), except for the following documents we have already received:
• “UST Removal and Closure Report” dated June 6, 2024, prepared by Wayne Perry, Inc. (WPI).
8. Reports of all previous soil and groundwater sample analytical results (if any);
9. Name, telephone number, and email address of your environmental consultant (if any);
10. Copies of all correspondence regarding environmental assessment for the subject site;
11. Current site use;12. Property Owner Information: Pursuant to the California Health and Safety Code Section 25296.20(a) and Division 7 of the Porter Cologne Water Quality Control Act under AB 681, the Los Angeles Water Board is required to notify all current fee titleholders for the Site or sites impacted by releases from USTs prior to considering corrective action and cleanup or case closure. If corrective action data from the Site indicates that release(s) from the UST systems have impacted offsite property, weare also required to notify offsite property owners. Therefore, you are required toprovide to the Los Angeles Water Board the name, mailing address, and phonenumber for any record fee title holders for the Site and any offsite property(ies)impacted by releases from the Site, together with a copy of county record of current -3-
City of Avalon October 23, 2024
2 Casino Way, Avalon
ownership (grant trust deed), available from the County Recorder’s Office, for each property affected. Or as an alternative, you can complete the Los Angeles WaterBoard’s “Certification Declaration for Compliance with Fee Title Holder NotificationRequirements,” for each site available at:
ttps://www.wa boa rds.ca oyLiosarekpjjjpations_forms!forrns/ust/AB681C ficaticnForm022019.df.
Copies of future technical reports shall also be sent directly to the property owner of theSite and to any other property owner(s) impacted by contamination from the Site. You are also responsible for providing new contact information if the property owner(s) changes.
The new owner shall comply with the requirement stated above.The City of Avalon is required to submit the above requested information, including the “Certification of Declaration” form or copy of the grant trust deed, to the Los Angeles Water Board by December 30, 2024.
General Requirements
The contractor who conducts the environmental work as required in this directive shall, at all times, comply with all applicable State laws, rules, regulations, and local ordinancesspecifically including, but not limited to, environmental, procurement, and safety laws, rules, regulations, and ordinances. The contractor shall obtain the services of a Professional Geologist or Engineer, Civil (PG/PE-Civil) to comply with the applicable requirements of the Business and Professions Code, sections 6700 et seq. and/or 7800 et seq. implementing regulations for engineering or geological analysis and interpretation for this case. All documents prepared by the contractor that reflect or rely upon engineering or geological interpretations by the contractor shall be signed and stamped by the PG/PE-Civil indicating her/his responsibility for them, as required by the Business and Professions Code.
Regulatory Requirement for Electronic Submission of Laboratory Data to the State GeoTracker Internet DatabaseOn September 30, 2004, the State Water Resources Control Board (State Water Board)adopted the resolution to revise regulations in Chapter 30, Division 3 of Title 23 of CCR, which requires persons to ensure electronic submission of laboratory analytical data (i.e., soil or water chemical analysis) and locational data (i.e., location and elevation of groundwater monitoring wells) via the Internet to the State Water Board’s GeoTrackerdatabase. The regulations and other background information are available on the gackeyaterboard sgov.
In accordance with the regulations, you must upload the following information to the State Water Board’s GeoTracker database: reports and plans (in PDF format), laboratory analytical data (in electronic deliverable format [EDF]), monitoring event information inGEO_WELL format, an updated site map (GEO_MAP) showing any new monitoring well locations and other sampling locations, boring logs in PDF (GEO_BORE) to be used tolink to well locations, monitoring well latitude and longitude (GEO_XY) survey data, and -4-
City of Avalon October 23, 2024
2 Casino Way, Avalon
monitoring well elevation data (GEO_Z). Hard copy paper reports that have already been electronically uploaded to GeoTracker are no longer required to be submitted to the Los Angeles Water Board.
If you have any questions regarding this matter, please contact Ms. Erica Kono at (213) 576-6741 or at or me at (213) 576-6715 or atSincerely, W Digitally signed by lXlfl9 WeixingTong
T Date: 2024.10.23 ong 14:50:16-0700
Weixing Tong, Ph.D., P.G., P.H.G.
Senior Engineering Geologist
Underground Tanks/Los Angeles Coastal Unit SupervisorEnclOsure:
AB 681 Certification Declaration for Compliance with Fee Title Holder Notification Requirements form
Copy by Email:
Tim Smith, Los Angeles County Public Works
Magdeline Hutton, Los Angeles County Public WorksMiriam Urena, Wayne Perry, Inc. -5-
CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM:__________
ORIGINATING DEP: Administration CITY MANAGER: 4)L(
PREPARED BY: Jocelyn Francis, Assistant City Manager
SUBJECT: Agreement with Los Angeles County for Participation in Los Angeles Region Imagery Acquisition Consortium Program
and Geographic Information Systems Services
RECOMMENDED ACTION(S): Authorize the City Manager to execute a 3-year agreement with the County of Los Angeles for the City of Avalon’s participation in the Los Angeles Region Imagery Acquisition Consortium Program and assistance modernizing the City’s Geographic Information Systems environment in an amount not-to-exceed $115,000.
REPORT SUMMARY: The City of Avalon currently has a Geographic Information Systems (GIS) program managed with an outdated agreement. At the end of 2024, Citystaff met with Los Angeles County Internal Services Department GIS staff to inquire aboutservices available to contract cities. City staff from Public Works, Planning, Information Technology, and the City Manager’s Office met with the County team to discuss services.
The County shared information about the Los Angeles Region Imagery Acquisition Consortium Program (LARIAC) which provides high-resolution aerial orthogonal and oblique imagery (including building outlines and digital terrain), immediate access toConnect Explorer GIS viewer (including parcel data, streets, and addresses), licenses forCity staff, and training. The high-resolution imagery is updated every (3) years (lastcollected in 2023). LARIAC participants include over 30 County departments, and 40additional partner organizations including municipalities, other public agencies, and academic institutions.
In addition, Los Angeles County can provide services related to modernizing the City’s GIS system. This support includes initial analysis, evaluation, data migration, and projectmanagement for implementing a new software program. The software program and all associated data will be owned by the City of Avalon. If needed, City staff will return to City Council for the procurement of the new software program upon initial analysis of Los Angeles County staff.
Both participation in LARIAC and a modern GIS program could be invaluable tools forPlanning, Building, Public Works, Public Safety, and Administration in helping staff map, analyze, and understand spatial data. Updating the City’s GIS can improve managementof urban planning, emergency response, transportation and traffic, parcel data,environmental data, or infrastructure maintenance. In addition, with key stakeholders participating in LARIAC the City of Avalon would benefit tremendously from sharing mapping and aerial data as would our public safety partners.
The LARIAC program is a one of a kind consortium with a variety of local participants, including those specific to the island including Los Angeles County Departments (ex.
Sheriff, Fire, Planning), Santa Catalina Island Conservancy, and Southern California Edison. In addition, the experience the County staff have with GIS services is unique toLA County layers, property data, and experience providing many of those services already on Santa Catalina Island.
Therefore, to ensure compatibility with existing data sets, to take advantage of LA County experience, and to piggyback off aerial data collection efforts already occurring on SantaCatalina Island, it is recommended to enter into an agreement with Los Angeles County to participate in LARIAC and for services related to GIS modernization utilizing AMC 3-4- .11(c) Economic Efficiency. LARIAC is a consortium of existing multi-jurisdictional agreements that enable local governments to efficiently and cost-effectively acquire high definition aerial data. Due to the fact the County is already collecting and mapping data for the unincorporated portions of the Island through the LARIAC program, the City can expect gained economic efficiency by awarding this agreement.
FISCAL IMPACTS: There is currently $30,000 in the FY2024/25 general operatingbudget for services related to GIS which will cover year one of the agreement and software licensing.
GOAL ALIGNMENT: Improved business processes.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City willcontinue to have an outdated GIS program.
FOLLOW UP ACTION: Execute an agreement with Los Angeles County.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS:
. Los Angeles County Estimate 05-25
Prepared for:
Jocelyn Francis
Assistant City Manager
City of Avalon(310) 510-0220 x 124
[email protected]
County of Los Angeles
INTERNAL SERVICES DEPARTMENT
ESTIMATE
“Speed, Reliability,
02/11/2025
Value”
Prepared by:
Shannon Julius
Internal Services Department - eGIS
(562) 955-4003
[email protected]
REQUEST FOR ESTIMATE
CITY OF AVALON
GEOGRPHIC INFORMATION SYSTEMS (GIS) MODERNIZATION
ESTIMATE # 05-25 (IDD-GIS)
ESTIMATED TOTAL 3-YEAR COST: $ 112,639
• Year 1 (FY 24-25 partial)• Year 2 (FY 25-26)• Year 3 (FY 26-27) Scope of Work
$24,742$45,565$42,332
This estimate is provided in response to the City of Avalon’s (“City”) request for Los Angeles County Internal Services Department (“ISD”) assistance to modernize the City’s Geographic Information Systems (GIS) environment. This effort will leverage existing County data and infrastructure resources, such as authoritative parcel boundaries, County Public Works-managed infrastructure, aerial imagery, 3D elevation data, demographic estimates, and more.
This project will involve an analysis and modernization of the City’s existing MapGuide GIS platform. The ISD team will identify essential data and workflows in the existing platform and migrate these to a new GIS environment. As needed, ISD will develop new web and mobile applications to meet essential business needs.
Application development is expected to use commercially-off-the-shelf (COTS) tools, rather than custom development.The ISD team will analyze current and planned patterns of GIS usage and recommend a GIS licensing strategy. Any recommended licenses will be purchased and maintained independently by the City.
This project will involve the City joining the Los Angeles Region Aerial Imagery Acquisition Consortium (LARIAC), which produces high-resolution aerial imagery and derived products on three-year cycles at a cost shared by all consortium members. Please see attached LARIAC7 Product Guide.
Lastly, this project will involve comprehensive onboarding and training of City staff in the new GIS environment. Onboarding will include authorizing licenses and ensuring staff have access to data and application resources. Training support will involve the development of written and recorded training materials and hosting virtual and/or in-person training sessions. A GIS Project Manager will be assigned and host regular meetings to determine City staff training needs on a regular basis.
To achieve these goals, a phased multi-year approach is recommended to balance priorities, cost, and City and County staff time. After an initial period lasting approximately 18 months, ISD support will shift to a general support phase through the end of FY 26-27. Please see below for a list of target goals by year.
YEAR 1
FY 24-25 (Partial year through 613012025)
Total: $ 24,742
Task 1.1 — Join LARIAC Program
LARIAC7 Full Payment
Total: $ 17,092
• License high-resolution aerial orthogonal and oblique imagery, and derived products including building outlines, digital terrain, and more. • Access web-based Connect Explorer GIS viewer, which provides LARIAC data in an easy-to use format, along with County data including parcels,streets, and addresses. • See attached LARIAC7 product guide for more details
Task 1.2 — Onboard Staff to LARIAC Resources
Up to 20 hours ISD Staff at $255 per hour
Total: $ 5,100
• Configure City environment for Web-based LARIAC data viewer; Identify City admins and staff users; Provision licenses.
• Connect City staff with existing training; Provide introductory documentation. • Host up tc 2 virtual training sessions or up to 1 inperson training sessiori • Provide ad-hoc support as needed.
Task 1.3 — Preliminary Data Analysis and Migration
Up to 10 hours ISD Staff at $255 pr hour
Total: $ 2,550
• Identify and extract essential data from MapGuide.• If feasible, upload City-specific data to the Web-based LARIAC data viewer environment for staff use.
YEAR 2
FY 25-26 (711/2025 - 6I30I2026)
Total: $ 45,565
Task 2.1 — LARIAC Program Membership
One-half LARIAC8 program cost ($18,200) per year for two years Total: $9,100
• License high-resolution aerial orthogonal and oblique imagery, and derived products including building outlines, digital terrain, and more. • Access web-based Connect Explorer GIS viewer, which provides LARIAC data in an easy-to use format, along with County data including parcels, streets, and addresses.
• Participate in LARIAC User Group meetings and training opportunities.
Task 2.2 — GIS Infrastructure Evaluation
Up to 15 hours ISD Staff at $255 per hour
Total: $ 3,825
• Review the City’s GIS data, users, security, and workflow needs.• Interview technology and business leads to understand operational context and technology resources.
• Develop a written document describing recommended license types and infrastructure considering desktop, cloud, database, and server options. • Review with City team and get approval before moving on to subsequent tasks.
Task 2.3 — Infrastructure Configuration and Data Migration Up to 40 hours ISD Staff at $255 per hour
Total: $ 10,200
• Following recommendation document from Task 2.2, authorize, configure, and install infrastructure elements.
• Issue licenses and assist staff with access.
• Bring existing data into now environment. Develop new data schemas or models where needed.
Task 2.4 — Preliminary Application Development
Up to 40 hours ISD Staff at $255 per hour
Total: $ 10g200
• Create web or mobile applications in the new environment that address highpriority, essential City GIS workflows.• Exact number and purpose of applications to be decided through discussions and City input. The emphasis this year will be to develop the highest-priorityapplications first. One approach may be one application each (total of three applications) for:
• Public Works• Planning• City Administration (City Manager Team) Task 2.5 — GIS Project Management and Training
Up to 48 hours ISD Staff at $255 per hour
Total: $ 12,240
• Monthly meetings with GIS Project Manager to review progress on deliverables and ensure schedule and budget are met for this year’s tasks. • Creating project plans, identifying resources, and other project management support for projects as needed.
• Host virtual or in-person training sessions as identified by City staff and GIS project manager.
• Regular communication and training resources; Liaison with City staff.
YEAR 3
FY 26-27 (71112026 — 613012027)
Total Cost: $ 42,332
Task 3.1 — LARIAC Program Membership
One-half LARIAC8 program cost ($18,200) per year for two years Total: $ 9,100
• License high-resolution aerial orthogonal and oblique imagery, and derived products including building outlines, digital terrain, and more. • Access web-based Connect Explorer GIS viewer, which provides LARIAC data in an easy-to use format, along with County data including parcels,streets, and addresses. • Participate in LARIAC User Group meetings and training opportunities.
Task 3.2 — GIS Project Managernnt
Up to 24 hours ISO Staff at $26 per haur
Total: $ 6,432
• Quarterly GIS Project Manager meetings to evaluate GIS data, analysis, application development, or training needs.
• Creating project plans, identifying resources, and other project management support for projects as needed.
Task 3.3 — GIS Support
Up to 100 hours ISD Staff at $268 per hour
Total: $ 26,800
• Ad-hoc tech and development support hours up to 100 hours total per year.• Virtual or in-person training sessions as identified by City staff and GIS project manager.
Clarifications:
• All work is to be conducted during normal business hours.• County-owned data will be provided to the City at no additional cost.• The budgeted labor hours represent “not to exceed” values; the team will only charge for hours required to complete the tasks.
• At any time, the City may opt for additional service hours above those estimated here; these will be billed at the current ISD Rate Handbook rate.
Any additional hours may be authorized by written approval over email. • LARIAC membership fees will be invoiced separately from labor hours.• A signature on this document constitutes agreement to the LARIAC Participant Agreement.
• Any recommended GIS licenses will be purchased and maintained independently by the City.
• Estimate assumes deliverables will consist of primarily configured commercial-off-the-shelf (COTS) software, with the potential for limited custom development.
• Estimate assumes any required field data collection or remote data creation or editing (i.e. updating water main database) will be completed by City staff; ISD staff may configure, assist, train, and advise on data creation, collection, and/or editing methods.
• If on-site travel is determined necessary to meet project goals, the City must provide travel vouchers and/or reimburse county staff for travel-related costsincurred in the course of providing services related to this Estimate.
This estimate is valid for fiscal year 24-25 and may require revision due to changes in the scope of work, labor rates, materials, equipment rates, permitting fees,licensing, annual cost of living and escalation adjustments. because this was prepared wiThoi.r a t üf comp!nte plans or specficatbns, this estimate shag not be usec s a orial bid. in the event that project bid documents re prepared or a solicitationwW lake pIece, SQ would like the opportunity to attendany biddar conferences and submit a bid at the apprcprte time as other contractors or vendors.
Send your funded service request to egisisd.lacounty.gov.
Please refer any future correspondence to Estimate # 05-24.If you have any questions or need clarification, please do not hesitate to contact Shannon Julius at [email protected] or (562) 955-4003. Include [email protected] on your correspondence for urgent matters.Thank you for giving ISD the opportunity to be your trusted partner and provider of choice!
Please sign and date below to authorize and approve the City of Avalon — Geographic Information Systems (GIS) Modernization Project as detailed in this estimate.
CITY OF AVALON
Print Name
Signature
Date
LARIAC
—
Product Guide
For the Los Angeles Region Imagery
Acquisition Consortium (LARIAC) Program
OS ANG(L(S LGIOH
LAR’C
I 11 )r
LARIAC 7-2023 Product Teani
Orihophotography Data Acquisition
& Data Production provlaed by: EagleView
Oblique Imagery Data and Viewer providea by: Eaglevlew
Building Representation Data provIded by: EagleView
Digital Terrain Data provided by: EagleVlew.
Quality Assurance, Quality Control and Deliverables provided by: Dewberry Engineers Inc.
TLE OF CONTENTS
LAIUAC BACKCROUND ANt) OVER VE’V .4
PROJECT
Overview
DELIVERABLES
of Data Acciuiston Process-- LARLAC 7.4
5 Digital Orthophotography, LiDAR, and Oblique imagery and Viewers 5Data Formats 5 Primary Imagery Deliverable 1 —4 -Band Multispectral Imagery (RGBNIR) 6 Primary Imagery Deliverable 2 -Color Oblique Aerial Digital Imagery 7 Deliverable 4 — Building Representations (Rooflines) 7Other Deliverables 8 DELIVERABLE REVIEW & ACCEPTANCE CRITERIA 9
Coordinate System and Datum for LARIAC 7 Project Data 9 Horizontal and Vertical Positional Accuracy 9
OPERATING OPTIONS 10
ACCESSING OR LOADING DATA 10
Orthophotography — Delivery Blocks, Tile Counts, Tile Grid and Tile Naming Convention 10 CREDITS -HOW TO CITE THE LARIAC 7 DATA 13
LARIAC 7 PROJECT HELP 13
CITATIONS 14
LARAC BAcKcRouNU AND OVERVIEW
Pease see the original LARAC Prodict Gde for cornplcte background and overview information on the LARiAC6 progran. The original LARIAC Project Guide (2006) provides information on the first iteration of the project, orthophotography, digital terrain datasets and oblique aerial digital imagery.
This document, along with reports, documents, presentations, and other information, can be found online on the LARIAC Program Web Site:
https://lariac-lacounty.hub.arcgis.com/
Overview of Data Acquisition Process — LARIAC 7
EagleView acquired ortho and oblique imagery for the LARIAC 7 Project. Aerial photography data were collected and processed by EagleView for all LARIAC 7 project areas. The collected nadir image chips were post processed by EagleView.
To provide the proper geodetic controls for the production of the digital ortho imagery, a combination of existing GPS ground control points and GPS/IMU were employed during the image capture. Existing digital terrain model (DTM) data from LARIAC6 was provided by Los Angeles County and used in the production of the digital ortho imagery. EagleView accomplished aerial triangulation (ATsolution) of the photo set using automatic analytical aerial triangulation (AAAT) procedures in a softcopy environment and the resulting external orientations.
EagleView processed the imagery, completed the orthorectification and produced4-band (RGBNIR), 32-bit (8-bit per channel) digital orthophotos at 4-inch and 9- inch pixel resolution for respective project areas with no overlap between areas.
The 4-inch (0.32’ final pixel size) and 9-inch (0.8’ final pixel size) areas were color balanced independently. The ground resolution of the ortho photography will be approximately nominal 10 cm GSD (Ground Sample Distance) and nominal 28cm GSD. All products from the LARIAC 7 Project underwent rigorous qualityassurance and quality control (QA/QC) procedures by Dewberry Engineers Inc. (hereafter referred to as Dewberry) as an independent QAIQC firm.
All project data were established and produced in the NAD 83 (2011) California State Plane Coordinate System (1983, Zone V). The 4-inch and 9-inch pixel resolution orthophotos were delivered by EagleView to Dewberry for eventual distribution to the LARIAC 7 participants. Oblique imagery was delivered by EagleView to Dewberry for eventual distribution to the LARIAC 7 participants. 4 PROJECT DELIVERABLES
The LARIAC 7 Project consists of digital imagery and elevation products in various delivery formats. The LARIAC 7 Technical Advisory Group (TAG) madeevery effort to consider and include as many products and delivery formats as possible. While not every format is included, the final products can be converted to other formats, if necessary. The following is a description of all LARIAC 7 Project Deliverables:
Digital Orthophotography, LiDAR, and Oblique Imagery and Viewers
After the quality assurance team received, reviewed and accepted all of the ortho products delivered by EagleView for each delivery area, the data was finalized and copied to hard drives or placed onto cloud storage for delivery to Los Angeles County and the LARIAC 7 participants.
The full countywide delivery of oblique imagery, software and support data was also delivered to Dewberry by EagleView for creation of the Spatially-Limited Dataset (SLDS) deliveries of all project data products to the various LARIAC 7participants. The final SLDS datasets were delivered on external hard drives (provided through the LARIAC 7 contract).
The delivery extents for each SLDS are defined by two shapefiles developed and provided by Los Angeles County in consultation with each SLDS participant. One shapefile defines the 4-inch (urban) and 9-Inch (national forests) ortho imagerydelivery boundaries, and the other defines the EagleView (oblique product)delivery boundary.
LARIAC 7 Project Deliverables (each described below):
There are three (3) main products (now called deliverables) for LARIAC 7 and over twelve (12) data formats. The main products include:
Deliverable I -Color Orthogonal Imagery, 4” resolution (urban areas) and 9” resolution (national forests)
Deliverable 2 -Color Oblique Aerial Digital Imagery (with web application and other integration software).
Deliverable 3 — Building Outlines — Esri File Geodatabase containing building footprints collected from the 4” and 9” imagery.
Data FormatsEagleView translated or transferred the digital data from the original system format to the final and required output format. EagleView provided their oblique 5 imagery iibrary, software, and supportnq materials. Their obque imagery format is a proprietary JPEG format.
The formats listed below for the isred deliverables are for graphic display only and do not contain any written reports.
Delivery Product Description
Deliverable is divided into individual blocks to support the AT processing. Each block contains the AT report
Aerial Triangulation Reports consisting of control information and residuals The Building geodatabase contains individual building
Building Geodatabase footprints derived from the LARIAC 7 imagery.
DTM files in XYZ format are provided for areas where
the surface model required improvement for ortho
DTM product generation.
4-Band (RGBNIR) image files for each tile at either 4-
GeoTiffs inch or 9-inch resolution.
4-Band compressed (10:1) JPEG 2000 files for each
JPEG2000 tile
Standard Countywide or SLDS participant mosaics in
multiple formats (ECW, JPEG2000, and MrSID).
SLDS participants also receive a mosaic in ESRI
Mosaics Raster Dataset format.Metadata FGDC compliant XML metadata for the project.
Shapefiles Shapefiles for the Tile Index and Seamlines
Each participant received all delivery formats for the area agreed upon prior to joining the LARIAC 7 project (provided in their letter of support with the County).
For most entities this is their jurisdiction or coverage area along with a buffer area. All products are delivered in the State Plane Coordinate System, NAD83 (2011), California, Zone V, U.S. Survey Feet (0405).
Primary Imagery Deliverable 1 —4 - Band Multispectral
Imagery (RGBNIR)
1. 4-inch pixel resolution natural color ortho imagery coverage of the urban project area at a 1” 100’ map scale.
2. 9-inch pixel resolution ortho imagery coverage of the national forest areas (Area 2) at a 1” = 200’ map scale.
3. Imagery to be delivered as GeoTIFF files (uncompressed) corresponding to each ortho tile in the supplied tile grid.
4. Other data formats to be provided include ECW, JPEG2000, and ESRI Raster Dataset Format.
6 Primary Imagery Dehverabe 2 - Cokr Oque Ara Digital
magery
1. 4,276 Sectors of Community 4Way Images covering 4083 square mHes of the County (all areas plus some buffer). This includes 963 Sectors of Community 4-Way Images covering Area 2 (national forests).
2. 3,309 Sectors of Neighborhood 4-Way Images covering Area 1.
3. 139 Sectors of Neighborhood 4-Way Images covering Area 3 (Santa Catalina Island).
4. 16 Sectors of Neighborhood 8-Way Images covering downtown areas.
5. Shapefiles representing the oblique footprint of each image trapezoid in California State Plane Coordinate System, Zone V, NAD 83 (2011), and U.S. Survey Feet.
6. Oblique imagery is a proprietary image trailer tacked onto industry standard image format. May be exported to a number of formats. County DTM with up to 2m spacing will be included in image trailer.
Deliverable 4 — Building Representations (Rooflines)
1. ArcGIS Shapefile and File geodatabase including building rooflines representing all buildings as of date of orthogonal imagery capture,including attributes identifying source of change (modification, new construction, replacement) and links to prior building IDs.
2. ArcGlS shapefile of all buildings that have been updated since 201 7, to support change analysis and detection, including attributes identifyingsource of change (demolition, modification, new construction, replacement) and links to current building IDs.
7 Map f LARAC 7 Project Araa
Legend
,ro 4 n
EEEEJ Project Areas and Tile Grid
Area I — urban, Area 2— national forests
Other Deliverables
1. Federal Geographic Data Committee (FGDC) compliant metadata.
2. Geodetic control network for ground control points used for AT solution.
3. Countywide Oblique Warehouse Only -Oblique imagery software from EagleView
• Electronic Field Study (EFS)• Configuration Editor• Change Analysis • ArcGIS Extension• Network Image Warehouse (N 1W)
rourdTy
Los Angeles Region -
Imagery Acquisition Consortium LA RI
8 DEUVERABLE REvEw & ACcEPTANcE CRITERIA
All products from the LARIAC 7 Project undenNent rigorous quality assurance and quality control (QAJQC) procedures. The same Acceptance Criteria was used for LARIAC 7 as LARIAC 6. For detailed information regarding the acceptance criteria the Quality Plan has been supplied to the LARIAC program for distributionas necessary.
Coordinate System and Datum for LARIAC 7 Project Data
All LARIAC 7 Project deliverables (except oblique aerial digital imagery) are projected in the State Plane Coordinate System, NAD 83 (2011), CA Zone V, US Survey Feet (0405).Horizontal and Vertical Positional Accuracy Horizontal Accuracy — For Orthophotos
LARIAC 7’s 4” digital orthophotos were tested in accordance with the 4 inch GSDAcceptance Criteria. The “georeferenced ground positions of higher accuracy,” referred to generically as “QAIQC checkpoints,” were provided from the firstLARIAC project and from other data points collected by the vendors. TheNational Standard for Spatial Data Accuracy (NSSDA) absolute accuracy statistic (Accuracyr) is computed as RMSEr x 1 .7308 in order to report the testedhorizontal accuracy at the 95% confidence level as required by FGDC Geospatial Positioning Accuracy Standards, Part 3: NSSDA. The 4” digital orthophotos were tested with 0.91 feet horizontal accuracy at 95% confidence level. Class 1 (1foot accuracy) for Area 1 and 3 and class 2 (2 foot accuracy) are the same standards as LARIAC.
Horizontal and Vertical Positional Accuracy - For Oblique Imagery The georeferenced ground positions of higher accuracy, referred to generically as QA/QC checkpoints, were provided by LARIAC 7 from multiple sources. Most checkpoints were X’s painted on asphalt, accurately surveyed as control points, and used as target points by photogrammetric firms for aerial triangulation.
Because these checkpoints are accurate, well defined and photo-identifiable on the airborne oblique imagery, Dewberry measured the x-, y- and z-coordinates onthese checkpoints on each of the 4-view EagleView images, where visible, to compute errors in Eastings (ax), errors in Northings (Ay), and errors in elevations (Az). For each checkpoint, Dewberry also averaged the Eastings, Northings and elevations for all views that were visible; for many, the average resulted from fourviews, but some points were obscured by buildings, trees, cars, etc., so theaverage resulted from the mean of three, two, and (in a few cases) only one view.
When coordinates were averaged from north-view, south-view, east-view, and west-view images, the averaged coordinates were normally more accurate than 9 oordnafes from ndiviriul ie’t.’s as suminarzEi .‘ith he foliownj a’;curecy sIaten)ens:
Accura;;v of r earlydefwied EIrveyec t>Lur9ets on Eag!eView 4-vie’’i images with coordinates averaged from all views in which targets were visible and cou!d he measured: All-view averaged coordinates tested 3.25 ft horizontal accuracy at 95% confidence level. All-view averaged coordinates tested 1.18 ftvertical accuracy at 95% confidence level.
These results are well within contract specifications for oblique imagery for the LARIAC 7 Project.
OPEiTING OPTIoNs
The LARIAC 7 Project is mainly about data products but it is important to note how the data can be viewed and what special software is included or can be used. LARIAC 7 product deliverable Index Files (identifying the tile grid, etc.) areprovided in ESRI shapefile format.
Other LARIAC 7 Project reports (Horizontal and Vertical Accuracy, Aerial Triangulation, Geodetic Control, etc.) are provided in Adobe Acrobat (.PDF) file format. Other miscellaneous data tables can be opened and used with a word processing and/or spreadsheet application like Microsoft Word or Microsoft Excel.
EagleView deliverables may also be accessed through EagleView Online and the Connect (ConnectExplorer) platform. This is the preferred way to view and use the oblique data collected by EagleView. Orthoimagery deliverables have been supplied via a Dewberry cloud portal or hard drive as required for each participant. All countywide and SLDS participant deliverables will be accessible on the cloud storage solution for 3 years following delivery.
ACCESSING OR LOADING DATA
The following section refers to accessing and/or loading the LARIAC 7 data. Most agencies are receiving their data via a cloud solution or on an external hard drive (provided this time through the LARIAC 7 Project).
Orthophotography — Delivery Blocks, Tile Counts, Tile Grid and Tile Naming Convention
Tile Counts:
10 12.701 tiles for 4’ ortho a1 dtal terar datasets (Area 1 urban) 1 080 tiles for 9’ orthos an diterrn dat’ss (Area 2 — riaUon forests)
Tile Grid:
Tiles for Area I and Area 3 — 0.25 sq. mile area, 0.5 mile length and width (2,640 ft. x 2,640 ft.)
Tiles for Area 2 — 1 sq. mile area, 1 mile length and width (5,280 ft. x 5,280 ft.) — Some tiles (along the edge of Area 1) are 2,640 ft. x 2,640ft.
Tile Naming Convention — Tile ID:
In order to be able to work with the tiles, it is necessary to have a unique namingconvention that uses a deterministic process to identify both the geographic location, as well as the type of data product and format. Each 9-Inch tile name is a 12-character ID. The first three characters, “L6_”, distinguish between LARIACand LARIAC 7 data files. The latter part of the name consists of a truncated Xcoordinate (first 4 digits) in thousands of feet, separated with an underscore froma truncated Y coordinate in thousands (last 4 digits). Each 4-inch tile name hasan additional a, b, c, or d quadrant designation.
Examples: 9-inch tile 4-inch tile
Map of tile grids (ortho delivery products).
11 L6 6550 1762
,.$ -—— --.-—-
I Truncaec X Truncated Y
[ Coordinate Cooidinate
L635O1 72a 1’
_____.___.___l._____1
rue location -- Additional a. h, c, or d
same 9 quadrant designationcharacters as or 4-inch tile i-toot tile
All of the core orthophotography files are identified by this tile number and a file extension that designates the files data file format (e.g. .tif or .jp2). For all of theother LARIAC 7 data products, the 12-character ID is followed by a product type identifier (suffix).
NOTE:
Following each file name is the file extension. The extension begins with a periodand then a 3 (or more) character string designation of the data format (e.g., .dwg, .dgn, .shp, .xyz, etc.).
Sample 4-inch tiles with the LARIA C4 tile grid and naming conventio,i 12 CREoTs - HOW TO CTE THE LARAC 7 DATA
The mapping products provided under he LARiAC 7 Project are an imoortant operative component 10 all consortium pa icpants and have significant value.This value must be protected by all consortium participants and parties affiliated with LARIAC 7 and its contractors. When using the LARIAC 7 datasets for publicviewing, media or third party applications, Los Angeles County strongly encourages its LARIAC 7 participants to properly cite the source of the data.
NOTE: Third party or “derived datasets” created from the LARIAC 7 data are not subject to citation requirements.
Citing EagleView (Pictometry International Corp.) ortho products:
When citing the source of the Pictometry data please use one of the two following options:
Option 1 -Short Version:
This is a proprietary dataset provided courtesy of the Los Angeles Region Imagery Acquisition Consortium (LAR-IAC) and Pictometry International Corp.
Option 2 -Long Version:
This is a proprietary dataset provided courtesy of the Los Angeles Region Imagery Acquisition Consortium (LAR-IAC) and Pictometry International Corp. Use other than what is allowable under license or by written permission from Pictometry International Corp. will be consideredunauthorized and may be punishable by law. Permission for external usemay be given with written permission from Pictometry International Corp.
Citing EagleView (Pictometry International Corp.) imagery (oblique products):
When citing the Pictometry oblique imagery please use the following:
“© Copyright (year), Pictometry International Corp.”
Let Us Know How You Are Using the LARIAC 7 DataWe want to know about your successes! The LARIAC 7 Technical Advisory Group will be documenting how people are using the LARIAC 7 products. This valuable information will help Los Angeles County present a strong business caseto decision-makers for maintaining the County’s geographic information systems (GIS) infrastructure. Please send a few sentences about how you are using thedata to qistpIanninq.lacounty.qov.
LARIAC 7 PRoJEcT HELP
For help using the LARIAC 7 data products, users can contact:
13 County of Los Anges nterna erces uepart!nent
Project Director - Dr. Steven Sinberg (County GiO)
SSteinbergjdiacoy(562) 955-375t
Los Angeles County Department of Regional Planning — GiS Section Nick Franchino, GIS Manager
gis(planning.lacounty.qov
(213) 893-0881
LARIAC-7 Project information can be found at the project Web site:https://lariac-lacounty.hub.arcqis.com/ Data Quality Assurance and Distribution
by: Dewberry Engineers Inc.
8401 Arlington Blvd
Fairfax, VA 22031 -4666
(813)421-8641
jmark(ädewberry.com
Data Acquisition, Ortho Production, and Oblique Data Production by: EagleView International Corp.
25 Methodist Hill Drive
Rochester, NY 14623
(585) 444-2517
michael .borrelli(äeaqleview.com
CITATIONS
All citations should reference the original LARIAC Product Guide (pages 34 and 35).
Readme
This document is provided to you through the Los Angeles Region Imagery Acquisition Consortium 7 (LARIAC 7) Project. It provides you with the list of EagleView software you have received with the oblique imagery delivery, as well as the LARIAC 7 Project contact information.
14 CITY OF AVALON CITY COUNCIL
MEETING DATE: February 18, 2025 AGENDA ITEM: 11
ORIGINATING DEP: Finance CITY MANAGER: ______ PREPARED BY: Matthew Baker, Finance Director SUBJECT: Annual Financial Report for the Fiscal Year Ended June 30, 2024 RECOMMENDED ACTION(S): Receive and file the annual financial report for the fiscal year ended June 30, 2024.
REPORT SUMMARY: The annual financial report is the set of basic government financial statements that comply with the accounting requirements established by the Governmental Accounting Standards Board (GASB). The City’s financial statements were audited by Davis Farr LLP, an independent public accounting firm of licensed certified public accountants. The objective of the independent audit was to obtain reasonable assurance that the financialstatements of the City are free of material misstatement. The independent audit involvedexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. For the fiscal year ended June 30, 2024, the independent auditor issued an unmodified opinion that the financialstatements are presented fairly, in all material respects, in accordance with generally accepted accounting principles (GAAP).
The annual financial statements are presented in three sections: introductory, financial, and statistical. The introductory section includes the letter of transmittal and organizational chart. The financial section includes the Independent Auditor’s Report, Management’s Discussion and Analysis (MD&A), the basic financial statements, Required Supplementary Information, and other information. The MD&A contains a narrative introduction, overview, and analysis of the City’s financial statements. It should be read in conjunction with the letter of transmittal. The statistical section includes selected financial and demographic information, generally presentedon a multi-year basis. In contrast to the financial section information, the introductory and statistical sections have not been audited.
In addition to the Independent Auditor’s Report, the auditors also issued a Report on A greedUpon Procedures Applied to Appropriations Limit Worksheets (GANN Letter), Required Audit Communications (SAS 114 Letter) and Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (SAS 115 Letter). The City was not required to perform a Federal Single Audit Report for the fiscal year ended June 30, 2024 as the City did not expend $750,000 or more of Federal Financial Assistance in the fiscal year.
Management provides a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024 in the MD&A beginning on Page 5 of the Financial Section of the report. Below are some financial highlights from the fiscal year:• The City’s total assets and deferred outflows of resources in excess of its liabilities and deferred inflows of resources (i.e. total net position) were $45.26 million as of June 30, 2024. • Total net position increased by $5.19 million (13.0%) during the fiscal year. Governmental activities net position increased by $3.00 million (11 .8%) while business-type activities net position increased by $2.19 million (14.9%). The change in net position is primarily attributable to increases in cash and investments from revenues exceeding expenses. • As of June 30, 2024, the City’s governmental funds reported a combined ending fund balance of $23.51 million, which is an increase of $2.04 million (9.5%) from the prior fiscal year. Of the $23.51 million, $199 thousand (0.8% of fund balance) is non-spendable prepaid expenditures, $7.21 million (30.7% of fund balance) is restricted by specific legal requirements, and the remaining $16.09 million (68.5% of fund balance) is unassigned. • The unrestricted fund balance in the General Fund, which represents the portion of fund balance that is available for expenditure and not legally restricted, totaled $16.19 million or 123.1% of the total General Fund expenditures in Fiscal Year 2023-2024. • Net position increased by $1 .88 million in the Harbor Fund, $52 thousand in the Sewer Fund, $73 thousand in the Saltwater Fund, $138 thousand in the Solid Waste Fund and $3 thousand in the Avalon Transit Fund. The City recorded a prior period adjustment in the Solid Waste Fund reducing the net position at the beginning of the year by $162 thousand based on the timing of an expense
• The City of Avalon’s capital assets increased by $3.06 million or 9.2% from the prior year. In governmental activities, capital assets increased by $1.17 million or 7.8% while business type activities increased by $1.90 million or 10.3%.
• Noncurrent liabilities decreased by $314 thousand or 1 .2% to $26.54 million, with decreases in OPEB obligations of $1.41 million or 17.8% partially offset by increases in pension liabilities of $925 thousand or 7.3%.
GOAL ALIGNMENT: Transparency
FISCAL IMPACTS: N/A
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS:
1. Annual Financial Report for the Fiscal Year Ended June 30, 2024.
2. Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets (GANN Letter).
3. Required Audit Communications (SAS 114 Letter).
4. Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards (SAS 115 Letter).
CITY OF AVALON, CALIFORNIA
Basic Financial Statements
Year ended June 30, 2024
CITY OF AVALON
Basic Fnanci& Statements
Year ended 3urie 30, 2024
TABLE OF CONTENTS
Page
Number
Introductory Section:
Letter of Transmittal
Organization Chart Xii
List of Elected and Appointed Officials xiii
Financial Section:
Independent Auditor’s Report 1
Management’s Discussion and Analysis 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 26Statement of Activities 27
Fund Financial Statements:
Governmental Funds:
Balance Sheet 30Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 32
Statement of Revenues, Expenditures and Changes in Fund Balances 33 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 35 Proprietary Funds:
Statement of Net Position 37
Statement of Revenues, Expenses and Changes in Net Position 39Statement of Cash Flows 41 Private Purpose Trust Fund:
Statement of Fiduciary Net Position 43Statement of Changes in Fiduciary Net Position 44 Notes to the Financial Statements 45
Required Supplementary Information:
Pension Plans:
Miscellaneous Plan:
Schedule of the Plan’s Proportionate Share of the Net Pension Liability 83Schedule of Plan Contributions 85 Safety Plan:
Schedule of the Plan’s Proportionate Share of the Net Pension Liability 87 Schedule of Plan Contributions 89
Schedule of Changes in Net OPEB Liability and Related Ratios 91Schedule of OPEB Contributions 92
CITY OF AVALON
Basic Financial Statements and Supplemental Data
Year ended June 30, 204
TABLE OF CONTENTS
(CONTINUED)
Page
Number
Budget to Actual Schedules:
General Fund 93
Local Transportation Special Revenue Fund 94
Avalon Housing Authority Special Revenue Fund 95
Notes to Required Supplementary Information 96
Supplementary Information:
Combining and Individual Fund Financial Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet 99Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 101
Schedules of Revenues, Expenditures and Changes
in Fund Balance -Budget to Actual:
Street Special Revenue Fund 103
Traffic Control and Safety Special Revenue Fund 104
Community Development Block Grant Special Revenue Fund 105 Development Impact Fees Special Revenue Fund 106Mclean / Hall I Putnam Trust Special Revenue Fund 107 Internal Service Funds:
Combining Statement of Net Position 109Combining Statement of Revenues, Expenses, and Changes in Net Position 110
Combining Statement of Cash Flows 111
Statistical Section (Unaudited):
Government-wide Information:
Net Position by Component Unit 112
Changes in Net Position 113
Fund and Other Information:
Fund Balances of Governmental Funds 115
Changes in Fund Balances — Governmental Funds 116Governmental Activities Tax Revenues by Source 117Governmental Fund Expenditures by Function 118 Top 25 Sales Tax Producers 119Taxable Sales by Category 120Ten Largest Property Taxpayers 121 Assessed Valuation of Taxable Property 122
Demographic and Economic Statistics 123
Visitors to Catalina Island by Transportation Type 124
Full-Time Equivalent Employees by Department 125
INTRODUCTORY SECTION
CITY OF AVALON
February 12, 2025,
Honorable Mayor, Members of the City Council, and Citizens of the City of Avalon:
We are pleased to submit the annual financial reports of the City of Avalon (City) for the fiscal year ended June 30, 2024. The purpose of this report is to provide the City Council, residents,the general public, and other interested parties with a broad financial outlook of the City, as well as comply with state law which requires that the accounts and fiscal affairs of all municipalentities to be examined annually by an independent certified public accountant.
The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Government Accounting Standards Board (GASB). This report consists of management’s representations concerning the finances of the City. Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with City management. We believe the data presented in this report is accurate in all material respects, and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included.
Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile enough reliable information for the preparation of the City’s financial statements in conformity with GAAP.
Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements are free from material misstatements.
The City’s financial statements have been audited by Davis Farr, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that thefinancial statements of the City for the fiscal year ended June 30, 2024, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
Based on the results of the audit, the independent auditors concluded that there was areasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2024, are presented in conformity with GAAP. The independentauditor’s report is presented as the first component of the financial section of this report.
GAAP requires that management provide a narrative introduction, overview, and analysis toaccompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). •rhis letter of transmittai desinned to c:ornpternent the MD&A and should be read in conjunction with it. The City’i MD&A can he round irnmediateiy oilowing the report of the independent auditor.
City of Avalon Profile
The City of Avalon is the only incorporated community located on Santa Catalina Island in the Channel Islands, approximately twenty-two miles off the coast of Southern California. TheCity is situated on the leeward side of the island around Avalon Bay and its jurisdictionalboundaries occupy just under three square miles or approximately 3.8% of the entire island.
The City serves a population of approximately 3,300 residents and welcomes over one million visitors each year through its picturesque harbor, with the majority of residents and visitors arriving through the City’s Cabrillo Mole Ferry Terminal.
The City of Avalon is located entirely within the coastal zone and the local economy is centered on tourism. As the majority of the City is already built-out, new development primarily comes from infill which helps to preserve the compact, walkable character of the City. The autoette,which is smaller and travels at lower speeds compared to traditional automobiles, is the mostcommon method of transportation in the City and the City closely regulates both the size and number of vehicles permitted to facilitate congestion and encourage active transportation.
The City’s Green Pleasure Pier serves as the hub for commercial and recreational ocean-based activities, including fishing, scuba diving, parasailing and kayaking. In addition to the naturalopen space areas, the City offers multiple parks, picnic areas, and public beaches for both residents and visitors to enjoy.
Form of Government
Incorporated on June 26, 1913, as a general law city, the City operates under the CouncilManager form of government with a five-member City Council elected by the citizens. The Mayor is directly elected to serve a two-year term and Council Members are elected at large to alternating four-year terms. The City Council serves as the legislative and policy-making body of the City, enacting laws and directing such actions as required to provide for the general welfare of the community. The City Manager, appointed by the City Council, is responsible for the administration of all City affairs and the implementation of all policies and ordinances established by the City Council. The City Attorney serves under contract and is appointed by the City Council. All other staff are appointed by the City Manager.
As a full-service city, Avalon provides its citizens with fire protection, planning, public works, recreation, and community services. The City contracts law enforcement services through the Los Angeles County Sheriff’s Department. In addition to these governmental services, the City is responsible for providing harbor, sewer, saltwater, solid waste, and transit services which are managed as proprietary or business-like activities. Harbor operations include the assignment of moorings, patrol and enforcement of state and local laws, administration of waterside business permits, scheduling of dock usage for commercial passenger vessels, andthe maintenance of harbor facilities. Sewer and solid waste operations are managed by the Cty uti!iz!ng contcicted service provkie to operate the City-owned waste-water tratmenL pl:nt and landfill, respectiveiy. In addton, due to the limited freshwater resources on the island, the City utilizes a saltwater system as tnc water supply source for sewer and fire suppression. Lastly, during the fiscal year, the City implemented a new on-demand, appbased, point-to-point shuttle transit system utilizing a contractor to provide low-cost transportation to residents and visitors anywhere within the City limits which replaced a contracted fixed route bus and dial-a-ride transit service.
Budgetary Process and Controls
The City’s budgetary records are maintained on a modified accrual basis, which means that revenues are recorded when measurable and available and expenditures are recorded when goods and services are received or when liability is incurred. The City produces an annual budget, which serves as the foundation for the City of Avalon’s financial planning and control.
Based on the City of Avalon’s Budget and Fiscal Policies, the City is required to adopt a structurally balanced budget, where current operating expenditures are paid with recurring revenues, which are estimated utilizing conservative and transparent assumptions, and one time revenues are used only to support capital outlays and other non-recurring expenditures.
City Staff considers the goals and priorities of the City Council during the budget developmentprocess and the Finance Director presents drafts of the budget to the City Council at public workshops held during the months of May and June. After public input and discussion is received, the City Manager will recommend the budget for adoption and the City Council mayrequest further modifications or introduce an ordinance adopting the budget. The City’sbudget is then adopted by ordinance and becomes effective on July 1st of each fiscal year.
Expenditures authorized in the final budget ordinance are appropriated at the fund level, and in the case of the General Fund, at the department or program level. All amendments to the budget at these levels can only be approved by the City Council. The City Manager has the authority to transfer funds within a given fund and between department appropriations toensure that programmatic budgets may adapt throughout the year to evolving circumstances, as outlined in the City’s Budget and Fiscal Policies.
All governmental, enterprise, and internal service funds are appropriated annually. The governmental funds include the General Fund and special revenue funds, including the Housing Authority, Local Transportation, and other non-major governmental funds.
Current Economic Conditions and Outlook
The information presented in the financial statements can be better understood when it is considered from the broader perspective of the environment in which the City operates. The City of Avalon’s local economy is centered on tourism and the City offers various attractions and activities to its visitors which take advantage of the City’s picturesque landscapes, mild climate, and vibrant waterfront shopping and dining district. The City’s operations are largelyfunded through visitor-driven tax revenues and fees, including Transient Occupancy Tax (TOT), Sales Tax, and Wharfage Fees on cross channel and cruise ship passengers.
III
As a result of this eliont or tourir. u, the City wrs i9rfirontly irnpdcted by tlw COVID—i.9 pondemic and th measures taken to et’ict noq-sseritja tra’el and reduce the transmission of the virus. The phase out of state rcJ !ocal public health restrictions combined with pentup demand or consumer spending, further holst’med by federal government relief programs, faciHtated a strong economic recovery over the last several fiscal years. During the fiscal year ended June 30, 2024, over 1.1 million visitors arrived to the island either through cross channel passenger vessels, cruise ships, private boats and aircraft, and by commercial helicopter. This represents a S.2% increase in visitors from the prior fiscal year and a lO.7%increase in visitors from the pre-pandemic fiscal year ended June 30, 2019. The majority of residents and visitors arrive to the City through cross channel passenger vessels which disembarked 688,593 passengers during the last fiscal year. While cross channel arrivals have returned to pre-pandemic averages, the growth in visitors was driven by increased cruise ship visitors during the fiscal year ended June 30, 2024, which were up 15.7% from the prior fiscal year and up 38.6% compared to the last fiscal year before the pandemic. The increase incruise ship visitors can be largely attributed to increased occupancy levels on the newervessels arriving in the harbor, as the number of cruise ship arrivals was comparable to pre pandemic averages. A comparison of visitors arriving to Catalina Island by transportation mode for the last ten fiscal years can be found in the Statistical Section beginning on page 124 of this report.
Prior to the pandemic, the population in the City was fairly stable with 3,822 residents in 2014 and 3,973 residents in 2020 as reported by the California State Department of Finance. Over the past three years, the City’s population has decreased by 16.6% to 3,313 residents in 2023. In November 2023, the City conducted a community income survey following the US Department of Housing and Urban Development (HUD) income survey questions and guidelines. The City’s 2023 Community Wide Survey identified a median household income in Avalon of $74,000 compared to $109,200 statewide and $87,360 in Los Angeles County.
According to the City’s 2023 Community Wide Survey, 38.9% of respondents worked in Hospitality, Food Service and Recreational sectors and ll.O% in Construction and Trades. The median age of Avalon residents has increased over the past ten years from 34.7 in 2014 to
41.9 in 2023, with the percentage of the population over twenty five years old with a highschool degree increasing from 74.O% to 80.7% and the percentage of the population over twenty five years old with a bachelor’s degree decreasing from 19.8°k to 16.4% over the same period. A ten year comparison of demographic and economic statistics can be found inthe Statistical Section beginning on page 123 of this report.
The net taxable assessed value of properties within the City totaled $1.14 billion for the fiscal year ended June 30, 2024, an increase of 4.8% from the prior fiscal year. The annual increase in assessed value is primarily attributable to home sales at a higher than previously assessed value, increases in value due to new construction, and up to a two percent (2%) annual increase as permitted under Proposition 13. Residential parcels account for 69.8% ofproperties within the City based on net taxable value. The median sales price for a single family residential home increased from $864,250 to $1,050,000 and the average sales price increased from $995,554 to $1,189,524 for the twenty one (21) full value sales during the calendar year 2023 compared to the prior calendar year. The relatively low sales volume in iv
the CiLy contributes to significant fluctuations n veragc anc median sales p1ces year-over year. Affcrdble housing con:inues o he corcem in the City, with over 61.00/0 of households in the City renting based on the City’s 2023 Community Wide Income Survey. A ten year comparison of assessed vljatIon of texahle properLy and the ten largest property tax payers can be found in the Statistical Section beqirinin on page 122 of this report.
Transient Occupancy Tax (TOT) and Sales Tax revenues are the largest sources of revenue in the General Fund and accounted for 60.5% of General Fund revenues for Fiscal Year 2023-
24. Similar to the role of TOT and Sales Tax in the General Fund, the City utilizes visitordriven fees in the harbor to fund its operations and capital improvements, with Wharfage Fees from cross channel and cruise ship passengers accounting for 60.7% of Harbor Fund operating revenues. An overview of these critical tax revenues and use fees is provided in the subsequent sections.
Transient Occupancy Tax (TOT)
TOT is the City’s largest source of revenue, with $7.8 million representing approximately
47.4°k of all General Fund revenues for the fiscal year ended June 30, 2024. The City’s TOT revenues are generated from a 12% tax on both commercial hotels and short-term vacationrentals. The City allocates 22% of the TOT collected to the Love Catalina Island Tourism Authority to be used for the promotion of the City, as approved by the voters in April 2004.
In response to the pandemic, restrictions on non-essential travel during the last quarter of the Fiscal Year 2019-20 reduced TOT revenues to approximately $4.5 million, which was down $893 thousand or 16.6% from the prior year. With the easing of restrictions during Fiscal Year2020-21, the City’s abundance of open spaces and proximity to large urban population centers allowed the City to take advantage of pent-up demand for travel with TOT revenues rebounding to approximately $6.0 million, on track with pre-pandemic trends. In Fiscal Year 2021-22, TOT revenues increased significantly from historical levels, reaching $8.7 million.
The increase was attributed to increased average room rates as room occupancy rates and the number of rooms available did not increase by enough to account for the increase in revenue. During the fiscal year ended June 30, 2023, revenues decreased 4.4% to approximately $8.3 million, with the decrease attributed to an unusually wet winter season impacting visitor levels during the second half of the year. TOT revenues experienced anothermoderate decline of 5.4% to $7.8 million during the fiscal year ended June 30, 2024, with arare tropical storm in August 2023 prompting an evacuation of the island during the peak visitor season contributing to the decrease. The table below summarizes TOT revenues by source over the past ten fiscal years. A ten year comparison of all tax revenues can be found in the Statistical Section beginning on page 117 of this report.
V
TOT Revenue by Source
$10
C
0 =
2014-15
iiiiiiilil
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 •Hotels •Vacation Rentals
On August 1, 2023, the City Council voted unanimously to establish, by urgency ordinance, a45 day moratorium on the issuance of any transient rental licenses to persons who submittedan application following the effective date of the ordinance. The temporary moratorium was issued to protect existing housing stock and allow the City time to study appropriate regulations to maintain public safety and the health of the community, as well as ensure that the issuance of these licenses does not undermine the City’s affordable housing goals. The moratorium does not prevent those who have already been issued a license from continuing to operate transient rentals under those entitlements. The City Council voted unanimously to extend the urgency ordinance for up to 10 months and 15 days on September 15, 2023.
During the fiscal year, the City held several public stakeholder meetings and conducted a survey to provide additional insight and community input. On August 6, 2024, the City Council voted unanimously to further extend the moratorium to July 30, 2025, to provide additional time for analysis and development of further regulations. While revenues from transient rentals decreased during the fiscal year, the decrease was not attributable to the moratorium considering similar decreases were experienced in revenues from hotels over the same period.While the moratorium is not anticipated to have a significant effect on TOT revenues in the short-term, any long-term impacts on revenue growth will be considered as part of theanalysis performed.Sales Tax Sales Tax is the second largest source of revenue in the General Fund, representingapproximately 13.2% of all General Fund revenues. The City directly receives the following portions of the current lO% sales tax from the California Department of Tax and Fee Administration: half percent (O.S%) add-on transaction and use tax to subsidize hospital operations (Measure C) and the local one percent (1°k) Bradley-Burns sales tax. The Measure C tax, approved by the voters in April 2000, is reflected in the sales tax revenue total reported in the financials; however, the $770 thousand in tax revenue during the fiscal year ended June 30, 2024 is entirely transferred to the local hospital, Catalina Island Health, to support its operations.
vi
The Bradley-Burns sales tax is available to
the City to fund general government
services. Taxable sales activity was
relatively flat, down 0.1% from the prior
fiscal year, compared to statewide sales tax
revenues which were down 1.3% over the
same period. Restaurants account for 51.8%
of taxable sales activity in the City andincreased by 3.2% from the prior fiscal year.
Statewide, menu price increases led todecreased foot traffic to restaurants with ashift from fine dining towards value offerings. The majority of restaurants in theCity, 84.5°h based on taxable sales, arecategorized as Casual Dining, and account for thirteen (13) of the top 25 sales tax
producers. A ten year comparison of taxable
sales by category and the top 25 sales tax
producers can be found in the Statistical
Section beginning on page 119 of this report.
Revenue by Business Group
FY20 23-24
Consumer Goods
• Others
• County Pools
• Food/Drug
Wharfage Fees
Wharfage Fees are the largest sources of revenue in the Harbor Fund, representing 60.7% of harbor operating revenues. Wharfage fees are charged to cruise ships and cross channel carriers on a per passenger basis for their use of or impact upon City harbor facilities. The $3 per cross channel passenger fee and $5 per cruise ship passenger fee was unchanged from the prior fiscal year. Combined wharfage revenues totaled $5.78 million, up 6.7% from the prior fiscal year. The increase in revenues was attributable to increased visitors from cruise ships, with cruise wharfage up $356 thousand or 23.5%, while cross channel wharfage was up $9 thousand or 0.2%. While the one hundred and sixteen (116) cruise ship arrivals was comparable to pre-pandemic averages, the average number of passengers on board has increased to approximately 3,200 passengers with cruise operators transitioning to larger vessels since resuming operations after the pandemic. The increase in average occupancy is anticipated to continue into the next fiscal year as three cruise ships with occupancy limits in excess of 5,000 passengers arrived in the fiscal year ended June 30, 2024, and seventeen (17) are scheduled to arrive during the fiscal year ending June 30, 2025. • Restaurants
Vii
Cruise Ship Arrivals -. 1_ast 10 Fiscal Years
140 3500120 3000100 2500
2000
1500
1000
5000
Number of Arrivals —Average Occupancy
Cruise ship wharfage revenues were last increased by $0.50 per passenger on July 1, 2021.
At the June 4, 2024, City Council Meeting, the City Council directed staff to perform a rate analysis on cruise ship wharfage rates to assess whether the current $5.00 per passengercruise ship wharfage fee was still sufficient to adequately reimburse the City on a cost-basedand proportional basis. Staff conducted an analysis and recommended an increase of $2.50 per passenger to fully recover the cruise ship passenger’s share of capital expenditures in the harbor, which would generate an additional $900,000 in harbor revenues annually. On September 3, 2024, the City Council adopted an ordinance increasing the cruise ship wharfage rate to $7.50 per passenger effective January 1, 2026, to provide operators with adequatenotice in consideration for existing bookings under the current rate.
Similar to Measure C, on November 3, 2020, the residents of the City of Avalon approved Avalon Measure H, a special tax for the purpose of financing the infrastructure replacement of a new medical facility for Catalina Island Health. The tax is applied on a per passenger basis to all cross channel and cruise ship passengers similar to the wharfage; however, the funds are held by the City and transferred to Catalina Island Health on a reimbursement basis for eligible expenditures. The tax increased to $2 per passenger on April 1, 2024, with nofurther increases authorized under the measure. Measure H revenues are reported separately from wharfage and included in the General Fund.
8060
40 20
0 <2’ çNy çL Q,V cV
viii
ajçtPrjectLnihaves
During tne fiscal year ended June 30, 2024, the City had capital outlays of $2.1 miliion for governmental activities and $3.2 million for business-type activities compared to budgetedoutlays of $10.4 million and $13.4 million, respectively. Major capital outlays completedduring the fiscal year included the installation of a new above-ground fuel tank at the City’s public fuel dock and the construction of new sidewalk curb ramps throughout the City.
Additional information on capital projects completed during the fiscal year can be found in the MD&A beginning on page 5 of this report. The difference between actual and budgeted outlays is largely attributable to the timing of construction for two major projects that were budgeted to begin during the prior year, delayed while the City pursued additional funding opportunities, and are now anticipated to begin construction during the current fiscal year.Five Corners Pedestrian Improvement Project The Five Corners Pedestrian Improvement Project is a complete streets design improvement to the intersections of Tremont Street, Avalon Canyon Road, Country Club Drive, and Sumner Avenue. The $5.8 million project is primarily funded by grants including funds from LocalTransportation Funds through the Los Angeles County Metropolitan Transportation Authority (Metro), State of California’s State Active Transportation Grant through the California Transportation Commission (CTC), and a local match from the City which includes the City’s Senate Bill (SB) 1 annual allocation derived from fuel taxes and vehicle fees. During the fiscal year ended June 30, 2024, the City pursued additional grant funding opportunities and wasawarded approximately $3.2 million from CTC on April 8, 2024. The goal of the project is to provide safer transportation access along Tremont Avenue and through the “Five Corners” intersection, with improvements including new sidewalks, public transit stops, safer crossings, traffic calming, landscape beautification, and wayfinding.
PARKING
TremontSt
(Jo
Legend
Vehicle Paths
— Pedestrian Paths
• Vehicle -Vehicle Conflicts
Vehicle - Pedestrian Conflicts
ix
CbriI?o f4oIe Ferry Terminiii — P!iase 2
The Cahrillo Mole Ferry Tcrrninal is a multirnoial trnsoorttori hub used by cross-channel carrier passengers traveling between the City nd the mainland, arid serves as the primaryentry point to the City. During the fiscal year ended June 30, 2021, the City completed thefirst phase of its rehabiHtation, reinforcing the existing concrete members, replacing the steelgrates, and repairing the concrete deck and raHing. The next phase of the project will replace and reconfigure the existing building and structures to improve passenger queuing andadjacent transportation circulation at an estimated cost of $20 million. The project will be largely funded through various federal grants with Harbor Fund revenues to provide therequired local matching funds. During the current fiscal year, the City anticipates completing the following pre-construction activities in order to accommodate sustained, mostly uninterrupted operations by cross channel and cruise ship operators during construction:
• Installation of grates at the old steamer ramp along the easterly face of the wharf to allow additional access for construction and emergency vehicles during construction; • Installation of utility systems and other temporary infrastructure to support the future Cabrillo Mole facility as well as temporary facilities; • Purchase of long-lead equipment associated with the upgraded utility system; and• Purchase of temporary facilities The City is currently developing a design-build request for proposal to construct the new facility and anticipates awarding the contract and beginning the demolition of the existingfacility during the first half of the fiscal year ending June 30, 2026. See below for a proposed site plan for the new facility.
x
Re!evant Financial PoIfres
As prL of is bidget process, the City :innualiy reviews arid expands on its Budget arid Fiscal Policies to meet industry best practices and to assist the City in achieving its current and future goals in a fiscally responsible and sustainable manner. These policies include secUons regarding the management of the operating and capital budget process, treasury and cashmanagement, and the definition of appropriate reserve levels. A key component of the policy focuses on reserves or unrestricted fund balance requirements in the General Fund. The adequacy of unrestricted fund balance takes into account the City’s unique circumstances, including its reliance on visitor-driven tax revenues and the potential for future volatility and disruption. The current policy establishes the minimum unrestricted fund balance in the General Fund to equal no less than six months or 5O% of operating expenditures. The City’sGeneral Fund unrestricted fund balance was in compliance with this policy for the fiscal year ended June 30, 2024.
Acknowledaements
The preparation of this Annual Comprehensive Financial Report could not be accomplished without the efficient and dedicated service of the entire staff of the Finance Department, the City’s Management Team and the auditing firm of Davis Farr, LLP. We would also like to thank the City Council and the entire City Staff for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year.
Respectfully submitted,
David Maistros Matthew Baker
City Manager Finance Director
xi
City of Av&on
Orqrzior: CUrt
c:;(;( Year Er!ded June 30, 2024
Citizens of
Ava Ion
City Council
City Attorney City Treasurer
City Manager
Administration Finance Fire Harbor Planning Public Works xii
Cfty f vakm
List o teinc Apptnta C)fah
sc \‘ar n1dJune 0, 2024
Eiecttd_Offid
Mayor Ann MarshallMayor Pro-Tern Lisa Lavelle
Council Mernber Yesenia De La RosaCouncil Member Michael PonceCouncil Member Mary SchicklingCity Treasurer Oley Olsen ADDointed Officials
City Manager David MaistrosCity Attorney Scott Campbell XIII
FINANCIAL SECTION
I isFa rr 18201 Von Kurmun Avenue I Sue llOOIhvne, CA 92612 I CERTFPED PU$LIC ACCOUNTANTS Mon: 949.474.2020 Fox: 949.263.5520 INEPNDET_AUDIIOR’S RPOT
City CouncilCity of Avalon
Avalon, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Avalon (the “City”), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Avalon as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits containedin GovernmentAuditing Standards, issued by the Comptroller General of the United States.Our responsibilities under those standards are further described in the Auditor’sResponsibilities for the Audit of the Financial Statements section of our report. We arerequired to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
As described further in note 14 to the financial statements, during the year ended June 30, 2024, the City recorded a prior period adjustment. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether thereare conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for one year after the date that the financial statements are issued.
1 ALdiror’s P.spcnsihuIiikc tôr tht Aufi cf Lh F5ranal tteis Our ohjec:tiv ar to obtain r.sonaie assuiarice about ‘heer the inanciaI statementsas a wriole are free from rnatea missLatemnt, vhether due to ftaud or error, and toissue an audtors report that indudes our opinions. Reasonable assurance is a high level o assurance but is not absolute assurance and therefore is not a guarentee that an auditconducted in accordance with GAAS will always detect a material misstatement when itexists. The risk of not detecting a material misstatement resulting from fraud is higherthan for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements areconsidered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposeof expressing an opinion on the effectiveness of the City’s internal control.
Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate theoverall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, amongother matters, the planned scope and timing of the audit, significant audit findings, andcertain internal control—related matters that we identified during the audit.
Required Supplementary InformationAccounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual General Fund, Local Transportation Special Revenue Fund, Avalon Housing Authority Special Revenue Fund, Schedule of Changes in Net Pension Liability and Related Ratios During the Measurement Period, Schedule of Pension Plan Contributions, Schedule of Changes in Net OPEB Liability and Related Ratios, and Schedule of OPEB Plan Contributions be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency withmanagement’s responses to our inquiries, the basic financial statements, and other 2 knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Report on Summarized Comparative InformationWe have previously audited the City of Avalon’s 2023 financial statements, and weexpressed an unmodified audit opinion on those audited financial statements in our reportdated February 26, 2024. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2023, is consistent, in all materialrespects, with the audited financial statements from which it has been derived.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budget to actual Schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and budget to actual schedules are the responsibility of management and were derived from and relate directlyto the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in theaudit of the basic financial statements and certain additional procedures, includingcomparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining andindividual nonmajor fund financial statements and budget to actual schedules are fairlystated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditors report thereon. Our opinions on the financial statements do not cover the other information, and we do notexpress an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and considerwhether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards. we have also issued our report dated February 12, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on theeffectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
LLP
Irvine, California
February 12, 2025
4 Management of the City of A’alon (Cily) offers this rldrrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024 (Fiscal Year 2023-2024 (FY24)). The discussion and analysis below compares FY24 to Fiscal Year 2022-2023 (FY23), with variances reported relative to FY23 results. We encourage readers to consider the information presented here in conjunction with the accompanying transmittal letter beginning on page i and the City’s financial statements found on pages 26-44 of this report.
Fiscal Year 2023-2024 Financial Highlights
• The City’s total assets and deferred outflows of resources in excess of its liabilities and deferred inflows of resources (i.e. total net position) were $45.26 million as of June 30, 2024.
• Total net position increased by $5.19 million (13.0%) during the fiscal year.
Governmental activities net position increased by $3.00 million (11.8°h) while business-type activities net position increased by $2.19 million (14.9%). The changein net position is primarily attributable to increases in cash and investments from revenues exceeding expenses.
• As of June 30, 2024, the City’s governmental funds reported a combined ending fund balance of $23.51 million, which is an increase of $2.04 million (9.5%) from the prior fiscal year. Of the $23.51 million, $199 thousand (0.8% of fund balance) is nonspendable prepaid expenditures, $7.21 million (30.7% of fund balance) is restricted by specific legal requirements, and the remaining $16.09 million (68.5% of fundbalance) is unassigned. • The unrestricted fund balance in the General Fund, which represents the portion of fund balance that is available for expenditure and not legally restricted, totaled $16.19 million or 123.1% of the total General Fund expenditures in Fiscal Year 2023-2024. • Net position increased by $1.88 million in the Harbor Fund, $52 thousand in the Sewer Fund, $73 thousand in the Saltwater Fund, $138 thousand in the Solid Waste Fund and $3 thousand in the Avalon Transit Fund. The City recorded a prior period adjustment reducing the net position at the beginning of the year by $162 thousand based on the timing of an expense
• The City of Avalon’s capital assets increased by $3.06 million or 9.2% from the prior year. In governmental activities, capital assets increased by $1.17 million or 7.8% while business-type activities increased by $1.90 million or 10.3%. • Noncurrent liabilities decreased by $314 thousand or 1.2% to $26.54 million, with decreases in OPEB obligations of $1.41 million or 17.8% partially offset by increases in pension liabilities of $925 thousand or 7.3%.
5 Overview fthc F iIc& Stitement
This discussn and analysis s intende; to serve as an intrcdijction to the City’s basic francia statements. The City’s basic financai staternets are comprised of three components: (1) government-wide financia statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other supplementary information intended tofurnish additional detail to support the basic financial statements.
Government-Wide Financial Statements
Government-wide financial statements are designed to provide readers with a broad overviewof the City’s finances, in a manner similar to a private-sector business. Government-wide financial statements are prepared on an accrual basis of accounting, which means they measure the flow of all economic resources of the City as a whole, including all its capital assets, long-lived assets, and long-term liabilities. Government-wide financial statementsconsist of the Statement of Net Position and the Statement of Activities.
The Statement of Net Position presents financial information on all of the City’s assets and liabilities, deferred inflows and outflows of resources, with the difference between them reported as net position. Certain interfund activities have been eliminated as required by GASB Statement No. 34. Over time, increases or decreases in net position may serve as auseful indicator of whether the financial position of the City is improving or deteriorating. In order to assess the overall health or financial condition of the City, other non-financial factorsshould also be taken into consideration which include changes in the City’s property tax base and the condition of the City’s infrastructure (roads, improvements, drainage, storm and sewer lines, etc.).
The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. This is consistent with a full accrual concept, which may result in the reporting of revenues and expenses in the current fiscal year, with cash flows occurring in future fiscalperiods (e.g. uncollected revenues, pension contributions, and earned but not used leave).
Both government-wide financial statements distinguish functions of the City that areprincipally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their coststhrough user fees and charges (business-type activities). All of the City’s basic services are considered governmental activities. This includes general government, public safety, publicworks, building and planning, and community services. These services are supported by general City revenues such as taxes, and by specific program revenues such as ambulance charges and recreation program fees. The City’s business-type activities include harbor,sewer, salt water, solid waste, and transit operations. Unlike governmental activities, these services are to be supported by charges paid by users based on the amount of services used.
The government-wide financial statements can be found on page 26 of this report. 6 Fund T[ranciaI Statrncnts
A fund is a grouping of reiated accounts that s used to nantn control over resources that have been seqregated for specific activities or objectives. Th City, ike other state and local governments, uses fund accounting to ensure and dernonstate compliance with financerelated legal requirements for using certain taxes, grants, and other resources.
Fund financial statements provide detailed information about each of the City’s most significant funds, called major funds. Major funds are presented individually, with all nonmajor funds summarized and presented in a single column. Subordinate schedules present the detail of these non-major funds. Major funds present the major activities of the City for the fiscal year and may change from year to year as a result of changes in the pattern of the City’s activities. The City’s funds are segregated into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds.
Governmental Funds are used to account for essentially the same functions reported asgovernmental activities in the government-wide financial statements. However, unlike thegovernment-wide financial statements, governmental funds focus on near-term inflows andoutflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This represents a modified accrual basis of accounting, with capital assets, long-lived assets, and long-term liabilities excluded from the financial statements.
Such information may be useful in evaluating the City’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for the governmentalfunds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.
The major governmental funds include the General Fund, Local Transportation Fund, and Avalon Housing Authority Fund, which are reported in detail in the governmental fund financial statements. Data from the remaining governmental funds are shown in aggregate as other non-major governmental funds. Individual fund data for each of these non-major governmental funds is provided in the form of supplementary information in the report.
The governmental fund financial statements can be found on page 30 of this report.
Proprietary Funds are used to account for services for which the City charges external customers or internal departments of the City. The City maintains two types of proprietary funds: enterprise funds and internal service funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements but in greater detail and with additional 7 information such as a statinct of cE;Sn 1o,v:. The Ctv us enterprise funds to nccount for its Harbor, Sewer, Saltwatei, Sola ‘i!aste, nnd Avi!cn Tran:t funds.
Internal service funds are an accounting device useb to accumulate and allocate costs internally among the City’s various functions. The City uses three internal service funds to account for general administration, vehicle maintenance, and the management of risksassociated with general liability insurance. Since internal service funds predominately benefitgovernmental rather than business-type activities, they have been included withingovernmental activities in the government-wide financial statements but combined into asingle aggregated presentation in the proprietary fund financial statements. Individual funddata for the internal service funds is provided in the form of supplementary information in the report.
The basic proprietary fund financial statements can be found on page 37 of this report.
Fiduciary Funds are used to account for resources held for the benefit of parties outside the government where the City is the trustee or fiduciary. Fiduciary funds are not reflected in thegovernment-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. After the dissolution of the Avalon Community Improvement Agency (ACIA) on February 1, 2012, the non-housing assets and liabilities of the former redevelopment agency were transferred to the Successor Agency of the ACIA (Successor Agency) and are reported as a fiduciary fund (private-purpose trust fund).
The fiduciary fund financial statements can be found on page 43 of this report.
Notes to the Financial Statements
The notes provide additional information essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found immediately following the fund financial statements.
Required Supplementary Information and Other Information In addition to the basic financial statements and accompanying notes, this report also presents Required Supplementary Information (RSI) concerning the funding progress for theCity’s other post-employment benefits (OPEB), its proportionate share of net pension liability in regards to the California Public Employees Retirement System (CaIPERS) cost sharing pool of which the City is a member, and the City’s pension plan employer contributions. A budgetary comparison statement is also included in this section to demonstrate compliance with the adopted budget for the major governmental funds. The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information.
The required supplementary information and other information can be found beginning on page 83 of this report.
8 Government-Wide Financial Analysis
The analysis in this section focuses on the total net position (Table 1), changes in net position (Table 2), and the net cost of services (Table 3) for the City’s governmental and business-like activities.
The City’s net position is comprised of three components: net investments in capital assets; restricted net position; and unrestricted net position. As noted earlier, changes in net position may serve as an indicator of a government’s financial position over time. The City’s assets and deferred outflow of resources exceeded liabilities and deferred inflows of resources for both governmental and business-type activities by $45.26 million as of June 30, 2024. This combined net position reflects an increase of $5.19 million (13.0%) from June 30, 2023.
Table 1
Statement of Net Position
(in Thousands)
Governmental Activities Business -Type Activities Total 2024 2023 2024 2023 2024 2023
Current and restricted assets $ 27,373 $ 25,319 $ 14,895 $ 11,972 $ 42,268 $ 37,291Capital assets 16,112 14,946 20,387 18,490 36,499 33,436 Total Assets $ 43,485 $ 40,265 $ 35,282 $ 30,462 $ 78,767 $ 70,727 Deferred Outflows ofResources $ 3,537 $ 3,836 $ 2,205 $ 2,440 $ 5,742 $ 6,276 Current liabilities 1,859 1,851 3,345 842 5,204 2,693
Proportionate share of collective
net pension liability 8,250 7,601 5,276 5,000 13,526 12,601 Proportionate share of collective
net OPEB liability 4,169 5,046 2,374 2,911 6,543 7,957
Non-current Liabilities 566 650 6,020 5,760 6,586 6,410 Total Liabilities $ 14,844 $ 15,148 $ 17,015 $ 14,513 $ 31,859 $ 29,661 Deferred Inflows of Resources $ 3,870 $ 3,643 $ 3,519 $ 3,630 $ 7,389 $ 7,273Net Position:Net investment in capital assets $ 15,830 $ 14,853 $ 18,990 $ 18,490 $ 34,820 $ 33,343Restricted Low and moderate income
Housing 5,632 5,544 - - 5,632 5,544
Capital projects 129 118 - - 129 118
Transportation 356 265 - - 356 265
Hospital 1,099 327 - - 1,099 327
unrestricted 5,262 4,203 (2,037) (3,732) 3,225 471
Total Net Position $ 28,308 $ 25,310 $ 16,953 $ 14,758 $ 45,261 $ 40,068 The largest component of the City’s net position, totaling $34.82 million (76.9% of net position), reflects its investment in capital assets (e.g. land, buildings, improvements, equipment, infrastructure and construction in progress), less accumulated depreciation and any outstanding debt that was used to acquire or construct those assets. Capital assets are 9 used by the City to provide a variety of services to its citizens and are not available for future spending. Although the City’s investment in capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources,since the capital assets themselves cannot be used to liquidate the liabilities. Net investmentin capital assets increased by $1.48 million (4.4%) from the prior fiscal year. Net investment in capital assets from governmental activities increased by $977 thousand (6.6%) and frombusiness-type activities by $500 thousand (2.7%). The increase in this component of netposition is due to an increase in capital project expenditures that had been deferred during the pandemic.
Another portion of the City’s net position, totaling $7.21 million (15.9% of net position), represents resources that are subject to external restrictions on how they may be used. This includes $5.63 million in funds restricted for low and moderate income housing, $129 thousand for capital projects, $356 thousand for street transportation programs, and $1.09 million for hospital infrastructure improvements. Restricted net position increased by $962 thousand (15.4%) from the prior fiscal year for governmental activities. The increase in this component of net position is primarily driven by increases to restricted net position related to the Hospital of $772 thousand. The net position of $1.09 million restricted for the Hospital represents the cash and other current assets available from special tax collections to finance the infrastructure replacement of a new medical facility (Measure H).
The remaining balance of $3.22 million (7.1% of net position) is classified as unrestricted and may be used at the City’s discretion to meet its ongoing obligations to citizens and creditorsin accordance with the City’s fund designation and fiscal policies. This includes an unrestrictednet position of $5.26 million for governmental activities and a negative $2.04 million for business-type activities. The negative net position is primarily due to the City’s noncurrent net pension liabilities, OPEB obligations, and estimated landfill closure costs exceeding its current assets for business-type activities. Unrestricted net position increased by $2.75 million from the prior fiscal year. This reflects an increase of $1.05 million for governmental activities and $1.70 million for business-type activities. The increase is primarily attributable to increases in cash and other current assets as the result of non-restricted revenues exceeding expenses and investment in capital assets.
The table below (Table 2) summarizes the changes in revenues and expenses over the prior two fiscal years impacting the net position for both governmental and business-type activities.
Program revenues, which are directly related to a specific activity, are reported separately from general revenues to determine which programs are self-supporting or the extent of general funding required to provide the service. Further analysis of the net cost of activities is included in Table 3.
10 Table 2
Statement of Activities
(in Thousands)
Business -Type Governmental Activities Activities
2024 2023 2024 2023 2024 2023
Total
Program Revenue
Charges for Services
Operating Grants &
ContributionsCapital Grants & Contributions
General Revenue
Taxes:
Property taxes
Sales taxes
Transient Occupancy taxes
Other taxes
Licenses and Permits
Investrrnt earnings
Miscellaneous income
Transfers
Total Revenues
Expenses
Public SafetyFire and AmbulancePlanning, Building &
Engineering
Community Services
Public Works
Transportation
General Government
Harbor
Sewer
SaltwaterSolid Waste
Avalon Transit
Total Expenses
Change in Net Position
$ 2,360
3,257
$ 2,125
2,850
$ $
$ 1,112 $ 1,239 $ 16,057 $ 15,742 $ 17,169 $ 16,981
3,625 2,963 433 297 4,058 3,260
106 - 106 - 1,108 1,027 - - 1,108 1,027
2,191 2,220 - - 2,191 2,220
7,869 8,319 - - 7,869 8,319
1,580 1,494 205 231 1,785 1,725
4 8 - 4 8
1,138 71 407 136 1,545 207
127 182 460 4 587 186
(288) (685) 289 685 1 - $ 18,572 $ 16,838 $ 17,851 $ 17,095 $ 36,423 $ 33,933 880 963 - - 880 963
1,138 1,021 - - 1,138 1,021
2,290 1,840 - - 2,290 1,840
1,399 1,722 - - 1,399 1,722
4,249 3,268 - - 4,249 3,268 - - 8,300 7,802 8,300 7,802 - - 3,213 2,906 3,213 2,906 - - 823 667 823 667 - - 2,805 2,461 2,805 2,461 - - 354 241 354 241 $ 15,573 $ 13,789 $ 15,495 $ 14,077 $ 31,068 $ 27,866$ 2,999 $ 3,049 $ 2,356 $ 3,018 $ 5,355 $ 6,067 25,309 22,260 14,596 11,740 39,905 34,000
$ 2,360
3,257
$ 2,125
2,850
Net Position at Beginning of
Year - as restated (see note
14)
_______________________________________________________________________ NetPositionatEndofYear $ 28,308 $ 25,309 $ 16,952 $ 14,758 $ 45,260 $ 40,067 Governmental Activities
The City’s net position from governmental activities increased by $3.00 million for the fiscal year ended June 30, 2024, with program and general revenues of $18.57 million exceeding expenses of $15.57 million. The City’s net position from governmental activities had increased by $3.05 million in the prior fiscal year ended June 30, 2023. Total revenues for governmental activities increased by $1.73 million (10.3%) compared to the prior fiscal year. This is 11 primarily attributable to increases in Investment Earnings of $1.07 million. The City benefitted from increased average cash balances from revenues exceeding expenditures over the last two fiscal years, higher interest rates in its Local Agency Investment Fund (LAIF) investments, and the reinvestment of maturing Certificates of Deposits and short-term United States Treasury obligations at higher interest rates which accounts for the increases in Investment Earnings.
Tax revenues decreased by $312 thousand (2.4%), with decreases in transient occupancy taxes (TOT) of $450 thousand (5.4°h) and sales tax of $29 thousand (1.3%) partially offset by increases in property tax revenues of $81 thousand (7.9°k) and other tax revenues of $86 thousand (5.8%). TOT revenues from hotels totaled $5.33 million, down 6.2% from the priorfiscal year, and TOT from vacation rentals totaled $2.53 million, down 3.6%. Sales tax revenues totaling $2.19 million include $770 thousand collected as a half percent (0.5%) addon sales tax and passed through to Catalina Island Health to subsidize the local hospital’s operations, in addition to the special tax for hospital infrastructure replacement. Other taxes include a four percent (4.O%) admission tax on ticketed admissions and guided tours in the City totaling $841 thousand, $460 thousand in Property Tax in Lieu of Vehicle License Fee,$165 thousand in franchise fees, and $108 thousand in business license taxes.Charges for Services decreased by $127 thousand (10.3%). The decrease is largelyattributable to decreases in fees related to building and planning, including building permit fees down $39 thousand, planning application fees down $28 thousand, and building plan check fees down $59 thousand. Planning and building-related revenues fluctuate year-overyear given the size of the City and level of existing development.Operating Grants and Contributions increased by $662 thousand (22.3%) as the result ofincreases from the Measure H special tax revenues for hospital infrastructure replacement offset by decreases in Los Angeles County Metropolitan Transportation Authority (LACMTA) Local Return Proposition A Discretionary revenues. The increase in the Measure H special taxis attributable to the scheduled doubling of the per passenger tax rate compared to the prior fiscal year. The decrease in LACMTA Local Return revenues is due to one-time operating grant revenues received during the prior fiscal year and used to further support land transit operations and the commuter subsidy program.
Total expenses for governmental activities increased by $1.78 million (12.9%) compared to the prior fiscal year. Public Safety expenses increased by $235 thousand (11.1%) as the result of contracted increases with the Los Angeles County Sheriff’s Department. Fire and Ambulanceexpenses increased by $407 thousand (14.3%) driven by scheduled increases in salaries and benefits of $192 thousand (8.9%) as negotiated with the respective bargaining units and increases in internal service charges for vehicle maintenance of $78 thousand (68.8%).Planning, Building, & Engineering decreased by $83 thousand (8.6%) due to non-recurring planning studies contracted and completed during the prior fiscal year. Community Servicesincreased by $117 thousand (11.5%) driven by non-labor related operating expenses. The decrease in Transportation expenses was the result of the one-time operating grants received in the prior year. The increase in General Government is from expenditures related to Measure H.
12 Business-Type Activities
The City’s net position from business-type activities increased by $2.19 million for the fiscal year ended June 30, 2024, with program and general revenues of $17.85 million exceedingexpenses of $15.50 million and the prior period adjustment of $161 thousand. The City’s net position from business-type activities had increased by $2.34 million in the prior fiscal year ended June 30, 2023.
Total revenues for business-type activities increased by $756 thousand (4.4%) compared to the prior fiscal year. Harbor-related charges for services and miscellaneous income increased by $575 thousand (6.4%) with cruise ship wharfage revenues driving the overall increase.
The increase in cruise ship wharfage revenues of $356 thousand (23.5%) is primarily attributable to larger average occupancy vessels arriving during the fiscal year as the numberof vessels and occupancy rates were comparable to the prior year. Charges for sewer, saltwater, and solid waste services increased by $173 thousand (2.6%) as the result ofscheduled rate increases collected through parcel assessments on property tax rolls.Increases in operating grants and investment earnings were offset by decreases in transfersfrom governmental activities compared to the prior fiscal year.
Total expenses for business-type activities increased by $1.42 million (10.1%) compared to the prior fiscal year. Contractual service increases across all business-type activities,excluding Avalon Transit, account for the largest portion of increased expenses with mostcontracts including escalators tied to the Consumer Price Index (CPI) or other annual increases. Salaries and benefits increased by $288 thousand (8.6%) for business-type activities driven by scheduled increases in salaries and benefits as negotiated with the respective bargaining units.
Net Cost of Activities
Governmental activities are primarily supported by taxes but may be partially offset through the collection of fees for services. For example, Planning, Building, & Engineering expensestotaling $880 thousand were offset through the collection of building permits and other planning-related fees and grant revenues, totaling $398 thousand, for a net cost of $482 thousand supported through general tax revenues. In general, business-type activities should be self-supporting with the cost of providing the service recovered by the users of the serviceprovided. However, the City has historically subsidized operating costs for transit services with tax revenues in order to provide these services to residents and visitors at an affordable rate.
After considering program revenues supporting each activity, the net cost of services, totaling $9.74 million, represents the financial burden or subsidy that was placed on the City’s taxpayers during the year as shown in the table below.
13 Table 3
Net Cost of ActMties
(in Thousands)
Total Cost of Services Net Cost of Services
2024 2023 2024 2023
Government Activities:
Public Safety $ 2,360 $ 2,125 $ 2,076 $ 1,852Fire and Ambulance 3,257 2,850 2,726 2,322 Planning, Building &Engineering 880 963 482 442
Community Seniices 1,138 1,021 62 937
Public Works 2,290 1,840 2,031 1,502
Transportation 1,399 1,722 (6) (304)
General Governnnt 4,249 3,268 2,459 2,835
Total Government Activities $ 15,573 $ 13,789 $ 10,730 $ 9,586 Business-Type Activities:
Harbor $ 8,300 $ 7,802 $ (1,196) $ (1,433)
Sewer 3,213 2,906 (22) (276)
Saltwater 823 667 (57) (222)Solid Waste 2,805 2,461 15 (190) Avalon Transit 354 240 266 158
Total Business-Type
Activities $ 15,495 $ 14,076 $ (994) $ (1,963)
Total Primary Government $ 31,068 $ 27,865 $ 9,736 $ 7,623 The net cost of services for governmental activities increased by $1.14 million (11.9%) withthe total costs of services increasing more than offsetting program revenues with the exception of General Government activities due to Measure H tax revenues exceedingexpenditures. For business-type activities, the service charges exceeded the cost of services for Harbor, Sewer, and Saltwater activities by $1.20 million, $22 thousand, and $57 thousand, respectively, with the excess program revenues available to fund future capital outlays. For Solid Waste, service costs exceeded program revenues by $15 thousand. The City has phased in the required rate increases identified in the most recent cost of service study to address this shortfall and ensure program revenues are sufficient to cover the cost of service going forward. The increase in net cost of service related to Avalon Transit is attributable to increased internal service charges to fully account for fleet maintenance activities. 14 Fund Financial Statement Analysis
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Suchinformation is useful in assessing the City’s financing requirements. In particular, theunassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, ora group or individual that has been delegated authority to assign resources for particular purposes by the City of Avalon’s Council.
Table 4
Fund Balances by Category
Fiscal Year Ended June 30, 2024
Nonspendable:
Prepaid Expenses
Restricted For:
Low and Moderate Income Housing
Capital ProjectsStreet Projects
Hospital
Unassigned:
Total Fund Balances
General Fund All Other Funds Total Funds
$ 198,876 $ - $ 198,876
- 5,631,868 5,631,868
128,759 128,759
356,194 356,194
1,098,658 - 1,098,658
16,188,299 (95,984) 16,092,315
$ 17,485,833 $ 6,020,837 $ 23,506,670
As of June 30, 2024, the City’s governmental funds reported a combined ending fund balance of $23.51 million, an increase of $2.04 million (9.5%) from the prior fiscal year. The totalgovernmental fund balance is composed of $199 thousand in non-spendable funds (0.8°h of fund balance), $7.21 million in restricted funds (30.7% of fund balance), and $16.09 million (68.5% of fund balance) in unassigned funds. The General Fund is the primary operating fund of the City. All other governmental funds include funds restricted for low and moderate income housing, capital projects, including $82 thousand from the collection of developmentimpact fees, street projects from taxes on gasoline, and Measure H taxes collected to fund the construction of a new hospital.
The General Fund’s unassigned fund balance of $16.19 million exceeds its total expenditures for the fiscal year ended June 30, 2024 by $1.98 million. The City has an adopted policy requiring the General Fund’s unrestricted fund balance to equal at least 5O% of annual expenditures. While the current balance exceeds 100% of annual expenditures, thesufficiency of reserves and working capital in other funds should also be considered when assessing the sufficiency of the unassigned fund balance in the General Fund. 15 Revenues:
Table 5
General Fund Financial Summary
2024 2023 $Change %Change
$ 12,992,345 $ 13,306,952 $ (314,607) -2.4%
366,856 510,508 (143,652) -28.1%
12,592 8,297 4,295
846,281 (54,140) 900,421 -1663.1%
1,628,048 620,499 1,007,549 162.4%
655,990 627,374 28,616 4.6%
111,693 201,678 (89,985) -44.6%
$16,613,805 $15,221,168 $ 1,392,637 9.l%
Expenditures:
Public SafetyFire and AmbulancePlanning, Building &Engineering Community Services
Public Works
Transport at ion
General GovernmentCapital Expenditures
Debt Service _______________________________ ________________ _______________ Total Expenditures Excess(Deficiency) ofRevenues Over(Under)Expenditures
Other Financing Sources(Uses)
24,550 3,794 20,756
(474,761) (514,475) 39,714 -7.7%
$ (450,211) $ (510,681) $ 60,470 -11.8%$ 1,956,616 $ 2,940,407 $ (983,791) -33.5% Total revenues of $16.61 million exceeded total expenditures of $14.21 million and net transfers of $450 thousand by $1.96 million for the fiscal year ended June 30, 2024. Total revenues exceeded expenditures and transfers out by $2.94 million in the prior fiscal year.
Total revenues increased by $1.39 million (9.1%) from the prior fiscal year. As previously noted, the increase is largely attributable to investment income up $900 thousand in the General Fund from the prior fiscal year. Tax revenues of $12.99 million were down $314
51. 8%
Taxes
Licenses, Permits and FeesFines, Forfeitures andPenalties Investment IncomeIntergovernmental RevenueCharges for ServicesOther Revenue Total Revenues
$ 2,369,144 $ 2,108,816 $ 260,328 12.3%
3,272,310 2,874,513 397,797 13.8%
813,847 986,661 (172,814) -17.5%889,023 800,821 88,202 11.0% 1,441,258 1,178,436 262,822 22.3%
3,734,313 3,335,261 399,052 12. 0%
1,590,563 348,562 1,242,001 356.3%
96,520 137,010 (40,490) -29.6°k
$14,206,978 $11,770,080 $ 2,436,898 20.7%$ 2,406,827 $ 3,451,088 $ (1,044,261) -30.3% Transfers In 547.1%Transfers Out
Total Other FinancingSources(Uses)
Net Change in FundBalance
16 thousand (2.4%) primarily from decreases in TOT revenues of $450 thousand (5.4%) offset by modest increases in other tax revenues. TOT is the largest tax revenue accounting for
60.6°h of General Fund tax revenues and 47.4% of total revenues. The decrease in TOT revenues is partially attributable to a rare tropical storm prompting an evacuation of the island for a weekend in August 2023 during the peak visitor season. Revenues from licenses, permit, and fees were down $144 thousand (28.1%) from the prior fiscal year. Planning and buildingrelated revenues fluctuate year-over-year considering the size of the City and level of existingdevelopment as previously discussed. Nleasure H Special Tax revenues of $1.36 millionaccount for the majority of the increase in Intergovernmental Revenues, with the tax ratedoubling from the prior fiscal year. Other Revenues include donations and other miscellaneous revenues.
Total expenditures increased by $2.44 million (20.7%) from the prior year, partially attributable to increases in Capital Expenditures of $1.24 million (356.3%). The City haddeferred major capital expenditures in response to the pandemic and restarted several major projects while pursuing additional grant funding opportunities during the fiscal year. Capital Expenditures are discussed in greater detail in the Capital Assets section of the MD&A. Aspreviously noted, increases in Public Safety expenditures of $260 thousand (12.3%) arelargely attributable to contract increases with the Los Angeles County Sheriff’s Department contract and decreases in Planning, Building, and Engineering expenditures are largelyattributable to decreased contract expenditures for various planning documents, including the Housing Element and Active Transportation Plan completed during the prior fiscal year.
Salaries and wages across all departments En the General Fund increased by $177 thousand (7.3%) compared to the prior fiscal year. The increase is attributable to negotiated wageincreases, promotions, and the restoration of Public Works maintenance positions for a full fiscal year that had been eliminated in response to the pandemic. In addition, during the fiscalyear, the City amended the memorandums of understanding with its bargaining units increasing the maximum contribution paid by the City towards health care premiums inresponse to CaIPERS healthcare plan premium increases. As a result, expenditures related to employee insurance benefits in the General Fund increased by $49 thousand or l4.9%.
The difference between the net changes in governmental fund balances of $2.04 million and the change in net position of governmental activities of $3.00 million is due to the treatment of capital outlays, long-term liabilities, including pension and OPEB, unavailable revenues, and internal service funds in the Government-wide Financial Statements compared to the Fund Financial Statements. For example, governmental funds report capital outlays as expenditures; however, in the Statement of Activities, the cost of those assets is allocatedover their estimated useful lives as depreciation expense. Capital outlays exceeded depreciation in the current period by $871 thousand. A complete reconciliation can be found in the audited financial statements.Unlike the governmental-type activities, reporting for the business-type activities of aproprietary or enterprise fund focuses on the net position and changes in net position as opposed to a fund balance; therefore a reconciliation between the government-wide financialstatements and the proprietary fund financial statements is not necessary. 17 The table below provides a summary of net position by business-type activities for each enterprise fund.
Table 6
Business-Type Activities
Fiscal Year Ended June 30, 2024
Harbor Sewer Saltwater Solidwaste Avalon Transit Total
Operating Revenues:
Charges for Services $ 9,075,929 $ 3,235,249 $ 880,317 $ 2,777,545 $ 88,368 $ 16,057,408Other revenue 443,170 - - 17,060 - 460,230 Total Operating Revenues $ 9,519,099 $3,235,249 $ 880,317 $2,794,605 $ 88,368 $ 16,517,638 Operating Expenses:
Wages, Benefits, and
Contracts $ 5,687,440 $ 2,401,545 $ 769,483 $ 2,749,230 $ 188,350 $ 11,796,048 Supplies and Maintenance 2,069,779 407,044 13,251 28,034 128,923 2,647,031 Depreciation 661,799 435,979 50,952 46,463 56,687 1,251,880 Total Operating Expenses $ 8,419,018 $3,244,568 $ 833,686 $2,823,727 $ 373,960 $ 15,694,959 Operating Income(Loss) $ 1,100,081 $ (9,319) $ 46,631 $ (29,122) $ (285,592) $ 822,679 Non-Operating Revenues(Expenses)
Taxes $ 205,574 $ $ - $ - $ - $ 205,574
Grants and Other Revenue 419,960 - 12,584 - 432,544
Impairment Loss (3,226) - - - - (3,226)Interest Income 161,014 64,028 27,322 154,511 - 406,875Interest Expense - (3,013) (1,123) - - (4,136) Total Non-Operating
Revenues(Expenses) $ 783,322 $ 61,015 $ 26,199 $ 167,095 $ - $ 1,037,631 Capital Contributions and Transfers
Transfers In $ - $ - $ - $ - $ 288,802 $ 288,802
Transfers Out - Total Capital Contributions
and Transfers $ - $ - $ - $ - $ 288,802 $ 288,802Change in Net Position $ 1,883,403 $ 51,696 $ 72,830 $ 137,973 $ 3,210 $ 2,149,112 Net Position at Beginning of
Year - as restated (see note
14) $ 8,915,753 $4,626,365 $1,525,618 $ (633,106) $ 308,897 $ 14,871,048 Net effect of activity between
the Internal Service funds andenterprise funds over time: 207,252 Net Position at End ofYear $ 10,799,156 $4,678,061 $1,598,448 $ (495,133) $ 312,107 $ 17,227,412 The net position for each of the City’s enterprise funds increased from the prior fiscal year, as operating and non-operating revenues exceeded expenses and transfers out. The Solid Waste Fund’s deficit net position decreased by $137 despite operating costs exceeding operating revenues by $29 thousand. The increase in net position is attributable to interest income of $155 thousand. Non-current liabilities related of $5.68 million related to landfill closure obligations also contribute to the deficit net position. The City completed a cost of servicestudy for Solid Waste operations that included scheduled rate increases of 65.9% over a period of five years to address this funding deficit and is working on permitting and preliminary engineering to expand the height of the Pebbly Beach Landfill to extend the remaining useful life and reduce the existing liability.
18 The fiduciary funds basic financial statements consist of a Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position, summarizing the assets, liabilities, and net position of the City’s Private-Purpose Trust fund for the Successor Agency to the Avalon Community Improvement Agency (Successor Agency). The Private-Purpose Trust fund, which has a negative net position, was established to wind down the affairs of the City’s improvement agency as a result of the statewide elimination of redevelopment agencies. Once the enforceable obligations of the Successor Agency have been dissolved the City’s PrivatePurpose Trust fund will be eliminated.The Successor Agency receives taxes from the State’s Redevelopment Property Tax Trust Fund (RPTTF) every six months to fund enforceable obligations due July 1 to December 31 (Period A) and January 1 to June 30 (Period B). Debt service obligations will continue through September 1, 2034; therefore the Successor Agency has a negative net position that will continue to diminish as obligations are paid. The final debt service payment is scheduled to be made September 1, 2034 during the fiscal year ending June 30, 2035.
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2024 totaled $36.50 million, net of accumulated depreciation. Total net capital assets includes net capital assets from governmental activities of $16.11 million and net capital assets from business-type activities of $20.39 million. This investment in capital assets includes land, buildings, improvements other than buildings, machinery and equipment, and infrastructure. The City of Avalon’s capital assets, net of depreciation and disposals, increasedby $3.06 million (9.2%) from the prior year. In governmental activities, capital assetsincreased by $1.17 million (7.8%) while business-type activities increased by $1.90 million(10.3%).
The following table summarizes the City’s capital assets at the end of the year.
Table 7
Capital Assets
(in Thousands)
Government Activities Business-Type Activities Total
2024 2023 2024 2023 2024 2023
Capital assets, non-depreciable:
Land $ 2,853 $ 2,853 $ - $ - $ 2,853 $ 2,853
Construction in progress 2,568 1,397 1,657 1,549 4,225 2,946 Total non-depreciable assets $ 5,421 $ 4,250 $ 1,657 $ 1,549 $ 7,078 $ 5,799 Capital assets, net of depreciation:
Building end improvements $ 4,580 $ 4,780 $ 2,287 $ 2,155 $ 6,867 $ 6,935 Improvements other than buildings 5,203 5,587 11,357 10,220 16,560 15,807 Machinery and equipment 908 330 1,649 955 2,557 1,285Infrastructure - - 3,437 3,611 3,437 3,611 Total depreciable assets $ 10,691 $ 10,697 $ 18,730 $ 16,941 $ 29,421 $ 27,638Total capital assets, net $ 16,112 $ 14,947 $ 20,387 $ 18,490 $ 36,499 $ 33,437 19 Capital outlays for governmental activities include $2.57 million for construction in progress, with $1.17 million added to construction in progress during the fiscal year ended June 30, 2024. Construction in progress includes $529 thousand expended to stabilize the hillsideunder the stairway on Crescent Avenue, which has been eroding due to the unprecedented amounts of precipitation and increased wind events over the last two fiscal years. The project involves the installation of tieback anchors, waler beams, underdrains, and concrete lagging walls to retain the remaining exposed wall backfill, provide sub-terrain drainage, and restore the hillside area with an engineered backfill for erosion control. The project is anticipated to be completed during the fiscal year ending June 30, 2025. Other construction in progressincludes the Five Corners Pedestrian Improvement project, a complete streets improvement to the intersections of Tremont Street, Avalon Canyon Road, Country Club Drive, and Sumner Avenue, with total construction in progress of $816 thousand for the project. The project is expected to begin construction during the fiscal year ending June 30, 2025 and to becompleted during the fiscal year ending June 30, 2026.
Capital asset additions during the fiscal year, totaling $952 thousand, include the acquisitionof an ambulance for $249 thousand, the acquisition of a skid steer loader with attachments for $135 thousand, the installation of a new audio/visual (AV) system in the Council Chambers for $125 thousand, the installation of new sidewalk curb ramps within the City totaling $214thousand, and other vehicle and other vehicle and equipment replacement totaling $229thousand. The decrease in net depreciable assets for buildings, and improvements other than buildings was the result of depreciation slightly exceeding new capital investments in depreciable assets.
Capital outlays for business-like activities include $1.66 million for construction in progress for a net increase of $108 thousand after the completion of several multi-year projects during the fiscal year ended June 30, 2024. Harbor projects account for the majority of construction in progress with $712 thousand expended over the last five fiscal years for the second phase of the Cabrillo Mole Ferry Terminal Rehabilitation project and $463 thousand towards the rehabilitation of the Green Pier. Construction in progress also includes $181 thousand inpermitting and engineering for the construction of a retaining wall at the Pebbly Beach Landfill.
The new retaining wall is being designed to increase the capacity of the landfill in order to extend the remaining useful life.Completed harbor projects include the installation of a new above-ground 12,000 gallon fuel tank to replace the existing underground fuel tank for a total project cost of $1.45 million and improvements to the City’s end float for a total project cost of $177 thousand. Sewer projects include the installation of a new screw press system to facilitate the processing of solid waste at the wastewater treatment plant (WWTP) for a total project cost of $135 thousand, the rehabilitation of the WWTP’s soffit and chlorine contact tank for $229 thousand, and the acquisition of a new mobile generator for $95 thousand. Lastly, the City continued itsinvestment in transit operations with the acquisition of two electric passenger vans for $204 thousand to complement the fleet of six passenger electric vehicles which were delivered and placed into service during the fiscal year ended June 30, 2024. Additional information on capital asset activity is described in the notes to the financial statements, Note 4. 20 Long-Term Debt and Other Noncurrent Liabilities
During the fiscal year, noncurrent liabilities decreased by $314 thousand or 1.2°k to $26.65 million. Noncurrent liabilities include compensated absences, which reflect the accumulated balance of sick and vacation leave for active employees, claims payable from general liability and workers compensation claims, the City’s landfill closure and post-closure obligations, net pension liability, and net OPEB liability. The City previously had a capital lease liability related to the installation of an artificial surface at Joe Machado Field with the final payment made during the fiscal year ended June 30, 2024.
The following table summarizes the City’s debt at the end of the year:
Table 8
Long-Term Debt and Noncurrent Liabilities
(in Thousands)
Governmental Activities Business-Type Activities Total
2024 2023 2024 2023 2024 2023
Description:
Compensated Absences $ 493 $ 472 $ 319 $ 309 $ 812 $ 781Claims Payable 72 84 25 25 97 109 Capital Lease Liability - 94 - - - 94
Landfill Closure Obligation - - 5,676 5,426 5,676 5,426Net OPEB Liability 4,169 5,046 2,374 2,911 6,543 7,957Net Pension Liabihty 8,250 7,601 5,276 5,000 13,526 12,601 Total Long-Term Liabilities $ 12,984 $ 13,297 $ 13,670 $ 13,671 $ 26,654 $ 26,968 Compensated absences increased by $21 thousand for governmental activities and by $10 thousand for business-type activities, with $320 thousand estimated to be due within oneyear for governmental activities and $207 thousand for business-type activities.
Landfill closure obligations of $5.68 million account for 21.3% of the City’s noncurrentliabilities. The City has an established trust fund to set aside funding to meet its closure andpost-closure obligations with $3.29 million in the fund as of June 30, 2024. Based on current estimates, the Pebbly Beach Landfill has a remaining life of approximately three years. As previously noted, the City is working to expand the height of the landfill and extend its usefullife, reducing the existing landfill closure obligation.
Net OPEB liabilities of $6.54 million account for 24.5% of the City’s noncurrent liabilities. Net OPEB liabilities decreased by $1.41 million (17.8%) driven by actuarial changes inassumptions and differences between expected and actual experience. The City currently funds these obligations as they become due.
Net pension liabilities of $13.53 million account for 50.7% of the City’s noncurrent liabilities.
When the total pension liability, which is the obligation to pay deferred pension benefits in the future exceeds the pension plan’s assets, there is a net pension liability, also referred to as an unfunded accrued liability (UAL). As required for participation in the California Public Employees’ Retirement System (CaIPERS), the City has made the minimum required employer contribution towards the UAL amortizing the liability over a twenty (20) year period. Additional 21 information on the City’s pension plan is described in the notes to the financial statements, Note 6.Budgetary Highlights — Major Governmental Funds
A comparison of budget to actual for major governmental funds is presented in the Required Supplementary Information. These statements are presented to demonstrate that appropriations are being spent as authorized by the City Council and include both the originaladopted budget and the final budget with amendments.
The City’s General Fund is its primary source of discretionary resources for the provision of service deemed necessary and desirable by the citizens of Avalon and the City Council. The original budget estimated General Fund revenues of $20.86 million. Actual revenues in theGeneral Fund were $4.24 lower than was budgeted despite tax revenues exceeding budgetestimates by $1.39 million. The decrease in revenues compared to budget estimates wasattributable to intergovernmental revenues, which includes grant revenues, down $6.49 million from budget estimates. The City has continued to follow a conservative approach torevenue estimation when preparing the budget, treating the post-pandemic increases as outliers from historical trends, and adjusted appropriations accordingly. The decrease in intergovernmental revenues is due to grant-funded reimbursements for capital expenditures that were estimated to be incurred during the fiscal year but were delayed while additional grant funding opportunities were pursued.General Fund expenditures were $9.07 million lower than budget appropriations primarily due to capital expenditures $7.69 million below the final budgeted amounts. This difference was due to delays in the start of major capital projects, including the Five Corners PedestrianImprovement Project and Pebbly Beach Road improvements. General Government servicesand charges exceeded budgeted amounts by $27 thousand due to the contracted allocationof TOT funding to Love Catalina exceeding final budget estimates. Love Catalina receives 22%of the TOT collected by the City based on actual receipts which exceeded final budgetestimates. Similarly, General Government contract services exceeded budgeted amounts by $623 thousand due to add-on sales tax revenues passed through to Catalina Island Health to subsidize local hospital operations exceeding budget estimates by $70 thousand and the Measure.Local Transportation Fund reports activity from Proposition A Local Return Fund, Proposition C Local Return Fund, Measure M Local Return Fund, and Measure R Local Return Fund, collectively referred to as Local Return Funds, as well as Transportation Act Article 3 (TDA 3) Funds and Transportation Development Act Article 8 (TDA 8) Funds. The Local Return Funds are derived from various county-wide sales tax measures distributed to the City on either a population or per capita basis and must be used exclusively for transportation purposes. TDA3 and TDA 8 Funds are Special Revenue Funds from the State that are used by the City to fund public transportation. Revenues and expenditures reported a variance of $143 thousand and $144 thousand, respectively, due to actual Local Return revenues not meeting budgetestimates which were provided to the City by the Los Angeles County Metropolitan Transit Authority.
22 Lastly, variances between budgeted and actual amounts in the Avalon Housing Authority Fund are the result of investment income revenues exceeding budget estimates and capitalexpenditures less than budget estimates due to the timing of project construction.
Economic Outlook and Next Year’s Budget
The City of Avalon’s local economy is centered on travel and tourism. Consequently, the City’s revenues are strongly tied to the financial health of the economy as a whole and the average consumer’s ability and propensity for spending on leisure travel. The City’s local economy rebounded quickly after the pandemic, with strong visitor demand increasing average lodgingrates and other taxable sales activity, which in turn increased City tax revenues. The City was cautious in its approach to the sudden increase in visitor-driven tax revenues and gradually restored major capital outlays, staffing, and services that had been deferred or eliminated inresponse to the pandemic. As a result, the City has significantly increased its available cashbalances, particularly in the General Fund. At a national level, the Federal Reserve responded to this post-pandemic inflation by raising short term interest rates in 2022 and 2023. The City benefitted from these increases in rates with meaningful investment earnings during the last fiscal year despite visitor-driven tax revenues levelling off from post-pandemic peaks.
While it is expected that the Federal Reserve will continue to lower interest rates through the next year, the City anticipates another year of strong investment earnings while visitor-driven revenues continue to plateau, albeit well above pre-pandemic levels. Similar to its treatment of the post-pandemic increases in visitor-driven revenues, the City has been prudent in its treatment of investment earnings and is not reliant on similar investment returns to fund its operating costs in the adopted budget. The adopted budget for the next fiscal year estimates General Fund revenues to be up 3.0% from the Fiscal Year 2023-2024 budget. The increase in estimated revenues is largely attributable to TOT, which was budgeted at $7.50 million in Fiscal Year 2024-2025 compared to $7.00 million budgeted and $7.87 million actual in Fiscal Year 2023-2024. The City has continued to take advantage of this period of economic recovery to rebuild its unrestricted fund balance. While a portion of these unrestricted funds will likely be used to fund future planned capital outlays, the City will maintain its unassigned fund balance of at least 50% of its General Fund operating budget in compliance with its existingreserve policy levels.
The City has a number of major capital projects anticipated to begin construction during the Fiscal Year 2024-2025. The projects address the rehabilitation of several existing structures in the City and along the waterfront, including the Green Pleasure Pier and the Cabrillo Mole Ferry Terminal. The City has been successful in its pursuit of additional grants at the state and federal level to offset the significant construction costs further complicated by the City’s unique geographic location. These projects focus on improving the climate resiliency of criticalinfrastructure and enhancing the City’s multi-modal transportation opportunities through sidewalk and intersection improvements and improvements to transit facilities. 23 Contacting the City’s Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s fiduciary responsibility for the funds it receives. If you have questions about this report or need additional financial information, please contact the City’s Finance Department at:
City of Avalon
Attn: Finance Department
410 Avalon Canyon Road
P.O. Box 707
Avalon, CA 90704
24 BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
THE STATEMENT OF NET POSITION AND THE STATEMENT ACTIVITIES The Statement of Net Position and the Statement of Activities, present information about the following:
Governmental Activities — The City’s basic services are considered to be governmental activities, including (1) public safety, (2) fire and ambulance, (3) planning, building and engineering, (4) community services, (5) public works, and (6) general government. Property taxes, sales taxes and transient occupancy taxes finance most of these activities.
Business-tyne Activities — The City’s proprietary funds are considered to be business-type activities,including (1) harbor, (2) sewer, (3) saltwater, (4) solid waste, and (5) Avalon transit. 25 CITY OF AVALON
Statement of Net Position
June 30, 2024
(With comparative information for the prior year)
Primary Government
Totals
Governmental Business-type
Activities Activities 2024 2023
Assets:
Current assets:
Cash and investments (note 2) $ 22,795,546 9,323,938 32,119,484 26,448,822 Restricted cash and investments (note 2) - 3,287,429 3,287,429 2,907,134Receivables net:
Accounts 88,568 731,836 820,404 1,078,448
Taxes 3,152,391 196,301 3,348,692 3,406,862
Grants 214,363 - 214,363 260,157Interest 147,234 56,663 203,897 155,211 Due from ACIA Successor Agency 6,043 - 6,043 6,043Notes receivable 292,000 - 292,000 292,000Leases (note 13) 284,586 1,442,031 1,726,617 2,038,406 Internal balances 167,494 (167,494) - - Prepaid items 224,662 24,083 248,745 697,249 Noncurrent assets (note 4):
Capital assets, not being depreciated 5,421,015 1,656,518 7,077,533 5,797,997Capital assets, net of accumulated depreciation 10,690,932 18,730,918 29,421,850 27,638,566 Total assets 43,484,834 35,282,223 78,767,057 70,726,895 Deferred outflows of resources:
Deferred outflows - pension related (note 6) 2,728,489 1,744,990 4,473,479 4,627,720 Deferred outflows - OPEB related (note 7) 808,162 460,144 1,268,306 1,647,840 Total deferred outflows of resources 3,536,651 2,205,134 5,741,785 6,275,560 Liabilities:
Current liabilities:
Accounts payable 1,610,508 1,015,148 2,625,656 2,224,832 Interest payable 557 - 557 2,154
Accrued liabilities 248,290 67,262 315,552 279,060
Unearned revenue - 2,237,456 2,237,456 163,442Other liabilities (note 5) - 25,000 25,000 25,000 Noncurrent liabilities:
Due within one year (note 5) 320,624 207,294 527,918 601,444Due in more than one year 244,946 136,620 381,566 382,332 Landfill closure obligation - 5,676,346 5,676,346 5,425,880Net pension liability (note 6) 8,249,712 5,276,057 13,525,769 12,600,550Net OPEB liability (note 7) 4,169,412 2,373,944 6,543,356 7,956,970 Total liabilities 14,844,049 17,015,127 31,859,176 29,661,664 Deferred inflows of resources:
Deferred inflows - pension related (note 6) 1,117,358 714,599 1,831,957 2,252,565Deferred inflows - OPEB related (note 7) 2,470,959 1,406,893 3,877,852 3,019,965Deferred inflows - lease related (note 13) 281,458 1,397,249 1,678,707 2,000,321 Total deferred inflows of resources 3,869,775 3,518,741 7,388,516 7,272,851 Net position:
Net investment in capital assets 15,830,489 18,990,187 34,820,676 33,342,754Restricted for:
Low and moderate income housing 5,631,868 - 5,631,868 5,543,878Capital Projects 128,759 - 128,759 118,561 Transportation 356,194 - 356,194 264,620
Hospital 1,098,658 - 1,098,658 326,807
Unrestricted 5,261,693 (2,036,698) 3,224,995 471,320
Total net position $ 28,307,661 16,953,489 45,261,150 40,067,940 See accompanying notes to the financial statements
26 CITY OF AVALON
Statement of Activities
Year ended June 30, 2024
(With comparative information for the prior year)
Program Revenue
Charges Operating Capital
for Grants and Grants and
Functions/programs Expenses Services Contributions Contributions Governmental activities:
Public safety $ 2,359,953 283,537 - - Fire and ambulance 3,256,894 530,886 - - Planning, building and engineering 879,764 130,858 266,689 - Community services 1,137,573 69,877 - 105,519Public works 2,289,804 46,843 212,043 - Transportation 1,399,298 - 1,405,504 - General government 4,249,294 50,383 1,740,329 - Total governmental activities 15,572,580 1,112,384 3,624,565 105,519 Business-type activities:
Harbor 8,299,465 9,075,929 419,960
Sewer 3,213,285 3,235,249 - Saltwater 823,082 880,317 - Solidwaste 2,805,109 2,777,545 12,584 Avalon transit 354,128 88,368 - -
Total business-type activities 15,495,069 16,057,408 432,544 - Total $ 31,067,649 17,169,792 4,057,109 105,519
General revenues:
Taxes:
Property taxes
Sales taxes
Transient occupancy taxes
Other taxes
Licenses and permits
Investment earnings (loss)
Miscellaneous income
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year - as restated (see note 14)Net position, end of year See accompanying notes to the financial statements
27 Net (Expense) Revenue and Changes in Net Position
Primary Government
Totals
Governmental Business-type
Activities Activities 2024 2023
(2,076,416) - (2,076,416) (1,852,482)(2,726,008) - (2,726,008) (2,322,402) (482,217) - (482,217) (441,816)(962,177) - (962,177) (937,256) (2,030,918) - (2,030,918) (1,502,298)
6,206 - 6,206 304,224
(2,458,582) (2,458,582) (2,834,631)
(10,730,112) (10,730,) (9,586,661) - 1,196,424 1,196,424 1,432,823 - 21,964 21,964 275,952 - 57,235 57,235 221,812 - (14,980) (14,980) 190,215- (265,760) (265,76Q) (158,596)- 994,883 994,883 1,962,206 (10,730,112) 994,883 (9,735,229) (7,624,4)
1,107,714 - 1,107,714 1,027,608
2,191,035 - 2,191,035 2,219,7307,868,506 - 7,868,506 8,318,815 1,580,145 205,574 1,785,719 1,726,183
4,433 - 4,433 8,028
1,138,192 406,875 1,545,067 207,118
126,912 460,230 587,142 185,461
(288,802) 288,802 - - 13,728,135 1,361,481 15,089,616 13,692,943 2,998,023 2,356,364 5,354,387 6,068,488
25,309,638 14,597,125 39,906,763 33,999,452
$ 28,307,661 16,953,489 45,261,150 40,067,940
See accompanying notes to the financial statements
28 GOVERNMENTAL FUND FINANCIAL STATEMENTS
GENERAL FUND
The General Fund has been classified as a major fund and is used to account for resources traditionally associated with governments which are not required legally or by sound financial management to be accounted for in another fund.
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose. The following funds have been classified as major funds:
Local TransiJortation — This fund is used to record allocations made by the Los Angeles County Transportation Commission for the construction of streets, roads, bikeways, pedestrian facilities as well as the City’s transportation system as a whole.
Avalon Housincj Authority — This fund is used to account for the activity associated with the City’s continuing housing operations. This fund was created effective February 1, 2012 as a result of legislation enacted by the State of California.
NONMAJOR FUNDS
Nonmajor Funds are the aggregate of all the other governmental funds. 29 CITY OF AVALON
Balance Sheet
Governmental Funds
June 30, 2024
(With comparative information for the prior year)
Special Revenue Funds
Local
Transportation Avalon Housing
General Fund Fund Authority
Assets:
Cash and investments $ 15,371,097 5,304,298
Receivables, net:
Accounts 72,846 - 10,000
Taxes 1,898,768 1,135,753 -
Grants 214,363 - -
Interest 87,805 - 47,817
Notes receivable - - 292,000Leases - - 284,586
Prepaid expenses 198,876 - - Due from ACIA Successor Agency - - 6,043Due from other funds (note 3) 1,335,427 - - Advances to other funds (note 3) 64,344 - - Total assets $ 19,243,526 1,135,753 5,944,744 Liabilities:
Accounts payable $ 1,308,562 82,465 3,921
Accrued liabilities 170,439 - 997
Due to other funds (note 3) - 1,053,288 26,500
Total liabilities 1,479,001 1,135,753 — 31,418
Deferred inflows of resources:
Unavailable revenue 278,692 -
Leases - - 281,458
Total deferred inflows of resources 278,692 - 281,458
Fund balances:
Non-spendable:
Prepaid expenses 198,876 -
Restricted:
Low and moderate income housing - 5,631,868
Capital projects - -
Street projects - -
Hospital 1,098,658 - Unassigned 16,188,299 -
Total fund balances 17,485,833 - 5,631,868Total liabilities, deferred inflows of resources and fund balances $ 19,243,526 1,135,753 5,944,744 See accompanying notes to the financial statements
30 Totals
Non major
Governmental
Funds 2024 2023
461,906 21,137,301 18,979,329
5,722 88,568 76,567
117,870 3,152,391 3,255,290 - 214,363 214,363
2,528 138,150 116,462
- 292,000 292,000 - 284,586 368,782- 198,876 330,616- 6,043 6,043- 1,335,427 747,871 - 64,344 126,652 588,026 26,912,049 24,513,975
12,137 1,407,085 1,550,407
3,642 175,078 153,313
91,639 1,171,427 747,871
107,418 2,753,590 2,451,591
91,639 370,331 229,214
- 281,458 368,766
91,639 651,789 597,980 - 198,876 330,616
- 5,631,868 5,543,878
128,759 128,759 118,561
356,194 356,194 264,620 - 1,098,658 308,564
(95,984) 16,092,315 14,898,165
388,969 23,506,670 21,464,404588,026 26,912,049 24,513,975 See accompanying notes to the financial statements
31 CITY OF AVALON
Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Fund balances of governmental funds $ 23,506,670
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Capital assets 34,910,709
Accumulated depreciation (19,278,607)
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue inthe funds. 370,331 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds.
Compensated absences (493,267)
Interest payable (557)
Net pension and OPEB liabilities and related deferred outflows and inflows of resources are not due and payable in the current period and, therefore are not reported in the governmental funds.
Deferred outflows - pension 2,637,500Deferred inflows - pension (1,080,097) Net pension liability (7,974,599)Deferred outflows - OPEB 808,162Deferred inflows -OPEB (2,470,959) Other post employment benefits (4,169,412)
Internal service funds are used by management to charge the costs of employee benefits, liability insurance and vehicle maintenanceto individual funds. The assets and liabilities of the internalservice funds are included in governmental activities in theStatement of Net Position. 1,602,637 Internal service fund receivables/payables representing the cumulative crossover effect of involvement with business-type activities. (60,850) Net position of governmental activities $ 28,307,661
See accompanying notes to the financial statements
32 CITY OF AVALON
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Year ended June 30, 2024
(With comparative information for the prior year)
Special Revenue Funds
Local
Revenues:
General Fund
Transportation
Fund
Avalon Housing
Authority
Taxes
Licenses, permits, and feesFines, forfeitures, and penalties Investment income (loss)Intergovernmental revenueCharges for services Other revenue
Total revenues
218,833
5,411
224,244
Expenditures:
Current:
Public safetyFire and ambulancePlanning, building and engineering Community services
Public works
Transportation
General government:
Services and chargesContract servicesSpecial departmental Capital expenditures
Debt service:
Principal
Interest
Total expenditures
2,369,144
3,272,310
813,847889,023
1,441,258
1,399,298
2,204,403 - -
1,502,402 - 22,494
27,508 - -
1,590,563 - 50,187
93,809 - 2,711 - 14,206,978 1,399,298
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses):
Transfers in (note 3)Transfers out (note 3)
Total other financing sources (uses)
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
2,406,827
24,550
(474,761)(450,211)
1,956,616
15,529,217
$ 17,485,833
6,206
(6,206)
(6,206)
85,299
85,299
5,546,569
5,631,868
See accompanying notes to the financial statements
$ 12,992,345 -
366,856 - 12,592 - 846,281 -
1,628,048 1,405,504
655,990 -
111,693 - 16,613,805 1,405,504
12,432
53,832
138.945
33 Totals
Non major
Governmental
Funds 2024 2023
187,259 13,179,604 13,475,318
- 366,856 510,508
107,452 120,044 110,587
14,966 1,080,080 11,051
105,519 3,139,071 2,647,178
- 655,990 627,374
5,710 122,814 237,616
420,906 18,664,459 17,619,632
- 2,369,144 2,108,816- 3,272,310 2,874,513 - 826,279 999,363- 942,855 885,241 340,418 1,781,676 1,420,470
- 1,399,298 1,722,455- 2,204,403 2,231,907
26,190 1,551,086 1,134,578
7,777 35,285 40,150
213,785 1,854,535 466,636
- 93,809 130,527- 2,711 6,483
588,170 16,333,391 14,021,139
(167,264) 2,331,068 3,598,493
185,959 210,509 133,230
(18,344) (499,311) (818,699)
167,615 (288,802) (685,469)
351 2,042,266 2,913,024
388,618 21,464,404 18,551,380388,969 23,506,670 21,464,404 See accompanying notes to the financial statements
34 CITY OF AVALON
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year ended June 30, 2024
Net changes in fund balances - total governmental funds $ 2,042,266 Amounts reported for governmental activities in the statement of activities is different because:
Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over theirestimated useful lives as depreciation expense. This is the amount by whichcapital outlays exceeded depreciation in the current period.
Capital outlay 1,757,463
Depreciation expense (886,208)
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debtand changes in other long-term liabilities affect the current financial resourcesof governmental funds. None of these transactions, however, has any affecton net position:
Principal payments 93,809
Change in interest payable on capital leases 1,597Change in compensated absences (21,014)Change in OPEB obligation and related amounts 84,705Change in net pension liability and related amounts (444,151) Some revenues reported in the Statement of Activities are not considered to be available to finance current expenditures and therefore are not reported as revenues in the governmental funds. 141,117
Internal service funds are used by management to charge the costs of self-insurance, employee separation costs and vehicle maintenance to individual funds. The net revenue of certain activities of internal service fundsis reported with governmental activities. 435,691 Internal service fund revenues/expenses representing the cumulative crossover effect of involvement with business-type activities. (207,252) Change in net position of governmental activities $ 2,998,023 See acCompanying notes to the financial statements
35 PROPRIETARY FUND FINANCIAL STATEMENTS
Harbor — This fund was established to account for all harbor operations.
Sewer — This fund was established to receive and disburse funds collected through sewer service charge fees and sewer facilities charges. This fund is used for the operation and maintenance ofsewer disposal facilities and the financing of construction for sewer outlets.
Saltwater — This fund was established to receive charges for operation of the City’s saltwater pumping plants and systems.
Solidwaste — This fund was established to account for solid waste collection and disposal costs.
Avalon Transit — This fund was established to account for the City’s fixed route, dial-a-ride, ferry commuter subsidy, and other transportation operations.Internal Service Funds — These funds are used to account for the financing of goods and services provided by one or more departments to other departments of the City and to other government units, on a cost reimbursement basis.
36 CITY OF AVALON
Statement of Net Position
Proprietary Funds
June 30, 2024
(With comparative information for the prior year)
Business-type Activities
Harbor Sewer Saltwater
Assets:
Current assets:
Cash and investments $ 5,040,795 1,668,184 819,022
Restricted cash and investments - - - Receivables, net:
Accounts 731,836 - - Taxes 25,724 82,420 21,842
Leases 1,442,031 - - Interest 29,738 10,816 4,520
Grants receivable - - - Prepaid expenses 24,083 - - Total current assets 7,294,207 1,761,420 845,384 Noncurrent assets:
Capital assets, not being depreciated 1,367,814 107,709 -Capital assets, net of accumulated depreciation 12,951,219 3,832,161 1,293,189
Total noncurrent assets 14,319,033 3,939,870 1,293,189Total assets 21,613,240 5,701,290 2,138,573 Deferred outflows of resources:
Deferred outflows - pension related 1,526,701 128,209 90,080 Deferred outflows - OPEB related 385,488 43,541 31,115
Total deferred outflows of resources 1,912,189 171,750 121,195 Liabilities:
Current liabilities:
Accounts payable 439,183 277,425 62,529Accrued liabilities 58,001 4,873 3,513 Unearned revenue 2,136,462 - - Other liabilities - 25,000 - Due to other funds (note 3) - - - Current portion of noncurrent liabilities 186,361 11,636 8,378 Total current liabilities 2,820,007 318,934 74,420
Noncurrent liabilities:
Compensated absences 100,348 6,266 4,511
Advances from other funds (note 3) - 46,873 17,471
Net pension liability 4,616,048 387,644 272,365
OPEB obligation 1,988,783 224,633 160,528Claims payable - 25,000 - Landfill closure obligation (note 11) - - - Total noncurrent liabilities 6,705,179 690,416 454,875 Total liabilities 9,525,186 1,009,350 529,295
Deferred inflows of resources:
Deferred inflows - pension related 625,206 52,503 36,890Deferred inflows - OPEB related 1,178,632 133,126 95,135Deferred inflows - lease related 1,397,249 - - Total deferred inflows of resources 3,201,087 185,629 132,025 Net position:
Investment in capital assets 12,921,784 3,939,870 1,293,189Unrestricted (2,122,628) 738,191 305,259 Total net position $ 10,799,156 4,678,061 1,598,448
Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time Net position of business-type activities
See accompanying notes to the financial statements
37 Governmental Activities - Business-type Activities Total Enterprise Funds Inlernal Service Funds Solidwaste Avalon Transit 2024 2023 2024 2023
1,795,937 - 9,323,938 6,181,222 1,658,245 1,288,271
3,287,429 - 3,287,429 2,907,134 - - -
- 731,836 1,001,881 - - 66,315 - 196,301 151,572 - - -- 1,442,031 1,669,624 - - 11,589 - 56,663 30,726 9,084 8,023 - - - 45,794 - - - - 24,083 257,136 25,786 109,497 5,161,270 - 15,062,281 12,245,089 1,693,115 1,405,791
180,995 - 1,656,518 1,548,701 - - 167,296 487,053 18,730,918 16,941,360 479,845 185,655 348,291 487,053 20,387,436 18,490,061 479,845 185,655
5,509,561 487,053 35,449,717 30,735,150 2,172,960 1,591,446 - - 1,744,990 1,836,257 90,989 88,232 - - 460,144 603,455 - - - - 2,205,134 2,439,712 90,989 88,232 225,571 10,440 1,015,148 595,484 203,423 78,941
369 506 67,262 59,135 73,212 66,612
100,994 - 2,237,456 163,442 - - -
- 25,000 25,000 - - - 164,000 164,000 - - - 919 - 207,294 200,671 - - 327,853 174,946 3,716,160 1,043,732 276,635 145,553 495 - 111,620 108,055 - - -
- 64,344 126,652 - - -- 5,276,057 4,999,840 275,113 240,244 - - 2,373,944 2,910,857 - - -- 25,000 25,000 72,303 83,988 5,676,346 - 5,676,346 5,425,880 - - 5,676,841 - 13,527,311 13,596,284 347,416 324,232 6,004,694 174,946 17,243,471 14,640,016 624,051 469,785 - - 714,599 893,808 37,261 42,947 - - 1,406,893 1,104,779 - - - - 1,397,249 1,631,555 - - -- 3,518,741 3,630,142 37,261 42,947 348,291 487,053 18,990,187 18,490,061 479,845 185,655
(843,424) (174,946) (2,097,548) (3,585,357) 1,122,792 981,291(495,133) 312,107 16,892,639 14,904,704 1,602,637 1,166,946 60,850 (146,402)
$ 16,953,489 14,758,302
See accompanying notes to the financial statements
38 CITY OF AVALON
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
Year ended June 30, 2024
(With comparative information for the prior year)
Business-type Activities
Harbor Sewer Saltwater
Operating revenues:
Charges for services $ 9,075,929 3,235,249 880,317Other revenue 443,170 - - Total operating revenues 9,519,099 3,235,249 880,317 Operating expenses:
Salaries and benefits 4,455,029 641,762 409,901
Contractual services 1,232,411 1,759,783 359,582Office supplies 9,163 - Utilities and rent 541,240 214,330 - Repairs and maintenance 486,215 91,860 11,156 Operating supplies 393,816 2,174 1,265
Other services and charges 639,345 98,680 830
Depreciation 661,799 435,979 50,952
Total operating expenses 8,419,018 3,244,568 833,686
Operating income (loss) 1,100,081 (9,319) 46,631
Nonoperating revenues (expenses):
Admissions taxes 205,574 - - Loss on disposal of capital assets (3,226) - - Grants and other revenues 419,960 - - Interest income 161,014 64,028 27,322 Interest expense - (3,013) (1,123)
Total nonoperating revenues
(expenses) 783,322 61,015 26,199
Income (loss) before capital contributions
and transfers 1,883,403 51,696 72,830
Transfers in (note 3) - -
Total transfers -
Changes in net position 1,883,403 51,696 72,830
Net position, beginning of year - as restated (see note 14) 8,915,753 4,626,365 1,525,618Net position, end of year $ 10,799,156 4,678,061 1,598,448 Adjustment for the net effect of current year activity between the internal service funds and the enterprise funds.
Change in net position of business-type activities
See accompanying notes to the financial statements
39 Governmental Activities - Business-type Activities Total Enterprise Funds Internal Service Funds Solidwaste Avalon Transit 2024 2023 2024 2023
2,777,545 88,368 16,057,408 15,741,570 4,643,546 3,92g,814 17,060 - 460,230 3,71g - -
2,794,605 88,368 16,517,638 15,745,28g 4,643,546 3,929,814 244,297 157,536 5,908,525 5,376,010 2,112,703 1,894,537 2,504,933 30,814 5,887,523 5,094,644 715,833 749,903 - 4,167 13,330 7,572 69,534 62,470 13,686 - 769,256 834,246 201,985 180,530 - 1,190 590,421 627,823 182,649 117,300 - - 397,255 440,907 82,306 54,409 14,348 123,566 876,769 598,688 823,972 710,371
46,463 56,687 1,251,880 1,131,381 72,703 73,365
2,823,727 373,960 15,694,959 14,111,271 4,261,685 3,842,885 (285,592) 822,679 1,634,018 381,861 86,929
- - 205,574 231,644 - - - (3,226) (5,826) - (3,328)
12,584 - 432,544 296,603 - - 154,511 - 406,875 135,665 53,830 29,047 - (4,136) (6,107) - - 167,095 - 1,037,631 651,979 53,830 25,719 137,973 (285,592) 1,860,310 2,285,997 435,691 112,648 - 288,802 288,802 685,469 - - 288,802 288,802 685,469 137,973 3,210 2,149,112 2,971,466 435,691 112,648
(633,106) 308,897 1,166,946 1,054,298(495,133) 312,107 — 1,602,637 1,166,946 207,252 47,237
$ 2,356,364 3,018,703
See accompanying notes to the financial statements
40 CITY OF AVALON
Statement of Cash Flows
Proprietary Funds
Year ended June 30, 2024
(With comparative information for the prior year)
Harbor Sewer Saltwater
Cash Flows from Operating Activities:
Cash received from customers $ 10,429,892 3,208,803 872,373Cash received from interfund services provided - - -Cash payments to suppliers for goods and services (3,017,621) (2,127,113) (324,608)Cash payments to employees for services (2,636,432) (641,40) (352,425) Net cash provided by operating activities 4,775,839 440,287 195,340 Cash Flows from Noncapital Financing Activities:
Cash received from admissions taxes 205,574 - - Cash received from leases 227,859 - - Cash paid to other funds - (45,390) (16,918)Cash received from other funds - - - Net cash provided by noncapital financing activities 433,433 (45,390) (16,918) Cash Flows from Capital and Related Financing Activities:
Cash payments to acquire capital and other assets (2,083,095) (626,956) (31,625)Cash received for capital grants 45,794 - - Interest paid on capital-related debt - (3,013) (1,123) Net cash provided by capital and related financing (2,037,301) (629,969) (32,748) activities
Cash Flows from Investing Activities:
Interest received on investments 137,926 63,226 26,172
Net cash provided by investing activities 137,926 63,226 26,172Net increase (decrease) in cash and cash equivalents 3,309,897 (171,846) 171,846 Cash and cash equivalents - beginning 1,730,898 1,840,030 647,176Cash and cash equivalents - ending $ 5,040,795 1,668,184 819,022 Reconciliation of Operating Income (loss) to Net Cash
Provided by Operating Activities
Operating income (loss) $ 1,100,081 (9,319) 46,631
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation 661,799 435,979 50,952
Other Income 419,960 - - Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable 263,386 1,185 - (Increase) decrease in taxes receivable 14,166 (27,631) (7,944)(Increase) decrease in prepaid items 213,281 10,235 7,420(Increase) decrease in deferred outflows 208,575 25,172 831 Increase (decrease) in accounts payable 278,975 27,994 39,406Increase (decrease) in accrued liabilities 5,594 1,485 1,399Increase (decrease) in other liabilities - - - Increase (decrease) in compensated absences 5,274 3,107 3,972Increase (decrease) in OPEB obligation (481,871) (46,718) (8,324)Increase (decrease) in unearned revenue 2,001,598 - - Increase (decrease) in net pension liability 236,172 4,628 35,417Increase (decrease) in deferred inflows (151,151) 14,170 25,580 Increase (decrease) in due to other funds - - -Increase (decrease) in landfill closure obligation - - - Increase (decrease) in claims payable Net Cash Provided by Operating Activities $ 4,775,839 440,287 195,340 Significant non-cash transactions
Landfill closure cost amortization $ - See accompanying notes to the financial statements 41 Governmental Activities - Total Enterprise Funds Internal Service Funds Solidwaste Avalon Transit 2024 2023 2024 2023
2,776,759 88,428 17,376,255 16,334,757 - - - - -
- 4,643,546 3,929,814
(2,371,296) 4,711 (7,835,927) (7,390,377) (1,883,484) (2,018,053) (171,881) (157,536) (3,959,677) (5,852,891) (2,075,964) (1,911,631) 233,582 (64,397) 5,580,651 3,091,489 684,098 130
- 205,574 231,644 - - 227,859 423,931 -- (62,308) (60,337) - - - 288,802 288,802 685,469 288,802 659,927 1,280,707
(186,400) (224,405) (3,152,481) (1,679,431) (366,893) (6,989) 12,584 - 58,378 31,167 - - - (4,136) (6,107) - -
(173,8)) (224,405) (3,098,239) (1,654,371) (366,893) (6,989) 153,348 — - 380,672 109,322 52,769 22,855
153,348 - 380,672 109,322 52,769 22,855
213,114 - 3,523,011 2,827,147 369,974 15,996
4,870,252 - 9,088,356 6,261,209 1,288,271 1,272,275
5,083,366 12,611,367 9,088,356 1,658,245 1,288,271
(29,122) (285,592) 822,679 1,634,018 381,861 86,929
46,463 56,687 1,251,880 1,131,381 72,703 73,365
- - 419,960 294,840 - - 5,474 - 270,045 369,466 - - (23,320) - (44,729) 148,302 - - 894 1,223 233,053 (243,051) 83,711 (109,497) - - 234,578 (1,263,008) (2,757) (58,152)
(87,113) (775) 258,487 (47,981) 124,482 (26,668)
(411) 60 8,127 19,439 6,600 13,247
(2,165) - 10,188 43,306 - -
- - (536,913) (485,037) - - 72,416 - 2,074,014 (57,778) - (78,336)- - 276,217 2,516,316 (5,686) 113,549 - - (111,401) (1,229,295) 34,869 - - 164,000 164,000 - - - 250,466 - 250,466 260,571 - - - - - - (11,685) (14,307)
233,582 (64,397) 5,580,651 3,091,489 684,098 130
250,466 - 250,466 260,571 - -
See accompanying notes to the financial statements
42 CITY OF AVALON
Statement of Fiduciary Net Position
Private Purpose Trust Fund
June 30, 2024
(With comparative information for the prior year)
2024 2023
Assets:
Current assets:
Cash and investments (note 2) $ 2,264,258 2,268,464Interest receivable 280 187 Total current assets 2,264,538 2,268,651
Liabilities:
Current liabilities:
Due to other governments 6,043 6,043Interest payable 227,384 247,200 Current portion of long-term liabilities:
Bonds payable (note 5) 1,310,000 1,250,000
Bonds premium (note 5) 62,263 71,965
Total current liabilities 1,605,690 1,575,208
Long-term liabilities:
Bonds payable (note 5) 14,180,000 15,418,035
Bond premium (note 5) 237,379 372,605
Total long-term liabilities 14,417,379 15,790,640
Total liabilities 16,023,069 17,365,848
Net position:
Held in trust for successor agency (13,758,531) (15,097,197) Total net position (deficit) $(13,758,531) (15,097,197) See accompanying notes to the financial statements
43 CITY OF AVALON
Statement of Changes in Fiduciary Net Position
Private Purpose Trust Fund
Year ended June 30, 2024
(With comparative information for the prior year)
2024 2023
Additions:
Taxes $ 2,199,802 2,221,860
Investment income 16,867 5,851
Total additions 2,216,669 2,227,711
Deductions:
Community development 258,906 258,145
Interest 619,097 673,979
Total deductions 878,003 932,124
Change in net position 1,338,666 1,295,587
Net position, beginning of year (15,097,197) (16,392,784)Net position, end of year $ (13,758,531) (15,097,197) See accompanying notes to the financial statements
44 CITY OF AVALON
Notes to the Financial Statements
Year ended June 30, 2024
(1) Summary of Significant Accounting Policies
The basic financial statements of the City of Avalon, California, (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America.
The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below. (a) Descriijtion of the Reijortinci Entity
The City of Avalon was incorporated in 1913 under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following municipal services to its citizens: public safety (police and fire), harbor, streets, water sanitation, health and social services, public improvements, planning andzoning, and general administrative services.
The financial reporting entity presented in the accompanying basic financial statements consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance oftheir relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. (b) Basis of Accounting and Measurement Focus
Government-wide financial statements are presented using the economic resourcesmeasurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the government-wide financialstatements. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements.Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, andliabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from non-exchange transactions are recognized in accordance with therequirements of GASB Statement No. 33.
Government-wide Financial Statements
Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements includeseparate columns for the governmental and business-type activities of the primarygovernment (including its blended component units). Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenseshave not been allocated as indirect expenses to the various functions of the City. 45 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Program revenues include charges for services and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.
As a general rule the effect of interfund activity has been eliminated from the government-wide statements. Amounts paid to acquire capital assets have been reclassified as an addition to the related asset in the government-wide financial statements, rather than reporting them as expenditures. Proceeds of long-term debtare recorded as a liability in the government-wide financial statements, rather than another financing source. Amounts paid to reduce long-term indebtedness of the reportinggovernment are reported as a reduction of the related liability, rather than as anexpenditure.
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Theoperations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate.
Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Net position is classified in the following categories:
In the government-wide financial statements, net position is reported in one of three categories:
• Net Investment in Capital Assets — This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to theacquisition, construction, or improvement of capital assets. • Restricted Net Position — This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted Net Position — This amount is all net position that does not meet the definition of “Net Investment in Capital Assets” or “Restricted Net Position”. 46 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Fund Financial StatementsFund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. Thesestatements display information about major funds individually and nonmajor funds inthe aggregate for governmental and proprietary funds. Fiduciary statements includefinancial information for fiduciary funds and similar component units. Fiduciary funds ofthe City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.
Governmental FundsIn the fund financial statements, governmental funds are presented using the modifiedaccrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts werecollected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses a sixty day availability period. The City accrues the following revenue types: taxes, licenses, fines and forfeitures, and other miscellaneous revenues.
Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they arerecognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of available spendable resources.Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. 47 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Amounts expended to acquire capital assets are recorded as expenditures in the yearthat resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
Governmental Fund Balances
Fund balances are reported in the fund statements in the following classifications:
Nonspendable Fund Balance
Nonsoendable Fund Balance — this includes amounts that cannot be spent because they are either not spendable in form (such as inventory) or legally or contractually required to be maintained intact (such as endowments).
Spendable Fund Balance
Restricted Fund Balance — This includes amounts that can be spent only for specificpurposes stipulated by legal requirements imposed by other governments, externalresource providers, or creditors. City Council imposed restrictions do not createrestricted fund balance unless the legal document that initially authorized the revenue(associated with that portion of fund balance) also included language that specified thelimited use for which the authorized revenues were to be expended.
Committed Fund Balance — This includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (for example,resolution, ordinance, minutes action, etc.) that it employed to previously commit those amounts. If the Council action that limits the use of the funds was separate from theaction that initially created the revenues that form the basis for the fund balance, then the resultant fund balance is considered to be committed, not restricted. The City considers a resolution to constitute a formal action of the City Council for the purposesof establishing committed fund balance.
Assigned Fund Balance — This includes amounts that are intended to be used for specific purposes as indicated either by the Council or by persons to whom authority has been delegated to assign amounts for specific purposes. The City Council has not delegatedsuch authority as of the date of this report.
Unassigned Fund Balance — This includes the remaining spendable amounts which arenot included in one of the other classifications.
It is the City’s policy that restricted resources will be applied first, followed by (in orderof application) committed, assigned, and unassigned resources, in the absence of aformal policy adopted by the City Council. 48 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Proorietary and Fiduciary Funds
The City’s enterprise funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues arerecognized when they are earned, and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements presentincreases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as nonoperating expenses. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as another financing source.
Amounts paid to reduce long-term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as expenditure.
The private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.
(c) Major Funds and Fiduciary Fund Tyoes
The City reports the following major governmental funds:
General Fund — The General Fund is the general operating fund of the City. All general tax revenues and other receipts not allocated by law or contractual agreement to other funds are accounted for in this fund. Expenditures of this fund include general operating costs not paid through other funds.
Local Transiortation Fund — The Local Transportation Special Revenue Fund is used to record Measure R funds, Prop lB funds, and allocations made by the Los Angeles County Transportation Commission for the construction of streets, roads, bikeways, pedestrian facilities and the Citys transportation system. Separate annual audited financial statements from the Los Angeles County Metropolitan Transportation Authority (MTA) can be obtained from the City at www.cityofavalon.com/finance. 49 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Avalon Housing Authority Fund — The Avalon Housing Authority Fund is used to accountfor the activity of the City’s continuing housing operations. This fund was created effective February 1, 2012 in response to legislation enacted by the State of California to dissolve California Redevelopment Agencies. Separate Annual Housing Reports can be obtained from the City at www.cityofavalon.com/finance.
The City reports the following major enterprise funds:
Harbor Fund — The Harbor Fund is used to account for all harbor operations.
Sewer Fund — The Sewer Fund is used to receive and disburse funds collected through sewer service charge fees and sewer facilities charges. These funds are used for theoperation and maintenance of sewer disposal facilities and the financing of construction of outlet sewers.Saltwater Fund — The Saltwater Fund is used to receive charges for the operation of theCity’s saltwater pumping plants and systems.Solidwaste Fund — The Solidwaste Fund is used to account for solid waste collection anddisposal costs.
Avalon Transit Fund — The Avalon Transit Fund is used to account for the City’s fixed route, dial-a-ride, ferry commuter subsidy, and other transportation operations.
The City reports the following fund types:
Special Revenue Funds — Used to account for the proceeds of specific revenue sources that are legally restricted or otherwise designated for specific purposes.
Internal Service Funds — Used to account for the financing of goods and services provided by one or more departments or agencies to other departments or agencies of the City and to other government units, on a cost reimbursement basis.Additionally, the City reports the following fiduciary fund type:
Private Purpose Trust Fund — Used to account for the activities related to the Successor Agency to Avalon Community Improvement Agency (ACIA) and the revenue receivedfrom the Redevelopment Property Tax Trust Fund (RPTTF) to fund the recognized obligations of ACIA and administrative costs.
50 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) (d) Cash and Investments
The City pools cash and investments of all funds, except for assets held by fiscal agents.
Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.
Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.
For purposes of the statement of cash flow, cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.
(e) Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either due to/from other funds (i.e., the current portion of interfund loans) or advances to/from other funds (i.e., thenoncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmentwide financial statements as internal balances.
Externally related transactions are accounted for as revenue, expenditures, or expenses, as appropriate. Transactions that constitute reimbursements to a fund forexpenditures/expenses initially made from it that are properly applicable to another fundare recorded as expenditures/expenses in the reimbursed fund. All other interfundtransactions, except quasi-external transactions and reimbursements, are reported as transfers.
(f) Capital Assets and Depreciation
Capital assets, which consist of land, buildings and improvements, improvements other than buildings, machinery and equipment, vehicles, infrastructure, and construction in progress, are reported in the government-wide financial statements. Capital assets are defined by the City as assets with an initial cost of more than $5,000 and an estimated life in excess of one year; and infrastructure assets of more than $50,000. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. 51 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the government-wide statements. Depreciation is charged as an expense against operations, and accumulated depreciation is reported in the respective statement of net position. The ranges of estimated useful lives used for depreciation purposes for each capital asset class are as follows:
Buildings and improvements 20 - 50 years
Improvements other than buildings 5 - 20 years
Machinery and equipment 5 -20 years
Vehicles 5 - 20 years
Infrastructure 10 - 50 years
Right to use asset The estimated life of the lease asset or the contract term whichever is shorter.
(g) Compensated Absences
The City is obligated to compensate employees for all earned but unused vacation days accumulated. Liabilities for vacation, holiday benefits, sick pay and compensatory timeare recorded as earned by employees. City employees earn from 10 to 20 vacation dayseach year, depending upon length of service.In governmental funds, compensated absences (accumulated vacation, holiday benefits,sick pay and compensatory time) are recorded as an expenditure and a fund liability of the governmental fund that will pay them (primarily the General Fund), if they are expected to be liquidated with currently expendable available resources. The balanceof unpaid compensated absences is recorded as a long-term liability, as these amountswill be liquidated from future resources rather than currently expendable available resources upon retirement or separation of employment. The expenses for accumulated compensated absences are recorded in the General Administration Internal Service Fund. Unpaid compensated absences in proprietary funds are recorded as liabilities in those funds as vested benefits to the employees.
(h) Property Taxes
Property taxes are levied annually in July by the Los Angeles County Assessor for the succeeding fiscal year. Taxes are billed in August and are due and collectible in first andsecond installments on November 1 and March 1, respectively. The first installment is considered delinquent if not paid by December 10, and the second installment isconsidered delinquent if not paid by April 10 of each year. All unpaid taxes as of January 1 of the following year are considered delinquent and attach an enforceable lien on the related property on that date.
52 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Distributions of collected property taxes to the City are made by the County in accordance with the following schedule:
Secured:
35% of tax levy December5°h of tax levy January
Balance of first installment collections February
75% of adjusted tax, less previous remittance April
Balance of second installment collections MayBalance of collections for fiscal year July/August Unsecured:
80% of tax levy August
Balance of March - August collections October
September - December collections March
January -June collections August
(i) Deferred Outflows/Inflows of Resources
When applicable, the statement of net position and balance sheet will report a separatesection for deferred outflows of resources. Deferred outflows of resources representoutflows of resources (consumption of net position) that apply to future periods and that, therefore, are not recognized as an expense or expenditure until that time. The City has two items that qualify for reporting in this category, deferred outflow ofresources for pension and deferred outflow of resources for Other Post-Employment Benefits (“OPEB”).
When applicable, the statement of net position and the balance sheet will report aseparate section for deferred inflows of resources. Deferred inflows of resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as an inflow of resources (revenue) until that time. The City has four items that qualify for reporting in this category, deferred inflows — pension related, deferred inflows — OPEB related, deferred inflows — leases related, and unavailable revenue.
(j) Pensions
For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CaIPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value. CaIPERS audited financial statements are publiclyavailable reports that can be obtained at CaIPERS’ website under Forms and Publications. 53 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2022
Measurement Date (MD) June 30, 2023Measurement Period (MP) June 30, 2022 to June 30, 2023 (k) Other Post-Emoloyment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense and informationabout the plan (OPEB Plan), have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Generally accepted accounting principles require that the reported results mustpertain to liability information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date (VD) June 30, 2023
Measurement Date (MD) June 30, 2023Measurement Period (MP) June 30, 2022 to June 30, 2023 (I) Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and thelowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy are described as follows:
Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
54 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
• Quoted prices for similar assets or liabilities in active markets;• Quoted prices for identical or similar assets or liabilities in markets that are inactive;
• Inputs other than quoted prices that are observable for the asset or liability;• Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (includingassumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data. (m) Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities anddisclosure of contingent assets and liabilities at the date of the basic financial statementsand the reported amounts of revenues and expenditures during the reporting period.
Actual results could differ from those estimates.
(n) Prior Year Data
Selected information regarding the prior year has been included in the accompanying financial statements. This information has been included for comparison purposes only and does not represent a complete presentation in accordance with generally acceptedaccounting principles. Accordingly, such information should be read in conjunction with the government’s prior year financial statements, from which this selected financial data was derived. In addition, certain minor reclassifications of the prior year data have been made to enhance their comparability to the current year. (o) Leases
The financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency ofinformation about governments’ leasing activities. This statement establishes a singlemodel for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required torecognize a lease receivable and a deferred inflow of resources. 55 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies (Continued) At the commencement of the lease, the city initially measures the lease receivable at the present value of payments expected to be received during the lease term.
Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the leasecommencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease receipts to present value, lease term, and lease receipts.
The City used the estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease receipts included the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of it leases, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
(2) Cash and Investments
Cash and investments at June 30, 2024 are classified in the accompanying financialstatements as follows:
Primary
Government
Statement of net position
Cash and investments $ 32,119,484
Restricted cash and investments 3,287,429
Statement of fiduciary net position
Cash and investments 2,264,258
Total cash and investments 37.671,171
Cash and investments at June 30, 2024 consisted of the following:
Primary
Government
Petty cash $ 500Demand deposits 4,377,676
Investments 30,005,566Investments with fiscal agent 3,287,429 Total cash and investments 37.671.171
56 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(2) Cash and Investments (Continued)
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code, or the City’s investment policy where more restrictive. The table also identifies certain provisions of the California Government Code, (or the City’s investment policy where more restrictive, that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Investments held by fiscal agent of $3,287,429 is jointly registered in the name of the City and Cal Recycle and is not subject to the City’s investment policy.
Maximum Maximum
Percentage or Investment
Authorized Maximum Amount of in One
Investment Type Maturity Portfolio* Issuer
United States Treasury Obligations 5 years N/A N/A
Certificates of Deposits 5 years N/A $ 250,000
Local Agency Investment Fund (LAIF) N/A $ 75,000,000 75,000,000Los Angeles County Investment Fund(LACIF) N/A N/A N/AMoney Market Mutual Funds N/A 15% N/A *Excluding amounts held by bond trustee that are not subject to California Government Code restrictions.
N/A - Not Applicable
Investments Authorized by Debt Agreements
Investments of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held by the bond trustee include United States Treasury Obligations or any other federal agency obligations for which the full faith and credit of the United States are pledged for payment of principal and interest, United States Government Sponsored Agency Securities, Commercial Paper, Local Agency Bonds, Banker’s Acceptances, Money Market Mutual Funds and Investment Contracts. There were no limitations on the maximum amount that can be invested in one issuer, maximumpercentage allowed or the maximum maturity of an investment, except for the maturity of Banker’s Acceptances, which are limited to one year.
57 CITY OF AVALON
Notes to the Financial Statements
(2) Cash and Investments (Continued’)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages their exposure to interest rate risk is by purchasing, a combination of shorter term and longer-term investments and by timing, cash flows from maturities so that a portion of the portfolio is maturing or coming, close to maturity evenly overtime as necessary to providethe cash flow and liquidity needed for operations. Information about the sensitivity of the fairvalues of the investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of theinvestments by maturity:
Remaining Maturity
(in Months)
Investment Type: Total Within 12 Beyond 12
LAIF $ 18,814,839 18,814,839 - Certificate of deposits 9,539,632 9,539,632 - Held by trustee:
Money market mutual funds 1,651,095 1,651,095 -
Mutual funds 3,287,429 3,287,429 -
Total $ 33,292,995 33,292,995 - Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating as requiredby (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating, as reported by Standards and Poor’s, as of year-end foreach investment type:
(Continued)
Minimum Legal Rating
Investment Type: Total Rating AAA Unrated
LAIF $ 18,814,839 N/A - 18,814,839
Certificate of deposits 9,539,632 N/A - 9,539,632
Held by bond trustee:
Money market mutual funds 1,651,095 A 1,651,095 -Mutual funds 3,287,429 A 3,287,429 - Total $ 33,292,995 4,938,524 28,354,471
58 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(2) Cash and Investments (Continued)
Fair Value Measurement
The City categorizes its fair value investments within the fair value hierarchy established by generally accepted accounting principles. The City has the following recurring fair value measurements as of June 30, 2024:
Fair Value Hierarchy
Level 1 Level 2 Level 3 Total
Certificates of deposit $ 9,539,632 - 9,539,632
Held by trustee:
Mutual funds 3,287,429 - 3,287,429
Investments not subject to fair
value hierarchy:
LAIF - - - 18,814,839Money market mutual funds - - - 1,651,095 Total $ 3,287,429 9,539,632 - 33,292,995
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code.
Custodial Credit Risk:Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterpart (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of itsinvestment or collateral securities that are in the possession of another party. The California Government Code, and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other thanthe following, provision for deposits: the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securitiesin an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).
The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2024, the City’s deposits (bank balances) were insured by the Federal Deposit Insurance Corporation or collateralized asrequired under California Law. 59 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(2) Cash and Investments (Continued)
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is (reported in the accompanying financial statements at amounts based upon the City’s pro-rata share ofthe fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. (3) Interfund Balances and Transfers
The composition of interfund balances as of June 30, 2024, is as follows:
Advances to Advances from
other funds other funds Amount
General Fund Sewer Fund $ 46,873 (a)General Fund Saltwater Fund 17,471 (a) $ 64,344
(a) The advances from the General Fund to the Sewer and Saltwater funds were to provide financial assistance for capital improvements to the water and wastewater systems.
Fund Reporting Fund Reporting
Payable Receivable Amount
Local Transportation Fund General Fund $ 1,053,288 (a)
Avalon Housing Authority General Fund 26,500 (b)Avalon Transit General Fund 164,000 (a) Non-Major Gov’t Funds General Fund 91,639 (a)
$ 1,335,427
(a) These amounts due to the General Fund are short-term borrowings to cover negative cash balances.
(b) This amount due to the General Fund is a short-term borrowing to cover administrative expenses.
60 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(3) Interfund Balances and Transfers (Continued)
Transfers in Transfers out Amount
Avalon Transit Fund General Fund $ 288,802 (a)
Non-Major Gov’t Funds General Fund 185,959 (b)
General Fund Street Fund 18,344 (c)
General Fund Local Transportation Fund 6,206 (d)
$ 499,311
(a) To transfer funds from the General Fund to the Avalon Transit fund to cover operating expenses.
(b) To transfer funds from the General Fund to the Traffic Control and Safety ($165,946) and CDBG ($20,013) non-major governmental funds to cover operations expense within the funds.
(c) To transfer funds from the Street Fund to the General Fund to fund the Five Corners Pedestrian Project.
(d) To transfer funds from the Local Transportation Fund to the Five Corners Pedestrian Project.
(4) Capital Assets
A summary of changes in the capital assets at June 30, 2024 is as follows:
Balance at Balance at
Governmental Activities: 7/1/2023 Additions Deletions 6/30/2024 Non-depreciable assets:
Land $ 2,852,600 2,852,600
Construction in progress 1,396,696 1,171,719 - 2,568,415 Total non-depreciable assets 4,249,296 1,171,719 - 5,421,015 Depreciable assets:
Building and improvements 9,563,598 9,563,598
Improvements other than buildings 18,361,483 247,928 - 18,609,411 Machinery and equipment 3,114,999 704,709 (115,378) 3,704,330 Total depreciable assets 31,040,080 952,637 (115,378) 31,877,339 Less accumulated depreciation:
Buildings and improvements (4,783,586) (200,371) - (4,983,957) Improvements other than buildings (12,773,833) (632,141) - (13,405,974) Machinery and equipment (2,785,455) (126,399) 115,378 (2,796,476) Total accumulated depreciation (20,342,874) (958,911) 115,378 (21,186,407) Total depreciable assets 10,697,206 (6,274) - 10,690,932Total capital assets $ 14,946,502 1,165,445 - 16,111,947 61 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(4) Capital Assets (Continued)
Balance at Balance at
Business-Type Activities 7/1/2023 Additions Deletions 6/30/2024Non-depreciable assets:
Construction in progress $ 1,548,701 2,051,109 (1,943,292) 1,656,518 Depreciable assets:
Buildings and improvements 5,488,996 228,766 - 5,717,762 Improvements other than buildings 21,304,994 1,799,935 (102,610) 23,002,319 Machinery and equipment 3,534,365 984,335 (298,482) 4,220,218 Infrastructure 6,343,386 31,623 - 6,375,009
Total depreciable assets 36,671,741 3,044,659 (401,092) 39,315,308 Less accumulated depreciation:
Buildings and improvements (3,333,668) (96,889) - (3,430,557) Improvements other than buildings (11,084,658) (661,947) 101,531 (11,645,074) Machinery and equipment (2,579,559) (287,343) 296,340 (2,570,562) Infrastructure (2,732,496) (205,701) - (2,938,197)
Total accumulated depreciation (19,730,381) (1,251,880) 397,871 (20,584,390) Total depreciable assets 16,941,360 1,792,779 (3,221) 18,730,918 Total capital assets $ 18,490,061 3,843,888 (1,946,513) 20,387,436 Depreciation expense was charged to functions / programs of the governmental activities as follows:
Governmental Activities
Public safety $ 30,345Planning, building and engineering 25,269 Community services 196,313
Public works 369,715
General government 264,566
Internal service funds depreciation charged to programs 72,703 Total depreciation expense - governmental activities $ 958,911 Business-Type Activities
Harbor $ 661,799
Sewer 435,979Salt water 50,952
Solid waste 46,463
Avalon Transit 56,687
Total depreciation expense - business-type activities $ 1,251,880 62 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(5) Long-term Liabilities
A summary of changes in long-term liabilities for the year ended June 30, 2024 is as follows:
Balance at Balance at Due Within One
7/1/2023 Additions Deletions 6/30/2024 Year
Governmental ActivitiesCompensated absences $ 472,253 21,014 - 493,267 320,624Claims payable 83,988 - (11,685) 72,303 - Lease liability 93,809 - (93,809) - - Total Governmental $ 650,050 21,014 (105,494) 565,570 320,624 Business-type Activities
Compensated absences $ 308,726 12,355 (2,167) 318,914 207,294Claims payable 25,000 - - 25,000 25,000 Total Business-type $ 333,726 12,355 (2,167) 343,914 232,294 ACIA Successor Anency
Bonds Payable:
2003A TAB $ 1,360,000 - 1,360,0002015A TAB 11,205,000 (945,000) 10,260,000 995,0002015B TAB 4,175,000 - (305,000) 3,870,000 315,000 Bond premium 372,605 - (72,963) 299,642 62,263
Total ACIA Successor Agency $ 17,112,605 - (1,322,963) 15,789,642 1,372,263 Compensated absences have typically been paid from the City’s General Fund and the Enterprise Funds.
ACIA Successor Agency Activities
(a) 2003 Tax Allocation Bonds, Series A
On December 3, 2003, the Agency issued $27,350,000 in Tax Allocation Refunding Bonds, Series A, to refund the 1998 Refunding Tax Allocation Bonds and to financeredevelopment activities.
Serial bonds mature annually each September 1 through 2023. In addition, term bonds in the amount of $5,890,000 and $6,185,000 mature September 1, 2029, and September 1, 2034, respectively. The term bonds are subject to mandatory sinking fund requirements that commence September 1, 2024, and September 1, 2030, respectively. The bonds bear interest at rates ranging from 2.00% to 4.95%. Interestis payable semiannually, on March 1 and September 1. These bonds were partiallyrefunded on July 1, 2015, through issuance of the 2015 Tax Allocation Bonds. 63 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(5) Long-term Liabilities (Continued)
The annual debt service requirements on these bonds at June 30, 2024, were as follows:
Year ending
June 30, Principal Interest Total
2025 $ 67,320 67,3202026 67,320 67,3202027 67,320 67,3202028 67,320 67,3202029 67,320 67,320 2030-2034 336,600 336,600
2035 1,360,000 33,660 1,393,660
Total $ 1,360,000 706,860 2,066,860
(b) 2015 Tax Allocation Refunding Bonds, Series A
On July 1, 2015, the Agency issued $17,160,000 Tax Allocation Refunding Bonds, Series A, to partially refund the 2003A Tax Allocation Bonds and fully refund the 2003 TaxAllocation Bonds, Series B. The net proceeds of the 2015A Bonds were deposited into an irrevocable trust with an escrow agent for payment of a portion of the outstanding 2003A Tax Allocation Bonds. The refunding of a portion of the 2003A Tax Allocation Bonds resulted in a reduction in total debt service payments over the next 19 years by $2.2 million, and an economic gain of $1.7 million.
A term bond in the amount of $3,450,000 matures September 1, 2033. The term bond is subject to mandatory sinking fund requirements that commence September 1, 2031, September 1, 2032, and September 1, 2033. The term bond bears interest at the rateof 4.00%. The 2015 Tax Allocation Refunding Bonds includes principal installmentsannually from September 2016 to September 2033 with interest payable semi-annually from September 2016 to September 2033 at an interest rate between 2.00% and
5.00 °h.
The annual debt service requirements on these bonds at June 30, 2024, were as follows:
Year ending
June 30, Principal Interest Total
2025 $ 995,000 407,213 1,402,2132026 860,000 360,838 1,220,838 2027 905,000 316,713 1,221,7132028 950,000 270,338 1,220,338 2029 1,000,000 229,713 1,229,713
2030-2034 5,550,000 562,806 6,112,806
Total $ 10,260,000 2,147,621 12,407,621
64 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(5) Long-term Liabilities (Continued
(c) 2015 Tax Allocation Refunding Bonds, Series B
On July 1, 2015, the Agency issued $6,035,000 Tax Allocation Refunding Bonds, Series B, to partially refund the 2003A Tax Allocation Bonds and fully refund the 2003B Tax Allocation Bonds. The net proceeds of the 2015B Bonds were deposited into an irrevocable trust with an escrow agent for payment of a portion of the 2003A Tax Allocation Bonds and a portion of the 2003B Tax Allocation Bonds. As a result of these payments, the 2003B Tax Allocation Bonds are considered defeased, and the liability for the bonds has been removed from the Statement of Net Position. The refunding of a portion of the 2003A Tax Allocation Bonds and the 2003B Tax Allocation Bonds resultedin a reduction in total debt service payments over the next 19 years by $1.0 million, and an economic gain of $0.6 million.
Term bonds in the amount of $1,530,000 and $1,355,000 mature September 1, 2030, and September 1, 2033, respectively. The term bonds are subject to mandatory sinking fund requirements that commence September 1, 2030, and September 1, 2033, respectively.
The term bonds bear interest at rates of 4.75% and 5.00%, respectively. The 2015 Tax Allocation Refunding Bonds Series B includes principal installments annually from September 2016 to September 2033 with interest payable semi-annually fromSeptember 2016 to September 2033 at an interest rate between 1.00% and 5.00%.
The annual debt service requirements on these bonds at June 30, 2024, were as follows:
Year ending
June 30, Principal Interest Total
2025 $ 315,000 176,247 491,2472026 330,000 162,738 492,7382027 340,000 148,074 488,0742028 355,000 131,994 486,994 2029 375,000 114,656 489,656
2030-2034 2,155,000 277,850 2,432,850
Total $ 3,870,000 1,011,559 4,881,559
(d) Pledged Revenues
The ACIA Successor Agency debt issues are collateralized by the pledging of tax increment revenue. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes.
The purpose for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. 65 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(5) Long-term Liabilities (Continued’)
As a result of the state’s action to dissolve all redevelopment agencies in the State of California, the Successor Agency to the dissolved Avalon Community Improvement Agency no longer receives the full amount of tax increment previously pledged by the dissolved redevelopment agency to its bondholders. In its place is a new revenuestream, Redevelopment Property Tax Trust Fund distributions (RPTTF), provided to theSuccessor Agency that represents only that portion of tax increment that is necessary to pay for the approved enforceable obligations that come due for that fiscal year.
For the year ended June 30, 2024, annual pledged revenues of $2,199,802 covered debt service requirements.
(e) Advances from the County of Los Angeles
The former ACIA and the County of Los Angeles entered into an agreement dated December 13, 1983, whereby the County agreed to defer its share of tax increment(County Deferrals) generated within the project area and remit it to the Agency to meet the Agency’s debt service obligations. Per the agreement the County Deferrals accrued simple interest of 5% for the year following the origination of the deferral amount. Afterthat, no further interest accrues. The County Deferrals were payable from property tax increment revenues received by the Agency in excess of its debt service requirements.
After the dissolution of redevelopment, the County has been making repayments of County Deferrals as Redevelopment Property Tax Trust Funds (RPTTF) are available; payments of $753,717 were made in the fiscal year ending June 30, 2024. There is no fixed payment schedule for the remaining $95,842 owed as it depends on various factors pursuant to the agreement. The accompanying financial statements do not reflect a liability to the City for this matter.
Governmental Activities
Finance purchase agreementDuring the year ending June 30, 2017, the City ofAvalon entered into a finance purchase agreement for financing the acquisition of equipment and artificial turf valued at$831,782.
These obligations were paid off in full during the year ended June 30, 2024. (6) Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (fire) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CaIPERS). Benefit provisions under the Plans are established 66 (6) Pension Plan (Continued)
CITY OF AVALON
Notes to the Financial Statements
(Continued)
by State statute and City resolution. CaIPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CaIPERS website.Benefits Provided CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment.
The Plans’ provisions and benefits in effect at June 30, 2024, are summarized as follows:
Miscellaneous
Hire dateBenefit formulaBenefit vesting scheduleBenefit payments Retirement ageRequired employee contribution ratesRequired employer contribution rates Prior to
January 1,
2013
2.0% @ 55
5 years of
service
monthly for life
59 6.92%
11.84%
Prior to
On or after
January 1, 2013
2% @ 62
5 years of
service
monthly for life
Safety
59 7.75%7.68%
Hire dateBenefit formula
Benefit vesting scheduleBenefit paymentsRetirement ageRequired employee contribution ratesRequired employer contribution rates January 1,
2013
2% @ 50
5 years of
service
monthly for life
54 8.96%
19.95%
On or after
January 1, 2013
2.7% @ 57
5 years of
service
monthly for life
54 13.75%
13.54%
Employees Covered
As of the June 30, 2023 measurement date, the following current and former employees were covered by the benefit terms under the Plans:
Inactive employees or beneficiaries currently receiving benefits Miscellaneous
38 127
Active employees
Total
Safety
21 89 30
51 67
CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued)
Contribution Descriition
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that theemployer contribution rates for all public employers be determined on an annual basis by theactuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CaIPERS’ annual actuarial valuation process.
The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance anyunfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the City to satisfy contribution requirements that are identified by the pension plan terms as plan membercontribution requirements are classified as plan member contributions.
Actuarial Methods and Assumptions used to determine Total Pension Liability For the measurement period ending June 30, 2023 (the measurement date), the total pension liability was determined using the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Actuarial Cost MethodActuarial Assumptions Discount Rate 6.90%
Inflation 2.30%Salary Increases Varies by Entry Age and Service Mortality Rate Table* Derived using CaIPERS’ Membership Data for all funds
Contract COLA up to 2.30% until
Post Retirement Benefit Purchasing Power Protection Allowance Increase Floor on Purchasing Power applies
* The mortality table used was developed based on CaIPERS-specific data. The probabilities of mortality are based on the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate fullgenerational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the2021 experience study report from November 2021 that can be found on the CaIPERS website.
68 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at the statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long term expected rate of return on plan on investment was applied to all periods of projected benefit payments to determine the total pension liability.
In determining the long-term expected rate of return, CaIPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.
Assumed Asset Real
Asset Class (a) Allocation Return
Global Equity - Cap-weighted 30.00% 4.54%Global Equity - Non-Cap-weighted 12.00% 3.84% Private equity 13.00% 7.28%
Treasury 5.00% O.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%Emerging Market Debt 5.00% 2.48%Private Debt 5.00% 3.57%Real Assets 15.00% 3.21%Leverage -5.00% -0.59% (a) An expected inflation of 2.30% used for this period.(b) Figures are based on the 2021 Asset Liability Management study. 69 (6) Pension Plan (Continued)
CITY OF AVALON
Notes to the Financial Statements
(Continued)
Allocation of Net Pension Liability and Pension Expense to Individual Emrloyers The following table shows the plan’s proportionate share of the net pension liability over the measurement period:
Miscellaneous Plan:
Balance at: 6/30/22 (VD)Balance at: 6/30/23 (MD)
Net Changes during 22-23
(b) (c) — (a) - (b)
5,516,957 _____________ 5,901,354
384,397
Safety Plan:
Balance at: 6/30/22 (VD)Balance at: 6/30/23 (MD)
Net Changes during 22-23
Total:
27,070,953 19,987,36127,701,963 20,077,548
631,010 90,187
7,083,5927,624,415
540,823
Balance at: 6/30/22 (VD)Balance at: 6/30/23 (MD)
Net Changes during 22-23
47,302,49748,879,363
$ 1,576,866
34,701,948
35,353,594
651,646
12,600,54913,525,769
925,220
Miscellaneous Safety
0.118% 0.103%0.118% 0.102%0.000% -0.001%
Total Pension
Liability
(a)
Plan Fiduciary Net Pension
Net Position Liability
$ 20,231,544 14,714,587
21,177,400 15,276,046
945,856 561,459
The City’s proportionate share of the
and 2023 was as follows:
net pension liability for each plan as of June 30, 2022, Proportion -June 30, 2022Proportion -June 30, 2023
Change - Increase (Decrease)
70 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued)
Sensitivity of the Net Pension Liability to Chancies in the Discount Rate The following presents the net pension liability of the Plan as of the Measurement Date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage-point lower (5.90 percent) or one percentage-point higher (7.90 percent) than the current rate:
Discount Rate Current Discount Discount Rate
-1% (5.90%) Rate (6.90%) +1°h (7.90%)
Miscellaneous Plan’s Net
Pension Liability $ 8,765,506 5,901,354 3,543,909
Safety Plan’s Net Pension
Liability 11,424,632 7,624,415 4,517,468
Total $ 20,190,138 13,525,769 8,061,377
Recocinition of Gains and Losses
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary netposition are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows ofresources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss:
Difference between projected and
actual earnings 5-year straight-line amortization
All other amounts Straight-line amortization over the
average expected remaining servicelifetime (EARSL) of all members that are provided with benefits (active, inactive,
and retired) as of the beginning of the
measurement period.
Pension Exiense and Deferred Outflows and Deferred Inflows of Resources Related toPensionsFor the year ended June 30, 2024, the City recognized pension expense of $537,573 for the Miscellaneous Plan and $774,524 for the Safety Plan. As of June 30, 2024, the City reported other amounts for the Plan as deferred outflow and deferred inflow of resources related to pensions as follows:
71 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued)
Deferred Deferred
Outflows Inflows
of Resources of Resources
Miscellaneous Plan:
Pension Contributions $ 383,884 -Difference between expected and actual experience 301,473 (46,766)Change in proportion and differences betweenemployer contributions and proportionate shareof contributions - (622,439)Changes of assumptions 356,291 - Net Difference between Projected and ActualEarnings on Pension Plan Investments 955,482 - Adjustment due to Differences in Proportions 13,802 (116,293) Total Miscellaneous Plan 2,010,932 (785,498)
Safety Plan:
Pension Contributions 477,784 -Difference between expected and actual experience 559,773 (47,922)Change in proportion and differences betweenemployer contributions and proportionate shareof contributions - (975,469)Changes of assumptions 444,971 - Net Difference between Projected and ActualEarnings on Pension Plan Investments 1,043,399 - Adjustment due to Differences in Proportions 145,042 (23,068) Total Safety Plan 2,670,969 (1,046,459)
Total:
Pension Contributions 861,668 -Difference between expected and actual experience 861,246 (94,688)Change in proportion and differences betweenemployer contributions and proportionate shareof contribution - (1,597,908)Changes of assumptions 801,262 - Net Difference between Projected and Actual Earnings on Pension Plan Investments 1,998,881 - Adjustment due to Differences in Proportions 158,844 (139,361) Total City $ 4,681,901 (1,831,957)
72 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(6) Pension Plan (Continued)
Employer contributions subsequent to the measurement date reported as deferred outflows of resources in the amount of $861,668 will be recognized as a reduction of the net pension liability in the fiscal year ended June 30, 2025.Other amounts reported as deferred outflows and deferred inflows of resources in the previouschart, including the employer-specific item, will be recognized in future pension expense as follows:
Fiscal Deferred
Year Outflows/(Inflows)
Ending June 30, of Resources
Miscellaneous Plan:
2025 $ 92,9932026 79,3062027 641,8342028 27,417
2029 -
Safety Plan:
2025 205,340
2026 178,2432027 734,0192028 29,124
2029 -
Total:
2025 298,3332026 257,5492027 1,375,8532028 56,5412029 - Plan Descriition
The City provides medical and dental benefits for retired employees and their spouses through a single employer plan. The City contributes to the CaIPERS Health Plan single-employer defined benefit healthcare plan. The benefits are available to employees who retire from theCity and commence pension benefits under CaIPERS (on or after age 50) with at least five years of service.
73 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(7) Other Post-Emnloyment Benefits (OPEB)
Employees retiring with at least 20 years of service receive a City contribution for the full cost of coverage for medical and dental coverage. As of the June 30, 2023 measurement date, 34 retired employees were eligible to receive medical and dental benefits. The Plan does not issue a publicly available financial report.
Emoloyees Covered
As of the June 30, 2023 measurement date, the following current and former employeeswere covered by the benefit terms under the Plan:
Active employees 60
Inactive employees or beneficiaries currently receiving benefits 31 Total 91
Contributions
The City pays the cost of the post-employment healthcare and dental benefits for retirees andtheir spouses during the life of the retiree. The surviving spouse of an eligible retiree who elected spouse coverage under CaIPERS is eligible for the contribution upon the death of the retiree. Substantially all of the government’s employees may become eligible for thesebenefits if they reach normal retirement age while working for the City.
The contribution requirements of plan members and the City are established and may be amended by the City, City Council, and/or the employee associations. Currently, contributionsare not required from plan members. The City has established a trust for the purpose of holding funds that have been irrevocably contributed by the City toward funding of its OPEB obligation. This trust is being administered by California Employer’s Retiree Benefit Trust (CERBT). Annually, City Council determines the amount that the City will fund to this trust.
For the fiscal year ended June 30, 2024, the City’s cash contributions were $0 in payments to the trust. In addition, the City contributed $305,229 of its funds in the form of retiree payments and implied subsidy paid by the District for retirees for total payments of $305,229.
The City’s net OPEB liability was measured as of June 30, 2023 by an actuarial valuation based on the following actuarial methods and assumptions:
Discount Rate: 3.88% per annum. This discount rate is based on the updated cross-over test, municipal bond index, and expected rate of return on the Trust, that produces a liability decrease.
Inflation Rate: 2.30% per year
Aggregate Payroll Increases: 2.80% per year. This assumption is used to amortize the unfunded actuarial accrued liability and to determine the Entry Age Normal actuarial liabilities.
74 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(7) Other Post-Employment Benefits (OPEB) (Continued)
Mortality Rate: Based on assumptions for Public Agency Miscellaneous, Police and Fire members published in the November 2021 CaIPERS Experience Study.
Turnover Rate: Assumption used to project terminations (voluntary and involuntary) prior to meeting minimum retirement eligibility for retiree health coverage. The rates represent the probability of termination in the next 12 months. Based on CaIPERSExperience Study and Review of Actuarial Assumptions published in November 2021 forPublic Agency Miscellaneous, Police, and Fire members.Retirement Rate: Based on CaIPERS Experience Study and Review of Actuarial Assumptions published in November 2021 for Public Agency Miscellaneous, Police and Fire members.
Discount Rate
The expected long-term real rate of return of the OPEB Trust is 5.10% as of June 30, 2024.This rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return net of investment expense are developed for each major asset class. These ranges are combined to produce the long-term expected rateof return by weighting the expected future rates of return by the target allocation percentage.
The Plan Sponsor’s expected future real rates of return by asset class is as shown below.
Projected
Target real rates of
Asset Class Allocation return
Global Equity 49.00% 6.80%
Fixed income 23.00% 3.70%
Global Real Estate (REITs) 20.00% 6.00%
Treasury Inflation-Protected Securities
(TIPS) 5.00% 2.80%
Commodities 3.00% 3.40%
Total 100%
75 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(7) Other Post-Employment Benefits (OPEB) (Continued)
Chanoes in the net OPEB Liability
The changes in the Plan’s net OPEB liability is as follows:
Balance at June 30, 2023
Service costInterest
Differences between expected and actual
experience
Changes of assumptions
Change in benefit termsContributions - employer
Net investment incomeBenefit payments
Administrative expense
Net ChangesBalance at June 30, 2024(Measurement Date June 30, 2022) Net OPEB
Liability/(Asset)
7,956,970
304,317310,619
(605,550)
(1,114,594)
14,980
(305,229)
(18,300)
143
(1,413,614)
6,543,356
Sensitivity of the OPEB Liability to Chancies in the Discount Rate The following presents the City’s OPEB liability if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, formeasurement period ended June 30, 2023:
Current
OPEB Liability $ 7,544,783 6,543,356
Sensitivity of the OPEB Liability to Chancies in the Health Care Cost Trend Rates The following presents the OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2023:
Current Healthcare Cost
OPEB Liability
1% Decrease
(6. 40%)
Trend Rates
(7.40%)
6,543,356
1% Increase
(8.40%)
7,580,352
Total OPEB
Liability
Plan Fiduciary
Net Position
$ 8,243,396 286,426
304,317 -310,619 - (605,550) -
(1,114,594) -
14,980 - - 305,229
- 18,300
(305,229) (305,229) - (143)
(1,395,457) 18,157
$ 6,847,939 304,583
l% Decrease
(2.88 %)
Discount Rate
(3.88%)
l% Increase
(4.8 8%)
5,724,215
$ 5,716,045
76 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(7) Other Post-Employment Benefits (OPEB) (Continued)
Recocinition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in the net OPEB liability are recognized in OPEB expense systematically over time.
Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resourcesrelated to OPEB and are to be recognized in future OPEB expense. The initial amortizationperiod for deferred inflows and deferred outflows is three years.
OPEB Exiense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2024, the City recognized OPEB expense of $174,459. At June 30, 2024, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:
Deferred
Outflows Deferred Inflows
of Resources of Resources
OPEB contributions subsequent to measurement date $ 236,590 - Changes in assumptions 856,034 (2,789,533) Differences between expected and actual experience 157,579 (1,088,319)Net difference between projected and actual earnings on investments 18,103 -
Total $ 1,268,306 (3,877,852)
The $236,590 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023, measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025. Other amounts reported as deferredinflows of resources related to OPEB will be recognized as expense as follows:
Deferred
Fiscal Year Outflows/(Inflows)
Ended June 30: of Resources
2025 $ (465,640)2026 (432,524)2027 (466,518)2028 (613,383)2029 (561,755) Thereafter (306,316)
77 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(9) Individual Fund Disclosures
The following funds reported a deficit fund balance:
Major Funds:
Solidwaste 495,133 (b)
Nonmajor Special Revenue Funds:
Traffic Control and Safety 4,105 (c)
Community Development Block Grant 91,879 (a)
(a) The Community Development and Block Grant Fund deficit is expected to be eliminated through future grant receipts.
(b) The City expects to eliminate the Solidwaste Fund deficit through increased user fees.(c) The Traffic Control and Safety Fund deficit is expected to be eliminated through future fines.
(10) Commitments and Contingencies
(a) Lawsuits
Avalon K-12 School/California Deiartment of Toxic Substance Control Matter In March 2012, the California Environmental Protection Agency’s Department of ToxicSubstances Control (DTSC) issued an Imminent and Substantial Endangerment Determination and Remedial Action Order (Order) to the City, the Santa Catalina Island Company, and the Long Beach Unified School District regarding three parcels of property totaling approximately 14 acres, which include the Avalon K-12 School and the adjacent City warehouse property. The Order states that there may be an imminent and/or substantial endangerment to the public health or welfare or to the environment becauseof a release and/or the threatened release of hazardous substances at the site and requires the named parties to undertake certain response actions to address the contamination. Each of the parties is jointly and severally liable to DTSC for the required response actions.
Since issuance of the Order, the City and the other two parties have entered into acooperating agreement, whereby they have jointly retained a consultant and are sharing the cost to prepare and implement the Remedial Investigation/Feasibility Study (RI/Fl).
The Remedial Investigation, namely the soil sampling and excavation activities on-site was performed in September 2013, the report on which was approved by the DTSC on February 12, 2014. Feedback from the DTSC called for a Human Health Risk Assessment(HHRA), preparation of a Feasibility Study workplan, and further investigations.
Following completion and approval of the Feasibility Study, the parties will confer with 79 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(10) Commitments and Contingencies (Continued)
the DTSC on the appropriate actions to address any contamination identified in the investigation, which will be implemented in the Remedial Action Plan. The nature and costs of any required remedial actions cannot be estimated at this time. Once the costsare known, the parties will attempt to negotiate a cost sharing agreement for that portion of work, to avoid litigation. The City has tendered the defense and indemnity of this matter to insurance carriers that issued insurance to the City in the past. One ofthe carriers has accepted tender, with reservation of rights, and, as such, a significant portion of the costs have been covered by insurance.
EPA/State/Regional Water Board Investigations
The United States Environmental Protection Agency, the State Water Resources Control Board and the Los Angeles Regional Water Quality Control Board have conducted a review of the City’s sanitary sewer system operations.
The City owns a sewage treatment plant and related conveyance system, and the City has a contract with Environ Strategies to operate and maintain the system. Theprobability of such litigation or amount or monetary exposure is unknown at this time.
A Cease and Desist Order was issued March 5, 2012 by the Los Angeles Regional Water Quality Board that requires the City to initiate many programs and updates to its sewer system. No fines were proposed and the City does not anticipate any fines being levied.In October 2014 and 2015, the City filed reports verifying its compliance with permit requirements. The City has estimated potential costs of remediation to be $25,000, in addition to the routine maintenance or improvement costs typically incurred by the Cityeach fiscal year. This amount is included as a liability in the Sewer Enterprise Fund.
There are various other claims and legal actions pending against the City. In the opinion of the City Attorney and City management, other than the claims noted above, liabilitiesarising from these claims and legal actions, if any, will not have an adverse materialeffect on the financial position of the City. (b) Federal and State Grants
The City has received State and Federal funds for specific purposes that are subject to review by the grantor agencies. Although, such audits could generate expenditure disallowances under the terms of the grants, it is believed that required reimbursements, if any, will not be material.
80 CITY OF AVALON
Notes to the Financial Statements
(Continued)
(11) Landfill Closure Liability
State and federal laws and regulations require the City to pay for costs related of the Pebbly Beach Landfill (PBL) to protect against contaminants leaking from the PBL into the local groundwater and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date that the landfill stops accepting waste, the City reports a portion of theseclosure and postclosure care costs as an operating expense in each period based on landfillcapacity used as of each balance sheet date. The $5.7 million reported as landfill closure and postclosure care liability as of June 30, 2024, represents the cumulative amount reported based on the use of 90 percent of the estimated capacity of the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of $643 thousand as the remaining capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2016. The City expects to close the landfill in the year 2025.
Actual cost may be higher due to inflation, changes in technology, or changes in regulations.
The City is required by state and Federal laws and regulations to make annual contributions to a trust to finance closure and postclosure care. The City is in compliance with these requirements, and, at June 30, 2024 investments of $3.3 million ($3.3 million fair value) are held for these purposes. These are reported as cash and investments on the Statement ofNet Position. The City expects that future inflation costs will be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional postclosure care requirements are determined (due to changes in technology or applicable laws or regulations, for example), these costs may need to be covered by charges to futurelandfill users or from future tax revenue. (12) Orerating Agreement
On September 16, 2003, the City entered into an operating agreement with the Avalon Medical Development Corporation (AMDC) whereby AMDC will rent the Avalon MunicipalHospital facility and perform all maintenance and operation of the facility. The agreement term calls for automatic extensions through September 15, 2033 with annual rental payments of $1 due from AMDC.
(13) Lease Receivables
Land
The City has entered into 27 land leases with lease terms ranging from one year to 55.375 years. The lessees are required to make monthly fixed payments ranging from $36 to $4,179with discount rates ranging from 0.0% to 2.623%. As of June 30, 2024, the lease receivable is $873,071, and deferred inflows of resources is $861,812. The City recognized $442,283 oflease revenue during the fiscal year. 81 CITY OF AVALON
(13) Lease Receivables (Continued)
Buildings
(Continued)
The City has entered into three building leases with lease terms ranging from 2.25 years to 20 years. The lessees are required to make monthly fixed payments ranging from $3,327 to $3,400, or an annual fixed payment of $10,000, or variable payments, with discount rates ranging from 0.0% to 2.536%. As of June 30, 2024, the lease receivable is $813,586, and deferred inflows of resources is $790,255. The City recognized $82,429 of lease revenueduring the fiscal year.Infrastructure The City has entered into one infrastructure lease with a lease term of nine years. The City will waive rent for the Lessee’s first seven years of operation. Beginning May 1, 2028, the Lessee shall pay an annual lease mooring fee for the End-Float based on the float’s total length, in accordance with the City’s current mooring fee size schedule. As of June 30, 2024, the lease receivable is $39,960, and deferred inflows of resources is $26,640. The City recognized $4,440 of lease revenue lease revenue during the fiscal year. (14) Prior Period Adjustment
During the year, the City negotiated an amendment to comply with SB1383 which began inDecember 2022. The City was billed for the services performed from December 2022 — June 2023 in the amount of $161,177 which were related to the prior fiscal year. The effect ofrecording the expense as well as the associated fund balance from prior years is shown below.
Net position, beginning of year, as previously reported Operating expenses
Net position, beginning of year, as restatedNet position, beginning of year, as previously reported Operating expenses
Net position, beginning of year, as restated
Solid Waste
$ (471,929)
(161,177)
$ (633,106)
Notes to the Financial Statements
$
Business-type
Activities _____ 14,758,302
(161,177)
$ 14,597,125
82 REQUIRED SUPPLEMENTARY IN FORMATION
CITY OF AVAL.ON
Schedu’e of the Plaii’s Proportionate Share of the Net Pension Liability Year ended June 30, 2024
(With cornpartve informat:on for the last .0 yea.s)
_______Miscellaneous
Plan __________ Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Plan’s Proportion of the Net Pension Liablifty (Asset) 0052% 0.119% 0113% 0112% Plan’s Proportionate Share of the Net Pension Liability (Asset) $3,244,942 3,251,550 3,925,210 4,427,923Plan’s Covered-Employee Payroll $2,244,540 2,163,234 2,493,789 2,773,397 Plan’s Proportionate Share of the Net Pension Liability (Asset) as a percentage of its Covered Payroll 144.57% 150.31% 157.40% 159.66% Plan’s Proportion of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 75.76% 76.83% 72.82% 72.86% Notes to Schedule:
Summary of Changes of Benefits or Assumptions:
Benefit Changes: There were no changes to benefit terms that applied to all members of the Public AgencyPool. However, individual employers in the Plan may have provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to reportthis information as a separate liability in their financial statement as CaIPERS considers such amounts to be separatelyfinanced employer-specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2022 valuation date, unless the liability impact is deemed tobe material to the Public Agency Pool.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on orafter July 1, 2023. For pooled plans this is a Class 3 benefit and there is no normal cost surcharge. The impact on the unfunded liability is included in the pooi’s differences between expected and actual experience.
Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CaIPERS took into account long-term market return expectations as well as theexpected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption werechanged in accordance with the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. Theaccounting discount rate was 7.lS% for measurement dates June 30, 2017 through June 30, 2021, 7.6S% for measurement dates June 30, 2015 throucih June 30, 2016, and 7.50% for measurement date June 30. 2014. 83 MisceIIiecjs P’an
6/30/2018 6/30/2019 6/302O20 6/30/2021 6/30/2022 5/30/2023
0.115°/a 0.111% 0.112% 0147% 0.118% 0.118%
4,200,936 4,457,609 4,725,154 2,797,487 5,516,957 5,901,354 3,007,600 3,248,877 3,085,070 2,225,428 2,541,087 2,817,106 139.68% 137.20% 153.16% 125.71% 217.11% 209.48%
76.19% 75.26% 75.10% 88.29°/a 76.68% 76.21%
84 CITY OF AVALON
Schedule of Plan Contributions
Year ended June 30, 2024
(With comparative information for the last 10 years)
Miscellaneous
Fiscal Year 6/30/2015 6/30/2016 6/30/2017 6/30/2018
Actuarially Determined Contribution $ 380,971 171,940 467,748 308,960 Contributions in relation to the Actuarially
Determined Contribution (380,971) (171,940) (467,748) (308,960) Contribution Deficiency (Excess) - - Covered-Employee Payroll $ 2,163,234 2,493,789 2,773,397 3,007,600Contributions as a Percentage of CoveredEmployee Payroll 17.61% 6.89% 16.87% 10.27°h Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023 were from the June 30, 2021 funding valuation report.Actuarial Cost Method Entry Age Actuarial Cost Method Amortization Method/Period Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing.
Asset Valuation Method Market Value of assets
Inflation 2.3O%
Salary Increases Varies by category, entry age, and duration of service.
Discount Rate 6.9O% Net of Pension Plan Investment and Administrative Expenses; includes inflation
85 Miscellaneous
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 372,356 265,096 337,003 389,044 238,104 281,831
(372,356) (265,096) (337,003) (389,044) (281,831)
3,248,877 3,085,070 2,225,428 2,541,087 2,817,106 3,068,826
11.46% 8.59% 15.14% 15.31% 8.45% 9.18%
86 CITY OF AVALON
Schedule of the Plan’s Proportionate Share of the Net Pension Liability Year ended June 30, 2024
(With comparative information for the last 10 years)
Safety Plan
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017Plan’s Proportion of the Net Pension Liability (Asset) 0.069% O.l3l% 0.102% 0.099%Plan’s Proportionate Share of the Net Pension Liability (Asset) $ 4,315,290 4,453,372 5,295,648 5,914,603Plan’s Covered-Employee Payroll $ 2,013,283 2,060,685 2,049,532 2,188,257Plan’s Proportionate Share of the Net Pension Liability (Asset) as a percentage of its Covered Payroll 214.34% 216.11% 258.38% 270.29% Plan’s Proportion of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 73.73% 73.6l% 69.60% 70.76% Notes to Schedule:Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool.However, individual employers in the Plan may have provided a benefit improvement to their employees such as GoldenHandshakes, service purchases, and other prior service costs. Employers that have done so may need to report thisinformation as a separate liability in their financial statement as CaIPERS considers such amounts to be separately financed employer-specific liabilities. These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2022 valuation date, unless the liability impact isdeemed to be material to the Public Agency Pool.In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurringon or after July 1, 2023. For pooled plans this is a Class 3 benefit and there is no normal cost surcharge. The impact onthe unfunded liability is included in the pool’s differences between expected and actual experience.Changes of Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.1S% to 6.90%. In determining the long-term expected rate of return, CaIPERS took into account long-term market return expectations as well as theexpected pension fund cash flows. In addition, demographic assumptions and the price inflation assumption werechanged in accordance with the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions, The accountingdiscount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014. 87 Safety Plan
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 0098% 0.09]% O.09]% 0.102% 0.103% O.102%
5,774,582 6,061,774 6,465,638 3,596,258 7,083,593 7,624,4152,113,600 2,351,828 2,321,155 1,860,947 1,742,889 1,965,227 273.21% 257.75°h 278.55% 193.25% 406.43% 387.97%73780% 73,371% 73.ll7% 86.610% 75.525% 74.873% 88 CITY OF AVALON
Schedule of Plan Contributions
Year ended June 30, 2024
(With comparative information for the last 10 years)
Safety
Fiscal Year 6/30/20 15 6/30/20 16 6/30/20 17 6/30/20 18 Actuarially Determined Contribution $ 542,007 284,406 710,437 565,204 Contributions in relation to the
Actuarially Determined Contribution (542,007) (284,406) (710,437) (565,204) Contribution Deficiency (Excess) $ - - -Covered-Employee Payroll $ 2,060,685 2,049,532 2,188,257 2,113,600Contributions as a Percentage ofCovered-Employee Payroll 26.30% 13.88% 32.47% 26.74% Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year 2023 were from the June 30, 2021 funding valuation report.Actuarial Cost Method Entry Age Actuarial Cost Method Amortization Method/Period Varies by date established and source. May be level dollar or level percent of pay and may include direct rate smoothing.
Asset Valuation Method Market Value of assets
Inflation 2.30%Salary Increases Varies by category, entry age, and duration of service.Discount Rate 6.90% Net of Pension Plan Investment and Administrative Expenses; includes inflation
89 Safety
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 585,335 361,529 644,158 489,408 329,881 371,415
(585,335) (361,529) (644,158) (489,408) (329,881) (371,415) 2,351,828 2,321,155 1,860,947 1,742,889 1,965,227 2,052,650
24.89% 15.58% 34.61% 28.08% 16.79% 18.09%
90 CITY OP AVALON
Schedule of Changes in Net OPEB Liability and Related Ratios Year ended June 30, 2024
(With comparative information for the last 10 years)5
Measurement date June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2023 Total OPEB liability
Service cost $ 362,098 321,604 333,322 410,991 505,928 459,119 304,317Interest on the total OPEB liability 234,548 270,662 287,947 283,126 261,685 209,153 310,619Actual and expected experience difference - - (75,252) (16,029) (938,058) 220,611 (605,550) Changes in assumptions (811,400) (73,428) 473,354 1,070,485 423,645 (2,503,412) (1,114,594)Changes in benefit terms - - - - - - 14,080 Benefit payments (158,558) (190,119) (168,056) (183,]j (236,555) (279.79j (305,229) Net change in total OPEB liability (373,312) 328,719 851,315 1,564,716 16,642 (1,894,324) (1,395,457) Total OPEB liability - beginning 7,749,640 7,376,328 7,705,047 8,556,362 10,121,078 10,137,720 8,243,396Total OPEB liability - ending $ 7,376,328 7,705,047 8,556,362 10,121,078 10,137,720 8,243,396 6,847,939 Plan Fiduciary Net Position
Contribution - employer $ - - 418,056 183,857 236,555 279,795 305,229 Net investment income - - 807 8,859 71,328 (44,263) 18,300 Benefit payments - - (168,056) (183,857) (236,555) (279,795) (305,229) Administrative expense - - - (123) (98) ___________ (143) Net change in plan fiduciary net position - - 250,807 8,736 71,230 (44,347) 18,157 Plan fiduciary net position - beginning - - - 250,807 259,543 330,773 286,426Plan fiduciary net position - ending (b) $ - - 250,807 259,543 330,773 304,583Net OPEB liability - ending (a)-(b) $ 7,376,328 7,705,047 8,30S,SS5 9,861,535 9,806,947 7,956,970 6,543,356 Plan fiduciary net position as a percentage of
the net OPEB liability 0.00% 0.00% 2.93% 2.56% 3.26% 3.47% 4.45% Covered employee payroll $ 4,961,654 $ 5,154,285 $ 5,600,705 $ 5,406,225 $ 4,446,081 $ 4,086,375 $ 4,782,333OPEB liability as a percentage of covered-employee payroll 148.67% 149.49% 148.29% 182.41°k 220.58% 1.94.72°?,, 136.82% Notes to Schedule:
Changes in assumptions. The discount rate as 01 the June 30, 2016 measurement date was 2.92%. The discount rate as of the June 30, 2017 measurement date was 3.56°/s, based on 20-year municipal bond rates as of each measurement date. The discount rate for the measurement period ended June 30, 2018 was 3.62%. The discount rate as of the June 30, 2020 measurement date was 2.49°/s. The discount rate as of the June 30, 2021 measurement dale was 2.O0%. The discount rate as of June 30, 2022 was 3.70°!,,.
The discount rate as of June 30, 2023 was 3.88°/a.
Payroll growth, mortality, termination, disability, and retirement rates have been updated from CaIPERSExperience Study and Review of Actuarial A5sumptions published in December 2017 to the most recent study published in November 2021. These changes caused a slight net increase in the liability.
Medical long-term trends were updated from the Society of Actuaries ‘Long Term Healthcare Cost Trends Model v2023_lf’using baseline assumptions applied to both claims and premiums.Historical information is required only for measurement periods for which GASB 75 is applicable.Future years’ information will be displayed up to 10 years as information becomes available,* - Fiscal year 2017 was the first year of implementation, therefore only seven years are shown. 91 CITY OF AVALON
Schedule of OPEB Contributions
Year ended 3une 30, 2024
LAST TEN FISCAL YEARS*
Fiscal Year Ended June 30 2018 2019 2020 2021 2022 2023 2024 Actuarially Determined Contribution (ADC) $ - $ - $ 208,650 $ 237,527 $ 428,380 $ 303,495 $ 450,259 Contributions in relation to the ADC - - (208,650) (237,7) (428,380) (303,495) (450,259) Contribution deficiency (excess) - - - - - Covered employee payroll $ 4,961,654 $ 5,154,285 $ 5,406,225 $ 4,446,081 $ 4,446,081 $ 4,086,375 $ 4,782,333Contributions as a percentage of covered-employee payroll 0.00°?, O.OO% 3.86% 5.34°/o 9.64% 7.43°/o 9.42% Notes to Schedule
Actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2023were from the June 30, 2023 actuarial valuation.
Methods and assumptions used to determine contributions:
Actuarial Cost Method Entry Age Normal, Level Percentag of SalaryAsset Valuation Method Market value Inflation 2.30%
Salary Increases 2.80°!, per annum, in aggregate
Investment Rate of Return 5.10% per annum net of OPEB plan investment (1 - 5 years), 6.30% per annum (6+ years)Healthcare cost-trend rates Pre-Medicare: 7.40% in 2023 followed by 6.80% in 2024 decreasing to 4.l4% by 2075 Medicare: 4.2O°Io in 2023 followed by 4.17°h in 2024 decreasing to 4.14°Io by 2075PEMHCA: 3.OO°!o for all yearsDental: 4.00% for all years ‘Historical information is required only for measurement periods for which GASB 75 is applicable.
Future years’ information will be displayed up to 10 years as information becomes available. 92 CITY OF AVALON
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual Year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes $ 11,603,217 11,603,217 12,992,345 1,389,128
Licenses, permits and fees 478,750 478,750 366,856 (111,894)Fines, forfeitures and penalties 5,500 5,500 12,592 7,092 Investment income (loss) 40,000 40,000 846,281 806,281Intergovernmental revenue 8,120,785 8,120,785 1,628,048 (6,492,737) Charges for services 564,000 564,000 655,990 91,990Other revenue 43,500 43,500 111,693 68,193 Total revenues 20,855,752 20,855,752 16,613,805 (4,241,947) Expenditures:
Current:
Public safety 2,512,787 2,512,787 2,369,144 143,643Fire and ambulance 3,293,282 3,326,812 3,272,310 54,502Planning, building and engineering 1,138,988 1,141,718 813,847 327,871 Community services 2,307,400 2,311,650 889,023 1,422,627 Public works 1,488,193 1,520,711 1,441,258 79,453
General government:
Services and charges 2,009,766 2,177,470 2,204,403 (26,933)Contract services 879,250 879,250 1,502,402 (623,152)Special departmental 35,500 35,500 27,508 7,992 Capital expenditures 9,087,140 9,282,140 1,590,563 7,691,577 Debt service:
Principal 93,000 93,809 93,809 -
Interest 3,520 2,711 2,711 - Total expenditures 22,848,826 23,284,558 14,206,978 9,077,580 Excess of revenues over
(under) expenditures (1,993,075) (2,428,807) 2,406,827 4,835,633 Other financing sources (Uses):
Transfers in 24,550 24,550Transfers out (519,015) (519,015) (474,761) 44,254 Total other financing sources (uses) (519,015) (519,015) (450,211) 68,804 Net change in fund balance (2,512,090) (2,947,822) 1,956,616 4,904,437 Fund balance, beginning of year 15,529,217 15,529,217 15,529,217 15,529,217Fund balance, end of year $ 13,017,127 12,581,395 17,485,833 20,433,654 93 CITY OF AVALON
Local Transportation Fund - Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental revenue $ 1,548,530 1,548,530 1,405,504 (143,026) Total revenues 1,548,530 1,548,530 1,405,504 (143,026)
Expenditures:
Current:
Transportation 1,543,530 1,543,530 1,399,298 144,232
Total expenditures 1,543,530 1,543,530 1,399,298 144,232 Excess of revenues over
(under) expenditures 5,000 5,000 6,206 (287,258)
OTHER FINANCING SOURCES (USES):
Transfers out (6,206) (6,206)
Total other financing sources (uses) (6,206) (6,206)
Net change in fund balance 5,000 5,000 - (293,464)
Fund balance, beginning of year - - - -Fund balance, end of year 5,000 5,000 - (293,464) 94 CITY OF AVALON
Avalon Housing Authority Fund - Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2024
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Investment income $ 50,000 50,000 218,833 168,833Other revenue 10,000 10,000 5,411 (4,589) Total revenues 60,000 60,000 224,244 164,244
Expenditures:
Current:
Planning, building and engineering 12,972 12,972 12,432 540 Community Services 60,409 60,956 53,832 7,124General government:
Contract services 40,500 40,500 22,494 18,006
Capital Expenditures 600,000 600,000 50,187 549,813
Total expenditures 713,881 714,428 138,945 575,483
Excess of revenues over
(under) expenditures (653,881) (654,428) 85,299 (411,239) Net change in fund balance (653,881) (654,428) 85,299 (411,239) Fund balance, beginning of year 5,546,569 5,546,569 5,546,569 -Fund balance, end of year $ 4,892,688 4,892,141 5,631,868 (411,239) 95 CITY OF AVALON
Notes to Required Supplementary Information
Year Ended June 30, 2024
(1) Pension Information
Chancie in Benefit Terms: There were no changes to benefit terms that applied to allmembers of the Public Agency Pool. However, individual employers in the Plan mayhave provided a benefit improvement to their employees such as Golden Handshakes, service purchases, and other prior service costs. Employers that have done so may need to report this information as a separate liability in their financial statement asCaIPERS considers such amounts to be separately financed employer-specific liabilities.
These employers should consult with their auditors. Additionally, the figures above do not include any liability impact that occurred after the June 30, 2022 valuation date,unless the liability impact is deemed to be material to the Public Agency Pool.
In 2022, SB 1168 increased the standard retiree lump sum death benefit from $500 to $2,000 for any death occurring on or after July 1, 2023. For pooled plans this is a Class 3 benefit and there is no normal cost surcharge. The impact on the unfundedliability is included in the pool’s differences between expected and actual experience.
Chancies in Assumptions: There were no assumption changes in 2023. Effective with the June 30, 2021 valuation date (June 30, 2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-termexpected rate of return, CaIPERS took into account long-term market returnexpectations as well as the expected pension fund cash flows. In addition,demographic assumptions and the price inflation assumption were changed in accordance with the 2021 CaIPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates June 30, 2017 through June 30, 2021, 7.65% for measurement dates June 30, 2015 through June 30, 2016, and 7.50% for measurement date June 30, 2014. 96 CITY OF AVALON
Notes to Required Supplementary Information
Year Ended June 30, 2024
(2) Budgetary Information
The City follows the procedures outlined below in establishing the budgetary data reflected in the basic financial statements:
• On or before June 30 of the fiscal year, the City is required to adopt an annual operating budget for the ensuing fiscal year for the General and Special Revenue Funds. A public hearing is held to afford taxpayers an opportunity to be heard on the proposed budget.
• The operating budgets are reported on the modified accrual basis of accounting and are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The operating budget includes proposed expenditures and appropriations. Expenditures may not legally exceed appropriations at the fund level. Any unexpended budgetedappropriations lapse at year-end. • Once the budget is approved, the City Council must authorize any transfer amounts between individual funds and any revisions that alter the totalappropriations of a fund. rvlanagement may amend the budget for intrafund line-item transfers.
97 CITY OF AVALON
Nonmajor Governmental Fund
Special Revenue Funds
The following Special Revenue Funds have been classified as nonmajor governmental funds in the accompanying schedules:
Street — This fund receives and disburses the Citys share of the State Gasoline Taxes in accordance with the provisions of the State of California Streets and Highway Code.
Traffic Control and Safety — This fund is used to record traffic fines resulting from violations of the California Vehicle Code. The lines are deposited in this fund and are restricted by law for expenditures on traffic signs, signals, and other traffic control devices and the maintenance or construction of streets, bridges, and culverts.
Community Development Block Grant — This fund receives and disburses Community Development Block Grant monies from the United States Department of Housing and UrbanDevelopment. These funds are used for the redevelopment or initial construction of City streets and designated housing projects.
Development Impact Fees — This fund is used to account for monies received from developers for charges designed to mitigate the impact of new developments on public services.
Mclean / Hall I Putnam Trust — This fund is used to account for contributions received which have been restricted in use to fund the purchase of fire equipment. 98 CITY OF AVALON
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Assets:
Cash and investments
Receivables, net:
Accounts -
Interest 1,770
Due from other governments 26,231
Total assets 361,906
Liabilities:
Accounts payable
Accrued liabilities
Due to other funds ______________ Total liabilities ________________ Deferred Inflows of Resources:
Unavailable revenue ______________ Fund balances:
Restricted:
Capital projectsStreet projects
Unassigned
Total fund balances ______________ Total liabilities, deferred inflows of resources and fund balances ______________ Special Revenue Funds Traffic Control Street and Safety $ 333,905 5,722 5,722 6,185 3,642 9,827 $$ 5,712 5,712 356,194 356,194 $ 361,906 (4,105) (4,105) 5,722 99 Special Revenue Funds
Community
Development Development Mclean I Hall /
Block Grant Impact Fees Putnam Trust Total - 81,374 46,627 461,906 - - - 5,722 - 487 271 2,528 91,639 - - 117,87091,639 81,861 46,898 588,026
240 - - 12,137
-
-
- 3,642
91,639 - - 91,639
91,879 - - 107,418
91,639 - - 91,639
- 81,861 46,898 128,759 - - - 356,194
(91,879) - - (95,984)
(91,879) 81,861 46,898 388,969
91,639 81,861 46,898 588,026
100
CITY OF AVALON
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds
Year ended June 30, 2024
Special Revenue Funds
Traffic Control and
Street Safety
Revenues:
Taxes $ 187,259 -
Fines, forfeitures and penalties - 107,452
Investment income 10,478 -Intergovernmental revenue - - Other revenue ____________ ________________ Total revenues 197,737 107,452 Expenditures:
Current:
Community services
Public works 81,116 259,302
General government:
Contract services 26,190Special departmental - 7,777
Total expenditures 81,116 293,269
Excess of revenues over
(under) expenditures 116,621 (185,817)
Other financing sources (uses):
Transfers in 165,946Transfers out (18,344) -
Total other financing sources (uses) (18,344) 165,946
Net change in fund balance 98,277 (19,871)
Fund balance (deficit), beginning of year 257,917 15,766Fund balance (deficit), end of year $ 356,194 (4,105) 101
Special Revenue Funds
Corn rn unity
Developrnent Development Mclean I Hall
Block Grant Impact Fees / Putnam Trust Total - - 187,259 -
- 107,452 - 2,884 1,604 14,966
105,519 - 105,519 - 1,870 3,840 5,710105,519 4,754 5,444 420,906 - - 340,418 -
- 26,190 - -- 7,777
213,785 - - 588,170
(108,266) 4,754 5,444 (167,264)
20,013 - - 185,959 - -
- (18,344)
20,013 - - 167,615
(88,253) 4,754 5,444 351
(3,626) 77,107 41,454 388,618
(91,8]) 81,861 46,898 388,969
102
CITY OF AVALON
Street Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2024
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Taxes $ 187,624 187,259 (365)
Investment income - 10,478 10,478
Total revenues 187,624 197,737 10,113
Expenditures:
Current:
Public works 440,000 81,116 358,884
Total expenditures 440,000 81,116 358,884
Net change in fund balance (252,376) 116,621 368,997
Other financing sources (Uses):
Transfers out - (18,4) 18,344
Total other financing sources (uses) - (18,344) 18,344
Net change in fund balance (252,376) 98,277 (350,653)
Fund balance, beginning of year 257,917 257,917 -Fund balance, end of year $ 5,541 356,194 350,653 103
CITY OF AVALON
Traffic Control and Safety Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2024
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Fines, forfeitures, and penalties $ 90,000 107,452 17,452 Total revenues 90,000 107,452 17,452
Expenditures:
Current:
Public works 262,349 259,302 3,047
General government:
Contract services 16,000 26,190 (10,190)Special departmental 3,000 7,777 (4,777) Total expenditures 281,349 293,269 (11,920)
Excess of revenues over
(under) expenditures (191,349) (185,817) 5,532
Other financing sources (Uses):
Transfers in 189,015 165,946 (23,069)
Total other financing sources (uses) 189,015 165,946 (23,069) Net change in fund balance - (19,871) (17,537)
Fund balance (deficit), beginning of year 15,766 15,766 - Fund balance (deficit), end of year $ 15,766 (4,105) (17,537) 104
CITY OF AVALON
Community Development Block Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2024
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Intergovernmental revenue $ 200,000 105,519 (94,481)
Total revenues 200,000 105,519 (94,481)
Expenditures:
Current:
Community services 218,264 - 218,264
Capital outlay - 213,785 (213,785)
Total expenditures 218,264 213,785 4,479
Excess of revenues over
(under) expenditures (18,264) (108,266) (90,002)
Other financing sources (uses):
Transfers in 20,013 20,013
Total other financing sources (uses) 20,013 20,013
Net change in fund balance (18,264) (88,253) (69,989)
Fund balance (deficit), beginning of year (3,626) (3,62) -Fund balance (deficit), end of year $ (21,890) (91,7) (69,989) 105
CITY OF AVALON
Development Impact Fees Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2024
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Investment income $ - 2,884 2,884Other Revenue - 1,870 1,870 Total revenues - 4,754 4,754
Excess of revenues over
(under) expenditures (209,031) (209,O3)
Net change in fund balance (209,031) (209,031)
Fund balance (deficit), beginning of year 77,107 77,107 - Fund balance (deficit), end of year $ 77,107 (131,924) (209,031) 106
CITY OF AVALON
Mclean/Hall/Putnam Trust Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual Year ended June 30, 2024
Variance with
Final Budget
Positive
Final Budget Actual (Negative)
Revenues:
Investment income $ - 1,604 1,604Other revenue ___________ 3,840 3,840 Total revenues - 5,444 5,444
Net change in fund balance - 5,444 5,444
Fund balance, beginning of year 41,454 41,454 - Fund balance, end of year $ 41,454 46,898 5,444 107
CITY OF AVALON
Internal Service Funds
General Administration — This fund functions as the overhead fund for the City and alladministrative costs are to be allocated to user departments.
Insurance — This fund is used to account for the City’s general liability insurance, includingclaims, legal and other expenses, and the City’s workers’ compensation insurance, includingclaims, legal and other expenses.
Vehicle Maintenance — This fund is used to account for the maintenance of the vehicular fleet and equipment utilized by the other departments within the City. 108
CITY OF AVALON
Internal Service Funds
Combining Statement of Net Position
June 30, 2024
General Vehicle
Administration Insurance Maintenance Total
Assets:
Current assets:
Cash and investments $ 234,230 853,351 570,664 1,658,245 Receivables, net:
Interest receivable 863 4,946 3,275 9,084
Prepaid items 25,786 - - 25,786
Total current assets 260,879 858,297 573,939 1,693,115
Noncurrent assets:
Capital assets, net 135,199 - 344,646 479,845
Total noncurrent assets 135,199 - 344,646 479,845Total assets 396,078 858,297 918,585 2,172,960 Deferred outflows of resources:
Deferred outflows - pension related - 90,989 90,989
Total deferred outflows of resources - 90,989 90,989
Liabilities:
Current liabilities:
Accounts payable 142,297 21,848 39,278 203,423Accrued liabilities 33,249 36,933 3,030 73,212 Total current liabilities 175,546 58,781 42,308 276,635 Noncurrent liabilities:
Claims payable 72,303 - 72,303
Net pension liability - 275,113 275,113
Total noncurrent liabilities - 72,303 275,113 347,416Total liabilities 175,546 131,084 317,421 624,051 Deferred inflows of resources:
Deferred inflows - pension related - - 37,261 37,261
Total deferred inflows of resources - - 37,261 37,261
Net position:
Investment in capital assets 135,199 - 344,646 479,845Unrestricted 85,333 727,213 310,246 1,122,792 Total net position 220,532 727,213 654,892 1,602,637
109
CITY OF AVALON
Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Net Position Year ended June 30, 2024
General Vehicle
Administration Insurance Maintenance Total
Operating revenues:
Charges for services $ 2,868,153 971,201 804,192 4,643,546 Total operating revenues 2,868,153 971,201 804,192 4,643,546 Operating expenses:
Salaries and benefits 1,844,223 - 268,480 2,112,703Contractual services 573,439 140,642 1,752 715,833Office supplies 69,534 - - 69,534 Utilities and rent 123,673 - 78,312 201,985Repairs and maintenance 53 - 182,596 182,649 Operating supplies 64,556 - 17,750 82,306Other services and charges 68,113 755,460 399 823,972 Depreciation 19,307 - 53,396 72,703
Total operating expenses 2,762,898 896,102 602,685 4,261,685 Operating income (loss) 105,255 75,099 201,507 381,861
Nonoperating revenues (expenses):
Interest income 5,111 29,332 19,387 53,830
Gain (loss) on disposal of capital assets - - - - Total nonoperating revenues (expenses) 5,111 29,332 19,387 53,830 Changes in net position 110,366 104,431 220,894 435,691 Net position (deficit), beginning of year 110,166 622,782 433,998 1,166,946 Net position (deficit), end of year 220,532 727,213 654,892 1,602,637 110
CITY OF AVALON
Combining Statement of Cash Flows
Internal Service Funds
Year ended June 30, 2024
Cash Flows from Capital and Related Financing Activities:
Cash payments to acquire capital and other assets
Net cash provided by capital and related financing
activities
(124,56) - (242,33Q) (366,893)
(124,563) - (242,33) (366,893)
Cash Flows from Investing Activities:
Interest on investments 4,617 29,160 18,992 52,769
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash provided by operating activities
Depreciation
Changes in operating assets and liabilities:
(Increase) decrease in prepaid items(Increase) decrease in deferred outflowsIncrease (decrease) in accounts payableIncrease (decrease) in accrued liabilitiesIncrease (decrease) in claims payableIncrease (decrease) in net pension liabilityIncrease (decrease) in deferred inflows 45,787 750,881 491,603 1,288,271
$ 234,230 853,351 570,664 1,658,245
Net Cash Provided by Operating Activities: $ 308,389 73,310 302,399 684,098 There were no significant noncash capital, investing or financing activities for the year ended June 30, 2024.
General Vehicle
Administration Insurance Maintenance Totals
Cash Flows from Operating Activities:
Cash received from interfund services provided $ 2,868,153 971,201 804,192 4,643,546Cash payments to suppliers for goods and services (725,854) (897,891) (259,739) (1,883,484)Cash payments to employees for services (1,833.9l) (242,054) (2,075,964) Net cash provided by operating activities 308,389 73,310 302,399 684,098 Cash and cash equivalents, beginning of yearCash and cash equivalents, end of year Net increase (decrease) in cash and cash equivalents 188,443 102,470 79,061 369,974 $ 105,255 75,099 201,507 381,861
19,307 - 53,396 72,703
75,436 - 8,275 83,711 - - (2,757) (2,757)
98,078 13,871 12,533 124,482
10,313 (3,975) 262 6,600 - (11,685) - (11,685)
- (5,686) (5,686)- 34,869 34,869
111
STATISTICAL SECTION
City of Avalon
Net Position by Component Unit(1)
Last Ten Fiscal years Ended June 30, 2024
(Accrual easis of Accounting)
Fiscal Year
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 $ 15,080,630 $ 15,181,492 9 15,834,015 $ 18,416,980 $ 18,071,573 $ 17,160,473 $ 16,040,730 $ 15,015,392 $ 14,852,693 $ 15,830,489 9,302,317 10,054,472 9,647,347 5,878,170 5,917,827 5,964,954 5,928,238 6,294,798 6,253,866 7,215,479 (341,912) 469,861 362,983 (2,489,518) (3,118,841) (5,724,996) (3,928,254) 949,663 4,203,079 5,261,693 $ 24,041,035 $ 25,695,825 $ 25,844,315 $ 21,804,632 $ 20,470,859 $ 17,400,431 $ 18,037,714 $ 22,259,853 $ 25,309,638 $ 25,307,661 $ 9,291,816 9 11,289,620 $ 12,875,974 $ 13,797,766 $ 14,250,161 9 17,527,962 $ 18,080,970 $ 17,947,837 $ 18,490,061 $ 18,995,187 1,799,758 935,764 (2,241,522) (4,694,849) (6,414,133) (8,716,811) (8,186,659) (6,208,238) (3,731,759) (2,536,695) $ 11,091,524 $ 12,225,384 $ 10,634,452 $ 9,102,917 $ 7,836,028 $ 8,811,151 $ 9,494,311 $ 11,739,599 $ 14,758,302 $ 16,953,489 $ 24,372,446 $ 26,471,112 $ 28,789,989 $ 32,213,746 $ 32,321,734 $ 34,688,435 $ 34,121,700 $ 32,963,229 $ 33,342,754 $ 34,820,676 9,302,317 10,054,472 9,647,347 5,878,170 5,917,827 5,964,954 5,925,238 6,294,798 6,253,866 7,215,479 1,457,796 1,395,625 (1,878,569) (7,184,367) (9,932,674) (14,441,807) (12,514,913) (5,258,575) 471,320 3,224,995 $ 35,132,559 $ 37,921,209 $ 36,478,767 $ 30,907,549 $ 28,306,887 $ 26,211,582 $ 27,532,025 $ 33,999,452 $ 40,007,940 $ 45,201,150 Notes:
(1) Accounting standards require that the net posihen be reported in three component units in the Rnarcial statements: Investment in capital assets, net ot related debt; Restricted; and Unrestricted.
The net position is ccnsdered restricted only when -
(a) anecternal party, suns as the State ot Cal;tornia Sr the tederat gocerrment, places a restyction on hew the recerues may be used, or (I) enabling legislation is enacted by the City.
Scurse: City ct Aualnn, Finance Pepanmert
Governmental Activites:
Net tnuestment in Capital Assets
Restricted
Usrestnicted
Total Governmental AsRivities Net Position
Business-Type Activites:
Net tnnestment in Capita) Assets
Restricted
Unrestricted
Total Business-Type Activities Net Positioe
Primary Government Activites:
Net tnnestment in Capita) Assets
Rostysted
Unrestricted
Total Primary Government Activities Net Position
112
City of Avalon
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accasetiag)
Fiscal Year
EXPENSES:
Governmental Activites:
Public SafetyFIre aed AmbulancePlueeiv5, Building aed EegieeeriegCnmrnueily Services Public WarEs
Truespartatian
teterest as Lnsg Terre DebtDeeerat Deverameet
Total Gsvarsmestal Actieities
Business-Type Activites:
Hurber
Sewer
SaltwaterSelidwuste
Avalee Truesit
Tatal Busisess-Type AstleitiasTatal Primary esvarsmant Espesses PROGRAM REVENUES:
Governmental Activites:
Charges fee Services:
Public SutetyFire aed Ambeluece
Plueeieg, Building and Engineering
Cemmasity Services
Public Warbs
Truespertutive
Deeerul Daveremeet
Dperutieg Druets aad CantributiaasCupitul Druets urd Ceetribetiens Tatal Geeernmental Actieities
Business-Type Activites:
charges far Services:
HarharSewerSaltwaterSalidwaste
Avalee Trussit
Dperutivg Drunts and Ceetribulianscapital Drasts aed Ceetribetiens Tstal Business-Type ActiaitiasTatal Primary eaeerament Pragram Reeeeaes Net Revenues/(Expenses):(i)
Deveremeetal Activites
Basieess-Type Actiniles
Tstal Net Reeeeaes/(Eepesses)
GENERAL REVENUE AND TRANSFERS:Governmental Activites:
Tunes:
Praperty Tunes
Sales Tunes
Truesieet Dccapaecy Tunes
Dther Tunes
Licerses and Permits
teeeslmeet Earnings
Ptiscellueeans tecame
Special Item
Transfers
Total Gaaaremental Actieities
2014-2015 2015-2016 2016-2017 2017-2016 2018-2019
$ 1,060,447 5 1,365,466 $ 2,SS6,21S $ 1,911,585 $ 2,378772 2234,4t9 2,578,145 3,069,S7S 3,148, lOS 2,943,612
686,288 952,172 675,980 125,323 161,186
984,0th 265,565 565,819 928,576 SSt,336
t,7S0,393 2,075,435 1,975,045 2,461,024 2,891,356 - - 1,251,430 1,022,644 0,334,728 4,402,763 4,463,429 - 2,790,265 3,S8S,t54 3,tSt,hS1
$ 11,512,318 $ 11,703,215 $ 12,39s,512 $ 13,943,966 $ 14,361,307 $ 7,4S7,760 5 7,S45,28t 0 S,22t,3Ed $ 8466,170 S S,tlS,t82 2,018,034 2,319,334 2,511,536 2,450,158 2,779,788
552,334 S62,328 754,575 0,255,555 964,tlS
t,68S,882 t,708,225 t,SOS,826 2,064,605 2,t13,316 - 180,762 545,095 550,450 510,665 $ 11,664,818 $ 12,470,934 $ 14,928,941 $ 14,739,054 $ 15,484,330$ 23,177,136 $ 24,174,149 $ 27,327,453 $ 28,683,020 $ 2g,84s,637 $ 203,Otd 5 189,840 5 186,619 5 196,213 5 219,9S1
288,831 342,080 338,104 353,448 454,95921S,52S 275,880 4t4,048 390,381 300,019 tS9,875 47,546 SS,254 O1S,344 99,269
d2,3t5 11,238 28,332 28,959 15.954
32,82S SObS 41,088 39,299 4t,8tS
6,S1S,046 754,987 1,406,552 1,990,119 1,190,131
S6,326 1,386,397 2,505,747 62S,618 341,811
$ 7,643,717 $ 2,967,433 $ 4,975,234 $ 4,529,501 9 3,217,694 5 1,SSS,426 $ 7,3S4,462 $ 8,112,479 5 8,0S9,2SS $ E,ltI,hSl 1,158,987 1,783886 2,473,133 2,109,092 7,617,834
431,119 S8S,985 654,989 78S,689 710,011
1,891,206 1,982,07S 1,935,644 1,959,064 1,911,462 - 6,314 88,194 125,804 ltS,hh8 006,998 345,181 156,470 375,181 169,567 - 969,740 - - $ 11,657,866 $ 12,943,705 $ 13,420,489 $ 13,691,071 9 13,706,143 $ 19,201,613 $ 15,911,138 $ 18,395,723 $ 18,209,572 $ 16,923,837 $ (3,868,561) $ (8,735,782) $ (7,423,278) $ (9,415,461) $ (11,147,613) (106,967) 472,771 (1,S08,4S2) (1,011,903) (1,778,107)
$ (3,975,523) $ (8,263,011) $ (8,931,730) $ (10,473,446) $ (12,925,800) $ 1,093,676 $ 1,163,212 $ 620,272 $ 867,770 $ 1,271,952 1,465,691 1,703,660 1,543,409 1,046,275 1,SS4,762
4,990,710 4,911,210 5,310,616 S,340,876 5,396,440
1,246,037 1,266,762 1,333,246 1,246,321 1,234,741
16,907 407,396 14,991 134,172 246,988
71,091 1,281,166 59,318 61,500 197,957 - - - (347,980) - 50,909,179 (351,240) (1,350,248) (898,898) (69,100) $ 19,799,497 $ 10,390,572 $ 7,571,768 $ 8,058,444 $ 9,813,840 Business-Type Activitest
Tunes:
Dther Tunes
leeestmeet Fureiegs
I’tiscellueeass lecame
Transfers
Total Basiness-Tppe ActieitiesTotal Primary Gaaeremeet eeseral Raeenae and Traesfnrs CHANGE IN NET POSITION:
tlaneremestul Activites
Business-Type Activ,tes (2)
Total Net Reeenaes/(Eepessas)
$ 244,346 $ 292,415 $ 260,505 $ 1/9,871 $ 219,811
12,476 17,434 87,6S1 73,804 200,921
351,240 1,310,248 898,098 89,500
$ 256,822 $ 661,089 $ 1,698,404 $ 1,152,653 $ 511,298$ 20,056,319 $ 11,051,661 $ 9,270,172 $ 9,211,097 $ 10,326,138 9 11,930,936 $ 5,614,790 $ 140,490 $ (1,357,021) $ (1,333,773) 149,860 1,133,860 109,952 94,670 (1,266,809)
$ 16,080,796 $ 2,788,650 $ 338,442 $ (1,262,351) 5 (2,600,662) Nales:
(1) Net ceeeeees/(Eapeases( is an indicutien at the degree In ,nhich a pragrum is sapparted with its awe fees and pregrum specilic grants verses its reliance en feeding tram I(1) Prier parind ud(ustmeet iscreusieg aperatieg enpeeses ie Saud Waste by $161,117 recerded ie Fiscal Tear 2023-2024.
Searce: City at Analan, Finance Department
113
City of Avalon
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis af Accauntiog)
Fiscal Year
EXPENSES:Governmental Activites:
Public SafetyFire acd AmbulancePlanning, Scilding and bngineeringCommunity Snrnices Public Warks
Transportation
Interest no Long Term DebtGeneral Government
Total Oooernmental Actinities
Business-Type Activites:
Harbor
Sewer
SaltwaterSolidwaste
Analon Transit
Total Basienss-Tppe Actinities
Total Primarp eonernment Eape0505
PROGRAM REVENUES:
Governmental Activites:
Charges for Snrnican:
Public SolelyFire and Ambulooce
Planning, Sodding and bnginnering
Community Services
Public Works
Transportation
General Goneramoot
Gpnrating Grants and ContribotiansCapital Grants and Contributions Total eoaeromental Actinities
Business-Type Activites:
Charges for Services:
HarborSewerSaltwaterSolidwastn
Analno Transit
Gporating Grants and CootribotionsCapital Grants and Contributions Total Bosiness-Tppe ActinitinsTotal Primary tloneremeot Program Reneeues Net Revenues/(Expensos):(t)
Governmental Activites
gosieess-Type Actinites
Total Net Reneooes/(Eopenses)
GENERAL REVENUE AND TRANSFERS:Governmental Activites:
Taaes:
Property Taurs
Sales Tones
Transient Gccupaocy Tones
Gther Tones
Liceoses and Permitstnnestmeot burningst’tiscellooeoos tncomeSpecial ttom Transfers
Total Gonnrsmeotol Actinities
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
$ 2,007,059 $ 2,125,094 $ 2,342,g99 $ 2,t25,3b9 $ 2,35g,g53 3,309,3)2 2,891,204 2,895,151 2,g49,g73 3,256,894
1,092,162 106,440 908,925 962,153 8)9,764
1,505,265 958,451 990,004 1,020,783 t,t37,h73
2,334,979 t,709,b4 1,045,101 t,H45,t53 2,289,884
1,200,303 t,253,270 1,045,595 t,722,4S5 0,399,298
2,90s,gsS 2,809,020 - 3,448,551 3,207,769 4,249,294
$ 14,162,318 $ 12,458,131 $ 14,282,888 $ 13,789,188 $ 18,872,580 $ 8,025,524 $ 7,079,561 $ h,478,t96 $ 7,801,989 9 8,299,465 2,527,883 2,051,585 2,938,353 2,985,838 3,213,285
539,878 692,250 691,097 868,82) 823,082
1,990,056 2,393,764 2,572,101 2,468,136 2,805,509
999,684 161,866 234,559 240,577 354,128
$ 14,082,221 $ 52,92g,o26 $ 12,912,366 $ 14,078,967 $ 15,495,069$ 28,244,580 $ 25,384,157 $ 27,198,252 $ 27,861,122 $ 31,067,649 $ 195,190 $ 250,847 $ 278,584 $ 272,88) $ 283,537
394,142 365,597 482,507 527,471 530,886380,421 294,4)5 313,598 269,839 130,050 56,990 72,000 73,078 83,52) 69,07722,569 44,416 30,906 40,090 46,943 46,409 40,681 42,589 44,5)7 50,383
1,902,09) 2,165,002 3,784,571 2,963,290 3,624,565 - - 24,302 - 105,519 $ 3,005,826 $ 3,233,686 9 5,096,195 $ 4,202,494 $ 4,842,468 O 6,902,200 $ 7,311,550 $ 8,hbt,010 $ 0,939,972 $ 9,075,929 2,027,135 2,800,759 2,981,666 3,161,190 3,23S,249
775,360 834,085 874,239 000,b39 800,317
1,045,020 6,984,344 2,340,729 2,b49,tOO 2,777,545
92,503 43,114 78,463 01,901 00,368
2,203,254 31,310 8,895 296,603 432,544
$ 14,446,368 $ 13,013,830 $ 14,951,602 $ 16,038,173 $ 16,489,912$ 17,452,194 $ 16,247,516 $ 20,047,797 $ 20,240,667 $ 21,332,420 $ (11,158,529) $ (9,221,445) $ (9,108,691) $ (9,586,685) $ (10,730,112) 304,143 84,804 2,039,236 1,962,200 994,883
$ (10,792,386) $ (9,136,641) $ (7,147,455) $ (7,624,455) $ (9,739,229) $ 839,459 $ 1,259,528 $ 1,055,691 $ 1,027,008 $ 1,107,715 1,427,939 1,490,722 2,131,299 2,219,130 2,191,034
4,504,444 6,021,549 8,703,537 8,318,815 7,868,508
1,078,861 1,178,644 1,501,912 1,494,539 1,500,145
4,954 9,039 5,289 8,028 4,433
305,052 36,370 (22,393) 71,453 1,130,192
251,094 124,370 140,819 101,742 526,912
(297,000) (261,500) (113,324) (605,469) (280,802)
$ 8,114,603 $ 9,858,728 $ 13,408,830 $ 12,636,446 $ 13,728,135 Business-Type Activites:
Tooes:
Gther Tones
Investment Earnings
t’tiscelloneous Income
Transfers
Total Bssieess-Tppe ActinitiesTotal Primary eoneromest General Renesue and Troostero CHANGE IN NET POSITION:
Gunoromental Activites
Ooni005s-Typo Activites (2)
Total Net Rooe0005/(topeoses)
$ 169,722 $ 191,884 $ 236,156 5 231,644 $ 205,514
165,756 144,972 (246,504) 135,665 406,875
103,076 3,719 460,230
297,000 261,500 113,324 685,469 208,802
$ 632,478 $ 598,356 $ 206,052 $ 1,056,497 $ 1,301,481$ 8,747,081 $ 10,457,084 $ 13,614,882 $ 13,692,943 $ 15,089,616 $ (3,041,926) $ 637,283 4,222,139 $ 3,049,705 $ 2,990,023 996,621 603,160 2,245,208 3,018,703 2,195,181
$ (2,045,305) $ 1,320,443 $ 6,467,427 $ b,068,488 $ 5,193,210 Notes:
(1) Net Recoones/(topenses) is an indication ot the degree to which a prograors and other general reneones.(1) Prior period ad)outmeot increasing operating eopnoses in Solid Waste by Source: City of Analvo, Finance Department
114
City of Avalon
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 General Fund:
Noespeedable
Doe from ACIA Soccessor Agency $ - $ - $ 757,797 $ 1,814,260 $ 1,679 $ 937 $ - $ - $ - $ - Doe from Hospital - - 300,000 340,000 340,000 - - - - - Prepaid topenses - - - - - - - 2,750 318,862 108,876
Restricted - - - - - - - 326,807 326,807 1,096,658
unassigned 5,689,906 7,317,587 3,604,944 2,058,271 4,992,369 4,552,307 6,757,313 12,259,253 14,893,548 16,188,299 Total General Fund $ 5,689,906 $ 7,317,587 $ 4,662,741 $ 4,212,531 $ 5,334,048 $ 4,553,244 $ 6,787,313 $ 12,888,810 $ 18,829,217 $ 17,485,833 All Other Governmental Funds:
Nonspendable
DoefromACtASocceosorAgency $ - $ - $ - $ 6,043 $ 6,043 $ - $ - $ - $ - $ - Restricted
Low and Moderate Income Hoooing 8,646,403 8,980,482 9,000,663 5,790,195 5,848,223 5,896,987 5,773,570 5,718,076 0,046,569 9,631,869 Commonity Development 138 138 138 566 - - - - (3,626) - Capital Projects 57,912 53,693 57,378 51,278 36,834 39,255 79,398 90,663 115,561 128,759 Street projects 597,864 630,641 599,166 25,630 32,770 68,920 73,270 159,202 257,917 356,594 unassigned (207,299) (40,687) (193,419) (20,500) (7,926) (21,849) (360,249) (5,421) tS,766 (95,904) Total All Other Governmental Funds $ 9,095,018 $ 9,624,257 $ 9,483,928 $ 5,853,412 $ 5,915,944 $ 5,943,313 $ 5,564,989 $ 5,962,570 $ 5,935,187 $ 6,020,837 $27
- $24
$21
$18
i I i i I I I 2014- 2010- 2015- 2017- 2018- 2019- 2020- 2021- 2022- 2023- 2015 2016 2017 2016 2019 2020 2021 2022 2023 2024
•Total General Fund •Total Al) Dther Governmental Foods Soorce: City of Avalso, Finance Department
115
City of Avalon
Changes in Fund Balances - Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 -_2023-202-3 Revenues:
Taxes $ 9,796,320 $ 9,048,850 $ 8,741,200 $ 9,205,393 $ 11,421,349 $ 5,253,104 $ 10,220,046 $ 13,822,205 $ 13,475,318 $ 13,179,654 Licenses, Permits, and Fees 424,997 440,450 569,623 558,445 488,735 547,566 505,968 601,823 510,508 366,856 Fines, Fsrfeitures, and Penalties 94,868 63,340 72,132 64,506 74,579 86,301 87,505 102,472 110,587 170,044 Ienestment Incnme 11,576 405,286 50,769 501,345 218,537 265,371 5,353 (56,035) 11,851 1,085,080 tntergunersmental Renenue 6,140,662 2,829,007 2,526,094 2,288,133 2,084,349 1,500,811 1,299,941 3,723,191 2,847,178 3,139,071 Charges fnr Sernices 501,018 421,749 421,730 504,557 523,990 473,709 444,787 582,481 627,374 655,300 Other Renenue 77,094 1,284,088 123,141 561,500 214,844 270,693 185,394 180,663 237,618 122,514 Total Revenues $ 16,046,535 $ 14,492,748 $ 12,504,689 $ 13,283,879 $ 15,026,383 $ 11,402,555 9 12,748,994 $ 18,956,800 $ 17,619,632 $ 18,664,459 Bxpenditures:
Public Safety $ 1,570,188 $ 1,632,780 $ 1,714,072 $ 1,827,490 $ 1,848,800 $ 1,864,391 $ 1,642,918 $ 1,817,413 $ 2,108,816 $ 2,389,044 Fire and Ambulance 2,189,975 2,508,000 2,741,870 2,947,419 3,031,281 2,967,159 2,748,346 2,687,161 2,874,513 3,272,310 Planning, Building and hngineerieg 660,082 944,372 930,193 727,013 820,262 885,304 636,726 861,110 999,333 826,279 Cummunity Sernices 607,458 208,905 527,990 752,602 789,095 900,595 702,429 800,882 980,241 042,894 Public Warks 1,117,324 1,381,382 1,807,501 1,910,548 2,154,717 1,626,404 1,083,412 1,226,449 1,420,470 1,781,32k Transpnrtatinn - - 1,265,438 1,297,965 1,334,728 1,266,363 1,253,270 1,845,595 1,727,405 399,298 Oeneral Onnernmenc 4,080,975 4,016,804 3,299,298 3,206,762 2,945,815 2,230,015 2,285,860 3,093,899 3,806,835 3,700,774 Capital Eupenditures 83,828 1-292,380 2,515,927 307,230 710,447 185,113 143,776 175,079 46b,63u 1,854,030 Debt Setvice
Phncipul - - 134,468 120,984 118,468 119,834 123,299 126,860 170,532 53,900 Interest - - 9,309 16,025 4,221 13,812 13,713 10,150 5,453 2,7u1 Total Espenditures $ 10,309,588 $ 11,984,588 $ 14,945,866 $ 13,114,038 $ 13,752,834 $ ii,sss,ggo $ 10,631,749 $ 12,644,398 914,021,139 416,303,391 Encess of Revenues Oeer (Under)
Enpenditures $ 5,736,947 $ 2,508,160 $ (2,441,177) $ 169,841 $ 1,273,549 $ (456,435) $ 2,117,245 $ 6,312,402 $ 3,598,495 $ 2,331,098 Other Financing Sources (Uses):
Fruceeds frnm Adnances/Capital Leases $ - $ - $ 988,250 $ - $ - $ - $ - $ - $ $ l3aie/)Lnss) - - - - - - - - - -
Transfers In 122,143 116,818 - 349,000 181,500 144,697 122,538 86,260 133,230 2t1,50$ Transfers Oct (122,143) (468,008) (1,300,248) (1,247,898) (271,000) (441,097) (384,338) (199,584) (518,599) )450,3Il Total Other Financing Sources (Uses) $ - $ (351,240) $ (383,998) $ (898,898) $ (89,500) $ (297,000) $ (261,500) $ (113,324) $ (685,469) 9(283,802) Specialltems $ - $ - $ - 9(3,200,580)9 - $ - $ - $ - $ $ Net change in Fund Balances $ 5,736,947 $ 2,156,920 $ (2,825,175) $ (3,929,637) $ 1,184,049 $ (753,435) $ 1,855,745 $ 6,199,078 $ 2,913,024 Debt Service as a Percent of Non-capital
Eependitures 0.00°/n 0.00°/n 1.16°/n 1.07°/n 0.93°/n 1.ln/n 1.3°/n 1.1°/n l.0°/n —— 0.2 °/c Snurce: City nf Analnn, Finance Department
116
City of Avalon
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
2023-2024
Source: City of Avalon, Finance Department
Gas Taxes
10/0
Property Transient Business
Property Tax in Lieu Sales Occupancy License Admission Franchise Other Fiscal Year Taxes of VIF Taxes Taxes Taxes Taxes Taxes Gas Taxes Taxes Total__— 2023-2024 1,356,914 460,121 2,191,035 7,868,506 108,313 842,177 165,279 187,259 - 13,179,604 2022-2023 1,276,858 439,188 2,219,730 8,318,815 99,679 783,804 168,878 168,366 - 13,475,318 2021-2022 1,304,641 419,963 2,137,299 8,703,537 90,308 846,740 145,723 173,994 - 13,822,205 2020-2021 1,358,504 410,790 1,490,722 6,021,549 85,289 550,464 133,670 169,058 - 10,220,046 2019-2020 1,085,289 381,446 1,427,939 4,504,444 98,253 468,191 131,878 155,664 - 8,253,04 2018-2019 3,086,212 373,928 1,554,762 5,396,940 70,697 647,521 142,730 148,559 - 11,421,349 2017-2018 867,778 360,633 1,646,275 5,348,876 94,699 679,904 111,084 96,144 - 920,393 2016-2017 620,272 329,816 1,543,489 5,310,656 89,921 654,592 116,814 75,640 - 8,741.200 2015-2016 1,163,212 314,624 1,703,660 4,915,216 75,330 666,430 124,882 85,496 - 9,048 S50 2014-2015 1,093,876 302,221 1,465,691 4,990,716 84,973 621,166 125,304 112,373 - 8,796,3L0 Change from
Base Year 2014-
2015 24.0% 52.2% 49.5% 57.7% 27.5% 35.6°fo 31.9% 66.6°/a N/A — Admission... Franchise
Taxes \\ Taxes
6°/o \\\ 1°/ 2roperty Tax
/in Lieu of VLF
40/o
Tra nsient
Occupancy
Taxes
60°/o
117
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City of Avalon
Top 25 Sales Tax Producers
(Miscellaneous Information)
Calendar Year and Ten Years Ago
I 2023 1 2014
Taxpayer Business Type Taxpayer Business Type —
1 Abes Liquor Store Convenience Stores/Liquor Abes Liquor Store Convenience Stores/Liquor 2 Bluewater Grill Casual Dining Avalon Fuel Dock Fuel / Ice Dealers 3 Buffalo Nickel Casual Dining Bluewater Grill Casual Dining 4 Buoys & Gulls Family Apparrel Buoys & Gulls Family Apparrel 5 Carnival Cruise Lines Transportation Non-Auto Carnival Cruise Line Transportation Non-Auto 6 Casino Ballroom Casual Dining Casino Ballroom Casual Dining 7 Catalina By The Sea Art/Gift/Novelty Stores Catalina By The Sea Art/Gift/Novelty Stores 8 Catalina Pottery & Tile Co. Leisure/Entertainment Catalina Cantina Casual Dining 9 Catalina Sportswear & Souvenir Art/Gift/Novelty Stores Catalina Yamaha Golf Cars Boats/Motorcycles 10 Chets Hardware Building Materials CC Gallagher Casual Dining 11 El Galleon Casual Dining Chets Hardware Building Materials 12 Island Threadz Family Apparrel El Galleon Casual Dining 13 Latitude 33 Art/Gift/Novelty Stores Island Threadz Family Apparral 14 Leos Catalina Drugstore Drug Stores Lobster Trap Casual Dining 15 Lobster Trap Casual Dining Luau Larrys Casual Dining 16 Luau Larrys Casual Dining Maggies Blue Rose Casual Dining 17 M Restaurant Casual Dining Mi Casita Casual Dining
18 Maggiea Blue Rose Casual Dining Mi Casita Restaurant Casual Dining 19 Mi Casita Restaurant Casual Dining Original Jacks Casual Dining 20 NDMK Fish House Casual Dining Pancake Cottage Casual Dining 21 Original Jacks Casual Dining Pebbly Beach Building Supply Building Materials 22 Pancake Cottage Casual Dining Pic Nic Fry Casual Dining 23 Steves Steakhouse Fine Dining Riatorante Villa Portofino Fine Dining 24 The Locker Room Casual Dining Steves Steakhouse Fine Dining 25 Vons Grocery Stores Vons Grocery Stores
Percentage of Total Sales Tax Collected 72.1.8% 67.10%
Note: The names are listed in alphabetical order and not by sales tax volume.
Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controllers Office, The HdLCompanies 119
City of Avalon
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Apparel Stores $ 5,478 $ 5660 $ 6,585 $ 6,235 $ 5,549 $ 4,827 $ 2,534 $ 5,770 $ 7,963 $ 7,897 Eating and Drinking Places 45,743 49,245 51,173 53,264 50,072 50,311 29,687 58,485 67,578 65,142 Other Retail Stores 22,111 22,919 21,859 23,029 22,548 22,978 19,446 24,251 28,319 27,523 All Other Outlets 6,349 5,382 5,526 6,674 10,119 8,015 4,002 6,116 35,342 34,678 Total $ 79,681 $ 83,206 $ 85,143 $ 89,205 $ 88,288 $ 86,131 $ 55,669 $ 94,622 $ 139,202 $136,140 , $160
t
$140
C
$120
$100
I I 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
•Appsrel Stores C Eating and Drinking Pisces •Other Retail Stores •All Other Outlets Sssrce: State Board of Equalization, California Department of Tases and Fees Administration, State Controller’s Office, The HDL Companies 120
City o Avalon
Ten Lsrest Propetty Taxprtyors
Currant fiscal Year antI Ten Ycars Ago
[iiJYeTiöEI L_Us!L!s!r2!°’5Zi
Percent of Percent of
Assessed Total Total
Owner/Taxpayer Primary Use Valuation Assessed Assessed Valuation Assessed Santa Catalina Island Cnnapany Rnnntcnnial $ 75,008,317 6.67% $ 52,686,239 7.Oh°/a racisca Catalina Island Inn LLC Censrnnrcial 16,132,83a 1.42°/n O.OO°/a Vans Cnmpanies, Inc. Cnmmercial 13,593,297 1.SS°/a 0.00°/a Jack A. Tucny Rnsidnntial 12,793,178 1.13°/a 6,719,045 l.l7°/a Olanay A. Hagenak Tnust Residential 9,882,114 O.87°/a 9,064,827 1.21°/a Pnrtnr Lntnnprises Commercial 9,682,126 O.OS°/a 0,217,304 1.10% Chimes Tnwer Innestmenn, Inc. Cnmmercial 9,208,740 0.82% 5,500,000 0.74°/a Santa Catalina Island Consernancy Rnsidnntial 8,516,826 0.75°/s 0.00% Catalina Real Esnatn Partnnrs LLC Cnmmercial 0,104,412 0.72% o.ooa/a Mckinney Capital 1-lermosa Partners LLC Commercial 8,072,874 O.71°/a O.OOa/a Hamilton Land Hnldiags, Inc. Vacann 7,808,646 t.OS°/a
Ohs Hwa Banaa Tnast Residential 5,690,208 0.76°/a
Hnrmnsa NNN LLC Cnmmnrcial 5,377,531 O.72°/a
Mark 0. and Kanna Engmao Trast Residential 5,203,871 O.7O°/a Bird Park Land Holdings, Inc. Rnsidnntial 4,656,720 O.h2°/a
0.00°/a
Top Ten Totals (Secured and Uesecured) $ 171,454,718 ls.o9% $ 112,924,391 15.14% All Others 964,460,742 64.9l% 633,168,072 84.86a,a
Total Assessed Valuation $ 1,135,915,460 lOO.OO% $ 746,092,463 100.00%Source: Las Angeles Coanty Assessar 2004/15 and 2623/24 Combined Tan Rails aad Ike SeP Non Unitary Taa Roll 121
City of Avalon
Assessed Valuation of Taxable Property
Last Ten Fiscal Years
Total Assessed Total Direct
Fiscal Year Residential Commercial Vacant Recreational Industrial All Others* Value (Note) Tax Rate 2023-2024 $ 793,327,701 $ 158,688,470 $ 49,000,881 $ 2,947,291 $ 2,904,669 $ 129,046,448 $ 1,135,915,460 0.16593 2022-2023 756,866,058 148,945,395 48,275,205 2,889,505 2,847,718 124,412,223 1,084,236,104 0.16523 2021-2022 721,410,771 142,424,635 38,292,260 2,832,851 2,791,885 117,689,709 1,025,442,111 0.16654 2020-2021 697,204,734 141,867,236 35,578,343 2,803,806 2,763,262 119,202,205 999,419,586 0.16536 2019-2020 661,578,073 118,902,938 37,148,644 5,349,834 2,709,084 108,480,986 934,169,559 0.16594 2018-2019 625,996,028 118,334,096 59,913,419 5,452,915 2,569,982 106,271,317 918,537,757 0.19606 2017-2018 607,627,793 111,456,862 57,086,073 5,345,999 2,519,593 101,416,608 885,452,928 0. 189 2016-2017 573,888,182 102,347,039 28,485,444 3,072,858 2,470,191 99,831,606 810,095,320 0.16515 2015-2016 548,937,353 97,234,833 27,421,249 3,026,704 2,433,089 97,660,168 776,713,396 0.15597 2014-2015 521,666,092 94,542,077 29,897,505 . 2,967,419 2,385,431 . 94,633,939 746,092,463 0.16555 Source: Los Angeles County Assessor 2013/14 - 2022/23 Combined Tax Rolls Assessed Valuation by Category
(Secured -Before Exemptions)
All Others*
11.4% Fiscal Year Ended June 30, 2024
Industrial
O.3%
RecreationaL_
O.3%
Commercial
Vaant
43%
14.O%
69.8%
Residential
In 1978, California voters passed
Proposition 13 which set the property
tax at a fixed amount of one percent.
This amount is shared by all taxing
agencies for which the subject
property resides within. In addition
to the one percent fixed amount,
property owners are charged taxes
as a percentage of assessed proo’rty
values for the payment of any voter
approved bonds. Assessed valuation
is based on 100 percent full value in
accordance with Section 135 of the
California Revenue and Taxation
Code.
122
City of Avalon
Demographic and Economic Statistics
Last Ten Calendar Years
% of Pop 25+ % of Pop 25+
Personal Income Per Capita Unemployment with High School with aciers Calendar Year Population (In Thousands) Personal Income Rate Median Age Degree Degree 2023 3,313 $ 139,895 $ 42,225 0.00% 41.9 80.7% 16.4%
2022 3,351 141,186 42,132 0.00% 45.0 85.3% 19,C%
2021 3,394 149,800 44,136 0.00% 46.7 88.4% 22.1%
2020 3,973 127,342 32,051 0.10% 42.1 86.5% 22.1%
2019 3,929 135,070 34,377 0.40% 39.8 90.0% 2 .3°/o
2018 3,845 114,686 29,827 l.30% 34.5 85.0%
2017 3,867 120,838 31,248 2.40% 34.2 80.3°/a
2016 3,718 119,077 32,027 4.40% 34.8 76.9% 21.1%
2015 3,678 107,558 29,243 5.60% 34.7 75.5% 1t.6c/
2014 3,822 104,692 27,392 6.90% 34.7 74.0%
Notes and Data Sources:
Population: California State Department of Finance
Unemployment Data: California Employment Development Department Income, Age and Education Data: U.S. Census Bureau, most recent American Community Survey 123
City of Avalon
Visitors to Catalina Island by Transportation Type
Last Ten Fiscal Years
Fiscal Year
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2C3-224 Transportation Type:
Cross Channel 696,066 692,171 702566 712,357 677,223 499,661 550,676 747,840 679,219 Cruise Ship 249,662 266,073 278,513 278,380 262,365 180,818 47,893 134,306 314,209 Private Soat 53,930 51,356 55,252 59,540 55,805 51,897 61,906 57,540 52,$aO Private Aircraft 19,713 18,571 15,738 16,685 10,620 16,197 19,730 20,421 17,688 Helicopter 18,468 20,197 18,660 20,473 18,601 10,957 14,301 18,071 14,598 ________
il116
All Arrivals 1,037,839 1,048,368 1,070,729 1,087,435 1,024,614 759,530 694,506 978,178 1,078,154 1731,412
1.2 =
_
I I 111111 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2021- 102 2015 2016 2017 2018 2019 2020 2021 2022 2023 2;2
a Cross Channel a Cruise Ship i: Private Scat U Private Aircraft U Helicopter Source: Lsve Catalina Island Tsurism Authsrity; Avalon Passenger Countys by Month, Year and Type 124
Function
City of Avalon
Full-Time Equivalent Employees
by Department
Last Ten Fiscal Years
2014-2015 2015-2016 20 16-2017 2017-2018 2018-2019 20 19-2020 2020-2021 2021-2022 2O22-2O3 t620-2O?4 Administration
Community Services
Finance
Fire
Harbor
Planning
Public Works
Total Full-Time Employees
Source: City of Avalon, Finance Department
7.0 7.0 9.0 10.1 8.8 9.3 7.2 9.5 8.0
4.2 4.9 4.9 4.8 5.4 5.6 4.8 5.2 5.7
4.2 4.2 5.7 5.6 5.7 6.0 4.0 4.7 5.0 5.0
14.5 14.5 12.4 12.4 12.4 13.0 13.0 13.0 15 0 S.0
25.9 25.9 27.2 24.2 24.5 24.9 19.8 19.6 21.1 2 L
3.0 3.0 4.5 2.9 2.2 3.0 1.5 2.7 3.0
15.2 14.8 19.4 19.9 21.2 21.9 14.5 14.0 0
74.0 74.2 83.1 79.9 80.2 83.7 64.8 68.7 — 72.&
CITY OF AVALON
EMPLOYMENT
Last Ten Fiscal Years
P uL: Vu’
Haruc
P -12
P
S
N Adu rItr:Io.,
go_s
30.0 70.0
60.0 50.0
40.0 30.0
20.0 10.0
‘C,
‘1
125
is r 18201 Von Korninn Avnun ‘$u16’ 1100 rvin& CA 92612 CERTIFIED PUBLIC ACCOUNTANTS Mom: 949.474.2020 [Six: 949.263.5520 Independent Accountant’s Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets
City CouncilCity of Avalon
Avalon, California
We have performed the procedures enumerated below on the City of Avalon, California (City) appropriations limit worksheets for compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution for the year ended June 30, 2024. The City is responsible for compliance with Section 1.5 of Article XIIIB of the California Constitution.
The City has agreed to and acknowledged that these procedures are appropriate to meet the intended purpose of evaluating compliance with the requirements of Section 1.5 ofArticle XIIIB of the California Constitution and the League of California Cities publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines for the year ended June 30, 2024. This report may not be suitable for any other purpose. The proceduresperformed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures performed and the results of those procedures were as follows:
1. We obtained the worksheets referred to above and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.
Results: No exceptions were noted as a result of our procedures.
2. We recalculated the mathematical calculations reflected in the City’s worksheets.
Results: No exceptions were noted as a result of our procedures.
3. We compared the current year information used to determine the current year limit and found that it agreed to worksheets prepared by the City and to information provided by the State Department of Finance.
Results: No exceptions were noted as a result of our procedures.
City Council
City of Avalon
Avalon, California
4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council as the limit for the prior year.
Results: No exceptions were noted as a result of our procedures.
We were engaged by the City to perform this agreed-upon procedures engagement andconducted our engagement in accordance with standards established by the AmericanInstitute of Certified Public Accountants. We were not engaged to and did not conduct anexamination or review, the objective of which would be the expression of an opinion orconclusion, respectively on the worksheets referred to above. Accordingly, we do notexpress such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriationlimit for the base year, as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Management of the City of Avalon, California and is not intended to be, and should not be, used by anyone other thanthe specified party.
LLf
Irvine, California
February 12, 2025
2 D\/’sF ‘ 8201 Von Kcumon A\.’ornIe I Sufte 100 lhvine.CA92&L’ CERflFIEO PUBLIC ACCOUNTANTS Mum: 9494742020 I I1jx: 9492635520 To the Honorable Mayor and Members of City Council
City of Avalon, CaliforniaWe have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Avalon (the “City”) as of and for the year ended June 30, 2024, and have issued our reportthereon dated February 12, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and, if applicable, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to theMayor. Professional standards also require that we communicate to you the following information related to our audit.
Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated June 10, 2024, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting.Accordingly, as part of our audit, we considered the internal control of City’s solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financialreporting process. However, we are not required to design procedures for the purpose ofidentifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previouslycommunicated to the Mayor.Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, and our firm have complied with all relevant ethical requirements regarding independence.
We identified self-review threats to independence as a result of non-attest services provided. Those non-attest services included the preparation of the financial statements and recording journal entries detected during the audit process. To mitigate the risk, management has compared the draft financial statements and footnotes to the underlying accounting records to verify accuracy and has reviewed a disclosure checklist to ensure footnotes are complete and accurate.Additionally, we utilize a quality control reviewer to perform a second review of journal entries and the financial statements. We believe these safeguards are sufficient to reduce the independence threats to an acceptable level.Significant Risks Identified During the planning stage of the audit, we identified the following as significant risks:
Measure H Accounting and Revenue Recognition.
Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted the City is included in Note 1 to the financial statements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significantunusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting EstimatesAccounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
• Management’s estimate of transactions related to the net pension liability based on actuarial information. We evaluated the key factors and assumptions used todevelop the amounts by the actuary and determined that it is reasonable in relation to the financial statements taken as a whole.
• Management’s estimate of transactions related to net OPEB liability based on actuarial information. We evaluated the key factors and assumptions used todevelop the amounts by the actuary and determined that it is reasonable in relation to the financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitivedisclosures affecting the City’s financial statements were:
• The disclosure of pension obligations in note 6 of the financial statements.• The disclosure of OPEB obligations in note 7 to the financial statements.
The financial statement disclosures are neutral, consistent, and clear.
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. There were no significant unusual transactions identified as a result of our audit procedures.
Significant Difficulties Encountered during the Audit
We encountered no difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further,professional standards require us to also communicate the effect of uncorrectedmisstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion. There were three uncorrected misstatements. 1) To record subscription-based information technology arrangements. 2) An unrecorded liability for waste water treatment services. 3) Prior year expenses recorded in the current year for utilities in the Sewer Fund.
For all three uncorrected mistatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Uncorrected misstatements or matters underlyingthose uncorrected misstatements could potentially cause future-period financial statementsto be materially misstated, even though the uncorrected misstatements are immaterial tothe financial statements currently under audit.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. There was one material journal entry, as listed in Footnote 14, regarding aprior period adjustment.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting,reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. There were none.Representations Requested from Management We have requested certain written representations from management, which are included in a letter dated February 12, 2025.Management’s Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditingand accounting matters. Management informed us that, and to our knowledge, there wereno consultations with other accountants regarding auditing and accounting matters.Other Significant Matters, Findings, or IssuesIn the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatoryconditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to ourretention as the City’s auditors.
Other Information Included in Annual Comprehensive Financial Report Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.
Our responsibility also includes communicating to you any information which we believe isa material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
Restriction of Use
This report is intended solely for the information and use of the City of Avalon, City Council, and management of the City and is not intended to be and should not be used by anyoneother than these specified parties.
IJi::
Irvine, California
February 12, 2025
DaVISFarr 18201 Von Korrnon Avenue I Suite 1 l0Oline CA 02612 C EFtTI flED PD B LIC ACCOIJ NTA NTS Mom: 940.1742020 I Fox: 9.15203.5520 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
City CouncilCity of Avalon
Avalon, California
Independent Auditor’s Report
We have audited, in accordance with the auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Avalon (the City), as of and for theyear ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated February 12, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing auditprocedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on theeffectiveness of the City’s internal control. Accordingly, we do not express an opinion on theeffectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not beprevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a materialweakness, yet important enough to merit attention by those charged with governance.Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be materialweaknesses. We identified a deficiency in internal control, described as item 2024-001, to bea significant deficiency. (2024-001) Material Audit Adjustment
As part of our audit procedures for the fiscal year ended June 30, 2024, we identified and recorded a material prior period adjustment to properly account for expenses incurred in the prior period. Auditing standards require that a control deficiency bereported for material adjustments identified during the audit.Recommendation We recognize that the timing of invoicing and the implementation of a new regulation contributed to this audit adjustment. We recommend ensuring that all materialadjustments are identified and recorded in the correct reporting period prior to thestart of an audit.
Manaciement’s Comments Regarding Corrective Actions PlannedManagement agrees with the finding and will ensure all material adjustments are identified and recorded in the correct reporting period prior to the start of an audit.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements arefree from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could havea direct and material effect on the financial statements. However, providing an opinion oncompliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.City’s Responses to FindingGovernment Auditing Standards requires the auditor to perform limited procedures on theCity’s responses to the finding identified in our audit. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectivenessof the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’sinternal control and compliance. Accordingly, this communication is not suitable for any otherpurpose. c
Irvine, California
February 12, 2025