DOS PALOS CITY COUNCIL
REGULAR MEETING AGENDA
City-County Building, 1554 Golden Gate Avenue
Dos Palos, California, USA
6:00 pm, Tuesday, July 15, 2025
A. CALL TO ORDER: by Mayor Katy Reed
1. Flag Salute: by Councilmember Armando Bravo
2. Invocation: by Councilmember Thomas Pigg
3. Roll Call: by City Clerk Tracy Mosby
4. Urgency Additions or Deletions: Requires urgency and four affirmative votes S. Public Comment: At this time, anyone present may comment upon any city-related business item, which s not on this agenda. Please state your name and address for the record. Please b oncise and avoid repetition. The mayor may limit you to one presentation not to excee two minutes in length. State law now requires at least twice as much time be allotted to a member of the public who utilizes a non-English translator. Action, if necessary, is limited to staff referral, or with special conditions, placement on a future agenda.
B. COMMENDATIONS, PRESENTATIONS, and PROCLAMATIONS.
1. Presentation of the Audited Financial Statements for July 1, 2023 to June 30, 2024, by Price Paige and Company.
2. Presentation of a Proclamation Recognizing National Health Center Week on August 3rd-August 9th.
C. CONSENT CALENDAR: Action
Items considered routine in nature are placed on the Consent Calendar. There is no discussion of these items before the Council vote, unless a member of the Council or the public requests specific items be discussed and/or removed from the Consent Calendar. Each item on the Consent Calendar approved by the Council shall be deemed to have been considered in full and adopted as recommended.
1. Approval of the Minutes of the June 17, 2025, Regular Meeting.
2. Approval of the Pre-Paids for June 2025.
3. Approval of the Warrants for July 2025.
4. Accept the 2023-2024 Audit as Presented.
5. Reject Claim for Ailene P. Todd.
D. BUSINESS:
1. Consider Introduction of Ordinance 447, Moving Existing Waive First Reading Section 3.12.160 of Chapter 3.12 of Title 3 to a New Chapter Discussion
3.14 of Title 3 of the Dos Palos Municipal Code Pertaining Public Hearing to the Transactions and Use Tax. Motion to Introduce
2. Consider Introduction of Ordinance 448, Adding Waive First Reading Chapter 3.24 to Title 3 of the City of Dos Palos Municipal Discussion Code Pertaining to the Lease of City Owned Real Property. Public Hearing Motion to Introduce
3. Discuss and Consider Approving Resolution 2025-10, Authorizing Report the City Manager to File a Regional Surface Transportation Discussion Program (RSTP) Exchange Program Fund Claim Form for Public Comment FY 2024/2025. Action
4. Discuss and Consider Approving Resolution 2025-11, Declaring Report Intent to Reimburse Certain Expenditures from the Proceeds of Discussion Tax-Exempt Indebtedness. Public Comment
Action
5. Discuss and Consider Entering into an MOU with the County Report of Merced for Stop Gap Fire Services Ending on Discussion December 31, 2026. Public Comment
Action
6. Discuss a Plan for the City Manager Position and Succession Planning. Report Discussion
Public Comment
Direction
7. Discuss an Update for the Possible Creation of an Events Committee. Report Discussion
Public Comment
Direction
E. CORRESPONDENCE, EVENTS, COUNCIL & STAFF REPORTS:
F. ADJORN TO CLOSED SESSION:
1. California Government Code Section 54957
Public Employee Performance Evaluation
Title: City Manager
2. California Government Code Section 54957.6
Conference with Labor Negotiators
Agency Designated Representative: Amanda C. Savage
Unrepresented Employee: City Manager
G. RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED
SESSION.
H. ADJOURNMENT in memory of local departed: Ellneata Gonzales 75 Disclosures and Information:
The 98" City Council consists of Mayor Katy Reed, Mayor pro Tempore Tom Pigg, Councilmember Armando Bravo, Councilmember Marcus Porter, and Councilmember Claudia Bautista. The 46th Council Session is now in session and ends on November 17, 2026. The next available numbers of record are Ordinance #449 and Resolution 2025-12.
Per 54954.2(a)(1), the City's website cityofdospalos.org may be down intermittently or temporarily for maintenance or repairs.
©City of Dos Palos, Inc., website: www.cityofdospalos.org2174 Blossom Street, Dos Palos CA 93620, (209) 392-2174, email: [email protected] 4927-3517-3717, v. 1
AYUNTAMIENTO DE DOS PALOS
ORDEN DEL DÍA DE LA REUNIÓN ORDINARIA
Edificio de la Ciudad-Condado, 1554 Golden Gate Avenue
Dos Palos, California, Estados Unidos
6:00 pm, martes 15 de julio de 2025
Un. LLAMADO AL ORDEN: por la alcaldesa Katy Reed
1. Saludo a la Bandera: por el Concejal Armando Bravo
2. Invocación: por el concejal Thomas Pigg
3. Pase de lista: por la secretaria municipal Tracy Mosby
4. Adiciones o supresiones de urgencia: Requiere urgencia y cuatro votos afirmativos
5. Comentario público: En este momento, cualquier persona presente puede comentar sobre cualquier tema de negocios relacionado con la ciudad, que no esté en esta agenda. Indique su nombre y dirección para que conste. Por favor, sea conciso y evite la repetición. El alcalde puede limitario a una presentación que no exceda los dos minutos de duración. La ley estatal ahora requiere que se asigne al menos el doble de tiempo a un miembro del público que utilice un traductor que no sea inglés. Las medidas, en caso necesario, se limitan a la remisión del personal o, en condiciones especiales, a la inclusión en un programa futuro.
B. ELOGIOS, PRESENTACIONES y PROCLAMAS.
Presentación de los Estados Financieros Auditados al 1 de julio de 2023 al 30 de junio de 2024, por Price Paige and Company.
2. Presentación de un Decreto de Reconocimiento al Centro Nacional de Salud Semana del 3 al 9 de agosto.
C. CALENDARIO DE CONSENTIMIENTO: Acción
Los elementos considerados de naturaleza rutinaria se colocan en el Calendario de consentimiento.
No hay discusión de estos temas antes de la votación del Consejo, a menos que un miembro del Consejo o el público solicite que se discutan y/o eliminen temas específicos del Calendario de Consentimiento. Se considerará que cada punto del Calendario de Consentimiento aprobado por el Consejo ha sido considerado en su totalidad y adoptado según lo recomendado.
1. Aprobación del Acta de la Reunión Ordinaria del 17 de junio de 2025.
2. Aprobación de los prepagos para junio de 2025.
3. Aprobación de los warrants para julio de 2025.
4. Aceptar la auditoría 2023-2024 tal como se presentó.
5. Rechazar la reclamación de Ailene P. Todd.
D. NEGOCIOS:
1. Considerar la introducción de la Ordenanza 447, que traslada la renuncia existente a la primera lectura
Sección 3.12.160 del Capítulo 3.12 del Título 3 a un nuevo capítulo Discusión
3.14 del Título 3 del Código Municipal de Dos Palos Relativo a la Audiencia Pública al Impuesto sobre Transacciones y Usos. Moción para presentar
2. Considerar la introducción de la Ordenanza 448, que agrega la primera lectura de exención Capítulo 3.24 al Título 3 de la Discusión Municipal de la Ciudad de Dos Palos Código relativo al arrendamiento de bienes inmuebles propiedad de la ciudad. Audiencia Pública
Moción para presentar
3. Discutir y considerar la aprobación de la Resolución 2025-10, Informe de Autorización el Administrador de la Ciudad para Presentar una Discusión Regional de Transporte de Superficie Formulario de Reclamación de Fondos del Programa de Intercambio del Programa (RSTP) para Comentario Público
Año fiscal 2024/2025. Acción
4. Discutir y considerar la aprobación de la Resolución 2025-11, Declarando el Informe Intención de reembolsar ciertos gastos con el producto de la discusión Endeudamiento exento de impuestos. Comentario público
Acción
5. Discuta y considere celebrar un memorando de entendimiento con el informe del condado de Merced para los Servicios de Bomberos Stop Gap Terminando en la Discusión 31 de diciembre de 2026. Comentario público
Acción
6. Discuta un plan para el puesto de administrador de la ciudad y la planificación de la sucesión.
Informe
Discusión
Comentario público
Dirección
• 7. Discutir una actualización para la posible creación de un comité de eventos. Informe Discusión
Comentario público
Dirección
E. CORRESPONDENCIA, EVENTOS, CONSEJOS E INFORMES DEL PERSONAL:
F. RECINTO A SESIÓN CERRADA:
1. Sección 54957 del Código de Gobierno de California
Evaluación del Desempeño de los Empleados Públicos
Título: Administrador de la Ciudad
2. Sección 54957.6 del Código de Gobierno de California Conferencia con Negociadores Laborales
Representante designada de la agencia: Amanda C. Savage Empleado no representado: Administrador de la ciudad
G. VOLVER A CONVOCAR A UNA SESIÓN ABIERTA E INFORMAR DESDE UNA SESIÓN CERRADA SESIÓN.
H. APLAZAMIENTO en memoria de los difuntos: Ellneata Gonzales 75 Divulgaciones e información:
El 98° Concejo Municipal está compuesto por la alcaldesa Katy Reed, el alcalde pro tempore Tom Pigg, el concejal Armando Bravo, el concejal Marcus Porter y la concejal Claudia Bautista. La 46ª Sesión del Consejo ya está en sesión y finaliza el 17 de noviembre de 2026. Los siguientes números de registro disponibles son la Ordenanza #449 y la Resolución 2025-12. Según 54954.2 (a) (1), el sitio web de la Ciudad cityofdospalos.org puede estar inactivo de forma intermitente o temporal por mantenimiento o reparaciones.
©Ciudad de Dos Palos, Inc., sitio web: www.cityofdospalos.org2174 Blossom Street,
Dos Palos CA 93620, (209) 392-2174, correo electrónico:[email protected] City of Dos Palos | California
Financial Statements
For the Year Ended June 30, 2024
PRICE PAIGE & COMPANY
Certified Public Accountants
CITY OF DOS PALOS | JUNE 30, 2024
Financial Statements
TABLE OF CONTENTS
PAGE
INTRODUCTORY SECTION
City Council, Administration and Consultants
Independent Auditor's Report ....... 1
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position . 6
Statement of Activities ....7
Fund Financial Statements:
Governmental Funds:
Balance Sheet... . 9
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position... .. 10
Statement of Revenues, Expenditures and Changes in Fund Balances ... 11 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ... 12 Proprietary Funds:
Statement of Net Position.. ....13
Statement of Revenues, Expenses and Changes in Net Position ....14 Statement of Cash Flows. .....15
Fiduciary Funds:
Statement of Fiduciary Net Position ....16
Statement of Changes in Fiduciary Net Position. ..... 17 Notes to the Basic Financial Statements.. .. 19
CITY OF DOS PALOS | JUNE 30, 2024
Financial Statements
TABLE OF CONTENTS (Continued)
PAGE
Required Supplementary Information:
Budgetary Comparison Schedules:
General Fund... .... 47
Measure V Fund ... 48
Notes to the Budgetary Comparison Schedules.. ... 49
Defined Benefit Pension Plan:
Cost-Sharing Multiple-Employer Plan:
Schedule of Proportionate Share of Net Pension Liability ...51 Schedule of Contributions. ...52
Supplementary Information:
Nonmajor Governmental Funds:
Special Revenue Funds:
Combining Balance Sheet ....55
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ... 57
INTRODUCTORY SECTION
CITY OF DOS PALOS | JUNE 30, 2024
City Council, Administration and Consultants
CITY COUNCIL
Mayor Katy Miller
Mayor pro-Tempore Thomas Pigg
Council Member Armando Bravo
Council Member Marcus Porter
Council Member Claudia Bautista
ADMINISTRATION
City Manager/CEO DeWayne Jones
Director of Finance Manuela Sousa
Director of Public Works Gordon Bonds
Chief of Police Clifton Battles
Director of Utilities Craig Hackett
Fire Marshall DeWayne Jones
City Treasurer Lori Lima
CONSULTANTS
City Engineer Garth Pecchenino
City Attorney Lozano Smith
Independent Auditor Price Paige & Company
PRICE PAIGE & COMPANY
Certified Public Accountants
The Place to Be
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and City Council
City of Dos Palos, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Dos Palos, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Substantial Doubt about the City's Ability to Continue as a Going Concern The accompanying financial statements have been prepared assuming that the City will continue as a going concern. As discussed in Note 16 to the financial statements, the City's Water and Refuse Enterprise Funds have net negative pooled cash positions currently supported by interfund borrowings from the Sewer Fund, General Fund, and other restricted governmental funds. The General Fund lacks sufficient liquidity to cover these deficits, and continued reliance on restricted funds may pose compliance risks and limit the City's ability to meet its short-term obligations. Management's evaluation of the events and conditions and management's plans regarding those matters also are described in Note 16.
The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 570 N. Magnolia Avenue, Suite 100 Clovis, CA 93611
tel 559.299.9540
fax 559.299.2344
www.ppc.cpa
1 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the budgetary comparison information, schedule of proportionate share of net pension liability, and the schedule of contributions as noted on the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any 2 assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 10, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance.
Prace Page i company
Clovis, California
July 10, 2025
3 BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
5 CITY OF DOS PALOS | JUNE 30, 2024
Statement of Net Position
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments:
Unrestricted $ 2,161,266 $ - $ 2,161,266
Restricted 503,587 503,587
Restricted cash with fiscal agent 1.492,636 2,808,218 4,300,854 Receivables 799,951 5,588,082 6,388,033
Internal balances 728,513 (728,513)
Inventory of supplies, at cost 225 11,231 11,456
Capital assets:
Non-depreciable 2,106,938 8,904,594 111011,532
Depreciable, net of accumulated depreciation 3,408,585 2,555,957 5,964,542 Total assets 10,698,114 19,643,156 30,341,270
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows from pensions 1,354,270 592,192 1,946,462 Total deferred outflows of resources 1,354,270 592,192 1,946,462
LIABILITIES
Accounts payable 220,178 1,490,816 1,710,994
Retainage payable 32,672 304,853 337,525
Salaries and benefits payable 87,039 37,349 124,388
Deposits payable 350 62,507 62,857
Accrued interest payable 38,146 79,777 117,923
Unearned revenues : 110,538 110,538
Line of credit 3,786,583 3,786,583
Long-term liabilities:
Due within one year:
Compensated absences 89,186 62,798 151,984
Loans and finance purchase 28,740 125,842 154,582
Due in more than one year:
Compensated absences 8,821 25,358 34,179
Loans and finance purchase 2,061,527 4,328,547 6,390,074 Net pension liability 3,028,391 1,517,593 4,545,984
Total liabilities 5,595,050 11,932,561 17,527,611
DEFERRED INFLOWS OF RESOURCES
Deferred inflows from pensions 124,194 98,527 222,721
Total deferred inflows of resources 124,194 98,527 222,721
NET POSITION
Net investment in capital assets 4,768,205 4,366,759 9,134,964 Restricted for:
Capital projects 503,587 503,587
Street maintenance 2,303,245 2,303,245
Economic development 63,899 : 63,899
Housing rehab 48,684 48,684
Public safety 84,655 84,655
Unrestricted (935,548) 3,333,914 2,398,366
Total net position $ 6,333,140 8,204,260. $ 14,537,400
The notes to the basic financial statements are an integral part of this statement. 6 CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024
Statement of Activities
Net (Expenses) Revenues and
Program Revenues Changes in Net Position
Operating Capital
Charges Grants and Grants and Governmental Business-Type Functions/Programs Expenses for Services Contributions Contributions Activities Activities Total eneral sovernment 640,659 $
165,118 $ (475,541) $ (475,541)
Public safety 2,632,045 15,239 501,909 (2,114,897) (2,114,897) Public works 608,515 847,353 238,838 238,838
Parks 219,676 (219,676) (219,676)
Recreation 57,138 225,436 168,298 168,298
Total governmental activities 4,158,033 405,793 1,349,262 (2,402,978) 12,402,978) Business-Type Activities:
Water 1,241,483 809,970 13,455 5,636,466 5,218,408 5,218,408 Sewer 1,128,275 1,008,917 (119,358) (119,358)
Refuse 830,137. 651,467 19,000 (159,670) (159,670)
Total business-type activities 3,199,895 2,470,354 32,455 5,636,466 1,939,380 4,939,380 Total primary government 7,357,9282 2,876,147 ≤ 1,381,717 5.636,466 (2,402,978) 4,939,380 2,536,402 General revenues:
Taxes:
Property taxes 1,061,765 1,061,765
Sales taxes 489,867 489,867
Business license taxes 32,615 32,615
Franchise 103,346 103,346
Other taxes 7,157 7,157
Unrestricted investment earnings (losses) 50,158 104,470 154,628 Rental income 2,500 2,500
Miscellaneous 15,663 43,918 59,581
Total general revenues 1,763,071 148,388 1,911,459
Changes in net position (639,907) 5,087,768 4,447,861
Net position - beginning, as previousiy reported 7,541,911 3,127,979 10,669,890 Error correction (see footnote 15) (568,864) (11,487) (580,351) Net position - beginning, as restated 3,116,492 10.089,539 Net position - ending 6,333,140 5 8,204,260 14,537,400
The notes to the basic financial statements are an integral part of this statement.
FUND FINANCIAL STATEMENTS
CITY OF DOS PALOS | JUNE 30, 2024
Governmental Funds
Balance Sheet
Special
Revenue Fund
Nonmajor Total
General Measure V Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments $ - $ 1,899,635 $ 261,631 $ 2,161,266 Restricted cash with fiscal agent 1,492,636 - 1,492,636 Receivables 483,827 81,984 234,140 799,951
Due from other funds 685,100 102,659 787,759
Inventory of supplies, at cost 225 225
Total assets 2,661,788 $ 1,981,619 § 598,430 $ 5,241,837
LIABILITIES
Accounts payable $ 188,731 $ 24,834$ 6,613 $ 220,178
Retainage payable 32,672 32,672
Salaries and benefits payable 70,224 16,815 87,039
Deposits payable 350 350
Due to other funds 59,246 59,246
Total liabilities - 291,977 24,834 82,674 399,485
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - 79,981 79,981
Total deferred inflows of resources 79,981 79,981
FUND BALANCES (DEFICITS)
Nonspendable 201,733 - 201,733
Restricted:
Public safety 1,956,785 84,655 84,655
Street maintenance 263,457 2,220,242
Economic development 63,899 63,899
Housing rehab 48,684 48,684
Unassigned - 2,168,078 (24,920) 2,143,158
Total fund balances (deficits) 2,369,811 1,956,785 435,775 4,762,371 otal liabilities, deferred inflows c
esources, and fund balances (deficits 2,661,788 $ 1,981,619 $ 598,430 $ 5,241,837 The notes to the basic financial statements are an integral part of this statement. 9 CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds $ 4,762,371
Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental funds. 5,515,523
Certain long-term assets are not available to pay for current period expenditures; therefore, they are unavailable in the governmental funds. 79,981
Interest payable on long-term debt does not require current financial (38,146) Pension related deferred outflows and inflows of resources are not reported in the governmental funds. These amounts consist of:
Deferred outflows of resources related to pensions 1,354,270 Deferred inflows of resources related to pensions (124,194) 1,230,076 Long-term liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of:
Loans and finance purchases payable (2,090,267)
Compensated absences payable (98,007)
Net pension liability (3,028,391) (5,216,665)
Net position of governmental activities $ 6,333,140
The notes to the basic financial statements are an integral part of this statement. 10 CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024 Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances Special
Revenue Fund
Nonmajor Total
General Measure V Governmental Governmental
Fund Fund Funds Funds
REVENUES
Property taxes $ 479,901 $ - $ 479,901
Property taxes - in-lieu-of vehicle license fees 581,864 581,864 Sales and use taxes 489,867 357,735 847,602
Intergovernmental 149,058 727,518 876,576
Licenses, fees and permits 212,716 : 212,716
Other 48,595 50,095
Charges for services 408,293 408,293
Fines, forfeitures and penalties 9,661 9,661
Use of money and property 48,275 1,883 50,158
Total revenues - 2,428,230 357,735 730,901 3,516,866
EXPENDITURES
Current:
General government 766,579 766,579
Public safety 2,206,762 130,589 2,337,351
Public works 230,520 55,304 295,843 581,667
Parks 222,037 222,037
Recreation 151,197 : 151,197
Debt service:
Principal 23,947 : 23,947
Interest 4,260 4,260
-
Total expenditures 3,605,302 55,304 426,432 4,087,038
-
Excess (deficiency) of revenues
over (under) expenditures - (1,177,072) 302,431 304,469 (570,172)
OTHER FINANCING SOURCES (USES)
Proceeds on debt issuance 2,004,002 2,004,002
Total other financing sources (uses) 2,004,002 2,004,002 -
Net change in fund balances - 826,930 302,431 304,469 1,433,830 Fund balance - beginning, as previously reported 1,542,881 1,654,354 621,322 3,818,557 Error correction (see footnote 15) (490,016) (490,016)
-
Total fund balances - beginning, as restated 1,542,881 1,654,354 131,306 3,328,541 Fund balances- ending 2,369,811 $ 1,956,785 435,775 $ 4,762,371 The notes to the basic financial statements are an integral part of this statement.
CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds $ 1,433,830 Capital outlays are reported in governmental funds as expenditures. • However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. In the current period, this is the amount by which capital outlays exceeded depreciation and the loss on disposal of capital assets:
Capital expenditures 801,799
Loss on disposal of assets (8,831)
Depreciation expense (214,324) 578,644
The governmental funds report debt proceeds as another financing source, while repayment of debt principal is reported as an expenditure.
Payment of finance purchases payable 23,151
Issuance of long-term debt (2,004,002) (1,980,851)
Changes to compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 12,161 Interest expense on long-term debt is reported in the government-wide Statement of Activities and changes in net assets, but do not require the use of current financial resources. Therefore, interest expense is not reported as expenditures in governmental funds. (38,146) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 1,260 Changes to net pension liability and pension related deferred inflows and outflows of resources do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (646,805)
Change in net position of governmental activities $ (639,907) The notes to the basic financial statements are an integral part of this statement. 12 CITY OF DOS PALOS | JUNE 30, 2024
Proprietary Funds
Statement of Net Position
Business Type Activities - Enterprise Funds
Water Sewer Refuse Total
ASSETS
Current assets:
Cash and investments:
Unrestricted $ - $
Restricted 306,691 196,896 503,587
Restricted cash with fiscal agent 2,808,218 2,808,218
Receivables 5,392,621 110,621 84,840 5,588,082
Due from other funds 1,230,988 1,230,988
Inventory 11,231 11,231
Total current assets 5,710,543 4,346,723 84,840 10,142,106 Noncurrent assets:
Capital assets:
Nondepreciable 7,859,897 1,044,697 8,904,594
Depreciable, net of accumulated depreciation 1,353,552 1,152,416 19,980 2,555,957 Total noncurrent assets 9,213,549 2,197,113 49,889 11,450,551 Total assets 14,924,092 6,543,836 134,729 21,602,657
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows from pensions 251,508 253,213 87,471 592,192 Total deferred outflows of resources 251,508 253,213 87,471 592,192
LIABILITIES
Current liabilities:
Accounts payable 1,233,986 198,058 58,772 1,490,816
Retainage payable 252,618 52,235 - 304,853
Salaries and benefits payable 15,600 16,261 5,488 37,349 Deposits payable 25,130 18,943 18,434 62,507
Accrued interest payable 7,209 72,568 79,777
Unearned revenues 49,538 61,000 110,538
Line of credit 3,786,583 3,786,583
Compensated absences 27,266 27,862 7,670 62,798
Loans and finance purchase 1,272 124,570 125,842
Due to other funds 1,435,942 523,559 1,959,501
-
Total current liabilities 6,835,144 510,497 674,923 8,020,564 Noncurrent liabilities:
Compensated absences 8,448 11,034 5,876 25,358
Loans and finance purchase 4,328,547 4,328,547
Net pension liability 644,533 648,900 224,160 1,517,593 Total noncurrent liabilities 652,981 4,988,481 230,036 5,871,498 Total liabilities 7,488,125 5,498,978 904,959 13,892,062
DEFERRED INFLOWS OF RESOURCES
Deferred inflows from pensions 41,600 43,367 13,560 98,527 Total deferred inflows of resources 41,600 43,367 13,560 98,527
NET POSITION (DEFICIT)
Net investment in capital assets 3,993,499 323,371 49,889 4,366,759 Restricted for:
Capital projects 306,691 196,896 503,587
Unrestricted (deficit) 3,345,685 734,437 (746,208) 3,333,914 Total net position (deficit) 7,645,875 $ 1,254,704 $ (696,319) $ 8,204,260 The notes to the basic financial statements are an integral part of this statement. 13 CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024 Proprietary Funds
Statement of Revenues, Expenses and Changes in Net Position Business Type Activities - Enterprise Funds
Water Sewer Refuse Total
Operating revenues:
Charges for services $ 321,660 $ 876,144 $ 651,467$ 1,849,271 IPA operations and maintenance fees 488,310 132,773 - 621,083 Other - 37,732 6,091 95 43,918
Total operating revenues - 847,702 1,015,008 651,562 2,514,272 Operating expenses:
Personnel services & benefits 446,083 394,530 120,943 961,556 Repairs & maintenance 133,947 143,614 19,109 296,670
Utilities 123,340 119,556 242,896
Insurance 119,369 76,306 2,035 197,710
Joint powers operating expenses 157,196 8,382 8,382
Contractual services 93,384 672,154 922,731
Depreciation 36,141 95,516 7,652 139,309
Other - 128,013 51,536 8,247 187,796
Total operating expenses - 1,144,089 982,824 830,137 2,957,050 Operating income (loss) - (296,387) 32,184 (178,575) (442,778) Nonoperating revenues (expenses):
Use of money and property 15,999 86,161 2,310 104,470
Interest (97,394) (145,451) (242,845)
Capital grants 5,649,921 19,000 5,668,921
Total nonoperating revenues (expenses) - 5,568,526 (59,290) 21,310 5,530,546 Change in net position 5,272,139 (27,106) (157,265) 5,087,768 Net position - beginning, as previously presented 2,373,736 1,281,810 (527,567) 3,127,979 Error correction (see footnote 14) (11,487) (11,487)
-
Net position - beginning, as restated - 2,373,736 1,281,810 (539,054) 3,116,492 Total net position (deficit) - ending 7,645,875 1,254,704 ≤ (696,319) $ 8,204,260 The notes to the basic financial statements are an integral part of this statement.
CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024
Proprietary Funds
Statement of Cash Flows
Business-Type Activities - Enterprise Funds
Water Sewer Refuse Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 830,215 $ 1,037,631 $ 648,270$ 2,516,116 Cash payments to employees (588,035) (557,468) (154,399) (1,299,902) Cash payments to suppliers 471,913 (329,765) (698,441) (556,293) Net cash provided by (used for) operating activities 714,093 150,398 (204,570) 659,921
CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES Cash received from grants 61,000 61,000
Loans) repayments to/from other fund: (47,946) (1,230,988) 141,445 (1,137,489) Net cash provided by (used for) noncapital and related
financing activities (47,946) (1,230,988) 202,445 (1,076,489)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Cash received from capital related grants 810,233 19,000 829,233 Acquisition and construction of capltal assets (5,355,093) (1,107,771) (19,000) (6,481,864) Proceeds from long-term debt 3,786,583 3,637,898 7,424,481 Principal paid on long-term debt (3,311) (121,102) : (124,413) Interest paid on long-term debt (90,185) (78,766) (168,951) Net cash provided by (used for) capital and related
financing activities (851,773) 2,330,259 1,478,486
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 16,364 84,499 2,125 102,988
Net cash provided by (used for) investing activities 16,364 84,499 2,125 102,988 Net increase (decrease) in cash and investments (169,262) 1,334,168 - 1,164,906 Cash and investments, July 1, 2023 475,953 1,670,946 : 2,146,899 Cash and investments, June 30, 2024 306,691 3,005,114 ≤ 3,311,805 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities:
Operating income (loss) $ (296,387) $ 32,184 $. (178,575) $ (442,778) Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreclation 36,141 95,516 7,652 139,309
Change in assets and labilities:
(Increase) decrease in consumer receivables (17,587) 22,373 (3,542) 1,244 [Increase) decrease In pension related deferred outflows of resources 119,403 134,330 32,599 286,332
Increase (decrease) in accounts payable 1,133,778 163,013 3,101 1,299,892 Increase (decrease) In salarles and benefits payable 15,600 16,261 5,488 37,349 Increase (decrease) in deposits payable 100 250 250 600 Increase (decrease) in compensated absences (3,402) (2,575) 1,222. (4,755) Increase (decrease) in net pension liability (236,531) (272,287) (60,794) (569,612) Increase (decrease) in pension related deferred inflows of resources (37,022) (38,667) (11,971) (87,660)
Net cash provided by (used for) operating activities $ 714,093 $ 150,398 $ (204,570) $ 659,921 The notes to the basic financial statements are an integral part of this statement. 15 CITY OF DOS PALOS | JUNE 30, 2024
Fiduciary Funds
Statement of Net Position
Custodial
Funds
ASSETS
Cash and investments (in City investment pool) $ 613,381 Receivables (net) 204,575
Due from other governments 17
Total assets 817,973
LIABILITIES
Accounts payable . 70,763
Due to public finance authority 169,668
Total liabilities 240,431
NET POSITION
Restricted for:
Individuals, organizations, and other governments 577,542 Total fiduciary net position $ 577,542
The notes to the basic nail statements are a neal part of this statement.
CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024
Fiduciary Funds
Statement of Changes in Net Position
Custodial
Funds
ADDITIONS
Utility collections $ 1,532,127
Total additions 1,532,127
DEDUCTIONS
Disbursements to other entities 855,124
Professional services 146,042
Utilities 322
Water purchases 172,764
Supplies 28,695
Loan repayments 225,338
Total deductions 1,428,285
Net increase (decrease) in fiduciary net position 103,842 Net position - beginning 473,700
Net position - ending 577,542
The notes to the basic financial statements are an integral part of this statement.
NOTES TO THE BASIC FINANCIAL STATEMENTS
18 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Dos Palos (the City) have been prepared in conformity with United States generally accepted accounting principles (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City's most significant accounting policies are described below.
A. Financial Reporting Entity
The financing reporting entity, as defined by the Governmental Accounting Standards Board (GASB), consists of the primary government, the City, organizations for which the primary government is financially accountable and any organization for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
The City provides contract billing services for several surrounding Special Districts and Joint Powers Agencies, whose funds are included in the City's pooled cash. The City does not have the ability to exercise influence over them, therefore these entities are reported in the accompanying financial statements as Custodial Funds in the Fiduciary Fund Financial Statements.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity.
The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column.
Fiduciary activities of the City are not included in these statements. These basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they occur while expenses are recognized in the . period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
Certain eliminations have been made aş prescribed by GASB Statement No. 34 in regard to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated. The following interfund activities have been eliminated:
• Due to/from other funds
• Advances to/from other funds
• Transfers in/out
19 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. Accompanying reconciliations are presented to explain the differences in fund balances and changes therein as presented in these statements to the net position and changes therein presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current and long-term financial assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues are recorded when received in cash, including revenues susceptible to accrual (generally received within 60 days after year-end. The primary revenue sources which have been treated as susceptible to accrual by the City are property tax, sales tax, franchise taxes, special assessments, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
The City reports the following major governmental funds:
General Fund - This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
Measure V Fund - This fund accounts for the City's portion of the ½ cent transportation sales tax and related expenditures for transportation maintenance and improvement projects.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major enterprise fund.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net.
Position. The Statement of Revenues, Expenses and Changes in Fund Net Position present increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect) unless those pronouncements conflict with or contradict GASB pronouncements.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operation of the fund. All other expenses are reported as nonoperating expenses. 20 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
The City reports the following major proprietary fund types:
Water Fund - Accounts for the provision of water to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, distribution, maintenance, and debt service.
Sewer Fund - Accounts for the provision of wastewater collection and treatment services to the residents of the City.
All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, and debt service.
Refuse Fund - Accounts for the revenues and expenses for operation and maintenance of the solid waste system.
Fiduciary Fund Financial Statements
The City's fiduciary funds are used to account for resources held for the benefit of parties outside the government. The fiduciary fund's activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position.
The City reports the following fiduciary fund type:
Custodial Funds - Funds held by the City in a custodial capacity for individuals and entities outside of the government.
This includes activity related to the various water districts within the City of Dos Palos' water distribution system in addition to the Joint Powers Authority and Public Finance Authority activity.
Certain eliminations have been made as prescribed by GASB statement No. 34 for interfund activities, payable and receivables. All internal balances in the Statement of Net Positions have been eliminated except those. representing balances between governmental activities and business-type activities, which are presented as internal balances and eliminated in the total governmental column.
C. Cash, Cash Equivalents and Investments
Cash Management
The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City's intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. Interest earnings are apportioned among funds based on average daily accounting period, cash and investment balances.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid investments with original maturities of three months or less at the time of acquisition.
Investments Valuation
The City has adopted GASB statement No. 72, Fair Value Measurement and Application; investments are measured at fair value on a recurring basis. Recurring fair value measurements are those that GASB Statement require or permit in the statement of net position at the end of each reporting period. 21 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Cash, Cash Eguivalents and Investments (Continued)
State Investment Pool
The City participates in the Local Agency Investment Fund (LAIF), an investment pool managed by the State of California.
LAIF has invested a portion of the pool funds in Structured Notes and Asset-Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as a result of changes in interest rates.
Deposits and Investments Risk Disclosures
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks are specified in the following areas:
Interest Rate Risk
• Credit Risk:
Overall
Custodial Credit Risk
Concentrations of Credit Risk
• Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
D. Interfund Balances/Internal Balances
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans).
Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as "internal balances".
E. Capital Assets
Capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business-type activities in the government- wide financial statements. All purchased capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated fair value on the date received.
City policy has set the capitalization threshold for reporting capital assets at the following:
General Capital Assets... ..Ş 5,000
.....*............ ..
Infrastructure Capital Assets $ 50,000
22 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Capital Assets (Continued)
For all capital assets, depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings and Improvements ...... 30-40 years
Furniture and Fixtures... ....... 8-15 years
Machinery and Equipment... .. 5-40 years
Water and Sewer Transmission, Collection and Distribution Lines .. ..... 40-50 years Infrastructure.... ..... 40-70 years
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, water and sewer systems, park land, and other similar items. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.
The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date was calculated on a straight-line method using industry accepted life expectancies for each infrastructure subsystem.
The book value was then computed by deducting the accumulated depreciation from the original cost.
F. Subscription-Based Information Technology Arrangements (SBITAs) Lessee: The City enters into noncancellable subscription-based information technology arrangements (SBITAs) for the acquisition of various information technology services. SBITAs are accounted for in accordance with GASB Statement No.
Upon commencement of a subscription, the City recognizes subscription liability and an intangible right-to-use subscription asset (subscription asset) in the government-wide financial statements. Subscription liabilities are recognized when their initial individual values are $5,000 or more. The subscription liability is initially measured at the present value of payments expected to be made during the subscription term and is subsequently reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, and any directly attributable initial costs. The subscription asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to SBITAs include determining the discount rate used to discount expected subscription payments to present value, the subscription term, and the composition of subscription payments.
The City generally uses the interest rate charged by the subscription provider as the discount rate. When the interest rate charged by the provider is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for SBITAs, which is the prime rate at the inception of the subscription.
The subscription term includes the noncancellable period of the subscription and subscription payments that the City is reasonably certain to make.
The measurement of subscription liability excludes any variable payments such as payments based on the number of user seats unless they depend on an index or a rate or are fixed in substance. 23 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Subscription-Based Information Technology Arrangements (SBITAs) (Continued) The City monitors changes in circumstances that would require a remeasurement of its SBITAs and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. Subscription assets are reported with other intangible assets, and subscription liabilities are reported as liabilities on the Statement of Net Position.
This disclosure provides information on the accounting policies related to Subscription-Based Information Technology Arrangements (SBITAs) in accordance with GASB Statement No. 96 and should be read in conjunction with the accompanying financial statements.
G. Interest Payable
In the government-wide and proprietary financial statements, interest payable on long-term debt is recognized as the liability is incurred.
H. Unearned Revenue
Unearned revenue is that for which asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The City typically records intergovernmental revenues (primary grants and subventions) received but not earned (qualifying expenditures not yet incurred).
1. Unavailable Revenue
In the governmental fund financial statements, unavailable revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unavailable revenue for transactions for which revenues have been earned, but for which funds are not available to meet current financial obligations.
1. Leases
Lessee: The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.
The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
24 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Leases (Continued)
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position.
Lessor: The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. • The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
K. Compensated Absences
City employees accumulate vacation pay in varying amounts as services are provided. All outstanding vacation pay is payable upon termination of employment. In the governmental funds, the amount of vacation pay recognized during the year is the amount liquidated with expendable available financial resources. In the proprietary funds, the amount of vacation pay recognized is the amount earned during the year.
City employees accrue sick leave in varying amounts as services are provided. Sick leave benefits are vested 50% with employees. Accumulated vacation and compensated time are accrued, as appropriate, for all funds.
L. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Notes payable are recorded at the amount of proceeds received. Issuance costs, if any, are expensed in the period incurred.
In the fund financial statements, governmental fund types recognize proceeds from notes payable and similar obligations in the current period. The face amount of debt issued is reported as other financing sources. Issuance costs, whether withheld from the actual debt proceeds received, are reported as debt service expenditures. 25 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Net Position and Fund Balance
Government-Wide Financial Statements
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets - This amount consists of capital assets net of accumulated depreciation and reduced by any outstanding debt that attributed to the acquisition, construction, or improvement of the assets.
Restricted Net Position - This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments.
• Unrestricted Net Position - This amount is all net assets that do not meet the definition of "net investment in capital assets" or "restricted net position".
Fund Financial Statements
In the fund financial statements, the following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
Nonspendable - This includes amounts that cannot be spent because they are either not spendable in form or legally or contractually required to remain intact. For governmental funds, the current year balance represents long-term receivables (home loans) made by the City.
Restricted - This includes amounts with constraints placed on their use by those external to the City, including creditors, grantors, contributors or laws and regulations of other governments. It also includes constraints imposed by law through constitutional provisions or enabling legislation.
Committed - This includes amounts that can only be used for specific purposes determined by formal action of the City Council and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.
Assigned - This includes amounts that are constrained by the City's intent to be used for specific purposes. This intent can be established at either the highest level of decision making, the City Council, or by a body or an official designated for the purpose. This classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of the assigned fund balance amount.
Unassigned - This is the residual classification that includes amounts not contained in the other classifications.
In circumstances when expenditures are made for a purpose which amounts are available in multiple fund balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and unassigned.
The City established a "rainy-day" fund that does not qualify as a stabilization arrangement in accordance with GASB54.
The amounts are reserved for future unknown costs with the purpose of stabilizing large fluctuations in costs for budgetary purposes. At June 30, 2024, the amount of this reserve fund was $126,050. 26 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N. Property Tax Calendar
Property tax revenue is recognized when measurable and available. The assessment, levy and collection of property taxes are the responsibility of the County of Merced. The City records property taxes as revenue when received from the County, except at year-end, when property taxes received within 60 days after the end of the fiscal year are "available" and, therefore, recognized as revenue.
Secured and unsecured property taxes are levied based on the assessed value as of January 1, lien date, of the preceding fiscal year. Secured property tax is levied on July 1 and due in two installments, on November 1 and February 1.
Collection dates are December 10 and April 10, which are also the delinquent dates. Unsecured property tax is levied on July 1 and due on July 31, and has a collection date of August 31, which is also the delinquent date.
O. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.
P. Post-Employment Health Care Benefits
The City provides no post-retirement health care benefits to employees who retire.
NOTE 2 - CASH AND INVESTMENTS
The City maintains a cash investment pool that is available for all funds. Each fund type balance in the pool is reflected on the combined balance sheet as cash and investments. The City follows the practice of pooling cash and investments of all funds. Interest income earned on pooled cash and investments is allocated to the various funds based on the average daily cash and investment balances.
A. Summary of Deposits and Investments
Cash and investments at June 30, 2024 are classified in the accompanying financial statements as follows:
Government-Wide
Statement of Net Position
Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments $ 2,161,266 $ - $ 613,381 $ 2,774,647 Restricted cash and investments 1,492,636 3,311,805 4,804,441 Total cash and investments $ 3,653,902 $ 3,311,805 $ 613,381 $ 7,579,088 27 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 2 - CASH AND INVESTMENTS (Continued)
A. Summary of Deposits and Investments (Continued)
Cash and investments consist of the following as of June 30, 2024:
Cash on hand $ 400
Deposits with financial institutions 1,096,435
Investments 6,482,253
Total cash and investments 7,579,088
B. Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.
Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.
Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is provided by the following table that shows the maturity date of each investment:
Remaining Maturity (in Months)
More than 60
Investment Type Total _ 12 Months or Less 13 to 24 Months 25 to 60 Months Months. ocal Agency Investment Fun $ 1,862,473 $ 1,862,473 $
SJVRMA POO 318,925 318,925
Money Market 4,300,855 4,300,855
Total 6,482,253 $ 6,482,253 $
C. Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
Rating as of Year-End
Investment Type Total AAAm Not Rated
Local Agency Investment Fund 1,862,473 $ - $ 1,862,473
CSIVRMA Pool 318,925 318,925
Money Market 4,300,855 4,300,855
Total $ 6,482,253 $ 4,300,855 2 2,181,398
D. Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the concentration of the government's investment in a single issuer. The investment policy of the City contains no limitations on the amount that can be invested in any one issuer one suer other than u.s. Treasury secures, mental fund, and ete a restment to did that repriestment in any. of the total City's total investments.
28 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 2 - CASH AND INVESTMENTS (Continued)
E. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institytions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
The City may and has waived collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.
The carrying amounts of the City's cash deposits totaled $1,096,432 at June 30, 2024. Bank balances were $1,158,033, the total amount of which was insured and/or collateralized with securities held by the pledging financial institutions in the City's name.
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).
As of June 30, 2024, there were no investments that were required to be identified by GASB Statement No. 40 in relation to custodial credit risk.
F. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amount based upon the City's pro-rata share of the amortized cost provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based in the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Although the City did not participate in any securities lending transactions or enter into any reverse repurchase agreements during the year, the City does have an investment in LAIF in the amount of $1,862,473. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members designated by State statute. The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis, • which is different from the fair value of the City's position in the pool.
G. Central San Joaquin Valley Risk Management Authority The City maintains an investment of $318,925 in the Central San Joaquin Valley Risk Management Authority (CSJVRMA) Pool as of June 30, 2024. The total amount invested by all participants in the pool is $161,579,020. The value of the pool shares which may be withdrawn is determined on an amortized cost basis, which is different than the fair value of the City's portion in the pool. The fair value of the City's share of the pool is determined monthly and is $318,925 as of June 30, 2024. The pool is not registered with the Securities Exchange Commission; however, it is managed by a registered investment advisor. Participation in the pool is voluntary. The pool's average maturity complies with the City's investment police.
29 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 2 - CASH AND INVESTMENTS (Continued)
H. Investment Valuation
The City categorizes the fair value of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset's fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Fair value measurements of the City's investments are as follows at June 30, 2024:
Investments in the Local Agency Investment Fund (LAIF) are valued at $1,862,473 based on the City's pro-rata share of the amortized cost provided by LAIF for the entire LAIF portfolio. LAIF invests in numerous types of investments ranging all levels of the fair value hierarchy. Accordingly, LAIF is not an investment type that can be categorized in any particular level in the fair value hierarchy.
Investments in the CSJVRMA Investment Pool (CSJVRMA) are valued at $318,925 based on the City's pro-rata share of the fair market value provided by CSJVRMA for the entire CSJVRMA portfolio. CSJVRMA invests in numerous types of investments ranging all levels of the fair value hierarchy. Accordingly, CSJVRMA is not an investment type that can be categorized in any particular level in the fair value hierarchy.
NOTE 3 - RECEIVABLES
Receivables as of June 30, 2024, consisted of the following for the governmental funds:
Nonmajor Total
General Measure V Governmental Governmental
Fund Fund Funds Funds
Receivables:
Intergovernmental $ 270,753 $ 81,984$ 233,312 $ 586,049 Loans 201,508 811 202,319
Franchise fees 7,266 7,266
Interest 4,300 17 4,317
Total receivables 483,827 S 81,984 ≤ 234,140 $ 799,951
Receivables as of June 30, 2024, consisted of the following for the enterprise funds:
Total Enterprise
Water Fund • Sewer Fund Refuse Fund Funds
Receivables:
Utilities $ 23,711 $ 98,505. $ 84,200 $ 206,416
Intergovernmental 5,364,963 5,364,963
Interest 3,947 12,116 640 16,703
Total receivables 5,392,621 $ 110,621 § 84,840 5,588,082 Receivables as of June 30, 2024, consisted of the following for the fiduciary funds:
Custodial
Funds
Receivables:
Utility collections $ 204,575
Total receivables $ 204,575
30 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 4 - INTERFUND TRANSACTIONS
Interfund Loans Receivable and Payable
The following schedule summarizes the City's interfund activity for the year ended June 30, 2024:
Due
•
From To
Major Funds:
General Fund $ 685,100 $
Water Fund 1,435,942
Sewer Fund 1,230,988
Refuse Fund 523,559
Nonmajor Funds:
CMAQ Fund 9,716
RMRA Fund 102,659
DOJ Tobacco Grant Fund 49,530
Total 2,018,747 ≤ 2,018,747
At year-end, certain funds reported negative cash balances, which is not uncommon during timing differences in revenues and expenditures. Typically, the General Fund provides the temporary financing to cover these shortfalls at year-end which are noted as due to/from. However, as of June 30, 2024, the General Fund did not have sufficient available cash to fully support these deficits. As a result, temporary advances were made from other funds, including those with restricted resources, to ensure cash flow adequacy across all operations. These interfund balances are expected to be resolved through subsequent revenue collections and appropriate reimbursements in accordance with applicable legal and regulatory constraints.
NOTE 5 - CAPITAL ASSETS
Capital asset activity of the governmental activities for the year ended June 30, 2024 is as follows:
Balance ior Per Balance
July 1, 2023 djustme Acquisitions Dispositions June 30, 2024 overnmental Activiti
depreciable asset
Land $ 55,000$ 55,000$ - $ - $ 55,000
Construction in progress 1,329,006 1,329,006 794,052 (71,130) 2,051,938 Total nondepreciable assets 1,384,006 1,384,006 794,052 (71,130) 2,106,938 Depreciable assets:
Machinery and equipment 358,647 358,647 358,647
Vehicles 669,881 669,881 : 18,831) 661,050
Buildings and structures ....
128,464 128,464 128,464
Improvements 928,748 928,748 7,737 936,485
Infrastructure 4,103,543 4,103,543 71,130 4,174,673
Total depreciable assets 6,189,283 6,189,283 78,867 18,831 6,259,319 Less accumulated depreclation for:
Machinery and equipment (265,638) (2,095) (267,733) (18,821) (286,554) Vehicles (381,266) (25,148) (406,414) (63,195) (469,609) Buildings and structures (69,542) (2,558) (72,100) (6,350) (78,450) Improvements (539,401) (48,093) (587,494) (43,797) (631,291) Infrastructure (1,301,715) (954) (1,302,659) (82,161) (1,384,830) Total accumulated deprectation (2,557,562) (78,848) (2,636,410) (214,324) (2,850,734) Depreciable assets, net 3,631,721 (78,848) 3,552,873 (135,457) (8,831) 3,408,585 Governmental activities capital assets, net 5,015,7275 (78,848) $ 4.936,879 $ 658,605 (79,961) $ 5,515,523 31 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 5 - CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs of the governmental activities as follows:
Governmental Activities:
General Government $ 4,063
Public Safety 51,387
Parks 34,235
Public Works 124,639
Total 214,324
Capital asset activity of the business-type activities for the year ended June 30, 2024 is as follows:
Balanc rior Perio estated Balanc Balance
uly 1, 202 adjustmen uly 1, 202 Acquisitions Dispositions June 30, 2024 usiness-Type Activitte
Jondepreciable assets
Construction in progress 2,252,186 $ 2,252,186 ≤ 6,652,408 ≤ 3,904,594 Total nondepreciable assets 2,252,186 2,252,186 6,652,408 8,904,594 Depreciable assets:
Vehicles 326,137 326,137 326,137
Buildings and improvements 6,478,543 6,478,543 6,478,543 Machinery and equipment 546,665 546,665 130,998 677,663 Total depraclable assets 7,351,345 7,351,345 130,998 7,482,343 Lass accumulated depreciation for:
Vehicles (183,606) (183,606) (30,212) (213,818)
Bulldings and Improvements (4,195,066) (4,195,066) (77,809) (4,272,875) Machinery and equipment (395,918) (11,487) (408,405) (31,288) (439,693) Total accumulated depreciation (4,775,590) (11,487) (4,787,077) (139,309) (4.926,386) Depreciable assets, net 2,575,755 (11,487) 2,564,268 (8,311) 2,555,957 Business-type activities capital essets, net 4,827,941 (11,487) $ 4,816,454 $ 6,644,097 2 11,460,551 Depreciation expense for business-type activities for the fiscal year ended June 30, 2024 was charged as follows:
Business-Type Activities:
Water $ 36,141
Sewer 95,516
Refuse 7,652
Total $ 139,309
NOTE 6-Line of Credit
On June 7, 2024, the City of Dos Palos entered into a revolving line of credit agreement with the Rural Community Assistance Corporation to provide interim cash flow financing related to the California State Water Resources Control Board funding for the City's water plant expansion project. The line of credit carries an annual interest rate of 5.5% and i intended to facilitate timely payments to the project's contractor and engineer while awaiting reimbursement from the State. As of June 30, 2024, the Water Fund (a Business-Type Activity) had an outstanding balance of $3,786,583 under the line of credit. The full balance is expected to be repaid within one year. 32 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 7 - LONG-TERM DEBT
A. Finance Purchases
The City has entered into various lease agreements as a lessee for financing the acquisition of various City vehicles and equipment. These lease agreements do not meet the requirements for reporting as a lease under GASB87 and have been classified as finance purchases. The leases are secured by the related assets for the outstanding balance of the direct borrowing with varying rates of interest from 4.00% - 6.75%. The direct borrowings contain provisions whereby if the City is unable to make payment or does not comply with the lease purchase agreements, the issuer may declare all amounts Balance Satisfied or Balance Due Within
July 1,2023 _Incurred or Issued Matured June 30, 2024 One Year.
Governmental Activities:
Direct borrowing:
Finance purchases $ 109,416 $ 2,004,002 (23,151) $ 86,265 $ 28,740 2024 Equipment Lease Purchase Agreement Loan 2,004,002
Total governmental activities $ 2,004,002 $ 2,090,267 S Business-Type Activities:
Direct borrowing:
Finance purchases $ 9,166 $ - $ (6,622) $ 2,544 $ 2,544 Notes payable 935,049 (121,102) 813,947 125,842
2024 Equipment Lease Purchase Agreement Loan 3,637,898 3,637,898 Total business-type activities 944,215 $ 3,637,898 ≤ (127,724) $ 4,454,389 $ 128,386 The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2024 were as follows:
Finance Purchases - Governmental Activities
Fiscal Years
Ending June 30 Principal Interest Total
2025 $ 28,740 $ 4,045 $ 32,785
2026 16,553 2,234 18,787
2027 16,541 1,505 18,046
2028 17,301 745 18,046
2029 7,130 78 7,208
Total $ 86,265 $ 8,607 $ 94,872
33 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 7 - LONG-TERM DEBT (Continued)
B. Notes Payable
2019 Refunding of USDA Wastewater Loan, Series 1991-A
On April 15, 2019, the City refinanced the Dos Palos Wastewater JPA Series-A debt in the City's name as a City obligation, for a total amount of $1,385,050. The note has a stated interest rate of 3.02% and is payable in semi-annual payments ir April and October. The City received nothing in exchange other than a reduction in the JPA's budgeted expense billings to the City. The note is secured by a pledge of net revenues from the City's Sewer Fund. There is a provision in the agreement whereby if the City is unable to make payment or does not comply with the covenants of the agreement, the issuer may declare all amounts due and payable.
The annual debt service requirements to maturity of the 2019 Refunding of USDA Wastewater Loan are as follows:
Note Payable - 2019 Wastewater - Business-Type Activities Fiscal Years
Ending June 30 Principal Interest Total
2025 $ 123,298 $ 22,719 $ 146,017
2026 129,507 18,902 148,409
2027 135,386 14,902 150,288
2028 136,718 10,793 147,511
2029 142,038 6,584 148,622
2030 147,000 2,220 149,220
Total $ 813,947 $ 76,120 $ 890,067
C. 2024 Equipment Lease Purchase Agreement Loan
On February 27, 2024, the City entered into a lease-purchase financing agreement through a direct placement with Zions Bank Corporation to fund various solar improvements. The total amount of the financing is $5,641,900 with an interest rate of 5.5% and a 20-year amortization period. The debt is secured by the related property-solar improvements to be constructed with the proceeds of the financing. The agreement includes provisions that certain events of default, including nonpayment, may result in the outstanding principal becoming immediately due and payable. The total debt is allocated between Governmental Activities and the Sewer Fund (a Business-Type Activity) based on actual project costs.
As of June 30, 2024, the balance allocated to Governmental Activities was $2,004,002, and the balance allocated to the Sewer Fund (a Business-Type Activity) was $3,637,898. The allocation between the two activities reflects the proportional investment in solar improvements benefiting each function. 2024 Equipment Lease Purchase Agreement Loan
Fiscal Years
Ending June 30 Principal Interest Total
2025 $ - $ - $
2026 75,000 598,198 673198
2027 284,344 302,323 586,667
2028 314,162 286,279 600,441
2029 346,274 268,565 614,839
2030-2044 4,622,120 2,229,137 6,851,257
Total $ 5,641,900 $ 3,684,502 $ 9,326,402
34 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 8 - COMPENSATED ABSENCES
The City's policy relating to compensated absences is described in Note 1. As shown in the table below, the long-term portion of this debt is expected to be paid in future years from future resources. There is no fixed payment schedule for compensated absences. In prior years, compensated absences have been liquidated primarily by the General Fund and the proprietary funds.
The balance of compensated absences for the governmental activities and business-type activities at June 30, 2024 were as follows:
Balance Balance Due Within
July 1, 2023 Accrued Used June 30, 2024 One Year
Governmental Activities 110,168 2 75,662 L (87,823) 5 98,007 $ 89,186 Business-Type Activities 92,911 es 57,325 (62,080) $ 88,156 $ 62,798 NOTE 9 - NON-CITY OBLIGATIONS - PUBLIC FINANCING AUTHORITY The Dos Palos Public Financing Authority (the Authority) was established pursuant to a Joint Exercise of Powers Agreement dated October 17, 1989, by and between the City and the Redevelopment Agency of the City of Dos Palos (the Agency). The Authority was created for the purpose of providing financing for public capital improvements for the City, the Agency and other local agencies. While the Authority could be considered a component unit of the City for financial reporting purposes, its financial activity (assets, liabilities, equity and revenue) is not reported within the funds of the City, because all of its debt is non-commitment debt secured solely by the revenue stream from special assessment districts who benefit from infrastructure improvements financed by the Authority. Cash held by the City on a temporary basis for the Authority is reported as a Custodial Fund.
The Authority has issued two series of Local Agency Revenue Bonds as follows:
Series A - Issued April 1, 1990 in the amount of $12,100,000 with interest at 7.90%, payable semi-annually on October Ist and April 1st of each year, commencing October 1, 1990.
Series B - Issued April 1, 1990 in the amount of $400,000 with interest at 11.00%, payable semi-annually on October Ist and April 1st of each year commencing October 1, 1990.
The bos are special able dies or the ty tort payable sale for is se are rene a reme from the funds generated by the Authority.
35 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 10 - JOINT VENTURES
The City is a member of two joint ventures, the "Water Quality Improvement Joint Powers Agency For The Dos Palos Area" (JPA) and the "Wastewater Disposal Joint Powers Agency For The Dos Palos Area". These joint ventures do not meet the criteria for inclusion in the City's financial statements because the City does not exercise control over them. A brief description of each JPA's activity is reported below:
A. Water Quality Improvement Joint Powers Agency for the Dos Palos Area The City is a participant in this JPA whose responsibility is to establish a common water supply and delivery system for the member participants.
The participants in this JPA and their share of participation are as follows:
City of Dos Palos 67%
South Dos Palos J.P.A. 12%
Midway Water Association 11%
B&B Water Association 4%
Eastside Water Association 4%
Northside Water Association - 2%
Total 100%
The governing Board consists of two members from each entity who are solely responsible for establishing rates. A budget is prepared and adopted on an annual basis. Complete financial statements for Water Quality Improvement Joint Powers Agency For The Dos Palos Area can be obtained from the Agency's contract office at the City of Dos Palos at 1546 Golden Gate Ave., Dos Palos, California.
The City is contingently liable for its pro-rata portion of the loan made by the Farmers Home Administration (FMHA) to finance the infrastructure of this project.
B. Wastewater Disposal Joint Powers Agency for the Dos Palos Area The City is a participant in this JPA whose responsibility is to maintain a common wastewater treatment and disposal system for the member participants.
The participants in this JPA and their share of participation are as follows:
City of Dos Palos 77%
South Dos Palos Co. Water District 12%
Midway Community Services District 11%
Total 100%
The governing Board consists of two members from each entity who are solely responsible for establishing rates. A budget is prepared and adopted on an annual basis. Complete financial statements for Wastewater Disposal Joint Powers Agency For The Dos Palos Area can be obtained from the Agency's contract office at the City of Dos Palos at 1546 Golden Gate Ave., Dos Palos, California.
36 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 11 - RISK MANAGEMENT
The City participates with other public entities in a joint venture under a joint powers agreement which establishes the Central San Joaquin Valley Risk Management Authority (CSJVRMA). The relationship between the City and CSJVRMA is such that CSJVRMA is not a component unit of the City for financial reporting purposes.
The City retains the risk for the first $25,000 in claims paid for Auto and General Liability claims. Workers' Compensation risk is also retained for the first $10,000 in claims paid. The City is covered for the first $1,000,000 of each general liability claim and $250,000 of each Workers' Compensation claim through the CSJVRMA. The City has the right to receive dividends or the obligation to pay assessments based on a formula which, among other expenses, charges the City's account for liability losses under $1,000,000 and Workers' Compensation losses under $50,000. The CSJVRMA participates in an excess pool which provides general liability coverage from $1,000,000 to $10,000,000. The CSJVRMA participates in an excess pool which provides Workers' Compensation coverage from $250,000 to $500,000 and purchases excess insurance above the $500,000 to the statutory limit.
The CSJVRMA is a consortium of fifty-four (54) cities in San Joaquin Valley, California. It was established under the provisions of California Government Code Section 6500 et seq. The CSJVRMA is governed by a Board of Directors, which meets 3-4 times per year, consisting of one member appointed by each member city. The day-to-day business is handled by a management group employed by the CSJVRMA.
The financial position and results of operations for the CSJVRMA, as of June 30, 2024, are presented below:
Total assets $ 179,635,612
Total liabilities 144,400,470
. Total net position $ 35,235,142
Revenues $ 95,596,916
Expenses 94,324,180
Change in net position 1,272,736
At the termination of the joint powers agreement and after all claims have been settled, any excess or deficit will be divided among the cities in accordance with its governing documents.
NOTE 12 - RETIREMENT PLANS
A. General Information About the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost Sharing Multiple- Employer Plan (the Plan) administered by the California Public Employees' Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools.
Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors four rate plans (two miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and City resolution. CaPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CaPERS website. 37 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 12 - RETIREMENT PLANS (Continued)
A. General Information About the Pension Plan (Continued) Benefits Provided
CaPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit.
The cost-of-living adjustments for the Plan are applied as specified by the Public Employees' Retirement Law.
The rate plans' provisions and benefits in effect at June 30, 2024, are summarized as follows:
Miscellaneous
ist Tier PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3%@60 2% @62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-60 52 - 67
Monthly benefits, as a % of annual salary 2.0% to 3.0% 1.0% to 2.5% Required employee contribution rates 8.00% 7.75%
Required employer contribution rates 16.440% 7.680%
Safety
= 1st Tier PEPRA
Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @50 2.7% @57
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50-57
Monthly benefits, as a % of annual salary 3.00% 2.0% to 2.7% Required employee contribution rates 9.00% 13.75%
Required employer contribution rates 25.650% 13.540%
Beginning in fiscal year 2016, CaPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund, if applicable. The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $292,610 for the fiscal year ended June 30, 2024.
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires that the employer rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
The City's contributions to the plan recognized as part of pension expense for the year ended June 30, 2024 were • $521,489.
38 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 12 - RETIREMENT PLANS (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $4,545,984.
The City's net pension liability for the Plan is measured as a proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022, rolled forward to June 30, 2023, using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2023 was as follows:
Proportion - June 30, 2022 0.0360%
Proportion - June 30, 2023 0.0364%
Change - Increase (Decrease) 0.0004%
For the year ended June 30, 2024, the City recognized pension expense of $830,347. At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to the measurement date 554,482 $ Changes of assumptions 271,170
Differences between actual and expected experience 268,743 33,345 Net differences between projected and actual earnings on plan investments 695,067
Change in employer's proportion 155,173 49,650
Differences between the employer's actual contributions and the employer's proportionate share of contributions 1,827 139,726 Total $ 1,946,462 $ 222,721
$554,482 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflow of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended
June 30
2025 $356,738
2026 247,489
2027 545,263
2028 19,769
2029
Thereafter :
39 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 12 - RETIREMENT PLANS (Continued)
C. Actuarial Assumptions
The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 5.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90%)
Derived using CaPERS Membership
Mortality Data for all Funds(2)
(1) Net of pension plan investment expenses, including inflation (2) The mortality table was developed based on CaPERS specific data.
The table includes 15 years of mortality improvements using Society of Actuaries Scale 80% of scale MP 2020.
The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CaPERS website.
D. Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CaPERS took into account both short-term and long-term market return expectations as well as the expected PERF cash flows. Using historical returns of all the funds' asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. 40 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 12 - RETIREMENT PLANS (Continued)
D. Discount Rate (Continued)
The expected real rates of return by asset class are as follows:
Assumed Asset Real Return Years 1-
Asset Class Allocation 10(212)
Global equity-cap-weighted 30.00% 4.45%
Global equity non-cap-weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities . 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage - (5.00)% (0.59)%
Total 100.00%
(' An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management study.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Discount Rate -1% Current Discount Rate Discount Rate +1%
5.90% 6.90% 7.90%
$ 6,928,033 $ 4,545,984 2,590,958
E. Pension Plan Fiduciary Net Position
Detailed information about the Plan's fiduciary net position is available in the separately issued CalPERS financial reports.
F. Payable to the Pension Plan
The City did not have an outstanding amount of contributions to the pension plan required for the year ended June 30, 2024.
•
41 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 13 - COMMITMENTS AND CONTINGENCIES
A. Legal Activities
There are various claims and legal actions pending against the City for which no provision has been made in the financial statements. In the opinion of the City Attorney and City Management, liabilities arising from these claims and legal actions, if any, will not be material to these financial statements.
B. Federal and State Grant Programs
The City participates in grant programs which are governed by various rules and regulations of the grantor agencies.
Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the City has not complied with the rules and regulations governing the grants, refunds of any money received may be required and the collectability of any related receivable may be impaired. In the opinion of the City, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying combined financial statements for such contingencies.
NOTE 14 - DEFICIT FUND BALANCE
The following funds contained a deficit fund balance as of June 30, 2024. Future revenues or transfers from other funds are expected to offset these deficits.
Nonmajor governmental funds:
CMAQ Fund 9,716
Major enterprise funds:
Refuse Fund $ 696,319
NOTE 15 - ACCOUNTING CHANGES AND ERROR CORRECTIONS
During the year ended June 30, 2024, the City identified and corrected prior period misstatements in the opening fund balance and net position of the governmental activities, various governmental funds, business-type activities and enterprise funds. These adjustments include corrections to previously reported activity to ensure compliance with generally accepted accounting principles (GAAP). A detailed summary of these changes to the opening balances is provided in the tables below:
42 CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 15 - ACCOUNTING CHANGES AND ERROR CORRECTIONS (Continued) Government Governmental
Wide Funds
Nonmajor
Governmental Governmental
Activities Funds
Fund balance/net position, June 30, 2023, as previously presented $ 7,541,911 $ 621,322
Error correction:
Overstatement of receivables (490,016) (490,016)
Understatement of accumulated depreciation (78,848)
Total error correction (568,864) (490,016)
Fund balance/net position, July 1, 2023, as restated $ 6,973,047 $ 131,306 Government Enterprise
Wide Funds
Business-Type
Activities Refuse
Fund balance/net position, June 30, 2023, as previously reported 3,127,979 $ (527,567)
Error correction:
Understatement of accumulated depreciation (11,487) (11,487) Total error correction (11,487) (11,487)
Fund balance/net position, July 1, 2023, as restated $ 3,116,492 $ (539,054) NOTE 16 - FUND-LEVEL GOING CONCERN CONSIDERATIONS
As of June 30, 2024, the City's Water and Refuse Enterprise Funds are currently experiencing ongoing financial challenges related to cash flow and fund-level equity. These funds reported net negative cash positions in the City's pooled cash account of approximately $1,435,942 and $523,559, respectively. These negative cash positions are being supported through temporary borrowing, represented by due to/due from balances from other City funds, including the Sewer Fund, General Fund, and other restricted funds.
The General Fund, which has historically served as a primary source of internal liquidity, does not currently have sufficient available cash to fully cover these negative balances. Additionally, the use of restricted funds to support unrelated operations may raise compliance concerns and limit future financial flexibility.
CITY OF DOS PALOS | JUNE 30, 2024
Notes to the Basic Financial Statements
NOTE 16 - FUND-LEVEL GOING CONCERN CONSIDERATIONS (Continued) These conditions raise substantial doubt about the ability of the City to meet its obligations as they come due during the twelve months following the issuance of the financial statements. Without timely corrective actions, the financial position of these funds. may further deteriorate, potentially resulting in delayed payments to vendors, deferred capital improvements, or service delivery challenges.
City management is evaluating options to address these deficits. Potential actions may include:
• Implementation of recently adopted Proposition 218 utility rate increases (management to specify which funds are affected),
• Consideration of formalized interfund borrowing arrangements, • Reductions in operating expenditures or capital deferrals, • Exploration of outside funding sources, including grants or short-term financing, • Long-term financial restructuring of enterprise fund operations.
As of the date of these financial statements, a comprehensive remediation plan has not been finalized or formally approved by City Council. The city expects to bring forward options for Council consideration in the upcoming fiscal year.
REQUIRED SUPPLEMENTARY INFORMATION
45 BUDGETARY COMPARISON SCHEDULES
46 CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024 Budgetary Comparison Schedules
General Fund
- Budgeted Amounts
Variance with
Original Final Actual Final Budget
REVENUES
Property taxes $ 523,144$ 459,086 $ 479,901 $ 20,815
Property taxes -in-lieu-of vehicle license fees 546,780 581,864 581,864 - Sales and use taxes 555,000 469,956 489,867 19,911
Intergovernmental 208,452 148,154 149,058 904
Licenses, fees and permits 296,800 213,928 212,716 (1,212) Other 41,100 48,977 48,595 (382)
Charges for services 476,826 408,197 408,293 96
Fines, forfeitures and penalties 14,000 9,399 9,661 262 Use of money and property 11,000 16,347 48,275 31,928
Total revenues - 2,673,102 2,355,908 2,428,230 72,322
EXPENDITURES
Current:
General government 375,000 1,207,236 766,579 440,657
Public safety 1,640,000 1,833,297 2,206,762 (373,465)
Public works 216,800 227,434 230,520 (3,086)
Parks 273,502 219,587 222,037 (2,450)
Recreation 118,900 148,289 151,197 (2,908)
Debt service:
Principal 46,200 28,208 23,947 . 4,261
Interest 4,260 (4,260)
Total expenditures 2,670,402 3,664,051 3,605,302 58,749 Excess (deficiency) of revenues over
(under) expenditures - 2,700 (1,308,143) (1,177,072) 131,071
OTHER FINANCING SOURCES (USES)
Proceeds on debt issuance 2,004,002 2,004,002
Net change in fund balance 2,700 ≤ (1,308,143) 826,930 $ 2,135,073 Fund balance - beginning 1,542,881
Fund balance - ending $ 2,369,811
:
The Notes to the Budgetary Comparison Schedules are an integral part of this statement. 47 CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024 Budgetary Comparison Schedules
Measure V Fund
Budgeted Amounts
Variance with
Original Final Actual Final Budget
REVENUES
Sales and use taxes $ 277,000 $ 328,940 $ 357,735 $ 28,795 Total revenues 277,000 328,940 357,735 28,795
EXPENDITURES
Current:
Public works 277,000 55,304 55,304
Total expenditures 277,000 55,304 55,304
Excess (deficiency) of revenues over
(under) expenditures • $ 273,636 302,431 $ 28,795
Fund balance - beginning 1,654,354
Fund balance - ending $ 1,956,785
The Notes to the Budgetary Comparison Schedules are an integral part of this statement. 48 CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024 Notes to the Budgetary Comparison Schedules
NOTE 1 - BUDGETARY INFORMATION
Budgets are adopted on a basis consistent with generally accepted accounting principles. As a General Law City, the City is not legally required to adopt a budget; however, the City Council's policy is to adopt an annual line-item budget for the General, Special Revenue, and Enterprise Funds to maintain administrative control. This budget is adopted in total by resolution and, accordingly, the legal level of control of expenditures for the City as a whole. The City Manager may authorize budget transfers between funds or departments, provided the budgeted expenditures in total do not increase.
All annual appropriations lapse at the fiscal year end. Project-length financial plans are adopted for all capital project funds.
NOTE 2 - EXCESS OF EXPENDITURES OVER APPROPRIATIONS
As of June 30, 2024, expenditures exceeded appropriations in individual fund as follows:
Appropriations Category Variance
General Fund:
Current:
Public safety $ 373,465
Public works 3,086
Parks 2,450
Recreation 2,908
Debt service:
Interest 4,260
49 DEFINED BENEFIT PENSION PLAN
CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024
Defined Benefit Pension Plan - Cost-Sharing Multiple-Employer Plan Schedule of Proportionate Share of Net Pension Liability Last 10 Years
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Proportion of the net pension liability 0.0246% 0.0270% 0.0293% 0.0297% 0.0301% 0.0310% 0.0321% 0.0351% 0.0360% 0.0364% Proportionate share of the net pension liability 1,543,673 $ 1,850,619 $ 2,531,729 $ 2,949,546 $ 2,903,279 $ 3,178,282 $ 3,492,682 $ 1,898,378 $ 4,155,523 $ 4,545,984 Covered payroll 962,437$ 1,129,984 $ 1,125,105 $ 1,322,138S 1,083,931 $ 1,013,390 $ 1,303,412 $ 1,501,616 $ 1,713,003 $ 1,765,603 Proportionate share of the net pension liability
as a percentage of covered pavroll 160.39% 163.77% 225.02% 223.09% 267.85% 313.63% 267.96% 126.42% 242.59% 257.47% Plan fiduciary net position as a percentage of the
total pension liability 84.51% 82.11% 76.68% 76.02% 77.47% 76.99% 75.63% 87.41% 74.51% 74.03% Notes to Schedule:
chane dude i ence even se increase tie taper retre lump sum death benef from 50 52,00 frany death ecuring on or after July 2, 2023. The impact from this change is demed to be immaterial Changes of Assumptions - None
51 CITY OF DOS PALOS | FOR THE YEAR ENDED JUNE 30, 2024 Defined Benefit Pension Plan - Cost-Sharing Multiple-Employer Plan Schedule of Contributions
Last 10 Years
2017 2018
Actuarially determined contribution $161,715 250,448 5 304,502 360,044 $ 429,793 $ 492,011 $ 521,489 $ 554,482 Contributions in relation to the actuarially
determined contributions 161,715 250,448 265,564 274,479 304,502 360,044 429,793 492,011 521,489 554,482 Contribution deficiency (excess) : $
Covered payroll $1,129,984 $ 1,125,105 $ 1,322,138 $ 1,083,931 $ 1,013,390 $ 1,303,412 $ 1,501,616 $ 1,713,003 $ 1,765,503 $ 2,005,853 Contributions as a percentage of covered payroll 14.31% 22.26% 20.09% 25.32% 30.05% 27.62% 28.62% 28.72% 29.54% 27.64%
SUPPLEMENTARY INFORMATION
53 NONMAJOR GOVERNMENTAL FUNDS
Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes.
54 CITY OF DOS PALOS | JUNE 30, 2024
Special Revenue Funds:
Combining Balance Sheet
Traffic
Storm Drain Cops Hiring Gas Tax Gas Tax Congestion Gas Tax Gas Tax Gas Tax STP Fees Grant 2014 2106 2107 _Relief 2107.5 2105 2103 Exchange ASSETS
Cash and investments 2,858 12 1,143 18,762 4,626 1,290 13,873 6,307 Receivables 94,713 1,780 4,270 3,090 4,420 79,981
Due from other funds
Total assets 2,869 94,713 1,792 5,413 18,762 4,626 4,380 18,293 86,288
LIABILITIES
Accounts payable 4,459 55 62 62 1,470
Salaries and benefits payable 10,08° 842 1,200 1,202 1,815 Due to other funds
Total liabilities 10,058 842 4,459 55 1,262 1,264 3,285
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 79,981
Total deferred inflows of resources 79,981
FUND BALANCES (DEFICITS)
Restricted for:
Public safety 2,869 84,655 3,118
Street maintenance 18,762 4,571 17,029
Economic development
Housing rehab
Unassigned 3,022
Total fund balances (deficits) 2,869 84,655 950 954 18,762 4,571 3,118 17,029 3,022 Total liabilities, deferred inflows of
resources, and fund balances (deficits) 2,869 94,713 1,792 5,413 18,762 4,626 4,380 18,293 86,288 55 CITY OF DOS PALOS | JUNE 30, 2024
Special Revenue Funds
Combining Balance Sheet
(Continued)
Local
TEA CMAQ. Transportation DOJ Tobacco CDBG
Exchange Fund Fund RMRA Grant Fund Grant Fund CDBG Grant EDBG Grant COBG Grant Totals ASSETS
Cash and investments 63 99,026 1,900 43,684 5,000 $ 63,087 $ 261,631 Recelvables 12,061 33,002 812 234,140
Due from other funds 102,659 102,659
Total assets 99,026 116,620 33,002 43,684 5,000 63,899 _ 598,430
LIABILITEES
Accounts payable 505 . - $ 6,613
Salaries and benefits payable 1,698 • 16,815
Due to other funds 9,716 19,530 59,245
Total liabilities 9,716 505 51,228 82,674
DEFERRED INFLOWS OF RESOURCES
Unavallable revenues 79,981
Total deferred inflows of resources 79,981
FUND BALANCES (DEFICITS)
Restricted for:
Public safety 84,655
Street maintenance • . 98,521 116,620 • • 263,457
. Economic development 63,899 63,899
Housing rehab 43,684 5,000 48,684
Unassigned (9,716) (18,226) (24,920)
Total fund balances (deficits) (9,716) 98,521 116,620 (18,226) 43,684 5,000 63,899 435,775 Total liabilities, deferred inflows of
resources, and fund balances (deficits) 99,026 116,620 33,002 43,684 5,000 $ 63,899 598,430 56 CITY OF DOS PALOS | JUNE 30, 2024
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Storm Drain Cops Hiring Gas Tax Gas Tax Traffic Cong Gas Tax Gas Tax Gas Tax Fees Grant 2014 2106 2107 Relief 2107.5 2105 2103 STP Exchange
REVENUES
Intergovernmental 1,500 195,155 20,856 47,577 2,000 35,149 52,706 78,721 Other
Use of money and property
Total revenues 1,541 195,155 20,856 47,577 2,000 35,149 52,706 78,721
EXPENDITURES
Current:
Public safety 110,740 40,562
Public works 20,78 17,958 2,377 44,568 63,922
Total expenditures 110,740 20,478 47,958 2,377 44,568 40,562 63,922 Excess (deficiency) of revenues
over (under) expenditures 1,541 84,415 378 (381) (377) (9,419) 12,144 14,799 Net position - beginning, as previously reported 1,328 240 1,335 18,762 4,948 12,537 4,885 (11,777) Error correction (see footnote 15)
Fund balances - beginning, as restated 240 572 1,335 18,762 4,948 12,537 4,885 (11,777) Fund balances (deficits) - ending 2,869 $ 84,655 950 954 18,762 4,571 $ 3,118 $ 17,029 S 3,022 57 CITY OF DOS PALOS | JUNE 30, 2024
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
CMAQ Local DOS Tobacco COBG
Exchange Fund Transp Fund RMRA Grant Fund Grant Fund CDBG Grant EDBG Grant CDBG Grant Totals
REVENUES
Intergovernmental revenues 727 104,045 146,577 44,005 727,518 Other 1,500
Use of money and property 1,842 1,883
Total revenues 104,045 146,577 46,005 1,842 730,901
EXPENDITURES
Current:
Public safety 19,849 130,589
Public works 4,140 29,116 12,122 295,843
Total expenditures 4,140 29,416 42,422 19,849 426,432
over (unter agent turn e 74,629 24,156 304,169
(3,413) 104,155 1,842
Net position - beginning, as previously reported (6,303) 23,892 12,465 (42,382) 259,333 160,908 63,899 116,617 621,322 Error correction (see footnote 15) (217,491) (155,908) (116,617) (490,016) Fund balances - beginning, as restated (6,303) 23,892 12,465 (42,382) 41,842 5,000 63,899 131,306 Fund balances (deficits) - ending (9,716) $ 98,521 116,620 (18,226) enl 43,684 5,000 ≤ 63,899 435,775 58 PROCLAMATION
NATIONAL HEALTH CENTER WEEK 2025
WHEREAS, for nearly 60 years, Community Health Centers have provided high-quality, affordable, comprehensive primary and preventive health care in our nation's medically underserved communities, delivering value to, and having a significant impact on America's health care system; and
WHEREAS, as the country's largest primary care network, Community Health Centers are the health care home for over 32.5 million Americans in over 16,000 communities across the country. One in every ten people in the United States gets their care at a Community Health Center; and
WHEREAS, Community Health Centers are a critical element of the nation's health system, serving rural, suburban, island, frontier, and urban populations often providing the only accessible and dependable source of primary care in their communities. Nationwide, Community Health Centers serve one in every five residents of rural areas; and WHEREAS, Community Health Centers are responding to the chronic disease epidemic by expanding access to primary care, which keeps Americans healthy and out of expensive health care settings like hospital emergency rooms; and
WHEREAS, Community Health Centers develop new approaches to integrating a wide range of services beyond primary care, including oral health, vision, behavioral health, nutrition, and pharmacy services, to provide comprehensive care, allowing each patient to thrive. Health centers have more than doubled their behavioral health workforce in the last decade to meet Americans' growing need for behavioral health services; and WHEREAS, Community Health Centers are governed by patient-majority boards, ensuring patients are engaged in their health care decisions, and WHEREAS, Community Health Centers are locally owned and operated small businesses that serve as critical economic engines, helping to power local economies by generating $118 billion in economic activity, and
WHEREAS, Community Health Centers nationally support more than 650,000 direct and indirect jobs, including physicians, nurse practitioners, physician assistants, licensed family therapists, and certified nurse-midwives who work as part of multi-disciplinary clinical teams designed to treat the whole patient; and
WHEREAS, the Community Health Center model continues to prove an effective means of overcoming barriers to healthcare access, including geography, income, and insurance status - improving health outcomes and reducing healthcare system costs; and WHEREAS, Community Health Centers provided more than 3.6 million cancer screenings in 2023 and helped 65% of patients control their hypertension and 71% of their patients control their diabetes; and
WHEREAS, Community Health Centers are on the front lines of emerging health care crises, providing access to care for our nation's veterans, addressing the opioid epidemic, and responding to public health threats in the wake of natural disasters. Community Health Centers operate over 1,000 mobile units, providing accessible health services in hundreds of rural and urban communities; and
WHEREAS, National Health Center Week offers the opportunity to celebrate America's nearly 1,500 Community Health Center organizations with over 16,000 service delivery sites, including more than 4,100 school-based sites; and
WHEREAS, we honor their dedicated staff, board members, patients, and all those responsible for their continued success and growth since the first health centers opened their doors nearly 60 years ago; and
WHEREAS, during National Health Center Week, we celebrate the legacy of America's Community Health Centers, and their vital role in shaping the past, present, and future of America's health care system; and
NOW, THEREFORE, I, Katy Reed, Mayor of the City of Dos Palos, proclaim August 3-9, 2025, as National Health Center Week. I encourage all Americans to participate in this week by visiting their local health center and celebrating this vital partnership between America's Community Health Centers and the communities they serve.
DOS PALOS CITY COUNCIL REGULAR MEETING MINUTES
JUNE 17 2025
A. CALL TO ORDER: Mayor Reed called a Regular Meeting of the Dos Palos City Council To order at 6:01 p.m. in the City-County building at 1546 - 1554 Golden Gate Avenue In Dos Palos, California on Tuesday, June 17 2025.
1. The Flag Salute was led by Councilmember Armondo Bravo
2. The Invocation was led By Thomas Pigg
3. Roll Call: City Clerk Tracy Mosby called the roll finding Councilmembers
Present: Mayor Reed, Councilmember Pigg, Councilmember Bravo, Councilmember Porter, and Councilmember Bautista.
. 4. P.D. negotiations added in closed session Councilmember Bravo made a motion to add Negotiations to the July Agenda Councilmember Porter seconded the motion The motion passed 5-0
5. Public Comment: None
B. COMMENDATIONS, PRESENTATIONS, and PROCLAMATIONS.
Chief Smothers awarded Jessie Hamerslough an award
C. CONSENT CALENDAR:
1. It was moved by Councilmember Porter and seconded by Councilmember Pigg to approve the City of Dos Palos regular meeting Minutes for May 20, 2025, the motion was passed on a 5-0 as follows AYES; Reed, Pigg, Bravo, Porter and Bautista.
NOES: None ABSENT: None
2. It was moved by Councilmember Porter and seconded by Councilmember Pigg to approve the Minutes of the June 10, 2025 Special Meeting, the motion passed on a 5-0 as follows: AYES Reed, Pigg, Bravo, Porter, and Baustista. NOES: None.
3. It was moved by Councilmember Porter and seconded by Councilmember Pigg to approve the Pre-Paids for May 2025, the motion was passed on a 5-0 as follows AYES: Reed, Pigg, Bravo, Porter, and Bautista. NOES: None, ABSENT: None.
4. It was moved by Councilmember Porter and seconded by Councilmember Pigg To approve the Warrants for June 2025, the motion passed 5-0 as follows AYES:
Reed, Pigg, Bravo ,Porter and Bautista: NOES None ABSENT: None
5. It was moved by Councilmember Porter and seconded by Councilmember Pigg To appoint Brandon VoAllman to the Planning Commission, the motion passed 5-0 as follows AYES: Reed, Pigg, Bravo, Porter and Bautista: NOES None ABSENT: None D. BUSINESS:
1. After discussion a motion was made to Consider Approving Resolution 2025-08, Setting the Appropriations Limit (Gann) for FY 2025/2026 at $12,324,808.
Motion to approve was made by Councilmember Pigg and seconded by Councilmember Porter comments opened at 6:15 and closed at 6:16 motion passed 5-0
2. After discussion a motion was made to Consider Approving Resolution 2025-09, for the Adoption of the 2025-2026 Budget, Including Specific Provisions and Authorizations. A motion was made by Councilmember Bravo And seconded by Councilmember Porter, comments opened at 6:16 and Closed at 6:17 motion passed 5-0
3. After discussion a motion was made to Consider Entering into an MOU with the Chief of Police for Three (3) Years, Beginning June 16, 2025, Through June 30, 2028. A motion was made by Councilmember Pigg and seconded by Councilmember Bautista comments opened at 6:20 and closed at 6:21 with no Public comment, motion passed 5-0.
4. After discussion a motion was made to consider Entering into an MOU with The Dos Palos Management Employees, Beginning July 1, 2025. A Motion was made by Councilmember Porter and seconded by Councilmember Bravo, comments opened at 6:23 and closed at 6:24 with no Public comment motion passed 5-0.
5. After discussion a motion was made to consider Authorizing the City Manager to Enter into a One (1) Year contract Extension with Orozco Landscaping ending On June 30, 2026 a motion was made by Councilmember Pigg and seconded by Councilmember Porter, comments open at 6:26 and closed at 6:27 with no discussion motion passed 5-0.
6. After discussion a motion to consider Accepting the Lowest Responsive and Responsible Bid for the East Blossom Street Rehabilitation Project. Lowest bid was Granite Rock, $1,898,019 with Alternate $370,873. A motion was made by Councilmember Bravo and seconded by Councilmember Pigg comments opened at 6:36 and closed at 6:37 with no discussion motion passed 5-0.
7. After discussion a motion was made to consider and Approve Updated Agreement for Legal Services with Lozano Smith a motion was made by Councilmember Bautista and seconded by Councilmember Porter comments opened at 6:40 and closed at 6:41 with no public comments motion passed 5-0.
8. After discussion a motion was made to consider Authorizing the City Manager to enter into an Addendum to the Existing Agreement with Mid-Valley Disposal, LLC For the Addition of Street Sweeping Services a motion was made by Councilmember Pigg and seconded by Councilmember Porter public comment open at 6:43 and closed at 6:44 motion passed 4-1 with Councilmember Bautista abstained.
9. After discussion a motion was made to consider the Creation of an Events Committee comments opened at 7:13 and closed at 7:14 with no public Comment there will bring it back at the next meeting.
E. CORRESPONDENCE, EVENTS, COUNCIL & STAFF REPORTS:
1. Several Reports were given.
F. ADJORN TO CLOSED SESSION:
8:11 P.M.
G. RECONVENE INTO OPEN SESSION AND REPORT FROM CLOSED :
8:55P.M.
A motion made by Councilmember Porter and Seconded by Councilmember Bravo To Authorize the City Manager to execute agreement with DPPOA motion passed 5-0 A motion was made By Councilmember Porter and seconded by Councilmember Pigg To authorize the City Attorney to intervein on the City's behalf of the anticipated litigation. motion passed 5-0
H. ADJOURMENT 8:56 P.M. in memory of local departed Harold Batey 90 Juan Espinoza 85
Bobby Parsons 80
Sigifredo Rodriguez 62
Betty Hinman 59
Melissa Weaver 49
Respectfully Submitted By:
Tracy Mosby, City Clerk
Pre-Paid Listing - June 2025
25499 Ailani Garcia 06/03/2025 $ 200.00
25500 Myleene Isordia 06/03/2025 $ 200.00
25502 McNamara Sports 06/03/2025 $ 311.48
25506 Annysa Santoyo 06/03/2025 $ 700.00
25507 Syserco Energy Solutions, Inc. 06/03/2025 $ 923,226.25 25508 McElvany, Inc. 06/03/2025 $ 68,141.88
25509 Robert Corchado JR 06/05/2025 $ 100.00
25510 Dos Palos Girls Softball Association 06/10/2025 $ 1,018.05 25512 Premier Valley Bank 06/11/2025 75,121.70
25513 W.M. Lyles Company 06/11/2025 $ 1,427,312.29
25597 Amazon Capital Services 06/13/2025 $ 292.21
25598 Lozano Smith Attorneys at Law 06/13/2025 $ 8,025.60 25599 Central California Irrigation 06/13/2025 $ 12,150.00 25600 Dos Palos Girls Softball Association 06/13/2025 $ 249.00 25601 United Rentals 06/13/2025 $ 425.00
25608 Casey Moving Systems 06/17/2025 $ 46.80
25624 Robert Corchado JR 06/17/2025 $ 50.00
25625 Ailani Garcia 06/17/2025 $ 150.00
25626 Myleene Isordia 06/17/2025 $ 150.00
25628 McNamara Sports 06/17/2025 $ 32.46
25630 Annysa Santoyo 06/17/2025 $ 450.00
25631 Gerardo Villegas 06/17/2025 $ 100.00
25633 Liebert Cassidy Whitmore A Pro 06/24/2025 $ 132.00 25634 Syserco Energy Solutions, Inc. 06/24/2025 $ 584,299.59 Report Total (24 checks): $ 3,102,884.31
AP Checks by Date - Summary by Check Date (7/10/2025 12:42 PM) Warrant Listing - July 2025
25655 AAA Business Supplies & Interiors 07/10/2025 $ 394.22 25656 Amazon Capital Services 07/10/2025 $ 988.66
25657 Anderson Lock & Key 07/10/2025 $ 7,511.58
25658 Aqua-Metric 07/10/2025 $ 21,957.54
25659 AT&T 07/10/2025 $ 421.76
25660 Lozano Smith Attorneys at Law 07/10/2025 $ 10,238.10 25661 AutoZone, Inc. 07/10/2025 $ 50.19
25662 Axon Enterprise, Inc. 07/10/2025 $ 6,613.80
25663 Bankcard Center 07/10/2025 $ 19.99
25664 Bureau of Reclamation 07/10/2025 $ 4,004.64
25665 California Forensic Institute 07/10/2025 $ 400.00 25666 California Police Chiefs Assc. 07/10/2025 $ 402.00 25667 Caltronics Business Systems 07/10/2025 $ 1,398.61 25668 Casey Moving Systems 07/10/2025 $ 98.28
25669 Cintas 07/10/2025 $ 508.50
25670 Comcast 07/10/2025 $ 385.16
25671 Comcast 07/10/2025 $ 302.74
25672 Adam Coronado 07/10/2025 $ 543.06
25673 CSG Consultants, Inc. 07/10/2025 $ 178.00
25674 Department of Justice 07/10/2025 $ 66.00
25675 Don's Mobile Glass 07/10/2025 $ 295.00
25676 Dos Palos Fire Dept. 07/10/2025 $ 225.00
25677 Econolite Control Products, INC 07/10/2025 $ 273.22 25678 Elan Financial Services 07/10/2025 $ 2,763.51
25679 Electric Drives, Inc. 07/10/2025 $ 14,142.39
25680 Elite Uniforms 07/10/2025 $ 1,726.14
25681 Fresno Mobile Radio Inc. 07/10/2025 $ 350.00
25682 Geoamalytical Laboratories, INC 07/10/2025 $ 1,818.00 25683 Great America Financial Services 07/10/2025 $ 550.29 25684 Harbor Freight Tools 07/10/2025 $ 41.30
25685 HCL Machine Works, Inc 07/10/2025 $ 463.46
25686 Home Depot Credit Services 07/10/2025 $ 3,938.78
25687 J. B. Anderson Land Use Planning 07/10/2025 $ 4,950.00 25688 JG Hardware Store 07/10/2025 $ 23.83
25689 Justin's Tire and Auto 07/10/2025 $ 166.54
25690 Katen Pest Solutions 07/10/2025 $ 340.00
25691 Liebert Cassidy Whitmore A Pro 07/10/2025 $ 3,256.00 25692 Local Agency Formation Commision 07/10/2025 $ 777.94 25693 Martin Water Consulting 07/10/2025 $ 320.00
25694 Melin Enterprises, INC 07/10/2025 $ 771.00
25695 Merced County Public Works 07/10/2025 $ 954.68
Warrant Listing - July 2025
25696 Merced County Public Works 07/10/2025 $ 564.49
25697 Mid Valley IT 07/10/2025 $ 4,811.48
25698 Midway Community Water Distric 07/10/2025 $ 7,665,96 25699 North Dos Palos Water District 07/10/2025 $ 2,041.95 25700 Northstar Chemical 07/10/2025 $ 8,013.96
25701 Orozco Yard Maintenance 07/10/2025 $ 3,100.00
25702 Pace Supply Corp 07/10/2025 $ 12,555.56
25703 Pacific Gas & Electric 07/10/2025 $ 37,874.79
25704 Pacific Gas & Electric 07/10/2025 $ 455.40
25705 Pegboard 07/10/2025 $ 29,390.54
25706 Pinto Upholstery 07/10/2025 $ 232.75
25707 Marcus Porter 07/10/2025 $ 311.91
25708 Price Paige & Company CPA's, LLP 07/10/2025 $ 20,703.00 25709 ProForce Law Enforcement 07/10/2025 $ 5,217.19
25710 Quad Knopf 07/10/2025 $ 73,751.46
25711 Quantum FSD, Inc. 07/10/2025 $ 124.95
25712 Richard Martorello 07/10/2025 $ 6,420.00
25713 San Luis & Delta Mendota Water 07/10/2025 $ 13,586.91 25714 Simplot Grower Solutions Firebaugh 07/10/2025 $ 2,012.50 25715 Smile Business Products, Inc 07/10/2025 $ 837.24
25716 South Dos Palos Water District 07/10/2025 $ 3,778.85 25717 Springbrook Holding Company, LLC 07/10/2025 $ . 21,815.12 25718 Star Sanitation LLC 07/10/2025 $ 163.24
25719 Streamline Software, Inc. 07/10/2025 $ 145.45
25720 T&T Pavement Markings & Products 07/10/2025 $ 2,683.57 25721 The Phone Connection Inc. 07/10/2025 $ 217.50
25722 The Westside Express 07/10/2025 $ 70.00
25723 Toro Petroleum 07/10/2025 $ 7,212.56
25724 Townsend Public Affairs, INC 07/10/2025 $ 5,000.00 25725 USABlue Book 07/10/2025 $ 1,210.58
25726 Utility Service Co., Inc 07/10/2025 $ 3,990.62
25727 Valley Animal Hosptial 07/10/2025 $ 207.00
25728 Water Connection 07/10/2025 $ 5,140.89
25729 Water Reclamation Equipment, Inc. 07/10/2025 $ 52.67 25730 Westamerica Bank 07/10/2025 $ 1,503.84
25731 Westamerica Bank 07/10/2025 $ 741.92
25732 Wolverine Printing 07/10/2025 $ 1,886.21
Report Total (78 checks): Total for 7/10/2025: $ 380, 121.97 AP Checks by Date - Summary by Check Date (7/10/2025 12:26 PM) ORDINANCE NO. 447
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOS PALOS MOVING EXISTING SECTION 3.12.160 OF CHAPTER 3.12 OF TITLE 3 TO A NEW CHAPTER
3.14 OF TITLE 3 OF THE CITY OF DOS PALOS MUNICIPAL CODE
RECITALS
WHEREAS, on December 17, 2024, the City Council of the City of Dos Palos ('City") adopted Ordinance No. 443, contingent on the voters of the City approving a ballot measure ("Measure") for a one-half (1/2) of one percent (.50%) Transactions and Use Tax ("Tax"), as authorized by applicable law, to be submitted to the voters of the City at the March 4, 2025, special municipal election, in accordance with applicable law; and WHEREAS, the voters approved the Measure at the special municipal election; and
WHEREAS, Ordinance No. 443 was codified in the City Municipal Code in Section
3.12.160, of Chapter 3.12, of Title 3; and
WHEREAS, the California Department of Tax and Fee Administration ("CDTFA") subsequently recommended that the language referring to the Tax be clarified and the Ordinance be codified in a new chapter, rather than in the same chapter as the City's existing Sales and Use Tax, to alleviate any potential for confusion regarding the purpose and application of the Tax; and
WHEREAS, the City Council desires to update the Municipal Code as it relates to the Tax in accordance with the recommendations of the CDTFA.
NOW, THEREFORE, the City Council of the City of Dos Palos does hereby ordain as follows:
SECTION 1. CODIFICATION OF TRANSACTIONS AND USE TAX RATE Section 3.12.160 of Chapter 3.12 of Title 3 of the Municipal Code is hereby moved to a new Chapter 3.14 of Title 3 of the City of Dos Palos Municipal Code, and shall read as follows:
"Chapter 3.14
TRANSACTIONS AND USE TAX
3.14.010 Short Title of Chapter.
This chapter, along with the provisions of uncodified ordinance No. 444, shall be known as the "Transactions and Use Tax Law" of the City.
3.14.020 Transactions and Use Tax Rate.
Notwithstanding anything to the contrary in this Chapter or in Title 3 of the Dos Palos Municipal Code, effective on July 1, 2025, there shall be existing in the City a Transactions and Use Tax at the rate of one-half (1/2) of one percent (.50%).
This tax is in addition to the City's existing sales and use tax as set forth in Chapter
3. 12 of Title 3 of the Dos Palos Municipal Code. The purpose of this Transactions and Use Tax is to fund fire protection services as set forth in Resolution No. 2024- 18 and Ordinance No. 444 (uncodified), and this tax shall be subject to the provisions of Ordinance No. 444 (uncodified). The voters approved the imposition of this Transactions and Use Tax at an election held for that purpose on March 4, 2025, by a super-majority (2/3) of the voters."
SECTION 2. EFFECTIVE DATE.
This Ordinance shall take effect immediately after its adoption. However, the tax imposed by this ordinance shall be operative October 1, 2025, in accordance with California Revenue and Taxation Code section 7265, and remain in effect until amended or ended by the City's voters.
SECTION 3. SUMMARY OF ORDINANCE.
The City Clerk is further directed to cause this Ordinance or a summary of this Ordinance to be published once in a newspaper of general circulation within the County of Merced at least five (5) days prior to adoption and again fifteen (15) days after its 2 adoption. If a summary of the Ordinance is published, then the City Clerk shall cause a certified copy of the full text of the proposed Ordinance to be posted in the office of the City Clerk at least five (5) days prior to the City Council meeting at which the Ordinance is adopted and again after the meeting at which the Ordinance is adopted. The summary shall be approved by the City Attorney.
***************
The foregoing Ordinance was introduced at a regular meeting of the City County held on , 2025 and was adopted at a regular meeting of said City County held on this day of _ 2025, by the following vote.
Mayor Reed voted:
Mayor Pro-Tem Pigg voted:
Councilmember Bravo voted:
Councilmember Bautista voted:
Councilmember Porter voted:
Mayor, City of Dos Palos
ATTEST:
City Clerk
Approved as to Legal form:
CITY ATTORNEY
By.
4916-4129-1597, v. 3
ORDINANCE NO. 448
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOS PALOS ADDING CHAPTER 3.24 TO TITLE 3 OF THE CITY OF DOS PALOS MUNICIPAL CODE
PERTAINING TO THE LEASE OF CITY OWNED REAL PROPERTY
RECITALS
WHEREAS, Title 3 of the City of Dos Palos ("City") Municipal Code ("Municipal Code") governs revenue and finance within the City, and WHEREAS, Title 3 of the Municipal Code does not currently include a procedure for leasing real property owned by the City; and
WHEREAS, the City Council desires through the passage of this Ordinance to add Chapter 3.24 to Title 3 of the Municipal Code so as to establish a procedure for leasing real property owned by the City.
NOW, THEREFORE, the City Council of the City of Dos Palos does hereby ordain as follows:
SECTION 1. FINDINGS
The City Council has duly considered the full record before it, which may include but is not limited to such things as the staff report, testimony by staff and the public, and other materials and evidence submitted or provided to the City Council. Furthermore, the recitals set forth above are found to be true and correct and are incorporated herein by reference.
SECTION 2. PURPOSE
The purpose of this Ordinance is to add Chapter 3.24 to Title 3 of the Municipal Code in order to establish an efficient and fair procedure for the City to use for the leasing of City owned real property.
SECTION 3. ADDITION TO MUNICIPAL CODE
Chapter 3.24 of Title 3 is hereby added to the City of Dos Palos Municipal Code to read as follows:
"CHAPTER 3.24
LEASE OF CITY OWNED REAL PROPERTY
Sections:
3.24.010 Adoption: purpose.
3.24.020 Definitions.
3.24.030 Surplus real property.
3.24.040 Lease of real property.
3.24.050 Restrictions on leases to City officials.
3.24.010 Adoption: purpose.
In order to establish efficient procedures for the lease of City owned real property at the best value for the City, to clearly define the procedures that must be followed, and to ensure a fair and equitable process for purposes of choosing a lessee for City owned real property.
3.24.020 Definitions.
(a) "Disposition" or "disposal" means the sale, lease or any other form of property disposition.
(b) "Lease" for purposes of.this chapter means the grant by the City of a leasehold estate, rental, license, or other exclusive or nonexclusive right under a less than fee simple estate to use or occupy real property owned by the City for a set term, periodic term such as month-to-month, or at will, with or without the payment of rent, lease payments, license fees, or other consideration; but does not include an easement, equitable servitude, or franchise. A "lease" includes a sublease or an assignment of a lease by the City.
(c) "Real property" means land, buildings, structures and other fixtures or immovable property affixed to the land. At times herein, real property is used interchangeably with the term "property."
(d) "Surplus land" shall mean real property owned by the City that is determined to be no longer necessary for the City's use, except property being held for the purpose of exchange. Property is not surplus if the City has some purpose in mind for its use.
2 3.24.030 Surplus real property.
(a) Prior to disposition of real property, the City Council shall make a determination whether such property is surplus land pursuant to Government Code sections 54220 et seq. (the "Surplus Land Act"). Notwithstanding the foregoing, in the case of property valued at $50,000 or less, the City Manager shall be delegated authority to determine whether the property is surplus land. (b) A determination of the City Council as to whether property is considered surplus land under the Surplus Land Act shall not be required when the lease is for a period of 15 years or less, or the lease is for any duration, including more than 15 years, where no demolition or development is to occur on the subject property. (c) Prior to disposing of surplus land, City shall comply with the requirements of the Surplus Land Act, if applicable, as well as section 3.24.040.
3.24.040 Lease of real property.
This section 3.24.040 shall only apply to the lease of real property which is not considered surplus land subject to the Surplus Land Act. (a) Real property may be leased, not to exceed a period of fifteen years without prior City Council approval, only after an open and competitive request for proposals (RFP) process is initiated by City Council action and in compliance with state law concerning disposition of surplus land, as applicable. Exclusive negotiating agreements shall not be permitted. No negotiations to lease City real property shall occur prior to and without full compliance with section 3.24.030 and this section 3.24.040.
(1) An evaluation committee, to be selected prior to publication of the RFP, shall interview proposers, review and rank all proposals based on a predetermined set of criteria as set forth in the RFP (i.e. price, community benefits, experience, etc.), and make recommendations for selection to present to Council for approval. The committee at a minimum shall consist of two employees from the affected department as well as at least two additional employees and/or members of the public. The composition of the committee shall be at the discretion of the City Manager.
Information provided to and prepared by the committee shall not be deemed a public record until such time as a contract shall be placed on the agenda for Council consideration.
(2) Once an RFP has been finalized, the affected department shall advertise the Notice Inviting Proposals in a local newspaper of general circulation 3 within the County and on the City website at least two (2) weeks before the proposal submission deadline. Property owners within 1,000 feet of the subject property shall be provided specific notice of the RFP. (3) Contracts for the lease of real property are determined on a "best value" basis, not solely price. In determining best value, the factors to be considered may include, without limitation: price; community benefits; record of business with the City and others; credit record; local employment; experience; qualifications; local tax contribution; and any other legal factor the Council expressly finds is applicable to lease of the property.
(4) After proposals are tendered, the full text of all proposals shall be made available to the committee. The committee shall convene, when applicable, and interview no fewer than the top three ranked proposers, unless fewer than three proposals are received, in which case all proposers shall be interviewed. Further, the committee shall request a proposer's "Last, Best and Final" offer based on information and/or clarification provided during the interview, which will be used to support a recommendation to the Council as to which proposer should be selected to lease the property, or to reject all proposals, including rankings of the top three proposers, or fewer in accordance with this subsection, along with a written explanation for the rankings, and/or rejection of the proposals.
(5) All documents, ranking criteria, and scores provided to or produced by the committee shall be made available to all Councilmembers no later than the time the contract is placed on the agenda for Council consideration. (6) Any potential lessee who does not submit a response to the RFP shall be ineligible to lease the property for one year following the close of the RFP, except pursuant to a subsequent RFP process.
(b) The competitive process set forth in Subsection (a) shall not be required, but may be utilized at the option of the City, for the following:
(1) Lease of property to an adjacent property owner who is acquiring the City- owned real property for the purposes of a project that requires the use of adjoining property;
(2). Lease of property less than 20,000 square feet in size; (3) Renewal or extensions of commercial leases existing as of the effective date of this section.
4 (c) The Council may not vary from the provisions of this Section, except upon making findings of good cause and clear and convincing benefits to the public, and by a supermajority approval.
(d) This ordinance shall be subject to any applicable federal or state laws, regulations, policies, guidance, or grant terms, and to the extent inconsistent, the latter shall apply.
•3.24.050 Restrictions on leases to City officials.
The following enumerated officers and employees of the City may not as principal, agent, attorney or otherwise, be directly or indirectly interested in the lease of any City-owned real property: Mayor, members of the City Council, City Manager, Assistant City Manager, members of the City Planning Commission, City Attorney, City Administrator, City Clerk, Director of Finance, Director of Community Development, Director of Public Works, Director of Utilities, and any other City employee who, because of his or her position with the City, has a potential conflict of interest or a potential advantage over other potential lessees."
SECTION 4. VALIDITY OF ORDINANCE
If any article, section, sub-section, sentence, clause, or phrase of this Ordinance is held by a court of competent jurisdiction to be invalid, such decision shall not affect the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each article, section, subsection, sentence, clause, and phrase hereof, irrespective of the fact that one or more articles, sections, subsections, sentences, clauses, and phrases be declared invalid.
SECTION 5. SUMMARY OF ORDINANCE
The City Clerk is hereby directed to cause a summary of this Ordinance to be published by one insertion in a newspaper of general circulation in the County at least five (5) days prior to adoption and again fifteen (15) days after its adoption. If a summary of the Ordinance is published, then the City Clerk shall cause a certified copy of the full text of the proposed Ordinance to be posted in the office of the City Clerk at least five (5) 5 days prior to the City Council meeting at which the Ordinance is adopted, and again after the meeting at which the Ordinance is adopted. The summary shall be approved by the City Attorney.
SECTION 6. EFFECTIVE DATE
This ordinance shall go into effect and be in full force and operation from and after thirty (30) days following its final passage and adoption. //
6 * * ** * * * _* * **
The foregoing Ordinance was introduced at a regular meeting of the City County held on , 2025 and was adopted at a regular meeting of said City County held on this day of , 2025, by the following vote.
Mayor Reed voted:
Mayor Pro-Tem Pigg voted:
Councilmember Bravo voted:
Councilmember Bautista voted:
Councilmember Porter voted:
Mayor, City of Dos Palos
ATTEST:
City Clerk
Approved as to Legal form:
CITY ATTORNEY
By -
4908-4447-8804, v. 4
RESOLUTION NO. 2025 -10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOS PALOS
AUTHORIZING THE CITY MANAGER TO FILE A REGIONAL SURFACE
TRANSPORTATION PROGRAM (RSTP) EXCHANGE PROGRAM FUND CLAIM FORM FOR FISCAL YEAR 2024/2025
WHEREAS, the Merced County Association of Governments (MCAG) and the California Department of Transportation (Caltrans) have entered into a Standard Agreement contract to exchange unobligated balances of federal Regional Surface Transportation Program (RSTP) funds with non-federal State Highway Account funds; and
WHEREAS, Caltrans Division of Programming releases a 5-year ESTIMATE of RSTP Exchange Program apportionments for inclusion in the Federal Transportation Improvement Program (FTIP) Programming document every 2-years to California Metropolitan Planning Organizations (MPOs);
WHEREAS, MCAG is the designated MPO for Merced County;
WHEREAS, the Annual RSTP Exchange Program fund apportionment is an estimate and subject to change during the fiscal year (FY) due to many Federal Surface Transportation Bill variables including the annual appropriations act as well as other Congressional action (i.e. rescissions); WHEREAS, a FINAL RSTP Exchange apportionment amount is published at the end of the FY 24/25 and can be different than the ESTIMATE RSTP Exchange apportionment figure; WHEREAS, Annually, Caltrans sends MCAG a Standard Agreement contract that includes an RSTP Exchange Program apportionment figure;
WHEREAS, MCAG applies a RSTP population based distribution formula using current Department of Finance (DOF) population estimates (May 2024) to the RSTP apportionment to determine the amount of RSTP Exchange funds to be distribution to MCAG member jurisdictions; WHEREAS, the City of Dos Palos has an ESTIMATE RSTP Exchange Program fund apportionment amount available to claim in FY 24/25 is $81,674.00; WHEREAS, payment of the ESTIMATE RSTP Exchange fund claim will be subject to all conditions specified in the fully executed standard contract agreement between MCAG and Caltrans, as well as the MCAG RSTP Exchange Claim form requirements: Projects to be funded with this claim are only those projects that are defined under Sections 133(b) and 133(c) of Title 23, United States Code and Article XIX of the California State Constitution, implemented in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highways Code.
WHEREAS, if the FINAL RSTP Exchange apportionment figure is higher for FY 24/25 than the ESTIMATE RSTP Exchange apportionment figure, Caltrans would have to revise the RSTP Exchange Standard Agreement contract with the higher RSTP figure before MCAG could instruct the Merced County Auditor Controller's Officer to distribute a greater amount of RSTP Exchange Program funds to member agencies, than identified in this resolution; WHEREAS, if the FINAL RSTP Exchange apportionment figure is lower for FY 24/25 than the ESTIMATE RSTP Exchange apportionment amount, Caltrans does not have to revise the RSTP Exchange contract with the lower amount before MCAG could recalculate the available RSTP Exchange Program funds using the same population-based formula and then instruct the Merced County Auditor Controller's Officer to distribute the lower FY 24/25 FINAL RSTP Exchange Program fund amount to member agencies;
WHEREAS, the City of Dos Palos has established special gas tax street improvement fund as a requirement to receive the RSTP Exchange Program funds; and WHEREAS, it is deemed in the best interest of the City of Dos Palos that the City Manager is authorized to sign the FY 24/25 RSTP Exchange Program fund claim form and to submit said claim formto MCAG for processing.
THEREFORE, BE IT RESOLVED, by the City Council of the City of Dos Palos that that the City Manager is authorized and directed to sign and file the above described FY 24/25 RSTP Exchange Program fund claim on behalf of the City of Dos Palos in the amount of $81,674.00.
The foregoing Resolution 2025-10 was introduced by - which motion was duly _ and said motion was adopted, on a vote of the Members of the secondouncil present at a regular meeting held on July 15, 2025 by the following votes to wit:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
SIGNED: ATTEST:
KATY REED TRACY MOSBY
29# Mayor City Clerk
PH: 209.723.3153
MERCED COUNTY FAX: 209.723.0322
MCAG ASSOCIATION OF
GOVERNMENTS Merced, Ca. 93540
Claim to the Merced County Association of Governments
for Regional Surface Transportation Program (RSTP) Funds in Exchange for State Highway Account Funds FY 2024/2025
Claimant: City of Dos Palos
FY 24/25 Claim Amount: $81,674.00
Claim Guidelines:
Pades cris in the able bely or bete admit thias code any thee ice are ene State Constitution, implemented in accordance with the requirements of Section 182.6(d)(1) of the Streets and Highways Code.
Claim Instructions:
1. List (print or type) each INDIVIDUAL project to be funded with this claim.
2. List the amount of funds to be used for each project.
3. If the project is not a capacity expanding project and is exempt from air quality conformity analysis check the "Exempt" box. (X)
4. If the project is a capacity expanding project and the air quality conformity analysis has been completed for the project as required check the "Air Quality" box. (X) Project Cost of Air Exempt
Project Quality
1. Repairs and Maintenance to Blossom Street, Center Avenue and $ 81,674.00 Valeria Street
2. $
3. $ • •
4. $ • •
Partnering for Regional Solutions
It is understood by this claimant (City of Dos Palos) that payment of this claim is subject to approval by the MCAG Governing Board and must be in accordance with the MCAG and Caltrans Agreement. Said monies (and the interest earned on such monies subsequent to allocation) will be used only for those purposes for which the claim is approved.
The undersigned claimant, by accepting these funds agrees to establish a special account for the purpose of depositing funds received from MCAG pursuant to this agreement:
a. For cities, within their Special Gas Tax Street Improvement Fund; or b. For the county, within their County Road Fund
The undersigned claimant, by accepting these funds, agrees to grant the State of California auditors access to their books and records for the purpose of verifying that funds paid hereunder are properly accounted for and proceeds are expended in or phil accounte accordance with the terms of this agreement. All documents will be available for inspection by authorized Caltrans agents at any time during the project development and for a four-year period from the date of completion of the project, or one year after the audit is completed or waived by Caltrans, whichever is later.
If the undersigned claimant fails to use funds received hereunder in accordance with the terms of the agreement, the claimant agrees to return the exchange funds to MCAG for credit to the special account described above.
Further, the Chief Financial Officer of the claimant certifies that the financial information contained herein is reasonable and accurate to the best of his/her knowledge.
Authorized Representative:
Signature
Dewayne Jones
Print Name
City Manager
Title
Date
Signature of Chief Financial Officer
Manuela Sousa
Print Name
MEMORANDUM OF UNDERSTANDING
BETWEEN
COUNTY OF MERCED
AND
CITY OF DOS PALOS
CONTRACT NO.
THIS AGREEMENT, is made and entered into by and between the County of Merced, a political subdivision of the State of California, (hereinafter referred to as "County"), and the City of Dos Palos (hereinafter referred to as "City").
WHEREAS, County and City desire to implement limited-term, Stop-Gap Fire Protection Services; and
WHEREAS, City desires to help fund three (3) out of the six (6) necessary fire personnel in order to have two (2) fire personnel twenty-four (24) hours per day at the Dos Palos Fire Station #76 to provide fire suppression/prevention capabilities for the City of Dos Palos; and
WHEREAS, County is specially trained, experienced, and competent to perform such services in connection with comprehensive fire protection and other emergency incident response; and
WHEREAS, County fire protection services are provided to the County of Merced under a Cooperative Fire Services Agreement with CAL FIRE; and WHEREAS, the parties desire to set forth herein the terms and conditions under which said services shall be furnished.
NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereby agree as follows:
1. SCOPE OF SERVICES
The County shall provide the City with comprehensive fire protection and emergency incident response services, including but not limited to, fire suppression, emergency medical assistance, hazard mitigation, and related public safety functions. In addition, the County shall conduct City Familiarization Training for assigned personnel and assist in the development of pre-incident planning to support effective and coordinated emergency operations within the City. Services shall be delivered in accordance with the terms and conditions set forth in this Agreement.
2. TERM
The term of this Agreement shall be from July 1, 2025, through December 31, 2026.
This Agreement may be terminated without cause by either City or County upon written notice of termination given to the other party at least thirty (30) calendar days in advance of the effective date of termination. Notice of termination shall be personally served or mailed, postage prepaid to the address designated under Section 9 - Notices; or to such other address as may be designated by written notice.
3. COMPENSATION
Forthe Agreement Term, the City agrees to allocate all funding levyed and collected from the Dos Palos Fire Department Tax Measure ("Measure S Special Tax") to pay the County for fire protection and emergency services provided under this Agreement. All payments from the City to the County shall be made exclusively from Measure S Special Tax proceeds, which are designated for fire department expenses, including firefighter staffing costs, within the City of Dos Palos.
4. NO EMPLOYMENT OR AGENCY RELATIONSHIP
This Agreement is a funding agreement only. Nothing in this Agreement shall be construed to create any employment or agency relationship between the parties or their officers, employees, or agents. The fire service personnel for which funding is provided under this Agreement are not employees of the City, and the County shall be responsible for all wages and other employment benefits and is solely responsible for the supervision and management of said employees.
5. INSURANCE
The parties shall maintain, at their own expense, Commercial General Liability Insurance, Automobile Liability insurance, and Workers' Compensation insurance in such forms and amounts sufficient to cover claims arising from the duties and responsibilities under this agreement.
6. INDEMNIFICATION
To the full extent permitted by law, City agrees to indemnify, defend and hold harmless the County, its officers, employees and agents against any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened that may be asserted or claimed by any person, firm or entity arising out of the negligence or willful acts or omissions of the City or its employees, agents, and subcontractors, except claims or liabilities occurring as a result of County's (including County's officers, employees, agents, and subcontractors) negligence or willful acts or omissions. This provision shall not constitute a waiver by the Parties of the requirements of state, federal or local law governing claims or legal actions asserted against public agencies and/or entities. Further, the indemnity obligation contained within this Agreement shall be binding on successors and assigns of the Parties and shall survive termination or expiration of this Agreement.
7. ENTIRE AGREEMENT
This Agreement constitutes the complete and exclusive statement of the understanding between the County and the City with respect to the subject matter addressed herein. No other agreements, understandings, or communications shall be valid or binding on either party unless made in writing and duly executed by authorized representatives of both parties. Any amendments or modifications to this Agreement shall also be in writing and signed by both parties to be effective.
8. RECORDS AND INSPECTIONS
County shall maintain full and accurate records with respect to all matters covered under this Agreement. To the extent permitted by law, City shall have free access at all proper times or until the expiration of four (4) years after the furnishing of services to such records, and the right to examine and audit the same and to make transcripts therefrom, and to inspect all data, documents, proceedings, and activities pertaining to this Agreement.
NOTICES
All notices, requests, demands or other communications under this Agreement shall be in writing. Information for notice to the parties to this Agreement at the time of endorsement of this Agreement is as follows:
County of Merced c/o City of Dos Palos
Merced County Fire Department Attn: City Manager
Attn: Division Chief 2174 Blossom Street
3500 N Apron Ave Dos Palos, CA 93620
Atwater, CA 95301
Any party may change its address or fax number by giving the other party notice of the change in any manner permitted by this Agreement.
Signature page to follow
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as the day and year first hereinabove written.
COUNTY OF MERCED CITY OF DOS PALOS
BOARD OF SUPERVISORS
Joshua M. Pedrozo Katy Reed
Board Chair Mayor
Date Date
APPROVED AS TO LEGAL FORM
MERCED COUNTY COUNSEL
By: _
Rina M. Gonzales
Chief Deputy County Counsel
-
Date
QKI
MEMO
Date: July 10, 2025 Project No.: 250013 /
To: Dwayne Jones, City Manager
From: Garth A. Pecchenino, PE, PLS
Subject: City Project Status
The following will provide a brief report on the status of various projects and items being addressed by QK staff or working with City Staff to provide assistance for the last month.
Water Plant replacement project:
The progression of work since the last Council meeting is as follows:
The Operations Building: The work in the building continues to place the wiring and communication conduits, placement of wall board and installation of electrical control equipment in the administration side of the building. The west side for the building has the piping and placement of pumps in the treatment side of the building. The building is closed in now and work is going on to complete the trim work and placement of doors.
The Chemical Feed/Storage: The placement of tanks and pump equipment is going into the building, plumbing of the chemical feed lines. The roof and side curtain were placed on the building. The electrical wiring is being pulled over to the building.
Site work to place conduit runs and electrical main connection is completed and looking for service from PG&E in the next couple of weeks to have electrical power to the project site.
Slide presentation:
Slide 3 - Operations Building - Interior wall board and finishes going in on Administration side of Building
Slide 4 - Chemical Storage Building - Placement of Tanks and pump feed equipment Slide 5 - Chemical Storage Building - Movement of tanks and lower lift booster pump station Slide 6 - Electrical Service - Inspection of main connection for electrical and conduit runs Phase 2 Construction - Siphon plans and Specification package has been submitted to DWR for review.
The continuation of submittal review and approvals and address RFI's.
Ask again: City Council about dates for a site visit of the WTP.
East Blossom Street - The Contractor has started on the project site with pole holing of utilities and the demolition of the existing roadway and concrete areas. 2816 Park Avenue • Merced, California 95348 • Tel (209) 723-2066 • Fax (559) 733-7821 www.gkinc.com
QK PAGE 2 OF 2
MEMO
Other items:
Have completed the filing for the Drought & Water Conservation data upload to the State Water Board Portal SAFER for last month.
Any changes or updates will be provided at the meeting.
GAP
2816 Park Avenue • Merced, California 95348 • Tel (209) 723-2066 • Fax (559) 733-7821 www.akinc.com