Agenda packet — Hanford City Council, June 4, 2024 (part 1 of 3)

City Council Meeting
Agenda
June 4, 2024
7:00 PM – Regular Meeting
Council Chambers
400 N. Douty St.

Council Members will meet in-person in the Council
Chambers. The meeting will also be lived streamed on the City’s website: http://livestream.hanford.city/

4:00 PM CALL TO ORDER STUDY SESSION AND CLOSED SESSION:

ROLL CALL BY THE CITY CLERK:

PUBLIC COMMENT:

Study Sessions are considered Special Meetings under the Brown Act. Accordingly, comments from the public are limited to items listed on the agenda (GC 54954.3a). Public Comment will be accepted during each agenda item. A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

STUDY SESSION:

A. Council review of candidates for the upcoming District B vacant seat and Interviews of selected applicants.

CLOSED SESSION FOR DISCUSSION OF THE FOLLOWING:

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (GC 54956.9)(d)(1)) Claim for Damages.

B. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION (54956.9 (d)(2)) Potential litigation over right-of-way abandonment.

C. CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION (54956.9 (d)(2)) Litigation threatened over development project site claim.

CALL TO ORDER REGULAR SESSION:

ROLL CALL:

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INVOCATION:

FLAG SALUTE:

RECOGNITION:

A. Badge Pinning Ceremony and oath of office for the promotion of Sergeant Raymond Dias, Sergeant Jarred Cotta, Corporal Edgar Aguayo, Corporal Troy Smith and Corporal Rolando Jaime.

CLOSED SESSION ACTION REPORT:

COUNCIL REPORTS/GENERAL REPORTS:

Brief information-only reports from City Council and/or Staff, including committee reports and reports by City Council related to meetings attended at City expenses (AB1234).

PUBLIC COMMENT:

This is the time for citizens to comment on subject matters within the jurisdiction of the Hanford City Council. This is also the public’s opportunity to request an item from the Consent Calendar be pulled for discussion purposes or to comment on any item on the agenda. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). A maximum of three minutes is allowed for each speaker. Please begin your comments by stating your name and providing your city of residence.

CONSENT CALENDAR:

Consent Calendar items are considered routine and will be enacted in one motion. There will be no separate discussion of these matters unless a request is made and then the item will be removed from the Consent Calendar to be discussed and voted upon by a separate motion.

A. Procedural Waiver: Waive reading in full of resolutions and ordinances and approval and adoption of same by reading title the only.

B. City Clerk: Approval of the appointment of Santiago Rodriguez to the Parks and Rec Commission Alternate seat with an unexpired term ending on 12/31/2026.

C. City Clerk: Adoption of Resolutions 24-14-R and 24-15-R, authorizing the Consolidation of the Regular Municipal Election for Hanford City Council Districts B and C on Tuesday, November 5, 2024, and request the Kings County Board of Supervisors to authorize the Kings County Registrar of Voters to conduct the election.

D. City Attorney: Approval of the First Amendment to the lease between the City of Hanford and Consolidated Electrical Distributors, Inc., also known as MSI, for the property located at 426 W. Lacey Blvd.

E. Human Resources: Approval of the annual City of Hanford Salary Schedules, pursuant to the California Code of Regulations (CCR) 570.5.

F. Community Development:

Approval of the second reading and Adoption of Ordinance No. 24-05, amending Chapter 3.28 of the Hanford Municipal Code to allow for the reestablishment of the Central Parking and Business Improvement Area Advisory Board as required by the Hanford Municipal Code in order to bring the Board's make-up in line with other City Committees/Commissions.

G. Parks and Community Services: Approval of the naming and dedication of the Freedom

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Park Playground in memory of Dan Chin, consistent with the Council Adopted Naming Policy.

H. Public Works: Authorization to advertise for bids for the FY25 Annual Concrete Improvement Project and pre-authorize the City Manager to award and execute the contract on behalf of the City to the lowest responsible bidder for an amount not to exceed $130,000.00
I. Public Works: Public Works: Approval of a Purchase Order change order (PO 22400342) in the amount of $4,000 with Corcoran Sawtelle & Rosprim, Inc to replace stainless steel sheet on a water truck; for a Purchase Order grand total of $53,995.

J. Public Works: Approval of the Notice of Completion for the FY 22/23 Civic Auditorium Acoustic Ceiling Texture Replacement, Hardwood Flooring Installation, and Interior Painting Project.

K. Utilities and Engineering: Approval of a Grant Deed from San Joaquin Valley Homes Tract 881 Unit 1, Lots 45 & 46 and Authorization for the City Clerk to record said documents with the Kings County Recorder’s Office for the purpose of accepting Landscape Lot dedications.

L. Utilities and Engineering: Authorization to enter into a Reimbursement Agreement for $25,000 in Preliminary Engineering Services with Union Pacific Railroad Company for design of the at-grade crossing on East Lacey Boulevard.

M. Utilities and Engineering: Approval of two (2) Change Orders, totaling $84,340, for East Lacey Boulevard Preliminary Engineering Services with QK to provide NEPA and Traffic Analysis services as required by new state and federal funding secured for the project.

N. Finance: Approval of a professional services agreement with Meeder Public Funds, Inc. to provide investment management services at an annual fee of approximately $58,000 annually for up to five years.

O. Finance: Presentation of the Report on the City of Hanford's Audit of the Financial Statements for the year ending June 30, 2023 (Fiscal Year 2023) P. Finance: Approve a change order request in the amount of $6,800 for the purchase of supplies from HD Supply, Inc in Fiscal Year 2023/2024 (FY 23/24).

PUBLIC HEARING:

A. Finance: Public Hearing and Adoption of Resolution 24-13-R to approve the comprehensive Master Fee Schedule for Fiscal Year 2024-25 which includes proposed new fees, deletions of fees and increases/adjustments to existing fees.

GENERAL BUSINESS:

A. Utilities and Engineering: Adoption of Resolution No. 24-12-R, designating a “Project List” for Road Maintenance and Rehabilitation Account (RMRA) gas tax funding for Fiscal Year 2024/25; and Appropriation of Hanford's estimated RMRA funding projection of $1,507,211.

B. Utilities and Engineering: Approval of Net Energy Metering (NEM) and Interconnection Agreement(s) with Southern California Edison Company (SCE) and Authorization of payment of up to $350,000 to SCE for the design and construction of SCE-owned

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facilities to accept power generated from a proposed City-ownedSolar Energy Generating Facility at the City’s Wastewater Treatment Facility (WWTF) located at 10555 Houston Avenue and Appropriation of $350,000 from the Wastewater Treatment Plant/Sewer Fund.

C. Administration: Adoption of Resolution No. 24-16-R appointing a replacement council member to the District B City Council Seat for the remainder of the unexpired term.

D. Administration: Recognition of Departing Council Member Kalish Morrow ITEMS FOR FUTURE AGENDAS:

At this time, any Council Member may ask a question for clarification or may request a matter, which is not otherwise scheduled on a City Council agenda, to be placed on a future agenda. The Council Member referring the item shall provide sufficient information as to the nature of the item. The City Council, by concurrence of a majority, may direct the City Manager to put the item on a future agenda. (GOV. CODE SEC. 54954.2) A. Council Future Agenda Items
B. Upcoming Events and Important Dates:

June 11: Special City Council Meeting
June18: Regular City Council Meeting
June 19: General Election Candidate Information Night, presented by the Kings County Elections Department More Info
July 2: Regular City Council Meeting
July 16: Regular City Council Meeting
ADJOURNMENT:

Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available to public inspection in the City Clerk’s Office located at 319 N. Douty Street, Hanford, California 93230, during normal business hours. Such agendas are also available at the city’s website, www.cityofhanfordca.com subject to staff’s ability to post the agenda before the meeting. If you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in this meeting, please contact the City Clerk’s office, 559-585-2515, 319 N. Douty Street, Hanford, California 93230, at least 2 days prior to the meeting {28 CFR 35.102.35.104 ADA Title II}

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4.A.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: STUDY SESSION

SUBJECT:

Council review of candidates for the upcoming District B vacant seat and Interviews of selected applicants.

RECOMMENDATION:

Recommendation: Staff recommends that the City Council select candidates to be interviewed and conduct interviews of the selected candidates for the purpose of making a recommendation for appointment of the preferred candidate for the District B seat via resolution during the General Business Item.

BACKGROUND:

At the May 23, 2024, special meeting of the City Council, the council elected to engage in a process to consider appointing a resident from District B to fill the pending vacancy and directed staff to move forward with the approved process. The City Clerk listed the vacancy on the City’s website and social media accounts soliciting resumes. The application period closed at 4pm on May 31, 2024. A total of nine (9) resumes were received by the deadline. During the Clerk review of the resumes, it was determined that two (2) of the candidates did not live within the District B boundaries or meet the requirements to be a Council member. The Clerk confirmed that the seven (7) remaining applicants met the requirements to serve on the City Council and represent District B.

At the opening of Council discussion on this item, each Council member has the option of selecting up to two (2) applicants to be interviewed. Once the pool of candidates is selected by the Council, the interview portion of the process will commence.

For the interview process, the applicants will then be called in alphabetical order, by last name, and given up to five (5) minutes to introduce themselves and describe why they should be selected to fill the vacant seat, and provide the City Council with any additional information that they feel relevant.

The City Council will ask the same questions of the applicants for which applicants will have 90 seconds to respond to each question.

At the conclusion of the interviews, the Study Session will adjourn and Council will undertake a process of nominating candidates and voting on the nominations until a majority vote is reached on a candidate during the General Business section later in the evening. The recommended candidate will be appointed during the General Business section of the June 4, Regular Meeting when the City Council adopts a resolution Confirming the appointment of the new City Councilmember, and the City Clerk administers the Oath of Office.

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FISCAL IMPACT:

ATTACHMENTS:

None

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14.B.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of the appointment of Santiago Rodriguez to the Parks and Rec Commission Alternate seat with an unexpired term ending on 12/31/2026.

RECOMMENDATION:

Recommendation: That the Mayor, with approval of the full City Council, appoint Satiago Rodriguez to the Parks and Rec Commission to fill an unexpired term ending 12/31/2026.

BACKGROUND:

A Parks and Rec Commission vacancy occurred on November 1, 2023. After recruitment efforts and Council direction, the Mayor and the Parks & Community Services Director conducted interviews on May 9, 2024. The Mayor recommends appointing Mr. Santiago Rodriguez to the Parks and Rec Commission with an unexpired term ending on 12/31/2026.

Section 2.20.030 of the City of Hanford Municipal Code states that:

"Members of all commissions shall be appointed by the mayor with the approval of a majority of the members of the city council."
FISCAL IMPACT:

ATTACHMENTS:

None

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14.C.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Adoption of Resolutions 24-14-R and 24-15-R, authorizing the Consolidation of the Regular Municipal Election for Hanford City Council Districts B and C on Tuesday, November 5, 2024, and request the Kings County Board of Supervisors to authorize the Kings County Registrar of Voters to conduct the election.

RECOMMENDATION:

Recommendation: That the Council, by motion, adopt, Resolutions 24-14-R and 24-15-R authorizing the Consolidation of the Regular Municipal Election for Hanford City Council Districts B and C on Tuesday, November 5, 2024, and request the Kings County Board of Supervisors to authorize the County Registrar of Voters to conduct the election.

BACKGROUND:

The City of Hanford consolidates its municipal elections with the statewide general election, and the Kings County Department of Elections will canvas the returns and certify the results. The Elections Department has done an efficient and effective job for the City of Hanford in previous Elections. They have the appropriate equipment to prepare and mail the ballots, count the results, and certify the election. The Elections Department also proposed to assume the candidate filing responsibilities and duties for any person interested in filing for Districts B and C seats, except for the FPPC requirements. In past practice, the City Clerk was responsible for the nomination paperwork for candidates.
• Resolution 24-14- R calls for the holding of a General Municipal Election to be held on Tuesday, November 5, 2024, for the election of certain officers as required by the provisions of the laws of the State of California relating to general law cities and requesting the Board of Supervisors of the County of Kings to consolidate with the Statewide General Election. • Resolution 24-15-R is the request to approve the Kings County Registrar of Voters' provision of specific services to the City of Hanford. These services are crucial for a more streamlined November 5, 2024, Municipal Election process and include specific services.

The nomination period for the November 5, 2024, election begins on Monday, July 15, 2024, and closes on Friday, August 9, 2024, unless an incumbent eligible for re-election does not file nomination documents before 5:00 p.m. on August 9, 2024. Should an incumbent not file nominating documents, such as will be the case in both City of Hanford districts, the filing period will be extended to August 14, 2024, at 5:00 p.m. Candidates will obtain and file nomination documents at the Kings County Elections Department.

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FISCAL IMPACT:

The County incurs the cost of the election, but will be reimbursed by the City for the services performed. The cost for the November election is estimated to be $44,750 - $57,250. This estimate is based on historical election data and current rates for supplies and services that are subject to change. It does not factor in the tax and shipping cost for supplies.

ATTACHMENTS:

1. Kings County General Election Estimate

2. Resolution 24-14-R

3. Resolution 24-15-R

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RESOLUTION NO. 24-14-R

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD,

CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE ELECTION

OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISION OF THE LAWS OF

THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES AND

REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF KINGS TO

CONSOLIDATE WITH THE STATEWIDE GENERAL ELECTION
WHEREAS, under the provision of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 5, 2024, for the election of Municipal Officers;

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HANFORD, CALIFORNIA, DOES RESOLVE, DECLARE DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, the Board of Supervisors of the County of Kings is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 5, 2024, for the purpose of electing two (2) members of the City Council for the full term of four years, which ends November 2028 for the following districts:

DISTRICT B

DISTRICT C
SECTION 2. That the Board of Supervisors is requested to issue instruction to the County Election Department to take all steps necessary for the holding of the consolidated election. The consolidated election will be held and conducted in the manner prescribed in California Elections Code Section 10418.

SECTION 3. That the County Election Department is hereby authorized and requested to canvass the returns of said General Municipal Election and to certify such canvass of the votes so cast, to the City Clerk. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

SECTION 4. That the City of Hanford recognizes that additional costs will be incurred by the County and shall reimburse the County for services performed when the work is completed and upon presentation to the City of properly approved bill.

SECTION 5. The County Registrar of Voters is hereby authorized and directed to give all Notices and perform all advertising as required by law and perform or cause to be performed all the duties and functions in the conduct of the election as required by State law.

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SECTION 6. The City Clerk is hereby authorized and directed to certify the adoption of this Resolution, transmit to and file with the Board of Supervisors and the County Election Department of the County of Kings.

PASSED, ADOPTED, AND APPROVED this 4th day of June, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
___________________________________
Travis Paden
Mayor of the City of Hanford
ATTEST:
____________________________
Natalie Corral
City Clerk

STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

CITY OF HANFORD )
I, Natalie Corral, City Clerk of the City of Hanford, do hereby certify the foregoing Resolution was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the ____ day of __________________, 2024.

Date: ____________________ ___________________________________ City Clerk

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1 RESOLUNTION NO. 24-15-R

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HANFORD

REQUESTING THE KINGS COUNTY REGISTRAR OF VOTERS TO RENDER

SPECIFIC SERVICES TO THE CITY OF HANFORD
WHEREAS, pursuant to the Elections Code, the governing body of any City may, by Resolution, request the Board of Supervisors of the County to permit the County Elections Official to render specified services to the City relating to the conduct of an election; and WHEREAS, the City of Hanford has ordered an election be held for Districts B and C.

NOW, THEREFORE, BE IT RESOLVED
The Board of Supervisors of Kings County is hereby requested to permit the County Registrar of Voters to render services to the City of Hanford relating to the conduct of the November 5, 2024, Municipal Election as follows:

1. Distribute and file nomination papers and candidate statements for City offices.

2. Make all required publications.

3. Prepare, print, and mail to the qualified electors of the City of Hanford sample ballots and voter pamphlets.

4. Provide vote by mail ballots for said Municipal Election for use by the qualified electors who may be entitled to vote by mail ballots in the manner provided by law.

5. Order consolidation of precincts, appoint precinct boards, designate polling places, and instruct election officer concerning their duties.

6. Conduct and canvass the returns of the election and certify the votes cast to the City.

7. Receive and process Vote by Mail voter applications.

8. Prepare, print, and deliver to the polling places supplies, including the official ballots and a receipt for said supplies.

9. Recount votes, if requested, in accordance with State law.

10. Conduct the above election duties in accordance with the Voting Right Act of 1975.

11. Perform all other pertinent services required to perform for said election other than the requirements of the Fair Political Practices Commission; said Fair Political Practices Commission requirements to be performed by the City Clerk.

The City Clerk is hereby authorized and directed to transmit certified copies of this Resolution to the Board of Supervisors and to the County Registrar of Voters.

PASSED, ADOPTED, AND APPROVED this 4th day of June 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

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2 _________________________________
Travis Paden
Mayor of the City of Hanford
ATTEST:
______________________________________________________
Natalie Corral
City Clerk

STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

Date:_____________
______
City Clerk

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14.D.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of the First Amendment to the lease between the City of Hanford and Consolidated Electrical Distributors, Inc., also known as MSI, for the property located at 426 W. Lacey Blvd.

RECOMMENDATION:

Recommendation: It is recommended that the City Council approve the Consolidated Electrical Distributors, Inc. First Lease Amendment.

Recommended Motion: I move to approve the Consolidated Electrical Distributors, Inc. First Lease Amendment.

BACKGROUND:

The City and Consolidated Electrical Distributors, Inc. (CED) previously entered into a Lease Agreement (Lease) for CED’s lease of the 426 W. Lacey Blvd. property owned by the City. A copy of Lease is attached.

CED has requested that the insurance provisions of the Lease be modified. CED explained that it is a billion-dollar company that has over 1,100 sites nationwide, and it maintains $500 million in property coverage for its owned and leased properties. CED informed the City that it has endured significant changes to the insurance industry and that those changes have caused CED to maintain a $100,000.00 deductible on its property coverage insurance, which exceeds $25,000.00 deductible limit established in the Lease. The tenant has requested that the insurance provisions of the Lease be modified to match the insurance that it maintains.

The provisions that CED seeks to change were carried over from the prior tenant, Goodwill Enterprises.

CED has requested the following significant changes to the Lease:
• Eliminate the $25,000 deductible for property insurance. • Delete requirements for business interruption insurance and coverage for debris removal and enforcement of laws regarding reconstruction or replacement of undamaged portions of the premises required to be demolished or removed due to enforcement of any laws arising from a covered loss.

The tenant will indemnify, defend, and hold the City harmless with respect to such occurrences in lieu of maintaining this additional coverage under its property insurance. In other words, the tenant will continue to maintain property coverage, but the insurance will not cover the breadth of issues that are identified in the Lease’s original provisions.

A copy of the existing Lease and CED’s letter to the City explaining its desire to amend the Lease are attached.

FISCAL IMPACT:

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Non

ATTACHMENTS:

1. 24-0522 Transmittal letter to City of Hanford for First Lease Amendment (426 W Lacey Blvd, Hanford, CA)

2. 2024.05.24 1st Lease Amendment (426 W Lacey Blvd, Hanford, CA)

3. Lease agreement 10.3.2023

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1 FIRST LEASE AMENDMENT

This FIRST LEASE AMENDMENT (the “Amendment”) is made and entered into on this _____ day of __________________, 2024 (the “Effective Date”) by and between CITY OF HANFORD, a municipal corporation (the “Landlord”) and CONSOLIDATED ELECTRICAL DISTRIBUTORS, INC., a Delaware corporation (the “Tenant”), with respect to that certain Lease Agreement, dated October 5, 2023 (the “Lease”), for premises located at 426 W. Lacey Blvd., Hanford, California, consisting of approximately 17,382 square feet of building area and exterior fenced and parking area (the “Premises”), to which Lease, Landlord and Tenant are parties:

WITNESSETH

WHEREAS, Landlord and Tenant wish to amend the Lease to clarify Tenant’s insurance requirements;

NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, Landlord and Tenant agree that the Lease shall be modified and amended as follows:

1. TENANT’S INSURANCE.

1.1 Tenant’s obligations to maintain insurance coverage under Paragraphs 8.1 and 8.2 of the Lease may be satisfied by providing a current Acord Form Certificate of Insurance and endorsements evidencing such required coverage , in lieu of the specific ISO Forms specified in such paragraphs.

1.2 Paragraph 8.1(B)(3) shall be deleted and replaced with the following:

“Tenant agrees not to cancel each insurance policy required herein, except with written notice to Landlord.”

1.3 Paragraph 8.2(A) shall be deleted and replaced with the following:

“Tenant shall maintain on the office/retail and warehouse building located on the Premises (“Building”) a policy or policies of fire and extended coverage insurance, to the extent of at least one hundred percent (100%) of the full replacement value thereof, without deduction for depreciation. Landlord shall be listed as Loss Payee and Additional Insured on the Evidence of Commercial Property Insurance Acord form.”

1.4 Paragraph 9(A) of the Lease shall be modified and the following shall be appended to the end of such paragraph:

(7) “Any loss occurring at the Premises, Property, or Building related to Tenant’s requirement to insure the Premises or Building under Paragraph 8.2(A) due to Tenant’s self -insurance, under -insurance or un- insured losses, as well as deductibles related t o any insurance described in Paragraphs 8.1 and 8.2, business interruption, or additional cost resulting from debris removal and for the enforcement of any ordinance or

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2 law regulating the reconstruction or replacement of any undamaged portion of the Building or other improvements required to be demolished or removed as a result of the enforcement of any building, zoning, safety or land use laws.”

2. CONFIRMATION. Landlord and Tenant hereby agree that, as of the Effective Date of this Amendment, both parties have dutifully fulfilled all of their respective obligations due under the Lease and that neither party is in default thereunder.

All other provisions, conditions and agreements contained a nd referred to in said Lease , except to the extent modified herein shall remain in full force and effect.

LANDLORD: TENANT:

CITY OF HANFORD , CONSOLIDATED ELECTRICAL
a municipal corporation DISTRIBUTORS, INC.,
a Delaware corporation

By: ________________________ By: ________________________ Name: Mario Cifuentez, II Jeremy McDonald,
Title: City Manager Real Estate Manager

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14.E.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of the annual City of Hanford Salary Schedules, pursuant to the California Code of Regulations (CCR) 570.5.

RECOMMENDATION:

Recommendation: That the City Council, by motion, approve the attached salary schedules to reflect part-time employee salary ranges and full-time employee increases approved through the labor negotiation process and authorize administration to amend all other documents as may be necessary to implement the updates.

BACKGROUND:

Pursuant to the California Code of Regulations (CCR) 570.5, the California Public Employees’ Retirement System (CalPERS) requires that a publicly available pay schedule be used to determine pay rates. Additionally, pay rates shall be limited to the amount listed on a pay schedule and must meet all of the following eight requirements:

1. Be duly approved and adopted by the employer's governing body in accordance with requirements of applicable public meetings laws

2. Identify the position title for every employee position

3. Show the pay rate as a single amount or multiple amounts within a range for each identified position

4. Indicate the time base, including, but not limited to, whether the time base is hourly, daily, bi- weekly, monthly, bi-monthly, or annually

5. Be posted at the office of the employer or immediately accessible and available for public review from the employer during normal business hours or posted on the employer's website

6. Indicate an effective date and date of any revisions

7. Is retained by the employer and available for public inspection for not less than five years

8. Does not reference another document in lieu of disclosing the pay rate

Staff intends to continue to obtain City Council approval on a frequent basis to satisfy the requirements set forth by the California Code of Regulations (CCR) 570.5.

FISCAL IMPACT:

The bargaining group increases were previously approved by City Council in 2022, and the upcoming budget includes the negotiated increases.

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ATTACHMENTS:

1. City of Hanford Comprehensive Salary Schedule 7-8-24

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Salary Schedules
Adopted by City Council
June 4, 2024

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BARGAINING OT FLSA SALARY
UNIT JOB TITLE DESIGNATION DESIGNATION RANGE 1/MIN 2 3 4 5/MAX 1/MIN 2 3 4 5/MAX GEMA Accountant 1 E 102 $5,819 $6,110 $6,415 $6,736 $7,073 33.57 35.25 37.01 38.86 40.80 SEIU Accounting Clerk 3 40 59 $3,793 $3,983 $4,182 $4,391 $4,611 21.88 22.98 24.13 25.33 26.60 GEMA Accounting Technician I 2 40 74 $4,404 $4,624 $4,855 $5,098 $5,353 25.41 26.68 28.01 29.41 30.88 GEMA Accounting Technician II 2 40 84 $4,865 $5,108 $5,363 $5,631 $5,913 28.06 29.47 30.94 32.49 34.11 GEMA Administrative Analyst I 1 E 95 $5,427 $5,699 $5,983 $6,283 $6,597 31.31 32.88 34.52 36.25 38.06 GEMA Administrative Analyst II 1 E 105 $5,995 $6,295 $6,609 $6,940 $7,287 34.59 36.32 38.13 40.04 42.04 SEIU Administrative Assistant 3 40 69 $4,190 $4,400 $4,620 $4,850 $5,093 24.17 25.38 26.65 27.98 29.38 GEMA Administrative Specialist 2 40 81 $4,721 $4,958 $5,205 $5,466 $5,739 27.24 28.60 30.03 31.53 33.11 SEIU Administrative Technician 3 40 79 $4,628 $4,860 $5,103 $5,358 $5,626 26.70 28.04 29.44 30.91 32.46 SEIU Animal Control Technician 3 40 65 $4,027 $4,228 $4,439 $4,661 $4,894 23.23 24.39 25.61 26.89 28.24 GEMA Assistant Engineer 1 E 108 $6,177 $6,485 $6,810 $7,150 $7,508 35.63 37.42 39.29 41.25 43.31 SEIU Assistant Planner 3 40 100 $5,704 $5,989 $6,289 $6,603 $6,933 32.91 34.55 36.28 38.09 40.00 GEMA Associate Civil Engineer 1 E 123 $7,171 $7,529 $7,906 $8,301 $8,716 41.37 43.44 45.61 47.89 50.29 GEMA Associate Planner 1 E 110 $6,301 $6,616 $6,947 $7,294 $7,659 36.35 38.17 40.08 42.08 44.18 SEIU Building Inspector I 3 40 89 $5,113 $5,368 $5,637 $5,919 $6,214 29.50 30.97 32.52 34.15 35.85 SEIU Building Inspector II 3 40 99 $5,648 $5,930 $6,226 $6,538 $6,865 32.58 34.21 35.92 37.72 39.60 GEMA Building Official 1 E 137 $8,243 $8,655 $9,088 $9,542 $10,019 47.55 49.93 52.43 55.05 57.80 GEMA Building Superintendent 1 E 111 $6,364 $6,682 $7,016 $7,367 $7,735 36.71 38.55 40.48 42.50 44.63 GEMA City Clerk 1 E 121 $7,030 $7,381 $7,750 $8,138 $8,544 40.56 42.58 44.71 46.95 49.30 GEMA City Engineer 1 E 164 $10,783 $11,322 $11,888 $12,483 $13,107 62.21 65.32 68.59 72.02 75.62 Unrepresented City Manager 1 E 202 $15,738 $16,525 $17,352 $18,219 $19,130 90.80 95.34 100.11 105.11 110.37 SEIU Code Compliance Officer 3 40 89 $5,113 $5,368 $5,637 $5,919 $6,214 29.50 30.97 32.52 34.15 35.85 GEMA Code Compliance Supervisor 1 E 101 $5,761 $6,049 $6,352 $6,669 $7,003 33.24 34.90 36.64 38.48 40.40 SEIU
Communications Dispatch
Supervisor 3 40 96 $5,481 $5,756 $6,043 $6,345 $6,663 31.62 33.20 34.87 36.61 38.44 SEIU Communications Dispatcher 3 40 75 $4,448 $4,670 $4,904 $5,149 $5,406 25.66 26.94 28.29 29.71 31.19 MONTHLY SALARY HOURLY SALARY HPOA Longevity &/or
Specialty Pay

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BARGAINING OT FLSA SALARY
UNIT JOB TITLE DESIGNATION DESIGNATION RANGE 1/MIN 2 3 4 5/MAX 1/MIN 2 3 4 5/MAX MONTHLY SALARY HOURLY SALARY HPOA Longevity &/or
Specialty Pay
EMEA
Community Development
Director 1 E 169 $11,333 $11,900 $12,495 $13,120 $13,776 65.38 68.65 72.09 75.69 79.47 SEIU
Community Enhancement
Officer 3 40 57 $3,718 $3,904 $4,100 $4,305 $4,520 21.45 22.53 23.65 24.83 26.08 GEMA Community Relations Manager 1 E 123 $7,171 $7,529 $7,906 $8,301 $8,716 41.37 43.44 45.61 47.89 50.29 SEIU Computer Technician 3 40 82 $4,769 $5,007 $5,257 $5,520 $5,796 27.51 28.89 30.33 31.85 33.44 SEIU
Construction
Coordinator/Inspector 3 40 107 $6,115 $6,421 $6,742 $7,079 $7,433 35.28 37.05 38.90 40.84 42.88 SEIU Construction Inspector I 3 40 87 $5,012 $5,262 $5,526 $5,802 $6,092 28.91 30.36 31.88 33.47 35.15 SEIU Construction Inspector II 3 40 97 $5,536 $5,813 $6,104 $6,409 $6,729 31.94 33.54 35.21 36.97 38.82 SEIU Custodian 3 40 47 $3,366 $3,535 $3,711 $3,897 $4,092 19.42 20.39 21.41 22.48 23.61 Unrepresented Deputy City Manager 1 E 189 $13,829 $14,520 $15,246 $16,009 $16,809 79.78 83.77 87.96 92.36 96.97 GEMA Deputy Public Works Director 1 E 156 $9,958 $10,456 $10,979 $11,528 $12,104 57.45 60.32 63.34 66.51 69.83 SEIU Development Services Assistant 3 40 60 $3,831 $4,023 $4,224 $4,435 $4,657 22.10 23.21 24.37 25.59 26.87 SEIU
Development Services
Technician 3 40 75 $4,448 $4,670 $4,904 $5,149 $5,406 25.66 26.94 28.29 29.71 31.19 GEMA Engineering Manager 1 E 146 $9,015 $9,466 $9,939 $10,436 $10,958 52.01 54.61 57.34 60.21 63.22 SEIU Engineering Technician I 3 40 77 $4,537 $4,764 $5,002 $5,252 $5,515 26.18 27.49 28.86 30.30 31.82 SEIU Engineering Technician II 3 40 87 $5,012 $5,262 $5,526 $5,802 $6,092 28.91 30.36 31.88 33.47 35.15 GEMA
Environmental Compliance
Supervisor 1 E 110 $6,301 $6,616 $6,947 $7,294 $7,659 36.35 38.17 40.08 42.08 44.18 SEIU
Facilities Maintenance
Technician I 3 40 62 $3,908 $4,104 $4,309 $4,524 $4,750 22.55 23.67 24.86 26.10 27.41 SEIU
Facilities Maintenance
Technician II 3 40 72 $4,317 $4,533 $4,759 $4,997 $5,247 24.91 26.15 27.46 28.83 30.27 EMEA Finance Director 1 E 175 $12,030 $12,632 $13,264 $13,927 $14,623 69.41 72.88 76.52 80.35 84.36 GEMA Finance Manager 1 E 142 $8,663 $9,096 $9,551 $10,029 $10,530 49.98 52.48 55.10 57.86 60.75 GEMA Financial Analyst 1 E 115 $6,622 $6,953 $7,301 $7,666 $8,049 38.20 40.12 42.12 44.23 46.44 IAFF Fire Battalion Chief** 1 E 148 $9,196 $9,656 $10,139 $10,646 $11,178 53.05 55.71 58.49 61.42 64.49 IAFF Fire Battalion Chief* 4 E 115 $9,271 $9,735 $10,221 $10,732 $11,269 38.20 40.12 42.12 44.23 46.44 IAFF Fire Captain** 4 24 94 46.66 48.99 51.44 54.01 56.71 IAFF Fire Captain* 4 24 94 $7,523 $7,899 $8,294 $8,709 $9,144 31.00 32.55 34.18 35.89 37.68 EMEA Fire Chief 1 E 175 $12,030 $12,632 $13,264 $13,927 $14,623 69.41 72.88 76.52 80.35 84.36 Administrative Assignment

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BARGAINING OT FLSA SALARY
UNIT JOB TITLE DESIGNATION DESIGNATION RANGE 1/MIN 2 3 4 5/MAX 1/MIN 2 3 4 5/MAX MONTHLY SALARY HOURLY SALARY HPOA Longevity &/or
Specialty Pay
IAFF Fire Engineer** 4 24 77 39.40 41.36 43.43 45.60 47.89 IAFF Fire Engineer* 4 24 77 $6,352 $6,670 $7,003 $7,353 $7,721 26.18 27.49 28.86 30.30 31.82 GEMA Fire Marshal 1 E 118 $6,823 $7,164 $7,522 $7,898 $8,293 39.36 41.33 43.40 45.57 47.85 GEMA Fire Prevention Coordinator 1 E 89 $5,113 $5,368 $5,637 $5,919 $6,214 29.50 30.97 32.52 34.15 35.85 IAFF Firefighter** 4 24 67 35.66 37.45 39.32 41.29 43.35 IAFF Firefighter* 4 24 67 $5,750 $6,038 $6,340 $6,657 $6,990 23.70 24.88 26.13 27.43 28.80 SEIU Fleet Mechanic I 3 40 68 $4,149 $4,356 $4,574 $4,802 $5,043 23.93 25.13 26.39 27.71 29.09 SEIU Fleet Mechanic II 3 40 78 $4,583 $4,812 $5,052 $5,305 $5,570 26.44 27.76 29.15 30.61 32.14 GEMA Fleet Superintendent 1 E 111 $6,364 $6,682 $7,016 $7,367 $7,735 36.71 38.55 40.48 42.50 44.63 GEMA Fleet Supervisor 1 E 95 $5,427 $5,699 $5,983 $6,283 $6,597 31.31 32.88 34.52 36.25 38.06 SEIU Heavy Equipment Operator 3 40 72 $4,317 $4,533 $4,759 $4,997 $5,247 24.91 26.15 27.46 28.83 30.27 GEMA Housing Analyst 1 E 105 $5,995 $6,295 $6,609 $6,940 $7,287 34.59 36.32 38.13 40.04 42.04 SEIU Housing Program Specialist 3 40 79 $4,628 $4,860 $5,103 $5,358 $5,626 26.70 28.04 29.44 30.91 32.46 GEMA Human Resources Analyst I 1 E 108 $6,177 $6,485 $6,810 $7,150 $7,508 35.63 37.42 39.29 41.25 43.31 GEMA Human Resources Analyst II 1 E 118 $6,823 $7,164 $7,522 $7,898 $8,293 39.36 41.33 43.40 45.57 47.85 Unrepresented Human Resources Manager 1 E 157 $10,058 $10,561 $11,089 $11,643 $12,225 58.03 60.93 63.97 67.17 70.53 GEMA Human Resources Technician 2 40 81 $4,721 $4,958 $5,205 $5,466 $5,739 27.24 28.60 30.03 31.53 33.11 GEMA Information Systems Analyst 1 E 121 $7,030 $7,381 $7,750 $8,138 $8,544 40.56 42.58 44.71 46.95 49.30 GEMA Information Systems Specialist 1 E 102 $5,819 $6,110 $6,415 $6,736 $7,073 33.57 35.25 37.01 38.86 40.80 GEMA Information Technology Manager 1 E 136 $8,161 $8,569 $8,998 $9,448 $9,920 47.08 49.44 51.91 54.50 57.23 SEIU Landscape Services Technician 3 40 77 $4,537 $4,764 $5,002 $5,252 $5,515 26.18 27.49 28.86 30.30 31.82 SEIU Meter Reader 3 40 60 $3,831 $4,023 $4,224 $4,435 $4,657 22.10 23.21 24.37 25.59 26.87 SEIU Office Assistant I 3 40 40 $3,140 $3,297 $3,462 $3,635 $3,816 18.11 19.02 19.97 20.97 22.02 SEIU Office Assistant II 3 40 50 $3,468 $3,642 $3,824 $4,015 $4,216 20.01 21.01 22.06 23.16 24.32 SEIU Parking Control Officer 3 40 50 $3,468 $3,642 $3,824 $4,015 $4,216 20.01 21.01 22.06 23.16 24.32 Administrative Assignment
Administrative Assignment

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BARGAINING OT FLSA SALARY
UNIT JOB TITLE DESIGNATION DESIGNATION RANGE 1/MIN 2 3 4 5/MAX 1/MIN 2 3 4 5/MAX MONTHLY SALARY HOURLY SALARY HPOA Longevity &/or
Specialty Pay
EMEA
Parks & Community Services
Director 1 E 168 $11,221 $11,782 $12,371 $12,990 $13,639 64.74 67.97 71.37 74.94 78.69 SEIU Parks Maintenance Worker I 3 40 57 $3,718 $3,904 $4,100 $4,305 $4,520 21.45 22.53 23.65 24.83 26.08 SEIU Parks Maintenance Worker II 3 40 67 $4,107 $4,313 $4,528 $4,755 $4,993 23.70 24.88 26.13 27.43 28.80 GEMA Parks Manager 1 E 133 $7,921 $8,317 $8,733 $9,170 $9,628 45.70 47.98 50.38 52.90 55.55 GEMA Parks Supervisor 1 E 90 $5,164 $5,422 $5,693 $5,978 $6,277 29.79 31.28 32.84 34.49 36.21 GEMA Payroll Analyst 1 E 95 $5,427 $5,699 $5,983 $6,283 $6,597 31.31 32.88 34.52 36.25 38.06 GEMA Payroll Specialist 2 40 74 $4,404 $4,624 $4,855 $5,098 $5,353 25.41 26.68 28.01 29.41 30.88 GEMA Plans Examiner 1 E 107 $6,115 $6,421 $6,742 $7,079 $7,433 35.28 37.05 38.90 40.84 42.88 HPOA Police Cadet 4 40 48 $3,400 $3,570 $3,748 $3,936 $4,133 19.61 20.60 21.63 22.71 23.84 HPOA Police Captain 1 E 156 $9,958 $10,456 $10,979 $11,528 $12,104 57.45 60.32 63.34 66.51 69.83 EMEA Police Chief 1 E 181 $12,771 $13,409 $14,080 $14,784 $15,523 73.68 77.36 81.23 85.29 89.55 HPOA Police Corporal 4 14 119 $6,891 $7,236 $7,597 $7,977 $8,376 39.76 41.74 43.83 46.02 48.32 50.79 HPOA Police Lieutenant 1 E 148 $9,196 $9,656 $10,139 $10,646 $11,178 53.05 55.71 58.49 61.42 64.49 HPOA Police Officer/Investigator*** 4 14 109 $6,238 $6,550 $6,878 $7,222 $7,583 35.99 37.79 39.68 41.66 43.75 45.98 48.32 SEIU Police Records Assistant 3 40 58 $3,756 $3,943 $4,141 $4,348 $4,565 21.67 22.75 23.89 25.08 26.34 HPOA Police Sergeant 4 14 134 $8,000 $8,400 $8,820 $9,261 $9,724 46.16 48.46 50.89 53.43 56.10 58.96 SEIU Police Service Technician 3 40 60 $3,831 $4,023 $4,224 $4,435 $4,657 22.10 23.21 24.37 25.59 26.87 GEMA
Police Support Services
Administrator 1 E 116 $6,688 $7,023 $7,374 $7,743 $8,130 38.59 40.52 42.54 44.67 46.90 GEMA Principal Planner 1 E 137 $8,243 $8,655 $9,088 $9,542 $10,019 47.55 49.93 52.43 55.05 57.80 GEMA Project Manager 1 E 128 $7,537 $7,913 $8,309 $8,725 $9,161 43.48 45.65 47.94 50.33 52.85 SEIU
Property and Evidence
Technician 3 40 65 $4,027 $4,228 $4,439 $4,661 $4,894 23.23 24.39 25.61 26.89 28.24 EMEA Public Works Director 1 E 171 $11,561 $12,139 $12,746 $13,383 $14,053 66.70 70.03 73.54 77.21 81.07 GEMA Purchasing Agent 1 E 115 $6,622 $6,953 $7,301 $7,666 $8,049 38.20 40.12 42.12 44.23 46.44 SEIU Recreation Coordinator 3 40 81 $4,721 $4,958 $5,205 $5,466 $5,739 27.24 28.60 30.03 31.53 33.11

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BARGAINING OT FLSA SALARY
UNIT JOB TITLE DESIGNATION DESIGNATION RANGE 1/MIN 2 3 4 5/MAX 1/MIN 2 3 4 5/MAX MONTHLY SALARY HOURLY SALARY HPOA Longevity &/or
Specialty Pay
GEMA Recreation Supervisor 1 E 95 $5,427 $5,699 $5,983 $6,283 $6,597 31.31 32.88 34.52 36.25 38.06 GEMA Recycling Coordinator 2 40 88 $5,062 $5,315 $5,581 $5,860 $6,153 29.20 30.66 32.20 33.81 35.50 SEIU Refuse Collector 3 40 66 $4,067 $4,270 $4,484 $4,708 $4,943 23.46 24.64 25.87 27.16 28.52 GEMA Refuse Manager 1 E 125 $7,315 $7,681 $8,065 $8,468 $8,891 42.20 44.31 46.53 48.85 51.30 SEIU Refuse Service Worker 3 40 76 $4,492 $4,717 $4,953 $5,200 $5,460 25.92 27.21 28.57 30.00 31.50 GEMA Refuse Supervisor 1 E 98 $5,592 $5,871 $6,165 $6,473 $6,797 32.26 33.87 35.57 37.34 39.21 GEMA Regulatory Compliance Analyst 1 E 95 $5,427 $5,699 $5,983 $6,283 $6,597 31.31 32.88 34.52 36.25 38.06 GEMA Risk Management Analyst 1 E 111 $6,364 $6,682 $7,016 $7,367 $7,735 36.71 38.55 40.48 42.50 44.63 GEMA
Sanitary Sewer Collection
Supervisor 1 E 100 $5,704 $5,989 $6,289 $6,603 $6,933 32.91 34.55 36.28 38.09 40.00 GEMA Senior Administrative Analyst 1 E 115 $6,622 $6,953 $7,301 $7,666 $8,049 38.20 40.12 42.12 44.23 46.44 GEMA Senior Civil Engineer 1 E 133 $7,921 $8,317 $8,733 $9,170 $9,628 45.70 47.98 50.38 52.90 55.55 SEIU Senior Custodian 3 40 57 $3,718 $3,904 $4,100 $4,305 $4,520 21.45 22.53 23.65 24.83 26.08 SEIU Senior Fleet Mechanic 3 40 88 $5,062 $5,315 $5,581 $5,860 $6,153 29.20 30.66 32.20 33.81 35.50 SEIU Senior Maintenance Worker 3 40 77 $4,537 $4,764 $5,002 $5,252 $5,515 26.18 27.49 28.86 30.30 31.82 SEIU Senior Meter Reader 3 40 70 $4,232 $4,444 $4,666 $4,899 $5,144 24.42 25.64 26.92 28.26 29.68 GEMA Senior Planner 1 E 122 $7,100 $7,455 $7,828 $8,219 $8,630 40.96 43.01 45.16 47.42 49.79 GEMA Senior Plans Examiner 1 E 117 $6,755 $7,093 $7,448 $7,820 $8,211 38.97 40.92 42.97 45.12 47.37 SEIU Senior Police Records Assistant 3 40 68 $4,149 $4,356 $4,574 $4,802 $5,043 23.93 25.13 26.39 27.71 29.09 SEIU Senior Refuse Collector 3 40 81 $4,721 $4,958 $5,205 $5,466 $5,739 27.24 28.60 30.03 31.53 33.11 SEIU
Senior Utilities Maintenance
Worker 3 40 87 $5,012 $5,262 $5,526 $5,802 $6,092 28.91 30.36 31.88 33.47 35.15 SEIU
Sewer Collections Maintenance
Worker I 3 40 57 $3,718 $3,904 $4,100 $4,305 $4,520 21.45 22.53 23.65 24.83 26.08 SEIU
Sewer Collections Maintenance
Worker II 3 40 67 $4,107 $4,313 $4,528 $4,755 $4,993 23.70 24.88 26.13 27.43 28.80 SEIU Shop and Parts Specialist 3 40 73 $4,360 $4,578 $4,807 $5,047 $5,300 25.15 26.41 27.73 29.12 30.58 SEIU Storm Maintenance Worker I 3 40 57 $3,718 $3,904 $4,100 $4,305 $4,520 21.45 22.53 23.65 24.83 26.08 SEIU Storm Maintenance Worker II 3 40 67 $4,107 $4,313 $4,528 $4,755 $4,993 23.70 24.88 26.13 27.43 28.80 SEIU Streets Maintenance Worker I 3 40 57 $3,718 $3,904 $4,100 $4,305 $4,520 21.45 22.53 23.65 24.83 26.08

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BARGAINING OT FLSA SALARY
UNIT JOB TITLE DESIGNATION DESIGNATION RANGE 1/MIN 2 3 4 5/MAX 1/MIN 2 3 4 5/MAX MONTHLY SALARY HOURLY SALARY HPOA Longevity &/or
Specialty Pay
SEIU Streets Maintenance Worker II 3 40 67 $4,107 $4,313 $4,528 $4,755 $4,993 23.70 24.88 26.13 27.43 28.80 GEMA Streets Manager 1 E 127 $7,462 $7,835 $8,227 $8,638 $9,070 43.05 45.20 47.46 49.84 52.33 GEMA Streets Supervisor 1 E 102 $5,819 $6,110 $6,415 $6,736 $7,073 33.57 35.25 37.01 38.86 40.80 SEIU Sweeper Operator 3 40 66 $4,067 $4,270 $4,484 $4,708 $4,943 23.46 24.64 25.87 27.16 28.52 SEIU Traffic Control Technician 3 40 92 $5,268 $5,531 $5,807 $6,098 $6,403 30.39 31.91 33.50 35.18 36.94 EMEA Utilities & Engineering Director 1 E 171 $11,561 $12,139 $12,746 $13,383 $14,053 66.70 70.03 73.54 77.21 81.07 SEIU Utilities Maintenance Worker I 3 40 67 $4,107 $4,313 $4,528 $4,755 $4,993 23.70 24.88 26.13 27.43 28.80 SEIU Utilities Maintenance Worker II 3 40 77 $4,537 $4,764 $5,002 $5,252 $5,515 26.18 27.49 28.86 30.30 31.82 GEMA Utilities Manager 1 E 127 $7,462 $7,835 $8,227 $8,638 $9,070 43.05 45.20 47.46 49.84 52.33 GEMA Utilities Supervisor 1 E 104 $5,936 $6,232 $6,544 $6,871 $7,215 34.24 35.96 37.75 39.64 41.62 GEMA Utility Billing Specialist 1 E 87 $5,012 $5,262 $5,526 $5,802 $6,092 28.91 30.36 31.88 33.47 35.15 SEIU Water Conservation Technician 3 40 79 $4,628 $4,860 $5,103 $5,358 $5,626 26.70 28.04 29.44 30.91 32.46 GEMA WWTP Manager 1 E 138 $8,325 $8,741 $9,178 $9,637 $10,119 48.03 50.43 52.95 55.60 58.38 SEIU WWTP Operator I 3 40 75 $4,448 $4,670 $4,904 $5,149 $5,406 25.66 26.94 28.29 29.71 31.19 SEIU WWTP Operator II 3 40 85 $4,913 $5,159 $5,417 $5,688 $5,972 28.35 29.76 31.25 32.81 34.45 GEMA WWTP Supervisor 1 E 107 $6,115 $6,421 $6,742 $7,079 $7,433 35.28 37.05 38.90 40.84 42.88 SEIU WWTP/OIT 3 40 60 $3,831 $4,023 $4,224 $4,435 $4,657 22.10 23.21 24.37 25.59 26.87 Barganing Group Designation Overtime Designation FLSA Designation EMEA 1. No compensation for overtime work
GEMA
IAFF
HPOA
SEIU
Unrep
NANot Applicable
Executive Management Employees Association
General Employees Management Association
International Association of Firefighters
Hanford Police Officers Association
Service Employees International Union Local 521
*2,912 hours worked annually (all other job classifications salary are based on 2,080 hours worked annually) **Administrative assignment pay in the Fire Department is calculated by taking current base rate x 2,912 multiplying that amount by 1.075 and dividing the total by 2,080. This converts a 56 hour work week to a 40 hour work week. ***If EE is receiving specialty pay and is not at step 5/MAX they will receive the pay of the next step in the salary range Unrepresented
E - Exempt
40 - 40 hour, 7 day work period (non-exempt)
14 - 86 hour/14 day work period (7k exemption)
24 -182 hour/24 day work period (7k exemption)
Management Employee
Conf/Other Employee
General Employee
Fire/Police Employee

2. Shall be paid for overtime work

3. Shall be paid for overtime work

4. Shall be paid for overtime work

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BARGAINING OT FLSA
UNIT JOB TITLE DESIGNATION DESIGNATION 1/MIN to 5/MAX
NA Airport Manager 3 40 $25.00 to $25.00 Barganing Group Designation NA Airport Operations Attendant 3 40 $16.00 to $18.00 Not Applicable NA NA Certified Instructor 3 40 $16.00 to $22.00
NA Clerical Support 3 40 $16.00 to $18.00 Overtime Designation NA Code Enforcement Officer 3 40 $16.00 to $18.00 3.General Employee Shall be paid for overtime work NA Community Service Officer 3 40 $16.00 to $18.00
NA Custodian 3 40 $16.00 to $18.00 FLSA Designation
NA Engineering Technician Aide 3 40 $16.00 to $18.00 40 - 40 hour, 7 day work period (non-exempt) NA Facilities Host 3 40 $16.00 to $18.00
NA Fire Inspector 3 40 $25.00 to $25.00
NA Fleet Mechanic (Helper) 3 40 $16.00 to $24.00
NA Graffiti Control Officer 3 40 $16.00 to $18.00
NA Ice Rink Manager 3 40 $20.00 to $20.00
NA Intern 3 40 $16.00 to $18.00
NA Lead Facilities Host 3 40 $21.00 to $23.00
NA Management Intern 3 40 $16.00 to $21.00
NA Meter Reader 3 40 $16.00 to $18.00
NA Paint Program Coordinator 3 40 $16.00 to $18.00
NA Parking Control Officer 3 40 $16.00 to $18.00
NA Pool Manager 3 40 $16.50 to $18.50
NA Parks/Public Works Laborer 3 40 $18.00 to $22.00
NA Recreation Leader I 3 40 $16.00 to $17.00
NA Recreation Leader II 3 40 $16.50 to $17.50
NA Recreation Leader III 3 40 $17.00 to $18.00
NA Refuse Collector 3 40 $16.00 to $19.50
NA Reserve Police Officer (Level I) 3 40 $22.24 to $26.40 NA Sports Coordinator 3 40 $22.00 to $22.00
NA Sports Official 3 40 $16.00 to $22.00
City of Hanford Part-Time Salary Schedule
Revision Date - 7/8/24 City Council Adoption Date - 6/4/24 The above list contains the City of Hanford's part-time positions. Appointments for part-time work may be paid at an hourly rate as high as Step “3” of the range to which a full-time job classification has been established. Part-time appointments made at higher than Step “3” must be approved by the City Manager. If a part-time employee works more than 1,000 hours in a fiscal year he/she must become a member of CalPERS with the employee and the City making the appropriate contribution as defined by the City’s CalPERS contract. The employee will remain a CalPERS member until termination.

HOURLY SALARY

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14.F.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

RECOMMENDATION:

Recommendation: That the City Council, by motion, approve the second reading and adopt Ordinance No. 24-05, amending Chapter 3.28 of the Hanford Municipal Code to allow for the reestablishment of the Central Parking and Business Improvement Area Advisory Board as required by the Hanford Municipal Code.

BACKGROUND
On April 2, 2024, staff presented the Council with the Final draft of the Downtown Strategic Plan. As part of that plan, there were recommendations to work with Downtown "stakeholders" and "community partners" to help advise and participate in the Plan's implementation process. The City's Municipal Code establishes a Business Improvement Area, which requires a seven-member board, comprised of business owners in the Downtown, that is tasked with making recommendations to Council on funding and other matters in the Business Improvement Area as it relates to the following:

A. The acquisition, construction or maintenance of parking facilities for the benefit of the area; B. The decoration of any public place in the area;
C. The promotion of public events which are to take place on or in public places in the area; D. The furnishing of music in any public place in the area; and E. The general promotion of retail trade activities in the area.

The Business Improvement Area Board may be the appropriate advisory group to provide recommendations on the Plan's implementation. To move forward with the implementation of the Plan, Staff is recommending that the Business Improvement Area Board be re-established within the adopted district boundaries. To ensure that the BID has broad representation among the entire Area, City planning staff created a district map that includes seven districts (each district contains an equal number of businesses). Parcels zoned exclusively for residential uses were excluded from the district map since they do not pay a business licenses tax and cannot establish storefront businesses.

The proposed ordinance amendments will
• Increase the terms of the board members to be consistent with other City commissions; • Amend the duties of the board to go beyond simple budget matters • Update various sections related to Business Licensing to be consistent with the current

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version of Chapters 5.04 and 5.08.
• Amended budget cycle language to be consistent with the City's 2-year budget process.

FISCAL IMPACT:

No impact to the General Fund

ATTACHMENTS:

1. HMC Ordinance 24-05 BID

2. Chapter 3.28 CENTRAL PARKING AND BUSINESS IMPROVEMENT AREA - Redline

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1 ORDINANCE NO. 24-05
AN ORDINANCE OF THE CITY OF HANFORD AMENDING CHAPTER 3.28 OF TITLE 3, GOVERNING THE CENTRAL PARKING AND BUSINESS

IMPROVEMENT AREA
The City Council of Hanford does ordain as follows:

Section 1. Chapter 3.28 of Title 3 is amended in the Hanford Municipal Code, to read as follows:

Chapter 3.28

CENTRAL PARKING AND BUSINESS IMPROVEMENT AREA

3.28.010 Authority.

3.28.020 Designation.

3.28.030 Area description.

3.28.040 Use of regular business license taxes within area.

3.28.050 Imposition of tax.

3.28.060 Initial rate of increase or additional levy of business license tax.

3.28.070 Definitions and classifications.

3.28.080 Collection of tax.

3.28.090 Exemption—Voluntary contributions.

3.28.100 Enforcement of provisions.

3.28.110 Proposed uses.

3.28.120 Advisory board.

3.28.130 Regular and additional revenues—Deposits.

3.28.140 Central parking and improvement fund—Established.

3.28.150 Central parking and improvement fund—Use of funds.

3.28.010 Authority.

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2 This chapter is adopted pursuant to the authority of the “Parking and Business Improvement Area Law of 1965,” being Sections 36000 et seq. of the Streets and Highway Code of the state. (Prior code § 3-6.101)

3.28.020 Designation.

There is created and established a parking and business improvement area designated as the “central parking and business improvement area of the city of Hanford,” hereinafter for brevity and convenience referred to as “area.” (Prior code § 3-6.102)

3.28.030 Area description.

A description of the exterior boundaries of said central parking and business improvement area of the city is as follows:

All that certain area situated in the city of Hanford, county of Kings, state of California, more particularly described as follows:

Beginning at the intersection of the center line of Redington Street and Ivy Street; thence northerly along the center line of Redington Street approximately 660 feet to its intersection with the center line of Elm Street; thence easterly along the center line of Elm Street approximately 1,500 feet to the center line of Harris Street; thence southerly along the center line of Harris Street approximately 660 feet to the center line of Ivy Street; thence easterly along the center line of Ivy Street approximately 2,150 feet to the east line of Section 25, said east line being located in the 10th Avenue right-of-way; thence southerly along the east line of said Section 25 approximately 1,300 feet to the north boundary line of the territory annexed by Ordinance No. 651; thence easterly along the boundary line of said annexed territory approximately 190 feet to an angle point in said boundary line, said point being located 10 feet east of the northeast corner of Lot 6 of Block 1 of Orange Addition and also being located on the east line of Assessor’s Parcel No. 14-211-10; thence southerly along said line of Assessor’s Parcel No. 14-211-10 and its southerly prolongation thereof approximately 180 feet to the south line of Section 30, said:
line being located in the Lacey Boulevard right-of-way; thence easterly along the south line of Section 30 a distance of approximately 52.5 feet to its point of intersection with the northeast corner of the territory annexed by Ordinance No. 693, said point being located on a northerly prolongation of the east line of Assessor’s Parcel No. 16-011-12 and being also located 12.5 feet east of a northerly prolongation of the west line of Lot 9 of Block X of Manasse and Simon Addition; thence southerly along the east line of the territory annexed by Ordinance No. 693 a distance of approximately 200 feet to the southeast corner of said annexed territory, said corner being located on the south line of the alley in Block X; thence westerly along the south line of last said annexed territory a distance of approximately 242.5 feet to the east line of Section 36, said line being located in the 10th Avenue right-of-way; thence southerly along said section line in 10th Avenue approximately 1,200 feet to its intersection with the construction center line of State Highway 198; thence westerly along said construction center line of State Highway 198 approximately 4,280 feet to its point of intersection with the east line of the A.T.&S.F. Railroad right-of- way, said line being also an east line for the right-of-way for the former City street

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3 named Thornton Street; thence northerly along the east line of said railroad right-of-way and said former street right-of- way and its northerly prolongation thereof to its point of intersection with the south line of Section 25; thence westerly along the south line of said Section 25 approximately 150 feet to its point of intersection with the center line of Park Avenue; thence northerly along the center line of Park Avenue approximately 1,500 feet to its intersection with the center line of Ivy Street; thence easterly along the center line of Ivy Street approximately 1,050 feet to the point of beginning. (Prior code § 3-6.103)

3.28.040 Use of regular business license taxes within area.

Effective July 1, 1975, all revenue from the regular business license taxes collected pursuant to Chapters 5.04 and 5.08 within the central parking and business improvement area of the city of Hanford shall be credited to the central parking and improvement fund for use as established by Sections 3.28.140 and 3.28.150. (Prior code § 3-6.104)

3.28.050 Imposition of tax.

Effective July 1, 1975, there is imposed an initial rate of increase or additional levy of business license tax upon all permanent businesses located within the boundaries of the central parking and business improvement area of the city established by this chapter and which businesses are required to pay a business license tax upon a monthly or quarterly basis under the provisions of Chapter 5.04. (Prior code § 3-6.105)

3.28.060 Initial rate of increase or additional levy of business license tax.

The additional levy of the license tax imposed upon businesses within said area is hereby fixed, levied, determined and established as follows:

A. An amount equal to one hundred (100) percent of the business license taxes imposed by Chapters 5.04 and 5.08, and subsequent amendments thereto, as the same applies to permanent businesses located within said proposed area and which are required to pay a license tax, excluding those businesses which pay license fees based upon average monthly gross receipts; and
B. When the amount of the license fee required by the provisions of Chapters 5.04 and 5.08, and subsequent amendments thereto, applies to permanent businesses located within said proposed area which pay a license tax based upon the amount of gross receipts from the sales of business transacted, the additional levy imposed shall be as follows:

1. An amount equal to one hundred (100) percent on gross annual sales up to five hundred thousand dollars ($500,000.00) per business,

2. An amount equal to fifty (50) percent on all portions of gross annual sales between five hundred thousand dollars ($500,000.00) and one million dollars ($1,000,000.00) per business, and

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4 3. An amount equal to twenty-five percent (25) on all portions of gross annual sales exceeding one million dollars ($1,000.000.00) per business. (Prior code § 3-6.106)

3.28.070 Definitions and classifications.

The definitions and classifications of business shall be determined by the definitions and classifications set forth in Chapter 5.04 and 5.08 as the same apply to businesses within the area. (Prior code § 3-6.107)

3.28.080 Collection of tax.

The collection of the initial rate of increase or additional levy of business license tax imposed by this chapter shall be made at the same time and in the same manner as the ordinary business license taxes of the city under the provisions of Chapter 5.04 and 5.08 as the same apply to businesses which are required to pay a license tax upon a monthly or quarterly basis. Such tax shall be computed in the manner provided for in Chapter 5.04 and 5.08 and shall be due and payable and subject to the same penalties for delinquencies as provided in Chapter 5.04 and 5.08 of this title as the same applies to businesses paying a regular business license tax on a quarterly or monthly basis. (Prior code § 3-6.108)

3.28.090 Exemption—Voluntary contributions.

Any business, person or institution located within said area, or which is exempt from the payment of the ordinary business license taxes of the city by reason of the laws of the United States or the state shall not be taxed under this chapter but may make a voluntary contribution to the city. Such contributions shall be used for the purposes provided in Section 3.28.110. (Prior code § 3-6.109)

3.28.100 Enforcement of provisions.

It shall be the duty of the director of finance and his or her designee to enforce the provisions of this chapter. The director of finance and his or her designee shall have the power to enforce business license requirements as set forth in Chapter 5.04

3.28.110 Proposed uses.

The uses to which the business license tax imposed by Chapter 5.04 and 5.08 and the additional revenues received by the initial rate of increase or additional levy of business license tax imposed by this chapter and all voluntary contributions are to be put are as follows:

A. The acquisition, construction or maintenance of parking facilities for the benefit of the area;
B. The decoration of any public place in the area;

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5 C. The promotion of public events which are to take place on or in public places in the area; D. The furnishing of music in any public place in the area; and E. The general promotion of retail trade activities in the area. (Prior code § 3-6.111)

3.28.120 Advisory board.

For the sole purpose of advising the council and making recommendations on the operation and extent of the area, the methods and ways in which the revenue derived from the levy of the license tax imposed by this chapter shall be used within the scope of the purposes set forth in Section 3.28.110, of this article, and to have and to perform such other powers and duties as the council may determine, there shall be created an advisory board, which shall consist of seven (7) members to be appointed by the mayor, with the concurrence of the council, for a term of four (4) years, to serve at the pleasure of the mayor and the council, said members to be persons who have businesses within the area that pay an additional levy of license tax as provided for by this chapter. The council may, approve a budget, consistent with the budget cycle used by the City. to include an estimate of expenditures to be made to carry out the purposes of the central parking and business improvement area of the city. (Prior code § 3-6.112)

3.28.130 Regular and additional revenues—Deposits.

The revenues received by the business license tax imposed by Chapters 5.04 and 5.08 from businesses within the area and the additional rate of increase or additional levy of business license tax imposed by this chapter and all voluntary contributions shall be deposited in the central parking and improvement fund created by Section 3.28.140. (Prior code § 3-6.113)

3.28.140 Central parking and improvement fund—Established.

There is established in the city a fund to be designated as the “central parking and improvement fund.” (Prior code § 3-6.201)

3.28.150 Central parking and improvement fund—Use of funds.

All revenues deposited in the central parking and improvement fund shall be used for the following purposes:

A. The acquisition, construction or maintenance of parking facilities for the benefit of the area;
B. The decoration of any public place in the area;
C. The promotion of public events which are to take place on or in public places in the area; D. The furnishing of music in any public place in the area; and

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6 E. The general promotion of retail trade activities in the area.

Section 2: This Ordinance shall take effect thirty (30) days after its adoption and shall be published once in the Hanford Sentinel within fifteen (15) days after its passage or a summary of this ordinance shall be published in the Hanford Sentinel in a manner consistent with the requirements of the California Government Code.

PASSED, ADOPTED AND APPROVED this ____ day of _________, 2024 by the following vote:

AYES: __________________________________________________________________ NOES: __________________________________________________________________ ABSTAIN: __________________________________________________________________ ABSENT: __________________________________________________________________ ___________________________

TRAVIS PADEN
MAYOR of the City of Hanford
Attest:
_____________________________________

NATALIE CORRAL

CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF KINGS ) ss

CITY OF HANFORD )
I, ________________________, City Clerk of the City of Hanford, do hereby certify the foregoing Ordinance was duly passed and adopted at a regular meeting of the City Council of the City of Hanford held on the ______ day of __________________, 2024.

Date: _______________________ ________________________________ City Clerk

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Hanford, California Municipal Code
Title 3 REVENUE AND FINANCE
Chapter 3.28 CENTRAL PARKING AND BUSINESS IMPROVEMENT
AREA

3.28.010 Authority.

3.28.020 Designation.

3.28.030 Area description.

3.28.040 Use of regular business license taxes within area.

3.28.050 Imposition of tax.

3.28.060 Initial rate of increase or additional levy of business license tax.

3.28.070 Definitions and classifications.

3.28.080 Collection of tax.

3.28.090 Exemption—Voluntary contributions.

3.28.100 Enforcement of provisions.

3.28.110 Proposed uses.

3.28.120 Advisory board—Budget.

3.28.130 Regular and additional revenues—Deposits.

3.28.140 Central parking and improvement fund—Established.

3.28.150 Central parking and improvement fund—Use of funds.

3.28.010 Authority.

This chapter is adopted pursuant to the authority of the “Parking and Business Improvement Area Law of 1965,” being Sections 36000 et seq. of the Streets and Highway Code of the state. (Prior code § 3-6.101)

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3.28.020 Designation.

3.28.030 Area description.

A description of the exterior boundaries of said central parking and business improvement area of the city is as follows:

All that certain area situated in the city of Hanford, county of Kings, state of California, more particularly described as follows:

Beginning at the intersection of the center line of Redington Street and Ivy Street; thence northerly along the center line of Redington Street approximately 660 feet to its intersection with the center line of Elm Street; thence easterly along the center line of Elm Street approximately 1,500 feet to the center line of Harris Street; thence southerly along the center line of Harris Street approximately 660 feet to the center line of Ivy Street; thence easterly along the center line of Ivy Street approximately 2,150 feet to the east line of Section 25, said east line being located in the 10th Avenue right-of-way; thence southerly along the east line of said Section 25 approximately 1,300 feet to the north boundary line of the territory annexed by Ordinance No. 651; thence easterly along the boundary line of said annexed territory approximately 190 feet to an angle point in said boundary line, said point being located 10 feet east of the northeast corner of Lot 6 of Block 1 of Orange Addition and also being located on the east line of Assessor’s Parcel No. 14-211-10; thence southerly along said line of Assessor’s Parcel No. 14-211-10 and its southerly prolongation thereof approximately 180 feet to the south line of Section 30, said: line being located in the Lacey Boulevard right-of-way; thence easterly along the south line of Section 30 a distance of approximately 52.5 feet to its point of intersection with the northeast corner of the territory annexed by Ordinance No. 693, said point being located on a northerly prolongation of the east line of Assessor’s Parcel No. 16-011-12 and being also located 12.5 feet east of a northerly prolongation of the west line of Lot 9 of Block X of Manasse and Simon Addition; thence southerly along the east line of the territory annexed by Ordinance No. 693 a distance of approximately 200 feet to the southeast corner of said annexed territory, said corner being located on the south line of the alley in Block X; thence westerly along the south line of last said annexed territory a distance of approximately 242.5 feet to the east line of Section 36, said line being located in the 10th Avenue right-of-way; thence southerly along said section line in 10th Avenue approximately 1,200 feet to its intersection with the construction center line of State Highway 198; thence westerly along said construction center line of State Highway 198 approximately 4,280 feet to its point of intersection with the east line of the A.T.&S.F. Railroad right-of- way, said line being also an east line for the right-of-way for the former City street named Thornton Street; thence northerly along the east line of said railroad right-of-way and said former street right-of- way and its northerly prolongation thereof to its point of intersection with the south line of Section 25; thence westerly along the south line of said Section 25 approximately 150 feet to its point of intersection with the center line of Park Avenue; thence northerly along the center line of Park Avenue approximately 1,500 feet to its intersection with the center line of Ivy Street; thence easterly along the center line of Ivy Street approximately 1,050 feet to the point of beginning. (Prior code § 3-6.103)

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3.28.040 Use of regular business license taxes within area.

3.28.140 and 3.28.150 . (Prior code § 3-6.104)

3.28.050 Imposition of tax.

3.28.60 Initial rate of increase or additional levy of business license tax.

The additional levy of the license tax imposed upon businesses within said area is hereby fixed, levied, determined and established as follows:

A. An amount equal to one hundred (100) percent of the business license taxes imposed by Chapters 5.04 and 5.08, and subsequent amendments thereto, as the same applies to permanent businesses located within said proposed area and which are required to pay a license tax upon a monthly or quarterly basis, excluding those businesses which pay quarterly license fees based upon average monthly gross receipts; and
B. When the amount of the license fee required by the provisions of Chapters 5.04 and 5.08, and subsequent amendments thereto, applies to permanent businesses located within said proposed area which pay a quarterly license tax based upon the amount of gross receipts from the sales of business transacted, the additional levy imposed shall be as follows:

1. An amount equal to one hundred (100) percent on gross annual sales up to five hundred thousand dollars ($500,000.00) per business,

2. An amount equal to fifty (50) percent on all portions of gross annual sales between five hundred thousand dollars ($500,000.00) and one million dollars ($1,000,000.00) per business, and

3. An amount equal to twenty-five percent (25) on all portions of gross annual sales exceeding one million dollars ($1,000.000.00) per business. (Prior code § 3-6.106)

3.28.070 Definitions and classifications.

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3.28.080 Collection of tax.

3.28.090 Exemption—Voluntary contributions.

3.28.100 Enforcement of provisions.

It shall be the duty of the director of finance and his or her designee deputies to enforce the provisions of this chapter. The director of finance and his or her designee deputies and the police officers shall have the power to enforce business license requirements as set forth in Chapter

5.04enter, free of charge, at any time, any place of business for which such license is required and to demand the exhibition of such license. It shall be the duty of all police officers to cause complaints to be filed against all persons violating any of the provisions of this chapter. (Prior code § 3-6.110)

3.28.110 Proposed uses.

3.28.120 Advisory board—Budget.

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For the sole purpose of advising the council and making recommendations on the operation and extent of the area, the methods and ways in which the revenue derived from the levy of the license tax imposed by this chapter shall be used within the scope of the purposes set forth in Section 3.28.110 , of this article, and to have and to perform such other powers and duties as the council may determine, there shall be created an advisory board, which shall consist of seven (7) members to be appointed by the mayor, with the concurrence of the council, for a term of one four (4) years, to serve at the pleasure of the mayor and the council, said members to be persons who have businesses within the area that pay an additional levy of license tax as provided for by this chapter. The council may, annually approve a budget , consistent with the budget cycle used by the City. to include an estimate of expenditures to be made to carry out the purposes of the central parking and business improvement area of the city. (Prior code § 3-6.112)

3.28.130 Regular and additional revenues—Deposits.

3.28.140 Central parking and improvement fund—Established.

There is established in the city a fund to be designated as the “central parking and improvement fund.” (Prior code § 3-6.201)

3.28.150 Central parking and improvement fund—Use of funds.

All revenues deposited in the central parking and improvement fund shall be used for the following purposes:

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14.G.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of the naming and dedication of the Freedom Park Playground in memory of Dan Chin, consistent with the Council Adopted Naming Policy.

RECOMMENDATION:

Recommendation: The City Council, by motion, approves the dedication and naming of the Freedom Park Playground in memory of Dan Chin.

BACKGROUND:

Dan Chin served on HanfHanford'sy Council from 2003 to 2012 and was selected as Mayor in 2003, 2006, and 2011. During his time on the Council, Dan advocated for the need for universally accessible playgrounds within the City. The Freedom Park playground was the first and only universally accessible playground within the City until 2021 when Centennial Park renovated its playground with a universally accessible playground providing this feature on the CityCity's side.

In 2020, the Hanford City Council adopted the Naming/Renaming Policy (attached) that provides clear direction for naming City-owned amenities. Dan Chin meets the criteria within that policy.

Excerpt from the Naming/Renaming Policy:

The criteria for naming rights will include the following:

The person or organization has a longstanding affiliation with the City of Hanford. • The name provides a sense of place, reflecting the geographic location, community, neighborhood, or street where the park, facility, or amenity is located. • The name recognizes the historical significance of the area or reflects the unique characteristics of the site
• The names of persons, organizations, corporations, foundations, or families will be considered when they have made a significant contribution to the City of Hanford by:
• Enhancing the quality of life and well-being of the City • Contributing to the historical or cultural preservation of the City • Making exemplary or meritorious contributions to the City

Where an individual is recommended, the person is preferred to be deceased a minimum of one year before the name is bestowed upon the facility or property. Consent shall be obtained from the

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individual's next of kin before the City Council considers it.

This item was brought to the Parks and Recreation Commission as an agenda item on May 13, 2024.

By vote, it was unanimously approved. Director Albert contacted Mr. Chin's brother, Clifford Chin, sister, Sandra Dawson, and Fiancée Laura Akers, who provided their consent and endorsement. If approved by the Council, signage will be installed in the playground in honor of Dan Chin.

FISCAL IMPACT:

The fiscal impact of this action will be the cost of the signage, estimated at $350.

ATTACHMENTS:

1. City of Hanford Naming Policy 11.12.20

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City of Hanford
Naming/Renaming Policy

I. Purpose

Establish guidelines relating to the naming, renaming, or removal of a name of City of Hanford facilities and property, such as parks, buildings, streets, and amenities at such locations.

II. Policy

The criteria for naming rights will include the following:
• The person or organization has a longstanding affiliation with the City of Hanford • The name provides a sense of place, reflecting the geographic location, community, neighborhood, or street where the park, facility, or amenity is located. • The name recognizes the historical significance of the area or reflects the unique characteristics of the site
• The names of persons, organizations, corporations, foundations, or families will be considered when they have made a significant contribution to the City of Hanford by:
o Enhancing the quality of life and well-being of the City o Contributing to the historical or cultural preservation of the City o Making exemplary or meritorious contributions to the City

Where the name of an individual is recommended, the person is preferred to be deceased a minimum of one year before the name is bestowed upon the facility or property. The consent shall be obtained from the individual's next of kin before the City Council's public consideration.

Where the naming opportunity is the result of financial contribution, the following must be considered:
• The significance of the contribution made is greater than 51% of the costs relative to the construction and/or operating costs of the parks, facilities, and amenities within those facilities.

III. Procedure

Upon the report and recommendation from the City Manager or Commission, the Council shall take action as it deems appropriate, including hearing any appeals that may be presented. The Council may also refer the recommendations to the City Manager or Commission for further discussion and review.

The City Council may remove or rename a city-owned facility or property when deemed by the Council to be in the City's best interests. The policy will not affect existing naming procedures.

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14.H.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Authorization to advertise for bids for the FY25 Annual Concrete Improvement Project and pre- authorize the City Manager to award and execute the contract on behalf of the City to the lowest responsible bidder for an amount not to exceed $130,000.00

RECOMMENDATION:

Recommendation: That the City Council, by motion, authorize staff to advertise for bids for the FY25 Annual Concrete Improvement Project and pre-authorize the City Manager to award and execute the contract on behalf of the City to the lowest responsible bidder.

BACKGROUND:

City of Hanford Municipal Code Section 12.20.030, as well as the California Streets and Highways Code, establishes the Duty of Property Owners to Maintain and Repair Sidewalks. Streets and Highways Code Section 5610, et seq., makes landowners responsible for maintaining public sidewalks located on or adjacent to their respective properties.

An essential duty under the Municipal Code mandates that property owners notify the City of any defects with the sidewalk adjacent to their property. Municipal Code Section 12.20.030.C. outlines the City's and the landowner's respective obligations for damaged sidewalks:

"The city will assess the extent of damage upon learning of an alleged defective sidewalk. The city will, at its own cost, grind the defective sidewalk to eliminate the hazard if grinding is feasible. If grinding will not eliminate the hazard, the city shall, at the city's expense, demolish and remove the defective portion of sidewalk, and the owner will, at the owner's sole cost, replace the portion of sidewalk removed by the city. The city shall, however, provide the services described in this subsection C only if the city determines that: (1) a defective sidewalk exists; and (2) the sidewalk's defective condition was not caused by the intentional misconduct or negligence of the owner or the owner's employee, agent, invitee, or contractor. For purposes of this chapter, damage to a sidewalk by tree roots shall not be deemed to have been caused by the intentional misconduct or negligence of a landowner. If the city reasonably determines that the defective sidewalk was caused by the intentional misconduct or negligence of the owner or the owner's employee, agent, invitee, or contractor, the owner shall be solely responsible for all repair work required to address the hazard."

At the time that Municipal Code Section 12.20.030.C. was adopted, the City Council determined that landowners should not be responsible for all costs associated with sidewalk repairs.

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City staff also identified areas that require ADA improvements. Areas are identified by public reporting, ADA issues, and projects that require improvements to be made. In FY24, City staff demoed and/or repaired 304 linear feet of curb and gutter, 6 ADA ramps, and 3,935 square feet of sidewalk.

FISCAL IMPACT:

The FY25 CIP budget provides $130,000 for concrete improvements and is split between three funds. 0359 Storm Drain Fund for $20,000.00, 0056 TDA Transportation Funds for $50,000, 0044 Gas Tax for $60,000. A copy of the budget pages is attached for review.

ATTACHMENTS:

1. Curb and Gutter Budget Page

2. Sidewalk Budget Page

3. ADA Budget Page

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14.I.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Public Works: Approval of a Purchase Order change order (PO 22400342) in the amount of $4,000 with Corcoran Sawtelle & Rosprim, Inc to replace stainless steel sheet on a water truck; for a Purchase Order grand total of $53,995.

RECOMMENDATION:

That the City Council, by motion, approve a Purchase Order change order with Corcoran Sawtelle & Rosprim, Inc (Corcoran, CA) to replace stainless steel sheet on a water truck for a Purchase Order grand total of $53,995 for fiscal year 2023/2024.

Recommended Motion:

I move to approve a Purchase Order change order with Corcoran Sawtelle & Rosprim, Inc (Corcoran, CA) to replace stainless steel sheet on a water truck for a purchase order grand total of $53,995 for fiscal year 2023/2024.

BACKGROUND:

Corcoran Sawtelle & Rosprim, Inc provides welding and fabricating services for the City.

Approximately $49,000 is designated for these services.

Corcoran Sawtelle & Rosprim, Inc is one of a few vendors that provides specialized welding and fabrication services in the area. They have the resources to complete projects in a timely manner, and their prices tend to be the lowest. The City has equipment and trained staff to work on welding and fabrication projects that are considered small to medium. Any large-scale projects are outsourced to vendors that have the equipment and experience to accomplish the tasks. Some examples of large-scale projects include repairing the rear loaders on refuse trucks and replacing steel sheets on water trucks.

FISCAL IMPACT:

The Fleet Maintenance Division budget appropriated $171,030 for Professional and Specific Services and $620,000 for Special Departmental Expenses.

ATTACHMENTS:

None

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14.J.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of the Notice of Completion for the FY 22/23 Civic Auditorium Acoustic Ceiling Texture Replacement, Hardwood Flooring Installation, and Interior Painting Project.

RECOMMENDATION:

Recommendation:

That the City Council, by motion, approve the Notice of Completion for the FY 22/23 Civic Auditorium Acoustic Ceiling Texture Replacement, Hardwood Flooring Installation, and Interior Painting Project for a final project cost of $636,353.06, and authorize the Mayor to execute and the City Clerk to file said Notice with the Kings County Recorder's Office.

BACKGROUND:

On December 5th, 2023, the City Council approved the award of the “FY 22/23 Civic Auditorium Acoustic Ceiling Texture Replacement, Hardwood Flooring Installation, and Interior Painting Project” to Sage Construction and Development LLC for the amount of $601,630.04. This project involved the removal and replacement of the acoustic ceiling texture, installation of new wood flooring over the existing floors, and interior painting in the main auditorium and lobby of the Civic Auditorium.

There were five (5) contract change orders for this project, resulting in a net increase of $34,732.02 to the original contract. Project construction began on January 3, 2024. During this period, unforeseen conditions arose which were not contemplated by the plans or specifications, necessitating additional work as shown in the Final Project Construction and Finance History (attached). These unforeseen conditions required prompt direction from the contractor to avoid costly interruptions and were essential for the management and control of the contracts. This resulted in the project completion date being extended by ten (10) additional days. However, the contractor ultimately completed all work on May 6th, only three (3) days past the original contract date.

All change orders were negotiated to the lowest possible cost, prepared, and captured all additional work outside the original scope of the project. The additional costs resulting in a change of scope were within the project contingencies and approved by the City Manager.

FISCAL IMPACT:

The FY23 Capital Budget provided $661,630.91 for construction, including contingencies, was approved by the City Council on December 5, 2023 funded with Genral Fund, Building Reserve Fund and Accumulated Capital Outlay (ACO) Fund. The bid amount was $601,630.04, and change orders amounted to $34,723.02. Therefore, the total project expenditures were $636,353.06, leaving a fund balance of +$25,277.85. Remaining funds will be released back to General Fund and ACO fund

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balance.

ATTACHMENTS:

1. NOC - Recording Original (Word)

2. NOC - Recording Original (PDF)

3. Final Project Construction & Financial History Report

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RECORDING REQUESTED BY:

CITY OF HANFORD
When recorded return to:

City Clerk
City of Hanford
315 North Douty Street
Hanford, California 93230-3951

G.C. 27361.3 - Fee NIL

NOTICE OF COMPLETION
TO WHOM IT MAY CONCERN:

YOU ARE HEREBY NOTIFIED AS FOLLOWS:

1. The work of Improvement is located: 400 N Douty St, Hanford, CA 93230

2. The Improvement is particularly described as: FY 22/23 Civic Auditorium Acoustic Ceiling Texture Replacement, Hardwood Flooring Installation, and Interior Painting Project.

3. The date of completion of the work of Improvement: May 6th, 2024

4. The Owner of the work of Improvement: City of Hanford.

5. The nature of the owner’s interest or estate: Fee Simple Title.

6. The name of the original contractor for the work of Improvement: Sage Construction & Development LLC

7. The surety for the work of Improvement: SureTec Insurance Company

8. All work for this project has been completed.

9. Accepted by minute action of the City Council of the City of Hanford on: June 4, 2024 I certify under penalty of perjury that the foregoing is true and correct.

Dated this 4th day of June 2024

BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of California
I, the undersigned, say:

I am the person who signed the foregoing notice. I have read the above notice and know its contents, and the facts stated therein are true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct.

Executed at Hanford, California, this ______ day of _____________, 2024.

BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of California
Authority: Section 1181 Civil Code

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RECORDING REQUESTED BY:

CITY OF HANFORD

When recorded return to:

City Clerk
City of Hanford
315 North Douty Street
Hanford, California 93230-3951

G.C. 27361.3 - Fee NIL

NOTICE OF COMPLETION

TO WHOM IT MAY CONCERN:

YOU ARE HEREBY NOTIFIED AS FOLLOWS:

1. The work of Improvement is located: 400 N Douty St, Hanford, CA 93230

2. The Improvement is particularly described as: FY 22 /23 Civic Auditorium Acoustic Ceiling Texture Replacement, Hardwood Flooring Installation, and Interior Painti ng Project.

3. The date of completion of the work of Improvement: May 6th, 2024

4. The Owner of the work of Improvement: City of Hanfo rd.

5. The nature of the owner’s interest or estate: Fee Simple Title.

6. The name of the original contractor for the work of Improvement: Sage Construction & Development LLC

7. The surety for the work of Improvement: SureTec Ins urance Company

8. All work for this project has been completed.

9. Accepted by minute action of the City Council of th e City of Hanford on: June 4, 2024

I certify under penalty of perjury that the forego ing is true and correct.

Dated this 4th day of June 2024

BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, State of Califo rnia

I, the undersigned, say:

I am the person who signed the foregoing notice. I have read the above notice and know its contents, and the facts stated therein are true of my own knowledge.

I declare under penalty of perjury that the foregoi ng is true and correct.

Executed at Hanford, California, this ______ day of _____________, 2024.

BY: ________________________________________
Travis Paden, Mayor
City of Hanford, County of Kings, Sta te of California

Authority: Section 1181 Civil Code

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June 20, 2023

TO: Mayor/City Council

FROM: Robert Buchanan, Assistant Engineer

SUBJECT: FY 22/23 Civic Auditorium Acoustic Ceiling Texture Replacement, Hardwood Flooring Installation, and Interior Painting Project

RECOMMENDATION

BACKGROUND

On December 5th. 2023, the City Council approved the award of the “FY 22/23 Civic Auditorium Acoustic Ceiling Texture Replacement, Hardwood Flooring Installation, and Interior Painting Project” to Sage Construction and Development LLC for the amount of $601,630.04. This project involved the removal and replacement of the acoustic ceiling texture, installation of new wood flooring over the existing floors, and interior painting in the main auditorium and lobby of the Civic Auditorium.

There were five (5) contract change orders for this project, resulting in a net increase of $34,732.02 to the original contract. Project construction began on January 3, 2024. During this period, unforeseen conditions arose which were not contemplated by the plans or specifications, necessitating additional work as shown on the Final Project Construction and Finance History attached. These unforeseen conditions required prompt direction from the contractor to avoid costly interruptions and were essential for the management and control of the contracts. This resulted in the project completion date being extended by ten (10) additional days. However, the contractor ultimately completed all work on May 6th, only three (3) days past the original contract date.

IMPACT ON BUDGET

The FY23 Capital Budget provided $661,630.91 for construction, including contingencies, was approved by the City Council on December 5, 2023. The bid amount was $601,630.04, and change orders amounted to $34,723.02. Therefore, the total project expenditures were $636,353.06, leaving a fund balance of +$25,277.85.

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FINAL PROJECT CONSTRUCTION AND FINANCE HISTORY

PROJECT: FY 22/23 Civic Auditorium Acoustic Ceiling Textur e Replacement, Hardwood Flooring Installation, and Interior Painting Project
CONTRACTOR: Sage Construction & Development LLC
116 E. Prosperity Ave #902
Tulare Ca 93274

CONTRACT DATES: Council Award December 5, 2023
Bid Opening November 8, 2023
Contractor Started Work January 3, 2024
Contract Time of Completion May 13, 2024
Contractor Completed Work May 6, 2024

Contract Change Order Amount $
CCO#1 - Ceiling Plaster Repair $ 14,809.60
CCO#2 - Subcontractor Substitution $ - CCO#3 - Floor Electrical Boxes $ 17,745.92
CCO#4 - Floor Trans -Stage and Women's Restroom $ 1,225.00 CCO#5 - Repaint Medallions & Additional Touch up Area $ 942.50 TOTAL: $ 34,723.02

FINANCIAL HISTORY:

REVENUE OF PROJECT FUNDING
ACO & Building Reserve Fund $484,096.91
General Fund $113,254.00
Advance FY25 Fund 004 ACO $64,280

TOTAL BUDGET FUNDING $661,630.91

PROJECT EXPENDITURE:

Hanford Sentinel - Project Advertisement
Building Permit Fees
Sage Construction & Development LLC

BID AMOUNT: $601,630.04
CONTRACT CHANGE ORDERS: $34,723.02

TOTAL CONSTRUCTION COST $636,353.06

FUND BALANCE +$25,277.85

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14.K.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of a Grant Deed from San Joaquin Valley Homes Tract 881 Unit 1, Lots 45 & 46 and Authorization for the City Clerk to record said documents with the Kings County Recorder’s Office for the purpose of accepting Landscape Lot dedications.

RECOMMENDATION:

Recommendation: That the City Council, by motion, approve the attached Grant Deed from San Joaquin Valley Homes Tract 881 Unit 1, Lots 45 & 46; and authorize the City Clerk to record said documents with the Kings County Recorder’s Office.

BACKGROUND:

The final subdivision map for Tract No. 881, Unit No. 1 was recorded on January 18, 2024. Following the recording, construction began and an AT&T utility vault was discovered. Due to the location of the vault, adjustments were made to the property lines, transferring 29 square feet from Lot 45 and 159 square feet from Lot 46 to the City for public utility and landscaping purposes.

FISCAL IMPACT:

This dedication was offered as part of a development approval. Landscape maintenance will be achieved through CFD (Community Facilities District) Funds and therefore has no impact on the City budget.

ATTACHMENTS:

1. Tract 881 Unit 1 Final Map (Page 3)

2. Lot 45 Grant Deed Landscape Dedication

3. Lot 46 Grant Deed Landscape Dedication

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14.L.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Authorization to enter into a Reimbursement Agreement for $25,000 in Preliminary Engineering Services with Union Pacific Railroad Company for design of the at-grade crossing on East Lacey Boulevard.

RECOMMENDATION:

Recommendation: That the City Council, by motion, authorize the City Manager to sign and the City to enter into a Reimbursement Agreement for $25,000 in Preliminary Engineering Services with Union Pacific Railroad Company for widening the at-grade crossing on East Lacey Boulevard.

Recommended Motion: I motion to approve authorization for the City Manager to sign, and the City to enter into, a Reimbursement Agreement for $25,000 in Preliminary Engineering Services with Union Pacific Railroad Company for widening the at-grade crossing on East Lacey Boulevard.

BACKGROUND:

On September 20, 2022, the City Council awarded the Design Engineering for East Lacey Boulevard Pedestrian and Bicycle Safety project from 10th Avenue to east of Sierra Drive to QK, Inc. The project includes installing curb and gutter and sidewalk within the project limits and widening the Union Pacific Railroad (UPRR) crossing on East Lacey to accommodate the roadway improvements with curb alignments.

UPRR was contacted by the design consultant regarding the roadway project and the need for the railroad crossing to be widened with East Lacey Boulevard street improvements. UPRR noted that the current railroad crossing is compliant, and that any modifications to the crossing would be at the cost of the City. A separate agreement will be provided to bore under the UPRR on 9th Avenue north of Lacey Boulevard.

The City was recently provided the attached Reimbursement Agreement stating that the city will bear 100% of the cost for design, with payments to be made monthly on services performed. The estimated cost for the Preliminary Engineering services for the railroad crossing design is $25,000, with future construction costs to be determined and paid 100% by the City.

Upon approval of the railroad crossing plans by UPRR and prior to construction, the City will be provided a Construction and Maintenance Agreement for approval which will provide the terms for construction and ongoing maintenance of the crossing.

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With the approval of the agreement, UPRR will be allowed to proceed with the design of the crossing widening. The project is anticipated to begin construction in Spring 2025.

FISCAL IMPACT:

The 23/24 Capital Improvement budget provides the funding for Engineering and Design for the East Lacey Boulevard Improvements project. The design costs for the railroad at-grade crossing design will be funded through the congestion Mitigated Air Quality grant fund (CMAQ: 0055-26720000- 823619). Once approved, a Purchase Order for $25,000 will be established that UPRR will be able to bill against on a monthly basis.

ATTACHMENTS:

1. UPRR Reimbursement Agreement - Preliminary Engineering Services

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1 UPRR REMS
Project 794313

REIMBURSEMENT AGREEMENT

PRELIMINARY ENGINEERING SERVICES

Effective Date:

Estimate: $25,000.00

THIS REIMBURSEMENT AGREEMENT ( Agreement) is made and entered into as of the Effective Date , by and between UNION PACIFIC RAILROAD COMPANY, a Delaware corporation (Railroad), and CITY OF HANFORD, CALIFORNIA (Agency).

RECITALS
A. Agency desires to initiate the project more particularly described on Exhibit A attached hereto (the Project).

B. The Project will affect Railroad's track and right of way at or near the Project area more particularly described on Exhibit A.

C. Railroad agrees to collaborate with Agency on the conceptualization and development of the Project in accordance with the terms and conditions of this Agreement.

AGREEMENT
NOW THEREFORE, the parties hereto agree as follows:

1. Railroad, and/or its representatives, at Agency's sole cost and expense, agrees to perform (or shall cause a third -party consultant to perform on Railroad's behalf) the preliminary engineering services work described on Exhibit B attached hereto ( PE Work). Agency acknowledges and agrees that: (a) Railroad's review of any Project designs, plans and/or specifications, as part of the PE Work, is limited exclusively to potential impacts on existing and future Railroad facilities and operations; (b) Railroad makes no representations or warranties as to the validity, accuracy, legal compliance or completeness of the PE Work; and (c) Agency's reliance on the PE Work is at Agency's own risk.

2. Notwithstanding the Estimate (Estimate), Agency agrees to reimburse Railroad and/or Railroad's third -party consultant, as applicable, for one hundred percent (100%) of all actual costs and expenses incurred for the PE Work. During the performance of the PE Work, Railroad will provide (and/or will cause its third-party consultant to provide) progressive billing to Agency based on actual costs in connection with the PE Work. Within sixty (60) days after completion of the PE Work, Railroad will submit (and/or will cause its third -party consultant to submit) a final billing to Agency for any balance owed for the PE Work. Agency shall pay Railroad (and/or its third -party consultant, as applicable) within thirty (30) days after Agency's receipt of any progressive and final bills submitted for the PE Work. Bills will be submitted to the Agency using the contact information provided on Exhibit C. Agency's obligation hereunder to reimburse Railroad (and/or its third-party consultant, as applicable) for the PE Work shall apply regardless if Agency declines to proceed with the Project or Railroad elects not to approve the Project.

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2 3. Agency acknowledges and agrees that Railroad may withhold its approval for the Project for any reason in its sole discretion, including without limitation, impacts to Railroad's safety, facilities or operations. If Railroad approves the Project, Railroad will continue to work with Agency to develop final plans a nd specifications and prepare material and force cost estimates for any Project related work performed by Railroad.

4. If the Project is approved by Railroad, Railroad shall prepare and forward to Agency a Construction and Maintenance Agreement (C&M Agreement) which shall provide the terms and conditions for the construction and ongoing maintenance of the Project. Unless otherwise expressly set forth in the C&M Agreement, the construction and maintenance of the Project shall be at no cost to Railroad. No cons truction work on the Project affecting Railroad's property or operations shall commence until the C&M Agreement is finalized and executed by Agency and Railroad.

5. Neither party shall assign this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld, conditioned or delayed.

6. No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties.

7. This Agreement sets forth the entire agreement between the parties regarding the Project and PE Work. To the extent that any terms or provisions of this Agreement regarding the PE Work are inconsistent with the terms or provisions set forth in any existing agreement related to the Project, such terms and provisions shall be deemed superseded by this Agreement to the extent of such inconsistency.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

CITY OF HANFORD, CALIFORNIA UNION PACIFIC RAILROAD COMPANY, a Delaware Corporation

Signature Signature

Kenneth Tom
Printed Name Printed Name

Manager I, Engineering – Public Projects
Title Title

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Exhibit A
Project Description and Location

Project Description

City of Hanford, CA proposes reconstruction and widening of the existing at-grade crossing location referred to below.

Location

Hanford Subdivision

DOT

Crossing Type Milepost

Street Name
750817J Public 227.495 Lacy Boulevard

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Exhibit B
Scope of Project Services

Scope of work includes, but is not limited to the following

 Field diagnostic(s) and inspections
 Plan, specification and construction review
 Project design
 Preparation of Project estimate for force account or other work performed by the Railroad
 Meetings and travel

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Exhibit C
Billing Contact Information

Name Lisa Dock
Title
Address 900 S 10th Avenue, Hanford, CA, 93230
Work Phone (559) 585-2655
Cell Phone
Email [email protected]
Agency
Project No.

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14.M.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of two (2) Change Orders, totaling $84,340, for East Lacey Boulevard Preliminary Engineering Services with QK to provide NEPA and Traffic Analysis services as required by new state and federal funding secured for the project.

RECOMMENDATION:

Recommendation: That the City Council, by motion,

1. Authorize a change order in the amount of $26,050.00 to the existing Preliminary Engineering contract with QK for Traffic Analysis services; and

2. Authorize a change order in the amount of $58,290.00 to the existing Preliminary Engineering contract with QK for NEPA Analysis services.

BACKGROUND:

On September 20, 2022, the City Council awarded the Design Engineering for East Lacey Boulevard from 10th Avenue to east of Sierra Drive to QK, Inc. for the amount of $869,482.00. The project includes preparing plans, specifications, and estimates (PS&E) construction documents for installing curb and gutter and sidewalk within the project limits and to provide pedestrian and bicycle safety improvements. The city has received the 60% design plans, and the final construction documents are currently scheduled to be completed in December 2024.

The East Lacey Boulevard street improvements received CMAQ/Pedestrian and Bicycle Safety Improvements grants in the amount of $544,200 for preliminary engineering. The grants are state funded and the city must follow state guidelines and processes for the project, including CEQA environmental clearance. The East Lacey Boulevard project has completed the CEQA clearance.

The goal of the grant funding is to provide safety for pedestrians and bicycles along the corridor andto reduce greenhouse emissions.

In March 2024, the City received a Senate Earmark grant from Senator David Valadao in the amount of $7.3 million for the construction of East Lacey Boulevard improvement project. This is federal funding and the city is required to follow federal project development guidelines and processes, including NEPA clearance for the project. The NEPA, like the CEQA, will analyze the roadway segment along with the railroad crossing, the basins, and any easements for environmental issues. For the city to utilize the federal earmark funding, a Federal NEPA must be completed.

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NEPA Analysis (National Environmental Protection Agency) Services:

NEPA is a federal agency for environmental protection, and any time federal money is provided to a project, a NEPA environmental clearance must be approved along with any mitigation measures required. The segment of East Lacey Boulevard between 10th Avenue to east of Sierra Drive did not originally require NEPA analysis because the project was being constructed with state and local funding.

For the city to receive the federal grant monies, a NEPA must be approved for East Lacey Boulevard improvement project. The consultant has provided a cost and timeline for the environmental services which are attached for Council review (Attachment 3 and 4). Included in the cost proposal is the preparation of the NEPA document along with the presumed technical studies that will be required for the project.

With previous similar projects, Caltrans has prepared NEPA studies for Air Quality, Biological Survey, and Cultural Resources. If Caltrans prepares the studies for the East Lacey project, the cost for the technical studies would be excluded.

Per the attached proposal, the consultant will prepare a NEPA analysis along with technical studies for $58,290.00, with additional City and Caltrans coordination performed on a Time and Materials basis. The initial NEPA submittal to Caltrans will take 8 weeks to complete. Caltrans typically processes NEPA authorization in 60 days, and may identify additional environmental studies to be completed. It is estimated that the process will take approximately 15 weeks to complete with technical studies. The project is currently anticipated to begin construction in Spring 2025.

Once the NEPA is approved, the city can apply for the Right of Way phase to begin acquiring right of way. The process to acquire right of way requires that the NEPA be approved before any conversations with property owners occur. Staff is currently in the process of preparing a Request for Proposals (RFP) for the Appraisal and Acquisition services for the project.

2. Traffic Analysis Services:

In September 2021, the City received a State of California Pedestrian and Bicycle Safety Improvements grant for preliminary engineering. The total amount of grant funding for preliminary engineering is $544,200.00. The goal of the grant is to improve pedestrian and bicycle safety by completing sidewalks and providing other bicycle safety improvements.

Further, staff has been holding regular meetings with High-Speed Rail Authority to discuss the station improvements and progress. Since East Lacey Boulevard will serve as a connecting corridor from Downtown to the station, the City has the opportunity to make improvements to transform Lacey Boulevard into a landmark entrance and compatible to provide complete streets for all modes of transportation.

'Complete Streets' is a transportation policy and design approach that aims to make streets safe, comfortable, and accessible for all users, regardless of their mode of transportation. In 2008, AB 1358, the Complete Streets Act, required all cities and counties in California to consider all users of public streets in all future General Plan updates. (Attachment 6 and 7)

This concept encompasses a wide range of street types and design elements to accommodate pedestrians, bicyclists, motorists, and public transit users of all ages and abilities. The goal of complete streets is to create inclusive, equitable, and sustainable urban environments that promote healthier lifestyles and reduce environmental impacts.

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Some key characteristics and benefits of complete streets are:

1. Pedestrian Friendly Design – Increase walkability through widened sidewalks, crosswalks, pedestrian refuge islands, and curb bulb-outs.

2. Bicycle Infrastructure – protected bike lanes or trails, bike parking, and bike signals and signs.

3. Public Transit Accessibility – convenient and safe transit stops, shelters and seating at bus stops, and accessible pathways to and from transit.

4. Traffic Calming Measures – narrower traffic lanes to slow vehicle speeds, roundabouts or traffic circles, and raised crosswalks.

5. Green Infrastructure – street trees and landscaping, and rain gardens and pavements for storm water management.

6. Universal Design Principles – accessible features for people with disabilities, and consideration for all ages including children and elderly.

The current Design Masterplans were prepared for East Lacey Boulevard from 10th Avenue to east of Sierra Driver prior to the award of PS&E design. The masterplans provided the alignment, curb and gutter preliminary grade design, and stormdrain, sewer, and water design. The masterplan design provided for an 80’ curb to curb width which includes two travel lanes in each direction with a dual left median turn lane. The design provides 8’ sidewalks, which is a complete streets design feature. However, with four travel lanes and a dual left turn median, there is insufficient space to accommodate bike lanes.

The City of Hanford Pedestrian and Bicycle Master Plan was adopted in January 2016. The masterplan includes the 2035 Bicycle Plan map (Attachment 5) which is attached for Council review.

The map shows East Lacey Boulevard as a Proposed Class 3 Bike Route, which is a "Shared Use" type facility. The concept of complete street design provides designated bike lanes to provide additional safety to users.

Staff has considered the goal of the grant with complete streets, and determined that it is necessary to study and verify this one time opportunity to provide a complete street with East Lacey Boulevard that will allow for designated bicycle lanes and pedestrian safety improvements including bulb outs, shade trees, designated bicycle lanes and safe intersection crossings.

Performing a traffic analysis will look at future traffic patterns and volumes and may project additional right of way needs at intersections. If the analysis finds a complete street is feasible, the city will have the opportunity to provide a complete street that is safe for all modes of transportation.

A traffic study needs to be conducted to determine the projected traffic capacity on East Lacey with a goal of achieving safe transportation for all users by reducing lanes and providing a raised median. Revising the 60% improvement plans would require some additional design and costs.

The profile and curb alignments would not change, but safety features including curb bulb-outs, raised medians, and bicycle lanes would be incorporated into the project.

Attached for Council review is the proposal scope and cost for the Traffic Analysis (Attachments 1 and 2). QK currently has the sub-consultant JLB Traffic Engineers on the East Lacey Boulevard team to perform the services. Staff recommends that the traffic analysis services be performed to determine if designated bicycle lanes and complete street improvements can be an option on East Lacey Boulevard.

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FISCAL IMPACT:

The FY 23/24 Capital Improvements Budget provides funding for the preliminary engineering phase of this project. The City has received funding from the Pedestrian Facilities ATP grant and CMAQ grant in the amount of $544,200 for Preliminary Engineering. There is a remaining $332,000 to cover the cost of this work.

ATTACHMENTS:

1. 1. CCO2 - Traffic Analysis Cover Sheet

2. 2. CCO2 - Scope and Cost

3. 3. CCO3 - NEPA Cover Sheet

4. 4. CCO3 - Scope and Cost for NEPA

5. 5. 2035 Bicycle Plan Map

6. 6. Complete Streets

7. 7. Incomplete Street

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CITY OF HANFORD
D e p a r t m e n t o f P u b l i c W o r k s
900 South 10th Ave. • HANFORD, CA 93230-5234 • (559) 585-2550 ENGINEERING DIVISION CONTRACT CHANGE ORDER NO. 2 REV. NO. ___ PROJECT East Lacey Blvd. Pedestrian Facilities Project – PS&E SHEET 1 OF 1 TO CONTRACTOR: QK CONTRACT NO. 21800000-823619.

YOU ARE HEREBY DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES FROM THE PLANS AND SPECIFICATIONS OR DO THE FOLLOWING DESCRIBED WORK NOT INCLUDED IN THE PLANS AND SPECIFICATIONS ON THIS CONTRACT.

NOTE: THIS CHANGE ORDER IS NOT EFFECTIVE UNTIL APPROVED BY THE CITY.

Contract Amount: $869,482.90
CCO#1 $49,088.36
DESCRIPTION OF WORK TO BE DONE, ESTIMATE OF QUANTITIES AND PRICES TO BE PAID. SEGREGATE BETWEEN ADDITIONAL WORK AT CONTRACT PRICE, AGREED PRICE AND FORCE ACCOUNT. UNLESS OTHERWISE STATED, RATES FOR RENTAL OF EQUIPMENT COVER ONLY SUCH TIME AS EQUIPMENT IS ACTUALLY USED AND NO ALLOWANCE WILL BE MADE FOR IDLE TIME.

CHANGE REQUESTED BY: City of Hanford
THE LAST PERCENTAGE SHOWN IS THE NET ACCUMULATED INCREASE OR DECREASE FROM THE ORIGINAL QUANTITY IN THE ENGINEER’S ESTIMATE.

1. Prepare a Traffic Operational Analysis Report to determine if Lacey Boulevard between 10th Avenue and Sierra Drive will operate at acceptable LOS and operations into the Cumulative Year 2046 as a two-lane collector with a center divided median, or if it will need to be a four-lane collector with a continuous TWLTL in the center as previously planned.

For a net increase of $26,050.00.

ESTIMATED COST THIS CHANGE: $26,050.00
CONTRACT TOTAL, INCLUDING THIS CHANGE $944,621.26
BY REASON OF THIS ORDER THE TIME OF COMPLETION WILL BE AS FOLLOWS: 14 weeks added for Traffic Analysis

APPROVAL RECOMMENDED, ENGINEER _________________________________________________ DATE ________________ APPROVED, CITY OF HANFORD __________________________________________________________ DATE __________________

WE, THE UNDERSIGNED CONTRACTOR, HAVE GIVEN CAREFUL CONSIDERATION TO THE CHANGE PROPOSED AND HEREBY AGREE

IF THIS PROPOSAL IS APPROVED, THAT WE WILL PROVIDE ALL EQUIPMENT, FURNISH ALL MATERIALS, EXCEPT AS MAY

OTHERWISE BE NOTED ABOVE, AND PERFORM ALL SERVICES NECESSARY FOR THE WORK ABOVE SPECIFIED, AND WILL ACCEPT

AS FULL PAYMENT THEREFOR THE PRICES SHOWN ABOVE
ACCEPTED, DATE ____________________________ CONTRACTOR _ ___________________ BY _________________________________________ TITLE ________________________________________________________________________

IF THE CONTRACTOR DOES NOT SIGN ACCEPTANCE OF THIS ORDER, HIS ATTENTION IS DIRECTED TO THE REQUIREMENTS OF THE SPECIFICATIONS AS TO PROCEEDING WITH THE ORDERED WORK AND FILING A WRITTEN PROTEST WITHIN THE TIME THEREIN SPECIFIED.

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May 24, 2024
Lisa Dock
City Engineer
City of Hanford
900 S. 10th Avenue
Hanford, CA 93230
Subject: Lacey Boulevard Widening Project Revised Cost Proposal – Lacey Road Diet Dear Ms. Dock:

Based on our recent discussions, enclosed is an extra work proposal for traffic engineering services relating to the investigation of a long-term road diet solution for the Lacey Boulevard Widening Project from 10th Avenue to Sierra Drive for the City of Hanford.

Thank you for your continued confidence with the QK team. If you have any questions or would like to discuss this proposal further, please contact John Doyel or Jeff Cowart at (559) 733-0440. We look forward to beginning this work upon your approval.

Sincerely,
John Doyel Jeff Cowart, PE
Project Manager/Director of Municipal Services VP of Technical Services Enclosure: Scope of Services and Fee Estimate
cc: John Doyel, QK
P240268/220295.03
jd/jc

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Scope of Services and Fee Estimate
Lacey Boulevard Widening Project Traffic Operational Analysis Report City of Hanford Page 1 of 3
Lacey Boulevard Widening Project TOAR Proposal
May 24, 2024

BACKGROUND
Quad Knopf, Inc. (dba QK) has completed 60% plan sets for the Lacey Boulevard Widening Project from 10 th Avenue to Sierra Drive. During the design and preparation of these plans, the City of Hanford was able to obtain a Federal earmark for $7.3 million. That additional funding has made the City rethink the design of East Lacey Boulevard and wishes to consider a road diet for Lacey Boulevard that would allow for one travel lane each direction, center divided median, bike lanes and parking on both sides of the street.

PROJECT DESCRIPTION AND UNDERSTANDING
The project location is East Lacey Boulevard from 10th Avenue to approximately 150 feet east of Sierra Drive. This project has received grant funding through a Federal Active Transportation Program grant (ATP). Additionally, funding for the traffic signal is through a Federal Congestion Mitigated Air Quality grant. The grant funding is for the Preliminary Engineering (PE) phase of the projects.

The Traffic Operational Analysis Report (TOAR) will analyze if Lacey Boulevard between 10th Avenue and Sierra Drive could operate at acceptable LOS and operations into the Cumulative Year 2046 as a two-lane collector with a center divided median or if it will need to be a four-lane collector with a continuous TWLTL on center as previously planned.

As part of the Project a TOAR analysis will be prepared to determine the most appropriate number of travel lanes for Lacey Boulevard while considering projected changes in traffic volumes and travel patterns. Task 1 will include Project coordination, meetings, and conference calls (if any) requested by the City, Task 2 includes the finalization of the Kings County Association of Governments (Kings CAG) Modeling request, and Task 3 would include the preparation of the TOAR.

SCOPE OF SERVICES
TASK 1.0 PROJECT MANAGEMENT
QK will coordinate all project deliverables with the City of Hanford. At the request of the City or QK, QK and the subconsultant representative will attend meetings and conference calls. It is assumed that a maximum of two one-hour meetings requested by the City will be needed and that these would be virtual meetings.

TASK 2.0 KINGS CAG MODELING REQUEST
QK and its subconsultant will review and define the traffic analysis zone (TAZ) boundaries and link segments in the Kings CAG model for the Base Year and Cumulative Year (2046) Scenarios. For the Cumulative Years 2046, Lacey Boulevard within the project limits will be modeled with two and four lanes respectively (two alternatives). A technical letter requesting the appropriate modeling will be completed and submitted to Kittelson Associates (KA) modeler for Kings CAG. This technical letter along with exhibits and tables as appropriate will identify any land use, link network, and TAZ zone modifications for all the study scenarios. It is important that the Kings CAG Model accurately reflects the link, and TAZ network within the study area under all scenarios to be analyzed. This allows the traffic consultant to accurately project changes in traffic patterns because of network changes.

Deliverables:
• Kings CAG Modeling Request

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City of Hanford Page 2 of 3
Lacey Boulevard Widening Project TOAR Proposal
May 24, 2024
TASK 3.0 PREPARE TRAFFIC OPERATIONAL ANALYSIS REPORT (TOAR) QK and subconsultant will perform a site visit to observe existing traffic conditions, especially during the a.m. and p.m. peak hours, existing roadway conditions, including geometrics and traffic controls, will be verified. An evaluation will be conducted of the existing and planned circulation network to include the study intersections, and roadway segments. Additional tasks will be conducted as follows:
• Forecast trip distribution will be made based on turn count information and knowledge of the existing and planned circulation network in the vicinity of the Project. • Evaluate existing and forecast future levels of service (LOS) at the study intersection(s) and/or segment(s). HCM 6 methodologies will be utilized as appropriate to perform this analysis for the a.m. and p.m. peak hours.
• Intersection LOS will be prepared in Synchro software, while segment level of service will be performed in HCS7 software.
• Identify the cause(s) of poor level of service and proposed improvement measures (if any).

Forecast and analyze traffic volumes for the following scenarios:

1. Existing traffic conditions with needed improvements (if any);

2. Cumulative Year 2046 plus Project Alternative 1 traffic conditions with proposed improvement measures (if any); and

3. Cumulative Year 2046 plus Project Alternative 2 traffic conditions with proposed improvement measures (if any).

Peak hours to be analyzed (Tuesday, Wednesday, or Thursday only):

The AM and PM 2-hour peak periods will be determined upon collection the 24-hour volume counts.

It is estimated that these will be between 7:00 to 9:00 am and between 4:00 and 6:00 pm.

1. 2 Hour AM Peak Period

2. 2 Hour PM Peak Period
Intersections proposed to be analyzed:

1. Lacey Boulevard at 10th Avenue

2. Lacey Boulevard at 9 1/4 Avenue

3. Lacey Boulevard at 9th Avenue
A queuing analysis is included in the proposed scope of work for the study intersections. Queuing will be for all study scenarios. This analysis will be utilized to recommend minimum storage lengths for left and right turn lanes at all study intersections.

Segments Proposed to be analyzed:

A segment LOS analysis will be completed for the following segments.

1. Lacey Boulevard between 10th Avenue and 9 1/4 Avenue

2. Lacey Boulevard Between 9 1/4 Avenue and 9th Avenue

3. Lacey Boulevard between 9th Avenue and Sierra Drive Preparation of TOAR:

Based on the scope of work described above, a Draft TOAR will be prepared. The Draft TOAR will include tables and graphics summarizing the results and conclusions of the study accompanied by a technical appendix. Minor comments to the Draft TOAR can be incorporated prior to the Draft TOAR being provided to the City for its distribution within City departments for their review and comment. Revise the Draft TOAR considering the affected agency’s comments from the review of the Draft TOAR and prepare a Final TOAR.

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City of Hanford Page 3 of 3
Lacey Boulevard Widening Project TOAR Proposal
May 24, 2024
Deliverables:
•Draft TOAR in PDF format
•Final TOAR in PDF format

SCHEDULE
Task Description Duration

1.0 Project Management 14 weeks

2.0 Kings CAG Modeling Request 2 weeks

3.0 Prepare Traffic Operational Analysis (TOAR) 12 weeks

FEE ESTIMATE
Tasks 1.0 through 3.0 will be billed on a Fixed Fee (FF) basis as shown in the following table.

Task Description Fee
Type
Fee
Amount

1.0 Project Management Fixed $2,050

2.0 Kings CAG Modeling Request Fixed $9,650

3.0 Prepare Traffic Operational Analysis (TOAR) Fixed $14,350 Total Estimated Fee $26,050
Notes:

1. Expenses for reproduction, mailing, mileage, etc. are billed separately per our attached Charge Rate Schedule.

2. All time-and-materials fees will be invoiced monthly based on the level of effort in terms of hours relative to our Charge Rate Schedule.

3. When a Task is set on a time-and-materials fee basis, it signifies that it is not possible to accurately predict the amount of work effort required typical of on-call type services. QK will work with the client to set expectations where applicable.

4. Tasks billed by fixed fees will be invoiced monthly based on the percentage of work completed.

5. Additional Services requested in writing and approved by the client will be provided on a time-and-materials basis.

6. The Fee Estimate is good for a period of 90 days from the date of the proposal. After 90 days, the Fee Estimate is subject to change.

AUTHORIZATION OF SERVICES
Services described herein will be authorized upon execution of an Amendment to the Architectural and Engineering Consultant Agreement between QK and the City of Hanford for the project. We can begin our services upon receipt of a Notice to Proceed.

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CITY OF HANFORD
D e p a r t m e n t o f P u b l i c W o r k s
900 South 10th Ave. • HANFORD, CA 93230-5234 • (559) 585-2550 ENGINEERING DIVISION CONTRACT CHANGE ORDER NO. 3 REV. NO. ___ PROJECT East Lacey Blvd. Pedestrian Facilities Project – PS&E SHEET 1 OF 1 TO CONTRACTOR: QK CONTRACT NO. 21800000-823619.

YOU ARE HEREBY DIRECTED TO MAKE THE HEREIN DESCRIBED CHANGES FROM THE PLANS AND SPECIFICATIONS OR DO THE FOLLOWING DESCRIBED WORK NOT INCLUDED IN THE PLANS AND SPECIFICATIONS ON THIS CONTRACT.

NOTE: THIS CHANGE ORDER IS NOT EFFECTIVE UNTIL APPROVED BY THE CITY.

Contract Amount: $869,482.90
CCO#1 $49,088.36
CCO#2 $26,050.00
DESCRIPTION OF WORK TO BE DONE, ESTIMATE OF QUANTITIES AND PRICES TO BE PAID. SEGREGATE BETWEEN ADDITIONAL WORK AT CONTRACT PRICE, AGREED PRICE AND FORCE ACCOUNT. UNLESS OTHERWISE STATED, RATES FOR RENTAL OF EQUIPMENT COVER ONLY SUCH TIME AS EQUIPMENT IS ACTUALLY USED AND NO ALLOWANCE WILL BE MADE FOR IDLE TIME.

CHANGE REQUESTED BY: City of Hanford
THE LAST PERCENTAGE SHOWN IS THE NET ACCUMULATED INCREASE OR DECREASE FROM THE ORIGINAL QUANTITY IN THE ENGINEER’S ESTIMATE.

1.Prepare National Environmental Protection Agency (NEPA) analysis on East Lacey Boulevard between 10 th Avenue to east of Sierra Drive, including all basins and easement. The City of Hanford was able to obtain a Federal earmark for $7.3 million that requires that NEPA approval be completed on the street improvement portion of the project. The NEPA analysis was not originally required on this portion of the project because it was being constructed solely with State and Local funding.

For a net increase of $58,290.00.

ESTIMATED COST THIS CHANGE: $58,290.00
CONTRACT TOTAL, INCLUDING THIS CHANGE $1,002,911.26
BY REASON OF THIS ORDER THE TIME OF COMPLETION WILL BE AS FOLLOWS: 23 weeks added for NEPA (concurrent with Traffic Analysis)
APPROVAL RECOMMENDED, ENGINEER _________________________________________________ DATE ________________ APPROVED, CITY OF HANFORD __________________________________________________________ DATE __________________

WE, THE UNDERSIGNED CONTRACTOR, HAVE GIVEN CAREFUL CONSIDERATION TO THE CHANGE PROPOSED AND HEREBY AGREE

IF THIS PROPOSAL IS APPROVED, THAT WE WILL PROVIDE ALL EQUIPMENT, FURNISH ALL MATERIALS, EXCEPT AS MAY

OTHERWISE BE NOTED ABOVE, AND PERFORM ALL SERVICES NECESSARY FOR THE WORK ABOVE SPECIFIED, AND WILL ACCEPT

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May 16, 2024
Lisa Dock
City Engineer
City of Hanford
900 S. 10th Avenue
Hanford, CA 93230
Subject: Lacey Boulevard Widening Project Revised Cost Proposal – Environmental Compliance Dear Ms. Dock:

Based on our recent discussions, enclosed is an extra work proposal for environmental compliance services relating to the Lacey Boulevard Widening Project from 10th Avenue to Sierra Drive for the City of Hanford.

Thank you for your continued confidence with the QK team. If you have any questions or would like to discuss this proposal further, please contact Jaymie Brauer or Jeff Cowart at (559) 733-0440. We look forward to beginning this work upon your approval.

Sincerely,
Jaymie Brauer Jeff Cowart, PE
Project Manager/Principal Planner VP of Municipal Services & Quality Control Enclosure: Scope of Services and Fee Estimate

cc: John Doyel, QK
Monique Mello, QK
P240268/220295.03
jb/cm/jd

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Scope of Services and Fee Estimate
Lacey Boulevard Widening Project Environmental Compliance City of Hanford Page 1 of 5
Lacey Boulevard Widening Project Environmental Proposal (P240268/220295.03) May 16, 2024

BACKGROUND
Quad Knopf, Inc. (dba QK) has completed 60% plan sets for the Lacey Boulevard Widening Project from 10th Avenue to Sierra Drive. During the design and preparation of these plans, the City of Hanford was able to obtain a Federal earmark for $7.3 million that requires that a National Environmental Policy Act (NEPA) approval be completed on the street improvement portion of the project. The NEPA analysis was not originally required on this portion of the project because it was being constructed solely with local funding.

Per the Caltrans Local Assistance Procedure Manual (LAPM), Preliminary Engineering work includes location and environmental studies, NEPA approval, California Environmental Quality Act (NEPA) approval, preliminary utility investigations and engineering work associated with utility relocation, preliminary design, final design (Plans, Specifications and Estimates, PS&E), and other related work including assistance with Requests for Information (RFI) and other costs of advertising leading to physical construction of a project. Preliminary Right-of-Way (R/W) activities include pre-acquisition activities such as estimating, title search, legal descriptions, and preliminary property map preparation and studies as needed for NEPA compliance.

Project Information
Street Improvements
The majority of East Lacey Boulevard does not have curb and gutter, and is striped with two lanes, dual left turn lanes, and edge lines. There are sections of East Lacey Boulevard that have existing curb and gutter that will be utilized in the final design if in good condition. Broken and cracked sections of existing curb and gutter and sidewalk will be shown to be replaced.

The street section along East Lacey Boulevard shall follow the guidance of the provided Master Plan with respect to surface grades. A Full Depth Reclamation process is desired by the City in order to utilize in place materials and reduce cost. The Contractor shall adhere to the Guide for Partial- and Full- Depth Pavement Recycling in California provided by Caltrans, Guideline: UCPRC-GL-2020-01.

There is an existing 12” water main, and other high priority facilities (i.e.: HP gas main) that are in East Lacey Boulevard. The drainage requirements along with the minimum cover requirements for pipelines shows that the profile of East Lacey Boulevard requires adjustment and raising of centerline grades in areas. The consultant will provide plans that include the reconstruction of East Lacey Boulevard, with the roadway to be replaced with a new structural section.

Storm Drain Facilities
East Lacey Boulevard is an existing arterial roadway with two travel lanes and a center dual left turn. The majority of East Lacey Boulevard does not have curb and gutter, sidewalk, or storm drainage facilities. The project will include the development of two separate storm drainage systems with new basins.

Storm Drainage System West
Storm system west includes the installation of storm drain pipeline, and the construction of a Regional Storm Drainage Basin located east of Wilson Lane and north of East Lacey Boulevard approximately 1200 feet to the approximate alignment of East Whitney Drive. The city owns the parcel that the basin will be constructed on. The

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City of Hanford Page 2 of 5
Lacey Boulevard Widening Project Environmental Proposal (P240268/220295.03) May 16, 2024 consultant shall prepare legal descriptions and exhibits for the acquisition of storm drain easements across the affected parcels.

Storm Drainage System East
Storm system east includes the installation of storm drain pipeline, and the construction of a Regional Storm Drainage Basin located on City owned property north of SJVRR/UPRR, and east of 8 3/4th Avenue alignment. The storm drain pipe on 9th Avenue going north to the basin will require a jack and bore under the SJVRR/UPRR and easements going to the east to the basin. Services will include initiating and obtaining approvals and permits for the work within the railroad right of way.

The City owns the parcel that the basin will be constructed on. The consultant shall prepare legal descriptions and exhibits for the acquisition of storm drain easements across the affected parcels.

Sanitary Sewer
The existing sanitary sewer lift station at the NW corner of East Lacey Boulevard and 9 ¼ Avenue will be abandoned, and new sewer mains will be installed from the lift station to their connection point at the existing manhole at the intersection of East Lacey Boulevard and 9th Avenue.

The project includes coordination with San Joaquin Valley Railroad/Union Pacific Railroad for crossing design and permitting for construction.

SCOPE OF SERVICES
TASK 1.0 NEPA ENVIRONMENTAL COMPLIANCE
It is anticipated that NEPA will require a Categorical Exclusion with studies. That determination will be made based on the completion of a Caltrans Preliminary Environmental Study (PES) form. Caltrans may prepare some technical memos or studies for the NEPA, but it is assumed the studies used for the IS/MND will suffice for Caltrans (they will be prepared in the Caltrans format to ensure acceptability). If additional studies such as noise study or a Phase 1 Environmental Site Assessment is required by Caltrans, the City will issue a change order to the Consultant at the time they are identified.

The environmental phase shall include NEPA approval for East Lacey Boulevard from 10th Avenue to 150 feet east of Sierra Drive, including basins and easements. Environmental clearance must be approved prior to the City performing any right of way appraisals or acquisitions.

The project area shall include all existing and proposed improvements for East Lacey Boulevard and all off site construction areas for the storm drainage improvements for the project, including identifying easements, temporary construction easements, storage areas, basins (parcel owned by City), stockpile areas, and all effected locations that could be considered in the construction of the project.

Subtask 1.1 NEPA
i. QK will prepare the required PES form and backup documentation and provide submittal to Caltrans in an electronic format to the City. The City will make all submittals and communications with Caltrans for all phases of the project. An Inter-Agency Consultation letter and responses regarding air quality will also be prepared.
ii. QK will prepare the necessary exhibits required to complete the PES form.

Deliverables:
 PES Form in PDF format
 Inter-Agency Consultation letter

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City of Hanford Page 3 of 5
Lacey Boulevard Widening Project Environmental Proposal (P240268/220295.03) May 16, 2024 TASK 2.0 TECHNICAL STUDIES
We assume the following studies will be required by the City for use in the NEPA document. The studies will be completed in a Caltrans acceptable format for use in the NEPA document, if required by Caltrans.

Subtask 2.1 Air Quality Study - Small Project Analysis Level (SPAL) and Health Risk Assessment (HRA) The project falls within the criteria to be analyzed under the San Joaquin Valley Air Pollution Control District (SJVAPCD) Small Project Analysis Levels (SPAL) requirements. The SJVAPCD has established thresholds of Significance for criteria pollutant emissions, which are based on the SJVAPCD New Source Review (NSR) offset requirements for stationary sources. Using the project type, size, and number of vehicle trips, the SJVAPCD has pre- quantified emissions and determined values below which it is reasonable to conclude that a project would not exceed applicable thresholds of significance for criteria pollutants. In the interest of streamlining NEPA requirements, projects that fit the below descriptions up to the project sizes indicated both of the corresponding non-Heavy-Heavy Duty trucks (HHDT) and HHDT trip lengths, are deemed to have a less than significant impact on air quality and as such are excluded from quantifying criteria pollutant emissions for NEPA purposes.  Conduct an extensive review of the proposed project construction and development plans such as phasing, timing, planned equipment use, current land uses of the impacted property, any projected demolition activities, grading (soil balancing, if required) and Traffic Study data.  Select and specify mitigation measures for the proposed project that may reduce the emissions impacts. Some of these measures may require client approval prior to report finalization.  Conduct emissions modeling to predict criteria pollutant impacts using the latest SJVAPCD and California Air Resources Board (CARB) approved modeling programs.
o Models and emissions calculation methods that may be utilized will consist of the latest approved versions of:
 CalEEMod;
 U.S.EPA AP-42 emissions factors and approved calculation methods; and  CARB’s EMFAC emissions factors for on-road vehicles.
 Review and determine the potential impacts the project may have based on the creation of, or increases in, Greenhouse Gas emissions (as identified in AB32, SB32, SB100 and SB350). This review will quantify such emissions, to the extent possible, and evaluate various methods and means that are feasible and reasonable to mitigate the potential impacts.
 Review current operations, conduct emissions modeling and determine the incremental increases in criteria pollutants and Greenhouse Gas emissions.
 Determine potential air quality impacts relative to consistency with the San Joaquin Valley Air Quality Attainment Plan.
 Determine potential air quality impacts to the local, state and federal Ambient Air Quality Standards posed by the project.
 Compare the project’s predicted incremental increase emissions to the California Environmental Quality Act (NEPA) and SJVAPCD air quality thresholds for area and operational emissions as well as construction emissions impacts. A potentially significant impact to air quality, as defined by NEPA would occur if the project caused one or more of the following to occur:
o Conflict with or obstruct implementation of the applicable air quality plan; o Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard; o Expose sensitive receptors to substantial pollutant concentrations; o Result in other emissions (such as those leading to odors) adversely affecting a substantial number of people.
 Review the cumulative impacts posed on the San Joaquin Valley Air Basin based on the analysis of the proposed project in conjunction with other approved and/or planned projects within a radius established by the BPD. The proposed cumulative impacts analysis will evaluate cumulative criteria pollutant impacts as well as cumulative GHG impacts.

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City of Hanford Page 4 of 5
Lacey Boulevard Widening Project Environmental Proposal (P240268/220295.03) May 16, 2024  Provide limited comment and technical support as needed to support the project through the initial regulatory comment period.
 Conduct a Health Risk Analysis (HRA) to predict health risks to nearest receptors based on projected impacts from Hazardous Air Pollutants. The HRA will utilize the latest SJVAPCD, CARB, and California Office of Environmental Health Hazard Assessment (OEHHA)-approved modeling programs and risk factors o Propose project modifications to reduce or eliminate health risks where appropriate.  Revise the HRA based on the proposed project design changes that may reduce adverse health risk impacts.

Deliverable:
 AQIA/SPAL/HRA Report in PDF format
Subtask 2.2 Reconnaissance Biological Survey and Letter Report QK biologists will conduct a survey with 100 percent visual coverage of the biological study area (project area) and a 250-foot buffer, where feasible. The survey will identify the area surrounding the project site and assess the potential for occurrence of federally listed special status plant or wildlife species, specifically bird species who may inhabit the large trees. QK biologists will complete a database search and literature review. A letter report will also be prepared that analyzes impacts to federally listed species that are known to occur in the area. The report will be submitted along with the IS/MND and used as a part of the PES package.

QK assumes that Section 7 informal consultation with United States Fish and Wildlife Service (USFWS) will not be required. We also assume that based on the results of the biological survey, there will be no impacts to federally listed species and Section 7 informal consultation with US Fish and Wildlife Service will not be required. If however, Section 7 consultation is required, a contract amendment may be required as well Deliverables:
 Biological Resources section of the IS/MND in PDF format  Letter Report in PDF format for PES package
Subtask 2.3 Cultural Resources
Under contract with QK, ASM Affiliates will assist with fulfilling the regulatory requirements for the NEPA.

Archaeological fieldwork will comprise an intensive pedestrian survey of the project area of potential effect (APE).

The survey will be designed to meet all professional requirements, including the Secretary of the Interior’s Standards and Guidelines. A survey will be conducted at each site by a qualified archaeologist and a historical assessment of structures in the vicinity of the project will be conducted. ASM will prepare a written draft technical report that will summarize the background, research, methodology, and results of the work described above, The Native American Heritage Commission (NAHC) will be contacted to search their Sacred Lands files and to obtain a tribal contact list. QK will prepare and send outreach letters to the tribes on the contact lists to request information they might have about tribal cultural resources within the project areas.

QK assumes that Section 106 consultation with the State Historic Preservation Office will not be required.

Deliverable:
 Cultural Resource Assessment Report in PDF format
If additional studies outside of Caltrans support are required, the City and QK will negotiate any additional costs associated.

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City of Hanford Page 5 of 5
Lacey Boulevard Widening Project Environmental Proposal (P240268/220295.03) May 16, 2024

SCHEDULE
Task Description Duration

1.0 NEPA Environmental Compliance*

1.1 NEPA 8 weeks

2.0 Technical Studies**

2.1 Air Quality Study – Small Project Analysis (SPAL) and Health Risk Assessment (HRA)
7 weeks

2.2 Reconnaissance Biological Survey and Report 2 weeks

2.3 Cultural Resources 6 weeks

3.0 Agency Coordination Ongoing
*Upon completion of all studies.
**Upon receipt of a static project description and construction schedule.

FEE ESTIMATE
Tasks 1.0 through 3.0 will be billed on a Fixed Fee (FF) basis and Task 4.0 will be billed on a Time and Materials (T&M) basis as shown in the following table.

Task Description Fee Type Fee Amount

1.0 NEPA Environmental Compliance

1.1 NEPA FF $10,120

2.0 Technical Studies

2.1 Air Quality Study – Small Project Analysis (SPAL) and Health Risk Assessment (HRA)
FF $15,560

2.2 Reconnaissance Biological Survey and Report FF $8,950

2.3 Cultural Resources FF $17,160

3.0 Agency Coordination T&M $6,500
Total Estimated Fee $58,290
Notes:

1. Expenses for reproduction, mailing, mileage, etc. are billed separately per our attached Charge Rate Schedule.

2. All time-and-materials fees will be invoiced monthly based on the level of effort in terms of hours relative to our Charge Rate Schedule.

4. Tasks billed by fixed fees will be invoiced monthly based on the percentage of work completed.

5. Additional Services requested in writing and approved by the client will be provided on a time-and-materials basis.

6. The Fee Estimate is good for a period of 90 days from the date of the proposal. After 90 days, the Fee Estimate is subject to change.

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City of Hanford January 2016
Pedestrian and Bicycle Plan 3 – 23

2035 BIKEWAY PLAN Figure
3 - 6

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14.N.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Approval of a professional services agreement with Meeder Public Funds, Inc. to provide investment management services at an annual fee of approximately $58,000 annually for up to five years.

RECOMMENDATION:

Recommendation: Approval of a professional services agreement with Meeder Public Funds, Inc. to provide investment management services at an annual fee of approximately $58,000 annually for up to five years.

Recommended Motion: I move to award and authorize the City Manager to enter into a professional services agreement with Meeder Public Funds, Inc. for an annual fee of approximately $58,000 annually for up to five years.

BACKGROUND:

The primary purpose of the City’s cash is to provide residents of Hanford with services. It is the policy of the City and other like municipalities to invest public funds in a manner that will provide high investment return and with the maximum security while meeting the daily cash flow demands and conforming to all state and local statutes governing the investment of the public funds.

The City actively maintains its cash operating accounts (Wells Fargo) at a minimum of $2.5 million.

Operating and savings accounts make little to no interest. Cash beyond that amount is considered idle cash. In order to maximize the earnings potential on idle cash, the City utilizes government pools including the State of California LAIF, California CLASS and the Tulare County Pool. Additionally, idle cash (until spent according to budget) is used to purchase low-risk investments with registered security dealers where the highest interest rates can be sought.

The City's cash investment portfolio has increased in size over the last few years. As of the last Treasurer’s report dated March 31, 2024, the portfolio was $118.9 million as compared to $75.1 million in the same quarter ending in 2021 (due to growth in operating reserve amounts in all funds, capital funds accumulation per Council approved Budget and Policy to establish reserves and funding for capital projects). As the City’s portion of investments with registered security dealers grows, oversight and management of these accounts also increases. Oversight and management include monitoring operating accounts for idle cash to invest in, monitoring security maturities, requesting quotes, security selections, quick execution of purchases, submission of purchase authorization forms, execution of wire transfers and system input and tracking of securities.

Finance’s core responsibility is to make sure the City has enough money to pay its obligations, audit and budget. While investing idle cash is an important function of the department it cannot always be

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prioritized during busy seasons of the year and due to staffing restraints. When time constraints arise the easiest executions by staff are transfers to the government pools. The government pools currently have a balance of $70 million which is the largest portion of our portfolio. Staff would continue to utilize these investment options seeking the best rate of return depending on the market, though more of the City’s idle cash would be under the management of an investment advisor.

There are a few recognized firms in the industry that offer investment management services. Staff was introduced to Meeder Public Funds at a local California Society of Municipal Finance Officers- San Joaquin chapter meeting where they presented and offered insight into their operations and references to people who were also members of the local chapter.

AWARDED CONTRACTS

In the most recent three months, Meeder has competitively been awarded contracts with City of Santa Ana, City of Laguna Beach and City of Long Beach. Staff recommends award based on piggybacking off the competitive processes used recently at these other cities. Other client references include:

WHY MEEDER?

Meeder demonstrates significant experience in managing local government investments in compliance with investment policies, understands the importance of cash flow assessment, and emphasized monthly reporting that included information reports and access to real time portfolio information through a web portal.

Experience: Meeder has over half a century of managing investments. Currently manages assets of 367 public entities and has over $150 billion dollars of assets under advisement. The Meeder team has significant experience in managing public entity portfolios, with Portfolio Managers averaging more than 18 years of experience in the fixed income markets managing the portfolios of public entities

Holistic Approach: The Meeder team will work with the City to take a holistic approach to the investments of its funds, focusing on its entire financial picture, reviewing the City’s cash flow, and offering recommendations on all aspects of the City’s treasury management process.

Trusted Advisors: Meeder’s goal is to be the City’s trusted advisor and Meeder is available for the City in all aspects of its treasury management program, not just the investment of its funds. Other services include:

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Outsourcing the Management of City Investments:

It allows for several compelling advantages.

Expertise and Specialization- Outsourcing allows cities to tap into the expertise of professional investment managers who specialize in managing portfolios. These experts stay updated on market trends, risk management strategies, and investment opportunities. By outsourcing, cities can access a broader range of investment products and strategies that may not be feasible to manage in-house.

Although staff invest idle cash as soon as possible, availability is limited in managing investments for the highest returns that may be possible.

Improved Investment Solutions- Outsourcing advisors often deliver better investment solutions due to specialized knowledge and resources of external investment managers. The City can benefit from customized investment strategies tailored to specific financial goals and risk tolerance.

Risk Management- Professional investment managers actively monitor and manage risks associated with investments. They diversify portfolios, conduct due diligence, and adjust strategies as needed.

Outsourcing helps cities mitigate risks and adhere to regulatory requirements.

Cost Efficiency- While outsourcing investment management incurs fees, these costs are often outweighed by the potential benefits of improved investment performance and risk management.

Staff believes that will be realized.

Compliance and Regulatory Oversight- Investment firms are subject to stringent regulatory oversight and compliance requirements, ensuring that they operate within the bounds of the law and adhere to industry best practices. By partnering with a reputable investment firm, the City can enhance transparency and accountability in its investment practices, reducing the risk of regulatory violations and reputational damage.

PRICING (EXHIBIT A)

Meeder’s annual advisory fees are asset-based and are on a tiered schedule.

For example, if the City had $85 million of assets under management with Meeder, the total annual fees would be approximately $57,366. The City expects Meeder to provide a greater portfolio return than the City currently earns, offsetting the fees to be paid. For example, based on current portfolio allocation and current interest rates versus Meeder’s proposed allocation, it would provide an approximate return of $1,000,000. After fees are paid, the City could expect approximately $942,634 more in return than it would have earned otherwise. In fiscal year 2023 interest income earned was approximately $1.7 million based on lower rates and passive monitoring. Meeder has included an example of the City’s portfolio as is with static interest rates versus how they would reposition our portfolio to give an “apples to apples” comparison of the benefits.

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Additionally, staff has negotiated three years’ worth of fee credits based on management of assets which were already purchased with current brokers. Year 1- $15,000 total credit, Year 2- $8,500 total credit, and Year 3- $2,500 total credit. With credit included, Year 1 annual fees would be further reduced to approximately $42,366. Pricing is competitive with other firms.

Most importantly, the contract allows the City to end the agreement at any time with a 30-day written notice. Advisory fees would cease at that point in time. The City has the ability to “try” the services without being required to lock into a year’s long contract with no way out.

Based on staff’s thorough analysis, cost-benefit and overall services received, we believe that the City outsourcing the management of the City’s investment portfolio will maximize investment returns in a safe and beneficial way for the City.

FISCAL IMPACT:

Based on allocation of earnings across all funds offset by investment earnings. Staff anticipates a greater gain to interest income which would more than offset management fees. This is a net zero impact to the General Fund.

ATTACHMENTS:

1. Exhibit A

2. MPF Investment Management Agreement

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SOURCE:HTTPS ://WWW.CAMPONLINE.COM/CURRENT -RATE5
Investment Rate Balance
LAIF 4.31% $22,701,801
Tulare County Pool 3.24% $47,425,712
Brokerage Account 3.54% $29,731,983
Total Yield 3.54% $99,859,496
Estimated Net Interest
Income
$3,567,553
Investment Rate Balance
CLASS 5.41% $15,127,513
Meeder 4.99% $55,000,000
Brokerage 3.54% $29,731,983
Total Yield 4.62% $99,859,496
Management Fee Estimate
(First Year) $15,000 Credit
.05% $42,366
Estimated Net Interest
Income
$4,573,045
Current Meeder Sample
What can Meeder do for you?
Estimated Fee’s Year 2nd and 3rd Year
Management Fee Estimate
(Second Year) $8,500 Credit
.058% $48,866
Management Fee Estimate
(Third Year) $2,500 Credit
.065% $54,866

EXHIBIT A

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MPF Investment Management Agreement – MPF 001 (Rev 6-23) Page 1

Investment Management Agreement
Meeder Public Funds
This Investment Management Agreement (“Agreement”) is effective as of the date executed by and between Meeder Public Funds, Inc. (“Meeder”), its applicable affiliates, and the undersigned account owner (“Client”).

1. Investment Management Services . Under this Agreement, Meeder provides discretionary investment management services for public entity clients in accordance with the terms of the applicable state investment code and investment policy.

2. Appointment. Client appoints Meeder as discretionary investment manager to manage the assets deposited in any account subject to the terms of this Agreement (“Account”). Meeder accepts the appointment as investment manager and shall invest, reinvest and manage the securities, cash and other assets of the Account subject to any Investment Policy Statement provided by Client. Meeder shall provide advice only with respect to assets in the Account and shall have no responsibility for the actions or non -actions of predecessor investment advisors or for the management of assets other than the assets allocated to the Account.

3. Trading Authorization. Client grants Meeder discretionary trading authority and appoints Meeder as agent and attorney-in-fact with respect to investments in the Account. Meeder may direct the purch ase, sale, exchange, conversion, delivery or other acquisition or disposition of securities and other investments in the Account and act on behalf of Client in all other matters incidental to the handling of Account investments , all without prior consultation with Client.

4. Custody. Meeder will not assume physical custody of the Account or any portion of it. Client shall establish a custodial account with a qualified custodian (“Custodian”). Client will receive from the Custodian account statements and confirmations identifying assets and transactions in the Account. All transactions will be consummated by payment to, or delivery by, the Custodian of all cash, securities and other assets due to or from the Account. The Custodian shall be responsible for investing any daily cash balances in the Account and Meeder will not exercise discretion to select sweep vehicles for the Account.

5. Investment Objectives and Restrictions . Client may provide Meeder with an Investment Policy Statement or other written directions setting forth the investment objectives and any specific investment restrictions or limitations which govern the Account. Meeder shall be entitled to rely on such guidelines, objectives and restrictions relating to the Account as it may receive from Client. It is Client’s responsibility to inform Meeder in writing of any changes or modifications to the se directions, which shall be given ten days in advance of any such change.

6. Brokerage. Unless otherwise directed, Meeder will place trades for the Account through such brokers or dealers as it may select. When selecting brokers, Meeder's primary consideration will be the broker's ability to provide best execution of trades and Meeder may consider the quality and reliability of the brokerage services, trade price and commission, as well as research and other services provided by the broker -dealers.

7. Trade Aggregation . Meeder may aggregate trades for multiple clients when, in the adviser’s judgment, aggregation is in the best interests of the clients involved. Orders are aggregated to facilitate best execution and allocate equitably among clients the effects of any market fluctuations that might have otherwise occurred had these orders been placed independently. Where it is not possible to obtain the same execution price for all securities purchased or sold on an aggregated basis, Meeder may allocate trades equitably among its clients using the average execution price.

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MPF Investment Management Agreement – MPF 001 (Rev 6-23) Page 2

8. Fees. For the services provided in accordance with this Agreement, Client will pay an investment advisory fee as indicated on Schedule A to this Agreement. Investment advisory fees do not include custody fees charged by Client’s selected Custodian. Where Client has elected to have fees deducted , Client authorizes the Custodian to deduct fees from the Account and pay them to Meeder.

9. Promoter Arrangements. Meeder accepts Clients referred through unaffiliated third parties (“Promoters”) and may pay cash compensation for the endorsement of Meeder’s services, which provides the Promoter with an incentive to refer clients. Clients will not incur any additional fees for being referred to Meeder by a Promoter.

Clients that engage Meeder as their investment adviser as a result of a referral by a Promoter will receive a written Promoter disclosure statement describing the nature and terms of the arrangement, including the amount payable to the Promoter.

10. Local Government Investment Pools . Where appropriate, M eeder may recommend the use of local government investment pools in which M eeder or one of its affiliates earn advisory and/or administration fees .

Assets placed in these pools are not included among eligible assets when calculating the investment advisory fee.

Because Meeder or its affiliates receive fees in connection with programs we sponsor or recommend, use of these programs presents a conflict of interest.

11. Third-Party Payments. Meeder or its affiliates receive compensation from unaffiliated third parties for endorsing or recommending certain financial products to its clients. This arrangement presents a conflict of interest because it provides M eeder with an incentive to solicit and secure participation in the program . Asset based advisory fees are not charged for assets invested in products that pay indirect compensation to Meeder.

12. Proxy Voting. Meeder does not accept or assume authority to vote proxies for its public fund clients.

Clients will receive their proxies or other solicitations directly from their Custodian. Client agrees that Meeder will not advise or act for Client in any legal proceedings, including bankruptcies or class actions, involving securities held or previously held by the Account or the issuers of such securities.

13. Electronic Delivery. Client consents to electronic delivery of all documents from Meeder, including but not limited to a copy of the executed Agreement, statements, confirmations, Meeder’s Form ADV Part 2 and amendments thereto , and other general communications delivered to Client’s electronic mail address of record .

Delivery of communications to Clients in this fashion will be deemed effective unless Meeder is notified otherwise.

Client is responsible for maintaining an accurate and up to date email address and to ensure that Client at all times has the ability to receive communications directed in this manner.

14. Confidentiality. All information and advice furnished by either party to the other, including their respective agents and employees, shall be treated as confidential and shall not be disclosed to third parties except as otherwise required by law or as agreed to in writing by Client . Notwithstanding the foregoing, Client consents to the use of Client's name in sales and marketing material used by Meeder or its affiliates solely for the purpose of identifying the Client as an investment advisory client.

15. Services to Other Clients . Client understands that Meeder serves as investment adviser for other clients and will continue to do so. Client also understands that Meeder, its personnel and affiliates ("Affiliated Persons") may give advice or take action in performing their duties to other clients, or for their own accounts, that differ from advice given to or action taken for Client. Meeder is not obligated to buy, sell or recommend for Client any security or other investment that Meeder or its Affiliated Persons may buy, sell or recommend for any other client or their own accounts.

16. Meeder’s Representations . Meeder represents that it is a registered investment adviser under the Investment Advisers Act of 1940.

17. Client’s Representations . Client represents and acknowledges that: (i) Client is the sole owner of the Account assets and has full power and authority to enter into this Agreement and to commit the assets to Meeder's management and supervision; (ii) that the person signing this Agreement on behalf of Client is authorized and empowered to establish accounts and commit the assets to Meeder's management and supervision on the entity’s

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MPF Investment Management Agreement – MPF 001 (Rev 6-23) Page 3 behalf; (iii) Client has received Meeder's current Form ADV , Part 2A and B ; and ( iv) Client has received a copy of Meeder's Privacy Policy.

18. Term. This Agreement may be terminated by either party for any or no reason upon delivery by first class U.S. mail, postage prepaid, or delivery by hand, of a written “Notice of Termination” to the other party at least thirty (30) days prior to the date of the intended early termination of this Agreement. Termination of this Agreement will not affect the status, obligations or liabilities of the parties to this Agreement that arose prior to such termination.

19. Limitation of Liability . Except for negligence, malfeasance or violation of applicable law, neither Meeder nor its officers, directors or employees shall be liable to Client for any action performed, or omitted to be performed , or for any errors of judgment in managing the Account. Nor shall Meeder be liable to Client for any act or failure to act by any other third party. The federal securities laws impose liabilities under certain circumstances on persons even when they act in good faith. Therefore, nothing in this Agreement shall in any way constitute a waiver or limitation of any rights that Client may have under any federal or state securities laws.

20. Assignment. This Agreement may not be assigned by either party without the consent of the other party.

Meeder will provide Client at least thirty (30) days prior written notice of any proposed assignment, and Client’s consent will be presumed unless Client notifies Meeder otherwise in writing prior to the date of the assignment indicated on the notice.

21. Amendment. This Agreement may be amended by Meeder with thirty (30) days prior written notice to Client and may be amended immediately upon notice to the extent reasonably required to satisfy federal or state regulatory requirements. Notwithstanding the provisions of Section 18 of this Agreement, Client may terminate this Agreement immediately upon written notice if Client finds an Amendment to this Agreement to be unacceptable.

22. Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Ohio without giving effect to any conflict or choice of law provisions of that State .

23. Severability. If any provision of this Agreement is or should become inconsistent with any law or rule of any governmental or regulatory body having jurisdiction over the subject matter of this Agreement, the provision will be deemed to be rescinded or modified in accordance with any such law or rule. In all other respects, this Agreement will continue and remain in full force and effect.

24. Affiliates. To the extent necessary to carry out the terms of this Agreement, any named affiliate of Meeder shall be deemed to be a party to the Agreement for that purpose.

25. Insurance. Meeder shall maintain insurance consistent with the requirements set forth on Schedule B to this Agreement,

26. Attorneys' Fees . If an action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other reasonable relief to which he may be entitled.

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MPF Investment Management Agreement – MPF 001 (Rev 6-23) Page 4 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers or agents to become effective as of the day and year first written above.

MEEDER PUBLIC FUNDS, Inc. CLIENT

BY BY

TITLE TITLE

SIGNATURE SIGNATURE

DATE DATE

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MPF Investment Management Agreement – MPF 001 (Rev 6-23) Schedule A

Meeder Public Funds
Schedule of Fees

This schedule sets forth the standard annual investment advisory fee applicable to the Account under this Agreement. The schedule is tiered and each tier of assets under management will be assessed at the rate set forth in the schedule.

Investment advisory fees are subject to a minimum fee of $ 10,000 per year. Fees are calculated and billed monthly in arrears based on the value of the securities, cash and other assets in the account at the end of the billing period. Unless otherwise agreed, fees are deducted directly from the Account.

Meeder agrees to reduce the monthly fee by $1,240 per month in year 1, $709 per month in year 2, and $209 per month in year 3.

Discretionary Accounts
Assets Under Management Annual Advisory Fee
Up to $25,000,000 0.09%
$25,000,000 - $50,000,000 0.07%
$50,000,000 - $100,000,000 0.05%
Over $100,000,000 0.03%

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MPF Investment Management Agreement – MPF 001 (Rev 6-23) Page 6 Schedule B – Insurance Requirements
a. Meeder, at Meeder’s own cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies.

i. Workers Compensation Coverage. For employees working in California, workers compensation coverage as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than ONE MILLION AND NO/100 DOLLARS ( $1,000,000) per accident for bodily injury or disease.

ii. Commercial General Liability (CGL) Coverage. Insurance Services Office (ISO) Form CG 0001, including products and completed operations, with a limit of no less than TWO MILLION AND NO/100 DOLLARS ($2,000,000) per occurrence for bodily injury, personal injury, and property damage, and a general aggregate limit of no less than FOUR MILLION AND NO/100 DOLLARS ($4,000,000).

iii. Professional Liability Coverage. Meeder will maintain Professional Liability coverage with limits no less than TWO MILLION AND NO/100 DOLLARS ($2,000,000) per occurrence or claim, and TWO MILLION AND NO/100 DOLLARS ($2,000,000) policy aggregate.

iv. Commercial Crime Coverage. Meeder will maintain Commercial Crime insurance that shall include the following coverages or their substantial equivalents: employee dishonesty and theft, forgery or alteration, and computer fraud and funds transfer fraud. Meeder’s commercial crime policy shall have minimum combined limits of not than ONE MILLION AND NO/100 DOLLARS ($1,000,000) per occurrence; however, coverage limits shall not be less than a minimum amount of four percent (4%) of the total amount of consideration set forth under this Agreement. Meeder shall submit an applicable Certificate of Insurance (ACORD 25) to City.

City will be named as loss payee on Meeder’s Commercial Crime policy.

If Meeder maintains higher limits than the minimums shown above, City requires and shall be entitled to coverage for the higher limits maintained by Meeder.

Meeder’s insurance policies shall be “occurrence” policies and not “claims -made” coverage except for Professional Liability Coverage. “Claims-made” policies must satisfy the following requirements: (i) the retroactive date of coverage must be shown and must precede the effective date of this Agreement; (ii) coverage shall be maintained and evidence of coverage must be provided for at least five (5) years after completion of the Agreement work; and (iii) if coverage is canceled or non-renewed and not replaced with another claims-made policy form with a retroactive date preceding the Agreement effective date, Meeder must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Meeder may maintain an Umbrella policy in conjunction with the insurance policies referenced above. In such case, Meeder shall be deemed to have satisfied the insurance requirements of this Agreement as long as: (i) the coverage limits of the Umbrella policy and of the underlying liability policy(ies), when combined, satisfy each of the per occurrence and aggregate requirements identified in this section; and (ii) coverage under the Umbrella policy is as broad as and includes all incidents and events covered by the underlying insurance that it supplements.

b. Any deductibles or self-insured retentions must be declared to and approved by City.

c. The policies are to contain, or be endorsed to contain, the following provisions:

i. City and its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL coverage with respect to liability arising out of work or operations performed by or on behalf of Meeder including materials, parts, or equipment furnished in connection with such work or operations; products used by Meeder. General liability coverage can be provided in the form of an endorsement to Meeder’s insurance at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33 or CG 20 38 and CG 20 37 if a later edition is used. The coverage shall contain no special limitations on the scope of protection afforded to City and its officers, officials, employees or volunteers.

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MPF Investment Management Agreement – MPF 001 (Rev 6-23) Page 7 ii. For any claims related to this Agreement, Meeder’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as to City and its officers, officials, employees, and volunteers.

Any insurance or self-insurance maintained by City and/or its officers, officials, employees, or volunteers shall be in excess of Meeder’s insurance and shall be non-contributory.

iii. Each insurance policy required above shall provide that coverage shall not be modified or canceled, except with notice to City.

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII.

Meeder shall furnish City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Meeder’s obligation to provide them. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

d. Meeder hereby grants to the City and its officers, officials, employees, and volunteers a waiver of any right to subrogation which any insurer of Meeder may acquire against the City and/or its officers, officials, employees, and volunteers by virtue of the payment of any loss under such insurance. Meeder agrees to obtain endorsements necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

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14.O.

AGENDA

STAFF REPORT

MEETING DATE: 6/4/2024 AGENDA SECTION: CONSENT CALENDAR

SUBJECT:

Presentation of the Report on the City of Hanford's Audit of the Financial Statements for the year ending June 30, 2023 (Fiscal Year 2023)

RECOMMENDATION:

Recommendation: Staff recommends that City Council review the Report on the Audit of Financial Statements from Rogers, Anderson, Malody and Scott, LLP, for the year ended June 30, 2023 (Fiscal Year 2023).

Recommended Motion: This is an informational item, no action is required.

BACKGROUND:

State law requires the City of Hanford to prepare audited financial statements for each fiscal year.

The City is engaged in its first year of its agreement with Rogers, Anderson, Malody and Scott, LLP (RAMS) for preparation of financial statements with an independent auditor's report. The City received an unqualified opinion (clean) in relation to the 2022/2023 financial statements for the fiscal year ending June 30, 2023 by its' independent auditors RAMS.

The audit can be summarized as follows:
- Auditors have issued an unqualified opinion (clean)
- Financial condition of the General Fund improved (due to one-time revenues and budget savings) - Enterprise Funds show there potential need for rate adjustments - General Fund Reserve at approximately 22% of General Fund Budgeted Expenditures

Since 2020, the City Council (Council) has established some key financial policies to improve the financial condition of the City. The policies as memorialized in Resolution 2020-29-R and 2022-20-R look to:
- Adopt a balanced budget
- Establish General Fund Reserve of 35% for operating reserves and contingency reserve for fiscal emergencies
- Minimum 15% reserves in proprietary and internal service funds unless other requirements exist

For the fiscal year 2022/2023 (FY23) the City Council passed a balanced budget. The General Fund last year grew to near a 22% reserve and generally, fund balances were positive in FY23. Auditor identified issues or concerns regarding internal control or reporting are outlined below:

Material Weakness - Deficiency or a combination of deficiencies in internal control such that there is

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a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis.

Significant Deficiency - Deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

The City had no material weaknesses or deficiencies identified in FY23.

In the Management Letter on Internal Control, there was one recommendation listed as 'Finding 1- Payroll':

Finding 1- Payroll

Condition and context:

During our audit, we noted that there was a lack of segregation of duties in the City’s accounting process over pay rates and lack of documentation of preparer and reviewer process over payroll registers. Proper segregation of duties dictate that the functions of recording, authorization, custody and execution are not dominated by one individual. Adequately segregated duties and proper documentation help to reduce the possibility of fraud and defalcations from occurring and to ensure the integrity of the information provided by the City’s financial reporting system.

Recommendation:

In order to provide greater controls over this area, we suggest that someone outside the payroll process input payrate changes into the payroll system and individuals in charge of processing and finalizing payroll sign and date payroll registers as proof of review.

Management Response was:

Management concurs with this recommendation and will immediately implement segregation of duties by requiring someone outside the payroll process will input or verify salary changes in the system each pay period. Additionally, an outside review of the payroll register prior to finalization will be added as a standard procedure. This will add greater internal control over payroll registers in addition to a second staff person in the Payroll Division that occurred this fiscal year to mitigate control one person could have.

Table A "Governmental Fund Financial Results" below, summarizes how these funds performed and a snapshot of their conditions as of June 30, 2023. The General Fund shows just over $10 million in fund balance, most of which is unrestricted and available for Council's use. A portion of this increase is due to a change in revenue accounting as of this fiscal year recognizing sales tax revenues from May/June that were received in July/August 2023, for many years prior these revenues would have been recognized in the subsequent fiscal year. This indicates the increase in General Fund unrestricted fund balance is partially due to one-time revenue adjustment. This represents an approximate 22% reserve, based on General Fund expenditures for FY24. Staff recommends continuing building this reserve back up to reach the minimum 35% goal, through careful consideration of excess spending from General Fund available balance and limiting special projects in the General Fund.

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The City has four major proprietary (business like) funds summarized in Table B. These funds provide essential services for customers for water, sewer, storm drain and refuse. In addition, some minor funds are included as follows; airport, courthouse and intermodal facility operations.

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The City should continue to pursue cost reductions, operational efficiencies, cost recovery, and minimize staffing additions. In order to maintain long-term planning goals, financial resources must be accounted for and set aside in order to fulfill Council goals.

Staff will be working in the upcoming two-year budget to adequately address the financial needs of the City and work with the Council on adoption of a balanced and sustainable budget.

City Council has in place a comprehensive Reserve and Pension Funding Policy (Resolution 2022- 20-R) which will continue to help the City year by year improve its financial standing. It is important to keep in mind, there are significant demands on the General Fund and costs to operate the City continue to increase. Current budget projections do not show huge increases in revenues in upcoming years, which will limit efforts of the City to build up reserves, take care of deferred capital needs or increase services. To address deferred capital needs or increase services, other revenue will be needed or a significant amount of time to accumulate funding.

FISCAL IMPACT:

This item is informational, there is no fiscal impact from this report. It is an accomplishment for the City at FY23 to now have a 15% operational reserve (about $6.5 million). In accordance with adopted Reserve Policy in Resolution 2022-20-R no additional funds will be transferred to capital funds or

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internal service funds as the General Fund is not at its 35% reserve. Based on the FY24 updated budget, the General Fund reserve will be at approximately 22%. Council's adopted goal is 35% (15% in operating reserve and 20% in Contingency Reserve), of which the City has made progress in FY23 primarily due to having a balanced budget and one-time revenue/revenue adjustment.

ATTACHMENTS:

1. Financial Statements with Independent Auditors Report Fiscal Year 2023 (PDF)

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City of Hanford,
California

FINANCIAL STATEMENTS WITH
INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED JUNE 30, 2023

Prepared by the Hanford Finance Department

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City of Hanford

For the Fiscal Year Ended June 30, 2023

TABLE OF CONTENTS

List of Principal Officials ............................................................................................................... i

Independent Auditor's Report ................................................................................................. 1

Management's Discussion and Analysis ................................................................................ 5

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ............................................................................................. 16 Statement of Activities ................................................................................................... 17

Fund Financial Statements:

Balance Sheet – Governmental Funds ......................................................................... 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ........................................................................................ 19 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................... 20 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................... 21

Proprietary Funds:

Statement of Net Position ............................................................................................. 22 Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 24 Statement of Cash Flows .............................................................................................. 26

Fiduciary Funds:

Statement of Fiduciary Net Position .............................................................................. 30 Statement of Changes in Fiduciary Net Position ........................................................... 31

Notes to the Financial Statements ...................................................................................... 32

Required Supplementary Information:

Schedule of Changes in the Net Pension Liability and Related Ratios ............................... 81 Schedule of the City's Proportionate Share of the Net Pension Liability ............................. 82 Schedule of Plan Contributions ........................................................................................... 8 3 Schedule of Changes in Total OPEB Liability and Related Ratios ..................................... 84 Schedule of Contributions - OPEB ...................................................................................... 85 Budgetary Comparison Schedules (GAAP Basis):

General Fund ............................................................................................................... . 86 CDBG Home/Housing Fund .......................................................................................... 87 Transportation Development Act Fund ......................................................................... 88 American Rescue Plan Act Fund .................................................................................. 89 Notes to Budgetary Comparison Required Supplementary Information .............................. 90

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City of Hanford

For the Year Ended June 30, 2023

TABLE OF CONTENTS, (Continued)

Supplementary Information Section:

Non-Major Special Revenue Governmental Funds:

Combining Balance Sheet ............................................................................................. 91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .... 95

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual (GAAP Basis):

CMAQ Transportation Fund ........................................................................................... 99 Park Impact Fees Fund ................................................................................................ 100 Parking Fund ............................................................................................................... 101 Downtown Reinvestment Fund ................................................................................... 102 Landscaping Assessment District Fund ...................................................................... 103 City Housing Fund ....................................................................................................... 1 04 Central Parking and Business Improvement Fund ....................................................... 105 Fire Protection Impact Fee Fund ................................................................................. 106 Police Protection Impact Fees Fund ........................................................................... 107 Special Aviation Fund ................................................................................................. 108 Traffic Safety Fund ...................................................................................................... 109 Street Tree Committee Fund ....................................................................................... 110 State Gas Tax Fund .................................................................................................... 111 Public Housing Authority Fund .................................................................................... 112 Transportation Impact Fees ........................................................................................ 113 Cannabis Operations Fund ......................................................................................... 114 Capital Projects Fund .................................................................................................. 11 5

Internal Service Funds:

Combining Statement of Net Position ......................................................................... 116 Combining Statement of Revenues, Expenses and Changes in Net Position ............ 118 Combining Statement of Cash Flows .......................................................................... 120

Custodial Funds:

Combining Statement of Fiduciary Net Position .......................................................... 122 Combining Statement of Changes in Fiduciary Net Position ....................................... 123

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-i-

CITY OF HANFORD

PRINCIPAL CITY OFFICIALS
JUNE 30, 2023

CITY COUNCIL

NAME POSITION

Travis Paden Mayor
Mark Kairis Vice Mayor
Diane Sharp Council Member
Kalish Morrow Council Member
Lou Martinez Council Member

ADMINISTRATION

Mario Cifuentez City Manager
Griswold, LaSalle, Cobb, Dowd & Ginn, LLP City Attorneys Natalie Corral City Clerk
Christopher Tavarez Treas urer/Finance Director
Steve Pendergrass Fire Chief
Jason Waters Community Development Director
Parker Sever Police Chief
James Ross Public Works Director
Bradley Albert Parks and Community Services Director
Sarah Cardoza Human Resources Manager

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-1-

Independent Auditor’s Report

To the Honorable Mayor and Members of the City Council
City of Hanford, California

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Hanford (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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-2-
Other Matters

As discussed in Note 1 to the financial statements, in the year ended June 30, 2023, the city adopted new accounting guidance under Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription Based IT Arrangements . Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

The City’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial li kelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

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 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the required supplementary information, includi ng the management’s discussion and analysis and the schedules listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by t he Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s re sponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the nonmajor fund budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 20, 2024 on our consideration of the City of Hanford’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Hanford’s internal control over financial reporting and compliance.

San Bernardino, California
May 20, 2024

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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This discussion and analysis of the City of Hanford’s (the City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with the accompanying basic financial statements and t he accompanying notes to those financial statements.

FINANCIAL HIGHLIGHTS

 Assets and deferred outflows of the City exceed its liabilities and deferred inflows at the close of the most recent fiscal year 2023 by $349.9 million. Of this amount, about $29.8 million in unrestricted net position may be used to meet the City’s ongoing obligation to citizens and creditors.

 As of June 30, 2023, the City’s governmental funds reported combined ending fund balances of $65.1 million.

 Approximately 15% of the combined governmental fund balances is considered available for spending at the City’s discretion.

 As of June 30, 2023, unassigned fund balance in the General Fund was $10.2 million, or

25.2% of total General Fund Expenditures.

 The City’s total debt decreased by $3.9 million during fiscal year 2023, which is due to the normal maturity of debt in the water system, the wastewater system, the citywide solar energy system, and the Pension Obligation Bond.

 The following pension liabilities totaling $23,317,736 are included in the financial statements as required by generally accepted accounting principles: General Government $18,241,132; Water System Enterprise $1,774,071; Wastewater Enterprise $1,054,821; Storm Drainage $193,644; Refuse Enterprise $1,689,878; Computer Maintenance $86,305; Building $55,320; and Fleet Management $222,565.

THE FINANCIAL STATEMENTS

The financial statements presented herein include all of the activities of the City of Hanford, California (the City) and its component units, using the integrated approach as prescribed by generally accepted accounting principles. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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These Government-Wide Financial Statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statements present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type activities separately. Additionally, certain eliminations have occurred as prescribed by the GASB statements regarding interfund activity, payables and receivables.

The Fund Financial Statements include statements for ea ch of the three categories of activities governmental, business-type and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The business-type activities are prepared using the economic resources measurement focus and the accrual basis of accounting. The fiduciary activities are agency funds, which only report a balance sheet and do not have a measurement focus. Reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach.

OVERVIEW OF THE FINANCIAL STATEMENTS

Government-Wide Financial Statements

The Statement of Net Position and the Statement of Activities

The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statements included all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenue and expenses are taken into account, regardless of when cash is received or paid.

These two statements reports the City’s net position and changes in them. Net position is the difference between assets and liabilities, which is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. Other factors to consider are changes in the City’s property tax base and sales tax base.

In the Statement of Net Position and the Statement of Activities, we separate the City activities as follows:

Governmental Activities - Most of the City’s basic services are reported in this category, including General Government, Police, Fire, Public Works, Parks and Community Services, and Community Development. Property and sales taxes, user fees, interest income, franchise fees, and state and federal shared revenues and grants generally finance these activities.

Business-Type Activities - The City charges a fee to customers to cover all or most of the cost of certain services it provides. The City’s Water, Sewer, Storm Drain, Refuse, Airport, Intermodal, and Courthouse Square Funds are reported in this category.

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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FUND FINANCIAL STATEMENTS

The City, like other state and local governments, uses fund accounting to account for a number of funding sources and activities. In general , fund accounting provides a mechanism for separately accounting for a variety of different funding sources, and enables the City to demonstrate compliance with legal and/or contractual requirements that may be associated with these funds. Thus, the accompanying fund financial statements present individual funds, organized into one of three groups based on the nature of the activities and their purpose:

Governmental, funds. In addition, the fund financial statements include a schedule that reconciles the fund financial statements to the Government-Wide Financial Statements. This is designed to explain the difference created by the integrated approach.

Governmental Funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general governmental operation and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences between the results shown in the governmental fund financial statements and those shown in the government-wide financial statements are explained in a reconciliation schedule following each governmental fund financial statement.

Proprietary Funds - When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Revenues, Expenses and Changes in Fund Net Position. In fact, the City’s enterprise funds are the same as the business-type activities reported in the government-wide statements, but provide more detail and additional information, such as cash flows, for proprietary funds. We use internal service funds (the other component of proprietary funds) to report activities that provide supplies ad services for the City’s other programs and activities – such as the City’s self-insurance, fleet maintenance, and computer maintenance funds. The internal service funds are reported with governmental activities in the government-wide financial statements.

Fiduciary Funds - The City is the trustee, or fiduciary, for certain funds held on behalf of various third parties. The City’s fiduciary activities are reported in a separate Statement of Fiduciary Net Assets. We exclude these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Notes to the Financial Statement -The notes to the financial statements provide information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain “required supplementary information” concerning the City’s progress in funding its obligation to provide pension benefits to its employees, budgetary comparison schedules for the general fund and other major funds.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

The City presents its financial statements under the reporting model required by Governmental Accounting Standards Board (GASB) Statement No. 34. The City is presenting prior fiscal years’ data for the purpose of providing comparative information for the Management Discussion and Analysis (MD&A).

Statement of Net Position

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $349,891,236 at the close of the 2022-2023 fiscal year.

By far, the largest portion of the City’s net position, 85%, reflects its investment in capital assets (e.g., land, buildings, machinery, infrastructure and equipment), less any outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, their value is not available for future spending. Although the City’s investment in the capital assets is reported net of related debt, it should be noted that the sources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.

Of the total current assets totaling $121,691,758, approximately 90.1% or $109,673,796, consists of unrestricted cash and investments. These funds are invested in accordance with State law and the City’s investment policy and include funds legally and/or contractually restricted as to their use.

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

-9-
2023 2022 2023 2022 2023 2022
ASSETS
Current assets 72,898,212 $ 71,598,372 $ 48,793,546 $ 61,023,629 $ 121,691,758 $ 132,622,001 $ Capital and non-current
assets (net of depreciation) 183,061,930 174,167,728 141,608,046 137,293,785 324,669,976 311,461,513 Total Assets 255,960,142 245,766,100 190,401,592 198,317,414 446,361,734 444,083,514 Deferred outflows of resources 23,984,845 38,670,202 4,251,547 6,437,228 28,236,392 45,107,430

LIABILITIES
Current and other liabilities 16,763,306 28,194,878 6,912,906 1,686,955 23,676,212 29,881,833 Long-term liabilities 52,567,500 61,959,410 32,258,119 35,366,451 84,825,619 97,325,861 Total Liabilities 69,330,806 90,154,288 39,171,025 37,053,406 108,501,831 127,207,694 Deferred inflows of resources 15,349,043 16,624,319 856,016 17,192,813 16,205,059 33,817,132

NET POSITION
Net investment in capital assets 155,203,294 153,865,284 141,608,046 104,136,670 296,811,340 258,001,954 Restricted 23,285,547 44,531,429 4,743 2,379 23,290,290 44,533,808 Unrestricted 16,776,297 (20,739,018) 13,013,309 46,369,374 29,789,606 25,630,356 Total Net Position 195,265,138 $ 177,657,695 $ 154,626,098 $ 150,508,423 $ 349,891,236 $ 328,166,118 $

STATEMENT OF NET POSITION
Governmental Activities Business-Type Activities Total
An additional portion of the City’s net position of $23,290,290 represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $29,789,606, may be used to meet the government’s ongoing obligations to citizens and creditors.

At the end of the current fiscal year, the City is able to report an overall positive balance in net position. This means the City has sufficient current assets to satisfy both its current and long- term liabilities and fulfill its obligations pursuant to external restriction imposed on City assets. In short, the City is in sound financial condition.

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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Statement of Activities

As discussed earlier, the Statement of Net Position provides a measure of the financial health of an entity at a specific date in time. The Statement of Activities provides details of how net position changed from the beginning of the year to the end of the year, and whether net assets increased or decreased. From June 30, 2022 to June 30, 2023, the net position of the City as a whole increased, largely due to no extraordinary item expenses.

2023 2022 2023 2022 2023 2022

REVENUES
Program Revenues:

Charges for services 6,491,551 $ 6,167,249 $ 26,733,436 $ 27,232,541 $ 33,224,987 $ 33,399,790 $ Operating grants and contributions 8,160,718 6,605,894 - - 8,160,718 6,605,894 Capital grants and contributions 15,030,908 4,859,791 5,154,104 - 20,185,012 4,859,791 General Revenues:

Taxes 35,952,073 34,074,206 - - 35,952,073 34,074,206 Investment earnings 976,872 (1,088,261) 871,114 (643,781) 1,847,986 (1,732,042) Other revenues 403,833 89,960 2,384,559 2,931,612 2,788,392 3,021,572 Lease revenue - - 193,373 610,805 193,373 610,805 Total Revenues 67,015,955 50,708,839 35,336,586 30,131,177 102,352,541 80,840,016

EXPENSES
Governmental Activities:

General government 8,647,803 6,839,279 - - 8,647,803 6,839,279 Public safety 36,761,886 21,556,505 - - 36,761,886 21,556,505 Public works 4,151,802 4,644,058 - - 4,151,802 4,644,058 Parks and recreation 4,163,652 3,280,139 - - 4,163,652 3,280,139 Community development 2,468,828 2,248,980 - - 2,468,828 2,248,980 Interest expense 1,140,021 - - - 1,140,021 - Business-type Activities:

Water system - - 10,805,234 8,418,232 10,805,234 8,418,232 Wastewater system - - 7,127,609 5,776,311 7,127,609 5,776,311 Storm drain - - 1,624,217 945,288 1,624,217 945,288 Refuse - - 10,388,974 9,019,863 10,388,974 9,019,863 Airport - - 671,372 769,767 671,372 769,767 Intermodal - - 56,589 49,616 56,589 49,616 Courthouse square - - 63,436 97,270 63,436 97,270 Total Expenses 57,333,992 38,568,961 30,737,431 25,076,347 88,071,423 63,645,308 Increase in Net Position Before Transfers 9,681,963 12,139,878 4,599,155 5,054,830 14,281,118 17,194,708 Transfers (243,210) (924,456) 243,210 924,456 - - Loss on lease termination - - (724,690) - (724,690) - Extraordinary Item:

Settlement expenditures - (12,500,000) - - - (12,500,000) Change in Net Position 9,438,753 (1,284,578) 4,117,675 5,979,286 13,556,428 4,694,708 Net Position, Beginning of Year, Restated 185,826,385 178,942,273 150,508,423 144,529,137 336,334,808 323,471,410 Net Position, End of Year 195,265,138 $ 177,657,695 $ 154,626,098 $ 150,508,423 $ 349,891,236 $ 328,166,118 $ Governmental Activities Business-Type Activities Total

STATEMENT OF ACTIVITIES

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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The City’s revenue totaled $102,352,541 with 32.5% generated from charges for services and

35.1% generated from taxes. The largest source of revenues in governmental activities comes from taxes at 53.6%. This is typical in that tradi tional services provided by a city, such as public safety, parks, recreation, and public works, are primarily funded from property, sales, transient occupancy, and other local taxes. The largest source of revenues in Business-Type Activities comes from charges for services at 75.7%. The Business-Type Activities include enterprise fund operations, such as Water, Sewer, Refuse, Storm Drain, Airport, Courthouse Square and Intermodal Funds, all of which recover their costs through fees and charges just like a normal business.

Expenses of the City totaled $88,071,423. The two largest categories of expenses in governmental activities are public safety, which represents 41.8% of total costs, and general government, which represents 9.8% of total costs. However, in relation to Governmental Activity totals only, public safety makes up 64.1% of the total and general government makes up 15.1% of the total.

As shown in the Statement of Activities, net position increased from the prior year. In the funds included within the Governmental Activities category, net position increased by $17,607,443, or

9.6% due to no large extraordinary item expenses. In the funds included within the Business- Type Activities category, net position increased by $4,117,675, or 2.7% due to the increase in change in net position offset by a loss on lease termination.

FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS

As previously noted, the City of Hanford uses fund accounting to demonstrate compliance with legal and contractual requirements. This se ction provides an analysis and discussion of individual funds and fund types presented in the financial statements.

Governmental Funds – The focus of the City of Hanford’s governmental funds is on short-term inflows and outflows and balances of spendable resources. Such information is useful in assessing the City’s financial requirements. In particular, unreserved fund balance may serve a spending at the end of the fiscal year. The remainder of fund balance is reserved or designated to indicate that it is not available for new spending because it has already been committed to a specific future use.

The General Fund is the primary operating fund of the City of Hanford. At the end of the fiscal year, unassigned fund balance of the General Fund was $10,214,594 while total fund balance was $10,519,086. As a measure of the General Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total expenditures. The unassigned fund balance of the General Fund represents approximately 26.1% of General Fund expenditures.

Capital Improvement Funds, which are categorized as governmental funds, show fluctuations in their ending fund balances because they are primarily used to account for capital improvement projects that span more than one year. Therefore, the change in fund balance is generally due to the timing of funding, which generally occurs in one year, in relation to the timing of expenditures, which occur over more than one year. Any remaining fund balances are either reserved or earmarked specifically for the continuing cost of the related projects.

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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Proprietary Funds - The City’s proprietary funds include the Water, Wastewater, Storm Drain, Refuse, Airport, Intermodal, and Courthouse Square Funds. All of the proprietary funds are highly capital intensive, requiring a significant investment in capital equipment and facilities to conduct their operations, whether it be in water and sewer lines, water and wastewater treatment facilities or runways.

The Water System Fund has a total net position of $62,552,750 at the end of the fiscal year.

Total net position includes $54,175,496 invested in capital assets and $2,135 restricted for debt service, which are not available to pay for current expenses. The remaining net position of $8,375,119 is unrestricted and available to pay for current operating and capital needs of the fund.

The Refuse Fund has a total net position of $3,383,051 at the end of the fiscal year. Total net position includes $4,611,639 invested in capital assets, which are not available to pay for current expenses.

The Wastewater Fund has a total net position of $44,303,117 at the end of the fiscal year. Total net position includes $53,509,504 invested in capital assets and $2,608 restricted for debt service, which are not available to pay for current expenses.

The Storm Drain Fund has a total net position of $27,334,260 at the end of the fiscal year. Total net position includes $22,270,113 invested in capital assets, which are not available to pay for current expenses. The remaining net position of $5,064,147 is unrestricted and available to pay for current operating and capital needs of the fund.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets – The City of Hanford’s investment in capital assets for governmental and business type activities as of June 30, 2023 amounts to $304,291,702 (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements, machinery and equipment, park fac ilities and roads. The net increase in the City’s investment in capital assets for the current fiscal year was $13,135,012. This increase is a net result of annual depreciation, land acquisition, normal equipment replacement, and construction of typical capital assets. Significant capital asset events during the fiscal year included the following:

CIP OBJ # DESCRIPTION PROJECT COST
820623, 821638,
822633, 823637 2,862,841$
819623 1,221,858
822601 791,790
821621 760,693
823616 699,823
822639 572,554
821647 465,068
822644 361,841
823007 342,234
821615 340,000

NEW WATER SUPPLY WELL

RECONST/EMMA LEE/GRGV/CONQ

ARPA PUBLIC SAFETY RADIO REPL

CAMPUS DR RESURF/LACEY-GREENFL

UNSCH ARTERIAL UPGR/TRAF SIGNL

POLICE DEPT PARKING LOT EXPNSN

PAL PARKING LOT
REPR WELL 45 AND WELL 49

COMMERCIAL/RECYCLE DUMPSTER

STREET DIVISION MAINTENANCE

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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2 0 2 32 0 2 22 0 2 32 0 2 22 0 2 32 0 2 2
Land 60,455,620 $ 60,801,667 $ 11,950,873 $ 11,928,488 $ 72,406,493 $ 72,730,155 $ Construction in progress 817,424 309,369 4,044,330 1,195,166 4,861,754 1,504,535 Buildings and improvements 15,049,886 15,235,957 111,167,236 108,581,129 126,217,122 123,817,086 Infrastructure 76,738,687 67,915,574 - - 76,738,687 67,915,574 Machinery and equipment 9,193,868 9,535,396 14,445,607 15,586,623 23,639,475 25,122,019 Right to use leased asset 33,223 67,321 - - 33,223 67,321 Right to use SBITA asset 394,948 - - - 394,948 - Total Capital Assets 162,683,656 $ 153,865,284 $ 141,608,046 $ 137,291,406 $ 304,291,702 $ 291,156,690 $

CAPITAL ASSETS
(Net of Depreciation)
Governmental Activities Business-Type Activities Total

Long-Term Debt - At the end of the current fiscal year, the City had a total debt outstanding of $55,773,084.

2023 2022 2023 2022 2023 2022
Bonds payable 25,460,230 $ 26,506,940 $ 18,793,770 $ 20,709,060 $ 44,254,000 $ 47,216,000 $ Unamortized bond premium - - 483,118 556,425 483,118 556,425 Lease payable 34,041 67,378 - - 34,041 67,378 SBITA payable 353,827 - - - 353,827 - Notes payable - - 4,306,151 4,707,418 4,306,151 4,707,418 Finance purchase arrangement - - 6,341,947 7,181,833 6,341,947 7,181,833 Total Outstanding Debt 25,848,098 $ 26,574,318 $ 29,924,986 $ 33,154,736 $ 55,773,084 $ 59,729,054 $ Governmental Activities Business-Type Activities Total

OUTSTANDING DEBT

In the Business-Type Activities, the revenue bonds payable consists of four bond issues. In 2013, for the water system, the City received $12,725,000 from the issuance of Water Revenue Bonds for the purpose of refinancing a 2003 Revenue Bond and 2007 note payable, of which $5,055,000 remains. For the sewer system there remains a 2015 $2,425,000 Refunding Revenue Bond, and a 2012 $7,050,000 Refunding Revenue Bond. In 2022, the City issued Pension Obligation Bonds of which $4,263,770 is payable from the Business-Type Activities.

The notes payable portion of the outstanding debt totaling $4,306,151 consists of one loan. In 2002, the City obtained a $10,000,000 loan for the purpose of expanding the wastewater treatment plant.

The outstanding lease purchase amount, $6,341,947, is comprised of two different finance purchase arrangements. The first lease was for an energy efficient solar tracker system at the wastewater treatment plant for $4,325,556. The second lease was for a second energy efficient solar tracking system in the amount of $8,495,138. This system is located at the wastewater treatment plant but is serving the whole city.

For detail information regarding each of these bonds or notes, please refer to Note 5 Long-Term Debt.

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

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In May 2022, Council approved issuance of a $30,946,000 private taxable Pension Obligation Bond with maturity in 2039 to take advantage of historically low interest rates and to increase the City’s funding ratio of pension unfunded accrued liability with CalPERS. This bond issuance is intended to result in near term cash savings, smoother long-term budget reliability, flexibility in maturity and potential savings. In conjunction with this debt issue, the City established a pension funding policy that would work to establish prefunding this debt issue should sufficient reserve be established.

GENERAL FUND BUDGETARY HIGHLIGHTS

The fiscal year budget did not have significant net changes throughout the year.

Actual revenues were $3.6 million over estimated budget amounts. This was due to revenues exceeding projections of property tax. Expenditures were significantly under budget in the amount of $8.4 million. This was primarily a result of the roll-over of appropriation of a large capital park project in which grant funding was awarded. However, the project commencement expenses were minimal and will be spent over the next several years. In addition, unfilled positions throughout the year and some operational savings also attributed to the lower expenditures.

In addition, federal funding in the amount of $2.83 million was used to cover eligible costs of public safety workers performing essential work during Covid-19. This transfer in addition to other better than projected revenues allowed for over 100% growth of the general fund balance available.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES

The key assumptions and considerations in the General Fund revenue forecast for fiscal year 2022-2023 budget process were:

- Budget was balanced per Resolution 23-19-R
- Conservative revenue projections due to potential recession concerns and fiscal prudence - Reduction of non-essential expenditures
- Deferred capital replacements
- No increase to personnel or programs (unless offset by new revenues or expense reductions)

Resolution 22-20-R implemented a Reserve and Pension Funding Policy. This policy formally recognizes having a 35% goal of General Fund Reserve of unrestricted fund balance to budgeted expenditures in preparation of financial pressures or emergencies.

Items addressed in the budget were:

General Fund Operations – Maintain current services and increase efficiency in operations, decrease expenses where possible and anticipate minimal revenue growth with no draw from reserves. No capital projects unless offset by grants or related revenue. Accumulated capital outlay fund was used when a special revenue or restricted fund was not available for use.

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City of Hanford

Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2023

-15-
Parks and Community Services - Continue with a variety of recreation programs and activities.

Budget was increased for City’s second annual Winter Wonderland Event, which drew in many visitors from the region. In process of installing parks cameras and solar powered lights for overall park safety, funded by grant. Worked with consultants to identify land necessary for annexation for the new Heroes Park. Through some development projects required construction of park areas for citywide use and utilized impact fees for a new basketball court.

Streets - Resurfacing, sealing, and maintenance on several streets, replacing curb, gutters, and sidewalks, lane widening, signage replacement and installing/replacing traffic signals at various locations.

Airport - No capital projects this fiscal year.

Wastewater - Sewer main oversizing, extension and replacement, sewer video inspection, manhole repair/coating, maintain inventory of interchangeable spare pumps and lift station pump monitoring projects.

Water - The completion of various water main replacements and additions, and the continuation of meter replacement and automated meter reading device replacement. There were several well repairs necessary and new water supply wells as this is an ongoing project.

Storm Drain - Continued curb and gutter installation, increased flow capacity in Peoples Ditch, storm drain oversizing, pump station upgrades, basin improvements and installation of a new pump.

Building - Security modifications throughout City Hall as well as other City facilities. Completion of Civic Auditorium roof replacement.

REQUESTS FOR INFORMATION

This Financial Report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in the report or requests for additional financial information can be sent via e-mail to [email protected].

Formal written requests should be addressed to: City of Hanford, Attn: Finance Department, 315 N. Douty Street, Hanford, California 93230
.

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FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS

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City of Hanford

Statement of Net Position
June 30, 2023

The accompanying notes are an integral part of these financial statements. -16-
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 74,814,838$ 34,858,958 $ 109,673,796 $ Receivables 6,759,213 3,487,855 10,247,068 Leases receivables - 202,952 202,952 Internal Balances (9,490,940) 9,490,940 - Inventory 319,709 365,149 684,858 Deposits 289,500 14,000 303,500 Prepaid expenses and other assets 205,892 368,949 574,841 Loan receivables 20,378,274 - 20,378,274 Restricted cash and investments - 4,743 4,743 Capital Assets:

Capital assets, not being depreciated 61,273,044 15,995,203 77,268,247 Capital assets, net of accumulated depreciation 101,410,612 125,612,843 227,023,455 Total assets 255,960,142 190,401,592 446,361,734

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 22,547,037 3,660,907 26,207,944 Deferred outflows related to OPEB 1,437,808 590,640 2,028,448 Total deferred outflows of resources 23,984,845 4,251,547 28,236,392

LIABILITIES
Accounts payable 2,174,020 2,687,420 4,861,440 Salary and benefits payable 1,026,737 94,792 1,121,529 Accrued interest payable - 267,665 267,665 Deposits and unearned revenue 6,361,075 344,923 6,705,998 Compensated absences - current portion 327,654 36,083 363,737 Compensated absences - noncurrent portion 1,105,410 271,040 1,376,450 Long-term debt - current 1,873,820 3,482,023 5,355,843 Long-term debt - noncurrent 23,974,278 25,959,845 49,934,123 Unamortized bond premium - 483,118 483,118 Claims payable 5,776,000 - 5,776,000 Total OPEB liability 3,106,490 831,702 3,938,192 Net pension liability 18,605,322 4,712,414 23,317,736 Settlement liability - current 5,000,000 - 5,000,000 Total liabilities 69,330,806 39,171,025 108,501,831

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 14,738,664 476,933 15,215,597 Deferred inflows related to OPEB 610,379 182,321 792,700 Deferred inflows related to leases - 196,762 196,762 Total deferred inflows of resources 15,349,043 856,016 16,205,059

NET POSITION
Net investment in capital assets 155,203,294 141,608,046 296,811,340 Restricted for:

Street and Roads 15,276,502 - 15,276,502 Recreation 5,705,236 4,743 5,709,979 Landscape Maintenance 1,451,419 - 1,451,419 Public Safety 852,390 - 852,390 Unrestricted 16,776,297 13,013,309 29,789,606 Total net position 195,265,138 $ 154,626,098 $ 349,891,236 $

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City of Hanford

Statement of Activities
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -17-
Charges Operating Capital
for Grants and Grants and Governmental Business-type
Expenses Services Contributions Contributions Activities Activities Total Primary Government:

Governmental activities:

General government 8,647,803 $ 101,279 $ 3,861,918 $ - $ (4,684,606)$ - $ (4,684,606)$ Public safety 36,761,886 927,478 1,125,716 322,493 (34,386,199) - (34,386,199) Public works 4,151,802 1,127,022 1,884,294 13,740,355 12,599,869 - 12,599,869 Recreation 4,163,652 829,537 128,430 968,060 (2,237,625) - (2,237,625) Community development 2,468,828 3,506,235 1,160,360 - 2,197,767 - 2,197,767 Interest expense 1,140,021 - - - (1,140,021) (1,140,021) Total governmental activities 57,333,992 6,491,551 8,160,718 15,030,908 (27,650,815) - (27,650,815) Business-type activities:

Water system 10,805,234 9,985,458 - 2,289,780 - 1,470,004 1,470,004 Wastewater system 7,127,609 5,784,561 - 1,285,875 - (57,173) (57,173) Storm drain 1,624,217 1,455,905 - 1,578,449 - 1,410,137 1,410,137 Refuse 10,388,974 9,271,047 - - - (1,117,927) (1,117,927) Airport 671,372 143,299 - - - (528,073) (528,073) Intermodal 56,589 40,249 - - - (16,340) (16,340) Courthouse square 63,436 52,917 - - - (10,519) (10,519) Total business-type activities 30,737,431 26,733,436 - 5,154,104 - 1,150,109 1,150,109 Total Primary Government 88,071,423 $ 33,224,987 $ 8,160,718 $ 20,185,012 $ (27,650,815) 1,150,109 (26,500,706) General Revenues:

Taxes:

Property taxes 13,988,031 - 13,988,031 Sales and use tax 18,011,255 - 18,011,255 Franchise taxes 1,256,488 - 1,256,488 Other taxes 2,696,299 - 2,696,299
Investment earnings 976,872 871,114 1,847,986 Gain on disposal of capital assets 279,583 - 279,583 Loss on lease termination (724,690) (724,690)
Miscellaneous/other 124,250 2,384,559 2,508,809 Lease revenue - 193,373 193,373 Transfers - interfund (243,210) 243,210 - Total General Revenues and Transfers 37,089,568 2,967,566 40,057,134 Change in Net Position 9,438,753 4,117,675 13,556,428 Net Position
Beginning of year, as restated 185,826,385 150,508,423 336,334,808 End of year 195,265,138 $ 154,626,098 $ 349,891,236 $ Net (Expense) Revenue and Changes in Net Position
Functions/Programs
Program Revenues

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GOVERNMENTAL FUNDS

FINANCIAL STATEMENTS

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City of Hanford

Balance Sheet – Governmental Funds
June 30, 2023

The accompanying notes are an integral part of these financial statements. -18-
General Fund

CDBG/HOME/
Housing Fund
Transportation
Development
Act Fund
American Rescue
Plan Act
All Other Non-
Major
Governmental
Funds Total
Cash and investments 10,964,678 $ 2,139,933 $ 6,069,012 $ 6,216,756 $ 22,640,674 $ 48,031,053 $ Receivables 4,246,146 170,144 - - 780,813 5,197,103 Taxes receivable - - 1,460,388 - - 1,460,388 Loans receivable - 18,547,440 - - 1,830,834 20,378,274 Due from other funds 1,175,894 - - - - 1,175,894 Deposits 104,500 - - - - 104,500 Prepaid expenses and other assets 199,992 - - - 1,100 201,092 Advances to other funds - - - - 1,659,025 1,659,025 Total assets 16,691,210 $ 20,857,517 $ 7,529,400 $ 6,216,756 $ 26,912,446 $ 78,207,329 $ Liabilities:

Accounts payable 757,793 $ 32,570 $ - $ 5,528 $ 324,300 $ 1,120,191 $ Accrued wages payable 411,196 - - - 3,010 414,206 Advance from other governments - - - 6,357,940 - 6,357,940 Consumer deposits 3,135 - - - - 3,135 Settlement liability 5,000,000 - - - - 5,000,000 Due to other funds - - - - 230,309 230,309 Total liabilities 6,172,124 32,570 - 6,363,468 557,619 13,125,781 Nonspendable:

Loans receivable - 18,547,440 - - 1,830,834 20,378,274 Prepaid expenses 199,992 - - - 1,100 201,092 Deposits 104,500 - - - - 104,500 Restricted for:

Street and roads - 2,277,507 7,529,400 - 5,469,595 15,276,502 Recreation - - - - 5,705,236 5,705,236 Landscape maintenance - - - - 1,451,419 1,451,419 Public Safety - - - - 852,390 852,390 Committed for:

Parking and business improvement - - - - 3,537,705 3,537,705 Community development - - - - 7,550,690 7,550,690 Cannabis - - - - 126,255 126,255 Unassigned 10,214,594 - - (146,712) (170,397) 9,897,485 Total fund balances 10,519,086 20,824,947 7,529,400 (146,712) 26,354,827 65,081,548 Total liabilities and fund balances 16,691,210$ 20,857,517 $ 7,529,400 $ 6,216,756 $ 26,912,446 $ 78,207,329 $ Fund Balances (deficit):

ASSETS

LIABILITIES AND FUND BALANCES
Special Revenue

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City of Hanford

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2023

The accompanying notes are an integral part of these financial statements. -19-
Total Fund Balances Governmental Funds 65,081,548$
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets at historical cost 303,961,956 $
Right to use asset 879,090
Accumulated depreciation (141,706,471)
Accumulated amortization (450,919)
Adjustments for Internal Service Fund capital assets, net (7,092,494) 155,591,162 13,446,431
Compensated absences (1,433,064)
Pension obligation bonds (25,460,230)
Lease payable (34,041)
SBITA payable (353,827)
OPEB liability (3,106,490)
Net pension liability (18,605,322)
Adjustments for Internal Service Fund long term debt 2,068,775 (46,924,199) Deferred outflows related to pensions and OPEB 23,984,845 Adjustment for Internal Service Fund Deferred outflows related to pension (650,330) 23,334,515 Deferred inflows related to pensions and OPEB (15,349,043) Adjustment for Internal Service Fund Deferred inflows related to pension 84,724 (15,264,319) Total Net Position - Governmental Activities 195,265,138$ Capital assets: In governmental funds, only current assets are reported. in the Statement of Net Position, all assets are reported, including capital assets and accumulated depreciation:

Internal service funds are used by management to charge the costs of fleet maintenance, purchasing, risk management, building usage, and computer maintenance to individual funds.

The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Position.

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the governmental funds. Long-term liabilities at year- end consist of:

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City of Hanford

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -20-
General
Fund

CDBG/HOME/
Housing
Fund
Transportation
Development Act
Fund
American
Rescue Plan Act
All Other Non-
Major
Governmental
Funds Total

REVENUES
Taxes and special assessments 33,411,258$ - $ 1,423,998$ - $ 8,424,890$ 43,260,146 $ Aid from other government agencies 1,443,000 797,092 45,918 3,732,941 189,814 6,208,765 Licenses and permits 1,849,277 - - - - 1,849,277 Fines and forfeitures 202,822 - - - 39,853 242,675 Charges for services 3,205,579 - - - - 3,205,579 Revenue from use of money and property 469,550 328,875 100,397 128,976 308,146 1,335,944 Miscellaneous 69,171 1,891 - - 78,507 149,569 Total revenues 40,650,657 1,127,858 1,570,313 3,861,917 9,041,210 56,251,955

EXPENDITURES
Current:

General government 2,971,558 - 5,743 - 64,991 3,042,292 Public safety 23,465,277 - - - - 23,465,277 Public works 3,071,761 - - - 698,676 3,770,437 Recreation 4,670,976 - - - - 4,670,976 Community development 2,036,025 354,026 - - 326,519 2,716,570 Debt service:

Principal 1,243,300 - - - - 1,243,300 Interest 1,140,021 - - - - 1,140,021 Capital outlay 541,332 225,406 232,958 1,049,459 4,312,963 6,362,118 Total expenditures 39,140,250 579,432 238,701 1,049,459 5,403,149 46,410,991 Excess (deficiency) of revenues
over (under) expenditures 1,510,407 548,426 1,331,612 2,812,458 3,638,061 9,840,964

OTHER FINANCING SOURCES (USES)
Transfers in 3,880,591 43,117 - - 703,988 4,627,696 Transfers out (449,787) (169,872) - (2,833,333) (1,481,151) (4,934,143) Loss on lease termination - - - - (11,319) (11,319) Proceeds from sale of assets 784 - - - 303,240 304,024 Total other financing sources (uses) 3,431,588 (126,755) - (2,833,333) (485,242) (13,742) Net change in fund balances 4,941,995 421,671 1,331,612 (20,875) 3,152,819 9,827,222

FUND BALANCE (DEFICIT)
Beginning of year, as restated 5,577,091 20,403,276 6,197,788 (125,837) 23,202,008 55,254,326 End of year 10,519,086$ 20,824,947 $ 7,529,400 $ (146,712) $ 26,354,827 $ 65,081,548 $ Special Revenue

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City of Hanford

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities
Governmental Funds
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -21-
Total net changes in fund balances - governmental funds 9,827,222$ 6,996,125$
10,059,892
(7,402,116) 9,653,901
1,258,691
(476,192) 782,499
58,563
(197,921)
(10,362,345)
(323,166)
Changes in net position of governmental activities 9,438,753$ payments. In the statement of activities, OPEB expense includes the change in the net OPEB liability and related change in OPEB amounts for deferred outflows deferred inflows of resources.

Capital outlay expense
Contributed capital assets
Depreciation expense (net of internal service funds)
SBITA acquisition, net of internal service funds
Principal payments on long term liabilities, net of internal service funds use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.

Pension expenditures reported in the governmental funds includes the annual required contributions. In the statement of activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources.

OPEB expenditures reported in the governmental funds includes the actual premium purchasing, employee welfare, workers' compensation, general and unemployment insurance to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities:

Compensated absences expenses reported in the statement of activities do not require the Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation and disposals in the current period.

The issuance of long term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance cost, discounts and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. These amounts are the net effect of these differences in the treatments of long-term debt and related items.

Amounts reported for governmental activities in the statement of activities are different because:

Internal Service funds are used by management to charge the costs of fleet maintenance,

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Governmental Funds

PROPRIETARY FUNDS

FINANCIAL STATEMENTS

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City of Hanford

Statement of Net Position
Proprietary Funds
June 30, 2023

The accompanying notes are an integral part of these financial statements. -22-
Sewer Improvement Funds
Water System Wastewater Storm Drain Refuse
Fund Fund Fund Fund
Current assets:

Cash and investments 21,863,512 $ 7,169,840 $ 5,308,478 $ 354,695 $ Restricted cash and investments 2,135 2,608 - - Receivables 1,411,328 691,735 188,867 1,150,699 Lease receivables - - - - Deposits 10,000 4,000 - - Prepaid expenses 8,135 360,814 - - Inventory 365,149 - - - Due from other funds - 1,399,758 - - Advances from other funds 531,130 - - - Total current assets 24,191,389 9,628,755 5,497,345 1,505,394 Noncurrent assets:

Capital Assets:

Land 352,240 4,135,650 4,587,476 - Construction in progress 3,989,481 13,193 41,656 - Buildings and improvements 62,554,693 89,032,630 23,488,089 1,351,845 Machinery and equipment 18,092,631 2,427,022 1,163,479 9,053,231 Right to use assets - - - - Less accumulated depreciation (30,813,549) (42,098,991) (7,010,587) (5,793,437) Less accumulated amortization - - - - Capital assets, net 54,175,496 53,509,504 22,270,113 4,611,639 Total noncurrent assets 54,175,496 53,509,504 22,270,113 4,611,639 Total assets 78,366,885 63,138,259 27,767,458 6,117,033

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 1,378,213 819,453 150,435 1,312,806 Deferred outflows related to OPEB 179,760 154,080 - 256,800 Total Deferred Outflows of Resources 1,557,973 973,533 150,435 1,569,606 Current liabilities:

Accounts payable 2,277,727 138,372 12,302 252,113 Salaries and benefits payable 31,730 20,354 5,627 36,418 Interest payable 87,754 179,911 - - Deposits and unearned revenue 340,239 819 410 974 Due to other funds - 1,716,645 - - Advances to other funds 531,130 - - - Compensated absences - current portion 12,301 12,963 2,588 8,231 Bonds and notes payable - current portion 1,709,266 1,655,220 19,661 97,876 SBITA payable - - - - Total current liabilities 4,990,147 3,724,284 40,588 395,612 Noncurrent liabilities:

Compensated absences payable 115,871 42,131 23,871 89,167 Claims payable - - - - Unamortized bond premium 145,291 337,827 - - Bonds and notes payable 9,846,422 14,284,600 305,932 1,522,891 Total OPEB liability 265,267 210,694 - 355,741 Net pension liability (asset) 1,774,071 1,054,821 193,644 1,689,878 Total noncurrent liabilities 12,146,922 15,930,073 523,447 3,657,677 Total liabilities 17,137,069 19,654,357 564,035 4,053,289

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 179,550 106,756 19,598 171,029 Deferred inflows related to OPEB 55,489 47,562 - 79,270 Deferred inflows related to leases - - - - Total deferred inflows of resources 235,039 154,318 19,598 250,299

NET POSITION (DEFICIT)
Net investment in capital assets 54,175,496 53,509,504 22,270,113 4,611,639 Restricted for debt service 2,135 2,608 - - Unrestricted 8,375,119 (9,208,995) 5,064,147 (1,228,588) Total net position 62,552,750 $ 44,303,117 $ 27,334,260 $ 3,383,051 $

LIABILITIES
ASSETS

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City of Hanford

Statement of Net Position
Proprietary Funds
June 30, 2023 (concluded)

The accompanying notes are an integral part of these financial statements. -23-
Total Governmental
Airport Intermodal Courthouse Enterprise Activities Interna l Fund Fund Square Funds Service Funds
Current assets:

Cash and investments 124,554 $ 31,677 $ 6,202 $ 34,858,958$ 26,783,785 $ Restricted cash and investments - - - 4,743 - Receivables 5,127 38,328 1,771 3,487,855 101,722 Lease receivables - 202,952 - 202,952 - Deposits - - - 14,000 185,000 Prepaid expenses - - - 368,949 4,800 Inventory - - - 365,149 319,709 Due from other funds - - - 1,399,758 - Advances from other funds - - - 531,130 - Total current assets 129,681 272,957 7,973 41,233,494 27,395,016 Noncurrent assets:

Capital Assets:

Land 2,596,623 278,884 - 11,950,873 - Construction in progress - - - 4,044,330 - Buildings and improvements 10,123,741 1,305,817 - 187,856,815 670,777 Machinery and equipment 81,851 - - 30,818,214 17,410,846 Right to use assets - - - - 307,217 Less accumulated depreciation (6,628,540) (717,082) - (93,062,186) (11,114,837) Less accumulated amortization - - - - (181,509) Capital assets, net 6,173,675 867,619 - 141,608,046 7,092,494 Total noncurrent assets 6,173,675 867,619 - 141,608,046 7,092,494 Total assets 6,303,356 1,140,576 7,973 182,841,540 34,487,510

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions - - - 3,660,907 650,330 Deferred outflows related to OPEB - - - 590,640 - Total Deferred Outflows of Resources - - - 4,251,547 650,330 Current liabilities:

Accounts payable 2,522 588 3,796 2,687,420 1,053,829 Salaries and benefits payable 663 - - 94,792 612,531 Interest payable - - - 267,665 - Deposits and unearned revenue 2,481 - - 344,923 - Due to other funds - - 153,062 1,869,707 475,636 Advances to other funds 375,467 261,224 1,022,334 2,190,155 - Compensated absences - current portion - - - 36,083 58,872 Bonds and notes payable - current portion - - - 3,482,023 64,761 SBITA payable - - - - 100,367 Total current liabilities 381,133 261,812 1,179,192 10,972,768 2,365,996 Compensated absences payable - - - 271,040 - Claims payable - - - - 5,776,000 Unamortized bond premium - - - 483,118 - Bonds and notes payable - - - 25,959,845 1,007,654 Total OPEB liability - - - 831,702 - Net pension liability (asset) - - - 4,712,414 837,121 Total noncurrent liabilities - - - 32,258,119 7,620,775 Total liabilities 381,133 261,812 1,179,192 43,230,887 9,986,771

DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions - - - 476,933 84,724 Deferred inflows related to OPEB - - - 182,321 - Deferred inflows related to leases - 196,762 - 196,762 - Total deferred inflows of resources - 196,762 - 856,016 84,724

NET POSITION (DEFICIT)
Net investment in capital assets 6,173,675 867,619 - 141,608,046 7,092,494 Restricted for debt service - - - 4,743 - Unrestricted (251,452) (185,617) (1,171,219) 1,393,395 17,973,851 Total net position 5,922,223 $ 682,002 $ (1,171,219)$ 143,006,184 25,066,345 $ Adjustment to reflect the consolidation of internal service fund activities 11,619,914 Net Position of Business-type Activities 154,626,098$
Noncurrent liabilities:

Non-major Funds
ASSETS

LIABILITIES

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City of Hanford

Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -24-
Water Wastewater Storm Drain Refuse
Fund Fund Fund Fund

OPERATING REVENUES
Charges for services 9,985,458 $ 5,784,561 $ 1,455,905 $ 9,271,047 $ Other revenues 975,302 793,881 107,107 282,225 Total operating revenues 10,960,760 6,578,442 1,563,012 9,553,272

OPERATING EXPENSES
Personnel services 3,225,262 1,905,111 881,572 3,039,548 Services and supplies 4,847,626 2,922,381 728,858 6,555,755 Depreciation and amortization 2,299,013 1,788,007 337,586 697,244 Total operating expenses 10,371,901 6,615,499 1,948,016 10,292,547 Operating income (loss) 588,859 (37,057) (385,004) (739,275)

NONOPERATING REVENUES (EXPENSES)
Interest income 580,479 253,777 150,368 27,828 Interest expense (456,502) (552,886) (15,212) (75,723) Unrealized gain (loss) on investments (141,325) (23,905) (7,707) 27,805 Lease revenue - 154,022 - - Loss on disposal of capital assets - - - - Loss on lease termination - (724,690) - - Total Nonoperating Revenues (Expenses) (17,348) (893,682) 127,449 (20,090) Income (Loss) Before Capital Contributions
and Transfers 571,511 (930,739) (257,555) (759,365)

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions 2,289,780 1,285,875 1,578,449 - Transfers in (out) 241,153 (14,131) 20,967 - Total Capital Contributions and Transfers 2,530,933 1,271,744 1,599,416 - Change in Net Position 3,102,444 341,005 1,341,861 (759,365)

NET POSITION (DEFICIT)
Beginning of year 59,450,306 43,962,112 25,992,399 4,142,416 End of year 62,552,750 $ 44,303,117 $ 27,334,260 $ 3,383,051 $ Sewer Improvement Funds

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City of Hanford

Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds
For the Year Ended June 30, 2023 (concluded)

The accompanying notes are an integral part of these financial statements. -25-
Governmental
Airport Intermodal Courthouse Total Activities Internal Fund Fund Square Funds Service Funds

OPERATING REVENUES
Charges for services 143,299 $ 40,249 $ 52,917 $ 26,733,436$ 11,413,863 $ Other revenues 224,105 1,338 601 2,384,559 82,120 Total operating revenues 367,404 41,587 53,518 29,117,995 11,495,983

OPERATING EXPENSES
Personnel services 50,492 - - 9,101,985 1,864,645 Services and supplies 295,390 30,473 62,733 15,443,216 8,180,527 Depreciation and amortization 324,084 26,116 - 5,472,050 1,424,062 Total operating expenses 669,966 56,589 62,733 30,017,251 11,469,234 Operating income (loss) (302,562) (15,002) (9,215) (899,256) 26,749

NONOPERATING REVENUES (EXPENSES)
Interest income 2,801 1,404 947 1,017,604 617,553 Interest expense - - - (1,100,323) (50,163) Unrealized gain (loss) on investments (619) (739) - (146,490) (206,150) Lease revenue - 39,351 - 193,373 - Loss on disposal of capital assets - - - - (12,520) Loss on lease termination - - - (724,690) - Total Nonoperating Revenues (Expenses) 2,182 40,016 947 (760,526) 348,720 Income (Loss) Before Capital Contributions
and Transfers (300,380) 25,014 (8,268) (1,659,782) 375,469

CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions - - - 5,154,104 - Transfers in (out) (4,779) - - 243,210 63,237 Total Capital Contributions and Transfers (4,779) - - 5,397,314 63,237 Change in Net Position (Deficit) (305,159) 25,014 (8,268) 3,737,532 438,706

NET POSITION (DEFICIT)
Beginning of year 6,227,382 656,988 (1,162,951) 24,627,639 End of year 5,922,223 $ 682,002 $ (1,171,219)$ 25,066,345 $ Adjustment to reflect the consolidation of internal service funds 380,143 Change in Net Position of Business-type Activities 4,117,675 $ Non-major Funds

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City of Hanford

Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -26-
Sewer Improvement Funds
Water System Wastewater Storm Drain Refuse
Fund Fund Fund Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received for current services 10,193,508$ 5,859,117 $ 1,443,450 $ 9,104,481 $ Cash received for other operating revenues 975,302 793,881 107,107 282,225 Cash paid to suppliers for goods and services (2,867,060) (3,203,888) (730,524) (6,794,862) Cash paid for salaries and benefits (2,287,703) (1,445,312) (433,286) (2,536,490) Net cash provided (used) by operating activities 6,014,047 2,003,798 386,747 55,354

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Transfers (to) from other funds 241,153 (14,131) 20,967 - Loans from/(to) other funds (159,912) 476,799 - - Net cash provided (used) by noncapital financing activities 81,241 462,668 20,967 -

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Principal payments on long-term debt (1,535,665) (1,540,760) (13,386) (66,632) Interest payments on long-term debt (507,160) (623,213) (15,212) (75,723) Capital expenditures (3,066,847) (75,764) (917,368) (574,608) SBITA payments - - - - Lease income - (109,613) - - Net cash provided (used) by capital and related financing activities (5,109,672) (2,349,350) (945,966) (716,963)

CASH FLOWS FROM INVESTING ACTIVITIES
Unrealized gain (loss) on investments (141,325) (23,905) (7,707) 27,805 Interest received on investments 580,479 253,777 150,368 27,828 Net cash provided (used) by investing activities 439,154 229,872 142,661 55,633 Net increase (decrease) in cash and investments 1,424,770 346,988 (395,591) (605,976) Cash and investments, beginning of year 20,440,877 6,825,460 5,704,069 960,671 Cash and investments, end of year 21,865,647 $ 7,172,448 $ 5,308,478 $ 354,695 $ Reconciliation to Statement of Net Position:

Cash and investments 21,863,512 $ 7,169,840 $ 5,308,478 $ 354,695 $ Restricted cash and investments 2,135 2,608 - - Total cash and investments 21,865,647 $ 7,172,448 $ 5,308,478 $ 354,695 $

Page 174 of 410 ends

City of Hanford

Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023

The accompanying notes are an integral part of these financial statements. -27-
Total Governmental
Airport Intermodal Courthouse Enterprise Activities Internal Fund Fund Square Funds Service Funds

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received for current services 143,374 $ 8,123 $ 54,331 $ 26,806,384$ 11,390,886 $ Cash received for other operating revenues 224,105 1,338 601 2,384,559 82,120 Cash paid to suppliers for goods and services (313,021) (30,424) (61,320) (14,001,099) (6,695,529) Cash paid for salaries and benefits (49,645) - - (6,752,436) (2,043,991) Net cash provided (used) by operating activities 4,813 (20,963) (6,388) 8,437,408 2,733,486

CASH FLOWS FROM NONCAPITAL AND

RELATED FINANCING ACTIVITIES
Transfers (to) from other funds (4,779) - - 243,210 63,237 Loans from/(to) other funds (1) - 6,388 323,274 176,951 Net cash provided (used) by noncapital financing activities (4,780) - 6,388 566,484 240,188

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Principal payments on long-term debt - - - (3,156,443) (44,088) Interest payments on long-term debt - - - (1,221,308) (50,163) Capital expenditures - - - (4,634,587) (293,836) SBITA payments - - - - (206,850) Lease income - 36,778 - (72,835) - Net cash provided (used) by capital and related financing activities - 36,778 - (9,085,173) (594,937)

CASH FLOWS FROM INVESTING ACTIVITIES
Unrealized gain (loss) on investments (619) (739) - (146,490) (206,150) Interest received on investments 2,801 1,404 947 1,017,604 617,553 Net cash provided (used) by investing activities 2,182 665 947 871,114 411,403 Net increase (decrease) in cash and investments 2,215 16,480 947 789,833 2,790,140 Cash and investments, beginning of year 122,339 15,197 5,255 34,073,868 23,993,645 Cash and investments, end of year 124,554 $ 31,677 $ 6,202 $ 34,863,701$ 26,783,785 $ Reconciliation to Statement of Net Position:

Cash and investments 124,554 $ 31,677 $ 6,202 $ 34,858,958$ 26,783,785 $ Restricted cash and investments - - - 4,743 - Total cash and investments 124,554 $ 31,677 $ 6,202 $ 34,863,701$ 26,783,785 $ Non-major Funds

Page 175 of 410 ends

Hanford City CouncilJune 4, 2024

Hanford City Council
June 4, 2024