Colfax City Council Meetings are ADA compliant. If you need disability-related modification or accommodation including auxiliary aids or services to participate in this meeting, please contact the City Clerk at (530) 346-2313 at least 72 hours prior to make arrangements for ensuring your accessibility.
January 25, 2023
City Council Meeting
COUNCIL CHAMBERS, 33 SOUTH MAIN STREET, COLFAX, CA
Mayor Trinity Burruss ⋅ Mayor Pro Tem Marnie Mendoza
Councilmembers ⋅ David Ackerman ⋅ Kim Douglass ⋅ Sean Lomen
REGULAR MEETING AGENDA
January 25, 2023
Regular Session: 6:00 PM
This Regular Meeting of the City Council is being held pursuant to Government Code Section 54953(e) which authorizes meetings to be held by teleconference. The Governor’s proclaimed state of emergency remains in effect and the City Council has made or will make the legal findings necessary to hold meetings by teleconference.
You may access the meeting and address the Council by any of the following means:
ZOOM at
https://us02web.zoom.us/j/83951771683
Dial in by calling one of the numbers listed below and enter the Webinar ID:
839 5177 1683
1 (669) 900-6833 1 (346) 248-7799 1 (312) 626-6799
1 (929) 205-6099 1 (253) 215-8782 1 (301) 715-8592
Facebook Live on our City of Colfax page: City of Colfax, California. You may also submit written comments to the City Clerk via email at city.clerk@colfaxca.gov, via regular mail to P.O. Box 702, Colfax CA 95713, or by dropping them off at City Hall, 33 S. Main Street, Colfax CA 95713. Comments received will be submitted to Council and made a part of the record.
1 CLOSED SESSION (No Closed Session)
2 OPEN SESSION
2A. Call Open Session to Order
2B. Report from Closed Session
2C. Pledge of Allegiance
2D. Roll Call
2E. Approval of Agenda Order
Thisisthe time for changesto the agenda to be considered including removal, postponement, or change to the agenda sequence.
Recommended Action: By motion, accept the agenda as presented or amended. 3 CONSENT CALENDAR
1 Colfax City Council Meetings are ADA compliant. If you need disability-related modification or accommodation including auxiliary aids or services to participate in this meeting, please contact the City Clerk at (530) 346-2313 at least 72 hours prior to make arrangements for ensuring your accessibility.
January 25, 2023
Matters on the Consent Calendar are routine in nature and will be approved by one blanket motion with a Council vote. No discussion of these items ensues unless specific items are pulled for discussion and separate action. If you wish to have an item pulled from the Consent Agenda for discussion, please notify the Mayor.
Recommended Action: Approve Consent Calendar
3A. Minutes (Pages 4-6)
Recommendation: By Motion, approve the Colfax City Council minutes of 1/11/2023. 3B. Cash Summary – December 2022 (Pages 7-14)
Recommendation: Accept and File.
3C. Second Reading of the EV Charging Ordinance (Pages 15-24) Recommendation: Waive the second reading and adopt Ordinance 551 establishing procedures for expediting the permit process for electric vehicle charging stations, to be effective 30 days after adoption.
3D. Metal Storage Buildings Procurement and Installation (Pages 25-38) Recommendation: Adopt Resolution __-2023 authorizing the City Manager to execute a purchase agreement with Viking Steel Structures for the procurement and installation of metal equipment storage buildings at the Public Works Corporation Yard and Waste Water Treatment Plant, with a not to exceed amount of $38,481.
*** End of Consent Calendar ***
4 AGENCY REPORTS
4A. Placer County Sheriff Department
4B. CHP
4C. Placer County Fire Department/CAL FIRE
4D. Non-Profits
5 PRESENTATION (No Presentation)
6 PUBLIC HEARING (No Public Hearing)
7 PUBLIC COMMENT
Members of the public are permitted to address the Council orally or in writing on matters of concern to the public within the subject matter jurisdiction of the City that are not listed on this agenda. Please make your comments as succinct as possible. Oral comments made at the meeting may not exceed five (5) minutes per speaker. Written comments should not exceed 800 words. Written comments received before the close of an agenda item may be read into the record, with a maximum allowance of five (5) minutes in length. Council cannot act on items not listed on this agenda but may briefly respond to statements made or questions posed, request clarification, refer the matter to staff, or place the matter on a future agenda.
2 Colfax City Council Meetings are ADA compliant. If you need disability-related modification or accommodation including auxiliary aids or services to participate in this meeting, please contact the City Clerk at (530) 346-2313 at least 72 hours prior to make arrangements for ensuring your accessibility.
January 25, 2023
I, Marguerite Bailey, City Clerk for the City of Colfax, declare that this agenda was posted in accordance with the Brown Act at Colfax City Hall and Colfax Post Office. The agenda is also available on the City website at http://colfax-ca.gov/
Marguerite Bailey, City Clerk
Administrative Remedies must be exhausted prior to action being initiated in a court of law. If you challenge City Council action in court, you may be limited to raising only those issues you or someone else raised at a public hearing described in this notice/agenda, or in written correspondence delivered to the City Clerk of the City of Colfax at, or prior to, said public hearing. 8 COUNCIL AND STAFF
The purpose of these reports is to provide information to the Council and public on projects, programs, and issues discussed at committee meetings and other items of Colfax related information. No decisions will be made on these issues. If a member of the Council prefers formal action be taken on any committee reports or other information, the issue will be placed on a future Council meeting agenda.
8A. Committee Reports and Colfax InformationalItems – All Councilmembers 8B. City Operations Update – City Manager
9 COUNCIL BUSINESS
9A. City of Colfax Audit Report as of Fiscal Year Ended June 30, 2022 (Pages 39-110) Presentation by: Ingrid Sheipline, Managing Partner (Richardson and Co.), Auditor Recommendation: Accept and receive Fiscal year Ended June 30, 2022 Audit Report. 9B. Short-Term Rentals (Page 111)
Presentation by: Emmanuel Ursu, Planning Director
Recommendation: Provide staff direction on whether to prepare a draft ordinance to allow shortterm rentals. 9C. Council Committee Assignments (Pages 112-117)
Presentation by: Wes Heathcock, City Manager
Recommendation: Approve City Council Committee Assignments for 2023. 10 GOOD OF THE ORDER
Informal statements, observation reports and inquiries regarding the business of the City may be presented by Councilmembers under this agenda item or requests for placement of items of interest on a future agenda. No action will be taken.
11 ADJOURNMENT
3 Minutes 1/11/2023
City Council Minutes
Regular Meeting of Colfax City Council
Wednesday, January 11, 2023
City Hall Council Chambers, 33 S Main Street,
Colfax CA and attended via Teleconference through ZOOM
1 CLOSED SESSION
1A. Call Closed Session to Order
1B. Roll Call
1C. Closed Session:
(a) Conference with Legal Counsel – Anticipated Litigation. Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): One potential case. 2 OPEN SESSION
2A. CallOpen Session to Order - Mayor Burruss called the open session to order at 6:02 pm. 2B. Report from Closed Session – Mayor Burruss provided an update from the Closed Session and stated that City Council decided unanimously to pursue litigation. 2C. Pledge of Allegiance
2D. Roll Call
Present: Councilmember Lomen, Councilmember Ackerman, Councilmember Douglass, Mayor Pro Tem Mendoza, Mayor Burruss
2E. Approval of the Agenda Order
By MOTION, accept the agenda as presented.
MOTION made by Councilmember Ackerman and seconded by Councilmember Lomen, and approved by the following vote:
AYES: Lomen, Ackerman, Douglass, Mendoza, Burruss
NOES:
ABSTAIN:
ABSENT:
3 CONSENT CALENDAR
3A. Authorize Remote Teleconference Meetings Pursuant to Government Code Section 54953(e) [AB 361]
Recommendation: Adopt Resolution 01-2023 authorizing remote teleconference meetings pursuant to Government Code Section 54953(e) [AB 361].
3B. Minutes
Recommendation: By Motion, approve the Colfax City Council minutes of 12/14/2022. 3C. Quarterly Sales Tax Analysis – Quarter Ended September 30, 2022 Recommendation: Accept and File.
3D. Cash Summary - November 2022
Recommendation: Accept and File.
3E. Authorization to Bid – Algae Control Project and I & I Mitigation Project Recommendation: Adopt Resolution 02-2023 authorizing the City Manager to solicit bids for construction of the following:
3A
4 Minutes 1/11/2023
1. Algae Control Project with a construction cost estimate of $3,150,000.
2. I&I Mitigation Project with a construction cost estimate of $4,624,000. 3F. Notice of Completion – Colfax Hospitality Partners LLC, Best Western Hotel Project Recommendation: Adopt Resolution 03-2023 accepting the Colfax Hospitality Partners LLC, Best Western Hotel Project as complete, authorizing discharge of faithful performance security, and authorizing the recording of the Notice of Completion.
3G Notice of Completion - Lift Station 5 Force Main Improvement Project Recommendation: Adopt Resolution 04-2023 accepting the Lift Station 5 Force Main Improvement Project as complete and authorizing the recording of the Notice of Completion. 3H. Agreement with Pelayo Construction for City Facility Repairs Recommendation: Adopt Resolution 05-2023 authorizing the City Manager to enter into an agreement with Pelayo Construction for City facility repairs in an amount not to exceed $19,380. ***End of Consent Calendar***
By MOTION, approve the consent calendar.
MOTION made by Councilmember Lomen and seconded by Councilmember Ackerman, and approved by the following vote:
AYES: Lomen, Ackerman, Douglass, Mendoza, Burruss
NOES:
ABSTAIN:
ABSENT:
4 AGENCY REPORTS
4A. Placer County Sheriff Office – Deputy Tannarome provided arrest reports for the City. 4B. CHP – Public Information Officer Jason Lyman spoke about weather conditions and its impact on drivers and the increase of collisions.
4C. Placer County Fire/CALFIRE – Assistant Chief Bob Counts spoke about winter storm preparations. Battalion Chief Jeff Loveless also spoke about weather conditions and provided response statistics. He spoke about the cooperation between public safety agencies and also spoke about the process to become a volunteer firefighter when asked about the process by local resident, Tim Dion. Tom Parnham expressed thanks to CAL FIRE for their fast response helping his neighbor and for their professionalism.
4D. Non-Profits – Superintendent Andy Giannini spoke about the new School Board members, enrollment and a new website. Mayor Pro Tem Mendoza, Councilmember Lomen and Councilmember Ackerman all thanked him for his leadership. 5 PRESENTATION (None)
6 PUBLIC HEARING
1. Presentation by Staff
2. Open the Public Hearing
3. Presentation, when applicable, by Applicant
4. Accept Public Testimony
5. When applicable, Applicant rebuttal period
6. Close Public Hearing (No public comment is taken, hearing is closed)
7. Council comments and questions
8. City Council Action
6A. Ordinance Amending Colfax Municipal Code Title 15 By Adding Chapter 15.40 To Establish Procedures for Expediting the Permit Process for Electric Vehicle Charging Stations.
Recommendation: Introduce the proposed ordinance by title only, conduct a public hearing, waive the first reading and schedule the proposed ordinance for adoption at the next regular City Council 3A
5 Minutes 1/11/2023
meeting currently scheduled for January 25, 2023, to be effective 30 days after adoption. City Attorney Cabral explained the background behind the ordinance and presented an overview. Tim Dion asked about private entities charging for electric vehicle charging stations in the future.
By MOTION, approve the consent calendar.
MOTION made by Councilmember Lomen and seconded by Councilmember Douglass, and approved by the following vote:
AYES: Lomen, Ackerman, Douglass, Mendoza, Burruss
NOES:
ABSTAIN:
ABSENT:
7 PUBLIC COMMENT
Business owner, Jim Dion spoke about cannabis and the City. Resident, Harry Anderson spoke about road conditions in the City. Public Works Director, Martin Jones explained how repairs are prioritized and performed. Tim Dion spoke about adult use and medicinal usage cannabis regulations and provided documents pertaining to licensing and state laws for review. City Council decided to place an item on an upcoming agenda to review the City of Colfax’s current ordinance compliance with State law. Mark Riffey, Pioneer Energy Director of Public Affairs provided a presentation about energy services that are provided to the community and expressed thanks and awareness for utility line worker safety. Diane Greene expressed her concerns with cannabis usage and read from an article called “Stoned California Seniors Headed to ERs By the Thousands, UCSD Study Says”.
Melinda Neely asked for people to do their own research on cannabis. Jane Gallagher asked if the cannabis ordinance was outdated. Tom Parnham inquired about the status of the historic hotel. 8 COUNCIL AND STAFF
8A. Committee Reports and Colfax Informational Items – All Councilmembers – No Committee reports from Council.
8B. City Operations Update – City Manager – City Manager Heathcock provided an update on the historic hotel downtown and stated that staff is reviewing the hotel’s building improvement plans. 9 COUNCIL BUSINESS (No Council Business)
10 GOOD OF THE ORDER
Councilmember Douglass announced that Hansen Brothers, a local landscaping supply company was closing. Mayor Burruss and Councilmember Lomen discussed the property and traction on the acquisition of Railroad Street.
11 ADJOURNMENT
As there was no further business on the agenda, Mayor Burruss adjourned the meeting, by motion and without objection at 7:14 pm. Respectfully submitted to City Council this 25th day of January, 2023.
Marguerite Bailey, City Clerk
3A
6 City of Colfax Cash Summary – December 2022
Staff Report January 25, 2023
Staff Report to City Council
FOR THE JANUARY 25, 2023 REGULAR CITY COUNCIL MEETING
From: Wes Heathcock, City Manager
Prepared by: Laurie Van Groningen, Finance Director
Subject: Cash Summary – December 2022
Budget Impact Overview:
N/A: √ Funded: Un-funded: Amount: Fund(s):
Summary/Background
The monthly financial report includes General Fund Reserved Cash Analysis Graphs and the City of Colfax Cash Summary Report (with supporting documentation). The purpose of these reports is to provide the status of funds and transparency for Council and the public of the financial transactions of the City. The reports are prepared monthly on a cash basis and are reconciled to the General Ledger accounting system, previous reports, and bank statements. Detailed budget comparisons are provided as a mid-year report and as part of the proposed budget process each year.
The attached reports reflect an overview of the financial transactions of the City of Colfax in December 2022.
Some monthly highlights are listed below:
December revenues included:
o Allocation for Sales Tax revenues reported/paid to the State for the month of October 2022 (twomonth lag). December expenditures included:
o Ongoing monthly operating expenses
o Quarterly payment for Sheriff services
o Approved capital project expenditures – significant expenditures on WWTP Construction Grant. Negative cash fund balances at the end of December are due to timing of funding allocations and reimbursements:
o Fund 218 – Support Law Enforcement – These expenses are funded by COPS (Citizens Options Public Safety) grant. Negative balance due to timing differences of receipts and expenses. o Fund 250 – Streets – Roads/Transportation. These expenses are funded by annual Transportation funding through Placer County Transportation Agency (PCTPA), City Gas Tax revenues, and a General Fund allocation. PCTPA Funding request was submitted in October (approved by Council on 09/28/22).
o Fund 358 – CDBG Road Rehabilitation. This is a reimbursable grant – final funding of grant is still pending. CDBG has approved start date of expenditures. Any unfunded expenditures would require allocation from General Fund.
o Fund 367 – SB2 Planning Grant – this is a reimbursable grant. Second round of Reimbursement requests were submitted in February and are still pending. HCD has been backlogged and recently RECOMMENDED ACTION: Accept and File.
3B7
City of Colfax Cash Summary – December 2022
Staff Report January 25, 2023
confirmed requests are approved and pending payment. Next reimbursement request scheduled to completed and submitted in January depending on project activity. o Fund 376 – Downtown Streetscape – This project is primarily (89%) funded with grant funds on a reimbursement basis. Reimbursement requests expected to be submitted on a quarterly basis.
The second reimbursement request was submitted in December and is pending payment. The balance of funding (11%) will be a City General Fund match. o Fund 378 – Zoning Code Update. This project is 100% funded with grant funds on a reimbursement basis. Reimbursement requests expected to be submitted on a quarterly basis. The first request was submitted in August and received in October. Next reimbursement request scheduled to completed and submitted in January depending on project activity. o Fund 575 – WWTP Construction Grant. This is a reimbursable grant. Reimbursement requests are scheduled to be submitted quarterly – final grant award was processed in December. Third request was submitted in late November and has been approved – payment is pending. A fourth request is scheduled to be completed in January.
December Fund Transfers
o Fund 585 Lift Station #5 Repair was completed in December and fund transfers from Fund 202 American Rescue Plan Act (ARPA) and Fund 564 – Sewer Connections were processed. Anticipated revenues/expenditures for January include:
o Revenues
Allocation for Sales Tax revenues reported/paid to the State for the month of November 2022 (two-month lag).
First fiscal year 2022-2023 allocation (55%) of annual property tax and sewer delinquent charges to be received from Placer County.
o Expenditures
Ongoing monthly operating expenses.
Approved capital project expenditures –WWTP solar project and Lift Station #5 repair projects have had increased activity this past quarter.
Attachments:
1. General Fund Reserved Cash Analysis Graph
2. Cash Activity Reports
a. Cash Summary
b. Cash Transactions Report – by individual fund
c. Check Register Report - Accounts Payable
3B
8 Prev Yr Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Cash Balance FY2022-23 $3,418 $3,412 $3,568 $3,396 $3,451 $3,644 $3,560 Cash Balance FY2021-22 $2,857 $2,831 $2,953 $2,833 $2,943 $2,946 $2,794 $3,120 $3,088 $2,971 $3,004 $3,462 $3,418 Cash Balance FY2020-21 $2,311 $2,392 $2,497 $2,386 $2,402 $2,463 $2,393 $2,688 $2,760 $2,612 $2,771 $3,023 $2,857 Cash Balance FY2019-20 $2,013 $2,069 $2,169 $2,110 $2,170 $2,467 $2,373 $2,747 $2,730 $2,615 $2,627 $2,910 $2,311 Cash Balance FY2018-19 $1,275 $1,398 $1,444 $1,447 $1,329 $1,420 $1,336 $1,672 $1,812 $1,760 $1,893 $2,151 $2,013 *Reserves (Ops, Cap, Pen) $945 $1,095 $1,095 $1,095 $1,095 $1,095 $1,095 $1,095 $1,095 $1,095 $1,095 $1,095 $1,095 Budget FY2022-23 $3,418 $3,418 $3,418 $3,418 $3,418 $3,418 $3,418 $3,418 $3,418 $3,418 $3,418 $3,418 $3,418 $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
City of Colfax - December 2022
General Fund Reserved Cash Analysis
(Dollars in Thousands)
Fiscal Year 2022-23 >>
3B9
Balance
11/30/2022 Revenues In* Expenses Out* Transfers Balance 12/31/2022 US Bank $ 310,285.52 $ 327,890.73 $ (839,271.98) $ 350,000.00 $ 148,904.27 LAIF $ 8,199,493.74 $ - $ - $ (350,000.00) $ 7,849,493.74 Total Cash - General Ledger 8,509,779.26 $ $ 327,890.73 $ (839,271.98) $ - 7,998,398.01 $ Petty Cash (In Safe) $ 300.00 $ 300.00
Total Cash $ 8,510,079.26 $ 327,890.73 $ (839,271.98) $ - 7,998,698.01 $ Change in Cash Account Balance - Total $ (511,381.25)
Attached Reports:
1. Cash Transactions Report (By Individual Fund)
2. Check Register Report (Accounts Payable) $ (748,683.80) Cash Receipts $ 175,169.67
Payroll Checks and Tax Deposits $ (79,139.40)
Utility Billings - Receipts $ 141,272.28
LAIF Interest $ -
Voided Checks/Reissues $ -
$ (511,381.25) $ -
*Does not include transfers between funds
Prepared by: Laurie Van Groningen, Finance Director
Laurie Van Groningen, Finance Director
Reviewed by: Wes Heathcock, City Manager
Wes Heathcock, City Manager
City of Colfax
Cash Summary
December 31, 2022
3B10
Beginning
Balance
Debit
Revenues
Credit
(Expenditures)
Ending
Balance
Fund Type: 1.11 - General Fund - Unassigned
Fund: 100 - General Fund $ 3,477,781.55 $ 152,830.37 $ (232,459.21) $ 3,398,152.71 Fund: 120 - Land Development Fees $ 159,663.92 $ - $ (5,269.65) $ 154,394.27 Fund: 200 - Cannabis Application $ 7,424.99 $ - $ - $ 7,424.99 Fund Type: 1.11 - General Fund - Unassigned $ 3,644,870.46 $ 152,830.37 $ (237,728.86) $ 3,559,971.97 Fund Type: 1.14 - General Fund - Restricted
Fund: 205 - Escrow Funds $ 153,657.00 $ - $ - $ 153,657.00 Fund: 571 - AB939 Landfill Diversion $ 23,317.26 $ - $ - $ 23,317.26 Fund: 572 - Landfill Post Closure Maintenance $ 804,122.94 $ - $ (14,157.58) $ 789,965.36 Fund Type: 1.14 - General Fund - Restricted $ 981,097.20 $ - $ (14,157.58) $ 966,939.62 Fund Type: 1.24 - Special Rev Funds - Restricted
Fund: 202 - ARPA American Rescue Plan Act $ 284,235.83 $ - $ (284,235.83) $ - Fund: 210 - Mitigation Fees - Roads $ 141,970.31 $ - $ - $ 141,970.31 Fund: 211 - Mitigation Fees - Drainage $ 5,426.22 $ - $ - $ 5,426.22 Fund: 212 - Mitigation Fees - Trails $ 75,381.16 $ - $ - $ 75,381.16 Fund: 213 - Mitigation Fees - Parks/Rec $ 193,048.19 $ - $ - $ 193,048.19 Fund: 214 - Mitigation Fees - City Bldgs $ 101,833.00 $ - $ - $ 101,833.00 Fund: 215 - Mitigation Fees - Vehicles $ 22,240.14 $ - $ - $ 22,240.14 Fund: 217 - Mitigation Fees - DT Parking $ 43,538.08 $ - $ - $ 43,538.08 Fund: 218 - Support Law Enforcement $ 53,035.54 $ 18,310.19 $ (90,271.25) $ (18,925.52) Fund: 244 - CDBG Program Inc - ME Lending $ - $ - $ - $ - Fund: 250 - Streets - Roads/Transportation $ (74,597.98) $ 2,356.14 $ (56,317.00) $ (128,558.84) Fund: 253 - Gas Taxes $ 47,095.10 $ 4,829.42 $ (1,324.89) $ 50,599.63 Fund: 258 - Road Maintenance - SB1/RSTBG $ 181,518.86 $ 3,545.15 $ - $ 185,064.01 Fund: 270 - Beverage Container Recycling $ 19,214.75 $ - $ - $ 19,214.75 Fund: 280 - Oil Recycling $ 3,788.71 $ - $ - $ 3,788.71 Fund: 290 - SB1383 Implementation Grant $ 20,294.73 $ - $ - $ 20,294.73 Fund: 292 - Fire Department Capital Funds $ 93,822.73 $ - $ - $ 93,822.73 Fund: 342 - Fire Construction - Mitigation $ 76,524.19 $ - $ - $ 76,524.19 Fund: 343 - Recreation Construction $ 76,524.66 $ - $ - $ 76,524.66 Fund: 367 - SB2 - Planning Grant $ (31,620.36) $ - $ (10,893.86) $ (42,514.22) Fund: 376 - Downtown Streetscape $ (10,792.84) $ - $ (13,604.35) $ (24,397.19) Fund: 378 - Zoning Code Update $ (1,766.45) $ - $ - $ (1,766.45) Fund Type: 1.24 - Special Rev Funds - Restricted$ 1,320,714.57 $ 29,040.90 $ (456,647.18) $ 893,108.29 Fund Type: 1.34 - Capital Projects - Restricted
Fund: 358 - CDBG Pavement $ (92,621.34) $ - $ - $ (92,621.34) Fund Type: 1.34 - Capital Projects - Restricted $ (92,621.34) $ - $ - $ (92,621.34) Fund Type: 2.11 - Enterprise Funds
Fund: 560 - Sewer $ 1,706,371.50 $ 91,980.41 $ (102,239.62) $ 1,696,112.29 Fund: 561 - Sewer Liftstations $ 725,802.93 $ 14,677.74 $ (19,885.16) $ 720,595.51 Fund: 563 - Wastewater Treatment Plant $ 761,634.70 $ 39,207.47 $ (320.96) $ 800,521.21 Fund: 564 - Sewer Connections $ 443,017.95 $ - $ (121,243.07) $ 321,774.88 Fund: 575 - WWTP Construction Grant $ (613,495.78) $ - $ (290,459.25) $ (903,955.03) Fund: 576 - Phase II - Pond 3 Fissure Repair $ - $ - $ - $ - Fund: 585 - LS #5 Force Main Repairs $ (369,593.90) $ 405,478.90 $ (2,069.20) $ 33,815.80 Fund Type: 2.11 - Enterprise Funds - Unassigned$ 2,653,737.40 $ 551,344.52 $ (536,217.26) $ 2,668,864.66 Fund Type: 9.0 - CLEARING ACCOUNT
Fund: 998 - PAYROLL CLEARING FUND $ 1,980.97 $ 153.84 $ - $ 2,134.81 Fund Type: 9.0 - CLEARING ACCOUNT $ 1,980.97 $ 153.84 $ - $ 2,134.81 Grand Totals: $ 8,509,779.26 $ 733,369.63 $ (1,244,750.88) $ 7,998,398.01 City of Colfax
Cash Transactions Report - December 2022
3B11
CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
Checks Processed Dec 2022
BANK:
Vendor
Number Vendor Name Check Description
US BANK Page: 1
Time: 3:37 pm
Date: 01/06/2023
Void/Stop
Date
Reconcile
Date
US BANK Checks
58843 12/06/22 Reconciled 12/31/22 2087 BASIC PACIFIC FSA BENEFIT PYMT 39.55 58844 12/06/22 Reconciled 12/31/22 03141 CALPERS HEALTH PREMIUMS DEC 2022 13,646.94 58845 12/07/22 Reconciled 12/31/22 1161 49ER WATER SERVICES WWTP TESTING SEPT 2022 1,740.00 58846 12/07/22 Reconciled 12/31/22 1442 AMERICAN LEGION POST 192 2021 WINTER SNOW STORM REIMB 897.69 58847 12/07/22 Reconciled 12/31/22 01448 AMERIGAS - COLFAX DEPOT PROPANE 263.99 58848 12/07/22 Reconciled 12/31/22 01448 AMERIGAS - COLFAX DEPOT PROPANE 254.18 58849 12/07/22 Reconciled 12/31/22 01448 AMERIGAS - COLFAX DEPOT PROPANE 106.84 58850 12/07/22 Reconciled 12/31/22 3468 CIVICWELL STREETSCAPE CONSULTING OCT 202 13,604.35 58851 12/07/22 Reconciled 12/31/22 07591 COLFAX GREEN MACHINE TRUNK OR TREAT EVENT REFUND 100.00 58852 12/07/22 Reconciled 12/31/22 04234 DE LAGE LANDEN FINANCIAL COPY MACH LEASE DEC 2022 444.96 FRONTIER 227.36
COMMUNICATIONS
58853 12/07/22 Reconciled 12/31/22 06278 WWTP PHONE
58854 12/07/22 Reconciled 12/31/22 7798 G&T TRUCK REPAIR BACKHOE TIRES 2,575.16 GOLD MOUNTAIN 302.53
CALIFORNIA
58855 12/07/22 Printed 07460 ELECTION NOTICE
GOLD MOUNTAIN 163.92
CALIFORNIA
58856 12/07/22 Printed 07460 ELECTION NOTICE
GOLD MOUNTAIN 201.15
CALIFORNIA
58857 12/07/22 Printed 07460 PUBLIC HEARING NOTICE
GOLD MOUNTAIN 204.60
CALIFORNIA
58858 12/07/22 Printed 07460 PUBLIC HEARING NOTICE
GOLD MOUNTAIN 360.00
CALIFORNIA
58859 12/07/22 Printed 07460 PUBLIC HEARING NOTICE
GOLD MOUNTAIN 168.95
CALIFORNIA
58860 12/07/22 Printed 07460 PUBLIC HEARING NOTICE
GOLD MOUNTAIN 172.72
CALIFORNIA
58861 12/07/22 Printed 07460 PUBLIC HEARING NOTICE
58862 12/07/22 Reconciled 12/31/22 7560 ADRIENNE GRAHAM WWTP SOLAR ENV SEPT 2022 3,154.75 58863 12/07/22 Reconciled 12/31/22 07570 GRAINGER WWTP SUPPLIES 506.88 HANSEN BROS. 348.56
ENTERPRISES
58864 12/07/22 Reconciled 12/31/22 08070 CORP YARD GRAVEL HANSEN BROS. 4,721.00
ENTERPRISES
58865 12/07/22 Reconciled 12/31/22 08070 WWTP KEY PAD RPR/BOLLARD INST 58866 12/07/22 Reconciled 12/31/22 08086 HBE RENTALS AERATOR RENTAL 81.80 58867 12/07/22 Reconciled 12/31/22 08170 HILLS FLAT LUMBER CO SUPPLIES 601.22 58868 12/07/22 Reconciled 12/31/22 8501 HOLT RENEWABLES WWTP SOLAR PROGRESS PAY 216,996.15 HOME DEPOT CREDIT 411.45
SERVICES
58869 12/07/22 Reconciled 12/31/22 08501 SUPPLIES
58870 12/07/22 Reconciled 12/31/22 08660 HUNT AND SONS, INC. FUEL 616.01 58871 12/07/22 Reconciled 12/31/22 08660 HUNT AND SONS, INC. FUEL 669.56 58872 12/07/22 Reconciled 12/31/22 8661 HYDROCOMPLIANCE WWTP MONTHLY QSP SERVICE 1,800.00 58873 12/07/22 Reconciled 12/31/22 09455 INLAND BUSINESS SYSTEMS COPY MACH LEASE Q2 22/23 5.63 58874 12/07/22 Reconciled 12/31/22 09540 INTERSTATE SALES ST SIGNAGE 511.84 58875 12/07/22 Reconciled 12/31/22 23101 LARRY WALKER ASSOCIATES NPDES PERMIT ASS OCT 2022 482.00 LIEBERT CASSIDY 1,098.50
WHITMORE
58876 12/07/22 Reconciled 12/31/22 12209 HR LEGAL MATTER 58877 12/07/22 Reconciled 12/31/22 12557 LOMEN, JESSICA POLITICAL SIGN REFUND 50.00 58878 12/07/22 Printed 12555 LOMEN, SEAN POLITICAL SIGN REFUND 50.00 58879 12/07/22 Reconciled 12/31/22 18400 NAPA AUTO PARTS WWTP SUPPLIES 21.20 NORTHERN CALIFORNIA 141.38
GLOVE
58880 12/07/22 Reconciled 12/31/22 14356 PW GLOVES
PELLETREAU, ALDERSON & 10,544.24
CABRAL
58881 12/07/22 Reconciled 12/31/22 16011(2) LEGAL SERVICES NOV 2022 58882 12/07/22 Reconciled 12/31/22 16040A PITNEY BOWES POSTAGE MACH LEASE Q2 22/23 167.84 PLACER COUNTY SHERIFF 218,362.00
DEPT.
58883 12/07/22 Reconciled 12/31/22 16200 SHERIFF CONTRACT Q2 FY 22/23 58884 12/07/22 Reconciled 12/31/22 16052 PLACEWORKS GEN PLAN UPDATE/HOUSING ELEM 362.23 58885 12/07/22 Reconciled 12/31/22 16821 PSOMAS WWTP CONST MAN OCT 2022 18,080.00 58886 12/07/22 Reconciled 12/31/22 19037 SAFE SIDE SECURITY WWTP/BALLPARK SECURITY RPR 405.00 58887 12/07/22 Reconciled 12/31/22 19037 SAFE SIDE SECURITY CORP YARD SECURITY DEC 2022 155.00 58888 12/07/22 Reconciled 12/31/22 19037 SAFE SIDE SECURITY WWTP SECURITY DEC 2022 95.00 3B12
CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
Checks Processed Dec 2022
BANK:
Vendor
Number Vendor Name Check Description
US BANK Page: 2
Time: 3:37 pm
Date: 01/06/2023
Void/Stop
Date
Reconcile
Date
US BANK Checks
58889 12/07/22 Reconciled 12/31/22 19065 SCI CONSULTING GROUP TOT BALLOT OUTREACH 7,858.33 58890 12/07/22 Reconciled 12/31/22 19474 SIMPSON & SIMPSON DELINEATOR RPR 43,838.00 58891 12/07/22 Printed 19522 SPAID FOR SCHOOL BOARD POLITICAL SIGN DEPOSIT REFUND 50.00 58892 12/07/22 Reconciled 12/31/22 19743 WILLIAM STOCKWIN DEC COLFAX CONN EDITING 300.00 58893 12/07/22 Reconciled 12/31/22 20092 PAMELA BIERY-WINKS PUBLIC OUTREACH 600.00 58894 12/07/22 Reconciled 12/31/22 21500 USA BLUE BOOK, INC WWTP TUBING 499.40 VAN GRONINGEN & 6,032.50
ASSOCIATES
58895 12/07/22 Reconciled 12/31/22 22106 FINANCIAL SVCS NOV 2022 VULCAN MATERIALS 335.05
COMPANY
58896 12/07/22 Reconciled 12/31/22 22240 ASPHALT
VULCAN MATERIALS 318.53
COMPANY
58897 12/07/22 Reconciled 12/31/22 22240 ASPHALT
VULCAN MATERIALS 345.34
COMPANY
58898 12/07/22 Reconciled 12/31/22 22240 ASPHALT
VULCAN MATERIALS 219.33
COMPANY
58899 12/07/22 Reconciled 12/31/22 22240 ASPHALT
VULCAN MATERIALS 377.52
COMPANY
58900 12/07/22 Reconciled 12/31/22 22240 ASPHALT
58901 12/07/22 Reconciled 12/31/22 23169 WAVE BUSINESS SOLUTIONS CITY HALL INTERNET 159.90 58902 12/07/22 Reconciled 12/31/22 23169 WAVE BUSINESS SOLUTIONS DEPOT PHONE 18.99 58903 12/07/22 Reconciled 12/31/22 23450 WINNER CHEVROLET, INC. WWTP TRUCK TIRES 1,152.82 58904 12/07/22 Reconciled 12/31/22 23451 WOOD RODGERS SSMP UPDATE 1,021.25 58905 12/07/22 Reconciled 12/31/22 23451 WOOD RODGERS WWTP CONST OCT 2022 6,409.85 58906 12/10/22 Reconciled 12/31/22 2087 BASIC PACIFIC FSA BENEFIT PYMT 20.00 58907 12/21/22 Printed 11203 2M LOCATING, LLC WWTP SOLAR UTILITY LOCATING 3,500.00 58908 12/21/22 Printed 1161 49ER WATER SERVICES WWTP LAB TESTING OCT 2022 2,320.00 ALHAMBRA & SIERRA 201.40
SPRINGS
58909 12/21/22 Printed 01414 WATER
58910 12/21/22 Reconciled 12/31/22 01448 AMERIGAS - COLFAX DEPOT PROPANE 341.54 58911 12/21/22 Reconciled 12/31/22 01766 AT&T MOBILITY CITY CELL PHONE 771.97 BUREAU VERITAS NORTH 5,940.00
AMERICA
58912 12/21/22 Printed 02901 BLDG DEPT SVC NOV 2022
58913 12/21/22 Reconciled 12/31/22 03401 CHOICE BUILDER JAN 22 PREMIUMS 340.14 58914 12/21/22 Printed 3425 CINTAS UNIFORM SVCS NOV 2022 404.88 58915 12/21/22 Reconciled 12/31/22 04592 DACOMM WWTP PHONE 103.45 EDWARDS HEATING & 99.00
COOLING
58916 12/21/22 Reconciled 12/31/22 05120 CITY HALL HVAC RPR EOSI - ENVIRONMENT 7,953.94
OPERATING
58917 12/21/22 Printed 05221 CHEMICALS
58918 12/21/22 Reconciled 12/31/22 6203 FENNEMORE WENDEL LEGAL MATTER 548.50 58919 12/21/22 Reconciled 12/31/22 14859 GHD INC. ENG SVCS NOV 2022 11,666.25 58920 12/21/22 Reconciled 12/31/22 07570 GRAINGER WWTP SUPPLIES 97.52 58921 12/21/22 Reconciled 12/31/22 07570 GRAINGER WWTP SUPPLIES 345.81 58922 12/21/22 Printed 08086 HBE RENTALS BOOM LIFT FOR LIGHTS 490.00 HILL BROTHERS CHEMICAL 5,374.83
CO.
58923 12/21/22 Printed 08159 WWTP CHEMICALS
HINDERLITER, DE LLAMAS & 607.57
ASSOC
58924 12/21/22 Printed 08200 SALES TAX AUDIT Q2 22/23
58925 12/21/22 Printed 16035 PG&E ELECTRICITY 16,028.32 58926 12/21/22 Printed 16052 PLACEWORKS GEN PLAN UPDATE/HOUSING ELEM 8,548.88 58927 12/21/22 Reconciled 12/31/22 16821 PSOMAS WWTP SOLAR CONST MAN NOV 2022 18,595.00 58928 12/21/22 Printed 19192 SECRETARY OF STATE CERTIFIED COPY 6.00 58929 12/21/22 Reconciled 12/31/22 01790 SIERRA OFFICE PRODUCTS OFFICE SUPPLIES 279.31 58930 12/21/22 Printed 19474 SIMPSON & SIMPSON WWTP EQUIP RPR 2,325.00 STANLEY CONVERGENT 167.34
SECURITY
58931 12/21/22 Printed 19591 DEPOT SECURITY Q3 22/23
58932 12/21/22 Reconciled 12/31/22 19696 SWRCB WWTP ANNUAL PERMIT 21,317.00 58933 12/21/22 Printed 21105 UNICO ENGINEERING LS 5 CONST MAN INSP NOV 2022 2,069.20 UNION PACIFIC RAILROAD 1,045.00
COMPANY
58934 12/21/22 Reconciled 12/31/22 21131 I&I UTILITY INSTALL APP 58935 12/21/22 Reconciled 12/31/22 21452 EMMANUEL URSU PLANNING SVCS OCT 2022 15,104.95 3B13
CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
Checks Processed Dec 2022
BANK:
Vendor
Number Vendor Name Check Description
US BANK Page: 3
Time: 3:37 pm
Date: 01/06/2023
Void/Stop
Date
Reconcile
Date
US BANK Checks
US BANK CORPORATE PMT 5,724.33
SYSTEM
58936 12/21/22 Reconciled 12/31/22 21560 STMT 11/22/22
58937 12/21/22 Reconciled 12/31/22 22134 VISION QUEST TECH SUPPORT JAN 2023 3,800.00 58938 12/21/22 Reconciled 12/31/22 22134 VISION QUEST SUPPLIES 548.60 58939 12/21/22 Reconciled 12/31/22 23169 WAVE BUSINESS SOLUTIONS CITY HALL PHONE 227.79 58940 12/21/22 Reconciled 12/31/22 23169 WAVE BUSINESS SOLUTIONS FIRE DEPT PHONE 38.42 58941 12/21/22 Reconciled 12/31/22 23169 WAVE BUSINESS SOLUTIONS CORP YARD INTERNET 64.67 58942 12/21/22 Reconciled 12/31/22 23301 WESTERN PLACER WASTE SLUDGE REMOVAL NOV 2022 731.50 58943 12/21/22 Printed 23451 WOOD RODGERS SSMP UPDATE 4,606.25 58944 12/21/22 Printed 23451 WOOD RODGERS WWTP CONST NOV 2022 20,878.50 Total Checks: 102 Checks Total (excluding void checks): 748,683.80 Total Payments: 102 Bank Total (excluding void checks): 748,683.80 Total Payments: 102 Grand Total (excluding void checks): 748,683.80 3B14
t
City of Colfax Ordinance Establishing Expedited Permitting Process for Staff Report January 25, 2023 Electric Vehicle Charging Stations Staff Report to City Council
FOR THE JANUARY 25, 2023, REGULAR CITY COUNCIL MEETING
From: Wes Heathcock, City Manager
Prepared by: Wes Heathcock, City Manager
Alfred A. “Mick” Cabral, City Attorney
Subject: Ordinance Amending Colfax Municipal Code Title 15 By Adding Chapter 15.40 To Establish Procedures For Expediting The Permit Process For Electric Vehicle Charging Stations.
Budget Impact Overview:
N/A: √ Funded: Un-funded: Amount: Fund(s):
Summary/Background
The proposed ordinance, if adopted, will establish an expedited, streamlined permitting process for electric vehicle charging stations. Government Code Section 65850.7 requires the City to adopt an ordinance of this nature. The draft before Council is derived from a “model” ordinance adopted by other jurisdictions.
This ordinance was introduced at the January 11, 2023, regular meeting, at which Council waived the first reading, conducted a public hearing and scheduled the second reading and adoption for this meeting. There have been no changes to the draft ordinance since January 11. The balance of this staff report substantially reiterates the January 11, 2023, staff report.
Assembly Bill (“AB”) 1236, enacted in 2015, added Government Code Section 65850.7 to require cities to adopt an ordinance to create an expedited, streamlined permitting process for electric vehicle charging stations on or before September 30, 2017. It was not clear whether that law applied to charter cities or small jurisdictions. That ambiguity was cured by AB970 which amended Government Code Section 65850.7(a)(1) to say “…this section applies to all cities, including charter cities.” There is no exception for small cities, so cities with populations of less than 200,000 residents are required to adopt a compliant ordinance by January 1, 2023.
The law, and therefore the proposed ordinance, will require Colfax to administratively approve an application to install an electric vehicle charging station through the issuance of a building permit or similar nondiscretionary permit subject only to limited review by the City’s building official. A discretionary use permit can be required only if the City’s building official finds that the station could have a specific adverse effect upon the public health or safety, and prohibits the City from denying the application for a discretionary use permit unless it makes written findings that the proposed installation would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.
The law, and therefore the proposed ordinance, also requires that the City adopt a checklist such that an application that satisfies the information requirements in the checklist is deemed complete and therefore eligible for expedited review. A proposed checklist that is consistent with the checklist adopted by other local agencies is included in the agenda materials and has been approved by the City’s building inspector.
Applications that are not administratively deemed complete or determined to be incomplete within the applicable legal time constraints, which depend upon the number of proposed installations, will be deemed RECOMMENDED ACTION: Waive the second reading and adopt Ordinance 551 establishing procedures for expediting the permit process for electric vehicle charging stations, to be effective 30 days after adoption. 3C
15 t
City of Colfax Ordinance Establishing Expedited Permitting Process for Staff Report January 25, 2023 Electric Vehicle Charging Stations complete. Applications that are not administratively approved or rejected within the applicable legal time constraints, which depend upon the number of proposed installations, will be deemed approved.
If an approved charging station impacts the required parking spaces for existing uses, the number of parking spaces required for the existing use must be reduced to accommodate the charging station and associated equipment. The proposed ordinance and law do not expand or restrict PG&E’s role or responsibility in providing new electric services.
Staff will be available to answer questions or provide additional information.
Fiscal Impacts
Adopting the proposed ordinance will not create an immediate financial impact or require budget amendment or augmentation.
Attachments:
1. Proposed ordinance.
2. Checklist
3C
16 CITY OF COLFAX
ORDINANCE NO. 551
AN ORDINANCE OF THE CITY OF COLFAX ESTABLISHING PROCEDURES FOR
EXPEDITING PERMIT PROCESSING FOR
ELECTRIC VEHICLE CHARGING STATIONS
The City Council of the City of Colfax does ordain as follows:
Section 1:
Colfax Municipal Code Title 15 is hereby amended by adding Chapter 15.40 in the form and substance contained in the Ordinance attached hereto as Exhibit A and incorporated herein by this reference.
Section 2. Superceding Provisions
The provisions of this Ordinance and any resolution adopted pursuant hereto shall supersede and repeal any previous Ordinance or resolution to the extent the same is in conflict herewith.
Section 3. Severability
If any section, phrase, sentence, or portion of this Ordinance is for any reason held invalid or unconstitutional by the final judgment of any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision; and such holding shall not affect the validity of the remaining portions hereof.
Section 4. California Environmental Quality Act Findings The City of Colfax finds that, if the provisions of the California Environmental Quality Act, Public Resources Code §21000 et seq (hereinafter "CEQA") apply, the title of this ordinance would constitute a brief description of the "Project" as required by Section 15062(a)(1) of the Guidelines for Implementation of the California Environmental Quality Act published by the State of California Office of Planning and Research (the "CEQA Guidelines").
FINDING OF NO PROJECT
The City of Colfax finds that adoption of this ordinance does not constitute a "Project" as that term is defined by or used in CEQA, the CEQA Guidelines or any court or attorney general opinion construing the same. Accordingly, the City of Colfax finds that the provisions of CEQA and the CEQA Guidelines are not applicable to said action.
FINDING OF EXEMPTION
In the event that it is found that the said action constitutes a "Project" as defined by or used in CEQA or the CEQA Guidelines, which finding would be contrary to the City’s opinion of its action, the City of Colfax hereby finds that said action is exempt from compliance with CEQA and the CEQA Guidelines, for the following reasons: The action falls within the exemptions provided by Senate Bill 94, and within the “common sense” CEQA exemption provided in 14 3C17
CCR 15061(b)(3) in that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the action may have a significant effect on the environment, the action is not subject to CEQA. CEQA Guidelines, Section 15061(b)(3). It can be seen with certainty that adoption of this ordinance and its provisions cannot possibly have a significant effect on the environment.
Section 5. Effective Date
This Ordinance, and all of its provisions, shall take effect thirty (30) days after its adoption and shall, within 15 days after its adoption, be published or posted in accordance with Section 36933 of the Government Code of the State of California with the names of those City Council members voting for and against it.
The foregoing Ordinance was introduced at a duly held regular meeting of the City Council of the City of Colfax held on the 14th day of December, 2022, and passed and adopted at a duly held regular meeting of the City Council held on the 11th day of January, 2023, by the following vote:
AYES:
NOES:
ABSENT:
______________________________
Trinity Burruss, Mayor
APPROVED AS TO FORM: ATTEST:
_______________________________ _____________________________ Alfred Cabral Marguerite Bailey
City Attorney City Clerk
3C18
EXHIBIT A
CITY OF COLFAX
ORDINANCE NO. 551
AN ORDINANCE OF THE CITY OF COLFAX ESTABLISHING PROCEDURES FOR
EXPEDITING PERMIT PROCESSING FOR
ELECTRIC VEHICLE CHARGING STATIONS
Colfax Municipal Code Title 15, Chapter 15.40, is hereby added to the Colfax Municipal Code to read as follows:
15.40.010. Purpose.
(a) The State of California and the City of Colfax have consistently promoted and encouraged the use of fuel-efficient electric vehicles. (b) Creation of an expedited, streamlined permitting process for electric vehicle charging stations will facilitate convenient charging of electric vehicles throughout the city. (c) Electric vehicle charging stations which qualify for expedited administrative permit processing pursuant to California Government Code Section 65850.7, as may be amended or replaced from time to time, shall be subject to the permitting procedures set forth in this chapter.
15.40.020. Definitions.
The following words and phrases used in this chapter shall have the following meanings ascribed to them. If the definition of any such word or phrase is changed by an amendment to or replacement of any statute or publication referred to in this ordinance, then the following meanings shall have the same meaning and interpretation as that word, phrase or publication has as amended or replaced.
(a) “A feasible method to satisfactorily mitigate or avoid the specific, adverse impact” includes, but is not limited to, any cost-effective method, condition, or mitigation imposed on another similarly situated application in a prior successful application for a permit. (b) “Applicable time period” for purposes of Section 15.40.060 shall mean either of the following:
(i) Five (5) business days after submission of the application to the city if the application is for at least one (1) but not more than twenty-five (25) electric vehicle charging stations at a single site.
(ii) Ten (10) business days after submission of the application to the city if the application is for more than twenty-five (25) electric vehicle charging stations at a single site.
3C19
(c) “Association” means a non-profit corporation or unincorporated association created for the purpose of managing a common interest development. (d) “Electronic submittal” means the utilization of one or more of the following: email, the internet, facsimile or other utilization of the city’s electronic permitting system, if any. (e) “Electric vehicle charging station” or “charging station” means any level of electric vehicle supply equipment station that is designed and built in compliance with Article 625 of the California Electrical Code, as may be amended or replaced from time to time, and delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle. (f) “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
15.40.030 Expedited Review Process.
Consistent with Government Code Section 65850.7, the city’s building official shall implement an expedited administrative permit review process for electric vehicle charging stations, and adopt a checklist of all requirements with which electric vehicle charging stations shall comply with in order to be eligible for expedited review. The expedited administrative permit review process and checklist may refer to the recommendations in the checklist prescribed by the most current version of the “Plug-In Electric Vehicle Infrastructure Permitting Checklist” of the “Zero-Emission Vehicles in California: Community Readiness Guidebook” published by the Governor’s Office of Planning and Research. The city’s adopted checklist shall be published on the city’s website.
15.40.040 Electronic Submittals.
Consistent with Government Code Section 65850.7, the building official shall allow for electronic submittal of permit applications covered by this chapter and associated supporting documentations. In accepting such permit applications, the building official shall also accept electronic signatures on all forms, applications, and other documentation in lieu of a wet signature by any applicant.
15.40.050 Association Approval.
Consistent with Government Code Section 65850.7, the building official shall not condition the approval of any electric vehicle charging station permit on the approval of such a system by an association.
15.40.060 Permit application processing.
(a) A permit application that satisfies the information requirements in the city’s adopted checklist shall be deemed complete and shall be promptly processed. Upon confirmation by the building official that the permit application and supporting documents meets the requirements of the city’s adopted checklist, and is consistent with all applicable laws, rules and regulations, the building official shall, consistent with Government Code Section 65850.7, approve the application and issue all necessary permits. Such approval does not authorize an applicant to energize or utilize the electric vehicle charging station until approval is granted by the city. If the building official determines that the permit application is incomplete, he or she shall issue a written correction notice to the applicant, detailing all deficiencies in the application and any additional information required to be eligible for expedited permit issuance. 3C20
(b) An application to install an electric vehicle charging station submitted to the city’s building official shall be deemed complete if, after the applicable time period has elapsed, both of the following are true:
(i) The city building official has not deemed the application complete, consistent with the checklist created by the city pursuant to California Government Code Section 65850.7(g); and
(ii) The city building official has not issued a written correction notice detailing all deficiencies in the application and identifying any additional information explicitly necessary for the city building official to complete a review limited to whether the electric vehicle charging station meets all health and safety requirements of local, state, and federal law, consistent with California Government Code Sections 65850.7 (b) and (g). (c) An application to install an electric vehicle charging station submitted to the city’s building official shall be deemed approved if, after the applicable time period has elapsed, all of the following are true:
(i) The city’s building official has not administratively approved the application;
(ii) The city’s building official has not made a finding , based on substantial evidence, that the electric vehicle charging station could have a specific adverse impact on the public health or safety or required the applicant to apply for a use permit pursuant to California Government Code Section 65850.7(b);
(iii) The city’s building official has not denied the permit application pursuant to California Government Code Section 65850.7(c); and
(iv) An appeal has not been made pursuant to California Government Code Section 65850.7(d).
(d) If an electric vehicle charging station and any associated equipment interfere with, reduce, eliminate, or in any way impact the required parking spaces for existing uses, the city shall reduce the number of required parking spaces for the existing uses by the amount necessary to accommodate the electric vehicle charging station and any associated equipment. (e) If the electric vehicle charging station is being installed in an area that receives electric service from a local publicly owned electric utility, this section does not expand or restrict the local publicly owned electric utility’s role and responsibility in providing new electric service to the electric vehicle charging station in a manner consistent with safety, reliability, and engineering requirements.
(b) Nothing in this chapter shall modify or remove any obligation of the permit applicant or operator of an electric vehicle charging station to comply with any electric utility’s reasonable and feasible safety, reliability, and engineering interconnection policies.
15.40.070 Technical review.
It is the intent of this chapter to encourage the installation of electric vehicle charging stations by removing obstacles to permitting for charging stations so long as the action does not 3C21
supersede the building official’s authority to address higher priority life-safety situations. If the building official makes a finding based on substantial evidence that the electric vehicle charging station could have a specific adverse impact upon the public health or safety, as defined in Government Code 65850.7, the city may require the applicant to apply for a use permit. 3C22
2019 California Building Standards Code of Regulations Title 24
RESIDENTIAL
ELECTRICAL VEHICLE CHARGING STATION
CHECKLIST
Completed Building Permit Application.
Completed plans, including floor plan and panel location. Completed Electrical Vehicle Charging Station Checklist. Completed Electrical Load Worksheet if required below. Equipment Manufacturer’s Installation Instructions.
General Requirements:
Level of EV charging:
Level 1 (120V) Level 2 (240V)
Type of equipment being installed:
NEMA 14-50 NEMA 5-15 NEMA 5-20 Other
Equipment Overcurrent Protection Rating:
50A 15A 20A Other
Existing Electrical Service (If less than 150A, provide Electrical Load Worksheet):
100A 125A 150A 200A
Branch Circuit Distance:
100 Feet or less More Than 100 Feet
Conductor Size:
#14 Cu #12 Cu #6 Cu Other
Circle the Approximate Location of Charging System (less preferred location requires a Ballard) _____________________________ ____________________________ __________ Applicant/Representative Name Applicant/Representative Signature Date This Section to be Completed by City Staff Only
Submittal Date:
Permit Number:
Issued Date:
APN: ______ - ______ - ______ - 000
P. O. Box 702, Colfax, CA 95713 Ph: (530) 346-2313 Web: www.colfax-ca.gov 3C
23 P. O. Box 702, Colfax, CA 95713 Ph: (530) 346-2313 Web: www.colfax-ca.gov 2019 California Building Standards Code of Regulations Title 24
COMMERCIAL
ELECTRICAL VEHICLE CHARGING STATION
CHECKLIST
Completed Building Permit Application.
Three copies of site plan.
Three copies of electrical plan.
Completed Electrical Vehicle Charging Station Checklist. Equipment Manufacturer’s Installation Instructions.
Building footprints and landscaped areas.
Parking and circulation areas.
Show locations of any existing and all proposed EV stations, panels, and other service equipment. Demonstrate compliance with accessibility provisions CBC 11B-228.3. Wheel stops or ballards to protect equipment when in vehicle path.
Electrical Plan:
Electrical and equipment layout.
Single line diagram.
Electrical Load Calculations (Existing + New) and Panel schedule. Demonstrate compliance with accessibility provisions.
Total Number
Of EVCS At Facility
Minimum Number (by type) Of EVCS Required
Van Standard Ambulator
1-4 1 0 0
5- 1 1 0
26- 1 1 1
>50 See CBC Table 11B-
_____________________________ ____________________________ __________ Applicant/Representative Name Applicant/Representative Signature Date Plan Requirements:
Site Plan:
This Section to be Completed by City Staff Only
Submittal Date:
Permit Number:
Issued Date:
APN: ______ - ______ - ______ - 000
3C
24 City of Colfax Metal Storage Buildings Procurement & Installation Staff Report January 25, 2023
Staff Report to City Council
FOR THE JANUARY 25, 2023 REGULAR CITY COUNCIL MEETING
From: Wes Heathcock, City Manager
Prepared by: Martin Jones, Public Works Director
Subject: Metal Storage Buildings Procurement and Installation Budget Impact Overview:
N/A: Funded: √ Un-funded: Amount: $38,481 Fund(s): 214/564 Summary/Background
As the equipment fleet for Public Works and Waste Water grows, so does the need to protect these valuable investments. The FY 2022/2023 City Budget approved by City Council on June 8, 2022, included the purchase of two outdoor storage buildings. Staff has researched numerous outdoor enclosure vendors for the procurement and installation of two metal storage buildings to be installed at the Public Works Corporation Yard and Waste Water Treatment Plant. These buildings are necessary to protect current and future outdoor equipment utilized by both departments. Solicited quotes requested by each vendor are based on dimensions provided by staff for ample storage of all current heavy equipment and trailers utilized by each department.
Staff contacted three vendors and requested design, build and installation pricing for two structures. Quotes were received from Viking Steel Structures, Foothill Sheds and Coast to Coast Carports. All vendors except for Coast to Coast Carports included certified plans and certifications for the buildings snow and wind loads in their price quote:
Public Works Corporate Yard
Vendor Certified / Plans Dimensions Cost Cost/Sqft
Viking Steel Structures Yes / Yes 40’W x 24’L x 12’H $22,503.54 $23.44 Foothill Sheds Yes / Yes 40’W x 21’L x 12’H $31,216.10 $37.16 Coast to Coast Carports No / No 30’W x 25’L x 12’H $18,031.36 $24.04 Waste Water Treatment Plant
Vendor Certified / Plans Dimensions Cost Cost/Sqft
Viking Steel Structures Yes / Yes 24’W x 26’L x 12’H $12,480.38 $20.00 Foothill Sheds Yes / Yes 24’W x 21’L x 12’H $14,712.86 $29.19 Coast to Coast Carports No / No 24’W x 25’L x 12’H $9,723.55 $16.22 Staff recommends that City Council authorize the City Manager to execute a purchase agreement with Viking Steel Structures for the procurement and installation of metal equipment storage buildings at the Public Works Corporation Yard and Waste Water Treatment Plant, with a not to exceed amount of $38,481. The cost of the buildings includes all materials, hardware, labor and certified plans. Each structure will be installed on a gravel bed and anchored to the ground with 2-foot long corkscrew anchors.
RECOMMENDED ACTION: Adopt Resolution __-2023 authorizing the City Manager to execute a purchase agreement with Viking Steel Structures for the procurement and installation of metal equipment storage buildings at the Public Works Corporation Yard and Waste Water Treatment Plant, with a not to exceed amount of $38,481.
3D
25 City of Colfax Metal Storage Buildings Procurement & Installation Staff Report January 25, 2023
Fiscal Impact
The fiscal impact of this purchase agreement is for a not to exceed amount of $38,481, which includes a 10% contingency. Funds will be drawn from Fund 214 (Mitigation Fees) and Fund 564 (Sewer Connections).
Attachments:
1. Resolution __-2023
2. Agreement
3. Exhibit A
3D
26 _________________________________________________________________________________________ City of Colfax Metal Storage Buildings Procurement & Installation.
Resolution __-2023
City of Colfax
City Council
Resolution № __-2023
AUTHORIZING THE CITY MANAGER TO EXECUTE A PURCHASE AGREEMENT WITH VIKING
STEEL STRUCTURES FOR THE PROCUREMENT AND INSTALLATION OF METAL EQUIPMENT
STORAGE BUILDINGS AT THE PUBLIC WORKS CORPORATION YARD AND WASTE WATER TREATMENT PLANT WITH A NOT TO EXCEED AMOUNT OF $38,481
WHEREAS, FY 2022/2023 City Budget approval by City Council on June 8, 2022, included the purchase of two storage buildings to protect city equipment. City staff solicited three quotes for metal equipment storage buildings to house the growing equipment fleet utilized by Public Works and Waste Water; and
WHEREAS, three proposals were received from Viking Steel Structures, Coast to Coast Carports and Foothill Sheds; and
WHEREAS, After reviewing all three proposals, Viking Steel Structures was selected as the lowest qualified bid in the amount of $34,984, and included a 10% contingency bringing the total to $38,481.
NOW THEREFORE, BE IT RESOLVED the City Council of the City of Colfax authorizes the City Manager to execute a purchase agreement with Viking Steel Structures for the acquisition and installation of metal equipment storage buildings at the Public Works Corporation Yard and Waste Water Treatment Plant, with a not to exceed amount of $38,481,
THE FOREGOING RESOLUTION WAS DULY AND REGULARLY ADOPTED at the Regular Meeting of the City Council of the City of Colfax held on the 25th day of January 2023 by the following vote of the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________________
Trinity Burruss, Mayor
ATTEST:
________________________________________
Marguerite Bailey, City Clerk
3D27
AGREEMENT FOR CONTRACT SERVICES
THIS AGREEMENT is made and entered into on this 26th day of January, 2023 by and between the City of Colfax, a municipal corporation of the State of California (“City”) and Viking Steel Structures (“Contractor”.)
RECITALS
A. The City desires to retain Contractor to provide the Services set forth in detail in Exhibit A hereto (the “Services”) subject to the terms and conditions of this Agreement.
B. Contractor is duly licensed and sufficiently experienced to undertake and perform the Services in a skilled and workmanlike manner and desires to do so in accordance with the terms and conditions of this Agreement.
Now, therefore, in consideration of the mutual covenants, promises and conditions set forth in this Agreement, the City and Contractor agree as follows:
Section 1. Services.
Subject to the terms and conditions set forth in this Agreement, Contractor shall furnish and perform all of the Services described in detail in Exhibit A hereto and incorporated herein by this reference (the “Services”) to the satisfaction of the City. Contractor shall not perform any work exceeding the scope of the Services described in Exhibit A without prior written authorization from the City.
Section 2. Time of Completion.
Contractor shall commence performance of the Services promptly upon receipt of written notice from the City to proceed. The performance of the Services will be completed by September 30, 2023. During the performance of the Services, Contractor shall provide the City with written progress reports at least once each month and at such additional intervals as City may from time to time request.
Section 3. Compensation.
A. Except as may otherwise be provided in Exhibit A or elsewhere in this Agreement or its exhibits, Contractor shall invoice City once each month for the Services performed during the preceding month. Such invoices shall itemize all charges in such detail as may reasonably be required by City in the usual course of City business but shall include at least (i) the date of performance of each of the Services, (ii) identification of the person who performed the Services, (iii) a detailed description of the Services performed on each date, (iv) the hourly rate at which the Services on each date are charged, (v) an itemization of all costs incurred and (vi) the total charges for the Services for the month invoiced. As long as the Contractor performs the Services to the satisfaction of the City, the City shall pay the Contractor an all inclusive compensation that shall not exceed the amount as detailed in Exhibit A except pursuant to an authorized written change order issued pursuant to Section 15 of this Agreement before the Services requiring additional 3D28
compensation are performed. City shall pay Contractor no later than thirty (30) days after approval of the monthly invoice by City’s staff.
B. The Contractor's compensation for the Services shall be full compensation for all indirect and direct personnel, materials, supplies, equipment and services incurred by the Contractor and used in carrying out or completing the Services. Payments shall be in accordance with the payment schedule established in Exhibit A or elsewhere in this Agreement or its exhibits.
C. The City shall have the right to receive, upon request, documentation substantiating charges billed to the City pursuant to this Agreement. The City shall have the right to perform an audit of the Contractor's relevant records pertaining to the charges.
D. Any Services performed more than sixty (60) days prior to the date upon which they are invoiced to the City shall not be compensable.
Section 4. Professional Ability; Standard of Quality.
City has relied upon the professional training and ability of Contractor to perform the Services described in Exhibit A as a material inducement to enter into this Agreement. Contractor shall therefore provide properly skilled professional and technical personnel to perform all Services under this Agreement. All Services performed by Contractor under this Agreement shall be in a skillful, workmanlike manner in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Contractor’s field of expertise.
Section 5. Indemnification.
Contractor shall hold harmless and indemnify, including without limitation the cost to defend, the City and its officers, agents and employees from and against any and all claims, demands, damages, costs or liability that arise out of, or pertain to, or relate to the negligence, recklessness or willful misconduct of Contractor and/or its agents in the performance of the Services. This indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or material defects in design by the City or its agents, servants employees or independent contractors other than Contractor who are directly responsible to the City, or arising from the active negligence of the City officers, agents, employees or volunteers
Section 6. Insurance.
Without limiting Contractor’s indemnification obligations provided for above, Contractor shall take out before beginning performance of the Services and maintain at all times during the life of this Agreement the following policies of insurance with insurers possessing a Best rating of not less than A. Contractor shall not allow any subcontractor, professional or otherwise, to commence work on any subcontract until all insurance required of the Contractor has also been obtained by the subcontractor.
A. Workers’ Compensation Coverage. Statutory Workers’ Compensation insurance and 3D29
Employer’s Liability Insurance to cover its employees. In the alternative, Contractor may rely on a self-insurance program to meet its legal requirements as long as the program of selfinsurance complies fully with the provisions of the California Labor Code. Contractor shall also require all subcontractors, if such are authorized by the City, to similarly provide Workers’ Compensation insurance as required by the Labor Code of the State of California for all of the subcontractor’s employees. All Workers’ Compensation policies shall be endorsed with the provision that the insurance shall not be suspended, voided, or cancelled until thirty (30) days prior written notice has been provided to City by the insurer. The Workers’ Compensation insurance shall also contain a provision whereby the insurance company agrees to waive all rights of subrogation against the City and its elected or appointed officials, officers, agents, and employees for losses paid under the terms of such policy which arise from the Services performed by the insured for the City.
B. General Liability Coverage. General liability insurance, including personal injury and property damage insurance for all activities of the Contractor and its subcontractors, if such are authorized by the City, arising out of or in connection with the Services. The insurance shall be written on a comprehensive general liability form and include a broad form comprehensive general liability endorsement. In the alternative, the City will accept, in satisfaction of these requirements, commercial general liability coverage which is equivalent to the comprehensive general liability form and a broad form comprehensive general liability endorsement. The insurance shall be in an amount of not less than $1 million combined single limit personal injury and property damage for each occurrence. The insurance shall be occurrence based insurance. General liability coverage written on a claims made basis shall not be acceptable absent prior written authorization from the City.
C. Automobile Liability Coverage. Automobile liability insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than $1 million combined single limit for each occurrence.
D. Policy Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following provisions:
1. The City, and its elected or appointed officials, employees and agents shall be named as insureds or additional insureds with regard to damages and defenses of claims arising from activities performed by or on behalf of the Contractor.
2. The insurance afforded by each policy shall apply separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the insurer’s limits of liability.
3. The insurance shall be primary insurance as respects the City and its elected or appointed officers, officials, employees and agents. Any other insurance maintained by the City or its elected or appointed officers, officials, employees, agents or volunteers shall be in excess of this insurance and shall not contribute with it. 3D30
4. The insurance shall not be suspended, voided, cancelled, or reduced in coverage or in limits except after thirty (30) days prior written notice has been provided to the City.
5. Any failure to comply with the reporting requirements of any policy shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, or agents.
E. Professional Liability Coverage. If required by the City, Contractor shall also take out and maintain professional liability, errors and omissions insurance in an amount not less than $1 million. The professional liability insurance policy shall be endorsed with a provision stating that it shall not be suspended, voided, cancelled, or reduced in coverage or in limits except after thirty (30) days written notice has been provided to the City.
F. Insurance Certificates and Endorsements. Prior to commencing the Services under this Agreement, Contractor shall submit to the City documentation evidencing the required insurance signed by the insurance agent and the companies named. This documentation shall be on forms which are acceptable to the City and shall include all required endorsements and verify that coverage is actually in effect. This Agreement shall not be effective until the required insurance forms and endorsements are submitted to and approved by the City.
Failure to provide these forms within the time period specified by City may result in the award of this Agreement to another Contractor should the City, in its sole discretion, decide to do so.
Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.
G. Deductible and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City.
H. Termination of Insurance. If the City receives notification that Contractor’s insurance will be suspended, voided, cancelled or reduced in coverage or in limits, and if the Contractor does not provide for either the reinstatement of that insurance or for the furnishing of alternate insurance containing all of the terms and provisions specified above prior to the termination of that insurance, City may either terminate this Agreement for that breach, or City may secure the required insurance to satisfy the conditions of this Agreement and deduct the cost thereof from compensation which would otherwise be due and payable to the Contractor for Services rendered under the terms of this Agreement.
Section 7. Subcontracts.
Contractor may not subcontract any portion of the Services without the written authorization of City. If City consents to a subcontract, Contractor shall be fully responsible to the City and third parties for all acts or omissions of the subcontractor to which the Services or any portion thereof are subcontracted. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor, nor shall it create any obligation on the part of the City to pay or cause the payment of any monies due to any such subcontractor except as otherwise is required by law.
Section 8. Assignment.
3D31
Contractor shall not assign any right or obligation under this Agreement without the City’s prior written consent. Any attempted assignment of any right or obligation under this Agreement without the City’s prior written consent shall be void.
Section 9. Entire Agreement.
This Agreement represents the entire understanding of City and Contractor as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered herein. This Agreement may not be modified or altered except in writing signed by both parties.
Section 10. Jurisdiction.
This Agreement shall be administered and interpreted under the laws of the State of California.
Jurisdiction over any litigation arising from this Agreement shall be in the Superior Court of the State of California with venue in Placer County, California.
Section 11. Suspension of Services.
Upon written request by Contractor, City may suspend, in writing, all or any portion of the Services if unforeseen circumstances beyond the control of the City and Contractor make normal progress of the Services impossible, impractical or infeasible. Upon written City approval to suspend performance of the Services, the time for completion of the Services shall be extended by the number of days performance of the Services is suspended.
Section 12. Termination of Services.
City may at any time, at its sole discretion, terminate all or any portion of the Services and this Agreement upon seven (7) days written notice to Contractor. Upon receipt of notice of termination, Contractor shall stop performance of the Services at the stage directed by City. Contractor shall be entitled to payment within thirty (30) days for Services performed up to the date of receipt of the written notice of termination. Contractor shall not be entitled to payment for any Services performed after the receipt of the notice of termination unless such payment is authorized in advance in writing by the City.
Should Contractor fail to perform any of the obligations required of Contractor within the time and in the manner provided for under the terms of this Agreement, or should Contractor violate any of the terms and conditions of this Agreement, City may terminate this Agreement by providing Contractor with seven (7) days written notice of such termination. The Contractor shall be compensated for all Services performed prior to the date of receipt of the notice of termination.
However, the City may deduct from the compensation which may be owed to Contractor the amount of damage sustained or estimated by City resulting from Contractor’s breach of this Agreement.
Contractor’s obligations pursuant to Sections 5 and 6 of this Agreement shall survive termination, 3D32
and continue in effect for as long as necessary to fulfill the purposes of Sections 5 and 6.
Section 13. Independent Contractor.
Contractor shall in all respects be an independent contractor and not an agent or employee of City.
Contractor has and shall retain the right to exercise full control and supervision of the means and methods of performing the Services. Contractor shall receive no premium or enhanced pay for Services normally understood as overtime; nor shall Contractor receive holiday pay, sick leave, administrative leave or pay for any other time not actually expended in the performance of the Services. It is intended by the parties that Contractor shall not be eligible for benefits and shall receive no compensation from the City, except as expressly set forth in this Agreement. Contractor shall submit completed W-9 and Report of Independent Contractor forms upon execution of this Agreement and prior to the payment of any compensation hereunder.
Section 14. Ownership of Documents.
Within thirty (30) days after the Contractor substantially completes performance of the Services, or within thirty (30) days after the termination of this Agreement, the Contractor shall deliver to the City all files, records, materials and documents drafted or prepared by Contractor's in the performance of the Services. It is expressly understood and agreed that all such files, records, materials and documents are the property of the City and not the property of the Contractor. All finished and unfinished reports, plans, studies, documents and other writings prepared by and for Contractor, its officers, employees and agents in the course of performing the Services shall become the sole property of the City upon payment to Contractor for the Services, and the City shall have the exclusive right to use such materials in its sole discretion without further compensation to Contractor or to any other party. Contractor shall, at Contractor’s expense, provide such reports, plans, studies, documents and writings to City or any party the City may designate, upon written request. Contractor may keep file copies of all documents prepared for City. Use of any such documents by the City for projects that are not the subject of this Agreement or for purposes beyond the scope of the Services shall be at the City’s sole risk without legal liability or expense to Contractor.
Section 15. Changes and/or Extra Work.
Only the City Council may authorize extra and/or changed Services, modification of the time of completion of the Services, or additional compensation for the tasks to be performed by Contractor.
Contractor expressly recognizes that other City personnel are without authorization to order extra and/or changed Services or to obligate the City to the payment of additional compensation. The failure of Contractor to secure the prior written authorization for such extra and/or changed Services shall constitute a waiver of any and all right to adjustment in the contract price due to such unauthorized Services, and Contractor thereafter shall not be entitled to any compensation whatsoever for the performance of such extra or changed Services. In the event Contractor and City agree that extra and/or changed Services are required, or that additional compensation shall be awarded to Contractor for performance of the Services under this Agreement, a supplemental agreement providing for such compensation shall be prepared and shall be executed by the Contractor and the necessary City officials before the extra and/or changed Services are provided. 3D33
Section 16. Compliance with Federal, State and Local Laws.
Contractor shall comply with all applicable federal, state and local laws, statutes, ordinances, rules and regulations affecting the Services, including without limitation laws requiring licensing and prohibiting discrimination in employment because of race, creed, color, sex, age, marital status, physical or mental disability, national origin or other prohibited bases. City shall not be responsible or liable for Contractor’s failure to comply with applicable laws, statutes, ordinances, rules or regulations.
Section 17. Retention of Records.
Contractor and any subcontractors authorized by the terms of this Agreement shall keep and maintain full and complete documentation and accounting records, employees’ time sheets, and correspondence pertaining to the Services, and Contractor shall make such documents available for review and/or audit by City and City’s representatives at all reasonable times during performance of the Services and for at least four (4) years after completion of the Services and/or termination of this Agreement.
Section 18. Alternative Dispute Resolution
A. Before resorting to mediation, arbitration or other legal process, the primary contacts of the parties shall meet and confer and attempt to amicably resolve any dispute arising from or relating to this Agreement subject to the following provisions. Any party desiring to meet and confer shall so advise the other party pursuant to a written notice. Within 15 days after provision of that written notice by the party desiring to meet and confer, the primary contacts for each party shall meet in person and attempt to amicably resolve their dispute.
Each primary contact, or the person acting in their absence with full authority to resolve the dispute, shall attend the meeting and shall be prepared to devote an entire day thereto. If any dispute remains unresolved at the end of the meeting, any party to this Agreement shall have the right to invoke the mediation process provided for in the subparagraph B below.
B. Subject to the provisions of subparagraph A, any dispute that remains unresolved after the meet and confer shall immediately be submitted to non-binding neutral mediation, before a mutually acceptable, neutral retired judge or justice at the Sacramento Office of the Judicial Arbitration and Mediation Service (“JAMS”). If within five days after the meet and confer the parties are unable to agree upon the selection of a neutral mediator, then the first available retired judge or justice at the Sacramento office of JAMS shall serve as the neutral mediator. The parties agree to commit to at least one full day to the mediation process. Additionally, to expedite the resolution of any dispute that is not resolved by mediation, the parties agree to each bring to the neutral mediation a list of at least five neutral arbitrators, including their resumes, whose availability for an arbitration hearing within 30 days after the mediation has been confirmed.
C. If mediation is unsuccessful, before the mediation concludes, the parties shall mediate the selection of a neutral arbitrator to assist in the resolution of their dispute. If the parties are 3D34
unable to agree on an arbitrator, the parties agree to submit selection of an arbitrator to the mediator, whose decision shall be binding on the parties. In that case, the mediator shall select a neutral arbitrator from the then active list of retired judges or justices at the Sacramento Office of the JAMS. The arbitration shall be conducted pursuant to the provisions of the California Arbitration Act, sections 1280-1294.2 of the California Code of Civil Procedure. In such case, the provisions of Code of Civil Procedure Section 1283.05 and 1283.1 shall apply and are hereby incorporated into this Agreement.
D. This section 18 shall survive the termination or expiration of this Agreement. If there is no Sacramento office of JAMS, then the office of JAMS closest to the City shall be used instead of a Sacramento office.
Section 19. Severability.
The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by an arbitrator or by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual written consent of the parties.
Section 20. Entire Agreement; Amendment.
This Agreement, including all exhibits hereto, constitutes the complete and exclusive expression of the understanding and agreement between the parties with respect to the subject matter hereof. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement. This Agreement may be amended or extended from time to time only by written agreement of the parties hereto.
Section 21. Time of the Essence.
Time is of the essence in the performance of the Services. The Contractor will perform its Services with due and reasonable diligence consistent with sound professional practices and shall devote such time to the performance of the Services as may be necessary for their timely completion.
Section 22. Written Notification.
Except as otherwise specified in this Agreement, any notice, demand, request, consent, approval or communications that either party desires or is required to give to the other party shall be in writing and either served personally or sent by first class mail, postage prepaid and addressed as follows.
Either party may change its address by notifying the other party in writing of the change of address.
Notice shall be deemed communicated within two business days from the time of mailing if mailed within the State of California as provided in this Section.
If to City: City of Colfax
33 S. Main Street
Colfax, CA 95713
3D35
If to Contractor: Viking Steel Structures Inc.
113 West Main Street
Boonville NC, 27011
Section 23. Execution.
This Agreement may be executed in original counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one original counterpart is signed by both parties hereto. In proving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.
Section 24. Successors. This Agreement shall be binding on and inure to the benefit of the respective parties hereto except to the extent of any contrary provision in this Agreement.
Section 25. Attorney’s Fees. If any party to this Agreement commences legal proceedings to enforce any of its terms or to recover damages for its breach, the prevailing party shall be entitled to recover its reasonable attorney’s fees, costs and the expenses of expert witnesses, including any such fees costs and expenses incurred on appeal.
IN WITNESS WHEREOF, the parties hereby have executed this Agreement on the day first above written:
CITY CONTRACTOR
Signature Signature
Printed Name Printed Name
Title Title
Date Date
APPROVED AS TO FORM:
City Attorney
3D36
Quote Form
(877) 219-9946
www.vikingsteelstructures.com
[email protected]
Customer Information Building Specialist Information
Name Martin Jones Quote Date 12/20/2022
Street County Placer Name Brett J.
City Colfax State CA Zip 95713 Direct Line (704) 834-1845 Phone 530-368-2150 Cell Email
Email [email protected] [email protected] Lot must be level, no more than 3" off-level, and clear 5% return trip fee if lot is unleveled and unit cannot be installed
Note that frame is 1ft shorter than roof
of obstacles or unit may not be installed. length
Building
Size 24 W 26 L 12 H
Colors
Roof
Property
Surface Type Gravel
Style Side(s) Lot ready? Yes No
Gauge 12 GA. 14 GA. End(s) Lot leveled? Yes No
Certification 105mph/30psf Trim Electricity? Yes No
Item Description Qty Price
Down-payment is based on sub-total
Totals
24x26 Vertical Roof (24x25 Base) $5,385.00 Sub-Total
$10,350.00
12` Leg Height $800.00
Horizontal Both Sides Closed 9` $860.00 Tax 7.250%
$750.38
Horizontal On End Closed 9` $1,190.00
Horizontal Front Gable 1 $275.00 Down
Payment $1,811.25
Mobile Home Anchors $490.00 17.50%
30 PSF Certification $630.00 Total
$9,289.13
Diagonal Bracing 6 $720.00
Extra Labor
$0.00
Plans &
Calculations $1,380.00
MAKING DOWN PAYMENT LOCKS IN PRICE FOR Other Fees
$0.00
12 MONTHS TO LET YOU GET YOUR SITE READY
AND PERMITS PULLED Sur-Charge
$0.00
Balance Due
After Down $10,669.13
Office Use Only:
Check M.O
Cashier's C/C
Other:
Notes/Reminders:
QUOTE VALID FOR 5 BUSINESS DAYS FREE DELIVERY &
INSTALLATION STANDARD COLORED GALVANIZED SCREWS ARE INCLUDED UNLESS UPGRADED Manufacturer may require 50% of remaing balance at scheduling LOCK IN WITH DEPOSIT,
PLACE ON HOLD WITH NO
PENALTY!!
TOTAL PRICE DELIVERED AND INSTALLED VSS DOES NOT PROVIDE $12,480.38 CEMENT/GROUND WORK
**CUSTOMER IS RESPONSIBLE
FOR PULLING PERMIT IF
NEEDED**
3D
37 Quote Form
(877) 219-9946
www.vikingsteelstructures.com
[email protected]
Customer Information Building Specialist Information
Name Martin Jones Quote Date 12/20/2022
Street County Placer Name Brett J.
City Colfax State CA Zip 95713 Direct Line (704) 834-1845 Phone 530-368-2150 Cell Email
Email [email protected] [email protected] Lot must be level, no more than 3" off-level, and clear 5% return trip fee if lot is unleveled and unit cannot be installed
Note that frame is 1ft shorter than roof
of obstacles or unit may not be installed. length
Building
Size 40 W 24 L 12 H
Colors
Roof
Property
Surface Type Gravel
Style Side(s) Lot ready? Yes No
Gauge 12 GA. 14 GA. End(s) Lot leveled? Yes No
Certification 105mph/30psf Trim Electricity? Yes No
Item Description Qty Price
Down-payment is based on sub-total
Totals
40x24 Vertical Roof $12,795.00 Sub-Total
$18,721.25
12` Leg Height $1,830.00
Vertical Both Sides Closed 9` $1,400.00 Tax 7.250%
$1,357.29
Vertical On End Closed 9` $2,955.00
Vertical Front Gable 1 $655.00 Down
Payment $3,744.25
Mobile Home Anchors $490.00 20.00%
30 PSF Certification $700.00 Total
$16,334.29
Diagonal Bracing 6 $1,200.00
15% Off Holiday Sale -$3,303.75 Extra Labor
$0.00
CUSTOMER MUST PROVIDE TELESCOPIC FORKLIFT
DISCOUNT VALID TILL 12/30/22 Plans &
Calculations $2,425.00
MAKING DOWN PAYMENT LOCKS IN PRICE FOR Other Fees
$0.00
12 MONTHS TO LET YOU GET YOUR SITE READY
AND PERMITS PULLED Sur-Charge
$0.00
Balance Due
After Down $18,759.29
Office Use Only:
Check M.O
Cashier's C/C
Other:
Notes/Reminders:
QUOTE VALID FOR 5 BUSINESS DAYS FREE DELIVERY &
INSTALLATION STANDARD COLORED GALVANIZED SCREWS ARE INCLUDED UNLESS UPGRADED Manufacturer may require 50% of remaing balance at scheduling LOCK IN WITH DEPOSIT,
PLACE ON HOLD WITH NO
PENALTY!!
TOTAL PRICE DELIVERED AND INSTALLED VSS DOES NOT PROVIDE $22,503.54 CEMENT/GROUND WORK
**CUSTOMER IS RESPONSIBLE
FOR PULLING PERMIT IF
NEEDED**
3D
38 City of Colfax City of Colfax Audit Report as of
Staff Report January 25, 2023 Fiscal year Ended June 30, 2022 Staff Report to City Council
FOR THE JANUARY 25, 2023 REGULAR CITY COUNCIL MEETING
From: Wes Heathcock, City Manager
Prepared by: Marguerite Bailey, City Clerk, Laurie Van Groningen, Finance Director Subject: City of Colfax Audit Report as of Fiscal Year Ended June 30, 2022 Budget Impact Overview:
N/A: √ Funded: Un-funded: Amount: Fund(s):
Summary/Background
In accordance with federal, state and local statutes and best practices, the City of Colfax is committed to providing the public and its constituents with complete and accurate financial reporting. The City engages an independent auditing firm to perform professional audit services on an annual basis. On July 8, 2020 City Council passed Resolution 38-2020 which approved an agreement with Richardson & Company, LLP to provide annual audit services for up to three years after City staff issued a Request for Proposals (RFP).
The services provided include:
1. Audit of the Government-Wide Financial Statements in conformity with generally accepted accounting principles and issue an opinion thereon.
2. Test compliance with the Single Audit Act as amended in 1996, and applicable laws and regulations.
3. Prepare memorandum on Internal Control Structure and Management Letter
4. Test compliance with Proposition 111, Article XIII.B – Review of Appropriation Limit Calculations.
5. Preparation of Annual Financial Transactions Report to the state controller by due date
6. Assist the City with calculating its share of the net pension liability deferred inflows and deferred outflows since CalPERS is not providing separate employer amounts.
7. Other services as required.
Presentation By: Ingrid Sheipline, Managing Partner (Richardson and Co.), Auditor In planning and performing our audit of the financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Colfax (the City) for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Attachments:
1. Auditor Presentation Agenda – Outline
2. Audited Financial Statements with auditor’s opinion
3. Internal control and compliance reports
4. Governance (required communications) letter
5. Appropriations limit testing report
RECOMMENDED ACTION: Accept and receive Fiscal Year Ended June 30, 2022 Audit Report. 9A
39 CITY OF COLFAX Audit Report Presentation
Fiscal Year Ended June 30, 2022
Presented by: Ingrid Sheipline, Partner
Richardson & Company, LLP
January 25, 2023
The Fiscal Year ended June 30, 2022 Audit Report includes the following communications required by Generally Accepted Auditing Standards:
Reports issued:
1. Audited Financial Statements with auditors opinion
2. Internal control and compliance reports
3. Governance (required communications) letter
4. Appropriations limit testing report
1) Audited Financial Statements with auditors opinion
Independent Auditors Report
Unmodified (clean) opinion
Governmental Activities (Includes General Fund, Special Revenues, Capital projects) revenues exceeded expenses by $511,000 allocated to fund categories as follows:
Begin Balance FY 2021-2022 End Balance
Investment in Fixed Assets, net of annual depreciation $ 10,186,000 $ (219,000) $ 9,967,000 Restricted Funds Capital Projects, Mitigation Fees, Etc $ 1,516,000 $ (73,000) $ 1,443,000 Unrestricted Committed (Operating, Capital, Pension) $ 830,000 $ 115,000 $ 945,000 Unrestricted Assigned (Fire Services) $ 93,000 $ 1,000 $ 94,000 Unrestricted Non-spendable/Deferred (GASB Adjustments) $ 8,000 $ 68,000 $ 44,000 Unrestricted Unassigned $ 2,116,000 $ 619,000 $ 2,767,000 Total $ 14,749,000 $ 511,000 $ 15,260,000
General Fund revenues exceeded budget by $358,000 from higher sales taxes and building permits while expenses were less than budget by $161,000 from lower capital outlay costs. This amount is reflected in Unrestricted Unassigned Fund balance.
General fund unrestricted fund balance of $2,767,000 was 127% of 2022 General Fund expenditures. $945,000 was designated by Council for specific purposes.
Business Activities (Sewer Enterprise Fund) Revenues exceed expenses by $1,606,000 allocated to fund categories as follows:
Begin Balance FY 2021-2022 End Balance
Investment in Fixed Assets, net of annual depreciation $ 10,630,000 $ 1,027,000 $ 11,657,000 Restricted Funds Debt Reserves, Insurance/Capital funds $ 993,000 $ 129,000 $ 1,122,000 Unrestricted Designated (Operating, Capital) $ 650,000 $ 110,000 $ 760,000 Unrestricted Unassigned $ 1,670,000 $ 340,000 $ 2,010,000 Total $ 13,943,000 $ 1,606,000 $ 15,549,000
9A40
CITY OF COLFAX Audit Report Presentation
Fiscal Year Ended June 30, 2022
Presented by: Ingrid Sheipline, Partner
Richardson & Company, LLP
January 25, 2023
Sewer Enterprise Fund revenues exceeded budget due to unbudgeted insurance refund and grant revenue for WWTP improvement construction and generator replacement while personnel and O&M costs were lower than budget.
Liabilities
Debt of $6,936,000 to fund sewer system upgrades.
Unfunded pension liabilitynow an asset (overfunding) of $4,000 due to unusually large investment earnings.
No retiree health benefits, so no liability recorded.
Footnotes
Note J Contract commitments for fire service
2) Internal control and compliance reports
No internal control weaknesses
City complied with laws, regulations material to the financials 3) Governance (required communications) letter
Four audit adjustments mainly to deferred unspent grant funds and reclassifications for financial reporting
No difficulties in performing the audit and no unusual accounting practices 4) Management letter with recommendations
No material weaknesses in internal control
Good controls in place
Prior recommendations addressed. No new recommendations. 5) Appropriations limit testing report
No exceptions were noted
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CITY OF COLFAX, CALIFORNIA
Audited Financial Statements, Supplemental Information
and Compliance Report
June 30, 2022
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CITY OF COLFAX, CALIFORNIA
Audited Financial Statements, Supplemental Information and Compliance Report June 30, 2022
Table of Contents
INDEPENDENT AUDITOR’S REPORT ............................................................................................................ 1 MANAGEMENT’S DISCUSSION AND ANALYSIS ....................................................................................... 4
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:
Statement of Net Position ................................................................................................................................. 13 Statement of Activities ..................................................................................................................................... 14 FUND FINANCIAL STATEMENTS:
Governmental Funds:
Balance Sheet – Governmental Funds ........................................................................................................... 15 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position ............................................................................................. 16 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ................................................................................................................................... 17 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-wide Statement of Activities ............................................................................................................................... 18 Proprietary Funds:
Statement of Net Position – Proprietary Fund – Sewer Fund ........................................................................ 19 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Fund – Sewer Fund .................................................................................................................. 20 Statement of Cash Flows – Proprietary Fund – Sewer Fund ......................................................................... 21 Notes to the Basic Financial Statements ....................................................................................................... 22
REQUIRED SUPPLEMENTARY INFORMATION
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual (Budgetary Basis) – General Fund ............................................................................... 43 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – Miscellaneous Plan (Unaudited) ................................................................... 44
COMBINING STATEMENTS AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Non-Major Governmental Funds:
Combining Balance Sheet – Nonmajor Governmental Funds ....................................................................... 45 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ............................................................................................... 47
COMPLIANCE REPORT
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................................................................................................... 49 9A44
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
INDEPENDENT AUDITOR’S REPORT
To the City Council
Colfax, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Colfax, California as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Change in Accounting Principle
As described in Note D to the basic financial statements, the City adopted GASB Statement No. 87, Leases, during the year ended June 30, 2022. Due to the implementation of this Statement, the City recognized leases receivable and deferred inflows of resources in the financial statements as of July 1, 2021. Our opinion is not modified with respect to this matter.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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To the City Council
City of Colfax, California
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison for the General Fund, the Schedule of Proportionate Share of the Net Pension Liability and Schedule of Contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of 9A46
To the City Council
City of Colfax, California
management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedule of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 7, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulation, contracts, grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
December 7, 2022
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Colfax (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. We encourage the readers to consider the information presented here in conjunction with the accompanying basic financial statements and the additional information provided.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of resources at the close of Fiscal Year 2021-2022 by $30,809,325 (Net Position) which represents an increase of 7% or $2,117,952.
These assets are allocated as follows:
Net Investment in capital assets - $21,623,819. Total capital additions for the fiscal year were $1,610,826. Retirement of assets accounted for a decrease of $157,519.
Restricted net position - $2,564,590. This amount is for both governmental and business-type activities and is restricted for capital projects, debt service and legally segregated taxes, grants and fees.
Unrestricted net position for combined governmental and business-type activities - $6,620,916. This is an increase of $1,253,669 over the previous year. These funds may be used to meet ongoing obligations of the City. City established reserves (operations, capital improvements, and unfunded pension liability) and Nonspendable funds (long-term receivables and deferrals) are included in unrestricted net position.
Total revenue from all sources was $6,862,758 of which $1,515,165 was from capital grants and contributions. Total expenses from all sources were $4,744,806.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The government-wide Statement of Net Position on page 13 and the government-wide Statement of Activities on page 14 provide information about the activities as a whole and present a longer-term view of the City’s finances. Fund financial statements start on page 15. For governmental activities, these statements explain how programs and services were financed in the short term (the most recently completed fiscal year), as well as the amounts remaining available for future spending. Fund financial statements report the City’s operations in more detail than the government-wide statements by providing information about the City’s most 9A48
significant funds. Fund financial statements also provide financial information about activities for which the City acts solely as a trustee or agent (fiduciary) for the benefit of individuals and entities external to this governmental unit.
Reporting the City as a Whole
Our analysis of the City as a whole begins on page 13. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities, using the accrual basis of accounting, which is similar to the accounting used by most private-sector business entities. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements report the City’s net position and related changes. You can think of the City’s net position – the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources – as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. To reach a conclusion on this issue, you may need to consider other matters of a non-financial nature, such as:
the condition of the City’s infrastructure (streets and roadways, storm drainage improvements, sewer system, city hall), or
the economic vitality of the core business districts, or the adequacy of emergency response times of police and fire personnel, in order to properly assess the overall health of the City.
In the Statement of Net Position and the Statement of Activities, we divide the City into two (2) kinds of activities:
1. Governmental activities: most of the City’s basic services are reported here, including the operations of the sheriff, fire, building inspection, public works and general administration. Taxes (primarily property and sales), licenses, permits, state and federal grants, and franchise payments finance most of these activities.
2. Business-type activities: the City charges fees to customers to cover most of the cost of certain services and programs it provides. The City’s wastewater treatment operations are reported here.
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Reporting the City’s Most Significant Funds
Our analysis of the City’s major funds begins on page 15. The fund financial statements provide detailed information about the most significant funds – not the City as a whole.
Some funds are required to be established by State law (Gas Tax and Law Enforcement Grants funds). However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other money. The City’s two (2) kinds of funds – governmental and proprietary (business activities/enterprise funds) – use different accounting approaches:
Governmental funds: Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds, and the balances left at year-end that are nonspendable, restricted, committed, or unassigned. These classifications of fund balance show the nature and extent of constraints placed on the City’s fund balances by law, creditors, City council, and the City’s annually adopted budget. Unassigned fund balance is available for spending for any purpose. These funds are reported using an accounting method described as modified accrual accounting.
This accounting method (basis) measures the availability of cash and all other financial assets that can readily be converted into cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations, and the basic services it provides to residents and visitors of the City. Governmental fund information helps you to determine what financial resources are available to be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and the governmental funds, in a reconciliation (see pages 15 and 17).
Proprietary funds: When the City charges customers for the full cost for the services it provides, those services are generally reported in proprietary funds.
Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City’s enterprise funds (Sewer Operations) are the business-type activities that we report in the government-wide statements, but provide more detail and additional information, such as cash flows.
THE CITY AS A WHOLE
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $30,809,325 at the close of the current fiscal year.
By far the largest portion of the City’s net position reflects its investment in capital assets (e.g., land, street, sewer and storm drain systems, buildings and park assets, machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The 9A50
City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debts, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The City’s combined net position for the years ending June 30, 2022 and June 30, 2021 are summarized (Table 1), as follows:
The amount reported for net position of governmental activities does not include the value of the City’s infrastructure (roadways, bridges and storm drainage improvements) constructed prior to July 1, 2003.
Governmental Activities
Total revenues for governmental activities decreased $471,565 (-12%) in fiscal year 2021- 2022 as compared to the previous year. Although the City had a significant increase in Charges for Services (Development Fees), the increase was offset by a decrease in capital grants and contributions and sales tax revenues. In addition, the City transferred American Rescue Plan Act (ARPA) funds to the business-type activities for an infrastructure project and had a significant decrease due to retirement of assets which were transferred as part of a new Fire Services agreement. The City’s governmental activities net position increased Table 1
City of Colfax, Net Position
2022 2021 2022 2021 2022 2021
Assets:
Current assets $ 5,971,791 $ 5,109,009 $ 2,940,842 $ 2,775,027 $ 8,912,633 $ 7,884,036 Non-current and capital assets 10,514,683 10,243,112 19,732,285 18,941,916 30,246,968 29,185,028 Total Assets 16,486,474 15,352,121 22,673,127 21,716,943 39,159,601 37,069,064 Deferred Outflows of Resources
Pension plan 58,608 59,719 66,356 67,613 124,964 127,332 Liabilities:
Current liabilities 399,315 189,454 717,321 920,650 1,116,636 1,110,104 Long-term liabilities 397,369 473,324 6,473,130 6,920,554 6,870,499 7,393,878 Total Liabilities 796,684 662,778 7,190,451 7,841,204 7,987,135 8,503,982 Deferred Inflows of Resources
Pension plan - - - - - -
Leases 488,105 - - - 488,105 -
Net Position:
Net investment in capital assets 9,967,324 10,185,629 11,656,495 10,629,734 21,623,819 20,815,363 Restricted 1,442,533 1,516,105 1,122,057 992,658 2,564,590 2,508,763 Unrestricted 3,850,436 3,046,840 2,770,480 2,320,407 6,620,916 5,367,247 Total Net Position $ 15,260,293 $ 14,748,574 $ 15,549,032 $ 13,942,799 $ 30,809,325 $ 28,691,373 Total
Governmental
Activities
Business-type
Activities
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by $511,719 (3%) for the fiscal year. Sources of revenue and expenditures are noted in Table 2 below.
Business-Type Activities
Total revenues for Business-type activities increased $945,226 (36%) in fiscal year 2021- 2022 as compared to the previous year. The increase in revenues was primarily due to the receipt of capital grant funds for a solar power construction project at the Wastewater Treatment Plant. Business-type activities increased the City’s net position by $1,606,233 for the fiscal year, an increase of $935,576 over the previous year. The increase in net position is also primarily due to the capital grant funds for the solar power construction project at the Wastewater Treatment Plant. Sources of revenue and expenditures are noted in Table 2 below.
Table 2
City of Colfax, Change in Net Position
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for services 583,087 $ $ 356,660 $ 2,182,006 $ 2,199,943 $ 2,765,093 $ 2,556,603 Operating grants and
contributions 257,704 235,750 - 257,704 - 235,750
Capital grants and
contributions 429,778 643,813 1,085,387 197,779 1,515,165 841,592 General revenues:
Sales taxes 1,392,230 1,424,798 - 1,392,230 - 1,424,798 Property taxes 434,380 381,360 - 434,380 - 381,360
Other taxes and fees 534,921 608,421 - 534,921 - 608,421 Earnings on investments 19,685 24,022 12,791 17,333 32,476 41,355 Other (344,040) 104,486 274,829 194,732 (69,211) 299,218 Total revenues 3,307,745 3,779,310 3,555,013 2,609,787 6,862,758 6,389,097 Expenses:
General government 874,840 949,332 - 874,840 - 949,332
Public safety 1,001,357 948,634 - 1,001,357 - 948,634
Public works 583,654 614,802 - 583,654 - 614,802
Community development 68,260 68,260 - 68,260 - 68,260
Engineering Services 146,178 117,278 - 146,178 - 117,278 Culture and recreation 121,737 125,655 - 121,737 - 125,655 Sewer - 1,879,243 - 1,865,935 1,879,243 1,865,935
Interest on long-term debt - 69,537 - 73,195 69,537 73,195 Total expenses 2,796,026 2,823,961 1,948,780 1,939,130 4,744,806 4,763,091 Change in net position 511,719 955,349 1,606,233 670,657 2,117,952 1,626,006 Net position, July 1 14,748,574 13,793,225 13,942,799 13,272,142 28,691,373 27,065,367 Net position, June 30 15,260,293 $ 14,748,574 $ 15,549,032 $ 13,942,799 $ 30,809,325 $ 28,691,373 $ Governmental Business-type
Activities Activities Total
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Fiscal Year 2021-2022
Governmental Activities – Sources of Revenue
(Graphic representation of Table 2 in percentages)
Fiscal Year 2021-2022
Governmental Activities – Program Expenses
(Graphic representation of Table 2 in percentages)
General
government
31%
Public safety
36%
Public works
21%
Community
development
3%
Engineering
Services
5%
Culture and
recreation
4%
PROGRAM EXPENSES
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CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The capital assets of the City are those assets that are used in the performance of City functions including infrastructure assets. Capital assets include general government and public works equipment, vehicles, buildings, roads, wastewater treatment facilities and sewer lines. At June 30, 2022, net capital assets of the governmental activities totaled $9,967,324 and the net capital assets of the business-type activities totaled $18,592,544.
Depreciation on capital assets is recognized in the Government-Wide financial statements. (See table 3 and Note D to the financial statements.)
The City invested $1,610,826 in capital asset improvements and additions during the current fiscal year including the following:
Street repairs and improvements
Wastewater treatment plant construction project, primarily installation of solar power
Replacement of lift station and wastewater treatment plant generators During the fiscal year, the City retired $785,866 ($157,519 net of depreciation) of fire equipment and vehicles under a new fire services agreement.
Table 3
City of Colfax, Capital Assets
2022 2021 2022 2021 2022 2021
Land $ 1,379,087 $ 1,379,087 $ 134,700 $ 134,700 $ 1,513,787 $ 1,513,787 Easements 68,310 68,310 - 68,310 - 68,310
Construction in progress 104,906 107,813 918,235 100,486 1,023,141 208,299 Building and improvements 10,698,361 10,467,101 25,857,752 25,829,796 36,556,113 36,296,897 Vehicles 170,424 662,762 44,053 44,053 214,477 706,815
Machinery and equipment 191,327 470,511 1,246,737 723,471 1,438,064 1,193,982 Furniture and fixtures 15,084 15,926 - 15,084 - 15,926
Accumulated depreciation (2,660,175) (2,985,881) (9,608,933) (8,899,732) (12,269,108) (11,885,613) Total Capital Assets, Net $ 9,967,324 $ 18,592,544 10,185,629 $ 17,932,774 $ 28,559,868 $ 28,118,403 $ Total
Governmental
Activities
Business-type
Activities
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Long-Term Debt
At the end of fiscal year 2021-2022, the City had total long-term debts outstanding of $7,366,250, as compared to a total of $7,883,143 in the previous year (See Table 4 and Note E to the financial statements).
The City’s long-term debt includes: compensated absences due employees for accrued vacation and sick leave pay, Post Closure expenses related to the City’s closed landfill site, notes payable for the construction of the sewer plant and improvements projects, and note payable to developer for sewer infrastructure.
Major activity in outstanding debt for the fiscal year ended was:
Annual payment on the restructured State loan associated with the Wastewater Treatment Plant facility implementation (2009) and Pond 3 liner, I&I mitigation and SCADA project which completed in early fiscal year 2013-2014.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
In considering the City Budget for fiscal year 2022-2023, the City Council and management were cautiously optimistic as to the growth of revenues and expenditures.
The budget is balanced, with expenditure amounts in the General Fund and Sewer Enterprise Fund within projected revenues and available funds, while providing for contributions toward prudent fund balance reserves and capital asset additions. Staffing projections remain consistent with previous year’s projections and no additional staffing is anticipated.
Table 4
City of Colfax, Long-Term Liabilities
2022 2021 2022 2021 2022 2021
Postclosure landfill costs 389,275 $ $ 398,873 $ - $ 389,275 - $ $ 398,873 State loan - restructured - 6,831,420 - 7,198,411 6,831,420 7,198,411 Note payable - 104,629 - 104,629 104,629 104,629
Compensated absences 16,188 12,012 24,738 23,280 40,926 35,292 Net pension liability 68,445 - 77,493 - 145,938 -
Total Long-term Debt $ 405,463 $ 479,330 $ 6,960,787 $ 7,403,813 $ 7,366,250 $ 7,883,143 Total
Governmental
Activities
Business-type
Activities
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CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances, and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Director of Finance, City of Colfax, 33 S. Main Street, Colfax, California 95713.
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BASIC FINANCIAL STATEMENTS
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CITY OF COLFAX
Governmental Business-type
Activities Activities Total
ASSETS:
Current assets:
Cash and investments $ 5,341,440 $ 2,335,720 $ 7,677,160 Accounts receivable, net 109,216 140,297 249,513
Due from other governmental agencies 508,805 458,737 967,542 Interest receivable 9,330 6,088 15,418
Prepaid expenses 3,000 3,000
Total current assets 5,971,791 2,940,842 8,912,633
Noncurrent assets:
Restricted cash and investments 1,122,058 1,122,058
Leases receivable 504,331 504,331
Notes receivable 41,204 15,617 56,821
Net pension asset 1,824 2,066 3,890
Capital assets, net
Non-depreciable 1,552,303 1,052,935 2,605,238
Depreciable, net 8,415,021 17,539,609 25,954,630
Total capital assets, net 9,967,324 18,592,544 28,559,868 Total assets 16,486,474 22,673,127 39,159,601
DEFERRED OUTFLOWS OF RESOURCES:
Pension plan 58,608 66,356 124,964
Current liabilities:
Accounts payable 142,038 117,820 259,858
Retention payable 51,898 51,898
Accrued expenses 12,178 59,946 72,124
Unearned revenue 93,777 93,777
Refundable deposits 143,228 143,228
Current portion of long-term liabilities 8,094 487,658 495,752 Total current liabilities 399,315 717,322 1,116,637
Long-term liabilities:
Loan payable 6,460,760 6,460,760
Postclosure landfill costs 389,275 389,275
Compensated absences 8,094 12,369 20,463
Total long-term liabilities 397,369 6,473,129 6,870,498 Total liabilities 796,684 7,190,451 7,987,135
DEFERRED INFLOWS OF RESOURCES:
Leases 488,105 488,105
NET POSITION:
Net investment in capital assets 9,967,324 11,656,495 21,623,819 Restricted 1,442,533 1,122,057 2,564,590
Unrestricted 3,850,436 2,770,480 6,620,916
Total net position 15,260,293 $ 15,549,032 $ 30,809,325 $ The accompanying notes are an integral part of these financial statements.
GOVERNMENT-WIDE STATEMENT OF NET POSITION
LIABILITIES:
June 30, 2022
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Operating Capital
Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contributions Activities Activities Total
GOVERNMENTAL ACTIVITIES
General government $ 874,840 $ 544,683 $ (330,157) $ (330,157) Public safety 1,001,357 34,569 197,674$ (769,114) (769,114) Public works 583,654 60,030 $ 429,778 (93,846) (93,846) Community development 68,260 (68,260) (68,260)
Engineering services 146,178 (146,178) (146,178)
Culture and recreation 121,737 3,835 (117,902) (117,902) Total governmental activities 2,796,026 583,087 257,704 429,778 (1,525,457) (1,525,457) BUSINESS-TYPE ACTIVITIES:
Sewer 1,879,243 2,182,006 1,085,387 $ 1,388,150 1,388,150 Interest on long-term debt 69,537 (69,537) (69,537)
Total business-type activities 1,948,780 2,182,006 1,085,387 1,318,613 1,318,613 Total government $ 2,765,093 4,744,806 $ 257,704$ $ 1,515,165 (1,525,457) 1,318,613 (206,844) GENERAL REVENUES:
Taxes:
Sales and use taxes 1,392,230 1,392,230
Property taxes 434,380 434,380
Transient occupancy tax 70,157 70,157
Franchises 98,476 98,476
Gas taxes 56,830 56,830
Mitigation fees 143,160 143,160
Motor vehicle in-lieu 166,298 166,298
Investment income 19,685 12,791 32,476
Loss on disposal of assets (157,519) (157,519)
Transfers (196,392) 196,392 -
Miscellaneous 9,871 78,437 88,308
Total general revenues 2,037,176 287,620 2,324,796
Changes in net position 511,719 1,606,233 2,117,952
Net position, beginning of year 14,748,574 13,942,799 28,691,373 Net position, end of year $ 15,260,293 $ 15,549,032 $ 30,809,325 The accompanying notes are an integral part of these financial statements.
Program Revenues
CITY OF COLFAX
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2022
9A60
Nonmajor
General Governmental
Fund Funds Total
ASSETS:
Cash and investments $ 4,295,328 $ 1,046,112 $ 5,341,440 Accounts receivable, net 109,216 109,216
Due from other governmental agencies 343,799 165,006 508,805 Interest receivable 7,224 2,106 9,330
Leases receivable 504,331 504,331
Notes receivable 28,920 12,284 41,204
Prepaid items 3,000 3,000
Due from other funds 147,560 147,560
Total assets $ 5,439,378 $ 1,225,508 $ 6,664,886
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES:
LIABILITIES:
Accounts payable $ 129,039 $ 12,999 $ 142,038
Accrued expenses 10,041 2,137 12,178
Unearned revenue 29,747 64,030 93,777
Due to other funds 147,560 147,560
Refundable deposits 143,228 143,228
Total liabilities 312,055 226,726 538,781
DEFERRED INFLOWS OF RESOURCES:
Leases 488,105 488,105
Unavailable revenue 119,972 119,972
Total deferred inflows of resources 488,105 119,972 608,077 FUND BALANCES:
Nonspendable 31,920 12,284 44,204
Restricted 833,025 986,497 1,819,522
Committed 945,000 945,000
Assigned 93,506 93,506
Unassigned 2,735,767 (119,971) 2,615,796
Total fund balances 4,639,218 878,810 5,518,028
Total liabilities, deferred inflows of
resources and fund balances $ 5,439,378 $ 1,225,508 $ 6,664,886 The accompanying notes are an integral part of these financial statements.
CITY OF COLFAX
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2022
Major Fund
9A61
Total Governmental Fund Balances $ 5,518,028
Amounts reported for governmental activities in the statement of net position are different because:
Pension contributions subsequent to the valuation measurement date and other items will reduce the pension liability in the future and are reported as deferred outflows of resources on the statement of net position. 58,608
Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds balance sheet. 9,967,324 Certain receivables are not available to pay current period expenditures and, therefore, are reported as deferred inflows of resources in the governmental funds. 119,972 Long-term liabilities/assets are not due and payable/recoverable in the current period and, therefore, are not reported in the governmental funds balance sheet.
Compensated absences (16,188)
Postclosure landfill liability (389,275)
Net pension asset 1,824
Net Position of Governmental Activities $ 15,260,293
The accompanying notes are an integral part of these financial statements.
CITY OF COLFAX
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO GOVERNMENT-WIDE STATEMENT OF NET POSITION
June 30, 2022
9A62
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
REVENUES:
Taxes $ 1,995,243 56,830$ $ 2,052,073
Licenses, fees and permits 139,122 143,274 282,396
Intergovernmental revenues 221,247 676,727 897,974
Charges for services 334,564 334,564
Fines, forfeitures and penalties 3,962 3,962
Use of money and property 118,259 5,124 123,383
Other revenue 9,758 9,758
Total revenues 2,822,155 881,955 3,704,110
EXPENDITURES:
Current:
General government 932,808 932,808
Public safety 818,103 160,874 978,977
Public works 159,281 247,702 406,983
Engineering services 146,178 146,178
Cultural and recreation 103,508 103,508
Capital outlay 13,484 228,371 241,855
Total expenditures 2,173,362 636,947 2,810,309
Excess (deficiency) of revenues
over (under) expenditures 648,793 245,008 893,801
OTHER FINANCING SOURCES (USES):
Transfers in 9,006 238,641 247,647
Transfers out (108) (443,931) (444,039)
Total other financing sources (uses) 8,898 (205,290) (196,392) Net change in fund balances 657,691 39,718 697,409
Fund balances, beginning of year,
as previously reported 3,888,370 932,249 4,820,619
Reclassification of funds 93,157 (93,157)
Fund balances, beginning of year 3,981,527 839,092 4,820,619 Fund balances, end of year $ 878,810$ 4,639,218 $ 5,518,028 The accompanying notes are an integral part of these financial statements.
CITY OF COLFAX
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - For the Year Ended June 30, 2022
GOVERNMENTAL FUNDS
Major Fund
9A63
Net Change in Fund Balances - Total Governmental Funds $ 697,409 Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the government-wide statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period.
Capital outlay 241,855
Depreciation expense (302,641)
In the statement of activities, only the gain or (loss) on the sale of capital assets is reported, whereas in the governmental funds, proceeds from sales increase financial resources. (157,519)
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Government-wide Statement of Net Position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. This is the amount by which repayments exceed proceeds.
Postclosure landfill costs 9,598
Some receivables are deferred in the governmental funds because the amounts do not represent current financial resources that are recognized under the accrual basis in the statement of activities.
Difference between unavailable revenue recognized in the current year and prior year (42,454) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not expenditures in the governmental funds.
Change in compensated absences (4,176)
Change in deferred outflow/inflows of resources and net pension liability/asset 69,647 Change in Net Position of Governmental Activities $ 511,719 The accompanying notes are an integral part of these financial statements.
For the Year Ended June 30, 2022
CITY OF COLFAX
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
9A64
ASSETS:
Current assets:
Cash and cash equivalents $ 2,335,720
Accounts receivable, net 140,297
Due from other governmental agencies 458,737
Interest receivable 6,088
Total current assets 2,940,842
Noncurrent assets:
Restricted cash and cash equivalents 1,122,058
Notes receivable 15,617
Net pension asset 2,066
Capital assets, net:
Nondepreciable 1,052,935
Depreciable, net 17,539,609
Total capital assets, net 18,592,544
Total assets 22,673,127
DEFERRED OUTFLOWS OF RESOURCES:
Pension plan 66,356
LIABILITIES:
Current liabilities:
Accounts payable 117,820
Retention payable 51,898
Accrued expenses 59,946
Current portion of long-term liabilities 487,658
Total current liabilities 717,322
Long-term liabilities:
Loan payable 6,460,760
Compensated absences 12,369
Total long-term liabilities 6,473,129
Total liabilities 7,190,451
NET POSITION:
Net investment in capital assets 11,656,495
Restricted 1,122,057
Unrestricted 2,770,480
Total net position $ 15,549,032
The accompanying notes are an integral part of these financial statements.
CITY OF COLFAX
STATEMENT OF NET POSITION
PROPRIETARY FUND - SEWER FUND
June 30, 2022
9A65
OPERATING REVENUES:
Service charges $ 2,142,729
Miscellaneous 39,277
Total operating revenues 2,182,006
OPERATING EXPENSES:
Personnel services 507,856
Operation and maintenance 662,186
Depreciation 709,201
Total operating expenses 1,879,243
Net income from operations 302,763
NONOPERATING REVENUES (EXPENSES)
Insurance reimbursements 17,437
Interest income 12,791
Rental income 3,000
Other income 58,000
Interest expense (69,537)
Total nonoperating revenues (expenses) 21,691
CAPITAL CONTRIBUTIONS:
State grant revenue 1,085,387
Income before transfers 1,409,841
OTHER FINANCING SOURCES (USES):
Transfers in 196,392
Change in net position 1,606,233
Net position, beginning of year 13,942,799
Net position, end of year $ 15,549,032
The accompanying notes are an integral part of these financial statements.
CITY OF COLFAX
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUND - SEWER FUND
For the Year Ended June 30, 2022
9A66
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $ 2,279,365
Cash paid to suppliers (610,927)
Cash paid to employees and related benefits (584,692)
Net cash provided by operating activities 1,083,746
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (1,317,073)
Capital contributions received 522,631
Debt principal paid (366,991)
Debt interest paid (71,982)
Net cash used for capital and related financing activities (1,233,415) CASH FLOWS FROM INVESTING ACTIVITIES:
Amonts received from other funds 196,392
Investment income received 9,266
Payments on notes receivable received 867
Net cash provided by investing activities 206,525
Net increase in cash and cash equivalents 56,856
Cash and cash equivalents, beginning of year 3,400,922
Cash and cash equivalents, end of year $ 3,457,778
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION:
Cash and cash equivalents $ 2,335,720
Restricted cash and cash equivalents 1,122,058
Cash and cash equivalents, end of year $ 3,457,778
RECONCILIATON OF NET INCOME FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net income from operations $ 302,763
Adjustments to reconcile net income from operations to cash provided by operating activities:
Depreciation 709,201
Nonoperating revenues 78,437
(Increase) decrease in assets:
Accounts receivable, net 47,400
Due from other governments (28,478)
Prepaid expenses 17,260
(Decrease) increase in liabilities:
Accounts payable 33,999
Accrued expenses 561
Compensated absences 1,458
Net pension liability (79,559)
Deferred inflows (outflows) related to pension plan 704 Net cash provided by operating activities $ 1,083,746
The accompanying notes are an integral part of these financial statements.
CITY OF COLFAX
STATEMENT OF CASH FLOWS
PROPRIETARY FUND - SEWER FUND
For the Year Ended June 30, 2022
9A67
NOTES TO THE BASIC FINANCIAL STATEMENTS
9A68
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2022
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Colfax was incorporated in 1910, under the laws and regulations of the State of California.
The City operates under a Council-Manager form of government and provides the following services:
public safety, highways and streets, sewer, culture-recreation, public improvements, planning and zoning, and general administrative services. The voters of the City of Colfax, California, give authority and responsibility for operations to the City Council. The City Council has the authority to employ administrative and support personnel to carry out its directives. The primary method used to monitor the performance of the City’s management is the financial budget, which is adopted annually by the City Council.
The financial statements of the City have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting principles. The more significant of these accounting policies are described below and, where appropriate, subsequent pronouncements will be referenced.
Reporting Entity: The City operates as a self-governing local government unit within the state of California. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides. Voters elect a city council that passes laws and determines broad policies. The council also oversees the operations of the City and approves all budgets, fund transfers and fund balance reserves. The City’s main funding sources include property taxes, sales taxes, other inter-governmental revenue from state and federal sources, user fees, and federal and state financial assistance.
The City participates in a Joint Exercise of Powers Agreement with the County of Placer establishing the Sierra Valley Energy Authority (the Authority). This agreement was amended in February 2017 to include the unincorporated areas of Placer County and five cities in Placer County. The name was changed to Pioneer Community Energy (Pioneer) on July 17, 2017. Pioneer was established to provide assistance with the development, financing and implementation of public and private sector energy and resource development and conservation programs. The City has not had any financial activity related to the Authority during the year ended June 30, 2022.
The City is a member of the Placer County Transportation Planning Agency (the Agency), a joint powers authority. The City is not directly responsible for the liabilities of the Agency and only has a residual equity interest in the Agency that would result in the City’s proportional share of residual assets being distributed to the City, if any of the members vote to terminate the Agency. The Agency issues separate financial statements, which are available on its website.
Government-wide and Fund Financial Statements: The government-wide financial statements (i.e., the statement of net position and statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs are included in the program expenses of most business-type activities. Program revenues include 1) charges to customers or applicants who purchase, 9A69
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) use, or directly benefit from goods, services and privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
The accounts of the City are organized on the basis of funds. A fund is a separate self-balancing set of accounts. Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions or limitations. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, if any, even though the last is excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
Measurement Focus, Basis of Accounting and Basis of Presentation: The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements are met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period, with the exception of property taxes. Property taxes are considered to be available if they are collected within 60 days of the current fiscal period. Amounts received after the availability period are reported as unavailable revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due.
Major revenues that are determined to be susceptible to accrual include property taxes and assessments, sales taxes, franchise taxes, charges for services, intergovernmental revenues, and earnings on investments. Sales taxes collected and held by the state at year end on behalf of the government are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the government and are recognized as revenue at that time. Entitlements and shared revenues (government mandated nonexchange transactions) are recognized when the City has satisfied all applicable eligibility requirements and if the amounts are measurable. If the grant funds are received before the revenue recognition criteria are satisfied, the unearned amounts are reported as unearned revenue.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
The City reports the following major governmental funds:
General Fund – The General Fund is the primary operating fund of the City. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
9A70
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Projects Fund – The Capital Projects Fund is used to account for financial resources used for the acquisition or construction of major capital facilities.
The City reports the following major enterprise fund:
Sewer Fund – The Sewer Fund is used to account for the operations of the City’s sewer services.
Additionally, the City reports the following fund types:
GOVERNMENTAL FUNDS
Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of specific revenue sources (not including private purpose trusts or major capital projects) that are legally restricted to expenditures for specified purposes.
Capital Projects Funds – The Capital Projects Funds are used to account for financial resources that are restricted, committed or assigned to expenditure for capital outlays, including the acquisition or construction of major capital facilities and other capital assets other than those financed by proprietary funds.
PROPRIETARY FUNDS
Enterprise Funds – Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise fund are charges to customers or other funds for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
Cash and Cash Equivalents: The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition, including the City’s investment in California Local Agency Investment Fund (LAIF).
Receivables and Payables: Sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable and considered available if received within 90 days of year end.
Property taxes related to the current fiscal year are accrued as revenue and accounts receivable and considered available if received within 60 days of year-end. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and 9A71
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) collectible. Unbilled utility revenue earned is recognized as revenue and accounts receivable in the enterprise funds. An allowance for doubtful accounts of $20,000 has been provided in the Sewer Fund for accounts that are deemed uncollectible.
Transactions between funds that represent lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Eliminations have not been made between or within the fund types.
Property Taxes: The County of Placer (the County) is responsible for the collection and allocation of property taxes. Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed in accordance with statutory formulas. The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year end. Secured property taxes are levied on or before January 1 of each year. They become a lien on real property on January 1. These taxes are paid in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, costs and interest when paid. These taxes are secured by liens on the property being taxed.
The term “unsecured” refers to taxes on personal property other than land and buildings. Property tax revenues are recognized in the fiscal year for which they are levied, provided they are due and collected within sixty days after fiscal year-end. The County apportions secured property tax revenue in accordance with the alternate methods of distribution, the “Teeter Plan,” as prescribed by Section 4717 of the California Revenue and Taxation code. Therefore, the City receives 100% of the secured property tax levies to which it is entitled, whether or not collected. Unsecured delinquent taxes are considered fully collectible.
These taxes are recognized as intergovernmental revenues only if they are received from the County within 60 days after year end for the governmental funds and are recognized when earned for government-wide presentation regardless of the timing of the related cash flows.
Capital Assets: Capital assets for governmental fund types of the City are not capitalized in the funds used to acquire or construct them. Capital acquisitions are reflected as expenditures in the governmental fund, and the related assets are reported in the government-wide financial statements at historical cost or estimated historical cost if purchased or constructed. Contributed capital assets are recorded at their acquisition value, which is the price that would be paid to acquire and asset with equivalent service potential in an orderly market transaction at the acquisition date. Public domain (infrastructure) capital assets consisting of certain improvements other than buildings, but including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems have been capitalized prospectively beginning July 1, 2003.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not included in the current year’s additions to governmental or business-type capital assets. Capital assets are depreciated using the straight-line method over the following useful lives:
9A72
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Buildings and improvements 10 to 50 years
Sewer facility improvements and design costs 20 to 40 years Safety equipment 5 to 10 years
Vehicles and heavy equipment 5 to 15 years
Furniture and other equipment 5 to 7 years
It is the policy of the City to capitalize all land at any value, building and facility improvements above $25,000, equipment above $5,000, and eventually infrastructure assets above $100,000. Costs of assets sold or retired and the resulting gain or loss is included in the operating statement of the related proprietary fund. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale. The proceeds reported in the governmental fund are eliminated and the gain or loss on sale is reported in the government-wide presentation.
Compensated Absences: It is the City’s policy to permit employees to accumulate earned but unused vacation. Vacation credits must be used during the next succeeding year. Vacation is accrued when earned in the government-wide presentation and in the proprietary funds and reported as a fund liability.
Amounts that are expected to be liquidated with expendable available financial resources, for example, as a result of employee resignations or retirements that are currently payable, are reported as expenditures and a fund liability of the governmental fund that will pay it. Amounts not expected to be liquidated with expendable available financial resources represent a reconciling item between the fund and governmentwide presentation. No expenditure is reported in the governmental fund financial statements for these amounts.
Unused vacation is paid to employees upon termination. The maximum vacation accrual for represented employees is one times the employees’ annual vacation leave credits and the maximum vacation accrual for unrepresented employees is two times the employees’ annual vacation leave credits. There is no limit as to the accrual of sick leave. Sick leave is not accrued as compensated absences because it is not payable upon termination. However, sick leave may be converted to service credits under the City’s defined benefit pension plan.
Long-term Obligations: Long-term liabilities of governmental funds are reported at face value in the government-wide financial statements and represent a reconciling item between the fund and governmentwide presentation. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the government-wide financial statements and represent a reconciling item between the fund and government-wide presentation. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate funds.
For governmental fund types, proceeds from borrowing are reported as another financing source net of the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures.
Deferred Outflows and Inflows of Resources: In addition to assets and liabilities, the statement of financial position reports a separate section for deferred outflows and deferred inflows of resources.
Deferred outflows of resources represent a consumption of net assets or fund balance by the government that is applicable to a future reporting period. Deferred inflows of resources represent an acquisition of net assets or fund balance that is applicable to a future reporting period. These amounts will not be 9A73
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) recognized as an outflow of resources (expenditure/expense) or an inflow of resources (revenue) until the earnings process is complete. The governmental funds report unavailable revenues for grants and other revenues when the amounts meet the asset recognition criteria under GASB 33 and were accrued as receivables, but the amounts were not received in the availability period. Deferred outflows and inflows of resources include amounts deferred related to the City’s pension plan under GASB Statement No. 68 as described in Note H and related to leases receivable as described in Note D.
Pension Plan: For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to the pension plan, and pension expense, information about the fiduciary net position of the City’s California Public Employee’s Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Equity: In the fund financial statements, governmental funds report nonspendable, restricted, committed, assigned and unassigned balances.
Nonspendable Funds – Fund balance should be reported as nonspendable when the amounts cannot be spent because they are either not in spendable form, or are legally or contractually required to be maintained intact. Nonspendable balances are not expected to be converted to cash within the next operating cycle, which comprise prepaid items and long-term receivables.
Restricted Funds – Fund balance should be reported as restricted when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.
Committed Funds – Fund balance should be reported as committed when the amounts can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority, the City Council. These amounts cannot be used for any other purpose unless the City Council modifies, or removes the fund balance commitment.
Assigned Funds – Fund balance should be reported as assigned when the amounts are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed.
Unassigned Funds – Unassigned fund balance is the residual classification of the City’s funds and includes all spendable amounts that have not been restricted, committed, or assigned to specific purposes.
Net Position: The government-wide financial statements present net position. Net position is categorized as the net investment in capital assets, restricted and unrestricted.
Net Investment in Capital Assets – This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balances of debt that is attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
9A74
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Unrestricted Net Position – This category represents net position of the City not restricted for any project or other purpose.
The City Council establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted, committed, assigned and unassigned resources as they are needed. The City’s committed, assigned, or unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.
Use of Estimates: The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Budgetary Information: The City Council annually adopts the budget resolution for all operating funds of the City. Budgetary control is legally maintained at the fund level. Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30.
All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year. Amounts shown in the financial statements represent the original budgeted amounts and all supplemental appropriations. The supplemental appropriations were immaterial. The budgetary data is prepared on the modified accrual basis consistent with the related “actual” amounts. The City does not use encumbrance accounting.
New Pronouncements: In June 2022, the GASB issued Statement No. 101, Compensated Absences. This statement requires that liabilities for compensated absences be recognized for leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or paid in cash or settled through noncash means and leave that has been used but not paid in cash or settled through noncash means. Leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in the liability for compensated absences. This Statement requires that a liability for certain types of compensated absences, including parental leave, military leave and jury duty leave, not be recognized until the leave commences.
Certain salary related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. Governments are allowed to disclose the net change in the liability if identified as such in the footnotes to the financial statements. The provisions of this Statement are effective for years beginning after December 15, 2023.
9A75
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City is currently analyzing the impact of this new Statement on the financial statements.
NOTE B – CASH AND INVESTMENTS
The City follows the practice of pooling cash and investments of all funds. Cash represents cash on hand, demand deposits in the bank and amounts invested in the State of California Local Agency Investment Fund (LAIF). Cash and investments at June 30, 2022 are classified in the accompanying financial statements as follows:
Governmental Business-Type
Activities Activities Total
Cash and investments $ 5,341,440 $ 2,335,720 $ 7,677,160 Restricted cash and investments 1,122,058 1,122,058
$ 5,341,440 $ 3,457,778 $ 8,799,218
As of June 30, 2022, the City’s cash and investments consisted of the following:
Cash on hand $ 300
Deposits in financial institutions 94,384
Investments
California Local Agency Investment Fund 8,704,534
Total cash and investments 8,799,218 $
Investment policy: California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 - Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
9A76
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE B – CASH AND INVESTMENTS (Continued)
Maximum Maximum
Maximum Percentage Investment
Maturity Of Portfolio In One Issuer
U.S. Treasury obligations 5 years None None
U.S. Agency securities 5 years None None
Local agency bonds 5 years None None
Mortgage-back securities 5 years 20% None
Bankers acceptances 180 days 40% 30%
High grade commercial paper 270 days 25% None
Negotiable certificates of deposit 5 years 30% None
LAIF N/A None None
Medium-term corporate notes 5 years 30% None
Repurchase Agreements 365 days None None
Money market mutual funds None 20% None
The City complied with the provisions of California Government Code pertaining to the types of investments held, institutions in which deposits were made and security requirements. The City will continue to monitor compliance with applicable statutes pertaining to public deposits and investments.
Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City’s investment in LAIF has an average maturity of 311 days.
Credit Risk: Generally, credit risk is the risk that an issue of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s only investment is in LAIF, which is not rated.
Custodial Credit Risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Governmental Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.
California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2022, the carrying amount of the City’s deposits was $94,384 and the balance in financial institutions was $182,692. All balances were covered by federal depository insurance and if it had exceeded the FDIC insurance.
9A77
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE B – CASH AND INVESTMENTS (Continued)
Investment in LAIF: LAIF is stated at amortized cost, which approximates fair value. The LAIF is a special fund of the California State Treasury through which local governments may pool investments.
The total fair value amount invested by all public agencies in LAIF is $231,570,067,770, which is managed by the State Treasurer. Of that amount, 1.88% is invested in structured notes and asset-backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
NOTE C – INTERFUND TRANSACTIONS
Interfund balances at June 30, 2022 were as follows:
Due from
Other Funds
General
Due to Other Funds Fund
Capital Projects Fund 147,560 $
The due to/from balance was to provide resources to the Capital Projects Fund to pay project expenditures until receivables are collected.
Transfers during the year ended June 30, 2022 were as follows:
Enterprise
Capital Transportation
Transfers out General Projects and Road Sewer Total
Major Governmental Funds:
General 108 $ $ 108
Nonmajor Governmental Funds:
CDBG $ 9,006 9,006
Gas Tax $ 10,162 10,162
Mitigation Funds 228,371 228,371
Grant Funds $ 196,392 196,392
$ 9,006 $ 228,479 $ 10,162 $ 196,392 $ 444,039
Transfers In
Nonmajor Governmental
Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them.
9A78
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE D – LEASES RECEIVABLE
As a result of the implementation of GASB No. 87, the City records a lease receivable and deferred inflow for the present value of the future payments received under agreements for leases of the right to construct, operate, maintain, repair, and remove billboard signs within the City. The City leases billboard rights under two lease agreements, one that expires August 2038 for a monthly rent of $515, and another that expires November 2037 for a monthly rent of $3,102. These leases have rent increases every five years at the CPI rate. For purposes of discounting future payments on the leases, the City used a discount rate of 5.75%. The deferred inflow is being amortized over 17.17 years, the remaining term of the leases.
As a result of implementing GASB No. 87, the City reported leases receivable and deferred inflows of resources of $518,296 as of July 1, 2021. The City recognized $43,404 of lease and interest revenue during the year ended June 30, 2022 under these leases.
NOTE E – CAPITAL ASSETS
Governmental capital assets activity for the year ended June 30, 2022 was as follows:
Balance at Balance at
June 30, 2021 Additions Retirements Transfers June 30, 2022 Capital assets, not being depreciated:
Land $ 1,379,087 $ 1,379,087
Easements 68,310 68,310
Construction in progress 107,813 $ 71,616 $ (74,523) 104,906 Total capital assets,
not being depreciated 1,555,210 71,616 (74,523) 1,552,303 Capital assets, being depreciated:
Buildings and improvements 10,467,101 156,737 74,523 10,698,361 Vehicles 662,762 $ (492,338) 170,424
Machinery and equipment 470,511 13,502 (292,686) 191,327 Furniture and fixtures 15,926 (842) 15,084
Total capital assets,
being depreciated 11,616,300 170,239 (785,866) 74,523 11,075,196 Less accumulated depreciation for:
Buildings and improvements (2,042,074) (277,050) (2,319,124) Vehicles (517,626) (8,801) 356,003 (170,424)
Machinery and equipment (414,732) (14,999) 271,502 (158,229) Furniture and fixtures (11,449) (1,791) 842 (12,398)
Total accumulated depreciation (2,985,881) (302,641) 628,347 (2,660,175) Capital assets being
depreciated, net 8,630,419 (132,402) (157,519) 74,523 8,415,021
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $ 10,185,629 $ (60,786) $ (157,519) $ 9,967,324 - $ 9A79
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE E – CAPITAL ASSETS (Continued)
Depreciation expense for governmental capital assets was charged to functions as follows:
General governmental $ 17,101
Public safety 22,380
Public works 176,671
Culture and recreation 18,229
Community development 68,260
Total governmental activities depreciation expense $ 302,641 Business-type capital assets activities for the year ended June 30, 2022 was as follows:
Balance at Balance at
June 30, 2021 Additions Retirements Transfers June 30, 2022 Capital assets,
not being depreciated:
Land 134,700 $ 134,700 $
Construction in progress 100,486 $ 1,358,101 $ (540,352) 918,235 Total capital assets,
not being depreciated 235,186 1,358,101 (540,352) 1,052,935 Capital assets, being depreciated:
Buildings and improvements 25,829,796 27,956 25,857,752 Vehicles 44,053 44,053
Machinery and equipment 723,471 10,870 512,396 1,246,737 Total capital assets,
being depreciated 26,597,320 10,870 540,352 27,148,542
Less accumulated depreciation for:
Buildings and improvements (8,271,817) (651,884) (8,923,701) Vehicles (23,900) (7,555) (31,455)
Machinery and equipment (604,015) (49,762) (653,777)
Total accumulated depreciation (8,899,732) (709,201) (9,608,933) Capital assets being
depreciated, net (698,331) 17,697,588 540,352 17,539,609
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ 17,932,774 $ 659,770 $ - $ - $ 18,592,544 Depreciation expense for business-type capital assets was charged to functions as follows:
Sewer $ 709,201
Total business-type activities depreciation expense $ 709,201 9A80
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE F – LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2022 was as follows:
Balance Balance Due Within
June 30, 2021 Additions Reductions June 30, 2022 One Year Governmental Activities:
Postclosure landfill costs 398,873 $ $ (9,598) $ 389,275 Compensated absences 12,012 $ 4,176 16,188 8,094$
Net pension liability 68,445 (68,445) -
Governmental activities
long-term liabilities 479,330 $ $ 4,176 $ (78,043) $ 405,463 $ 8,094 Business-Type Activities:
State loan - restructured 7,198,411 $ $ (366,991) $ 6,831,420 $ 370,660 Note Payable 104,629 104,629 104,629
Total bonds, loans,
settlements payable 7,303,040 (366,991) 6,936,049 475,289 Compensated absences 23,280 $ 1,458 24,738 12,369
Net pension liability 77,493 (77,493) -
Business-type activities
long-term liabilities 7,403,813 $ $ 1,458 $ (444,484) $ 6,960,787 $ 487,658 Note: The change in the compensated absences liability is presented as a net change.
Long-term debt of the City’s governmental activities consisted of the following as of June 30, 2022:
Postclosure Landfill Costs: State and Federal laws and regulations require the City to perform certain maintenance and monitoring functions on its landfill for 30 years after closure. The City has recorded a liability for landfill closure in the General Fund in accordance with GASB 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Costs. The City hired a private consultant to perform an analysis to determine estimated total cost of the landfill closure, postclosure care costs, total capacity and remaining life. The City’s landfill closure liability, based on landfill capacity used to date, is recorded based on the information provided by the consultant’s analysis. The consultant’s analysis is an estimate only and is subject to yearly changes due to inflation or deflation, technology, or applicable laws and regulations. The City is currently estimating that 100% of the landfill is used and there is no remaining life. As of June 30, 2022, the remaining closure and postclosure maintenance costs to be recognized over the next 17 years is $389,275.
Long-term debt of the City’s business-type activities consisted of the following as of June 30, 2022:
State Loan – Restructured – Private Placement: On September 19, 2011, the City entered into a loan agreement with the State Water Resource Control Board for $12,825,600 at an interest rate of 1%. The City received total proceeds of $9,506,600 under the agreement from October 2011 to April 2014, which included the $36,000 to refund the City's 1978 USDA Sewer Revenue Bonds. The State forgave $3,319,000 of the loan principal during 2013. Annual principal and interest payments of $438,974 are due on October 31 each year through October 31, 2038. The loan is secured by a lien on and pledge of net revenues of the Sewer Fund. The agreement requires net revenues, as defined in the agreement, to be at least 1.1 times the total annual debt service payments. 9A81
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE F – LONG-TERM LIABILITIES (Continued)
Should the City violate the terms of the loan agreement, the City will be required to pay all principal, accrued interest and penalties at the termination date. Interest will be accrued at the highest legal rate of interest from date of termination to the repayment date.
Notes Payable – Private Placement: On August 9, 2017, the City entered into an agreement with Sierra Oaks Estates, LLC to design and construct sewer improvements, whereby the City would reimburse Sierra Oaks actual costs. The note does not bear interest. In lieu of actual principal and interest payments, sewer impact fees for each unit in the development will be credited against the amount owed to Sierra Oaks Estate, LLC until the note is paid in full.
Principal and interest payments on debt are due as follows:
June 30 Principal Interest Total
2023 $ 370,660 68,314$ 438,974$
2024 374,366 64,608 438,974
2025 378,110 60,864 438,974
2026 381,891 57,083 438,974
2027 385,710 53,264 438,974
2028-2032 1,987,183 207,685 2,194,868
2033-2037 2,088,548 106,320 2,194,868
2038-2039 864,952 12,996 877,948
Totals 6,831,420 $ $ 631,134 7,462,554$
State Loan - Restructured
Pledged Revenues: The City has pledged future Sewer Fund revenues, net of specified operating expenses, to repay its state loan from the SWRCB issued in June 2012 with total proceeds of $9,506,600.
Proceeds from the loan were used to refinance a previous SWRCB loan used to make improvements on the City’s wastewater treatment plant. The loan is payable solely from sewer customer net revenues and is payable through October 2038. Total principal and interest remaining to be paid on the loan was $7,462,554 at June 30, 2022. Total cash basis principal and interest payments on the loan during the year ended June 30, 2022 were $438,974 and net revenues were $1,037,006, respectively.
NOTE G – NET POSITION/FUND BALANCE
The following are the purposes for which net positions are restricted:
Governmental Business-Type
Activities Activities
Mitigation projects $ 733,421
Landfill 443,751
Street projects 230,138
Recycling 22,938
Economic development 12,285
Debt service reserve $ 438,974
Capital improvements 443,018
Replacement of short-lived assets 240,065
$ 1,442,533 $ 1,122,057
9A82
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE G – NET POSITION/FUND BALANCE (Continued)
In addition to these restricted amounts, the City Council had designated $360,000 from the operating reserve and $400,000 for capital projects in business-type activities at June 30, 2022.
The following are the components of the Governmental Funds fund balances:
Nonmajor Total
Governmental Governmental
General Funds Funds
Fund balances:
Nonspendable:
Long-term receivables $ 28,920 $ 12,284 $ 41,204
Prepaid expenses 3,000 3,000
Total Nonspendable 31,920 12,284 44,204
Restricted for:
Landfill closure 833,025 833,025
Street projects 230,138 230,138
Mitigation projects 733,421 733,421
Recycling 22,938 22,938
Total Restricted 833,025 986,497 1,819,522
Committed for:
Operating Reserve 500,000 500,000
Pension Reserve 145,000 145,000
Capital Reserve 300,000 300,000
Total Committed 945,000 945,000
Assigned for:
Fire services 93,506 93,506
Total Assigned 93,506 93,506
Unassigned 2,735,767 (119,971) 2,615,796
Total Unassigned 2,735,767 (119,971) 2,615,796
TOTAL FUND BALANCES 4,639,218 $ $ 878,810 $ 5,518,028
The City Council has designated $500,000 of General Fund committed fund balance as an operating reserve to protect against revenue shortfalls and unpredicted one-time expenditures.
For the year ended June 30, 2022, the City reclassified the following funds:
The Fire Capital fund was previously classified as a capital projects fund. This fund comprises of amounts received from the State in the past for mutual aid response. Because these amounts are not restricted by external parties for specific capital project use, this fund was reclassified to the General fund for reporting purposes. Furthermore, the fund balance is now classified as assigned rather than restricted as the amounts are designated by management to be used for fire services.
The resulting effect of the reclassification is an increase of $93,157 to the General Fund beginning fund balance, and a decrease of $93,157 to the Capital Projects Fund beginning fund balance.
9A83
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE G – NET POSITION/FUND BALANCE (Continued)
The construction fees funds were previously classified under the Capital Projects Fund. The revenue for these funds is from a residential construction tax imposed on the privilege of constructing any mobile home lot or residential dwelling unit in the City. Because of the special revenue source, these funds are now classified under the Mitigation Funds. The resulting effect of the reclassification is an increase of $151,086 to the Mitigation Funds beginning fund balance and a decrease of $151,086 to the Capital Projects Fund beginning fund balance.
NOTE H – PENSION PLAN
Plan Description: All qualified permanent and probationary employees are eligible to participate in the City’s cost-sharing multiple-employer defined benefit pension plan (the Plan) administered by the California Public Employees’ Retirement System (CalPERS). The City participates in the Miscellaneous Risk Pool and the following cost-sharing rate plans:
Miscellaneous Rate Plan
PEPRA Miscellaneous Rate Plan
Benefit provisions under the Plan are established by State statute and Council resolution. CalPERS issues publicly available reports that include a full description of the Plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.
Benefits Provided: CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (52 for PEPRA Miscellaneous Rate Plan) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for the Plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits in effect at June 30, 2022, are summarized as follows:
PEPRA
Miscellaneous Miscellaneous
Rate Plan Rate Plan
(Prior to (On or after
Hire date January 1, 2013) January 1, 2013)
Benefit formula (at full retirement) 2.0% @ 60 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 7.000% 6.750%
Required employer contribution rates 9.130% 7.590%
9A84
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE H – PENSION PLAN (Continued)
In addition to the contribution rates above, the City was also required to make payments of $12,711 toward its unfunded actuarial liability during the year ended June 30, 2022. The Miscellaneous Rate Plan is closed to new members that are not already CalPERS eligible participants.
Contributions: Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2022, the employer contribution made to the Plan was $64,454.
Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources: As of June 30, 2022, the City reported a net pension asset for its proportionate share of the net pension liability of $3,890.
The City’s net pension asset is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the Plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2021 was as follows:
Miscellaneous
Plan
Proportion - June 30, 2021 0.00346%
Proportion - June 30, 2022 -0.00020%
Change - Increase (Decrease) -0.00366%
For the year ended June 30, 2022, the City recognized a pension credit of $84,047. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the Plan combined from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 64,454 Changes in assumptions
Net differences between projected and actual earnings
on plan investments 3,396
Difference between actual and allocated contributions 21,299 Difference between expected and actual experience (436) Adjustment due to differences in proportions 36,251
Total $ 124,964 $ -
9A85
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE H – PENSION PLAN (Continued)
The amount reported as deferred outflows of resources related to contributions subsequent to the measurement date above will be recognized as an addition of the net pension asset in the subsequent year.
Other amounts reported as net deferred inflows of resources related to the Plan will be recognized as pension expense as follows:
Fiscal Year Ended
June 30
2023 $ 30,325
2024 20,555
2025 8,692
2026 938
$ 60,510
Actuarial Assumptions: The total pension liabilities in the actuarial valuations for the Plan was determined using the following actuarial assumptions:
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.15% (a)
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase Varies depending on entry age and service Mortality (1) Derived using CalPERS Membership Data
(a) Net of pension plan investment expenses, including inflation (1) The underlying mortality assumptions were developed based on CalPERS-specific data. The table includes 15 years of mortality improvements usign Society of Actuaries Scale 90% of scale MP 2016. Further details can be found in the December 2017 experience study report based on demographic data from 1997 to 2015 on the CalPERS website.
Discount Rate: The discount rate used to measure the total pension liability was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets.
Therefore, the current discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
9A86
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE H – PENSION PLAN (Continued)
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects the long-term expected real rate of return by asset class for the Plan. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.
New Strategic Real Return Real Return
Asset Class (c) Allocation Years 1 - 10(a) Years 11+(b) Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% (0.92)%
Total 100.0%
(a) An expected inflation of 2.0% used for this period. (b) An expected inflation of 2.92% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
1% Decrease 6.15%
Net Pension Liability/(Asset) 163,756 $
Current Discount Rate 7.15%
Net Pension Liability/(Asset) (3,890) $
1% Increase 8.15%
Net Pension Liability/(Asset) (142,481) $
9A87
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE H – PENSION PLAN (Continued)
Fiduciary Net Position: Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
NOTE I – INSURANCE
The City is a member of the Small Cities Organized Risk Effort (SCORE) with other northern California cities. SCORE is a joint powers authority organized in accordance with Article 1, Chapter 5, Division 7, Title I of the California Government Fund Programs. The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers’ compensation benefits for their employees and to provide liability insurance. SCORE provides claims processing administrative services, risk management services and actuarial studies. A member from each city governs SCORE. The City of Colfax council members do not have significant oversight responsibility, since they evenly share all factors of responsibility with the other cities. The City does not retain the risk of loss. However, ultimate liability for payment of claims and insurance premiums resides with member cities. SCORE is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities.
If SCORE becomes insolvent, the City is responsible only to the extent of any deficiency in its equity balance. SCORE establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency, and other economic and social factors.
A provision for inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made.
The City’s insurance coverage and the respective coverage providers are as follows:
Banking Layer/
Coverage SCORE Excess Deductible
Liability $ 500,000 $ 39,500,000 $ 25,000
Employers liability/crime 1,000,000 2,500
Property 500,000,000 5,000
Boiler and machinery 100,000,000 10,000
Mobile equipment 7,000,000 25,000
Workers Compensation liability 250,000 4,750,000 50,000 The City also carries commercial insurance for additional liability and property insurance coverage.
There have been no significant reductions in insurance coverage from coverage in the prior fiscal year.
Also, settlements have not exceeded the insurance coverage for the past three fiscal years. The audited financial statements of SCORE are available from SCORE at www.scorejpa.org. 9A88
CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2022
NOTE J – COMMITMENTS AND CONTINGENCIES
Contract Commitments: The City had the following contract commitments at June 30, 2022:
Remaining
Contract
Amount
Fire services $ 150,000
Grant Contingency: The City participates in various federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. No audits by the grantors have occurred in the current fiscal year. The amount, if any, which may be disallowed by the granting agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial.
Legal Contingency: The City is party to various claims, legal actions and complaints that arise in the normal operation of business. Management and the City’s legal counsel believe that there are no material loss contingencies that would have a material adverse impact on the financial position of the City. 9A89
COMPLIANCE REPORT
REQUIRED SUPPLEMENTARY INFORMATION
9A90
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9A91
Actual Amounts
(Budgetary
Basis) Variance with
Original Final (See Note A) Final Budget
REVENUES:
Taxes $ 1,798,000 $ 1,790,000 $ 1,995,243 $ 205,243
Licenses, fees and permits 112,500 154,792 139,122 (15,670) Intergovernmental revenues 173,000 196,500 221,247 24,747 Charges for services 148,550 218,550 334,564 116,014
Fines, forfeitures and penalties 2,500 2,500 3,962 1,462 Use of money and property 120,560 88,000 118,259 30,259 Other revenue 1,000 14,000 9,758 (4,242)
Total revenues 2,356,110 2,464,342 2,822,155 357,813
EXPENDITURES
Current:
General government 828,664 883,760 932,808 (49,048)
Public safety 886,696 817,726 818,103 (377)
Public works 187,405 184,149 159,281 24,868
Engineering services 44,400 132,000 146,178 (14,178)
Culture and recreation 142,045 136,977 103,508 33,469
Capital outlay 180,000 180,000 13,484 166,516
Total expenditures 2,269,210 2,334,612 2,173,362 161,250 Excess (deficiency) of revenues
over expenditures 86,900 129,730 648,793 519,063
OTHER FINANCING SOURCES (USES):
Transfers in 6,000 6,000 9,006 3,006
Transfers out (270,655) (270,655) (108) 270,547
Total other financing sources (uses) (264,655) (264,655) 8,898 273,553 Net change in fund balance (177,755) (134,925) 657,691 792,616 Fund balance, beginning of year 3,981,527 3,981,527 3,981,527 Fund balance, end of year $ 3,803,772 $ 3,846,602 $ 4,639,218 $ 792,616 The accompanying notes are an integral part of these financial statements.
Budgeted Amounts
CITY OF COLFAX
For the Year Ended June 30, 2022
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND
9A92
June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, 2022 2021 2020 2019 2018 2017 2016 2015
Proportion of the net pension liability -0.00020% 0.00346% 0.00293% 0.00245% 0.00246% 0.00202% 0.00169% 0.00231% Proportionate share of the net pension liability (3,890) $ 145,938 $ 117,142 $ 92,380 $ 97,040 $ 70,057 $ 46,274 $ 57,010 $ Covered payroll - measurement period 591,701 $ 727,475 $ 639,107 $ 615,095 $ 595,177 $ 456,524 $ 367,481 $ 353,250 $ Proportionate share of the net pension liability as
a percentage of covered payroll -0.66% 20.06% 18.33% 15.02% 16.30% 15.35% 12.59% 16.14% Plan fiduciary net position as a percentage of the
total pension liability 100.31% 86.77% 86.84% 88.14% 84.22% 83.56% 78.40% 79.82% Notes to Schedule:
Reporting valuation date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Reporting measurement date June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, 2022 2021 2020 2019 2018 2017 2016 2015
Contractually required contribution - employer
fiscal year (actuarially determined) $ 64,454 $ 59,733 $ 63,773 $ 52,523 $ 44,554 $ 48,319 $ 33,408 $ 30,589 Contributions in relation to the actuarially
determined contributions (64,454) (59,733) (63,773) (52,523) (44,554) (48,319) (33,408) (30,589) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll - employer fiscal year $ 645,747 $ 591,701 $ 727,475 $ 639,107 $ 615,095 $ 595,177 $ 456,524 $ 367,481 Contributions as a percentage of covered payroll 9.98% 10.10% 8.77% 8.22% 7.24% 8.12% 7.32% 8.32% Notes to schedule:
Contribution valuation date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Methods and assumptions used to determine contribution rates:
Amortization cost method
Amortized method
Remaining amortization period
Asset valuation method
Inflation 2.500% 2.500% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Payroll growth 2.750% 2.750% 2.875% 3.00% 3.00% 3.00% 3.00% 3.00% Salary increases
Investment rate of return and discount rate 7.00% 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age
Mortality
Omitted years: GASB 68 was implemented during the year ended June 30, 2015. No information was avaialble prior to this date. Information will be added prospectively as becomes available until 10 years are reported.
Entry age normal cost method
Level percentage of payroll, closed
Varies, but not more than 30 years
Market Value
50-67 years. Probabilities of retirement are based on the most recent CalPERS Experience Study.
Most recent CalPERS Experience Study
Varies by Entry Age and Service
CITY OF COLFAX
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022
SCHEDULE OF THE PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY - MISCELLANEOUS PLAN (UNAUDITED)
Last 10 Years
Last 10 Years
SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN - MISCELLANEOUS PLAN (UNAUDITED) Change in benefit terms: None
Changes in assumptions: The discount rate was changed from 7.50% in 2015 to 7.65% in 2016 and to 7.15% in the 2018 valuation. 9A93
COMBINING STATEMENTS AND INDIVIDUAL FUND STATEMENT
9A94
Transportation Road
& Road Gas Maintenance
CDBG Fund Tax SB1/RSTBG
ASSETS:
Cash and investments 36,945$ 28,449$ 162,148$
Due from other governmental agencies 4,181 7,016
Interest receivable 287
Notes receivable 12,284$
Total assets 12,284$ 36,945$ 32,630$ 169,451$
LIABILITIES AND FUND BALANCES:
LIABILITIES:
Accounts payable 5,446$ 1,305$
Accrued expenses 2,137
Deferred revenue
Due to other funds
Total liabilities 7,583 1,305
Deferred Inflows of Resources
Unavailable Revenue
Total Deferred Inflows of Resources
FUND BALANCES:
Nonspendable 12,284$
Restricted 29,362 31,325 169,451$
Unassigned
Total fund balances 12,284 29,362 31,325 169,451
Total liabilities and fund balances 12,284$ 36,945$ 32,630$ 169,451$ The accompanying notes are an integral part of these financial statements.
CITY OF COLFAX
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2022
Special Revenue
9A95
Total
Nonmajor
Mitigation Beverage Oil Grant Capital Governmental
Funds Recycling Grant Funds Projects Funds
731,943$ 19,115$ 3,769$ 63,743$ $ 1,046,112
153,809$ 165,006
1,478 35 7 299 2,106
12,284
733,421$ 19,150$ 3,776$ 64,042$ 153,809$ $ 1,225,508
6,248$ $ 12,999
2,137
64,030$ 64,030
147,560 147,560
64,030 153,808 226,726
119,972 119,972
119,972 119,972
12,284
733,421$ 19,150$ 3,776$ 12 986,497
$ (119,971) (119,971)
733,421 19,150 3,776 12 (119,971) 878,810
733,421$ 19,150$ 3,776$ 64,042$ 153,809$ $ 1,225,508
Capital
Special Revenue Projects
9A96
Supplemental Transportation Road
Law & Road Gas Maintenance
Enforcement CDBG Fund Tax SB1/RSTBG
REVENUES:
Taxes 56,830$
Licenses, fees and permits 114$
Intergovernmental revenues 160,874$ 201,532 42,933$
Use of money and property 616$ 553
Total revenues 160,874 616 201,646 56,830 43,486
EXPENDITURES:
Current:
Public safety 160,874
Public works 194,711 15,343
Capital outlay
Total expenditures 160,874 194,711 15,343
Excess (deficiency) of revenues
over (under) expenditures 616 6,935 41,487 43,486
OTHER FINANCING SOURCES (USES):
Transfers in 10,162
Transfers out (9,006) (10,162)
Total other financing sources (uses) (9,006) 10,162 (10,162) Net change in fund balances (8,390) 17,097 31,325 43,486 Fund balances, beginning of year,
as previously reported 20,674 12,265 125,965
Reclassification of funds
Fund balances, beginning of year 20,674 12,265 125,965
Fund balances, end of year -$ 12,284$ 29,362$ 31,325$ 169,451$ The accompanying notes are an integral part of these financial statements.
CITY OF COLFAX
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2022
Special Revenue
9A97
Total
Nonmajor
Mitigation Beverage Oil Grant Capital Fire Governmental Funds Recycling Grant Funds Projects Capital Funds
$ 56,830
143,160$ 143,274
195,644$ 75,744$ 676,727
3,109 71$ 15$ 760 5,124
146,269 71 15 196,404 75,744 881,955
160,874
37,648 247,702
228,371 228,371
266,019 636,947
146,269 71 15 196,404 (190,275) 245,008
228,479 238,641
(228,371) (196,392) (443,931)
(228,371) (196,392) 228,479 (205,290)
(82,102) 71 15 12 38,204 39,718
664,437 19,079 3,761 (7,089) 93,157$ 932,249
151,086 (151,086) (93,157) (93,157)
815,523 19,079 3,761 (158,175) 839,092
733,421$ 19,150$ 3,776$ 12$ (119,971) $ -$ 878,810 $
Special Revenue
Capital
Projects
9A98
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9A99
COMPLIANCE REPORT
9A 100
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
City Council
City of Colfax, California
Colfax, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Colfax, California (the City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 7, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
9A 101
To the City Council
City of Colfax, California
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
December 7, 2022
9A 102
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
MANAGEMENT LETTER
City Council
City of Colfax
Colfax, California
In planning and performing our audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Colfax (the City) for the year ended June 30, 2022, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. Given these limitations during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
All prior year comments have been adequately addressed.
We would like to take this opportunity to acknowledge the courtesy and assistance extended to us during the course of the audit. This communication is intended solely for the information and use of the City Council, management, and others within the organization and does not affect our report dated December 7, 2022 on the financial statements of the City.
December 7, 2022
9A 103
50 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
GOVERNANCE LETTER
To the City Council
City of Colfax
Colfax, California
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Colfax, California (the City), for the year ended June 30, 2022, and have issued our report thereon dated December 7, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter to you dated June 16, 2022. Professional standards also require that we communicate to you the following information related to our audit.
Our Responsibility under U.S. Generally Accepted Auditing Standards, Government Auditing Standards As stated in our engagement letter dated June 16, 2022, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.
As part of our audit, we will consider the internal control of the City. Such considerations are solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will also perform tests of the City’s compliance with certain provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit.
Planned Scope and Timing of the Audit
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involves judgment about the number of transactions to be examined and the areas to be tested.
Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We noted no material weaknesses in internal control as a result of our audit. 9A 104
To the City Council
We have identified the following significant risks of material misstatement as part of planning our audit:
management override of controls and revenue recognition.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note A to the financial statements. The City implemented Governmental Accounts Standards Board (GASB) Statement No. 87, Leases. The implementation of GASB Statement No. 87 resulted in recognition of a lease receivable and deferred inflow. Note D to the financial statements describes the impact of GASB Statement No. 87 on the City’s financial statements. No other new accounting policies were adopted, and the application of existing policies was not changed during the year. We noted no transaction entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statement prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were determining the depreciable lives used for capital assets, allowance for doubtful accounts receivable, the accrual of the grant receivables and the computation of the net pension asset. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The net pension asset was determined by an actuarial valuation performed by CalPERS.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was the following:
Information on the City’s pension plan including the City’s share of the net pension asset of the CalPERS Miscellaneous Risk Pool, is shown in Note H of the financial statements. The City’s net pension asset at June 30, 2021, the most recent measurement date, was $3,890, which is reflected as an asset in the financial statements as of June 30, 2022. The City’s net pension liability became an asset in fiscal year 2021/22 due to unusually large investments gains on CalPERS plan assets. Disclosures related to the City’s postclosure landfill liability, loans and notes payable and other long-term liabilities are reported in Note F to the financial statements.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We posted 4 adjustments and closing entries during the audit, which included reclassifications for reporting purposes. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. 9A 105
To the City Council
The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgement, such uncorrected misstatements are immaterial to the financial statements under audit.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 7, 2022.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the required supplementary information (RSI) listed in the table of contents, which are RSI that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with the accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. 9A 106
To the City Council
Restriction on Use
This information is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
December 7, 2022
9A 107
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT TESTING
City Council
City of Colfax
Colfax, California
We have performed the procedures enumerated below to the accompanying calculation of the Appropriation Limit of the City of Colfax (the City) for the year ended June 30, 2022. The City management is responsible for complying with the appropriations limit calculation. The City and the League of California Cities (as presented in the publication entitled Agreed-Upon Procedures applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose to assist the Agency in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution.
This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures performed and our findings were as follows:
1. We obtained the City’s calculation of the 2021/2022 appropriations limit and compared the limit and annual adjustment factors included in the calculation to the limit and annual adjustment factors that were adopted by resolution of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. We compared the methodology used to determine the cost of living adjustment component to Article XIIIB which states that the City may annually adjust the component for either the change in California per capita personal income or, the percentage change in the City’s assessed valuation which is attributable to non-residential new construction. We recalculated the factor based on the above information.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the methodology used to determine the population adjustment component to Article XIIIB which states that the City may annually choose to adjust the component for either the change in population in the County in which the City is located, or the change in population within the unincorporated area of the County in which the City is located. We recalculated the factor based on the above information.
Finding: No exceptions were noted as a result of our procedures. 9A 108
City Council
City of Colfax
4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Calculation to the prior year appropriations limit adopted by the City Council for the prior year.
Finding: No exceptions were noted as a result of our procedures.
5. We recalculated the 2021/2022 Appropriation Limit by multiplying the product of the two above factors by the 2020/2021 appropriation limit.
Finding: No exceptions were noted as a result of our procedures.
6. We compared the City’s actual revenues to the computed appropriation limit for fiscal year 2021/2022.
Finding: For the 2021/2022 fiscal year, the City’s actual revenues subject to the appropriations limit did not exceed the appropriation limit adopted by resolution of the City Council.
We were engaged by the Authority to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying calculation of the Appropriation Limit. Accordingly, we do not express such an opinion or conclusion. No procedures have been performed with respect to the determination of the Appropriations Limit for the base year, as defined by Article XIII-B of the California Constitution.
We are required to be independent of the City of Colfax and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the use of the City of Colfax and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited.
December 7, 2022
9A 109
APPENDIX A
CITY OF COLFAX
APPROPRIATION LIMIT CALCULATION
Year Ended June 30, 2022
APPROPRIATIONS LIMIT
ADOPTED BY CITY:
Recorded in Final 2021/2022 Budget $6,440,054
APPROPRIATIONS LIMIT
COMPUTATION PER REVIEW:
2020/2021 Appropriations Limit $6,001,002
Cost of living factor:
Change in California per capita income 1.0573
Population Adjustment Factor:
Population change in County of Placer 1.0150
Auditor computed limitation $6,440,054
Variance $0
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Staff Report to City Council
FOR THE JANUARY 25, 2023 REGULAR CITY COUNCIL MEETING
From: Wes Heathcock, City Manager
Prepared by: Emmanuel Ursu, Planning Director
Subject: Short-Term Rentals
Budget Impact Overview:
N/A: √ Funded: Un-funded: Amount: Fund(s):
Summary/Background
A short-term rental unit is a residential unit occupied for less than 30 days. The Colfax Municipal Code allows lodging (in hotels, motels, and bed and breakfast inns) in commercial zones and is silent on short term rentals. Internet platforms (such as Vrbo and Airbnb) have made advertising and managing short term rentals feasible for individuals and they have become a source of income for many, especially in popular vacation and business destinations.
Staff is aware of a few short-term rentals operating within the City of Colfax and occasionally staff receives inquiries about establishing a short-term rental from prospective operators. To date, no complaints about short term rentals have been filed with the City. If permitted to operate in Colfax, short term rentals would be subject to the transient occupancy tax (TOT) which was increased from 8% to 10% by voters through the passage of Measure B in November 2022.
Discussion
Staff seeks Council direction whether to prepare a draft ordinance to allow short-term rentals. If directed to initiate preparation of a draft ordinance, some factors staff will seek to address are as follows:
1. Input from existing short-term rental operators
2. Input from residents
3. Potential negative impacts on the community associated with:
a. Traffic
b. Parking
c. Noise
d. Loss of housing stock
4. Estimated TOT revenue
5. Other factors as directed by the City Council
Attachments
None
RECOMMENDED ACTION: Provide staff direction on whether to prepare a draft ordinance to allow short-term rentals.
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City of Colfax Council Committee Assignments
Staff Report January 25, 2023
Staff Report to City Council
FOR THE JANUARY 25, 2023 REGULAR CITY COUNCIL MEETING
From: Wes Heathcock, City Manager
Prepared by: Marguerite Bailey, City Clerk
Subject: Council Committee Assignments
Budget Impact Overview:
N/A: √ Funded: Un-funded: Amount: Fund(s):
Summary/Background
Each year the Mayor recommends assignments for Council Members, staff or the public to serve on the boards of local agencies, advisory boards, and committees within the surrounding area. Generally, Council Members request their assignments and develop expertise to represent the City to improve resources or influence within the region.
A brief description of each board and its impact on the City is attached. The Mayor’s recommendations for this year’s appointments of Council Members to the Commissions, Boards, and Committees are attached.
Attachments:
1. Committee Descriptions
2. 2023 Council Committee Assignments
RECOMMENDED ACTION: Approve City Council Committee Assignments for 2023. 9C
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Optional
Placer Regional Homelessness
Action Plan Ad hoc Required
Placer County is seeking to make homelessness rare, brief, and non-recurring by supporting our unhoused community members in a coordinated system of care as they work towards selfsustaining futures.
Placer County Flood Control and
Water Conservation District
(Board of Directors)
Required The Board oversees the Placer County District in addressing flood control, drainage, and storm water management issues arising with development growth occurring in the region.
Colfax Skate Park Required Meets with City Manager to discuss ongoing development.
ISO Ad hoc Required Is needed to negotiate rates for the City's Fire Insurance and obtain the best coverage and lowest rates.
Pioneer Community Energy Required
Pioneer was established to provide electricity at lower rates than other providers. The board consists of elected representatives from the County and 5 Cities. https://pioneercommunityenergy.ca.gov/about-us/
Colfax Bike Park Required Meets with City Manager to discuss potential development.
Colfax Schools Liaison Optional
Committee Assignment Descriptions
League of California Cities
Sacramento Valley Division
Liaison
Optional
City Council created this position to ensure at least one Councilmember is tasked with fostering communication between Council and the two local schools.
Placer County Selection
Committee Required
Bianchini Advisory Board Required
Sierra Vista Community Center
Liaison Optional
Committee Required/
Optional Description
Placer Sierra Fire Safe Council
City of Colfax Council Chambers Optional
The League is an association of city officials for training, information exchange, and combining of resources to influence State policy decisions that affect cities. The Sacramento Valley Division is a regional component of the League that insures Northern California cities have a voice in state policies. https://www.cacities.org/ Carl Bianchini endowed the community a sizeable trust to be used for youth and senior programs. The Bianchini Advisory Board was created to oversee appropriations of the fund to the Sierra Vista Community Center.
Sierra Vista Community Center Liaison is ideally a different person than the Bianchini representative. The liaison attends Sierra Vista Community Center board meetings and reports information back to Council.
The Fire Safe Council evaluates fire threat, assures firefighting resources are available, develops a Community Fire Safe Plan and supports efforts for wild land and community fire management. https://www.placer.ca.gov/bos/committees-and-commissions/placer-sierra-firesafe-council The Selection Committee consists of the Mayor of the seven Cities within Placer County. The Committee meets to appoint and confirm members of various boards and commissions within the County.
WACMAC is an advisory board of area volunteers which advises the Supervisor on matters of concern related to the area outside City limits. The City Councilmember serves as a Liaison between WACMAC and the Council.
Weimar, Applegate, Colfax/
Municipal Advisory Council
(WAC/MAC)
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Sacramento Area Council of
Governments (SACOG) Board of
Directors
Required
Association of local governments in the 6 county Sacramento region. Provides transportation planning and funding for the region, and serves as a forum for study and resolution of regional issues - affordable housing, clean air, bicycle networks, etc.
Placer County air Pollution
Control District (PCAPCD) Required
The District regulates and seeks reduction in air pollutant emissions; partners with local municipalities to develop and support emission reduction strategies; and leverages district and local funding with state and federal monies.
Placer County Mosquito and
Vector Control District (PMVCD) Required The District controls vector populations to reduce their impact upon public health through public education, surveillance and control.
Project Go Optional Project Go is a non-profit organization which helps low to moderate income community members with energy needs.
Placer County Transportation
Planning Agency (PCTPA) Required
PCTPA makes decisions about the regional transportation system in Placer County. The agency develops plans and strategies to make the best use of state and federal transportation funds.
Placer County Economic
Development Board (PCEDB) Optional
Members of the board area responsible for brining economic development information back to the governments and organizations they represent to ensure there is a united effort to attract new jobs to the County.
Local Agency Formation
Commission (LAFCO) Required
LAFCO is a state mandated independent regulator body whose role is to encourage orderly formation of local governmental agencies, preserve agricultural and open space resources and discourage urban sprawl. LAFCO oversees City boundaries.
Solid Waste Task Force Required Is needed to negotiate rates for the City's solid waste collection as well as oversee services to the community.
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2023 Committee Assignment List
External Board/Committee Colfax
Representative Meeting Information Meeting Location Reimbursement/ Stipend Placer County Economic Development Board (PCEDB)
Kim Douglass
Alt: David
Ackerman
11:30AM 3rd Thursday
4x/yr
Jan/Apr/July/Sept
Auburn City Hall, 1225
Lincoln Wy Room 10
and via ZOOM
No Stipend
Weimar, Applegate, Colfax/Municipal Advisory Council (WAC/MAC) David Ackerman Alt: Kim Douglass
6:00PM
3rd Wednesday every other
month -
Jan/Mar/May/July/Sept/Nov
Colfax City Hall No Stipend
Sacramento Area Council of Governments (SACOG)
Board of Directors
Trinity Burruss
Alt: David
Ackerman
9:30AM
3rd Thursday
1415 L. Street, Suite
300 Sacramento and via
ZOOM
$100 Stipend
Placer County Air Pollution Control District (PCAPCD)
Trinity Burruss
Alt: Marnie
Mendoza
2:30PM
2nd Thursday even
numbered months
BOS Chambers
175 Fulweiler Ave
Auburn
$100 Stipend
Placer Mosquito & Vector Control District (PMVCD)
Will Stockwin
Alt. David
Ackerman
4:30PM
3rd Monday / Every Month
2021 Opportunity Dr
Roseville $100 Stipend
Project Go (Colfax currently
rotated out)
5:30PM
3rd Thursday No Stipend
Placer County Transportation Planning Agency (PCTPA)
Trinity Burruss
Alt: David
Ackerman
9:00AM
4th Wednesday / Every
Month
801 Vernon St Roseville
BOS Chambers
175 Fulweiler Ave
Auburn and via ZOOM
$100 Stipend
Local Agency Formation Commission Trinity Burruss
4:00PM
2nd Wednesday / Every
Month
BOS Chambers
175 Fulweiler Ave
Auburn and via ZOOM
$100 Stipend
Solid Waste Task Force Wes Heathcock
Alt: Sean Lomen
9:30AM
1st Thursday 4x/yr
Feb/May/Aug/Nov
CRDC Cypress Room,
3091 County Center Dr,
Suite 170, Auburn
No Stipend
Placer Sierra Fire Safe Council
Sean Lomen
Alt: Marnie
Mendoza
6:00PM
4th Thursday / Every Month
City of Colfax
Council Chambers
33 S Main St
No Stipend
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2023 Committee Assignment List
External Board/Committee (Continued) Colfax
Representative Meeting Information Meeting Location Reimbursement/ Stipend Placer County Selection Committee Mayor Yearly No Stipend League of California Cities Sacramento Valley Division Liaison Marnie Mendoza Alt: Kim Douglass
1st Meeting March 31, 2023
in person in Colusa 4x/yr
Additional Meetings TBD
No Stipend
Bianchini Advisory Board Marnie Mendoza
Alt: Kim Douglass No Stipend
Sierra Vista Community Center Liaison David Ackerman
Alt: Sean Lomen
6:00pm
3rd Wednesday
Community Center
55 School Street, Colfax No Stipend
Colfax Schools Liaison Trinity Burruss
Alt: Sean Lomen No Stipend
Pioneer Community Energy Wes Heathcock
Alt: Kim Douglass
3:00PM
3rd Thursday
2510 Warren Drive,
Suite B Rocklin, CA
95677
No Stipend
Placer Regional Homelessness Action Plan Ad hoc Marnie Mendoza Kim Douglass
As Needed
Placer County Flood Control and Water Conservation District (Board of Directors) Sean Lomen 2nd Monday Monthly
4:00pm
Rocklin City Council
Chambers 390 Rocklin
Rd.
$100 Stipend
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To Be Determined
No Stipend
Internal Board/Committee Colfax
Representative Meeting Information Reimbursement/
Stipend Meeting Location
2023 Committee Assignment List
Colfax Bike Park
Colfax Youth Commission
5 Students (3-High
Schoolers, 2-SixthEighth Graders.) Once per month Colfax Elemetary School TBD
Council Policy Ad hoc David Ackerman
Trinity Burruss As Needed To Be Determined
No Stipend
Youth Commission Selection Committee
Marnie Mendoza
Kim Douglass
2-Elementary
School Teachers
2-High School
Teachers
Interview of Students in
March. Decisions by March
31st.
City Hall, Colfax
Elementary, Colfax High
School
No Stipend
ISO Ad hoc David Ackerman
Sean Lomen As Needed
Kim Douglass
David Ackerman As Needed To Be Determined No Stipend
Colfax Skate Park Trinity Burruss
Marnie Mendoza As Needed To Be Determined No Stipend
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