March 29, 2023
To the City Council of
The City of Cloverdale
124 N Cloverdale Blvd.
Cloverdale, CA 95425
We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Cloverdale for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated March 29, 2023. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
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 of Cloverdale are described in Note 1 to the financial statements.
As described in Note 1D to the financial statements, the City of Cloverdale changed accounting policies related to leases by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 87, Leases in 2022. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Activities on page 16. We noted no transactions entered into by the City of Cloverdale 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. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Management’s estimate of the liabilities, deferred inflows, and deferred outflows related to both pension benefits (Note 13) and Other Post-Employment Benefits (OPEB) (Note 12). These estimates are based on the provisions of GASB No. 68 and GASB No. 75, respectively, and actuarial methodology and assumptions. 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. Management’s estimate of the depreciation expense is based on the useful lives of the underlying assets. 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.
158
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 disclosure of cash and investment details for the City as described in Note 4 to the financial statements.
The disclosure of plan details for the Pension plans as described in Note 13 to the financial statements.
The disclosure of plan details for Other Post-Employment Benefits as described in Note 12 to the financial statements.
The disclosure regarding the prior period adjustment as described in Note 15 to the financial statements.
The financial statement disclosures are neutral, consistent, and clear.
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. The attached schedule summarizes uncorrected misstatements of the financial statements.
Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Additionally, the attached schedule summarizes the material misstatements detected as a result of audit procedures that were corrected by management.
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 auditors’ 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 March 29, 2023.
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 of Cloverdale’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City of Cloverdale’s auditors. 159
160
Client: CITY OF CLOVERDALE
Engagement: FY2022 Audit
Current Period: 06/30/2022
Workpaper: Adjusting Journal Entry Report
Account Description
Workpaper
Reference Debit Credit Net Income Effect
Audit 01
Client accommodating entry to balance TB
100-10-104-42150-000 Misc Contract Services 1.00 0.00
700-00-000-25300-000 Fund Balance 490.00 0.00
Total 491.00 0.00 (1.00)
Audit 02 FS 01a
BR: Reclassification of transfers from 702 to 100 as revenue 100-00-999-39999-000 Interfund Transfers In 0.00 0.00
100-00-000-34800-000 Overhead & Adminstration 0.00 0.00 Total 0.00 0.00 0.00
Audit 03
AH: Client adj je- to record completion of pipelining project 630-00-000-16201-000 Infrastructure-Pipelines 172,990.00 0.00 630-40-801-49130-000 Construction 0.00 172,990.00
Total 172,990.00 172,990.00 172,990.00
Audit 04
AH: Client adj je- to correct depreciation
600-00-998-42395-000 Depreciation 641,527.00 0.00
600-00-000-19900-000 Accumulated Deprec - All Assets 0.00 641,527.00 600-00-000-19900-000 Accumulated Deprec - All Assets 616,019.43 0.00 600-00-998-42395-000 Depreciation 0.00 616,019.43
630-00-998-42395-000 Depreciation 362,708.62 0.00
630-00-000-19900-000 Accumulated Deprec - All Assets 0.00 362,708.62 630-00-000-19900-000 Accumulated Deprec - All Assets 329,416.77 0.00 630-00-998-42395-000 Depreciation 0.00 329,416.77
880-00-998-42395-000 Depreciation 1,391,628.29 0.00
880-00-000-19900-000 Accumulated Deprec - All Assets 0.00 1,391,628.29 880-00-000-19900-000 Accumulated Deprec - All Assets 1,299,238.10 0.00 880-00-998-42395-000 Depreciation 0.00 1,299,238.10
Total 4,640,538.21 4,640,538.21 (151,189.61)
Audit 05
AH: Client adj je- to book fixed assets additions
880-00-000-16500-000 Machinery & Equipment 29,526.00 0.00 880-00-000-27000-000 Invstmnt In Gen Fixed As 0.00 29,526.00 880-00-000-16500-000 Machinery & Equipment 11,070.00 0.00 880-00-000-27000-000 Invstmnt In Gen Fixed As 0.00 11,070.00 880-00-000-16800-000 Vehicles 6,521.86 0.00
880-00-000-27000-000 Invstmnt In Gen Fixed As 0.00 6,521.86 880-00-000-16600-000 Construction in Progress 31,661.00 0.00 880-00-000-27000-000 Invstmnt In Gen Fixed As 0.00 31,661.00 880-00-000-16600-000 Construction in Progress 45,905.00 0.00 880-00-000-27000-000 Invstmnt In Gen Fixed As 0.00 45,905.00 880-00-000-16600-000 Construction in Progress 6,292.98 0.00 880-00-000-27000-000 Invstmnt In Gen Fixed As 0.00 6,292.98 880-00-000-16600-000 Construction in Progress 7,872.00 0.00 880-00-000-27000-000 Invstmnt In Gen Fixed As 0.00 7,872.00 Total 138,848.84 138,848.84 0.00
Audit 06 N 01
KPK: Move actuarial pension to expense
630-20-202-41230-008 PERS Unfunded Liability Pmt 50,363.0 0.0 0 0 630-00-000-25300-000 Fund Balance 0.0 50,363.0 0 0
670-40-800-41230-008 PERS Unfunded Liability Pmt 2,515.0 0.0 0 0 670-00-000-25300-000 Fund Balance 0.0 2,515.0 0 0
600-20-202-41230-008 PERS Unfunded Liability Pmt 75,770.0 0.0 0 0 600-00-000-25300-000 Fund Balance 0.00 75,770.00
Total 128,648.00 128,648.00 (128,648.00)
GRAND TOTAL 5,081,516.05 5,081,025.05 (106,848.61)
161
Financial Statements
as of June 30, 2022
Cropper Accountancy Corporation
1 162
Audit Results
Unmodified Audit Opinion (page 1)
Internal Control over Financial Reporting Compliance
and Other Matters (page 79)
Communication with Those Charged with Governance
(SAS 114)
Sensitive estimates
Sensitive disclosures
2 163
Noteworthy Items
Statement of Net Position (page 15) – Full Accrual
Assets are $119M / Liabilities are $16.5M
Net Position is $99M
Unrestricted Net Position is negative
$93.8 million invested in capital assets, net of related debt $7.2 million legally restricted
$(2) million unrestricted
General Fund (page 19) – Budgetary Basis
Assets are $8.832M / Liabilities are $882k
Fund balance is $7.949M
Unassigned fund balance is $4.032M
3 164
General Fund Balance Comparison
$1,441,317 $1,624,767 $1,890,714 $1,826,280 $2,306,047
$271,660 $303,298
$451,448 $336,041
$1,533,785
$1,304,886
$2,416,988
$2,740,266
$3,985,626
$4,032,376
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2017-18 2018-19 2019-20 2020-21 2021-22
Audited balances fiscal years 2017/18 through 2021/22
Nonspendable Committed Assigned Unassigned
4 165
GOVERNMENT–WIDE
Statement of Activities (p 16)
5 2022 2021
General Revenue $ 7,216,085 $ 7,571,103
Program Revenue 9,432,092 9,874,136
Total Revenues 16,648,177 17,445,239
Expenses (17,271,873) (18,360,140)
Change in Net Position (623,926) (914,901)
Beginning Net Position 99,699,659 100,614,560
Prior period adjustment (39,597) -
Ending Net Position $99,036,366 $99,699,659
166
GENERAL FUND
Statement of Revenues, Expenditures, and
Changes in Fund Balance (p 18)
6 2022 2021
Revenues $ 7,437,463 $ 7,829,937
Expenditures (7,736,242) (7,492,514)
Revenue over (under)
expenditures
(298,779) 337,423
Net Transfers in (out) 2,044,679 783,762
Change in Fund Balance 1,745,900 1,121,185
Beginning Fund Balance 6,203,600 5,082,415
Ending Fund Balance $ 7,949,500 $ 6,203,600
167
Definitions
1. Governmental Activities Governmental activities are general government activities and are financed primarily through taxes,
intergovernmental revenues, and other
nonexchange revenues. ...
Common examples of governmental
activities include general administration, public
safety, education, streets and roads, and health and
sanitation.
7 168
Definitions
1. Program Revenues
2. Business-Type Activities
Program revenues are revenues that are directly
attributable to a specific functional activity. ...
Program revenues include fees collected from
those who benefit from the program, grants, and
other contributions required by the resource
provider to support a specific activity.
Business-type activities are financed in whole or
in part by fees charged to external users for goods
or services and are generally reported in
Enterprise Funds.
See FS pages 23-25. Water, Wastewater, Airport
8 169
Definitions
1. General Fund Expenditures The general fund is the primary fund from which the ongoing expenses of city
government are paid.
See FS page 21 for more detail.
This year the city spent 7.7 million in the
general fund. The largest expenditure was
public safety at 4.5 million (58.5%)
9 170
Definitions
1. Composition of fund balance See Fund Balance Definitions on page 34 Non-spendable
Restricted
Committed
Assigned
Unassigned
10171
City Council/Successor Agency
Agenda Item Summary Agenda Item:
Meeting Date:
G.2
April 12, 2023
Agenda Section:
New Business
Staff Contact:
David Kelley, City Manager
Agenda Item Title:
Resolution Revising the Current Stage 3 Water Shortage Emergency, Mandating Water Conservation Measures to a Stage 1 Water Shortage Emergency Requiring Voluntary Water Conservation and Terminating the Previously Enacted Water Shortage Surcharge enacted Pursuant to Cloverdale Municipal Code section 13.05.070
________________________________________________________________________________________ Recommended Council Action(s):
Adopt a Resolution Entitled, “A Resolution of the City Council of the City of Cloverdale Amending the current Stage 3 Water Shortage Emergency to a Stage 1 Water Shortage Emergency Requiring Voluntary Water Conservation pursuant to Chapter 13.05 “Conservation of Water Supply” of the Cloverdale Municipal Code and terminating the previously enacted Water Shortage Surcharge pursuant to Cloverdale Municipal Code section 13.05.070.”
________________________________________________________________________________________ Background:
California and Sonoma County experienced a historic drought that began in 2019. The Russian River Watershed was particularly impacted by drought conditions. In response to drought conditions, the State Water Resource Control Board took the following regulatory actions in 2021 to reduce water usage in the Upper and Lower Russian River Watershed.
1. The State Water Resources Control Board (“SWRCB”) on June 14, 2021, issued an order to reduce minimum instream flow requirements in the lower Russian River from 85 cubic feet per second (“cfs”) to 35 cfs. The Temporary Urgency Change Order (“TUCO”) also requires that Sonoma Water, and its water contractors, reduce total diversions from the Russian River by 20% compared to the same period of 2020 from July 1 through October 31. The Order, issued at the request of the Sonoma County Water Agency (“Sonoma Water”), enabled the agency to preserve storage in Lake Sonoma, which is the primary source of drinking water for more than 600,000 people in Sonoma and Marin counties.
2. The SWRCB on June 15, 2021 adopted an emergency regulation authorizing the Division of Water Rights to issue curtailment notices to senior water right holders in the upper Russian River watershed to safeguard the community’s drinking water availability later this year and next year. Per the regulation, curtailment notices may be issued once water levels fall below storage targets in Lake Mendocino, and when Sonoma Water is making Supplemental Storage Releases to satisfy Inbasin Uses, including diversions needed to meet minimum human health and safety needs, Reach Losses, and minimum flows required to protect fish and wildlife.
The City has recognized the impact of the drought on the region and City, has been monitoring the water supply, and adjusting its operations accordingly. In response to the historic drought, the City Council took a number of actions starting in April 2021 to address the impact of the drought on the City of Cloverdale. 172
City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. G.2
• On April 28, 2021, the City Council adopted a Resolution declaring a Stage 2 Water Shortage Emergency. The Stage 2 water shortage emergency implemented a mandatory water usage reduction of 25% over prior year water usage.
• In April 2021, the City Council approved an Agreement with the Sonoma Marin Water Savings Partnership. The City in collaboration with Sonoma Marin Water Saving Partnership has conducted the following outreach to inform the public of the dry year conditions, to request water use reductions, and to provide suggestions for saving water:
• Regional social media, radio, and print media ads
• Water-saving tips and information on the City website, newsletter, and social media pages • Water patrol and door tags to educate residents about water waste prevention • Leak reporting and water operations staff follow up
• Free Water Conservation kits provided at the Drought Drop By • On May 5, 2021, the City Council took additional steps to address the impact of the drought by adopting a Resolution “Proclaiming a Local Emergency Due to Drought Conditions within the City of Cloverdale.” The City Council’s proclamation of a local emergency was substantiated by the State’s emergency proclamation for Sonoma County and the ongoing risks presented by drought conditions.
In addition, the proclamation found that conditions of peril to the City of Cloverdale warranted and necessitated the proclamation of the existence of a local emergency. The proclamation of local emergency is deemed as continuing to exist until proclaimed otherwise by the City Council.
Concurrently, on May 5, 2021, the City Council adopted a Resolution suspending new or enlarged water system connections due to the ongoing drought.
• On May 26, 2021, the City Council held a Public Hearing on the 2020 Urban Water Management Plan.
Following the Public Hearing, the Council adopted a Resolution Adopting the 2020 Update of the Urban Water Management Plan for the City of Cloverdale, and a subsequent resolution adopting the Water Shortage Contingency Plan for the City of Cloverdale.
Urban Water Management Plan
The Urban Water Management Plan (“UWMP”) serves as a long-range planning document for the City’s water supply. The UWMP identifies water demands compared to water supply in a normal year, dry year, and multiple dry-year scenarios. Water demands are estimated based on past water use, projected growth, and anticipated water savings from Building Code updates. The Drought Risk Assessment (“DRA”), a new requirement for the 2020 UWMP, includes a description of water shortage conditions that may be experienced over the next five years, a determination of the reliability of the City’s water source under those conditions, a comparison of the supply to the projected demand, and considerations of possible factors that could impact this assessment. The City assessed possible supply shortage conditions over the next five years and determined that if there were a water supply reduction, it would trigger the City’s Water Shortage Contingency Plan (“WSCP”). By triggering the WSCP, the City could implement a variety of water savings and conservation efforts in order to reduce water demands.
Water Shortage Contingency Plan
The City of Cloverdale prepared the Water Shortage Contingency Plan (“WSCP”). The plan is a requirement of the California Urban Water Management Planning Act and other applicable laws and directs the suppliers’ long-term resource planning to ensure that adequate water supplies for current and future needs. To improve water conservation and water shortage planning, the WSCP will enable the City to prioritize 173
City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. G.2
mitigation actions when water shortage conditions occur, such as drought, earthquakes, fires, or other catastrophic events. State law specifies that a WSCP identifies six levels of water shortage emergency actions and provides enforcement mechanisms.
Municipal Code Updates and Ordinance Amendments
On August 12, 2021, the City Council adopted an Urgency Ordinance amending Chapter 13.05 of the Cloverdale Municipal Code. The Urgency Ordinance adopted by the City Council codified into the City’s Municipal Code the six levels of water emergency and corresponding water-saving targets, as defined in the table below, and made additional changes as described below. Per California Water Code section 10632(a)(3), as updated in 2020, a WSCP must include at least six stages and cover a possible reduction in supply of more than 50%. The stages are triggered depending on the severity and anticipated duration of the water supply shortage and include either voluntary or mandatory reductions. The triggers and actions for each stage are summarized in Table 8-1 of the UWMP.
Water Shortage Contingency Plan Levels Table
Stage Percent Shortage
Range
Shortage Response Action
1 <10% Stage 1, triggered by a reduction in water supply up to 10%, includes the encouragement of voluntary demand reduction measures and the elimination of wasteful water practices. Demand and water waste reduction measures include addressing water leaks, limiting washing of vehicles and paved surfaces, and disciplined irrigation. 2 10 – 20% Stage 2, triggered by a reduction in water supply up to 20%, makes mandatory all of the demand reduction measures and the elimination of wasteful water practices encouraged in Stage 1. A water shortage surcharge is also implemented.
3 20 – 30% Stage 3, triggered by a reduction in water supply up to 30%, prohibits washing of vehicles and limits irrigation to two days/week. It also sets some initial rationing for non-residential uses. The water shortage surcharge will also be increased.
4 30 – 40% Stage 4, triggered by a reduction in water supply up to 40%, limits irrigation to one day/week, and established rations for all water use categories. The water shortage surcharge will also be increased. 5 40 – 50% Stage 5, triggered by a reduction in water supply up to 50%, prohibits irrigation, and decreases the ration for all water use categories. The water shortage surcharge will also be increased.
6 >50% Stage 6, triggered by a reduction in water supply over 50%, decreases the ration for all water use categories, and increases the water.
Source: Table 8-1 of the 2020 Urban Water Management Plan State law specifies that provisions of the WSCP be supported by a Water Shortage Contingency Ordinance that identifies six levels of water shortage emergency actions and provides enforcement mechanisms. The 174
City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. G.2
Urgency Ordinance adopted by the City Council updated the City’s Municipal Code codifying the six levels of water emergency and corresponding water-saving targets as defined in the table above, incorporates by reference the WSCP, provides Council the option to declare voluntary or mandatory water restrictions at all levels, and clarifies enforcement mechanisms. Significant changes proposed include:
• Establishment of six levels of water shortage emergency at up to 10, 20, 30, 40, 50%, and greater than 50%;
• Inclusion of the WSCP as a reference for a menu of water conservation actions that may be implemented in response to declared emergencies; and
• Updates sections related to suspension of water connections.
Voluntary Drought Agreement
The State Water Board temporarily suspended the Curtailment Order on October 29, 2021 in anticipation of precipitation and continues to monitor available water in Lake Mendocino and the Russian River. On March 28, 2022, Governor Newsom signed Executive Order N-7-22 which extended the state of emergency due to drought into 2022. Subsequently, on May 10, 2022, the State Water Board adopted emergency curtailment regulations for the Russian River Watershed, which authorized issuance of curtailment orders to limit or cease water diversions and provide exemption to curtailment for participants of a voluntary water sharing agreement in the Russian River Watershed. The State Water Board issued new Curtailment Orders to all Russian River water right holders under the authority of the emergency curtailment regulations adopted on May 10, 2022, which would go into effect by order of priority of right. The Russian River Drought Response Steering Committee (“Steering Committee”) was formed as part of a regional effort to conserve available water supply during water shortage conditions. The Steering Committee has developed the Upper Russian River 2022 Voluntary Water Sharing Program and Upper Russian River 2022 Voluntary Water Sharing Program Agreement which allows participants to avoid curtailment by voluntarily conserving water. On June 8, 2002, The City Council adopted Resolution No. 056-2022 authorizing participation in the Upper Russian River 2022 Voluntary Water Sharing Program and authorizing the City Manager to Execute the Voluntary Water Sharing Agreement.
Executive Order N-7-22
On March 28, 2022, Governor Newsom issued Executive Order N-7-22, thereby ordering the State Water Board to consider adopting emergency regulations including a requirement that each urban water supplier that has submitted a water shortage contingency plan to the Department of Water Resources implement, at minimum, the shortage response actions adopted under section 10632 of the Water Code for a shortage level of up to twenty percent (Level 2). In response to Executive Order N-7-22, on May 24, 2022, the State Water Board adopted an emergency regulation via Resolution No. 2022-018, which added Section 996 to Title 23 of the California Code of Regulations (C.C.R.). Title 23 C.C.R. Section 996(c)(1) requires urban water suppliers such as the City to implement all demand reduction actions identified in the Water Shortage Contingency Plan for a shortage level of up to 20% (Level 2).
Executive Order N-5-23
On March 24, 2023, Governor Newsom issued Executive Order N-5-23, thereby ordering certain provisions of previously declared emergency proclamations and Executive Order N-7-22, suspended. The effect of this Executive Order is that the City is no longer mandated to adopt shortage response actions consistent with the Water Shortage Contingency Plan for a shortage level of up to twenty percent (Level 2). ________________________________________________________________________________________ Summary:
175
City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. G.2
Northern Sonoma County received significant precipitation in late December and early January that have increased local reservoirslevels significantly. The winter storms of late 2022- early 2023 increased the storage capacity of Lake Mendocino and Lake Sonoma. Lake Mendocino increased its amount of stored water from approximately 37,910 acre-feet at the start of the water year in October 2022 to over 95,609 acres feet on January 15, 2023. As January 15, 2023, Lake Sonoma’s water reservoir is over 224,000 acre-feet after a historic low in December 2022 of approximately 95,000 acre-feet. Based on the improved conditions to the water supply in Sonoma County, Governor Newsom issued Executive Order N-5-23, which suspended certain mandatory use reduction actions for Sonoma County jurisdictions. Due to the substantial increased pool elevations at Lakes Mendocino and Sonoma and the positive impact of the storm event on local drought conditions, consideration of a revision in the current drought Stage declaration from Stage 3 to a Stage 1 is warranted.
Section 13.05.050 of the Cloverdale Municipal Code establishes water uses restrictions that apply during all Water Shortage Emergency stages. The City Council’s current declaration of a Stage 3 Water Shortage Emergency (WSE) established a water use reduction goal of 25% for the City of Cloverdale. The 25% target associated with a Stage 3 WSE was consistent with the SWRCB’s call for water conservation on March 22, 2021, and consistent with Governor Newsom’s State of Emergency Proclamation of April 21, 2021.
Due to the significantly improved reservoir levels at Lake Mendocino and Lake Sonoma and the positive impact of the recent storm events on local drought conditions and Governor Newsom’s issuance of Executive Order N-5-23, consideration of a reduction in the water shortage emergency from a Stage 3 (25% reduction) emergency to a Stage 1 (voluntary conservation) is warranted. A Stage 1 Water Shortage Emergency is consistent with the Governor’s current executive order
In response to the drought, the City Council previously adopted a water shortage surcharge pursuant to Cloverdale Municipal Code section 3.05.070. As part of the reduction from a Stage 3 to a Stage 1 Water Shortage Emergency, it is appropriate to end this suspension.
City staff continues to closely monitor water supply conditions and will recommend appropriate adjustments to its water supply response if conditions change further. ________________________________________________________________________________________ Alternative Options:
1. Reject Resolution amending the current Stage 3 Water Shortage Emergency to a Stage 1 emergency; or
2. Provide alternative direction to Staff
________________________________________________________________________________________ Subcommittee Recommendation:
None
________________________________________________________________________________________ Budget/Financial Impact:
The City previously determined there is a financial impact to reductions in water sales in response to a water shortage. Water shortage mitigation actions impact revenues and require additional costs for water shortage response activities, especially in case of long-term drought conditions, such as increased staff costs for tracking, reporting, enforcement, and communications. To address these revenue impacts, the City commissioned a rate study by Hildebrand LLC that recommended implementation of a water rate surcharge to minimize revenue shortfalls during a shortage.
176
City Council/Successor Agency Agenda Item Summary
Meeting Date: April 12, 2023
Item No. G.2
Modification of the Stage 3 Water Shortage Emergency to a Stage 1 Water Emergency will eliminate the current water shortage rate surcharge for water consumption in accordance with the adopted Water and Sewer Rate Study (2021). The Modification of the Water Emergency to Stage 1 and the elimination of the rate surcharge will likely result in higher water use, which will offset the decreased revenue from the surcharge.
CEQA Compliance:
In accordance with CEQA Guidelines section 15378(a), the recommended Resolution to impose mandatory water conservation is not a “project” subject to CEQA.
________________________________________________________________________________________ Attachments:
1. Resolution Amending the Current Stage 3 Water Shortage Emergency to a Stage 1 Water Shortage Emergency
5330580.1
177
CITY OF CLOVERDALE
CITY COUNCIL
RESOLUTION NO. XXX-2023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVERDALE AMENDING THE CURRENT STAGE 3 WATER SHORTAGE EMERGENCY TO A STAGE 1 WATER SHORTAGE EMERGENCY REQUIRING VOLUNTARY WATER CONSERVATION PURSUANT TO CHAPTER 13.05 “CONSERVATION OF WATER SUPPLY” OF THE CLOVERDALE MUNICIPAL CODE AND TERMINATING THE PREVIOUSLY ENACTED WATER SHORTAGE SURCHARGE PURSUANT TO CLOVERDALE MUNICIPAL CODE SECTION 13.05.070 WHEREAS, the Governor of the State of California declared a local drought emergency in Sonoma County on April 21, 2021; and
WHEREAS, the County of Sonoma declared a local drought emergency on April 27, 2021; and WHEREAS, on June 15, 2021, the State Water Resources Control Board (State Water Board) adopted an emergency regulation authorizing the Division of Water Rights to issue curtailment notices to senior water right holders in the Russian River watershed to safeguard the community’s drinking water availability in the short term; and
WHEREAS, the emergency regulations authorize the State Water Board to issue curtailment order to senior water right holders in the Upper Russian River watershed if water storage levels in Lake Mendocino fall below 26,109 acre-feet before August 1, 2021 and Sonoma County Water Agency is making Supplemental Storage Releases to satisfy Inbasin Uses; and
WHEREAS, On August 2, 2021, the State Water Board issued the City a curtailment order prohibiting diversion of water under the City’s water rights to the Russian River; and WHEREAS, in response to these drought conditions, the City Council previously declared the existence of a State 4 water shortage emergency within the water service area of the City, including all water service areas served by the City outside the City limits; and
WHEREAS, the declaration was issued in accordance with Cloverdale Municipal Code (“CMC”) Chapter
13.05, “Conservation of Water Supply;” and
WHEREAS, the City Council additionally adopted a resolution to adopt and implement a water surcharge rate associated with certain declared water shortage emergency stages; and WHEREAS, on March 28, 2022, Governor Newsom signed Executive Order N-7-22 which extended the state of emergency due to drought into 2022 and ordering the State Water Board to consider adopting emergency regulations including a requirement that each urban water supplier that has submitted a water shortage contingency plan to the Department of Water Resources implement, at minimum, the shortage response actions adopted under section 10632 of the Water Code for a shortage level of up to twenty percent (Stage 2); and
WHEREAS, on May 24, 2022, the State Water Board through Resolution No. 2022-0018, adopted Title 23 California Code of Regulations (C.C.R.), Section 996, requiring the City to implement all demand reduction actions identified in the City’s Water Shortage Contingency Plan for a shortage level of up to twenty percent (Stage 2); and
178
City Council Resolution
Resolution No. XXX-2023
WHEREAS, in response to evolving drought conditions, on January 25, 2023, the City Council declared a reduction from Stage 4 to Stage 3 water shortage emergency within the water service area of the City, including all water service areas served by the City outside the City limits and rescinded the resolution suspending the connection to new or enlarged water service connections; and WHEREAS, Sonoma County recently received substantial rainfall from a series of atmospheric rivers such that Lake Sonoma and Lake Mendocino have fully recovered from historically low levels to the extent that each reservoir is full; and
WHEREAS, on March 24, 2023, Governor Newsom signed Executive Order N-5-23, rolling back most of the drought related water conservation restrictions and suspending certain provisions of Executive Order N-7- 22 applicable to Sonoma County jurisdictions; and
WHEREAS, Executive Order N-5-23 suspended the requirement for Sonoma County Jurisdictions to implement, at a minimum, the shortage response actions adopted under section 10632 of the Water Code for a shortage level of up to twenty percent (Level 2); and WHEREAS, the water supply outlook has vastly improved since 2021 such that reduction of the water shortage emergency Stage declaration from Stage 3 to a Stage 1 is warranted; and WHEREAS, as part of the reduction from a Stage 3 to a Stage 1 Water Shortage Emergency, it is appropriate to end the water shortage surcharge; and
WHEREAS, although the City is reducing the Water Shortage Emergency from Stage 3 to Stage 1, the drought remains ongoing; and
WHEREAS, the adverse environmental, economic, health, welfare, and social impacts of the drought pose an imminent threat of disaster and threaten to cause widespread potential harm to people, businesses, property, the environment, and recreation in the City of Cloverdale, which require the City to maintain ongoing actions to mitigate the effects of the drought and reduce water use; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cloverdale hereby amends the current Stage 3 Water Shortage Emergency to a Stage 1 Water Shortage Emergency, and requires voluntary water conservation for all City water users and its residents to protect the public health and safety of its residents and businesses.
BE IT FURTHER RESOLVED that the City Council of the City of Cloverdale hereby authorizes and directs the City Manager or the City Manager’s designee to institute a Stage 1 Water Shortage Emergency in accordance with Cloverdale Municipal Code Chapter 13.05 “Conservation of Water Supply.” BE IT FURTHER RESOLVED that the City Council of the City of Cloverdale hereby terminates the previously enacted water shortage surcharge in accordance with CMC 13.05.070 and directs staff to eliminate the surcharge starting with the April 2023 billing for water usage in the month of March. 179
City Council Resolution
Resolution No. XXX-2023
The foregoing Resolution was duly introduced and adopted by the City Council of the City of Cloverdale at its special meeting held on the 12th day of April 2023, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
APPROVED: ATTEST:
_______________________ ______________________
Todd Lands, Mayor Mike Maloney, City Clerk
5330511.1
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1 From: Melanie Bagby
Sent: Wednesday, April 12, 2023 10:00 AM
To: Michael Maloney
Subject: Council Report 3/9-4/12
3/9‐10 Attended USC Sol Price School of Public Policy EXED Forum: Advanced Training for Municipal Leaders, USC‐Los Angeles
3/13 Attended SCTA/RCPA board meeting, Santa Rosa. SCTA April Newsletter | RCPA April Newsletter 3/15 Attended SMART board meeting via Zoom due to illness, was elected Vice Chair of the Board 4/3 Attended FAP Subcommittee meeting, Cloverdale City Hall 4/6 Attended Sonoma Clean Power board meeting, Santa Rosa Melanie Bagby
Councilmember, City of Cloverdale
707‐893‐7170 • [email protected]
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April 5, 2023
Margaretta Veltri, Low-No Program Manager
FTA Office of Program Management
1200 New Jersey Avenue, S.E.
Washington, D.C. 20590
RE: City of Cloverdale Support for Sonoma County Transit Low-No Grant Dear Ms. Veltri:
The City of Cloverdale offers its support for Sonoma County Transit’s application for an FTA Low-No Grant that seeks assistance to fund the purchase of twenty-one 40’ battery electric buses and related charging equipment. The total request of the grant is $24,025,558 which includes 5% for workforce development.
The new buses will be deployed on Sonoma County Transit’s intercity routes which provide links to all cities and downtown Santa Rosa where transfers to local and regional bus and rail connections can be made. Funding for these buses will allow for timely replacement of existing buses and will significantly aid in transitioning Sonoma County Transit’s fleet to be fully zero-emission before 2035.
Battery-electric vehicles are more efficient and have lower operating and maintenance costs than the buses they replace. If awarded, these electric buses will enable our region to realize the significant performance, public health, and financial benefits that fleet electrification provides.
The City has established goals and policies related to reducing emissions. Electrifying our countywide bus fleet in an expeditious manner is a key component to meeting those goals.
Thank you for your consideration.
Sincerely,
Todd Lands,
Mayor
cc: Cloverdale City Council
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