Agenda — California City City Council, October 11, 2022

Jeanie O’Laughlin
Mayor
Nick Lessenevitch
Mayor Pro Tem
Jim Creighton
Councilmember
Kelly Kulikoff
Councilmember
Karen Macedonio
Councilmember
AGENDA

CITY OF CALIFORNIA

CITY COUNCIL/HOUSING AUTHORITY/SUCCESSOR AGENCY
TUESDAY, OCTOBER 11, 2022
REGULAR MEETING @ 6:00 PM

COUNCIL CHAMBERS & VIA ZOOM
21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505
If you need special assistance to participate in this meeting, please contact the City Clerk at (760)373-7140 or via email at [email protected] . We request a 72-hour notification prior to the meeting in order for the City to make reasonable arrangements to ensure accessibility. (28 CFR 35.102-35.104 American Disabilities ACT Title II) Zoom instructions and notes:

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4. Comments
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Public is urged to listen to the meeting in a quiet place, to avoid background noise.

We also request public to MUTE your audio device when not commenting to avoid disruption during meeting. 1 October 11, 2022
** At this time, please take a moment to turn off your cell phones ** REGULAR MEETING 6:00 PM

CALL TO ORDER

PLEDGE OF ALLEGIANCE/INVOCATION

ROLL CALL
Councilmembers: Creighton, Kulikoff, Macedonio, Mayor Pro Tem Lessenevitch, Mayor O’Laughlin

ADOPT AGENDA

CITY CLERK REPORTS/LATE COMMUNICATIONS
• Correspondence from J.M. Powers dated September 18, 2022, September 20, 2022, September 23, 2022, September 24, 2022. We received correspondence from J.M. Powers he requested they be part of the official record. They will be attached to the minute meetings closest to the date he submitted.

DEPARTMENTAL REPORTS
• OHV
• Park and Recreation
• Planning (Department report will be on October 25th agenda)

CITY MANAGER REPORT

PRESENTATION
Introduction of New Police Chief

CIVIC/COMMUNITY/ORGANIZATION ANNOUNCEMENTS

PUBLIC BUSINESS FROM THE FLOOR
This portion of the meeting is reserved for the public to address the City Council on any matter not on the agenda and over which the City Council has jurisdiction. Comments are to be limited to three (3) minutes. The City Council will receive the comments but cannot engage in back-and-forth discussion with the public or make any decision. The City Council can direct staff to bring the item back to a future agenda for discussion.

CONSENT CALENDAR
All items on the consent calendar are considered routine, non-controversial and will be approved by (1) one motion if no member of the council, staff, or public wishes to comment or ask questions. Public comments to be limited to (3) three minutes. Roll call vote required.

CC 1. approve City Check Register dated 09/23/2022 through 10/06/2022 CC 2. approve bid for Section 21 Water Mains Replacement Project by - City Engineer Ramon H Pantoja

NEW BUSINESS
NB 1. Presentation of FY 2020-21 Financial Audit Report Prepared by Bryant L. Jolley, Certified Public Accountants by - Kenneth Cooper, Finance Manager
Recommendation:

Staff recommends that Council receive and file the FY20-21 Audit Report from Bryant Jolley CPA’s.

NB 2. Fast Track Resolution 10-22-2952 (Pursuant to Resolution 05-19-2090) by - Interim City Manager Dr. Jim Hart
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Recommendation:

The City Council approve the Resolution adopting a Fast Track process to improve processing and tracking of applications submitted to the planning and building departments.

NB 3. Water Standby Charge-Intention to Levy by – Dr. Jim Hart, Interim City Manager Recommendation:

Adopt “Resolution No. 10-22-2953 Of the City Council of the City of California City initiating proceedings for the establishment of the Water Standby charges for fiscal year 2022-23” NB 4. Approval of Service Order with Clear Gov for City Budget Preparation by – Dr. Jim Hart, Interim City Manager
Recommendation:

Staff recommends that the City Council approve the Service Order with Clear Gov in the amount of $19,240.00.

NB 5. Pothole and Roads Problem by – Kelly Kulikoff, Councilmember Recommendation:

City Council and public to discuss possible solutions. Bring back an action item, workshop, or trail item for further discussion.

COUNCILMEMBER COMMENTS, AGENDA REQUESTS, AND AB1234 REPORTS This portion of the meeting is reserved for council members to present information, announcements, and items that have come to their attention. The Brown Act precludes Council, staff or public discussion. Short staff responses are appropriate. The Council will take no formal action. A Council member may request the City Clerk to calendar an item for consideration at a future meeting or refer an item to staff.

ADJOURNMENT
AFFIDAVIT OF POSTING: This agenda was posted on all official City bulletin boards and the City website at least 72 hours prior to the Council Meeting. Socorro Chavez, City Clerk
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ITEM NO.

DEPARTMENT REPORT

COUNCIL AGENDA ITEM
October 11, 2022
PREPARED BY: Inge Elmes, OHV Manager

SUBJECT: OHV MONTHLY DEPARTMENT REPORT
Events
Staff is looking forward to another busy season as cooler weather and Columbus Day weekend approach.

Operations
Staff is busy preparing for upcoming grant projects and park aides are ready for OHV visitors.

Manager Updates
Staff is currently working on completing project agreements for the OHMVR Division grants.

Finance Report
For the month of September, OHV sales totaled $4,914.00. These numbers are actuals and reflect only amounts received within each month. Please refer to Monthly Permit Sales report for FY totals. *Not all proceeds are deposited in the same month.
**OHV sales are deposited to specific OHV Permit Program GL revenue codes #29-3992 through #29- 3998. Please refer to financial statement for details.
***Some merchandise was purchased by staff at a discounted rate. All sales for merchandise are allocated to GL revenue code 29-3691.
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Sept 2022 MONTHLY OHV PROGRAM SALES FY 22/23

SALES QTY CASH CHECK CREDIT CARD PAYPAL TOTALS YTD TOTALS Single Permits (Prorated) $10
Single Permits $15 84 $780 $90 $255 $135 $1,260 2,520.00 Small Family (Prorated) $40
Small Family $60 26 $480 $120 $780 $180 $1,560 2,460.00 Large Family (Prorated) $80
Large Family $100 3 $100 $200 $300 400.00
OHV 4 Pack (Prorated) $35
OHV 4 Pack $50 12 $450 $50 $100 $600 900
RV Pass (Prorated) $15
RV Pass $30 9 $150 $90 $30 $270 750.00
Single Dump Pass $5 3 $10 $5 $15 20
Single Water Pass $5 2 $5 $5 $10 10
Additional Permits (Prorated) $5
Additional Permits $10 5 $50 $50 100.00
Free Free $0 0
Residents Permits Free $0 0
Paypal Fees - $4 $4 12 $48 $48 $104
Holiday Week Day - Power $25
Holiday Week Day - Water $15
Non-Holiday Weekday-Power $15 5 $75 $75 135.00
Non-Holiday Weekday-Water $10 2 $20 $20 40.00
Holiday Weekend - Power $40 3 $40 $80 $120 120
Holiday Weekend - Water $20 2 $40 $40 40
Non-Holiday Weekend-Power $25 4 $75 $25 $100 275.00
Non-Holiay Weekend-Water $15 3 $30 $15 $45 105
Shower Tokens $0.50 414 $151 $56 $207 416.00
Transient Lodging $150
Vendor Fees $1
Special Event Fees $5
Map Sales $3 9
Donations $1 52
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Hoodies $40 20.00
Short Sleeve Shirts $203 $50 $50 80.00
Long Sleeve Shirts $30 $0 45.00
Caps $201 $20 $20 110.00
Bucket Hats $20 $0 70.00
Visors $15 $0 15.00
Beenies $15
Tumblers $253 $55 $55 55.00
Stickers $37 $9 $10 $19 19.00
Coffee Mugs $155 $10 $40 $50 50.00
MONTHLY TOTALS $2,445 $260 $1,616 $593 $4,914 $8,920.00 14 October 11, 2022

CITY COUNCIL
DATE: 10/11/2022
TO: City Council
FROM: Recreation Supervisor – Theresa Oaks
SUBJECT: Department Report for the Month of August
______________________________________________________________________ Events
Staff has been working on National Night Out Event. Staff and volunteers are continuing planning the annual Tree Lighting, Parade, and Holiday Village event.

Outside movie nights continue to be enjoyed by the public. The next movie will be geared toward adults as requested and will be a horror movie played on Oct 15, at 8 pm.

Operations
During the month of September, our staff is continuing clean up and rejuvenation of the parks, including the grass at Central Park. Staff continues to focus on clean up at Central Park, Balsitis, and Par 3. Staff are working on ways to get sprinklers or watering systems set up at Par 3.

The adult aerobics class will begin again the first week of October. The class is Tues, Wed, and Fri from 10-11. The Strata is open for adult walking club from 11- 12 on Tues., Wed., and Fri. The Strata Center also continues to be open with game room activities and open gym. The Parks free art classes are every Wednesday afternoon from 2:30- 4 pm at the Strata Center. The number of people using the Strata varies on a day-to-day basis, but according to our sign in sheets we have had an average daily attendance of approximately 28 people. This includes kid’s basketball practice, open gym, game room, etc.

Staff is continuing work with the city engineer, as well as Kern County on the Balsitis project, and are making decent strides. Staff has also been working on preparing for a workshop to formulate a 5-year plan that will allow us to move 15 October 11, 2022
forward. The first workshop will be October 6th at 10 AM, the second workshop will be in the evening to allow for more public participation.

The parks and recreation commission has revised their meeting schedule to be the third Monday of every month at 6 pm. The next meeting will be October 17th at 6 PM in chambers.

Programming
Programming will continue to include adult aerobics, adult walking club, as well as open gym. Staff are working on getting a contract that will allow us to partner with We Got Next Sports which has brought a phenomenal basketball program, NFL flag football as well as cheerleading. They would also like to bring volleyball and soccer. Football games hosted by We Got Next Sports has brought between 80 and 85 families to Central Park every Saturday for games. Staff continues to partner with the Art Commission in hosting art classes for kids of all ages. The Art Commission also hosts a paint n sip the third Saturday of every month.

ABC Learning Program is off to a great start. Staff and the kids are all having a great time, and we are currently running at capacity with a waiting list.

Future Programming
Staff is closer to bringing a pottery/ ceramics class to Central Park and continues to research the viability. Staff continue to look into the feasibility of an afterschool program available for school age kids that would include homework time, play time, crafts, etc.

Staff also continues researching field trips for the senior citizens, to ensure that the prices are not prohibitive.
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CC. 1
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CITY COUNCIL
Consent Agenda Item:

October 11, 2022
TO:

FROM:

Mayor and City Council
Interim City Manager – City Engineer Ramon H Pantoja
SUBJECT: Accept the bid as submitted by Lyles Utility Construction, LLC for the Section 21 Water Mains Replacement Project in the amount of $2,928,110.00; and authorize the City Manager to execute the construction agreement.
…………………………………………………………………………………………………
Background:

The City of California City desires to upgrade and replace existing failing water mains lines at various locations.

On September 20, 2022, at 2:00 PM. sealed bids were opened for this project. A total of seven (7) bids were received and opened by the City Clerk.

The following is the tabulation of the bids:

Bidder Total Bid
Lyles Utility Construction, LLC $ 2,928,110.00
RE Chafee Construction $ 3,172,177.00
Dominguez General Engineering $ 3,340,345.00
Griffith Company $ 3,378,274.00
Unified Field Services $ 3,484,778.00
Ruben’s Pipeline $ 3,716,839.44
DDH Appley Valley Construction $ 3,740,090.00
Attached is the Bid Summary.

The City Engineer (BHT Engineering, Inc.) has reviewed and qualified the lowest responsible bidder, Lyles Utility Construction, LLC. The City is allowing 100 working days for the contractor to complete the project.

The work shall conform to the applicable requirements of “American National/AWWA standard for installation of water mains. Contractor has all applicable licenses to perform the work to install water distribution mains and appurtenances.

Recommendation:

Motion to accept the lowest responsible bid, award the project and to execute a construction agreement with Lyles Utility Construction, LLC for $2,928,110.00 for the Section 21 water mains replacement project, and authorize the City Manager to execute the construction agreement.

Additionally, Staff recommends the approval of Ten percent of bid amount (10%), for Construction Contingencies. These funds will be utilized only for unforeseen work that might occur during the construction process.

CC 2.
28 October 11, 2022
Together with the award of the Construction contract, staff will utilize an additional three (3%) percent to execute a task order with BHT Engineering, Inc. to provide construction staking, construction Management/Observation (as needed) to the water department, and project close-out.

Fiscal impact:

Costs: Bid Construction Contract: $ 2,928,110.00
10% Contingency: $ 292,811.00
3% Construction staking, project
management and Close-out: $ 87,843.00
Total Estimated Construction Phase
Cost: $ 3,308,764.00
Funding: City Water Fund: $ 3,308,764.00
Note: Compaction testing not included by BSK Associates Environmental action: CEQA Notice of Exemption completed.

Attachments: Bid Summary
Site Map
Construction Agreement
29 October 11, 2022
BHT Engineering, Inc 9/21/2022
Bid opening date: September 20th, 2022 @ 2:00 PM
Total Bids Received/opened = 7 #1 #2 #3
ENGINEER'S ESTIMATE Lic# 981146 Lic# 897948 Lic#814046
ITEM UNIT OF EST. PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL NO. ITEM CODE MEASURE QNTY PER UNIT PRICE PER UNIT PRICE PER UNIT PRICE PER UNIT PRICE 1 Provide and Install New 12" Waterline L.F. 15,650 $ 92.00 $ 1,439,800.00 $ 1,533,700.00 98.00 $ $ 118.00 $ 1,846,700.00 $ 130.00 $ 2,034,500.00 2 Provide and Install New 12" Gate Valves, valve
boxes, and valve boxes hangers. EA. 26 $ 9,600.00 $ 249,600.00 $ 3,600.00 $ 93,600.00 $ 3,600.00 $ 93,600.00 $ 4,000.00 $ 104,000.00 3 Provide and Install New 10" Gate Valves, valve
boxes, and valve boxes hangers. EA. 2 $ 15,600.00 7,800.00 $ 3,100.00 $ 6,200.00 $ 3,000.00 $ 6,000.00 $ 3,500.00 $ 7,000.00 $ 4 Provide and Install New 8" Gate Valves, valve boxes,
and valve boxes hangers. EA. 2 $ 12,400.00 6,200.00 $ 2,082.00 $ 4,164.00 $ 2,050.00 $ 4,100.00 $ 3,000.00 $ 6,000.00 $ 5 Provide and Install New 6" Gate Valves, valve boxes,
and valve boxes hangers. EA. 2 $ 9,600.00 4,800.00 $ 1,563.00 $ 3,126.00 $ 1,400.00 $ 2,800.00 $ 2,500.00 $ 5,000.00 $ 6 Provide and Install New 4" Gate Valves, valve boxes,
and valve boxes hangers. EA. 2 $ 6,800.00 3,400.00 $ 1,318.00 $ 2,636.00 $ 1,150.00 $ 2,300.00 $ 2,000.00 $ 4,000.00 $ 7 Provide and Install New Fire Hydrants including
laterals, valves and fittings EA. 18 $ 266,400.00 14,800.00 $ 12,434.00 $ 223,812.00 $ 8,400.00 $ 151,200.00 $ 10,000.00 $ 180,000.00 $ 8 Provide and Install New 1" polyethylene on Short
Service Laterals (15 LF Typ)/Tie-in to existing meter.

Resurface to match existing.

EA. 5 $ 23,000.00 4,600.00 $ 1,945.00 $ 9,725.00 $ 4,300.00 $ 21,500.00 $ 1,500.00 $ 7,500.00 $ 9 Trenching of Main Water lines under asphalt. Asphalt
Restoration per Kern County Plate R-55. L.F. 320 $ 25,600.00 80.00 $ 97.00 $ 31,040.00 $ 74.00 $ 23,680.00 $ 20.00 $ 6,400.00 $ Construction Subtotal… 2,048,800.00 $ SECTION 21 BID 1,908,003.00 $ SEC 21 BID 2,151,880.00 $ SEC 21 BID 2,354,400.00 $

Resurface to match existing.

EA. 8 $ 4,600.00 $ 36,800.00 $ 1,883.00 $ 15,064.00 $ 2,900.00 $ 23,200.00 $ 1,500.00 $ 12,000.00 5 Provide and Install New 1" polyethylene on Long
Service Laterals (45 LF Typ)/Tie-in to existing meter.

Resurface to match existing.

EA. 7 $ 7,200.00 $ 50,400.00 $ 2,643.00 $ 18,501.00 $ 4,300.00 $ 30,100.00 $ 2,000.00 $ 14,000.00 6 Remove and Replace Existing Fire Hydrants including
laterals EA. 1 $ 12,000.00 $ 12,000.00 $ 13,055.00 $ 13,055.00 $ 8,400.00 $ 8,400.00 $ 10,000.00 $ 10,000.00 7 Trenching of Main Water lines under asphalt. Asphalt
Restoration per Kern County Plate R-55. L.F. 1,256 $ 80.00 $ 100,480.00 $ 98.00 $ 123,088.00 $ 45.00 $ 56,520.00 $ 20.00 $ 25,120.00 Construction Subtotal… $ 327,392.00 KENNISTION AVE BID $ 284,174.00 KENNISTION AVE BID $ 244,347.00 KENNISTION AVE BID $ 215,325.00

Resurface to match existing.

EA. 1 $ 7,200.00 $ 7,200.00 $ 2,870.00 $ 2,870.00 $ 3,800.00 $ 3,800.00 $ 2,000.00 $ 2,000.00 5 Remove and Replace Existing Fire Hydrants including
laterals EA. 1 $ 12,000.00 $ 12,000.00 $ 12,321.00 $ 12,321.00 $ 8,400.00 $ 8,400.00 $ 10,000.00 $ 10,000.00 6 Trenching of Main Water lines under asphalt. Asphalt
Restoration per Kern County Plate R-55. L.F. 210 $ 80.00 $ 16,800.00 $ 135.00 $ 28,350.00 $ 45.00 $ 9,450.00 $ 20.00 $ 4,200.00 7 Temporary Traffic Control LS. 1 $ 12,000.00 $ 12,000.00 $ 18,500.00 $ 18,500.00 $ 14,000.00 $ 14,000.00 $ 3,000.00 $ 3,000.00 Construction Subtotal… $ 180,720.00 NEURALIA RD BID $ 192,611.00 NEURALIA RD BID $ 186,690.00 NEURALIA RD BID $ 186,000.00

ENGINEER'S ESTIMATE
ITEM UNIT OF EST. PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL NO. ITEM CODE MEASURE QNTY PER UNIT PRICE PER UNIT PRICE PER UNIT PRICE PER UNIT PRICE 1 Provide and Install New 8" Waterline L.F. 2,670 $ 72.00 $ 192,240.00 $ 75.00 $ 200,250.00 $ 72.00 $ 192,240.00 $ 105.00 $ 280,350.00 2 Provide and Install New 8" Gate Valves, valve boxes,
and valve boxes hangers. EA. 5 $ 39,000.00 7,800.00 $ 2,082.00 $ 10,410.00 $ 2,050.00 $ 10,250.00 $ 3,000.00 $ 15,000.00 $ 3 Provide and Install New 6" Gate Valves, valve boxes,
and valve boxes hangers. EA. 2 $ 9,600.00 4,800.00 $ 1,563.00 $ 3,126.00 $ 1,400.00 $ 2,800.00 $ 2,000.00 $ 4,000.00 $ 4 Provide and Install New 4" Gate Valves, valve boxes,
and valve boxes hangers. EA. 2 $ 6,800.00 3,400.00 $ 1,318.00 $ 2,636.00 $ 1,150.00 $ 2,300.00 $ 1,500.00 $ 3,000.00 $ 5 Provide and Install New 1" polyethylene on Short
Service Laterals (15 LF Typ)/Tie-in to existing meter.

Resurface to match existing.

EA. 2 $ 9,200.00 4,600.00 $ 2,000.00 $ 4,000.00 $ 4,300.00 $ 8,600.00 $ 1,500.00 $ 3,000.00 $ 6 Provide and Install New 1" polyethylene on Long
Service Laterals (50 LF approx.)/Tie-in to existing
meter. Resurface to match existing.

EA. 13 $ 93,600.00 7,200.00 $ 2,630.00 $ 34,190.00 $ 4,800.00 $ 62,400.00 $ 2,000.00 $ 26,000.00 $ 7 Remove and Replace Existing Fire Hydrants including
laterals EA. 5 $ 60,000.00 12,000.00 $ 12,094.00 $ 60,470.00 $ 8,400.00 $ 42,000.00 $ 10,000.00 $ 50,000.00 $ 8 Trenching of Main Water lines under asphalt. Asphalt
Restoration per Kern County Plate R-55. L.F. 96 $ 7,680.00 80.00 $ 133.00 $ 12,768.00 $ 45.00 $ 4,320.00 $ 20.00 $ 1,920.00 $ JIMSON AVE 418,120.00 $ JIMSON BID $ 327,850.00 JIMSON BID $ 324,910.00 JIMSON BID $ 383,270.00

ENGINEER'S ESTIMATE
ITEM UNIT OF EST. PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL NO. ITEM CODE MEASURE QNTY PER UNIT PRICE PER UNIT PRICE PER UNIT PRICE PER UNIT PRICE 1 Provide and Install New 8" Waterline L.F. 1,110 $ 72.00 $ 79,920.00 $ 84.00 $ 93,240.00 $ 95.00 $ 105,450.00 $ 105.00 $ 116,550.00 2 Provide and Install New 10" Gate Valves, valve
boxes, and valve boxes hangers. EA. 1 $ 7,800.00 $ 7,800.00 $ 3,100.00 $ 3,100.00 $ 3,000.00 $ 3,000.00 $ 4,000.00 $ 4,000.00
3 Provide and Install New 8" Gate Valves, valve boxes,
and valve boxes hangers. EA. 6 $ 46,800.00 7,800.00 $ 2,082.00 $ 12,492.00 $ $ 12,300.00 2,050.00 $ 3,000.00 $ 18,000.00 $ 4 Provide and Install New Fire Hydrants including
laterals, valves and fittings EA. 3 $ 10,200.00 3,400.00 $ 12,200.00 $ 36,600.00 $ $ 25,200.00 8,400.00 $ 10,000.00 $ 30,000.00 $ 5 Trenching of water main lines under asphalt,
including asphalt restoration LF 120 $ 9,600.00 80.00 $ 167.00 $ 20,040.00 $ $ 5,400.00 45.00 $ 20.00 $ 2,400.00 $
Construction Subtotal… 154,320.00 $ Doolittle Ave BID $ 165,472.00 Doolittle Ave BID $ 151,350.00 Doolittle Ave BID $ 170,950.00

MANDATORY MEASURES ALL PROJECT AREAS
ITEM UNIT OF EST. PRICE TOTAL PRICE TOTAL PRICE TOTAL PRICE TOTAL NO. ITEM CODE MEASURE QNTY PER UNIT PRICE PER UNIT PRICE PER UNIT PRICE PER UNIT PRICE 1 Temporary Traffic Control LS 1 $ 28,000.00 28,000.00 $ 12,000.00 $ 12,000.00 $ 60,000.00 $ 60,000.00 $ 3,000.00 $ 3,000.00 $ 2 Prepare and Implement Stormwater Soils Loss
Prevention Plan and BMP's LS 1 $ 14,000.00 14,000.00 $ 21,000.00 $ 21,000.00 $ 41,000.00 $ 41,000.00 $ 5,000.00 $ 5,000.00 $ 3 Desert Tortoise Pre-Construction Biological Survey LS 1 $ 22,000.00 22,000.00 $ 17,000.00 $ 17,000.00 $ 12,000.00 $ 12,000.00 $ 20,000.00 $ 20,000.00 $ Mandatory Measures.. $ 64,000.00 Mandatory Measures BID $ 50,000.00 Mandatory Measures BID $ 113,000.00 Mandatory Measures BID $ 28,000.00 COMBINED BID TOTAL $ 3,193,352.00 COMBINED BID TOTAL $ 2,928,110.00 COMBINED BID TOTAL 3,172,177.00 $ COMBINED BID TOTAL $ 3,337,945.00 BID $ 2,927,270.00 BID $ 3,340,345.00
DIFF $ (840.00) DIFF $ 2,400.00

CITY OF CALIFORNIA CITY

KERN COUNTY, CALIFORNIA
SECTION 21 WATERLINES REPLACEMENT PROJECT VARIOUS LOCATIONS SECTION 21

BIDS SUMMARY

NEURALIA RD
Lyles Utility Construction RE Chafee Construction Dominguez General Engineering

KENNISTON AVE
FROM 79TH ST TO POPPY BLVD

FROM CAL-CITY BLVD TO WALPOLE AVE

YERBA-CCB-BARON-MENDIBURU RD

JIMSON AVE

DOOLITTLE AVE

FROM MITCHELL BLVD TO MENDIBURU RD

FROM YERBA BLVD TO ISABELLA BLVD
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Section 21 Water Mains Replacement 1

CITY OF CALIFORNIA CITY

CONSTRUCTION CONTRACT
SECTION 21 WATER MAINS REPLACEMENT PROJECT

1. PARTIES AND DATE.

This Contract is made and entered into this _11th_ day of October 2022 by and between the City of California City, a public agency and public corporation of the State of California (“City”) and Lyles Utility Construction, LLC, a corporation with its principal place of business at 525 W. Alluvial Avenue, Fresno, California 93711 (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Contract.

2. RECITALS.

2.1 City. City is a public agency organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.

2.2 Contractor. Contractor desires to perform and assume responsibility for the provision of certain construction services required by the City on the terms and conditions set forth in this Contract. Contractor represents that it is duly licensed and experienced in providing _Road Reconstruction__ related construction services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City. The following license classifications are required for this Project: General Engineering Contractor license Class A.

2.3 Project. City desires to engage Contractor to render such services for the SECTION 21 WATER MAINS REPLACEMENT Project (“Project”) as set forth in this Contract.

2.4 Project Documents & Certifications. Contractor has obtained, and delivers concurrently herewith, a performance bond, a payment bond, and all insurance documentation, as required by the Contract.

3. TERMS

3.1 Incorporation of Documents. This Contract includes and hereby incorporates in full by reference the following documents, including all exhibits, drawings, specifications, and documents therein, and attachments and addenda thereto:
 Services/Schedule (Exhibit “A”)
 Plans and Specifications (Exhibit “B”)
 Special Conditions (Exhibit “C”)
 Contractor’s Certificate Regarding Workers’ Compensation (Exhibit “D”)  Public Works Contractor Registration Certification (Exhibit “E”)  Payment and Performance Bonds (Exhibit “F”)
 Addenda
 Notice Inviting Bids, if any
 Instructions to Bidders, if any
 Contractor’s Bid
32 October 11, 2022
Section 21 Water Mains Replacement 2

3.2 Contractor’s Basic Obligation; Scope of Work. Contractor promises and agrees, at its own cost and expense, to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to complete the Project fully and adequately, including all structures and facilities necessary for the Project or described in the Contract (hereinafter sometimes referred to as the “Work”), for a Total Contract Price as specified pursuant to this Contract. All Work shall be subject to, and performed in accordance with the above referenced documents, as well as the exhibits attached hereto and incorporated herein by reference. The plans and specifications for the Work are further described in Exhibit “B” attached hereto and incorporated herein by this reference. Special Conditions, if any, relating to the Work are described in Exhibit “C” attached hereto and incorporated herein by this reference.

3.2.1 Change in Scope of Work. Any change in the scope of the Work, method of performance, nature of materials or price thereof, or any other matter materially affecting the performance or nature of the Work shall not be paid for or accepted unless such change, addition or deletion is approved in writing by a valid change order executed by the City. Should Contractor request a change order due to unforeseen circumstances affecting the performance of the Work, such request shall be made within five (5) business days of the date such circumstances are discovered or shall waive its right to request a change order due to such circumstances. If the Parties cannot agree on any change in price required by such change in the Work, the City may direct the Contractor to proceed with the performance of the change on a time and materials basis.

3.2.2 Substitutions/“Or Equal”. Pursuant to Public Contract Code Section 3400(b), the City may make a finding that designates certain products, things, or services by specific brand or trade name. Unless specifically designated in this Contract, whenever any material, process, or article is indicated or specified by grade, patent, or proprietary name or by name of manufacturer, such Specifications shall be deemed to be used for the purpose of facilitating the description of the material, process or article desired and shall be deemed to be followed by the words “or equal.”
Contractor may, unless otherwise stated, offer for substitution any material, process or article which shall be substantially equal or better in every respect to that so indicated or specified in this Contract. However, the City may have adopted certain uniform standards for certain materials, processes and articles. Contractor shall submit requests, together with substantiating data, for substitution of any “or equal” material, process or article no later than thirty-five (35) days after award of the Contract. To facilitate the construction schedule and sequencing, some requests may need to be submitted before thirty-five (35) days after award of Contract. Provisions regarding submission of “or equal” requests shall not in any way authorize an extension of time for performance of this Contract. If a proposed “or equal” substitution request is rejected, Contractor shall be responsible for providing the specified material, process or article. The burden of proof as to the equality of any material, process or article shall rest with Contractor.

The City has the complete and sole discretion to determine if a material, process or article is an “or equal” material, process or article that may be substituted. Data required to substantiate requests for substitutions of an “or equal” material, process or article data shall include a signed affidavit from Contractor stating that, and describing how, the substituted “or equal” material, process or article is equivalent to that specified in every way except as listed on the affidavit. Substantiating data shall include any and all illustrations, specifications, and other relevant data including catalog information which describes the requested substituted “or equal” material, process or article, and substantiates that it is an “or equal” to the material, process or 33 October 11, 2022
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article. The substantiating data must also include information regarding the durability and lifecycle cost of the requested substituted “or equal” material, process or article. Failure to submit all the required substantiating data, including the signed affidavit, to the City in a timely fashion will result in the rejection of the proposed substitution.

Contractor shall bear all of the City’s costs associated with the review of substitution requests. Contractor shall be responsible for all costs related to a substituted “or equal” material, process or article. Contractor is directed to the Special Conditions (if any) to review any findings made pursuant to Public Contract Code section 3400.

3.3 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Work under this Contract within 25 working days, beginning the effective date of the Notice to Proceed (“Contract Time”). Contractor shall perform its Work in strict accordance with any completion schedule, construction schedule or project milestones developed by the City. Such schedules or milestones may be included as part of Exhibits “A” or “B” attached hereto or may be provided separately in writing to Contractor. Contractor agrees that if such Work is not completed within the aforementioned Contract Time and/or pursuant to any such completion schedule, construction schedule or project milestones developed pursuant to provisions of the Contract, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of Seven Hundred and Fifty Dollars ($750.00) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule or Project milestones established pursuant to the Contract.

3.4 Standard of Performance; Performance of Employees. Contractor shall perform all Work under this Contract in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Work. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them.

Finally, Contractor represents that it, its employees, and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Work, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Contract. As provided for in the indemnification provisions of this Contract, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any work necessary to correct errors or omissions which are caused by Contractor’s failure to comply with the standard of care provided for herein. Any employee who is determined by the City to be uncooperative, incompetent, a threat to the safety of persons or the Work, or any employee who fails or refuses to perform the Work in a manner acceptable to the City, shall be promptly removed from the Project by Contractor and shall not be re-employed on the Work.

3.5 Control and Payment of Subordinates; Contractual Relationship. City retains Contractor on an independent contractor basis and Contractor is not an employee of City. Any additional personnel performing the work governed by this Contract on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Contract and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance. 34 October 11, 2022
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3.6 City’s Basic Obligation. City agrees to engage and does hereby engage Contractor as an independent contractor to furnish all materials and to perform all Work according to the terms and conditions herein contained for the sum set forth above. Except as otherwise provided in the Contract, the City shall pay to Contractor, as full consideration for the satisfactory performance by Contractor of the services and obligations required by this Contract, the below-referenced compensation in accordance with compensation provisions set forth in the Contract.

3.7 Compensation and Payment.

3.7.1 Amount of Compensation. As consideration for performance of the Work required herein, City agrees to pay Contractor the Total Contract Price of Two Million Nine Hundred Twenty-Eight Thousand One Hundred-Ten Dollars ($2,928,110) (“Total Contract Price”) provided that such amount shall be subject to adjustment pursuant to the applicable terms of this Contract or written change orders approved and signed in advance by the City.

3.7.2 Payment of Compensation. If the Work is scheduled for completion in thirty (30) or less calendar days, City will arrange for payment of the Total Contract Price upon completion and approval by City of the Work. If the Work is scheduled for completion in more than thirty (30) calendar days, City will pay Contractor on a monthly basis as provided for herein. On or before the fifth (5th) day of each month, Contractor shall submit to the City an itemized application for payment in the format supplied by the City indicating the amount of Work completed since commencement of the Work or since the last progress payment. These applications shall be supported by evidence which is required by this Contract and such other documentation as the City may require. The Contractor shall certify that the Work for which payment is requested has been done and that the materials listed are stored where indicated.

Contractor may be required to furnish a detailed schedule of values upon request of the City and in such detail and form as the City shall request, showing the quantities, unit prices, overhead, profit, and all other expenses involved to provide a basis for determining the amount of progress payments.

3.7.3 Prompt Payment. City shall review and pay all progress payment requests in accordance with the provisions set forth in Section 20104.50 of the California Public Contract Code. However, no progress payments will be made for Work not completed in accordance with this Contract. Contractor shall comply with all applicable laws, rules and regulations relating to the proper payment of its employees, subcontractors, suppliers or others.

3.7.4 Contract Retentions. From each approved progress estimate, five percent (5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All Contract retention shall be released and paid to Contractor and subcontractors pursuant to California Public Contract Code Section 7107.

3.7.5 Other Retentions. In addition to Contract retentions, the City may deduct from each progress payment an amount necessary to protect City from loss because of: (1) liquidated damages which have accrued as of the date of the application for payment; (2) any sums expended by the City in performing any of Contractor’s obligations under the Contract which Contractor has failed to perform or has performed inadequately; (3) defective Work not remedied; (4) stop notices as allowed by state law; (5) reasonable doubt that the Work can be completed for the unpaid balance of the Total Contract Price or within the scheduled completion date; (6) unsatisfactory prosecution of the Work by Contractor; (7) unauthorized deviations from the Contract; (8) failure of Contractor to maintain or submit on a timely basis proper and sufficient documentation as required by the Contract or by City during the prosecution of the Work; (9) erroneous or false estimates by Contractor of the value of the Work performed; (10) 35 October 11, 2022
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any sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Contract; and (11) any other sums which the City is entitled to recover from Contractor under the terms of the Contract or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City’s right to such sums.

3.7.6 Substitutions for Contract Retentions. In accordance with California Public Contract Code Section 22300, the City will permit the substitution of securities for any monies withheld by the City to ensure performance under the Contract. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in California as the escrow agent, and thereafter the City shall then pay such monies to Contractor as they come due. Upon satisfactory completion of the Contract, the securities shall be returned to Contractor. For purposes of this Section and Section 22300 of the Public Contract Code, the term “satisfactory completion of the contract” shall mean the time the City has issued written final acceptance of the Work and filed a Notice of Completion as required by law and provisions of this Contract. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. The escrow agreement used for the purposes of this Section shall be in the form provided by the City.

3.7.7 Title to Work. As security for partial, progress, or other payments, title to Work for which such payments are made shall pass to the City at the time of payment. To the extent that title has not previously been vested in the City by reason of payments, full title shall pass to the City at delivery of the Work at the destination and time specified in this Contract.

Such transferred title shall in each case be good, free and clear from any and all security interests, liens, or other encumbrances. Contractor promises and agrees that it will not pledge, hypothecate, or otherwise encumber the items in any manner that would result in any lien, security interest, charge, or claim upon or against said items. Such transfer of title shall not imply acceptance by the City, nor relieve Contractor from the responsibility to strictly comply with the Contract, and shall not relieve Contractor of responsibility for any loss of or damage to items.

3.7.8 Labor and Material Releases. Contractor shall furnish City with labor and material releases from all subcontractors performing work on, or furnishing materials for, the Work governed by this Contract prior to final payment by City.

3.7.9 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720 et seq., and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. Since the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify, and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Contractor 36 October 11, 2022
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and any subcontractor shall forfeit a penalty of up to $200 per calendar day or portion thereof for each worker paid less than the prevailing wage rates.

The Federal minimum wage rates as predetermined by the United States Secretary of Labor are hereby made a part of this contract.

3.7.10 Apprenticeable Crafts. When Contractor employs workmen in an apprenticeable craft or trade, Contractor shall comply with the provisions of Section 1777.5 of the California Labor Code with respect to the employment of properly registered apprentices upon public works. The primary responsibility for compliance with said section for all apprenticeable occupations shall be with Contractor. The Contractor or any subcontractor that is determined by the Labor Commissioner to have knowingly violated Section 1777.5 shall forfeit as a civil penalty an amount not exceeding $100 for each full calendar day of noncompliance, or such greater amount as provided by law.

3.7.11 Hours of Work. Contractor is advised that eight (8) hours labor constitutes a legal day’s work. Pursuant to Section 1813 of the California Labor Code, Contractor shall forfeit a penalty of $25.00 per worker for each day that each worker is permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week, except when payment for overtime is made at not less than one and one-half (1-1/2) times the basic rate for that worker.

3.7.12 Payroll Records. Contractor and each subcontractor shall keep an accurate payroll record, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. The payroll records shall be certified and shall be available for inspection at all reasonable hours at the principal office of Contractor in the manner provided in Labor Code section 1776. In the event of noncompliance with the requirements of this section, Contractor shall have 10 days in which to comply subsequent to receipt of written notice specifying in what respects such Contractor must comply with this section. Should noncompliance still be evident after such 10-day period, Contractor shall, as a penalty to City, forfeit not more than $100.00 for each calendar day or portion thereof, for each worker, until strict compliance is effectuated. The amount of the forfeiture is to be determined by the Labor Commissioner. A contractor who is found to have violated the provisions of law regarding wages on Public Works with the intent to defraud shall be ineligible to bid on Public Works contracts for a period of one to three years as determined by the Labor Commissioner. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payments then due. The responsibility for compliance with this section is on Contractor. The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3.7.13 Contractor and Subcontractor Registration. Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. No bid will be accepted, nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. Contractor is directed to review, fill out and execute the Public Works Contractor Registration Certification attached hereto as Exhibit “E” prior to contract execution. Notwithstanding the foregoing, the contractor registration requirements 37 October 11, 2022
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mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

3.7.14 Labor Compliance; Stop Orders. This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be the Contractor’s sole responsibility to evaluate and pay the cost of complying with all labor compliance requirements under this Contract and applicable law. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Work, including any delay, shall be Contractor’s sole responsibility.

Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay subject to any applicable liquidated damages and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.8 Performance of Work; Jobsite Obligations.

3.8.1 Water Quality Management and Compliance.

3.8.1.1 Water Quality Management and Compliance. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); local ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.

3.8.1.2 Compliance with the Statewide Construction General Permit. Contractor shall comply with all conditions of the most recent iteration of the National Pollutant Discharge Elimination System General Permit for Storm Water Discharges Associated with Construction Activity, issued by the California State Water Resources Control Board (“Permit”). It shall be Contractor’s sole responsibility to file a Notice of Intent and procure coverage under the Permit for all construction activity which results in the disturbance of more than one acre of total land area or which is part of a larger common area of development or sale. Prior to initiating work, Contractor shall be solely responsible for preparing and implementing a Storm Water Pollution Prevention Plan (SWPPP) as required by the Permit.

Contractor shall be responsible for procuring, implementing and complying with the provisions of the Permit and the SWPPP, including the standard provisions, and monitoring and reporting requirements as required by the Permit. The Permit requires the SWPPP to be a “living document” that changes as necessary to meet the conditions and requirements of the job site as it progresses through difference phases of construction and is subject to different weather conditions. It shall be Contractor’s sole responsibility to update the SWPPP as necessary to address conditions at the project site.

3.8.1.3 Other Water Quality Rules Regulations and Policies.

Contractor shall comply with the lawful requirements of any applicable municipality, drainage City, or local agency regarding discharges of storm water to separate storm drain systems or other watercourses under their jurisdiction, including applicable requirements in municipal storm water management programs.
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3.8.1.4 Cost of Compliance. Storm, surface, nuisance, or other waters may be encountered at various times during construction of The Work. Therefore, the Contractor, by submitting a Bid, hereby acknowledges that it has investigated the risk arising from such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities arising therefrom.

3.8.1.5 Liability for Non-Compliance. Failure to comply with the Permit is a violation of federal and state law. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to defend, indemnify and hold harmless the City and its directors, officials, officers, employees, volunteers and agents for any alleged violations. In addition, City may seek damages from Contractor for any delay in completing the Work in accordance with the Contract, if such delay is caused by or related to Contractor’s failure to comply with the Permit.

3.8.1.6 Reservation of Right to Defend. City reserves the right to defend any enforcement action brought against the City for Contractor’s failure to comply with the Permit or any other relevant water quality law, regulation, or policy. Pursuant to the indemnification provisions of this Contract, Contractor hereby agrees to be bound by, and to reimburse the City for the costs (including the City’s attorney’s fees) associated with, any settlement reached between the City and the relevant enforcement entity.

3.8.1.7 Training. In addition to the standard of performance requirements set forth in paragraph 3.4, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Work assigned to them without impacting water quality in violation of the laws, regulations and policies described in paragraph 3.8.1. Consultant further warrants that it, its employees and subcontractors will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in paragraph 3.8.1 as they may relate to the Work provided under this Agreement. Upon request, City will provide the Contractor with a list of training programs that meet the requirements of this paragraph.

3.8.2 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. Contractor shall comply with the requirements of the specifications relating to safety measures applicable in particular operations or kinds of work. In carrying out its Work, Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the Work and the conditions under which the Work is to be performed. Safety precautions as applicable shall include, but shall not be limited to, adequate life protection and lifesaving equipment; adequate illumination for underground and night operations; instructions in accident prevention for all employees, such as machinery guards, safe walkways, scaffolds, ladders, bridges, gang planks, confined space procedures, trenching and shoring, fall protection and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and adequate facilities for the proper inspection and maintenance of all safety measures.

Furthermore, Contractor shall prominently display the names and telephone numbers of at least two medical doctors practicing in the vicinity of the Project, as well as the telephone number of the local ambulance service, adjacent to all telephones at the Project site.

3.8.3 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Contract or the Work, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such 39 October 11, 2022
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laws and regulations in connection with Work. If Contractor observes that the drawings or specifications are at variance with any law, rule or regulation, it shall promptly notify the City in writing. Any necessary changes shall be made by written change order. If Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Contract to the same extent as though set forth herein and will be complied with.

Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Contract, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.8.4 Permits and Licenses. Contractor shall be responsible for securing City permits and licenses necessary to perform the Work described herein, including, but not limited to, a City Business License. While Contractor will not be charged a fee for any City permits, Contractor shall pay the City’s applicable business license fee. Any ineligible contractor or subcontractor pursuant to Labor Code Sections 1777.1 and 1777.7 may not perform work on this Project.

3.8.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more in depth, Contractor shall comply with all applicable provisions of the California Labor Code, including Section 6705. To this end, Contractor shall submit for City’s review and approval a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.

3.8.6 Hazardous Materials and Differing Conditions. As required by California Public Contract Code Section 7104, if this Contract involves digging trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of any conditions, notify City of: (1) any material discovered in excavation that Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II or Class III disposal site; (2) subsurface or latent physical conditions at the site differing from those indicated by City; and (3) unknown physical conditions of an unusual nature at the site, significantly different from those ordinarily encountered in such contract work. Upon notification, City shall promptly investigate the conditions to determine whether a change order is appropriate. In the event of a dispute, Contractor shall not be excused from any scheduled completion date and shall proceed with all Work to be performed under the Contract, but shall retain all rights provided by the Contract or by law for making protests and resolving the dispute.

3.8.7 Underground Utility Facilities. To the extent required by Section 4215 of the California Government Code, City shall compensate Contractor for the costs of: (1) locating and repairing damage to underground utility facilities not caused by the failure of Contractor to exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall not be assessed liquidated damages for delay caused by failure of City to provide for removal or relocation of such utility facilities.
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3.8.8 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Although CARB limits and requirements are broader, Contractor shall specifically be aware of their application to "portable equipment", which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.

3.8.9 State Recycling Mandates. Contractor shall comply with State Recycling Mandates. Any recyclable materials/debris collected by the contractor that can be feasibly diverted via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.

3.9 Completion of Work. When Contractor determines that it has completed the Work required herein, Contractor shall so notify City in writing and shall furnish all labor and material releases required by this Contract. City shall thereupon inspect the Work. If the Work is not acceptable to the City, the City shall indicate to Contractor in writing the specific portions or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed the incomplete or unsatisfactory Work, Contractor may request a reinspection by the City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to be paid, less any amount which City may be authorized or directed by law to retain. Payment of retention proceeds due to Contractor shall be made in accordance with Section 7107 of the California Public Contract Code.

3.10 Claims; Government Code Claim Compliance.

3.10.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims.

The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.

3.10.2 Claims. For purposes of this Section, “Claim” means a separate demand by the Contractor, after a change order duly requested in accordance with the terms of this Contract has been denied by the City, for (A) a time extension, (B) payment of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an amount the payment of which is disputed by the City. Claims governed by this Section may not be filed unless and until the Contractor completes all procedures for giving notice of delay or change and for the requesting of a time extension or change order, including but not necessarily limited to the change order procedures contained herein, and Contractor’s request for a change has been denied in whole or in part. Claims governed by this Section must be filed no later than the date of final payment. The claim shall be submitted in writing to the City and shall include on its first page the following in 16-point capital font: “THIS IS A CLAIM.” Furthermore, the claim shall include the documents necessary to substantiate the claim.

Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims, including all requirements pertaining to 41 October 11, 2022
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compensation or payment for extra Work, disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon.

3.10.3 Supporting Documentation. The Contractor shall submit all claims in the following format:

3.10.3.1 Summary of claim merit and price, reference Contract Document provisions pursuant to which the claim is made

3.10.3.2 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other

3.10.3.3 Chronology of events and correspondence

3.10.3.4 Analysis of claim merit

3.10.3.5 Analysis of claim cost

3.10.3.6 Time impact analysis in CPM format

3.10.4 City’s Response. Upon receipt of a claim pursuant to this Section, City shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the Contractor a written statement identifying what portion of the claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 days after the public entity issues its written statement.

3.10.4.1 If City needs approval from its governing body to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, City shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

3.10.4.2 Within 30 days of receipt of a claim, City may request in writing additional documentation supporting the claim or relating to defenses or claims City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.

3.10.4.3 City’s written response to the claim, as further documented, shall be submitted to the Contractor within 30 days (if the claim is less than $50,000, within 15 days) after receipt of the further documentation, or within a period of time no 42 October 11, 2022
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greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.

3.10.5 Meet and Confer. If the Contractor disputes City’s written response, or City fails to respond within the time prescribed, the Contractor may so notify City, in writing, either within 15 days of receipt of City’s response or within 15 days of City’s failure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, City shall schedule a meet and confer conference within 30 days for settlement of the dispute.

3.10.6 Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, City shall provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after City issues its written statement. Any disputed portion of the claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with City and the Contractor sharing the associated costs equally. City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing unless the parties agree to select a mediator at a later time.

3.10.6.1 If the Parties cannot agree upon a mediator, each Party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.

3.10.6.2 For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the Parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.

3.10.6.3 Unless otherwise agreed to by City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.

3.10.6.4 The mediation shall be held no earlier than the date the Contractor completes the Work or the date that the Contractor last performs Work, whichever is earlier. All unresolved claims shall be considered jointly in a single mediation, unless a new unrelated claim arises after mediation is completed.

3.10.7 Procedures After Mediation. If following the mediation, the claim or any portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written claim pursuant to subdivision (a) until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation.

3.10.8 Civil Actions. The following procedures are established for all civil actions filed to resolve claims subject to this Section:
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3.10.8.1 Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of these procedures. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.

3.10.8.2 If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code.

The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.

3.10.8.3 In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney’s fees on appeal of the other party.

3.10.9 Government Code Claims. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims, and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City. A Government Code claim must be filed no earlier than the date the work is completed or the date the Contractor last performs work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted.

3.10.10 Non-Waiver. City’s failure to respond to a claim from the Contractor within the time periods described in this Section or to otherwise meet the time requirements of this Section shall result in the claim being deemed rejected in its entirety. City’s failure to respond shall not waive City’s rights to any subsequent procedures for the resolution of disputed claims.

3.11 Loss and Damage. Except as may otherwise be limited by law, Contractor shall be responsible for all loss and damage which may arise out of the nature of the Work agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Work until the same is fully completed and accepted by City. In the event of damage proximately caused by an Act of God, as defined by Section 7105 of the Public Contract Code, the City may terminate this Contract pursuant to Section

3.17.3; provided, however, that the City needs to provide Contractor with only one (1) day advanced written notice.

3.12 Indemnification.
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3.12.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its officials, employees, agents and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor’s services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor’s indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misconduct of the City or the City’s agents, servants, or independent contractors who are directly responsible to the City, or for defects in design furnished by those persons.

3.12.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor's own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against City or its officials, employees, agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding.

Such reimbursement shall include payment for City's attorney's fees and costs, including expert witness fees. Contractor shall reimburse City and its officials, employees, agents and authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents and authorized volunteers.

3.13 Insurance.
(a) Required Coverage At all times commencing no later than commencement of the Work and to remain in effect for the entire term of this Agreement including any extensions of time, Contractor shall, at its expense, obtain and maintain, and shall cause its Subcontractors to obtain and maintain, with insurers of recognized responsibility authorized to do business in the California as admitted carriers having a rating not lower than “A” as rated by A.M. Best Company, Inc. or other independent rating companies, the following insurance which shall include the minimum coverages and limits set forth below:
(i) Commercial General Liability Insurance Commercial general liability insurance on an “occurrence” basis arising out of claims for bodily injury (including death) and property damage, as will protect the Contractor, which may arise out of or result from the Contractor’s operations under the Agreement and for which the Contractor legally liable, whether such operations are by the Contractor, by a Subcontractor, or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable. Such insurance shall protect the Contractor and Owner against loss from liability imposed for damages (1) on account of bodily or personal injuries, including death, disease and sickness, accidentally suffered or alleged to have been suffered by any person or persons that may be caused directly or indirectly by the performance of this Agreement, and (2) on account of injury 45 October 11, 2022
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to or destruction of property, including the resultant loss of use of the Project or other Owner facilities or equipment, resulting from acts of commission or omission by the Contractor, or otherwise resulting directly or indirectly from the Contractor’s operations in the performance of this Agreement. This insurance shall be subject to the approval of Owner, and Owner’s approval shall not be unreasonably withheld and shall be in amounts not less than Two Million Dollars ($2,000,000) general aggregate, Two Million Dollars ($2,000,000) personal and advertising injury aggregate, with a per occurrence limit of One Million Dollars ($1,000,000) (total limits required may be satisfied with an excess or umbrella policy). The comprehensive or commercial general liability policy shall also include a severability of interest clause and cross liability if the policy has multiple insureds. The aggregate limit shall apply on a “per project” basis. The policy shall stipulate that the insurance afforded the additional insureds shall apply as primary insurance and that any other insurance carried by Owner or other Persons identified in this Agreement will be excess only and will not contribute with this insurance. (ii) Automobile Liability. Automobile liability insurance, for Contractor’s liability arising out of claims for bodily injury and property damage covering all owned (if any), nonowned, leased, hired or borrowed automobiles of Contractor, including loading and unloading, with a minimum limit of not less than $1,000,000 per accident for combined bodily injury and property damage and containing appropriate no-fault insurance provisions or other endorsements in accordance with Applicable Law.
(iii) Worker’s Compensation Insurance All engineers, experts, Consultants and Subcontractors the Contractor intends to employ shall have taken out workers’ compensation insurance with an insurance carrier satisfactory to the Owner for all persons whom they may employ in carrying out the work contemplated under this Agreement in accordance with the Workers’ Compensation Laws of the State of California. If the Contractor employs any engineer, expert, Consultant or Subcontractor which it did not intend to employ prior to commencement of services, it must furnish such proof of workers’ compensation insurance to the Owner immediately upon employment. If the Contractor is self-insured, the Contractor shall furnish a Certificate of Permission to Self-Insure and a Certificate of Self-Insurance satisfactory to the Owner.
(iv) Employer’s Liability Insurance All engineers, experts, Consultants and Subcontractors the Contractor intends to employ shall have taken out employer’s liability insurance with an insurance carrier reasonably satisfactory to the Owner. During the course of Contractor’s services, if Contractor ever intends to employ additional or different Engineers, experts, Consultants or Subcontractors, before so employing them Contractor shall furnish such reasonably satisfactory proof of insurance to the Owner. If the Contractor is self-insured, the Contractor shall furnish a Certificate of Permission to Self-Insure and a Certificate of SelfInsurance reasonably satisfactory to the Owner. (v) Errors and Omissions Insurance Errors and omissions insurance on a claims made basis with limits of at least One Million Dollars ($1,000,000) with a deductible or selfinsured retention in an amount not to exceed the sum of One Hundred Thousand Dollars ($100,000), and Contractor will maintain such coverage for a period of five (5) years following the Final Completion Date.
(vi) Builder’s All-Risk Following completion of Phase 1 and approval by Owner of the Phase 2 portion of the Scope of Work and prior to commencing Phase 2, Contractor agrees to obtain and maintain Builder’s Risk/Course-of-Construction insurance, issued on a completed value basis on all insurable Work included under the Contract Documents. This insurance shall be subject to the approval of Owner, and Owner’s approval shall not be unreasonably withheld. 46 October 11, 2022
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This insurance shall insure against all risks, including but not limited to the following perils:
vandalism, theft, malicious mischief, fire, sprinkler leakage, civil authority, sonic boom, explosion, collapse, flood, wind, hail, lightning, smoke, riot or civil commotion, debris removal (including demolition) and reasonable compensation for the Owner’s costs and expenses required because of such insured loss. This insurance shall provide coverage in an amount not less than the full cost to repair, replace, or reconstruct the Work. Such insurance shall include the Owner, the Owner’s designated representative, and any other person or entity with an insurable interest in the Work as an additional named insured. (vii) Other Insurance Contractor shall provide all other insurance required to be maintained under Applicable Laws, ordinances, rules, and regulations. Such insurance shall be subject to the approval of Owner, and Owner’s approval shall not be unreasonably withheld. (b) Consultants If not covered by Contractor’s coverage, each of Contractor’s Consultants shall carry coverage and limits proportionate to each such Consultant’s scope of work, and Contractor shall include such provisions in its contracts with them. If any policy carried by any of the Consultants offers 50% or less of the limits required of the Contractor hereunder for an analogous policy, the Contractor shall notify the Owner of the proposed coverage to be carried by such Consultant, and the Owner shall have the right in its reasonable discretion to approve or reject the proposed coverage in each such case. (c) Occupancy Owner may partially or fully occupy and/or use the Project before acceptance of the entire Project by the Owner. All of Contractor’s required insurance must allow such occupancy and/or use without prior consent from insurer. (d) Additional Insured; Primary and Non-Contributory; Waiver of Subrogation The Contractor shall name the Owner and the Owner’s designated representative as additional insureds on Contractor’s commercial general liability (using ISO CG 20 10 and CG 20 37 or exact equivalents), automobile liability, and excess/umbrella policies. The additional insured endorsement(s) included on all such insurance policies shall state that coverage is afforded the additional insured with respect to claims arising out of operations performed by or on behalf of the insured. If the additional insureds have other insurance which is applicable to the loss, such other insurance shall be on an excess or contingent basis. The amount of the insurer’s liability shall not be reduced by the existence of such other insurance. The coverage provided the additional insureds on Contractor’s commercial general liability, automobile liability, and excess/umbrella policies shall apply on a primary and non-contributory basis. The Contractor’s commercial general liability, automobile liability, excess/umbrella, and workers’ compensation/employer’s liability policies shall be endorsed to include a waiver of subrogation in favor of Owner and the Owner’s designated representatives. Any excess/umbrella policies provided by Contractor shall include a follow form endorsement or schedule of underlying coverage showing that such policies sit in excess of and shall follow the form of the underlying policies set forth herein, which Contractor intends the excess/umbrella policy to supplement. (e) Proof of Carriage of Insurance The Contractor shall not commence Work nor shall it allow any Subcontractor or Consultant to commence Work under this Agreement until all required insurance certificates, additional insured endorsements and declarations pages have been obtained for the period covered by this Agreement and delivered in duplicate to the Owner for approval, and such approval shall not be unreasonably withheld. (f) Notice of Cancellation or Non-Renewal The Contractor shall provide or shall obligate its insurance carriers or brokers/representatives to provide for thirty (30) Days written notice to the Owner of cancellation.
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(g) Project Schedule Changes At the time of making application for any extension of time pursuant to the Contract Documents, Contractor shall submit evidence that insurance policies will be in effect during the requested additional period of time. (h) Compliance If the Contractor fails to maintain such insurance or fails to cure any defects in coverage required herein within five (5) Days of receiving written notice of the defect(s), the Owner may, but shall not be required to, take out such insurance to cover any damages accrued for which the Owner might be held liable on account of the Contractor’s failure to pay such damages, and deduct and retain the amount of the premiums from any sums due the Contractor under this Agreement.
(i) No Limitation of Liability; Subcontractors and Consultant Obligations Nothing contained in this Agreement shall be construed as limiting, in any way, the extent to which the Contractor may be held responsible for the payment of damages resulting from the Contractor’s operations. Each of Contractor’s Consultants and Subcontractors shall comply with all insurance obligations under this Section, and Contractor shall include such provisions in its contracts with them.

3.13.1 Time for Compliance. Contractor shall not commence Work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Contract for cause.

3.13.2 Minimum Requirements. Contractor shall, at its expense, procure and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees or subcontractors. Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Contract. Such insurance shall meet at least the following minimum levels of coverage:

3.13.2.1 Minimum Scope of Insurance. Coverage shall be
at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 00 01) OR Insurance Services Office Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage for operations of designated contractor); (2) Automobile Liability:

Insurance Services Office Business Auto Coverage form number CA 00 01, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. Policies shall not contain exclusions contrary to this Contract.

3.13.2.2 Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence and $2,000,000 aggregate for bodily injury, personal injury and property damage; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ compensation limits as required by the Labor Code of the State of California.

Employer’s Liability limits of $1,000,000 each accident, policy limit bodily injury or disease, and each employee bodily injury or disease. Defense costs shall be available in addition to the limits. Notwithstanding the minimum limits specified herein, any available coverage shall be provided to the parties required to be named as additional insureds pursuant to this Contract. 48 October 11, 2022
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3.13.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements (amendments) on forms supplied or approved by the City to add the following provisions to the insurance policies:

3.13.3.1 General Liability. (1) Such policy shall give the City, its officials, employees, agents and authorized volunteers additional insured status using ISO endorsements CG20 10 10 01 plus CG20 37 10 01, or endorsements providing the exact same coverage, with respect to the Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such work; (2) all policies shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the insurance coverage shall be primary insurance as respects the City, its officials, employees, agents and authorized volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its officials, employees, agents and authorized volunteers shall be excess of Contractor’s insurance and shall not be called upon to contribute with it.

3.13.3.2 Automobile Liability. (1) Such policy shall give the City, its officials, employees, agents and authorized volunteers additional insured status with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by Contractor or for which Contractor is responsible; (2) all policies shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the insurance coverage shall be primary insurance as respects the City, its officials, employees, agents and authorized volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its officials, employees, agents and authorized volunteers shall be excess of Contractor’s insurance and shall not be called upon to contribute with it in any way.

3.13.3.3 Workers’ Compensation and Employer’s Liability Coverage. The insurer shall agree to waive all rights of subrogation against the City, its officials, employees, agents and authorized volunteers for losses paid under the terms of the insurance policy which arise from work performed by Contractor.

3.13.3.4 All Coverages. Each insurance policy required by this Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its officials, employees, agents and authorized volunteers.

3.13.4 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its officials, employees, agents and authorized volunteers.

3.13.5 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such 49 October 11, 2022
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deductibles or self-insured retentions as respects the City, its officials, employees, agents and authorized volunteers; or (2) the Contractor shall procure a bond or other financial guarantee acceptable to the City guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

3.13.6 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VII, licensed to do business in California, and satisfactory to the City. Exception may be made for the State Compensation Insurance Fund when not specifically rated.

3.13.7 Verification of Coverage. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Contract on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf and shall be on forms supplied or approved by the City. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

3.13.8 Subcontractors. All subcontractors shall meet the requirements of this Section before commencing Work. Contractor shall furnish separate certificates and endorsements for each subcontractor. Subcontractor policies of General Liability insurance shall name the City, its officials, employees, agents, and authorized volunteers as additional insureds using form ISO 20 38 04 13 or endorsements providing the exact same coverage. All coverages for subcontractors shall be subject to all of the requirements stated herein except as otherwise agreed to by the City in writing.

3.13.9 Reporting of Claims. Contractor shall report to the City, in addition to Contractor’s insurer, any and all insurance claims submitted by Contractor in connection with the Work under this Contract.

3.14 Bond Requirements.

3.14.1 Payment Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Payment Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.

3.14.2 Performance Bond. If specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Performance Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.

3.14.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, Contractor shall renew or replace the effected bond within (ten) 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Contract until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the Total Contract Price is increased in accordance with the Contract, Contractor shall, upon request of the City, cause the amount of 50 October 11, 2022
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the bond to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. If Contractor fails to furnish any required bond, the City may terminate the Contract for cause.

3.14.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.15 Warranty. Contractor warrants all Work under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the Work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Work or non-conformance of the Work to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Work (or work of other contractors) damaged by its defective Work or which becomes damaged in the course of repairing or replacing defective Work. For any Work so corrected, Contractor’s obligation hereunder to correct defective Work shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected Work. Contractor shall perform such tests as the City may require verifying that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the Work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. If Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming Work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.16 Employee/Labor Certifications.

3.16.1 Contractor’s Labor Certification. By its signature hereunder, Contractor certifies that he is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Work. A certification form for this purpose, which is attached to this Contract as Exhibit “D” and incorporated herein by reference, shall be executed simultaneously with this Contract.
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3.16.2 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

3.16.3 Verification of Employment Eligibility. By executing this Contract, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.

3.17 General Provisions.

3.17.1 City’s Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Contract (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.17.2 Contractor’s Representative. Before starting the Work, Contractor shall submit in writing the name, qualifications and experience of its proposed representative who shall be subject to the review and approval of the City (“′Contractor’s Representative”).

Following approval by the City, Contractor’s Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Contract. Contractor’s Representative shall supervise and direct the Work, using his best skill and attention, and shall be responsible for all construction means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Work under this Contract. Contractor’s Representative shall devote full time to the Project and either he or his designee, who shall be acceptable to the City, shall be always present at the Work site that any Work is in progress and at any time that any employee or subcontractor of Contractor is present at the Work site.

Arrangements for responsible supervision, acceptable to the City, shall be made for emergency Work which may be required. Should Contractor desire to change its Contractor’s Representative, Contractor shall provide the information specified above and obtain the City’s written approval.

3.17.3 Termination. This Contract may be terminated by City at any time, with our without cause, by giving Contractor three (3) days advance written notice. In the event of termination by City for any reason other than the fault of Contractor, City shall pay Contractor for all Work performed up to that time as provided herein. In the event of breach of the Contract by Contractor, City may terminate the Contract immediately without notice, may reduce payment to Contractor in the amount necessary to offset City’s resulting damages, and may pursue any other available recourse against Contractor. Contractor may not terminate this Contract except for cause. In the event this Contract is terminated in whole or in part as provided, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. Further, if this Contract is terminated as provided, City may require Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by Contractor in connection with its performance of this Contract.

3.17.4 Contract Interpretation. Should any question arise regarding the meaning or import of any of the provisions of this Contract or written or oral instructions from City, the 52 October 11, 2022
Section 21 Water Mains Replacement 22
matter shall be referred to City’s Representative, whose decision shall be binding upon Contractor.

3.17.5 Anti-Trust Claims. This provision shall be operative if this Contract is applicable to California Public Contract Code Section 7103.5. In entering into this Contract to supply goods, services or materials, Contractor hereby offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tender final payment to Contractor, without further acknowledgment by the Parties.

3.17.6 Notices. All notices hereunder and communications regarding interpretation of the terms of the Contract or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows:

CONTRACTOR:

Lyles Utility Construction. LLC
525 W. Alluvial Avenue
Fresno, California 93711
(559) 441-1900
Attn: Bradley E. Zeimet Sr. Vice President
CITY:

City of California City
21000 Hacinda Blvd
California City, California 93505
Attn: City Manager
Any notice so given shall be considered received by the other Party three (3) days after deposit in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.17.7 Time of Essence. Time is of the essence in the performance of this Contract.

3.17.8 Assignment Forbidden. Contractor shall not, either voluntarily or by action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by Contractor herein without the prior written consent of City. If Contractor attempts an assignment or transfer of this Contract or any obligation, right, title or interest herein, City may, at its option, terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to Contractor or its assignee or transferee.

3.17.9 No Third Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

3.17.10 Laws, Venue, and Attorneys’ Fees. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to 53 October 11, 2022
Section 21 Water Mains Replacement 23
interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Merced, State of California.

3.17.11 Counterparts. This Contract may be executed in counterparts, each of which shall constitute an original.

3.17.12 Successors. The Parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract.

3.17.13 [Reserved]

3.17.14 Solicitation. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Contract. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, City shall have the right to terminate this Contract without liability.

3.17.15 Conflict of Interest. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Contract, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Contract, or obtain any present or anticipated material benefit arising therefrom. In addition, Contractor agrees to file, or to cause its employees or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Work.

3.17.16 Certification of License.

3.17.16.1 Contractor certifies that as of the date of execution of this Contract, Contractor has a current contractor’s license of the classification indicated below under Contractor’s signature.

3.17.16.2 Contractors are required by law to be licensed and regulated by the Contractors’ State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California 95826.

3.17.17 Authority to Enter Contract. Each Party warrants that the individuals who have signed this Contract have the legal power, right and authority to make this Contract and bind each respective Party.
54 October 11, 2022
Section 21 Water Mains Replacement 24

3.17.18 Entire Contract; Modification. This Contract contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Contract may only be modified by a writing signed by both Parties.

3.17.19 Non-Waiver. None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.

3.17.20 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project or other projects.

SIGNATURES FOR CONSTRUCTION CONTRACT

BETWEEN THE CITY OF CALIFORNIA CITY
AND LYLES UTILITY CONSTRUCTION. LLC
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the _11th_ day of October, 2022.

CITY OF CALIFORNIA CITY LYLES UTILITY CONSTRUCTION, LLC By: By:

Dr. Jim Hart
Interim City Manager Its:

Printed Name:

ATTEST:

By:

Socorro Chavez, City Clerk
55 October 11, 2022
Section 21 Water Mains Replacement 25
EXHIBIT “A”

SERVICES / SCHEDULE
See Plans and Specifications, incorporated herein by this reference. 56 October 11, 2022
Section 21 Water Mains Replacement 26
EXHIBIT “B”

PLANS AND SPECIFICATIONS
See Plans and Specifications, incorporated herein by this reference. 57 October 11, 2022
Section 21 Water Mains Replacement 27
EXHIBIT “C”

SPECIAL CONDITIONS
ARTICLE 1. BONDS
Within ten (10) calendar days from the date the Contractor is notified of award of the Contract, the Contractor shall deliver to the City two (2) identical counterparts of the Performance Bond and Payment Bond on the forms supplied by the City and included as Exhibit “F” to the Contract. Failure to do so may, in the sole discretion of City, result in the forfeiture of Contractor’s bid security. The surety supplying the bond must be an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of California and satisfactory to the City. The Performance Bond and the Payment Bond shall be for one hundred percent (100%) of the Total Contract Price. 58 October 11, 2022
Section 21 Water Mains Replacement 28
EXHIBIT “D”

CERTIFICATION
LABOR CODE - SECTION 1861
I, the undersigned Contractor, am aware of the provisions of Section 3700, et seq., of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of the Code, and I, the undersigned Contractor, agree to and will comply with such provisions before commencing the performance of the Work on this Contract.

LYLES UTILITY CONSTRUCTION. LLC
By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
59 October 11, 2022
Section 21 Water Mains Replacement 29
EXHIBIT “E”

PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See http://www.dir.ca.gov/PublicWorks/PublicWorks.html for additional information.

No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work.

Contractor hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations.1
Name of Contractor:_______________________________
DIR Registration Number:__________________________
DIR Registration Expiration:_________________________
Small Project Exemption: _____ Yes or _____ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further acknowledges:
 Contractor shall maintain a current DIR registration for the duration of the project.  Contractor shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project.
 Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non-responsive.

Name of Contractor__________________________________________ Signature__________________________________________________ Name and Title_____________________________________________ Dated___________________________

1 If the Project is exempt from the contractor registration requirements pursuant to the small project exemption under Labor Code Sections 1725.5 and 1771.1, please mark “Yes” in response to “Small Project Exemption.” 60 October 11, 2022
Section 21 Water Mains Replacement 30
EXHIBIT “F”

PAYMENT AND PERFORMANCE BONDS
61 October 11, 2022
Section 21 Water Mains Replacement 31

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of California City (hereinafter referred to as “City”) has awarded to LYLES UTILITY CONSTRUCTION, LLC, (hereinafter referred to as the “Contractor”) an agreement for SECTION 21 WATER MAINS REPLACEMENT PROJECT, (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated 10/11/2022, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, LYLES UTILITY CONSTRUCTION, LLC, the undersigned Contractor and
_____________________________________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of Two Million Nine Hundred Twenty-Eight Thousand One Hundred-Ten Dollars ($2,928,110)said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officers and agents, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15. 62 October 11, 2022
Section 21 Water Mains Replacement 32
Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.

Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__).
(Corporate Seal)
Contractor/ Principal
63 October 11, 2022
Section 21 Water Mains Replacement 33
By
Title

(Corporate Seal) Surety
By
Attorney-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety) ___________________________________________ ___________________________________________
___________________________________________
(Name and Address of Agent or ___________________________________________ Representative for service of
process in California, if different ___________________________________________ from above)
___________________________________________
(Telephone number of Surety and ___________________________________________ Agent or Representative for service
of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
64 October 11, 2022
Section 21 Water Mains Replacement 34
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
65 October 11, 2022
Section 21 Water Replacement Project
35 PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of California City (hereinafter designated as the “City”), by action taken or a consent agenda item passed October 11, 2022 has awarded to LYLES UTILITY CONSTRUCTION, LLC, hereinafter designated as the “Principal,” a contract for the work described as follows:

SECTION 21 WATER MAINS REPLACEMENT PROJECT (the “Project”); and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated 10/11/2022, (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________________________ as Surety, are held and firmly bound unto the City in the penal sum of Two Million Nine Hundred Twenty-Eight Thousand One Hundred-Ten Dollars ($2,928,110), lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified.

This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the 66 October 11, 2022
Section 21 Water Replacement Project
36 full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title

(Corporate Seal) Surety
By
Attorney-in-Fact
Title
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto.

NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
67 October 11, 2022
Section 21 Water Replacement Project
37 Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
68 October 11, 2022
Section 21 Water Replacement Project
38 FEDERAL MINIMUM WAGE RATES
Note: If there is a difference between the minimum wage rates predetermined by the U.S. Department of Labor and the general prevailing wage rates determined by the Director of the California Department of Industrial Relations for similar classifications of labor, the Contractor and subcontractors shall pay not less than the higher wage rate. 69 October 11, 2022
Section 21 Water Replacement Project
39 "General Decision Number: CA20220020 09/02/2022
Superseded General Decision Number: CA20210020
State: California
Construction Types: Building, Heavy (Heavy and Dredging) and Highway
Counties: Inyo, Kern and Mono Counties in California.

BUILDING CONSTRUCTION PROJECTS; DREDGING PROJECTS (does not include hopper dredge work); HEAVY CONSTRUCTION PROJECTS (does not include water well drilling); HIGHWAY CONSTRUCTION PROJECTS.

Note: Contracts subject to the Davis-Bacon Act are generally required to pay at least the applicable minimum wage rate required under Executive Order 14026 or Executive Order 13658.

Additional information on contractor requirements and worker protections under the Executive Orders is available at
70 October 11, 2022
Section 21 Water Replacement Project
40 https://www.dol.gov/agencies/whd/government-contracts.

Modification Number Publication Date
0 01/07/2022
1 01/14/2022
2 01/21/2022
3 02/11/2022
4 02/18/2022
5 02/25/2022
6 04/01/2022
7 04/08/2022
8 04/29/2022
9 08/05/2022
10 08/12/2022
11 08/19/2022
12 09/02/2022
ASBE0005-001 09/01/2021

INYO AND KERN
Rates Fringes
Fire Stop Technician
(Application of Firestopping
Materials for wall openings
and penetrations in walls,
floors, ceilings and curtain
walls)...........................$ 32.09 19.66
Insulator/asbestos worker
(Includes the application of
all insulating materials,
protective coverings,
coatings & finishes to all
types of mechanical systems).....$ 47.25 24.45
---------------------------------------------------------------- ASBE0005-005 07/05/2021

INYO AND KERN
Rates Fringes
Asbestos Removal
worker/hazardous material
handler (Includes
preparation, wetting,
stripping, removal,
scrapping, vacuuming, bagging
and disposing of all
insulation materials from
mechanical systems, whether
they contain asbestos or not)....$ 22.40 13.07
---------------------------------------------------------------- ASBE0016-003 01/01/2021
MONO
Rates Fringes
Asbestos Workers/Insulator
71 October 11, 2022
Section 21 Water Replacement Project
41 (Includes the application of
all insulating materials,
protective coverings,
coatings, and finishes to all
types of mechanical systems).....$ 46.81 33.50
---------------------------------------------------------------- BOIL0092-005 01/01/2021

INYO AND KERN
Rates Fringes
BOILERMAKER......................$ 46.03 38.81
---------------------------------------------------------------- BOIL0549-003 01/01/2021

MONO COUNTY
Rates Fringes
BOILERMAKER......................$ 45.60 38.99
---------------------------------------------------------------- * BRCA0004-005 05/01/2020
Rates Fringes
BRICKLAYER; MARBLE SETTER........$ 41.52 18.47
*The wage scale for prevailing wage projects performed in Blythe, China lake, Death Valley, Fort Irwin, Twenty-Nine Palms, Needles and 1-15 corridor (Barstow to the Nevada State Line) will be Three Dollars ($3.00) above the
standard San Bernardino/Riverside County hourly wage rate ---------------------------------------------------------------- BRCA0018-010 09/01/2021
Rates Fringes
TERRAZZO FINISHER................$ 35.43 14.10
TERRAZZO WORKER/SETTER...........$ 43.61 14.63
---------------------------------------------------------------- BRCA0018-011 06/01/2021
Rates Fringes
TILE LAYER.......................$ 43.09 18.31
---------------------------------------------------------------- BRCA0018-012 06/01/2019
KERN
Rates Fringes
MARBLE FINISHER..................$ 33.43 14.11
TILE FINISHER....................$ 28.23 12.65
---------------------------------------------------------------- CARP0213-002 07/01/2021
Rates Fringes
72 October 11, 2022
Section 21 Water Replacement Project
42 Diver
(1) Wet.....................$ 834.40 16.28
(2) Standby.................$ 445.84 16.28
(3) Tender..................$ 437.84 16.28
(4) Assistant Tender........$ 413.84 16.28
Amounts in ""Rates' column are per day
---------------------------------------------------------------- CARP0213-004 07/01/2021
Rates Fringes
Drywall
DRYWALL INSTALLER/LATHER....$ 51.60 16.28
STOCKER/SCRAPPER............$ 22.16 8.62
---------------------------------------------------------------- CARP0661-001 07/01/2021
Rates Fringes

CARPENTER
(01) Carpenter, cabinet
installer, insulation
installer, floor worker
and acoustical installer....$ 51.03 16.28
(02) Millwright............$ 52.10 16.48
(03) Piledrivermen;
Derrick barge; Bridge or
Dock Carpenter; Heavy
framer; Rockslinger; Rock
Bargeman; Scowman...........$ 51.73 16.28
(04) Shingler (Commercial).$ 51.17 16.28
(05) Table Power Saw
Operator....................$ 52.13 16.28
(06) Pneumatic Nailer or
Power Stapler...............$ 51.29 16.28
(07) Roof Loader of
Shingles (Commercial).......$ 38.92 16.28
(08) Saw Filer.............$ 51.03 16.28
(09) Scaffold Builder......$ 42.80 16.28
FOOTNOTE: Work of forming in the construction of open cut sewers or storm drains, on operations in which horizontal lagging is used in conjunction with steel H-Beams driven or placed in pre-drilled holes, for that portion of a lagged trench against which concrete is poured, namely, as a
substitute for back forms (which work is performed by
piledrivers): $0.13 per hour additional.
---------------------------------------------------------------- CARP0721-001 07/01/2021
Rates Fringes
Modular Furniture Installer......$ 21.85 7.15
---------------------------------------------------------------- ELEC0428-001 01/01/2022
Rates Fringes

CABLE SPLICER
73 October 11, 2022
Section 21 Water Replacement Project
43 China Lake Naval Weapons
Center, Edwards AFB.........$ 59.48 3%+19.69
Remainder of Kern County....$ 52.42 3%+19.69

ELECTRICIAN
China Lake Naval Weapons
Center, Edwards AFB.........$ 54.71 3%+19.69
Remainder of Kern County....$ 47.65 3%+19.69
---------------------------------------------------------------- ELEC0428-003 12/27/2021

COMMUNICATIONS AND SYSTEMS WORK

KERN COUNTY
Rates Fringes
Communications System
Installer
China Lake Naval Weapons
Center.....................$ 46.95 3%+19.14
Edwards AFB................$ 43.44 3%+19.14
KERN COUNTY................$ 37.31 3%+19.14
SCOPE OF WORK:

Installation, testing, service and maintenance of systems utilizing the transmission and/or transference of voice, sound, vision and digital for commercial, educational,
security and entertainment purposes for the following: TV monitoring and surveillance, background-foreground music, intercom and telephone interconnect, inventory control
systems, microwave transmission, multi-media, multiplex, nurse call systems, radio page, school intercom and sound, burglar alarms, fire alarm (see last paragraph below) and low voltage master clock systems in commercial buildings.

Communication Systems that transmit or receive information and/or control systems that are intrinsic to the above
listed systems; inclusion or exclusion of terminations and testings of conductors determined by their function;
excluding all other data systems or multiple systems which include control function or power supply; excluding
installation of raceway systems, conduit systems, line
voltage work, and energy management systems. Fire alarm work shall be performed at the current inside wireman total cost package.
---------------------------------------------------------------- ELEC0477-001 06/01/2021

INYO AND MONO
Rates Fringes
ELECTRICIAN......................$ 45.75 3%+25.33
CABLE SPLICER: $1.50 above Electrician.

TUNNEL WORK: 10% above Electrician.
---------------------------------------------------------------- ELEC1245-001 06/01/2022
Rates Fringes
74 October 11, 2022
Section 21 Water Replacement Project
44 LINE CONSTRUCTION
(1) Lineman; Cable splicer..$ 64.40 22.58
(2) Equipment specialist
(operates crawler
tractors, commercial motor
vehicles, backhoes,
trenchers, cranes (50 tons
and below), overhead &
underground distribution
line equipment).............$ 50.00 21.30
(3) Groundman...............$ 38.23 20.89
(4) Powderman...............$ 51.87 18.79
HOLIDAYS: New Year's Day, M.L. King Day, Memorial Day,
Independence Day, Labor Day, Veterans Day, Thanksgiving Day and day after Thanksgiving, Christmas Day
---------------------------------------------------------------- ELEV0018-001 01/01/2022
Rates Fringes
ELEVATOR MECHANIC................$ 61.34 36.885+a+b
FOOTNOTE:
a. PAID VACATION: Employer contributes 8% of regular hourly rate as vacation pay credit for employees with more than 5 years of service, and 6% for 6 months to 5 years of service. b. PAID HOLIDAYS: New Year's Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, Friday after Thanksgiving, and Christmas Day.
---------------------------------------------------------------- ENGI0012-003 07/01/2020
Rates Fringes
OPERATOR: Power Equipment
(All Other Work)
GROUP 1....................$ 48.25 27.20
GROUP 2....................$ 49.03 27.20
GROUP 3....................$ 49.32 27.20
GROUP 4....................$ 50.81 27.20
GROUP 5....................$ 48.96 25.25
GROUP 6....................$ 51.03 27.20
GROUP 8....................$ 51.14 27.20
GROUP 9....................$ 49.29 25.25
GROUP 10....................$ 51.26 27.20
GROUP 11....................$ 49.41 25.25
GROUP 12....................$ 51.43 27.20
GROUP 13....................$ 51.53 27.20
GROUP 14....................$ 51.56 27.20
GROUP 15....................$ 51.64 27.20
GROUP 16....................$ 51.76 27.20
GROUP 17....................$ 51.93 27.20
GROUP 18....................$ 52.03 27.20
GROUP 19....................$ 52.14 27.20
GROUP 20....................$ 52.26 27.20
GROUP 21....................$ 52.43 27.20
GROUP 22....................$ 52.53 27.20
75 October 11, 2022
Section 21 Water Replacement Project
45 GROUP 23....................$ 52.64 27.20
GROUP 24....................$ 52.76 27.20
GROUP 25....................$ 52.93 27.20
OPERATOR: Power Equipment
(Cranes, Piledriving &
Hoisting)
GROUP 1....................$ 49.60 27.20
GROUP 2....................$ 50.38 27.20
GROUP 3....................$ 50.67 27.20
GROUP 4....................$ 50.81 27.20
GROUP 5....................$ 51.03 27.20
GROUP 6....................$ 51.14 27.20
GROUP 7....................$ 51.26 27.20
GROUP 8....................$ 51.43 27.20
GROUP 9....................$ 51.60 27.20
GROUP 10....................$ 52.60 27.20
GROUP 11....................$ 53.60 27.20
GROUP 12....................$ 54.60 27.20
GROUP 13....................$ 55.60 27.20
OPERATOR: Power Equipment
(Tunnel Work)
GROUP 1....................$ 50.10 27.20
GROUP 2....................$ 50.88 27.20
GROUP 3....................$ 51.17 27.20
GROUP 4....................$ 51.31 27.20
GROUP 5....................$ 51.53 27.20
GROUP 6....................$ 51.64 27.20
GROUP 7....................$ 51.76 27.20
PREMIUM PAY:
$3.75 per hour shall be paid on all Power Equipment Operator work on the followng Military Bases: China Lake Naval
Reserve, Vandenberg AFB, Point Arguello, Seely Naval Base, Fort Irwin, Nebo Annex Marine Base, Marine Corp Logistics Base Yermo, Edwards AFB, 29 Palms Marine Base and Camp
Pendleton
Workers required to suit up and work in a hazardous material environment: $2.00 per hour additional. Combination mixer and compressor operator on gunite work shall be classified as a concrete mobile mixer operator.

SEE ZONE DEFINITIONS AFTER CLASSIFICATIONS

POWER EQUIPMENT OPERATORS CLASSIFICATIONS
GROUP 1: Bargeman; Brakeman; Compressor operator; Ditch Witch, with seat or similar type equipment; Elevator
operator-inside; Engineer Oiler; Forklift operator
(includes loed, lull or similar types under 5 tons;
Generator operator; Generator, pump or compressor plant operator; Pump operator; Signalman; Switchman
GROUP 2: Asphalt-rubber plant operator (nurse tank operator); Concrete mixer operator-skip type; Conveyor operator;
Fireman; Forklift operator (includes loed, lull or similar types over 5 tons; Hydrostatic pump operator; oiler crusher (asphalt or concrete plant); Petromat laydown machine; PJU side dum jack; Screening and conveyor machine operator (or similar types); Skiploader (wheel type up to 3/4 yd.
without attachment); Tar pot fireman; Temporary heating 76 October 11, 2022
Section 21 Water Replacement Project
46 plant operator; Trenching machine oiler
GROUP 3: Asphalt-rubber blend operator; Bobcat or similar type (Skid steer); Equipment greaser (rack); Ford Ferguson (with dragtype attachments); Helicopter radioman (ground); Stationary pipe wrapping and cleaning machine operator
GROUP 4: Asphalt plant fireman; Backhoe operator (mini-max or similar type); Boring machine operator; Boxman or mixerman (asphalt or concrete); Chip spreading machine operator; Concrete cleaning decontamination machine operator;
Concrete Pump Operator (small portable); Drilling machine operator, small auger types (Texoma super economatic or similar types - Hughes 100 or 200 or similar types -
drilling depth of 30' maximum); Equipment greaser (grease truck); Guard rail post driver operator; Highline cableway signalman; Hydra-hammer-aero stomper; Micro Tunneling
(above ground tunnel); Power concrete curing machine
operator; Power concrete saw operator; Power-driven jumbo form setter operator; Power sweeper operator; Rock Wheel Saw/Trencher; Roller operator (compacting); Screed operator (asphalt or concrete); Trenching machine operator (up to 6 ft.); Vacuum or much truck

GROUP 5: Equipment Greaser (Grease Truck/Multi Shift).

GROUP 6: Articulating material hauler; Asphalt plant
engineer; Batch plant operator; Bit sharpener; Concrete joint machine operator (canal and similar type); Concrete planer operator; Dandy digger; Deck engine operator;
Derrickman (oilfield type); Drilling machine operator,
bucket or auger types (Calweld 100 bucket or similar types - Watson 1000 auger or similar types - Texoma 330, 500 or 600 auger or similar types - drilling depth of 45'
maximum); Drilling machine operator; Hydrographic seeder machine operator (straw, pulp or seed), Jackson track
maintainer, or similar type; Kalamazoo Switch tamper, or similar type; Machine tool operator; Maginnis internal full slab vibrator, Mechanical berm, curb or gutter(concrete or asphalt); Mechanical finisher operator (concrete,
Clary-Johnson-Bidwell or similar); Micro tunnel system
(below ground); Pavement breaker operator (truck mounted); Road oil mixing machine operator; Roller operator (asphalt or finish), rubber-tired earth moving equipment (single engine, up to and including 25 yds. struck); Self-propelled tar pipelining machine operator; Skiploader operator
(crawler and wheel type, over 3/4 yd. and up to and
including 1-1/2 yds.); Slip form pump operator (power
driven hydraulic lifting device for concrete forms);
Tractor operator-bulldozer, tamper-scraper (single engine, up to 100 h.p. flywheel and similar types, up to and
including D-5 and similar types); Tugger hoist operator (1 drum); Ultra high pressure waterjet cutting tool system operator; Vacuum blasting machine operator
GROUP 8: Asphalt or concrete spreading operator (tamping or finishing); Asphalt paving machine operator (Barber Greene or similar type); Asphalt-rubber distribution operator; Backhoe operator (up to and including 3/4 yd.), small ford, Case or similar; Cast-in-place pipe laying machine
operator; Combination mixer and compressor operator (gunite 77 October 11, 2022
Section 21 Water Replacement Project
47 work); Compactor operator (self-propelled); Concrete mixer operator (paving); Crushing plant operator; Drill Doctor; Drilling machine operator, Bucket or auger types (Calweld 150 bucket or similar types - Watson 1500, 2000 2500 auger or similar types - Texoma 700, 800 auger or similar types - drilling depth of 60' maximum); Elevating grader operator; Grade checker; Gradall operator; Grouting machine operator; Heavy-duty repairman; Heavy equipment robotics operator; Kalamazoo balliste regulator or similar type; Kolman belt loader and similar type; Le Tourneau blob compactor or
similar type; Loader operator (Athey, Euclid, Sierra and similar types); Mobark Chipper or similar; Ozzie padder or similar types; P.C. slot saw; Pneumatic concrete placing machine operator (Hackley-Presswell or similar type);
Pumpcrete gun operator; Rock Drill or similar types; Rotary drill operator (excluding caisson type); Rubber-tired
earth-moving equipment operator (single engine,
caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds. up to and including 50 cu. yds. struck); Rubber-tired earth-moving equipment operator (multiple engine up to and including 25 yds. struck);
Rubber-tired scraper operator (self-loading paddle wheel type-John Deere, 1040 and similar single unit); Self-
propelled curb and gutter machine operator; Shuttle buggy; Skiploader operator (crawler and wheel type over 1-1/2 yds. up to and including 6-1/2 yds.); Soil remediation plant operator; Surface heaters and planer operator; Tractor
compressor drill combination operator; Tractor operator (any type larger than D-5 - 100 flywheel h.p. and over, or similar-bulldozer, tamper, scraper and push tractor single engine); Tractor operator (boom attachments), Traveling pipe wrapping, cleaning and bendng machine operator;
Trenching machine operator (over 6 ft. depth capacity,
manufacturer's rating); trenching Machine with Road Miner attachment (over 6 ft depth capacity): Ultra high pressure waterjet cutting tool system mechanic; Water pull
(compaction) operator
GROUP 9: Heavy Duty Repairman
GROUP 10: Drilling machine operator, Bucket or auger types (Calweld 200 B bucket or similar types-Watson 3000 or 5000 auger or similar types-Texoma 900 auger or similar
types-drilling depth of 105' maximum); Dual drum mixer, dynamic compactor LDC350 (or similar types); Monorail
locomotive operator (diesel, gas or electric); Motor
patrol-blade operator (single engine); Multiple engine
tractor operator (Euclid and similar type-except Quad 9 cat.); Rubber-tired earth-moving equipment operator (single engine, over 50 yds. struck); Pneumatic pipe ramming tool and similar types; Prestressed wrapping machine operator; Rubber-tired earth-moving equipment operator (single
engine, over 50 yds. struck); Rubber tired earth moving equipment operator (multiple engine, Euclid, caterpillar and similar over 25 yds. and up to 50 yds. struck), Tower crane repairman; Tractor loader operator (crawler and wheel type over 6-1/2 yds.); Woods mixer operator (and similar Pugmill equipment)
GROUP 11: Heavy Duty Repairman - Welder Combination, Welder - Certified.
78 October 11, 2022
Section 21 Water Replacement Project
48 GROUP 12: Auto grader operator; Automatic slip form operator; Drilling machine operator, bucket or auger types (Calweld, auger 200 CA or similar types - Watson, auger 6000 or
similar types - Hughes Super Duty, auger 200 or similar types - drilling depth of 175' maximum); Hoe ram or similar with compressor; Mass excavator operator less tha 750 cu. yards; Mechanical finishing machine operator; Mobile form traveler operator; Motor patrol operator (multi-engine); Pipe mobile machine operator; Rubber-tired earth- moving equipment operator (multiple engine, Euclid, Caterpillar and similar type, over 50 cu. yds. struck); Rubber-tired self- loading scraper operator (paddle-wheel-auger type self-loading - two (2) or more units)
GROUP 13: Rubber-tired earth-moving equipment operator
operating equipment with push-pull system (single engine, up to and including 25 yds. struck)
GROUP 14: Canal liner operator; Canal trimmer operator; Remote- control earth-moving equipment operator (operating a second piece of equipment: $1.00 per hour additional); Wheel excavator operator (over 750 cu. yds.)
GROUP 15: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (single engine, Caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds. and up to and including 50 yds. struck); Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (multiple
engine-up to and including 25 yds. struck)
GROUP 16: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (single engine, over 50 yds. struck); Rubber-tired earth-moving equipment operator, operating equipment with push-pull system
(multiple engine, Euclid, Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 17: Rubber-tired earth-moving equipment operator, operating equipment with push-pull system (multiple engine, Euclid, Caterpillar and similar, over 50 cu. yds. struck); Tandem tractor operator (operating crawler type tractors in tandem - Quad 9 and similar type)
GROUP 18: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
single engine, up to and including 25 yds. struck)
GROUP 19: Rotex concrete belt operator (or similar types); Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar types in any
combination, excluding compaction units - single engine, Caterpillar, Euclid, Athey Wagon and similar types with any and all attachments over 25 yds.and up to and including 50 cu. yds. struck); Rubber-tired earth-moving equipment
operator, operating in tandem (scrapers, belly dumps and similar types in any combination, excluding compaction
units - multiple engine, up to and including 25 yds. struck) 79 October 11, 2022
Section 21 Water Replacement Project
49 GROUP 20: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
single engine, over 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating in tandem
(scrapers, belly dumps, and similar types in any
combination, excluding compaction units - multiple engine, Euclid, Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 21: Rubber-tired earth-moving equipment operator, operating in tandem (scrapers, belly dumps and similar
types in any combination, excluding compaction units -
multiple engine, Euclid, Caterpillar and similar type, over 50 cu. yds. struck)
GROUP 22: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, up to and including 25 yds. struck)
GROUP 23: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, Caterpillar, Euclid, Athey Wagon and
similar types with any and all attachments over 25 yds. and up to and including 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating with the tandem push-pull system (multiple engine, up to and including 25 yds. struck)
GROUP 24: Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system
(single engine, over 50 yds. struck); Rubber-tired
earth-moving equipment operator, operating equipment with the tandem push-pull system (multiple engine, Euclid,
Caterpillar and similar, over 25 yds. and up to 50 yds. struck)
GROUP 25: Concrete pump operator-truck mounted; Rubber-tired earth-moving equipment operator, operating equipment with the tandem push-pull system (multiple engine, Euclid,
Caterpillar and similar type, over 50 cu. yds. struck)

CRANES, PILEDRIVING AND HOISTING EQUIPMENT CLASSIFICATIONS GROUP 1: Engineer oiler; Fork lift operator (includes loed, lull or similar types)
GROUP 2: Truck crane oiler
GROUP 3: A-frame or winch truck operator; Ross carrier
operator (jobsite)
GROUP 4: Bridge-type unloader and turntable operator;
Helicopter hoist operator
GROUP 5: Hydraulic boom truck; Stinger crane (Austin-Western or similar type); Tugger hoist operator (1 drum)
GROUP 6: Bridge crane operator; Cretor crane operator; Hoist operator (Chicago boom and similar type); Lift mobile
operator; Lift slab machine operator (Vagtborg and similar 80 October 11, 2022
Section 21 Water Replacement Project
50 types); Material hoist and/or manlift operator; Polar gantry crane operator; Self Climbing scaffold (or similar type); Shovel, backhoe, dragline, clamshell operator (over 3/4 yd. and up to 5 cu. yds. mrc); Tugger hoist operator GROUP 7: Pedestal crane operator; Shovel, backhoe, dragline, clamshell operator (over 5 cu. yds. mrc); Tower crane
repair; Tugger hoist operator (3 drum)
GROUP 8: Crane operator (up to and including 25 ton
capacity); Crawler transporter operator; Derrick barge
operator (up to and including 25 ton capacity); Hoist
operator, stiff legs, Guy derrick or similar type (up to and including 25 ton capacity); Shovel, backhoe, dragline, clamshell operator (over 7 cu. yds., M.R.C.)
GROUP 9: Crane operator (over 25 tons and up to and including 50 tons mrc); Derrick barge operator (over 25 tons up to and including 50 tons mrc); Highline cableway operator; Hoist operator, stiff legs, Guy derrick or similar type (over 25 tons up to and including 50 tons mrc); K-crane operator; Polar crane operator; Self erecting tower crane operator maximum lifting capacity ten tons
GROUP 10: Crane operator (over 50 tons and up to and
including 100 tons mrc); Derrick barge operator (over 50 tons up to and including 100 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 50 tons up to and including 100 tons mrc), Mobile tower crane operator (over 50 tons, up to and including 100 tons M.R.C.); Tower crane operator and tower gantry
GROUP 11: Crane operator (over 100 tons and up to and
including 200 tons mrc); Derrick barge operator (over 100 tons up to and including 200 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 100 tons up to and including 200 tons mrc); Mobile tower crane operator (over 100 tons up to and including 200 tons mrc)
GROUP 12: Crane operator (over 200 tons up to and including 300 tons mrc); Derrick barge operator (over 200 tons up to and including 300 tons mrc); Hoist operator, stiff legs, Guy derrick or similar type (over 200 tons, up to and
including 300 tons mrc); Mobile tower crane operator (over 200 tons, up to and including 300 tons mrc)
GROUP 13: Crane operator (over 300 tons); Derrick barge operator (over 300 tons); Helicopter pilot; Hoist operator, stiff legs, Guy derrick or similar type (over 300 tons); Mobile tower crane operator (over 300 tons)

TUNNEL CLASSIFICATIONS
GROUP 1: Skiploader (wheel type up to 3/4 yd. without
attachment)
GROUP 2: Power-driven jumbo form setter operator
GROUP 3: Dinkey locomotive or motorperson (up to and
including 10 tons)
81 October 11, 2022
Section 21 Water Replacement Project
51 GROUP 4: Bit sharpener; Equipment greaser (grease truck); Slip form pump operator (power-driven hydraulic lifting device for concrete forms); Tugger hoist operator (1 drum); Tunnel locomotive operator (over 10 and up to and including 30 tons)
GROUP 5: Backhoe operator (up to and including 3/4 yd.); Small Ford, Case or similar; Drill doctor; Grouting machine operator; Heading shield operator; Heavy-duty repairperson; Loader operator (Athey, Euclid, Sierra and similar types); Mucking machine operator (1/4 yd., rubber-tired, rail or track type); Pneumatic concrete placing machine operator (Hackley-Presswell or similar type); Pneumatic heading
shield (tunnel); Pumpcrete gun operator; Tractor compressor drill combination operator; Tugger hoist operator (2 drum); Tunnel locomotive operator (over 30 tons)
GROUP 6: Heavy Duty Repairman
GROUP 7: Tunnel mole boring machine operator

ENGINEERS ZONES
$1.00 additional per hour for all of IMPERIAL County and the portions of KERN, RIVERSIDE & SAN BERNARDINO Counties as defined below:

That area within the following Boundary: Begin in San
Bernardino County, approximately 3 miles NE of the intersection of I-15 and the California State line at that point which is the NW corner of Section 1, T17N,m R14E, San Bernardino Meridian. Continue W in a straight line to that point which is the SW corner of the northwest quarter of Section 6, T27S, R42E, Mt. Diablo Meridian. Continue North to the intersection with the Inyo County Boundary at that point which is the NE corner of the western half of the northern quarter of Section 6, T25S, R42E, MDM. Continue W along the Inyo and San
Bernardino County boundary until the intersection with Kern County, as that point which is the SE corner of Section 34, T24S, R40E, MDM. Continue W along the Inyo and Kern County boundary until the intersection with Tulare County, at that point which is the SW corner of the SE quarter of Section 32, T24S, R37E, MDM. Continue W along the Kern and Tulare County boundary, until that point which is the NW corner of T25S, R32E, MDM. Continue S following R32E lines to the NW corner of T31S, R32E, MDM. Continue W to the NW corner of T31S, R31E, MDM. Continue S to the SW corner of T32S, R31E, MDM. Continue W to SW corner of SE quarter of Section 34, T32S, R30E, MDM.

Continue S to SW corner of T11N, R17W, SBM. Continue E along south boundary of T11N, SBM to SW corner of T11N, R7W, SBM.

Continue S to SW corner of T9N, R7W, SBM. Continue E along south boundary of T9N, SBM to SW corner of T9N, R1E, SBM.

Continue S along west boundary of R1E, SMB to Riverside County line at the SW corner of T1S, R1E, SBM. Continue E along south boundary of T1s, SBM (Riverside County Line) to SW corner of T1S, R10E, SBM. Continue S along west boundary of R10E, SBM to Imperial County line at the SW corner of T8S, R10E, SBM.

Continue W along Imperial and Riverside county line to NW corner of T9S, R9E, SBM. Continue S along the boundary between Imperial and San Diego Counties, along the west edge of R9E, SBM to the south boundary of Imperial County/California state 82 October 11, 2022
Section 21 Water Replacement Project
52 line. Follow the California state line west to Arizona state line, then north to Nevada state line, then continuing NW back to start at the point which is the NW corner of Section 1, T17N, R14E, SBM
$1.00 additional per hour for portions of SAN LUIS OBISPO, KERN, SANTA BARBARA & VENTURA as defined below:

That area within the following Boundary: Begin approximately 5 miles north of the community of Cholame, on the Monterey County and San Luis Obispo County boundary at the NW corner of T25S, R16E, Mt. Diablo Meridian. Continue south along the west side of R16E to the SW corner of T30S, R16E, MDM. Continue E to SW corner of T30S, R17E, MDM. Continue S to SW corner of T31S, R17E, MDM. Continue E to SW corner of T31S, R18E, MDM.

Continue S along West side of R18E, MDM as it crosses into San Bernardino Meridian numbering area and becomes R30W. Follow the west side of R30W, SBM to the SW corner of T9N, R30W, SBM.

Continue E along the south edge of T9N, SBM to the Santa Barbara County and Ventura County boundary at that point whch is the SW corner of Section 34.T9N, R24W, SBM, continue S along the Ventura County line to that point which is the SW corner of the SE quarter of Section 32, T7N, R24W, SBM. Continue E along the south edge of T7N, SBM to the SE corner to T7N, R21W, SBM. Continue N along East side of R21W, SBM to Ventura County and Kern County boundary at the NE corner of T8N, R21W.

Continue W along the Ventura County and Kern County boundary to the SE corner of T9N, R21W. Continue North along the East edge of R21W, SBM to the NE corner of T12N, R21W, SBM. Continue West along the north edge of T12N, SBM to the SE corner of T32S, R21E, MDM. [T12N SBM is a think strip between T11N SBM and T32S MDM]. Continue North along the East side of R21E, MDM to the Kings County and Kern County border at the NE corner of T25S, R21E, MDM, continue West along the Kings County and Kern County Boundary until the intersection of San Luis Obispo County. Continue west along the Kings County and San Luis Obispo County boundary until the intersection with Monterey County. Continue West along the Monterey County and San Luis Obispo County boundary to the beginning point at the NW corner of T25S, R16E, MDM.

$2.00 additional per hour for INYO and MONO Counties and the Northern portion of SAN BERNARDINO County as defined below:

That area within the following Boundary: Begin at the
intersection of the northern boundary of Mono County and the California state line at the point which is the center of Section 17, T10N, R22E, Mt. Diablo Meridian. Continue S then SE along the entire western boundary of Mono County, until it reaches Inyo County at the point which is the NE corner of the Western half of the NW quarter of Section 2, T8S, R29E, MDM.

Continue SSE along the entire western boundary of Inyo County, until the intersection with Kern County at the point which is the SW corner of the SE 1/4 of Section 32, T24S, R37E, MDM.

Continue E along the Inyo and Kern County boundary until the intersection with San Bernardino County at that point which is the SE corner of section 34, T24S, R40E, MDM. Continue E along the Inyo and San Bernardino County boundary until the point which is the NE corner of the Western half of the NW quarter of Section 6, T25S, R42E, MDM. Continue S to that point which is 83 October 11, 2022
Section 21 Water Replacement Project
53 the SW corner of the NW quarter of Section 6, T27S, R42E, MDM.

Continue E in a straight line to the California and Nevada state border at the point which is the NW corner of Section 1, T17N, R14E, San Bernardino Meridian. Then continue NW along the state line to the starting point, which is the center of Section 18, T10N, R22E, MDM.

REMAINING AREA NOT DEFINED ABOVE RECIEVES BASE RATE
---------------------------------------------------------------- ENGI0012-004 08/01/2020
Rates Fringes
OPERATOR: Power Equipment
(DREDGING)
(1) Leverman................$ 56.40 30.00
(2) Dredge dozer............$ 50.43 30.00
(3) Deckmate................$ 50.32 30.00
(4) Winch operator (stern
winch on dredge)............$ 49.77 30.00
(5) Fireman-Oiler,
Deckhand, Bargeman,
Leveehand...................$ 49.23 30.00
(6) Barge Mate..............$ 49.84 30.00
---------------------------------------------------------------- IRON0433-006 07/01/2020
Rates Fringes

IRONWORKER
Fence Erector...............$ 34.58 24.81
Ornamental, Reinforcing
and Structural..............$ 41.00 33.45
PREMIUM PAY:
$6.00 additional per hour at the following locations:

China Lake Naval Test Station, Chocolate Mountains Naval Reserve-Niland,
Edwards AFB, Fort Irwin Military Station, Fort Irwin Training Center-Goldstone, San Clemente Island, San Nicholas Island, Susanville Federal Prison, 29 Palms - Marine Corps, U.S. Marine Base - Barstow, U.S. Naval Air Facility - Sealey, Vandenberg AFB $4.00 additional per hour at the following locations:

Army Defense Language Institute - Monterey, Fallon Air Base, Naval Post Graduate School - Monterey, Yermo Marine Corps Logistics Center
$2.00 additional per hour at the following locations:

Port Hueneme, Port Mugu, U.S. Coast Guard Station - Two Rock ---------------------------------------------------------------- * LABO0220-002 07/01/2022
84 October 11, 2022
Section 21 Water Replacement Project
54 KERN COUNTY
Rates Fringes

LABORER (TUNNEL)
GROUP 1.....................$ 45.68 23.30
GROUP 2.....................$ 46.00 23.30
GROUP 3.....................$ 46.46 23.30
GROUP 4.....................$ 47.15 23.30

LABORER
GROUP 1.....................$ 36.39 21.04
GROUP 2.....................$ 36.94 21.04
GROUP 3.....................$ 37.49 21.04
GROUP 4.....................$ 39.04 21.04
GROUP 5.....................$ 39.39 21.04

LABORER CLASSIFICATIONS
GROUP 1: Cleaning and handling of panel forms; Concrete screeding for rough strike-off; Concrete, water curing; Demolition laborer, the cleaning of brick if performed by a worker performing any other phase of demolition work, and the cleaning of lumber; Fire watcher, limber, brush loader, piler and debris handler; Flag person; Gas, oil and/or
water pipeline laborer; Laborer, asphalt-rubber material loader; Laborer, general or construction; Laborer, general clean-up; Laborer, landscaping; Laborer, jetting; Laborer, temporary water and air lines; Material hose operator
(walls, slabs, floors and decks); Plugging, filling of shee bolt holes; Dry packing of concrete; Railroad maintenance, repair track person and road beds; Streetcar and railroad construction track laborers; Rigging and signaling; Scaler; Slip form raiser; Tar and mortar; Tool crib or tool house laborer; Traffic control by any method; Window cleaner; Wire mesh pulling - all concrete pouring operations
GROUP 2: Asphalt shoveler; Cement dumper (on 1 yd. or larger mixer and handling bulk cement); Cesspool digger and
installer; Chucktender; Chute handler, pouring concrete, the handling of the chute from readymix trucks, such as walls, slabs, decks, floors, foundation, footings, curbs, gutters and sidewalks; Concrete curer, impervious membrane and form oiler; Cutting torch operator (demolition); Fine grader, highways and street paving, airport, runways and similar type heavy construction; Gas, oil and/or water
pipeline wrapper - pot tender and form person; Guinea
chaser; Headerboard person - asphalt; Laborer, packing rod steel and pans; Membrane vapor barrier installer; Power broom sweeper (small); Riprap stonepaver, placing stone or wet sacked concrete; Roto scraper and tiller; Sandblaster (pot tender); Septic tank digger and installer(lead); Tank scaler and cleaner; Tree climber, faller, chain saw
operator, Pittsburgh chipper and similar type brush
shredder; Underground laborer, including caisson bellower GROUP 3: Buggymobile person; Concrete cutting torch; Concrete pile cutter; Driller, jackhammer, 2-1/2 ft. drill steel or longer; Dri-pak-it machine; Gas, oil and/or water pipeline wrapper, 6-in. pipe and over, by any method, inside and out; High scaler (including drilling of same); Hydro seeder and similar type; Impact wrench multi-plate; Kettle person, 85 October 11, 2022
Section 21 Water Replacement Project
55 pot person and workers applying asphalt, lay-kold,
creosote, lime caustic and similar type materials
(""applying"" means applying, dipping, brushing or handling of such materials for pipe wrapping and waterproofing); Operator of pneumatic, gas, electric tools, vibrating
machine, pavement breaker, air blasting, come-alongs, and similar mechanical tools not separately classified herein; Pipelayer's backup person, coating, grouting, making of joints, sealing, caulking, diapering and including rubber gasket joints, pointing and any and all other services; Rock slinger; Rotary scarifier or multiple head concrete chipping scarifier; Steel headerboard and guideline setter; Tamper, Barko, Wacker and similar type; Trenching machine, hand-propelled
GROUP 4: Asphalt raker, lute person, ironer, asphalt dump person, and asphalt spreader boxes (all types); Concrete core cutter (walls, floors or ceilings), grinder or sander; Concrete saw person, cutting walls or flat work, scoring old or new concrete; Cribber, shorer, lagging, sheeting and trench bracing, hand-guided lagging hammer; Head rock
slinger; Laborer, asphalt- rubber distributor boot person; Laser beam in connection with laborers' work; Oversize
concrete vibrator operator, 70 lbs. and over; Pipelayer performing all services in the laying and installation of pipe from the point of receiving pipe in the ditch until completion of operation, including any and all forms of tubular material, whether pipe, metallic or non-metallic, conduit and any other stationary type of tubular device used for the conveying of any substance or element, whether water, sewage, solid gas, air, or other product whatsoever and without regard to the nature of material from which the tubular material is fabricated; No-joint pipe and stripping of same; Prefabricated manhole installer; Sandblaster
(nozzle person), water blasting, Porta Shot-Blast
GROUP 5: Blaster powder, all work of loading holes, placing and blasting of all powder and explosives of whatever type, regardless of method used for such loading and placing; Driller: All power drills, excluding jackhammer, whether core, diamond, wagon, track, multiple unit, and any and all other types of mechanical drills without regard to the form of motive power; Toxic waste removal

TUNNEL LABORER CLASSIFICATIONS
GROUP 1: Batch plant laborer; Changehouse person; Dump
person; Dump person (outside); Swamper (brake person and switch person on tunnel work); Tunnel materials handling person; Nipper; Pot tender, using mastic or other materials (for example, but not by way of limitation, shotcrete, etc.) GROUP 2: Chucktender, cabletender; Loading and unloading agitator cars; Vibrator person, jack hammer, pneumatic
tools (except driller); Bull gang mucker, track person; Concrete crew, including rodder and spreader
GROUP 3: Blaster, driller, powder person; Chemical grout jet person; Cherry picker person; Grout gun person; Grout mixer person; Grout pump person; Jackleg miner; Jumbo person; Kemper and other pneumatic concrete placer operator; Miner, 86 October 11, 2022
Section 21 Water Replacement Project
56 tunnel (hand or machine); Nozzle person; Operating of troweling and/or grouting machines; Powder person (primer house); Primer person; Sandblaster; Shotcrete person; Steel form raiser and setter; Timber person, retimber person, wood or steel; Tunnel Concrete finisher
GROUP 4: Diamond driller; Sandblaster; Shaft and raise work ---------------------------------------------------------------- LABO0220-005 07/01/2022

KERN COUNTY
Rates Fringes
Brick Tender.....................$ 37.32 23.18
---------------------------------------------------------------- * LABO0300-005 08/01/2022
Rates Fringes
Asbestos Removal Laborer.........$ 39.23 23.28
SCOPE OF WORK: Includes site mobilization, initial site cleanup, site preparation, removal of asbestos-containing material and toxic waste, encapsulation, enclosure and
disposal of asbestos- containing materials and toxic waste by hand or with equipment or machinery; scaffolding,
fabrication of temporary wooden barriers and assembly of decontamination stations.
---------------------------------------------------------------- LABO0345-001 07/01/2022
Rates Fringes

LABORER (GUNITE)
GROUP 1.....................$ 48.50 21.37
GROUP 2.....................$ 47.55 21.37
GROUP 3.....................$ 44.01 21.37
FOOTNOTE: GUNITE PREMIUM PAY: Workers working from a
Bosn'n's Chair or suspended from a rope or cable shall
receive 40 cents per hour above the foregoing applicable classification rates. Workers doing gunite and/or
shotcrete work in a tunnel shall receive 35 cents per hour above the foregoing applicable classification rates, paid on a portal-to-portal basis. Any work performed on, in or above any smoke stack, silo, storage elevator or similar type of structure, when such structure is in excess of
75'-0"" above base level and which work must be performed in whole or in part more than 75'-0"" above base level, that work performed above the 75'-0"" level shall be compensated for at 35 cents per hour above the applicable
classification wage rate.

GUNITE LABORER CLASSIFICATIONS
GROUP 1: Rodmen, Nozzlemen
GROUP 2: Gunmen
87 October 11, 2022
Section 21 Water Replacement Project
57 GROUP 3: Reboundmen
---------------------------------------------------------------- * LABO0783-001 07/01/2022

INYO AND MONO COUNTIES
Rates Fringes

LABORER (TUNNEL)
GROUP 1.....................$ 45.68 23.30
GROUP 2.....................$ 46.00 23.30
GROUP 3.....................$ 46.46 23.30
GROUP 4.....................$ 47.15 23.30

LABORER CLASSIFICATIONS
GROUP 1: Cleaning and handling of panel forms; Concrete screeding for rough strike-off; Concrete, water curing; Demolition laborer, the cleaning of brick if performed by a worker performing any other phase of demolition work, and the cleaning of lumber; Fire watcher, limber, brush loader, piler and debris handler; Flag person; Gas, oil and/or
water pipeline laborer; Laborer, asphalt-rubber material loader; Laborer, general or construction; Laborer, general clean-up; Laborer, landscaping; Laborer, jetting; Laborer, temporary water and air lines; Material hose operator
(walls, slabs, floors and decks); Plugging, filling of shee bolt holes; Dry packing of concrete; Railroad maintenance, repair track person and road beds; Streetcar and railroad construction track laborers; Rigging and signaling; Scaler; Slip form raiser; Tar and mortar; Tool crib or tool house laborer; Traffic control by any method; Window cleaner; Wire mesh pulling - all concrete pouring operations
GROUP 2: Asphalt shoveler; Cement dumper (on 1 yd. or larger mixer and handling bulk cement); Cesspool digger and
installer; Chucktender; Chute handler, pouring concrete, the handling of the chute from readymix trucks, such as walls, slabs, decks, floors, foundation, footings, curbs, gutters and sidewalks; Concrete curer, impervious membrane and form oiler; Cutting torch operator (demolition); Fine grader, highways and street paving, airport, runways and similar type heavy construction; Gas, oil and/or water
pipeline wrapper - pot tender and form person; Guinea
chaser; Headerboard person - asphalt; Laborer, packing rod steel and pans; Membrane vapor barrier installer; Power broom sweeper (small); Riprap stonepaver, placing stone or wet sacked concrete; Roto scraper and tiller; Sandblaster (pot tender); Septic tank digger and installer(lead); Tank scaler and cleaner; Tree climber, faller, chain saw
operator, Pittsburgh chipper and similar type brush
shredder; Underground laborer, including caisson bellower 88 October 11, 2022
Section 21 Water Replacement Project
58 GROUP 3: Buggymobile person; Concrete cutting torch; Concrete pile cutter; Driller, jackhammer, 2-1/2 ft. drill steel or longer; Dri-pak-it machine; Gas, oil and/or water pipeline wrapper, 6-in. pipe and over, by any method, inside and out; High scaler (including drilling of same); Hydro seeder and similar type; Impact wrench multi-plate; Kettle person, pot person and workers applying asphalt, lay-kold,
creosote, lime caustic and similar type materials
(""applying"" means applying, dipping, brushing or handling of such materials for pipe wrapping and waterproofing); Operator of pneumatic, gas, electric tools, vibrating
machine, pavement breaker, air blasting, come-alongs, and similar mechanical tools not separately classified herein; Pipelayer's backup person, coating, grouting, making of joints, sealing, caulking, diapering and including rubber gasket joints, pointing and any and all other services; Rock slinger; Rotary scarifier or multiple head concrete chipping scarifier; Steel headerboard and guideline setter; Tamper, Barko, Wacker and similar type; Trenching machine, hand-propelled
GROUP 4: Asphalt raker, lute person, ironer, asphalt dump person, and asphalt spreader boxes (all types); Concrete core cutter (walls, floors or ceilings), grinder or sander; Concrete saw person, cutting walls or flat work, scoring old or new concrete; Cribber, shorer, lagging, sheeting and trench bracing, hand-guided lagging hammer; Head rock
slinger; Laborer, asphalt- rubber distributor boot person; Laser beam in connection with laborers' work; Oversize
concrete vibrator operator, 70 lbs. and over; Pipelayer performing all services in the laying and installation of pipe from the point of receiving pipe in the ditch until completion of operation, including any and all forms of tubular material, whether pipe, metallic or non-metallic, conduit and any other stationary type of tubular device used for the conveying of any substance or element, whether water, sewage, solid gas, air, or other product whatsoever and without regard to the nature of material from which the tubular material is fabricated; No-joint pipe and stripping of same; Prefabricated manhole installer; Sandblaster
(nozzle person), water blasting, Porta Shot-Blast
GROUP 5: Blaster powder, all work of loading holes, placing and blasting of all powder and explosives of whatever type, regardless of method used for such loading and placing; Driller: All power drills, excluding jackhammer, whether core, diamond, wagon, track, multiple unit, and any and all other types of mechanical drills without regard to the form of motive power; Toxic waste removal

TUNNEL LABORER CLASSIFICATIONS
GROUP 1: Batch plant laborer; Changehouse person; Dump
person; Dump person (outside); Swamper (brake person and switch person on tunnel work); Tunnel materials handling person; Nipper; Pot tender, using mastic or other materials (for example, but not by way of limitation, shotcrete, etc.) GROUP 2: Chucktender, cabletender; Loading and unloading agitator cars; Vibrator person, jack hammer, pneumatic
tools (except driller); Bull gang mucker, track person; 89 October 11, 2022
Section 21 Water Replacement Project
59 Concrete crew, including rodder and spreader;
GROUP 3: Blaster, driller, powder person; Chemical grout jet person; Cherry picker person; Grout gun person; Grout mixer person; Grout pump person; Jackleg miner; Jumbo person; Kemper and other pneumatic concrete placer operator; Miner, tunnel (hand or machine); Nozzle person; Operating of
troweling and/or grouting machines; Powder person (primer house); Primer person; Sandblaster; Shotcrete person; Steel form raiser and setter; Timber person, retimber person, wood or steel; Tunnel Concrete finisher
GROUP 4: Diamond driller; Sandblaster; Shaft and raise work ---------------------------------------------------------------- LABO0783-004 07/01/2022

INYO AND MONO COUNTIES
Rates Fringes
Brick Tender.....................$ 37.32 23.18
---------------------------------------------------------------- LABO1184-001 07/01/2022
Rates Fringes
Laborers: (HORIZONTAL

DIRECTIONAL DRILLING)
(1) Drilling Crew Laborer...$ 40.69 18.25
(2) Vehicle Operator/Hauler.$ 40.86 18.25
(3) Horizontal Directional
Drill Operator..............$ 42.71 18.25
(4) Electronic Tracking
Locator.....................$ 44.71 18.25
Laborers: (STRIPING/SLURRY
SEAL)
GROUP 1.....................$ 41.90 21.32
GROUP 2.....................$ 43.20 21.32
GROUP 3.....................$ 45.21 21.32
GROUP 4.....................$ 46.95 21.32

LABORERS - STRIPING CLASSIFICATIONS
GROUP 1: Protective coating, pavement sealing, including repair and filling of cracks by any method on any surface in parking lots, game courts and playgrounds; carstops; operation of all related machinery and equipment; equipment repair technician
GROUP 2: Traffic surface abrasive blaster; pot tender - removal of all traffic lines and markings by any method (sandblasting, waterblasting, grinding, etc.) and
preparation of surface for coatings. Traffic control
person: controlling and directing traffic through both
conventional and moving lane closures; operation of all related machinery and equipment
GROUP 3: Traffic delineating device applicator: Layout and application of pavement markers, delineating signs, rumble and traffic bars, adhesives, guide markers, other traffic 90 October 11, 2022
Section 21 Water Replacement Project
60 delineating devices including traffic control. This
category includes all traffic related surface preparation (sandblasting, waterblasting, grinding) as part of the
application process. Traffic protective delineating system installer: removes, relocates, installs, permanently
affixed roadside and parking delineation barricades,
fencing, cable anchor, guard rail, reference signs,
monument markers; operation of all related machinery and equipment; power broom sweeper
GROUP 4: Striper: layout and application of traffic stripes and markings; hot thermo plastic; tape traffic stripes and markings, including traffic control; operation of all
related machinery and equipment
---------------------------------------------------------------- PAIN0036-009 10/01/2021
Rates Fringes
DRYWALL FINISHER/TAPER...........$ 39.50 22.92
---------------------------------------------------------------- PAIN0036-021 07/01/2020

INYO AND MONO COUNTIES
Rates Fringes
Painters: (Including Lead
Abatement)
(1) Journeyman Painter......$ 28.68 17.10
(2) Repaint.................$ 26.40 17.02
(4) All other work..........$ 28.68 17.10
(5) Industrial..............$ 35.52 17.64
REPAINT of any previously painted structure. Exceptions: work involving the aerospace industry, breweries, commercial recreational facilities, hotels which operate commercial establishments as part of hotel service, and sports facilities.

HIGH IRON & STEEL:

Aerial towers, towers, radio towers, smoke stacks, flag poles (any flag poles that can be finished from the ground with a ladder excluded), elevated water towers, steeples and domes in their entirety and any other extremely high and hazardous work, cooning steel, bos'n chair, or other similar devices, painting in other high hazardous work shall be classified as high iron & steel
---------------------------------------------------------------- PAIN0169-002 06/01/2020
Rates Fringes
GLAZIER..........................$ 40.00 26.76
---------------------------------------------------------------- PAIN1247-001 01/01/2021
Rates Fringes
91 October 11, 2022
Section 21 Water Replacement Project
61 SOFT FLOOR LAYER.................$ 38.75 14.03
---------------------------------------------------------------- PLAS0200-007 08/03/2022
Rates Fringes
PLASTERER........................$ 47.37 19.64
U.S. MARINE CORPS-PICKLE MEADOW & MOUNTAIN WARFARE TRAINING CENTER:
$3.00 additinal per hour.
---------------------------------------------------------------- PLAS0500-002 07/01/2020
Rates Fringes
CEMENT MASON/CONCRETE FINISHER...$ 38.50 25.91
---------------------------------------------------------------- * PLUM0345-001 09/01/2022
Rates Fringes

PLUMBER
Landscape/Irrigation Fitter.$ 38.20 25.65
Sewer & Storm Drain Work....$ 42.29 23.03
---------------------------------------------------------------- * PLUM0460-002 09/01/2022
Rates Fringes
PLUMBER (Plumber, Pipefitter,
Steamfitter, Refrigeration)......$ 53.70 25.36
China Lake, Marine Warfare
Training Center.............$ 65.68 26.26
Edwards Air Force Base......$ 62.18 26.26
FOOTNOTE: Work from a swinging scaffold, swinging basket, spider or from a bosun chair: 10% above the regular rate of pay for that day.
---------------------------------------------------------------- ROOF0027-001 01/01/2022
Rates Fringes
ROOFER...........................$ 38.81 14.81
FOOTNOTE: Work with pitch, pitch base of pitch impregnated products or any material containing coal tar pitch, on any building old or new, where both asphalt and pitchers are used in the application of a built-up roof or tear off:
$2.00 per hour additional.
---------------------------------------------------------------- SFCA0669-007 04/01/2022
Rates Fringes
SPRINKLER FITTER.................$ 43.25 26.77
---------------------------------------------------------------- 92 October 11, 2022
Section 21 Water Replacement Project
62 SHEE0105-003 01/01/2022
LOS ANGELES (South of a straight line drawn between Gorman and Big Pines)and Catalina Island, INYO, KERN (Northeast part, East of Hwy 395), MONO ORANGE, RIVERSIDE, AND SAN BERNARDINO COUNTIES Rates Fringes

SHEET METAL WORKER
(1) Commercial - New
Construction and Remodel
work........................$ 50.23 29.60
(2) Industrial work
including air pollution
control systems, noise
abatement, hand rails,
guard rails, excluding
aritechtural sheet metal
work, excluding A-C,
heating, ventilating
systems for human comfort...$ 48.28 29.46
---------------------------------------------------------------- SHEE0105-004 01/01/2022
KERN (Excluding portion East of Hwy 395) & LOS ANGELES (North of a straight line drawn between Gorman and Big Pines including Cities of Lancaster and Palmdale) COUNTIES
Rates Fringes
SHEET METAL WORKER...............$ 39.08 28.84
---------------------------------------------------------------- TEAM0011-002 07/01/2020
Rates Fringes

TRUCK DRIVER
GROUP 1....................$ 32.59 30.59
GROUP 2....................$ 32.74 30.59
GROUP 3....................$ 32.87 30.59
GROUP 4....................$ 33.06 30.59
GROUP 5....................$ 33.09 30.59
GROUP 6....................$ 33.12 30.59
GROUP 7....................$ 33.37 30.59
GROUP 8....................$ 33.62 30.59
GROUP 9....................$ 33.82 30.59
GROUP 10....................$ 34.12 30.59
GROUP 11....................$ 34.62 30.59
GROUP 12....................$ 35.05 30.59
WORK ON ALL MILITARY BASES:

PREMIUM PAY: $3.00 per hour additional.
[29 palms Marine Base, Camp Roberts, China Lake, Edwards AFB, El Centro Naval Facility, Fort Irwin, Marine Corps
Logistics Base at Nebo & Yermo, Mountain Warfare Training Center, Bridgeport, Point Arguello, Point Conception,
Vandenberg AFB]
93 October 11, 2022
Section 21 Water Replacement Project
63 TRUCK DRIVERS CLASSIFICATIONS
GROUP 1: Truck driver
GROUP 2: Driver of vehicle or combination of vehicles - 2 axles; Traffic control pilot car excluding moving heavy equipment permit load; Truck mounted broom
GROUP 3: Driver of vehicle or combination of vehicles - 3 axles; Boot person; Cement mason distribution truck; Fuel truck driver; Water truck - 2 axle; Dump truck, less than 16 yds. water level; Erosion control driver
GROUP 4: Driver of transit mix truck, under 3 yds.; Dumpcrete truck, less than 6-1/2 yds. water level
GROUP 5: Water truck, 3 or more axles; Truck greaser and tire person ($0.50 additional for tire person); Pipeline and utility working truck driver, including winch truck and plastic fusion, limited to pipeline and utility work;
Slurry truck driver
GROUP 6: Transit mix truck, 3 yds. or more; Dumpcrete truck, 6-1/2 yds. water level and over; Vehicle or combination of vehicles - 4 or more axles; Oil spreader truck; Dump truck, 16 yds. to 25 yds. water level
GROUP 7: A Frame, Swedish crane or similar; Forklift driver; Ross carrier driver
GROUP 8: Dump truck, 25 yds. to 49 yds. water level; Truck repair person; Water pull - single engine; Welder
GROUP 9: Truck repair person/welder; Low bed driver, 9 axles or over
GROUP 10: Dump truck - 50 yds. or more water level; Water pull - single engine with attachment
GROUP 11: Water pull - twin engine; Water pull - twin engine with attachments; Winch truck driver - $1.25 additional when operating winch or similar special attachments
GROUP 12: Boom Truck 17K and above
---------------------------------------------------------------- WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
================================================================ Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal Contractors applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2017. If this contract is covered by the EO, the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year.

Employees must be permitted to use paid sick leave for their 94 October 11, 2022
Section 21 Water Replacement Project
64 own illness, injury or other health-related needs, including preventive care; to assist a family member (or person who is like family to the employee) who is ill, injured, or has other health-related needs, including preventive care; or for reasons resulting from, or to assist a family member (or person who is like family to the employee) who is a victim of, domestic violence, sexual assault, or stalking. Additional information on contractor requirements and worker protections under the EO is available at
https://www.dol.gov/agencies/whd/government-contracts.

Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (ii)).
---------------------------------------------------------------- The body of each wage determination lists the classification and wage rates that have been found to be prevailing for the cited type(s) of construction in the area covered by the wage determination. The classifications are listed in alphabetical order of ""identifiers"" that indicate whether the particular rate is a union rate (current union negotiated rate for local), a survey rate (weighted average rate) or a union average rate (weighted union average rate).

Union Rate Identifiers
A four letter classification abbreviation identifier enclosed in dotted lines beginning with characters other than ""SU"" or ""UAVG"" denotes that the union classification and rate were prevailing for that classification in the survey. Example:

PLUM0198-005 07/01/2014. PLUM is an abbreviation identifier of the union which prevailed in the survey for this
classification, which in this example would be Plumbers. 0198 indicates the local union number or district council number where applicable, i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in processing the wage determination. 07/01/2014 is the effective date of the most current negotiated rate, which in this example is July 1, 2014.

Union prevailing wage rates are updated to reflect all rate changes in the collective bargaining agreement (CBA) governing this classification and rate.

Survey Rate Identifiers
Classifications listed under the ""SU"" identifier indicate that no one rate prevailed for this classification in the survey and the published rate is derived by computing a weighted average rate based on all the rates reported in the survey for that classification. As this weighted average rate includes all rates reported in the survey, it may include both union and non-union rates. Example: SULA2012-007 5/13/2014. SU indicates the rates are survey rates based on a weighted average
calculation of rates and are not majority rates. LA indicates the State of Louisiana. 2012 is the year of survey on which 95 October 11, 2022
Section 21 Water Replacement Project
65 these classifications and rates are based. The next number, 007 in the example, is an internal number used in producing the wage determination. 5/13/2014 indicates the survey completion date for the classifications and rates under that identifier.

Survey wage rates are not updated and remain in effect until a new survey is conducted.

Union Average Rate Identifiers
Classification(s) listed under the UAVG identifier indicate that no single majority rate prevailed for those
classifications; however, 100% of the data reported for the classifications was union data. EXAMPLE: UAVG-OH-0010
08/29/2014. UAVG indicates that the rate is a weighted union average rate. OH indicates the state. The next number, 0010 in the example, is an internal number used in producing the wage determination. 08/29/2014 indicates the survey completion date for the classifications and rates under that identifier.

A UAVG rate will be updated once a year, usually in January of each year, to reflect a weighted average of the current negotiated/CBA rate of the union locals from which the rate is based.
----------------------------------------------------------------

WAGE DETERMINATION APPEALS PROCESS

1.) Has there been an initial decision in the matter? This can be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on a wage determination matter
* a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour National Office because National Office has responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2.) and 3.) should be followed.

With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to:

Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.

Washington, DC 20210

2.) If the answer to the question in 1.) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). Write to:
96 October 11, 2022
Section 21 Water Replacement Project
66 Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.

Washington, DC 20210
The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue.

3.) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to:

Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.

Washington, DC 20210

4.) All decisions by the Administrative Review Board are final.

END OF GENERAL DECISION
================================================================ 97 October 11, 2022
ITEM NO.

COUNCIL AGENDA ITEM
October 11, 2022
PREPARED BY: Kenny Cooper, Finance Manager

SUBJECT: Presentation of FY 2020-21 Financial Audit Report Prepared by Bryant L. Jolley, Certified Public Accountants

BACKGROUND/ DISCUSSION
Presentation by Bryant L. Jolley CPAs on City of California City’s Financial Statements Year Ended 6/30/2021.

Audit Purpose:

The fundamental audit purpose is to provide independent assurances that management has presented financial statements that are a “true and fair” view of a company’s financial performance and position.

Audit Opinions:

In accordance with the US GAAP, auditors must release an opinion of the overall financial statements in the auditor's report. In other words, this is sometimes referred to as a report card. An unmodified opinion can be interpreted as an “A”, whereas an adverse opinion can be interpreted as an “F”. There are generally four types of audit opinions that auditors may render on the financial statements which are:
 Unmodified Opinion (Letter Grade “A”) - When expressing an unmodified opinion on financial statements, the auditor’s opinion should state that the financial statements present fairly, in all material respects, the financial position of the entity as of the balance sheet date and the results of its operations and its cash flows for the period then ended, in accordance with the applicable financial reporting framework.  Qualified Opinion (Letter Grade “C”) – a. The auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are material but not pervasive to the financial statements or b. The auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, but the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive.

NB 1.
98 October 11, 2022
 Adverse Opinion (Letter Grade “F”) ¬ - The auditor should express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.
 Disclaimer (No letter Grade) – The auditor should disclaim an opinion when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements, if any, could be both material and pervasive.

Audit Opinion Results:

The City of California City’s auditors rendered an Unmodified Opinion on the overall financial statements of the city (Letter Grade “A”).

Audit Findings & Recommendations:

As part of the FY 2020-21 audit, the auditing firm identified one (1) area of our internal control structure that was concerning & required improvement (See attached Single Audit Report). It is important to note that during this period the city went through significant staffing changes in the Finance Department. Additionally, Price Paige & Company was contracted as consultants to assist the City in the year-end close of its financial records. Here is the status of the (1) finding:
• 2021-001 Accounting Oversight (significant deficiency) – Finance has implemented timely monthly reconciliations of its daily banking activity, as well as moving toward quarterly reconciliation of all investment activity, accounts receivable, and accounts payable in preparation of the audit.

Overall, the Finance Department addressed this finding and expect even better results in forthcoming audits. Please note that an audit representative from Bryant L. Jolley will explain the audit results in more detail. They will also be able to answer any questions that the City Council and/or public may have.

FISCAL IMPACT
None

COUNCIL OPTIONS

1. Council can approve/deny the report

2. Council can take no action

RECOMMENDATION
Staff recommends that Council receive and file the FY20-21 Audit Report from Bryant Jolley CPA’s.

ATTACHMENTS

1. California City Financial Statement 2021

2. California City Single Audit 2021
99 October 11, 2022

CITY OF CALIFORNIA CITY

CALIFORNIA

FINANCIAL STATEMENTS

FOR THE YEAR ENDED
JUNE 30, 2021
100 October 11, 2022

CITY OF CALIFORNIA CITY

FINANCIAL STATEMENTS
JUNE 30, 2021

TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’S REPORT .......................................................................................................1 BASIC FINANCIAL STATEMENTS:

Government-Wide Financial Statements:

Statement of Net Position .................................................................................................................5 Statement of Activities ......................................................................................................................6 Fund Financial Statements:

Governmental Funds Financial Statements:

Balance Sheet – Governmental Funds .............................................................................................7 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .....................................................................................................8 Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ..........................................................................................9 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................10 Proprietary Fund Financial Statements:

Statement of Net Position – Proprietary Funds ..............................................................................11 Statement of Revenues, Expenses and Changes in
Net Position – Proprietary Funds ..................................................................................................12 Statement of Cash Flows – Proprietary Funds ...............................................................................13 Fiduciary Fund Financial Statements:

Statement of Net Position – Fiduciary Funds .................................................................................14 Statement of Changes in Net Position – Fiduciary Funds ..............................................................15 Notes to the Basic Financial Statements ..............................................................................................16 REQUIRED SUPPLEMENTARY INFORMATION:

Cost-Sharing Defined Pension Plan:

Proportionate Share of Net Pension Liability ..................................................................................47 Schedule of Contributions...............................................................................................................48 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ...................................................................................................................................49 Special Revenue Funds:

Street Maintenance Fund ..........................................................................................................50 Subdivision Deferred Improvement Fund ..................................................................................51 Public Safety Services Fund ......................................................................................................52 101 October 11, 2022

CITY OF CALIFORNIA CITY

FINANCIAL STATEMENTS
JUNE 30, 2021

TABLE OF CONTENTS
(Continued)
Page
SUPPLEMENTARY INFORMATION:

Combining and Individual Nonmajor Governmental Funds Statements:

Combining Balance Sheet – Nonmajor Governmental Funds ........................................................54 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .......................................................................56 102 October 11, 2022
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT
To the City Council of the
City of California City
California City, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of California City, California (the “City”) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
103 October 11, 2022
2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Accounting principles generally accepted in the United States of America require that the Proportionate Share of Net Pension Liability on page 47, Schedule of Contributions on page 48, and the budgetary comparison information on pages 49-52 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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

104 October 11, 2022
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 20, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

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

September 20, 2022
105 October 11, 2022
4 THIS PAGE IS LEFT BLANK INTENTIONALLY.
106 October 11, 2022
The accompanying notes are an integral part of these financial statements. 5 CITY OF CALIFORNIA CITY

STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 12,746,192 5,769,036 $ 18,515,228 $ Receivables:

Interest 5,805 12,760 18,565
Accounts 1,027,323 752,623 1,779,946
Due from other governments 3,527,376 1,083,587 4,610,963 Inventory - 44,451 44,451
Prepaid expenses 149,049 - 149,049
Internal balances 2,103,791 (2,103,791) -
Due from Successor Agency 20,717,138 - 20,717,138
Allowance: Due from Successor Agency Trust Fund (20,684,224) - (20,684,224) Advances to the Successor Agency 591,000 - 591,000
Restricted assets:

Cash and investments 88,522,289 - 88,522,289
Interest receivable 528,096 - 528,096
Capital assets:

Nondepreciable 3,138,525 1,595,367 4,733,892
Depreciable, net of accumulated depreciation 11,536,142 23,060,307 34,596,449 Total assets 25,667,331 128,455,511 154,122,842

DEFERRED OUTFLOWS OF RESOURCES
Pension deferrals 2,821,801 1,008,814 3,830,615
Total deferred outflows of resources 2,821,801 1,008,814 3,830,615

LIABILITIES
Accounts payable 549,027 395,095 944,122
Accrued liabilities 673,331 - 673,331
Accrued interest 767 7,423 8,190
Unearned revenue 79,517 - 79,517
Deposits payable 219,310 211,740 431,050
Noncurrent liabilities:

Due within one year 857,291 219,898 1,077,189
Due in more than one year 387,984 1,186,010 1,573,994
Net pension liability 4,193,813 12,201,970 16,395,783
Total liabilities 14,969,197 6,213,979 21,183,176

DEFERRED INFLOWS OF RESOURCES
Pension deferrals 100,805 352,227 453,032
Total deferred inflows of resources 100,805 352,227 453,032

NET POSITION
Net investment in capital assets 11,885,957 25,732,805 37,618,762 Restricted for:

Parks and recreation 12,691 - 12,691
Street maintenance 2,592,612 - 2,592,612
Subdivision infrastructure 89,050,385 - 89,050,385
Community development 1,636,333 - 1,636,333
Unrestricted 8,475,404 (3,068,938) 5,406,466
Total net position $ 20,361,361 115,955,888 $ 136,317,249 $ Primary Government
107 October 11, 2022
The accompanying notes are an integral part of these financial statements. 6 CITY OF CALIFORNIA CITY

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Operating Capital
Charges for Contributions Contributions Governmental Business-Type Expenses Services and Grants and Grants Activities Activities Total Governmental activities:

General government 2,833,589 $ 1,883,507 $ 291,151 $ 170 $ (658,761) $ - $ (658,761) $ Public safety 8,622,098 231,622 218,608 - (8,171,868) - (8,171,868) Parks and recreation 1,036,331 374,671 3,081 - (658,579) - (658,579) Public works 2,359,792 150 1,374,293 313,266 (672,083) - (672,083) Community development 572,280 365,437 - - (206,843) - (206,843) Total governmental activities 2,855,387 15,424,090 1,887,133 313,436 (10,368,134) - (10,368,134) Business-type activities:

Water 5,653,996 5,456,820 - - - (197,176) (197,176)
Sewer 1,640,652 1,643,427 - - - 2,775 2,775
Airport 393,545 140,924 87,718 - - (164,903) (164,903)
Dial-a-Ride 9,682 249,269 166,075 - - (73,512) (73,512) Total business-type activities 7,937,462 7,250,853 253,793 - - (432,816) (432,816) Total $ 10,106,240 23,361,552 $ 2,140,926 $ 313,436 $ (10,368,134) (432,816) (10,800,950) General revenues:

Taxes:

Property 2,501,763 - 2,501,763
Sales 8,107,664 - 8,107,664
Franchises 448,779 - 448,779
Transient occupancy 86,374 - 86,374
Other taxes 1,130,597 - 1,130,597
Business licenses 37,913 - 37,913
Motor vehicle in lieu 10,386 - 10,386
Use of money and property (833,902) 93,968 (739,934)
Miscellaneous 838,627 34,110 872,737
Transfers (530,765) 530,765 -
Total general revenues and transfers 11,797,436 658,843 12,456,279 Change in net position 1,429,302 226,027 1,655,329
Net position - beginning 20,135,334 114,526,586 134,661,920 Net position - ending $ 20,361,361 115,955,888 $ 136,317,249 $ Net (Expense) and
FUNCTIONS/PROGRAMS:

Program Revenues Changes in Net Position
108 October 11, 2022
The accompanying notes are an integral part of these financial statements. 7 CITY OF CALIFORNIA CITY
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2021
Special Revenue Funds
Subdivision Public Nonmajor Total
Street Deferred Safety Governmental Governmental
General Maintenance Improvement Services Funds Funds
ASSETS
Cash and investments 3,730,633 $ - $ - $ - $ 2,038,403 $ 5,769,036 $ Receivables:

Interest 5,640 - - 5 160 5,805
Accounts 1,027,323 - - - - 1,027,323
Intergovernmental 305,611 3,060,195 - 29,618 131,952 3,527,376 Prepaid expenses 129,969 - - 19,080 - 149,049
Due from other funds 3,470,259 - - - - 3,470,259
Due from Successor Agency 32,914 - 20,684,224 - - 20,717,138 Allowance: due from Successor Agency - - (20,684,224) - - (20,684,224) Advances to the Successor Agency - - - - 591,000 591,000 Restricted assets:

Cash and investments - - 88,522,289 - - 88,522,289
Interest receivable - - 528,096 - - 528,096
Total assets 8,702,349 $ 3,060,195 $ 89,050,385 $ 48,703 $ 2,761,515 $ 103,623,147 $

LIABILITIES
Accounts payable $ 52,172 325,475 $ - $ 139,989 $ 31,391 $ 549,027 $ Accrued liabilities - 673,331 - - - 673,331
Unearned revenue - 79,517 - - - 79,517
Deposits payable - 171,610 - - 47,700 219,310
Due to other funds 415,411 - - 68,488 882,569 1,366,468 Total liabilities 1,249,933 467,583 - 208,477 961,660 2,887,653

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 3,001,359 137 - 12,818 - 3,014,314 Total deferred inflows of resources 137 3,001,359 - 12,818 - 3,014,314

FUND BALANCES
Nonspendable:

Prepaid expenses 129,969 - - 19,080 - 149,049
Restricted for:

Public safety - - - - 917,890 917,890
Parks and recreation - - - - 12,691 12,691
Subdivision infrastructure - - 89,050,385 - - 89,050,385 Community development - - - - 1,636,333 1,636,333
Assigned for:

Community development - - - - 11,386 11,386
Parsac insurance 100,000 - - - 100,000 -
Unassigned 7,222,310 (408,747) - (191,672) (778,445) 5,843,446 Total fund balances (deficits) 7,452,279 (408,747) 89,050,385 (172,592) 1,799,855 97,721,180 Total liabilities, deferred inflows of resources,
and fund balances 8,702,349 $ 3,060,195 $ 89,050,385 $ 48,703 $ 2,761,515 $ 103,623,147 $ 109 October 11, 2022
The accompanying notes are an integral part of these financial statements. 8 CITY OF CALIFORNIA CITY

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Total fund balances - governmental funds $ 97,721,180
26,198,832
3,014,314
Deferred outflows of resources 2,821,801
Deferred inflows of resources (352,227)
Capital leases (466,027)
Compensated absences (779,248)
Net pension liability (12,201,970)
(767)
Net position of governmental activities $ 115,955,888
Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds.

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in governmental funds.

Under the modified accrual basis of accounting used in governmental funds, revenues are not recognized for transactions that do not represent available financial resources. In the statement of net position and statement of activities, however, revenues are reported regardless of when the financial resources are available.

In governmental funds, deferred outflows and inflows of resources relating to pensions are not reported because they are applicable to future periods. In the statement of net position, deferred outflows and inflows of resources relating to pensions are reported as follows:

Only current liabilities are recorded in the governmental funds balance sheet. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of:
110 October 11, 2022
The accompanying notes are an integral part of these financial statements. 9 CITY OF CALIFORNIA CITY

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Subdivision Public Nonmajor Total
Street Deferred Safety Governmental Governmental
General Maintenance Improvement Services Funds Funds

REVENUES
Taxes 4,077,307 $ - $ - $ 7,226,709 $ 217,896 $ 11,521,912 $ Licenses and permits 1,862,907 - - 22,960 - 1,885,867
Intergovernmental 903,879 976,562 - 196,361 537,262 2,614,064 Charges for services 435,576 - - 176,110 365,337 977,023 Fines and forfeitures 10,860 - - 35,680 - 46,540
Use of money and property 37,552 331 (902,350) 16,422 1,325 (846,720) Miscellaneous 3,613 806,355 - 30,183 2,316 842,467
Total revenues 8,134,436 980,506 (902,350) 7,704,425 1,124,136 17,041,153

EXPENDITURES
Current:

General government 2,729,658 - - - - 2,729,658
Public safety - - - 6,966,555 720,350 7,686,905
Parks and recreation 926,076 - - - - 926,076
Public works 973,297 830,508 30,533 - - 1,834,338
Community development - - - - 453,046 453,046
Capital outlay 192,270 500,094 165,347 - 16,799 874,510 Debt service:

Principal 43,507 72,623 198,474 - 314,604 -
Interest 10,783 2,787 - - - 13,570
Total expenditures 4,867,595 1,414,008 30,533 7,330,376 1,190,195 14,832,707 (433,502) 3,266,841 (932,883) 374,049 (66,059) 2,208,446

OTHER FINANCING SOURCES (USES)
Transfers in - 96,071 - 1,065,906 31,608 1,193,585
Transfers out (1,723,350) (1,000) - - - (1,724,350)
Proceeds from capital lease - 158,688 - - - 158,688
Total other financing sources (uses) (1,564,662) 95,071 - 1,065,906 31,608 (372,077) Net change in fund balances 1,702,179 (338,431) (932,883) 1,439,955 (34,451) 1,836,369 Fund balances (deficits) - beginning (70,316) 5,750,100 89,983,268 (1,612,547) 1,834,306 95,884,811 Fund balances (deficits) - ending 7,452,279 $ (408,747) $ 89,050,385 $ (172,592) $ 1,799,855 $ 97,721,180 $ Excess (deficiency) of revenues over
(under) expenditures
111 October 11, 2022
The accompanying notes are an integral part of these financial statements. 10 CITY OF CALIFORNIA CITY

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2021
Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds 1,836,369 $ Depreciation expense (1,525,104)
Acquisition of capital assets 959,754
Gains and/or losses on disposals (9,902)
343,004
Capital leases (158,688)
Capital leases 314,604
265
(59,940)
(271,060)
Change in net position of governmental activities $ 1,429,302 In governmental funds, pension costs are recognized when employer contributions are made. In the statement of activities, pension costs are recognized on the accrual basis.

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those capital assets are allocated over their estimated useful lives as depreciation expense. Additionally, the net effect of various transactions is not reported in the governmental funds.

Certain revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds.

Proceeds from the issuance of long-term debt provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position.

Repayment of long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.

Compensated absence expenditures reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in a government fund.
112 October 11, 2022
The accompanying notes are an integral part of these financial statements. 11 CITY OF CALIFORNIA CITY

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2021
Water Sewer Airport Dial-a-Ride Total
ASSETS
Current:

Cash and investments 9,914,861 $ 2,831,331 $ - $ - $ 12,746,192 $ Receivables:

Interest 10,416 2,344 - - 12,760
Accounts 534,479 156,933 61,211 - 752,623
Intergovernmental - - 51,188 1,032,399 1,083,587
Inventory - - 44,451 - 44,451
Total current assets 2,990,608 10,459,756 156,850 1,032,399 14,639,613 Noncurrent:

Capital assets:

Nondepreciable 814,281 448,801 332,285 - 1,595,367
Depreciable, net of accumulated depreciation 5,909,391 1,766,717 3,680,938 179,096 11,536,142 Total noncurrent assets 2,215,518 6,723,672 4,013,223 179,096 13,131,509 Total assets 5,206,126 17,183,428 4,170,073 1,211,495 27,771,122

DEFERRED OUTFLOWS OF RESOURCES
Pension deferrals 672,283 199,467 37,100 99,964 1,008,814 Total deferred outflows of resources 199,467 672,283 37,100 99,964 1,008,814

LIABILITIES
Current liabilities:

Accounts payable 69,563 305,239 18,231 2,062 395,095
Accrued interest 7,266 157 - - 7,423
Deposits payable - 211,740 - - 211,740
Due to other funds - - 1,149,205 954,586 2,103,791
Current portion of compensated absences 25,402 78,998 11,419 526 116,345 Current portion of long-term debt 34,813 68,740 - - 103,553 Total current liabilities 170,971 630,947 1,178,855 957,174 2,937,947 Noncurrent:

Compensated absences 34,040 4,730 5,241 - 44,011
Long-term debt 3,025 1,138,974 - - 1,141,999
Net pension liability 2,814,238 827,006 143,013 409,556 4,193,813 Total noncurrent liabilities 1,970,710 2,851,303 148,254 409,556 5,379,823 Total liabilities 2,141,681 3,482,250 1,327,109 1,366,730 8,317,770

DEFERRED INFLOWS OF RESOURCES
Pension deferrals 60,674 20,672 7,607 11,852 100,805
Total deferred inflows of resources 20,672 60,674 7,607 11,852 100,805

NET POSITION
Net investment in capital assets 6,685,834 1,007,804 4,013,223 179,096 11,885,957 Unrestricted 2,235,436 7,626,953 (1,140,766) (246,219) 8,475,404 Total net position $ 3,243,240 14,312,787 $ 2,872,457 $ (67,123) $ 20,361,361 $ Business-Type Activities – Enterprise Funds
113 October 11, 2022
The accompanying notes are an integral part of these financial statements. 12 CITY OF CALIFORNIA CITY

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Water Sewer Airport Dial-a-Ride Total
Operating revenues:

Sales and service charges $ 1,643,427 5,456,820 $ 140,924 $ 9,682 $ 7,250,853 $ Miscellaneous 1 28,466 - 5,643 34,110
Total operating revenues 5,485,286 1,643,428 140,924 15,325 7,284,963 Operating expenses:

Administration and general 106,694 1,222,908 100,703 225,512 1,655,817 Transmission/collection - 3,977,470 - - 3,977,470
Treatment 1,220,292 - - - 1,220,292
Depreciation expense 214,732 392,549 292,842 23,757 923,880 Bad debt 17,649 57,256 - - 74,905
Total operating expenses 5,650,183 1,559,367 393,545 249,269 7,852,364 Operating income (loss) (164,897) 84,061 (252,621) (233,944) (567,401) Nonoperating revenues (expenses):

Intergovernmental - - 87,718 166,075 253,793
Interest revenue 74,793 19,175 - - 93,968
Interest expense (44,418) (3,813) - - (48,231)
Gain (loss) on disposal of capital assets (36,867) - - - (36,867) Total nonoperating revenues (expenses) 70,980 (62,110) 87,718 166,075 262,663 Income (loss) before transfers (93,917) 21,951 (164,903) (67,869) (304,738) Transfers:

Transfers in 408,421 113,951 7,393 1,000 530,765
Total transfers 408,421 113,951 7,393 1,000 530,765
Changes in net position 314,504 135,902 (157,510) (66,869) 226,027 Net position (deficit) - beginning 13,998,283 3,107,338 3,029,967 (254) 20,135,334 Net position (deficit) - ending $ 3,243,240 14,312,787 $ 2,872,457 $ (67,123) $ 20,361,361 $ Business-Type Activities – Enterprise Funds
114 October 11, 2022
The accompanying notes are an integral part of these financial statements. 13 CITY OF CALIFORNIA CITY

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Water Sewer Airport Dial-a-Ride Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 5,371,102 $ 1,616,918 $ 106,061 $ 9,722 $ 7,103,803 $ Payments to suppliers 6,976,675 10,639,805 11,894,346 11,769,601 41,280,427 Payments to or on behalf of employees for services (11,295,239) (11,916,273) (12,109,653) (12,036,937) (47,358,102) Cash received from other operating revenues 28,466 1 - 5,643 34,110 Net cash provided by (used for) operating activities 340,451 1,081,004 (109,246) (251,971) 1,060,238

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Grants received - - 66,182 175,814 241,996
Transfers in from other funds 408,421 113,951 7,393 1,000 530,765 (Loans) repayments to/from other funds - - 35,671 244,744 280,415 Net cash provided by (used for) noncapital financing activities 408,421 113,951 109,246 421,558 1,053,176

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (279,078) (719,955) - (169,587) (1,168,620) Principal paid on capital debt (32,434) (64,911) - - (97,345) Interest paid on capital debt (3,947) (44,809) - - (48,756) Net cash provided by (used for) capital and related
financing activities (315,459) (829,675) - (169,587) (1,314,721)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 82,908 22,242 - - 105,150
Net cash provided by (used for) investing activities 82,908 22,242 - - 105,150 Net increase (decrease) in cash and cash equivalents 1,256,874 (353,031) - - 903,843 Cash and cash equivalents, July 1 8,657,987 3,184,362 - - 11,842,349 Cash and cash equivalents, June 30 9,914,861 $ 2,831,331 $ - $ - $ 12,746,192 $ Reconciliation of Operating Income (Loss) to net cash
Provided by (used for) Operating Activities
Operating income (loss) $ (164,897) $ 84,061 $ (252,621) $ (233,944) $ (567,401) Adjustments to reconcile operating income (loss) to
net cash provided by (used for) by operating activities Depreciation 392,549 214,732 292,842 23,757 923,880
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (53,452) (8,860) (34,863) 40 (97,135) (Increase) decrease in inventory - - (3,329) - (3,329)
(Increase) decrease in prepaid expense - 2,115 - - 2,115 (Increase) decrease in deferred outflows of resources from pensions (141,712) (7,464) 47,025 20,305 (81,846) Increase (decrease) in accounts payable 182,567 (29,810) 3,892 627 157,276 Increase (decrease) in deposits payable 24,990 - - 24,990 - Increase (decrease) in compensated absences (11,425) (28,481) 260 (30,013) (69,659) Increase (decrease) in deferred inflows of resources from pensions 930,506 145,928 (144,890) (11,532) 920,012 Increase (decrease) in net pension liability (31,770) (78,122) (17,562) (21,211) (148,665) Net cash provided by (used for) operating activities 1,081,004 $ 340,451 $ (109,246) $ (251,971) $ 1,060,238 $ Business-Type Activities - Enterprise Funds
115 October 11, 2022
The accompanying notes are an integral part of these financial statements. 14 CITY OF CALIFORNIA CITY

STATEMENT OF NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2021
California City
Redevelopment
Successor Agency
Private Purpose
Trust Fund Custodial Fund
ASSETS
Cash $ 124,151 $ 558,890
Restricted investments with fiscal agents 1 -
Intergovernmental receivable 584,960 -
Notes receivable 173,000 -
Allowance – notes receivable (173,000) -
Land held for resale - 6,245,414
Total assets 6,954,526 558,890

DEFERRED OUTFLOWS
Deferred loss on refunding - 171,690

LIABILITIES
Due to other governments 125,000 558,890
Due to the General Fund 32,914 -
Interest payable 95,871 -
Unearned revenue 8,000 -
Advance from the Housing Authority 591,000 -
Noncurrent liabilities:

Long-term debt, due within one year - 480,332
Long-term debt, due in more than one year - 27,647,434
Total liabilities 558,890 28,980,551

NET POSITION (DEFICIT)
$ - (21,854,335) $
Net position held in trust for the retirement of
obligations of the California City Successor Agency
to the former California City Redevelopment Agency
116 October 11, 2022
The accompanying notes are an integral part of these financial statements. 15 CITY OF CALIFORNIA CITY

STATEMENT OF CHANGES IN NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
California City
Redevelopment
Successor Agency
Private Purpose
Trust Fund Custodial Fund

ADDITIONS
Tax increment $ - 1,071,391 $
Investment earnings:

Rental income 48,002 -
Net investment earnings 48,002 -
Collections on behalf of other governments:

Impact fees 603 1,086,488
Total collections on behalf of other governments 603 1,086,488 Total additions 1,119,996 1,086,488

DEDUCTIONS
Administrative costs - 75,103
Interest on long-term debt - 285,204
Payments to other governments 1,086,488 -
Total deductions 360,307 1,086,488
Change in net position 759,689 -
Net position (deficit) - beginning (22,614,024) -
Net position (deficit) - ending (21,854,335) $ - $
117 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
16 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Description of the Reporting Entity
The City of California City (the “City”) was incorporated in December 1965, under the laws of the State of California and enjoys all the rights and privileges applicable to a general law City. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of California (the primary government) and its component units. The blended component units discussed below are included in the City’s reporting entity because of the significance of their operational or financial relationship to the City.

Blended Component Units
The California City Community Services District is a subsidiary of California City and a detached area within City boundaries from the County service area. As a subsidiary district, the City Council of the City of California City now serves as the District’s governing board of directors. Separate financial statements are not prepared for the District.

The Industrial Development Authority was established for the purpose of issuing debt. Separate financial statements are not prepared by the Authority.

The California City Financing Authority was created for the purpose of assisting in the financing and refinancing of certain redevelopment activities of the Authority and certain public programs and projects of the City and for the purpose of aiding in the financing and refinancing of public capital improvements.

Separate financial statements are not prepared for the Authority.

The California City Housing Authority was created for the purpose of managing the housing assets of the former California City Redevelopment Agency after its dissolution on February 1, 2012 due to ABx1 26.

Separate financial statements are not prepared for the Authority.

Although these component units are legally separate from the City of California City, they are reported as if they were part of the primary government because the governing boards of these component units are the same as the primary government. Furthermore, the purpose of these component units is to provide a safe and more efficient service for the residents of California City.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from the business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. 118 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
17 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Most revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers non-grant related revenues to be available if they are collected within 60 days of the end of the current fiscal period. However, grant revenues are recognized when measurable regardless of availability.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when the payment is due.

The City’s fiduciary fund financial statements only report private-purpose trust funds. Trust funds are to account for the funds of the Successor Agency of the California City Redevelopment Agency. Private-purpose trust funds use the full accrual method of accounting and the economic resources measurement focus.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and thusly, have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:
 The General Fund is the government’s primary operating fund. It is used to account for all financial resources of the general government, except those required to be accounted for in another fund.  The Street Maintenance Fund is used to account for the general upkeep and repair of street pavement and street related capital projects within the City.
 The Subdivision Deferred Improvement Fund is used to account for funds dedicated to water and street infrastructure within certain land tracts.
 The Public Safety Services Fund accounts for voter approved special tax (Measure A). The Measure A or Special Tax of $150 per year, per property parcel would pay for salaries, equipment and other needs for both the Police and Fire departments for six years beginning July 1, 2012. 119 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
18 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The City reports the following major proprietary funds:
 The Water Fund is used to account for the operations of the City’s water utility, a self-supporting activity which is entirely financed through user charges. The costs of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges.  The Sewer Fund is used to account for the operations of the City’s sewer distribution lines, which are operated in a manner similar to a private enterprise. The costs of providing these services to the general public on a continuing basis are financed or recovered primarily through user charges.  The Airport Fund is used to account for the operations of maintaining and operating the California City Airport. The costs of providing these services to the users of the airport are through user charges, rental fees, and grants provided by the Federal Aviation Administration.  The Dial-a-Ride Fund is used to account for the operations of the City’s transit service which provides transit services to the Citizens of the City. The costs for providing these services are financed partially by user fees, but primarily through grant revenue, Transportation Development Act revenue, and subsidies provided by the General Fund.

Additionally, the City reports the following fiduciary funds:
 The California City Redevelopment Successor Agency Private Purpose Trust Fund is used to account for assets and liabilities of the former redevelopment agency until they are distributed to other units of state and local governments as a result of the dissolution of the redevelopment agency.  The Custodial Fund is used to account for assets held by the City as a custodian for the collection and distribution of impact fees on behalf of Mojave Unified School District and the Antelope Valley-East Kern Water Agency.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are charges between the government’s proprietary fund’s function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. 120 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
19 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance Cash and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.

Investments for the City, as well as for its component units, are recorded at fair value. The City’s policy is generally to hold investments until maturity or until market values equal or exceed cost. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans).

Property Tax Calendar
Property tax revenue is recognized in the fiscal year for which the taxes have been levied providing they become available. Available means when due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days), to be used to pay liabilities of the current period. The County of Kern collects property taxes for the City. Tax liens attach annually as of 12:01 AM on the first day in January proceeding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one half of the taxes on real property are due November 1: the second installment is due March 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on January 1 each year and are delinquent on August 31.

Prepaid Expenses
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Capital Assets
Capital assets, which include property, plant, equipment, intangible and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of the donation.

In accordance with GASB Statement No. 34, the City has reported general infrastructure assets and, as permitted under GASB Statement No. 34, will not report any infrastructure assets retroactively.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. 121 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
20 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance (Continued) Capital Assets (Continued)
Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives:

Assets Years
Buildings and structures 20-50
Improvements other than buildings 10-100
Machinery and equipment 3-10
Water rights 50
Furniture and fixtures 3-20
Source of supply 20-50
Transmissions 25
Water treatment 10
Compensated Absences
The City’s policy permits employees to accumulate earned but unused vacation and sick pay benefits. The total amount of liability for unused vacation and sick pay benefits is accrued when incurred in the government-wide financial statements. The unused reimbursable leave still outstanding following an employee’s resignation or retirement is reflected as a current liability in the General Fund since it is expected to be paid with expendable available financial resources.

For proprietary funds, the liability for compensated absences is segregated between short-term and long-term in the fund from which the liability will be paid.

Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Sick leave is payable when an employee is unable to work because of illness. Upon termination an employee will be paid for one-half of any unused sick leave. The vested portion of these compensated absences is accrued at June 30, 2021.

Unearned Revenue
Under both the accrual and modified accrual basis of accounting, revenues are recognized only when earned.

Assets recognized before the earning process is complete are offset by a corresponding liability as unearned revenue. Under the modified accrual basis of accounting, revenue is recognized when earned and susceptible to accrual. Revenues are considered susceptible to accrual if they are measurable and available to finance expenditures of the current period. Thus, governmental funds also defer revenue recognition for revenues not considered available to liquidate liabilities of the current period.

Unavailable Revenue
In the fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which revenues have been earned, but for which funds are not available to meet current financial obligations. Transactions for which unavailable revenue is recorded include non-grant related governmental revenues that are measurable but are not collected within 60 days of the end of the fiscal year. 122 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
21 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance (Continued) Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenditures in the current period.

In the fund financial statements, governmental fund-types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Fund Balance/Net Position
In the fund financial statements with the implementation of GASB Statement No. 54, governmental funds report fund balance as either nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, or unassigned fund balance. The following is a description of each type of fund balance classification:

Nonspendable – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted – includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a Council’s resolution or ordinance.

Assigned – includes amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed.

Unassigned – includes the residual amounts that have not been restricted, committed, or assigned to specific purposes.

An individual governmental fund could include nonspendable resources and amounts that are restricted or committed, assigned, or unassigned or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which restricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. 123 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
22 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, Deferred Outflows/Inflows, and Net Position/Fund Balance (Continued) Fund Balance/Net Position (Continued)
In the government-wide financial statements, proprietary fund financial statements, and private-purpose trust fund financial statements, net position is classified as either net investment in capital assets, restricted, or unrestricted.

Net investment in capital assets – describes the portion of net position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debit issued to finance these assets.

Restricted net position – describes the portion of net position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions, and which the City cannot unilaterally alter. These principally include debt service requirements, capital projects, and deferred improvement funds restricted to low- and moderate-income housing purposes.

Unrestricted net position – describes the portion of net position which is not restricted as to use.

When both restricted and unrestricted net position are available, restricted resources are depleted first before the unrestricted resources are used.

E. Pensions
In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting (see Note 7 and the RSI section immediately following the notes to the financial statements), regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The City recognizes a net pension liability of the qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as of the City’s fiscal year-end or the City’s proportionate share thereof in the case of a cost-sharing multipleemployer plan.

Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred.

Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose.

Projected earnings on qualified pension plan investments are recognized as a component of pension expense.

Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred.

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of California City California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 124 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
23 NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Grant Revenues
Certain grant revenues are recognized when specific related expenditures have been incurred. In other grant programs, monies are virtually unrestricted as to purpose of expenditure and are only revocable for failure to comply with prescribed compliance requirements. These revenues are recognized at the time of receipt, or earlier if susceptible to accrual criteria are met. Cash received prior to incurrence of the related expenditure is recorded as unearned revenue.

G. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Data
General Budget Policies
The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the new fiscal year. The Council conducts public meetings prior to its adoption. The budget is prepared by fund, function and activity, and includes information on the past year, current year estimates and requested appropriations for the next fiscal year. Supplemental appropriations, when required during the period, are also approved by the Council. Intradepartmental budget changes are approved by the Finance Director, City Manager, and the City Council. In most cases expenditures may not exceed appropriations at the function level.

At fiscal year-end all operating budget appropriations lapse.

Encumbrances
The City does not utilize encumbrance accounting.
125 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
24 NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued) B. Expenditures Over Appropriations
Governmental Funds Expenditures Appropriations Excess
Major Funds:

General Fund:

Current:

General government 2,729,658 $ 2,422,373 $ (307,285) $
Capital outlay 192,270 44,100 (148,170)
Debt service:

Principal 43,507 - (43,507)
Interest 2,787 - (2,787)
Street Maintenance Fund
Current:

Public works 830,508 $ 824,873 $ (5,635) $
Debt service:

Principal 72,623 - (72,623)
Interest 10,783 - (10,783)
Subdivision Deferred Improvement Fund:

Current:

Public works 30,533 $ - $ (30,533) $
Public Safety Services Fund:

Current:

Public safety 6,966,555 $ 6,550,737 $ (415,818) $
Capital outlay 165,347 - (165,347)
C. Deficit Fund Balances and Net Positions
Balance
Governmental Funds
Major Funds:

Street Maintenance Special Revenue Fund $ 408,747
Public Safety Services Special Revenue Fund 172,592
Nonmajor Funds:

COPS Recovery Fund 150,466
OHV Grant Fund 627,979
Enterprise Funds
Major Funds:

Dial-a-Ride Fund 67,123
The City expects to eliminate these deficits through future revenues and/or transfers from the General Fund. 126 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
25 NOTE 3 – CASH AND INVESTMENTS
The City maintains a cash and investment pool for all funds. Certain restricted funds, which are held and invested by independent outside custodians through contractual agreements, are not pooled. Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments $ 18,515,228
Restricted cash and investments 88,522,289
Statement of Net Position – Fiduciary Funds:

Cash 683,041
Restricted investments with fiscal agents 1
Total 107,720,559 $
Cash and investments as of June 30, 2021 consist of the following:

Cash on hand $ 2,572
Deposits with financial institutions 5,022,410
Investments 102,695,577
Total $ 107,720,559
Investments Authorized by the California Government Code and the City’s Investment Policy The following table identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

The investment policy seeks to generate consistent returns by focusing on preservation of capital and risk management. It seeks to achieve above-benchmark returns consistently throughout market cycles with low volatility relative to its benchmark (5-year treasury note). This strategy focuses on active duration management, sector selection, and term structure positioning.
127 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
26 NOTE 3 – CASH AND INVESTMENTS (Continued)
Investments Authorized by the California Government Code and the City’s Investment Policy (Continued) Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity of Portfolio in One Issuer
Local Agency Bonds 5 Years None 5%
U.S. Treasury Obligations 5 years None None
State Obligations 5 years None 5%
CA Local Agency Obligations 5 years None None
US Agency Obligations 5 years None None
Bankers Acceptances 180 days 30% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Non-negotiable Certificates of Deposit 5 years None 5%
Repurchase Agreements 1 Year None 5%
Reverse Repurchase Agreement and Securities
Lending Agreements 92 days
20% of base value
of the portfolio None
Medium-Term Notes 5 years 30% 5%
Mutual Funds and Money Market Mutual Funds N/A 20% 5%
Collateralized Bank Deposits 5 years None 5%
Mortgage Pass-Through Securities 5 years 20% 5%
Time Deposits 5 years None 5%
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Minimum
Authorized Maximum Credit
Investment Type Maturity Quality
U.S. Agency Obligations None None
U.S. Agency Sponsored Obligations None None
Banker's Acceptance Notes 360 days A-1
Certificates of Deposits 360 days A-1
Commercial Paper 270 days A-1
Money Market Funds N/A AAAm
Municipal Obligations None AAAm
State Obligations None A
Investment Agreements None A
Local Agency Investment Fund N/A None
128 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
27 NOTE 3 – CASH AND INVESTMENTS (Continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates.

One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short-term and long-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide the cash flows and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity.

Remaining Maturity (in Months)
12 Months 13-24 25-36 37-48 49-60 More Than
Investment Type Totals or Less Months Months Months Months 60 Months State Investment Pool $ 9,304,453 $ 9,304,453 $ - $ - $ - $ - $ - Kern County Investment Pool 4,339,107 4,339,107 - - - - - Money Market Funds 6,602,283 6,602,283 - - - - -
Certificates of Deposit 1,251,491 481,224 770,267 - - - - Corporate Issues 27,336,614 27,336,614 -
Municipal Issues 153,777 53,861,629 53,707,852 - - - -
Total 102,695,577 $ 20,880,844 $ 81,814,733 $ - $ - $ - $ - $ Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City has no investments (including investments held by bond trustee) that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of the fiscal year-end and for each investment type.

Maximum
Legal Not
Investment Type Amount Rating AAA AA+ AA AA- A+ A Rated State Investment Pool $ 9,304,453 N/A $ - $ - $ - $ - $ - $ 9,304,453 - $ Kern County Investment Pool 4,339,107 N/A - - - - - 4,339,107 - Money Market Funds 6,602,283 N/A - - - - - 6,602,283 -
Certificates of Deposit 1,251,491 N/A - - - - - 1,251,491 - Corporate Issues 27,336,614 N/A 1,591,185 - 9,158,783 - 5,990,502 10,596,144 - Municipal Issues 53,861,629 N/A 1,256,850 10,227,594 24,414,360 11,377,584 3,439,676 - 3,145,565 Total $ 10,227,594 102,695,577 $ 2,848,035 $ 24,414,360 $ 20,536,367 $ 9,430,178 $ 10,596,144 $ 24,642,899 $ 129 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
28 NOTE 3 – CASH AND INVESTMENTS (Continued)
Concentration of Credit Risk
Concentration of credit risk is the risk that the failure of any one issuer would place an undue financial burden on the City. The investment policy of the City has stipulations that limit the investment in any one issuer 5% for total investments. However, an exception to this policy has been made for investments in U.S. Treasuries and U.S. Agency Obligations, which have no limits place on the amount that can be invested in one issuer. As of June 30, 2021, the City did not have any investments in one issuer other than those noted as being exceptions to the policy that exceeded 5% of the City total investments.

Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits.

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2021, none of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in non-collateralized accounts.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded at fair market value.

Investment in County Investment Pool
The City is a voluntary participant in the County of Kern Investment Pool (CKIP) that is regulated by the California Government Code under the oversight of the Treasurer of the County of Kern. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by CKIP for the entire CKIP portfolio. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded at fair market value. 130 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
29 NOTE 3 – CASH AND INVESTMENTS (Continued)
Fair Value Hierarchy
Investments, including derivative instruments that are not hedging derivatives, are measured at fair value on a recurring basis. Recurring fair value measurements are those that Government Accounting Standards Board (GASB) statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value:

Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2021:

Level 2
Amount Inputs
Certificates of Deposit $ 1,251,491 $ 1,251,491
Corporate Issues 27,336,614 27,336,614
Municipal Issues 53,861,629 53,861,629
82,449,734 $ 82,449,734
Money Market Fund 6,602,283
State Investment Pool 9,304,453
Kern County Investment Pool 4,339,107
20,245,843
Total Investments $ 102,695,577
Unclassified Investments
Investments by Fair Value Level
Certificates of deposits are valued based on the rates currently offered for deposits of similar remaining maturities. Corporate and municipal Issues are valued using a matrix pricing technique that values securities based on their relationship to benchmark quoted prices. 131 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
30 NOTE 4 – CAPITAL ASSETS
Capital assets activity of the governmental activities for the year ended June 30, 2021 as follows:

Balance at Balance at
Governmental Activities: June 30, 2020 Increases Decreases Transfers June 30, 2021 Capital assets not being depreciated:

Land $ 2,380,797 $ - $ - $ 2,380,797 - $
Construction in progress 498,770 347,780 (88,822) - 757,728 Total capital assets not being depreciated 498,770 2,728,577 (88,822) - 3,138,525 Depreciable capital assets:

Buildings and structures 13,577,397 9,871 - 13,587,268 - Improvements other than buildings 22,401,090 103,217 (5,900) 22,498,407 - Equipment and vehicles 436,718 5,706,863 (387,126) - 5,756,455 Total capital assets being depreciated 549,806 41,685,350 (393,026) - 41,842,130 Less accumulated depreciation for:

Buildings and structures (5,229,716) (344,768) - (5,574,484) - Improvements other than buildings (8,708,221) (821,873) 5,900 (9,524,194) - Equipment and vehicles (3,701,906) (358,463) 377,224 - (3,683,145) Total accumulated depreciation (17,639,843) (1,525,104) 383,124 - (18,781,823) Total capital assets being depreciated, net (975,298) 24,045,507 (9,902) - 23,060,307 Governmental activities capital assets, net $ (476,528) 26,774,084 $ (98,724) $ - $ 26,198,832 $ Depreciation expense was charged to functions/programs of the governmental activities as follows:

Governmental Activities:

General government 184,264 $
Public safety 326,171
Parks and recreation 131,470
Public works 778,083
Community development 105,116
Total depreciation expense – governmental activities 1,525,104 $ 132 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
31 NOTE 4 – CAPITAL ASSETS (Continued)
Capital assets activity of the business-type activities for the year ending June 30, 2021 is as follows:

Balance at Balance at
Business-Type Activities: June 30, 2020 Increases Decreases Transfers June 30, 2021 Capital assets not being depreciated:

Land 516,028 $ 430,975 $ - $ - $ 947,003 $
Construction in progress 264,112 144,780 - - 408,892
Water Rights 239,472 - - - 239,472
Total capital assets not being depreciated 575,755 1,019,612 - - 1,595,367 Depreciable capital assets:

Buildings and structures 1,150,390 - - - 1,150,390
Improvements other than buildings 29,948,853 192,500 - - 30,141,353 Equipment and vehicles 3,701,879 400,366 (237,710) - 3,864,535 Source of supply 2,838,077 - - - 2,838,077
Transmission 9,764,862 - - - 9,764,862
Water treatment 16,623 - - - 16,623
Total capital assets being depreciated 47,420,684 592,866 (237,710) - 47,775,840 Less accumulated depreciation for:

Buildings and structures (1,123,547) (4,161) - - (1,127,708) Improvements other than buildings (19,661,136) (719,232) - - (20,380,368) Equipment and vehicles (2,897,599) (153,473) 200,843 - (2,850,229) Source of supply (2,167,015) (40,196) - - (2,207,211)
Transmission (9,650,741) (6,818) - - (9,657,559)
Water treatment (16,623) - - - (16,623)
Total accumulated depreciation (35,516,661) (923,880) 200,843 - (36,239,698) Total capital assets being
depreciated, net 11,904,023 (331,014) (36,867) - 11,536,142 Business-type activities capital assets, net 12,923,635 $ 244,741 $ (36,867) $ - $ 13,131,509 $ Depreciation expense was charged to business-type functions as follows:

Business-Type Activities:

Water $ 392,549
Sewer 214,732
Airport 292,842
Dial-a-Ride 23,757
Total depreciation expense – business-type activities 923,880 $ 133 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
32 NOTE 5 – INTERFUND ACTIVITY
Interfund balances for the purpose of the government-wide statements have been eliminated. The composition of interfund balances in the fund level statements as of June 30, 2021 is as follows:

A. Current Interfund Receivables/Payables
Current interfund balances are generally short-term loans to cover temporary cash deficits in various funds and are expected to be repaid shortly after the end of the fiscal year. The City’s interfund receivables and payables consisted of the following at June 30, 2021:

Due from
Other Funds
Due to
Other Funds
Governmental Funds
Major Funds:

General Fund $ - 3,503,173 $
Street Maintenance Fund 415,411 -
Public Safety Services Fund 68,488 -
Nonmajor Funds:

COPS Recovery Fund 150,466 -
OHV Grant Fund 732,103 -
Enterprise Funds
Major Funds:

Airport Fund 1,149,205 -
Dial-a-Ride Fund 954,586 -
Fiduciary Funds
Private-Purpose Trust Funds 32,914 -
Total $ 3,503,173 3,503,173 $
B. Long-Term Interfund Advances
Long-term advances are advances to other funds that are not expected to be repaid in one year or less. The City’s long-term interfund advances consisted of the following at June 30, 2021:

Advances to
Other Funds
Advances From
Other Funds
Governmental Funds
Nonmajor Funds:

Housing Fund 591,000 $ - $
Fiduciary Funds
Private-Purpose Trust Fund 591,000 -
Total $ 591,000 591,000 $
During the 2010-2011 fiscal year, the City’s Housing Authority loaned the City’s former redevelopment agency $985,000 to assist in the payment of its SERAF obligation in a prior year. The Successor Agency is repaying the loan with five payments of $197,000 through tax increment revenue received by the City’s Successor Agency to the former redevelopment agency.
134 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
33 NOTE 5 – INTERFUND ACTIVITY (Continued)
C. Interfund Transfers
The following schedule summarizes the City’s interfund transfer activity for the year ended June 30, 2021:

Transfers in Transfers out
Governmental Funds:

Major Funds:

General Fund - $ 1,723,350 $ (1),(2),(3)
Street Maintenance Fund 96,071 (2),(3) 1,000 (4)
Public Safety Services Fund 1,065,906 (1),(2),(3) -
Water Fund 408,421 (2),(3) -
Sewer Fund 113,951 (2),(3) -
Airport Fund 7,393 (2) -
Dial-a-Ride Fund 1,000 (4) -
Nonmajor Funds:

Public Safety Augmentation 150 (3) -
Aspen Mall Maintenance District 14,083 (2) -
Housing Fund 838 (3) -
OHV Grant Fund (2) 16,537 -
Totals $ 1,724,350 1,724,350 $
(1) The General Fund transferred $969,208 of past cannabis tax revenue to the Public Safety Fund for police and fire capital and operating expenditures.
(2) The General Fund transferred $703,642 to various funds to allocate the solar credit indifference settlement received by the City for past electricity costs that were not appropriately credited. (3) The General Fund transferred $50,800 to various fund for reimbursement of eligible CARES Act expenditures.
(4) The Street Maintenance Fund transferred $1,000 to the Dial-a-Ride Fund to subsidize the cost of a bike path.
135 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
34 NOTE 6 – LONG-TERM OBLIGATIONS
A. Governmental Activities Long-Term Debt
The following is a summary of long-term liability transactions of the City for governmental activities for the year ended June 30, 2021:

Balance Balance Due Within
July 1, 2020 Additions Repayments June 30, 2021 One Year Governmental Activities:

Direct Borrowings
Capital Leases – Vehicles 396,948 $ - $ (198,474) $ 198,474 $ 198,474 $ Capital Leases – Equipment 158,688 224,995 (116,130) 267,553 109,688 Total Direct Borrowings 158,688 621,943 (314,604) 466,027 308,162 Compensated Absences 716,371 719,308 (656,431) 779,248 549,129 Total $ 875,059 1,341,251 $ (971,035) $ 1,245,275 $ 857,291 $ Capital Leases – Vehicles
The City entered into a capital lease for a fire truck in June 2019. There is no interest rate on the lease and the final payment is due in June 2022. The original value of the fire truck was $793,985. The outstanding lease obligations at June 30, 2021 were $198,474. There is a provision whereby if the City is unable to make payment or does not comply with the covenants established in the lease agreement, the lender may declare the remaining principal and interest outstanding immediately due and payable or demand the return of the leased equipment.

The following is a schedule of future estimated minimum payments related for the capital lease described above:

Year Ending
June 30 Principal Interest Total
2022 $ - 198,474 $ 198,474 $
Total 198,474 $ - $ 198,474 $
Capital Leases – Vehicles
136 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
35 NOTE 6 – LONG-TERM OBLIGATIONS (Continued)
A. Governmental Activities Long-Term Debt (Continued)
Capital Leases – Equipment
The City entered into various leases for equipment which are classified as capital leases: one grader and 30 golf carts. Interest rates range from 0.00% to 7.10% and maturity dates range from November 2022 to June 2026.

The original value of the equipment was $384,805. The outstanding lease obligations at June 30, 2021 were $267,553. There is a provision whereby if the City is unable to make payment or does not comply with the covenants established in the lease agreement, the lender may declare the remaining principal and interest outstanding immediately due and payable or demand the return of the leased equipment.

The following is a schedule of future estimated minimum payments related for the capital leases described above:

Year Ending
June 30 Principal Interest Total
2022 $ 109,688 $ 7,757 $ 117,445
2023 65,903 2,887 68,790
2024 31,738 2,301 34,039
2025 31,738 2,119 33,857
2026 391 28,486 28,877
Total 267,553 $ 15,455 $ 283,008 $
Capital Leases – Equipment
B. Business-Type Activities Long-Term Debt
The following is a summary of long-term liability transactions of the City for business-type activities for the yearended June 30, 2021:

Balance Balance Due Within
July 1, 2020 Additions Repayments June 30, 2021 One Year Business-Type Activities:

Direct Borrowings
2015 Sewer Note 1,272,625 $ - $ (64,911) $ 1,207,714 $ 68,740 $ Capital Leases - Equipment - 70,272 (32,434) 37,838 34,813 Total Direct Borrowings 1,342,897 (97,345) - 1,245,552 103,553 Compensated Absences 149,177 230,015 (218,836) 160,356 116,345 Total $ 149,177 1,572,912 $ (316,181) $ 1,405,908 $ 219,898 $ 137 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
36 NOTE 6 – LONG-TERM OBLIGATIONS (Continued)
B. Business-Type Activities Long-Term Debt (Continued)
2015 Sewer Note
On April 1, 2015, the City entered into a loan agreement with TPB Investments, Inc., a wholly owned subsidiary of Western Alliance Bank for $1,579,771, bearing interest of 3.16% and payable semi-annually on November 1 and May 1, maturing November 1, 2033. The loan proceeds were used to advance refund the 2003 lease revenue bonds which had been used to reimburse the City for costs incurred in connection with the expansion of the City’s wastewater treatment plan and related facilities. The loan is secured by a pledge and lien on net revenues of the Sewer Fund. The outstanding principal balance of the 2015 Sewer note at June 30, 2021 was $1,207,714. There is a provision whereby if the City is unable to make payment or does not comply with the covenants established in the loan agreement, the lender may declare the remaining principal and interest outstanding immediately due and payable.

The following is a schedule of future estimated minimum payments related for the 2015 Sewer Note described above:

Year Ending
June 30 Principal Interest Total
2022 $ 68,740 $ 42,385 $ 111,125
2023 72,350 39,825 112,175
2024 75,802 37,137 112,939
2025 79,920 34,326 114,246
2026 83,962 31,368 115,330
2027-2031 477,652 107,510 585,162
2032-2034 19,334 349,288 368,622
Totals $ 311,885 1,207,714 $ 1,519,599 $
2015 Sewer Note
138 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
37 NOTE 6 – LONG-TERM OBLIGATIONS (Continued)
B. Business-Type Activities Long-Term Debt (Continued)
Capital Leases – Equipment
In August 2019, the City entered into a lease agreement for a backhoe that is classified as a capital lease. The original value of the equipment was $98,632 and includes an interest rate of 7.10% with a maturity date in July 2022. The outstanding lease obligation at June 30, 2021 was $37,838. There is a provision whereby if the City is unable to make payment or does not comply with the covenants established in the lease agreement, the lender may declare the remaining principal and interest outstanding immediately due and payable or demand the return of the leased equipment.

The following is a schedule of future estimated minimum payments related for the capital leases described above:

Year Ending
June 30 Principal Interest Total
2022 $ 1,568 34,813 $ 36,381 $
2023 3,025 7 3,032
Totals 37,838 $ 1,575 $ 39,413 $
Capital Leases - Equipment
Compensated Absences
The City’s policies relating to compensated absences are described in Note 1 of the Notes to the Basic Financial Statements. For business-type activities, the liability will be paid in future years from the governmental funds and enterprise funds, as applicable.
139 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
38 NOTE 7 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) A. General Information about the Pension Plan
Plan Description – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing Multiple-Employer Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors seven rate plans (three miscellaneous and four safety.) Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for nonduty disability benefits after 10 years of service. The death benefit is one of the following: The Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for the Plan are applied as specified by the Public Employees’ Retirement Law.

The rate plan provisions and benefits in effect at June 30, 2021 are summarized as follows:

Miscellaneous Miscellaneous Miscellaneous
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 - On or after
Hire date January 1, 2011 December 31, 2012 January 1, 2013 Benefit formula 3% @ 60 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 60 50 - 63 52 - 67
Monthly benefits, as a % of annual salary 2.0% to 3.0% 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 8.000% 7.000% 6.250% Required employer contribution rates 15.445% 9.281% 7.732% Safety Safety Safety
1st Tier 2nd Tier PEPRA
Prior to January 1, 2011 - On or after
Hire date January 1, 2011 December 31, 2012 January 1, 2013 Benefit formula 3% @ 50 2% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of annual salary 3.0% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 9.000% 9.000% 12.000% Required employer contribution rates 23.674% 19.214% 13.044% Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $1,219,906 for the fiscal year ended June 30, 2021. 140 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
39 NOTE 7 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) (Continued) A. General Information about the Pension Plan (Continued) Contributions – Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

The City’s contributions to the plan that were recognized as a part of pension expense for the year ended June 30, 2021 were $2,233,301.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $16,395,783.

The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability.

The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2019 and 2020 was as follows:

Proportion - June 30, 2019 0.1526%
Proportion - June 30, 2020 0.1507%
Change - Increase (Decrease) -0.0019%
For the year ended June 30, 2021, the City recognized pension expense of $2,927,802. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows
of Resources
Deferred Inflows of
Resources
Pension contributions subsequent to the measurement date $1,990,714 $ - Changes of assumptions - 86,538
Differences between actual and expected experience 1,052,969 - 423,300 -
- 366,494
- 363,632
Total $ 453,032 3,830,615 $
Net difference between projected and actual earning on plan investments
Change in employer's proportion
Differences between the employer's actual contributions and the employer's proportionate share of contributions
141 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
40 NOTE 7 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) (Continued) B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$1,990,714 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ended
June 30
2022 $ 242,305
2023 544,275
2024 393,536
2025 206,753
2026 -
Thereafter -
C. Actuarial Assumptions
The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase 3.30% to 14.20%(1)
Investment Rate of Return 7.15%(2)
Mortality Derived using CalPERS'
Membership Data for all Funds(3)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation (3) The mortality Table was developed based on CalPERS specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016.

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2017 valuation were based on the results of December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experiences Study can be found on the CalPERS website. 142 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
41 NOTE 7 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) (Continued) D. Discount Rate
The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected PERF cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both shortterm and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Asset Class(a)
New
Strategic
Allocation
Real Return
Years
1-10(b)
Real Return
Years
11+(c)
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period. (a) In the CalPERS CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
143 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
42 NOTE 7 – EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PLAN) (Continued) D. Discount Rate (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Discount Rate -1%

6.15%
Current Discount
Rate 7.15%
Discount Rate +1%

8.15%
$24,251,031 $16,395,783 $9,927,456
E. Pension Plan Fiduciary Net Position
Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

F. Payable to the Pension Plan
The City did not have an outstanding amount of contributions to the pension plan required for the year ended June 30, 2021.

NOTE 8 – SUMMARY DISCLOSURE OF SELF-INSURANCE CONTINGENCIES The City is self-insured for the first $100,000 on each general liability claim. The insurance coverage in excess of self-insured amount is provided by the California Intergovernmental Risk Authority (CIRA), formerly known as Public Agency Risk Sharing Authority of California (PARSAC), up to a limit of $40,000,000 per occurrence, with some sublimits for claims covered under CIRA’s Memorandum of Coverage.

Claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The City funds all claims payable, including those incurred but not reported, in the yearly deposit it pays to PARSAC, except for its self-insured retention.

Effective January 29, 1998, the City became a member of the PARSAC, now known as CIRA, a public entity risk pool currently operating as a common risk management and self-insurance program for 50 California municipalities/districts. The City pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for formation of CIRA provides that the pool will be self-sustaining through member premiums. The City continues to carry commercial insurance for all other risks of loss, including workers’ compensation insurance, property insurance with a $10,000 deductible and crime insurance with a $25,000 deductible.

CIRA publishes its own financial report for the fiscal year ended June 30, 2021, which can be obtained from California Intergovernmental Risk Authority, Folsom, California. There have been no significant changes in insurance coverage from the prior fiscal year. During the past three years, the amount of settlements has not exceeded the amount of insurance coverage.
144 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
43 NOTE 9 – CONTINGENCIES
The City is involved in various lawsuits including litigation with the California Department of Finance (DOF) in regards to the loan between the former redevelopment agency and the Subdivision Deferred Improvement Fund (SDI). See additional information in Note 10. If the DOF prevails, the possible amount of loss could be the entire loan amount including principal and interest. Although the outcome of the various lawsuits is not presently determinable, with the possible exception of the litigation with the DOF, it is the opinion of management and legal counsel that the resolution of these matters will not have a material adverse effect.

The City has received various state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material.

Proposition 218, which was approved by the voters in November 1996, will regulate the City’s ability to impose, increase, and extend taxes, assessments and fees. Any new, increased, or extended taxes, assessments and fees subject to the provisions of Proposition 218 provides that these taxes, assessments and fees are subject to the voter initiative process and may be rescinded in the future by voters. Therefore, the City’s ability to finance the services for which the taxes, assessments and fees were imposed may be significantly impaired. At this time, it is uncertain how Proposition 218 will affect the City’s ability to maintain or increase the revenue from taxes, assessments and fees.

On January 8, 1998, the City Council passed Ordinance No. 98-552, which allows an annual transfer not to exceed $290,000 from the Subdivision Deferred Improvement (SDI) Fund to maintain SDI improvements and pay for administrative expenses as permitted by the terms and conditions stated in said ordinance. During the 2015-2016 fiscal year, management reviewed current and prior year’s financial records and determined that the General Fund and the Street Maintenance Fund incurred expenditures as permitted by Article 3, Section 9-6303 (1)-(4), but did not accumulate and transfer the allowable expenditures. Management plans to perform an assessment in future years to determine the retroactive and cumulative maximum allowable year-to-date transfers per the aforementioned section, which may result in a material transfer out of the SDI Fund and into the General Fund and/or Street Maintenance Fund. As of June 30, 2021, no determination has been made with respect to the prior year accumulation of allowable expenditures.

Measure C, a special tax requiring an annual payment of $182.50 per property parcel, was approved by voters for six years beginning on June 1, 2018. The purpose of Measure C is to pay for salaries, equipment and other needs of the Police and Fire departments at a 50%/50% split. Measure C is expiring on June 30, 2024. During the fiscal year ended June 30, 2021, the City received $6,469,867 as a result of Measure C. 145 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
44 NOTE 10 – SUCCESSOR AGENCY TRUST FUND
On January 17, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with Assembly Bill 1X26 (the Bill”) which dissolved all redevelopment agencies in the State of California.

Under the control of an oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution of the redevelopment agency (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies are only allocated revenue in the amount that is necessary to pay estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

After the date of the dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City.

Long-Term Obligations
The following is a schedule of changes in long-term debt for the fiscal year ended June 30, 2021:

Balance Balance Due Within
June 30, 2020 Additions Repayments June 30, 2021 One Year Direct Borrowings:

City Loans - Principal 9,877,142 $ - $ - $ 9,877,142 $ - $ City Loans - Interest 10,807,082 - - 10,807,082 -
Total Direct Borrowings: 20,684,224 - 20,684,224 - -
2014 Tax Allocation Refunding Bond 7,550,000 (440,000) - 7,110,000 455,000 - 358,874 (25,332) 333,542 25,332
Total 28,593,098 $ - $ (465,332) $ 28,127,766 $ 480,332 $ 2014 Tax Allocation Refunding Bond
Premium
A description of long-term debt outstanding of the Successor Agency as of June 30, 2021 follows:

City Loans
The City advanced the Successor Agency funds for operations and has paid for costs at various times since the establishment of the Redevelopment Agency. Costs paid on behalf of the Successor Agency do not have a stated interest rate. The loans made to the Agency bear interest at various rates as specified below:

SDI Fund Land Note – Authorized amount $4,500,000; interest at 6.6% per annum.

SDI Fund Treatment Plant Note - Authorized amount $5,902,000; interest at 7.3% per annum. Principal and interest are to be repaid in 20 installments, commencing July 1, 2003.

At June 30, 2021, the principal balance outstanding was $9,877,142 and accrued unpaid interest was $10,807,082. The Department of Finance has disallowed payments for these loans and an allowance for uncollectible debt has been established in the Subdivision Deferred Improvements fund for the entire balance.

Additionally, as a result of the DOF’s determination, the City stopped accruing interest on the debt. However, the City is still attempting to obtain authorization from the Department of Finance allowing repayment by the Successor Agency to the City. Accordingly, the City has not removed the loans and related accumulated interest from the Successor Agency’s balance sheet.
146 October 11, 2022

CITY OF CALIFORNIA CITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
45 NOTE 10 – SUCCESSOR AGENCY TRUST FUND (Continued)
Long-Term Obligations (Continued)
2014 Tax Allocation Refunding Bonds
On August 6, 2014, the Agency issued $9,735,000 Successor Agency to the City of California City Redevelopment Agency California City Redevelopment Project Area Tax Allocation Refunding Bonds, Series 2014. Interest on the bonds is payable semi-annually on September 1 and March 1, maturing on September 1, 2034 and have various interest rates of 3.00% to 5.00%. There is a provision whereby if the City is unable to make payment or does not comply with the covenants established in the loan agreement, the lender may declare the remaining principal and interest outstanding immediately due and payable. The bond proceeds were used to advance refund the 2000 Series A, Subordinated 2000 Series A, and Tax Allocation Refunding Bonds 2000 Series B. The outstanding principal balance of the 2014 Refunding Bonds at June 30, 2021 was $7,110,000.

The following is a schedule of future estimated minimum payments related for the 2014 Tax Allocation Refunding Bonds described above:

Year Ending
June 30 Principal Interest Total
2022 $ 455,000 $ 281,988 $ 736,988
2023 480,000 258,988 738,988
2024 510,000 234,613 744,613
2025 525,000 208,863 733,863
2026 550,000 190,363 740,363
2027-3031 2,775,000 653,438 3,428,438
3032-3035 148,097 1,815,000 1,963,097
Total $ 1,976,350 7,110,000 $ 9,086,350 $
2014 Tax Allocation Refunding Bonds
147 October 11, 2022
46 REQUIRED SUPPLEMENTARY INFORMATION
148 October 11, 2022
47 CITY OF CALIFORNIA CITY

REQUIRED SUPPLEMENTARY INFORMATION

COST SHARING DEFINED BENEFIT PENSION PLAN

PROPORTIONATE SHARE OF NET PENSION LIABILITY
LAST 10 YEARS*
AS OF JUNE 30, 2021
2015 2016 2017 2018 2019 2020 2021

0.1749% 0.1727% 0.1610% 0.1558% 0.1554% 0.1526% 0.1507% $ 11,850,799 10,984,722 $ 13,935,222 $ 15,447,887 $ 14,979,476 $ 15,641,062 $ 16,395,783 $ $ 4,978,479 4,653,159 $ 5,585,009 $ 5,426,300 $ 5,648,964 $ 5,890,911 $ 6,179,728 $ Proportionate share of the net pension liability as
236.07% 238.04% 249.51% 284.69% 265.17% 265.51% 265.32% Plan fiduciary net position as a percentage

76.23% 74.91% 69.05% 68.60% 71.02% 70.88% 71.63%
NOTES TO SCHEDULEChanges in Benefit Terms – None
Changes in Assumptions – None
*Schedule is intended to show information for ten years. Additional years will be displayed as they become available.Proportion of the net pension liabilityProportionate share of the net pension liabilityCovered payroll percentage of covered payroll of the total pension liability 149 October 11, 2022
48 CITY OF CALIFORNIA CITY

REQUIRED SUPPLEMENTARY INFORMATION

COST SHARING DEFINED BENEFIT PENSION PLAN

SCHEDULE OF CONTRIBUTIONS
LAST 10 YEARS*
AS OF JUNE 30, 2021
2014 2015 2016 2017 2018 2019 2020 2021
Actuarially required contribution
$ 1,334,533 1,218,497 $ 1,622,773 $ 1,717,344 $ 1,795,425 $ 1,965,332 $ 2,233,301 $ 1,990,714 $ 1,334,533 1,218,497 1,622,773 1,717,344 1,795,425 1,965,332 2,233,301 1,990,714 $ - - $ - $ - $ - $ - $ - $ - $
$ 4,978,479 4,653,159 $ 5,585,009 $ 5,426,300 $ 5,648,964 $ 5,890,911 $ 6,179,728 $ 6,064,302 $

26.19% 26.81% 29.06% 31.65% 31.78% 33.36% 36.14% 32.83% *Schedule is intended to show information for ten years. Additional years will be displayed as they become available. (actuarially determined) determined contributionsContribution deficiency (excess)Covered payrollContributions as a percentage of covered payrollContributions in relation to the actuarially 150 October 11, 2022
49 CITY OF CALIFORNIA CITY

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL

GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Final Budget

REVENUES
Taxes 3,741,100 $ 3,741,100 $ 4,077,307 $ 336,207 $
Licenses and permits 1,249,100 1,249,100 1,862,907 613,807 Intergovernmental 790,800 790,800 903,879 113,079
Charges for services 349,800 349,800 435,576 85,776
Fines and forfeitures 12,200 12,200 10,860 (1,340)
Use of money and property 58,900 58,900 37,552 (21,348) Miscellaneous 15,000 15,000 791,355 806,355
Total revenues 6,216,900 6,216,900 8,134,436 1,917,536

EXPENDITURES
Current:

General government 2,422,373 2,422,373 2,729,658 (307,285) Parks and recreation 1,388,893 1,388,893 926,076 462,817 Public works 1,667,107 1,667,107 973,297 693,810
Capital outlay 44,100 44,100 192,270 (148,170)
Debt service:

Principal - - 43,507 (43,507)
Interest - - 2,787 (2,787)
Total expenditures 5,522,473 5,522,473 4,867,595 654,878 Excess of revenues over expenditures 694,427 694,427 3,266,841 2,572,414

OTHER FINANCING SOURCES (USES)
Transfers out (969,208) (969,208) (754,142) (1,723,350) Proceeds from capital lease - - 158,688 158,688
Total other financing sources (uses) (969,208) (969,208) (1,564,662) (595,454) Net change in fund balances (274,781) (274,781) 1,702,179 1,976,960 Fund balances - beginning 5,750,100 5,750,100 5,750,100 - Fund balances - ending $ 5,475,319 5,475,319 $ 7,452,279 $ 1,976,960 $ Budgeted Amounts Actual
Amount
151 October 11, 2022
50 CITY OF CALIFORNIA CITY

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL

STREET MAINTENANCE SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Final Budget

REVENUES
Intergovernmental 678,400 $ 678,400 $ 976,562 $ 298,162 $ Use of money and property 6,000 6,000 331 (5,669)
Miscellaneous - - 3,613 3,613
Total revenues 684,400 684,400 980,506 296,106

EXPENDITURES
Current:

Public works 824,873 824,873 830,508 (5,635)
Capital outlay 1,998,045 1,998,045 500,094 1,497,951
Debt service:

Principal - - 72,623 (72,623)
Interest - - 10,783 (10,783)
Total expenditures 2,822,918 2,822,918 1,408,910 1,414,008 Deficiency of revenues under expenditures (2,138,518) (2,138,518) 1,705,016 (433,502)

OTHER FINANCING SOURCES (USES)
Transfers in - - 96,071 96,071
Transfers out (162,000) (162,000) (1,000) 161,000
Total other financing sources (uses) (162,000) (162,000) 257,071 95,071 Net change in fund balances (2,300,518) (2,300,518) (338,431) 1,962,087 Fund balances (deficit) - beginning (70,316) (70,316) (70,316) - Fund balances (deficit) - ending $ (2,370,834) (2,370,834) $ (408,747) $ 1,962,087 $ Budgeted Amounts Actual
Amount
152 October 11, 2022
51 CITY OF CALIFORNIA CITY

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL

SUBDIVISION DEFERRED IMPROVEMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Final Budget

REVENUES
Use of money and property $ 1,600 1,600 $ (902,350) $ (903,950) $ Total revenues 1,600 1,600 (902,350) (903,950)

EXPENDITURES
Current:

Public works - - 30,533 (30,533)
Total expenditures - - (30,533) 30,533
Net change in fund balances 1,600 1,600 (932,883) (934,483) Fund balances - beginning 89,983,268 89,983,268 89,983,268 - Fund balances - ending $ 89,984,868 89,984,868 $ 89,050,385 $ (934,483) $ Budgeted Amounts Actual
Amount

153 October 11, 2022
52 CITY OF CALIFORNIA CITY

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE – BUDGET AND ACTUAL

PUBLIC SAFETY SERVICES SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Original Final Final Budget

REVENUES
Taxes 5,992,500 $ 5,992,500 $ 7,226,709 $ 1,234,209 $
Licenses and permits 25,500 25,500 22,960 (2,540)
Intergovernmental 174,800 174,800 196,361 21,561
Charges for services 67,300 67,300 176,110 108,810
Fines and forfeitures 115,000 115,000 35,680 (79,320)
Use of money and property 32,100 32,100 16,422 (15,678) Miscellaneous 17,500 17,500 30,183 12,683
Total revenues 6,424,700 6,424,700 7,704,425 1,279,725

EXPENDITURES
Current:

Public safety 6,550,737 6,550,737 6,966,555 (415,818)
Capital outlay - - 165,347 (165,347)
Debt service:

Principal 198,474 198,474 198,474 -
Total expenditures 6,749,211 6,749,211 (581,165) 7,330,376 Excess (deficiency) of revenues over (under) expenditures (324,511) (324,511) 698,560 374,049

OTHER FINANCING SOURCES (USES)
Transfers in 969,208 969,208 96,698 1,065,906
Total other financing sources (uses) 969,208 969,208 96,698 1,065,906 Net change in fund balances 644,697 644,697 1,439,955 795,258 Fund balances (deficit) - beginning (1,612,547) (1,612,547) (1,612,547) - Fund balances (deficit) - ending (967,850) $ (967,850) $ (172,592) $ 795,258 $ Budgeted Amounts Actual
Amount
154 October 11, 2022
53 SUPPLEMENTARY INFORMATION
155 October 11, 2022
54 CITY OF CALIFORNIA CITY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
Special Revenue Funds
Supplemental Public Aspen Mall
Special Law Safety Maintenance
Tax Enforcement Augmentation District Housing
ASSETS
Cash and investments 11,376 $ 507,356 $ 287,186 $ 167,856 $ 946,175 $ Receivables:

Interest 10 - - 150 -
Intergovernmental - - 17,585 - -
Advance to Successor Agency - - - - 591,000
Total assets $ 507,356 11,386 $ 304,771 $ 168,006 $ 1,537,175 $

LIABILITIES
Accounts payable - $ - $ - $ 2,388 $ 18,760 $
Deposits payable - - - - 47,700
Due to other funds - - - - -
Total liabilities - - - 2,388 66,460

FUND BALANCES
Restricted for:

Public safety - 507,356 304,771 - -
Parks and recreation - - - - -
Community development - - - 165,618 1,470,715
Assigned for:

Community development 11,386 - - - -
Unassigned - - - - -
Total fund balances (deficits) 11,386 507,356 304,771 165,618 1,470,715 Total liabilities and fund balances 11,386 $ 507,356 $ 304,771 $ 168,006 $ 1,537,175 $ 156 October 11, 2022
55 CITY OF CALIFORNIA CITY

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(Continued)
Special Revenue Funds Total
Nonmajor
Parks and COPS OHV OHV EMS Proposition 39 Governmental
Recreation Recovery Grant Grant AB109 Funds
ASSETS
Cash and investments 12,691 $ - $ - $ 389 $ 105,374 $ 2,038,403 $ Receivables:

Interest - - - - - 160
Intergovernmental - 114,367 - - 131,952 -
Advance to Successor Agency - - - - - 591,000
Total assets $ - 12,691 $ 114,367 $ 389 $ 105,374 $ 2,761,515 $

LIABILITIES
Accounts payable - $ - $ 10,243 $ - $ - $ 31,391 $
Deposits payable - - - - - 47,700
Due to other funds - 150,466 732,103 - - 882,569
Total liabilities - 150,466 742,346 - - 961,660

FUND BALANCES
Restricted for:

Public safety - - - 389 105,374 917,890
Parks and recreation 12,691 - - - - 12,691
Community development - - - - - 1,636,333
Assigned for:

Community development - - - - - 11,386
Unassigned - (150,466) (627,979) - - (778,445)
Total fund balances (deficits) 12,691 (150,466) (627,979) 389 105,374 1,799,855 Total liabilities and fund balances 12,691 $ - $ 114,367 $ 389 $ 105,374 $ 2,761,515 $ 157 October 11, 2022
56 CITY OF CALIFORNIA CITY

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Supplemental Public Aspen Mall
Special Law Safety Maintenance
Tax Enforcement Augmentation District Housing

REVENUES
Taxes 6,703 $ - $ 187,301 $ 23,892 $ - $
Intergovernmental - 156,727 - - -
Charges for services - - - - 365,337
Use of money and property 65 - - 1,086 172
Miscellaneous - - - - 2,316
Total revenues 6,768 156,727 187,301 24,978 367,825

EXPENDITURES
Current:

Public safety - - 173,356 - -
Community development - - - 22,779 430,267
Capital outlay - - - - 14,118
Total expenditures - - 173,356 22,779 444,385
156,727 6,768 13,945 2,199 (76,560)

OTHER FINANCING SOURCES (USES)
Transfers in - - 150 14,083 838
Total other financing sources (uses) - - 150 14,083 838 Net change in fund balances 6,768 156,727 14,095 16,282 (75,722) Fund balances (deficits) - beginning 4,618 350,629 290,676 149,336 1,546,437 Fund balances (deficits) - ending 11,386 $ 507,356 $ 304,771 $ 165,618 $ 1,470,715 $ Excess (deficiency) of revenues over
(under) expenditures
158 October 11, 2022
57 CITY OF CALIFORNIA CITY

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(Continued)
Special Revenue Funds Total
Nonmajor
Parks and COPS OHV OHV EMS Proposition 39 Governmental
Recreation Recovery Grant Grant AB109 Funds

REVENUES
Taxes - $ - $ - $ - $ - $ 217,896 $
Intergovernmental - - 380,535 - - 537,262
Charges for services - - - - - 365,337
Use of money and property - - - 2 - 1,325
Miscellaneous - - - - - 2,316
Total revenues - - 380,535 2 - 1,124,136

EXPENDITURES
Current:

Public safety - - 546,994 - - 720,350
Community development - - - - - 453,046
Capital outlay - - 2,681 - - 16,799
Total expenditures - - 549,675 - - 1,190,195
- - (169,140) 2 - (66,059)

OTHER FINANCING SOURCES (USES)
Transfers in - - 16,537 - - 31,608
Total other financing sources (uses) - - 16,537 - - 31,608 Net change in fund balances - - (152,603) 2 - (34,451)
Fund balances (deficits) - beginning 12,691 (150,466) (475,376) 387 105,374 1,834,306 Fund balances (deficits) - ending 12,691 $ (150,466) $ (627,979) $ 389 $ 105,374 $ 1,799,855 $ Excess (deficiency) of revenues over
(under) expenditures
159 October 11, 2022

CITY OF CALIFORNIA CITY

MANAGEMENT REPORT
AND
AUDITOR’S

COMMUNICATION LETTER
FOR THE YEAR ENDED JUNE 30, 2021
160 October 11, 2022

CITY OF CALIFORNIA CITY
MANAGEMENT REPORT AND AUDITOR’S COMMUNICATION LETTER
FOR THE YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Required Communications .................................................................................................................. 1 - 2 Independent Auditor’s Report on Internal Controls over Financial Reporting, Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................... 3 - 4 Schedule of Findings ................................................................................................................................ 5 Summary Schedule of Prior Audit Findings ............................................................................................ 6 Corrective Action Plan ............................................................................................................................. 7 161 October 11, 2022
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
To the City Council of the
City of California City
California City, California
We have audited the financial statements of the City of California City (City), for the year ended June 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter dated June 8, 2021.

Professional standards require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2021. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Accounting estimates are used in determining the depreciable lives and methods used for capital assets, compensated absences, and funding progress of CalPERS pension liability. We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were the disclosures about the employee retirement plan disclosed in Note 7 to the financial statements.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. We did not identify any significant audit adjustments.
162 October 11, 2022
2 Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated September 20, 2022.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings and Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

September 20, 2022
163 October 11, 2022
BRYANT L. JOLLEY
CERTIFIED PUBLIC ACCOUNTANTS Bryant L. Jolley C.P.A.

Ryan P. Jolley C.P.A.

Darryl L. Smith C.P.A.

Luis A. Perez C.P.A.

Lan T. Kimoto
901 “N” STREET, SUITE 104 FIREBAUGH, CALIFORNIA 93622 PHONE 559.659.3045 FAX 559.659.0615 INDEPENDENT AUDITOR’S REPORT ON INTERNAL

CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council of the
City of California City
California City, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of California City, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated September 20, 2022.

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

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

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2021-001 that we consider to be a significant deficiency.
164 October 11, 2022
4 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City’s Response to Findings
The City’s responses to the findings identified in our audit are described in the Corrective Action Plan. The City’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion in it.

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

Bryant L. Jolley, CPA
September 20, 2022
165 October 11, 2022
5 CITY OF CALIFORNIA CITY

SCHEDULE OF FINDINGS
FOR THE YEAR ENDED JUNE 30, 2021
Finding 2021-001 Accounting Oversight (Significant Deficiency) Condition: The Finance Department does not have adequate oversight over accounting functions regarding recording of year end accruals and the development of internal controls for the year end closing. A strong system of internal controls and management review requires that general ledger account balances be properly reconciled to a subsidiary ledger or other adequate supporting documentation on a periodic basis, as well as during the year-end financial close process in order to accurately and completely close the current year general ledger in a timely manner. Management is responsible for maintaining its accounting records in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).

Criteria: A strong system of internal controls and management review requires that there is adequate oversight of the financial and accounting activity and maintenance of all financial records throughout the City.

Cause: The Finance Department does not have adequate controls in place over the general accounting procedures for timely reconciliation of accounts and recording of year-end accruals. The City’s accountants were relatively new to the City and, in addition to the demands of closing a City’s general ledger, there were numerous other financial statement, compliance, and control environment matters to resolve that were inherited from accounting errors and decisions made in previous fiscal years.

Effect: Inadequate Finance Department oversight over the City’s accounting could result in a misappropriation of assets, material accounting errors, reporting delays, and/or noncompliance with grant agreements.

Recommendation: We recommend the City create a closing checklist to assist with the preparation of audit schedules that are complete, accurate, and reconcile to the City’s general ledger account balances. Additionally, ensure that a system is in place to allow the City to perform this in a timely manner.
166 October 11, 2022
6 CITY OF CALIFORNIA CITY

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2021
Finding 2020-001: Accounting Oversight – Partially Implemented, see current year Finding 2021-001.

Finding 2020-002: Cash Reconciliation – Implemented
167 October 11, 2022
Finding Number Finding Description
CITY
21000 Hacienda Blvd.

California City, CA 93505
760-373-8661
www.californiacity-ca.gov
California City
Corrective Action Plan
June 30, 2021
Planned Corrective Action
Jeanie O'Laughlin
MAYOR
Nicholas Lessenevitch

MAYOR PRO TEM
Kelly Kulikoff
Jim Creighton
Karen Macedonio

COUNCIL MEMBERS
Jim Hart

INTERIM CITY MANAGER
Anticipated
Completion Date
2021-001 Accounting Oversight
Finance has taken over the responsibility of all accounting, internal control and cash management function within the city. Additionally, a closing checklist was created to
reconcile the City's general ledger.
12/31/2022
jim Hart "1<ennycooper
Interim City Manager Finance Manager
Responsible
Contact Person
Finance Mgr
168 October 11, 2022

CITY COUNCIL AGENDA ITEM
October 11, 2022
TO: Mayor and City Council
FROM: Dr. Jim Hart – City Manager
SUBJECT: FAST TRACK RESOLUTION 10-22-2952 (PURSUANT TO
RESOLUTION 05-19-2090)
BACKGROUND: In an effort to bring growth and development to the City, Staff with the help of citizens and organizations, have examined local challenges known to the development community which can adversely impact land use(s) including commercialindustrial and residential opportunities.

Staff met with the local development community on July 7 and 14, 2022, and September 28, 2022, to discuss ways to positively enhance the permitting process for development covered under the Permit Streamlining Act.

These meetings came about due to the Council’s adoption of Resolution 05-19-2090 in 2019 directing staff to bring a ‘Fast Track’ Resolution to City Council for consideration and adoption. The Resolution attached,10-22-2952, is the result of significant efforts by city staff and the development community with due consideration of appropriate local controls.

RECOMMENDATION: The City Council approve the Resolution adopting a Fast Track process to improve processing and tracking of applications submitted to the planning and building departments.

ATTACHMENTS:

1. Resolution 10-22-2952
FISCAL IMPACT: Planning and Building Dept. are generally revenue neutral and should improve fiscal neutrality with streamline processing of applications. Additional staff may need to be added or contracted for to meet the deadlines since there is still a backlog.

ENVIRONMENTAL ACTION: Residential land uses are consistent with the general plan. Commercial and Industrial land uses are subject to extensive CEQA laws and cannot be avoided.

NB 2.
169 October 11, 2022
RESOLUTION NO. 10-22-2952

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CALIFORNIA CITY INTRODUCING FAST TRACK PERMITTING
POLICY
WHEREAS, the Permit Streamlining Act (“PSA”), California Government Code § 65920 et seq, enacted in 1977 was established in order to expedite the processing of permits for development projects by imposing time limits within which state and local government agencies must either approve or disapprove permits; and WHEREAS, on May 28, 2019, the City of California City (“City”) adopted Resolution 05-19-2090 which temporarily waived, for a period of 3 years, residential development impact fees for water and sewer and water connection fees; and directed staff to develop a “Fast Track Resolution” for adoption as policy to include expedited review and decision of entitlements subject to the PSA and a separate process for expedited review, and permitting of building and engineering plans and documents; and WHEREAS, pursuant to Resolution 05-19-2090, the Fast Track process shall include timelines for processing project, entitlement and environmental documents; and WHEREAS, “Fast Track” is defined as a commitment by City staff to expedite the plan review and permit process within a structured timeline, tracking status of applications from submission to approval; and
WHEREAS, on April 27, 2021, the City of California City adopted Resolution 04- 21-2857 extending the temporary waiver of the development impact fees and water connection fee for 5 years commencing from March 23, 2021. All other provisions of Resolution 05-19-2090 shall remain in full force and effect including the City Council’s instructions to staff to develop a Fast Track permitting process; and WHEREAS, on January 14, 2020, the City of California City adopted Resolution 01-20-2815 establishing a new Master Residential Plan Review fee for residential Master Plan sets, which contain identical sets; and
WHEREAS, local community developer and Kern County Taxpayers Association Director, Mr. D.J. Twohig and then City Manager, Doug Dunford, of California City, cohosted meetings July 7, 2022, and July 14, 2022, including assembly of developer working group both virtually and in City Hall chambers, respectively, to specifically address the development industry questions and comments relating to unnecessary impediments involving entitlement and permitting processes; and 170 October 11, 2022
WHEREAS, Interim City Manager, Dr. Jim Hart, and Mr. Twohig continued the developer working group meeting September 29, 2022, to review and conclude the Draft ‘Fast Track’ Resolution 11-10-2952; and
WHEREAS, the City recognizes the burdens that unnecessary impediments and delays in processing applications for entitlement and new construction permits pose in attracting and sustaining momentum with residential, commercial, industrial development; and
WHEREAS, the City further recognizes the significance and importance of developers’ investment of ingenuity, capital, time and talent, while encountering risks, etc. as necessary to create jobs, tax base and housing opportunities in the community; and WHEREAS, as part of the permitting process, under California Residential Code (“CRC”) R106.1, Submittal Documents consisting of construction documents and other data shall be submitted in 2 or more sets with each application for a permit. The construction documents shall be prepared by a registered design professional where required by the statutes of the jurisdiction in which the project is to be constructed. Where special conditions exist, the building official is authorized to require additional construction documents to be prepared by a registered design professional.

WHEREAS, the building official is authorized to waive the submission of construction documents and other data not required to be prepared by a registered design professional if it is found that the nature of the work applied for is such that reviewing of construction documents is not necessary to obtain compliance with the CRC; and WHEREAS, under Health and Safety Code 17960 (a), the governing body of a local agency may authorize its enforcement agency to contract with or employ a private entity or persons on a temporary basis to perform the plan-checking function; and WHEREAS, under Health and Safety Code 17960 (d), when there is an excessive delay in checking plans and specifications submitted as a part of an application for a residential building permit, the local agency shall, upon request of the applicant, contract with or employ a private entity or persons on a temporary basis to perform the planchecking; and WHEREAS, the City Manager or Building Official is responsible to ensure the plan review and permit process is concurrently managed within a structured timeline in accordance with state law; and
WHEREAS, the City Manager or designee is responsible for tracking the status of applications from submission to approval, adopting local conditions for a rural community as prescribed in the CRC; and
WHEREAS, City staff and developer working group collectively recommend adopting the following public relations message to enhance the City’s customer service 171 October 11, 2022
orientation, “Our Vision includes Fast Track permitting and attractive residential permit fees.”
NOW THEREFORE, the City Council of the City of California City resolves as follows:

Section 1. Plan check shall occur upon submission and within 10 working days for residential building plan check and within 30 days for commercial building plan check.

Timelines for Entitlements subject to the PSA: 30 calendar day responses to Site Plan Review (“SPR”) applications and environmental documents (if complete). Staff will launch iWorQ tracking and issue passcodes to applicants to monitor the processing. Upon submission of entitlement application, a hearing date will be calendared (subject to completed application). Applicants will be informed by the Planning Department within 10 working days of application for SPR as to whether the application is complete. SPR review and Planning Director’s hearing shall be completed within 90 calendar days of the date an application is determined complete and all fees have been paid by the applicant.

An application number (receipt) will be issued and date stamp upon submission.

Section 2. City Manager is accountable to build the management team which includes City employees, entities and/or private persons as necessary to manage staff professional responsiveness and timelines noted in Section 1 herein (consistent with the PSA and Health and Safety Code § 17960.1.

Section 3. Responsiveness to phone calls, emails, and/or over the counter communications shall occur before leave daily or the following work day at start up.

Section 4. Staff will accept both electronic and/or over the counter submissions of applications as described in CRC.

Section 5. Staff will apply CRC regulations to permit applications, including, but not limited to, local known climatic, topographical or geological conditions.

Section 6. Soils testing shall not be required on residential projects unless greater than one acre or the soil cannot support greater than 1500 psf. Foundation designs by registered design professionals may include design specification for worst case local soil conditions.

Section 7. Per City Master Plan, Residential septic design may follow the historical local conditions for septic installation, per engineer recommended specifications.

Section 8. Staff will review within 1-5 working days, Master Plan Set Plot Plans (which include the subject Site Plan) for those new residential sites when identical and referenced to a previously approved Master Plan. Applicant may defer Survey Plat, solar and fire sprinkler design, subject to field inspection. 172 October 11, 2022
Section 9. Severability. If any section, sub-section, sentence, clause, phrase or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Resolution. The City Council of California City hereby declares that it would have adopted the Resolution and each section, sub-section, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, sub-sections, sentences, clauses, phrases or portions to be declared invalid or unconstitutional.

This Resolution was approved on the ___ day of October 2022 by the following vote:

AYES:

NOES:

ABSENT:
_____________________________
Jeanie O’Laughlin, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ______________________________ Socorro Chavez, City Clerk Victor Ponto, City Attorney
173 October 11, 2022

CITY COUNCIL
October 11, 2022
TO: Mayor and City Council
FROM: Dr. Jim Hart – Interim City Manager
SUBJECT: Water Standby Charge-Intention to Levy
___________________________________________________________________

BACKGROUND
California City operates a water system that was built to serve a large number of parcels that were planned for development at the time the water system was designed. Since Fiscal Year 1993-94, the City has charged a Water Standby Charge to undeveloped parcels that, when developed, will receive service from the City's existing water system.

The amount of this charge ranges from $15 to $25 per year. The charge is collected on the property tax roll. Once a parcel is connected to the system and begins receiving (and paying for) water service, it stops assessing the standby charge.

Each year, the City Council holds a public hearing to approve placing the standby charges on the property tax roll. The attached resolution calls that hearing for October 25, 2022 and takes certain related actions.

The rate of the standby charge is unchanged from past years and has not been increased since 1993-94.

RECOMMENDATION
Adopt “RESOLUTION NO. 10-22-2953 OF THE CITY COUNCIL OF THE CITY OF

CALIFORNIA CITY INITIATING PROCEEDINGS FOR THE ESTABLISHMENT OF THE WATER STANDBY CHARGES FOR FISCAL YEAR 2022-23”

FISCAL IMPACT
NONE

ENVIRONMENTAL ACTION
NONE

ATTACHMENTS
Proposed Resolution No. 10-22-2953, initiating the proceedings by setting the Public Hearing.

NB 3.
174 October 11, 2022
RESOLUTION NO. 10-22-2953

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CALIFORNIA CITY INITIATING PROCEEDINGS FOR THE

ESTABLISHMENT OF THE WATER STANDBY CHARGES
FOR FISCAL YEAR 2022-23
THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY RESOLVES as follows:

Section 1. Purpose
This Resolution initiates proceedings to levy the City’s existing water standby charges for Fiscal Year 2022-23.

Section 2. Findings
The City Council finds, determines and declares as follows:

A. Due to the size of the City and the interspersing of developed and undeveloped land within many areas of the City, the City operates and maintains a very extensive water system that is designed to serve not only the developed parcels in the City but also the territory that has not yet been developed.

B. The oversized water system is outdated, in need of substantial rehabilitation and improvements, and expensive to operate and maintain.

C. The Uniform Standby Charge Procedures Act (Gov’t Code Sec. 54984 et seq.) (the “Act”) authorizes the City to fix a water standby charge on land within the City that derive benefit from the availability of facilities to provide water service, even if that land does not actually use the water service.

D. In 1992 and 1993, the City Council conducted proceedings pursuant to the Act to fix a standby charge (the “Standby Charge”) to fund for the construction and reconstruction of water production, transmission and storage facilities.

E. Since the Standby Charge was first fixed, (i) the City has annually taken action to continue the Standby Charge pursuant to Section 54984.7 of the Act and (ii) the Standby Charge has been collected on each year’s property tax roll.

F. The rate of the Standby Charge has not changed since it was initially levied in Fiscal Year 1992-1993.

G. Pursuant to Section 5(a) of Article XIII D of the California Constitution, the Standby Charge is exempt from the procedures and approval process set forth in Section 4 of Article XIII D of the California Constitution.

Section 3. Report of Engineer
175 October 11, 2022
A qualified engineer’s report is on file in the Office of the City Clerk and incorporated herein by reference. The proposed standby charge is based upon the report. The report includes the following: a description of the charge and the method by which it will be imposed; a compilation of the amount of the charge proposed for each parcel subject to the charge; a statement of the methodology and rationale followed in determining the degree of benefit conferred by the service for which the charge is made; and a discussion of the other factors described in Section 54984.2 of the Act.

Section 4. Affected Lands
A list of the assessor’s parcel number (or other identifying information for any parcel for which an assessor’s parcel number is not listed) of each parcel to be charged is on file in the Office of the City Clerk and incorporated herein by reference. The list also includes the amount of the charge for each listed parcel.

Section 5. Proposed Charges
The proposed charge is as follows:
(a) Effective July 1, 2022, water standby charges shall be paid by certain property within the City not receiving water service as follows:
(1) “Acres 1": Within recorded tracts for which a Subdivision Deferred Improvement “SDI” Agreement exists, parcels not fronting upon a water main shall pay $15.00 per parcel per annum.
(2) “Acres 2": Within recorded tracts for which an SDI agreement exists, parcels fronting upon a water main shall pay $20.00 per parcel per annum. (3) “Acres 3": Within recorded tracts for which an SDI Agreement does not exist, parcels shall pay $25.00 per parcel per annum.
(b) Notwithstanding the foregoing, water standby charges shall not be paid by certain property within the City as follows:
(1) Parcels contained in a condominium, townhouse or other multi-family residential development shall not pay a standby charge, provided common area parcels shall pay a charge at the rate specified in subsection (a).
(2) Ownership interests consisting solely of mineral rights shall not pay standby charges. (3) Parcels receiving water service as of the effective date shall not pay a standby charge.

Section 6. Public Hearing
(a) The Council shall conduct a public hearing at the City Council Chambers located at 21000 Hacienda Blvd, California City, California, on October 25, 2022. At the publish hearing, the Council will hear and consider all objections or protests, if any, to the proposed charges. (b) The City Clerk is directed to publish notice of the public hearing.

Section 7. Encouragement of Public Participation
176 October 11, 2022
The City Council has adopted this Resolution and will hold the noticed public hearing referenced in Section 6 of the Resolution as part of the City’s commitment to open government and public participation. The adoption of this Resolution should not be interpreted as an admission by the City that the Resolution, or any of its contents, is required under applicable state law.

PASSED, APPROVED AND ADOPTED this 11th Day of October 2022 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: ____________________
Jeanie O'Laughlin, Mayor
Socorro Chavez, City Clerk
(SEAL)
177 October 11, 2022

COUNCIL AGENDA ITEM
October 11, 2022
PREPARED BY: Dr. Jim Hart, Interim City Manager
SUBJECT: Approval of Service Order with Clear Gov for City Budget Preparation

BACKGROUND/ DISCUSSION
The City needs to finalize the Fiscal Year 22-23 City Budget. For the past few years the City has used outside consultants to assist with preparation of the budget. For Fiscal Year 21-22 the City paid approximately $25,000 for that assistance and it took several months to complete.

Staff researched other companies who specialize in developing City budgets to understand their process, cost and completed product. That review found Clear Gov who does city budgets in California (West Hollywood, Lake Forest, just to name a couple) and other cities throughout the country. As a result of that review, staff met with Clear Gov and reviewed their product and amenities. The completed product is impressive, and they offer a web based interactive component that is available for viewing by the staff, council and approved public members.

The biggest challenge staff faces is preparing and presenting a budget in a short period of time. Clear Gov has committed that they can have a budget prepared and ready for presentation before the end of November 2022.

Joe Eiskant with Clear Gov will be making a presentation through zoom at the City Council meeting to demonstrate their city budget product.

FISCAL IMPACT
The initial contract is for $19,240.00 which includes a one-time set up fee of $2,880.00.

Following years will be at a lessor rate since the one-time fee is dropped. Additionally, for the next 3 years there will not be an increase in the fee.

NB 4.
178 October 11, 2022
If the City choses, there is a cancellation clause requiring at least 60 days written notice prior to the annual expiration date.

COUNCIL OPTIONS

1. Approve the Service Order

2. Not approve the Service Order

3. Direct Staff to pursue other options

RECOMMENDATION
Staff recommends that the City Council approve the Service Order with Clear Gov in the amount of $19,240.00

ATTACHMENTS
Service Order
Presentation
179 October 11, 2022
180 October 11, 2022
181 October 11, 2022
182 October 11, 2022
1 183 October 11, 2022
Budget Cycle Management
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Operational Budget
Personnel Budget
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Modernization is a Must!
2 184 October 11, 2022
Budget Cycle Management
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3 185 October 11, 2022
Budget Cycle Management
4 Your California ClearGov Community
186 October 11, 2022
Budget Cycle Management
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5 187 October 11, 2022
Budget Cycle Management
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6 188 October 11, 2022
Budget Cycle Management
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7 189 October 11, 2022
Budget Cycle Management
Operational Budgeting | Product Overview
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8 190 October 11, 2022
Budget Cycle Management
Digital Budget Book | Product Overview
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9 191 October 11, 2022
Budget Cycle Management
Q & A
10 192 October 11, 2022
ITEM NO.

COUNCIL AGENDA ITEM
October 11, 2022
PREPARED BY: Councilmember Kulikoff
SUBJECT: Pothole and Roads Problem

BACKGROUND/ DISCUSSION
During the September 27, 2022 City Council meeting, Councilmember Kulikoff requested this item on the October 11, 2022 City Council meeting agenda. California City’s roads are falling apart. Vehicle damage is a constant risk with potholes everywhere. Ideas are needed from City Council and through public participation in order to deliver viable solutions.

FISCAL IMPACT
Minimal fiscal impact for discussion.

COUNCIL OPTIONS
Send this item to the Planning Commission for further consideration.

Other City Council direction.

RECOMMENDATION
CITY COUNCIL AND PUBLIC TO DISCUSS POSSIBLE SOLUTIONS. BRING BACK AN ACTION ITEM, WORKSHOP, OR TRAIL ITEM FOR FURTHER DISCUSSION.

ATTACHMENTS

PICTURE OF A POTHOLE IN CALIFORNIA CITY
NB 5.
193 October 11, 2022
194 October 11, 2022

California City City CouncilOctober 11, 2022

California City City Council
October 11, 2022