CITY COUNCIL REGULAR MEETING AGENDA
May 10, 2023
Open Session: 5:00 pm, Hofert Hall, 39707 Big Bear Boulevard, Big Bear Lake, CA 92315 __________________________________________________________________________________________
COUNCILMEMBERS
MAYOR RANDALL PUTZ
MAYOR PRO TEM PERRI MELNICK
COUNCILMEMBER RICK HERRICK
COUNCILMEMBER BYNETTE MOTE
COUNCILMEMBER KENDI SEGOVIA
CITY STAFF
CITY MANAGER ERIK SUND
CITY ATTORNEY STEPHEN DEITSCH
CITY CLERK ERICA STEPHENSON
DEPUTY CITY CLERK REBECCA CANNON
Please Note: Agenda items may be moved at the discretion of the City Council.
The public is encouraged to submit written public communications about any item on this meeting agenda, or about any subject matter within the jurisdiction of the City, to the City Clerk in person, via mail or by email at [email protected]. If your comment is related to a specific Agenda item, please identify the Agenda item in the header of your letter or the subject line of your email. All written communications received by the City Clerk prior to the meeting will be distributed to the City Council prior to the start of the meeting, however, the public is encouraged to submit comments by 8:00 am on the day of the meeting to ensure adequate time for Council review and consideration.
OPEN SESSION
CALL TO ORDER
PLEDGE OF ALLEGIANCE
INVOCATION
Invocation will be led by Jim Lona, Commander of American Legion Post 584.
ROLL CALL
EVENT CALENDAR FOR THE PERFORMING ARTS CENTER
For tickets please contact the box office at (909) 866-4970 or visit www.citybigbearlake.com • The Voice Studio of Diane Sloan Kubeja presents the 2023 Summer Voice Recital: 20th Anniversary Celebration on June 3rd at 7 p.m. and on June 4th at 2 p.m.
CITY COUNCIL AGENDA
MAY 10, 2023 - Page 2
• The Steven G. Mihaylo, Big Bear High School Education Foundation presents 2023 Scholarship Presentation on June 10th at 4:30 p.m.
PRESENTATIONS
• Presentation of a Proclamation recognizing May as Building & Safety Month. • Presentation from the Mayor highlighting the addition of commemorative items that will be displayed for public viewing in Hofert Hall.
• Presentation of Certificates of Appreciation to the dedicated volunteers that served as Economic Development Advisory Committee members.
• Presentation from a Small Business Administration (SBA) representative providing information related to disaster assistance available as a result of the recent Federal Emergency Declarations. • Presentation from DKS Associates regarding preliminary results of the Community Visioning Survey.
PUBLIC COMMUNICATIONS
Public comment is permitted at this time only on consent calendar items and other matters not listed on the posted agenda that are within the subject matter jurisdiction of the City. Please note that State law prohibits the City Council from taking any action on items not listed on the agenda. There is a three-minute maximum time limit when addressing Council during this time period. The time limit is subject to adjustment at the discretion of the Presiding Officer.
Speakers are limited to their individual maximum time limit and other members of the public cannot cede their speaking time to another person. Public comment on items listed on the posted agenda (public hearing & discussion/ action items) will be taken at the time each item is called for discussion.
1. CONSENT CALENDAR
CITY COUNCIL
1.1 APPROVAL OF DEMANDS – CHECK ISSUE DATE 03/31/23 THROUGH 05/01/23 IN THE AMOUNT OF $1,319,542.84 AND THE MARCH 2023 TREASURER’S REPORT
1.2 APPROVAL OF MEETING MINUTES FROM THE MARCH 8, 2023, REGULAR MEETING OF
CITY COUNCIL
1.3 APPROVAL OF MEETING MINUTES FROM THE MARCH 17, 2023, SPECIAL MEETING OF
CITY COUNCIL
1.4 RESOLUTION APPROVING AN UPDATED MOUNTAIN AREA REGIONAL TRANSIT
AUTHORITY JOINT POWERS AGREEMENT
City Council will consider a formal resolution approving updates to the City’s current Mountain Area Regional Transit Authority Joint Powers Agreement (JPA) with San Bernardino County. The JPA was formed approximately 30 years ago to implement a public transit system that would serve Big Bear Lake and the surrounding unincorporated County mountain areas. The JPA revision has become necessary recently, due to the County’s redistricting process and it was also deemed prudent to update the older document.
Environmental Determination: Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and, therefore, no environmental review is required.
CITY COUNCIL AGENDA
MAY 10, 2023 - Page 3
1.5 RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO CAT TRACKING, INC. FOR THE 2023 CITYWIDE LINE STRIPING PROJECT AND FINDING THE PROJECT EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
City Council will consider a formal resolution awarding a construction contract to Cat Tracking, Inc. for the 2023 Citywide Line Striping Project. The project includes the painting of traffic lines, stripes, crosswalks, legends, and other markings during the 2023 construction season, including a complete, citywide effort in the Spring and a second retouch in the Fall. Funding is included in the adopted Fiscal Year 2022-23 Capital Improvement Program budget as well as the proposed 2023-24 budget for these efforts.
Environmental Determination: Under Section 15301.C of the CEQA Guidelines, these activities are categorically exempt, therefore, no environmental review is required.
1.6 RESOLUTION AUTHORIZING AN AGREEMENT WITH BEAR VALLEY PAVING FOR
CITYWIDE STREET SWEEPING SERVICES
City Council will consider a formal resolution authorizing an agreement with Bear Valley Paving for Citywide Street Sweeping Services. This project will provide street sweeping services across approximately 88 miles of City maintained streets to clean cinders and other debris from the streets, contributing to the overall aesthetics of the City as well as the City’s compliance with the National Pollutant Discharge Elimination System (NPDES). The efforts will be completed, citywide, by early summer.
Environmental Determination: Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and, therefore, no environmental review is required.
1.7 RESOLUTION AUTHORIZING A NOTICE OF COMPLETION FOR THE FISCAL YEAR 2022- 23 ANNUAL STREET REHABILITATION PROJECT
City Council will consider a formal resolution authorizing a Notice of Completion for the Fiscal Year 2022- 23 Annual Street Rehabilitation Project. This project performed street maintenance and rehabilitation on approximately 1.85 miles of City streets in 2022 with the work being performed by both a general contractor and City Public Works staff. Bear Valley Paving was awarded a construction contract for this project in June 2022 and the work was substantially completed during the 2022 construction season. The final construction activities are completed and the project is ready for acceptance and the issuance of a notice of completion.
Environmental Determination: Under Section 15301.C of the CEQA Guidelines, these repairs are categorically exempt and, therefore, no environmental review is required.
1.8 RESOLUTION ADOPTING AN SB 1 FUNDED PROJECT LIST FOR FISCAL YEAR 2023-24 City Council will consider a formal resolution adopting an SB 1 funded project list for Fiscal Year 2023-24.
SB 1: The Road Repair and Accountability Act of 2017 provided significant funding for statewide investment in roads, highways, and transportation. The Road Maintenance and Rehabilitation Account (RMRA) element of this legislation provides annual funding to local agencies for essential road maintenance and rehabilitation efforts. The City’s anticipated RMRA allocation for Fiscal Year 2023-24 is $124,763 and these funds are
CITY COUNCIL AGENDA
MAY 10, 2023 - Page 4
proposed to be programmed to the Annual Street Rehabilitation Project. The adoption of this list, which includes the proposed FY 2023-24 street projects, is a condition associated with the receipt of these funds.
Environmental Determination: Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and, therefore, no environmental review is required.
1.9 RESOLUTION RATIFYING BIG BEAR FIRE AUTHORITY ORDINANCE NO. BBFA 2023-001 ADOPTING THE 2022 EDITION OF THE CALIFORNIA FIRE CODE AND THE 2022 EDITION
OF THE CALIFORNIA RESIDENTIAL CODE, ALONG WITH CERTAIN CHANGES,
MODIFICATIONS, AMENDMENTS, ADDITIONS, DELETIONS AND EXCEPTIONS AS
ADOPTED BY THE BIG BEAR FIRE AUTHORITY
City Council will consider a formal resolution ratifying the Big Bear Fire Authority’s Ordinance No.
BBFA2023-001 Adopting the 2022 Edition of the California Fire Code and the 2022 Edition of the California Residential Code along with certain changes, modifications, amendments, additions, deletions and exceptions as adopted by the Big Bear Fire Authority.
Environmental Determination: Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and, therefore, no environmental review is required.
ITEMS REMOVED FROM THE CONSENT CALENDAR
2. DISCUSSION/ACTION ITEMS
2.1 2023 MISSION STATEMENT, CORE VALUES AND STRATEGIC PRIORITIES At the March 17, 2023 Special City Council Meeting, the City Council received a presentation from Jacob Green & Associates and engaged in a discussion regarding the City Council’s collective vision and strategic priorities for Big Bear Lake. During that meeting the City Council worked collaboratively to draft a list of their strategic priorities for the City organization and the community. The final draft of those strategic priorities including a proposed mission statement and core values are being presented for further City Council review, discussion and potential adoption.
Environmental Determination: Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and, therefore, no environmental review is required.
2.2 ORDINANCE OF THE CITY OF BIG BEAR LAKE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, APPROVING ADJUSTMENTS TO THE DWP’S RATES, CHARGES AND
FEES FOR WATER SERVICE
At the February 6, 2023 Special Joint City Council and Department of Water & Power (DWP) Board of Commissioners Workshop Meeting, the DWP provided a presentation related to a proposed rate plan for July 2023 thru June 30, 2028. The City Council and DWP Board engaged in a discussion and provided feedback to the DWP staff related to the proposed water rate adjustments. On April 11, 2023, the DWP Board conducted a Public Hearing in accordance with Proposition 218, regarding the proposed adjustments to the water rates, charges and fees, and approved Resolution No. DWP 2023-04 adopting the proposed adjustments. Pursuant to the City’s Charter and Municipal Code, the DWP’s adopted resolution becomes effective only upon approval of an ordinance adopted by the City Council. Therefore, City Council is now
CITY COUNCIL AGENDA
MAY 10, 2023 - Page 5
being requested to consider reading the title, waiving further reading and introducing an ordinance approving adjustments to the DWP’s rates, charges and fees for water service; and finding the action exempt from the California Environmental Quality Act.
Environmental Determination: Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and, therefore, no environmental review is required.
2.3 AUTHORIZING LETTERS OF SUPPORT AND/OR OPPOSITION FOR LEGISLATIVE ITEMS
City Council will consider taking a position of opposition for legislative items including: Initiative No. 21- 0042A1 entitled The Taxpayer Protection and Government Accountability Act, SB 423 (Weiner) that streamlines housing approvals in multifamily housing developments, and Bear Valley Electric Service, Inc. request to increase rates in its 2023 General Rate Case. City Council will also consider taking a position of support for Fentanyl and Substance Use related legislation and the Western Joshua Tree Conservation Act Budget Trailer Bill if amended.
Environmental Determination: Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and, therefore, no environmental review is required.
3. COMMENTS, ANNOUNCEMENTS & ADDITIONAL CITY BUSINESS
3.1 CITY CLERK, CITY ATTORNEY, CITY MANAGER COMMENTS
• Application filing period open for DWP Board of Commissioners and Planning Commission • Update regarding solid waste service changes (transition to cart service)
3.2 COUNCILMEMBER BOARD/COMMITTEE REPORTS & COMMENTS
ADJOURNMENT
TENTATIVE ITEMS TO BE CONSIDERED AT A FUTURE CITY COUNCIL MEETING MAY 12, 2023 (9:00am) – SPECIAL MEETING TO REVIEW BBARWA’S PROPOSED RATES MAY 24, 2023 (9:00am) – FY 2023-24 BUDGET WORKSHOP
JUNE 14, 2023 (9:00am) - PLANNING COMMISSION & DWP BOARDMEMBER INTERVIEWS JUNE 14, 2023 – FY 2023-24 BUDGET ADOPTION
I hereby certify under penalty of perjury, under the laws of the State of California, that the foregoing agenda was posted in accordance with the applicable legal requirements. Dated this 4th day of May 2023.
Erica Stephenson, City Clerk
CITY COUNCIL AGENDA
MAY 10, 2023 - Page 6
The City of Big Bear Lake wishes to make all of its public meetings accessible to the public. If you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (909) 866-5831. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Check# Vendor/Employee Date Amount
85489 TASC Client Invoices 04/05/23 88.35
85492 Bear Valley Electric 04/06/23 9,760.00 85493 Big Bear Lake Urgent Care Inc 04/06/23 250.00
85494 Butchers Blocks & Building Materials 04/06/23 331.89 85495 Dapeer Rosenblit & Litvak LLP 04/06/23 12,583.24 85496 Deckard Technologies, Inc. 04/06/23 2,550.00 85497 Department of Justice 04/06/23 32.00
85498 City of Big Bear Lake Dept of Water & Power 04/06/23 299.85 85499 Fisher Integrated, Inc. 04/06/23 1,200.00 85500 Genuine Auto Parts 04/06/23 145.51
85502 The Grizzly 04/06/23 2,366.25
85503 Intelesys One, Inc. 04/06/23 160.00
85504 Lance Soll & Lunghard 04/06/23 2,240.00 85505 Lumber City Corp. 04/06/23 673.57
85506 Mission Linen Supply Inc. 04/06/23 766.61
85507 Moslow Wood Products 04/06/23 561.36
85508 Nick's Auto Care, Inc. 04/06/23 438.69
85509 Nielsen Merksamer Parrinello Gross & Leoni, LLP 04/06/23 2,046.00 85510 Occupational Health Centers of California 04/06/23 180.00 85511 Robertson's Ready Mix 04/06/23 525.01
85512 Robinhood Inn Inc. 04/06/23 985.68
85513 Eric Seaman 04/06/23 1,500.00
85514 United Rentals (North America), Inc 04/06/23 31.78 85515 Willdan Engineering Inc 04/06/23 3,556.00 85516 San Bernardino County Clerk of the Board of Supervisors 04/14/23 450.00 85517 San Bernardino County Fire Department 04/14/23 3,977.50 85518 San Bernardino County Dept of Public Works 04/14/23 300.36 85519 San Bernardino County Sheriff's Dept 04/14/23 442,169.00 85520 San Bernardino County Vehicle Svcs Dept 04/14/23 43,098.30 85521 City of Big Bear Lake Dept of Water & Power 04/14/23 1,595.03 85522 A Performance Towing Inc 04/14/23 7,500.00 85523 Autozone Investment Corporation 04/14/23 3.65
85524 Big Bear Disposal Inc 04/14/23 223,530.34
85525 BlackHole Technologies Inc 04/14/23 1,949.45 85526 Carl Botterud 04/14/23 24,629.00
85527 Bear Valley Electric 04/14/23 19,202.27 85528 Bear Valley Paving, Inc. 04/14/23 4,955.00 85529 Charter Communications Holdings, LLC 04/14/23 2,388.18 85530 Cintas Corporation 04/14/23 352.34
85531 Crafco Inc. 04/14/23 3,232.50
85532 Frontier Communications 04/14/23 60.24
85533 Grainger Inc. 04/14/23 2,553.71
85534 The Grizzly 04/14/23 1,518.00
85535 Hinderliter de Lamas & Assoc Inc. 04/14/23 1,359.72 85536 Intelesys One, Inc. 04/14/23 10,488.88 85539 Ludecke's Electrical Service, Inc. 04/14/23 8,101.98 City of Big Bear Lake
Checks Issued 03/31/23 ‐ 05/01/23
Item 1.1
Check# Vendor/Employee Date Amount
City of Big Bear Lake
Checks Issued 03/31/23 ‐ 05/01/23
85540 Merrell Johnson Engineering Inc 04/14/23 13,007.50 85541 Mile High Equipment, Inc. 04/14/23 113,407.25
85542 Mission Linen Supply Inc. 04/14/23 764.85
85543 Municipal Maintenance Equipment 04/14/23 1,663.95 85544 Quadient Leasing USA, Inc 04/14/23 178.11
85545 Romans Construction Corp. 04/14/23 42,928.00
85546 T‐Rex Demolition Inc 04/14/23 1,595.00
85547 Underground Service Alert Inc. 04/14/23 84.97
85548 Espyr 04/21/23 204.60
85557 All Protection Alarm 04/21/23 919.34
85558 Big Bear Chamber of Commerce 04/21/23 169.65
85559 Big Bear Disposal Inc 04/21/23 166.36
85560 Big Bear Paint Center 04/21/23 225.70
85561 Burtronics Business Systems 04/21/23 52.31
85562 Butchers Blocks & Building Materials 04/21/23 302.55 85563 Bear Valley Electric 04/21/23 18,998.76
85565 Charter Communications Holdings, LLC 04/21/23 203.49 85566 Steve Hines LLC 04/21/23 1,846.25
85567 Crafco Inc. 04/21/23 1,616.26
85568 Lumber City Corp. 04/21/23 229.07
85570 FedEx 04/21/23 76.34
85571 Extra Space Management Inc 04/21/23 976.00
85572 Frontier Communications 04/21/23 2,792.89
85573 Geiger Supply, Inc. 04/21/23 64.53
85575 Adam Joens 04/21/23 1,200.00
85576 Mission Linen Supply Inc. 04/21/23 1,507.83
85577 Michael Marcotte 04/21/23 530.00
85578 Motive Energy 04/21/23 405.50
85579 Mountain Trophy & Pro Shop 04/21/23 25.86
85580 Mountain Water Co 04/21/23 184.00
85581 Orkin Pest Control 04/21/23 94.99
85582 Quill Corporation 04/21/23 187.42
85583 Rochester Midland Corporation 04/21/23 611.64
85587 Vulcan Materials Company Inc. 04/21/23 2,475.02
85589 Department of Justice 04/28/23 32.00
85590 San Bernardino County 04/28/23 4.00
85591 San Bernardino County Fire Protection District 04/28/23 4,095.00 85594 Autozone Investment Corporation 04/28/23 9.04
85595 Best Best & Krieger LLP 04/28/23 18,970.77
85596 Big Bear Paint Center 04/28/23 143.15
85597 Butchers Blocks & Building Materials 04/28/23 338.53 85598 Bear Valley Electric 04/28/23 876.74
85599 Bear Valley Paving, Inc. 04/28/23 4,975.00
85600 Bear Valley Printing Inc 04/28/23 406.54
85601 Caritas Corporation 04/28/23 14,197.84
85602 Charter Communications Holdings, LLC 04/28/23 913.85 Check# Vendor/Employee Date Amount
City of Big Bear Lake
Checks Issued 03/31/23 ‐ 05/01/23
85603 Cintas Corporation 04/28/23 1,281.05
85604 DKS Associates 04/28/23 4,438.75
85605 Docu‐Trust 04/28/23 50.00
85606 Geiger Supply, Inc. 04/28/23 26.18
85607 Grainger Inc. 04/28/23 759.37
85608 HdL Coren & Cone 04/28/23 4,502.53
85609 Jacob Green & Associates Inc 04/28/23 13,500.00
85610 King's Fire Protection, Inc. 04/28/23 90.04
85611 Marlin Business Bank 04/28/23 1,616.02
85612 Mission Linen Supply Inc. 04/28/23 1,961.52
85613 Randy Spitz 04/28/23 82.00
85614 Genuine Auto Parts 04/28/23 79.06
85615 Nielsen Merksamer Parrinello Gross & Leoni, LLP 04/28/23 2,565.07 85616 Orkin Pest Control 04/28/23 196.99
85617 Peckham & McKenney Inc. 04/28/23 8,300.00
85618 Roger Wood Transportation LLC 04/28/23 7,650.00
85619 Romans Construction Corp. 04/28/23 15,798.00
85620 Cynthia Stafford 04/28/23 13,133.75
85621 Southwest Gas Corporation 04/28/23 22,762.88
85622 Triple Crown Products, Inc. 04/28/23 923.57
85623 United Rentals (North America), Inc 04/28/23 28,937.58 85624 USA Bluebook 04/28/23 1,882.14
85625 Valero Marketing & Supply Co 04/28/23 962.48
85626 Verizon Wireless 04/28/23 1,814.07
85627 Volvo Construction Equipment Inc. 04/28/23 51,558.40 85628 Vulcan Materials Company Inc. 04/28/23 4,365.05
85629 Waxie Sanitary Supply Inc. 04/28/23 5,669.36
85630 Willdan Engineering Inc 04/28/23 19,935.00
ACH Phase II Systems 04/21/23 2,138.64
ACH AccuSource, Inc. 04/28/23 122.65
ACH Gary Payne 04/28/23 1,095.00
1,319,542.84
Check# Vendor/Employee Transaction Amount
City Council 4110
85622 Triple Crown Products, Inc. City Logo Apparel 04/28/23 923.57 City Council Total 923.57
City Clerk 4130
85503 Intelesys One, Inc. Records Request Support 04/06/23 160.00 85507 Moslow Wood Products Proclamation Frames 04/06/23 561.36 City Clerk Total 721.36
Finance 4140
85504 Lance Soll
& Lunghard Professional Services 04/06/23 2,240.00
85535 Hinderliter de Lamas
& Assoc Inc. Professional Services 04/14/23 1,359.72
85582 Quill Corporation Office Supplies 04/21/23 40.93
85608 HdL Coren
& Cone Professional Services 04/28/23 4,502.53
Finance Services Total 8,143.18
Human Resources 4150
85489 TASC Client Invoices Administrative Fees 04/05/23 88.35 85493 Big Bear Lake Urgent Care Inc Recruitment Expense 04/06/23 250.00 85497 Department of Justice Fingerprint Apps 04/06/23 32.0085502 The Grizzly Recruitment Expense 04/06/23 180.0085510 Occupational Health Centers of California Recruitment Expense 04/06/23 180.0085548 Espyr EAP Services 04/21/23 204.6085589 Department of Justice Fingerprint Apps 04/28/23 32.0085609 Jacob Green & Associates Inc Recruitment Expense 04/28/23 13,500.00 85617 Peckham
& McKenney Inc. Recruitment Expense 04/28/23 8,300.00
85620 Cynthia Stafford Professional Services 04/28/23 13,133.75ACH AccuSource, Inc. Recruitment Expense 04/28/23 122.65ACH Phase II Systems PARS Administrative Fees 04/21/23 2,138.64 Human Resources Total 38,161.99
City Attorney 4170
85495 Dapeer Rosenblit
& Litvak LLP Professional Legal Services 04/06/23 12,583.24 85502 The Grizzly Legal Notices 04/06/23 2,186.2585509 Nielsen Merksamer Parrinello Gross & Leoni, LLP Professional Legal Services 04/06/23 2,046.00 85526 Carl Botterud Professional Legal Services 04/14/23 24,629.0085534 The Grizzly Legal Notices 04/14/23 1,518.00 City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
85595 Best Best
& Krieger LLP Professional Legal Services 04/28/23 18,970.77 85615 Nielsen Merksamer Parrinello Gross
& Leoni, LLP Professional Legal Services 04/28/23 2,565.07 City Attorney Total 64,498.33
Traffic Safety 4230
85527 Bear Valley Electric Electricity Usage ‐ Credit 04/21/23 (15.36) 85563 Bear Valley Electric Electricity Usage 04/21/23 379.91 85598 Bear Valley Electric Electricity Usage 04/28/23 291.64 Traffic Safety Total 656.19
Law Enforcement 4250
85519 San Bernardino County Sheriff's Dept Monthly Sheriff Contract 04/14/23 442,169.00 Law Enforcement Total 442,169.00
Animal Regulation 4260
85505 Lumber City Corp. Materials/Supplies 04/06/23 62.0585562 Butchers Blocks & Building Materials Materials/Supplies 04/21/23 64.64
85597 Butchers Blocks
& Building Materials Materials/Supplies 04/28/23 51.27
Animal Regulation Total 177.96
Engineering 4310
85515 Willdan Engineering Inc Professional Services 04/06/23 252.00 85516 San Bernardino County Clerk of the Board of Supervisors Recording Fees 04/14/23 450.00 85540 Merrell Johnson Engineering Inc Professional Services 04/14/23 2,672.00 85570 FedEx Shipping Charges 04/21/23 76.34
Engineering Total 3,450.34
Street Maintenance 4320
85505 Lumber City Corp. Materials/Supplies 04/06/23 175.1785506 Mission Linen Supply Inc. Laundry Service 04/06/23 306.64 85508 Nick's Auto Care, Inc. Fuel Charges 04/06/23 438.69 85511 Robertson's Ready Mix Materials/Supplies 04/06/23 525.0185514 United Rentals (North America), Inc Snow Removal Equipment Rental 04/06/23 31.78 85518 San Bernardino County Dept of Public Works Cost Share/Chip Seal & Overlay 04/14/23 300.36
85520 San Bernardino County Vehicle Svcs Dept Fuel Charges 04/14/23 37,982.01 Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
85522 A Performance Towing Inc Towing Service 04/14/23 7,500.00 85525 BlackHole Technologies Inc GPS Monthly Service 04/14/23 1,949.45 85528 Bear Valley Paving, Inc. On‐Call Snow Removal Services 04/14/23 3,960.00 85531 Crafco Inc. Materials/Supplies 04/14/23 3,232.5085533 Grainger Inc. Materials/Supplies 04/14/23 568.2285541 Mile High Equipment, Inc. On‐Call Snow Removal Services 04/14/23 113,407.2585542 Mission Linen Supply Inc. Laundry Service 04/14/23 305.94 85543 Municipal Maintenance Equipment Snow Removal Equipment Repair 04/14/23 1,663.95 85545 Romans Construction Corp. On‐Call Snow Removal Services 04/14/23 42,928.0085559 Big Bear Disposal Inc Additional Dumpster Rental 04/21/23 166.3685565 Charter Communications Holdings, LLC Cable Service 04/21/23 83.5185567 Crafco Inc. Materials/Supplies 04/21/23 1,616.2685568 Lumber City Corp. Materials/Supplies 04/21/23 33.8885571 Extra Space Management Inc Storage Rental Spaces 04/21/23 976.0085576 Mission Linen Supply Inc. Laundry Service 04/21/23 603.13 85583 Rochester Midland Corporation Janitorial Supplies 04/21/23 152.91 85587 Vulcan Materials Company Inc. Materials/Supplies 04/21/23 2,475.02 85594 Autozone Investment Corporation Materials/Supplies 04/28/23 9.0485603 Cintas Corporation First Aid Supplies 04/28/23 425.1185610 King's Fire Protection, Inc. Fire Extinguisher Service 04/28/23 90.0485612 Mission Linen Supply Inc. Laundry Service 04/28/23 1,514.35 85618 Roger Wood Transportation LLC On‐Call Snow Removal Services 04/28/23 7,650.00 85619 Romans Construction Corp. On‐Call Snow Removal Services 04/28/23 15,798.0085623 United Rentals (North America), Inc Snow Removal Equipment Rental 04/28/23 28,937.5885625 Valero Marketing & Supply Co Fuel Charges 04/28/23 962.48
85627 Volvo Construction Equipment Inc. Snow Removal Equipment Rental 04/28/23 51,558.40 85628 Vulcan Materials Company Inc. Materials/Supplies 04/28/23 2,957.2785629 Waxie Sanitary Supply Inc. Janitorial Supplies 04/28/23 1,417.33 PW: Street Maintenance Total 332,701.64
Vehicle Maintenance 4325
85500 Genuine Auto Parts Vehicle Repair Expense 04/06/23 38.33 85506 Mission Linen Supply Inc. Laundry Service 04/06/23 38.33 85521 City of Big Bear Lake Dept of Water
& Power Water Usage 04/14/23 119.34
85542 Mission Linen Supply Inc. Laundry Service 04/14/23 38.24 85563 Bear Valley Electric Electricity Usage 04/21/23 28.32 85576 Mission Linen Supply Inc. Laundry Service 04/21/23 75.39 85612 Mission Linen Supply Inc. Laundry Service 04/28/23 37.25 Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
85621 Southwest Gas Corporation Natural Gas Usage 04/28/23 3,580.09 PW: Vehicle Maintenance Total 3,955.29
Street Lighting 4330
85492 Bear Valley Electric Electricity Usage 04/06/23 6,268.86 85563 Bear Valley Electric Electricity Usage 04/21/23 1,100.60 85598 Bear Valley Electric Electricity Usage 04/28/23 49.32 PW: Street Lighting Total 7,418.78
Parking Lots / Chamber Building 4335
85492 Bear Valley Electric Electricity Usage 04/06/23 429.80 85494 Butchers Blocks
& Building Materials Materials/Supplies 04/06/23 24.83
85521 City of Big Bear Lake Dept of Water
& Power Water Usage 04/14/23 409.61
85527 Bear Valley Electric Electricity Usage 04/14/23 4,113.35 85529 Charter Communications Holdings, LLC Security Camera Internet Service 04/14/23 239.96 85533 Grainger Inc. Materials/Supplies 04/14/23 84.9285557 All Protection Alarm Alarm Monitoring 04/21/23 119.8085558 Big Bear Chamber of Commerce Natural Gas Usage 04/21/23 169.6585562 Butchers Blocks & Building Materials Materials/Supplies 04/21/23 79.43
85563 Bear Valley Electric Electricity Usage 04/21/23 1,665.21 85581 Orkin Pest Control Pest Control 04/21/23 94.99
85583 Rochester Midland Corporation Janitorial Supplies 04/21/23 152.91 85598 Bear Valley Electric Electricity Usage 04/28/23 135.93 85606 Geiger Supply, Inc. Materials/Supplies 04/28/23 26.18 85629 Waxie Sanitary Supply Inc. Janitorial Supplies 04/28/23 1,417.34 PW: Parking Lots/Chamber Total 9,163.91
Planning 4410
85515 Willdan Engineering Inc Professional Services 04/06/23 3,304.00 85590 San Bernardino County Monthly Assessor Parcel Map Update 04/28/23 4.00 85604 DKS Associates Professional Services 04/28/23 4,438.75 85630 Willdan Engineering Inc Professional Services 04/28/23 5,600.00 Planning Total 13,346.75
Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
Tourism
& Municipal Code Compliance 4415
85496 Deckard Technologies, Inc. Annual Software Subscription 04/06/23 2,550.00 85520 San Bernardino County Vehicle Svcs Dept Fuel Charges 04/14/23 986.33 Tourism
& Municipal Code Compliance Total 3,536.33
Building
& Safety 4430
85520 San Bernardino County Vehicle Svcs Dept Fuel Charges 04/14/23 45.45 85630 Willdan Engineering Inc Professional Services 04/28/23 14,335.00 Building
& Safety Total 14,380.45
City Parks
& Trails 4625
85494 Butchers Blocks
& Building Materials Materials/Supplies 04/06/23 38.36
85498 City of Big Bear Lake Dept of Water
& Power Water Usage 04/06/23 299.85
85521 City of Big Bear Lake Dept of Water
& Power Water Usage 04/14/23 412.81
85527 Bear Valley Electric Electricity Usage 04/14/23 802.11 85529 Charter Communications Holdings, LLC Security Camera Internet Service 04/14/23 119.98 85539 Ludecke's Electrical Service, Inc. On‐Call Electrical Service 04/14/23 4,301.9885562 Butchers Blocks & Building Materials Materials/Supplies 04/21/23 82.45
85563 Bear Valley Electric Electricity Usage 04/21/23 3,210.27 85583 Rochester Midland Corporation Janitorial Supplies 04/21/23 152.91 85597 Butchers Blocks
& Building Materials Materials/Supplies 04/28/23 208.53 85598 Bear Valley Electric Electricity Usage 04/28/23 399.85 85600 Bear Valley Printing Inc Flag Banners 04/28/23 406.54 85602 Charter Communications Holdings, LLC Security Camera Internet Service 04/28/23 289.9685629 Waxie Sanitary Supply Inc. Janitorial Supplies 04/28/23 1,417.34 City Parks
& Trails Total 12,142.94
General Government 4800
85512 Robinhood Inn Inc. Emergency Lodging 04/06/23 985.68 85529 Charter Communications Holdings, LLC Cable Service 04/14/23 2,028.2485532 Frontier Communications Telephone Service 04/14/23 60.2485544 Quadient Leasing USA, Inc Mailing Machine Toner 04/14/23 178.11 85572 Frontier Communications Telephone Service 04/21/23 2,340.97 85579 Mountain Trophy
& Pro Shop Name Plates 04/21/23 25.86
85580 Mountain Water Co Water Dispenser Rental
& Water 04/21/23 184.00
85582 Quill Corporation Office Supplies 04/21/23 146.49 85602 Charter Communications Holdings, LLC Internet Service 04/28/23 623.89 85603 Cintas Corporation First Aid Supplies 04/28/23 430.84 Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
85605 Docu‐Trust Document Storage 04/28/23 50.00
85611 Marlin Business Bank Copier Lease 04/28/23 1,616.02 85613 Randy Spitz Meeting Supplies 04/28/23 82.0085626 Verizon Wireless Cell Phone Service 04/28/23 1,814.07 General Government Total 10,566.41
Information Technology 4810
85499 Fisher Integrated, Inc. Video Streaming 04/06/23 1,200.00 85536 Intelesys One, Inc. IT Services/License Fees 04/14/23 10,488.88 85566 Steve Hines LLC Annual Laserfiche Maintenance
& Support 04/21/23 1,846.25
Technology Services Total 13,535.13
Civic Center 4820
85494 Butchers Blocks
& Building Materials Materials/Supplies 04/06/23 72.54
85505 Lumber City Corp. Materials/Supplies 04/06/23 285.1685506 Mission Linen Supply Inc. Laundry Service 04/06/23 53.67 85513 Eric Seaman On‐Call Snow Removal Service 04/06/23 1,500.00 85520 San Bernardino County Vehicle Svcs Dept Fuel Charges 04/14/23 1,068.02 85521 City of Big Bear Lake Dept of Water
& Power Water Usage 04/14/23 353.42
85527 Bear Valley Electric Electricity Usage 04/14/23 7,007.04 85530 Cintas Corporation AED Lease 04/14/23 352.34
85542 Mission Linen Supply Inc. Laundry Service 04/14/23 53.54 85557 All Protection Alarm Alarm Monitoring 04/21/23 673.85 85560 Big Bear Paint Center Materials/Supplies 04/21/23 225.70 85561 Burtronics Business Systems Printing Fees 04/21/23 52.31 85565 Charter Communications Holdings, LLC Security Camera Internet Service 04/21/23 119.9885568 Lumber City Corp. Materials/Supplies 04/21/23 195.1985573 Geiger Supply, Inc. Materials/Supplies 04/21/23 64.53 85576 Mission Linen Supply Inc. Laundry Service 04/21/23 105.55 85577 Michael Marcotte Maintenance
& Repairs 04/21/23 530.00
85578 Motive Energy Maintenance
& Repairs 04/21/23 405.50
85583 Rochester Midland Corporation Janitorial Supplies 04/21/23 152.91 85596 Big Bear Paint Center Materials/Supplies 04/28/23 52.19 85612 Mission Linen Supply Inc. Laundry Service 04/28/23 52.17 85616 Orkin Pest Control Pest Control 04/28/23 196.99
Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
85621 Southwest Gas Corporation Natural Gas Usage 04/28/23 12,371.07 85629 Waxie Sanitary Supply Inc. Janitorial Supplies 04/28/23 1,417.35 Civic Center Total 27,361.02
PAC Operations
& Maintenance 4821
85527 Bear Valley Electric Electricity Usage 04/14/23 2,335.68 85557 All Protection Alarm Alarm Monitoring 04/21/23 125.69 85621 Southwest Gas Corporation Natural Gas Usage 04/28/23 2,856.08 ACH Gary Payne Theatre Maintenance
& Support 04/28/23 1,095.00
PAC Operations
& Maintenance Total 6,412.45
Sanitation 250
85492 Bear Valley Electric Electricity Usage 04/06/23 2,550.47 85494 Butchers Blocks
& Building Materials Materials/Supplies 04/06/23 23.80
85500 Genuine Auto Parts Vehicle Repair Parts 04/06/23 107.18 85505 Lumber City Corp. Materials/Supplies 04/06/23 63.9385506 Mission Linen Supply Inc. Laundry Service 04/06/23 306.64 85520 San Bernardino County Vehicle Svcs Dept Fuel Charges 04/14/23 3,016.49 85521 City of Big Bear Lake Dept of Water
& Power Water Usage 04/14/23 48.75
85523 Autozone Investment Corporation Vehicle Repair Parts 04/14/23 3.65 85527 Bear Valley Electric Electricity Usage 04/14/23 4,151.96 85528 Bear Valley Paving, Inc. Sewer Manhole Repair 04/14/23 995.00 85533 Grainger Inc. Materials/Supplies 04/14/23 1,900.57 85540 Merrell Johnson Engineering Inc Professional Services 04/14/23 829.00 85542 Mission Linen Supply Inc. Laundry Service 04/14/23 305.94 85547 Underground Service Alert Inc. Dig Alert Program Charges 04/14/23 84.97 85562 Butchers Blocks
& Building Materials Materials/Supplies 04/21/23 58.81
85563 Bear Valley Electric Electricity Usage 04/21/23 12,061.72 85572 Frontier Communications Telephone Service 04/21/23 451.92 85576 Mission Linen Supply Inc. Laundry Service 04/21/23 603.13 85599 Bear Valley Paving, Inc. Sewer Manhole Repair 04/28/23 4,975.00 85603 Cintas Corporation First Aid Supplies 04/28/23 425.10 85607 Grainger Inc. Materials/Supplies 04/28/23 326.9485612 Mission Linen Supply Inc. Laundry Service 04/28/23 298.12 85614 Genuine Auto Parts Vehicle Repair Parts 04/28/23 79.06 85621 Southwest Gas Corporation Natural Gas Usage 04/28/23 3,580.08 85624 USA Bluebook Materials/Supplies 04/28/23 1,882.14 Sanitation Total 39,130.37
Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
Property Lease General Operations 256
85546 T‐Rex Demolition Inc Demolition of 40986 Big Bear Blvd 04/14/23 1,595.00 85575 Adam Joens Water Line Repair 04/21/23 1,200.00
85601 Caritas Corporation August Tenant Payment ‐ Leisure Bear 04/28/23 14,197.84 Property Lease General Operations Total 16,992.84
Village Streetscape Maintenance 291
85492 Bear Valley Electric Electricity Usage 04/06/23 510.87 85494 Butchers Blocks
& Building Materials Materials/Supplies 04/06/23 172.36 85505 Lumber City Corp. Materials/Supplies 04/06/23 87.2685521 City of Big Bear Lake Dept of Water & Power Water Usage 04/14/23 251.10
85524 Big Bear Disposal Inc Village Litter Containers 04/14/23 1,931.30 85527 Bear Valley Electric Electricity Usage 04/14/23 807.49 85562 Butchers Blocks
& Building Materials Materials/Supplies 04/21/23 17.22
85563 Bear Valley Electric Electricity Usage 04/21/23 552.73 85597 Butchers Blocks
& Building Materials Materials/Supplies 04/28/23 27.46
85607 Grainger Inc. Materials/Supplies 04/28/23 432.4385621 Southwest Gas Corporation Natural Gas Usage 04/28/23 375.56 Village Streetscape Maintenance Total 5,165.78
Capital Projects 321
85539 Ludecke's Electrical Service, Inc. Electric Vehicle Charging Stations 04/14/23 3,800.00 85540 Merrell Johnson Engineering Inc Rathbun Creek Trail Project 04/14/23 8,677.50 85596 Big Bear Paint Center Animal Shelter Improvements 04/28/23 90.96 85597 Butchers Blocks
& Building Materials Animal Shelter Improvements 04/28/23 51.27 Capital Projects Total 12,619.73
Street Improvement Projects 350
85628 Vulcan Materials Company Inc. Moonridge Realignment & Roundabouts Construction Project 04/28/23 1,407.78
Capital Projects/ Street Improvements Total 1,407.78
Refuse 550
85506 Mission Linen Supply Inc. Laundry Service 04/06/23 61.33 85517 San Bernardino County Fire Department Household Hazardous Waste Removal 04/14/23 3,977.50 85524 Big Bear Disposal Inc Residential Curb/Bin Service 04/14/23 221,599.0485540 Merrell Johnson Engineering Inc Professional Services 04/14/23 829.00 85542 Mission Linen Supply Inc. Laundry Service 04/14/23 61.19 Check# Vendor/Employee Transaction Amount
City of Big Bear Lake
Expenditure By Department
Checks Issued 03/31/2023 ‐ 05/01/2023
85576 Mission Linen Supply Inc. Laundry Service 04/21/23 120.63 85591 San Bernardino County Fire Protection District Household Hazardous Waste Removal 04/28/23 4,095.00 85612 Mission Linen Supply Inc. Laundry Service 04/28/23 59.63 Refuse Total 230,803.32
1,319,542.84
DISTRIBUTION OF TREASURY CASH Rate Amount % of Total
Demand Account - Union Bank $ 13.37% 3,924,907
Imprest Cash - Union Bank Payroll $ 0.02% 5,000
Imprest Cash $ 0.01% 1,525
Dental Self Insured Checking $ 0.56% 165,596
Local Agency Investment Fund (LAIF) 2.831% 25,258,559 $ 86.04% Total Cash In Treasury: 29,355,587 $ 100.00%
INVESTMENT ACTIVITY Days Deposits Withdrawals
LAIF Average Life (Days) of Portfolio 287
LAIF Transactions $0 $0
Interest Received for Fiscal Year 2022-23 $282,708
DISTRIBUTION OF CASH BY FUND March 2023 February 2023 Change General $ 22,607,804 22,307,184 $ (300,620) $
Sanitation $ 5,900,259 4,499,647 $ (1,400,612) $
Capital Improvement $ (1,505,177) (1,279,497) $ 225,680 $ Refuse $ 1,180,229 1,129,577 $ (50,652) $
Trust $ 2,369,334 1,940,723 $ (428,611) $
Successor Agency $ 259,166 259,166 $ - $
AB 3229 Supp Law Enforce $ 502,918 498,787 $ (4,131) $
Total Cash in Treasury: 29,355,587 $ 31,314,533 $ (1,958,946) $ CASH WITH FISCAL AGENT - RESERVE FUNDS Cost Basis Market Value Current Yield 2005 Revenue Refunding Bonds
Big Bear Lake Reserve Fund $ 568,913 568,913 $ 4.69%
Moonridge Reserve Fund $ 80,764 80,764 $ 4.69%
1999 IA Tax Allocation Bonds $ 289,289 289,289 $ 4.69%
- The aforementioned investments conform to the City's investment policy. (Res. 2022-64) - Cash is sufficient to meet needs of the next 6 months. - Interest earned on invested cash is accrued on a quarterly basis.
Pursuant to California Government Code 53647 all local government agencies are required to report the current market value of investments under management by an outside party. The reserve funds for the aforementioned bond issues are held and managed by the City's Trustee, Union Bank.
CITY OF BIG BEAR LAKE
TREASURER'S REPORT
March 31, 2023
-
Regular Meeting Minutes – March 8, 2023
A Regular Meeting of the City Council of the City of Big Bear Lake was called to order by Mayor Putz at 5:05 p.m., Wednesday, March 8, 2023, at the Civic Center, 39707 Big Bear Boulevard, Big Bear Lake, California.
OPEN SESSION
Flag Salute: Flag Salute led by Councilmember Mote
Councilmembers Present: Mayor Randall Putz
Mayor Pro Tem Perri Melnick
Councilmember Rick Herrick
Councilmember Bynette Mote
Councilmember Kendi Segovia
Others Present: Erik Sund, City Manager
Stephen P. Deitsch, City Attorney
Erica Stephenson, City Clerk
Rebecca Cannon, Deputy City Clerk
PUBLIC COMMUNICATIONS
Sandy Steers, Big Bear resident, requested that the City Council sign a Letter of Support for the acquisition of the Northshore parcel popularly known as “Moon Camp” by the US Forest Service with the Land and Conservation Fund; stated that Senator Feinstein’s office is requiring Letters of Support by the local agencies in order to add this land acquisition in the budget; indicated that this is a time sensitive matter and the Letter of Support, if approved, would need to be sent to Senator Feinstein’s office within a few days.
Stephen Deitsch, City Attorney, discussed the two findings that are needed in order for the City Council to add an item on the Agenda and indicated this request for a Letter of Support would appear to meet the criteria.
A motion was made by Councilmember Herrick, seconded by Councilmember Mote, to add an Urgency Item (due to the fact that the Council just became aware of this request and the time sensitive nature of the matter) to the Agenda, related to a request for a Letter of Support for the acquisition of the “Moon Camp” parcel to be included in the Land and Water Conservation Fund.
Said motion was approved by the following vote:
AYES: Mote, Segovia, Herrick, Melnick, Putz
NOES: None
ABSTAIN: None
ABSENT: None
Item 1.2
Meeting Minutes
March 8, 2023
Annette Karnes, Big Bear Lake resident and Mountain Homeless Coalition Board Member, took the opportunity to bring awareness about the Mountain Homeless Coalition organization, and the services the organization offers for the local homeless population; encouraged anyone who needs assistance with finding shelter and other resources to reach out to the Mountain Homeless Coalition.
Rick Snow, Big Bear Mountain Brewery representative, expressed his dissatisfaction with the Planning Department regarding the plan-check and variance permit approvals processes related to several improvements he is proposing for the Big Bear Mountain Brewery property; requested that a time extension be granted for his variance permit; in addition to requesting that Temple Lane be annexed back to the adjacent property and turned into a parking lot, citing his safety concerns with the current configuration of Temple Lane.
The following individuals approached City Council to express their support of Rick Snow, the Big Bear Mountain Brewery business, all the proposed property improvements and many echoed Rick’s safety concerns related to Temple Lane; in addition, they requested that the City Council provide an extension of the related variance permit:
Brad Rizou
Robert McKenzie
Randy Bozwell
Katherine Cazab
Cody Holden
Cynthia Booth
Mark Mullin
Rusty Barker
Joyce Barker
Laura Johnson
Laura Chesnut
George Leono
Cody Whitehouse
Tamara Whitehouse
Rick Spaulding
Babetta Jurgens
Alberto Rivera
Merta Forte
Dave Gora
Gabriel Puerta
Debra Liden
Ron Warren
James Sullis
Taylor Borne
Michael Vandenburg
Glenn Yander
Dan Rubendal
Rick Christenson
Dewayne Burley
Kimberlee Kidd
Kimberlee Kidd, Big Bear Lake resident, acknowledged that it has been two years since the Vacation Rental Ordinance has been approved and stated that she would like to see the ordinance reviewed again soon by the
Meeting Minutes
March 8, 2023
City Council; suggested that a Citizen’s Advisory Committee be formed to make related recommendations before Council deliberation; supports raising fines related to illegal parking and illegal snow play during snow conditions.
Daniel Gulbranson, Big Bear Lake resident, expressed his opinion that the City’s Code Compliance Department is overreaching in their efforts relating to issuing citations/fines and towing vehicles during snow conditions; urged the City to look at the adopted Vision, Mission, and Core Value Statements before acting punitively; would like the City to protect the City’s visitor-friendly reputation.
1. CONSENT CALENDAR
A motion was made by Councilmember Herrick, seconded by Mayor Pro Tem Melnick, to approve the Consent Calendar as follows:
1.1 APPROVAL OF DEMANDS – CHECK ISSUE DATE 01/27/2023 THROUGH 02/22/23 IN THE AMOUNT OF $2,043,272.27 AND THE JANUARY 2023 TREASURER’S REPORT Approved.
1.2 BEST BEST & KREIGER WAIVER AND CONSENT LETTER RELATED TO THE
REPLENISH BIG BEAR PROJECT
City Council considered approving the Best Best & Kreiger Waiver and Consent Letter related to the Replenish Big Bear Project and authorizing the City Manager to sign this letter on behalf of the City of Big Bear Lake.
Approved.
1.3 ORDINANCE CANCELING THE CITY’S ASSUMPTION OF RESPONSIBILITY FOR
ENFORCEMENT OF THE MOBILEHOME PARKS ACT AND THE SPECIAL
OCCUPANCY PARKS ACT, AND FINDING THE ACTION EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
City Council considered adopting an ordinance that would revert enforcement responsibilities of mobile home parks back to the state. City Council introduced the ordinance, conducted the first reading of the title and waived further reading at the February 8, 2023 Adjourned Regular Meeting.
Approved and adopted the following ordinance entitled:
ORDINANCE NO. 2023-513
ORDINANCE CANCELING THE CITY’S ASSUMPTION OF
RESPONSIBILITY FOR ENFORCEMENT OF THE MOBILEHOME
PARKS ACT AND THE SPECIAL OCCUPANCY PARKS ACT,
AND FINDING THE ACTION EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
1.4 CONSIDERATION OF NOTICE OF INTENT FOR VACATION OF A PORTION OF
LAKEVIEW DRIVE AND SPRUCE ROAD RIGHT-OF-WAY AND SETTING A PUBLIC
HEARING FOR SUCH VACATION
Meeting Minutes
March 8, 2023
City Council considered a formal resolution of intent to vacate a portion of Lakeview Drive and Spruce Road, and set a public hearing date on the matter. The City Council also considered a formal resolution declaring the vacation of right-of-way exempt from the Surplus Land Act. The proposed vacation of right-of-way (VRW 2022-145) would abandon an approximately 1,000 square foot section of Lakeview Drive and Spruce Road. Private improvements supporting the former Cowboy Express Steakhouse, addressed at 40433 Lakeview Drive have been constructed in this portion of the right-of-way, including parking spaces, and a retaining wall. On February 1, 2023, the Planning Commission determined that the request is consistent with the General Plan.
Approved and adopted the following resolutions entitled:
RESOLUTION NO. 2023-14
RESOLUTION OF THE CITY COUNCIL DECLARING ITS INTENT
TO VACATE A PORTION OF LAKEVIEW DRIVE AND SPRUCE
ROAD AND SETTING A DATE AND TIME FOR A PUBLIC
HEARING ON THE PROPOSED VACATION OF RIGHT-OF-WAY
and
RESOLUTION NO. 2023-15
RESOLUTION OF THE CITY COUNCIL DECLARING THAT THE
PROPERTY LOCATED ON LAKEVIEW DRIVE AND SPRUCE
ROAD ADJACENT TO 40433 LAKEVIEW DRIVE WAY IS EXEMPT
FROM THE SURPLUS LAND ACT AND TAKING RELATED
ACTIONS TO VACATE THIS RIGHT-OF-WAY
1.5 RESOLUTION AUTHORIZING SUBMISSION OF THE 2022 GENERAL PLAN AND
HOUSING ELEMENT ANNUAL PROGRESS REPORTS
City Council considered a formal resolution directing staff to submit two required annual progress reports (APR) to the State of California. The Housing Element APR provides data on the number and types of residential units permitted or built over the past year, and the General Plan APR summarizes the City’s progress towards implementing the goals and policies of the General Plan.
Approved and adopted the following resolution entitled:
RESOLUTION NO. 2023-16
RESOLUTION AUTHORIZING THE SUBMISSION OF THE 2022
GENERAL PLAN AND HOUSING ELEMENT
ANNUAL PROGRESS REPORTS
The Consent Calendar was approved by the following vote:
AYES: Herrick, Mote, Segovia, Melnick, Putz
NOES: None
ABSTAIN: None
Meeting Minutes
March 8, 2023
ABSENT: None
ITEMS REMOVED FROM THE CONSENT CALENDAR
None.
2. DISCUSSION/ACTION ITEMS
2.05 LETTER OF SUPPORT FOR THE “MOON CAMP” PARCEL TO BE INCLUDED IN
THE LAND AND WATER CONSERVATION FUND
A motion was made by Councilmember Mote, seconded by Councilmember Herrick, to approve a Letter of Support for the “Moon Camp” parcel to be included in the Land and Water Conservation Fund.
Said motion was approved by the following vote:
AYES: Segovia, Melnick, Herrick, Mote, Putz
NOES: None
ABSTAIN: None
ABSENT: None
2.1 2023 EXTREME COLD WINTER STORM EVENT - EMERGENCY OPERATIONS
OVERVIEW
City Manager Erik Sund, Director of Public Services Sean Sullivan, and Deputy City Clerk/PIO Rebecca Cannon provided the City Council an overview of the City’s response to the recent winter storm event in relation to Public Works snow removal operations and the City’s communication strategy and efforts.
Captain Kelly Craig from the San Bernardino County Sherrif’s Department and Chief Executive Officer Evan Rayner from the Bear Valley Community Healthcare District provided an overview on their respective agencies’ response to the recent winter storm event and a general update on their overall operations.
Following Council related questions, comments and feedback, Mayor Putz invited up speakers who wanted to speak on this item. The following individuals approached Council:
Manny Arceiga, Big Bear Lake resident, questioned if the City has an Emergency Response Plan and asked who is the City’s Emergency Response Coordinator; indicated that the City did not communicate enough during the storm event and businesses are struggling; stated that he supports Council’s decision to raise fines for illegal parking and illegal snow play; would like to see the community move on from Measure O.
Charlie Brewster, Big Bear Lake resident and local Business Owner, impressed with the Electric company, City and Caltrans recent storm response; concerned about road closures to tourists and the resulting negative economic impact to businesses.
Rick Ray, Big Bear Resident and local Business Owner, praised the City and various agencies for their recent storm response; questioned if there is something the business owners can do to open the highways up for tourists; questioned if there is a business task force planned for the next disaster.
Meeting Minutes
March 8, 2023
Michael Beveridge, Big Bear Lake resident, expressed satisfaction and gratitude regarding the City’s storm response.
Mayor Putz read aloud the County’s Third District Supervisor Dawn Rowe’s written comment, thanked City Council and City staff for their dedication to residents during the recent storms; indicated that she stands ready to assist the local residents and businesses.
Fred Baziz, Big Bear Lake resident, expressed concerns about the City’s berm reduction process, thanked Mayor Putz and the City Manager for their prompt reply to his recent communications; expressed his gratitude to Councilmember Mote and her husband for their help reducing his berm; requested that a no parking sign be removed on a portion of the right side of Pine Knot.
Andy Acosta, Big Bear resident and local Business Owner, spoke of his previous snow removal contracting work completed for the City and County; explained that he has idle equipment that could currently be put to good use; expressed concerns with the City, County and Caltrans storm response; questioned why the roads weren’t cleared faster.
Theodore Trentman, Big Bear resident, questioned the whereabouts of the emergency information spokesperson and why the community is depending on social media for related information; believes the City should contract with a Public Relations firm for emergencies; concerned with lack of plows; indicated that Caltrans does not provide accurate updates; stated he is working with a committee comprised of local residents in an effort to handle emergency responses on their own; expressed the need for an emergency plan.
Loren Hafen, Big Bear Lake resident and local Business Owner, thanked the City and partnering agencies for their emergency storm response; expressed concerns with recent highway closures, especially related to restricting local residents and home owners access up and down the mountain roads; requested that in the future the City would strongly lobby to Caltrans in an effort to keep the roads less restricted in upcoming emergency situations.
Sarah Bouchard, Big Bear Lake resident, expressed her concerns with the City’s snow removal/berm and towing policies; hopes the City can take notes from other effective State and City storm response practices.
Councilmember Herrick proposed a motion that the City Council hold a Special Workshop Meeting in April 2023, to review and discuss the City’s recent emergency response and the City’s current emergency plan relating to all natural disasters and unforeseen urgent incidents. Councilmember Mote seconded the motion.
Said motion was affirmed by the following vote:
AYES: Melnick, Mote, Herrick, Segovia, Putz
NOES: None
ABSTAIN: None
ABSENT: None
3. COMMENTS, ANNOUNCEMENTS & ADDITIONAL CITY BUSINESS
3.1 CITY CLERK, CITY ATTORNEY, CITY MANAGER COMMENTS
Meeting Minutes
March 8, 2023
Erica Stephenson, City Clerk/Director of Human Resources, acknowledged and thanked staff for their commitment and hard work during the storm event and said she is proud of all the community support the employees were able to provide throughout the emergency.
Stephen Deitsch, City Attorney, stated that he was very impressed with how well the City has handled the recent snow emergency.
3.2 COUNCILMEMBER BOARD/COMMITTEE REPORTS & COMMENTS
Councilmember Segovia reported on her attendance at her first Mojave Desert Mountain Integrated Waste Joint Powers Authority Meeting on February 9 and a CalCities Fire Hazard Severity Zone Map Update Meeting.
Councilmember Mote said that it has been fun to see the community come together during this storm event; acknowledged the communication and support from different organizations and agencies within the Valley; announced that the Economic Development Advisory Committee will be meeting March 14 to finalize the Beautification Brochure; briefly reminded the community to be mindful of the snow load on their roofs, uncover gas meters and support local businesses.
ADJOURNMENT
There being no further business to come before the City Council at this Open Session, Mayor Putz adjourned the City Council meeting at 7:57 p.m. in recognition of all the community members that have been negatively impacted as a result of the recent storms.
____________________________
Erica Stephenson, City Clerk
Special Meeting Minutes – March 17, 2023
-
A Special Meeting of the City Council of the City of Big Bear Lake was called to order by Mayor Putz at 9:05 a.m., Friday, March 17, 2023, at the Civic Center, 39707 Big Bear Boulevard, Big Bear Lake, California.
OPEN SESSION
Flag Salute: Flag Salute led by Councilmember Segovia
Councilmembers Present: Mayor Randall Putz
Mayor Pro Tem Perri Melnick
Councilmember Rick Herrick
Councilmember Bynette Mote
Councilmember Kendi Segovia
Others Present: Erik Sund, City Manager
Stephen Deitsch, City Attorney
Erica Stephenson, City Clerk
Rebecca Cannon, Deputy City Clerk
PUBLIC COMMUNICATIONS
Theodore Trentman, Big Bear Lake resident, discussed the websites he has developed for Big Bear residents to utilize as free community resources; indicated that he would like to see more diverse entertainment options for Big Bear residents and visitors.
DISCUSSION & ACTION ITEM
1. CITY COUNCIL STRATEGIC PRIORITIES DISCUSSION
City Council received a presentation from Jacob Green & Associates and engaged in a discussion regarding their collective vision and strategic priorities for Big Bear Lake.
At the hour of 10:05 a.m., Mayor Putz called a short recess.
At the hour of 10:15 a.m. Mayor Putz called reconvened the meeting.
City Council engaged in further discussion and offered their input in relation to their collective vision and strategic priorities for Big Bear Lake.
Following City Council’s discussion, Mayor Putz invited speakers that wished to speak on the item and the following individual approached Council:
Dennis Large, Big Bear Lake resident, commended the City Council and City Manager for holding this Special Meeting; expressed he looks forward to hearing the results of Closed Session and the upcoming Budget process.
Item 1.3
Meeting Minutes
March 17, 2023
At the hour of 11:17 a.m., Council convened to Closed Session in honor and memory of Marcus Deitz.
CLOSED SESSION PUBLIC COMMUNICATIONS
None.
RESULTS OF CLOSED SESSION
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION pursuant to Gov. Code Section 54957 Title of Position: City Manager
No reportable action.
ADJOURNMENT
There being no further business to come before the Council at this Special City Council meeting, Mayor Putz adjourned the meeting at 2:03 p.m.
____________________________
Erica Stephenson, City Clerk
MEETING
DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
THROUGH: Erik Sund, City Manager
FROM: Sandy Benson, Mountain Transit General Manager
SUBJECT: Resolution Approving an Updated Mountain Area Regional Transit Authority Joint Powers Agreement
BACKGROUND
The Mountain Area Regional Transit Authority was formed on December 1, 1993 by the creation of a Joint Powers Agreement (JPA) between the City of Big Bear Lake and the County of San Bernardino. The JPA was formed to implement a public transit system that would serve Big Bear Lake and the surrounding unincorporated County mountain areas; commonly referred to as the Mountain Communities.
The need to update the JPA became necessary recently due to changes in the redistricting of San Bernardino County Supervisors which consolidated the Mountain Communities into one district instead of the previous two separate districts. (Section 3: B Governing Board.) Additionally, due to that fact that the JPA was created 30 years ago, the Mountain Transit Board of Directors requested that Mountain Transit staff begin the process of updating the document with both the City and County approval. The City Attorney has had the opportunity to review the proposed updated JPA document and has approved the attached agreement.
FISCAL IMPACT
There is no additional fiscal impact associated with the execution of the attached JPA document.
ENVIRONMENTAL CONSIDERATIONS
Under Section 15378 of the CEQA Guidelines, this is not a project, and, therefore, no environmental review is required.
RECOMMENDATION
It is recommended that the City Council adopt a Resolution Approving an Updated Mountain Area Regional Transit Authority Joint Powers Agreement.
ATTACHMENT
1. Resolution 2023-XX (including proposed JPA)
Item 1.4
ATTACHMENT 1
RESOLUTION NO. 2023-XX
RESOLUTION APPROVING AN UPDATED MOUNTAIN AREA REGIONAL
TRANSIT AUTHORITY JOINT POWERS AGREEMENT
WHEREAS, the Mountain Area Regional Transit Authority was formed on December 1, 1993 by the creation of a Joint Powers Agreement (JPA) between the City of Big Bear Lake and the County of San Bernardino; and
WHEREAS, the JPA was formed to implement a public transit system that would serve Big Bear Lake and the surrounding mountain communities located in the unincorporated County area; and WHEREAS, due to recent County redistricting changes and the fact that the current agreement is approximately 30 years old, it has become necessary to update the existing JPA document.
NOW, THEREFORE, BE IT RESOLVED by the City Council that the Mayor, is authorized to execute the revised Mountain Area Regional Transit Authority Joint Powers Agreement (attached) in a form approved by the City Attorney and the City Clerk will formally attest to the document.
PASSED, APPROVED AND ADOPTED this 10th day of May, 2023.
Randall Putz, Mayor
ATTEST:
Erica Stephenson, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2023-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 10th day of May, 2023 and that the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Erica Stephenson, City Clerk
19361.00000\41184194.1
AMENDED
AND RESTATED JOINT POWERS AGREEMENT
CREATING THE MOUNTAIN AREA REGIONAL TRANSIT AUTHORITY
This Amended and Restated Joint Powers Agreement (“Agreement”) is made and entered into this ___ day of ______________, 2023, by and between the COUNTY OF SAN BERNARDINO, a county and body politic in the State of California (the “COUNTY”) and the CITY OF BIG BEAR LAKE, a charter city in the State of California (the “City”) with reference to that certain Joint Powers Agreement between the County and the City creating the Mountain Area Regional Transit Authority dated December 1, 1993, as subsequently amended. The County and the City are sometimes individually referred to as a “Party” and collectively as “Parties.”
WITNESSETH:
WHEREAS, the County and the City have a mutual interest in deciding upon and implementing a public transit system to serve the City and nearby areas in the mountains of the County (the “Mountain Communities”); and
WHEREAS, the Parties wish to better coordinate transit services by creating a single umbrella agency which will provide transit services as requested by the Parties and will serve the transit needs of the Mountain Communities and other areas as required; WHEREAS, the Parties desire to set forth herein at length the entire agreement between the Parties for the creation of a public entity under the Joint Exercise of Powers Act to replace the prior agreement for Big Bear Lake Transit Service.
NOW THEREFORE, the County and the City, for and in consideration of the mutual promises and agreements herein contained, do agree as follows:
SECTION 1. Purpose
Each Party to this Agreement has the power to own, maintain and operate a public transportation system and to establish the level of service within its respective jurisdiction. Under authority of Article 1,Chapter5,Division7,Title 1 oftheGovernment Codeofthe State of California commencing with Section 6500, the Parties desire, by joint exercise of their common power, to create and constitute a new public transportationentity separate and distinct from each of the Parties, tobe known as "Mountain Area Regional Transit Authority/SBCo”. This new entity will serve as a unifyingumbrella agency to coordinate service desires of the Parties and to provide such service either directly or thorough subcontract with other operators. It is anticipated that the expertise, efficiencies, and economies resulting from the joint effort and the utilization of available assistance programs will lend impetus to the new transit entity in developing improved public transportation service throughout the Mountain Communities.
19361.00000\41184194.1
SECTION 2. Term
This Agreement shall become effective as of December 1, 1993, and shall continue in full force and effect until terminated by either Party. Any Party may withdraw from the Agreement as provided in Section 13.
SECTION 3. Authority
A. Creation of Authority
Pursuant to Section 6503.5 of the Government Code, there is hereby created a public entity to be known as “Mountain Area Regional Transit Authority/SBCo”, hereinafter referred to as “Mountain Transit” or the “Authority,” branded to the public as Mountain Transit (“MT”), and Mountain Transitshall be a public entity separate and apart from the City and the County.
B. Governing Board
The Authority shall be administered by a governing board of directors comprised of five (5) persons (the “Board”), each serving in their individual capacities as members of the Board, who shall receive compensation for attendance at regular and special meetings of the Board not to exceed the amount of the stipend set forth in the County of San Bernardino Code salary ordinance relating to compensation of County Boards, Commissions, and Committees for County Airports Commissions. Two (2) members shall be City Council Members of the City, appointed by the City Council. The City appointed officials shall serve at the pleasure of the appointing City Council and until their respective successor is appointed. Two (2) members shall be Members of the San Bernardino County Board of Supervisors and/or their designees, one of whom shall be the Supervisor for the County’s Third Supervisorial District representing the Mountain Communities served by Mountain Transit. Members of the Board appointed by the City and members of the Board who are County Supervisors may designate, in writing, another person to represent them as their designee for particular meetings or for all meetings, and such designees shall have full voting power. One member of the Board shall be a representative at-large from the Mountain Communities and shall be selected by a majority of the other members of the Board for a term of two (2) years. The County's and the City's elected officials on the Board, and/or their designees, shall serve as long as the appointing elected official holds office. The Board shall be called the "Board of Directors of the San Bernardino County/Mountain Area Regional Transit Authority.” All voting power shall reside in the Board.
C. Meetings of Governing Board
(1) Regular Meetings
The Board shall provide for its regular meetings; provided, however, that it shall hold at least one (1) regular meeting each year. The date, hour and place of the holding of the regular meetings shall be fixed by resolution of the Board, and a copy of such resolution shall be filed with each Party.
(2) Ralph M. Brown Act
All meetings of the Board including, without limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with California Government Code Section 54950) . (3) Minutes
The Clerk of the Board shall cause to be kept minutes of the regular, adjourned regular, and special meetings of the Board and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board, and to the City and the County. 19361.00000\41184194.1
(4) Quorum
A majority of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time; provided that the affirmative vote of at least three (3) members of the Board shall be required for the approval of any matter on which action of the Board is required.
D.Officers
The Board shall select a chair, a vice chair, and other necessary officials. The Board shall determine the terms of office for each officer of Mountain Transit. All Authority treasury functions, including but not limited to the deposit and custody of all money of the Authority from whatever sources, shall be performed and provided by Authority staff. All Authority financial and controller functions, including but not limited to the draw of warrants to pay demands against the Authority as authorized by the Board, shall be performed and provided by Authority staff. The attorney for the Authority shall be the County Counsel or the City Attorney, or such other attorney appointed by the Board. The authority shall pay the regularly approved and established fees of all officers selected by the Board..
E. Functions
The Board of the Authority shall perform the following functions:
1) Appoint committees;
2) Adopt the budget;
3) Appoint the Authority General Manager;
4) Establish policy;
5) Adopt rules and regulations for the conduct of business; and 6) Perform such other functions as are required to accomplish the purposes of this Agreement.
SECTION 4. Powers
The Authority shall have the powers common to the City and the County to own, maintain and operate a public transportation system; and in the exercise of the powers under this Agreement, Mountain Transit is authorized in its own name to:
A) Employ agents and employees and contract for professional services; B) Make and enter into contracts;
C) Acquire, convey, construct, manage, maintain and operate any buildings, works or improvements;
D) Acquire and convey real and personal property;
E) Incur debts, liabilities and obligations; provided however, the debts, liabilities and obligations incurred by Mountain Transit shall not be, nor shall they be deemed to be, debts, liabilities or obligations of any Party to this Agreement; F) Accept contributions, grants or loans from any private or public agency, or the United States or any department, instrumentality or agency thereof, for the purpose of financing the planning, acquisition, construction, maintenance or operation of transit facilities; G) Invest money in the treasury that is not needed for immediate necessities, as the board determines advisable, in the same manner and upon the same conditions as other local governmental entities in accordance with the California Government Code; H) Sue and be sued;
I) Claim Local Transportation Funds for public and specialized transportation services on behalf of the member agencies as authorized by the Board; and 19361.00000\41184194.1
J) Do all other acts reasonable and necessary to carry out the purposes of this Agreement.
Such powers are subject to the restrictions upon the manner of exercising such powers as are imposed upon the County and the City.
The Authority’s method of operation, level of service and financial participation shall be consistent with the most recently adopted Short Range Transit Plan. Such plan shall be adopted by the Board.
SECTION 5. Parties' Liability
Each Party to this Agreement, whether individually or collectively, does not assume, nor shall a Party be deemed to assume, liability for:
a) Any act of Mountain Transit or any act of Mountain Transit's agents or employees; b) The payment of wages, benefits or other compensation to officers, agents or employees of Mountain Transit; or
c) The payment of workers' compensation or indemnity to agents or employees of Mountain Transit for injury or illness arising out of the performance of this Agreement.
SECTION 6. Financing - Fiscal Year
A) Fiscal Year
For the purposes of this Agreement, the term "fiscal year" shall mean the twelve (12) month period from July 1st, to and including the following June 30th.
B) Annual Budget and Capital Improvement Program
The Board shall hold a public hearing in order to adopt an annual budget and consider a transit capital program. The budget shall be limited to the funds designated for transit and no City or County funds shall be used without prior approval by the respective governing bodies of the City or the County. The adoption of the annual budget shall require a four-fifths vote of the Board. Copies of the proposed annual budget shall be submitted to the governing bodies of the Parties for comment and review at least 30 days prior to the date scheduled for the public hearing and final adoption by the Board.
C) Initial Operating Monies
At the time of submitting its first proposed annual budget and proposed capital improvement program to the legislative bodies of the Parties, the Board shall also submit an estimate of such initial operating capital as may be required to sustain Mountain Transit operations, pending receipt of any revenues and its local transportation fund allocation. Any initial operating monies required shall be apportioned among the Parties as determined by the Board and shall be paid by the Parties to Mountain Transit, subject to repayment by Mountain Transit on reasonable terms to be agreed upon by the Board and the Parties.
D) Annual Financial Support
At the time of preparing Mountain Transit annual proposed operating budget and proposed capital expenditure budget, the Board shall determine the amount of financial support required from the City and the County for the ensuing fiscal year. The support required for the annual operating budget shall be equitably apportioned between the Parties hereto. San Bernardino County Transit Authority (SBCTA) shall assign the portion of its Local Transportation Fund and other funds such as Measure I utilized to finance Mountain Transit’s annual budgets. The annual operating budget shall reflect and include:
i. Funds available from Federal grants and other sources; ii. Transportation service requirements for capital expenditure for replacement and general system use;
iii. Special capital costs required for equipment and facilities to provide additional or 19361.00000\41184194.1
increased service within any area served by the Mountain Transit; and. iv. Such other factors as the Board may deem appropriate.
Following the adoption of the Mountain Transit budget, the Board shall inform the legislative body of each Party of the Board's determination of financial support required for the fiscal year and the computation of the each Party's proportional share. The legislative body of each Party shall assign the portion of its Local Transportation Fund or other fund allocation required to finance its share of the annual operating and capital budget SECTION 7. Provision of Transit Service
On the date it initiates transportation service, Mountain Transit shall exercise the common power of the Parties by providing and maintaining a public transportation service connecting, as well as located within, the corporate limits of the Parties and the unincorporated areas served.
Mountain Transit shall, to the extent feasible and within policy parameters provided for transit services, provide a standardized system of fares and a uniform system of transfers; provided, however, that changes in fares and major changes in routes shall be established by the Board only following public hearing on the proposed change, with detailed notice and supporting information provided to the governing bodies of the Parties at least thirty (30) days prior to the proposed change.
SECTION 8. Transfer of Equipment
Subject to prior approval by the Board, a Party may convey or assign its transportation properties or equipment to Mountain Transit. Reimbursement, if any, for such conveyance or assignment may be based on the valuation of an independent appraiser or by such other means of valuation as may be agreed to by Mountain Transit and the conveying Party.
SECTION 9. Employees
Should any Party request that Mountain Transit assume operation of transportation services previously operated by that Party, and the Board thereafter approves such assumption of operation, then Mountain Transit shall consider employment of public transportation service employees of that Party.
SECTION 10. By-Laws, Rules and Regulations
The Board shall adopt such by-laws as deemed necessary and may from time to time adopt such rules and regulations for the conduct of its meetings and affairs as may be required. Any by-laws, rules and regulations adopted by the governing board maybe amended at any time by a majority vote of the Board.
SECTION 11. Authority Financial Functions
The Authority shall:
A) Receive and receipt for all money of Mountain Transit and place it in the treasury so designated to the credit of Mountain Transit;
B) Pay when due, out of Mountain Transit money, all sums payable on outstanding Mountain Transit bonds and coupons;
C) Pay any other sums due from Mountain Transit from its funds or any portion thereof, upon warrants of the Mountain Transit designated Controller; D) Invest funds in accordance with Section 4 (g) of this Agreement.
E) Issue checks to pay demands against Mountain Transit which have been approved by Mountain Transit’s General Manager or other person designated by the Board; F) Keep and maintain records and books of accounts on the basis of the uniform classification of accounts adopted by the State Controller: the books of accounts shall 19361.00000\41184194.1
include records of assets, liabilities and of contributions made by each Party; and G) Cause to be made an annual audit of the accounts and records of Mountain Transit as prescribed in California Government Code Sections 6505 and 26909.
SECTION 12. General Manager - Appointment and Duties
The Board shall select and appoint a General Manager for the Authority. The duties and responsibilities of the General Manager shall be to carry out the policies and directives of the Board. In addition, the General Manager shall perform the duties and carry out the other responsibilities in furtherance of the purposes of this Agreement as the General Manager is directed by the Board. The General Manager shall serve at the pleasure of the Board.
SECTION 13. Termination - Withdrawal of Party
A Party may withdraw from this Agreement as of the first day of July of any year following twelve months' advance notice to the other Party by resolution of intent to withdraw adopted by the legislative body of that Party; provided, however, that Mountain Transit assets directly attributable to the accumulated capital contribution of the withdrawing Party shall remain with the system and in Mountain Transit’s treasury for use by Mountain Transit without compensation to the withdrawing Party, until the termination of this Agreement and the distribution of assets to all Parties in winding up; and further provided that the withdrawing Party shall remain liable for and shall pay its proportional share of any indebtedness incurred while the withdrawing Party is a Party.
SECTION 14. Winding Up
If this Agreement is terminated, all property and equipment owned by Mountain Transit shall be distributed to the Parties pursuant to contractual or grant requirements that funded said property and equipment. Distribution to each Party shall be made in the same proportion as that reflected in the Parties' accumulated capital contribution accounts as shown in the Controller's books of account. Cash may be distributed in lieu of property or equipment.
If the Parties cannot agree as to the valuation of the property or to the manner of its distribution, the distribution or valuation shall be made by a neutral person appointed by the Board.
This Agreement shall not terminate until all property has been distributed in accordance with this Agreement, and the winding up and property distribution hereunder shall be effected in the manner calculated to cause the least disruption of existing public transportation service.
SECTION 15. Additional Parties
Existing or newly formed municipalities and counties may be added as parties to this Agreement upon their execution of this Agreement, following approval thereof by the Parties, and upon such terms and conditions as may be imposed by the Board.
SECTION 16. Amendments
This Agreement may be amended by written amendment unanimously approved in writing by the Parties.
SECTION 17. Successors
This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties.
SECTION 18. Severability
Should any part, term, portion or provision of this Agreement be finally decided to be in conflict with any law of the United States or of the State of California, or otherwise be unenforceable or ineffectual, the validity of the remaining parts, terms, portions or provisions shall 19361.00000\41184194.1
be deemed severable and shall not be affected thereby, provided such remaining portions or provisions can be construed in substance to constitute the Agreement which the intended to enter in the first instance.
SECTION 19. Termination of Prior Agreement
Not applicable.
SECTION 20. Electronic Signatures
This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Agreement. The Parties shall be entitled to sign and transmit an electronic signature of this Agreement (whether by facsimile, PDF or other email transmission), which signature shall be binding on the Party whose name is contained therein. Each Party providing an electronic signature agrees to promptly execute and deliver to the other Party an original signed Agreement upon request.
19361.00000\41184194.1
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and attested to by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, as of the day and year first above written.
CITY OF BIG BEAR LAKE
_____________________________________ DATE: ___________________ MAYOR
ATTEST: APPROVED AS TO FORM:
_____________________________________ _________________________
CITY CLERK CITY ATTORNEY
COUNTY OF SAN BERNARDINO
_____________________________________ DATE: ___________________
CHAIR, BOARD OF SUPERVISORS
ATTEST: APPROVED AS TO FORM:
_____________________________________ _________________________
CLERK OF THE BOARD OF DEPUTY COUNTY COUNSEL
SUPERVISORS
MEETING
DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
THROUGH: Erik Sund, City Manager
FROM: Sean Sullivan, Director of Public Services
Jared Cheek, Public Works Operations Manager
Jacky Chan, Associate Engineer
SUBJECT: Resolution Awarding a Construction Contract to Cat Tracking, Inc. for the 2023 Citywide Line Striping Project and Finding the Project Exempt from the California Environmental Quality Act
BACKGROUND
The City of Big Bear Lake is responsible for the maintenance and operation of approximately 88 centerline miles of streets. The annual Capital Improvement Program (CIP) budget includes funding for street maintenance and repair activities, including street striping. The current Fiscal Year 2022-23 budget, as well as the proposed Fiscal Year 2023-24 budget, include sufficient funding to stripe City streets twice annually.
In 2022, staff issued a contract for street striping in spring and the work was completed in June. A subsequent contract was issued for work in the fall but work was unable to be completed as the weather changed too rapidly to accommodate the work. Staff has conducted a bid for striping work to be completed two times this year, both Spring and Fall, under one contract.
DISCUSSION
Street Striping is a critical activity managed by Public Works as a part of the annual street maintenance activities. As winter weather and related activities degrade the street striping, it is critical that the lines and markings are updated regularly to ensure the safety of motorists. Staff has conducted a public bid to identify a striping contractor to perform work this spring and again in fall.
The scope of work for the spring effort includes painting of all lane lines, crosswalks, and roadway legends throughout the City. The proposed scope of work for the fall would be the retouching of the lane lines to ensure their maximum visibility going into the winter season.
Staff conducted a bid solicitation for this project in accordance with the City’s purchasing guidelines. On April 13, 2023, staff received, publicly opened and read aloud five (5) bids with the following results:
Item 1.5
Bidder Location Total Bid Price
Cat Tracking, Inc. Riverside, CA $159,913
Chrisp Company Fremont, CA $182,730
Superior Pavement Markings, Inc. Cypress, CA $191,635
Sterndahl Enterprises, Inc. Sun Valley, CA $275,845
WGJ Enterprises DBA PCI Azusa, CA $277,650
Staff has reviewed the bids for completeness, accuracy, and the contractors’ backgrounds for qualifications and experience. Cat Tracking, Inc. is an experienced striping contractor with a demonstrated history of satisfactory completion of similar projects. Cat Tracking, Inc. was the striping subcontractor for the Moonridge Road project, demonstrating that they are experienced working in the City and are familiar with our terrain and related conditions.
The bid specifications for this project indicate the timing on which this work shall be completed as there are two scopes or phases to the project. This award of contact includes both phases. For the Spring striping component, it shall be completed by June 30, 2023. The fall striping shall be completed between September 11 and October 13.
FISCAL IMPACT
Funding for this project is available within the adopted Fiscal Year 2022-23 Capital Improvement Program (CIP) budget and is also considered within the proposed Fiscal Year 2023-24 CIP budget.
ENVIRONMENTAL CONSIDERATIONS
This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to section 15301.c Existing Facilities as maintenance of existing highways and streets.
RECOMMENDATION
It is recommended that the City Council adopt a Resolution Awarding a Construction Contract to Cat Tracking, Inc. for the 2023 Citywide Line Striping Project and Finding the Project Exempt from the California Environmental Quality Act.
ATTACHMENTS
1. Resolution No. 2023-XX
2. Notice of Exemption
ATTACHMENT 1
RESOLUTION NO. 2023-XX
RESOLUTION AWARDING A CONSTRUCTION CONTRACT
TO CAT TRACKING, INC. FOR THE 2023 CITYWIDE LINE
STRIPING PROJECT AND FINDING THE PROJECT EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Big Bear Lake is responsible for the maintenance and operation of approximately eighty-eight (88) centerline miles of streets and the annual Capital Improvement Program (CIP) budget includes funding for street maintenance and repair activities; and, WHEREAS, the maintenance and repair activities include pavement rehabilitation and repair, patching, crack sealing, and street striping; and,
WHEREAS, street striping is a primary activity of the Public Works Division to ensure that the street lines and markings are updated regularly to ensure the safety of motorists; and; WHEREAS, the available budget provides sufficient funding to perform street striping activities twice annually, once in Spring for a complete restriping of all lane lines, crosswalks, and street legends, and once in the fall to retouch lane lines going into the winter season; and; WHEREAS, on April 13, 2023, staff received, publicly opened and read aloud five (5) sealed bids with the lowest bid received being that of Cat Tracking, Inc. with a bid of $159,913; and, WHEREAS, staff reviewed the bids received and the contractors’ backgrounds and experience and have found that Cat Tracking, Inc. is the lowest responsive bidder for this project; and, WHEREAS, funding is available in the adopted Fiscal Year 2022-23 Capital Improvement Program (CIP) budget and is also considered within the proposed Fiscal Year 2023-24 CIP Budget; and,
WHEREAS, this project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301.c Existing Facilities as maintenance of existing highways and streets.
NOW, THEREFORE, BE IT RESOLVED by the City Council that:
1. A construction contract is awarded to Cat Tracking, Inc. for the 2023 Citywide Line Striping Project in the amount of $159,913.
2. The City Manager is authorized to execute all contract documents in a form approved by the City Attorney.
3. This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301.c.
PASSED, APPROVED AND ADOPTED this 10th day of May, 2023.
Randall Putz, Mayor
ATTEST:
Erica Stephenson, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2023-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 10th day of May, 2023 and that the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Erica Stephenson, City Clerk
ATTACHMENT 2
CEQA NOTICE OF EXEMPTION
TO: Clerk of the Board of Supervisors FROM: Engineering Division County of San Bernardino City of Big Bear Lake
385 N. Arrowhead Avenue, 2nd Floor P. O. Box 10000
San Bernardino, CA 92415-0130 Big Bear Lake, CA 92315
Project Title:
Annual Citywide Line Striping
Project Location - Specific:
On various locally owned and maintained street within the City of Big Bear Lake Description of Project:
This project involves the painting of various roadway lines and markings at various locations on locally owned and maintained streets within the City of Big Bear Lake.
Name of Public Agency Approving Project:
City of Big Bear Lake, City Council
Exempt Status: (check one) (State type and section number) XX Categorical Exemption. Section: 15301.c
Reasons why project is exempt:
These repairs are categorically exempt from the California Environmental Quality Act (CEQA) under section 15301.c as maintenance of existing highways and streets.
Lead Agency or Contact Person: Area Code/Telephone/Extension Sean Sullivan (909) 866-5831 ext. 113
Director of Public Services
Date: May 10, 2023
Signature:
_____________________________
Sean Sullivan, Director of Public Services
MEETING
DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
THROUGH: Erik Sund, City Manager
FROM: Sean Sullivan, Director of Public Services
Jared Cheek, Public Works Operations Manager
SUBJECT: Resolution Authorizing an Agreement with Bear Valley Paving for Citywide Street Sweeping Services
BACKGROUND
The City of Big Bear Lake is responsible for the maintenance and operation of approximately 88 centerline miles of streets. A key maintenance activity of the Public Works Division is an annual street sweeping throughout the City to remove cinders and other debris left in the streets from the winter season. Annual street sweeping additionally contributes to enhanced aesthetics throughout the community and compliance with the National Pollutant Discharge Elimination System (NPDES). Funding is included within the adopted Fiscal Year 2022-23 Budget for Annual Street Sweeping services.
DISCUSSION
Historically, street sweeping services have been provided through a combination of both in-house and contract services. The City owns and utilizes a street sweeper primarily for weekly street sweeping services in key parts of the City. For the annual, citywide effort, utilizing contracted services proves to be more effective and efficient.
The scope of work for the proposed street sweeping contract is a one-time sweeping of approximately 88-miles of City maintained streets. The scope indicates that the street is to be swept, from road’s edge to road’s edge, as many times as possible to achieve the desired debris removal and appearance. Staff prepared a Request for Proposals (RFP) for these services and on April 27, 2023, the City received three (3) proposals. The initial results of the RFP are as follows:
Proposer Location Total Bid Price
Guardian Street Sweeping Hesperia, CA $19,466
Bear Valley Paving Big Bear Lake, CA $39,300
Spadaro Enterprises, Inc. dba S&S Sweeping Lancaster, CA $89,995 Staff has reviewed and considered all proposals received to understand their experience and their outlined approach to this scope of work. For example, Bear Valley Paving and Spadaro Enterprises, Inc. both have proposed utilizing two (2) or more sweepers each while Guardian Street Sweeping is proposing a single street sweeper. Each proposer has provided references and has Item 1.6
indicated experience providing these services, demonstrating that they are all qualified.
Staff has reviewed the background of Guardian Street Sweeping and it shows municipal and general construction experience, all of which with satisfactory references and reviews. Staff, however, has concerns with the ability of Guardian to comply with the specifications related to Prosecution of Work / Work Schedule. The specifications provide for thirty (30) calendar days for the selected vendor to complete the work but they also stipulate that work shall continue, uninterrupted but for weekends, holidays, or equipment failures once commenced. The representative from Guardian has indicated that the work schedule in Big Bear Lake will be shared with other contracts with Big Bear Lake receiving two (2) to three (3) days per week of service.
Additionally, Guardian’s proposed price assumes that the work can be completed in approximately ten (10) working days. From previous experience, staff believes that this scope of work should take at least fifteen (15) days or more. As such, there are concerns about the ability of the work to be completed to the desired standard for the price provided.
Staff has contacted Bear Valley Paving to better understand their plan and approach to this work.
Bear Valley Paving has confirmed that their plan will be to commence work in early June and work continuously until the work is completed. Bear Valley Paving is proposing to utilize up to two (2) sweepers, as available, but at least one per day. Bear Valley Paving estimates a schedule of at least fifteen (15) working days, which is consistent with previous experience and 50% more days than the lowest proposal.
As the measurement for the quality of work for this project is not quantifiable but rather is based upon the appearance and subjective assessment of the work, staff believes that the more time that is invested in this project the higher quality that outcome will be. Given the review of all proposals received and feedback from the proposing firms, staff is recommending that the City Council authorize an agreement with Bear Valley Paving for Citywide Street Sweeping Services.
FISCAL IMPACT
Funding for these services is available within the adopted Fiscal Year 2022-23 Operating Budget within the Street Maintenance Section.
ENVIRONMENTAL CONSIDERATIONS
These services do not constitute a project pursuant to the definitions within the California Environmental Quality Act (CEQA) and, therefore, no environmental review is required.
RECOMMENDATION
It is recommended that the City Council adopt a Resolution Authorizing an Agreement with Bear Valley Paving for Citywide Street Sweeping Services.
ATTACHMENT
1. Resolution No. 2023-XX
ATTACHMENT 1
RESOLUTION NO. 2023-XX
RESOLUTION AUTHORIZING AN AGREEMENT WITH
BEAR VALLEY PAVING FOR CITYWIDE
STREET SWEEPING SERVICES
WHEREAS, the Public Works Division is responsible for the maintenance of all public infrastructure; including the City’s roadway network which consists of approximately eighty-eight (88) miles of streets; and,
WHEREAS, a key maintenance activity is annual street sweeping which sweeps the entire width and length of all City-owned streets once per year, which supports the overall appearance of the City and also contributes to the City’s compliance with the National Pollutant Discharge Elimination System (NPDES) requirements related to stormwater; WHEREAS, funding is included in the Fiscal Year 2022-23 annual budget to support the Citywide street sweeping program; and,
WHEREAS, staff developed and circulated a Request for Proposal that outlined the necessary services and expectations for this effort and on April 27, 2023, the City received three (3) proposals; and,
WHEREAS, all proposers demonstrated experience with street sweeping services and provided varying approaches to the work and the lowest cost proposal was that of Guardian Street Sweeping (Hesperia, CA); and,
WHEREAS, staff reviewed the approach to the project of each of the proposers and has found that the approach of Guardian Street Sweeping, the lowest priced proposer, may not best meet the needs of the City for two (2) key reasons; and,
WHEREAS, Guardian Street Sweeping cannot commit to the specifications in that work shall continue uninterrupted, with the exception of weekends and holidays until completed, as they are proposing to split their time between Big Bear Lake and other contracts; and, WHEREAS, the proposal of Guardian Street Sweeping had lead staff to concerns about the quality completion of the assignment as the proposal assumes that the work can be completed within approximately ten (10) working days, using one sweeper, whereas previous experience would indicate that this assignment should take approximately fifteen (15) days or more; and, WHEREAS, staff has contacted representatives of Bear Valley Paving and they indicated that they are able to start in early June and that they will work continuously until the work is completed, with an estimated project duration of fifteen (15) days, using at least one (1) sweeper at all times and two (2) when available; and,
WHEREAS, as the measurement for satisfactory completion of this assignment is not quantifiable but, rather is based upon the appearance and subjective assessment of the work staff believes that the quality of work will be best affected by the devotion of the necessary resources to this work; and,
WHEREAS, staff is recommending the approval of an agreement with Bear Valley Paving for these services.
NOW, THEREFORE, BE IT RESOLVED by the City Council that:
1. An agreement is authorized with Bear Valley Paving for Citywide Street Sweeping Services in the amount of $39,300 and the City Manager is authorized to execute all necessary documents in a form approved by the City Attorney.
PASSED, APPROVED AND ADOPTED this 10th day of May, 2023.
Randall Putz, Mayor
ATTEST:
Erica Stephenson, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2023-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 10th day of May, 2023 and that the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Erica Stephenson, City Clerk
MEETING
DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
THROUGH: Erik Sund, City Manager
FROM: Sean Sullivan, Director of Public Services
Jared Cheek, Public Works Operations Manager
Jacky Chan, Associate Engineer
SUBJECT: Resolution Authorizing a Notice of Completion for the Fiscal Year 2022-23 Annual Street Rehabilitation Project
BACKGROUND
The Fiscal Year 2022-23 Annual Street Rehabilitation Project performed improvements on approximately 1.85 miles of City Streets. The effort included both street reconstruction and asphalt overlay activities, which are varying levels of rehabilitation and repair of streets, and the project was executed through the use of both a general contractor and City Public Works staff.
On June 6, 2022, the City Council awarded a construction contract to Bear Valley Paving in the amount of $1,165,574 for construction services associated with this project. The project is now fully completed and is ready for acceptance by the City Council.
DISCUSSION
Work commenced for the Annual Street Rehabilitation Project in July 2022. Bear Valley Paving, through their contract, performed all roadway pulverization and grinding, the adjustment of all necessary utility covers, and the paving work associated with reconstruction streets. City Public Works staff performed the paving activities on all of the grind and overlay streets. All paving work was completed by October 2022.
In order to perform the street rehabilitation activities, all sewer and storm drain manholes within the affected streets must be adjusted prior to and at the conclusion of the construction efforts.
Given the early onset of winter in late 2022, the manhole adjustments were not able to be completed directly following the paving activities. The manhole adjustments have been the only pending items remaining on this project and those activities have now been completed, as of April 19, 2023, to the satisfaction of staff. In total, the project performed 1.85 miles of street rehabilitation activities across eighteen (18) street segments within the City.
The project is complete and ready for acceptance by the City Council. Upon approval of this item, staff will file a Notice of Completion with the County Recorder’s Office and will subsequently release all retained project funds thirty-five (35) days later.
Item 1.7
FISCAL IMPACT
The total contract award to Bear Valley Paving was $1,165,574.08 and the total expenditure under this contract was $1,159,150.94, which is approximately 0.5% below the contract authorization.
All project efforts, including contracted activities, the work of Public Works staff, and all project was support was completed within the budget of $1,400,000.
ENVIRONMENTAL CONSIDERATIONS
At the time of authorizing the bid solicitation, the City Council found this project to be categorically exempt from the California Environmental Quality Act (CEQA).
RECOMMENDATION
It is recommended that the City Council adopt a Resolution Authorizing a Notice of Completion for the Fiscal Year 2022-23 Annual Street Rehabilitation Project.
ATTACHMENTS
1. Resolution No. 2023-XX
2. Notice of Completion
ATTACHMENT 1
RESOLUTION NO. 2023-XX
RESOLUTION AUTHORIZING A NOTICE OF COMPLETION
FOR THE FISCAL YEAR 2022-23 ANNUAL STREET
REHABILITAITON PROJECT
WHEREAS, the Fiscal Year 2022-23 Annual Street Rehabilitation project identified pavement reconstruction and rehabilitation efforts on approximately 1.85 miles of City streets, over eighteen (18) street segments with a project budget of $1,400,000; and, WHEREAS, construction efforts would be coordinated through both a general contractor and City Public Works Staff, which has been the historic practice in the City of Big Bear Lake; and, WHEREAS, under this approach, the general contractor would perform all roadway pulverization and grinding, the adjustment of all necessary utility covers, and the paving work associated with reconstruction streets and City staff would perform the paving work on all of the grind and overlay streets; and,
WHEREAS, on June 6, 2022, the City Council awarded a contract to Bear Valley Paving for this project in the amount of $1,165,574.08; and,
WHEREAS, the project commenced in July 2022 and all paving work was completed by October 2022; and,
WHEREAS, all additional project work, specifically the adjustment of sewer manholes, was completed as of April 19, 2023; and,
WHEREAS, Bear Valley Paving has completed the scope of work for this project to the satisfaction of staff and staff is recommending the acceptance of work for this project and the issuing of a Notice of Completion; and,
WHEREAS, the work of Bear Valley Paving was completed for a total cost of $1,159,150.94, which is approximately 0.5% below the awarded contract amount and the total project was completed within the approved budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council that:
1. Staff is authorized to file a Notice of Completion for the Fiscal Year 2022-23 Annual Street Rehabilitation Project
2. All retained funds from the project (5% of total contract) shall be released no sooner than thirty-five (35) days from recordation of said notice.
PASSED, APPROVED AND ADOPTED this 10th day of May, 2023.
Randall Putz, Mayor
ATTEST:
Erica Stephenson, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2023-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 10th day of May, 2023 and that the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Erica Stephenson, City Clerk
ATTACHMENT 2
RECORDING REQUESTED BY:
City of Big Bear Lake
WHEN RECORDED, PLEASE MAIL TO:
City of Big Bear Lake
City Clerk
PO Box 10000
Big Bear Lake, CA 92315
SPACE ABOVE THIS LINE FOR RECORDER’S USE
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:
The undersigned is OWNER or agent of the OWNER of the interest or estate state below in the property hereinafter described:
The FULL NAME of the OWNER is: CITY OF BIG BEAR LAKE
The FULL ADDRESS OF THE owner is: 39707 BIG BEAR BOULEVARD, PO BOX 10000, BIG BEAR LAKE, CA 92315
The NATURE of the INTEREST or ESTATE of the undersigned is: agent of the owner that constructed the improvements.
The full name(s) and address(es) of all persons, if any, who hold such interest or estate with the undersigned as joint tenants or as tenants in common are:
NAME(S) ADDRESS(ES)
The full name(s) and address(es) of the successor(s) in interest of the undersigned if the property was transferred subsequent to the commencement of the work of improvement herein referred to:
NAME(S) ADDRESS(ES)
A work of improvement on the property hereinafter described was completed on: April 19, 2023 The work of improvement completed is described as follows: FISCAL YEAR 2022-23 ANNUAL STREET
REHABILITATION PROJECT
The NAME OF THE ORIGINAL CONTRACTORS, if any, for such work of improvement is: BEAR VALLEY PAVING, INC.
The street address of said property is: VARIOUS STREETS WITHIN THE CITY OF BIG BEAR LAKE, NO APN
The property on which said work of improvement was completed is in the City of Big Bear Lake, County of San Bernardino, State of California.
Dated: 5/10/2023
Sean Sullivan, Public Services Department, City of Big Bear Lake
VERIFICATION
I, Sean Sullivan, am the Director of Public Services, the declarant of the foregoing Notice of Completion. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Executed on 5/10/2023 at Big Bear Lake, CA.
Sean Sullivan, Public Services Department, City of Big Bear Lake
MEETING
DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
THROUGH: Erik Sund, City Manager
FROM: Sean Sullivan, Director of Public Services
Katya Meyer, Project Manager
SUBJECT: Resolution Adopting an SB 1 Funded Project List for Fiscal Year 2023-24
BACKGROUND
Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, was signed into law in April 2017 to address significant transportation funding shortfalls across the State of California. The legislation established the Road Maintenance and Rehabilitation Account (RMRA) that provides funding to local agencies for essential road maintenance and rehabilitation, safety and other transportation improvements. The City has received these funds annually since 2017 and historically applies them to the Annual Street Rehabilitation Projects. The City’s anticipated RMRA proceeds for FY 2023-24 is $124,763.
The California Transportation Commission (CTC) adopted annual reporting guidelines for SB 1 funding recipients. A key element of these guidelines requires that the receiving agency shall adopt a resolution, at a public meeting, identifying the projects to be funded with these resources. The adopted project funding list, which is to be submitted by July 1 of each year, shall include a description and location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvements.
DISCUSSION
The City of Big Bear Lake has budgeted anticipated revenue of $124,763 from the Road Maintenance and Rehabilitation Account (RMRA) for Fiscal Year 2023-24. The City has historically budgeted these funds as a part of the Annual Street rehabilitation Project which is included in the adopted Five-Year Capital Improvement Program on an annual basis. The Annual Street Rehabilitation Project has a budget of approximately $1,800,000 with the funding derived from RMRA proceeds as well as Measure I Local Funds, the Sanitation Fund, and the General Fund.
As outlined within the proposed resolution, the project for Fiscal Year 2023-24 includes two pavement rehabilitation methodologies, grind and overlay and street reconstruction, over approximately 2.34 miles of City streets. The project includes twenty-two (22) identified street sections throughout the City. Work is anticipated to be completed between July 2023 and June 2024 and the life of the improvements will range from 10 – 20 years depending on the identified pavement rehabilitation methodology for each section.
Item 1.8
FISCAL IMPACT
This action is required in order for the City to receive its annual funding allocation from the Road Maintenance and Rehabilitation Account (RMRA). The anticipated proceeds for Fiscal Year 2023- 24 is approximately $124,763.
ENVIRONMENTAL CONSIDERATIONS
Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and, therefore, no environmental review is required.
RECOMMENDATION
It is recommended that the City Council adopt a Resolution Adopting an SB 1 Funded Project List for Fiscal Year 2023-24.
ATTACHMENT
1. Resolution No. 2023-XX
ATTACHMENT 1
RESOLUTION NO. 2023-XX
RESOLUTION ADOPTING AN SB 1 FUNDED PROJECT LIST
FOR FISCAL YEAR 2023-24
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of City of Big Bear Lake are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $124,763 in RMRA funding in Fiscal Year 2023- 24 from SB 1; and
WHEREAS, this is the 7th year in which the City is receiving SB 1 funding which will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate around 0.7 miles of streets, and mill and overlay around 1.64 miles of streets throughout the City this upcoming fiscal year; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in a “good” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into “excellent” condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Big Bear Lake, State of California, as follows:
1. The foregoing recitals are true and correct.
2. The following list of newly proposed projects will be funded in-part with Fiscal Year 2023- 24 Road Maintenance and Rehabilitation Account revenues:
Project Title: Fiscal Year 2023-24 Street Rehabilitation Project Project Description: This project involves a grind and overlay process removing approximately 2” section of weathered and degraded asphalt and replacing it with a new 2” course of asphalt on approximately 0.7 miles of roadway. The remainder of the project will involve 1.64 miles of street reconstruction including the pulverization, removal of old material, compaction of the subgrade, and lastly placement of 4” of asphalt.
Project Location:
Reconstruction From To
1 Alden Road Big Bear Blvd South End
2 Chalet Lane Summit Blvd Golden West Drive
3 Chip O Wood Lane Forest Rd Canvasback Road
4 Circle Lane Willow Landing Circle Lane
5 Conklin Road Big Bear Blvd Oak Street
6 Paine Court Big Bear Blvd End
7 Pulaski Road Waterview Drive End
Mill and Overlay From To
8 Arroyo Drive Forest Rd Lakeview Drive
9 Lake Drive Forest Rd Afton
10 Lake Drive Afton Rd End
11 Northern Cross Drive Avalon Rd End
12 Blue Bird Court Mockingbird Drive End
13 Brownie Lane Thrush Dr Wren Drive
14 Eagle's Flight Place Stony Creek Rd End
15 Great Spirits Way Sun God Pl Maryland Road
16 Medicine Man Place Pennsylvania Av Sun God Place
17 Paramount Road Olympic Dr Scandia Road
18 Point Road Lake Dr End
19 Snake Dance Trail Maryland Rd Sun God Place
20 Stone Road Pine Knot Ave Knickerbocker Road
21 Sun God Place Snake Dance Trail Great Spirits Way
22 Vista Lane Narrow Lane Dream Street
Estimated Project Schedule: Start (07/23)– Completion (06/24) Estimated Project Useful Life: 10-20 years
PASSED, APPROVED AND ADOPTED this 10th day of May, 2023.
Randall Putz, Mayor
ATTEST:
Erica Stephenson, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2023-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 10th day of May, 2023, and that the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Erica Stephenson, City Clerk
MEETING
DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
THROUGH: Erik Sund, City Manager
FROM: Jeff Willis, Fire Chief
Mike Maltby, Asst. Fire Chief/Fire Marshall
SUBJECT: Resolution Ratifying Big Bear Fire Authority Ordinance No. BBFA 2023-001 Adopting the 2022 Edition of the California Fire Code and the 2022 Edition of the California Residential Code, Along with Certain Changes, Modifications, Amendments, Additions, Deletions and Exceptions as Adopted by the Big Bear Fire Authority
BACKGROUND
The California Health and Safety Code requires local governments to adopt the most recent editions of the model codes related to construction, fire protection, maintenance of buildings and other public safety concerns.
DISCUSSION
At the April 11, 2023 Fire Authority Regular Board Meeting, the Big Bear Fire Authority adopted Ordinance No. BBFA 2023-001, which adopts by reference the 2022 California Fire Code and the 2022 California Residential Code with certain amendments, as identified therein, through express findings of local necessity. Under the statutory procedures for adoption of the model codes by reference, the Fire Authority initially adopts the 2022 California Fire Code and the 2022 California Residential Code with its local amendments. The Fire Authority ordinance is not effective until it is ratified by the City and filed with the California Department of Housing and Community Development.
The Fire Authority has adopted Ordinance No. BBFA 2023-001 and as such, staff recommends that the City Council now ratify the Ordinance to ensure it applies within the City. Once ratified, staff will file the Ordinance with the California Department of Housing and Community Development.
FISCAL IMPACT
There is no fiscal impact associated with the adoption of the proposed resolution.
ENVIRONMENTAL CONSIDERATIONS
Under Section 15378 of the CEQA Guidelines, this is not a project, and, therefore, no environmental review is required.
Item 1.9
RECOMMENDATION
It is recommended that City Council adopt a Resolution Ratifying Big Bear Fire Authority Ordinance No. BBFA 2023-001 Adopting the 2022 Edition of the California Fire Code and the 2022 Edition of the California Residential Code, Along with Certain Changes, Modifications, Amendments, Additions, Deletions and Exceptions as Adopted by the Big Bear Fire Authority.
ATTACHMENTS
1. Resolution No. 2023-XX
2. BBFA Ordinance No. 2023-001
ATTACHMENT 1
RESOLUTION NO. 2023-XX
RESOLUTION RATIFYING BIG BEAR FIRE AUTHORITY ORDINANCE
NO. BBFA 2023-001 ADOPTING THE 2022 EDITION OF THE CALIFORNIA FIRE CODE AND THE 2022 EDITION OF THE CALIFORNIA
RESIDENTIAL CODE ALONG WITH CERTAIN CHANGES,
MODIFICATIONS, AMENDMENTS, ADDITIONS, DELETIONS, AND
EXCEPTIONS AS ADOPTED BY THE BIG BEAR FIRE AUTHORITY
WHEREAS, the Big Bear Fire Authority (Fire Authority), a Joint Powers Authority, between the Big Bear Lake Fire Protection District and the Big Bear City Community Services District as member agencies, provides fire service with the City of Big Bear Lake (City); and WHEREAS, the Big Bear Fire Authority adopted Ordinance No. BBFA 2023-001 adopting with certain amendments, additions, deletions and exceptions, the 2022 California Fire Code and the 2022 California Residential Code; and
WHEREAS, the City Council of the City of Big Bear Lake has the opportunity to ratify, amend or reject the Fire Authority Ordinance; and
WHEREAS, the City Council of the City of Big Bear Lake must delegate the authority to enforce the Fire Authority’s Ordinance to the Fire Authority’s Fire Chief; and WHEREAS, the Fire Authority Ordinance is not effective until it is ratified by the City and filed with the California Department of Housing and Community Development; and WHEREAS, all legal prerequisites to the adoption of this resolution have occurred.
NOW, THEREFORE, the City Council does resolve as follows:
Section 1. The City Council hereby specifically finds that all of the facts set forth in the preceding recitals of this ordinance are true and correct.
Section 2. The City Council hereby finds that the action is covered by Section 15061(b.)(3.) the “common sense” exemption, which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is taking place to be in compliance with state law, as is determined to fall under the common sense exemption.
Section 3. The City Council of the City of Big Bear Lake does hereby ratify the Big Bear Fire Authority Ordinance No. BBFA 2023-001 adopting with certain amendments, additions, deletions and exceptions, the 2022 California Fire Code and the 2022 California Residential Code and delegates the authority to enforce the Big Bear Fire Authority’s Ordinance to the Fire Authority’s Fire Chief.
Resolution No. 2023-24
Section 4. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED AND ADOPTED this 10th day of May, 2023.
Randall Putz, Mayor
ATTEST:
Erica Stephenson, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing resolution, being Resolution No. 2023-XX was duly passed and adopted by the said City Council and attested by the City Clerk of said City, all at a regular meeting of the said City held on the 10th day of May, 2023 and that the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Erica Stephenson, City Clerk
ATTACHMENT 2
MEETING
DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Erik Sund, City Manager
SUBJECT: 2023 Mission Statement, Core Values and Strategic Priorities
BACKGROUND
On March 17th, 2023, City Council conducted a Special Meeting Workshop with the consultant, Jacob Green and Associates to discuss the City of Big Bear Lake’s mission statement, core values and strategic priorities.
DISCUSSION
By conducting this workshop, the City Council has taken the first step to revisiting its mission statement, reevaluating its core values, and providing a strategic “road map” for the City over the next fiscal year. This “road map” of strategic priorities will be incorporated into the City’s budget over the next fiscal year, so that budget will align with the City Council’s strategic plan.
The mission statement is a concise explanation of the City's reason for existence. It describes the City's purpose and its overall intention. The mission statement supports the vision and serves to communicate purpose and direction to residents, employees, customers, vendors and other stakeholders.
Core values list the core principles that will guide and direct the City and its culture. In a valuesled City, the values create a moral compass for the City and its employees. It guides decisionmaking and establishes a standard against which actions can be assessed. These core values are an internalized framework that is shared and acted on by City leadership.
Strategic priorities are goals that will guide the City as it approaches projects and City services. It is important to note, there can be a number of City objectives that support these goals. The strategic priorities will align with the City’s mission and core values to lead the City of Big Bear Lake to success. It is also the intent, that once adopted the City’s agenda reports will reflect and cite the conformance to the City’s strategic priorities. Additionally, every year as part of the budget process the City Council will revisit these strategic priorities to ensure that they are still relevant to the needs of Big Bear Lake.
Item 2.1
FISCAL IMPACT
There is no fiscal impact related to City Council discussing and formalizing their mission statement, core values, and strategic priorities for the City of Big Bear Lake.
ENVIRONMENTAL CONSIDERATIONS
Under Section 15378 of the California Environmental Quality Act (CEQA) Guidelines, this is not a project, and , therefore, no environmental review is required.
RECOMMENDATION
It is recommended that the City Council adopt the proposed City of Big Bear Lake mission statement, core values and strategic priorities.
ATTACHMENTS
1. Proposed Mission and Core Values
2. Proposed 2023-24 Strategic Priorities
ATTACHMENT 1
Organizational Mission of Big Bear Lake:
Develop the partnerships, programs, and plans for Big Bear Lake to become a balanced and sustainable place in which to live, work, and recreate.
Core Values of Big Bear Lake:
• Demonstrate a Passion for Service, while Delivering High Service Levels
• Build Trust & Partnership with the Community and Staff • Be Business Friendly and Maintain Economic Vitality
• Seek Pro-Ac�ve Solu�ons through Ini�a�ve and
Ownership
ATTACHMENT 2
2023-24 Strategic Priori�es
Support and invest in sustainable infrastructure projects and programs consistent with the needs of our community Maintain fiscal responsibility
Invest in atrac�ng, retaining and developing staff, strive to deliver the best customer service
Enhance community engagement and local advocacy
strategies, while bolstering partnerships with residents, businesses and regional partners
Preserve and protect the quality of life for the residents and the businesses, while maintaining a balance with the environment to foster a sustainable economic base
AGENDA REPORT Service, Quality, Community
MEETING DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Erik Sund, City Manager
PREPARED BY: Reginald A. Lamson, DWP General Manager
SUBJECT: Proposed Ordinance Regarding Adjustments to the DWP’s Rates, Charges and Fees for Water Service
BACKGROUND:
On February 6, 2023, the City Council and the DWP Board of Commissioners conducted a joint workshop to review the proposed adjustments to water fees. On April 11, 2023, the DWP Board of Commissioners conducted a Public Hearing on the proposed adjustments to the water rates, charges and fees. The purpose of this meeting was to inform the public of the proposed rate adjustments, to ensure the public had a clear understanding of the intended use of funds generated by the proposed adjustments and allow the public to comment on or present a protest to the proposed adjustments. No members of the public attended the public hearing.
In accordance with Proposition 218, the public was allowed to ask questions and voice their concerns regarding the proposed adjustments to water fees. The public also had the opportunity to submit a written protest of the proposed adjustments to water fees before or during the public hearing.
As of April 11, 2023, the DWP had 15,929 water service accounts. In accordance with Proposition 218, to constitute a majority protest, the DWP would need to receive 7,965 written protests in order for the proposed adjustments to water fees to be voted down by the rate payers.
The DWP received two (2) valid written protests that were counted before the close of the hearing, and additionally, one (1) non-conforming protest was received but it was not counted.
After consideration of the public comments, written protests and discussion, the proposed increase to water fees was considered by the Board of Commissioners, and the Board of Commissioners adopted Resolution No. DWP 2023-04 to adopt adjustments to the DWP’s rates, charges, and fees for water service.
FINANCIAL IMPACT:
On February 9, 2023, after reviewing the City of Big Bear Lake, Department of Water and Power Water Rate Study Final Report / January 31, 2023 (the “Report”), which was prepared by Raftelis, the Board of Commissioners directed Staff to proceed with the necessary steps to increase rates under California Proposition 218.
Item 2.2
Proposed Ordinance Regarding Adjustments to the DWP’s Rates, Charges and Fees for Water Service May 10, 2023
The adjustments to water rates are intended to allow the DWP to ensure that revenues are adequate to fund prudent operations and maintenance costs, debt service requirements, and needed water system infrastructure improvements.
The proposed rate adjustments have been developed to ensure adequate funding for the DWP for the next five years with an annual increase to service charges and usage fee rates of up to 4% per year commencing on July 14, 2023 through June 30, 2028.
The impact on the DWP’s average residential customer is expected to be an increase of approximately $1.65 per month ($3.30 per bi-monthly billing cycle, or a total of approximately $20 in the first year).
RECOMMENDATION:
It is recommended that the City Council read the title, waive further reading and introduce an Ordinance of the City of Big Bear Lake, County of San Bernardino, State of California, Approving Adjustments to the DWP's Rates, Charges and Fees for Water Service.
Enc. 1. Rate Proposal Presentation
2. Ordinance No. 2023-xxx
3. Resolution No. DWP 2023-04
4. The City of Big Bear Lake DWP Water Rate Study Final Report - Jan. 31, 2023 ATTACHMENT 1
1 City of Big Bear Lake
Water Rate Study
City Council Presentation
May 10, 2023
Rate Study Discussion
• Proposed rate increases not to exceed 4% per year for the next five years › Actual rates implemented may be lower than noticed
• All rates proposed to be increased “across-the-board” utilizing the existing cost of service and rate design
• Maintains
› Very high fixed revenue recovery
› Existing fixed charge design
› Existing commodity rate structure and tiers
2 Steps in Conducting a Rate Study
3 Start
Step 1 Rate Setting
Framework
Financial goals and
policies
Pricing objectives
Alternative rate structures
for evaluation
Step 2 Financial Plan
Evaluation of operating
and capital costs
Cash flow analysis for
financial sufficiency
Scenario Analysis
Step 3 Rate Design
Cost of Service
Analyses (Cost
allocations)
Alternative rates design
Rate calculations &
customer impact
analyses
Step 4 Rate Adoption
Documentation
Study Report
Review by legal counsel
Completion
Step 5 Rate Adoption
– 218 Procedures
Notice to DWP
customers
Public Hearing
Proposition 218 Requirements
• An agency cannot collect revenue beyond what is necessary to provide service • Revenues derived by the charge shall not be used for any other purpose other than that for which the charge was imposed
• The amount of the fee may not exceed the proportional cost of service for the parcel
• No charge may be imposed for a service unless that service is actually used or immediately available to the owner of property
• A written notice of the proposed charge shall be mailed to the record owner of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge
4 DWP Rate Study Drivers
Financial Drivers
Capital Improvement Program
(CIP)
Replenish Big Bear
Inflation
5 Community Characteristics
Low per capita water demands
Transiency of population
Growing affordability and fairness
concerns
DWP Rate Study Goals and Objectives
• Ensure a financially sustainable and self-sufficient utility • Maintain the existing rate structure
• Minimize rate impacts to customers
6 Financial Plan Elements
7 FINANCIAL PLAN
INPUTS
• Customer connections
• Billed water use
• Revenues
• Operating expenses
• Capital plan
• Beginning cash position
CAPITAL PROJECT FUNDING
Funding Mix
(Cash vs. Debt)
Debt
Covenants
ANNUAL CASH FLOW
FISCAL POLICIES AND TARGETS
Cash
Reserves
Debt Service
Coverage
ANNUAL REVENUE
REQUIREMENTS
O&M Expense Projections
8 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Expenses Budgeted Projected Projected Projected Projected Projected Water Production $1,349,160 $1,410,817 $1,474,997 $1,540,007 $1,608,131 $1,679,533 Conservation/Communications $345,679 $366,620 $384,807 $402,942 $422,038 $442,150 Transmission/Distribution $1,042,044 $1,160,028 $1,217,227 $1,274,849 $1,335,510 $1,399,388 Water Operations $877,009 $949,674 $995,252 $1,038,815 $1,084,567 $1,132,632 Customer Field Services (Meters) $904,858 $912,731 $959,195 $1,007,684 $1,058,843 $1,112,831 Customer Service $1,268,602 $1,331,792 $1,396,640 $1,461,922 $1,530,598 $1,602,863 Administration $2,094,904 $1,965,256 $2,056,693 $2,142,733 $2,232,896 $2,327,408 Total O&M $7,882,256 $8,096,916 $8,484,812 $8,868,951 $9,272,584 $9,696,805 Capital Improvement Program
• 10-year forward looking CIP: $3.2 million per year
• 10-year historical CIP: $2.6 million per year
• Targets an additional $600k per year of system reinvestment 9 Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Budgeted Projected Projected Projected Projected
Infrastructure Spending $2,745,605 $2,883,170 $2,233,565 $2,727,091 $2,273,403 Equipment $37,128 $95,498 $65,450 $80,682 $57,188
IT $0 $0 $0 $127,500 $0
Site Improvements $552,500 $127,500 $276,250 $276,250 $0 Total $3,335,233 $3,106,168 $2,575,265 $3,211,523 $2,330,591 Existing
Debt
Service
10 Existing Debt FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 2010 USDA Bond
Principal $74,000 $76,000 $78,000 $80,000 $82,000 $84,000 Interest $68,329 $66,548 $64,719 $62,843 $60,919 $58,948 Total - 2010 USDA Bond $118,005 $118,186 $118,328 $118,431 $118,494 $118,518 2012 USDA Bond
Principal $92,000 $95,000 $97,000 $100,000 $103,000 $106,000 Interest $115,638 $113,108 $110,495 $107,828 $105,078 $102,245 Total - 2012 USDA Bond $183,261 $183,676 $183,135 $183,429 $183,649 $183,797 2013 USDA Bond
Principal $55,000 $57,000 $58,000 $60,000 $61,000 $63,000 Interest $75,309 $73,769 $72,188 $70,565 $68,901 $67,196 Total - 2013 USDA Bond $130,309 $130,769 $130,188 $130,565 $129,901 $130,196 iBank 7-002 Loan
Principal $26,464 $27,179 $27,913 $28,666 $29,440 $30,235 Interest $24,692 $23,968 $23,224 $22,460 $21,676 $20,870 Annual Fee $2,783 $2,704 $2,622 $2,539 $2,453 $2,364
Total - iBank 7-002 Loan $53,940 $53,851 $53,759 $53,665 $53,569 $53,470 2019 Bonds
Principal $201,600 $205,900 $210,300 $214,800 $219,300 $224,000 Interest $246,696 $242,412 $238,036 $233,567 $229,003 $224,343 Total - 2019 Bonds $448,296 $448,312 $448,336 $448,367 $448,303 $448,343 CEC Loan/non-parity Debt
Principal $113,402 $114,525 $115,673 $116,843 $118,013 $119,192 Interest $8,192 $7,068 $5,921 $4,751 $3,581 $2,402
Total - CEC Loan/non-parity Debt $81,000 $81,000 $81,000 $81,000 $81,000 $81,000 Total Existing Debt Service $1,014,810 $1,015,793 $1,014,746 $1,015,457 $1,014,916 $1,015,324 Reserves Policies & Cash Balance
• Financial Policies:
› Operating Reserve Target: 25% of Operating Expenses
› Capital Facilities Reserve Target: 100% of average CIP over 5 years › Minimum Debt Service Coverage Ratio: 1.20
• Beginning balance FY 2022-23 (July 1, 2022):
› $11.1 M Unrestricted / Unassigned Cash
› $1.5 M Restricted Cash for debt service is excluded
11 Proposed
Financial Plan
12 • Maximum 4% gross rate increases
for all years
• No new borrowings (debt) assumed
• Achieves a capital accomplishment
rate of 85% in all years, absent
additional grant funding and/or lowinterest borrowings • Maintains strong debt service
coverage
• Achieves Board designated cash
reserve targets through FY 2032
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Revenue Adjustments
(Maximum) 4.0% 4.0% 4.0% 4.0% 4.0%
Proposed Debt $0 $0 $0 $0 $0
Financial Plan Discussion
• Inflationary pressures on DWP O&M as well as introduction of new, future costs (Replenish Big Bear)
› Weighted average cost increases over the planning period is approximately
4.5% per year
• Historical Revenue Funded* CIP spend is $2.6M; average future CIP is $3.2 million
› Requires an additional $600k per year, unadjusted for inflation • Up to 4% increases per year allow for flexibility as there is borrowing capacity if low-interest opportunities exist
• Strong cash position allows for more modest rate increases *Revenue Funded excludes grants and low-interest loans
13 14
Proposed Rates & Impacts
Proposed Rates and Cost of Service
• Proposed rates rely on the existing cost of service analysis performed in the 2018 Study
• The existing cost of service and rate design is the basis for the current rates
• Therefore, all rates are proposed to be increased Across the Board by up to 4% per year
15 Proposed Monthly Fixed Charges – Residential
(Maximum 4% per year shown)
16 Meter Size Current
Rates
Proposed
FY 2024
Proposed
FY 2025
Proposed
FY 2026
Proposed
FY 2027
Proposed
FY 2028
5/8'' $41.15 $42.80 $44.51 $46.29 $48.14 $50.07
1'' $73.65 $76.60 $79.66 $82.85 $86.16 $89.61
1'' (with fire) $46.00 $47.84 $49.75 $51.74 $53.81 $55.96 1 1/2'' $92.30 $95.99 $99.83 $103.82 $107.97 $112.29
2'' $117.95 $122.67 $127.58 $132.68 $137.99 $143.51
3'' $193.90 $201.66 $209.73 $218.12 $226.84 $235.91
4'' $256.70 $266.97 $277.65 $288.76 $300.31 $312.32
6'' $421.85 $438.72 $456.27 $474.52 $493.50 $513.24
Proposed Monthly Fixed Charges – Commercial
(Maximum 4% per year shown)
17 Meter Size Current
Rates
Proposed
FY 2024
Proposed
FY 2025
Proposed
FY 2026
Proposed
FY 2027
Proposed
FY 2028
5/8'' $48.75 $50.70 $52.73 $54.84 $57.03 $59.31
1'' $81.25 $84.50 $87.88 $91.40 $95.06 $98.86
1 1/2'' $99.90 $103.90 $108.06 $112.38 $116.88 $121.56
2'' $125.55 $130.57 $135.79 $141.22 $146.87 $152.74
3'' $201.50 $209.56 $217.94 $226.66 $235.73 $245.16
4'' $264.35 $274.92 $285.92 $297.36 $309.25 $321.62
6'' $429.45 $446.63 $464.50 $483.08 $502.40 $522.50
Proposed Commodity Rates ($/CCF)
(Maximum 4% per year shown)
18 Class/Tier
($/ccf)
Current
Rates
Proposed
FY 2024
Proposed
FY 2025
Proposed
FY 2026
Proposed
FY 2027
Proposed
FY 2028
Residential
Tier 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Tier 2 $2.98 $3.10 $3.22 $3.35 $3.48 $3.62
Tier 3 $4.47 $4.65 $4.84 $5.03 $5.23 $5.44
Tier 4 $5.87 $6.10 $6.34 $6.59 $6.85 $7.12
Tier 5 $7.77 $8.08 $8.40 $8.74 $9.09 $9.45
Tier 6 $13.82 $14.37 $14.94 $15.54 $16.16 $16.81
Commercial
Tier 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Tier 2 $3.52 $3.66 $3.81 $3.96 $4.12 $4.28
Single Family Bill Impacts
(Maximum 4% Rate Increase Shown)
19 Commercial Bill Impacts
(Maximum 4% Rate Increase Shown)
20 • 75% of all Commercial connections are 5/8” or 1” meters Water Rate Increases –
Regionally and Nationally
21 Survey Water Utility -
Annual Increase
AWWA National (1996-2018) 5.1%
AWWA National (2016-2018) 7.2%
AWWA California-Nevada (2013-2017) 6.5%
Big Bear Lake DWP (2007-2022) 1.6%
*AWWA = American Water Works Association
Neighboring Agency Comparison
22 Next Steps
• Board of Commissioners Workshop December 20, 2023
• Board of Commissioners Workshop January 24, 2023
• City Council Rate Workshop February 6, 2023
• Rate Authorization and Notice to Customers
• Public Hearing April 11, 2023
• Rate Implementation July 2023
23 ATTACHMENT 2
ORDINANCE NO. 2023-xxx
ORDINANCE OF THE CITY OF BIG BEAR LAKE, COUNTY OF
SAN BERNARDINO, STATE OF CALIFORNIA, APPROVING
ADJUSTMENTS TO THE DWP'S RATES, CHARGES
AND FEES FOR WATER SERVICE
WHEREAS, the Board of Commissioners of the City of Big Bear Lake, Department of Water and Power adopted Resolution No. DWP 2023-04 (attached) revising its rates, fees and charges for water service, following a public hearing on such revisions conducted by the Board of Commissioners as provided by Article XIII D of the California Constitution; and WHEREAS, pursuant to Section 816 of the City Charter for the City of Big Bear Lake and Section
13.24.200 of the Big Bear Lake Municipal Code, such resolution shall become effective only upon approval by an ordinance adopted by the City Council of the City of Big Bear Lake.
NOW, THEREFORE, the City Council of the City of Big Bear Lake, California, does ordain as follows:
Section 1. The City of Big Bear Lake does hereby approve Resolution No. 2023-04 of the Board of Commissioners of the Department of Water and Power of the City of Big Bear Lake, effective upon the effective date of this Ordinance.
Section 2. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the City Council has determined that the increases in water service charges are not a project subject to CEQA pursuant to Section 15378(b)(4) because the charges constitute the creation of a funding mechanism or other governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. In addition, even if the action is considered a "project" subject to CEQA, it is exempt under Section 15273 of the CEQA Guidelines and Public Resources Code section 21080(b )(8) because the increased charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services. The documents and materials that constitute the record of proceedings on which these findings have been based are located at 41972 Garstin Drive, Big Bear Lake, CA 92315. The custodian for these records is the Department of Water and Power Board Secretary.
Section 3. The City Clerk shall certify to the adoption of this Ordinance and shall either: (a) have this Ordinance published in a newspaper of general circulation within 15 days after its adoption or (b) have a summary of this Ordinance published twice in a newspaper of general circulation, once five days before its adoption and again within 15 days after its adoption.
Ordinance No. 2023-xxx
PASSED, APPROVED AND ADOPTED this 14th day of June 2023.
Randall Putz, Mayor
ATTEST:
Erica Stephenson, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF BIG BEAR LAKE )
I, Erica Stephenson, City Clerk of the City of Big Bear Lake, California, do hereby certify that the whole number of the City Council of the said City is five; that the foregoing Ordinance No. 2023-xxx is a full, true and correct original of Ordinance No. 2023-xxx of the City of Big Bear Lake entitled:
ORDINANCE OF THE CITY OF BIG BEAR LAKE, COUNTY OF
SAN BERNARDINO, STATE OF CALIFORNIA, APPROVING
ADJUSTMENTS TO THE DWP'S RATES, CHARGES
AND FEES FOR WATER SERVICE
was duly passed and adopted by the said City Council, approved and signed by the Mayor of said City, and attested by the Clerk of Said City, all at a regular meeting of the said Council on the 14th day of June, 2023, and that the same was so passed and adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
I do hereby further certify that pursuant to the provisions of Section 36933 of the Government Code of the State of California that the foregoing Ordinance No. 2023-xxx was duly and regularly published according to law and the order of the City Council and circulated within the said City.
Erica Stephenson, City Clerk
ATTACHMENT 3
RESOLUTION NO. DWP 2023-04
A RESOLUTION OF THE BOARD OF COMMISSIONERS
OFTHE DEPARTMENT OFWATER& POWER
OF THE CITY OF BIG BEAR LAKE,
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
ADOPTING ADJUSTMENTS
TO THE DWP'S RATES, CHARGES AND FEES FOR WATER SERVICE
AND REQUESTING APPROVAL BY THE CITY COUNCIL
WHEREAS, the staff of the Department of Water and Power of the City of Big Bear Lake C'DWP") have caused the preparation of the City of Big Bear Lake Department of Water and Power Water Rate Study Final Report / January 31,2023 (the "Report") which recommended adjustments to the DWP's rates, charges and fees for water service; and WHEREAS, the Report concluded that the proposed adjustments are designed to provide revenue streams which are needed to support the current level of service, repayment of indebtedness and provide for the planned implementation of system rehabilitation programs; and WHEREAS, based on the conclusions of the Report, the DWP Board of Commissioners finds that it is necessary to adjust rates, charges and fees for water service in the amounts set forth in this Resolution and that such rate adjustments will result in suffrcient revenue to the DWP to cover the costs ofproviding water services; and
WHEREAS, Section 13.24.200 of the City of Big Bear Lake Municipal Code authorizes the adjustment of rates, charges and fees for water service provided (i) the DWP Board of Commissioners adopts the adjusted rates, charges and fees by resolution following a noticed public hearing; and (ii) such resolution is forwarded to the City Council of the City of Big Bear Lake ("City Council") and subsequently approved by ordinance; and WHEREAS, pursuant to Article XIIID of the Califomia Constitution, at least 45 days prior to the hearing on this Resolution, the DWP mailed to all record owners and all tenant account holders within the DWP's service area a notice of the public hearing on the proposed adjustments to the rates, charges and fees for water service; and
WHEREAS, pursuant to Article XIIID, said notice identified: (1) the amounts of the proposed adjustments to the rates, charges and fees; (2) the basis upon which the rates, charges and fees were calculated; (3) the reason for the proposed adjustments; and (4) the date, time, and location for the public hearing on the proposed rates, charges and fees; and WHEREAS, the DWP Board of Commissioners finds that the proposed adjustments satisfu the substantive requiranents of Article XIIID, Section 6(b), because the revenues derived from the proposed rates, charges and fees: (i) will not exceed the amount required to provide the water service; (ii) will be used only for the purposes stated herein; (iii) do not exceed the proportional cost of service attributable to each property; (iv) provide services which are immediately available to the customer; and (v) will not be used for general govemmental services; and WHEREAS, to minimize the need to develop altemative sources of water supply, the DWP's Board of Commissioners also desires to continue a cost basis tiered rate structure for residential water usage rates in accordance with Water Code Sections 375 et seq.; Page I of5
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the DWP, City of Big Bear Lake, as follows:
Section 1. Incorporation.
The matterc set forth in the recitals to this Resolution are true and correct statements and are made legislative findings and determinations of the DWP Board of Commissioners, and by this reference are incorporated herein and made an operative part of this Resolution.
Section 2. Defined Terms.
The following capitalized terms are used herein and shall have the meanings ascribed to them below.
Private Fire Service Charge - the Service Charge associated with pipelines designated specifically for fire use, such as those supplying on-site fire sprinklers.
Private Fire Usage Charge - a metered water usage charge which the DWP charges to all of its customers for any water usage through designated Fire Service Meters when such usage is not related to fire suppression or prevention.
Residential Use Residential use includes use primarily for purposes of habitation and not included within the definition of Commercial Use above. For purposes of this Resolution, a private residence that includes a home office is a residential use under this Resolution.
Residential Usage Charge - the rate charged to residential customers by the DWP for metered water usag€, currently expressed as a rate per CCF and representing the DWP's cost of water actually delivered.
Service Charge - a readiness to serve charge applicable to every property for which a meter has been installed, regardless ofthe quantity of water used or whether the service is tumed on or off.
CCF - one hundred cubic feet of water or 748 gallons.
Commercial Use - Commercial use includes any use by a business, whether for profit or nonprofit, whose predominant purpose is to provide goods and/or services to consumers. For purposes of this Resolution, multi-family housing complexes served through a master meter and public entities, including without limitation schools, parks and special districts, are considered commercial users. Commercial users also include hotels, motels, inns, bed and breakfasts or any other transient lodging establishment primarily engaged in providing ovemight or otherwise temporary lodging for the general public where meals may be served to transient occupants under applicable laws or regulations.
Commercial Usage Charges - the rates charged to commercial customers by the DWP for metered water usage, currently expressed as a rate per CCF and representing the DWP's cost of water actually delivered.
Irrigation Water - water used outdoors for the purposes of irrigating landscaping.
Minimum Monthly Bill - includes Service Charge plus a credit for up to 4 CCF of usage per month.
Usage Charge - the rate charged by the DW?, in addition to the Service Charge, for metered water usage, currently expressed as a rate per CCF.
Section 3. Residential Usage Charges.
Residential Usage Charges shall be as follows:
Table I -Residential Usage Fees (monthly and bi-monthly) Section 4. Commercial Usage Charges.
Commercial Usage Charges shall be as follows:
Table 2- Commercial Usage Fees (monthly)
Commercial Usage Fee per CCF Effective:
Usage
Monthly
CCFs
July 14,
2021
July I ,
2024
July I
,
2025
July I
,
2026
July 1,
2027
Tier One 0-4
Tier Two Over 4 $ 3.66 $ 3.81 $ 3.96 $ 4.12 s 4.28
Section 5. Private Fire Usage Charges.
The Private Fire Usage Charges shall be waived so long as the usage is attributable to fire suppression or prevention. If the usage is for any other purpose, the charges will be as set forth in this Resolution for the type or category ofuse.
Section 6. Service Charges.
A. The Service Charges shall be as shown in Tables 3 through 5, subject to the priorities set forth in Article III sections 3.08 through 3.13 of the Trust Indenture Agreement relating to the City of Big Bear Lake, Califomia, Department of Water and Power 1996 Water Revenue Refunding Bonds.
I Usage for Residential customers is measured on a bi-monthly basis, meaning (for example) that Residential customers will not move into tier 2 unless they use more than 8 ccfin a two-month period.
Residential Customers
Residential Usage Fees per CCF Effective:
Tier Monthly
CCFsr
BiMonthly
CCFs
July 14,
2023
July l,
2024
July I
,
2025
July 1,
2026
July 1,
2027
Tier One 0-8 Included in Minimum Bill
Tier Two 5-12 9-24 $ 3.10 g 3.22 $ 3.35 $ 3.48 $ 3.62
t3-20 25-40 s 4.65 s 4.84 $ s.03 $ s.23 $ 5.44
Tier Four 4l -60 $ 6.10 $ 6.34 $ 6.s9 s 6.8s $ 7.12
Tier Five 6l - 100 s 8.08 $ 8.40 s 8.74 $ 9.09 s 9.45
Tier Six Over 50 Over 100 $ 14.37 $ 14.94 s 15.54 $ 16.r6 s 16.81
lncluded in Minimum Bill
0-4
Tier Three
21-30
3 1-50
Table 4-Commercial Service Charges (monthly)
2 Residential Private Fire Service Charge is billed on a bi-monthly basis at twice the appticable minimum monthly service charge noted above.
Residential Customers
Minimum Monthly Service Charge (includes up to 4 CCF of water usage) Effective:
Meter Size July 14,
2023 Jtly 1,2O24 luly 1 ,2025 July 1,2026 luly 1,2027
5/8" $ 42.80 s 44.51 s 48.14 $ 50.07
I $ 76.60 s 79.66 s 82.85 s 86.16 $ 89.61
1" required for hre
code $ 47.84 g 49.7s $ 51.74 s 53.81 $ 55.96
1-1/2" $ 95.99 $ 99.83 s 103.82 $ I 07.97
s|22.67 s127.58 s I 32.68 s 143.51
$201.66 s209.73 $21 8.12 s226.84 $235.91
$266.97 9277.65 $288.76 s300.31 $3 12.32
$438.72 94s6.27 s474.52 s493.50 s513.24
Commercial Customers
Minimum Monthly Service Charge (includes up to 4 CCF of water usage) Effective:
Meter Size Jtrly 14,2023 luly 1,2024 July I, 2025 luly 1,2026 July 1,2027 s/8" $ 50.70 $ s2.73 s 54.84 s 57.03 $ 59.31
I $ 84.50 $ 87.88 s 91.40 $ 98.86
1" required for hre
code s 52.81 s 54.92 $ 57.12 s 59.40 $ 6t.78
t-1/2" $ 103.90 $ 108.06 sl12.38 sl16.88 $ l2l .56
$ 130.57 $ 135.79 st4t.22 $ 146.87 sl52.74
J $209.56 $2r7.94 s235.73 s245. l6
s285.92 $297.36 s309.25 s321.62
s429.4s s464.50 s483.08 $502.40
Private Fire Service Customers
Minimum Monthly Service Charge Effective:
Meter Size July 14,2023 Iuly 1,2024 Jtly 1,2025 luly 1,2026 Iu'ly 1,2027 I $ s.04 $ s.24 $ 5.4s $ 5.67 $ s.90
$ 10.65 $ l 1.08 $ 1l.52 $ l 1.98
$ 10.24 $ 10.65 $ I1.08 $ l 1.52 $ l 1.98
6" $ 15.39 s 16.0r $ 16.65 s 17.32 $ 18.0r
$ 20.54 s 2l .36 $ 22.21 s 23.10 $ 24.02
10" $ 25.69 $ 26.72 $ 27.79 s 28.90
Table 3-Residential Service Charges (monthly)
Table S-Private Fire Service Charges (monthly)2
$ 46.29
9112.29
$ 137.99
s 95.06
5226.66
s274.92
ss22.s0
$ 10.24
$ 30.06
Section 7. Rate Implementation.
The DWP Board of Commissioners has evaluated and hereby approves the rates for water service charges as set forth in Section 6 of this Resolution. Ifordained by the City Council, the rates shall be in effect for services provided on or after July 14,2023, and shall be similarly imposed and increased each July 1 thereafter for each respective year, through and including July 1,2027, aI lhe rates and in the amounts set forth in Section 6 ofthis Resolution.
Section 8. Effective Date.
This Resolution shall be effective upon the effective date of the ordinance adopted by the City Council, approving this Resolution.
Section 9. CEQA Findings.
In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the DWP Board of Commissioners has determined that the increases in water service charges are not a project subject to CEQA pursuant to Section 15378(bX4) because the charges constitute the creation of a funding mechanism or other governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. In addition, even if the action is considered a "project" subject to CEQA, it is exempt under Section 15273 of the CEQA Cuidelines and Public Resources Code section 21080(b)(8) because the increased charges are for the purpose of meeting operational and maintenance expenses of the aforernentioned services. The documents and materials that constitute the record ofproceedings on which these findings have been based are located a|41972 Garstin Drive, Big Bear Lake, CA 92315. The custodian for these records is the Board Secretary.
Section 10. Invalidation of Resolution.
In the event this Resolution is declared invalid in part, the remainder of this Resolution shall remain unaffected.
PASSED, APPROVED, AND ADOPTED this I lth day of April 2023.
AYES: u{oat, Eni+h/ 1LW/ \lilte/
NOES:
ABSTAIN:
ABSENT: Cg[w'ktl a2 ,/to4....*-
Robert Tarras, Chair
DWP Board of Commissioners
'e
Eagleson, S
DWP Board of Commi SSioners
Date
ATTEST:
ATTACHMENT 4
City of Big Bear Lake:
Department of
Water and
Power
Water Rate Study
Final Report / January 31, 2023
Page left blank for double-sided printing.
445 S. Figueroa Street, Suite 1925
Los Angeles, CA 90071
www.raftelis.com
January 31, 2023
Reginald “Reggie” Lamson
General Manager
City of Big Bear Lake
Department of Water and Power (DWP)
PO Box 1929
Big Bear Lake, CA 92315
Subject: Water Rate Study Report
Dear Mr. Lamson, Raftelis is pleased to provide this Water Rate Study Report for the City of Big Bear Lake Department of Water and Power. This Report includes the development of a financial plan for the fiscal year 2023 through the fiscal year 2032. The rates within are proposed for adoption and implementation for five years beginning in July 2023. The objectives of the 2022 Rate Study include:
1. Development of a financial plan and proposed revenue adjustments to ensure financial sufficiency, reserves funding at adopted levels, and funding for planned capital investments and
2. Calculation of water rates that reflect the DWP's policy objectives and fully recover the DWP’s cost of providing service. We have enjoyed working with you, and we thank the DWP staff, as well as the Board of Commissioners, for the support provided during this Study.
Sincerely,
Kevin Kostiuk Sarah Wingfield
Senior Manager Associate Consultant
City of Big Bear Lake Department of Water and Power – Water Rate Study Report i
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY............................................................................................. 1 Study Background........................................................................................................................ 1 Agency Background..................................................................................................................... 1 Current Rates............................................................................................................................... 2 Legal Framework ......................................................................................................................... 4 Cost-Based Ratesetting Methodology.......................................................................................... 4 Cost of Service............................................................................................................................. 5 Results and Recommendations ................................................................................................... 6 Proposed Rates ........................................................................................................................... 6 Customer Impacts........................................................................................................................ 8
2. BACKGROUND ........................................................................................................ 10 Agency Background................................................................................................................... 10 Study Background...................................................................................................................... 10
3. KEY INPUTS AND ASSUMPTIONS ......................................................................... 11
4. FINANCIAL PLAN..................................................................................................... 17 Factors Affecting Revenue Adjustments .................................................................................... 17 DWP Revenues ......................................................................................................................... 17 DWP Operating Expenses ......................................................................................................... 19 DWP Capital Improvement Program.......................................................................................... 20
5. PROPOSED RATES ................................................................................................. 28 Service Charges ........................................................................................................................ 28 Usage Fees................................................................................................................................ 31
6. BILL IMPACTS.......................................................................................................... 32 Customer Impacts...................................................................................................................... 32
7. WATER RATE SURVEY........................................................................................... 34 City of Big Bear Lake Department of Water and Power – Water Rate Study Report ii
LIST OF TABLES
Table 1-1: Current Residential Service Charges....................................................................................................... 2 Table 1-2: Current Commercial Service Charges ..................................................................................................... 2 Table 1-3: Current Monthly Fire Service Charges..................................................................................................... 3 Table 1-4: Current Usage Fees.................................................................................................................................... 3 Table 1-5: Proposed Residential Monthly Service Charges .................................................................................... 6 Table 1-6: Proposed Commercial Monthly Service Charges................................................................................... 7 Table 1-7: Proposed Monthly Fire Service Charges................................................................................................. 7 Table 1-8: Proposed Usage Fees................................................................................................................................ 7 Table 3-1: FY 2023 Service Charges ($/Month) ....................................................................................................... 12 Table 3-2: FY 2023 Usage Fees ($/ccf) ..................................................................................................................... 12 Table 3-3: Inflationary Assumptions ........................................................................................................................ 13 Table 3-4: Projected Water Connection Growth and Water Demand ................................................................... 14 Table 3-5: Projected Water Connections by Meter Size......................................................................................... 15 Table 3-6: Projected Water Demand by Customer Class....................................................................................... 16 Table 4-1: Projected Water Revenues ...................................................................................................................... 18 Table 4-2: Projected O&M Expenses........................................................................................................................ 19 Table 4-3: Water Utility Capital Improvement Program.......................................................................................... 20 Table 4-4: Water Debt Service................................................................................................................................... 20 Table 4-5: Reserve Targets........................................................................................................................................ 21 Table 4-6: Proposed Five-Year Rate Revenue Adjustments.................................................................................. 22 Table 4-7: Proposed Financial Plan Proforma ........................................................................................................ 23 Table 5-1: Five-Year Proposed Residential Service Charges................................................................................ 29 Table 5-2: Five-Year Proposed Commercial Service Charges .............................................................................. 29 Table 5-3: Five Year Proposed Fire Service Charges............................................................................................. 30 Table 5-4: Proposed Usage Fees ($/ccf) .................................................................................................................. 31
LIST OF FIGURES
Figure 1-1: Residential Monthly Bill Impacts for a 5/8-inch Meter.......................................................................... 8 Figure 1-2: Residential Monthly Bill Impacts for a 1-inch Meter............................................................................. 8 Figure 1-3: Commercial Monthly Bill Impacts for a 5/8-inch Meter......................................................................... 9 Figure 1-4: Commercial Monthly Bill Impacts for a 1-inch Meter............................................................................ 9 Figure 4-1: Proposed Revenue Adjustments and Debt Coverage ........................................................................ 24 Figure 4-2: Operating Financial Plan........................................................................................................................ 25 Figure 4-3: Estimated Ending Reserve Balances ................................................................................................... 26 Figure 4-4: Capital Program and Financing Plan.................................................................................................... 27 Figure 6-1: Residential Customer Bill Impacts (FY 2023 vs. Proposed FY 2024)................................................ 32 Figure 6-2: Commercial Bill Impacts for a 5/8-inch Meter (FY 2023 vs. Proposed FY 2024).............................. 33 Figure 6-3: Commercial Bill Impacts for a 1-inch Meter (FY 2023 vs. Proposed FY 2024)................................. 33 Figure 7-1: Water Bill Comparison ........................................................................................................................... 34 City of Big Bear Lake Department of Water and Power – Water Rate Study Report 1
1. Executive Summary
Study Background
The City of Big Bear Lake (City) Department of Water and Power (DWP) engaged Raftelis in 2022 to complete a Water Rate Study (Study). The Study consists of developing DWP’s long-range financial plan, evaluating the existing cost of service analysis, and calculating water rates for a five-year study period.
The Study encompasses a nine-year financial planning period from fiscal year (FY) 2023 to FY 2032 and five years of proposed rates, for implementation beginning July 2023 and each July thereafter. For the purposes of this Study, FY 2023 is the fiscal year beginning on July 1, 2022 and ending on June 30, 2023. Raftelis collaborated closely with the DWP’s staff and Board of Commissioners to derive rates that meet DWP’s policy objectives. The main objectives that informed the study include: » Adequately recovering all cost requirements to maintain the utility’s financial sufficiency » Evaluating the financial impacts of, and incorporating the costs for, the future Replenish Big Bear water supply augmentation project » Minimizing rate impacts to customers » Maintaining the existing rate structure and a high degree of fixed charge revenue » Fairly and equitably allocating costs between customer classes Agency Background
The City of Big Bear Lake was incorporated in 1980 and became a charter city in 1983. The City of Big Bear Lake DWP was formed in 1989 with the purchase of the retail water system from Southern California Water Company. The DWP provides water service to Residential and Commercial customers in the Bear Valley of the San Bernadino Mountains. The DWP serves the area which includes the City of Big Bear Lake and the unincorporated communities of Fawnskin, Erwin Lake, Lake William, Sugarloaf, and Moonridge. The DWP serves approximately 15,900 customers, the majority of whom are Residential customers. In addition to serving single family and multi-family residences, DWP supplies water to schools, institutions, businesses, restaurants, hotels, and the community at large. The DWP is organized and operated pursuant to the California Water Code and is governed by a five-member Board of Commissioners (Board).
Water supply comes from water produced from the local groundwater basin through a combination of gravity (or slant) wells and traditional vertical, electric wells. To increase resilience of supply and availability of supply for future users, the DWP has partnered with neighboring agencies on Replenish Big Bear, a water supply augmentation project which treats existing flows and then recharges the groundwater basin.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 2 Current Rates
The DWP’s existing water rate structure consists of the following components:
1. Service Charge – for all water customers, based on meter size
2. Fire Service Charge – for all customers with private firelines, based on fire line size
3. Usage Fee – for all customers, per one hundred cubic feet (ccf) of usage, customer class, and tier » Single Family Residential (SFR) – six tier rate structure » Commercial and Institutional – two tier rate structure Table 1-1 shows the DWP’s current monthly Service Charges for its Residential customer class. Note that, while these charges are shown in monthly terms, Residential customers are billed on a bi-monthly basis and therefore see a charge twice as large as the values in column C for each bill received. Each connection’s Service Charge includes a volumetric allotment of 8 ccf per billing period (4 ccf per month).
Table 1-1: Current Residential Service Charges
A B C
Line Meter Size FY 2023
1 5/8-inch $41.15
2 1-inch $73.65
3 1-inch (required for firecode) $46.00
4 1 ½-inch $92.30
5 2-inch $117.95
6 3-inch $193.90
7 4-inch $256.70
8 6-inch $421.85
Table 1-2 shows the DWP’s current monthly Service Charges for its Commercial customers. Commercial customers are billed monthly. Each connection’s Service Charge includes a volumetric allotment of 4 ccf per month (the commercial billing period).
Table 1-2: Current Commercial Service Charges
A B C
Line Meter Size FY 2023
1 5/8-inch $48.75
2 1-inch $81.25
3 1-inch (required for firecode) $50.78
4 1 ½-inch $99.90
5 2-inch $125.55
6 3-inch $201.50
7 4-inch $264.35
8 6-inch $429.45
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 3 Table 1-3 shows the DWP’s current monthly fire Service Charges. Table 1-3: Current Monthly Fire Service Charges A B C
Line Fireline Size FY 2020
1 1-inch $4.85
2 2-inch $9.85
3 4-inch $9.85
4 6-inch $14.80
5 8-inch $19.75
6 10-inch $24.70
7 12-inch $29.60
Table 1-4 shows the DWP’s current Usage Fees for variable water use in ccf, listed by customer class and tier. Tier 1 units for both SFR and Commercial are included within the Service Charge; Tier 1 therefore shows a rate of $0.00 in the table.
Residential rates are billed bi-monthly but stated here on a monthly basis and Commercial tiers are monthly.
Table 1-4: Current Usage Fees
A B C D E
Line Customer Class Residential Tier
Width1
Commercial Tier
Width Usage Fee
1 Single Family Residential
2 Tier 1 0-4 $0.00
3 Tier 2 5-12 $2.98
4 Tier 3 13-20 $4.47
5 Tier 4 21-30 $5.87
6 Tier 5 31-50 $7.77
7 Tier 6 50+ $13.82
8 9 Commercial
10 Tier 1 0-4 $0.00
11 Tier 2 5+ $3.52
1 Usage for Residential customers is measured on a bi-monthly basis, meaning (for example) that Residential customers will not move into tier 2 unless they use more than 8 ccf in a two month period.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 4 Legal Framework2
The rate-making process, especially for water agencies in California, begins with a review of the legal requirements and framework currently in place. The major legal requirements include Proposition 218 and Article X, Section 2 of the California Constitution, which are outlined in the following sections.
California Constitution – Article XIII D, Section 6 (Proposition 218) Proposition 218 was enacted by voters in 1996 to ensure, in part, that fees and charges imposed for ongoing delivery of a service to a property (“property-related fees and charges”) are proportional to, and do not exceed, the cost of providing service. Water service fees and charges are property-related and subject to the provisions of Proposition 218. The principal requirements, as they relate to public water service fees and charges, are as follows:
1. Revenues derived from a property-related charge imposed by a public agency shall not exceed the costs required to provide the property-related service.
2. Revenues derived by the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
3. The amount of the fee or charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.
4. No fee or charge may be imposed for a service unless that service is actually used or immediately available to the owner of property.
5. A written notice of the proposed fee or charge shall be mailed to the record owner of each parcel not less than 45 days prior to a public hearing, when the agency considers all written protests against the charge.
As stated in the American Water Works Association’s (AWWA) Manual of Water Supply Practices M1, Principles of Water Rates, Fees, and Charges, Seventh Edition (M1 Manual), “water rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” Proposition 218 requires that water rates cannot be “arbitrary and capricious,” meaning that the rate-setting methodology must establish a clear nexus between costs and the rates charged.
California Constitution – Article X, Section 2
Article X, Section 2 of the California Constitution was established in 1976 and states the following:
“It is hereby declared that because of the conditions prevailing in this State the general welfare requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable, and that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of such waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and for the public welfare.” Article X, Section 2 of the California Constitution institutes the need to preserve the State’s water supplies and to discourage the wasteful or unreasonable use of water by encouraging conservation. As such, public agencies are constitutionally mandated to maximize the beneficial use of water, prevent waste, and encourage conservation.
Cost-Based Ratesetting Methodology
To develop utility rates that comply with Proposition 218 and industry standards while meeting other goals and policy objectives of a service provider, there are four primary steps, outlined below. 2 Raftelis does not practice law nor does it provide legal advice. The above discussion provides a general overview of Raftelis’ understanding as rate practitioners and is labeled “legal framework” for literary convenience only. The DWP should consult with its legal counsel for specific guidance.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 5 Revenue Requirement Determination
The rate-making process starts by determining the base year (Test Year) revenue requirement, which for this Study is Fiscal Year 2024 which runs from July 1, 2023 through June 30, 2024. The revenue requirement should sufficiently fund the utility’s O&M expenses, debt service, capital expenses, and reserve funding.
Cost of Service Analysis (COS)
The annual cost of providing water and wastewater service is distributed among customer classes commensurate with their service requirements. A COS analysis involves the following:
1. Functionalize costs. Examples of functions are supply, treatment, transmission, distribution, storage, meter servicing, and customer billing. 2. Allocate functionalized costs to cost components. Cost components include supply, base delivery, maximum day, maximum hour3, conservation, fire protection, meter servicing, and customer servicing and billing costs. 3. Distribute the cost components. Distribute cost components, using unit rates, to customer classes in proportion to their demands and burdens on the water system. This is described in the M1 Manual published by AWWA. Rate Design and Calculations Rates do more than simply recover costs. Within the legal framework and industry standards, properly designed rates should support and optimize a blend of utility objectives, such as conservation, affordability for essential needs, and revenue stability, among other objectives. Cost-justified rates act as a public information tool in communicating these objectives to customers.
Rate Adoption
Rate adoption is the last step of the rate-making process. Raftelis documents the rate study results in this Study which reflect the basis upon which the rates were calculated, the rationale and justifications behind the proposed charges, any changes to rate structures, and anticipated financial impacts to ratepayers. Changes to rates and impacts to ratepayers can happen for a variety of reasons, including, but not limited to: a change in the total costs to serve customers; changes to the areas in which operating and capital costs are incurred; changes to water system components; changes to a water system’s customer base and demand patterns; changes in cost of service methodology; and changes to rate structures and design.
Cost of Service
The DWP staff and the Board of Commissioners decided to utilize the prior COS performed by the previous rate consultant in 2017-18. This Study therefore relies upon the existing COS and adjusts water rates based on the results of the Raftelis financial plan.
3 Collectively maximum day and maximum hour costs are known as peaking costs or capacity costs.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 6 Results and Recommendations
The results and recommendations that Raftelis developed in collaboration with the DWP staff and the Board of Commissioners include the following:
» Planned revenue adjustments (gross revenue increases) not to exceed 4% per year in FY 2024 through FY 2032 » Proposed revenue adjustments not to exceed 4% per year for adoption in FY 2024 through FY 20284 » Continuity of the existing rate structure and rate design The revenue adjustment represents increases to existing rate revenues and is based upon the underlying cost to serve customers and thus the water rates. The three main drivers affecting the DWP’s revenue adjustments include reserve funding, debt coverage on existing debt (as well as maintaining future debt capacity), and capital project funding. Without additional revenue adjustments, the DWP cannot maintain targeted cash reserve levels, achieve minimum debt coverage requirements, or adequately fund the long-term Capital Improvement Plan (CIP) expenditures.
Within the five year rate horizon the DWP will begin to incur costs for Replenish Big Bear. The payments officially begin in FY 2027 with costs estimated at approximately $300,000 per year. The Replenish Big Bear project represents a significant new source of water reliability as well as a new annual cost. Proposed Rates The resulting water rates are based on the recommended increases described above. The proposed rates for FY 2024, the rate-setting year, are a result of applying the recommended FY 2024 increase to the existing rates. Rates for all years beyond FY 2024 are adjusted based on the proposed maximum 4% annual revenue adjustment.
Table 1-5 shows the proposed Residential Service Charges for the study period. The charges shown below are in monthly terms. Residential customers are billed bi-monthly. All rates are shown to the nearest penny.
Table 1-5: Proposed Residential Monthly Service Charges
A B C D E F G
Line Meter Size FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 5/8-inch $42.80 $44.51 $46.29 $48.14 $50.07
2 1-inch $76.60 $79.66 $82.85 $86.16 $89.61
3 1-inch (required for fire code) $47.84 $49.75 $51.74 $53.81 $55.96 4 1 1/2-inch $95.99 $99.83 $103.82 $107.97 $112.29
5 2-inch $122.67 $127.58 $132.68 $137.99 $143.51
6 3-inch $201.66 $209.73 $218.12 $226.84 $235.91
7 4-inch $266.97 $277.65 $288.76 $300.31 $312.32
8 6-inch $438.72 $456.27 $474.52 $493.50 $513.24
4 The Board of Commissioners may elect to implement a rate less than that noticed, if deemed financially prudent.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 7 Table 1-6 shows the proposed monthly Commercial Service Charges for the study period. Commercial customers are billed monthly. All rates are shown to the nearest penny.
Table 1-6: Proposed Commercial Monthly Service Charges
A B C D E F G
Line Meter Size FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 5/8-inch $50.70 $52.73 $54.84 $57.03 $59.31
2 1-inch $84.50 $87.88 $91.40 $95.06 $98.86
3 1-inch (required for fire code) $52.81 $54.92 $57.12 $59.40 $61.78 4 1 1/2-inch $103.90 $108.06 $112.38 $116.88 $121.56
5 2-inch $130.57 $135.79 $141.22 $146.87 $152.74
6 3-inch $209.56 $217.94 $226.66 $235.73 $245.16
7 4-inch $274.92 $285.92 $297.36 $309.25 $321.62
8 6-inch $446.63 $464.50 $483.08 $502.40 $522.50
Table 1-7 shows the proposed monthly Fire Service Charges for the study period for those connections to the system that have dedicated private firelines for private fire suppression systems. All rates are shown to the nearest penny.
Table 1-7: Proposed Monthly Fire Service Charges
A B C D E F G
Line Fireline Size FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 1-inch $5.04 $5.24 $5.45 $5.67 $5.90
2 2-inch $10.24 $10.65 $11.08 $11.52 $11.98
3 4-inch $10.24 $10.65 $11.08 $11.52 $11.98
4 6-inch $15.39 $16.01 $16.65 $17.32 $18.01
5 8-inch $20.54 $21.36 $22.21 $23.10 $24.02
6 10-inch $25.69 $26.72 $27.79 $28.90 $30.06
Table 1-8 shows the proposed Usage Fees. The proposed Usage Fees for FY 2024 (the rate-setting year) result from applying the recommended FY 2024 increase to the existing rates. Rates for all years beyond FY 2024 are adjusted based on the proposed maximum 4% annual revenue adjustment. Residential rates are billed bi-monthly but stated here on a monthly basis and Commercial tiers are monthly. All rates are shown to the nearest penny.
Table 1-8: Proposed Usage Fees
A B C D E F G H I
Line Class Residential
Tiers (ccf)
Commercial
Tiers (ccf) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
1 Residential
2 Tier 1 0-4 $0.00 $0.00 $0.00 $0.00 $0.00
3 Tier 2 5-12 $3.10 $3.22 $3.35 $3.48 $3.62
4 Tier 3 13-20 $4.65 $4.84 $5.03 $5.23 $5.44
5 Tier 4 21-30 $6.10 $6.34 $6.59 $6.85 $7.12
6 Tier 5 31-50 $8.08 $8.40 $8.74 $9.09 $9.45
7 Tier 6 50+ $14.37 $14.94 $15.54 $16.16 $16.81
8 9 Commercial
10 Tier 1 0-4 $0.00 $0.00 $0.00 $0.00 $0.00
11 Tier 2 5+ $3.66 $3.81 $3.96 $4.12 $4.28
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 8 Customer Impacts
Figure 1-1 and Figure 1-2 show the monthly customer bill impacts for Residential customers with a 5/8-inch and a 1-inch meter, respectively, based on FY 2023 customer data provided by the DWP’s staff. Of the DWP’s approximately 15,900 Residential customers, more than 97% are serviced by a 5/8 or 1-inch meter. All customers will experience uniform bill impacts of a maximum 4% at all volumes of water use. The most common bill, a 5/8 inch meter at 4 ccf per month, will experience an increase of $1.65 per month.
Figure 1-1: Residential Monthly Bill Impacts for a 5/8-inch Meter Figure 1-2: Residential Monthly Bill Impacts for a 1-inch Meter City of Big Bear Lake Department of Water and Power – Water Rate Study Report 9 Figure 1-3 and Figure 1-4 show the monthly bill impacts for Commercial customers with a 5/8-inch and 1-inch meter, respectively. Of the DWP’s 1,011 Commercial customers, approximately 75% are serviced by a 5/8-inch or 1-inch meter.
All customers will experience a maximum 4% increase, regardless of volume of water use.
Figure 1-3: Commercial Monthly Bill Impacts for a 5/8-inch Meter Figure 1-4: Commercial Monthly Bill Impacts for a 1-inch Meter City of Big Bear Lake Department of Water and Power – Water Rate Study Report 10
2. Background
Agency Background
The City provides potable water to customers in the Bear Valley of the San Bernadino Mountains through its DWP. The DWP provides potable water service to approximately 15,900 Residential and Commercial connections within approximately 11 square miles (7,033 acres) of residential, and commercial lands. The DWP’s mission is to cost effectively deliver quality water to meet the needs of its current and future customers. The DWP Board of Commissioners guides policy decisions for the City’s DWP. The City’s water is supplied primarily through traditional electric groundwater wells that pump water from the Bear Valley Groundwater Basin. In addition, the DWP has also developed a set of gravity (or slant) wells within the groundwater basin that provide additional water supply. The DWP plans to improve its groundwater replenishment through a Joint Powers Authority (JPA) known as Replenish Big Bear, set to begin in FY 2027. The City of Big Bear Lake was incorporated in 1980 and became a charter city in 1983. The DWP was formed in 1989 with the purchase of the retail water system from Southern California Water Company. The DWP provides water service to Residential and Commercial customers in the Bear Valley of the San Bernadino Mountains. The DWP serves the area which includes the City of Big Bear Lake and the unincorporated communities of Fawnskin, Erwin Lake, Lake William, Sugarloaf, and Moonridge. The DWP serves approximately 15,900 customers, the majority of whom are Residential customers. The DWP is organized and operated pursuant to the California Water Code and is governed by a five-member Board of Commissioners (Board).
Study Background
The Study encompasses a nine-year financial planning period from fiscal year (FY) 2023 to FY 2032 and five years of proposed rates, for implementation beginning July 2023 and each July thereafter through FY 2028. For the purposes of this Study, FY 2023 is the fiscal year beginning on July 1, 2022 and ending on June 30, 2023. HDR Engineering (HDR) conducted the last Water Rate Study in 2017, which resulted in adopted rates implemented July 2018. The 2022 Study financial plan incorporates updated assumptions and projections based on the most recent financial information and customer data available. The Study assumes FY 2023 water demand of approximately 836,000 hundred cubic feet (ccf) per year, with no anticipated changes to this baseline demand during the Study planning horizon. New water connections are projected at 0.3% annually, or about 50 new connections per year.
The DWP engaged Raftelis in 2022 to complete a Study. The Study consists of developing the DWP’s long-range financial plan and calculating water rates for a five year study period.
Raftelis collaborated closely with the DWP’s staff and Board of Commissioners to derive rates that meet the DWP’s policy objectives. The main objectives that informed the study include: » Adequately recovering all cost requirements to maintain the DWP’s financial sufficiency » Evaluating the financial impacts of, and incorporating the costs for, the future Replenish Big Bear water supply augmentation project » Minimizing rate impacts to customers » Maintaining the existing rate structure City of Big Bear Lake Department of Water and Power – Water Rate Study Report 11
3. Key Inputs and Assumptions
Key Information Used in this Study
Raftelis developed a financial planning tool in Microsoft Excel to project financial calculations over the next 10 fiscal years. Projections in future years are generally made based on actual or estimated data for FY 2022 and the adopted budget for FY 2023 using key assumptions outlined below. Assumptions were discussed with, and reviewed by, the DWP’s staff to ensure that the water system's local and unique characteristics are accurately accounted for.
The Study relies on the following critical information provided by the DWP’s staff:
1. FY 2022 Actual Revenues and Expenses
2. FY 2023 Adopted Budgeted Revenues and Expenses
3. FY 2022 water use and customer account data (billing data detail)
4. Water source of supply production and cost estimates
5. FY 2022 beginning cash fund balances
6. The adopted ten-year CIP (including the DWP’s planned CIP expenditures for Replenish Big Bear, beginning in FY 2027)
7. Existing debt service coverage covenants
8. Adopted cash reserve policies
Current Rates
Current rates were developed with the 2017 the DWP Adopted Water Rate Study (report dated January 2018). The DWP’s water rates were last increased in July 2022. The existing rate structure consists of two components: a fixed Service Charge by meter size and variable Usage Fees per hundred cubic feet (ccf5) of water use.
Monthly/Bi-Monthly Service Charges
These Service Charges, by meter size, typically recover the costs of customer service and billing, meter servicing and maintenance, meter reading, and a share of extra-capacity costs. The DWP’s Service Charges also include the costs of four ccf of water per month of water use.
5 One ccf of water is equal to 748 gallons.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 12 Table 3-1 shows the DWP's current monthly Service Charges by meter size for all customers.6 Table 3-1: FY 2023 Service Charges ($/Month)
A B C D
Line Monthly Meter Charge Residential Commercial
1 5/8-inch $41.15 $48.75
2 1-inch $73.65 $81.25
3 1-inch (required for fire code) $46.00 $50.78
4 1 1/2-inch $92.30 $99.90
5 2-inch $117.95 $125.55
6 3-inch $193.90 $201.50
7 4-inch $256.70 $264.35
8 6-inch $421.85 $429.45
Water Usage Fees
Also called commodity charges, or water use rates, these Usage Fees are distinguished by class and tier and typically recover the costs of water supply, average day demand delivery, and extra-capacity (among others). The DWP has two classes of customers: Single Family Residential (SFR) and Commercial (Commercial being all classes not SFR). Both classes have a tiered rate structure, with SFR having six tiers and Commercial two. Residential rates are billed bi-monthly but stated here on a monthly basis and Commercial tiers are monthly. Tiered Usage Fees are per ccf of water use.
Table 3-2 shows the DWP's Usage Fees for FY 2023, based on customer class and tier.
Table 3-2: FY 2023 Usage Fees ($/ccf)
A B C D E
Line Customer Class/Tier Residential Tier
Widths
Commercial Tier
Widths
Usage Fee
($/ccf)
1 Residential
2 Tier 1 0-4 $0.00
3 Tier 2 5-12 $2.98
4 Tier 3 13-20 $4.47
5 Tier 4 21-30 $5.87
6 Tier 5 31-50 $7.77
7 Tier 6 50+ $13.82
8 9 Commercial
10 Tier 1 0-4 $0.00
11 Tier 2 5+ $3.52
6 Note that while the table shows Residential charges in monthly terms, in practice, the DWP charges its Residential customers bi-monthly, with charges double those shown on a monthly basis.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 13 Inflationary Factors
Inflationary assumptions are shown in Table 3-3. As part of the Study, Raftelis and the DWP’s staff determined the most appropriate annual escalation factors for the financial plan based on the best available information at the time of the study. Each individual expense within the operating budget is assigned the most applicable inflationary factor. For example, the general inflation factor reflects the long-term average Consumer Price Index (CPI); the capital inflation factor represents the long-term average increase in the Engineering News-Record (ENR) Construction Cost Index (CCI); salaries and benefits inflationary estimates are specific to the DWP’s labor environment. Additionally, higher inflation is assumed in the early years of the study based on current conditions. The long-range plan assumes a gradual return to a normal inflationary environment.
Table 3-3: Inflationary Assumptions
Line Category FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Revenue Inflation Budgeted Projected Projected Projected Projected Projected 2 Miscellaneous Revenues N/A 6% 4% 3% 3% 3%
3 Other Operating Revenues N/A 1% 1% 1% 1% 1%
4 Reserve Interest Rate N/A 1% 1% 1% 1% 1%
5 6 Expense Inflation
7 General N/A 6% 4% 3% 3% 3%
8 Salary N/A 5% 4% 4% 4% 4%
9 Benefits N/A 7% 7% 7% 7% 7%
10 Water Supply N/A 5% 5% 5% 5% 5%
11 Energy N/A 4% 4% 4% 4% 4%
12 Capital N/A 5% 4% 3% 3% 3%
13 Other Operating Revenues N/A 1% 1% 1% 1% 1%
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 14 Projected Connection Growth and Water Demand
Table 3-4 shows the estimated new connection growth rate and water sales for the Study period. Account Growth (new connections) is set at 0.3% per year based on past and planned development and corresponds to approximately 50 new connections per year. The Water Demand Factor represents projected per capita (or per connection) demands, relative to prior year. The DWP anticipates constant per capita water demand over the planning horizon. The changes to total annual water use reflect additional demands from new connections only.
Table 3-4: Projected Water Connection Growth and Water Demand
A B C D E F G H I J K L M
Actual Budgeted Projected Projected Projected Projected Projected Projected Projected Projected Projected Line Water Use FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 1 Account Growth7
(units/year) 50 50 50 50 50 50 50 50 50 50
2 Water Demand Factor 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 3 4 All Accounts 15,870 15,920 15,970 16,020 16,070 16,120 16,170 16,220 16,270 16,320 16,370 5 Water Use (ccf) 833,462 835,134 836,810 838,492 840,178 841,870 843,567 845,268 846,975 848,687 850,405 7 Account growth is applied only to Residential 1-inch with fire for the purposes of this study. The values shown above represent 50 units per year of additional Residential 1-inch with fire accounts.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 15 Table 3-5 shows the projected number of water connections, by meter size and fiscal year. The number of connections is escalated each year based on the new connection assumptions identified in Table 3-4. Table 3-5: Projected Water Connections by Meter Size
A B C D E F G H I J K L M
Line Meter Size FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 1 5/8'' 14,924 14,924 14,924 14,924 14,924 14,924 14,924 14,924 14,924 14,924 14,924 2 1'' 185 185 185 185 185 185 185 185 185 185 185
3 1'' (w/fire) 435 485 535 585 635 685 735 785 835 885 935 4 1.5'' 98 98 98 98 98 98 98 98 98 98 98
5 2'' 139 139 139 139 139 139 139 139 139 139 139
6 3'' 1 1 1 1 1 1 1 1 1 1 1
7 4'' 44 44 44 44 44 44 44 44 44 44 44
8 6'' 31 31 31 31 31 31 31 31 31 31 31
9 8'' 10 10 10 10 10 10 10 10 10 10 10
10 10'' 3 3 3 3 3 3 3 3 3 3 3
11 12'' 0 0 0 0 0 0 0 0 0 0 0
12 Total 15,870 15,920 15,970 16,020 16,070 16,120 16,170 16,220 16,270 16,320 16,370 City of Big Bear Lake Department of Water and Power – Water Rate Study Report 16 Table 3-6 shows the projected water use by customer class, tier, and fiscal year. Future water demand projections change based on the Water Demand Factor and Account Growth assumptions identified in Table 3-4. Table 3-6: Projected Water Demand by Customer Class
A B C D E F G H I J K L M
Line Description FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 1 Residential 557,171 558,843 560,519 562,201 563,887 565,579 567,276 568,977 570,684 572,396 574,114 2 Commercial 276,291 277,120 277,951 278,785 279,621 280,460 281,302 282,146 282,992 283,841 284,693 3 Total Use (ccf) 833,462 835,134 836,810 838,492 840,178 841,870 843,567 845,268 846,975 848,687 850,405 City of Big Bear Lake Department of Water and Power – Water Rate Study Report 17
4.Financial Plan
This section details the projections of operating and capital expenses, as well as reserve and debt service coverage requirements, that determine the overall revenue adjustments required to ensure the financial stability of the DWP’s water utility. Revenue adjustments represent the gross increase in total rate revenues and can be considered the average rate increase for the DWP customers. Numbers shown in the tables of this section are rounded. Therefore, hand calculations based on the displayed numbers, such as summing or multiplying, may not equal the exact results shown in this report. Factors Affecting Revenue Adjustments The following items affect the DWP’s revenue requirement and thus its water rates: operating and maintenance (O&M) expenses, CIP, debt service, and reserve funding. 1. Inflation: Recent inflationary pressure has been higher than experienced in the past 40 years. Utilities have experienced this pressure in everything from chemical costs to capital costs to labor and supplies. Even in a normal inflationary environment, costs increase at an average rate of approximately 3 percent per year. Therefore, an annual rate increase of 3 percent per year could be perceived as an inflationary pass-through.
2. Capital Funding: The DWP has programmed approximately $3.2 million in annual CIP over the next ten years This represents an additional $600k per year beyond a seven-year historical spend of $2.6 million per year, per the prior rate study. 3. Replenish Big Bear: The project represents a new cost center to the DWP. While it will be partially paid through growth, the DWP will incur new O&M expenses that need to be accounted for in the long-range financial plan.
4. Prudent Reserves: The DWP has reserve policies for the water utility to meet working capital needs, ensure adequate funding of the capital repair and replacement (R&R) program, mitigate risk from asset failure during an emergency, and to protect ratepayers from rate spikes. The financial plan ensures that the DWP can sustainably achieve these adopted reserve levels. In addition, the DWP will begin funding its share of the Replenish Big Bear project, set to begin construction and implementation in FY 2027. DWP Revenues Table 4-1 shows the rate revenue and non-rate revenues. Rate revenues consist of Service Charges (which vary by meter size) and variable Usage Fees for water use (which vary by class and tier). Monthly service charges are shown in Table 3-1. The tiered Usage Fees for Residential and Commercial customers are shown in Table 3-2. The volumetric component of a customer's water bill is calculated based on the number of units of water delivered to a property, measured in one hundred cubic feet (ccf), multiplied by the Usage Fees that vary by customer class and tier. Projected water use is shown in Table 3-4. The current tier widths and rates are shown in Table 3-2. The rates, multiplied by the amount of use in each respective tier, determine the volumetric component of a customer's bill, subject to the Usage Fees. The utility also derives revenues from other non-rate sources. These revenues consist of other operating, miscellaneous, and non-operating revenues and are summarized in Lines 8 – 10.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 18 Table 4-1: Projected Water Revenues
A B C D E F G H I
Line Expenses FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Rate Revenues
2 Fixed Revenues (Service Charges) $8,042,802 $8,229,877 $8,257,477 $8,285,077 $8,312,677 $8,340,277 $8,367,877 3 Variable Revenues (Usage Fees) $1,652,082 $1,688,370 $1,690,871 $1,693,380 $1,695,896 $1,698,420 $1,700,951 4 Total Rate Revenue $9,694,884 $9,918,247 $9,948,348 $9,978,457 $10,008,573 $10,038,697 $10,068,828 5 6 Non-Rate Revenues
7 Capacity Charges $1,965,989 $719,355 $553,350 $575,484 $592,749 $610,531 $628,847 8 Miscellaneous Revenue $279,146 $393,590 $371,890 $386,766 $398,369 $410,320 $422,629 9 Interest Income $20,712 $97,318 $77,343 $65,233 $53,306 $43,414 $38,630 10 Total Operating Revenues $11,960,731 $11,128,512 $10,950,940 $11,005,958 $11,053,027 $11,103,008 $11,158,999 City of Big Bear Lake Department of Water and Power – Water Rate Study Report 19 DWP Operating Expenses
Operating and Maintenance (O&M) Expenses
Table 4-2 summarizes budgeted and projected O&M expenses for the water system. O&M expenses include the costs of operating and maintaining the water production, transmission, storage, and distribution facilities, as well as the costs of providing technical services (e.g., laboratory, customer service, and billing cost). The water utility’s FY 2023 operating budget is the basis for FY 2024 projections. As part of the Study, Raftelis and the DWP’s staff determined the most appropriate annual escalation factors for the financial plan based on the best available information at the time of the study. Each individual expense within the operating budget is assigned the most applicable inflationary factor. For example, the general inflation factor reflects the long-term average Consumer Price Index (CPI); the capital inflation factor represents the long-term average increase in the Engineering News-Record (ENR) Construction Cost Index (CCI); salaries and benefits inflationary estimates are specific to the DWP’s labor environment. Additionally, higher inflation is assumed in the early years of the study based on current conditions. The long-range plan assumes a gradual return to a normal inflationary environment.
Inflationary assumptions from Table 3-3 are applied to year FY 2024 O&M and beyond to project future years. O&M cost increases in FY 2023 relative to FY 2022 are predominantly due to non-recurring, and one-time study costs. Future Replenish Big Bear costs are not shown in the table to better compare existing costs to future projections of the same expenditures. Replenish Big Bear costs are, however, included in total future operating costs and the DWP’s long-term expenditures and are documented in the proposed financial plan Pro Forma.
Table 4-2: Projected O&M Expenses
A B C D E F G H
Line Expenses FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 General $0 $0 $0 $0 $0 $0
2 Water Production $1,353,965 $1,410,817 $1,474,997 $1,540,007 $1,608,131 $1,679,533 3 Conservation/Communications $345,679 $366,620 $384,807 $402,942 $422,038 $442,150 4 Transmission/Distribution $1,115,291 $1,160,028 $1,217,227 $1,274,849 $1,335,510 $1,399,388 5 Water Operations $1,005,390 $949,674 $995,252 $1,038,815 $1,084,567 $1,132,632 6 Customer Field Services (Meters) $953,302 $912,731 $959,195 $1,007,684 $1,058,843 $1,112,831 7 Customer Service $1,268,603 $1,331,792 $1,396,640 $1,461,922 $1,530,598 $1,602,863 8 Administration $1,840,028 $1,965,256 $2,056,693 $2,142,733 $2,232,896 $2,327,408 9 Replenish Big Bear $0 $0 $0 $0 $0 $0
10 Total O&M $7,882,257 $8,096,916 $8,484,812 $8,868,951 $9,272,584 $9,696,805 City of Big Bear Lake Department of Water and Power – Water Rate Study Report 20 DWP Capital Improvement Program
Table 4-3 shows the CIP detailed by project and year. The DWP’s 10-year CIP aims to increase annual spending from a historical annual value of approximately $2.6 million to a projected annual spend of approximately $3.2 million. Based on the proposed financial plan, it is projected that the DWP will be able to execute approximately 85% of annual capital with cash each year. The remaining 15% of annual CIP expenses will be funded if grants and/or low-interest financing opportunities are available. All values are shown in FY 2023 dollar amounts (i.e., non-inflated).
Table 4-3: Water Utility Capital Improvement Program
A B C D E F G H
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Budgeted Projected Projected Projected Projected Projected 1 Infrastructure Spending $2,745,605 $2,883,170 $2,233,565 $2,727,091 $2,273,403 $2,264,186 2 Equipment $37,128 $95,498 $65,450 $80,682 $57,188 $94,070 3 IT $0 $0 $0 $127,500 $0 $0
4 Site Improvements $552,500 $127,500 $276,250 $276,250 $0 $0 5 Total $3,335,233 $3,106,168 $2,575,265 $3,211,523 $2,330,591 $2,358,255 DWP Debt Service
The DWP has debt service from several borrowings issued to fund various CIP projects. Table 4-4 shows the annual debt service payment for the Study planning period.
Table 4-4: Water Debt Service
A B C D E F G H
Line Description FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 Principal $562,466 $575,604 $586,885 $600,309 $612,754 $626,427 2 Interest $538,855 $526,871 $514,583 $502,013 $489,157 $476,004 3 Annual Fee $2,783 $2,704 $2,622 $2,539 $2,453 $2,364
4 Total $1,104,104 $1,105,179 $1,104,090 $1,104,861 $1,104,364 $1,104,795 City of Big Bear Lake Department of Water and Power – Water Rate Study Report 21 DWP Reserve Funding
Table 4-5 illustrates the DWP’s reserve policies and corresponding reserve targets. The current reserve targets were adopted in 2018 and consist of three components:
an operating reserve to provide working capital for routine expenses and cashflow; a capital reserve to provide funds for CIP; and a debt service reserve to ensure debt coverage requirements are met during the study period. The debt service reserve represents restricted reserves and are therefore, not included in the unrestricted/available reserves relative to target.
The defined reserve policy is 25% of average annual operating expenses for the DWP’s operating reserve, 100% of five-year average CIP costs for its capital reserve, and one year of debt service for its debt service reserve. The total target reserve level in the current fiscal year (FY 2023) is approximately $5 million. This target value will change over time as operating costs change due to cost structure and inflation; and as the timing and the magnitude of the CIP changes. The FY 2023 actual beginning balance for the water utility’s unrestricted funds was $11 million. Unrestricted reserves increased from 2018 through 2022 because the DWP secured $13.8 million in low-interest loans and $3.6 million in grants in support of infrastructure improvements and regulatory compliance. The DWP’s current CIP strategically draws down the excess reserves over the next six years for infrastructure improvements.
Table 4-5: Reserve Targets
Line Reserve Policy Target Reserve
FY 2024
1 Operating 25% of annual operating expenses $2,024,229 2 Capital 100% of five-year average CIP costs $2,716,360 3 Debt Service 1-year of debt service costs $1,105,180
4 Total Unrestricted Reserves
(Operating + Capital)
$4,740,590
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 22 Financial Plan Revenue Adjustments
Table 4-6 displays the proposed revenue adjustments for the recommended financial plan. The financial plan shows projected revenue adjustments for FY 2024 through FY 2032; however, the proposed rate adoption period is for five years. The current financial plan shows modest revenue adjustments are required to adequately fund all current and projected O&M expenses, debt coverage requirements, and achieve reserve policy targets. The proposed CIP may or may not be able to be executed at 100% each year, depending on actual construction cost inflation and the availability of grants and/or low-interest borrowing opportunities. The 4% per year rate revenue adjustments represent maximums for the Board’s consideration each year. If financially prudent, rate increases of less than 4% may be implemented at the Board’s discretion.
Table 4-6: Proposed Five-Year Rate Revenue Adjustments8 A B C
Line Fiscal Year Proposed Revenue Adjustment
1 FY 2024 4%
2 FY 2025 4%
3 FY 2026 4%
4 FY 2027 4%
5 FY 2028 4%
8 The adjustments beyond FY 2028 are for planning purposes only.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 23 Table 4-7 shows the proforma for the water utility from FY 2023 through FY 2028 (year five of proposed rates) inclusive of the revenue adjustments shown in Table 4-6. Table 4-7: Proposed Financial Plan Proforma FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Beginning Balance $11,031,178 $9,200,394 $8,191,394 $7,797,530 $6,535,299 $6,245,521 Sources of Funds
Revenues from Existing Rates $9,918,247 $9,948,348 $9,978,457 $10,008,573 $10,038,697 $10,068,828 Total Revenue Adjustments $0 $397,934 $814,242 $1,249,710 $1,705,159 $2,181,441 Miscellaneous Revenue $393,590 $371,890 $386,766 $398,369 $410,320 $422,629 Interest Revenue $97,318 $77,343 $65,233 $53,306 $43,414 $38,630 Debt Proceeds $0 $0 $0 $0 $0 $0
Growth Related
Capacity Fee Revenues $719,355 $553,350 $575,484 $592,749 $610,531 $628,847 Total Sources of Funds $11,128,512 $11,348,874 $11,820,200 $12,302,738 $12,808,167 $13,340,440 Uses of Funds
O&M $7,882,257 $8,096,916 $8,484,812 $8,868,951 $9,272,584 $9,696,805 Revenue Funded CIP $3,923,803 $3,106,168 $2,575,265 $3,211,523 $2,330,591 $2,358,255 Existing Debt $1,104,104 $1,105,180 $1,104,090 $1,104,861 $1,104,363 $1,104,795 Proposed Debt $0 $0 $0 $0 $0 $0
Growth-Related
Replenish Big Bear $0 $0 $0 $329,412 $339,953 $350,832
Growth Related Debt Service $48,701 $48,793 $48,751 $48,811 $48,853 $48,878 Total Uses of Funds $12,958,864 $12,357,057 $12,212,918 $13,563,558 $13,096,344 $13,559,565 Ending Balance $9,200,826 $8,192,642 $7,799,953 $6,539,194 $6,251,111 $6,032,118 Net Cash Change ($1,830,352) ($1,008,183) ($392,689) ($1,260,759) ($288,082) ($218,993) Calculated Debt Coverage 219% 234% 239% 218% 224% 231%
Minimum Debt Coverage 120% 120% 120% 120% 120% 120%
Target Balance (Unrestricted) $5,000,034 $4,740,590 $4,771,511 $4,861,571 $4,827,868 $4,941,574 Operating Reserve Target $1,970,564 $2,024,229 $2,121,203 $2,217,238 $2,318,146 $2,424,201 Capital Facilities Reserve Target $3,029,470 $2,716,360 $2,650,309 $2,644,333 $2,509,722 $2,517,373 Restricted Reserve $1,104,104 $1,105,180 $1,104,090 $1,104,861 $1,104,363 $1,104,795 City of Big Bear Lake Department of Water and Power – Water Rate Study Report 24 Figure 4-1 shows model projected and target (minimum) debt service coverage ratio over the planning period. Calculated debt coverage (dark grey line) remains well above the debt coverage minimum (light grey line) in all years. This provides capacity to take on additional, low-interest borrowings in the future if opportunities exist. This graph includes the annual maximum rate revenue increases of 4% beginning in FY 2024. Figure 4-1: Proposed Revenue Adjustments and Debt Coverage City of Big Bear Lake Department of Water and Power – Water Rate Study Report 25 Figure 4-2 illustrates the operating financial plan. The stacked bars indicate expenses and net cashflow for the water utility. Projected current versus proposed revenues are represented by the black and grey lines (respectively). Green bars represent operating expenses, yellow bars represent existing debt service, teal bars represent rate-funded (cash funded) capital, and light blue bars represent use of, or contributions to, reserves. Rate-funded CIP values have been reduced to 85% of those shown above in Table 4-3 on page 22. Should grants or low-interest borrowings become available, the DWP will be able to execute 100% of planned capital.
Figure 4-2: Operating Financial Plan
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 26 Figure 4-3 graphically shows projected fiscal year end reserve balances (dark blue bars) relative to targeted reserve balances (gray line) in each of the planning years. Ending reserve balances through the study period remain above the target balances. Figure 4-3: Estimated Ending Reserve Balances City of Big Bear Lake Department of Water and Power – Water Rate Study Report 27 Figure 4-4 illustrates the planned CIP expenses. Currently, the DWP does not plan to issue new debt during the study period and will therefore fund as much CIP as allowed with rate revenues. The values shown below represent a capital accomplishment rate of 85% of programmed CIP. Unrestricted reserves increased from 2018 through 2022 because the DWP secured $13.8 million in low-interest loans and $3.6 million in grants in support of infrastructure improvements and regulatory compliance. The DWP’s current CIP strategically draws down the excess reserves over the next six years for infrastructure improvements.
Figure 4-4: Capital Program and Financing Plan
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 28
5. Proposed Rates
This section calculates the proposed rates based on the financial plan results in the previous section. The proposed maximum 4% revenue adjustment is applied across-the-board to the existing rates and rate structure. The first year of rates is proposed for implementation FY 2024 (July 2023). All rates show the maximum 4% increase in each year.
Service Charges
The DWP will maintain the current schedule of Service Charges by meter size for both Residential and Commercial customers. Table 5-1 and Table 5-2 shows the proposed schedule of rates for Residential and Commercial customers respectively for the study period. The charges incorporate annual rate increases of a maximum of 4% across all customer classes for each year, beginning in FY 2024. All rates are rounded to the nearest whole penny.
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 29 Table 5-1: Five-Year Proposed Residential Service Charges
A B C D E F G
Line Meter Size FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 5/8-inch $42.80 $44.51 $46.29 $48.14 $50.07
2 1-inch $76.60 $79.66 $82.85 $86.16 $89.61
3 1-inch (required for fire code) $47.84 $49.75 $51.74 $53.81 $55.96 4 1 1/2-inch $95.99 $99.83 $103.82 $107.97 $112.29
5 2-inch $122.67 $127.58 $132.68 $137.99 $143.51
6 3-inch $201.66 $209.73 $218.12 $226.84 $235.91
7 4-inch $266.97 $277.65 $288.76 $300.31 $312.32
8 6-inch $438.72 $456.27 $474.52 $493.50 $513.24
Table 5-2: Five-Year Proposed Commercial Service Charges
A B C D E F G
Line Meter Size FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 5/8-inch $50.70 $52.73 $54.84 $57.03 $59.31
2 1-inch $84.50 $87.88 $91.40 $95.06 $98.86
3 1-inch (required for fire code) $52.81 $54.92 $57.12 $59.40 $61.78 4 1 1/2-inch $103.90 $108.06 $112.38 $116.88 $121.56
5 2-inch $130.57 $135.79 $141.22 $146.87 $152.74
6 3-inch $209.56 $217.94 $226.66 $235.73 $245.16
7 4-inch $274.92 $285.92 $297.36 $309.25 $321.62
8 6-inch $446.63 $464.50 $483.08 $502.40 $522.50
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 30 Table 5-3 shows the proposed Fire Service Charges for the study period for those connections to the system that have dedicated private firelines for private fire suppression systems. All rates are shown to the nearest penny.
Table 5-3: Five Year Proposed Fire Service Charges
A B C D E F G
Line Fireline Size FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 1 1-inch $5.04 $5.24 $5.45 $5.67 $5.90
2 2-inch $10.24 $10.65 $11.08 $11.52 $11.98
3 4-inch $10.24 $10.65 $11.08 $11.52 $11.98
4 6-inch $15.39 $16.01 $16.65 $17.32 $18.01
5 8-inch $20.54 $21.36 $22.21 $23.10 $24.02
6 10-inch $25.69 $26.72 $27.79 $28.90 $30.06
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 31 Usage Fees
The DWP will maintain the current structure and schedule of Usage Fees by class and tier for Residential and Commercial customers. Table 5-4 shows the five-year Usage Fees by customer class and tier. The charges incorporate annual rate increases of a maximum of 4% across all rates, beginning in FY 2024. All rates are shown in dollars per ccf of water consumed ($/ccf). Residential rates are billed bi-monthly but stated here on a monthly basis and Commercial tiers are monthly. All rates are rounded to the nearest whole penny.
Table 5-4: Proposed Usage Fees ($/ccf)
A B C D E F G H I
Line Commodity Rates
($/ccf)
Residential
Tiers (ccf)
Commercial
Tiers (ccf) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
1 Residential
2 Tier 1 0-4 $0.00 $0.00 $0.00 $0.00 $0.00
3 Tier 2 5-12 $3.10 $3.22 $3.35 $3.48 $3.62
4 Tier 3 13-20 $4.65 $4.84 $5.03 $5.23 $5.44
5 Tier 4 21-30 $6.10 $6.34 $6.59 $6.85 $7.12
6 Tier 5 31-50 $8.08 $8.40 $8.74 $9.09 $9.45
7 Tier 6 50+ $14.37 $14.94 $15.54 $16.16 $16.81
8 9 Commercial
10 Tier 1 0-4 $0.00 $0.00 $0.00 $0.00 $0.00
11 Tier 2 4+ $3.66 $3.81 $3.96 $4.12 $4.28
City of Big Bear Lake Department of Water and Power – Water Rate Study Report 32
6.Bill Impacts
Customer Impacts
Figure 6-1 shows the monthly bill impact for a Residential customer with a 5/8" meter at various volumes of water use. Of the DWP’s 15,900 Residential customers, 94% are serviced by a 5/8" meter. The chart shows the impact between current FY 2023 charges and the proposed FY 2024 charges shown in the previous section of this Report.
The proposed charges incorporate the proposed maximum 4% revenue adjustment. At all volumes of water use, the impact to the customer is a maximum of 4%. While the figures shown below are listed in monthly terms, in practice, the DWP bills Residential customers on a bi-monthly basis, twice the amounts shown in Figure 6-1. As a result, the true bill impacts (in $) would be double the dollar amounts listed in line 3 of Figure 6-1. Figure 6-1: Residential Customer Bill Impacts (FY 2023 vs. Proposed FY 2024) City of Big Bear Lake Department of Water and Power – Water Rate Study Report 33 Figure 6-2 and Figure 6-3 show the monthly bill impacts for Commercial customers with a 5/8" and 1” meter (respectively) at various volumes of water use. The chart shows the impact between current FY 2023 charges and the proposed FY 2024 charges shown in the previous section of this Report. The proposed charges incorporate the proposed maximum 4% revenue adjustment. A Commercial customer with a 5/8" meter using 40 ccf per month (the class average) would experience a $7.02 increase in their monthly bill. A Commercial customer with a 1” meter using 40 ccf per month would experience a $8.32 increase.
Figure 6-2: Commercial Bill Impacts for a 5/8-inch Meter (FY 2023 vs. Proposed FY 2024) Figure 6-3: Commercial Bill Impacts for a 1-inch Meter (FY 2023 vs. Proposed FY 2024) City of Big Bear Lake Department of Water and Power – Water Rate Study Report 34
7. Water Rate Survey
Raftelis and the DWP staff conducted a rate survey to benchmark current and proposed water rates against neighboring or similar water service providers. While a useful benchmark, it is worth noting that such comparisons only paint a partial picture since many factors, such as water sources, age and replacement of infrastructure, service area characteristics, revenue sources, and other local conditions affect the total cost of providing water service.
Figure 7-1 shows a water bill comparison for the current (FY 2023) and adopted (FY 2024) rates. The survey assumes a SFR customer using the average volume of use within each of the agencies’ service areas listed.
Figure 7-1: Water Bill Comparison
MEETING
DATE: May 10, 2023
TO: Honorable Mayor and Members of the City Council
THROUGH: Erik Sund, City Manager
FROM: Erica Stephenson, City Clerk/Director of Human Resources Rebecca Cannon, Deputy City Clerk
SUBJECT: Authorizing Letters of Support and/or Opposition for Legislative Items
BACKGROUND
The Mayor and the City Manager attended the League of California Cities (Cal Cities) Desert Mountain Division meeting on April 21, 2023. At this meeting, Cal Cities provided a presentation on legislative platforms and presented a number of bills and hearings that cities should take note of and take a position on.
DISCUSSION
Opposition for Initiative No. 21-0042A1 – The Taxpayer Protection and Government Accountability Act
In response to the proposed Initiative, Cal Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates and businesses strongly oppose this initiative. As stated in Cal Cities summary, Initiative No. 21-0042A1 limits voters' authority, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold violators of state and local laws accountable. This measure would create several consequences for local governments and local voters, including, but not limited to the following:
• Limits voter input by prohibiting voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures; • Establishes new standards for fees and charges paid for the use of local and state government property, which may significantly restrict the amount oil, gas, trash collection, and cable companies pay for the use of local public property; • Restricts the authority of state and local governments to issue fines and penalties for violations of laws; and
• Restricts local tax authority to provide local services by requiring voter approval to expand existing taxes (e.g. Utility User Tax, Use Tax, Transient Occupancy Tax) to new territory (e.g. annexation) or expanding the base (e.g. new utility service) and requiring that new taxes can be imposed only for a specific period of time.
Item 2.3
If passed, Initiative No. 21-0042A1 has the potential to jeopardize vital local and state services by risking billions of dollars currently dedicated to critical state and local services and potentially forcing cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more. It also has the potential to reduce funding for critical infrastructure like streets, roads, public transportation, drinking water, new schools, sanitation, and utilities. As a result, Cal Cities is requesting cities to oppose the Taxpayer Protection and Government Accountability Act .
Opposition for SB 423 (Weiner) – Streamlines Housing Approvals: Multifamily Housing Developments: SB 35 (Chapter 366, Statutes of 2017) Expansion In 2017, the Legislature passed, and the Governor signed SB 35. This law makes the approval of multifamily developments, many of which meet inadequate criteria, “ministerial” actions. As a result, the approval of these developments pre-empts local discretionary land use authority, bypasses the California Environmental Quality Act (CEQA), and ignores public input.
What does SB 423 specifically do:
• Removes the 2026 sunset and makes SB 35 statutes permanent. • Applies SB 35 provision to cities that have not been found in substantial compliance with housing element law by the department.
• Applies SB 35 provisions to developments in the Coastal Zone. • Allows the state to approve housing developments on property they own or lease without being required to follow local zoning and development standards. • Prohibits a city from enforcing its inclusionary housing ordinance if the income limits are higher than those in SB 35.
Opposition for Application No. 22-08-010, Bear Valley Electric Service Inc. Request to Increase Rates in its 2023 General Rate Case
Bear Valley Electric Service, Inc. submitted its General Rate Case Application 22-08-010 and associated prepared testimony and documents on August 30, 2022. In its Application, BVES seeks, among other things, authority for BVES to increase general rates, energy supply charges and certain other charges; authority to implement additional programs and capital improvements; approval of an appropriate overall rate of return, return on common equity, cost of debt and capital structure; authority to recover, implement, modify or eliminate, as the case may be, certain revenue adjustment mechanisms or memorandum and balancing accounts; and approval of certain previously incurred costs, as set forth in the Application and associated direct testimony and documents.
Support of Fentanyl and Substance Use Related Legislation Communities throughout California are struggling with a quickly evolving opioid crisis, which is now being driven by the increase in synthetic opioid-related deaths — primarily fentanyl According to the Centers for Disease Control and Prevention, 71,000 people died from synthetic opioid-related overdose in the United States in 2021, of which, 7,000 deaths occurred in California.
In other words, 1 out of every 10 deaths from synthetic opioids in the United States occurs in California.
It is critical that the State advance legislative measures that would help stem the tide of illicit substance-related deaths in California and bring relief to the many communities mourning tragic, preventable deaths.
Support Western Joshua Tree Conservation Act Budget Trailer Bill – SUPPORT IF
AMENDED
A petition to list the Western Joshua tree (WJT) as a California endangered species was submitted to the Fish and Game Commission in 2019. Since that time, a broad debate has been underway between environmental advocates, local governments, and other key stakeholders on the merit of listing the WJT. The Fish and Game Commission is still considering whether to list the species due, in part, to concerns about the administrative burden an endangered listing would place on the California Department of Fish and Wildlife (CDFW), forcing the department to oversee an extensive permitting process for a species whose population numbers in the millions. Such a massive permitting and conservation program has never been attempted in state history.
The Western Joshua Tree Conservation Act has been proposed by CDFW as an alternative to listing the species. This bill, if enacted, would greatly expand active protections for the WJT while still allowing development to proceed under a mitigation fee program and other significant restrictions.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ENVIRONMENTAL CONSIDERATIONS
None requiring review under the California Environmental Quality Act.
RECOMMENDATION
It is recommended that City Council take a position of Opposition for Initiative No. 21-0042A1 – The Taxpayer Protection and Government Accountability Act., SB 423 (Weiner) – Streamlines Housing Approvals: Multifamily Housing Developments, Application No. 22-08-010 and Bear Valley Electric Service Inc., Request to Increase Rates in its 2023 General Rate Case.
It is recommended that City Council take a position of Support for Fentanyl and Substance Use Related Legislation and Western Joshua Tree Conservation Act Budget Trailer Bill – SUPPORT IF AMENDED.
ATTACHMENTS
1. The Taxpayer Protection and Government Accountability Act Initiative 21-0042A1
2. Letter Opposing Initiative 21-0042A1
3. Action Alert – Oppose SB 423
4. Letter Opposing SB 423 Streamlined Housing Approvals
5. 2023 General Rate Case Amendment and Supplement to Application of Bear Valley Electric Service, Inc.
6. Action Alert – Fentanyl Crisis Legislation
7. Letter of Support – Fentanyl and Substance Use Related Legislation
8. Letter of Support – Western Joshua Tree Conservation Act Budget Trailer Bill
9. San Bernardino County Letter of Support – Western Joshua Tree Conservation Act Budget Trailer Bill
ATTACHMENT 1
The Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A11
Feb. 1, 2023
Effective date: Any new or increased tax or fee adopted by the Legislature, a city council, or the local voters after January 1, 2022, must comply with the Act’s new rules.
Voters
• Local advisory measures are prohibited. No measure may appear on the ballot asking for approval of a general tax that would allow the voters to express a preference for how the revenue from the general tax will, could, or should be used.
• Overturns Upland decision which upheld a special tax that had been placed on the ballot by the voters to be approved by a majority vote. Taxes proposed by initiative will be subject to the same rules as taxes placed on the ballot by a city council.
• Voters may not amend a city charter to impose, extend, or increase a tax or fee.
Local taxes
• Requires voter approval in order to apply an existing tax:
o to territory that is annexed.
o to a new service or product, for example when a utility user tax is applied to a new service.
• All new or increased taxes adopted after Jan. 1, 2022, must include a sunset date.
State taxes
• All new or increased state taxes require statewide voter approval. • Prohibits a property tax “surcharge” (increase). Prohibits any allocation of property tax to the state.
1 This is a summary of some of the more significant provisions of the Act. Please review the Act for a complete understanding of the changes it makes to the Constitution.
Fees and charges
• Fees and charges for services and permits may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” Examples include planning services, excavation and encroachment permits, preparation of candidate statement, and permit parking.
• State and cities have the burden of proving by “clear and convincing evidence” that a fee/charge is not a tax, that the amount is reasonable, and that it does not exceed “actual cost.”
• Franchise fees — historically considered fees, not taxes — will more likely be considered taxes due to the elimination of an existing category of “fee” and the requirement that charges to entrance, purchase, rental, or lease of government property be “reasonable.” The state and cities issue franchises to oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations.
• No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.
Fines and penalties (administrative enforcement of state law and municipal codes)
• May require voter approval of fines and penalties for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties. Examples include nuisance abatement, organic waste reduction requirements, and failure to maintain a vacant property.
CaliforniaCityFinance.Com
Fiscal and Program Effects of
Initiative 21-0042A1 on Local Governments
If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in:
Over $20 billion of local government fee and charge revenues over 10 years placed at heightened legal peril. Related public service reductions across virtually every aspect of city, county, special district, and school services especially for drinking water, sewer sanitation, and public health and safety. About $2 billion of revenues each year from fees and charges adopted after January 1, 2021 subject to legal peril.
1 Over $2 billion dollars of annual revenues from dozens of tax measures approved by voters between January 1, 2022 and the effective date of the act2 subject to additional voter approval if not in compliance with the initiative.
Indeterminable legal and administrative burdens and costs on local government from new and more empowered legal challenges, and bureaucratic cost tracking requirements. The delay and deterrence of municipal annexations.
Substantially higher legal and administrative cost of public infrastructure financing which will delay and deter new residential and commercial development.
Service and infrastructure declines including in fire and emergency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services.
1. Local Government Taxes and Services Threatened
With regard to taxes, Initiative 21-0042A1:
Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot. o Voters may be less informed and more likely to vote against measures. Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter approval (Upland).3
o Because the case law regarding citizen initiative special taxes approved by majority vote (Upland) is so recent, it is unknown how common these sorts of measures might be in the future. This initiative would prohibit such measures after the effective date of the initiative. Any such measures adopted after January 1, 2022 through the effective date of the Act should it pass would be void a year after the effective date of the initiative. Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to require that all tax increases or extensions contain a sunset (end date). o This would require additional tax measures to extend previously approved taxes. A city charter may not be amended to impose, extend, or increase a tax might interfere with the ability of cities that do not already have such authority in their charters to adopt Property Transfer Taxes. o There are no more than a few of these every few years, but it is a valuable tax for those that adopt it.
1 Assumes fee increases since January 1, 2022 would be subject to possible legal challenge if not adopted in compliance with the Initiative.
2 The effective date of the initiative would be sometime in December 2024, the date the California Secretary of State certifies the election results of the November 5, 2024 election.
3 Unlike the initiative 17-0050, this initiative does not eliminate that ability of cities and counties to adopt general taxes by majority voter approval.
2217 Isle Royale Lane • Davis, CA • 95616-6616
Phone: 530.758.3952 • Fax: 530.758.3952
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Requires that a tax measure adopted after January 1, 2022 and before the effective date of the initiative that was not adopted in accordance with the measure be readopted in compliance with the measure or will be void twelve months after the effective date of the initiative. o If past election patterns and elections in 2022 are an indication, over 200 tax measures approving more than $2 billion annual revenues to support local public services would not be in compliance and would be subject to reenactment. Most will be taxes without a specific end date and special taxes (including parcel taxes). Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, the measures would each require declaration of emergency and unanimous vote of the governing board to be placed on a special election ballot within a year for approval or the tax will be void after that date. I would expect most to succeed, but some will not, in particular citizen initiative majority vote special taxes which would have to meet a higher voter approval threshold to continue. Requires voter approval to expand an existing tax to new territory (annexations). This would require additional tax measures and would deter annexations and land development in cities. o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12 months later until brought into compliance. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, such extensions would each require unanimous vote of the agency board to be placed on a special election ballot or would be void a year later.
1.a. Number of Measures and Value of Local Taxes at Risk4 Over a hundred local measures were approved in 2022 that likely do not comply with the provisions of Initiative 21-0042A1. Nearly $2 billion of annual revenues from these voter approved measures will cease a year after the effective date of the measure, reducing the local public services funded by these measures. We can expect a similar volume of measures in 2024 and a similar volume of non-compliance. So the combined total of annual local funding directly affected by Initiative 21-0042A1 due to its retroactivity provision is about $4 billion.
Citizen Initiative Special Taxes in 2022.
Special taxes placed on the ballot by citizen initiative and approved after January 1, 2022 by a majority but less than two-thirds of the voters are out of compliance with Initiative 21-0042A1.
On June 7, 2022, there were three local special tax measures placed on the ballot by citizen initiative. Two failed to get majority voter approval. A one percent transactions and use tax (sales tax) for the John C. Fremont Healthcare District in Mariposa County received 69.6 percent approval, over the two thirds needed for any special tax under California Constitution Article XIIIC. So this measure was passed in compliance with Initiative 21- 0042A1.
On November 8, 2022, there were 14 local special taxes placed on the ballot by citizen initiative. Seven of these 4 Source: Compilation and summary of data from County elections offices.
June 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
John C. Fremont
Healthcare District Mariposa Measure N Transactions & Use Tax 1 cent $ 150,000 hospital 40yrs 69.6% PASS County of Kings Kings Measure F Transactions
& Use Tax 1/2 cent $ 11,700,000 fire none 37.6% FAIL
Manhattan Beach
USD Los Angeles Measure A School Parcel Tax $1095/yr $ 12,000,000 schools 12yrs 31.2% FAIL
CaliforniaCityFinance.com
measures failed with less than majority voter approval. The other seven measures received majority, but less than two-thirds, voter approval. These measures passed under current law but are out of compliance with Initiative 21- 0042A1. Taken together these seven taxes will provide estimated annual revenues of from $900,000 to $1.4 billion in support of parks and recreation, zoo, library, affordable housing, transportation, homelessness prevention, and schools in these communities.
Non-Specific Tax Durations in 2022
Voters approved 106 measures in June 2022 (10) and November 2022 (96) that do not provide a specific duration of time that the tax will be imposed (end date). Typically, the ballot titles for these measures state that the tax would be imposed “until ended by voters.” Four of these measures also did not include any estimate of the annual revenues that the tax would generate, another violation of initiative 21-0042A1. Taken together, these approved local measures generate $561 million per year that will expire a year after the effective date of the initiative if Initiative 21-0042A1 passes.
November 2022 Initiative Special Taxes - majority voter approval Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
Crockett Community
Services District Contra Costa Measure L Parcel Tax $50/parcel $ 60,000 parks/recr none 62.8% PASS Oakland Alameda Measure Y Parcel Tax $68/parcel $ 12,000,000 zoo 20yrs 62.5% PASS County of Mendocino Measure O Transactions
& Use Tax
1/8 cent then 1/4
cent in 2027 $ 4,000,000 library none 60.8% PASS
Los Angeles Los Angeles Measure ULA Property
Transfer Tax
4% if >$5m, 5.5%
if >$10m $600 m to $1.1 b affordable housing none 57.3% PASS County of Sacramento Measure A Transactions
& Use Tax same 1/2 cent $ 212,512,500 transportati
on
40yrs 55.3% PASS
San Francisco Proposition M Business
Operations Tax
$2500-$5000/
vacant resid unit $ 20,000,000 housing 30yrs 54.5% PASS Santa Monica Los Angeles Measure GS Property
Transfer Tax
$56/$1000 if
>$8m $ 50,000,000
schools,
homelessne
ss, afford.
housing
none 53.3% PASS
Total $900,000 to
$1.4 billion
Agency Name County Tax/Fee Rate
Estimated
Annual Revenue Use Sunset YES%
County of Calaveras Measure A Transactions
& Use Tax 1 cent $ 5,000,000 fire none 49.4% FAIL
South San Francisco
(for Schools) San Mateo Measure DD School Parcel Tax $2.50/sf $ 55,900,000 schools none 47.2% FAIL County of Fresno (for CSU ) Measure E Transactions
& Use Tax
1/5 ct,
1/40 ct (Reedley) $ 36,000,000 Calif State Univ 20yrs 46.9% FAIL Santa Cruz Santa Cruz Measure N Parcel Tax $6k/vacant SFU xxx vacant property
xxx 44.2% FAIL
County of Monterey Measure Q Parcel Tax $49/parcel $ 5,500,000 childcare 10yrs 41.1% FAIL San Francisco City
College
San
Francisco Measure O School Parcel Tax $150/sfu $ 37,000,000 schools 10yrs 36.7% FAIL Morro Bay San Luis
Obispo Measure B Parcel Tax $120+/parcel $ 680,000 harbor none 36.0% FAIL Inverness Public
Utility District Marin Measure O Parcel Tax $0.20/sf, $150/vacant $ 276,000 fire none 27.0% FAIL
CaliforniaCityFinance.com
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Oakland Alameda Measure T Business Tax
General various $ 20,900,000 none 71.4% PASS
Culver City Los Angeles Measure BL Business Tax
General various $ 10,000,000 none 60.5% PASS
El Segundo Los Angeles Measure BT Business Tax
General various $ 3,000,000 none 51.2% PASS
Pico Rivera Los Angeles Measure AB Business Tax
General various $ 5,800,000 none 75.5% PASS
Santa Ana Orange Measure W Business Tax
General various neutral none 64.8% PASS
Tracy San Joaquin Measure B Business Tax
General various $ 3,200,000 none 72.6% PASS
Burlingame San Mateo Measure X Business Tax
General various $ 2,500,000 none 75.1% PASS
Los Gatos Santa Clara Measure J Business Tax
General various $ 1,100,000 none 53.4% PASS
Santa Clara Santa Clara Measure H Business Tax
General
$45/employee,
$15/rental unit $ 6,000,000 none 59.5% PASS
Brisbane San Mateo Measure O Business Tax
lodging busn $2.50/rm/day $ 250,000 none 69.2% PASS
East Palo Alto San Mateo Measure L Business Tax
resid. rentals
2.5%
grossRcpts $ 1,480,000 none 69.9% PASS
County of Santa Cruz Unincorporated Measure C Busn Tax - disp cups 12.5cents/cup $ 700,000 none 68.2% PASS
South Lake Tahoe El Dorado Measure G Busn Tax
Cannabis
6% retail,
manufacturing $ 950,000 none 62.9% PASS
McFarland Kern Measure O Busn Tax
Cannabis
8% of gross
receipts retail, $ 1,800,000 none 63.5% PASS
Avenal Kings Measure C Busn Tax
Cannabis
$25+/sf or
15% gr rcpts $ 600,000 none 61.8% PASS
Baldwin Park Los Angeles Measure CB Busn Tax
Cannabis
4%
grossRcpts $ 300,000 none 51.3% PASS
Claremont Los Angeles Measure CT Busn Tax
Cannabis
4%-7% gr
rcpts, $1- $ 500,000 none 61.1% PASS
County of Los Angeles Unincorporated Measure C Busn Tax Cannabis
4% gross
receipts retail, $ 15,170,000 none 60.1% PASS
Cudahy Los Angeles Measure BA Busn Tax
Cannabis
15%
grossRcpts $ 3,600,000 none 54.0% PASS
El Segundo Los Angeles Measure Y Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 72.8% PASS
Hermosa Beach Los Angeles Measure T Busn Tax
Cannabis
10%
GrossRcpt, $ 1,500,000 none 67.6% PASS
Lynwood Los Angeles Measure TR Busn Tax
Cannabis 5%to10% $ 3,000,000 none 66.4% PASS
Santa Monica Los Angeles Measure HM Busn Tax
Cannabis
10% gross
Rcpts $ 5,000,000 none 66.4% PASS
South El Monte Los Angeles Measure CM Busn Tax
Cannabis
6% special
excise tax on $ 126,000 none 53.7% PASS
Monterey Monterey Measure J Busn Tax
Cannabis 6% grossRcpt $ 1,300,000 none 65.2% PASS
Pacific Grove Monterey Measure N Busn Tax
Cannabis 6% grossRcpt $ 300,000 none 70.8% PASS
Huntington Beach Orange Measure O Busn Tax
Cannabis
6% retail, 1%
other $ 600,000 none 54.7% PASS
CaliforniaCityFinance.com
Notes
?= Ballot measure title did not include an estimate of annual revenues, also not in compliance with Initiative 21-0042A1. n/a*= Arcadia Measure SW passed but sports betting remains illegal after the failure of Propositions 26 and 27 on the November statewide ballot.
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Laguna Woods Orange Measure T Busn Tax
Cannabis
4%-10% of
gross receipts $ 750,000 none 61.1% PASS
Corona Riverside Measure G Busn Tax
Cannabis
9% of gross
receipts for $ 5,000,000 none 61.6% PASS
Montclair San Bernardino Measure R Busn Tax
Cannabis
7%
grossRcpts $ 3,500,000 none 70.3% PASS
County of San Diego Unincorporated Measure A Busn Tax
Cannabis
6% retail, 3%
distribution, $ 5,600,000 none 57.4% PASS
Encinitas San Diego Measure L Busn Tax
Cannabis
4% to 7% of
gross receipts $ 1,400,000 none 65.1% PASS
Healdsburg Sonoma Measure M Busn Tax
Cannabis 8% grossRcpt $ 500,000 none 72.7% PASS
Exeter Tulare Measure B Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 66.5% PASS
Tulare Tulare Measure Y Busn Tax
Cannabis
10% retail and
other, $10/sf ? none 65.2% PASS
Woodland Yolo Measure K Busn Tax
Cannabis
10%
grossRcpts
? none 66.2% PASS
Redlands San Bernardino Measure J Busn Tax
Distrib centers
from $0.047/sf
to $0.105/sf $ 530,000 none 53.5% PASS
Arcadia Los Angeles Measure SW Busn Tax
Sports Betting
5%
grossRcpts
n/a* none 63.9% PASS
Albany Alameda Measure K ParcelTax $0.074+/sf $ 1,950,000 fire/EMS none 76.0% PASS Cameron Park Airport
District El Dorado Measure J ParcelTax by $600 to $900/parcel $ 117,900 airport/ streets none 78.2% PASS Highlands Village
Lighting Benefit Zone El Dorado Measure L ParcelTax $140+/parcel $ 10,920 streets none 86.3% PASS Knolls Property
Owners CSD El Dorado Measure P ParcelTax by $300+ to $600+/parcel $ 8,400 streets none 75.5% PASS Sundance Trail Zone of
Benefit El Dorado Measure C ParcelTax $600+/yr $ 24,000 roads none 73.2% PASS South Pasadena Los Angeles Measure LL ParcelTax xxx ? library none 86.2% PASS River Delta Fire District Sacramento Measure H ParcelTax $90/yr $ 130,000 fire none 72.1% PASS Emeryville Alameda Measure O PropTransfTax $15/$1000 if $1m-$2m, $ 5,000,000 none 71.6% PASS
San Mateo San Mateo Measure CC PropTransfTax by 1% to 1.5% if >$10m $ 4,800,000 none 71.8% PASS
Alameda Alameda Measure F TOT by 4% to 14% $ 910,000 none 59.2% PASS Clovis Fresno Measure B TOT by 2% to 12% $ 500,000 none 69.7% PASS Kerman Fresno Measure G TOT 10% $ 40,000 none 62.3% PASS Trinidad Humboldt Measure P TOT by 4% to 12% $ 65,000 none 77.6% PASS Imperial Imperial Measure G TOT by 4% to 12% $ 600,000 none 56.2% PASS Arcadia Los Angeles Measure HT TOT by 2% to 12% $ 730,000 none 54.1% PASS Santa Monica Los Angeles Measure CS TOT by 1%, 3%
home shares $ 4,100,000 none 73.7% PASS
CaliforniaCityFinance.com
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Anaheim Orange Measure J TOT online travel
companies $ 3,000,000 none 59.2% PASS
La Palma Orange Measure P TOT by 4% to 12% $ 200,000 none 71.1% PASS Colfax Placer Measure B TOT by 2% to10% $ 29,000 none 73.5% PASS Rocklin Placer Measure F TOT by 2% to 10% $ 300,000 none 59.8% PASS Roseville Placer Measure C TOT by 4% to 10% $ 3,000,000 none 73.0% PASS Big Bear Lake San Bernardino Measure P TOT by 2% to 10% $ 1,300,000 none 54.4% PASS Grand Terrace San Bernardino Measure M TOT new 10% $ 250,000 none 51.9% PASS Yucca Valley San Bernardino Measure K TOT by 5% to 12% $ 1,300,000 none 71.9% PASS Imperial Beach San Diego Measure R TOT by 4% to 14% $ 400,000 none 67.4% PASS El Paso de Robles San Luis ObispoMeasure F TOT by 1% to 11% $ 750,000 none 61.2% PASS Belmont San Mateo Measure K TOT by 2% to 14% $ 600,000 none 79.3% PASS Millbrae San Mateo Measure N TOT by 2% to 14% $ 1,500,000 none 75.8% PASS County of Humboldt Unincorporated Measure J TOT by 2% to 12% $ 3,080,000 none 63.3% PASS County of Placer -
North Tahoe TOT Area Measure A TOT by 2% to 10% $ 4,000,000 none 90.0% PASS County of Santa Cruz Unincorporated Measure B TOT by 1% to 12% $ 2,300,000 none 69.2% PASS County of El Dorado -
East Slope Tahoe Measure S TOT 2/3 by 4% to 14% $ 2,500,000 none 81.8% PASS Chico Butte Measure H TrUT 1 cent $ 24,000,000 none 52.4% PASS Mendota Fresno Measure H TrUT 1.25 cent $ 493,498 none 57.2% PASS Blue Lake Humboldt Measure R TrUT 1 cent $ 30,000 none 55.4% PASS Rio Dell Humboldt Measure O TrUT 3/4cent $ 400,000 none 53.3% PASS County of Kern unincorporated areas Measure K TrUT 1 cent $ 54,000,000 none 50.8% PASS McFarland Kern Measure M TrUT 1 cent $ 579,662 none 62.2% PASS Tehachapi Kern Measure S TrUT 1 cent $ 4,000,000 none 57.2% PASS Avenal Kings Measure A TrUT 1 cent $ 500,000 none 72.5% PASS Susanville Lassen Measure P TrUT 1 cent $ 1,750,000 none 54.7% PASS Baldwin Park Los Angeles Measure BP TrUT 3/4 cent $ 6,000,000 none 58.1% PASS Malibu Los Angeles Measure MC TrUT 1/2 cent $ 3,000,000 none 52.6% PASS Monterey Park Los Angeles Measure MP TrUT 3/4 cent $ 6,000,000 none 58.5% PASS Torrance Los Angeles Measure SST TrUT 1/2 cent $ 18,000,000 none 55.0% PASS Larkspur Marin Measure G TrUT 1/4 cent $ 700,000 none 59.4% PASS Sand City Monterey Measure L TrUT by 1/2cent to
1.5cents $ 1,400,000 none 68.7% PASS
Hemet Riverside Measure H TrUT same 1 cent $ 15,000,000 none 58.0% PASS Elk Grove Sacramento Measure E TrUT 1 cent $ 21,000,000 none 54.1% PASS Galt Sacramento Measure Q TrUT 1 cent $ 3,600,000 none 52.4% PASS Colton San Bernardino Measure S TrUT 1 cent $ 9,500,000 none 66.8% PASS Ontario San Bernardino Measure Q TrUT 1 cent $ 95,000,000 none 53.2% PASS Solana Beach San Diego Measure S TrUT 1 cent $ 3,000,000 none 66.7% PASS Brisbane San Mateo Measure U TrUT 1/2 cent $ 2,000,000 none 63.9% PASS Goleta Santa Barbara Measure B TrUT 1 cent $ 10,600,000 none 64.7% PASS Solvang Santa Barbara Measure U TrUT 1 cent $ 1,600,000 none 63.1% PASS
CaliforniaCityFinance.com
Co-temporal Advisory Measures in 2022
At the November 2022 election, there was just one local general tax measure that was accompanied by an advisory measure as to the use of funds. The City of Santa Monica’s Measure DT property transfer tax failed with just 34 percent approval as voters instead chose the citizen initiative Measure GS.
There was also just one such tax use advisory measure on the June 2022 election. Susanville’s voters passed Measure P, a 1 percent transactions and use (sales) tax that generates $1.75 million per year5 for general city services. The measure was accompanied by advisory Measure Q, accompanied the city’s It asked, “If Measure P passes, should the revenues be used to balance the budget to maintain and enhance existing public safety services (police and fire), and provide funding to support street infrastructure improvements and provide funding to support economic development efforts designed to increase businesses, jobs and visitors to Susanville?” Both measures passed. Under Initiative 21-0042A1, the tax will expire a year after the effective date of the initiative (i.e., in December 2025).
1.b. Additional Costs and Public Service Effects of the Tax Provisions Assuming a similar volume of local measures through 2024 as we saw in 2022, there will be over 200 local measures that will need to be redrafted to comply with the Initiative and placed back on the ballot for the taxes to continue after December 2025. The costs of re-drafting, re-placing and re-voting on these measures, previously legally approved by voters, will be in the tens of millions in total statewide.
2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1:
Subjects new fees and charges for a product or service to a new "actual and reasonable test." Subjects fees and charges for entrance to local government property; and rental and sale of local government property to a new, undefined, “reasonable” test. Allows legal challenge to any tax adopted before the effective date of the initiative and after January 1, 5 The Susanville measure also did not include a specific end date and so is included in the list and totals of those measures.
Measures in 2022 with Non-Specific Durations
Agency Name County Tax/Fee Rate
Annual
Revenue Use Sunset YES%
Watsonville Santa Cruz Measure R TrUT 1/2 cent $ 5,000,000 none 64.4% PASS Vallejo Solano Measure P TrUT 7/8 cent $ 18,000,000 none 54.7% PASS Modesto Stanislaus Measure H TrUT 1 cent $ 39,000,000 none 62.8% PASS County of Colusa Measure A TrUT 2/3 1/2 cent $ 2,400,000 EMS none 69.4% PASS Atwater Merced Measure B TrUT 2/3 same 1 cent $ 4,000,000 police/fire none 73.7% PASS Truckee Nevada Measure U TrUT 2/3 by 1/4 cent to
1/2 cent $ 3,000,000 open space / trails none 76.4% PASS Palo Alto Santa Clara Measure L UtilityTransfer 18% gas $ 7,000,000 none 77.7% PASS Santa Clara Santa Clara Measure G UtilityTransfer 5 % $ 30,000,000 none 84.2% PASS Hercules Contra Costa Measure N UUT 8% $ 3,600,000 none 69.3% PASS Carson Los Angeles Measure UU UUT 2% electr, gas $ 8,000,000 none 78.4% PASS Sebastopol Sonoma Measure N UUT 3.75% (same) $ 700,000 none 83.5% PASS
CaliforniaCityFinance.com
2022. Such a lawsuit could enjoin (stop) the enactment of the tax pending the outcome of the legal challenge.
Subjects a challenged fee to new, higher burdens of proof if legally challenged.
2.a. Value on New Local Government Fees and Charges at Risk6 Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local government fee and charge revenue placed at risk is about $2 billion per year including those adopted since January 1, 2022. Of $2 billion, about $900 million (45 percent) is for special districts, $800 million (40 percent) is cities, and $300 million (15 percent) is counties.7 Major examples of affected fees and charges are:
1. Certain water, sanitary sewer, wastewater, garbage, electric, gas service fees.
2. Nuisance abatement charges - such as for weed, rubbish and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs.
3. Emergency response fees - such as in connection with DUI.
4. Advanced Life Support (ALS) transport charges.
5. Business improvement district charges.
6. Fees for processing of land use and development applications such as plan check fees, use permits, design review, environmental assessment, plan amendment, subdivision map changes.
7. Document processing and duplication fees.
8. Facility use charges, parking fees, tolls.
9. Fines, penalties.
10. Fees for parks and recreation services.
2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure financing more difficult and will deter new residential and commercial development. ***********
6 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts, summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually. 7 School fees are also affected but the amount is negligible by comparison.
ATTACHMENT 2
SAMPLE OPPOSE LETTER
Email a copy to [email protected] as well as your Regional Public Affairs Manager.
***CITY LETTERHEAD***
DATE
Bismarck Obando
Director of Public Affairs, League of California Cities 1400 K Street, Suite 400
Sacramento, CA 95814
RE: Letter Opposing Initiative 21-0042A1
On DATE, the City/Town of __________ voted to oppose Initiative 21-0042A1, a deceptive, developer-sponsored proposition aimed for the November 2024 statewide ballot that would significantly jeopardize cities’ ability to provide essential services and infrastructure for our residents.
The measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and projects and would limit voter input by prohibiting local advisory measures where voters can express a preference on how they want their local tax dollars spent.
This measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including impacts on local infrastructure and our environment.
This measure also may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods.
Unless defeated, the measure puts billions of dollars currently dedicated to local services at risk, and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more.
PLEASE CITE SPECIFIC IMPACTS TO YOUR CITY THAT WOULD RESULT FROM THIS INITIATIVE.
The measure benefits wealthy corporations and real estate developers while decimating our local communities and neighborhoods.
You may list the City/Town of _____________in formal opposition to Initiative #21-0042A1 and include our city as part of the growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state opposed to this deceptive proposition.
Sincerely,
NAME
TITLE
CITY/TOWN of ______________
ATTACHMENT 3
ACTION ALERT
OPPOSE SB 423 (Wiener)
Streamlined housing approvals: multifamily housing developments:
SB 35 (Chapter 366, Statutes of 2017) expansion.
Background: In 2017, the Legislature passed, and the Governor signed SB 35. This law makes the approval of multifamily developments, many of which meet inadequate criteria, “ministerial” actions. As a result, the approval of these developments pre-empts local discretionary land use authority, bypasses the California Environmental Quality Act (CEQA), and ignores public input.
What does SB 423 specifically do?
• Removes the 2026 sunset and makes SB 35 statutes permanent. • Applies SB 35 provision to cities that have not been found in substantial compliance with housing element law by the department.
• Applies SB 35 provisions to developments in the Coastal Zone.
SB 423 would greatly expand SB 35 (Chapter 366, Statutes of 2017) provisions and eliminate the Jan. 1, 2026 sunset date, permanently requiring cities to ministerially approve certain housing projects without public input or environmental review.
SB 423 will be heard in the Senate Committee on Housing on March 21. Voice your opposition TODAY by submitting a letter to the Senate Committee on Housing and your legislator. If your Senator is on the committee, it is important for you to submit a letter and call them to express your opposition.
Members of the Senate Committee on Housing:
Senator Scott Wiener (Chair) — (916) 651-4011
Senator Rosilicie Ochoa Bogh (Vice Chair) — (916) 651-4023 Senator Catherine Blakespear — (916) 651-4038
Senator Anna Caballero — (916) 651-4014
Senator Dave Cortese — (916) 651-4015
Senator Mike McGuire — (916) 651-4002
Senator Steve Padilla — (916) 651-4018
Senator Kelly Seyarto — (916) 651-4032
Senator Nancy Skinner — (916) 651-4009
Senator Thomas Umberg — (916) 651-4034
Senator Aisha Wahab — (916) 651-4410
ACTION
• Allows the state to approve housing developments on property they own or lease without being required to follow local zoning and development standards. • Prohibits a city from enforcing its inclusionary housing ordinance if the income limits are higher than those in SB 35.
Talking points:
• City officials intimately understand the housing crisis as it plays out in their communities every day. Local leaders are working to find creative solutions so homes of all income levels can be built.
• Cities are finalizing local housing plans that will identify sites for more than 2.5 million new homes statewide, all while navigating the state’s annual barrage of overreaching housing bills that have thus far demonstrated limited success. • SB 423 is the latest overreaching bill, and would force cities to approve certain housing projects without regard to the needs of the community, opportunities for environmental review, or public input.
• Instead of continuing to pursue top-down, one-size-fits-all legislation, lawmakers should partner with local officials.
• That’s why YOUR CITY NAME is calling on the Governor and lawmakers to include a $3 billion annual investment in the state budget to help cities prevent and reduce homelessness and spur housing development.
• Targeted, ongoing funding is the only way cities can find community-based solutions that get our residents off the streets and keep them in their homes. • California will never produce the number of homes needed with an increasingly state driven, by-right housing approval process.
• Join me and oppose SB 423 (Wiener).
ATTACHMENT 4
Please also email a copy to your legislator(s) and [email protected] as well as your Regional Public Affairs Manager.
***CITY LETTERHEAD***
DATE
The Honorable Scott Wiener
Chair, Senate Committee on Housing
1021 O Street, Suite 3330
Sacramento, CA 95814
RE: SB 423 (Wiener) Streamlined housing approvals: multifamily housing developments: SB 35 (Chapter 366, Statutes of 2017) Expansion.
Notice of Opposition
Dear Senator Wiener:
The Your City/Town writes to express our opposition to your measure, SB 423, which would greatly expand SB 35 (Chapter 366, Statutes of 2017) provisions and eliminate the Jan. 1, 2026 sunset date.
On any given day, newspaper headlines in California and across the nation are highlighting the state’s growing housing supply and affordability crisis. Seven in ten Californians view housing affordability as one of the top problems in their community, and there is growing concern from residents that housing prices are so expensive, younger generations will be priced out of ever being able to buy a home.
Your City/Town intimately understands this crisis as it plays out in our community every day. Local leaders are working to find creative solutions so homes of all income levels can be built. They’re taking on these difficult and complex tasks, and in many cases successfully planning for more than 2.5 million new homes statewide, all while navigating the state’s annual barrage of overreaching housing bills that have thus far demonstrated limited success.
SB 423 is the latest overreaching bill. This measure would double-down on the recent trend of the state overriding its own mandated local housing plans by forcing cities to approve certain housing projects without regard to the needs of the community, opportunities for environmental review, or public input. While it may be frustrating for some developers to address neighborhood concerns about traffic, parking, and other development impacts, those directly affected by such projects have a right to be heard. Public engagement also often leads to better projects. Not having such outlets will increase public distrust in government and result in additional ballot measures limiting housing development.
[If you have specific examples of the impact of this bill on your city/town, please include here.]
Instead of continuing to pursue top-down, one-size-fits-all legislation, lawmakers should partner with local officials. That’s why the League of California Cities is calling on the Governor and lawmakers to include a $3 billion annual investment in the state budget to help cities prevent and reduce homelessness and spur housing development.
Targeted, ongoing funding is the only way cities can find community-based solutions that get our residents off the streets and keep them in their homes. California will never produce the number of homes needed with an increasingly state driven, by-right housing approval process. What is really needed is a sustainable state investment that matches the scale of this long-term crisis.
For these reasons, Your City/Town respectfully opposes your measure, Sincerely,
NAME
TITLE
CITY/TOWN of ______________
Cc: Your Senator(s) and Assembly Member(s)
Your Cal Cities Regional Public Affairs Manager (via email) League of California Cities (Via email: [email protected]) ATTACHMENT 5
BEFORE THE CALIFORNIA PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
Application of Bear Valley Electric Service, Inc.
(U 913 E) for Authority to, Among Other Things,
Increase Rates and Charges, and Authorized
Revenues, for Electric Service Effective January 1,
2023
Application No. 22-08-010
(Filed August 30, 2022)
2023 GENERAL RATE CASE AMENDMENT AND SUPPLEMENT
TO APPLICATION
OF BEAR VALLEY ELECTRIC SERVICE, INC. (U 913-E)
Sean Matlock
Energy Resources Manager
Bear Valley Electric Service, Inc.
42020 Garstin Drive
P.O. Box 1547
Big Bear Lake, California 92315
Telephone: (909) 866-4678
Facsimile: (909) 866-5056
E-mail: [email protected]
October 11, 2022
TABLE OF CONTENTS
Page
i
A. INTRODUCTION ............................................................................................................. 1 B. SUMMARY OF VOLUME 7 TESTIMONY.................................................................... 2 C. PROTEST PERIOD END DATE ...................................................................................... 3 D. CONCLUSION .................................................................................................................. 3 1 BEFORE THE CALIFORNIA PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA
Application of Bear Valley Electric Service, Inc.
(U 913 E) for Authority to, Among Other
Things, Increase Rates and Charges, and
Authorized Revenues, for Electric Service
Effective January 1, 2023
Application No. 22-08-010
(Filed August 30, 2022)
2023 GENERAL RATE CASE AMENDMENT AND SUPPLEMENT
TO APPLICATION
OF BEAR VALLEY ELECTRIC SERVICE, INC. (U 913-E)
A. INTRODUCTION
Bear Valley Electric Service, Inc. (“BVES” or “Bear Valley”) submitted its General Rate Case (“GRC”) Application 22-08-010 (“Application” or “GRC Application”) and associated prepared testimony and documents on August 30, 2022. In its Application, BVES seeks, among other things, authority for BVES to increase general rates, energy supply charges and certain other charges; authority to implement additional programs and capital improvements; approval of an appropriate overall rate of return, return on common equity, cost of debt and capital structure; authority to recover, implement, modify or eliminate, as the case may be, certain revenue adjustment mechanisms or memorandum and balancing accounts; and approval of certain previously incurred costs, as set forth in the Application and associated direct testimony and documents.
In its Application, BVES indicated that it would subsequently supplement its Application with a proposed cost allocation and rate design.1
This two-step application process was used in
BVES’s last two general rate case applications in 2013 and 2017, and was confirmed again in
1 Application at p. 2.
2 Ordering Paragraph 15 in D.19-08-027. In accordance with its Application, and as previously authorized as noted above, BVES hereby submits its Amendment and Supplement to Application for Authority to, Among Other Things, Increase Rates and Charges, and Authorized Revenues, for Electric Service Effective January 1, 2023.
B. SUMMARY OF VOLUME 7 TESTIMONY
The purpose of the Supplement and Volume 7, Cost Allocation and Rate Design, is to provide BVES’s marginal cost analysis, proposed revenue allocation, and proposed rates to recover its overall revenue requirement sought in its GRC Application.
Section I provides an introduction to the testimony which includes: (a) a description of the current rate classes; (b) development of the Marginal Cost of Service (“MCS”) study; and (c) development of the proposed revenue targets, rate design, and bill impact analyses for each rate class. This Section also provides the qualifications of the cost allocation and rate design witness, Timothy S. Lyons, a Partner at ScottMadden, Inc.
Section II provides a summary of the findings and recommendations.
Section III provides an overview of BVES, including the characteristics of BVES’s rate classes.
Section IV provides the process and results of BVES’s MCS study. The MCS study develops marginal customer, energy, and demand costs for each rate class and rate schedule. The MCS study shows the revenues that would be generated by directly charging marginal customer, energy, and demand rates based upon BVES’s forecast of customers and sales.
Section V discusses the revenue allocation and rate design. Revenue allocation is the process of determining the responsibility for each customer class for the overall annual revenue requirement. The results of the allocation process affects the differences in rates among BVES’s customer classes.
There are two commonly used methods of revenue allocation. One is to allocate revenues among customer classes based on the system average percent (“SAP”) methodology, and the other 3 is to allocate revenues among customer classes based on a long-run marginal cost (“LRMC”) methodology that is frequently referred to as an equal percentage of marginal costs (“EPMC”). If BVES proposed implementing 100% EPMC allocation in this GRC, it would cause unacceptable results for the permanent residential customer class. Therefore, BVES is proposing a hybrid approach using both the EPMC and SAP methodologies.
BVES proposes to allocate 20 percent of proposed revenues based on the EPMC method and 80 percent of proposed revenues based on the SAP method. BVES’s proposed methodology strikes an appropriate balance between moving to a cost-based rate structure (EPMC method) and addressing rate continuity concerns (SAP method). For example, relying only on the results of the MCS study (i.e., 100 percent EPMC method) would result in an increase for the Residential Permanent rate class of 79 percent, more than 2.0 times the system average rate increase. BVES believes that such an increase for the Residential Permanent rate class is not appropriate particularly since the driver for the overall revenue increase is related to wildfire mitigation costs (both past and forecasted) which provides benefits to all customers.
This Section also sets forth the actual rates BVES proposes for 2023, 2024, 2025 and 2026 for each customer class and tariff schedule. The rates are based upon the revenue allocation methodologies described above and are designed to recover the overall revenue requirement sought by BVES in this Application.
C. PROTEST PERIOD END DATE
Although the protest period end-date or deadline typically is 30 days from the date of the filing of the application, as indicated in the GRC application, BVES will not object to any protest filed within 30 days of the filing date of this Supplement. Thus, any protest filed after 30 days from the filing date of this Supplement will be deemed untimely and not considered.
D. CONCLUSION
Bear Valley respectfully requests that the Commission issue an Order approving BVES’s requests set forth in this Amendment and Supplement to Application, as well as its requests specifically described in subpart G – Prayer for Relief as set forth in Application 22-08-010. 4 Dated at Big Bear Lake, California: October 11, 2022
Respectfully submitted,
BY: /s/ Sean Matlock
Sean Matlock
Energy Resources Manager
Bear Valley Electric Service, Inc.
42020 Garstin Drive
P.O. Box 1547
Big Bear Lake, California 92315
Telephone: (909) 866-4678
Facsimile: (909) 866-5056
E-mail: [email protected]
5 VERIFICATION
I am President, Secretary and Treasurer of Bear Valley Electric Service, Inc., and am authorized to make this verification on its behalf with respect to the within Amendment and Supplement to Application. I have read the Amendment and Supplement to Application and supporting testimony and I am informed and believe that the matters therein are true, and on that ground, I allege that the matters stated therein are true.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Executed on this 11th day of October, 2022, at Big Bear Lake, California.
By: /s/ Paul Marconi
Paul Marconi
President, Secretary and Treasurer
Bear Valley Electric Service, Inc.
APPENDIX A
SERVICE LIST
SERVICE LIST
City Attorney
City of Big Bear Lake
P.O. Box 10000
Big Bear Lake, CA 92315
County Clerk
County of San Bernardino
385 N. Arrowhead Ave., 2nd Floor
San Bernardino, CA 92415-0140
County Counsel/District Attorney
County of San Bernardino
385 N. Arrowhead Ave., 4th Floor
San Bernardino, CA 92415-0140
Chief, Energy Division
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Shirley N. Weber, Ph.D.
California Secretary of State
1500 11th Street
Sacramento, CA 95814
[email protected]
Robert M. Pocta
Public Advocates Office
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
E-mail: [email protected]
Rita Merza
California Public Utilities Commission
Legal Division
320 West 4th Street Suite 500
Los Angeles, CA 90013
[email protected]
Office of the Attorney General
State of California
300 South Spring Street
Los Angeles, CA 90013
Fred G. Yanney
Attorney
Yanney Law Office
1300 Bristol Street North, Ste. 100
Newport Beach, CA 92660
City Clerk
City of Big Bear Lake
P.O. Box 2800
Big Bear Lake, CA 92315
[email protected]
Nguyen Quan
Manager – Regulatory Affairs
Bear Valley Electric Service, Inc.
630 E. Foothill Blvd.
San Dimas, CA 91773
[email protected]
Jon Pierotti
Vice President – Regulatory Affairs
Golden State Water Company
630 E. Foothill Blvd.
San Dimas, CA 91773
[email protected]
Paul Marconi
President, Treasurer & Secretary
Bear Valley Electric Service, Inc.
42020 Garstin Drive
PO Box 1547
Big Bear Lake, CA 92315
[email protected]
Tiffany Ikeda
California Public Utilities Commission
Legal Division
505 Van Ness Avenue
San Francisco, CA 94102-3214
[email protected]
Jedediah J. Gibson
Attorney
Downey Brand LLP
621 Capitol Mall, 18th Floor
Sacramento, CA 95814
[email protected]
Elaine Lau
California Public Utilities Commission
Administrative Law Judge Division
Room 5102
505 Van Ness Avenue
San Francisco, CA 94102-3214
[email protected]
Brian T. Cragg
Attorney
Downey Brand, LLP
455 Market Street, Suite 1500
San Francisco, CA 94105
[email protected]
Andrew Dugowson
California Public Utilities Commission
Commissioner Shiroma
505 Van Ness Avenue
San Francisco, CA 94102-3214
[email protected]
Jenny Au
California Public Utilities Commission
Energy Cost and Retail Choice Branch
320 West 4th Street Suite 500
Los Angeles, CA 90013
[email protected]
ATTACHMENT 6
ACTION ALERT
Fentanyl Crisis Legislation
Why this matters:
Communities throughout California are struggling with a quickly evolving opioid crisis, which is now being driven by the increase in synthetic opioid-related deaths — primarily fentanyl. According to the Centers for Disease Control and Prevention, 71,000 people died from synthetic opioid-related overdose in the United States in 2021, of which, 7,000 deaths occurred in California. In other words, 1 out of every 10 deaths from synthetic opioids in the United States occurs in California.
Talking Points
• It is critical that we advance legislative measures that would help stem the tide of illicit substance-related deaths in California and bring relief to the many communities mourning tragic, preventable deaths.
• Local communities experience the realities of the opioid epidemic each day through the increasing toll on families, first responders, educators, and many others.
• We call on lawmakers to take action on a number of proposed measures that put forward comprehensive solutions to address the substance use crisis and improve the safety and well-being of all Californians.
Contact Information for the Assembly Public Safety Committee Assembly Member Jones-Sawyer (Chair) - (916) 319-2057
Assembly Member Alanis (Vice Chair) - (916) 319-2022
Assembly Member Bonta - (916) 319-2018
Assembly Member Bryan - (916) 319-2055
Assembly Member Lackey - (916) 319-2034
Assembly Member Ortega - (916) 319-2020
Assembly Member Santiago - (916) 319-2054
Assembly Member Zbur - (916) 319-2051
Call and send a letter to the Assembly Committee on Public Safety urging them to support critical fentanyl-related legislation.
AB 33 (Bains), AB 367 (Maienschien), AB 474 (Rodriguez), and AB 955 (Petrie-Norris)
A sample letter for cities, including committee contact information, is attached.
ACTION
What are examples of what is happening in our communities? Merced
California dad arrested after girl, 2, overdoses on fentanyl San Francisco
Drug overdose deaths in California are skyrocketing, as the fentanyl crisis reaches beyond San Francisco
Aliso Viejo
More teenagers dying from fentanyl. ‘It has a hold on me, and I don’t know why’ Santa Cruz
12-year-old Santa Cruz girl overdoses on Fentanyl, after buying drug Sacramento
• 'Someone knows something': Sacramento family in mourning after 20-year-old dies of fentanyl poisoning
• Fentanyl continues to take students’ lives in Sacramento. Here’s how parents and schools are responding.
Los Angeles
• Teen died from fentanyl in school bathroom as mom begged staff to find her • L.A. riders bail on Metro trains amid ‘horror’ of deadly drug overdoses, crime • 10 Los Angeles middle schoolers treated for suspected overdoses Hollywood
7th LAUSD teen overdoses from possible fentanyl-laced pills Gilroy
3 dead, 1 hospitalized in suspected fentanyl overdose in Gilroy: sheriff Riverside
Woman died from fentanyl overdose while at Riverside County sobering center, according to lawsuit
Bakersfield
• Reports detail toddler’s fentanyl overdose; parents admit smoking drug every 7 hours
• North HS parents, administrators concerned over social media reports of fentanyl overdoses
Fresno
'If she could save one life': Legacy for CA fentanyl victim who died before high school graduation
Moreno Valley
Man dead, 2 women hospitalized after possibly ingesting fentanyl at Moreno Valley hotel
Orange County
Startling increase found in deaths of Orange County homeless people. Drugs are the main cause
Placer County/Roseville
Video shows alleged fentanyl sale and overdose minutes later in Placer County Santa Clarita
Possible fentanyl overdose in Santa Clarita sends junior high student to hospital Kern County/Ridgecrest
Fentanyl overdoses on the rise in the community
Riverbank
18-month-old dies of a fentanyl overdose in Riverbank; mother and boyfriend arrested San Luis Obispo
California mother charged after 3-year-old son dies of fentanyl overdose San Bernardino County/Victorville
18-year-old charged with murder in teen’s fentanyl overdose death in San Bernardino County
Livermore
23-month-old dies from fentanyl overdose, California cops say. Now dad is arrested Bay Area/Los Gatos
• ‘We are not trying to scare you.’ In California, fentanyl now behind 1 out of every 5 youth deaths
• Fentanyl-fueled overdose deaths are spiking in these Bay Area ZIP codes Butte County
2-year-old overdoses on fentanyl, parents arrested in Northern California Upland
Upland High student dies from fentanyl overdose
Yuba County
Man charged with murder for in-custody fentanyl overdose Milpitas
13 inmates overdose on fentanyl in Milpitas jail in one week Statewide
‘One pill can kill’: Tragic teen deaths spur California schools to finally battle fentanyl crisis
ATTACHMENT 7
ALL LETTERS MUST BE UPLOADED INTO THE LEGISLATURE’S ELECTRONIC LETTER PORTAL.
The portal automatically sends letters to the author’s office and the committee(s) of jurisdiction. Please visit https://calegislation.lc.ca.gov/advocates/ to create an account and upload the letter. If you are having difficulty accessing the portal, please contact Waleed Hojeij at [email protected].
In addition to submitting the letter through the portal, please also email a copy to your legislator(s) and [email protected] as well as your Regional Public Affairs Manager. ***CITY LETTERHEAD***
DATE
The Honorable Reginald Jones-Sawyer
Chair, Assembly Public Safety Committee
1020 N Street, Room 111
Sacramento, CA 95814
RE: Support of Fentanyl and Substance Use Related Legislation Dear Assembly Member Jones-Sawyer,
The City/Town of __________ is encouraged that the Assembly Public Safety Committee will be considering a slate of bills that could help save countless lives throughout our state. The City/Town of _______ supports several critically needed fentanyl and substance use-related pieces of legislation. These measures would stem the tide of illicit substance-related deaths in California and bring relief to the many communities mourning tragic, preventable deaths.
According to the Centers for Disease Control and Prevention, 71,000 people died from synthetic opioid-related overdose in the United States in 2021, of which, 7,000 deaths occurred in California. In other words, 1 out of every 10 deaths from synthetic opioids in the United States occurs in California. The increase of drug-related overdose deaths is largely being driven by the increase in synthetic opioid-related deaths, primarily fentanyl.
Local communities experience the realities of the opioid epidemic every day through the increasing toll on families, first responders, educators, child welfare agencies, public safety officials, health professionals, and community organizations, among others. As committed partners in finding solutions to address the growing substance use crisis in our state, the City/Town of _______ supports the following measures:
Assembly Public Safety Special Hearing on Fentanyl
AB 33 (Bains) Fentanyl Addiction and Overdose Prevention Task Force.
AB 367 (Maienschein) Controlled Substances: Enhancements.
AB 474 (Rodriguez) State Threat Assessment Center: Transnational Criminal Organizations.
AB 955 (Petrie-Norris) Controlled Substances
PLEASE CITE HOW YOUR CITY WILL BE AFFECTED BY THESE BILLS HERE.
Now, more than ever, is the time to take action on measures that will preserve human life and improve the safety and well-being of all Californians.
For these reasons, the City/Town of _______ requests your support on these fentanyl related measures.
Sincerely,
NAME
TITLE
CITY/TOWN of ______________
cc: Members, Assembly Public Safety Committee
Your Assembly Member(s) and Senator(s) (via email)
Your Cal Cities Regional Public Affairs Manager (via email) League of California Cities (via email: [email protected]) ATTACHMENT 8
DATE
The Honorable Josh Becker, Chair
Senate Budget Subcommittee on Resources, Environmental Protection, and Energy 1021 N Street, Room 7250
Sacramento, CA 95814
The Honorable Steve Bennett, Chair
Assembly Budget Subcommittee on Climate Crisis, Resources, Energy, and Transportation 1021 N Street, Room 4710
Sacramento, CA 95814
Re: Western Joshua Tree Conservation Act Budget Trailer Bill – SUPPORT IF AMENDED Dear Senator Becker, Assemblymember Bennett, and Members of the Subcommittees, On behalf of ______ ________, I write to support the Western Joshua Tree Conservation Act draft trailer bill language, if it is amended. This important legislation will better protect the Western Joshua tree while allowing development in the Mojave Desert to proceed through a reasonable permitting and review process. We believe sensible amendments should be added to clarify and improve the bill.
A petition to list the Western Joshua tree (WJT) as a California endangered species was submitted to the Fish and Game Commission in 2019. Since that time, a broad debate has been underway between environmental advocates, local governments, and other key stakeholders on the merit of listing the WJT. The Fish and Game Commission is still considering whether to list the species due, in part, to concerns about the administrative burden an endangered listing would place on the California Department of Fish and Wildlife (CDFW), forcing the department to oversee an extensive permitting process for a species whose population numbers in the millions. Such a massive permitting and conservation program has never been attempted in state history.
The Western Joshua Tree Conservation Act has been proposed by CDFW as an alternative to listing the species. This bill, if enacted, would greatly expand active protections for the WJT while still allowing development to proceed under a mitigation fee program and other significant restrictions. _____________ agrees that a different approach is needed to protect California native species that simply do not merit an endangered listing. While there are several provisions of the trailer bill language we disagree with, ______________ supports this bill if specific amendments are added. These amendments are state below:
Authorize local agencies to permit multifamily, commercial, and industrial projects: Allowing local governments to permit multifamily development in addition to single-family residences is a sensible approach that draws on their years of planning and review experience in this arena.
Local agencies should also be allowed to oversee permitting for commercial and industrial projects. The Mojave Desert is a high growth area in the state, where new development is needed to support hundreds of thousands of residents. New residential development requires grocery stores, shops, restaurants, gas stations, and medical offices to support residents, in addition to public works such as roads, sewers, and flood control channels. These business centers provide an essential tax base to fund services. Local agencies are fully equipped to permit multifamily, commercial, and industrial projects. Local governments should be authorized to permit these types of projects, lifting a heavy administrative burden on CDFW.
Clarification needed to define WJT stems and trunk: The Joshua tree may produce new shoots called rhizomes from its root system. These shoots can be clustered around and emerge from the base of the tree’s trunk. While the bill’s language defines an individual tree as any WJT stem or trunk arising from the ground, an amendment should clarify that shoots emerging directly from the tree’s trunk should count as a part of the original tree and not as a separate tree.
Adjustment on the number of WJT taken for a public works project: Public works projects are limited to taking no more than 40 WJT in the current bill. Such a severe restriction would severely limit essential public projects that must cover extensive ground areas such as paving roads or excavating flood control channels. This limit should be adjusted to allow no more than 40 WJT per acre for a public works project rather than for the entire project. Per acre takings is a sensible approach for relatively rare but critical public infrastructure projects.
The Western Joshua Tree Conservation Act will carefully balance environmental preservation and allowing essential development to move forward. This bill will be a model for the state to preserve native species threatened by wildfire, climate change, and other hazards. Local agencies should be authorized to actively assist in the enforcement of this legislation. This will lighten the administrative burden on CDFW as well as the State of California, which will not have to provide new funding to support CDFW’s permitting oversight for the Joshua tree.
For these reasons, _______________ supports the Western Joshua Tree Conservation Act trailer bill, if it is amended. If you have any questions about our position, please contact ______________, at __________________.
Sincerely,
CC:
Governor Gavin Newsom
President Pro Tempore Toni Atkins of the California State Senate Speaker Anthony Rendon of the California State Assembly Director Charlton Bonham of the California Department of Fish and Wildlife ATTACHMENT 9