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.
February 28, 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
February 28, 2024
Regular Session 6:00 PM
You may access the meeting and address the Council by the following means:
ZOOM at
https://us02web.zoom.us/j/82193607735
Dial in by calling one of the numbers listed below and enter the Webinar ID:
821 9360 7735
1 (669) 900-6833 / 1 (669) 444-9171 / 1 (719) 359-4580 / 1 (253) 205-0468 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 (None)
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 (Page 5-8)
Recommendation: By Motion, approve the Colfax City Council minutes of 2/14/2024. 3B. SCI Consulting Group Two Year Contract Extension (Page 9-22) Recommendation: Adopt Resolution__-2024 ratifying a two-year extension of the existing consulting contract with SCI Consulting Group and authorizing a two-year contract extension through February 2026.
1 Colfax City Council Meetings are ADA compliant. If you need disability-related modification or accommodation including auxiliary aids or services to participate in this meeting, please contact the City Clerk at (530) 346-2313 at least 72 hours prior to make arrangements for ensuring your accessibility.
February 28, 2024
3C. Councilwoman Burruss Attending Capital to Capital (Cap to Cap) (Page 23-24) Recommendation: By Motion, allocate funds for Councilmember Burruss to attend the annual Capital to Capital Program in Washington D.C. not to exceed $5,306.00. 3D. Update the Authorized Representative to sign agreements and funding requests for the State Water Resources Control Board Sewer Collection system and Wastewater Treatment Plant Improvements Grant (Page 25-26)
Recommendation: Adopt Resolution __-2024 authorizing the City Manager to sign and file agreements and funding requests for the State Water Resources Control Board Sewer Collection System and Wastewater Treatment Plant Improvements Grant. 3E. Cash Summary – January 2024 (Page 27-34)
Recommendation: Accept and File.
3F. Quarterly Investment Report – Quarter ended December 31, 2023 (Page 35-44) Recommendation: Accept and File.
3G. City Engineering Consultant Services – GHD Budget Amendment (Page 45-60) Recommendation: Adopt Resolution__-2024 authorizing the City Manager to amend the GHD budget in the amount of $76,000 to fund additional time requested for the remaining term of the 2- year extension.
*** 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. Skate Park Project Update and Funding Request (Page 61-64) Recommendation: Adopt Resolution __-2024 to review and approve a redesign of the Colfax Skate Park, ensuring alignment with current budget constraints and authorize the allocation of $100,000 from the city’s Parks and Recreation mitigation fund to supplement existing project budget limitations.
5B. Sewer Rate Study Presentation (Page 65-136)
Recommendation: Review and by motion, provide direction to staff to work with Hansford Economic Consulting to move forward with the Sewer Rate Study Process. 5C. Fiscal year 2023-2024 Mid-Year Operating Budget Review (Page 137-143) Recommendation: Review fiscal year 2023-2024 mid-year budget report and approve budget amendments.
6 PUBLIC HEARING (None)
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.
February 28, 2024
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.
8 COUNCIL AND STAFF
The purpose of these reports is to provide information to the Council and public on projects, programs, and issues discussed at committee meetings and other items of Colfax related information. No decisions will be made on these issues. If a member of the Council prefers formal action be taken on any committee reports or other information, the issue will be placed on a future Council meeting agenda.
8A. Committee Reports and Colfax InformationalItems – All Councilmembers 8B. City Operations Update – City Manager
9 COUNCIL BUSINESS
9A. Construction Contract Award for CDBG Road Rehabilitation Project (Page 144-164) Recommendation: Adopt Resolution __-2024 awarding and authorizing the City Manager to execute a construction contract with Hansen Bros. Enterprises in the amount of $1,729,104.00 with a 15% contingency for a total amount not to exceed $1,988,470.00 for the CDBG Road Rehabilitation Project.
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 ADJOURNMENT
3 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.
February 28, 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/
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 Colfax City Council Minutes 2/14/2024
City Council Minutes
Wednesday, February 14, 2024
City Hall Council Chambers,
33 S Main Street, Colfax, CA
A Regular Meeting of the Colfax City Council was held at Colfax City Hall, 33 S Main Street, Colfax, CA on Wednesday, February 14, 2024 at 6:00 p.m. with Mayor Douglass presiding and Interim City Clerk Amy Lind recording the minutes.
PLEDGE OF ALLEGIANCE
CALL TO ORDER/ ROLL CALL
Council Members Present: Trinity Burruss, Larry Hillberg (arrived at 6:04p.m.), McCully, Kim Douglass
Council Members Absent: Sean Lomen
1. No closed session
2. Open Session
APPROVAL OF AGENDA ORDER
The MOTION was made by Councilmember McCully and seconded by Councilmember Burruss, and approved unanimously.
STATEMENT OF CONFLICT OF INTEREST – No conflicts were identified by the Council or the public.
3 CONSENT CALENDAR
3A. Minutes
By Motion, approve the Colfax City Council minutes of 1/24/2024. 3B. Emergency Portable Sewer Pump Rental
By Motion, authorize the City Manager to execute a rental agreement with Pac Machine Company for an emergency portable pump.
3C. Sewer Life Station $5, Pump #1 Repair
By Motion, authorize the City Manager to execute a repair agreement with Commercial Pump Service Inc. for the repair of pump 1 at the lift station 5 and approve Commercial Pump Service Inc. as the sole source provider for the repair. ***End of Consent Calendar***
By MOTION, approve the consent calendar.
Item 3a.
5 Colfax City Council Minutes 2/14/2024
The MOTION was made by Councilmember Burruss, and seconded by Councilmember McCully, and approved by the following vote:
AYES: Burruss, Hillberg, McCully, Douglass
NOES:
ABSTAIN:
ABSENT: Lomen
4. AGENCY REPORTS
Placer County Sheriff’s Office – Sgt Griffiths provided statistics from January 2024.
California Highway Patrol – n/a
Placer County Fire Department/CALFIRE – Asst. Chief Counts provided statistics for January 2024 and recent storm response.
Non-Profits – Otis Wollan, Sierra Vista Treasurer, spoke about a recent advisory board meeting and outcome on the allocation of the annual dividend, fire insurance challenges, and interest to increase interaction with Council and Community.
5. PRESENTATION
Railroad Days Update
Fred Abbott announced the event will be the 2
nd weekend of September. Jeff
Campbell and Caroline McCully will be the new organizers of this event moving forward. He spoke about anticipated participation, volunteers, and costs. He asked for a sponsorship for $3,000 to support this annual event. Ms. McCully spoke about a new carnival area with non-profits participating. Council Member Hillberg asked about sources of revenue for the event. Mr. and Mrs. Abbott spoke about income for the event, Union Pacific’s involvement and the history of the event.
6. Public Hearing – None.
7. PUBLIC COMMENT
Carla Jameson, 21 East Oak Street, spoke about a break-in at her neighbors and the law enforcement response time. Council Member Burruss said she has requested a response time report from the Sheriff’s office for review.
Item 3a.
6 Colfax City Council Minutes 2/14/2024
8. COUNCIL AND STAFF
Committee Reports and Colfax Informational Items
Council Member McCully reported on the PCCOA dinner, Coffee and Conversations with the Chamber, and the Placer County Air Pollution Control District.
Council Member Burruss reported on Cap-to-Cap trip to Washington DC. and her participation on the Wildfire subcommittee. She is asking for the Council’s support with a future agenda item regarding her participation and city sponsorship on the registration fee ($5,500).
Mayor Douglass reported on LAFCO/ City Selection Committee and upcoming development plans.
City Operations Update
City Manager Ron Walker reported on the PCCOA dinner, Colfax Hotel, the Community Center, and current projects.
9. COUNCIL BUSINESS
*** Council recessed for 5 minutes***
9A.Council Committee Assignments Review
Council Member Hillberg and Mayor Douglass confirmed the appointments on Placer County Economic Development Board (Hillberg as primary and Douglass as alternate).
Council Member Burruss spoke about LAFCO and the City Selection Committee and would like to clarify this appointment. Consensus of the Council was that Council Member Burruss would be the appointment on LAFCO. She also clarified her intent on the SACOG appointment and having Council Member McCully be an active participant as an alternate.
These appointments were clarified, with no actual changes made.
GOOD OF THE ORDER/ PUBLIC COMMENT
Council Member Hillberg spoke about the success of the Colfax High School Girls Basketball team.
Item 3a.
7 Colfax City Council Minutes 2/14/2024
Council Member Burruss also spoke about the Colfax High School Girls Basketball team. She spoke about how successful many of the school’s competitive programs are. She said she would like to consider a donation for the High School’s Model United Nations Club who competed in Rome, due to the direct connection to being future public leaders.
Mayor Douglass addressed Railroad Days and the Colfax Connection newsletter.
ADJOURNMENT
As there was no further business on the agenda, Mayor Douglass adjourned the meeting, by motion and without objection at 7:19p.m.
________________________
Kim Douglass, Mayor
_________________________
Amy Lind, Interim City Clerk
Item 3a.
8 City of Colfax SCI Consulting Group Contract Extension Staff Report February 28, 2024
Staff Report to City Council
FOR THE FEBRUARY 28, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Ron Walker, City Manager
Subject: SCI Consulting Group Two Year Contract Extension Budget Impact Overview:
N/A: Funded: √ Un-funded: Amount: $41,000 Fund(s): 100
Summary/Background
In February 2019, the City entered into an agreement with SCI Consulting Group to manage and oversee the local cannabis program. The initial contract, originally set to expire on February 28, 2022, was administratively extended to February 28, 2024, without Council action.
Conclusions and Findings
Staff believes that SCI Consulting Group has performed exceptionally well, and we recommend extending their contract until February 28, 2026. To comply with city policy, the council must ratify the extension that was administratively approved for the period from February 28, 2022, to February 28, 2024, and approve an additional two-year extension until February 28, 2026.
Fiscal Impacts
The fiscal impact for the additional two-year extension is $41,000.
Attachments:
1. Resolution __-2024
2. Agreement with SCI
3. SCI Consulting Group Request for Two-Year Contract
Extension
RECOMMENDED ACTION: Adopt Resolution __-2024 ratifying a two-year extension of the existing consulting contract with SCI Consulting Group and authorizing a two-year contract extension through February 2026.
Item 3b.
9 _________________________________________________________________________________________ City of Colfax SCI Consulting Group Contract Extension
Resolution __-2024
City of Colfax
City Council
Resolution № __ - 2024
AUTHORIZE THE CITY MANAGER TO EXECUTE A TWO-YEAR EXTENSION OF THE EXISTING SCI CONSULTING GROUP AGREEMENT THROUGH FEBRUARY 2024 AND AUTHORIZE AN ADDITIONAL TWO-YEARS THROUGH FEBRUARY 2026
WHEREAS, In February 2019, the City entered into an agreement with SCI Consulting Group to manage and oversee the local cannabis program. The initial contract, originally set to expire on February 28, 2022, was administratively extended to February 28, 2024, without Council action; and, WHEREAS, SCI Consulting Group has performed exceptionally well, and staff is recommending Council extend their contract through February 28, 2026. To comply with city policy, the council must ratify the extension that was administratively approved for the period from February 28, 2022, to February 28, 2024, and approve an additional two-year extension until February 28, 2026.
NOW THEREFORE, BE IT RESOLVED the City Council of the City of Colfax authorizes the City Manager to extend the contract with SCI to February 28, 2026, and ratify the prior extension period from February 28, 2022 to February 28, 2024.
THE FOREGOING RESOLUTION WAS DULY AND REGULARLY ADOPTED at the Regular Meeting of the City Council of the City of Colfax held on the 28th of February 2024 by the following vote of the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________________
Kim A. Douglass, Mayor
ATTEST:
________________________________________
Amy Lind, Interim City Clerk
Item 3b.
10 AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT is made and entered into on this 28th day of February 2024 by and between the City of Colfax, a municipal corporation of the State of California ("City") and SCI Consulting Group (“Consultant").
RECITALS
A. The City desires to retain Consultant to provide the Services set forth in detail in Exhibit A hereto (the "Services") subject to the terms and conditions of this Agreement.
B. Consultant is duly licensed and sufficiently experienced to undertake and perform the Services in a skilled and workmanlike manner and desires to do so in accordance with the terms and conditions of this Agreement.
Now, therefore, in consideration of the mutual covenants, promises and conditions set forth in this Agreement, the City and Consultant agree as follows:
Section 1. Services
Subject to the terms and conditions set forth in this Agreement, Consultant shall furnish and perform all of the Services described in detail in Exhibit A hereto and incorporated herein by this reference (the "Services") to the satisfaction of the City. Consultant shall not perform any work exceeding the scope of the Services described in Exhibit A without prior written authorization from the City.
Section 2. Time of Completion.
Consultant's schedule for performance of the Services is set forth in Exhibit A hereto which is incorporated herein by this reference. Consultant shall commence performance of the Services promptly upon receipt of written notice from the City to proceed. Performance of the Services shall progress and conclude in accordance with the schedule set forth in Exhibit A. During the performance of the Services, Consultant shall provide the City with written progress reports at least once each month and at such additional intervals as City may from time to time request.
Section 3. Compensation.
A. Except as may otherwise be provided in Exhibit A or elsewhere in this Agreement or its exhibits, Consultant shall invoice City once each month for the Services performed during the preceding month. Such invoices shall itemize all charges in such detail as may reasonably be required by City in the usual course of City business but shall include at least:
i. the date of performance of each of the Services,
ii. identification of the person who performed the Services, Item 3b.
11 iii. a detailed description of the Services performed on each date, iv. the hourly rate at which the Services on each date are charged, v. an itemization of all costs incurred and
vi. the total charges for the Services for the month invoiced.
As long as the Consultant performs the Services to the satisfaction of the City, the City shall pay the Consultant an all-inclusive compensation that shall not exceed the amount as detailed in Exhibit A except pursuant to an authorized written change order issued pursuant to Section 15 of this Agreement before the Services requiring additional compensation are performed. City shall pay Consultant no later than thirty (30) days after approval of the monthly invoice by City's staff.
B. The Consultant's compensation for the Services shall be full compensation for all indirect and direct personnel, materials, supplies, equipment and services incurred by the Consultant and used in carrying out or completing the Services. Payments shall be in accordance with the payment schedule established in Exhibit A or elsewhere in this Agreement or its exhibits.
C. The City shall have the right to receive, upon request, documentation substantiating charges billed to the City pursuant to this Agreement. The City shall have the right to perform an audit of the Consultant's relevant records pertaining to the charges.
D. Any Services performed more than sixty (60) days prior to the date upon which they are invoiced to the City shall not be compensable.
Section 4. Professional Ability; Standard of Quality.
City has relied upon the professional training and ability of Consultant to perform the Services described in Exhibit A as a material inducement to enter into this Agreement.
Consultant shall therefore provide properly skilled professional and technical personnel to perform all Services under this Agreement. All Services performed by Consultant under this Agreement shall be in a skillful, workmanlike manner in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Consultant's field of expertise.
Section 5. Indemnification.
Consultant shall hold harmless and indemnify, including without limitation the cost to defend, the City and its officers, agents and employees from and against any and all claims, demands, damages, costs or liability that arise out of, or pertain to, or relate to the negligence, recklessness or willful misconduct of Consultant and/or its agents in the performance of the Services. This indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or material defects in design by the City or its agents, servants employees or independent contractors other than Consultant who are directly responsible to the City, or arising from the active negligence of the City officers, agents, employees or volunteers.
Item 3b.
12 Section 6. Insurance.
Without limiting Consultant's indemnification obligations provided for above, Consultant shall take out before beginning performance of the Services and maintain at all times during the life of this Agreement the following policies of insurance with insurers possessing a Best rating of not less than A. Consultant shall not allow any subcontractor, professional or otherwise, to commence work on any subcontract until all insurance required of the Consultant has also been obtained by the subcontractor.
A. Workers' Compensation Coverage. Statutory Workers' Compensation insurance and Employer's Liability Insurance to cover its employees. In the alternative, Consultant may rely on a self-insurance program to meet its legal requirements as long as the program of self-insurance complies fully with the provisions of the California Labor Code. Consultant shall also require all subcontractors, if such are authorized by the City, to similarly provide Workers' Compensation insurance as required by the Labor Code of the State of California for all of the subcontractor's employees. All Workers' Compensation policies shall be endorsed with the provision that the insurance shall not be suspended, voided, or cancelled until thirty (30) days prior written notice has been provided to City by the insurer. The Workers' Compensation insurance shall also contain a provision whereby the insurance company agrees to waive all rights of subrogation against the City and its elected or appointed officials, officers, agents, and employees for losses paid under the terms of such policy which arise from the Services performed by the insured for the City.
B. General Liability Coverage. General liability insurance, including personal injury and property damage insurance for all activities of the Consultant and its subcontractors, if such are authorized by the City, arising out of or in connection with the Services. The insurance shall be written on a comprehensive general liability form and include a broad form comprehensive general liability endorsement. In the alternative, the City will accept, in satisfaction of these requirements, commercial general liability coverage which is equivalent to the comprehensive general liability form and a broad form comprehensive general liability endorsement. The insurance shall be in an amount of not less than $1 million combined single limit personal injury and property damage for each occurrence. The insurance shall be occurrence based insurance. General liability coverage written on a claims made basis shall not be acceptable absent prior written authorization from the City.
C. Automobile Liability Coverage. Automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with this Agreement, including coverage for owned, hired and nonowned vehicles, in an amount of not less than $1 million combined single limit for each occurrence.
D. Policy Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following provisions:
Item 3b.
13 1. The City, and its elected or appointed officials, employees and agents shall be named as insureds or additional insureds with regard to damages and defenses of claims arising from activities performed by or on behalf of the Consultant.
2. The insurance afforded by each policy shall apply separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the insurer's limits of liability.
3. The insurance shall be primary insurance as respects the City and its elected or appointed officers, officials, employees and agents. Any other insurance maintained by the City or its elected or appointed officers, officials, employees, agents or volunteers shall be in excess of this insurance and shall not contribute with it.
4. The insurance shall not be suspended, voided, cancelled, or reduced in coverage or in limits except after thirty (30) days prior written notice has been provided to the City.
5. Any failure to comply with the reporting requirements of any policy shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, or agents.
E. Professional Liability Coverage. If required by the City, Consultant shall also take out and maintain professional liability, errors and omissions insurance in an amount not less than $1 million. The professional liability insurance policy shall be endorsed with a provision stating that it shall not be suspended, voided, cancelled, or reduced in coverage or in limits except after thirty (30) days written notice has been provided to the City.
F. Insurance Certificates and Endorsements. Prior to commencing the Services under this Agreement, Consultant shall submit to the City documentation evidencing the required insurance signed by the insurance agent and the companies named. This documentation shall be on forms which are acceptable to the City and shall include all required endorsements and verify that coverage is actually in effect. This Agreement shall not be effective until the required insurance forms and endorsements are submitted to and approved by the City. Failure to provide these forms within the time period specified by City may result in the award of this Agreement to another Consultant should the City, in its sole discretion, decide to do so. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.
G. Deductible and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City.
H. Termination of Insurance. If the City receives notification that Consultant's insurance will be suspended, voided, cancelled or reduced in coverage or in limits, Item 3b.
14 and if the Consultant does not provide for either the reinstatement of that insurance or for the furnishing of alternate insurance containing all of the terms and provisions specified above prior to the termination of that insurance, City may either terminate this Agreement for that breach, or City may secure the required insurance to satisfy the conditions of this Agreement and deduct the cost thereof from compensation which would otherwise be due and payable to the Consultant for Services rendered under the terms of this Agreement.
Section 7. Subcontracts.
Consultant may not subcontract any portion of the Services without the written authorization of City. If City consents to a subcontract, Consultant shall be fully responsible to the City and third parties for all acts or omissions of the subcontractor to which the Services or any portion thereof are subcontracted. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor, nor shall it create any obligation on the part of the City to pay or cause the payment of any monies due to any such subcontractor except as otherwise is required by law.
Section 8. Assignment.
Consultant shall not assign any right or obligation under this Agreement without the City's prior written consent. Any attempted assignment of any right or obligation under this Agreement without the City's prior written consent shall be void.
Section 9. Entire Agreement.
This Agreement represents the entire understanding of City and Consultant as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered herein. This Agreement may not be modified or altered except in writing signed by both parties.
Section 10. Jurisdiction.
This Agreement shall be administered and interpreted under the laws of the State of California. Jurisdiction over any litigation arising from this Agreement shall be in the Superior Court of the State of California with venue in Placer County, California.
Section 11. Suspension of Services.
Upon written request by Consultant, City may suspend, in writing, all or any portion of the Services if unforeseen circumstances beyond the control of the City and Consultant make normal progress of the Services impossible, impractical or infeasible. Upon written City approval to suspend performance of the Services, the time for completion of the Services shall be extended by the number of days performance of the Services is suspended.
Item 3b.
15 Section 12. Termination of Services.
City may at any time, at its sole discretion, terminate all or any portion of the Services and this Agreement upon seven (7) days written notice to Consultant. Upon receipt of notice of termination, Consultant shall stop performance of the Services at the stage directed by City.
Consultant shall be entitled to payment within thirty (30) days for Services performed up to the date of receipt of the written notice of termination. Consultant shall not be entitled to payment for any Services performed after the receipt of the notice of termination unless such payment is authorized in advance in writing by the City.
Should Consultant fail to perform any of the obligations required of Consultant within the time and in the manner provided for under the terms of this Agreement, or should Consultant violate any of the terms and conditions of this Agreement, City may terminate this Agreement by providing Consultant with seven (7) days written notice of such termination. The Consultant shall be compensated for all Services performed prior to the date of receipt of the notice of termination. However, the City may deduct from the compensation which may be owed to Consultant the amount of damage sustained or estimated by City resulting from Consultant's breach of this Agreement.
Consultant's obligations pursuant to Sections 5 and 6 of this Agreement shall survive termination, and continue in effect for as long as necessary to fulfill the purposes of Sections 5 and 6.
Section 13. Independent Contractor.
Consultant shall in all respects be an independent contractor and not an agent or employee of City. Consultant has and shall retain the right to exercise full control and supervision of the means and methods of performing the Services. Consultant shall receive no premium or enhanced pay for Services normally understood as overtime; nor shall Consultant receive holiday pay, sick leave, administrative leave or pay for any other time not actually expended in the performance of the Services. It is intended by the parties that Consultant shall not be eligible for benefits and shall receive no compensation from the City, except as expressly set forth in this Agreement. Consultant shall submit completed W -9 and Report of Independent Contractor forms upon execution of this Agreement and prior to the payment of any compensation hereunder.
Section 14. Ownership of Documents.
Within thirty (30) days after the Consultant substantially completes performance of the Services, or within thirty (30) days after the termination of this Agreement, the Consultant shall deliver to the City all files, records, materials and documents drafted or prepared by Consultant's in the performance of the Services. It is expressly understood and agreed that all such files, records, materials and documents are the property of the City and not the property of the Consultant. All finished and unfinished reports, plans, studies, documents and other writings prepared by and for Consultant, its officers, employees and agents in the course of performing the Services shall become the sole property of the City upon payment Item 3b.
16 to Consultant for the Services, and the City shall have the exclusive right to use such materials in its sole discretion without further compensation to Consultant or to any other party. Consultant shall, at Consultant's expense, provide such reports, plans, studies, documents and writings to City or any party the City may designate, upon written request.
Consultant may keep file copies of all documents prepared for City. Use of any such documents by the City for projects that are not the subject of this Agreement or for purposes beyond the scope of the Services shall be at the City's sole risk without legal liability or expense to Consultant.
Section 15. Changes and/or Extra Work.
Only the City Council may authorize extra and/or changed Services, modification of the time of completion of the Services, or additional compensation for the tasks to be performed by Consultant. Consultant expressly recognizes that other City personnel are without authorization to order extra and/or changed Services or to obligate the City to the payment of additional compensation. The failure of Consultant to secure the prior written authorization for such extra and/or changed Services shall constitute a waiver of any and all right to adjustment in the contract price due to such unauthorized Services, and Consultant thereafter shall not be entitled to any compensation whatsoever for the performance of such extra or changed Services. In the event Consultant and City agree that extra and/or changed Services are required, or that additional compensation shall be awarded to Consultant for performance of the Services under this Agreement, a supplemental agreement providing for such compensation shall be prepared and shall be executed by the Consultant and the necessary City officials before the extra and/or changed Services are provided.
Section 16. Compliance with Federal, State and Local Laws.
Consultant shall comply with all applicable federal, state and local laws, statutes, ordinances, rules and regulations affecting the Services, including without limitation laws requiring licensing and prohibiting discrimination in employment because of race, creed, color, sex, age, marital status, physical or mental disability, national origin or other prohibited bases. City shall not be responsible or liable for Consultant's failure to comply with applicable laws, statutes, ordinances, rules or regulations.
Section 17. Retention of Records.
Consultant and any subconsultants authorized by the terms of this Agreement shall keep and maintain full and complete documentation and accounting records, employees' time sheets, and correspondence pertaining to the Services, and Consultant shall make such documents available for review and/or audit by City and City's representatives at all reasonable times during performance of the Services and for at least four (4) years after completion of the Services and/or termination of this Agreement.
Item 3b.
17 Section 18. Alternative Dispute Resolution
A. Before resorting to mediation, arbitration or other legal process, the primary contacts of the parties shall meet and confer and attempt to amicably resolve any dispute arising from or relating to this Agreement subject to the following provisions. Any party desiring to meet and confer shall so advise the other party pursuant to a written notice. Within 15 days after provision of that written notice by the party desiring to meet and confer, the primary contacts for each party shall meet in person and attempt to amicably resolve their dispute. Each primary contact, or the person acting in their absence with full authority to resolve the dispute, shall attend the meeting and shall be prepared to devote an entire day thereto. If any dispute remains unresolved at the end of the meeting, any party to this Agreement shall have the right to invoke the mediation process provided for in the subparagraph B below.
B. Subject to the provisions of subparagraph A, any dispute that remains unresolved after the meet and confer shall immediately be submitted to non-binding neutral mediation, before a mutually acceptable, neutral retired judge or justice at the Sacramento Office of the Judicial Arbitration and Mediation Service ("JAMS"). If within five days after the meet and confer the parties are unable to agree upon the selection of a neutral mediator, then the first available retired judge or justice at the Sacramento office of JAMS shall serve as the neutral mediator. The parties agree to commit to at least one full day to the mediation process. Additionally, to expedite the resolution of any dispute that is not resolved by mediation, the parties agree to each bring to the neutral mediation a list of at least five neutral arbitrators, including their resumes, whose availability for an arbitration hearing within 30 days after the mediation has been confirmed.
C. If mediation is unsuccessful, before the mediation concludes, the parties shall mediate the selection of a neutral arbitrator to assist in the resolution of their dispute. If the parties are unable to agree on an arbitrator, the parties agree to submit selection of an arbitrator to the mediator, whose decision shall be binding on the parties. In that case, the mediator shall select a neutral arbitrator from the then active list of retired judges or justices at the Sacramento Office of the JAMS. The arbitration shall be conducted pursuant to the provisions of the California Arbitration Act, sections 1280-1294.2 of the California Code of Civil Procedure. In such case, the provisions of Code of Civil Procedure Section 1283.05 and 1283.1 shall apply and are hereby incorporated into this Agreement.
D. This section 18 shall survive the termination or expiration of this Agreement. If there is no Sacramento office of JAMS, then the office of JAMS closest to the City shall be used instead of a Sacramento office.
Section 19. Severability.
The provisions of this Agreement are severable. If any portion of this Agreement is held Item 3b.
18 invalid by an arbitrator or by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual written consent of the parties.
Section 20. Entire Agreement; Amendment.
This Agreement, including all exhibits hereto, constitutes the complete and exclusive expression of the understanding and agreement between the parties with respect to the subject matter hereof. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement. This Agreement may be amended or extended from time to time only by written agreement of the parties hereto.
Section 21. Time of the Essence.
Time is of the essence in the performance of the Services. The Consultant will perform its Services with due and reasonable diligence consistent with sound professional practices and shall devote such time to the performance of the Services as may be necessary for their timely completion.
Section 22. Written Notification.
Except as otherwise specified in this Agreement, any notice, demand, request, consent, approval or communications that either party desires or is required to give to the other party shall be in writing and either served personally or sent by first class mail, postage prepaid and addressed as follows. Either party may change its address by notifying the other party in writing of the change of address. Notice shall be deemed communicated within two business days from the time of mailing if mailed within the State of California as provided in this Section.
If to City: City of Colfax
33 S. Main Street
Colfax, CA 95713
If to Consultant: SCI Consulting Group
4745 Mangels Boulevard
Fairfield, CA 94534
Section 23. Execution.
This Agreement may be executed in original counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one original counterpart is signed by both parties hereto. In proving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.
Item 3b.
19 Section 24. Successors.
This Agreement shall be binding on and inure to the benefit of the respective parties hereto except to the extent of any contrary provision in this Agreement.
Section 25. Attorney's Fees.
If any party to this Agreement commences legal proceedings to enforce any of its terms or to recover damages for its breach, the prevailing party shall be entitled to recover its reasonable attorney’s fees, costs and the expenses of expert witnesses, including any such fees costs and expenses incurred on appeal.
IN WITNESS WHEREOF, the parties hereby have executed this Agreement on the day first above written:
CITY CONSULTANT
Signature: Signature:
Printed Name: Ron Walker Printed Name:
Title: City Manager Title:
Date: Date:
APPROVED AS TO FORM:
______________________________________
City Attorney
Item 3b.
20 February 14, 2024
Ron Walker
City Manager
City of Colfax
PO Box 702
Colfax, CA 95713
Re: City of Colfax: Request for Two-Year Contract Extension Dear Mr. Walker,
I am writing on behalf of SCI Consulting Group regarding our contract with the City of Colfax, which expired on February 28, 2023. As stipulated in the original contract, the agreement was for a term of three (3) years, with an option for a two (2) year extension, subject to approval by the elected body. We would like to formally request the two-year extension option outlined in our initial agreement.
SCI proposes to continue to provide the complete suite of services necessary for the successful management and oversight of the City’s local cannabis program, as fully described in our Scope of Work:
1. Application Review, Selection, and Renewal
2. Compliance Inspections
3. Local Cannabis Tax Verification Audits
We look forward to the opportunity to continue to assist the City with this important project. If you have any questions or require additional information, please do not hesitate to contact me.
I can be reached via e-mail at [email protected] or on my cell phone at (707) 208-0940.
Sincerely,
John Bliss, P.E.
President, SCI Consulting Group
4745 Mangels Blvd.
Fairfield, CA 94534
Item 3b. 21
(Page intentionally blank)
Item 3b. 22
City of Colfax Councilwoman Burruss Attending Capital to Capital (Cap to Cap) Staff Report February 28, 2024
Staff Report to City Council
FOR THE FEBRUARY 28, 2024 REGULAR CITY COUNCIL MEETING
From:
Prepared by:
Subject:
Ron Walker, City Manager
Ron Walker, City Manager
Councilwoman Burruss Attending Capital to Capital (Cap to Cap) Budget Impact Overview:
N/A: Funded: Un-funded: Amount: $5,306.00 Fund(s): 110 Summary/Background
Every year, the Sacramento Metro Chamber organizes a delegation of hundreds of area officials and business leaders to travel to Washington, D.C., and meet with federal representatives. The Capitol-to-Capital program is meant to secure funding and resources for high-priority projects in the region and raise local concerns to officials at the national level.
Cap-to-Cap helps provide a tremendous financial boost and investment to the Capital Region. And this funding — some of it to support workforce development— impacts all of our communities. The delegation has had an impact on resources around water/flood management/wildfire recovery, and so much more.
Conclusions and Findings
As a founding member of the Cap-to-Cap Wildfire team, Council Member Burruss's continued engagement amplifies the city's voice, particularly in advocating for underrepresented communities most impacted by these decisions. The delegation, scheduled from April 12th to April 17th, 2024, includes a rigorous lobbying schedule, networking events, and collaboration opportunities.
Attendance at this delegation will ensure The City of Colfax’s continued participation in advancing the city's priorities and securing government funding opportunities in the face of a consistently turbulent political landscape.
Fiscal Impacts
The requested city funding of $5,306.00 will cover the program fee, lodging, and airfare essential for Council Member Burruss's participation. Council Member Burruss will personally invest approximately $4,677.92 to cover other necessary accommodations, including employment leave, ground transportation, mileage, parking, luggage, and per diem expenses.
RECOMMENDED ACTION: By Motion, allocate funds for Councilmember Burruss to attend the annual Capital to Capital Program in Washington D.C.
Item 3c. 23
(Page intentionally blank)
Item 3c. 24
City of Colfax Update Authorized Representative to sign for SWRCB Sewer Collection System and Wastewater Treatment Plant
Improvement Grant
Staff Report February 28, 2024
Staff Report to City Council
FOR THE FEBRUARY 28, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Shanna Stahl, Administrative Services Officer Subject: Update the Authorized Representative to sign agreements and funding requests for the State Water Resources Control Board Sewer Collection system and Wastewater Treatment Plant Improvements Grant
Budget Impact Overview:
N/A: Funded: Un-funded: Amount: Fund(s):
Summary/Background
The City of Colfax entered into a Clean Water State Revolving Fund (CWSRF) grant funding agreement No.
D2101007 (Funding Agreement) for Sewer Collection System and Wastewater Treatment Plant Improvements.
Grant applicants must submit a resolution or ordinance adopted by its governing board authorizing the designation of an Authorized Representative (by title) to sign the CWSRF financing agreement and make other certifications. This resolution is required by SWRCB when submitting Planning Applications or funding requests for the Clean Water State Revolving Funds. All major milestones, such as consultant contracts and other expenditure authorizations related to the projects will be presented to the Council separately for approval.
Recommendation
Staff recommends adopting a resolution authorizing the City Manager to execute documents on behalf of the city for planning, design, construction and funding of a City of Colfax Sewer Collection System and Wastewater Treatment Plant Improvement grant.
Attachments:
1. Resolution __-2024
RECOMMENDED ACTION: Adopt Resolution __-2024 authorizing the City Manager to sign and file agreements and funding requests for the State Water Resources Control Board Sewer Collection System and Wastewater Treatment Plant Improvements Grant.
Item 3d. 25
Financial Assistance Application Page 13 of 14 Financial Security Package (Construction) (Rev. 12/2019) Clean Water State Revolving Fund
Water Recycling Funding Program
AUTHORIZING RESOLUTION/ORDINANCE
RESOLUTION NO: _____________________
WHEREAS the City needs to update the Authorized Representative to sign on City of Colfax_Agreement NO.
D2101007_Project No. C-06-8479-210_
RESOLVED BY THE City Council OF THE City of Colfax (the “Entity”), AS FOLLOWS:
The City Manager (the “Authorized Representative”) or designee is hereby authorized and directed to sign and file, for and on behalf of the Entity, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board for the planning, design, and construction of Sewer Collection system and Wastewater Treatment Plant Improvements (the “Project”).
This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto.
The Authorized Representative, or his/her designee, is designated to represent the Entity in carrying out the Entity’s responsibilities under the financing agreement, including certifying disbursement requests on behalf of the Entity and compliance with applicable state and federal laws.
CERTIFICATION
I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the ___________________________________________________________ held (insert name of Governing Board of the Entity)
on ______________________.
(Date)
(Name, Signature, and Seal of the Clerk or Authorized Record Keeper of the Governing Board of the Agency) Item 3d.
26 City of Colfax Cash Summary – January 2024
Staff Report February 28, 2024
Staff Report to City Council
FOR THE FEBRUARY 28, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Shanna Stahl – Administrative Services Officer Subject: Cash Summary – January 2024
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 January 2024. Some monthly highlights are listed below:
• January revenues included:
o Allocation for Sales Tax revenues reported/paid to the State for the month of November 2023 (two-month lag).
o Received first fiscal year 2023-2024 allocation (55%) of annual property tax and sewer delinquent charges from Placer County (two-month lag).
o Received first fiscal year 2023-2024 allocation (50%) of annual allocation for Local Transportation Funds (LTF) and STA funds from Placer County Transportation Planning Agency. • January 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 January are primarily due to the timing of funding allocations and reimbursements:
o Fund 218 – Support Law Enforcement - Fiscal year revenues for the COPS (Citizens Options for Public Safety) grant will be funded throughout the fiscal year. 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 submitted partial payment in January.
Allocations and transfers will be recorded with final fiscal year accounting processes. o Fund 300 – Corporation Yard – This is the project for installation of a metal storage building at the Corporation Yard. Funded by General Fund 100.
RECOMMENDED ACTION: Accept and File.
Item 3e. 27
City of Colfax Cash Summary – January 2024
Staff Report February 28, 2024
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. City restricted Streets funds will also be used on this project as the City match.
o Fund 367 – SB2 Planning Grant – Final reimbursement for project is pending payment. o Fund 376 – Downtown Streetscape – This project is primarily (89%) funded with grant funds on a reimbursement basis. Reimbursement requests are submitted on a quarterly basis. The balance of funding (11%) will be a City General Fund match. This project should be computed in March and final accounting will be completed by end of fiscal year. 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 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 February include:
o Revenues
Allocation for Sales Tax revenues reported/paid to the State for the month of December 2023 (two-month lag).
Capital project reimbursements.
Property Tax allocation for December 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 3e. 28
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 $4,162 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 - January 2024
General Fund Reserved Cash Analysis
(Dollars in Thousands)
Fiscal Year 2023-24 >>
Item 3e. 29
Balance
12/31/23 Revenues In* Expenses Out* Transfers Balance 1/31/24 US Bank $ 184,712.86 $ 862,444.19 $ (1,103,618.61) $ 150,000.00 $ 93,538.44 LAIF $ 6,897,059.62 $ 76,458.14 $ - $ (150,000.00) $ 6,823,517.76 Total Cash - General Ledger $ 7,081,772.48 $ 938,902.33 $ (1,103,618.61) $ - $ 6,917,056.20 Petty Cash (In Safe) $ 300.00 $ 300.00
Total Cash $ 7,082,072.48 $ 938,902.33 $ (1,103,618.61) $ - $ 6,917,356.20 Change in Cash Account Balance - Total $ (164,716.28)
Attached Reports:
1. Cash Transactions Report (By Individual Fund)
2. Check Register Report (Accounts Payable) $ (1,002,338.86) Cash Receipts $ 654,761.43
Payroll Checks and Tax Deposits $ (97,305.61)
Utility Billings - Receipts $ 203,708.62
LAIF Interest $ 76,458.14
Void CK - Reissued July Check $ -
$ (164,716.28) $ (0.00)
*Does not include transfers between funds
Prepared by:
Shanna Stahl, Administrative Services Officer
Reviewed by:
Ron Walker, City Manager
City of Colfax
Cash Summary
January 31, 2024
Shanna Stahl
Ron Walker
Item 3e. 30
Beginning
Balance
Debit
Revenues
Credit
(Expenditures)
Ending
Balance
Fund Type: 1.11 - General Fund - Unassigned
Fund: 100 - General Fund $ 3,576,638.54 $ 518,808.42 $ (140,308.48) $ 3,955,138.48 Fund: 120 - Land Development Fees $ 200,408.10 $ - $ (6,868.24) $ 193,539.86 Fund: 200 - Cannabis Application $ 14,607.91 $ 1,086.91 $ (1,500.00) $ 14,194.82 Fund Type: 1.11 - General Fund - Unassigned $ 3,791,654.55 $ 519,895.33 $ (148,676.72) $ 4,162,873.16 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 853,619.87 $ $ 0.01 $ (8,859.82) $ 844,760.06 Fund Type: 1.14 - General Fund - Restricted $ 916,674.13 $ 0.01 $ (8,859.82) $ 907,814.32 Fund Type: 1.24 - Special Rev Funds - Restricted
Fund: 210 - Mitigation Fees - Roads $ 146,045.17 $ 1,448.54 $ - 147,493.71 $ Fund: 211 - Mitigation Fees - Drainage $ 5,581.98 $ 55.37 $ - $ 5,637.35 Fund: 212 - Mitigation Fees - Trails $ 77,544.77 $ 769.12 $ - $ 78,313.89 Fund: 213 - Mitigation Fees - Parks/Rec $ 192,703.15 $ 1,911.31 $ - 194,614.46 $ Fund: 214 - Mitigation Fees - City Bldgs $ 104,755.84 $ 1,039.01 $ - 105,794.85 $ Fund: 215 - Mitigation Fees - Vehicles $ 22,878.50 $ 226.92 $ - $ 23,105.42 Fund: 217 - Mitigation Fees - DT Parking $ 35,297.38 $ 350.10 $ - $ 35,647.48 Fund: 218 - Support Law Enforcement $ (16,975.29) $ 16,204.85 $ - $ (770.44) Fund: 244 - CDBG Program Inc - ME Lending $ 503.08 $ 4.99 $ - $ 508.07 Fund: 250 - Streets - Roads/Transportation $ (121,478.67) $ 88,848.00 $ (19,582.09) $ (52,212.76) Fund: 253 - Gas Taxes $ 17,572.71 $ 4,412.39 $ (1,420.51) $ 20,564.59 Fund: 257 - Street /Road - Transit Capital $ 48,346.04 $ - $ - $ 48,346.04 Fund: 258 - Road Maintenance - SB1/RSTBG $ 239,130.46 $ 5,965.24 $ - 245,095.70 $ Fund: 270 - Beverage Container Recycling $ 19,766.28 $ 196.05 $ - $ 19,962.33 Fund: 280 - Oil Recycling $ 3,897.48 $ 38.66 $ - $ 3,936.14 Fund: 290 - SB1383 Implementation Grant $ 17,429.33 $ 184.78 $ (2,000.00) $ 15,614.11 Fund: 292 - Fire Department Capital Funds $ 96,515.66 $ 957.29 $ - $ 97,472.95 Fund: 342 - Fire Construction - Mitigation $ 80,202.91 $ 2,541.56 $ - $ 82,744.47 Fund: 343 - Recreation Construction $ 80,203.39 $ 2,541.56 $ - $ 82,744.95 Fund: 367 - SB2 - Planning Grant $ (18,389.53) $ - $ (7,561.87) $ (25,951.40) Fund: 376 - Downtown Streetscape $ (46,108.25) $ - $ (22,755.70) $ (68,863.95) Fund: 378 - Zoning Code Update $ (2,802.71) $ - $ - $ (2,802.71) Fund Type: 1.24 - Special Rev Funds - Restricted$ 982,619.68 $ 127,695.74 $ (53,320.17) $ 1,056,995.25 Fund Type: 1.34 - Capital Projects - Restricted
Fund: 300 - GF Capital Projects $ (12,899.52) $ - $ - $ (12,899.52) Fund: 358 - CDBG Pavement $ (333,963.84) $ - $ (45,320.02) $ (379,283.86) Fund Type: 1.34 - Capital Projects - Restricted $ (346,863.36) $ - $ (45,320.02) $ (392,183.38) Fund Type: 2.11 - Enterprise Funds
Fund: 560 - Sewer $ 1,773,330.31 $ 212,138.81 $ (105,926.36) $ 1,879,542.76 Fund: 561 - Sewer Liftstations $ 658,754.85 $ 19,779.83 $ (35,918.94) $ 642,615.74 Fund: 563 - Wastewater Treatment Plant $ 1,341,336.33 $ 57,630.39 $ - 1,398,966.72 $ Fund: 564 - Sewer Connections $ (74,509.67) $ - $ - $ (74,509.67) Fund: 575 - WWTP Construction Grant $ (1,935,349.26) $ - (687,192.03) $ $ (2,622,541.29) Fund: 577 - Capital Projects $ (7,229.51) $ - $ - $ (7,229.51) Fund: 590 - Sewer Consolidation Planning $ (22,179.66) $ - $ (18,404.55) $ (40,584.21) Fund Type: 2.11 - Enterprise Funds - Unassigned$ 1,734,153.39 $ 289,549.03 $ (847,441.88) $ 1,176,260.54 Fund Type: 9.0 - CLEARING ACCOUNT
Fund: 998 - PAYROLL CLEARING FUND $ 3,534.09 $ 1,762.22 $ 5,296.31 Fund Type: 9.0 - CLEARING ACCOUNT $ 3,534.09 $ 1,762.22 $ - $ 5,296.31 Grand Totals: $ 7,081,772.48 $ 938,902.33 $ (1,103,618.61) $ 6,917,056.20 City of Colfax
Cash Transactions Report - January 2024
Item 3e. 31
CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:
Vendor
Number Vendor Name Check Description
US BANK Page: 1
Time: 2:15 pm
Date: 02/01/2024
Void/Stop
Date
Reconcile
Date
US BANK Checks
60181 01/05/24 Reconciled 01/31/24 03141 CALPERS HEALTH PREMIUMS JAN 2024 13,477.95 60182 01/17/24 Reconciled 01/31/24 01270 ADAMS ASHBY GROUP, INC. CDBG GEN ADMIN NOV 2023 5,000.00 60183 01/17/24 Reconciled 01/31/24 01270 ADAMS ASHBY GROUP, INC. CDBG LABOR COMP NOV 2023 5,500.00 ALHAMBRA & SIERRA 146.42
SPRINGS
60184 01/17/24 Reconciled 01/31/24 01414 WATER
60185 01/17/24 Reconciled 01/31/24 01448 AMERIGAS - COLFAX CORP YARD PROPANE 291.13 60186 01/17/24 Reconciled 01/31/24 01448 AMERIGAS - COLFAX DEPOT PROPANE 314.22 60187 01/17/24 Reconciled 01/31/24 01448 AMERIGAS - COLFAX DEPOT PROPANE 87.20 60188 01/17/24 Reconciled 01/31/24 01448 AMERIGAS - COLFAX DEPOT PROPANE 132.12 AQUA SIERRA CONTROLS 1,925.37
INC.
60189 01/17/24 Reconciled 01/31/24 01650 LS 2 RPR
60190 01/17/24 Reconciled 01/31/24 01766 AT&T MOBILITY CITY CELL PHONES 899.21 60191 01/17/24 Reconciled 01/31/24 657 AUBURN TROPHIES ETC. NAME PLATES 77.22 60192 01/17/24 Reconciled 01/31/24 02054 BANNER BANK I&I CONST DEC 2023 RETENTION 58,257.47 60193 01/17/24 Reconciled 01/31/24 2819 BIG BRAND TIRE & SERVICE OIL CHANGE 118.13 BUREAU VERITAS NORTH 437.50
AMERICA
60194 01/17/24 Reconciled 01/31/24 02901 ALGAE PROJECT REVIEW DEC 2023 BUREAU VERITAS NORTH 1,047.50
AMERICA
60195 01/17/24 Reconciled 01/31/24 02901 PLAN CHECK
60196 01/17/24 Reconciled 01/31/24 03121 CALIFORNIA BUILDING Q4 2023 GREEN FEES COLLECTED 13.50 60197 01/17/24 Reconciled 01/31/24 8062 CATHERINE HANSFORD RATE STUDY DEC 2023 1,892.50 60198 01/17/24 Reconciled 01/31/24 3425 CINTAS UNIFORM SVCS DEC 2023 430.65 60199 01/17/24 Reconciled 01/31/24 03446 CITY OF FOSTER CITY ACCTING TECH JOB POSTING 567.00 60200 01/17/24 Reconciled 01/31/24 3475 CLARK PEST CONTROL PEST CONTROL JAN 2024 508.00 60201 01/17/24 Reconciled 01/31/24 3494 COLANTUONO, HIGHSMITH & LEGAL MATTER DEC 2023 1,528.95 COMMERCIAL PUMP 11,753.64
SERVICE, INC
60202 01/17/24 Reconciled 01/31/24 03562 LS PUMP RPR
CRANMER ENGINEERING, 640.00
INC.
60203 01/17/24 Reconciled 01/31/24 03650 LANDFILL MONITORING DEC 2023 60204 01/17/24 Printed 04234 DE LAGE LANDEN FINANCIAL COPY MACH LEASE JAN 2024 472.79 DIVISION OF STATE 9.20
ARCHITECT
60205 01/17/24 Reconciled 01/31/24 04532 SB1186 FEES Q4 2023 60206 01/17/24 Printed 6203 FENNEMORE CRAIG, PC LEGAL MATTER 29.00 FRONTIER 255.30
COMMUNICATIONS
60207 01/17/24 Reconciled 01/31/24 06278 WWTP PHONE
60208 01/17/24 Reconciled 01/31/24 7798 G&T TRUCK REPAIR SNOW PLOW RPR 2,885.97 60209 01/17/24 Reconciled 01/31/24 7223 GEOCON CONSULTANTS INC. I&I CONST TESTING NOV 2023 955.00 60210 01/17/24 Reconciled 01/31/24 14859 GHD INC. ROAD REHAB DESIGN OCT 2023 32,017.52 60211 01/17/24 Reconciled 01/31/24 07570 GRAINGER WWTP LIFE RINGS 1,257.66 60212 01/17/24 Reconciled 01/31/24 07570 GRAINGER WWTP SUPPLIES 149.87 HANSEN BROS. 33.33
ENTERPRISES
60213 01/17/24 Reconciled 01/31/24 08070 SAND BAG SAND
60214 01/17/24 Reconciled 01/31/24 08170 HILLS FLAT LUMBER CO SUPPLIES 700.52 HINDERLITER, DE LLAMAS & 601.29
ASSOC
60215 01/17/24 Reconciled 01/31/24 08200 Q2 23/24 SALES TAX AUDIT HOME DEPOT CREDIT 512.92
SERVICES
60216 01/17/24 Reconciled 01/31/24 08501 SUPPLIES
60217 01/17/24 Reconciled 01/31/24 08660 HUNT AND SONS, INC. FUEL 794.67 60218 01/17/24 Reconciled 01/31/24 08660 HUNT AND SONS, INC. FUEL 619.73 60219 01/17/24 Reconciled 01/31/24 08660 HUNT AND SONS, INC. FUEL 638.82 60220 01/17/24 Reconciled 01/31/24 8661 HYDROCOMPLIANCE WWTP QSP SVCS 3,200.00 60221 01/17/24 Reconciled 01/31/24 23101 LARRY WALKER ASSOCIATES NPDES PERMIT ASS NOV 2023 1,301.25 MANAGEMENT ADVISORY 7,007.19
SERVICES
60222 01/17/24 Reconciled 01/31/24 13191 PLANNING SVCS DEC 2023 60223 01/17/24 Reconciled 01/31/24 19390 MAR-VAL'S SIERRA MARKET WATER 17.38 60224 01/17/24 Reconciled 01/31/24 13239 MCGUIRE & HESTER I&I CONST DEC 2023 524,317.26 60225 01/17/24 Reconciled 01/31/24 013278 MNJ ADVISORS INC. CITY MANAGER SVCS DEC 2023 4,925.54 60226 01/17/24 Reconciled 01/31/24 18400 NAPA AUTO PARTS SUPPLIES 83.61 PELLETREAU, ALDERSON & 13,376.35
CABRAL
60227 01/17/24 Reconciled 01/31/24 16011(2) LEGAL SVCS DEC 2023 60228 01/17/24 Reconciled 01/31/24 16035 PG&E ELECTRICITY 23,693.59 Item 3e. 32
CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:
Vendor
Number Vendor Name Check Description
US BANK Page: 2
Time: 2:15 pm
Date: 02/01/2024
Void/Stop
Date
Reconcile
Date
US BANK Checks
PLACER COUNTY 892.00
ENVIRONMENTAL
60229 01/17/24 Reconciled 01/31/24 16165 LANDFILL MONITORING Q2 23/24 PLACER COUNTY EXECUTIVE 19,891.88
OFFICE
60230 01/17/24 Reconciled 01/31/24 16161 FIRE SVCS Q2 FY 23/24 60231 01/17/24 Reconciled 01/31/24 03580 PLACER COUNTY HHS FIELD & ANIMAL SVCS Q3 23/24 6,513.00 60232 01/17/24 Reconciled 01/31/24 16821 PSOMAS I&I CONST MAN NOV 2023 48,857.00 60233 01/17/24 Reconciled 01/31/24 16040 PURCHASE POWER POSTAGE 503.50 60234 01/17/24 Reconciled 01/31/24 19065 SCI CONSULTING GROUP CANNABIS COMPLIANCE 2023 1,500.00 SCORE - SMALL CITIES 19,841.84
ORGANIZED
60235 01/17/24 Printed 19070 WORKERS COMP Q3 FY 23/24
60236 01/17/24 Reconciled 01/31/24 01790 SIERRA OFFICE PRODUCTS OFFICE SUPPLIES 150.43 60237 01/17/24 Reconciled 01/31/24 19396 SIERRA SAFETY COMPANY ST SIGNS SNOW ON CANYON 586.50 STATE BOARD OF 952.00
EQUALIZATION
60238 01/17/24 Reconciled 01/31/24 19650 Q4 2023 SELF ASSESSED SALES TA 60239 01/17/24 Reconciled 01/31/24 19743 WILLIAM STOCKWIN JAN 2024 COLFAX CONN EDITING 300.00 60240 01/17/24 Reconciled 01/31/24 19696 SWRCB I&I ANNUAL PERMIT 1,252.00 TROJAN TECHNOLOGIES 48.10
GROUP
60241 01/17/24 Reconciled 01/31/24 20553 WWTP SUPPLIES
60242 01/17/24 Reconciled 01/31/24 21452 EMMANUEL URSU PLANNING SVCS NOV 2023 9,468.79 US BANK CORPORATE PMT 3,144.22
SYSTEM
60243 01/17/24 Reconciled 01/31/24 21560 SUPPLIES
60244 01/17/24 Reconciled 01/31/24 21500 USA BLUE BOOK, INC LAB SUPPLIES 921.99 VAN GRONINGEN & 4,867.50
ASSOCIATES
60245 01/17/24 Reconciled 01/31/24 22106 FINANCIAL SVCS MAY 2023 60246 01/17/24 Reconciled 01/31/24 22134 VISION QUEST TECH SUPPORT FEB 2024 3,800.00 60247 01/17/24 Reconciled 01/31/24 23169 WAVE BUSINESS SOLUTIONS CITY HALL PHONE 215.90 60248 01/17/24 Reconciled 01/31/24 23169 WAVE BUSINESS SOLUTIONS CITY HALL INTERNET 159.90 60249 01/17/24 Reconciled 01/31/24 23169 WAVE BUSINESS SOLUTIONS DEPOT PHONE 18.77 60250 01/17/24 Reconciled 01/31/24 23301 WESTERN PLACER WASTE SLUDGE REMOVAL DEC 2023 1,289.15 60251 01/17/24 Reconciled 01/31/24 23451 WOOD RODGERS SEWER CONSOLIDATION OCT 2023 7,636.80 60252 01/17/24 Reconciled 01/31/24 23451 WOOD RODGERS SSMP UPDATE OCT 2023 97.50 60253 01/17/24 Reconciled 01/31/24 23451 WOOD RODGERS WWTP CONST GRANT OCT 2023 21,662.60 60254 01/17/24 Reconciled 01/31/24 23451 WOOD RODGERS SEWER CONSOLIDATION NOV 2023 7,192.75 60255 01/17/24 Reconciled 01/31/24 23451 WOOD RODGERS WWTP CONST GRANT NOV 2023 12,168.75 60256 01/29/24 Printed 1161 49ER WATER SERVICES MONTHLY TESTING NOV 2023 1,763.00 60257 01/29/24 Printed 01448 AMERIGAS - COLFAX SHERIFF PROPANE 1,053.28 60258 01/29/24 Printed 01448 AMERIGAS - COLFAX DEPOT PROPANE 267.88 60259 01/29/24 Printed 01448 AMERIGAS - COLFAX DEPOT PROPANE 129.06 60260 01/29/24 Printed 01448 AMERIGAS - COLFAX DEPOT PROPANE 92.32 60261 01/29/24 Printed 01448 AMERIGAS - COLFAX CITY HALL PROPANE 1,529.61 60262 01/29/24 Printed 01448 AMERIGAS - COLFAX SHERIFF PROPANE 62.70 60263 01/29/24 Printed 01448 AMERIGAS - COLFAX DEPOT PROPANE 92.88 60264 01/29/24 Printed 657 AUBURN TROPHIES ETC. PLAQUE 37.54 BUREAU VERITAS NORTH 5,040.00
AMERICA
60265 01/29/24 Printed 02901 BLDG OFFICIAL SVCS DEC 2023 60266 01/29/24 Printed 03401 CHOICE BUILDER PREMIUMS FEB 2024 841.46 CRANMER ENGINEERING, 231.00
INC.
60267 01/29/24 Printed 03650 GEOTRACKER
60268 01/29/24 Printed 04592 DACOMM WWTP INTERNET 103.45 60269 01/29/24 Printed 04234 DE LAGE LANDEN FINANCIAL COPY MACH LEASE FEB 2024 472.79 EOSI - ENVIRONMENT 9,170.95
OPERATING
60270 01/29/24 Printed 05221 WWTP CHEMICALS
60271 01/29/24 Printed 6203 FENNEMORE CRAIG, PC LEGAL MATTER 66.31 FRONTIER 269.37
COMMUNICATIONS
60272 01/29/24 Printed 06278 WWTP PHONE
60273 01/29/24 Printed 14859 GHD INC. ENG SVCS NOV 2023 17,337.50 60274 01/29/24 Printed 07570 GRAINGER HOUR METER 29.52
60275 01/29/24 Printed 08086 HBE RENTALS SNAKE RENTAL 115.00 60276 01/29/24 Printed 08660 HUNT AND SONS, INC. FUEL 759.68 60277 01/29/24 Printed 09540 INTERSTATE SALES CRACK FILLER 304.59 Item 3e. 33
CITY OF COLFAX
Check Register Report
Check
Date
Check
Number
Status Amount
BANK:
Vendor
Number Vendor Name Check Description
US BANK Page: 3
Time: 2:15 pm
Date: 02/01/2024
Void/Stop
Date
Reconcile
Date
US BANK Checks
60278 01/29/24 Printed 09540 INTERSTATE SALES SIGNS - S AUBURN ST 123.34 LAWRENCE & ASSOCIATES 2,821.65
INC
60279 01/29/24 Printed 12180 LANDFILL MONITORING DEC 2023 LEAGUE OF CALIFORNIA 1,714.00
CITIES
60280 01/29/24 Printed 12200 MEMBERSHIP DUES 2024
NORTHERN CALIFORNIA 92.44
GLOVE
60281 01/29/24 Printed 14356 PW SUPPLIES
NORTHERN CALIFORNIA 108.75
GLOVE
60282 01/29/24 Printed 14356 PW SUPPLIES
60283 01/29/24 Printed 16300 PCWA -PLACER COUNTY WATER 1,048.43 60284 01/29/24 Printed 16751 PFADT, INC. DEPOT LIGHT RPR 208.22 60285 01/29/24 Printed 16040A PITNEY BOWES POSTAGE MACH INK 97.91 60286 01/29/24 Printed 16052 PLACEWORKS GEN PLAN UPDATE 4,999.73 60287 01/29/24 Printed 17951 R3 CONSULTING GROUP SB1383 FEASIBILITY STUDY 2,000.00 60288 01/29/24 Printed 18193 RECOLOGY AUBURN PLACER 55% TEETER 23/24 6,787.87 60289 01/29/24 Printed 18496 RIVER CITY RENTALS SNAKE RENTAL CORP YARD 100.00 60290 01/29/24 Printed 19396 SIERRA SAFETY COMPANY DEPOT PARKING SIGNS 194.13 STS AUTOMATION 3,128.69
INCORPORATED
60291 01/29/24 Printed 19762 WWTP METER
VULCAN MATERIALS 223.08
COMPANY
60292 01/29/24 Printed 22240 ASPHALT PATCH
VULCAN MATERIALS 237.56
COMPANY
60293 01/29/24 Printed 22240 ASPHALT PATCH
60294 01/29/24 Printed 23169 WAVE BUSINESS SOLUTIONS CORP YARD INTERNET 67.87 60295 01/29/24 Printed 23169 WAVE BUSINESS SOLUTIONS CITY HALL INTERNET 159.90 60296 01/29/24 Printed 18883 WAXIE SANITARY SUPPLY SUPPLIES 592.37 60297 01/29/24 Printed 23450 WINNER CHEVROLET, INC. PW VEHICLE RPR 346.57 60298 01/29/24 Printed 23451 WOOD RODGERS SEWER CONSOLIDATION DEC 2023 3,575.00 60299 01/29/24 Printed 23451 WOOD RODGERS WWTP CONST GRANT DEC 2023 12,351.45 60302 01/30/24 Printed 3468 CIVICWELL DOWNTOWN STREETSCAPE NOV 23 22,755.70 Total Checks: 120 Checks Total (excluding void checks): 1,002,338.86 Total Payments: 120 Bank Total (excluding void checks): 1,002,338.86 Total Payments: 120 Grand Total (excluding void checks): 1,002,338.86 Item 3e. 34
City of Colfax Quarterly Investment Report – Quarter Ended 12/31/2023 Staff Report February 28, 2024
Staff Report to City Council
FOR THE FEBRUARY 28, 2024 REGULAR CITY COUNCIL MEETING
From:
Prepared by:
Subject:
Ron Walker, City Manager
Shanna Stahl, Administrative Services Officer
Quarterly Investment Report – Quarter ended December 31, 2023 Budget Impact Overview:
N/A: √ Funded: Un-funded: Amount: Fund(s):
California Government Code Section 53646 and the City of Colfax Investment Policy require a quarterly investment report be submitted to the City Council. Such report shall include at least the following information:
• Types of Investments;
• Name of the institution in which funds are invested or deposited; • Date of Maturity, if applicable;
• Par and dollar amount investment for all securities;
• Percent distribution of each type of investment or deposit; current market value as of the date of the report, including source of the valuation except those under LAIF; • Rate of interest;
• Average weighted yield of all investments;
• A statement relating the report to the City’s Investment Policy; and • A statement that there are sufficient funds to meet the City’s next six months of financial obligations.
The current practice for cash management is to maintain an operating balance between $75,000 and $150,000 in the City’s US Bank Corporate checking account. This account accumulates Earnings Credits based on the account balance which offset/reduce monthly service charges. City funds in excess of the targeted operating balance are transferred to the State of California Local Agency Investment Fund (LAIF) on a weekly basis. The checking account balance may be reported at an amount higher than the target balance by the Bank due to the timing of City checks being processed by vendors/service providers.
The City’s investment policy is authorized under the California Government Code, section 53600, et. seq. as it applies to the investment of public funds. The Government Code governs the City’s allowable investments, and the lengths of those investments. Our investment policy dictates that the City should have liquid short term securities to meet six months of financial obligations. The budget for fiscal year 2023-2024 reflects just over $4.9M in annual operating expenditures; therefore, our target for liquid short-term securities would be $2.45M.
The attached schedule Analysis of Treasury Investment Pool satisfies the State’s reporting requirements.
Additionally, we have determined:
• The investments held at December 31, 2023 conform to the City Investment Policy adopted by Resolution 29-2014.
• The composite yield of the City’s investment pool (US Bank and LAIF) to be the rate of 3.60% for the quarter ended December 31, 2023.
• There are sufficient funds on deposit to meet all anticipated City expenditures for the period January 1, 2024, through June 30, 2024.
RECOMMENDED ACTION: Accept and File
Item 3f. 35
City of Colfax Quarterly Investment Report – Quarter Ended 12/31/2023 Staff Report February 14, 2024
Historically, due to fluctuations in fund balances, investment opportunities outside the corporate checking and LAIF accounts have been somewhat limited. Staff will continue to review for opportunities, but at this time will continue with the current investment structure.
Attachments:
1. Analysis of Treasury Investment Pool
2. State of California – PMIA and LAIF Performance Report (QE 12/31/2023)
3. State of California – PMIA Average Monthly Effective Yields
4. Resolution 29-2014
Item 3f. 36
City of Colfax
Analysis of Treasury Investment Pool
Quarterly Analysis - FY2023-2024
Report Date: 12/31/23
Type of Investment Financial Institution
Date of
Maturity
Investment
Amount
% of Total
Investment
Average
Investment
Yield
Investment Fund State Local Agency Investment Fund (LAIF) N/A $ 6,897,060 94% 3.81% Corporate Checking US Bank N/A $ 417,074 6% 0.16%
Total Investment Pool $ 7,314,133 100% 3.60%
Type of Investment Financial Institution
Date of
Maturity
Investment
Amount
% of Total
Investment
Average
Investment
Yield
Investment Fund State Local Agency Investment Fund (LAIF) N/A $ 7,641,854 95% 3.42% Corporate Checking US Bank N/A $ 385,570 5% 0.16%
Total Investment Pool $ 8,027,424 100% 3.30%
Quarter Ended 12/31/2023
Quarter Ended 09/30/2023
Item 3f. 37
December 3.929
November 3.843
October 3.670
September 3.534
August 3.434
July 3.305**
PMIA Average Life(1): 230
LAIF Fair Value Factor(1): 0.993543131
PMIA Daily(1): 3.96
PMIA Quarter to Date(1): 3.81
LAIF Apportionment Rate(2): 4.00
LAIF Earnings Ratio(2): 0.00010932476863589
LAIF Administrative Cost(1)*: 0.29
Treasuries
61.22%
Agencies
21.44%
Certificates of
Deposit/Bank Notes
7.72%
Time
Deposits
3.34%
Commercial
Paper
5.71%
Corporate
Bonds
0.36%
Loans
0.21%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year. ** Revised
Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 1/17/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 12/31/23
Chart does not include $2,164,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
12/31/23
$158.0 billion
Item 3f. 38
PMIA Average Monthly Effective Yields
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1983 10.251 9.887 9.688 9.868 9.527 9.600 9.879 10.076 10.202 10.182 10.164 10.227 1984 10.312 10.280 10.382 10.594 10.843 11.119 11.355 11.557 11.597 11.681 11.474 11.024 1985 10.579 10.289 10.118 10.025 10.180 9.743 9.656 9.417 9.572 9.482 9.488 9.371 1986 9.252 9.090 8.958 8.621 8.369 8.225 8.141 7.844 7.512 7.586 7.432 7.439 1987 7.365 7.157 7.205 7.044 7.294 7.289 7.464 7.562 7.712 7.825 8.121 8.071 1988 8.078 8.050 7.945 7.940 7.815 7.929 8.089 8.245 8.341 8.397 8.467 8.563 1989 8.698 8.770 8.870 8.992 9.227 9.204 9.056 8.833 8.801 8.771 8.685 8.645 1990 8.571 8.538 8.506 8.497 8.531 8.538 8.517 8.382 8.333 8.321 8.269 8.279 1991 8.164 8.002 7.775 7.666 7.374 7.169 7.098 7.072 6.859 6.719 6.591 6.318 1992 6.122 5.863 5.680 5.692 5.379 5.323 5.235 4.958 4.760 4.730 4.659 4.647 1993 4.678 4.649 4.624 4.605 4.427 4.554 4.438 4.472 4.430 4.380 4.365 4.384 1994 4.359 4.176 4.248 4.333 4.434 4.623 4.823 4.989 5.106 5.243 5.380 5.528 1995 5.612 5.779 5.934 5.960 6.008 5.997 5.972 5.910 5.832 5.784 5.805 5.748 1996 5.698 5.643 5.557 5.538 5.502 5.548 5.587 5.566 5.601 5.601 5.599 5.574 1997 5.583 5.575 5.580 5.612 5.634 5.667 5.679 5.690 5.707 5.705 5.715 5.744 1998 5.742 5.720 5.680 5.672 5.673 5.671 5.652 5.652 5.639 5.557 5.492 5.374 1999 5.265 5.210 5.136 5.119 5.086 5.095 5.178 5.225 5.274 5.391 5.484 5.639 2000 5.760 5.824 5.851 6.014 6.190 6.349 6.443 6.505 6.502 6.517 6.538 6.535 2001 6.372 6.169 5.976 5.760 5.328 4.958 4.635 4.502 4.288 3.785 3.526 3.261 2002 3.068 2.967 2.861 2.845 2.740 2.687 2.714 2.594 2.604 2.487 2.301 2.201 2003 2.103 1.945 1.904 1.858 1.769 1.697 1.653 1.632 1.635 1.596 1.572 1.545 2004 1.528 1.440 1.474 1.445 1.426 1.469 1.604 1.672 1.771 1.890 2.003 2.134 2005 2.264 2.368 2.542 2.724 2.856 2.967 3.083 3.179 3.324 3.458 3.636 3.808 2006 3.955 4.043 4.142 4.305 4.563 4.700 4.849 4.946 5.023 5.098 5.125 5.129 2007 5.156 5.181 5.214 5.222 5.248 5.250 5.255 5.253 5.231 5.137 4.962 4.801 2008 4.620 4.161 3.777 3.400 3.072 2.894 2.787 2.779 2.774 2.709 2.568 2.353 2009 2.046 1.869 1.822 1.607 1.530 1.377 1.035 0.925 0.750 0.646 0.611 0.569 2010 0.558 0.577 0.547 0.588 0.560 0.528 0.531 0.513 0.500 0.480 0.454 0.462 2011 0.538 0.512 0.500 0.588 0.413 0.448 0.381 0.408 0.378 0.385 0.401 0.382 2012 0.385 0.389 0.383 0.367 0.363 0.358 0.363 0.377 0.348 0.340 0.324 0.326 2013 0.300 0.286 0.285 0.264 0.245 0.244 0.267 0.271 0.257 0.266 0.263 0.264 2014 0.244 0.236 0.236 0.233 0.228 0.228 0.244 0.260 0.246 0.261 0.261 0.267 2015 0.262 0.266 0.278 0.283 0.290 0.299 0.320 0.330 0.337 0.357 0.374 0.400 2016 0.446 0.467 0.506 0.525 0.552 0.576 0.588 0.614 0.634 0.654 0.678 0.719 2017 0.751 0.777 0.821 0.884 0.925 0.978 1.051 1.084 1.111 1.143 1.172 1.239 2018 1.350 1.412 1.524 1.661 1.755 1.854 1.944 1.998 2.063 2.144 2.208 2.291 2019 2.355 2.392 2.436 2.445 2.449 2.428 2.379 2.341 2.280 2.190 2.103 2.043 2020 1.967 1.912 1.787 1.648 1.363 1.217 0.920 0.784 0.685 0.620 0.576 0.540 2021 0.458 0.407 0.357 0.339 0.315 0.262 0.221 0.221 0.206 0.203 0.203 0.212 2022 0.234 0.278 0.365 0.523 0.684 0.861 1.090 1.276 1.513 1.772 2.007 2.173 2023 2.425 2.624 2.831 2.870 2.993 3.167 3.305* 3.434 3.534 3.670 3.843 3.929 * Revised
Item 3f. 39
City of Colfax
City Council
Resolution NQ 29-2014
AFFIRMING ADMINISTRATIVE POLICIES AND PROCEDURES FOR FINANCIAL
MANAGEMENT, INVESTMENT AND WHISTLEBLOWERS
Whereas, the Colfax City Council has determined that the administrative policies for financial management, investment and whistleblowers are important to the smooth and consistent financial operations of the City; and,
Whereas, these policies have not been updated for several years; and Whereas, the annual independent audit recommended such policies be updated and in place; and,
Whereas, the Council has reviewed the attached policies, Now Therefore, Be It Resolved by the City Council of the City of Colfax that the administrative policies attached hereto are hereby affirmed.
Passed and Adopted this 8th day of October by the following vote:
Ayes:
Noes:
Absent:
ATTEST:
Douglass, Hesch, McKinney, Parnham
None
Barkle
Tony' sch, Mayor ~
Item 3f. 40
CITY OF COLFAX
ADMINISTRATIVE POLICIES AND PROCEDURES
Subject:
Effective Date:
Resolution:
Investment Policy
October 8,2014
Resolution No. 29-2014
SCOPE AND AUTHORITY
The purpose of this policy is to establish a prudent and systematic Investment Policy, and to organize and formalize investment-related activities.
The City'S Investment Policy is authorized under the California Government Code, section 53600, et, seq.as it applies to the investment of public funds.
It is intended that this policy cover all funds and investment activities under the direct authority of the City of Colfax. Investments authorized by Fiscal Agents pursuant to bonded debt are controlled by the terms and conditions of the specific bond, and may not necessarily coincide with the Investment Policy outlined herein. Investments must conform to Government Code Section 53600.5 concerning safekeeping of purchased securities by financial advisers, fiscal agent, or consultants. Wherever practical, investments made by a Fiscal Agent on behalf of the City will be consistent with this Policy.
INVESTMENT OBJECTIVES
Safety - It is the primary duty and responsibility of the City Staff to protect, preserve and maintain cash and investments on behalf of the citizens of Colfax.
Liquidity - An adequate percentage of the City's investment portfolio should be maintained in liquid short-term securities which can be converted to cash if necessary to meet disbursement requirements. Since all cash requirements cannot be anticipated, investments in securities with active secondary or resale markets is highly recommended. Emphasis should be on marketable securities with low sensitivity to market risk.
Yield - Yield should become a consideration only after the basic requirements of safety and liquidity have been met.
A. The overall yield should be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City'S risk constraints, the cash flow characteristics of the portfolio, and State and local laws, ordinances or resolutions that restrict investments.
Public Trust - All participants in the investment process shall act as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust.
1 Item 3f. 41
Diversification - The investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.
A. In a diversified portfolio it must be recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.
Prudence - The City adheres to the "prudent person rule" which obligates a fiduciary to insure that: " .. .investments shall be made with the exercise of that degree of judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment considering the probable safety of their capital as well as the probable income to be deri ved."
INVESTMENT STRATEGY
The most effective method of increasing investment yields without sacrificing safety is to extend the investment horizon commensurate with the City'S cash requirements. To that end, improved cash forecasting and management is the preferred investment strategy for the City.
A. Cash management activities include accurate cash projections, the expeditious collection of revenue, the control of disbursements, cost-effective banking relations, and a shortterm borrowing program, when needed, that coordinates working capital requirements and investment opportunity.
ALLOWABLE INVESTMENT INSTRUMENTS
The Government Code, Sections 53601, 53601.1 and 53635 shall govern the City's allowable investments, and the length of those investments, unless specifically limited by this policy.
Although the maximum maturity for any deposit or investment is five years, most investments should be for no longer than 2-3 years. All investments of City funds shall be made in accordance with California Government Code Sections 53601, et seq. and 53635 et seq., or in accordance with California Government Code 16429.1 authorizing investments into the State Local Agency Investment Fund (LAIF). Investments will be authorized by the City Manager, City Treasurer, Finance Director or Mayor only.
REPORTING REQUIRMENTS
City staff shall submit a qua11erly investment report to the City Council. The report must be submitted to the City Manager for the agenda within 30 days following the end of the month covered by the repo11, and is required under Government Code Section 53646. Such rep0l1 shall include at least the following information:
• Types of investments;
• Name of the institution in which funds are invested or deposited; • Date of maturity, if applicable;
• Par and dollar amount investment for all securities;
• Percent distribution of each type of investment or deposit; current market value as of the date of the report, including source of the valuation except those under LAIF; • Rate of interest;
2 Item 3f. 42
• A verage weighted yield of all investments;
• A statement relating the report to the City's Investment Policy; and • A statement that there are sufficient funds to meet the City's next six months' financial obligations.
Staff shall also submit the above information annually to the external auditors.
Periodic reports shall be prepared as required by circumstances or as directed by Council. Such circumstances include, but are not limited to, notification that any City investment may be in jeopardy or a sudden and significant drop in the current market value of any City investment.
INTERNAL CONTROLS AND GENERAL GUIDELINES
A system of internal control shall be implemented to prevent losses of public funds arising from fraud, employee error, misrepresentation of third parties, unanticipated changes in financial markets, or impmdent actions by employees and officers of the City.
Controls deemed most important include:
• The control of collusion and separation of duties;
• Custodial safekeeping of funds invested or on deposit; • Minimizing the number of authorized Investment Officers; and • Written documentation of procedures and transactions.
In selecting financial institutions for the deposit or investment of City funds, the City shall consider the credit-worthiness of the institution. Such credit-worthiness shall be monitored on a regular basis throughout the period in which City funds are deposited or invested.
A. Any deposit or investment of funds shall be in writing, signed by the City and the authorized representative of the institution.
B. All transfers must be made by authorized personnel and properly logged and documented.
City staff shall encourage peer review of the City's investments and investment practices. In addition, the City's cash management and investment practices shall be included in any outside financial audit of the City.
An annual Cash Flow Forecast may be prepared by the City, and would be used to assist in the development of the annual operating budget for the City.
This Investment Policy shall be reviewed by the City Council on an annual basis as part of the budget process.
3 Item 3f. 43
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Item 3f.
44 City of Colfax City Engineering Consultant Services – GHD Budget Staff Report February 28, 2024 Amendment
Staff Report to City Council
FOR THE FEBRUARY 28, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Ron Walker, City Manager
Subject: City Engineering Consultant Services – GHD Budget Amendment Budget Impact Overview:
N/A: Funded: √ Un-funded: Amount: $ 76,000 Fund(s):100-425, 100-120, 560, 561
Summary/Background
Council approved Resolution 38-2019 authorizing the City Manager to enter into an agreement with GHD for City Engineer services for an initial term for 3-years with an option for a 2-year extension. The previous contract extensions provided funding through the beginning of 2024.
The initial contract term was approved for the first 3-years of the agreement followed by approval of the 2-year extension and additional time will be required to assist in the City Manager transition, therefore, staff is requesting council approve a budget amendment to the GHD agreement in the amount of $76,000. GHD has agreed to maintain the contract service rate of $190/hr for the remaining term and the 2-year extension of the contract through August 2024.
The on-call contracted engineering service includes the following functions:
• Capital Improvement Program management and development. • Technical evaluation of projects and programs.
• Project management responsibility for evaluation, programming, design and construction of capital projects.
• Provide oversight of consultant requests for proposals and/or construction services including the advertising and bid processes for projects; evaluation of proposals and recommendation for project award; negotiation and administration of contracts for construction projects. • Participates in initiating all capital improvement projects and programs, including defining project scope, determining project budget, and locating financial resources. • Participate in the review and conditioning of planning applications in relation to the City’s General Plan, infrastructure master plans and overall capital needs of the City. • Preparation of plans, specifications and estimates for City public works projects. • Represents the City within the community and with outside agencies. • City compliance with all Federal, State, County and local laws and regulations. • Manage projects that are Federally, State, or County funded following required policies including Caltrans Local Assistance Procedures Manual.
• Monitors and makes recommendations in relation to changes in laws, regulations and technology that may affect City operations; implements policy and procedural changes as required. • Prepares, reviews, and, presents staff reports and City engineering documents and reports on various projects and programs and attend City Council meetings as necessary. • Review and comment on planning programs and land development controls.
RECOMMENDED ACTION: Adopt Resolution __-2024 authorizing the City Manager to amend the GHD budget in the amount of $76,000 to fund additional time requested for the remaining term of the 2-year extension.
Item 3g. 45
City of Colfax City Engineering Consultant Services – GHD Budget Staff Report February 28, 2024 Amendment
• Provide emergency response in time of unusual weather and other disaster such as flooding, earthquake, etc.
• Provide utility interface as necessary with PG&E, cable, and other utility companies • Perform right-of-way engineering, mapping, and surveying as required. • Construction management, inspection, and related support services as required.
The city engineering service will be an adjunct to the City staff on an as needed base to provide the aforementioned services.
Fiscal Impacts
The cost for the City for the remaining contract term is $76,000 from various funds, which include funds 100- 425, 100-120, 250, 560, and 561.
Attachments:
1. Resolution __-2024
2. GHD Service Agreement
Item 3g. 46
_________________________________________________________________________________________ City of Colfax GHD Contract Budget Amendment
Resolution __-2024
City of Colfax
City Council
Resolution № __ - 2024
APPROVE A BUDGET AMENDMENT FOR GHD IN THE AMOUNT OF $76,000 TO FUND THE
REMAINING INITIAL AGREEMENT TERM
WHEREAS, Council approved Resolution 38-2019 authorizing the City Manager to enter into an agreement with GHD for City Engineering services for an initial term for 3-years with an option for a 2-year extension; and,
WHEREAS, the amount of demand on the City Engineering services has exceeded the initial anticipated cost; and,
WHEREAS, staff is requesting council approve a budget amendment to the GHD agreement in the amount of $76,000 to fund the remaining initial agreement term and 2-year extension.
NOW THEREFORE, BE IT RESOLVED the City Council of the City of Colfax approves a budget amendment for GHD in the amount of $76,000 to fund the remaining agreement term and the 2-year extension.
THE FOREGOING RESOLUTION WAS DULY AND REGULARLY ADOPTED at the Regular Meeting of the City Council of the City of Colfax held on the 28th of February 2024 by the following vote of the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________________
Kim A. Douglass, Mayor
ATTEST:
________________________________________
Amy Lind, Interim City Clerk
Item 3g. 47
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60 City of Colfax Colfax Green Machine Skate Park Project Update and Funding Staff Report February 28, 2024 Request
Staff Report to City Council
FOR THE FEBRAUAY 28, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Ron Walker, City Manager
Subject: Skate Park Project Update and Funding Request
Budget Impact Overview:
N/A: Funded: Un-funded: Amount: $100,000 Fund(s): 213 Summary/Background
On October 23, 2019, the City Council adopted Resolution 51 - 2019 which formally approved locating the Skate Park adjacent to the Splash pad. This project has experienced multiple delays and has yet to be completed.
The skate park is part of the Colfax Green Machine Project, for which donations have been promised and/or collected from the community over the years. Increases in costs, including prevailing wage expenses, have surpassed the current project budget, potentially causing further delays to the project.
Conclusions and Findings
To address the escalating project costs, Green Machine is requesting the council's approval to modify the current footprint and design of the skate park to align with the available budget. If granted, the Colfax Green Machine will bear the expenses for full engineered plans and concept design imagery.
Additionally, Colfax Green Machine is seeking council approval to allocate $100,000 from Colfax City Park and Recreation fees to facilitate the completion of the skate park.
Fiscal Impacts
The fiscal impact to the City is $100,000 out of Fund 213 –Parks & Recreation Mitigation Fund Attachments:
1. Resolution __-2024
2. Colfax Green Machine Skate Park Project Update
RECOMMENDED ACTION: Adopt Resolution __-2024 to review and approve a redesign of the Colfax Skate Park, ensuring alignment with current budget constraints and authorize the allocation of $100,000 from the city's Parks and Recreation mitigation fund to supplement existing project budget limitations.
Item 5a.
61 _________________________________________________________________________________________ City of Colfax Colfax Green Machine Skate Park Project Update and Funding Resolution __-2024 Request
City of Colfax
City Council
Resolution № __ - 2024
REVIEW AND APPROVE A REDESIGN OF THE COLFAX SKATE PARK, ENSUSURING ALIGNMENT WITH CURRECT BUDGET CONSTRAINTS AND AUTHORIZE THE ALLOCATION OF $100,000 FROM THE CITY’S PARKS AND RECREATION MITIGATION FEES TO SUPPLEMENT EXISTING PROJECT
BUDGET LIMITATIONS
WHEREAS, On October 23, 2019, the City Council adopted Resolution 51 - 2019 which formally approved locating the Skate Park adjacent to the Splash pad.; and, WHEREAS, increased costs have surpassed the current project budget; and, WHEREAS, Colfax Green Machine is requesting City Council approval to modify the current footprint and design of the skate park, and approval to allocate $100,000 from the Parks and Recreation mitigation fund to facilitate the completion of the park.
NOW THEREFORE, BE IT RESOLVED the City Council of the City of Colfax authorizes the redesign of the Colfax Skate Park and approves the allocation of $100,000 from the city’s park and recreation mitigation fund for the project.
THE FOREGOING RESOLUTION WAS DULY AND REGULARLY ADOPTED at the Regular Meeting of the City Council of the City of Colfax held on the 28th of February 2024 by the following vote of the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________________
Kim A. Douglass, Mayor
ATTEST:
________________________________________
Amy Lind, Interim City Clerk
Item 5a.
62 Ty Conners
Vice-President Colfax Green Machine
Colfax Skatepark lead
Colfax City Council,
As many of you are aware, I've been leading the effort for the Colfax Skatepark for nearly nine years. The Colfax Green Machine has been a steadfast supporter, and together, we've tirelessly worked to keep this project alive through numerous community events and fundraisers. Despite facing various hurdles, the Colfax Skatepark has emerged as the largest non-profit project in Colfax.
Navigating through the challenges posed by COVID-19 and grappling with the ongoing increases in inflation and prevailing wages has been no easy feat. Recently, during a review of plans with City Engineer Carl Moore and former City Manager Wes Heathcock, it became apparent that prevailing wages in the state have risen significantly over the past year. This increase has exceeded our current budgetary allocations, posing a substantial challenge to the progress of the skatepark project. Labor costs alone for the current 11,000-squarefoot design are projected to be $582,000, approximately $182,000 beyond our existing budget, and only for labor no other contingencies.
To overcome this obstacle and ensure the completion of the project, two crucial steps need to be taken. Firstly, I seek the council's approval for the Green Machine to revise the current footprint and design of the skatepark to align with the available budget. Discussions with skatepark designers indicate that redesigning to fit current budget constraints is a common practice for non-profit skateparks. Design companies will assess our existing funds, in-kind donations, and materials to develop a park that meets our financial parameters. If approved, the Colfax Green Machine will cover the costs of full engineered plans and concept design imagery. While it's unfortunate that the funds spent on the current plans will be scrapped, this change is necessary to advance the project towards completion. Our immediate goal is to secure enough funds and in-kind donations to reach the $600,000 mark in cash funds.
Secondly, although I previously aimed to avoid using any city funds for the project, the unexpected rise in costs necessitates a shift in approach. I've consulted with our Colfax City Council Skatepark Advisory Committee, and it was unanimously agreed to seek council approval to utilize $100,000 from Colfax City Park and Recreation fees towards completing the skatepark. Additionally, Placer County Parks staff are preparing to request additional County Park Fees, potentially up to $130,000, from the unincorporated Colfax area to support the project. This funding, combined with the city's contribution, could provide an additional $235,000 towards the project.
If approved, our overall budget for the project would be as follows:
2018 Parks Bond Act per Capita Grant program: $177,925
Placer County Park and Rec Fees: $75,000
Colfax Green Machine funds: approximately $94,000
Colfax Park and Rec Fees: $100,000 (subject to approval) Placer County Park and Rec fees: $130,000 (subject to approval) Item 5a.
63 With these funds in place, we would be close to our financial goal and poised to proceed with bidding and advancing the skatepark project.
Thank you for considering these requests, and I look forward to your support in moving this vital community initiative forward.
Sincerely,
Ty Conners
Item 5a.
64 City of Colfax Sewer Rate Study Presentation
Staff Report February 28, 2024
Staff Report to City Council
FOR THE February 28, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Ron Walker, City Manager
Subject: Sewer Rate Study Presentation
Budget Impact Overview:
N/A: Funded: √ Un-funded: Amount: $0 Fund(s): 560 & 561 Summary/Background
A sewer rate study was completed in 2018 which established rates for five years. Early in 2023 the city advertised a Request for Proposals seeking a professional consulting service to update the City Utility Rates for Wastewater. The scope of the study is to provide analyses and documentation to perform a study of the City’s wastewater utility rates and make a recommendation of a five-year rate schedule to assure the rates will cover operational and capital costs while adhering to the legal requirements of Proposition 218. Hansford Economic Consulting LLC (HEC) was awarded a contract to perform the study.
Conclusions and Findings
HEC has worked with city staff to prepare a draft report for your consideration. HEC is presenting the findings of the study, including a detailed description of the methodology used to conduct the financial analysis, and how the updated rates meet the requirements of Proposition 218. The report provides three different rate levels for the city council to consider; all of which are projected to provide sufficient rate revenues over the next five years to cover operation and capital costs. HEC will explain the next steps in the adoption and implementation of new rates, including critical dates to ensure new rates are in place with the start of fiscal year 2025, customer rights and opportunities for input.
Fiscal Impacts
There is no fiscal impact to the city.
RECOMMENDED ACTION: Review and provide direction to staff to work with Hansford Economic Consulting to move forward with the Sewer Rate Study Process.
Item 5b.
65 City of Colfax Sewer Rate Study Presentation
Staff Report February 28, 2024
Attachments:
1. Resolution __-2023
2. Draft Wastewater Rate Study
Item 5b.
66 HEC No. 230401
Item 5b. 67
The following report was prepared by Hansford Economic Consulting LLC.
The analyses and findings contained within this report are based on primary data provided by the City of Colfax, as well as additional secondary sources of data available as of the date of this report. Updates to information used in this report could change or invalidate the findings contained herein. While it is believed that the primary and secondary sources of information are accurate, this is not guaranteed.
Every reasonable effort has been made in order that the data contained in this study reflect the most accurate and timely information possible. No responsibility is assumed for inaccuracies in reporting by the client, its consultants and representatives, or any other data source used in the preparation of this study. No warranty or representation is made that any of the projected values or results contained in this report will be achieved. There will usually be differences between forecasted or projected results and actual results due to changes in events and circumstances.
Changes in economic and social conditions that may negatively affect the findings of this report include, but are not limited to, economic recessions, major environmental problems, or natural disasters. Any applications for financing, or bond sales analyses, should re-evaluate the financial health and projection of revenues and expenses at the time of the application or preparation for bond sale.
Item 5b. 68
TABLE OF CONTENTS
SECTION PAGE
1. Introduction 1
1.1 Study Background 1
1.2 Major Assumptions of the Study 3
1.3 Key Findings and Calculated Fees 5
1.4 Comparison of Current and Calculated Fees 7
2. City Customers and Financial Health 8
2.1 City Customers 8
2.2 Financial Health of the Wastewater Fund 9
3. Projected Revenue Requirement 13
3.1 Operating Costs 13
3.2 Capital Improvements and Debt Service 14
3.3 System Rehabilitation Costs 16
3.4 Projected Revenue Requirement 17
4. Cost of Service Wastewater Fee Calculations 20
4.1 Wastewater Fee Calculations 20
5. City and Customer Impacts 23
5.1 Operating Fund Cash Flow Projection 23
5.2 Wastewater Fund Ending Cash Balances 24
5.3 Residential Bill Impacts 27
Appendix A: Rate Study Support Tables
Item 5b. 69
LIST OF TABLES
TABLE PAGE
1 Calculated Maximum Wastewater Fee per EDU per Month 6 2 Customer Characteristics 9
3 Projected Growth in Wastewater EDUs 9
4 Historical Revenues and Expenses 10
5 Projected Wastewater System CIP Expenditures 14
6 State Water Board Grant-Funded Projects 15
7 Consolidation Efforts Preliminary Cost Estimate 15
8 Restructured SRF Loan Repayment 16
9 Projected Revenue Requirement 19
10 Calculated Cost per EDU Fiscal Year 2025 Rate Alternative 1 20 11 Calculated Rates per EDU and Annual Rate Revenues 21 12 Projected Operating Fund Cash Flow 23
13 Projected Wastewater Fund Ending Cash Balance 25
LIST OF FIGURES
FIGURE PAGE
1 Fee-Setting Process 2
2 Projected Cash Balances under Three Rate Alternatives 6 3 Projected Monthly Wastewater Fees for a Home under Three Rate Alternatives 7 4 Wastewater Generation by Customer Group 8
5 Historical Operating Expenditures 9
6 Projected Revenue Requirement and Rate Revenues 18
7 Projected Monthly Wastewater Rate per EDU Alternative 1 21 8 Projected Monthly Fee for an EDU under Three Rate Alternatives 22 9 Historical Wastewater Fund Ending Cash Balance 24
10 Projected Wastewater Fund Ending Cash Balance 26
11 Historical and Projected Wastewater Fund Cash Balances 26 12 Residential Regional Bill Comparison 27
Item 5b. 70
Section 1: INTRODUCTION
1.1 STUDY BACKGROUND
The City of Colfax (City) provides wastewater collection, treatment and disposal services to residents and businesses in the Colfax community. The City contracted with Hansford Economic Consulting LLC (HEC) to determine the level of funding required over the next five years to sufficiently fund service provision, and the fees to be collected from customers to achieve that level of funding. The wastewater financial model projects revenues and expenses and calculates required annual property-related fees by customer type to maintain revenue sufficiency.
The property-related fees (also called “rates” in the Study) are exempt from Proposition 26 but are subject to California Constitution Article XIII D (commonly referred to as Proposition 218) requirements for water, wastewater, and solid waste property-related fees.
This Study provides an explanation of, and justification for, calculated annual wastewater fees per Equivalent Dwelling Unit (EDU) through June 30, 2029, and documents adherence to the law regarding the setting of property-related fees by a City. Specifically, the California Constitution requires that the fees for wastewater service shall not be extended, imposed, or increased by any agency unless all the following requirements have been met:
(1) Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service.
(2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
(3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel.
(4) No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property in question. Fees or charges based on potential or future use of a service are not permitted. (5) No fee or charge may be imposed for general governmental services including, but not limited to, police, fire, ambulance, or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.
Fee studies are typically conducted every three to five years to ensure revenue sufficiency. In addition, an important part of the fee study is a cost-of-service analysis, so that the study addresses not only revenue sufficiency, but also whether customers are paying for their Item 5b. 71
share of system costs, adjusting rates and customer classifications to achieve equity to the maximum extent practicable. The fee-setting cycle is illustrated in Figure 1 below. The City last adopted wastewater rates in June 2018, with the last rate increase effective July 1, 2022.
Figure 1
Fee-Setting Process
UTILITY
FEES
DETERMINE
REVENUE
REQUIREMENT
SELECT FEE
STRUCTURE
CALCULATE
FEES
IMPLEMENT
FEES
REVIEW
FEES
This report was prepared using principles established by the American Water Works Association (AWWA), the Water Environment Federation (WEF), and Government Finance Officers Association (GFOA). Standard rate-setting practices are described in the WEF Manual of Practice No. 27 and guidelines prepared by the California State Water Resources Control Board for State Revolving Fund financing. The GFOA publishes guidelines on sufficient cash balances for enterprise funds. Minimum cash balance targets for each utility fund in this Study are based on the GFOA guidelines.
The following four steps outline how wastewater rates are calculated such that the wastewater fees meet California’s legal requirements.
1. Establish the Wastewater Customer Base and User Characteristics – The wastewater customer base includes residential and commercial users. All users are counted in EDUs for purposes of fee-setting, as described in Section 2 of the Study. Section 2 also provides details on the current rate schedule and historical financial health of the City’s wastewater fund.
Item 5b. 72
2. Project Revenue Requirement – The revenue requirement is the amount of money to be raised from rates. The revenue requirement analysis compares the revenues of the utility to its operating and capital costs to determine the adequacy of existing rates to recover the utility’s costs. Components of revenue requirement include capital improvement costs, system rehabilitation costs, operations and maintenance costs, and operating reserve costs. Non-rate revenue credited against the projected costs include interest income, inspection fees, rent and late charges. Revenue requirement calculations are provided in Section 3 of the Study.
3. Allocate Revenue Requirement to Customer Types and Determine Cost per EDU – The revenue requirement is allocated to customer types based on flow (their number of EDUs). Section 4 of this Study describes the rate calculation methodology and determines projected rates per step 3.
Section 5 includes an analysis of the impact of the updated rates on customers, calculated fees, cash flow projection, and a comparison of bills with other regional communities and cities of similar size.
Appendix A includes support tables for the wastewater rates analysis.
1.2 MAJOR ASSUMPTIONS OF THE STUDY
No Change to the Rate Structure
Most wastewater providers charge all properties that have paid their connection fees and have physically connected to the wastewater system, or are ready to connect, at least some portion of rates, depending on the fee structure used. The EDU fee structure, which is often used for smaller systems, charges properties that have purchased capacity in the wastewater system, whether or not they are currently using the service because the wastewater system must always be ready to receive wastewater flow from properties that have connected or are ready to connect to the system.
The City’s customer base has not changed significantly for many years and there are no industrial customers being served at the wastewater treatment plant. Wastewater strength is similar across all customers currently served. Pursuant to State Water Board guidance, it is reasonable to continue to charge the same fee per EDU across all customer categories.
What is an EDU? City Ordinance No. 475 defines an EDU as the average wastewater discharge from a Single Family Dwelling. For purposes of calculating sewerage system design parameters and comparing wastewater discharge from sewer service users other than single family dwellings, one EDU equals a domestic wastewater volume of 200 gallons per day, and 180 milligrams per liter maximum each, BOD and TSS, per day at average dry weather flow rates. One EDU is further considered to generate domestic wastewater, carrying a minimal to moderate load of nonhazardous contaminants such as common household cleaning and maintenance products.
Item 5b. 73
Growth
Historical growth of 0.25% per year is included in the 5-year rate model. The growth rate increases the number of wastewater EDUs by three per year.
Potential Consolidation of Shady Glen - Feasibility Analysis Included but Construction not assumed in 5-Year Projection
A feasibility study is currently being conducted for consolidation of the Shady Glen community and its surrounding area with the City’s wastewater system. The costs associated with the feasibility study (planning), which are being grant-funded by the State, are included in the cost projection for the next five years as those costs impact cash flow.
If the project is determined to be feasible, and construction is to start before the end of fiscal year 2029, the City will be required to undertake a rate study as part of its financial analysis prepared for the State, and possibly LAFCO.
No New Debt
It is assumed that all operating and capital costs will be paid for with fees and cash reserves, as well as State grants, and that no new debt will be incurred in the next 5-year period.
Three Financial Criteria
The rates are calculated with three financial criteria in mind:
1. General operating cash reserves of at least 75% of operating expenses (9 months of operating costs) shall always be maintained.
2. A minimum $950,000 shall be kept in restricted and designated reserves to cover the SRF loan reserve requirement of $439,000 plus at least $500,000 for capital projects.
3. Every year, the net operating income will exceed debt service by at least 1.25.
Three Rate Alternatives
Wastewater fees for next five fiscal years have been calculated for three rate alternatives.
The calculated rates under the three alternatives are the maximum that could be imposed. If adopted rates produce revenues that are greater than needed in future years, the City could freeze rates, or even lower rates, or could put aside funds for a dedicated purpose, including rate stabilization.
How is an EDU determined? EDUs are assigned by the City at time of application for service, depending on the intended use(s) of the property. The number of EDUs are reviewed upon change in building use and/or application for building alterations.
Item 5b. 74
Alternative 1: The City continues to fund system rehabilitation at 15% of depreciation each year. The total revenue requirement, and the three financial criteria, are met over the next 5 years by applying a 5.75% rate increase each year.
Additional funds for future repairs accumulated over 5 years - $650,000.
Alternative 2: The City stops putting money aside for system rehabilitation because sufficient cash reserves have already been accumulated. The revenue requirement, and three financial criteria, are met over the next 5 years by applying a 4.00% rate increase each year.
No additional funds accumulated for future repairs over the next 5 years from rates.
Alternative 3: The City does not fully fund the revenue requirement and draws on cash reserves to pay for a portion of capital project costs. The three financial criteria to remain fiscally healthy are met over the next 5 years by applying a
2.00% rate increase each year.
Cash reserves of about $155,000 are drawn down to pay for a portion of repairs needed in the next 5 years.
1.3 KEY FINDINGS AND CALCULATED FEES
Key Findings
This Study makes the following key findings:
• Cost of service has been distributed among customers proportionately using City Ordinance 475’s definition of EDUs.
• It is projected that, with implementation of any of the three alternative fee schedules, the City will be able to pay for all projected costs in the five-year period, meet the obligations of its SRF loan, and maintain sufficient reserves to pay for studies and construction of State-funded projects which costs will be reimbursed.
Figure 2 shows the projected total cash balances under the three rate alternatives. The minimum cash balance target of $950,000 is shown by the black line. A minimum implies that cash balances should be greater than that amount. When cash balance is greater than the minimum, funds are held for designated purposes, such as rate stabilization, emergency repairs, and so forth.
It is important to note that the cash balance is not lower at the end of the 5-year period, even under rate alternative 3, because of the addition of connection fees (which cannot be used to fund rehabilitation), and reimbursements by the State for grant-funded projects the City has been paying for during fiscal year 2024. As shown by the blue line in Figure 2, cash balance by the end of fiscal year 2029 is projected to be about the same as at the beginning of fiscal year 2024 under alternatives 2 and 3.
Item 5b. 75
Figure 2
Projected Cash Balances under Three Rate Alternatives
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2025 2026 2027 2028 2029
Alt. 1 Rate (5.75%) Alt. 2 Rate (4.00%)
Alt. 3 Rate (2.00%) Min. Target Reserve
Beginning FY2024
Calculated Rates
The current wastewater fee per EDU is $143.07 per month. The calculated maximum monthly wastewater fee per EDU for the next five fiscal years is shown in Table 1 for the three rate alternatives.
Table 1
Calculated Maximum Wastewater Fee per EDU per Month
Scenario FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Alternative 1 (5.75%) $151.30 $160.00 $169.20 $178.93 $189.22 Alternative 2 (4.00%) $148.79 $154.74 $160.93 $167.37 $174.06 Alternative 3 (2.00%) $145.93 $148.85 $151.83 $154.87 $157.97 Item 5b. 76
1.4 COMPARISON OF CURRENT AND CALCULATED FEES
Figure 3 shows the projection of monthly fees for a single family home over the next five years under the three rate alternatives.
Figure 3
Projected Monthly Fees for a Home under Three Rate Alternatives $151.30
$160.00
$169.20
$178.93
$189.22
$148.79
$154.74
$160.93
$167.37
$174.06
$145.93 $148.85 $151.83 $154.87 $157.97
$143.07
$100
$110
$120
$130
$140
$150
$160
$170
$180
$190
$200
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Alt. 1 Rate (5.75%) Alt. 2 Rate (4.00%)
Alt. 3 Rate (2.00%) Current Rate
Item 5b. 77
Section 2: CITY CUSTOMERS AND FINANCIAL HEALTH
2.1 CITY CUSTOMERS
RATE METHODOLOGY STEP 1
Establish the Wastewater Customer Base and User Characteristics The City provides wastewater service to about 760 accounts, which together comprise about 2,150 equivalent dwelling units (EDUs). The City’s historical population and housing unit estimates are shown in Table A-1.
The City’s customers send, on average, about 250,000 gallons of untreated wastewater to the wastewater treatment plant each day. Residential customers generate approximately 70% of the flow. Figure 4 shows the contributing flow to the wastewater treatment plant from each customer group.
Figure 4
Wastewater Generation by Customer Group
Residential
70%
Commercial
21%
Institutional
9%
Table 2 shows the City’s customer characteristics and the flow and load factors that are used in the rate study to allocate the revenue requirement among the customers. Because the wastewater characteristics are assumed generally the same across all customer types, total revenue requirement is divided by total number of EDUs each year.
Over the next 5 years, it is estimated that the City will add 3 EDUs per year to the wastewater system, as shown in Table 3.
Item 5b. 78
Table 2
Customer Characteristics
Customer Number
Category EDUs Flow BOD SS
GPD MG/L MG/L
(A) (B) (C) (D)
Residential
Single Family 601.14 200 180 180
Multi-Unit 280.00 200 180 180
Commercial
All Commercial 258.50 200 180 180
Institutional
Church 15.00 200 180 180
Government 10.08 200 180 180
Railroad 30.00 200 180 180
School 58.30 200 180 180
TOTAL 1,253.02
Source: City of Colfax municipal code 13.080.090 and customer database as of June 2023.
Wastewater Characteristics
Table 3
Projected Growth in Wastewater EDUs
Item 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Growth Assumption --> 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% Sewer EDUs 1,250 1,253 1,256 1,259 1,263 1,266 1,269
Increase in EDUs 3 3 3 3 3 3
Source: City of Colfax and HEC, December 2023.
2.2 FINANCIAL HEALTH OF THE WASTEWATER FUND
Table 4 summarizes the City’s historical revenues and expenditures. The table excludes depreciation, which is a non-cash item. Every year for the past five fiscal years, the City has had positive net income.
About 95% of the City’s revenues are from wastewater service charges. All accounts pay a minimum of one EDU per month, regardless of whether the home or business space is currently occupied or vacant. Other sources of operating revenue include inspection fees, interest income, late charges, and miscellaneous revenue.
Item 5b. 79
Table 4
Historical Revenues and Expenses
Revenues and
Expenses 2019 2020 2021 2022 2023
Operating Revenues
Service Charges $1,928,185 $2,172,280 $2,162,840 $2,142,729 $2,140,645 Miscellaneous $285,442 $41,394 $37,103 $39,277 $42,962
Subtotal Operating Revenues $2,213,627 $2,213,674 $2,199,943 $2,182,006 $2,183,607 Operating Expenses
Personnel Services $517,004 $631,044 $528,960 $507,856 $695,223 Operation and Maintenance $567,658 $576,231 $685,005 $662,186 $851,747 Subtotal Operating Expenses $1,084,662 $1,207,275 $1,213,965 $1,170,042 $1,546,970 Net Operating Income $1,128,965 $1,006,399 $985,978 $1,011,964 $636,637 Non-Operating Revenues (Expenses)
Insurance Reimbursements $0 $0 $191,446 $17,437 $0
Interest Income $58,707 $54,363 $17,333 $12,791 $72,438 Rental Income $0 $3,000 $3,000 $3,000 $3,000
Other Income $0 $0 $35,737 $58,000 $0
Interest Expense ($80,403) ($76,817) ($73,195) ($69,537) ($65,844) Subtotal Non-Operating Revenues ($21,696) ($19,454) $174,321 $21,691 $9,594 Capital Contributions
State Grant $5,255 $280,246 $162,042 $1,085,387 $1,721,175 Transfers In (grants) $0 $0 $286 $196,392 $304,294
Transfers Out $0 $0 $0 $0 $0
Net Income $1,112,524 $1,267,191 $1,322,627 $2,315,434 $2,671,700 Capital Activities
Capital Expenditures $100,438 $316,597 $702,156 $1,317,073 $2,135,261 Debt Service Principal $356,196 $359,760 $363,354 $366,991 $370,659 Settlements / Other $25,602 $0 $0 $0 $0
Subtotal Capital Activities $482,236 $676,357 $1,065,510 $1,684,064 $2,505,920 Net Income after Capital Expenses $630,288 $590,834 $257,117 $631,370 $165,780 Source: City of Colfax finance department.
Fiscal Year Ending
Figure 5 illustrates that management of the wastewater system comprises approximately 47% of the total annual costs. Repairs and maintenance comprise 16% of the annual costs, and occupancy, which comprises power costs, building repairs and security, comprise 14% of total annual costs.
Item 5b. 80
Figure 5
Historical Operating Expenditures
Personnel
47%
Supplies &
Equipment
Communications 16%
1%
Contract
Services
10%
Occupancy
14%
All Other
12%
Reserves
The City currently has approximately two million dollars in unrestricted reserves and one million dollars in restricted or designated reserves. Reserves are necessary for several reasons, to:
• Serve cash flow needs
• Pay for emergency and unplanned necessary repairs
• Accumulate for system rehabilitation (planned improvements) • Provide rate stabilization
The GFOA offers the following guidelines for a wastewater provider to determine its cash reserve needs.
“The maintenance of reserves can be defined generally as the maintenance of cash or financial capabilities to meet unknown changes in the budgets and financial needs of a utility. These needs could arise from new laws and regulations, natural disasters, operating emergencies, financial losses in earning potential from idle cash, drop in economic conditions in the service area or the state, insurance losses, litigation, revenue collection process breakdowns, and operating emergencies in the service area. These needs may vary according to the types and designations of the funds collected or expenses require, thereby necessitating different policies for varying areas or funds of an agency’s operation.”1
1 Page 35, Financing and Charges for Wastewater Systems, Manual of Practice No. 27.
Item 5b. 81
“The utility should identify the drivers affecting [its] financial activities. It should determine the maximum length of time that it might have to operate without the revenue or expense and then determine the cumulative dollar value for this period of time.”2 While each utility needs to assess its risks on an individual basis using knowledge of the current status of infrastructure, regulatory requirements, cash flow “bumps” and so forth, there are some general guidelines to measure what a prudent reserve would be for the utility. The GFOA best practice is to start with a baseline of 90 days of operating expenses and adjust depending on local circumstance. GFOA guidelines to adjust the target for local circumstances include:
• Frequency of revenue collection – The City’s wastewater fund has predictable, steady revenues – this lowers the cash flow concern.
• Diversity of the customer base – timely payments and cash flow is less of a concern with a diverse customer base. Colfax’s customer base is becoming more diverse as it grows; however, it is predominantly a residential community. • Unpredictable weather events – large weather events can cause need for costly emergency work. Colfax does experience snow and flood events, and large wildfires in the region in recent years should be considered. In the case of major environmental disaster, government funding relief may be found for rebuilding the wastewater system, but these sources of funding will not cover loss of rate revenues.
• Ever-increasing California environmental standards / requirements for wastewater treatment – may require new infrastructure and/or monitoring expenses. The City has been subject to large increased costs due to environmental concerns in the past. • Rate stabilization – raising rates is unappealing; especially with a small customer base such as the City’s. When there are sufficient reserves, more gradual rate increases can be introduced.
This rate study makes the following cash reserve recommendations, which are two of three financial criteria used in the rate model:
• Maintain general operating cash reserves of at least 75% of operating expenses (9 months of operating costs).
• Keep a minimum $950,000 in restricted and designated reserves to cover the SRF loan reserve requirement of $439,000 plus at least $500,000 for capital projects. 2 Page 37, Financing and Charges for Wastewater Systems, Manual of Practice No. 27.
Item 5b. 82
Section 3: PROJECTED REVENUE REQUIREMENT
RATE METHODOLOGY STEP 2
Project the Revenue Requirement and Allocate to Collection and Treatment Costs The revenue requirement is the amount to be raised by wastewater fees. The projection of the revenue requirement is the cornerstone for calculation of rates. This section explains the derivation of the revenue requirement for this Study.
Components of the revenue requirement include:
• Operating Expenses
• Debt Service
• System Rehabilitation
• Capital Project Costs (new facilities and expansion of existing facilities) Non-wastewater fees revenue projections are credited against projected costs. Nonwastewater fee revenues include inspection fees, interest income, late charges, and miscellaneous revenue.
3.1 OPERATING COSTS
Operating expenses are projected based on fiscal year 2024 budgeted expenditures and conversations with City staff regarding adjustments for the next five-year period. Operating expenses include annual costs for personnel (including benefits), professional and contract services, treatment plant operations and maintenance, collection system and other wastewater facilities operations and maintenance, utilities, facilities equipment, tools, subscriptions, and supplies. Operating expenses are budgeted at $1.5 million in fiscal year 2024.
Appendix Table A-2 shows how City expenses have increased annually, on average, compared with the San Francisco Engineering News Record Construction Cost Index (ENR CCI) and the West Region Consumer Price Index (CPI). Overall, the City’s annual operating expenses increased 8.2% per year for the last five years compared with 5.0% for the San Francisco ENR CCI and 4.2% for the West Region CPI. It is typical for utility costs to increase at a greater pace than these two indices. The rate study increases each of the operating cost categories by 4.0% to 5.0% each year over the next five years in anticipation of inflationary cost increases.
Appendix Tables A-3 through Table A-5 provide detail of historical revenues and expenses by treatment plant, collection system, and debt service financial components of the wastewater fund.
Item 5b. 83
3.2 CAPITAL IMPROVEMENTS AND DEBT SERVICE
The City anticipates needing many capital improvements at the wastewater treatment plant and two major rehabilitation collection system projects in the next five years. Table 5 summarizes the estimated costs of wastewater projects in the City’s Capital Improvement Plan (CIP), as provided by City staff. All the costs shown in the table are in inflated dollars (the amount that the improvement would cost at the time it is constructed). In total, it is estimated that the improvements will cost about $1.60 million. All these costs are the responsibility of existing customers because all the listed improvements will be used to serve existing customers. Table A-6 and Table A-7 in Appendix A provide supporting information for the wastewater system CIP.
Table 5
Projected Wastewater System CIP Expenditures
Description Total FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Treatment Plant $1,332,180 $143,855 $162,562 $301,600 $204,162 $520,000 Ponds $64,480 $52,000 $0 $0 $12,480 $0
Lift Stations $208,000 $0 $52,000 $52,000 $52,000 $52,000 Total System CIP $1,604,660 $195,855 $214,562 $353,600 $268,642 $572,000 Source: City of Colfax February 2024.
inflated dollars
Table 6 summarizes State Water Board grant-funded projects, which include major upgrades to the collection system, algae reduction treatment and the treatment plant. These two projects are estimated to cost just under $10.0 million.
In addition to these known projects, the City is working with the State Water Resources Control Board and the Local Agency Formation Commission (LAFCO) on potential consolidation of wastewater customers in and around Shady Glen. This latter project would be a long-term project; however, significant planning costs could be incurred in the next fiveyear period. Although it is anticipated that costs associated with this project will also be grant-funded, such funds would be reimbursements to the City. As such, the City must ensure it has sufficient cash flow to carry associated consolidation study costs. Preliminary cost estimates for consolidation are shown in Table 7.
Item 5b. 84
Table 6
State Water Board Grant-Funded Projects
Improvement Project
2023 Bid Amount
[1]
Collection System
Inflow & Infiltration Mitigation $5,225,633
Treatment Plant
Algae Reduction $4,564,224
Total Grant-Funded Projects $9,789,857
Source: City of Colfax, January 2024.
[1] Includes contingencies.
Table 7
Consolidation Efforts Preliminary Cost Estimate
Category Cost Estimate [1]
Colfax Planning $3,590,000
Shady Glen Planning $2,230,000
Preliminary Planning Cost $5,820,000
Construction Cost Estimate $46,970,000
Source: Wood Rodgers, Project Engineer, January 2024.
[1] Costs include inflation.
Debt
The City has a State Revolving Fund (SRF) loan with the State Water Resources Control Board. The loan was restructured in 2017. The scheduled loan repayments are shown in Table 8. The State requires the City hold $439,000 in a restricted reserve account, which can be drawn upon if the City has insufficient funds to make a payment.
A debt service coverage of 1.25 provides the third financial criterion to be met in the rate model. This is the debt service coverage typically required for revenue bonds. Each year, the net operating income should exceed debt service by at least 1.25.
Item 5b. 85
Table 8
Restructured SRF Loan Repayment
FY Ending Principal Interest Total
Accrued
Interest
Outstanding
Principal
2024 $374,366 $64,608 $438,974 $64,608 $6,086,395
2025 $378,110 $60,864 $438,974 $60,864 $5,708,285
2026 $381,891 $57,083 $438,974 $57,083 $5,326,394
2027 $385,710 $53,264 $438,974 $53,264 $4,940,684
2028 $389,567 $49,407 $438,974 $49,407 $4,551,117
2029 $393,463 $45,511 $438,974 $45,511 $4,157,654
2030 $397,397 $41,577 $438,974 $41,577 $3,760,257
2031 $401,371 $37,603 $438,974 $37,603 $3,358,886
2032 $405,385 $33,589 $438,974 $33,589 $2,953,501
2033 $409,439 $29,535 $438,974 $29,535 $2,544,062
2034 $413,533 $25,441 $438,974 $25,441 $2,130,529
2035 $417,669 $21,305 $438,974 $21,305 $1,712,861
2036 $421,845 $17,129 $438,974 $17,129 $1,291,015
2037 $426,064 $12,910 $438,974 $12,910 $864,952
2038 $430,324 $8,650 $438,974 $8,650 $434,627
2039 $434,627 $4,346 $438,974 $4,346 $0
Source: SWRCB Payment Schedule, September 15, 2022.
Loan Terms: 25 years repayment period, 1.00% interest.
Total Funding $12,989,267
Principal Forgiveness $3,319,000
Loan $9,670,267
Payment due October 31
3.3 SYSTEM REHABILITATION COSTS
Depreciation is used as the basis for which to collect rates to cover system rehabilitation costs. Collecting for system rehabilitation in the rates allows the City to replace assets as they outlive their useful lives. Depreciation is approximately $770,000 per year for the wastewater system. In fiscal year 2024, the City is funding approximately 15% of annual depreciation.
The level of funding of depreciation significantly influences the level of wastewater rates.
The three rate alternatives provided in this report are developed based on the level of funding of depreciation. While it is important to include replacement of assets in rates, most entities do not include 100% depreciation in their rates because of the ability to obtain lowcost financing, or even grants, when the need arises to undertake the rehabilitation or Item 5b. 86
replacement work. Another reason why rehabilitation costs may be only partially recovered, or not recovered in rates is when much of the system is currently being repaired and improved, or when the city has built up cash reserves that are greater than targeted and can prudently be drawn on.
The three rate alternatives are:
Alternative 1: The City continues to fund system rehabilitation at 15% of depreciation each year. The total revenue requirement, and the three financial criteria, are met over the next 5 years by applying a 5.75% rate increase each year.
Additional funds for future repairs accumulated over 5 years - $650,000.
Alternative 2: The City stops putting money aside for system rehabilitation because sufficient cash reserves have already been accumulated. The revenue requirement, and three financial criteria, are met over the next 5 years by applying a 4.00% rate increase each year.
No additional funds accumulated for future repairs over the next 5 years from rates.
Alternative 3: The City does not fully fund the revenue requirement and draws on cash reserves to pay for a portion of capital project costs. The three financial criteria to remain fiscally healthy are met over the next 5 years by applying a
2.00% rate increase each year.
Cash reserves of about $155,000 are drawn down to pay for a portion of repairs needed in the next 5 years.
3.4 PROJECTED REVENUE REQUIREMENT
Table 9 estimates the revenue requirement for the next five years. The revenue requirement is projected to increase to account for increases in some cost categories that are anticipated to increase by more than inflation, for inflation, to fund capital expenditures, and to make SRF debt service payments. Non-rate revenue is credited against the estimated annual costs.
Non-rate revenue is held constant due to variability in these revenues given the health of the local and national economy.
Under Alternative 1, the revenue requirement is projected to increase from $2.03 million in fiscal year 2024 to $2.28 million in fiscal year 2025. By year five, the revenue requirement is projected to be $2.99 million.
Calculated Rates. Using the Alternative 1 revenue requirement projection, wastewater rates would need to increase between 0% and 15% (a different percentage each year); however, it is preferable to adopt equal percentage rate increases each year. Under Alternative 1, the City would increase rates by 5.75% each year. At this annual rate increase, the City would be able to pay for projected costs and meet the three financial criteria of the rate study:
Item 5b. 87
1. Maintain at least 9-months unrestricted operating cash reserve,
2. Maintain capital reserves of at least $200,000 each year, and
3. Maintain a debt service coverage ratio of at least 1.25 each year.
Under Alternative 2, the City would have to increase rates 4.00% each year, and under Alternative 3, the City would have to increase rates 2.00% each year.
Figure 6 illustrates projected rate revenue without rate increases, the projected revenue requirement, and the amount projected raised by rates under Alternative 1 (5.75% rate increase each year). In some years, the rate revenue will exceed costs, and in other years it will produce less than needed to pay costs; however, over the total 5-year period, the revenues will pay for total costs included in the revenue requirement.
Figure 6
Projected Revenue Requirement and Rate Revenues
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
$2,400,000
$2,600,000
$2,800,000
$3,000,000
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Revenue Requirement Increased Rates Revenue
Revenue No Rate Increase
Item 5b. 88
Table 9
Projected Revenue Requirement
Expenses and Inflation FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Credits Factor Budget 1 2 3 4 5
Treatment Plant Operating Expenses
Personnel 5.0% $537,146 $564,003 $592,203 $621,813 $652,904 $685,549 Supplies & Equipment 5.0% $229,000 $240,450 $252,473 $265,096 $278,351 $292,268 Communications 4.0% $10,100 $10,504 $10,924 $11,361 $11,816 $12,288 Contract Services 4.5% $86,500 $90,393 $94,460 $98,711 $103,153 $107,795 Resource Development 4.0% $7,000 $7,280 $7,571 $7,874 $8,189 $8,517 Occupancy 4.0% $193,500 $201,240 $209,290 $217,661 $226,368 $235,422 Miscellaneous 4.0% $161,500 $167,960 $174,678 $181,666 $188,932 $196,489 Subtotal Treatment Plant $1,224,746 $1,281,829 $1,341,599 $1,404,182 $1,469,712 $1,538,329 Collection System Operating Expenses
Personnel 5.0% $178,267 $187,180 $196,539 $206,366 $216,685 $227,519 Supplies & Equipment 5.0% $25,100 $26,355 $27,673 $29,056 $30,509 $32,035 Communications 4.0% $2,600 $2,704 $2,812 $2,925 $3,042 $3,163 Contract Services 4.5% $20,500 $21,423 $22,387 $23,394 $24,447 $25,547 Occupancy 4.0% $25,000 $26,000 $27,040 $28,122 $29,246 $30,416 Miscellaneous 4.0% $24,000 $24,960 $25,958 $26,997 $28,077 $29,200 Subtotal Collection System $275,467 $288,622 $302,409 $316,860 $332,005 $347,880 Capital Expenses
Capital Improvements Table 5 $26,310 $195,855 $214,562 $353,600 $268,642 $572,000 System Rehabilitation [1] 4.0% $115,474 $120,093 $124,897 $129,892 $135,088 $140,492 Capital Expenses in Rates [1] $141,784 $315,948 $339,459 $483,492 $403,731 $712,492 Debt Service
SRF WWTP Table 8 $438,974 $438,974 $438,974 $438,974 $438,974 $438,974 Subtotal Debt Service $438,974 $438,974 $438,974 $438,974 $438,974 $438,974 Total Costs $2,080,970 $2,325,373 $2,422,441 $2,643,508 $2,644,422 $3,037,674 Credits
Inspection Fees constant $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Interest Income constant $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Rent constant $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 Interest/Late Charges constant $23,000 $23,000 $23,000 $23,000 $23,000 $23,000 Subtotal Credits $46,000 $46,000 $46,000 $46,000 $46,000 $46,000 Revenue Requirement $2,034,970 $2,279,373 $2,376,441 $2,597,508 $2,598,422 $2,991,674 Amount Raised by Rates [2] $2,151,450 $2,280,898 $2,418,084 $2,563,516 $2,717,711 $2,881,188 Source: City of Colfax and HEC, February 2024.
[1] System rehabilitation funded at 15% (current level of rehabilitation funding). [2] Budgeted rate revenue for fiscal year 2024 is $2,202,349. The rates model projects lower revenue for this year.
Item 5b. 89
SECTION 4: COST OF SERVICE WASTEWATER FEE CALCULATIONS
4.1 WASTEWATER FEE CALCULATIONS
RATE METHODOLOGY STEP 3
Allocate Revenue Requirement to Customer Types and Determine Cost per EDU The revenue requirement and offsetting credits are allocated among customer types according to EDU count by customer type. Total allocated cost to each customer category and the calculated fee per EDU for fiscal year 2025 are shown in Table 10 below. Residential customers are responsible for 70% of the total costs. Commercial and institutional customers are responsible for the remaining 30% of cost.
Table 10
Calculated Cost per EDU Fiscal Year 2025 Rate Alternative 1 Customer Allocated Percentage
Type Cost of Cost
Residential
Single Family $1,118,742 ($22,131) $1,096,611 48%
Multi-Unit $518,281 ($10,253) $508,028 22%
Subtotal Residential $1,604,639 70%
Commercial
All Commercial $478,484 ($9,465) $469,019 21%
Institutional
Church $27,765 ($549) $27,216 1%
Government $18,658 ($369) $18,289 1%
Railroad $55,530 ($1,098) $54,432 2%
School $107,913 ($2,135) $105,779 5%
TOTAL $2,325,373 ($46,000) $2,279,373 100%
Number of EDUs 1,256
Cost per EDU per Month $151.20
Source: HEC February 2024.
Revenue
Requirement
less Offsetting
Credits
The calculated rate per EDU is $151.20 for Fiscal Year 2025, a 5.68% increase over the current fee. Under rate Alternative 1, wastewater rates would need to increase 5.75% per year to meet the revenue requirement needs of the next five fiscal years, as shown in Figure 7.
Item 5b. 90
Figure 7
Projected Monthly Wastewater Rate per EDU Alternative 1 $143.07 $151.30 $160.00 $169.20 $178.93
$189.22
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Treatment Plant Collection System Debt Service
The calculations of rate per EDU, the portion of rates supporting the treatment plant, collection system, and debt service, and annual wastewater rate revenues under rate Alternative 1 (5.75% fee increase each year) are shown in Table 11.
Table 11
Calculated Rates per EDU and Projected Annual Rate Revenues Item FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Annual Rates percentage increase 5.75%
Monthly Rate per EDU $143.07 $151.30 $160.00 $169.20 $178.93 $189.22 Treatment Plant $86.01 $96.15 $102.78 $112.51 $117.62 $131.45 Collection System $18.94 $18.78 $19.97 $20.28 $22.46 $21.67 Debt Service $30.18 $28.56 $28.99 $28.10 $29.70 $27.34
Number of EDUs 1,253 1,256 1,259 1,263 1,266 1,269
Est. New Rates Revenue $2,151,450 $2,280,898 $2,418,084 $2,563,516 $2,717,711 $2,881,188 Revenue Requirement $2,034,970 $2,279,373 $2,376,441 $2,597,508 $2,598,422 $2,991,674 Rates Rev. less Rev. Req't $116,479 $1,525 $41,643 ($33,992) $119,289 ($110,486) Five-Year Total (2025-2029) Revenue Requirement $12,843,418 Five-Year Total (2025-2029) Rate Revenue $12,861,397
Source: HEC February 2024.
Item 5b. 91
The calculated monthly fees per EDU over the next five years under the three rate alternatives are illustrated in Figure 8.
Figure 8
Projected Monthly Fees for an EDU under 3 Rate Alternatives $151.30
$160.00
$169.20
$178.93
$189.22
$148.79
$154.74
$160.93
$167.37
$174.06
$145.93 $148.85 $151.83 $154.87 $157.97
$143.07
$100
$110
$120
$130
$140
$150
$160
$170
$180
$190
$200
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Alt. 1 Rate (5.75%) Alt. 2 Rate (4.00%)
Alt. 3 Rate (2.00%) Current Rate
Item 5b. 92
SECTION 5: CITY AND CUSTOMER IMPACTS
5.1 OPERATING FUND CASH FLOW PROJECTION
The projected operating fund cash flow, assuming the calculated fee revenues are collected under rate Alternative 1, is presented in Table 12. This table shows two of the three financial criteria being met:
1. Maintaining a debt service coverage ratio of at least 1.25.
2. At least 9 months of operating expenses in reserve.
Table 12
Projected Operating Fund Cash Flow
Revenues and FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Expenses 1 2 3 4 5
Revenues
Rate Revenue [1] $2,151,450 $2,280,898 $2,418,084 $2,563,516 $2,717,711 $2,881,188 Inspection Fees $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Interest Income $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Rent $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Interest/Late Charges $23,000 $23,000 $23,000 $23,000 $23,000 $23,000 Total Revenues $2,197,450 $2,326,898 $2,464,084 $2,609,516 $2,763,711 $2,927,188 Operating Expenses
Treatment Plant $1,224,746 $1,281,829 $1,341,599 $1,404,182 $1,469,712 $1,538,329 Collection System $275,467 $288,622 $302,409 $316,860 $332,005 $347,880 Total Operating Expenses $1,500,213 $1,570,451 $1,644,008 $1,721,042 $1,801,717 $1,886,209 Net Income $697,237 $756,447 $820,075 $888,475 $961,994 $1,040,979 Debt Service $438,974 $438,974 $438,974 $438,974 $438,974 $438,974 Debt Service Coverage 1.59 1.72 1.87 2.02 2.19 2.37
Net Operating Revenue $258,263 $317,473 $381,102 $449,501 $523,020 $602,005 Beginning Operations Cash Balance $2,036,738 $1,757,877 $1,308,226 $1,302,204 $1,339,580 $1,425,476 plus Net Operating Revenue $258,263 $317,473 $381,102 $449,501 $523,020 $602,005 Ending Operations Cash (Unrestricted) $2,295,001 $2,075,350 $1,689,328 $1,751,704 $1,862,600 $2,027,482 Transfer to Operating Reserve ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) ($50,000) Transfer to Short-Lived Asset Reserve [2] ($37,124) ($37,124) ($37,124) ($37,124) ($37,124) ($37,124) Transfer to Capital Reserve ($450,000) ($680,000) ($300,000) ($325,000) ($350,000) ($500,000) Ending Balance Operations Cash $1,757,877 $1,308,226 $1,302,204 $1,339,580 $1,425,476 $1,440,358 Months of Operating Expenses 14 10 10 9 9 9
Target Minimum Cash $1,125,160 $1,177,839 $1,233,006 $1,290,781 $1,351,288 $1,414,656 Source: City of Colfax financial records and HEC, February 2024. [1] Budgeted rate revenue for fiscal year 2024 is $2,202,349. The rates model projects lower revenue for this year. [2] Per the requirement of the USDA Letter of Conditions attached to the SRF loan.
If rates are increased 5.75% each year, all operating costs and debt service are paid for; the remaining cash is kept in the operating fund to maintain at least 9 months of operating expenses. When cash exceeds what is necessary to maintain at least 9 months of operating expenses, it is transferred out to other unrestricted and designated funds that support capital expenditures of the wastewater fund.
Item 5b. 93
Transfers include (a) $37,124 each year to fund the short-lived assets of the system, per the City’s USDA Letter of Conditions attached to the SRF loan, (b) $50,000 each year to an operating reserve that may be used for any purpose, such as emergency repairs, and (c) variable transfers each year to pay for the City’s CIP.
5.2 WASTEWATER FUND ENDING CASH BALANCES
Historical ending cash balances for the wastewater fund are provided in Table A-8 and are illustrated in Figure 9. The City has been accumulating cash in anticipation of capital expenditures to replace worn assets and upgrade facilities to meet current State regulations.
Figure 9
Historical Wastewater Fund Ending Cash Balance
$2,062,000
$2,711,000
$3,223,000 $3,313,000
$3,893,000 $4,035,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2018 2019 2020 2021 2022 2023
Fiscal Year Ending
Unrestricted Restricted or Designated
The projected cash balances of the wastewater fund, including the operating fund, capital funds, and temporary funds set up for State grant-funded projects, are shown in Table 13.
Item 5b. 94
Table 13
Projected Wastewater Fund Ending Cash Balance
Revenues & Expenses FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Starting Cash $4,035,052 $3,003,000 $2,266,000 $4,091,000 $4,800,000 $5,094,000 Revenues
Rates $2,151,450 $2,280,898 $2,418,084 $2,563,516 $2,717,711 $2,881,188 Other $46,000 $46,000 $46,000 $46,000 $46,000 $46,000
Connection Fees $35,619 $36,601 $37,610 $38,647 $39,712 $40,806 Total Revenues $2,233,069 $2,363,499 $2,501,694 $2,648,163 $2,803,423 $2,967,994 Costs
Operations $1,500,213 $1,570,451 $1,644,008 $1,721,042 $1,801,717 $1,886,209 Debt Service $438,974 $438,974 $438,974 $438,974 $438,974 $438,974 Capital Facilities $26,310 $195,855 $214,562 $353,600 $268,642 $572,000 Total Costs $1,965,497 $2,205,280 $2,297,545 $2,513,616 $2,509,334 $2,897,182 Revenues less Costs $267,572 $158,219 $204,149 $134,547 $294,089 $70,812 Grant Projects
Revenues $2,675,366 $6,956,830 $3,657,661 $2,320,000 $0 $0 Expenses $3,975,380 $7,851,478 $2,037,000 $1,746,000 $0 $0 Net Grant Projects ($1,300,014) ($894,648) $1,620,661 $574,000 $0 $0 Ending Balance (rounded) $3,003,000 $2,266,000 $4,091,000 $4,800,000 $5,094,000 $5,164,000 Source: HEC February 2024.
Figure 10 illustrates the total ending cash balances with breakdown of operating reserves, debt service reserve, and all other reserves (which may be used for capital) under rate Alternative 1. Detailed estimates of cash used for capital facilities and grant projects are provided in Tables A-9 and A-10.
The historical and projected wastewater fund ending cash balances are shown in Figure 11 under rate Alternative 1.
Note, figures in Table 13 and figures 10 and 11 may not match exactly due to rounding to thousands of dollars.
Item 5b. 95
Figure 10
Projected Wastewater Fund Ending Cash Balance
$3,003,000
$2,266,000
$4,091,000
$4,800,000
$5,093,000 $5,164,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Gen. Operating Cash
Restricted or Designated Reserves
Debt Service Reserve
Figure 11
Historical and Projected Wastewater Fund Ending Cash Balance $3,313,000
$3,893,000 $4,035,000
$3,003,000
$2,266,000
$4,091,000
$4,800,000
$5,094,000 $5,164,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029
PROJECTED
Item 5b. 96
5.3 RESIDENTIAL BILL IMPACTS
Figure 12 compares the City’s wastewater bill for a single-family home with that of regional communities, and other cities of similar population size.
Regional communities include Cascade Shores, Lake of the Pines, and Lake Wildwood, which have sanitation systems run by Nevada County, and Donner Summit. Cities with similar population range from 1,370 people (Ferndale) to 4,240 (Portola Valley – which is in the Bay Area). The City of Colfax has a population of approximately 2,020.
Rates are lower than in neighboring communities (Lake Wildwood, Lake of the Pines, and Cascade Shores), but are higher than many other California cities of similar size. With the calculated rate increase for fiscal year 2025 under any of the 3 rate alternatives, Colfax’s single family home wastewater bill would remain in the mid to high range of the comparison communities shown.
Figure 12
Residential Regional Bill Comparison
$278
$221
$197
$159 $154 $153 $149 $143
$120
$109 $108 $108 $98
$87 $86 $84 $83
$0
$50
$100
$150
$200
$250
$300
Monthly Wastewater Bill for a Single-Family Home
Item 5b. 97
Item 5b. 98
APPENDIX A
SUPPORTING TABLES FOR CITY OF COLFAX
WASTEWATER RATE STUDY
Item 5b. 99
Item 5b. 100
Table A‐1
City of Colfax Wastewater Rate Study
Historical Population and Housing Units
Jan. 1 Population
Housing
Units
2010 1,963 929
2011 1,984 929
2012 2,013 929
2013 2,058 928
2014 2,070 927
2015 2,069 926
2016 2,097 926
2017 2,113 926
2018 2,131 926
2019 2,139 926
2020 2,001 921
2021 2,005 927
2022 2,038 955
2023 2,016 963
Change 53 34
Avg. % Change 0.21% 0.28%
Source: California Department of Finance.
DRAFT
Item 5b. 101
Table A‐2
City of Colfax Wastewater Rate Study
Historical Annual Changes in Operating Costs
Operating 2019 ‐ 2023
Cost 2019 2020 2021 2022 2023 Change
Personnel $528,685 $619,320 $514,122 $590,667 $637,407 $108,722 4.8% Supplies & Equipment $172,018 $178,544 $133,777 $225,127 $320,355 $148,338 16.8% Communications $11,685 $10,499 $11,423 $15,321 $13,622 $1,937 3.9% Contract Services $87,589 $66,415 $215,750 $78,334 $172,539 $84,949 18.5% Resource Development $1,035 $910 $2,701 $10,466 $4,983 $3,948 48.1% Occupancy $158,639 $152,020 $178,091 $181,766 $189,213 $30,574 4.5% Miscellaneous $121,464 $155,613 $138,247 $147,215 $146,356 $24,892 4.8% Total Operating Costs $1,081,115 $1,183,321 $1,194,112 $1,248,897 $1,484,475 $403,361 8.2% San Francisco Engineering News Record Construction Cost Index (2018‐2023) 5.0% West Region Consumer Price Index (2018‐2023) 4.2%
Source: City financial records, Bureau of Labor Statistics, and the Engineering News Record.
Avg. Annual
% Change
Fiscal Year Ending
DRAFT
Prepared by HEC
2/9/2024 230401 model Draft Report Feb2024 V2
Item 5b. 102
Table A‐3
City of Colfax Wastewater Rate Study
Fund #560 ‐ Operating Fund Historical Revenues and Expenses Revenues and Expenditures Budget
Number Description 2019 2020 2021 2022 2023 2023‐2024
REVENUES
4660 Sewer Service Charges $1,154,885 $1,195,763 $1,213,220 $1,276,877 $1,332,447 $1,372,768 4800 Rent $2,900 $3,000 $3,000 $3,000 $3,000 $3,000
4900 Miscellaneous Revenue $0 $227 $0 $0 $0 $0
4980 Interest Income $52,167 $53,305 $15,709 $12,245 $72,437 $10,000 4982 Interest/Late Charges $16,399 $24,032 $19,451 $19,384 $23,557 $18,000 TOTAL REVENUE $1,226,351 $1,276,327 $1,251,379 $1,311,506 $1,431,441 $1,403,768
EXPENDITURES
Personnel
5010 Salaries and Wages $247,711 $321,562 $247,124 $295,509 $308,805 $385,205 5030 Overtime $1,973 $2,787 $4,287 $2,699 $0 $4,000
5040 Salary ‐ Call back/Standby $11,183 $15,672 $15,545 $18,621 $19,472 $0 5110 Social Security Taxes $19,400 $24,807 $20,407 $23,408 $25,254 $29,468 5115 Unemployment and Training Tax $1,681 $2,245 $2,058 $1,715 $2,494 $2,265 5120 Worker's Compensation $24,016 $18,531 $26,535 $29,724 $23,927 $30,197 5130 Health & Life Insurance $53,791 $56,227 $44,178 $50,760 $64,015 $53,940 5150 Uniform & Shoe Allowances $3,296 $4,022 $2,758 $2,648 $3,046 $3,500 5160 Retirement $21,527 $28,664 $26,031 $29,152 $30,794 $28,571 5175 Temporary $14,132 $0 $2,291 $2,074 $0 $0
Subtotal Personnel $398,710 $474,517 $391,214 $456,310 $477,805 $537,146 Supplies & Equipment
5201 Materials and Supplies $8,877 $26,110 $13,644 $27,819 $27,440 $40,000 5220 Copy Machine $2,587 $1,928 $1,451 $1,557 $1,641 $3,000 5300 Equipment Repairs and Maintenance $50,578 $23,284 $17,448 $58,423 $43,139 $60,000 5320 Vehicle Repairs and Maintenance $618 $1,287 $1,246 $2,533 $3,544 $1,500 5325 Gas & Oil $4,041 $8,102 $4,564 $13,614 $9,258 $1,500 5340 Chemicals $99,656 $98,613 $65,365 $90,176 $198,927 $121,000 5350 Tools Rental $170 $0 $0 $1,863 $5,176 $2,000
Subtotal Supplies & Equipment $166,527 $159,325 $103,718 $195,985 $289,125 $229,000 Communications
5410 Postage $1,247 $1,275 $1,669 $1,290 $1,784 $1,500
5420 Telephone/Internet $2,786 $3,436 $3,721 $3,562 $4,137 $3,800 5425 Cell phone and pagers $3,710 $3,844 $3,564 $3,845 $3,889 $3,800 5440 Printing and Advertising $1,464 $214 $395 $4,894 $1,699 $1,000 Subtotal Communications $9,207 $8,770 $9,349 $13,592 $11,509 $10,100 Contract Services
5540 City Engineering Services $11,428 $4,840 $3,230 $0 $25,935 $5,000 5560 Software Maintenance Contracts $1,626 $1,707 $1,951 $1,882 $11,215 $3,500 5570 Planning Services $0 $0 $105 $0 $0 $0
5650 Auditors $10,673 $10,575 $12,700 $10,810 $11,085 $15,000 5660 Professional Services $42,774 $30,708 $157,203 $51,490 $83,949 $57,500 5665 Legal Fees $864 $2,987 $1,496 $1,081 $8,599 $5,500 Subtotal Contract Services $67,364 $50,817 $176,686 $65,263 $140,782 $86,500 Resource Development
5810 Membership and Dues $912 $768 $643 $4,075 $3,909 $3,500 5815 Conferences and Meetings $0 $0 $0 $0 $0 $500
5820 Education & Training $123 $142 $2,058 $6,391 $1,074 $2,500 5830 Travel and Mileage $0 $0 $0 $0 $0 $500
Subtotal Resource Development $1,035 $910 $2,701 $10,466 $4,983 $7,000 Occupancy
6120 Utilities $136,458 $135,928 $158,393 $149,476 $157,031 $185,000 6140 Repairs & Maintenance $2,966 $272 $141 $3,460 $4,679 $5,000 6160 Security $0 $0 $0 $3,392 $1,283 $3,500
Subtotal Occupancy $139,424 $136,200 $158,534 $156,328 $162,993 $193,500 Miscellaneous
8250 Miscellaneous $0 $0 $952 $607 $3,000 $1,000
8270 Medical Expenses $0 $478 $90 $0 $219 $1,000
8280 Sludge Removal $4,702 $8,934 $9,763 $15,134 $14,785 $10,000 8300 Payments to Other Agencies $25,332 $55,521 $23,168 $24,291 $27,366 $25,000 8400 Bonds and Insurance $26,938 $26,495 $35,117 $36,356 $38,776 $45,000 8525 Testing and Monitoring $40,592 $39,220 $39,827 $35,134 $32,432 $40,000 8530 Bacteria and Lab Test Supplies $9,203 $7,974 $5,982 $4,226 $3,201 $35,000 8532 Acute and Chronic Testing $0 $325 $4,350 $10,890 $4,720 $4,500 Subtotal Miscellaneous $106,766 $138,947 $119,249 $126,639 $124,499 $161,500 TOTAL EXPENDITURES $889,033 $969,486 $961,451 $1,024,583 $1,211,696 $1,224,746 NET INCOME FUND 560 $337,318 $306,841 $289,928 $286,923 $219,745 $179,022 Source: City of Colfax financial records, November 2023.
Fiscal Year Ending Actuals
Treatment Plant
DRAFT
Item 5b. 103
Table A‐4
City of Colfax Wastewater Rate Study
Fund #561 ‐ Operating Fund Historical Revenues and Expenses Revenues and Expenditures Budget
Number Description 2019 2020 2021 2022 2023 2023‐2024
REVENUES
4680 Lift Charges/Collection System $181,181 $187,693 $190,042 $199,716 $208,762 $212,016 4672 Inspection Fees $10,328 $8,140 $9,768 $12,210 $10,582 $10,000 TOTAL REVENUE $191,509 $195,833 $199,810 $211,926 $219,344 $222,016
EXPENDITURES
Personnel
5010 Salaries and Wages $78,062 $97,189 $77,784 $86,484 $105,560 $128,233 5030 Overtime $122 $1,074 $354 $0 $0 $0
5040 Salary ‐ Call Back $10,757 $5,097 $5,051 $5,859 $6,196 $0 5110 Social Security Taxes $6,752 $7,652 $6,387 $6,992 $8,410 $9,810 5115 Unemployment & Training Tax $758 $888 $794 $745 $1,017 $754 5120 Worker's Compensation $7,770 $5,910 $8,304 $9,984 $7,991 $10,052 5130 Health & Life Insurance $18,351 $18,707 $14,979 $15,015 $21,698 $19,050 5150 Uniform & Shoe Allowance $1,012 $1,200 $738 $870 $1,284 $1,200 5160 Retirement $5,655 $7,085 $6,226 $6,525 $7,445 $9,168 5175 Temporary Services $738 $0 $2,291 $1,884 $0 $0
Subtotal Personnel $129,975 $144,803 $122,908 $134,357 $159,602 $178,267 Supplies & Equipment
5201 Materials and Supplies $846 $2,063 $2,196 $571 $2,587 $3,000 5220 Copy Machine $577 $528 $482 $518 $545 $600
5300 Equipment Repairs & Maintenance $693 $9,300 $24,886 $23,175 $18,959 $11,000 5320 Vehicle Repairs & Maintenance $550 $895 $173 $207 $326 $1,000 5325 Gas & Oil $2,824 $6,434 $2,322 $4,671 $4,498 $8,000 5350 Tools Rental $0 $0 $0 $0 $4,316 $1,500
Subtotal Supplies & Equipment $5,490 $19,220 $30,058 $29,142 $31,231 $25,100 Communications
5410 Postage $717 $666 $863 $678 $870 $1,000
5425 Cell Phones and Pagers $1,019 $1,064 $1,011 $1,051 $1,243 $1,100 5440 Printing and Advertising $743 $0 $200 $0 $0 $500
Subtotal Communications $2,478 $1,729 $2,074 $1,729 $2,113 $2,600 Contract Services
5540 City Engineers $5,535 $185 $2,960 $0 $16,388 $5,000 5560 Software Maintenance Contract $697 $732 $768 $807 $847 $2,000 5660 Professional Services $13,994 $14,681 $35,276 $11,504 $13,689 $13,000 5820 Education and Training $0 $0 $61 $760 $833 $0
5830 Travel and Milege Reimbursement $0 $0 $0 $0 $0 $500 Subtotal Contract Services $20,225 $15,598 $39,065 $13,071 $31,756 $20,500 Occupancy
6120 Utilities $18,550 $15,043 $16,732 $24,003 $25,471 $23,000 6125 Water $497 $441 $483 $529 $513 $500
6140 Building Repairs and Maintenance $168 $336 $564 $504 $236 $500 6160 Security $0 $0 $1,778 $402 $0 $1,000
Subtotal Occupancy $19,215 $15,820 $19,557 $25,438 $26,220 $25,000 Miscellaneous
8250 Miscellaneous $0 $0 $154 $0 $0 $0
8300 Payments to Other Agencies $3,521 $4,277 $4,500 $5,110 $5,362 $5,500 8400 Bonds and Insurance $11,177 $10,823 $14,345 $15,466 $16,496 $18,500 8525 Testing and Monitoring $0 $1,566 $0 $0 $0 $0
Subtotal Miscellaneous $14,698 $16,666 $18,998 $20,576 $21,858 $24,000 TOTAL EXPENDITURES $192,082 $213,836 $232,660 $224,314 $272,780 $275,467 NET INCOME FUND 561 ($573) ($18,003) ($32,850) ($12,388) ($53,436) ($53,451) Source: City of Colfax financial records, November 2023.
Fiscal Year Ending Actuals
Collection Systems/Lift Stations
DRAFT
Item 5b. 104
Table A‐5
City of Colfax Wastewater Rate Study
Fund #563 ‐ Operating Fund Historical Revenues and Expenses Revenues and Expenditures Budget
Number Description 2019 2020 2021 2022 2023 2023‐2024
REVENUES
4662 Debt Service Charges $519,497 $537,894 $546,350 $574,237 $599,436 $617,565 4940 Sale of Property $0 $0 $0 $58,000 $0 $0
4982 Interest/Late Charges $6,540 $8,995 $7,884 $7,683 $8,823 $5,000 TOTAL REVENUE $526,037 $546,889 $554,234 $639,920 $608,259 $622,565
EXPENDITURES
8710 Interest Expense $80,403 $76,817 $73,195 $69,538 $65,843 $79,500 8250 Miscellaneous $360 $0 $430 $0 $0 $0
TOTAL EXPENDITURES [1] $80,763 $76,817 $73,625 $69,538 $65,843 $79,500 NET INCOME FUND 563 $445,274 $470,072 $480,609 $570,383 $542,415 $543,065 Source: City of Colfax financial records, November 2023.
Fiscal Year Ending Actuals
WWTP Debt Service
DRAFT
Item 5b. 105
Table A‐6
City of Colfax Wastewater Rate Study
Summary of CIP Estimated Costs in Inflated Dollars
Description Total FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 inflation assumption ‐‐‐> 4.0% 4.0% 4.0% 4.0% 4.0%
Treatment Plant
SCADA tie in of chemical feed systems $15,600 $0 $0 $15,600 $0 $0 3 New Blowers and VFDs $208,000 $0 $0 $104,000 $104,000 $0 Filter rehabilitation $104,000 $0 $0 $104,000 $0 $0
All Control Systems connected to SCADA $156,000 $0 $78,000 $78,000 $0 $0 Facility Electrical rehabilitation $156,000 $0 $0 $0 $0 $156,000 Fork Lift $62,400 $0 $62,400 $0 $0 $0
Boom truck $78,000 $0 $0 $0 $78,000 $0
Service (Tool) truck with crane $104,000 $104,000 $0 $0 $0 $0 Combination sewer truck $364,000 $0 $0 $0 $0 $364,000
Service contract ‐ Trojan Uv $9,081 $9,081 $0 $0 $0 $0
Service contract ‐ Generators $11,014 $11,014 $0 $0 $0 $0 Service contract ‐ Server & PLC maintenance $15,600 $15,600 $0 $0 $0 $0 Service contract ‐ SSMP $4,160 $4,160 $0 $0 $0 $0
Gantry crane purchase $0 $0 $0 $0 $0 $0
UV Modules Maintenance (60) $44,325 $0 $22,162 $0 $22,162 $0 Ponds
Pond 3 service road repair $52,000 $52,000 $0 $0 $0 $0
Pond #2 dredging $12,480 $0 $0 $0 $12,480 $0
Lift Station 1
Replacement pump $36,400 $0 $0 $36,400 $0 $0
Panelview HM $15,600 $0 $0 $15,600 $0 $0
Lift Station 2
Replacement pump $36,400 $0 $36,400 $0 $0 $0
Panelview HM $15,600 $0 $15,600 $0 $0 $0
Lift Station 3
Replacement pump $36,400 $0 $0 $0 $36,400 $0
Panelview HM $15,600 $0 $0 $0 $15,600 $0
Lift Station 4
Replacement pump $36,400 $0 $0 $0 $0 $36,400
Panelview HM $15,600 $0 $0 $0 $0 $15,600
Total Wastewater Treatment Plant Improvements $1,604,660 $195,855 $214,562 $353,600 $268,642 $572,000 Source: City of Colfax February 2024.
DRAFT
Item 5b. 106
Table A‐7
City of Colfax Wastewater Rate Study
Summary of CIP Estimated Costs in 2023 Dollars
Description Total FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Treatment Plant
SCADA tie in of chemical feed systems $15,000 $0 $0 $15,000 $0 $0 3 New Blowers and VFDs $200,000 $0 $0 $100,000 $100,000 $0 Filter rehabilitation $100,000 $0 $0 $100,000 $0 $0
All Control Systems connected to SCADA $150,000 $0 $75,000 $75,000 $0 $0 Facility Electrical rehabilitation $150,000 $0 $0 $0 $0 $150,000 Fork Lift $60,000 $0 $60,000 $0 $0 $0
Boom truck $75,000 $0 $0 $0 $75,000 $0
Service (Tool) truck with crane $100,000 $100,000 $0 $0 $0 $0 Combination sewer truck $350,000 $0 $0 $0 $0 $350,000
Service contract ‐ Trojan Uv $8,732 $8,732 $0 $0 $0 $0
Service contract ‐ Generators $10,590 $10,590 $0 $0 $0 $0 Service contract ‐ Server & PLC maintenance $15,000 $15,000 $0 $0 $0 $0 Service contract ‐ SSMP $4,000 $4,000 $0 $0 $0 $0
Gantry crane purchase $0 $0 $0 $0 $0 $0
UV Modules Maintenance (60) $42,620 $0 $21,310 $0 $21,310 $0 Ponds
Pond 3 service road repair $50,000 $50,000 $0 $0 $0 $0
Pond #2 dredging $12,000 $0 $0 $0 $12,000 $0
Lift Station 1
Replacement pump $35,000 $0 $0 $35,000 $0 $0
Panelview HM $15,000 $0 $0 $15,000 $0 $0
Lift Station 2
Replacement pump $35,000 $0 $35,000 $0 $0 $0
Panelview HM $15,000 $0 $15,000 $0 $0 $0
Lift Station 3
Replacement pump $35,000 $0 $0 $0 $35,000 $0
Panelview HM $15,000 $0 $0 $0 $15,000 $0
Lift Station 4
Replacement pump $35,000 $0 $0 $0 $0 $35,000
Panelview HM $15,000 $0 $0 $0 $0 $15,000
Total Wastewater Treatment Plant Improvements $1,542,942 $188,322 $206,310 $340,000 $258,310 $550,000 Source: City of Colfax February 2024.
DRAFT
Item 5b. 107
Table A‐8
City of Colfax Wastewater Rate Study
Historical Wastewater Fund Ending Cash Balances
Cash Category 2019 2020 2021 2022 2023
Restricted Cash
Debt Service Reserve $438,974 $438,974 $438,974 $438,974 $438,974 Pond 3 Fissure Resource Proceeds $292,194 $231,945 $0 $0 $0 Capital Improvements * $55,892 $282,031 $351,119 $443,018 $321,775 Replacement Short‐Lived Assets * $167,565 $205,065 $202,565 $240,065 $277,565 Restricted Cash $954,625 $1,158,015 $992,658 $1,122,057 $1,038,314 Unrestricted Cash $1,756,045 $2,064,508 $2,320,407 $2,770,481 $2,996,738 Total Cash Balance $2,710,670 $3,222,523 $3,313,065 $3,892,538 $4,035,052 Change in Cash Balance $649,116 $511,853 $90,542 $579,473 $142,514 Source: City of Colfax audited financials.
* Designated by the City for capital projects; not restricted by third parties.
Fiscal Year Ending, June 30th
DRAFT
Item 5b. 108
Table A‐9
City of Colfax Wastewater Rate Study
Reserves Available for Capital Projects (Grant Projects Excluded) Reserve FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Fund 12345
Operating Reserve (Unrestricted)
Beginning Balance $460,000 $510,000 $560,000 $610,000 $660,000 $710,000 Transfer from Operating Fund $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 Ending Balance a $510,000 $560,000 $610,000 $660,000 $710,000 $760,000 Capital Reserve (Unrestricted)
Beginning Balance $500,000 $923,690 $1,407,835 $1,493,273 $1,464,673 $1,546,030 less Capital Projects ($26,310) ($195,855) ($214,562) ($353,600) ($268,642) ($572,000) Transfer from Operating Fund $450,000 $680,000 $300,000 $325,000 $350,000 $500,000 Ending Balance b $923,690 $1,407,835 $1,493,273 $1,464,673 $1,546,030 $1,474,030 Capital Improvements (Designated)
Beginning Balance $321,775 $357,394 $393,995 $431,605 $470,252 $509,964 Connection Fees $35,619 $36,601 $37,610 $38,647 $39,712 $40,806 Ending Balance c $357,394 $393,995 $431,605 $470,252 $509,964 $550,770 Replacement Short‐Lived Assets (Designated)
Beginning Balance $277,565 $314,689 $351,813 $388,937 $426,061 $463,185 Transfer from Operating Fund $37,124 $37,124 $37,124 $37,124 $37,124 $37,124 Ending Balance d $314,689 $351,813 $388,937 $426,061 $463,185 $500,309 Reserve Funds Available for Capital
Projects / Grant Reimbursement
e =
a+b+c $2,105,773 $2,713,644 $2,923,815 $3,020,986 $3,229,179 $3,285,109 Debt Service Reserve (Restricted) [1] $438,974 $438,974 $438,974 $438,974 $438,974 $438,974 Source: City of Colfax financial records and HEC, February 2024. [1] Fully funded per requirement of the SRF loan.
DRAFT
Item 5b. 109
Table A‐10
City of Colfax Wastewater Rate Study
Estimated (Designated) Reserve Funds Balance with Grant Projects Project Total FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Description 1234 5
$1,559,340 $805,759 $518,982 $2,349,814 $3,020,985 $3,229,178 Estimated Drawdowns [1]
Consolidation Project (Planning) $5,820,000 $582,000 $1,455,000 $2,037,000 $1,746,000 Consolidation Construction $0 $0 $0
Collection System I&I $5,225,633 $1,567,690 $3,657,943
WWTP Algae Reduction Project $4,564,224 $1,825,690 $2,738,534 Subtotal Estimated Drawdowns $15,609,857 $3,975,380 $7,851,478 $2,037,000 $1,746,000 $0 $0 Estimated Reimbursements
Consolidation Project (Planning) $5,820,000 $300,000 $1,200,000 $2,000,000 $2,320,000 Consolidation Construction $0 $0 $0
Collection System I&I $5,225,633 $1,097,383 $3,292,149 $836,101 WWTP Algae Reduction Project $4,564,224 $1,277,983 $2,464,681 $821,560 Subtotal Estimated Reimbursements $15,609,856 $2,675,366 $6,956,830 $3,657,661 $2,320,000 $0 $0 Cash from Rates & Connection Fees $546,433 $607,870 $210,171 $97,171 $208,193 $55,930 Ending Reserves Balance $805,759 $518,982 $2,349,814 $3,020,985 $3,229,178 $3,285,109 Source: HEC February 2024.
[1] Drawdowns based on percentage of project:
Consolidation Project (Planning) 100% 10% 25% 35% 30%
Consolidation Construction 70% 30% 40%
Collection System I&I 100% 30% 70%
WWTP Algae Reduction Project 100% 40% 60%
Reserve Funds Available for Capital Projects /
Reimbursement from Grants
DRAFT
Item 5b. 110
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Item 5b. 111
Wastewater Rate Study
All figures are DRAFT until the Public Hearing
CITY OF COLFAX
City Council Meeting Presentation
February 28, 2024
1 Item 5b.
112
Purpose of the Rate Study
2 • Revenue Sufficiency – to operate the wastewater system for the next 5 years, disposing of wastewater safely while
meeting all regulatory requirements, for the residents and businesses in Colfax
• Fund the CIP – create adequate revenue for funding of capital improvements projects (CIP)
• Ensure Adequate Reserves – to ensure sufficient cash flow (especially now while waiting for State grant‐funded project reimbursements), and to provide funds for emergencies
• Fulfill Financial Agreement Obligations – Meet State SRF loan restricted cash and debt service coverage requirements
Item 5b.
113
Rate Study supports the Enterprise Fund
Operating expenses areprimarily funded by:
Water Rates ‐ charges that
customers pay for theservices they receive
Capital expenses areprimarily funded by:
Water RatesConnection Fees
3 Item 5b.
114
Rate Setting Process
Typically, every 5 yearsStrive to meet multipleobjectives 4 Item 5b.
115
5 Revenue
Sufficiency
Simple &
Logical
Utility Billing
Compatible
Signal Value
of Service
Support City
Goals
Multiple
Objectives
Item 5b.
116
Proposition 218 Requirements
1. Revenues from the fee shall not exceed funds required to provide the service.
2. Revenues from the fee shall not be used for any purpose other than that for which it was imposed.
3. The amount of the fee imposed as an incident of property ownership shall not exceed the proportional cost of service to the parcel.
4. No fee may be imposed for service unless the service is used OR is immediately available to the parcel.
5. No fee may be imposed for general governmental services (such as police, fire, library) where the service is available to the public at large in much the same manner as to the parcels charged the fee.
Item 5b.
117
Major Assumptions
• No Change to the Rate Structure
EDU structure appropriate and typical for smaller systems with no industrial customers & customers have similar wastewater strength; all customers who have paid connection fees pay per EDU as the system is ready to receive their wastewater flow
• Growth
Continued historical trend 3 EDUs per year
• Potential Shady Glen Consolidation
Grant‐funded feasibility study costs included; IF construction will start in next 5 years, the City will have to undertake a rate study update • No New Debt
7 Item 5b.
118
EDU Fee Structure
An EDU is defined in City Ordinance 475 as the average
wastewater discharge from a Single‐Family Dwelling. One EDU is considered to generate domestic wastewater, carrying minimal to moderate load of non‐hazardous contaminants such as common household cleaning and maintenance products.
EDUs are assigned by the City at time of application for service, depending on the intended use(s) of the property. The number of EDUs are reviewed upon change in building use and/or application for building alterations.
8 Item 5b.
119
Wastewater Generation by Customers
9 Residential
70%
Commercial
21%
Institutional
9%
Item 5b.
120
Revenue Requirement
Determine funding needed to
meet financial needs
Operations &
Maintenance
Capital ImprovementsSystem Rehabilitation
Debt ServicePrudent Reserves
10 Item 5b.
121
Wastewater Fund Operating Expenses
11 Personnel
47%
Supplies &
Equipment
Communications 16%
1%
Contract
Services
10%
Occupancy
14%
All Other
12%
Item 5b.
122
Financial Health Criteria
Based on guidelines provided by the Government Finance
Officers Association
1. Maintain general operating cash reserves at least 75% of operating expenses
2. A minimum $950,000 shall be kept in restricted and designated reserves to cover the SRF loan reserve requirement of $439,000plus at least $500,000 for capital expenses
3. Each year, the net operating income will exceed debt service by at least 1.25
12 Item 5b.
123
Fee Level Alternatives for Wastewater
13 Alternative Modeling EffectAlternative 1 Continue to fund system rehabilitation at 15% of
depreciation each year. Rates
increase 5.75% each year.
Additional funds for
future repairs
accumulated over 5
years of $650,000.
Alternative 2 Stop putting money aside for
system rehabilitation because
sufficient cash reserves have
been accumulated. Rates
increase 4.00% each year.
No additional cash
accumulated for future
repairs.
Alternative 3 Revenue requirement not fully
funded with rates. Cash reserves
used to pay for a portion of
capital project costs. Rates
increase 2.00% each year.
Cash reserves about
$155,000 drawn downto pay for repairs in
next 5 years.
Item 5b.
124
Projected Revenue Requirement & Revenues
(Alternative 1)
14 $1,000,000$1,200,000$1,400,000$1,600,000$1,800,000$2,000,000$2,200,000$2,400,000$2,600,000$2,800,000$3,000,000 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Revenue Requirement Increased Rates RevenueRevenue No Rate Increase Item 5b.
125
Monthly EDU Fee (Alternative 1)
• 5.75% increase each year
15 $143.07 $151.30 $160.00 $169.20 $178.93 $189.22
$0
$20$40$60$80
$100$120$140$160$180$200
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Current
Item 5b.
126
Components of Projected Cash Balances
(Alternative 1)
$3,003,000
$2,266,000
$4,091,000
$4,800,000
$5,093,000 $5,164,000
$0
$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Gen. Operating CashRestricted or Designated ReservesDebt Service Reserve 16 Item 5b.
127
Historical & Projected Cash Balances
(Alternative 1)
17 $3,313,000
$3,893,000 $4,035,000
$3,003,000
$2,266,000
$4,091,000
$4,800,000
$5,094,000 $5,164,000
$0
$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029
PROJECTED
Item 5b.
128
Projected Wastewater Fund Cash Balances
under Alternative Fee Levels
• Minimum implies reserves should be greater than target shown 18 $0
$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000 2025 2026 2027 2028 2029
Alt. 1 Rate (5.75%) Alt. 2 Rate (4.00%)Alt. 3 Rate (2.00%) Min. Target ReserveBeginning FY2024 Item 5b.
129
Summary of Calculated Wastewater Rates
under Alternative Fee Levels
19 $151.30
$160.00
$169.20
$178.93
$189.22
$148.79
$154.74
$160.93
$167.37
$174.06
$145.93
$148.85 $151.83 $154.87 $157.97
$143.07
$120$130$140$150$160$170$180$190$200
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Alt. 1 Rate (5.75%) Alt. 2 Rate (4.00%)Alt. 3 Rate (2.00%) Current Rate Item 5b.
130
Comparison Wastewater Bills for a Home
20 $278
$221
$197
$159 $154 $153 $149 $143
$120
$109 $108 $108 $98
$87 $86 $84 $83
$0
$50
$100$150$200$250$300
Item 5b.
131
Next Steps: Rate Adoption
21 Item 5b.
132
Adoption Timeline
22 February 28,
2024
Council
input on Fee
Level
Alternatives
March 27,
2024
Draft Final
Report
Presentation
April 5,
2024
Last day to
mail
Proposition
218 Notices
May 2024
OPTIONAL
Public
Workshop
June 13,
2024
Public
Hearing &
Fee
Resolution
July 1,
2024
New
Rates
Effective
Item 5b.
133
Customer’s Right to Protest
• Every property owner has the right to protest the proposed rates included in the Proposition 218 notice
• Only one protest per parcel can be counted*
• Protest must be mailed or otherwise physically submitted in handwriting to the City – electronic submittals are invalid • A valid protest will be counted if received by close of the public hearing and it includes:
1. Customer’s name (must be legible)
2. Address or Assessor Parcel Number of the property
3. A statement of the rates being protested
4. Signature and Date
*Protests must be filed with the City for a period of 2 years 23 Item 5b.
134
Adoption of New Rates
• Upon close of the public hearing, the protests are counted. • If >50% of the owners of public record protest (separately for each utility), the City cannot proceed.
• Absent a majority protest, the City can proceed with adoption of maximum rates.
• At any time in the next 5 years, the City can freeze or reduce the rates shown on the notice but cannot increase them
without another Proposition 218 public noticing process. 24 Item 5b.
135
Customer’s Rights after Adoption of Rates
As of January 1, 2022, pursuant to Government Code 53759(d), there is a 120‐day state of limitation for ratepayers to challenge increased rates.
Any challenge must be filed within 120 days of the effective date or date of final passage, adoption, or approval of the resolution adopting the wastewater rates.
25 Item 5b.
136
City of Colfax Fiscal Year 2023-2024 Mid-Year Operating Budget Review Staff Report February 28, 2024
Staff Report to City Council
FOR THE FEBRUARY 28, 2024 REGULAR CITY COUNCIL MEETING
From: Ron Walker, City Manager
Prepared by: Laurie Van Groningen, Finance Director
Subject: Fiscal Year 2023-2024 Mid-Year Operating Budget Review Budget Impact Overview:
N/A: √ Funded: Un-funded: Amount: Fund(s):
Summary/Background
In accordance with City financial policy, the City Manager will provide the City Council with a mid-year review of the City’s financial activities. The review will be presented in February and compare annual budget projections (adopted budget) with actual results (projected actuals).
City staff has completed a detailed review for Fiscal Year 2023-2024 of all Funds for all operating revenue and expense accounts. The review is based on six months of actual revenues and expenditures (through December 31, 2023) and projections for the balance of the fiscal year based on current City activities and programs.
The attached Mid-Year Operating Budget Review – Fund Summary report provides a summarized comparison of fiscal year end projected actuals to the adopted budget by fund and department. The projected actuals reflect a slight overall increase in both revenues and expenses as further summarized in the chart below:
Classification
Projected Actuals
02/22/24
Adopted Budget
FY2023-2024
Difference
Recommended
adjustments Percent of Budget
Operating Revenues $5,616,710 $5,258,767 $357,943 6.8%
Operating Expenses $5,052,543 $4,904,786 $147,756 3.0%
Detailed schedules for the Difference/Recommended adjustments in revenues and expenditures by City fund, department, and account are attached to this report. A brief description for the projected difference is included for each line item. Some of the primary contributors to projected differences are described below:
1. Transient Occupancy Taxes are projected lower than had been budgeted.
2. Increased COPS grant revenue (ELEAS credit) for law enforcement was not budgeted – this credit is not guaranteed each fiscal year. COPS grant revenue is reported in Fund 218 – the balance of the annual Sheriff contract is in Fund 100-300.
3. Increase in LAIF interest rates resulting in an increase of projected interest earnings.
RECOMMENDED ACTION: Review fiscal year 2023-2024 mid-year budget report and approve budget amendments
Item 5c. 137
City of Colfax Fiscal Year 2023-2024 Mid-Year Operating Budget Review Staff Report February 28, 2024
4. Staffing vacancies across all operations resulted in decreased personnel expenses and increase to Professional Services to fill vacancies.
5. The City continues to rely on contracted services for Engineering, Planning, Legal and Finance services.
Costs fluctuate based on City projects and activities.
6. The Wastewater Treatment Plant has several large equipment repair expenses pending that will also require large equipment rental expenses.
7. The cost of property and worker’s compensation insurance was higher than budgeted for the fiscal year.
8. There will not be a transit services expense this fiscal year as budgeted.
9. The cost of chemicals to operate the Wastewater Treatment Plant continues to rise beyond budgeted expectations.
10. We are conducting a 5-year sewer rate study which added to the overall Professional Services cost for the Wastewater fund. This was budgeted for the fiscal year 2022-2023, but was delayed a year.
Recommendation
The results of this Mid-Year Budget review will be incorporated into the development of the Fiscal Year 2024- 2025 and Fiscal Year 2025-2026 budgets. The calendar of activities for the biennial budget process has been developed and is included as an attachment to this report. In addition to the budget development, we will also be completing our regular annual financial processes:
• Review of Accounting Procedure
• Review of Investment Policy
• Establish Gann Appropriation Limit fiscal year 2023-2024 • Fraud/Risk Discussions
Staff recommends that Council accepts the Mid-Year Budget Report and Recommended budget adjustments for fiscal year 2023-2024.
Attachments:
1. Mid-Year Operating Budget Review – Fund Summary
2. Mid-Year Operating Budget Review – Revenue Adjustments
3. Mid-Year Operating Budget Review – Expense Adjustments
4. Budget Process – Calendar of Activities
Item 5c. 138
Fund Dept
Projected
Actuals MYR
Adopted
Budget FY2023-
2024
Difference
Recommended
adjustments
Projected
Actuals MYR
Adopted
Budget FY2023-
2024
Difference
Recommended
adjustments
Projected
Actuals MYR
Adopted
Budget FY2023-
2024
Difference
Recommended
adjustments
General Fund - Unrestricted
100 000 2,597,576 2,425,436 172,140 - 2,597,576 2,425,436 172,140 100 100 Central Services - - 265,010 258,710 6,300 (265,010) (258,710) (6,300) 100 110 City Council - - 127,300 127,300 - (127,300) (127,300) - 100 120 Administration/Finance - - 295,514 297,269 (1,755) (295,514) (297,269) 1,755 100 160 Legal - - 104,500 104,500 - (104,500) (104,500) - 100 200 Fire - - 85,700 85,700 - (85,700) (85,700) -
100 300 Sheriff - - 735,329 777,789 (42,460) (735,329) (777,789) 42,460 100 400 Building Department - - 75,000 75,000 - (75,000) (75,000) - 100 425 Engineering - - 100,000 160,000 (60,000) (100,000) (160,000) 60,000 100 450 Planning - - 60,000 50,000 10,000 (60,000) (50,000) (10,000) 100 500 Buildings and Grounds - - 197,972 207,529 (9,557) (197,972) (207,529) 9,557 100 530 Parks - - 163,472 176,279 (12,807) (163,472) (176,279) 12,807 100 000 Land Development 100,000 100,000 - 76,000 76,000 - 24,000 24,000 - Total General Fund - Unrestricted 2,697,576 2,525,436 172,140 2,285,797 2,396,076 (110,279) 411,779 129,360 282,419 General Fund - Restricted
572 000 Landfill - Postclosure Maint 95,000 95,000 - 96,738 103,991 (7,253) (1,738) (8,991) 7,253 Total General Fund - Restricted 95,000 95,000 - 96,738 103,991 (7,253) (1,738) (8,991) 7,253 Special Revenues
210-17 000 Mitigation Funds 15,125 1,085 14,040 5,850 - 5,850 9,275 1,085 8,190 218 000 Support Law Enforcement 186,000 100,000 86,000 186,000 100,000 86,000 - - - 241-44 000 CDBG Program Income 6,000 6,000 - 6,000 6,000 - - - - 250 000 Streets-Roads/Transportation 158,900 163,773 (4,873) 314,501 340,533 (26,032) (155,601) (176,760) 21,159 253 000 Gas Taxes 69,014 69,014 - 22,000 19,000 3,000 47,014 50,014 (3,000) 258 001 Road Maintenance/SB1 55,510 49,910 5,600 - - - 55,510 49,910 5,600 270 000 Beverage Container Recycling 500 - 500 - - - 500 - 500 280 000 Oil Recycling 100 - 100 - - - 100 - 100
290 000 SB1383 Compliance 20,714 - 20,714 - - - 20,714 - 20,714 292 000 Fire Capital Fund - - - - - - - - -
342/343 000 Fire & Rec Const Mitigation 8,922 200 8,722 - - - 8,922 200 8,722 Total Special Revenues 520,785 389,982 130,803 534,351 465,533 68,818 (13,566) (75,551) 61,985 Enterprise Funds
560 - Sewer WWTP Maint and Ops 1,458,768 1,403,768 55,000 1,315,149 1,224,746 90,403 143,619 179,022 (35,403) 561 - Sewer Collections Systems 222,016 222,016 - 381,534 275,467 106,067 (159,519) (53,451) (106,067) 563 - WWTP/Debt Service 622,565 622,565 - 438,974 438,974 - 183,591 183,591 - XXX - Reserves - - - - - - - -
Total Enterprise Funds 2,303,349 2,248,349 55,000 2,135,657 1,939,187 196,471 167,692 309,162 (141,471) TOTAL ALL FUNDS 5,616,710 5,258,767 357,943 5,052,543 4,904,786 147,756 564,167 353,981 210,187 City of Colfax - FY2023-2024
Mid Year Operating Budget Review - Fund Summary (Does not include capital expenditures, transfers and reserve allocations) Revision Date: February 28, 2024
Revenues Expenses
Net Change in Fund Balance
(Revenues - Expenses)
Item 5c. 139
Fund Dept
GL
Code Description
Projected
Actuals
02/28/2024
Adopted
Budget FY2023-
2024
Difference
Recommended
adjustments Sub-total Explanation
100 000 4010 Property Taxes $ 465,000 $ 424,360 $ 40,640 Based on actuals to date 100 000 4030 Cannabis Business Tax $ 37,000 $ 45,000 $ (8,000) Based on actuals to date 100 000 4210 Plan Check Fees $ 12,000 $ 15,000 $ (3,000) Based on actuals to date 100 000 4630 Court Fines $ 1,000 $ 2,500 $ (1,500) Based on actuals to date 100 000 4040 Transient Occupancy Tax $ 130,000 $ 95,000 $ 35,000 Based on actuals to date 100 000 4800 Rents & Leases $ 13,000 $ 9,000 $ 4,000 New tenant - Based on actuals to date 100 000 4980 Interest Income $ 120,000 $ 15,000 $ 105,000 Increase in interest rates $ 172,140
210 000 4980 Interest Income $ 4,000 $ - $ 4,000 Based on actuals to date 211 000 4980 Interest Income $ 125 $ 15 $ 110 Based on actuals to date 212 000 4980 Interest Income $ 2,000 $ 175 $ 1,825 Based on actuals to date 213 000 4980 Interest Income $ 4,500 $ 500 $ 4,000 Based on actuals to date 214 000 4980 Interest Income $ 2,800 $ 225 $ 2,575 Based on actuals to date 215 000 4980 Interest Income $ 600 $ 50 $ 550 Based on actuals to date 217 000 4980 Interest Income $ 1,100 $ 120 $ 980 Based on actuals to date 218 000 4998 Transfer In - State Grant $ 186,000 $ 100,000 $ 86,000 Received ELEAS credit 250 000 4540 Local Transportation Fund $ 139,904 $ 148,062 $ (8,158) Based on actuals to date 250 000 4541 State Transit Assistance Fund $ 18,896 $ 15,611 $ 3,285 Based on actuals to date 258 000 4980 Interest Income $ 6,000 $ 400 $ 5,600 Based on actuals to date 270 000 4980 Interest Income $ 500 $ - $ 500 Based on actuals to date 280 000 4980 Interest Income $ 100 $ - $ 100 Based on actuals to date 290 000 4560 State Grant $ 20,214 $ - $ 20,214 Based on actuals to date 290 000 4980 Interest Income $ 500 $ - $ 500 Based on actuals to date 342 000 4250 Fire Construction Fees $ 2,461 $ 100 $ 2,361 Based on actuals to date 342 000 4980 Interest Income $ 2,000 $ - $ 2,000 Based on actuals to date 343 000 4260 Recreation Construction Fees $ 2,461 $ 100 $ 2,361 Based on actuals to date 343 000 4980 Interest Income $ 2,000 $ - $ 2,000 Based on actuals to date $ 130,803
560 000 4980 Interest Income (LAIF) $ 65,000 $ 10,000 $ 55,000 Increase in Interest rates $ 55,000
$ 357,943
Note: Only accounts with significant projected differences are included on this report Total City - Operating Revenue Adjustments
Total Enterprise Funds
City of Colfax - FY2023-2024
Mid Year Operating Budget Review - Revenue Adjustments
Revision Date: February 28, 2024
General Fund - Unrestricted
Total Special Revenues
Item 5c. 140
Fund Dept
GL
Code Description
Projected
Actuals
02/22/24
Adopted
Budget FY2023-
2024
Difference
Recommended
adjustments Sub-total Explanation
100 100 8320 LAFCO Fees $ 2,300 $ 1,000 $ 1,300 Based on actual expenditures and current activity 100 100 8400 Bonds and Insurance $ 55,000 $ 50,000 $ 5,000 Based on actual expenditures and current activity 100 120 5010 Salaries & Wages $ 120,000 $ 146,751 $ (26,751) Based on actual expenditures and current activity 100 120 5660 Professional Services $ 90,000 $ 66,200 $ 23,800 Based on actual expenditures and current activity - Staffing challenges 100 120 5120 Workmen's Compensation $ 12,100 $ 11,504 $ 596 Based on actual expenditures and current activity 100 120 5815 Conferences and Meetings $ 1,600 $ 1,000 $ 600 Based on actual expenditures and current activity 100 300 5600 Sheriff Protection Services $ 735,329 $ 777,789 $ (42,460) Received ELEAS credit - reduces expense in 100-300 (See Fund 218) 100 425 5540 Engineering Services $ 100,000 $ 160,000 $ (60,000) Based on actual expenditures and current activity 100 450 5570 Planning Services $ 60,000 $ 50,000 $ 10,000 Based on actual expenditures and current activity 100 500 5010 Salaries & Wages $ 65,000 $ 75,757 $ (10,757) Based on actual expenditures and current activity 100 500 6125 Water $ 4,200 $ 3,750 $ 450 Based on actual expenditures and current activity 100 500 6160 Security $ 4,000 $ 3,750 $ 250 Based on actual expenditures and current activity 100 500 5325 Gas & Oil $ 3,500 $ 3,000 $ 500 Based on actual expenditures and current activity 100 530 5010 Salaries & Wages $ 65,000 $ 75,757 $ (10,757) Based on actual expenditures and current activity 100 530 5425 Cell Phone & Pagers $ 1,200 $ 1,000 $ 200 Based on actual expenditures and current activity 100 530 6120 Utilities $ 5,000 $ 4,500 $ 500 Based on actual expenditures and current activity 100 530 6125 Water $ 22,000 $ 20,000 $ 2,000 Based on actual expenditures and current activity 100 530 6140 Building Repairs & Maintenance $ 5,000 $ 10,000 $ (5,000) Based on actual expenditures and current activity 100 530 5325 Gas & Oil $ 3,250 $ 3,000 $ 250 Based on actual expenditures and current activity $ (110,279)
572 000 5010 Salary & Wages $ 23,000 $ 38,353 $ (15,353) Based on actual expenditures and current activity 572 000 5201 Materials & Supplies $ 2,000 $ 500 $ 1,500 Based on actual expenditures and current activity 572 000 5325 Gas & Oil $ 700 $ 600 $ 100 Based on actual expenditures and current activity 572 000 5660 Professional Services $ 13,000 $ 6,500 $ 6,500 Based on actual expenditures and current activity - Staffing challenges $ (7,253)
213 000 6140 Building Repairs & Maintenance $ 5,850 $ - $ 5,850 Based on actual expenditures and current activity 218 000 5620 Sheriff Protection Services $ 186,000 $ 100,000 $ 86,000 Received ELEAS credit - reduces expense in 100-300 250 000 5010 Salaries & Wages $ 90,000 $ 106,671 $ (16,671) Based on actual expenditures and current activity 250 000 5425 Cell Phone & Pagers $ 1,750 $ 1,500 $ 250 Based on actual expenditures and current activity 250 000 5300 Equipment Repairs & Maintenance $ 3,000 $ 2,500 $ 500 Based on actual expenditures and current activity 250 000 5320 Vehicle Repairs & Maint $ 6,000 $ 2,000 $ 4,000 Based on actual expenditures and current activity 250 000 5325 Gas & Oil $ 6,000 $ 4,500 $ 1,500 Based on actual expenditures and current activity 250 000 5590 Transit Services $ - $ 15,611 $ (15,611) Based on actual expenditures and current activity 253 000 5300 Equipment Repairs & Maintenance $ 3,000 $ - $ 3,000 Based on actual expenditures and current activity $ 68,818
560 000 5010 Salaries & Wages $ 320,000 $ 385,205 $ (65,205) Based on actual expenditures and current activity 560 000 5040 Salary - Call Back $ 18,480 $ - $ 18,480 Based on actual expenditures and current activity 560 000 5201 Materials & Supplies $ 70,000 $ 40,000 $ 30,000 Based on actual expenditures and current activity 560 000 5320 Vehicle Repairs & Maint $ 3,000 $ 1,500 $ 1,500 Based on actual expenditures and current activity 560 000 5325 Gas & Oil $ 5,000 $ 1,500 $ 3,500 Based on actual expenditures and current activity 560 000 5340 Chemicals $ 140,000 $ 121,000 $ 19,000 Based on actual expenditures and current activity 560 000 5410 Postage $ 1,750 $ 1,500 $ 250 Based on actual expenditures and current activity 560 000 5420 Telephone/Internet $ 4,200 $ 3,800 $ 400 Based on actual expenditures and current activity 560 000 5540 City Engineering $ 9,000 $ 5,000 $ 4,000 Based on actual expenditures and current activity - Metal Bldgs 560 000 5560 Software Maintenance Contracts $ 11,500 $ 3,500 $ 8,000 Increased $8500 annual asset management system 560 000 5660 Professional Services $ 112,978 $ 57,500 $ 55,478 Based on actual expenditures and current activity - Rate Study $33K 560 000 8280 Sludge Removal $ 15,000 $ 10,000 $ 5,000 Based on actual expenditures and current activity Total Special Revenue Funds
Total General Fund - Unrestricted
City of Colfax - FY2023-2024
Mid Year Operating Budget Review - Expense Adjustments
Revision Date: February 28, 2024
Total General Fund - Restricted
Item 5c. 141
Fund Dept
GL
Code Description
Projected
Actuals
02/22/24
Adopted
Budget FY2023-
2024
Difference
Recommended
adjustments Sub-total Explanation
City of Colfax - FY2023-2024
Mid Year Operating Budget Review - Expense Adjustments
Revision Date: February 28, 2024
560 000 8300 Payments to Other Agencies $ 30,000 $ 25,000 $ 5,000 Based on actual expenditures and current activity 560 000 8400 Bonds and Insurance $ 60,000 $ 45,000 $ 15,000 Based on actual expenditures and current activity 560 000 8525 Testing & Monitoring $ 30,000 $ 40,000 $ (10,000) Based on actual expenditures and current activity 561 000 5010 Salaries & Wages $ 117,000 $ 128,233 $ (11,233) Based on actual expenditures and current activity 561 000 5040 Salary - Call Back $ 4,600 $ - $ 4,600 Based on actual expenditures and current activity 561 000 5201 Materials & Supplies $ 7,000 $ 3,000 $ 4,000 Pending power surge equipment purchase 561 000 5300 Equipment Repairs & Maintenance $ 90,000 $ 11,000 $ 79,000 Pending 2 pump repairs LS #5 561 000 5320 Vehicle Repairs & Maint $ 2,000 $ 1,000 $ 1,000 Based on actual expenditures and current activity 561 000 5350 Tool Rental $ 22,000 $ 1,500 $ 20,500 Pending pump rental for 3 months 561 000 5425 Cell Phone & Pagers $ 1,300 $ 1,100 $ 200 Based on actual expenditures and current activity 561 000 8300 Payments to Other Agencies $ 7,000 $ 5,500 $ 1,500 Based on actual expenditures and current activity 561 000 8400 Bonds and Insurance $ 25,000 $ 18,500 $ 6,500 Based on actual expenditures and current activity $ 196,470
$ 147,756
Note: Only accounts with projected differences are included on this report Total Enterprise Funds
Total City - Operating Expense Adjustments
Item 5c. 142
Date Type Action Comment
Wednesday, February 28, 2024 City Council Meeting Mid Year Review 2023-2024 Comparative budget analysis of Revenue and Expenditures during Current fiscal year. Identification of budget adjustments if recommended. Presentation of budget process calendar of activities for bienennial budget process (Fiscal year 2024-2025 and 2025-2026).
Thursday, February 29, 2024 Staff Staff Kick off Meeting Review budget calendar and budget worksheets.
Thursday, March 28, 2024 Staff Department Reviews Department Heads to review individual fund/department goals, operation expenses, and capital projects with City Manager
Thursday, April 11, 2024 Staff Final Budget Worksheets Deadline Departments to submit final budget worksheets to Finance for review and consolidation Thursday, April 25, 2024 Staff 2024-2025 and 2025-2026 Preliminary Budget (Staff)
Analysis and projection of all revenue sources, departmental staff requirements and expenditures, Capital Improvements projects, Identification of Broad goals - Fund Reserve requirements and targets, identification of challenges and opportunities.
Thursday, May 2, 2024 Council Review Preliminary budget package to City Council for review
Preliminary budget package to be distributed to City Council for review prior to Council/Public Budget Workshop
TBD Council Workshop Council/Public Budget Workshop
To be Scheduled during Work Day
Council provides feedback and general direction to staff based on review of preliminary budget.
Citizens have an opportunity to address Council and staff during this workshop. Workshop agenda to include annual review of financial policies and financial risk analysis.
Wednesday, June 12, 2024 City Council Meeting Adopt 2024-2025 and 2025-2026 Budget GANN Appropriation Limit for fiscal year 2024-2025 to be included for adoption at this meeting.
Wednesday, June 26, 2024 City Council Meeting Contingency Meeting Last date for adoption of budget Monday, July 1, 2024 Staff New Fiscal Year Begins
City of Colfax
Revision Date: January 05, 2024
Bienniel Budget Process - Fiscal Years 2024-2025 and 2025-2026 Calendar of Activities
Item 5c. 143
City of Colfax Construction Contract Award for CDBG Road Rehabilitation Staff Report February 28, 2024 Project
Staff Report to City Council
FOR THE FEBRUARY 28, 2024 REGULAR CITY COUNCIL MEETING
From: Ronald Walker, City Manager
Prepared by: Carl Moore, City Engineer
Subject: Construction Contract Award for CDBG Road Rehabilitation Project Budget Impact Overview:
N/A: Funded: √ Un-funded: Amount:
$1,988,470.00
Fund(s): 210, 258, 358
Summary/Background
In October 2023, the city was notified of the CDBG Grant award letter, dated 10/27/2023, which includes the approved grant amount of $3,482,644.00 for the CDBG Road Rehabilitation Project The project scope includes adjusting utilities to grade, removing utilities, replacing concrete curb & gutter and sidewalk, roadway excavation, placing hot mix asphalt concrete (AC) and aggregate base, placing AC dike, installing storm drainage, placing striping, construction area signs, and traffic control system for the following streets: Culver St. from Church St. to Grass Valley St., Church St. from Culver St. to Rising Sun St., Pleasant St. from Depot St. to the water plant road, School St, S. Forest Hill St. from E. Oak St. to Vista Ave., Pine St., and the intersection of Culver St. and W. Oak St.
On December 5, 2023 the CDBG Road Rehabilitation Project was advertised to bid through the Auburn Journal, the City’s website, City Hall, and CIPList.com website. Bid responses were due January 18, 2024 at 3:00 P.M.
The city received six bids for the construction of the project. Staff reviewed the bids and determined that the bidders were responsible and submitted responsive bids. The city received the following bids, with Hansen Bros. Enterprises determined to be the lowest responsible and responsive bidder in the amount of $1,729,104.00.
Bidder Name Bid Amount
Hansen Bros. Enterprises $1,729,104.00
McGuire & Hester $1,925,801.25
JPB Designs, Inc. $1,946,510.00
All American Construction $2,084,795.25
B&M Builders $2,270,085.00
Lund Construction $2,424,424.00
Engineers Construction Estimate $2,298,000.00
RECOMMENDED ACTION: Adopt Resolution __-2024 awarding and authorizing the City Manager to execute a construction contract with Hansen Bros. Enterprises in the amount of $1,729,104.00 with a 15% contingency for a total amount not to exceed $1,988,470.00 for the CDBG Road Rehabilitation Project.
Item 9a. 144
City of Colfax Construction Contract Award for CDBG Road Rehabilitation Staff Report February 28, 2024 Project
Fiscal Impact
The original grant application budget and current project estimates are reflected in the chart below:
*City match is anticipated to be paid by Fund 258 Streets Funding (includes RSTBG and current/future SB1 funding) and Fund 210 – Road Mitigation Fees.
The CDBG Grant is based on actual expenditures (not grant award amount) and the City will be reimbursed only for allowable costs in accordance with CDBG guidelines on the project. Due to the lower than anticipated construction costs, staff will be reviewing project scope and City match percentage requirements with CDBG personnel.
Recommendation
Staff is recommending City Council award and authorize the City Manager to execute a construction contract with Hansen Bros. Enterprises based on their bid proposal with a 15% contingency for a total not to exceed amount of $1,988,470.00.
Attachments:
1. Resolution __-2024
2. Resolutions 30-2020, 37-2020, 49-2020, 63-2020, 25-2021, 18-2023
3. Agreement with Hansen Bros. Enterprises
Grant Application
Budget Estimate 02/28/24
CDBG Grant Funding $ 3,482,644.00 $ 3,482,644.00
City Match* $ 572,065.00 $ 572,065.00
Total Funding $ 4,054,709.00 $ 4,054,709.00
Grant Application
Budget Estimate 02/28/24
Construction $ 3,119,363.00 $ 1,988,470.00
Engineering $ 374,323.00 $ 470,000.00
Inspection $ 374,323.00 $ 374,323.00
Labor Compliance $ 96,700.00 $ 96,700.00
General Admin City $ 15,000.00 $ 15,000.00
General Admin - Consultant $ 75,000.00 $ 75,000.00
Total Expenses $ 4,054,709.00 $ 3,019,493.00
Project Funding
Project Expenses
Item 9a. 145
_________________________________________________________________________________________ City of Colfax CDBG Construction Contract Award to Hansen Bros.
Resolution __-2024 Enterprises
City of Colfax
City Council
Resolution № __ - 2024
AWARDING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH HANSEN BROS. ENTERPRISES IN THE AMOUNT OF $1,729,104.00 WITH A 15% CONTINGENCY FOR A TOTAL AMOUNT NOT TO EXCEED $1,988,470.00 FOR THE CDBG ROAD
REHABILITATION PROJECT
WHEREAS, in October 2023, the city was notified of the CDBG Grant award letter, dated 10/27/2023, which includes the approved grant amount of $3,482,644.00; and, WHEREAS, on December 5, 2023 the CDBG Road Rehabilitation Project was advertised to bid through the Auburn Journal, the City’s website, City Hall, and CIPList.com website. Bid responses were due January 18, 2024 at 3:00 P.M. The City received six bids for the construction of the project. Staff reviewed the bids and determined that the bidders were responsible and submitted responsive bids; and, WHEREAS, Hansen Bros. Enterprises was determined to be the lowest responsible and responsive bidder in the amount of $1,729,104.00; and,
NOW THEREFORE, BE IT RESOLVED the City Council of the City of Colfax awards and authorizes the City Manager to execute a construction contract with Hansen Bros. Enterprises for $1,729,104.00 with a 15% contingency for a total not to exceed amount of $1,988,470.00.
THE FOREGOING RESOLUTION WAS DULY AND REGULARLY ADOPTED at the Regular Meeting of the City Council of the City of Colfax held on the 28th of February 2024 by the following vote of the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________________
Kim A. Douglass, Mayor
ATTEST:
________________________________________
Amy Lind, Interim City Clerk
Item 9a. 146
Item 9a.
147
Item 9a.
148
Item 9a.
149
Item 9a.
150
Item 9a.
151
AYES: Mendoza, Ackerman, Burruss, Fatula, Lomen
NOES:
ABSTAIN:
ABSENT:
ATTEST:
Amy Lind, Interim City Clerk
City of Colfax
Resolution 25-2021
7 Sean Lomen, Mayor
Community Development Block Grant - Road Rehabilitation Projects Engineering Design with GHD Inc.
Item 9a. 152
Item 9a.
153
AYES: Lomen, Douglass, Burruss
NOES:
ABSTAIN:
ABSENT: Ackerman
ATTEST:
City of Colfax
Resolution 18-2023
Community Development Block Grant - Budget Amendment
withGHD
Item 9a. 154
AGREEMENT FOR CONTRACT SERVICES
THIS AGREEMENT is made and entered into on this 28th day of February, 2024 by and between the City of Colfax, a municipal corporation of the State of California (“City”) and Hansen Bros.
Enterprises (“Contractor”.)
RECITALS
A. The City desires to retain Contractor to provide the Services set forth in detail in Exhibit A hereto (the “Services”) subject to the terms and conditions of this Agreement.
B. Contractor is duly licensed and sufficiently experienced to undertake and perform the Services in a skilled and workmanlike manner and desires to do so in accordance with the terms and conditions of this Agreement.
Now, therefore, in consideration of the mutual covenants, promises and conditions set forth in this Agreement, the City and Contractor agree as follows:
Section 1. Services.
Subject to the terms and conditions set forth in this Agreement, Contractor shall furnish and perform all of the Services described in detail in Exhibit A hereto and incorporated herein by this reference (the “Services”) to the satisfaction of the City. Contractor shall not perform any work exceeding the scope of the Services described in Exhibit A without prior written authorization from the City.
Section 2. Time of Completion.
Contractor’s schedule for performance of the Services is set forth in Exhibit A hereto which is incorporated herein by this reference. Contractor shall commence performance of the Services promptly upon receipt of written notice from the City to proceed. Performance of the Services shall progress and conclude in accordance with the schedule set forth in Exhibit A. During the performance of the Services, Contractor shall provide the City with written progress reports at least once each month and at such additional intervals as City may from time to time request.
Section 3. Compensation.
A. Except as may otherwise be provided in Exhibit A or elsewhere in this Agreement or its exhibits, Contractor shall invoice City once each month for the Services performed during the preceding month. Such invoices shall itemize all charges in such detail as may reasonably be required by City in the usual course of City business but shall include at least (i) the date of performance of each of the Services, (ii) identification of the person who performed the Services, (iii) a detailed description of the Services performed on each date, (iv) the hourly rate at which the Services on each date are charged, (v) an itemization of all costs incurred and (vi) the total charges for the Services for the month invoiced. As long as the Contractor performs the Services to the Item 9a. 155
satisfaction of the City, the City shall pay the Contractor an all inclusive compensation that shall not exceed the amount as detailed in Exhibit A except pursuant to an authorized written change order issued pursuant to Section 15 of this Agreement before the Services requiring additional compensation are performed. City shall pay Contractor no later than thirty (30) days after approval of the monthly invoice by City’s staff.
B. The Contractor's compensation for the Services shall be full compensation for all indirect and direct personnel, materials, supplies, equipment and services incurred by the Contractor and used in carrying out or completing the Services. Payments shall be in accordance with the payment schedule established in Exhibit A or elsewhere in this Agreement or its exhibits.
C. The City shall have the right to receive, upon request, documentation substantiating charges billed to the City pursuant to this Agreement. The City shall have the right to perform an audit of the Contractor's relevant records pertaining to the charges.
D. Any Services performed more than sixty (60) days prior to the date upon which they are invoiced to the City shall not be compensable.
Section 4. Professional Ability; Standard of Quality.
City has relied upon the professional training and ability of Contractor to perform the Services described in Exhibit A as a material inducement to enter into this Agreement. Contractor shall therefore provide properly skilled professional and technical personnel to perform all Services under this Agreement. All Services performed by Contractor under this Agreement shall be in a skillful, workmanlike manner in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Contractor’s field of expertise.
Section 5. Indemnification.
Contractor shall hold harmless and indemnify, including without limitation the cost to defend, the City and its officers, agents and employees from and against any and all claims, demands, damages, costs or liability that arise out of, or pertain to, or relate to the negligence, recklessness or willful misconduct of Contractor and/or its agents in the performance of the Services. This indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or material defects in design by the City or its agents, servants employees or independent contractors other than Contractor who are directly responsible to the City, or arising from the active negligence of the City officers, agents, employees or volunteers
Section 6. Insurance.
Without limiting Contractor’s indemnification obligations provided for above, Contractor shall take out before beginning performance of the Services and maintain at all times during the life of this Agreement the following policies of insurance with insurers possessing a Best rating of not less than Item 9a. 156
A. Contractor shall not allow any subcontractor, professional or otherwise, to commence work on any subcontract until all insurance required of the Contractor has also been obtained by the subcontractor.
A. Workers’ Compensation Coverage. Statutory Workers’ Compensation insurance and Employer’s Liability Insurance to cover its employees. In the alternative, Contractor may rely on a self-insurance program to meet its legal requirements as long as the program of selfinsurance complies fully with the provisions of the California Labor Code. Contractor shall also require all subcontractors, if such are authorized by the City, to similarly provide Workers’ Compensation insurance as required by the Labor Code of the State of California for all of the subcontractor’s employees. All Workers’ Compensation policies shall be endorsed with the provision that the insurance shall not be suspended, voided, or cancelled until thirty (30) days prior written notice has been provided to City by the insurer. The Workers’ Compensation insurance shall also contain a provision whereby the insurance company agrees to waive all rights of subrogation against the City and its elected or appointed officials, officers, agents, and employees for losses paid under the terms of such policy which arise from the Services performed by the insured for the City.
B. General Liability Coverage. General liability insurance, including personal injury and property damage insurance for all activities of the Contractor and its subcontractors, if such are authorized by the City, arising out of or in connection with the Services. The insurance shall be written on a comprehensive general liability form and include a broad form comprehensive general liability endorsement. In the alternative, the City will accept, in satisfaction of these requirements, commercial general liability coverage which is equivalent to the comprehensive general liability form and a broad form comprehensive general liability endorsement. The insurance shall be in an amount of not less than $1 million combined single limit personal injury and property damage for each occurrence. The insurance shall be occurrence based insurance. General liability coverage written on a claims made basis shall not be acceptable absent prior written authorization from the City.
C. Automobile Liability Coverage. Automobile liability insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than $1 million combined single limit for each occurrence.
D. Policy Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following provisions:
1. The City, and its elected or appointed officials, employees and agents shall be named as insureds or additional insureds with regard to damages and defenses of claims arising from activities performed by or on behalf of the Contractor.
2. The insurance afforded by each policy shall apply separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with Item 9a. 157
respect to the insurer’s limits of liability.
3. The insurance shall be primary insurance as respects the City and its elected or appointed officers, officials, employees and agents. Any other insurance maintained by the City or its elected or appointed officers, officials, employees, agents or volunteers shall be in excess of this insurance and shall not contribute with it.
4. The insurance shall not be suspended, voided, cancelled, or reduced in coverage or in limits except after thirty (30) days prior written notice has been provided to the City.
5. Any failure to comply with the reporting requirements of any policy shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, or agents.
E. Professional Liability Coverage. If required by the City, Contractor shall also take out and maintain professional liability, errors and omissions insurance in an amount not less than $1 million. The professional liability insurance policy shall be endorsed with a provision stating that it shall not be suspended, voided, cancelled, or reduced in coverage or in limits except after thirty (30) days written notice has been provided to the City.
F. Insurance Certificates and Endorsements. Prior to commencing the Services under this Agreement, Contractor shall submit to the City documentation evidencing the required insurance signed by the insurance agent and the companies named. This documentation shall be on forms which are acceptable to the City and shall include all required endorsements and verify that coverage is actually in effect. This Agreement shall not be effective until the required insurance forms and endorsements are submitted to and approved by the City.
Failure to provide these forms within the time period specified by City may result in the award of this Agreement to another Contractor should the City, in its sole discretion, decide to do so.
Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.
G. Deductible and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City.
H. Termination of Insurance. If the City receives notification that Contractor’s insurance will be suspended, voided, cancelled or reduced in coverage or in limits, and if the Contractor does not provide for either the reinstatement of that insurance or for the furnishing of alternate insurance containing all of the terms and provisions specified above prior to the termination of that insurance, City may either terminate this Agreement for that breach, or City may secure the required insurance to satisfy the conditions of this Agreement and deduct the cost thereof from compensation which would otherwise be due and payable to the Contractor for Services rendered under the terms of this Agreement.
Section 7. Subcontracts.
Item 9a. 158
Contractor may not subcontract any portion of the Services without the written authorization of City. If City consents to a subcontract, Contractor shall be fully responsible to the City and third parties for all acts or omissions of the subcontractor to which the Services or any portion thereof are subcontracted. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor, nor shall it create any obligation on the part of the City to pay or cause the payment of any monies due to any such subcontractor except as otherwise is required by law.
Section 8. Assignment.
Contractor shall not assign any right or obligation under this Agreement without the City’s prior written consent. Any attempted assignment of any right or obligation under this Agreement without the City’s prior written consent shall be void.
Section 9. Entire Agreement.
This Agreement represents the entire understanding of City and Contractor as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered herein. This Agreement may not be modified or altered except in writing signed by both parties.
Section 10. Jurisdiction.
This Agreement shall be administered and interpreted under the laws of the State of California.
Jurisdiction over any litigation arising from this Agreement shall be in the Superior Court of the State of California with venue in Placer County, California.
Section 11. Suspension of Services.
Upon written request by Contractor, City may suspend, in writing, all or any portion of the Services if unforeseen circumstances beyond the control of the City and Contractor make normal progress of the Services impossible, impractical or infeasible. Upon written City approval to suspend performance of the Services, the time for completion of the Services shall be extended by the number of days performance of the Services is suspended.
Section 12. Termination of Services.
City may at any time, at its sole discretion, terminate all or any portion of the Services and this Agreement upon seven (7) days written notice to Contractor. Upon receipt of notice of termination, Contractor shall stop performance of the Services at the stage directed by City. Contractor shall be entitled to payment within thirty (30) days for Services performed up to the date of receipt of the written notice of termination. Contractor shall not be entitled to payment for any Services performed after the receipt of the notice of termination unless such payment is authorized in advance in writing by the City.
Item 9a. 159
Should Contractor fail to perform any of the obligations required of Contractor within the time and in the manner provided for under the terms of this Agreement, or should Contractor violate any of the terms and conditions of this Agreement, City may terminate this Agreement by providing Contractor with seven (7) days written notice of such termination. The Contractor shall be compensated for all Services performed prior to the date of receipt of the notice of termination.
However, the City may deduct from the compensation which may be owed to Contractor the amount of damage sustained or estimated by City resulting from Contractor’s breach of this Agreement.
Contractor’s obligations pursuant to Sections 5 and 6 of this Agreement shall survive termination, and continue in effect for as long as necessary to fulfill the purposes of Sections 5 and 6.
Section 13. Independent Contractor.
Contractor shall in all respects be an independent contractor and not an agent or employee of City.
Contractor has and shall retain the right to exercise full control and supervision of the means and methods of performing the Services. Contractor shall receive no premium or enhanced pay for Services normally understood as overtime; nor shall Contractor receive holiday pay, sick leave, administrative leave or pay for any other time not actually expended in the performance of the Services. It is intended by the parties that Contractor shall not be eligible for benefits and shall receive no compensation from the City, except as expressly set forth in this Agreement. Contractor shall submit completed W-9 and Report of Independent Contractor forms upon execution of this Agreement and prior to the payment of any compensation hereunder.
Section 14. Ownership of Documents.
Within thirty (30) days after the Contractor substantially completes performance of the Services, or within thirty (30) days after the termination of this Agreement, the Contractor shall deliver to the City all files, records, materials and documents drafted or prepared by Contractor's in the performance of the Services. It is expressly understood and agreed that all such files, records, materials and documents are the property of the City and not the property of the Contractor. All finished and unfinished reports, plans, studies, documents and other writings prepared by and for Contractor, its officers, employees and agents in the course of performing the Services shall become the sole property of the City upon payment to Contractor for the Services, and the City shall have the exclusive right to use such materials in its sole discretion without further compensation to Contractor or to any other party. Contractor shall, at Contractor’s expense, provide such reports, plans, studies, documents and writings to City or any party the City may designate, upon written request. Contractor may keep file copies of all documents prepared for City. Use of any such documents by the City for projects that are not the subject of this Agreement or for purposes beyond the scope of the Services shall be at the City’s sole risk without legal liability or expense to Contractor.
Section 15. Changes and/or Extra Work.
Item 9a. 160
Only the City Council may authorize extra and/or changed Services, modification of the time of completion of the Services, or additional compensation for the tasks to be performed by Contractor.
Contractor expressly recognizes that other City personnel are without authorization to order extra and/or changed Services or to obligate the City to the payment of additional compensation. The failure of Contractor to secure the prior written authorization for such extra and/or changed Services shall constitute a waiver of any and all right to adjustment in the contract price due to such unauthorized Services, and Contractor thereafter shall not be entitled to any compensation whatsoever for the performance of such extra or changed Services. In the event Contractor and City agree that extra and/or changed Services are required, or that additional compensation shall be awarded to Contractor for performance of the Services under this Agreement, a supplemental agreement providing for such compensation shall be prepared and shall be executed by the Contractor and the necessary City officials before the extra and/or changed Services are provided.
Section 16. Compliance with Federal, State and Local Laws.
Contractor shall comply with all applicable federal, state and local laws, statutes, ordinances, rules and regulations affecting the Services, including without limitation laws requiring licensing and prohibiting discrimination in employment because of race, creed, color, sex, age, marital status, physical or mental disability, national origin or other prohibited bases. City shall not be responsible or liable for Contractor’s failure to comply with applicable laws, statutes, ordinances, rules or regulations.
Section 17. Retention of Records.
Contractor and any subcontractors authorized by the terms of this Agreement shall keep and maintain full and complete documentation and accounting records, employees’ time sheets, and correspondence pertaining to the Services, and Contractor shall make such documents available for review and/or audit by City and City’s representatives at all reasonable times during performance of the Services and for at least four (4) years after completion of the Services and/or termination of this Agreement.
Section 18. Alternative Dispute Resolution
A. Before resorting to mediation, arbitration or other legal process, the primary contacts of the parties shall meet and confer and attempt to amicably resolve any dispute arising from or relating to this Agreement subject to the following provisions. Any party desiring to meet and confer shall so advise the other party pursuant to a written notice. Within 15 days after provision of that written notice by the party desiring to meet and confer, the primary contacts for each party shall meet in person and attempt to amicably resolve their dispute.
Each primary contact, or the person acting in their absence with full authority to resolve the dispute, shall attend the meeting and shall be prepared to devote an entire day thereto. If any dispute remains unresolved at the end of the meeting, any party to this Agreement shall have the right to invoke the mediation process provided for in the subparagraph B below.
Item 9a. 161
B. Subject to the provisions of subparagraph A, any dispute that remains unresolved after the meet and confer shall immediately be submitted to non-binding neutral mediation, before a mutually acceptable, neutral retired judge or justice at the Sacramento Office of the Judicial Arbitration and Mediation Service (“JAMS”). If within five days after the meet and confer the parties are unable to agree upon the selection of a neutral mediator, then the first available retired judge or justice at the Sacramento office of JAMS shall serve as the neutral mediator. The parties agree to commit to at least one full day to the mediation process. Additionally, to expedite the resolution of any dispute that is not resolved by mediation, the parties agree to each bring to the neutral mediation a list of at least five neutral arbitrators, including their resumes, whose availability for an arbitration hearing within 30 days after the mediation has been confirmed.
C. If mediation is unsuccessful, before the mediation concludes, the parties shall mediate the selection of a neutral arbitrator to assist in the resolution of their dispute. If the parties are unable to agree on an arbitrator, the parties agree to submit selection of an arbitrator to the mediator, whose decision shall be binding on the parties. In that case, the mediator shall select a neutral arbitrator from the then active list of retired judges or justices at the Sacramento Office of the JAMS. The arbitration shall be conducted pursuant to the provisions of the California Arbitration Act, sections 1280-1294.2 of the California Code of Civil Procedure. In such case, the provisions of Code of Civil Procedure Section 1283.05 and 1283.1 shall apply and are hereby incorporated into this Agreement.
D. This section 18 shall survive the termination or expiration of this Agreement. If there is no Sacramento office of JAMS, then the office of JAMS closest to the City shall be used instead of a Sacramento office.
Section 19. Severability.
The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by an arbitrator or by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by the mutual written consent of the parties.
Section 20. Entire Agreement; Amendment.
This Agreement, including all exhibits hereto, constitutes the complete and exclusive expression of the understanding and agreement between the parties with respect to the subject matter hereof. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement. This Agreement may be amended or extended from time to time only by written agreement of the parties hereto.
Section 21. Time of the Essence.
Time is of the essence in the performance of the Services. The Contractor will perform its Services with due and reasonable diligence consistent with sound professional practices and shall devote Item 9a. 162
such time to the performance of the Services as may be necessary for their timely completion.
Section 22. Written Notification.
Except as otherwise specified in this Agreement, any notice, demand, request, consent, approval or communications that either party desires or is required to give to the other party shall be in writing and either served personally or sent by first class mail, postage prepaid and addressed as follows.
Either party may change its address by notifying the other party in writing of the change of address.
Notice shall be deemed communicated within two business days from the time of mailing if mailed within the State of California as provided in this Section.
If to City: City of Colfax
33 S. Main Street
Colfax, CA 95713
If to Contractor: Hansen Bros. Enterprises
PO Box 1599
Grass Valley, CA 95945-1599
Section 23. Execution.
This Agreement may be executed in original counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one original counterpart is signed by both parties hereto. In proving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.
Section 24. Successors. This Agreement shall be binding on and inure to the benefit of the respective parties hereto except to the extent of any contrary provision in this Agreement.
Section 25. Attorney’s Fees. If any party to this Agreement commences legal proceedings to enforce any of its terms or to recover damages for its breach, the prevailing party shall be entitled to recover its reasonable attorney’s fees, costs and the expenses of expert witnesses, including any such fees costs and expenses incurred on appeal.
IN WITNESS WHEREOF, the parties hereby have executed this Agreement on the day first above written:
CITY CONTRACTOR
Signature Signature
Item 9a. 163
Printed Name Printed Name
Title Title
Date Date
APPROVED AS TO FORM:
City Attorney
Item 9a. 164