Clovis City Council
March 7, 2022

March 07, 2022 - 1 - 3:51 PM A G E N D A • C I T Y C O U N C I L M E E T I N G

March 7, 2022 6:00 PM Council Chamber

In compliance with the Americans with Disabilities Act, if you need special assistance to access the City Council Chamber to participate at this meeting, please contact the City Clerk or General Services Director at (559) 324 -2060 (TTY – 711). Notificatio n 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the Council Chamber.

The Clovis City Council meetings are open to the public at the physical address listed above. There are numerous ways to participate in the City Council meetings: you are able to attend in person; you may submit written comments as described below; you may participate by calling in by phone (see “Verbal Comments” below); and you may view the meeting which is webcast and acces sed at www.cityofclovis.com/agendas.

Written Comments

 Members of the public are encouraged to submit written comments at:
www.cityofclovis.com/agendas at least two (2) hours before the meeting (4:00 p.m.). You will be prompted to provide:

 Council Meeting Date
 Item Number
 Name
 Email
 Comment

 Please submit a separate form for each item you are commenting on.

 A copy of your written comment will be provided to the City Council noting the item number.

If you wish to make a verbal comment, please see instructions below.

 Please be aware that any written comments received that do not specify a particular agenda item will be marked for the general public comment portion of the agenda.

 If a written comment is received after 4:00 p.m. on the day of the meeting, efforts will be made to provide the comment to the City Council during the meeting. However, staff cannot guarantee that written comments received after 4:00 p.m. will be provided to City Council during the meeting. All written comments received prior to the end of the meeting will be made part of the record of proceedings.

Council Chamber, 1033 Fifth Street, Clovis, CA 93612 (559) 324-2060 www.cityofclovis.com
1 March 07, 2022 - 2 - 3:51 PM Verbal Comments

 If you wish to speak to the Council on an item by telephone, you should contact the City Clerk at (559) 324-2060 no later than 4:00 p.m. the day of the meeting.

 You will be asked to provide your name, phone number, and your email. You will be emailed instructions to log into Webex to participate in the meeting. Staff recommends participants log into the Webex at 5:30 p.m. the day of the meeting to perform an audio check.

 All callers will be placed on mute, and at the appropriate time for your comment your microphone will be unmuted.

 In order for everyone to be heard, please limit your comments to 5 minutes or less, or 10 minutes per topic

Webex Participation

 Reasonable efforts will be made to allow written and verbal comment from a participant communicating with the host of the virtual meeting. To do so, a participant will need to chat with the host and request to make a written or verbal comment. The host w ill make reasonable efforts to make written and verbal comments available to the City Council. Due to the new untested format of these meetings, the City cannot guarantee that these written and verbal comments initiated via chat will occur. Participants desiring to make a verbal comment via chat will need to ensure that they accessed the meeting with audio transmission capabilities.

CALL TO ORDER

FLAG SALUTE - Councilmember Mouanoutoua

ROLL CALL

PRESENTATIONS/PROCLAMATIONS

1. Presentation of Proclamation Recognizing Garfield Elementary School Fourth Grade Students for successfully petitioning the district to bring strawberry milk to campus for a day.

2. Presentation of Proclamation Declaring March, 2022, as Women's History Month.

3. Presentation of Proclamation Declaring March 10, 2022, as Arbor Day.

PUBLIC COMMENTS - This is an opportunity for the members of the public to address the City Council on any matter within the City Council’s jurisdiction that is not listed on the Agenda. In order for everyone to be heard, please limit your comments to 5 minutes or le ss, or 10 minutes per topic. Anyone wishing to be placed on the Agenda for a specific topic should contact the City Manager’s office and submit correspondence at least 10 days before the desired date of appearance.

2 March 07, 2022 - 3 - 3:51 PM ORDINANCES AND RESOLUTIONS - With respect to the approval of resolutions and ordinances, the reading of the title shall be deemed a motion to waive a reading of the complete resolution or ordinance and unless there is a request by a Councilmember that the resolution or ordinance be read in ful l, further reading of the resolution or ordinance shall be deemed waived by unanimous consent of the Council.

CONSENT CALENDAR - Items considered routine in nature are to be placed upon the Consent Calendar. They will all be considered and voted upon in one vote as one item unless a Councilmember requests individual consideration. A Councilmember’s vote in favor of the Consent Calendar is considered and recorded as a separate affirmative vote in favor of each action listed. Motions in favor of adoption of the Consent Calendar are deemed to include a motion to waive the reading of any ordinance or resolution on the Consent Calendar. For adoption of ordinances, only those that have received a unanimous vote upon introduction are considered Consent items.

4. Administration - Approval - Minutes from the February 14, 2022, Council Meeting.

5. General Services - Approval – Approve and Authorize the City Manager to Sign Security Systems Installation and Service Contract at Landmark Square Buildings with Sonitrol of Fresno.

6. General Services – Approval – Res. 22-___, Amending the Executive Management Summary and Management Benefit Summary by Revising Holiday Pay for Fire Management, Updating Military Leave, Changing Extra Shift Coverage for Deputy Fire Chief and Battalion Chiefs; and Authorize the City Manager to Execute the Agreement.

7. Planning and Development Services - Approval – Res. 22-___, Final Map Tract 6284, located in the southeast area of North Sunnyside Avenue and Teague Avenue (Woodside 06N, LP).

8. Planning and Development Services - Approval – Res. 22 -___, Annexation of Proposed Tract 6284, located in the southeast area of North Sunnyside Avenue and Teague Avenue to the Landscape Maintenance District No. 1 of the City of Clovis (Woodside 06N, LP).

9. Planning and Development Services – Approval – Reduction of Performance and Payment Securities for Final Map for Tract 5789A, located on the northwest area Peach Avenue and West Stuart Avenue (Peach Avenue LP – Gary Mason).

10. Planning & Development Services – Approval – Authorize the City Manager to approve placement of a full time City Surveyor at Step 4 of the salary range.

11. Public Utilities - Approval – Res. 22-___, A Resolution Initiating Proceedings for the Annual Levy of Assessments for Landscape Maintenance District No. 1.

PUBLIC HEARINGS - A public hearing is an open consideration within a regular or special meeting of the City Council, for which special notice has been given and may be required. When a public hearing is continued, noticing of the adjourned item is required as per Government Code 54955.1.

12. Consider Introduction - Ord. 22-___, An Ordinance Adding Chapter 6.3.2, Title 6, of the Clovis Municipal Code, Pertaining to Manda tory Organics Waste Disposal Reduction.

Staff: Ivette Rodriguez, Solid Waste Manager
Recommendation: Approve
3 March 07, 2022 - 4 - 3:51 PM ADMINISTRATIVE ITEMS - Administrative Items are matters on the regular City Council Agenda other than Public Hearings.

13. Receive and File - 2022 Five-Year Financial Forecast for the City of Clovis through Fiscal Year 2026-27 and discuss options for budget preparation for 2022-23.

Staff: Jay Schengel, Finance Director
Recommendation: Receive and File

CITY MANAGER COMMENTS

COUNCIL COMMENTS

CLOSED SESSION - A “closed door” (not public) City Council meeting, allowed by State law, for consideration of pending legal matters and certain matters related to personnel and real estate transactions.

14. Government Code Section 54956.9(d)(2)

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant Exposure to Litigation
One potential case

ADJOURNMENT

MEETINGS AND KEY ISSUES

Regular City Council Meetings are held at 6:00 P.M. in the Council Chamber. The following are future meeting dates:

Mar. 14, 2022 (Mon.)
Mar. 21, 2022 (Mon.)
April 4, 2022 (Mon.) (Joint Meeting with Planning Commission) April 11, 2022 (Mon.)
April 18, 2022 (Mon.)

4 CITY of C L O V I S

PROCLAMATION
Recognizing Garfield Elementary School
Fourth Grade Students
WHEREAS, A group of Clovis fourth-graders celebrated civic engagement after successfully petitioning the district to bring strawberry milk to campusfor a day; and WHEREAS, Evan Swearingen, a fourth-grader at Garfield Elementary School, said he was inspired by an article his class read in Scholastic Magazine about a student in Missouri who convinced his school to put strawberry milk on the lunch menu; and WHEREAS, He recruited classmates Sabrina Jones and Chloe Hale, who wrote essays about strawberry milk, and Bree Ortiz, who created an illustration; and WHEREAS, After collecting 151 signatures, students took their cause to teacher Rita Twet, who encouraged them to take their case to Principal Jennifer Bump; and WHEREAS, Principal Bump called Robert Schram, director at Campus Catering.

The district reached out to Producers Dairy, and the company quickly agreed to make a special batch of strawberry milk on February Iin timefor Valentine's Day.

NOW, THEREFORE, BE IT PROCLAIMED, that the Clovis City Council, does hereby recognize and commend
Garfield Elementary School
Fourth Grade Students
for their initiative, passion, and drive in civic engagement to make a difference.

IN WITNESS THEREFORE, I hereunto set my hand and cause the official seal of the City of Clovis to be affixed the 7th day of March, 2022. f Mayor
5 AGENDA ITEM NO. 1.

C I T Y ' / C L O V I S

PROCLAMATION
Declaring March 2022 as
Women's History Month
WHEREAS, Each year, Women's History Month offers an important opportunity for us to shine a light on the extraordinary legacy of trailblazing American women and girls who have built, shaped, and improved upon our Nation and our Clevis community; and WHEREAS, Throughout American history, women and girls have made vital contributions, often in the face of discrimination and undue hardship. Courageous women marchedfor and won the right to vote, campaigned against injustice, shattered countless barriers, and expanded the possibilities of American life; and
WHEREAS, Women have played and continue to play critical economic, cultural, and social role in every sphere of the life of the Nation by constituting a significant portion of the labor force working inside and outside ofthe home; and
WHEREAS, In our current moment ofcrisis, women continue to lead in our community. From public health workers and officials to the countless heroines on the frontlines like our Clovis police officers, ftreftghters, and City staff members, women are working around the clock to navigate through new regulations to defeat COVID-19 and make our community a better and safer place to live. Women also make up the majority of America's essential workers, including educators and childcare providers, grocery store workers, farmworkers, and others who are keeping ourfamilies, our communities, and our country afloat; and WHEREAS, Women of every race, class, and ethnic background have made historic contributions to the growth and strength of our Nation in countless recorded and unrecorded ways; and
WHEREAS, This month, we honor the countless accomplished and visionary women who have helped build our country and our community, including those whose contributions have not been adequately recognized and celebrated. We celebrate the victories they've won and we continue our work to build a Nation and community of endless possibilities for all of its women and girls.

NOW, THEREFORE, BE IT PROCLAIMED, that the Clovis City Council, does hereby declare the month of March as
Women's History Month
IN WITNESS THEREFORE, I hereunto set my hand and cause the official seal of the City of Clovis to be affixed the 7th day of March, 2022.
6 AGENDA ITEM NO. 2.

C I T Y ' / C L O V I S

PROCLAMATION
Declaring March 10, 2022 as Arbor Day
WHEREAS, In 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day he set aside for the planting oftrees; and WHEREAS, The Special Day, called Arbor Day, was first observed with the planting ofmore than one million trees in the State of Nebraska; and WHEREAS, Arbor Day is now observed throughout our nation and the world; and
WHEREAS, Trees provide valuable resources such as reducing erosion, lowering heating and cooling costs, moderating air temperatures, cleaning our atmosphere by sequestering carbon dioxide and producing oxygen, and by providing habitatfor wildlife; and
WHEREAS, Trees are a renewable resource further providing paper products, lumberfor homes, fuel for heating, and materialfor many other products; and WHEREAS, Trees in our community increase property values, enhance economic activity, and beautify our City.

NOW, THEREFORE, BE IT RESOLVED, that the Clovis City Council, on behalfofthe citizens of Clovis, declare March 10, 2022, as Arbor Day
IN WITNESS THEREFORE, 1 hereunto set my hand and cause the official seal ofthe City of Clovis to be affixed the 7''' day ofMarch, 2022. f Mayor
7 AGENDA ITEM NO. 3.

PRELIMINARY - SUBJECT TO APPROVAL

CLOVIS CITY COUNCIL MEETING

February 14, 2022 6:00 P.M. Council Chamber

Meeting called to order by Mayor Flores at 6:01 p.m.

Flag Salute led by Councilmember Bessinger

Roll Call: Present: Councilmembers Ashbeck, Bessinger, Mouanoutoua, Whalen Mayor Flores

PUBLIC COMMENTS – 6:03

Cheryl Medrano, resident, shared an update on the status of her complaint to the City regarding her home that was impacted by the water main break on Sunnyside Avenue just north of Third Street.

CONSENT CALENDAR – 6:07

Motion by Councilmember Ashbeck, seconded by Councilmember Bessinger, that the items on the Consent Calendar be approved. Motion carried by unaminous vote.

1. Administration - Approved - Minutes from the February 7, 2022 Council Meeting.

2. Administration - Received and Filed – Economic Development Corporation Serving Fresno County Quarterly Report, October-December 2021.

3. Administration – Approved – Street Closure Requests for Special Events in Dry Creek Industrial Park.

4. Administration - Approved – Request from Business Organization of Old Town for Temporary Street Closure of Various Old Town Streets to Hold the Annual Glorious Junk Days Antique and Collectible Show on September 18, 2022.

5. General Services - Approved - Res. 22 -14, Authorizing Amendments to the City’s Classification and Compensation Plans to Adopt the Landfill Supervisor Classification and Salary Range of $7,875 to $9,572 per month.

6. Public Utilities – Approved – Bid Award for SPR 1987 -048A, 79 N. Sunnyside Avenue Site Improvements, and Authorize the City Manager to Execute the Contract on Behalf of the City.

7. Public Utilities – Approved – Res. 22-15, Approving and Authorizing Staff to Proceed with Submitting a Notice of Intent to CalRecycle to Comply with SB 1383 Regulations via SB 619.1.

ADMINISTRATIVE ITEMS – 6:09

6:09 – ITEM 8 - APPROVED – MASTER CLOVIS TRA ILS AND RIGHT -OF-WAY USE

AGREEMENT AND THE ME MORANDUM OF INTERPRE TATION BETWEEN THE C ITY

OF CLOVIS AND FRESNO IRRIGATION DISTRICT

8 AGENDA ITEM NO. 4.

PRELIMINARY - SUBJECT TO APPROVAL

Tom Krazan, Fresno County Resident, shared his concerns regarding the trailway if the canal bank behind his property is opened for the public and possible liability issues. He is also concerned about littering and homeless encampments on the canal banks.

Yvette Sanchez, Fresno County Resident, shared her concerns regarding a high volume of traffic on the canal banks should it be opened up for public use as trailway.

Carrie Bricks, Fresno County Resident, shared her concerns regarding a lack of privacy if the canal bank was opened for public use as a trailway.

Adam Clays, FID Representative, thanked the City of Clovis for establishing a city -wide agreement with FID.

Mark Keppler, addressed residents’ concerns regarding liability issues and potential options for trailway agreement as well as funding options.

Motion for approval by Councilmember Whalen, seconded by Councilmember Mouanoutoua. Motion carried by unanimous vote.

7:52 – ITEM 9 - APPROVED – CONSIDER AN ASSES SMENT INCREASE ELECT ION IN LANDSCAPE MAINTENANCE DISTRICT NO. 1.

Motion for approval by Councilmember Ashbeck, seconded by Councilmember Bessinger.

Motion carried by unanimous vote.

CITY MANAGER COMMENTS – 8:09

8:09 – ITEM 10 - COVID-19 Update.

COUNCIL COMMENTS – 8:12

CLOSED SESSION – 8:20

ITEM 11. GOVERNMENT CODE SECTION 54956.9(D)(2) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION SIGNIFICANT EXPOSURE TO

LITIGATION THREE POTENTIAL CASES

9 AGENDA ITEM NO. 4.

PRELIMINARY - SUBJECT TO APPROVAL

ITEM 12. GOVERNMENT CODE SECTION 54956.9(D)(4) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION DECIDING WHETHER TO INITIATE

LITIGATION ONE POTENTIAL CASE

Mayor Flores adjourned the meeting of the Council to March 7, 2022

Meeting adjourned: 9:48 p.m.

______________________________ ________________________________ Mayor City Clerk
10 AGENDA ITEM NO. 4.

TO: Mayor and City Council
FROM: General Services Department
DATE: March 7, 2022
SUBJECT: General Services - Approval – Approve and Authorize the City Manager to Sign Security Systems Installation and Service Contract at Landmark Square Buildings with Sonitrol of Fresno.

ATTACHMENTS: 1. Security Systems Contract

CONFLICT OF INTEREST
None

RECOMMENDATION
Approve and authorize the City Manager to sign a contract with Sonitrol of Fresno for the installation of access control, burglar alarm and fire monitoring systems at the Landmark Square senior center and transit buildings for $81,174.92, and systems monitoring services for a monthly cost of $607.00.

EXECUTIVE SUMMARY
Staff is recommending entering into a contract with Sonitrol of Fresno to provide access control, burglar alarm and fire monitoring system at the new City buildings at Landmark Square. Sonitrol security systems are currently installed and utilized at 95 % of all City facilities , with continued desire to st andardize the security systems city -wide for compatibility, system integrity, and to maintain system security. Standardization allows employees with authorization to enter various City buildings or fuel City vehicles using the same keycard. Sonitrol of Fresno is the exclusive provider of Sonitrol security systems within Fresno County, therefore, no other vendors, besides Sonitrol of Fresno can provide the systems and services the City requires.

Under the California Uniform Public Construction Cost Accounting Act (CUPCCAA), the city can informally bid projects that cost up to $200,000. Because Sonitrol of Fresno is the exclusive provider of Sonitrol security systems within Fresno County , Staff notified Sonitrol of the bid opportunity for this project in accordance with applicable provisions of the Clovis Municipal Code (CMC). Contracting with Sonitrol of Fresno for this work is authorized pursuant to CMC Chapter

2.9. 11
AGENDA ITEM NO. 5.

BACKGROUND
Landmark Square consists of two new C ity facilities currently under construction: the senior center and transit hub . Intrusion, fire alarm monitoring and access control systems were excluded from the general contract due to the City wanting to standardize the security system city-wide. The City began installing Sonitrol access control and alarm systems in 2003 and has progressively installed security systems throughout City facilities as the need arose. Sonitrol equipment is currently installed and utilized at 95% of all City facilities.

Procurement
As stated, Sonitrol security systems is the only suitable system for function and compatibility based on the City’s existing systems and promotes uniformity of the system city-wide, and Sonitrol of Fresno is the exclusive provider of Sonitrol security systems within Fresno County.

The City has adopted the CUPCCAA accounting procedures (CMC Chapter 2.9) which permit informal bidding for project s that cost up to $200,000. As authorized by CMC Section

2.9.03(b)(3)(B), when a product or service is proprietary in nature and can be obtained only from a certain vendor or contractor, notice of a bid opportunity can be sent exclusively to such vendor or contractor. Staff notified Sonitrol of Fresno o f this project in accordance CMC Section

2.9.03(b)(3)(B), and Sonitrol of Fresno provided the proposal for installation of access control, burglar alarm and fire monitoring systems at the Landmark Square senior center and transit buildings for $81,174.92, and systems monitoring services for a monthly cost of $607.00. Staff has reviewed the proposal and finds it is reasonable and meets the City’s needs for this project.

Contracting with Sonitrol is in the City’s best interest for the following reasons:

 Sonitrol equipment is currently being utilized at 95% of all City facilities and would standardize security systems city-wide to match existing City access control security, burglar alarm and fire monitoring systems.
 Standardizing to Sonitrol systems will allow City employees to use a single access card to access all other City buildings equipped with Sonitrol access control. o Sonitrol access cards are compatible and programmable to be used with Public Safety’s internal access control system.
o The Fleet Division is using Sonitrol issued access cards for fuel -dispensary purposes at the City’s fuel island.
o An employee can use a single card to access the fuel islands and all facilities deemed appropriate by their Director/Manager.
 Sonitrol of Fresno’s call center is located in Fresno , their technicians are employed locally, and Sonitrol of Fresno has always been very responsive b y providing excellent service for the past nineteen years.
 The City has built a rapport over the years in which our technicians can communicate directly with Sonitrol of Fresno technicians when we encounter system issues or are in need of troubleshooting assistance.

Sonitrol of Fresno is the exclusive provider of Sonitrol securit y systems within Fresno County; no other vendors besides Sonitrol of Fresno can provide the systems a nd services the City requires.

12 AGENDA ITEM NO. 5.

FISCAL IMPACT
Sonitrol of Fresno’s proposed project price for access control, burglar alarm and fire monitoring at the Landmark Square & Transit Hub is $81,174.92. The City’s projected needs for these security services are funded through a transit Prop 1B FY14/15 grant, or Landmark Square construction budget; therefore, there will be no additional fiscal impact to the City’s budget.

REASON FOR RECOMMENDATION
The City’s long-term strategy is to standardize security needs with a single vendor. Sonitrol of Fresno currently services 95% of all city buildings with fire sprinkler monitoring, burglar alarm, access control, and temperature control monitoring.

ACTIONS FOLLOWING APPROVAL
Staff will submit contract documents for City Manager approval to initiate implementation of security systems at Landmark Square buildings for the purchase price of $ 81,174.92 and systems monitoring services for a monthly cost of $ 607.00. Once fully executed, the general contractor (AMG) will coordinate with Sonitrol of Fresno to schedule installation and contractor implementation.

Prepared by: Stephen Frankian, Facilities Maintenance and Purchasing Manager

Reviewed by: City Manager __AH___

13 AGENDA ITEM NO. 5.

CITY OF CLOVIS

SMALL PROJECT CONSTRUCTION AGREEMENT

This Construction Agreement ("Agreement") is entered into between the City of Clovis, a California general law city ("City") and Sonitrol of Fresno ("Contractor") with respect to the following recitals, which are a substantive part of this Agreement. This Agreement shall be effective on March 15th, 2022 ("Effective Date"), following approval by the City Council.

RECITALS

A. City desires to obtain construction services (“Work”) for construction of the public work “Landmark Square Burglar/Access Control Project ” (“Project”) more fully described in Exhibit B, and, if applicable, as further set forth in the proposal from Contractor at tached as Exhibit C, which are incorporated herein by reference.

B. Contractor is engaged in the business of public works construction and hereby warrants and represents that Contractor is qualified, licensed, and professionally capable of performing the Work on the Project.

C. Contractor submitted a proposal for the Project, included herein as Exhibit C, as well as all required forms, bonds, certificates, and other documents (“Contractor’s Proposal”), that was approved by City for award of contract for the Project and is incorporated herein by reference.

D. City desires to award Contractor the contract for the Work , and Contractor desires to perform the Work on the Project, on the terms and conditions as set forth in this Agreement.

NOW, THEREFORE, in consideration of the promises and mutual agreements herein, City and Contractor agree as follows:

AGREEMENT

1. Scope of Work. Contractor shall furnish all labor, equipment and materials, including tools, implements, and appliances required, and to perform all the Work in a good and workmanlike manner, free from any and all liens and claims from mechanics, material suppliers, subcontractors, artisans, machinists, teamsters, freight carriers, and laborers required for:

Landmark Square Burglar/Access Control Project

The Work shall be in strict compliance with the plans, drawings, specifications, and conditions for the Project and other documents relating thereto (“Project Doc uments”), which are incorporated herein by reference . Exhibit B and Exhibit C shall be part of the Project Documents, which shall be part of this Agreement. If the terms and requirements of this Agreement and/or Exhibit B conflict with Contractor’s Proposal, including Exhibit C , this Agreement and Exhibit B shall control. No contractual terms and/or conditions found in Contractor’s Proposal, including Exhibit C , shall purport to waive, disclaim, or limit Contractor’s liability, indemnification obligations, warranties, damages for breach or delay, or any security, bonding, or insurance requirements, and any such provisions shall have no force or effect with respect to this Agreement and the Work performed by Contractor.

ATTACHMENT 1
14 AGENDA ITEM NO. 5.

2. Changes in the Work. Changes in this Agreement or in the Work to be done under this Agreement shall be made in writing. City reserves the right to change the Work by making such alterations, deviations, additions to, or deletions from the plans and specifications, as may be deemed by City to be necessary or advisable for the proper completion or construction of the Work, and the City reserves the right to require Contractor to perform such work. There shall be no change whatsoever in the drawings, specifications, o r in the Work without an executed, written order by City for the change in the Work. City shall not be liable for the cost of any extra work or any substitutions, changes, additions, omissions, or deviations from the Project Documents unless the same shall have been authorized by and the cost thereof approved in writing . No extension of time for performance of the Work shall be allowed hereunder unless such extension is made at the time changes in the Work are ordered, and such time duly adjusted in writing.

3. Commencement of Work; Schedule; Completion of Work. Contractor shall commence the Work upon City's issuance of a written "Notice to Proceed" and shall continue with the Work until Contractor has satisfactorily performed and completed the Work as determined by City, or until such time as the Agreement is terminated pursuant to Section 23 herein, whichever is earlier. Contractor shall perform the Work according to the schedule set forth in the Project Documents, if applicable. If no schedule is set forth in the Project Documents, City and Contractor shall mutually agree on a schedule for performance of the Work and completion of stages or milestones, if applicable. The schedule shall be subject to modification based on the City’s operational need s. City will notify Contractor in advance of any modification to the schedule and issue a written notice pursuant to Section 2, if applicable . The Project shall be completed not later than 30 days after the date the Notice to Proceed is issued (“Completion Date”).

4. Payment for Work. City shall pay Contractor a sum not to exceed Eighty-one Thousand, One Hundred Seventy-Four Dollars and Ninety-two Cents ($81,174.92) for the Work satisfactorily performed pursuant to this Agreement , inclusive of all labor, equipment, materials, costs and expenses, taxes, and overhead. Contractor shall submit monthly invoices to City containing detailed information regarding the progress of the Work and City shall tender payment to Contractor within thirty (30) days after rec eipt of invoice , subject to Section 5, below.

5. Retention and Withholding Payments. Progress payments shall be made in accordance with Public Contract Code sections 7201, 9203, and 20104.50. City shall retain five percent (5%) of any approved progress payment, except it may retain more if it makes special findings pursuant to Public Contract Code section 7201. City may decide to withhold a progress or retention payment in whole, or in part, to the extent reasonably necessary to protect City. In addition, City may withhold payment, in whole, or in part, to such extent as may be necessary to protect City from loss because of any acts or omissions by Contractor, including any rights to withhold mentioned in the Project Documents or based on stop payment notices. City shall pay the retainage pursuant to Public Contract Code section 7107.

6. Independent Contractor Status . Contractor and its subcontractors shall perform the Work as independent contractors and not as officers, employees, agents or volunteers of City.

Contractor is engaged in an independently established trade, occupation, or business to perform the services required by this Agreement and is hereby retained to perform work that is outside the usual course of City’s business. Contractor is free from the control and direction of City in connection with the manner of performance of the work. Nothing contained in this Agreement shall be deemed to create any contractual relationship between Ci ty and 15 AGENDA ITEM NO. 5.

Contractor’s employees or subcontractors, nor shall anything contained in this Agreement be deemed to give any third party, including but not limited to Contractor’s employees or subcontractors, any claim or right of action against City.

7. Contractor Representations; Standard of Care ; Compliance with Law . Contractor represents that Contractor and any subcontractors utilized by Contractor are and will be qualified in the field for which the Work is being provided under this Agreement and Contractor and any subcontractors are now, and will be throughout their performance of the Work under this Agreement, properly licensed, certified, secured/ bonded, trained, and/or otherwise qualified and authorized to perform the Work required and contemplated by this Agreement, as may be required by law. Contractor and its subcontractors shall utilize the standard of care and skill customarily exercised by members of their profession, shall use reasonable diligence and best judgment while performing the Work, and shall comply with all applicable laws , regulations, and industry standards. Contractor shall comply with all Labor Code requirements for public works projects applicable to Contractor’s work under this Agreement.

8. Licensing. Contractor shall maintain the following license throughout the performance of this Agreement: Class C-7. Contractor shall also obtain and maintain a City of Clovis Business Tax Certificate prior to commencing performance of the Work.

9. Payment Bond. When required by applicable law, including Civil Code section 9550, prior to commencing any portion of the Work, the Contractor shall apply for and furnish City a payment bond for its portion of the Work which shall cover 100% payment for all obligations arising under the Project Documents and guaranteeing the payment in full of all claims for labor performed and materials supplied for the Work. Only bonds executed by admitted Surety insurers as defined in Code of Civil Procedure section 995.120 shall be accepted. The surety insurers must, unless otherwise agreed to by City in writing, at the time of issuance of the bonds, have a rating not lower than “A -” as rated by A.M. Best Company, Inc. or other independent rating companies. City reserves the right to approve or reject the surety insurers selected by Contractor and to require Contractor to obtain bonds from surety insurers satisfactory to City.

10. Performance Bond. Prior to commencing any portion of the Work, the Contractor shall apply for and furnish City a performance bond for its portion of the Work which shall cover 100% faithful performance of all obligations arising under the Project Documents. Only bonds executed by admitted Surety insurers as defined in Code of Civil Procedure section 995.120 shall be accepted. The surety insurers must, unless otherwise agreed to by City in writing, at the time of issuance of the bonds, have a rating not lower than “A -” as rated by A.M. Best Company, Inc. or other independent rating companies. City reserves the right to approve or reject the surety insurers selected by Contractor and to require Contractor to obtain bonds from surety insurers satisfactory to City.

11. Performance Requirements . Notwithstanding, and in addition to the provisions of, Section 23 of this Agreement, if any Work performed hereunder is not in conformity with the requirements of this Agreement and other pertinent documents, City shall have the right to require Contractor to correct the Work in conformity with the requirements of this Agreement at no additional increase in the payment to Contractor. Contractor shall promptly correct the work rejected by City for failing to conform to the requirements of the Project Documents.

Remedy for non-compliance or non-performance shall commence within 24 hours of notice.

City shall also have the right to require Contractor to take all necessary steps to ensure future performance of the Work in conformity with the requirements of this Agreement. In the event 16 AGENDA ITEM NO. 5.

Contractor fails to correct the Work or fails to take necessary steps to ensure future performance of the Work in conformity with the requirements of this Agreement, City shall have the right to immediately terminate this Agreement for default.

12. Delay Damages. Time is of the essence with respect to this Agreement and the Work performed by Contractor. Contractor’s failure to timely complete the Work under this Agreement shall result in the assessment of delay damages at the rate of $100 per day for each calendar day the Project remains unfinished beyond the Completion Date or Work remains incomplete beyond any phase or milestone identified in the schedule as being subject to Delay Damages. The actual occurrence of damages and the actual amount of the damages which City would suffer for such delayed completion of the Project are impracticable and extremely difficult to calculate. Damages which City would suffer in the event of such delay include, but are not limited to, loss of the use of the other contractor’s work and the Project, disruption of activities, costs of administration and supervision, and the incalculable inconvenience and loss suffered by the public. Accordingly, the parties agree that the amount set forth herein shall be presumed to be the amount of damages which City shall directly incur for each calendar day that completion of the Project is delayed.

13. Identity of Subcontractor s. To the extent the following is not already included in Contractor’s Proposal and subject to the requirements of Public Contract Code section 4107, if applicable, Contractor shall, before commencing any work under this Agreement, provide to City in writing: (a) the identity of all subcontractors Contractor intends to utilize in Contractor’s performance of the Work on the Project; and (b) a detailed description of the full scope of work to be provided by such subcontractors. Contractor shall only employ s ubcontractors pre - approved by City and in no event shall Contractor replace an approved subcontractor without the advance written permission of City, with the understanding that City's permission will not be unreasonably withheld. Notwithstanding any other provisions in this Agreement, Contractor shall be liable to City for the performance of Contractor’s subcontractors.

14. Subcontractor Provisions. Contractor shall include in its written agreements with its subcontractors, if any, provisions which: (a) impose upon the subcontractors the obligation to provide to City the same insurance and indemnity obligations that Contractor owes to City; (b) make clear that City intends to rely upon the reports, opinions, conclusions and other work product prepared and performed by subcontractors for Contractor; (c) entitle City to impose upon subcontractors the assignment rights found elsewhere in this Agreement; and (d) require the payment of prevailing wages in accordance with State and Federal law, if applicable.

15. Prevailing Wages; Apprenticeship. The Project is a public work, the Work shall be performed as a public work and pursuant to the provisions of Section 1770 et seq. of the Labor Code of the State of California, which are hereby incorporated by reference and made a part hereof. Contractor shall be responsible for the payment of prevailing wages in accordance with State and Federal law. Contractor shall further be responsible for ensuring any subcontractors comply with any requirements for the payment of prevailing wages in accordance with State and Federal law, if applicable. The Contractor and any subcontractor under the Contractor as a penalty to the Owner shall forfeit not more than Two Hundred Dollars ($200.00) for each calendar day or portion thereof for each worker paid less than the stipulated prevailing rates for such work or craft in which such worker is employed. The di fference between such stipulated prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the stipulated prevailing wage rate shall be paid to each worker by the Contractor. Contractor shall comply with all requirements and obligations relating to apprentices, apprenticeships, and/or apprenticeable crafts or trades, 17 AGENDA ITEM NO. 5.
as applicable, including but not limited to Labor Code section 1775.5. Contractor shall register with the Department of Industrial Relations, if required.

16. Power to Act on Behalf of City . Contractor is not acting as an agent of City and shall not have any right, power, or authority to create any obligation, express or implied, or make representations on behalf of City except as may be expressly authorized in advance in writing from time to time by City and then only to the extent of such authorization.

17. Record Keeping; Reports. Contractor shall keep complete records showing the Work performed. Contractor shall be responsible and shall require its subcontractors to keep similar records. City shall be given reasonable access to the records of Contractor and its subcontractors for inspection and audit purposes. Contractor shall provide City with a working draft of all plans, drawings, specifications, and/or reports upon reasonable request by City and of all final plans, drawings, specifications , and/or reports prepared by Contractor under this Agreement.

18. Ownership and Inspection of Documents. All data, t ests, reports , documents, conclusions, opinions, recommendations and other work product generated by or produced for Contractor or its subcontractors in connection with the Work, regardless of the medium, including physical drawings and materials recorded on computer discs or other electronic devices ("Work Product"), shall be and remain the property of City. City shall have the right to use, copy, modify, and reuse the Work Product as it sees fit. Upon City's request. Contractor shall make available for in spection and copying all such Work Product and all Work product shall be turned over to City promptly at City's request or upon termination of this Agreement, whichever occurs first. Contractor shall not release any Work Product to third parties without prior written approval of the City Manager. This obligation shall survive termination of this Agreement and shall survive for four (4) years from the date of expiration or termination of this Agreement.

19. Confidentiality. All Work Product prepared and per formed by and on behalf of Contractor in connection with the Work performed pursuant to this Agreement shall be kept confidential and shall be disclosed only to City, unless otherwise provided by law or expressly authorized by City. Contractor shall not disclose or permit the disclosure of any confidential information acquired during performance of the Work, except to its agents, employees and subcontractors who need such confidential information in order to properly perform their duties relative to this Agreement. Contractor shall also require its subcontractors to be bound to these confidentiality provisions.

20. City Name and Logo . Contractor shall not use City's name or insignia, photographs relating to the City projects or work for which Contractor’s services are rendered, or any publicity pertaining to the Contractor’s Work under this Agreement in any magazine, trade paper, newspaper, television or radio production , internet website, social media, or other similar medium without the prior written consent of City.

21. Conflicts of Interest . Contractor warrants that neither Contractor nor any of its employees have an interest, present or contemplated, in the Work or the Project which would affect Contractor’s or its employees’ performance of the Work and the completion of the Project. Contractor further warrants that neither Contractor nor any of its employees have real property, business interests or income that will be affected by the Work. Contractor covenants that no person having any such interest, whether an employee or subcontractor shall perform the Work under this Agreement. During the performance of the Work, Contractor shall not 18 AGENDA ITEM NO. 5.
employ or retain the services of any person who is employed by the City or a member of any City Board or Commission.

22. Non-liability of Officers and Employees . No officer or employee of City shall be personally liable to Contractor, or any successors in interest, in the event of a default or breach by City for any amount which may become due Contractor or its successor, or for any breach of any obligation under the terms of this Agreement.

23. Termination of Agreement . This Agreement shall terminate upon completion of the Work, or earlier pursuant to the following.

a. Termination by City: For Convenience. City may, at any time, terminate th is Agreement for convenience and without cause. Upon receipt of written notice from City of such termination, the Contractor shall (1) cease operations as directed by the City in the notice; (2) take actions necessary, or that the City may direct, for the protection and preservation of the work; and (3) except for work directed to be performed prior to the effective date of termination stated in the notice, terminate all existing subcontracts and purchase or ders and enter into no further subcontracts and purchase orders.

b. Termination by City or Contractor: For Cause. Either party may terminate this Agreement upon ten (10) days prior written notice to the other party of a material breach, and a failure t o cure within that time period or commence reasonable steps to cure the breach .

Contractor’s failure to perform the Work as required by this Agreement or failure to correct non- conforming Work shall constitute a material breach of this Agreement.

c. Compensation to Contractor Upon Termination . Contractor shall be paid compensation for Work satisfactorily performed prior to notice of termination. As to any phase partially performed but for which the applicable portion of Contractor’s compensation has not become due, Contractor shall be paid the reasonable value of the Work performed. However, in no event shall such payment when added to any other payment due un der the applicable part of the Work exceed the total compensation of such part as specified in Section 4 herein.

In the event of termination due to Contractor’s failure to perform in accordance with the terms of this Agreement through no fault of City, City may withhold an amount that would otherwise be payable as an offset to City's damages caused by such failure.

d. Effect of Termination. Upon termination of this Agreement, Contractor shall: (i) promptly discontinue all Work affected, unless the notice directs otherwise; and (ii) deliver or otherwise make available to the City, without additional compensation, all Work Product and/or deliverables accumulated by the Contractor in performing this Agreement, whether completed or in process. Contractor may not refuse to provide such Work Product for any reason whatsoever.

24. Insurance. Contractor shall satisfy the insurance requirements set forth in Exhibit A.

25. Indemnity and Defense. Contractor hereby agrees to indemnify, defend and hold the City, its officials, officers, employees, agents, and volunteers harmless from and against all claims, demands, causes of action, actions, damages, losses, expenses, and other liabilities, (including without limitation reasonable attorney fees and costs of litigation) of every nature arising out of or in connection with the alleged or actual acts, errors, omissions or negligence of Contractor or its subcontractors relating to the performance of Work described herein to the fullest extent permitted by law, unless the injuries or damages are the result of City's sole or 19 AGENDA ITEM NO. 5.
active negligence or willful misconduct. Contractor and City agree that said indemnity and defense obligations shall survive the expiration or termination of this Agreement for any items specified herein that arose or occurred during the term of this Agreement.

26. Warranty. Contractor warrants that material and equipment furnished for the Project will be of good quality and new unless otherwise r equired or permitted by the Project Documents, that the Work will be free from defects not inherent in the quality required or permitted, and that the Work will conform with the requirements of the Project Documents.

Work not conforming to these requirements, including substitutions not properly approved and authorized, may be considered defective. Such warranty shall extend for a period of not less than one (1) year from completion of the Project. If within the applicable warranty period any of the Work does not comply with the Project Documents, the Contractor shall correct it after receipt of City’s written notice to do so. Contractor shall correct the Work promptly, and passage of the applicable warranty period shall not release Contractor from its oblig ation to correct the Work if Owner provided the written notice within the applicable warranty period.

27. Taxes. Contractor agrees to pay all taxes, licenses, and fees levied or assessed by any governmental agency on Contractor incident to the performan ce of Work under this Agreement, and unemployment and workers’ compensation insurance, social security, or any other taxes upon the wages of Contractor, its employees, agents, and representatives.

Contractor agrees to obtain and renew an annual business tax certificate from City and pay the applicable annual business registration tax to City during the term of this Agreement.

28. Assignment. Neither this Agreement nor any duties or obligations hereunder shall be assignable by Contractor without the prio r written consent of City. In the event of an assignment to which City has consented, the assignee shall agree in writing to personally assume and perform the covenants, obligations, and agreements herein contained. In addition, Contractor shall not assign the payment of any monies due Contractor from City under the terms of this Agreement to any other individual, corporation or entity. City retains the right to pay any and all monies due Contractor directly to Contractor.

29. Form and Service of Notices. Any and all notices or other communications required or permitted by this Agreement or by law to be delivered to, served upon, or given to either party to this Agreement by the other party shall be in writing and shall be deemed properly delivered, served or given by one of the following methods:

a. Personally delivered to the party to whom it is directed. Service shall be deemed the date of delivery.

b. Delivered by e -mail to a known address of the party to whom it is directed provided the e -mail is accompanied by a n acknowledgment of receipt by the other party.

Service shall be deemed the date of acknowledgement.

c. Delivery by a reliable overnight delivery service, ex., Federal Express, receipted, addressed to the addressees set forth below the signatories to this Agreement.

Service shall be deemed the date of delivery.

d. Delivery by deposit in the United States mail, first class, postage prepaid.

Service shall be deemed delivered ninety-six (96) hours after deposit.

20 AGENDA ITEM NO. 5.

30. Entire Agreement. This Agreement, including the Project Documents, represents the entire Agreement between City and Contractor and supersedes all prior negotiations, representations or agreements, either written or oral with respect to the subject matter herein.

This Agreem ent may be amended only by written instrument signed by both City and Contractor.

31. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

32. Authority. The signatories to this Agreement warrant and represent that they have the legal right, power, and authority to execute this Agreement and bind their respective entities.

Evidence of Consultant’s authority is attached as Exhibit D.

33. Severability. In the event any term or provision of this Agreement is declared to be invalid or illegal for any reason, this Agreement will remain in full force and effect and will be interpreted as though such invalid or illegal provision were not a part of this Agreement. The remaining provisions will be construed to preserve the intent and purpose of this Agreement and the parties will negotiate in good faith to modify any invalidated provisions to preserve each party’s anticipated benefits.

34. Applicable Law and Interpretation and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. The language of all parts of this Agreement shall, in all cases, be construed as a whole, according to its fair meaning, and not strictly for or against either party. This Agreement is entered into by City and Contractor in the County of Fresno, California. Contractor shall perform the Work required under this Agreement in the County of Fresno, California. Thus, in the eve nt of litigation, venue shall only lie with the appropriate state or federal court in Fresno County.

35. Amendments and Waiver. This Agreement shall not be modified or amended in any way, and no provision shall be waived, except in writing signed by the parties hereto. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. Fail ure of either party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the remaining provisions of this Agreement.

36. Third Party Beneficiaries. Nothing in this Agreement shall be construed t o confer any rights upon any party not a signatory to this Agreement.

37. Execution in Counterparts. This Agreement may be executed in counterparts such that the signatures may appear on separate signature pages. A copy or an original, with all signatures appended together, shall be deemed a fully executed Agreement.

38. Alternative Dispute Resolution. If a dispute arises out of or relating to this Agreement, or the alleged breach thereof, and if said dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by non -binding mediation before resorting to litigation. The mediator shall be mutually selected by the parties, but in case of disagreement, the mediator shall be selected by lot from among two nominations provided by each party. All costs and fees required by the mediator shall be split equally by the parties, otherwise each party shall bear its own costs of mediation. If mediation fails to resolve the dispute within thirty (30) days, eithe r party may pursue litigation to resolve the dispute. 21 AGENDA ITEM NO. 5.

Demand for mediation shall be in writing and delivered to the other party to this Agreement. A demand for mediation shall be made within reasonable time after the claim, dispute or other matter in question has arisen. In no event shall the demand for mediation be made after the date when institution of legal or equitable proceedings based on such a claim, dispute or other matter in question would be barred by California statues of limitations.

39. Non-Discrimination. Contractor shall not discriminate on the basis of any protected class under federal or State law in the performance of the Work or with respect to any Contractor employees or applicants for employment. Contractor shall ensure that any subcontractors are bound to this provision. A protected class, includes, but is not necessarily limited to race, color, national origin, ancestry, religion, age, sex, sexual orientation, marital status, and disability.

Now, therefore, the City and Contractor have executed this Agreement on the date(s) set forth below.

CONTRACTOR CITY OF CLOVIS

By: __________________________ By:______________________________ John Holt, City Manager

Date: __________________ Date: ______________________

Party Identification and Contact Information:

Contractor City of Clovis
Sonitrol of Fresno General Services
Attn: Joey Rapo-Russell Attn: Stephen Frankian
Title: President, CEO Title: FM & Purchasing Manager 4220 W. Figarden Dr. 1033 Fifth Street
Fresno, CA 93722 Clovis, CA 93612
[email protected] [email protected] (559) 264-5924 [Phone Number] (559) 324-2705 [Phone Number]

ATTEST

_______________________________
Karey Cha, City Clerk

APPROVED AS TO FORM

_______________________________
Scott G. Cross, City Attorney
file:///J:\WDOCS\00601\037\AGT\00808561.DOC
22 AGENDA ITEM NO. 5.

EXHIBIT A

INSURANCE REQUIREMENTS

Prior to commencement of the Work, Contractor shall take out and maintain at its own expense the insurance coverage required by this Exhibit A. Contractor shall cause any subcontractor with whom Contractor contracts for the performance of Work pursuant to this Agreement to take out and maintain equivalent insurance coverage. Said insurance shall be maintained at all times during Contractor’s performance of Work under this Agreement, and for any additional period specified herein. All insurance shall be placed with insurance companies that are licensed and admitted to conduct business in the State of California and are rated at a minimum with an "A:VII" by A.M. Best Company, unless otherwise acceptable to the City.

a. Minimum Limits of Insurance. Contractor shall maintain the following types of insurance with limits no less than specified:

(i) General Liability Insurance (including operations, products and completed operations coverages) in an amount not less than $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. The General Liability Insurance shall be maintained for a period of ten (10) years following the earlier of completion of the Work by Contractor or termination of this Agreement.

(ii) Worker's Compensation Insurance as required by the State of California.

(iii) Business Automobile Liability Insurance in an amount not less than $1,000,000 per accident for bodily injury and property damage.

(iv) Umbrella or Excess Liability. In the event Contractor purchases an Umbrella or Excess insurance policy(ies) to meet the “Minimum Limits of Insurance,” this insurance policy(ies) shall “follow form” and afford no less coverage than t he primary insurance policy(ies). In addition, such Umbrella or Excess insurance policy(ies) shall also apply on a primary and non-contributory basis for the benefit of the City, its officers, officials, employees, agents and volunteers.

If Contractor maintains higher limits than the minimums shown above, the City shall be entitled to coverage at the higher limits maintained.

b. Other Insurance Provisions . The general liability policy is to contain, or be endorsed to contain, the following provisions:

(i) The City, its officers, officials, employees, agents, and volunteers are to be covered as insured's with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO 23 AGENDA ITEM NO. 5.

Form 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33 or CG 20 38; and CG 20 37 forms if later revisions used).

(ii) For any claims related to the Work performed pursuant to this Agreement, the Contractor’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

(iii) Each insurance policy required by this section shall be endorsed to state that the City shall receive written notice at least thirty (30) days prior to the cancellation, non - renewal, or material modification of the coverages required herein.

(iv) Contractor grants to the City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance.

Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

(v) Any deductibles or self-insured retentions must be declared to and approved by the City of Clovis Risk Services. The City may require the Contractor to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and rel ated investigations, claim administration, and defense expenses within the retention.

c. Evidence of Coverage. Contractor shall deliver to City written evidence of the above insurance coverages, including the required endorsements prior to commencing Work under this Agreement; and the production of such written evidence shall be an express condition precedent, notwithstanding anything to the contrary in this Agreement, to Contractor’s right to be paid any compensation under this Agreement. City's failur e, at any time, to object to Contractor’s failure to provide the specified insurance or written evidence thereof (either as to the type or amount of such insurance), shall not be deemed a waiver of City's right to insist upon such insurance later.

d. Maintenance of Insurance . If Contractor fails to furnish and maintain the insurance required by this section, City may (but is not required to) purchase such insurance on behalf of Contractor, and the Contractor shall pay the cost thereof to City upon demand, and City shall furnish Contractor with any information needed to obtain such insurance.

Moreover, at its discretion, City may pay for such insurance with funds otherwise due Contractor under this Agreement.

e. Subcontractors. If the Contractor should subcontract all or any portion of the work to be performed in this Agreement, the Contractor shall cover the subcontractor, and/or require each subcontractor to adhere to all the requirements contained herein. Similarly, any cancellation, lapse, reduction or change of subcontractor’s insurance shall have the same impact as described above.

f. Special Risks or Circumstances . The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer , coverage, or other special circumstances.

24 AGENDA ITEM NO. 5.
g. Indemnity and Defense. Except as otherwise expressly provided, the insurance requirements in this section shall not in any way limit, in either scope or amount, the indemnity and defense obligations separately owed by Contractor to City under this Agreement. 25 AGENDA ITEM NO. 5.

EXHIBIT B

PROJECT DESCRIPTION

SCOPE OF WORK

Furnish and install burglar alarm and access control devices at the new Landmark Square facilities including the senior center and transit hub buildings. All labor, material and equipment per the contractor’s proposal to provide a fully functioning turnkey system.

SCHEDULE

All work is the be scheduled by AMG Construction.

26 AGENDA ITEM NO. 5.

EXHIBIT C
CONTRACTOR’S PROPOSAL
Burglar Alarm/Access Control

27 AGENDA ITEM NO. 5.

28 AGENDA ITEM NO. 5.

29 AGENDA ITEM NO. 5.

30 AGENDA ITEM NO. 5.

EXHIBIT D

SIGNING AUTHORITY

31 AGENDA ITEM NO. 5.

TO: Mayor and City Council
FROM: General Services
DATE: March 7, 2022
SUBJECT: General Services – Approval – Res. 22-___, Amending the Executive Management Summary and Management Benefit Summary by Revising Holiday Pay for Fire Management, Updat ing Military Leave, Changing Extra Shift Coverage for Deputy Fire Chief and Battalion Chiefs ; and Authorize the City Manager to Execute the Agreement.

ATTACHMENTS: 1. Res. 22-___

CONFLICT OF INTEREST
None.

RECOMMENDATION
For the City Council to approve a resolution amending the Executive Management and Management Benefit Summary by revising holiday pay for Fire Management, updating military leave, changing extra shift coverage for Deputy Fire Chief and Battalion Chiefs, and authorizing the City Manager to execute the agreement.

EXECUTIVE SUMMARY
Staff is requesting approval to change the Management and Executive Management Benefit Summary by revising the sworn Fire Management holiday pay to equal that of sworn non - management staff. Changing the calculation for Deputy Fire Chief and Battalion Chief pay when they cover subordinate shifts provides Fire Management with a comparative amount of pay as that of their subord inates who would cover the shift or who they supervise . Military Leave changes are required to comply with state and federal law. Replace the existing language for Fire Safety Managers receiving time and half when responding to wildland or other types of emergency incidents outside the city.

BACKGROUND
The City Manager’s office has requested that staff update the Executive Managem ent Summary and Management Benefit Summary to include three primary revisions:

32 AGENDA ITEM NO. 6.

1. Increasing the quantity of holiday hours for Fire Management to equal the quantity of hours provided to non-management sworn staff which is 142.86. The change allows for an annual cash out of the entire annual allocation.

2. Updating Military Leave to comply with state and federal laws including coordination of benefits from the military pay for employees on active duty longer than 30 days in a fiscal year.

3. Changing the calculation for Deputy Fire Chief and Battalion Chiefs who backfill a subordinate’s shift to a provide a flat stipend of $650.00 for the first eight-hours of additional shift coverage, and $325.00 for each additional 4-hours. This equates to the pay a fill-in subordinate employee would receive for covering the shift.

4. Amend the language for Fire Safety Manager time and half their normal regular rate when responding to wildland or other types of emergency incidents outside the city.

These types of incidents are normally reimbursed by the requesting agency.

Minor revisions to correct typographic errors or to clarify are also included but have no substantive impacts to policy or their execution.

FISCAL IMPACT
The projected fiscal impact for the Holiday pay revision is approximately $15,000 annually.

Impact to military pay is unknown and depends on the number of employees who are called for active military duty. The projected fiscal impact for the changes to backfilling Fire shifts is estimated at $5,000. The additional costs will be absorbed by the department ’s current budgets. No additional funding is being requested.

REASON FOR RECOMMENDATION
It is recommended that the resolution be approved to revise the Executive Management Summary and Management Be nefit Summary to maintain parity between sworn Safety Management sworn non-management benefits. Military Leave changes are required to comply with state and federal law.

ACTIONS FOLLOWING APPROVAL
Personnel/Risk Management Personnel will distribute the revised Benefit Summaries to all affected employees and post them on the City’s website.

Prepared by: Shonna Halterman, General Services Director

Reviewed by: City Manager _AH__

33 AGENDA ITEM NO. 6.

ATTACHMENT 1
RESOLUTION 22-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS

AMENDING THE MANAGEMENT AND EXECUTIVE MANAGEMENT BENEFIT

SUMMARIES

WHEREAS, the City maintains the Benefit Summaries that describe various employee benefits provided to different classes of employees of the City of Clovis; and

WHEREAS, the City desires to increase the quantity of holiday hours for Fire Management to equal the quantity of hours provided to non-management sworn staff; and

WHEREAS, the City desires to revise military leave to comply with state and federal laws; and

WHEREAS, the City desires change the calculation for Deputy Fire Chief and Battalion Chiefs who backfill a subordinate’s shift to provide a flat stipend of $650.00 per each eight - hours of additional shift coverage to improve parity; and

WHEREAS, the City desires to amend the language for Fire Safety Managers when responding to wildland or other emergencies outside of the City.

NOW, THEREFORE , BE IT RESO LVED, that the City of Clovis Management Benefit Summary and Executive Management Benefit Summary be amended as noted in Attachment A and Attachment B.

* * * * *

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on March 7, 2022 by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:

______________________________ ______________________________ Mayor City Clerk

34 AGENDA ITEM NO. 6.

ATTACHMENT A TO ATTACHMENT 1

MANAGEMENT EMPLOYEES

BENEFITS SUMMARY

October 1, 2020March 15, 2022

The following is a summary of the benefits available to management employees of the City of Clovis.

For more information on any of the benefits listed below, contact the Personnel/Risk Management Division at (559) 324-2725.

1. PAID VACATION
Vacation is provided to allow employees paid time away from work to rest, recreate and return to work with renewed vigor and a fresh perspective. Increases in vacation accrual rates provide reinforcement for and recognition of length of service. Paid vacation time will accrue as follows per pay period/work days per year/maximum accrual. However, sworn Police and Fire command staff that enter City employment with a minimum of five (5) or more years of prior sworn law enforcement or sworn fire service experience with a public agency will accrue vacation leave at the level commensurate with their years of public service for benefit accrual purposes.

Years of Service 40 hour week Employees 56 hour week Employees 0 to 7th anniversary 5 hrs./15 days/280 hrs. Max. 7 hrs./15 days/392 hrs. Max. 8th to 14th anniversary 6 hrs./18 days/328 hrs. Max. 8.4 hrs./18 days/459.2 hrs. Max. 15th to 19th anniversary 6.7hrs./20 days/360 hrs. Max. 9.3 hrs./20 days/504 hrs. Max. 20th anniversary plus 8 hrs./24 days/424 hrs. Max. 11.2 hrs./24 days/593.6 hrs. Max.

2. PAID SICK LEAVE and SICK LEAVE INCENTIVE
a. In order to ensure that employees have the opportunity to tend to their health issues and provide incentive for judicious use of sick leave benefit, the City provides sick leave and a sick leave incentive program.

b. The sick leave incentive benefit compensates employees up to 50% of a calendar year’s unused accrual based on usage after an accumulation of 20 days of sick leave. The incentive is paid automatically on the first paycheck following November 16December 1st of each year.

Annual Sick Leave Incentive - 40 Hour Week Employees Hours Used During Preceding 12 Month Period Number of Cash-out Hours Available Percent of Cash-Out -0- 96 50% .1 to 8 88 45% 8 to 16 80 40% 16 to 24 72 35% 24 to 32 64 30% 32 to 40 56 25% 35 AGENDA ITEM NO. 6.

Management Employees Benefits Summary
March 15, 2022October 1, 2020

Annual Sick Leave Incentive 56 Hour Week Employees Hours Used During Preceding 12 Month Period Number of Cash-out Hours Available Percent of Cash-Out -0- 134.4 50% .1 to 11.2 123.2 45% 11.2 to 22.4 112 40% 22.4 to 33.6 100.8 35% 33.6 to 44.8 89.6 30% 44.8 to 56 78.4 25%

c. Managers who retire from the City with a normal retirement have the choice to cash-out up to 25% of their sick leave balance on their date of retirement. The cash-out may be applied to the deferred compensation plan, or may be received in cash. The balance of unused sick leave hours after the cash-out will be certified to PERS for the benefit known as “Credit for Unused Sick Leave.”

d. One-half (½) the annual accrual of sick leave per calendar year may be used to attend to an illness of a child, parent, spouse, registered domestic partner, sibling, parent-in-law, a grandparent, or a grandchild. (Labor Code 233(a)). Leave taken under Labor Code 233(a) will count toward the satisfaction of leave rights under AB1522.

e. Up to 24 hours or three (3) days of sick leave may be used by an employee who is a victim of domestic violence, sexual assault, or stalking for the purposes of:
 Seeking medical attention for injuries cause by domestic violence or sexual assault.  To obtain services from a domestic violence shelter, program, or rape crisis center as a result of domestic violence or sexual assault.
 To obtain psychological counseling related to an experience of domestic violence or sexual assault.
 To participate in safety planning and take other actions to increase safety from future domestic violence or sexual assault, including temporary or permanent relocation.

3. PAID HOLIDAYS
a. The City recognizes 10 scheduled paid holidays and one (1) paid floating holiday to be used at the mutual agreement of the employee and their supervisor. A four (4) hour floating holiday for all managers is available to be used on either the workday before Christmas Day or the workday before New Year’s Day, subject to the needs of the City.

b. On July 1st of each year, the Deputy Police Chief and Police Captains and Lieutenants shall be provided with 100 hours of holiday time in lieu of paid leave time off for holidays observed by the City. Up to 100 hours may be cashed-out each year at the employee’s option. 56/40 hour week Battalion Chiefs are provided with 200/142.86 hours of holiday time and are allowed to cash out up to 200/142.86 hours each year. The Deputy Fire Chief is provided with 100142.86 hours each year and may cash out up to 142.86 hours of holiday time each year. On July 1 of each year, the safety managers will notify finance of the number of holiday hours they intend to cash out or use so that it may be reported to PERS as earned in accordance with PERS 36 AGENDA ITEM NO. 6.

Management Employees Benefits Summary
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requirements. Holiday hours must be used or cashed within the fiscal year unless an extension for use has been approved by the City Manager. If available carry over hours are available from previous years, the Deputy Fire Chief may cash out up to 142.86 hours of holiday time each year.

c. If an employee leaves employment with the City prior to June 30, an amount equal to the pro- rata holiday time that has been unearned will be deducted from the final paycheck.

4. MANAGEMENT LEAVE
a. In recognition of the effort and contributions required of Management employees beyond the “normal” workday, the City provides additional leave time. Management employees receive 56 hours of management leave per fiscal year (posted on the first check after July 165th). Up to 56 hours of unused management leave is automatically cashed out on the first check after June 17th of each year. On June 30 of each year, remaining balances of management leave will automatically be cashed out to the employee. By request, up to 40 hours of unused management leave may be carried over until December 31st. Management leave cannot accumulate to an amount greater than 56 hours, except for hours carried over. After December 31st, balances exceeding the 56 hours will be reduced to the normal maximum of 56 hours.

b. Fifty-six (56) hour per week Fire Management employees will receive 78.4 hours of management leave. By request, they may carry over fifty-six (56) hours of unused management leave until December 31st. For these employees Management Leave cannot accumulate to an amount greater than 78.4 hours, except for hours carried over. After December 31st, balances exceeding the 78.4 hours will be reduced to the normal maximum of 78.4 hours.

5. MANAGEMENT INCENTIVE PAY
In recognition of the unique nature of the efforts and contributions required of Management employees, the City also provides Management Incentive Pay equal to one (1) hour of base rate pay each pay period that a Manager is in paid status. In addition to the one (1) hour of incentive pay, forty hour per week Battalion Chiefs will also receive 5% of base salary as additional management incentive pay.

6 LATERAL TRANSFER BENEFIT FOR SWORN COMMAND STAFF
In order to provide equity with lateral hires of sworn officers and firefighters and to enhance the ability of the City of Clovis to recruit the highest quality candidates for sworn Police and Fire command staff, the City will provide the following benefits:
 On hire to a sworn command staff position, a lateral hire with a minimum of five (5) or more years sworn law enforcement experience or sworn fire service experience with a public agency will receive 40 hours of management compensation time with no cash value and 40 hours of sick leave.
 Upon successful completion of probation, the lateral hire in a sworn command staff position will receive an additional 40 hours of management compensation time with no cash value and 40 hours of sick leave.

7. FAMILY ILLNESS & BEREAVEMENT LEAVE
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The City provides paid leave of up to 24 hours per calendar year to provide required personal care for immediate family members. The City also provides 40 hours of paid bereavement leave per calendar year for employees who experience the death of a family member to allow the employee to attend to various matters related to the passing of the family member. For the purposes of this Section, ‘immediate family” shall include husband, wife, registered domestic partner, mother/step, father/step, brother/step, sister/step, child/step, grandparent, grandchildren, mothers/fathers in-law, brothers/sisters in-law, sons/daughters in law or legal dependent of the employee.

8. VICTIMS OF DOMESTIC VIOLENCE, SEXUAL ASSAULT, AND STALKING As a victim of domestic violence, an employee has certain rights afforded by AB 2337. Those rights include the right to take time off for certain reasons related to the situation, a right to reasonable accommodation for the employee’s safety, and the right to be free from retaliation and discrimination. An employee who is a victim of domestic violence, sexual assault, or stalking should contact the Personnel office for more information.

9. MILITARY LEAVE
The City supports employees who serve in the military. Military Leave requests shall be administered in accordance with the provisions of applicable federal and state law. Employees on active duty Military Orders for 30 or less days in a fiscal year will receive paid Military Leave for that period of service. Copies of the orders must be provided to the department. Employees on may be on unpaid leave for any period of active duty over (30) calendar days in one fiscal year shall be paid the difference between the amount of their military pay and their regular pay with the City of Clovis starting on the 31st day of their leave. pursuant to state law. Employees that are on active military leave may be able to reinstate PERS credit for time missed while on an active leave. For more information, please contact the Personnel/Risk Management Division.

10. MEDICAL, DENTAL, PHARMACY, OPTICAL, and GROUP LIFE INSURANCE a. In order to provide employees with an opportunity to maintain the health and wellness of themselves and their dependents, the City provides health insurance that includes medical, prescription, dental, and vision coverage. In addition, the City provides life insurance coverage.

b. The City provides a variety of medical plan choices to employees. Each year before the open enrollment period in October/November, the City will provide the details of those options to employees. Employees may also elect dental, vision and life coverage only at a reduced rate or waive health benefits entirely. Employees who waive all health coverage (medical, dental, prescription, and vision coverage) are eligible for a $420.00 health insurance rebate each month.

To receive the $420.00 insurance rebate the employee must annually provide evidence of being covered on another group health plan. Employees who have exhausted their FMLA/CFRA rights and are on an unpaid leave of absence approved by the City Manager are eligible to continue their health insurance coverage for a period of up to 6 (six) months. After that, if eligible, employees will have to enroll in COBRA to continue health insurance coverage.

c. City paid life insurance coverage is $200,000 for the employee and $10,000 for dependents.

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11. RETIREE HEALTH INSURANCE
a. Employees with a minimum of five (5) years of service as a regular full time employee immediately preceding separation, and who are currently enrolled in a City health plan or other approved group health plan, and who retire in accordance with PERS age and service requirements are allowed to continue in a City sponsored Medical and Prescription plan at their expense. Details of the retiree health insurance program are provided to retirees active in the program each year before open enrollment.

b. Retiring Managers who do not meet the eligibility guidelines for the Retiree Health Insurance program will be eligible to continue the City Health Insurance at their own expense by exercising their COBRA rights.

12. SUPPLEMENTAL LIFE INSURANCE
Employees have the option to purchase supplemental life insurance in addition to the life insurance coverage provided by the City in item 108 above. Supplemental Group Life Insurance is available at the employee's expense by payroll deduction. There is a 30 day guaranteed purchase provision from date of hire. After 30 days from the date of hire, the insurance company has discretion, through the underwriting process, over policy issuance and amount of issuance.

The guaranteed issue amounts are: $100,000 for the employee, $25,000 for the spouse and $2,000 for children. The maximum additional insurance amount is $500,000 for employees, $250,000 for spouses and $2,000 for children.

13. BUSINESS TRAVEL INSURANCE
A $500,000 death benefit for Management employees who die while traveling on City business is provided by the City. Benefits are also paid for bodily dismemberment.

14. SHORT TERM/LONG TERM DISABILITY INSURANCE
a. In order to provide income replacement due to a non-work related event, the City provides Short and Long Term Disability Insurance. Short Term Disability Insurance provides a benefit equal to 66.67% of base salary up to $7,000 per month for up to 24 weeks after 14 days of disability. This benefit is paid for by each employee through payroll deduction.

b. If an employee continues to be disabled the Long Term Policy begins after 24 weeks. Long Term Disability provides a benefit equal to 66.67% of base salary up to $7,000 per month for up to two years after 180 days of disability. If an employee is permanently disabled from all occupations, a lifetime monthly benefit (to age 65) is paid to the employee. This benefit is paid for by each employee through payroll deduction.

15. EMPLOYEE ASSISTANCE PROGRAM
The Insight program is available to full-time City employees and household members to provide guidance, to promote wellness, and to help resolve personal issues that may be interfering with work or home life. Each employee or household member is entitled to three (3) free visits every six (6) months. (Sworn safety managers are eligible for an additional (3) free visits every six (6) month period.) Insight can be reached 24 hours a day at (559) 226-7437.

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16. RETIREMENT
a. The City has contracted with the California Public Employees Retirement System (PERS) for employee retirement benefits. The benefits provided are based on the benefit formula, age at retirement, compensation, and length of service in the system. The contract provisions also include a 2% cost of living adjustment, the Level 4 1959 Survivor Benefit, and sick leave service credit conversion for all Managers.

b. Employees hired before January 1, 2013 are classified by PERS as “Classic Employees” for retirement purposes. The following retirement formulas apply to PERS Classic Employees:

Misc. 2.7% at 55 formulas with 8% Employee paid contribution on a pre-tax basis.

Safety 3% at 50 formula with 9% Employee paid contribution on a pre-tax basis.

The PERS retirement benefit for Classic Employees will be based on the Employee’s highest 12 consecutive months of compensation.

c. Employees hired after January 1, 2013 are classified as “New Employees” by PERS for retirement purposes. The following retirement formulas apply to PERS New Employees:

Misc. 2.0% at 62 formulas with 6.75% Employee paid contribution on a pre-tax basis.

Safety 2.7% at 57 formula with 12.50% Employee paid contribution on a pre-tax basis.

The PERS retirement benefit for New Employees is based on the Employee’s highest 36 consecutive months of compensation.

The employee contribution rate for new members may be subject to change.

For example, the employee contributions may increase or decrease based on PERS funding requirements.

d. Additional Employee Cost-Sharing of PERS Contributions All employees participate in PERS retirement benefit cost-sharing in the form of additional percentages of employee compensation paid toward the City’s PERS retirement costs as follows:

Miscellaneous Employees: 8.4%
Safety Employees: 8.0%

17. PRE-RETIREMENT DEATH BENEFITS
a. The retirement contract with PERS includes a pre-retirement death benefit. If an employee is not eligible to retire (i.e., has not attained age 50 and at least five (5) years of PERS service credit) the employee’s beneficiary will receive the Basic Death Benefit which is a refund of the employee’s contributions plus interest and up to six (6) months’ pay. In addition the beneficiary will receive the 1959 Survivor Benefit which provides a monthly allowance of up to $2,280 for three (3) or more eligible survivors.

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b. Beneficiaries of employees who are eligible to retire may elect to receive the same benefit as noted above or the 1957 Survivor Benefit which provides a monthly allowance equal to one half of what the highest service retirement allowance would have been had the employee retired on the date of their death. In lieu of either of these benefits, an eligible survivor may receive the Pre-Retirement Option 2W Death Benefit. It provides a monthly benefit to the eligible survivor equal to the amount the employee would have received had the employee retired on the date of their death and elected Option 2W.

c. When the death of a safety employee who is not eligible to retire is determined to be job related the beneficiaries may receive the Special Death Benefit which provides a monthly allowance equal to one half of final compensation. If the cause of death is some external violence or physical force while on the job, and there are eligible children in addition to a spouse or registered domestic partner, the allowance may be increased to 75 percent. The beneficiary may elect to receive the Basic Death Benefit and the 1959 Survivor Benefit in place of the Special Death Benefit.

d. When the death of a safety employee who is eligible to retire is determined to be job related the beneficiaries may receive the Special Death Benefit which provides a monthly allowance equal to one half of final compensation. If the cause of death is some external violence or physical force while on the job, and there are eligible children in addition to a spouse or registered domestic partner, the allowance may be increased to 100 percent. The beneficiary may elect to receive the Basic Death Benefit and the 1959 Survivor Benefit in place of the Special Death Benefit.

18. DEFERRED COMPENSATION
An IRC Section 457 deferred compensation plan is available to all Management employees as a supplemental retirement plan, with the City matching the employee's contribution on a dollar for dollar basis up to 3% of the employee’s base pay.

19. VEHICLE ALLOWANCE
Designated management positions receive a $455 per month vehicle allowance in lieu of an assigned City vehicle for business and personal use pursuant to IRS regulations. Miles driven in excess of 50 miles round trip will be paid at the current IRS set mileage rate. To receive a vehicle allowance, the employee must maintain a valid California Driver’s license, maintain current registration and qualifying insurance (minimum limit of $300,000 combined single limit personal liability) on the vehicle, and provide proof of that insurance to the City ofby December 16 of each year. Failure to provide proof of insurance will result in the vehicle allowance being suspended until the proof is provided. For more information, see the City’s Business Travel Policy.

20. CELLULAR TELEPHONE PROGRAM
Designated management employees will receive a $50 per month cellular phone allowance for business and personal use pursuant to IRS regulations.

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21. COMPUTER LOAN PROGRAM
The computer loan program is intended to encourage computer ownership in order to improve computer skills and organizational efficiency. The City will loan up to $3,000 for a period of 24 months, interest free, for Management employees to purchase a computer, software, and related devices for professional development and personal use.

22. PROFESSIONAL DEVELOPMENT
The City shall reimburse employees in the Unit for the cost of tuition, required fees (such as a health fee), required textbooks or e-books, for job-related courses leading to a college degree. To be eligible for reimbursement, the course must be related to job duties or related to a position to which an employee might reasonably aspire.

The maximum reimbursement rate will be calculated September 1 of each year as the total of eight (8) semesters full-time undergraduate tuition, including required fees, at California State University Fresno. A total of $2,000 for required textbooks or e-books will be added to the tuition fees noted above for a grand total maximum reimbursement. Expenses for courses which began prior to July 1, 2019 will not be included in the maximum lifetime allocation.

Reimbursement under this Section shall be made under the following conditions:

A. Employees must have completed their initial probationary period with the City.

B. By February 28 of each year, employees must submit a written request to participate in the Educational Incentive Program including an estimate of costs to be incurred during the following fiscal year.

C. Course work must be for an accredited college or university degree program, and have the prior approval of the Department Head. Accreditation shall be through the U.S.

Department of Education unless otherwise approved by the Department Head.

D. An employee will be eligible for reimbursement of approved expenses for either an Associates, Bachelor’s or Master’s degree. Fees for any combination of these degrees may be reimbursed as long as they do not exceed the employee’s maximum allocation for the Educational Incentive Program.

E. Course work must be work-related and determined by the Department Head to be of benefit to the City. Required course work as part of an approved undergraduate or master’s degree program is eligible for reimbursement.

F. Reimbursement of approved course work and related expenses shall be contingent upon the attainment of a letter grade of “C” or better, or “Pass” in a course with Pass/Fail grading. Reimbursement shall be made after the employee submits expense receipts and proof of letter grade.

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G. Fees not required for enrollment such as parking, graduation related expenses, or travel will not be reimbursed.

H. All courses for which reimbursement is sought shall be taken while off duty and not in paid status.

23. SOCIAL SECURITY/MEDICARE
The City of Clovis does not participate in Social Security, except as required for Medicare for employees hired after April 30, 1986.

24. STAND-BY COMPENSATION
Stand-by compensation shall be provided for managers in the Information Technology Division who participate in the regularly scheduled rotation of 24-hour/7-day coverage for computer services. Compensation for the 24/7 period shall be equivalent to 30% of the weekly base salary.

Actual callbacks shall be paid at the straight time rate for actual hours worked.

25. PUBLIC SAFETY FITNESS INCENTIVE
In the interest of public safety, the City encourages its public safety managers to maintain a high state of health, wellness, and fitness. To that end, employees in police management classifications who participate in physical fitness testing and attain the necessary benchmarks will receive the same incentive provided to represented employees in the respective departments. (Note: Fire Management Fitness Incentive was added into step one of the salary schedule for Deputy Chief and Battalion Chiefs on July 1, 2019.)

26. PUBLIC SAFETY MANAGERS EXTRA SHIFT COVERAGE
Subject to approval by the City Manager, the Deputy Police Chief, Police Captains and Police Lieutenants, and Deputy Fire Chief and Battalion Chiefs, and the Communications Supervisor, Supervisor of Animal Services, and Public Safety Management Analysts who are required to back fill for a subordinate’s shift or fill a shift for another safety manager in the same position due to staffing will be provided with additional compensation provided that the extra shift requires working hours beyond those hours regularly scheduled for the work week. The additional compensation will be paid at the straight time rate of pay of the manager filling the shift, unless the manager is filling the shift for a subordinate. When filling a shift for a subordinate, the rate of compensation will be the straight time rate for step 5 of the classification being filled for the duration of the extra shift coverage assignment. If the assignment includes a 56 hour week assignment, the public safety manager will be paid at the 56 hour rate of pay.

Subject to approval, the Deputy Fire Chief and Battalion Chiefs who are required to backfill for a subordinate’s shift or fill a shift for another safety manager in the same position due to staffing will be provided with an additional stipend provided that the extra shift requires working beyond those hours regularly scheduled for the work week. The stipend shall be $650.00 for the first eight-hours of additional shift coverage and $325.00 for each additional four-hours of shift coverage.

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Deployment pay for Safety Managers under a contract for service with another government agency will be provided at the contracted rate up to 1.5 times the employee’s normal hourly rate (56 or 40 hour). Fire Safety Managers assigned to emergency incidents, such as Out of County, Assistance by Hire (ABH), Master Mutual/Auto Aid, and California Firefighting Assistance Agreement (CFAA) responses and working beyond their normal scheduled duty hours will be eligible for time and a half their regular rate. This includes portal to portal for all hours worked/assigned. Fire Safety Managers working backfill for employees assigned to these types of incidents will receive time and half for all hours of coverage as needed by the department.

27. PUBLIC SAFETY EXTRAORDINARY INCIDENT STIPEND
Each fiscal year, upon recommendation of the Police Chief, the City Manager will have discretion to authorize up to an additional 40 hours of paid compensation to Police Department Command Staff and the Public Affairs and Information Manager who have worked extraordinary law enforcement events or have participated in extraordinary instances or circumstances which required significant additional time in excess of their regular work schedule.

Each fiscal year, upon recommendation of the Fire Chief, the City Manager will have the discretion to authorize up to an additional 40 hours of paid compensation to the Deputy Fire Chief, and Special Projects and Life Safety Manager who have worked extraordinary events or have participated in extraordinary instances or circumstances which required significant additional time in excess of their regular work schedule.

28. UNIFORMS
Uniform allowance is provided to management employees as follows:

Sworn Fire Management: $1,500.00 per fiscal year, paid each pay period.

Sworn Police Management: $1200.00 per fiscal year, paid annually in January.

Utility Managers: Purchased by City.

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ATTACHMENT B TO ATTACHMENT 1

EXECUTIVE MANAGEMENT

EMPLOYEES BENEFITS SUMMARY

October 1, 2020March 15, 2022

The following is a summary of the benefits available to Executive Management employees of the City of Clovis. For more information on any of the benefits listed below, contact the Personnel/Risk Management Division at (559) 324-2725.

Executive Management classifications include the City Manager, Assistant City Manager/City Clerk, Community and Economic Development Director, Planning and Development Services Director, Finance Director, Fire Chief, General Services Director, Police Chief, and Public Utilities Director.

1. PAID VACATION
Vacation is provided to allow employees paid time away from work to rest, recreate, and return to work with renewed vigor and fresh perspectives. Increases in vacation accrual rates provide reinforcement for and recognition of length of service. Paid vacation time will accrue as follows per pay period/work days per year/maximum accrual. However, Executive Managers that enter City employment with prior public agency experience will accrue vacation leave at the level commensurate with their years of public service for benefit accrual purposes.

Years of Service 40 hour week Employees 56 hour week Employees 0 to 7th anniversary 5 hrs./15 days/280 hrs. Max. 7 hrs./15 days/392 hrs. Max. 8th to 14th anniversary 6 hrs./18 days/328 hrs. Max. 8.4 hrs./18 days/459.2 hrs. Max. 15th to 19th anniversary 6.7hrs./20 days/360 hrs. Max. 9.3 hrs./20 days/504 hrs. Max. 20th anniversary plus 8 hrs./24 days/424 hrs. Max. 11.2 hrs./24 days/593.6 hrs. Max.

2. PAID SICK LEAVE and SICK LEAVE INCENTIVE
a. In order to ensure that employees have the opportunity to tend to health issues and to provide incentive for judicious use of the sick leave benefit, the City provides paid sick leave and a sick leave incentive program.

b. The sick leave incentive benefit compensates employees up to 50% of a calendar year’s unused accrual based on usage after an accumulation of 20 days of sick leave. The incentive is paid automatically on the first paycheck following November 16December 1st of each year.

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Annual Sick Leave Incentive - 40 Hour Week Employees Hours Used During Preceding 12 Month Period Number of Cash-Out Hours Available Percent of Cash-Out -0- 96 50% .1 to 8 88 45% 8 to 16 80 40% 16 to 24 72 35% 24 to 32 64 30% 32 to 40 56 25%

c. Executive Managers have the choice to receive up to 50% cash-out of total accrued sick leave at the time of retirement, or a 25% cash-out at the time of separation of employment in good standing for reasons other than a “normal” retirement. The cash-out may be applied to the deferred compensation plan, or may be received in cash. The balance of unused sick leave hours after the cash-out will be certified to PERS for the benefit known as “Credit for Unused Sick Leave.”

d. One-half (½) of the annual accrual of sick leave per calendar year may be used to attend to the health issues of a child, parent, spouse, registered domestic partner, sibling, parent- in-law, grandparent, or grandchild. (Labor Code 233(a)). Leave taken under Labor Code 233(a) will count toward the satisfaction of leave rights under AB1522.

e. Up to 24 hours or three (3) days of sick leave may be used by an employee who is a victim of domestic violence, sexual assault, or stalking for the purposes of:
 Seeking medical attention for injuries cause by domestic violence or sexual assault.
 To obtain services from a domestic violence shelter, program, or rape crisis center as a result of domestic violence or sexual assault.  To obtain psychological counseling related to an experience of domestic violence or sexual assault.
 To participate in safety planning and take other actions to increase safety from future domestic violence or sexual assault, including temporary or permanent relocation.

3. PAID HOLIDAYS
a. The City recognizes 10 scheduled paid holidays, and one (1) paid floating holiday to be used at the mutual agreement of the employee and their supervisor. A four (4) hour floating holiday for all managers is available to be used on either the workday before Christmas Day or the workday before New Year’s Day, subject to the needs of the City.

b. On July 1st of each year, the Fire Chief and Police Chief shall receive 100 hours in the Holiday Hour Bank in lieu of paid leave time-off for holidays observed by the City. Up to 100 hours may be cashed-out each year at the Fire and Police Chief’s option. On July 1st of each year, the Fire Chief shall receive 142.86 hours in the Holiday Hour Bank in lieu of paid leave time-off for holidays observed by the City. Up to 142.86 hours may be cashed- out each year at the Fire Chief’s option. On July 1 of each year, the Fire Chief and Police Chief will notify finance of the number of holiday hours they intend to cash out or use so 46 AGENDA ITEM NO. 6.

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that it may be reported to PERS as earned in accordance with PERS requirements. Holiday hours must be used or cashed within the fiscal year unless an extension for use has been approved by the City Manager. If available carry over hours are available from previous years, the Fire Chief may cash out up to 142.86 hours of holiday time each year.

c. If the Fire / Police Chief leaves City employment prior to June 30th, an amount equal to the pro-rata holiday time that has been unearned during the fiscal year will be deducted from their final paycheck.

4. MANAGEMENT LEAVE
In recognition of the effort and contributions required of Executive Management employees beyond the “normal” workday, the City provides additional leave time.

Executive Management employees receive 96 hours of management leave per fiscal year (posted on the first check after July 165th). Up to 56 hours of unused management leave is automatically cashed out on the first check after June 17thJuly 1st of each year. Forty (40) hours of management leave has no cash-out value. On June 30th of each year, up to a maximum of 40 hours of unused management leave will automatically be carried over until December 31st. Management leave cannot accumulate to an amount greater than 96 hours, except for hours carried over. After December 31st, balances exceeding the 96 hours will be reduced to the normal maximum of 96 hours.

5. MANAGEMENT INCENTIVE PAY
In recognition of the unique nature of the effort and contributions required of Management employees, the City also provides Management Incentive Pay equal to one (1) hour of base rate pay each pay period that a Manager is in paid status.

6. LATERAL TRANSFER BENEFIT FOR POLICE AND FIRE CHIEF
In order to provide equity with other sworn command staff and to enhance the ability of the City of Clovis to recruit the highest quality candidates for the sworn positions of Police and Fire Chiefs’ the City will provide the following benefits:
 On hire, a lateral hire for Police Chief or Fire Chief will receive 40 hours of management compensation time with no cash value and 40 hours of sick leave.  Upon successful completion of probation, the lateral hire Police Chief or Fire Chief will receive an additional 40 hours of management compensation time with no cash value and 40 hours of sick leave.

7. FAMILY ILLNESS & BEREAVEMENT LEAVE
The City provides paid leave of up to 24 hours per calendar year for the purpose of providing personal care for immediate family members. The City also provides 40 hours of paid bereavement leave per calendar year for employees who experience the death of a family member to allow the employee to attend to various matters related to the passing of the family member. For the purposes of this Section, ‘immediate family” shall include husband, wife, registered domestic partner, mother/step, father/step, brother/step, sister/step, child/step, grandparent, grandchildren, mothers/fathers in-law, brothers/sisters in-law, sons/daughters in law or legal dependent of the employee.

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8. VICTIMS OF DOMESTIC VIOLENCE, SEXUAL ASSAULT, AND STALKING As a victim of domestic violence, an employee has certain rights afforded by AB 2337.

Those rights include the right to take time off for certain reasons related to the situation, a right to reasonable accommodation for the employee’s safety, and the right to be free from retaliation and discrimination. An employee who is a victim of domestic violence, sexual assault, or stalking should contact the Personnel office for more information.

9. MILITARY LEAVE
The City supports employees who serve in the military. Military Leave requests shall be administered in accordance with the provisions of applicable federal and state law.

Employees on active duty Military Orders for 30 or less days in a fiscal year will receive paid Military Leave for that period of service. Copies of the orders must be provided to the department. Employees may be on unpaid leave for any period of active duty over 30 calendar days in one fiscal year shall be paid the difference between the amount of their military pay and their regular pay with the City of Clovis starting on the 31st day of their leave. pursuant to state law. Employees that are on active military leave may be able to reinstate PERS credit for time missed while on an active leave. For more information, please contact the Personnel/Risk Management Division.

10. MEDICAL, DENTAL, PHARMACY, OPTICAL, and GROUP LIFE INSURANCE a. In order to provide employees with an opportunity to maintain the health and wellness of themselves and their dependents, the City provides health insurance that includes medical, prescription, dental, and vision coverages. In addition, the City provides life insurance coverage.

b. The City provides a variety of medical plan choices to employees. Each year before the open enrollment period in October/November, the City will provide the details of those options to employees. Employees may also elect dental, vision and life coverage only at a reduced rate or waive health benefits entirely. Employees who waive all health coverage (medical, dental, prescription, and vision coverage) are eligible for a $420.00 health insurance rebate each month. To receive the $420.00 health rebate the employee must annually provide evidence of being covered on another group health plan. Employees who have exhausted their FMLA/CFRA rights and are on an unpaid leave of absence approved by the City Manager are eligible to continue their health insurance coverage for a period of up to 6 (six) months. After that, if eligible, employees will have to enroll in COBRA to continue health insurance coverage.

c. City-paid life insurance coverage for Executive Managers is $300,000 for the employee and $10,000 for dependents.

11. RETIREE HEALTH INSURANCE
a. Employees with a minimum of five (5) years of service as a regular full time employee immediately preceding separation, and who are currently enrolled in a City health plan or other approved group health plan, and who retire in accordance with PERS age and service requirements are allowed to continue in a City sponsored Medical and Prescription plan at their expense. Details of the retiree health insurance program are provided to retirees active in the program each year before open enrollment.

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b. Retiring Managers who do not meet the eligibility guidelines for the Retiree Health Insurance program will be eligible to continue the City Health Insurance at their own expense by exercising their COBRA rights.

12. SUPPLEMENTAL LIFE INSURANCE
Employees have the option to purchase supplemental life insurance in addition to the life insurance coverage provided by the City in Item 810 above. Supplemental Group Life Insurance is available at the employee's expense by payroll deduction. There is a 30 day guaranteed purchase provision from date of hire. After 30 days from the date of hire, the insurance company, through the underwriting process, has discretion over policy issuance and amount of issuance. The guaranteed issue amounts are: $100,000 for the employee, $25,000 for the spouse and $2,000 for children. The maximum additional insurance amount is $500,000 for employees, $250,000 for spouses and $2,000 for children.

13. BUSINESS TRAVEL INSURANCE
A $500,000 death benefit for Executive Management employees who die while traveling on City business is provided by the City. Benefits are also paid for bodily dismemberment.

14. SHORT TERM/LONG TERM DISABILITY INSURANCE
a. In order to provide income replacement due to a non-work related event, the City provides Short and Long Term Disability Insurance. Short Term Disability Insurance provides a benefit equal to 66.67% of base salary up to $7,000 per month for up to 24 weeks after 14 days of disability. This benefit is paid for by each employee through payroll deduction.

b. If an employee continues to be disabled, the Long Term Policy begins after 24 weeks.

Long Term Disability provides a benefit equal to 66.67% of base salary up to $7,000 per month for up to two years after 180 days of disability. If an employee is permanently disabled from all occupations, a lifetime monthly benefit (to age 65) is paid to the employee. This benefit is paid for by each employee through payroll deduction.

15. EMPLOYEE ASSISTANCE PROGRAM
The Insight program is available to full-time City employees and household members to provide guidance to promote wellness and to help resolve personal issues that may be interfering with work or home life. Each employee or household member is entitled to three (3) free visits every six (6) months. (Each sworn safety employee is entitled to an additional (3) free visits every (6) month period.) Insight can be reached 24 hours a day at (559) 226-7437.

16. RETIREMENT
a. The City has contracted with the California Public Employees Retirement System (PERS) for employee retirement benefits. The benefits provided are based on the benefit formula, age at retirement, compensation, and length of service in the system. The contract provisions also include a 2% cost of living adjustment, the Level 4 1959 Survivor Benefit, and sick leave service credit conversion for all Managers.

49 AGENDA ITEM NO. 6.

Executive Management Employees Benefits Summary
October 1, 2020March 15, 2022

b. Employees hired before January 1, 2013, are classified by PERS as “Classic Employees” for retirement purposes. The following retirement formulas apply to PERS Classic Employees:

Misc. 2.7% at 55 formulas with 8% Employee paid contribution on a pre-tax basis.

Safety 3% at 50 formula with 9% Employee paid contribution on a pre-tax basis.

The PERS retirement benefit for Classic Employees will be based on the employee’s highest 12 consecutive months of compensation.

c. Employees hired after January 1, 2013, are classified as “New Employees” by PERS for retirement purposes. The following retirement formulas apply to PERS New Employees:

Misc. 2.0% at 62 formulas with 6.75% Employee paid contribution on a pre-tax basis.

Safety 2.7% at 57 formula with 12.50% Employee paid contribution on a pre-tax basis.

The PERS retirement benefit for New Employees is based on the employee’s highest 36 consecutive months of compensation.

The employee contribution rate for PERS New Employees may be subject to change. For example the employee contributions may increase or decrease based on PERS funding requirements.

d. Additional Employee Cost-Sharing of PERS Contributions:

All employees participate in PERS retirement benefit cost-sharing in the form of additional percentages of employee compensation paid toward the City’s PERS retirement costs as follows:

Miscellaneous Employees: 8.4% cost sharing
Safety Employees: 8.0% cost sharing

17. PRE-RETIREMENT DEATH BENEFITS
a. The City’s retirement contract with PERS includes a pre-retirement death benefit. If an employee is not eligible to retire (i.e., has not attained age 50 and at least five (5) years of PERS service credit) the employee’s beneficiary will receive the Basic Death Benefit which is a refund of the employee’s contributions plus interest and up to six (6) month’s pay. In addition, the beneficiary will receive the 1959 Survivor Benefit which provides a monthly allowance of up to $2,280 for three (3) or more eligible survivors.

b. Beneficiaries of employees who are eligible to retire, may elect to receive the same benefit as noted above or the 1957 Survivor Benefit which provides a monthly allowance equal to one half of what the highest service retirement allowance would have been had the employee retired on the date of their death. In lieu of either of these benefits, an eligible survivor may receive the Pre-Retirement Option 2W Death Benefit. It provides a monthly 50 AGENDA ITEM NO. 6.

Executive Management Employees Benefits Summary
October 1, 2020March 15, 2022

benefit to the eligible survivor equal to the amount the employee would have received had the employee retired on the date of their death and elected Option 2W.

c. When the death of a safety employee who is not eligible to retire is determined to be job related the beneficiaries may receive the Special Death Benefit which provides a monthly allowance equal to one half of final compensation. If the cause of death is some external violence or physical force while on the job, and there are eligible children in addition to a spouse or registered domestic partner, the allowance may be increased to 75 percent. The beneficiary may elect to receive the Basic Death Benefit and the 1959 Survivor Benefit in place of the Special Death Benefit.

d. When the death of a safety employee who is eligible to retire is determined to be job related the beneficiaries may receive the Special Death Benefit which provides a monthly allowance equal to one half of final compensation. If the cause of death is some external violence or physical force while on the job, and there are eligible children in addition to a spouse or registered domestic partner, the allowance may be increased to 100 percent. The beneficiary may elect to receive the Basic Death Benefit and the 1959 Survivor Benefit in place of the Special Death Benefit.

18. DEFERRED COMPENSATION
An IRC Section 457 deferred compensation plan is available to all Management employees as a supplemental retirement plan, with the City matching the employee's contribution on a dollar for dollar basis up to 3% of the employee’s base pay.

19. VEHICLE ALLOWANCE
Executive Managers receive a $500 per month vehicle allowance, unless modified by an employment agreement, in lieu of an assigned City vehicle for business and personal use pursuant to IRS regulations. Miles driven in excess of 50 miles round-trip will be paid at the current IRS set mileage rate. To receive a vehicle allowance, the employee must maintain a valid California Driver’s license, maintain current registration and qualifying insurance (minimum limit of $300,000 combined single limit personal liability) on the vehicle, and provide proof of that insurance to the City by December 16 of each year.

Failure to provide proof of insurance will result in the vehicle allowance being suspended until the proof is provided. For more information, see the City’s Business Travel Policy.

20. CELLULAR TELEPHONE PROGRAM
Executive Management employees will receive a $50 per month cellular phone allowance for business and personal use pursuant to IRS regulations.

21. COMPUTER LOAN PROGRAM
The computer loan program is intended to encourage computer ownership in order to improve computer skills and organizational efficiency. The City will loan up to $3,000 for a period of 24 months, interest free, for Executive Management employees to purchase a computer, software, and related devices for professional development and personal use.

22. PROFESSIONAL DEVELOPMENT
The City shall reimburse employees in the Unit for the cost of tuition, required fees (such as a health fee), required textbooks or e-books, for job-related courses leading to a college 51 AGENDA ITEM NO. 6.

Executive Management Employees Benefits Summary
October 1, 2020March 15, 2022

degree. To be eligible for reimbursement, the course must be related to job duties or related to a position to which an employee might reasonably aspire.

The maximum reimbursement rate will be calculated September 1 of each year as the total of eight (8) semesters full-time undergraduate tuition, including required fees, at California State University Fresno. A total of $2,000 for required textbooks or e-books will be added to the tuition fees noted above for a grand total maximum reimbursement. Expenses for courses which began prior to July 1, 2019 will not be included in the maximum lifetime allocation.

Reimbursement under this Section shall be made under the following conditions:

A. Employees must have completed their initial probationary period with the City.

B. By February 28 of each year, employees must submit a written request to participate in the Educational Incentive Program including an estimate of costs to be incurred during the following fiscal year.

C. Course work must be for an accredited college or university degree program, and have the prior approval of the Department Head. Accreditation shall be through the U.S. Department of Education unless otherwise approved by the Department Head.

D. An employee will be eligible for reimbursement of approved expenses for either an Associates, Bachelor’s or Master’s degree. Fees for any combination of these degrees may be reimbursed as long as they do not exceed the employee’s maximum allocation for the Educational Incentive Program.

E. Course work must be work-related and determined by the Department Head to be of benefit to the City. Required course work as part of an approved undergraduate or master’s degree program is eligible for reimbursement.

F. Reimbursement of approved course work and related expenses shall be contingent upon the attainment of a letter grade of “C” or better, or “Pass” in a course with Pass/Fail grading. Reimbursement shall be made after the employee submits expense receipts and proof of letter grade.

G. Fees not required for enrollment such as parking, graduation related expenses, or travel will not be reimbursed.

H. All courses for which reimbursement is sought shall be taken while off duty and not in paid status.

23. SOCIAL SECURITY/MEDICARE
The City of Clovis does not participate in Social Security, except as required for Medicare for employees hired after April 30, 1986.

24. PUBLIC SAFETY FITNESS INCENTIVE
52 AGENDA ITEM NO. 6.

Executive Management Employees Benefits Summary
October 1, 2020March 15, 2022

In the interest of public safety, the City encourages its public safety managers to maintain a high state of health, wellness, and fitness. To that end, employees in police management classifications who participate in physical fitness testing and attain the necessary benchmarks will receive the same incentive provided to represented employees in the respective departments. (Note: The Fire Management Fitness Incentive was added into step one of the salary schedule for the Fire Chief on July 1, 2019.)

25. PUBLIC SAFETY COMMAND STAFF EXTRAORDINARY INCIDENT STIPEND Each fiscal year, upon recommendation, the City Manager will have the discretion to authorize up to an additional 40 hours of paid compensation to the Police and Fire Chiefs who have worked extraordinary law enforcement or fire events or other major incidents which required significant additional time in excess of their regular work schedule and for which they have not otherwise received compensation for those hours worked.

26. UNIFORMS
Uniform allowance is provided to public safety Executive Management employees as follows:

Fire $1500.00 per fiscal year, paid each pay period.

Police $1200.00 per fiscal year, paid annually each January.

53 AGENDA ITEM NO. 6.

TO: Mayor and City Council
FROM: Planning and Development Services
DATE: March 7, 2022
SUBJECT: Planning and Development Services - Approval – Res. 2 2-___, Final Map Tract 6284, located in the southeast area of North Sunnyside Avenue and Teague Avenue (Woodside 06N, LP).

ATTACHMENTS: 1. Res. 22-___

2. Vicinity Map

3. Copy of Final Map

CONFLICT OF INTEREST
None.

RECOMMENDATION
For the City Council to approve Res. 22-___, which will:

1. Accept the offer of dedication of parcels and public utility easements within Tract 6284, and

2. Authorize the recording of the final map.

EXECUTIVE SUMMARY
The owner, Woodside 06N, LP , acting as the subdivider, has submitted a final map. The improvement plans are being processed by City staff. The improvements to be installed include curb, gutter, sidewalk, streetlights, fire hydrants, street paving, sanitary sewer, water mains, and landscaping. The subject tract is located at the southeast area of North Sunnyside Avenue and Teague Avenue . It contains approximately 32.04 acres and consists of 74 residential units, zoned R-1.

FISCAL IMPACT
The subdivider will be installing curb, gutter, sidewalk, fire hydrants, street paving, sanitary sewer, water mains, and landscaping, which will be perpetually maintained by the City of Clovis.

For the streetlights, the City will pay for the power and PG&E will provide the maintenance.

54 AGENDA ITEM NO. 7.

REASON FOR RECOMMENDATION
The subdivision agreement has been executed by the subdivider and all development fees paid or deferred in accordance with the Municipal Code. The agreement provides for the developer to complete a technically correct map and improvement plans, and to complete all the required improvements in compliance with the conditions of approval. The improvements are adequately secured.

ACTIONS FOLLOWING APPROVAL
The final map will be filed with the Fresno County Recorder’s office for recording.

Prepared by: Tiffany Ljuba-Silguero, Engineer I

Reviewed by: City Manager __AH___

55 AGENDA ITEM NO. 7.

ATTACHMENT 1
RESOLUTION 22-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS
APPROVING FINAL SUBDIVISION MAP FOR TRACT NO. 6284

WHEREAS, a final map has been presented to the City Council of the City of Clovis for Tract 6284, by The City of Clovis, a Municipal Corporation, and WHEREAS, said final tract conforms to the requirements of Chapter 2, Part 2, of Division 4 of the Business and Professions Code and to local ordinances; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Clovis as follows:

1. The final map of Tract 6284, consisting of four (4) sheets, a copy of which is on file with the City Clerk, be and the same is hereby approved.

2. The subdivision improvement plans for said tract have been approved by City Staff.

3. The preliminary Engineer’s Cost Estimate of development cost of said tract, a copy of which is on file with the City Clerk, be and the same is hereby approved and adopted as the estimated cost of improvements for said subdivision in the sum of $4,950,770.00.

4. The offer and dedication for public use of the parcels and easements specified on said map are accepted by the City of Clovis and the City Clerk is authorized and directed to execute said subdivision map.

5. This Council finds that the proposed subdivision, together with the provisions for its design and improvement, are consistent with applicable general and specific plans of the City of Clovis.

6. Improvement Security, as provided hereunder and in said Subdivision Agreement, is fixed at one hundred percent (100%) of the remaining improvements to be constructed or the sum of $4,951,000.00 for guaranteeing specific performance of said agreement and fi fty percent (50%) of the remaining improvements or the sum of $2,475,000.00 for payment of labor and materials furnished by contractors, subcontractors, labormen and materialmen in connection with the improvements required to be made or constructed by said subdivider in conformity with said subdivision map or said agreement.

7. Subdivider shall furnish a bond in the sum of $495,100.00 being the amount determined by the City Council of the City as necessary for the guarantee and warranty of the work for a period of one year following the completion and acceptance of the tract 56 AGENDA ITEM NO. 7.
against any defective work or labor done, or defective mat erials furnished. Said bond is required to be furnished prior to acceptance of the tract by the City Council.

* * * * *

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on March 7, 2022, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:

Mayor City Clerk

57 AGENDA ITEM NO. 7.

Attachment 2
58 AGENDA ITEM NO. 7.
59 AGENDA ITEM NO. 7.
60 AGENDA ITEM NO. 7.
61 AGENDA ITEM NO. 7.
62 AGENDA ITEM NO. 7.

TO: Mayor and City Council
FROM: Planning and Development Services
DATE: March 7, 2022
SUBJECT: Planning and Development Services - Approval – Res. 22-___, Annexation of Proposed Tract 6284, located in the southeast area of North Sunnyside Avenue and Teague Avenue to the Lan dscape Maintenance District No. 1 of the City of Clovis (Woodside 06N, LP).

ATTACHMENTS: 1. Res. 22-___

CONFLICT OF INTEREST
None.

RECOMMENDATION
For the City Council to approve Res. 22-___, which will annex proposed Tract 6284, located at the southeast area of North Sunnyside Avenue and Teague Avenue to the Landscape Maintenance District (LMD) No. 1 of the City of Clovis.

EXECUTIVE SUMMARY
The owner, Woodside 06N, LP , acting as the subdivider, has requested to be annexed to th e LMD No. 1 of the City of Clovis as set forth by the Conditions of Approval for Tentative Tract 6284.

BACKGROUND
Woodside 06N, LP, the developer of Tract 6284, has executed a covenant that this development be annexed to the City of Clovis, LMD No. 1 . An executed copy can be provided on request.

Council formed the original District on July 15, 1985, for the purpose of funding the maintenance of landscaped areas and parks.

Under the provisions of the Landscaping and Lighting Act of 1972 and in accordance with Article XIII C and Article XIII D of Proposition 218, all the owners of property pro posed for annexation have provided a written request and consent to annexatio n and have executed a covenant (petition) indicating acceptance of the annual assessment.

63 AGENDA ITEM NO. 8.

FISCAL IMPACT
This project will add landscaping to the LMD No. 1 of the City of Clovis shown as follows:

Tract 6284 Year to Date

LMD Landscaping added: 0.541 acres 7.869 acres

Resource needs added: 0.054 persons 0.786 persons

The resource needs estimate is based on 1 person per 10 acres of landscaped area.

REASON FOR RECOMMENDATION
The property owners for the subject tract have requested annexation into the City of Clovis LMD No. 1.

ACTIONS FOLLOWING APPROVAL
Tract 6284 shall become a part of City of Clovis LMD No. 1 and will be assessed next year for maintenance costs.

Prepared by: Tiffany Ljuba-Silguero, Engineer I

Reviewed by: City Manager _AH__

64 AGENDA ITEM NO. 8.

ATTACHMENT 1
RESOLUTION 22-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS, APPROVING ANNEXATION TO LANDSCAPING MAINTENANCE DISTRICT NO. 1 OF THE CITY

OF CLOVIS
WHEREAS, City of Clovis Landscape Maintenance District No. 1 ("District") was formed by Resolution No. 85-78, adopted July 15, 1985, pursuant to Part 2 of Division 15 of the Streets and Highways Code (Landscape and Lighting Act of 1972), herein the "Act"; and
WHEREAS, all of the owners of property proposed to be annexed to the District consisting of proposed Tract No. 6284, as described in Attachment "A" attached hereto and incorporated herein by reference, have consented to said annexation and such annexation may be ordered without notice and hearing or filing of engineer's report, or both.

NOW, THEREFORE, IT IS RESOLVED AND ORDERED, as follows:

1. That the public interest and convenience require that certain property described in Attachment "A" attached hereto and by reference incorporated herein be annexed into Landscape Maintenance Distric t No. 1 of the City of Clovis for the maintenance and servicing of landscaping facilities.

2. The City Clerk shall receive and file the maps showing the boundaries of the areas annexed as set forth in Attachment "A" which boundaries shall be used for assessment proceedings until and unless a change of organization is approved pursuant to the Act.
* * * * *
The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on March 7, 2022, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:

Mayor City Clerk
65 AGENDA ITEM NO. 8.

ATTACHMENT “A”

Legal Description

Lots 1 through 74, inclusive, of Tract Map 6284 recorded in Volume ______ of Plats at Pages ______ through ______, Fresno County Records.
66 AGENDA ITEM NO. 8.

TO: Mayor and City Council
FROM: Planning and Development Services
DATE: March 7, 2022
SUBJECT: Planning and Development Services – Approval – Reduction of Performance and Payment Securities for Final Map for Tract 5789A, located on the northwest area Peach Avenue and West Stuart Avenue (Peach Avenue LP – Gary Mason).

ATTACHMENTS: 1. Vicinity Map

2. Copy of Final Map

CONFLICT OF INTEREST
None.

RECOMMENDATION
For the City Council to:

1. Authorize the immediate reduction of the Performance Security from $ 736,000.00 to $186,000.00, said reduced amount being 125% of the estimated value of the improvements remaining to be completed.

2. Authorize the reduction of the Labor and Materials Security from $ 368,000.00 to $93,000.00, said reduced amount being 75% of the estimated value of the improvements remaining to be completed.

EXECUTIVE SUMMARY
The developer, Peach Avenue LP – Gary Mason, has requested a bond reduction of the Performance Security and the Labor and Materials Security for Tract 5789A. The amount of the reduction is equal to the cost associated with the public improvements that have been constructed or installed to date, in accordance with the approved pla ns and specifications.

These improvements, public and private, are generally Lots 1 through 9 of the project and their associated frontage improvements. The work within Lots 10 and 11, as well as their frontages, have not been completed to date.

When all work is completed, the project will be submitted to the Council for acceptance. This request for a bond reduction complies with the Policy and Procedures for Partial Acceptance of 67 AGENDA ITEM NO. 9.

Subdivision Public Improvements and Bond Reductions approved by the Council on December 3, 2007.

City Inspection staff, including those of the various affected departments, has certified that all the public improvements to be removed from the security have been constructed or installed in accordance with the approved plans, specifications, and standards, and to the satisfaction of the City Engineer. Although these items have been removed from the bonds, the developer will still maintain these improvements.

FISCAL IMPACT
None.

REASON FOR RECOMMENDATION
All the public improvements to be removed from the security have been constructed or installed in accordance with the approved plans, specifications, and standards, and to the satisfaction of the City Engineer. This request for a bond reduction complies with the Policy and Pr ocedures for Partial Acceptance of Subdivision Public Improvements and Bond Reductions approved by the Council on December 3, 2007.

ACTIONS FOLLOWING APPROVAL
Work with the developer and developer’s sureties to reduce the Performance and the Labor and Materials security.

Prepared by: Gene G. Abella, Civil Engineer

Reviewed by: City Manager __AH___

68 AGENDA ITEM NO. 9.
69 AGENDA ITEM NO. 9.
70 AGENDA ITEM NO. 9.
71 AGENDA ITEM NO. 9.

TO: Mayor and City Council
FROM: Planning & Development Services
DATE: March 7, 2022
SUBJECT: Planning & Development Services – Approval – Authorize the City Manager to approve placement of a full time City Surveyor at Step 4 of the salary range.

ATTACHMENTS: None

CONFLICT OF INTEREST
None.

RECOMMENDATION
For the City Council to authorize the City Manager to approve the placement of a candidate on the active eligible list for full time City Surveyor at Step 4 of the salary range.

EXECUTIVE SUMMARY
Planning & Development Services Department has selected a preferred candidate to fill a vacant full-time City Surveyor position. The candidate is currently serving as a Professional Land Surveyor with a local municipality for the past 11 years. The candidate is currently at the highest step for their position at their current place of employment. Bringing the candidate on at Step 4 will still result in a slight pay decrease. Initial appointment above Step 3 of the salary range requires Council authorization.

BACKGROUND
A recruitment process was conducted so that the Department would be able to fill the vacancy for the new City Surveyor position. The Department needs to recruit a City Surveyor as part of succession planning for the Licensed Surveyor role re quired for the operation. This position is significant for the continued operation of the Department and has a high degree of qualifications.

Due to the limited availability of candidates in this role, this position is very difficult to recruit. The Department has selected a candidate from the eligibility list and would like to start the employee at Step 4 of the City Surveyor salary range. The candidate is currently employed as a Professional Land Surveyor with a local municipality for the past for 11 years where they are at the highest step of th e salary range for their position. Accepting this position at Step 4 will still result in a slight pay decrease for the candidate.

72 AGENDA ITEM NO. 10.

FISCAL IMPACT
The position is currently budgeted at a level sufficient to fund this request.

REASON FOR RECOMMENDATION
Pursuant to Clovis Municipal Code and Personnel Regulations, the City Council must authorize the City Manager to make personnel appointments in the competitive service at salary levels beyond Step 3 of the salary ra nge. The recommended candidate is highly qualified and would be a significant asset to the City’s workforce.

ACTIONS FOLLOWING APPROVAL
A personnel action form will be submitted to Personnel and the City Manager for approval.

Prepared by: Ryan Nelson, PDS Administrative Manager

Reviewed by: City Manager _AH_

73 AGENDA ITEM NO. 10.

TO: Mayor and City Council
FROM: Public Utilities Department
DATE: March 7, 2022
SUBJECT: Public Utilities - Approval – Res. 2 2-___, A Resolution Initiating Proceedings for the Annual Levy of Assessments for Landscape Maintenance District No. 1.

ATTACHMENTS: 1. Resolution

CONFLICT OF INTEREST
None

RECOMMENDATION
For the City Council to approve Resolution No. 22-_____, which will initiate proceedings for the annual levy of assessments for Landscape Maintenance District No. 1.

EXECUTIVE SUMMARY
This resolution is to initiate proceedings for the annual levy of assessments for the Landscape Maintenance District (LMD) No. 1 as required by the Landscape and Lighting Act of 1972. The assessments are necessary to fund the operations and maintenance of the benefit areas within the LMD. The Engineer’s Report detailing the assessments will be compiled by the City’s Consultant, Francisco and Associates, Inc. Upon City Council approval of the Engineer’s Report on June 6, 2022, the assessments will be sent to Fresno County to be included in the property tax rolls.

BACKGROUND
On July 15, 1985, Council adopted Resolution No. 85 -78 forming the City of Clovis Landscape Maintenance District No. 1. The purpose of the District is to fund the operation and maintenance of landscaped areas and interior parks benefiting development throughout the City.

The yearly assessments established for all properties within the District provide fu nding for the City's cost for operation, maintenance, related services, and incidental expenses. The required operation and maintenance includes mowing, edging, fertilizing, weed control, irrigation system, pruning, plant replacement, lighting, and a depr eciation fund to periodically replace landscape and park structures and associated equipment.

74 AGENDA ITEM NO. 11.

The Landscape and Lighting Act of 1972 (Section 22622) requires that a resolution be adopted which generally describes new improvements or substantial changes to existing improvements and orders that a report be prepared and filed regarding the assessment district. A listing of new improvements or substantial changes to the existing improvements is attached to the resolution as Exhibit "1". Adoption of this resolution satisfies the requirement.

The final step in the process is to notify the Fresno County Auditor -Controller of the approved assessments so that they may be included on the property tax rolls. The tentative schedule for notification to the County is June 28, 2022.

FISCAL IMPACT
None

REASON FOR RECOMMENDATION
This resolution is required by the Landscaping and Lighting Act of 1972 in order to levy assessments to fund the cost of operations and maintenance for benefit areas within LMD No.

1. ACTIONS FOLLOWING APPROVAL

1. The Engineer’s Report will be prepared.

2. Staff will present the final assessment costs for consideration by the City Council at the public hearing.

Prepared by: Eric Aller, Parks Manager

Reviewed by: City Manager _AH__

75 AGENDA ITEM NO. 11.

RESOLUTION 22-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLOVIS INITIATING

PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS FOR LANDSCAPE MAINTENANCE DISTRICT NO. 1 OF THE CITY OF CLOVIS

APPROVING by the Council of the City of Clovis, County of Fresno, California, that:

WHEREAS, the Council has approved six (6) annexations with new improvements to the Landscape Maintenance District No. 1 of the City of Clovis (herein LMD No. 1) since the Engineer’s Report dated June 7, 2021; and

WHEREAS, proceedings for the annual assessments for LMD No. 1 for the fiscal year 2022-23 need to be initiated.

NOW, THEREFORE, BE IT RESOLVED, that the City of Clovis is hereby found, determined, and ordered as follows:

1. The Council proposes to undertake proceedings for the levy of the annual assessments for LMD No. 1 under part 2 of Division 15 of the Streets and Highways Code of the State of California (Section 22500 et seq.) generally known as the L andscaping and Lighting Act of 1972 (herein the “Act”).

2. The new improvements being added by the above referred annexations to the existing maintained improvements are set forth in Attachment A attached hereto and by reference incorporated herein.

3. The Public Utilities Director shall have a report prepared and filed in accordance with Article 4 (commencing with Section 22565) of the Act.

* * * * *

The foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Clovis held on March 7, 2022, by the following vote, to wit.

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:

______________________________ ______________________________ Mayor City Clerk
Attachment 1 76
AGENDA ITEM NO. 11.

Attachment A

THE NEW IMPROVEMENTS FOR THE LANDSCAPE MAINTENANCE
DISTRICT NO. 1 ARE DESCRIBED AS FOLLOWS:

The proposed landscaping, irrigation, and lighting systems as described in the covenants appropriate to each of the following properties and other tracts to be annexed to the LMD prior to June 30, 2022.

Tract 6123
Tract 6268
Tract 6304
Tract 6329
Tract 6301
Tract 6348

77 AGENDA ITEM NO. 11.

TO: Mayor and City Council
FROM: Public Utilities Department
DATE: March 7, 2022
SUBJECT: Consider Introduction - Ord. 22-___, An Ordinance Adding Chapter

6.3.2, Title 6, of the Clovis Municipal Code , Pertaining to Mandatory Organics Waste Disposal Reduction.

Staff: Ivette Rodriguez, Solid Waste Manager
Recommendation: Approve
ATTACHMENTS: 1. Ord. 22-__, an Ordinance adding Chapter 6.3.2, Title 6, of the Clovis Municipal Code

CONFLICT OF INTEREST
None

RECOMMENDATION
For the City Council to approve introduction of Ord. 22-__, an Ordinance adding Chapter 6.3.2, Title 6, of the Clovis Municipal Code , pertaining to Mandatory Organics Disposal Waste Reduction.

EXECUTIVE SUMMARY
Senate Bill No. 1383 (SB 1383) requires the City of Clovis to adopt an ordinance (see Attachment 1) in order to address disposal reduction of organic waste (green waste, food waste, and other organic materials such as soiled paper) . The M andatory Organic Waste Disposal Reduction Ordinance requires residents and businesses to properly sort their recyclables, organics (including food scraps), and trash. The proposed ordinance requires building and complex managers to provide adequate recycl ing and organics collection services to their tenants. The ordinance includes language for the City to issue penalties and fines against noncompliant entities for disposal contamination and for inadequate service as mandated and required by SB 1383. In addi tion, SB 1383 requirements include: implementation of an edible food recovery program that recovers edible food from the waste stream; conducting outreach and education to all affected parties including generators, haulers, facilities, and edible food reco very organizations; procurement of recycled organic waste products like compost , mulch, and renewable gas; inspection and annual site visits for enforcement of noncompliant residents and 78 AGENDA ITEM NO. 12.
businesses; and maintenance of accurate and timely records of SB 1383 compliance for annual reporting.

The City of Clovis has been achieving significant material recovery through its single-family residential three -cart collection system and commercial recycling and organics collecti on programs. Additional compliance is necessary with SB 1383 to increase organics recycling. The City will be providing toters for the collection of organics to HOA communities that currently do not have organics collection service. In addition, the City will implement new organics collection services within each multi-family community.

Outreach and education will be conducted in full force for implementing new programs required under SB 1383. The City has already begun to provide educational material to the community and will continue to provide additional and ongoing education through flyers, mailers, social medial, and the City website. It is staff ’s intent to provide significant public outreach and education to support a successful program that will improve the quality of life and our environment, and to minimize potential enforcement actions.

BACKGROUND
Senate Bill No. 1383 (SB 1383) was signed into law on September 19, 2016, with the goal to reduce organic waste disposal by 75% and increase edible food recovery by 20% by 2025. SB 1383 is the most significant waste reduction mandate to be adopted in the State of California in the last 30 years and requires all jurisdictions to implement a mandatory organics recycling ordinance. This legislation requires all businesses, residents, and multi-family dwellings to have access to recycling programs that capture food scraps and landscaping waste, among other organics waste materials.

FISCAL IMPACT
There is no significant fiscal impact to the City associated with the adoption of the proposed ordinance.

REASON FOR RECOMMENDATION
Adopting the Mandatory Organics Waste Disposal Reduction Ordinance will place the City in compliance of SB 1383, as it is a requirement of the law. The new ordinance will provide support to the City to implement new programs outlining the requirements of SB 1383 , in addition to compliance of all sections of the law.

ACTIONS FOLLOWING APPROVAL
Staff will present the ordinan ce for a second reading and adoption during the March 14, 2022 Council meeting. The Ordinance will take effect 30 days thereafter.

Prepared by: Ivette Rodriguez, Solid Waste Manager

Reviewed by: City Manager __AH___
79 AGENDA ITEM NO. 12.

1 ORDINANCE 22-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CLOVIS ADDING CHAPTER 6.3.2 OF TITLE 6 OF THE CLOVIS MUNICIPAL CODE RELATING TO

MANDATORY ORGANIC WASTE DISPOSAL REDUCTION REGULATIONS

The City Council of the City of Clovis does ordain as follows:

Section 1. Chapter 6.3.2 of Title 6 of the Clovis Municipal Code is hereby added to read as follows:

Chapter 6.3.2

MANDATORY ORGANIC WASTE DISPOSAL REDUCTION REGULATIONS
Sections:

6.3.2.01 Purpose and Findings.

6.3.2.02 Definitions.

6.3.2.03 Requirements for Residential Generators.

6.3.2.04 Requirement for Commercial Generators.

6.3.2.05 Waivers for Generators.

6.3.2.06 Requirement for Commercial Edible Food Generators.

6.3.2.07 Requirement for Edible Food Recovery organizations.

6.3.2.08 Requirements for haulers and facility operators.

6.3.2.09 Self-haulers requirements.

6.3.2.10 Procurement requirements for City departments, direct services providers, and vendors.

6.3.2.11 Inspection and investigation by City.

6.3.2.12 Enforcement.

6.3.2.13 severability.

6.3.2.01 Purpose and Findings.

The City of Clovis finds and declares:
(a) State recycling law, Assembly Bill 939 of 1989, the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq., as amended, supplemented, superseded, and replaced from time to time), requires cities and counties to reduce, reuse, and recycle (including composting) Solid Waste generated in their cities to the maximum extent feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment.
(b) State recycling law, Assembly Bill 341 of 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, as amended, supplemented, superseded and replaced from time to time), places Attachment 1 80
AGENDA ITEM NO. 12.

2 requirements on businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste to arrange for recycling services and requires City to implement a Mandatory Commercial Recycling program.
(c) State organics recycling law, Assembly Bill 1826 of 2014 , which added Chapter 12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time), requires businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste, Recycling, and Organic Waste per week to arrange for recycling services for that waste; requires City to implement a recycling program to divert Organic Waste from businesses subject to the law ; and requires City to implement a Mandatory Commercial Organics Recycling program.
(d) SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires CalRecycle to develop regulations to reduce organics in landfills as a source of methane. The regulations place requirements on multiple entities including City, residential households, Commercial Businesses and business owners, Commercial Edible Food Generators, haulers, Self -Haulers, Food Recovery Organizations, and Food Recovery Services to support achievement of Statewide Organic Waste disposal reduction targets. (e) SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires City to adopt and enforce an ordinance or enforceable mechanism to implement relevant provisions of SB 1383 Regulations. This chapter will also help reduce food insecurity by requiring Commercial Edible Food Generators to arrange to have the maximum amount of their Edible Food, that would otherwise be disposed, be recovered for human consumption.

6.3.2.02 Definitions.
(a) “Act” means the California Integrated Waste Management Act of 1989, Public Resources Code section 40000 and following as it may be amended, including but not limited to, the jobs and Recycling Act of 2011 (AB 341), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383), and as implemented by the regulations of CalRecycle.

(b) “Blue Container” has the same meaning as in 14 CCR Section 18982.2(a)(5) and shall be used for the purpose of storage and collection of Source Separated Recyclable Materials or Source Separated Blue Container Organic Waste.

(c) “CalRecycle” means California Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations on City.

(d) “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this ordinance are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR” refers to Title 14 of CCR).

(e) “City Enforcement Official” means the city manager, county administrative official, chief operating officer, executive director, or other executive in charge or their authorized Designee(s) who is/are partially or whole responsible for enforcing the ordinance. 81 AGENDA ITEM NO. 12.

3 (f) “Commercial Business” means firm, retail, professional, office, wholesale and industrial facilities, and other commercial enterprises offering goods or services to the public whether for-profit or nonprofit, and multi-family residential property with five (5) or more units located within City limits.

(g) “Commercial Edible Food Generator” includes Tier One or a Tier Two Commercial Edible Food Generator as defined in 14 CCR Section 1892(a)(73) and (a)(74). For the purpose of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators pursuant to 14 CCR Section 18982(a)(7).

(h) “Commercial Generator” means a commercial business which generates garbage, organics, or recyclable materials as a result of its business, commercial or property activity. Commercial generator also means any multi-family residential property of five (5) or more units. Commercial generator may also include tenants, property managers for facilities with leased space, employees and contractors of commercial generator.

Commercial generators also includes the City, it’s facilities, its non-residential properties and special events, its sponsors or co-sponsors, as well as mobile food vendors and the responsible party for any special events.

(i) “Compliance Review” means a review of records by a City to determine compliance with this chapter.

(j) “Community Composting” means any activity that compost green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed one- hundred (100) cubic yards and seven-hundred-fifty (750) square feet as specified in 14 CCR Section 17855(a)(4); or, as otherwise defined by 14 CCR Section 18982(a)(8).

(k) “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4).

(l) “Container” means any metal bin or cart used for collection of garbage, recyclable, and organic materials.

(m) “Container Contamination” or “Contaminated Container” means a container, regardless of color, that contains Prohibited Container Contaminants, or as otherwise defined in 14 CCR Section 18982(a)(55).

(n) “C&D” means construction and demolition debris as regulated in chapter 6.3.1 of the City’s Municipal Code..

(o) “Designated Source Separated Organic Waste Facility” has the same meaning as in 14 CCR Section 18982(a)(14.5), and is a Solid Waste facility that accepts a Source Separated Organic Waste collection stream as defined in 14 CCR Section 17402(a)(26.6) and complies with one of the following:
(1) The facility is a “transfer/processor,” as defined in 14 CCR Section 18815.2(a)(62), that is in compliance with the reporting requirements of 14 CCR Section 82 AGENDA ITEM NO. 12.

4 18815.5(d), and meets or exceeds an annual average Source Separated organic content Recovery rate of fifty (50) percent between January 1, 2022 and December 31, 2024 and seventy-five (75) percent on and after January 1, 2025 as calculated pursuant to 14 CCR Section 18815.5(f) for Organic Waste received from the Source Separated Organic Waste collection stream.
(A) If a transfer/processor has an annual average Source Separated organi c content Recovery rate lower than the rate required in Paragraph 1 of this definition for two (2) consecutive reporting periods, or three (3) reporting periods within three (3) years, the facility shall not qualify as a “Designated Source Separated Organic Waste Facility”.
(2) The facility is a “composting operation” or “composting facility” as defined in 14 CCR Section 18815.2(a)(13), that pursuant to the reports submitted under 14 CCR Section 18815.7 demonstrates that the percent of the material removed for landfill disposal that is Organic Waste is less than the percent specified in 14 CCR Section 17409.5.8(c)(2) or 17409.5.8(c)(3), whichever is applicable, and, if applicable, complies with the digestate handling requirements specified in 14 CCR Section 17896.5.

(p) “Designee” means an entity that City contracts with or otherwise arranges to carry out any of the City’s responsibilities of this chapter as authorized in 14 CCR Section 18981.2. A Designee may be a government entity, a hauler, a private entity, or any combination thereof.
(q) “Edible Food” means food intended for human consumption, or as otherwise defined in 14 CCR Section 18982(a)(18). For the purposes of this chapter or as otherwise defined in 14 CCR Section 18982(a)(18), “Edible Food” is not Solid Waste if it is recovered and not discarded. Nothing in this chapter or in 14 CCR, Division 7, Chapter 12 requires or authorizes the Recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code.
(r) “Enforcement Action" means an action of the City to address non-compliance with this chapter including, but not limited to, issuing warning notices, administrative citations, fines, penalties, or any other available remedies.
(s) “Excluded Waste” means hazardous substance , hazardous waste, infectious waste, designated waste , volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facili ty operator(s), which receive materials from the City and its generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in City’s, or its Designee’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose City, or its Designee, to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single -Family or Multi- Family Solid Waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code . Excluded Waste does not 83 AGENDA ITEM NO. 12.

5 include used motor oil and filters, household batteries, universal wastes, and/or latex paint when such materials are defined as allowable materials for collection through the City’s collection programs and the generator or customer has properly placed the materials for collection pursuant to instructions provided by City or its Designee for collection services. (t) “Food Distributor” means a company that distributes food to entities includ ing, but not limited to, Supermarkets and Grocery Stores, or as otherwise defined in 14 CCR Section 18982(a)(22).
(u) “Food Recovery” means actions to collect and distribute food for human consumption that otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
(1) A food bank as defined in Section 113783 of the Health and Safety Code; (2) A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and,
(3) A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.
(v) “Food Waste” means food scraps and trimmings and other putrescible waste that result from food production, preparation, cooking, storage, consumption or handling. Food waste includes but is not limited to cooked meat, fish, dairy waste, fruit and vegetable waste and grain waste.

(w) “Franchise Hauler” means a hauler holding a franchise, contract, license or permit issued by the city which authorizes the exclusive or non-exclusive right to provide solid waste, organics and recycling collection services within all or part of the city limits.

(x) “Garbage” means all non-recyclables and non-organic waste generated by normal day to day activities. Garbage must be generated by and at the service location or unit wherein the garbage is collected. Garbage does not include recyclables, organics waste, construction and demolition debris, bulky items, e-waste, universal waste, and hazardous waste.

(y) “Generator” means any commercial generator or residential generator of solid waste.

(z) “Gray Container” has the same meaning as in 14 CCR Section 18982.2(a)(28) and shall be used for the purpose of storage and collection.

(aa) “Green Waste Container” has the same meaning as in 14 CCR Section 18982.2(a)(29) and shall be used for the purpose of storage and collection of Source Separated Green Container Organic Waste.

(bb) “Hazardous waste” means any material which is defined as hazardous waste under California or United States law or any regulations promulgated pursuant to such law, such as local, state, or federal.

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6 (cc) “High Diversion Organic Waste Processing Facility” means a facility that is in compliance with the reporting requirements of 14 CCR section 18815.5(d) and meets or exceeds an annual average Mixed Waste organic content Recovery rate of fifty (50) percent between January 1, 2022 and December 31, 2024, and seventy-five (75) percent after January 1, 2025, as calculated pursuant to 14 CCR section 18815.5(e) for Organic Waste received from the “Mixed waste organic collection stream” as defined in 14 CCR section 17402(a)(11.5); or, as otherwise defined in 14 CCR section 18982(a)(33).

(dd) “Household hazardous waste” means dry cell household batteries; used motor oil, used oil filters, cooking oil, compact fluorescent light bulbs; cleaning products, pesticides, herbicides, insecticides, painting supplies, automotive products, solvents, adhesives, auto batteries, and universal waste.
(ee) “Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than two-thousand (2,000) individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event.

If the definition in 14 CCR section 18982(a)(38) differs from this definition, the definition in 14 CCR section 18982(a)(38) shall apply to this chapter. (ff) “Large Venue” means a permanent venue facility that annually seats or serves an average of more than two-thousand (2,000) individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facil ity. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If t he definition in 14 CCR section 18982 (a)(39) differs from this definition, the definition in 14 CCR section 18982(a)(39) shall apply to this chapter.
(gg) “Multi-Family Residential Dwelling” or “Multi-Family” means of, from, or pertaining to residential premises with five (5) or more dwelling units. Multi-Family premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses.

(hh) “Non-Organic Recyclables” means non-putrescible and non-hazardous recyclable wastes including but not limited to bottles, cans, metals, plastics and glass, or as otherwise defined in 14 CCR section 18982(a)(43).

(ii) “Notice of Violation” or “(NOV)” means a notice that a violation has occurred that includes a compliance date to avoid any further enforcement action by the City authorized in this chapter.
(jj) “Organic Waste” means Solid Wastes containing material originated from living organisms and their metabolic waste products, including but not limited to food scraps, trimmings from food preparation, soiled paper products such as paper towels, plant debris, grass 85 AGENDA ITEM NO. 12.

7 clippings, leaves, pruning, weeds, brush, and holiday natural trees or otherwise defined in 14 CCR Section 18982(a)(48).
(kk) “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR section 18982(a)(51).
(ll) “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR section 18982(a)(54). (mm) “Prohibited Container Contaminants” means the following: (i) discarded materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for the City’s Blue Container; (ii) discarded materials placed in the Green Container that are not identified as acceptable Source Separated Green Container Organic Waste for the City’s Green Container; (iii) discarded materials placed in the Gray Container that are acceptable Source Separated Recyclable Materials and/or Source Separated Green Container Organic Wastes to be placed in City’s Green Container and/or Blue Container; and, (iv) Excluded Waste placed in any container. (nn) “Recovered Organic Wast e” means products made from California, landfill -diverted recovered Organic Waste processed in a permitted or otherwise authorized facility, or as otherwise defined in 14 CCR Section 18982(a)(60).
(oo) “Recycled-Content Paper” means Paper Products and Printing and Writing Paper that consists of at least 30 percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).
(pp) “Recycling” means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise become solid waste, and returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. (qq) “Residential Generator” means of, from, or pertaining to any residential premises with fewer than five (5) units.
(rr) “SB 1383 Regulations” or “SB 1383 Regulatory” means or refers to, for the purposes of this chapter, Senate Bill 1383 (SB 1383), the Short -Lived Climate Pollutants: Or ganic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter 12 and amended portions of regulations of 14 CCR and 27 CCR.
(ss) “Self-Hauler” means a person, who hauls Solid Waste, Organic Waste or recycl able material he or she has generated to another person. Self -hauler also includes a person who back-hauls waste, or as otherwise defined in 14 CCR Section 18982 (a)(66). Back- haul means generating and transporting Organic Waste to a destination owned and operated by the generator using the generator’s own employees and equipment, or as otherwise defined in 14 CCR Section(a)(66)(A).
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8 (tt) “Solid waste” means garbage, recyclable materials, organic waste, construction and demolition debris, bulky items, e-waste, and universal waste. (uu) “Source Separated” means materials, including commingled recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or processing those materials for recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products, which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the chapter, Source Separated shall include separation of materials by the generator, property owner, property owner’s employee, property manager, or property manager’s employee into different containers for the purpose of collection such that Source Separated materials are separated from the Gray Container, Waste/Mixed Waste or other Solid Waste for the purposes of collection and processing.

6.3.2.03 Requirements for Residential Generators.

Residential Generators shall comply with the following requirements:
(a) Subscribe to City’s collection services and comply with collection requirements of those service as described below in Section 6.3.2.03(b). City shall have the right to review the number and size o f a generator’s containers to evaluate adequacy of capacity provided for each type of collection service for proper separation of materials and containment of materials; and Residential generators may be required to adjust service level or containers for collection services as requested by the City. Generators may additionally manage their Organic Waste by preventing or reducing their Organic Waste, managing Organic Waste on site, and/or using a Community Composting site pursuant to 14 CCR Section 18984.9(c).
(b) Shall participate in the City’s Organic Waste collection service(s) by placing designated materials in designated containers as described below, and shall not place Prohibited Container Contaminants in collection containers.
(1) Generator shall place Source Separated Green Container Organic Waste, including food waste , in the Green Container; Source Separated Recyclable Materials in the Blue Container; and Gray Container Waste in the Gray Container.

Generators shall not place materials designated for t he Gray Container into the Green Container or Blue Container.

6.3.2.04 Requirements for Commercial Generators.

Commercial Generators shall:
(a) Subscribe to City’s collection services and comply with collection requirements of those services as described below in Section 6.3.2.04(b). City shall have the right to review the number and size of a generator’s containers and frequency of collection to evaluate adequacy of capacity provided for each type of collection service for proper separation of materials and containment of materials; and Commercial Businesses shall adjust their service level for their collection services as requested by the City. 87 AGENDA ITEM NO. 12.

9 (b) Participate in the City’s Organic Waste collection service(s) by placing designated materials in designated containers as follows:

Generator shall place Source Separated Organics Waste, including Food Waste, in the Green Container ; Source Separated Recyclable Materials in the Blue Container; and Trash in the Gray Container.
(c) Supply and allow access to adequate number, size and location of collection containers with sufficient labels or colors for employees, contractors, tenants, and customers, consistent with City’s Blue Container , Green Container and Gray Conta iner collection service or, if self -hauling, per the Commercial Businesses’ instructions to support its compliance with its self-haul program, in accordance with Section 6.3.2.09 below. (d) Provide or arrange access for City and its agent to their properties during all inspections conducted in accordance with 6.3.2.11 of this chapter to confirm compliance with requirements ordinance.
(e) Accommodate and cooperate with City’s remote monitoring program for inspection of the contents of containers for Prohibited Container Contaminants, which may be implemented at a later date, to evaluate generator’s compliance with Section 6.3.2.04(b). (f) Commercial Businesses that are Tier One or Tier Two Commercial Edible Food Generators shall comply with Food Recovery requirements, pursuant to Section 6.3.2.06.

6.3.2.05 Waivers for Generators.
(a) De Minimis Waivers . The City may grant a waiver to a Commercial Business from compliance with this chapter if the Commercial Business generates less than the amount of Organic Waste material as described in Section 6.3.2.05(a)(2) below. A Commercial Business requesting a de minimis waiver must:
(1) Submit an application to the Cit y specifying the services or requirements requesting a waiver from and provide documentation as noted in Section

6.3.2.05(a)(2) below.
(2) Provide documentation that either:
(A) The Commercial Business’ total Solid Waste collection service is two cubic yards or more per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than twenty (20) gallons per week per applicable container of the business’ total waste; or (B) The Commercial Business’ total Solid Waste collection service is less than two cubic yards per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than ten ( 10) gallons per week per applicable container of the business’ total waste. (3) Notify City if circumstances change such that the Commercial Business’s Organic Waste exceeds the threshold required for a waiver, in which case the waiver will be rescinded.
88 AGENDA ITEM NO. 12.

10 (4) Provide written verification of continuing eligibility for a de minimis waiver every five (5) years if City has approved a de minimis waiver. (b) Physical Space Waivers: City may waive a Commercial generator’s or Residential generator’s obligations to comply with all or some recyclable materials and/or Organic Waste collection service requirements if the City has evidence from its own staff, a hauler, licensed architect, or licensed engineer demonstrating that the premises lacks adequate space for the collection contai ners required for compliance with the Organic Waste collection requirements of Section 6.3.2.04 above.
(c) A Commercial generator or Residential generator may request a physical space waiver through the following process:
(1) Submit an application form specifying the type(s) of collection services for which they are requesting a compliance waiver.
(2) Provide documentation that the premises lacks adequate space for Blue and or Green Containers, including documentation from franchise hauler, licensed architect, or licensed engineer.
(3) Provide written verification to City of continuing eligibility for a physical space waiver every five (5) years if City has approved a physical space waiver.

6.3.2.06 Requirements for Commercial Edible Food Generators. (a) Tier One Commercial Edible Food Generators must comply with the requirements of this Section commencing on January 1, 2022, and Tier Two Commercial Edible Food Generators must comply commencing January 1, 2024, in accordance with 14 CCR Section 18991.3.
(b) Large Venue or Large Event operators not providing food services, but allowing for food to be provided by others, shall require Food Facilities, as defined in section 113789 of the Health and Safety Code, operating at the Large Venue or Large Event to comply with the requirements of this Section, commencing January 1, 2024. (c) Commercial Edible Food Generators shall comply with the following requirements:
(1) Arrange to recover the maximum amount of Edible Food that would otherwise be disposed.
(2) Contract with or enter into a written agreement with Food Recovery organizations or Food Recovery services for: (i) the collection of Edible Food for Food Recovery; or, (ii) acceptance of the Edible Food that the Commercial Edible Food Generator self-hauls to the Food Recovery organization for Food Recovery. (3) Shall not intentionally spoil Edible Food that is capable of being recovered by a Food Recovery organization or a Food Recovery service.
(4) Allow City’s designated enforcement entity or Designee to access the premises and review records pursuant to 14 CCR Section 18991.4.
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11 (5) Keep records that include the following information, or as otherwise specified in 14 CCR Section 18991.4:
(A) A list of each Food Recovery service or organization that collects or receives its Edible Food pursuant to a contract or written agreement established under 14 CCR Section 18991.3(b).
(B) A copy of all contracts or written agreements established under 14 CCR Section 18991.3(b).
(C) A record of the following information f or each of those Food Recovery services or Food Recovery organizations:
(i) The name, address and contact information of the Food Recovery service or Food Recovery organization.
(ii) The types of food that will be collected by or self-hauled to the Food Recovery service or Food Recovery organization.
(iii) The established frequency that food will be collected or self-hauled. (iv) The quantity of food, measured in pounds recovered per m onth, collected or self -hauled to a Food Recovery service or Food Recovery organization for Food Recovery.
(c) Nothing in this chapter shall be construed to limit or conflict with the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act, or share table and school food donation guidance pursuant to Senate Bill 557 of 2017 (approved by the Governor of the State of California on September 25, 2017, which added Article 13 [commencing with Section 49580] to Chapter 9 of Part 27 of Division 4 of Title 2 of the Education Code, and to amend Section 114079 of the Health and Safety Code, relating to food safety, as amended, supplemented, superseded and replaced from time to time).

6.3.2.07 Requirements for Edible Food Recovery organizations. (a) Food Recovery services collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(1):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the service collects Edible Food.
(2) The quantity in pounds of Edible Food collected fr om each Commercial Edible Food Generator per month.
(3) The quantity in pounds of Edible Food transported to each Food Recovery organization per month.
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12 (4) The name, address, and contact information for each Food Recovery organization that the Food Recovery service transports Edible Food to for Food Recovery. (b) Food Recovery organizations collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(2):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the organization receives Edible Food. (2) The quantity in pou nds of Edible Food received from each Commercial Edible Food Generator per month.
(3) The name, address, and contact information for each Food Recovery service that the organization receives Edible Food from for Food Recovery. (c) Food Recovery Capacity Pl anning. To support Edible Food Recovery capacity planning assessments or other studies conducted by the City or its Designee, Food Recovery services and Food Recovery organizations operating in the City shall provide information and consultation to the City, upon request, regarding existing, or proposed new or expanded, Food Recovery capacity that could be accessed by the City and its Commercial Edible Food Generators. A Food Recovery service or Food Recovery organization contacted by the City shall respond to such request for information within sixty (60) days.

6.3.2.08 Requirements for haulers and facility operators. (a) Requirements for haulers:
(1) Exclusive Franchise Hauler, permitted, and licensed haulers providing residential, commercial, or industrial Organic Waste collection services to generators within the City limits shall meet the following requirements and standards as a condition of approval of a contract, agreement, or other authorization with the City to collect Organic Waste:
(A) Through written notice to the City identifying the facilities to which they will transport Organic Waste including facilities for Source Separated Recyclable Materials and Source separated Green Container Organic Waste.
(B) Transport Source Separated Recyclable Materials and Source Separated Green Container Organic Waste to a facility, operation, activity, or property that recovers Organic Waste to a Community Composting site or lawfully transporting C&D in a manner that complies with 14 CCR Section 18989.1, this Section, and City’s C&D ordinance.
(C) Obtain approval from the City to haul Organic Waste, unless it is transporting Source Separated Organic Waste to a Community Composting site lawfully transporting C&D in a manner that complies with 12 CCR Section 18989.1, this Section, and City’s C&D ordinance. 91 AGENDA ITEM NO. 12.

13 (2) Exclusive Franchise Haulers and permitted haulers authorized to collect Organic Waste shall comply education, equipment, signage, container labeling, container color, contamination monitoring, reporting, and other requir ements contained within its franchise agreement, permit, license, or agreement entered into with City. (b) Requirements for facility operators and Community Composting operations:
(1) Owners of facilities, operations, and activities that recover Organic Waste, including, but not limited to, Compost facilities, in vessel digestion facilities, and publicly-owned treatment works shall, upon City request, provide information regarding avail able and potential new or expanded capacity at their facili ties, operations, and activities, including information about throughput and permitted capacity necessary for planning purposes. Entities contacted by the City shall respond within 60 days.
(2) Community Composting operators, upon City request, shall provide information to the City to support Organic Waste capacity planning including, but not limited to, an estimated of the amount of Organic Waste anticipated to be handled at the Community Composting o peration. Entities contacted by the City shall respond within 60 days.

6.3.2.09 Self-Hauler requirements.
(a) Self-Haulers shall source separate all recyclable materials and Organic Waste (materials that City otherwise requires generators to separate for collection in the City’s organics and recycling collection program) generated on-site from Solid Waste in a manner consistent with 14 CCR Sections 18984.1 and 18984.2, or shall haul Organic Waste to a High Diversion Organic Waste Processing Facility as specified in 14 CCR Section 18984.3. (b) Self-Haulers shall haul their Source Separated Recyclable Materials to a facility that recovers those materials; and haul their Source Separated Green Container Organic Waste to a Solid Waste facility, operation, activity, or property that processes or recovers Source Separated Organic Waste. Alternatively, Self-Haulers may haul Organic Waste to a High Diversion Organic Waste Processing Facility.
(c) Self-Haulers that are Commercial Businesses shall keep a record of the amount of Organic Waste delivered to each Solid Waste facility, operation, activity, or property that processes or recovers Organic Waste; this record shall be subject to inspection by the City. The records shall include the following information:
(1) Delivery receipts and weight tickets from the entity accepting the waste. (2) The amount of material in cubic yards or tons transported by the generator to each entity.
(3) If the material is transported to an entity that does not have scales on -site, or employs scales incapable of weighing the Self -Hauler’s vehicle in a manner that allows it to determine the weight of materials received, the Self -Hauler is not required to record the weight of material but shall keep a record of the entities that received the Organic Waste.
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14 (d) Self-Haulers that are Commercial Businesses (including Multi -Family Self-Haulers) shall provide information collected in Section 6.3.2.09(c) above to City, if requested. (e) A residential Organic Waste Generator that self -hauls Organic Waste is not required to record or report information in Sections 6.3.2.09(c) and (d) above.

6.3.2.10 Procurement requirements for City departments, direct service providers, and vendors.
(a) City departments, and direct service providers of landscaping maintenance, renovation, and construction shall:
(1) Use Compost and SB 1383 eligible mulch, as reasonably practicable, produced from recovered Organic Waste, for all landscaping renovations, construction, or maintenance performed for the City, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 eligible mulch used for land application shall comply with 14 CCR, Division 7, Chapter 12, Article 12 and must meet or exceed the physical contamination, maximum metal concentration and pathogen density standar ds specified in 14 CCR Section 17 852(a)(24.5)(A)(1) through (3).
(2) Keep and provide records of procurement of Recovered Organic Waste Products (either through purchase or acquisition) to City, upon completion of projects or procurement. Information to be provided shall include:
(A) General description of how and where the product was used and if applicable, applied;
(B) Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Product were procured.
(C) Type of product;
(D) Quantity of each product; and
(E) Invoice or other record demonstrating purchase or procurement. (b) All vendors providing Paper Products, Printing and Writing Paper shall:
(1) If fitness and quality are equal, provide Recycled -Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty (30) percent, by fiber weight, postconsumer fiber instead of non -recycled products whenever recycled Paper Products and Printing and Writing Paper are available at the same or lesser total cost than non-recycled items. (2) Provide Paper Products and Printing and Writing Paper that meet Federal Trade Commission recyclability standard as defined in 16 Code of Federal Regulations (CFR) Section 260.12.
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15 (3) Certify in writing, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the Jurisdiction. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website. (4) Certify in writing, on invoi ces or receipts provided, that the Paper Products and Printing and Writing Paper offered or sold to the Jurisdiction is eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12 (2013).
(5) Provide records to the City’s Recovered Organic Waste Product procurement recordkeeping Designee, in accordance with the Jurisdiction’s Recycled -Content Paper procurement policy(ies ) of all Paper Products and Printing and Writing Paper purchases within thirty (30) days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by any division or department or employee of the City. Records shall includ e a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in Sections 6.3.2.10(b)(3) and (b)(4) above for recycled -content purchases, purchaser name, quantity purchased, date purchased, and recycle d content (including products that contain none), and if non-recycled content Paper Products or Printing and Writing Papers are provided, include a description of why Recycled- Content Paper Products or Printing and Writing Papers were not provided.

6.3.2.11 Inspection and investigation by City.
(a) City representatives and/or Designees are authorized, in accordance with applicable laws, to conduct reasonable inspections and investigations, at random or otherwise, of any collection container, collection vehicle loads, or transfer, processing, or disposal facility for materials collected from generators, or Source Separated materials to confirm compliance with this chapter by Organic Waste Generators, Commercial Businesses (including Multi- Family Residential Dwellings), property owners, Commercial Edible Food Generators, haulers, Self -Haulers, Food Recovery Services, and Food Recovery Organizations, subject to applicable laws. This Section does not authorize City or any Designee to enter the interior of a private residential property for inspection without authorized consent or a lawful warrant.
(b) Regulated entity shall provide or arrange for access during all inspections (wit h the exception of residential property interiors) and shall cooperate with the City’s employee or Designee during such inspections and investigations. Such inspections and investigations may include confirmation of proper placement of materials in contai ners, Edible Food Recovery activities, records, or any other requirement of this ordinance described herein.

Failure to provide or arrange for access to an entity’s premises and/or access to records for any inspection or investigation is a violation of th is chapter and may result in enforcement as authorized in this chapter.
(c) Any records obtained by City during its inspection and other reviews shall be subject to the requirements and applicable disclosure exemptions of the Public Records Act as set forth in Government Code Section 6250 et seq.
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16 (d) City representatives and/or Designee are authorized, in accordance with applicable laws, to conduct any inspections or other investigations, randomly or as a result of a complaint of non-compliance, as reasonably necessary to ensure compliance with this chapter.

6.3.2.12 Enforcement.
(a) Education Period for Non-Compliance. Upon the effectiveness of this chapter and through December 31, 2023, City or its Designee will conduct inspections, route reviews or waste evaluations, and Compliance Reviews, depending upon the type of regulated entity, to determine compliance, and the City determines that any Organic Waste Generator, Self- Hauler, hauler, Tier One Commercial Edible Food Gen erator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance, City or Designee shall provide educational materials to the entity describing its obligations under this chapter and a notice that compliance is required and that violations may be subject to civil penalties starting on January 1, 2024.
(b) Violation of any provision of this chapter is grounds for issuance of a Notice of Violation.

Nothing in this chapter precludes the City from using any other available method, including without limitation issuance of administrative citations in accordance with Chapter 1.7 of the City’s Municipal Code, for violations of this chapter. (c) Compliance Deadline Extension Considerations.

City may extend any compliance deadline set forth in a Notice of Violation issued in accordance with this Section if satisfied there are extenuating circumstances beyond the control of the respondent that make compliance within the deadlines impracticable, including, without limitation, the following:
(1) Acts of God such as earthquakes, wildfires, flooding, and other emergencies or natural disasters;
(2) Delays in obtaining discretionary permits or other government agency approvals; or,
(3) Deficiencies in Organic Waste recycling infrastructure or Edible Food Recovery capacity and the City is under a corrective action plan with CalRecycle pursuant to 14 CCR Section 18996.2 due to those deficiencies.
(d) Civil Penalties for Non-compliance.

Beginning January 1, 2024, if the City determines that an Organic Waste Generator, Self- Hauler, hauler, Tier One or Tier Two Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance with this chapter, the noncompliance will be documented, and appropriate enforcement action may be taken.
(e) Use of available enforcement methods. The City may use any available method authorized in the Municipal Code, state law, or federal law to enforce the provisions of this chapter.
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17 (f) The remedies available to the City for the handling of violations or enforcement of the provisions of this chapter shall be cumulative and not exclusive of any other applicable provisions of City, state, or federal law.

6.3.2.13 Severability.

If any article, section, sentence, clause or phrase of this chapter is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this chapter. The City Council hereby declares that it would have adopted this chapter and adopted each article, section, sentence, clause or phrase thereof, irrespective of the fact that any one or more articles, sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 2. This Ordinance shall go into effect and be in full force from and after thirty (30) days after its final passage and adoption.

APPROVED:

______________________________ ______________________________ Mayor City Clerk

* * * * * * * * * *
The foregoing Ordinance was introduced and read at a regular meeting of the City Council held on March ___, 2022, and was adopted at a regular meeting of said Council held on March ___, 2022, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

DATED:

________________________________
City Clerk
96 AGENDA ITEM NO. 12.

TO: Mayor and City Council
FROM: Finance Department
DATE: March 7, 2022
SUBJECT: Receive and File - 2022 Five-Year Financial Forecast for the City of Clovis through Fiscal Year 202 6-27 and discuss options for budget preparation for 2022-23.

Staff: Jay Schengel, Finance Director
Recommendation: Receive and File
ATTACHMENTS: 1. Five-Year Financial Forecast through Fiscal Year 2026-27

CONFLICT OF INTEREST
None.

RECOMMENDATION
That the City Council receives, provides comment, and files the Five-Year Financial Forecast.

EXECUTIVE SUMMARY
The Five-Year Financial Forecast is a management tool that is updated and prepared each year to provide the City Council and City management with information on trends for the City’s long-term financial condition. The forecast represents a continuing effort to analyze the City’s fiscal condition based upon a reasonable set of economic and operational assumptions. It is a very important management tool for identifying fiscal trends and issues which must be addressed early to assure continued financial succ ess. The General Fund in this forecast is structurally balanced through 202 6-27. This report will serve as an opportunity to review the information in context with guidance for providing for the City’s core services in a sustainable manner.

BACKGROUND
The Five-Year Financial Forecast is a tool intended to be utilized in identifying financial issues confronting the City. The Five -Year Financial Forecast represents a continuing effort to analyze the City’s long -term fiscal condition based upon a reasonable set of economic and operational assumptions. As such, any change in any one of the assumptions can impact the forecasted projections.

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The document is presented in several sections that include Introduction, Executive Summary, Analysis of Funds, Narratives and Exhibits.

The report presents Exhibits that are the financial forecast spreadsheets and assumptions.

This provides a quick review of the revenues, expenditures, and fund balances for operations of the General Fun d as well as operations of the Public Utility Enterprise Funds, Planning and Development Services and T ransit. Throughout the document , selected tables and graphs have been paired with narrative descriptions to help illustrate forecasted City revenue collections and expenditures.

Based on current growth figures, the City of Clovis is expected to reach 135,000 in population over the next five years. The City pays very close attention to growth in our analysis of the General Fund to estimate revenues and expenditures for the day -to-day operations and servicing of the City’s population including police, fire, parks, recreation, senior services, and street maintenance.

General Fund Status / Summary

The General Fund forecast reflects unanticipated revenue increases due to the pandemi c recovery. As a result, t he General Fund forecast that is presented is structurally balanced and provides as much growth in critical services as possible. It should be noted that this forecast also includes a sustainable level of funding for the replacem ent of public safety vehicles, which started in 2019/20 and continues through 2026/27. Additionally, transfers to the General Government Facilities Fund are possible for various much needed capital projects and throughout the forecast period.

Developing accurate revenue estimates during a constantly evolving pandemic has proven to be challenging. Many influences at the local, state, and federal level have significantly impacted revenue sources both on an ongoing and one -time basis. Based on current estimates, revenues are currently projected to be approximately $ 13.2 million above expenditures, allowing for transfers to General Government Facilities , Fleet and Planning and Development Services. Because the 202 1/22 budget was prepared on a fairly conservative basis, most budgets are experiencing better than originally estimated outcomes such as revenues exceeding budgeted estimates while expenditures are not exceeding budgeted estimates. The 2021/22 budget included a $1.3 million unreserved beginning fund balance (Contingency for Economic Uncertainty).

General Fund revenues are projected to exceed the working budget by $16.1 million in total for the current fiscal year. This is due to sales taxes faring much better than anticipated amidst a pandemic crisis along with the rapid acceleration of people shopping online . Also, additional federal grant funds were allocated to the City including the American Rescue Plan Act (ARPA) of 2021 for a total of $17.2 million, with the first tranche of $8.6 million received in May 2021 and the second tranche to be received in May 2022 for the same amount. The City also received the Staffing for Adequate Fire and Emergency Response (SAFER) grant funding to hire additional fire fighters in 2021 for Fire Station 6 and will receive approximately $4 million over a four -year period. State reimbursements for wildfires are coming in with an 98 AGENDA ITEM NO. 13.

additional $1.2 million over working budget and Transient Occupancy Taxes has a full operating year of taxes from the new Marriott Courtyard , increasing its estimate by an additional $0.7 million.

Property Taxes are projected to be slightly above budget. Card room fees are back to operating at normal capacity for a full year without mandated closures , bringing in an estimated $0.8 million in additional fees. Franchise Fees are projected to be slightly above budget although fees are declining for cable as more residents are opting into satellite and streaming services for home entertainment which are services not subject to Franchise Fees.

Business Licenses are anticipated to increase approximately $0.4 million due to a significant increase in this year’s California Consumer Price Index (CCPI). All additional grant revenues projected are offset with corresponding additional expenditure increases in salaries, benefits, and overtime.

The amount of the Emergency Reserve continues to grow. As a result, the Emergency Reserve, a percentage of expenditures, is projected to grow to 24.5% of expenditures over the projected years. This percentage is above the 15% minimum level established by City Council and is almost at the maximum goal of 25%.

FISCAL IMPACT
The forecast provides an opportunity to review the historical trends for actual results and consider current economic factors for future decisions. It provides guidance for the City to maintain fiscally sustainable operations into the future.

REASON FOR RECOMMENDATION
The financial forecast provides an assessment of the impacts of past budgetary policy and possible future outcomes based on current budget strategies. Enhancing services while maintaining financial sustainability are shown to be critical to the City’s future success. The forecast is a tool to be used for prudent management of the City’s resources.

ACTIONS FOLLOWING APPROVAL
The staff will receive comments from the Council to assist with the preparation of the 2022- 23 Annual Budget.

Prepared by: Jay Schengel, Finance Director

Reviewed by: City Manager _AH__

99 AGENDA ITEM NO. 13.

Five-Year
Financial Forecast
Through Fiscal Year 2026/27
Prepared March 2022
City of Clovis
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CITY OF CLOVIS
Five-Year Financial Forecast
Through Fiscal Year 2026/2027
PREPARED BY:

John Holt, City Manager
Andrew Haussler, Assistant City Manager
Jay Schengel, Finance Director
Gina Daniels, Assistant Finance Director
Jeff Blanks, Deputy Finance Director
Susan Evans, Accounting Supervisor
Jose Reynoso, Accountant
Jose Cortez, Accountant
Ran Chan, Accountant
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CITY OF CLOVIS

FIVE-YEAR FINANCIAL FORECAST

TABLE OF CONTENTS

I. INTRODUCTION

A. Introduction, Executive Summa ry & Analysis of Funds ............. 1-4

II. GENERAL FUND

A. Summa ry ................................................................................... 5-8

B. Financial Summary Spreads heet ................................................. 9

C. Revenue Sp readsheets ......................................................... 10-11

D. Expenditure Sp readsheets .................................................... 12-13

III. ENTERPRISE, INTERNAL SERVICE & DEBT SERVICE FUNDS

A. Water Ente rprise.................................................................... 15-17

B. Sewer Ente rprise ................................................................... 19-21

C. Community Sanitati on Enterprise .......................................... 23-25

D. Transit Ente rprise .................................................................. 27-29

E. Planning and Development Services Enterprise ................... 31-33

F. Internal Service & Debt Service ................................................. 34 103
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INTRODUCTION
The Five-Year Financial Forecast through 2026/27 represents a continuing effort to analyze the City’s long-term fiscal condition based upon a reasonable set of economic and operational assumptions. It is an import ant management tool used by both the City Council and the City M anager for identifying fiscal trends and issues which must be addressed to assure continued financial success. The set of forecasts contained in this report is not a prediction of what will occur. The forecast is a snapshot in time and an approximate view of what could occur in the future if all the assumptions are realized.

As with any forecast or prediction, the assumptions and proj ections for the nearer years carry more certainty and confidence than for the years further into the future.

The economic disruption of the past few years has made forecasting increasingly challenging as financial markets, cost of goods, and the economy overall as grown increasingly volatile along with various stimulus and assistance programs that have been implemented by the state and federal governments. It is important that the City continue to closely monitor economic conditions locally , statewide, and nationally and policies at state and national levels that will impact the City’s financial health.

EXECUTIVE SUMMARY
The Five-Year Financial Forecast is a shift from previous years in the General Fund. In previous years the ability of the City to cover operational expenses and cover capital needs was extremely challenging as sales and property taxes made up 65% of the total General Fund revenues on average. The City received one-time funds from the federal and state governments in response to the COVID-19 pandemic from the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 and The American Rescue Plan Act (ARPA) of 2021. The 2020/21 CARES funding was approximately $2.1 million while the ARPA funds received in the first tranche was $8.6 million, with the second tranche to be received in May 2022 for the same amount. The City also received the Staffing for Adequate Fire and Emergency Response (SAFER) grant funding to hire additional fire fighters in 2021 for Fire Station 6 and will re ceive approximately $4 million over a four- year period.

The General Fund forecast reflects unanticipated revenue increases due to the pandemic recovery. As a result, the General Fund forecast that is presented is structurally balanced and provides as much growth in critical services as possible. This is feasible due to the one-time funds the City received from CARES, ARPA and SAFER and better than expected sales tax revenues. It should be noted that this forecast also includes a sustainable level of funding for the replacement of public safety vehicles, which started in 2019/20 and continues through 2026/27. Addi tionally, transfers to the General Government Facilities Fund are possible for various much needed capital projects and throughout the forecast peri od, ongoing transfers to the emergency reserve are being increased to attain a level of 24.5% of expenditures almost reaching the target of 25%. 1 106
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The Water Enterprise Fund forecast maintains stable reserves with annual 3% rate increases that have been adopted and are include d in each year of the forecast. The forecast also includes continued contributi ons to the reserves for drought contingency through 2024/25 and for the Sustainable Groundwater Management Act (SGMA) though 2026/27. In 2020/21, there was a $5 million down payment as required by the Firm Water Supply Agreement with the Fresno Irrigation District (FID). The remaining balance of $30 million is anticipated to be paid by development impact fees in future years. The forecast includes an interfund loan of $7.5 million in 2021/22 from the Trichloropropane (TCP) reserves to General Services, and annual repayment of $770 t housand for the loan beginning in 2022/23 for ten years.

This loan will not affect the City’s ability to treat for TCP during the term of the loan.

The Sewer Enterprise Fund forecast maintain s stable reserves throughout the forecast period. Beginning in 2022/23, a 3% rate increase is included in each year of the forecast period to keep up with rising operating, maint enance, and capital costs, and to maintain a sufficient fund balance for future bonding capacity. An interfund loan is shown beginning in 2023/24 of the fo recast because it is projec ted that the collection of Development Impact fees for Sewer Major Faci lities will be insufficient to cover the debt service payments. However, there are sufficient funds in the bond charge fund balance collected in prior years to continue the fu ll $7.30 per month rebate to customers until 2026/27. The ability to continue to rebate funds back to ratepayers will be monitored closely throughout the forecast period.

The Community Sanitation Fund maintains stable reserves in this Forecast. A 4% annual increase, or portion thereof, was approved by City Council in November 2004 to be implemented as necessary. In 2021/22, the Council implemented a refuse rate increase of 3%. A decrease of 1. 5% is recommended in 2022/23 and increases of 4% are projected thereafter for the re mainder of the forecast per iod. To keep pace with the recycling and green waste contract increases , the approved 4% annual increase is projected for these operations . In 2021/22, Council approved a $0.50 rate increase for Street Sweeping charges in the City of Clovis Municipal Code resulting in a new rate of $2.75 per month beginning July 1, 2022.

The Transit Fund reflects throughout the forecast period enough revenues to support its operational and capital needs because of incr eased revenues from the Transportation Development Act, which includes Local Tr ansportation Funds (LTF) and State Transit Assistance (STA) funds allocated to Trans it based on population, taxable sales, and transit performance. With funding for Transit constantly in flux, and the Measure C sales

tax due to expire after 2027, the types and leve ls of funding will be closely monitored to make any necessary adjustments to current service levels should the need arise. Project- specific funding, including SB1 and various cap-and-trade grants, are used for capital expenses for enhancement of rider amenities . Beginning with the 2017/18 fiscal year, the Transit Fund was required to defer revenue that it had received but not yet spent. Any working capital that is required to be defe rred can be seen on the Transit Fund forecast 2 107
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on the line labeled “Deferred Revenue.” The deferred revenue is projected to decline in the fiscal years 2020/21 through 2022/23 due to the construction of a transit center.

The Planning and Development Services Ente rprise Fund forecast maintains adequate, but constant reserves. The reserves are included in case of a slow-down and prudent funding is maintained throughout the forecast period. There have been several years of relatively high numbers of residential units per year; however, starting in 2021/22, it is anticipated that those numbers will start to decline. As a result, the current fiscal year will draw from the fund’s working capital but will increase working capital in all the projection years. The fund maintains a healthy worki ng capital balance throughout the forecast period.

Internal Service Funds are projected to be self-balancing throughout the forecast period.

Each of the Internal Service Funds is co ntinually monitored, and more cost-effective programs are implemented wherever possible to reduce costs to all other City operations.

Debt Service Funds will be fully funded to ma ke all debt payments and meet all legal obligations.

ANALYSIS OF FUNDS
The purpose of this forecast is to prov ide the City Council and the City Manager with an early identification of financial trends. With early detection, financial trends identified as possible problems can be dealt with in a reas onable manner rather than waiting for a crisis to occur.

The City’s Annual Budget represents a total financing plan for all City operations and must be analyzed by its component par ts to make any meaningful adjustments. Unlike a private holding company, the City cannot remove cash from any one enterprise operation to help support general tax funded operations. Although there is certainly some financial interdependence between the funds, such as inte rnal service fund charges to allocate common costs, each fund represented in the budget must stand alone.

When analyzing City operations, it is appropri ate to look at the budget, department by department. However, when reviewing long range fina ncial policies, it is best to look at the fund structure rather than the department structure. The major fund groups reviewed in this forecast are the operating funds of the City including:

General Fund - This fund includes the functions of general government, including elected officials, administration and finance, public safety, and some field maintenance activities, such as parks and street maintenance.

Enterprise Funds - These funds include operations for water, sewer, solid waste, street cleaning, transit, and planning and development services. 3 108
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Internal Service Funds - These funds include property and liability insurance, employee benefits, fleet maintenance, and general services.

Debt Service Funds - These funds include all debt servic e activity for which the City is responsible.
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GENERAL FUND
Current Year – 2021/22
The 2021/22 Annual Budget is best classified as a recovery budget. Significant cuts were implemented in the 2020/21 fiscal year budget due to anticipat ed reductions in revenue that were expected because of t he COVID-19 pandemic and its asso ciated business shutdowns.

As it turns out, revenues did not decline during fiscal year 2020/21 as much as had been anticipated, and much, if not all, of any lost revenues were compensated for by state and federal stimulus funds. As a result, the 2021/22 Annual Budget generally re stores the cuts and personnel freezes implemented in 2020/21 and included significant new spending.

Developing accurate revenue estimates during a constantly evolving pandemic has proven to be challenging. Many influences at the loca l, state, and federal le vel have significantly impacted revenue sources both on an ongoing an d one-time basis. Based on current estimates, revenues
are currently project ed to be approximately $13.2 million above expenditures, allowing for transfers to General Government Facilities, Fleet and Planning and Development Services. Due to the receipt of the American Rescue Plan Act (ARPA) funding, the City was able to put funds aside for long overdue building maintenance and capital projects in addition to building up the Fleet Fund for future vehicle purchases. Because the 2021/22 budget was prepared on a fairly conservative basis, most budgets are experiencing better than originally estimated outcomes such as revenues exceeding budgeted estimates while expenditures are not exceeding budgeted estimates.

General Fund revenues are projected to exceed the working budget by $16.1 million in total for the current fiscal year. This is due to sales taxes faring much better than anticipated amidst a pandemic crisis along wit h the rapid acceleration of online shopping. Also, additional federal grant funds were allocated to the City including the American Rescue Plan Act (ARPA) of 2021 for a total of $17.2 million, with the first tranche of $8.6 mill ion received in May 2021 and the second tranche to be received in May 2022 for the same amount. The City also received the Staffing for Adequate Fire and Emergency Response (SAFER) grant funding to hire additional fire fighters in 2021 for Fire Station 6 and will re ceive approximately $4 million over a four-year period. State reimbursements for wildfires are co ming in with an additional $1.2 million over working budget and Transient Occupancy Taxes has a full operating year of taxes from the new Marriott Courtyard, increasing its estimate by an additional $0.7 million.

Property Taxes are projected to be slightly above budget. Card room fees are back to operating at normal capacity for a full year without mandated closures, bringing in an estimated $0.8 million in additional fees. Franchise Fees are projected to be slightly above budget although fees are declining for cable as more residents are opting into satellite and streaming services for home entertainment which are servic es not subject to Franchise Fees. Business Licenses are anticipated to increase approximately $0.4 million due to a significant increase in this year’s California Consumer Price Index (CCPI) . All additional grant revenues projected are offset with corresponding additional expenditure increases in salaries, benefits, and overtime.
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Forecast – 2022/23 through 2026/27
Three distinct challenges are in the General Fund forecast for the next five years.

Discretionary revenue is projected to grow at a slower rate, PER S costs will rise significantly, and the City continues to grow which increase s the demand for General Fund services, most notably public safety. Included in the public safety growth are 3 additional police officers for each of the five forecasted years and an addition of a second Deputy Fire Chief in 2022/23.

To attain the City’s goal of having the emergency reserve funded at 25%, the emergency reserve is being increased from 23% to 24.5% dur ing this forecast period. As expenditures plus transfers exceed revenues, the General Fund balance is projected to diminish overall from $1.7 million in FY 2022/23 to $0.88 million in FY 2024/25 and increase to $1.4 million in F Y
2026/27.

Revenues
Property Tax and Sales Tax are the two largest s ources of discretionary revenue; Franchise Fees, Business Licenses, Transient Occupan cy and Other Taxes make up the bulk of the remainder. Due to Proposition 13, property tax growth is largely dr iven by growth in the City.

When growth occurs faster than normal, the property tax grows faster than anticipated, but the growth also brings a corresponding increas e in the demand for services. Property Tax revenues, due to increases in development of resi dential and commercial units last fiscal year, will be realized in FY 2022/23. T he City’s current base for property taxes wh ich is increased
each year by an inflation factor not to exc eed 2% is based on the California Consumer Price Index which for FY 2022/23 is 2%. Property tax gr owth during the forecast period is projected to increase at a rate corres ponding to the 15-year average of 800 single and multi-family residential units. The forecast does not project a housing slump because those are difficult to anticipate. However, if one was to occur, this w ould result in property tax growth being lower than forecasted.

Sales tax growth has changed due to a change in how people spend their money and due to the shift to online purchases which was exacerbated by the pandemic. In broad terms, consumers are spending a much higher percentage of their disposable income on services rather than goods historically. Since only goods are subject to sales tax, the revenue from sales tax is not keeping up with population growth and inflation. Additi onally, consumers are purchasing an ever-increasing portion of their goods from online sources rather than local sources. Sales tax is not collected on some online purchases, and sales tax from other online purchases is paid to the locality of distribution rather than localit y of delivery. Furthermore, the online sales tax that is nominally paid to the localit y of delivery is actually paid to the County of delivery and is then distributed to the cities in proportion to their sales tax revenues from brick- and-mortar vendors.

In June 2018, the U.S. Supreme Court’s decision in South Dakota vs. Wayfair Inc . overruled the long-standing physical presenc e rule that prevented states from taxing remote sales.

Effective April 1, 2019, Californi a established that all retailers , whether located inside or outside California, are required to collect and re mit taxes on all sales made for delivery in any district that imposes such tax if the retailer has more than $500,000 in annual taxable sales.

As a result of California’s AB 147-The Marketplace Facilitator Act’s response to the “Wayfair” decision, the county pools have experienced vigorous gains creating a new baseline for pools 6 113
AGENDA ITEM NO. 13.
allocations. The City anticipated the pandemic and its economic impacts on sales taxes would be severe and negative. Contrary to these early assumptions, the decline of sales taxes was not as severe as anticipated de spite the state’s stay-at-home orders, business closures, and other restrictions. Consumers adapted to buying online at a record pace. Although recent acceleration to online buying should continue growing the pools, future gains are anticipated to subside to levels moderately better than pre-Wayf air historical levels, according to the City’s sales tax consultant HdL Companies.

Sales Tax is projected to show an increase of 8.9% in FY 2021/22 after a robust rebound in FY 2020/21. For the remaining projec ted years, Sales Tax is expected to experience normalized growth at 5.0% annually with population growth at 800 residential units per year.

The forecast reflects the opening of a new hotel in Other Taxes. Transient Occupancy Tax is projecting an increase in FY 2022/23 with the opening of the Marriott Residence Inn.

Growth in Franchise Taxes has slowed in rec ent years as more households move away from traditional hard-wired phone and cable TV service towards cellular and satellite services which are not taxed. All other discretionary revenues are forecast to increase at average growth plus inflation at a three-year average Consumer Price Index.

PERS
PERS costs are projected to rise significantly during the foreca st period due to the recent lowering of the discount rate and to changes in PERS’ actuarial assumptions. The following chart shows the expected General Fund PERS cost s, both as a percentag e of salary and in dollars, for the forecast period.

As can be seen in the chart, annual General F und PERS costs are projected to rise by $3 million between the current year and the end of the forecast period. 7 114
AGENDA ITEM NO. 13.

Growing Demands
The City continues to grow, and in recent years it has grown faster than the long-term average.

The growth drives some revenue growth, but it also drives a growing demand for services.

Police and Fire comprise the largest expenditures in the General Fund (87% of the City’s discretionary revenues go to Police and Fire) and are most impacted by this growing demand.

Staff will continue to evaluate different ways of delivering services using technology, social media, and best practices to narrow the gap between increased demand for services and the City’s ab
ility to provide without lowering level of service. Failure to grow these departments, as well as other General Fund departments at a rate corresponding to the growth of the City, may result in an erosion of the level of service that is provided.

Approach to the Forecast
The forecast represents staff’s best estimate of the City’s finances for the next five years and will be the basis on which the budget is developed. The foreca st must be structurally sound and sustainable, so projected revenues, expenditu res and transfers must be balanced. Some of the components of these revenues, expenditures and transfers are more easily controllable than others. Major increases to revenues, ei ther through tax increas es or extraordinary commercial growth, would be challenging to achi eve or even completely infeasible, so they were not considered in the development of t he forecast. Expenditures and transfers were adjusted as necessary to best achieve the Cit y’s goals and comply with the City’s policies within the available rev
enue.

The impact of the PERS costs is significant; those costs will rise from 11% of the General Fund budget a few years ago to 15% by fiscal year 2026/ 27. Essentially, that means the level of service plus the transfers to the reserve that can be provided in 2026/27 will be only 96% of what could have been provided without this rise in PERS costs.

Service levels are already stretched thin, so th is forecast emphasizes growing those services, specifically public safety, as much as revenues allow. It should be noted that this forecast also includes a sustainable level of funding for the replacement of public safety vehicles. Transfers to the General Government Facilities Fund throughout the forecast are for construction of a fire training facility classrooms, reconstruction of Fire Station #2, remodel of Fire Station #3, Landmark Square debt service and expansion of t he property room for t he Police Department.

Transfers to the emergency reserve are being increased from 23% to 24.5% of expenditures to attain the goal of 25%. The fore cast includes three additional police officers for each of the Forecast years and the addition of a Deputy Fire Chief. Addi tionally, two non-sworn General Fund positions are projected to be added and tw o non-sworn are going to be reclassified during the forecast period.
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AGENDA ITEM NO. 13.

CITY OF CLOVIS

General Fund Financial Forecast - Summary
(dollars in thousands)
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Beginning Available Fund Balance 3,630 4,430 4,110 1,280 1,500 1,650 1,100 880 2,870 Reappropriation/Encumbrances 10 (190) 290 (570)

REVENUES
Discretionary 55,640 57,710 66,100 71,370 74,970 77,990 81,540 85,220 89,050 Non-Discretionary 17,590 17,550 30,440 30,150 21,130 21,130 20,850 21,610 22,410 Total Revenues 73,230 75,260 96,540 101,520 96,100 99,120 102,390 106,830 111,460

EXPENDITURES
Public Safety 52,030 54,420 58,590 66,430 68,180 71,090 73,470 75,710 77,710 Public Utilities 9,990 10,050 10,600 11,380 11,770 12,170 12,590 13,000 13,390 General Government 8,330 8,360 8,630 10,500 11,470 11,490 11,910 12,160 12,590 Total Expenditures 70,350 72,830 77,820 88,310 91,420 94,750 97,970 100,870 103,690

Resources Above/(Below) Operating Expenditures 2,880 2,430 18,720 13,210 4,680 4,370 4,420 5,960 7,770

ADDITIONAL ITEMS
Transfers In from Successor Agency 0 450 0 000000
Transfers Out to General Government Facilities Fund 0 0 (11,950) (6,090) (720) (660) (1,060) (660) (5,940) Transfers Out to PDS/Projects (990) (300) (300) (310) ( 300) (300) (300) (300) (300) Transfers Out to Fleet Fund 0 (2,660) (6,040) (2,980) (1,910) (2,260) (1,980) (2,310) (2,270) Total Additional Items (990) (2,510) (18,290) (9,380) (2,930) (3,220) (3,340) (3,270) (8,510) Net Increase/(Decrease) to Fund Balance 1,890 (80) 430 3,830 1,750 1,150 1,080 2,690 (740)

OTHER ITEMS
(Use of)/Addition to Emergency Reserve 1,100 50 3,550 3,040 1,600 1,700 1,300 700 700 Total Other Items 1,100 50 3,550 3,040 1,600 1,700 1,300 700 700 Ending Available Fund Balance 4,430 4,110 1,280 1,500 1,650 1,100 880 2,870 1,430 Emergency Reserve-(Dollars) 12,760 12,810 16,360 19,400 21,000 22,700 24,000 24,700 25,400 Emergency Reserve as a % of Expenditures 18.10% 17.60% 21.00% 22.00% 23.00% 24.00% 24.50% 24.50% 24.50%

PROJECTEDESTIMATEDACTUALS
General Fund Summary 2/22/2022 10:01 AM
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AGENDA ITEM NO. 13.

CITY OF CLOVIS
General Fund - Financial Forecast (dollars in thousands)

REVENUES ESTIMATED
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Residential Units (SF + MF) 848 1,112 1,238 800 800 800 800 800 800 Discretionary
Property Taxes 15,070 15,880 16,960 17,920 18,780 19,140 19,900 20,670 21,460 Property Tax In Lieu-VLF 9,720 10,420 11,160 11,900 12,400 12,920 13,460 14,030 14,620 Sales Tax 21,300 22,070 27,180 29,590 31,070 32,630 34,270 35,980 37,770 Franchise Fee 2,360 2,460 2,600 2,740 2,870 3,000 3,140 3,280 3,430 Business License 3,370 3,490 3,710 4,010 4,240 4,480 4,730 5,000 5,280 Other Taxes 3,460 2,970 4,100 5,020 5,420 5,620 5,830 6,040 6,260 Interest 180 180 120 60 60 70 80 90 100
Other Revenues-(Disc.) 180 240 270 130 130 130 130 130 130 Total Discretionary
55,640 57,710 66,100 71,370 74,970 77,990 81,540 85,220 89,050 Non-Discretionary
Community Facility Fee 1,850 2,080 2,110 2,160 2,390 2,630 2,870 3,140 3,430 Sales Tax-(Public Safety) 300 320 350 420 490 510 530 550 570 Other Lic & Permits 100 90 40 100 100 100 100 100 100
Fines & Forfeitures 200 190 150 190 190 190 190 190 190 Building Rentals 50 40 0 40 40 40 40 40 40
State Subvention-Gas Tax 1,110 1,260 1,340 1,750 1,880 1,900 1,920 1,940 1,960 Grants 2,080 1,070 3,410 3,590 2,400 1,700 700 700 700
From Other Agencies 660 920 840 750 780 810 840 870 900 Current Services 1,660 1,620 1,380 1,640 1,700 1,760 1,820 1,890 1,960 Landscape Maint. Charges 3,570 3,840 4,000 4,260 4,420 4,580 4,750 4,920 5,100 Other Revenues-(Non-Disc.) 260 270 10,770 8,810 170 180 190 200 210 Impact/Rental Fees 1,630 1,700 1,760 1,830 1,870 1,940 2,010 2,080 2,160 Admin Charges 4,120 4,150 4,290 4,610 4,700 4,790 4,890 4,990 5,090 Total Non-Discretionary
17,590 17,550 30,440 30,150 21,130 21,130 20,850 21,610 22,410 Total Revenues 73,230 75,260 96,540 101,520 96,100 99,120 102,390 106,830 111,460

ACTUALS PROJECTED
General Fund 2/23/2022 12:47 PM
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AGENDA ITEM NO. 13.

Revenue Assumptions (dollars in dollars)
PROPERTY TAXES: ANNUAL INCREASE INCREASE IN ASSESSED VALUE

2.00% $271,000,000 18.57% of 1%
Increase in AV above is based on 800 residential units Nonresidential Units based on % of Residential Units is 20.5% 2022/23 2023/24 2024/25 2025/26 2026/27
PROPERTY TAX GROWTH %: PROJECTED 2.00% 2.00% 2.00% 2.00% 2.00% PROPERTY TAX IN LIEU-VLF: INCREASE BY ASSESSED VALUE GROWTH 4.20% (Based on 800 units) COMMUNITY FACILITY FEE: 2/3 OF NEW RES UNITS PER YR 540 ANNUAL FEE: $266 INCREASE BY: 3.66% SALES TAX: 3 YEAR CPI SALES TAX RATE POPULATION GROWTH PER CAPITA PER YEAR

3.66% 1.00% 2,200 PER YEAR $235
COUNTY SHARE: 5.00% OF GROSS SALES TAX (Based on 800 units) 2022/23 2023/24 2024/25 2025/26 2026/27
SALES TAX GROWTH %: PROJECTED 5.0% 5.0% 5.0% 5.0% 5.0%
FRANCHISE TAX: 3 YEAR NEW RES UNITS FEE PARTICIPATION % P G & E CPI PER YEAR OF GROSS 50.00% Comcast/AT&T $250 Per Unit per Mo

3.66% 800 1.00% $90 Per Unit per Month
Note: 3 year average for residential units is 1070, 5 year average is 1110 ,10 year average is 910 units BUSINESS LICENSE: INCREASE 3.66% THREE YR CPI 2.00% NEW BUSINESSES OTHER TAXES: Includes Transient Occupancy Tax, Cardroom Fees, and Real Property Transfer Tax THREE YR CPI 3.66%
FINES AND FORFEITURES: PARKING AND VEHICLE $180,000 BASED ON THREE YEAR AVERAGE INTEREST: RATE ->> 1.50% ON PRIOR YEAR'S BALANCE
BUILDING RENTALS: INCREASE ANNUALLY BY: 2.00%
STATE SUBVENTIONS: GAS TAX POPULATION GROWTH
PER CAPITA $11.00 2,200 PER YEAR (Based on 800 units)
Gas Tax Per Capita based on last year actuals
GRANTS: $700,000 THREE YEAR AVERAGE OF ONGOING GRANTS
CURRENT SERVICES: INCREASE BY THREE YEAR CPI AVERAGE 3.66% OTHER REVENUES: INCREASE BY THREE YEAR CPI AVERAGE 3.66% IMPACT/RENTAL FEES: BASED ON ADD'L ROUTES PROJECTED IN THE ENTERPRISE FUND AND INCREASE BY 3 YEAR CPI AVERAGE ADMIN CHARGES: INCREASE 2.00% PER YEAR
CITY TAX RATE (Before reductions)
General Fund 2/17/2022 4:35 PM
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CITY OF CLOVIS
General Fund - Financial Forecast (dollars in thousands)

EXPENDITURES ESTIMATED
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27

PUBLIC SAFETY
Salaries
Police-CPOA 10,040 9,820 9,890 10,940 11,750 12,270 12,810 13,360 13,930 Fire 5,610 5,750 6,040 7,180 7,440 7,590 7,740 7,890 8,050 Public Safety-Management 2,910 3,080 3,380 3,480 3,760 3,870 3,950 4,030 4,110 Dispatchers
Police-Non CPOA 3,620 3,780 3,790 4,340 4,700 4,790 4,890 4,990 5,090 Fire-Non Firefighters 200 200 220 300 310 320 330 340 350 Overtime
Overtime-Police 2,650 2,730 2,880 2,880 2,880 2,880 2,880 2,880 2,880 Overtime-Fire 2,250 1,470 2,880 3,110 1,610 1,610 1,610 1,610 1,610 Extra Help 740 730 760 830 830 830 830 830 830
Benefits
Health 3,300 3,380 3,510 3,990 4,350 4,700 5,080 5,480 5,910 Retirement 7,030 8,070 9,140 11,070 11,960 12,670 13,360 13,750 14,050 Other 2,760 2,810 3,290 3,910 4,370 4,380 4,470 4,560 4,650 SMS 10,240 11,940 12,250 13,460 13,850 14,790 15,120 15,570 15,820 Capital Outlay 680 660 560 940 370 390 400 420 430
Total Public Safety 52,030 54,420 58,590 66,430 68,180 71,090 73,470 75,710 77,710

PUBLIC UTILITIES
Salaries 2,200 2,230 2,350 2,610 2,710 2,760 2,820 2,880 2,940 Overtime 110 110 120 110 110 110 110 110 110
Extra Help 20 20 10 40 40 40 40 40 40
Benefits
Health 510 500 540 600 640 680 730 780 830
Retirement 340 390 450 560 560 590 610 610 580
Other 440 370 360 360 370 380 390 400 410
SMS 6,310 6,400 6,740 7,060 7,320 7,590 7,870 8,160 8,460 Capital Outlay 60 30 30 40 20 20 20 20 20
Total Public Utilities 9,990 10,050 10,600 11,380 11,770 12,170 12,590 13,000 13,390

GENERAL GOVERNMENT
Salaries 3,150 3,430 3,540 3,770 4,030 4,110 4,190 4,270 4,360 Overtime 10 10 10 20 20 20 20 20 20
Extra Help 420 370 170 440 440 440 440 440 440
Benefits
Health 610 650 650 700 760 810 870 930 1,000
Retirement 540 670 710 880 920 950 990 980 920
Other 210 230 250 290 300 310 330 360 400
SMS 3,380 2,980 3,290 4,380 4,990 4,840 5,060 5,150 5,440 Capital Outlay 10 20 10 20 10 10 10 10 10
Total General Government 8,330 8,360 8,630 10,500 11,470 11,490 11,910 12,160 12,590 Total Expenditures 70,350 72,830 77,820 88,310 91,420 94,750 97,970 100,870 103,690

PROJECTEDACTUALS
General Fund 2/17/2022 4:35 PM
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AGENDA ITEM NO. 13.

Expenditure Assumptions (dollars in thousands)
SALARIES: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 POLICE-CPOA 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00% SALARY BASE $10,810 $11,480 $11,990 $12,520 $13,070 $13,630 Additional Officers-Salary $130 $270 $280 $290 $290 $300 Number of Additional Officers 3 3 3 3 3 3
Additional Non-Sworn Positions 0 0 0 0 0 0
Total Sworn Officer Positions 109 112 115 118 121 124
FIRE 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00%
SALARY BASE $7,180 $7,440 $7,590 $7,740 $7,890 $8,050
Additional Firefighter-Salary $0 $0 $0 $0 $0 $0
Number of Addl Firefighters 0 0 0 0 0 0
Total Sworn Positions 67 68 68 68 68 68
PUBLIC UTILITIES 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00% SALARY BASE $2,610 $2,710 $2,760 $2,820 $2,880 $2,940
Additional Salaries-Park/Street $0 $0 $0 $0 $0 $0
Addl Park/Street employees 0 0 0 0 0 0
GENERAL GOVT 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00% MANAGEMENT 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00% OVERTIME: INCREASE BY PREVIOUS THREE YEAR CPI 3.66%
EXTRA HELP: FLAT FOR NEXT FIVE YEARS
HEALTH: INCREASE PER YEAR 7.0%
RETIREMENT: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 POLICE-SAFETY 53.500% 56.100% 57.300% 58.400% 58.500% 58.500% DISPATCHERS 29.500% 28.600% 29.300% 29.900% 29.300% 27.700% FIRE 53.500% 56.100% 57.300% 58.400% 58.500% 58.500%
PUBLIC UTILITIES 29.500% 28.600% 29.300% 29.900% 29.300% 27.700% GENERAL GOVERNMENT 29.500% 28.600% 29.300% 29.900% 29.300% 27.700% MANAGEMENT 29.500% 28.600% 29.300% 29.900% 29.300% 27.700% PERS EE COST SHARING -MISC -8.400% -8.400% -8.400% -8.400% -8.400% -8.400% PERS EE COST SHARING -SAFETY -8.000% -8.000% -8.000% -8.000% -8.000% -8.000% WORKERS COMP: Police-CPOA 13.76% 14.00% 14.00% 14.00% 14.00% 14.00% (included in other benefits) Fire 3.76% 4.00% 4.00% 4.00% 4.00% 4.00% Mgmt & Admin 1.64% 2.00% 2.00% 2.00% 2.00% 2.00%
Public Utility 9.57% 10.00% 10.00% 10.00% 10.00% 10.00% OTHER BENEFITS: Previous year's amount increased by contracted and estimated salary increases. Includes 2% of non-safety salaries for deferred comp, 1% of total salaries for sick leave incentive, 1.45% for medicare and 1% for other benefits.

OTHER SMS: AVERAGE CPI 3.66%
CAPITAL OUTLAY: INCREASE BY 3 YEAR AVG CPI PER YEAR 3.66% 50% FOUR YEAR AVERAGE-PUBLIC SAFETY $360
50% FOUR YEAR AVERAGE-PUBLIC UTILITIES $20 + ADDITIONAL EQUIP FOR NEW EMPLOYEES 50% FOUR YEAR AVERAGE-GEN GOVT $10
CONTINGENCY RESERVE: Maintain not less than 15% with a goal to reach 25% of total expenditures. See the Summary Sheet for reserve amounts. (PERS ESTIMATE)
General Fund 2/17/2022 4:36 PM
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ENTERPRISE FUNDS
The purpose of the forecast for the Enterprise Funds is to provide the City Council and the City Manager with an early identificati on of financial trends along with the future financial costs of legislative and regulatory require ments, and the ability to res pond appropriately. Enterprise Funds, by definition, are suppor
ted by rates set to recover the full cost of services, including capital outlays and debt service. The rate setting process requires advance planning, preparation of rate studies, a public hearing process, and a final decision to implement new rates if approved. This process can take up to six months to complete. For this reason, the forecast is a critical management tool for the City.

Further detail regarding each Enterprise Fund is discussed in the following pages. Annually, staff re-evaluates all enterprise operations to determine if any adjustments to rates are needed. At this time, water, sewer, and community sanitation enterprise operations have increases approved sufficient to carry the operat ions through the forecast period, barring any unforeseen or catastrophic event. Once these rate increases meet their objectives, staff will begin to evaluate implementing smaller, more measured increases on an annual basis to avoid large one-time increases.

Water Enterprise
The Water Enterprise Fund is projected to have a working capital balance of approximately $19 million at June 30, 2022. The City Council approved adjusted water rates in the Water Enterprise Fund beginning in June 2016 to comp ly with state legal r equirements regarding a tiered water rate structure. The rate adjustment was revenue neutral. Council also approved a 3% annual increase that can be implemented when necessary to fund the increased cost to treat and distribute potable water within the City, capital improv ements, and to provide debt

service coverage for the 2013 Surface Water Treat ment Plant bonds. A 3% rate increase to water rates is included in each of the five years of the projected forecast. The forecast also includes continued contributions to the re serves for drought contingency through 2024/25 and for the Sustainable Groundwater Management Act (SGMA) t hough 2026/27. In 2020/21, there was a $5 million down payment as required by the Firm Water Supply Agreement with the Fresno Irrigation District (FID). The remaining balance of $30 m illion is anticipated to be paid by development impact fees in future years. In 2016/17, the Water Enterprise Fund received a legal settlement for Trichloropropane (TCP) tr eatment. The Water Enterprise Fund will be required to treat potable water for any TCP present, and a reserve for TCP treatment has been established for the treatment costs. The foreca st includes an interfund loan of $7.5 million in 2021/22 from the TCP reserves to General Se rvices, and annual repayment of $770 thousand for the loan beginning in 2022/23 for ten years. This loan will not affect the City’s ability to treat for TCP during the term of the loan.
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AGENDA ITEM NO. 13.

Actual Actual Actual Estimated Projected Projected Projected Projected Projected 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 BEGINNING WORKING CAPITAL 22,510 26,770 27,100 22,510 19,120 18,080 17,740 17,680 18,230

REVENUES
WATER CHARGES 17,040 17,820 18,580 19,500 20,510 21,260 22,030 22,820 23,640 DBCP-LEGAL SETTLEMENTS 240 260 240 100 170 180 190 200 210 TOTAL REVENUES 17,280 18,080 18,820 19,600 20,680 21,440 22,220 23,020 23,850

EXPENDITURES
SALARIES 2,710 2,870 3,100 3,470 3,690 3,760 3,840 3,920 4,090 EXTRA HELP 0 0 10 30 30 30 30 30 30
OVERTIME 110 120 120 140 140 140 140 140 140

BENEFITS
RETIREMENT 420 520 620 740 770 790 830 820 790
HEALTH 540 560 570 660 710 760 810 870 930
OTHER 530 480 510 440 560 570 580 600 620
SERVICES, MATERIALS & SUPPLIES 8,010 8,490 14,180 12,310 11,520 11,930 12,350 12,790 13,250 MEMBRANE REPLACEMENT 280 0 300 450 0 0 1,100 0 0
TCP TREATMENT 0 100 100 100 100 1,100 100 100 100
CAPITAL OUTLAY 1,210 1,290 1,420 2,450 1,950 1,950 1,950 1,950 1,950 TOTAL EXPENDITURES 13,810 14,430 20,930 20,790 19,470 21,030 21,730 21,220 21,900

OTHER REVENUE AND EXPENSE
INTEREST/RENTAL/GRANTS 1,010 1,130 620 500 500 750 750 750 750 1,010 1,130 620 500 500 750 750 750 750
TRANSFERS-OUT (CAPITAL) 0 (3,550) (1,000) (1,000) (500) (250) (250) (250) (250) WATER BANKING LOAN TO DEV FUND 1 ,500 1 ,2500000000
INTERFUND LOAN TO GENERAL SERVICES 0 0 0 (7,500) 770 770 770 770 770 CONTRIBUTION-SURFACE WTP (750) (750) (750) (750) (750) (750) (750) (750) (750) MEMBRANE REPLACEMENT RESERVE 280 0 300 450 (100) (100) 1,100 (100) (100) RESERVE FOR DROUGHT CONTINGENCY (500) (500) (500) (500) (500) (500) (500) 0 0 RESERVE FOR SGMA (750) (1,000) (1,250) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) RESERVE FOR TCP TREATMENT 0 100 100 7,600 (670) 330 (670) (670) (670) ENDING WORKING CAPITAL 26,770 27,100 22,510 19,120 18,080 17,740 17,680 18,230 18,930 RESERVE FOR MEMBRANE REPLACEMENT 1,730 1,730 1,430 980 1,080 1,180 80 180 280 RESERVE FOR DROUGHT CONTINGENCY 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,000 8,000 RESERVE FOR SGMA 750 1,750 3,000 4,000 5,000 6,000 7,000 8,000 9,000 RESERVE FOR TCP TREATMENT 15,450 15,350 15,250 7,650 8,320 7,990 8,660 9,330 10,000

CITY OF CLOVIS
Water Enterprise - Financial Forecast (dollars in thousands) Water 2/9/2022 5:02 PM
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AGENDA ITEM NO. 13.

Bi-monthly Meter Charges: Residential - $23.90 Commercial - $19.24 Residential Usage Rates: $.98 per 1,000 gallons for 0 to 23,000 gallons, $1.63 per 1,000 gallons for 23,000 - 40,000 gallons, $2.00 per 1,000 gallons above 40,000 gallons. Dwelling unit charge $11.95 per month ($23.90 bi-monthly).

Commercial Usage Rates: $.98 per 1,000 gallons 0 to 23,000 gallons, $1.33 per 1,000 gallons over 23,000 gallons. Monthly charge from $9.62 (1") to $975.05 (10").

Current Charges: INCREASED EACH YEAR BY THE AVERAGE INCREASE OF THE PREVIOUS THREE YEARS 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Rate Increase: 7/1 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Rate Increase: 3% Based on Council approved annual rate increase unless not necessary.

Interest: 1.50% OF PREVIOUS YEAR'S WORKING CAPITAL OR A MINIMUM OF $10,000 Salaries: CPWEA 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00%
Salary Base $3,470 $3,600 $3,760 $3,840 $3,920 $4,000
Additional Employee $85 $90
Extra Help: FLAT FOR NEXT FIVE YEARS
Overtime: FLAT FOR NEXT FIVE YEARS
Retirement: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27

29.500% 28.600% 29.300% 29.900% 29.300% 27.700%
PERS Cost Sharing: -8.400% -8.400% -8.400% -8.400% -8.400% -8.400% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 10.000% FOR CPWEA 1.64% FOR ADMIN -MEDICARE 1.450% OF SALARIES
-DEF COMP/SICK LEAVE INC 5.250% OF SALARIES
Other SMS: INCREASE BY CPI FOR FUTURE YEARS 3.66%
(Increase energy cost by 50% for the Surface Water Treatment Plant operation beginning in 2004/05) Rental of the New Corp Yard-beginning 2002/03 $320 per year Capital Outlay: FOUR YEAR AVERAGE INCREASED BY CPI FOR FUTURE YEARS 3.66% Transfers Out: FOR CAPITAL CONTRIBUTIONS FOR DISTRIBUTION SYSTEM IMPROVEMENTS FOR LAND ACQUISITION DESIGN AND CONSTRUCTION OF RECHARGE FACILITIES-100% Reserves: WELLHEAD TREATMENT CONTINGENCY ESTABLISHED FOR CLEANUP OF DBCP CONTAMINATION

MEMBRANE REPLACEMENT RESERVE ESTABLISHED FOR NEW MEMBRANE COSTS

DROUGHT CONTINGENCY ESTABLISHED FOR WATER PURCHASE DURING POSSIBLE DROUGHT

TCP TREATMENT RESERVE FOR TREATMENT CAPITAL AND O&M

SUSTAINABLE GROUNDWATER MANAGEMENT ACT RESERVE
(PERS ESTIMATE)
Water Enterprise- Revenue Assumptions (dollars in dollars) Water Enterprise - Expense Assumptions (dollars in thousands) Water 2/9/2022 5:02 PM
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AGENDA ITEM NO. 13.

Sewer Enterprise
The Sewer Enterprise Fund is projected to hav e a working capital balan ce of approximately $22.5 million at June 30, 2022. The City Council approved a series of rate increase s for the
Sewer Enterprise Fund beginning August 1, 2010. Rate increases are driven by the rising cost of treatment and capital improv ements at the Regional Treatment facility as well as the increase in the costs to operate new pump stations, the Sewer Treatment Water Reuse Facility (ST-WRF), and to meet bond covenants normally borne by development fees which are projected to be insufficient to meet the City’s ob ligations in a portion of the forecast period.

Beginning in 2022/23, a 3% rate increase is incl uded in each year of the forecast period to keep up with rising operating, maintenance, and capi tal costs, and to maintain a sufficient fund balance for future bonding capacity. An interf und loan is shown beginn ing in 2023/24 of the forecast because it is projected that the collection of Development Impact fees for Sewer Major Facilities will be insufficient to cover the debt service payments. Howeve r, there are sufficient funds in the bond charge fund balance collected in prior years to continue the full $7.30 per month rebate to customers unt il 2026/27. The ability to continue to rebate funds back to ratepayers will be monitored closely throughout the forecast period. 19 128
AGENDA ITEM NO. 13.

Actual Actual Actual Estimated Projected Projected Projected Projected Projected 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 BEGINNING WORKING CAPITAL 19,510 20,830 24,820 26,260 22,560 21,550 19,290 18,240 17,850

REVENUES
SEWER CHARGES 13,150 13,470 13,540 14,280 14,830 15,490 16,170 16,870 17,590 PRETREATMENT CHARGES 30 50 50 50 50 50 50 50 50
TOTAL REVENUES 13,180 13,520 13,590 14,330 14,880 15,540 16,220 16,920 17,640

EXPENDITURES
SALARIES 860 950 1,030 1,140 1,260 1,290 1,320 1,440 1,470 EXTRA HELP 0 0 0 10 10 10 10 10 10
OVERTIME 10 10 10 20 20 20 20 20 20

BENEFITS
RETIREMENT 130 170 200 240 240 270 280 300 280
HEALTH 140 150 180 220 240 260 280 300 320
OTHER 160 160 160 140 160 200 200 220 220
SERVICES, MATERIALS & SUPPLIES 3,710 4,000 4,400 5,750 5,420 5,610 5,800 6,000 6,210 FRESNO TREATMENT PLANT 2,770 3,060 2,900 3,500 3,630 3,760 3,900 4,040 4,190 CLOVIS TRMT/REUSE PLANT (ST-WRF) 2,270 2,300 2,300 2,580 2,700 2,830 2,960 3,100 3,240 DEBT SERVICE 1,220 1 ,220 1 ,220 1 ,240 1 ,250 1 ,250000 CAPITAL 720 170 70 330 380 210 220 230 240
CAPITAL-FRESNO PLANT IMPROVEMENTS 330 320 690 3,650 2,900 2,840 1,050 410 500 TOTAL EXPENDITURES 12,320 12,510 13,160 18,820 18,210 18,550 16,040 16,070 16,700

OTHER REVENUE AND EXPENSE
INTEREST 800 860 540 510 540 500 450 440 440
GRANTS/MISC/SALE OF ASSETS/REFUNDS 330 390 430 330 80 50 50 50 50 BOND COVERAGE CHARGES/(REBATE) 880 1,850 40 0 0 0 0 0 1,850 2,010 3,100 1,010 840 620 550 500 490 2,340
TRANSFERS IN-DEBT SERVICE 430 4 30 4 30 4 30 4 30 4 30000 TRANSFERS OUT-CAPITAL 0 (250) (200) 0 00000
FROM DEVELOPER-PLANT CAPITAL IMPROV 220 400 270 270 270 270 270 270 270 INTERFUND (LOANS)/REPAYMENT (1,700) (200) 0 0 0 (1,500) (1,500) (1,500) (1,500) (INC)/USE OF FRESNO PLANT CAP RESERVE (500) (500) (500) (750) 1,000 1,000 (500) (500) (500) ENDING WORKING CAPITAL 20,830 24,820 26,260 22,560 21,550 19,290 18,240 17,850 19,400 RESERVE FOR FRESNO PLANT CAPITAL 1,000 1,500 2,000 2,750 1,750 750 1,250 1,750 2,250 RESERVE FOR RATE STABILIZATION 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

CITY OF CLOVIS
Sewer Enterprise - Financial Forecast (dollars in thousands) Water 2/24/2022 10:00 AM
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AGENDA ITEM NO. 13.

Current Charges: Population New Units Additional Residential: 2019/20 Per Unit Bond Charge Per Pretreatment Per Increase Per Year Commercial Per Month Unit Per Month Unit Per Month 2,200 800 $42,000 $22.11 $7.30 $0.06
Rate Rebate: $(7.30) Beginning FY 20/21
Rate Increase:* 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Percentage 0.00% 3.00% 3.00% 3.00% 3.00% 3.00%
Revised Monthly Rate $22.11 $22.77 $23.46 $24.16 $24.88 $25.63 Interest: 1.50% OF PREVIOUS YEAR'S WORKING CAPITAL
* Rate Increase: Note: The Council can approve up to a 3% annual rate increase if deemed necessary.

Salaries: (CPWEA) 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00%
SALARY BASE $1,140 $1,180 $1,290 $1,320 $1,350 $1,470
Additional employee $85 $90
Extra Help: FLAT FOR NEXT FIVE YEARS
Overtime: FLAT FOR NEXT FIVE YEARS
Retirement: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27

29.500% 28.600% 29.300% 29.900% 29.300% 27.700%
PERS Cost Sharing: -8.400% -8.400% -8.400% -8.400% -8.400% -8.400% Health: INCREASE PER YEAR 7.00%
Other Benefits: -RETIREMENT 29.500% OF EXTRA HELP
-WORKERS COMP 10.000% FOR CPWEA 1.64% FOR ADMIN
-MEDICARE 1.450% OF SALARIES
-DEF COMP/SICK LEAVE INC/OTHER 5.250% OF SALARIES
Other SMS: INCREASE BY AVERAGE CPI FOR PREVIOUS 3 YEARS 3.66% Rental of the New Corp Yard-Beginning in 2002/03 $320
Clovis Treatment/Reuse Plant Operations-Beginning 1/1/2009 $1,000 Regional Treatment Plant: Annual payment for original plant buy-in plus O&M costs.

Adjusted for average 3 year CPI and per capita amount 3.66% Debt Service: Fresno/Clovis Regional WWTP Renovation
96/97 - 2023 $1,250
Capital Outlay: FUTURE YEARS @ $200
- ADJUSTED BY 3 YEAR AVERAGE CPI 3.66%
Cap-Plant Improvements: Based on estimates from the City of Fresno for sewer main and plant refurbishments Transfers In-Debt Service: In from Ma
jor Facilities-34.57% of debt service for 1993 WWTP Renovation $427 Transfers Out: Out for on-going capital improvements-per Five Year CIP Interfund Loans: Temporary cash loans to conform with various bond covenants (PERS ESTIMATE)
Sewer Enterprise -Revenue Assumptions (dollars in dollars) Sewer Enterprise -Expense Assumptions (dollars in thousands) Sewer 2/9/2022 4:58 PM
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AGENDA ITEM NO. 13.

Community Sanitation Enterprise

The Community Sanitation Enterprise Fund is proj ected to finish the current fiscal year with a working capital balance of approximately $10 m illion at June 30, 2022. A 4% annual increase, or portion thereof, was approved by Council in November 2004 to be implemented as necessary. In 2021/22, the Council implemented a re fuse rate increase of 3%. A decrease of

1.5% is recommended in 2022/23 and increases of 4% are projected thereafter for the remainder of the forecast period. To keep pace with the recycling and green waste contract increases, the approved 4% annual increase is pr ojected for these operat ions. In 2021/22, Council approved a $0.50 rate increase for Str eet Sweeping charges in the City of Clovis Municipal Code resulting in a new rate of $2.75 per month beginning July 1, 2022. The forecast reflects an increase in closure and pos t closure costs identified in the revised Joint Technical Document (JTD) dated March 2017 pr epared in agreement with the California Department of Resources Recycling and Recovery (CalRecycle) and the California Regional Water Quality Control Board (RWQCB).

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AGENDA ITEM NO. 13.

Actual Actual Actual Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 BEGINNING WORKING CAPITAL 12,940 13, 860 12,420 13,520 10,300 6,910 6,590 9,180 6,780

REVENUES
REFUSE CHARGES 14,990 15,390 16,510 17,250 17,390 18,250 19,150 20,090 21,070 RECYCLING CHARGES 1,720 1,780 1,880 1,920 2,130 2,230 2,340 2,450 2,570 GREEN WASTE CHARGES 2,080 2,220 2,380 2,360 2,480 2,610 2,750 2,890 3,040 STREET SWEEPING CHARGES 1,180 1,210 1,250 1,260 1,530 1,600 1,680 1,760 1,840 TOTAL REVENUES 19,970 20,600 22,020 22,790 23,530 24,690 25,920 27,190 28,520

EXPENDITURES
SALARIES 3,180 3,380 3,660 4,120 4,450 4,530 4,620 4,710 4,800 EXTRA HELP 60 40 90 130 130 130 130 130 130
OVERTIME 330 380 370 410 410 410 410 410 410

BENEFITS
RETIREMENT 500 630 740 890 880 950 990 980 930
HEALTH 670 710 780 890 950 1,020 1,090 1,170 1,250
OTHER 700 610 660 600 710 720 730 750 760
SERVICES, MATERIALS & SUPP. 8,380 8,670 8,630 11,100 10,510 10,890 11,290 11,700 12,130 RECYCLING 1,470 1,540 1,640 1,750 1,810 1,870 1,930 1,990 2,050 GREEN WASTE PROGRAM 1,770 1,860 1,920 2,000 2,070 2,140 2,210 2,280 2,360 STREET SWEEPING 1,730 1,700 1,580 1,730 1,790 1,860 1,930 2,000 2,070 LANDFILL CLOSURE 260 240 340 290 300 310 320 330 340
CAPITAL 1,180 1,890 800 1,740 1,190 500 500 500 500
LANDFILL IMPROVEMENTS 80 900 60 730 2,230 200 2,700 2,700 200 LANDFILL DEBT SERVICE 0000 000 5 00 5 00
TOTAL EXPENDITURES 20,310 22,550 21,270 26,380 27,430 25,530 28,850 30,150 28,430

OTHER REVENUE AND EXPENSE
INTEREST 300 320 150 100 240 200 200 240 210
GRANTS/MISC/SALE OF ASSETS 80 40 50 120 120 120 120 120 120 380 360 200 220 360 320 320 360 330
TRANSFERS 880 150 150 150 150 200 5,200 200 200
ENDING WORKING CAPITAL 13,860 12,420 13,520 10,300 6,910 6,590 9,180 6,780 7,400 RESERVE FOR CLOSURE 4,040 4,280 4,620 4,910 5,210 5,520 5,840 6,170 6,510 RESERVE FOR LIABILITY INS 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Note: Maintain minimum ending working capital at 15% of expenditures or the bond covenant requirements.

CITY OF CLOVIS
Community Sanitation - Financial Forecast (dollars in thousands) Refuse and Street Cleaning 2/10/2022 8:55 AM
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AGENDA ITEM NO. 13.

Current Charges: New Units 20/21 Avg Unit Recycling Green Waste Street Cleaning Per Year Per Month Per Month Per Month Per Month
800 $25.81 $4.26 $6.25 $2.25
Additional Commercial Annual Revenue ----------------------------> $35,000 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27
Rate Increase/(Decrease): 7/1 3.0% -1.5% 4.0% 4.0% 4.0% 4.0% Adjusted Monthly Rate: $25.81 $25.42 $26.44 $27.50 $28.60 $29.74 Rate Increase: Based on Council approved 4% annual rate increase unless not necessary.

Green Waste/Recycling: Based on current year charges, increased by new unit growth and projected rate increases of 4% per year.

Street Cleaning: Based on charge of $2.75 effective July 1, 2022, increased by new unit growth and projected rate increases of 4% per year.

Interest: 1.50% OF PREVIOUS YEAR'S WORKING CAPITAL
Salaries: (CPWEA) 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00%
Salary Base: $4,120 $4,360 $4,530 $4,620 $4,710 $4,800
Additional Personnel: Res/Comm $85
Extra Help: $90 for Operations per year
Overtime: FLAT FOR FUTURE YEARS
Retirement: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27

29.500% 28.600% 29.300% 29.900% 29.300% 27.700%
PERS Cost Sharing: -8.400% -8.400% -8.400% -8.400% -8.400% -8.400% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 10.000% FOR CPWEA 2.00% FOR ADMIN -MEDICARE 1.450% OF SALARIES
-DEF COMP/SICK LEAVE/OTHER 5.250% OF SALARIES
Other SMS: INCREASE BY AVERAGE CPI FOR PREVIOUS 3 YEARS 3.66% Rental of the Corp Yard beginning 2002/03 $320 per year Capital Outlay: Flat for future years $500
Adjusted by 3 year average CPI 3.66%
Transfers: In-For Toters $200 /year
Reserve For Closure: FROM 98/99, INCREASE BY 3 YEAR AVERAGE CPI 3.66% Landfill Debt Service: Debt service for landfill expansion bond beginning 2025/26 $500 (PERS ESTIMATE)
Community Sanitation - Revenue Assumptions (dollars in dollars) Community Sanitation - Expense Assumptions (dollars in thousands) Refuse and Street Cleaning 2/10/2022 8:55 AM
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AGENDA ITEM NO. 13.

Transit Enterprise

The Transit Fund shows no net position in t he near-term because of the revenue recognition policy change for the Transport ation Development Act (TDA) funds that include Local Transportation Funds (LTF) and State Transit Assistance (STA). These TDA funds are required to be deferred until the funds are spent. The deferral is projected to decline in fiscal year’s 2021/22 and 2022/23 due to the construction of a transit c enter. Starting in the fiscal year 2024/25, the deferred revenue is project ed to increase and to be spent on future operating and capital needs. With funding for Transit constantly in flux due state and local revenues and budgeting, the types and levels of funding will be closely monitored to make any necessary adjustments to current service levels should the need arise. 27 136
AGENDA ITEM NO. 13.

Actual Actual Actual Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 BEGINNING WORKING CAPITAL 240 60 (150) 320000 0 0

REVENUES
MEASURE C FUNDS 1,540 1,520 1,820 1,690 1,750 1,820 1,890 1,960 2,030 LOCAL TRANSPORTATION FUNDS (LTF) 4,160 4,320 4,250 5,020 4,990 5,040 4,910 5,090 5,280 STATE TRANSIT ASSISTANCE (STA) 1,290 200 2,870 930 1,490 1,060 880 870 760 OTHER (Fares, Advertising, Trolley Rents) 190 190 0 40 40 40 40 40 40 TOTAL REVENUES 7,180 6,230 8,940 7,680 8,270 7,960 7,720 7,960 8,110

EXPENDITURES
SALARIES 1,410 1,440 1,540 1,760 1,850 1,890 1,930 1,970 2,010 EXTRA HELP 890 970 940 1,030 1,030 1,070 1,110 1,150 1,190 OVERTIME 70 50 40 70 70 80 90 100 120

BENEFITS
RETIREMENT 220 270 310 370 370 400 410 410 390
HEALTH 300 320 330 390 420 450 480 510 550
OTHER 520 510 530 560 490 530 550 560 550
SERVICES, MATERIALS & SUPPLIES 2,880 2,470 2,390 2,880 2,860 3,040 3,150 3,260 3,300 CAPITAL-OTHER 90 410 220 260 600 0 0 0 0
CAPITAL-BUSES 1,020000 5 00 5 000 0 0
TOTAL EXPENDITURES 7,400 6,440 6,300 7,320 8,190 7,960 7,720 7,960 8,110

OTHER REVENUE AND EXPENSE
INTEREST/GRANTS/MISC 40 50 490 220 520 0 0 0 0
40 50 490 220 520 0 0 0 0
TRANSFERS (TRANSIT STATION) 0 (50) (2,660) (900) (600) 0 0 0 0 ENDING WORKING CAPITAL 60 (150) 32 00000 0 0
DEFERRED REVENUE 3,290 5,200 4,050 3,260 1,850 1,470 1,600 1,780 2,110

CITY OF CLOVIS
Transit - Financial Forecast (dollars in thousands)
Transit 2/14/2022 4:27 PM
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AGENDA ITEM NO. 13.

Transit Revenue: Measure C revenue is projected to grow by the prior 3 year average increase in revenue 3.77% LTF revenue is projected to grow by the 3 year average CPI 3.66% Other revenue is projected to grow by the 3 year average CPI 3.66% Interest: 1.50% OF PREVIOUS YEAR'S WORKING CAPITAL
Deferred Revenue: REVENUE RECEIVED AND NOT SPENT
Salaries: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00%
Salary Base: $1,760 $1,850 $1,890 $1,930 $1,970 $2,010
Additional Personnel:

Extra Help: INCREASE 5% PER YEAR FOR ADDITIONAL DEMAND IN ROUNDUP TRANSIT SERVICES Overtime: INCREASE BY PREVIOUS THREE YEAR CPI 3.66%
Retirement: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27

29.500% 28.600% 29.300% 29.900% 29.300% 27.700%
PERS Cost Sharing: -8.400% -8.400% -8.400% -8.400% -8.400% -8.400% Health: INCREASE PER YEAR 7.00%
Other Benefits: -WORKERS COMP 9.57% OF SALARIES 1.64% FOR ADMIN -MEDICARE 1.45% OF SALARIES and EXTRA HELP
-DEFERRED COMP/SICK LEAVE INCENTIVE/OTHER 5.45% OF SALARIES Other SMS: INCREASE BY AVERAGE PREVIOUS 3 YEAR CPI 3.66% Capital Outlay: BASED ON BEST ESTIMATES FOR BUSES AND OTHER ADJUSTED BY 3 YEAR AVERAGE CPI 3.66%
(PERS ESTIMATE)
State Transit Assistance, for fiscal years 2019/20 through 2022/23, a transit agency may expend funds apportioned on any operating or capital costs to maintain transit service levels.

Transit- Revenue Assumptions
Transit- Expense Assumptions
Transit 2/14/2022 4:27 PM
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AGENDA ITEM NO. 13.

Planning and Development Services Enterprise

The Planning and Developm ent Services (PDS) Department transitioned into an Enterprise Fund in 2012/13. This allows for services to be adjusted as demand fluctuates. The 2022/23 forecast estimates 800 units (600 single-family/200 multi-family) to be constructed; this is consistent with our historical av erage of 800 units per year. Commer cial activity is expected to be less than in recent years but still trending hi gher than our historical average. The Building Division revenue fluctuates based on construction va luation of the different projects; dwelling unit numbers are just one indicato r. The PDS Department is projected to finish the 2021/22 fiscal year with a working capital balance of approx imately $9.7 million. In addition, if needed, PDS can shift staff resources from its Development Re view Unit to its Community Investment Unit, should development activity dramatically slow down. The fo recast reflects that the PDS Department will continue to maintain a prudent rese rve that allows for immediate adjustments, should they become necessary.

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AGENDA ITEM NO. 13.

CITY OF CLOVI
S
Planning & Development Services - Financial Forecast (dollars in thousands) RESIDENTIAL UNITS PER YEAR 848 1,119 1,238 800 800 800 800 800 800 Actual Actual Actual Estimated Pro jected Pro jected Pro jected Pro jected Pro jected 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 BEGINNING WORKING CAPITAL 6,960 7,660 9,090 10,080 9,660 10,050 10,780 11,560 12,620

REVENUES
BUILDING PERMITS 3,260 3,830 4,020 3,570 4,520 4,690 4,860 5,040 5,220 PLANNING FEES 1,730 1,800 1,870 1,560 1,850 1,920 1,990 2,060 2,140 GENERAL PLAN CONSULTANT 170 260 250 450 1,690 1,930 2,130 1,030 830 ENGINEERING FEES 2,730 3,160 2,580 2,760 2,940 3,050 3,160 3,280 3,400 CAPITAL IMPROVEMENT CHARGES 2,600 2,650 2,500 2,690 3,450 3,580 3,710 3,850 3,990 TOTAL REVENUES 10,490 11,700 11,220 11,030 14,450 15,170 15,850 15,260 15,580

EXPENDITURES
SALARIES 4,490 5,040 5,080 5,230 5,860 5,980 6,100 6,220 6,340 EXTRA HELP 440 350 190 110 120 120 120 120 120
OVERTIME 120 140 70 90 90 90 90 90 90

BENEFITS
RETIREMENT 700 900 970 1,150 1,210 1,270 1,340 1,330 1,250 HEALTH 850 850 780 930 1,080 1,160 1,240 1,330 1,420
OTHER 480 490 460 480 540 560 580 600 620
SERVICES, MATERIALS & SUPPLIES 2,720 2,600 2,940 3,810 3,710 3,850 3,990 4,140 4,290 GENERAL PLAN CONSULTANT 170 260 250 450 1,690 1,930 2,130 1,030 830 C A P I T A L 4 0 1 0 2 03 03 01 01 01 01 0
TOTAL EXPENDITURES 10,010 10,640 10,760 12,280 14,330 14,970 15,600 14,870 14,970

ADDITIONAL ITEMS
INTEREST 230 270 150 90 90 150 160 170 190
OTHER REVENUES/GRANTS 50 70 310 430 250 200 200 200 200 TRANSFERS FROM GENERAL FUND 300 300 300 310 300 300 300 300 300 TOTAL ADDITIONAL ITEMS 580 640 760 830 640 650 660 670 690 NET INC/(DEC) TO WORKING CAPITAL 1,060 1,700 1,220 (420) 760 850 910 1,060 1,300

OTHER ITEMS
(USE OF)/ADDITION TO EMERGENCY RESERVE 360 270 230 0 370 120 130 0 0 ENDING WORKING CAPITAL 7,660 9,090 10,080 9,660 10,050 10,780 11,560 12,620 13,920 Emergency Reserve - (Dollars) 2,000 2,270 2,500 2,500 2,870 2,990 3,120 3,120 3,120 Emergency Reserve as a % of Expenditures 20.0% 21.3% 23.2% 20.4% 20.0% 20.0% 20.0% 21.0% 20.8% Planning Development Services 2/24/2022 10:10 AM
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AGENDA ITEM NO. 13.

Planning & Development Services - Revenue Assumptions (dollars in dollars ) 2020/21 (Act.) 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Residential Units Per Year: 1,238 800 800 800 800 800 800 Non-Residential %: 21% 21% 25% 30% 30% 30% 30%
Averages based on two years actuals and estimate to close Average Permit Fees Per Unit: Building Planning Engineering $3,100 $1,400 $2,300
3 Year Average CPI: 3.66%
2020/21 (Act.) 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 Planning Program Fee (Staff): $1,290,000 $920,000 $1,200,000 $1,320,000 $1,340,000 $1,370,000 $1,420,000 Plan. Prgm. Fee (Consultant): $250,000 $450,000 $1,690,000 $1,930,000 $2,130,000 $1,030,000 $830,000 Other Planning Fees: $580,000 $640,000 $650,000 $600,000 $650,000 $690,000 $720,000 Total FY $2,120,000 $2,010,000 $3,540,000 $3,850,000 $4,120,000 $3,090,000 $2,970,000 Capital Improvement Charges: BASED ON HOURLY RATE CHANGES (AS NEEDED) Interest: 1.50% OF PREVIOUS YEAR'S WORKING CAPITAL
Other Revenues: INCREASE BY AVERAGE CPI FOR PREVIOUS 3 YEARS 3.66% Grants: BASED ON AWARDED GRANTS
Planning & Development Services - Expense Assumptions (dollars in thousands) Salaries: (CPTA) 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 7/1 2.00% 3.66% 2.00% 2.00% 2.00% 2.00%
Salary Base: $5,650 $5,860 $5,980 $6,100 $6,220 $6,340
Additional Personnel:

Extra Help: $110 $120 $120 $120 $120 $120
Overtime: INCREASE BY AVERAGE CPI FOR PREVIOUS 3 YEARS 3.66% Retirement: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27

29.500% 28.600% 29.300% 29.900% 29.300% 27.700%
PERS Cost Sharing: -8.400% -8.400% -8.400% -8.400% -8.400% -8.400% Health: INCREASE PER YEAR 7.00%
Other Benefits: INCREASE BY AVERAGE CPI FOR PREVIOUS 3 YEARS 3.66% Other SMS: INCREASE BY AVERAGE CPI FOR PREVIOUS 3 YEARS 3.66% General Plan Consultant: 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 General Plan Update $75 $1,250 $1,000 $750 $0 $0
Misc. Services (Legal, Housing, Design, Engr) $225 $225 $230 $230 $230 $230 Specific Plan/Master Plan Prep/Updates $0 $0 $450 $850 $300 Utility Plans & Engineering Studies $150 $100 $100 $100 $100 $100 Planning Studies Guidelines $0 $115 $150 $200 $400 $500 Total FY $450 $1,690 $1,930 $2,130 $1,030 $830
Capital Outlay: BASED ON CAPITAL NEEDS PROJECTED FOR DEPARTMENT Transfers: GENERAL FUND DISCRETIONARY FUNDING $300 PER YEAR (PERS ESTIMATE)
Planning Development Services 2/14/2022 4:35 PM
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AGENDA ITEM NO. 13.

INTERNAL SERVICE FUNDS

The Internal Service Fund group is projected to be self-balanc ing throughout the Five-Year Forecast. Since the Internal Service Fund gr oup is funded by charges to the operating funds, issues that will affect the Internal Service F unds are dealt with in conjunction with analysis of the impact on the operating funds. Each of the funds within the Internal Service Fund group is continually reviewed to determine where more cost-effective programs and services can be utilized, and expenditure reductions have been made in recent years to reduce the impact of cost sharing on all other City operations.

DEBT SERVICE FUNDS

The Debt Service Fund group, out of necessity and legal obligation, will be fully funded in order to make the required debt payments.

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