Agenda packet — Colfax City Council, January 24, 2024 (part 1 of 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 24, 2024
City Council Meeting
COUNCIL CHAMBERS, 33 SOUTH MAIN STREET, COLFAX, CA
Mayor Kim Douglass  Mayor Pro Tem Sean Lomen
Councilmembers Caroline McCully  Larry Hillberg  Trinity Burruss

REGULAR MEETING AGENDA
January 24, 2024
Regular Session 6:00 PM
Closed Session to Follow Regular Session
You may access the meeting and address the Council by the following means:

ZOOM at
https://us02web.zoom.us/j/81462294251
Dial in by calling one of the numbers listed below and enter the Webinar ID:
814 6229 4251
1 (669) 900-6833 1 (346) 248-7799 1 (312) 626-6799
1 (929) 205-6099 1 (253) 215-8782 1 (301) 715-8592
View Only on 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 [email protected], 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 (follows Regular Session)
2 OPEN SESSION
2A. Call Open Session to Order
2B. Pledge of Allegiance
2C. Roll Call
2D. 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. 2E. Statement of Conflict of Interest
3 CONSENT CALENDAR
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
Recommendation: By Motion, approve the Colfax City Council minutes of 12/13/2023. 1 Pages 5-8
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 24, 2024
3B. City Clerk Services Agreement between the City of Auburn and the City of Colfax Recommendation: Approve Resolution __-2024, ratifying the approval by the Interim City Manager to sign a Clerk Services Agreement with the City of Auburn for part-time City Clerk services on a temporary basis.
3C. Designation of Authorized Agents to Execute and Request Disaster/Grant Funding for the State of California Office of Emergency Services (CAL OES) Recommendation: Adopt Resolution ___-2024 approving the designation of the Mayor, City Manager, Finance Director, and Administrative Services Officer as authorized agents to execute and request disaster/grant funding for the State of California of Emergency Services (CAL OES). 3D. Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy Recommendation: Adopt Resolution ___-2024 approving the Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy.
3E. Cash Summary – November 2023
Recommendation: Accept and File.
3F. Cash Summary – December 2023
Recommendation: Accept and File.
*** End of Consent Calendar ***
4 AGENCY REPORTS
4A. Placer County Sheriff’s Office
4B. California Highway Patrol
4C. Placer County Fire Department/CALFIRE
4D. Non-Profits
5 PRESENTATION
5A. City of Colfax Audit Report as of Fiscal Year Ended June 30, 2023 Presentation By: Ingrid Sheipline, Managing Partner, Auditor Recommendation: Accept as received June 30, 2023 Audit Reports. 6 PUBLIC HEARING (None)
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 Pages 9-20
Pages 21-32
Pages 33-76
Pages 77-84
Pages 85-92
Pages 93-166
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 24, 2024
I, Amy Lind, Interim 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/
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 Informational Items – All Councilmembers 8B. City Operations Update – City Manager
9 COUNCIL BUSINESS
9A. Workshop on Downtown Connectivity Study/Main Street Improvement Plan Recommendation: Conduct a Workshop on the Draft Colfax Downtown Connectivity/Main Street Improvement Plan; direct staff as necessary.
9B. Council Committee Selections
Recommendation: By Motion, approve City Council Committee Assignments for 2024; and by Motion, approve the tentative FPPC Form 806 listing compensated Councilmember appointments to boards and commissions.
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.
10A. Public Comment on Good of the Order
Members of the public are permitted to address the Council on matters that relate to general welfare of the City that have not been previously discussed on this agenda. Oral comments may not exceed five (5) minutes. Written comments should not exceed 800 words.
11 CLOSED SESSION
11A. Public Comment (On Closed Session Item)
11B. By consensus of the Council without objection, adjourn to a Closed Session:
11C. Roll Call
11D. Conference with real property negotiators pursuant to Government Code Section 54956.8:

Property: SBE Parcel 19-872-31-13J-24. City Negotiator: City Manager Ron Walker Negotiating Parties: UPRR and City of Colfax. Under negotiation: price and terms. 11E. Report out of Closed Session
11 ADJOURNMENT
3 Pages 167-334
Pages 335-342
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 24, 2024
Amy Lind, Interim 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.

LEVINE ACT WARNING: In certain instances, parties, participants, and their agents before the City Council are subject to the campaign disclosure provisions detailed in Government Code Section 84308, California Code of Regulations Sections 18438.1 through 18438.8, and Fair Political Practices Commission Opinion 0-22-002. All parties, participants, and their agents are hereby directed to review these sections for compliance. If you believe that these provisions apply to you or a Council Member, please inform the City Clerk at the earliest possible opportunity. 4 Minutes 12/13/23
City Council Minutes /2023
Regular Meeting of Colfax City Council
Wednesday, December 13, 2023
City Hall Council Chambers, 33 S Main Street,
Colfax CA and attended via Teleconference through ZOOM
1 OPEN SESSION
1A. CallOpen Session to Order – Mayor Burruss called the Open Session to order at 6:05 p.m. 1B. Pledge of Allegiance
1C. Roll Call

Present: Councilmember Lomen, Mayor Pro Tem Douglass, Councilmember Hillberg, Councilmember McCully, Mayor Burruss
1D. Approval of Agenda Order
MOTION made by Councilmember Lomen, and seconded by Councilmember McCully, and approved unanimously.
1E. Statement of Conflict of Interest – No conflicts were identified by the Council or the public.

CONSENT CALENDAR
2A. Minutes
Recommendation: By Motion, approve the Colfax City Council minutes of 11/29/2023. 2B. Second Reading of Ordinance 556 Amending Colfax Municipal Code Title 17-Zoning Recommendation: Waive the second reading and adopt Ordinance 556 updating the Zoning Code and Zoning Map, to be effective 30 days after adoption. 2C. Administrative Services Officer – Amendments to Salary Schedule Recommendation: Approve Resolution 48-2023 amending the city salary schedule for the Administrative Services Officer position.
2D. Rail Tie Donation to the Nevada County Narrow Gauge Railroad & Transportation Museum Recommendation: Approve Resolution 49-2023 approving a donation of rail ties to the Nevada County Narrow Gauge Railroad & Transportation Museum.
2E. Supplemental Planning Services – Management Advisory Services (MAS) Recommendation: Authorize the Interim City Manager to increase the contract with Management Advisory Services (MAS) from $50,000 to $75,000 for additional supplemental planning services.

Adopt Resolution 50-2023.

Mayor Pro Tem Douglass requested to pull Item 2F from the Consent Calendar.

MOTION made by Councilmember Lomen, to approve the Consent Calendar with the exception of Item 2F, and seconded by Councilmember McCully, and approved unanimously. 2F. Lift Station #5 Pump Motor Rebuild – G3 Engineering, Inc.

Recommendation: Approve Resolution 51-2023 authorizing the Interim City Manager to enter into an agreement with G3 Engineering, Inc. to rebuild Lift Station #5 pump in the amount not to exceed $40,571.

Mayor Pro Tem Douglass highlighted the cost of repairs to the Waste Water Treatment Plant and emphasized the significance of the City's pursuit to seek grants for upgrades and repairs to the sewer 5 Minutes 12/13/23
/2023
system.

MOTION made by Councilmember Lomen, to approve Item 2F, and seconded by Councilmember McCully, and approved unanimously.
3 AGENCY REPORTS
3A. Placer County Sheriff’s Office – Sgt Kevin Griffiths, Colfax Station Commander spoke about the highlights of Winterfest. He said his department plans to pass out crime awareness and outreach packets to local businesses at the beginning of the next month. 3B. CHP – Officer Jason Lyman, Public Information Officer urged residents to stay prepared for the rain and snow conditions in the forecast. He said that his department would be hiring for overtime during storm events.
3C. Placer County Fire/CALFIRE – Placer County Fire/CALFIRE Assistant Chief Bob Counts explained that seasonal burn permit requirements had been lifted. He thanked Battalion Chief Loveless and Captain Kimball for their efforts with the City Christmas tree, hanging the banner, and with the Winterfest parade as well as all the assistance from Fire Marshall Woessnor with the event fireworks. He announced that the 5
th annual Santa Tour was upcoming. He reported that there was a wrong-way driver on I-80 that resulted in 3 patients. Hydrant testing is planned to begin on January 8 th. He also announced that the Emergency Command Center had turned on a free public-facing app called Pulsepoint which is a good resource for the community to follow Placer County Fire as well as other Fire Departments.
3D. Non-Profits –None.
4 PRESENTATION (None)
5 PUBLIC HEARING (None)
6 PUBLIC COMMENT
There was no public comment provided.
7 COUNCIL AND STAFF
7A. Committee Reports and Colfax Informational Items – All Councilmembers. Mayor Pro Tem Douglass explained that he ran into a potential bidder for the upcoming CDBG streets project who was studying the roadway.
7B. City Operations Update – City Manager
Interim City Manager, Mike Luken stated that this would be his last Council report as the new City Manager would be providing the next update. California State Fire Marshall Daniel Berlant gave Colfax kudos for pursuing an OES fire prevention defensible space grant. Interim City Manager Luken explained that the CDBG project was currently out to bid and that there was a non-mandatory project meeting with a few potential bidders. He said that Public Works Supervisor, Casey Merril put a lot of work into trash removal at Winterfest. Additionally, there would be minor changes to the PCSO contract. Upcoming items that would be coming forth are “No Parking” signs due to snow, and that there may be a contract adjustment with the metal buildings and corporation project. He announced a holiday closure that would extend from December 24-26 and that the City would be open on December 28, and 29th.
8 COUNCIL BUSINESS
8A. Consider canceling the December 27, 2023, Regular City Council Meeting Recommendation:

MOTION made by Councilmember Lomen to cancel the December 27th regular meeting and to authorize the Interim City Manager to cancel the January 10th regular meeting if necessary, and 6 Minutes 12/13/23
/2023
seconded by Mayor Pro Tem Douglass, and approved unanimously. 8B. Rotation of City Council Officers: Mayor and Mayor Pro Tem Recommendation: Rotation of City Council Officers: Mayor and Mayor Pro Tem.

Clerk Bailey presented a brief description. Public comment was received from residents Howard White and Tom Parnham. Council discussed the rotation. Councilmember Hillberg stated his thoughts to continue the Mayor Pro Tem to Mayor transition tradition.

MOTION made by Councilmember Hillberg for Mayor Kim Douglass to move into the rotation of Mayor, and seconded by Councilmember Lomen, and approved unanimously.

MOTION made by Councilmember McCully, for Councilmember Sean Lomen to move into the rotation of Mayor Pro Tem, and approved unanimously.

Mayor Burruss was presented with a gavel for her service to the City. The Council and staff expressed words of appreciation.
9 GOOD OF THE ORDER
Councilmember McCully thanked the Chamber of Commerce, and the Soroptimists Club, and said the parade and fireworks were awesome. Mayor Burruss echoed the same sentiments and stated she was excited to watch the upcoming Santa Tour. Interim City Manager Luken announced that the new Mayor would be filling in as City Manager from December 27- January 16th and stated that incoming City Manager, Ron Walker would be in the area.
9A. Public Comment on the Good of the Order – No comments were received. 1 CLOSED SESSION Cancelled without objection.
11 ADJOURNMENT
As there was no further business on the agenda, Mayor Burruss adjourned the meeting, by motion and without objection at 6:48 p.m. Respectfully submitted to City Council this 24th day of January, 2024.

Marguerite Bailey, City Clerk
7 (Page intentionally blank)
8 City of Colfax City Clerk Services Agreement between
Staff Report January 24, 2024 the City of Auburn and the City of Colfax Staff Report to City Council
FOR THE JANUARY 24, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Mike Luken, Interim City Manager
Subject: City Clerk Services Agreement between the City of Auburn and the City of Colfax
Budget Impact Overview:

N/A: Funded:  Un-funded: Amount: Fund(s): 100-120, 560, 561 Summary/Background
Chapter 2.12 of the Colfax Municipal Code establishes that the City Clerk is appointed by the City Council, upon recommendation of the City Manager. The position is open to all qualified adults without regard to whether they are residents of the city and mandates that he or she attends all meetings of the City Council and keeps a correct record of its proceedings.

On December 19, 2024, City Clerk, Marguerite Bailey announced that she had accepted another position outside of the City of Colfax and that her final day with the city would be January 11, 2024. The City has opened the recruitment process for a permanent City Clerk; however, this process may take several months.

Based on this timing and the statutory requirements set forth in California Government Code Sections 40801, 40806, 40811, and 40814, the appointment of an Interim City Clerk is crucial to ensure that the essential functions and duties of the clerk’s office are performed.

Previously, the Auburn City Clerk aided the City of Colfax in temporary transition periods due to retirement and unexpected absences. On January 13, 2021, the Colfax City Council established a job share agreement between the City of Auburn and Colfax through Colfax Resolution 06-2021. That agreement has since expired.

The Auburn City Clerk, Amy Lind holds the accreditation of Master Municipal Clerk (MMC) with the International Institute of Municipal Clerks (IIMC). She has been working in the City Clerk’s Office since December 2009 and is the Region 2 Representative for the City Clerks Association of California. The Auburn City Clerk is the most knowledgeable and capable to fulfill Interim City Clerk duties in Colfax.

The Interim City Manager for Colfax and the City Manager for Auburn signed the agreement attached as it falls under the monetary limits of the City Managers to execute.

Fiscal Impact
Colfax will pay Auburn for all hours worked at a rate of $58.92 per hour for regular time worked and $88.38 per hour for overtime worked, which will cover all City direct and overhead costs. The position is allocated across Funds 100-120, 560 and 561. In previous years, from 2019 to 2021, the total funding paid to the City of Auburn for these services totaled $8,569.

Attachments:

1. Resolution __ – 2024

2. Resolution 06-2021

3. Agreement
RECOMMENDED ACTION: Approve Resolution __-2024, ratifying the approval by the Interim City Manager to sign a Clerk Services Agreement with the City of Auburn for part-time City Clerk services on a temporary basis.

Item 3B9
_________________________________________________________________________________________ City of Colfax City Clerk Services Agreement between
Resolution _-2024 the City of Auburn and City of Colfax City of Colfax
City Council
Resolution № __-2024

APPROVING AND AUTHORIZING THE CITY MANAGER TO SIGN A CLERK SERVICES

AGREEMENT WITH THE CITY OF AUBURN FOR PART-TIME CITY CLERK SERVICES ON A

TEMPORARY BASIS
WHEREAS, the City Clerk fulfills the statutory requirements set forth in California Government Code Sections 40801, 40806, 40811, and 40814 as established by Chapter 2.12 of the Colfax Municipal Code; and,
WHEREAS, due to staffing changes, there is a need for part-time city clerk services in the City until a new City Clerk can be appointed by the Colfax City Council; and, WHEREAS, the Colfax City Council established a job share agreement with the City of Auburn and Colfax on January 13, 2021, for part-time city clerk services through Resolution 06-2021. That agreement has since expired; and,
WHEREAS, the City of Colfax wishes to execute another agreement with the City of Auburn for part-time city clerk services.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Colfax ratifies the decision of the Interim City Manager to execute an agreement with the City of Auburn for part-time city clerk services on a temporary basis.

THE FOREGOING RESOLUTION WAS DULY AND REGULARLY ADOPTED at the Regular Meeting of the City Council of the City of Colfax held on January 24, 2024, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________________
Kim Douglass, Mayor
ATTEST:
________________________________________
Amy Lind, Interim City Clerk
Item 3B10
City of Coif ax
City Council
Resolution NQ 06-2021

AUTHORIZING THE CITY MANAGER TO ENTER INTO AN EMPLOYEE SHARE AGREEMENT WITH

THE CITY OF AUBURN FOR CITY CLERK SERVICES
THE CITY COUNCIL OF THE CITY OF COLFAX DOES HEREBY RESOLVE:

That the City Council of the City of Colfax does hereby approve a Clerk Services Agreement between the City of Auburn and the City of Colfax and authorizes the City Manager to execute it on behalf of the City of Colfax. A copy of the agreement is attached hereto as Exhibit "A" and incorporated herein by this reference.

THE FOREGOING RESOLUTION WAS DULY AND REGULARLY ADOPTED at the Regular /
Meeting of the City Council of the City of Colfax held on the 13th of January, 2021 by the following vote of the Council:

A YES: Mendoza, Ackerman, Burruss, Fatula, Lomen
NOES:

ABSTAIN:

ABSENT:

ATTEST:
� Amyilt;literim �=d City Clerk
City of Colfax
Resolution 06-2021
Sean Lomen, Mayor =

EMPLOYEE SHARE AGMT-AUBURN
Item 3B11

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212855.1

CLERK SERVICES AGREEMENT

BY AND BETWEEN CITY OF AUBURN

AND CITY OF COLFAX
This CLERK SERVICES AGREEMENT (“Agreement”) is made and entered into effective January 16, 2024 (“Effective Date”) by and between the City of Auburn, a California municipal corporation (“Auburn”), and the City of Colfax, a California municipal corporation (“Colfax”) (collectively, “Parties”).

RECITALS
WHEREAS, Colfax desires to contract with Auburn for the performance of General Clerk Services, as defined below, by the Auburn City Clerk in accordance with this Agreement;
WHEREAS, Auburn is agreeable to rendering such General Clerk Services to Colfax in accordance with this Agreement;
WHEREAS, Article 1 of Chapter 5 of Division 7 of Title 1 of the California Government Code (commencing with Section 6500) authorizes Auburn and Colfax by agreement to jointly exercise any power common to them including Clerk powers (the “Joint Exercise of Powers Act”); and
WHEREAS, Chapter 21 of Part 2 of Division 3.6 of Title 1 of the California Government Code (commencing with Section 895) authorizes Auburn and Colfax by agreement to provide for contribution or indemnification of any liability arising out of the performance of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows:

1. GENERAL PROVISIONS

1.1. The Recitals above are true and correct and fully incorporated herein.

1.2. This Agreement is entered into pursuant to the provisions of the Joint Exercise of Powers Act.

1.3. The phrase “General Clerk Services“ as used in this Agreement shall include all services currently provided by the Auburn City Clerk in the performance of her regular duties in that position.

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212855.1

2. SCOPE OF SERVICES

2.1. Auburn agrees to provide General Clerk Services to Colfax in accordance with this Agreement.

2.2. The Auburn City Clerk will attend all regular meetings of the Colfax City Council. The Auburn City Clerk shall perform all other work provided for under this Agreement from Auburn City Hall, unless approved in advance by the Auburn City Manager.

2.3. For purposes of performing General Clerk Services under this Agreement, Auburn shall furnish and supply all necessary labor, supervision, equipment, and supplies necessary for such performance. However, Colfax may provide additional equipment and supplies for Auburn to utilize in performing the General Clerk Services under this Agreement.

3. DEPLOYMENT OF PERSONNEL

3.1. Auburn shall provide General Clerk Services through the Auburn City Clerk pursuant to the Work Schedule attached hereto as Exhibit A. Colfax may request additional hours outside of those provided for in Exhibit A, subject to prior written approval by the Auburn City Manager.

4. ADMINISTRATION OF PERSONNEL

4.1. Except as specifically provided in this Agreement, the standards of performance and discipline and other matters incident to the performance of such services, including control of personnel so performing, shall remain with Auburn.

4.2. All Auburn employees working in conjunction with Colfax and/or Colfax employees under this Agreement shall remain Auburn employees and compensated by Auburn and shall not have any claim or right to employment, civil service protection, salary, benefits, compensation, or claims of any kind or nature from Colfax as a result of this Agreement.

4.3. All Colfax employees working in conjunction with Auburn and/or Auburn employees under this Agreement shall remain Colfax employees and compensated by Colfax and shall not have any DocuSign Envelope ID: 19607323-89A6-4288-A402-AF521E368DAE Item 3B13

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212855.1
claim or right to employment, civil service protection, salary, benefits, compensation, or claims of any kind or nature from Auburn as a result of this Agreement.

5. INDEMNIFICATION

5.1. Colfax shall indemnify, defend, and hold harmless Auburn, and its officers, employees, agents, and volunteers, from and against any and all liabilities, losses, claims, damages, expenses, demands, and costs (including without limitation litigations costs and attorney, expert witness, and consultant fees) of every kind and nature arising out of a breach of Colfax’s obligations under this Agreement, except where caused by the sole negligence or willful misconduct of Auburn, or its officers, employees, agents, or volunteers, or as otherwise required by law.

5.2. Colfax shall indemnify, defend, and hold harmless Auburn, and its officers, employees, agents, and volunteers, from and against any and all liabilities, losses, claims, damages, expenses, demands, and costs (including without limitation litigation costs and attorney, expert witness, and consultant fees) of every kind and nature arising out of the performance of General Clerk Services for Colfax under this Agreement.

5.3. The Parties agree that the covenants contained in this Section 5 of this Agreement shall survive the expiration or termination of this Agreement.

6. TERM OF AGREEMENT

6.1. This Agreement shall terminate ninety (90) days after the Effective Date, unless terminated before that date pursuant to section 6.2 of this Agreement and may be extended by mutual written agreement by Colfax and Auburn for another ninety (90) days.

6.2. This Agreement may be terminated at any time, with or without cause, by either of the Parties upon ten (10) days written notice to the other party as provided in this Agreement.

6.3. In the event of termination of this Agreement by either of the Parties: (1) the Parties shall fully discharge all obligations owed to each other accruing prior to the effective date of such termination, DocuSign Envelope ID: 19607323-89A6-4288-A402-AF521E368DAE Item 3B14

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212855.1
and (2) Colfax shall pay Auburn for all General Clerk Services rendered prior to the effective date of such termination and properly billed as provided in this Agreement.

7. BILLING AND PAYMENT PROCEDURES

7.1. Colfax shall pay Auburn for the General Clerk Services rendered under this Agreement at a rate of $61.52 per hour for applicable regular time worked and $88.38 per hour for applicable overtime worked.

7.2. Auburn shall bill Colfax within ten (10) calendar days after the end of each calendar month by summarized invoice for the General Clerk Services provided in that month under this Agreement. The summarized invoice shall contain a statement of the number of hours worked. Colfax shall pay Auburn all amounts contained in such summarized invoice no later than thirty (30) days after receipt.

8. NOTICES

8.1. All notices and demands required or permitted to be given or made under this Agreement shall be in writing and either (1) hand delivered with signed receipt, or (2) mailed by first class registered or certified mail, postage prepaid and return receipt requested, addressed to the parties at the following addresses and to the attention of the person named. Addresses and persons named may be changed by either of the Parties by giving ten (10) days written notice to the other party.

If to City of Auburn:

City of Auburn
City Manager
1225 Lincoln Way
Auburn, CA 95603
If to City of Colfax:

City of Colfax
City Manager
33 South Main Street
Colfax, CA 95713

8.2. All other communications required under this Agreement may be either (1) hand delivered with signed receipt or (2) mailed by first class mail, including the summarized invoices pursuant to Section

7.2 of this Agreement.

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212855.1

9. WARRANTY OF AUTHORIZATION

9.1. Auburn represents and warrants that the person executing this Agreement is a duly authorized representative of the City of Auburn with actual authority to bind the City of Auburn to each and every term, condition, and obligation contained in this Agreement and that all requirements relating to such authority have been fulfilled.

9.2. Colfax represents and warrants that the person executing this Agreement is a duly authorized representative of the City of Colfax with actual authority to bind the City of Colfax to each and every term, condition, and obligation contained in this Agreement and that all requirements relating to such authority have been fulfilled.

10. MISCELLANEOUS PROVISIONS

10.1. This Agreement shall be governed and construed in accordance with the laws of the State of California. In the event of a dispute or claim arising out of this Agreement, venue shall be in the Superior Court of the State of California for the County of Placer.

10.2. This Agreement shall be construed as a whole and according to its fair meaning. This Agreement shall not be construed strictly for or against either of the Parties. If any provision of this Agreement is found unenforceable, void, or voidable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

10.3. This Agreement may be executed in counterparts such that the signatures appear on separate pages. A copy or facsimile of this Agreement, with all signatures appended together, shall be deemed a fully executed agreement. Signatures transmitted by facsimile or electronic means shall be deemed original signatures.

10.4. This Agreement represents the complete understanding of the Parties with respect to the matters set forth herein. This Agreement supersedes all previous agreements and understandings of the Parties, whether oral or written, with respect to the matters set forth herein. All such previous agreements and understandings shall have no force or effect.

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212855.1

10.5. Except as expressly provided herein, this Agreement may only be modified or amended by a written instrument executed by duly authorized representatives of the Parties.

10.6. The Parties agree to meet and confer periodically at mutually agreeable times to exchange relevant information and discuss performance under this Agreement.
* * * *
IN WITNESS WHEREOF, the City of Auburn by order of its City Council, and the City of Colfax by order of its City Council, have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date:

CITY OF AUBURN,
a Municipal Corporation
By: _____________________________
Sean Rabé
City Manager

CITY OF COLFAX,
a Municipal Corporation
By: _____________________________
Name: Michael W. Luken
Title: Interim City Manager
ATTEST:

By: _____________________________
Amy Lind
City Clerk
ATTEST:

By: ____________________________
Name: Amy Lind
Title: Acting City Clerk
APPROVED AS TO FORM:

By: _____________________________
Gary B. Bell
City Attorney
APPROVED AS TO FORM:

By: _____________________________
Name: Alfred “Mick” Cabral
Title: City Attorney
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212855.1
Exhibit A – Scope of Work/ Work Schedule
Prepare City Council Agendas
Attend Regular and Special City Council Meetings (including meeting setup and prep on day of – arrive at 5pm)
Record meeting actions and prepare necessary resolutions, ordinances and minutes
Coordinate Public Records Requests with Staff
Coordinate any elections related activity with the Placer County Elections Office
Work performed (outside of attending council meetings) is not to exceed 15 hours a week without prior approval by Auburn City Manager.

DocuSign Envelope ID: 19607323-89A6-4288-A402-AF521E368DAE Item 3B18

CITY OF COLFAX
Display Invoices by Vendor
03435
Vendor Name: CITY OF AUBURN
Vendor Number:

Invoice Number Inv. Date Ref No. Status Check No. Check Date Net Amt PO No. Invoice Description 757A 07/07/2020 43183 C 55998 07/15/2020 94.87 JULY 2020 CITY CLERK SVCS GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 23.72 23.72
560-000-5660 23.72 23.72
100-120-5660 JULY 2020 CITY CLERK SVCS 47.43 47.43
757 07/07/2020 43182 C 55998 07/15/2020 435.84 JUNE 2020 CITY CLERK SVCS GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 108.96 108.96
560-000-5660 108.96 108.96
100-120-5660 CITY CLERK SVCS 217.92 217.92
735 09/18/2019 42101 C 55060 09/23/2019 1,093.99 CITY CLERK SVCS AUG 2019 GL Number Distribution Description Gross Amount Amount To Pay 100-120-5660 546.99 546.99
560-000-5660 273.50 273.50
561-000-5660 273.50 273.50
734 08/01/2019 41929 C 54927 08/07/2019 1,247.64 TEMP CITY CLERK SERVICES GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 311.91 311.91
560-000-5660 311.91 311.91
100-120-5660 CLERK SERVICES 623.82 623.82
Total Invoices: 4 2,872.34
Historical Auburn Clerk
Services Costs
Item 3B
19 CITY OF COLFAX
Display Invoices by Vendor
03435
Vendor Name: CITY OF AUBURN
Vendor Number:

Invoice Number Inv. Date Ref No. Status Check No. Check Date Net Amt PO No. Invoice Description 769A 10/19/2021 44818 C 57519 11/08/2021 640.97 CITY CLERK SERVICES SEPT 2021
GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 160.24 160.24
560-000-5660 160.24 160.24
100-120-5660 320.49 320.49
769 10/19/2021 44817 C 57519 11/08/2021 246.08 CITY CLERK SERVICES AUG 2021
GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 61.52 61.52
560-000-5660 61.52 61.52
100-120-5660 123.04 123.04
765A 08/25/2021 44581 C 57314 08/31/2021 552.09 CITY CLERK SVCS JULY 2021 GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 138.02 138.02
560-000-5660 138.02 138.02
100-120-5660 276.05 276.05
765 08/23/2021 44580 C 57314 08/31/2021 981.13 CITY CLERK SVCS JUNE 2021 GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 245.28 245.28
560-000-5660 245.28 245.28
100-120-5660 CITY CLERK 490.57 490.57
763A 05/28/2021 44277 C 57044 06/07/2021 343.56 CITY CLERK SVCS MAY 2021 GL Number Distribution Description Gross Amount Amount To Pay 100-120-5660 171.78 171.78
561-000-5660 85.89 85.89
560-000-5660 85.89 85.89
763 05/28/2021 44276 C 57044 06/07/2021 123.04 CITY CLERK SVCS APR 2021 GL Number Distribution Description Gross Amount Amount To Pay 100-120-5660 61.52 61.52
561-000-5660 30.76 30.76
560-000-5660 30.76 30.76
761A 04/02/2021 44109 C 56895 04/13/2021 589.63 CITY CLERK SVCS MAR 2021 GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 147.40 147.40
560-000-5660 147.41 147.41
100-120-5660 CITY CLERK SVCS MAR 2021 294.82 294.82
761 04/02/2021 44108 C 56895 04/13/2021 959.76 CITY CLERK SVCS FEB 2021 GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 239.94 239.94
560-000-5660 239.94 239.94
100-120-5660 CITY CLERK SVCS FEB 2021 479.88 479.88
759 02/22/2021 43950 C 56721 02/26/2021 1,260.57 CITY CLERK SVCS GL Number Distribution Description Gross Amount Amount To Pay 561-000-5660 315.14 315.14
560-000-5660 315.14 315.14
100-120-5660 CITY CLERK SVCS 630.29 630.29
Total Invoices: 9 5,696.83
Historical Auburn Clerk
Services Costs
Item 3B
20 City of Colfax January 2107 Storms – California Disaster Assistance Act Staff Report January 24, 2024 (CDAA) Funding
Staff Report to City Council
FOR THE JANUARY 24, 2024, REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Laurie Van Groningen, Finance Director
Subject: Designation of Authorized Agents to Execute and Request Disaster/Grant Funding for the State of California Office of Emergency Services (CAL OES).

Budget Impact Overview:

N/A:  Funded: Un-funded: Amount: Fund(s):

Summary/Background
On August 10, 2022, the City of Colfax signed Resolution 29-2022 designating then City Manager, Wes Heathcock as the Authorized Agent with the State of California Office of Emergency Services (CAL OES) for and on behalf of the City of Colfax for the purpose of obtaining federal financial assistance for any existing or future grant program.

As the City is anticipating reimbursement soon related to the 2017 damage to the Waste Water Treatment Plant (WWTP), it is necessary to apply for new Authorized Agents and it is recommended by staff to designate the following positions as Authorized Agents; City of Colfax Mayor, City Manager, Finance Director, and Administrative Services Officer. The Authorized Agents will execute for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following:
• Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM), under-Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
• Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968.
• National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b)((2) (A) (ix) and 42 U.S. Code 7704 (b) (2) (B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141.
• California Early Earthquake Warning (CEEW) under CA Gov Code – Gov, Title 2,Div. 1, Chapter 7, Article 5, Sections 8587.8, 8587.11, 8587.12.

Attachments:

1. Resolution 29-2022
RECOMMENDED ACTION: Adopt Resolution ___-2024 approving the designation of the Mayor, City Manager, Finance Director, and Administrative Services Officer as authorized agents to execute and request disaster/grant funding for the State of California of Emergency Services (CAL OES).

Item 3C 21
City of Colfax January 2107 Storms – California Disaster Assistance Act Staff Report January 24, 2024 (CDAA) Funding

2. Resolution __ – (2024 OES=FPD-130)

3. List of Authorized Agents (OES-FPD-012)
Item 3C 22

DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES

BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)

THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , (Name of Applicant)
a public entity established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following:
- Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM), under - Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
- Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968.
- National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b) ((2) (A) (ix) and 42 U.S. Code 7704 (b) (2) (B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141 - California Early Earthquake Warning (CEEW) under CA Gov Code – Gov, Title 2, Div. 1, Chapter 7, Article 5, Sections 8587.8, 8587.11, 8587.12 That the , a public entity established under the
(Name of Applicant)
laws of the State of California, hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Cal OES ID No: _____________
Rev. 10-2022 Page 1 of 4 OES-FPD-130
Resolution __-2024
OR Mayor
Item 3C 23
Please check the appropriate box below
This is a universal resolution and is effective for all open and future disasters/grants declared up to three (3) years following the date of approval.

This is a disaster/grant specific resolution and is effective for only disaster/grant number(s):

Passed and approved this __day of , 20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)

CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the above is a true and
(Name of Applicant)
correct copy of a resolution passed and approved by the (Governing Body)
of the on the day of , 20 .
(Name of Applicant)
(Signature) (Title)

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 2 of 4 OES-FPD-130
Item 3C 24
Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted resolution is older than three (3) years from the last date of approval, is invalid, or has not been submitted.

When completing the Cal OES Form 130, Applicants should fill in the blanks on pages 1 and 2. The blanks are to be filled in as follows:

Resolution Section:

Governing Body: This is the group responsible for appointing and approving the Authorized Agents.

Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc.

Name of Applicant: The public entity established under the laws of the State of California.

Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.

Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the California Governor’s Office of Emergency Services regarding grants for which they have applied.

There are two ways of completing this section:

1. Titles Only: The titles of the Authorized Agents should be entered here, not their names. This allows the document to remain valid if an Authorized Agent leaves the position and is replaced by another individual. If “Titles Only” is the chosen method, this document must be accompanied by either a cover letter naming the Authorized Agents by name and title, or the Cal OES AA Names document. The supporting document can be completed by any authorized person within the Agency (e.g., administrative assistant, the Authorized Agent, secretary to the Director). It does not require the Governing Body’s signature.

2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document, or their title changes.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 OES-FPD-130 Page 3 of 4
Item 3C 25
Checking Universal or Disaster-Specific Box: A Universal resolution is effective for all past disasters and for those declared up to three (3) years following the date of approval. Upon expiration it is no longer effective for new disasters, but it remains in effect for disasters declared prior to expiration. It remains effective until the disaster goes through closeout unless it is superseded by a newer resolution.

Governing Body Representative: These are the names and titles of the approving Board Members.

Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents. A minimum of three (3) approving board members must be listed. If less than three are present, meeting minutes must be attached in order to verify a quorum was met.

Certification Section:

Name and Title: This is the individual in attendance who recorded the creation and approval of this resolution.

Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member. If a person holds two positions (such as City Manager and Secretary to the Board) and the City Manager is to be listed as an Authorized Agent, then that person could sign the document as Secretary to the Board (not City Manager) to eliminate “Self-Certification.”

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 4 of 4 OES-FPD-130
Item 3C 26

STATE OF CALIFORNIA
CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES LIST OF AUTHORIZED AGENTSOES-FPD-012 (Rev. 09-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
List of Authorized Agents
Entity Name:

Cal OES ID:
• Enter each Authorized Agent (AA) as listed on the Designation of Applicant's Agent Resolution (Cal OES 130) for Non-StateAgencies or as it appears on the Signature Authority (Cal OES 130SA) for California State Agencies.• Check box to receive electronic copies of Cal OES Notification of Obligation and/or Payment packages. (Minimum 1 AA.) • Email addresses must use an email that shares the official entity URL.

Authorized Agent Name Authorized Agent Title Email Address Email
Pkg?
•An Approved Contact may be designated by an AA to request or receive information on grant payment status. Addthem by inputting their information below. (Ex. Accounting/Admin offices) Must use an official email URL.

Approved Contact Name Approved Contact Title Email Address Email
Pkg?
Please use a second page if more space is needed.

Rev. 09-2022 OES-FPD-012
Item 3C
27 Item 3C
28 Item 3C
29 Item 3C
30 Item 3C
31 (Page intentionally blank)
Item 3C 32
City of Colfax Second Amended and Restated Joint Powers Agreement for Staff Report January 24, 2024 Pioneer Community Energy
Staff Report to City Council
FOR THE JANUARY 24, 2024, REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Mike Luken, Interim City Manager
Subject: Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy.

Budget Impact Overview:

N/A:  Funded: Un-funded: Amount: Fund(s):

Summary/Background
Pioneer Community Energy (“Pioneer”) is a Joint Powers Authority formed between the Counties of Placer and El Dorado, the Town of Loomis, and the Cities of Auburn, Colfax, Grass Valley, Lincoln, Nevada City, Placerville, and Rocklin. Pioneer is a Community Choice Aggregation Program (“CCA”) authorized under Assembly Bill 117 (2002). The CCA provides local control over the electricity rates to the residents and businesses within its member jurisdictions. Pioneer purchases the electricity supply and PG&E transmits and delivers the power through PG&E’s infrastructure (poles and wires). PG&E continues to own, operate, and maintain its distribution infrastructure. PG&E also continues to provide meter reading and billing services for Pioneer’s customers.

On December 19, 2023, the City of Colfax received notice from Pioneer of a proposed vote to adopt a Second Amended and Restated Joint Powers Agreement (JPA). The majority of the proposed amendments to the JPA would clarify language and correct clerical errors. The primary substantive change would be to amend Section 19, Amendments, to streamline the adoption of amendments to the JPA that do not directly impact the member agencies or change the nature of Pioneer or its powers.

Currently, notice of a proposed amendment must be sent to each member agency 30 days in advance of the Pioneer Governing Board’s consideration of the amendment. A two-thirds majority of the Board is required to approve an amendment. Further, the amendment must be approved by separate resolution of each of the member agencies, and finally, notice must be provided to members after the amendment is final.

The proposed change would specify that only amendments to Section 4, Powers, and the addition of new member agencies would require member agency approval by resolution. Other amendments could be approved by the Pioneer Governing Board with a two-thirds vote, with notice provided to the member agencies 30 days prior to and after the action. This is intended to allow amendments that are more internal in nature (affecting board membership, agency governance, etc.) to proceed with solely a two-thirds vote by the Pioneer Governing Board. That said, under the proposed process, the City of Colfax would still be given notice and an opportunity to object to any proposed amendment.

The Pioneer Board is scheduled to vote on the proposed amendments on January 18, 2024.

Fiscal Impact
There is no fiscal impact to the City of Colfax.

RECOMMENDED ACTION: Adopt Resolution ___-2024 approving the Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy.

Item 3D 33
City of Colfax Second Amended and Restated Joint Powers Agreement for Staff Report January 24, 2024 Pioneer Community Energy
Attachments:

1. Resolution __-2024

2. November 16, 2023 – Staff Report by Pioneer Community Energy on Proceeding with Adopting of Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy Item 3D 34
City of Colfax
City Council
Resolution № __-2024

APPROVING THE SECOND AMENDED AND RESTATED JOINT EXERCISE OF POWERS

AGREEMENT FOR PIONEER COMMUNITY ENERGY
WHEREAS, the Sierra Valley Energy Authority was established on September 9, 2015, between the County of Placer and the City of Colfax; and,
WHEREAS, the Sierra Valley Energy Authority was originally created for the purpose of providing a financing conduit and program expansion platform for the mPOWER Program; and, WHEREAS, counties and cities have the power under California law to aggregate electric load, to purchase and supply electricity for themselves and customers within their jurisdictions, by providing a Community Choice Aggregation (“CCA”) Program, pursuant to California Public Utilities Code Sections 331.1 and 366.2; and,
WHEREAS, the Amended and Restated JPA allowed for the establishment of a Community Choice Aggregation Program within the jurisdictions of the Voting Members and authorized the Cities of Auburn, Lincoln, Rocklin, and the Town of Loomis to become Voting Members; and, WHEREAS, the Amended and Restated JPA became effective on February 22, 2017; and, WHEREAS, on July 17, 2017, the Governing Board of the Sierra Valley Energy Authority took action to rename and brand Sierra Valley Energy Authority as Pioneer Community Energy (“Pioneer”); WHEREAS, on December 17, 2020, the Governing Board of Pioneer Community Energy approved Amendment No. 1 to the Amended and Restated JPA, which authorized the County of El Dorado and the City of Placerville to become Voting Members; and,
WHEREAS, the Governing Board of Pioneer Community Energy has previously approved four amendments to the Amended and Restated JPA; and,
WHEREAS, on November 17, 2022, the Governing Board of Pioneer Community Energy approved Amendment No. 5 to the Amended and Restated JPA, which authorized the Cities of Grass Valley and Nevada City to become Voting Members; and,
WHEREAS, pursuant to Section 19 of the Amended and Restated JPA, the governing body of each Voting Member must individually approve amendments to the Amended and Restated JPA and thereafter the Governing Board of Pioneer ratifies the amendment; and, Item 3D 35
WHEREAS, individual approval of amendments by each Voting Member results in logistical complications and delays, which can be remedied by eliminating this requirement for certain amendments and allowing the Governing Board of Pioneer to approve such amendments to the JPA with a two thirds vote after providing notice to Voting Members; and,
WHEREAS, to these ends, the City Council of Colfax desires to approve the execution of the Second Amended and Restated Joint Exercise of Powers Agreement for Pioneer Community Energy to incorporate the changes made by the previous amendments to the Amended and Restated JPA, clarify language, correct clerical errors, and streamline adoption of amendments to the JPA that do not directly impact the member agencies or change the nature of Pioneer or its powers.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Colfax approves and authorizes as follows:

Section 1. The recitals above are true and correct and are incorporated by this reference and constitute findings in this matter.

Section 2. The City Council of the City of Colfax hereby approves the Second Amended and Restated Joint Exercise of Powers Agreement for Pioneer Community Energy, in the form attached hereto as Exhibit “A,” and authorizes and directs the Mayor to execute the Second Amended and Restated Joint Exercise of Powers Agreement for Pioneer Community Energy in the name and on behalf of the City of Colfax.

Section 3. This Resolution shall take effect immediately upon its adoption.

Exhibit A: Second Amended and Restated Joint Exercise of Powers Agreement THE FOREGOING RESOLUTION WAS DULY AND REGULARLY ADOPTED at the Regular Meeting of the City Council of the City of Colfax held on January 24, 2024, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________________
Kim Douglass, Mayor
ATTEST:
________________________________________
Amy Lind, Interim City Clerk
Item 3D 36
Staff Report – Item 4
To: The Governing Board
From: Inder Khalsa, General Counsel
Donald Eckert, Executive Director
Item 4: Authorize staff to notice member agencies and proceed with adopting the Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy with any changes requested by the Governing Board.

Date: 11/16/2023

RECOMMENDATION
Authorize staff to notice member agencies and proceed with adopting the Second Amended and Restated Joint Powers Agreement for Pioneer Community Energy with any changes requested by the Governing Board.

BACKGROUND
In 2015, the Placer County and the City of Colfax entered into a Joint Powers Agreement (JPA) for the purpose of establishing the Sierra Valley Energy Authority to operate a PACE program. In 2017, the JPA was amended and restated to rename the agency Pioneer Community Energy, create a community choice aggregation program, and add the cities of Auburn, Lincoln, Rocklin, and the Town of Loomis as member agencies. Since then, that First Amended and Restated JPA has been amended five times to make minor text changes and add new members.

At the October 19, 2023, meeting, the General Counsel provided a presentation to the Governing Board regarding the desirability of adopting a Second Amended and Restated JPA. The Governing Board directed General Counsel to prepare a draft Second Amended and Restated JPA for Board consideration and discussion. The Board provided direction that amendments to the JPA for The General Counsel is now seeking input and direction from the Board with respect to the draft Second Amended and Restated JPA and initiation of the formal amendment process.

ANALYSIS & DISCUSSION
As shown in the attached redline showing changes proposed to the First Amended and Restated Agreement, the proposed Second Amended and Restated JPA would make the following revisions and changes to the JPA:
• Name. Change name of agency to Pioneer Community Energy throughout (this was legally effectuated by a resolution adopted in 2017 but references to Sierra Valley Energy Authority remained in the First Amended and Restated); likewise changed references to “the Authority” to “Pioneer” for ease of reading.
• Recitals. Update recitals to reflect history of Pioneer and subsequent amendments. • Effective date. Revise effective date to reflect Second Amended and Restated. • Exhibit A for List of Members. Remove references to specific member agencies in Sections 2 and 5 and of the JPA, moving the list of the members to a new Exhibit A for easier reference and updating.
• Special Voting Requirements. Revise Section 8 to separate the discussion of involuntary termination of a member from the discussion of general amendments to the JPA. We moved but did not change the requirement that amendments of the JPA require a 2/3 vote of the Governing Board.

Plf)NEER

COMMUNITY ENERGY
Item 3D 37
• Amendments. Revise Section 19, Amendments, to specify that only amendments to Section 4, Powers, and the addition of new member agencies requires approval by separate resolutions of each of the member agencies and to make other changes to streamline the amendment process. • Satisfied/completed obligations. Revise sections that have now been completed to indicate they are satisfied (for example, Section 9E, which describes the provision of start-up funding by Placer County).
• Clean-up. Fix incorrect cross references, revise confusing references and typos.

The bulk of the changes proposed are clarifying or clerical in nature. Adopting a clearer Second Amended and Restated JPA will provide the public, staff, and legal counsel with a clearer reference document for questions of governance, eliminating the need to check amendments (at least in the near term). It also provides an opportunity to correct or eliminate outdated references, resulting in a document that is easier to understand.

The primary substantive proposed change to the JPA is to Section 19, Amendment. Currently, notice of proposed amendments must be sent to each member agency 30 days in advance of the Board considering the amendment. A two-thirds majority of the Board is required to approve an amendment. Further, the amendment must be approved by separate resolution of each of the member agencies, and finally, notice must be provided to members after the amendment is final.

Staff recommends that the amendment process be simplified for amendments that do not directly impact the member agencies or change the nature of Pioneer or its powers. Based on direction received at the October 19 Governing Board meeting, the attached draft would provide a different amendment process for amendments to Section 4 (Powers) and amendments to add a new party to the JPA. For those amendments, separate resolutions of each member agency would be required.

All other amendments could be approved by the Board with a two-thirds vote, with notice provided to the member agencies 30 days prior and after the action. Individual member agency approval by resolution would not be required. This is intended to allow amendments that are more internal in nature (affecting board membership, basic governance, etc.) to proceed with solely a Board vote. That said, member agencies would be given notice and the opportunity to object to any proposed amendment.

STRATEGIC PLAN
The recommendation supports the Operational Excellence priority.

FISCAL IMPACT
The proposed Second Amended and Restated JPA will not have any direct fiscal impact beyond the time of staff and General Counsel to process the amendment.

ATTACHMENTS

1. Draft Second Amended and Restated JPA

2. Redline showing changes made between the First and Second Amended and Restated JPA (as amended by Amendments 1-5).

Item 3D 38

SECOND AMENDED AND RESTATED JOINT EXERCISE OF POWERS

AGREEMENT FOR PIONEER COMMUNITY ENERGY
This Second Amended and Restated Joint Exercise of Powers Agreement (hereafter “Agreement”) amends and restates the Amended and Restated Joint Exercise of Powers Agreement (“Amended and Restated JPA”), with the effective date of February 22, 2017, for PIONEER COMMUNITY ENERGY, (hereafter “Pioneer”), as amended and executed pursuant to Amendments No. 1 through 5, by and among the Voting Members (including the New Voting Members) and the Associate Members listed in Exhibit A to this Agreement, all public entities of the State of California who become signatories to this Agreement, and relates to the joint exercise of powers among all of the signatories hereto either as Voting Members or Associate Members (hereafter collectively referred to as the “Members”).

RECITALS:

G. Whereas, on September 9, 2015 the County of Placer and the City of Colfax entered into the original Joint Exercise of Powers Agreement for the purpose of establishing the Sierra Valley Energy Authority as a joint powers authority under the Joint Exercise of Powers Act, Government Code Section 6500, et seq.; and H. Whereas, the Amended and Restated JPA became effective on February 22, 2017 and authorized the Cities of Auburn, Lincoln, Rocklin, and the Town of Loomis to become Voting Members of the Joint Exercise of Powers Agreement and established a Community Aggregation Program within the jurisdictions of the Voting Members; and
I. Whereas, Resolution No. 2017-3 of the Sierra Valley Energy Authority approved a name change from Sierra Valley Energy Authority to Pioneer Community Energy, as it is known today; and
J. Whereas, Amendment No. 1 to the Amended and Restated JPA, which was approved by the Governing Board on December 27, 2020 and became effective March 9, 2021, authorized the County of El Dorado and the City of Placerville to become Voting Members; and
K. Whereas, Amendments No. 2 through 4 to the Amended and Restated JPA made certain changes to the Amended and Restated JPA; and
L. Whereas, Amendment No. 5 to the Amended and Restated JPA, which was approved by the Governing Board on October 25, 2022 and became effective February 27, 2023, authorized the City of Nevada City and the City of Grass Valley as Voting Members; and
M. Whereas, the Voting Members wish to amend and restate the Amended and Restated JPA to clean up and streamline the Agreement.

NOW THEREFORE, in consideration of the mutual promises, covenants and conditions herein, the Members hereto agree to establish a joint powers authority as follows:

Item 3D 40
Section 1. Authority for this Joint Exercise of Powers Agreement This Agreement is made pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (commencing with Section 6500) relating to the joint exercise of power common to the counties and public agencies and other powers specified therein (hereinafter the “Act”). Under Sections 6505 and 6507 of the Act, Pioneer is a public agency separate from its Members. As provided by Section 6508.1 of the Act, and Section 12 hereof the debts, liabilities or obligations of Pioneer shall not be the debts, liabilities or obligations of the individual Members, unless the governing body of a Member agrees in writing to assume any of those debts, liabilities or obligations.

The Members are each empowered by the laws of the State of California to exercise, in their respective jurisdictions, the powers set forth herein, including but not limited to the power to aggregate electric load, to purchase and supply electricity for themselves and customers within their jurisdictions, and the power to enter into voluntary contractual assessments with properties owners for authorized improvements within their jurisdictions.

Section 2. Purpose of Agreement
The purpose of this Agreement is to establish an independent public agency in order to exercise powers common to the Members and other powers granted to Pioneer under the Act, to study, promote, develop, conduct, operate, and manage energy, energy efficiency and conservation, and other energy-related programs, to exercise all other powers necessary and incidental to accomplishing these purposes, and to provide a Community Choice Aggregation (hereinafter “CCA”) Program, pursuant to California Public Utilities Code Sections 331.1 and 366.2, and as further described in Section 10.

Without limiting the generality of the foregoing, the Members also intend for this Agreement to be used as a mechanism by which Voting Members and non-voting Associate Members may authorize Pioneer to provide Property Assessed Clean Energy (“PACE”) Programs pursuant to Chapter 29 of the Improvement Bond Act of 1911, Division 7 of the California Streets and Highways Code (“Chapter 29”). Pioneer may provide PACE Programs pursuant to Chapter 29 within the boundaries of each Voting Member as set forth in Section 10(C) herein, and within the boundaries of each non-voting Associate Member as set forth in Sections 16 herein. The Members intend that other agreements with Associate Members shall define the terms and conditions associated with the implementation of the CCA Program, the PACE Program, and any other energy programs approved by Pioneer within the territorial jurisdiction of such Associate Members.

Section 3. Effective Date and Term
This Agreement shall be effective as a second amendment and restatement of the Original Agreement, and Pioneer shall continue to exist as a separate public agency under the terms of this Agreement after approval and signature of the Second Amended and Restated Agreement by the New Members and after the California Public Utilities Commission certifies the Implementation Plan filed by Pioneer to include the New Members. This Agreement shall be in Item 3D 41
full force and effect until terminated in the manner herein provided, subject to the rights of the Members to withdraw from Pioneer.

Section 4. Powers
Pioneer shall have all powers common to the Members, and such additional powers accorded to it by law, including the power to develop and implement comprehensive energy and resource development and conservation programs, as described herein. Unless state or federal law provides otherwise, any facilities, buildings or structures located, constructed, or caused to be constructed by Pioneer within the territory of Pioneer shall comply with the General Plan, zoning and building laws of the local jurisdiction within which the facilities, buildings or structures are constructed and comply with the California Environmental Quality Act (CEQA). As required by Government Code Section 6509, the power of Pioneer is subject to the restrictions upon the manner of exercising power possessed by the City of Colfax.

Pioneer is authorized, in its own name, to exercise all powers and do all acts necessary and proper to carry out the provisions of this Agreement and fulfill its purposes, including, but not limited to, each of the following powers, subject to the voting requirements set forth in Section 5C and Section 8:

A. to make and enter into contracts;
B. to employ agents and employees, including but not limited to an Executive Director;
C. to acquire, contract, manage, maintain, and operate ally buildings, infrastructure, works, or improvements;
D. to acquire property by eminent domain, or otherwise, except as limited under Section 6508 of the Act, and to hold or dispose of any property; E. to lease any property;
F. to sue and be sued in its own name;
G. to incur debts, liabilities, obligations and to issue bonds, and to make and enter into agreements and other documents of any nature whatsoever as may be necessary or convenient in the exercise of the powers provided under the MarksRoos Local Bond Pooling Act of 1985, as amended, and other provisions of California law that authorize public agencies to issue bonds and incur indebtedness, including but not limited to loans from private lending sources pursuant to its temporary borrowing powers such as Government Code Sections 53850 et. seq.;
H. to form subsidiary or independent corporations or entities, if necessary to carry out energy supply and energy conservation programs and to take advantage of legislative or regulatory changes;
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I. to deposit its money pursuant to Section 6505.5 of the Act and to invest its money which is not required for the immediate use of Pioneer, as Pioneer determines is advisable in the same manner and upon the same conditions as local agencies, pursuant to Section 53635 of the California Government Code; J. to apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state, or local public agency;
K. to submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;
L. to adopt rules, regulations, policies, bylaws and procedures governing the operation of Pioneer (“Operating Rules and Regulations”); M. to establish and operate a CCA program, and make and enter into service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCA Program, including the acquisition of electric power supply and the provision of retail and regulatory support services; N. to establish and operate one or more PACE programs pursuant to Chapter 29, and to enter into one or more agreements, including without limitation, participation agreements, implementation agreements and joint powers agreements and amendments thereto to fulfill such programs both within and outside the jurisdictional boundaries of Pioneer;
O. to establish a non-voting “Associate Member” status that provides membership in Pioneer to jurisdictions that are outside jurisdictional boundaries of Pioneer’s Voting Members, but within whose boundaries a PACE, CCA, or other energy program is established and implemented by Pioneer on behalf of the Associate Member. Said jurisdictions shall adopt one or more agreements (a “PACE Agreement”, “CCA Agreement”, or other energy program agreement, as applicable) on terms and conditions established by Pioneer. The rights of Associate Members shall be limited solely to those terms and conditions expressly set forth in the PACE Agreement, CCA Agreement or other energy program agreement for the purposes of implementing the PACE Program, CCA Program or other energy program, respectively, within the jurisdictional boundaries of the Associate Member. Except as expressly provided for by the PACE Agreement, CCA Agreement or other energy program agreement, Associate Members shall not have any rights otherwise granted to Pioneer Members by this Agreement, including but not limited to the right to vote, the right to amend this Agreement and the right to sit on committees or boards established under this Agreement; P. to execute agreements for the purpose of authorizing Pioneer to implement, manage and administer area-wide and regional programs in the interest of providing energy supply, development of energy generation, energy efficiency, resource conservation, local public welfare and other economically related energy Item 3D 43
programs. The costs incurred by Pioneer in implementing a program, including indirect costs, shall be costs of Pioneer and shall not be assessed to the Members, unless approved by the Governing Body of the Member.

Section 5. Governance and Internal Organization
A. Governing Board. The governing body of Pioneer shall consist of two (2) members of the Placer County Board of Supervisors, and one (1) member each for all other Voting Members, appointed respectively by each Voting Member that is or becomes a signatory to this Agreement (“Board Member”). The total number of Board Members shall equal the total number of Voting Members listed in Exhibit A plus one (1).

The Boards of Supervisors, City Councils and Town Councils of the Voting Members listed in Exhibit A shall respectively appoint such member(s) set out above and not less than one alternate member per Board Member. The term of office of each Board Member and respective alternate may be terminated at any time by the appointing Board of Supervisors, City Council or Town Council. The designated alternate shall have authority to attend, participate, and vote at any meeting of the Board whenever the regular member, for whom they are designated to act as an alternate, is absent from the meeting.

B. Quorum. The majority of the members of the Board shall constitute a quorum.

No action may be taken by the Board unless a quorum is present, except that less than a quorum may adjourn a meeting from time to time.

C. Powers and Function of Board. The Board will exercise governance, policy guidance and oversight over the business and activities of Pioneer, consistent with this Agreement and applicable law. Unless otherwise specified in Section 8, action by Pioneer Board will be taken by majority vote of the Board Members present.

D. Chairperson. The Chairperson and Vice Chairperson of the Board shall be selected by the Board from its members. The term of office of the Chairperson and Vice Chairperson shall each be one calendar year.

E. Secretary. The Board shall appoint a Secretary to the Board who need not be a member of the Board, who shall be responsible for keeping the minutes of all meetings of the Board and all other official records of Pioneer.

F. Meetings. All meetings of the Board shall be held subject to the provisions of the Ralph M. Brown Act, Division 2, Chapter 9 of the California Government Code (hereafter, the “Brown Act”). The Board shall hold at least four regular meetings per year, but the Board may provide for the holding of regular meetings at more frequent intervals. The date, hour and place of each regular meeting shall be fixed by resolution or ordinance of the Board. Regular meetings may be adjourned to another meeting time. Special meetings of the Board may be called in accordance Item 3D 44
with the provisions of California Government Code Section 54956. Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law.

G. Bylaws. The Board shall adopt bylaws for the conduct of business that shall not be inconsistent with the provisions of this Agreement, and the laws of the State of California.

H. Board Member Compensation. Board Members shall serve without compensation from Pioneer. However, Board Members may be compensated by their respective appointing authorities. The Board, however, may adopt by resolution a policy relating to the reimbursement by Pioneer of expenses incurred by Board Members.

Section 6. Executive Director and Other Staff
A. Executive Director. The Board shall appoint an Executive Director for Pioneer, who shall be responsible for the day-to-clay operation and management of Pioneer. The Executive Director may exercise all powers of Pioneer, except the powers specifically set forth in Section 4, or those powers that by law must be exercised by the Board. The Executive Director shall hire and supervise any Pioneer employees or consultants.

C. Services Providers. The Executive Director may appoint one or more services providers to serve as Pioneer’s agent(s) for planning, implementing, operating and administering the PACE Program, the CCA Program, and any other program approved by the Board, in accordance with the provisions of a written agreement between Pioneer and the appointed administrative services provider or providers (a “Services Agreement”). The appointed services provider may be one of the Voting Members. A Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all tasks necessary for planning, implementing, operating and administering the PACE Program, the CCA Program and other approved programs. The Services Agreement shall set forth the term of the Agreement and the circumstances under which the Services Agreement may be terminated by Pioneer. This section shall not in any way be construed to limit the discretion of Pioneer to hire its own employees to administer the PACE Program, the CCA Program or any other program.

Item 3D 45
D. Independent Monitor. The Board may appoint or contract for the services of an independent monitor to review programs operated by Pioneer and to report to the Board.

E. Advisory Commissions, Boards or Committees. The Board may establish any advisory commissions, boards, and committees as the Board deems appropriate to assist the Board in carrying out its functions and implementing the CCA Program, other energy programs and the provisions of this Agreement which shall comply with the requirements of the Brown Act. The Board may establish rules, regulations, policies, bylaws or procedures to govern any such commissions, boards, or committees.

Section 7. Treasurer and Auditor-Controller
The Governing Board shall appoint a Treasurer for Pioneer. The Treasurer shall be the depository of Pioneer and shall have all of the duties and responsibilities specified in Section 6505.5 of the Act. The duties and obligations of the Treasurer are further specified in Section 9.

The Governing Body shall appoint an Auditor-Controller for Pioneer in compliance with the Act.

The Auditor-Controller of Pioneer shall make or contract with a certified public accountant to cause an annual audit in compliance with Section 6506 of the Act. Pioneer of the Board to appoint a Treasurer and Auditor/Controller shall include Pioneer to combine both offices to be held by one officer or employee pursuant to section 6505.6 of the Act.

Section 8. Special Voting Requirements and Voting Shares A. Involuntary Termination. Action of the Board on matters set forth in Section 15A (involuntary termination of a Member) shall require the affirmative vote of at least two-thirds of the Board Members; provided, however, the Member subject to involuntary termination may not vote, and the number of Board Members constituting two-thirds of all Board Members shall be recalculated as if the Voting Member subject to possible termination were not a Voting Member.

B. Amendment. Action of the Board on matters set forth in Section 19 (amendment of this Agreement) shall require an affirmative vote of at least two-thirds of the Board members.

C. Eminent Domain. A decision to exercise the power of eminent domain on behalf of Pioneer to acquire any property interest other than an easement, right-of-way, or temporary construction easement shall require a vote of at least two-thirds of all Board Members.

D. Contributions by Members. The imposition on any Member of any obligation to make contributions or pledge assets as a condition of continued participation in the PACE Program, the CCA Program, or other energy programs shall require a vote of at least two-thirds of all Board Members and the approval of the governing boards of the Members and Associate Members who are being asked to make such contribution or pledge.

Item 3D 46
Section 9. Financial Provisions
A. Fiscal Year. For the purposes of this Agreement, Pioneer shall have such fiscal year from July 1 to and including the following June 30.

B. Depository. All funds of Pioneer shall be held in separate accounts in the name of Pioneer and not commingled with funds of any Member or any other person or entity. All funds of Pioneer shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records of Pioneer shall be open to inspection by the Members at all reasonable times, The Board shall contract with a certified public accountant to make an annual audit of the accounts and records of Pioneer, which shall be conducted in accordance with the requirements of Section 6505 of the Act.

C. Expenditures. All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its Operating Rules and Regulations. The Treasurer shall draw checks or warrants or make payments by other means for claims or disbursements not within an applicable budget only upon the prior approval of the Board.

D. Budget. The initial budget shall be approved by the Board. The Board may revise the budget from time to time through an Pioneer Document as may be reasonably necessary to address contingencies and unexpected expenses. All subsequent budgets of Pioneer shall be approved by the Board in accordance with the Operating Rules and Regulations.

E. Funding of Initial Costs. The County of Placer funded certain activities necessary to implement the CCA Program. These costs were repaid in full when the CCAP Program became operational.

F. CCA Program Costs. The Members desire that all costs incurred by Pioneer that are directly or indirectly attributable to the provision of electric, conservation, efficiency, incentives, financing, or other services provided under the CCA Program, including but limited to the establishment and maintenance of various reserves and performance funds and administrative, accounting, legal, consulting, and other similar costs, shall be recovered through charges to CCA customers receiving such electric services, or from revenues from grants or other third-party sources.

Section 10. Implementation Action and Pioneer Documents A. Each Member shall adopt an ordinance or resolution in accordance with Public Utilities Code Section 366.2(c)(12) for the purpose of specifying that the Member intends to implement a CCA Program by and through its participation in Pioneer.

B. Each Member that wishes to participate in the CCA Program shall adopt a resolution expressing its desire to become a Member to this Agreement, and its Item 3D 47
intention to have the territory of the Member’s jurisdiction included in the service territory of the CCA.

C. Each New Voting Member that wishes to participate in the PACE Program shall adopt a resolution authorizing it to become a Voting Member under this Agreement. Execution by such New Voting Member of this Agreement shall constitute consent to Pioneer undertaking contractual assessment proceedings under Chapter 29 for all of the properties in such New Voting Member’s incorporated area and to the contractual assessment financing of certain improvements (as enumerated from time to time in Chapter 29, “Improvements”) by Pioneer, upon the request by and voluntary agreement of owners of such properties, in compliance with the laws, rules and regulations applicable to Pioneer’s PACE Program, and to the assumption of jurisdiction thereover by Pioneer for the purposes thereof. Execution by such New Voting Member of this Agreement shall also serve to authorize Pioneer to take each step required for it to provide contractual assessment financing for the Improvements, including the levying, collecting and enforcement of contractual assessments to finance the Improvements and the issuance and enforcement of bonds and other financing instruments to represent and be secured by such contractual assessments. The New Voting Members shall not be required to adopt a PACE Agreement and shall not be subject to the rights and obligations set forth therein, but shall instead, upon becoming Voting Members hereunder, be subject to the rights and obligations expressly set forth herein.

Pioneer may additionally provide PACE Programs pursuant to Chapter 29 within the boundaries of non-voting Associate Members, as described further in Section 16 herein.

D. Implementation Plan and Statement of Intent. Pioneer shall cause to be prepared an Implementation Plan and Statement of Intent meeting the requirements of California Public Utilities Code Section 366.2 and any applicable California Public Utilities Commission regulations. The Implementation Plan and Statement of Intent shall specify the service territory of the CCA to be within the boundaries of the Member jurisdictions that have taken the actions specified in A and B above. The Implementation Plan and Statement of Intent shall not be filed with the California Public Utilities Commission until it is approved by the Board in the manner provided by Section 5.

If a City or County adopts an ordinance and resolution pursuant to A and B above, expressing its desire to become a Member to this Agreement subsequent to the filing of the then most recently filed Implementation Plan and Statement of Intent, the Board shall direct the preparation and filing of a new or amended Implementation Plan and Statement of Intent to include the territory of the County or City as soon as reasonably practicable. The Board may require the County or City to pay the cost of preparation and submission of the Implementation Plan and Statement of Intent. Upon California Public Utilities Commission certification of the new or amended Implementation Plan and Statement of Intent, the Board shall Item 3D 48
take an action to approve the membership of the County or City. The County or City shall then be entitled to all rights under this Agreement, including a seat on the Board and voting rights pursuant to Section 5.A and Section 8.

E. Termination of CCA and PACE Program. Nothing contained in this Article or this Agreement shall be construed to limit the discretion of Pioneer to terminate the implementation or operation of the CCA or the PACE Program at any time in accordance with any applicable requirements of state law.

F. Pioneer Documents. The Members acknowledge and agree that the affairs of Pioneer will be implemented through various documents duly adopted by the Board through Board resolution. The Members agree to abide by and comply with the terms and conditions of all such documents that may be adopted by the Board, subject to the Members’ right to withdraw from Pioneer as described in Section 14.

Section 11. Records and Reports
The Board shall establish reporting requirements and direct staff to maintain such reports, including, but not limited to, funds and accounts as may be required by good accounting practice or by law. All books and records of Pioneer shall be open to inspection at all reasonable times by any Member to this Agreement or its representatives. Annual audits of Pioneer’s accounts and records shall be made by an independent CPA firm, and reports shall be filed in the manner provided in Section 6505 of the California Government Code.

Section 12. Debts, Liabilities and Obligations
Pioneer is a public agency separate from the Members. Pursuant to Sections 6508.1 of the Act, the debts, liabilities or obligations of Pioneer shall not be debts, liabilities or obligations of the individual Members unless the governing board of a Member agrees in writing to assume any of the debts, liabilities or obligations of Pioneer. A Member who has not agreed to assume a Pioneer debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Members agree to assume the debt, liability or obligation of Pioneer. Should any debt, liability or obligation of Pioneer not be waived or allowed payable through assets of Pioneer, none of the County or City members shall be liable, except as provided by Government Code sections 895 through 895.8.

Section 13. Insurance and Indemnity
Pioneer shall acquire and maintain such insurance coverage as is necessary to protect the interests of Pioneer, the Members, and the public. The insurance shall also contain a written endorsement to such policy or policies, which names each of the Voting Members as additional insureds. Pioneer shall defend, indemnify, and hold harmless the Members, and each of their respective Board or Council members, officers, agents and employees, from any and all claims, losses, damages, costs, injuries, and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, and omissions of Pioneer under this Agreement.

Item 3D 49
Section 14. Withdrawal
A. Right to Withdraw by Voting Member. A Voting Member may withdraw its participation in the CCA Program, effective as of the beginning of Pioneer’s fiscal year, by giving no less than 12 months advance written notice of its election to do so, which notice shall be given to Pioneer and each Voting Member. Withdrawal of a Voting Member shall require an affirmative vote of its governing board.

B. Right to Withdraw By Voting Member After Amendment. Notwithstanding Section 14A, a Voting Member may withdraw its membership in Pioneer following an amendment to this Agreement adopted by the Board which the Board Member appointed as the representative of a Voting Member voted against provided such notice is given in writing within thirty (30) days following the date of the vote. Withdrawal of a Member shall require an affirmative vote of its governing board and shall not be subject to the twelve month advance notice provided in Section 14A. In the event of such withdrawal, the Member shall be subject to the provisions of Section 15B.

C. Continuing Liability; Further Assurances. A Voting Member that withdraws its participation in the CCA Program may be subject to certain continuing liabilities, as described in Section 15B. The withdrawing Voting Member and Pioneer shall execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal of such Voting Member from participation in the CCA Program.

D. Withdrawal of Associate Member. The rights of an Associate Member to withdraw from Pioneer shall be governed by the applicable PACE Agreement or CCC Agreement.

Section 15. Termination
A. Involuntary Termination of a Member. Participation of a Member in the CCA program may be terminated for material non-compliance with provisions of this Agreement or any other agreement relating to the Member’s participation in the CCA Program upon a vote of Board Members as provided in Section 8A. Prior to any vote to terminate participation with respect to a Member, written notice of the proposed termination and the reason(s) for such termination shall be delivered to the Member whose termination is proposed at least 30 days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item.

The written notice of proposed termination shall specify the particular provisions of this Agreement or other agreement that the Member has allegedly violated.

The Member subject to possible termination shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination. A Member that has had its participation in the CCA Program terminated may be subject to certain continuing liabilities, as described in Section 15B.

Item 3D 50
B. Continuing Liability; Refund. Upon a withdrawal or involuntary termination of a Member, the Member shall remain responsible for any claims, demands, damages, or liabilities arising from the Member’s membership or participation in the CCA Program through the date of its withdrawal or involuntary termination, it being agreed that the Member shall not be responsible for any liabilities arising after the date of the Member’s withdrawal or involuntary termination. Claims, demands, damages, or liabilities for which a withdrawing or terminated Member may remain liable include, but are not limited to, losses from the resale of power contracted for by Pioneer to serve the Member’s load. With respect to such liability, upon notice by an Member that it wishes to withdraw from the program, Pioneer shall notify the Member of the minimum waiting period under which the Member would have no costs for withdrawal if the Member agrees to stay in the CCA Program for such period. The waiting period will be set to the minimum duration such that there are no costs transferred to remaining ratepayers. If the Member elects to withdraw before the end of the minimum waiting period, the charge for exiting shall be set at a dollar amount that would offset actual costs to the remaining ratepayers, and may not include punitive charges that exceed actual costs. In addition, such Member also shall be responsible for any costs or obligations associated with the Member’s participation in any program in accordance with the provisions of any agreements relating to such program provided such costs or obligations were incurred prior to the withdrawal of the Member. Pioneer may withhold funds otherwise owing to the Member or may require the Member to deposit sufficient funds with Pioneer, as reasonably determined by Pioneer and approved by a vote of the Board, to cover the Member’s liability for the costs described above. Any amount of the Member’s funds held on deposit with Pioneer above amounts not required to pay any liabilities or obligations shall be returned to the Member. The liability of any Member under this section 15B is subject and subordinate to the provisions of Section 12, and nothing in this section 15B shall reduce, impair, or eliminate any immunity from liability provided by Section 12.

C. Mutual Termination. This Agreement may be terminated by mutual agreement of all the Voting Members; provided, however, the foregoing shall not be construed as limiting the rights of a Voting Member to withdraw its participation in the CCA Program, as described in Section 14A.

D. Disposition of Property upon Termination of Pioneer. Upon termination of this Agreement, any surplus money or assets in possession of Pioneer for use under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under this Agreement and under any program documents, shall be returned to the then-existing Voting Members in proportion to the contributions made by each. If no such contributions have been made, then such surplus after payment of all liabilities, costs, expenses, and charges shall be distributed to each Voting Member based on Annual Energy Use Divided by Total Annual Energy, multiplied by 100. “Annual Energy Use” means the annual electricity usage, expressed in kilowatt hours (“kWh”) within the Voting Member’s respective jurisdiction, and “Total Annual Energy” means the sum of all the Members Item 3D 51
Annual Energy Use. All measures of kilowatt hours shall be set using the electric load forecast upon which the current annual budget was based. If a Member has more than one Board Member, the distribution will be made pursuant to the above calculation as it relates to the respective jurisdiction.

E. Negotiations with Associate Members. If the Voting Members wish to terminate this Agreement, or if the Voting Members elect to withdraw from the CCA Program following an amendment to this Agreement as provided in Section 14B, but two or more Associate Members wish to continue to participate in the CCA Program, the Voting Members will negotiate in good faith with such Associate Members to allow the Associate Members to become the Voting Members to this Agreement or to effect a transfer of CCA Program operations to another entity.

Section 16. Associate Members
A. With the approval of the Board, any qualified public agency (as defined by Section 6500 of the JPA law) may become a non-voting Associate Member of this Agreement for purposes of participating in the CCA Program. A public agency requesting such membership may apply by presenting to Pioneer a resolution of the public agency approving of this form of participation.

B. Any qualified public agency (as defined by Section 6500 of the JPA law) may become a non-voting Associate Member of this Agreement for purposes of participating in the PACE Program upon (i) such qualified public agency (a) adopting a resolution expressing its desire to become a non-voting Associate Member to this Agreement and authorizing the implementation of a PACE Program within the boundaries of its jurisdiction and (b) executing a PACE Agreement and (ii) the Board approving the qualified public agency as a nonvoting Associate Member.

C. The date and terms upon which the applying public agency will become a nonvoting Associate Member will be determined by the Board and set forth in a CCA Agreement or PACE Agreement, as applicable.

Section 17. Termination of Powers
Pioneer shall continue to exercise the powers herein conferred upon it until termination of this Agreement, and thereafter shall continue to exercise only such powers as to enable it to pay and discharge all costs, expenses, and charges legally incurred hereunder, and to dispose of, divide and distribute any property required as a result of the joint exercise of such powers.

Section 18. Disposition of Assets; Property and Money
Upon termination of this Agreement under Section 15, all costs, expenses, and charges legally incurred by Pioneer shall be paid and discharged; and Pioneer shall sell such property as may be necessary and shall distribute to the federal or State government such property and funds as are lawfully required; the balance of such property and any surplus money on hand shall be Item 3D 52
distributed or returned in proportion to contributions made by the affected Members except to the extent otherwise agreed upon by the affected Members.

Section 19. Amendments
This Agreement may only be amended by a written amendment approved by a vote of Board Members as provided in Section 8. Amendments to Section 4 of this Agreement, and the addition of new Voting Members shall also be separately approved by a duly adopted resolution of the governing board of each Member. Pioneer shall provide written notice to all Members of amendments to this Agreement at least 30 days prior to the date upon which the proposed amendment is being considered by the Board. If the proposed amendment is adopted by the Board, the Authority shall provide prompt written notice to all Members of the effective date of such amendment along with a copy of the amendment.

Section 20. Severability
Should any part, term or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining portions of provisions shall not be affected thereby.

Section 21. Entire Agreement
This Agreement contains the entire agreement between the Members and supersedes all prior understanding between them with respect to the subject matter of this Agreement. There are no promises, terms, conditions or obligations, oral or written, between or among the Members relating to the subject matter of this Agreement that are not fully expressed in this Agreement.

This Agreement may not be modified, changed, supplemented or terminated, nor may any obligation under this Agreement be waived, except as provided in Section 19.

WITNESS THE AGREEMENT HEREOF the date set opposite our respective entities:

Item 3D 53
Exhibit A
Voting Members and Associate Members
Section A.1 Voting Members
City of Auburn
City of Colfax
City of Grass Valley
City of Lincoln
City of Nevada City
City of Placerville
City of Rocklin
County of El Dorado
County of Placer
Town of Loomis
Section A.2 Associate Members
City of Folsom
County of Sacramento
Town of Truckee
Item 3D 54
13065-0001\2852296v7.doc

SECOND AMENDED AND RESTATED JOINT EXERCISE OF POWERS

AGREEMENT FOR THE SIERRA VALLEYPIONEER COMMUNITY ENERGY

AUTHORITY
THISThis Second Amended and Restated Joint Exercise of Powers Agreement (hereafter “Agreement”) amends and restates the Amended and Restated Joint Exercise of Powers Agreement for the SIERRA VALLEY(“Amended and Restated JPA”), with the effective date of February 22, 2017, for PIONEER COMMUNITY ENERGY AUTHORITY, (hereafter “Authority”) originally entered as of September 9, 2015, (the “Original Agreement”) which was by and between the COUNTY OF PLACER, and the CITY OF COLFAX, bothPioneer”), as amended and executed pursuant to Amendments No. 1 through 5, by and among the Voting Members (including the New Voting Members) and the Associate Members listed in Exhibit A to this Agreement, all public entities of the State of California. By this amendment and restatement it becomes a Joint Exercise of Powers Agreement by and between the COUNTY OF PLACER, the CITY OF COLFAX and the cities of Rocklin, Lincoln and Auburn and the town of Loomis within the County of Placer who become signatories to this Agreement (the “New Voting Members”, and together with the County of Placer and the City of Colfax, the “Voting Members”), as well as those local agencies that become signatories to this Agreement as Associate Members, and relates to the joint exercise of powers among all of the signatories hereto either as Voting Members or Associate Members (hereafter collectively referred to as the “Members”).

RECITALS:

A. Whereas, each of the Members has a vested interest in the economic well-being of its respective jurisdiction and the region as a whole as well as energy efficiency and clean energy growth and development;
B. Whereas, the Members desire to enter into this Agreement to provide for local control of energy resources, the adoption of programs to foster economic development, energy efficiency, and resource conservation, and to further define and describe the scope of powers to be exercised by the AuthorityPioneer; C. Whereas, the Members share various powers under California law, including but not limited to the power to aggregate electric load, to purchase and supply electricity for themselves and customers within their jurisdictions, and the power to enter into voluntary contractual assessments with property owners to provide financing for the installation of public and private improvements authorized within their jurisdictions;
D. Whereas, the purposes for entering into this restated Agreement include, but are not limited to:
1) Providing electric power and other forms of energy to customers at a competitive cost;
Item 3D 55
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13065-0001\2852296v7.doc
2) Promoting long-term electric rate stability and energy security and reliability for residents through local control of electric generation resources and the overall power supply portfolio.
3) Carrying out programs to reduce energy consumption;
4) Stimulating and sustaining the local economy by developing local jobs in renewable energy; and
5) Reducing greenhouse gas emissions related to the use of electric power and other forms of energy in Placer County and neighboring regions; E. Whereas, it is the intent of this Agreement to promote the development and use of a wide range of energy sources and energy efficiency programs, including but not limited to hydroelectric, biomass, landfill gas, conversion of waste-to-energy, solar, and wind energy production;
F. Whereas, Pacific Gas and Electric and Liberty Energy are the investor owned providers of retail electric service throughout the Voting Member jurisdictions and a Community Choice Aggregator is authorized to aggregate electrical load served by such investor owned providers within its members’ jurisdiction. Each of the Voting Members must adopt an ordinance electing to implement through the AuthorityPioneer a common Community Choice Aggregation pursuant to California Public Utilities Code Sections 331.1(b) and 366.2(12)(A).¶ G. Whereas, on September 9, 2015 the County of Placer and the City of Colfax entered into the original Joint Exercise of Powers Agreement for the purpose of establishing the Sierra Valley Energy Authority as a joint powers authority under the Joint Exercise of Powers Act, Government Code Section 6500, et seq.; and ¶ H. Whereas, the Amended and Restated JPA became effective on February 22, 2017 and authorized the Cities of Auburn, Lincoln, Rocklin, and the Town of Loomis to become Voting Members of the Joint Exercise of Powers Agreement and established a Community Aggregation Program within the jurisdictions of the Voting Members; and¶
I. Whereas, Resolution No. 2017-3 of the Sierra Valley Energy Authority approved a name change from Sierra Valley Energy Authority to Pioneer Community Energy, as it is known today; and ¶
J. Whereas, Amendment No. 1 to the Amended and Restated JPA, which was approved by the Governing Board on December 27, 2020 and became effective March 9, 2021, authorized the County of El Dorado and the City of Placerville to become Voting Members; and ¶
K. Whereas, Amendments No. 2 through 4 to the Amended and Restated JPA made certain changes to the Amended and Restated JPA; and¶
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L. Whereas, Amendment No. 5 to the Amended and Restated JPA, which was approved by the Governing Board on October 25, 2022 and became effective February 27, 2023, authorized the City of Nevada City and the City of Grass Valley as Voting Members; and ¶
M. Whereas, the Voting Members wish to amend and restate the Amended and Restated JPA to clean up and streamline the Agreement.

NOW THEREFORE, in consideration of the mutual promises, covenants and conditions herein, the Members hereto agree to establish a joint powers authority as follows:

Section 1. Authority for this Joint Exercise of Powers Agreement This Agreement is made pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (commencing with Section 6500) relating to the joint exercise of power common to the counties and public agencies and other powers specified therein (hereinafter the “Act”). Under Sections 6505 and 6507 of the Act, the AuthorityPioneer is a public agency separate from its Members. As provided by Section 6508.1 of the Act, and Section 12 hereof the debts, liabilities or obligations of the AuthorityPioneer shall not be the debts, liabilities or obligations of the individual Members, unless the governing body of a Member agrees in writing to assume any of those debts, liabilities or obligations.

Section 2. Purpose of Agreement
The purpose of this Agreement is to establish an independent public agency in order to exercise powers common to the Members and other powers granted to the AuthorityPioneer under the Act, to study, promote, develop, conduct, operate, and manage energy, energy efficiency and conservation, and other energy-related programs, to exercise all other powers necessary and incidental to accomplishing these purposes, and to provide a Community Choice Aggregation (hereinafter “CCA”) Program, pursuant to California Public Utilities Code Sections 331.1 and 366.2, and as further described in Section 10.

Without limiting the generality of the foregoing, the Members also intend for this Agreement to be used as a mechanism by which Voting Members and non-voting Associate Members may authorize the AuthorityPioneer to provide Property Assessed Clean Energy (“PACE”) Programs pursuant to Chapter 29 of the Improvement Bond Act of 1911, Division 7 of the California Streets and Highways Code (“Chapter 29”). The AuthorityPioneer may provide PACE Programs pursuant to Chapter 29 within the boundaries of each Voting Member as set forth in Section 10(C) herein, and within the boundaries of each non-voting Associate Member as set forth in Sections 16 herein. The Members intend that other agreements with Associate Members shall define the terms and conditions associated with the implementation of the CCA Program, the PACE Program, and any other energy programs approved by the AuthorityPioneer within the Item 3D 57
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territorial jurisdiction of such Associate Members. As of the Effective Date of this Agreement, the Associate Members include the County of Nevada, County of Sacramento, City of Grass Valley, City of Folsom, City of Nevada City and Town of Truckee.

Section 3. Effective Date and Term
This Agreement shall be effective as ana second amendment and restatement of the Original Agreement, and the AuthorityPioneer shall continue to exist as a separate public agency under the terms of this Agreement upon executionafter approval and signature of the Second Amended and Restated Agreement by the County of PlacerNew Members and after the City of ColfaxCalifornia Public Utilities Commission certifies the Implementation Plan filed by Pioneer to include the New Members. This Agreement shall be in full force and effect until terminated in the manner herein provided, subject to the rights of the Members to withdraw from the AuthorityPioneer.

Section 4. Powers
The AuthorityPioneer shall have all powers common to the Members, and such additional powers accorded to it by law, including the power to develop and implement comprehensive energy and resource development and conservation programs, as described herein. Unless state or federal law provides otherwise, any facilities, buildings or structures located, constructed, or caused to be constructed by the AuthorityPioneer within the territory of the AuthorityPioneer shall comply with the General Plan, zoning and building laws of the local jurisdiction within which the facilities, buildings or structures are constructed and comply with the California Environmental Quality Act (CEQA). As required by Government Code Section 6509, the power of the AuthorityPioneer is subject to the restrictions upon the manner of exercising power possessed by the City of Colfax.

The AuthorityPioneer is authorized, in its own name, to exercise all powers and do all acts necessary and proper to carry out the provisions of this Agreement and fulfill its purposes, including, but not limited to, each of the following powers, subject to the voting requirements set forth in Section SC5C and Section 8:

A. to make and enter into contracts;
B. to employ agents and employees, including but not limited to an Executive Director;
C. to acquire, contract, manage, maintain, and operate ally buildings, infrastructure, works, or improvements;
D. to acquire property by eminent domain, or otherwise, except as limited under Section 6508 of the Act, and to hold or dispose of any property; E. to lease any property;
F. to sue and be sued in its own name;
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G. to incur debts, liabilities, obligations and to issue bonds, and to make and enter into agreements and other documents of any nature whatsoever as may be necessary or convenient in the exercise of the powers provided under the Marks-Roos Local Bond Pooling Act of 1985, as amended, and other provisions of California law that authorize public agencies to issue bonds and incur indebtedness, including but not limited to loans from private lending sources pursuant to its temporary borrowing powers such as Government Code Sections 53850 et. seq.;
H. to form subsidiary or independent corporations or entities, if necessary to carry out energy supply and energy conservation programs and to take advantage of legislative or regulatory changes;
I. to deposit its money pursuant to Section 6505.5 of the Act and to invest its money which is not required for the immediate use of the AuthorityPioneer, as the AuthorityPioneer determines is advisable in the same manner and upon the same conditions as local agencies, pursuant to Section 53635 of the California Government Code;
J. to apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state, or local public agency;
K. to submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;
L. to adopt rules, regulations, policies, bylaws and procedures governing the operation of the AuthorityPioneer (“Operating Rules and Regulations”); M. to establish and operate a CCA program, and make and enter into service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCA Program, including the acquisition of electric power supply and the provision of retail and regulatory support services; N. to establish and operate one or more PACE programs pursuant to Chapter 29, and to enter into one or more agreements, including without limitation, participation agreements, implementation agreements and joint powers agreements and amendments thereto to fulfill such programs both within and outside the jurisdictional boundaries of the AuthorityPioneer;
O. O to establish a non-voting “Associate Member” status that provides membership in the AuthorityPioneer to jurisdictions that are outside jurisdictional boundaries of the AuthorityPioneer’s Voting Members, but within whose boundaries a PACE, CCA, or other energy program is established and implemented by the AuthorityPioneer on behalf of the Associate Member. Said jurisdictions shall adopt one or more agreements (a “PACE Agreement”, “CCA Agreement”, or other energy program agreement, as applicable) on terms and conditions established by the AuthorityPioneer. The rights of Associate Members Item 3D 59
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shall be limited solely to those terms and conditions expressly set forth in the PACE Agreement, CCA Agreement or other energy program agreement for the purposes of implementing the PACE Program, CCA Program or other energy program, respectively, within the jurisdictional boundaries of the Associate Member. Except as expressly provided for by the PACE Agreement, CCA Agreement or other energy program agreement, Associate Members shall not have any rights otherwise granted to AuthorityPioneer Members by this Agreement, including but not limited to the right to vote, the right to amend this Agreement and the right to sit on committees or boards established under this Agreement;
P. to execute agreements for the purpose of authorizing the AuthorityPioneer to implement, manage and administer area-wide and regional programs in the interest of providing energy supply, development of energy generation, energy efficiency, resource conservation, local public welfare and other economically related energy programs. The costs incurred by the AuthorityPioneer in implementing a program, including indirect costs, shall be costs of the AuthorityPioneer and shall not be assessed to the Members, unless approved by the Governing Body of the Member.

Section 5. Governance and Internal Organization
A. Governing Board. The governing body of the AuthorityPioneer shall consist of up to a eleven (11) person Board, consisting of two (2) members of the Placer County Board of Supervisors, and one (1) member each for all other Voting Members, appointed respectively by the El Dorado County Board of Supervisors, the Cities of Auburn, Colfax, Grass Valley, Rocklin, Lincoln, Nevada City, Placerville and the Town of Loomiseach Voting Member that is or becomes a signatory to this Agreement (“Board Member”). The total number of Board Members shall equal the total number of Voting Members listed in Exhibit A plus one (1).

The BoardBoards of Supervisors from Placer County, the Board of Supervisors from El Dorado County, and the City/, City Councils and Town Councils set out aboveof the Voting Members listed in Exhibit A shall respectively appoint such member(s) set out above and not less than one alternate member per Board Member. The term of office of each Board Member and respective alternate may be terminated at any time by the appointing Board of Supervisors or, City/ Council or Town Council. The designated alternate shall have authority to attend, participate, and vote at any meeting of the Board whenever the regular member, for whom they are designated to act as an alternate, is absent from the meeting.

B. Quorum. The majority of the members of the Board shall constitute a quorum.

No action may be taken by the Board unless a quorum is present, except that less than a quorum may adjourn a meeting from time to time.

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C. Powers and Function of Board. The Board will exercise governance, policy guidance and oversight over the business and activities of the AuthorityPioneer, consistent with this Agreement and applicable law. Action by the AuthorityUnless otherwise specified in Section 8, action by Pioneer Board will be taken by majority vote of the Board Members present.

F. Meetings. All meetings of the Board shall be held subject to the provisions of the Ralph M. Brown Act, Division 2, Chapter 9 of the California Government Code (hereafter, the “Brown Act”). The Board shall hold at least four regular meetings per year, but the Board may provide for the holding of regular meetings at more frequent intervals. The date, hour and place of each regular meeting shall be fixed by resolution or ordinance of the Board. Regular meetings may be adjourned to another meeting time. Special meetings of the Board may be called in accordance with the provisions of California Government Code Section 54956. Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law.

G. Bylaws. The Board shall adopt bylaws for the conduct of business that shall not be inconsistent with the provisions of this Agreement, and the laws of the State of California.

H. Board Member Compensation. Board Members shall serve without compensation from the AuthorityPioneer. However, Board Members may be compensated by their respective appointing authorities. The Board, however, may adopt by resolution a policy relating to the reimbursement by the AuthorityPioneer of expenses incurred by Board Members.

Section 6. Executive Director and Other Staff
A. Executive Director. The Board shall appoint an Executive Director for the AuthorityPioneer, who shall be responsible for the day-to-clay operation and management of the AuthorityPioneer. The Executive Director may exercise all powers of the AuthorityPioneer, except the powers specifically set forth in Section 4, or those powers that by law must be exercised by the Board. The Executive Director shall hire and supervise any AuthorityPioneer employees or consultants.

B. Executive Director Reports to the Board. The Executive Director shall prepare, no later than the 20th day of each first month of each fiscal quarter, a report to the Board on the operations of the AuthorityPioneer during the preceding fiscal Item 3D 61
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quarter. The Bylaws shall specify the information to be included in the Executive Director’s reports.¶
C. Services Providers. The Executive Director may appoint one or more services providers to serve as the AuthorityPioneer’s agent(s) for planning, implementing, operating and administering the PACE Program, the CCA Program, and any other program approved by the Board, in accordance with the provisions of a written agreement between the AuthorityPioneer and the appointed administrative services provider or providers (a “Services Agreement”). The appointed services provider may be one of the Voting Members. A Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all tasks necessary for planning, implementing, operating and administering the PACE Program, the CCA Program and other approved programs. The Services Agreement shall set forth the term of the Agreement and the circumstances under which the Services Agreement may be terminated by the AuthorityPioneer. This section shall not in any way be construed to limit the discretion of the AuthorityPioneer to hire its own employees to administer the PACE Program, the CCA Program or any other program.

D. Independent Monitor. The Board may appoint or contract for the services of an independent monitor to review programs operated by the AuthorityPioneer and to report to the Board.

Section 7. Treasurer and Auditor-Controller
The Governing Board shall appoint a Treasurer for the AuthorityPioneer. The Treasurer shall be the depository of the AuthorityPioneer and shall have all of the duties and responsibilities specified in Section 6505.5 of the Act. The duties and obligations of the Treasurer are further specified in Section 9. The Governing Body shall appoint an Auditor-Controller for the AuthorityPioneer in compliance with the Act. The Auditor-Controller of the AuthorityPioneer shall make or contract with a certified public accountant to cause an annual audit in compliance with Section 6506 of the Act. The authorityPioneer of the Board to appoint a Treasurer and Auditor/Controller shall include the authorityPioneer to combine both offices to be held by one officer or employee pursuant to section 6505.6 of the Act.

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Section 8. Special Voting Requirements and Voting Shares A. Involuntary Termination or Amendment. Action of the Board on the matters set forth in Section 1415A (involuntary termination of a Member), or Section 18 (amendment of this Agreement) shall require the affirmative vote of at least two-thirds of the Board Members; provided, however, that for votes to involuntarily terminate a Member under Section 14A, the Board Member(s) for the Member subject to involuntary termination may not vote, and the number of Board Members constituting two-thirds of all Board Members shall be recalculated as if the Voting Member subject to possible termination were not a Voting Member.¶
B. Amendment. Action of the Board on matters set forth in Section 19 (amendment of this Agreement) shall require an affirmative vote of at least two-thirds of the Board members.

C. B. Eminent Domain. A decision to exercise the power of eminent domain on behalf of the AuthorityPioneer to acquire any property interest other than an easement, right-of-way, or temporary construction easement shall require a vote of at least two-thirds of all Board Members.

D. C. Contributions by Members. The imposition on any Member of any obligation to make contributions or pledge assets as a condition of continued participation in the PACE Program, the CCA Program, or other energy programs shall require a vote of at least two-thirds of all Board Members and the approval of the governing boards of the Members and Associate Members who are being asked to make such contribution or pledge.

Section 9. Financial Provisions
A. Fiscal Year. For the purposes of this Agreement, the AuthorityPioneer shall have such fiscal year from July 1 to and including the following June 30.

B. Depository. All funds of the AuthorityPioneer shall be held in separate accounts in the name of the AuthorityPioneer and not commingled with funds of any Member or any other person or entity. All funds of the AuthorityPioneer shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records of the AuthorityPioneer shall be open to inspection by the Members at all reasonable times, The Board shall contract with a certified public accountant to make an annual audit of the accounts and records of the AuthorityPioneer, which shall be conducted in accordance with the requirements of Section 6505 of the Act.

C. Expenditures. All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its Operating Rules and Regulations. The Treasurer shall draw Item 3D 63
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checks or warrants or make payments by other means for claims or disbursements not within an applicable budget only upon the prior approval of the Board.

D. Budget. The initial budget shall be approved by the Board. The Board may revise the budget from time to time through an AuthorityPioneer Document as may be reasonably necessary to address contingencies and unexpected expenses.

All subsequent budgets of the AuthorityPioneer shall be approved by the Board in accordance with the Operating Rules and Regulations.

E. Funding of Initial Costs. The County of Placer has funded certain activities necessary to implement the CCA Program. If the CCA Program becomes operational, these initial costs paid by the County of Placer shall be included in the customer charges for electric services as provided by Section 14 to the extent permitted by law, and the County of Placer shall be reimbursed from the payment of such charges by customers of the Authority. Prior to such reimbursement, the County of Placer shall provide such documentation of costs paid as the Board may request. In the event that the CCAThese costs were repaid in full when the CCAP Program does not becomebecame operational, the County of Placer shall not be entitled to any reimbursement of the initial costs it has paid from the Authority or any Member.

F. CCA Program Costs. The Members desire that all costs incurred by the AuthorityPioneer that are directly or indirectly attributable to the provision of electric, conservation, efficiency, incentives, financing, or other services provided under the CCA Program, including but limited to the establishment and maintenance of various reserves and performance funds and administrative, accounting, legal, consulting, and other similar costs, shall be recovered through charges to CCA customers receiving such electric services, or from revenues from grants or other third-party sources.

Section 10. Implementation Action and AuthorityPioneer Documents A. Each Member shall adopt an ordinance or resolution in accordance with Public Utilities Code Section 366.2(c)(12) for the purpose of specifying that the Member intends to implement a CCA Program by and through its participation in the AuthorityPioneer.

B. Each Member that wishes to participate in the CCA Program shall adopt a resolution expressing its desire to become a Member to this Agreement, and its intention to have the territory of the Member’s jurisdiction included in the service territory of the CCA.

Execution by such New Voting Member of this Agreement shall also serve to authorize AuthorityPioneer to take each step required for it to provide contractual assessment financing for the Improvements, including the levying, collecting and enforcement of contractual assessments to finance the Improvements and the issuance and enforcement of bonds and other financing instruments to represent and be secured by such contractual assessments. The New Voting Members shall not be required to adopt a PACE Agreement and shall not be subject to the rights and obligations set forth therein, but shall instead, upon becoming Voting Members hereunder, be subject to the rights and obligations expressly set forth herein.

The AuthorityPioneer may additionally provide PACE Programs pursuant to Chapter 29 within the boundaries of non-voting Associate Members, as described further in Section 16 herein.

D. Implementation Plan and Statement of Intent. The AuthorityPioneer shall cause to be prepared an Implementation Plan and Statement of Intent meeting the requirements of California Public Utilities Code Section 366.2 and any applicable California Public Utilities Commission regulations. The Implementation Plan and Statement of Intent shall specify the service territory of the CCA to be within the boundaries of the Member jurisdictions that have taken the actions specified in A and B above. The Implementation Plan and Statement of Intent shall not be filed with the California Public Utilities Commission until it is approved by the Board in the manner provided by Section 5.

If a City or County adopts an ordinance and resolution pursuant to A and B above, expressing its desire to become a Member to this Agreement subsequent to the filing of the then most recently filed Implementation Plan and Statement of Intent, the Board shall direct the preparation and filing of a new or amended Implementation Plan and Statement of Intent to include the territory of the County or City as soon as reasonably practicable. The Board may require the County or City to pay the cost of preparation and submission of the Implementation Plan and Statement of Intent. Upon California Public Utilities Commission certification of the new or amended Implementation Plan and Statement of Intent, the Board shall take an action to approve the membership of the County or City. The County or City shall then be entitled to all rights under this Agreement, including a seat on the Board and voting rights pursuant to Section 5.A and Section 8.

E. Termination of CCA and PACE Program. Nothing contained in this Article or this Agreement shall be construed to limit the discretion of the AuthorityPioneer Item 3D 65
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to terminate the implementation or operation of the CCA or the PACE Program at any time in accordance with any applicable requirements of state law.

F. AuthorityPioneer Documents. The Members acknowledge and agree that the affairs of the AuthorityPioneer will be implemented through various documents duly adopted by the Board through Board resolution. The Members agree to abide by and comply with the terms and conditions of all such documents that may be adopted by the Board, subject to the Members’ right to withdraw from the AuthorityPioneer as described in Section 14.

Section 11. Records and Reports
The Board shall establish reporting requirements and direct staff to maintain such reports, including, but not limited to, funds and accounts as may be required by good accounting practice or by law. All books and records of the AuthorityPioneer shall be open to inspection at all reasonable times by any Member to this Agreement or its representatives. Annual audits of the AuthorityPioneer’s accounts and records shall be made by an independent CPA firm, and reports shall be filed in the manner provided in Section 6505 of the California Government Code.

Section 12. Debts, Liabilities and Obligations
The AuthorityPioneer is a public agency separate from the Members. Pursuant to Sections 6508.1 of the Act, the debts, liabilities or obligations of the AuthorityPioneer shall not be debts, liabilities or obligations of the individual Members unless the governing board of a Member agrees in writing to assume any of the debts, liabilities or obligations of the AuthorityPioneer. A Member who has not agreed to assume an Authoritya Pioneer debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Members agree to assume the debt, liability or obligation of the AuthorityPioneer. Should any debt, liability or obligation of the AuthorityPioneer not be waived or allowed payable through assets of the AuthorityPioneer, none of the County or City members shall be liable, except as provided by Government Code sections 895 through 895.8.

Section 13. Insurance and Indemnity
The AuthorityPioneer shall acquire and maintain such insurance coverage as is necessary to protect the interests of the AuthorityPioneer, the Members, and the public. The insurance shall also contain a written endorsement to such policy or policies, which names each of the [Voting Members] as additional insureds. The AuthorityPioneer shall defend, indemnify, and hold harmless the Members, and each of their respective Board or Council members, officers, agents and employees, from any and all claims, losses, damages, costs, injuries, and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, and omissions of the AuthorityPioneer under this Agreement.

Section 14. Withdrawal
A. Right to Withdraw by Voting Member. A Voting Member may withdraw its participation in the CCA Program, effective as of the beginning of the AuthorityPioneer’s fiscal year, by giving no less than 12 months advance written Item 3D 66
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notice of its election to do so, which notice shall be given to the AuthorityPioneer and each Voting Member. Withdrawal of a Voting Member shall require an affirmative vote of its governing board.

B. Right to Withdraw By Voting Member After Amendment. Notwithstanding Section 14A, a Voting Member may withdraw its membership in the AuthorityPioneer following an amendment to this Agreement adopted by the Board which the Board Member appointed as the representative of a Voting Member voted against provided such notice is given in writing within thirty (30) days following the date of the vote. Withdrawal of a Member shall require an affirmative vote of its governing board and shall not be subject to the twelve month advance notice provided in Section 14A. In the event of such withdrawal, the Member shall be subject to the provisions of Section 15B.

C. Continuing Liability; Further Assurances. A Voting Member that withdraws its participation in the CCA Program may be subject to certain continuing liabilities, as described in Section 15B. The withdrawing Voting Member and the AuthorityPioneer shall execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal of such Voting Member from participation in the CCA Program.

D. Withdrawal of Associate Member. The rights of an Associate Member to withdraw from the AuthorityPioneer shall be governed by the applicable PACE Agreement or CCC Agreement.

The written notice of proposed termination shall specify the particular provisions of this Agreement or other agreement that the Member has allegedly violated.

B. Continuing Liability; Refund. Upon a withdrawal or involuntary termination of a Member, the Member shall remain responsible for any claims, demands, damages, or liabilities arising from the Member’s membership or participation in Item 3D 67
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the CCA Program through the date of its withdrawal or involuntary termination, it being agreed that the Member shall not be responsible for any liabilities arising after the date of the Member’s withdrawal or involuntary termination. Claims, demands, damages, or liabilities for which a withdrawing or terminated Member may remain liable include, but are not limited to, losses from the resale of power contracted for by the AuthorityPioneer to serve the Member’s load. With respect to such liability, upon notice by an Member that it wishes to withdraw from the program, the AuthorityPioneer shall notify the Member of the minimum waiting period under which the Member would have no costs for withdrawal if the Member agrees to stay in the CCA Program for such period. The waiting period will be set to the minimum duration such that there are no costs transferred to remaining ratepayers. If the Member elects to withdraw before the end of the minimum waiting period, the charge for exiting shall be set at a dollar amount that would offset actual costs to the remaining ratepayers, and may not include punitive charges that exceed actual costs. In addition, such Member also shall be responsible for any costs or obligations associated with the Member’s participation in any program in accordance with the provisions of any agreements relating to such program provided such costs or obligations were incurred prior to the withdrawal of the Member. The AuthorityPioneer may withhold funds otherwise owing to the Member or may require the Member to deposit sufficient funds with the AuthorityPioneer, as reasonably determined by the AuthorityPioneer and approved by a vote of the Board, to cover the Member’s liability for the costs described above. Any amount of the Member’s funds held on deposit with the AuthorityPioneer above amounts not required to pay any liabilities or obligations shall be returned to the Member. The liability of any Member under this section 15B is subject and subordinate to the provisions of Section 12, and nothing in this section 15B shall reduce, impair, or eliminate any immunity from liability provided by Section 12.

C. Mutual Termination. This Agreement may be terminated by mutual agreement of all the Voting Members; provided, however, the foregoing shall not be construed as limiting the rights of a AssociateVoting Member to withdraw its participation in the CCA Program, as described in Section 14A.

D. Disposition of Property upon Termination of AuthorityPioneer. Upon termination of this Agreement, any surplus money or assets in possession of the AuthorityPioneer for use under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under this Agreement and under any program documents, shall be returned to the then-existing Voting Members in proportion to the contributions made by each. If no such contributions have been made, then such surplus after payment of all liabilities, costs, expenses, and charges shall be distributed to each Voting Member based on Annual Energy Use Divided by Total Annual Energy, multiplied by 100. “Annual Energy Use” means the annual electricity usage, expressed in kilowatt hours (“kWh”) within the Voting Member’s respective jurisdiction, and “Total Annual Energy” means the sum of all the Members Annual Energy Use. All measures of kilowatt hours shall be set using the electric load forecast upon which the current annual budget was Item 3D 68
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based. If a Member has more than one Board Member, the distribution will be made pursuant to the above calculation as it relates to the respective jurisdiction.

Section 16. Associate Members
A. With the approval of the Board, any qualified public agency (as defined by Section 6500 of the JPA law) may become a non-voting Associate Member of this Agreement for purposes of participating in the CCA Program. A public agency requesting such membership may apply by presenting to the AuthorityPioneer a resolution of the public agency approving of this form of participation.

C. The date and terms upon which the applying public agency will become a non-voting Associate Member will be determined by the Board and set forth in a CCA Agreement or PACE Agreement, as applicable.

Section 17. Termination of Powers
The AuthorityPioneer shall continue to exercise the powers herein conferred upon it until termination of this Agreement, and thereafter shall continue to exercise only such powers as to enable it to pay and discharge all costs, expenses, and charges legally incurred hereunder, and to dispose of, divide and distribute any property required as a result of the joint exercise of such powers.

Section 18. Disposition of Assets; Property and Money
Upon termination of this Agreement under Section 1415, all costs, expenses, and charges legally incurred by the AuthorityPioneer shall be paid and discharged; and the AuthorityPioneer shall sell such property as may be necessary and shall distribute to the federal or State government such property and funds as are lawfully required; the balance of such property and any surplus Item 3D 69
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money on hand shall be distributed or returned in proportion to contributions made by the affected Members except to the extent otherwise agreed upon by the affected Members.

Section 19. Amendments
This Agreement may notonly be amended except by a written amendment approved by a vote of Board membersMembers as provided in Section 8. The AuthorityAmendments to Section 4 of this Agreement, and the addition of new Voting Members shall also be separately approved by a duly adopted resolution of the governing board of each Member. Pioneer shall provide written notice to all Members of amendments to this Agreement, including the effective date of such amendments, at least 30 days prior to the date upon which the proposed amendment is being considered by the Board votes on such amendments. Any. If the proposed amendment required to add a new Voting Member shall only be executed by the Voting Members. Any amendment required to add a new Associate Member shall only be executedis adopted by the new Associate Member andBoard, the Authority shall provide prompt written notice to all Members of the effective date of such amendment along with a copy of the amendment.

This Agreement may not be modified, changed, supplemented or terminated, nor may any obligation under this Agreement be waived, except as provided in Section 19.

Section 22. Counterparts and Effective Date
This Agreement may be executed in counterparts and be as valid and binding as if each Member signed the same copy. A faxed copy of the executed signature page shall be sufficient to cause the terms of this Agreement to become fully operative. The effective date of the Agreement shall be the date the second member has executed the Agreement, WITNESS THE AGREEMENT HEREOF the date set opposite our respective entities:¶ Item 3D 70
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Item 3D 71
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¶
CITY OF ROCKLIN, a Municipal Corporation¶
¶
EXECUTED ON ¶
By: ¶
Mayor, ¶
¶
Exhibit A¶
Voting Members and Associate Members¶
¶
Section A.1 Voting Members ¶
City Councilof Auburn¶
¶
And approved as to form:¶
¶
City Attorneyof Colfax¶
¶
ATTEST:¶
¶
City Clerkof Grass Valley ¶
¶
Item 3D 72
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¶
TOWN OF LOOMIS, a Municipal Corporation¶
¶
EXECUTED ON ¶
By: ¶
Mayor, ¶
City of Lincoln¶
City of Nevada City¶
City of Placerville¶
City of Rocklin¶
County of El Dorado¶
County of Placer¶
Town of Loomis¶
¶
And approved as to form:¶
¶
¶
Town Attorney¶
¶
ATTEST:¶
¶
¶
Town Clerk¶
¶
Item 3D 73
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¶
CITY OF LINCOLN, a Municipal Corporation¶
¶
EXECUTED ON ¶
By: ¶
Peter Gilbert, Mayor¶
¶
And approved as to form:¶
¶
¶
Mona Ebrahirni, ¶
Section A.2 Associate Members¶
City Attorneyof Folsom¶
¶
ATTEST:¶
¶
¶
Gwen Scanlon, City Clerk¶
County of Sacramento¶
Town of Truckee
Item 3D 74
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Item 3D 76
City of Colfax Cash Summary – November 2023
Staff Report January 24, 2024
Staff Report to City Council
FOR THE JANUARY 24, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Shanna Stahl – Administrative Services Officer Subject: Cash Summary – November 2023
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 regarding 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 November 2023.

Some monthly highlights are listed below:
• November revenues included:
o Allocation for Sales Tax revenues reported/paid to the State for the month of September 2023 (two-month lag).
o Capital project reimbursement from SACOG for the Zoning Code update • November expenditures included:
o Approved capital project expenditures – expenditures on WWTP Construction Grant and other grant funded projects.
• Negative cash fund balances at the end of September are due to the timing of funding allocations and reimbursements:
o Fund 250 – Streets – Roads/Transportation. These expenses are funded by annual Transportation funding through Placer County Transportation Agency (PCTPA), transfer of City Gas Tax revenues, and a General Fund allocation. PCTPA has just initiated the claim process for the current fiscal year and Colfax has submitted fund requests in November. o Fund 358 – CDBG Road Rehabilitation. This is a reimbursable grant – the final funding of the grant has been awarded in November. CDBG has approved the start date of expenditures. The City will begin the reimbursement request process as soon as possible. o Fund 367 – SB2 Planning Grant – this is a reimbursable grant. Reimbursement requests are submitted on a quarterly basis. Final reimbursement request was made in September.

RECOMMENDED ACTION: Accept and File.

Item 3E 77
City of Colfax Cash Summary – November 2023
Staff Report January 24, 2024
o Fund 376 – Downtown Streetscape – This project is primarily (89%) funded with grant funds on a reimbursement basis. Reimbursement requests are expected to be submitted on a quarterly basis.

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 are expected to be submitted on a quarterly basis.

A reimbursement was received in November. Project funding and final reporting in January 2024. o Fund 575 – WWTP Construction Grant. This is a reimbursable grant. Reimbursement requests are scheduled to be submitted at least quarterly.
o Fund 577 – Capital Projects. This is the new project for the installation of a metal storage building at the Wastewater Treatment Plant. The project is slated to be funded by Fund 564 – Sewer Connection Fees. Funds to be transferred at project completion. o Fund 590 – Sewer Consolidation Planning Grant. This is a reimbursable grant – reimbursement requests are scheduled to be submitted quarterly upon final award of application grant. • Anticipated revenues/expenditures for December include:
o Revenues
 Allocation for Sales Tax revenues reported/paid to the State for the month of October 2023 (two-month lag).
 Capital project reimbursements.
o Expenditures
 Approved capital project expenditures. We anticipate continued large expenditures for the Wastewater Treatment Plant Construction project as the I/I Mitigation and Algae Reduction phases continue construction.
 Ongoing monthly operating expenses
 Quarterly payment for Placer County Sheriff services.

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
Item 3E 78
Prev
Yr Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Cash Balance FY2023-24 $3,911 $3,785 $3,834 $3,638 $3,789 $3,911 Cash Balance FY2022-23 $3,418 $3,412 $3,568 $3,396 $3,451 $3,644 $3,560 $3,935 $4,039 $3,819 $3,765 $4,087 $3,911 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 *Reserves (Ops, Cap, Pen) $1,095 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 Budget FY2023-24 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
City of Colfax - November 2023
General Fund Reserved Cash Analysis
(Dollars in Thousands)
Fiscal Year 2023-24
Item 3E 79
Balance
10/31/23 Revenues In* Expenses Out* Transfers Balance 11/30/23 US Bank $ 304,609.45 $ 472,696.63 $ (1,212,426.04) $ 550,000.00 $ 114,880.04 LAIF $ 8,147,059.62 $ - $ (550,000.00) $ 7,597,059.62
Total Cash - General Ledger $ 8,451,669.07 $ 472,696.63 $ (1,212,426.04) $ - $ 7,711,939.66 Petty Cash (In Safe) $ 300.00 $ 300.00
Total Cash $ 8,451,969.07 $ 472,696.63 $ (1,212,426.04) $ - $ 7,712,239.66 Change in Cash Account Balance - Total $ (739,729.41)
Attached Reports:

1. Cash Transactions Report (By Individual Fund)

2. Check Register Report (Accounts Payable) $ (1,139,667.17) Cash Receipts $ 280,014.93
Payroll Checks and Tax Deposits $ (57,953.55)
Utility Billings - Receipts $ 177,876.38
LAIF Interest $ -
Void CK - Reissued July Check $ -
$ (739,729.41) $ -
*Does not include transfers between funds
Prepared by:

Shanna Stahl, Administrative Services Officer
Reviewed by:

Mike Luken, Interim City Manager
City of Colfax
Cash Summary
November 30, 2023
Item 3E 80
Beginning
Balance
Debit
Revenues
Credit
(Expenditures)
Ending
Balance
Fund Type: 1.11 - General Fund - Unassigned
Fund: 100 - General Fund $ 3,591,280.34 $ 242,634.81 $ (132,161.84) $ 3,701,753.31 Fund: 120 - Land Development Fees $ 184,984.51 $ 12,285.99 $ (2,316.25) $ 194,954.25 Fund: 200 - Cannabis Application $ 12,434.09 $ 2,173.82 $ - $ 14,607.91 Fund Type: 1.11 - General Fund - Unassigned $ 3,788,698.94 $ 257,094.62 $ (134,478.09) $ 3,911,315.47 Fund Type: 1.14 - General Fund - Restricted
Fund: 205 - Escrow Funds $ 39,737.00 $ - $ - $ 39,737.00 Fund: 571 - AB939 Landfill Diversion $ 23,317.26 $ - $ - $ 23,317.26 Fund: 572 - Landfill Post Closure Maintenance 875,707.10 $ $ - $ (7,866.07) $ 867,841.03 Fund Type: 1.14 - General Fund - Restricted $ 938,761.36 $ - $ (7,866.07) $ 930,895.29 Fund Type: 1.24 - Special Rev Funds - Restricted
Fund: 210 - Mitigation Fees - Roads $ 146,045.17 $ - $ - 146,045.17 $ Fund: 211 - Mitigation Fees - Drainage $ 5,581.98 $ - $ - $ 5,581.98 Fund: 212 - Mitigation Fees - Trails $ 77,544.77 $ - $ - $ 77,544.77 Fund: 213 - Mitigation Fees - Parks/Rec $ 192,703.15 $ - $ - 192,703.15 $ Fund: 214 - Mitigation Fees - City Bldgs $ 104,755.84 $ - $ - 104,755.84 $ Fund: 215 - Mitigation Fees - Vehicles $ 22,878.50 $ - $ - $ 22,878.50 Fund: 217 - Mitigation Fees - DT Parking $ 35,297.38 $ - $ - $ 35,297.38 Fund: 218 - Support Law Enforcement $ 74,673.76 $ - $ - $ 74,673.76 Fund: 244 - CDBG Program Inc - ME Lending $ 503.08 $ - $ - $ 503.08 Fund: 250 - Streets - Roads/Transportation $ (90,999.72) $ - $ (16,248.38) $ (107,248.10) Fund: 253 - Gas Taxes $ 18,058.05 $ - $ (1,417.84) $ 16,640.21 Fund: 257 - Street /Road - Transit Capital $ 48,346.04 $ - $ - $ 48,346.04 Fund: 258 - Road Maintenance - SB1/RSTBG $ 229,876.80 $ 5,618.26 $ - 235,495.06 $ Fund: 270 - Beverage Container Recycling $ 19,766.28 $ - $ - $ 19,766.28 Fund: 280 - Oil Recycling $ 3,897.48 $ - $ - $ 3,897.48 Fund: 290 - SB1383 Implementation Grant $ 19,229.33 $ - $ - $ 19,229.33 Fund: 292 - Fire Department Capital Funds $ 96,515.66 $ - $ - $ 96,515.66 Fund: 342 - Fire Construction - Mitigation $ 80,202.91 $ - $ - $ 80,202.91 Fund: 343 - Recreation Construction $ 80,203.39 $ - $ - $ 80,203.39 Fund: 367 - SB2 - Planning Grant $ (37,027.27) $ - $ (4,661.94) $ (41,689.21) Fund: 376 - Downtown Streetscape $ (31,930.90) $ - $ (22,391.40) $ (54,322.30) Fund: 378 - Zoning Code Update $ (28,560.75) $ 28,208.95 $ (772.69) $ (1,124.49) Fund Type: 1.24 - Special Rev Funds - Restricted$ 1,067,560.93 $ 33,827.21 $ (45,492.25) $ 1,055,895.89 Fund Type: 1.34 - Capital Projects - Restricted
Fund: 300 - GF Capital Projects $ (122.02) $ - $ (12,777.50) $ (12,899.52) Fund: 358 - CDBG Pavement $ (230,666.52) $ - $ (88,201.12) $ (318,867.64) Fund Type: 1.34 - Capital Projects - Restricted $ (230,788.54) $ - $ (100,978.62) $ (331,767.16) Fund Type: 2.11 - Enterprise Funds
Fund: 560 - Sewer $ 1,782,058.63 $ 111,316.31 $ (98,777.76) $ 1,794,597.18 Fund: 561 - Sewer Liftstations $ 674,794.68 $ 17,603.81 $ (26,333.25) $ 666,065.24 Fund: 563 - Wastewater Treatment Plant $ 1,254,666.90 $ 51,290.52 $ - 1,305,957.42 $ Fund: 564 - Sewer Connections $ (74,509.67) $ - $ - $ (74,509.67) Fund: 575 - WWTP Construction Grant $ (740,901.97) $ - (778,786.29) $ $ (1,519,688.26) Fund: 577 - Capital Projects $ (122.01) $ - $ (7,107.50) $ (7,229.51) Fund: 590 - Sewer Consolidation Planning $ (8,955.95) $ - $ (12,606.21) $ (21,562.16) Fund Type: 2.11 - Enterprise Funds - Unassigned$ 2,887,030.61 $ 180,210.64 $ (923,611.01) $ 2,143,630.24 Fund Type: 9.0 - CLEARING ACCOUNT
Fund: 998 - PAYROLL CLEARING FUND $ 405.77 $ 1,564.16 $ 1,969.93 Fund Type: 9.0 - CLEARING ACCOUNT $ 405.77 $ 1,564.16 $ - $ 1,969.93 Grand Totals: $ 8,451,669.07 $ 472,696.63 $ (1,212,426.04) $ 7,711,939.66 City of Colfax
Cash Transactions Report - November 2023
Item 3E 81

CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
US BANK Page: 1
Time: 4:28 pm
Date: 01/05/2024
Void/Stop
Date
Reconcile
Date
US BANK Checks
59997 11/05/23 Reconciled 11/30/23 03141 CALPERS HEALTH PREMIUMS NOV 2023 14,895.30 59998 11/01/23 Reconciled 11/30/23 1161 49ER WATER SERVICES WWTP MONTHLY TESTING SEPT 2023 603.00 59999 11/01/23 Reconciled 11/30/23 01500 ANDERSON'S SIERRA WWTP PVC 105.62 60000 11/01/23 Reconciled 11/30/23 3475 CLARK PEST CONTROL PEST CONTROL 508.00 COMMERCIAL PUMP 7,882.74

SERVICE, INC
60001 11/01/23 Reconciled 11/30/23 03562 LS PUMP RPR
60002 11/01/23 Reconciled 11/30/23 04234 DE LAGE LANDEN FINANCIAL COPY MACH LEASE NOV 2023 472.79 60003 11/01/23 Reconciled 11/30/23 04301 DNF, INC. SKID STEER CHAINS 646.87 FRONTIER 249.14

COMMUNICATIONS
60004 11/01/23 Reconciled 11/30/23 06278 WWTP INTERNET
60005 11/01/23 Reconciled 11/30/23 7223 GEOCON CONSULTANTS INC. I&I PROJECT SEPT 2023 1,192.50 60006 11/01/23 Reconciled 11/30/23 14859 GHD INC. CDBG ENG SEPT 2023 80,672.44 60007 11/01/23 Reconciled 11/30/23 14859 GHD INC. ENG SVCS SEPT 2023 16,530.00 60008 11/01/23 Reconciled 11/30/23 14859 GHD INC. ENG SVCS AUG 2023 19,997.50 60009 11/01/23 Reconciled 11/30/23 07570 GRAINGER WWTP SUPPLIES 93.52 HILL BROTHERS CHEMICAL 5,730.45
CO.
60010 11/01/23 Reconciled 11/30/23 08159 WWTP CHEMICALS 60011 11/01/23 Reconciled 11/30/23 08170 HILLS FLAT LUMBER CO SUPPLIES 636.80 HOME DEPOT CREDIT 438.88

SERVICES
60012 11/01/23 Reconciled 11/30/23 08501 CULVER ST RPR RENTAL 60013 11/01/23 Reconciled 11/30/23 08660 HUNT AND SONS, INC. FUEL 1,079.71 60014 11/01/23 Reconciled 11/30/23 8661 HYDROCOMPLIANCE WWTP CONST GRANT OCT 2023 3,200.00 NORTHERN CALIFORNIA 957.58
GLOVE
60015 11/01/23 Reconciled 11/30/23 14356 PW RAIN GEAR
PLACER COUNTY EXECUTIVE 19,891.88
OFFICE
60016 11/01/23 Reconciled 11/30/23 16161 Q1 23/24 FIRE SVCS US BANK CORPORATE PMT 4,340.47
SYSTEM
60017 11/01/23 Reconciled 11/30/23 21560 SUPPLIES
60018 11/01/23 Reconciled 11/30/23 21500 USA BLUE BOOK, INC GATE VALVE KEY 236.08 60019 11/01/23 Reconciled 11/30/23 23169 WAVE BUSINESS SOLUTIONS CITY HALL INTERNET 159.90 60020 11/01/23 Reconciled 11/30/23 23169 WAVE BUSINESS SOLUTIONS DEPOT PHONE 18.77 60021 11/01/23 Reconciled 11/30/23 23450 WINNER CHEVROLET, INC. WWTP TRUCK MAINT 102.06 60022 11/01/23 Reconciled 11/30/23 23451 WOOD RODGERS SEWER CONSOLIDATION APP SEPT 10,068.04 60023 11/01/23 Reconciled 11/30/23 23451 WOOD RODGERS SSMP UPDATE SEPT 2023 237.50 60024 11/01/23 Reconciled 11/30/23 23451 WOOD RODGERS WWTP CONST GRANT SEPT 2023 10,022.25 ALHAMBRA & SIERRA 57.47

SPRINGS
60025 11/16/23 Reconciled 11/30/23 01414 WATER
60026 11/16/23 Reconciled 11/30/23 01500 ANDERSON'S SIERRA WWTP SUPPLIES 296.20 60027 11/16/23 Reconciled 11/30/23 01766 AT&T MOBILITY CITY CELL PHONES 907.27 60028 11/16/23 Reconciled 11/30/23 02054 BANNER BANK I&I MITIGATION CONST OCT RETEN 45,004.79 60029 11/16/23 Reconciled 11/30/23 2819 BIG BRAND TIRE & SERVICE WWTP TRUCK RPR 3,515.43 BUREAU VERITAS NORTH 6,570.00

AMERICA
60030 11/16/23 Reconciled 11/30/23 02901 BLDG OFFICIAL OCT 2023 60031 11/16/23 Reconciled 11/30/23 8062 CATHERINE HANSFORD SEWER RATE STUDY 1,612.50 60032 11/16/23 Reconciled 11/30/23 03401 CHOICE BUILDER PREMIUMS DEC 2023 780.48 60033 11/16/23 Reconciled 11/30/23 3425 CINTAS UNIFORM SVCS OCT 2023 443.72 60034 11/16/23 Reconciled 11/30/23 3475 CLARK PEST CONTROL PEST CONTROL NOV 2023 508.00 60035 11/16/23 Reconciled 11/30/23 3494 COLANTUONO, HIGHSMITH & LEGAL MATTER OCT 2023 3,480.00 60036 11/16/23 Reconciled 11/30/23 03502 COLFAX AREA CHAMBER OF FRIDAY MARKETS REFUND 100.00 60037 11/16/23 Reconciled 11/30/23 03502 COLFAX AREA CHAMBER OF WINTERFEST DONATION 7,000.00 COLFAX FARM AND COUNTRY 642.96
STORE
60038 11/16/23 Reconciled 11/30/23 06730 STRAW
60039 11/16/23 Reconciled 12/31/23 07591 COLFAX GREEN MACHINE TRUNK OR TREAT EVENT REFUND 100.00 60040 11/16/23 Reconciled 12/31/23 04592 DACOMM WWTP INTERNET 103.45 EOSI - ENVIRONMENT 9,088.90

OPERATING
60041 11/16/23 Reconciled 11/30/23 05221 CHEMICALS
GOLD MOUNTAIN 1,545.38

CALIFORNIA
60042 11/16/23 Reconciled 11/30/23 07460 PUBLIC NOTICE ZONING/GEN PLAN 60043 11/16/23 Reconciled 11/30/23 08660 HUNT AND SONS, INC. FUEL 846.41 MANAGEMENT ADVISORY 1,271.25

SERVICES
60044 11/16/23 Reconciled 11/30/23 13191 COLFAX NET PLANNING OCT 2023 Item 3E 82

CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
US BANK Page: 2
Time: 4:28 pm
Date: 01/05/2024
Void/Stop
Date
Reconcile
Date
US BANK Checks
60045 11/16/23 Reconciled 11/30/23 13196 MARSHALL, BEVERLI INTERVIEW REIMBURSEMENT 1,226.90 60046 11/16/23 Reconciled 11/30/23 13239 MCGUIRE & HESTER I&I CONST OCT 2023 405,043.12 METROPOLITAN 1,000.00

TRANSPORTATION
60047 11/16/23 Reconciled 11/30/23 13261 STREETSAVER SUB 23/24 60048 11/16/23 Reconciled 11/30/23 013278 MNJ ADVISORS INC. CITY MANAGER OCT 2023 18,661.95 60049 11/16/23 Reconciled 11/30/23 18400 NAPA AUTO PARTS SUPPLIES 19.59 NEXGEN ASSET 8,500.00

MANAGEMENT
60050 11/16/23 Reconciled 11/30/23 14307 ASSET MAN SOFTWARE 23/24 PELLETREAU, ALDERSON & 12,237.34
CABRAL
60051 11/16/23 Reconciled 11/30/23 16011(2) LEGAL SVCS OCT 2023 60052 11/16/23 Reconciled 11/30/23 16035 PG&E ELECTRICITY 20,968.95 PLACER COUNTY AIR 1,008.00

POLLUTION
60053 11/16/23 Reconciled 11/30/23 16140 PER CAPITA ASS 23/24 60054 11/16/23 Reconciled 12/31/23 16759 PRESTIGE CHEMICALS LAWN CARE SUPPLIES 705.89 60055 11/16/23 Reconciled 11/30/23 16821 PSOMAS WWTP CONST GRANT INSP SEPT 23 55,133.00 60056 11/16/23 Reconciled 11/30/23 16040 PURCHASE POWER POSTAGE REFILL 520.14 60057 11/16/23 Reconciled 12/31/23 19037 SAFE SIDE SECURITY WWTP SECURITY 95.00 60058 11/16/23 Reconciled 12/31/23 19037 SAFE SIDE SECURITY KEY FOB PROGRAMMING 325.00 60059 11/16/23 Reconciled 12/31/23 19037 SAFE SIDE SECURITY BATTERY SWAP 375.00 60060 11/16/23 Reconciled 12/31/23 19037 SAFE SIDE SECURITY CORP YARD SECURITY NOV 2023 155.00 60061 11/16/23 Reconciled 11/30/23 19575 SHANNA STAHL SCORE MEETING MILEAGE 179.47 60062 11/16/23 Reconciled 11/30/23 01790 SIERRA OFFICE PRODUCTS OFFICE SUPPLIES 169.53 60063 11/16/23 Reconciled 11/30/23 19743 WILLIAM STOCKWIN COLFAX CONN EDITING NOV 2023 300.00 STS AUTOMATION 2,957.47

INCORPORATED
60064 11/16/23 Reconciled 11/30/23 19762 PROBE INSTALL/VALVE RPR VAN GRONINGEN & 11,182.50

ASSOCIATES
60065 11/16/23 Reconciled 11/30/23 22106 FINANCIAL SVCS OCT 2023 60066 11/16/23 Reconciled 11/30/23 22134 VISION QUEST TECH SUPPORT DEC 2023 3,800.00 VULCAN MATERIALS 151.17

COMPANY
60067 11/16/23 Reconciled 11/30/23 22240 ASPHALT
60068 11/16/23 Reconciled 11/30/23 23169 WAVE BUSINESS SOLUTIONS CITY HALL PHONE 215.63 60069 11/16/23 Reconciled 11/30/23 23301 WESTERN PLACER WASTE SLUDGE REMOVAL OCT 2023 799.96 60070 11/29/23 Reconciled 12/31/23 01448 AMERIGAS - COLFAX SHERIFF PROPANE 150.40 60071 11/29/23 Reconciled 12/31/23 01448 AMERIGAS - COLFAX DEPOT PROPANE 551.46 60072 11/29/23 Reconciled 12/31/23 01448 AMERIGAS - COLFAX DEPOT PROPANE 199.33 60073 11/29/23 Reconciled 12/31/23 3469 CIVIC PLUS MUNICODE SUPPORT 350.00 60074 11/29/23 Reconciled 12/31/23 3468 CIVICWELL DOWNTOWN STREETSCAPE SEPT 22,391.40 60075 11/29/23 Reconciled 11/30/23 3555 COLFAX RAILROAD DAYS EVENT DEPOSIT REFUND 100.00 60076 11/29/23 Reconciled 12/31/23 3574 CONVERGEONE, INC CITY PHONE PROGRAMMING 140.00 60077 11/29/23 Reconciled 12/31/23 04234 DE LAGE LANDEN FINANCIAL COPY MACH LEASE DEC 2023 472.79 FRONTIER 291.45

COMMUNICATIONS
60078 11/29/23 Reconciled 12/31/23 06278 WWTP PHONE
GOLD MOUNTAIN 1,733.68

CALIFORNIA
60079 11/29/23 Reconciled 12/31/23 07460 CDBG NOTICE TO BIDDERS 60080 11/29/23 Reconciled 12/31/23 07570 GRAINGER HOSE 193.19 60081 11/29/23 Reconciled 12/31/23 07570 GRAINGER WWTP SUPPLIES 193.19 60082 11/29/23 Reconciled 12/31/23 07570 GRAINGER WWTP SUPPLIES 349.17 60083 11/29/23 Reconciled 12/31/23 08660 HUNT AND SONS, INC. FUEL 1,161.11 60084 11/29/23 Reconciled 12/31/23 8661 HYDROCOMPLIANCE WWTP CONST GRANT QSP SVC 3,200.00 60085 11/29/23 Reconciled 12/31/23 23101 LARRY WALKER ASSOCIATES NPDES PERMIT ASS OCT 2023 632.50 LAWRENCE & ASSOCIATES 2,389.85
INC
60086 11/29/23 Reconciled 12/31/23 12180 LANDFILL MONITORING OCT 2023 NORTHERN CALIFORNIA 159.59
GLOVE
60087 11/29/23 Reconciled 12/31/23 14356 PPE PW
NORTHERN CALIFORNIA 36.24
GLOVE
60088 11/29/23 Reconciled 12/31/23 14356 PW SUPPLIES
60089 11/29/23 Reconciled 12/31/23 16300 PCWA -PLACER COUNTY WATER 2,609.92 PLACER COUNTY 3,889.25

CLERK-RECORDER
60090 11/29/23 Reconciled 12/31/23 16162 GEN PLAN UPDATE NOD FILING 60091 11/29/23 Reconciled 12/31/23 16500 PLACER OPERATIONAL AREA CIVIL DEFENSE 23/24 223.78 60092 11/29/23 Reconciled 12/31/23 16821 PSOMAS WWTP CONST MAN OCT 2023 46,742.75 Item 3E 83

CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
US BANK Page: 3
Time: 4:28 pm
Date: 01/05/2024
Void/Stop
Date
Reconcile
Date
US BANK Checks
60093 11/29/23 Reconciled 12/31/23 19474 SIMPSON & SIMPSON METAL BLDG GRADING/FOOTINGS 19,885.00 60094 11/29/23 Reconciled 12/31/23 19786 SUNRUN CANCELLED PERMIT REFUND 1,394.65 60095 11/29/23 Reconciled 12/31/23 21500 USA BLUE BOOK, INC LAB SUPPLIES 876.22 60096 11/29/23 Reconciled 12/31/23 23169 WAVE BUSINESS SOLUTIONS CORP YARD INTERNET 67.87 60097 11/29/23 Reconciled 12/31/23 23169 WAVE BUSINESS SOLUTIONS CITY HALL INTERNET 159.90 60098 11/29/23 Reconciled 12/31/23 18883 WAXIE SANITARY SUPPLY PW SUPPLIES 455.37 60099 11/29/23 Reconciled 12/31/23 23453 WM LYLES WWTP CONST NOV 2023 197,800.38 60100 11/29/23 Reconciled 12/31/23 06146 FAST SIGNS WINTERFEST BANNER 532.12 Total Checks: 104 Checks Total (excluding void checks): 1,139,907.17 Total Payments: 104 Bank Total (excluding void checks): 1,139,907.17 Total Payments: 104 Grand Total (excluding void checks): 1,139,907.17 Item 3E 84
City of Colfax Cash Summary – December 2023
Staff Report January 24, 2024
Staff Report to City Council
FOR THE JANUARY 24, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Shanna Stahl – Administrative Services Officer Subject: Cash Summary – December 2023
Budget Impact Overview:

N/A: √ Funded: Un-funded: Amount: Fund(s):

The attached reports reflect an overview of the financial transactions of the City of Colfax in December 2023.

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 2023 (twomonth lag). o Capital project reimbursement from HCD for the General Plan Update and DOT for the Downtown Connectivity and Main Street Improvement Plan
• December expenditures included:
o Approved capital project expenditures – expenditures on WWTP Construction Grant and other grant funded projects.
o Second quarter of fiscal year 2023/2024 Sheriff contract payment • Negative cash fund balances at the end of December are due to the timing of funding allocations and reimbursements:
o Fund 250 – Streets – Roads/Transportation. These expenses are funded by annual Transportation funding through Placer County Transportation Agency (PCTPA), transfer of City Gas Tax revenues, and a General Fund allocation. PCTPA has just initiated the claim process for the current fiscal year and Colfax has submitted fund requests in November. o Fund 358 – CDBG Road Rehabilitation. This is a reimbursable grant – the final funding of the grant was awarded in November. CDBG has approved the start date of expenditures. The City will begin the reimbursement request process as soon as possible.

RECOMMENDED ACTION: Accept and File.

Item 3F 85
City of Colfax Cash Summary – December 2023
Staff Report January 24, 2024
o Fund 367 – SB2 Planning Grant – this is a reimbursable grant. Reimbursement requests are submitted on a quarterly basis. Partial reimbursement was received in December. Project funding and final reporting in January 2024.
o Fund 376 – Downtown Streetscape – This project is primarily (89%) funded with grant funds on a reimbursement basis. Reimbursement requests are expected to be submitted on a quarterly basis.

Partial reimbursement was received in November. Project funding and final reporting in January 2024.
o Fund 575 – WWTP Construction Grant. This is a reimbursable grant. Reimbursement requests are scheduled to be submitted at least quarterly.
o Fund 577 – Capital Projects. This is the new project for the installation of a metal storage building at the Wastewater Treatment Plant. The project is slated to be funded by Fund 564 – Sewer Connection Fees. Funds to be transferred at project completion. o Fund 590 – Sewer Consolidation Planning Grant. This is a reimbursable grant – reimbursement requests are scheduled to be submitted quarterly upon final award of application grant. • Anticipated revenues/expenditures for January include:
o Revenues
 Allocation for Sales Tax revenues reported/paid to the State for the month of November 2023 (two-month lag).
 Capital project reimbursements.
 Property Tax allocation for November 2023.
o Expenditures
 Approved capital project expenditures. We anticipate continued large expenditures for the Wastewater Treatment Plant Construction project as the I/I Mitigation and Algae Reduction phases continue construction.
 Ongoing monthly operating expenses
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
Item 3F 86
Prev Yr Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Cash Balance FY2023-24 $3,911 $3,785 $3,834 $3,638 $3,789 $3,911 $3,791 Cash Balance FY2022-23 $3,418 $3,412 $3,568 $3,396 $3,451 $3,644 $3,560 $3,935 $4,039 $3,819 $3,765 $4,087 $3,911 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 *Reserves (Ops, Cap, Pen) $1,095 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 $1,145 Budget FY2023-24 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $3,911 $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
City of Colfax - December 2023
General Fund Reserved Cash Analysis
(Dollars in Thousands)
Fiscal Year 2023-24 >>
Item 3F 87
Balance
11/30/23 Revenues In* Expenses Out* Transfers Balance 12/31/23 US Bank $ 114,880.04 $ 277,413.50 $ (907,580.68) $ 700,000.00 $ 184,712.86 LAIF $ 7,597,059.62 $ - $ (700,000.00) $ 6,897,059.62
Total Cash - General Ledger $ 7,711,939.66 $ 277,413.50 $ (907,580.68) $ - $ 7,081,772.48 Petty Cash (In Safe) $ 300.00 $ 300.00
Total Cash $ 7,712,239.66 $ 277,413.50 $ (907,580.68) $ - $ 7,082,072.48 Change in Cash Account Balance - Total $ (630,167.18)
Attached Reports:

1. Cash Transactions Report (By Individual Fund)

2. Check Register Report (Accounts Payable) $ (904,530.93) Cash Receipts $ 207,131.64
Payroll Checks and Tax Deposits $ (62,175.06)
Utility Billings - Receipts $ 129,407.17
LAIF Interest $ -
Void CK - Reissued July Check $ -
$ (630,167.18) $ -
*Does not include transfers between funds
Prepared by:

Shanna Stahl, Administrative Services Officer
Reviewed by:

Mike Luken, Interim City Manager
City of Colfax
Cash Summary
December 31, 2023
Item 3F 88
Beginning
Balance
Debit
Revenues
Credit
(Expenditures)
Ending
Balance
Fund Type: 1.11 - General Fund - Unassigned
Fund: 100 - General Fund $ 3,701,753.31 $ 112,864.30 $ (237,979.07) $ 3,576,638.54 Fund: 120 - Land Development Fees $ 194,954.25 $ 9,921.80 $ (4,467.95) $ 200,408.10 Fund: 200 - Cannabis Application $ 14,607.91 $ - $ - $ 14,607.91 Fund Type: 1.11 - General Fund - Unassigned $ 3,911,315.47 $ 122,786.10 $ (242,447.02) $ 3,791,654.55 Fund Type: 1.14 - General Fund - Restricted
Fund: 205 - Escrow Funds $ 39,737.00 $ - $ - $ 39,737.00 Fund: 571 - AB939 Landfill Diversion $ 23,317.26 $ - $ - $ 23,317.26 Fund: 572 - Landfill Post Closure Maintenance 867,841.03 $ $ - $ (14,221.16) $ 853,619.87 Fund Type: 1.14 - General Fund - Restricted $ 930,895.29 $ - $ (14,221.16) $ 916,674.13 Fund Type: 1.24 - Special Rev Funds - Restricted
Fund: 210 - Mitigation Fees - Roads $ 146,045.17 $ - $ - 146,045.17 $ Fund: 211 - Mitigation Fees - Drainage $ 5,581.98 $ - $ - $ 5,581.98 Fund: 212 - Mitigation Fees - Trails $ 77,544.77 $ - $ - $ 77,544.77 Fund: 213 - Mitigation Fees - Parks/Rec $ 192,703.15 $ - $ - 192,703.15 $ Fund: 214 - Mitigation Fees - City Bldgs $ 104,755.84 $ - $ - 104,755.84 $ Fund: 215 - Mitigation Fees - Vehicles $ 22,878.50 $ - $ - $ 22,878.50 Fund: 217 - Mitigation Fees - DT Parking $ 35,297.38 $ - $ - $ 35,297.38 Fund: 218 - Support Law Enforcement $ 74,673.76 $ 19,509.91 $ (111,158.96) $ (16,975.29) Fund: 244 - CDBG Program Inc - ME Lending $ 503.08 $ - $ - $ 503.08 Fund: 250 - Streets - Roads/Transportation $ (107,248.10) $ - $ (14,230.57) $ (121,478.67) Fund: 253 - Gas Taxes $ 16,640.21 $ 5,354.15 $ (4,421.65) $ 17,572.71 Fund: 257 - Street /Road - Transit Capital $ 48,346.04 $ - $ - $ 48,346.04 Fund: 258 - Road Maintenance - SB1/RSTBG $ 235,495.06 $ 3,635.40 $ - 239,130.46 $ Fund: 270 - Beverage Container Recycling $ 19,766.28 $ - $ - $ 19,766.28 Fund: 280 - Oil Recycling $ 3,897.48 $ - $ - $ 3,897.48 Fund: 290 - SB1383 Implementation Grant $ 19,229.33 $ - $ (1,800.00) $ 17,429.33 Fund: 292 - Fire Department Capital Funds $ 96,515.66 $ - $ - $ 96,515.66 Fund: 342 - Fire Construction - Mitigation $ 80,202.91 $ - $ - $ 80,202.91 Fund: 343 - Recreation Construction $ 80,203.39 $ - $ - $ 80,203.39 Fund: 367 - SB2 - Planning Grant $ (41,689.21) $ 23,968.07 $ (668.39) $ (18,389.53) Fund: 376 - Downtown Streetscape $ (54,322.30) $ 30,505.60 $ (22,291.55) $ (46,108.25) Fund: 378 - Zoning Code Update $ (1,124.49) $ - $ (1,678.22) $ (2,802.71) Fund Type: 1.24 - Special Rev Funds - Restricted$ 1,055,895.89 $ 82,973.13 $ (156,249.34) $ 982,619.68 Fund Type: 1.34 - Capital Projects - Restricted
Fund: 300 - GF Capital Projects $ (12,899.52) $ - $ - $ (12,899.52) Fund: 358 - CDBG Pavement $ (318,867.64) $ - $ (15,096.20) $ (333,963.84) Fund Type: 1.34 - Capital Projects - Restricted $ (331,767.16) $ - $ (15,096.20) $ (346,863.36) Fund Type: 2.11 - Enterprise Funds
Fund: 560 - Sewer $ 1,794,597.18 $ 83,489.80 $ (104,756.67) $ 1,773,330.31 Fund: 561 - Sewer Liftstations $ 666,065.24 $ 13,069.07 $ (20,379.46) $ 658,754.85 Fund: 563 - Wastewater Treatment Plant $ 1,305,957.42 $ 35,706.30 $ (327.39) $ 1,341,336.33 Fund: 564 - Sewer Connections $ (74,509.67) $ - $ - $ (74,509.67) Fund: 575 - WWTP Construction Grant $ (1,519,688.26) $ - (415,661.00) $ $ (1,935,349.26) Fund: 577 - Capital Projects $ (7,229.51) $ - $ - $ (7,229.51) Fund: 590 - Sewer Consolidation Planning $ (21,562.16) $ - $ (617.50) $ (22,179.66) Fund Type: 2.11 - Enterprise Funds - Unassigned$ 2,143,630.24 $ 132,265.17 $ (541,742.02) $ 1,734,153.39 Fund Type: 9.0 - CLEARING ACCOUNT
Fund: 998 - PAYROLL CLEARING FUND $ 1,969.93 $ 1,564.16 $ 3,534.09 Fund Type: 9.0 - CLEARING ACCOUNT $ 1,969.93 $ 1,564.16 $ - $ 3,534.09 Grand Totals: $ 7,711,939.66 $ 339,588.56 $ (969,755.74) $ 7,081,772.48 City of Colfax
Cash Transactions Report - December 2023
Item 3F 89

CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
US BANK Page: 1
Time: 9:45 am
Date: 01/08/2024
Void/Stop
Date
Reconcile
Date
US BANK Checks
60101 12/05/23 Reconciled 12/31/23 03141 CALPERS HEALTH PREMIUMS DEC 2023 13,978.64 60102 12/08/23 Reconciled 12/31/23 1161 49ER WATER SERVICES QUARTERLY LINER TESTING 2,910.00 60103 12/08/23 Reconciled 12/31/23 01448 AMERIGAS - COLFAX DEPOT PROPANE 120.32 60104 12/08/23 Reconciled 12/31/23 01766 AT&T MOBILITY CITY CELL PHONES 911.11 60105 12/08/23 Reconciled 12/31/23 01794 AUBURN SAW INC PW BLOWER/TRIMMER 1,297.70 60106 12/08/23 Reconciled 12/31/23 02054 BANNER BANK I&I NOV 2023 CONST RETENTION 40,560.60 60107 12/08/23 Reconciled 12/31/23 02830 BLUE RIBBON SEPTIC LLC LS CLEANING 1,875.00 60108 12/08/23 Printed 8062 CATHERINE HANSFORD SEWER RATE STUDY 1,730.86 CHRIS CUT TREE SERVICE 2,500.00
LLC
60109 12/08/23 Reconciled 12/31/23 03402 CULVER ST TREE TRIMMING 60110 12/08/23 Reconciled 12/31/23 07200 GENERAL PLUMBING SUPPLY ROY TOMS IRRIGATION 30.41 60111 12/08/23 Reconciled 12/31/23 07200 GENERAL PLUMBING SUPPLY ROY TOMS IRRIGATION 19.17 60112 12/08/23 Reconciled 12/31/23 7223 GEOCON CONSULTANTS INC. WWTP I&I CONST MAN OCT 2023 825.00 60113 12/08/23 Reconciled 12/31/23 14859 GHD INC. ENG SVCS OCT 2023 16,292.50 60114 12/08/23 Reconciled 12/31/23 14859 GHD INC. CDBG DESIGN NOV 2023 14,526.20 60115 12/08/23 Reconciled 12/31/23 07570 GRAINGER ICE MELT 420.88 60116 12/08/23 Reconciled 12/31/23 08170 HILLS FLAT LUMBER CO STMT 11/25/23 829.37 60117 12/08/23 Reconciled 12/31/23 13239 MCGUIRE & HESTER I&I CONST NOV 2023 365,045.40 60118 12/08/23 Reconciled 12/31/23 013278 MNJ ADVISORS INC. INTERIM CITY MANAGER 26,258.49 60119 12/08/23 Reconciled 12/31/23 18400 NAPA AUTO PARTS SUPPLIES 115.99 NORTHERN CALIFORNIA 2,148.56
GLOVE
60120 12/08/23 Reconciled 12/31/23 14356 WORK GLOVES
NORTHERN CALIFORNIA 108.75
GLOVE
60121 12/08/23 Reconciled 12/31/23 14356 PW GLOVES
PELLETREAU, ALDERSON & 14,463.35
CABRAL
60122 12/08/23 Reconciled 12/31/23 16011(2) LEGAL SVCS NOV 2023 60123 12/08/23 Reconciled 12/31/23 16751 PFADT, INC. DEPOT LIGHT RPR 125.00 60124 12/08/23 Reconciled 12/31/23 16040A PITNEY BOWES W2 FY 23/24 POSTAGE MACH LEASE 167.84 PLACER COUNTY SHERIFF 230,372.00
DEPT.
60125 12/08/23 Reconciled 12/31/23 16200 SHERIFF CONTRACT FY 23/24 Q2 60126 12/08/23 Reconciled 12/31/23 17951 R3 CONSULTING GROUP SB1383 GRANT APP NOV 2023 1,800.00 60127 12/08/23 Reconciled 12/31/23 19037 SAFE SIDE SECURITY CORP YARD SECURITY DEC 2023 155.00 60128 12/08/23 Printed 19037 SAFE SIDE SECURITY WWTP SECURITY DEC 2023 95.00 SECURE RECORD 75.00

MANAGEMENT
60129 12/08/23 Reconciled 12/31/23 19193 SHREDDING Q2 FY 23/24 60130 12/08/23 Reconciled 12/31/23 01790 SIERRA OFFICE PRODUCTS OFFICE SUPPLIES 371.93 60131 12/08/23 Reconciled 12/31/23 19474 SIMPSON & SIMPSON EMERGENCY PUMP RPR 2,600.00 60132 12/08/23 Reconciled 12/31/23 19743 WILLIAM STOCKWIN COLFAX CONN DEC 2023 300.00 60133 12/08/23 Reconciled 12/31/23 19696 SWRCB LS ANNUAL PERMIT FEE 22,337.00 60134 12/08/23 Printed 20538 TROJAN TECHNOLOGIES WWTP SUPPLIES 71.16 60135 12/08/23 Reconciled 12/31/23 21452 EMMANUEL URSU PLANNING SVCS OCT 2023 8,317.68 US BANK CORPORATE PMT 911.50
SYSTEM
60136 12/08/23 Reconciled 12/31/23 21560 SUPPLIES
VAN GRONINGEN & 7,166.25

ASSOCIATES
60137 12/08/23 Reconciled 12/31/23 22106 FINANCIAL SVCS NOV 2023 60138 12/08/23 Reconciled 12/31/23 22134 VISION QUEST TECH SUPPORT SVCS JAN 2024 3,800.00 60139 12/08/23 Reconciled 12/31/23 23169 WAVE BUSINESS SOLUTIONS DEPOT PHONE 18.77 ALHAMBRA & SIERRA 43.48

SPRINGS
60140 12/28/23 Printed 01414 WATER
60141 12/28/23 Printed 01440 AMERICAN EAGLE ROOFING REFUND OF UNUSED BLDG PERMIT 388.92 60142 12/28/23 Printed 01448 AMERIGAS - COLFAX CITY HALL PROPANE 1,082.74 60143 12/28/23 Printed 01448 AMERIGAS - COLFAX DEPOT PROPANE 215.53 60144 12/28/23 Printed 01448 AMERIGAS - COLFAX DEPOT PROPANE 193.95 60145 12/28/23 Printed 02511 BETTER EARTH ELECTRIC BLDG PERMIT REFUND 164.52 BUREAU VERITAS NORTH 5,760.00

AMERICA
60146 12/28/23 Printed 02901 BLDG OFFICIAL NOV 2023
60147 12/28/23 Printed 03401 CHOICE BUILDER PREMIUMS JAN 2024 816.02 60148 12/28/23 Printed 3425 CINTAS UNIFORM SVCS NOV 2023 612.87 60149 12/28/23 Printed 3468 CIVICWELL DOWNTOWN STREETSCAPE OCT 22,291.55 2023
Item 3F 90

CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:

Vendor
Number Vendor Name Check Description
US BANK Page: 2
Time: 9:45 am
Date: 01/08/2024
Void/Stop
Date
Reconcile
Date
US BANK Checks
60150 12/28/23 Printed 3475 CLARK PEST CONTROL PEST CONTROL DEC 2023 508.00 CLEAR PATH LAND 6,000.00

EVOLVEMENT,
60151 12/28/23 Printed 03482 I&I EASEMENTS WWTP CONST
GRANT
60152 12/28/23 Printed 3494 COLANTUONO, HIGHSMITH & LEGAL MATTER NOV 2023 4,970.95 60153 12/28/23 Printed 03502 COLFAX AREA CHAMBER OF FRIDAY MARKETS EVENT REFUND 100.00 60154 12/28/23 Printed 03502 COLFAX AREA CHAMBER OF WINTERFEST DEPOSIT REFUND 100.00 60155 12/28/23 Printed 07591 COLFAX GREEN MACHINE TRUNK OR TREAT EVENT REFUND 100.00 COLFAX JR FALCONS 100.00

FOOTBALL
60156 12/28/23 Printed 03516 PRACTICE/GAME EVENT REFUND 60157 12/28/23 Printed 04592 DACOMM WWTP INTERNET 103.45 60158 12/28/23 Printed 6203 FENNEMORE CRAIG, PC LEGAL MATTER NOV 2023 1,443.50 GOLD MOUNTAIN 406.00

CALIFORNIA
60159 12/28/23 Printed 07460 ACCTING TECH POSTING
GOLD MOUNTAIN 434.00

CALIFORNIA
60160 12/28/23 Printed 07460 CSR POSTING
GOLD MOUNTAIN 304.51

CALIFORNIA
60161 12/28/23 Printed 07460 ZONING PUBLIC NOTICE
GOLD MOUNTAIN 1,373.71

CALIFORNIA
60162 12/28/23 Printed 07460 ZONING UPDATE PUBLIC NOTICE 60163 12/28/23 Printed 07570 GRAINGER WWTP SUPPLIES 13.73 60164 12/28/23 Printed 07570 GRAINGER WWTP SUPPLIES 119.67 HILL BROTHERS CHEMICAL 8,042.57
CO.
60165 12/28/23 Printed 08159 WWTP CHEMICALS
60166 12/28/23 Printed 09455 INLAND BUSINESS SYSTEMS COPY MACH LEASE Q2 23/24 5.63 60167 12/28/23 Printed 10536 JOHNSON, BRYNTE WINTERFEST PARADE DEP REFUND 100.00 NORTHERN CALIFORNIA 732.05
GLOVE
60168 12/28/23 Printed 14356 PW SUPPLIES
60169 12/28/23 Printed 16300 PCWA -PLACER COUNTY WATER 1,623.53 60170 12/28/23 Printed 16035 PG&E ELECTRICITY 22,455.88 60171 12/28/23 Printed 18010 RACO MANUFACTURING LS 5 ALARM SVCS 450.00 RICHARDSON & COMPANY, 20,300.00
LLP
60172 12/28/23 Printed 18378 AUDITORS FY 22/23
60173 12/28/23 Printed 18496 RIVER CITY RENTALS BANNER BOOM RENTAL 325.00 60174 12/28/23 Printed 19591 SECURITAS TECHNOLOGY DEPOT SECURITY Q3 FY 23/24 167.34 60175 12/28/23 Printed 01426 SHERMAN, CALEB DEPOT LIGHTS 3,082.00 60176 12/28/23 Printed 19396 SIERRA SAFETY COMPANY ST SIGNS 206.83 UV ENGINEERING 12,706.00

SOLUTIONS LLC
60177 12/28/23 Printed 21902 WWTP SUPPLIES
60178 12/28/23 Printed 23169 WAVE BUSINESS SOLUTIONS CITY HALL PHONE 215.63 60179 12/28/23 Printed 23169 WAVE BUSINESS SOLUTIONS CORP YARD INTERNET 67.87 60180 12/28/23 Printed 23301 WESTERN PLACER WASTE SLUDGE REMOVAL NOV 2023 751.07 Total Checks: 80 Checks Total (excluding void checks): 904,530.93 Total Payments: 80 Bank Total (excluding void checks): 904,530.93 Total Payments: 80 Grand Total (excluding void checks): 904,530.93 Item 3F 91
(Page intentionally blank)
92 City of Colfax City of Colfax Audit Report as of
Staff Report January 24, 2024 Fiscal year Ended June 30, 2023 Staff Report to City Council
FOR THE JANUARY 24, 2024 REGULAR CITY COUNCIL MEETING
From: Laurie Van Groningen, Finance Director
Prepared by: Shanna Stahl, Administrative Services Officer Subject: City of Colfax Audit Report as of Fiscal Year Ended June 30, 2023 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. 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.

On May 10, 2023 City Council passed Resolution 13-2023 which approved an agreement with Richardson & Company, LLP to provide annual audit services for up to five years after City staff issued a Request for Proposals (RFP).

Presentation By: Ingrid Sheipline, Managing Partner (Richardson and Co.), Auditor 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 as received June 30, 2023 Audit Reports.

Item 5A 93
CITY OF COLFAX – Audit Report Presentation
Fiscal Year Ended June 30, 2023
Presented by: Ingrid Sheipline, Partner
Richardson & Company, LLP
January 24, 2024
The Fiscal Year ended June 30, 2023 Audit Report includes the following communications required by Generally Accepted Auditing Standards:

Reports issued:

1. Audited Financial Statements with auditor’s 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 Auditor’s Report
Unmodified (clean) opinion
Governmental Activities (Includes General Fund, Special Revenues, Capital projects) revenues exceeded expenses by $168,000 – allocated to fund categories as follows:

Begin Balance FY 2022-2023 End Balance
Investment in Fixed Assets, net of annual depreciation $ 9,967,000 $ (142,000) $ 9,825,000 Restricted Funds –Capital Projects, Mitigation Fees, Etc $ 1,443,000 $ 78,000 $ 1,521,000 Unrestricted – Committed (Operating, Capital, Pension) $ 945,000 $ 150,000 $ 1,095,000 Unrestricted – Assigned (Fire Services) $ 94,000 $ 2,000 $ 96,000 Unrestricted – Non-spendable/Deferred (GASB Adjustments) $ 76,000 $ (15,000) $ 61,000 Unrestricted – Unassigned $ 2,735,000 $ 95,000 $ 2,830,000 Total $ 15,260,000 $ 168,000 $ 15,428,000
General Fund revenues exceeded budget by $330,000 from higher sales taxes and building permits while expenses were less than budget by $227,000 from lower capital outlay costs. This amount is reflected in Unrestricted – Unassigned Fund balance.

General fund unrestricted fund balance of $2,831,000 was 116% of 2023 General Fund expenditures. $1,095,000 was designated by Council for specific purposes.

Business Activities (Sewer Enterprise Fund) Revenues exceed expenses by $1,902,000 – allocated to fund categories as follows:

Begin Balance FY 2022-2023 End Balance
Investment in Fixed Assets, net of annual depreciation $ 11,657,000 $ 1,759,000 $ 13,416,000 Restricted Funds – Debt Reserves, Insurance/Capital funds $ 1,122,000 $ (84,000) $ 1,038,000 Unrestricted – Designated (Operating, Capital) $ 760,000 $ 200,000 $ 960,000 Unrestricted – Unassigned $ 2,010,000 $ 27,000 $ 2,037,000 Total $ 15,549,000 $ 1,902,000 $ 17,451,000
Item 5A 94
CITY OF COLFAX – Audit Report Presentation
Fiscal Year Ended June 30, 2023
Presented by: Ingrid Sheipline, Partner
Richardson & Company, LLP
January 24, 2024
Sewer Enterprise Fund revenues exceeded budget due to grant revenue for WWTP improvement construction while personnel and O&M costs were lower than budget.

Liabilities
Debt of $6,461,000 to fund sewer system upgrades.

Unfunded pension liability—$206,000 due to unusually large investment losses on plan assets.

No retiree health benefits, so no liability recorded.

Footnotes
Note J — Contract commitments for treatment plant projects 2) Internal control and compliance reports
No internal control weaknesses
City complied with laws, regulations material to the financials 3) Governance (required communications) letter
No audit adjustments – good accounting processes
No difficulties in performing the audit and no unusual accounting practices 4) Management letter
No management letter issued
Prior recommendations addressed. No new recommendations. 5) Appropriations limit testing report
No exceptions were noted
Item 5A 95

CITY OF COLFAX, CALIFORNIA
Audited Financial Statements, Supplemental Information
and Compliance Report
June 30, 2023
Item 5A 96

CITY OF COLFAX, CALIFORNIA
Audited Financial Statements, Supplemental Information and Compliance Report June 30, 2023
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 ............................................................................... 44 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions – Miscellaneous Plan (Unaudited) ................................................................... 45

COMBINING STATEMENTS AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES
Non-Major Governmental Funds:

Combining Balance Sheet – Nonmajor Governmental Funds ....................................................................... 46 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ............................................................................................... 48

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 ..................................................................................................................................... 50 Item 5A 97
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Item 5A 98
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
1 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, 2023, 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, 2023, 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.

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.

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.

Item 5A 99
To the City Council
City of Colfax, California
2 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 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.

Item 5A 100
To the City Council
City of Colfax, California
3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Colfax’s basic financial statements. The accompanying 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. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 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 21, 2023 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 21, 2023
Item 5A 101
4 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, 2023. 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 2022-2023 by $32,878,822 (Net Position) which represents an increase of 6% or $2,069,497.

These assets are allocated as follows:
 Net Investment in capital assets - $23,240,385. Total capital additions for the fiscal year were $2,313,835. Retirement of assets accounted for a decrease of $63,312.
 Restricted net position - $2,558,945. 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 - $7,079,492. This is an increase of $458,576 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 $7,837,604 of which $2,004,451 was from capital grants and contributions. Total expenses from all sources were $5,768,107.

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 significant funds. Fund financial statements also provide financial information about Item 5A 102
5 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.

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 Item 5A 103
6 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 $32,878,822 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 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.

Item 5A 104
7 The City’s combined net position for the years ending June 30, 2023 and June 30, 2022 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 increased $245,345 (7%) in fiscal year 2022- 2023 as compared to the previous year. The City had significant increases in operating and capital grants due to increases in project activity. In addition, due to higher interest rates, earnings on investments also had a significant increase. The increases were offset by a decrease in sales and other tax revenues and charge for services. In addition, the City transferred American Rescue Plan Act (ARPA) funds to the business-type activities for an infrastructure project. The City’s governmental activities net position increased by $167,623 (1%) for the fiscal year. Sources of revenue and expenditures are noted in Table 2 below.

Table 1
City of Colfax, Net Position
2023 2022 2023 2022 2023 2022
Assets:

Current assets 6,338,055 $ 5,971,791 $ 3,254,887 $ 2,940,842 $ 9,592,942 $ 8,912,633 $ Non-current and capital assets 10,396,686 10,514,683 21,031,620 19,732,285 31,428,306 30,246,968 Total Assets 16,486,474 16,734,741 24,286,507 22,673,127 41,021,248 39,159,601 Deferred Outflows of Resources
Pension plan 111,406 58,608 118,297 66,356 229,703 124,964 Liabilities:

Current liabilities 372,126 399,315 753,536 717,321 1,125,662 1,116,636 Long-term liabilities 518,636 397,369 6,198,933 6,473,130 6,717,569 6,870,499 Total Liabilities 796,684 890,762 6,952,469 7,190,451 7,843,231 7,987,135 Deferred Inflows of Resources
Pension plan 1,346 - 1,429 - 2,775 -
Leases 526,123 488,105 - 526,123 - 488,105
Net Position:

Net investment in capital assets 9,824,531 9,967,324 13,415,854 11,656,495 23,240,385 21,623,819 Restricted 1,520,631 1,442,533 1,038,314 1,122,057 2,558,945 2,564,590 Unrestricted 4,082,754 3,850,436 2,996,738 2,770,480 7,079,492 6,620,916 Total Net Position $ 15,427,916 $ 15,260,293 $ 17,450,906 $ 15,549,032 $ 32,878,822 $ 30,809,325 Total
Governmental
Activities
Business-type
Activities
Item 5A 105
8 Business-Type Activities
Total revenues for Business-type activities increased $729,501 (21%) in fiscal year 2022- 2023 as compared to the previous year. The increase in revenues was primarily due to the receipt of capital grant funds for a construction project associated with the Wastewater Treatment Plant. Business-type activities increased the City’s net position by $1,901,874 for the fiscal year, an increase of $295,641 over the previous year. The increase in net position is also primarily due to the capital grant funds for the 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
2023 2022 2023 2022 2023 2022
Revenues:

Program revenues:

Charges for services 520,756 $ $ 583,087 $ 2,183,607 $ 2,182,006 $ 2,704,363 $ 2,765,093 Operating grants and
contributions 646,909 257,704 - 646,909 - 257,704
Capital grants and
contributions 283,276 429,778 1,721,175 1,085,387 2,004,451 1,515,165 General revenues:

Sales taxes 1,338,670 1,392,230 - 1,338,670 - 1,392,230 Property taxes 469,943 434,380 - 469,943 - 434,380
Other taxes and fees 460,143 534,921 - 460,143 - 534,921 Earnings on investments 126,976 19,685 72,438 12,791 199,414 32,476 Other (293,583) (344,040) 307,294 274,829 13,711 (69,211) Total revenues 3,553,090 3,307,745 4,284,514 3,555,013 7,837,604 6,862,758 Expenses:

General government 874,840 1,075,686 - - 1,075,686 874,840 Public safety 1,046,236 1,001,357 - 1,046,236 - 1,001,357 Public works 907,929 583,654 - 907,929 - 583,654
Community development 68,260 68,260 - 68,260 - 68,260
Engineering Services 128,522 146,178 - 128,522 - 146,178 Culture and recreation 158,834 121,737 - 158,834 - 121,737 Sewer - 2,316,796 - 1,879,243 2,316,796 1,879,243
Interest on long-term debt - 65,844 - 69,537 65,844 69,537 Total expenses 3,385,467 2,796,026 2,382,640 1,948,780 5,768,107 4,744,806 Change in net position 167,623 511,719 1,901,874 1,606,233 2,069,497 2,117,952 Net position, July 1 15,260,293 14,748,574 15,549,032 13,942,799 30,809,325 28,691,373 Net position, June 30 15,427,916 $ 15,260,293 $ 17,450,906 $ 15,549,032 $ 32,878,822 $ 30,809,325 $ Governmental Business-type
Activities Activities Total
Item 5A 106
9 Fiscal Year 2022-2023
Governmental Activities – Sources of Revenue
(Graphic representation of Table 2 in percentages)
Fiscal Year 2022-2023
Governmental Activities – Program Expenses
(Graphic representation of Table 2 in percentages)
Charges for
services
15%
Operating grants
18%
Capital grants
8%
Sales taxes
38%
Property taxes
13%
Other taxes and
fees
13%
Earnings on
investments
4%
Other
‐8%

SOURCES OF REVENUE
Item 5A 107
10 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, 2023, net capital assets of the governmental activities totaled $9,824,531 and the net capital assets of the business-type activities totaled $19,981,244.

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 $2,313,835 in capital asset improvements and additions during the current fiscal year including the following:
 Purchase of a Bobcat Skid Steer
 Wastewater treatment plant construction project, primarily installation of solar power and inflow/infiltration improvements.
 Replacement of lift station and wastewater equipment
During the fiscal year, the City retired $63,312 of obsolete assets. 2023 2022 2023 2022 2023 2022
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 103,639 104,906 2,520,070 918,235 2,623,709 1,023,141 Building and improvements 10,698,361 10,698,361 25,857,752 25,857,752 36,556,113 36,556,113 Vehicles 170,424 170,424 44,053 44,053 214,477 214,477
Machinery and equipment 329,492 191,327 1,759,810 1,246,737 2,089,302 1,438,064 Furniture and fixtures 12,534 15,084 - - 12,534 15,084
Accumulated depreciation (2,937,316) (2,660,175) (10,335,141) (9,608,933) (13,272,457) (12,269,108) Total Capital Assets, Net $ 9,967,324 9,824,531 $ 19,981,244 $ 18,592,544 $ 29,805,775 $ 28,559,868 $ Total
Governmental
Activities
Business-type
Activities
Item 5A 108
11 Long-Term Debt
At the end of fiscal year 2022-2023, the City had total long-term debts outstanding of $7,204,880, as compared to a total of $7,366,250 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 compensated time off pay, Post Closure expenses related to the City’s closed landfill site, notes payable for the construction of the sewer plant and improvements projects, note payable to developer for sewer infrastructure, and the net pension liability.

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.  Increase in net pension liability – see Note H for additional information.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
In considering the City Budget for fiscal year 2023-2024, 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
2023 2022 2023 2022 2023 2022
Postclosure landfill costs 416,524 $ $ 389,275 $ - $ 416,524 - $ $ 389,275 State loan - restructured - 6,460,761 - 6,831,420 6,460,761 6,831,420 Note payable - 104,629 - 104,629 104,629 104,629
Compensated absences 4,080 16,188 12,552 24,738 16,632 40,926 Net pension liability 100,072 106,262 - 206,334 - -
Total Long-term Debt $ 520,676 $ 405,463 $ 6,684,204 $ 6,960,787 $ 7,204,880 $ 7,366,250 Total
Governmental
Activities
Business-type
Activities
Item 5A 109
12 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.

Item 5A 110

BASIC FINANCIAL STATEMENTS
Item 5A 111

CITY OF COLFAX
Governmental Business-type
Activities Activities Total
ASSETS:

Current assets:

Cash and investments $ 5,673,986 $ 2,741,318 $ 8,415,304 Accounts receivable, net 131,143 187,487 318,630
Due from other governmental agencies 471,842 299,139 770,981 Interest receivable 42,286 26,943 69,229
Leases receivable 15,798 15,798
Prepaid expenses 3,000 3,000
Total current assets 6,338,055 3,254,887 9,592,942
Noncurrent assets:

Restricted cash and investments 1,038,314 1,038,314
Leases receivable, non-current 541,249 541,249
Notes receivable 30,906 12,062 42,968
Capital assets, net
Non-depreciable 1,551,036 2,654,770 4,205,806
Depreciable, net 8,273,495 17,326,474 25,599,969
Total capital assets, net 9,824,531 19,981,244 29,805,775 Total assets 16,734,741 24,286,507 41,021,248
DEFERRED OUTFLOWS OF RESOURCES:

Pension plan 111,406 118,297 229,703
Current liabilities:

Accounts payable 260,356 133,713 394,069
Retention payable 8,366 75,163 83,529
Accrued expenses 8,326 59,389 67,715
Unearned revenue 43,318 43,318
Refundable deposits 49,720 49,720
Current portion of long-term liabilities 2,040 485,271 487,311 Total current liabilities 372,126 753,536 1,125,662
Long-term liabilities:

Loan payable 6,086,395 6,086,395
Postclosure landfill costs 416,524 416,524
Compensated absences 2,040 6,276 8,316
Net pension liability 100,072 106,262 206,334
Total long-term liabilities 518,636 6,198,933 6,717,569 Total liabilities 890,762 6,952,469 7,843,231
DEFERRED INFLOWS OF RESOURCES:

Leases 526,123 526,123
Pension plan 1,346 1,429 2,775
NET POSITION:

Net investment in capital assets 9,824,531 13,415,854 23,240,385 Restricted 1,520,631 1,038,314 2,558,945
Unrestricted 4,082,754 2,996,738 7,079,492
Total net position $ 15,427,916 $ 17,450,906 $ 32,878,822 The accompanying notes are an integral part of these financial statements.

GOVERNMENT-WIDE STATEMENT OF NET POSITION
LIABILITIES:

June 30, 2023
13 Item 5A 112
Operating Capital
Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contributions Activities Activities Total

GOVERNMENTAL ACTIVITIES
General government $ 1,081,821 $ 450,157 44,332$ $ (587,332) $ (587,332) Public safety 1,046,236 69,271 203,071 (773,894) (773,894) Public works 901,794 399,506 $ 283,276 (219,012) (219,012) Community development 68,260 (68,260) (68,260)
Engineering services 128,522 (128,522) (128,522)
Culture and recreation 158,834 1,328 (157,506) (157,506) Total governmental activities 3,385,467 520,756 646,909 283,276 (1,934,526) (1,934,526)

BUSINESS-TYPE ACTIVITIES
Sewer 2,316,796 2,183,607 1,721,175 $ 1,587,986 1,587,986 Interest on long-term debt 65,844 (65,844) (65,844)
Total business-type activities 2,382,640 2,183,607 1,721,175 1,522,142 1,522,142 Total government $ 5,768,107 $ 2,704,363 646,909$ $ 2,004,451 (1,934,526) 1,522,142 (412,384) GENERAL REVENUES:

Taxes:

Sales and use taxes 1,338,670 1,338,670
Property taxes 469,943 469,943
Transient occupancy tax 142,007 142,007
Franchises 71,888 71,888
Gas taxes 57,349 57,349
Mitigation fees 2,080 2,080
Motor vehicle in-lieu 186,819 186,819
Investment income 126,976 72,438 199,414
Transfers (304,294) 304,294 -
Miscellaneous 10,711 3,000 13,711
Total general revenues 2,102,149 379,732 2,481,881
Changes in net position 167,623 1,901,874 2,069,497
Net position, beginning of year 15,260,293 15,549,032 30,809,325 Net position, end of year $ 15,427,916 $ 17,450,906 $ 32,878,822 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, 2023
14 Item 5A 113

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Item 5A 114
Nonmajor
General Governmental
Fund Funds Total
ASSETS:

Cash and investments 4,602,615 $ 1,071,371 $ 5,673,986 $ Accounts receivable, net 2,249 128,894 131,143
Due from other governmental agencies 241,685 230,157 471,842 Interest receivable 34,768 7,518 42,286
Leases receivable 557,047 557,047
Notes receivable 21,267 9,639 30,906
Prepaid items 3,000 3,000
Due from other funds 157,191 157,191
Total assets $ 5,746,467 $ 1,320,934 $ 7,067,401

LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES:

LIABILITIES:

Accounts payable $ 163,600 $ 96,756 $ 260,356
Accrued expenses 5,625 2,701 8,326
Retention payable 8,366 8,366
Unearned revenue 20 23,104 ,214 43,318
Due to other funds 157,191 157,191
Refundable deposits 49,720 49,720
Total liabilities 250,415 276,862 527,277
DEFERRED INFLOWS OF RESOURCES:

Leases 526,123 526,123
Unavailable revenue 143,417 143,417
Total deferred inflows of resources 143,417 526,123 669,540 FUND BALANCES:

Nonspendable 9,639 55,191 64,830
Restricted 893,084 1,034,432 1,927,516
Committed 1,095,000 1,095,000
Assigned 95,634 95,634
Unassigned 2,831,020 (143,416) 2,687,604
Total fund balances 4,969,929 900,655 5,870,584
Total liabilities, deferred inflows of
resources and fund balances $ 5,746,467 $ 1,320,934 $ 7,067,401 The accompanying notes are an integral part of these financial statements.

CITY OF COLFAX

BALANCE SHEET

GOVERNMENTAL FUNDS
June 30, 2023
Major Fund
15 Item 5A 115
Total Governmental Fund Balances $ 5,870,584
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. 111,406
Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds balance sheet. 9,824,531 Certain receivables are not available to pay current period expenditures and, therefore, are reported as deferred inflows of resources in the governmental funds. 143,417 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 (4,080)
Postclosure landfill liability (416,524)
Net pension liability (100,072)
Employee pension differences to be recognized in the future as pension expense are reported as deferred inflows of resources on the statement of net position. (1,346) Net Position of Governmental Activities $ 15,427,916
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, 2023
16 Item 5A 116
Nonmajor Total
General Governmental Governmental
Fund Funds Funds
REVENUES:

Taxes 2,022,508 $ 57,349$ $ 2,079,857
Licenses, fees and permits 155,271 2,260 157,531
Intergovernmental revenues 262,302 824,608 1,086,910
Charges for services 261,149 261,149
Fines, forfeitures and penalties 3,296 3,296
Use of money and property 23,338 211,325 234,663
Other revenue 10,533 10,533
Total revenues 2,926,384 907,555 3,833,939
EXPENDITURES:

Current:

General government 997,328 997,328
Public safety 165,271 880,741 1,046,012
Public works 176,683 533,897 710,580
Engineering services 128,522 128,522
Cultural and recreation 140,605 140,605
Capital outlay 35,169 118,873 154,042
Total expenditures 2,442,752 734,337 3,177,089
Excess of revenues over expenditures 483,632 173,218 656,850 OTHER FINANCING SOURCES (USES):

Transfers in 3,009 213,739 216,748
Transfers out (155,930) (365,112) (521,042)
Total other financing sources (uses) (152,921) (151,373) (304,294) Net change in fund balances 330,711 21,845 352,556
Fund balances, beginning of year 878,810 4,639,218 5,518,028 Fund balances, end of year $ 900,655$ 4,969,929 $ 5,870,584 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, 2023

GOVERNMENTAL FUNDS
Major Fund
17 Item 5A 117
Net Change in Fund Balances - Total Governmental Funds $ 352,556 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 154,042
Depreciation expense (296,835)
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 (27,248)
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 23,445 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 12,107
Change in deferred outflow/inflows of resources and net pension liability/asset (50,444) Change in Net Position of Governmental Activities $ 167,623 The accompanying notes are an integral part of these financial statements.

For the Year Ended June 30, 2023

CITY OF COLFAX

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
18 Item 5A 118
ASSETS:

Current assets:

Cash and cash equivalents $ 2,741,318
Accounts receivable, net 187,487
Due from other governmental agencies 299,139
Interest receivable 26,943
Total current assets 3,254,887
Noncurrent assets:

Restricted cash and cash equivalents 1,038,314
Notes receivable 12,062
Capital assets, net:

Nondepreciable 2,654,770
Depreciable, net 17,326,474
Total capital assets, net 19,981,244
Total assets 24,286,507
DEFERRED OUTFLOWS OF RESOURCES:

Pension plan 118,297
LIABILITIES:

Current liabilities:

Accounts payable 133,713
Retention payable 75,163
Accrued expenses 59,389
Current portion of long-term liabilities 485,271
Total current liabilities 753,536
Long-term liabilities:

Loan payable 6,086,395
Compensated absences 6,276
Net pension liability 106,262
Total long-term liabilities 6,198,933
Total liabilities 6,952,469
DEFERRED INFLOWS OF RESOURCES:

Pension plan 1,429
NET POSITION:

Net investment in capital assets 13,415,854
Restricted 1,038,314
Unrestricted 2,996,738
Total net position $ 17,450,906
The accompanying notes are an integral part of these financial statements.

CITY OF COLFAX

STATEMENT OF NET POSITION

PROPRIETARY FUND - SEWER FUND
June 30, 2023
19 Item 5A 119
OPERATING REVENUES:

Service charges $ 2,140,645
Miscellaneous 42,962
Total operating revenues 2,183,607
OPERATING EXPENSES:

Personnel services 695,223
Operation and maintenance 851,747
Depreciation 769,826
Total operating expenses 2,316,796
Net income from operations (133,189)

NONOPERATING REVENUES (EXPENSES)
Interest income 72,438
Rental income 3,000
Interest expense (65,844)
Total nonoperating revenues (expenses) 9,594
CAPITAL CONTRIBUTIONS:

State grant revenue 1,721,175
Income before transfers 1,597,580
OTHER FINANCING SOURCES (USES):

Transfers in 304,294
Change in net position 1,901,874
Net position, beginning of year 15,549,032
Net position, end of year $ 17,450,906
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, 2023
20 Item 5A 120
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers 2,139,311 $
Cash paid to suppliers (835,854)
Cash paid to employees and related benefits (647,678)
Net cash provided by operating activities 655,779
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Purchase of capital assets (2,135,261)
Capital contributions received 1,880,879
Debt principal paid (370,659)
Debt interest paid (68,316)
Net cash used for capital and related financing activities (693,357) CASH FLOWS FROM INVESTING ACTIVITIES:

Amonts received from other funds 304,294
Investment income received 51,583
Payments on notes receivable received 3,555
Net cash provided by investing activities 359,432
Net increase in cash and cash equivalents 321,854
Cash and cash equivalents, beginning of year 3,457,778
Cash and cash equivalents, end of year 3,779,632 $

RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET POSITION:

Cash and cash equivalents $ 2,741,318
Restricted cash and cash equivalents 1,038,314
Cash and cash equivalents, end of year 3,779,632 $

RECONCILIATON OF NET INCOME FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:

Net income from operations $ (133,189)
Adjustments to reconcile net income from operations to cash provided by operating activities:

Depreciation 769,826
Nonoperating revenues received 3,000
(Increase) decrease in assets:

Accounts receivable, net (47,190)
Due from other governments (106)
(Decrease) increase in liabilities:

Accounts payable 15,893
Accrued expenses 1,915
Compensated absences (12,186)
Net pension liability 108,328
Deferred inflows (outflows) related to pension plan (50,512) Net cash provided by operating activities $ 655,779
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, 2023
21 Item 5A 121

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Item 5A 122

NOTES TO THE BASIC FINANCIAL STATEMENTS
Item 5A 123

CITY OF COLFAX, CALIFORNIA

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
22 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, 2023.

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, Item 5A 124

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
23 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 fund:

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.

Item 5A 125

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
24 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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.

Item 5A 126

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
25 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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:

Item 5A 127

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
26 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.

Lease Receivable: The City is a lessor for noncancellable leases of property for billboards and telecommunications facilities. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The City uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lease.

The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

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.

Item 5A 128

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
27 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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.

Item 5A 129

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
28 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.

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.

Item 5A 130

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
29 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Excess Expenditures Over Appropriations: The following funds had excess expenditures over appropriations:

Total
Expenditures and Excess
Fund Appropriations Transfers Out Expenditures
Gas Tax 69,014 $ 88,674 $ 19,660 $
Although expenditures exceeded the budget, there is fund balance sufficient to cover the expenditures.

Deficit Fund Equity: The following funds have fund deficits at June 30, 2023:

Fund Deficit
Nonmajor Capital Projects Funds:

Capital projects $ (143,416)
The fund deficit is the result of grant revenues not being collected within 90 days after year-end and thus were deferred, whereas the related expenditures were incurred.

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.

The City is currently analyzing the impact of this new Statement on the financial statements.

Item 5A 131

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
30 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, 2023 are classified in the accompanying financial statements as follows:

Governmental Business-Type
Activities Activities Total
Cash and investments 5,673,986 $ 2,741,318 $ $ 8,415,304 Restricted cash and investments 1,038,314 1,038,314
$ 5,673,986 $ 3,779,632 $ 9,453,618
As of June 30, 2023, the City’s cash and investments consisted of the following:

Cash on hand
Deposits in financial institutions $ 300
Investments 280,689
California Local Agency Investment Fund 9,172,629
Total cash and investments 9,453,618 $
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.

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.

Item 5A 132

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
31 NOTE B – CASH AND INVESTMENTS (Continued)
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 260 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, 2023, the carrying amount of the City’s deposits was $280,689 and the balance in financial institutions was $299,705. Of the balances in financial institutions, $250,000 was covered by federal depository insurance and the remaining amount was covered by the pledging financial institution with assets held in a common pool for the City and other governmental agencies, but not in the name of the City.

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 $176,442,053,163, which is managed by the State Treasurer. Of that amount, 2.78% 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.

Item 5A 133

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
32 NOTE C – INTERFUND TRANSACTIONS
Interfund balances at June 30, 2023 were as follows:

Due from
Other Funds
General
Due to Other Funds Fund
Capital Projects Fund $ 153,616
Gas Tax Fund 3,575
$ 157,191
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, 2023 were as follows:

Enterprise
Capital Transportation
Transfers out General Projects and Road Sewer Total
Major Governmental Funds:

General 6,205 $ 129,667 $ 20,058 $ 155,930 $
Nonmajor Governmental Funds:

CDBG $ 3,009 3,009
Gas Tax 68,463 68,463
Mitigation Funds 9,404 9,404
Grant Funds 284,236 284,236
$ 15 3,009 $ ,609 $ 198,130 $ 521 304,294 $ ,042
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.

NOTE D – LEASES RECEIVABLE
The City records a lease receivable and deferred inflow for the present value of the future payments received under agreements for several leases.

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.

In October 2022, the City entered into an agreement to lease property for telecommunications facilities that expires October 2027, and includes the option to extend for four additional five-year terms, for an Item 5A 134

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
33 NOTE D – LEASES RECEIVABLE (Continued)
annual rent of $6,000. The lease has rent increases every year at the CPI rate. For purposes of discounting future payments on the leases, the City used a discount rate of 7.75%. The deferred inflow is being amortized over 25 years, the total remaining term of the lease through all the optional extended periods.

For the year ended June 30, 2023 , the City reported leases receivable of $557,047 and deferred inflows of resources of $526,123. The City recognized $64,101 of lease and interest revenue during the year ended June 30, 2023 under these leases.

NOTE E – CAPITAL ASSETS
Governmental capital assets activity for the year ended June 30, 2023 was as follows:

Balance at Balance at
June 30, 2022 Additions Retirements June 30, 2023
Capital assets, not being depreciated:

Land 1,379,087 $ 1,379,087 $
Easements 68,310 68,310
Construction in progress 104,906 (1,267) $ 103,639
Total capital assets,
not being depreciated 1,552,303 - (1,267) 1,551,036
Capital assets, being depreciated:

Buildings and improvements 10,698,361 10,698,361
Vehicles 170,424 170,424
Machinery and equipment 191,327 $ 155,309 (17,144) 329,492 Furniture and fixtures 15,084 (2,550) 12,534
Total capital assets,
being depreciated 11,075,196 155,309 (19,694) 11,210,811 Less accumulated depreciation for:

Buildings and improvements (2,319,124) (281,640) (2,600,764) Vehicles (170,424) (170,424)
Machinery and equipment (13,404) (158,229) 17,144 (154,489) Furniture and fixtures (12,398) (1,791) 2,550 (11,639)
Total accumulated depreciation (2,660,175) (296,835) 19,694 (2,937,316) Capital assets being
depreciated, net 8,415,021 (141,526) 8,273,495

GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $ 9,967,324 $ (141,526) $ (1,267) $ 9,824,531 Depreciation expense for governmental capital assets was charged to functions as follows:

General governmental $ 18,908
Public safety 224
Public works 191,214
Culture and recreation 18,229
Community development 68,260
Total governmental activities depreciation expense $ 296,835 Item 5A 135

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
34 NOTE E – CAPITAL ASSETS (Continued)
Business-type capital assets activities for the year ended June 30, 2023 was as follows:

Balance at Balance at
June 30, 2022 Additions Retirements Transfers June 30, 2023 Capital assets,
not being depreciated:

Land 134,700 $ 134,700 $
Construction in progress 918,235 2,125,672 $ $ (523,837) 2,520,070 Total capital assets,
not being depreciated 2,125,672 1,052,935 (523,837) 2,654,770 Capital assets, being depreciated:

Buildings and improvements 25,857,752 25,857,752
Vehicles 44,053 44,053
Machinery and equipment 32,854 1,246,737 (43,618) $ 523,837 1,759,810 Total capital assets,
being depreciated 27,148,542 32,854 (43,618) 523,837 27,661,615 Less accumulated depreciation for:

Buildings and improvements (8,923,700) (649,867) (9,573,567) Vehicles (31,455) (6,299) (37,754)
Machinery and equipment (113,660) (653,778) 43,618 (723,820) Total accumulated depreciation (9,608,933) (769,826) 43,618 (10,335,141) Capital assets being
depreciated, net 17,539,609 (736,972) 523,837 17,326,474

BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ 18,592,544 $ 1,388,700 $ - $ - $ 19,981,244 Depreciation expense for business-type capital assets was charged to functions as follows:

Sewer $ 769,826
Total business-type activities depreciation expense $ 769,826 Item 5A 136

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
35 NOTE F – LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2023 was as follows:

Balance Balance Due Within
June 30, 2022 Additions Reductions June 30, 2023 One Year Governmental Activities:

Postclosure landfill costs 389,275 $ $ 27,249 $ 416,524 Compensated absences 16,188 $ (12,108) 4,080 2,040$
Net pension liability 100,072 - 100,072
Governmental activities
long-term liabilities 405,463 $ $ 127,321 $ (12,108) $ 520,676 $ 2,040 Business-Type Activities:

State loan - restructured 6,831,420 $ $ (370,659) $ 6,460,761 $ 374,366 Note Payable 104,629 104,629 104,629
Total bonds, loans,
settlements payable 6,936,049 (370,659) 6,565,390 478,995 Compensated absences 24,738 (12,186) 12,552 6,276
Net pension liability 106,262 - $ 106,262
Business-type activities
long-term liabilities 6,960,787 $ 106,262$ $ (382,845) $ 6,684,204 $ 485,271 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, 2023:

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, 2023, the remaining closure and postclosure maintenance costs to be recognized over the next 15 years is $416,524.

Long-term debt of the City’s business-type activities consisted of the following as of June 30, 2023:

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.

Item 5A 137

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
36 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
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 389,567 49,407 438,974
2029-2033 2,007,055 187,814 2,194,869
2034-2038 2,109,435 85,434 2,194,869
2039 434,627 4,346 438,973
Totals 6,460,761 $ $ 562,820 $ 7,023,581
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 $7,023,581 at June 30, 2023. Total cash basis principal and interest payments on the loan during the year ended June 30, 2023 were $438,974 and net revenues were $712,075, respectively.

Item 5A 138

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
37 NOTE G – NET POSITION/FUND BALANCE
The following are the purposes for which net positions are restricted on the Government-Wide Statement of Net Position:

Governmental Business-Type
Activities Activities
Mitigation projects 742,809 $
Landfill 476,560
Street projects 267,702
Recycling 23,921
Economic development 9,639
Debt service reserve 438,974 $
Capital improvements 321,775
Replacement of short-lived assets 277,565
$ 1,520,631 $ 1,038,314
In addition to these restricted amounts, the City Council had designated $460,000 from the operating reserve and $500,000 for capital projects in business-type activities at June 30, 2023.

The following are the components of the Governmental Funds fund balances:

Nonmajor Total
Governmental Governmental
General Funds Funds
Fund balances:

Nonspendable:

Long-term receivables $ 52,191 $ 9,639 $ 61,830
Prepaid expenses 3,000 3,000
Total Nonspendable 55,191 9,639 64,830
Restricted for:

Landfill closure 893,084 893,084
Street projects 267,702 267,702
Mitigation projects 742,809 742,809
Recycling 23,921 23,921
Total Restricted 893,084 1,034,432 1,927,516
Committed for:

Operating Reserve 600,000 600,000
Pension Reserve 145,000 145,000
Capital Reserve 350,000 350,000
Total Committed 1,095,000 1,095,000
Assigned for:

Fire services 95,634 95,634
Total Assigned 95,634 95,634
Unassigned 2,831,020 (143,416) 2,687,604
Total Unassigned 2,831,020 (143,416) 2,687,604
TOTAL FUND BALANCES 4,969,929 $ $ 900,655 $ 5,870,584
Item 5A 139

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
38 NOTE G – NET POSITION/FUND BALANCE (Continued)
The City Council has designated $600,000 of General Fund committed fund balance as an operating reserve to protect against revenue shortfalls and unpredicted one-time expenditures.

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, 2023, 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 7.00% 6.75%
Required employer contribution rates 9.12% 7.47%
In addition to the contribution rates above, the City was also required to make payments of $15,352 toward its unfunded actuarial liability during the year ended June 30, 2023. The Miscellaneous Rate Plan is closed to new members that are not already CalPERS eligible participants.

Item 5A 140

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
39 NOTE H – PENSION PLAN (Continued)
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, 2023, the employer contribution made to the Plan was $73,921.

Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources: As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of $206,334.

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, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 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, 2023 and 2022 was as follows:

Miscellaneous
Plan
Proportion - June 30, 2022 -0.00020%
Proportion - June 30, 2023 0.00441%
Change - Increase (Decrease) 0.00461%
For the year ended June 30, 2023, the City recognized pension expense of $182,180. At June 30, 2023, 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 73,921 $ Changes in assumptions 21,143
Net differences between projected and actual earnings
on plan investments 37,795
Difference between actual and allocated contributions 10,434 Difference between expected and actual experience 4,144 (2,775)$ Adjustment due to differences in proportions 82,266
Total $ 229,703 $ (2,775)
Item 5A 141

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
40 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
2024 59,647 $
2025 45,747
2026 24,496
2027 23,117
$ 153,007
Actuarial Assumptions: The total pension liabilities in the actuarial valuations for the Plan was determined using the following actuarial assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90% (a)
Inflation 2.30%
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 rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. Further details can be found in the 2021 experience study report on the CalPERS website.

Discount Rate: The discount rate used to measure the total pension liability was 6.90%. 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.

Item 5A 142

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
41 NOTE H – PENSION PLAN (Continued)
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.

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
Asset Class (c) Allocation Years 1 - 10(a),(b)
Global Equity - cap-weighted 30.00% 4.45%
Global Equity non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yeild 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021-22 Asset Liability Management study.

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 5.90%
Net Pension Liability/(Asset) 398,148 $
Current Discount Rate 6.90%
Net Pension Liability/(Asset) 206,334 $
1% Increase 7.90%
Net Pension Liability/(Asset) 48,517 $
Fiduciary Net Position: Detailed information about the Plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

Item 5A 143

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
42 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 $ 750,000 $ 39,500,000 $ 25,000
Employers liability/crime 1,000,000 2,500
Property 500,000,000 25,000
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 Pollution 10,000,000 250,000
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.

Item 5A 144

CITY OF COLFAX, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
43 NOTE J – COMMITMENTS AND CONTINGENCIES
Contract Commitments: The City had the following contract commitments at June 30, 2023:

Remaining
Contract
Amount
I & I Mitigation Project 4,225,633 $
Wastewater Treatment Plant Algae Removal 3,964,224
$ 8,189,857
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.

Item 5A 145
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Item 5A 146

COMPLIANCE REPORT

REQUIRED SUPPLEMENTARY INFORMATION
Item 5A 147
Actual Amounts
(Budgetary
Basis) Variance with
Original Final (See Note A) Final Budget
REVENUES:

Taxes 1,924,800 $ 1,977,800 $ 2,022,508 $ 44,708 $
Licenses, fees and permits 146,792 141,792 155,271 13,479 Intergovernmental revenues 196,500 223,800 262,302 38,502 Charges for services 198,550 198,550 261,149 62,599
Fines, forfeitures and penalties 2,500 2,500 3,296 796
Use of money and property 129,000 89,000 211,325 82,325 Other revenue 10,533 10,533
Total revenues 2,558,142 2,673,442 2,926,384 252,942

EXPENDITURES
Current:

General government 1,028,138 1,043,638 997,328 46,310
Public safety 860,422 920,422 880,741 (20,319)
Public works 192,566 186,092 176,683 9,409
Engineering services 182,250 147,250 128,522 18,728
Culture and recreation 166,816 157,842 140,605 17,237
Capital outlay 275,000 118,873 156,127
Total expenditures 2,490,192 2,670,244 2,442,752 227,492 Excess (deficiency) of revenues
over expenditures 67,950 3,198 483,632 480,434
OTHER FINANCING SOURCES (USES):

Transfers in 6,000 6,000 3,009 (2,991)
Transfers out (347,771) (347,771) (155,930) 191,841
Total other financing sources (uses) (341,771) (341,771) (152,921) 188,850 Net change in fund balance (273,821) (338,573) 330,711 669,284 Fund balance, beginning of year 4,639,218 4,639,218 4,639,218 Fund balance, end of year $ 4,365,397 $ 4,300,645 $ 4,969,929 $ 669,284 The accompanying notes are an integral part of these financial statements.

Budgeted Amounts

CITY OF COLFAX
For the Year Ended June 30, 2023

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -

BUDGET AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND
44 Item 5A 148
June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015
Proportion of the net pension liability 0.00441% -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) 206,334 $ $ 145,938 $ 92,380 117,142 $ 97,040 $ 70,057 $ 46,274 $ 57,010 $ Covered payroll - measurement period $ 645,747 $ 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 31.95% -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 85.34% 100.31% 86.77% 86.84% 88.14% 84.22% 83.56% 78.40% 79.82% Notes to Schedule:

Reporting valuation 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, 2013 Reporting measurement date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Discount rate 6.90% 7.15% 7.15% 7.15% 7.65% 7.65% 7.50% 7.50% 7.50% June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, 2023 2022 2021 2020 2019 2018 2017 2016 2015
Contractually required contribution - employer
fiscal year (actuarially determined) $ 73,921 $ 64,454 $ 59,733 $ 63,773 $ 52,523 $ 44,554 $ 48,319 $ 33,408 $ 30,589 Contributions in relation to the actuarially
determined contributions (73,921) (64,454) (59,733) (63,773) (52,523) (44,554) (48,319) (33,408) (30,589) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll - employer fiscal year $ 645,747 771,795 $ $ 591,701 $ 727,475 $ 639,107 $ 615,095 $ 595,177 $ 456,524 $ 367,481 Contributions as a percentage of covered payroll 9.58% 9.98% 10.10% 8.77% 8.22% 7.24% 8.12% 7.32% 8.32% Notes to schedule:

Contribution 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 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% 2.500% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Payroll growth 2.750% 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% 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age
Mortality
Market Value
50-67 years. Probabilities of retirement are based on the most recent CalPERS Experience Study.

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.

Varies by Entry Age and Service
Most recent CalPERS Experience Study

CITY OF COLFAX

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - MISCELLANEOUS PLAN (UNAUDITED)
Entry age normal cost method
Level percentage of payroll, closed
Varies, but not more than 30 years
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 7.15% to 6.90% in the 2021 valuation. 45 Item 5A 149
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Item 5A 150

COMBINING STATEMENTS AND INDIVIDUAL FUND STATEMENT
Item 5A 151
Transportation Road
& Road Gas Maintenance
CDBG Fund Tax SB1/RSTBG
ASSETS:

Cash and investments 80,589$ 209,801$
Accounts receivable 2,249
Due from other governmental agencies 4,941$ 7,986
Interest receivable 1,555
Notes receivable 9,639$
Total assets 9,639$ 82,838$ 4,941$ 219,342$
LIABILITIES AND FUND BALANCES:

LIABILITIES:

Accounts payable 31,777$ 1,366$
Accrued expenses 2,701
Deferred revenue
Due to other funds 3,575
Total liabilities 34,478 4,941
Deferred Inflows of Resources
Unavailable revenue
Total Deferred Inflows of Resources
FUND BALANCES:

Nonspendable 9,639$
Restricted 48,360 219,342$
Unassigned
Total fund balances 9,639 48,360 219,342
Total liabilities and fund balances 9,639$ 82,838$ 4,941$ 219,342$ The accompanying notes are an integral part of these financial statements.

CITY OF COLFAX

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2023
Special Revenue
46 Item 5A 152
Total
Nonmajor
Mitigation Beverage Oil Grant Capital Governmental
Funds Recycling Grant Funds Projects Funds
737,177$ 19,439$ 3,833$ 20,532$ 1,071,371 $
2,249
217,230$ 230,157
5,632 147 29 155 7,518
9,639
742,809$ 19,586$ 3,862$ 20,687$ 217,230$ $ 1,320,934
63,613$ $ 96,756
2,701
20,214$ 20,214
153,616 157,191
20,214 217,229 276,862
143,417 143,417
143,417 143,417
9,639
742,809$ 19,586$ 3,862$ 473 1,034,432
(143,416) (143,416)
742,809 19,586 3,862 473 (143,416) 900,655
742,809$ 19,586$ 3,862$ 20,687$ 217,230$ $ 1,320,934

Capital
Special Revenue Projects
47 Item 5A 153
Supplemental Transportation Road
Law & Road Gas Maintenance
Enforcement CDBG Fund Tax SB1/RSTBG
REVENUES:

Taxes 57,349$
Licenses, fees and permits 180$
Intergovernmental revenues 165,271$ 179,128 45,572$
Use of money and property 364$ 4,319
Total revenues 165,271 364 179,308 57,349 49,891
EXPENDITURES:

Current:

Public safety 165,271
Public works 323,271 20,211
Capital outlay 35,169
Total expenditures 165,271 358,440 20,211
Excess (deficiency) of revenues
over (under) expenditures 364 (179,132) 37,138 49,891
OTHER FINANCING SOURCES (USES):

Transfers in 198,130
Transfers out (3,009) (68,463)
Total other financing sources (uses) (3,009) 198,130 (68,463) Net change in fund balances (2,645) 18,998 (31,325) 49,891 Fund balances, beginning of year 12,284 29,362 31,325 169,451 Fund balances, end of year -$ 9,639$ 48,360$ -$ 219,342$ 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, 2023
Special Revenue
48 Item 5A 154
Total
Nonmajor
Mitigation Beverage Oil Grant Capital Fire Governmental Funds Recycling Grant Funds Projects Capital Funds
$ 57,349
2,080$ 2,260
283,276$ 151,361$ 824,608
16,712 436$ 86$ 1,421 23,338
18,792 436 86 284,697 151,361 907,555
165,271
190,415 533,897
35,169
190,415 734,337
18,792 436 86 284,697 (39,054) 173,218
15,609 213,739
(9,404) (284,236) (365,112)
(9,404) (284,236) 15,609 (151,373)
9,388 436 86 461 (23,445) 21,845
733,421 19,150 3,776 12 (119,971) 878,810
742,809$ 19,586$ 3,862$ 473$ (143,416) $ -$ 900,655 $
Special Revenue Capital Projects
49 Item 5A 155

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Item 5A 156

COMPLIANCE REPORT
Item 5A 157
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728
50 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, 2023, 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 21, 2023.

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.

Item 5A 158
To the City Council
City of Colfax, California
51 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 21, 2023
Item 5A 159
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, 2023. 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 July 18, 2023, 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 system of 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.

Item 5A 160
To the City Council

Page 2 ends

Colfax City CouncilJanuary 24, 2024

Colfax City Council
January 24, 2024