Grass Valley City Council
July 25, 2023

GRASS VALLEY
City Council Regular Meeting, Capital Improvements Authority and Redevelopment "Successor Agency"
Tuesday, July 25, 2023 at 7:00 PM
Council Chambers, Grass Valley City Hall | 125 East Main Street, Grass Valley, California Telephone: (530) 274-4310 – Fax: (530) 274-4399
E-Mail: [email protected] Web Site: www.cityofgrassvalley.com AGENDA
Any person with a disability who requires accommodations to participate in this meeting should telephone the City Clerk’s office at (530)274-4390, at least 48 hours prior to the meeting to make a request for a disability related modification or accommodation.

Mayor Jan Arbuckle, Vice Mayor Hilary Hodge, Councilmember Bob Branstrom, Councilmember Haven Caravelli, Councilmember Tom Ivy

MEETING NOTICE
City Council welcomes you to attend the meetings electronically or in person at the City Hall Council Chambers, located at 125 E. Main St., Grass Valley, CA 95945. Regular Meetings are scheduled at 7:00 p.m. on the 2nd and 4th Tuesday of each month. Your interest is encouraged and appreciated.

This meeting is being broadcast “live” on Comcast Channel 17 by Nevada County Media, on the internet at www.cityofgrassvalley.com, or on the City of Grass Valley YouTube channel at https://www.youtube.com/channel/UCdAaL-uwdN8iTz8bI7SCuPQ.

Members of the public are encouraged to submit public comments via voicemail at (530) 274-4390 and email to [email protected]. Comments will be reviewed and distributed before the meeting if received by 5pm. Comments received after that will be addressed during the item and/or at the end of the meeting. Council will have the option to modify their action on items based on comments received. Action may be taken on any agenda item.

Agenda materials, staff reports, and background information related to regular agenda items are available on the City’s website: www.cityofgrassvalley.com. Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet will be made available on the City of Grass Valley website at www.cityofgrassvalley.com, subject to City staff’s ability to post the documents before the meeting.

Council Chambers are wheelchair accessible and listening devices are available. Other special accommodations may be requested to the City Clerk 72 hours in advance of the meeting by calling (530) 274-4390, we are happy to accommodate.

City of Grass Valley, CA AGENDA July 25, 2023

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL
AGENDA APPROVAL - The City Council reserves the right to hear items in a different order to accomplish business in the most efficient manner.

REPORT OUT OF CLOSED SESSION

INTRODUCTIONS AND PRESENTATIONS

1. Cancellation of August 8, 2023 City Council Meeting
PUBLIC COMMENT - Members of the public are encouraged to submit public comments via voicemail at (530) 274-4390 and email to [email protected]. Comments will be reviewed and distributed before the meeting if received by 5pm. Comments received after 5pm will be addressed during the item and/or at the end of the meeting. Council will have the option to modify their action on items based on comments received. Action may be taken on any agenda item. There is a time limitation of three minutes per person for all emailed, voicemail, or in person comments, and only one type of public comment per person. For any items not on the agenda, and within the jurisdiction or interest of the City, please come to the podium at this time. If you wish to speak regarding a scheduled agenda item, please come to the podium when the item is announced. When recognized, please begin by providing your name and address for the record (optional).

REORGANIZATION RELATED ITEMS
CONSENT ITEMS -All matters listed under the Consent Calendar are to be considered routine by the City Council and/or Grass Valley Redevelopment Agency and will be enacted by one motion in the form listed. There will be no separate discussion of these items unless, before the City Council and/or Grass Valley Redevelopment Agency votes on the motion to adopt, members of the Council and/or Agency, staff or the public request specific items to be removed from the Consent Calendar for separate discussion and action but Council action is required to do so (roll call vote).Unless the Council removes an item from the Consent Calendar for separate discussion, public comments are invited as to the consent calendar as a whole and limited to three minutes per person.

2. Approval of the Regular Meeting Minutes of July 11, 2023.

Recommendation: Council approve minutes as submitted.

3. Local Emergency Proclamation (Winter Storm of February 2023) CEQA: Not a project
Recommendation: To continue the Winter Storm February 24th, 2023 to March 1st, 2023 proclamation declaring a Local State of Emergency

4. Local Emergency Proclamation (Drought Conditions)
CEQA: Not a Project.

Recommendation: Drought Conditions proclamation declaring a Local State of Emergency

5. Police Department Facility Dog

City of Grass Valley, CA AGENDA July 25, 2023
CEQA: Not a Project
Recommendation: Authorize staff to pursue and start a therapy dog program at the Police Department

6. Extension and enhancement to Police Department Automated License Plate Reader (ALPR) technology agreement with FLOCK Safety
CEQA: Not a Project
Recommendation: Authorize the Chief of Police to sign the agreement with Flock Safety

7. Annual Approval of the Consumer Price Index (CPI) Adjustment to the Special Emergency Medical and Fire Response Tax.

CEQA: Not a Project
Recommendation: That Council 1) Approve a rate increase to the Special Emergency Medical and Fire Response Tax of 5.0% based on the December 2022 CPI. 2) Adopt Resolution 2023-47 requesting that the Nevada County Auditor place the adjusted Measure A special tax for 2023/2024 on the tax rolls.

8. 2022 Fueling Station Construction Project – Final Acceptance CEQA: Exempt – Section 15301 “Existing Facilities”
Recommendation: That Council: 1) accept the 2022 Fueling Station Construction Project as complete, 2) authorize the City Engineer to file a Notice of Completion with the County Recorder.

9. 2022/23 Annual Street Rehabilitation Project – Contract Award CEQA: Categorically Exempt – Section 15301 “Existing Facilities” Recommendation: That Council 1) award a contract for the 2022/23 Annual Street Rehabilitation Project to Consolidated Engineering Inc., 2) authorize the Mayor to execute the construction contract, subject to legal review and, 3) authorize the City Engineer to approve construction change orders for up to 10% of the contract amount.

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION OR SEPARATE ACTION AND /

OR ANY ADDED AGENDA ITEMS

PUBLIC HEARING

10. Water and Wastewater User Rates – Amend Fee Schedule CEQA: Not a Project
Recommendation: That Council, 1) hold a public hearing, 2) consider public testimony and a tabulation of protests, and 3) adopt a Resolution amending the City’s Fee Schedule for the maximum adjustments for the City’s Water and Wastewater User Rates.

11. A Public Hearing to discuss Fire Resiliency and Vegetation Management concerns and consider a Resolution No. 2023-49 of the City Council of the City of Grass Valley calling a special election on November 7, 2023, to consider a transactions and use tax CEQA: Not a Project.

City of Grass Valley, CA AGENDA July 25, 2023
Recommendation: That Council 1) conduct a public hearing regarding Fire and Vegetation Management, as well as a possible sales tax; 2) declare a fiscal emergency due to the lack of necessary funding for fire personnel and land management required to combat wildfires and extreme weather conditions as stated in Resolution No. 2023- 49; and adopt Resolution No. 2023-49 of the City Council of the City of Grass Valley calling a special election on November 7, 2023, to consider a transactions and use tax.

ADMINISTRATIVE

BRIEF REPORTS BY COUNCIL MEMBERS

ADJOURN

POSTING NOTICE
This is to certify that the above notice of a meeting of The City Council, scheduled for Tuesday, July 25, 2023 at 7:00 PM was posted at city hall, easily accessible to the public, as of 5:00 p.m. Thursday, July 20, 2023.
________________________
Taylor Day, City Clerk

GRASS VALLEY
City Council Regular Meeting, Capital Improvements Authority and Redevelopment "Successor Agency"
Tuesday, July 11, 2023 at 7:00 PM
Council Chambers, Grass Valley City Hall | 125 East Main Street, Grass Valley, California Telephone: (530) 274-4310 – Fax: (530) 274-4399
E-Mail: [email protected] Web Site: www.cityofgrassvalley.com

MINUTES
Mayor Jan Arbuckle, Vice Mayor Hilary Hodge, Councilmember Bob Branstrom, Councilmember Haven Caravelli, Councilmember Tom Ivy

CALL TO ORDER
Meeting called to order at 7:01PM

PLEDGE OF ALLEGIANCE
Pledge of allegiance led by Mayor Arbuckle.

ROLL CALL

PRESENT
Councilmember Bob Branstrom
Councilmember Haven Caravelli
Councilmember Tom Ivy
Vice Mayor Hilary Hodge
Mayor Jan Arbuckle

AGENDA APPROVAL
Motion made to approve agenda as submitted by Councilmember Branstrom, Seconded by Vice Mayor Hodge.

Voting Yea: Councilmember Branstrom, Councilmember Caravelli, Councilmember Ivy, Vice Mayor Hodge, Mayor Arbuckle

REPORT OUT OF CLOSED SESSION
Nothing to report.

INTRODUCTIONS AND PRESENTATIONS

1. Upcoming Public Hearing on Fire and Vegetation Management CEQA: Not a Project.

Recommendation: This is an informational notice to inform the citizens of Grass Valley that a public hearing will take place during the City Council Meeting on July 25, 2023. The purpose of this hearing is to gather public feedback and guidance from the

Item # 2.

City of Grass Valley, CA MINUTES July 11, 2023
City Council regarding Fire and Vegetation Management, as well as a possible sales tax.

City Manager, Tim Kiser, gave presentation to Council.

Council asked about what the tax would go towards.

PUBLIC COMMENT
In person comment- Robin Galvin-Davies, Jerry Cirino, Rich.

Virtual Comment- Matthew Coulter

ITEMS REMOVED FROM CONSENT CALENDAR FOR DISCUSSION OR SEPARATE ACTION AND /

OR ANY ADDED AGENDA ITEMS

CONSENT ITEMS
No public comments.

Motion made to approve the consent by Councilmember Branstrom, Seconded by Councilmember Caravelli.

Voting Yea: Councilmember Branstrom, Councilmember Caravelli, Councilmember Ivy, Vice Mayor Hodge, Mayor Arbuckle

2. Approval of the Regular Meeting Minutes of June 27, 2023.

Recommendation: Council approve minutes as submitted.

3. Approval of the Special Meeting Minutes of June 29, 2023.

Recommendation: Council approve minutes as submitted.

4. Local Emergency Proclamation (Winter Storm of February 2023) CEQA: Not a project
Recommendation: To continue the Winter Storm February 24th, 2023 to March 1st, 2023 proclamation declaring a Local State of Emergency

5. Local Emergency Proclamation (Drought Conditions)
CEQA: Not a Project.

Recommendation: Drought Conditions proclamation declaring a Local State of Emergency

6. 2023 Sewer Main Replacement Project – Authorization to Award Contract CEQA: Exempt – Section 15301 “Existing Facilities”
Recommendation: That Council: 1) approve the findings that the project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA), 2) authorize the City Engineer to award a construction contract to McIntosh Equipment, 3) authorize the Mayor to execute the construction contract, subject to legal review and, 4) authorize the City Engineer to approve construction change orders for up to 10% of the contract amount.

7. First-Time Homebuyer Loan Extension Policy
CEQA: Not a project.

Item # 2.

City of Grass Valley, CA MINUTES July 11, 2023
Recommendation: That Council approve the proposed First-Time Homebuyer Loan Extension Policy.

REORGANIZATION RELATED ITEMS

PUBLIC HEARING

8. Collection of delinquent sewer and/or water accounts on the Nevada County tax roll CEQA: Not a Project
Recommendation: After holding a public hearing, adopt Resolution 2023-46 requesting that the County of Nevada levy and collect delinquent water and sewer service charges on the tax roll.

City Manager, Tim Kiser, gave presentation to Council.

Motion made to adopt Resolution 2023-46 requesting that the County of Nevada levy and collect delinquent water and sewer service charges on the tax roll by Councilmember Caravelli, Seconded by Vice Mayor Hodge.

Voting Yea: Councilmember Branstrom, Councilmember Caravelli, Councilmember Ivy, Vice Mayor Hodge, Mayor Arbuckle

ADMINISTRATIVE

BRIEF REPORTS BY COUNCIL MEMBERS
Councilmember Branstrom attended a meeting on artificial intelligence, attended the ERC meet and greet, 4th of July parade, Sierra Master Coral Picnic, and the Art Walk on Mill St.

Councilmember Ivy toured the new friendship club facilities and attended the 4th of July parade. Councilmember Caravelli rode in the firetruck at the 4th of July Parade, and attended the Art Walk. Vice Mayor Hodge attended the third of July concert in Penn Valley, the 4th of July parade, and saw a movie. Mayor Arbuckle attended the Music in the Mountains Toy Story, 4th of July Parade, on the town for the Nevada County fire and law enforcement council, mentioned the upcoming car show, will be starting Monday with the Mayor every 4th Monday in the Mayors Conference room from 11AM-1PM starting July 24th.

ADJOURN
Meeting adjourned at 7:31PM.
__________________________ ___________________________
Jan Arbuckle, Mayor Taylor Day, City Clerk
Adopted on: ____________________

Item # 2.

Item # 2.
2  Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance.

For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
 Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road,
Fort Worth, TX 76155.

There is no cost or obligation, and eligibility is based on a case-by-case review for each applicant.

Please contact me via cellphone if you have questions or need more information.

George N. Kostyrko
Public Information Officer
Office of Disaster Recovery and Resilience, Field Operations Center - West U.S. Small Business Administration
Cell Phone 571-455-2729
[email protected]
Home Page | Twitter | Instagram | Facebook | YouTube | LinkedIn | Email Alerts

Item # 2.

Item # 2.

Item # 2.

Item # 2.

Item # 2.

Date: 07/01/2023
U.S. SMALL BUSINESS ADMINISTRATION

FACT SHEET - DISASTER LOANS
CALIFORNIA Declaration #17842 & #17843
(Disaster: CA-00376)
Incident: SEVERE WINTER STORMS, STRAIGHT-LINE WINDS, FLOODING,

LANDSLIDES & MUDSLIDES
occurring: February 21, 2023 & continuing
in the California counties of: Butte, Kern, Madera, Mariposa, Mendocino, Mono, Monterey, Nevada, San Benito, San Bernardino, San Luis Obispo, Santa Cruz, Tulare & Tuolumne; for economic injury only in the contiguous California counties of: Alpine, Calaveras, Colusa, Fresno, Glenn, Humboldt, Inyo, Kings, Lake, Los Angeles, Merced, Orange, Placer, Plumas, Riverside, San Mateo, Santa Barbara, Santa Clara, Sierra, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Ventura & Yuba; for economic injury only in the contiguous Arizona counties of: La Paz & Mohave; and for economic injury only in the contiguous Nevada counties of: Clark, Douglas, Esmeralda, Lyon, Mineral & Washoe
Application Filing Deadlines:

Physical Damage: July 20, 2023 Economic Injury: January 3, 2024 If you are located in a declared disaster area, you may be eligible for financial assistance from the U.S. Small Business Administration (SBA).

What Types of Disaster Loans are Available?
· Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible. · Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
· Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.

What are the Credit Requirements?
· Credit History – Applicants must have a credit history acceptable to SBA. · Repayment – Applicants must show the ability to repay all loans. · Collateral – Collateral is required for physical loss loans over $25,000 and all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.

What are the Interest Rates?
By law, the interest rates depend on whether each applicant has Credit Available Elsewhere. An applicant does not have Credit Available Elsewhere when SBA determines the applicant does not have sufficient funds or other resources, or the ability to borrow from nongovernment sources, to provide for its own disaster recovery. An applicant, which SBA determines to have the ability to provide for his or her own recovery is deemed to have Credit Available Elsewhere. Interest rates are fixed for the term of the loan. The interest rates applicable for this disaster are:

Loan Types No Credit Available
Elsewhere
Credit Available
Elsewhere
Home Loans 2.375% 4.750%
Business Loans 4.000% 8.000%
Non-Profit Organizations 2.375% 2.375%
Economic Injury Loans
Loan Types No Credit Available
Elsewhere
Credit Available
Elsewhere
Businesses & Small Agricultural Cooperatives 4.000% N/A Non-Profit Organizations 2.375% N/A
Amendment #7 Page 14
Item # 2.

Date: 07/01/2023
What are Loan Terms?
The law authorizes loan terms up to a maximum of 30 years. However, the law restricts businesses with credit available elsewhere to a maximum 7-year term. SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay.

What are the Loan Amount Limits?
· Business Loans – The law limits business loans to $2,000,000 for the repair or replacement of real estate, inventories, machinery, equipment and all other physical losses. Subject to this maximum, loan amounts cannot exceed the verified uninsured disaster loss.
· Economic Injury Disaster Loans (EIDL) – The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration.
· Business Loan Ceiling – The $2,000,000 statutory limit for business loans applies to the combination of physical, economic injury, mitigation and refinancing, and applies to all disaster loans to a business and its affiliates for each disaster. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit. · Home Loans – SBA regulations limit home loans to $200,000 for the repair or replacement of real estate and $40,000 to repair or replace personal property. Subject to these maximums, loan amounts cannot exceed the verified uninsured disaster loss.

What Restrictions are there on Loan Eligibility?
· Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible. Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility. However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility. · Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes. Property such as antiques and collections are eligible only to the extent of their functional value. Amounts for landscaping, swimming pools, etc., are limited. · Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans.

Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.

Is There Help with Funding Mitigation Improvements?
If your loan application is approved, you may be eligible for additional funds to cover the cost of improvements that will protect your property against future damage. Examples of improvements include retaining walls, seawalls, sump pumps, etc. Mitigation loan money would be in addition to the amount of the approved loan but may not exceed 20 percent of total amount of physical damage to real property, including leasehold improvements, and personal property as verified by SBA to a maximum of $200,000 for home loans. It is not necessary for the description of improvements and cost estimates to be submitted with the application. SBA approval of the mitigating measures will be required before any loan increase.

Is There Help Available for Refinancing?
· SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant (1) does not have credit available elsewhere, (2) has suffered substantial uncompensated disaster damage (40 percent or more of the value of the property or 50% or more of the value of the structure), and (3) intends to repair the damage. · Businesses – Business owners may be eligible for the refinancing of existing mortgages or liens on real estate, machinery and equipment, up to the amount of the loan for the repair or replacement of real estate, machinery, and equipment. · Homes – Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, up to the amount of the loan for real estate repair or replacement.

What if I Decide to Relocate?
You may use your SBA disaster loan to relocate. The amount of the relocation loan depends on whether you relocate voluntarily or involuntarily. If you are interested in relocation, an SBA representative can provide you with more details on your specific situation.

Are There Insurance Requirements for Loans?
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Amendment #7 Page 15
Item # 2.

Fecha: 1 de julio de 2023
HOJA DE DATOS DE LA AGENCIA FEDERAL DE PEQUEÑOS
NEGOCIOS – PRÉSTAMOS PARA DESASTRES
CALIFORNIA Declaración #17842 y #17843
(Desastre: CA-00376)
Incidente: SEVERAS TORMENTAS INVERNALES, VIENTOS EN LÍNEA

RECTA, INUNDACIONES, DESLIZAMIENTOS DE TIERRA Y LODO
ocurriendo: el 21 de febrero 2023 y continuando
en los condados de Butte, Kern, Madera, Mariposa, Mendocino, Mono, Monterey, Nevada, San Benito, San Bernardino, San Luis Obispo, Santa Cruz, Tulare y Tuolumne, en el estado de California; por daños económicos sólo en los condados contiguos de Alpine, Calaveras, Colusa, Fresno, Glenn, Humboldt, Inyo, Kings, Lake, Los Angeles, Merced, Orange, Placer, Plumas, Riverside, San Mateo, Santa Barbara, Santa Clara, Sierra, Sonoma, Stanislaus, Sutter, Tehama, Trinity, Ventura y Yuba, en el estado de California; por daños económicos sólo en los condados contiguos de La Paz y Mohave, en el estado de Arizona; y por daños económicos sólo en los condados contiguos de Clark, Douglas, Esmeralda, Lyon, Mineral y Washoe, en el estado de Nevada
Fechas Límites Para Solicitar Préstamos:

Daños Físicos: 20 de julio de 2023 Daños Económicos: 3 de enero de 2024 Si usted está ubicado en un área declarada de desastre, usted puede ser elegible para asistencia financiera por la Agencia Federal de Pequeños Negocios (SBA).
¿Qué Tipos de Préstamos de Desastre están Disponible?
· Préstamos de Desastre para Negocios Con Daños Físicos – Préstamos a negocios para reparar o reemplazar propiedad dañada perteneciente al negocio, incluyendo: propiedad inmobiliaria, inventarios, mercaderías, maquinarias y equipos. Negocios de cualquier tamaño son elegibles. Organizaciones privadas sin fines de lucro, tal como organizaciones de caridad, iglesias, universidades privadas, etc. son también elegibles.
· Préstamos de Desastre para Pérdidas Económicas (EIDL) – Préstamos para proveer capital de trabajo para ayudar a pequeños negocios, pequeñas cooperativas agrícolas, pequeños negocios involucrados en acuacultura y la mayoría de organizaciones privadas sin fines de lucro, de todos tamaños. Son préstamos para cubrir las obligaciones ordinarias y necesidades financieras que no pueden ser cubiertas, debido al resultado directo del desastre. Estos préstamos están destinados para la asistencia durante el período de recuperación del desastre.
· Préstamos de Desastre para Hogares – Préstamos para dueños de hogares o inquilinos para reparar o reemplazar la propiedad inmobiliaria y propiedad personal dañada por el desastre, incluyendo automóviles. ¿Cuáles son los Requisitos de Crédito?
· Historial de Crédito – El solicitante deberá tener un historial de crédito aceptable a SBA. · Habilidad de Pago – El solicitante deberá demostrar su habilidad para pagar todos los préstamos. · Colateral – Colateral es requerido para préstamos de pérdidas físicas de más de $25,000 y préstamos para pérdidas económicas de más de $25,000. SBA toma propiedad inmobiliaria como colateral cuando está disponible. SBA no desaprobará un préstamo por falta de colateral, pero requiere que usted ofrezca aquella que esté disponible. ¿Cuáles son las Tasas de Interés?
Por ley, la tasa de interés dependerá si el solicitante tiene Otros Créditos Disponibles. Un solicitante no tiene Otros Créditos Disponibles cuando SBA determina que el solicitante no tiene suficientes fondos u otros recursos, o la habilidad para obtener préstamo de otras agencias no gubernamentales para proveer para su propia recuperación por daños sufridos por el desastre. Aquellos solicitantes los cuales SBA determina que tienen la habilidad para proveer para su propia recuperación, se entiende que tienen Otros Créditos Disponibles. Las tasas de intereses son fijas durante el término del préstamo. Los tipos de interés aplicables para este desastre son:

Tipos de Préstamos Si usted no tiene Otro
Crédito Disponible
Si usted tiene Otro
Crédito Disponible
Préstamos para Hogares 2.375% 4.750%
Préstamos para Negocios 4.000% 8.000%
Préstamos a Organizaciones Sin Fines de Lucro 2.375% 2.375% Daños Económicos
Tipos de Préstamos Si usted no tiene Otro
Crédito Disponible
Si usted tiene Otro
Crédito Disponible
Negocios y Pequeñas Cooperativas Agrícolas 4.000% N/A
Organizaciones Sin Fines Lucro 2.375% N/A
Enmienda #7 Page 16
Item # 2.

Fecha: 1 de julio de 2023
¿Cuáles son los Términos del Préstamo?
La ley autoriza términos de préstamo hasta un máximo de 30 años. Sin embargo, para negocios con Otros Créditos Disponibles la ley limita su término a un máximo de 7 años. SBA establece la cantidad de pago y la madurez del préstamo correspondiente de acuerdo a la habilidad de pago de cada prestatario.
¿Cuáles son los Límites de la Cantidad de Préstamo?
· Préstamos para Negocios – La cantidad de los préstamos son limitadas por ley, hasta $2,000,000 para reparar/reemplazar bienes inmobiliarios, inventarios, maquinarias, equipos y otras pérdidas físicas. Sujeto a este máximo, la cantidad máxima de los préstamos no podrá exceder la cantidad de daños verificados sin seguro. · Préstamos para Daños Económicos (EIDL) – La cantidad de los préstamos por daños económicos son limitadas por ley, hasta $2,000,000 para aliviar el daño económico causado por el desastre. La cantidad actual de cada préstamo es limitada por el daño económico determinado por SBA, menos lo recuperado por seguros de interrupción de negocios y otras fuentes de recuperación hasta el límite administrativo. La asistencia para EIDL está disponible sólo para las entidades y sus dueños que no pueden proveer para su propia recuperación, a través de recursos no gubernamentales, determinado por la U.S. Administración Federal de Pequeños Negocios (SBA). · Límites del Préstamo para Negocios – El límite reglamentado de $2,000,000 es aplicado a préstamos de negocio en combinación de pérdidas físicas, pérdidas económicas, mitigación y/o refinanciamiento, y se aplica a todos los préstamos de desastre para negocios y sus afiliados, por cada desastre. Si el negocio es una fuente mayor de empleos, SBA tiene la autoridad para elevar el límite estatutario de $2,000,000.
· Préstamos para Hogares – Son limitados por regulaciones de SBA a un máximo de $200,000 para reparar/reemplazar propiedad inmobiliaria, y $40,000 para reparar o reemplazar propiedad personal. Sujeto a estos máximos, las cantidades de los préstamos no podrán exceder los daños verificados sin seguro. ¿Qué Restricciones Existen Sobre la Elegibilidad de Préstamo? · Pérdidas Sin Seguro – Sólo pérdidas sin seguro o sin compensación son elegibles. Pagos de seguro que son requeridos para reducir el monto de la hipoteca y no están disponibles para financiar la reparación de daños causados por el desastre no reducirán la elegibilidad. Sin embargo, beneficios de seguro aplicados voluntariamente a la reducción de la hipoteca reducirán la elegibilidad.
· Propiedades que no son Elegibles – Propiedades secundarias, botes para diversión personal, aeroplanos, vehículos recreativos, y propiedades similares no son elegibles, a menos que sean parte de un negocio. Propiedades como antigüedades y colecciones califican hasta el valor máximo de funcionamiento. Cantidades del préstamo para restaurar jardinería, piscinas, etc., son limitadas.
· Incumplimiento – Solicitantes que con anterioridad no han cumplido con sus obligaciones en los préstamos de SBA no son elegibles. Esto incluye prestatarios que no han cumplido con su obligación de mantener seguro contra inundaciones y/o incendio en anteriores préstamos de SBA.

Nota: Los solicitantes de préstamo deberán verificar con las agencias/organizaciones que administran subvenciones u otros programas de asistencia, bajo esta declaración, para determinar si un préstamo de desastre aprobado por SBA podría afectar su elegibilidad. ¿Hay Ayuda para Financiar Mejoras de Mitigación?
Si su solicitud de préstamo es aprobada, usted puede ser elegible para fondos adicionales para cubrir los costos de mejoras para proteger su propiedad de daños futuros. Ejemplos de mejoras incluye; paredes de retención, muralla de contención marítima, etc. El dinero designado para mitigación será adicional a la cantidad del préstamo aprobado, pero no podrá exceder un 20% de la cantidad total de las perdidas físicas y así verificadas por SBA hasta un máximo de $200,000 para préstamos de hogares. No es necesario que la descripción de las mejoras y de los costos estimados sean enviados junto con la solicitud. La aprobación de SBA sobre las mejoras de mitigación será requerida antes de cualquier aumento en la cantidad del préstamo. ¿Hay Ayuda Disponible para Refinanciar?
· SBA puede refinanciar todo o parte de hipotecas previas, siempre que estén registrados debidamente, cuando un solicitante (1) no califica para obtener fondos por otros medios, (2) ha sufrido daños de desastre sustanciales no compensados (del 40% o más del valor de la propiedad, o del 50% o más del valor estructural), y (3) hay intención de reparar daños. · Negocios – Dueños de negocios pueden ser elegibles para refinanciar hipotecas en la propiedad inmobiliaria, maquinarias y equipos, hasta la cantidad del préstamo para reparar o reemplazar la propiedad inmobiliaria, maquinarias y equipos. · Hogares – Dueños de hogares pueden ser elegibles para el refinanciamiento de hipotecas existentes hasta la cantidad del préstamo para reparar o reemplazar la propiedad inmobiliaria. ¿Qué si Decido Reubicarme?
Usted puede utilizar su préstamo de desastre de SBA para reubicarse. La cantidad del préstamo de reubicación depende de si usted se reubicara voluntariamente o involuntariamente. Si usted está interesado en reubicarse, un representante de SBA puede proveerle más detalles sobre su situación específica.
¿Hay Algún Requerimiento de Seguro para los Préstamos?
Para la protección de cada prestatario y la Agencia, SBA requiere a los prestatarios el obtener y mantener un seguro apropiado. Por ley, los prestatarios cuya propiedad dañada o de colateral están localizadas en un área especial de inundación, deben comprar y mantener seguros de inundación. SBA requiere que la cobertura de seguro contra inundaciones sea el valor menor de: 1) el total del préstamo por desastre, 2) el valor asegurable de la propiedad, o 3) el seguro máximo disponible.

Los solicitantes pueden solicitar en línea, recibir información adicional sobre asistencia en casos de desastre y descargar aplicaciones https://disasterloanassistance.sba.gov/. Los solicitantes también pueden llamar al centro de servicio al cliente de SBA al (800) 659-2955 o enviar un correo electrónico a [email protected] para más información sobre asistencia para desastres de SBA. Para las personas con discapacidades auditivas o del habla, favor de marcar 7-1-1 para tener acceso al servicio de retransmisión de telecomunicaciones.

Las solicitudes completas deben enviarse por correo a U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Enmienda #7 Page 17
Item # 2.

Item # 2.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Local Emergency Proclamation (Winter Storm of February 2023) CEQA: Not a project
Recommendation: To continue the Winter Storm February 24th, 2023 to March 1st, 2023 proclamation declaring a Local State of Emergency
Prepared by: Timothy M. Kiser, City Manager
Council Meeting Date: 7/25/2023 Date Prepared: 7/18/2023 Agenda: Consent
Background Information: Due to conditions of extreme peril to the safety of persons and property have arisen within the City of Grass Valley, caused by the winter storm February 24th, 2023 to March 1st, 2023 which has cut power, downed trees, blocked roads and created other hazards to health and human safety commencing at which time the City Council of the City of Grass Valley was not in session. The city found it necessary to proclaim the existence of a local emergency throughout the city.

On March 2nd, Tim Kiser, the Emergency Services Director, proclaimed an existence of a local emergency. On March 8th, 2023, at a special City Council Meeting council adopted Resolution 2023-07 confirming the Emergency Services Director’s proclamation of a local emergency.

Council Goals/Objectives: This resolution executes portions of work tasks towards achieving/maintaining Strategic Plan – Public Safety. The City of Grass Valley is devoted to providing a safe Place to Live, Work and Play.

Fiscal Impact: The City will be requesting reimbursement for repair costs from the California Office of Emergency Services. If approved, costs would be reimbursable around 75% and sufficient General Funds exist to cover any shortfall.

Funds Available: N/A Account #: N/A
Reviewed by: __ City Manager

Item # 3.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Local Emergency Proclamation (Drought Conditions) CEQA: Not a Project.

Recommendation: Drought Conditions proclamation declaring a Local State of Emergency
Prepared by: Timothy M. Kiser, City Manager
Council Meeting Date: 7/25/2023 Date Prepared: 7/18/2023 Agenda: Consent
Background Information: On May 10, 2021, Governor Newsom modified a State of Emergency Proclamation that declared that a State of Emergency to exist in California due to severe drought conditions to include 41 counties, including Nevada County. The Proclamation directed state agencies to partner with local water suppliers to promote conservation through the Save Our Water campaign, a critical resource used by Californians during the 2012-2016 drought. Some municipalities have already adopted mandatory local water-saving requirements, and many more have called for voluntary water use reductions.

Nevada Irrigation District (NID) declared a drought emergency throughout the District’s service area on April 28, 2021, which includes portions of the City of Grass Valley, and requested that customers conserve 10 percent of their normal water usage. Both NID and Nevada City have now mandated at least 20% conservation requirements.

On June 22, 2021, City Council approved Resolutions No. 2021-41 declaring a local emergency due to drought conditions and No.2021-42 mandating water conservation.

All treated Water Customers are required to reduce water use by 20%.

Council Goals/Objectives: This resolution executes portions of work tasks towards achieving/maintaining Strategic Plan – Water and Wastewater Systems and Underground Infrastructure. The City of Grass Valley is devoted to providing a safe Place to Live, Work and Play.

Fiscal Impact: The Fiscal Impact to the Water Fund should be minor, but if the drought continues for several years the impact could be more significant.

Funds Available: N/A Account #: N/A
Reviewed by: __ City Manager

Item # 4.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Police Department Facility Dog
CEQA: Not a Project
Recommendation: Authorize staff to pursue and start a therapy dog program at the Police Department
Prepared by: Alexander K. Gammelgard, Chief of Police
Council Meeting Date: 07/25/2023 Date Prepared: 07/17/2023 Agenda: Consent
Background Information:

In late 2022, the City adopted a resolution (2022-87) and associated policy related to employee handlers of peer support/facility dogs. The use of facility, therapy, and support dogs has grown across industries, and law enforcement has seen a huge increase in their use.

Facility and therapy dogs provide a number of benefits to their agencies, co-workers, and the public. Facility and therapy dogs are trained in obedience and specialty cues and are used in a work setting under the direction of a handler. Facility dogs are trained to motivate, inspire, and enhance the lives of their clients by reducing anxiety and easing the potential effects of traumatic events. A facility dog, with appropriate training may take on additional roles in the public as a therapy dog. At the police department, a therapy dog would be available for all types of incidents, from public engagement to trauma-informed response (i.e. death notifications, child forensic interviews, etc). The police officer handler would continue to perform their core job functions, brining with him/her the benefits of a therapy dog. The addition of such a dog at the police department would complement other dog programs in the City as a whole, demonstrating our commitment to employee wellness and service to the public.

The police department has been researching the feasibility of such a program for years, and through many conversations has only heard positive things about the implementation within a police department. Following on the excitement created by City staff with Millie (Bernese Mountain Dog/City Hall) and Gus (Labrador Retriever/Fire Department), the police department is seeking acquisition and placement of a dog with a Police Department staff member.

Item # 5.

The police department has obtained commitment from the Rüdiger Foundation for assistance in startup funding, including acquisition, equipment, and training. The Police Department, through its existing budgeted would absorb any on-going ancillary costs, pursuant to the resolution/policy mentioned above. Additionally, the police department will adopt a police-specific policy based on best practices in the law enforcement profession.

Council Goals/Objectives: The execution of this action attempts to achieve Strategic Goal #1 – Exceptional Public Safety
Fiscal Impact: Acquisition, outfitting, and training to be donated by the Rüdiger Foundation. Adequate funding is allocated and appropriated in the FY23/24 Police Department Budget for other costs, including vehicle safety equipment.

Funds Available: Yes Account #: 100-201
Reviewed by: Tim Kiser, City Manager

Item # 5.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Extension and enhancement to Police Department Automated License Plate Reader (ALPR) technology agreement with FLOCK Safety
CEQA: Not a Project
Recommendation: Authorize the Chief of Police to sign the agreement with Flock Safety Prepared by: Alexander K. Gammelgard, Chief of Police
Council Meeting Date: 07/25/2023 Date Prepared: 07/11/2023 Agenda: Consent
Background Information:

In September of 2021 the Police Department, after City Council approval, entered into an agreement with FLOCK Safety for the deployment of 18 fixed point Automated License Plate Readers that were placed at strategic “ingress locations” throughout the City. The devices became active in January of 2022.

These locations were prioritized by police staff based upon known avenues of frequent use. These locations provide excellent effectiveness in capturing ALPR data from a public right of way. The Flock Raven devices utilize technology to deduce license plate data, which is then compared with state/national law enforcement Criminal Justice Information Services (CJIS) databases to determine if a vehicle is stolen, associated to a missing person, or wanted as evidence in a serious felony investigation. If a match is made, the FLOCK Safety system immediately provides a mobile notification alert to the officer’s in-car computer or handheld device with the vehicle information and last captured ALPR location. The system captures still images only and no streaming video.

Local plates of interest can also be loaded into the system, for example, a vehicle suspected of involvement in a hit and run. The data is retained for 30 days, after which time it is deleted.

ALPR systems have proven themselves time and time again in their effectiveness to solve and deter crime. Below are a few datapoints from the past 18 months that demonstrate their effectiveness here in Grass Valley:
 66 stolen vehicle recoveries, of which 50% were from out of the area  46 identified vehicles were associated with felony criminal activity such as domestic violence, false imprisonment, and criminal threats. Other criminal cases solved with ALPR fixed point readers in Grass Valley include:
o 5 incidents related to robberies

Item # 6.
o 1 related to an attempted homicide case
o 3 related to homicide cases
 An interstate kidnapping suspect’s vehicle was identified based on ALPR reads, and data was used in coordination with the FBI for the suspects apprehension and travel patterns
These cases are just a portion of the investigative use this technology provides.

Recently, FLOCK Safety announced an increase in their pricing model. Existing cameras were contracted at a rate of $2,500 per device, per year. The new pricing model, beginning this month, was slated to raise prices to $3,000 per device, per year.

However, FLOCK Safety offered the ability to renew existing contracts and/or new devices, at a price of $2,500 for any newly renewed contract terms, up to five years.

As a result, staff determined that enhancing coverage and renewing our FLOCK Safety contract would further the crime reduction and detection mission of the Police Department and make fiscal sense. The Police Department has identified 7 additional locations which are current “holes in coverage” for ALPR readers. These 7 devices are to be contracted at the special pricing of $2,500 per device. While adding these devices, the full contract will be renewed for a 5-year term, with all 25 cameras at the better pricing.

The updated contract is attached for review. By executing this agreement, it preserves the yearly cost of $2,500 per device for all new and existing devices for the duration of the new contract. This reduced pricing would save $12,500 per year over the term of the contract.

Council Goals/Objectives: The execution of this action attempts to achieve Strategic Goal #1 – Exceptional Public Safety
Fiscal Impact: Funding is allocated and appropriated in the FY23/24 Police Department Budget for the full contract amount.

Funds Available: Yes Account #: 100-201
Reviewed by: Tim Kiser, City Manager

Item # 6.

Flock Safety + CA - Grass Valley PD
______________
Flock Group Inc.
1170 Howell Mill Rd, Suite 210
Atlanta, GA 30318
______________
MAIN CONTACT:

Caroline Fraher
[email protected]
3108443659

Item # 6.

Company Overview
At Flock Safety, technology unites law enforcement and the communities they serve to eliminate crime and shape a safer future , together. We created the first public safety operating system to enable neighborhoods, schools, businesses, and law enforcement to work together to collect visual, audio, and situational evidence across an entire city to solve and prevent crime.

Our connected platform, comprised of License Plate Recognition (LPR), live video, audio detection, and a suite of integrations (AVL, CAD & more), alerts law enforcement when an incident occurs and turns unbiased data into objective answers that increase case clearance, maximize resources, and reduce crime -- all without compromising transparency or human privacy.

Join thousands of agencies reducing crime with Flock Safety’s public safety operating system 2000+ 120 1B+ <60%*
communities with privatepublic partnershipsincident alerts / minute 1B+ vehicles detected / month
<60% local crime reduction
in Flock cities
*According to a 2019 study conducted by Cobb County Police Department Introduction
Layer Intelligence to Solve More Crime
The pathway to a safer future looks different for every community. As such, this proposal presents a combination of products that specifically addresses your public safety needs, geographical layout, sworn officer count, and budget. These components make up your custom public safety operating system, a connected device network and software platform designed to transform real-time data into a panoramic view of your jurisdiction and help you zero in on the leads that solve more cases, prevent future crimes, and foster trust in the communities you serve.

Software Platform
Flock Safety's out-of-box software platform collects and makes sense of visual, audio, and situational evidence across your entire network of devices.

Item # 6.

Out-of-Box Software Features
Simplified Search Get a complete view of all activity tied to one vehicle in your network of privately and publicly owned cameras.

The user-friendly search experience allows officers to filter hours of footage in seconds based on time, location, and detailed vehicle criteria using patented Vehicle Fingerprint ™ technology. Search filters include:
● Vehicle make
● Body type
● Color
● License plates
○ Partial tags
○ Missing tags
○ Temporary tags
○ State recognition
● Decals
● Bumper stickers
● Back racks
● Top racks
National and Local Sharing Access 1B+ additional plate reads each month without purchasing more cameras. Solve cross-jurisdiction crimes by opting into Flock Safety's sharing networks, including one-toone, national, and statewide search networks. Users can also receive alerts from several external LPR databases:

California SVS
FDLE
FL Expired Licenses
FL Expired Tags
FL Sanctioned Drivers
FL Sex Offenders
Georgia DOR
IL SOS
Illinois Leads
NCIC
NCMEC Amber Alert
REJIS
CCIC
FBI
Real-time Alerts Receive SMS, email, and in-app notifications for custom Hot Lists, NCIC wanted lists, AMBER alerts, Silver alerts, Vehicle Fingerprint matches, and more.

Interactive ESRI Map View your AVL, CAD, traffic, and LPR alerts alongside live onscene video from a single interactive map for a birdseye view of activity in your jurisdiction.

Vehicle Location Analysis Visualize sequential Hot List alerts and the direction of travel to guide officers to find suspect vehicles faster.

Item # 6.

Out-of-Box Software Features (Continued)
Transparency Portal Establish community trust with a public-facing dashboard that shares policies, usage, and public safety outcomes related to your policing technology.

Insights Dashboard Access at-a-glance reporting to easily prove ROI, discover crime and traffic patterns and prioritize changes to your public safety strategy by using data to determine the most significant impact.

Native MDT Application Download FlockOS to your MDTs to ensure officers never miss a Hot List alert while out on patrol.

Hot List Attachments
Attach relevant information to Custom Hot List alerts. Give simple, digestible context to Dispatchers and Patrol Officers responding to Hot List alerts so they can act confidently and drive better outcomes. When you create a custom Hot List Alert, add case notes, photos, reports, and other relevant case information.

Single Sign On (SSO) Increase your login speed and information security with Okta or Azure Single Sign On (SSO). Quickly access critical
information you need to do your job by eliminating the need for password resets and steps in the log-in process.

Item # 6.

License Plate Recognition
The Flock Safety Falcon® LPR camera uses Vehicle Fingerprint™ technology to transform hours of footage into actionable evidence, even when a license plate isn't visible, and sends Hot List alerts to law enforcement users when a suspect vehicle is detected. The Falcon has fixed and location-flexible deployment options with 30% more accurate reads than leading LPR.* *Results from the 2019 side-by-side comparison test conducted by LA County Sheriff's Department Flock Safety Falcon®LPR Camera Flock Safety Falcon® Flex Flock Safety Falcon® LR Fixed, infrastructure-free LPR camera
designed for permanent placement.
√ 1 Standard LPR Camera
√ Unlimited LTE data service + Flock OS
platform licenses
√ 1 DOT breakaway pole
√ Dual solar panels
√ Permitting, installation, and ongoing
maintenance
Location-flexible LPR camera designed
for fast, easy self-installation, which is
ideal for your ever-changing
investigative needs.
√ 1 LPR Camera
√ Unlimited LTE data service + software
licenses
√ 1 portable mount with varying-sized
band clamps
√ 1 Charger for internal battery
√ 1 hardshell carrying case
Long-range, high-speed LPR camera
that captures license plates and Vehicle
Fingerprint data for increasing
investigative leads on high-volume
roadways like highways and interstates.
√ 1 Long-Rage LPR Camera
√ Computing device in protective poly
case
√ AC Power
√ Permitting, installation, and ongoing
maintenance

Item # 6.

Your Flock Safety Team
Flock Safety is more than a technology vendor; we are a partner in your mission to build a safer future. We work with thousands of law enforcement agencies across the US to build stronger, safer communities that celebrate the hard work of those who serve and protect. We don’t disappear after contracts are signed; we pride ourselves on becoming an extension of your hard-working team as part of our subscription service.

Implementation Meet with a Solutions Consultant (former LEO) to build a deployment plan based on your needs. Our Permitting Team and Installation Technicians will work to get your device network approved, installed, and activated.

User Training + Support Your designated Customer Success Manager will help train your power users and ensure you maximize the platform,
while our customer support team will assist with needs as they arise.

Maintenance We proactively monitor the health of your device network. If we detect that a device is offline, a full-time technician will service your device for no extra charge.

Note: Ongoing maintenance does not apply to Falcon Flex devices.

Public Relations Government Affairs
Get support educating your stakeholders, including city councils and other governing bodies.

Media Relations
Share crimes solved in the local media with the help of our Public Relations team.

Item # 6.

EXHIBIT A

ORDER FORM
Customer: CA - Grass Valley PD Initial Term: 60 Months
Legal Entity Name: CA - Grass Valley PD Renewal Term: 24 Months Accounts Payable Email: [email protected] Payment Terms: Net 30 Address: 129 S Auburn St Grass Valley, California 95945 Billing Frequency: Annual Plan - First Year Invoiced at Signing.

Retention Period: 30 Days
Hardware and Software Products
Annual recurring amounts over subscription term
Item Cost Quantity Total
Flock Safety Platform $62,500.00
Flock Safety Flock OS
FlockOS ™ Included 1 Included
Flock Safety LPR Products
Flock Safety Falcon ® Included 25 Included
Professional Services and One Time Purchases
Item Cost Quantity Total
One Time Fees
Flock Safety Professional Services
Professional Services - Standard Implementation Fee $650.00 6 $3,900.00 Professional Services - Existing Infrastructure
Implementation Fee $150.00 1 $150.00
Subtotal Year 1: $66,550.00
Annual Recurring Subtotal: $62,500.00
Discounts: $62,500.00
Estimated Tax: $0.00
Contract Total: $316,550.00
Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

Special Terms:

In the event this Agreement is not approved by City Council, Agency will have the option to terminate this Agreement within t hirty (30) days of execution at no fee or penalty.

Item # 6.

Billing Schedule
Billing Schedule Amount (USD)
Year 1
At Contract Signing $66,550.00
Annual Recurring after Year 1 $62,500.00
Contract Total $316,550.00
*Tax not included
Discounts
Discounts Applied Amount (USD)
Flock Safety Platform $62,500.00
Flock Safety Add-ons $0.00
Flock Safety Professional Services $0.00

Item # 6.

Product and Services Description
Flock Safety Platform Items Product Description Terms
Flock Safety Falcon ®
An infrastructure-free license plate reader camera that utilizes Vehicle Fingerprint® technology to capture vehicular attributes.

The Term shall commence upon first installation and validation of Flock Hardware.

O ne-Time Fees Service Description
Installation on existing
infrastructure
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.

Professional Services - Standard
Implementation Fee
One-time Professional Services engagement. Includes site and safety assessment, camera setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief.

Professional Services -
Advanced Implementation Fee
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.

FlockOS Features & Description
Package: Essentials
FlockOS Features Description
Community Cameras (Full Access) Access to all privately owned Flock devices within your jurisdiction that have been shared with you.

Unlimited Users Unlimited users for FlockOS
State Network (LP Lookup Only) Allows agencies to look up license plates on all cameras opted in to the statewide Flock network.

Nationwide Network (LP Lookup Only) Allows agencies to look up license plates on all cameras opted in to the nationwide Flock network.

Time & Location Based Search Search full, partial, and temporary plates by time at particular device locations License Plate Lookup Look up specific license plate location history captured on Flock devices Vehicle Fingerprint Search Search footage using Vehicle Fingerprint™ technology. Access vehicle type, make, color, license plate state, missing / covered plates, and other unique features like bumper stickers, decals, and roof racks.

Flock Insights/Analytics page Reporting tool to help administrators manage their LPR program with device performance data, user and network audits, plate read reports, hot list alert reports, event logs, and outcome reports.

ESRI Based Map Interface
Flock Safety’s maps are powered by ESRI, which offers the ability for 3D visualization, viewing of floor plans, and layering of external GIS data, such as City infrastructure (i.e., public facilities, transit systems, utilities), Boundary mapping (i.e., precincts, county lines, beat maps), and Interior floor plans (i.e., hospitals, corporate campuses, universities)
Real-Time NCIC Alerts on Flock ALPR Cameras Alert sent when a vehicle entered into the NCIC crime database passes by a Flock camera Unlimited Custom Hot Lists Ability to add a suspect’s license plate to a custom list and get alerted when it passes by a Flock camera Direct Share - Surrounding Jurisdiction (Full Access) Access to all Flock devices owned by law enforcement that have been directly shared with you. Have ability to search by vehicle fingerprint, receive hot list alerts, and view devices on the map.

Item # 6.

By executing this Order Form, Customer represents and warrants that it has read and agrees all of the terms and conditions contained in the Terms of Service located at https://www.flocksafety.com/legal/terms-and-conditions / L1/ The Parties have executed this Agreement as of the dates set forth below.

FLOCK GROUP, INC. Customer: CA - Grass Valley PD
By:
\FSSignature2\
By:
\FSSignature1\
Name:
\FSFullname2\
Name:
\FSFullname1\
Title:
\FSTitle2\
Title:
\FSTitle1\
Date:
\FSDateSigned2\
Date:
\FSDateSigned1\
PO Number:

Item # 6.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Annual Approval of the Consumer Price Index (CPI) Adjustment to the Special Emergency Medical and Fire Response Tax.

CEQA: Not a Project
Recommendation: That Council 1) Approve a rate increase to the Special Emergency Medical and Fire Response Tax of 5.0% based on the December 2022 CPI. 2) Adopt Resolution 2023-47 requesting that the Nevada County Auditor place the adjusted Measure A special tax for 2023/2024 on the tax rolls.

Prepared by: Mark Buttron- Fire Chief
Council Meeting Date: 07/25/2023 Date Prepared: 07/17/2023 Agenda: Consent
Background Information: In June of 1997 the voters of the City of Grass Valley approved the Special Emergency Medical and Fire Response Tax (Measure A) to fund three additional firefighters. The voter approval contained a provision allowing for an annual inflation adjustment to the special tax based upon the CPI-All U.S. Cities for the prior calendar year, not to exceed 5%. That adjustment is necessary in order to maintain ongoing funding for the three firefighters. The CPI for the year ending December 2022 was 6.5%.

The 2023/2024 Special Emergency Medical and Fire Response Tax with the December 2022 CPI applied are as follows:

Item # 7.

Council Goals/Objectives: Exceptional Public Safety consistent with the City of Grass Valley Strategic Plan
Fiscal Impact: N/A
Funds Available: N/A Account #:

Reviewed by:

Attachments: Resolution 2023-47

Item # 7.

RESOLUTION NO. 2023-47

RESOLUTION REQUESTING THE COUNTY AUDITOR TO PLACE THE CURRENT

SPECIAL EMERGENCY MEDICAL AND FIRE RESPONSE TAX ON THE PROPERTY TAX ROLL FOR FISCAL YEAR 2023-2024
WHEREAS, on March 11, 1997, the City Council adopted Resolution No. 97-22, calling for a Special Municipal Election to be held in the City of Grass Valley on June 3, 1997 for the purpose of submitting to the qualified voters of the City the issue as to whether to impose a special emergency medical and fire response tax (Measure A); and WHEREAS, a Special Election was held in the County of Nevada for the City of Grass Valley on the 3rd day of June 1997, in accordance with the provisions of the City Charter, California Elections Code, and other State Laws concerning election matters; and WHEREAS, the County Clerk did conduct said election, canvass the returns and certify the Statement of Results of the Election on June 5, 1997; and WHEREAS, Proposition 218 requires that all special taxes receive at least 66-2/3rds vote and Measure A, the Emergency Medical and Fire Response Tax passed with a 78.3% approval; and
WHEREAS, Measure A includes a provision for an automatic cost of living allowance not to exceed 5% per year; and
WHEREAS, the December 2022 cost of living allowance as determined by the CPI – All U.S. Cities Index showed a 6.5% annual increase; and
WHEREAS, the cost of living allowance increase is necessary to continue to fund the firefighters as provided for in the special emergency response tax; and WHEREAS, the total CPI adjustment for FY 2023 – 2024 Measure A special tax is 6.5%.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Grass Valley, as follows:

1. That the above recitals are true and correct.

2. The new special tax rates will now be:

Item # 7.

3. The City Council hereby requests that the County Auditor place the Measure A special tax for 2023-24 on the tax roll.

4. The City Clerk is hereby requested to forward a copy of this resolution to the County Auditor along with the information necessary for placement on the tax roll.

ADOPTED as a Resolution of the Council of the City of Grass Valley at a meeting thereof held on 25th day of July 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINING:
_________________________________
Jan Arbuckle, Mayor
ATTEST: _________________________________
Taylor Day, City Clerk
APPROVED AS TO FORM: _________________________________
Michael Colantuono, City Attorney

Item # 7.

City of Grass Valley
City Council
Agenda Action Sheet
Title: 2022 Fueling Station Construction Project – Final Acceptance CEQA: Exempt – Section 15301 “Existing Facilities”
Recommendation: That Council: 1) accept the 2022 Fueling Station Construction Project as complete, 2) authorize the City Engineer to file a Notice of Completion with the County Recorder.

Prepared by: Bjorn P. Jones, PE, City Engineer
Council Meeting Date: 07/25/2023 Date Prepared: 07/19/2023 Agenda: Consent
Background Information: On June 26, 2022, Council authorized the award of a contract for the 2022 Fueling Station Construction Project to GEMS Environmental Management Services in the amount of $448,342.34. The project involved the construction of a fueling dispensing system and gasoline and diesel storage tanks at the City’s new corporation yard at 530 Freeman Lane.

A total of three contract change orders were authorized for the project. All the work has now been completed by the contractor with a final project cost of $387,998.05.

The Engineering Division has field accepted the work and the contractor has provided the City with a guarantee of work for a period of one year following the date of acceptance of the project. Upon Council’s acceptance, Staff will file a Notice of Completion with the County Recorder’s Office. If no Stop Notices are received by the City after a period of thirty-five (35) days from the filing date of the Notice, all appropriate bonds will be released to the contractor.

Council Goals/Objectives: The 2022 Fueling Station Construction Project executes portions of work tasks towards achieving/maintaining Strategic Plan Goal #5 – High Performance Government & Quality Service and Goal #6 – Public Safety.

Fiscal Impact: The project was partially funded with a $230,000 Cal OES grant and fully funded in 2022/23 fiscal year Capital Improvements Program budget.

Funds Available: Yes Account #: 300-406-61390
Reviewed by: _____ City Manager

Item # 8.

H:\DESMGMNT\20-04 Cal OES PSPS Grant Projects\200 Project Approval\240 Project Approval (CC)\Notice Completion.docx RECORDING REQUESTED BY and
WHEN RECORDED MAIL TO:

ENGINEERING DIVISION

CITY OF GRASS VALLEY
125 East Main Street
Grass Valley, CA 95945
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

1. That the undersigned is OWNER or agent of the OWNER of the interest or estate stated below in the property hereinafter described.

2. The FULL NAME of the OWNER is the City of Grass Valley.

3. The FULL ADDRESS of the OWNER is 125 East Main Street, Grass Valley, CA 95945.

4. The nature of the INTEREST or ESTATE of the undersigned is: FEE.

5. A work of improvement on the property hereinafter described was COMPLETED: June 1, 2023.

6. The work of improvement completed is described as follows: Fueling Station

7. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: GEMS Environmental Management Services.

8. The street address of said property is: 530 Freeman Lane.

9. The property on which said work of improvement was completed is in the City of Grass Valley, County of Nevada, State of California and is described as follows: Fueling Station. ______City of Grass Valley________
Owner
by: _____________________________
Bjorn Jones, City Engineer
“I certify under penalty of perjury that the foregoing is true and correct.” _________________________________________ __________________________________ (Date and Place) (Signature)

Item # 8.

City of Grass Valley
City Council
Agenda Action Sheet
Title: 2022/23 Annual Street Rehabilitation Project – Contract Award CEQA: Categorically Exempt – Section 15301 “Existing Facilities” Recommendation: That Council 1) award a contract for the 2022/23 Annual Street Rehabilitation Project to Consolidated Engineering Inc., 2) authorize the Mayor to execute the construction contract, subject to legal review and, 3) authorize the City Engineer to approve construction change orders for up to 10% of the contract amount.

Prepared by: Bjorn P. Jones, PE, City Engineer
Council Meeting Date: 07/25/2023 Date Prepared: 07/19/2023 Agenda: Consent
Background Information: The 2022/23 Annual Street Rehabilitation Project involves resurfacing of the following residential streets; Lucas Avenue, Miners Trail, French Street, and portions of Clark Street, Clipper Lane, Wiley Lane, Fiddick Lane, and Neville Way. Project work includes concrete construction, asphalt concrete pavement removal, replacement and overlay, utility adjustments, and pavement striping and marking.

Bids were opened on July 6, 2023 and three bids were received. A bid summary is attached.

Staff reviewed the low bid of $625,970 submitted by Consolidated Engineering Inc. and determined the bid to be complete and responsive.

Staff recommends that Council award the construction contract to Consolidated Engineering Inc., in the amount of $625,970; authorize the Mayor to execute the construction contract, subject to legal review; and authorize the City Engineer to approve construction change orders up to 10% of the contract amount.

Council Goals/Objectives: The 2022/23 Annual Street Rehabilitation Project executes portions of work tasks towards achieving/maintaining Strategic Plan Goal #2 – Transportation.

Fiscal Impact: The 2022/23 Annual Street Rehabilitation Project is fully funded in the 23-24 FY CIP Budget, funded with a combination of Road Maintenance and Rehabilitation (RMRA), Regional Surface Transportation Program (RSTP) and Gas Tax funds.

Funds Available: Yes Account #: 300-406-61330
Reviewed by: _____ City Manager

Item # 9.

H:\DESMGMNT\Annual Street Rehab (6133)\23-02 2023 Annual Street Rehab\700 Construction\710 Bid Docs\Bid Summary.docx 2023 STREET REHAB PROJECT
PROJECT #23-02

BID SUMMARY
Date: 7/6/2023 ; 3:30 p.m. Engineer’s Estimate:
660,000$
BIDDER DATE/TIME REC’VD AMOUNT
B & M Builders 7/6/2023
3:30 $753,330
Consolidated Engineering Inc.
7/6/2023
3:35 $625,970
All Phase Construction Inc.
7/6/2023
3:40 $759,389
* Apparent Low Bidder

Item # 9.

City of Grass Valley
City Council
Agenda Action Sheet
Title: Water and Wastewater User Rates – Amend Fee Schedule CEQA: Not a Project
Recommendation: That Council, 1) hold a public hearing, 2) consider public testimony and a tabulation of protests, and 3) adopt a Resolution amending the City’s Fee Schedule for the maximum adjustments for the City’s Water and Wastewater User Rates.

Prepared by: Bjorn P. Jones, PE, City Engineer
Council Meeting Date: 7/25/2023 Date Prepared: 7/19/2023 Agenda: Public Hearing
Background Information: In September 2021, the City entered into a professional services agreement with NBS for the development of a Water and Sewer Rate Study. City Water and Wastewater user rates were last adjusted in 2012 and have remained unchanged since this time through a period of significant inflation. In order to ensure financial stability of the City’s Water and Wastewater Enterprise Funds, NBS was tasked with evaluating the rate structure and establishing proposed rates and scheduled adjustments.

On May 9, 2023, City Staff and the NBS consultant team presented to Council a comprehensive overview of the Rate study process, including the attached draft “Water & Wastewater Rate Studies” report. NBS has recommended user rate adjustments necessary to fund needed operating and maintenance costs, eliminate annual budget deficits, pay for critical repairs and replacements to the utility infrastructure, and comply with statemandated environmental permit requirements.

A summary of the proposed rate adjustments is as follows:

Water Rates
Water rate adjustments are proposed to steadily phase in through a series of rate adjustments over the next five years to bring rates in line with funding needs. Water bills include a fixed charge based on meter size plus a quantity charge per 1,000 gallons of metered water use. Some sizes see an initial increase in fixed charges, others an initial decrease in rates, followed by phased increases in the fixed charges over subsequent years.

The fee schedule table below presented in the NBS rate study report shows the proposed maximum rates proposed for adoption. For reference a typical residential customer with a 5/8” meter, using 7,000 gallons of water in a month, will see an increase in their water utility bill from a current total of $52.25 to a proposed $59.25 in the first year.

Item # 10.

Wastewater Rates
Wastewater rates are proposed to similarly phase in through a series of adjustments over the next five years in an effort to match rates most accurately with funding requirements; as shown in the proposed fee schedule table below. City residential wastewater bills are billed a flat fixed rate similar to most agencies in California. The existing tiered rate structure is proposed to be maintained which charges reduced rates for apartments and mobile homes, which tend to discharge less wastewater than single family homes.

Commercial/ Non-residential wastewater bills include a fixed monthly charge, plus a quantity charge based on water consumption. As shown, a typical residential customer (single family) will see a decrease in their monthly sewer utility bill from a current total of $55.00 to a proposed $52.76. Single family rates are not increased above their current level until year four, and multi-family rates remain below their current level through the entire proposed adjustment schedule.

FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Fixed Meter Charges
Monthly Fixed Service Charges:
5/8 inch $26.00 $30.06 $32.16 $34.41 $36.82 $39.40
3/4 inch $39.00 $37.09 $39.69 $42.47 $45.44 $48.62
1 inch $65.00 $51.14 $54.72 $58.55 $62.65 $67.04

1.5 inch $130.00 $86.29 $92.33 $98.79 $105.71 $113.11
2 inch $208.00 $128.46 $137.45 $147.07 $157.36 $168.38
3 inch $390.00 $578.30 $618.78 $662.09 $708.44 $758.03
4 inch $650.00 $894.60 $957.22 $1,024.23 $1,095.93 $1,172.65 6 inch $1,300.00 $1,773.19 $1,897.31 $2,030.12 $2,172.23 $2,324.29 8 inch $2,080.00 $2,827.51 $3,025.44 $3,237.22 $3,463.83 $3,706.30 Commodity Charges
Rate per Tgal of Water Consumed:

Residential Uniform Rate $3.75 $4.17 $4.46 $4.77 $5.10 $5.46 Non-Residential Uniform Rate $4.48 $4.17 $4.46 $4.77 $5.10 $5.46 Temporary Meter Uniform Rate $4.48 $4.17 $4.46 $4.77 $5.10 $5.46 Water Rate Schedule Current
Rates
Proposed Rates
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
FIXED MONTHLY CHARGES (per unit)
Single Family/Duplex $55.00 $52.76 $53.82 $54.90 $56.00 $57.12 Multi Family $43.19 $37.04 $37.78 $38.54 $39.31 $40.10
Mobile Home $31.66 $37.04 $37.78 $38.54 $39.31 $40.10
Commercial $21.73 $32.62 $33.28 $33.95 $34.63 $35.32
NON-RESIDENTIAL VOLUMETRIC CHARGES PER TGAL 1
Commercial
Class A Usage2
$4.43 $4.52 $4.61 $4.70 $4.79 $4.89
Class B Usage3
$5.34 $5.68 $5.79 $5.91 $6.03 $6.15
Class C Usage4
$9.42 $13.31 $13.58 $13.85 $14.13 $14.41
Class D Usage5
$3.96 $4.10 $4.18 $4.26 $4.35 $4.44

1. Tgal = thousand gallon, or 1,000 gallons

2. Standard strength commercial customers include general, theaters, laundries, fairgrounds & dumping at WWTP.

3. Moderate strength commercial customers include hotels & motels.

4. High strength commercial customers include restaurants.

5. Class D commercial customers include schools.

Sewer Rate Schedule Current
Rates
Proposed Sewer Rates

Item # 10.

City staff remain committed to operating as efficiently as possible and will only increase water and wastewater rates as needed based on an annual review of the respective enterprise fund finances. A low-income utility rate discount program remains available for qualifying customers, providing a 15% discount to customers with incomes at or below 150% of the federal poverty level.

On May 9, 2023, Council reviewed the Proposition 218 Notice (Attached) and the Proposition 218 Notices were mailed to all property owners within the City and all customers of record on existing utility accounts on June 8, 2023. As of the date of this report, twelve protests have been received by the City.

Staff requests that Council conduct the noticed public hearing (protest hearing) and consider any public testimony and a tabulation of protests by the City Clerk. Assuming the absence of a majority protest, Staff recommends that Council adopt the attached resolution, amending the City’s Fee Schedule for maximum rate adjustments for Water and Wastewater User Rates.

Council Goals/Objectives: Implementation of the proposed Water and Wastewater Capacity Fees and Development Impact Fees executes portions of work tasks towards achieving/maintaining Strategic Plan Goal #7 Water & Wastewater Systems & Underground Infrastructure.

Fiscal Impact: The proposed water and wastewater user rates are established in order to recover the cost of service and to maintain the long term fiscal well-being of the water and wastewater enterprise funds. Rate fee adjustments will be phased in over time to minimize the impact on customers.

Funds Available: N/A Account #: N/A
Reviewed by: __ City Manager

Item # 10.
$Workfile: RackspaceReg.nmp $, $Revision: 26 $,60986_GrassValley.csv,6/7/2023 7:51:20 AM,0.49,0.49,99999,0.99

Item # 10.
$Workfile: RackspaceReg.nmp $, $Revision: 26 $,60986_GrassValley.csv,6/7/2023 7:51:20 AM,0.49,0.49,99999,0.99

Item # 10.

OFFICE LOCATIONS:

Temecula – Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
San Francisco – Regional Office
870 Market Street, Suite 1223
San Francisco, CA 94102
California Satellite Offices
Atascadero, Davis
Huntington Beach,
Joshua Tree, Riverside
Sacramento, San Jose
www.nbsgov.com
Prepared by:

CITY OF

GRASS VALLEY
Draft Report
Water and
Wastewater
Rate Studies
May 2023

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report
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City of Grass Valley
Water and Wastewater Rate Study Report TOC

TABLE OF CONTENTS
Section 1. Executive Summary...........................................................................................1 Background and Purpose ....................................................................................................1 Key Findings.........................................................................................................................1 Study Recommendations ....................................................................................................1 Section 2. Overview of the Study Methodology .................................................................2 Rate Design Criteria.............................................................................................................2 Rate Structure Terminology ................................................................................................3 Section 3. Water Rate Study ..............................................................................................5 Developing Recommended Water Rates............................................................................5 Water Utility Revenue Requirements.................................................................................5 Characteristics of Water Customers by Class......................................................................7 Cost of Service Analysis – Water.......................................................................................10 Current vs. Proposed Water Rate Structures....................................................................12 Comparison of Current and Proposed Monthly Bills ........................................................13 Section 4. Wastewater Rate Study................................................................................... 17 Developing Recommended Wastewater Rates ................................................................17 Wastewater Utility Revenue Requirements......................................................................17 Cost of Service Analysis – Wastewater .............................................................................19 Current vs. Proposed Wastewater Rates..........................................................................22 Section 5. RECOMMENDATIONS AND NEXT STEPS ........................................................... 26 Consultant Recommendations..........................................................................................26 Next Steps..........................................................................................................................26

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City of Grass Valley
Water and Wastewater Rate Study Report TOC
Section 6. Appendix A - ABBREVIATIONS & ACRONYMS................................................... 27 Section 7. Appendix B – Water Rate Summary Tables ...................................................... 29 Section 8. Appendix C – Wastewater Rate Summary Tables............................................. 31

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Water and Wastewater Rate Study Report TOC
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City of Grass Valley
Water and Wastewater Rate Study Report TOF

TABLE OF FIGURES
Figure 1. Primary Components of a Rate Study ................................................................................................... 2 Figure 2. Summary of Water Revenue Requirements.......................................................................................... 7 Figure 3. Summary of Water Reserve Funds........................................................................................................ 7 Figure 4. Water Consumption by Customer Class................................................................................................ 8 Figure 5. Peaking Factors by Customer Class ....................................................................................................... 9 Figure 6. Number of Accounts by Customer Class ............................................................................................. 10 Figure 7. Summary of Fixed and Variable Rate Revenue Requirements............................................................ 11 Figure 8. Summary of Adjusted Rate Revenue Requirements by Customer Class............................................. 12 Figure 9. Current and Proposed Water Rates Fiscal Year 2022/23 – 2026/27................................................... 13 Figure 10. Monthly Water Bill Comparison for SFR Customers.......................................................................... 14 Figure 11. Monthly Water Bill Comparison with Other Communities............................................................... 15 Figure 12. Monthly Water Bill Comparison for Commercial Users.................................................................... 16 Figure 13. Summary of Wastewater Revenue Requirements............................................................................ 18 Figure 14. Summary of Wastewater Reserve Funds .......................................................................................... 18 Figure 15. Summary of Estimated Flow to Treatment Plant.............................................................................. 19 Figure 16. Summary of Flow and Strength (BOD & TSS) Characteristics by Customer Class............................. 20 Figure 17. Summary of Wastewater customer Accounts and EDU’s ................................................................. 21 Figure 18. Summary of Adjusted Rate Revenue Requirements by Customer Class........................................... 21 Figure 19. Current and Proposed Wastewater Rates......................................................................................... 22 Figure 20. Monthly Single-Family Wastewater Bill Comparison ........................................................................ 23 Figure 21. Monthly Single-Family Wastewater Bill Comparison with Other Communities ............................... 24 Figure 22. Monthly Single-Family Wastewater Bill Comparison with Other Communities ............................... 24 Figure 23. Monthly CLASS A-Strength Commercial Wastewater Bill Comparison ............................................. 25

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City of Grass Valley
Water and Wastewater Rate Study Report TOF
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Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 1
Section 1. EXECUTIVE SUMMARY
Purpose
The overall purpose of the rate study was to develop the proposed water and wastewater rates. The rate study required thoroughly reviewing and confirming the City’s broader rate-related goals and objectives, including key financial parameters, and ensuring the new rates reflect the City’s unique characteristics and provide long-term revenue stability.

The rates developed in this study are intended to meet the requirements of Proposition 218 (Prop 218), commonly referred to as the “right to vote on new taxes” act and were developed in a manner that is consistent with industry standards. This report is provided in part to assist the City in its effort to communicate transparently with the residents and businesses it serves.

In developing proposed utility rates, NBS and City staff worked cooperatively in developing study results and rate alternatives. The City Council reviewed initial results, provided NBS and City staff with feedback and direction, and ultimately approved the water and wastewater rates.

Key Findings

REVENUE REQUIREMENTS AND PROJECTED RATES
The City’s water and wastewater utilities both need to complete ongoing rehabilitation and replacement projects while at the same time building and maintaining healthy reserve funds. NBS calculated two scenarios of rate increases as will be discussed in sections 2 and 3 in this report.

WATER RATES
The current water rate design was retained; where water customers will be charged a monthly fixed service charge by meter size, and a volumetric charge based on water consumption for all customers, grouped by residential and non-residential. Although increases are proposed, customer bills under the recommended water rates still compare favorably with other communities in the region.

WASTEWATER RATES
The current wastewater rate design retained; where wastewater customers will be charged a monthly fixed service charge by living unit for all customers, and a volumetric charge based on water consumption for non-residential customers. As with water rates, although increases are recommended, customer bills under the recommended wastewater rates still compare favorably with other communities in the region.

Study Recommendations
NBS recommends the City take the following measures:
 Conduct a legal review of the proposed rates.
 Proceed with Prop 218 noticing requirements and 45-day protest period.  Assuming a successful Prop 218 process (that is, there is no majority protest of the rates), adopt the rates summarized in this report.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 2
Section 2. OVERVIEW OF THE STUDY METHODOLOGY
Comprehensive rate studies such as this one typically includes three components: (1) preparation of a financial plan, which identifies the net revenue requirements for the utility; (2) analysis of the cost to serve each customer class, and; (3) the rate structure design. These steps are shown in Figure and are intended to follow industry standards and reflect the fundamental principles of cost-of-service ratemaking embodied in the American Water Works Association (AWWA) Principles of Water Rates, Fees, and Charges1, also referred to as Manual M1 as well as the Water Environment Federation’s (WEF) Financing and Charges for Wastewater Systems, Manual of Practice No 27, Fourth Edition.

FIGURE 1. PRIMARY COMPONENTS OF A RATE STUDY
N
This methodology also addresses requirements under Proposition 218 that rates not exceed the cost of providing the service and be proportionate to the cost of providing service for all customers. In terms of the chronology of the study, these three steps represent the order they were performed in this Study for both utilities.

As a part of this rate study, NBS projected revenues and expenditures, developed net revenue requirements, performed cost-of-service rate analyses, and prepared new utility rates for the City. As a result of this study, rate increases – or more accurately, increases in the total revenue collected from rates – are recommended for each utility. The City provided NBS with the necessary data, including historical, current, and projected revenues, expenditures, customer accounts and water consumption, along with other operational and capital cost data.

Rate Design Criteria
It is important for utilities to send proper price signals to its customers about the actual cost of providing service. This objective is typically addressed through both the magnitude of the rates and the rate structure design. In other words, both the amount of revenue collected and the way in which the revenue is collected from customers are important.

Several criteria are typically considered in setting rates and developing sound rate structures. The fundamentals of this process have been documented in a number of rate-setting manuals. For example, the foundation for evaluating rate structures is generally credited to James C. Bonbright in the Principles of

1 Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices, M1, AWWA, seventh edition, 2017.

Step 3: Rate Design - Considers
what rate structure will best meet
the City’s need to collect rate
revenue from each customer class.

Step 2: Cost-of-Service Analysis –
Proportionately allocates the revenue
requirements to the customer classes
in compliance with industry standards
and State Law.

Step 1: Financial Plan/ Revenue
Requirements – Compares current
sources and uses of funds and
determines the revenue needed
from rates and project rate
adjustments.

FINANCIAL PLAN/

REVENUE

REQUIREMENTS

COST-OF-SERVICE

ANALYSIS
RATE DESIGN 1 2 3 ANALYSIS

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 3
Public Utility Rates2, which outlines pricing policies, theories, and economic concepts along with various rate designs. The other common industry standard is the American Water Works Association’s (AWWA) Manual M1.

The following is a simplified list of the attributes of a sound rate structure, which apply to water and wastewater utilities:
 Rates should be easy to understand from the customer’s perspective.  Rates should be easy to administer from the utility’s perspective.  Rates should promote the efficient allocation of the resource.  Rates should be equitable and non-discriminating (i.e., cost based).  There should be continuity in the ratemaking philosophy over time.  Other utility policies should be considered (e.g., encouraging conservation & economic development).
 Rates should consider the customer’s ability to pay.
 Rates should provide month-to-month and year to year revenue stability.

Rate Structure Terminology
One of the most fundamental points in considering rate structures is the relationship between fixed and variable costs. The vast majority of water and wastewater rate structures contain a fixed or minimum charge, and a volumetric charge.

The City’s rate design criteria are unique to the characteristics of the City’s utilities. Capital and operational reserve funding targets used in this study have been established with the input of City staff in order to meet specific utility objectives. The following discussion describes general industry rate-study practices in California and principals that were reflected in the recommended rates.

FIXED CHARGES
Fixed charges can be called base charges, minimum monthly charges, customer charges, fixed meter charges, etc. Although fixed charges are typically a significant percentage of the utility’s overall cost structure, utilities rarely collect 100% of their fixed costs through fixed charges. In general, customers prefer that charges include a volumetric component, as there is an inherent and widely recognized equity in a “pay-for-what-you-use” philosophy.

For a water utility, fixed charges typically increase by meter size. For example, a customer with a 2" meter may have a fixed meter charge that is eight times greater than the 5/8” meter charge based on the meter’s maximum flow rate.
3 Because a large portion of water utilities’ costs are typically related to meeting capacity requirements, reflecting the capacity demands of each meter size is important in establishing equitable fixed charges for customers.

2 James C. Bonbright; Albert L. Danielsen and David R. Kamerschen, Principles of Public Utility Rates, (Arlington, VA: Public Utilities Report, Inc., Second Edition, 1988), p. 383-384.
3 These are typically referred to as “hydraulic capacity factors” that represent the relative capacity required in the water system.

See American Water Works Association, Water Meters – Selection, Installation, Testing and Maintenance, M6 Manual, Table 5-3.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 4

VARIABLE (CONSUMPTION-BASED) CHARGES
In contrast, variable costs such as the cost of purchased water, electricity used in pumping water, and chemicals used in the water and wastewater treatment facilities tend to change with the quantity of water produced (or wastewater effluent treated). For water utilities, variable charges are generally based on metered consumption and charged on a dollar-per-unit cost (per 100 cubic feet, or hcf, in the City’s case).

There are significant variations in the basic philosophy of variable charge rate alternatives. Under a uniform (single tier) water rate structure, the cost per unit does not change with consumption, and provides a simple and straightforward approach from the perspective of customer understanding and rate administration/billing. A similar volumetric rate is often used for wastewater utilities to reflect the flowrelated costs (i.e., sewage effluent) as well as the costs of treating the level of wastewater “strength” (i.e., the amount of biochemical oxygen demand (BOD) and total suspended solids (TSS) constituents).

KEY FINANCIAL ASSUMPTIONS
The following are the key assumptions used in the water and wastewater rate analyses:
 Funding Capital Projects – The analysis for both utilities assumes:
 Capital costs attributable to existing customers are funded with rate revenue.  Capital costs attributable to growth, or expansion-related costs, will be funded through connection fee revenue.
 All capital projects listed in the financial plans are City projections.  Outside funding may be sought out for capital improvement projects.  Reserve Targets for Water and Wastewater – Reserves for operations and capital needs are set at levels established by City staff and Council. Reserve targets used in the analysis are as follows:
 Operating & Maintenance Reserve – 90 days of O&M expenses  Capital Rehabilitation and Replacement Reserve – 3 percent of net asset values for wastewater and 6 percent of net asset values for water
 System Reinvestment Reserve Fund - $300,000 annually for ongoing maintenance  Emergency Reserve Fund - $300,000 for emergency revenue stability  Inflation and Growth Projections – Inflation and growth projections are applied equally to the water and wastewater utilities:
 General inflation is 3 percent annually, per Bureau of Labor for Nevada County and California State projections.
 Customer growth is 0 percent annually, per City projections.  Labor cost inflation is 1.5 percent annually, per Bureau of Labor for Nevada County and California State projections.
 Energy cost inflation is 1.5 percent annually, per Bureau of Labor for Nevada County and California State projections.
 Fuel cost inflation is 7.5 percent annually, per Bureau of Labor for Nevada County and California State projections.

The next two sections discuss the water and wastewater rate studies in further detail.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 5
Section 3. WATER RATE STUDY
Developing Recommended Water Rates
The water rate analysis was undertaken with a few specific objectives in mind, including:
 Generating sufficient additional revenue needed to meet projected funding requirements,  Providing revenue stability,
 Providing equity among customer classes,
 Incorporating projected water consumption levels.

NBS developed several water rate alternatives as requested by City staff over the course of this study. All rate structure alternatives were developed using industry standards and cost-of-service principles. The following are the basic components included in this analysis:
 Developing Cost Allocations: The water revenue requirements were “functionalized” into three categories: (1) fixed capacity costs; (2) commodity (or volume-based) costs; and (3) customer service costs. Each of these functional costs has a distinct allocation factor used to determine revenue requirements by customer class.
 Determining Revenue Requirements by Customer Class4: Revenue requirements for each customer class were determined based on allocation factors such as water consumption, capacity peaking factors, and number of accounts by meter size. For example, volume-related costs are allocated based on the water consumption for each class, while customer costs are allocated based on number of accounts. Once the costs are allocated and revenue requirement for each customer class is determined, collecting these revenue requirements from each customer class is addressed in the rate design task.
 Rate Design and Fixed vs. Variable Costs: Fixed costs, such as capacity-related and infrastructure costs, billing, and general administrative costs, are typically collected through a fixed monthly charge, while variable costs such as pumping and purchased water costs are typically collected through volumetric charges. While this study determined that the City’s fixed and variable costs are approximately 65% fixed and 35% variable, California law5 and industry practices provide flexibility regarding the actual percentages collected from fixed vs. variable rates. After evaluating various rate alternatives, a rate structure that recovers 45% fixed and 55% variable charges is proposed, based on direction from City staff and the City Council.

Water Utility Revenue Requirements
It is important for municipal utilities to maintain reasonable reserves in order to handle emergencies, fund working capital, maintain a good credit rating, and generally follow sound financial management practices.

Rate increases are governed by the need to meet these objectives as follows:

4 In the City’s case, meter sizes serve as customer classes for the water utility while more traditional customer classes, such as single-family, multi-family, and commercial classes were used for the wastewater utility. 5 For example, AB 2882 allows a variety of conservation-oriented rate structures, including tiered water rates, and the California Urban Water Conservation Council recommends recovering 70 percent of rate revenue through volume-based rates. However, water utilities generally develop their own policy and conservation objectives.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 6
 Meeting Operating Costs: For Fiscal Years 2023/24 through 2027/28, the net revenue requirement (i.e., total annual O&M expenses, debt service, and rate-funded capital costs less non-rate revenues) is estimated to be approximately $2 mil to $3 mil. If no rate increases are implemented, current revenue is expected to be insufficient to cover these operating costs.  Maintaining Adequate Bond Coverage: The City is required by its bond covenants for 4 current debt obligations to maintain debt-service coverage ratios of at least 1.20. The benefit of maintaining a higher coverage ratio is that it strengthens the City’s credit rating, which can help lower the interest rates for debt-funded capital projects, and in turn reduce annual debt service payments.

This analysis assumes that the City will be incurring $1.5 million in grants to fund the planned capital expenses.
 Building and Maintaining Reserve Funds: If no rate increases are implemented, reserves are expected to essentially be depleted by FY 2025/26. Implementing annual rate increases builds target reserve fund levels to appropriate levels. Primarily to minimize impacts on ratepayers, City staff chose to use the following reserve targets:
 Operating Reserves reserve target is equal to a three-month (or 90-day) cash cushion for normal operations. For Fiscal Year 2023/24, this is estimated to be $411,000. This reserve is intended to preserve financial viability in the event of short-term fluctuations in revenues and/or expenditures, including those due to weather patterns, the natural billing cycle cash flows, variability in volume-based rates, and changes in the age of receivables.  Capital Reserves of 6 percent of net assets serve as a starting point for addressing longer-term capital needs. For Fiscal Year 2023/24, this is estimated to be $276,000. If ratepayers can generate this level of revenues, the City will have reserved a partial cash resource that can be applied toward future capital replacement and rehabilitation needs.  System Reinvestment Reserve of $300,000 annually for any unplanned maintenance the City may occur.
 Emergency Reserve of $300,00 for any emergency situations.

Figure summarizes the sources and uses of funds and net revenue requirements for the next five years and includes the recommended annual rate increases.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 7
FIGURE 2. SUMMARY OF WATER REVENUE REQUIREMENTS
Figure summarizes the projected reserve fund balances and reserve targets. A summary of the water utility’s proposed 10-year financial plan, which is included in Appendix B – Water Rate Study Summary Tables, includes revenue requirements, reserve funds, revenue sources, proposed rate increases, and the City’s capital improvement program.

FIGURE 3. SUMMARY OF WATER RESERVE FUNDS
Characteristics of Water Customers by Class
Water customer characteristics are used in allocating costs in the cost-of-service analysis. The City’s most recent data by customer class includes the consumption data in Figure , peaking factors in Figure , and the total number of accounts in Figure .

FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Water Funds
Rate Revenue Under Prevailing Rates $ 2,200,000 $ 2,200,000 $ 2,200,000 $ 2,200,000 $ 2,200,000 $ 2,200,000 Additional Revenue from Rate Increases 1
- 115,500 318,780 495,095 683,751 885,614
Projected Annual Rate Increase 0.00% 7.00% 7.00% 7.00% 7.00% 7.00% Non-Rate Revenues 80,000 80,000 80,000 80,000 80,000 80,000 Interest Earnings 57,150 56,370 57,200 54,705 47,547 41,049 Total Sources of Funds $ 2,337,150 $ 2,451,870 $ 2,655,980 $ 2,829,799 $ 3,011,298 $ 3,206,663 Uses of Water Funds
Operating Expenses $ 1,572,379 $ 1,645,700 $ 1,723,800 $ 1,807,200 $ 1,896,000 $ 1,990,800 Debt Service 394,016 396,504 397,814 398,918 400,057 240,094 Rate-Funded Capital Expenses 332,023 - - - - 844,829
Total Use of Funds $ 2,298,418 $ 2,042,204 $ 2,121,614 $ 2,206,118 $ 2,296,057 $ 3,075,723 Surplus (Deficiency) after Rate Increase $ 38,732 $ 409,666 $ 534,366 $ 623,681 $ 715,240 $ 130,940 Cumulative Rate Increases 0.00% 7.00% 14.49% 22.50% 31.08% 40.26% Surplus (Deficiency) before Rate Increase $ 38,732 $ 294,166 $ 215,586 $ 128,586 $ 31,489 $ (754,674) Net Revenue Requirement 2$ 2,181,268 $ 1,925,834 $ 2,004,414 $ 2,091,414 $ 2,188,511 $ 2,974,674

1. Revenue from rate increases assume an implementation date of October 1, 2023 and then July 1st, 2024 through 2027.

2. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amount needed from water rates.

Summary of Sources and Uses of Funds
and Net Revenue Requirements
Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Operating Reserve Fund
Ending Balance $ 393,095 $ 411,425 $ 430,950 $ 451,800 $ 474,000 $ 497,700 Recommended Minimum Target 393,095 411,425 430,950 451,800 474,000 497,700 Capital Outlay Reserve Fund
Ending Balance $ 2,037,555 $ 2,063,847 $ 1,910,154 $ 1,504,466 $ 1,132,944 $ 494,340 Recommended Minimum Target 273,400 276,000 301,900 336,900 372,400 407,100 System Reinvestment Reserve Fund
Ending Balance $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Recommended Minimum Target 300,000 300,000 300,000 300,000 300,000 300,000 Emergency Reserve Fund
Ending Balance $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Recommended Minimum Target 300,000 300,000 300,000 300,000 300,000 300,000 Debt Service Reserve Fund
Ending Balance $ 357,285 $ 363,931 $ 370,700 $ 377,595 $ 384,618 $ 391,772 Recommended Minimum Target - - - - - -
Total Ending Balance $ 3,387,935 $ 3,439,203 $ 3,311,804 $ 2,933,861 $ 2,591,562 $ 1,983,812 Total Recommended Minimum Target $ 1,266,495 $ 1,287,425 $ 1,332,850 $ 1,388,700 $ 1,446,400 $ 1,504,800 Beginning Reserve Fund Balances and
Recommended Reserve Targets
Budget Projected

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 8
FIGURE 4. WATER CONSUMPTION BY CUSTOMER CLASS
Development of the COMMODITY Allocation Factor
Summer Winter Average
Single Family Residential
5/8-inch meter 151,714 48.8% 11 4 7
3/4-inch meter 7,788 2.5% 10 6 8
1-inch meter 5,191 1.7% 79 16 48

1.5-inch meter 5,621 1.8% 296 28 156
2-inch meter 2,711 0.9% 423 33 226
Multi Family Residential
5/8-inch meter 3,738 1.2% 15 1 7
3/4-inch meter 4,916 1.6% 23 7 14
1-inch meter 3,966 1.3% 17 1 8

1.5-inch meter 12,804 4.1% 75 23 46
2-inch meter 14,508 4.7% 97 49 71
3-inch meter 18 0.0% 2 0 1
Mobile Home
5/8-inch meter 34 0.0% 4 2 3
Commercial
5/8-inch meter 25,760 8.3% 12 6 9
3/4-inch meter 6,945 2.2% 25 9 16
1-inch meter 9,351 3.0% 32 17 22

1.5-inch meter 26,551 8.5% 69 42 50
2-inch meter 9,282 3.0% 120 29 70
3-inch meter 6,465 2.1% 216 23 108
4-inch meter 7,661 2.5% 580 112 319
6-inch meter 2,440 0.8% 403 0 203
Fire Meter
2-inch fire meter - 0.0% 0 0 0
4-inch fire meter - 0.0% 0 0 0
Compound Meter 3,367 1.1% 84 2 35
Total 310,832 100% 17 6 125

1. Consumption is from June 2021 through January 2022. It has been annualized for estimation of full year.

Source file: Billed Consumption Excel Export_manipulated.xlsx Average Monthly Statistics per
Customer Class Meter (Tgal)
Volume
(Tgal)1
Percent of
Total
Volume

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 9
FIGURE 5. PEAKING FACTORS BY CUSTOMER CLASS
Development of the CAPACITY Allocation Factor
Customer Class
Average
Monthly
Use (Tgal)
Peak
Monthly
Use (Tgal)2
Peaking
Factor
Max
Monthly
Capacity
Factor
Single Family Residential
5/8-inch meter 12,643 20,532 1.62 49.5%
3/4-inch meter 649 801 1.23 1.9%
1-inch meter 433 712 1.65 1.7%

1.5-inch meter 468 888 1.90 2.1%
2-inch meter 226 423 1.87 1.0%
Multi Family Residential
5/8-inch meter 312 670 2.15 1.6%
3/4-inch meter 410 659 1.61 1.6%
1-inch meter 331 691 2.09 1.7%

1.5-inch meter 1,067 1,733 1.62 4.2%
2-inch meter 1,209 1,654 1.37 4.0%
3-inch meter 1 2 1.47 0.0%
Mobile Home
5/8-inch meter 3 4 1.30 0.0%
Commercial
5/8-inch meter 2,147 2,990 1.39 7.2%
3/4-inch meter 579 922 1.59 2.2%
1-inch meter 779 1,109 1.42 2.7%

1.5-inch meter 2,213 3,018 1.36 7.3%
2-inch meter 774 1,325 1.71 3.2%
3-inch meter 539 1,078 2.00 2.6%
4-inch meter 638 1,160 1.82 2.8%
6-inch meter 203 403 1.98 1.0%
Fire Meter
2-inch fire meter 0 0 0.00 0.0%
4-inch fire meter 0 0 0.00 0.0%
Compound Meter 281 672 2.40 1.6%
Total 25,903 41,449 100%

2. Based on peak monthly data (peak day data not available).

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 10
FIGURE 6. NUMBER OF ACCOUNTS BY CUSTOMER CLASS
Cost of Service Analysis – Water
As previously noted in Figure , the purpose of the cost-of-service analysis is to fairly and equitably allocate annual water utility revenue requirements to customer classes, while the rate design determines the actual rates within each customer class. The first step of separating costs into commodity-, capacity-, and customer-related cost classifications is based on their functional purpose in the water utility: results are summarized in Figure , while more detailed fixed and variable allocations are shown in Appendix B.

Development of the CUSTOMER Allocation Factor
Customer Class
Number
of Meters1
Percent of
Total
Accounts
Single Family Residential
5/8-inch meter 1,851 74.3%
3/4-inch meter 81 3.3%
1-inch meter 9 0.4%

1.5-inch meter 3 0.1%
2-inch meter 1 0.0%
Multi Family Residential
5/8-inch meter 45 1.8%
3/4-inch meter 29 1.2%
1-inch meter 40 1.6%

1.5-inch meter 23 0.9%
2-inch meter 17 0.7%
3-inch meter 1 0.0%
Mobile Home
5/8-inch meter 1 0.0%
Commercial
5/8-inch meter 247 9.9%
3/4-inch meter 37 1.5%
1-inch meter 35 1.4%

1.5-inch meter 44 1.8%
2-inch meter 11 0.4%
3-inch meter 5 0.2%
4-inch meter 2 0.1%
6-inch meter 1 0.0%
Fire Meter
2-inch fire meter 0 0.0%
4-inch fire meter 0 0.0%
Compound Meter 8 0.3%
Total 2,491 100.0%

1. Meter Count is from November 2021.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 11
FIGURE 7. SUMMARY OF FIXED AND VARIABLE RATE REVENUE REQUIREMENTS The next step is to allocate these commodity-related, capacity-related, and customer-related costs to each customer class based on the allocation factors previously shown in Figure through Figure , as follows:
 Water consumption (Figure ) is used to allocate commodity-related variable costs shown in Figure .  Peaking factors (Figure ) are used to allocate the capacity-related costs shown in Figure .  Number of meters (Figure ) are used to allocate the customer-related costs shown in Figure .

The results of this cost allocation process are summarized in Figure :

Commodity - Related Costs $ 868,196 36.9%
Variable Capacity - Related Costs $ 426,504 18.1%
Fixed Capacity - Related Costs $ 581,055 24.7%
Customer - Related Costs $ 478,245 20.3%
Total $ 2,354,000 100%
Adjusted Net Revenue
Requirements
45% Fixed / 55% Variable
Functional
Category
Proposed Rates for FY
2023/24

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 12
FIGURE 8. SUMMARY OF ADJUSTED RATE REVENUE REQUIREMENTS BY CUSTOMER CLASS Current vs. Proposed Water Rate Structures
Besides merely providing the mechanism for collecting rate revenue from individual customers, water rate design presents an opportunity to consider broader rate-design objectives and policies, including revenue stability, equity among customer classes, and water conservation.

During the rate-design analysis, City staff and NBS developed several water rate structure alternatives for consideration. As previously noted, after carefully considering Proposition 218 requirements and recent court cases, maintaining a uniform volumetric rate was, in the opinion of NBS, City staff, and the City’s legal counsel the most defensible rate structure. Additionally, maintaining the current meter sizes as customer classifications was also recommended – it maintains continuity with the City’s current design is easy for customers to understand, and easy for the City to administrate.

Net Revenue Requirements for FY 2023/24
Commodity -
Related
Costs
Variable
Capacity -
Related
Costs
Fixed
Capacity -
Related
Costs
Customer -
Related
Costs
Single Family Residential
5/8-inch meter $ 423,758 $ 211,275 $ 287,833 $ 355,372 $ 1,278,238 54% 3/4-inch meter 21,753 8,244 11,232 15,551 56,780 2%
1-inch meter 14,499 7,331 9,987 1,728 33,545 1%

1.5-inch meter 15,701 9,139 12,451 576 37,867 2%
2-inch meter 7,572 4,357 5,936 192 18,058 1%
Multi Family Residential
5/8-inch meter 10,441 6,896 9,395 8,640 35,372 2%
3/4-inch meter 13,731 6,781 9,238 5,568 35,317 2%
1-inch meter 11,078 7,114 9,691 7,680 35,562 2%

1.5-inch meter 35,764 17,834 24,296 4,416 82,310 3%
2-inch meter 40,522 17,018 23,185 3,264 83,989 4%
3-inch meter 50 23 31 192 296 0%
Mobile Home
5/8-inch meter 96 38 52 192 378 0%
Commercial
5/8-inch meter 71,951 30,765 41,913 47,421 192,050 8%
3/4-inch meter 19,398 9,485 12,923 7,104 48,910 2%
1-inch meter 26,117 11,415 15,551 6,720 59,803 3%

1.5-inch meter 74,159 31,055 42,309 8,448 155,971 7%
2-inch meter 25,927 13,635 18,576 2,112 60,250 3%
3-inch meter 18,059 11,094 15,115 960 45,228 2%
4-inch meter 21,398 11,938 16,263 384 49,983 2%
6-inch meter 6,816 4,150 5,654 192 16,813 1%
Fire Meter
2-inch fire meter - - - - - 0%
4-inch fire meter - - - - - 0%
Compound Meter 9,405 6,917 9,423 1,536 27,281 1%
Total Net Revenue Requirement $ 868,196 $ 426,504 $ 581,055 $ 478,245 $ 2,354,000 100% % of COS
Net
Revenue
Req'ts
Customer Classes
Cost of
Service Net
Rev. Req'ts
Classification Components

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 13
Figure compares the current and recommended rates for FY 2023/24 through 2027/28. Cost-of-service adjustments are reflected in the FY 2023/24 rates; thereafter rate increases are applied on an across-theboard basis. Appendix B provides more detail on the development of the proposed water rates.

FIGURE 9. CURRENT AND PROPOSED WATER RATES FISCAL YEAR 2023/24 – 2027/28 Comparison of Current and Proposed Monthly Bills

SINGLE-FAMILY WATER CUSTOMERS
Figure compares monthly water bills under the current and proposed rates, for single-family residential customers, in the first year of the rate adjustment plan. Figure compares current and proposed typical single-family monthly water bills to other communities.

FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Fixed Meter Charges
Monthly Fixed Service Charges:
5/8 inch $26.00 $30.06 $32.16 $34.41 $36.82 $39.40
3/4 inch $39.00 $37.09 $39.69 $42.47 $45.44 $48.62
1 inch $65.00 $51.14 $54.72 $58.55 $62.65 $67.04

1.5 inch $130.00 $86.29 $92.33 $98.79 $105.71 $113.11
2 inch $208.00 $128.46 $137.45 $147.07 $157.36 $168.38
3 inch $390.00 $578.30 $618.78 $662.09 $708.44 $758.03
4 inch $650.00 $894.60 $957.22 $1,024.23 $1,095.93 $1,172.65 6 inch $1,300.00 $1,773.19 $1,897.31 $2,030.12 $2,172.23 $2,324.29 8 inch $2,080.00 $2,827.51 $3,025.44 $3,237.22 $3,463.83 $3,706.30 Commodity Charges
Rate per Tgal of Water Consumed:

Residential Uniform Rate $3.75 $4.17 $4.46 $4.77 $5.10 $5.46 Non-Residential Uniform Rate $4.48 $4.17 $4.46 $4.77 $5.10 $5.46 Temporary Meter Uniform Rate $4.48 $4.17 $4.46 $4.77 $5.10 $5.46 Water Rate Schedule Current
Rates
Proposed Rates

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 14
FIGURE 10. MONTHLY WATER BILL COMPARISON FOR SFR CUSTOMERS

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 15
FIGURE 11. MONTHLY WATER BILL COMPARISON WITH OTHER COMMUNITIES

COMMERCIAL WATER CUSTOMERS
Commercial customers are currently subject to the same fixed monthly charges by meter size and uniform volumetric rate as single-family customers. Figure compares current and proposed monthly bills for commercial customers with a 1.5-inch meter at various levels of consumption, in the first year of the rate adjustment plan.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 16
FIGURE 12. MONTHLY WATER BILL COMPARISON FOR COMMERCIAL USERS

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 17
Section 4. WASTEWATER RATE STUDY
Developing Recommended Wastewater Rates
The wastewater rate study focused on key objectives similar to those considered in the water rate study, with the overriding concern being maintaining the financial health of the utility.

Similar wastewater rate tasks were performed, including (1) developing functional cost allocations, (2) developing revenue requirements by customer class, and (3) determining rates within customer classes.

Detailed tables showing the step-by-step development of the analysis are presented in Appendix C – Wastewater Rate Summary Tables.

Wastewater Utility Revenue Requirements
To identify the wastewater utility’s long-term financial needs, including funding for capital improvement projects, NBS developed a 10-year financial plan that forecasts wastewater revenues, expenditures, and projected reserves. This plan is based on the City’s current operating budget for the utility, discussions with City staff, and related information such as debt service schedules and capital improvement plans. This financial plan addresses four primary objectives:
 Meeting Operating Costs: The wastewater utility must generate enough revenue to cover the expenses of wastewater operations, including administration, maintenance, and the collection system.
 Meeting Capital Improvement Costs: The wastewater utility plans to adequately fund necessary capital improvements, which assumes roughly $10 million in planned capital improvements for the current fiscal year through the end of FY 2027/28.
 Maintaining Adequate Bond Coverage: The City is required by its bond covenants to maintain a debt service coverage ratio of at least 1.20 for the outstanding debt obligations. This analysis assumes that the City will be cash funding the planned capital expenses. It is projected that, with the recommended rate increases, the City will meet the 1.20 debt coverage ratio for all existing and anticipated debt through Fiscal Year 2027/28.
 Maintaining Reserve Funds: Implementing annual rate increases builds target reserve fund levels to appropriate levels. Primarily to minimize impacts on ratepayers, City staff chose to use the following reserve targets:
 Operating Reserves reserve target is equal to a three-month (or 90-day) cash cushion for normal operations. For Fiscal Year 2023/24, this is estimated to be $731,000. This reserve is intended to preserve financial viability in the event of short-term fluctuations in revenues and/or expenditures, including those due to weather patterns, the natural billing cycle cash flows, variability in volume-based rates, and changes in the age of receivables.  Capital Reserves of 3 percent of net assets serve as a starting point for addressing longerterm capital needs. For Fiscal Year 2023/24, this is estimated to be $1,053,000. If ratepayers can generate this level of revenues, the City will have reserved a partial cash resource that can be applied toward future capital replacement and rehabilitation needs.  System Reinvestment Reserve of $300,000 annually for any unplanned maintenance the City may occur.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 18
 Emergency Reserve of $300,00 for any emergency situations.

For FY 2023/24, the net revenue requirement is approximately $3.56 million. Current annual revenues are sufficient to cover annual operating expenditures, debt service payments and contribute to planned capital improvement costs. With the need to maintain healthy reserves, small rate increases are recommended.

Figure summarizes the sources and uses of funds and net revenue requirements for the next five years and includes the recommended annual rate increases. Figure summarizes the utility’s projected reserve funds and target balances.

FIGURE 13. SUMMARY OF WASTEWATER REVENUE REQUIREMENTS
FIGURE 14. SUMMARY OF WASTEWATER RESERVE FUNDS
A summary of the entire 10-year financial plan, showing revenue requirements, revenue sources (including rate revenue), and necessary rate increases is presented in Appendix C, along with a summary of the City’s capital improvement program detail.

FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sources of Sewer Funds
Rate Revenue Under Current Rates $ 4,750,000 $ 4,750,000 $ 4,750,000 $ 4,750,000 $ 4,750,000 $ 4,750,000 Non-Rate Revenues 255,000 255,000 255,000 255,000 255,000 255,000 Interest Earnings 55,000 110,680 101,992 92,668 82,261 82,166 Total Sources of Funds $ 5,060,000 $ 5,115,680 $ 5,106,992 $ 5,097,668 $ 5,087,261 $ 5,087,166 Uses of Sewer Funds
Operating Expenses $ 2,894,678 $ 2,965,791 $ 3,038,846 $ 3,113,899 $ 3,191,011 $ 3,270,241 Existing Debt Service 1,515,365 966,501 975,570 981,738 371,792 381,451 New Debt Service - - - - - -
Rate Funded Capital Expenses 868,000 - - 215,413 886,287 500,743 Total Use of Funds $ 5,278,043 $ 3,932,292 $ 4,014,416 $ 4,311,050 $ 4,449,089 $ 4,152,435 Surplus (Deficiency) before Rate Increase $ (218,043) $ 1,183,389 $ 1,092,576 $ 786,617 $ 638,172 $ 934,731 Additional Revenue from Rate Increases1 - 71,250 191,900 290,738 391,553 494,384 Surplus (Deficiency) after Rate Increase $ (218,043) $ 1,254,639 $ 1,284,476 $ 1,077,355 $ 1,029,725 $ 1,429,115 Increase in Rate Revenue Needed to Avoid Deficit 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% Cumulative Increases 0.00% 2.00% 4.04% 6.12% 8.24% 10.41% Net Revenue Requirement2
$ 4,968,043 $ 3,566,611 $ 3,657,424 $ 3,963,383 $ 4,111,828 $ 3,815,269

1. Assumes new rates are implemented October 1, 2023.

2. Total Use of Funds less non-rate revenues and interest earnings. This is the annual amount needed from rates.

Summary of Sources and Uses of Funds and
Net Revenue Requirements
Prop 218 Rate Period
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Sewer Operating Reserve Fund
Ending Balance $ 713,756 $ 731,291 $ 749,304 $ 767,811 $ 786,825 $ 806,361 Recommended Minimum Target 713,756 731,291 749,304 767,811 786,825 806,361 Working Capital Reserve Fund
Ending Balance $ 3,736,807 $ 3,252,158 $ 2,732,820 $ 2,154,849 $ 2,130,711 $ 2,540,579 Recommended Minimum Target 1,033,000 1,053,000 1,074,000 1,096,000 1,120,000 1,131,000 System Reinvestment Reserve Fund
Ending Balance $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 750,000 Recommended Minimum Target 300,000 300,000 300,000 300,000 300,000 300,000 Emergency Reserve Fund
Ending Balance $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 750,000 $ 750,000 Recommended Minimum Target 300,000 300,000 300,000 300,000 300,000 300,000 Total Ending Balance (Unrestricted) $ 5,950,563 $ 5,483,449 $ 4,982,125 $ 4,422,660 $ 4,417,535 $ 4,846,940 Recommended Min. Target (Unrestricted) $ 2,346,756 $ 2,384,291 $ 2,423,304 $ 2,463,811 $ 2,506,825 $ 2,537,361 Beginning Reserve Fund Balances and
Recommended Reserve Targets
Prop 218 Rate Period

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 19
Cost of Service Analysis – Wastewater
The wastewater cost-of-service analysis is where annual revenue requirements are fairly and equitably allocated to customer classes. In contrast to the City’s water customer classes, the wastewater customer classes are represented by type of customer: residential, multi-family, mobile home, and commercial.

The key factors used in the wastewater cost-of-service analysis include the estimated effluent (flow) going to the wastewater treatment plant, the effluent strengths (BOD and TSS), and customer-related costs (e.g., billing and administrative costs). Actual wastewater flow data from 2020 was used.

Figure shows how the volume allocation factors were developed, which are the percentages of annual consumption and estimated flow by various types of customers.

FIGURE 15. SUMMARY OF ESTIMATED FLOW TO TREATMENT PLANT Customer Class Effluent Strengths – Effluent strength factors for individual customer classes are estimated using the general industry guidelines6. The estimated effluent strengths by customer class are described below.
 Residential customers, including single-family, multi-family and mobile homes, are estimated to have BOD and TSS strength factors of 175 mg/l.

6 The State Water Resources Control Council (SWRCB) Revenue Program Guidelines, Appendix G, page G-21 “Commercial User Strength Characteristics,” were used for this purpose.

Development of the VOLUME Allocation Factor1
Customer Class Number
of Accounts
June 21-
Jan 22
Consumption
(Tgal)
Annualized
Consumption
(Tgal)
Adjusted
Annual
Volume2
(Tgal)
Percentage
of Volume
Single Family/Duplex 3,406 151,086 226,630 223,558 46.81% Multi Family 207 26,633 96,496 95,188 19.93%
Mobile Home 2 23 78 77 0.02%
Commercial
Class A Usage3562 68,599 102,899 101,504 21.25%
Class B Usage414 20,468 30,702 30,285 6.34%
Class C Usage559 10,919 16,378 16,156 3.38%
Class D Usage633 6,768 10,152 10,015 2.10%
GV FLAT 37 558 838 826 0.17%
NID FLAT 51 0 0 0 0.00%
Total 4,371 285,055 484,172 477,610 100.00%
477,610 Flow (Tgal/yr.)

0.99 Flow Adj. Factor

1. Source files for accounts: Billed Consumption Excel Export_manipulated.xlsx

2. Adjusted annual volume based on wastewater treatment plant influent data for 2020 flow.

Source file: Annual Flow totals.xlsx

3. Standard strength commercial customers include general, theaters, laundries, fairgrounds & dumping at WWTP.

4. Moderate strength commercial customers include hotels & motels.

5. High strength commercial customers include restaurants.

6. Class D commercial customers include schools.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 20
 Commercial customers have strength factors ranging from lower to higher than residential users, reflecting four strength-related classes (A-, B-, C- and D-strength users).

Figure summarizes the strength characteristics and allocation percentages of the utility’s wastewater customer classes.

FIGURE 16. SUMMARY OF FLOW AND STRENGTH (BOD & TSS) CHARACTERISTICS BY CUSTOMER CLASS Figure compares the total number of accounts and living units or EDUs (depending on how customers are billed) by customer class. Figure then summarizes the total rate revenue requirements by customer class resulting from the cost-of-service cost allocation process. Cost classification components include volume, strength-related (BOD and TSS) and customer-related costs and are represented both as a dollar amount and as a percentage of total net revenue requirements.

Development of the STRENGTH Allocation Factor
Average
Strength
Factor3
(mg/l)
Calculated
BOD
(lbs./yr.)
Percent of
Total
Average
Strength
Factor3
(mg/l)
Calculated
TSS
(lbs./yr.)
Percent of
Total
Single Family/Duplex 223,558 175 326,283 40.8% 175 326,283 50.0% Multi Family 95,188 175 138,926 17.4% 175 138,926 21.3% Mobile Home 77 175 113 0.0% 175 113 0.0%
Commercial
Class A Usage4101,504 130 110,051 13.8% 80 67,724 10.4% Class B Usage530,285 310 78,300 9.8% 120 30,310 4.6%
Class C Usage616,156 1,000 134,742 16.9% 600 80,845 12.4% Class D Usage710,015 130 10,858 1.4% 100 8,352 1.3%
Total 476,784 799,274 100.0% 652,553 100.0%

3. Typical strength factors for BOD and TSS are from the State Water Resources Control Board Revenue Program Guidelines, Appendix G

4. Standard strength commercial customers include general, theaters, laundries, fairgrounds & dumping at WWTP.

5. Moderate strength commercial customers include hotels & motels.

6. High strength commercial customers include restaurants.

7. Class D commercial customers include schools.

Total Suspended Solids (TSS)
Adjusted
Annual Flow
(Tgal)
Customer Class
Biochemical Oxygen Demand (BOD)

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 21
FIGURE 17. SUMMARY OF WASTEWATER CUSTOMER ACCOUNTS AND EDU’S FIGURE 18. SUMMARY OF ADJUSTED RATE REVENUE REQUIREMENTS BY CUSTOMER CLASS As shown in Figure , the total rate revenue expected to be collected in FY 2023/24 would be approximately $4.85 million. The cost allocation factors shown in Figure through Figure are used to calculate the amount of this revenue collected from fixed charges and volumetric rates.

How these costs are then collected from fixed and volumetric charges within each customer class is part of the rate design analysis, the third study component previously shown in Figure .

Development of the CUSTOMER Allocation Factor
Customer Class
Number
of Accounts1
Percentage
of Accounts
Number
of EDUs1
Percentage
of Units
Single Family/Duplex 3,406 77.9% 3,542 46.9%
Multi Family 207 4.7% 2,465 32.7%
Mobile Home 2 0.0% 2 0.0%
Commercial
Class A 562 12.9% 1,015 13.4%
Class B 14 0.3% 223 3.0%
Class C 59 1.3% 98 1.3%
Class D 33 0.8% 35 0.5%
GV FLAT 37 0.8% 59 0.8%
NID FLAT 51 1.2% 109 1.4%
Total 4,371 100% 7,548 100%

1. Source files for accounts: Billed Consumption Excel Export_manipulated.xlsx EDU - Equivalent Dwelling Unit

BOD TSS
Net Revenue Requirements 1
$ 1,797,892 $ 967,892 $ 967,892 $ 1,111,957 $ 4,845,633 --

37.1% 20.0% 20.0% 22.9% 100.0%
Single Family/Duplex 841,552 395,117 483,956 521,779 2,242,404 46.3% Multi Family 358,320 168,235 206,061 363,124 1,095,740 22.6% Mobile Home 291 136 167 295 889 0.0%
Commercial -
Class A Usage2382,098 133,268 100,450 149,522 765,338 15.8% Class B Usage3114,005 94,819 44,957 32,851 286,631 5.9% Class C Usage460,817 163,168 119,913 14,437 358,335 7.4% Class D Usage537,698 13,148 12,388 5,156 68,391 1.4%
GV FLAT 3,110 - - 8,737 11,847 0.2%
NID FLAT - - - 16,057 16,057 0.3%
Total $ 1,797,892 $ 967,892 $ 967,892 $ 1,111,957 $ 4,845,633 100%

1. Revenue requirement for each customer class is determined by multiplying the revenue requirement from each cost classification by the allocation factors for each customer class.

2. Standard strength commercial customers include general, theaters, laundries, fairgrounds & dumping at WWTP.

3. Moderate strength commercial customers include hotels & motels.

4. High strength commercial customers include restaurants.

5. Class D commercial customers include schools.

Customer Class
% of COS
Revenue
Req't. Volume Treatment Customer
Related
Cost Classification Components Cost-of-Service
Revenue Req't.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 22
Current vs. Proposed Wastewater Rates
Currently, the City’s wastewater rates consist of a fixed monthly account charge for all customers, and a volumetric rate for commercial customers only (based on commercial class). The proposed rates collect 17 percent of revenue requirements from volumetric rates (commercial only) and 83 percent from fixed charges.

Figure shows the current and proposed wastewater rates through FY 2027/28.

FIGURE 19. CURRENT AND PROPOSED WASTEWATER RATES

SINGLE-FAMILY WASTEWATER CUSTOMERS
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
FIXED MONTHLY CHARGES (per unit)
Single Family/Duplex $55.00 $52.76 $53.82 $54.90 $56.00 $57.12 Multi Family $43.19 $37.04 $37.78 $38.54 $39.31 $40.10
Mobile Home $31.66 $37.04 $37.78 $38.54 $39.31 $40.10
Commercial $21.73 $32.62 $33.28 $33.95 $34.63 $35.32
NON-RESIDENTIAL VOLUMETRIC CHARGES PER TGAL 1
Commercial
Class A Usage2
$4.43 $4.52 $4.61 $4.70 $4.79 $4.89
Class B Usage3
$5.34 $5.68 $5.79 $5.91 $6.03 $6.15
Class C Usage4
$9.42 $13.31 $13.58 $13.85 $14.13 $14.41
Class D Usage5
$3.96 $4.10 $4.18 $4.26 $4.35 $4.44

1. Tgal = thousand gallon, or 1,000 gallons

2. Standard strength commercial customers include general, theaters, laundries, fairgrounds & dumping at WWTP.

3. Moderate strength commercial customers include hotels & motels.

4. High strength commercial customers include restaurants.

5. Class D commercial customers include schools.

Sewer Rate Schedule Current
Rates
Proposed Sewer Rates

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 23
Figure compares typical single-family monthly wastewater bills in adjusted rate plan.

Figure compares typical single-family monthly wastewater bills with other communities.

Figure 22 compares total water and wastewater bills for single-family monthly customers with other communities.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 24
FIGURE 20. MONTHLY SINGLE-FAMILY WASTEWATER BILL COMPARISON

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 25
FIGURE 21. MONTHLY SINGLE-FAMILY WASTEWATER BILL COMPARISON WITH OTHER COMMUNITIES FIGURE 22. MONTHLY SINGLE-FAMILY WASTEWATER BILL COMPARISON WITH OTHER COMMUNITIES

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 26

COMMERCIAL WASTEWATER CUSTOMERS
Figure compares typical class A-strength commercial monthly wastewater bills in year one of the adjusted rate plan, assuming the average 9 hcf monthly consumption.

FIGURE 23. MONTHLY CLASS A-STRENGTH COMMERCIAL WASTEWATER BILL COMPARISON

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 27
Section 5. RECOMMENDATIONS AND NEXT STEPS
Consultant Recommendations
This rate study reflects input from City staff and the City Council and is intended to comply with general industry standards and meet the requirements of Proposition 218. Public hearings and protest balloting requirements. Below are the next steps required to complete the adoption and implementation requirements. As a part of this process, NBS recommends the City take the following actions:
 Implement Recommended Levels of Rate Increases and Proposed Rates: Based on successfully meeting the Proposition 218 balloting requirements, the City Council should proceed with implementing the rate increases and rate structures recommended in this report for both utilities for the next five years. These rate increases are necessary to ensure the continued financial health of the City’s water and wastewater utilities, although maintaining the financial health of the water and wastewater utilities will be an ongoing process.
 Adopt Reserve Fund Targets: NBS recommends the City Council adopt and strive to meet the recommended reserve fund targets described in this report for each utility. The City should periodically evaluate reserve fund levels with the intent of achieving long-term goals.

Next Steps

ANNUALLY REVIEW RATES AND REVENUE
Any time an agency adopts new utility rates, particularly when facing significant capital costs and recent unforeseen expenditures, those new rates should be closely monitored over the next several years to ensure the revenue generated is sufficient to meet the annual revenue requirements. Changing economic and drought-related consumption patterns underscore the need for this review, as well as potential and unseen changing revenue requirements, particularly those related to capital improvement and repair and replacement costs that can significantly affect annual cash flows.

PRINCIPAL ASSUMPTIONS AND CONSIDERATIONS
In preparing this report and the recommendations included herein, NBS has relied on a number of principal assumptions and considerations with regard to financial matters, including the City’s utility budgets, capital improvement plans, the number of customer accounts, water consumption records, and other conditions and events projected to occur in the future. This information and these assumptions were provided by sources we believe to be reliable, although NBS has not independently verified this data.

While we believe NBS’ use of such information and assumptions is reasonable for the purpose of this report and its recommendations, some assumptions will invariably not materialize as stated herein or may vary significantly due to unanticipated events and circumstances. Therefore, the actual results can be expected to vary from those projected to the extent that actual future conditions differ from those assumed by us or provided to us by others.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 28
Section 6. APPENDIX A - ABBREVIATIONS &
ACRONYMS7
AAF
AF
Alt.

Avg.

AWWA
BMP
BOD
CA
CAP
CCF
CCI
COD
COM
Comm.

COS
COSA
CPI
CIP
DU
Excl.

ENR
EDU
Exp.

FP
FY
FY 2022/23
GPD
GPM
HCF
Ind.

Irr.

LAIF
Lbs.

MFR
MGD
MG/L
Mo.

Muni.

NH3
NPV
N/A
O&M
Prop 13
Prop 218
Req’t
Res.

7 This appendix identifies abbreviations and acronyms that may be used in this report. This appendix has not been viewed, arranged, or edited by an attorney, nor should it be relied on as legal advice. The intent of this appendix is to support the recognition and analysis of this report. Any questions regarding clarification of this document should be directed to staff or an attorney specializing in this particular subject matter.

Average Annual Flow
Acre Foot, equal to 435.6 HCF/CCF or 325,851 gallons
Alternative
Average
American Water Works Association
Best Management Practice
Biochemical Oxygen Demand
Customer
Capacity
Hundred Cubic Feet (same as HCF); equal to 748 gallons
Construction Cost Index
Chemical Oxygen Demand
Commodity
Commercial
Cost of Service
Cost of Service Analysis
Consumer Price Index
Capital Improvement Program
Dwelling Unit
Exclude
Engineering News Record
Equivalent Dwelling Unit
Expense
Fire Protection
Fiscal Year (e.g., July 1st to June 30th)
July 1, 2022 through June 30, 2023
Gallons per Day
Gallons per Minute
Hundred Cubic Feet; equal to 748 gallons or 1 CCF
Industrial
Irrigation
Local Agency Investment Fund
Pounds
Multi-Family Residential
Million Gallons per Day
Milligrams per Liter
Month
Municipal
Ammonia
Net Present Value
Not Available or Not Applicable
Operational & Maintenance Expenses
Proposition 13 (1978) – Article XIIIA of the California Constitution which limits taxes on real property to 1% of the full cash value of such property.

Proposition 218 (1996) – State Constitutional amendment expanded restrictions of local government revenue collections.

Requirement
Residential

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 29
Appendix A, continued
Rev.

RTS
R&R
SFR
SRF Loan
SWRCB

TSS / SS
V. / Vs. /vs.

WWTP
Revenue
Readiness-to-Serve
Rehabilitation & Replacement
Single Family Residential
State Revolving Fund Loan
State Water Resources Control Council
Total Suspended Solids
Versus
Wastewater Treatment Plant

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 30
Section 7. APPENDIX B – WATER RATE SUMMARY
TABLES

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 31
This page left blank intentionally.

Item # 10.

City of Grass Valley
Water and Wastewater Rate Study Report 32
Section 8. APPENDIX C – WASTEWATER RATE

SUMMARY TABLES

Item # 10.

RESOLUTION NO. R2023-48

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRASS VALLEY AMENDING

THE FEE SCHEDULE FOR WATER AND WASTEWATER USER RATES
WHEREAS, Grass Valley Municipal Code Section 13.04.280 states that water rates shall be established and fixed from time to time by resolution of the City Council; and WHEREAS, Grass Valley Municipal Code Section 13.04.290 defines the criteria for setting water rates as being at a level that will recover all costs of operating their respective systems; and WHEREAS, Grass Valley Municipal Code Section 13.12.080 states that wastewater rates shall be established and fixed from time to time by resolution of the City Council and defines the criteria for setting wastewater rates as being at a level that will recover all costs of operating their respective systems; and
WHEREAS, the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, and other charges by this resolution are for the purpose of meeting operating expenses, including employee wage rates and fringe benefits; purchasing or leasing supplies, equipment, or materials; meeting financial reserve needs and requirements; or obtaining funds for capital projects necessary to maintain service within respective service areas (water and wastewater); and
WHEREAS, the City Council of the City of Grass Valley has established a Fee Schedule for fiscal year 2023/24 as part of the Fiscal Year Budget approval process, that includes all fees of the City and a policy for the review and approval of City fees and charges; and WHEREAS, the City has completed a comprehensive review to calculate the costs of operating and maintaining the water and wastewater systems, as documented in the NBS Government Finance Group report titled “Water & Wastewater Rate Studies”; and WHEREAS, on May 9, 2023, the City held a public meeting to discuss the Rate Studies and proposed adjustments to water and wastewater user rates; and WHEREAS, on June 8 2023, the City mailed notices to all property owners and customers of record, notifying them of the proposed user rate adjustments and detailing the available protest procedures; and
WHEREAS, on July 25, 2023, the City held a noticed public hearing to consider an adjustment in its water and wastewater user fees. and proposed maximum fees scheduled for implementation over a five year period; and
WHEREAS, at the July 25, 2023 public hearing, the City considered public testimony and a tabulation of protests and a majority protest was absent; and

NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRASS VALLEY, as follows:

1. That the foregoing statements are true and correct.

2. That the NBS “Water & Wastewater Rate Studies” reports are the basis for the fees.

Item # 10.

3. That the Fee Schedule for fiscal year 2023/24 is hereby amended for the water user fees shown in Exhibit “A” and wastewater user fees as shown in Exhibit “B”

4. That the Fee Schedule for proposed maximum water and wastewater rates for fiscal years 2024/25 through 2027/28 are hereby adopted as shown in the respective Exhibits “A” and “B”.

5. That this amendment to water and wastewater user fees shall be effective starting on October 1, 2023 and subsequently on July 1st for each fiscal year thereafter.

PASSED AND ADOPTED as a Resolution by the City Council of the City of Grass Valley at a regular meeting thereof held on the 25th day of July 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Jan Arbuckle, MAYOR
APPROVED AS TO FORM: ATTEST:
__________________________________ _______________________________ Michael G. Colantuono, CITY ATTORNEY Taylor Day, CITY CLERK

Item # 10.

CITY OF GRASS VALLEY

WATER RATE STUDY
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28

FIXED METER CHARGES
Monthly Fixed Service Charges:
5/8 inch $30.06 $32.16 $34.41 $36.82 $39.40
3/4 inch $37.09 $39.69 $42.47 $45.44 $48.62
1 inch $51.14 $54.72 $58.55 $62.65 $67.04

1.5 inch $86.29 $92.33 $98.79 $105.71 $113.11
2 inch $128.46 $137.45 $147.07 $157.36 $168.38
3 inch $578.30 $618.78 $662.09 $708.44 $758.03
4 inch $894.60 $957.22 $1,024.23 $1,095.93 $1,172.65
6 inch $1,773.19 $1,897.31 $2,030.12 $2,172.23 $2,324.29 8 inch $2,827.51 $3,025.44 $3,237.22 $3,463.83 $3,706.30

COMMODITY CHARGES
Rate per Tgal1 of Water Consumed:

Residential Uniform Rate $4.17 $4.46 $4.77 $5.10 $5.46
Non-Residential Uniform Rate $4.17 $4.46 $4.77 $5.10 $5.46 Temporary Meter Uniform Rate $4.17 $4.46 $4.77 $5.10 $5.46

1. Tgal = thousand gallon, or 1,000 gallons
Water Rate Schedule Proposed Maximum Rates

Item # 10.

CITY OF GRASS VALLEY

SEWER RATE STUDY
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
FIXED MONTHLY CHARGES (per unit)
Single Family/Duplex $52.76 $53.82 $54.90 $56.00 $57.12 Multi Family $37.04 $37.78 $38.54 $39.31 $40.10
Mobile Home $37.04 $37.78 $38.54 $39.31 $40.10
Commercial $32.62 $33.28 $33.95 $34.63 $35.32
NON-RESIDENTIAL VOLUMETRIC CHARGES PER TGAL 1
Commercial
Class A Usage2 $4.52 $4.61 $4.70 $4.79 $4.89
Class B Usage3 $5.68 $5.79 $5.91 $6.03 $6.15
Class C Usage4 $13.31 $13.58 $13.85 $14.13 $14.41
Class D Usage5 $4.10 $4.18 $4.26 $4.35 $4.44

1. Tgal = thousand gallon, or 1,000 gallons

2. Standard strength commercial customers include general, theaters, laundries, fairgrounds & dumping at WWTP.

3. Moderate strength commercial customers include hotels & motels.

4. High strength commercial customers include restaurants.

5. Class D commercial customers include schools.

Sewer Rate Schedule Proposed Maximum Rates

Item # 10.

City of Grass Valley
City Council
Agenda Action Sheet
Title: A Public Hearing to discuss Fire Resiliency and Vegetation Management concerns and consider a Resolution No. 2023-49 of the City Council of the City of Grass Valley calling a special election on November 7, 2023, to consider a transactions and use tax
CEQA: Not a Project.

Recommendation: That Council 1) conduct a public hearing regarding Fire and Vegetation Management, as well as a possible sales tax; 2) declare a fiscal emergency due to the lack of necessary funding for fire personnel and land management required to combat wildfires and extreme weather conditions as stated in Resolution No. 2023-49; and adopt Resolution No. 2023-49 of the City Council of the City of Grass Valley calling a special election on November 7, 2023, to consider a transactions and use tax.

Prepared by: Timothy M. Kiser, City Manager
Council Meeting Date: July 25, 2023 Date Prepared: July 17, 2023 Agenda: Public Hearing
Background Information: The purpose of this gathering is to discuss Fire and Vegetation Management and the potential implementation of a general sales tax to support these areas. Additionally, the focus will be on addressing public safety risks that Grass Valley may face due to extreme weather events and wildfires.

During the hearing, three crucial topics will be discussed: Fire Resiliency, Vegetation Management, and Sales Tax. Fire Resiliency involves initiatives to improve the city's ability to handle fire incidents effectively. Proposed measures include increasing firefighter staffing and adding another fully staffed fire engine company. These efforts aim to enhance efficiency in operations, allow for simultaneous engagement in essential tasks, and provide resilience, flexibility, and adaptability during critical events. These measures are necessary to ensure the safety and well-being of our community in the face of fire-related challenges.

During the discussion, the topic of Vegetation Management will be emphasized as a crucial component in protecting our City against the devastating effects of wildland fires. This strategy encompasses a range of approaches, including fortifying the areas surrounding essential infrastructure such as schools, hospitals, and water treatment plants. The objective is to reduce fuel and vegetation loads throughout the City and its surrounding regions (sphere of influence), thereby safeguarding the City. Additionally, measures will be taken to prevent human-caused fires in the Wildland Urban Interface

Item # 11.
(WUI), specifically those resulting from illegal camping activities. The discussion will also explore the creation of temporary refuge areas and other vegetation mitigations.

Finally, the discussion will center on a proposed ½ cent sales tax to fund fire resiliency and vegetation management. This would be in addition to the City's current sale tax (Measure E) that funds fire apparatuses (ladder truck, fire engines, etc.) and approximately a third of the current Fire Department. The proposed general Sales tax would generate approximately $3.4 million and would sunset after ten years. If approved by the Council and voters, staff recommends the Council allocate 50% of the general tax revenue from the sales tax to Vegetation Management and 50% of the general tax revenue on Fire Resiliency.

If the City Council adopts the proposed Resolution, Council would be declaring a fiscal emergency and call for a special election on November 7, 2023, and to consider the following ½ cent transactions and use tax measure:

Measure __
Shall the measure for such purposes as reducing the risk of catastrophic wildfire and extreme weather by funding additional firefighters, vegetation management, and
emergency evacuation planning, or for other general
governmental uses, by adopting a general, 1/2-cent sales tax raising about $3.4 million yearly, with annual audits and a citizens’ oversight committee, effective for 10
years or until voters end it sooner, be adopted?
Yes 
No 
For the Council to call a special election on the proposed general sales tax for this November, it must declare the fiscal emergency and adopt the proposed resolution by a unanimous vote of the City Council. The proposed resolution and ordinance are attached for Council’s review and consideration.

Council Goals/Objectives: The execution of this action attempts to achieve Strategic Goal #5 – High Performance Government and Quality Service.

Fiscal Impact: Fiscal Impact would be limited to paying for the Special Election, which could easily exceed $100,000, but there are sufficient funds in City reserves if the City Council deems this issue to be a fiscal emergency.

Funds Available: Yes Account #: General Fund Reserves
Reviewed by: Tim Kiser, City Manager
Attachments: Resolution 2023-49 and proposed Ordinance

Item # 11.
316856.v3
RESOLUTION No. 2023-49

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GRASS VALLEY CALLING A SPECIAL ELECTION ON
NOVEMBER 7, 2023 TO CONSIDER A TRANSACTIONS

AND USE TAX
WHEREAS, the City Council desires to submit a general transactions and use tax ordinance (the “Ordinance”) for voter approval; and
WHEREAS, the Ordinance imposes a general tax (“Tax”), the revenues from which can fund firefighting personnel, wildfire risk land management, other fire safety measures, or any lawful purpose of the City; and
WHEREAS, the City Council desires to hold a special municipal election on November 7, 2023 (the “Election”); and
WHEREAS, Article XI of the Grass Valley City Charter provides that all elections shall be governed by the provisions of the Elections Code for the holding of elections in general law cities except as otherwise provided by the City Charter; and WHEREAS, the City Council requests services from the Nevada County Clerk for the conduct of that election.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRASS VALLEY AS FOLLOWS:

1. CALL OF SPECIAL MUNICIPAL ELECTION. Pursuant to Article XI of the City Charter and the laws of the State of California applicable to general law cities, the City Council of the City of Grass Valley hereby calls and notices a Special Municipal Election to be held on Tuesday, November 7, 2023, to consider the following measure:

Measure __
Shall the measure for such purposes as reducing the risk of catastrophic wildfire and extreme weather by funding additional firefighters, vegetation management, and emergency evacuation planning, or for other general governmental uses, by adopting a general, 1/2-cent sales tax raising about $3.4 million yearly, with annual audits and a citizens’ oversight committee, effective for 10 years or until voters end it sooner, be adopted? Yes 
No 

Item # 11.
316856.v3
This question requires the approval of a simple majority (50% plus 1) of those voting and the referenced Ordinance is attached hereto as Exhibit 1 and incorporated in this Resolution by this reference.

2. REQUEST TO CONDUCT ELECTION AND CANVASS
RETURNS. The Nevada County Board of Supervisors is hereby requested to authorize the Nevada County Registrar of Voters to render services necessary for the conduct of the Special Municipal Election this Resolution calls. Pursuant to Elections Code section 10402, the City Council hereby requests that the Nevada County Board of Supervisors consolidate the Special Municipal Election with any other election the Registrar of Voters is to administer on November 7, 2023 and order the Special Municipal Election to be conducted by the Nevada County Registrar of Voters. The City Council acknowledges and requests that the consolidated election be held and conducted in the manner prescribed in Elections Code section 10418. The ballots to be used in the election shall be in form and content as required by law.

The City Clerk is authorized and directed to work with the Nevada County Registrar of Voters and to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia as needed to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. Pursuant to Elections Code section 10002, the City will reimburse Nevada County for the actual cost incurred in conducting the election upon receipt of a bill stating the amount due.

The notice of the time and place of holding the election is hereby given, and the City Clerk and Nevada County Registrar of Voters are authorized to give further notice of the election, as required by law, and the City Clerk shall forward a certified copy of this resolution to the Clerk of the Nevada County Board of Supervisors not later than 88 days before November 7, 2023.

3. IMPLEMENTATION. The City Clerk is directed to file certified copies of this Resolution with the Nevada County Board of Supervisors, with a copy to the Nevada County Registrar of Voters, pursuant to Elections Code section 10402. The City Clerk is further authorized and directed to perform all other acts necessary or required by law to implement this Resolution and related to the Special Election.

4. IMPARTIAL ANALYSIS. That the City Council directs the City Clerk to transmit copies of the measures to the City Attorney. The City Attorney shall prepare an impartial analysis of each measure showing the effect of the measure on the existing law and the operation of the measure. The impartial analysis shall be filed by the date set by the City Clerk.

5. BALLOT ARGUMENTS. Members of the City Council are hereby authorized to prepare a written argument, not to exceed 300 words, in favor of the measure on behalf of the City Council, as specified in section 9282 of the California Elections Code.

Item # 11.
316856.v3
Arguments against the Measure may not exceed 300 words and must be submitted to the City Clerk in compliance with sections 9282 and 9283 of the California Elections Code by the deadline established by the City Clerk.

Rebuttal arguments are authorized and may not exceed 250 words and must be submitted to the City Clerk as specified in section 9285 of the California Elections Code.

6. FISCAL EMERGENCY. The Council finds that unless it takes urgent action by placing this general tax measure on the ballot at the November 7, 2023 special election, the Grass Valley Fire Department will lack necessary funding for fire personnel and land management required to combat wildfires and extreme weather conditions and to fund other city services. Accordingly the City Council hereby declares an emergency pursuant to the California Constitution, article XIII C, section 2, subdivision (b).

7. CEQA. The adoption of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq. (“CEQA”) and 14 Cal. Code Reg. §§ 15000 et seq. (“CEQA Guidelines”). The calling and noticing of a Special Municipal Election is not a project within the meaning of CEQA Guidelines section 15378, subsection (b)(4) [funding of unspecified projects] and section 15061, subsection (b)(3) [common sense exemption]. While some expenditures of the proceeds of the tax might have impacts on the environment, it would be unduly speculative to identify and evaluate those impacts nos. That analysis will be more usefully done when the projects to be funded are selected and defined.

8. CERTIFICATION. The City Clerk of the City of Grass Valley shall certify to the passage and adoption of this resolution and its approval by the City Council and shall cause the same to be listed in the records of the City.

9. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this Resolution or its application to any person or circumstance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution or its application to other persons and circumstances. The City Council of the City of Grass Valley hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional and, to that end, the provisions hereof are hereby declared to be severable.

10. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption as a measure affecting an election.

PASSED AND ADOPTED by a unanimous vote of all members of the City Council of the City of Grass Valley present as required California Constitution, article XIII C, section 2, subdivision (b) and by a two-thirds vote of all its members as required by Revenue & Taxation Code section 7285.9, on this July 25, 2023, by the following vote:

Item # 11.
316856.v3
AYES: Councilmembers
NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
____________________________________
Jan Arbuckle, Mayor
ATTEST:
________________________________
Taylor Day, City Clerk
APPROVED AS TO FORM:
________________________________
Michael G. Colantuono, City Attorney

Item # 11.
316754.v3 1
ORDINANCE NO. 826

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRASS VALLEY IMPOSING A 1/2-CENT TRANSACTIONS AND

USE TAX FOR GENERAL GOVERNMENTAL USE TO BE

ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX

AND FEE ADMINISTRATION, SUBJECT TO THE VOTER

APPROVAL
THE PEOPLE OF GRASS VALLEY, CALIFORNIA, DO ORDAIN AS FOLLOWS:

SECTION 1. TITLE.

This ordinance shall be known as the 2023 Grass Valley Transactions and Use Tax Ordinance. The City of Grass Valley hereinafter shall be called “City.” This ordinance shall be applicable in the incorporated territory of the City.

SECTION 2. OPERATIVE DATE.
“Operative date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance.

SECTION 3 PURPOSE.

This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part

1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

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D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.

SECTION 4. CONTRACT WITH STATE.

Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

SECTION 5. TRANSACTIONS TAX RATE.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.

SECTION 6. PLACE OF SALE.

For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

SECTION 7. USE TAX RATE.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 0.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

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SECTION 8. ADOPTION OF PROVISIONS OF STATE LAW.

Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

SECTION 9. LIMITATIONS ON ADOPTION OF STATE LAW AND
COLLECTION OF USE TAXES.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

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B. The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

SECTION 10. PERMIT NOT REQUIRED.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance.

SECTION 11. EXEMPTIONS AND EXCLUSIONS.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his or her agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a

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declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.

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5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

SECTION 12. TERM.

The tax imposed by this ordinance shall be effective until 10 years after it is first collected, unless sooner repealed by voters.

SECTION 13. AMENDMENTS.

All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.

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SECTION 14. INDEPENDENT OVERSIGHT.

A five-member Independent Citizens’ Advisory Committee will be created and shall meet annually to review the expenditure of revenues generated by the tax imposed by this ordinance and to make recommendations to the City Council regarding those expenditures. Members of the committee will be appointed to terms of not more than 4 years by the City Council. The Independent Citizens’ Advisory Committee shall meet publicly on at least a quarterly basis to review all revenues and expenditures of the transactions and use tax imposed by this ordinance, review annual audit reports related to the tax, and make at least one written annual report to the City Council at a public meeting summarizing the Independent Citizens’ Advisory Committee’s findings and including any appropriate recommendations. The minutes of the meetings of Independent Citizens’ Advisory Committee shall be provided to the City Council and placed on the next available regular City Council meeting agenda for informational purposes.

SECTION 15. AUDIT AND REVIEW.

The proceeds of the tax imposed by this ordinance, as well as the expenditure thereof, shall be audited annually by an independent accounting firm. The City Council shall discuss the results of such audit at a meeting of the City Council that is open to the public.

The report of such audit shall be posted on the City’s website.

SECTION 16. ENJOINING COLLECTION FORBIDDEN.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part

1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

SECTION 17. SEVERABILITY.

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

SECTION 18. EFFECTIVE DATE.

This ordinance shall take effect 10 days after the date the vote is declared by the City Council.

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SECTION 19. CERTIFICATION; PUBLICATION.

Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this ordinance and shall cause it to be published according to law and transmitted to the California Department of Tax and Fee Administration.

PASSED AND ADOPTED by the City Council of the City of Grass Valley, State of California, on [date], by the following vote:

AYES:

NOES:

ABSENT:
_______________________
Jan Arbuckle, Mayor
Attest:
_____________________
Taylor Day, Deputy City Clerk
Approved as to Form:
_________________________
Michael G. Colantuono, City Attorney

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